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0001504008false00015040082022-04-212022-04-210001504008exch:XNYS2022-04-212022-04-21


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):April 21, 2022 (April 21, 2022)

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:
ClassTrading SymbolName of Exchange on Which Registered
Common Stock, $0.01 Par ValueBKUNew 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 April 21, 2022, BankUnited, Inc. (the “Company”) reported its results for the quarter ended March 31, 2022. 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
 April 21, 2022
April 21, 2022
2



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:April 21, 2022BANKUNITED, INC.
 /s/ Leslie N. Lunak
 Name:Leslie N. Lunak
 Title:Chief Financial Officer


3




EXHIBIT INDEX
 
Exhibit
Number		 Description
 April 21, 2022
April 21, 2022




4
Document

Exhibit 99.1
 
BANKUNITED, INC. REPORTS FIRST QUARTER 2022 RESULTS
 
Miami Lakes, Fla. — April 21, 2022 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2022.
"Despite the recent volatility in capital markets, we continue to see strength in our local economies. Consequently we remain optimistic about the rest of 2022 and continue to invest in and grow our core franchise -- one client at a time." said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended March 31, 2022, the Company reported net income of $67.2 million, or $0.79 per diluted share, compared to $125.3 million or $1.41 per diluted share for the immediately preceding quarter ended December 31, 2021 and $98.8 million, or $1.06 per diluted share, for the quarter ended March 31, 2021. As previously reported, earnings for the quarter ended December 31, 2021 were impacted by discrete income tax benefits of $69.1 million and a $44.8 million pre-tax loss on discontinuance of hedges. Earnings for the quarter ended March 31, 2021 were favorably impacted by a $28.0 million recovery of the provision for credit losses.
Quarterly Highlights
•Our new corporate banking office in Atlanta marks a renewed effort to expand outside of our core geographic markets of Florida and New York. We also expect to open a full service banking branch in the Dallas area in late April, 2022.
•In March, 2022 Newsweek named BankUnited one of America's most trusted companies. BankUnited was ranked #4 among banks on this list.
•The Company announced an increase of $0.02 in its cash dividend for the quarter ended March 31, 2022, to $0.25 per common share, reflecting a 9% increase from the previous quarterly dividend of $0.23 per common share.
•The net interest margin, calculated on a tax-equivalent basis, expanded to 2.50% for the quarter ended March 31, 2022 from 2.44% for the immediately preceding quarter and 2.39% for the quarter ended March 31, 2021. Net interest income increased by $2.6 million compared to the immediately preceding quarter ended December 31, 2021 and by $12.4 million compared to the quarter ended March 31, 2021.
•The average cost of total deposits was 0.17% for the quarter ended March 31, 2022 compared to 0.19% for the immediately preceding quarter ended December 31, 2021 and 0.33% for the quarter ended March 31, 2021. On a spot basis, the average annual percentage yield ("APY") on total deposits was 0.16% at both March 31, 2022 and December 31, 2021.
•Non-interest bearing demand deposits grew by $688 million during the quarter ended March 31, 2022. At March 31, 2022, non-interest bearing demand deposits represented 34% of total deposits, compared to 30% of total deposits at December 31, 2021. Total deposits declined by $897 million during the quarter ended March 31, 2022, with declines in interest bearing demand, savings and money market and time deposits.
•Total loans, excluding the runoff of PPP loans, declined by $227 million for the quarter ended March 31, 2022, while average loans, excluding PPP loans, increased by $586 million.
•The ratio of non-performing loans to total loans declined to 0.65% at March 31, 2022 from 0.87% at December 31, 2021. The guaranteed portion of SBA loans on non-accrual status represented 0.18% of total loans at March 31, 2022. Criticized and classified loans continued to decline. During the quarter ended March 31, 2022, total criticized and classified loans declined by $280 million.
•For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million compared to a provision of $0.2 million for the immediately preceding quarter ended December 31, 2021 and a recovery of the provision for credit losses of $(28.0) million for the quarter ended March 31, 2021.
1

