News Release

MIAMI LAKES, Fla.--(BUSINESS WIRE)--Oct. 22, 2013-- BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the third quarter of 2013.

For the quarter ended September 30, 2013, the Company reported net income of $54.3 million, or $0.52 per diluted share, as compared to $49.6 million, or $0.48 per diluted share, for the quarter ended September 30, 2012.

For the nine months ended September 30, 2013, the Company reported net income of $156.5 million, or $1.51 per diluted share, generating an annualized return on average stockholders’ equity of 11.27% and an annualized return on average assets of 1.61%. The Company reported net income of $148.8 million, or $1.44 per diluted share, for the nine months ended September 30, 2012.

John Kanas, Chairman, President and Chief Executive Officer, said, "This quarter was marked by compelling growth in both of our primary markets. We are particularly pleased with the increased momentum of our deposit growth."

Performance Highlights

• New loans grew by $1.1 billion during the third quarter of 2013. For the nine months ended September 30, 2013, new loans increased by $2.5 billion to $6.2 billion.
• Total deposits increased by $817 million for the quarter ended September 30, 2013 to $9.8 billion, reflecting growth across all deposit categories. For the nine months ended September 30, 2013, total deposits grew by $1.3 billion.
• The net interest margin, calculated on a tax-equivalent basis, was 5.70% for the quarter ended September 30, 2013.
• Earnings for the quarter ended September 30, 2013 benefited from a reduction in the effective income tax rate, primarily due to a $3.6 million release of reserves for uncertain tax liabilities.
• Book value and tangible book value per common share were $18.70 and $18.01, respectively, at September 30, 2013.

Capital

The Company and its banking subsidiary continue to exceed all regulatory guidelines required to be considered well capitalized. The Company’s regulatory capital ratios at September 30, 2013 were as follows:

Tier 1 leverage 13.1%

Tier 1 risk-based capital 24.1%

Total risk-based capital 25.0%

Loans and Leases

Loans, net of premiums, discounts and deferred fees and costs, increased to $7.8 billion at September 30, 2013 from $5.6 billion at December 31, 2012. New loans grew by $2.5 billion to $6.2 billion at September 30, 2013 from $3.7 billion at December 31, 2012. Covered loans declined to $1.6 billion at September 30, 2013 from $1.9 billion at December 31, 2012.

For the quarter ended September 30, 2013, new commercial loans, including commercial loans, commercial real estate loans and leases, grew $762 million to $4.5 billion, reflecting the continued success of lending operations in New York, further expansion of market share in Florida and growth of the lending subsidiaries. New residential loans grew by $270 million to $1.6 billion during the third quarter of 2013, primarily as a result of the continuation of the Company’s residential loan purchase program.

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

		New Loans				Total Loans
		September 30,		December 31,		September 30,		December 31,
		2013		2012		2013		2012
Single family residential and home equity		25.9%		25.0%		38.0%		45.3%
Commercial real estate		35.0%		31.8%		30.6%		25.6%
Commercial		36.7%		42.3%		29.5%		28.5%
Consumer		2.4%		0.9%		1.9%		0.6%
		100.0%		100.0%		100.0%		100.0%

The Company’s portfolio of equipment under operating lease grew by $99.7 million for the quarter ended September 30, 2013 to $185.0 million.

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 September 30, 2013, covered loans represented 19.9% of the total loan portfolio, as compared to 33.5% at December 31, 2012.

The ratio of non-performing new loans to total new loans was 0.39% at September 30, 2013 and 0.43% at December 31, 2012. The ratio of total non-performing loans to total loans was 0.50% at September 30, 2013 as compared to 0.62% at December 31, 2012. At September 30, 2013, non-performing assets totaled $87.2 million, including $48.5 million of other real estate owned (“OREO”), as compared to $110.6 million, including $76.0 million of OREO, at December 31, 2012. At September 30, 2013, 71% of total non-performing assets were covered assets.

For the quarters ended September 30, 2013 and 2012, the Company recorded provisions for loan losses of $2.6 million and $6.4 million, respectively. Of these amounts, $(2.8) million and $1.0 million, respectively, related to provisions for (recoveries of) covered loans, and $5.4 million and $5.4 million, respectively, related to provisions for new loans.

