News Release

MIAMI LAKES, Fla.--(BUSINESS WIRE)--Jan. 29, 2013-- BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2012.

For the quarter ended December 31, 2012, the Company reported net income of $62.5 million, or $0.61 per diluted common share, as compared to $41.3 million, or $0.41 per diluted share, for the quarter ended December 31, 2011.

For the year ended December 31, 2012, the Company reported net income of $211.3 million, or $2.05 per diluted share, generating a return on average stockholders’ equity of 12.45% and a return on average assets of 1.71%. The Company reported net income of $63.2 million, or $0.62 per diluted share, for the year ended December 31, 2011. Results for 2011 reflected a previously disclosed one-time charge of $110.4 million, recorded in conjunction with the Company’s first quarter 2011 initial public offering (“IPO”), which was not deductible for income tax purposes.

John Kanas, Chairman, President and Chief Executive Officer, said, "Obviously we are pleased with our financial performance this past year. More importantly we are greatly encouraged by the growth of our franchise as we continue to gain market share in south Florida. Our upcoming expansion into New York combined with the anticipated continuation of improvement in the Florida economy underscores our optimism toward the future of BankUnited."

Performance Highlights

• New loans grew by $449.6 million during the fourth quarter of 2012, an annualized growth rate of 55%. For the year ended December 31, 2012, new loans increased by $2.0 billion to $3.7 billion. For both the fourth quarter and the year ended December 31, 2012, new loan growth outpaced the resolution of covered loans.
• Deposits totaled $8.5 billion at December 31, 2012 with demand deposits totaling $1.9 billion, or 22% of total deposits. For the year ended December 31, 2012, demand deposits grew by $630.8 million, or 52%.
• The net interest margin, calculated on a tax-equivalent basis, was 6.70% for the quarter ended December 31, 2012 compared to 6.54% for the quarter ended December 31, 2011 and 6.04% compared to 6.21% for the years ended December 31, 2012 and 2011, respectively. The margin for the fourth quarter of 2012 benefited from the sale of covered loans from a pool of acquired credit impaired (“ACI”) loans that has a zero carrying value, as discussed below.
• Similar to prior years, the Company sold covered loans in the fourth quarter of 2012. The aggregate price for the 2012 sales was approximately 39.6% of the unpaid principal balances (“UPB”) of loans sold, as compared to an average of 28.1% of UPB for the years 2009, 2010 and 2011. Since the proceeds of the sale of loans from the pool of ACI loans carried at zero are recorded as interest income, the Company’s fourth quarter margin benefited from the better pricing levels of the sale, and was higher than we previously projected.
• The fourth quarter loan sale also resulted in a loss of $29.3 million on the sale of loans from the remaining pools, with an offsetting gain of $30.8 million on the FDIC indemnification asset.
• During the fourth quarter, we sold investment securities with a fair value of $526.7 million, utilizing the proceeds to extinguish $520.0 million in Federal Home Loan Bank (“FHLB”) advances and terminate a related cash flow hedge, with a combined cost of borrowing of 3.46%. We realized a pre-tax gain on the sale of securities of $10.0 million and a combined pre-tax loss of $22.9 million on the extinguishment of the advances and termination of the hedge. This transaction is expected to have a positive effect on our net interest margin in 2013.
• The cost of deposits continues to trend downward. The cost of deposits was 0.73% for the fourth quarter of 2012 as compared to 0.78% for the third quarter of 2012 and 0.99% for the fourth quarter of 2011.
• We increased our quarterly dividend by 24% to $0.21 per share in the fourth quarter of 2012.
• Book value and tangible book value per common share grew to $18.45 and $17.71, respectively, at December 31, 2012.
• We opened three new Florida branches during the fourth quarter of 2012 and anticipate opening three branches in Manhattan in the first quarter of 2013.

