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0001504008false00015040082023-04-252023-04-250001504008exch:XNYS2023-04-252023-04-25


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 25, 2023 (April 25, 2023)

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 25, 2023, BankUnited, Inc. (the “Company”) reported its results for the quarter ended March 31, 2023. 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 25, 2023
April 25, 2023
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 25, 2023BANKUNITED, INC.
 /s/ Leslie N. Lunak
 Name:Leslie N. Lunak
 Title:Chief Financial Officer


3




EXHIBIT INDEX
 
Exhibit
Number		 Description
 April 25, 2023
April 25, 2023




4
Document

Exhibit 99.1
BANKUNITED, INC. REPORTS FIRST QUARTER 2023 RESULTS

Miami Lakes, Fla. — April 25, 2023 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2023.
"While March was a challenging month for the banking industry, BankUnited continued to support its customers and serve their banking needs. Our business is stable, we have strong liquidity and robust capital," said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended March 31, 2023, the Company reported net income of $52.9 million, or $0.70 per diluted share, compared to $64.2 million, or $0.82 per diluted share for the immediately preceding quarter ended December 31, 2022 and $67.2 million, or $0.79 per diluted share, for the quarter ended March 31, 2022.
Quarterly Highlights
•Our liquidity position is strong. At March 31, 2023, the Bank had total same day available liquidity of approximately $9.4 billion. As of April 21, 2023, available liquidity had increased to approximately $12.3 billion. At March 31, 2023, the Bank's ratio of estimated insured and collateralized deposits to total deposits was 62% and its available liquidity to estimated uninsured, uncollateralized deposits ratio was 95%. As of April 21, 2023, the ratio of available liquidity to estimated uninsured, uncollateralized deposits was approximately 128%.
•The Bank initially experienced deposit outflows at the onset of recent events impacting the banking sector, however, deposit flows quickly stabilized. Total deposits declined by $1.79 billion during the quarter ended March 31, 2023, including non-interest bearing demand deposits declining by $671 million. Deposit outflows over the latter part of March, 2023 were concentrated in a small number of larger institutional depositors. Non-interest bearing demand deposits were 29% of total deposits at both March 31, 2023 and December 31, 2022.
•Net interest income and the net interest margin for the quarter ended March 31, 2023 were negatively impacted by an increase in the cost of funds which more than offset the increased yield on interest-earning assets. A greater than anticipated decline in average non-interest bearing deposits and an increase in on-balance sheet liquidity led to an increase in higher cost deposits and FHLB advances. The net interest margin, calculated on a tax-equivalent basis, was 2.62% for the quarter ended March 31, 2023, compared to 2.81% for the immediately preceding quarter ended December 31, 2022 and 2.50% for the quarter ended March 31, 2022. Net interest income decreased by $15.2 million, compared to the immediately preceding quarter ended December 31, 2022 and increased by $19.2 million compared to the quarter ended March 31, 2022.
•In response to the rising interest rate environment, tightening liquidity conditions and recent events impacting the banking sector, the average cost of total deposits rose to 2.05% for the quarter ended March 31, 2023, from 1.42% for the immediately preceding quarter ended December 31, 2022. The yield on average interest earning assets increased to 5.05% for the quarter ended March 31, 2023, from 4.60% for the immediately preceding quarter.
•For the quarter ended March 31, 2023, the provision for credit losses was $19.8 million compared to provisions of $39.6 million and $7.8 million for the quarters ended December 31, 2022 and March 31, 2022, respectively. The ratio of the ACL to total loans increased to 0.64%, at March 31, 2023 from 0.59% at December 31, 2022.
•Non-interest income for the quarter ended March 31, 2023 included a $13.3 million net loss on certain preferred equity investments.
•Total loans was flat quarter-over-quarter, with a $111 million decline in residential offsetting net growth in the commercial segments of $118 million. The core C&I and CRE portfolio segments grew by $144 million.
•The pre-tax net unrealized loss on investment securities available for sale ("AFS") improved by $100 million during the quarter ended March 31, 2023 to $574 million from $674 million at December 31, 2022. The duration of the AFS portfolio was 1.95 at March 31, 2023. Securities held to maturity totaled only $10 million at March 31, 2023.
•The Company announced an increase of $0.02 per share in its common stock dividend for the quarter ended March 31, 2023, to $0.27 per common share, reflecting an 8% increase from the previous level of $0.25 per share.
1

