# EDGAR Filing Document

**Accession Number:** 0001504008
**File Stem:** 0001504008-23-000004
**Filing Date:** 2023-1
**Character Count:** 61296
**Document Hash:** c23aee34fbf1704cf784d907ef1e4050
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001504008-23-000004.hdr.sgml**: 20230119

**ACCESSION NUMBER**: 0001504008-23-000004

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 40

**CONFORMED PERIOD OF REPORT**: 20230119

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230119

**DATE AS OF CHANGE**: 20230119

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BankUnited, Inc.
- **CENTRAL INDEX KEY:** 0001504008
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **IRS NUMBER:** 270162450
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35039
- **FILM NUMBER:** 23535896

**BUSINESS ADDRESS:**
- **STREET 1:** 14817 OAK LANE
- **CITY:** MIAMI LAKES
- **STATE:** FL
- **ZIP:** 33016
- **BUSINESS PHONE:** (305) 569-2000

**MAIL ADDRESS:**
- **STREET 1:** 14817 OAK LANE
- **CITY:** MIAMI LAKES
- **STATE:** FL
- **ZIP:** 33016

?xml version="1.0" ? bku-20230119

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**CURRENT REPORT**

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

Date of Report (Date of earliest event reported):January 19, 2023 **(January 19, 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** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33016** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

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

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

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

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

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

---

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

---

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

Emerging growth company ☐

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

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On January 19, 2023, BankUnited, Inc. (the "Company") reported its results for the quarter ended December 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&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d) Exhibits.

---

| | | |
|:---|:---|:---|
| **Exhibit<br>Number** | **Description** | **Description** |
| <u>[99.1](earningsdocex99120221231.htm)</u> | <u>[Press release dated](earningsdocex99120221231.htm)</u> | January 19, 2023 |
| <u>[99.2](exhibit99212312022.htm)</u> | <u>[Supplemental information relating to the press release dated](exhibit99212312022.htm)</u> | January 19, 2023 |

---

------

**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: | January 19, 2023 | BANKUNITED, INC. | BANKUNITED, INC. |
| | | /s/ Leslie N. Lunak | /s/ Leslie N. Lunak |
| | | Name: | Leslie N. Lunak |
| | | Title: | Chief Financial Officer |

---

------

**EXHIBIT INDEX**

---

| | | |
|:---|:---|:---|
| **Exhibit<br>Number** | **Description** | **Description** |
| <u>[99.1](earningsdocex99120221231.htm)</u> | <u>[Press release dated](earningsdocex99120221231.htm)</u> | January 19, 2023 |
| <u>[99.2](exhibit99212312022.htm)</u> | <u>[Supplemental information relating to the press release dated](exhibit99212312022.htm)</u> | January 19, 2023 |

---

## Exhibit 99.1

**Exhibit 99.1**

**<u>BANKUNITED, INC. REPORTS 2022 RESULTS</u>**

Miami Lakes, Fla. — January 19, 2023 — BankUnited, Inc. (the "Company") (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2022.

"We finished 2022 strong, with good growth, margin expansion and the launch of Atlanta and the Dallas branch. We're optimistic going into 2023." said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended December 31, 2022, the Company reported net income of $64.2 million, or $0.82 per diluted share, compared to $87.9 million, or $1.12 per diluted share for the immediately preceding quarter ended September 30, 2022 and $125.3 million, or $1.41 per diluted share, for the quarter ended December 31, 2021. For the year ended December 31, 2022, the Company reported net income of $285.0 million, or $3.54 per diluted share, compared to $415.0 million, or $4.52 per diluted share, for the year ended December 31, 2021.

**<u>Quarterly Highlights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• BankUnited was ranked #1 in comprehensive innovation, #2 in bank reputation among customers and #9 in bank reputation among non-customers in an annual survey by the American Banker and RepTrak, published in November 2022. The survey encompassed 41 large, regional and nontraditional banks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pre-tax, pre-provision net revenue ("PPNR") was $121.4 million for the quarter ended December 31, 2022, compared to $120.8 million for the immediately preceding quarter ended September 30, 2022 and $63.8 million for the quarter ended December 31, 2021. PPNR for the quarter ended December 31, 2021 was impacted by certain significant notable items, further discussed below in the section titled "Non-interest income and Non-interest expense."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans grew by $619 million for the quarter ended December 31, 2022. The core C&I and commercial real estate portfolio segments grew by a total of $722 million. For the year ended December 31, 2022, excluding the decline in PPP loans, total loans grew by 6% or $1.4 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total deposits grew by $160 million during the quarter ended December 31, 2022. Not unexpectedly in the current interest rate environment, non-interest bearing demand deposits declined by $756 million to 29% of total deposits, while interest bearing deposits grew by $916 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The net interest margin, calculated on a tax-equivalent basis, expanded to 2.81% for the quarter ended December 31, 2022, from 2.76% for the immediately preceding quarter and 2.44% for the quarter ended December 31, 2021. Net interest income increased by $7.2 million, compared to the immediately preceding quarter ended September 30, 2022 and by $37.1 million compared to the quarter ended December 31, 2021. Net interest income for the year ended December 31, 2022 grew by 15% compared to the prior year, while the net interest margin expanded by 30 basis points year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In response to the rising interest rate environment and tightening liquidity, the average cost of total deposits rose to 1.42% for the quarter ended December 31, 2022, from 0.78% for the immediately preceding quarter ended September 30, 2022 and 0.19% for the quarter ended December 31, 2021. The yield on average interest earning assets increased to 4.60% for the quarter ended December 31, 2022, from 3.80% for the immediately preceding quarter and 2.81% for the quarter ended December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the quarter ended December 31, 2022, the Company recorded a provision for credit losses of $39.6 million compared to provisions of $3.7 million and $0.2 million for the quarters ended September 30, 2022 and December 31, 2021, respectively. Despite the decline in non-performing loans, we built reserves during the quarter in light of a worsening baseline economic forecast and a heightened level of uncertainty regarding the trajectory of the economy. The provision for credit losses for the quarter ended December 31, 2022 was also impacted by loan growth and an increase in certain specific reserves. The ratio of the ACL to total loans increased to 0.59%, from 0.54% at September 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the quarter ended December 31, 2022, the Company repurchased approximately 1.9 million shares of its common stock for an aggregate purchase price of $64.7 million, at a weighted average price of $33.92 per share.

