BankUnited's Q3 adjusted EPS misses estimates, non-interest income declines
BKU•BankUnited reported Q3 adjusted EPS of $1.03, below the $1.05 analyst estimate, as non-interest income declined. Net income was $72.2 million, and the company repurchased 2.1 million shares for $97 million.
1. Quarterly results
BankUnited's Q3 adjusted EPS was $1.03, missing the $1.05 consensus estimate from nine analysts. Net income was $72.2 million, and diluted EPS was $1.01.
2. Income and capital
Net interest margin expanded, driven by improved deposit pricing, sales of lower-yielding securities and favorable loan repricing. Non-interest income declined due to losses on securities sales, reduced BOLI returns, and lower lease financing and capital markets income. The CET1 capital ratio was 12.1%, and the company repurchased 2.1 million shares for $97 million.
3. Credit and outlook
Credit metrics improved year over year, with fewer criticized and classified loans, although non-performing loans rose from the prior quarter. BankUnited said it remains focused on increasing profitability and that strong capital levels support growth initiatives and shareholder returns.
