BankUnited, Inc. (the "Company") (NYSE:BKU) today announced financial results for the quarter ended September 30, 2024.

"We're happy with third quarter results as our balance sheet transformation story continues. Margin expanded again this quarter and credit remains well managed. Looking forward, we are optimistic about the environment, our markets and opportunities to grow core customer relationships. Our thoughts are with those who were impacted by the recent storms and we are here to support our employees, clients and communities," said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended September 30, 2024, the Company reported net income of $61.5 million, or $0.81 per diluted share, compared to $53.7 million, or $0.72 per diluted share, for the immediately preceding quarter ended June 30, 2024 and $47.0 million, or $0.63 per diluted share, for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, the Company reported net income of $163.2 million, or $2.17 per diluted share compared to $157.9 million, or $2.11 per diluted share for the nine months ended September 30, 2023.

Quarterly Highlights

To date, we have made notable progress executing near-term strategic priorities focused on improving core profitability.

The net interest margin, calculated on a tax-equivalent basis, expanded by 0.06%, to 2.78% for the quarter ended September 30, 2024 from 2.72% for the immediately preceding quarter. The net interest margin was 2.56% for the quarter ended September 30, 2023. For the nine months ended September 30, 2024 the net interest margin improved to 2.69% from 2.55% for the nine months ended September 30, 2023.
The average cost of total deposits declined by 0.03% to 3.06% for the quarter ended September 30, 2024 from 3.09% for the immediately preceding quarter ended June 30, 2024. The spot APY of total deposits declined to 2.93% at September 30, 2024 from 3.09% at June 30, 2024. The average cost of interest bearing deposits declined by 0.06% to 4.20% for the quarter ended September 30, 2024 from 4.26% for the immediately preceding quarter ended June 30, 2024 while the spot APY of interest bearing deposits declined to 4.01% at September 30, 2024 from 4.29% at June 30, 2024.
The Company's funding profile has improved significantly over the course of 2024. For the nine months ended September 30, 2024, wholesale funding, including FHLB advances and brokered deposits, declined by $1.9 billion while non-brokered deposits grew by $1.7 billion, including an increase of $800 million in non-interest bearing demand deposits ("NIDDA").
Average NIDDA remained relatively stable, declining by $64 million for the quarter, consistent with the prior quarter at 27% of average total deposits. Total deposits grew by $93 million for the quarter ended September 30, 2024. In part due to expected seasonal trends, for the quarter ended September 30, 2024, NIDDA declined by $430 million, and represented 27% of total deposits at September 30, 2024.
FHLB advances increased by $295 million for the quarter ended September 30, 2024; this increase was related to intraday cash management and transactional deposit flows on the last day of the quarter and is also reflected in temporarily elevated cash balances. Brokered deposits grew by $303 million for the quarter; we took advantage of favorable pricing in the brokered deposit market during a period of market dislocation.
For the nine months ended September 30, 2024, our core CRE and C&I loan portfolios grew by $286 million while residential loans declined by $422 million and franchise, equipment and municipal finance declined by a combined $238 million.
Total loans declined by $230 million for the quarter ended September 30, 2024. The commercial real estate segment grew by $34 million while the C&I segment declined by $112 million. Mortgage warehouse grew by $33 million. Consistent with our balance sheet strategy, the residential, franchise, equipment and municipal finance portfolios declined by a combined $185 million.
The loan to deposit ratio declined to 87.6% at September 30, 2024, from 88.7% at June 30, 2024 and 92.8% at December 31, 2023.
Net charge-offs remained low and were $6.5 million for the quarter. The annualized net charge-off ratio for the nine months ended September 30, 2024 was 0.12%. The NPA ratio at September 30, 2024 was 0.64%, including 0.10% related to the guaranteed portion of non-accrual SBA loans, compared to 0.50%, including 0.11% related to the guaranteed portion of non-accrual SBA loans at June 30, 2024. The quarter-over-quarter increase was primarily related to two C&I loans.
The ratio of the ACL to total loans increased to 0.94% at September 30, 2024; the ratio of the ACL to non-performing loans was 101.68%. The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.41% at September 30, 2024 and the ACL to loans ratio for CRE office loans was 2.20%.
Our commercial real estate exposure is modest, totaling 25% of loans and 164% of the Bank's total risk based capital at September 30, 2024. By comparison, based on call report data as of June 30, 2024 (the most recent date available) for banks with between $10 billion and $100 billion in assets, the median level of CRE to total loans was 35% and the median level of CRE to total risk based capital was 220%.
At September 30, 2024, the weighted average LTV of the CRE portfolio was 55.3%, the weighted average DSCR was 1.77, 56% of the portfolio was collateralized by properties located in Florida and 25% was collateralized by properties located in the New York tri-state area. For the office sub-segment, the weighted average LTV was 65.4%, the weighted average DSCR was 1.56, 57% was collateralized by properties in Florida, substantially all of which was suburban, and 23% was collateralized by properties located in the New York tri-state area.
Liquidity remains ample. Total same day available liquidity was $15.0 billion, the available liquidity to uninsured, uncollateralized deposits ratio was 147% and an estimated 63% of our deposits were insured or collateralized at September 30, 2024.
Our capital position is robust. At September 30, 2024, CET1 was 11.8% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was 10.9% at September 30, 2024. The ratio of tangible common equity to tangible assets increased to 7.6% at September 30, 2024.
The net unrealized pre-tax loss on the available for sale ("AFS") securities portfolio continued to improve, declining by $125 million, to 4% of amortized cost, for the quarter ended September 30, 2024. The duration of our AFS securities portfolio remained short, at 1.73 as of September 30, 2024. Held to maturity securities were not significant.
Book value and tangible book value per common share continued to grow, to $37.56 and $36.52, respectively, at September 30, 2024, compared to $36.11 and $35.07, respectively, at June 30, 2024, and $34.66 and $33.62, respectively at December 31, 2023.
Beth Hosen, an industry veteran and proven leader, joined BankUnited in September as executive vice president and head of treasury management, overseeing treasury management sales, service and product as well as the commercial card business.