  

------

**<u>Loans</u>**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **December 31, 2021** | **December 31, 2021** |
| Residential and other consumer loans | $8900714 | 35.7% | $8853884 | 36.4% | $8368380 | 35.2% |
| Non-owner occupied commercial real estate | 5405597 | 21.7% | 5331232 | 22.1% | 5536348 | 23.3% |
| Construction and land | 294360 | 1.2% | 246202 | 1.0% | 165390 | 0.7% |
| Owner occupied commercial real estate | 1890813 | 7.6% | 1919074 | 7.9% | 1944658 | 8.2% |
| Commercial and industrial | 6414351 | 25.9% | 5786907 | 23.9% | 4790275 | 20.2% |
| PPP | 3370 | —% | 10191 | —% | 248505 | 1.0% |
| Pinnacle | 912122 | 3.7% | 932187 | 3.8% | 919641 | 3.9% |
| Bridge - franchise finance | 253774 | 1.0% | 254137 | 1.0% | 342124 | 1.4% |
| Bridge - equipment finance | 286147 | 1.1% | 310035 | 1.3% | 357599 | 1.5% |
| Mortgage warehouse lending ("MWL") | 524740 | 2.1% | 622883 | 2.6% | 1092133 | 4.6% |
|  | $24885988 | 100.0% | $24266732 | 100.0% | $23765053 | 100.0% |

---

Total loans grew by $619 million for the quarter ended December 31, 2022. In the aggregate, the core C&I and commercial real estate portfolio segments grew by $722 million. The commercial and industrial segment, including owner-occupied commercial real estate, grew by $599 million for the quarter, while commercial real estate loans grew by $123 million. As expected, the remaining commercial segments declined during the quarter while the residential portfolio grew modestly.

**<u>Asset Quality and the Allowance for Credit Losses ("ACL")</u>**

Non-performing loans totaled $105.0 million or 0.42% of total loans at December 31, 2022, down from $156.4 million or 0.64% of total loans at September 30, 2022 and $205.9 million or 0.87% of total loans at December 31, 2021. Non-performing loans included $40.3 million, $41.8 million and $46.1 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.16%, 0.17% and 0.19% of total loans at December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

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

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2022** | **September 30, 2022** | **December 31, 2021** |
| Special mention | $51433 | $26939 | $148593 |
| Substandard - accruing | 605965 | 662716 | 1136378 |
| Substandard - non-accruing | 75125 | 104994 | 129579 |
| Doubtful | 7990 | 32093 | 47754 |
| Total | $740513 | $826742 | $1462304 |

---

The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the periods ended December 31, 2022, September 30, 2022, and December 31, 2021 (dollars in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **ACL** | **ACL to Total Loans** | **ACL to Non-Performing Loans** | **Net Charge-offs to Average Loans** <sup>(1)</sup> |
| December 31, 2021 | $126457 | 0.53% | 61.41% | 0.29% |
| September 30, 2022 | $130671 | 0.54% | 83.54% | 0.16% |
| December 31, 2022 | $147946 | 0.59% | 140.88% | 0.22% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Annualized for the nine months ended September 30, 2022.

The ACL at December 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. For the quarter ended December 31, 2022, the Company recorded a provision for credit losses of $39.6 million, including $40.4 million related to funded loans. The most significant factor impacting the provision for credit losses for the quarter ended December 31, 2022 was the economic forecast and uncertainty about the trajectory of the economy, which impacted both the quantitative and qualitative portions of the ACL. New loan production and increases in certain specific reserves also impacted the provision for the quarter.

  

------

For the year ended December 31, 2022 the provision for credit losses totaled $75.2 million, compared to a recovery of the provision of $(67.1) million for the year ended December 31, 2021. The provision for 2022 reflected consideration of emerging economic uncertainty and increasing probability of a recession, while the recovery for 2021 reflected the release of reserves built at the time of onset of the COVID-19 pandemic.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Beginning balance | $130671 | $159615 | $126457 | $257323 |
| &nbsp;&nbsp;&nbsp;Provision (recovery) | 40408 | 1067 | 73814 | (64456) |
| &nbsp;&nbsp;&nbsp;Net charge-offs | (23133) | (34225) | (52325) | (66410) |
| Ending balance | $147946 | $126457 | $147946 | $126457 |

---

**<u>Net Interest Income</u>**

Net interest income for the quarter ended December 31, 2022 was $243.1 million, compared to $235.8 million for the immediately preceding quarter ended September 30, 2022 and $206.0 million for the quarter ended December 31, 2021. Interest income increased by $75.5 million for the quarter ended December 31, 2022, compared to the immediately preceding quarter while interest expense increased by $68.2 million.

The Company's net interest margin, calculated on a tax-equivalent basis, increased by 0.05% to 2.81% for the quarter ended December 31, 2022, from 2.76% for the immediately preceding quarter ended September 30, 2022. Factors impacting the net interest margin for the quarter ended December 31, 2022 included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The tax-equivalent yield on investment securities increased to 4.33% for the quarter ended December 31, 2022, from 3.12% for the quarter ended September 30, 2022. This increase resulted from the reset of coupon rates on variable rate securities and to a lesser extent, purchases of higher yielding securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The tax-equivalent yield on loans increased to 4.72% for the quarter ended December 31, 2022, from 4.11% for the quarter ended September 30, 2022. The resetting of variable rate loans to higher coupon rates and origination of new loans at higher rates contributed to the increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The average rate paid on interest bearing deposits increased to 2.06% for the quarter ended December 31, 2022, from 1.14% for the quarter ended September 30, 2022, in response to the rising interest rate environment and tightening liquidity conditions. Time deposits grew as a percentage of interest bearing deposits as we deployed a strategy to extend the term of interest bearing deposits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The average rate paid on FHLB advances increased to 3.44% for the quarter ended December 31, 2022, from 2.25% for the quarter ended September 30, 2022, primarily in response to the rising interest rate environment.

