Exhibit 99.1
 
BANKUNITED, INC. REPORTS 2020 RESULTS
 
Miami Lakes, Fla. — January 21, 2021 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2020.
“Overall, this was an excellent quarter. We saw improvement in the economic outlook leading to a reduction in credit costs and continued to execute on our core strategy of improving the deposit mix, lowering the cost of funds and growing net interest income." said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended December 31, 2020, the Company reported net income of $85.7 million, or $0.89 per diluted share, compared to $66.6 million, or $0.70 per diluted share, for the immediately preceding quarter ended September 30, 2020 and $89.5 million, or $0.91 per diluted share, for the quarter ended December 31, 2019. On an annualized basis, earnings for the quarter ended December 31, 2020 generated a return on average stockholders' equity of 11.6% and a return on average assets of 0.96%.
For the year ended December 31, 2020, the Company reported net income of $197.9 million, or $2.06 per diluted share, compared to $313.1 million, or $3.13 per diluted share, for the year ended December 31, 2019. Results for the year ended December 31, 2020 were negatively impacted by the application of the Current Expected Credit Losses ("CECL") accounting methodology, including the impact of COVID-19 on the provision for credit losses.
Financial Highlights
Net interest income increased by $5.9 million compared to the immediately preceding quarter ended September 30, 2020 and by $8.1 million compared to the quarter ended December 31, 2019. The net interest margin, calculated on a tax-equivalent basis, was 2.33% for the quarter ended December 31, 2020 compared to 2.32% for the immediately preceding quarter. The net interest margin was 2.41% for the quarter ended December 31, 2019.
The average cost of total deposits continued to decline, dropping by 0.14% to 0.43% for the quarter ended December 31, 2020 compared to 0.57% for the quarter ended September 30, 2020. The average cost of total deposits was 1.48% for the quarter ended December 31, 2019. On a spot basis, the average annual percentage yield ("APY") on total deposits declined to 0.36% at December 31, 2020 from 0.49% at September 30, 2020 and 1.42% at December 31, 2019.
For the quarter ended December 31, 2020, the Company recorded a net recovery of credit losses of $1.6 million compared to a provision for credit losses of $29.2 million for the immediately preceding quarter ended September 30, 2020. The reduction in the provision for credit losses reflected improvements in forecasted economic conditions, which offset the impact of some further downward risk rating migration and increases in specific reserves. The provision for credit losses was $178.4 million for the year ended December 31, 2020. At December 31, 2020, the allowance for credit losses ("ACL") was $257 million, or 1.08% of the loan portfolio, compared to $274 million, or 1.15% at September 30, 2020. The reduction in the ACL as a percentage of loans was attributable primarily to charge-offs taken during the quarter, coupled with the lower provision for credit losses.
Pre-tax, pre-provision net revenue ("PPNR") was $105.3 million for the quarter ended December 31, 2020 compared to $104.1 million for the quarter ended December 31, 2019 and $115.1 million for the immediately preceding quarter ended September 30, 2020. PPNR for the quarter ended December 31, 2020 was impacted by year-end adjustments to certain compensation accruals. For the year ended December 31, 2020, PPNR improved to $427.8 million from $412.9 million for the year ended December 31, 2019.
Average non-interest bearing demand deposits grew by $966 million for the quarter ended December 31, 2020 compared to the immediately preceding quarter and by $2.9 billion compared to the quarter ended December 31, 2019. At December 31, 2020, non-interest bearing demand deposits represented 25% of total deposits, compared to 18% of total deposits at December 31, 2019. Total deposits grew by $899 million and $3.1 billion during the quarter and year ended December 31, 2020, respectively, of which $219 million and $2.7 billion respectively was non-interest bearing. Higher cost time deposits continued to runoff, declining by $1.1 billion and $2.5 billion for the quarter and year ended December 31, 2020, respectively.
1


