News Release

MIAMI LAKES, Fla.--(BUSINESS WIRE)--Jul. 25, 2012-- BankUnited, Inc. (the “Company”) (NYSE:BKU) today announced financial results for the quarter ended June 30, 2012.

For the quarter ended June 30, 2012, the Company reported net income of $48.9 million, or $0.48 per share as compared to $44.0 million or $0.44 per share for the quarter ended June 30, 2011.

For the six months ended June 30, 2012, the Company reported net income of $99.2 million, or $0.96 per share. These earnings produced an annualized return on average stockholders’ equity of 12.25% and an annualized return on average assets of 1.66%. The Company reported a net loss of $(23.7) million, or $(0.25) per share for the six months ended June 30, 2011. The results for the first six months of 2011 included a one-time charge of $110.4 million, recorded in conjunction with the Company’s initial public offering (IPO) in February 2011, which was not deductible for income tax purposes.

John Kanas, Chairman, President and Chief Executive Officer, said: “We are obviously pleased with this quarter’s financial results. While our performance continues to reflect a significant increase in market share, we are also witnessing the positive impact on our business emanating from an overall improvement in the South Florida economy.”

Financial Highlights

• For the quarter ended June 30, 2012, new loans grew $501.2 million to $2.9 billion. For the second quarter and first six months of 2012, growth in new loans outpaced the resolution of covered loans, resulting in net growth in the loan portfolio. Total loans, net of discount and deferred fees and costs, grew $369.4 million for the quarter to $5.1 billion.
• At June 30, 2012, total demand deposits exceeded 20% of total deposits.

• The cost of deposits continues to trend downward. The cost of deposits was 0.84% for the second quarter of 2012 as compared to 0.90% for the first quarter of 2012 and 1.12% for the second quarter of 2011.
• Book value and tangible book value per common share grew to $17.42 and $16.68, respectively, at June 30, 2012.

Capital Ratios

BankUnited, Inc. continues to maintain a robust capital position. The Company’s capital ratios at June 30, 2012 were as follows:

Tier 1 leverage		12.8	%
Tier 1 risk-based capital		34.8	%
Total risk-based capital		36.2	%

The Company and its banking subsidiaries continue to exceed all regulatory guidelines required to be considered well capitalized.

Loans

Loans, net of discount and deferred fees and costs, increased to $5.1 billion at June 30, 2012 from $4.1 billion at December 31, 2011. Including $306.0 million in loans acquired from Herald National Bank, new loans increased by $1.2 billion to $2.9 billion at June 30, 2012 from $1.7 billion at December 31, 2011. Covered loans declined to $2.2 billion at June 30, 2012 from $2.4 billion at December 31, 2011.

In the second quarter of 2012, new commercial loans (including commercial loans, commercial real estate loans, and leases) grew $373.1 million to $2.2 billion, primarily reflecting the Company’s expansion of market share in Florida.

For the quarter ended June 30, 2012, the Company’s portfolio of new residential loans grew $123.9 million to $713.9 million, primarily reflecting the Company’s purchase of residential loans outside of Florida to help diversify credit risk within the residential portfolio.

A comparison of portfolio composition at June 30, 2012 and December 31, 2011 follows:

		New Loans						Total Loans
		June 30,			December 31,			June 30,			December 31,
		2012			2011			2012			2011
Single family residential and home equity		24.8	%		27.0	%		50.5	%		60.2	%
Commercial real estate		30.7	%		26.2	%		23.5	%		19.4	%
Commercial		44.1	%		46.6	%		25.7	%		20.2	%
Consumer		0.4	%		0.2	%		0.3	%		0.2	%
		100.0	%		100.0	%		100.0	%		100.0	%

Asset Quality

The Company’s asset quality remained strong, with credit risk limited by its Loss Sharing Agreements with the FDIC. At June 30, 2012, covered loans represented 43% of the total loan portfolio, as compared to 59% at December 31, 2011.