•During the quarter ended March 31, 2023, the Company repurchased approximately 1.6 million shares of its common stock for an aggregate purchase price of $55.0 million, at a weighted average price of $33.41 per share.
•CET1 was 10.8% at the holding company and 12.5% at the Bank at March 31, 2023. Pro-forma CET1 at the holding company, including accumulated other comprehensive income, was 9.4%.
•Book value and tangible book value per common share improved to $33.34 and $32.30, respectively, at March 31, 2023, from $32.19 and $31.16, respectively at December 31, 2022.
Deposits and Liquidity
Total deposits declined by $1.79 billion during the quarter ended March 31, 2023. Deposits declined by $1.75 billion during the week of March 13, 2023 and then stabilized, increasing by $245 million through the remainder of the quarter. Outflows from a small number of larger institutional clients the week of March 13 drove $1.9 billion of outflows. Deposit flows across the remainder of the core deposit book appeared to be within the range of what we consider to be normal operating activity during this period. The cost of total deposits increased to 2.05% from 1.42% for the immediately preceding quarter, while the cost of interest bearing deposits increased to 2.86% for the quarter ended March 31, 2023, from 2.06% for the preceding quarter.
At April 21, 2023 and March 31, 2023 same day available liquidity totaled approximately $12.3 billion and $9.4 billion, respectively, including cash, borrowing capacity at the Federal Home Loan Bank of Atlanta and the Federal Reserve and unencumbered securities. Additional sources of liquidity include cash flows from operations, wholesale deposits and cash flow from the Bank's amortizing securities and loan portfolios.
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
March 31, 2023December 31, 2022
Residential (1)
$8,789,744 35.3 %$8,900,714 35.7 %
Non-owner occupied commercial real estate5,346,895 21.5 %5,405,597 21.7 %
Construction and land324,805 1.3 %294,360 1.2 %
Owner occupied commercial real estate1,863,333 7.5 %1,890,813 7.6 %
Commercial and industrial6,617,716 26.5 %6,417,721 25.9 %
Pinnacle919,584 3.7 %912,122 3.7 %
Bridge - franchise finance239,205 1.0 %253,774 1.0 %
Bridge - equipment finance266,715 1.1 %286,147 1.1 %
Mortgage warehouse lending ("MWL")524,897 2.1 %524,740 2.1 %
$24,892,894 100.0 %$24,885,988 100.0 %
(1)    Includes other consumer loans totaling $4 million and $6 million at March 31, 2023 and December 31, 2022, respectively.
For the quarter ended March 31, 2023, $173 million of growth in the commercial and industrial segment, including owner-occupied commercial real estate, was offset by declines of $111 million in residential, $28 million in commercial real estate and $27 million for Bridge and Pinnacle, while MWL balances remained flat.
Asset Quality and the Allowance for Credit Losses ("ACL")
Non-performing loans totaled $114.2 million or 0.46% of total loans at March 31, 2023, compared to $105.0 million or 0.42% of total loans at December 31, 2022. Non-performing loans included $36.9 million and $40.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.15% and 0.16% of total loans at March 31, 2023 and December 31, 2022, respectively.
2

The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
March 31, 2023December 31, 2022
Special mention$101,781 $51,433 
Substandard - accruing596,054 605,965 
Substandard - non-accruing82,840 75,125 
Doubtful7,699 7,990 
Total $788,374 $740,513 
The increase in criticized and classified assets relates primarily to one multi-family loan that migrated to special mention during the quarter and subsequently paid off.
The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the periods ended March 31, 2023 and December 31, 2022 (dollars in thousands):
ACLACL to Total LoansACL to Non-Performing Loans
Net Charge-offs to Average Loans (1)
December 31, 2022$147,946 0.59 %140.88 %0.22 %
March 31, 2023$158,792 0.64 %139.01 %0.08 %
(1)    Annualized for the three months ended March 31, 2023
The ACL at March 31, 2023 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions, and a reasonable and supportable economic forecast as of the balance sheet date. For the quarter ended March 31, 2023, the provision for credit losses was $19.8 million, including $17.6 million related to funded loans. The more significant factors impacting the provision for credit losses and increase in the ACL for the quarter ended March 31, 2023 were a deteriorating economic forecast and an increase in certain specific reserves.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
Three Months Ended
 March 31, 2023December 31, 2022March 31, 2022
Beginning balance$147,946 $130,671 $126,457 
Impact of adoption of new accounting pronouncement (ASU 2022-02)(1,794)N/AN/A
Balance after impact of adoption of new accounting pronouncement (ASU 2022-02)146,152 130,671 126,457 
Provision17,595 40,408 7,446 
Net charge-offs(4,955)(23,133)(8,460)
Ending balance$158,792 $147,946 $125,443 
Net Interest Income
Net interest income for the quarter ended March 31, 2023 was $227.9 million, compared to $243.1 million for the immediately preceding quarter ended December 31, 2022 and $208.6 million for the quarter ended March 31, 2022. Interest income increased by $38.9 million for the quarter ended March 31, 2023, compared to the immediately preceding quarter while interest expense increased by $54.1 million.
The Company’s net interest margin, calculated on a tax-equivalent basis, decreased by 0.19% to 2.62% for the quarter ended March 31, 2023, from 2.81% for the immediately preceding quarter ended December 31, 2022. Overall, the net interest margin was negatively impacted by an increase in the cost of interest-bearing deposits and FHLB advances, more than offsetting the increased yield on interest earning assets. A decline in average non-interest bearing deposits and an increase in on-balance sheet liquidity contributed to an increase in higher-cost funding.
More detail about factors impacting the net interest margin for the quarter ended March 31, 2023 follows:
•The tax-equivalent yield on investment securities increased to 4.95% for the quarter ended March 31, 2023, from 4.33% for the quarter ended December 31, 2022. This increase resulted primarily from the reset of coupon rates on variable rate securities.
3

