UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Commission File Number: 001-35039 BankUnited, Inc. (Exact name of registrant as specified in its charter) | Delaware | | | 27-0162450 | | --- | --- | --- | --- | | (State or other jurisdiction of inco ...

Shares of BankUnited (NYSE: BKU ) have been a strong performer over the past year, thanks to solid deposit growth and a good capital position. However, like most regional banks, shares have been caught in the market downdraft this year. On Monday, BankUnited reported mixed Q1 results, andOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being under ...

BankUnited, Inc.’s (BKU) first-quarter 2025 earnings of 78 cents per share surpassed the Zacks Consensus Estimate of 74 cents. The bottom line compares favorably with 64 cents in the prior-year quarter.Results benefited from growth in net interest income (NII) and a decline in provisions. A marginal rise in deposits was another positive. However, a fall in loan balance, lower non-interest income and weak asset quality were the undermining factors. Shares of BKU lost 1.6% during yesterday’s trading session i ...

Financial Data and Key Metrics Changes - Net income for the quarter was $58,500,000 or $0.78 per share, slightly above consensus of $0.76 [7] - Net interest margin (NIM) was $2.81, down three basis points from the previous quarter [7] - Cost of deposits decreased by 14 basis points to 2.58% from 2.72% last quarter [8] - Cost of interest-bearing deposits fell by 21 basis points to 3.54% from 3.75% [8] - Average yield on loans declined from 5.6% to 5.48% [35] Business Line Data and Key Metrics Changes - Total loans decreased by $300,000,000, with $200,000,000 attributed to the residential book and $100,000,000 from the core commercial book [12] - Average non-interest bearing demand deposits (NIDDA) increased by $453,000,000 [10] - Total deposit growth, excluding brokered deposits, was $719,000,000 [11] Market Data and Key Metrics Changes - The weighted average loan-to-value (LTV) of the commercial real estate (CRE) portfolio was 55% [31] - The weighted average debt service coverage ratio was 1.78 [31] - CRE exposure totaled 26% of loans, which is lower than the industry average [31] Company Strategy and Development Direction - The company is focused on managing interest rate risk and maintaining a neutral position in various scenarios [19] - The management emphasized the importance of relationship-oriented clients and deposit growth [27] - The company plans to continue increasing dividends steadily over time [22] Management Comments on Operating Environment and Future Outlook - Management noted a larger "cone of uncertainty" regarding economic conditions and interest rates [17] - Despite uncertainties, management remains optimistic about client engagement and business growth [15] - The company is prepared for both positive and negative economic scenarios, with more capital and liquidity than ever [23] Other Important Information - The company completed a general ledger conversion successfully [5] - The average cost of total deposits declined to 2.52% at the end of the quarter [37] - The provision for credit losses was $15,000,000, with a stable allowance for credit losses (ACL) to loans ratio of 92 basis points [40] Q&A Session Summary Question: What is the impact of spread compression on new loans? - Management indicated that credit spreads have widened in the securities market and noted increased competition in the CRE space, leading to tighter spreads [48][49] Question: Any insights on the growth of nonperforming loans? - The increase in nonperforming loans is primarily in the C&I book, with no specific trends or concerns highlighted [52] Question: What percentage of DDA balances are subject to ECR? - Most commercial deposit accounts are subject to ECR, but the extent is not significant [54] Question: Are there any downgrades in the New York City office market? - Management believes they have moved past the worst of potential downgrades, with no surprises expected in the portfolio [103][104] Question: What is the outlook for margin and NII trajectory into the second quarter? - Management expects margin expansion driven by growth and transformation of the balance sheet mix, but specific quarter-by-quarter guidance was avoided [75][76]

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of BankUnited, Inc. ("BankUnited," "BKU" or the "Company") with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "could," "should," "seeks," "approximately," "predicts," ...

Here is how BankUnited performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for BankUnited here>>> Shares of BankUnited have returned -1.4% over the past month versus the Zacks S&P 500 composite's -4.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Net charge-offs to average loans: 0.3% versus 0.2% estimated by two analysts on a ...

