BankUnited, Inc. Reports 2023 Results

BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2023.

"We finished the year with continued improvement on both sides of our balance sheet, expanding margin and strong credit performance. We are benefiting from a strong economy in our primary market and are looking forward to 2024 with great optimism," said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended December 31, 2023, the Company reported net income of $20.8 million, or $0.27 per diluted share, compared to $47.0 million, or $0.63 per diluted share, for the immediately preceding quarter ended September 30, 2023 and $64.2 million, or $0.82 per diluted share, for the quarter ended December 31, 2022. For the year ended December 31, 2023, the Company reported net income of $178.7 million, or $2.38 per diluted share, compared to $285.0 million, or $3.54 per diluted share, for the year ended December 31, 2022. Results for the quarter ended December 31, 2023 were negatively impacted by $41.8 million of notable items impacting income before taxes, related to the FDIC special assessment and a loss on sale of operating lease equipment as detailed below.

Quarterly Highlights

• Two notable items totaling $41.8 million impacted income before income taxes for the quarter ended December 31, 2023 (in thousands):

	FDIC special assessment	$	35,356
	Loss on sale of operating lease equipment		6,479
		$	41,835

The loss on sale of operating lease equipment of $6.5 million compares to a gain of $4.2 million on sale of operating lease equipment in the immediately preceding quarter, for a variance of $10.7 million.

• We continued to execute on near-term strategic priorities this quarter:
  • The net interest margin, calculated on a tax-equivalent basis, expanded this quarter to 2.60% from 2.56% for the immediately preceding quarter.
  • Non-brokered deposits grew by $604 million for the quarter ended December 31, 2023. Total deposits grew by $426 million.
  • Non-interest bearing deposits declined by $521 million for the quarter, to 26% of total deposits at December 31, 2023, from 28% at September 30, 2023. On an average basis, non-interest bearing deposits were relatively flat to the prior quarter, declining by only $28.5 million. Most of the period-end decline was attributable to quarter-end outflows related to seasonality in the residential real estate sector, impacting our title solutions vertical and other mortgage related deposits.
  • Residential loans declined by $172 million for the quarter, while our core C&I and commercial real estate portfolios grew by a total of $476 million. Since December 31, 2022, residential loans have declined by $692 million.
  • The amortized cost of the investment securities portfolio declined by $106 million during the quarter ended December 31, 2023 and has declined by $959 million since December 31, 2022.
  • Wholesale funding, including FHLB advances and brokered deposits, declined by $228 million for the quarter. We have paid down FHLB advances by $2.4 billion since March 31, 2023.
  • Liquidity remains ample. Total same day available liquidity was $13.6 billion, the available liquidity to uninsured, uncollateralized deposits ratio was 152% and an estimated 66% of our deposits were insured or collateralized at December 31, 2023.
  • Our capital position is robust. At December 31, 2023, CET1 was 11.4% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was 10.0% at December 31, 2023. The ratio of tangible common equity/tangible assets increased to 7.0% at December 31, 2023.
• For the quarter ended December 31, 2023, the provision for credit losses was $19.3 million compared to $33.0 million for the immediately preceding quarter. The ratio of the ACL to total loans increased to 0.82% at December 31, 2023, from 0.80% at September 30, 2023.
• The net charge-off ratio for the year ended December 31, 2023 was 0.09%. NPAs remained low, totaling $130.6 million at December 31, 2023, down from $140.5 million at September 30, 2023. The NPA ratio at December 31, 2023 declined to 0.37%, including 0.12% related to the guaranteed portion of non-performing SBA loans, from 0.40%, including 0.11% related to the guaranteed portion of non-performing SBA loans at September 30, 2023.
• As expected in the current macro-environment, the average cost of total deposits increased to 2.96% for the quarter ended December 31, 2023 from 2.74% for the immediately preceding quarter. This increase of 0.22% was smaller than the 0.28% increase in the cost of deposits for the quarter ended September 30, 2023, continuing the trend of a declining rate of increase in deposit costs. The yield on average interest earning assets increased to 5.70% for the quarter ended December 31, 2023 from 5.52% for the immediately preceding quarter.
• Our commercial real estate exposure is modest. Commercial real estate loans totaled 23.6% of loans at December 31, 2023, representing 169% of the Bank's total risk based capital. At December 31, 2023, the weighted average LTV of the CRE portfolio was 56.0% and the weighted average DSCR was 1.80. 58% of the portfolio was secured by collateral properties located in Florida and 25% was secured by properties in the New York tri-state area.
• We remain committed to keeping the duration of our securities portfolio short; the duration of the available for sale securities portfolio was 1.96 at December 31, 2023. Held to maturity securities were not significant.
• The net unrealized pre-tax loss on the securities portfolio improved by $109 million for the quarter ended December 31, 2023, now representing 6% of amortized cost. AOCI improved by $50 million.
• Book value and tangible book value per common share continued to grow, to $34.66 and $33.62, respectively, at December 31, 2023, compared to $33.92 and $32.88, respectively, at September 30, 2023 and $32.19 and $31.16, respectively, at December 31, 2022.

