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0001504008false00015040082022-01-202022-01-200001504008exch:XNYS2022-01-202022-01-20


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):January 20, 2022 (January 20, 2022)

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 January 20, 2022, BankUnited, Inc. (the “Company”) reported its results for the quarter ended December 31, 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 9.01    Financial Statements and Exhibits.

(d) Exhibits.
Exhibit
Number		 Description
 January 20, 2022
January 20, 2022
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:January 20, 2022BANKUNITED, INC.
 /s/ Leslie N. Lunak
 Name:Leslie N. Lunak
 Title:Chief Financial Officer


3




EXHIBIT INDEX
 
Exhibit
Number		 Description
 January 20, 2022
January 20, 2022




4
Document

Exhibit 99.1
 
BANKUNITED, INC. REPORTS 2021 RESULTS
 
Miami Lakes, Fla. — January 20, 2022 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2021.
"We are pleased with the quarter, with earnings of $1.41 per share, over $1 billion of loan growth, our best loan growth quarter since the second quarter of 2016, over $1 billion in deposit growth and margin expansion of 11 basis points. Our outlook for the Company going into 2022 is optimistic." said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended December 31, 2021, the Company reported net income of $125.3 million, or $1.41 per diluted share, compared to $86.9 million or $0.94 per diluted share for the immediately preceding quarter ended September 30, 2021 and $85.7 million, or $0.89 per diluted share, for the quarter ended December 31, 2020.
For the year ended December 31, 2021, the Company reported net income of $415.0 million, or $4.52 per diluted share, compared to $197.9 million, or $2.06 per diluted share, for the year ended December 31, 2020. The return on average stockholders' equity for the year ended December 31, 2021 was 13.3%, while the return on average assets was 1.16%.
Financial Highlights
•Total loans, excluding the runoff of PPP loans, grew by $1.0 billion for the quarter ended December 31, 2021, our largest loan growth quarter since the second quarter of 2016.
•The net interest margin, calculated on a tax-equivalent basis, expanded to 2.44% for the quarter ended December 31, 2021 from 2.33% for both the immediately preceding quarter and for the quarter ended December 31, 2020. Net interest income increased by $10.9 million compared to the immediately preceding quarter ended September 30, 2021 and by $12.6 million compared to the quarter ended December 31, 2020.
•Total deposits increased by $1.3 billion during the quarter ended December 31, 2021. Average non-interest bearing demand deposits grew by $418 million for the quarter ended December 31, 2021, compared to the immediately preceding quarter and by $2.2 billion compared to the quarter ended December 31, 2020. At December 31, 2021, non-interest bearing demand deposits represented 30% of total deposits, compared to 25% of total deposits at December 31, 2020. Non-interest bearing demand deposits declined by $183 million during the quarter ended December 31, 2021.
•The average cost of total deposits was 0.19% for the quarter ended December 31, 2021 compared to 0.20% for the immediately preceding quarter ended September 30, 2021. The average cost of total deposits was 0.43% for the quarter ended December 31, 2020. On a spot basis, the average annual percentage yield ("APY") on total deposits declined to 0.16% at December 31, 2021 from 0.19% at September 30, 2021 and 0.36% at December 31, 2020.
•Criticized and classified loans continued to decline. During the quarter ended December 31, 2021, total criticized and classified loans declined by $367 million. The ratio of non-performing loans to total loans declined to 0.87% at December 31, 2021 from 1.21% at September 30, 2021. Loans currently under short-term deferral totaled $11 million and loans modified under the CARES Act totaled $194 million for a total of $205 million at December 31, 2021, down from a total of $285 million at September 30, 2021.
•For the quarter ended December 31, 2021, the Company recorded a provision for credit losses of $0.2 million compared to a recovery of $(11.8) million for the immediately preceding quarter ended September 30, 2021 and a recovery of credit losses of $(1.6) million for the quarter ended December 31, 2020. For the years ended December 31, 2021 and 2020, the provision for (recovery of) credit losses was $(67.1) million and $178.4 million, respectively. Year over year volatility in the provision is related to the expected economic impact of the onset of the COVID-19 pandemic in 2020 and subsequent economic recovery in 2021.
1

•As previously reported, during the quarter ended December 31, 2021, the Bank reached a settlement with the Florida Department of Revenue related to certain tax matters for the 2009-2019 tax years and recorded a tax benefit of $43.9 million, net of federal impact. Unrelated to the Florida settlement, the Bank recorded an additional $25.2 million tax benefit related to a reduction in the liability for unrecognized tax benefits arising from expiration of statutes of limitation in the Federal and certain state jurisdictions.
•The following table details $40.4 million of notable items that impacted income before income taxes for the quarter ended December 31, 2021 (income (expense) in thousands):
Gain on sale of single-family residential loans$18,216 
Discontinuance of cash flow hedges(44,833)
Special employee bonus(6,809)
Professional fees related to tax settlement(4,198)
Impairment of operating lease equipment(2,813)
$(40,437)
•Book value per common share and tangible book value per common share continued to accrete, increasing to $35.47 and $34.56, respectively, at December 31, 2021 from $34.39 and $33.53, respectively, at September 30, 2021 and $32.05 and $31.22, respectively at December 31, 2020.
•During the quarter ended December 31, 2021, the Company repurchased approximately 4.4 million shares of its common stock for an aggregate purchase price of $181.8 million, at a weighted average price of $41.45 per share.
Loans and Leases
A comparison of loan and lease portfolio composition at the dates indicated follows (dollars in thousands):
December 31, 2021September 30, 2021December 31, 2020
Residential and other consumer loans$8,368,380 35.2 %$7,827,224 34.3 %$6,348,222 26.6 %
Multi-family1,154,738 4.9 %1,181,935 5.2 %1,639,201 6.9 %
Non-owner occupied commercial real estate4,381,610 18.4 %4,537,078 19.9 %4,963,273 20.8 %
Construction and land165,390 0.7 %163,988 0.7 %293,307 1.2 %
Owner occupied commercial real estate1,944,658 8.2 %2,012,376 8.8 %2,000,770 8.4 %
Commercial and industrial4,790,275 20.2 %4,166,914 18.3 %4,447,383 18.6 %
PPP248,505 1.0 %332,548 1.5 %781,811 3.3 %
Pinnacle919,641 3.9 %932,865 4.1 %1,107,386 4.6 %
Bridge - franchise finance342,124 1.4 %396,589 1.7 %549,733 2.3 %
Bridge - equipment finance357,599 1.5 %379,446 1.7 %475,548 2.0 %
Mortgage warehouse lending ("MWL")1,092,133 4.6 %877,006 3.8 %1,259,408 5.3 %
$23,765,053 100.0 %$22,807,969 100.0 %$23,866,042 100.0 %
Operating lease equipment, net$640,726 $659,935 $663,517 
In the aggregate, commercial loans, excluding the runoff of PPP loans, grew by $500 million during the quarter ended December 31, 2021. The largest increase was in commercial and industrial loans, including owner-occupied commercial real estate which grew by $556 million for the quarter, followed by mortgage warehouse lending which grew by $215 million for the quarter. MWL line utilization was 56% at December 31, 2021 compared to 51% at September 30, 2021 and 62% at December 31, 2020. Commercial real estate portfolio segments in the aggregate declined by $181 million. Balances for Pinnacle and Bridge declined by $13 million and $76 million, respectively. Residential and other consumer loans grew by $541 million during the quarter ended December 31, 2021. GNMA early buyout loans grew by $110 million, totaling $2.0 billion at December 31, 2021.

