Business Wire | Jan 20, 2022 06:45AM EST

BankUnited, Inc. Reports 2021 Results

Jan. 20, 2022

MIAMI LAKES, Fla.--(BUSINESS WIRE)--Jan. 20, 2022--BankUnited, Inc. (the "Company") (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2021.

"We are pleased with the quarter, with earnings of $1.41 per share, over $1 billion of loan growth, our best loan growth quarter since the second quarter of 2016, over $1 billion in deposit growth and margin expansion of 11 basis points. Our outlook for the Company going into 2022 is optimistic," said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended December 31, 2021, the Company reported net income of $125.3 million, or $1.41 per diluted share, compared to $86.9 million or $0.94 per diluted share for the immediately preceding quarter ended September 30, 2021 and $85.7 million, or $0.89 per diluted share, for the quarter ended December 31, 2020.

For the year ended December 31, 2021, the Company reported net income of $415.0 million, or $4.52 per diluted share, compared to $197.9 million, or $2.06 per diluted share, for the year ended December 31, 2020. The return on average stockholders' equity for the year ended December 31, 2021 was 13.3%, while the return on average assets was 1.16%.

Financial Highlights

* Total loans, excluding the runoff of PPP loans, grew by $1.0 billion for the quarter ended December 31, 2021, our largest loan growth quarter since the second quarter of 2016.

* The net interest margin, calculated on a tax-equivalent basis, expanded to 2.44% for the quarter ended December 31, 2021 from 2.33% for both the immediately preceding quarter and for the quarter ended December 31, 2020. Net interest income increased by $10.9 million compared to the immediately preceding quarter ended September 30, 2021 and by $12.6 million compared to the quarter ended December 31, 2020.

* Total deposits increased by $1.3 billion during the quarter ended December 31, 2021. Average non-interest bearing demand deposits grew by $418 million for the quarter ended December 31, 2021, compared to the immediately preceding quarter and by $2.2 billion compared to the quarter ended December 31, 2020. At December 31, 2021, non-interest bearing demand deposits represented 30% of total deposits, compared to 25% of total deposits at December 31, 2020. Non-interest bearing demand deposits declined by $183 million during the quarter ended December 31, 2021.

* The average cost of total deposits was 0.19% for the quarter ended December 31, 2021 compared to 0.20% for the immediately preceding quarter ended September 30, 2021. The average cost of total deposits was 0.43% for the quarter ended December 31, 2020. On a spot basis, the average annual percentage yield ("APY") on total deposits declined to 0.16% at December 31, 2021 from 0.19% at September 30, 2021 and 0.36% at December 31, 2020.

* Criticized and classified loans continued to decline. During the quarter ended December 31, 2021, total criticized and classified loans declined by $367 million. The ratio of non-performing loans to total loans declined to 0.87% at December 31, 2021 from 1.21% at September 30, 2021. Loans currently under short-term deferral totaled $11 million and loans modified under the CARES Act totaled $194 million for a total of $205 million at December 31, 2021, down from a total of $285 million at September 30, 2021.

* For the quarter ended December 31, 2021, the Company recorded a provision for credit losses of $0.2 million compared to a recovery of $(11.8) million for the immediately preceding quarter ended September 30, 2021 and a recovery of credit losses of $(1.6) million for the quarter ended December 31, 2020. For the years ended December 31, 2021 and 2020, the provision for (recovery of) credit losses was $(67.1) million and $178.4 million, respectively. Year over year volatility in the provision is related to the expected economic impact of the onset of the COVID-19 pandemic in 2020 and subsequent economic recovery in 2021.

* As previously reported, during the quarter ended December 31, 2021, the Bank reached a settlement with the Florida Department of Revenue related to certain tax matters for the 2009-2019 tax years and recorded a tax benefit of $43.9 million, net of federal impact. Unrelated to the Florida settlement, the Bank recorded an additional $25.2 million tax benefit related to a reduction in the liability for unrecognized tax benefits arising from expiration of statutes of limitation in the Federal and certain state jurisdictions.

* The following table details $40.4 million of notable items that impacted income before income taxes for the quarter ended December 31, 2021 (income (expense) in thousands):

Gain on sale of single-family residential loans $ 18,216

Discontinuance of cash flow hedges (44,833 )

Special employee bonus (6,809 )

Professional fees related to tax settlement (4,198 )

Impairment of operating lease equipment (2,813 )

$ (40,437 )

* Book value per common share and tangible book value per common share continued to accrete, increasing to $35.47 and $34.56, respectively, at December 31, 2021 from $34.39 and $33.53, respectively, at September 30, 2021 and $32.05 and $31.22, respectively at December 31, 2020.

* During the quarter ended December 31, 2021, the Company repurchased approximately 4.4 million shares of its common stock for an aggregate purchase price of $181.8 million, at a weighted average price of $41.45 per share.