**<u>Non-interest income and Non-interest expense</u>**

Non-interest income totaled $26.8 million for the quarter ended December 31, 2022, compared to $23.1 million for the quarter ended September 30, 2022 and $45.6 million for the quarter ended December 31, 2021. During the quarter ended December 31, 2021, the Company sold a portfolio of single-family residential loans for a gain of $18.2 million.

Non-interest income totaled $77.6 million for the year ended December 31, 2022, compared to $134.2 million for the year ended December 31, 2021. The year-over-year decline is primarily attributable to (i) the gain on sale of residential loans in the fourth quarter of 2021 discussed above, (ii) a $19.7 million decline in the fair value of certain preferred stock investments included in net loss on investment securities for the year ended December 31, 2022, and (iii) a decline in "other" non-interest income related primarily to lower BOLI revenue.

Non-interest expense totaled $148.5 million for the quarter ended December 31, 2022, compared to $138.1 million for the immediately preceding quarter ended September 30, 2022 and $187.9 million for the quarter ended December 31, 2021. Non-interest expense totaled $540.3 million and $547.6 million for the years ended December 31, 2022 and 2021, respectively. Non-interest expense for the quarter and year ended December 31, 2021 included a loss of $44.8 million on discontinuance of cash flow hedges. Quarter-over-quarter and 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.

  

------

**<u>Provision (benefit) for income taxes</u>**

The effective income tax rate was 21.5% and 24.0% for the quarter and year ended December 31, 2022, compared to (97.2)% and 7.7% for the quarter and year ended December 31, 2021. The effective income tax rate for both the quarter and year ended December 31, 2021 was positively impacted by $69.1 million in discrete tax benefits recognized in the fourth quarter of 2021.

**<u>Earnings Conference Call and Presentation</u>**

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, January 19, 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 <u>www.bankunited.com</u> 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 <u>https://ir.bankunited.com</u>. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at <u>https://register.vevent.com/register/BI9a423dcb6b32467695ab75bc2d26717e</u>. For those unable to join the live event, an archived webcast will be available in the Investor Relations page at <u>https://ir.bankunited.com</u> approximately two hours following the live webcast.

**<u>About BankUnited, Inc.</u>**

BankUnited, Inc., with total assets of $37.0 billion at December 31, 2022, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 54 banking centers in 12 Florida counties, 4 banking centers in the New York metropolitan area, and 1 banking center located in Dallas, Texas.

**<u>Forward-Looking Statements</u>**

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.

  

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**BANKUNITED, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS - UNAUDITED**

**(In thousands, except share and per share data)** 

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | **December 31,<br>2021** |
| **ASSETS** |  |  |
| Cash and due from banks: |  |  |
| &nbsp;&nbsp;&nbsp;Non-interest bearing | $16068 | $19143 |
| &nbsp;&nbsp;&nbsp;Interest bearing | 556579 | 295714 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 572647 | 314857 |
| Investment securities (including securities recorded at fair value of $9,745,327 and $10,054,198) | 9755327 | 10064198 |
| Non-marketable equity securities | 294172 | 135859 |
| Loans | 24885988 | 23765053 |
| Allowance for credit losses | (147946) | (126457) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, net | 24738042 | 23638596 |
| Bank owned life insurance | 308212 | 309477 |
| Operating lease equipment, net | 539799 | 640726 |
| Goodwill | 77637 | 77637 |
| Other assets | 740876 | 634046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $37026712 | $35815396 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Demand deposits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-interest bearing | $8037848 | $8975621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest bearing | 2142067 | 3709493 |
| &nbsp;&nbsp;&nbsp;Savings and money market | 13061341 | 13368745 |
| &nbsp;&nbsp;&nbsp;Time | 4268078 | 3384243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 27509334 | 29438102 |
| &nbsp;&nbsp;&nbsp;Federal funds purchased | 190000 | 199000 |
| &nbsp;&nbsp;&nbsp;FHLB advances | 5420000 | 1905000 |
| &nbsp;&nbsp;&nbsp;Notes and other borrowings | 720923 | 721416 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 750474 | 514117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 34590731 | 32777635 |
| **Commitments and contingencies** |  |  |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;Common stock, par value $0.01 per share, 400,000,000 shares authorized; 75,674,587 and 85,647,986 shares issued and outstanding | 757 | 856 |
| &nbsp;&nbsp;&nbsp;Paid-in capital | 321729 | 707503 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 2551400 | 2345342 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (437905) | (15940) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 2435981 | 3037761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $37026712 | $35815396 |

---

  

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**BANKUNITED, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED**

**(In thousands, except per share data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Years Ended** | **Years Ended** |
| | **December 31,** | **September 30,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2022** | **2021** | **2022** | **2021** |
| **Interest income:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans | $288973 | $244884 | $198275 | $934642 | $800819 |
| &nbsp;&nbsp;&nbsp;Investment securities | 105172 | 77109 | 38201 | 280100 | 152619 |
| &nbsp;&nbsp;&nbsp;Other | 7345 | 4031 | 1397 | 15709 | 6010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 401490 | 326024 | 237873 | 1230451 | 959448 |
| **Interest expense:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 94403 | 53206 | 13631 | 179972 | 67596 |
| &nbsp;&nbsp;&nbsp;Borrowings | 64021 | 36982 | 18227 | 137519 | 96164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 158424 | 90188 | 31858 | 317491 | 163760 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income before provision for credit losses | 243066 | 235836 | 206015 | 912960 | 795688 |
| &nbsp;&nbsp;&nbsp;Provision for (recovery of) credit losses | 39608 | 3720 | 246 | 75154 | (67119) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | 203458 | 232116 | 205769 | 837806 | 862807 |
| **Non-interest income:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposit service charges and fees | 5482 | 6064 | 5815 | 23402 | 21685 |
| &nbsp;&nbsp;&nbsp;Gain (loss) on sale of loans, net | (335) | (613) | 19003 | (2570) | 24394 |
| &nbsp;&nbsp;&nbsp;Gain (loss) on investment securities, net | 320 | 135 | 590 | (15805) | 6446 |
| &nbsp;&nbsp;&nbsp;Lease financing | 14153 | 13180 | 14041 | 54111 | 53263 |
| &nbsp;&nbsp;&nbsp;Other non-interest income | 7193 | 4306 | 6173 | 18498 | 28365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | 26813 | 23072 | 45622 | 77636 | 134153 |
| **Non-interest expense:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Employee compensation and benefits | 69902 | 66097 | 70561 | 265548 | 243532 |
| &nbsp;&nbsp;&nbsp;Occupancy and equipment | 10770 | 11719 | 12817 | 45400 | 47944 |
| &nbsp;&nbsp;&nbsp;Deposit insurance expense | 6205 | 4398 | 3471 | 17999 | 18695 |
| &nbsp;&nbsp;&nbsp;Professional fees | 3028 | 3184 | 8023 | 11730 | 14386 |
| &nbsp;&nbsp;&nbsp;Technology | 22388 | 19813 | 18221 | 77103 | 67500 |
| &nbsp;&nbsp;&nbsp;Discontinuance of cash flow hedges |  |  | 44833 |  | 44833 |
| &nbsp;&nbsp;&nbsp;Depreciation and impairment of operating lease equipment | 12547 | 12646 | 15769 | 50388 | 53764 |
| &nbsp;&nbsp;&nbsp;Other non-interest expense | 23639 | 20248 | 14165 | 72142 | 56921 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 148479 | 138105 | 187860 | 540310 | 547575 |
| Income before income taxes | 81792 | 117083 | 63531 | 375132 | 449385 |
| Provision (benefit) for income taxes | 17585 | 29233 | (61724) | 90161 | 34401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $64207 | $87850 | $125255 | $284971 | $414984 |
| Earnings per common share, basic | $0.83 | $1.13 | $1.42 | $3.55 | $4.52 |
| Earnings per common share, diluted | $0.82 | $1.12 | $1.41 | $3.54 | $4.52 |