For the nine months ended September 30, 2013 and 2012, the Company recorded provisions for loan losses of $19.5 million and $17.9 million, respectively. Of these amounts, $(1.0) million and $1.1 million, respectively, related to provisions for (recoveries of) covered loans, and $20.4 million and $16.7 million, respectively, related to provisions for new loans.

The provisions related to new loans reflect growth in the new loan portfolio offset in part by reductions in general loss factors. For the nine months ended September 30, 2013, the provision for new loans was also impacted by specific reserves recognized on impaired loans, particularly related to one commercial relationship.

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

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

			Three Months Ended September 30, 2013																Three Months Ended September 30, 2012
			ACI Loans				Non-ACI Loans				New Loans				Total				ACI Loans				Non-ACI Loans				New Loans				Total
Balance at beginning of period			$	4,304			$	13,908			$	40,219			$	58,431			$	11,085			$	9,878			$	34,672			$	55,635
	Provision			(842	)			(1,995	)			5,441				2,604				(867	)			1,888				5,353				6,374
	Charge-offs			(117	)			(1,317	)			(586	)			(2,020	)			(296	)			(1,032	)			(578	)			(1,906	)
	Recoveries			-				147				457				604				-				131				182				313
Balance at end of period			$	3,345			$	10,743			$	45,531			$	59,619			$	9,922			$	10,865			$	39,629			$	60,416

			Nine Months Ended September 30, 2013																Nine Months Ended September 30, 2012
			ACI Loans				Non-ACI Loans				New Loans				Total				ACI Loans				Non-ACI Loans				New Loans				Total
Balance at beginning of period			$	8,019			$	9,874			$	41,228			$	59,121			$	16,332			$	7,742			$	24,328			$	48,402
	Provision			(2,440	)			1,452				20,440				19,452				(3,649	)			4,786				16,729				17,866
	Charge-offs			(2,234	)			(3,223	)			(16,837	)			(22,294	)			(2,761	)			(3,072	)			(1,694	)			(7,527	)
	Recoveries			-				2,640				700				3,340				-				1,409				266				1,675
Balance at end of period			$	3,345			$	10,743			$	45,531			$	59,619			$	9,922			$	10,865			$	39,629			$	60,416

Deposits

At September 30, 2013, deposits totaled $9.8 billion compared to $8.5 billion at December 31, 2012. Demand deposits, including non-interest bearing and interest bearing deposits, comprised 23% of total deposits at September 30, 2013. The average cost of deposits was 0.64% for the quarter ended September 30, 2013 as compared to 0.78% for the quarter ended September 30, 2012 and 0.66% for the nine months ended September 30, 2013 as compared to 0.84% for the nine months ended September 30, 2012. The decrease in the average cost of deposits was attributable to both the growth in non-interest bearing deposits as a percentage of average total deposits and a decline in market rates of interest. Excluding the impact of hedge accounting and accretion of fair value adjustments, the average cost of deposits was 0.59% and 0.61%, respectively, for the three and nine months ended September 30, 2013.

Net interest income

Net interest income for the quarter ended September 30, 2013 grew to $164.1 million from $139.4 million for the quarter ended September 30, 2012. Net interest income for the nine months ended September 30, 2013 was $482.0 million as compared to $423.0 million for the nine months ended September 30, 2012.

The Company’s net interest margin, calculated on a tax-equivalent basis, was 5.70% for the quarter ended September 30, 2013 as compared to 5.47% for the quarter ended September 30, 2012. Net interest margin, calculated on a tax-equivalent basis, was 5.92% for the nine months ended September 30, 2013 as compared to 5.82% for the nine months ended September 30, 2012. Significant factors impacting the trend in net interest margin for the three and nine months ended September 30, 2013 included:

