SEC Filing | BankUnited, Inc.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2020 (July 29, 2020)

BankUnited, Inc.

(Exact name of registrant as specified in its charter)



Delaware	001-35039	27-0162450
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)



14817 Oak Lane,	Miami Lakes,	FL	33016
(Address of principal executive offices)			(Zip Code)

(Registrant’s telephone number, including area code): (305) 569-2000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:



Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock, $0.01 Par Value	BKU	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Item 2.02 Results of Operations and Financial Condition.

On July 29, 2020, BankUnited, Inc. (the “Company”) reported its results for the quarter ended June 30, 2020. A copy of the Company’s press release containing this information and slides containing supplemental information related to this release are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.





Exhibit Number	Description

99.1	Press release dated	July 29, 2020
99.2	Supplemental information relating to the press release dated	July 29, 2020

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.





Dated:	July 29, 2020	BANKUNITED, INC.

		/s/ Leslie N. Lunak
		Name:	Leslie N. Lunak
		Title:	Chief Financial Officer

EXHIBIT INDEX





Exhibit Number	Description

99.1	Press release dated	July 29, 2020
99.2	Supplemental information relating to the press release dated	July 29, 2020

Exhibit

Exhibit 99.1

BANKUNITED, INC. REPORTS SECOND QUARTER 2020 RESULTS

Miami Lakes, Fla. — July 29, 2020 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended June 30, 2020.

“Our financial performance was strong this quarter, in a very challenging environment. We continued to deliver for our customers, employees and shareholders," said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended June 30, 2020, the Company reported net income of $76.5 million, or $0.80 per diluted share, compared to $81.5 million, or $0.81 per diluted share, for the quarter ended June 30, 2019. On an annualized basis, results for the quarter ended June 30, 2020 generated a return on average stockholders' equity of 11.6% and a return on average assets of 0.90%.

For the six months ended June 30, 2020, the Company reported net income of $45.6 million, or $0.47 per diluted share, compared to $147.4 million, or $1.45 per diluted share, for the six months ended June 30, 2019. Results for the six months ended June 30, 2020 were negatively impacted by the application of the Current Expected Credit Losses ("CECL") accounting methodology, including the expected impact of COVID-19 on the provision for credit losses.

Financial Highlights

•

Pre-tax, pre-provision net revenue ("PPNR") improved by $37.3 million, or 44%, to $122.3 million for the quarter ended June 30, 2020 compared to $85.0 million for the immediately preceding quarter ended March 31, 2020 and by $16.2 million, compared to $106.1 million for the quarter ended June 30, 2019. Growth in PPNR for the quarter ended June 30, 2020 compared to the immediately preceding quarter resulted from (i) an increase of $9.8 million in net interest income; (ii) a $15.1 million increase in non-interest income; and (iii) a decrease of $12.5 million in non-interest expense. For the six months ended June 30, 2020 and 2019, PPNR was $207.3 million and $206.6 million, respectively.

•

The net interest margin, calculated on a tax-equivalent basis, increased to 2.39% for the quarter ended June 30, 2020 from 2.35% for the immediately preceding quarter. The yield on interest earnings assets declined by 0.44% while the cost of interest bearing liabilities declined by 0.60% for the quarter ended June 30, 2020 compared to the quarter ended March 31, 2020. The net interest margin was 2.52% for the quarter ended June 30, 2019.

•

The average cost of total deposits declined by 0.56% to 0.80% for the quarter ended June 30, 2020, from 1.36% for the immediately preceding quarter ended March 31, 2020. The cost of total deposits was 1.70% for the quarter ended June 30, 2019. On a spot basis, the average annual percentage yield ("APY") on total deposits declined to 0.65% at June 30, 2020 from 1.12% at March 31, 2020 and 1.42% at December 31, 2019.

•

The provision for credit losses totaled $25.4 million for the quarter ended June 30, 2020 compared to $125.4 million for the immediately preceding quarter ended March 31, 2020. The provision for credit losses was $150.8 million for the six months ended June 30, 2020. For the quarter and six months ended June 30, 2019, the Company recorded a provision for (recovery of) loan losses, under the incurred loss model, of $(2.7) million and $7.5 million, respectively.

•

Non-interest bearing demand deposits grew by $1.3 billion, or 28%, for the quarter ended June 30, 2020, to 23% of total deposits compared to 18% of total deposits at March 31, 2020. Total deposits increased by $1.1 billion during the quarter ended June 30, 2020. Average non-interest bearing demand deposits increased by $944.5 million for the quarter ended June 30, 2020 compared to the immediately preceding quarter, and by $1.4 billion compared to the quarter ended June 30, 2019. Growth in non-interest bearing demand deposits for the quarter ended June 30, 2020 was positively impacted by proceeds from Paycheck Protection Program ("PPP") loans.


•	Loans and leases, including operating lease equipment, grew by $656 million for the quarter ended June 30, 2020. Loan and lease growth for the quarter ended June 30, 2020 included growth of $827 million in PPP loans and $308

million in mortgage warehouse outstandings, partially offset by expected declines in certain other portfolio segments. We funded over 3,500 PPP loans totaling $876 million during the quarter ended June 30, 2020.


•	The net unrealized loss on investment securities available for sale improved to $2.6 million at June 30, 2020 from $249.8 million at March 31, 2020, in response to both declines in market rates and tightening spreads.

•

Stockholders' equity increased by $238.9 million during the quarter ended June 30, 2020 to $2.8 billion. The increase was driven by the recovery of $180.6 million in accumulated other comprehensive income related to the reduction in unrealized losses on investment securities available for sale and by the retention of earnings. At June 30, 2020, book value per common share and tangible book value per common share were $29.81 and $28.97, respectively.


•	During the quarter ended June 30, 2020, the Company completed an underwritten public offering of $300 million aggregate principal amount of its 5.125% subordinated notes, augmenting Tier 2 capital.

Capital

The Company's and BankUnited, N.A.'s regulatory capital ratios at June 30, 2020 and December 31, 2019 were as follows:



	June 30, 2020				December 31, 2019				Required to be Considered Well Capitalized
	BankUnited, Inc.		BankUnited, N.A.		BankUnited, Inc.		BankUnited, N.A.		Required to be Considered Well Capitalized
Tier 1 leverage	8.5	%	9.3	%	8.9	%	9.3	%	5.0	%
Common Equity Tier 1 ("CET1") risk-based capital	12.2	%	13.4	%	12.3	%	12.9	%	6.5	%
Total risk-based capital	14.3	%	14.3	%	12.8	%	13.4	%	10.0	%

On a fully-phased in basis with respect to the adoption of CECL, the Company's and the Bank's CET1 risk-based capital ratios would have been 11.9% and 13.2%, respectively, at June 30, 2020.

Loans and Leases

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



	June 30, 2020				March 31, 2020				December 31, 2019
Residential and other consumer loans	$	5,577,807	23.5	%	$	5,634,823	24.4	%	$	5,661,119	24.5	%
Multi-family	1,893,753		7.9	%	1,967,578		8.5	%	2,217,705		9.6	%
Non-owner occupied commercial real estate	4,940,531		20.7	%	4,987,798		21.5	%	5,030,904		21.7	%
Construction and land	246,609		1.0	%	222,223		1.0	%	243,925		1.1	%
Owner occupied commercial real estate	2,041,346		8.6	%	2,026,510		8.7	%	2,062,808		8.9	%
Commercial and industrial	4,691,326		19.7	%	5,008,573		21.6	%	4,655,349		20.1	%
PPP	827,359		3.5	%	—		—	%	—		—	%
Pinnacle	1,242,506		5.1	%	1,187,607		5.1	%	1,202,430		5.2	%
Bridge - franchise finance	623,139		2.6	%	647,699		2.7	%	627,482		2.6	%
Bridge - equipment finance	589,785		2.5	%	649,154		2.8	%	684,794		3.0	%
Mortgage warehouse lending ("MWL")	1,160,728		4.9	%	852,313		3.7	%	768,472		3.3	%
	$	23,834,889	100.0	%	$	23,184,278	100.0	%	$	23,154,988	100.0	%
Operating lease equipment, net	$	689,965			$	684,563			$	698,153

Loan and lease growth for the quarter ended June 30, 2020 was primarily driven by $827 million in PPP loans and a $308 million increase in mortgage warehouse outstandings. At June 30, 2020, mortgage warehouse commitments totaled $1.7 billion, with line utilization of 71%, compared to $1.3 billion at December 31, 2019, with line utilization of 59%. The decline in multi-

family balances was driven primarily by continued runoff of the New York portfolio. Commercial and industrial loans declined by $317 million, as a result of lower production, payoffs and lower line utilization.

