BankUnited, Inc. (the "Company") (NYSE:BKU) today announced financial results for the quarter ended June 30, 2023.

"As volatility in the capital markets recedes and the economy remains resilient, we have returned our focus to executing on our long term strategy of building a relationship oriented bank," said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended June 30, 2023, the Company reported net income of $58.0 million, or $0.78 per diluted share, compared to $52.9 million, or $0.70 per diluted share for the immediately preceding quarter ended March 31, 2023 and $65.8 million, or $0.82 per diluted share, for the quarter ended June 30, 2022. For the six months ended June 30, 2023, the Company reported net income of $110.9 million or $1.48 per diluted share compared to $132.9 million or $1.60 per diluted share for the six months ended June 30, 2022.

Quarterly Highlights

Total deposits grew by $116 million during the quarter ended June 30, 2023. Non-interest bearing deposits remained largely consistent as a percentage of deposits, representing 28.3% of total deposits at June 30, 2023 compared to 28.6% at March 31, 2023, declining by $62 million for the quarter.

Our liquidity position remains strong, and improved over the course of the second quarter. At June 30, 2023, total same day available liquidity had increased to $14.7 billion from $9.4 billion at March 31, 2023. The available liquidity to uninsured, uncollateralized deposits ratio improved to 167% at June 30, 2023 from 95% at March 31, 2023 while the portion of our deposits that were insured or collateralized grew to 66% at June 30, 2023 from 62% at March 31, 2023.

We made progress in reducing wholesale funding as outstanding FHLB advances were down $1.6 billion quarter-over-quarter.

Net interest income and the net interest margin for the quarter ended June 30, 2023 were impacted by an increase in the cost of funds which more than offset the increased yield on interest-earning assets. A challenging deposit growth environment and a higher level of on-balance sheet liquidity for much of the quarter led to increased reliance on higher cost deposits and wholesale funding. The net interest margin, calculated on a tax-equivalent basis, was 2.47% for the quarter ended June 30, 2023, compared to 2.62% for the immediately preceding quarter ended March 31, 2023 and 2.63% for the quarter ended June 30, 2022. Net interest income decreased by $14.0 million, compared to the immediately preceding quarter ended March 31, 2023 and by $11.5 million compared to the quarter ended June 30, 2022.

Consistent with industry trends, rising interest rates and tighter liquidity conditions contributed to an increase in the average cost of total deposits to 2.46% for the quarter ended June 30, 2023 from 2.05% for the immediately preceding quarter. This increase of 0.41% was smaller than the 0.63% increase in the cost of deposits for the quarter ended March 31, 2023. The yield on average interest earning assets increased to 5.30% for the quarter ended June 30, 2023 from 5.05% for the immediately preceding quarter.

Total loans declined by $263 million quarter-over-quarter. Most of the decline was attributable to residential which was down by $184 million. Consistent with our strategy to re-position the composition of the balance sheet, cash flows from the residential portfolio were used to pay down wholesale funding.

Credit remains favorable. The NPA ratio at June 30, 2023 was 0.34%, including 0.10% related to the guaranteed portion of non-performing SBA loans compared to 0.32%, including 0.10% related to the guaranteed portion of non-performing SBA loans at March 31, 2023. The annualized net charge-off ratio for the six months ended June 30, 2023 was 0.09%.

Reflecting management's concentration risk management strategy, commercial real estate exposure is modest. Commercial real estate loans totaled 23% of loans at June 30, 2023, representing 169% of the Bank's total risk based capital. At June 30, 2023, the weighted average LTV of the CRE portfolio was 57.1% and the weighted average DSCR was 1.88. 60% of the portfolio was secured by collateral properties located in Florida and 25% was secured by properties in the New York tri-state area.