• The tax-equivalent yield on loans declined to 8.83% and 9.79%, respectively, for the three and nine months ended September 30, 2013 compared to 10.79% and 11.80% for the corresponding periods in 2012, primarily because new loans, originated at yields lower than those on the covered loan portfolio, comprised a greater percentage of total loans.
• The yield on new loans decreased to 3.71% and 3.85%, respectively, for the quarter and nine months ended September 30, 2013 from 4.29% and 4.44% for the quarter and nine months ended September 30, 2012, primarily reflecting lower market interest rates.
• The yield on covered loans increased to 26.91% and 25.93%, respectively, for the quarter and nine months ended September 30, 2013 from 20.07% and 20.02% for the quarter and nine months ended September 30, 2012. The increase in the yield on covered loans was impacted by (i) improvements in expected cash flows and (ii) the inclusion in interest income for the quarter and nine months ended September 30, 2013 of proceeds of $13.2 million and $39.0 million, respectively, from the sale of ACI residential loans from a pool with a carrying value of zero.
• Loans, which are higher yielding than other types of interest earning assets, comprised a higher percentage of average interest earning assets for the three and nine months ended September 30, 2013 as compared to the corresponding periods in 2012.
• The average rate on interest bearing liabilities declined to 0.93% and 0.96%, respectively, for the quarter and nine months ended September 30, 2013 from 1.31% and 1.38% for the corresponding periods in 2012, primarily due to declining market interest rates.

As anticipated, the net interest margin for the quarter ended September 30, 2013 declined by 0.44% in comparison to the immediately preceding quarter, largely due to a decline in the average yield on loans. This decline resulted primarily from continued growth of new loans as a percentage of the total loan portfolio. The cost of interest bearing liabilities remained relatively stable quarter over quarter.

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

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

						Balance, December 31, 2011			$	1,523,615
							Reclassification from non-accretable difference			206,934
							Accretion			(444,483	)
						Balance, December 31, 2012				1,286,066
							Reclassification from non-accretable difference			231,070
							Accretion			(313,326	)
						Balance, September 30, 2013			$	1,203,810

Non-interest income

Non-interest income totaled $1.3 million and $25.2 million for the quarter and nine months ended September 30, 2013 as compared to $25.7 million and $83.7 million for the quarter and nine months ended September 30, 2012.

As anticipated, in 2013, the Company began amortizing the FDIC indemnification asset. In prior periods, we recorded accretion of discount on the FDIC indemnification asset. Non-interest income included amortization of the FDIC indemnification asset of $(12.4) million and $(21.8) million, respectively, for the quarter and nine months ended September 30, 2013 compared to accretion of $3.4 million and $14.5 million, respectively, for the quarter and nine months ended September 30, 2012. As the expected cash flows from ACI loans have increased as discussed above, expected cash flows from the FDIC indemnification asset have decreased.

Income from resolution of covered assets, net was $24.6 million and $64.4 million, respectively, for the quarter and nine months ended September 30, 2013 compared to $17.5 million and $39.6 million for the quarter and nine months ended September 30, 2012. This increase in income resulted mainly from higher income from commercial recoveries and lower losses from residential foreclosure resolutions.

Net loss on indemnification asset was $(18.4) million and $(47.7) million, respectively, for the quarter and nine months ended September 30, 2013, compared to $(14.2) million and $(26.6) million for the quarter and nine months ended September 30, 2012. This line item represents the mitigating impact of FDIC indemnification on gains and losses arising from certain transactions related to the covered assets. Significant factors impacting these variances included increased income from resolution of covered assets, net, fluctuations in the provision for (recovery of) losses on covered loans, the loss on sale of covered loans, reduced OREO impairment and more favorable results from the sale of OREO.

Loss on the sale of covered loans was $4.3 million and $9.4 million for the quarter and nine months ended September 30, 2013. No covered loans were sold during the quarter and nine months ended September 30, 2012.

Gains on investment securities available for sale for the quarter and nine months ended September 30, 2013 related primarily to sales of securities to fund loan originations. Securities gains for the nine months ended September 30, 2013 also included gains of $1.6 million from the sale of securities in conjunction with the merger of Herald National Bank (“Herald”) into BankUnited. The quarter and nine months ended September 30, 2012 included approximately $6.0 million of aggregate realized gains from the liquidation of our position in non-investment grade and certain other preferred stock positions in order to reduce our concentration in bank preferred stock investments.

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

Non-interest expense

Non-interest expense totaled $84.3 million and $243.1 million, respectively, for the quarter and nine months ended September 30, 2013 as compared to $77.2 million and $244.4 million for the quarter and nine months ended September 30, 2012.

