News Release

MIAMI LAKES, Fla.--(BUSINESS WIRE)--Jul. 24, 2013-- BankUnited, Inc. (the “Company”) (NYSE:BKU) today announced financial results for the second quarter of 2013.

For the quarter ended June 30, 2013, the Company reported net income of $54.0 million, or $0.52 per diluted share, as compared to $48.9 million, or $0.48 per diluted share, for the quarter ended June 30, 2012.

For the six months ended June 30, 2013, the Company reported net income of $102.2 million, or $0.99 per diluted share, generating an annualized return on average stockholders’ equity of 11.15% and an annualized return on average assets of 1.62%. The Company reported net income of $99.2 million, or $0.96 per diluted share, for the six months ended June 30, 2012.

John Kanas, Chairman, President and Chief Executive Officer, said, "The New York franchise is off to a very strong start. Combined with the remarkable recovery in the South Florida market, BankUnited is beginning to hit on all cylinders."

Performance Highlights

• New loans grew by $1.1 billion during the second quarter of 2013. For the six months ended June 30, 2013, new loans increased by $1.4 billion to $5.1 billion, an annualized growth rate of 79%.
• Deposits increased to $9.0 billion at June 30, 2013, with interest and non-interest bearing demand deposits totaling $2.2 billion, or 24% of total deposits.
• The net interest margin, calculated on a tax-equivalent basis, was 6.14% for the quarter ended June 30, 2013.
• We opened two additional banking centers in Manhattan during the second quarter of 2013, which was the first full quarter of operations for our New York franchise, bringing the total number of banking centers to four. One new branch opened in Florida during the quarter ended June 30, 2013.
• The cost of deposits continued to trend downward to 0.64% for the second quarter of 2013 from 0.70% for the immediately preceding quarter.
• Book value and tangible book value per common share were $18.43 and $17.74, respectively, at June 30, 2013.

Capital

BankUnited, Inc.’s capital position remains robust. The Company and its banking subsidiary exceed all regulatory guidelines required to be considered well capitalized. The Company’s regulatory capital ratios at June 30, 2013 were as follows:

Tier 1 leverage				13.7%
Tier 1 risk-based capital				27.9%
Total risk-based capital				28.9%

Loans and Leases

Loans, net of premiums, discounts and deferred fees and costs, increased to $6.8 billion at June 30, 2013 from $5.6 billion at December 31, 2012. New loans grew by $1.4 billion to $5.1 billion at June 30, 2013 from $3.7 billion at December 31, 2012. Covered loans declined to $1.7 billion at June 30, 2013 from $1.9 billion at December 31, 2012.

For the quarter ended June 30, 2013, new commercial loans, including commercial loans, commercial real estate loans and leases, grew $744 million to $3.7 billion, reflecting the first full quarter of lending operations in New York, continued expansion of market share in Florida and growth of the leasing portfolio. New residential loans grew by $264 million to $1.3 billion during the second quarter of 2013, primarily as a result of the continuation of the Company’s residential loan purchase program.

A comparison of portfolio composition at June 30, 2013 and December 31, 2012 follows:

		New Loans				Total Loans
		June 30,		December 31,		June 30,		December 31,
		2013		2012		2013		2012
Single family residential and home equity		26.1%		25.0%		40.8%		45.3%
Commercial real estate		33.4%		31.8%		28.4%		25.6%
Commercial		38.7%		42.3%		29.4%		28.5%
Consumer		1.8%		0.9%		1.4%		0.6%
		100.0%		100.0%		100.0%		100.0%

Asset Quality

Asset quality remained strong. Credit risk continues to be limited, though to a declining extent, by the Loss Sharing Agreements with the FDIC. At June 30, 2013, covered loans represented 24% of the total loan portfolio, as compared to 33% at December 31, 2012.