Hurricane Helene made landfall along Florida's "Big Bend" coast in September, 2024, ultimately impacting parts of the Southeastern United States. The impact of Hurricane Helene on BankUnited's operations was not significant, and is not expected to be significant to our financial condition or results of operations. Hurricane Milton made landfall near Siesta Key, Florida in October, bringing heavy rain, hurricane or tropical storm force winds, storm surge and power outages to portions of the Florida peninsula. All of our branches and office locations have re-opened for business, and damage from the storm was negligible. There were no significant impacts to banking operations. We are still in the process of finalizing our assessment of the potential impact of Hurricane Milton on our customers and credit portfolio.

Loans

Loan portfolio composition at the dates indicated follows (dollars in thousands):

	September 30, 2024				June 30, 2024				December 31, 2023
Core C&I and CRE sub-segments:
Non-owner occupied commercial real estate	$	5,488,884	22.5	%	$	5,367,663	21.8	%	$	5,323,241	21.6	%
Construction and land		497,928	2.0	%		584,833	2.4	%		495,992	2.0	%
Owner occupied commercial real estate		1,999,515	8.2	%		1,966,809	8.0	%		1,935,743	7.9	%
Commercial and industrial		7,026,412	28.9	%		7,170,622	29.1	%		6,971,981	28.3	%
		15,012,739	61.6	%		15,089,927	61.3	%		14,726,957	59.8	%
Franchise and equipment finance		277,704	1.1	%		307,442	1.2	%		380,347	1.5	%
Pinnacle - municipal finance		749,035	3.1	%		847,234	3.4	%		884,690	3.6	%
Mortgage warehouse lending ("MWL")		571,783	2.3	%		539,159	2.2	%		432,663	1.8	%
Residential		7,787,442	31.9	%		7,844,722	31.9	%		8,209,027	33.3	%
	$	24,398,703	100.0	%	$	24,628,484	100.0	%	$	24,633,684	100.0	%

For the quarter ended September 30, 2024, total loans declined by $230 million. The CRE portfolio grew by $34 million and MWL grew by $33 million while the C&I portfolio declined by $112 million. Consistent with our balance sheet strategy, the franchise, equipment, and municipal finance portfolios declined by an aggregate $128 million and residential loans declined by $57 million. The decline in C&I for the quarter was impacted by the timing of some unanticipated payoffs and strategic exits.

Asset Quality and the ACL

The following table presents information about the ACL at the dates indicated as well as net charge-off rates for the periods ended September 30, 2024, June 30, 2024 and December 31, 2023 (dollars in thousands):

	ACL		ACL to Total Loans		Commercial ACL to Commercial Loans⁽²⁾		ACL to Non-Performing Loans		Net Charge-offs to Average Loans ⁽¹⁾
December 31, 2023	$	202,689	0.82	%	1.29	%	159.54	%	0.09	%
June 30, 2024	$	225,698	0.92	%	1.42	%	130.12	%	0.12	%
September 30, 2024	$	228,249	0.94	%	1.41	%	101.68	%	0.12	%

_________________________
(1)		Annualized for the six months ended June 30, 2024 and the nine months ended September 30, 2024.
(2)		For purposes of this ratio, commercial loans includes the core C&I and CRE sub-segments as presented in the table above as well as franchise and equipment finance. Due to their unique risk profiles, MWL and municipal finance are excluded from this ratio.