Loans on deferral totaled $207 million or less than 1% of total loans at December 31, 2020. Loans modified under the CARES Act totaled $587 million at December 31, 2020. In the aggregate, this represents $794 million or 3% of the total loan portfolio at December 31, 2020, down from $3.6 billion or 15% of total loans that were granted an initial 90 day deferral as reported at the end of the second quarter. As of December 31, 2020, commercial loans on short-term payment deferral totaled $63 million and commercial loans subject to CARES Act modifications totaled $575 million or 3% of the total commercial portfolio. Residential loans still on deferral were $144 million and those modified under the CARES Act were $12 million, for a total of $156 million or 2% of the residential portfolio at December 31, 2020.
Book value per common share and tangible book value per common share at December 31, 2020 increased to $32.05 and $31.22, respectively, from $31.01 and $30.17, respectively at September 30, 2020 and $31.33 and $30.52, respectively at December 31, 2019.
On January 20, 2021, the Company’s Board of Directors reinstated the share repurchase program that the Company suspended on March 16, 2020. Authorization to repurchase up to approximately $44.9 million in shares of its outstanding common stock remains under the share repurchase program. Any repurchases under the program will be made in accordance with applicable securities laws from time to time in open market or private transactions. The extent to which the Company repurchases shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, the Company’s capital position and amount of retained earnings, regulatory requirements and other considerations. No time limit was set for the completion of the share repurchase program, and the program may be suspended or discontinued at any time.
Loans and Leases
A comparison of loan and lease portfolio composition at the dates indicated follows (dollars in thousands):
December 31, 2020September 30, 2020December 31, 2019
Residential and other consumer loans$6,348,222 26.6 %$5,940,900 25.1 %$5,661,119 24.5 %
Multi-family1,639,201 6.9 %1,810,126 7.6 %2,217,705 9.6 %
Non-owner occupied commercial real estate4,963,273 20.8 %4,910,835 20.7 %5,030,904 21.7 %
Construction and land293,307 1.2 %263,381 1.1 %243,925 1.1 %
Owner occupied commercial real estate2,000,770 8.4 %2,051,577 8.6 %2,062,808 8.9 %
Commercial and industrial4,447,383 18.6 %4,427,351 18.6 %4,655,349 20.1 %
PPP781,811 3.3 %829,798 3.5 %— — %
Pinnacle1,107,386 4.6 %1,157,706 4.9 %1,202,430 5.2 %
Bridge - franchise finance549,733 2.3 %606,222 2.4 %627,482 2.6 %
Bridge - equipment finance475,548 2.0 %530,516 2.2 %684,794 3.0 %
Mortgage warehouse lending ("MWL")1,259,408 5.3 %1,250,903 5.3 %768,472 3.3 %
$23,866,042 100.0 %$23,779,315 100.0 %$23,154,988 100.0 %
Operating lease equipment, net$663,517 $676,321 $698,153 
Growth in residential and other consumer loans for the quarter was mainly attributable to GNMA early buyout loans. At December 31, 2020, September 30, 2020 and December 31, 2019, the residential portfolio included $1.4 billion, $1.1 billion and $676 million, respectively, of GNMA early buyout loans. Residential activity for the quarter included purchases of approximately $472 million in GNMA early buyout loans, offset by approximately $142 million in re-poolings and paydowns. Residential and other consumer loans, excluding GNMA early buyout loans, grew by approximately $77 million.
In the aggregate, commercial loans declined by $321 million for the quarter ended December 31, 2020 as the environment remained challenging for production and our approach to new lending remained disciplined. The largest decline was in the multi-family segment which decreased by $171 million for the quarter, driven primarily by $151 million in runoff of the New York portfolio. Loans and operating lease equipment at Bridge declined by a total of $124 million during the quarter.
During the quarter ended December 31, 2020, the Company began processing forgiveness applications with the SBA, resulting in a $48 million decline in PPP loans.
2


