EX-99.1 2 earningsdocex99120220930.htm EX-99.1 Document

Exhibit 99.1
 
BANKUNITED, INC. REPORTS THIRD QUARTER 2022 RESULTS

Miami Lakes, Fla. — October 20, 2022 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended September 30, 2022.
"We are happy to announce a very strong earnings quarter with double digit growth in EPS. We're optimistic about the opportunities we see in front of us." said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended September 30, 2022, the Company reported net income of $87.9 million, or $1.12 per diluted share, compared to $65.8 million, or $0.82 per diluted share for the immediately preceding quarter ended June 30, 2022 and $86.9 million, or $0.94 per diluted share, for the quarter ended September 30, 2021. Earnings for the quarter ended September 30, 2022 generated an annualized return on equity of 13.5%. For the nine months ended September 30, 2022, the Company reported net income of $220.8 million, or $2.71 per diluted share, compared to $289.7 million, or $3.12 per diluted share, for the nine months ended September 30, 2021. Earnings for the nine months ended September 30, 2021 were favorably impacted by a $67.4 million recovery of the provision for credit losses.
Quarterly Highlights
•The net interest margin, calculated on a tax-equivalent basis, expanded to 2.76% for the quarter ended September 30, 2022 from 2.63% for the immediately preceding quarter and 2.33% for the quarter ended September 30, 2021. Net interest income increased by $10.4 million compared to the immediately preceding quarter ended June 30, 2022 and by $40.7 million compared to the quarter ended September 30, 2021.
•In response to the rising interest rate environment, the average cost of total deposits increased to 0.78% for the quarter ended September 30, 2022, from 0.30% for the immediately preceding quarter ended June 30, 2022 and 0.20% for the quarter ended September 30, 2021. The yield on average interest earning assets increased to 3.80% for the quarter ended September 30, 2022 from 3.11% for the immediately preceding quarter and 2.79% for the quarter ended September 30, 2021.
•For the quarter ended September 30, 2022, the Company recorded a provision for credit losses of $3.7 million compared to a provision of $24.0 million for the immediately preceding quarter ended June 30, 2022 and a recovery of the provision for credit losses of $(11.8) million for the quarter ended September 30, 2021. The ratio of the ACL to total loans was consistent with the prior quarter-end at 0.54%.
•Loans, excluding the runoff of PPP loans, grew by $186 million for the quarter ended September 30, 2022. The core C&I and commercial real estate portfolio segments grew by a total of $444 million. As expected given the market-wide decline in mortgage origination activity, mortgage warehouse loans declined by $194 million.
•Total deposits declined by $1.1 billion during the quarter ended September 30, 2022. Non-interest bearing demand deposits declined by $851 million to 32% of total deposits, from 34% of total deposits at June 30, 2022. Year to date, non-interest bearing demand deposits declined by $182 million. Time deposits grew by $976 million during the quarter ended September 30, 2022, reflecting a strategy to extend the term of deposits.
•The positive trend in levels of criticized and classified loans continued during the quarter ended September 30, 2022, declining by $175 million; the annualized net charge-off ratio declined to 0.16% compared to 0.29% for the year ended December 31, 2021. The ratio of non-performing loans to total loans was 0.64% at September 30, 2022. The guaranteed portion of SBA loans on non-accrual status represented 0.17% of total loans and 27% of non-performing loans at September 30, 2022.
•On October 5, 2022, BankUnited was named #3 on the list of the healthiest 100 workplaces in America published by Healthiest Employers, highlighting our commitment to employee wellness initiatives and programs.
•Hurricane Ian made landfall on the southwest Florida coast on September 28, 2022. BankUnited did not sustain significant damage or disruption to facilities or operations. Based on information collected to date, we do not expect the impact of the storm to be material to our financial condition or results of operations.
1

