Stock to Watch For Earnings: BankUnited, Inc (NYSE:BKU)

BankUnited, Inc. (NYSE:BKU) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $0.51 per share on revenue of $230.04M. Analysts had been modeling earning per share of $0.52 with $232.45M in revenue.

BankUnited, Inc. (NYSE:BKU) announced financial results for the quarter ended March 31, 2016.

For the quarter ended March 31, 2016, the Company reported net income of $54.9 million, or $0.51 per diluted share, compared to $46.5 million, or $0.44 per diluted share, for the quarter ended March 31, 2015. Operating results for the quarter ended March 31, 2016 generated a return on average stockholders’ equity of 9.76% and a return on average assets of 0.91%.

John Kanas, Chairman, President and Chief Executive Officer, said, “Our primary markets continue to show resilience despite a quieter trend nationally. Earning assets grew nearly $1 billion this quarter and our outlook for the balance of 2016 remains positive.”

Performance Highlights

• Total interest earning assets increased by $972 million during the first quarter of 2016. New loans and leases, including equipment under operating lease, grew by $527 million during the quarter.


• Deposit growth exceeded loan growth for the quarter. Total deposits increased by $576 million for the quarter ended March 31, 2016 to $17.5 billion.


• Net interest income increased by $34.1 million to $206.8 million for the quarter ended March 31, 2016 from $172.7 million for the quarter ended March 31, 2015. Interest income increased by $48.9 million primarily as a result of an increase in the average balance of loans outstanding. Interest expense increased by $14.8 million due primarily to an increase in average interest bearing liabilities.


• The net interest margin, calculated on a tax-equivalent basis, was 3.83% for the quarter ended March 31, 2016 compared to 4.02% for the quarter ended March 31, 2015 and 3.94% for the immediately preceding quarter ended December 31, 2015. The origination of new loans at current market yields lower than those on loans acquired in the FSB Acquisition (as defined below) and the cost of the senior notes issued in November 2015 contributed to the decline in the net interest margin.


• Book value and tangible book value per common share grew to $21.74 and $20.99, respectively, at March 31, 2016.

BankUnited, Inc. earnings per share showed an increasing trend of 20.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 255%.Analysts project EPS growth over the next 5 years at 13.24%. It has EPS annual growth over the past 5 fiscal years of 3.4% when sales grew 9.6. It reported 24.2% sales growth, and 15.9% EPS growth in the last quarter.

The stock is trading at $33.1, up 12.07% from 52-week low of $29.72. The stock trades down -16.15% from its peak of $39.97 and 16.07% above the consensus price target of $38.42. Its volume clocked up at 1.07 million shares which is higher than the average volume of 0.85 million shares. Its market capitalization currently stands at $3.47B.