•Results for the quarter were impacted by declines in the fair value of investment securities. Accumulated other comprehensive income declined by $142 million for the quarter ended March 31, 2022, primarily due to an increase in unrealized losses on investment securities available for sale. Non-interest income was impacted by a $10.5 million decline in the fair value of certain preferred stock investments. These declines in the fair value of securities resulted primarily from widening spreads and rising interest rates related to the Fed's plans for quantitative tightening and benchmark interest rate increases, as well as inflationary concerns. None of the unrealized losses were attributable to credit loss impairments; the Company expects to recover the amortized cost basis of its available for sale securities.
•At March 31, 2022, book value per common share and tangible book value per common share were $34.04 and $33.12, respectively.
•As previously reported, on February 2, 2022, the Company's Board of Directors authorized the repurchase of up to an additional $150 million in shares of its outstanding common stock. During the quarter ended March 31, 2022, the Company repurchased approximately 1.9 million shares of its common stock for an aggregate purchase price of $82.1 million, at a weighted average price of $42.50 per share.
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
March 31, 2022December 31, 2021
Residential and other consumer loans$8,612,839 36.8 %$8,368,380 35.2 %
Multi-family1,072,981 4.6 %1,154,738 4.9 %
Non-owner occupied commercial real estate4,284,675 18.3 %4,381,610 18.4 %
Construction and land176,825 0.8 %165,390 0.7 %
Owner occupied commercial real estate1,905,395 8.2 %1,944,658 8.2 %
Commercial and industrial4,951,999 21.2 %4,790,275 20.2 %
PPP80,296 0.3 %248,505 1.0 %
Pinnacle935,915 4.0 %919,641 3.9 %
Bridge - franchise finance306,563 1.3 %342,124 1.4 %
Bridge - equipment finance341,369 1.5 %357,599 1.5 %
Mortgage warehouse lending ("MWL")701,172 3.0 %1,092,133 4.6 %
$23,370,029 100.0 %$23,765,053 100.0 %
Residential and other consumer loans grew by $244 million during the quarter ended March 31, 2022. Commercial and industrial loans, including owner-occupied commercial real estate, grew by $122 million for the quarter. Most of the remaining commercial portfolio segments showed declines for the quarter. MWL utilization declined to 39% at March 31, 2022 compared to 56% at December 31, 2021 as rising rates have led to lower refinancing activity and this segment is evidencing a return to historically normal seasonal utilization patterns. PPP loans declined by $168 million during the quarter ended March 31, 2022, resulting from full or partial forgiveness from the Small Business Administration.
Asset Quality and the Allowance for Credit Losses ("ACL")
Non-performing loans totaled $150.8 million or 0.65% of total loans at March 31, 2022, compared to $205.9 million or 0.87% of total loans at December 31, 2021. Non-performing loans included $41.9 million and $46.1 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.18% of total loans at March 31, 2022 and 0.19% of total loans at December 31, 2021.
2

The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
March 31, 2022December 31, 2021
Special mention$95,250 $148,593 
Substandard - accruing956,318 1,136,378 
Substandard - non-accruing104,329 129,579 
Doubtful26,678 47,754 
Total $1,182,575 $1,462,304 
Loans currently under short-term deferral or modified under the CARES Act totaled $149 million at March 31, 2022, down from a total of $205 million at December 31, 2021.
The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the three months ended March 31, 2022 and year ended December 31, 2021 (dollars in thousands):
ACL
ACL to Total Loans (1)
ACL to Non-Performing Loans
Net Charge-offs to Average Loans(2)
December 31, 2021$126,457 0.53 %61.41 %0.29 %
March 31, 2022$125,443 0.54 %83.17 %0.15 %
(1)    ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.61% and 0.62% at March 31, 2022 and December 31, 2021, respectively.
(2)    Annualized for the three months ended March 31, 2022.
The ACL at March 31, 2022 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in March 2022, economic information provided by additional sources including developments subsequent to publishing of the scenarios, information about borrower financial condition and collateral values and other relevant information.
For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million, which included a provision of $7.4 million related to funded loans and a $0.4 million provision related to unfunded loan commitments. The most significant factor impacting the provision for credit losses for the quarter ended March 31, 2022 was an increase in qualitative loss factors related to economic uncertainty.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
Three Months Ended March 31,
 20222021
Beginning balance$126,457 $257,323 
Provision (recovery)7,446 (26,306)
Net charge-offs(8,460)(10,083)
Ending balance$125,443 $220,934 
Funding
Total deposits declined by $897 million for the quarter ended March 31, 2022. The majority of deposit outflows were accounts that, based on prior experience, we would expect to be price sensitive in a rising rate environment. While we initially did not anticipate growth in the securities portfolio, total investment securities increased by $508 million for the quarter as we took advantage of opportunities to purchase securities at attractive spreads. Correspondingly, FHLB advances increased by $1.5 billion during the quarter ended March 31, 2022.
Net Interest Income
Net interest income for the quarter ended March 31, 2022 was $208.6 million compared to $206.0 million for the immediately preceding quarter ended December 31, 2021 and $196.2 million for the quarter ended March 31, 2021. The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.06% to 2.50% for the quarter ended March 31, 2022, from 2.44% for the immediately preceding quarter ended December 31, 2021. Factors impacting the net interest margin for the quarter ended March 31, 2022 included:
3