For the quarter ended June 30, 2023, the provision for credit losses was $15.5 million compared to provisions of $19.8 million and $24.0 million for the quarters ended March 31, 2023 and June 30, 2022, respectively. The ratio of the ACL to total loans increased to 0.68%, at June 30, 2023 from 0.64% at March 31, 2023, reflecting the impact on modeling expected credit losses of a less favorable Moody's baseline economic forecast and heavier weighting of a downside scenario in calculating the ACL.

We remain committed to keeping the duration of our securities portfolio short; the duration of the available for sale securities portfolio was 1.94 at June 30, 2023. Held to maturity securities were not significant.

Our capital position is robust. CET1 was 11.2% at the holding company and 13.0% at the Bank at June 30, 2023. Pro-forma CET1 at the holding company and the Bank, including accumulated other comprehensive income, were 9.7% and 11.5%, respectively.

Book value and tangible book value per common share improved to $33.94 and $32.90, respectively, at June 30, 2023, from $33.34 and $32.30, respectively at March 31, 2023.

Deposits and Funding

Total deposits grew by $116 million during the quarter ended June 30, 2023. Non-interest bearing demand deposits declined by $62 million, interest-bearing non-maturity deposits declined by $92 million and time deposits grew by $270 million. Account level deposit flows throughout the quarter generally appeared to be within the range of what we consider normal operating activity.

Consistent with the current interest rate environment and monetary policy stance, the cost of total deposits increased to 2.46% from 2.05% for the immediately preceding quarter, while the cost of interest bearing deposits increased to 3.39% for the quarter ended June 30, 2023 from 2.86% for the preceding quarter.

FHLB advances declined by $1.6 billion for the quarter, as we used cash flows generated by the residential and securities portfolios to reduce wholesale funding levels and allow for future re-deployment of capital into higher yielding assets.

Loans

A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):

	June 30, 2023				March 31, 2023				December 31, 2022
Residential	$	8,605,838	34.9	%	$	8,789,744	35.3	%	$	8,900,714	35.7	%
Non-owner occupied commercial real estate		5,302,523	21.5	%		5,346,895	21.5	%		5,405,597	21.7	%
Construction and land		393,464	1.6	%		324,805	1.3	%		294,360	1.2	%
Owner occupied commercial real estate		1,832,586	7.4	%		1,863,333	7.5	%		1,890,813	7.6	%
Commercial and industrial		6,575,368	26.8	%		6,617,716	26.5	%		6,417,721	25.9	%
Pinnacle - municipal finance		951,529	3.9	%		919,584	3.7	%		912,122	3.7	%
Franchise finance		207,783	0.8	%		239,205	1.0	%		253,774	1.0	%
Equipment finance		237,816	1.0	%		266,715	1.1	%		286,147	1.1	%
Mortgage warehouse lending ("MWL")		523,083	2.1	%		524,897	2.1	%		524,740	2.1	%
	$	24,629,990	100.0	%	$	24,892,894	100.0	%	$	24,885,988	100.0	%

For the quarter ended June 30, 2023, residential declined by $184 million, C&I and CRE declined by $49 million in total, franchise and equipment finance declined by $60 million in aggregate and municipal finance grew by $32 million.

Asset Quality and the Allowance for Credit Losses ("ACL")

Non-performing loans totaled $118.7 million or 0.48% of total loans at June 30, 2023, compared to $114.2 million or 0.46% of total loans at March 31, 2023. Non-performing loans included $35.9 million and $36.9 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.15% of total loans at both June 30, 2023 and March 31, 2023.

The following table presents criticized and classified commercial loans at the dates indicated (in thousands):

	June 30, 2023		March 31, 2023		December 31, 2022
Special mention	$	233,004	$	101,781	$	51,433
Substandard - accruing		525,643		596,054		605,965
Substandard - non-accruing		80,642		82,840		75,125
Doubtful		14,954		7,699		7,990
Total	$	854,243	$	788,374	$	740,513

One $22 million loan that was moved to special mention during the quarter paid off shortly after quarter-end.

