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BankUnited, Inc. Reports 2012 Results, Earnings Exceed $211 Million

  BankUnited, Inc. Reports 2012 Results, Earnings Exceed $211 Million

Business Wire

MIAMI LAKES, Fla. -- January 29, 2013

BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results
for the quarter and year ended December 31, 2012.

For the quarter ended December 31, 2012, the Company reported net income of
$62.5 million, or $0.61 per diluted common share, as compared to $41.3
million, or $0.41 per diluted share, for the quarter ended December 31, 2011.

For the year ended December 31, 2012, the Company reported net income of
$211.3 million, or $2.05 per diluted share, generating a return on average
stockholders’ equity of 12.45% and a return on average assets of 1.71%. The
Company reported net income of $63.2 million, or $0.62 per diluted share, for
the year ended December 31, 2011. Results for 2011 reflected a previously
disclosed one-time charge of $110.4 million, recorded in conjunction with the
Company’s first quarter 2011 initial public offering (“IPO”), which was not
deductible for income tax purposes.

John Kanas, Chairman, President and Chief Executive Officer, said, "Obviously
we are pleased with our financial performance this past year. More importantly
we are greatly encouraged by the growth of our franchise as we continue to
gain market share in south Florida. Our upcoming expansion into New York
combined with the anticipated continuation of improvement in the Florida
economy underscores our optimism toward the future of BankUnited."

Performance Highlights

  *New loans grew by $449.6 million during the fourth quarter of 2012, an
    annualized growth rate of 55%. For the year ended December 31, 2012, new
    loans increased by $2.0 billion to $3.7 billion. For both the fourth
    quarter and the year ended December 31, 2012, new loan growth outpaced the
    resolution of covered loans.
  *Deposits totaled $8.5 billion at December 31, 2012 with demand deposits
    totaling $1.9 billion, or 22% of total deposits. For the year ended
    December 31, 2012, demand deposits grew by $630.8 million, or 52%.
  *The net interest margin, calculated on a tax-equivalent basis, was 6.70%
    for the quarter ended December 31, 2012 compared to 6.54% for the quarter
    ended December 31, 2011 and 6.04% compared to 6.21% for the years ended
    December 31, 2012 and 2011, respectively. The margin for the fourth
    quarter of 2012 benefited from the sale of covered loans from a pool of
    acquired credit impaired (“ACI”) loans that has a zero carrying value, as
    discussed below.
  *Similar to prior years, the Company sold covered loans in the fourth
    quarter of 2012. The aggregate price for the 2012 sales was approximately
    39.6% of the unpaid principal balances (“UPB”) of loans sold, as compared
    to an average of 28.1% of UPB for the years 2009, 2010 and 2011. Since the
    proceeds of the sale of loans from the pool of ACI loans carried at zero
    are recorded as interest income, the Company’s fourth quarter margin
    benefited from the better pricing levels of the sale, and was higher than
    we previously projected.
  *The fourth quarter loan sale also resulted in a loss of $29.3 million on
    the sale of loans from the remaining pools, with an offsetting gain of
    $30.8 million on the FDIC indemnification asset.
  *During the fourth quarter, we sold investment securities with a fair value
    of $526.7 million, utilizing the proceeds to extinguish $520.0 million in
    Federal Home Loan Bank (“FHLB”) advances and terminate a related cash flow
    hedge, with a combined cost of borrowing of 3.46%. We realized a pre-tax
    gain on the sale of securities of $10.0 million and a combined pre-tax
    loss of $22.9 million on the extinguishment of the advances and
    termination of the hedge. This transaction is expected to have a positive
    effect on our net interest margin in 2013.
  *The cost of deposits continues to trend downward. The cost of deposits was
    0.73% for the fourth quarter of 2012 as compared to 0.78% for the third
    quarter of 2012 and 0.99% for the fourth quarter of 2011.
  *We increased our quarterly dividend by 24% to $0.21 per share in the
    fourth quarter of 2012.
  *Book value and tangible book value per common share grew to $18.45 and
    $17.71, respectively, at December 31, 2012.
  *We opened three new Florida branches during the fourth quarter of 2012 and
    anticipate opening three branches in Manhattan in the first quarter of
    2013.

