EX-99.1 2 earningsdocex99120230930.htm EX-99.1 Document

Exhibit 99.1
BANKUNITED, INC. REPORTS THIRD QUARTER 2023 RESULTS

Miami Lakes, Fla. — October 19, 2023 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended September 30, 2023.
"This quarter we made significant progress on key strategic priorities. Margin, the funding mix, asset mix, capital and liquidity all improved, while continuing to prepare for a possible economic slowdown," said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended September 30, 2023, the Company reported net income of $47.0 million, or $0.63 per diluted share, compared to $58.0 million, or $0.78 per diluted share for the immediately preceding quarter ended June 30, 2023 and $87.9 million, or $1.12 per diluted share, for the quarter ended September 30, 2022. Earnings for the quarter ended September 30, 2023 were impacted by an increase in the provision for credit losses, the most significant driver of which was the impact of a less favorable economic forecast, while annualized net charge-offs remained low at 0.07%. For the nine months ended September 30, 2023, the Company reported net income of $157.9 million or $2.11 per diluted share compared to $220.8 million or $2.71 per diluted share for the nine months ended September 30, 2022.
Quarterly Highlights
•We gained momentum executing on near-term strategic priorities this quarter:
◦The net interest margin, calculated on a tax-equivalent basis, expanded this quarter to 2.56% from 2.47% for the immediately preceding quarter.
◦Non-brokered deposits grew by $484 million for the quarter ended September 30, 2023. Total deposits grew by $274 million.
◦Non-interest bearing deposits grew by $52 million for the quarter, remaining consistent at 28% of total deposits at both September 30, 2023 and June 30, 2023.
◦Residential loans declined by $225 million and securities declined by $257 million for the quarter, while our core C&I and commercial real estate portfolios grew by a net $147 million.
◦FHLB advances declined by $810 million for the quarter, as consistent with our strategy to re-position the balance sheet, cash flows from the residential and securities portfolios were used to pay down wholesale funding.
◦The loans to deposits ratio declined to 93.3% at September 30, 2023, from 95.3% at June 30, 2023.
◦We have maintained ample liquidity. Total same day available liquidity was $14.4 billion, the available liquidity to uninsured, uncollateralized deposits ratio was 161% and an estimated 66% of our deposits were insured or collateralized at September 30, 2023.
◦Our capital position remains robust. At September 30, 2023, CET1 increased to 11.4% at the holding company and 13.2% at the Bank. Pro-forma CET1 at the holding company and the Bank, including accumulated other comprehensive income, were 9.8% and 11.5%, respectively at September 30, 2023.
•For the quarter ended September 30, 2023, the provision for credit losses was $33.0 million. The ratio of the ACL to total loans increased to 0.80%, at September 30, 2023 from 0.68% at June 30, 2023. The largest driver of the provision for credit losses and increase in the ACL for the quarter was a less favorable economic forecast.
•The annualized net charge-off ratio for the nine months ended September 30, 2023 was 0.07%. NPAs remained low, totaling $140.5 million at September 30, 2023 compared to $120.8 million at June 30, 2023. Most of the increase was in the franchise finance portfolio. The NPA ratio at September 30, 2023 was 0.40%, including 0.11% related to the guaranteed portion of non-performing SBA loans. At June 30, 2023 the NPA ratio was 0.34%, including 0.10% related to the guaranteed portion of non-performing SBA loans.
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•Total loans declined by $274 million quarter-over-quarter. As expected, most of the decline was attributable to residential which was down by $225 million.
•Consistent with industry trends, rising interest rates and restrictive monetary policy contributed to an increase in the average cost of total deposits to 2.74% for the quarter ended September 30, 2023 from 2.46% for the immediately preceding quarter. This increase of 0.28% was smaller than the 0.41% increase in the cost of deposits for the quarter ended June 30, 2023, continuing the trend of a declining rate of increase in deposit costs. The yield on average interest earning assets increased to 5.52% for the quarter ended September 30, 2023 from 5.30% for the immediately preceding quarter.
•Commercial real estate exposure is modest. Commercial real estate loans totaled 23.5% of loans at September 30, 2023, representing 168% of the Bank's total risk based capital. At September 30, 2023, the weighted average LTV of the CRE portfolio was 55.8% and the weighted average DSCR was 1.80. 58% of the portfolio was secured by collateral properties located in Florida and 25% was secured by properties in the New York tri-state area.
•We remain committed to keeping the duration of our securities portfolio short; the duration of the available for sale securities portfolio was 2.02 at September 30, 2023. Held to maturity securities were not significant.
•Book value and tangible book value per common share were $33.92 and $32.88, respectively, at September 30, 2023, compared to $33.94 and $32.90, respectively at June 30, 2023.
•In October 2023, BankUnited was named #1 on the list of the healthiest 100 workplaces in America published by Healthiest Employers/Springbuk, highlighting our commitment to employee wellness initiatives and programs.
Deposits and Funding
Total deposits grew by $274 million during the quarter ended September 30, 2023. Non-interest bearing demand deposits grew by $52 million, interest-bearing non-maturity deposits grew by $552 million and time deposits declined by $330 million.
Consistent with the current interest rate environment and restrictive monetary policy, the cost of total deposits increased to 2.74% from 2.46% for the immediately preceding quarter, while the cost of interest bearing deposits increased to 3.76% for the quarter ended September 30, 2023 from 3.39% for the preceding quarter.
FHLB advances declined by $810 million for the quarter, as we used cash flows from the residential and securities portfolios to reduce wholesale funding levels and allow for future re-deployment of capital into higher yielding assets.
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
September 30, 2023June 30, 2023December 31, 2022
Residential$8,380,568 34.4 %$8,605,838 34.9 %$8,900,714 35.7 %
Non-owner occupied commercial real estate5,296,784 21.7 %5,302,523 21.5 %5,405,597 21.7 %
Construction and land445,273 1.8 %393,464 1.6 %294,360 1.2 %
Owner occupied commercial real estate1,851,246 7.6 %1,832,586 7.4 %1,890,813 7.6 %
Commercial and industrial6,658,010 27.4 %6,575,368 26.8 %6,417,721 25.9 %
Pinnacle - municipal finance900,199 3.7 %951,529 3.9 %912,122 3.7 %
Franchise finance196,745 0.8 %207,783 0.8 %253,774 1.0 %
Equipment finance219,874 0.9 %237,816 1.0 %286,147 1.1 %
Mortgage warehouse lending ("MWL")407,577 1.7 %523,083 2.1 %524,740 2.1 %
$24,356,276 100.0 %$24,629,990 100.0 %$24,885,988 100.0 %