Loans and Leases

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

December 31, 2021 September 30, 2021 December 31, 2020

Residentialand other $ 8,368,380 35.2 % $ 7,827,224 34.3 % $ 6,348,222 26.6 %consumerloans

Multi-family 1,154,738 4.9 % 1,181,935 5.2 % 1,639,201 6.9 %

Non-owneroccupied 4,381,610 18.4 % 4,537,078 19.9 % 4,963,273 20.8 %commercialreal estate

Construction 165,390 0.7 % 163,988 0.7 % 293,307 1.2 %and land

Owneroccupied 1,944,658 8.2 % 2,012,376 8.8 % 2,000,770 8.4 %commercialreal estate

Commercialand 4,790,275 20.2 % 4,166,914 18.3 % 4,447,383 18.6 %industrial

PPP 248,505 1.0 % 332,548 1.5 % 781,811 3.3 %

Pinnacle 919,641 3.9 % 932,865 4.1 % 1,107,386 4.6 %

Bridge -franchise 342,124 1.4 % 396,589 1.7 % 549,733 2.3 %finance

Bridge -equipment 357,599 1.5 % 379,446 1.7 % 475,548 2.0 %finance

Mortgagewarehouse 1,092,133 4.6 % 877,006 3.8 % 1,259,408 5.3 %lending("MWL")

$ 23,765,053 100.0 % $ 22,807,969 100.0 % $ 23,866,042 100.0 %

Operatinglease $ 640,726 $ 659,935 $ 663,517 equipment,net

In the aggregate, commercial loans, excluding the runoff of PPP loans, grew by $500 million during the quarter ended December 31, 2021. The largest increase was in commercial and industrial loans, including owner-occupied commercial real estate which grew by $556 million for the quarter, followed by mortgage warehouse lending which grew by $215 million for the quarter. MWL line utilization was 56% at December 31, 2021 compared to 51% at September 30, 2021 and 62% at December 31, 2020. Commercial real estate portfolio segments in the aggregate declined by $181 million. Balances for Pinnacle and Bridge declined by $13 million and $76 million, respectively. Residential and other consumer loans grew by $541 million during the quarter ended December 31, 2021. GNMA early buyout loans grew by $110 million, totaling $2.0 billion at December 31, 2021.

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

The following table presents information about non-performing loans, loans on deferral and CARES Act modifications at December 31, 2021 (in thousands):

Non-Performing Currently Under CARES Act Loans Short-Term Deferral Modification

Residential and other $ 28,577 $ 10,601 $ 22,264consumer^ (1)

Commercial:

CRE by Property Type:

Retail 18,152 - -

Hotel 18,282 - 14,828

Office 814 - -

Multi-family 10,865 - 7,315

Other 7,167 - -

Owner occupied 20,453 - 15,109commercial real estate

Commercial and 68,720 - 106,625industrial

Bridge - franchise 32,879 - 27,881finance

Total commercial 177,332 - 171,758

Total $ 205,909 $ 10,601 $ 194,022

_______________________(1)

Excludes government insured residential loans.

In the table above, "currently under short-term deferral" refers to loans subject to a 90-day payment deferral at December 31, 2021 and "CARES Act modification" refers to loans subject to longer-term modifications that, were it not for the provisions of the CARES Act, which expired on January 1, 2022, would likely have been reported as TDRs. Non-performing loans may include some loans that have been modified under the CARES Act. All of the loans that have rolled off of modification to date have paid off or resumed regular payments.

Non-performing loans totaled $205.9 million or 0.87% of total loans at December 31, 2021, compared to $276.7 million or 1.21% of total loans at September 30, 2021 and $244.5 million or 1.02% of total loans at December 31, 2020. Non-performing loans included $46.1 million, $49.1 million and $51.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.19% of total loans at December 31, 2021 and 0.22% of total loans at both September 30, 2021 and December 31, 2020.

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

_______________________(1) Excludes government insured residential loans.

In the table above, "currently under short-term deferral" refers to loans subject to a 90-day payment deferral at December 31, 2021 and "CARES Act modification" refers to loans subject to longer-term modifications that, were it not for the provisions of the CARES Act, which expired on January 1, 2022, would likely have been reported as TDRs. Non-performing loans may include some loans that have been modified under the CARES Act. All of the loans that have rolled off of modification to date have paid off or resumed regular payments.

Non-performing loans totaled $205.9 million or 0.87% of total loans at December 31, 2021, compared to $276.7 million or 1.21% of total loans at September 30, 2021 and $244.5 million or 1.02% of total loans at December 31, 2020. Non-performing loans included $46.1 million, $49.1 million and $51.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.19% of total loans at December 31, 2021 and 0.22% of total loans at both September 30, 2021 and December 31, 2020.

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

December 31, September 30, December 31, 2021 2021 2020

Special mention $ 148,593 $ 153,373 $ 711,516

Substandard - accruing 1,136,378 1,432,801 1,758,654

Substandard - 129,579 227,055 203,758 non-accruing

Doubtful 47,754 16,447 11,867

Total $ 1,462,304 $ 1,829,676 $ 2,685,795

The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the years ended December 31, 2021 and 2020 (dollars in thousands):

ACL to ACL to Non- Net Charge-offs ACL Total Performing to Loans ^(1) Loans Average Loans

December 31, 2020 $ 257,323 1.08 % 105.26 % 0.26 %

September 30, $ 159,615 0.70 % 57.69 % 2021

December 31, 2021 $ 126,457 0.53 % 61.41 % 0.29 %

_______________________

(1)

ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.62%, 0.81% and 1.26% at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

The ACL at December 31, 2021 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in December 2021, economic information provided by additional sources, information about borrower financial condition and collateral values, data reflecting the impact of recent events on individual borrowers and other relevant information.

For the quarter ended December 31, 2021, the Company recorded a provision for credit losses of $0.2 million, which included a provision of $1.1 million related to funded loans offset by recoveries of provision related to unfunded loan commitments and accrued interest receivable. The decline in the ACL for the quarter ended December 31, 2021 was primarily attributable to charge-offs, the substantial majority of which were previously reserved for.

