View:
Download DOC
Download PDF
Download XLS
Download XBRL
bku-20211021
0001504008false00015040082021-10-212021-10-210001504008exch:XNYS2021-10-212021-10-21


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 FORM 8-K
                     
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):October 21, 2021 (October 21, 2021)

BankUnited, Inc.
(Exact name of registrant as specified in its charter)
Delaware 001-35039 27-0162450
(State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
14817 Oak Lane,Miami Lakes,FL                                                33016
(Address of principal executive offices)(Zip Code)
 
(Registrant’s telephone number, including area code): (305) 569-2000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐                  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐                  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐                  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐                  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
ClassTrading SymbolName of Exchange on Which Registered
Common Stock, $0.01 Par ValueBKUNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐




Item 2.02    Results of Operations and Financial Condition.

On October 21, 2021, BankUnited, Inc. (the “Company”) reported its results for the quarter ended September 30, 2021. A copy of the Company’s press release containing this information and slides containing supplemental information related to this release are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
Item 8.01    Other Events.

On October 20, 2021, the Company's Board of Directors authorized the repurchase of up to $150 million in shares of its outstanding common stock. This authorization is in addition to $58.3 million in remaining authorization under a previously announced share repurchase program. Any repurchases under the program will be made in accordance with applicable securities laws from time to time in open market or private transactions. The extent to which the Company repurchases shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, the Company’s capital position and amount of retained earnings, regulatory requirements and other considerations. No time limit was set for the completion of the share repurchase program, and the program may be suspended or discontinued without prior notice at any time.
Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.
Exhibit
Number		 Description
 October 21, 2021
October 21, 2021
2



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:October 21, 2021BANKUNITED, INC.
 /s/ Leslie N. Lunak
 Name:Leslie N. Lunak
 Title:Chief Financial Officer


3




EXHIBIT INDEX
 
Exhibit
Number		 Description
 October 21, 2021
October 21, 2021




4
Document

Exhibit 99.1
 
BANKUNITED, INC. REPORTS THIRD QUARTER 2021 RESULTS
 
Miami Lakes, Fla. — October 21, 2021 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended September 30, 2021.
"The Company delivered a solid quarter. We're pleased by our continued progress in improving the deposit book and in the positive direction of credit trends" said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended September 30, 2021, the Company reported net income of $86.9 million, or $0.94 per diluted share, compared to $104.0 million or $1.11 per diluted share for the immediately preceding quarter ended June 30, 2021 and $66.6 million, or $0.70 per diluted share, for the quarter ended September 30, 2020.
For the nine months ended September 30, 2021, the Company reported net income of $289.7 million, or $3.12 per diluted share, compared to $112.1 million, or $1.17 per diluted share, for the nine months ended September 30, 2020. On an annualized basis, earnings for the nine months ended September 30, 2021 generated a return on average stockholders' equity of 12.4% and a return on average assets of 1.09%.
Financial Highlights
•Net interest income decreased by $3.2 million compared to the immediately preceding quarter ended June 30, 2021 and increased by $7.6 million compared to the quarter ended September 30, 2020. The net interest margin, calculated on a tax-equivalent basis, was 2.33% for the quarter ended September 30, 2021 compared to 2.37% for the immediately preceding quarter and 2.32% for the quarter ended September 30, 2020. The net interest margin was impacted by pressure on earning asset yields, in part resulting from lower than expected commercial loan growth for the quarter, leading to continued deployment of liquidity into securities. Lower recognition of PPP fees also had an impact.
•As expected, the average cost of total deposits continued to decline, dropping by 0.05% to 0.20% for the quarter ended September 30, 2021 from 0.25% for the immediately preceding quarter ended June 30, 2021, and 0.57% for the quarter ended September 30, 2020. On a spot basis, the average annual percentage yield ("APY") on total deposits declined to 0.19% at September 30, 2021 from 0.22% at June 30, 2021 and 0.36% at December 31, 2020.
•Non-interest bearing demand deposits grew by $324 million during the quarter ended September 30, 2021 while average non-interest bearing demand deposits grew by $749 million compared to the immediately preceding quarter. Average non-interest bearing demand deposits grew by $2.7 billion compared to the third quarter of the prior year. At September 30, 2021, non-interest bearing demand deposits represented 33% of total deposits, compared to 25% of total deposits at December 31, 2020.
•Total deposits declined by $493 million during the quarter ended September 30, 2021, as the Company continues to execute on a strategy focused on improving the quality of the deposit base rather than on growth in total deposits. Money market and savings deposits declined by $1.1 billion in the third quarter. The majority of this decline was attributable to reductions in accounts that management believes will be more price sensitive in a rising rate environment.
•For the quarter ended September 30, 2021, the Company recorded a recovery of credit losses of $(11.8) million compared to a recovery of $(27.5) million for the immediately preceding quarter ended June 30, 2021 and a provision for credit losses of $29.2 million for the quarter ended September 30, 2020. For the nine months ended September 30, 2021 and 2020, the provision for (recovery of) credit losses was $(67.4) million and $180.1 million, respectively. Year over year volatility in the provision related to the expected economic impact of the onset of the COVID-19 pandemic in 2020 and subsequent recovery in 2021.
•As expected, as the economy emerges from the COVID-19 crisis and our borrowers' operating results improve, criticized and classified loans continued to decline. During the quarter ended September 30, 2021, total criticized and classified loans declined by $240 million. The ratio of non-performing loans to total loans declined to 1.21% at September 30, 2021 from 1.28% at June 30, 2021.
1