The ratio of non-performing new loans to total new loans was 0.42% at June 30, 2013 and 0.43% at December 31, 2012. The ratio of total non-performing loans to total loans was 0.54% at June 30, 2013 as compared to 0.62% at December 31, 2012. At June 30, 2013, non-performing assets totaled $87.0 million, including $50.0 million of other real estate owned (“OREO”), as compared to $110.6 million, including $76.0 million of OREO, at December 31, 2012. At June 30, 2013, 75% of total non-performing assets were covered assets.

For the quarters ended June 30, 2013 and 2012, the Company recorded provisions for loan losses of $4.9 million and $2.7 million, respectively. Of these amounts, $(3.0) million and $(1.5) million, respectively, related to recoveries on covered loans, and $7.8 million and $4.2 million, respectively, related to provisions for new loans.

For the six months ended June 30, 2013 and 2012, the Company recorded provisions for loan losses of $16.8 million and $11.5 million, respectively. Of these amounts, $1.8 million and $0.1 million, respectively, related to covered loans, and $15.0 million and $11.4 million, respectively, related to new loans.

The increases in provisions related to new loans resulted from growth in the new loan portfolio and charge-offs, particularly related to one commercial relationship, partially offset by reduced general loss factors.

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

The following tables summarize the activity in the allowance for loan and lease losses for the three and six months ended June 30, 2013 and 2012 (in thousands):

		Three Months Ended June 30, 2013												Three Months Ended June 30, 2012
		ACI Loans			Non-ACI Loans			New Loans			Total			ACI Loans			Non-ACI Loans			New Loans			Total
Balance at beginning of period		$	4,790		$	15,919		$	40,314		$	61,023		$	14,591		$	10,915		$	30,968		$	56,474
	Provision		(195)			(2,756)			7,832			4,881			(1,771)			287			4,209			2,725
	Charge-offs		(291)			(801)			(8,037)			(9,129)			(1,735)			(1,434)			(533)			(3,702)
	Recoveries		-			1,546			110			1,656			-			110			28			138
Balance at end of period		$	4,304		$	13,908		$	40,219		$	58,431		$	11,085		$	9,878		$	34,672		$	55,635

		Six Months Ended June 30, 2013												Six Months Ended June 30, 2012
		ACI Loans			Non-ACI Loans			New Loans			Total			ACI Loans			Non-ACI Loans			New Loans			Total
Balance at beginning of period		$	8,019		$	9,874		$	41,228		$	59,121		$	16,332		$	7,742		$	24,328		$	48,402
	Provision		(1,598)			3,447			14,999			16,848			(2,782)			2,898			11,376			11,492
	Charge-offs		(2,117)			(1,906)			(16,251)			(20,274)			(2,465)			(2,040)			(1,116)			(5,621)
	Recoveries		-			2,493			243			2,736			-			1,278			84			1,362
Balance at end of period		$	4,304		$	13,908		$	40,219		$	58,431		$	11,085		$	9,878		$	34,672		$	55,635

Deposits

At June 30, 2013, deposits totaled $9.0 billion compared to $8.5 billion at December 31, 2012. Demand deposits, including non-interest bearing and interest bearing deposits, comprised 24% of total deposits at June 30, 2013 and 22% of total deposits at December 31, 2012. The average cost of deposits was 0.64% for the quarter ended June 30, 2013 as compared to 0.84% for the quarter ended June 30, 2012 and 0.67% for the six months ended June 30, 2013 as compared to 0.87% for the six months ended June 30, 2012. The decrease in the average cost of deposits was attributable to both the growth in non-interest bearing deposits as a percentage of average total deposits and a decline in market rates of interest. Excluding the impact of hedge accounting and accretion of fair value adjustments, the average cost of deposits was 0.59% and 0.61%, respectively, for the three and six months ended June 30, 2013.

Net interest income

Net interest income for the quarter ended June 30, 2013 grew to $164.1 million from $145.8 million for the quarter ended June 30, 2012. Net interest income for the six months ended June 30, 2013 was $317.8 million as compared to $283.6 million for the six months ended June 30, 2012.