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

_______________________

(1) ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.62%, 0.81% and 1.26% at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

The ACL at December 31, 2021 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in December 2021, economic information provided by additional sources, information about borrower financial condition and collateral values, data reflecting the impact of recent events on individual borrowers and other relevant information.

For the quarter ended December 31, 2021, the Company recorded a provision for credit losses of $0.2 million, which included a provision of $1.1 million related to funded loans offset by recoveries of provision related to unfunded loan commitments and accrued interest receivable. The decline in the ACL for the quarter ended December 31, 2021 was primarily attributable to charge-offs, the substantial majority of which were previously reserved for.

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

Three Months Ended Years Ended December 31, December 31,

2021 2020 2021 2020

Beginning balance $ 159,615 $ 274,128 $ 257,323 $ 108,671

Cumulative effect of - - - 27,305 adoption of CECL

Balance after adoption of 159,615 274,128 257,323 135,976 CECL

Provision (recovery) 1,067 1,244 (64,456 ) 182,339

Net charge-offs (34,225 ) (18,049 ) (66,410 ) (60,992 )

Ending balance $ 126,457 $ 257,323 $ 126,457 $ 257,323

Net interest income

Net interest income for the quarter ended December 31, 2021 was $206.0 million compared to $195.1 million for the immediately preceding quarter ended September 30, 2021 and $193.4 million for the quarter ended December 31, 2020. Interest income increased by $3.5 million for the quarter ended December 31, 2021 compared to the immediately preceding quarter, and decreased by $13.2 million compared to the quarter ended December 31, 2020. Interest expense decreased by $7.4 million compared to the immediately preceding quarter and by $25.9 million compared to the quarter ended December 31, 2020.

The Company's net interest margin, calculated on a tax-equivalent basis, increased by 0.11% to 2.44% for the quarter ended December 31, 2021, from 2.33% for the immediately preceding quarter ended September 30, 2021. Factors impacting the net interest margin for the quarter ended December 31, 2021 included:

* The average rate paid on FHLB and FRB advances decreased to 1.86% for the quarter ended December 31, 2021, from 2.35% for the quarter ended September 30, 2021. This decrease resulted from the termination and maturity of higher cost cash flow hedges and related borrowings during the quarter ended December 31, 2021.

* The average rate paid on interest bearing deposits decreased to 0.27% for the quarter ended December 31, 2021, from 0.29% for the quarter ended September 30, 2021. This decline reflected continued initiatives taken to lower rates paid on deposits, including the re-pricing of term deposits, partially offset by the issuance of some callable CDs in anticipation of rising rates.

* The tax-equivalent yield on investment securities increased to 1.54% for the quarter ended December 31, 2021 from 1.49% for the quarter ended September 30, 2021. This increase resulted primarily from slower prepayment speeds on securities purchased at a premium.

* The tax-equivalent yield on loans increased to 3.50% for the quarter ended December 31, 2021, from 3.45% for the quarter ended September 30, 2021.

Non-interest income and Non-interest expense

Non-interest income totaled $45.6 million for the quarter ended December 31, 2021 compared to $25.5 million for the immediately preceding quarter ended September 30, 2021 and $35.3 million for the quarter ended December 31, 2020. The main reason for the increase in non-interest income for the quarter ended December 31, 2021 compared to the immediately preceding quarter was an increase in the gain on sale of loans. During the quarter, the Company sold a portfolio of single-family residential loans for a gain of $18.2 million.

Non-interest expense totaled $187.9 million for the quarter ended December 31, 2021 compared to $118.0 million for the immediately preceding quarter ended September 30, 2021 and $123.3 million for the quarter ended December 31, 2020. Non-interest expense totaled $547.6 million and $457.2 million for the year ended December 31, 2021 and 2020, respectively. The following table details notable items that impacted non-interest expense for the quarter ended December 31, 2021 (in thousands):

Discontinuance of cash flow hedges $ (44,833 )

Special employee bonus (6,809 )

Professional fees related to tax settlement (4,198 )

Impairment of operating lease equipment (2,813 )

$ (58,653 )

* Employee compensation and benefits increased by $13.3 million for the quarter ended December 31, 2021 compared to the immediately preceding quarter. The Company paid a special bonus in the fourth quarter to substantially all of its employees, in recognition of their hard work and efforts in the challenging environment we have faced over the past two years. Employees, regardless of their position in the organization, shared equally in the bonus payout, which totaled $6.8 million. Additionally, there was an increase of $4.6 million in variable compensation accruals for both incentives and regular annual discretionary bonuses in the fourth quarter.

* Professional fees increased by $5.7 million for the quarter ended December 31, 2021 compared to the immediately preceding quarter. The increase is primarily a result of $4.2 million related to the tax settlement with the Florida Department of Revenue discussed above.

* A loss on discontinuance of cash flow hedges totaling $44.8 million resulted from the termination of $401 million notional of pay fixed interest rate swaps at a weighted average pay rate of 3.24% during the quarter ended December 31, 2021.

* Depreciation and impairment of operating lease equipment included $2.8 million resulting from impairment charges related to certain sand cars in the operating lease equipment portfolio.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, January 20, 2022 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. The dial in telephone number for the call is (855) 798-3052 (domestic) or (234) 386-2812 (international). The name of the call is BankUnited, Inc. and the conference ID for the call is 1618956. A replay of the call will be available from 12:00 p.m. ET on January 20th through 11:59 p.m. ET on January 27th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 1618956. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.