Mortgage warehouse commitments totaled $2.1 billion at December 31, 2020, an increase of 60% compared to $1.3 billion at December 31, 2019. Line utilization was 62% at December 31, 2020 compared to 59% at December 31, 2019.
Asset Quality and the Allowance for Credit Losses
The following table presents information about non-performing loans, loans on deferral and CARES Act modifications at December 31, 2020 (dollars in thousands):
Non-Performing Loans Currently Under Short-Term DeferralCARES Act Modification
Residential and other consumer (1)
$28,828 $144,189 $12,050 
Commercial:
CRE - Property Type:
Retail 16,566 28,542 18,526 
Hotel 35,390 1,055 343,492 
Office 9,436 — 47,949 
Multi-family24,090 — 15,776 
Other 7,379 1,789 — 
Owner occupied commercial real estate 23,152 8,432 6,198 
Commercial and industrial 54,584 2,191 117,836 
Bridge - franchise finance 45,028 20,797 24,816 
Total commercial215,62562,806574,593
Total $244,453 $206,995 $586,643 
(1)    Excludes government insured residential loans.
In the table above, "currently under short-term deferral" refers to loans subject to either a first or second 90-day payment deferral at December 31, 2020 and "CARES Act modification" refers to loans subject to longer-term modifications that, were it not for the provisions of the CARES Act, would likely have been reported as TDRs. Non-performing loans may include some loans that have been modified under the CARES Act.
Non-performing loans totaled $244.5 million or 1.02% of total loans at December 31, 2020, compared to $200.3 million or 0.84% of total loans at September 30, 2020 and $204.8 million or 0.88% of total loans at December 31, 2019. The largest increases in non-performing loans during the quarter ended December 31, 2020 were in the multi-family, franchise finance and residential sub-segments, while non-performing commercial and industrial loans declined. Non-performing loans included $51.3 million, $43.6 million and $45.7 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.22%, 0.18% and 0.20% of total loans at December 31, 2020, September 30, 2020 and December 31, 2019, respectively.
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
December 31, 2020September 30, 2020December 31, 2019
Special mention$711,516 $951,981 $72,881 
Substandard - accruing1,758,654 1,376,718180,380
Substandard - non-accruing203,758 187,247185,906
Doubtful11,867 938 — 
Total $2,685,795 $2,516,884 $439,167 
The following table presents the ACL at the dates indicated, related ACL coverage ratios, as well as net charge-off rates for the years ended December 31, 2020 and 2019 (dollars in thousands):
ACLACL to Total LoansACL to Non-Performing LoansNet Charge-offs to Average Loans
December 31, 2019 (incurred loss)$108,671 0.47 %53.07 %0.05 %
January 1, 2020 (initial date of CECL adoption)$135,976 0.59 %66.40 %N/A
September 30, 2020 (expected loss)$274,128 1.15 %136.86 %0.25 %
December 31, 2020 (expected loss)$257,323 1.08 %(1)105.26 %0.26 %
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(1)    ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 1.26% at December 31, 2020.
The ACL at December 31, 2020 represents management's estimate of lifetime expected credit losses from the loan portfolio 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 2020, economic information provided by additional sources, data reflecting the impact of recent events on individual borrowers and other relevant information. The decline in the ACL from September 30, 2020 to December 31, 2020 related primarily to charge-offs taken during the quarter, coupled with the lower provision for credit losses.
For the quarter ended December 31, 2020, the Company recorded a net recovery of credit losses of $1.6 million, which included a provision of $1.2 million related to funded loans offset by a recovery of $2.9 million related to unfunded loan commitments as well as immaterial components related to accrued interest receivable and an AFS debt security. The provision for credit losses reflected improvements in forecasted economic conditions, which largely offset the impact of risk rating migration and increases in certain specific reserves.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
Three Months Ended December 31,Years Ended December 31,
 2020201920202019
Beginning balance$274,128 $108,462 $108,671 $109,931 
Cumulative effect of adoption of CECL— — 27,305 — 
Balance after adoption of CECL274,128 108,462 135,976 109,931 
Provision (recovery)1,244 (469)182,339 8,904 
Charge-offs(18,848)(3,556)(69,602)(17,541)
Recoveries799 4,234 8,610 7,377 
Ending balance$257,323 $108,671 $257,323 $108,671 
$13.8 million of the charge-offs recognized during the quarter ended December 31, 2020 related to $57.6 million of non-performing loans that were sold during the quarter, or held for sale at quarter-end.
Net interest income
Net interest income for the quarter ended December 31, 2020 was $193.4 million compared to $187.5 million for the immediately preceding quarter ended September 30, 2020 and $185.3 million for the quarter ended December 31, 2019. While average interest earning assets have increased quarter-over-quarter and year-over-year, average interest bearing liabilities have continued to decline as average non-interest bearing demand deposits have grown.
Interest income decreased by $3.5 million for the quarter ended December 31, 2020 compared to the immediately preceding quarter, and by $58.3 million, compared to the quarter ended December 31, 2019. Interest expense decreased by $9.3 million compared to the immediately preceding quarter and by $66.3 million compared to the quarter ended December 31, 2019. Decreases in interest income resulted from declines in market interest rates including the impact of repayment of assets originated in a higher rate environment, partially offset by increases in average interest earning assets. Declines in interest expense reflected decreases in market interest rates, the impact of our strategy focused on lowering the cost of deposits and improving the deposit mix and declines in average interest bearing liabilities.
The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.01% to 2.33% for the quarter ended December 31, 2020, from 2.32% for the immediately preceding quarter ended September 30, 2020. Offsetting factors contributing to the increase in the net interest margin for the quarter ended December 31, 2020 compared to the immediately preceding quarter ended September 30, 2020 included:
The average rate paid on interest bearing deposits decreased to 0.58% for the quarter ended December 31, 2020, from 0.75% for the quarter ended September 30, 2020. This decline reflected continued initiatives taken to lower rates paid on deposits in response to declines in general market interest rates and the re-pricing of term deposits. We expect the cost of interest bearing deposits to continue to decline; at December 31, 2020, approximately $1.0 billion or 21% of the time deposit portfolio, with an average rate of 1.61%, has not yet repriced since March 2020 when the Fed last cut rates. The majority of these CDs will mature in the first quarter of 2021.
4


