BankUnited (BKU) Reports Strong Financial Results

By Chris Stiles • Wednesday, January 21 10:53 • Permanent Link

BankUnited, Inc. has reported strong financial results for the fourth quarter and full year ended December 31, 2025. The company's net income for the fourth quarter was $69.3 million, with a diluted EPS of $0.90, reflecting a 6 basis point net interest margin (NIM) expansion, $485 million growth in non-interest bearing deposits, and $769 million growth in core loans. For the full year 2025, the net income was $268.4 million, with a diluted EPS of $3.53, marking a 15% increase from the prior year.

The net interest margin (NIM) was reported at 3.06% for the quarter, up 0.06% from the prior quarter and 0.22% from the fourth quarter of 2024. The net interest income increased by $8.1 million from the prior quarter and $19.0 million, or 8% from the fourth quarter of 2024. For the full year, the net interest margin was 2.95%, up 0.22% from 2024.

Non-interest bearing deposits (NIDDA) experienced robust growth, increasing by $485 million from the prior quarter and $1.5 billion for the year, representing 31% of total deposits at December 31, 2025. Total deposits grew by $735 million in the fourth quarter and $1.5 billion for the year.

Total loans increased by $571 million in the fourth quarter, with core loans (CRE, C&I, and MWL) up by $769 million. However, residential and other loans decreased by $198 million, consistent with the balance sheet strategy. The loan-to-deposit ratio remained stable at 82.7%.

The provision for credit losses for the fourth quarter was $25.6 million, driven by increased specific reserves related to two C&I loans. The allowance for credit losses (ACL) coverage was reported at 0.91% of total loans, with a tangible common equity ratio of 8.5%, representing a 10% year-over-year growth in tangible book value per share.

BankUnited also announced an increase of $0.02 per share in the company's common stock dividend for future quarterly dividends, to $0.33 per common share, a 6% increase from the previous level of $0.31 per share, and authorized the repurchase of up to an additional $200 million in shares of the company's outstanding common stock.

Following these announcements, the company's shares moved 0.83%, and are now trading at a price of $47.08. Check out the company's full 8-K submission here.

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