---

  

------

**BANKUNITED, INC. AND SUBSIDIARIES**

**AVERAGE BALANCES AND YIELDS**

**(Dollars in thousands)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended September 30, 2022** | **Three Months Ended September 30, 2022** | **Three Months Ended September 30, 2022** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
| | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended September 30, 2022** | **Three Months Ended September 30, 2022** | **Three Months Ended September 30, 2022** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
| | **Average<br>Balance** | **Interest** <sup>(1)</sup> | **Yield/**<br>**Rate** <sup>(1)(2)</sup> | **Average<br>Balance** | **Interest** <sup>(1)</sup> | **Yield/**<br>**Rate** <sup>(1)(2)</sup> | **Average<br>Balance** | **Interest** <sup>(1)</sup> | **Yield/**<br>**Rate** <sup>(1)(2)</sup> |
| **Assets:** | | | | | | | | | |
| **Interest earning assets:** | | | | | | | | | |
| Loans | $24624062 | $292272 | 4.72% | $24053742 | $248168 | 4.11% | $22919535 | $201345 | 3.50% |
| Investment securities <sup>(3)</sup> | 9788969 | 106034 | 4.33% | 9981486 | 77840 | 3.12% | 10113026 | 38889 | 1.54% |
| Other interest earning assets | 710315 | 7345 | 4.10% | 596879 | 4031 | 2.68% | 1184056 | 1397 | 0.47% |
| &nbsp;&nbsp;&nbsp;Total interest earning assets | 35123346 | 405651 | 4.60% | 34632107 | 330039 | 3.80% | 34216617 | 241631 | 2.81% |
| Allowance for credit losses | (137300) |  |  | (133828) |  |  | (149319) |  |  |
| Non-interest earning assets | 1837156 |  |  | 1703371 |  |  | 1767850 |  |  |
| &nbsp;&nbsp;&nbsp;Total assets | $36823202 |  |  | $36201650 |  |  | $35835148 |  |  |
| **Liabilities and Stockholders' Equity:** |  |  |  |  |  |  |  |  |  |
| **Interest bearing liabilities:** |  |  |  |  |  |  |  |  |  |
| Interest bearing demand deposits | $2183854 | $6704 | 1.22% | $2306906 | $4104 | 0.71% | $3058355 | $1481 | 0.19% |
| Savings and money market deposits | 12054892 | 68001 | 2.24% | 13001566 | 39838 | 1.22% | 13460084 | 9619 | 0.28% |
| Time deposits | 3960111 | 19698 | 1.97% | 3255869 | 9264 | 1.13% | 3399302 | 2531 | 0.30% |
| &nbsp;&nbsp;&nbsp;Total interest bearing deposits | 18198857 | 94403 | 2.06% | 18564341 | 53206 | 1.14% | 19917741 | 13631 | 0.27% |
| Federal funds purchased | 175637 | 1677 | 3.74% | 153905 | 833 | 2.12% | 56793 | 13 | 0.09% |
| FHLB advances | 6125435 | 53084 | 3.44% | 4739457 | 26890 | 2.25% | 1909450 | 8957 | 1.86% |
| Notes and other borrowings | 721044 | 9260 | 5.14% | 721164 | 9259 | 5.14% | 721525 | 9257 | 5.13% |
| &nbsp;&nbsp;&nbsp;Total interest bearing liabilities | 25220973 | 158424 | 2.49% | 24178867 | 90188 | 1.48% | 22605509 | 31858 | 0.56% |
| Non-interest bearing demand deposits | 8237885 |  |  | 8749794 |  |  | 9330805 |  |  |
| Other non-interest bearing liabilities | 879207 |  |  | 697440 |  |  | 785254 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities | 34338065 |  |  | 33626101 |  |  | 32721568 |  |  |
| Stockholders' equity | 2485137 |  |  | 2575549 |  |  | 3113580 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $36823202 |  |  | $36201650 |  |  | $35835148 |  |  |
| Net interest income |  | $247227 |  |  | $239851 |  |  | $209773 |  |
| Interest rate spread |  |  | 2.11% |  |  | 2.32% |  |  | 2.25% |
| Net interest margin |  |  | 2.81% |  |  | 2.76% |  |  | 2.44% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;On a tax-equivalent basis where applicable

(2)&nbsp;&nbsp;&nbsp;&nbsp;Annualized

(3)&nbsp;&nbsp;&nbsp;&nbsp;At fair value except for securities held to maturity

  