Loans

A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):

	December 31, 2023						September 30, 2023						December 31, 2022
Residential	$	8,209,027		33.3	%		$	8,380,568		34.4	%		$	8,900,714		35.7	%
Non-owner occupied commercial real estate		5,323,241		21.6	%			5,296,784		21.7	%			5,405,597		21.7	%
Construction and land		495,992		2.0	%			445,273		1.8	%			294,360		1.2	%
Owner occupied commercial real estate		1,935,743		7.9	%			1,851,246		7.6	%			1,890,813		7.6	%
Commercial and industrial		6,971,981		28.3	%			6,658,010		27.4	%			6,417,721		25.9	%
Pinnacle - municipal finance		884,690		3.6	%			900,199		3.7	%			912,122		3.7	%
Franchise finance		182,408		0.7	%			196,745		0.8	%			253,774		1.0	%
Equipment finance		197,939		0.8	%			219,874		0.9	%			286,147		1.1	%
Mortgage warehouse lending ("MWL")		432,663		1.8	%			407,577		1.7	%			524,740		2.1	%
	$	24,633,684		100.0	%		$	24,356,276		100.0	%		$	24,885,988		100.0	%

Consistent with our balance sheet strategy, for the quarter ended December 31, 2023, residential loans declined by $172 million, while C&I grew by $399 million, CRE grew by $77 million and MWL grew by $25 million. Franchise, equipment and municipal finance declined by $52 million in aggregate.

Asset Quality and the Allowance for Credit Losses ("ACL")

The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the periods ended December 31, 2023, September 30, 2023 and December 31, 2022 (dollars in thousands):

	ACL			ACL to Total Loans			ACL to Non- Performing Loans			Net Charge-offs to Average Loans (1)
December 31, 2022	$	147,946		0.59	%		140.88	%		0.22	%
September 30, 2023	$	196,063		0.80	%		143.22	%		0.07	%
December 31, 2023	$	202,689		0.82	%		159.54	%		0.09	%

____________

(1) Annualized for the nine months ended September 30, 2023.

The ACL at December 31, 2023 represents management's estimate of lifetime expected credit losses given an assessment of historical data, current conditions, and a reasonable and supportable economic forecast as of the balance sheet date. For the quarter ended December 31, 2023, the provision for credit losses was $19.3 million, including $16.3 million related to funded loans. Factors impacting the provision for credit losses and increase in the ACL for the quarter ended December 31, 2023 included the shift in balance sheet composition toward commercial loan categories that typically carry higher reserves and risk rating migration.

The following table summarizes the activity in the ACL for the periods indicated (in thousands):

	Three Months Ended December 31,								Years Ended December 31,
	2023				2022				2023				2022
Beginning balance	$	196,063			$	130,671			$	147,946			$	126,457
Impact of adoption of new accounting pronouncement (ASU 2022-02)		N/A				N/A				(1,794	)			N/A
Balance after impact of adoption of new accounting pronouncement (ASU 2022-02)		196,063				130,671				146,152				126,457
Provision		16,257				40,408				78,924				73,814
Net charge-offs		(9,631	)			(23,133	)			(22,387	)			(52,325	)
Ending balance	$	202,689			$	147,946			$	202,689			$	147,946

Non-performing loans totaled $127.0 million or 0.52% of total loans at December 31, 2023, compared to $136.9 million or 0.56% of total loans at September 30, 2023. Non-performing loans included $41.8 million and $37.8 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.17% and 0.16% of total loans at December 31, 2023 and September 30, 2023, respectively.