•The tax-equivalent yield on investment securities increased to 1.73% for the quarter ended March 31, 2022 from 1.54% for the quarter ended December 31, 2021. This increase resulted from the impact of purchases of higher-yielding securities and the impact of slower prepayment speeds on securities purchased at a premium.
•The tax-equivalent yield on loans decreased to 3.36% for the quarter ended March 31, 2022, from 3.50% for the quarter ended December 31, 2021. Factors that contributed to the decline included slower prepayment speeds on PCD residential loans, the effect of the sale of a pool of higher yielding residential loans during the fourth quarter of 2021, and runoff of loans originated in a comparatively higher rate environment.
•The average rate paid on FHLB advances decreased to 1.11% for the quarter ended March 31, 2022, from 1.86% for the quarter ended December 31, 2021. This decrease resulted from the maturity of higher rate advances, including the termination of certain cash flow hedges during the quarter ended December 31, 2021, and the addition of new advances at comparatively lower prevailing rates.
•The average rate paid on interest bearing deposits decreased to 0.24% for the quarter ended March 31, 2022, from 0.27% for the quarter ended December 31, 2021. Callable and other brokered CDs and cash flow hedges entered into in anticipation of rising rates impacted the cost of deposits for the quarter; the average rate paid on interest bearing deposits excluding these instruments was 0.21% for the quarter ended March 31, 2022. The increase in the average cost of time deposits for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021 was attributable to these products. The average cost of time deposits other than these products was 0.22% for the quarter ended March 31, 2022.
Non-interest income and Non-interest expense
Non-interest income totaled $14.3 million for the quarter ended March 31, 2022 compared to $45.6 million for the quarter ended December 31, 2021 and $30.3 million for the quarter ended March 31, 2021.
•Gain (loss) on investment securities was a net loss of $(7.9) million for the quarter ended March 31, 2022 compared to net gains of $0.6 million and $2.4 million for the quarters ended December 31, 2021 and March 31, 2021, respectively. The net loss for the quarter ended March 31, 2022 was attributable to a $10.5 million decline in the fair value of certain preferred stock investments resulting from rising market interest rates.
•As previously disclosed, gain on sale of loans for the quarter ended December 31, 2021 included a gain of $18.2 million on the sale of a pool of residential mortgages.
•Other non-interest income for the quarter ended March 31, 2022 compared to the quarters ended December 31, 2021 and March 31, 2021 reflected declines in income related to investments in bank-owned life insurance, and as compared to the quarter ended March 31, 2021, a decline in revenue related to our commercial derivative program.
Non-interest expense totaled $126.3 million for the quarter ended March 31, 2022 compared to $123.2 million for the quarter ended March 31, 2021 and $187.9 million for the quarter ended December 31, 2021.
•The most significant offsetting factors contributing to the increase in non-interest expense compared to the quarter ended March 31, 2021 were (i) a $7.8 million increase in employee compensation and benefits and (ii) a $4.0 million decline in deposit insurance expense reflecting a decrease in the FDIC assessment rate.
•Non-interest expense for the quarter ended December 31, 2021 included a $44.8 million loss on discontinuance of cash flow hedges. Employee compensation and benefits declined by $3.5 million for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021. The quarter ended December 31, 2021 included $6.8 million related to a special employee bonus.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, April 21, 2022 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. 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 6761489. A replay of the call will be available from 12:00 p.m. ET on April 21st through 11:59
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p.m. ET on April 28th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 6761489. 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 $36.3 billion at March 31, 2022, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 62 banking centers in 12 Florida counties and 4 banking centers in the New York metropolitan area.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. 
The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov).
Contact
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak, 786-313-1698
llunak@bankunited.com
Source: BankUnited, Inc.
5

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data) 
March 31,
2022		December 31,
2021
ASSETS  
Cash and due from banks:  
Non-interest bearing$17,780 $19,143 
Interest bearing679,712 295,714 
Cash and cash equivalents 697,492 314,857 
Investment securities (including securities recorded at fair value of $10,562,098 and $10,054,198)10,572,098 10,064,198 
Non-marketable equity securities190,534 135,859 
Loans23,370,029 23,765,053 
Allowance for credit losses (125,443)(126,457)
Loans, net23,244,586 23,638,596 
Bank owned life insurance 314,697 309,477 
Operating lease equipment, net627,146 640,726 
Goodwill77,637 77,637 
Other assets607,434 634,046 
Total assets$36,331,624 $35,815,396 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Demand deposits:  
Non-interest bearing$9,663,307 $8,975,621 
Interest bearing2,872,430 3,709,493 
Savings and money market13,029,823 13,368,745 
Time2,975,715 3,384,243 
Total deposits28,541,275 29,438,102 
Federal funds purchased199,000 199,000 
FHLB advances3,395,000 1,905,000 
Notes and other borrowings721,291 721,416 
Other liabilities613,826 514,117 
Total liabilities 33,470,392 32,777,635 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 84,052,021 and 85,647,986 shares issued and outstanding841 856 
Paid-in capital626,564 707,503 
Retained earnings2,391,526 2,345,342 
Accumulated other comprehensive loss(157,699)(15,940)
Total stockholders' equity 2,861,232 3,037,761 
Total liabilities and stockholders' equity $36,331,624 $35,815,396 

6

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
Three Months Ended
 March 31,December 31,March 31,
 202220212021
Interest income:  
Loans$191,562 $198,275 $205,335 
Investment securities43,048 38,201 38,501 
Other1,354 1,397 1,593 
Total interest income 235,964 237,873 245,429 
Interest expense:
Deposits11,857 13,631 22,376 
Borrowings15,465 18,227 26,813 
Total interest expense 27,322 31,858 49,189 
Net interest income before provision for credit losses 208,642 206,015 196,240 
Provision for (recovery of) credit losses 7,830 246 (27,989)
Net interest income after provision for credit losses 200,812 205,769 224,229 
Non-interest income:
Deposit service charges and fees5,960 5,815 4,900 
Gain (loss) on sale of loans, net (824)19,003 1,754 
Gain (loss) on investment securities, net(7,868)590 2,365 
Lease financing13,415 14,041 12,488 
Other non-interest income3,618 6,173 8,789 
Total non-interest income 14,301 45,622 30,296 
Non-interest expense:
Employee compensation and benefits67,088 70,561 59,288 
Occupancy and equipment 11,512 12,817 11,875 
Deposit insurance expense3,403 3,471 7,450 
Professional fees 2,262 8,023 1,912 
Technology and telecommunications17,004 18,221 15,741 
Discontinuance of cash flow hedges— 44,833 — 
Depreciation and impairment of operating lease equipment12,610 15,769 12,217 
Other non-interest expense12,445 14,165 14,738 
Total non-interest expense 126,324 187,860 123,221 
Income before income taxes88,789 63,531 131,304 
Provision (benefit) for income taxes21,639 (61,724)32,490 
Net income$67,150 $125,255 $98,814 
Earnings per common share, basic$0.79 $1.42 $1.06 
Earnings per common share, diluted$0.79 $1.41 $1.06 

