BankUnited (NYSE: BKU) reported Q2 EPS of $0.81, $0.14 better than the analyst estimate of $0.67.

Quarterly Highlights

• For the quarter ended June 30, 2019, non-interest bearing demand deposits grew by $335 million, to 17.1% of total deposits at June 30, 2019 compared to 15.4% of total deposits at December 31, 2018. Total deposits increased by $243 million for the quarter ended June 30, 2019. Non-interest bearing demand deposits grew by $478 million for the six months ended June 30, 2019 while total deposits increased by $448 million. The cost of total deposits increased by 0.03% over the immediately preceding quarter ended March 31, 2019, to 1.70%.
• Loans and leases, including equipment under operating lease, grew by $231 million during the quarter; loan and lease growth was $420 million excluding the transfer of $189 million of Pinnacle Public Finance loans to loans held for sale at June 30, 2019. For the six months ended June 30, 2019, excluding the transfer of Pinnacle loans to held for sale, loans and leases grew by $809 million.
• Net interest income for the quarter ended June 30, 2019 was flat to the immediately preceding quarter at $190.9 million and, as expected, decreased by $64.4 million from $255.3 million for the quarter ended June 30, 2018. The net interest margin, calculated on a tax-equivalent basis, was 2.52% for the quarter ended June 30, 2019 compared to 2.54% for the immediately preceding quarter ended March 31, 2019 and 3.60% for the quarter ended June 30, 2018. The most significant reason for the declines in net interest income and the net interest margin for the quarter ended June 30, 2019 compared to the quarter ended June 30, 2018 was the decrease in accretion on formerly covered residential loans.
• During the quarter ended June 30, 2019, the Company repurchased approximately 3.0 million shares of its common stock for an aggregate purchase price of approximately $102 million. During the six months ended June 30, 2019, the Company repurchased approximately 4.1 million shares of its common stock for an aggregate purchase price of approximately $142 million, at a weighted average price of $34.44 per share.
• We are in the implementation phase of our BankUnited 2.0 initiative and remain on target to deliver the projected benefits presented to investors last quarter. Non-interest expense for the quarter ended June 30, 2019 included costs directly related to BankUnited 2.0 of $6.2 million.
• Book value per common share grew to $30.09 at June 30, 2019 from $29.49 at December 31, 2018 while tangible book value per common share increased to $29.27 from $28.71 over the same period.

Rajinder Singh, Chairman, President and Chief Executive Officer, said, "This was a solid quarter for BankUnited. Earnings were strong, our success in growing non-interest bearing deposits continued and we embarked on the implementation phase of our BankUnited 2.0 initiative. We remain on track to deliver the results we outlined for investors last quarter."

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