About BankUnited, Inc.

BankUnited, Inc., with total assets of $35.8 billion at December 31, 2021, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 63 banking centers in 13 Florida counties and 4 banking centers in the New York metropolitan area at December 31, 2021.

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 the COVID-19 pandemic. 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, 2020 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)



December 31, December 31, 2021 2020

ASSETS

Cash and due from banks:

Non-interest bearing $ 19,143 $ 20,233

Interest bearing 295,714 377,483

Cash and cash equivalents 314,857 397,716

Investment securities (including securitiesrecorded at fair value of $10,054,198 and 10,064,198 9,176,683 $9,166,683)

Non-marketable equity securities 135,859 195,865

Loans held for sale - 24,676

Loans 23,765,053 23,866,042

Allowance for credit losses (126,457 ) (257,323 )

Loans, net 23,638,596 23,608,719

Bank owned life insurance 309,477 294,629

Operating lease equipment, net 640,726 663,517

Goodwill 77,637 77,637

Other assets 634,046 571,051

Total assets $ 35,815,396 $ 35,010,493



LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Demand deposits:

Non-interest bearing $ 8,975,621 $ 7,008,838

Interest bearing 3,709,493 3,020,039

Savings and money market 13,368,745 12,659,740

Time 3,384,243 4,807,199

Total deposits 29,438,102 27,495,816

Federal funds purchased 199,000 180,000

FHLB advances 1,905,000 3,122,999

Notes and other borrowings 721,416 722,495

Other liabilities 514,117 506,171

Total liabilities 32,777,635 32,027,481



Commitments and contingencies



Stockholders' equity:

Common stock, par value $0.01 per share,400,000,000 shares authorized; 85,647,986 and 856 931 93,067,500 shares issued and outstanding

Paid-in capital 707,503 1,017,518

Retained earnings 2,345,342 2,013,715

Accumulated other comprehensive loss (15,940 ) (49,152 )

Total stockholders' equity 3,037,761 2,983,012

Total liabilities and stockholders' equity $ 35,815,396 $ 35,010,493

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

Three Months Ended

Years Ended

December 31,

September 30,

December 31,

December 31,

December 31,

2021

2021

2020

2021

2020

Interest income:

Loans

$

198,275

$

194,689

$

207,232

$

800,819

$

864,175

Investment securities

38,201

38,243

42,260

152,619

193,856

Other

1,397

1,413

1,628

6,010

9,578

Total interest income

237,873

234,345

251,120

959,448

1,067,609

Interest expense:

Deposits

13,631

14,273

29,290

67,596

199,980

Borrowings

18,227

24,950

28,464

96,164

115,871

Total interest expense

31,858

39,223

57,754

163,760

315,851

Net interest income before provision for credit losses

206,015

195,122

193,366

795,688

751,758

Provision for (recovery of) credit losses

246

(11,842

)

(1,643

)

(67,119

)

178,431

Net interest income after provision for credit losses

205,769

206,964

195,009

862,807

573,327

Non-interest income:

Deposit service charges and fees

5,815

5,553

4,569

21,685

16,496

Gain on sale of loans, net

19,003

1,403

2,425

24,394

13,170

Gain (loss) on investment securities, net

590

(664

)

7,203

6,446

17,767

Lease financing

14,041

13,212

13,547

53,263

59,112

Other non-interest income

6,173

5,974

7,536

28,365

26,676

Total non-interest income

45,622

25,478

35,280

134,153

133,221

Non-interest expense:

Employee compensation and benefits

70,561

57,224

60,944

243,532

217,156

Occupancy and equipment

12,817

11,760

11,797

47,944

48,237

Deposit insurance expense

3,471

3,552

6,759

18,695

21,854

Professional fees

8,023

2,312

2,937

14,386

11,708

Technology and telecommunications

18,221

16,687

16,052

67,500

58,108

Discontinuance of cash flow hedges

44,833

-

-

44,833

-

Depreciation and impairment of operating lease equipment

15,769

12,944

12,270

53,764

49,407

Other non-interest expense

14,165

13,563

12,565

56,921

50,719

Total non-interest expense

187,860

118,042

123,324

547,575

457,189

Income before income taxes

63,531

114,400

106,965

449,385

249,359

Provision (benefit) for income taxes

(61,724

)

27,459

21,228

34,401

51,506

Net income

$

125,255

$

86,941

$

85,737

$

414,984

$

197,853

Earnings per common share, basic

$

1.42

$

0.94

$

0.89

$

4.52

$

2.06

Earnings per common share, diluted

$

1.41

$

0.94

$

0.89

$

4.52

$

2.06



BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)



Three Months Ended Years Ended

December September December December December 31, 31, 30, 31, 31,

2021 2021 2020 2021 2020

Interest income:

Loans $ 198,275 $ 194,689 $ 207,232 $ 800,819 $ 864,175

Investment 38,201 38,243 42,260 152,619 193,856 securities

Other 1,397 1,413 1,628 6,010 9,578

Total interest 237,873 234,345 251,120 959,448 1,067,609 income

Interest expense:

Deposits 13,631 14,273 29,290 67,596 199,980

Borrowings 18,227 24,950 28,464 96,164 115,871

Total interest 31,858 39,223 57,754 163,760 315,851 expense

Net interestincome before 206,015 195,122 193,366 795,688 751,758 provision forcredit losses