Consistent with our balance sheet strategy, for the quarter ended September 30, 2023, residential loans declined by $225 million while C&I grew by $101 million and CRE grew by $46 million. Franchise and equipment finance declined by $29 million in aggregate, MWL declined by $116 million, primarily due to low levels of activity in the residential real estate sector, and municipal finance declined by $51 million. As we continue to emphasize high quality relationship based lending, we chose to
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exit approximately $297 million of commercial loans during the quarter due to lower profitability, the lack of deposit relationships or, in some cases, to take advantage of opportunities to reduce criticized and classified assets.
Asset Quality and the Allowance for Credit Losses ("ACL")
The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the periods ended September 30, 2023, June 30, 2023 and December 31, 2022 (dollars in thousands):
ACLACL to Total LoansACL to Non-Performing Loans
Net Charge-offs to Average Loans (1)
December 31, 2022$147,946 0.59 %140.88 %0.22 %
June 30, 2023$166,833 0.68 %140.52 %0.09 %
September 30, 2023$196,063 0.80 %143.22 %0.07 %
(1)    Annualized for the six months ended June 30, 2023 and the nine months ended September 30, 2023.
The ACL at September 30, 2023 represents management's estimate of lifetime expected credit losses given an assessment of historical data, current conditions, and a reasonable and supportable economic forecast as of the balance sheet date. For the quarter ended September 30, 2023, the provision for credit losses was $33.0 million, including $30.9 million related to funded loans. The most significant factor impacting the provision for credit losses and increase in the ACL for the quarter ended September 30, 2023 was the impact on quantitative modeling of a less favorable economic forecast. Changes in portfolio composition as well as risk rating migration and increases in certain specific reserves also had an impact.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
Three Months EndedNine Months Ended
 September 30, 2023June 30, 2023September 30, 2022September 30, 2023September 30, 2022
Beginning balance$166,833 $158,792 $130,239 $147,946 $126,457 
Impact of adoption of new accounting pronouncement (ASU 2022-02)N/A
N/A
N/A(1,794)N/A
Balance after impact of adoption of new accounting pronouncement (ASU 2022-02)166,833 158,792 130,239 146,152 126,457 
Provision30,877 14,195 2,753 62,667 33,406 
Net charge-offs(1,647)(6,154)(2,321)(12,756)(29,192)
Ending balance$196,063 $166,833 $130,671 $196,063 $130,671 
Non-performing loans totaled $136.9 million or 0.56% of total loans at September 30, 2023, compared to $118.7 million or 0.48% of total loans at June 30, 2023. Non-performing loans included $37.8 million and $35.9 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.16% and 0.15% of total loans at September 30, 2023 and June 30, 2023, respectively.
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
September 30, 2023June 30, 2023December 31, 2022
Special mention$341,999 $233,004 $51,433 
Substandard - accruing534,336 525,643 605,965 
Substandard - non-accruing96,248 80,642 75,125 
Doubtful19,344 14,954 7,990 
Total $991,927 $854,243 $740,513 
Net Interest Income
Net interest income for the quarter ended September 30, 2023 was $214.8 million, compared to $213.9 million for the immediately preceding quarter ended June 30, 2023 and $235.8 million for the quarter ended September 30, 2022. Interest income increased by $7.1 million for the quarter ended September 30, 2023 compared to the immediately preceding quarter while interest expense increased by $6.2 million.
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The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.09% to 2.56% for the quarter ended September 30, 2023, from 2.47% for the immediately preceding quarter ended June 30, 2023. Factors impacting the net interest margin for the quarter ended September 30, 2023 were:
•The tax-equivalent yield on loans increased to 5.54% for the quarter ended September 30, 2023, from 5.35% for the quarter ended June 30, 2023. The resetting of variable rate loans to higher coupon rates, paydown of lower rate residential loans and origination of new loans at higher rates contributed to the increase.
•The tax-equivalent yield on investment securities increased to 5.48% for the quarter ended September 30, 2023, from 5.19% for the quarter ended June 30, 2023. This increase resulted primarily from the reset of coupon rates on variable rate securities.
•The average cost of interest bearing deposits increased to 3.76% for the quarter ended September 30, 2023 from 3.39% for the quarter ended June 30, 2023, in response to the interest rate environment.
•The average rate paid on FHLB advances decreased to 4.57% for the quarter ended September 30, 2023, from 4.59% for the quarter ended June 30, 2023, primarily due to repayment of higher rate advances.
•The reduction in the proportion of total funding comprised of more expensive wholesale funding also contributed to the increase in the net interest margin.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, October 19, 2023 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BI8dd0dafa7e284086a3d06fd4752fdebf. For those unable to join the live event, an archived webcast will be available in the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.
About BankUnited, Inc.
BankUnited, Inc., with total assets of $35.4 billion at September 30, 2023, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida that provides a full range of banking and related services to individual and corporate customers through banking centers located in the state of Florida, the New York metropolitan area and Dallas, Texas, and a comprehensive suite of wholesale products to customers through an Atlanta office focused on the Southeast region. BankUnited also offers certain commercial lending and deposit products through national platforms. For additional information, call (877) 779-2265 or visit www.BankUnited.com.
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. 
The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitation) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control, such as but not limited to adverse events or conditions impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 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.
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BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data) 
September 30,
2023		June 30,
2023		December 31,
2022
ASSETS  
Cash and due from banks:  
Non-interest bearing$12,391 $18,355 $16,068 
Interest bearing379,494 282,814 556,579 
Cash and cash equivalents 391,885 301,169 572,647 
Investment securities (including securities reported at fair value of $8,876,484, $9,133,937 and $9,745,327)
8,886,484 9,143,937 9,755,327 
Non-marketable equity securities312,159 317,759 294,172 
Loans24,356,276 24,629,990 24,885,988 
Allowance for credit losses (196,063)(166,833)(147,946)
Loans, net24,160,213 24,463,157 24,738,042 
Bank owned life insurance 319,808 318,935 308,212 
Operating lease equipment, net460,146 514,734 539,799 
Goodwill77,637 77,637 77,637 
Other assets781,332 734,151 740,876 
Total assets$35,389,664 $35,871,479 $37,026,712 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Demand deposits:  
Non-interest bearing$7,356,523 $7,304,735 $8,037,848 
Interest bearing3,290,391 2,929,870 2,142,067 
Savings and money market10,276,071 10,084,276 13,061,341 
Time5,189,681 5,519,771 4,268,078 
Total deposits26,112,666 25,838,652 27,509,334 
Federal funds purchased— — 190,000 
FHLB advances5,165,000 5,975,000 5,420,000 
Notes and other borrowings715,197 715,302 720,923 
Other liabilities872,731 816,215 750,474 
Total liabilities 32,865,594 33,345,169 34,590,731 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,413,059, 74,429,948 and 75,674,587 shares issued and outstanding
744 744 757 
Paid-in capital279,672 274,202 321,729 
Retained earnings2,650,850 2,623,926 2,551,400 
Accumulated other comprehensive loss(407,196)(372,562)(437,905)
Total stockholders' equity 2,524,070 2,526,310 2,435,981 
Total liabilities and stockholders' equity $35,389,664 $35,871,479 $37,026,712 

