EX-99.1 2 earningsdocex99120210630.htm EX-99.1 Document

Exhibit 99.1
 
BANKUNITED, INC. REPORTS SECOND QUARTER 2021 RESULTS
 
Miami Lakes, Fla. — July 22, 2021 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended June 30, 2021.
“We're very happy with results for the quarter and optimistic about a strong economic recovery" said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended June 30, 2021, the Company reported net income of $104.0 million, or $1.11 per diluted share, compared to $98.8 million or $1.06 per diluted share for the immediately preceding quarter ended March 31, 2021 and $76.5 million, or $0.80 per diluted share, for the quarter ended June 30, 2020.
For the six months ended June 30, 2021, the Company reported net income of $202.8 million, or $2.17 per diluted share, compared to $45.6 million, or $0.47 per diluted share, for the six months ended June 30, 2020. On an annualized basis, earnings for the six months ended June 30, 2021 generated a return on average stockholders' equity of 13.2% and a return on average assets of 1.15%.
Financial Highlights
•Pre-tax, pre-provision net revenue ("PPNR") was $112.6 million for the quarter ended June 30, 2021 compared to $103.3 million for the immediately preceding quarter ended March 31, 2021 and $122.3 million for the quarter ended June 30, 2020. For the six months ended June 30, 2021 and 2020, PPNR was $215.9 million and $207.3 million, respectively.
•Net interest income increased by $2.1 million compared to the immediately preceding quarter ended March 31, 2021 and by $8.0 million compared to the quarter ended June 30, 2020. The net interest margin calculated on a tax-equivalent basis, impacted by elevated levels of liquidity, decreased to 2.37% for the quarter ended June 30, 2021 from 2.39% for both the immediately preceding quarter ended March 31, 2021 and the quarter ended June 30, 2020.
•The average cost of total deposits continued to decline, dropping by 0.08% to 0.25% for the quarter ended June 30, 2021 from 0.33% for the immediately preceding quarter ended March 31, 2021, and 0.80% for the quarter ended June 30, 2020. On a spot basis, the average annual percentage yield ("APY") on total deposits declined to 0.22% at June 30, 2021 from 0.27% at March 31, 2021 and 0.36% at December 31, 2020.
•For the quarter ended June 30, 2021, the Company recorded a recovery of credit losses of $(27.5) million compared to a recovery of $(28.0) million for the immediately preceding quarter ended March 31, 2021 and a provision for credit losses of $25.4 million for the quarter ended June 30, 2020. For the six months ended June 30, 2021 and 2020, the provision for (recovery of) credit losses was $(55.5) million and $150.8 million, respectively.
•As expected, the Company's levels of criticized and classified loans, which had increased as a result of the COVID-19 pandemic, have started to decline. During the quarter ended June 30, 2021, total criticized and classified loans declined by $541 million or 21%, to $2.1 billion at June 30, 2021 from $2.6 billion at March 31, 2021.
•Loans currently under short-term deferral totaled $41 million and loans modified under the CARES Act totaled $456 million for a total of $497 million at June 30, 2021, down from a total of $762 million at March 31, 2021.
•Non-interest bearing demand deposits grew by $869 million during the quarter ended June 30, 2021 while total deposits grew by $877 million. Average non-interest bearing demand deposits grew by $673 million for the quarter ended June 30, 2021 compared to the immediately preceding quarter and by $2.9 billion compared to the second quarter of the prior year. At June 30, 2021, non-interest bearing demand deposits represented 31% of total deposits, compared to 25% of total deposits at December 31, 2020.
•Investment securities grew by $987 million for the quarter ended June 30, 2021, while loans and operating leases, excluding PPP loans, declined by $69 million. Excess liquidity was deployed into the investment portfolio during the quarter as loan growth continued to lag growth in deposits.
1