Provision for(recovery of) 246 (11,842 ) (1,643 ) (67,119 ) 178,431 credit losses

Net interestincome after 205,769 206,964 195,009 862,807 573,327 provision forcredit losses

Non-interest income:

Deposit service 5,815 5,553 4,569 21,685 16,496 charges and fees

Gain on sale of 19,003 1,403 2,425 24,394 13,170 loans, net

Gain (loss) oninvestment 590 (664 ) 7,203 6,446 17,767 securities, net

Lease financing 14,041 13,212 13,547 53,263 59,112

Other non-interest 6,173 5,974 7,536 28,365 26,676 income

Total non-interest 45,622 25,478 35,280 134,153 133,221 income

Non-interest expense:

Employeecompensation and 70,561 57,224 60,944 243,532 217,156 benefits

Occupancy and 12,817 11,760 11,797 47,944 48,237 equipment

Deposit insurance 3,471 3,552 6,759 18,695 21,854 expense

Professional fees 8,023 2,312 2,937 14,386 11,708

Technology and 18,221 16,687 16,052 67,500 58,108 telecommunications

Discontinuance of 44,833 - - 44,833 - cash flow hedges

Depreciation andimpairment of 15,769 12,944 12,270 53,764 49,407 operating leaseequipment

Other non-interest 14,165 13,563 12,565 56,921 50,719 expense

Total non-interest 187,860 118,042 123,324 547,575 457,189 expense

Income before 63,531 114,400 106,965 449,385 249,359 income taxes

Provision(benefit) for (61,724 ) 27,459 21,228 34,401 51,506 income taxes

Net income $ 125,255 $ 86,941 $ 85,737 $ 414,984 $ 197,853

Earnings percommon share, $ 1.42 $ 0.94 $ 0.89 $ 4.52 $ 2.06 basic

Earnings percommon share, $ 1.41 $ 0.94 $ 0.89 $ 4.52 $ 2.06 diluted

BANKUNITED, INC. AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS

(Dollars in thousands)

Three Months Ended December 31, 2021

Three Months Ended September 30, 2021

Three Months Ended December 31, 2020

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

$

22,919,535

$

201,345

3.50

%

$

22,879,654

$

197,995

3.45

%

$

23,706,859

$

210,896

3.55

%

Investment securities (3)

10,113,026

38,889

1.54

%

10,452,255

38,939

1.49

%

9,446,389

42,966

1.82

%

Other interest earning assets

1,184,056

1,397

0.47

%

750,700

1,413

0.75

%

726,273

1,628

0.89

%

Total interest earning assets

34,216,617

241,631

2.81

%

34,082,609

238,347

2.79

%

33,879,521

255,490

3.01

%

Allowance for credit losses

(149,319

)

(171,381

)

(280,243

)

Non-interest earning assets

1,767,850

1,856,608

1,817,476

Total assets

$

35,835,148

$

35,767,836

$

35,416,754

Liabilities and Stockholders' Equity:

Interest bearing liabilities:

Interest bearing demand deposits

$

3,058,355

$

1,481

0.19

%

$

3,038,038

$

1,701

0.22

%

$

2,903,300

$

3,637

0.50

%

Savings and money market deposits

13,460,084

9,619

0.28

%

13,554,572

10,029

0.29

%

11,839,631

14,517

0.49

%

Time deposits

3,399,302

2,531

0.30

%

2,866,746

2,543

0.35

%

5,360,630

11,136

0.83

%

Total interest bearing deposits

19,917,741

13,631

0.27

%

19,459,356

14,273

0.29

%

20,103,561

29,290

0.58

%

Federal funds purchased

56,793

13

0.09

%

70,054

15

0.08

%

20,707

6

0.12

%

FHLB and PPPLF borrowings

1,909,450

8,957

1.86

%

2,647,314

15,678

2.35

%

3,698,666

19,207

2.07

%

Notes and other borrowings

721,525

9,257

5.13

%

721,638

9,257

5.13

%

722,581

9,251

5.12

%

Total interest bearing liabilities

22,605,509

31,858

0.56

%

22,898,362

39,223

0.68

%

24,545,515

57,754

0.94

%

Non-interest bearing demand deposits

9,330,805

8,912,960

7,152,967

Other non-interest bearing liabilities

785,254

752,774

772,277

Total liabilities

32,721,568

32,564,096

32,470,759

Stockholders' equity

3,113,580

3,203,740

2,945,995

Total liabilities and stockholders' equity

$

35,835,148

$

35,767,836

$

35,416,754

Net interest income

$

209,773

$

199,124

$

197,736

Interest rate spread

2.25

%

2.11

%

2.07

%

Net interest margin

2.44

%

2.33

%

2.33

%



BANKUNITED, INC. AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS

(Dollars in thousands)



Three Months Ended Three Months Ended Three Months Ended December 31, 2021 September 30, 2021 December 31, 2020

Average Yield/ Average Yield/ Average Yield/ Interest ^ Interest^ Interest ^ Balance (1) Rate ^ Balance (1) Rate ^ Balance (1) Rate ^ (1)(2) (1)(2) (1)(2)

Assets:

Interestearning assets:

Loans $ 22,919,535 $ 201,345 3.50 % $ 22,879,654 $ 197,995 3.45 % $ 23,706,859 $ 210,896 3.55 %

Investmentsecurities ^ 10,113,026 38,889 1.54 % 10,452,255 38,939 1.49 % 9,446,389 42,966 1.82 %(3)

