A month has gone by since the last earnings report for BankUnited, Inc. (BKU). Shares have lost about 1.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is BankUnited due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for BankUnited, Inc. before we dive into how investors and analysts have reacted as of late.

BankUnited Q2 Earnings Lag Estimates as Expenses Rise Y/Y

BankUnited’s second-quarter earnings of 97 cents per share lagged the Zacks Consensus Estimate of $1.02 per share. However, the bottom line was up 6.6% from the prior-year quarter.

Results were primarily hurt by a rise in non-interest expenses. Also, sequential declines in loans and deposits were a negative. However, higher net interest income and fee income along with lower provisions provided some support.

Net income totaled $70.7 million, up 2.8% from the year-ago quarter. Our estimate for the metric was $73.1 million.

Revenues Improve, Expenses Rise

Quarterly net revenues were $284.6 million, up 3.9% year over year. However, the top line missed the Zacks Consensus Estimate of $290.6 million.

NII was $255.3 million, which rose 3.7% year over year. The net interest margin expanded 13 basis points (bps) to 3.06%. Our estimates for NII and NIM were $264.5 million and 3.08%, respectively.

Non-interest income of $29.2 million increased 5.1% from the prior-year quarter. The rise was mainly driven by higher deposit service charges and fees, net gain on investment securities and capital markets income. We had projected non-interest income of $28.6 million.

Non-interest expenses increased 6.3% to $174.6 million. The rise was due to higher employee compensation and benefits costs, occupancy and equipment costs, and other non-interest expenses, partially offset by lower depreciation of operating lease equipment costs, deposit insurance expenses and technology costs. Our estimate for non-interest expenses was $176.6 million.

Loans & Deposits Decline Sequentially

As of June 30, 2026, net loans were $23.7 billion, down marginally from the prior quarter. Total deposits amounted to $28.9 billion, down from $29.4 billion in the previous quarter. Our estimates for total loans and total deposits were $24.4 billion and $29.3 billion, respectively.

Credit Quality Improves

In the reported quarter, BankUnited recorded a provision for credit losses of $15.6 million, down marginally from the prior-year quarter. We had expected the metric to be $15.9 million.

As of June 30, 2026, the ratio of net charge-offs to average loans was 0.11%, down from 0.21% in the year-ago period. Also, the non-performing assets ratio was 0.66%, down from 1.08%.

Capital & Profitability Ratios: Mixed Bag

As of June 30, 2026, the Common Equity Tier 1 risk-based capital ratio was 12.3%, up from 12.2% as of June 30, 2025. The total risk-based capital ratio was 13.9%, down from 14.3%.

In the reported quarter, the return on average assets was 0.81%, up from 0.78% in the year-earlier quarter. Return on average stockholders’ equity was 9.3%, down from 9.4%.

Share Repurchase Update

During the quarter, BankUnited repurchased approximately 1.1 million shares for $50.1 million.

2026 Outlook

Management projects total average deposits (excluding brokered) to grow 6%, with non-interest-bearing demand deposits to rise 13% (changed from previous expectation of 12% growth).

Management expects the total loan balance to rise 1-2% (changed from previous growth expectation of 2%). Core loans are projected to increase 4-5% (changed from 6% projected earlier). This will be offset by 8% run-off of the residential and other loan portfolio.

Management anticipates NII growth to 5-6% (changed from previous 9% growth forecast). NIM is expected to grow throughout the year and touch roughly 3.15% in the fourth quarter. Full-year NIM is expected to be 3.08%.

Non-interest income is projected to increase 7% (changed from 6% growth projected earlier).

Total revenues are anticipated to rise 5-6% year over year (changed from previous expectation of 8%).

Non-interest expenses are expected to increase 5% (changed from previous expectation of 4% rise).

Provisions are expected to be in the range of $68 and $72 million.

The company expects the CET 1 ratio to be 11.8% (changed from previous expectation of 11.6%).

The effective tax is anticipated to be 26%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, BankUnited has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise BankUnited has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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BankUnited, Inc. (BKU): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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