•The tax-equivalent yield on loans increased to 5.10% for the quarter ended March 31, 2023, from 4.72% for the quarter ended December 31, 2022. The resetting of variable rate loans to higher coupon rates and origination of new loans at higher rates contributed to the increase.
•The average rate paid on interest bearing deposits increased to 2.86% for the quarter ended March 31, 2023 from 2.06% for the quarter ended December 31, 2022, in response to the rising interest rate environment, tightening liquidity conditions and the shift from non-interest bearing deposits to deposits priced at current, higher market rates.
•The average rate paid on FHLB advances increased to 4.27% for the quarter ended March 31, 2023, from 3.44% for the quarter ended December 31, 2022, primarily due to higher prevailing rates
•Average non-interest bearing demand deposits declined by $0.8 billion while average cash balances increased by $0.3 billion for the quarter. Correspondingly, the increase in average interest-bearing sources of funds added to the balance sheet at higher current rates totaled $1.1 billion for the quarter. The estimated impact of this shift on the net interest margin for the quarter was 0.14%.
Non-interest income and Non-interest expense
Non-interest income totaled $16.5 million for the quarter ended March 31, 2023, compared to $26.8 million for the quarter ended December 31, 2022 and $14.3 million for the quarter ended March 31, 2022. The quarter over quarter decline is primarily attributable to a $13.3 million loss on certain preferred equity investments during the quarter ended March 31, 2023.
Non-interest expense totaled $152.8 million for the quarter ended March 31, 2023, compared to $148.5 million for the immediately preceding quarter ended December 31, 2022 and $126.3 million for the quarter ended March 31, 2022.
•The year-over-year increases in employee compensation and benefits and in technology expense reflected labor market dynamics and continued investment in people and technology to support future growth.
•Deposit insurance expense increased by $4.5 million compared to the quarter ended March 31, 2022, reflecting an increase in the assessment rate.
•Other non-interest expense for the quarter ended March 31, 2023 included $4.4 million related to certain operational losses. Costs related to deposit rebate and commission programs increased by $6.9 million for the quarter ended March 31, 2023 compared to the first quarter of the prior year.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Tuesday, April 25, 2023 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BId759d8eca4204944ae8b5c726fc19e7c. For those unable to join the live event, an archived webcast will be available in the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.
About BankUnited, Inc.
BankUnited, Inc., with total assets of $37.2 billion at March 31, 2023, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida that provides a full range of banking and related services to individual and corporate customers through banking centers located in the state of Florida, New York metropolitan area and Dallas, Texas, and a comprehensive suite of wholesale products to customers through an Atlanta office focused in the Southeast region. BankUnited also offers certain commercial lending and deposit products through national platforms. For additional information, call (877) 779-2265 or visit www.BankUnited.com.
4

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, such as adverse events impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov).
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,
2023		December 31,
2022
ASSETS  
Cash and due from banks:  
Non-interest bearing$15,740 $16,068 
Interest bearing888,258 556,579 
Cash and cash equivalents 903,998 572,647 
Investment securities (including securities reported at fair value of $9,523,599 and $9,745,327)9,533,599 9,755,327 
Non-marketable equity securities384,697 294,172 
Loans24,892,894 24,885,988 
Allowance for credit losses (158,792)(147,946)
Loans, net24,734,102 24,738,042 
Bank owned life insurance 318,305 308,212 
Operating lease equipment, net526,311 539,799 
Goodwill77,637 77,637 
Other assets710,554 740,876 
Total assets$37,189,203 $37,026,712 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Demand deposits:  
Non-interest bearing$7,366,642 $8,037,848 
Interest bearing2,505,150 2,142,067 
Savings and money market10,601,129 13,061,341 
Time5,249,977 4,268,078 
Total deposits25,722,898 27,509,334 
Federal funds purchased— 190,000 
FHLB advances7,550,000 5,420,000 
Notes and other borrowings720,787 720,923 
Other liabilities714,124 750,474 
Total liabilities 34,707,809 34,590,731 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,423,365 and 75,674,587 shares issued and outstanding
744 757 
Paid-in capital269,353 321,729 
Retained earnings2,585,981 2,551,400 
Accumulated other comprehensive loss(374,684)(437,905)
Total stockholders' equity 2,481,394 2,435,981 
Total liabilities and stockholders' equity $37,189,203 $37,026,712 

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,
 202320222022
Interest income:  
Loans$308,795 $288,973 $191,562 
Investment securities118,758 105,172 43,048 
Other12,863 7,345 1,354 
Total interest income 440,416 401,490 235,964 
Interest expense:
Deposits133,630 94,403 11,857 
Borrowings78,912 64,021 15,465 
Total interest expense 212,542 158,424 27,322 
Net interest income before provision for credit losses 227,874 243,066 208,642 
Provision for credit losses 19,788 39,608 7,830 
Net interest income after provision for credit losses 208,086 203,458 200,812 
Non-interest income:
Deposit service charges and fees5,545 5,482 5,960 
Gain (loss) on investment securities, net(12,549)320 (7,868)
Lease financing13,109 14,153 13,415 
Other non-interest income10,430 6,858 2,794 
Total non-interest income 16,535 26,813 14,301 
Non-interest expense:
Employee compensation and benefits71,051 69,902 67,088 
Occupancy and equipment 10,802 10,770 11,512 
Deposit insurance expense7,907 6,205 3,403 
Professional fees 2,918 3,028 2,262 
Technology21,726 22,388 17,004 
Depreciation and impairment of operating lease equipment11,521 12,547 12,610 
Other non-interest expense26,855 23,639 12,445 
Total non-interest expense 152,780 148,479 126,324 
Income before income taxes71,841 81,792 88,789 
Provision for income taxes18,959 17,585 21,639 
Net income$52,882 $64,207 $67,150 
Earnings per common share, basic$0.71 $0.83 $0.79 
Earnings per common share, diluted$0.70 $0.82 $0.79 