The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the periods ended June 30, 2023, March 31, 2023 and December 31, 2022 (dollars in thousands):

			ACL to Total		ACL to Non-		Net Charge-offs to
	ACL		Loans		Performing Loans		Average Loans ⁽¹⁾
December 31, 2022	$	147,946	0.59	%	140.88	%	0.22	%
March 31, 2023	$	158,792	0.64	%	139.01	%	0.08	%
June 30, 2023	$	166,833	0.68	%	140.52	%	0.09	%

(1) Annualized for the three months ended March 31, 2023 and the six months ended June 30, 2023.

The ACL at June 30, 2023 represents management's estimate of lifetime expected credit losses given an assessment of historical data, current conditions, and a reasonable and supportable economic forecast as of the balance sheet date. For the quarter ended June 30, 2023, the provision for credit losses was $15.5 million, including $14.2 million related to funded loans. The more significant factors impacting the provision for credit losses and increase in the ACL for the quarter ended June 30, 2023 were a less favorable Moody's baseline economic forecast and heavier weighting of a downside scenario.

The following table summarizes the activity in the ACL for the periods indicated (in thousands):

	Three Months Ended									Six Months Ended
	June 30, 2023			March 31, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Beginning balance	$	158,792		$	147,946		$	125,443		$	147,946		$	126,457
Impact of adoption of new accounting pronouncement (ASU 2022-02)		N/A			(1,794	)		N/A			(1,794	)		N/A
Balance after impact of adoption of new accounting pronouncement (ASU 2022-02)		158,792			146,152			125,443			146,152			126,457
Provision		14,195			17,595			23,207			31,790			30,653
Net charge-offs		(6,154	)		(4,955	)		(18,411	)		(11,109	)		(26,871	)
Ending balance	$	166,833		$	158,792		$	130,239		$	166,833		$	130,239

Net Interest Income

Net interest income for the quarter ended June 30, 2023 was $213.9 million, compared to $227.9 million for the immediately preceding quarter ended March 31, 2023 and $225.4 million for the quarter ended June 30, 2022. Interest income increased by $23.0 million for the quarter ended June 30, 2023 compared to the immediately preceding quarter while interest expense increased by $37.0 million.

The Company's net interest margin, calculated on a tax-equivalent basis, decreased by 0.15% to 2.47% for the quarter ended June 30, 2023, from 2.62% for the immediately preceding quarter ended March 31, 2023. Overall, the net interest margin was negatively impacted by an increase in the cost of interest-bearing deposits and FHLB advances, more than offsetting the increased yield on interest earning assets. A decline in average non-interest bearing deposits and an increase in on-balance sheet liquidity contributed to an increase in higher-cost funding.

More detail about certain factors impacting the net interest margin for the quarter ended June 30, 2023 follows:

The tax-equivalent yield on investment securities increased to 5.19% for the quarter ended June 30, 2023, from 4.95% for the quarter ended March 31, 2023. This increase resulted primarily from the reset of coupon rates on variable rate securities.

The tax-equivalent yield on loans increased to 5.35% for the quarter ended June 30, 2023, from 5.10% for the quarter ended March 31, 2023. The resetting of variable rate loans to higher coupon rates and origination of new loans at higher rates contributed to the increase.

The average cost on interest bearing deposits increased to 3.39% for the quarter ended June 30, 2023 from 2.86% for the quarter ended March 31, 2023, as a result of the rising interest rate environment, tightening liquidity conditions and the shift from non-interest bearing deposits to deposits priced at current, higher market rates.

The average rate paid on FHLB advances increased to 4.59% for the quarter ended June 30, 2023, from 4.27% for the quarter ended March 31, 2023, primarily due to higher prevailing rates, partially offset by the impact of cash flow hedges.

