BankUnited, Inc. Reports 1Q 2026 Net Income of $62 million, $0.83 Diluted EPS

Chairman, President and Chief Executive Officer Rajinder Singh commented, "Despite a seasonally slow quarter, we continue to gather market share and position the Company for improved profitability and growth."

• Total Deposits excluding brokered: up $1.4 billion from a year ago, and up $277 million from prior quarter.
• NIDDA:
  • Up $875 million, or 11%, from a year ago.
  • Down $166 million from prior quarter, primarily due to seasonality.
  • Represents 30% of total deposits at March 31, 2026.
• Loans:
  • Core loans: Up $906 million from a year ago and $9 million from prior quarter.
  • Total loans up $145 million from a year ago.
  • Total loans down $139 million from prior quarter primarily due to seasonally low commercial volume and continued runoff of non-core loans.
• Criticized and classified loans:
  • Down $333 million, or 24%, from a year ago; NPLs up $15 million, or 6%.
  • Down $146 million, or 12%, from the prior quarter; NPLs down $98 million, or 26%.
  • ACL to NPLs coverage ratio increased to 75.90% in Q1 from 58.99% in the prior quarter.
• Share repurchases: Approximately 1.3 million shares repurchased in Q1 for $60.0 million.

Notable items that impacted results:

The following table presents notable items, on a pre-tax basis, that impacted results for the periods presented (in thousands):

Net Interest Income & Margin

• NIM and net interest income are typically seasonally lower in the first quarter of the year; however NIM was up 18 bps and net interest income was up $16 million compared to Q1 2025.
• NIM and net interest income were down compared to prior quarter primarily due to:
  • Variable rate assets repriced faster than continued improvement in funding cost and funding mix dynamics—Asset yields were further impacted by lower SOFR/Fed funds basis.
  • Seasonal decline in NIDDA throughout the quarter increased reliance on higher‑cost wholesale funding, including brokered deposits.

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 declined from prior quarter, primarily reflecting lower capital markets revenue.
• Non-interest income increased compared to Q1 2025, primarily as a result of a $3.3 million gain on sale of investment securities in Q1 2026.
• Non-interest expense was largely flat quarter over quarter when adjusted for the notable items summarized on Page 1.
• Non-interest expense increased compared to Q1 2025, primarily due to higher employee compensation and benefits.

• Total Assets were $35.4 billion at March 31, 2026.
• The balance sheet reflected an improved funding mix and ample liquidity.
• Non-brokered deposits increased from both prior quarter and a year ago, supporting reduction in higher-cost wholesale funding.
• Wholesale funding declined from both prior quarter and a year ago, reflecting continued balance-sheet repositioning.
• NIDDA represented 30% of total deposits at March 31, 2026.
• Loan balances remained stable overall, with growth in selected commercial portfolios offset by continued reductions in residential balances.

Loans

Loan portfolio composition at the dates indicated follows (dollars in thousands):

• Loan balances during the quarter reflected modest commercial activity, consistent with typical first-quarter seasonality.
• CRE and MWL increased by $76 million and $77 million, respectively, during the quarter, reflecting activity across selected lending segments.
• C&I declined by $144 million reflecting seasonal patterns, as commercial production is typically lower in the first quarter.
• Residential loan balances continued to decline, consistent with balance-sheet strategy.
• Compared to a year ago, the loan portfolio continued to reflect a shift toward commercial lending, driven by a $906 million increase in core commercial loan balances and lower residential balances.

Deposits & Borrowings

• The Company's funding profile continued to improve during the quarter, driven by growth in non-brokered deposits and reduction in wholesale funding.
• Non-brokered deposits increased $277 million from prior quarter and $1.4 billion from a year ago.
• Wholesale Funding declined by $70 million from prior quarter and $749 million from a year ago.
• NIDDA Represents 30% of total deposits at March 31, 2026.
• NIDDA declined from the prior quarter, however, balances were significantly higher compared to a year ago, supporting continued improvement in the Company's funding profile.
• Deposit pricing continued to improve, contributing to lower funding costs.
  • Average Cost of Deposits: Declined 0.06% to 2.12%; spot APY fell to 2.09% from 2.10% for the prior quarter.

Credit quality & Allowance for credit losses

Credit Quality

Credit quality metrics improved during Q1, as non-performing loans and criticized and classified loans declined from the prior quarter. Annualized net charge offs were elevated, attributable to two loans in unrelated industries and geographies.

• Criticized and Classified Loans: Declined $146 million, or 12%, in Q1,
• Non-Performing Loans: Down $98 million, or 26%, from prior quarter,
• NPA Ratio: 0.79%, including 0.10% related to guaranteed portion of SBA loans, down from 1.08%, including 0.11% related to SBA, in prior quarter.
• Net Charge-offs for the trailing twelve months: 0.37% for Q1, from 0.30% from the prior quarter.

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 net charge-offs, higher specific reserves, and improved asset quality. The following tables summarize the ACL, key coverage metrics, and changes across the periods presented (dollars in thousands):

• The provision for credit losses totaled $24.6 million for the quarter, compared to $25.6 million for the prior quarter and $15.1 million for Q1 2025.
• The most significant factor impacting the provision during the quarter was an increase in specific reserves, primarily related to two C&I loans in unrelated industries.
• Net charge-offs also impacted the allowance, resulting in lower ACL balances compared to the prior quarter.
• While the ACL to total loans ratio declined modestly from the prior quarter, the ACL to non-performing loans coverage ratio increased to 75.90%, reflecting lower non-performing loan balances.

Capital, Liquidity & shareholder returns

Strong capital levels have created an ability to increase capital returns to shareholders

• CET1: 12.2%, down 10 bps from prior quarter.
• AOCI declined by $13.5 million from prior quarter primarily due to an increase in unrealized losses on investment securities available for sale.
• Tangible Common Equity Ratio: 8.3%, down from Q4 2025, but up from Q1 2025.
• Tangible Book Value per Share: $40.05⁵, representing 7% year-over-year growth.
• Share Repurchases: Approximately 1.3 million shares repurchased in Q1 for $60.0 million, at an average price of $46.15.
• The Company's Board of Directors authorized the following capital actions:
  • An increase of $0.02 per share in the Company's common stock dividends to $0.33 per common share, a 6% increase from the Company's previous level of $0.31 per share.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Wednesday, April 22, 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/10207389/10388909cc4. 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 $35.4 billion at March 31, 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 but not limited to adverse events or conditions impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, the Company's actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 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).

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.

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. 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 tables reconciles these non-GAAP financial measurement to the comparable GAAP financial measurements at the dates and for the periods indicated (in thousands except share and per share data):

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BankUnited, Inc.

Investor Relations:

James G. Mackey, 305-231-6793