The ACL at September 30, 2024 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 September 30, 2024, the provision for credit losses, including both funded and unfunded loan commitments, was $9.2 million, compared to $19.5 million for the immediately preceding quarter ended June 30, 2024. For the quarter ended September 30, 2024, an increase in qualitative overlays, changes in portfolio characteristics, and updates to certain assumptions had the effect of increasing the ACL, while the impact of improvements in the economic forecast partially offset that increase.

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

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Beginning balance	$	225,698		$	217,556		$	166,833		$	202,689		$	147,946
Impact of adoption of new accounting pronouncement (ASU 2022-02)		N/A			N/A			N/A			N/A			(1,794	)
Balance after impact of adoption of ASU 2022-02		225,698			217,556			166,833			202,689			146,152
Provision		9,091			21,823			30,877			46,719			62,667
Net charge-offs		(6,540	)		(13,681	)		(1,647	)		(21,159	)		(12,756	)
Ending balance	$	228,249		$	225,698		$	196,063		$	228,249		$	196,063

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

	September 30, 2024				June 30, 2024				December 31, 2023
	CRE		Total Commercial		CRE		Total Commercial		CRE		Total Commercial
Special mention	$	145,338	$	323,326	$	138,403	$	265,940	$	97,552	$	319,905
Substandard - accruing		587,097		932,746		597,888		946,832		390,724		711,266
Substandard - non-accruing		70,860		186,565		54,088		131,193		13,727		86,903
Doubtful		—		16,265		8,301		25,258		—		19,035
Total	$	803,295	$	1,458,902	$	798,680	$	1,369,223	$	502,003	$	1,137,109

Total criticized and classified commercial loans increased by $90 million for the quarter ended September 30, 2024. The increase in the substandard non-accruing category for the quarter ended September 30, 2024 was primarily related to two C&I loans.

Non-performing loans totaled $224.5 million or 0.92% of total loans at September 30, 2024, compared to $173.5 million or 0.70% of total loans at June 30, 2024. Non-performing loans included $35.1 million and $39.0 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.14% and 0.16% of total loans at September 30, 2024 and June 30, 2024, respectively.

Net Interest Income

Net interest income for the quarter ended September 30, 2024 was $234.1 million, compared to $226.0 million for the immediately preceding quarter ended June 30, 2024, an increase of 4%. Interest income increased by $9.1 million for the quarter ended September 30, 2024, compared to the immediately preceding quarter, while interest expense increased by $1.0 million.

The Company's net interest margin, calculated on a tax-equivalent basis, increased by 0.06% to 2.78% for the quarter ended September 30, 2024, from 2.72% for the immediately preceding quarter ended June 30, 2024.

The average cost of total deposits declined to 3.06% from 3.09% for the quarter ended June 30, 2024 and the average cost of interest bearing liabilities declined to 4.24% from 4.28% for the quarter ended June 30, 2024. The yield on average interest earning assets increased to 5.79% for the quarter ended September 30, 2024 from 5.77% for the prior quarter.

Non-interest expense

Non-interest expense increased by $6.9 million for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024. A $6.2 million increase in compensation and benefits for the quarter ended September 30, 2024 resulted primarily from an increase in the Company's stock price, impacting the value of liability-classified share based compensation awards and increases in certain other variable compensation accruals.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Tuesday, October 22, 2024 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/BIb2316bdeec79467e835d086e37e8b472. For those unable to join the live event, an archived webcast will be available on 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 $35.8 billion at September 30, 2024, 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, the 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 limitation) 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 but not limited to adverse events or conditions 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, 2023, 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)