•Loans currently under short-term deferral totaled $17 million and loans modified under the CARES Act totaled $267 million for a total of $285 million at September 30, 2021, down from a total of $497 million at June 30, 2021.
•Total loans and operating lease equipment, excluding the runoff of PPP loans, grew by $74 million for the quarter ended September 30, 2021.
•Book value per common share and tangible book value per common share continued to accrete, increasing to $34.39 and $33.53, respectively, at September 30, 2021 from $33.91 and $33.08, respectively, at June 30, 2021 and $32.05 and $31.22, respectively at December 31, 2020.
•During the quarter ended September 30, 2021, the Company repurchased approximately 3.2 million shares of its common stock for an aggregate purchase price of $129.4 million, at a weighted average price of $40.62 per share.
•On October 20, 2021, the Company's Board of Directors authorized the repurchase of up to an additional $150 million in shares of its outstanding common stock.
Loans and Leases
A comparison of loan and lease portfolio composition at the dates indicated follows (dollars in thousands):
September 30, 2021June 30, 2021December 31, 2020
Residential and other consumer loans$7,827,224 34.3 %$7,076,274 30.9 %$6,348,222 26.6 %
Multi-family1,181,935 5.2 %1,256,711 5.5 %1,639,201 6.9 %
Non-owner occupied commercial real estate4,537,078 19.9 %4,724,183 20.7 %4,963,273 20.8 %
Construction and land163,988 0.7 %218,634 1.0 %293,307 1.2 %
Owner occupied commercial real estate2,012,376 8.8 %1,960,900 8.6 %2,000,770 8.4 %
Commercial and industrial4,166,914 18.3 %4,205,795 18.4 %4,447,383 18.6 %
PPP332,548 1.5 %491,960 2.1 %781,811 3.3 %
Pinnacle932,865 4.1 %1,046,537 4.6 %1,107,386 4.6 %
Bridge - franchise finance396,589 1.7 %463,874 2.0 %549,733 2.3 %
Bridge - equipment finance379,446 1.7 %421,939 1.8 %475,548 2.0 %
Mortgage warehouse lending ("MWL")877,006 3.8 %1,018,267 4.4 %1,259,408 5.3 %
$22,807,969 100.0 %$22,885,074 100.0 %$23,866,042 100.0 %
Operating lease equipment, net$659,935 $667,935 $663,517 
Residential continues to be an area of strength; residential and other consumer loans grew by $751 million during the quarter ended September 30, 2021. GNMA early buyout loans grew by $50 million, totaling $1.9 billion at September 30, 2021.
The majority of commercial portfolio segments showed net declines for the quarter ended September 30, 2021 as payoffs outpaced production. Commercial real estate portfolio segments in the aggregate declined by $317 million while commercial and industrial loans, including owner-occupied commercial real estate, remained relatively flat, growing by $13 million. Balances for Pinnacle, Bridge and mortgage warehouse declined by $114 million, $110 million and $141 million, respectively. The decrease in multifamily loans was largely attributable to $76 million of runoff in the New York portfolio.
PPP loans declined by $159 million during the quarter ended September 30, 2021, due to forgiveness of first draw program loans.
2

Asset Quality and the Allowance for Credit Losses
The following table presents information about non-performing loans, loans on deferral and CARES Act modifications at September 30, 2021 (dollars in thousands):
Non-Performing Loans Currently Under Short-Term DeferralCARES Act Modification
Residential and other consumer (1)
$33,161 $17,439 $23,012 
Commercial:
CRE by Property Type:
Retail 18,678 — 15,874 
Hotel 22,043 — 81,632 
Office 5,260 — — 
Multi-family11,018 — 7,317 
Other 7,193 — — 
Owner occupied commercial real estate 22,192 — 15,775 
Commercial and industrial 125,550 — 95,871 
Bridge - franchise finance 31,569—27,717
Total commercial243,503— 244,186
Total $276,664 $17,439 $267,198 
(1)    Excludes government insured residential loans.
In the table above, "currently under short-term deferral" refers to loans subject to a 90-day payment deferral at September 30, 2021 and "CARES Act modification" refers to loans subject to longer-term modifications that, were it not for the provisions of the CARES Act, would likely have been reported as TDRs. Non-performing loans may include some loans that have been modified under the CARES Act.
Non-performing loans totaled $276.7 million or 1.21% of total loans at September 30, 2021, compared to $292.7 million or 1.28% of total loans at June 30, 2021 and $244.5 million or 1.02% of total loans at December 31, 2020. Non-performing loans included $49.1 million, $47.7 million and $51.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.22%, 0.21% and 0.22% of total loans at September 30, 2021, June 30, 2021 and December 31, 2020, respectively.
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
September 30, 2021June 30, 2021December 31, 2020
Special mention$153,373 $138,064 $711,516 
Substandard - accruing1,432,801 1,684,666 1,758,654
Substandard - non-accruing227,055 229,646 203,758
Doubtful16,447 17,332 11,867 
Total $1,829,676 $2,069,708 $2,685,795 

3

The following table presents the ACL at the dates indicated, related ACL coverage ratios and net charge-off rates for the quarters ended September 30, 2021 and June 30, 2021 and the year ended December 31, 2020 (dollars in thousands):
ACL
ACL to Total Loans (1)
ACL to Non-Performing Loans
Net Charge-offs to Average Loans (2)
December 31, 2020 $257,323 1.08 %105.26 %0.26 %
June 30, 2021$175,642 0.77 %60.02 %0.24 %
September 30, 2021$159,615 0.70 %57.69 %0.19 %
(1)    ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.81%, 0.90% and 1.26% at September 30, 2021, June 30, 2021 and December 31, 2020, respectively.
(2)    Annualized for the periods ended June 30, 2021 and September 30, 2021.
The ACL at September 30, 2021 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in September 2021, economic information provided by additional sources, information about borrower financial condition and collateral values, data reflecting the impact of recent events on individual borrowers and other relevant information.
For the quarter ended September 30, 2021, the Company recorded a recovery of credit losses of $(11.8) million, which included a recovery of $(11.6) million related to funded loans and an insignificant amount related to unfunded loan commitments and accrued interest receivable. The most significant factors contributing to the recovery of the provision for credit losses and corresponding reduction in the ACL for the quarter included declines in commercial loan balances and the accompanying shift in portfolio composition to residential loans which generally carry lower reserves, reductions in certain qualitative factors and an improving economic forecast. Improved borrower financial performance as reflected in the reduction in criticized and classified assets also contributed to the reduction in the ACL.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Beginning balance$175,642 $266,123 $257,323 $108,671 
Cumulative effect of adoption of CECL— — — 27,305 
Balance after adoption of CECL175,642 266,123 257,323 135,976 
Provision (recovery)(11,554)27,646 (65,523)181,095 
Net charge-offs(4,473)(19,641)(32,185)(42,943)
Ending balance$159,615 $274,128 $159,615 $274,128 
Net interest income
Net interest income for the quarter ended September 30, 2021 was $195.1 million compared to $198.3 million for the immediately preceding quarter ended June 30, 2021 and $187.5 million for the quarter ended September 30, 2020.
Interest income decreased by $7.5 million for the quarter ended September 30, 2021 compared to the immediately preceding quarter, and by $20.2 million compared to the quarter ended September 30, 2020. Interest expense decreased by $4.3 million compared to the immediately preceding quarter and by $27.9 million compared to the quarter ended September 30, 2020. Decreases in interest income resulted from turnover of the loan and investment portfolios at lower prevailing rates, as well as a decline in average loans. Declines in interest expense reflected the impact of our strategy focused on lowering the cost of deposits and improving the deposit mix, runoff and repricing of deposits generated in a higher rate environment, and declines in average interest bearing liabilities.
The Company’s net interest margin, calculated on a tax-equivalent basis, decreased by 0.04% to 2.33% for the quarter ended September 30, 2021, from 2.37% for the immediately preceding quarter ended June 30, 2021. Offsetting factors impacting the net interest margin for the quarter ended September 30, 2021 included:
•The average rate paid on interest bearing deposits decreased to 0.29% for the quarter ended September 30, 2021, from 0.35% for the quarter ended June 30, 2021. This decline reflected continued initiatives taken to lower rates paid on deposits, including the re-pricing of term deposits.
4

