BankUnited(US:BKU)2026-01-21 11:47Financial Performance - 4Q 2025 net income was $69.3 million, with diluted EPS of $0.90, reflecting a 6 basis point NIM expansion[1] - Full year 2025 net income reached $268.4 million, a 15% increase from 2024, with EPS of $3.53 compared to $3.08 in 2024[7] - Net income for Q4 2025 was $69.3 million, compared to $71.9 million in Q3 2025 and $69.3 million in Q4 2024[32] - Basic earnings per common share for the three months ended December 31, 2025, was $0.91, down from $0.96 in the previous quarter and $0.92 a year ago[39] - Adjusted net income for the three months ended December 31, 2025, was $72,050,000, reflecting a write-down on capitalized software of $3,770,000[49] Loan and Deposit Growth - Non-interest bearing deposits grew by $485 million in Q4 and $1.5 billion for the year, representing a 20% increase[12] - Total loans increased by $571 million in Q4, with core loans growing by $769 million[12] - Total deposits increased to $29.4 billion as of December 31, 2025, from $28.6 billion as of September 30, 2025[30] - Non-interest bearing demand deposits totaled $8,083,605 thousand, reflecting a stable funding base[36] Interest Income and Margin - Total interest income for Q4 2025 was $442.4 million, down from $452.9 million in Q3 2025 and $468.0 million in Q4 2024[32] - Net interest margin for Q4 was 3.06%, up 0.06% from the prior quarter and 0.22% from 4Q 2024[7] - The interest rate spread for the three months ended December 31, 2025, was 1.95%, compared to 1.86% for the previous quarter[34] - The company reported an interest rate margin of 2.95% for the year ended December 31, 2025, compared to 2.73% in 2024[36] Expenses and Provisions - Non-interest expense for Q4 2025 totaled $172.8 million, an increase of 4.0% from $166.2 million in Q3 2025 and 7.5% from $160.5 million in Q4 2024[22] - For the year ended December 31, 2025, non-interest expense was $663.5 million, up from $642.0 million in 2024, reflecting investments in employee compensation and benefits[22] - Provision for credit losses was $25.6 million for Q4, driven by increased specific reserves related to two C&I loans[17] Equity and Capital - The tangible common equity ratio improved to 8.5%, with tangible book value per share at $40.14, reflecting a 10% year-over-year growth[14] - Total stockholders' equity increased to $3,053,829,000 as of December 31, 2025, from $2,814,318,000 a year ago[49] - Tangible book value per common share was $40.14 as of December 31, 2025, compared to $39.27 in the previous quarter and $36.61 a year ago[41] Interest Rates and Yields - The average cost of deposits declined by 0.20% to 2.18%, with spot APY falling to 2.10% from 2.31% in the prior quarter[12] - The average rate paid on interest-bearing deposits decreased to 3.15% in Q4 2025 from 3.40% in Q3 2025, influenced by a lower Federal funds rate[23] - The tax-equivalent yield on loans decreased to 5.37% in Q4 2025 from 5.53% in Q3 2025, reflecting declining market rates[23] Asset and Liability Management - Total assets as of December 31, 2025, were $35.0 billion, slightly down from $35.1 billion as of September 30, 2025[26] - Total liabilities reached $32,091,072 thousand, with interest-bearing liabilities at $22,460,094 thousand and a total stockholders' equity of $3,094,687 thousand[34] - Loans averaged $23,697,215 thousand with an interest yield of 5.37%, while investment securities averaged $9,583,958 thousand with a yield of 4.93%[34] Performance Ratios - Return on average assets for the three months ended December 31, 2025, was 0.78%, consistent with the previous quarter and up from 0.66% a year ago[41] - Return on average stockholders' equity for the three months ended December 31, 2025, was 8.9%, down from 9.5% in the previous quarter and up from 8.5% a year ago[41] - Non-performing loans to total loans ratio was 1.54% as of December 31, 2025, down from 1.60% in the previous quarter and up from 1.03% a year ago[41]