Capital

BankUnited, Inc. continues to maintain a robust capital position. The Company
and its banking subsidiaries exceed all regulatory guidelines required to be
considered well capitalized. The Company’s capital ratios at December 31, 2012
were as follows:

Tier 1 leverage            13.2%
Tier 1 risk-based capital   33.6%
Total risk-based capital    34.9%

Loans

Loans, net of premiums, discounts and deferred fees and costs, increased to
$5.6 billion at December 31, 2012 from $4.1 billion at December 31, 2011. New
loans grew by $2.0 billion to $3.7 billion at December 31, 2012 from $1.7
billion at December 31, 2011. Covered loans declined to $1.9 billion at
December 31, 2012 from $2.4 billion at December 31, 2011.

For the year ended December 31, 2012, new commercial loans, including
commercial loans, commercial real estate loans and leases, grew $1.5 billion
to $2.7 billion, primarily reflecting the Company’s continued expansion of
market share in Florida. New residential loans grew by $459.2 million to
$922.7 million during 2012, primarily as a result of the purchase of
residential loans outside of Florida to diversify credit risk within the
residential portfolio.

In the fourth quarter of 2012, new commercial loans grew by $319.7 million
while the Company’s new residential portfolio grew by $114.1 million.

A comparison of portfolio composition at December 31, 2012 and December 31,
2011 follows:

                            New Loans                    Total Loans
                             December 31,  December 31,   December  December
                                                           31,        31,
                             2012           2011           2012       2011
Single family residential    25.0%          27.0%          45.3%      60.2%
and home equity
Commercial real estate       31.8%          26.2%          25.6%      19.4%
Commercial                   42.3%          46.6%          28.5%      20.2%
Consumer                     0.9%           0.2%           0.6%       0.2%
                             100.0%         100.0%         100.0%     100.0%

Asset Quality

Asset quality remained strong. Credit risk continues to be limited, though to
a declining extent, by the Loss Sharing Agreements with the FDIC. At December
31, 2012, covered loans represented 33% of the total loan portfolio, as
compared to 59% at December 31, 2011.

The ratio of non-performing new loans to total new loans was 0.43% at December
31, 2012 and 0.17% at December 31, 2011. The ratio of total non-performing
loans to total loans was 0.62% at December 31, 2012 as compared to 0.70% at
December 31, 2011. At December 31, 2012, non-performing assets totaled $110.6
million, including $76.0 million of other real estate owned (“OREO”), as
compared to $152.6 million, including $123.7 million of OREO, at December 31,
2011. At December 31, 2012, 85.47% of total non-performing assets, including
all OREO, were covered assets.

For the quarters ended December 31, 2012 and 2011, the Company recorded
provisions for (recoveries of) loan losses of $1.0 million and $4.0 million,
respectively. Of these amounts, $(1.6) million and $(4.9) million,
respectively, related to covered loans and $2.7 million and $8.9 million,
respectively, related to new loans.

For the years ended December 31, 2012 and 2011, the Company recorded
provisions for (recoveries of) loan losses of $18.9 million and $13.8 million,
respectively. Of these amounts, $(0.5) million and $(7.7) million,
respectively, related to covered loans, and $19.4 million and $21.5 million,
respectively, related to new loans. The decrease in the provision related to
new loans resulted primarily from a reduction in loss factors applied to the
commercial portfolio.

The provisions (recoveries) related to covered loans were significantly
mitigated by increases (decreases) in non-interest income recorded in “Net
gain (loss) on indemnification asset.”

The following table summarizes the activity in the allowance for loan and
lease losses for the quarters and years ended December 31, 2012 and 2011 (in
thousands):

              Three Months Ended December 31, 2012          Three Months Ended December 31, 2011
                ACI Loans  Non-ACI   New Loans  Total       ACI Loans  Non-ACI    New Loans  Total
                            Loans                                          Loans
Balance at
beginning of    $ 9,922     $ 10,865   $ 39,629    $ 60,416    $ 22,132    $ 14,933    $ 17,993    $ 55,058
period
  Provision       (698)       (942)      2,670       1,030       (3,015)     (1,872)     8,899       4,012
  Charge-offs     (1,205)     (519)      (1,235)     (2,959)     (2,785)     (5,444)     (2,573)     (10,802)
  Recoveries     -          470       164        634        -          125        9          134
Balance at      $ 8,019     $ 9,874    $ 41,228    $ 59,121    $ 16,332    $ 7,742     $ 24,328    $ 48,402
end of period