The Company’s net interest margin, calculated on a tax-equivalent basis, was 6.14% for the quarter ended June 30, 2013 as compared to 5.92% for the quarter ended June 30, 2012. Net interest margin, calculated on a tax-equivalent basis, for the six months ended June 30, 2013 was 6.04% as compared to 6.00% for the six months ended June 30, 2012. Significant factors impacting the trend in net interest margin for the three and six months ended June 30, 2013 included:

• The tax-equivalent yield on loans declined for the quarter and six months ended June 30, 2013 compared to the corresponding periods in 2012, primarily because new loans, originated at yields lower than those on the covered loan portfolio, comprised a greater percentage of total loans.
• The yield on new loans decreased to 3.87% and 3.94%, respectively, for the quarter and six months ended June 30, 2013 compared to 4.49% and 4.55% for the quarter and six months ended June 30, 2012, primarily reflecting lower market interest rates.
• The yield on covered loans increased to 26.86% and 25.47%, respectively, for the quarter and six months ended June 30, 2013 from 20.50% and 19.99% for the quarter and six months ended June 30, 2012. The increase in the yield on covered loans resulted from (i) reclassifications from non-accretable difference to accretable yield, (ii) the inclusion in interest income for the quarter and six months ended June 30, 2013 of proceeds of $15.5 million and $25.8 million, respectively, from the sale of ACI residential loans from a pool with a carrying value of zero and (iii) an increase in the favorable impact of resolutions of covered commercial loans.
• The tax-equivalent yield on investment securities declined for the quarter and six months ended June 30, 2013 from the corresponding periods in 2012, reflecting the impact of lower prevailing market rates of interest and changes in portfolio composition.
• The average rate on interest-bearing liabilities declined for the quarter and six months ended June 30, 2013 from the corresponding periods in 2012, primarily due to declining market interest rates.

The Company’s net interest margin has been impacted by reclassifications from non-accretable difference to accretable yield on ACI loans. 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 represented the amount by which undiscounted expected future cash flows exceeded the carrying value of the loans. As the Company’s expected cash flows from ACI loans have increased since the FSB Acquisition (as defined below), the Company has reclassified amounts from non-accretable difference to accretable yield.

Changes in accretable yield on ACI loans for the six months ended June 30, 2013 and the year ended December 31, 2012 were as follows (in thousands):

	Balance, December 31, 2011			$	1,523,615
		Reclassification from non-accretable difference			206,934
		Accretion			(444,483)
	Balance, December 31, 2012				1,286,066
		Reclassification from non-accretable difference			163,039
		Accretion			(211,219)
	Balance, June 30, 2013			$	1,237,886

Non-interest income

Non-interest income totaled $6.1 million and $23.9 million for the quarter and six months ended June 30, 2013 as compared to $21.7 million and $58.1 million for the quarter and six months ended June 30, 2012.

As anticipated, in 2013, the Company began amortizing the FDIC indemnification asset. In prior periods, we recorded accretion of discount on the FDIC indemnification asset. Non-interest income included amortization of the FDIC indemnification asset of $(7.2) million and $(9.4) million, respectively, for the quarter and six months ended June 30, 2013 compared to accretion of $4.3 million and $11.1 million, respectively, for the quarter and six months ended June 30, 2012. As the expected cash flows from ACI loans have increased as discussed above, expected cash flows from the FDIC indemnification asset have decreased.

Income from resolution of covered assets, net was $20.6 million and $39.8 million, respectively, for the quarter and six months ended June 30, 2013 compared to $14.8 million and $22.1 million for the quarter and six months ended June 30, 2012. This increase in income resulted mainly from higher income from commercial recoveries and lower losses from residential foreclosure resolutions.

Loss on the sale of covered loans was $4.3 million and $5.1 million for the quarter and six months ended June 30, 2013. No covered loans were sold during the quarter and six months ended June 30, 2012.

Net loss on indemnification asset was $(17.7) million and $(29.4) million, respectively, for the quarter and six months ended June 30, 2013, compared to $(12.5) million and $(12.4) million for the quarter and six months ended June 30, 2012. Significant factors impacting the changes from 2012 to 2013 included increased income from resolution of covered assets, net, the loss on sale of covered loans, reduced OREO impairment and more favorable results from the sale of OREO as discussed further below.