At June 30, 2020, March 31, 2020 and December 31, 2019, the residential portfolio included $805 million, $760 million and $676 million, respectively, of GNMA early buyout loans. Residential activity for the quarter included purchases of approximately $243 million in GNMA early buyout loans, offset by approximately $199 million in re-poolings and paydowns. Residential and other consumer loans, excluding GNMA early buyout loans, experienced a net decline of approximately $101 million driven by higher prepayment speeds.

The following table presents loan portfolio sub-segments that, in light of current circumstances, were initially identified for enhanced monitoring and the amount within each of those sub-segments for which payment deferrals were granted (dollars in thousands):



	June 30, 2020
	Amount		% of Total Loans		Amount For Which A Payment Deferral Was Granted		% of Portfolio Segment
Retail exposure in the CRE portfolio	$	1,437,681	6.0	%	$	769,025	53.5	%
Retail exposure in the C&I portfolio ⁽¹⁾	332,421		1.4	%	68,299		20.5	%
Bridge - franchise finance	623,139		2.6	%	459,589		73.8	%
Hotel	620,673		2.6	%	536,826		86.5	%
Airlines and aviation authorities	163,846		0.7	%	—		—	%
Cruise lines	74,696		0.3	%	—		—	%
Energy ⁽²⁾	56,310		0.2	%	—		—	%
	$	3,308,766	13.8	%	$	1,833,739	55.4	%


(1)	Includes $222 million of owner-occupied commercial real estate loans.


(2)	There is also exposure to energy in the operating lease portfolio, primarily railcars, totaling $287 million at June 30, 2020.

The rate of re-deferral requests to date for these portfolio segments, in the aggregate is 17%, compared to the initial deferral rate of 55%.

Asset Quality and the Allowance for Credit Losses

The following table presents the allowance for credit losses ("ACL") at the dates indicated, related ACL coverage ratios, as well as net charge-off rates for the quarters ended June 30, 2020, March 31, 2020 and the year ended December 31, 2019 (dollars in thousands):



	ACL		ACL to Total Loans			ACL to Non-Performing Loans		Net Charge-offs to Average Loans ⁽¹⁾
December 31, 2019 (incurred loss)	$	108,671	0.47	%		53.07	%	0.05	%
January 1, 2020 (initial date of CECL adoption)	$	135,976	0.59	%		66.4	%	N/A
March 31, 2020 (expected loss)	$	250,579	1.08	%		126.41	%	0.13	%
June 30, 2020 (expected loss)	$	266,123	1.12	%	(2)	130.29	%	0.20	%


(1)	Annualized for the quarters ended June 30, 2020 and March 31, 2020.


(2)	ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 1.27% at June 30, 2020.

The ACL at June 30, 2020 represents management's estimate of lifetime expected credit losses from the loan portfolio given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in June 2020, economic information provided by additional sources, certain data obtained during the month of June reflecting the impact of recent events on individual

borrowers and other relevant information. For the quarter ended June 30, 2020, the Company recorded a provision for credit losses of $25.4 million, which included a reduction of $6.2 million related to unfunded loan commitments.

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Beginning balance	$	250,579		$	114,703		$	108,671		$	109,931
Cumulative effect of adoption of CECL	—			—			27,305			—
Balance after adoption of CECL	250,579			114,703			135,976			109,931
Provision (recovery)	31,584			(2,747		)	153,449			7,534
Charge-offs	(19,178		)	(1,711		)	(26,984		)	(7,844		)
Recoveries	3,138			1,896			3,682			2,520
Ending balance	$	266,123		$	112,141		$	266,123		$	112,141

Charge-offs for the quarter ended June 30, 2020 included $16.1 million related to one BFG franchise borrower.

Non-performing loans totaled $204.2 million or 0.86% of total loans at June 30, 2020, compared to $204.8 million or 0.88% of total loans at December 31, 2019. Non-performing loans included $45.7 million of the guaranteed portion of SBA loans on non-accrual status at both June 30, 2020 and December 31, 2019, representing 0.19% and 0.20% of total loans at June 30, 2020 and December 31, 2019, respectively.

Net interest income

Net interest income for the quarter ended June 30, 2020 increased to $190.3 million from $180.6 million for the immediately preceding quarter ended March 31, 2020 and was relatively flat to net interest income of $190.9 million for the quarter ended June 30, 2019. Interest income decreased by $26.4 million for the quarter ended June 30, 2020 compared to the immediately preceding quarter, and by $59.5 million, compared to the quarter ended June 30, 2019. Interest expense decreased by $36.1 million compared to the immediately preceding quarter and by $58.9 million compared to the quarter ended June 30, 2019. Decreases in both interest income and expense resulted from decreases in market interest rates, partially offset by the impact of increases in average interest earning assets and average interest bearing liabilities.

The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.04% to 2.39% for the quarter ended June 30, 2020, from 2.35% for the immediately preceding quarter ended March 31, 2020, and decreased from 2.52% for the quarter ended June 30, 2019. The Company's net interest margin, calculated on a tax-equivalent basis, was 2.37% for the six months ended June 30, 2020, compared to 2.53% for the six months ended June 30, 2019. The interest rate spread increased to 2.13% for the quarter ended June 30, 2020 from 1.97% for the quarter ended March 31, 2020 and 2.10% for the quarter ended June 30, 2019 as declines in the cost of interest bearing liabilities outpaced declines in the yield on interest earning assets.

The increase in the net interest margin for the quarter ended June 30, 2020 compared to the quarter ended March 31, 2020 resulted from the decline in the cost of interest bearing liabilities, particularly the cost of deposits, outpacing the decline in yields on interest earning assets. Offsetting factors contributing to the increase in the net interest margin for the quarter ended June 30, 2020 compared to the immediately preceding quarter ended March 31, 2020 included:

•

The most significant factor leading to the increase in the net interest margin for the quarter ended June 30, 2020 compared to the immediately preceding quarter was the decline in the cost of deposits. The average rate on interest bearing deposits decreased to 1.01% for the quarter ended June 30, 2020, from 1.66% for the quarter ended March 31, 2020. This decline reflected initiatives taken to lower rates paid on deposits following actions by the Fed in the fourth quarter of 2019 and first quarter of 2020. We expect the cost of interest bearing deposits to continue to decline; at June 30, 2020, approximately $2.3 billion or 35% of the time deposit portfolio, with an average rate of 1.91%, has not yet repriced since the last Fed rate cut.

For the quarter ended June 30, 2020, the increase in average non-interest bearing demand deposits as a percentage of average total deposits also positively impacted the cost of deposits and the net interest margin.


•	The average rate paid on borrowings declined to 1.97% for the quarter ended June 30, 2020, from 2.51% for the quarter ended March 31, 2020, reflecting declines in rates on overnight and short-term FHLB advances as well as the impact of PPPLF borrowings priced at rates lower than the average rate paid by the Company on its borrowings.

•

The tax-equivalent yield on loans decreased to 3.71% for the quarter ended June 30, 2020, from 4.18% for the quarter ended March 31, 2020. The most significant factor contributing to this decrease was the decline in benchmark interest rates, which impacted the level of prepayments of higher rate loans as well as rates earned on both existing floating rate assets and new production. The addition of lower yielding PPP loans to the balance sheet also contributed to the decline in the yield on loans.


•	The tax-equivalent yield on investment securities decreased to 2.48% for the quarter ended June 30, 2020 from 2.81% for the quarter ended March 31, 2020. The most significant factor contributing to this decrease was the impact of decreases in benchmark interest rates on both existing floating rate assets and new securities added to the portfolio.

