BankUnited Inc. (BKU): First Take: PPNR miss on lower NII / higher costs; Guide points to sizable downside to 2H26 expectations

Research evidence excerpt

BankUnited Inc. (BKU): First Take: PPNR miss on lower NII / higher costs; Guide points to sizable downside to 2H26 expectations

Equity Research

22 July 2026 | 8:20AM EDT

BankUnited Inc. (BKU): First Take: PPNR miss on lower NII / higher costs;

Guide points to sizable downside to 2H26 expectations

Bottom line on the fundamentals / stock: Overall, this was a mixed quarter in our Ryan M. Nash, CFA

+1(212)902-8963 | ryan.nash@gs.com

view, as PPNR came in much lower than expected given the miss on NII and higher Goldman Sachs & Co. LLC

expenses while core fees were a touch higher along with a provision beat (lower Lucas Haimes

NCOs), which partially made up for the PPNR miss. Loan growth was slower than +1(212)902-3305lucas.haimes@gs.com|

expected which led to stable AEA (vs. expectations for up ~2%) which along with a Goldman Sachs & Co. LLC

lower NIM (largely on deposit costs) led to the NII miss. Credit was solid as NCOs

outperformed and NPLs came down QoQ. In terms of guidance, BKU laid out

updated views on most line items which pointed to meaningful PPNR downside in 2H

vs. expectations largely on lower NII and higher costs, and while the NIDDA growth is

growing faster than initial expectations, the lower exit NIM (3.15% vs. 3.20% prior) as

well as slower core loan growth are contributing to the NII downside. We think the

main focus on the call today is likely to be on expectations for deposit costs and loan

yields through the rest of the year given the slower NIM expansion. So when we put it

all together, this was a mixed quarter as well as guide, and we think shares are likely

to trade softer.

Key questions for the call: 1) With NIM trending below prior expectations despite

the higher NIDDA growth outlook, can you talk about the drivers of the softer