Declines in FDIC reimbursement of costs of resolution of covered assets and mortgage insurance income reflect the lower volume of covered loan resolution activity.

Gains on investment securities available for sale for the quarter ended June 30, 2013 related primarily to sales of securities to fund loan originations. Securities gains for the six months ended June 30, 2013 also included gains from the sale of securities in conjunction with the merger of Herald National Bank (“Herald”) into BankUnited.

Other non-interest income was $9.7 million for the six months ended June 30, 2013 compared to $13.4 million for the six months ended June 30, 2012. The most significant factor impacting the decrease for the six months ended June 30, 2013 was $5.3 million of bargain purchase gain on the acquisition of Herald included in other non-interest income for the six months ended June 30, 2012.

Non-interest expense

Non-interest expense totaled $78.3 million and $158.9 million, respectively, for the quarter and six months ended June 30, 2013 as compared to $83.0 million and $167.1 million for the quarter and six months ended June 30, 2012.

Employee compensation and benefits for the three and six months ended June 30, 2013 as compared to the three and six months ended June 30, 2012 reflected decreases of $3.4 million and $9.8 million, respectively, in equity-based compensation resulting primarily from the vesting in 2012 of instruments issued in conjunction with the Company’s initial public offering of common stock in 2011. These decreases were largely offset by increased compensation costs related to the Company’s growth and expansion. Occupancy and equipment expense increased to $15.4 million and $30.4 million, respectively, for the quarter and six months ended June 30, 2013 from $13.2 million and $25.1 million for the quarter and six months ended June 30, 2012 due primarily to the expansion and refurbishment of our branch network in both New York and Florida as well as technology enhancements.

For the quarter and six months ended June 30, 2013, the aggregate of foreclosure and OREO expense was $3.3 million and $4.6 million, respectively, as compared to $5.1 million and $10.0 million for the quarter and six months ended June 30, 2012. For the quarter and six months ended June 30, 2013, the net amount of (gain) loss on sale of OREO and impairment of OREO was $(5.7) million and $(5.4) million, respectively, as compared to $1.6 million and $6.5 million for the quarter and six months ended June 30, 2012. These changes continue the trend from prior periods, reflective of lower levels of OREO and foreclosure activity and an improving real estate market.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Wednesday, July 24, 2013 with Chairman, President and Chief Executive Officer, John A. Kanas, and Chief Financial Officer, Leslie N. Lunak.

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) 713-4211 (domestic) or (617) 213-4864 (international). The name of the call is BankUnited, and the confirmation number for the call is 51063862. Participants may pre-register for the call on the Investor Relations page on www.bankunited.com. A replay of the call will be available from 11:00 a.m. ET on July 24 through 11:59 p.m. ET on July 31 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international). The pass code for the replay is 92667953. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.

About BankUnited, Inc. and the FSB Acquisition

BankUnited, Inc. is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with $13.1 billion of assets, 98 banking centers in 15 Florida counties and 4 banking centers in the New York metropolitan area at June 30, 2013.

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 covered 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 purchased or originated loans (“new loans”) or other 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 $4.4 billion. The Company has received $2.4 billion from the FDIC in reimbursements under the Loss Sharing Agreements for claims filed for incurred losses as of June 30, 2013.

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 Company’s Annual Report on Form 10-K for the year ended December 31, 2012 available at the SEC’s website (www.sec.gov).