•Book value per common share and tangible book value per common share at June 30, 2021 increased to $33.91 and $33.08, respectively, from $32.05 and $31.22, respectively at December 31, 2020.
•On July 21, 2021, the Company's Board of Directors authorized the repurchase of up to an additional $150 million in shares of its outstanding common stock.
Loans and Leases
A comparison of loan and lease portfolio composition at the dates indicated follows (dollars in thousands):
June 30, 2021March 31, 2021December 31, 2020
Residential and other consumer loans$7,076,274 30.9 %$6,582,447 28.1 %$6,348,222 26.6 %
Multi-family1,256,711 5.5 %1,507,462 6.5 %1,639,201 6.9 %
Non-owner occupied commercial real estate4,724,183 20.7 %4,871,110 20.9 %4,963,273 20.8 %
Construction and land218,634 1.0 %287,821 1.2 %293,307 1.2 %
Owner occupied commercial real estate1,960,900 8.6 %1,932,153 8.3 %2,000,770 8.4 %
Commercial and industrial4,205,795 18.4 %4,048,473 17.3 %4,447,383 18.6 %
PPP491,960 2.1 %911,951 3.9 %781,811 3.3 %
Pinnacle1,046,537 4.6 %1,088,685 4.7 %1,107,386 4.6 %
Bridge - franchise finance463,874 2.0 %524,617 2.2 %549,733 2.3 %
Bridge - equipment finance421,939 1.8 %460,391 2.0 %475,548 2.0 %
Mortgage warehouse lending ("MWL")1,018,267 4.4 %1,145,957 4.9 %1,259,408 5.3 %
$22,885,074 100.0 %$23,361,067 100.0 %$23,866,042 100.0 %
Operating lease equipment, net$667,935 $681,003 $663,517 
Residential and other consumer loans grew by $494 million during the quarter, including growth of $102 million in GNMA early buyout loans and $392 million of growth in the rest of the portfolio. GNMA early buyout loans totaled $1.8 billion at June 30, 2021.
Commercial and industrial loans, including owner-occupied commercial real estate, grew by $186 million for the quarter ended June 30, 2021. The remaining commercial portfolio segments showed net declines for the quarter. The New York multi-family portfolio continued to run off, declining by $225 million. MWL line utilization was 52% at June 30, 2021 compared to 55% at March 31, 2021 and 62% at December 31, 2020.
PPP loans declined by $420 million during the quarter ended June 30, 2021 as $438 million in loans originated under the First Draw Program were fully or partially forgiven. PPP loans under the Second Draw Program totaling $17 million were originated during the quarter.
2

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 June 30, 2021 (dollars in thousands):
Non-Performing Loans Currently Under Short-Term DeferralCARES Act Modification
Residential and other consumer (1)
$45,553 $38,584 $20,135 
Commercial:
CRE by Property Type:
Retail 21,382 — 15,871 
Hotel 22,143 — 225,436 
Office 5,263 1,681 43,179 
Multi-family9,602 — 13,872 
Other 4,783 — — 
Owner occupied commercial real estate 26,582 — 15,223 
Commercial and industrial 123,950 524 96,545 
Bridge - franchise finance 33,405—25,647
Total commercial247,1102,205435,773
Total $292,663 $40,789 $455,908 
(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 June 30, 2021 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 increased to $292.7 million or 1.28% of total loans at June 30, 2021, from $233.6 million or 1.00% of total loans at March 31, 2021 and $244.5 million or 1.02% of total loans at December 31, 2020. The increase in non-performing loans during the quarter ended June 30, 2021 was primarily attributable to one $69 million commercial and industrial relationship. Non-performing loans in the majority of portfolio sub-segments declined during the quarter ended June 30, 2021. Non-performing loans included $47.7 million, $48.2 million and $51.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.21%, 0.21% and 0.22% of total loans at June 30, 2021, March 31, 2021 and December 31, 2020, respectively.
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
June 30, 2021March 31, 2021December 31, 2020
Special mention$138,064 $420,331 $711,516 
Substandard - accruing1,684,666 1,983,191 1,758,654
Substandard - non-accruing229,646 189,589 203,758
Doubtful17,332 17,903 11,867 
Total $2,069,708 $2,611,014 $2,685,795 
As expected, total criticized and classified loans declined during the quarter ended June 30, 2021. The increase in substandard non-accruing loans was related primarily to the commercial and industrial relationship discussed above.
3