The ratio of non-performing loans to total loans was 0.57% at June 30, 2012 as compared to 0.70% at December 31, 2011 and 0.89% at June 30, 2011. At June 30, 2012, non-performing assets totaled $122.6 million, including $93.7 million of other real estate owned (“OREO”) as compared to $152.6 million, including $123.7 million of OREO, at December 31, 2011, and $175.6 million, including $141.7 million of OREO, at June 30, 2011. All OREO at June 30, 2012 is covered by the Company’s Loss Sharing Agreements.

For the quarters ended June 30, 2012 and 2011, the Company recorded a provision for (recovery of) loan losses of $2.7 million and $(2.9) million, respectively. Of these amounts $(1.5) million and $(6.4) million, respectively, related to covered loans and $4.2 million and $3.6 million, respectively, related to new loans. The increase in the provision for new loans reflected growth in the Company’s new loan originations.

For the six months ended June 30, 2012 and 2011, the Company recorded provisions for loan losses of $11.5 million and $8.6 million respectively. Of these amounts, $0.1 million and $3.6 million related to covered loans and $11.4 million and $5.0 million, respectively, related to new loans.

The provisions (recoveries) related to covered loans were significantly mitigated by increases (decreases) in non-interest income recorded in “Net gain (loss) on indemnification asset.”

The following table summarizes the activity in the allowance for loan losses for the three and six months ended June 30, 2012 and 2011 (in thousands):

		Three Months Ended June 30, 2012																Three Months Ended June 30, 2011
		ACI Loans				Non-ACI Loans				New Loans				Total				ACI Loans				Non-ACI Loans				New Loans				Total
Balance at beginning of period		$	14,591			$	10,915			$	30,968			$	56,474			$	36,709			$	17,302			$	7,546			$	61,557
Provision			(1,771	)			287				4,209				2,725				(6,563	)			120				3,551				(2,892	)
Charge-offs			(1,735	)			(1,434	)			(533	)			(3,702	)			(1,382	)			(1,313	)			(565	)			(3,260	)
Recoveries			-				110				28				138				1,212				14				8				1,234
Balance at end of period		$	11,085			$	9,878			$	34,672			$	55,635			$	29,976			$	16,123			$	10,540			$	56,639

			Six Months Ended June 30, 2012																Six Months Ended June 30, 2011
			ACI Loans				Non-ACI Loans				New Loans				Total				ACI Loans				Non-ACI Loans				New Loans				Total
Balance at beginning of period			$	16,332			$	7,742			$	24,328			$	48,402			$	39,925			$	12,284			$	6,151			$	58,360
Provision				(2,782	)			2,898				11,376				11,492				(2,719	)			6,293				4,990				8,564
Charge-offs				(2,465	)			(2,040	)			(1,116	)			(5,621	)			(8,442	)			(2,468	)			(615	)			(11,525	)
Recoveries				-				1,278				84				1,362				1,212				14				14				1,240
Balance at end of period			$	11,085			$	9,878			$	34,672			$	55,635			$	29,976			$	16,123			$	10,540			$	56,639

Investment Securities

Investment securities grew to $4.8 billion at June 30, 2012 from $4.2 billion at December 31, 2011. The average yield on investment securities was 2.95% for the six months ended June 30, 2012 as compared to 3.66% for the six months ended June 30, 2011. The decline in yield reflects the impact of purchases of securities at lower prevailing market rates of interest. The effective duration of the Company’s investment portfolio was approximately 1.8 years at June 30, 2012.

Deposits

At June 30, 2012, deposits totaled $8.2 billion as compared to $7.4 billion at December 31, 2011. Demand deposits (including non-interest bearing and interest bearing deposits) grew $429.1 million to $1.7 billion at June 30, 2012 from $1.2 billion at December 31, 2011. This was driven principally by growth in commercial and small business accounts. The average cost of deposits was 0.84% for the quarter ended June 30, 2012 as compared to 1.12% for the quarter ended June 30, 2011 and 0.87% for the six months ended June 30, 2012 as compared to 1.15% for the six months ended June 30, 2011. The decrease in the average cost of deposits was primarily attributable to the continued growth in lower cost deposit products and a decline in market rates of interest.

