BankUnited (BKU) Q4 2025 earnings summary

Executive summary

• Achieved double-digit EPS, earnings, and PP&R growth for the year, with margin expansion of 22 basis points year-over-year.

• Fourth quarter net income was $69.3 million ($0.90 per share); adjusted EPS was $0.94, beating consensus, with full-year net income of $268 million ($3.53 per share), up 15% year-over-year.

• Organic growth strategy and operational discipline led to improved profitability and capital returns, including a $0.02 dividend increase and $200 million additional share repurchase authorization.

• Strong deposit and loan growth, with NIDDA up $485 million in Q4 and $1.5 billion for the year; core loans grew by $769 million in Q4.

• Board authorized an additional $200 million share buyback and increased dividends by $0.02, raising the quarterly dividend to $0.33 per share.

Financial highlights

• Net income for Q4 was $69 million ($0.90 per share); adjusted for a software write-down, net income was $72 million ($0.94 per share).

• Net interest income for Q4 was $258.2 million, up $19 million year-over-year and $8.1 million sequentially.

• PP&R for Q4 was $115.4 million, up 5% sequentially and 11% year-over-year; full-year PP&R was $429.7 million, up 16%.

• Net interest margin (NIM) expanded to 3.06% in Q4, up 6 basis points sequentially and 22 basis points year-over-year.

• Non-interest income for Q4 was $30 million, up from $25.6 million in the prior quarter; non-interest income grew 28% year-over-year.

Outlook and guidance

• 2026 guidance targets 6% core loan growth, 6% average deposit growth, 8% revenue growth, and 9% net interest income growth; margin expected to improve to 3.20%.

• CET1 capital ratio projected at 11.6% for 2026, with up to $250 million in stock buybacks planned.

• Capital actions, including the new $200 million buyback, are factored into guidance.

• Economic assumptions include two Fed rate cuts and a stable environment.

• Guidance assumes stable economic and rate environment; significant rate changes could impact earnings.