BankUnited (BKU) investor relations material

Executive summary

• Net income for Q2 2026 was $71 million ($0.97 per diluted share), up from $61.9 million in Q1 2026, with ROE improving to 9.3% and ROAA to 0.81%.

• Achieved record non-interest demand deposits (NIDDA) of nearly $10 billion, representing 34.4% of total deposits, reflecting a decade of organic growth.

• Net interest margin expanded to 3.06%, up from 2.99% in Q1 2026 and 2.93% in Q2 2025.

• Brokered and wholesale deposits reduced to just over 10%, the lowest since the COVID crisis.

• Lending growth lagged guidance due to competition and strategic exits, but pipelines for Q3 and Q4 remain strong.

Financial highlights

• Net interest income for Q2 2026 was $259.2 million, up $10 million year-over-year; non-interest income rose to $29.2 million, driven by higher service charges and capital markets revenue.

• Non-interest expense increased to $175 million, mainly due to higher compensation and deposit-related costs.

• Charge-offs dropped to $6.4 million from $36 million last quarter; non-performing loans declined by $51 million (19%) sequentially and $152 million (40%) year-over-year.

• CET1 capital ratio at 12.3%, up 10 basis points, with tangible book value per share at $40.48, up 6% year-over-year.

• Return on average assets: 0.81%; return on average equity: 9.3%.

Outlook and guidance

• Loan growth guidance revised down to 4%-5% for 2026 due to competition and strategic exits.

• NIDDA average balance guidance raised to 12%-13% growth; total deposits (ex-brokered) expected up 6%.

• Net interest income and revenue growth guidance lowered to 5%-6% for the year, with full-year NIM at 3.08%.

• Non-interest income forecasted to rise 7%, expenses to increase 5%, and credit provision between $68-$72 million.

• CET1 capital ratio expected at 11.8% by year-end.