BankUnited, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 21 January 2026: press release. Guidance figures: 1 raised, 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Full-year net income rose 15%: Full-year 2025 net income was $268.4 million, or $3.53 diluted EPS against $3.08 in 2024. Annual ROA was 0.77% against 0.66%. Source
• Fourth-quarter net income and EPS: Quarter net income was $69.3 million, or $0.90 diluted EPS, against $0.95 in the prior quarter and $0.91 in 4Q 2024. Annualized ROA was 0.78%. Source
• Net interest margin rose to 3.06%: Tax-equivalent net interest margin was 3.06%, up 6 basis points from the prior quarter and 22 basis points from 4Q 2024. Full-year margin was 2.95%, up from 2.73%. Source
• Non-interest bearing deposits rose $485 million: Non-interest bearing deposits rose $485 million in the quarter and $1.5 billion, or 20%, for the year. They were 31% of total deposits at December 31, 2025. Source
• Provision rose on two C&I reserves: The provision for credit losses was $25.6 million, up from $11.6 million in the prior quarter. Management attributed it to increased specific reserves on two C&I loans. Source
• CET1 ratio at 12.3%: The CET1 ratio was 12.3%, down 20 basis points from the prior quarter and up 30 basis points from a year earlier. Source

“We are pleased to report strong fourth quarter earnings, concluding an outstanding year for BankUnited.”

Rajinder Singh, Chairman, President and Chief Executive Officer

Guidance

What changed from last quarter

• New: James G. Mackey is listed as Chief Financial Officer. The prior release named him incoming CFO, with Leslie N. Lunak as CFO. Source

Earnings and profit growth

• Full-year net income rose 15%: Full-year 2025 net income was $268.4 million, or $3.53 diluted EPS against $3.08 in 2024. Annual ROA was 0.77% against 0.66%. Source
• Fourth-quarter net income and EPS: Quarter net income was $69.3 million, or $0.90 diluted EPS, against $0.95 in the prior quarter and $0.91 in 4Q 2024. Annualized ROA was 0.78%. Source
• Adjusted result excludes one-time item: Excluding the one-time item, adjusted net income was $72.0 million, adjusted diluted EPS $0.94 and adjusted ROA 0.81%. Source
• PPNR rose 5% sequentially: Pre-provision net revenue was $115.4 million, up 5% from the prior quarter and 11% from 4Q 2024. Full-year PPNR was $429.7 million, up 16%. Source

Net interest margin and deposit costs

• Net interest margin rose to 3.06%: Tax-equivalent net interest margin was 3.06%, up 6 basis points from the prior quarter and 22 basis points from 4Q 2024. Full-year margin was 2.95%, up from 2.73%. Source
• Net interest income rose $8.1 million: Net interest income was $258.2 million, up $8.1 million from the prior quarter and $19.0 million, or 8%, from 4Q 2024. Full-year net interest income rose $73.3 million, or 8%. Source
• Interest-bearing deposit rate fell: The average rate on interest-bearing deposits fell to 3.15% from 3.40%. Management tied this to deposit pricing cuts after a lower Federal funds rate and term deposit repricing. FHLB advances averaged 3.84%. Source
• Average deposit cost fell to 2.18%: Average cost of deposits declined 0.20% to 2.18%. Spot APY fell to 2.10% from 2.31% in the prior quarter. Source

“We continue to execute our organic growth strategy which has resulted in strong performance in NIM, ROA, ROE and EPS.”

Rajinder Singh, Chairman, President and Chief Executive Officer

Deposits and funding

• Non-interest bearing deposits rose $485 million: Non-interest bearing deposits rose $485 million in the quarter and $1.5 billion, or 20%, for the year. They were 31% of total deposits at December 31, 2025. Source
• Total deposits rose $735 million: Total deposits grew $735 million in the quarter and $1.5 billion for the year. Non-brokered deposits rose $376 million in the quarter and $1.8 billion for the year. Source
• Wholesale funding fell $166 million: Wholesale funding was reduced by $166 million in the quarter and $1.7 billion for the year. FHLB advances were $1,555,000 thousand at December 31, 2025, against $2,080,000 thousand at September 30, 2025. Source

Loans and portfolio mix

• Total loans rose $571 million: Total loans were $24.27 billion, up $571 million in the quarter. The loan-to-deposit ratio was 82.7%, stable on the prior quarter. Source
• Core loans rose $769 million: Core loans, comprising CRE, C&I and mortgage warehouse lending, grew $769 million in the quarter. C&I contributed the largest dollar increase. Source
• Residential and other loans declined: Residential and other loans fell $198 million, which the company described as consistent with its balance sheet strategy. Franchise, equipment and municipal finance also declined. Source

Credit quality and reserves

• Criticized and classified loans declined: Criticized and classified loans fell $27 million in the quarter and $185 million from 4Q 2024. Source
• Non-performing assets ratio at 1.08%: Non-performing assets were 1.08% of total assets, including 0.11% from the guaranteed portion of SBA loans, down from 1.10%. Non-performing loans were 1.54% of total loans, down from 1.60%. Source
• Provision rose on two C&I reserves: The provision for credit losses was $25.6 million, up from $11.6 million in the prior quarter. Management attributed it to increased specific reserves on two C&I loans. Source
• Allowance covers 58.99% of non-performing loans: The allowance for credit losses was 0.91% of total loans, 1.30% of commercial loans, 2.03% of CRE office loans and 58.99% of non-performing loans. Source

Non-interest income and expenses

• Non-interest income rose to $30.0 million: Non-interest income was $30.0 million, against $25.6 million in the prior quarter. Capital markets revenue was $9.5 million, against $6.1 million in the prior quarter. Full-year non-interest income was $105.6 million. Source
• Non-interest expense rose to $172.8 million: Non-interest expense was $172.8 million, against $166.2 million in the prior quarter and $160.5 million in 4Q 2024. Full-year non-interest expense was $663.5 million. Source
• Compensation tied to investment in people: Higher compensation expense reflects investment in people for commercial business growth, regular merit increases, and variable compensation partly tied to the higher share price. Source

Capital and shareholder returns

• CET1 ratio at 12.3%: The CET1 ratio was 12.3%, down 20 basis points from the prior quarter and up 30 basis points from a year earlier. Source
• Tangible book value per share $40.14: AOCI improved $15.6 million from the prior quarter and $94.9 million from a year ago. The tangible common equity ratio was 8.5%, and tangible book value per share was $40.14, up 10% year over year. Source
• Quarter buybacks of $44.8 million: About 1.1 million shares were repurchased in the quarter for $44.8 million, at an average price of $41.08. Source

Figures management reported

Risks management discussed

• Financial: Q4 charge-offs related mainly to four C&I loans in unrelated industries and geographies. Full-year net charge-offs were 0.30% of average loans. Source
• Financial: Non-performing loans were down $7 million from the prior quarter but up $122 million from 4Q 2024. Source
• Demand: Management noted that the fourth quarter is typically seasonally slow for deposit flows. Source
• Operational: A $3.8 million write-down of previously capitalized software is included in quarter expense and treated as a one-time item in adjusted results. Source
• External: Lower market rates reduce yields on the predominantly floating-rate commercial loan book, which lowered loan yields in the quarter. Source

Earlier plans management reported on

• Not stated: Management ties the residential loan reduction to its balance sheet strategy. No timing or target is stated. Source
• Not stated: Management said it continues to expand NIM alongside core loan growth. No numeric target is given. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 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.