BankUnited Announces First-Quarter Results for Fiscal 2008

BankUnited Financial Corporation (NASDAQ:BKUNA), parent company of BankUnited FSB, today reported a loss of $25.5 million, or $0.73 per diluted share, for the quarter ended Dec. 31, 2007, compared to earnings of $27.4 million, or $0.71 per diluted share, for the quarter ended Dec. 31, 2006. BankUnited recorded a $65 million provision for loan losses. Excluding the provision, operating earnings were $17.3 million. "Clearly, we are disappointed with this quarter’s loss,” said Alfred R. Camner, BankUnited’s chairman and chief executive officer. "The extraordinary deterioration of the housing and mortgage markets and overall instability in the economy continue to impact financial services companies, and we do not anticipate a recovery of the housing market in the near term. "Although net-charge offs for the quarter were a modest $6 million, we recorded a $65 million provision, which we deemed as a prudent step given market conditions and the anticipation of rising non-performing assets. This provision increased our allowance for loan losses to $118 million, or 0.93% of our total loan portfolio. "This provision, together with actions we are taking now, should better position and strengthen the company for the future.” Repositioning the Company "Our management team is developing a strategic plan that will transition BankUnited to a retail commercial bank with the goals of improving shareholder return while maintaining a well-capitalized business model,” Camner added. "This program is already underway, and we intend to announce the initiatives in the very near future. "We have taken some immediate steps, including Reducing the size of the balance sheet, thereby bolstering capital ratios Significantly downsizing the wholesale residential business Continuing to strengthen our risk management programs Launching a major expense-cutting program.” Strengthening Capital and Shrinking the Balance Sheet Continued Camner, "We anticipate that our liquidity and strong capital structure should be more than sufficient to carry the company through this difficult economic environment. During the quarter, we began to reduce the size of the balance sheet, thereby bolstering capital ratios. We are shrinking our residential loan balances by lowering production and shifting to more saleable product. This product mix change supports our decision to shrink the balance sheet so that we will relieve pressure on capital and boost capital ratios. "BankUnited continues to maintain a strong capital position in excess of regulatory requirements. Core and risk-based capital ratios were 8.1% and 15.7%, respectively, at Dec. 31, 2007, and we plan to maintain capital levels in excess of the regulatory well-capitalized level. "Additional tangible equity support will be provided by the mandatory conversion of our $184 million HiMEDS equity units to common equity in May 2010, at a minimum price of $23.40 per share. "While the company remains confident in its current capital position and the improvements due to balance sheet shrinkage and the HiMEDS conversion, we may determine to raise additional capital should conditions call for it.” Wholesale Residential "We have made a strategic decision to significantly reduce our wholesale residential mortgage business,” Camner said. "Today, we closed four of our nine sales offices, which were located in Arizona, California, Colorado and Oregon. In addition, we have consolidated our nine operations centers to three, which will provide the company with greater efficiencies. "In total, we have reduced our wholesale residential staff by more than 45% and significantly cut our annualized run rate of expenses. We have also changed our product mix, producing a higher proportion of saleable product, mainly conforming agency and other conduits. "Going forward, wholesale lending will remain a part of our business, although in a smaller capacity. Its