7

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
Three Months Ended March 31, 2023Three Months Ended December 31, 2022Three Months Ended March 31, 2022
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans$24,724,296 $312,125 5.10 %$24,624,062 $292,272 4.72 %$23,349,143 $194,551 3.36 %
Investment securities (3)
9,672,514 119,666 4.95 %9,788,969 106,034 4.33 %10,083,083 43,719 1.73 %
Other interest earning assets1,039,563 12,863 5.02 %710,315 7,345 4.10 %674,640 1,354 0.81 %
Total interest earning assets35,436,373 444,654 5.05 %35,123,346 405,651 4.60 %34,106,866 239,624 2.83 %
Allowance for credit losses(151,071)(137,300)(129,028)
Non-interest earning assets1,793,000 1,837,156 1,674,476 
Total assets$37,078,302 $36,823,202 $35,652,314 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$2,283,505 $10,545 1.87 %$2,183,854 $6,704 1.22 %$3,078,037 $1,364 0.18 %
Savings and money market deposits12,145,922 91,724 3.06 %12,054,892 68,001 2.24 %13,401,332 6,931 0.21 %
Time deposits4,526,480 31,361 2.81 %3,960,111 19,698 1.97 %3,319,585 3,562 0.44 %
Total interest bearing deposits18,955,907 133,630 2.86 %18,198,857 94,403 2.06 %19,798,954 11,857 0.24 %
Federal funds purchased143,580 1,611 4.49 %175,637 1,677 3.74 %187,539 58 0.12 %
FHLB advances6,465,000 68,039 4.27 %6,125,435 53,084 3.44 %2,248,889 6,146 1.11 %
Notes and other borrowings720,906 9,262 5.14 %721,044 9,260 5.14 %721,405 9,261 5.13 %
Total interest bearing liabilities26,285,393 212,542 3.28 %25,220,973 158,424 2.49 %22,956,787 27,322 0.48 %
Non-interest bearing demand deposits7,458,221 8,237,885 9,047,864 
Other non-interest bearing liabilities821,419 879,207 623,200 
Total liabilities34,565,033 34,338,065 32,627,851 
Stockholders' equity2,513,269 2,485,137 3,024,463 
Total liabilities and stockholders' equity$37,078,302 $36,823,202 $35,652,314 
Net interest income$232,112 $247,227 $212,302 
Interest rate spread1.77 %2.11 %2.35 %
Net interest margin2.62 %2.81 %2.50 %
(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,
c20232022
Basic earnings per common share: 
Numerator:
Net income$52,882 $67,150 
Distributed and undistributed earnings allocated to participating securities
(798)(929)
Income allocated to common stockholders for basic earnings per common share$52,084 $66,221 
Denominator:
Weighted average common shares outstanding74,755,002 84,983,873 
Less average unvested stock awards(1,193,881)(1,211,807)
Weighted average shares for basic earnings per common share73,561,121 83,772,066 
Basic earnings per common share$0.71 $0.79 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share$52,084 $66,221 
Adjustment for earnings reallocated from participating securities
3 1 
Income used in calculating diluted earnings per common share$52,087 $66,222 
Denominator:
Weighted average shares for basic earnings per common share73,561,121 83,772,066 
Dilutive effect of certain share-based awards447,581 137,704 
Weighted average shares for diluted earnings per common share
74,008,702 83,909,770 
Diluted earnings per common share$0.70 $0.79 

9


BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 At or for the Three Months Ended
 March 31, 2023December 31, 2022March 31, 2022
Financial ratios (4)
  
Return on average assets0.58 %0.69 %0.76 %
Return on average stockholders’ equity8.5 %10.3 %9.0 %
Net interest margin (3)
2.62 %2.81 %2.50 %
Tangible book value per common share$32.30 $31.16 $33.12 
 March 31, 2023December 31, 2022
Asset quality ratios  
Non-performing loans to total loans (1)(5)
0.46 %0.42 %
Non-performing assets to total assets (2)(5)
0.32 %0.29 %
Allowance for credit losses to total loans0.64 %0.59 %
Allowance for credit losses to non-performing loans (1)(5)
139.01 %140.88 %
Net charge-offs to average loans (4)
0.08 %0.22 %
(1)    We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.
(2)    Non-performing assets include non-performing loans, OREO and other repossessed assets.
(3)    On a tax-equivalent basis.
(4) Annualized for the three month periods as applicable.
(5)    Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $36.9 million or 0.15% of total loans and 0.10% of total assets at March 31, 2023 and $40.3 million or 0.16% of total loans and 0.11% of total assets at December 31, 2022.