Significant offsetting factors contributing to the decrease in the net interest margin for the quarter ended June 30, 2020 compared to the quarter ended June 30, 2019 included:


•	The average rate on interest bearing deposits decreased to 1.01% for the quarter ended June 30, 2020, from 2.04% for the quarter ended June 30, 2019,


•	The average rate on borrowings declined to 1.97% for the quarter ended June 30, 2020, from 2.62% for the quarter ended June 30, 2019.


•	The tax-equivalent yield on loans decreased to 3.71% for the quarter ended June 30, 2020, from 4.52% for the quarter ended June 30, 2019.


•	The tax-equivalent yield on investment securities decreased to 2.48% for the quarter ended June 30, 2020 from 3.61% for the quarter ended June 30, 2019. The most significant factors contributing to this decrease were the decreases in benchmark interest rates impacting new purchases of investments and re-pricing of variable rate securities, and to a lesser extent, increased prepayment speeds.

Non-interest income

Non-interest income increased to $38.4 million for the quarter ended June 30, 2020 from $23.3 million for the immediately preceding quarter ended March 31, 2020 and from $35.3 million for the quarter ended June 30, 2019. Non-interest income totaled $61.6 million and $71.6 million for the six months ended June 30, 2020 and 2019, respectively.

The main reason for the increase in non-interest income for the quarter ended June 30, 2020 compared to the quarter ended March 31, 2020 was an increase in gain on investment securities; gain on investment securities was $6.8 million for the quarter ended June 30, 2020 compared to a loss of $(3.5) million for the immediately preceding quarter. Non-interest income for the prior quarter included a $5.0 million unrealized loss on marketable equity securities, resulting from the impact on markets of the COVID-19 crisis, which improved to a $1.1 million unrealized gain for the quarter ended June 30, 2020.

The increase in non-interest income for the quarter ended June 30, 2020 compared to the corresponding period in 2019 was primarily related to increases in gains on investment securities and gains on sale of loans of $2.7 million and $2.2 million, respectively.

Deposit service charges for the quarter ended June 30, 2020 were impacted by fee waivers related to COVID-19 and to lower levels of activity, also related to COVID-19.

Non-interest expense

Non-interest expense declined by $12.5 million to $106.4 million for the quarter ended June 30, 2020 from $118.9 million for the immediately preceding quarter ended March 31, 2020 and by $13.7 million to $120.1 million for the quarter ended June 30, 2019. Non-interest expense totaled $225.2 million and $246.8 million for the six months ended June 30, 2020 and 2019, respectively, a decline of approximately 9%.

•

Employee compensation and benefits decreased by $10.0 million for the quarter ended June 30, 2020 compared to the immediately preceding quarter ended March 31, 2020. Compensation and benefits declined by $8.4 million and $14.7 million, respectively, for the quarter and six months ended June 30, 2020, compared to the corresponding periods in 2019. These decreases reflected reductions in headcount related to our BankUnited 2.0 initiative. Additionally, compensation cost for the quarter ended June 30, 2020 was reduced by (i) lower variable compensation costs, (ii) a decrease in equity based compensation expense related to the impact of a declining stock price on liability-classified awards and (iii) in comparison to the prior quarter, seasonally lower payroll taxes and benefits.


•	Professional fees decreased by $3.8 million and $8.5 million, respectively, for the quarter and six months ended June 30, 2020, primarily due to the consulting services in 2019 related to our BankUnited 2.0 initiative.


•	Costs incurred directly related to the implementation of our BankUnited 2.0 initiative during the six months ended June 30, 2020 and 2019 totaled $0.3 million and $12.1 million, respectively.


•	For both the quarter and six months ended June 30, 2020, non-interest expense included approximately $1.5 million in costs directly related to COVID-19.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Wednesday, July 29, 2020 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, and Chief Financial Officer, Leslie N. Lunak.

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 http://ir.bankunited.com/. The dial in telephone number for the call is (855) 798-3052 (domestic) or (234) 386-2812 (international). The name of the call is BankUnited, Inc. and the conference ID for the call is 4097326. A replay of the call will be available from 12:00 p.m. ET on July 29th through 11:59 p.m. ET on August 5th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 4097326. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.

About BankUnited, Inc.

BankUnited, Inc., with total assets of $34.7 billion at June 30, 2020, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 74 banking centers in 14 Florida counties and 5 banking centers in the New York metropolitan area at June 30, 2020.

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 the COVID-19 pandemic. 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, 2019 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.

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands, except share and per share data)



	June 30, 2020			December 31, 2019
ASSETS
Cash and due from banks:
Non-interest bearing	$	10,599		$	7,704
Interest bearing	391,632			206,969
Cash and cash equivalents	402,231			214,673
Investment securities (including securities recorded at fair value of $8,683,628 and $7,759,237)	8,693,628			7,769,237
Non-marketable equity securities	233,051			253,664
Loans held for sale	2,623			37,926
Loans	23,834,889			23,154,988
Allowance for credit losses	(266,123		)	(108,671		)
Loans, net	23,568,766			23,046,317
Bank owned life insurance	292,012			282,151
Operating lease equipment, net	689,965			698,153
Goodwill and other intangible assets	77,652			77,674
Other assets	785,971			491,498
Total assets	$	34,745,899		$	32,871,293

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Demand deposits:
Non-interest bearing	$	5,883,362		$	4,294,824
Interest bearing	2,865,944			2,130,976
Savings and money market	10,590,315			10,621,544
Time	6,730,803			7,347,247
Total deposits	26,070,424			24,394,591
Federal funds purchased	100,000			100,000
FHLB and PPPLF borrowings	4,650,599			4,480,501
Notes and other borrowings	722,332			429,338
Other liabilities	447,491			486,084
Total liabilities	31,990,846			29,890,514

Commitments and contingencies

Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 92,420,278 and 95,128,231 shares issued and outstanding	924			951
Paid-in capital	991,509			1,083,920
Retained earnings	1,905,639			1,927,735
Accumulated other comprehensive loss	(143,019		)	(31,827		)
Total stockholders' equity	2,755,053			2,980,779
Total liabilities and stockholders' equity	$	34,745,899		$	32,871,293

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)



	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020		2019
Interest income:
Loans	$	213,938	$	249,364		$	448,297	$	489,996
Investment securities	50,932		72,796			106,992		149,141
Other	2,908		5,069			6,628		9,921
Total interest income	267,778		327,229			561,917		649,058
Interest expense:
Deposits	50,187		99,987			133,009		197,408
Borrowings	27,254		36,359			57,995		69,866
Total interest expense	77,441		136,346			191,004		267,274
Net interest income before provision for credit losses	190,337		190,883			370,913		381,784
Provision for (recovery of) credit losses	25,414		(2,747		)	150,842		7,534
Net interest income after provision for credit losses	164,923		193,630			220,071		374,250
Non-interest income:
Deposit service charges and fees	3,701		4,290			7,887		8,120
Gain on sale of loans, net	4,326		2,121			7,792		5,057
Gain on investment securities, net	6,836		4,116			3,383		9,901
Lease financing	16,150		17,005			31,631		34,191
Other non-interest income	7,338		7,805			10,956		14,323
Total non-interest income	38,351		35,337			61,649		71,592
Non-interest expense:
Employee compensation and benefits	48,877		57,251			107,764		122,484
Occupancy and equipment	11,901		13,991			24,270		27,157
Deposit insurance expense	4,806		5,027			9,209		9,068
Professional fees	3,131		6,937			6,335		14,808
Technology and telecommunications	14,025		12,013			26,621		23,181
Depreciation of operating lease equipment	12,219		11,489			24,822		23,301
Other non-interest expense	11,411		13,377			26,217		26,776
Total non-interest expense	106,370		120,085			225,238		246,775
Income before income taxes	96,904		108,882			56,482		199,067
Provision for income taxes	20,396		27,431			10,925		51,644
Net income	$	76,508	$	81,451		$	45,557	$	147,423
Earnings per common share, basic	$	0.80	$	0.81		$	0.47	$	1.46
Earnings per common share, diluted	$	0.80	$	0.81		$	0.47	$	1.45