•As previously reported, on September 13, 2022, the Company's Board of Directors authorized the repurchase of up to an additional $150 million in shares of its outstanding common stock. During the quarter ended September 30, 2022, the Company repurchased approximately 0.3 million shares of its common stock for an aggregate purchase price of $10.8 million, at a weighted average price of $34.36 per share.
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
September 30, 2022June 30, 2022December 31, 2021
Residential and other consumer loans$8,853,884 36.4 %$8,840,387 36.7 %$8,368,380 35.2 %
Multi-family962,546 4.0 %1,017,500 4.2 %1,154,738 4.9 %
Non-owner occupied commercial real estate4,368,686 18.1 %4,276,697 17.7 %4,381,610 18.4 %
Construction and land246,202 1.0 %213,833 0.9 %165,390 0.7 %
Owner occupied commercial real estate1,919,074 7.9 %1,907,349 7.9 %1,944,658 8.2 %
Commercial and industrial5,786,907 23.9 %5,423,998 22.5 %4,790,275 20.2 %
PPP10,191 — %29,828 0.1 %248,505 1.0 %
Pinnacle932,187 3.8 %977,930 4.1 %919,641 3.9 %
Bridge - franchise finance254,137 1.0 %262,570 1.1 %342,124 1.4 %
Bridge - equipment finance310,035 1.3 %333,125 1.4 %357,599 1.5 %
Mortgage warehouse lending ("MWL")622,883 2.6 %816,797 3.4 %1,092,133 4.6 %
$24,266,732 100.0 %$24,100,014 100.0 %$23,765,053 100.0 %
In the aggregate, commercial loans, excluding the runoff of PPP, grew by $173 million during the quarter ended September 30, 2022. The largest increase was in the commercial and industrial segment, including owner-occupied commercial real estate, which grew by $375 million, followed by the commercial real estate segment with $69 million in growth. The remaining commercial segments declined during the quarter; the largest decline was in MWL, with $194 million. MWL utilization declined to 32% at September 30, 2022, compared to 46% at June 30, 2022 and 56% at December 31, 2021.
Asset Quality and the Allowance for Credit Losses ("ACL")
Non-performing loans totaled $156.4 million or 0.64% of total loans at September 30, 2022, compared to $144.0 million or 0.60% of total loans at June 30, 2022. Non-performing loans included $41.8 million and $43.4 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.17% and 0.18% of total loans at September 30, 2022 and June 30, 2022, respectively.
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
September 30, 2022June 30, 2022December 31, 2021
Special mention$26,939 $89,153 $148,593 
Substandard - accruing662,716 787,399 1,136,378 
Substandard - non-accruing104,994 117,518 129,579 
Doubtful32,093 7,971 47,754 
Total $826,742 $1,002,041 $1,462,304 
2

The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the periods ended September 30, 2022 and June 30, 2022, and the year ended December 31, 2021 (dollars in thousands):
ACL
ACL to Total Loans (1)
ACL to Non-Performing Loans
Net Charge-offs to Average Loans (2)
December 31, 2021$126,457 0.53 %61.41 %0.29 %
June 30, 2022$130,239 0.54 %90.45 %0.23 %
September 30, 2022$130,671 0.54 %83.54 %0.16 %
(1)    ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.60%, 0.61%, and 0.62% at September 30, 2022, June 30, 2022 and December 31, 2021, respectively.
(2)    Annualized for the six months ended June 30, 2022 and the nine months ended September 30, 2022.
The ACL at September 30, 2022 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. For the quarter ended September 30, 2022, the Company recorded a provision for credit losses of $3.7 million, including $2.8 million related to funded loans. Offsetting factors impacting the provision for credit losses for the quarter ended September 30, 2022 included an increase related to the updated economic forecast, increases in specific reserves, loan growth and a $5 million provision related to the potential impact of Hurricane Ian, partially offset by decreases in certain qualitative factors and the impact of improving borrower financial results.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Beginning balance$130,239 $175,642 $126,457 $257,323 
Provision (recovery)2,753 (11,554)33,406 (65,523)
Net charge-offs(2,321)(4,473)(29,192)(32,185)
Ending balance$130,671 $159,615 $130,671 $159,615 
Net Interest Income
Net interest income for the quarter ended September 30, 2022 was $235.8 million compared to $225.4 million for the immediately preceding quarter ended June 30, 2022 and $195.1 million for the quarter ended September 30, 2021. Interest income increased by $59.1 million for the quarter ended September 30, 2022 compared to the immediately preceding quarter while interest expense increased by $48.6 million.
The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.13% to 2.76% for the quarter ended September 30, 2022, from 2.63% for the immediately preceding quarter ended June 30, 2022. Factors impacting the net interest margin for the quarter ended September 30, 2022 included:
•The tax-equivalent yield on investment securities increased to 3.12% for the quarter ended September 30, 2022, from 2.12% for the quarter ended June 30, 2022. This increase resulted from the reset of coupon rates on variable rate securities and purchases of higher-yielding securities.
•The tax-equivalent yield on loans increased to 4.11% for the quarter ended September 30, 2022, from 3.59% for the quarter ended June 30, 2022. The resetting of variable rate loans to higher coupon rates and origination of new loans at higher rates contributed to the increase.
•The average rate paid on interest bearing deposits increased to 1.14% for the quarter ended September 30, 2022, from 0.45% for the quarter ended June 30, 2022, primarily in response to the rising interest rate environment. Growth in time deposits as a percentage of interest bearing deposits also contributed to this increase, as we implemented a strategy to extend the term of interest bearing deposits.
•The average rate paid on FHLB advances increased to 2.25% for the quarter ended September 30, 2022, from 1.07% for the quarter ended June 30, 2022, primarily in response to the rising interest rate environment.
3