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BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
Three Months EndedNine Months Ended
 September 30,June 30,September 30,September 30,September 30,
 20232023202220232022
Interest income:  
Loans$337,014 $326,153 $244,884 $971,962 $645,669 
Investment securities122,857 120,604 77,109 362,219 174,928 
Other10,668 16,664 4,031 40,195 8,364 
Total interest income 470,539 463,421 326,024 1,374,376 828,961 
Interest expense:
Deposits176,974 156,868 53,206 467,472 85,569 
Borrowings78,723 92,675 36,982 250,310 73,498 
Total interest expense 255,697 249,543 90,188 717,782 159,067 
Net interest income before provision for credit losses 214,842 213,878 235,836 656,594 669,894 
Provision for credit losses 33,049 15,517 3,720 68,354 35,546 
Net interest income after provision for credit losses 181,793 198,361 232,116 588,240 634,348 
Non-interest income:
Deposit service charges and fees5,402 5,349 6,064 16,296 17,920 
Gain (loss) on investment securities, net887 993 135 (10,669)(16,125)
Lease financing16,531 12,519 13,180 42,159 39,958 
Other non-interest income4,904 6,626 3,693 21,960 9,070 
Total non-interest income 27,724 25,487 23,072 69,746 50,823 
Non-interest expense:
Employee compensation and benefits68,825 67,414 66,097 207,290 195,646 
Occupancy and equipment 10,890 11,043 11,719 32,735 34,630 
Deposit insurance expense7,790 7,597 4,398 23,294 11,794 
Professional fees 2,696 3,518 3,184 9,132 8,702 
Technology19,193 20,437 19,813 61,356 54,715 
Depreciation of operating lease equipment11,217 11,232 12,646 33,970 37,841 
Other non-interest expense26,479 23,977 20,248 77,311 48,503 
Total non-interest expense 147,090 145,218 138,105 445,088 391,831 
Income before income taxes62,427 78,630 117,083 212,898 293,340 
Provision for income taxes15,446 20,634 29,233 55,039 72,576 
Net income$46,981 $57,996 $87,850 $157,859 $220,764 
Earnings per common share, basic$0.63 $0.78 $1.13 $2.12 $2.73 
Earnings per common share, diluted$0.63 $0.78 $1.12 $2.11 $2.71 