Net Interest Income

Net interest income for the quarter ended June 30, 2012 grew to $145.8 million, from $117.3 million for the quarter ended June 30, 2011. Net interest income for the six months ended June 30, 2012 grew to $283.6 million from $229.6 million for the six months ended June 30, 2011.

The Company’s net interest margin for the quarter ended June 30, 2012 was 5.82% as compared to 5.99% for the quarter ended June 30, 2011. Net interest margin for the six months ended June 30, 2012 was 5.90% as compared to 5.87% for the six months ended June 30, 2011.

The Company’s net interest margin for the quarters and six months ended June 30, 2012 and 2011 was impacted by reclassifications from non-accretable difference to accretable yield on ACI loans (defined as covered loans acquired with evidence of deterioration in credit quality). Non-accretable difference at acquisition represented the difference between the total contractual payments due and the cash flows expected to be received on these loans. The accretable yield on ACI loans represents the amount by which undiscounted expected future cash flows exceed the carrying value of the loans. As the Company’s expected cash flows from ACI loans increased since the FSB Acquisition, the Company reclassified amounts from non-accretable difference to accretable yield.

Changes in accretable yield on ACI loans for the six months ended June 30, 2012 and the year ended December 31, 2011 were as follows (in thousands):

	Balance, December 31, 2010			$	1,833,974
		Reclassifications from non-accretable difference			135,933
		Accretion			(446,292	)
	Balance, December 31, 2011				1,523,615
		Reclassifications from non-accretable difference			50,032
		Accretion			(219,869	)
	Balance, June 30, 2012			$	1,353,778

Non-Interest Income

Non-interest income for the quarter ended June 30, 2012 was $21.7 million, as compared to $52.9 million for the quarter ended June 30, 2011. For the six months ended June 30, 2012, non-interest income was $58.1 million as compared to $117.1 million for the six months ended June 30, 2011.

Non-interest income for the quarter and six months ended June 30, 2012 was impacted by lower accretion of discount on the FDIC indemnification asset of $4.3 million and $11.1 million, respectively, as compared to $14.9 million and $34.4 million respectively for the quarter and six months ended June 30, 2011. As the expected cash flows from ACI loans have increased as discussed above, the Company expects reduced cash flows from the FDIC indemnification asset, resulting in lowered accretion.

Net gain (loss) on indemnification asset was $(12.5) million and $(12.4) million, respectively, for the quarter and six months ended June 30, 2012, as compared to $11.3 million and $37.6 million, respectively, for the quarter and six months ended June 30, 2011. Factors impacting this change included increased income from resolution of covered assets, net, reduced OREO impairment and more favorable gains (losses) on the sale of OREO as discussed below, as well as the variance in the provision for losses on covered loans as discussed above.

Non-Interest Expense

Non-interest expense totaled $83.0 million for the quarter ended June 30, 2012 as compared to $95.9 million for the quarter ended June 30, 2011. For the six months ended June 30, 2012 non-interest expense totaled $167.1 million as compared to $300.2 million for the six months ended June 30, 2011. Non-interest expense for the six months ended June 30, 2011 included a one-time compensation expense of $110.4 million recorded in conjunction with the Company’s IPO.

Employee compensation and benefits (excluding the one-time charge of $110.4 million discussed above) and occupancy and equipment expense increased for the quarter and six months ended June 30, 2012 as compared to the quarter and six months ended June 30, 2011, reflecting the Company’s continued expansion and the opening and refurbishment of branches. For the quarter and six months ended June 30, 2012, the aggregate of OREO related expense, gain (loss) on sale of OREO, foreclosure expense, and impairment of OREO totaled $6.6 million and $16.6 million respectively, as compared to $29.1 million and $59.7 million, respectively, for the quarter and six months ended June 30, 2011. The sharply lower level of expense for the quarter and six months ended June 30, 2012 reflected lower levels of OREO and foreclosure activity as well as improving real estate market trends as compared to the prior year.

