BankUnited: Strong Deposit Trends Enable Further Upside
Summary
- BankUnited shares have surged nearly 40% over the past year, driven by strong deposit growth and conservative underwriting, outperforming the market significantly.
- Q2 earnings rose to $0.72 per share, with net interest margin improving and strong deposit growth, particularly in noninterest-bearing deposits, which improves the forward outlook.
- Despite some concerns in commercial real estate, BKU's conservative underwriting and strong capital position mitigate potential risks, supporting continued balance sheet growth.
- With a fair value estimate of $37-37.50, BKU offers a potential 10-11% total return, making it an attractive investment.
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