The tax-equivalent yield on investment securities decreased to 1.82% for the quarter ended December 31, 2020 from 2.00% for the quarter ended September 30, 2020. This decrease resulted from the impact of purchases of lower-yielding securities, prepayments of higher yielding mortgage-backed securities and decreases in coupon interest rates on existing floating rate assets.
The tax-equivalent yield on loans decreased to 3.55% for the quarter ended December 31, 2020, from 3.61% for the quarter ended September 30, 2020. Factors contributing to this decrease included the impact of runoff of loans originated in a higher rate environment, originations at lower prevailing market rates and interest income reversed on loans placed on non-accrual during the quarter.
The average rate paid on FHLB and PPPLF borrowings increased to 2.07% for the quarter ended December 31, 2020, from 1.95% for the quarter ended September 30, 2020, reflecting the maturity of short-term, lower rate FHLB advances and the payoff of all PPPLF borrowings.
The increase in average non-interest bearing demand deposits as a percentage of average total deposits also positively impacted the cost of total deposits and the net interest margin.
The Company's net interest margin, calculated on a tax-equivalent basis, was 2.35% for the year ended December 31, 2020, compared to 2.47% for the year ended December 31, 2019. The decline in the yield on interest earning assets outpaced the reduction in cost of interest bearing liabilities for the period. The offsetting factors discussed above with respect to the yields on loans and securities, the average rate paid on deposits and the growth in non-interest bearing demand deposits also impacted the the net interest margin for the year ended December 30, 2020 compared to the prior year. Declines in market interest rates had a significant impact on year-over-year changes in yields earned on interest earning assets and rates paid on interest bearing liabilities.
Non-interest expense
Non-interest expense totaled $123.3 million for the quarter ended December 31, 2020 compared to $108.6 million for the immediately preceding quarter ended September 30, 2020 and $119.0 million for the quarter ended December 31, 2019. Non-interest expense totaled $457.2 million and $487.1 million for the year ended December 31, 2020 and 2019, respectively, a decline of approximately 6%.
Compensation and benefits increased by $12.5 million for the quarter ended December 31, 2020 compared to the immediately preceding quarter. This increase included an increase of $6.6 million in variable compensation accruals related to stronger than initially anticipated operating results over the second half of the year; a $2.2 million vacation accrual related to rollover vacation days provided to employees in response to COVID-19; and an increase of $2.5 million in the accrual related to liability classified share awards stemming from an increase in the stock price.
Cost reductions stemming from our BankUnited 2.0 initiative contributed to the declining trend in occupancy and equipment expense and other non-interest expense.
The increasing trend in technology and telecommunications expense is reflective of investments in digital and data analytics capabilities and in the infrastructure to support cloud migration.
The increasing trend in deposit insurance expense reflects an increase in the assessment rate.
For the quarter and year ended December 31, 2020, non-interest expense included approximately $2.8 million and $4.8 million, respectively, in costs directly related to our response to the COVID-19 pandemic.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, January 21, 2021 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, and Chief Financial Officer, Leslie N. Lunak.
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 http://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 9281414. A replay of the call will be available from 12:00 p.m. ET on January 21st through 11:59 p.m. ET on January 28th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 9281414. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.
5