The following table presents criticized and classified commercial loans at the dates indicated (in thousands):

	December 31, 2023			September 30, 2023			December 31, 2022
Special mention	$	319,905		$	341,999		$	51,433
Substandard - accruing		711,266			534,336			605,965
Substandard - non-accruing		86,903			96,248			75,125
Doubtful		19,035			19,344			7,990
Total	$	1,137,109		$	991,927		$	740,513

The increase in the substandard accruing category for the quarter ended December 31, 2023 included $74 million of C&I and $118 million of CRE. All of these loans are performing. The substantial majority of the increase was attributable to a small number of loans. Increasing operating costs, including insurance and interest costs, and higher vacancy rates for some office properties were contributing factors.

Net Interest Income

Net interest income for the quarter ended December 31, 2023 was $217.2 million, compared to $214.8 million for the immediately preceding quarter ended September 30, 2023 and $243.1 million for the quarter ended December 31, 2022. Interest income increased by $12.7 million for the quarter ended December 31, 2023 compared to the immediately preceding quarter, while interest expense increased by $10.3 million.

The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.04% to 2.60% for the quarter ended December 31, 2023, from 2.56% for the immediately preceding quarter ended September 30, 2023. Factors impacting the net interest margin for the quarter ended December 31, 2023 were:

• The tax-equivalent yield on loans increased to 5.69% for the quarter ended December 31, 2023, from 5.54% for the quarter ended September 30, 2023. This increase reflects the origination of new loans at higher rates, re-positioning of the portfolio and to a lesser extent, the resetting of variable rate loans to higher coupon rates.
• The tax-equivalent yield on investment securities increased to 5.73% for the quarter ended December 31, 2023, from 5.48% for the quarter ended September 30, 2023. Factors leading to this increase included the reset of coupon rates on variable rate securities and retrospective accounting adjustments related to prepayment speeds on certain securities.
• The average cost of interest bearing deposits increased to 4.04% for the quarter ended December 31, 2023 from 3.76% for the quarter ended September 30, 2023, a continuing response to the higher interest rate environment.
• The reduction in the proportion of total funding comprised of more expensive wholesale funding also contributed to the increase in the net interest margin.

Non-interest income and Non-interest expense

Non-interest income totaled $17.1 million for the quarter ended December 31, 2023, compared to $27.7 million for the quarter ended September 30, 2023. The decrease compared to the quarter ended September 30, 2023 was primarily attributable to a $6.5 million loss on sale of lease equipment during the quarter ended December 31, 2023 compared to a $4.2 million gain on sale of lease equipment during the prior quarter.

Non-interest expense totaled $190.9 million for the quarter ended December 31, 2023, compared to $147.1 million for the immediately preceding quarter ended September 30, 2023. The increase over the prior quarter was primarily attributable to a $35.4 million FDIC special assessment recorded during the quarter ended December 31, 2023. The increase in compensation and benefits for the quarter ended December 31, 2023 compared to the immediately preceding quarter primarily resulted from an increase in the Company's stock price, impacting the value of liability-classified share based compensation awards.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Friday, January 26, 2024 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/BI50a5352f746b4dc890465ca3d32e6db .... 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 $35.8 billion at December 31, 2023, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida that provides a full range of banking and related services to individual and corporate customers through banking centers located in the state of Florida, the New York metropolitan area and Dallas, Texas, and a comprehensive suite of wholesale products to customers through an Atlanta office focused on the Southeast region. BankUnited also offers certain commercial lending and deposit products through national platforms. For additional information, call [phone] or visit www.BankUnited.com.

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 limitation) 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, such as but not limited to adverse events or conditions impacting the financial services industry. 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, 2022 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).