Otherinterest 1,184,056 1,397 0.47 % 750,700 1,413 0.75 % 726,273 1,628 0.89 %earningassets

Totalinterest 34,216,617 241,631 2.81 % 34,082,609 238,347 2.79 % 33,879,521 255,490 3.01 %earningassets

Allowance for (149,319 ) (171,381 ) (280,243 ) credit losses

Non-interestearning 1,767,850 1,856,608 1,817,476 assets

Total assets $ 35,835,148 $ 35,767,836 $ 35,416,754

Liabilitiesand Stockholders'Equity:

Interestbearing liabilities:

Interestbearing $ 3,058,355 $ 1,481 0.19 % $ 3,038,038 $ 1,701 0.22 % $ 2,903,300 $ 3,637 0.50 %demanddeposits

Savings andmoney market 13,460,084 9,619 0.28 % 13,554,572 10,029 0.29 % 11,839,631 14,517 0.49 %deposits

Time deposits 3,399,302 2,531 0.30 % 2,866,746 2,543 0.35 % 5,360,630 11,136 0.83 %

Totalinterest 19,917,741 13,631 0.27 % 19,459,356 14,273 0.29 % 20,103,561 29,290 0.58 %bearingdeposits

Federal funds 56,793 13 0.09 % 70,054 15 0.08 % 20,707 6 0.12 %purchased

FHLB andPPPLF 1,909,450 8,957 1.86 % 2,647,314 15,678 2.35 % 3,698,666 19,207 2.07 %borrowings

Notes andother 721,525 9,257 5.13 % 721,638 9,257 5.13 % 722,581 9,251 5.12 %borrowings

Totalinterest 22,605,509 31,858 0.56 % 22,898,362 39,223 0.68 % 24,545,515 57,754 0.94 %bearingliabilities

Non-interestbearing 9,330,805 8,912,960 7,152,967 demanddeposits

Othernon-interest 785,254 752,774 772,277 bearingliabilities

Total 32,721,568 32,564,096 32,470,759 liabilities

Stockholders' 3,113,580 3,203,740 2,945,995 equity

Totalliabilitiesand $ 35,835,148 $ 35,767,836 $ 35,416,754 stockholders'equity

Net interest $ 209,773 $ 199,124 $ 197,736 income

Interest rate 2.25 % 2.11 % 2.07 %spread

Net interest 2.44 % 2.33 % 2.33 %margin

_______________________

(1)

On a tax-equivalent basis where applicable

(2)

Annualized

(3)

At fair value except for securities held to maturity

_______________________

(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)

Years Ended December 31,

2021

2020

Average

Balance

Interest (1)

Yield/

Rate (1)

Average

Balance

Interest (1)

Yield/

Rate (1)

Assets:

Interest earning assets:

Loans

$

23,083,973

$

814,101

3.53

%

$

23,385,832

$

879,082

3.76

%

Investment securities (2)

9,873,178

155,353

1.57

%

8,739,023

196,954

2.25

%

Other interest earning assets

1,093,869

6,010

0.55

%

672,634

9,578

1.42

%

Total interest earning assets

34,051,020

975,464

2.86

%

32,797,489

1,085,614

3.31

%

Allowance for credit losses

(197,212

)

(236,704

)

Non-interest earning assets

1,770,685

1,860,322

Total assets

$

35,624,493

$

34,421,107

Liabilities and Stockholders' Equity:

Interest bearing liabilities:

Interest bearing demand deposits

$

3,027,649

8,550

0.28

%

$

2,582,951

19,445

0.75

%

Savings and money market deposits

13,339,651

43,082

0.32

%

10,843,894

85,572

0.79

%

Time deposits

3,490,082

15,964

0.46

%

6,617,939

94,963

1.43

%

Total interest bearing deposits

19,857,382

67,596

0.34

%

20,044,784

199,980

1.00

%

Federal funds purchased

33,945

30

0.09

%

71,858

418

0.58

%

FHLB and PPPLF borrowings

2,622,723

59,116

2.25

%

4,295,882

85,491

1.99

%

Notes and other borrowings

721,803

37,018

5.13

%

592,521

29,962

5.06

%

Total interest bearing liabilities

23,235,853

163,760

0.70

%

25,005,045

315,851

1.26

%

Non-interest bearing demand deposits

8,480,964

5,760,309

Other non-interest bearing liabilities

784,031

786,337

Total liabilities

32,500,848

31,551,691

Stockholders' equity

3,123,645

2,869,416

Total liabilities and stockholders' equity

$

35,624,493

$

34,421,107

Net interest income

$

811,704

$

769,763

Interest rate spread

2.16

%

2.05

%

Net interest margin

2.38

%

2.35

%



BANKUNITED, INC. AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS

(Dollars in thousands)



Years Ended December 31,

2021 2020

Average Yield/ Average Yield/ Interest ^ Interest ^(1) Balance (1) Rate ^ Balance Rate ^ (1) (1)

Assets:

Interestearning assets:

Loans $ 23,083,973 $ 814,101 3.53 % $ 23,385,832 $ 879,082 3.76 %

Investmentsecurities ^ 9,873,178 155,353 1.57 % 8,739,023 196,954 2.25 %(2)

