Core Viewpoint - BankUnited, Inc. reported strong Q3 earnings, surpassing estimates, but faced challenges with rising expenses and declining loan and deposit balances [3][4][5]. Financial Performance - Q3 2025 earnings were 95 cents per share, exceeding the Zacks Consensus Estimate of 84 cents and up from 81 cents in the prior year [3]. - Net income reached $71.9 million, a 16.9% increase year-over-year, compared to an estimate of $60.1 million [4]. - Quarterly net revenues were $275.7 million, a 7.3% increase year-over-year, but fell short of the Zacks Consensus Estimate of $279.8 million [5]. - Net interest income (NII) was $250.1 million, up 6.8%, with a net interest margin (NIM) expanding by 22 basis points to 3% [5]. - Non-interest income rose to $25.6 million, an 11.7% increase, primarily driven by higher deposit service charges and fees [6]. Expense and Asset Management - Non-interest expenses increased by 1% to $166.2 million, attributed to higher employee compensation and technology costs [7]. - Total loans decreased by 1% to $23.7 billion, while total deposits slightly declined to $28.6 billion [8]. Credit Quality - Provisions for credit losses were $11.6 million, a 25.2% increase from the prior year, with net charge-offs to average loans at 0.26%, up 10 basis points year-over-year [9]. Capital and Profitability Ratios - Common Equity Tier 1 risk-based capital ratio improved to 12.5%, up from 11.8%, and the total risk-based capital ratio increased to 14.4% from 13.9% [10]. - Return on average assets rose to 0.82% from 0.62%, and return on average stockholders' equity increased to 9.5% from 8.1% [10]. Future Outlook - Management projects mid-single-digit growth in total deposits and double-digit growth in non-interest-bearing demand deposits [12]. - NII growth is expected to be slightly better than mid-to-high single digits, with NIM anticipated to remain around 3% [12]. - Loan balances are expected to stabilize, with commercial and industrial loans projected to rise in the mid-single-digit range [13]. Industry Context - BankUnited is part of the Zacks Banks - Major Regional industry, with Truist Financial Corporation, a peer, reporting a 2% year-over-year revenue increase and a 19.8% expected earnings growth for the current quarter [17][18].