•The tax-equivalent yield on investment securities decreased to 1.49% for the quarter ended September 30, 2021 from 1.56% for the quarter ended June 30, 2021. This decrease resulted from the impact of purchases of lower-yielding securities coupled with amortization, maturities and prepayment of securities purchased in a higher rate environment. Accounting adjustments related to faster prepayment speeds of securities purchased at a premium negatively impacted the yield on investment securities for the quarter ended September 30, 2021 by approximately 0.06%.
•The tax-equivalent yield on loans decreased to 3.45% for the quarter ended September 30, 2021, from 3.59% for the quarter ended June 30, 2021. Accelerated amortization of origination fees on PPP loans that were partially or fully forgiven during the quarter impacted the yield on loans by approximately 0.03% for the quarter ended September 30, 2021, compared to 0.11% for the quarter ended June 30, 2021. Factoring out the impact of accelerated amortization of PPP origination fees, the yield on loans for the quarter ended September 30, 2021 decreased by 0.06% compared to the immediately preceding quarter. This decrease is mainly the result of growth in the residential portfolio at average yields lower than our commercial loan segments.
•The increase in average non-interest bearing demand deposits as a percentage of average total deposits also positively impacted the cost of total deposits and the net interest margin.
Capital Actions
On October 20, 2021, the Company's Board of Directors authorized the repurchase of up to $150 million in shares of its outstanding common stock. This authorization is in addition to $58.3 million in remaining authorization as of September 30, 2021, under a previously announced share repurchase program. Any repurchases under the program will be made in accordance with applicable securities laws from time to time in open market or private transactions. The extent to which the Company repurchases shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, the Company’s capital position and amount of retained earnings, regulatory requirements and other considerations. No time limit was set for the completion of the share repurchase program, and the program may be suspended or discontinued without prior notice at any time.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, October 21, 2021 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at http://www.ir.bankunited.com/. The dial in telephone number for the call is (855) 798-3052 (domestic) or (234) 386-2812 (international). The name of the call is BankUnited, Inc. and the conference ID for the call is 9293887. A replay of the call will be available from 12:00 p.m. ET on October 21st through 11:59 p.m. ET on October 28th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 9293887. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.
About BankUnited, Inc.
BankUnited, Inc., with total assets of $35.3 billion at September 30, 2021, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 64 banking centers in 13 Florida counties and 4 banking centers in the New York metropolitan area at September 30, 2021.
5

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. 
The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by the COVID-19 pandemic. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov).
Contact
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak, 786-313-1698
llunak@bankunited.com
Source: BankUnited, Inc.
6

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data) 
September 30,
2021		December 31,
2020
ASSETS  
Cash and due from banks:  
Non-interest bearing$17,973 $20,233 
Interest bearing489,049 377,483 
Cash and cash equivalents 507,022 397,716 
Investment securities (including securities recorded at fair value of $10,319,691 and $9,166,683)10,329,691 9,176,683 
Non-marketable equity securities155,584 195,865 
Loans held for sale— 24,676 
Loans22,807,969 23,866,042 
Allowance for credit losses (159,615)(257,323)
Loans, net22,648,354 23,608,719 
Bank owned life insurance 308,912 294,629 
Operating lease equipment, net659,935 663,517 
Goodwill77,637 77,637 
Other assets619,136 571,051 
Total assets$35,306,271 $35,010,493 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Demand deposits:  
Non-interest bearing$9,158,281 $7,008,838 
Interest bearing3,268,709 3,020,039 
Savings and money market12,460,507 12,659,740 
Time3,228,776 4,807,199 
Total deposits28,116,273 27,495,816 
Federal funds purchased199,000 180,000 
FHLB advances2,431,014 3,122,999 
Notes and other borrowings721,527 722,495 
Other liabilities741,783 506,171 
Total liabilities 32,209,597 32,027,481 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 90,049,326 and 93,067,500 shares issued and outstanding900 931 
Paid-in capital885,873 1,017,518 
Retained earnings2,239,963 2,013,715 
Accumulated other comprehensive loss(30,062)(49,152)
Total stockholders' equity 3,096,674 2,983,012 
Total liabilities and stockholders' equity $35,306,271 $35,010,493 

7

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,
 20212021202020212020
Interest income:    
Loans$194,689 $202,520 $208,646 $602,544 $656,943 
Investment securities38,243 37,674 44,604 114,418 151,596 
Other1,413 1,607 1,322 4,613 7,950 
Total interest income 234,345 241,801 254,572 721,575 816,489 
Interest expense:
Deposits14,273 17,316 37,681 53,965 170,690 
Borrowings24,950 26,174 29,412 77,937 87,407 
Total interest expense 39,223 43,490 67,093 131,902 258,097 
Net interest income before provision for credit losses 195,122 198,311 187,479 589,673 558,392 
Provision for (recovery of) credit losses (11,842)(27,534)29,232 (67,365)180,074 
Net interest income after provision for credit losses 206,964 225,845 158,247 657,038 378,318 
Non-interest income:
Deposit service charges and fees5,553 5,417 4,040 15,870 11,927 
Gain on sale of loans, net
1,403 2,234 2,953 5,391 10,745 
Gain (loss) on investment securities, net(664)4,155 7,181 5,856 10,564 
Lease financing13,212 13,522 13,934 39,222 45,565 
Other non-interest income5,974 7,429 8,184 22,192 19,140 
Total non-interest income 25,478 32,757 36,292 88,531 97,941 
Non-interest expense:
Employee compensation and benefits57,224 56,459 48,448 172,971 156,212 
Occupancy and equipment 11,760 11,492 12,170 35,127 36,440 
Deposit insurance expense3,552 4,222 5,886 15,224 15,095 
Professional fees 2,312 2,139 2,436 6,363 8,771 
Technology and telecommunications16,687 16,851 15,435 49,279 42,056 
Depreciation of operating lease equipment12,944 12,834 12,315 37,995 37,137 
Other non-interest expense13,563 14,455 11,937 42,756 38,154 
Total non-interest expense 118,042 118,452 108,627 359,715 333,865 
Income before income taxes114,400 140,150 85,912 385,854 142,394 
Provision for income taxes27,459 36,176 19,353 96,125 30,278 
Net income$86,941 $103,974 $66,559 $289,729 $112,116 
Earnings per common share, basic$0.94 $1.12 $0.70 $3.12 $1.17 
Earnings per common share, diluted$0.94 $1.11 $0.70 $3.12 $1.17 

