BankUnited (NYSE:BKU) Issues Earnings Results

BankUnited (NYSE:BKU) released its earnings results on Wednesday. The financial services provider reported $0.97 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.03), Briefing.com reports. BankUnited had a return on equity of 9.13% and a net margin of 14.76%.The company had revenue of $284.57 million during the quarter, compared to analysts’ expectations of $290.33 million. During the same quarter in the previous year, the company earned $0.91 EPS. The firm’s quarterly revenue was up 3.9% compared to the same quarter last year.

Here are the key takeaways from BankUnited’s conference call:

• NIDDA growth was a standout, with average NIDDA up 13% year over year and the NIDDA-to-total-deposits ratio reaching an all-time high of 34.4%. Management said this is the company’s top strategic priority and expects continued momentum.
• Second-quarter earnings improved, with EPS of $0.97, net income of about $71 million, and ROE rising to 9.3% from 8.1% last quarter. Net interest margin also expanded to 3.06%, helped by better funding mix and lower deposit costs.
• The bank said it is staying disciplined on loan pricing and structure amid intense competition, even if that means walking away from business. As a result, it exited roughly $230 million to $240 million of loans this quarter and reduced full-year loan growth guidance.
• Credit quality improved sharply, with charge-offs dropping to $6.4 million from $36 million last quarter and non-performing loans falling 19% sequentially and 40% year to date. Classified and criticized loans were essentially flat.
• Management trimmed full-year guidance for core loan growth and net interest income, mainly due to slower-than-expected loan production and tighter spreads, while slightly raising fee income and expense assumptions. The company still expects seasonal strength in the second half and plans to continue share repurchases.

BankUnited Price Performance

NYSE BKU opened at $46.92 on Friday. BankUnited has a twelve month low of $34.79 and a twelve month high of $52.11. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.82 and a current ratio of 0.82. The stock has a market capitalization of $3.41 billion, a PE ratio of 12.86 and a beta of 1.17. The stock has a 50-day simple moving average of $47.65 and a 200 day simple moving average of $47.05.

BankUnited Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 10th will be issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Friday, July 10th. BankUnited’s dividend payout ratio is 36.77%.

Insider Activity at BankUnited

In related news, Director John N. Digiacomo sold 1,000 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $45.97, for a total transaction of $45,970.00. Following the transaction, the director directly owned 15,027 shares in the company, valued at $690,791.19. The trade was a 6.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Jay D. Richards sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $48.67, for a total value of $194,680.00. Following the completion of the transaction, the insider directly owned 40,502 shares of the company’s stock, valued at approximately $1,971,232.34. This trade represents a 8.99% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Strs Ohio acquired a new stake in BankUnited during the first quarter worth $28,000. Kestra Advisory Services LLC bought a new position in shares of BankUnited during the 4th quarter worth about $35,000. Quarry LP boosted its position in shares of BankUnited by 158.2% during the 3rd quarter. Quarry LP now owns 940 shares of the financial services provider’s stock valued at $36,000 after acquiring an additional 576 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in BankUnited by 141.9% in the second quarter. EverSource Wealth Advisors LLC now owns 1,531 shares of the financial services provider’s stock valued at $54,000 after acquiring an additional 898 shares during the period. Finally, Smartleaf Asset Management LLC raised its position in BankUnited by 24.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,810 shares of the financial services provider’s stock worth $81,000 after purchasing an additional 358 shares in the last quarter. 99.70% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on BKU. Wells Fargo & Company upped their price objective on shares of BankUnited from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Monday, March 30th. Raymond James Financial reaffirmed an “outperform” rating on shares of BankUnited in a research report on Wednesday, April 22nd. Weiss Ratings raised BankUnited from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, May 29th. Wall Street Zen downgraded BankUnited from a “hold” rating to a “sell” rating in a research note on Saturday, June 27th. Finally, Keefe, Bruyette & Woods reduced their target price on BankUnited from $55.00 to $50.00 and set a “market perform” rating for the company in a report on Thursday, April 23rd. Seven equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $52.27.

About BankUnited

BankUnited, Inc is a bank holding company based in Miami Lakes, Florida, operating through its subsidiary BankUnited, National Association. The company provides a broad range of commercial banking products and services, including deposit accounts, commercial lending and treasury management. It serves middle-market and small-business clients, offering tailored financing solutions across a variety of industry sectors.

The bank’s lending portfolio includes commercial and industrial loans, commercial real estate loans and construction financing, as well as residential mortgage lending.