Non-interest income and Non-interest expense

Non-interest income totaled $25.5 million for the quarter ended June 30, 2023, compared to $16.5 million for the quarter ended March 31, 2023 and $13.5 million for the quarter ended June 30, 2022. This increase over the comparable quarters was primarily attributable to losses on certain preferred equity investments of $13.3 million and $9.3 million during the quarters ended March 31, 2023 and June 30, 2022, respectively.

Non-interest expense totaled $145.2 million for the quarter ended June 30, 2023, compared to $152.8 million for the immediately preceding quarter ended March 31, 2023 and $127.4 million for the quarter ended June 30, 2022. The quarter over quarter decline in compensation and benefits reflected expected seasonal fluctuations in payroll taxes and benefits. The quarter over quarter decline in other non-interest expense was impacted by $4.4 million in certain operational losses recognized during the quarter ended March 31, 2023. Costs related to deposit rebate and commission programs increased by $7.2 million for the quarter ended June 30, 2023 compared to the second quarter of the prior year.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Tuesday, July 25, 2023 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.

The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BIe6f3323769d343d48b39c8774b18f417. For those unable to join the live event, an archived webcast will be available in the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.

About BankUnited, Inc.

BankUnited, Inc., with total assets of $35.9 billion at June 30, 2023, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida that provides a full range of banking and related services to individual and corporate customers through banking centers located in the state of Florida, New York metropolitan area and Dallas, Texas, and a comprehensive suite of wholesale products to customers through an Atlanta office focused on the Southeast region. BankUnited also offers certain commercial lending and deposit products through national platforms. For additional information, call (877) 779-2265 or visit www.BankUnited.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to, among other things, future events and financial performance.

The Company generally identifies forward-looking statements by terminology such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "could," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company's current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company's operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control, such as adverse events impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, the Company's actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC's website (www.sec.gov).

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data)

	June 30,			December 31,
	2023			2022
ASSETS
Cash and due from banks:
Non-interest bearing	$	18,355		$	16,068
Interest bearing		282,814			556,579
Cash and cash equivalents		301,169			572,647
Investment securities (including securities reported at fair value of $9,133,937 and $9,745,327)		9,143,937			9,755,327
Non-marketable equity securities		317,759			294,172
Loans		24,629,990			24,885,988
Allowance for credit losses		(166,833	)		(147,946	)
Loans, net		24,463,157			24,738,042
Bank owned life insurance		318,935			308,212
Operating lease equipment, net		514,734			539,799
Goodwill		77,637			77,637
Other assets		734,151			740,876
Total assets	$	35,871,479		$	37,026,712

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits:
Non-interest bearing	$	7,304,735		$	8,037,848
Interest bearing		2,929,870			2,142,067
Savings and money market		10,084,276			13,061,341
Time		5,519,771			4,268,078
Total deposits		25,838,652			27,509,334
Federal funds purchased		—			190,000
FHLB advances		5,975,000			5,420,000
Notes and other borrowings		715,302			720,923
Other liabilities		816,215			750,474
Total liabilities		33,345,169			34,590,731

Commitments and contingencies

Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,429,948 and 75,674,587 shares issued and outstanding		744			757
Paid-in capital		274,202			321,729
Retained earnings		2,623,926			2,551,400
Accumulated other comprehensive loss		(372,562	)		(437,905	)
Total stockholders' equity		2,526,310			2,435,981
Total liabilities and stockholders' equity	$	35,871,479		$	37,026,712

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)