Earnings Conference Call and Presentation

A conference call to discuss the second quarter results will be held at 9:00 a.m. EDT on Wednesday July 25th with Chairman, President, and Chief Executive Officer, John A. Kanas and Chief Financial Officer, Douglas J. Pauls.

The earnings release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. The call may be accessed via a live Internet webcast at www.bankunited.com or through a dial in telephone number at (888) 679-8018 (domestic) or, (617) 213-4845 (international). The name of the call is BankUnited, and the pass code for the call is 64151841. A replay of the call will be available from 11:00 a.m. EDT on July 25th through 11:59 p.m. EDT on August 1 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international). The pass code for the replay is 73844128. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.

About BankUnited and the Acquisition

BankUnited, Inc. is a bank holding company with three wholly-owned subsidiaries: BankUnited, N.A., which is one of the largest independent depository institutions headquartered in Florida by assets, BankUnited Investment Services, Inc., a Florida insurance agency which provides comprehensive wealth management products and financial planning services, and Herald National Bank, a commercial bank servicing the New York City market. BankUnited, N.A., is a national bank headquartered in Miami Lakes, Florida, with $11.8 billion of assets, more than 1,395 professionals and 95 branches in 15 counties at June 30, 2012.

The Company was organized by a management team led by its Chairman, President and Chief Executive Officer, John A. Kanas, on April 28, 2009. On May 21, 2009, BankUnited acquired substantially all of the assets and assumed all of the non-brokered deposits and substantially all other liabilities of BankUnited, FSB from the FDIC, in a transaction referred to as the “FSB Acquisition”. Concurrently with the FSB Acquisition, BankUnited entered into two loss sharing agreements, or the “Loss Sharing Agreements”, which cover certain legacy assets, including the entire legacy loan portfolio and OREO, and certain purchased investment securities. Assets covered by the Loss Sharing Agreements are referred to as “covered assets” (or, in certain cases, “covered loans”). The Loss Sharing Agreements do not apply to subsequently acquired, purchased or originated assets. Pursuant to the terms of the Loss Sharing Agreements, the covered assets are subject to a stated loss threshold whereby the FDIC will reimburse BankUnited for 80% of losses, including certain interest and expenses, up to the $4.0 billion stated threshold and 95% of losses in excess of the $4.0 billion stated threshold. The Company’s current estimate of cumulative losses on the covered assets is approximately $4.7 billion. The Company has received $2.1 billion from the FDIC in reimbursements under the Loss Sharing Agreements for claims filed for incurred losses as of June 30, 2012.

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” 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 relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. 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 Annual Report on Form 10-K for the year ended December 31, 2011 available at the SEC’s website (www.sec.gov).