Capital

BankUnited, Inc. continues to maintain a robust capital position. The Company and its banking subsidiaries exceed all regulatory guidelines required to be considered well capitalized. The Company’s capital ratios at December 31, 2012 were as follows:

Tier 1 leverage		13.2%
Tier 1 risk-based capital		33.6%
Total risk-based capital		34.9%

Loans

Loans, net of premiums, discounts and deferred fees and costs, increased to $5.6 billion at December 31, 2012 from $4.1 billion at December 31, 2011. New loans grew by $2.0 billion to $3.7 billion at December 31, 2012 from $1.7 billion at December 31, 2011. Covered loans declined to $1.9 billion at December 31, 2012 from $2.4 billion at December 31, 2011.

For the year ended December 31, 2012, new commercial loans, including commercial loans, commercial real estate loans and leases, grew $1.5 billion to $2.7 billion, primarily reflecting the Company’s continued expansion of market share in Florida. New residential loans grew by $459.2 million to $922.7 million during 2012, primarily as a result of the purchase of residential loans outside of Florida to diversify credit risk within the residential portfolio.

In the fourth quarter of 2012, new commercial loans grew by $319.7 million while the Company’s new residential portfolio grew by $114.1 million.

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

		New Loans				Total Loans
		December 31,		December 31,		December 31,		December 31,
		2012		2011		2012		2011
Single family residential and home equity		25.0%		27.0%		45.3%		60.2%
Commercial real estate		31.8%		26.2%		25.6%		19.4%
Commercial		42.3%		46.6%		28.5%		20.2%
Consumer		0.9%		0.2%		0.6%		0.2%
		100.0%		100.0%		100.0%		100.0%

Asset Quality

Asset quality remained strong. Credit risk continues to be limited, though to a declining extent, by the Loss Sharing Agreements with the FDIC. At December 31, 2012, covered loans represented 33% of the total loan portfolio, as compared to 59% at December 31, 2011.

The ratio of non-performing new loans to total new loans was 0.43% at December 31, 2012 and 0.17% at December 31, 2011. The ratio of total non-performing loans to total loans was 0.62% at December 31, 2012 as compared to 0.70% at December 31, 2011. At December 31, 2012, non-performing assets totaled $110.6 million, including $76.0 million of other real estate owned (“OREO”), as compared to $152.6 million, including $123.7 million of OREO, at December 31, 2011. At December 31, 2012, 85.47% of total non-performing assets, including all OREO, were covered assets.

For the quarters ended December 31, 2012 and 2011, the Company recorded provisions for (recoveries of) loan losses of $1.0 million and $4.0 million, respectively. Of these amounts, $(1.6) million and $(4.9) million, respectively, related to covered loans and $2.7 million and $8.9 million, respectively, related to new loans.

For the years ended December 31, 2012 and 2011, the Company recorded provisions for (recoveries of) loan losses of $18.9 million and $13.8 million, respectively. Of these amounts, $(0.5) million and $(7.7) million, respectively, related to covered loans, and $19.4 million and $21.5 million, respectively, related to new loans. The decrease in the provision related to new loans resulted primarily from a reduction in loss factors applied to the commercial portfolio.

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

The following table summarizes the activity in the allowance for loan and lease losses for the quarters and years ended December 31, 2012 and 2011 (in thousands):

			Three Months Ended December 31, 2012												Three Months Ended December 31, 2011
			ACI Loans			Non-ACI Loans			New Loans			Total			ACI Loans			Non-ACI Loans			New Loans			Total
Balance at beginning of period			$	9,922		$	10,865		$	39,629		$	60,416		$	22,132		$	14,933		$	17,993		$	55,058
	Provision			(698)			(942)			2,670			1,030			(3,015)			(1,872)			8,899			4,012
	Charge-offs			(1,205)			(519)			(1,235)			(2,959)			(2,785)			(5,444)			(2,573)			(10,802)
	Recoveries			-			470			164			634			-			125			9			134
Balance at end of period			$	8,019		$	9,874		$	41,228		$	59,121		$	16,332		$	7,742		$	24,328		$	48,402