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data)
				June 30,			December 31,
				2013			2012
ASSETS
Cash and due from banks:
	Non-interest bearing			$	47,160		$	61,088
	Interest bearing				16,643			21,507
Interest bearing deposits at Federal Reserve Bank					147,237			408,827
Federal funds sold					2,512			3,931
	Cash and cash equivalents				213,552			495,353
Investment securities available for sale, at fair value
	(including covered securities of $214,447 and $226,505)				4,146,283			4,172,412
Non-marketable equity securities					142,391			133,060
Loans held for sale					1,539			2,129
Loans (including covered loans of $1,646,946 and $1,864,375)					6,807,325			5,571,739
	Allowance for loan and lease losses				(58,431)			(59,121)
		Loans, net			6,748,894			5,512,618
FDIC indemnification asset					1,345,134			1,457,570
Bank owned life insurance					205,856			207,069
Other real estate owned (including covered OREO of $49,571 and $76,022)					50,041			76,022
Deferred tax asset, net					63,833			62,274
Goodwill and other intangible assets					69,413			69,768
Other assets					246,489			187,678
		Total assets		$	13,233,425		$	12,375,953
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
	Demand deposits:
		Non-interest bearing		$	1,594,003		$	1,312,779
		Interest bearing			573,169			542,561
	Savings and money market				4,176,181			4,042,022
	Time				2,687,562			2,640,711
		Total deposits			9,030,915			8,538,073
	Short-term borrowings				1,644			8,175
	Federal Home Loan Bank advances				2,196,605			1,916,919
	Other liabilities				151,552			106,106
		Total liabilities			11,380,716			10,569,273
Commitments and contingencies
Stockholders' equity:
	Common stock, par value $0.01 per share, 400,000,000 shares authorized;
		100,550,397 and 95,006,729 shares issued and outstanding			1,006			950
	Preferred stock, par value $0.01 per share, 100,000,000 shares authorized;
		5,415,794 shares of Series A issued and outstanding at December 31, 2012			-			54
	Paid-in capital				1,317,449			1,308,315
	Retained earnings				472,190			413,385
	Accumulated other comprehensive income				62,064			83,976
		Total stockholders' equity			1,852,709			1,806,680
		Total liabilities and stockholders' equity		$	13,233,425		$	12,375,953

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
				Three Months Ended June 30,						Six Months Ended June 30,
				2013			2012			2013			2012
Interest income:
	Loans			$	154,760		$	142,621		$	299,851		$	278,918
	Investment securities available for sale				30,196			34,059			60,201			67,098
	Other				1,142			1,235			2,421			2,189
		Total interest income			186,098			177,915			362,473			348,205
Interest expense:
	Deposits				14,158			17,047			29,039			34,007
	Borrowings				7,890			15,071			15,597			30,592
		Total interest expense			22,048			32,118			44,636			64,599
		Net interest income before provision for (recovery of) loan losses			164,050			145,797			317,837			283,606
	Provision for (recovery of) loan losses (including $(2,951),
		$(1,484), $1,849 and $116 for covered loans)			4,881			2,725			16,848			11,492
		Net interest income after provision for (recovery of) loan losses			159,169			143,072			300,989			272,114
Non-interest income:
	(Amortization) accretion of FDIC indemnification asset				(7,150)			4,294			(9,430)			11,081
	Income from resolution of covered assets, net				20,580			14,803			39,770			22,085
	Net loss on indemnification asset				(17,683)			(12,537)			(29,370)			(12,403)
	FDIC reimbursement of costs of resolution of covered assets				2,261			3,333			5,125			9,849
	Service charges and fees				3,379			3,229			6,721			6,345
	Gain (loss) on sale of loans, net (including loss related to covered loans of
		$(4,311) and $(5,082) for the three and six months ended June 30, 2013)			(4,115)			253			(4,701)			509
	Gain on investment securities available for sale, net (including loss related to
		covered securities of $(963) for the three and six months ended June 30, 2013)			3,536			880			5,222			896
	Mortgage insurance income				631			2,649			902			6,339
	Other non-interest income				4,641			4,762			9,684			13,363
		Total non-interest income			6,080			21,666			23,923			58,064
Non-interest expense:
	Employee compensation and benefits				43,027			43,951			86,102			90,576
	Occupancy and equipment				15,381			13,229			30,423			25,051
	Impairment of other real estate owned				419			3,048			1,699			6,595
	Gain on sale of other real estate owned				(6,091)			(1,490)			(7,122)			(89)
	Other real estate owned expense				1,262			1,161			2,130			3,437
	Foreclosure expense				1,994			3,892			2,499			6,611
	Deposit insurance expense				1,724			1,946			3,661			3,096
	Professional fees				6,959			3,953			12,381			7,602
	Telecommunications and data processing				3,484			3,121			6,852			6,351
	Other non-interest expense				10,188			10,220			20,231			17,919
		Total non-interest expense			78,347			83,031			158,856			167,149
Income before income taxes					86,902			81,707			166,056			163,029
Provision for income taxes					32,894			32,778			63,822			63,828
		Net income			54,008			48,929			102,234			99,201
Preferred stock dividends					-			921			-			1,841
		Net income available to common stockholders		$	54,008		$	48,008		$	102,234		$	97,360
Earnings per common share, basic				$	0.52		$	0.48		$	1.00		$	0.96
Earnings per common share, diluted				$	0.52		$	0.48		$	0.99		$	0.96
Cash dividends declared per common share				$	0.21		$	0.17		$	0.42		$	0.34

