tiprankstipranks
Trending News
More News >
Bankunited (BKU)
NYSE:BKU
Advertisement

BankUnited (BKU) AI Stock Analysis

Compare
167 Followers

Top Page

BKU

BankUnited

(NYSE:BKU)

Select Model
Select Model
Select Model
Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
$40.00
â–²(8.58% Upside)
BankUnited's overall stock score reflects strong earnings performance and attractive valuation, offset by technical weaknesses and challenges in revenue growth. The optimistic outlook from the earnings call supports future growth prospects, while the current technical indicators suggest caution in the short term.
Positive Factors
Noninterest Income Growth
The significant growth in noninterest income indicates successful diversification of revenue streams, reducing reliance on traditional interest income and enhancing financial stability.
Capital Strength
Strong capital levels and increasing tangible book value per share reflect robust financial health, providing a solid foundation for future growth and resilience against economic fluctuations.
Expansion in Tampa
The new office in Tampa signifies strategic expansion in a growing market, enhancing BankUnited's presence and capabilities in corporate and commercial banking services.
Negative Factors
Revenue Growth Challenges
Declining revenue growth poses a risk to long-term profitability and market competitiveness, necessitating strategic initiatives to revitalize growth and maintain market position.
Loan Portfolio Decline
The decline in the loan portfolio, particularly in commercial real estate and industrial segments, could impact future interest income and limit growth opportunities.
Free Cash Flow Decline
A decline in free cash flow growth may constrain liquidity and limit the bank's ability to invest in growth initiatives or weather economic downturns.

BankUnited (BKU) vs. SPDR S&P 500 ETF (SPY)

BankUnited Business Overview & Revenue Model

Company DescriptionBankUnited, Inc. (BKU) is a bank holding company based in the United States, primarily focused on providing a range of financial services including commercial banking, retail banking, and mortgage banking. The company operates through its wholly-owned subsidiary, BankUnited, N.A., and serves a diverse customer base that includes individuals, businesses, and government entities. The bank offers various products such as checking and savings accounts, loans, credit cards, and treasury management services, primarily in the southeastern and northeastern regions of the U.S.
How the Company Makes MoneyBankUnited generates revenue primarily through interest income from loans and fees associated with its financial products and services. The bank makes money by lending to customers at higher interest rates than what it pays on deposits, a key component of its net interest margin. Key revenue streams include commercial and consumer loans, mortgage originations, and deposit account service fees. Additionally, the bank earns income from investment securities and service charges on deposit accounts. Partnerships with financial technology firms and local businesses also contribute to its earnings by enhancing service offerings and customer engagement.

BankUnited Earnings Call Summary

Earnings Call Date:Oct 22, 2025
(Q3-2025)
|
Next Earnings Date:Jan 15, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with increased earnings, controlled expenses, and significant growth in noninterest income. However, challenges in the loan portfolio and specific credit issues were noted. The overall sentiment is optimistic with a focus on growth and strategic initiatives.
Q3-2025 Updates
Positive Updates
Solid Earnings and Financial Metrics
Earnings are up, ROA is 82 basis points (an improvement over last quarter), ROE is 9.5%, and EPS is $0.95, beating the consensus of $0.88. Margin reached 3% a quarter earlier than expected.
Controlled Expenses and Capital Growth
Expenses are controlled, and capital continues to grow. CET1 is at 12.5%, and tangible book value per share is $39.27. The buyback strategy is more opportunistic due to market volatility.
Deposit and Loan Growth
$1.2 billion in non-brokered deposit growth over the last twelve months, and mortgage warehouse grew by $83 million in the quarter.
Noninterest Income Growth
Noninterest income is up 24% year over year, excluding lease financing, due to growth in commercial fee businesses.
Optimism in Business Environment
Strong pipelines in commercial and real estate teams, with business sentiment optimistic across various segments.
Negative Updates
Loan Portfolio Challenges
CRE and C&I loan portfolio declined by $69 million for the quarter, with C&I segment down by $130 million due to ongoing payoffs.
Non-Performing Loans
NPLs were essentially flat, but there was an increase in specific reserves due to one C&I credit and one office loan.
Seasonal Deposit Fluctuations
Total deposits were basically flat for the quarter, declining by $28 million due to normal seasonal fluctuations.
Company Guidance
During the third quarter of 2025, BankUnited, Inc. demonstrated strong financial performance, with several key metrics indicating positive growth. Earnings per share (EPS) rose to $0.95, surpassing the consensus estimate of $0.88. The return on assets (ROA) improved to 82 basis points, and the return on equity (ROE) reached 9.5%. The bank achieved a net interest margin of 3%, a quarter earlier than anticipated. Capital levels remained robust, with CET1 at 12.5% and tangible book value per share increasing to $39.27. The loan-to-deposit ratio stood at 82.8%, while credit quality remained stable with non-performing loans (NPLs) and criticized assets showing minimal change. The bank also noted a 20% growth in core fee income, signifying successful diversification efforts. Additionally, despite a flat performance in deposit growth, the bank's opportunistic buyback strategy is in place to leverage market volatility.

