BankUnited (BKU) investor relations material

Executive summary

• Net income for Q1 2026 was $61.9 million ($0.83 per diluted share), up from $58.5 million ($0.78 per share) in Q1 2025, but down from Q4 2025 figures, reflecting typical first-quarter seasonality.

• Pre-provision net revenue (PPNR) reached $106.3 million, up 12% year-over-year.

• Market share increased despite a seasonally slow quarter, positioning for future growth.

• Management reiterated full-year guidance and expressed confidence in achieving targets despite market uncertainties.

Financial highlights

• Net interest income was $249.0 million, up $15.8 million year-over-year but down $9.2 million sequentially; NIM was 2.99%, up 18 bps year-over-year, down 7 bps sequentially.

• Non-interest income was $24.7 million, up $2.4 million year-over-year, with service charges and commercial card revenue contributing to growth.

• Non-interest expense was $167.4 million, up $7.2 million year-over-year, with higher compensation costs and a $6.7 million FDIC special assessment release.

• Provision for credit losses was $24.6 million, mainly due to higher specific reserves for two C&I loans.

• Tangible book value per share increased 7% year-over-year to $40.05.

Outlook and guidance

• Management expects improved profitability and growth, supported by increased market share and a stronger funding profile.

• Full-year guidance remains unchanged, with management confident in achieving NIM of 3.20% and NIDDA growth targets.

• Provision expense is expected to be front-loaded, with $68 million guidance for the year, skewed to the first half.

• Brokered deposits are expected to be reduced further; franchise, equipment, and municipal finance portfolios are expected to continue declining.

• The company remains committed to maintaining strong liquidity and capital positions, with CET1 at 12.2% and tangible common equity to tangible assets at 8.3%.