8

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Three Months Ended
September 30, 2021		Three Months Ended
June 30, 2021		Three Months Ended
September 30, 2020
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans $22,879,654 $197,995 3.45 %$22,996,564 $205,940 3.59 %$23,447,514 $212,388 3.61 %
Investment securities (3)
10,452,255 38,939 1.49 %9,839,422 38,338 1.56 %9,065,478 45,351 2.00 %
Other interest earning assets750,700 1,413 0.75 %1,380,317 1,607 0.47 %552,515 1,322 0.95 %
Total interest earning assets34,082,609 238,347 2.79 %34,216,303 245,885 2.88 %33,065,507 259,061 3.13 %
Allowance for credit losses(171,381)(215,151)(272,464)
Non-interest earning assets1,856,608 1,732,676 1,897,723 
Total assets$35,767,836 $35,733,828 $34,690,766 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$3,038,038 $1,701 0.22 %$3,069,945 $2,594 0.34 %$2,800,421 $4,127 0.59 %
Savings and money market deposits13,554,572 10,029 0.29 %13,541,237 11,307 0.33 %10,664,462 15,853 0.59 %
Time deposits2,866,746 2,543 0.35 %3,380,582 3,415 0.41 %6,519,852 17,701 1.08 %
Total interest bearing deposits19,459,356 14,273 0.29 %19,991,764 17,316 0.35 %19,984,735 37,681 0.75 %
Federal funds purchased70,054 15 0.08 %— — — %53,587 14 0.10 %
FHLB and PPPLF borrowings2,647,314 15,678 2.35 %2,873,922 16,922 2.36 %4,117,181 20,146 1.95 %
Notes and other borrowings721,638 9,257 5.13 %721,753 9,252 5.13 %722,271 9,252 5.12 %
Total interest bearing liabilities22,898,362 39,223 0.68 %23,587,439 43,490 0.74 %24,877,774 67,093 1.07 %
Non-interest bearing demand deposits8,912,960 8,163,879 6,186,718 
Other non-interest bearing liabilities752,774 851,044 803,498 
Total liabilities32,564,096 32,602,362 31,867,990 
Stockholders' equity3,203,740 3,131,466 2,822,776 
Total liabilities and stockholders' equity$35,767,836 $35,733,828 $34,690,766 
Net interest income$199,124 $202,395 $191,968 
Interest rate spread2.11 %2.14 %2.06 %
Net interest margin2.33 %2.37 %2.32 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    At fair value except for securities held to maturity








9

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Nine Months Ended September 30,
20212020
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans $23,139,389 $612,756 3.54 %$23,278,042 $668,187 3.83 %
Investment securities (3)
9,792,350 116,464 1.59 %8,501,513 153,987 2.42 %
Other interest earning assets1,063,476 4,613 0.58 %654,623 7,950 1.62 %
Total interest earning assets33,995,215 733,833 2.88 %32,434,178 830,124 3.42 %
Allowance for credit losses(213,352)(222,085)
Non-interest earning assets1,771,639 1,874,709 
Total assets$35,553,502 $34,086,802 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$3,017,301 7,069 0.31 %$2,475,388 15,808 0.85 %
Savings and money market deposits13,299,066 33,463 0.34 %10,509,559 71,056 0.90 %
Time deposits3,520,674 13,433 0.51 %7,040,101 83,826 1.59 %
Total interest bearing deposits19,837,041 53,965 0.36 %20,025,048 170,690 1.14 %
Federal funds purchased26,245 17 0.09 %89,033 412 0.62 %
FHLB and PPPLF borrowings2,863,093 50,158 2.34 %4,496,407 66,284 1.97 %
Notes and other borrowings721,897 27,762 5.13 %548,851 20,711 5.03 %
Total interest bearing liabilities23,448,276 131,902 0.75 %25,159,339 258,097 1.37 %
Non-interest bearing demand deposits8,194,570 5,292,702 
Other non-interest bearing liabilities783,618 791,057 
Total liabilities32,426,464 31,243,098 
Stockholders' equity3,127,038 2,843,704 
Total liabilities and stockholders' equity$35,553,502 $34,086,802 
Net interest income$601,931 $572,027 
Interest rate spread2.13 %2.05 %
Net interest margin2.36 %2.35 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    At fair value except for securities held to maturity


10

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
c2021202020212020
Basic earnings per common share:  
Numerator: 
Net income$86,941 $66,559 $289,729 $112,116 
Distributed and undistributed earnings allocated to participating securities
(1,112)(2,896)(3,701)(4,816)
Income allocated to common stockholders for basic earnings per common share$85,829 $63,663 $286,028 $107,300 
Denominator:
Weighted average common shares outstanding92,053,714 92,405,239 92,787,824 92,918,030 
Less average unvested stock awards(1,208,304)(1,183,564)(1,218,416)(1,164,317)
Weighted average shares for basic earnings per common share90,845,410 91,221,675 91,569,408 91,753,713 
Basic earnings per common share$0.94 $0.70 $3.12 $1.17 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share$85,829 $63,663 $286,028 $107,300 
Adjustment for earnings reallocated from participating securities
2 4 5 3 
Income used in calculating diluted earnings per common share$85,831 $63,667 $286,033 $107,303 
Denominator:
Weighted average shares for basic earnings per common share90,845,410 91,221,675 91,569,408 91,753,713 
Dilutive effect of stock options and certain shared-based awards182,448 171,054 152,675 142,008 
Weighted average shares for diluted earnings per common share
91,027,858 91,392,729 91,722,083 91,895,721 
Diluted earnings per common share$0.94 $0.70 $3.12 $1.17 

11


BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Financial ratios (4)
    
Return on average assets0.96 %0.76 %1.09 %0.44 %
Return on average stockholders’ equity10.8 %9.4 %12.4 %5.3 %
Net interest margin (3)
2.33 %2.32 %2.36 %2.35 %
 September 30, 2021December 31, 2020
Asset quality ratios  
Non-performing loans to total loans (1)(5)
1.21 %1.02 %
Non-performing assets to total assets (2)(5)
0.80 %0.71 %
Allowance for credit losses to total loans0.70 %1.08 %
Allowance for credit losses to non-performing loans (1)(5)
57.69 %105.26 %
Net charge-offs to average loans (4)
0.19 %0.26 %
(1)    We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.
(2)    Non-performing assets include non-performing loans, OREO and other repossessed assets.
(3)    On a tax-equivalent basis.
(4) Annualized for the three and nine month periods.
(5)    Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $49.1 million or 0.22% of total loans and 0.14% of total assets, at September 30, 2021; and $51.3 million or 0.22% of total loans and 0.15% of total assets, at December 31, 2020.