March 31, 2023December 31, 2022Required to be Considered Well Capitalized
BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.
Capital ratios
Tier 1 leverage7.4 %8.6 %7.5 %8.4 %5.0 %
Common Equity Tier 1 ("CET1") risk-based capital10.8 %12.5 %11.0 %12.4 %6.5 %
Total risk-based capital12.6 %13.1 %12.7 %12.9 %10.0 %
10

Non-GAAP Financial Measures
Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data): 
March 31, 2023December 31, 2022March 31, 2022
Total stockholders’ equity$2,481,394 $2,435,981 $2,861,232
Less: goodwill and other intangible assets77,637 77,637 77,637
Tangible stockholders’ equity$2,403,757 $2,358,344 $2,783,595 
Common shares issued and outstanding74,423,365 75,674,587 84,052,021
Book value per common share$33.34 $32.19 $34.04 
Tangible book value per common share$32.30 $31.16 $33.12 
11
exhibit99203312023
April 25, 2023 Q1 2023 – Supplemental Information 1 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, such as adverse events impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov). 2

 
Quarterly Highlights 3

 
Topics of Current Interest 4 Strong Liquidity Position Securities Portfolio Asset Quality Robust Capital Base • Same day available liquidity of $12.3 billion at April 21 • Available liquidity to uninsured, uncollateralized deposits ratio of 128% at April 21 • Pre-tax unrealized loss on AFS securities improved by $100 million during the quarter to 5.7% of amortized cost • HTM securities totaled only $10 million at March 31; de-minimis unrealized loss • AFS portfolio duration of 1.95 at March 31 • NPA ratio of 0.32% at March 31; 0.22% excluding guaranteed portion of non-accrual SBA loans • Annualized net charge-off rate of 0.08% • High quality CRE portfolio; wtd average DSCR 1.92; wtd average LTV 56.8%; 60% Florida • Total CRE exposure reduced/de-risked by $1.8 billion or 24% since pre-pandemic • CET1 ratios of 10.8% at the holding company and 12.5% at the bank • Pro-forma CET1 at the holding company of 9.4% including AOCI • Repurchased $55 million of common stock in Q1; repurchases have been paused • Book value and tangible book value per share grew to $33.34 and $32.30 (1) (1) Tangible book value per share is a non-GAAP financial measure. See section entitled “Non-GAAP Financial Measures” on page 29. Deposits • Deposits declined by $1.8 billion for the quarter – $1.9 billion of outflows week of March 13 from an isolated group of larger clients • Deposit flows quickly stabilized; successfully protected core deposit relationships amidst deposit pressure – majority of core deposit base remained stable throughout • 62% of our deposits are insured or collateralized at March 31 • Non-interest bearing DDA consistent at 29% of total deposits

 
Highlights from First Quarter Earnings 5 (1) Includes guaranteed portion of non-accrual SBA loans. (2) Annualized for the period ended March 31, 2023; Q4 2022 value is for fiscal 2022. ($ in millions, except per share data) Q1 23 Q4 22 Change Key Highlights Net Interest Income $228 $243 ($15) Provision for Credit Losses $20 $40 ($20) Deterioration in economic forecast and specific reserves Total Non-interest Income $17 $27 ($10) Q1 2023 includes $13 million loss on preferred equity investments Total Non-interest Expense $153 $148 $5 Net Income $53 $64 ($11) EPS $0.70 $0.82 ($0.12) Period-end Loans $24,893 $24,886 $7 Residential runoff offset by net growth in commercial segments Period-end Non-interest DDA $7,367 $8,038 ($671) Period-end Deposits $25,723 $27,509 ($1,786) CET1 10.8% 11.0% (0.2%) Total Capital 12.6% 12.7% (0.1%) Yield on Loans 5.10% 4.72% 0.38% Yield on Securities 4.95% 4.33% 0.62% Cost of Deposits 2.05% 1.42% 0.63% Higher cost funding related to DDA outflows and elevated liquidity Net Interest Margin 2.62% 2.81% (0.19%) Non-performing Assets to Total Assets (1) 0.32% 0.29% 0.03% Allowance for Credit Losses to Total Loans 0.64% 0.59% 0.05% Net Charge-offs to Average Loans(2) 0.08% 0.22% (0.14%)

 
Deposits, Liquidity and Interest Rate Risk 6

 
Primary Strategic Focus - Deposit Base Transformation ($ in millions) 7 Quarterly Cost of Deposits 0.94% 1.52% 1.48% 0.43% 0.19% 1.42% 2.05% Non-interest bearing as % of Total Deposits 14.0% 15.4% 17.6% 25.5% 30.5% 29.2% 28.6% Spot Average Annual Percentage Yield (“APY”) At December 31, 2019 At December 31, 2020 At December 31, 2021 At December 31, 2022 At March 31, 2023 Target Federal Funds Rate Upper Limit 1.75% 0.25% 0.25% 4.50% 5.00% Total non-maturity deposits 1.11% 0.29% 0.14% 1.83% 2.00% Total interest-bearing deposits 1.71% 0.48% 0.23% 2.66% 3.11% Total deposits 1.42% 0.36% 0.16% 1.92% 2.27% Target Federal Funds Rate Upper Limit less Spot APY of Total Deposits 0.33% (0.11%) 0.09% 2.58% 2.73% $6,335 $6,820 $7,347 $4,807 $3,384 $4,268 $5,250 $10,715 $11,262 $10,622 $12,660 $13,369 $13,061 $10,601 $1,758 $1,771 $2,131 $3,020 $3,709 $2,142 $2,505 $3,071 $3,621 $4,295 $7,009 $8,976 $8,038 $7,367 $21,879 $23,474 $24,395 $27,496 $29,438 $27,509 $25,723 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 Non-interest Demand Interest Demand Money Market / Savings Time