2

Asset Quality and the Allowance for Credit Losses ("ACL")
The following table presents information about non-performing loans, loans on deferral and CARES Act modifications at December 31, 2021 (in thousands):
Non-Performing Loans Currently Under Short-Term DeferralCARES Act Modification
Residential and other consumer (1)
$28,577 $10,601 $22,264 
Commercial:
CRE by Property Type:
Retail 18,152 — — 
Hotel 18,282 — 14,828 
Office 814 — — 
Multi-family10,865 — 7,315 
Other 7,167 — — 
Owner occupied commercial real estate 20,453 — 15,109 
Commercial and industrial 68,720 — 106,625 
Bridge - franchise finance 32,879—27,881
Total commercial177,332— 171,758
Total $205,909 $10,601 $194,022 
(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 December 31, 2021 and "CARES Act modification" refers to loans subject to longer-term modifications that, were it not for the provisions of the CARES Act, which expired on January 1, 2022, would likely have been reported as TDRs. Non-performing loans may include some loans that have been modified under the CARES Act. All of the loans that have rolled off of modification to date have paid off or resumed regular payments.
Non-performing loans totaled $205.9 million or 0.87% of total loans at December 31, 2021, compared to $276.7 million or 1.21% of total loans at September 30, 2021 and $244.5 million or 1.02% of total loans at December 31, 2020. Non-performing loans included $46.1 million, $49.1 million and $51.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.19% of total loans at December 31, 2021 and 0.22% of total loans at both September 30, 2021 and December 31, 2020.
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
December 31, 2021September 30, 2021December 31, 2020
Special mention$148,593 $153,373 $711,516 
Substandard - accruing1,136,378 1,432,801 1,758,654
Substandard - non-accruing129,579 227,055 203,758
Doubtful47,754 16,447 11,867 
Total $1,462,304 $1,829,676 $2,685,795 

3

The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the years ended December 31, 2021 and 2020 (dollars in thousands):
ACL
ACL to Total Loans (1)
ACL to Non-Performing LoansNet Charge-offs to Average Loans
December 31, 2020 $257,323 1.08 %105.26 %0.26 %
September 30, 2021$159,615 0.70 %57.69 %
December 31, 2021$126,457 0.53 %61.41 %0.29 %
(1)    ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.62%, 0.81% and 1.26% at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

The ACL at December 31, 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 December 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 December 31, 2021, the Company recorded a provision for credit losses of $0.2 million, which included a provision of $1.1 million related to funded loans offset by recoveries of provision related to unfunded loan commitments and accrued interest receivable. The decline in the ACL for the quarter ended December 31, 2021 was primarily attributable to charge-offs, the substantial majority of which were previously reserved for.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
Three Months Ended December 31,Years Ended December 31,
 2021202020212020
Beginning balance$159,615 $274,128 $257,323 $108,671 
Cumulative effect of adoption of CECL— — — 27,305 
Balance after adoption of CECL159,615 274,128 257,323 135,976 
Provision (recovery)1,067 1,244 (64,456)182,339 
Net charge-offs(34,225)(18,049)(66,410)(60,992)
Ending balance$126,457 $257,323 $126,457 $257,323 
Net interest income
Net interest income for the quarter ended December 31, 2021 was $206.0 million compared to $195.1 million for the immediately preceding quarter ended September 30, 2021 and $193.4 million for the quarter ended December 31, 2020. Interest income increased by $3.5 million for the quarter ended December 31, 2021 compared to the immediately preceding quarter, and decreased by $13.2 million compared to the quarter ended December 31, 2020. Interest expense decreased by $7.4 million compared to the immediately preceding quarter and by $25.9 million compared to the quarter ended December 31, 2020.
The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.11% to 2.44% for the quarter ended December 31, 2021, from 2.33% for the immediately preceding quarter ended September 30, 2021. Factors impacting the net interest margin for the quarter ended December 31, 2021 included:
•The average rate paid on FHLB and FRB advances decreased to 1.86% for the quarter ended December 31, 2021, from 2.35% for the quarter ended September 30, 2021. This decrease resulted from the termination and maturity of higher cost cash flow hedges and related borrowings during the quarter ended December 31, 2021.
•The average rate paid on interest bearing deposits decreased to 0.27% for the quarter ended December 31, 2021, from 0.29% for the quarter ended September 30, 2021. This decline reflected continued initiatives taken to lower rates paid on deposits, including the re-pricing of term deposits, partially offset by the issuance of some callable CDs in anticipation of rising rates.
•The tax-equivalent yield on investment securities increased to 1.54% for the quarter ended December 31, 2021 from 1.49% for the quarter ended September 30, 2021. This increase resulted primarily from slower prepayment speeds on securities purchased at a premium.
4

