BKU

Deregulation and M&A Boom: Wells Fargo analyst Mike Mayo suggests that investors are overlooking a potential surge in bank mergers and acquisitions driven by a favorable regulatory environment, which he describes as the best in three decades.

Regulatory Changes: Mayo highlights that upcoming regulatory changes, including faster deal approvals and reduced scrutiny, could enhance banks' ability to merge and acquire, with expectations of continued deregulation through 2028.

Performance Trends: Historically, banks have outperformed during periods of deregulation, similar to trends observed in the late 1990s, indicating a potential for significant growth in the sector.

Top Takeover Candidates: Mayo identified several banks as likely takeover targets based on a comprehensive screening process, with top candidates including BankUnited, Banc of California, and First Horizon, among others.

Stock Performance: State Street Corporation (STT) shares reached a 52-week high of $120.81, closing at $119.43, with a 22.1% increase over the past six months, outperforming both the industry and the S&P 500 Index.

Acquisitions and Restructuring: The company has been actively acquiring businesses and restructuring operations, including a recent acquisition of PriceStats and a strategic agreement with Albilad Capital, aimed at enhancing its global scale and service offerings.

Fee Income Growth: Despite a decline in total fee revenues in 2022 and 2023, STT has seen a four-year CAGR of 1.7% in fee income, driven by increased client activity and market volatility, with expectations for an 8.5-9% year-over-year increase in 2025.

Capital Distributions and Expenses: Following a successful stress test, STT raised its quarterly dividend by 11% and has a $5 billion share repurchase authorization, although it faces elevated expenses due to strategic investments and operational costs.

CFO Appointment: BankUnited, Inc. has appointed James G. Mackey as the new chief financial officer, effective November 10, 2025, succeeding Leslie N. Lunak, who will transition to an executive advisor role until January 2026.

Background of Mackey: Mackey was hired on July 23, 2025, and served as the senior executive vice president of finance prior to his upcoming role as CFO.

Company Overview: BankUnited, N.A. is a national bank headquartered in Florida, with total assets of $35.1 billion as of September 2025, offering a wide range of banking products and services.

Operational Footprint: The bank operates in multiple states, including Florida, New York, Dallas, Atlanta, Morristown, New Jersey, and Charlotte, North Carolina, serving various customer segments from individuals to large corporations.