News Release

MIAMI LAKES, Fla.--(BUSINESS WIRE)--Jan. 23, 2014-- BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2013.

For the quarter ended December 31, 2013, the Company reported net income of $52.4 million, or $0.50 per diluted share, as compared to $62.5 million, or $0.61 per diluted share, for the quarter ended December 31, 2012.

For the year ended December 31, 2013, the Company reported net income of $208.9 million, or $2.01 per diluted share, generating a return on average stockholders’ equity of 11.16% and a return on average assets of 1.55%. The Company reported net income of $211.3 million, or $2.05 per diluted share, for the year ended December 31, 2012.

John Kanas, Chairman, President and Chief Executive Officer, said, “Organic growth continues to drive our Company’s success in all of our markets. We are particularly pleased with the early success of our New York operations and expect this momentum to continue in the future.”

Performance Highlights

• New loans grew by $1.3 billion during the fourth quarter of 2013. For the year ended December 31, 2013, new loans increased by $3.9 billion to $7.6 billion.
• Total deposits increased by $684 million for the quarter ended December 31, 2013 to $10.5 billion, with demand deposits totaling $2.8 billion, or 27% of total deposits. For the year ended December 31, 2013, total deposits grew by $2.0 billion.
• The net interest margin, calculated on a tax-equivalent basis, was 5.24% for the quarter ended December 31, 2013 compared to 6.72% for the quarter ended December 31, 2012, and 5.73% compared to 6.05% for the years ended December 31, 2013 and 2012, respectively. The most significant factor impacting this expected trend in the net interest margin was the origination of new loans at yields lower than those on the covered loan portfolio. As discussed further below, the net interest margin for the quarter ended December 31, 2012 also benefited to a greater extent from the inclusion in interest income of proceeds from the sale of ACI loans from a pool that has a carrying value of zero.
• The cost of deposits continues to trend downward. The cost of deposits was 0.63% for the fourth quarter of 2013 as compared to 0.73% for the fourth quarter of 2012 and 0.65% for the year ended December 31, 2013 as compared to 0.81% for the year ended December 31, 2012. Excluding the impact of hedge accounting and accretion of fair value adjustments, the cost of deposits was 0.58% for the quarter ended December 31, 2013.
• Earnings for the quarter ended December 31, 2013 included net securities gains of approximately $2.3 million related to sales of certain securities in response to regulatory changes, as discussed further below. Additionally, earnings for the fourth quarter of 2013 benefited from a reduction in the effective income tax rate resulting from changes in certain state tax positions and apportionment factors.
• Book value and tangible book value per common share grew to $19.09 and $18.41, respectively, at December 31, 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 December 31, 2013 were as follows:

Tier 1 leverage				12.4%
Tier 1 risk-based capital				21.1%
Total risk-based capital				21.9%

Loans and Leases

Loans, net of premiums, discounts and deferred fees and costs, increased to $9.1 billion at December 31, 2013 from $5.6 billion at December 31, 2012. New loans grew by $3.9 billion to $7.6 billion at December 31, 2013 from $3.7 billion at December 31, 2012. Covered loans declined to $1.5 billion at December 31, 2013 from $1.9 billion at December 31, 2012.

New loans, net of premiums, discounts and deferred fees and costs, grew by $1.3 billion in the fourth quarter of 2013. The New York franchise contributed $720 million to new loan growth for the quarter while the Florida franchise contributed $247 million and our national platforms contributed $347 million. We refer to our three commercial lending subsidiaries, our residential mortgage purchase program and our indirect auto platform as national platforms. At December 31, 2013, the new loan portfolio included $3.2 billion, $1.6 billion and $2.8 billion attributable to the Florida franchise, the New York franchise and our national platforms, respectively.

For the quarter ended December 31, 2013, new commercial loans, including commercial loans, commercial real estate loans and leases, grew $1.0 billion to $5.5 billion, reflecting the successful launch of lending operations in New York and continued growth in the portfolios of our Florida franchise and lending subsidiaries. New residential loans grew by $196 million to $1.8 billion during the fourth quarter of 2013, primarily as a result of the continuation of the Company’s residential loan purchase program. For the year ended December 31, 2013, new commercial loans grew by $2.8 billion while new residential loans grew by $879 million and new consumer loans, comprised primarily of indirect auto loans, grew by $180 million.