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data)
	December 31, 2023				September 30, 2023				December 31, 2022
ASSETS
Cash and due from banks:
Non-interest bearing	$	14,945			$	12,391			$	16,068
Interest bearing		573,338				379,494				556,579
Cash and cash equivalents		588,283				391,885				572,647
Investment securities (including securities reported at fair value of $8,867,354, $8,876,484 and $9,745,327)		8,877,354				8,886,484				9,755,327
Non-marketable equity securities		310,084				312,159				294,172
Loans		24,633,684				24,356,276				24,885,988
Allowance for credit losses		(202,689	)			(196,063	)			(147,946	)
Loans, net		24,430,995				24,160,213				24,738,042
Bank owned life insurance		318,459				319,808				308,212
Operating lease equipment, net		371,909				460,146				539,799
Goodwill		77,637				77,637				77,637
Other assets		786,886				781,332				740,876
Total assets	$	35,761,607			$	35,389,664			$	37,026,712
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Demand deposits:
Non-interest bearing	$	6,835,236			$	7,356,523			$	8,037,848
Interest bearing		3,403,539				3,290,391				2,142,067
Savings and money market		11,135,708				10,276,071				13,061,341
Time		5,163,995				5,189,681				4,268,078
Total deposits		26,538,478				26,112,666				27,509,334
Federal funds purchased		—				—				190,000
FHLB advances		5,115,000				5,165,000				5,420,000
Notes and other borrowings		708,973				715,197				720,923
Other liabilities		821,235				872,731				750,474
Total liabilities		33,183,686				32,865,594				34,590,731
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,372,505, 74,413,059 and 75,674,587 shares issued and outstanding		744				744				757
Paid-in capital		283,642				279,672				321,729
Retained earnings		2,650,956				2,650,850				2,551,400
Accumulated other comprehensive loss		(357,421	)			(407,196	)			(437,905	)
Total stockholders' equity		2,577,921				2,524,070				2,435,981
Total liabilities and stockholders' equity	$	35,761,607			$	35,389,664			$	37,026,712

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
	Three Months Ended									Years Ended
	December 31,			September 30,			December 31,			December 31,				December 31,
	2023			2023			2022			2023				2022
Interest income:
Loans	$	346,255		$	337,014		$	288,973		$	1,318,217			$	934,642
Investment securities		125,993			122,857			105,172			488,212				280,100
Other		10,957			10,668			7,345			51,152				15,709
Total interest income		483,205			470,539			401,490			1,857,581				1,230,451
Interest expense:
Deposits		192,833			176,974			94,403			660,305				179,972
Borrowings		73,162			78,723			64,021			323,472				137,519
Total interest expense		265,995			255,697			158,424			983,777				317,491
Net interest income before provision for credit losses		217,210			214,842			243,066			873,804				912,960
Provision for credit losses		19,253			33,049			39,608			87,607				75,154
Net interest income after provision for credit losses		197,957			181,793			203,458			786,197				837,806
Non-interest income:
Deposit service charges and fees		5,386			5,402			5,482			21,682				23,402
Gain (loss) on investment securities, net		617			887			320			(10,052	)			(15,805	)
Lease financing		3,723			16,531			14,153			45,882				54,111
Other non-interest income		7,366			4,904			6,858			29,326				15,928
Total non-interest income		17,092			27,724			26,813			86,838				77,636
Non-interest expense:
Employee compensation and benefits		73,454			68,825			69,902			280,744				265,548
Occupancy and equipment		10,610			10,890			10,770			43,345				45,400
Deposit insurance expense		43,453			7,790			6,205			66,747				17,999
Professional fees		5,052			2,696			3,028			14,184				11,730
Technology		18,628			19,193			22,388			79,984				77,103
Depreciation of operating lease equipment		10,476			11,217			12,547			44,446				50,388
Other non-interest expense		29,190			26,479			23,639			106,501				72,142
Total non-interest expense		190,863			147,090			148,479			635,951				540,310
Income before income taxes		24,186			62,427			81,792			237,084				375,132
Provision for income taxes		3,374			15,446			17,585			58,413				90,161
Net income	$	20,812		$	46,981		$	64,207		$	178,671			$	284,971
Earnings per common share, basic	$	0.27		$	0.63		$	0.83		$	2.39			$	3.55
Earnings per common share, diluted	$	0.27		$	0.63		$	0.82		$	2.38			$	3.54