			Year Ended December 31, 2012												Year Ended December 31, 2011
			ACI Loans			Non-ACI Loans			New Loans			Total			ACI Loans			Non-ACI Loans			New Loans			Total
Balance at beginning of period			$	16,332		$	7,742		$	24,328		$	48,402		$	39,925		$	12,284		$	6,151		$	58,360
	Provision			(4,347)			3,844			19,399			18,896			(11,278)			3,586			21,520			13,828
	Charge-offs			(3,966)			(3,591)			(2,929)			(10,486)			(13,527)			(8,489)			(3,367)			(25,383)
	Recoveries			-			1,879			430			2,309			1,212			361			24			1,597
Balance at end of period			$	8,019		$	9,874		$	41,228		$	59,121		$	16,332		$	7,742		$	24,328		$	48,402

Deposits

At December 31, 2012, deposits totaled $8.5 billion compared to $7.4 billion at December 31, 2011. Demand deposits, including non-interest bearing and interest bearing deposits, grew $630.8 million to $1.9 billion or 22% of total deposits at December 31, 2012 from $1.2 billion or 17% of total deposits at December 31, 2011. This growth was concentrated in commercial and small business accounts. The average cost of deposits was 0.73% for the quarter ended December 31, 2012 as compared to 0.99% for the quarter ended December 31, 2011 and 0.81% for the year ended December 31, 2012 as compared to 1.09% for the year ended December 31, 2011. The decrease in the average cost of deposits was primarily attributable to the continued growth in lower cost deposit products and a decline in market rates of interest. Excluding the impact of hedge accounting and accretion of fair value adjustments, the average cost of deposits was 0.68% and 0.76% for the quarter and year ended December 31, 2012.

Net interest income

Net interest income for the quarter ended December 31, 2012 grew to $174.6 million from $140.7 million for the quarter ended December 31, 2011. Net interest income for the year ended December 31, 2012 was $597.6 million as compared to $499.2 million for the year ended December 31, 2011.

The Company’s net interest margin, calculated on a tax-equivalent basis, was 6.70% for the quarter ended December 31, 2012 as compared to 6.54% for the quarter ended December 31, 2011. Significant factors impacting the trend in net interest margin for the fourth quarter of 2012 included:

• Higher than projected proceeds of $29.9 million from the sale of ACI loans from a pool with a carrying value of zero were recorded in interest income. The fourth quarter also benefited from an adjustment to accretion on non-ACI residential loans resulting from a change in estimated prepayment rates.
• Exclusive of the impact of proceeds from the loan sale, the tax-equivalent yield on loans declined by 3.83% for the quarter ended December 31, 2012 as compared to the quarter ended December 31, 2011, primarily because new loans originated at yields lower than those on the covered loan portfolio comprised a greater percentage of total loans.
• The tax-equivalent yield on investment securities declined to 2.78% for the quarter ended December 31, 2012 from 3.24% for the quarter ended December 31, 2011, reflecting the impact of lower prevailing market rates of interest.
• The average rate on interest-bearing liabilities declined to 1.17% for the quarter ended December 31, 2012 from 1.54% for the quarter ended December 31, 2011, primarily due to declining market interest rates.

The tax-equivalent net interest margin for the year ended December 31, 2012 was 6.04% as compared to 6.21% for the year ended December 31, 2011. The decline in net interest margin reflected lower yields on loans and investment securities, partially offset by a reduced cost of funds.

The Company’s net interest margin for the quarters and years ended December 31, 2012 and 2011 was also impacted by reclassifications from non-accretable difference to accretable yield on ACI loans. Non-accretable difference at acquisition represented the difference between the total contractual payments due and the cash flows expected to be received on these loans. The accretable yield on ACI loans represented the amount by which undiscounted expected future cash flows exceeded the carrying value of the loans. As the Company’s expected cash flows from ACI loans have increased since the FSB Acquisition (as defined below), the Company has reclassified amounts from non-accretable difference to accretable yield.