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

		New Loans				Total Loans
		December 31,		December 31,		December 31,		December 31,
		2013		2012		2013		2012
Single family residential and home equity		24.0%		25.0%		34.3%		45.3%
Commercial real estate		38.5%		31.8%		34.3%		25.6%
Commercial		34.7%		42.3%		29.0%		28.5%
Consumer		2.8%		0.9%		2.4%		0.6%
		100.0%		100.0%		100.0%		100.0%

The Company’s portfolio of equipment under operating lease grew by $158 million and $11 million for the year and quarter ended December 31, 2013, respectively, to $196 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 December 31, 2013, covered loans represented 16.4% 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 0.31% at December 31, 2013 and 0.43% at December 31, 2012. The ratio of total non-performing loans to total loans was 0.39% at December 31, 2013 as compared to 0.62% at December 31, 2012. At December 31, 2013, non-performing assets totaled $76.2 million, including $40.6 million of other real estate owned (“OREO”), as compared to $110.6 million, including $76.0 million of OREO, at December 31, 2012. At December 31, 2013, 68% of total non-performing assets were covered assets.

For the quarters ended December 31, 2013 and 2012, the Company recorded provisions for loan losses of $12.5 million and $1.0 million, respectively. Of these amounts, $(0.8) million and $(1.6) million, respectively, related to recoveries of loan losses on covered loans, and $13.3 million and $2.7 million, respectively, related to provisions for new loans.

For the years ended December 31, 2013 and 2012, the Company recorded provisions for loan losses of $32.0 million and $18.9 million, respectively. Of these amounts, $(1.7) million and $(0.5) million, respectively, related to recoveries of loan losses on covered loans, and $33.7 million and $19.4 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 year ended December 31, 2013, the provision for new loans was also impacted by specific reserves recognized on impaired loans, particularly related to one commercial relationship.

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

The following tables summarize the activity in the allowance for loan and lease losses for the quarter and year ended December 31, 2013 and 2012 (in thousands):

			Three Months Ended December 31, 2013												Three Months Ended December 31, 2012
			ACI Loans			Non-ACI Loans			New Loans			Total			ACI Loans			Non-ACI Loans			New Loans			Total
Balance at beginning of period			$	3,345		$	10,743		$	45,531		$	59,619		$	9,922		$	10,865		$	39,629		$	60,416
	Provision			(452)			(299)			13,263			12,512			(698)			(942)			2,670			1,030
	Charge-offs			-			(1,083)			(1,644)			(2,727)			(1,205)			(519)			(1,235)			(2,959)
	Recoveries			-			140			181			321			-			470			164			634
Balance at end of period			$	2,893		$	9,501		$	57,331		$	69,725		$	8,019		$	9,874		$	41,228		$	59,121

			Year Ended December 31, 2013												Year Ended December 31, 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			(2,892)			1,153			33,703			31,964			(4,347)			3,844			19,399			18,896
	Charge-offs			(2,234)			(4,306)			(18,481)			(25,021)			(3,966)			(3,591)			(2,929)			(10,486)
	Recoveries			-			2,780			881			3,661			-			1,879			430			2,309
Balance at end of period			$	2,893		$	9,501		$	57,331		$	69,725		$	8,019		$	9,874		$	41,228		$	59,121

Deposits

At December 31, 2013, deposits totaled $10.5 billion compared to $8.5 billion at December 31, 2012. Demand deposits, including non-interest bearing and interest bearing deposits, comprised 27% of total deposits at December 31, 2013, compared to 22% of total deposits at December 31, 2012. The average cost of deposits was 0.63% for the quarter ended December 31, 2013 as compared to 0.73% for the quarter ended December 31, 2012 and 0.65% for the year ended December 31, 2013 as compared to 0.81% for the year ended December 31, 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 0.60% for the year ended December 31, 2013.