BANKUNITED, INC. AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS

(Dollars in thousands)



	Three Months Ended June 30,
	2020							2019
	Average Balance			Interest ⁽¹⁾⁽²⁾		Yield/ Rate ⁽¹⁾⁽²⁾		Average Balance			Interest ⁽¹⁾⁽²⁾		Yield/ Rate ⁽¹⁾⁽²⁾
Assets:
Interest earning assets:
Loans	$	23,534,684		$	217,691	3.71	%	$	22,505,138		$	253,766	4.52	%
Investment securities ⁽³⁾	8,325,217			51,684		2.48	%	8,187,518			73,867		3.61	%
Other interest earning assets	765,848			2,908		1.53	%	525,563			5,069		3.87	%
Total interest earning assets	32,625,749			272,283		3.35	%	31,218,219			332,702		4.27	%
Allowance for credit losses	(254,396		)					(117,206		)
Non-interest earning assets	1,976,398							1,589,286
Total assets	$	34,347,751						$	32,690,299
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits	$	2,448,545		4,722		0.78	%	$	1,773,912		6,225		1.41	%
Savings and money market deposits	10,450,310			17,447		0.67	%	10,924,580			52,191		1.92	%
Time deposits	7,096,097			28,018		1.59	%	6,944,862			41,571		2.40	%
Total interest bearing deposits	19,994,952			50,187		1.01	%	19,643,354			99,987		2.04	%
Short term borrowings	119,835			32		0.11	%	127,242			771		2.42	%
FHLB and PPPLF borrowings	4,961,376			21,054		1.71	%	5,028,418			30,263		2.41	%
Notes and other borrowings	493,278			6,168		5.00	%	405,726			5,325		5.25	%
Total interest bearing liabilities	25,569,441			77,441		1.22	%	25,204,740			136,346		2.17	%
Non-interest bearing demand deposits	5,313,009							3,932,716
Other non-interest bearing liabilities	820,439							601,703
Total liabilities	31,702,889							29,739,159
Stockholders' equity	2,644,862							2,951,140
Total liabilities and stockholders' equity	$	34,347,751						$	32,690,299
Net interest income				$	194,842						$	196,356
Interest rate spread						2.13	%						2.10	%
Net interest margin						2.39	%						2.52	%


(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)



	Six Months Ended June 30,
	2020							2019
	Average Balance			Interest ⁽¹⁾⁽²⁾		Yield/ Rate ⁽¹⁾⁽²⁾		Average Balance			Interest ⁽¹⁾⁽²⁾		Yield/ Rate ⁽¹⁾⁽²⁾
Assets:
Interest earning assets:
Loans	$	23,192,374		$	455,799	3.94	%	$	22,241,262		$	498,776	4.51	%
Investment securities ⁽³⁾	8,216,433			108,635		2.64	%	8,353,116			151,474		3.63	%
Other interest earning assets	706,238			6,628		1.89	%	510,933			9,921		3.91	%
Total interest earning assets	32,115,045			571,062		3.57	%	31,105,311			660,171		4.26	%
Allowance for credit losses	(196,619		)					(114,157		)
Non-interest earning assets	1,863,074							1,596,565
Total assets	$	33,781,500						$	32,587,719
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits	$	2,311,086		11,681		1.02	%	$	1,738,393		11,864		1.38	%
Savings and money market deposits	10,431,256			55,203		1.06	%	11,187,818			105,008		1.89	%
Time deposits	7,303,083			66,125		1.82	%	6,926,041			80,536		2.34	%
Total interest bearing deposits	20,045,425			133,009		1.33	%	19,852,252			197,408		2.01	%
Short term borrowings	106,951			399		0.75	%	132,282			1,596		2.41	%
FHLB and PPPLF borrowings	4,688,102			46,138		1.98	%	4,845,337			57,637		2.40	%
Notes and other borrowings	461,188			11,458		4.97	%	405,547			10,633		5.24	%
Total interest bearing liabilities	25,301,666			191,004		1.52	%	25,235,418			267,274		2.13	%
Non-interest bearing demand deposits	4,840,781							3,769,828
Other non-interest bearing liabilities	784,770							629,123
Total liabilities	30,927,217							29,634,369
Stockholders' equity	2,854,283							2,953,350
Total liabilities and stockholders' equity	$	33,781,500						$	32,587,719
Net interest income				$	380,058						$	392,897
Interest rate spread						2.05	%						2.13	%
Net interest margin						2.37	%						2.53	%


(1)	On a tax-equivalent basis where applicable


(2)	Annualized


(3)	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 June 30,						Six Months Ended June 30,
c	2020			2019			2020			2019
Basic earnings per common share:
Numerator:
Net income	$	76,508		$	81,451		$	45,557		$	147,423
Distributed and undistributed earnings allocated to participating securities	(3,353		)	(3,382		)	(1,939		)	(6,074		)
Income allocated to common stockholders for basic earnings per common share	$	73,155		$	78,069		$	43,618		$	141,349
Denominator:
Weighted average common shares outstanding	92,409,949			97,451,019			93,177,243			98,150,014
Less average unvested stock awards	(1,207,798		)	(1,174,339		)	(1,154,589		)	(1,173,137		)
Weighted average shares for basic earnings per common share	91,202,151			96,276,680			92,022,654			96,976,877
Basic earnings per common share	$	0.80		$	0.81		$	0.47		$	1.46
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share	$	73,155		$	78,069		$	43,618		$	141,349
Adjustment for earnings reallocated from participating securities	—			9			—			13
Income used in calculating diluted earnings per common share	$	73,155		$	78,078		$	43,618		$	141,362
Denominator:
Weighted average shares for basic earnings per common share	91,202,151			96,276,680			92,022,654			96,976,877
Dilutive effect of stock options and certain shared-based awards	705			345,899			126,858			313,821
Weighted average shares for diluted earnings per common share	91,202,856			96,622,579			92,149,512			97,290,698
Diluted earnings per common share	$	0.80		$	0.81		$	0.47		$	1.45

BANKUNITED, INC. AND SUBSIDIARIES

SELECTED RATIOS



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Financial ratios⁽⁴⁾
Return on average assets	0.90	%	1.00	%	0.27	%	0.91	%
Return on average stockholders’ equity	11.6	%	11.1	%	3.2	%	10.1	%
Net interest margin⁽³⁾	2.39	%	2.52	%	2.37	%	2.53	%



	June 30, 2020		December 31, 2019
Asset quality ratios
Non-performing loans to total loans⁽¹⁾⁽⁵⁾	0.86	%	0.88	%
Non-performing assets to total assets ^{(2) (5)}	0.60	%	0.63	%
Allowance for credit losses to total loans	1.12	%	0.47	%
Allowance for credit losses to non-performing loans^{(1) (5)}	130.29	%	53.07	%
Net charge-offs to average loans ⁽⁴⁾	0.20	%	0.05	%


(1)	We define non-performing loans to include non-accrual loans and loans other than purchase credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchase 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 six month periods.


(5)	Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $45.7 million or 0.19% of total loans and 0.13% of total assets, at June 30, 2020; and $45.7 million or 0.20% of total loans and 0.14% of total assets, at December 31, 2019.