              Year Ended December 31, 2012                    Year Ended December 31, 2011
                ACI Loans  Non-ACI    New Loans  Total        ACI Loans   Non-ACI    New Loans  Total
                            Loans                                             Loans
Balance at
beginning of    $ 16,332    $ 7,742     $ 24,328    $ 48,402     $ 39,925     $ 12,284    $ 6,151     $ 58,360
period
  Provision       (4,347)     3,844       19,399      18,896       (11,278)     3,586       21,520      13,828
  Charge-offs     (3,966)     (3,591)     (2,929)     (10,486)     (13,527)     (8,489)     (3,367)     (25,383)
  Recoveries     -          1,879      430        2,309       1,212      361        24         1,597
Balance at      $ 8,019     $ 9,874     $ 41,228    $ 59,121     $ 16,332    $ 7,742     $ 24,328    $ 48,402
end of period

Deposits

At December 31, 2012, deposits totaled $8.5 billion compared to $7.4 billion
at December 31, 2011. Demand deposits, including non-interest bearing and
interest bearing deposits, grew $630.8 million to $1.9 billion or 22% of total
deposits at December 31, 2012 from $1.2 billion or 17% of total deposits at
December 31, 2011. This growth was concentrated in commercial and small
business accounts. The average cost of deposits was 0.73% for the quarter
ended December 31, 2012 as compared to 0.99% for the quarter ended December
31, 2011 and 0.81% for the year ended December 31, 2012 as compared to 1.09%
for the year ended December 31, 2011. The decrease in the average cost of
deposits was primarily attributable to the continued growth in lower cost
deposit products and a decline in market rates of interest. Excluding the
impact of hedge accounting and accretion of fair value adjustments, the
average cost of deposits was 0.68% and 0.76% for the quarter and year ended
December 31, 2012.

Net interest income

Net interest income for the quarter ended December 31, 2012 grew to $174.6
million from $140.7 million for the quarter ended December 31, 2011. Net
interest income for the year ended December 31, 2012 was $597.6 million as
compared to $499.2 million for the year ended December 31, 2011.

The Company’s net interest margin, calculated on a tax-equivalent basis, was
6.70% for the quarter ended December 31, 2012 as compared to 6.54% for the
quarter ended December 31, 2011. Significant factors impacting the trend in
net interest margin for the fourth quarter of 2012 included:

  *Higher than projected proceeds of $29.9 million from the sale of ACI loans
    from a pool with a carrying value of zero were recorded in interest
    income. The fourth quarter also benefited from an adjustment to accretion
    on non-ACI residential loans resulting from a change in estimated
    prepayment rates.
  *Exclusive of the impact of proceeds from the loan sale, the tax-equivalent
    yield on loans declined by 3.83% for the quarter ended December 31, 2012
    as compared to the quarter ended December 31, 2011, primarily because new
    loans originated at yields lower than those on the covered loan portfolio
    comprised a greater percentage of total loans.
  *The tax-equivalent yield on investment securities declined to 2.78% for
    the quarter ended December 31, 2012 from 3.24% for the quarter ended
    December 31, 2011, reflecting the impact of lower prevailing market rates
    of interest.
  *The average rate on interest-bearing liabilities declined to 1.17% for the
    quarter ended December 31, 2012 from 1.54% for the quarter ended December
    31, 2011, primarily due to declining market interest rates.

The tax-equivalent net interest margin for the year ended December 31, 2012
was 6.04% as compared to 6.21% for the year ended December 31, 2011. The
decline in net interest margin reflected lower yields on loans and investment
securities, partially offset by a reduced cost of funds.

The Company’s net interest margin for the quarters and years ended December
31, 2012 and 2011 was also impacted by reclassifications from non-accretable
difference to accretable yield on ACI loans. Non-accretable difference at
acquisition represented the difference between the total contractual payments
due and the cash flows expected to be received on these loans. The accretable
yield on ACI loans represented the amount by which undiscounted expected
future cash flows exceeded the carrying value of the loans. As the Company’s
expected cash flows from ACI loans have increased since the FSB Acquisition
(as defined below), the Company has reclassified amounts from non-accretable
difference to accretable yield.