Employee compensation and benefits for the nine months ended September 30, 2013 as compared to the nine months ended September 30, 2012 reflected a decrease of $10.2 million in equity-based compensation resulting primarily from the vesting in 2012 of instruments issued in conjunction with the Company’s initial public offering of common stock in 2011. Increased compensation costs related to the Company’s growth and expansion into New York largely offset this decrease in equity-based compensation and drove an increase in employee compensation and benefits of $2.1 million for the three months ended September 30, 2013 as compared to the three months ended September 30, 2012.

Occupancy and equipment expense increased to $16.6 million and $47.0 million, respectively, for the quarter and nine months ended September 30, 2013 from $13.7 million and $38.8 million for the quarter and nine months ended September 30, 2012 due primarily to our expansion into New York and the growth and refurbishment of our branch network in Florida.

For the quarter and nine months ended September 30, 2013, the aggregate of foreclosure and OREO expense was $2.8 million and $7.4 million, respectively, as compared to $4.8 million and $14.9 million for the quarter and nine months ended September 30, 2012. For the quarter and nine months ended September 30, 2013, the net amount of gain on sale of OREO and impairment of OREO was $(1.7) million and $(7.1) million, respectively, as compared to (gain) loss of $(25) thousand and $6.5 million for the quarter and nine months ended September 30, 2012. These changes reflect continuing trends of lower levels of OREO and foreclosure activity and an improving real estate market.

Provision for income taxes

The effective income tax rate decreased to 30.9% and 36.0%, for the three and nine months ended September 30, 2013 from 39.2% for both the three and nine months ended September 30, 2012. The decrease reflects the release in the third quarter of 2013 of $3.6 million in reserves for uncertain state income tax positions as a result of the lapse in the statute of limitations related thereto.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Tuesday, October 22, 2013 with Chairman, President and Chief Executive Officer, John A. Kanas and Chief Financial Officer, Leslie N. Lunak.

The earnings release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. The call may be accessed via a live Internet webcast at www.bankunited.com or through a dial in telephone number at (888) 713-4217 (domestic) or (617) 213-4869 (international). The name of the call is BankUnited, Inc. and the confirmation number for the call is 20145461. Participants may pre-register for the call on the Investor Relations page on www.bankunited.com. A replay of the call will be available from 1:00 p.m. ET on Oct. 22 through 11:59 p.m. ET on Oct. 29 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international). The pass code for the replay is 64245043. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.

About BankUnited, Inc. and the FSB Acquisition

BankUnited, Inc. is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with $14.1 billion of assets, 98 banking centers in 15 Florida counties and 5 banking centers in the New York metropolitan area at September 30, 2013.

The Company was organized by a management team led by its Chairman, President and Chief Executive Officer, John A. Kanas in 2009. On May 21, 2009, BankUnited acquired substantially all of the assets and assumed all of the non-brokered deposits and substantially all other liabilities of BankUnited, FSB from the FDIC, in a transaction referred to as the FSB Acquisition. Concurrently with the FSB Acquisition, BankUnited entered into two loss sharing agreements, or the Loss Sharing Agreements, which covered certain legacy assets, including the entire legacy loan portfolio and OREO, and certain purchased investment securities. Assets covered by the Loss Sharing Agreements are referred to as “covered assets” (or, in certain cases, “covered loans”). The Loss Sharing Agreements do not apply to subsequently purchased or originated loans (“new loans”) or other assets. Pursuant to the terms of the Loss Sharing Agreements, the covered assets are subject to a stated loss threshold whereby the FDIC will reimburse BankUnited for 80% of losses, including certain interest and expenses, up to the $4.0 billion stated threshold and 95% of losses in excess of the $4.0 billion stated threshold. The Company’s current estimate of cumulative losses on the covered assets is approximately $4.3 billion. The Company has received $2.5 billion from the FDIC in reimbursements under the Loss Sharing Agreements for claims filed for incurred losses as of September 30, 2013.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 available at the SEC’s website (www.sec.gov).