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share data)
				June 30,			December 31,
				2012			2011
ASSETS
Cash and due from banks:
	Non-interest bearing			$	41,691		$	39,894
	Interest bearing				22,038			13,160
Interest bearing deposits at Federal Reserve Bank					97,830			247,488
Federal funds sold					2,585			3,200
	Cash and cash equivalents				164,144			303,742
Investment securities available for sale, at fair value
	(including covered securities of $227,028 and $232,194)				4,758,509			4,181,977
Non-marketable equity securities					154,376			147,055
Loans held for sale					2,970			3,952
Loans (including covered loans of $2,182,133 and $2,422,811)					5,078,698			4,137,058
	Allowance for loan and lease losses				(55,635)			(48,402)
		Loans, net			5,023,063			4,088,656
FDIC indemnification asset					1,711,526			2,049,151
Bank owned life insurance					205,842			204,077
Other real estate owned, covered by loss sharing agreements					93,724			123,737
Deferred tax asset, net					88,187			19,485
Goodwill and other intangible assets					70,142			68,667
Other assets					157,478			131,539
		Total assets		$	12,429,961		$	11,322,038
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
	Demand deposits:
		Non-interest bearing		$	1,134,689		$	770,846
		Interest bearing			518,883			453,666
	Savings and money market				3,948,350			3,553,018
	Time				2,624,692			2,587,184
		Total deposits			8,226,614			7,364,714
	Securities sold under repurchase agreements and short-term borrowings				42,581			206
	Federal Home Loan Bank advances				2,226,978			2,236,131
	Income taxes payable				82,061			53,171
	Advance payments by borrowers for taxes and insurance				36,151			21,838
	Other liabilities				123,325			110,698
		Total liabilities			10,737,710			9,786,758
Commitments and contingencies
Stockholders' equity:
	Common Stock, par value $0.01 per share 400,000,000 authorized;
		94,024,521 and 97,700,829 shares issued and outstanding			940			977
	Preferred stock, 100,000,000 shares authorized
		5,415,794 shares of Series A $0.01 par value issued and outstanding at June 30, 2012			54			-
	Paid-in capital				1,298,201			1,240,068
	Retained earnings				340,470			276,216
	Accumulated other comprehensive income				52,586			18,019
		Total stockholders' equity			1,692,251			1,535,280
		Total liabilities and stockholders' equity		$	12,429,961		$	11,322,038

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)
				Three Months Ended June 30,								Six Months Ended June 30,
				2012				2011				2012				2011
Interest income:
	Loans			$	142,621			$	122,243			$	278,918			$	236,894
	Investment securities available for sale				34,059				29,237				67,098				61,786
	Other				1,235				617				2,189				1,623
		Total interest income			177,915				152,097				348,205				300,303
Interest expense:
	Deposits				17,047				19,024				34,007				39,330
	Borrowings				15,071				15,751				30,592				31,324
		Total interest expense			32,118				34,775				64,599				70,654
		Net interest income before provision for loan losses			145,797				117,322				283,606				229,649
	Provision for (recovery of) loan losses (including $(1,484)
		$(6,443), $116 and $3,574 for covered loans)			2,725				(2,892	)			11,492				8,564
		Net interest income after provision for loan losses			143,072				120,214				272,114				221,085
Non-interest income:
	Accretion of discount on FDIC indemnification asset				4,294				14,873				11,081				34,443
	Income from resolution of covered assets, net				14,803				3,076				22,085				2,366
	Net gain (loss) on indemnification asset				(12,537	)			11,312				(12,403	)			37,634
	FDIC reimbursement of costs of resolution of covered assets				3,333				8,241				9,849				18,741
	Service charges and fees				3,229				2,648				6,345				5,332
	Gain on sale of investment securities available for sale				880				100				896				103
	Mortgage insurance income				2,649				6,784				6,339				8,085
	Investment services income				1,091				2,110				2,223				4,515
	Other non-interest income				3,924				3,714				11,649				5,901
		Total non-interest income			21,666				52,858				58,064				117,120
Non-interest expense:
	Employee compensation and benefits				43,951				41,364				90,576				190,670
	Occupancy and equipment				13,229				8,791				25,051				16,396
	Impairment of other real estate owned				3,048				8,187				6,595				17,786
	Foreclosure expense				3,892				6,057				6,611				10,527
	(Gain) loss on sale of other real estate owned				(1,490	)			12,264				(89	)			24,474
	Other real estate owned expense				1,161				2,589				3,437				6,932
	Deposit insurance expense				1,946				2,329				3,096				6,518
	Professional fees				3,953				3,507				7,602				6,736
	Telecommunications and data processing				3,121				3,418				6,351				6,866
	Other non-interest expense				10,220				7,383				17,919				13,323
		Total non-interest expense			83,031				95,889				167,149				300,228
Income before income taxes					81,707				77,183				163,029				37,977
Provision for income taxes					32,778				33,188				63,828				61,642
		Net income (loss)			48,929				43,995				99,201				(23,665	)
Preferred stock dividends					921				-				1,841				-
		Net income (loss) available to common stockholders		$	48,008			$	43,995			$	97,360			$	(23,665	)
Earnings (loss) per common share, basic and diluted				$	0.48			$	0.44			$	0.96			$	(0.25	)
Cash dividends declared per common share				$	0.17			$	0.14			$	0.34			$	0.28