7

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Three Months Ended March 31, 2022Three Months Ended
December 31, 2021		Three Months Ended March 31, 2021
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans$23,349,143 $194,551 3.36 %$22,919,535 $201,345 3.50 %$23,549,309 $208,821 3.58 %
Investment securities (3)
10,083,083 43,719 1.73 %10,113,026 38,889 1.54 %9,070,185 39,188 1.73 %
Other interest earning assets674,640 1,354 0.81 %1,184,056 1,397 0.47 %1,062,840 1,593 0.61 %
Total interest earning assets34,106,866 239,624 2.83 %34,216,617 241,631 2.81 %33,682,334 249,602 2.98 %
Allowance for credit losses(129,028)(149,319)(254,438)
Non-interest earning assets1,674,476 1,767,850 1,724,176 
Total assets$35,652,314 $35,835,148 $35,152,072 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$3,078,037 $1,364 0.18 %$3,058,355 $1,481 0.19 %$2,942,874 $2,774 0.38 %
Savings and money market deposits13,401,332 6,931 0.21 %13,460,084 9,619 0.28 %12,793,019 12,127 0.38 %
Time deposits3,319,585 3,562 0.44 %3,399,302 2,531 0.30 %4,330,781 7,475 0.70 %
Total interest bearing deposits19,798,954 11,857 0.24 %19,917,741 13,631 0.27 %20,066,674 22,376 0.45 %
Federal funds purchased187,539 58 0.13 %56,793 13 0.09 %8,000 3 0.15 %
FHLB advances2,248,889 6,146 1.11 %1,909,450 8,957 1.86 %3,072,717 17,558 2.32 %
Notes and other borrowings721,405 9,261 5.13 %721,525 9,257 5.13 %722,305 9,252 5.12 %
Total interest bearing liabilities22,956,787 27,322 0.48 %22,605,509 31,858 0.56 %23,869,696 49,189 0.83 %
Non-interest bearing demand deposits9,047,864 9,330,805 7,491,249 
Other non-interest bearing liabilities623,199 785,254 746,973 
Total liabilities32,627,850 32,721,568 32,107,918 
Stockholders' equity3,024,464 3,113,580 3,044,154 
Total liabilities and stockholders' equity$35,652,314 $35,835,148 $35,152,072 
Net interest income$212,302 $209,773 $200,413 
Interest rate spread2.35 %2.25 %2.15 %
Net interest margin2.50 %2.44 %2.39 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    At fair value except for securities held to maturity








8

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)
Three Months Ended March 31,
c20222021
Basic earnings per common share: 
Numerator:
Net income$67,150 $98,814 
Distributed and undistributed earnings allocated to participating securities
(929)(1,252)
Income allocated to common stockholders for basic earnings per common share$66,221 $97,562 
Denominator:
Weighted average common shares outstanding84,983,873 93,075,702 
Less average unvested stock awards(1,211,807)(1,205,529)
Weighted average shares for basic earnings per common share83,772,066 91,870,173 
Basic earnings per common share$0.79 $1.06 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share$66,221 $97,562 
Adjustment for earnings reallocated from participating securities
1 1 
Income used in calculating diluted earnings per common share$66,222 $97,563 
Denominator:
Weighted average shares for basic earnings per common share83,772,066 91,870,173 
Dilutive effect of certain share-based awards137,704 93,540 
Weighted average shares for diluted earnings per common share
83,909,770 91,963,713 
Diluted earnings per common share$0.79 $1.06 

9


BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 Three Months Ended March 31,
 20222021
Financial ratios (4)
  
Return on average assets0.76 %1.14 %
Return on average stockholders’ equity9.0 %13.2 %
Net interest margin (3)
2.50 %2.39 %
 March 31, 2022December 31, 2021
Asset quality ratios  
Non-performing loans to total loans (1)(5)
0.65 %0.87 %
Non-performing assets to total assets (2)(5)
0.42 %0.58 %
Allowance for credit losses to total loans0.54 %0.53 %
Allowance for credit losses to non-performing loans (1)(5)
83.17 %61.41 %
Net charge-offs to average loans (4)
0.15 %0.29 %
(1)    We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.
(2)    Non-performing assets include non-performing loans, OREO and other repossessed assets.
(3)    On a tax-equivalent basis.
(4) Annualized for the three month periods.
(5)    Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.9 million or 0.18% of total loans and 0.12% of total assets at March 31, 2022; and $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021.