Changes in accretable yield on ACI loans for the years ended December 31, 2012
and 2011 were as follows (in thousands):

 Balance, December 31, 2010                          $ 1,833,974
   Reclassifications from non-accretable difference     135,933
    Accretion                                           (446,292)
  Balance, December 31, 2011                             1,523,615
    Reclassifications from non-accretable difference     206,934
    Accretion                                           (444,483)
  Balance, December 31, 2012                           $ 1,286,066

Non-interest income

Non-interest income for the quarter ended December 31, 2012 was $5.5 million,
as compared to $13.3 million for the quarter ended December 31, 2011. For the
year ended December 31, 2012, non-interest income was $89.2 million as
compared to $163.2 million for the year ended December 31, 2011.

Non-interest income for the quarter and year ended December 31, 2012 was
impacted by lower accretion of discount on the FDIC indemnification asset of
$0.8 million and $15.3 million, respectively, as compared to $10.7 million and
$55.9 million, respectively, for the quarter and year ended December 31, 2011.
As the expected cash flows from ACI loans have increased as discussed above,
cash flows from the FDIC indemnification asset have decreased, resulting in
lower accretion. We expect the rate of accretion on the FDIC indemnification
asset to be negative beginning in the first quarter of 2013.

Income from resolution of covered assets, net was $11.4 million and $51.0
million, respectively, for the quarter and year ended December 31, 2012
compared to $11.7 million and $18.8 million, respectively, for the quarter and
year ended December 31, 2011. This increase in income for the year ended
December 31, 2012 resulted mainly from higher payoffs of ACI residential
loans.

Loss on sale of covered loans, net was $29.3 million for each of the quarter
and year ended December 31, 2012 compared to $70.4 million for each of the
quarter and year ended December 31, 2011. The decrease in the amount of the
loss was related to improved pricing and the effect of the sale of loans from
the pool of ACI loans with a carrying value of zero. No loss was recorded
related to the sale of loans from this pool. As discussed above, proceeds from
the sale of loans in this pool were recorded in interest income. The carrying
value of this pool was reduced to zero after the sale of covered loans in
2011.

Net gain (loss) on indemnification asset was $20.6 million and $(6.0) million,
respectively, for the quarter and year ended December 31, 2012, as compared to
$43.0 million and $79.8 million, respectively, for the quarter and year ended
December 31, 2011. The primary factor impacting the decrease for the quarter
ended December 31, 2012 as compared to the quarter ended December 31, 2011 was
the decline in the loss on sale of covered loans. Other significant factors
influencing the decline for the year ended December 31, 2012 as compared to
the year ended December 31, 2011 included increased income from resolution of
covered assets, net, reduced OREO impairment and more favorable gains (losses)
on the sale of OREO as discussed further below.

In addition, as discussed above, the quarter ended December 31, 2012 included
approximately $10.1 million of gains on the sale of investment securities,
$14.2 million in losses on the extinguishment of FHLB advances and a loss of
$8.7 million on the termination of a cash flow hedge.

Non-interest expense

Non-interest expense totaled $78.7 million for the quarter ended December 31,
2012 as compared to $75.8 million for the quarter ended December 31, 2011. For
the year ended December 31, 2012, non-interest expense totaled $323.1 million
as compared to $455.8 million for the year ended December 31, 2011.
Non-interest expense for the year ended December 31, 2011 included a one-time
compensation expense of $110.4 million recorded in conjunction with the
Company’s IPO.

Employee compensation and benefits (excluding the one-time charge of $110.4
million discussed above) and occupancy and equipment expense increased for
2012 as compared to 2011, reflecting the Company’s continued growth and the
opening and refurbishment of branches.

For the quarter and year ended December 31, 2012, the aggregate of foreclosure
expense, OREO expense, gain (loss) on sale of OREO and impairment of OREO
totaled $4.7 million and $26.0 million, respectively, as compared to $7.5
million and $80.1 million, respectively, for the quarter and year ended
December 31, 2011. The sharply lower level of expense for the quarter and year
ended December 31, 2012 reflected lower levels of OREO and foreclosure
activity as well as improving real estate market trends as compared to the
prior year.

Earnings Conference Call and Presentation

A conference call to discuss the fourth quarter results will be held at 9:00
a.m. ET on Tuesday, January 29, 2013 with Chairman, President and Chief
Executive Officer, John A. Kanas, and Chief Financial Officer, Douglas J.
Pauls.