Non-GAAP Financial Measures

PPNR is a non-GAAP financial measure. Management believes this measure is relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses, particularly in view of the adoption of the CECL accounting methodology, which may impact comparability of operating results to prior periods. This measure also provides a meaningful basis for comparison to other financial institutions and is a measure frequently cited by investors. The following table reconciles the non-GAAP financial measurement of PPNR to the comparable GAAP financial measurement of income before income taxes for the three and six months ended June 30, 2020 and 2019 and the three months ended March 31, 2020 (in thousands):



	Three Months Ended June 30,		Three Months Ended March 31,			Three Months Ended June 30,			Six Months Ended June 30,
	2020		2020			2019			2020		2019
Income (loss) before income taxes (GAAP)	$	96,904	$	(40,422	)	$	108,882		$	56,482	$	199,067
Plus: Provision for (recovery of) credit losses	25,414		125,428			(2,747		)	150,842		7,534
PPNR (non-GAAP)	$	122,318	$	85,006		$	106,135		$	207,324	$	206,601

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 with a zero-loss expectation. Disclosure of this non-GAAP financial measure also provides a meaningful base 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 June 30, 2020 (dollars in thousands):



Total loans (GAAP)	$	23,834,889
Less: Government insured residential loans	826,238
Less: PPP loans	827,359
Less: MWL	1,160,728
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)	$	21,020,564

ACL	$	266,123

ACL to total loans (GAAP)	1.12		%

ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)	1.27		%

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 base 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 June 30, 2020 (in thousands except share and per share data):



Total stockholders’ equity	$	2,755,053
Less: goodwill and other intangible assets	77,652
Tangible stockholders’ equity	$	2,677,401

Common shares issued and outstanding	92,420,278

Book value per common share	$	29.81

Tangible book value per common share	$	28.97

exhibit99206302020

Exhibit 99.2 BankUnited, Inc. Q2 2020 – Supplemental Information July 29, 2020

Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of BankUnited, Inc. (“BankUnited,” “BKU” or the “Company”) 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 presentation 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 the COVID-19 pandemic. 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, 2019 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). 2

Financial Highlights

Strong Results in a Challenging Environment • PPNR grew to $122.3 million for Q2 from $85.0 million for the preceding quarter Solid Results with • NIM increased to 2.39% from 2.35% linked quarter • The cost of deposits declined by 0.56% to 0.80% quarter over quarter Improved PPNR • Operating expenses declined 11% quarter over quarter • Non-interest DDA growth of $1.3 billion or 28% for Q2 • CET1 ratios of 12.2% at the holding company and 13.4% at the Bank at June 30, 2020 Robust Capital and • Augmented Tier 2 capital with a $300 million subordinated debt raise Liquidity • Available liquidity totaling $9.8 billion at June 30, 2020 Continuing to Support • Originated over 3,500 PPP loans totaling $876 million • Provided initial 90 day payment deferrals on loans totaling $3.6 billion Our Customers • Waived select fees • Performed granular borrower outreach during the quarter Focused on Credit • Re-deferral requests to date total $748 million Quality • Re-evaluated risk rating of a substantial portion of the commercial portfolio, focusing on loans in high-risk segments and in deferral 4 • Continued enhancing our stress testing and workout capabilities

Highlights from Second Quarter Earnings Change From ($ in millions, except per share data) 2Q20 1Q20 2Q19 1Q20 2Q19 Key Highlights Reduction in funding costs outpaced decline in interest income for the Net Interest Income $190 $181 $191 $9 ($1) quarter Provision for Credit Losses 25 125 (3) (100) 28 Reflects CECL implementation in 1Q20; reserve build moderated in Q2 Total Non-interest Income 38 23 35 15 3 Driven by higher securities gains Total Non-interest Expense 106 119 120 (13) (14) Beginning to reflect improvements generated by BankUnited 2.0 Net Income (Loss) 77 (31) 81 108 (4) 2Q20 reflects improved PPNR and lower provision for credit losses EPS $0.80 ($0.33) $0.81 $1.13 ($0.01) Pre-Provision, Net Revenue (PPNR) (1) $122 $85 $106 $37 $16 Period-end Loans $23,835 $23,184 $22,592 $651 $1,243 5.5% YoY loan growth Period-end Deposits 26,070 25,001 23,922 1,069 2,148 9.0% YoY deposit growth, primarily from non-interest bearing CET1 12.2% 11.8% 11.9% 0.4% 0.3% Total Capital 14.3% 12.6% 12.4% 1.7% 1.9% Yield on Loans 3.71% 4.18% 4.52% (0.47%) (0.81%) Reflects decline in benchmark interest rates Spot APY on interest bearing deposits declined to 0.65% at June 30, Cost of Deposits 0.80% 1.36% 1.70% (0.56%) (0.90%) 2020 Net Interest Margin 2.39% 2.35% 2.52% 0.04% (0.13%) Increase in NIM reflecting our success lowering deposit costs Non-performing Assets to Total Assets(2) 0.60% 0.61% 0.45% (0.01%) 0.15% Allowance for Credit Losses to Total Loans 1.12% 1.08% 0.50% 0.04% 0.62% Net Charge-offs to Average Loans 0.20% 0.13% 0.05% 0.07% 0.15% 2Q20 charge-offs largely attributable to one BFG franchise loan (1) PPNR is a non-GAAP financial measure. See section entitled “Non-GAAP Financial Measures” on page 38 5 (2) Includes guaranteed portion of non-accrual SBA loans.

Continuing to Transform our Deposit Mix Non-interest bearing demand deposits have grown by 62% since December 31, 2018 ($ in millions) $23,474 $23,679 $23,922 $23,956 $24,395 $25,001 $26,070 $4,599 $5,883 Non-interest Demand $3,621 $3,765 $4,099 $4,127 $4,295 Interest Demand $1,771 $1,761 $1,831 $1,847 $2,131 $2,536 $2,866 Money Market / Savings $10,324 Time $11,262 $11,386 $10,911 $10,936 $10,622 $10,590 $6,820 $6,767 $7,081 $7,046 $7,347 $7,542 $6,731 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Cost of Deposits 1.52% 1.67% 1.70% 1.67% 1.48% 1.36% 0.80% Non-interest bearing 15.4% 15.9% 17.1% 17.2% 17.6% 18.4% 22.6% We have consistently priced down our deposit portfolio since the Fed began lowering interest rates in late 2019 Spot Average Annual Percentage Yield At December 31, 2019 At March 31, 2020 At June 30, 2020 (“APY”) Total non-maturity deposits 1.11% 0.83% 0.44% Total interest-bearing deposits 1.71% 1.35% 0.82% Total deposits 1.42% 1.12% 0.65% 6

Prudently Underwritten and Well-Diversified Loan Portfolio At June 30, 2020 ($ in millions) Loan Portfolio Over Time Commercial Loan Portfolio Residential and Other Consumer Multi-family Non-owner occupied CRE BFG- Construction and Land Franchise Owner Occupied CRE 3% C&I SBA PPP $23,835 BFG- CRE Mortgage Warehouse Lending $23,155 $23,185 Equipment 39% $21,977 $590 Pinnacle $685 $649 $623 3% $21,416 Bridge Franchise $627 $648 $1,243 $637 Pinnacle Bridge Equipment $603 $517 $1,202 $1,188 $436 $1,161 7% C&I $19,395 $1,463 $768 $852 $1,525 $827 MWL 37% $546 $432 SBA PPP $427 $459 5% 6% $1,318 $16,637 $4,656 $5,009 $322 $4,358 $4,691 $486 $3,676 $440 $1,086 $3,063 $82 Residential Loan Product Type $2,063 $2,013 $2,026 $2,041 $2,688 $2,120 $1,736 $244 $222 $311 $227 $247 $311 Formerly Govt $1,356 Insured 30 Yr Fixed Covered 15 & 20 $347 $4,475 $5,031 15% 14% $3,732 $4,689 $4,988 $4,941 2% Year Fixed 5/1 ARM 10% $2,905 8% 7/1 ARM 10/1 ARM $2,218 $1,968 $1,893 27% 24% $3,830 $3,219 $2,585 $3,477 $5,661 $5,635 $5,578 $4,699 $4,949 $3,770 $4,110 7 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 3/31/2020 06/30/2020

BankUnited 2.0 Update • 15 months into implementation, BankUnited 2.0 is currently tracking at 81% of our previously disclosed targets. • Cost savings continue ahead of schedule, while realization of revenue has been delayed as a result of a more challenging than anticipated interest rate environment and the COVID pandemic. No BankUnited 2.0 initiatives have been discontinued. Overview • We expect an increase in the BankUnited 2.0 revenue stream beginning in the second half of 2020 from several initiatives: • Anticipated launch of our commercial card program in August • Continued impact of a shift in strategic direction in treasury management • The recent launch of a more effective customer swap platform • New fee generating partnership with Goldman Sachs that will offer investment advisory and retirement planning services to corporate and commercial clients • Small business initiatives • generated 440 new DDA customer relationships in the second quarter • expect to launch our automated underwriting platform later in 2020 • On an annualized run rate basis, the benefit realized from BankUnited 2.0 had reached $49 million as of June 30, 2020 Financial Performance • $2 million from revenue initiatives, primarily treasury management pricing optimization • $47 million in expense reductions 8