March 31, 2022December 31, 2021Required to be Considered Well Capitalized
BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.
Capital ratios
Tier 1 leverage8.3 %9.6 %8.4 %9.6 %5.0 %
Common Equity Tier 1 ("CET1") risk-based capital12.5 %14.5 %12.6 %14.5 %6.5 %
Total risk-based capital14.3 %15.0 %14.3 %14.9 %10.0 %
10

Non-GAAP Financial Measures
ACL to total loans, excluding government insured residential loans, PPP loans and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands):
March 31, 2022December 31, 2021
Total loans (GAAP)$23,370,029$23,765,053
Less: Government insured residential loans1,938,4792,023,221
Less: PPP loans80,296248,505
Less: MWL701,1721,092,133
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)$20,650,082$20,401,194
ACL$125,443$126,457
ACL to total loans (GAAP)0.54 %0.53 %
ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)0.61 %0.62 %
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): 
March 31, 2022December 31, 2021
Total stockholders’ equity (GAAP)$2,861,232 $3,037,761 
Less: goodwill77,637 77,637 
Tangible stockholders’ equity (non-GAAP)$2,783,595 $2,960,124 
 
Common shares issued and outstanding84,052,021 85,647,986 
 
Book value per common share (GAAP)$34.04 $35.47 
 
Tangible book value per common share (non-GAAP)$33.12 $34.56 
11
exhibit99203312022
April 21, 2022 Q1 2022 – Supplemental Information Exhibit 99.2

 
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 external circumstances outside the Company's direct control. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov). 2

 
Recognitions and Rankings 3 South Florida-based Community Bank based on assets, South Florida Business Journal, October 2021 # 1 Largest Florida-based Bank based on assets, Florida Business Journals, December 2020 # 3 South Florida Business Journal, June 2021 Healthiest Employer in South Florida,#1 100 Healthiest Workplaces in America, Springbuk, October 2021 #13 Superior rating by BauerFinancial consecutively since its inception Newsweek, March 2022 #4 America’s Most Trusted companies (Banking),

 
Financial Highlights

 
Quarterly Snapshot 5 Operating results Loans and Deposits Asset Quality Capital • Net income for the quarter of $67.2 million and EPS of $0.79 • NIM expanded by 6bps to 2.50% • 22% YoY increase in deposit service charge revenue • Earnings impacted by $10.5 million decline in fair value of preferred stock investments • Total loans, excluding PPP runoff, declined by $227 million, while average loans, excluding PPP, grew by $586 million • Non-interest bearing demand deposits grew by $688 million to 34% of total deposits • Total deposits declined by $897 million • Average cost of total deposits of 0.17% for the quarter; “Spot” APY on total deposits was 0.16% at March 31, 2022 • Total criticized and classified loans declined by $280 million • NPA ratio improved to 0.42% from 0.58%; guaranteed portion of SBA loans included in NPAs was 0.12% of total assets • During Q1 2022, we repurchased $82.1 million of common stock • Increased the quarterly dividend by $0.02 or 9% • CET1 ratios of 12.5% at the holding company and 14.5% at the bank at March 31, 2022 • At March 31, 2022, book value per share and tangible book value per share were $34.04 and $33.12, respectively

 
Highlights from First Quarter Earnings 6 Key Highlights $11 million loss on certain preferred stock investments in Q1; $18 million gain on sale of a pool of residential loans in Q4 $59 million in notable expense items in Q4 $69 million in discrete income tax benefits in Q4 2021 21% YoY non-interest DDA growth; (1) Includes guaranteed portion of non-accrual SBA loans. (2) Annualized for the periods ended March 31, 2022 and March 31, 2021. ($ in millions, except per share data) Q1 22 Q4 21 Q1 21 Q4 21 Q1 21 Net Interest Income $209 $206 $196 $3 $12 Provision for (Recovery of) Credit Losses $8 $0.2 ($28) $8 $36 Total Non-interest Income $14 $46 $30 ($31) ($16) Total Non-interest Expense $126 $188 $123 ($62) $3 Net Income $67 $125 $99 ($58) ($32) EPS $0.79 $1.41 $1.06 ($0.62) ($0.27) Period-end Loans $23,370 $23,765 $23,361 ($395) $9 Period-end Non-interest DDA $9,663 $8,976 $7,966 $688 $1,698 Period-end Deposits $28,541 $29,438 $27,732 ($897) $809 CET1 12.5% 12.6% 13.2% (0.1%) (0.7%) Total Capital 14.3% 14.3% 15.2% - (0.9%) Yield on Loans 3.36% 3.50% 3.58% (0.14%) (0.22%) Cost of Deposits 0.17% 0.19% 0.33% (0.02%) (0.16%) Net Interest Margin 2.50% 2.44% 2.39% 0.06% 0.11% Non-performing Assets to Total Assets (1) 0.42% 0.58% 0.67% (0.16%) (0.25%) Allowance for Credit Losses to Total Loans 0.54% 0.53% 0.95% 0.01% (0.41%) Net Charge-offs to Average Loans(2) 0.15% 0.29% 0.17% (0.14%) (0.02%) Change From

