BankUnited (BKU) Up on Q2 Earnings Beat, NIM & Deposits Rise

Core Viewpoint - BankUnited's earnings were positively impacted by an increase in deposits, but were negatively affected by lower net interest income, non-interest income, loan balances, and higher expenses [1] Financial Performance - Quarterly net revenues were $250.2 million, a decrease of 4.5% year over year, but exceeded the Zacks Consensus Estimate of $243.5 million [2] - Net income was $53.7 million, down 7.4% year over year, surpassing the estimate of $48.2 million [8] - Net interest income (NII) was $226 million, down 5.7%, while the net interest margin (NIM) expanded by 25 basis points to 2.72% [9] - Non-interest income fell to $24.2 million, a decline of 5.1% from the prior year [9] Expenses and Provisions - Non-interest expenses rose by 8.6% to $157.7 million, primarily due to increases in all components except for depreciation of operating lease equipment [3] - The provision for credit losses was $19.5 million, an increase of 25.9% from the prior year [4] Loan and Deposit Trends - Total loans amounted to $24.63 billion, down 1.7% from the previous quarter, while total deposits increased to $27.76 billion, up 2.7% [10] Credit Quality and Capital Ratios - The ratio of net charge-offs to average loans was 0.12%, up 3 basis points from the previous year [11] - The Tier 1 leverage ratio improved to 8.2%, up from 7.6% a year earlier, and the Common Equity Tier 1 risk-based capital ratio rose to 11.6% from 11.2% [12] Market Reaction - Shares of BankUnited, Inc. (BKU) increased by 4.5% following better-than-expected second-quarter results, with earnings per share of 72 cents exceeding the Zacks Consensus Estimate of 65 cents [7]