The earnings release will be available on the Investor Relations page under
About Us on www.bankunited.com prior to the call. The call may be accessed via
a live Internet webcast at www.bankunited.com or through a dial in telephone
number at (888) 679-8038 (domestic) or (617) 213-4850 (international). The
name of the call is BankUnited, and the passcode for the call is 89454096. A
replay of the call will be available from 11:00 a.m. EDT on January 29th
through 11:59 p.m. EDT on February 5th by calling (888) 286-8010 (domestic) or
(617) 801-6888 (international). The passcode for the replay is 48177553. An
archived webcast will also be available on the Investor Relations page of
www.bankunited.com.

About BankUnited, Inc. and the FSB Acquisition

BankUnited, Inc. is a bank holding company with three wholly-owned
subsidiaries: BankUnited, N.A., which is one of the largest independent
depository institutions headquartered in Florida by assets, BankUnited
Investment Services, Inc., a Florida insurance agency which provides wealth
management products and financial planning services, and Herald National Bank,
a commercial bank servicing the New York City market. BankUnited, N.A., is a
national bank headquartered in Miami Lakes, Florida with $11.7 billion of
assets, more than 1,360 professionals and 98 branches in 15 counties at
December 31, 2012.

The Company was organized by a management team led by its Chairman, President
and Chief Executive Officer, John A. Kanas, on April 28, 2009. On May 21,
2009, BankUnited acquired substantially all of the assets and assumed all of
the non-brokered deposits and substantially all other liabilities of
BankUnited, FSB from the FDIC, in a transaction referred to as the FSB
Acquisition. Concurrently with the FSB Acquisition, BankUnited entered into
two loss sharing agreements, or the Loss Sharing Agreements, which covered
certain legacy assets, including the entire legacy loan portfolio and OREO,
and certain purchased investment securities. Assets covered by the Loss
Sharing Agreements are referred to as “covered assets” (or, in certain cases,
“covered loans”). The Loss Sharing Agreements do not apply to subsequently
acquired, purchased or originated assets. Pursuant to the terms of the Loss
Sharing Agreements, the covered assets are subject to a stated loss threshold
whereby the FDIC will reimburse BankUnited for 80% of losses, including
certain interest and expenses, up to the $4.0 billion stated threshold and 95%
of losses in excess of the $4.0 billion stated threshold. The Company’s
current estimate of cumulative losses on the covered assets is approximately
$4.6 billion. The Company has received $2.3 billion from the FDIC in
reimbursements under the Loss Sharing Agreements for claims filed for incurred
losses as of December 31, 2012.

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” 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 relating to the Company’s
operations, financial results, financial condition, business prospects, growth
strategy and liquidity. 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, 2011
available at the SEC’s website (www.sec.gov).

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data)
                                                             
                                                                    
                                                                    
                                                   December 31,   December 31,
                                                   2012           2011
ASSETS
                                                                    
Cash and due from banks:
   Non-interest bearing                            $ 61,088       $ 39,894
   Interest bearing                                  21,507         13,160
Interest bearing deposits at Federal Reserve         408,827        247,488
Bank
Federal funds sold                                  3,931         3,200
   Cash and cash equivalents                         495,353        303,742
Investment securities available for sale, at
fair value
   (including covered securities of $226,505 and     4,172,412      4,181,977
   $232,194)
Non-marketable equity securities                     133,060        147,055
Loans held for sale                                  2,129          3,952
Loans (including covered loans of $1,864,375 and     5,571,739      4,137,058
$2,422,811)
   Allowance for loan and lease losses              (59,121)      (48,402)
     Loans, net                                      5,512,618      4,088,656
FDIC indemnification asset                           1,457,570      2,049,151
Bank owned life insurance                            207,069        204,077
Other real estate owned, covered by loss sharing     76,022         123,737
agreements
Deferred tax asset, net                              62,274         19,485
Goodwill and other intangible assets                 69,768         68,667
Other assets                                        187,678       131,539
     Total assets                                  $ 12,375,953   $ 11,322,038
                                                                    
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                                    
Liabilities:
   Demand deposits:
     Non-interest bearing                          $ 1,312,779    $ 770,846
     Interest bearing                                542,561        453,666
   Savings and money market                          4,042,022      3,553,018
   Time                                             2,640,711     2,587,184
     Total deposits                                  8,538,073      7,364,714
   Short-term borrowings                             8,175          206
   Federal Home Loan Bank advances                   1,916,919      2,236,131
   Income taxes payable                              -              53,171
   Other liabilities                                106,106       132,536
     Total liabilities                               10,569,273     9,786,758
                                                                    