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
			Three Months Ended June 30,
			2012											2011
			Average							Yield/				Average							Yield/
			Balance				Interest			Rate (1)				Balance				Interest			Rate (1)
Assets:
Interest earning assets:
Investment securities available for sale			$	4,688,632			$	34,059			2.91	%		$	3,541,723			$	29,237		$	3.30	%
Other interest earning assets				522,874				1,235			0.95	%			572,792				617			0.43	%
Loans				4,813,393				142,621			11.87	%			3,722,389				122,243			13.15	%
Total interest earning assets				10,024,899				177,915			7.11	%			7,836,904				152,097			7.77	%
Allowance for loan and lease losses				(57,351	)										(61,168	)
Non-interest earning assets				2,414,312											2,983,739
	Total assets		$	12,381,860										$	10,759,475
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	502,313			$	814			0.65	%		$	372,060			$	624		$	0.67	%
Savings and money market deposits				3,958,633				6,491			0.66	%			3,248,353				7,023			0.87	%
Time deposits				2,624,250				9,742			1.49	%			2,546,673				11,377			1.79	%
	Total interest bearing deposits			7,085,196				17,047			0.97	%			6,167,086				19,024			1.24	%
Borrowings:
FHLB advances				2,229,410				15,036			2.71	%			2,248,514				15,747			2.81	%
Short-term borrowings				35,244				35			0.40	%			3,785				4			0.42	%
Total interest bearing liabilities				9,349,850				32,118			1.38	%			8,419,385				34,775			1.66	%
Non-interest bearing demand deposits				1,055,998											619,052
Other non-interest bearing liabilities				302,923											270,951
	Total liabilities			10,708,771											9,309,388
Stockholders' equity				1,673,089											1,450,087
	Total liabilities and stockholders' equity		$	12,381,860										$	10,759,475
Net interest income							$	145,797										$	117,322
Interest rate spread											5.73	%										6.11	%
Net interest margin											5.82	%										5.99	%
(1) Annualized

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
			Six Months Ended June 30,
			2012									2011
			Average						Yield/			Average						Yield/
			Balance			Interest			Rate (1)			Balance			Interest			Rate (1)
Assets:
Interest earning assets:
Investment securities available for sale			$	4,543,664		$	67,098			2.95%		$	3,372,406		$	61,786			3.66%
Other interest earning assets				523,792			2,189			0.84%			682,059			1,623			0.48%
Loans				4,544,554			278,918			12.30%			3,762,366			236,894			12.62%
	Total interest earning assets			9,612,010			348,205			7.26%			7,816,831			300,303			7.70%
Allowance for loan and lease losses				(53,604)									(59,813)
Non-interest earning assets				2,427,300									3,078,889
	Total assets		$	11,985,706								$	10,835,907
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	488,606		$	1,581			0.65%		$	361,002		$	1,177			0.66%
Savings and money market deposits				3,809,788			12,924			0.68%			3,250,407			14,249			0.88%
Time deposits				2,601,538			19,502			1.51%			2,719,296			23,904			1.77%
	Total interest bearing deposits			6,899,932			34,007			0.99%			6,330,705			39,330			1.25%
Borrowings:
FHLB advances				2,231,918			30,555			2.75%			2,250,855			31,319			2.81%
Short-term borrowings				18,226			37			0.41%			2,045			5			0.49%
	Total interest bearing liabilities			9,150,076			64,599			1.42%			8,583,605			70,654			1.66%
Non-interest bearing demand deposits				959,564									572,595
Other non-interest bearing liabilities				247,370									274,350
	Total liabilities			10,357,010									9,430,550
Stockholders' equity				1,628,696									1,405,357
	Total liabilities and stockholders' equity		$	11,985,706								$	10,835,907
Net interest income						$	283,606								$	229,649
Interest rate spread										5.84%									6.04%
Net interest margin										5.90%									5.87%
(1) Annualized