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BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Three Months Ended September 30,
Three Months Ended June 30,
Three Months Ended September 30,
202320232022
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans$24,417,433 $340,357 5.54 %$24,680,919 $329,494 5.35 %$24,053,742 $248,168 4.11 %
Investment securities (3)
9,034,116 123,794 5.48 %9,369,019 121,520 5.19 %9,981,486 77,840 3.12 %
Other interest earning assets785,146 10,668 5.39 %1,323,025 16,664 5.05 %596,879 4,031 2.68 %
Total interest earning assets34,236,695 474,819 5.52 %35,372,963 467,678 5.30 %34,632,107 330,039 3.80 %
Allowance for credit losses(173,407)(162,463)(133,828)
Non-interest earning assets1,747,310 1,744,693 1,703,371 
Total assets$35,810,598 $36,955,193 $36,201,650 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$3,038,870 $25,491 3.33 %$2,772,839 $18,417 2.66 %$2,306,906 $4,104 0.71 %
Savings and money market deposits10,205,765 97,956 3.81 %10,285,494 88,892 3.47 %13,001,566 39,838 1.22 %
Time deposits5,420,522 53,527 3.92 %5,494,631 49,559 3.62 %3,255,869 9,264 1.13 %
Total interest bearing deposits18,665,157 176,974 3.76 %18,552,964 156,868 3.39 %18,564,341 53,206 1.14 %
Federal funds purchased— — — %— — — %153,905 833 2.12 %
FHLB advances6,040,870 69,525 4.57 %7,288,187 83,429 4.59 %4,739,457 26,890 2.25 %
Notes and other borrowings715,307 9,198 5.14 %719,368 9,246 5.14 %721,164 9,259 5.14 %
Total interest bearing liabilities25,421,334 255,697 3.99 %26,560,519 249,543 3.77 %24,178,867 90,188 1.48 %
Non-interest bearing demand deposits6,937,537 7,067,053 8,749,794 
Other non-interest bearing liabilities868,178 798,279 697,440 
Total liabilities33,227,049 34,425,851 33,626,101 
Stockholders' equity2,583,549 2,529,342 2,575,549 
Total liabilities and stockholders' equity$35,810,598 $36,955,193 $36,201,650 
Net interest income$219,122 $218,135 $239,851 
Interest rate spread1.53 %1.53 %2.32 %
Net interest margin2.56 %2.47 %2.76 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    At fair value except for securities held to maturity