Group 1: Earnings Performance - BankUnited, Inc. reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and up from $0.64 per share a year ago, representing an earnings surprise of 5.41% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times [2] - The company posted revenues of $255.41 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.42%, compared to year-ago revenues of $241.73 million [2] Group 2: Stock Performance and Outlook - BankUnited shares have declined approximately 11.9% since the beginning of the year, while the S&P 500 has decreased by 6.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.78 on revenues of $268.02 million, and for the current fiscal year, it is $3.15 on revenues of $1.08 billion [7] Group 3: Industry Context - The Zacks Industry Rank for Banks - Major Regional is currently in the top 29% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The favorable estimate revisions trend for BankUnited has resulted in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]

Financial Performance - For the quarter ended March 31, 2025, BankUnited reported net income of $58.5 million, or $0.78 per diluted share, a decrease from $69.3 million, or $0.91 per diluted share in the previous quarter[3]. - Net income for the three months ended March 31, 2025, was $58,476 thousand, a decrease of 15.6% compared to $69,302 thousand for the previous quarter[21]. - Earnings per common share, basic, decreased to $0.78 in Q1 2025 from $0.92 in Q4 2024, a decline of 15.2%[21]. - For the three months ended March 31, 2025, net income was $58,476,000, a decrease of 15.5% from $69,302,000 in the previous quarter[26]. Loan and Deposit Trends - Total loans declined by $308 million for the quarter, with core C&I and CRE segments down by $106 million, attributed to seasonality and high levels of payoffs[4]. - Non-interest bearing demand deposits grew by $453 million, or 5.9%, to 29% of total deposits, up from 27% at December 31, 2024[4]. - Total deposits increased to $28,057,825 thousand as of March 31, 2025, compared to $27,865,703 thousand at December 31, 2024, marking an increase of approximately 0.69%[19]. Interest Income and Margin - Total interest income for Q1 2025 was $443,689 thousand, down from $467,988 thousand in Q4 2024, reflecting a decrease of about 5.2%[21]. - The net interest margin decreased to 2.81% for the quarter, down from 2.84% in the previous quarter, reflecting a declining rate environment[12]. - Net interest income for Q1 2025 was $236,589,000, down from $242,944,000 in Q4 2024, reflecting a decrease of 2.0%[26]. Credit Quality - The provision for credit losses was $15.1 million for the quarter, compared to $11.0 million in the preceding quarter[9]. - Non-performing loans totaled $259.8 million, or 1.08% of total loans, compared to $250.7 million, or 1.03% of total loans at December 31, 2024[10]. - The allowance for credit losses was $219,747 thousand as of March 31, 2025, slightly down from $223,153 thousand at December 31, 2024[19]. - The ratio of the allowance for credit losses (ACL) to total loans remained stable at 0.92% at March 31, 2025[7]. - Non-performing loans to total loans ratio was 1.08% for Q1 2025, slightly up from 1.03% in the previous quarter[28]. Equity and Book Value - Book value per common share increased to $38.51, up from $37.65 at December 31, 2024, reflecting continued growth[6]. - Total stockholders' equity increased to $2,897,582,000 as of March 31, 2025, up from $2,814,318,000 at December 31, 2024, representing a growth of 2.4%[32]. - Tangible book value per common share increased to $37.48 as of March 31, 2025, compared to $36.61 at December 31, 2024, showing a rise of 2.4%[32]. - Common shares issued and outstanding grew to 75,242,048 as of March 31, 2025, from 74,748,370 at December 31, 2024, marking an increase of 0.7%[32]. Other Financial Metrics - The average cost of total deposits declined by 0.14% to 2.58% for the quarter ended March 31, 2025[4]. - Total assets decreased to $34,831,997 thousand as of March 31, 2025, down from $35,241,742 thousand at December 31, 2024, representing a decline of approximately 1.16%[19]. - Total liabilities decreased to $31,934,415 thousand as of March 31, 2025, from $32,427,424 thousand at December 31, 2024, a decline of approximately 1.53%[19]. - Return on average assets for Q1 2025 was 0.68%, compared to 0.78% in the previous quarter, indicating a decline of 12.8%[28]. - Return on average stockholders' equity for Q1 2025 was 8.2%, down from 9.7% in Q4 2024[28].

BankUnited, Inc. (BKU) shares soared 9.8% in the last trading session to close at $32.37. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.2% loss over the past four weeks.The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.This company is expected to post quarterly earnings of $0.74 per share in its upcom ...