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
	Three Months Ended December 31,										Three Months Ended September 30,										Three Months Ended December 31,
	2023										2023										2022
	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	$	24,416,013			$	349,603		5.69	%		$	24,417,433			$	340,357		5.54	%		$	24,624,062			$	292,272		4.72	%
Investment securities (3)		8,850,397				126,870		5.73	%			9,034,116				123,794		5.48	%			9,788,969				106,034		4.33	%
Other interest earning assets		801,833				10,957		5.42	%			785,146				10,668		5.39	%			710,315				7,345		4.10	%
Total interest earning assets		34,068,243				487,430		5.70	%			34,236,695				474,819		5.52	%			35,123,346				405,651		4.60	%
Allowance for credit losses		(198,984	)									(173,407	)									(137,300	)
Non-interest earning assets		1,715,795										1,747,310										1,837,156
Total assets	$	35,585,054									$	35,810,598									$	36,823,202
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits	$	3,433,216			$	31,978		3.70	%		$	3,038,870			$	25,491		3.33	%		$	2,183,854			$	6,704		1.22	%
Savings and money market deposits		10,287,945				104,188		4.02	%			10,205,765				97,956		3.81	%			12,054,892				68,001		2.24	%
Time deposits		5,225,756				56,667		4.30	%			5,420,522				53,527		3.92	%			3,960,111				19,698		1.97	%
Total interest bearing deposits		18,946,917				192,833		4.04	%			18,665,157				176,974		3.76	%			18,198,857				94,403		2.06	%
Federal funds purchased		—				—		—	%			—				—		—	%			175,637				1,677		3.74	%
FHLB advances		5,545,978				64,034		4.58	%			6,040,870				69,525		4.57	%			6,125,435				53,084		3.44	%
Notes and other borrowings		711,073				9,128		5.13	%			715,307				9,198		5.14	%			721,044				9,260		5.14	%
Total interest bearing liabilities		25,203,968				265,995		4.19	%			25,421,334				255,697		3.99	%			25,220,973				158,424		2.49	%
Non-interest bearing demand deposits		6,909,027										6,937,537										8,237,885
Other non-interest bearing liabilities		903,099										868,178										879,207
Total liabilities		33,016,094										33,227,049										34,338,065
Stockholders' equity		2,568,960										2,583,549										2,485,137
Total liabilities and stockholders' equity	$	35,585,054									$	35,810,598									$	36,823,202
Net interest income					$	221,435									$	219,122									$	247,227
Interest rate spread								1.51	%									1.53	%									2.11	%
Net interest margin								2.60	%									2.56	%									2.81	%

____________

(1)	On a tax-equivalent basis where applicable
(2)	Annualized
(3)	At fair value except for securities held to maturity

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
	Years Ended December 31,
	2023										2022
	Average Balance				Interest (1)			Yield/ Rate (1)			Average Balance				Interest (1)			Yield/ Rate (1)
Assets:
Interest earning assets:
Loans	$	24,558,430			$	1,331,578		5.42	%		$	23,937,857			$	947,386		3.96	%
Investment securities (2)		9,228,718				491,851		5.33	%			10,081,701				283,081		2.81	%
Other interest earning assets		986,186				51,152		5.19	%			675,068				15,709		2.33	%
Total interest earning assets		34,773,334				1,874,581		5.39	%			34,694,626				1,246,176		3.59	%
Allowance for credit losses		(171,618	)									(132,033	)
Non-interest earning assets		1,749,981										1,721,570
Total assets	$	36,351,697									$	36,284,163
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits	$	2,905,968			$	86,759		2.99	%		$	2,538,906			$	13,919		0.55	%
Savings and money market deposits		10,704,470				382,432		3.57	%			12,874,240				130,705		1.02	%
Time deposits		5,169,458				191,114		3.70	%			3,338,671				35,348		1.06	%
Total interest bearing deposits		18,779,896				660,305		3.52	%			18,751,817				179,972		0.96	%
Federal funds purchased		35,403				1,611		4.55	%			157,979				2,723		1.72	%
FHLB advances		6,331,685				285,026		4.50	%			4,383,507				97,763		2.23	%
Notes and other borrowings		716,633				36,835		5.14	%			721,223				37,033		5.13	%
Total interest bearing liabilities		25,863,617				983,777		3.80	%			24,014,526				317,491		1.32	%
Non-interest bearing demand deposits		7,091,029										8,861,111
Other non-interest bearing liabilities		848,023										708,473
Total liabilities		33,802,669										33,584,110
Stockholders' equity		2,549,028										2,700,053
Total liabilities and stockholders' equity	$	36,351,697									$	36,284,163
Net interest income					$	890,804									$	928,685
Interest rate spread								1.59	%									2.27	%
Net interest margin								2.56	%									2.68	%

____________

(1)	On a tax-equivalent basis where applicable
(2)	At fair value except for securities held to maturity