September 30, 2021December 31, 2020Required to be Considered Well Capitalized
BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.
Capital ratios
Tier 1 leverage8.6 %9.6 %8.6 %9.5 %5.0 %
Common Equity Tier 1 ("CET1") risk-based capital13.4 %14.9 %12.6 %13.9 %6.5 %
Total risk-based capital15.3 %15.4 %14.7 %14.8 %10.0 %
On a fully-phased in basis with respect to the adoption of CECL, the Company's and the Bank's CET1 risk-based capital ratios would have been 13.3% and 14.8%, respectively, at September 30, 2021.
12

Non-GAAP Financial Measures
ACL to total loans, excluding government insured residential loans, PPP loans and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands):
September 30, 2021June 30, 2021December 31, 2020
Total loans (GAAP)$22,807,969$22,885,074$23,866,042
Less: Government insured residential loans1,913,4971,863,7231,419,074
Less: PPP loans332,548491,960781,811
Less: MWL877,0061,018,2671,259,408
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)$19,684,918$19,511,124$20,405,749
ACL$159,615$175,642$257,323
ACL to total loans (GAAP)0.70 %0.77 %1.08 %
ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)0.81 %0.90 %1.26 %
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, 2021December 31, 2020
Total stockholders’ equity (GAAP)$3,096,674 $2,983,012 
Less: goodwill77,637 77,637 
Tangible stockholders’ equity (non-GAAP)$3,019,037 $2,905,375 
 
Common shares issued and outstanding90,049,326 93,067,500 
 
Book value per common share (GAAP)$34.39 $32.05 
 
Tangible book value per common share (non-GAAP)$33.53 $31.22 
13
exhibit99209302021
October 21, 2021 Q3 2021 – Supplemental Information Exhibit 99.2

 
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of BankUnited, Inc. (“BankUnited,” “BKU” or the “Company”) 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 presentation are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by the COVID-19 pandemic. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov). 2

 
Financial Highlights

 
Strong Quarterly Results; Improving Credit Metrics 4 Operating results Continued improvement in deposit mix Asset Quality Robust capital levels • EPS for the quarter of $0.94 • Annualized ROE for the nine months ended September 30 of 12.4% and ROA of 1.09% • Net interest income declined by $3 million linked quarter, increased by $8 million compared to Q3 2020 • NIM of 2.33% compared to 2.37% for the prior quarter, impacted by pressure on asset yields, reduced PPP fee recognition • Recovery of credit losses of $(11.8) million • Strong residential loan growth • Non-interest DDA grew by $324 million for the quarter, improving to 33% of total deposits • Average non-interest DDA up $2.7 billion compared to Q3 2020 • Average total cost of deposits declined to 0.20% for the quarter • “Spot” APY on total deposits was 0.19% at September 30, 2021 • Total criticized and classified loans declined by $240 million • Loans on short-term deferral and CARES Act Modifications down $212 million in total from June 30 • NPAs declined; NPA ratio improved to 0.80% from 0.83% • The Company's Board authorized the repurchase of up to an additional $150 million in shares of common stock. During Q3 2020, we repurchased $129 million of common stock. • CET1 ratios of 13.4% at the holding company and 14.9% at the bank at September 30, 2021 • Book value per share grew to $34.39 and tangible book value grew to $33.53 at September 30, 2021.

 
Highlights from Third Quarter Earnings 5 Key Highlights Primarily lower gains on investment securities 35% YoY non-interest DDA growth. Spot APY on total deposits declined to 0.19% at September 30, 2021 Impacted by pressure on asset yields; lower PPP fee recognition (1) PPNR is a non-GAAP financial measure. See section entitled “Non-GAAP Financial Measures” on page 30 (2) Includes guaranteed portion of non-accrual SBA loans. (3) Annualized ($ in millions, except per share data) Q3 21 Q2 21 Q3 20 Q2 21 Q3 20 Net Interest Income $195 $198 $187 ($3) $8 Provision for (Recovery of) Credit Losses ($12) ($28) $29 $16 ($41) Total Non-interest Income $25 $33 $36 ($7) ($11) Total Non-interest Expense $118 $118 $109 ($0) $9 Net Income $87 $104 $67 ($17) $20 EPS $0.94 $1.11 $0.70 ($0.17) $0.24 Pre-Provision, Net Revenue (PPNR) (1) $103 $113 $115 ($10) ($13) Period-end Loans $22,808 $22,885 $23,779 ($77) ($971) Period-end Non-interest DDA $9,158 $8,834 $6,790 $324 $2,369 Period-end Deposits $28,116 $28,609 $26,597 ($493) $1,519 CET1 13.4% 13.5% 12.2% (0.10%) 1.2% Total Capital 15.3% 15.4% 14.3% (0.10%) 1.0% Yield on Loans 3.45% 3.59% 3.61% (0.14%) (0.16%) Cost of Deposits 0.20% 0.25% 0.57% (0.05%) (0.37%) Net Interest Margin 2.33% 2.37% 2.32% (0.04%) 0.01% Non-performing Assets to Total Assets (2) 0.80% 0.83% 0.58% (0.03%) 0.22% Allowance for Credit Losses to Total Loans 0.70% 0.77% 1.15% (0.07%) (0.45%) Net Charge-offs to Average Loans(3) 0.19% 0.24% 0.25% (0.05%) (0.06%) Change From