Non-interest income and Non-interest expense
Non-interest income totaled $23.1 million for the quarter ended September 30, 2022 compared to $13.5 million for the quarter ended June 30, 2022 and $25.5 million for the quarter ended September 30, 2021.
•Gain (loss) on investment securities was a net gain of $0.1 million for the quarter ended September 30, 2022, compared to a net loss of $(8.4) million for the quarter ended June 30, 2022, and a net loss of $(0.7) million for the quarter ended September 30, 2021. The net loss for the quarter ended June 30, 2022 was primarily attributable to a $9.3 million decrease in the fair value of certain preferred stock investments.
Non-interest expense increased by $10.7 million for the quarter ended September 30, 2022 compared to the quarter ended June 30, 2022. As expected, an increasing trend was reflected in the compensation and technology categories as we continue to invest in people and technology to support future growth.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, October 20, 2022 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BI4d0f0999272845dd996e3017ab4ea49a. For those unable to join the live event, an archived webcast will be available in the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.
About BankUnited, Inc.
BankUnited, Inc., with total assets of $36.6 billion at September 30, 2022, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 58 banking centers in 12 Florida counties, 4 banking centers in the New York metropolitan area, and 1 banking center located in Dallas, Texas.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. 
The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control. 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, 2021 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov).
Contact
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak, 786-313-1698, llunak@bankunited.com
Source: BankUnited, Inc.
4

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data) 
September 30,
2022		December 31,
2021
ASSETS  
Cash and due from banks:  
Non-interest bearing$18,380 $19,143 
Interest bearing707,758 295,714 
Cash and cash equivalents 726,138 314,857 
Investment securities (including securities recorded at fair value of $9,787,427 and $10,054,198)9,797,427 10,064,198 
Non-marketable equity securities261,784 135,859 
Loans24,266,732 23,765,053 
Allowance for credit losses (130,671)(126,457)
Loans, net24,136,061 23,638,596 
Bank owned life insurance 308,176 309,477 
Operating lease equipment, net579,693 640,726 
Goodwill77,637 77,637 
Other assets707,978 634,046 
Total assets$36,594,894 $35,815,396 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Demand deposits:  
Non-interest bearing$8,794,109 $8,975,621 
Interest bearing2,341,342 3,709,493 
Savings and money market12,513,398 13,368,745 
Time3,700,226 3,384,243 
Total deposits27,349,075 29,438,102 
Federal funds purchased— 199,000 
FHLB advances5,295,000 1,905,000 
Notes and other borrowings721,045 721,416 
Other liabilities748,789 514,117 
Total liabilities 34,113,909 32,777,635 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 77,599,408 and 85,647,986 shares issued and outstanding
776 856 
Paid-in capital381,411 707,503 
Retained earnings2,506,539 2,345,342 
Accumulated other comprehensive loss(407,741)(15,940)
Total stockholders' equity 2,480,985 3,037,761 
Total liabilities and stockholders' equity $36,594,894 $35,815,396 

