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1. Company Snapshot

1.a. Company Description

BankUnited, Inc.operates as the bank holding company for BankUnited, a national banking association that provides a range of banking services in the United States.The company offers deposit products, such as checking, money market deposit, and savings accounts; certificates of deposit; and treasury, commercial payment, and cash management services.


Its loans portfolio includes commercial loans, including equipment loans, secured and unsecured lines of credit, formula-based loans, owner-occupied commercial real estate term loans and lines of credit, mortgage warehouse lines, letters of credit, commercial credit cards, small business administration and U.S. department of agriculture product offerings, export-import bank financing products, trade finance, and business acquisition finance credit facilities; commercial real estate loans; residential mortgages; and other consumer loans.The company also offers online, mobile, and telephone banking services.As of December 31, 2021, it operated through a network of 63 banking centers located in 13 Florida counties; and 4 banking centers in the New York metropolitan area.


The company was formerly known as BU Financial Corporation.BankUnited, Inc.was incorporated in 2009 and is headquartered in Miami Lakes, Florida.

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1.b. Last Insights on BKU

BankUnited's recent performance was positively driven by its Q3 earnings beat, fueled by higher net interest income (NII) and non-interest income. The company's quarterly earnings of $0.95 per share surpassed estimates, reflecting a strong deposit franchise and improving net interest margin. Institutional investors, such as Commonwealth of Pennsylvania Public School Empls Retrmt SYS, have increased their holdings, demonstrating confidence in the company. Additionally, the appointment of James G. Mackey as CFO may bring new strategic insights. (Source: BankUnited, Inc. Q3 2025 Earnings Call Transcript)

1.c. Company Highlights

2. BankUnited's Q3 2025 Earnings: Solid Performance and Strategic Growth

BankUnited's third-quarter 2025 earnings report highlighted a robust financial performance, with net income reaching $71.9 million, or $0.95 per share, exceeding analyst estimates of $0.84. Net interest income increased by $4 million, and the net interest margin (NIM) expanded by 7 basis points to 3%. The return on assets (ROA) was 82 basis points, and the return on equity (ROE) was 9.5%. The company's financial performance was characterized by controlled expenses and stable credit quality.

Publication Date: Oct -23

📋 Highlights
  • Earnings & Efficiency:: Q3 2025 net income $71.9M ($0.95/share), ROA 82bps, ROE 9.5%, NIM up 7bps to 3%, and EPS growth driven by margin expansion.
  • Capital Strength:: CET1 ratio at 12.5%, tangible book value $39.27/share, and capital accretion with $26M NDFI loan in office concentration.
  • Loan Portfolio:: CRE at 28% of loans (185% risk-based capital), WALT 55%, DSCR 1.77, with $41M decline in criticized CRE loans and 28% loan growth target.
  • Fee Income Growth:: Core fee income up 20% from lending, syndication, and derivatives, with 100% operating leverage expectation and no reliance on wealth management.
  • Balance Sheet & Strategy:: $28M deposit decline offset by CRE/mortgage warehouse growth, $14.7M net charge-offs (26bps), and 6% stock discount with opportunistic buybacks via 10b5-1 plan.

Financial Highlights

The company's key financial metrics demonstrated a positive trend, with earnings, ROA, EPS, ROE, and margin all up. Deposits were relatively flat, decreasing by $28 million, while loans grew modestly, driven by commercial real estate (CRE) and mortgage warehouse lending, which offset declines in commercial and industrial (C&I) loans. The company's capital position remains strong, with a tangible capital book value per share of $39.27 and a CET1 ratio of 12.5%.

Loan Portfolio and Credit Quality

The CRE portfolio, which accounts for 28% of loans, has a weighted average loan-to-value (LTV) ratio of 55% and debt service coverage of 1.77. The office exposure declined by 7%, and criticized and classified CRE loans decreased by $41 million. The allowance for credit losses (ACL) to loans ratio remained consistent at 93 basis points. Net charge-offs were $14.7 million, resulting in a net charge-off rate of 26 basis points.

Valuation and Dividend Yield

BankUnited is currently trading at a price-to-tangible book value (P/TBV) ratio of approximately 0.94, implying a 6% discount. The dividend yield stands at 3.26%. Given the company's strong capital position and expected growth, the current valuation appears attractive. The company's guidance for the fourth quarter includes expectations for margin to be flat, double-digit NIDDA growth for the year, and total loans to be flat year over year.