Commitments and contingencies
                                                                    
Stockholders' equity:
   Common stock, par value $0.01 per share,
   400,000,000 shares authorized;
     95,006,729 and 97,700,829 shares issued and     950            977
     outstanding
   Preferred stock, par value $0.01 per share,
   100,000,000 shares authorized;
     5,415,794 shares of Series A issued and         54             -
     outstanding at December 31, 2012
   Paid-in capital                                   1,308,315      1,240,068
   Retained earnings                                 413,385        276,216
   Accumulated other comprehensive income           83,976        18,019
     Total stockholders' equity                     1,806,680     1,535,280
     Total liabilities and stockholders' equity    $ 12,375,953   $ 11,322,038

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
                                                             
                                                                      
                                                                      
                        Three Months Ended December    Years Ended December
                        31,                            31,
                        2012            2011           2012         2011
                                                                      
Interest income:
  Loans                 $  168,770      $  $142,185    $ 584,727    $ 512,728
  Investment
  securities               31,951          31,856        131,198      122,626
  available for sale
  Other                   1,625          598          4,931       2,743
      Total interest      202,346        174,639      720,856     638,097
      income
Interest expense:
  Deposits                 15,712          18,006        66,178       75,773
  Borrowings              12,070         15,920       57,091      63,164
      Total interest      27,782         33,926       123,269     138,937
      expense
      Net interest
      income before
      provision for        174,564         140,713       597,587      499,160
      (recovery of)
      loan losses
  Provision for
  (recovery of) loan
  losses (including
  $(1,640),
      $(4,887),
      $(503) and          1,030          4,012        18,896      13,828
      $(7,692) for
      covered loans)
      Net interest
      income after
      provision for       173,534        136,701      578,691     485,332
      (recovery of)
      loan losses
Non-interest income:
  Accretion of
  discount on FDIC         793             10,654        15,306       55,901
  indemnification
  asset
  Income from
  resolution of            11,414          11,708        51,016       18,776
  covered assets, net
  Net gain (loss) on
  indemnification          20,572          42,955        (6,030)      79,812
  asset
  FDIC reimbursement
  of costs of              6,154           6,928         19,569       31,528
  resolution of
  covered assets
  Service charges and      3,276           2,733         12,716       11,128
  fees
  Loss on sale of
  loans, net
  (including loss
  related to covered
      loans of
      $29,333,
      $70,366,             (29,355)        (70,117)      (28,657)     (69,714)
      $29,270 and
      $70,366)
  Gain (loss) on sale
  of investment
  securities               10,108          (79)          17,039       1,136
  available for sale,
  net
  Loss on
  extinguishment of        (14,175)        -             (14,175)     -
  debt
  Loss on termination
  of interest rate         (8,701)         -             (8,701)      -
  swap
  Mortgage insurance       862             4,676         9,772        16,904
  income
  Other non-interest      4,551          3,884        21,392      17,746
  income
      Total
      non-interest        5,499          13,342       89,247      163,217
      income
Non-interest expense:
  Employee
  compensation and
  benefits (including
  $110.4 million in
  equity
      based
      compensation
      recorded in          40,717          40,971        173,261      272,991
      conjunction
      with the IPO
      for 2011)
  Occupancy and            15,689          10,405        54,465       36,680
  equipment
  Impairment of other      1,946           2,746         9,926        24,569
  real estate owned
  (Gain) loss on sale
  of other real            (2,665)         (3,763)       (4,164)      23,576
  estate owned
  Other real estate        2,431           3,881         7,624        13,001
  owned expense
  Foreclosure expense      2,973           4,590         12,644       18,976
  Deposit insurance        2,112           1,828         7,248        8,480
  expense
  Professional fees        4,016           5,126         15,468       17,330
  Telecommunications       2,732           2,266         12,462       12,041
  and data processing
  Other non-interest      8,751          7,775        34,139      28,161
  expense
      Total
      non-interest        78,702         75,825       323,073     455,805
      expense
Income before income       100,331         74,218        344,865      192,744
taxes
Provision for income      37,829         32,938       133,605     129,576
taxes
      Net income           62,502          41,280        211,260      63,168
Preferred stock           1,137          -            3,899       -
dividends
      Net income
      available to      $  61,365       $  41,280      $ 207,361    $ 63,168
      common
      stockholders
Earnings per common     $  0.61         $  0.41        $ 2.05       $ 0.63
share, basic
Earnings per common     $  0.61         $  0.41        $ 2.05       $ 0.62
share, diluted
Cash dividends
declared per common     $  0.21         $  0.14        $ 0.72       $ 0.56
share