The following table presents the ACL at the dates indicated, related ACL coverage ratios and net charge-off rates for the quarters ended June 30, 2021 and March 31, 2021 and the year ended December 31, 2020 (dollars in thousands):
ACL
ACL to Total Loans (1)
ACL to Non-Performing Loans
Net Charge-offs to Average Loans (2)
December 31, 2020 $257,323 1.08 %105.26 %0.26 %
March 31, 2021$220,934 0.95 %94.56 %0.17 %
June 30, 2021$175,642 0.77 %60.02 %0.24 %
(1)    ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.90%, 1.13% and 1.26% at June 30, 2021, March 31, 2021 and December 31, 2020, respectively.
(2)    Annualized for the periods ended March 31 and June 30, 2021.
The ACL at June 30, 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 June 2021, 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 and in ACL coverage ratios from December 31, 2020 to June 30, 2021 related primarily to the recovery of credit losses recorded during the six months ended June 30, 2021 and to a lesser extent, charge-offs.
For the quarter ended June 30, 2021, the Company recorded a recovery of credit losses of $(27.5) million, which included a recovery of $(27.7) million related to funded loans, partially offset by an immaterial provision related to unfunded loan commitments. The recovery of provision for credit losses was largely driven by improvements in forecasted economic conditions, the reduction in criticized and classified loans and a reduction in certain qualitative loss factors. These impacts were partially offset by an increase in the ACL on non-performing loans, primarily an increase of $27.2 million in the reserve related to the commercial relationship discussed above.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Beginning balance$220,934 $250,579 $257,323 $108,671 
Cumulative effect of adoption of CECL— — — 27,305 
Balance after adoption of CECL220,934 250,579 257,323 135,976 
Provision (recovery)(27,663)31,584 (53,969)153,449 
Net charge-offs(17,629)(16,040)(27,712)(23,302)
Ending balance$175,642 $266,123 $175,642 $266,123 
Net interest income
Net interest income for the quarter ended June 30, 2021 increased to $198.3 million from $196.2 million for the immediately preceding quarter ended March 31, 2021 and $190.3 million for the quarter ended June 30, 2020.
Interest income decreased by $3.6 million for the quarter ended June 30, 2021 compared to the immediately preceding quarter, and by $26.0 million compared to the quarter ended June 30, 2020. Interest expense decreased by $5.7 million compared to the immediately preceding quarter and by $34.0 million compared to the quarter ended June 30, 2020. Decreases in interest income resulted from the impact on portfolio yields of declines in market interest rates in early 2020 including the impact of repayment of assets originated in a higher rate environment and origination of assets at lower prevailing rates, as well as a decline in average loans. Declines in interest expense also reflected the impact of decreases in market interest rates, 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, decreased by 0.02% to 2.37% for the quarter ended June 30, 2021, from 2.39% for both the immediately preceding quarter ended March 31, 2021 and the quarter ended June 30, 2020. The net interest margin for the quarter ended June 30, 2021 was negatively impacted by excess liquidity, reflected in higher levels of cash as well as deployment of liquidity into the investment portfolio as loan production lagged deposit growth. Offsetting factors impacting the net interest margin for the quarter ended June 30, 2021 included:
•The average rate paid on interest bearing deposits decreased to 0.35% for the quarter ended June 30, 2021, from 0.45% for the quarter ended March 31, 2021. This decline reflected continued initiatives taken to lower rates paid on deposits including the re-pricing of term deposits.
4

•The tax-equivalent yield on investment securities decreased to 1.56% for the quarter ended June 30, 2021 from 1.73% for the quarter ended March 31, 2021. This decrease resulted from the impact of purchases of lower-yielding securities coupled with amortization, maturities and prepayment of securities purchased in a higher rate environment. Accounting adjustments related to faster prepayment speeds of securities purchased at a premium negatively impacted the yield on investment securities for the quarter ended June 30, 2021 by approximately 0.10%.
•The tax-equivalent yield on loans increased to 3.59% for the quarter ended June 30, 2021, from 3.58% for the quarter ended March 31, 2021. Accelerated amortization of origination fees on PPP loans that were partially or fully forgiven during the quarter impacted the yield on loans by approximately 0.11% for the quarter ended June 30, 2021, compared to 0.06% for the quarter ended March 31, 2021. Factoring out the impact of accelerated amortization of PPP origination fees, the yield on loans for the quarter ended June 30, 2021 decreased by 0.04% compared to the immediately preceding quarter.
•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.
Capital Actions
On July 21, 2021, the Company's Board of Directors authorized the repurchase of up to $150 million in shares of its outstanding common stock. This authorization is in addition to $37.7 million in remaining authorization under a previously announced 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 without prior notice at any time.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, July 22, 2021 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 http://www.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 7297918. A replay of the call will be available from 12:00 p.m. ET on July 22nd through 11:59 p.m. ET on July 29th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 7297918. 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 $35.7 billion at June 30, 2021, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 65 banking centers in 13 Florida counties and 4 banking centers in the New York metropolitan area at June 30, 2021.
5

