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BankUnited
(NYSE:BKU)
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Rating:63Neutral
Price Target:
$50.00
â–²(7.60% Upside)
Action:Reiterated
Date:08/07/26
BKU scores as a stable, mid-range setup driven primarily by moderate financial performance: improved leverage and supportive cash flow are positives, but TTM revenue decline and weaker operating margins weigh on the outlook. Technical indicators are mixed-to-soft with negative MACD and the stock below short-term moving averages. Valuation is reasonable (P/E ~12.9) with a ~2.7% dividend yield, and the latest earnings call supports the score via improving funding mix, margin trajectory, and credit quality, partly offset by lowered NII/revenue and loan-growth guidance.
Positive Factors
Stronger balance sheet / lower leverage
Material deleveraging to ~0.63x debt-to-equity and stable equity improves solvency and financial flexibility. This durable strength supports capital returns, cushions credit stress, and provides capacity for disciplined lending or opportunistic investments without needing immediate external capital.
Negative Factors
Top-line contraction
A ~12% TTM revenue decline signals a sustained pressure on core earnings capacity. Persistent top-line contraction reduces operating leverage, constrains reinvestment, and makes earnings more sensitive to margin or credit swings absent a clear reversal in loan growth or fee income expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger balance sheet / lower leverage
Material deleveraging to ~0.63x debt-to-equity and stable equity improves solvency and financial flexibility. This durable strength supports capital returns, cushions credit stress, and provides capacity for disciplined lending or opportunistic investments without needing immediate external capital.
Read all positive factors
BankUnited (BKU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.39B
Dividend Yield2.74%
Average Volume (3M)1.16M
Price to Earnings (P/E)12.9
Beta (1Y)1.07
Revenue Growth-5.21%
EPS Growth6.73%
CountryUS
Employees1,785
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.61
Shares Outstanding72,681,720
10 Day Avg. Volume1,391,941
30 Day Avg. Volume1,160,792
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)1.11
Price to Sales (P/S)1.58
P/FCF Ratio9.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$48.80Price Target Upside5.01% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)3.95
Revenue Forecast (FY)$1.16B
BankUnited Business Overview & Revenue Model
Company Description
BankUnited, Inc. (BKU) is a U.S. bank holding company whose primary operating subsidiary, BankUnited, N.A., provides retail and commercial banking services. The company operates in the financial services sector, offering deposit products (e.g., ch...
How the Company Makes Money
BankUnited primarily earns money through net interest income and non-interest income. Net interest income is generated by collecting interest on loans and other interest-earning assets (such as securities) and paying interest on funding sources (p...
BankUnited Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call emphasized significant operational wins on the deposit and funding side (record NIDDA ratio, strong NIDDA and core deposit growth, funding mix improvement, margin expansion QoQ/YoY), material improvement in credit metrics (much lower charge-offs and NPLs), and continued capital returns via buybacks. Offsetting items include loan growth tracking below original targets, tougher competitive pricing particularly in CRE, and downward revisions to NII and revenue guidance driven by timing and mix. Management maintained a disciplined stance—walking away from mispriced business—while expressing optimism about pipelines and the back half of the year.Positive Updates
Record NIDDA Ratio and Strong Deposit Growth
Non-interest bearing demand deposits and accounts (NIDDA) reached a record high of 34.4% of total deposits; period-end NIDDA approached $10.0B (reported ~ $9.935B). NIDDA increased $991M during the quarter and average NIDDA rose $564M. Core deposits (ex-broker) increased $1.1B this quarter. NIDDA year-over-year growth was +13% (ahead of 12% guidance); core deposits were up ~7% year-over-year and ~3% quarter-over-quarter.
Negative Updates
Loan Growth Below Original Targets and Guidance Reduced
Core loan growth is tracking below original plans: average core loans ~4% year-over-year and ~1% quarter-over-quarter. Management lowered full-year core loan growth guidance to 4%-5% from an original 6%, citing competitive pricing and strategic hold decisions.
Read all updates
Q2-2026 Updates
Positive
Negative
Record NIDDA Ratio and Strong Deposit Growth
Non-interest bearing demand deposits and accounts (NIDDA) reached a record high of 34.4% of total deposits; period-end NIDDA approached $10.0B (reported ~ $9.935B). NIDDA increased $991M during the quarter and average NIDDA rose $564M. Core deposits (ex-broker) increased $1.1B this quarter. NIDDA year-over-year growth was +13% (ahead of 12% guidance); core deposits were up ~7% year-over-year and ~3% quarter-over-quarter.