size and growth will be determined by the profitability models installed in the first fiscal quarter.” Credit Standards "BankUnited has adhered to conservative underwriting standards,” Camner explained. "Our guidelines have been substantially consistent with the inter-agency lending guidelines since long before their issuance in September 2006. We are not a subprime lender, and we do not engage in piggybacking in which a borrower is made a second mortgage simultaneously with a first mortgage. And, unlike others in the industry, we have underwritten to the fully indexed rate and followed strict policies for outside appraisals combined with internal appraisal reviews conducted by our own staff. "Reduced documentation loans undergo a reasonableness test on income. In almost all circumstances, loans originated with loan-to-value ratios (LTVs) over 80% require the purchase of mortgage insurance. Several years ago, we began to restrict the number of residential loans for luxury high-rise condos, including those located in downtown Miami. Additionally, the company has not been involved in any construction lending for these high-rise condos. ”We have been very proactive in addressing the rise in non-performing assets and have strengthened our risk management programs accordingly. We remain focused on managing exposure to the loans that we deem to be most at risk.” Expense-Cutting Program Camner continued, "Downsizing the wholesale residential business will have a positive impact on expenses, excluding one-time charges. The company’s budgeted expenses for fiscal 2008 are targeted well below fiscal 2007 levels, excluding the expenses related to other real estate owned. "The changes we implement as a result of our strategic plan complemented by the expense reduction programs we have initiated are expected to have a more tangible effect in future quarters.” Commentary from the Chief Operating Officer Ramiro Ortiz, BankUnited’s president and chief operating officer, added, "We will maintain our focus on improving our business processes while cutting expenses. In addition, we will concentrate resources on our core business areas. Deposit growth remains strong, and we continue to see growth in core deposits. This affirms our neighborhood banking strategy. "I am especially pleased with our continued success in the consumer lending, commercial lending, small-business banking and commercial real estate areas. Review of our internal measurements in cross-sell and retention benchmarks show that we continue to deepen relationships with our customers.” First-Quarter 2008 Results Asset Quality Net charge-offs for the quarter ended Dec. 31, 2007, remained low at $6.0 million, or an annualized rate of 0.19% of average loans, compared to $5.6 million, or an annualized rate of 0.18% for the quarter ended Sept. 30, 2007. Residential and consumer residential net-charge offs in the first quarter were $5.4 million, net of $2.2 million in estimated recoveries from mortgage insurance. Commercial and commercial real estate net-charge offs were $498,000. The ratio of non-performing assets as a percentage of total assets increased to 2.99% at Dec. 31, 2007, up from 1.39% at Sept. 30, 2007. The allowance for loan loss was $117.7 million at Dec. 31, 2007, compared to $58.6 million at Sept. 30, 2007, and $39.2 million at Dec. 31, 2006. The allowance for loan losses as a percentage of total loan portfolio was 0.93% at Dec. 31, 2007, compared to 0.46% at Sept. 30, 2007, and 0.34% at Dec. 31, 2006. Loan Production and Balances The total loan portfolio was $12.6 billion at Dec. 31, 2007, compared to $12.6 billion at Sept. 30, 2007, and $11.6 billion at Dec. 31, 2006. Commercial and commercial real estate loan balances increased to $1.3 billion at Dec. 31, 2007, up 10% from Dec. 31, 2006. Consumer loan balances, which include specialty consumer mortgage loans originated through branch offices, increased to $1.2 billion at Dec. 31, 