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).
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) 
June 30,
2021		December 31,
2020
ASSETS  
Cash and due from banks:  
Non-interest bearing$17,902 $20,233 
Interest bearing877,446 377,483 
Cash and cash equivalents 895,348 397,716 
Investment securities (including securities recorded at fair value of $10,222,035 and $9,166,683)10,232,035 9,176,683 
Non-marketable equity securities164,959 195,865 
Loans held for sale— 24,676 
Loans22,885,074 23,866,042 
Allowance for credit losses (175,642)(257,323)
Loans, net22,709,432 23,608,719 
Bank owned life insurance 303,519 294,629 
Operating lease equipment, net667,935 663,517 
Goodwill77,637 77,637 
Other assets649,422 571,051 
Total assets$35,700,287 $35,010,493 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Demand deposits:  
Non-interest bearing$8,834,228 $7,008,838 
Interest bearing3,218,441 3,020,039 
Savings and money market13,578,526 12,659,740 
Time2,978,074 4,807,199 
Total deposits28,609,269 27,495,816 
Federal funds purchased— 180,000 
FHLB advances2,681,505 3,122,999 
Notes and other borrowings721,639 722,495 
Other liabilities526,331 506,171 
Total liabilities 32,538,744 32,027,481 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 93,238,553 and 93,067,500 shares issued and outstanding932 931 
Paid-in capital1,011,786 1,017,518 
Retained earnings2,173,698 2,013,715 
Accumulated other comprehensive loss(24,873)(49,152)
Total stockholders' equity 3,161,543 2,983,012 
Total liabilities and stockholders' equity $35,700,287 $35,010,493 

7

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
Three Months EndedSix Months Ended
 June 30,March 31,June 30,June 30,June 30,
 20212021202020212020
Interest income:    
Loans$202,520 $205,335 $213,938 $407,855 $448,297 
Investment securities37,674 38,501 50,932 76,175 106,992 
Other1,607 1,593 2,908 3,200 6,628 
Total interest income 241,801 245,429 267,778 487,230 561,917 
Interest expense:
Deposits17,316 22,376 50,187 39,692 133,009 
Borrowings26,174 26,813 27,254 52,987 57,995 
Total interest expense 43,490 49,189 77,441 92,679 191,004 
Net interest income before provision for credit losses 198,311 196,240 190,337 394,551 370,913 
Provision for (recovery of) credit losses (27,534)(27,989)25,414 (55,523)150,842 
Net interest income after provision for credit losses 225,845 224,229 164,923 450,074 220,071 
Non-interest income:
Deposit service charges and fees5,417 4,900 3,701 10,317 7,887 
Gain on sale of loans, net
2,234 1,754 4,326 3,988 7,792 
Gain on investment securities, net4,155 2,365 6,836 6,520 3,383 
Lease financing13,522 12,488 16,150 26,010 31,631 
Other non-interest income7,429 8,789 7,338 16,218 10,956 
Total non-interest income 32,757 30,296 38,351 63,053 61,649 
Non-interest expense:
Employee compensation and benefits56,459 59,288 48,877 115,747 107,764 
Occupancy and equipment 11,492 11,875 11,901 23,367 24,270 
Deposit insurance expense4,222 7,450 4,806 11,672 9,209 
Professional fees 2,139 1,912 3,131 4,051 6,335 
Technology and telecommunications16,851 15,741 14,025 32,592 26,621 
Depreciation of operating lease equipment12,834 12,217 12,219 25,051 24,822 
Other non-interest expense14,455 14,738 11,411 29,193 26,217 
Total non-interest expense 118,452 123,221 106,370 241,673 225,238 
Income before income taxes140,150 131,304 96,904 271,454 56,482 
Provision for income taxes36,176 32,490 20,396 68,666 10,925 
Net income$103,974 $98,814 $76,508 $202,788 $45,557 
Earnings per common share, basic$1.12 $1.06 $0.80 $2.18 $0.47 
Earnings per common share, diluted$1.11 $1.06 $0.80 $2.17 $0.47 