Read all positive updates
Company Guidance
The company said it modestly fine-tuned full-year guidance: core loan growth trimmed to 4%–5% (from ~6%), total loan growth modestly lower, average NIDDA growth nudged up from the prior 12%–13% outlook, and net interest income and total revenue guidance reduced to 5%–6% (NII was previously modeled higher). Management still expects margin expansion (Q2 NIM 3.06%) toward ~3.15% by year-end, while non‑interest income was modestly raised and expense guidance was increased slightly (driven by higher deposit costs and compensation). Credit remains strong (Q2 charge‑offs $6.4M; charge‑off ratio ~11 bps; allowance coverage ~91 bps; NPLs down ~40% YTD), CET1 was 12.3% after repurchasing just over $50M of stock (≈$146M of board‑authorized capacity remaining), and the outlook assumes one rate hike late in the year with provisions expected around prior guidance to slightly higher depending on second‑half loan balances.BankUnited Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
67
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.87B | 2.14B | 2.02B | 1.94B | 1.31B | 1.09B |
| Gross Profit | 836.71M | 1.06B | 958.35M | 873.03M | 915.44M | 996.96M |
| EBITDA | 191.84M | 393.13M | 376.46M | 311.14M | 452.75M | 527.88M |
| Net Income | 273.66M | 268.37M | 232.47M | 178.67M | 284.97M | 414.98M |
Balance Sheet | ||||||
| Total Assets | 34.88B | 35.04B | 35.24B | 35.76B | 37.03B | 35.82B |
| Cash, Cash Equivalents and Short-Term Investments | 9.69B | 217.78M | 491.12M | 588.28M | 572.65M | 314.86M |
| Total Debt | 1.90B | 1.97B | 3.64B | 5.82B | 6.33B | 2.83B |
| Total Liabilities | 31.88B | 31.99B | 32.43B | 33.18B | 34.59B | 32.78B |
| Stockholders Equity | 3.00B | 3.05B | 2.81B | 2.58B | 2.44B | 3.04B |
Cash Flow | ||||||
| Free Cash Flow | 389.91M | 358.61M | 433.78M | 657.50M | 1.29B | 1.19B |
| Operating Cash Flow | 389.91M | 358.61M | 433.78M | 657.50M | 1.29B | 1.22B |
| Investing Cash Flow | -18.78M | -214.43M | 409.71M | 980.57M | -2.12B | -1.64B |
| Financing Cash Flow | -637.40M | -417.52M | -940.66M | -1.62B | 1.08B | 334.87M |
BankUnited Risk Analysis
BankUnited disclosed 42 risk factors in its most recent earnings report. BankUnited reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BankUnited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.77B | 18.50 | 12.46% | 2.96% | 11.59% | 8.54% | |
74 Outperform | $3.95B | 14.91 | 8.22% | 3.51% | 8.42% | -0.88% | |
74 Outperform | $3.11B | 16.06 | 10.03% | 1.35% | 43.33% | 94.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.42B | -7.86 | -10.21% | 3.69% | -56.95% | -299.45% | |
64 Neutral | $3.49B | 10.59 | 11.59% | 4.88% | 35.08% | 54.57% | |
63 Neutral | $3.39B | 12.92 | 9.04% | 2.75% | -5.21% | 6.73% |
* Financial Sector Average
BKU
BankUnited
46.63
12.00
34.64%
CVBF
Cvb Financial
22.71
4.43
24.25%
PRK
Park National
205.52
50.96
32.97%
SFNC
Simmons 1st Nat'l
23.55
5.62
31.31%
TOWN
TowneBank
37.73
4.55
13.70%
FBK
FB Financial
60.82
14.47
31.21%
BankUnited Corporate Events
Business Operations and StrategyShareholder Meetings
BankUnited Shareholders Approve Expanded Long-Term Equity Incentive Plan
Positive
May 21, 2026
At its May 21, 2026 annual shareholders meeting, BankUnited investors approved an amended and restated 2023 Omnibus Equity Incentive Plan, which replaces the prior plan and expands the range of equity and cash awards the bank can grant to employee...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.