Liquidity and Capital

Strong Capital – Well-Positioned to Withstand Severe Stress Stress Testing Results ($ in millions) BankUnited N.A. Regulatory Capital Total Risk Based Capital 14.3% CET1 Capital 13.7% 14.1% Tier 1 Leverage • We stressed our March 31, 2020 portfolio using both the 2018 DFAST 10.0% and 2020 DFAST severely adverse 9.3% 8.6% 8.9% scenarios. 13.4% • The table summarizes projected 5.0% 12.4% 12.9% lifetime losses under both DFAST scenarios and the pro-forma impact 6.5% of immediate recognition of additional stressed losses without PPNR benefit on BankUnited N.A.’s Lifetime Losses Lifetime Losses June 30, 2020 regulatory capital Required to be Current Ratios Projected Under Projected Under ratios. Considered “Well and Actual ACL – 2018 DFAST 2020 DFAST Capitalized” June 30, 2020 Severely Adverse¹ Severely Adverse¹ Expected • Pro-forma regulatory capital ratios n/a $266mm $575mm $445mm Lifetime Losses continue to exceed “well capitalized” Current ACL / guidelines under stress. Stress Scenario n/a – 46% 60% Lifetime Losses (1) The Pinnacle portfolio, which is a primarily investment grade municipal portfolio, was excluded from this stress testing exercise. 10

Robust Liquidity Position Key Liquidity Ratios 12/31/19 3/31/20 6/30/20 30 Day Liquidity Ratio • We have not experienced 1.8x 1.4x 2.4x stress on our liquidity Loans to Deposits 95.1% 92.8% 91.4% position through the period of the pandemic Wholesale Funding / Total Assets 25.3% 27.5% 25.8% $9.8BN Cash, $0.3 $8.5BN Unpledged Agency Securities Cash, $0.5 $2.0 Unpledged PPP Loans $0.2 FRB Discount Window FRB Discount $3.3 Window $2.9 FHLB Atlanta FHLB Atlanta $4.5 $4.3 Other, $0.2 Other, $0.1 March 31, 2020 June 30, 2020 11

Allowance for Credit Losses

CECL Methodology CECL Methodology Underlying Principles Economic Forecast Key Variables • The ACL under CECL represents • Our ACL estimate was informed by • The models ingest numerous national, management’s best estimate at the Moody’s economic scenarios regional and MSA level economic balance sheet date of expected credit published in June 2020. variables and data points. Economic losses over the life of the loan data and variables to which portfolio portfolio. • Unemployment starting at segments are most sensitive: 13%, declining to 9% by end • Required to consider historical of 2020 and to 7% by end of • Commercial information, current conditions and a 2021 o Market volatility index reasonable and supportable • Annualized growth in GDP o S&P 500 index economic forecast. starting at negative 27%, o Unemployment rate recovery beginning in Q32020, o A variety of interest rates • For most portfolio segments, returning to pre-recession and spreads BankUnited uses econometric models levels in 2023 • CRE to project PD, LGD and expected • VIX trailing average starting at o Unemployment losses at the loan level and 32, remaining elevated o CRE property forecast aggregates those expected losses by through 2020 and then o 10-year treasury segment. trending down o Baa corporate yield • S&P 500 starting at 2900, o Real GDP growth • Qualitative adjustments may be declining moderately through • Residential applied to the quantitative results. 2020 before increasing o HPI o Unemployment rate • Accounting standard requires an • 2 year reasonable and supportable o Real GDP growth estimate of expected prepayments forecast period. o Freddie Mac 30-year rate which may significantly impact the lifetime loss estimate. 13

Drivers of Change in the ACL ($ in millions) Qualitative Overlay Assumption Portfolio Changes Changes Economic Forecast • New loans • Additional • Primarily • Exits/runoff • Current qualitative updates to • Portfolio market overlay for assumptions seasoning adjustment borrowers about • Risk rating • Changes to impacted expected migration forward by COVID- prepayments • Changes in path of 19 specific economic reserves forecast and length of forecast period ACL ACL 3/31/20 6/30/20 %of Total 1.08% 1.12% Loans 14

Drivers of Change in the ACL by Portfolio Segment ($ in millions) Assumption Portfolio Economic Qualitative Changes Changes Forecast Overlay • More favorable outlook for volatility Commercial and equity prices ACL ACL 3/31/20 6/30/20 Assumption Portfolio Economic Qualitative Changes Changes Forecast Overlay • Less favorable CRE employment outlook and property forecast ACL ACL 3/31/20 6/30/20 Assumption Portfolio Economic Qualitative Changes Changes Forecast Overlay • Stable outlook; insured Residential loans a greater portion of the portfolio ACL ACL 3/31/20 6/30/20 15

Allocation of the ACL ($ in millions) January 1, 2020 March 31, 2020 June 30, 2020 Balance % of Loans Balance % of Loans Balance % of Loans Residential and other consumer $ 19.3 0.34% $ 12.6 0.22% $ 10.7 0.19% Commercial: Commercial real estate 16.7 0.22% 40.8 0.57% 108.9 1.54% Commercial and industrial 83.6 1.12% 157.6 2.00% 120.6 1.38% Pinnacle 0.4 0.03% 0.6 0.05% 0.2 0.02% Franchise finance 9.0 1.44% 32.9 5.08% 19.4 3.12% (3) Equipment finance 7.0 1.02% 6.1 0.94% 6.3 1.07% Total commercial 116.7 0.67% 238.0 1.36% 255.4 1.40% Allowance for credit losses $ 136.0 0.59% $ 250.6 1.08% $ 266.1 1.12% (4) Asset Quality Ratios December 31, 2019 March 31, 2020 June 30, 2020 Non-performing loans to total loans (1) 0.88% 0.85% 0.86% Non-performing assets to total assets 0.63% 0.61% 0.60% Allowance for credit losses to non-performing loans (1) 53.07% 126.41% 130.29% Net charge-offs to average loans (2) 0.05% 0.13% 0.20% (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $45.7 million, $49.1 million and $45.7 million or 0.19%, 0.21% and 0.20% of total loans and 0.13%, 0.15% and 0.14% of total assets, at June 30, 2020, March 31, 2020 and December 31, 2019. (2) Annualized for the three months ended March 31, 2020 and June 30, 2020. (3) Decline in the ACL related to charge-offs for the quarter ended June 30, 2020 (4) ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 1.27% at June 30, 2020. See section entitled “Non-GAAP Financial Measures” on page 39 16

Loan Portfolio and Credit

Loan Portfolio – Geographic Distribution At June 30, 2020 Commercial (1) Residential NY 16% Other CA FL 38% 40% 28% Other 44% NY 23% FL 11% CRE NY 39% Other 14% FL 47% (1) Includes SBF,MWL, BFG and Pinnacle 18

Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio At June 30, 2020 ($ in millions) • Includes $2.0 billion of First owner-occupied real estate Deferral Re-Deferral • Some key observations: Industry Balance (1) Commitment % of Portfolio Granted Requested • Educational services – Finance and Insurance $1,007 $1,799 15.1% $ 1 $ - well established private Wholesale Trade 720 1,025 10.7% 22 - colleges, universities Educational Services 641 673 9.5% 17 - and high schools Transportation and Warehousing 507 626 7.5% 35 - • Transportation and Health Care and Social Assistance 473 606 7.0% 59 - warehousing – cruise Manufacturing 376 515 5.6% 57 9 lines, aviation Accommodation and Food Services 359 445 5.3% 106 66 Retail Trade 332 454 4.9% 68 22 authorities, logistics Information 298 454 4.4% 1 - • Health care – larger Real Estate and Rental and Leasing 288 444 4.3% 8 - physician practice Professional, Scientific, and Technical Services 277 371 4.1% 14 - management Construction 274 447 4.1% 14 - companies, HMO’s, Public Administration 245 262 3.6% - - mental health & Administrative and Support and Waste Management 239 302 3.5% 11 - substance abuse; no Other Services (except Public Administration) 239 282 3.5% 17 - small practices Arts, Entertainment, and Recreation 216 265 3.2% 38 4 • Arts and entertainment Utilities 189 212 2.8% - - – stadiums, professional Other 53 72 0.9% 1 - sports teams, gaming $6,733 $9,254 100.0% $469 $101 • Accommodation and food services – time share, direct food services businesses and concessionaires (1) Includes amounts from SBF. 19