5

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
Three Months EndedNine Months Ended
 September 30,June 30,September 30,September 30,September 30,
 20222022202120222021
Interest income:  
Loans$244,884 $209,223 $194,689 $645,669 $602,544 
Investment securities77,109 54,771 38,243 174,928 114,418 
Other4,031 2,979 1,413 8,364 4,613 
Total interest income 326,024 266,973 234,345 828,961 721,575 
Interest expense:
Deposits53,206 20,501 14,273 85,569 53,965 
Borrowings36,982 21,056 24,950 73,498 77,937 
Total interest expense 90,188 41,557 39,223 159,067 131,902 
Net interest income before provision for credit losses 235,836 225,416 195,122 669,894 589,673 
Provision for (recovery of) credit losses 3,720 23,996 (11,842)35,546 (67,365)
Net interest income after provision for credit losses 232,116 201,420 206,964 634,348 657,038 
Non-interest income:
Deposit service charges and fees6,064 5,896 5,553 17,920 15,870 
Gain (loss) on investment securities, net135 (8,392)(664)(16,125)5,856 
Lease financing13,180 13,363 13,212 39,958 39,222 
Other non-interest income3,693 2,583 7,377 9,070 27,583 
Total non-interest income 23,072 13,450 25,478 50,823 88,531 
Non-interest expense:
Employee compensation and benefits66,097 62,461 57,224 195,646 172,971 
Occupancy and equipment 11,719 11,399 11,760 34,630 35,127 
Deposit insurance expense4,398 3,993 3,552 11,794 15,224 
Professional fees 3,184 3,256 2,312 8,702 6,363 
Technology19,813 17,898 16,687 54,715 49,279 
Depreciation of operating lease equipment12,646 12,585 12,944 37,841 37,995 
Other non-interest expense20,248 15,810 13,563 48,503 42,756 
Total non-interest expense 138,105 127,402 118,042 391,831 359,715 
Income before income taxes117,083 87,468 114,400 293,340 385,854 
Provision for income taxes29,233 21,704 27,459 72,576 96,125 
Net income$87,850 $65,764 $86,941 $220,764 $289,729 
Earnings per common share, basic$1.13 $0.82 $0.94 $2.73 $3.12 
Earnings per common share, diluted$1.12 $0.82 $0.94 $2.71 $3.12 

6

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Three Months Ended September 30, 2022Three Months Ended June 30, 2022Three Months Ended September 30, 2021
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans$24,053,742 $248,168 4.11 %$23,709,190 $212,395 3.59 %$22,879,654 $197,995 3.45 %
Investment securities (3)
9,981,486 77,840 3.12 %10,477,600 55,488 2.12 %10,452,255 38,939 1.49 %
Other interest earning assets596,879 4,031 2.68 %718,904 2,979 1.66 %750,700 1,413 0.75 %
Total interest earning assets34,632,107 330,039 3.80 %34,905,694 270,862 3.11 %34,082,609 238,347 2.79 %
Allowance for credit losses(133,828)(127,864)(171,381)
Non-interest earning assets1,703,371 1,669,689 1,856,608 
Total assets$36,201,650 $36,447,519 $35,767,836 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$2,306,906 $4,104 0.71 %$2,576,257 $1,742 0.27 %$3,038,038 $1,701 0.22 %
Savings and money market deposits13,001,566 39,838 1.22 %13,052,566 15,213 0.47 %13,554,572 10,029 0.29 %
Time deposits3,255,869 9,264 1.13 %2,812,988 3,546 0.51 %2,866,746 2,543 0.35 %
Total interest bearing deposits18,564,341 53,206 1.14 %18,441,811 20,501 0.45 %19,459,356 14,273 0.29 %
Federal funds purchased153,905 833 2.12 %115,146 155 0.53 %70,054 15 0.08 %
FHLB advances4,739,457 26,890 2.25 %4,373,736 11,644 1.07 %2,647,314 15,678 2.35 %
Notes and other borrowings721,164 9,259 5.14 %721,284 9,257 5.13 %721,638 9,257 5.13 %
Total interest bearing liabilities24,178,867 90,188 1.48 %23,651,977 41,557 0.70 %22,898,362 39,223 0.68 %
Non-interest bearing demand deposits8,749,794 9,419,025 8,912,960 
Other non-interest bearing liabilities697,440 654,162 752,774 
Total liabilities33,626,101 33,725,164 32,564,096 
Stockholders' equity2,575,549 2,722,355 3,203,740 
Total liabilities and stockholders' equity$36,201,650 $36,447,519 $35,767,836 
Net interest income$239,851 $229,305 $199,124 
Interest rate spread2.32 %2.41 %2.11 %
Net interest margin2.76 %2.63 %2.33 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    At fair value except for securities held to maturity










