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BKU

BankUnited Q1 2026 Net Income Rises to $61.9 Million

BankUnited reported first-quarter 2026 net income of $61.9 million, up from $58.5 million a year earlier but down from $69.3 million in the fourth quarter of 2025. Diluted earnings per share were $0.83, compared with $0.78 in the year-ago quarter and $0.90 in the prior quarter.

Pre-provision net revenue was $106.3 million, versus $95.2 million in the first quarter of 2025 and $115.4 million in the fourth quarter. Net interest income came in at $9.2 million lower than the prior quarter, but $15.8 million higher than a year ago. Net interest margin was 2.99%, down 7 basis points from the fourth quarter, but up 18 basis points from the first quarter of 2025.

Total deposits excluding brokered deposits rose by $1.4 billion from a year ago and by $277 million from the prior quarter. Noninterest-bearing deposits were up $875 million year over year, though they fell $166 million sequentially. They represented 30% of total deposits at March 31.

Loans were little changed overall in the quarter at $24.13 billion, down $139 million from December 31 but up $145 million from a year earlier. Core loans rose $9 million sequentially and $906 million year over year. Within the portfolio, commercial and industrial loans fell $144 million from the prior quarter to $6.86 billion, residential loans declined $127 million to $6.86 billion, while non-owner occupied commercial real estate increased $41 million to $6.15 billion and mortgage warehouse lending rose $77 million to $805 million.

Credit quality improved from the prior quarter. Criticized and classified loans fell $146 million, or 12%, to $560.9 million. Non-performing loans dropped $98 million, or 26%, to $278.8 million. The non-performing asset ratio fell to 0.79% from 1.08%. The allowance for credit losses declined to $208.8 million from $219.8 million, while coverage of non-performing loans increased to 75.90% from 58.99%.

Noninterest income was $24.7 million, down from $30.0 million in the fourth quarter but up from $22.3 million a year earlier. Noninterest expense was $167.4 million, down from $172.8 million sequentially and up from $160.2 million year over year.

BankUnited ended the quarter with total assets of $35.4 billion. The CET1 ratio was 12.2%, down 10 basis points from the prior quarter. Tangible common equity was 8.3%, and tangible book value per share was $40.05, up 7% from a year earlier.

The company repurchased about 1.3 million shares for $60.0 million during the quarter at an average price of $46.15. It also raised its common dividend to $0.33 per share from $0.31, a 6% increase. Following these announcements, the company's shares moved -0.73%, and are now trading at a price of $45.02. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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