Otherinterest 1,093,869 6,010 0.55 % 672,634 9,578 1.42 %earningassets

Totalinterest 34,051,020 975,464 2.86 % 32,797,489 1,085,614 3.31 %earningassets

Allowance for (197,212 ) (236,704 ) credit losses

Non-interestearning 1,770,685 1,860,322 assets

Total assets $ 35,624,493 $ 34,421,107

Liabilitiesand Stockholders'Equity:

Interestbearing liabilities:

Interestbearing $ 3,027,649 8,550 0.28 % $ 2,582,951 19,445 0.75 %demanddeposits

Savings andmoney market 13,339,651 43,082 0.32 % 10,843,894 85,572 0.79 %deposits

Time deposits 3,490,082 15,964 0.46 % 6,617,939 94,963 1.43 %

Totalinterest 19,857,382 67,596 0.34 % 20,044,784 199,980 1.00 %bearingdeposits

Federal funds 33,945 30 0.09 % 71,858 418 0.58 %purchased

FHLB andPPPLF 2,622,723 59,116 2.25 % 4,295,882 85,491 1.99 %borrowings

Notes andother 721,803 37,018 5.13 % 592,521 29,962 5.06 %borrowings

Totalinterest 23,235,853 163,760 0.70 % 25,005,045 315,851 1.26 %bearingliabilities

Non-interestbearing 8,480,964 5,760,309 demanddeposits

Othernon-interest 784,031 786,337 bearingliabilities

Total 32,500,848 31,551,691 liabilities

Stockholders' 3,123,645 2,869,416 equity

Totalliabilitiesand $ 35,624,493 $ 34,421,107 stockholders'equity

Net interest $ 811,704 $ 769,763 income

Interest rate 2.16 % 2.05 %spread

Net interest 2.38 % 2.35 %margin

_______________________

(1)

On a tax-equivalent basis where applicable

(2)

At fair value except for securities held to maturity

_______________________

(1) On a tax-equivalent basis where applicable

(2) 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 December 31,

Years Ended December 31,

2021

2020

2021

2020

Basic earnings per common share:

Numerator:

Net income

$

125,255

$

85,737

$

414,984

$

197,853

Distributed and undistributed earnings allocated to participating securities

(2,059

)

(4,015

)

(5,991

)

(8,882

)

Income allocated to common stockholders for basic earnings per common share

$

123,196

$

81,722

$

408,993

$

188,971

Denominator:

Weighted average common shares outstanding

88,123,835

92,725,905

91,612,243

92,869,736

Less average unvested stock awards

(1,193,180

)

(1,160,984

)

(1,212,055

)

(1,163,480

)

Weighted average shares for basic earnings per common share

86,930,655

91,564,921

90,400,188

91,706,256

Basic earnings per common share

$

1.42

$

0.89

$

4.52

$

2.06

Diluted earnings per common share:

Numerator:

Income allocated to common stockholders for basic earnings per common share

$

123,196

$

81,722

$

408,993

$

188,971

Adjustment for earnings reallocated from participating securities

(234

)

(67

)

(585

)

(123

)

Income used in calculating diluted earnings per common share

$

122,962

$

81,655

$

408,408

$

188,848

Denominator:

Weighted average shares for basic earnings per common share

86,930,655

91,564,921

90,400,188

91,706,256

Dilutive effect of stock options

-

20,179

134

24,608

Weighted average shares for diluted earnings per common share

86,930,655

91,585,100

90,400,322

91,730,864

Diluted earnings per common share

$

1.41

$

0.89

$

4.52

$

2.06



BANKUNITED, INC. AND SUBSIDIARIES

EARNINGS PER COMMON SHARE

(In thousands except share and per share amounts)



Three Months Ended December 31, Years Ended December 31,

2021 2020 2021 2020

Basicearnings per common share:

Numerator:

Net income $ 125,255 $ 85,737 $ 414,984 $ 197,853

Distributedandundistributedearnings (2,059 ) (4,015 ) (5,991 ) (8,882 )allocated toparticipatingsecurities

Incomeallocated tocommonstockholders $ 123,196 $ 81,722 $ 408,993 $ 188,971 for basicearnings percommon share

Denominator:

Weightedaverage 88,123,835 92,725,905 91,612,243 92,869,736 common sharesoutstanding

Less averageunvested (1,193,180 ) (1,160,984 ) (1,212,055 ) (1,163,480 )stock awards

Weightedaverageshares for 86,930,655 91,564,921 90,400,188 91,706,256 basicearnings percommon share

Basicearnings per $ 1.42 $ 0.89 $ 4.52 $ 2.06 common share

Dilutedearnings per common share:

Numerator:

Incomeallocated tocommonstockholders $ 123,196 $ 81,722 $ 408,993 $ 188,971 for basicearnings percommon share

Adjustmentfor earningsreallocated (234 ) (67 ) (585 ) (123 )fromparticipatingsecurities

Income usedincalculating $ 122,962 $ 81,655 $ 408,408 $ 188,848 dilutedearnings percommon share

Denominator:

Weightedaverageshares for 86,930,655 91,564,921 90,400,188 91,706,256 basicearnings percommon share

Dilutiveeffect of - 20,179 134 24,608 stock options

Weightedaverageshares for 86,930,655 91,585,100 90,400,322 91,730,864 dilutedearnings percommon share

Dilutedearnings per $ 1.41 $ 0.89 $ 4.52 $ 2.06 common share

BANKUNITED, INC. AND SUBSIDIARIES

SELECTED RATIOS

Three Months Ended December 31,

Years Ended December 31,

2021

2020

2021

2020

Financial ratios (4)