------

**BANKUNITED, INC. AND SUBSIDIARIES**

**AVERAGE BALANCES AND YIELDS**

**(Dollars in thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
| | **Average<br>Balance** | **Interest** <sup>(1)</sup> | **Yield/**<br>**Rate** <sup>(1)</sup> | **Average<br>Balance** | **Interest** <sup>(1)</sup> | **Yield/**<br>**Rate** <sup>(1)</sup> |
| **Assets:** |  |  |  |  |  |  |
| **Interest earning assets:** |  |  |  |  |  |  |
| Loans | $23937857 | $947386 | 3.96% | $23083973 | $814101 | 3.53% |
| Investment securities <sup>(2)</sup> | 10081701 | 283081 | 2.81% | 9873178 | 155353 | 1.57% |
| Other interest earning assets | 675068 | 15709 | 2.33% | 1093869 | 6010 | 0.55% |
| &nbsp;&nbsp;&nbsp;Total interest earning assets | 34694626 | 1246176 | 3.59% | 34051020 | 975464 | 2.86% |
| Allowance for credit losses | (132033) |  |  | (197212) |  |  |
| Non-interest earning assets | 1721570 |  |  | 1770685 |  |  |
| &nbsp;&nbsp;&nbsp;Total assets | $36284163 |  |  | $35624493 |  |  |
| **Liabilities and Stockholders' Equity:** |  |  |  |  |  |  |
| **Interest bearing liabilities:** |  |  |  |  |  |  |
| Interest bearing demand deposits | $2538906 | 13919 | 0.55% | $3027649 | 8550 | 0.28% |
| Savings and money market deposits | 12874240 | 130705 | 1.02% | 13339651 | 43082 | 0.32% |
| Time deposits | 3338671 | 35348 | 1.06% | 3490082 | 15964 | 0.46% |
| &nbsp;&nbsp;&nbsp;Total interest bearing deposits | 18751817 | 179972 | 0.96% | 19857382 | 67596 | 0.34% |
| Federal funds purchased | 157979 | 2723 | 1.72% | 33945 | 30 | 0.09% |
| FHLB advances | 4383507 | 97763 | 2.23% | 2622723 | 59116 | 2.25% |
| Notes and other borrowings | 721223 | 37033 | 5.13% | 721803 | 37018 | 5.13% |
| &nbsp;&nbsp;&nbsp;Total interest bearing liabilities | 24014526 | 317491 | 1.32% | 23235853 | 163760 | 0.70% |
| Non-interest bearing demand deposits | 8861111 |  |  | 8480964 |  |  |
| Other non-interest bearing liabilities | 708473 |  |  | 784031 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities | 33584110 |  |  | 32500848 |  |  |
| Stockholders' equity | 2700053 |  |  | 3123645 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $36284163 |  |  | $35624493 |  |  |
| Net interest income |  | $928685 |  |  | $811704 |  |
| Interest rate spread |  |  | 2.27% |  |  | 2.16% |
| Net interest margin |  |  | 2.68% |  |  | 2.38% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;On a tax-equivalent basis where applicable

(2)&nbsp;&nbsp;&nbsp;&nbsp;At fair value except for securities held to maturity

  

------

**BANKUNITED, INC. AND SUBSIDIARIES**

**EARNINGS PER COMMON SHARE**

**(In thousands except share and per share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **c** | **2022** | **2021** | **2022** | **2021** |
| **Basic earnings per common share:** |  |  |  |  |
| **Numerator:** |  |  |  |  |
| Net income | $64207 | $125255 | $284971 | $414984 |
| Distributed and undistributed earnings allocated to participating securities | (1519) | (2059) | (5075) | (5991) |
| &nbsp;&nbsp;&nbsp;Income allocated to common stockholders for basic earnings per common share | $62688 | $123196 | $279896 | $408993 |
| **Denominator:** |  |  |  |  |
| Weighted average common shares outstanding | 77043587 | 88123835 | 80032356 | 91612243 |
| Less average unvested stock awards | (1207275) | (1193180) | (1224568) | (1212055) |
| &nbsp;&nbsp;&nbsp;Weighted average shares for basic earnings per common share | 75836312 | 86930655 | 78807788 | 90400188 |
| **Basic earnings per common share** | $0.83 | $1.42 | $3.55 | $4.52 |
| **Diluted earnings per common share:** |  |  |  |  |
| **Numerator:** |  |  |  |  |
| Income allocated to common stockholders for basic earnings per common share | $62688 | $123196 | $279896 | $408993 |
| Adjustment for earnings reallocated from participating securities | (184) | (234) | (626) | (585) |
| &nbsp;&nbsp;&nbsp;Income used in calculating diluted earnings per common share | $62504 | $122962 | $279270 | $408408 |
| **Denominator:** |  |  |  |  |
| Weighted average shares for basic earnings per common share | 75836312 | 86930655 | 78807788 | 90400188 |
| &nbsp;&nbsp;&nbsp;Dilutive effect of certain share-based awards | 127 |  | 94 | 134 |
| &nbsp;&nbsp;Weighted average shares for diluted earnings per common share | 75836439 | 86930655 | 78807882 | 90400322 |
| **Diluted earnings per common share** | $0.82 | $1.41 | $3.54 | $4.52 |

---

  

------

**BANKUNITED, INC. AND SUBSIDIARIES**

**SELECTED RATIOS**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Financial ratios** <sup>(4)</sup> |  |  |  |  |
| Return on average assets | 0.69% | 1.39% | 0.79% | 1.16% |
| Return on average stockholders' equity | 10.3% | 16.0% | 10.6% | 13.3% |
| Net interest margin <sup>(3)</sup> | 2.81% | 2.44% | 2.68% | 2.38% |

---

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| **Asset quality ratios** | | |
| Non-performing loans to total loans <sup>(1)(5)</sup> | 0.42% | 0.87% |
| Non-performing assets to total assets <sup>(2)(5)</sup> | 0.29% | 0.58% |
| Allowance for credit losses to total loans | 0.59% | 0.53% |
| Allowance for credit losses to non-performing loans <sup>(1)(5)</sup> | 140.88% | 61.41% |
| Net charge-offs to average loans | 0.22% | 0.29% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;&nbsp;&nbsp;&nbsp;Non-performing assets include non-performing loans, OREO and other repossessed assets.