•The tax-equivalent yield on loans increased to 3.50% for the quarter ended December 31, 2021, from 3.45% for the quarter ended September 30, 2021.
Non-interest income and Non-interest expense
Non-interest income totaled $45.6 million for the quarter ended December 31, 2021 compared to $25.5 million for the immediately preceding quarter ended September 30, 2021 and $35.3 million for the quarter ended December 31, 2020. The main reason for the increase in non-interest income for the quarter ended December 31, 2021 compared to the immediately preceding quarter was an increase in the gain on sale of loans. During the quarter, the Company sold a portfolio of single-family residential loans for a gain of $18.2 million.
Non-interest expense totaled $187.9 million for the quarter ended December 31, 2021 compared to $118.0 million for the immediately preceding quarter ended September 30, 2021 and $123.3 million for the quarter ended December 31, 2020. Non-interest expense totaled $547.6 million and $457.2 million for the year ended December 31, 2021 and 2020, respectively. The following table details notable items that impacted non-interest expense for the quarter ended December 31, 2021 (in thousands):
Discontinuance of cash flow hedges$(44,833)
Special employee bonus(6,809)
Professional fees related to tax settlement(4,198)
Impairment of operating lease equipment(2,813)
$(58,653)
•Employee compensation and benefits increased by $13.3 million for the quarter ended December 31, 2021 compared to the immediately preceding quarter. The Company paid a special bonus in the fourth quarter to substantially all of its employees, in recognition of their hard work and efforts in the challenging environment we have faced over the past two years. Employees, regardless of their position in the organization, shared equally in the bonus payout, which totaled $6.8 million. Additionally, there was an increase of $4.6 million in variable compensation accruals for both incentives and regular annual discretionary bonuses in the fourth quarter.
•Professional fees increased by $5.7 million for the quarter ended December 31, 2021 compared to the immediately preceding quarter. The increase is primarily a result of $4.2 million related to the tax settlement with the Florida Department of Revenue discussed above.
•A loss on discontinuance of cash flow hedges totaling $44.8 million resulted from the termination of $401 million notional of pay fixed interest rate swaps at a weighted average pay rate of 3.24% during the quarter ended December 31, 2021.
•Depreciation and impairment of operating lease equipment included $2.8 million resulting from impairment charges related to certain sand cars in the operating lease equipment portfolio.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, January 20, 2022 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. 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 1618956. A replay of the call will be available from 12:00 p.m. ET on January 20th through 11:59 p.m. ET on January 27th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 1618956. 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 $35.8 billion at December 31, 2021, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 63 banking centers in 13 Florida counties and 4 banking centers in the New York metropolitan area at December 31, 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) 
December 31,
2021		December 31,
2020
ASSETS  
Cash and due from banks:  
Non-interest bearing$19,143 $20,233 
Interest bearing295,714 377,483 
Cash and cash equivalents 314,857 397,716 
Investment securities (including securities recorded at fair value of $10,054,198 and $9,166,683)10,064,198 9,176,683 
Non-marketable equity securities135,859 195,865 
Loans held for sale— 24,676 
Loans23,765,053 23,866,042 
Allowance for credit losses (126,457)(257,323)
Loans, net23,638,596 23,608,719 
Bank owned life insurance 309,477 294,629 
Operating lease equipment, net640,726 663,517 
Goodwill77,637 77,637 
Other assets634,046 571,051 
Total assets$35,815,396 $35,010,493 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Demand deposits:  
Non-interest bearing$8,975,621 $7,008,838 
Interest bearing3,709,493 3,020,039 
Savings and money market13,368,745 12,659,740 
Time3,384,243 4,807,199 
Total deposits29,438,102 27,495,816 
Federal funds purchased199,000 180,000 
FHLB advances1,905,000 3,122,999 
Notes and other borrowings721,416 722,495 
Other liabilities514,117 506,171 
Total liabilities 32,777,635 32,027,481 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 85,647,986 and 93,067,500 shares issued and outstanding856 931 
Paid-in capital707,503 1,017,518 
Retained earnings2,345,342 2,013,715 
Accumulated other comprehensive loss(15,940)(49,152)
Total stockholders' equity 3,037,761 2,983,012 
Total liabilities and stockholders' equity $35,815,396 $35,010,493 

7

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
Three Months EndedYears Ended
 December 31,September 30,December 31,December 31,December 31,
 20212021202020212020
Interest income:    
Loans$198,275 $194,689 $207,232 $800,819 $864,175 
Investment securities38,201 38,243 42,260 152,619 193,856 
Other1,397 1,413 1,628 6,010 9,578 
Total interest income 237,873 234,345 251,120 959,448 1,067,609 
Interest expense:
Deposits13,631 14,273 29,290 67,596 199,980 
Borrowings18,227 24,950 28,464 96,164 115,871 
Total interest expense 31,858 39,223 57,754 163,760 315,851 
Net interest income before provision for credit losses 206,015 195,122 193,366 795,688 751,758 
Provision for (recovery of) credit losses 246 (11,842)(1,643)(67,119)178,431 
Net interest income after provision for credit losses 205,769 206,964 195,009 862,807 573,327 
Non-interest income:
Deposit service charges and fees5,815 5,553 4,569 21,685 16,496 
Gain on sale of loans, net
19,003 1,403 2,425 24,394 13,170 
Gain (loss) on investment securities, net590 (664)7,203 6,446 17,767 
Lease financing14,041 13,212 13,547 53,263 59,112 
Other non-interest income6,173 5,974 7,536 28,365 26,676 
Total non-interest income 45,622 25,478 35,280 134,153 133,221 
Non-interest expense:
Employee compensation and benefits70,561 57,224 60,944 243,532 217,156 
Occupancy and equipment 12,817 11,760 11,797 47,944 48,237 
Deposit insurance expense3,471 3,552 6,759 18,695 21,854 
Professional fees 8,023 2,312 2,937 14,386 11,708 
Technology and telecommunications18,221 16,687 16,052 67,500 58,108 
Discontinuance of cash flow hedges44,833 — — 44,833 — 
Depreciation and impairment of operating lease equipment15,769 12,944 12,270 53,764 49,407 
Other non-interest expense14,165 13,563 12,565 56,921 50,719 
Total non-interest expense 187,860 118,042 123,324 547,575 457,189 
Income before income taxes63,531 114,400 106,965 449,385 249,359 
Provision (benefit) for income taxes(61,724)27,459 21,228 34,401 51,506 
Net income$125,255 $86,941 $85,737 $414,984 $197,853 
Earnings per common share, basic$1.42 $0.94 $0.89 $4.52 $2.06 
Earnings per common share, diluted$1.41 $0.94 $0.89 $4.52 $2.06 