 
Transformed Deposit mix ($ in millions) 7 $6,335 $6,820 $7,347 $4,807 $3,384 $2,976 $10,715 $11,262 $10,622 $12,660 $13,369 $13,030 $1,758 $1,771 $2,131 $3,020 $3,709 $2,872 $3,071 $3,621 $4,295 $7,009 $8,976 $9,663$21,879 $23,474 $24,395 $27,496 $29,438 $28,541 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 3/31/22 Non-interest Demand Interest Demand Money Market / Savings Time Non-interest bearing demand deposits have grown at a compound annual growth rate of 43% since December 31, 2019 Quarterly Cost of Deposits 0.94% 1.52% 1.48% 0.43% 0.19% 0.17% Non-interest bearing as % of Total Deposits 14.0% 15.4% 17.6% 25.5% 30.5% 33.9% We have successfully priced down our deposit portfolio since the Fed began lowering interest rates in late 2019 Spot Average Annual Percentage Yield (“APY”) At December 31, 2019 At December 31, 2020 At December 31, 2021 At March 31, 2022 Total non-maturity deposits 1.11% 0.29% 0.14% 0.14% Total interest-bearing deposits 1.71% 0.48% 0.23% 0.24% Total deposits 1.42% 0.36% 0.16% 0.16%

 
Prudently Underwritten and Well-Diversified Loan Portfolio At March 31, 2022 ($ in millions) 8 Loan Portfolio Over Time CRE C&I Lending Subs Residential Loan Product Type $4,949 $5,661 $6,348 $8,368 $8,613 $7,501 $7,493 $6,896 $5,702 $5,534 $6,478 $6,718 $6,448 $6,735 $6,858 $782 $249 $80 $432 $768 $1,259 $1,092 $701 $2,617 $2,515 $2,133 $1,619 $1,584$21,977 $23,155 $23,866 $23,765 $23,370 12/31/18 12/31/19 12/31/20 12/31/21 3/31/22 Residential CRE C&I PPP Mortgage Warehouse Lending Lending Subs Non-owner Occupied 78% Multi- family 19% Construction and Land 3% Pinnacle 59% Bridge - Franchise 19% Bridge - Equipment 22% Commercial and Industrial 72% Owner Occupied 28% 30 Yr Fixed 28% 15 & 20 Year Fixed 14% 10/1 ARM 12% 5/1 & 7/1 ARM 22% Formerly Covered 1% Govt Insured 23%

 
Allowance for Credit Losses

 
CECL Methodology 10 Underlying Principles Economic Forecast Key Variables • The ACL under CECL represents management’s best estimate at the balance sheet date of expected credit losses over the life of the loan portfolio. • Required to consider historical information, current conditions and a reasonable and supportable economic forecast. • For most portfolio segments, BankUnited uses econometric models to project PD, LGD and expected losses at the loan level and aggregates those expected losses by segment. • Qualitative adjustments may be applied to the quantitative results. • Accounting standard requires an estimate of expected prepayments which may significantly impact the lifetime loss estimate. • Our ACL estimate was informed by Moody’s economic scenarios published in March 2022. • Unemployment at 3.7% for Q2 2022, steadily declining to 3.5% through end of 2022 and 3.4% throughout 2023. • Annualized growth in GDP at 4.8% for Q2 2022, normalizing to an average of 3.4% and 3.2% for 2022 and 2023. • VIX trending at stabilized levels through the forecast horizon. • S&P 500 averaging 4,200 through the R&S period. • 2 year reasonable and supportable forecast period. • The models ingest numerous national, regional and MSA level economic variables and data points. Economic data and variables to which portfolio segments are most sensitive: • Commercial o Market volatility index o S&P 500 index o Unemployment rate o A variety of interest rates and spreads • CRE o Unemployment o CRE property forecast o 10-year treasury o Baa corporate yield o Real GDP growth • Residential o HPI o Unemployment rate o Real GDP growth o Freddie Mac 30-year rate

 
Drivers of Change in the ACL 11 ACL 12/31/21 ACL 3/31/22 Portfolio Changes and Migration Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 0.53% 0.54% • Risk rating migration • Changes in specific reserves • New loans • Exits/runoff • Portfolio seasoning • Changes in borrower financial condition • Portfolio composition changes • Current market adjustment • Changes to forward path of economic forecast • Additional qualitative overlay related to economic uncertainty re: fiscal and monetary policy and geopolitical events Assumption Changes

 
Allocation of the ACL 12 ($ in millions) (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.9 million, $46.1 million, and $51.3 million or 0.18%, 0.19%, and 0.22%, of total loans and 0.12%, 0.13%, and 0.15% of total assets, at March 31, 2022, December 30, 2021, and December 31, 2020, respectively. (2) ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.61%, 0.62%, and 1.26% at March 31, 2022, December 31, 2021, and December 31, 2020, respectively. See section entitled “Non-GAAP Financial Measures” on page 28. (3) Annualized for the period ended March 31, 2022. Balance % of Loans Balance % of Loans Balance % of Loans Residential and other consumer 18.7$ 0.29% 9.2$ 0.11% 9.0$ 0.10% Commercial: Commercial real estate 104.6 1.52% 28.1 0.49% 23.9 0.43% Commercial and industrial 91.0 1.07% 68.7 0.85% 75.3 0.99% Pinnacle 0.3 0.03% 0.2 0.02% 0.1 0.01% Franchise finance 36.3 6.61% 16.7 4.90% 14.4 4.71% Equipment finance 6.4 1.34% 3.6 1.00% 2.7 0.78% Total commercial 238.6 1.36% 117.3 0.76% 116.4 0.79% Allowance for credit losses(2) 257.3$ 1.08% 126.5$ 0.53% 125.4$ 0.54% December 31, 2020 March 31, 2022December 31, 2021 Asset Quality Ratios December 31, 2020 December 31, 2021 March 31, 2022 Non-performing loans to total loans (1) 1.02% 0.87% 0.65% Non-performing assets to total assets (1) 0.71% 0.58% 0.42% Allowance for credit losses to non-performing loans (1) 105.26% 61.41% 83.17% Net charge-offs to average loans (3) 0.26% 0.29% 0.15%