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
			Three Months Ended June 30,
			2013									2012
			Average						Yield/			Average						Yield/
			Balance			Interest (1)			Rate (2)			Balance			Interest (1)			Rate (2)
Assets:
Interest earning assets:
Loans			$	6,090,890		$	156,338			10.28%		$	4,813,393		$	143,534			11.95%
Investment securities available for sale				4,378,894			30,904			2.82%			4,688,632			35,544			3.03%
Other interest earning assets				370,874			1,142			1.23%			522,874			1,235			0.95%
	Total interest earning assets			10,840,658			188,384			6.96%			10,024,899			180,313			7.21%
Allowance for loan and lease losses				(64,051)									(57,351)
Non-interest earning assets				2,057,070									2,414,312
	Total assets		$	12,833,677								$	12,381,860
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	570,147			638			0.45%		$	502,313			814			0.65%
Savings and money market deposits				4,135,375			4,820			0.47%			3,958,633			6,491			0.66%
Time deposits				2,636,693			8,700			1.32%			2,624,250			9,742			1.49%
	Total interest bearing deposits			7,342,215			14,158			0.77%			7,085,196			17,047			0.97%
Borrowings:
FHLB advances				1,988,422			7,888			1.59%			2,229,410			15,036			2.71%
Short-term borrowings				2,057			2			0.46%			35,244			35			0.40%
	Total interest bearing liabilities			9,332,694			22,048			0.95%			9,349,850			32,118			1.38%
Non-interest bearing demand deposits				1,473,085									1,055,998
Other non-interest bearing liabilities				163,201									302,923
	Total liabilities			10,968,980									10,708,771
Stockholders' equity				1,864,697									1,673,089
	Total liabilities and stockholders' equity		$	12,833,677								$	12,381,860
Net interest income						$	166,336								$	148,195
Interest rate spread										6.01%									5.83%
Net interest margin										6.14%									5.92%
(1) On a tax-equivalent basis where applicable
(2) Annualized