	Three Months Ended								Six Months Ended
	June 30,		March 31,			June 30,			June 30,			June 30,
	2023		2023			2022			2023			2022
Interest income:
Loans	$	326,153	$	308,795		$	209,223		$	634,948		$	400,785
Investment securities		120,604		118,758			54,771			239,362			97,819
Other		16,664		12,863			2,979			29,527			4,333
Total interest income		463,421		440,416			266,973			903,837			502,937
Interest expense:
Deposits		156,868		133,630			20,501			290,498			32,363
Borrowings		92,675		78,912			21,056			171,587			36,516
Total interest expense		249,543		212,542			41,557			462,085			68,879
Net interest income before provision for credit losses		213,878		227,874			225,416			441,752			434,058
Provision for credit losses		15,517		19,788			23,996			35,305			31,826
Net interest income after provision for credit losses		198,361		208,086			201,420			406,447			402,232
Non-interest income:
Deposit service charges and fees		5,349		5,545			5,896			10,894			11,856
Gain (loss) on investment securities, net		993		(12,549	)		(8,392	)		(11,556	)		(16,260	)
Lease financing		12,519		13,109			13,363			25,628			26,778
Other non-interest income		6,626		10,430			2,583			17,056			5,377
Total non-interest income		25,487		16,535			13,450			42,022			27,751
Non-interest expense:
Employee compensation and benefits		67,414		71,051			62,461			138,465			129,549
Occupancy and equipment		11,043		10,802			11,399			21,845			22,911
Deposit insurance expense		7,597		7,907			3,993			15,504			7,396
Professional fees		3,518		2,918			3,256			6,436			5,518
Technology		20,437		21,726			17,898			42,163			34,902
Depreciation of operating lease equipment		11,232		11,521			12,585			22,753			25,195
Other non-interest expense		23,977		26,855			15,810			50,832			28,255
Total non-interest expense		145,218		152,780			127,402			297,998			253,726
Income before income taxes		78,630		71,841			87,468			150,471			176,257
Provision for income taxes		20,634		18,959			21,704			39,593			43,343
Net income	$	57,996	$	52,882		$	65,764		$	110,878		$	132,914
Earnings per common share, basic	$	0.78	$	0.71		$	0.82		$	1.49		$	1.61
Earnings per common share, diluted	$	0.78	$	0.70		$	0.82		$	1.48		$	1.60

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)

	Three Months Ended June 30,							Three Months Ended March 31,							Three Months Ended June 30,
	2023							2023							2022
	Average					Yield/		Average					Yield/		Average					Yield/
	Balance			Interest ⁽¹⁾		Rate ⁽¹⁾⁽²⁾		Balance			Interest ⁽¹⁾		Rate ⁽¹⁾⁽²⁾		Balance			Interest ⁽¹⁾		Rate ⁽¹⁾⁽²⁾
Assets:
Interest earning assets:
Loans	$	24,680,919		$	329,494	5.35	%	$	24,724,296		$	312,125	5.10	%	$	23,709,190		$	212,395	3.59	%
Investment securities ⁽³⁾		9,369,019			121,520	5.19	%		9,672,514			119,666	4.95	%		10,477,600			55,488	2.12	%
Other interest earning assets		1,323,025			16,664	5.05	%		1,039,563			12,863	5.02	%		718,904			2,979	1.66	%
Total interest earning assets		35,372,963			467,678	5.30	%		35,436,373			444,654	5.05	%		34,905,694			270,862	3.11	%
Allowance for credit losses		(162,463	)						(151,071	)						(127,864	)
Non-interest earning assets		1,744,693							1,793,000							1,669,689
Total assets	$	36,955,193						$	37,078,302						$	36,447,519
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits	$	2,772,839		$	18,417	2.66	%	$	2,283,505		$	10,545	1.87	%	$	2,576,257		$	1,742	0.27	%
Savings and money market deposits		10,285,494			88,892	3.47	%		12,145,922			91,724	3.06	%		13,052,566			15,213	0.47	%
Time deposits		5,494,631			49,559	3.62	%		4,526,480			31,361	2.81	%		2,812,988			3,546	0.51	%
Total interest bearing deposits		18,552,964			156,868	3.39	%		18,955,907			133,630	2.86	%		18,441,811			20,501	0.45	%
Federal funds purchased		—			—	—	%		143,580			1,611	4.49	%		115,146			155	0.53	%
FHLB advances		7,288,187			83,429	4.59	%		6,465,000			68,039	4.27	%		4,373,736			11,644	1.07	%
Notes and other borrowings		719,368			9,246	5.14	%		720,906			9,262	5.14	%		721,284			9,257	5.13	%
Total interest bearing liabilities		26,560,519			249,543	3.77	%		26,285,393			212,542	3.28	%		23,651,977			41,557	0.70	%
Non-interest bearing demand deposits		7,067,053							7,458,221							9,419,025
Other non-interest bearing liabilities		798,279							821,419							654,162
Total liabilities		34,425,851							34,565,033							33,725,164
Stockholders' equity		2,529,342							2,513,269							2,722,355
Total liabilities and stockholders' equity	$	36,955,193						$	37,078,302						$	36,447,519
Net interest income				$	218,135						$	232,112						$	229,305
Interest rate spread						1.53	%						1.77	%						2.41	%
Net interest margin						2.47	%						2.62	%						2.63	%