2007, up 7% from $1.1 billion at Dec. 31, 2006. Residential mortgage loan originations, which exclude specialty consumer mortgage loans originated through branch offices, were $519 million for the quarter, down 55% from the quarter ended Dec. 31, 2006. As of Dec. 31, 2007, BankUnited’s option-ARM balances totaled $7.5 billion, which represented 70% of total residential loans and 59% of total loans. For the quarter ended Dec. 31, 2007, the growth in negative amortization was $47 million, compared to $48 million for the quarter ended Sept. 30, 2007. Of the $7.5 billion in option-ARM balances, $6.9 billion had negative amortization of $317 million, or 4.2%, of the option-ARM portfolio. In almost all circumstances, loans originated with LTV ratios greater than 80% require the purchase of mortgage insurance. With the adjustment for coverage of mortgage insurance, the average LTV of the residential portfolio at inception was 74.7%. The average outstanding balance of a residential loan in the portfolio as of Dec. 31, 2007, was $290,000. Net-Interest Margin Net-interest margin for the quarter ended Dec. 31, 2007, was 2.12%, compared to 2.30% for the preceding quarter, and 2.35% for the same quarter last year. In periods of declining interest rates, the Monthly Treasury Average (MTA) Index will lag the decline in general rates as well as the bank’s funding rates. However, BankUnited expects its margin will be adversely impacted by the effects of increasing non-performing assets. Expenses and Efficiency Ratio Non-interest expense increased $834,000 for the quarter ended Dec. 31, 2007, to $55.0 million, up 1.5% from $54.2 million in the quarter ended Sept. 30, 2007, and 22% from $45.0 million for the quarter ended Dec. 31, 2006. The efficiency ratio for the quarter was 68.12%, compared to 49.84% for the same quarter last year. Book Value Book value per common share was $21.52 as of Dec. 31, 2007, up from $21.08 at Dec. 31, 2006. Deposit Growth Total deposits increased 14% to $7.1 billion at Dec. 31, 2007, up from $6.3 billion at Dec. 31, 2006. Core deposits increased to $5.1 billion at Dec. 31, 2007, up 13% from Dec. 31, 2006. Non-interest-bearing deposits decreased to $311 million at Dec. 31, 2007, down 16% from Dec. 31, 2006. Non-Interest Income Total non-interest income was $6.6 million for the quarter ended Dec. 31, 2007, down 43% from the quarter ended Dec. 31, 2006. Fee income, which includes loan fees, deposit fees and other fees (excluding loan-servicing fees), was $3.3 million for the first quarter of fiscal 2008, up 2% from the first quarter of fiscal 2007. Gain on sale of assets, including loans and securities, totaled $2.3 million for the quarter ended Dec. 31, 2007, compared to $5.6 million for the quarter ended Dec. 31, 2006. BankUnited sold $379 million of residential mortgage loans during the quarter ended Dec. 31, 2007, for a gain of $2.3 million, compared to sales of $545 million of residential mortgage loans for a gain of $5.6 million for the quarter ended Dec. 31, 2006. Existing residential mortgage operations support the origination and sale of conforming loans to the secondary market. The first-quarter gain resulted from the sale of conforming loans and traditional-ARM loans. BankUnited’s portfolio of residential loans serviced for others was $1.9 billion at Dec. 31, 2007, compared to $1.5 billion at Dec. 31, 2006. Servicing fees, net of amortization, were $560,000 for the first quarter of fiscal 2008, compared to $1.1 million for the first quarter of fiscal 2007. In addition, during the first quarter of fiscal 2008, BankUnited recorded an impairment charge of $2.6 million based on valuations of the servicing portfolio by independent third parties. Dividends on Class A Common Stock During the first quarter, BankUnited's board of directors declared and paid its twelfth consecutive quarterly cash dividend of one-half cent ($0.005) per share of its Class A Common Stock. BankUnited