(3)&nbsp;&nbsp;&nbsp;&nbsp;On a tax-equivalent basis.

(4) Annualized for the three month periods.

(5)&nbsp;&nbsp;&nbsp;&nbsp;Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $40.3 million or 0.16% of total loans and 0.11% of total assets at December 31, 2022 and $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **Required to be Considered Well Capitalized** |
| | **BankUnited, Inc.** | **BankUnited, N.A.** | **BankUnited, Inc.** | **BankUnited, N.A.** | **Required to be Considered Well Capitalized** |
| **Capital ratios** | | | | | |
| Tier 1 leverage | 7.5% | 8.4% | 8.4% | 9.6% | 5.0% |
| Common Equity Tier 1 ("CET1") risk-based capital | 11.0% | 12.4% | 12.6% | 14.5% | 6.5% |
| Total risk-based capital | 12.7% | 12.9% | 14.3% | 14.9% | 10.0% |

---

  

------

**<u>Non-GAAP Financial Measures</u>**

PPNR is a non-GAAP financial measure. Management believes this measure is relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses and the ability of the Company to generate earnings sufficient to cover estimated credit losses, particularly in view of recent volatility of the provision for credit losses. This measure also provides a meaningful basis for comparison to other financial institutions since it is commonly employed and is a measure frequently cited by investors and analysts. The following table reconciles the non-GAAP financial measure of PPNR to the comparable GAAP financial measurement of income before income taxes at the dates indicated (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2022** | **September 30, 2022** | **December 31, 2021** |
| Income before income taxes (GAAP) | $81792 | $117083 | $63531 |
| Plus: provision for credit losses | 39608 | 3720 | 246 |
| PPNR (non-GAAP) | $121400 | $120803 | $63777 |

---

## Exhibit 99.2

![](exhibit99212312022001.jpg)

January 19, 2023 Q4 2022 – Supplemental Information Exhibit 99.2

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![](exhibit99212312022002.jpg)

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

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![](exhibit99212312022003.jpg)

Quarterly Highlights

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![](exhibit99212312022004.jpg)

Quarterly Snapshot 4 Operating results Loans and Deposits Asset Quality Capital • Net income for the quarter of $64.2 million and EPS of $0.82 • PPNR of $121.4 million for Q4, compared to $120.8 million in Q3 and $63.8 million in Q4'21(1) • Provision for credit losses of $39.6 million for Q4 - reserve build due to worsening economic forecast and increased likelihood of recession • NIM expanded by 5bps to 2.81% • Loan growth of $619 million • Core C&I and CRE segments grew $722 million • Total deposits increased by $160 million • Average cost of total deposits 1.42% for the quarter, compared to 0.78% in Q3 • NPA ratio of 0.42% at December 31; guaranteed portion of SBA loans included in NPAs was 0.11% of total assets • Net charge-off rate of 0.22% for the year • Criticized/classified assets continued to decline • Total share repurchases of $65 million in Q4; $75 million remaining in current authorization • CET1 ratios of 11.0% at the holding company and 12.4% at the bank at December 31, 2022 • Book value per share and tangible book value per share were $32.19 and $31.16, respectively at December 31(2) (1) PPNR is a non-GAAP financial measure. See section entitled "Non-GAAP Financial Measures" on page 24. (2) Tangible book value per share is a non-GAAP financial measure. See section entitle "Non-GAAP Financial Measures" on page 25.

------

![](exhibit99212312022005.jpg)

Highlights from Fourth Quarter Earnings 5 (1) Includes guaranteed portion of non-accrual SBA loans. (2) Annualized for the period ended September 30, 2022. (3) PPNR is a non-GAAP financial measure. See section entitled "Non-GAAP Financial Measures" on page 25. Key Highlights Reserve build due primarily to economic forecast Q4 2021 includes $18 million gain on sale of residential loans Q4 2021 includes $45 million loss on discontinuance of hedges Q4 2021 includes $69 million discrete income tax benefit $722 million growth in core CRE and C&I segments Continued margin expansion in rising rate environment Change From ($ in millions, except per share data) Q4 22 Q3 22 Q4 21 Q3 22 Q4 21 Net Interest Income $243 $236 $206 $7 $37 Provision for Credit Losses $40 $4 $0.2 $36 $39.8 Total Non-interest Income $27 $23 $46 $4 ($19) Total Non-interest Expense $148 $138 $188 $10 ($40) Net Income $64 $88 $125 ($24) ($61) EPS $0.82 $1.12 $1.41 ($0.30) ($0.59) Pre-Provision, Pre-Tax Net Revenue (PPNR)(3) $121.4 $120.8 $63.8 $0.6 $57.6 Period-end Loans $24,886 $24,267 $23,765 $619 $1,121 Period-end Non-interest DDA $8,038 $8,794 $8,976 ($756) ($938) Period-end Deposits $27,509 $27,349 $29,438 $160 ($1,929) CET1 11.0% 11.3% 12.6% (0.3%) (1.6%) Total Capital 12.7% 13.0% 14.3% (0.3%) (1.6%) Yield on Securities 4.33% 3.12% 1.54% 1.21% 2.79% Yield on Loans 4.72% 4.11% 3.50% 0.61% 1.22% Cost of Deposits 1.42% 0.78% 0.19% 0.64% 1.23% Net Interest Margin 2.81% 2.76% 2.44% 0.05% 0.37% Non-performing Assets to Total Assets(1) 0.29% 0.43% 0.58% (0.14%) (0.29%) Allowance for Credit Losses to Total Loans 0.59% 0.54% 0.53% 0.05% 0.06% Net Charge-offs to Average Loans(2) 0.22% 0.16% 0.29% 0.06% (0.07%)

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![](exhibit99212312022006.jpg)