 
Continuing to Transform our Deposit mix ($ in millions) 6 $6,335 $6,820 $7,347 $4,807 $2,978 $3,229 $10,715 $11,262 $10,622 $12,660 $13,579 $12,460 $1,758 $1,771 $2,131 $3,020 $3,218 $3,269 $3,071 $3,621 $4,295 $7,009 $8,834 $9,158$21,879 $23,474 $24,395 $27,496 $28,609 $28,116 12/31/17 12/31/18 12/31/19 12/31/20 6/30/21 9/30/21 Non-interest Demand Interest Demand Money Market / Savings Time Non-interest bearing demand deposits have grown at a compound annual growth rate of 54% since December 31, 2019 Quarterly Cost of Deposits 0.94% 1.52% 1.48% 0.43% 0.25% 0.20% Non-interest bearing as % of Total Deposits 14.0% 15.4% 17.6% 25.5% 30.9% 32.6% We have consistently priced down our deposit portfolio since the Fed began lowering interest rates in late 2019 Spot Average Annual Percentage Yield (“APY”) At December 31, 2019 At March 31, 2020 At June 30, 2020 At September 30, 2020 At December 31, 2020 At March 31, 2021 At June 30, 2021 At September 30, 2021 Total non-maturity deposits 1.11% 0.83% 0.44% 0.37% 0.29% 0.24% 0.20% 0.18% Total interest-bearing deposits 1.71% 1.35% 0.82% 0.65% 0.48% 0.36% 0.30% 0.27% Total deposits 1.42% 1.12% 0.65% 0.49% 0.36% 0.27% 0.22% 0.19%

 
Prudently Underwritten and Well-Diversified Loan Portfolio At September 30, 2021 ($ in millions) 7 Loan Portfolio Over Time CRE C&I Lending Subs Residential Loan Product Type $4,949 $5,661 $6,348 $7,076 $7,827 $7,501 $7,493 $6,896 $6,200 $5,883 $6,478 $6,718 $6,448 $6,167 $6,179 $782 $492 $333 $432 $768 $1,259 $1,018 $877$2,617 $2,515 $2,133 $1,932 $1,709 $21,977 $23,155 $23,866 $22,885 $22,808 12/31/18 12/31/19 12/31/20 6/30/21 9/30/21 Residential CRE C&I PPP Mortgage Warehouse Lending Lending Subs Non-owner Occupied 77% Multi- family 20% Construction and Land 3% Commercial and Industrial 64% Owner Occupied 31% SBA PPP 5% Pinnacle 55% Bridge - Franchise 23% Bridge - Equipment 22% 30 Yr Fixed 24% 15 & 20 Year Fixed 12%10/1 ARM 14% 5/1 & 7/1 ARM 26% Formerly Covered 3% Govt Insured 21% PPP UPB Deferred Origination Fees Amortized Cost First Draw Program 49$ -$ 49$ Second Draw Program 292 (8) 284 341$ (8)$ 333$

 
Allowance for Credit Losses

 
CECL Methodology 9 Underlying Principles Economic Forecast Key Variables • The ACL under CECL represents management’s best estimate at the balance sheet date of expected credit losses over the life of the loan portfolio. • Required to consider historical information, current conditions and a reasonable and supportable economic forecast. • For most portfolio segments, BankUnited uses econometric models to project PD, LGD and expected losses at the loan level and aggregates those expected losses by segment. • Qualitative adjustments may be applied to the quantitative results. • Accounting standard requires an estimate of expected prepayments which may significantly impact the lifetime loss estimate. • Our ACL estimate was informed by Moody’s economic scenarios published in September 2021. • Unemployment at 4.5% for Q4 2021, steadily declining to 3.4% through end of 2022. • Annualized growth in GDP at 7.5% for Q4 2021, normalizing to an average of 2.5% through 2022. • VIX trending at stabilized levels through the forecast horizon. • S&P 500 averaging 4,000 through the R&S period. • 2 year reasonable and supportable forecast period. • The models ingest numerous national, regional and MSA level economic variables and data points. Economic data and variables to which portfolio segments are most sensitive: • Commercial o Market volatility index o S&P 500 index o Unemployment rate o A variety of interest rates and spreads • CRE o Unemployment o CRE property forecast o 10-year treasury o Baa corporate yield o Real GDP growth • Residential o HPI o Unemployment rate o Real GDP growth o Freddie Mac 30-year rate

 
Drivers of Change in the ACL 10 ACL 6/30/21 ACL 9/30/21 Net Portfolio Migration Portfolio and Assumption Changes Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 0.77% 0.70% • Risk rating migration • Changes in specific reserves • New loans • Exits/runoff • Portfolio seasoning • Current market adjustment • Changes to forward path of economic forecast • Primarily reduction in qualitative overlay for borrowers impacted by COVID- 19

 
Allocation of the ACL 11 ($ in millions) (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $49.1 million, $47.7 million, and $51.3 million or 0.22%, 0.21%, and 0.22%, of total loans and 0.14%, 0.13%, and 0.15% of total assets, at September 30, 2021, June 30, 2021, and December 31, 2020. (2) ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.81%, 0.90% and 1.26% at September 30, 2021, June 30, 2021, and December 31, 2020, respectively. See section entitled “Non-GAAP Financial Measures” on page 31. (3) The increase in non-performing loans to total loans and non-performing assets to total assets at June 30, 2021 was primarily attributable to one $69 million commercial and industrial relationship. (4) Annualized for the periods ended June 30, 2021 and September 30, 2021. Balance % of Loans Balance % of Loans Balance % of Loans Residential and other consumer 18.7$ 0.29% 11.9$ 0.17% 9.5$ 0.12% Commercial: Commercial real estate 104.6 1.52% 44.1 0.71% 30.6 0.52% Commercial and industrial 91.0 1.07% 98.6 1.28% 101.6 1.37% Pinnacle 0.3 0.03% 0.2 0.02% 0.2 0.02% Franchise finance 36.3 6.61% 15.6 3.37% 13.6 3.43% Equipment finance 6.4 1.34% 5.2 1.23% 4.1 1.09% Total commercial 238.6 1.36% 163.7 1.04% 150.1 1.00% Allowance for credit losses(2) 257.3$ 1.08% 175.6$ 0.77% 159.6$ 0.70% December 31, 2020 September 30, 2021June 30, 2021 Asset Quality Ratios December 31, 2020 June 30, 2021 September 30, 2021 Non-performing loans to total loans (1)(3) 1.02% 1.28% 1.21% Non-performing assets to total assets (1)(3) 0.71% 0.83% 0.80% Allowance for credit losses to non-performing loans (1) 105.26% 60.02% 57.69% Net charge-offs to average loans (4) 0.26% 0.24% 0.19%

 
Loan Portfolio and Credit

 
Loan Portfolio – Geographic Distribution At September 30, 2021 Commercial (1) Residential CRE (1) Includes PPP, MWL, BFG and Pinnacle FL 39% NY Tri-State Area 21% Other 40% 13 CA 33% FL 8% NY 21% Other 38% FL 56% NY Tri-State Area 34% Other 10%