anticipates that it will continue to declare and pay such dividends on a quarterly basis, subject to termination at any time at the sole discretion of the board. About BankUnited BankUnited Financial Corp. is the holding company for BankUnited FSB, the largest banking institution headquartered in Florida. At Dec. 31, 2007, BankUnited had assets of $14.4 billion. Serving customers through 86 branches in 13 coastal counties, including Miami-Dade, Broward, Palm Beach, Martin, St. Lucie, Collier, Charlotte, Manatee, Hillsborough, Sarasota, Lee, Indian River and Pinellas, BankUnited offers a full spectrum of consumer and commercial banking products and services, including online products that can be accessed through http://www.bankunited.com. For additional information, call 877-779-2265. A conference call to discuss the quarter’s financial results will be held at 4:30 p.m. EST today with Chairman and Chief Executive Officer Alfred R. Camner, President and Chief Operating Officer Ramiro Ortiz, Chief Financial Officer Bert Lopez and Senior Executive Vice President of Corporate Finance James Foster. Presentation materials will be available on the company’s website at 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 888-300-2666 (domestic) or 706-902-0105 (international). The call leader is Alfred R. Camner. The name of the call is BankUnited, and the access code for the call is 32008550. A replay of the call will be available from 8:00 p.m. EDT on Jan. 24 through 11:55 p.m. EST on Jan. 31 by calling toll-free 800-642-1687 (domestic) or 706-645-9291 (international). The pass code for the replay is 32008550. Forward-Looking Statements This press release and the presentation to which it refers may contain certain forward-looking statements, which are based on management's expectations regarding factors that may impact the company's earnings and performance in future periods. Words and phrases such as: "will likely result," "expect," "will continue," "anticipate," "estimate," "project," "believe," "intend," "should," "would,” "may," "can," "could," "plan," "target" and similar expressions are intended to identify "forward-looking statements." Actual results or performance could differ from those implied or contemplated by such statements. Factors that could cause future results and performance to differ materially from current management expectations include, but are not limited to, general business and economic conditions, either nationally or regionally; fiscal or monetary policies; significant weather events such as hurricanes; changes or fluctuations in the interest rate environment; a deterioration in credit quality and/or a reduced demand for credit; reduced deposit flows and loan demand; real estate values; competition from other financial service companies in our markets; servicing capacity; legislative or regulatory changes, including, among others, changes in accounting standards, guidelines and policies; the issuance or redemption of additional Company debt or equity; the concentration of operations in Florida, if Florida business or economic conditions decline; reliance on other companies for products and services; the impact of war and the threat and impact of terrorism; volatility in the market price of the Company’s common stock; and other economic, competitive, governmental, regulatory and technological factors affecting the Company’s operations, price, products and delivery of services. Please refer to the documents that BankUnited Financial Corporation files periodically with the SEC, such as the Form 10-K, Form 10-Q and Form 8-K, which contain additional important factors that could cause its actual results to differ from its current expectations and from the forward-looking statements contained in this presentation. BankUnited Financial Corporation Quarter Ended December 31, 2007 Earnings Release   For the Three Months Ended     Dec 31,   Sep 30,   Dec 31, Operations Data:     