Earnings and revenue miss expectations
BankUnited Inc. (NYSE:BKU) reported mixed second-quarter 2026 results on Wednesday, with both earnings and revenue coming in below Wall Street expectations despite year-over-year growth and improving balance sheet metrics.
The bank posted adjusted earnings per share of $0.97, missing the analyst consensus estimate of $1.01.
Revenue totaled $284.57 million, also falling short of the expected $290.45 million, although it represented a 4% increase from $273.9 million in the second quarter of 2025.
Despite the earnings miss, BankUnited shares were unchanged in after-hours trading following the announcement.
Net income increased to $70.7 million, or $0.97 per diluted share, from $68.8 million, or $0.91 per diluted share, a year earlier.
Deposit growth strengthens funding base
BankUnited reported record non-interest-bearing deposits of $9.93 billion at the end of the quarter.
The balance increased 11% from the previous quarter and 9% compared with the same period last year.
Average non-interest-bearing demand deposits rose by $564 million, or 7%, sequentially and by $1 billion, or 13%, year over year, accounting for 34.4% of total deposits.
“Our second quarter performance reflects continued progress in strengthening the franchise and enhancing the quality of our balance sheet,” said Chairman, President and Chief Executive Officer Rajinder Singh. “Record non-interest-bearing deposits, solid fee income performance, and improved credit quality highlight the meaningful progress we have made over the past year.”
Profitability and credit quality improve
Net interest margin expanded to 3.06%, increasing seven basis points from the previous quarter and 13 basis points from a year earlier.
The bank also continued to improve its credit quality during the period.
Non-performing loans declined by $51 million, or 19%, from the first quarter and were down $152 million, or 40%, compared with the second quarter of 2025.
The allowance for credit losses relative to non-performing loans increased to 97.14%, up from 75.90% in the previous quarter.
Share buybacks continue
BankUnited continued returning capital to shareholders through share repurchases.
During the second quarter, the company bought back approximately 1.1 million shares for a total of $50.1 million.