Changes in accretable yield on ACI loans for the years ended December 31, 2012 and 2011 were as follows (in thousands):

	Balance, December 31, 2010			$	1,833,974
		Reclassifications from non-accretable difference			135,933
		Accretion			(446,292)
	Balance, December 31, 2011				1,523,615
		Reclassifications from non-accretable difference			206,934
		Accretion			(444,483)
	Balance, December 31, 2012			$	1,286,066

Non-interest income

Non-interest income for the quarter ended December 31, 2012 was $5.5 million, as compared to $13.3 million for the quarter ended December 31, 2011. For the year ended December 31, 2012, non-interest income was $89.2 million as compared to $163.2 million for the year ended December 31, 2011.

Non-interest income for the quarter and year ended December 31, 2012 was impacted by lower accretion of discount on the FDIC indemnification asset of $0.8 million and $15.3 million, respectively, as compared to $10.7 million and $55.9 million, respectively, for the quarter and year ended December 31, 2011. As the expected cash flows from ACI loans have increased as discussed above, cash flows from the FDIC indemnification asset have decreased, resulting in lower accretion. We expect the rate of accretion on the FDIC indemnification asset to be negative beginning in the first quarter of 2013.

Income from resolution of covered assets, net was $11.4 million and $51.0 million, respectively, for the quarter and year ended December 31, 2012 compared to $11.7 million and $18.8 million, respectively, for the quarter and year ended December 31, 2011. This increase in income for the year ended December 31, 2012 resulted mainly from higher payoffs of ACI residential loans.

Loss on sale of covered loans, net was $29.3 million for each of the quarter and year ended December 31, 2012 compared to $70.4 million for each of the quarter and year ended December 31, 2011. The decrease in the amount of the loss was related to improved pricing and the effect of the sale of loans from the pool of ACI loans with a carrying value of zero. No loss was recorded related to the sale of loans from this pool. As discussed above, proceeds from the sale of loans in this pool were recorded in interest income. The carrying value of this pool was reduced to zero after the sale of covered loans in 2011.

Net gain (loss) on indemnification asset was $20.6 million and $(6.0) million, respectively, for the quarter and year ended December 31, 2012, as compared to $43.0 million and $79.8 million, respectively, for the quarter and year ended December 31, 2011. The primary factor impacting the decrease for the quarter ended December 31, 2012 as compared to the quarter ended December 31, 2011 was the decline in the loss on sale of covered loans. Other significant factors influencing the decline for the year ended December 31, 2012 as compared to the year ended December 31, 2011 included increased income from resolution of covered assets, net, reduced OREO impairment and more favorable gains (losses) on the sale of OREO as discussed further below.

In addition, as discussed above, the quarter ended December 31, 2012 included approximately $10.1 million of gains on the sale of investment securities, $14.2 million in losses on the extinguishment of FHLB advances and a loss of $8.7 million on the termination of a cash flow hedge.

Non-interest expense

Non-interest expense totaled $78.7 million for the quarter ended December 31, 2012 as compared to $75.8 million for the quarter ended December 31, 2011. For the year ended December 31, 2012, non-interest expense totaled $323.1 million as compared to $455.8 million for the year ended December 31, 2011. Non-interest expense for the year ended December 31, 2011 included a one-time compensation expense of $110.4 million recorded in conjunction with the Company’s IPO.

Employee compensation and benefits (excluding the one-time charge of $110.4 million discussed above) and occupancy and equipment expense increased for 2012 as compared to 2011, reflecting the Company’s continued growth and the opening and refurbishment of branches.