8

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Three Months Ended December 31, 2021Three Months Ended
September 30, 2021		Three Months Ended December 31, 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$22,919,535 $201,345 3.50 %$22,879,654 $197,995 3.45 %$23,706,859 $210,896 3.55 %
Investment securities (3)
10,113,026 38,889 1.54 %10,452,255 38,939 1.49 %9,446,389 42,966 1.82 %
Other interest earning assets1,184,056 1,397 0.47 %750,700 1,413 0.75 %726,273 1,628 0.89 %
Total interest earning assets34,216,617 241,631 2.81 %34,082,609 238,347 2.79 %33,879,521 255,490 3.01 %
Allowance for credit losses(149,319)(171,381)(280,243)
Non-interest earning assets1,767,850 1,856,608 1,817,476 
Total assets$35,835,148 $35,767,836 $35,416,754 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$3,058,355 $1,481 0.19 %$3,038,038 $1,701 0.22 %$2,903,300 $3,637 0.50 %
Savings and money market deposits13,460,084 9,619 0.28 %13,554,572 10,029 0.29 %11,839,631 14,517 0.49 %
Time deposits3,399,302 2,531 0.30 %2,866,746 2,543 0.35 %5,360,630 11,136 0.83 %
Total interest bearing deposits19,917,741 13,631 0.27 %19,459,356 14,273 0.29 %20,103,561 29,290 0.58 %
Federal funds purchased56,793 13 0.09 %70,054 15 0.08 %20,707 6 0.12 %
FHLB and PPPLF borrowings1,909,450 8,957 1.86 %2,647,314 15,678 2.35 %3,698,666 19,207 2.07 %
Notes and other borrowings721,525 9,257 5.13 %721,638 9,257 5.13 %722,581 9,251 5.12 %
Total interest bearing liabilities22,605,509 31,858 0.56 %22,898,362 39,223 0.68 %24,545,515 57,754 0.94 %
Non-interest bearing demand deposits9,330,805 8,912,960 7,152,967 
Other non-interest bearing liabilities785,254 752,774 772,277 
Total liabilities32,721,568 32,564,096 32,470,759 
Stockholders' equity3,113,580 3,203,740 2,945,995 
Total liabilities and stockholders' equity$35,835,148 $35,767,836 $35,416,754 
Net interest income$209,773 $199,124 $197,736 
Interest rate spread2.25 %2.11 %2.07 %
Net interest margin2.44 %2.33 %2.33 %
(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)
Years Ended December 31,
20212020
Average
Balance
Interest (1)
Yield/
Rate (1)
Average
Balance
Interest (1)
Yield/
Rate (1)
Assets:
Interest earning assets:
Loans$23,083,973 $814,101 3.53 %$23,385,832 $879,082 3.76 %
Investment securities (2)
9,873,178 155,353 1.57 %8,739,023 196,954 2.25 %
Other interest earning assets1,093,869 6,010 0.55 %672,634 9,578 1.42 %
Total interest earning assets34,051,020 975,464 2.86 %32,797,489 1,085,614 3.31 %
Allowance for credit losses(197,212)(236,704)
Non-interest earning assets1,770,685 1,860,322 
Total assets$35,624,493 $34,421,107 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$3,027,649 8,550 0.28 %$2,582,951 19,445 0.75 %
Savings and money market deposits13,339,651 43,082 0.32 %10,843,894 85,572 0.79 %
Time deposits3,490,082 15,964 0.46 %6,617,939 94,963 1.43 %
Total interest bearing deposits19,857,382 67,596 0.34 %20,044,784 199,980 1.00 %
Federal funds purchased33,945 30 0.09 %71,858 418 0.58 %
FHLB and PPPLF borrowings2,622,723 59,116 2.25 %4,295,882 85,491 1.99 %
Notes and other borrowings721,803 37,018 5.13 %592,521 29,962 5.06 %
Total interest bearing liabilities23,235,853 163,760 0.70 %25,005,045 315,851 1.26 %
Non-interest bearing demand deposits8,480,964 5,760,309 
Other non-interest bearing liabilities784,031 786,337 
Total liabilities32,500,848 31,551,691 
Stockholders' equity3,123,645 2,869,416 
Total liabilities and stockholders' equity$35,624,493 $34,421,107 
Net interest income$811,704 $769,763 
Interest rate spread2.16 %2.05 %
Net interest margin2.38 %2.35 %
(1)    On a tax-equivalent basis where applicable
(2)    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 December 31,Years Ended December 31,
c2021202020212020
Basic earnings per common share:  
Numerator: 
Net income$125,255 $85,737 $414,984 $197,853 
Distributed and undistributed earnings allocated to participating securities
(2,059)(4,015)(5,991)(8,882)
Income allocated to common stockholders for basic earnings per common share$123,196 $81,722 $408,993 $188,971 
Denominator:
Weighted average common shares outstanding88,123,835 92,725,905 91,612,243 92,869,736 
Less average unvested stock awards(1,193,180)(1,160,984)(1,212,055)(1,163,480)
Weighted average shares for basic earnings per common share86,930,655 91,564,921 90,400,188 91,706,256 
Basic earnings per common share$1.42 $0.89 $4.52 $2.06 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share$123,196 $81,722 $408,993 $188,971 
Adjustment for earnings reallocated from participating securities
(234)(67)(585)(123)
Income used in calculating diluted earnings per common share$122,962 $81,655 $408,408 $188,848 
Denominator:
Weighted average shares for basic earnings per common share86,930,655 91,564,921 90,400,188 91,706,256 
Dilutive effect of stock options— 20,179 134 24,608 
Weighted average shares for diluted earnings per common share
86,930,655 91,585,100 90,400,322 91,730,864 
Diluted earnings per common share$1.41 $0.89 $4.52 $2.06 