Net interest income

Net interest income for the quarter ended December 31, 2013 decreased to $164.3 million from $174.6 million for the quarter ended December 31, 2012. Net interest income for the year ended December 31, 2013 was $646.2 million as compared to $597.6 million for the year ended December 31, 2012. Trends in the amount of net interest income were impacted by proceeds, which were recorded in interest income, from the sale of loans from a pool of ACI loans carried at zero. Interest income included $11.7 million and $50.6 million of such proceeds, respectively, for the quarter and year ended December 31, 2013 compared to $29.9 million for both the quarter and year ended December 31, 2012. In 2012, all sales of covered loans took place in the fourth quarter. The impact of sales of loans from this pool is expected to decrease in the future.

The Company’s net interest margin, calculated on a tax-equivalent basis, was 5.24% for the quarter ended December 31, 2013 as compared to 6.72% for the quarter ended December 31, 2012. Net interest margin, calculated on a tax-equivalent basis, was 5.73% for the year ended December 31, 2013 as compared to 6.05% for the year ended December 31, 2012. Significant factors impacting this expected trend in net interest margin for the quarter and year ended December 31, 2013 included:

• The tax-equivalent yield on loans declined to 7.80% from 12.73% and to 9.18% from 12.05%, respectively, for the quarter and year ended December 31, 2013 compared to the quarter and year ended December 31, 2012, primarily because new loans, originated at yields lower than those on the covered loan portfolio, comprised a greater percentage of total loans. The decline in the fourth quarter of 2013 compared to 2012 was also impacted by loan sale activity related to the pool of ACI loans with a carrying value of zero, as discussed above.
• The yield on new loans decreased to 3.61% and 3.77%, respectively, for the quarter and year ended December 31, 2013 from 4.12% and 4.34% for the quarter and year ended December 31, 2012, primarily reflecting the impact of lower market interest rates on new production.
• The yield on covered loans for the quarter ended December 31, 2013 decreased to 26.77% from 27.93% for the quarter ended December 31, 2012 while the yield on covered loans for the year ended December 31, 2013 increased to 26.13% from 21.80% for the year ended December 31, 2012. These changes in yields on covered loans reflected (i) improvements in expected cash flows and corresponding transfers from non-accretable difference to accretable yield and (ii) changes in the timing and amount of interest income recognized in connection with the sale of ACI residential loans from the pool with a carrying value of zero, which accounted for a 3.10% decline in the quarterly yield and a 1.68% increase in the annual yield.
• The average rate on interest bearing liabilities declined to 0.91% and 0.94%, respectively, for the quarter and year ended December 31, 2013 from 1.17% and 1.33% for the quarter and year ended December 31, 2012, primarily due to declining market interest rates.
• Non-interest bearing deposits comprised a greater percentage of average total deposits for the quarter and year ended December 31, 2013 than for the quarter and year ended December 31, 2012. Average non-interest bearing deposits were 19% and 17%, respectively, of average total deposits for the quarter and year ended December 31, 2013 as compared to 15% and 13%, respectively, of average total deposits for the quarter and year ended December 31, 2012.

As anticipated, the net interest margin for the quarter ended December 31, 2013 declined by 0.46% 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 continues to be 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, 2013 and 2012 were as follows (in thousands):

	Balance, December 31, 2011		$	1,523,615
		Reclassifications from non-accretable difference		206,934
		Accretion		(444,483)
	Balance, December 31, 2012			1,286,066
		Reclassifications from non-accretable difference		282,952
		Accretion		(410,446)
	Balance, December 31, 2013		$	1,158,572

Non-interest income

Non-interest income totaled $5.9 million and $31.1 million for the quarter and year ended December 31, 2013 as compared to $5.5 million and $89.2 million for the quarter and year ended December 31, 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 $(15.2) million and $(36.9) million, respectively, for the quarter and year ended December 31, 2013 compared to accretion of $0.8 million and $15.3 million, respectively, for the quarter and year ended December 31, 2012. As the expected cash flows from ACI loans have increased, resulting in an increased yield on ACI loans as discussed above, expected cash flows from the FDIC indemnification asset have decreased, resulting in a declining, and ultimately negative, yield on the FDIC indemnification asset.