Loan Portfolio – Commercial Real Estate by Property Type At June 30, 2020 ($ in millions) First Wtd. Avg. Wtd. Avg. Non- Deferral Re-Deferral Property Type Balance FL NY Other DSCR LTV Performing Granted Requested Office $ 2,080 53% 30% 17% 2.17 59.0% $ - $ 372 $ 54 Multifamily 2,010 24% 65% 11% 1.77 56.0% 9 277 12 Retail 1,438 48% 42% 10% 1.61 59.3% 11 769 76 Warehouse/Industrial 783 69% 19% 12% 2.52 55.5% - 98 - Hotel 621 75% 12% 13% 1.59 57.1% 33 537 298 Other 149 85% 10% 5% 1.66 48.9% 4 1 - $ 7,081 46% 40% 14% 1.92 57.4% $ 57 $ 2,054 $ 440 • Commercial real estate loans are secured by income-producing, non-owner occupied properties, typically with well capitalized middle market sponsors • 75% of the CRE portfolio has LTVs less than 65% • 79% of the retail segment and 76% of the hotel segment have LTVs less than 65% • Construction and land loans, included in the table, represent only 1% of the total loan portfolio. • Rent collections based on data generally collected in June: • Multi-family – averaging 70% to 95% depending on geography and property type • Office – FL averaging 87%; NY averaging 71% • Retail – overall average 62%; generally higher in FL than in NY • Hotel occupancy – ranging from 30% to 57% in Florida; most hotel properties now open 20

Loan Portfolio – Deferrals Summary ($ in millions) Through July 17, 2020 First Deferral Granted Re-Deferral Requested • We granted initial Count Balance % of Portfolio Count Balance % of Portfolio CRE - Property Type: COVID related Retail 119 $769 53% 8 $76 5% payment deferral Hotel 93 $537 86% 21 $298 48% requests for loans Office 30 $372 18% 2 $54 3% with balances Multifamily 37 $277 14% 2 $12 1% totaling $3.6 billion Industrial 14 $98 13% - $0 0% • Initial deferrals Other 1 $1 1% - $0 0% were 90 day Total CRE - Proprty Type 294 $2,054 29% 33 $440 6% deferrals C&I - Industry • Re-deferral rate is Accommodation and Food Services 89 $106 30% 21 $66 18% significantly lower Retail Trade 221 $68 20% 4 $22 7% to date Health Care and Social Assistance 126 $59 12% - $0 0% Manufacturing 35 $57 15% 1 $9 2% Other 265 $179 3% 1 $4 0% Total C&I - Industry 736 $469 7% 27 $101 1% BFG - Equipment 35 $35 6% - $0 0% BFG - Franchise 362 $460 74% 82 $155 25% Total Commercial 1,427 $3,018 17% 142 $696 4% Through June 30, 2020 First Deferral Granted Continued to Pay Granted Re-Deferral % of % of Initial % of Count Balance Count Balance Count Balance Portfolio Deferral Portfolio Residential 1,189 $594 13% 548 $252 42% 119 $52 1% 21

Loan Portfolio – Segments Identified for Heightened Monitoring At June 30, 2020 Moderate exposure to sectors most impacted by the pandemic ($ in millions) % of Total Non- First Deferral Re-Deferral Portfolio Balance Loans Performing Special Mention Classified Granted (2) Requested Retail - CRE $ 1,438 6.0% $ 11 $ 172 $ 75 $ 769 $ 76 Retail - C&I 332 1.4% 4 55 25 68 22 BFG - franchise finance 623 2.6% 33 327 89 460 155 Hotel 621 2.6% 33 274 125 537 298 Airlines and aviation authorities 164 0.7% - 27 - - - Cruise line 75 0.3% - 60 - - - Energy (1) 56 0.2% - - - - - Total $ 3,309 13.8% $ 81 $ 915 $ 314 $ 1,834 $ 551 • Pro-active and objective approach to re-risk rating the portfolio based on granular outreach to borrowers • Re-deferrals to date concentrated in franchise finance and hotel segments • Sector commentary: • Cruise Lines – borrowers are companies with strong balance sheets; substantial majority are investment grade clients and have successfully accessed the capital markets since COVID onset • Airlines have received significant relief from government programs • No consumer student loan, auto, home equity or credit card exposure (1) There is also exposure to energy in the operating lease portfolio, primarily railcars, totaling $287 million at June 30, 2020. (2) Reflects modifications through July 17, 2020. 22

Loan Portfolio – Retail At June 30, 2020 ($ in millions) Retail - Commercial Real Estate First Deferral Re-Deferral Property Type Balance Granted Requested • No significant mall or “big Retail - Unanchored $ 734 $ 373 $ 48 Retail - Anchored 644 369 28 box” exposure Restaurant 28 18 - Gas station 25 2 - Construction to perm 7 7 - $ 1,438 $ 769 $ 76 Retail – Commercial & Industrial First Not Secured by Owner Occupied Total Deferral Re-Deferral Industry Real Estate Real Estate Balance Granted Requested Gasoline Stations $ 1 $ 97 $ 99 $ 24 $ - Health and Personal Care Stores 29 7 35 - - Furniture Stores 21 6 28 1 - Grocery Stores 1 22 23 - - Vending Machine Operators 21 1 22 22 21 Specialty Food Stores 2 18 19 - - Automobile Dealers 7 7 14 6 - Clothing Stores 1 11 12 2 - Electronics and Appliance Stores 1 11 11 - - Other 27 42 69 13 1 $ 111 $ 222 $ 332 $ 68 $ 22 23

Loan Portfolio – BFG Franchise Finance At June 30, 2020 ($ in millions) Portfolio Breakdown by Concept First Deferral Re-Deferral Restaurant Concepts Balance % of BFG Franchise Granted Requested Burger King $ 66 11% $ 19 $ - Dunkin Donuts 45 7% 38 4 Popeyes 28 4% 15 5 Jimmy John's 23 4% 22 13 Domino's 23 4% 20 - Other 194 31% 141 54 $ 379 61% $ 255 $ 76 First Deferral Re-Deferral Non-Restaurant Concept Balance % of BFG Franchise Granted Requested Planet Fitness $ 107 17% $ 78 $ 14 Orange Theory Fitness 87 14% 86 58 Other 50 8% 41 7 $ 244 39% $ 205 $ 79 Portfolio Breakdown by Geography CA 18% FL 11% Other CO 58% 7% TX 24 6%

Loan Portfolio – Hotel At June 30, 2020 ($ in millions) Exposure by Flag • 75% of our exposure is in Florida, followed by 12% in New York Other • Includes $59.7 million in SBA Sheraton $88 Marriott loans of which $13.7 million is $39 14% $171 guaranteed 6% 28% • Substantially all hotel properties are now open in IHG both New York and Florida $59 9% Hilton $86 Independent 14% $178 29% Total Portfolio: $620.6mm 25

BFG Energy Exposure At June 30, 2020 ($ in millions) BFG Energy Portfolio • Our energy exposure is modest Balance • Assets in the operating lease Operating leases $ 286.9 portfolio have useful lives that Loan/Finance Lease 56.3 span multiple economic cycles Total $ 343.2 • Railcar fleet is 55% tank cars, 43% sand hoppers and 2% other Exposure by Asset Type Other 6% Marine 16% Aircraft 11% Rail 67% 26

Credit Quality – Residential At June 30, 2020 High quality residential portfolio consists FICO Distribution(1) of primarily prime jumbo mortgages with de-minimis charge-offs since <719 or inception as well as fully government NA insured assets 13% 720-759 21% >760 66% Breakdown by LTV(1) Breakdown by Vintage(1) More 2020 than 80% 5% 60% or 4% 2019 less Prior 17% 29% 71% - 35% 80% 2018 44% 61% - 10% 70% 23% 2016 2017 17% 16% (1) Excludes government insured residential loans. FICOs are refreshed routinely. LTVs are typically based on valuation at origination. 27