(1) On a tax-equivalent basis where applicable
(2) Annualized
(3) At fair value except for securities held to maturity

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)

	Six Months Ended June 30,
	2023							2022
	Average					Yield/		Average					Yield/
	Balance			Interest ⁽¹⁾		Rate ⁽¹⁾⁽²⁾		Balance			Interest ⁽¹⁾		Rate ⁽¹⁾⁽²⁾
Assets:
Interest earning assets:
Loans	$	24,702,487		$	641,617	5.22	%	$	23,530,162		$	406,946	3.47	%
Investment securities ⁽³⁾		9,519,928			241,187	5.07	%		10,281,431			99,207	1.93	%
Other interest earning assets		1,182,077			29,527	5.04	%		696,894			4,333	1.25	%
Total interest earning assets		35,404,492			912,331	5.18	%		34,508,487			510,486	2.97	%
Allowance for credit losses		(156,798	)						(128,443	)
Non-interest earning assets		1,768,714							1,672,070
Total assets	$	37,016,408						$	36,052,114
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits	$	2,570,422		$	29,291	2.30	%	$	2,825,830		$	3,111	0.22	%
Savings and money market deposits		11,169,671			180,287	3.25	%		13,225,986			22,866	0.35	%
Time deposits		5,013,230			80,920	3.26	%		3,064,887			6,386	0.42	%
Total interest bearing deposits		18,753,323			290,498	3.12	%		19,116,703			32,363	0.34	%
Federal funds purchased		71,393			1,611	4.51	%		151,074			213	0.28	%
FHLB advances		6,878,867			151,467	4.44	%		3,317,182			17,790	1.08	%
Notes and other borrowings		720,133			18,509	5.14	%		721,344			18,513	5.13	%
Total interest bearing liabilities		26,423,716			462,085	3.53	%		23,306,303			68,879	0.59	%
Non-interest bearing demand deposits		7,261,557							9,234,469
Other non-interest bearing liabilities		809,785							638,767
Total liabilities		34,495,058							33,179,539
Stockholders' equity		2,521,350							2,872,575
Total liabilities and stockholders' equity	$	37,016,408						$	36,052,114
Net interest income				$	450,246						$	441,607
Interest rate spread						1.65	%						2.38	%
Net interest margin						2.55	%						2.57	%

(1) On a tax-equivalent basis where applicable
(2) Annualized
(3) At fair value except for securities held to maturity