11


BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 Three Months Ended December 31,Years Ended December 31,
 2021202020212020
Financial ratios (4)
    
Return on average assets1.39 %0.96 %1.16 %0.57 %
Return on average stockholders’ equity16.0 %11.6 %13.3 %6.9 %
Net interest margin (3)
2.44 %2.33 %2.38 %2.35 %
 December 31, 2021September 30, 2021December 31, 2020
Asset quality ratios  
Non-performing loans to total loans (1)(5)
0.87 %1.21 %1.02 %
Non-performing assets to total assets (2)(5)
0.58 %0.80 %0.71 %
Allowance for credit losses to total loans0.53 %0.70 %1.08 %
Allowance for credit losses to non-performing loans (1)(5)
61.41 %57.69 %105.26 %
Net charge-offs to average loans
0.29 %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 month periods.
(5)    Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021; and $51.3 million or 0.22% of total loans and 0.15% of total assets at December 31, 2020.

December 31, 2021December 31, 2020Required to be Considered Well Capitalized
BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.
Capital ratios
Tier 1 leverage8.4 %9.6 %8.6 %9.5 %5.0 %
Common Equity Tier 1 ("CET1") risk-based capital12.6 %14.5 %12.6 %13.9 %6.5 %
Total risk-based capital14.3 %14.9 %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 12.5% and 14.4%, respectively, at December 31, 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):
December 31, 2021September 30, 2021December 31, 2020
Total loans (GAAP)$23,765,053$22,807,969$23,866,042
Less: Government insured residential loans2,023,2211,913,4971,419,074
Less: PPP loans248,505332,548781,811
Less: MWL1,092,133877,0061,259,408
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)$20,401,194$19,684,918$20,405,749
ACL$126,457$159,615$257,323
ACL to total loans (GAAP)0.53 %0.70 %1.08 %
ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)0.62 %0.81 %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): 
December 31, 2021September 30, 2021December 31, 2020
Total stockholders’ equity (GAAP)$3,037,761 $3,096,674 $2,983,012 
Less: goodwill77,637 77,637 77,637 
Tangible stockholders’ equity (non-GAAP)$2,960,124 $3,019,037 $2,905,375 
 
Common shares issued and outstanding85,647,986 90,049,326 93,067,500 
 
Book value per common share (GAAP)$35.47 $34.39 $32.05 
 
Tangible book value per common share (non-GAAP)$34.56 $33.53 $31.22 
13
exhibit99212312021-final
January 20, 2022 Q4 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 Loans and Deposits Asset Quality Capital • Net income for the quarter of $125.3 million and EPS of $1.41 • Pre-tax income was reduced by notable items totaling $40.4 million • $69.1 million of tax benefits recognized for the quarter • ROE for the year ended December 31, 2021 of 13.3% and ROA of 1.16% • NIM expanded by 11bps to 2.44% and net interest income increased by $11 million linked quarter • Loans, excluding the runoff of PPP, grew by $1.0 billion for the quarter. Largest loan growth quarter since the second quarter of 2016. • Commercial loans excluding PPP grew by $500 million; residential loans grew by $541 million. • Total deposits increased by $1.3 billion for the quarter. • Average total cost of deposits declined to 0.19% for the quarter. • “Spot” APY on total deposits was 0.16% at December 31, 2021. • Total criticized and classified loans declined by $367 million • Loans on short-term deferral and CARES Act Modifications continued to decline; totaled $194 million at December 31st compared to $285 million at September 30; all loans that have rolled off of modification have resumed regular payments or paid off. • NPA ratio improved to 0.58% from 0.80% and is now below 12/31/19 levels • During Q4 2021, we repurchased $182 million of common stock. • CET1 ratios of 12.6% at the holding company and 14.5% at the bank at December 31, 2021 • Book value per share grew to $35.47 and tangible book value grew to $34.56 at December 31, 2021.

 
Highlights from Fourth Quarter Earnings 5 Key Highlights Q4 2021 includes a gain on sale of residential loans of $18 million. Includes $59 million in notable expense items. Impacted by $69 million in tax benefits Growth of over $1 billion in Q4 excluding PPP 28% YoY non-interest DDA growth; Non-interest DDA, on a net basis, accounted for all annual deposit growth Spot APY on total deposits declined to 0.16% at December 31, 2021 (1) Includes guaranteed portion of non-accrual SBA loans. (2) Annualized for the period ended September 30, 2021. ($ in millions, except per share data) Q4 21 Q3 21 Q4 20 Q3 21 Q4 20 Net Interest Income $206 $195 $193 $11 $13 Provision for (Recovery of) Credit Losses $0.2 ($12) ($2) $12 $2 Total Non-interest Income $46 $25 $35 $20 $10 Total Non-interest Expense $188 $118 $123 $70 $65 Net Income $125 $87 $86 $38 $40 EPS $1.41 $0.94 $0.89 $0.47 $0.52 Period-end Loans $23,765 $22,808 $23,866 $957 ($101) Period-end Non-interest DDA $8,976 $9,158 $7,009 ($183) $1,967 Period-end Deposits $29,438 $28,116 $27,496 $1,322 $1,942 CET1 12.6% 13.4% 12.6% (0.8%) - Total Capital 14.3% 15.3% 14.7% (1.0%) (0.4%) Yield on Loans 3.50% 3.45% 3.55% 0.05% (0.05%) Cost of Deposits 0.19% 0.20% 0.43% (0.01%) (0.24%) Net Interest Margin 2.44% 2.33% 2.33% 0.11% 0.11% Non-performing Assets to Total Assets (1) 0.58% 0.80% 0.71% (0.22%) (0.13%) Allowance for Credit Losses to Total Loans 0.53% 0.70% 1.08% (0.17%) (0.55%) Net Charge-offs to Average Loans(2) 0.29% 0.19% 0.26% 0.10% 0.03% Change From