Asset Quality Metrics ($ in millions) Non-performing Loans to Total Loans Non-performing Assets to Total Assets Incl. guaranteed portion of non-accrual SBA loans Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 1.00% 0.86% 1.00% 0.88% 0.85% 0.75% 0.67% 0.75% 0.59% 0.63% 0.61% 0.60% 0.68% 0.64% 0.50% 0.50% 0.43% 0.47% 0.51% 0.49% 0.46% 0.25% 0.25% 0.37% 0.00% 0.00% Dec 18 Dec 19 Mar 20 Jun 20 Dec 18 Dec 19 Mar 20 Jun 20 Net Charge-offs to Average Loans(1)(2) 0.60% 0.40% 0.28% 0.20% 0.20% 0.13% 0.05% 0.00% Dec 18 Dec 19 Mar 20 Jun 20 (1) Net charge-off ratio is annualized for the three months ended June 30, 2020 and March 31, 2020. 28 (2) Net charge-offs for the three months ended June 30, 2020 included $16.1 million related to one BFG franchise borrower.

Non-Performing Loans by Portfolio Segment ($ in millions) Residential CRE C&I Equipment Franchise SBF(1) $204,787 $204,248 $198,221 $61,892 $63,713 $63,726 $129,891 $13,631 $32,857 $20,939 $34,108 $37,635 $1,148 $5,308 $11,561 $17,424 $65,296 $65,588 $28,309 $51,130 $24,135 $37,488 $17,213 $27,759 $18,894 $16,956 $7,254 $13,183 12/31/2018 12/31/2019 3/31/2020 6/30/2020 (1) Includes the guaranteed portion of non-accrual SBA loans totaling $45.7 million, $49.1 million, $45.7 million and $17.8 at June 30, 2020, March 31, 2020, December 31, 2019 and December 2018, respectively. 29

Criticized and Classified Loans ($ in millions) Commercial Real Estate Commercial & Industrial $600 $600 $500 $500 $400 $400 $300 $300 $200 $200 $100 $100 $0 $0 12/31/18 12/31/19 3/31/20 6/30/20 12/31/18 12/31/19 3/31/20 6/30/20 Franchise Finance Equipment Finance SBF(1) $600 $600 $600 $500 $500 $500 $400 $400 $400 $300 $300 $300 $200 $200 $200 $100 $100 $100 $0 $0 $0 12/31/18 12/31/19 3/31/20 6/30/20 12/31/18 12/31/19 3/31/20 6/30/20 12/31/18 12/31/19 3/31/20 6/30/20 (1) Includes the guaranteed portion of non-accrual SBA loans totaling $45.7 million, $49.1 million, $45.7 million and $17.8 at June 30, 2020, 30 March 31, 2020, December 31, 2019 and December 2018, respectively.

Criticized and Classified - CRE by Property Type ($ in millions) Office Multifamily Retail $275 $275 $275 $250 $250 $250 $225 $225 $225 $200 $200 $200 $175 $175 $175 $150 $150 $150 $125 $125 $125 $100 $100 $100 $75 $75 $75 $50 $50 $50 $25 $25 $25 $0 $0 $0 12/31/18 12/31/19 3/31/20 6/30/20 12/31/18 12/31/19 3/31/20 6/30/20 12/31/18 12/31/19 3/31/20 6/30/20 Warehouse/Industrial Hotel Other $275 $275 $275 $250 $250 $250 $225 $225 $225 $200 $200 $200 $175 $175 $175 $150 $150 $150 $125 $125 $125 $100 $100 $100 $75 $75 $75 $50 $50 $50 $25 $25 $25 $0 $0 $0 12/31/18 12/31/19 3/31/20 6/30/20 12/31/18 12/31/19 3/31/20 6/30/20 12/31/18 12/31/19 3/31/20 6/30/20 31

Criticized and Classified – BFG Franchise Finance ($ in millions) Restaurant Concepts Fitness Concepts $160 $160 $140 $140 $120 $120 $100 $100 $80 $80 $60 $60 $40 $40 $20 $20 $0 $0 12/31/18 12/31/19 3/31/20 6/30/20 12/31/18 12/31/19 3/31/20 6/30/20 Other $160 $140 $120 $100 $80 $60 $40 $20 $0 32 12/31/18 12/31/19 3/31/20 6/30/20

Asset Quality - Delinquencies ($ in millions) Commercial CRE $105 $105 $90 $90 $75 $75 $60 $60 $45 $45 $30 $30 $15 $15 $0 $0 12/31/18 12/31/19 3/31/20 6/30/20 12/31/18 12/31/19 3/31/20 6/30/20 Residential (1) (1) $105 $90 $75 $60 $45 $30 $15 $0 (1) Excludes government insured residential loans. 33 12/31/18 12/31/19 3/31/20 6/30/20

Investment Portfolio

Investment Securities AFS No credit losses expected on the $8.7 billion portfolio; unrealized losses attributable primarily to widening spreads - valuations have recovered materially during the second quarter. ($ in millions) Portfolio Composition Ratings Distribution State and Other A NR Municipal 3% 1% 1% Obligations AA 3% CLOs 7% Residential 13% US Gov real estate Government 37% lease-backed and agency securities 37% 7% AAA Private 54% label CMBS Private label 24% RMBS and CMOs 13% December 31, 2019 March 31, 2020 June 30, 2020 Net Unrealized Net Unrealized Net Unrealized Portfoio Gain (Loss) Fair Value Gain (Loss) Fair Value Gain (Loss) Fair Value US Government and agency 10,516 2,826,207 $ (23,649) 2,893,932 $ 17,035 $ 3,167,239 Private label RMBS and CMOs 10,840 1,012,177 (11,659) 1,173,880 14,696 1,116,086 Private label CMBS 5,456 1,724,684 (123,796) 1,604,814 (32,063) 2,043,620 Residential real estate lease-backed securities 2,566 470,025 (21,188) 528,793 10,188 618,207 CLOs (7,539) 1,197,366 (74,676) 1,094,793 (38,176) 1,128,753 State and Municipal Obligations 15,774 273,302 15,431 271,033 19,993 259,495 Other 733 194,904 (10,283) 255,161 5,677 261,531 Total $ 38,346 $ 7,698,665 $ (249,820) $ 7,822,406 $ (2,650) $ 8,594,931 35

Investment Securities – Asset Quality of Select Non-Agency Securities At June 30, 2020 Strong credit enhancement levels on CLOs and CMBS A Collateralized Loan Obligations (CLOs) AA 3% 13% Subordination Wtd. Avg. Rating Min Max Avg Stress Scenario Loss AAA 36.1 48.2 43.0 20.7 AA 26.9 40.4 32.4 22.0 AAA A 24.9 29.5 26.7 25.0 84% Total 34.5 46.6 41.1 21.0 A Private Label Commercial Mortgage-Backed Securities (CMBS) 3% AA 12% Subordination Wtd. Avg. Rating Min Max Avg Stress Scenario Loss AAA 29.4 54.5 43.1 12.8 AA 31.1 81.8 37.2 11.4 AAA A 21.5 68.7 28.8 11.9 83% Total 29.2 58.5 41.6 12.6 36

Non-GAAP Financial Measures

Non-GAAP Financial Measures PPNR is a non-GAAP financial measure. Management believes this measure is relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses, particularly in view of the adoption of the CECL accounting methodology, which may impact comparability of operating results to prior periods. This measure also provides a meaningful basis for comparison to other financial institutions and is a measure frequently cited by investors. The following table reconciles the non-GAAP financial measurement of PPNR to the comparable GAAP financial measurement of income before income taxes for the three months ended June 30, 2020, March 31, 2020, and June 30, 2019 (in thousands): 38

Non-GAAP Financial Measures (continued) 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 with a zero-loss expectation. Disclosure of this non-GAAP financial measure also provides a meaningful base 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 June 30, 2020 (dollars in thousands): 39