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)
	Three Months Ended December 31,								Years Ended December 31,
	2023				2022				2023				2022
Basic earnings per common share:
Numerator:
Net income	$	20,812			$	64,207			$	178,671			$	284,971
Distributed and undistributed earnings allocated to participating securities		(930	)			(1,519	)			(3,565	)			(5,075	)
Income allocated to common stockholders for basic earnings per common share	$	19,882			$	62,688			$	175,106			$	279,896
Denominator:
Weighted average common shares outstanding		74,384,185				77,043,587				74,493,898				80,032,356
Less average unvested stock awards		(1,130,715	)			(1,207,275	)			(1,168,004	)			(1,224,568	)
Weighted average shares for basic earnings per common share		73,253,470				75,836,312				73,325,894				78,807,788
Basic earnings per common share	$	0.27			$	0.83			$	2.39			$	3.55
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share	$	19,882			$	62,688			$	175,106			$	279,896
Adjustment for earnings reallocated from participating securities		—				(184	)			(275	)			(626	)
Income used in calculating diluted earnings per common share	$	19,882			$	62,504			$	174,831			$	279,270
Denominator:
Weighted average shares for basic earnings per common share		73,253,470				75,836,312				73,325,894				78,807,788
Dilutive effect of certain share-based awards		203,123				127				197,441				94
Weighted average shares for diluted earnings per common share		73,456,593				75,836,439				73,523,335				78,807,882
Diluted earnings per common share	$	0.27			$	0.82			$	2.38			$	3.54

BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
	At or for the Three Months Ended												Years Ended December 31,
	December 31, 2023				September 30, 2023				December 31, 2022				2023			2022
Financial ratios (4)
Return on average assets		0.23	%			0.52	%			0.69	%		0.49	%		0.79	%
Return on average stockholders’ equity		3.2	%			7.2	%			10.3	%		7.0	%		10.6	%
Net interest margin (3)		2.60	%			2.56	%			2.81	%		2.56	%		2.68	%
Loans to deposits		92.8	%			93.3	%			90.5	%
Tangible book value per common share	$	33.62			$	32.88			$	31.16

	December 31, 2023			September 30, 2023			December 31, 2022
Asset quality ratios
Non-performing loans to total loans (1)(5)	0.52	%		0.56	%		0.42	%
Non-performing assets to total assets (2)(5)	0.37	%		0.40	%		0.29	%
Allowance for credit losses to total loans	0.82	%		0.80	%		0.59	%
Allowance for credit losses to non-performing loans (1)(5)	159.54	%		143.22	%		140.88	%
Net charge-offs to average loans	0.09	%		0.07	%		0.22	%

____________

(1)	We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.
(2)	Non-performing assets include non-performing loans, OREO and other repossessed assets.
(3)	On a tax-equivalent basis.
(4)	Annualized for the three month periods.
(5)	Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.8 million or 0.17% of total loans and 0.12% of total assets at December 31, 2023, $37.8 million or 0.16% of total loans and 0.11% of total assets at September 30, 2023 and $40.3 million or 0.16% of total loans and 0.11% of total assets at December 31, 2022.

	December 31, 2023						December 31, 2022						Required to be Considered Well Capitalized
	BankUnited, Inc.			BankUnited, N.A.			BankUnited, Inc.			BankUnited, N.A.
Capital ratios
Tier 1 leverage	7.9	%		9.1	%		7.5	%		8.4	%		5.0	%
Common Equity Tier 1 ("CET1") risk-based capital	11.4	%		13.1	%		11.0	%		12.4	%		6.5	%
Total risk-based capital	13.4	%		13.9	%		12.7	%		12.9	%		10.0	%
Tangible Common Equity/Tangible Assets	7.0	%		N/A			6.4	%		N/A			N/A

Non-GAAP Financial Measures

Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data):

	December 31, 2023			September 30, 2023			December 31, 2022
Total stockholders’ equity	$	2,577,921		$	2,524,070		$	2,435,981
Less: goodwill and other intangible assets		77,637			77,637			77,637
Tangible stockholders’ equity	$	2,500,284		$	2,446,433		$	2,358,344
Common shares issued and outstanding		74,372,505			74,413,059			75,674,587
Book value per common share	$	34.66		$	33.92		$	32.19
Tangible book value per common share	$	33.62		$	32.88		$	31.16

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240126405177/en/

The BankUnited Stock at the time of publication of the news with a raise of +0,72 % to 27,80EUR on Tradegate stock exchange (25. Januar 2024, 22:26 Uhr).