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data)
				September 30,				December 31,
				2013				2012
ASSETS
Cash and due from banks:
	Non-interest bearing			$	42,360			$	61,088
	Interest bearing				16,854				21,507
Interest bearing deposits at Federal Reserve Bank					463,311				408,827
Federal funds sold					3,154				3,931
	Cash and cash equivalents				525,679				495,353
Investment securities available for sale, at fair value
	(including covered securities of $206,666 and $226,505)				3,871,948				4,172,412
Non-marketable equity securities					149,816				133,060
Loans held for sale					844				2,129
Loans (including covered loans of $1,550,974 and $1,864,375)					7,806,563				5,571,739
	Allowance for loan and lease losses				(59,619	)			(59,121	)
		Loans, net			7,746,944				5,512,618
FDIC indemnification asset					1,265,037				1,457,570
Bank owned life insurance					206,296				207,069
Other real estate owned (including covered OREO of $47,546 and $76,022)					48,510				76,022
Deferred tax asset, net					79,954				62,274
Goodwill and other intangible assets					69,240				69,768
Other assets					343,746				187,678
		Total assets		$	14,308,014			$	12,375,953
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
	Demand deposits:
		Non-interest bearing		$	1,680,004			$	1,312,779
		Interest bearing			632,159				542,561
	Savings and money market				4,429,034				4,042,022
	Time				3,106,906				2,640,711
		Total deposits			9,848,103				8,538,073
	Short-term borrowings				6,015				8,175
	Federal Home Loan Bank advances and other borrowings				2,363,745				1,916,919
	Other liabilities				204,337				106,106
		Total liabilities			12,422,200				10,569,273
Commitments and contingencies
Stockholders' equity:
	Common stock, par value $0.01 per share, 400,000,000 shares authorized; 100,860,270 and 95,006,729 shares issued and outstanding
					1,009				950
	Preferred stock, par value $0.01 per share, 100,000,000 shares authorized; 5,415,794 shares of Series A issued and outstanding at December 31, 2012
					-				54
	Paid-in capital				1,327,164				1,308,315
	Retained earnings				504,702				413,385
	Accumulated other comprehensive income				52,939				83,976
		Total stockholders' equity			1,885,814				1,806,680
		Total liabilities and stockholders' equity		$	14,308,014			$	12,375,953

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
				Three Months Ended September 30,								Nine Months Ended September 30,
				2013				2012				2013				2012
Interest income:
	Loans			$	158,332			$	137,039			$	458,183			$	415,957
	Investment securities available for sale				27,993				32,149				88,194				99,247
	Other				1,359				1,117				3,780				3,306
		Total interest income			187,684				170,305				550,157				518,510
Interest expense:
	Deposits				15,248				16,459				44,287				50,466
	Borrowings				8,318				14,429				23,915				45,021
		Total interest expense			23,566				30,888				68,202				95,487
		Net interest income before provision for (recovery of) loan losses			164,118				139,417				481,955				423,023
	Provision for (recovery of) loan losses (including $(2,837), $1,021, $(988) and $1,137 for covered loans)
					2,604				6,374				19,452				17,866
		Net interest income after provision for (recovery of) loan losses			161,514				133,043				462,503				405,157
Non-interest income:
	(Amortization) accretion of FDIC indemnification asset				(12,354	)			3,432				(21,784	)			14,513
	Income from resolution of covered assets, net				24,592				17,517				64,362				39,602
	Net loss on indemnification asset				(18,377	)			(14,199	)			(47,747	)			(26,602	)
	FDIC reimbursement of costs of resolution of covered assets				2,040				3,566				7,165				13,415
	Service charges and fees				3,634				3,095				10,355				9,440
	Gain (loss) on sale of loans, net (including loss related to covered loans of $(4,286) and $(9,368) for the three and nine months ended September 30, 2013)
					(4,081	)			189				(8,782	)			698
	Gain on investment securities available for sale, net (including loss related to covered securities of $(963) for the nine months ended September 30, 2013)
					1,066				6,035				6,288				6,931
	Mortgage insurance income				310				2,571				1,212				8,910
	Other non-interest income				4,476				3,478				14,160				16,841
		Total non-interest income			1,306				25,684				25,229				83,748
Non-interest expense:
	Employee compensation and benefits				44,117				41,968				130,219				132,544
	Occupancy and equipment				16,571				13,725				46,994				38,776
	Impairment (recovery) of other real estate owned				(243	)			1,385				1,456				7,980
	Gain on sale of other real estate owned				(1,454	)			(1,410	)			(8,576	)			(1,499	)
	Other real estate owned expense				533				1,756				2,663				5,193
	Foreclosure expense				2,270				3,060				4,769				9,671
	Deposit insurance expense				1,926				2,040				5,587				5,136
	Professional fees				4,831				3,850				17,212				11,452
	Telecommunications and data processing				2,842				3,379				9,694				9,730
	Other non-interest expense				12,870				7,469				33,101				25,388
		Total non-interest expense			84,263				77,222				243,119				244,371
Income before income taxes					78,557				81,505				244,613				244,534
Provision for income taxes					24,248				31,948				88,070				95,776
		Net income			54,309				49,557				156,543				148,758
Preferred stock dividends					-				921				-				2,762
		Net income available to common stockholders		$	54,309			$	48,636			$	156,543			$	145,996
Earnings per common share, basic				$	0.52			$	0.48			$	1.52			$	1.45
Earnings per common share, diluted				$	0.52			$	0.48			$	1.51			$	1.44
Cash dividends declared per common share				$	0.21			$	0.17			$	0.63			$	0.51

