BankUnited, Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 22 October 2025: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and EPS rose: Net income was $71.9 million, or $0.95 per diluted share, against $68.8 million, or $0.91, in the prior quarter and $61.5 million, or $0.81, a year earlier. Source
• Net interest income up 7% year on year: Net interest income was $250.1 million, up $4.0 million from the prior quarter and up $16.0 million, or 7%, from a year earlier. Source
• Net interest margin reached 3.00%: Tax-equivalent margin rose 0.07 points from the prior quarter and was up from 2.78% a year earlier. Source
• Deposit cost fell to 2.38%: Average cost of total deposits fell 0.09 points, reflecting maturing higher-rate term deposits, lower deposit pricing and smaller average brokered deposits. Interest-bearing deposit rate fell to 3.40%. Source
• Provision eased to $11.6 million: Provision for credit losses was $11.6 million, down from $15.7 million. Management cited an improved economic forecast, offset by qualitative factors and specific reserves. Source
• Criticized loans eased, non-accruals rose: Criticized and classified loans fell $3 million while non-accrual loans rose $3 million. The NPA ratio was 1.10%, including 0.11% from the guaranteed portion of non-accrual SBA loans. Source
• CET1 ratio at 12.5%: Consolidated CET1 was 12.5%, up from 12.2% at June 30, 2025. Pro-forma CET1 including accumulated other comprehensive income was 11.7%, up from 11.3% a quarter earlier. Source

“We continued to deliver on improved profitability this quarter, with gains in EPS, ROA and ROE.”

Rajinder Singh, Chairman, President and Chief Executive Officer

What changed from last quarter

• New: Management names James G. Mackey as incoming Chief Financial Officer, in the call participant list. Source
• Ended: Senior notes due November 2025 were redeemed in August 2025 at par value plus accrued interest. Source

Results and growth drivers

• Net income and EPS rose: Net income was $71.9 million, or $0.95 per diluted share, against $68.8 million, or $0.91, in the prior quarter and $61.5 million, or $0.81, a year earlier. Source
• Nine-month diluted EPS up 21%: Nine-month net income was $199.1 million, or $2.63 per diluted share, compared with $2.17 a year earlier, a 21% increase in diluted EPS. Source
• Net interest income up 7% year on year: Net interest income was $250.1 million, up $4.0 million from the prior quarter and up $16.0 million, or 7%, from a year earlier. Source
• Total assets slightly lower: Total assets were $35.1 billion, down from $35.5 billion at June 30, 2025. Operations span Florida, New York, Dallas, Atlanta, Morristown and Charlotte. Source

Margins and deposit pricing

• Net interest margin reached 3.00%: Tax-equivalent margin rose 0.07 points from the prior quarter and was up from 2.78% a year earlier. Source
• Funding mix supported the margin: Average NIDDA rose $210 million while average interest-bearing liabilities fell $526 million, which management cited as a factor in the margin gain. Source
• Deposit cost fell to 2.38%: Average cost of total deposits fell 0.09 points, reflecting maturing higher-rate term deposits, lower deposit pricing and smaller average brokered deposits. Interest-bearing deposit rate fell to 3.40%. Source
• Deposits flat, NIDDA down seasonally: Total deposits were essentially flat at $28,618,287 thousand. NIDDA fell seasonally to 30% of deposits and was up $990 million from a year earlier. Source
• FHLB advance rate rose: The FHLB advance rate rose to 3.94% from 3.79%, partly offset by the redemption of higher-cost senior debt, which management said also helped cost of funds. Source
• Asset yield held at 5.38%: Yield on interest earning assets was unchanged. Loan yield eased slightly while securities yield rose to 5.13% from 5.06% on coupon resets. Source

“We achieved our near-term target of a 3% margin as well.”

