Overview

• US regional bank's Q2 net income and EPS both rose modestly year-over-year

• Company reported record non-interest-bearing deposits and improved credit quality

• BankUnited repurchased 1.1 mln shares for $50.1 mln in Q2

Outlook

• Company did not provide specific guidance or forecasts for the current or future periods

Result Drivers

• DEPOSIT MIX - Growth in non-interest-bearing deposits and reduced use of brokered deposits lowered funding costs and supported net interest margin

• CREDIT QUALITY - Improved credit quality with non-performing loans down 19% from prior quarter and higher coverage ratios

• FEE INCOME - Higher capital markets revenue and increased deposit service charges and fees boosted non-interest income

Company press release: ID:nBw4pjck9a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.97
Q2 Net Income		$70.70 mln
Q2 Net Interest Income		$259.17 mln
Q2 CET1 Capital Ratio		12.30%
Q2 Credit Loss Provision		$15.56 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for BankUnited Inc is $52.00, about 8.2% above its July 21 closing price of $48.07

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 21 - Webster Financial Q2 revenue beats estimates on loan, deposit growth

• July 21 - FS Bancorp Q2 net income edges up; deposits fall as brokered deposits decrease

• July 21 - Hanmi Financial Q2 net income rises on deposit growth, lower credit loss

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