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Basic earnings per common share:
Numerator:
Net income	$	57,996		$	65,764		$	110,878		$	132,914
Distributed and undistributed earnings allocated to participating securities		(881	)		(999	)		(1,679	)		(1,927	)
Income allocated to common stockholders for basic earnings per common share	$	57,115		$	64,765		$	109,199		$	130,987
Denominator:
Weighted average common shares outstanding		74,424,631			80,300,069			74,588,904			82,629,098
Less average unvested stock awards		(1,183,039	)		(1,257,258	)		(1,188,430	)		(1,234,678	)
Weighted average shares for basic earnings per common share		73,241,592			79,042,811			73,400,474			81,394,420
Basic earnings per common share	$	0.78		$	0.82		$	1.49		$	1.61
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share	$	57,115		$	64,765		$	109,199		$	130,987
Adjustment for earnings reallocated from participating securities		1			3			5			4
Income used in calculating diluted earnings per common share	$	57,116		$	64,768		$	109,204		$	130,991
Denominator:
Weighted average shares for basic earnings per common share		73,241,592			79,042,811			73,400,474			81,394,420
Dilutive effect of certain share-based awards		179,318			350,734			312,708			244,808
Weighted average shares for diluted earnings per common share		73,420,910			79,393,545			73,713,182			81,639,228
Diluted earnings per common share	$	0.78		$	0.82		$	1.48		$	1.60

BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS

	At or for the Three Months Ended									Six Months Ended June 30,
	June 30, 2023			March 31, 2023			June 30, 2022			2023		2022
Financial ratios⁽⁴⁾
Return on average assets		0.63	%		0.58	%		0.72	%	0.60	%	0.74	%
Return on average stockholders' equity		9.2	%		8.5	%		9.7	%	8.9	%	9.3	%
Net interest margin⁽³⁾		2.47	%		2.62	%		2.63	%	2.55	%	2.57	%
Loans to deposits		95.3	%		96.8	%		84.7	%
Tangible book value per common share	$	32.90		$	32.30		$	31.16

	June 30, 2023		December 31, 2022
Asset quality ratios
Non-performing loans to total loans⁽¹⁾⁽⁵⁾	0.48	%	0.42	%
Non-performing assets to total assets ⁽²⁾⁽⁵⁾	0.34	%	0.29	%
Allowance for credit losses to total loans	0.68	%	0.59	%
Allowance for credit losses to non-performing loans⁽¹⁾⁽⁵⁾	140.52	%	140.88	%
Net charge-offs to average loans ⁽⁴⁾	0.09	%	0.22	%

(1)		We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.
(2)		Non-performing assets include non-performing loans, OREO and other repossessed assets.
(3)		On a tax-equivalent basis.
(4)		Annualized for the three and six month periods as applicable.
(5)		Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $35.9 million or 0.15% of total loans and 0.10% of total assets at June 30, 2023 and $40.3 million or 0.16% of total loans and 0.11% of total assets at December 31, 2022.

	June 30, 2023				March 31, 2023				December 31, 2022				Required to be Considered Well Capitalized
	BankUnited, Inc.		BankUnited, N.A.		BankUnited, Inc.		BankUnited, N.A.		BankUnited, Inc.		BankUnited, N.A.		Required to be Considered Well Capitalized
Capital ratios
Tier 1 leverage	7.6	%	8.8	%	7.4	%	8.6	%	7.5	%	8.4	%	5.0	%
Common Equity Tier 1 ("CET1") risk-based capital	11.2	%	13.0	%	10.8	%	12.5	%	11.0	%	12.4	%	6.5	%
Total risk-based capital	13.0	%	13.6	%	12.6	%	13.1	%	12.7	%	12.9	%	10.0	%
Tangible Common Equity/Tangible Assets	6.8	%	N/A		6.5	%	N/A		6.4	%	N/A		N/A

Non-GAAP Financial Measures

Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data):

	June 30, 2023		March 31, 2023		June 30, 2022
Total stockholders' equity	$	2,526,310	$	2,481,394	$	2,506,017
Less: goodwill and other intangible assets		77,637		77,637		77,637
Tangible stockholders' equity	$	2,448,673	$	2,403,757	$	2,428,380

Common shares issued and outstanding		74,429,948		74,423,365		77,944,216

Book value per common share	$	33.94	$	33.34	$	32.15

Tangible book value per common share	$	32.90	$	32.30	$	31.16

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BankUnited, Inc. Reports Second Quarter 2023 Results