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
			Six Months Ended June 30,
			2013									2012
			Average						Yield/			Average						Yield/
			Balance			Interest (1)			Rate (2)			Balance			Interest (1)			Rate (2)
Assets:
Interest earning assets:
Loans			$	5,841,813		$	302,887			10.40%		$	4,544,554		$	279,831			12.37%
Investment securities available for sale				4,354,538			61,657			2.83%			4,543,664			70,047			3.08%
Other interest earning assets				499,805			2,421			0.97%			523,792			2,189			0.84%
	Total interest earning assets			10,696,156			366,965			6.88%			9,612,010			352,067			7.35%
Allowance for loan and lease losses				(62,517)									(53,604)
Non-interest earning assets				2,086,104									2,427,300
	Total assets		$	12,719,743								$	11,985,706
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	557,427			1,309			0.47%		$	488,606			1,581			0.65%
Savings and money market deposits				4,140,073			9,984			0.49%			3,809,788			12,924			0.68%
Time deposits				2,635,927			17,747			1.36%			2,601,538			19,502			1.51%
	Total interest bearing deposits			7,333,427			29,040			0.80%			6,899,932			34,007			0.99%
Borrowings:
FHLB advances				1,939,513			15,578			1.62%			2,231,918			30,555			2.75%
Short-term borrowings				8,446			18			0.43%			18,226			37			0.41%
	Total interest bearing liabilities			9,281,386			44,636			0.97%			9,150,076			64,599			1.42%
Non-interest bearing demand deposits				1,403,161									959,564
Other non-interest bearing liabilities				186,630									247,370
	Total liabilities			10,871,177									10,357,010
Stockholders' equity				1,848,566									1,628,696
	Total liabilities and stockholders' equity		$	12,719,743								$	11,985,706
Net interest income						$	322,329								$	287,468
Interest rate spread										5.91%									5.93%
Net interest margin										6.04%									6.00%
(1) On a tax-equivalent basis where applicable
(2) Annualized

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share amounts)
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2013			2012			2013			2012
Basic earnings per common share:
Numerator:
Net income			$	54,008		$	48,929		$	102,234		$	99,201
Preferred stock dividends				-			(921)			-			(1,841)
	Net income available to common stockholders			54,008			48,008			102,234			97,360
Distributed and undistributed earnings allocated to participating securities				(2,124)			(3,687)			(5,258)			(6,968)
	Income allocated to common stockholders for basic earnings per common share		$	51,884		$	44,321		$	96,976		$	90,392
Denominator:
Weighted average common shares outstanding				100,484,614			93,994,226			98,315,096			95,190,558
Less average unvested stock awards				(1,104,635)			(1,168,872)			(1,135,499)			(1,405,036)
	Weighted average shares for basic earnings per common share			99,379,979			92,825,354			97,179,597			93,785,522
Basic earnings per common share			$	0.52		$	0.48		$	1.00		$	0.96
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share			$	51,884		$	44,321		$	96,976		$	90,392
Adjustment for earnings reallocated from participating securities				2			2,583			1,225			10
	Income used in calculating diluted earnings per common share		$	51,886		$	46,904		$	98,201		$	90,402
Denominator:
Average shares for basic earnings per common share				99,379,979			92,825,354			97,179,597			93,785,522
Dilutive effect of stock options and preferred shares				189,403			5,626,620			2,342,583			189,209
	Weighted average shares for diluted earnings per common share			99,569,382			98,451,974			99,522,181			93,974,731
Diluted earnings per common share			$	0.52		$	0.48		$	0.99		$	0.96

BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
			Three Months Ended June 30,				Six Months Ended June 30,
Financial ratios			2013 (4)		2012 (4)		2013 (4)		2012 (4)
	Return on average assets		1.69%		1.59%		1.62%		1.66%
	Return on average stockholders' equity		11.62%		11.76%		11.15%		12.25%
	Net interest margin (5)		6.14%		5.92%		6.04%		6.00%
			June 30,		December 31,
Capital ratios			2013		2012
	Tier 1 leverage		13.69%		13.16%
	Tier 1 risk-based capital		27.93%		33.60%
	Total risk-based capital		28.94%		34.88%
			June 30,		December 31,
Asset quality ratios			2013		2012
	Non-performing loans to total loans (1) (3)		0.54%		0.62%
	Non-performing assets to total assets (2)		0.66%		0.89%
	Allowance for loan losses to total loans (3)		0.86%		1.06%
	Allowance for loan losses to non-performing loans (1)		158.17%		171.21%
	Net charge-offs to average loans (4)		0.61%		0.17%
(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.
(5)	On a tax-equivalent basis.

Source: BankUnited, Inc.

BankUnited, Inc.
Investor Relations:
Leslie Lunak, 786-313-1698
llunak@bankunited.com
or
Media Relations:
Mary Harris, 305-817-8117
mharris@bankunited.com