2007       2007       2006       Interest Income: Interest and fees on loans $ 219,898 $ 227,906 $ 211,815 Interest on mortgage-backed securities 11,616 11,533 13,770 Interest and dividends on investments and other interest earning assets   7,730       8,589       8,244   Total Interest Income 239,244 248,028 233,829 Interest on deposits 80,763 82,871 67,719 Interest on borrowings 79,574 80,066 82,272 Interest on trust preferred securities and subordinate debentures   4,748       4,613       5,043   Total Interest Expense   165,085       167,550       155,034   Net Interest Income 74,159 80,478 78,795 Provision for loan losses   65,000       19,100       4,000   Net interest Income after provision for loan losses 9,159 61,378 74,795     Loan servicing fees, net of amortization 560 786 1,089 Impairment of mortgage servicing rights (2,634 ) (329 ) (832 ) Loan fees 1,038 1,588 1,074 Deposit fees 1,597 1,472 1,474 Other fees 663 705 672 Gain on sales of loans, securities, and other assets (1) 2,270 178 5,639 Insurance and investment income 1,425 1,401 952 Loss on swaps 0 (10 ) (196 ) Other income   1,699       (3,226 )     1,718   Total Other Income 6,618 2,565 11,590     Other Expenses: Employee compensation 27,561 26,123 24,286 Occupancy & Equipment 10,471 11,161 8,555 Professional fees 3,515 1,925 1,617 Telecommunications and data processing 3,337 3,558 2,830 Advertising and promotion expense 1,664 2,054 1,775 Other operating expenses   8,475       9,368       5,984   Total Other Expenses   55,023       54,189       45,047     Income before income taxes (39,247 ) 9,754 41,338 Provision for income taxes   (13,743 )     3,356       13,970   Net Income $ (25,504 )   $ 6,398     $ 27,368       Earnings Per Share Data: Net Income $ (25,504 ) $ 6,398 $ 27,368 Preferred stock dividends   151       141       135   Net income available to common stockholders $ (25,655 )   $ 6,257     $ 27,233             Basic earnings per common share $ (0.73 )   $ 0.18     $ 0.75             Weighted average common share outstanding   35,102       35,089       36,390             Diluted earnings per common share $ (0.73 )   $ 0.17     $ 0.71             Weighted average diluted common shares outstanding   35,102       36,767       38,339       For the Three Months Ended (1) Consists of the following: Dec 31,   Sep 30,   Dec 31,   2007       2007       2006   Gain on sales of investments and mortgage-backed securities $ - $ - $ 43 Gain on sales of loans and other assets $ 2,270 $ 178 $ 5,596 BankUnited Financial Corporation Quarter Ended December 31, 2007 Earnings Release     As of     Dec 31,   Sep 30,   Dec 31, PERIOD END BALANCE SHEET DATA     2007       2007       2006   (In Thousands)         Asset Data: Total Assets $ 14,425,258 $ 15,046,271 $ 13,810,716 Cash and cash equivalents $ 73,704 $ 512,935 $ 112,957 Investment securities $ 160,405 $ 187,375 $ 267,417 Mortgage-backed securities $ 843,269 $ 916,223 $ 1,144,696 Residential loans $ 9,918,130 $ 9,996,086 $ 9,114,076 Specialty consumer mortgages 705,799 697,726 681,638 Commercial Loans 191,224 187,951 186,618 Multi Family 134,173 120,058 88,605 Commercial Real Estate Loans 509,509 496,556 432,108 Construction 156,356 146,557 149,616 Land 308,890 303,294 329,038 Consumer loans 17,813 16,228 18,497 Home Equity loans and Lines of Credit 435,936 420,386 381,820   Unearned discounts, premiums and loan fees 231,832 235,454 205,762 Allowance for loan losses   (117,658 )   (58,623 )   (39,192 ) Loans receivable, net (excluding loans held for sale) $ 12,492,004   $ 12,561,673   $ 11,548,586   Loans held for sale $ 150,470 $ 174,868 $ 117,165 FHLB Stock $ 281,310 $ 305,385 $ 283,017   Liability Data: Total Liabilities $ 13,648,819 $ 14,234,305 $ 13,028,748 Deposits: Non-interest bearing deposits $ 311,046 $ 342,499 $ 371,833 Interest bearing checking and money market deposits 658,995 599,454 454,815 Savings 1,513,908 1,607,414 1,358,330 Certificates of deposit $100,000 and