8

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Three Months Ended
June 30, 2021		Three Months Ended
March 31, 2021		Three Months Ended
June 30, 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 $22,996,564 $205,940 3.59 %$23,549,309 $208,821 3.58 %$23,534,684 $217,691 3.71 %
Investment securities (3)
9,839,422 38,338 1.56 %9,070,185 39,188 1.73 %8,325,217 51,684 2.48 %
Other interest earning assets1,380,317 1,607 0.47 %1,062,840 1,593 0.61 %765,848 2,908 1.53 %
Total interest earning assets34,216,303 245,885 2.88 %33,682,334 249,602 2.98 %32,625,749 272,283 3.35 %
Allowance for credit losses(215,151)(254,438)(254,396)
Non-interest earning assets1,732,676 1,724,176 1,976,398 
Total assets$35,733,828 $35,152,072 $34,347,751 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$3,069,945 $2,594 0.34 %$2,942,874 $2,774 0.38 %$2,448,545 $4,722 0.78 %
Savings and money market deposits13,541,237 11,307 0.33 %12,793,019 12,127 0.38 %10,450,310 17,447 0.67 %
Time deposits3,380,582 3,415 0.41 %4,330,781 7,475 0.70 %7,096,097 28,018 1.59 %
Total interest bearing deposits19,991,764 17,316 0.35 %20,066,674 22,376 0.45 %19,994,952 50,187 1.01 %
Federal funds purchased— — — %8,000 3 0.15 %119,835 32 0.11 %
FHLB and PPPLF borrowings2,873,922 16,922 2.36 %3,072,717 17,558 2.32 %4,961,376 21,054 1.71 %
Notes and other borrowings721,753 9,252 5.13 %722,305 9,252 5.12 %493,278 6,168 5.00 %
Total interest bearing liabilities23,587,439 43,490 0.74 %23,869,696 49,189 0.83 %25,569,441 77,441 1.22 %
Non-interest bearing demand deposits8,163,879 7,491,249 5,313,009 
Other non-interest bearing liabilities851,044 746,973 820,439 
Total liabilities32,602,362 32,107,918 31,702,889 
Stockholders' equity3,131,466 3,044,154 2,644,862 
Total liabilities and stockholders' equity$35,733,828 $35,152,072 $34,347,751 
Net interest income$202,395 $200,413 $194,842 
Interest rate spread2.14 %2.15 %2.13 %
Net interest margin2.37 %2.39 %2.39 %
(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)
Six Months Ended June 30,
20212020
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans $23,271,410 $414,761 3.58 %$23,192,374 $455,799 3.94 %
Investment securities (3)
9,456,929 77,525 1.64 %8,216,433 108,635 2.64 %
Other interest earning assets1,222,456 3,200 0.53 %706,238 6,628 1.89 %
Total interest earning assets33,950,795 495,486 2.93 %32,115,045 571,062 3.57 %
Allowance for credit losses(234,686)(196,619)
Non-interest earning assets1,728,449 1,863,074 
Total assets$35,444,558 $33,781,500 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$3,006,760 5,368 0.36 %$2,311,086 11,681 1.02 %
Savings and money market deposits13,169,195 23,434 0.36 %10,431,256 55,203 1.06 %
Time deposits3,853,057 10,890 0.57 %7,303,083 66,125 1.82 %
Total interest bearing deposits20,029,012 39,692 0.40 %20,045,425 133,009 1.33 %
Federal funds purchased3,978 2 0.10 %106,951 399 0.75 %
FHLB and PPPLF borrowings2,972,770 34,480 2.34 %4,688,102 46,138 1.98 %
Notes and other borrowings722,028 18,505 5.13 %461,188 11,458 4.97 %
Total interest bearing liabilities23,727,788 92,679 0.79 %25,301,666 191,004 1.52 %
Non-interest bearing demand deposits7,829,422 4,840,781 
Other non-interest bearing liabilities799,297 784,770 
Total liabilities32,356,507 30,927,217 
Stockholders' equity3,088,051 2,854,283 
Total liabilities and stockholders' equity$35,444,558 $33,781,500 
Net interest income$402,807 $380,058 
Interest rate spread2.14 %2.05 %
Net interest margin2.38 %2.37 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    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 June 30,Six Months Ended June 30,
c2021202020212020
Basic earnings per common share:  
Numerator: 
Net income$103,974 $76,508 $202,788 $45,557 
Distributed and undistributed earnings allocated to participating securities
(1,338)(3,353)(2,589)(1,939)
Income allocated to common stockholders for basic earnings per common share$102,636 $73,155 $200,199 $43,618 
Denominator:
Weighted average common shares outstanding93,245,282 92,409,949 93,160,962 93,177,243 
Less average unvested stock awards(1,241,381)(1,207,798)(1,223,555)(1,154,589)
Weighted average shares for basic earnings per common share92,003,901 91,202,151 91,937,407 92,022,654 
Basic earnings per common share$1.12 $0.80 $2.18 $0.47 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share$102,636 $73,155 $200,199 $43,618 
Adjustment for earnings reallocated from participating securities
2 — 3 — 
Income used in calculating diluted earnings per common share$102,638 $73,155 $200,202 $43,618 
Denominator:
Weighted average shares for basic earnings per common share92,003,901 91,202,151 91,937,407 92,022,654 
Dilutive effect of stock options and certain shared-based awards181,061 705 137,542 126,858 
Weighted average shares for diluted earnings per common share
92,184,962 91,202,856 92,074,949 92,149,512 
Diluted earnings per common share$1.11 $0.80 $2.17 $0.47 