The consolidated statement of income line items Provision for (recovery of) losses on covered loans, Income from resolution of covered assets, net, Loss on sale of covered loans, Loss on covered investment securities, Impairment of other real estate owned and Gain on sale of other real estate owned relate to transactions in the covered assets. The line item Net gain (loss) on indemnification asset represents the mitigating impact of FDIC indemnification on gains and losses arising from these transactions in the covered assets. The impact on pre-tax earnings of these transactions, net of FDIC indemnification, for the quarter and year ended December 31, 2013 was $6.0 million and $20.4 million, respectively, compared to $5.0 million and $10.5 million, respectively, for the quarter and year ended December 31, 2012.

Income from resolution of covered assets, net was $14.5 million and $78.9 million, respectively, for the quarter and year ended December 31, 2013 compared to $11.4 million and $51.0 million for the quarter and year ended December 31, 2012. These increases in income resulted mainly from higher income from commercial recoveries and lower losses from residential foreclosure resolutions.

Loss on the sale of covered loans was $6.8 million and $16.2 million, respectively, for the quarter and year ended December 31, 2013, compared to $29.3 million for each of the quarter and year ended December 31, 2012. The decline in losses for the year ended December 31, 2013 as compared to 2012 was primarily a result of improved pricing. As discussed above, the Company sold covered loans quarterly in 2013, but only in the fourth quarter of 2012.

Net gain (loss) on indemnification asset was $(2.9) million and $(50.6) million, respectively, for the quarter and year ended December 31, 2013, compared to $20.6 million and $(6.0) million for the quarter and year ended December 31, 2012. Variances in net gain (loss) on indemnification asset are directly related to variances in income from resolution of covered assets, net, the loss on sale of covered loans, the loss on covered investment securities, the provision for (recovery of) losses on covered loans, OREO impairment and gains on the sale of OREO.

Securities gains for the year ended December 31, 2013 related primarily to sales of securities to fund loan originations. Gains on investment securities available for sale for the quarter ended December 31, 2013 included $2.3 million in net gains related to the liquidation of our positions in collateralized loan obligations and certain re-securitized real estate mortgage investment conduits in response to the release of the Volcker Rule. Securities gains for 2013 also included $1.6 million related to the sale of securities in conjunction with the merger of Herald National Bank into BankUnited.

During the fourth quarter of 2012, we sold investment securities, utilizing the proceeds to extinguish 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. Securities gains for 2012 also included approximately $6.4 million of aggregate realized gains from the sale of certain preferred stock positions.

Declines in FDIC reimbursement of costs of resolution of covered assets and mortgage insurance income from 2012 to 2013 reflect the lower volume of covered loan foreclosure resolution activity.

Non-interest expense

Non-interest expense totaled $84.2 million and $327.4 million, respectively, for the quarter and year ended December 31, 2013 as compared to $78.7 million and $323.1 million for the quarter and year ended December 31, 2012.

Employee compensation and benefits for the year ended December 31, 2013 as compared to the year ended December 31, 2012 reflected a decrease of $10.0 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 offset this decrease in equity-based compensation and drove an increase in employee compensation and benefits of $2.8 million for the quarter ended December 31, 2013 as compared to the quarter ended December 31, 2012.

Occupancy and equipment expense increased to $16.8 million and $63.8 million, respectively, for the quarter and year ended December 31, 2013 from $15.7 million and $54.5 million for the quarter and year ended December 31, 2012 due primarily to our expansion into New York and the growth and refurbishment of our branch network in Florida.