less   2,629,766     2,546,108     2,357,241   Total core deposits 5,113,715 5,095,475 4,542,219 Certificates of deposit over $100,000   2,027,131     1,994,913     1,748,080   Total deposits $ 7,140,846   $ 7,090,388   $ 6,290,299     Other borrowings $ 5,834,058 $ 6,377,422 $ 6,238,366 HiMEDS Units senior notes $ 184,000 $ 184,000 $ - Convertible senior notes $ 120,000 $ 120,000 $ 120,000 Trust preferred securities and subordinated debentures $ 237,261 $ 237,261 $ 247,255 Junior Subordinated $ 12,500 $ 12,500 $ -   Equity Data: Total stockholders' equity $ 776,439 $ 811,966 $ 781,968 Preferred equity $ 9,131 $ 8,146 $ 8,042       As of     Dec 31,   Sep 30,   Dec 31, AVERAGE BALANCE SHEET DATA     2007       2007       2006     Asset Data: Total Assets $ 14,587,855 $ 14,591,572 $ 13,920,511 Cash and cash equivalents $ 135,564 $ 199,459 $ 63,824 Investment securities $ 169,330 $ 186,830 $ 282,938 Mortgage-backed securities $ 887,515 $ 951,431 $ 1,195,422 Loans: Residential loans $ 9,937,934 $ 9,926,698 $ 9,072,259 Specialty consumer mortgages 699,011 691,123 691,035 Commercial Loans 185,156 182,610 187,692 Multi Family 123,117 116,689 86,393 Commercial Real Estate Loans 502,155 487,488 422,681 Construction 152,143 141,493 159,868 Land 303,439 306,845 338,198 Consumer loans 17,228 17,558 19,279 Home Equity loans and Lines of Credit 428,781 413,668 367,352   Unearned discounts, premiums and loan fees 233,733 233,227 208,897 Allowance for loan losses   (62,551 )   (46,257 )   (37,209 ) Loans receivable, net (excluding loans held for sale) $ 12,520,146   $ 12,471,142   $ 11,516,445   Loans held for sale $ 189,682 $ 137,629 $ 265,849 FHLB Stock $ 288,696 $ 282,416 $ 278,692 Interest Earning Assets $ 14,150,270 $ 14,175,338 $ 13,578,345   Liability Data: Total Liabilities $ 13,775,729 $ 13,774,871 $ 13,146,672 Deposits: Non-interest bearing deposits $ 330,970 $ 341,135 $ 380,221 Interest bearing checking and money market deposits 629,718 574,312 440,774 Savings 1,537,840 1,580,527 1,334,737 Certificates of deposit   4,515,640     4,578,392     3,987,584   Total interest bearing deposits $ 6,683,198   $ 6,733,230   $ 5,763,095     Other borrowings $ 6,006,050 $ 5,939,732 $ 6,458,770 HiMEDS Units senior notes $ 184,000 $ 184,000 $ - Convertible senior notes $ 120,000 $ 120,000 $ 120,000 Trust preferred securities and subordinated debentures $ 237,261 $ 230,453 $ 246,183 Junior Subordinated $ 12,500 $ 408 $ - Interest-bearing liabilities $ 13,243,009 $ 13,207,824 $ 12,588,048   Equity Data: Total stockholders' equity   $ 812,126     $ 816,701     $ 773,839   BankUnited Financial Corporation Quarter Ended December 31, 2007 Earnings Release   For the Three Months Ended     Dec 31,   Sep 30,   Dec 31, Selected Data:     2007       2007       2006       Quarterly Performing Data: Return on average tangible common equity -13.25 % 3.21 % 14.77 % Return on average assets -0.70 % 0.18 % 0.79 % Yield on interest-earning assets 6.75 % 6.99 % 6.88 % Cost of interest-bearing liabilities 4.95 % 5.04 % 4.89 % Net interest yield on earning assets (margin) 2.12 % 2.30 % 2.35 % Net interest spread 1.80 % 1.95 % 1.99 % Efficiency Ratio 68.12 % 65.25 % 49.84 %     As of Dec 31,   Sep 30,   Dec 31,   2007       2007       2006   Equity Data: (dollars and shares in thousands, except per share amounts) Book value per common share $ 21.52 $ 22.71 $ 21.08 Book value per common share assuming full conversion of HiMed Units $ 23.05 $ 24.09 $ 21.08 Tangible book value per common share $ 20.72 $ 21.91 $ 20.30 Closing Price of Class A Common Stock $ 6.90 $ 15.54 $ 27.96 Common shares outstanding 35,661 35,388 36,720 Average equity to average assets (3 mos.) 5.57 % 5.60 % 5.56 %   Capital Ratios: Tangible capital ratio (1) 8.1 % 7.8 % 7.4 % Tier 1 core capital ratio (1) 8.1 % 7.8 % 7.4 % Total risk-based capital ratio (1) 15.7 % 15.4 % 14.5 %     Non-Performing Assets: Non-accrual loans $ 384,391 $ 180,810 $ 44,732 Loans 90 day