	September 30, 2024			June 30, 2024			December 31, 2023
ASSETS
Cash and due from banks:
Non-interest bearing	$	14,746		$	12,631		$	14,945
Interest bearing		875,122			420,821			573,338
Cash and cash equivalents		889,868			433,452			588,283
Investment securities (including securities reported at fair value of $9,109,860, $8,936,449 and $8,867,354)		9,119,860			8,946,449			8,877,354
Non-marketable equity securities		237,172			223,159			310,084
Loans		24,398,703			24,628,484			24,633,684
Allowance for credit losses		(228,249	)		(225,698	)		(202,689	)
Loans, net		24,170,454			24,402,786			24,430,995
Bank owned life insurance		306,313			297,827			318,459
Operating lease equipment, net		241,625			266,815			371,909
Goodwill		77,637			77,637			77,637
Other assets		741,816			779,781			786,886
Total assets	$	35,784,745		$	35,427,906		$	35,761,607

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits:
Non-interest bearing	$	7,635,427		$	8,065,209		$	6,835,236
Interest bearing		5,171,865			3,771,793			3,403,539
Savings and money market		10,324,697			11,463,211			11,135,708
Time		4,724,236			4,463,394			5,163,995
Total deposits		27,856,225			27,763,607			26,538,478
FHLB advances		3,580,000			3,285,000			5,115,000
Notes and other borrowings		708,694			708,835			708,973
Other liabilities		832,022			971,116			821,235
Total liabilities		32,976,941			32,728,558			33,183,686

Commitments and contingencies

Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,749,012, 74,758,609 and 74,372,505 shares issued and outstanding		747			748			744
Paid-in capital		296,107			290,719			283,642
Retained earnings		2,749,314			2,709,503			2,650,956
Accumulated other comprehensive loss		(238,364	)		(301,622	)		(357,421	)
Total stockholders' equity		2,807,804			2,699,348			2,577,921
Total liabilities and stockholders' equity	$	35,784,745		$	35,427,906		$	35,761,607

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

	Three Months Ended						Nine Months Ended
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Interest income:
Loans	$	355,220	$	350,604	$	337,014	$	1,053,081	$	971,962
Investment securities		127,907		123,708		122,857		375,794		362,219
Other		9,229		8,986		10,668		28,253		40,195
Total interest income		492,356		483,298		470,539		1,457,128		1,374,376
Interest expense:
Deposits		208,630		208,091		176,974		626,719		467,472
Borrowings		49,598		49,185		78,723		155,402		250,310
Total interest expense		258,228		257,276		255,697		782,121		717,782
Net interest income before provision for credit losses		234,128		226,022		214,842		675,007		656,594
Provision for credit losses		9,248		19,538		33,049		44,071		68,354
Net interest income after provision for credit losses		224,880		206,484		181,793		630,936		588,240
Non-interest income:
Deposit service charges and fees		5,016		4,909		5,189		15,238		15,705
Gain (loss) on investment securities, net		127		421		887		1,323		(10,669	)
Lease financing		6,368		5,640		16,531		23,448		42,159
Other non-interest income		11,377		13,215		5,117		33,941		22,551
Total non-interest income		22,888		24,185		27,724		73,950		69,746
Non-interest expense:
Employee compensation and benefits		81,781		75,588		68,825		233,289		207,290
Occupancy and equipment		12,242		10,973		10,890		33,784		32,735
Deposit insurance expense		7,421		8,530		7,790		29,481		23,294
Professional fees		4,953		4,497		2,696		11,960		9,132
Technology		21,094		20,567		19,193		61,976		61,356
Depreciation of operating lease equipment		4,666		7,896		11,217		21,775		33,970
Other non-interest expense		32,425		29,655		26,479		89,263		77,311
Total non-interest expense		164,582		157,706		147,090		481,528		445,088
Income before income taxes		83,186		72,963		62,427		223,358		212,898
Provision for income taxes		21,734		19,230		15,446		60,193		55,039
Net income	$	61,452	$	53,733	$	46,981	$	163,165	$	157,859
Earnings per common share, basic	$	0.82	$	0.72	$	0.63	$	2.19	$	2.12
Earnings per common share, diluted	$	0.81	$	0.72	$	0.63	$	2.17	$	2.11