11


BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Financial ratios (4)
    
Return on average assets1.17 %0.90 %1.15 %0.27 %
Return on average stockholders’ equity13.3 %11.6 %13.2 %3.2 %
Net interest margin (3)
2.37 %2.39 %2.38 %2.37 %
 June 30, 2021December 31, 2020
Asset quality ratios  
Non-performing loans to total loans (1)(5)
1.28 %1.02 %
Non-performing assets to total assets (2)(5)
0.83 %0.71 %
Allowance for credit losses to total loans0.77 %1.08 %
Allowance for credit losses to non-performing loans (1)(5)
60.02 %105.26 %
Net charge-offs to average loans (4)
0.24 %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 and six month periods.
(5)    Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $47.7 million or 0.21% of total loans and 0.13% of total assets, at June 30, 2021; and $51.3 million or 0.22% of total loans and 0.15% of total assets, at December 31, 2020.

June 30, 2021December 31, 2020Required to be Considered Well Capitalized
BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.
Capital ratios
Tier 1 leverage8.8 %9.8 %8.6 %9.5 %5.0 %
Common Equity Tier 1 ("CET1") risk-based capital13.5 %15.1 %12.6 %13.9 %6.5 %
Total risk-based capital15.4 %15.7 %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 13.4% and 15.0%, respectively, at June 30, 2021.
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 volatility of the provision for credit losses resulting from the COVID-19 pandemic. This measure also provides a meaningful basis for comparison to other financial institutions since it is commonly employed and is a measure frequently cited by investors and analysts. The following table reconciles the non-GAAP financial measurement of PPNR to the comparable GAAP financial measurement of income before income taxes for the periods indicated (in thousands):
Three Months EndedSix Months Ended June 30,
June 30, 2021March 31, 2021June 30, 202020212020
Income before income taxes (GAAP)
$140,150 $131,304 $96,904 $271,454 $56,482 
Plus: Provision for (recovery of) credit losses
(27,534)(27,989)25,414 (55,523)150,842 
PPNR (non-GAAP)
$112,616 $103,315 $122,318 $215,931 $207,324 
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 June 30, 2021, March 31, 2021 and December 31, 2020 (dollars in thousands):
June 30, 2021March 31, 2021December 31, 2020
Total loans (GAAP)$22,885,074$23,361,067$23,866,042
Less: Government insured residential loans1,863,7231,759,2891,419,074
Less: PPP loans491,960911,951781,811
Less: MWL1,018,2671,145,9571,259,408
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)$19,511,124$19,543,870$20,405,749
ACL$175,642$220,934$257,323
ACL to total loans (GAAP)0.77 %0.95 %1.08 %
ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)0.90 %1.13 %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): 
June 30, 2021December 31, 2020
Total stockholders’ equity (GAAP)$3,161,543 $2,983,012 
Less: goodwill77,637 77,637 
Tangible stockholders’ equity (non-GAAP)$3,083,906 $2,905,375 
 
Common shares issued and outstanding93,238,553 93,067,500 
 
Book value per common share (GAAP)$33.91 $32.05 
 
Tangible book value per common share (non-GAAP)$33.08 $31.22 
14