For the quarter and year ended December 31, 2013, foreclosure and OREO expense was $3.0 million and $10.4 million, respectively, as compared to $5.4 million and $20.3 million for the quarter and year ended December 31, 2012. For the quarter and year ended December 31, 2013, the net amount of (gain) loss on sale of OREO and impairment of OREO was $(0.5) million and $(7.6) million, respectively, as compared to $(0.7) million and $5.8 million for the quarter and year ended December 31, 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 29% and 34%, respectively, for the quarter and year ended December 31, 2013 from 38% and 39% for the quarter and year ended December 31, 2012. These decreases reflect the impact of changes in certain state tax positions and apportionment factors in the fourth quarter of 2013 and the release of reserves for uncertain state income tax positions as a result of the lapse in the statute of limitations related thereto in the third quarter of 2013.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, January 23, 2014 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 41595423. 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 January 23, 2014 through 11:59 p.m. ET on January 30, 2014 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international). The pass code for the replay is 87858573. 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 $14.9 billion of assets, 99 branches in 15 Florida counties and 6 banking centers in the New York metropolitan area at December 31, 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 December 31, 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)
			December 31,			December 31,
			2013			2012
ASSETS
Cash and due from banks:
	Non-interest bearing		$	45,976		$	61,088
	Interest bearing			14,590			21,507
Interest bearing deposits at Federal Reserve Bank				190,075			408,827
Federal funds sold				2,108			3,931
	Cash and cash equivalents			252,749			495,353
Investment securities available for sale, at fair value
	(including covered securities of $205,769 and $226,505)			3,637,124			4,172,412
Non-marketable equity securities				152,066			133,060
Loans held for sale				194			2,129
Loans (including covered loans of $1,483,888 and $1,864,375)				9,053,609			5,571,739
	Allowance for loan and lease losses			(69,725)			(59,121)
		Loans, net		8,983,884			5,512,618
FDIC indemnification asset				1,205,117			1,457,570
Bank owned life insurance				206,759			207,069
Other real estate owned (including covered OREO of $39,672 and $76,022)				40,570			76,022
Deferred tax asset, net				70,626			62,274
Goodwill and other intangible assets				69,067			69,768
Other assets				428,493			187,678
		Total assets	$	15,046,649		$	12,375,953
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
	Demand deposits:
		Non-interest bearing	$	2,171,335		$	1,312,779
		Interest bearing		676,079			542,561
	Savings and money market			4,402,987			4,042,022
	Time			3,282,027			2,640,711
		Total deposits		10,532,428			8,538,073
	Federal Home Loan Bank advances and other borrowings			2,414,313			1,925,094
	Other liabilities			171,210			106,106
		Total liabilities		13,117,951			10,569,273
Commitments and contingencies
Stockholders' equity:
	Common stock, par value $0.01 per share, 400,000,000 shares authorized;
		101,013,014 and 95,006,729 shares issued and outstanding		1,010			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			1,334,945			1,308,315
	Retained earnings			535,263			413,385
	Accumulated other comprehensive income			57,480			83,976
		Total stockholders' equity		1,928,698			1,806,680
		Total liabilities and stockholders' equity	$	15,046,649		$	12,375,953