Return on average assets

1.39

%

0.96

%

1.16

%

0.57

%

Return on average stockholders' equity

16.0

%

11.6

%

13.3

%

6.9

%

Net interest margin (3)

2.44

%

2.33

%

2.38

%

2.35

%



BANKUNITED, INC. AND SUBSIDIARIES

SELECTED RATIOS



Three Months Ended Years Ended December December 31, 31,

2021 2020 2021 2020

Financial ratios^ (4)

Return on average assets 1.39 % 0.96 % 1.16 % 0.57 %

Return on average 16.0 % 11.6 % 13.3 % 6.9 %stockholders' equity

Net interest margin^ (3) 2.44 % 2.33 % 2.38 % 2.35 %

December 31, 2021

September 30, 2021

December 31, 2020

Asset quality ratios

Non-performing loans to total loans (1)(5)

0.87

%

1.21

%

1.02

%

Non-performing assets to total assets (2)(5)

0.58

%

0.80

%

0.71

%

Allowance for credit losses to total loans

0.53

%

0.70

%

1.08

%

Allowance for credit losses to non-performing loans (1)(5)

61.41

%

57.69

%

105.26

%

Net charge-offs to average loans

0.29

%

0.26

%

December September December 31, 2021 30, 2021 31, 2020

Asset quality ratios

Non-performing loans to total loans^ 0.87 % 1.21 % 1.02 %(1)(5)

Non-performing assets to total assets 0.58 % 0.80 % 0.71 %^(2)(5)

Allowance for credit losses to total 0.53 % 0.70 % 1.08 %loans

Allowance for credit losses to 61.41 % 57.69 % 105.26 %non-performing loans^ (1)(5)

Net charge-offs to average loans 0.29 % 0.26 %

_______________________

(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 month periods.

(5)

Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021; and $51.3 million or 0.22% of total loans and 0.15% of total assets at December 31, 2020.

_______________________

We define non-performing loans to include non-accrual loans and loans other(1) 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 month periods.

Non-performing loans and assets include the guaranteed portion of(5) non-accrual SBA loans totaling $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021; and $51.3 million or 0.22% of total loans and 0.15% of total assets at December 31, 2020.

December 31, 2021

December 31, 2020

Required to be Considered Well Capitalized

BankUnited, Inc.

BankUnited, N.A.

BankUnited, Inc.

BankUnited, N.A.

Capital ratios

Tier 1 leverage

8.4

%

9.6

%

8.6

%

9.5

%

5.0

%

Common Equity Tier 1 ("CET1") risk-based capital

12.6

%

14.5

%

12.6

%

13.9

%

6.5

%

Total risk-based capital

14.3

%

14.9

%

14.7

%

14.8

%

10.0

%

On a fully-phased in basis with respect to the adoption of CECL, the Company's and the Bank's CET1 risk-based capital ratios would have been 12.5% and 14.4%, respectively, at December 31, 2021.

Non-GAAP Financial Measures

ACL to total loans, excluding government insured residential loans, PPP loans and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands):

December 31, 2021 December 31, 2020 Required to be Considered BankUnited, BankUnited, BankUnited, BankUnited, Well Inc. N.A. Inc. N.A. Capitalized

Capital ratios

Tier 1 8.4 % 9.6 % 8.6 % 9.5 % 5.0 %leverage

CommonEquity Tier1 ("CET1") 12.6 % 14.5 % 12.6 % 13.9 % 6.5 %risk-basedcapital

Totalrisk-based 14.3 % 14.9 % 14.7 % 14.8 % 10.0 %capital

On a fully-phased in basis with respect to the adoption of CECL, the Company's and the Bank's CET1 risk-based capital ratios would have been 12.5% and 14.4%, respectively, at December 31, 2021.

Non-GAAP Financial Measures

ACL to total loans, excluding government insured residential loans, PPP loans and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands):

December 31, September 30, December 31, 2021 2021 2020

Total loans (GAAP) $ 23,765,053 $ 22,807,969 $ 23,866,042

Less: Government insured 2,023,221 1,913,497 1,419,074 residential loans

Less: PPP loans 248,505 332,548 781,811

Less: MWL 1,092,133 877,006 1,259,408

Total loans, excludinggovernment insured residential $ 20,401,194 $ 19,684,918 $ 20,405,749 loans, PPP loans and MWL(non-GAAP)



ACL $ 126,457 $ 159,615 $ 257,323



ACL to total loans (GAAP) 0.53 % 0.70 % 1.08 %



ACL to total loans, excludinggovernment insured residential 0.62 % 0.81 % 1.26 %loans, PPP loans and MWL(non-GAAP)

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):

December 31, September 30, December 31, 2021 2021 2020

Total stockholders' equity $ 3,037,761 $ 3,096,674 $ 2,983,012(GAAP)

Less: goodwill 77,637 77,637 77,637

Tangible stockholders' equity $ 2,960,124 $ 3,019,037 $ 2,905,375 (non-GAAP)



Common shares issued and 85,647,986 90,049,326 93,067,500 outstanding



Book value per common share $ 35.47 $ 34.39 $ 32.05 (GAAP)



Tangible book value per common $ 34.56 $ 33.53 $ 31.22 share (non-GAAP)

View source version on businesswire.com: https://www.businesswire.com/news/home/20220120005040/en/

CONTACT: BankUnited, Inc. Investor Relations: Leslie N. Lunak, 786-313-1698 llunak@bankunited.com