 
14 Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio At September 30, 2021 ($ in millions) • Includes $2.0 billion of owner- occupied real estate • Some key observations: • Educational services – well established private colleges, universities and high schools • Transportation and warehousing – cruise lines, aviation authorities, logistics • Health care – larger physician practice management companies, HMO’s, mental health & substance abuse; no small practices • Arts and entertainment – stadiums, professional sports teams, gaming • Accommodation and food services – time share, direct food services businesses and concessionaires (1) Excludes PPP loans Industry Balance(1) Commitment % of Portfolio Finance and Insurance 948$ 1,874$ 15.2% Educational Services 715 769 11.6% Wholesale Trade 638 952 10.3% Transportation and Warehousing 462 541 7.5% Health Care and Social Assistance 430 610 7.0% Information 402 584 6.5% Manufacturing 374 522 6.1% Retail Trade 296 392 4.8% Real Estate and Rental and Leasing 287 499 4.6% Other Services (except Public Administration) 236 292 3.8% Construction 218 377 3.5% Utilities 205 314 3.3% Public Administration 204 220 3.3% Professional, Scientific, and Technical Services 203 329 3.3% Accommodation and Food Services 195 245 3.2% Administrative and Support and Waste Management 158 212 2.6% Arts, Entertainment, and Recreation 154 202 2.5% Other 54 72 0.9% 6,179$ 9,006$ 100.0%

 
Loan Portfolio – Commercial Real Estate by Property Type At September 30, 2021 Property Type Balance FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Non- Performing Office 1,860$ 61% 25% 14% 2.55 63.2% 5$ Multifamily 1,244 40% 55% 5% 1.75 60.8% 11 Retail 1,175 53% 38% 9% 1.52 70.2% 19 Warehouse/Industrial 901 62% 21% 17% 2.49 58.0% - Hotel 572 75% 16% 9% 1.39 53.6% 22 Other 131 55% 29% 16% 2.09 56.0% 7 5,883$ 56% 34% 10% 2.04 62.2% 64$ • Commercial real estate loans are secured by income-producing, non-owner occupied properties, typically with well capitalized middle market sponsors • Construction and land loans, included in the table above by property type, represent less than 1% of the total loan portfolio. • All non-performing hotel loans are in the SBA portfolio. • NY commercial Real Estate portfolio contains $132 million of mixed-used properties; $62 million included in the table above in multi-family, $51 million in retail and $19 million in office. ($ in millions) 15

 
16 Loan Portfolio – Deferrals and Modifications At September 30, 2021 ($ in millions) • Loans subject to COVID related deferral or modification under the CARES Act totaled $285 million or 1% of the total loan portfolio at September 30, 2021. $17 million of these loans, all residential, were under short-term deferral at September 30. • Commercial CARES Act modifications are most often 9 to 12- month interest only periods. • $415 million in commercial loans have rolled off of CARES Act modification. 100% of them have resumed regular payments. Balance % of loans Balance % of loans Residential -excluding government insured 41$ (1) 1% 467$ 95% 26$ 5% CRE by Property Type: Retail 16$ 1% 3$ 100% -$ - Hotel 82 14% 262 100% - - Office - - 45 - - - Multifamily 7 1% 16 100% - - Industrial - - - - - - Other - - - - - - Total CRE 105$ 2% 326$ 100% -$ - C&I - Industry: Accomm. and Food Services 31$ 16% -$ - -$ - Retail Trade 32 11% 2 100% - - Finance and Insurance 16 2% 2 100% - - Other 32 3% 60 100% - - Total C&I 111$ 2% 64$ 100% -$ - BFG - Franchise 28$ 7% 25$ 100% -$ - Total Commercial 244$ 2% 415$ 100% -$ - Total 285$ 1% 882$ 97% 26$ 3% Paid Off or Paying as Agreed Not Resumed Regular Payments Loans That Have Rolled Off of Short-Term Deferral or CARES Act Modification Under Short Term Deferral or CARES Act Modification as of September 30, 2021 % of Portfolio (1) Includes $23 million in residential loans modified under the CARES act that are continuing to make payments.

 
Loan Portfolio – Retail At September 30, 2021 ($ in millions) Retail - Commercial Real Estate • No significant mall or “big box” exposure • $33 million and $18 million of Retail-Unanchored and Retail-Anchored, respectively, are mixed-used properties Retail – Commercial & Industrial 17 Property Type Balance Short-Term Deferral or CARES Modification Non-Performing Loans Special Mention Classified Retail - Anchored 604$ 6$ 10$ 19$ 41$ Retail - Unanchored 523 10 9 - 171 Construction to Perm 4 - - - 4 Gas Station 22 - - - - Restaurant 22 - - - 10 1,175$ 16$ 19$ 19$ 226$ Industry Not Secured by Real Estate Owner Occupied Real Estate Total Balance Short-Term Deferral or CARES Modification Non- Performing Loans Special Mention Classified Gasoline Stations 1$ 79$ 80$ -$ 1$ -$ 1$ Health and Personal Care Stores 14 6 20 12 - - 12 Furniture Stores 15 25 40 1 1 - 1 Vending Machine Operators 20 - 20 19 - - 20 Specialty Food Stores 1 11 12 - 2 - 2 Grocery Stores 2 17 19 - - - 1 Automobile Dealers 6 4 10 - - - - Clothing Stores 1 10 11 - - - 3 Florists 11 - 11 - - - - Other 27 46 73 - 3 - 8 98$ 198$ 296$ 32$ 7$ -$ 48$

 
Loan Portfolio – BFG Franchise Finance At September 30, 2021 ($ in millions) Portfolio Breakdown by Concept Portfolio Breakdown by Geography CA 22% FL 8% TX 9%GA 7% UT 7% Other 47% 18 Balance % of BFG Franchise Short-Term Deferral or CARES Modification Non-Performing Loans Special Mention Classified Restaurant Concepts: Burger King 55$ 13% -$ -$ -$ 21$ Popeyes 5 1% - - - - Dunkin Donuts 19 5% - - - 15 Jimmy John's 14 4% - - - 3 Domino's 7 2% - - - - Other 135 34% 25 27 - 51 235$ 59% 25$ 27$ -$ 90$ Non-Restaurant Concepts Planet Fitness 87$ 22% -$ -$ -$ 49$ Orange Theory Fitness 52 13% 3 5 - 52 Other 23 6% - - - 4 162$ 41% 3$ 5$ -$ 105$