For the quarter and year ended December 31, 2012, the aggregate of foreclosure expense, OREO expense, gain (loss) on sale of OREO and impairment of OREO totaled $4.7 million and $26.0 million, respectively, as compared to $7.5 million and $80.1 million, respectively, for the quarter and year ended December 31, 2011. The sharply lower level of expense for the quarter and year ended December 31, 2012 reflected lower levels of OREO and foreclosure activity as well as improving real estate market trends as compared to the prior year.

Earnings Conference Call and Presentation

A conference call to discuss the fourth quarter results will be held at 9:00 a.m. ET on Tuesday, January 29, 2013 with Chairman, President and Chief Executive Officer, John A. Kanas, and Chief Financial Officer, Douglas J. Pauls.

The earnings release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. The call may be accessed via a live Internet webcast at www.bankunited.com or through a dial in telephone number at (888) 679-8038 (domestic) or (617) 213-4850 (international). The name of the call is BankUnited, and the passcode for the call is 89454096. A replay of the call will be available from 11:00 a.m. EDT on January 29th through 11:59 p.m. EDT on February 5th by calling (888) 286-8010 (domestic) or (617) 801-6888 (international). The passcode for the replay is 48177553. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.

About BankUnited, Inc. and the FSB Acquisition

BankUnited, Inc. is a bank holding company with three wholly-owned subsidiaries: BankUnited, N.A., which is one of the largest independent depository institutions headquartered in Florida by assets, BankUnited Investment Services, Inc., a Florida insurance agency which provides wealth management products and financial planning services, and Herald National Bank, a commercial bank servicing the New York City market. BankUnited, N.A., is a national bank headquartered in Miami Lakes, Florida with $11.7 billion of assets, more than 1,360 professionals and 98 branches in 15 counties at December 31, 2012.

The Company was organized by a management team led by its Chairman, President and Chief Executive Officer, John A. Kanas, on April 28, 2009. On May 21, 2009, BankUnited acquired substantially all of the assets and assumed all of the non-brokered deposits and substantially all other liabilities of BankUnited, FSB from the FDIC, in a transaction referred to as the FSB Acquisition. Concurrently with the FSB Acquisition, BankUnited entered into two loss sharing agreements, or the Loss Sharing Agreements, which covered certain legacy assets, including the entire legacy loan portfolio and OREO, and certain purchased investment securities. Assets covered by the Loss Sharing Agreements are referred to as “covered assets” (or, in certain cases, “covered loans”). The Loss Sharing Agreements do not apply to subsequently acquired, purchased or originated assets. Pursuant to the terms of the Loss Sharing Agreements, the covered assets are subject to a stated loss threshold whereby the FDIC will reimburse BankUnited for 80% of losses, including certain interest and expenses, up to the $4.0 billion stated threshold and 95% of losses in excess of the $4.0 billion stated threshold. The Company’s current estimate of cumulative losses on the covered assets is approximately $4.6 billion. The Company has received $2.3 billion from the FDIC in reimbursements under the Loss Sharing Agreements for claims filed for incurred losses as of December 31, 2012.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 available at the SEC’s website (www.sec.gov).