 
Deposit Flows Have Stabilized ($ in millions) 8 • Deposit flows prior to March 10 consistent with industry trends and historical patterns • Late quarter deposit flows normalized after an initial week of volatility • $1.9 billion of outflows during the week of 3/13/23 attributed to a small number of larger institutional customers • Deposit flows since 3/31/23 have been within the range of normal daily operational activity Deposits at 12/31/22 Deposits at 03/31/23 12/31/2022 – 3/10/2023 Week of 3/13/2023 Week of 3/20/2023 Week of 3/27/2023 Deposit Portfolio Characteristics: • No VC or crypto- related business • 61% commercial or municipal​ • Over 80% of commercial deposits considered relationship deposits​ • Diverse deposit book by industry sector; largest segment title solutions at $2 billion – no other sectors exceeding $1 billion • Over 85% of title segment deposits in operating accounts • Title segment includes over 8,000 accounts across approx. 950 relationships; segment grew over $100mm in March • Deposits in the ICS program increased from $94 million at 3/13 to $574 million at 4/21

 
Available Liquidity Covers all Uninsured Deposits ($ in millions) 9 Insured Deposits (1) As expected to be reported on the 3/31/23 Call Report. (2) Cash + Capacity at FHLB + Capacity at FRB + unencumbered securities at estimated liquidity value. (3) Estimated. Total Deposits at March 31, 2023 $ 25,723 Estimated Uninsured Deposits (1) $ 12,961 Less: Collateralized deposits (1) (2,866) Less: Affiliate deposits (231) Adjusted Uninsured Deposits $ 9,864 Estimated Insured and Collateralized Deposits $ 15,859 Insured and Collateralized Deposits to Total Deposits at March 31, 2023 62% March 31, 2023 April 21, 2023 (3) Avaialble Liquidity (2) $ 9,415 $ 12,294 Available Liquidity to Uninsured, Uncollateralized Deposits Ratio 95% 128%

 
Liquidity is Strong and Stable ($ in millions) 10 Cash $887 Cash $1,001 FHLB Capacity $2,919 FHLB Capacity $3,019 Capacity at the Fed $4,568 Capacity at the Fed $7,433 Unencumbered Securities $1,041 Unencumbered Securities, $841 $9,415 $12,294 3/31/2023 4/21/2023 Same Day Available LiquiditySwift, prudent actions to maximize available liquidity and stabilize deposit flows: • Monetized securities and loan collateral by pledging to FHLB and Fed • Increased cash on balance sheet • Increased deposits in insured ICS program • Frequent communication with funding sources and counterparties • Equipped bankers with enhanced communication tools Available liquidity sources: • Cash • Secured funding (FHLB, BTFP, discount window) • FDIC insured wholesale and municipal deposits • Deposit campaigns • Securities and residential loan paydowns

 
11 We take limited interest rate risk Simulated percentage change in economic value of equity and net interest income compared to the base case as of 3/31/2023: • Modeling assumes a static balance sheet and parallel shocks of the indicated magnitude • Benchmark indices are floored at zero • Base case assumes the consensus forward curve

 
Investment Portfolio 12

 
13 High Quality, Short-Duration Securities Portfolio ($ in millions) ($ in thousands) Portfolio Composition Ratings Distribution • AOCI mark on AFS securities improved $100 million QoQ; No expected credit losses • AFS portfolio duration of 1.95; approximately 68% of the portfolio floating rate • HTM securities totaling $10 million with unrealized loss of $0.2 million US Government and agency 29% Private label RMBS and CMOs 26% Private label CMBS 26% Residential real estate lease- backed securities 6% CLO 11% State Municipal Obligations 1% Other 1% NR 1% Gov 29% AAA 60% AA 7% A 3% Portfolio Net Unrealized Gain(Loss) Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss Fair Value US Government and agency (4)$ 3,250$ (146)$ 2,780$ (128)$ 2,742$ Private label RMBS and CMOs (11) 2,149 (334) 2,531 (300) 2,525 Private label CMBS (1) 2,604 (121) 2,524 (98) 2,435 Residential real estate lease-backed securities 2 477 (32) 470 (20) 449 CLOs (1) 1,078 (30) 1,136 (20) 1,106 State and Municipal Obligations 17 222 (5) 117 (3) 104 Other 2 153 (6) 96 (5) 94 4$ 9,933$ (674)$ 9,654$ (574)$ 9,455$ December 31, 2021 December 31, 2022 March 31, 2023

 
14 Strong credit enhancement levels Private Label RMBS Private Label CMBS CLOs AAA 94% AA 1% A 5% AAA 85% AA 11% A 4% AAA 80% AA 17% A 3% Rating Min Max Avg AAA 3.0 99.8 17.6 2.3 AA 19.1 33.5 24.3 5.3 A 22.9 25.8 23.6 5.4 Wtd. Avg. 4.2 95.4 17.9 2.5 Subordination Wtd. Avg. Stress Scenario Loss Rating Min Max Avg AAA 30.0 98.1 44.7 6.4 AA 29.3 95.0 39.5 7.3 A 25.1 69.9 39.4 8.6 Wtd. Avg. 29.7 96.6 43.9 6.6 Subordination Wtd. Avg. Stress Scenario Loss Rating Min Max Avg AAA 41.4 60.2 46.5 10.4 AA 31.0 38.1 34.8 9.2 A 27.3 31.5 28.9 9.2 Wtd. Avg. 39.2 55.5 43.9 10.1 Subordination Wtd. Avg. Stress Scenario Loss High Quality, Short-Duration Securities Portfolio At March 31, 2023