Continued Strategic Focus - Transforming Deposit Base ($ in millions) 6 2022 presented a challenging environment for deposit growth Quarterly Cost of Deposits 0.94% 1.52% 1.48% 0.43% 0.19% 1.42% Non-interest bearing as % of Total Deposits 14.0% 15.4% 17.6% 25.5% 30.5% 29.2% Spot Average Annual Percentage Yield ("APY") At December 31, 2019 At December 31, 2020 At December 31, 2021 At December 31, 2022 Target Federal Funds Rate Upper Limit 1.75% 0.25% 0.25% 4.50% Total non-maturity deposits 1.11% 0.29% 0.14% 1.83% Total interest-bearing deposits 1.71% 0.48% 0.23% 2.66% Total deposits 1.42% 0.36% 0.16% 1.92% $6,335 $6,820 $7,347 $4,807 $3,384 $4,268 $10,715 $11,262 $10,622 $12,660 $13,369 $13,061 $1,758 $1,771 $2,131 $3,020 $3,709 $2,142 $3,071 $3,621 $4,295 $7,009 $8,976 $8,038$21,879 $23,474 $24,395 $27,496 $29,438 $27,509 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 Non-interest Demand Interest Demand Money Market / Savings Time

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![](exhibit99212312022007.jpg)

Prudently Underwritten and Well-Diversified Loan Portfolio At December 31, 2022 ($ in millions) 7 Loan Portfolio Over Time (1) Includes lending subs and PPP. PPP totaled $782 million, $249 million, $10 million, and $3 million at December 31, 2020, December 31, 2021, September 30, 2022 and December 31, 2022, respectively.

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![](exhibit99212312022008.jpg)

Allowance for Credit Losses

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![](exhibit99212312022009.jpg)

Drivers of Change in the ACL – Current Quarter 9 ACL 9/30/22 ACL 12/31/22 Assumption Changes Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 0.54% 0.59% • Portfolio seasoning • Changes in borrower financial condition • Risk rating migration • Current market adjustment • Changes to forward path of economic forecast • Increased qualitative overlay related to economic factors Change in Specific Reserves • Substantially all related to one loan Portfolio Changes • Primarily changes in prepayment speeds New Loans, net of runoff

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![](exhibit99212312022010.jpg)

Allocation of the ACL 10 ($ in millions) (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $40.3 million, $41.8 million, and $46.1 million or 0.16%, 0.17%, and 0.19% of total loans and 0.11%, 0.11%, and 0.13% of total assets at December 31, 2022, September 30, 2022, and December 31, 2021, respectively. (2) Annualized for the period ended September 30, 2022. Asset Quality Ratios December 31, 2021 September 30, 2022 December 31, 2022 Non-performing loans to total loans (1) 0.87% 0.64% 0.42% Non-performing assets to total assets (1) 0.58% 0.43% 0.29% Allowance for credit losses to non-performing loans (1) 61.41% 83.54% 140.88% Net charge-offs to average loans (2) 0.29% 0.16% 0.22% Balance % of Loans Balance % of Loans Balance % of Loans Residential and other consumer 9.2$0.11% 11.4$0.13% 11.7$0.13% Commercial: Commercial real estate 28.8 0.51% 24.4 0.44% 24.8 0.43% Commercial and industrial 68.0 0.84% 84.6 1.01% 97.2 1.10% Pinnacle 0.2 0.02% 0.1 0.01% 0.2 0.02% Franchise finance 16.7 4.90% 8.2 3.22% 11.7 4.63% Equipment finance 3.6 1.00% 2.0 0.64% 2.3 0.82% Total commercial 117.3 0.76% 119.3 0.77% 136.2 0.85% Allowance for credit losses 126.5$0.53% 130.7$0.54% 147.9$0.59% December 31, 2021 September 30, 2022 December 31, 2022

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![](exhibit99212312022011.jpg)

Loan Portfolio and Credit

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![](exhibit99212312022012.jpg)

12 Granular, Diversified Commercial & Industrial Portfolio At December 31, 2022 (1) Includes $1.9 billion of owner-occupied real estate (2) Excludes PPP loans ($ in millions) Industry Balance(1)(2) % of Portfolio Finance and Insurance 1,792$21.6% Educational Services 751 9.0% Manufacturing 647 7.8% Wholesale Trade 645 7.8% Information 583 7.0% Utilities 538 6.5% Real Estate and Rental and Leasing 509 6.1% Health Care and Social Assistance 484 5.8% Transportation and Warehousing 402 4.8% Construction 337 4.1% Retail Trade 330 4.0% Professional, Scientific, and Technical Services 299 3.6% Other Services (except Public Administration) 235 2.8% Public Administration 221 2.7% Administrative and Support and Waste Management 173 2.1% Accommodation and Food Services 155 1.9% Arts, Entertainment, and Recreation 152 1.8% Other 52 0.6% 8,305$100.0%

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![](exhibit99212312022013.jpg)

13 Commercial Real Estate by Property Type At December 31, 2022 ($ in millions) Property Type Balance FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Office 1,875$59% 22% 19% 1.75 64.3% Warehouse/Industrial 1,217 62% 18% 20% 2.05 52.6% Multifamily 945 48% 52% - 2.13 45.9% Retail 870 64% 27% 9% 1.88 61.7% Hotel 407 86% 6% 8% 2.13 55.1% Construction and Land 294 49% 49% 2% N/A N/A Other 92 75% 9% 16% 2.45 47.7% 5,700$61% 26% 13% 1.95 57.0%

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![](exhibit99212312022014.jpg)

Asset Quality Metrics - Continued Positive Trends Non-performing Loans to Total Loans Non-performing Assets to Total Assets Net Charge-offs to Average Loans 14 0.88% 1.02% 0.87% 0.42% 0.68% 0.80% 0.68% 0.26% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 12/31/21 12/31/22 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 0.63% 0.71% 0.58% 0.29% 0.49% 0.56% 0.45% 0.18%0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 12/31/21 12/31/22 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 0.05% 0.26% 0.29% 0.22% 0.00% 0.20% 0.40% 0.60% 12/31/19 12/31/20 12/31/21 12/31/22

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![](exhibit99212312022015.jpg)

Non-Performing Loans by Portfolio Segment ($ in millions) (1) Includes the guaranteed portion of non-accrual SBA loans totaling $40.3 million, $46.1 million, $51.3 million, and $45.7 million at December 31, 2022, 2021, 2020 and 2019, respectively. 15 $19 $29 $29 $21 $24 $60 $30 $65 $43 $58 $22 $21 $14 $45 $33 $13 $62 $67 $56 $49 $205 $244 $206 $105 12/31/19 12/31/20 12/31/21 12/31/22 Residential and Other Consumer CRE C&I Equipment Franchise SBA(1)