 
Loan Portfolio and Credit

 
Loan Portfolio – Geographic Distribution At March 31, 2022 Commercial (1) Residential CRE (1) Includes PPP, MWL, BFG and Pinnacle 14 FL 39% NY Tri-State Area 23% Other 38% CA 32% FL 7% NY 21% Other 40% FL 59% NY Tri-State Area 32% Other 9%

 
15 Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio At March 31, 2022 ($ in millions) • Includes $1.9 billion of owner- occupied real estate • Some key observations: • Educational services – well established private colleges, universities and high schools • Transportation and warehousing – cruise lines, aviation authorities, logistics • Health care – larger physician practice management companies, HMO’s, mental health & substance abuse; no small practices • Arts and entertainment – stadiums, professional sports teams, gaming • Accommodation and food services – time share, direct food services businesses and concessionaires (1) Excludes PPP loans Industry Balance(1) Commitment % of Portfolio Finance and Insurance 1,162$ 2,152$ 16.9% Educational Services 673 731 9.8% Wholesale Trade 669 913 9.8% Health Care and Social Assistance 488 671 7.1% Transportation and Warehousing 459 548 6.7% Manufacturing 439 647 6.4% Information 415 634 6.1% Real Estate and Rental and Leasing 404 724 5.9% Utilities 317 416 4.6% Construction 292 465 4.3% Retail Trade 281 345 4.1% Other Services (except Public Administration) 231 305 3.4% Professional, Scientific, and Technical Services 229 335 3.3% Public Administration 202 217 2.9% Accommodation and Food Services 181 229 2.6% Administrative and Support and Waste Management 172 231 2.5% Arts, Entertainment, and Recreation 164 191 2.4% Other 79 95 1.2% 6,857$ 9,849$ 100.0%

 
Loan Portfolio – Commercial Real Estate by Property Type At March 31, 2022 • Commercial real estate loans are secured by income-producing, non-owner occupied properties, typically with well capitalized middle market sponsors. • All non-performing hotel loans are in the SBA portfolio. • NY commercial real estate portfolio contains $119 million of mixed-used properties; $55 million included in the table above in multi-family, $46 million in retail and $18 million in office. ($ in millions) 16 Property Type Balance FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Non- Performing Special Mention Classified Office 1,827$ 60% 25% 15% 2.43 65.3% 1$ 31$ 73$ Multifamily 1,157 43% 55% 2% 2.18 56.4% 11 - 187 Retail 1,012 58% 34% 8% 1.84 64.1% 9 - 112 Warehouse/Industrial 895 67% 21% 12% 2.41 58.4% - - 1 Hotel 505 82% 10% 8% 1.69 58.3% 14 1 136 Other 138 58% 26% 16% 2.42 51.6% 7 - 17 5,534$ 59% 32% 9% 2.20 61.1% 42$ 32$ 526$

 
Credit Quality – Residential At March 31, 2022 High quality residential portfolio consists of primarily prime jumbo mortgages with de-minimis charge- offs since inception as well as fully government insured assets FICO Distribution(1) Breakdown by LTV(1) Breakdown by Vintage(1) (1) Excludes government insured residential loans. FICOs are refreshed routinely. LTVs are typically based on valuation at origination. 17 <720 or NA 9% 720-759 18% >759 73% Prior 24% 2018 3% 2019 6% 2020 15% 2021 48% 2022 4% 60% or less 38% 61% - 70% 26% 71% - 80% 35% More than 80% 1%

 
Asset Quality Metrics Non-performing Loans to Total Loans Non-performing Assets to Total Assets Net Charge-offs to Average Loans(1) (1) YTD net charge-offs, annualized at March 31, 2022. 18 0.88% 1.02% 0.87% 0.65% 0.68% 0.80% 0.68% 0.47% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 12/31/21 3/31/22 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 0.63% 0.71% 0.58% 0.42% 0.49% 0.56% 0.45% 0.30% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 12/31/21 3/31/22 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 0.05% 0.26% 0.29% 0.15% 0.00% 0.20% 0.40% 0.60% 12/31/19 12/31/20 12/31/21 3/31/2022 • Loans currently under short-term deferral or modified under the CARES Act totaled $149 million at March 31, 2022, down from a total of $205 million at December 31, 2021. • All commercial loans that have rolled off of CARES Act modifications have paid off or resumed regular payments.