Rajinder Singh, Chairman, President and Chief Executive Officer

Loan book and segments

• Total loans declined $231 million: Loans totaled $23,702,494 thousand. Residential, franchise, equipment and municipal portfolios fell $245 million, while core commercial and mortgage warehouse grew $14 million combined. Source
• CRE up, C&I down: Core C&I and CRE segments fell a net $69 million. CRE grew $61 million while C&I declined $130 million, and mortgage warehouse lending grew $83 million. Source
• Residential runoff tied to strategy: Residential loans fell $173 million, which management described as consistent with its balance sheet strategy. Source
• CRE concentration versus peers: CRE was 28% of loans and 185% of total risk-based capital. Management compared this with call-report medians of 34% and 225% for banks with $10 to $100 billion in assets. Source

Asset quality and credit

• Provision eased to $11.6 million: Provision for credit losses was $11.6 million, down from $15.7 million. Management cited an improved economic forecast, offset by qualitative factors and specific reserves. Source
• Specific reserves tied to two loans: Most of the increase in specific reserves related to one C&I loan and one CRE office loan. Net charge-offs were $14.7 million in the quarter. Source
• Criticized loans eased, non-accruals rose: Criticized and classified loans fell $3 million while non-accrual loans rose $3 million. The NPA ratio was 1.10%, including 0.11% from the guaranteed portion of non-accrual SBA loans. Source
• Reserve coverage held steady: ACL to total loans was 0.93%, unchanged from the prior quarter, and ACL to non-performing loans was 57.95%. The commercial ACL ratio was 1.35%. Source
• Office loans carry higher LTV: CRE office weighted LTV was 65.0% and DSCR 1.57, with 61% of office collateral in Florida, mostly suburban. The ACL to CRE office loans was 2.21%. Source
• Nine-month charge-offs at 0.26%: Annualized net charge-offs were 0.26% for the nine months and 0.27% for the trailing twelve months. Source

“Our capital position is robust. At September 30, 2025, CET1 was 12.5% at a consolidated level.”

BankUnited, Inc., press release

Operating costs and fees

• Non-interest expense edged up: Total non-interest expense was $166,169 thousand, up from $164,327 thousand in the prior quarter. Employee compensation and benefits were $85,196 thousand, up from $83,153 thousand. Source
• Technology and lease depreciation moved: Technology expense was $21,630 thousand, down from $23,492 thousand. Depreciation of operating lease equipment rose to $4,423 thousand from $3,869 thousand. Source
• Non-interest income fell: Total non-interest income was $25,566 thousand, down from $27,810 thousand. Other non-interest income was $16,027 thousand, and lease financing income was $4,152 thousand. Source
• Income tax expense rose: Provision for income taxes was $26,081 thousand, up from $25,138 thousand, on income before taxes of $97,932 thousand. Source

Capital and shareholder returns

• CET1 ratio at 12.5%: Consolidated CET1 was 12.5%, up from 12.2% at June 30, 2025. Pro-forma CET1 including accumulated other comprehensive income was 11.7%, up from 11.3% a quarter earlier. Source
• Tangible equity ratio rose: Tangible common equity to tangible assets rose to 8.4% from 8.1% at June 30, 2025. Source
• Book value per share rose: Book value per common share was $40.30 and tangible book value per share was $39.27, up from $39.26 and $38.23 at June 30, 2025. Source
• Prior release buyback authorization: The prior release said the board authorized repurchases of up to $100 million of common stock on July 22, 2025. This release does not mention repurchases.

Call participants and spokesperson

• Four executives on the call: Singh, Lunak, Cornish and incoming CFO Mackey are listed as call participants, with Singh as Chairman, President and CEO. Source
• Chief Operating Officer listed again: Thomas M. Cornish is listed as Chief Operating Officer on both the prior and current call notices.
• Singh named as quoted speaker: Rajinder Singh, Chairman, President and Chief Executive Officer, is the release's quoted speaker on results. Source

Figures management reported

Risks management discussed

• Demand: Deposit balances in title solutions and government banking move seasonally, and management tied the quarter's decline to that pattern. Source
• Financial: One CRE office loan contributed to the quarter's specific reserves and charge-offs. Office exposure carries a higher LTV than the total CRE book. Source
• Financial: Expiring cash flow hedges pushed up the FHLB advance rate, which management named as the cause. Source
• External: Management tied lower deposit pricing to a lower Federal funds rate, and securities yields reset during periods of rate volatility. Source

Earlier plans management reported on

• Met: Management said the near-term 3% margin target was reached this quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.