BankUnited, Inc.BKU
BankUnited, Inc. Leases Disclosure
Leases under which the Company is the lessee
The Company leases branches, office space and a small amount of equipment under either operating or finance leases with remaining terms ranging from one to 11 years, some of which include extension options.
The following table presents ROU assets and lease liabilities at the dates indicated (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| ROU assets: | |||||||||||
| Operating leases | $ | 58,680 | $ | 64,416 | |||||||
| Finance leases | 17,978 | 20,290 | |||||||||
| $ | 76,658 | $ | 84,706 | ||||||||
| Lease liabilities: | |||||||||||
| Operating leases | $ | 65,368 | $ | 71,979 | |||||||
| Finance leases | 22,883 | 24,629 | |||||||||
| $ | 88,251 | $ | 96,608 | ||||||||
ROU assets and lease liabilities for operating leases are included in "" and "", respectively, in the accompanying consolidated balance sheets. ROU assets and lease liabilities for finance leases are included in "" and "", respectively.
The weighted average remaining lease term and weighted average discount rate at the dates indicated were:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Weighted average remaining lease term: | |||||||||||
| Operating leases | 5.7 years | 6.2 years | |||||||||
| Finance leases | 7.9 years | 8.8 years | |||||||||
| Weighted average discount rate: | |||||||||||
| Operating leases | 3.9 | % | 3.8 | % | |||||||
| Finance leases | 2.9 | % | 2.9 | % | |||||||
The following table presents the components of lease expense for the periods indicated (in thousands):
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease cost: | |||||||||||||||||
| Fixed costs | $ | 16,117 | $ | 16,624 | $ | 16,761 | |||||||||||
| Impairment of ROU assets | 207 | 54 | 76 | ||||||||||||||
| Total operating lease cost | $ | 16,324 | $ | 16,678 | $ | 16,837 | |||||||||||
| Finance lease cost: | |||||||||||||||||
| Amortization of ROU assets | $ | 2,501 | $ | 2,240 | $ | 2,228 | |||||||||||
| Interest on lease liabilities | 702 | 734 | 778 | ||||||||||||||
| Total finance lease cost | $ | 3,203 | $ | 2,974 | $ | 3,006 | |||||||||||
| Variable lease cost | $ | 3,474 | $ | 3,733 | $ | 3,440 | |||||||||||
Short-term lease costs were immaterial for the years ended December 31, 2025, 2024 and 2023.
The following table presents additional information related to operating and finance leases for the dates and periods indicated (in thousands):
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from finance leases | $ | 702 | $ | 734 | $ | 778 | |||||||||||
| Operating cash flows from operating leases | 16,963 | 17,055 | 17,680 | ||||||||||||||
| Financing cash flows from finance leases | 2,424 | 2,277 | 2,666 | ||||||||||||||
| $ | 20,089 | $ | 20,066 | $ | 21,124 | ||||||||||||
| Lease liabilities recognized from obtaining ROU assets: | |||||||||||||||||
| Operating leases | $ | 8,245 | $ | 13,538 | $ | 6,896 | |||||||||||
| Finance leases | 190 | 892 | — | ||||||||||||||
| $ | 8,435 | $ | 14,430 | $ | 6,896 | ||||||||||||
Future lease payment obligations under leases with terms in excess of one year and a reconciliation to lease liabilities as of December 31, 2025 were as follows (in thousands):
| Operating Leases | Finance Leases | Total | |||||||||||||||
| Years ending December 31: | |||||||||||||||||
| 2026 | $ | 17,172 | $ | 3,202 | $ | 20,374 | |||||||||||
| 2027 | 14,295 | 2,968 | 17,263 | ||||||||||||||
| 2028 | 11,649 | 3,058 | 14,707 | ||||||||||||||
| 2029 | 8,577 | 3,170 | 11,747 | ||||||||||||||
| 2030 | 6,097 | 3,212 | 9,309 | ||||||||||||||
| Thereafter | 15,293 | 10,093 | 25,386 | ||||||||||||||
| Total future minimum lease payments | 73,083 | 25,703 | 98,786 | ||||||||||||||
| Less: interest component | (7,715) | (2,820) | (10,535) | ||||||||||||||
| Lease liabilities | $ | 65,368 | $ | 22,883 | $ | 88,251 | |||||||||||
Leases under which the Company is the lessor
Direct or Sales Type Financing Leases
The following table presents the components of the investment in direct or sales type financing leases, included in loans in the consolidated balance sheets at the dates indicated (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Total minimum lease payments to be received | $ | 403,831 | $ | 489,336 | |||||||
| Estimated unguaranteed residual value of leased assets | 2,393 | 3,112 | |||||||||
| Gross investment in direct or sales type financing leases | 406,224 | 492,448 | |||||||||
| Unearned income | (26,203) | (34,270) | |||||||||
| Initial direct costs | 626 | 1,001 | |||||||||
| $ | 380,647 | $ | 459,179 | ||||||||
At December 31, 2025, future minimum lease payments to be received under direct or sales type financing leases were as follows (in thousands):
| Years Ending December 31: | |||||
| 2026 | $ | 142,505 | |||
| 2027 | 89,788 | ||||
| 2028 | 60,168 | ||||
| 2029 | 26,246 | ||||
| 2030 | 19,387 | ||||
| Thereafter | 65,737 | ||||
| $ | 403,831 | ||||
Operating Lease Equipment
Operating lease equipment consists primarily of railcars, non-commercial aircraft and other transportation equipment leased to commercial end users. Original lease terms generally range from to fifteen years. Asset risk is evaluated and managed by a dedicated internal staff of seasoned equipment finance professionals. The Company has partnered with an industry leading, experienced service provider who provides fleet management and servicing relating to the railcar fleet. Residual risk is managed by setting appropriate residual values at inception and systematic reviews of residual values based on independent appraisals, performed at least annually.
The following table presents the components of operating lease equipment at the dates indicated (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Operating lease equipment | $ | 271,187 | $ | 339,165 | |||||||
| Less: accumulated depreciation | (99,816) | (115,321) | |||||||||
| Operating lease equipment, net | $ | 171,371 | $ | 223,844 | |||||||
The Company did not recognize any impairment of operating lease equipment during the years ended December 31, 2025, 2024 and 2023.
At December 31, 2025, scheduled minimum rental payments under operating leases were as follows (in thousands):
| Years Ending December 31: | |||||
| 2026 | $ | 9,534 | |||
| 2027 | 9,102 | ||||
| 2028 | 8,179 | ||||
| 2029 | 5,173 | ||||
| 2030 | 4,729 | ||||
| Thereafter | 8,494 | ||||
| $ | 45,211 | ||||
The following table summarizes income recognized for operating and direct or sales type finance leases for the periods indicated (in thousands):
| Years Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | 2023 | Location of Lease Income on Consolidated Statements of Income | ||||||||||||||||||||
| Operating leases | $ | 15,658 | $ | 24,681 | $ | 47,868 | |||||||||||||||||
| Direct or sales type finance leases | 11,385 | 15,148 | 15,643 | ||||||||||||||||||||
| $ | 27,043 | $ | 39,829 | $ | 63,511 | ||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.