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%, up from 2.93% in Q2 2025 and 2.78% in Q3 2024, achieving the near-term target.

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

• Expenses remained well controlled, and credit quality metrics were stable, though some deterioration was noted in CRE.

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

Financial highlights

• Net interest income for Q3 2025 was $250.1 million, up $4 million sequentially and $15.7 million year-over-year.

• 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 for Q3 2025 was $25.6 million, up from $22.9 million in Q3 2024; non-interest expense was $166.2 million, up slightly year-over-year.

• Book value and tangible book value per share increased to $40.30 and $39.27, respectively, at September 30, 2025.

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

Outlook and guidance

• Management expects margin to remain flat in Q4 and continues to focus on margin expansion, capital strength, and deposit growth.

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

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

• Guidance assumes two additional rate cuts in 2025; more detailed 2026 guidance in January.

• Down rate cycle beta of 89% on non-maturity interest-bearing deposits.