BankUnited Financial Statement Overview

Summary
BankUnited demonstrates solid profitability and operational efficiency, but faces challenges with revenue growth and cash flow sustainability. The company has improved its leverage position, which is a positive sign for financial stability. Continued focus on revenue growth and cash flow management will be crucial for future success.
Income Statement
65
Positive
BankUnited's income statement shows mixed results. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company maintains healthy gross and net profit margins, suggesting efficient operations. The EBIT and EBITDA margins are stable, reflecting consistent operational performance despite revenue challenges.
Balance Sheet
70
Positive
The balance sheet reveals a moderate debt-to-equity ratio, which has improved from previous years, indicating better leverage management. Return on equity is reasonable, showing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced approach to asset financing.
Cash Flow
60
Neutral
Cash flow analysis shows a decline in free cash flow growth, which could impact future liquidity. However, the operating cash flow to net income ratio is positive, indicating that the company generates sufficient cash from operations to cover net income. The free cash flow to net income ratio remains strong, reflecting good cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.96B2.02B1.94B1.31B1.09B1.20B
Gross Profit999.76M958.35M873.03M915.44M996.96M706.55M
EBITDA408.77M376.46M311.14M452.75M527.88M321.87M
Net Income258.00M232.47M178.67M284.97M414.98M197.85M
Balance Sheet
Total Assets35.46B35.24B35.76B37.03B35.82B35.01B
Cash, Cash Equivalents and Short-Term Investments10.20B491.12M588.28M572.65M314.86M397.72M
Total Debt2.96B3.64B5.82B6.33B2.83B4.03B
Total Liabilities32.51B32.43B33.18B34.59B32.78B32.03B
Stockholders Equity2.95B2.81B2.58B2.44B3.04B2.98B
Cash Flow
Free Cash Flow365.58M433.78M657.50M1.29B1.19B844.57M
Operating Cash Flow365.58M433.78M657.50M1.29B1.22B864.17M
Investing Cash Flow234.15M409.71M980.57M-2.12B-1.64B-2.62B
Financing Cash Flow-231.89M-940.66M-1.62B1.08B334.87M1.94B

BankUnited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price36.84
Price Trends
50DMA
38.11
Negative
100DMA
36.86
Negative
200DMA
35.93
Positive
Market Momentum
MACD
-0.30
Positive
RSI
44.27
Neutral
STOCH
28.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKU, the sentiment is Negative. The current price of 36.84 is below the 20-day moving average (MA) of 38.06, below the 50-day MA of 38.11, and above the 200-day MA of 35.93, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 28.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKU.

BankUnited Risk Analysis

BankUnited disclosed 44 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$2.62B13.019.30%4.27%-5.14%-0.70%
68
Neutral
$2.65B14.20-12.42%4.72%-55.54%-386.73%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
68
Neutral
$2.78B10.648.98%3.31%-2.80%51.85%
67
Neutral
$2.55B15.0813.49%2.99%10.28%22.73%
64
Neutral
$2.74B14.648.07%3.10%8.34%14.44%
64
Neutral
$2.87B24.965.85%1.36%10.80%-6.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BKU
BankUnited
36.84
3.12
9.25%
CVBF
Cvb Financial
18.73
0.49
2.69%
PRK
Park National
159.73
-6.42
-3.86%
SFNC
Simmons 1st Nat'l
17.96
-4.40
-19.68%
TOWN
TowneBank
33.55
0.59
1.79%
FBK
FB Financial
54.26
6.40
13.37%

BankUnited Corporate Events

Stock BuybackFinancial Disclosures
BankUnited Announces $100M Share Repurchase Program
Positive
Jul 23, 2025

On July 22, 2025, BankUnited‘s Board of Directors authorized a share repurchase program of up to $100 million and the redemption of $400 million in senior notes due November 2025. The company reported strong financial results for the second quarter of 2025, with a net income increase of 18% from the previous quarter and a 25% increase compared to the same period in 2024. The company also saw improvements in net interest margin, deposit growth, and a decline in criticized and classified loans, indicating a robust financial position.

Executive/Board ChangesShareholder Meetings
BankUnited Approves Key Proposals at Annual Meeting
Neutral
May 23, 2025

On May 22, 2025, BankUnited, Inc. held its annual meeting of shareholders where three key proposals were voted on. The election of nine directors to the Board was approved, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for 2025, and the compensation of the Company’s named executive officers was approved.

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.Date of analysis: Oct 22, 2025