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
Residential and other consumer loans	$	8,368,380	35.2	%	$	7,827,224	34.3	%	$	6,348,222	26.6	%
Multi-family		1,154,738	4.9	%		1,181,935	5.2	%		1,639,201	6.9	%
Non-owner occupied commercial real estate		4,381,610	18.4	%		4,537,078	19.9	%		4,963,273	20.8	%
Construction and land		165,390	0.7	%		163,988	0.7	%		293,307	1.2	%
Owner occupied commercial real estate		1,944,658	8.2	%		2,012,376	8.8	%		2,000,770	8.4	%
Commercial and industrial		4,790,275	20.2	%		4,166,914	18.3	%		4,447,383	18.6	%
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 finance		342,124	1.4	%		396,589	1.7	%		549,733	2.3	%
Bridge - equipment finance		357,599	1.5	%		379,446	1.7	%		475,548	2.0	%
Mortgage warehouse lending ("MWL")		1,092,133	4.6	%		877,006	3.8	%		1,259,408	5.3	%
	$	23,765,053	100.0	%	$	22,807,969	100.0	%	$	23,866,042	100.0	%
Operating lease equipment, net	$	640,726			$	659,935			$	663,517

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 Loans		Currently Under Short-Term Deferral		CARES Act Modification
Residential and other consumer⁽¹⁾	$	28,577	$	10,601	$	22,264
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 commercial real estate		20,453		—		15,109
Commercial and industrial		68,720		—		106,625
Bridge - franchise finance		32,879		—		27,881
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):

	December 31, 2021		September 30, 2021		December 31, 2020
Special mention	$	148,593	$	153,373	$	711,516
Substandard - accruing		1,136,378		1,432,801		1,758,654
Substandard - non-accruing		129,579		227,055		203,758
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		ACL to Total Loans ⁽¹⁾		ACL to Non- Performing Loans		Net Charge-offs to Average Loans
December 31, 2020	$	257,323	1.08	%	105.26	%	0.26	%
September 30, 2021	$	159,615	0.70	%	57.69	%
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):

	Three Months Ended December 31,						Years Ended December 31,
	2021			2020			2021			2020
Beginning balance	$	159,615		$	274,128		$	257,323		$	108,671
Cumulative effect of adoption of CECL		—			—			—			27,305
Balance after adoption of CECL		159,615			274,128			257,323			135,976
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, 2021			December 31, 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 securities recorded at fair value of $10,054,198 and $9,166,683)		10,064,198			9,176,683
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 93,067,500 shares issued and outstanding		856			931
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 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
	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	%

_______________________
(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	%

_______________________
(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 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	%

	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	%

_______________________
(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.


	December 31, 2021				December 31, 2020				Required to be Considered Well Capitalized
	BankUnited, Inc.		BankUnited, N.A.		BankUnited, Inc.		BankUnited, N.A.		Required to be Considered Well Capitalized
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			September 30, 2021			December 31, 2020
Total loans (GAAP)	$	23,765,053		$	22,807,969		$	23,866,042
Less: Government insured residential loans		2,023,221			1,913,497			1,419,074
Less: PPP loans		248,505			332,548			781,811
Less: MWL		1,092,133			877,006			1,259,408
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)	$	20,401,194		$	19,684,918		$	20,405,749

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

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

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

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, 2021		September 30, 2021		December 31, 2020
Total stockholders' equity (GAAP)	$	3,037,761	$	3,096,674	$	2,983,012
Less: goodwill		77,637		77,637		77,637
Tangible stockholders' equity (non-GAAP)	$	2,960,124	$	3,019,037	$	2,905,375

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

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

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

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BankUnited, Inc. Reports 2021 Results