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
				Three Months Ended December 31,						Years Ended December 31,
				2013			2012			2013			2012
Interest income:
	Loans			$	160,761		$	168,770		$	618,944		$	584,727
	Investment securities available for sale				26,341			31,951			114,535			131,198
	Other				1,562			1,625			5,342			4,931
		Total interest income			188,664			202,346			738,821			720,856
Interest expense:
	Deposits				16,279			15,712			60,566			66,178
	Borrowings				8,130			12,070			32,045			57,091
		Total interest expense			24,409			27,782			92,611			123,269
		Net interest income before provision for (recovery of) loan losses			164,255			174,564			646,210			597,587
	Provision for (recovery of) loan losses (including $(750),
		$(1,640), $(1,738) and $(503) for covered loans)			12,512			1,030			31,964			18,896
		Net interest income after provision for (recovery of) loan losses			151,743			173,534			614,246			578,691
Non-interest income:
	(Amortization) accretion of FDIC indemnification asset				(15,159)			793			(36,943)			15,306
	Income from resolution of covered assets, net				14,500			11,414			78,862			51,016
	Net gain (loss) on indemnification asset				(2,891)			20,572			(50,638)			(6,030)
	FDIC reimbursement of costs of resolution of covered assets				2,232			6,154			9,397			19,569
	Service charges and fees				3,914			3,276			14,255			12,716
	Loss on sale of loans, net (including loss related to covered
		loans of $6,827, $29,333, $16,195 and $29,270)			(6,728)			(29,355)			(15,469)			(28,657)
	Gain on investment securities available for sale, net (including loss
		related to covered securities of $(963) for the year ended December 31, 2013)			2,341			10,108			8,629			17,039
	Loss on extinguishment of debt				-			(14,175)			-			(14,175)
	Loss on termination of interest rate swap				-			(8,701)			-			(8,701)
	Mortgage insurance income				849			862			2,061			9,772
	Other non-interest income				6,792			4,551			20,952			21,392
		Total non-interest income			5,850			5,499			31,106			89,247
Non-interest expense:
	Employee compensation and benefits				43,544			40,717			173,763			173,261
	Occupancy and equipment				16,772			15,689			63,766			54,465
	Impairment of other real estate owned				483			1,946			1,939			9,926
	Gain on sale of other real estate owned				(992)			(2,665)			(9,568)			(4,164)
	Foreclosure and other real estate owned expense				3,010			5,404			10,442			20,268
	Deposit insurance expense				2,061			2,112			7,648			7,248
	Professional fees				4,722			4,016			21,934			15,468
	Telecommunications and data processing				3,340			2,732			13,034			12,462
	Other non-interest expense				11,264			8,751			44,392			34,139
		Total non-interest expense			84,204			78,702			327,350			323,073
Income before income taxes					73,389			100,331			318,002			344,865
Provision for income taxes					20,996			37,829			109,066			133,605
		Net income			52,393			62,502			208,936			211,260
Preferred stock dividends					-			1,137			-			3,899
		Net income available to common stockholders		$	52,393		$	61,365		$	208,936		$	207,361
Earnings per common share, basic				$	0.50		$	0.61		$	2.03		$	2.05
Earnings per common share, diluted				$	0.50		$	0.61		$	2.01		$	2.05
Cash dividends declared per common share				$	0.21		$	0.21		$	0.84		$	0.72