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data)
				December 31,			December 31,
				2012			2011
ASSETS
Cash and due from banks:
	Non-interest bearing			$	61,088		$	39,894
	Interest bearing				21,507			13,160
Interest bearing deposits at Federal Reserve Bank					408,827			247,488
Federal funds sold					3,931			3,200
	Cash and cash equivalents				495,353			303,742
Investment securities available for sale, at fair value
	(including covered securities of $226,505 and $232,194)				4,172,412			4,181,977
Non-marketable equity securities					133,060			147,055
Loans held for sale					2,129			3,952
Loans (including covered loans of $1,864,375 and $2,422,811)					5,571,739			4,137,058
	Allowance for loan and lease losses				(59,121)			(48,402)
		Loans, net			5,512,618			4,088,656
FDIC indemnification asset					1,457,570			2,049,151
Bank owned life insurance					207,069			204,077
Other real estate owned, covered by loss sharing agreements					76,022			123,737
Deferred tax asset, net					62,274			19,485
Goodwill and other intangible assets					69,768			68,667
Other assets					187,678			131,539
		Total assets		$	12,375,953		$	11,322,038
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
	Demand deposits:
		Non-interest bearing		$	1,312,779		$	770,846
		Interest bearing			542,561			453,666
	Savings and money market				4,042,022			3,553,018
	Time				2,640,711			2,587,184
		Total deposits			8,538,073			7,364,714
	Short-term borrowings				8,175			206
	Federal Home Loan Bank advances				1,916,919			2,236,131
	Income taxes payable				-			53,171
	Other liabilities				106,106			132,536
		Total liabilities			10,569,273			9,786,758
Commitments and contingencies
Stockholders' equity:
	Common stock, par value $0.01 per share, 400,000,000 shares authorized;
		95,006,729 and 97,700,829 shares issued and outstanding			950			977
	Preferred stock, par value $0.01 per share, 100,000,000 shares authorized;
		5,415,794 shares of Series A issued and outstanding at December 31, 2012			54			-
	Paid-in capital				1,308,315			1,240,068
	Retained earnings				413,385			276,216
	Accumulated other comprehensive income				83,976			18,019
		Total stockholders' equity			1,806,680			1,535,280
		Total liabilities and stockholders' equity		$	12,375,953		$	11,322,038

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
				Three Months Ended December 31,						Years Ended December 31,
				2012			2011			2012			2011
Interest income:
	Loans			$	168,770		$	$142,185		$	584,727		$	512,728
	Investment securities available for sale				31,951			31,856			131,198			122,626
	Other				1,625			598			4,931			2,743
		Total interest income			202,346			174,639			720,856			638,097
Interest expense:
	Deposits				15,712			18,006			66,178			75,773
	Borrowings				12,070			15,920			57,091			63,164
		Total interest expense			27,782			33,926			123,269			138,937
		Net interest income before provision for (recovery of) loan losses			174,564			140,713			597,587			499,160
	Provision for (recovery of) loan losses (including $(1,640),
		$(4,887), $(503) and $(7,692) for covered loans)			1,030			4,012			18,896			13,828
		Net interest income after provision for (recovery of) loan losses			173,534			136,701			578,691			485,332
Non-interest income:
	Accretion of discount on FDIC indemnification asset				793			10,654			15,306			55,901
	Income from resolution of covered assets, net				11,414			11,708			51,016			18,776
	Net gain (loss) on indemnification asset				20,572			42,955			(6,030)			79,812
	FDIC reimbursement of costs of resolution of covered assets				6,154			6,928			19,569			31,528
	Service charges and fees				3,276			2,733			12,716			11,128
	Loss on sale of loans, net (including loss related to covered
		loans of $29,333, $70,366, $29,270 and $70,366)			(29,355)			(70,117)			(28,657)			(69,714)
	Gain (loss) on sale of investment securities available for sale, net				10,108			(79)			17,039			1,136
	Loss on extinguishment of debt				(14,175)			-			(14,175)			-
	Loss on termination of interest rate swap				(8,701)			-			(8,701)			-
	Mortgage insurance income				862			4,676			9,772			16,904
	Other non-interest income				4,551			3,884			21,392			17,746
		Total non-interest income			5,499			13,342			89,247			163,217
Non-interest expense:
	Employee compensation and benefits (including $110.4 million in equity
		based compensation recorded in conjunction with the IPO for 2011)			40,717			40,971			173,261			272,991
	Occupancy and equipment				15,689			10,405			54,465			36,680
	Impairment of other real estate owned				1,946			2,746			9,926			24,569
	(Gain) loss on sale of other real estate owned				(2,665)			(3,763)			(4,164)			23,576
	Other real estate owned expense				2,431			3,881			7,624			13,001
	Foreclosure expense				2,973			4,590			12,644			18,976
	Deposit insurance expense				2,112			1,828			7,248			8,480
	Professional fees				4,016			5,126			15,468			17,330
	Telecommunications and data processing				2,732			2,266			12,462			12,041
	Other non-interest expense				8,751			7,775			34,139			28,161
		Total non-interest expense			78,702			75,825			323,073			455,805
Income before income taxes					100,331			74,218			344,865			192,744
Provision for income taxes					37,829			32,938			133,605			129,576
		Net income			62,502			41,280			211,260			63,168
Preferred stock dividends					1,137			-			3,899			-
		Net income available to common stockholders		$	61,365		$	41,280		$	207,361		$	63,168
Earnings per common share, basic				$	0.61		$	0.41		$	2.05		$	0.63
Earnings per common share, diluted				$	0.61		$	0.41		$	2.05		$	0.62
Cash dividends declared per common share				$	0.21		$	0.14		$	0.72		$	0.56

