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BankUnited (BKU) Up 8.7% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for BankUnited, Inc. (BKU - Free Report) . Shares have added about 8.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is BankUnited due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for BankUnited, Inc. before we dive into how investors and analysts have reacted as of late.
BankUnited's Q3 Earnings Beat on Higher Revenues, Provisions Up
BankUnited’s third-quarter 2025 earnings of 95 cents per share surpassed the Zacks Consensus Estimate of 84 cents. The bottom line also compared favorably with 81 cents in the prior-year quarter.
Results benefited from growth in net interest income (NII) and non-interest income. However, higher expenses and provisions alongside a fall in loan and deposit balances were the undermining factors.
Net income totaled $71.9 million, up 16.9% from the year-ago quarter. Our estimate for the metric was $60.1 million.
Revenues Rise, Expenses Up
Quarterly net revenues were $275.7 million, up 7.3% year over year. However, the top line missed the Zacks Consensus Estimate of $279.8 million.
NII was $250.1 million, up 6.8%. Net interest margin (NIM) expanded 22 basis points (bps) to 3%. Our estimates for NII and NIM were $250.4 million and 3.03%, respectively.
Non-interest income of $25.6 million rose 11.7%. The increase was mainly driven by a rise in deposit service charges and fees and other non-interest income. We had projected a non-interest income of $25.7 million.
Non-interest expenses rose 1% to $166.2 million. The rise was due to higher employee compensation and benefits costs, technology costs and other non-interest expenses, partially offset by lower depreciation of operating lease equipment costs, deposit insurance expense and occupancy and equipment costs. Our estimate for non-interest expenses was $173 million.
As of Sept. 30, 2025, total loans were $23.7 billion, down 1% from the prior quarter. Total deposits amounted to $28.6 billion, down marginally. Our estimates for total loans and total deposits were $24.5 billion and $28.9 billion, respectively.
Credit Quality Deteriorates
In the reported quarter, BankUnited recorded a provision of credit losses of $11.6 million, up 25.2% from the prior-year quarter. We had expected the metric to be $21.1 million.
As of Sept. 30, 2025, the ratio of net charge-offs to average loans was 0.26%, up 10 bps year over year. Also, the non-performing assets ratio was 1.10%, up 37 bps.
Capital & Profitability Ratios Improve
As of Sept. 30, 2025, the Common Equity Tier 1 risk-based capital ratio was 12.5%, up from 11.8%. The total risk-based capital ratio was 14.4%, increasing from 13.9% as of Sept. 30, 2024.
At the end of the third quarter, the return on average assets was 0.82%, up from 0.62% in the year-earlier quarter. Return on average stockholders’ equity was 9.5%, rising from 8.1%.
2025 Outlook
Management projects total deposits to grow in mid-single digits, with non-interest-bearing demand deposits to rise in double digits.
Management anticipates NII growth to be slightly better than a mid-to-high single-digit range. NIM is expected to touch roughly 3%, with the fourth-quarter number being flattish sequentially.
Management expects the loan balance to be relatively stable, with commercial and industrial (C&I) and CRE loans projected to rise in the mid-single-digit range. This will be offset by the continued run-off of the residential loan portfolio.
Non-interest expenses are expected to increase in the mid-single-digits range, probably closer to 3%.
Provisions are expected to be slightly higher than the 2024 level.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, BankUnited has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
BankUnited has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
BankUnited is part of the Zacks Banks - Major Regional industry. Over the past month, Truist Financial Corporation (TFC - Free Report) , a stock from the same industry, has gained 1.8%. The company reported its results for the quarter ended September 2025 more than a month ago.
Truist Financial reported revenues of $5.19 billion in the last reported quarter, representing a year-over-year change of +2%. EPS of $1.04 for the same period compares with $0.97 a year ago.
For the current quarter, Truist Financial is expected to post earnings of $1.09 per share, indicating a change of +19.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.4% over the last 30 days.
