BankUnited Q4 Earnings Call Highlights

Core Financial Performance - BankUnited reported a strong fourth-quarter net income of $69.3 million, or $0.90 per share, with an adjusted net income of approximately $72 million, or $0.94 per share, excluding a one-time software write-down [2][6] - Pre-provision net revenue (PP&R) increased to $115.4 million, up from $109.5 million in the previous quarter, reflecting a year-over-year growth of about 14% [1][6] - The net interest margin expanded to 3.06%, a sequential increase of 6 basis points, attributed to deposit costs declining faster than loan yields [1][6] Deposit and Loan Growth - Total deposits increased by $735 million in the quarter and $1.5 billion for the year, with non-interest demand deposit accounts (NIDDA) rising by $485 million on a period-end basis [5][6] - Core loans rebounded significantly, increasing by $769 million in the quarter, with management guiding for approximately 6% core loan growth in 2026 [4][10] - NIDDA now represents 31% of total deposits, with a target of reaching around 33% by 2026 [5][7] Capital Management and Shareholder Returns - The board authorized an additional $200 million share repurchase program and increased the dividend by $0.02 [16] - The tangible common equity to tangible assets ratio was reported at 8.5%, with tangible book value per share rising to $40.14, indicating about 10% year-over-year growth [15][16] Credit Quality and Outlook - Criticized and classified loans decreased by $27 million, and non-performing loans fell by $7 million, with management expecting continued improvement in credit quality [12][13] - For 2026, management anticipates NIDDA growth of about 12%, total deposits growth of approximately 6%, and revenue growth of around 8% [17]