 
Notable Items Impacting Fourth Quarter Earnings 6 The following table details $40.4 million of notable items that impacted income before income taxes for the quarter ended December 31, 2021 (income (expense) in thousands): As previously reported, during the quarter ended December 31, 2021, the Bank reached a settlement with the Florida Department of Revenue related to certain tax matters for the 2009-2019 tax years and recorded a tax benefit of $43.9 million, net of federal impact. Unrelated to the Florida settlement, the Bank recorded an additional $25.2 million tax benefit related to a reduction in the liability for unrecognized tax benefits arising from expiration of statutes of limitation in the Federal and certain state jurisdictions. Gain on sale of single-family residential loans 18,216$ Discontinuance of cash flow hedges (44,833) Special employee bonus (6,809) Professional fees related to tax settlement (4,198) Impairment of operating lease equipment (2,813) (40,437)$

 
Transformed Deposit mix ($ in millions) 7 $6,335 $6,820 $7,347 $4,807 $3,229 $3,384 $10,715 $11,262 $10,622 $12,660 $12,460 $13,369 $1,758 $1,771 $2,131 $3,020 $3,269 $3,709 $3,071 $3,621 $4,295 $7,009 $9,158 $8,976$21,879 $23,474 $24,395 $27,496 $28,116 $29,438 12/31/17 12/31/18 12/31/19 12/31/20 9/30/21 12/31/21 Non-interest Demand Interest Demand Money Market / Savings Time Non-interest bearing demand deposits have grown at a compound annual growth rate of 44% since December 31, 2019 Quarterly Cost of Deposits 0.94% 1.52% 1.48% 0.43% 0.20% 0.19% Non-interest bearing as % of Total Deposits 14.0% 15.4% 17.6% 25.5% 32.6% 30.5% 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 At December 31, 2021 Total non-maturity deposits 1.11% 0.83% 0.44% 0.37% 0.29% 0.24% 0.20% 0.18% 0.14% Total interest-bearing deposits 1.71% 1.35% 0.82% 0.65% 0.48% 0.36% 0.30% 0.27% 0.23% Total deposits 1.42% 1.12% 0.65% 0.49% 0.36% 0.27% 0.22% 0.19% 0.16%

 
Prudently Underwritten and Well-Diversified Loan Portfolio At December 31, 2021 ($ in millions) 8 Loan Portfolio Over Time CRE C&I Lending Subs Residential Loan Product Type $4,949 $5,661 $6,348 $7,827 $8,368 $7,501 $7,493 $6,896 $5,883 $5,702 $6,478 $6,718 $6,448 $6,179 $6,735 $782 $333 $249 $432 $768 $1,259 $877 $1,092 $2,617 $2,515 $2,133 $1,709 $1,619$21,977 $23,155 $23,866 $22,808 $23,765 12/31/18 12/31/19 12/31/20 9/30/21 12/31/21 Residential CRE C&I PPP Mortgage Warehouse Lending Lending Subs Non-owner Occupied 77% Multi- family 20% Construction and Land 3% Commercial and Industrial 68% Owner Occupied 28% SBA PPP 4% Pinnacle 57% Bridge - Franchise 21% Bridge - Equipment 22%30 Yr Fixed 25% 15 & 20 Year Fixed 13% 10/1 ARM 13% 5/1 & 7/1 ARM 24% Formerly Covered 1% Govt Insured 24%

 
Allowance for Credit Losses

 
CECL Methodology 10 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 3.9% for Q1 2022, steadily declining to 3.5% through end of 2022. • Annualized growth in GDP at 5.4% for Q1 2022, normalizing to an average of 3.5% • VIX trending at stabilized levels through the forecast horizon. • S&P 500 averaging 4,300 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 – Current Quarter 11 ACL 9/30/21 ACL 12/31/21 Net Portfolio Migration Portfolio and Assumption Changes Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 0.70% 0.53% • Risk rating migration • Changes in specific reserves • New loans • Exits/runoff • Portfolio seasoning • Changes in borrower financial condition • Portfolio composition changes • Current market adjustment • Changes to forward path of economic forecast • Additional qualitative overlay related to economic uncertainty re: virus variants, fiscal and monetary policy • Majority related to one loan

 
Drivers of Change in the ACL – Fiscal 2021 12 ACL 12/31/20 ACL 12/31/21 Net Portfolio Migration Portfolio and Assumption Changes Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 1.08% 0.53% • Risk rating migration • Changes in specific reserves • Changes in underlying assumptions • New loans • Exits/runoff • Portfolio seasoning • Changes in borrower financial condition • Changes in portfolio composition • Resi loans exiting deferral • Current market adjustment • Changes to forward path of economic forecast

 
Allocation of the ACL 13 ($ in millions) (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $46.1 million, $49.1 million, and $51.3 million or 0.19%, 0.22%, and 0.22%, of total loans and 0.13%, 0.14%, and 0.15% of total assets, at December 30, 2021, September 30, 2021, and December 31, 2020. (2) ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.62%, 0.81%, and 1.26% at December 31, 2021, September 30, 2021, and December 31, 2020, respectively. See section entitled “Non-GAAP Financial Measures” on page 33. (3) Annualized for the period ended September 30, 2021. Balance % of Loans Balance % of Loans Balance % of Loans Residential and other consumer 18.7$ 0.29% 9.5$ 0.12% 9.2$ 0.11% Commercial: Commercial real estate 104.6 1.52% 30.6 0.52% 28.8 0.51% Commercial and industrial 91.0 1.07% 101.6 1.37% 68.0 0.84% Pinnacle 0.3 0.03% 0.2 0.02% 0.2 0.02% Franchise finance 36.3 6.61% 13.6 3.43% 16.7 4.90% Equipment finance 6.4 1.34% 4.1 1.09% 3.6 1.00% Total commercial 238.6 1.36% 150.1 1.00% 117.3 0.76% Allowance for credit losses(2) 257.3$ 1.08% 159.6$ 0.70% 126.5$ 0.53% December 31, 2020 December 31, 2021September 30, 2021 Asset Quality Ratios December 31, 2020 September 30, 2021 December 31, 2021 Non-performing loans to total loans (1) 1.02% 1.21% 0.87% Non-performing assets to total assets (1) 0.71% 0.80% 0.58% Allowance for credit losses to non-performing loans (1) 105.26% 57.69% 61.41% Net charge-offs to average loans (3) 0.26% 0.19% 0.29%