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

	Three Months Ended September 30,							Three Months Ended June 30,							Three Months Ended September 30,
	2024							2024							2023
	Average Balance			Interest⁽¹⁾		Yield/ Rate ⁽¹⁾⁽²⁾		Average Balance			Interest⁽¹⁾		Yield/ Rate ⁽¹⁾⁽²⁾		Average Balance			Interest⁽¹⁾		Yield/ Rate ⁽¹⁾⁽²⁾
Assets:
Interest earning assets:
Loans	$	24,299,898		$	358,259	5.87	%	$	24,290,169		$	353,707	5.85	%	$	24,417,433		$	340,357	5.54	%
Investment securities ⁽³⁾		9,171,185			128,762	5.62	%		8,894,517			124,572	5.60	%		9,034,116			123,794	5.48	%
Other interest earning assets		722,366			9,229	5.08	%		711,586			8,986	5.08	%		785,146			10,668	5.39	%
Total interest earning assets		34,193,449			496,250	5.79	%		33,896,272			487,265	5.77	%		34,236,695			474,819	5.52	%
Allowance for credit losses		(231,383	)						(225,161	)						(173,407	)
Non-interest earning assets		1,444,410							1,571,649							1,747,310
Total assets	$	35,406,476						$	35,242,760						$	35,810,598
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits	$	3,930,101		$	37,294	3.78	%	$	3,742,071		$	35,249	3.79	%	$	3,038,870		$	25,491	3.33	%
Savings and money market deposits		11,304,999			119,856	4.22	%		11,176,000			118,945	4.28	%		10,205,765			97,956	3.81	%
Time deposits		4,524,215			51,480	4.53	%		4,750,640			53,897	4.56	%		5,420,522			53,527	3.92	%
Total interest bearing deposits		19,759,315			208,630	4.20	%		19,668,711			208,091	4.26	%		18,665,157			176,974	3.76	%
FHLB advances		3,766,630			40,471	4.27	%		3,764,286			40,032	4.28	%		6,040,870			69,525	4.57	%
Notes and other borrowings		708,829			9,127	5.15	%		711,167			9,153	5.15	%		715,307			9,198	5.14	%
Total interest bearing liabilities		24,234,774			258,228	4.24	%		24,144,164			257,276	4.28	%		25,421,334			255,697	3.99	%
Non-interest bearing demand deposits		7,384,721							7,448,633							6,937,537
Other non-interest bearing liabilities		1,009,157							960,691							868,178
Total liabilities		32,628,652							32,553,488							33,227,049
Stockholders' equity		2,777,824							2,689,272							2,583,549
Total liabilities and stockholders' equity	$	35,406,476						$	35,242,760						$	35,810,598
Net interest income				$	238,022						$	229,989						$	219,122
Interest rate spread						1.55	%						1.49	%						1.53	%
Net interest margin						2.78	%						2.72	%						2.56	%

_________________________
(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)

	Nine Months Ended September 30,
	2024							2023
	Average Balance			Interest⁽¹⁾		Yield/ Rate ⁽¹⁾⁽²⁾		Average Balance			Interest⁽¹⁾		Yield/ Rate ⁽¹⁾⁽²⁾
Assets:
Interest earning assets:
Loans	$	24,309,134		$	1,062,407	5.84	%	$	24,606,425		$	981,976	5.33	%
Investment securities ⁽³⁾		9,006,654			378,358	5.60	%		9,356,211			364,980	5.20	%
Other interest earning assets		732,435			28,253	5.15	%		1,048,313			40,195	5.13	%
Total interest earning assets		34,048,223			1,469,018	5.76	%		35,010,949			1,387,151	5.29	%
Allowance for credit losses		(221,135	)						(162,395	)
Non-interest earning assets		1,534,800							1,761,500
Total assets	$	35,361,888						$	36,610,054
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits	$	3,752,828		$	106,050	3.77	%	$	2,728,287		$	54,781	2.68	%
Savings and money market deposits		11,238,662			357,440	4.25	%		10,844,838			278,243	3.43	%
Time deposits		4,834,209			163,229	4.51	%		5,150,486			134,448	3.49	%
Total interest bearing deposits		19,825,699			626,719	4.22	%		18,723,611			467,472	3.34	%
Federal funds purchased		—			—	—	%		46,510			1,582	4.54	%
FHLB advances		4,032,737			128,000	4.24	%		6,596,465			220,993	4.48	%
Notes and other borrowings		709,668			27,402	5.15	%		719,331			27,735	5.14	%
Total interest bearing liabilities		24,568,104			782,121	4.25	%		26,085,917			717,782	3.68	%
Non-interest bearing demand deposits		7,132,351							7,152,362
Other non-interest bearing liabilities		958,888							829,464
Total liabilities		32,659,343							34,067,743
Stockholders' equity		2,702,545							2,542,311
Total liabilities and stockholders' equity	$	35,361,888						$	36,610,054
Net interest income				$	686,897						$	669,369
Interest rate spread						1.51	%						1.61	%
Net interest margin						2.69	%						2.55	%