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

Nine Months Ended September 30,
 20232022
 Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans$24,606,425 $981,976 5.33 %$23,706,606 $655,114 3.69 %
Investment securities (3)
9,356,211 364,980 5.20 %10,180,351 177,047 2.32 %
Other interest earning assets1,048,313 40,195 5.13 %663,189 8,364 1.69 %
Total interest earning assets35,010,949 1,387,151 5.29 %34,550,146 840,525 3.25 %
Allowance for credit losses(162,395)(130,258)
Non-interest earning assets1,761,500 1,682,618 
Total assets$36,610,054 $36,102,506 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$2,728,287 $54,781 2.68 %$2,658,558 $7,215 0.36 %
Savings and money market deposits10,844,838 278,243 3.43 %13,150,357 62,704 0.64 %
Time deposits5,150,486 134,448 3.49 %3,129,247 15,650 0.67 %
Total interest bearing deposits18,723,611 467,472 3.34 %18,938,162 85,569 0.60 %
Federal funds purchased47,334 1,611 4.54 %152,028 1,046 0.92 %
FHLB advances6,596,465 220,993 4.48 %3,796,484 44,680 1.57 %
Notes and other borrowings718,507 27,706 5.14 %721,283 27,772 5.13 %
Total interest bearing liabilities26,085,917 717,782 3.68 %23,607,957 159,067 0.90 %
Non-interest bearing demand deposits7,152,362 9,071,135 
Other non-interest bearing liabilities829,464 650,936 
Total liabilities34,067,743 33,330,028 
Stockholders' equity2,542,311 2,772,478 
Total liabilities and stockholders' equity$36,610,054 $36,102,506 
Net interest income$669,369 $681,458 
Interest rate spread1.61 %2.35 %
Net interest margin2.55 %2.63 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    At fair value except for securities held to maturity

