Truist Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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BankUnited (BKU) Up 8.7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for BankUnited, Inc. (BKU - Free Report) . Shares have added about 8.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is BankUnited due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for BankUnited, Inc. before we dive into how investors and analysts have reacted as of late.
BankUnited's Q3 Earnings Beat on Higher Revenues, Provisions Up
BankUnited’s third-quarter 2025 earnings of 95 cents per share surpassed the Zacks Consensus Estimate of 84 cents. The bottom line also compared favorably with 81 cents in the prior-year quarter.
Results benefited from growth in net interest income (NII) and non-interest income. However, higher expenses and provisions alongside a fall in loan and deposit balances were the undermining factors.
Net income totaled $71.9 million, up 16.9% from the year-ago quarter. Our estimate for the metric was $60.1 million.
Revenues Rise, Expenses Up
Quarterly net revenues were $275.7 million, up 7.3% year over year. However, the top line missed the Zacks Consensus Estimate of $279.8 million.
NII was $250.1 million, up 6.8%. Net interest margin (NIM) expanded 22 basis points (bps) to 3%. Our estimates for NII and NIM were $250.4 million and 3.03%, respectively.
Non-interest income of $25.6 million rose 11.7%. The increase was mainly driven by a rise in deposit service charges and fees and other non-interest income. We had projected a non-interest income of $25.7 million.
Non-interest expenses rose 1% to $166.2 million. The rise was due to higher employee compensation and benefits costs, technology costs and other non-interest expenses, partially offset by lower depreciation of operating lease equipment costs, deposit insurance expense and occupancy and equipment costs. Our estimate for non-interest expenses was $173 million.
As of Sept. 30, 2025, total loans were $23.7 billion, down 1% from the prior quarter. Total deposits amounted to $28.6 billion, down marginally. Our estimates for total loans and total deposits were $24.5 billion and $28.9 billion, respectively.
Credit Quality Deteriorates
In the reported quarter, BankUnited recorded a provision of credit losses of $11.6 million, up 25.2% from the prior-year quarter. We had expected the metric to be $21.1 million.
As of Sept. 30, 2025, the ratio of net charge-offs to average loans was 0.26%, up 10 bps year over year. Also, the non-performing assets ratio was 1.10%, up 37 bps.
Capital & Profitability Ratios Improve
As of Sept. 30, 2025, the Common Equity Tier 1 risk-based capital ratio was 12.5%, up from 11.8%. The total risk-based capital ratio was 14.4%, increasing from 13.9% as of Sept. 30, 2024.
At the end of the third quarter, the return on average assets was 0.82%, up from 0.62% in the year-earlier quarter. Return on average stockholders’ equity was 9.5%, rising from 8.1%.
2025 Outlook
Management projects total deposits to grow in mid-single digits, with non-interest-bearing demand deposits to rise in double digits.
Management anticipates NII growth to be slightly better than a mid-to-high single-digit range. NIM is expected to touch roughly 3%, with the fourth-quarter number being flattish sequentially.
Management expects the loan balance to be relatively stable, with commercial and industrial (C&I) and CRE loans projected to rise in the mid-single-digit range. This will be offset by the continued run-off of the residential loan portfolio.
Non-interest expenses are expected to increase in the mid-single-digits range, probably closer to 3%.
Provisions are expected to be slightly higher than the 2024 level.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, BankUnited has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
BankUnited has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
BankUnited is part of the Zacks Banks - Major Regional industry. Over the past month, Truist Financial Corporation (TFC - Free Report) , a stock from the same industry, has gained 1.8%. The company reported its results for the quarter ended September 2025 more than a month ago.
Truist Financial reported revenues of $5.19 billion in the last reported quarter, representing a year-over-year change of +2%. EPS of $1.04 for the same period compares with $0.97 a year ago.
For the current quarter, Truist Financial is expected to post earnings of $1.09 per share, indicating a change of +19.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.4% over the last 30 days.
Truist Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.