BankUnited's Q2 net income rises, announces $100 mln buyback

Overview

• BankUnited Q2 net income rises 18% qtr/qtr, driven by strong NIDDA growth

• Company announces $100 mln share repurchase program

• Net interest income for Q2 grows 5.6% qtr/qtr, driven by higher loan yields

Outlook

• BankUnited did not provide specific financial guidance for future quarters

• Company highlights strategic exits impacting C&I loan growth

• BankUnited focuses on balance sheet strategy for loan portfolio

• Company plans new wholesale banking offices in Morristown, NJ and Charlotte, NC

Result Drivers

• NIDDA GROWTH - Non-interest bearing demand deposits grew by $1.0 bln, increasing to 32% of total deposits

• MARGIN EXPANSION - Net interest margin expanded by 0.12% to 2.93%

• LOAN PORTFOLIO - Total loans declined by $56 mln due to strategic exits and unscheduled payoffs in C&I loans

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "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 $41.00, about 5.6% above its July 22 closing price of $38.72

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw9gm3Lxa