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
                                                                           
                                                                                  
                  Three Months Ended December 31,
                  2012                                  2011
                  Average                    Yield/     Average                    Yield/
                  Balance        Interest    Rate (2)   Balance        Interest    Rate (2)
                                 (1)                                   (1)
Assets:
Interest
earning assets:
Loans             $ 5,334,961    $ 169,668     12.70%   $ 3,982,354    $ 142,555     14.29%
Investment
securities          4,698,454      32,704      2.78%      4,113,223      33,307      3.24%
available for
sale
Other interest     481,299       1,625      1.35%     617,501       598        0.38%
earning assets
  Total
  interest          10,514,714     203,997     7.75%      8,713,078      176,460     8.09%
  earning
  assets
Allowance for
loan and lease      (62,189)                              (53,811)
losses
Non-interest       2,323,689                            2,597,226
earning assets
  Total assets    $ 12,776,214                          $ 11,256,493
Liabilities and
Stockholders'
Equity:
Interest
bearing
liabilities:
Interest
bearing demand    $ 535,240        749         0.56%    $ 422,193        685         0.64%
deposits
Savings and
money market        4,038,706      5,303       0.52%      3,535,825      7,178       0.81%
deposits
Time deposits      2,664,771     9,660      1.44%     2,534,917     10,143     1.59%
  Total
  interest          7,238,717      15,712      0.86%      6,492,935      18,006      1.10%
  bearing
  deposits
Borrowings:
FHLB advances       2,222,656      12,064      2.16%      2,238,982      15,919      2.82%
Short-term         5,461         6          0.46%     328           1          0.49%
borrowings
  Total
  interest          9,466,834     27,782      1.17%      8,732,245     33,926      1.54%
  bearing
  liabilities
Non-interest
bearing demand      1,276,043                             708,490
deposits
Other
non-interest       231,276                              299,902
bearing
liabilities
  Total             10,974,153                            9,740,637
  liabilities
Stockholders'      1,802,061                            1,515,856
equity
  Total
  liabilities
  and             $ 12,776,214                          $ 11,256,493
  stockholders'
  equity
Net interest                     $ 176,215                             $ 142,534
income
Interest rate                                 6.58%                                6.55%
spread
Net interest                                  6.70%                                6.54%
margin

(1) On a tax-equivalent basis where applicable
(2) Annualized

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
                                                                           
                                                                                     
                  Years Ended December 31,
                  2012                                  2011
                  Average                    Yield/     Average                    Yield/
                  Balance        Interest    Rate       Balance        Interest    Rate
                                 (1)                                   (1)
Assets:
Interest
earning assets:
Loans             $ 4,887,209    $ 587,571     12.02%   $ 3,848,837    $ 513,539     13.34%
Investment
securities          4,611,379      135,833     2.95%      3,654,137      127,630     3.49%
available for
sale
Other interest     522,184       4,931      0.94%     628,782       2,743      0.44%
earning assets
  Total
  interest          10,020,772     728,335     7.27%      8,131,756      643,912     7.92%
  earning
  assets
Allowance for
loan and lease      (56,463)                              (57,462)
losses
Non-interest       2,387,719                            2,866,486
earning assets
  Total assets    $ 12,352,028                          $ 10,940,780
Liabilities and
Stockholders'
Equity:
Interest
bearing
liabilities:
Interest
bearing demand    $ 504,614        3,155       0.63%    $ 382,329        2,499       0.65%
deposits
Savings and
money market        3,912,444      24,093      0.62%      3,366,466      29,026      0.86%
deposits
Time deposits      2,632,451     38,930     1.48%     2,585,201     44,248     1.71%
  Total
  interest          7,049,509      66,178      0.94%      6,333,996      75,773      1.20%
  bearing
  deposits
Borrowings:
FHLB advances       2,227,910      57,040      2.56%      2,246,068      63,158      2.81%
Short-term         12,435        51         0.41%     1,333         6          0.48%
borrowings
  Total
  interest          9,289,854     123,269     1.33%      8,581,397     138,937     1.62%
  bearing
  liabilities
Non-interest
bearing demand      1,099,448                             622,377
deposits
Other
non-interest       265,399                              282,416
bearing
liabilities
  Total             10,654,701                            9,486,190
  liabilities
Stockholders'      1,697,327                            1,454,590
equity
  Total
  liabilities
  and             $ 12,352,028                          $ 10,940,780
  stockholders'
  equity
Net interest                     $ 605,066                             $ 504,975
income
Interest rate                                 5.94%                                6.30%
spread
Net interest                                  6.04%                                6.21%
margin