Growth Prospects and Strategic Initiatives

The company is optimistic about its long-term prospects for fee income, with core fee income growing by 20%. BankUnited is focusing on building recurring fee income closely tied to its core commercial business. The company's CFO, Leslie N. Lunak, emphasized that the business is not reliant on gain-on-sale type income or wealth management. The company expects to grow its balance sheet in the medium term, with a mix shift continuing, and C&I growth is expected to overtake residential runoff.

Management Transition and Capital Deployment

Leslie N. Lunak is leaving after 13 years, and Jim will take over as CFO. Rajinder P. Singh emphasized that growing the dividend is a priority, with a possible increase early in the year. Share buybacks will be opportunistic, and M&A is not a focus. The company targets a return on equity (ROE) of around 10%, with a net interest margin over 3%. The company's buyback strategy is now more opportunistic, using a 10b5-1 plan, and is trading below tangible book at a 6% discount.

3. NewsRoom

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Fisher Asset Management LLC Acquires 113,974 Shares of BankUnited, Inc. $BKU

Dec -04

Source: defenseworld.net

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BankUnited Hits 52-Week High: How Should You Play the Stock Now?

Dec -03

Source: zacks.com

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Here Are Monday’s Top Wall Street Analyst Research Calls: Archer Aviation, Beta Technologies, Carvana, Chevron, MPLX, Toast, Zscaler and More

Dec -01

Source: 247wallst.com

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BankUnited, Inc. $BKU Shares Acquired by Bayview Asset Management LLC

Dec -01

Source: defenseworld.net

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Commonwealth of Pennsylvania Public School Empls Retrmt SYS Acquires 1,422 Shares of BankUnited, Inc. $BKU

Nov -25

Source: defenseworld.net

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BankUnited Appoints James G. Mackey as Chief Financial Officer

Nov -10

Source: businesswire.com

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Oppenheimer Asset Management Inc. Purchases 4,672 Shares of BankUnited, Inc. $BKU

Nov -02

Source: defenseworld.net

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BKU's Q3 Earnings Beat on Higher NII & Non-Interest Income, Stock Up

Oct -23

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.40%)

6. Segments

Banking and Related Activities

Expected Growth: 5.4%

BankUnited's 5.4% growth in Banking and Related Activities is driven by strategic expansion into new markets, increased commercial lending, and a rise in non-interest income from fee-based services. Additionally, effective cost management and a favorable interest rate environment have contributed to the growth.

7. Detailed Products

Commercial Banking

BankUnited's commercial banking services provide cash management, treasury management, and lending solutions to businesses of all sizes.

Consumer Banking

BankUnited's consumer banking services offer personal checking and savings accounts, credit cards, and personal loans to individuals.

Mortgage Banking

BankUnited's mortgage banking services provide residential and commercial mortgage loans to individuals and businesses.

Treasury Management

BankUnited's treasury management services provide cash management, wire transfer, and account analysis services to businesses.

Private Banking

BankUnited's private banking services offer personalized financial services, including investment management and wealth planning, to high net worth individuals.

Small Business Administration (SBA) Loans

BankUnited's SBA loan services provide financing solutions to small businesses.

8. BankUnited, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

BankUnited, Inc. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

BankUnited, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and customer loyalty make it difficult for customers to negotiate better terms.

Bargaining Power Of Suppliers

BankUnited, Inc. has a strong bargaining position with its suppliers, given its large scale of operations and diversified supplier base. This reduces the bargaining power of suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This makes it difficult for new entrants to compete with established players like BankUnited, Inc.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. BankUnited, Inc. faces intense competition from larger banks and fintech companies, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 79.61%
Debt Cost 7.37%
Equity Weight 20.39%
Equity Cost 10.60%
WACC 8.03%
Leverage 390.39%

11. Quality Control: BankUnited, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Capital City Bank

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Value: 6.4

Growth: 5.9

Quality: 7.8

Yield: 6.0

Momentum: 8.5

Volatility: 8.0

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Franklin Financial

A-Score: 7.0/10

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Quality: 5.8

Yield: 7.0

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TrustCo Bank Corp NY

A-Score: 6.7/10

Value: 5.8

Growth: 4.0

Quality: 7.3

Yield: 8.0

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Parke Bancorp

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Quality: 6.0

Yield: 7.0

Momentum: 6.0

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BankUnited

A-Score: 5.9/10

Value: 6.7

Growth: 5.8

Quality: 4.8

Yield: 6.0

Momentum: 5.5

Volatility: 6.3

1-Year Total Return ->

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Merchants Bank

A-Score: 4.9/10

Value: 8.2

Growth: 6.6

Quality: 5.0

Yield: 2.0

Momentum: 1.5

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

44.47$

Current Price

44.47$

Potential

-0.00%

Expected Cash-Flows