BankUnited Q2 Net Income Rises to $71M, EPS $0.97 on Record Deposits
BKU sits 38% above its 52-week low of $34.79.
Summary
BankUnited posted Q2 net income of $70.7M, or $0.97 per share, up from $61.9M and $0.83 in Q1. The beat was driven by record non-interest-bearing deposits, which now make up 34.4% of total deposits, and a 7 bps sequential NIM expansion to 3.06%. Credit quality improved sharply — NPLs fell 19% from Q1 and the allowance coverage ratio jumped to 97%. The company also bought back $50.1M in stock during the quarter. This follows a Q1 that included one-time compensation charges; the clean Q2 print shows the underlying earnings power. The balance sheet repositioning away from wholesale funding is gaining traction, with brokered deposits now just 10.5% of the total. The stock may react positively to the deposit growth and credit improvement, though the $3.5B market cap bank remains sensitive to rate expectations.
At the time of this announcement, BKU was trading at $48.10 on NYSE in the Finance sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $34.79 to $52.11. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.