About BankUnited, Inc.
BankUnited, Inc., with total assets of $35.0 billion at December 31, 2020, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 70 banking centers in 14 Florida counties and 4 banking centers in the New York metropolitan area at December 31, 2020.
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, 2019 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).
Contact
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak, 786-313-1698
llunak@bankunited.com
Source: BankUnited, Inc.
6


BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data) 
December 31,
2020
December 31,
2019
ASSETS  
Cash and due from banks:  
Non-interest bearing$20,233 $7,704 
Interest bearing377,483 206,969 
Cash and cash equivalents 397,716 214,673 
Investment securities (including securities recorded at fair value of $9,166,683 and $7,759,237)9,176,683 7,769,237 
Non-marketable equity securities195,865 253,664 
Loans held for sale24,676 37,926 
Loans23,866,042 23,154,988 
Allowance for credit losses (257,323)(108,671)
Loans, net23,608,719 23,046,317 
Bank owned life insurance 294,629 282,151 
Operating lease equipment, net663,517 698,153 
Goodwill and other intangible assets77,637 77,674 
Other assets571,051 491,498 
Total assets$35,010,493 $32,871,293 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Demand deposits:  
Non-interest bearing$7,008,838 $4,294,824 
Interest bearing3,020,039 2,130,976 
Savings and money market12,659,740 10,621,544 
Time4,807,199 7,347,247 
Total deposits27,495,816 24,394,591 
Federal funds purchased180,000 100,000 
FHLB advances3,122,999 4,480,501 
Notes and other borrowings722,495 429,338 
Other liabilities506,171 486,084 
Total liabilities 32,027,481 29,890,514 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 93,067,500 and 95,128,231 shares issued and outstanding931 951 
Paid-in capital1,017,518 1,083,920 
Retained earnings2,013,715 1,927,735 
Accumulated other comprehensive loss(49,152)(31,827)
Total stockholders' equity 2,983,012 2,980,779 
Total liabilities and stockholders' equity $35,010,493 $32,871,293 