 
Loans and the Allowance for Credit Losses 15

 
Conservatively Underwritten and Well-Diversified Loan Portfolio At March 31, 2023 ($ in millions) 16 Loan Portfolio Over Time (1) Includes lending subs and PPP. PPP totaled $782 million, $249 million, $3 million and $1 million at December 31, 2020, December 31, 2021, December 31, 2022, and March 31, 2023, respectively. $4,949 $5,661 $6,348 $8,368 $8,901 $8,790 $7,501 $7,493 $6,896 $5,702 $5,700 $5,672 $6,478 $6,718 $6,448 $6,735 $8,305 $8,480 $432 $768 $1,259 $1,092 $525 $525 $2,617 $2,515 $2,915 $1,868 $1,455 $1,426 $21,977 $23,155 $23,866 $23,765 $24,886 $24,893 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 Other(1) Mortgage Warehouse Lending C&I CRE Residential

 
Drivers of Change in the ACL – Current Quarter ($ in millions) 17 ACL 12/31/22 ACL 03/31/2023 Other Economic Forecast Net Charge- Offs Change in Qualitative Overlay % of Total Loans 0.59% 0.64% • Current market adjustment • Changes to forward path of economic forecast • Decreased qualitative overlay for components now captured in quantitative modeling Change in Specific Reserves New Loans, net of runoff • Includes impact of adoption of ASU 2022-02

 
Allocation of the ACL ($ in millions) 18 (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $36.9 million and $40.3 million or 0.15% and 0.16% of total loans and 0.10% and 0.11% of total assets at March 31, 2023 and December 31, 2022, respectively. (2) Annualized for the period ended March 31, 2023. Balance % of Loans Balance % of Loans Residential 11.7$ 0.13% 11.8$ 0.13% Commercial: Commercial real estate 24.8 0.43% 26.0 0.46% Commercial and industrial 97.2 1.10% 113.0 1.25% Pinnacle 0.2 0.02% 0.2 0.02% Franchise finance 11.7 4.63% 5.6 2.33% Equipment finance 2.3 0.82% 2.2 0.83% Total commercial 136.2 0.85% 147.0 0.91% Allowance for credit losses 147.9$ 0.59% 158.8$ 0.64% December 31, 2022 March 31, 2023 Asset Quality Ratios December 31, 2022 March 31, 2023 Non-performing loans to total loans (1) 0.42% 0.46% Non-performing assets to total assets (1) 0.29% 0.32% Allowance for credit losses to non-performing loans (1) 140.88% 139.01% Net charge-offs to average loans (2) 0.22% 0.08%

 
19 Granular, Diversified Commercial & Industrial Portfolio At March 31, 2023 (1) Includes $1.9 billion of owner-occupied real estate ($ in millions) Industry Balance(1) % of Portfolio Finance and Insurance 1,844$ 21.8% Manufacturing 729 8.6% Educational Services 710 8.4% Information 671 7.9% Wholesale Trade 634 7.5% Utilities 568 6.7% Real Estate and Rental and Leasing 496 5.8% Health Care and Social Assistance 478 5.6% Transportation and Warehousing 375 4.4% Construction 358 4.2% Retail Trade 313 3.7% Professional, Scientific, and Technical Services 277 3.3% Other Services (except Public Administration) 231 2.7% Public Administration 221 2.6% Arts, Entertainment, and Recreation 177 2.1% Administrative and Support and Waste Management 170 2.0% Accommodation and Food Services 160 1.9% Other 69 0.8% 8,481$ 100.0%

 
20 High Quality CRE Portfolio At March 31, 2023 ($ in millions) No non-performing CRE loans other than in the SBA portfolio at March 31, 2023 ($17 million in non-accrual guaranteed SBA loans) Property Type Wtd. Avg. DSCR Wtd. Avg. LTV Wtd. Avg. DSCR Wtd. Avg. LTV Office 1.79 65.1% 1.69 60.1% Warehouse/Industrial 2.08 51.2% 1.40 47.6% Multifamily 2.82 43.5% 1.57 47.3% Retail 2.01 59.2% 1.24 65.3% Hotel 2.63 50.0% 1.04 72.0% Other 2.03 45.8% 1.22 67.6% 2.13 55.7% 1.53 55.2% Florida NY Tri State Property Type Balance % of Total CRE FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Office 1,843$ 33% 58% 23% 19% 1.69 64.2% Warehouse/Industrial 1,218 21% 64% 15% 21% 2.00 52.0% Multifamily 934 16% 48% 52% - 2.20 45.4% Retail 853 15% 64% 26% 10% 1.76 61.6% Hotel 404 7% 86% 1% 13% 2.46 53.7% Construction and Land 325 6% 49% 49% 2% N/A N/A Other 95 2% 77% 7% 16% 1.81 48.3% 5,672$ 100% 60% 26% 14% 1.92 56.8%