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![](exhibit99212312022016.jpg)

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 $0.6 million, $25.5 million, and $27.8 million of loans rated doubtful at December 31, 2022, September 30, 2022, and December 31, 2021, respectively. (2) Includes the guaranteed portion of non-accrual SBA loans totaling $40.3 million, $41.8 million, $46.1 million, $51.3 million, $45.7 million, at December 31, 2022, September 30, 2022, December 31, 2021, December 31, 2020, and December 31, 2019, respectively. (3) Substandard non-accruing and doubtful includes $7.3 million, $6.6 million, and $20.0 million of loans rated doubtful at September 30 2022, and December 31, 2021, respectively. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 16 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000

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![](exhibit99212312022017.jpg)

Asset Quality – Delinquencies ($ in millions) Commercial (1) CRE Residential (2) (1) Includes lending subsidiaries, excludes PPP loans (2) Excludes government insured residential loans 17 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12/31/21 9/30/22 12/31/22 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12/31/21 9/30/22 12/31/22 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12/31/21 9/30/22 12/31/22

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![](exhibit99212312022018.jpg)

Residential Portfolio Overview At December 31, 2022 High quality residential portfolio consists primarily of 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. 18 Prior 19% 2018 3% 2019 4% 2020 13% 2021 44% 2022 17% 60% or less 35% 61% - 70% 26% 71% - 80% 38% More than 80% 1% <720 or NA 9% 720-759 17% >759 74% Residential Loan Product Type 30 Yr Fixed 31% 15 & 20 Year Fixed 13% 10/1 ARM 12% 5/1 & 7/1 ARM 23% Formerly Covered 1% Govt Insured 20%

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![](exhibit99212312022019.jpg)

Investment Portfolio

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![](exhibit99212312022020.jpg)

20 Investment Securities AFS ($ in thousands) Portfolio Composition Ratings Distribution NR 1% Gov 28% AAA 61% AA 7% A 3% US Government and agency 28% Private label RMBS and CMOs 26% Private label CMBS 26% Residential real estate lease- backed securities 6% CLO 12% State Municipal Obligations 1% Other 1% December 31, 2021 September 30, 2022 December 31, 2022 Portfolio Net Unrealized Gain(Loss) Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss Fair Value US Government and agency $(3,939) $3,249,950 $(142,236) $2,774,123 $(145,601) $2,779,885 Private label RMBS and CMOs (10,716) 2,149,420 (306,193) 2,587,586 (333,926) 2,530,663 Private label CMBS (680) 2,604,010 (109,343) 2,583,888 (120,814) 2,524,354 Residential real estate lease-backed securities 2,123 476,968 (27,233) 478,055 (31,753) 470,441 CLOs (931) 1,078,286 (34,541) 1,059,523 (30,375) 1,136,463 State and Municipal Obligations 16,559 222,277 (9,442) 113,524 (5,520) 116,661 Other 1,419 152,510 (6,549) 100,123 (6,218) 95,976 $3,835 $9,933,421 $(635,537) $9,696,822 $(674,207) $9,654,443

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![](exhibit99212312022021.jpg)

21 Investment Securities – Asset Quality of Select Non-Agency Securities At December 31, 2022 Strong credit enhancement levels Private Label RMBS Private Label CMBS CLOs AAA 94% AA 1% A 5% AAA 85% AA 11% A 4% AAA 79% AA 17% A 4% Rating Min Max Avg AAA 3.0 98.2 17.5 2.3 AA 18.9 33.2 24.0 5.3 A 22.1 25.5 23.0 5.4 Wtd. Avg. 4.1 94.0 17.9 2.5 Subordination Wtd. Avg. Stress Scenario Loss Rating Min Max Avg AAA 30.0 98.1 44.3 6.8 AA 29.3 95.8 41.7 7.5 A 25.1 69.5 38.7 8.8 Wtd. Avg. 29.7 96.7 43.8 7.0 Subordination Wtd. Avg. Stress Scenario Loss Rating Min Max Avg AAA 41.4 59.4 45.8 9.9 AA 31.0 40.8 34.7 8.7 A 25.6 29.4 27.0 10.3 Wtd. Avg. 39.1 55.2 43.2 9.7 Subordination Wtd. Avg. Stress Scenario Loss

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![](exhibit99212312022022.jpg)

Recognitions and Rankings 22 Springbuk, October 2022 100 Healthiest Workplaces in America,#3 Superior rating by BauerFinancial consecutively since its inception Newsweek, March 2022 #4 America's Most Trusted Companies (Banking), Comprehensive Innovation Ranking by Customers for products, conduct, citizenship, workplace and leadership, American Banker, November 2022 #1 Bank Reputation Ranking by Customers, American Banker, November 2022#2 Bank Reputation Ranking by Non- Customers, American Banker, November 2022#9

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![](exhibit99212312022023.jpg)

Non-GAAP Financial Measures

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![](exhibit99212312022024.jpg)

24 Non-GAAP Financial Measures PPNR is a non-GAAP financial measure. Management believes this measure is relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses and the ability of the Company to generate earnings sufficient to cover estimated credit losses, particularly in view of recent volatility of the provision for credit losses. This measure also provides a meaningful basis for comparison to other financial institutions since it is commonly employed and is a measure frequently cited by investors and analysts. The following table reconciles the non-GAAP financial measure of PPNR to the comparable GAAP financial measurement of income before income taxes for the periods indicated (in thousands): December 31, 2022 September 30, 2022 December 31, 2021 Income before income taxes (GAAP) 81,792$117,083$63,531$ Plus: provision for credit losses 39,608 3,720 246 PPNR (non-GAAP) 121,400$120,803$63,777$ Three Months Ended

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![](exhibit99212312022025.jpg)

25 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 December 31, 2022 (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) December 31, 2022 Total stockholders' equity (GAAP) 2,435,981$ Less: goodwill 77,637 Tangible stockholders' equity (non-GAAP) 2,358,344$ Common shares issued and outstanding 75,674,587 Book value per common share (GAAP) 32.19$ Tangible book value per common share (non-GAAP) 31.16$

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