7


BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
Three Months EndedYears Ended
 December 31,September 30,December 31,December 31,
 20202020201920202019
Interest income:    
Loans$207,232 $208,646 $242,642 $864,175 $981,408 
Investment securities42,260 44,604 62,006 193,856 280,560 
Other1,628 1,322 4,762 9,578 19,902 
Total interest income 251,120 254,572 309,410 1,067,609 1,281,870 
Interest expense:
Deposits29,290 37,681 88,289 199,980 385,180 
Borrowings28,464 29,412 35,810 115,871 143,905 
Total interest expense 57,754 67,093 124,099 315,851 529,085 
Net interest income before provision for credit losses 193,366 187,479 185,311 751,758 752,785 
Provision for (recovery of) credit losses (1,643)29,232 (469)178,431 8,904 
Net interest income after provision for credit losses 195,009 158,247 185,780 573,327 743,881 
Non-interest income:
Deposit service charges and fees4,569 4,040 4,150 16,496 16,539 
Gain on sale of loans, net
2,425 2,953 1,899 13,170 12,119 
Gain on investment securities, net
7,203 7,181 7,438 17,767 21,174 
Lease financing13,547 13,934 13,857 59,112 66,631 
Other non-interest income7,536 8,184 10,412 26,676 30,741 
Total non-interest income 35,280 36,292 37,756 133,221 147,204 
Non-interest expense:
Employee compensation and benefits60,944 48,448 55,744 217,156 235,330 
Occupancy and equipment 11,797 12,170 13,697 48,237 56,174 
Deposit insurance expense6,759 5,886 4,142 21,854 16,991 
Professional fees 2,937 2,436 2,621 11,708 20,352 
Technology and telecommunications16,052 15,435 13,334 58,108 47,509 
Depreciation of operating lease equipment12,270 12,315 13,610 49,407 48,493 
Loss on debt extinguishment— — — — 3,796 
Other non-interest expense12,565 11,937 15,860 50,719 58,444 
Total non-interest expense 123,324 108,627 119,008 457,189 487,089 
Income before income taxes106,965 85,912 104,528 249,359 403,996 
Provision for income taxes21,228 19,353 15,072 51,506 90,898 
Net income$85,737 $66,559 $89,456 $197,853 $313,098 
Earnings per common share, basic$0.89 $0.70 $0.91 $2.06 $3.14 
Earnings per common share, diluted$0.89 $0.70 $0.91 $2.06 $3.13 

8


BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Three Months Ended
December 31, 2020
Three Months Ended
September 30, 2020
Three Months Ended
December 31, 2019
Average
Balance
Interest (1)(2)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)(2)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)(2)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans $23,706,859 $210,896 3.55 %$23,447,514 $212,388 3.61 %$22,986,427 $246,458 4.27 %
Investment securities (3)
9,446,389 42,966 1.82 %9,065,478 45,351 2.00 %7,929,948 62,948 3.18 %
Other interest earning assets726,273 1,628 0.89 %552,515 1,322 0.95 %627,001 4,762 3.01 %
Total interest earning assets33,879,521 255,490 3.01 %33,065,507 259,061 3.13 %31,543,376 314,168 3.97 %
Allowance for credit losses(280,243)(272,464)(110,503)
Non-interest earning assets1,817,476 1,897,723 1,655,342 
Total assets$35,416,754 $34,690,766 $33,088,215 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$2,903,300 $3,637 0.50 %$2,800,421 $4,127 0.59 %$1,947,034 $6,485 1.32 %
Savings and money market deposits11,839,631 14,517 0.49 %10,664,462 15,853 0.59 %10,416,964 41,705 1.59 %
Time deposits5,360,630 11,136 0.83 %6,519,852 17,701 1.08 %7,016,192 40,099 2.27 %
Total interest bearing deposits20,103,561 29,290 0.58 %19,984,735 37,681 0.75 %19,380,190 88,289 1.81 %
Short term borrowings20,707 0.12 %53,587 14 0.10 %115,928 505 1.73 %
FHLB and PPPLF borrowings3,698,666 19,207 2.07 %4,117,181 20,146 1.95 %5,244,495 30,011 2.27 %
Notes and other borrowings722,581 9,251 5.12 %722,271 9,252 5.12 %404,086 5,294 5.24 %
Total interest bearing liabilities24,545,515 57,754 0.94 %24,877,774 67,093 1.07 %25,144,699 124,099 1.96 %
Non-interest bearing demand deposits7,152,967 6,186,718 4,292,943 
Other non-interest bearing liabilities772,277 803,498 686,027 
Total liabilities32,470,759 31,867,990 30,123,669 
Stockholders' equity2,945,995 2,822,776 2,964,546 
Total liabilities and stockholders' equity$35,416,754 $34,690,766 $33,088,215 
Net interest income$197,736 $191,968 $190,069 
Interest rate spread2.07 %2.06 %2.01 %
Net interest margin2.33 %2.32 %2.41 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    At fair value except for securities held to maturity