 
21 High Quality CRE Portfolio ($ in millions) Manageable Maturity Risk: Just 8% of Total CRE portfolio are Fixed or Swapped and maturing in next 12 months Office Portfolio Characteristics: • 58% total exposure Florida, 9% Manhattan • Florida exposure over 90% suburban, approx 60% Class A or medical office • New York exposure approx 35 - 40% Manhattan, remainder Long Island, boroughs and surrounding areas; approx 40% Class A or medical • Rent rollover in next 12 months a little over 10% of the portfolio • De-minimis delinquent or non-performing loans ($300k 30 days delinquent) • 5 year cumulative net charge-offs of $2 million Property Type Maturing in the Next 12 Months % Maturing in the Next 12 Months Fixed Rate Floating Rate Swapped Fixed Rate to Borrower as a % of Total Portfolio Floating Rate Not Swapped Office 344$ 19% 122$ 74$ 11% 148$ Warehouse/Industrial 105 9% 46 - 4% 59 Multifamily 159 17% 79 - 8% 80 Retail 159 19% 114 8 14% 37 Hotel 28 7% 3 - 1% 25 Construction and Land 38 12% 2 - 1% 36 Other 12 13% - 12 13% - 845$ 15% 366$ 94$ 8% 385$

 
22 CRE Portfolio – Stress Testing Results At December 31, 2022 ($ in millions) • 12/31/2022 CRE portfolio losses modeled using the Moody's S4 recessionary scenario • Total expected losses of $97 million, or 1.7% of total CRE • Moody's S4 Recessionary Scenario: recession > 1 year with decline in real GDP over 4%; Unemployment ~ 9%; Inverted yield curve through 2023; CRE prices decline by 30% • Continue to be significantly above 6.5% "Well Capitalized" threshold if modeled S4 scenario losses were incurred across the entire loan portfolio. Estimated stressed CET1 at the bank of 11.9% and at the holding company of 10.5% at 12/31/22; implied 3/31/23 CET 1 of 12.0% at bank and 10.3% at holdco 2.28% 0.13% 1.35% 1.03% 5.31% 2.76% 0.95% 1.70% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Office Industrial Multifamily Retail Hotel Construction and Land Other Total Moody's S4 Scenario Expected Losses in S4 Scenario $42.8 $1.6 $12.7 $8.9 $21.6 $8.1 $0.9 $96.6

 
Asset Quality Metrics Non-performing Loans to Total Loans Non-performing Assets to Total Assets Net Charge-offs to Average Loans 23 0.88% 1.02% 0.87% 0.42% 0.46% 0.68% 0.80% 0.68% 0.26% 0.31% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 0.63% 0.71% 0.58% 0.29% 0.32% 0.49% 0.56% 0.45% 0.18% 0.22%0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 0.05% 0.26% 0.29% 0.22% 0.08% 0.00% 0.20% 0.40% 0.60% 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23

 
Non-Performing Loans by Portfolio Segment ($ in millions) 24 $19 $29 $29 $21 $23 $24 $60 $30 $65 $43 $58 $22 $42 $21 $14 $45 $33 $13 $6 $205 $244 $206 $105 $114 $16 $16 $10 $9 $6 $46 $51 $46 $40 $37 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 Residential and Other Consumer CRE C&I Equipment Franchise Guaranteed Portion of SBA Non-Guaranteed Portion of SBA

 
Criticized and Classified Loans ($ in millions) Commercial Real Estate (1) Commercial & Industrial (1) (1) Excludes SBA $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 25 $180 $39 $80 $91 $2 $20 Multifamily Hotel Retail Office Construction & Land SBA Criticized and Classified CRE by Property Type at March 31, 2023 Over $50mm of multi-family criticized/classified paid off or expected to pay off in April

 
Asset Quality – Delinquencies ($ in millions) Commercial (1) CRE Residential (2) (1) Includes lending subsidiaries, excludes PPP loans (2) Excludes government insured residential loans 26 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23

 
Residential Portfolio Overview At March 31, 2023 High quality residential portfolio consists primarily of high FICO, low LTV, prime jumbo mortgages with de- minimis charge-offs since inception as well as government insured loans 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. 27 Prior 20% 2019 4% 2020 13% 2021 44% 2022 17% 2023 2% 60% or less 35% 61% - 70% 26% 71% - 80% 38% More than 80% 1% <720 or NA 10% 720-759 16% >759 74% Residential Loan Product Type 30 Yr Fixed 31% 15 & 20 Year Fixed 13% 10/1 ARM 12% 5/1 & 7/1 ARM 24% Formerly Covered 1% Govt Insured 19%

 
Non-GAAP Financial Measures 28

 
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, 2023 (in thousands except share and per share data): Total stockholders’ equity (GAAP) Less: goodwill Tangible stockholders’ equity (non-GAAP) Common shares issued and outstanding Book value per common share (GAAP) Tangible book value per common share (non-GAAP) March 31, 2023 Total stockholders’ equity (GAAP) 2,481,394$ Less: goodwill 77,637 Tangible stockholders’ equity (non-GAAP) 2,403,757$ Common shares issued and outstanding 74,423,365 Book value per common share (GAAP) 33.34$ Tangible book value per common shar (n n-GAAP) 32.30$