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MIAMI LAKES - On Wedneday, BankUnited Inc. (NYSE:BKU) reported third-quarter earnings that exceeded analyst expectations, but missed revenue forecasts despite showing improved profitability metrics.
The company’s shares fell 3.53% in pre-market trading after the announcement.
The Miami Lakes-based bank posted earnings of $0.95 per share for the quarter ended September 30, 2025, beating the analyst consensus of $0.88. However, revenue came in at $275.68 million, falling short of the $280.21 million analysts had expected. Compared to the same quarter last year, net income increased from $61.5 million to $71.9 million, representing a 17% YoY improvement.
"We continued to deliver on improved profitability this quarter, with gains in EPS, ROA and ROE. We achieved our near-term target of a 3% margin as well," said Rajinder Singh, Chairman, President and Chief Executive Officer.
The bank’s net interest margin expanded to 3.00% for the quarter, up from 2.93% in the previous quarter. Net interest income grew by $4.0 million compared to the prior quarter and by $16.0 million or 7% compared to the same quarter last year.
Total deposits remained essentially flat quarter-over-quarter, declining by just $28 million, while total loans decreased by $231 million. The loan-to-deposit ratio was 82.8% at quarter-end, down from 83.6% at the end of June.
Asset quality metrics showed stability, with the allowance for credit losses to total loans ratio holding steady at 0.93%. The provision for credit losses was $11.6 million for the quarter, down from $15.7 million in the preceding quarter.
"Our capital position is robust," Singh noted, with the CET1 ratio at 12.5% at the consolidated level. Book value per share increased to $40.30 from $39.26 in the previous quarter, representing an 8% YoY increase in tangible book value per share.
Non-interest bearing demand deposits declined by $488 million during the quarter, partly due to expected seasonality in the title solutions vertical, but were up $990 million compared to September 30, 2024.
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