Continued Franchise Momentum Drives NIM Expansion, Stronger Funding Mix and Improved Credit Trends

MIAMI LAKES, Fla.--(BUSINESS WIRE)-- BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended September 30, 2026.

Chairman, President and Chief Executive Officer Rajinder Singh commented, "We delivered another quarter of solid performance, with continued deposit momentum and net interest margin expanding to 3.16%, ahead of our guidance. Benefiting from a strong economy, we remain focused on increasing profitability and creating long-term shareholder value."

Net Interest Income & Margin

Net interest income and margin increased from the prior quarter due to the following factors:

• Deposit pricing continued to improve, contributing to lower funding costs; average cost of deposits improved by 6 bps to 1.99%.
• The tax equivalent yield on investment securities benefited from the sale of lower-yielding securities and reinvestment into higher-yielding securities, which improved the overall yield of the investment portfolio.
• Tax equivalent yields on commercial loans increased 5 bps from the prior quarter, reflecting favorable loan repricing and improved commercial loan portfolio mix.

Net interest income and margin also increased from a year ago due to the following factors:

• Average NIDDA grew by $824 million while average interest bearing liabilities declined by $1.0 billion; average cost of deposits improved by 39 bps from a year ago.
• Partially offset by lower tax-equivalent asset yields, as variable-rate loans and securities repriced downward faster than the benefit from lower funding costs and favorable funding mix dynamic due to lower SOFR/Fed funds basis.

Non-Interest Income and Non-Interest Expense

The following table summarizes non-interest income and non-interest expense for the periods presented (in millions):

• Non-interest income decreased from prior quarter and from a year ago due to the following factors:
  • Loss on sale of investment securities primarily driven by the strategic sale of lower-yielding securities of approximately $1.0 billion and the redeployment of proceeds into higher-yielding investments to improve the portfolio's earning potential.
  • BOLI income decreased $1.9 million from prior quarter and $1.4 million from a year ago reflecting less favorable market performance impacting returns on one of our policies.
  • Lease financing income decreased $2.2 million from prior quarter and decreased $2.5 million from a year ago primarily due to a $1.1 million loss on equipment disposition recognized during the quarter, compared to a $0.9 million gain in prior quarter and $0.2 million gain a year ago.
  • Capital Markets income decreased $1.8 million from prior quarter, driven by market conditions and shifts in loan production timelines.
• Non-interest expense remained flat compared to the prior quarter, and increased compared to a year ago primarily as a result of increases in employee compensation and deposit-related costs due to competition.

Loans

• Average CRE loans increased by $75 million, or 1%, from prior quarter and increased by $624 million, or 10%, from a year ago.
• Average C&I loans decreased by $306 million, or 4%, from prior quarter and decreased by $91 million, or 1%, from a year ago.
• Average MWL (Mortgage Warehouse Lending) loans increased by $133 million, or 18%, from prior quarter and $226 million, or 35%, from a year ago.
• Average Residential loans decreased by $151 million, or 2%, from the prior quarter and $621 million, or 9%, from a year ago; consistent with our balance sheet repositioning strategy.

Loan portfolio composition at the periods indicated are as follows (in thousands):

Deposits

Deposit portfolio composition at the periods indicated are as follows (in thousands):

Credit

Credit Quality

Credit quality metrics remained strong during Q3, as criticized and classified loans decreased and non-performing loans modestly increased from prior quarter.

• Criticized and Classified Loans: Decreased $10 million from prior quarter, and $176 million from a year ago.
• Net Charge-Offs: Net charge-offs for the quarter (annualized) was 0.11%, flat from prior quarter and down 0.14% from a year ago.
• Non-Performing Loans: Up $40 million, or 18%, from prior quarter and down $116 million, or 30%, from a year ago.
• NPA Ratio: 0.77%, including 0.09% related to guaranteed portion of SBA loans, up from 0.66%, including 0.09% related to SBA, in prior quarter, and down from 1.10%, including 0.11% related to SBA, from a year ago.