 
Loan Portfolio – Hotel At September 30, 2021 ($ in millions) • 75% of our exposure is in Florida, followed by 16% in New York • Includes $53.8 million in SBA loans • All hotel properties in FL and NY remain open • Decline of $144 million of hotel CARES Act modifications during Q3 Exposure by Flag Marriott $170 30% Independent $132 23% Others $100 18% Hilton $85 15% IHG $48 8% Sheraton $37 6% Total Portfolio: $572 million 19

 
Credit Quality – Residential At September 30, 2021 High quality residential portfolio consists of primarily prime jumbo mortgages with de-minimis charge- offs since inception as well as fully government insured assets FICO Distribution(1) Breakdown by LTV(1) Breakdown by Vintage(1) (1) Excludes government insured residential loans. FICOs are refreshed routinely. LTVs are typically based on valuation at origination. <720 or NA 10% 720-759 18% >759 72% 60% or less 35% 61% - 70% 26% 71% - 80% 38% More than 80% 1% Prior 26% 2017 7% 2018 4% 2019 7% 2020 19% 2021 37% 20

 
Asset Quality Metrics Non-performing Loans to Total Loans (2) Non-performing Assets to Total Assets Net Charge-offs to Average Loans(1) (1) YTD net charge-offs, annualized at March 31, 2021, June 30, 2021 and September 30, 2021. (2) The increase in non-performing loans to total loans and non-performing assets to total assets at June 30, 2021 was primarily attributable to one $69 million commercial and industrial relationship. 0.88% 1.02% 1.00% 1.28% 1.21% 0.68% 0.80% 0.79% 1.07% 0.99% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 0.63% 0.71% 0.67% 0.83% 0.80% 0.49% 0.56% 0.53% 0.70% 0.66% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 21 0.05% 0.26% 0.17% 0.24% 0.19% 0.00% 0.20% 0.40% 0.60% 12/31/19 12/31/20 3/31/21 6/30/21 9/30/2021

 
Non-Performing Loans by Portfolio Segment ($ in millions) (1) Includes the guaranteed portion of non-accrual SBA loans totaling $49.1 million, $47.7 million, $48.2 million, $51.3 million, and $45.7 million at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and December 31, 2019, respectively. $19 $29 $26 $46 $33 $18 $36 $38 $27 $24 $6 $24 $13 $7 $11 $65 $43 $58 $119 $113 $21 $14 $45 $36 $33 $32 $62 $67 $63 $61 $64 $205 $244 $234 $293 $277 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 Residential and Other Consumer CRE Multifamily C&I Equipment Franchise SBA(1) 22

 
Criticized and Classified Loans ($ in millions) Commercial Real Estate Commercial & Industrial (1) Franchise Finance Equipment Finance SBA(2) (1) Substandard non-accruing and doubtful includes $16.4 million of loans rated doubtful at September 30, 2021. (2) Includes the guaranteed portion of non-accrual SBA loans totaling $49.1 million, $47.7 million, $48.2 million, $51.3 million, $45.7 million, at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and December 31, 2019, respectively. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 23

 
Criticized and Classified – CRE by Property Type ($ in millions) Office Multifamily Retail Warehouse/Industrial Hotel Other $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 24

 
Criticized and Classified – BFG Franchise Finance ($ in millions) Restaurant Concepts Fitness Concepts Other $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 25

 
Asset Quality – Delinquencies ($ in millions) Commercial(1) CRE Residential (2) (1) Includes lending subsidiaries (2) Excludes government insured residential loans. $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 3/31/21 6/30/21 9/30/21 26

 
Investment Portfolio

 
28 Investment Securities AFS ($ in thousands) The AFS debt securities portfolio of $10.2 billion was in a net unrealized gain position of $44.8 million at September 30, 2021 Portfolio Composition Ratings Distribution Gov 33% AAA 59% AA 6% A 2% US Government and agency 33% Private label RMBS and CMOs 21% Private label CMBS 25% Residential real estate lease- backed securities 6% CLO 10% State Municipal Obligations 2% Other 3% Portfolio Net Unrealized Gain(Loss) Fair Value Net Unrealized Gain(Loss) Fair Value Net Unrealized Gain(Loss) Fair Value US Government and agency 7,593$ 2,463,476$ 24,682$ 3,025,775$ 6,921$ 3,336,363$ Private label RMBS and CMOs 10,840 1,012,177 15,713 998,603 2,653 2,172,078 Private label CMBS 5,456 1,724,684 12,083 2,526,354 8,616 2,591,320 Residential real estate lease-backed securities 2,566 470,025 14,819 650,888 7,505 621,301 CLOs (7,539) 1,197,366 (8,450) 1,140,274 (1,773) 973,535 State and Municipal Obligations 15,774 273,302 21,966 235,709 17,486 225,404 Other 3,656 557,635 4,822 484,806 3,363 278,072 38,346$ 7,698,665$ 85,635$ 9,062,409$ 44,771$ 10,198,073$ December 31, 2019 December 31, 2020 September 30, 2021

 
Non-GAAP Financial Measures

 
30 Non-GAAP Financial Measures PPNR is a non-GAAP financial measure. Management believes this measure is relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses and the ability of the Company to generate earnings sufficient to cover estimated credit losses, particularly in view of the volatility of the provision for credit losses resulting from the COVID-19 pandemic. This measure also provides a meaningful basis for comparison to other financial institutions since it is commonly employed and is a measure frequently cited by investors and analysts. The following table reconciles the non-GAAP financial measure of PPNR to the comparable GAAP financial measurement of income (loss) before income taxes for the periods indicated (in thousands): Septemeber 30, 2021 December 31, 2020 September 30, 2020 Income before income taxes (GAAP) 114,400$ 106,965$ 85,912$ Plus: provision for (recovery of) credit losses (11,842) (1,643) 29,232 PPNR (non-GAAP) 102,558$ 105,322$ 115,144$ Three Months Ended

 
31 Non-GAAP Financial Measures (continued) ACL to total loans, excluding government insured residential loans, PPP and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions and is a measure cited by analysts. The following table reconciles the non- GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands): September 30, 2021 June 30, 2021 December 31, 2020 Total loans (GAAP) 22,807,969$ 22,885,074$ 23,866,042$ Less: Government insured residential loans 1,913,497 1,863,723 1,419,074 Less: PPP loans 332,548 491,960 781,811 Less: MWL 877,006 1,018,267 1,259,408 Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) 19,684,918$ 19,511,124$ 20,405,749$ ACL 159,615$ 175,642$ 257,323$ ACL to total loans (GAAP) 0.70% 0.77% 1.08% ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) 0.81% 0.90% 1.26%