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
			Three Months Ended December 31,
			2012									2011
			Average						Yield/			Average						Yield/
			Balance			Interest (1)			Rate (2)			Balance			Interest (1)			Rate (2)
Assets:
Interest earning assets:
Loans			$	5,334,961		$	169,668			12.70%		$	3,982,354		$	142,555			14.29%
Investment securities available for sale				4,698,454			32,704			2.78%			4,113,223			33,307			3.24%
Other interest earning assets				481,299			1,625			1.35%			617,501			598			0.38%
	Total interest earning assets			10,514,714			203,997			7.75%			8,713,078			176,460			8.09%
Allowance for loan and lease losses				(62,189)									(53,811)
Non-interest earning assets				2,323,689									2,597,226
	Total assets		$	12,776,214								$	11,256,493
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	535,240			749			0.56%		$	422,193			685			0.64%
Savings and money market deposits				4,038,706			5,303			0.52%			3,535,825			7,178			0.81%
Time deposits				2,664,771			9,660			1.44%			2,534,917			10,143			1.59%
	Total interest bearing deposits			7,238,717			15,712			0.86%			6,492,935			18,006			1.10%
Borrowings:
FHLB advances				2,222,656			12,064			2.16%			2,238,982			15,919			2.82%
Short-term borrowings				5,461			6			0.46%			328			1			0.49%
	Total interest bearing liabilities			9,466,834			27,782			1.17%			8,732,245			33,926			1.54%
Non-interest bearing demand deposits				1,276,043									708,490
Other non-interest bearing liabilities				231,276									299,902
	Total liabilities			10,974,153									9,740,637
Stockholders' equity				1,802,061									1,515,856
	Total liabilities and stockholders' equity		$	12,776,214								$	11,256,493
Net interest income						$	176,215								$	142,534
Interest rate spread										6.58%									6.55%
Net interest margin										6.70%									6.54%
(1) On a tax-equivalent basis where applicable
(2) Annualized

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
			Years Ended December 31,
			2012									2011
			Average						Yield/			Average						Yield/
			Balance			Interest (1)			Rate			Balance			Interest (1)			Rate
Assets:
Interest earning assets:
Loans			$	4,887,209		$	587,571			12.02%		$	3,848,837		$	513,539			13.34%
Investment securities available for sale				4,611,379			135,833			2.95%			3,654,137			127,630			3.49%
Other interest earning assets				522,184			4,931			0.94%			628,782			2,743			0.44%
	Total interest earning assets			10,020,772			728,335			7.27%			8,131,756			643,912			7.92%
Allowance for loan and lease losses				(56,463)									(57,462)
Non-interest earning assets				2,387,719									2,866,486
	Total assets		$	12,352,028								$	10,940,780
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	504,614			3,155			0.63%		$	382,329			2,499			0.65%
Savings and money market deposits				3,912,444			24,093			0.62%			3,366,466			29,026			0.86%
Time deposits				2,632,451			38,930			1.48%			2,585,201			44,248			1.71%
	Total interest bearing deposits			7,049,509			66,178			0.94%			6,333,996			75,773			1.20%
Borrowings:
FHLB advances				2,227,910			57,040			2.56%			2,246,068			63,158			2.81%
Short-term borrowings				12,435			51			0.41%			1,333			6			0.48%
	Total interest bearing liabilities			9,289,854			123,269			1.33%			8,581,397			138,937			1.62%
Non-interest bearing demand deposits				1,099,448									622,377
Other non-interest bearing liabilities				265,399									282,416
	Total liabilities			10,654,701									9,486,190
Stockholders' equity				1,697,327									1,454,590
	Total liabilities and stockholders' equity		$	12,352,028								$	10,940,780
Net interest income						$	605,066								$	504,975
Interest rate spread										5.94%									6.30%
Net interest margin										6.04%									6.21%
(1) On a tax-equivalent basis where applicable