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
			Three Months Ended December 31,
			2013									2012
			Average						Yield/			Average						Yield/
			Balance			Interest (1)			Rate (2)			Balance			Interest (1)			Rate (2)
Assets:
Interest earning assets:
Loans			$	8,320,870		$	162,804			7.80%		$	5,334,961		$	170,114			12.73%
Investment securities available for sale				3,809,501			26,961			2.83%			4,698,454			32,704			2.78%
Other interest earning assets				585,414			1,562			1.06%			481,299			1,625			1.35%
	Total interest earning assets			12,715,785			191,327			6.00%			10,514,714			204,443			7.77%
Allowance for loan and lease losses				(63,020)									(62,189)
Non-interest earning assets				2,050,776									2,323,689
	Total assets		$	14,703,541								$	12,776,214
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	642,935			753			0.46%		$	535,240			749			0.56%
Savings and money market deposits				4,494,773			5,444			0.48%			4,038,706			5,303			0.52%
Time deposits				3,171,318			10,082			1.26%			2,664,771			9,660			1.44%
	Total interest bearing deposits			8,309,026			16,279			0.78%			7,238,717			15,712			0.86%
FHLB advances and other borrowings				2,292,375			8,130			1.41%			2,228,117			12,070			2.16%
	Total interest bearing liabilities			10,601,401			24,409			0.91%			9,466,834			27,782			1.17%
Non-interest bearing demand deposits				1,963,335									1,276,043
Other non-interest bearing liabilities				221,152									231,276
	Total liabilities			12,785,888									10,974,153
Stockholders' equity				1,917,653									1,802,061
	Total liabilities and stockholders' equity		$	14,703,541								$	12,776,214
Net interest income						$	166,918								$	176,661
Interest rate spread										5.09%									6.60%
Net interest margin										5.24%									6.72%
(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,
			2013									2012
			Average						Yield/			Average						Yield/
			Balance			Interest (1)			Rate			Balance			Interest (1)			Rate
Assets:
Interest earning assets:
Loans			$	6,817,786		$	625,948			9.18%		$	4,887,209		$	588,950			12.05%
Investment securities available for sale				4,135,407			117,289			2.84%			4,611,379			135,833			2.95%
Other interest earning assets				500,306			5,342			1.07%			522,184			4,931			0.94%
	Total interest earning assets			11,453,499			748,579			6.54%			10,020,772			729,714			7.28%
Allowance for loan and lease losses				(62,461)									(56,463)
Non-interest earning assets				2,057,923									2,387,719
	Total assets		$	13,448,961								$	12,352,028
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits			$	582,623			2,698			0.46%		$	504,614			3,155			0.63%
Savings and money market deposits				4,280,531			20,620			0.48%			3,912,444			24,093			0.62%
Time deposits				2,844,377			37,248			1.31%			2,632,451			38,930			1.48%
	Total interest bearing deposits			7,707,531			60,566			0.79%			7,049,509			66,178			0.94%
FHLB advances and other borrowings				2,098,231			32,045			1.53%			2,240,345			57,091			2.55%
	Total interest bearing liabilities			9,805,762			92,611			0.94%			9,289,854			123,269			1.33%
Non-interest bearing demand deposits				1,586,007									1,099,448
Other non-interest bearing liabilities				184,645									265,399
	Total liabilities			11,576,414									10,654,701
Stockholders' equity				1,872,547									1,697,327
	Total liabilities and stockholders' equity		$	13,448,961								$	12,352,028
Net interest income						$	655,968								$	606,445
Interest rate spread										5.60%									5.95%
Net interest margin										5.73%									6.05%
(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,
			2013			2012			2013			2012
Basic earnings per common share:
Numerator:
Net income			$	52,393		$	62,502		$	208,936		$	211,260
Preferred stock dividends				-			(1,137)			-			(3,899)
	Net income available to common stockholders			52,393			61,365			208,936			207,361
Distributed and undistributed earnings allocated to participating securities				(1,957)			(4,608)			(9,380)			(15,081)
	Income allocated to common stockholders for basic earnings per common share		$	50,436		$	56,757		$	199,556		$	192,280
Denominator:
Weighted average common shares outstanding				100,942,859			94,597,067			99,587,970			94,791,484
Less average unvested stock awards				(1,021,034)			(997,655)			(1,093,930)			(1,137,210)
	Weighted average shares for basic earnings per common share			99,921,825			93,599,412			98,494,040			93,654,274
Basic earnings per common share			$	0.50		$	0.61		$	2.03		$	2.05
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share			$	50,436		$	56,757		$	199,556			192,280
Adjustment for earnings reallocated from participating securities				3			6			1,265			20
	Income used in calculating diluted earnings per common share		$	50,439		$	56,763		$	200,821		$	192,300
Denominator:
Average shares for basic earnings per common share				99,921,825			93,599,412			98,494,040			93,654,274
Dilutive effect of stock options and preferred shares				177,951			162,880			1,257,565			174,509
	Weighted average shares for diluted earnings per common share			100,099,776			93,762,292			99,751,605			93,828,783
Diluted earnings per common share			$	0.50		$	0.61		$	2.01		$	2.05

BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
			Three Months Ended December 31,				Years Ended December 31,
Financial ratios			2013 (4)		2012 (4)		2013		2012
		Return on average assets	1.41%		1.95%		1.55%		1.71%
		Return on average stockholders' equity	10.84%		13.80%		11.16%		12.45%
		Net interest margin (5)	5.24%		6.72%		5.73%		6.05%
			December 31,		December 31,
Capital ratios			2013		2012
		Tier 1 leverage	12.42%		13.16%
		Tier 1 risk-based capital	21.06%		33.60%
		Total risk-based capital	21.93%		34.88%
			December 31, 2013				December 31, 2012
Asset quality ratios			Non-Covered		Total		Non-Covered		Total
		Non-performing loans to total loans (1) (3)	0.31%		0.39%		0.43%		0.62%
		Non-performing assets to total assets (2)	0.16%		0.51%		0.13%		0.89%
		Allowance for loan and lease losses to total loans (3)	0.76%		0.77%		1.11%		1.06%
		Allowance for loan and lease losses to non-performing loans (1)	246.73%		195.52%		256.65%		171.21%
		Net charge-offs to average loans (4)	0.34%		0.31%		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