(1) On a tax-equivalent basis where applicable

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share amounts)
                                                           
                                                                   
                  Three Months Ended             Years Ended
                  December 31,                   December 31,
                  2012           2011            2012            2011
Basic earnings
per common
share:
Numerator:
Net income        $ 62,502       $ 41,280        $ 211,260       $ 63,168
Preferred stock    (1,137)       -              (3,899)        -
dividends
  Net income
  available to      61,365         41,280          207,361         63,168
  common
  stockholders
Distributed and
undistributed
earnings           (4,608)       (2,129)        (15,081)       (3,449)
allocated to
participating
securities
  Income
  allocated to
  common
  stockholders    $ 56,757       $ 39,151        $ 192,280       $ 59,719
  for basic
  earnings per
  common share
Denominator:
Weighted
average common      94,597,067     96,033,910      94,791,484      96,875,386
shares
outstanding
Less average
unvested stock     (997,655)     (1,323,425)    (1,137,210)    (1,421,694)
awards
  Weighted
  average
  shares for       93,599,412    94,710,485     93,654,274     95,453,692
  basic
  earnings per
  common share
Basic earnings
per common        $ 0.61         $ 0.41          $ 2.05          $ 0.63
share
Diluted
earnings per
common share:
Numerator:
Income
allocated to
common
stockholders      $ 56,757       $ 39,151        $ 192,280         59,719
for basic
earnings per
common share
Adjustment for
earnings
reallocated        6             2              20             -
from
participating
securities
  Income used
  in
  calculating     $ 56,763       $ 39,153        $ 192,300       $ 59,719
  diluted
  earnings per
  common share
Denominator:
Average shares
for basic           93,599,412     94,710,485      93,654,274      95,453,692
earnings per
common share
Dilutive effect
of stock           162,880       121,212        174,509        151,585
options
  Weighted
  average
  shares for       93,762,292    94,831,697     93,828,783     95,605,277
  diluted
  earnings per
  common share
Diluted
earnings per      $ 0.61         $ 0.41          $ 2.05          $ 0.62
common share

BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
                                                                 
                                                                        
                              Three Months Ended December    Years Ended
                              31,                            December 31,
Financial ratios              2012 (4)         2011 (4)      2012       2011
      Return on average       1.95%            1.45%         1.71%      0.58%
      assets
      Return on average
      stockholders'           13.80%           10.80%        12.45%     4.34%
      equity
      Net interest margin     6.70%            6.54%         6.04%      6.21%
                                                                        
                                                                        
                              December         December
Capital ratios                31,              31,
                              2012             2011
      Tier 1 risk-based       33.60%           41.62%
      capital
      Total risk-based        34.88%           42.89%
      capital
      Tier 1 leverage         13.16%           13.06%
                                                                        
                                                                        
Asset quality ratios          December         December
                              31, 2012         31, 2011
      Non-performing
      loans to total          0.62%            0.70%
      loans (1) (3)
      Non-performing
      assets to total         0.89%            1.35%
      assets (2)
      Allowance for loan
      losses to total         1.06%            1.17%
      loans (3)
      Allowance for loan
      losses to               171.21%          167.59%
      non-performing
      loans (1)
      Net charge-offs to      0.17%            0.62%
      average loans
                                                                        
      We define non-performing loans to include nonaccrual loans, loans, other
(1)   than ACI loans, that are past due 90 days or more and still accruing and
      certain loans modified in troubled debt restructurings. Contractually
      delinquent ACI loans on which interest continues to be accreted are
      excluded from non-performing loans.
                                                                        
(2)   Non-performing assets include non-performing loans and other real estate
      owned.
                                                                        
(3)   Total loans is net of unearned discounts, premiums and deferred fees and
      costs.
                                                                        
(4)   Annualized

Contact:

BankUnited, Inc.
Investor Relations:
Douglas J. Pauls, 305-461-6841
dpauls@bankunited.com
or
Media Relations:
Mary Harris, 305-817-8117
mharris@bankunited.com