 
Loan Portfolio and Credit

 
Loan Portfolio – Geographic Distribution At December 31, 2021 Commercial (1) Residential CRE (1) Includes PPP, MWL, BFG and Pinnacle FL 37% NY Tri-State Area 23% Other 40% 15 CA 33% FL 8% NY 20% Other 39% FL 58% NY Tri-State Area 33% Other 9%

 
16 Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio At December 31, 2021 ($ in millions) • Includes $1.9 billion of owner- occupied real estate • Some key observations: • Educational services – well established private colleges, universities and high schools • Transportation and warehousing – cruise lines, aviation authorities, logistics • Health care – larger physician practice management companies, HMO’s, mental health & substance abuse; no small practices • Arts and entertainment – stadiums, professional sports teams, gaming • Accommodation and food services – time share, direct food services businesses and concessionaires (1) Excludes PPP loans Industry Balance(1) Commitment % of Portfolio Finance and Insurance 1,155$ 2,015$ 17.1% Educational Services 644 700 9.6% Wholesale Trade 629 949 9.3% Transportation and Warehousing 480 562 7.1% Health Care and Social Assistance 462 650 6.9% Information 436 622 6.5% Manufacturing 433 598 6.4% Real Estate and Rental and Leasing 365 601 5.4% Utilities 300 426 4.5% Construction 264 428 3.9% Retail Trade 263 322 3.9% Professional, Scientific, and Technical Services 255 352 3.8% Other Services (except Public Administration) 247 312 3.7% Public Administration 199 214 3.0% Accommodation and Food Services 189 240 2.8% Arts, Entertainment, and Recreation 171 196 2.5% Administrative and Support and Waste Management 170 225 2.5% Other 73 92 1.1% 6,735$ 9,504$ 100.0%

 
Loan Portfolio – Commercial Real Estate by Property Type At December 31, 2021 Property Type Balance FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Non- Performing Office 1,810$ 60% 25% 15% 2.72 64.1% 1$ Multifamily 1,224 42% 53% 5% 2.09 59.2% 11 Retail 1,075 56% 35% 9% 1.75 70.2% 18 Warehouse/Industrial 856 64% 24% 12% 2.41 57.6% - Hotel 547 82% 10% 8% 1.54 60.0% 18 Other 190 55% 37% 8% 2.47 57.2% 7 5,702$ 58% 33% 9% 2.23 62.6% 55$ • Commercial real estate loans are secured by income-producing, non-owner occupied properties, typically with well capitalized middle market sponsors • All non-performing hotel loans are in the SBA portfolio. • NY commercial real estate portfolio contains $122 million of mixed-used properties; $57 million included in the table above in multi-family, $46 million in retail and $19 million in office. ($ in millions) 17

 
18 Loan Portfolio – Deferrals and Modifications At December 31, 2021 ($ in millions) • Loans subject to COVID related deferral or modification under the CARES Act totaled $205 million or 1% of the total loan portfolio at December 31, 2021. $11 million of these loans, all residential, were under short-term deferral at December 31. • Commercial CARES Act modifications are most often 9 to 12- month interest only periods. • $509 million in commercial loans have rolled off of CARES Act modification. 100% of them have paid off or resumed regular payments. Balance % of loans Balance % of loans Residential -excluding government insured 33$ (1) 1% 479$ 96% 21$ 4% CRE by Property Type: Retail -$ - 19$ 100% -$ - Hotel 15 3% 329 100% - - Office - - 45 100% - - Multifamily 7 1% 16 100% - - Industrial - - - - - - Other - - - - - - Total CRE 22$ 0% 409$ 100% -$ - C&I - Industry: Accomm. and Food Services 31$ 16% -$ - -$ - Retail Trade 31 12% 3 100% - - Manufacturing 23 5% 10 100% - - Other 37 7% 62 100% - - Total C&I 122$ 2% 75$ 100% -$ - BFG - Franchise 28$ 8% 25$ 100% -$ - Total Commercial 172$ 1% 509$ 100% -$ - Total 205$ 1% 988$ 98% 21$ 2% 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 December 31, 2021 % of Portfolio (1) Includes $22 million in residential loans modified under the CARES act that are continuing to make payments.

 
Loan Portfolio – Retail At December 31, 2021 ($ in millions) Retail - Commercial Real Estate • No significant mall or “big box” exposure Retail – Commercial & Industrial 19 Property Type Balance Short-Term Deferral or CARES Modification Non-Performing Loans Special Mention Classified Retail - Anchored 598$ -$ 9$ -$ 40$ Retail - Unanchored 437 - 9 - 114 Construction to Perm 4 - - - - Gas Station 21 - - - - Restaurant 15 - - - 4 1,075$ -$ 18$ -$ 158$ 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$ 75$ 76$ -$ 1$ -$ 1$ Health and Personal Care Stores 13 6 19 12 - - 11 Furniture Stores - 24 24 - - - - Vending Machine Operators 19 - 19 19 - - 19 Specialty Food Stores 1 5 6 - 2 - 2 Grocery Stores 1 12 13 - - - 1 Automobile Dealers 7 4 11 - - - - Clothing Stores 1 10 11 - - - 3 Florists 10 - 10 - - - - Other 31 43 74 - 3 1 7 84$ 179$ 263$ 31$ 6$ 1$ 44$

 
Loan Portfolio – BFG Franchise Finance At December 31, 2021 ($ in millions) Portfolio Breakdown by Concept Portfolio Breakdown by Geography CA 24% TX 10% UT 7% GA 7% CO 7% Other 45% 20 Balance % of BFG Franchise Short-Term Deferral or CARES Modification Non-Performing Loans Special Mention Classified Restaurant Concepts: Burger King 51$ 14% -$ 20$ -$ 20$ Dunkin Donuts 18 5% - 3 - 14 Ram Restaurant and Brewery 13 4% 13 - - 13 Little Caesars 13 4% - 3 - 3 Jimmy John's 13 4% - - - - Other 75 22% 13 5 - 11 183$ 53% 26$ 31$ -$ 61$ Non-Restaurant Concepts Planet Fitness 95$ 28% -$ -$ -$ 10$ Orange Theory Fitness 40 12% 2 2 - 39 Other 24 7% - - - 4 159$ 47% 2$ 2$ -$ 53$

