BankUnited (BKU) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $71.9 million ($0.95 per diluted share), up from $61.5 million ($0.81) in Q3 2024 and $68.8 million ($0.91) in Q2 2025, with annualized ROA of 0.82% and ROE of 9.5%.

• Net interest margin reached 3.00%, achieving the near-term target, and net interest income grew 7% year-over-year.

• Tangible book value per share increased 8% year-over-year to $39.27.

• Opened new commercial banking offices in Morristown, NJ and Charlotte, NC.

• Optimism prevails for near-term business environment, with strong pipelines in commercial and real estate segments.

Financial highlights

• Net interest income for Q3 2025 was $250.1 million, up from $246.1 million in Q2 2025 and $234.1 million in Q3 2024.

• Provision for credit losses was $11.6 million, down from $15.7 million in Q2 2025 but up from $9.2 million in Q3 2024; ACL to total loans was 0.93%.

• Non-interest income totaled $25.6 million, and non-interest expense was $166.2 million for the quarter.

• Loans to deposits ratio was 82.8% at quarter-end, down from 83.6% in Q2 2025.

• Book value and tangible book value per share increased to $40.30 and $39.27, respectively, at September 30, 2025, up 8% year-over-year.

Outlook and guidance

• Management continues to focus on balance sheet transformation, improving funding profile and asset mix, and expects further declines in non-core portfolios.

• Margin expected to remain flat in Q4; double-digit NIDDA growth for the year is on track.

• Total loans likely flat year-over-year; core C&I loans expected to show low single-digit growth.

• Securities portfolio anticipated to decline in Q4 but remain up slightly year-over-year.

• Guidance assumes two rate cuts in 2025.