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
			Three Months Ended September 30,
			2013											2012
			Average							Yield/				Average							Yield/
			Balance				Interest (1)			Rate (2)				Balance				Interest (1)			Rate (2)
Assets:
Interest earning assets:
Loans			$	7,234,822			$	160,257			8.83	%		$	5,117,295			$	138,252			10.79	%
Investment securities available for sale				4,030,197				28,670			2.85	%			4,658,274				33,082			2.84	%
Other interest earning assets				416,185				1,359			1.30	%			559,889				1,117			0.80	%
	Total interest earning assets			11,681,204				190,286			6.50	%			10,335,458				172,451			6.66	%
Allowance for loan and lease losses				(61,792	)										(56,392	)
Non-interest earning assets				2,009,626											2,372,698
	Total assets		$	13,629,038										$	12,651,764
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	571,884				636			0.44	%		$	505,657				824			0.65	%
Savings and money market deposits				4,342,628				5,191			0.47	%			3,989,263				5,867			0.59	%
Time deposits				2,927,537				9,421			1.28	%			2,661,285				9,768			1.46	%
	Total interest bearing deposits			7,842,049				15,248			0.77	%			7,156,205				16,459			0.91	%
Borrowings:
FHLB advances and other borrowings				2,198,613				8,316			1.50	%			2,225,235				14,420			2.58	%
Short-term borrowings				1,118				2			0.50	%			7,952				9			0.43	%
	Total interest bearing liabilities			10,041,780				23,566			0.93	%			9,389,392				30,888			1.31	%
Non-interest bearing demand deposits				1,568,407											1,199,577
Other non-interest bearing liabilities				144,231											335,193
	Total liabilities			11,754,418											10,924,162
Stockholders' equity				1,874,620											1,727,602
	Total liabilities and stockholders' equity		$	13,629,038										$	12,651,764
Net interest income							$	166,720										$	141,563
Interest rate spread											5.57	%										5.35	%
Net interest margin											5.70	%										5.47	%
(1) On a tax-equivalent basis where applicable
(2) Annualized

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
			Nine Months Ended September 30,
			2013											2012
			Average							Yield/				Average							Yield/
			Balance				Interest (1)			Rate (2)				Balance				Interest (1)			Rate (2)
Assets:
Interest earning assets:
Loans			$	6,311,252			$	463,144			9.79	%		$	4,736,869			$	418,835			11.80	%
Investment securities available for sale				4,245,236				90,327			2.84	%			4,582,143				103,129			3.00	%
Other interest earning assets				471,625				3,780			1.07	%			535,912				3,306			0.82	%
	Total interest earning assets			11,028,113				557,251			6.74	%			9,854,924				525,270			7.11	%
Allowance for loan and lease losses				(62,272	)										(54,540	)
Non-interest earning assets				2,060,332											2,408,962
	Total assets		$	13,026,173										$	12,209,346
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	562,299				1,945			0.46	%		$	494,331				2,406			0.65	%
Savings and money market deposits				4,208,333				15,175			0.48	%			3,870,050				18,790			0.65	%
Time deposits				2,734,198				27,167			1.33	%			2,621,599				29,270			1.49	%
	Total interest bearing deposits			7,504,830				44,287			0.79	%			6,985,980				50,466			0.96	%
Borrowings:
FHLB advances and other borrowings				2,026,828				23,896			1.58	%			2,229,674				44,976			2.69	%
Short-term borrowings				5,977				19			0.43	%			14,777				45			0.41	%
	Total interest bearing liabilities			9,537,635				68,202			0.96	%			9,230,431				95,487			1.38	%
Non-interest bearing demand deposits				1,458,849											1,040,153
Other non-interest bearing liabilities				172,342											276,857
	Total liabilities			11,168,826											10,547,441
Stockholders' equity				1,857,347											1,661,905
	Total liabilities and stockholders' equity		$	13,026,173										$	12,209,346
Net interest income							$	489,049										$	429,783
Interest rate spread											5.78	%										5.73	%
Net interest margin											5.92	%										5.82	%
(1) On a tax-equivalent basis where applicable
(2) Annualized