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share amounts)
			Three Months Ended						Years Ended
			December 31,						December 31,
			2012			2011			2012			2011
Basic earnings per common share:
Numerator:
Net income			$	62,502		$	41,280		$	211,260		$	63,168
Preferred stock dividends				(1,137)			-			(3,899)			-
	Net income available to common stockholders			61,365			41,280			207,361			63,168
Distributed and undistributed earnings allocated to participating securities				(4,608)			(2,129)			(15,081)			(3,449)
	Income allocated to common stockholders for basic earnings per common share		$	56,757		$	39,151		$	192,280		$	59,719
Denominator:
Weighted average common shares outstanding				94,597,067			96,033,910			94,791,484			96,875,386
Less average unvested stock awards				(997,655)			(1,323,425)			(1,137,210)			(1,421,694)
	Weighted average shares for basic earnings per common share			93,599,412			94,710,485			93,654,274			95,453,692
Basic earnings per common share			$	0.61		$	0.41		$	2.05		$	0.63
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share			$	56,757		$	39,151		$	192,280			59,719
Adjustment for earnings reallocated from participating securities				6			2			20			-
	Income used in calculating diluted earnings per common share		$	56,763		$	39,153		$	192,300		$	59,719
Denominator:
Average shares for basic earnings per common share				93,599,412			94,710,485			93,654,274			95,453,692
Dilutive effect of stock options				162,880			121,212			174,509			151,585
	Weighted average shares for diluted earnings per common share			93,762,292			94,831,697			93,828,783			95,605,277
Diluted earnings per common share			$	0.61		$	0.41		$	2.05		$	0.62

BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
				Three Months Ended December 31,				Years Ended December 31,
Financial ratios				2012 (4)		2011 (4)		2012		2011
		Return on average assets		1.95%		1.45%		1.71%		0.58%
		Return on average stockholders' equity		13.80%		10.80%		12.45%		4.34%
		Net interest margin		6.70%		6.54%		6.04%		6.21%
Capital ratios				December 31, 2012		December 31, 2011
		Tier 1 risk-based capital		33.60%		41.62%
		Total risk-based capital		34.88%		42.89%
		Tier 1 leverage		13.16%		13.06%
Asset quality ratios				December 31, 2012		December 31, 2011
		Non-performing loans to total loans (1) (3)		0.62%		0.70%
		Non-performing assets to total assets (2)		0.89%		1.35%
		Allowance for loan losses to total loans (3)		1.06%		1.17%
		Allowance for loan losses to non-performing loans (1)		171.21%		167.59%
		Net charge-offs to average loans		0.17%		0.62%
(1)		We define non-performing loans to include nonaccrual loans, loans, other than ACI loans, that are past due 90 days or more and still accruing and certain loans modified in troubled debt restructurings. Contractually delinquent ACI loans on which interest continues to be accreted are excluded from non-performing loans.
(2)		Non-performing assets include non-performing loans and other real estate owned.
(3)		Total loans is net of unearned discounts, premiums and deferred fees and costs.
(4)		Annualized

Source: BankUnited, Inc.

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