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS (LOSS) PER COMMON SHARE
(In thousands except share amounts)
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2012			2011			2012			2011
Basic earnings (loss) per common share:
Numerator:
Net income (loss)		$	48,929		$	43,995		$	99,201		$	(23,665)
Preferred stock dividends			(921)			-			(1,841)			-
Net income (loss) available to common stockholders			48,008			43,995			97,360			(23,665)
Distributed and undistributed earnings allocated to participating securities			(3,687)			(2,216)			(6,968)			-
Income (loss) allocated to common stockholders for basic earnings (loss) per common share		$	44,321		$	41,779		$	90,392		$	(23,665)
Denominator:
Weighted average common shares outstanding			93,994,226			97,243,931			95,190,558			96,432,334
Less average unvested stock awards			(1,168,872)			(1,785,151)			(1,405,036)			(1,547,363)
Weighted average shares for basic earnings (loss) per common share			92,825,354			95,458,780			93,785,522			94,884,971
Basic earnings (loss) per common share		$	0.48		$	0.44		$	0.96		$	(0.25)
Diluted earnings (loss) per common share:
Numerator:
Income (loss) allocated to common stockholders for basic earnings (loss) per common share		$	44,321		$	41,779		$	90,392		$	(23,665)
Adjustment for earnings reallocated from participating securities			2,583			2			10			-
Income (loss) used in calculating diluted earnings (loss) per common share		$	46,904		$	41,781		$	90,402		$	(23,665)
Denominator:
Average shares for basic earnings (loss) per common share			92,825,354			95,458,780			93,785,522			94,884,971
Dilutive effect of stock options and preferred shares			5,626,620			166,601			189,209			-
Weighted average shares for diluted earnings (loss) per common share			98,451,974			95,625,381			93,974,731			94,884,971
Diluted earnings (loss) per common share		$	0.48		$	0.44		$	0.96		$	(0.25)

BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
			Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
Financial ratios			June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
	Return on average assets (4)		1.59%		1.64%		1.66%		(0.44)%
	Return on average stockholders' equity (4)		11.76%		12.17%		12.25%		(3.40)%
	Net interest margin (4)		5.82%		5.99%		5.90%		5.87%
Capital ratios			June 30, 2012		December 31, 2011
	Tier 1 risk-based capital		34.82%		41.62%
	Total risk-based capital		36.19%		42.89%
	Tier 1 leverage		12.83%		13.06%
Asset quality ratios			June 30, 2012		December 31, 2011
	Non-performing loans to total loans (1) (3)		0.57%		0.70%
	Non-performing assets to total assets (2)		0.99%		1.35%
	Allowance for loan losses to total loans (3)		1.10%		1.17%
	Allowance for loan losses to non-performing loans (1)		192.86%		167.59%
	Net charge-offs to average loans (4)		0.19%		0.62%
(1)	We define non-performing loans to include nonaccrual loans, loans, other than ACI loans, that are past due 90 days or more and still accruing and certain loans modified in troubled debt restructurings. Contractually delinquent ACI loans on which interest continues to be accreted are excluded from non-performing loans.
(2)	Non-performing assets include non-performing loans and other real estate owned.
(3)	Total loans is net of unearned discounts, premiums and deferred fees and costs.
(4)	Annualized

Source: BankUnited, Inc.

BankUnited Inc.
Investor Relations:
Douglas J. Pauls, 305-461-6841
dpauls@bankunited.com
or
Media Relations:
Mary Harris: 305-817-8117
mharris@bankunited.com