 
Loan Portfolio – Hotel At December 31, 2021 ($ in millions) • 82% of our exposure is in Florida, followed by 10% in New York • Includes $48.6 million in SBA loans • All hotel properties in FL and NY remain open • Decline of $67 million of hotel CARES Act modifications during Q4 Exposure by Flag Marriott $138 25% Independent $94 17% Others $149 27% Hilton $85 16% IHG $44 8% Sheraton $37 7% Total Portfolio: $547 million 21

 
Credit Quality – Residential At December 31, 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 9% 720-759 19% >759 72% 60% or less 37% 61% - 70% 26% 71% - 80% 36% More than 80% 1% Prior 22% 2017 5% 2018 4% 2019 6% 2020 17% 2021 46% 22

 
Asset Quality Metrics Non-performing Loans to Total Loans Non-performing Assets to Total Assets Net Charge-offs to Average Loans(1) (1) YTD net charge-offs, annualized at September 30, 2021. 0.88% 1.02% 1.21% 0.87% 0.68% 0.80% 0.99% 0.68% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 9/30/21 12/31/21 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 0.63% 0.71% 0.80% 0.58% 0.49% 0.56% 0.66% 0.45% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 9/30/21 12/31/21 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 23 0.05% 0.26% 0.19% 0.29% 0.00% 0.20% 0.40% 0.60% 12/31/19 12/31/20 9/30/21 12/31/2021

 
Non-Performing Loans by Portfolio Segment ($ in millions) (1) Includes the guaranteed portion of non-accrual SBA loans totaling $46.1 million, $49.1 million, $51.3 million, and $45.7 million at December 31, 2021, September 30, 2021, December 31, 2020, and December 31, 2019, respectively. $19 $29 $33 $29 $18 $36 $24 $19 $6 $24 $11 $11 $65 $43 $113 $58 $21 $14 $45 $32 $33 $62 $67 $64 $56 $205 $244 $277 $206 12/31/19 12/31/20 9/30/21 12/31/21 Residential and Other Consumer CRE Multifamily C&I Equipment Franchise SBA(1) 24

 
Criticized and Classified Loans ($ in millions) Commercial Real Estate Commercial & Industrial (1) Franchise Finance(3) Equipment Finance SBA(2) (1) Substandard non-accruing and doubtful includes $27.8 million and $16.4 million of loans rated doubtful at December 31, 2021 and September 30, 2021, respectively. (2) Includes the guaranteed portion of non-accrual SBA loans totaling $46.1 million, $49.1 million, $51.3 million, $45.7 million, at December 31, 2021, September 30, 2021, December 31, 2020, and December 31, 2019, respectively. (3) Substandard non-accruing and doubtful includes $20.0 million of loans rated doubtful at December 31, 2021 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 9/30/21 12/31/21 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 9/30/21 12/31/21 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 9/30/21 12/31/21 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 9/30/21 12/31/21 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 9/30/21 12/31/21 25

 
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 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 26

 
Criticized and Classified – BFG Franchise Finance ($ in millions) Restaurant Concepts(1) Fitness Concepts Other $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 9/30/21 12/31/21 $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 9/30/21 12/31/21 $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 9/30/21 12/31/21 27 (1) Substandard non-accruing and doubtful includes $20.0 million of loans rated doubtful at December 31, 2021

 
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 9/30/21 12/31/21 $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 9/30/21 12/31/21 $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 9/30/21 12/31/21 28

 
Investment Portfolio

 
30 Investment Securities AFS ($ in thousands) Portfolio Composition Ratings Distribution Gov 33% AAA 58% AA 7% A 2% US Government and agency 33% Private label RMBS and CMOs 22% Private label CMBS 25% Residential real estate lease- backed securities 5% CLO 11% State Municipal Obligations 2% Other 2% Portfolio Net Unrealized Gain(Loss) Fair Value Net Unrealized Gain(Loss) Fair Value Net Unrealized Gain(Loss) Fair Value US Government and agency 24,682$ 3,025,775$ 6,921$ 3,336,363$ (3,939)$ 3,249,950$ Private label RMBS and CMOs 15,713 998,603 2,653 2,172,078 (10,716) 2,149,420 Private label CMBS 12,083 2,526,354 8,616 2,591,320 (680) 2,604,010 Residential real estate lease-backed securities 14,819 650,888 7,505 621,301 2,123 476,968 CLOs (8,450) 1,140,274 (1,773) 973,535 (931) 1,078,286 State and Municipal Obligations 21,966 235,709 17,486 225,404 16,559 222,277 Other 4,822 484,806 3,363 278,072 1,419 152,510 85,635$ 9,062,409$ 44,771$ 10,198,073$ 3,835$ 9,933,421$ December 31, 2020 December 31, 2021September 30, 2021

 
Non-GAAP Financial Measures

 
32 Non-GAAP Financial Measures Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at December 31, 2021 (in thousands except share and per share data): December 31, 2021 Total stockholders’ equity (GAAP) 3,037,761$ Less: goodwill 77,637 Tangible stockholders’ equity (non-GAAP) 2,960,124$ Common shares issued and outstanding 85,647,986 Book value per common share (GAAP) 35.47$ Tangible book value per common share (non-GAAP) 34.56$

 
33 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): December 31, 2021 September 30, 2021 December 31, 2020 Total loans (GAAP) 23,765,053$ 22,807,969$ 23,866,042$ Less: Government insured residential loans 2,023,221 1,913,497 1,419,074 Less: PPP loans 248,505 332,548 781,811 Less: MWL 1,092,133 877,006 1,259,408 Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) 20,401,194$ 19,684,918$ 20,405,749$ ACL 126,457$ 159,615$ 257,323$ ACL to total loans (GAAP) 0.53% 0.70% 1.08% ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) 0.62% 0.81% 1.26%