9


BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Years Ended December 31,
 20202019
 Average
Balance
Interest (1)
Yield/
Rate
(1)
Average
Balance
Interest (1)
Yield/
Rate
(1)
Assets:
Interest earning assets:      
Loans $23,385,832 $879,082 3.76 %$22,553,250 $998,130 4.43 %
Investment securities (2)
8,739,023 196,954 2.25 %8,231,858 284,849 3.46 %
Other interest earning assets672,634 9,578 1.42 %555,992 19,902 3.58 %
Total interest earning assets32,797,489 1,085,614 3.31 %31,341,100 1,302,881 4.16 %
Allowance for credit losses(236,704)(112,890)
Non-interest earning assets1,860,322 1,625,579 
Total assets$34,421,107 $32,853,789 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$2,582,951 19,445 0.75 %$1,824,803 25,054 1.37 %
Savings and money market deposits10,843,894 85,572 0.79 %10,922,819 197,942 1.81 %
Time deposits6,617,939 94,963 1.43 %6,928,499 162,184 2.34 %
Total interest bearing deposits20,044,784 199,980 1.00 %19,676,121 385,180 1.96 %
Short term borrowings71,858 418 0.58 %124,888 2,802 2.24 %
FHLB and PPPLF borrowings4,295,882 85,491 1.99 %5,089,524 119,901 2.36 %
Notes and other borrowings592,521 29,962 5.06 %403,704 21,202 5.25 %
Total interest bearing liabilities25,005,045 315,851 1.26 %25,294,237 529,085 2.09 %
Non-interest bearing demand deposits5,760,309 3,950,612 
Other non-interest bearing liabilities786,337 662,590 
Total liabilities31,551,691 29,907,439 
Stockholders' equity2,869,416 2,946,350 
Total liabilities and stockholders' equity$34,421,107 $32,853,789 
Net interest income$769,763 $773,796 
Interest rate spread2.05 %2.07 %
Net interest margin2.35 %2.47 %
(1)    On a tax-equivalent basis where applicable
(2)    At fair value except for securities held to maturity

10


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,
c2020201920202019
Basic earnings per common share:  
Numerator: 
Net income$85,737 $89,456 $197,853 $313,098 
Distributed and undistributed earnings allocated to participating securities
(4,015)(3,971)(8,882)(13,371)
Income allocated to common stockholders for basic earnings per common share
$81,722 $85,485 $188,971 $299,727 
Denominator:
Weighted average common shares outstanding92,725,905 95,000,894 92,869,736 96,581,290 
Less average unvested stock awards(1,160,984)(1,065,813)(1,163,480)(1,127,275)
Weighted average shares for basic earnings per common share
91,564,921 93,935,081 91,706,256 95,454,015 
Basic earnings per common share$0.89 $0.91 $2.06 $3.14 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share
$81,722 $85,485 $188,971 $299,727 
Adjustment for earnings reallocated from participating securities
(67)(41)(123)(175)
Income used in calculating diluted earnings per common share
$81,655 $85,444 $188,848 $299,552 
Denominator:
Weighted average shares for basic earnings per common share91,564,921 93,935,081 91,706,256 95,454,015 
Dilutive effect of stock options20,179 186,967 24,608 202,890 
Weighted average shares for diluted earnings per common share
91,585,100 94,122,048 91,730,864 95,656,905 
Diluted earnings per common share$0.89 $0.91 $2.06 $3.13 