_________________________
(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									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Basic earnings per common share:
Numerator:
Net income	$	61,452		$	53,733		$	46,981		$	163,165		$	157,859
Distributed and undistributed earnings allocated to participating securities		(850	)		(748	)		(700	)		(2,282	)		(2,378	)
Income allocated to common stockholders for basic earnings per common share	$	60,602		$	52,985		$	46,281		$	160,883		$	155,481
Denominator:
Weighted average common shares outstanding		74,753,372			74,762,498			74,416,698			74,675,279			74,530,871
Less average unvested stock awards		(1,079,182	)		(1,110,233	)		(1,165,105	)		(1,105,654	)		(1,180,570	)
Weighted average shares for basic earnings per common share		73,674,190			73,652,265			73,251,593			73,569,625			73,350,301
Basic earnings per common share	$	0.82		$	0.72		$	0.63		$	2.19		$	2.12
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share	$	60,602		$	52,985		$	46,281		$	160,883		$	155,481
Adjustment for earnings reallocated from participating securities		6			2			3			9			8
Income used in calculating diluted earnings per common share	$	60,608		$	52,987		$	46,284		$	160,892		$	155,489
Denominator:
Weighted average shares for basic earnings per common share		73,674,190			73,652,265			73,251,593			73,569,625			73,350,301
Dilutive effect of certain share-based awards		817,866			365,988			537,230			481,126			388,372
Weighted average shares for diluted earnings per common share		74,492,056			74,018,253			73,788,823			74,050,751			73,738,673
Diluted earnings per common share	$	0.81		$	0.72		$	0.63		$	2.17		$	2.11

BANKUNITED, INC. AND SUBSIDIARIES SELECTED RATIOS

	At or for the Three Months Ended									At or for the Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Financial ratios⁽⁴⁾
Return on average assets		0.69	%		0.61	%		0.52	%		0.62	%		0.58	%
Return on average stockholders' equity		8.8	%		8.0	%		7.2	%		8.1	%		8.3	%
Net interest margin⁽³⁾		2.78	%		2.72	%		2.56	%		2.69	%		2.55	%
Loans to deposits		87.6	%		88.7	%		93.3	%		87.6	%		93.3	%
Tangible book value per common share	$	36.52		$	35.07		$	32.88		$	36.52		$	32.88

	September 30, 2024		June 30, 2024		December 31, 2023
Asset quality ratios
Non-performing loans to total loans⁽¹⁾⁽⁵⁾	0.92	%	0.70	%	0.52	%
Non-performing assets to total assets ⁽²⁾⁽⁵⁾	0.64	%	0.50	%	0.37	%
Allowance for credit losses to total loans	0.94	%	0.92	%	0.82	%
Allowance for credit losses to total commercial⁽⁶⁾	1.41	%	1.42	%	1.29	%
Allowance for credit losses to non-performing loans⁽¹⁾⁽⁵⁾	101.68	%	130.12	%	159.54	%
Net charge-offs to average loans⁽⁴⁾	0.12	%	0.12	%	0.09

_________________________
(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 six and nine month periods as applicable.
(5)		Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $35.1 million or 0.14% of total loans and 0.10% of total assets at September 30, 2024, $39.0 million or 0.16% of total loans and 0.11% of total assets at June 30, 2024, and $41.8 million or 0.17% of total loans and 0.12% of total assets at December 31, 2023.
(6)		For purposes of this ratio, commercial loans includes the C&I and CRE sub-segments, as well as franchise and equipment finance. Due to their unique risk profiles, MWL and municipal finance are excluded from this ratio.

	September 30, 2024		June 30, 2024		December 31, 2023		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	8.3 %	9.6 %	8.2 %	9.6 %	7.9 %	9.1 %	5.0 %
Common Equity Tier 1 ("CET1") risk-based capital	11.8 %	13.6 %	11.6 %	13.5 %	11.4 %	13.1 %	6.5 %
Total risk-based capital	13.9 %	14.6 %	13.6 %	14.4 %	13.4 %	13.9 %	10.0 %
Tangible Common Equity/Tangible Assets	7.6 %	N/A	7.4 %	N/A	7.0 %	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):

	September 30, 2024		June 30, 2024		December 31, 2023
Total stockholders' equity	$	2,807,804	$	2,699,348	$	2,577,921
Less: goodwill and other intangible assets		77,637		77,637		77,637
Tangible stockholders' equity	$	2,730,167	$	2,621,711	$	2,500,284

Common shares issued and outstanding		74,749,012		74,758,609		74,372,505

Book value per common share	$	37.56	$	36.11	$	34.66

Tangible book value per common share	$	36.52	$	35.07	$	33.62

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