5 Must-Read Analyst Questions From BankUnited’s Q4 Earnings Call

Regional banking company BankUnited reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 9.1% year on year to $291.6 million. Its non-GAAP profit of $0.94 per share was 5.5% above analysts’ consensus estimates.

BankUnited (BKU) Q4 CY2025 Highlights:

• Revenue: $291.6 million vs analyst estimates of $281.9 million (9.1% year-on-year growth, 3.5% beat)
• Adjusted EPS: $0.94 vs analyst estimates of $0.89 (5.5% beat)
• Adjusted Operating Income: $97.09 million vs analyst estimates of $111.1 million (33.3% margin, 12.6% miss)
• Market Capitalization: $3.78 billion

StockStory’s Take

BankUnited’s fourth quarter saw a positive reaction from investors, as results topped expectations and management highlighted broad-based deposit growth and continued margin expansion. CEO Rajinder P. Singh pointed to growth across all business lines—excluding the seasonally weak title business—and noted that non-interest-bearing deposits contributed significantly to the company’s performance. Singh added, “Every business line contributed. It’s pretty even. Small business, middle market, corporate, even CRE, everything brought in deposits.” Management also emphasized ongoing progress in loan growth, particularly in core commercial and small business lending segments, which helped drive the quarter’s strong results.

Looking ahead, BankUnited’s management expects trends from last year to largely continue, with guidance calling for steady loan and deposit growth, expansion in new and existing geographic markets, and ongoing investments in technology and staff. Singh stated that the company remains confident in reaching its target non-interest deposit mix and anticipates “double-digit NIDDA growth” again. CFO Jim Mackie noted that while the economic environment and interest rate outlook remain uncertain, BankUnited’s diversified portfolio and asset-sensitive balance sheet position it to manage rate changes effectively. The company also plans to maintain expense discipline while investing in revenue-producing staff and technology modernization.

Key Insights from Management’s Remarks

Management attributed fourth quarter performance to broad-based deposit inflows, margin expansion from lower funding costs, and strong core loan growth across multiple geographies and asset classes.

• Deposit growth diversification: All major business lines contributed to deposit growth, with no single outlier, according to CEO Singh. The only exception was the title business, which experienced expected seasonal weakness. Management emphasized that both new customer relationships (“new wallets”) and expanded business with existing customers (“expanded wallets”) drove results, supporting a healthy mix of growth sources.

• Margin improvement from funding costs: CFO Jim Mackie highlighted that margin expansion was driven by the cost of deposits declining more rapidly than loan yields, aided by timely pass-through of interest rate changes. BankUnited’s non-interest-bearing deposit mix rose to 31%—up from 27% at the start of the year—helping to offset pressure from tighter loan spreads.

• Core loan growth across geographies: The company reported strong growth in core commercial, commercial real estate (CRE), and small business loans. COO Thomas Cornish credited investments and hiring in new markets like Atlanta, Texas, and North Carolina for a significant portion of the growth. These newer markets displayed higher growth rates due to less runoff compared to mature markets.

• Managed credit quality: Management noted a decline in criticized and classified loans, with non-performing loans also decreasing. Although charge-offs were elevated due to a single fraud-related loss, Singh and Mackie stressed that credit losses remain idiosyncratic and not indicative of broader systemic risk. The allowance for credit losses stayed roughly flat, and management expects non-performing loans to continue declining.

• Capital actions and returns: The board authorized an additional $200 million in share repurchases and increased the dividend by two cents per share. Management described its philosophy as maintaining capital ratios around the peer average, using both buybacks and dividends, while retaining flexibility to fund organic growth should opportunities arise.

Drivers of Future Performance

BankUnited’s guidance anticipates steady growth in loans and deposits, supported by geographic expansion, continued technology investment, and a balanced loan mix.

• Geographic and segment expansion: Management expects core loan and deposit growth to be driven by deeper penetration in newer markets, such as Texas, Atlanta, and North Carolina, where recent investments in staff and office space have already contributed meaningfully. The company plans to continue investing in these regions, leveraging their higher growth potential relative to mature markets like Florida and New York.

• Margin resilience and rate environment: The company projects modest additional margin improvement, with the net interest margin expected to rise slightly, primarily due to maintaining a high proportion of non-interest-bearing deposits and managing funding costs. Management believes that its asset-sensitive balance sheet and hedging strategies will help navigate any fluctuations in interest rates, though tighter spreads and competitive loan pricing may limit upside.

• Expense discipline and technology focus: BankUnited intends to keep non-interest expense growth in check, with a focus on operational efficiency. Mackie highlighted ongoing investments in technology modernization—including payments systems and AI-driven workflows—as well as continued hiring of revenue-producing staff to support growth, all funded through disciplined expense management.