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share amounts)
			Three Months Ended								Nine Months Ended
			September 30,								September 30,
			2013				2012				2013				2012
Basic earnings per common share:
Numerator:
Net income			$	54,309			$	49,557			$	156,543			$	148,758
Preferred stock dividends				-				(921	)			-				(2,762	)
	Net income available to common stockholders			54,309				48,636				156,543				145,996
Distributed and undistributed earnings allocated to participating securities				(2,132	)			(3,536	)			(7,427	)			(10,505	)
	Income allocated to common stockholders for basic earnings per common share		$	52,177			$	45,100			$	149,116			$	135,491
Denominator:
Weighted average common shares outstanding				100,737,319				94,196,429				99,131,377				94,856,763
Less average unvested stock awards				(1,085,044	)			(746,934	)			(1,118,496	)			(1,184,068	)
	Weighted average shares for basic earnings per common share			99,652,275				93,449,495				98,012,881				93,672,695
Basic earnings per common share			$	0.52			$	0.48			$	1.52			$	1.45
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share			$	52,177			$	45,100			$	149,116			$	135,491
Adjustment for earnings reallocated from participating securities				4				2,615				1,264				15
	Income used in calculating diluted earnings per common share		$	52,181			$	47,715			$	150,380			$	135,506
Denominator:
Average shares for basic earnings per common share				99,652,275				93,449,495				98,012,881				93,672,695
Dilutive effect of stock options and preferred shares				196,190				5,613,427				1,626,264				187,582
	Weighted average shares for diluted earnings per common share			99,848,465				99,062,922				99,639,145				93,860,277
Diluted earnings per common share			$	0.52			$	0.48			$	1.51			$	1.44

BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
			Three Months Ended September 30,						Nine Months Ended September 30,
Financial ratios			2013 (4)			2012 (4)			2013 (4)			2012 (4)
	Return on average assets		1.58	%		1.56	%		1.61	%		1.63	%
	Return on average stockholders' equity		11.49	%		11.41	%		11.27	%		11.96	%
	Net interest margin (5)		5.70	%		5.47	%		5.92	%		5.82	%
			September 30,			December 31,
Capital ratios			2013			2012
	Tier 1 leverage		13.11	%		13.16	%
	Tier 1 risk-based capital		24.10	%		33.60	%
	Total risk-based capital		24.97	%		34.88	%
			September 30, 2013						December 31, 2012
Asset quality ratios			Non-Covered			Total			Non-Covered			Total
	Non-performing loans to total loans (1) (3)		0.39	%		0.50	%		0.43	%		0.62	%
	Non-performing assets to total assets (2)		0.18	%		0.61	%		0.13	%		0.89	%
	Allowance for loan and lease losses to total loans (3)		0.73	%		0.76	%		1.11	%		1.06	%
	Allowance for loan and lease losses to non-performing loans (1)		186.06	%		153.98	%		256.65	%		171.21	%
	Net charge-offs to average loans (4)		0.47	%		0.40	%		0.09	%		0.17	%
(1)	We define non-performing loans to include nonaccrual loans, loans, other than ACI loans, that are past due 90 days or more and still accruing and certain loans modified in troubled debt restructurings. Contractually delinquent ACI loans on which interest continues to be accreted are excluded from non-performing loans.
(2)	Non-performing assets include non-performing loans and other real estate owned.
(3)	Total loans is net of unearned discounts, premiums and deferred fees and costs.
(4)	Annualized.
(5)	On a tax-equivalent basis.

Source: BankUnited, Inc.

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