past due and still accruing   35     23     0   Total non-performing loans 384,426 180,833 44,732 Real estate owned   46,909     27,732     413   Total non-performing assets $ 431,335   $ 208,565   $ 45,145     Allowance for loan losses $ 117,658 $ 58,623 $ 39,192   Non-performing assets to total assets 2.99 % 1.39 % 0.33 % Non-performing loans to total loans 3.05 % 1.43 % 0.39 % Allowance for loan losses as a percentage of total loans 0.93 % 0.46 % 0.34 % Allowance for loan losses as a percentage of non-performing loans 30.61 % 32.42 % 87.62 % Net residential & consumer residential charge-offs for the three months ended $ 5,428 $ 3,477 $ (1 ) Net residential annualized Q-T-D charge-offs as a percentage of average total loan portfolio 0.17 % 0.11 % 0.00 % Net charge-offs for the three months ended $ 5,965 $ 5,566 $ 1,186 Net annualized Q-T-D charge-offs as a percentage of average total loan portfolio 0.19 % 0.18 % 0.04 %   (1) Capital ratios are for BankUnited FSB only BankUnited Financial Corporation Quarter Ended December 30, 2007 Earnings Release (continued)     For the Three Months Ended         Dec 31,   Sep 30,   Dec 31,           2007       2007     2006 Reconciliation of GAAP to non-GAAP measures: (dollars and shares in thousands, except per share amounts)   Net income: GAAP net income $ (25,504 ) $ 6,398 $ 27,368 Plus: after-tax effect of provision for loan losses   42,770       Non-GAAP net income $ 17,266   $ 6,398 $ 27,368   Earnings per share: Basic Numerator GAAP net income available to common stockholders $ (25,655 ) $ 6,257 $ 27,233 Plus: after-tax effect of provision for loan losses $ 42,770       Non-GAAP net income available to common stockholders $ 17,115   $ 6,257 $ 27,233   Denominator GAAP weighted average common shares outstanding 35,102 35,089 36,390 Adjustment for non-GAAP measure   -     -   - Non-GAAP weighted average common shares outstanding   35,102     35,089   36,390     EPS GAAP basic earnings per share $ (0.73 ) $ 0.18 $ 0.75 Plus: after-tax effect of provision for loan losses   1.22     -   - Non-GAAP basic earnings per share $ 0.49   $ 0.18 $ 0.75   Diluted Numerator GAAP net income for diluted earnings per share $ (25,655 ) $ 6,257 $ 27,233 Plus: after-tax effect of provision for loan losses 42,770 - - add back from convertible stock dividends   151     141   135 Non-GAAP net income for diluted earnings per share $ 17,266   $ 6,398 $ 27,368   Denominator GAAP weighted average shares for diluted earnings per share 36,412 36,767 38,339 Adjustment for non-GAAP measure   -     -   - Non-GAAP weighted average shares for diluted earnings per share   36,412     36,767   38,339     EPS GAAP diluted earnings per share $ (0.73 ) $ 0.17 $ 0.71 Plus: after-tax effect of provision for loan losses   1.20     -   - Non-GAAP diluted earnings per share $ 0.47   $ 0.17 $ 0.71     Note: BankUnited believes earnings, not including provision for loan losses (the "Non-GAAP Measure”), provides useful information to investors for the performance of financial analysis. BankUnited uses the Non-GAAP Measures internally to execute its in-period financial operating performance and to plan for future periods. However, Non-GAAP Measures are neither stated in accordance with, nor are they a substitute for, GAAP measures. Residential Loan Portfolio (a) Period Ending December 31, 2007                       Attribute   FULL DOC EMPLOYMENT VERIFIED (b)   STATED INCOME / VERIFIED ASSETS EMPLOYMENT VERIFIED (b)   REDUCED DOC EMPLOYMENT VERIFIED (b)   NO DOC   Total           Total Portfolio 1,721,391 4,230,823 3,162,236 908,542 10,022,992   Pct. Of Portfolio 17 % 42 % 32 % 9 % 100 %   Wt Avg. FICO 703 708 708 719 709   Pct. With Mortgage Insurance 11 % 20 % 26 % 9 % 18 %   Wt. Avg LTV (After MI Adjustment)   74.4     75.2     74.2     74.6     74.7     (a) Total Residential Portfolio balance excludes unearned discounts, premiums, loan fees and other. (b) For these loans, employment is verified.