 
Non-Performing Loans by Portfolio Segment ($ in millions) (1) Includes the guaranteed portion of non-accrual SBA loans totaling $41.9 million, $46.1 million, $51.3 million, and $45.7 million at March 31, 2022, December 31, 2021, December 31, 2020, and December 31, 2019, respectively. $19 $29 $29 $20 $18 $36 $19 $9 $6 $24 $11 $11 $65 $43 $58 $32 $21 $14 $45 $33 $28 $62 $67 $56 $51 $205 $244 $206 $151 12/31/19 12/31/20 12/31/21 3/31/22 Residential and Other Consumer CRE Multifamily C&I Equipment Franchise SBA(1) 19

 
Criticized and Classified Loans ($ in millions) Commercial Real Estate Commercial & Industrial (1) Franchise Finance(3) Equipment Finance SBA(2) (1) Substandard non-accruing and doubtful includes $6.8 million and $27.8 million of loans rated doubtful at March 31, 2022 and December 31, 2021, respectively. (2) Includes the guaranteed portion of non-accrual SBA loans totaling $41.9 million, $46.1 million, $51.3 million, $45.7 million, at March 31, 2022, December 31, 2021, December 31, 2020, and December 31, 2019, respectively. (3) Substandard non-accruing and doubtful includes $20.0 million of loans rated doubtful at both March 31, 2022 and December 31, 2021. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 12/31/21 3/31/22 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 12/31/21 3/31/22 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 12/31/21 3/31/22 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 12/31/21 3/31/22 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 12/31/21 3/31/22 20

 
Criticized and Classified – CRE by Property Type ($ in millions) Office Multifamily Retail Warehouse/Industrial Hotel Other $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 21

 
Criticized and Classified – BFG Franchise Finance ($ in millions) Restaurant Concepts(1) Fitness Concepts Other $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 12/31/21 3/31/22 $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 12/31/21 3/31/22 $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 12/31/21 3/31/22 22 (1) Substandard non-accruing and doubtful includes $20.0 million of loans rated doubtful at both December 31, 2021 and March 31, 2022.

 
Asset Quality – Delinquencies ($ in millions) Commercial(1) CRE Residential (2) (1) Includes lending subsidiaries (2) Excludes government insured residential loans. $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 12/31/21 3/31/22 $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 12/31/21 3/31/22 $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 12/31/21 3/31/22 23

 
Investment Portfolio

 
25 Investment Securities AFS ($ in thousands) Portfolio Composition Ratings Distribution NR 1% Gov 30% AAA 59% AA 7% A 3% US Government and agency 30% Private label RMBS and CMOs 26% Private label CMBS 26% Residential real estate lease- backed securities 5% CLO 10% State Municipal Obligations 2% Other 1% Portfolio Net Unrealized Gain(Loss) Fair Value Net Unrealized Gain(Loss) Fair Value Net Unrealized Gain(Loss) Fair Value US Government and agency 24,682$ 3,025,775$ (3,939)$ 3,249,950$ (56,692)$ 3,150,849$ Private label RMBS and CMOs 15,713 998,603 (10,716) 2,149,420 (119,128) 2,708,041 Private label CMBS 12,083 2,526,354 (680) 2,604,010 (40,945) 2,711,986 Residential real estate lease-backed securities 14,819 650,888 2,123 476,968 (12,242) 493,869 CLOs (8,450) 1,140,274 (931) 1,078,286 (6,740) 1,072,480 State and Municipal Obligations 21,966 235,709 16,559 222,277 2,359 207,279 Other 4,822 484,806 1,419 152,510 (1,884) 117,398 85,635$ 9,062,409$ 3,835$ 9,933,421$ (235,272)$ 10,461,902$ December 31, 2020 March 31, 2022December 31, 2021

 
26 Investment Securities – Asset Quality of Select Non-Agency Securities At March 31, 2022 Strong credit enhancement levels on Private Label RMBS and CMBS Private Label RMBS Private Label CMBS AAA 84% AA 11% A 5% Rating Min Max Avg AAA 30.0 88.5 44.3 7.4 AA 28.5 92.5 40.1 7.8 A 23.7 69.0 32.4 6.7 Wtd. Avg. 29.5 88.0 43.3 7.4 Subordination Wtd. Avg. Stress Scenario Loss Rating Min Max Avg AAA 2.9 81.5 17.2 2.3 AA 19.9 30.4 23.0 5.4 A 18.3 20.7 18.5 5.4 Wtd. Avg. 3.7 78.6 17.3 2.5 Subordination Wtd. Avg. Stress Scenario Loss AAA 95% AA 1% A 4%

 
Non-GAAP Financial Measures

 
28 Non-GAAP Financial Measures (continued) ACL to total loans, excluding government insured residential loans, PPP and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions and is a measure cited by analysts. The following table reconciles the non- GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands): March 31, 2022 December 31, 2021 December 31, 2020 Total loans (GAAP) 23,370,029$ 23,765,053$ 23,866,042$ Less: Government insured residential loans 1,938,479 2,023,221 1,419,074 Less: PPP loans 80,296 248,505 781,811 Less: MWL 701,172 1,092,133 1,259,408 Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) 20,650,082$ 20,401,194$ 20,405,749$ ACL 125,443$ 126,457$ 257,323$ ACL to total loans (GAAP) 0.54% 0.53% 1.08% ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) 0.61% 0.62% 1.26%

 
29 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 March 31, 2022 (in thousands except share and per share data): March 31, 2022 Total stockholders’ equity (GAAP) 2,861,232$ Less: goodwill 77,637 Tangible stockholders’ equity (non-GAAP) 2,783,595$ Common shares issued and outstanding 84,052,021 Book value per common share (GAAP) 34.04$ Tangible book value per common share (non-GAAP) 33.12$