The following table provides a breakdown of criticized and classified loans for the periods indicated (in thousands):

Allowance & Provision

Allowance levels and coverage remained appropriate during the periods presented, with changes reflecting increases in certain qualitative factors and net charge-offs. The following tables summarize the ACL, key coverage metrics, and changes across the periods presented (dollars in thousands):

Capital, Liquidity & Shareholder Returns

Capital levels remained strong and well above regulatory requirements, providing ability to execute growth initiatives while continuing to return capital to shareholders.

• AOCI declined by $137.8 million from prior quarter and by $149.6 million compared to a year ago, reflecting higher unrealized losses on investment securities available for sale.
• CET1: 12.1%, down 20 bps from prior quarter and down 40 bps from a year ago.
• Tangible Common Equity Ratio: 8.0%, down 45 bps from prior quarter and 49 bps from a year ago.
• Tangible Book Value per Share1: $39.10, down from $40.48 in the prior quarter, while remaining essentially flat from a year ago.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Wednesday, October 21, 2026 with Chairman, President and Chief Executive Officer Rajinder P. Singh, Chief Financial Officer James G. Mackey and Chief Operating Officer Thomas M. Cornish.

The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://dpregister.com/sreg/10211384/104b2a22228. For those unable to join the live event, an archived webcast will be available on the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.

About BankUnited, Inc.

BankUnited, Inc., with total assets of $34.6 billion at September 30, 2026, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida, with operations in Florida, New York, Dallas, Atlanta, Morristown, New Jersey, and Charlotte, North Carolina. BankUnited provides a full range of consumer and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions, and offers certain commercial lending and deposit products through national platforms. For additional information, call (877) 779-2265 or visit www.BankUnited.com. BankUnited can be found on Facebook at facebook.com/BankUnited.official, LinkedIn@BankUnited and on X@BankUnited.

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, dividend payments and stock repurchases. 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 limitation) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control, such as (1) an inability to successfully execute our core business strategy; (2) adverse events or conditions impacting the financial services industry, (3) our ability to access capital, including the impact of our credit rating; (4) credit risk inherent in the business of making loans and embedded in our securities portfolio, including inadequate allowance for credit losses and real estate market conditions and valuations; (5) interest rate risk, (6) liquidity risks, (7) risks related to the regulation of our industry, (8) operational risk, including dependence on information technology and third party service providers and the risk of systems failures, interruptions or breaches of security or inability to keep pace with technological change; (9) reputational risk, (10) the impact of conditions in the financial markets and economic conditions generally; (11) ineffective risk management or internal controls; and (12) the selection and application of accounting policies and methods and related assumptions and estimates. 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, 2025, 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).

BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data)
		Nine Months Ended
		September 30, 2026			September 30, 2025
Interest income:
Loans		$	937,544		$	973,864
Investment securities			323,899			351,634
Other			17,280			24,892
Total interest income			1,278,723			1,350,390
Interest expense:
Deposits			435,625			508,460
Borrowings			78,129			112,560
Total interest expense			513,754			621,020
Net interest income before provision for credit losses			764,969			729,370
Provision for credit losses			49,097			42,386
Net interest income after provision for credit losses			715,872			686,984
Non-interest income:
Deposit service charges and fees			18,963			15,945
Gain on investment securities, net			1,926			1,940
Lease financing			8,947			13,077
Capital markets income			18,026			18,290
Other non-interest income			25,862			26,394
Total non-interest income			73,724			75,646
Non-interest expense:
Employee compensation and benefits			275,769			251,095
Occupancy and equipment			33,633			33,217
Deposit insurance expense			9,843			20,804
Technology			66,114			67,902
Depreciation of operating lease equipment			9,931			12,301
Deposit-related costs			63,297			52,740
Other non-interest expense			57,982			52,663
Total non-interest expense			516,569			490,722
Income before income taxes			273,027			271,908
Provision for income taxes			68,319			72,815
Net income		$	204,708		$	199,093
Earnings per common share, basic		$	2.82		$	2.65
Earnings per common share, diluted		$	2.80		$	2.63