7

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Nine Months Ended September 30,
20222021
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans $23,706,606 $655,114 3.69 %$23,139,389 $612,756 3.54 %
Investment securities (3)
10,180,351 177,047 2.32 %9,792,350 116,464 1.59 %
Other interest earning assets663,189 8,364 1.69 %1,063,476 4,613 0.58 %
Total interest earning assets34,550,146 840,525 3.25 %33,995,215 733,833 2.88 %
Allowance for credit losses(130,258)(213,352)
Non-interest earning assets1,682,618 1,771,639 
Total assets$36,102,506 $35,553,502 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$2,658,558 7,215 0.36 %$3,017,301 7,069 0.31 %
Savings and money market deposits13,150,357 62,704 0.64 %13,299,066 33,463 0.34 %
Time deposits3,129,247 15,650 0.67 %3,520,674 13,433 0.51 %
Total interest bearing deposits18,938,162 85,569 0.60 %19,837,041 53,965 0.36 %
Federal funds purchased152,028 1,046 0.92 %26,245 17 0.09 %
FHLB advances3,796,484 44,680 1.57 %2,863,093 50,158 2.34 %
Notes and other borrowings721,283 27,772 5.13 %721,897 27,762 5.13 %
Total interest bearing liabilities23,607,957 159,067 0.90 %23,448,276 131,902 0.75 %
Non-interest bearing demand deposits9,071,135 8,194,570 
Other non-interest bearing liabilities650,936 783,618 
Total liabilities33,330,028 32,426,464 
Stockholders' equity2,772,478 3,127,038 
Total liabilities and stockholders' equity$36,102,506 $35,553,502 
Net interest income$681,458 $601,931 
Interest rate spread2.35 %2.13 %
Net interest margin2.63 %2.36 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    At fair value except for securities held to maturity



















8


BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
c2022202120222021
Basic earnings per common share: 
Numerator:
Net income$87,850 $86,941 $220,764 $289,729 
Distributed and undistributed earnings allocated to participating securities
(1,343)(1,112)(3,258)(3,701)
Income allocated to common stockholders for basic earnings per common share$86,507 $85,829 $217,506 $286,028 
Denominator:
Weighted average common shares outstanding77,912,320 92,053,714 81,039,561 92,787,824 
Less average unvested stock awards(1,221,971)(1,208,304)(1,230,396)(1,218,416)
Weighted average shares for basic earnings per common share76,690,349 90,845,410 79,809,165 91,569,408 
Basic earnings per common share$1.13 $0.94 $2.73 $3.12 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share$86,507 $85,829 $217,506 $286,028 
Adjustment for earnings reallocated from participating securities
6 2 9 5 
Income used in calculating diluted earnings per common share$86,513 $85,831 $217,515 $286,033 
Denominator:
Weighted average shares for basic earnings per common share76,690,349 90,845,410 79,809,165 91,569,408 
Dilutive effect of certain share-based awards433,472 182,448 308,608 152,675 
Weighted average shares for diluted earnings per common share
77,123,821 91,027,858 80,117,773 91,722,083 
Diluted earnings per common share$1.12 $0.94 $2.71 $3.12 

9


BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Financial ratios (4)
  
Return on average assets0.96 %0.96 %0.82 %1.09 %
Return on average stockholders’ equity13.5 %10.8 %10.6 %12.4 %
Net interest margin (3)
2.76 %2.33 %2.63 %2.36 %
 September 30, 2022December 31, 2021
Asset quality ratios  
Non-performing loans to total loans (1)(5)
0.64 %0.87 %
Non-performing assets to total assets (2)(5)
0.43 %0.58 %
Allowance for credit losses to total loans0.54 %0.53 %
Allowance for credit losses to non-performing loans (1)(5)
83.54 %61.41 %
Net charge-offs to average loans (4)
0.16 %0.29 %
(1)    We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.
(2)    Non-performing assets include non-performing loans, OREO and other repossessed assets.
(3)    On a tax-equivalent basis.
(4) Annualized for the three and nine month periods.
(5)    Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.8 million or 0.17% of total loans and 0.11% of total assets at September 30, 2022 and $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021.

September 30, 2022December 31, 2021Required to be Considered Well Capitalized
BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.
Capital ratios
Tier 1 leverage7.7 %8.8 %8.4 %9.6 %5.0 %
Common Equity Tier 1 ("CET1") risk-based capital11.3 %12.9 %12.6 %14.5 %6.5 %
Total risk-based capital13.0 %13.4 %14.3 %14.9 %10.0 %
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Non-GAAP Financial Measures
ACL to total loans, excluding government insured residential loans, PPP loans and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands):
September 30, 2022June 30, 2022December 31, 2021
Total loans (GAAP)$24,266,732$24,100,014$23,765,053
Less: Government insured residential loans1,849,3431,928,7792,023,221
Less: PPP loans10,19129,828248,505
Less: MWL622,883816,7971,092,133
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)$21,784,315$21,324,610$20,401,194
ACL$130,671$130,239$126,457
ACL to total loans (GAAP)0.54 %0.54 %0.53 %
ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)0.60 %0.61 %0.62 %

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