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BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
c2023202220232022
Basic earnings per common share: 
Numerator:
Net income$46,981 $87,850 $157,859 $220,764 
Distributed and undistributed earnings allocated to participating securities
(700)(1,343)(2,378)(3,258)
Income allocated to common stockholders for basic earnings per common share$46,281 $86,507 $155,481 $217,506 
Denominator:
Weighted average common shares outstanding74,416,698 77,912,320 74,530,871 81,039,561 
Less average unvested stock awards(1,165,105)(1,221,971)(1,180,570)(1,230,396)
Weighted average shares for basic earnings per common share73,251,593 76,690,349 73,350,301 79,809,165 
Basic earnings per common share$0.63 $1.13 $2.12 $2.73 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share$46,281 $86,507 $155,481 $217,506 
Adjustment for earnings reallocated from participating securities
3 6 8 9 
Income used in calculating diluted earnings per common share$46,284 $86,513 $155,489 $217,515 
Denominator:
Weighted average shares for basic earnings per common share73,251,593 76,690,349 73,350,301 79,809,165 
Dilutive effect of certain share-based awards537,230 433,472 388,372 308,608 
Weighted average shares for diluted earnings per common share
73,788,823 77,123,821 73,738,673 80,117,773 
Diluted earnings per common share$0.63 $1.12 $2.11 $2.71 

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BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 At or for the Three Months EndedNine Months Ended September 30,
 September 30, 2023June 30, 2023September 30, 202220232022
Financial ratios (4)
    
Return on average assets0.52 %0.63 %0.96 %0.58 %0.82 %
Return on average stockholders’ equity7.2 %9.2 %13.5 %8.3 %10.6 %
Net interest margin (3)
2.56 %2.47 %2.76 %2.55 %2.63 %
Loans to deposits93.3 %95.3 %88.7 %
Tangible book value per common share$32.88 $32.90 $30.97 
 September 30, 2023June 30, 2023December 31, 2022
Asset quality ratios  
Non-performing loans to total loans (1)(5)
0.56 %0.48 %0.42 %
Non-performing assets to total assets (2)(5)
0.40 %0.34 %0.29 %
Allowance for credit losses to total loans0.80 %0.68 %0.59 %
Allowance for credit losses to non-performing loans (1)(5)
143.22 %140.52 %140.88 %
Net charge-offs to average loans (4)
0.07 %0.09 %0.22 %
(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 as applicable
(5)    Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $37.8 million or 0.16% of total loans and 0.11% of total assets at September 30, 2023, $35.9 million or 0.15% of total loans and 0.10% of total assets at June 30, 2023 and $40.3 million or 0.16% of total loans and 0.11% of total assets at December 31, 2022.

September 30, 2023June 30, 2023December 31, 2022Required to be Considered Well Capitalized
BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.
Capital ratios
Tier 1 leverage7.9 %9.1 %7.6 %8.8 %7.5 %8.4 %5.0 %
Common Equity Tier 1 ("CET1") risk-based capital11.4 %13.2 %11.2 %13.0 %11.0 %12.4 %6.5 %
Total risk-based capital13.4 %13.9 %13.0 %13.6 %12.7 %12.9 %10.0 %
Tangible Common Equity/Tangible Assets6.9 %N/A6.8 %N/A6.4 %N/AN/A
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Non-GAAP Financial Measures
Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data): 
September 30, 2023June 30, 2023September 30, 2022
Total stockholders’ equity$2,524,070 $2,526,310 $2,480,985 
Less: goodwill and other intangible assets77,637 77,637 77,637 
Tangible stockholders’ equity$2,446,433 $2,448,673 $2,403,348 
Common shares issued and outstanding74,413,059 74,429,948 77,599,408 
Book value per common share$33.92 $33.94 $31.97 
Tangible book value per common share$32.88 $32.90 $30.97 
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