11



BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 Three Months Ended December 31,Years Ended December 31,
 2020201920202019
Financial ratios (4)
    
Return on average assets0.96 %1.07 %0.57 %0.95 %
Return on average stockholders’ equity11.6 %12.0 %6.9 %10.6 %
Net interest margin (3)
2.33 %2.41 %2.35 %2.47 %
 December 31, 2020December 31, 2019
Asset quality ratios  
Non-performing loans to total loans (1)(5)
1.02 %0.88 %
Non-performing assets to total assets (2)(5)
0.71 %0.63 %
Allowance for credit losses to total loans1.08 %0.47 %
Allowance for credit losses to non-performing loans (1)(5)
105.26 %53.07 %
Net charge-offs to average loans0.26 %0.05 %
(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 period.
(5)    Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $51.3 million or 0.22% of total loans and 0.15% of total assets, at December 31, 2020; and $45.7 million or 0.20% of total loans and 0.14% of total assets, at December 31, 2019.

December 31, 2020December 31, 2019Required to be Considered Well Capitalized
BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.
Capital ratios
Tier 1 leverage8.6 %9.5 %8.9 %9.3 %5.0 %
Common Equity Tier 1 ("CET1") risk-based capital12.6 %13.9 %12.3 %12.9 %6.5 %
Total risk-based capital14.7 %14.8 %12.8 %13.4 %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 12.4% and 13.7%, respectively, at December 31, 2020. The increase in the total risk-based capital ratio for BankUnited, Inc. from December 31, 2019 to December 31, 2020 includes the issuance of $300 million in subordinated debt in the second quarter of 2020.
12


Non-GAAP Financial Measures
PPNR is a non-GAAP financial measure. Management believes this measure is relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses and the ability of the Company to generate earnings sufficient to cover estimated credit losses, particularly in view of the adoption of the CECL accounting methodology, which may impact comparability of operating results to prior periods. This measure also provides a meaningful basis for comparison to other financial institutions and is a measure frequently cited by investors. The following table reconciles the non-GAAP financial measurement of PPNR to the comparable GAAP financial measurement of income before income taxes for the three months and year ended December 31, 2020 and 2019 and the three months ended September 30, 2020 (in thousands):
Three Months Ended December 31,Three Months Ended September 30,Three Months Ended December 31,Years Ended December 31,
20202020201920202019
Income before income taxes (GAAP)$106,965 $85,912 $104,528 $249,359 $403,996 
Plus: Provision for (recovery of) credit losses(1,643)29,232 (469)178,431 8,904 
PPNR (non-GAAP)
$105,322 $115,144 $104,059 $427,790 $412,900 
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 December 31, 2020 (dollars in thousands):
Total loans (GAAP)$23,866,042 
Less: Government insured residential loans1,419,074 
Less: PPP loans781,811 
Less: MWL1,259,408 
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)$20,405,749 
ACL$257,323 
ACL to total loans (GAAP)1.08 %
ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)1.26 %
13


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, 2020September 30, 2020December 31, 2019
Total stockholders’ equity$2,983,012 $2,864,824 $2,980,779 
Less: goodwill and other intangible assets77,637 77,641 77,674 
Tangible stockholders’ equity$2,905,375 $2,787,183 $2,903,105 
 
Common shares issued and outstanding93,067,500 92,388,641 95,128,231 
 
Book value per common share$32.05 $31.01 $31.33 
 
Tangible book value per common share$31.22 $30.17 $30.52 
14

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