Catalysts in Upcoming Quarters

In the coming quarters, StockStory analysts will monitor (1) progress toward achieving the target non-interest-bearing deposit mix, (2) execution of core loan growth across both mature and newer geographic markets, and (3) the impact of technology investments on operational efficiency. We will also watch for signs of margin resilience amid competitive pressures and further updates on capital deployment, including the pace of share repurchases.

BankUnited currently trades at $51.10, up from $46.39 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

What Happened?

Shares of regional banking company BankUnited jumped 8.8% in the afternoon session after the company reported fourth-quarter 2025 earnings that surpassed Wall Street's expectations. 

The bank posted adjusted earnings per share of $0.94, beating the consensus estimate of $0.89, while its revenue of $288.2 million also came in ahead of forecasts. The positive results were driven by better-than-expected net interest income and an expansion in its net interest margin, a key measure of bank profitability that reflects the difference between interest earned on loans and what it pays on deposits. These figures suggested improved profitability in its core lending operations, providing a positive signal to investors.

What Is The Market Telling Us

BankUnited’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock gained 3.1% on the news that Raymond James initiated coverage on the stock with an 'Outperform' rating and a $51 price target. This new rating suggested that the investment firm believed BankUnited's stock would likely perform better than the overall market. The price target of $51 also indicated potential upside from its previous trading levels. Following the positive analyst coverage, the company's shares reached a new 52-week high, reflecting strong investor confidence spurred by the new rating.

BankUnited is up 13.3% since the beginning of the year, and at $50.72 per share, has set a new 52-week high. Investors who bought $1,000 worth of BankUnited’s shares 5 years ago would now be looking at an investment worth $1,381.

Regional banking company BankUnited beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 7.8% year on year to $288.2 million. Its non-GAAP profit of $0.94 per share was 5.5% above analysts’ consensus estimates.

BankUnited (BKU) Q4 CY2025 Highlights:

• Net Interest Income: $258.2 million vs analyst estimates of $253.9 million (7.9% year-on-year growth, 1.7% beat)
• Net Interest Margin: 3.1% vs analyst estimates of 3% (5.7 basis point beat)
• Revenue: $288.2 million vs analyst estimates of $281.9 million (7.8% year-on-year growth, 2.2% beat)
• Adjusted EPS: $0.94 vs analyst estimates of $0.89 (5.5% beat)
• Tangible Book Value per Share: $40.14 vs analyst estimates of $40.03 (9.6% year-on-year growth, in line)
• Market Capitalization: $3.49 billion

Company Overview

Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.

Sales Growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Over the last five years, BankUnited grew its revenue at a sluggish 4.5% compounded annual growth rate. This was below our standard for the banking sector and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. BankUnited’s annualized revenue growth of 5.4% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.

This quarter, BankUnited reported year-on-year revenue growth of 7.8%, and its $288.2 million of revenue exceeded Wall Street’s estimates by 2.2%.

Net interest income made up 88.4% of the company’s total revenue during the last five years, meaning BankUnited barely relies on non-interest income to drive its overall growth.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

BankUnited’s TBVPS grew at a decent 5.2% annual clip over the last five years. TBVPS growth has accelerated recently, growing by 9.3% annually over the last two years from $33.62 to $40.14 per share.

Over the next 12 months, Consensus estimates call for BankUnited’s TBVPS to grow by 6.2% to $42.62, lousy growth rate.

Key Takeaways from BankUnited’s Q4 Results

It was encouraging to see BankUnited beat analysts’ revenue expectations this quarter. We were also happy its net interest income outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $46.29 immediately after reporting.

So should you invest in BankUnited right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company BankUnited will be reporting earnings this Wednesday morning. Here’s what you need to know.

BankUnited missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $279.3 million, up 7.1% year on year. It was a slower quarter for the company, with a miss of analysts’ net interest income estimates and a slight miss of analysts’ revenue estimates.

Is BankUnited a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting BankUnited’s revenue to grow 5.4% year on year to $281.9 million, slowing from the 10.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.89 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BankUnited has missed Wall Street’s revenue estimates four times over the last two years.

Looking at BankUnited’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. First Horizon delivered year-on-year revenue growth of 8.1%, beating analysts’ expectations by 3.2%, and BOK Financial reported revenues up 12.7%, topping estimates by 7.6%. First Horizon traded up 53.2% following the results.

Read our full analysis of First Horizon’s results here and BOK Financial’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. BankUnited is up 3.3% during the same time and is heading into earnings with an average analyst price target of $48.09 (compared to the current share price of $47.08).