BankUnited Announces Fourth Quarter and Fiscal Year 2007 Results

BankUnited Financial Corporation (NASDAQ: BKUNA): Fiscal year 2007 net income of $81.4 million Total assets of $15.0 billion, up 11% from Sept. 30th last year Total deposits of $7.1 billion, up 17% from Sept. 30th last year Core deposits of $5.1 billion, up 16% from Sept. 30th last year BankUnited Financial Corporation (NASDAQ: BKUNA), parent of BankUnited FSB, today reported net income of $81.4 million for the fiscal year ended Sept. 30, 2007, compared to $83.9 million for the fiscal year ended Sept. 30, 2006. Diluted earnings per share for the 2007 fiscal year were $2.14, compared to $2.30 for the 2006 fiscal year. Excluding a $5.0 million pre-tax charge ($3.3 million after-tax), or $0.09 per diluted share, for other-than-temporary impairments on various investment securities, earnings were $84.7 million, or $2.23 per diluted share, for the fiscal year ended Sept. 30, 2007. Net income for the quarter ended Sept. 30, 2007, was $6.4 million, or $0.17, per diluted share, compared to $0.63 per share for the same quarter last year. Excluding the $5.0 million pre-tax charge ($3.3 million after-tax), or $0.09 per diluted share, for other-than-temporary impairments on various investment securities, earnings were $9.7 million, or $0.26 per diluted share, for the fourth quarter of fiscal 2007. "While we are pleased with our earnings for the fiscal year, we are disappointed with our fourth-quarter results,” said Alfred R. Camner, BankUnited’s chairman and chief executive officer. "It is clear that this difficult economic climate will continue. There is significant volatility in the markets, the housing sector is still in a downturn, and non-performing assets have not yet leveled off. However, we do have several things in our favor: our capital position is strong, we are a Florida-based banking franchise, and our net charge-offs remain manageable. "In our pre-release we reported a loan loss provision of $8 to $10 million. We have increased the provision to $19.1 million. This change is based on industry trends, including further difficulties in the housing markets, particularly in certain geographic areas that have been impacted by price decreases. "The environment will continue to be challenging. Succeeding in this type of downturn requires focus and experience – two of BankUnited’s management team’s strengths. Looking ahead, we will concentrate on achieving efficiencies in all of our business lines and absorbing the growth of the last two years. In addition, we will focus on managing delinquencies in our mortgage portfolio and implementing expense-control measures. We have built a strong Florida franchise complemented by a national mortgage lending operation, and we will continue to build upon this base.” Ramiro Ortiz, BankUnited’s president and chief operating officer, added, "In fiscal year 2007, our commercial and neighborhood-banking businesses continued to perform strongly. We showed double-digit-percentage increases in total and core deposits, and our small business and commercial banking areas continued to add lending and depository relationships. We look for all of our business lines to continue on a pace of moderate growth in the upcoming year. "We opened three branches in the fourth quarter and ten for the year, including entry into new markets in Indian River and Pinellas counties. According to June 30, 2007, FDIC information, BankUnited’s deposit market share in Florida grew 17%, and, for the second-consecutive year, our market share grew in Miami-Dade, Broward and Palm Beach counties. Our neighborhood-banking strategy continues to work, and our fees on loans and deposits increased more than 28%. We intend to add fewer branches in 2008 and focus on deepening relationships with customers in the markets we serve. "Wholesale lending has been an important part of BankUnited’s history, and we remain committed to this line of business. Wholesale, like every other area of our company, is focused on streamlining and refining processes in an effort to become more efficient. By focusing on the strategies that helped us grow the bank in the past, we will work our way through this difficult cycle.” Asset Quality Non-performing assets as a percentage of total assets increased to 1.39% at Sept. 30, 2007, from 0.86% at June 30, 2007, and from 0.16% at Sept. 30, 2006. Almost all of the increase in non-performing assets during the quarter was related to residential loans. Residential net charge-offs in the fourth quarter were $2.9 million, net of $1.2 million in estimated recoveries from mortgage insurance. Consumer loan net charge-offs in the fourth quarter were $619,000, and commercial portfolio net charge-offs were $2.1 million. Total net charge-offs for the quarter ended Sept. 30, 2007, were $5.6 million, net of estimated insurance recoveries, compared to net recoveries of $571,000 for the quarter ended Sept. 30, 2006. Net charge-offs for the commercial portfolio include the last remaining portion of a previously disclosed $3.0 million commercial real estate senior mezzanine loan. During the fourth quarter, the company converted the senior mezzanine loan to subordinated debt of the parent company, which resulted in a net charge of $1.8 million, which is included in the $2.1 million in net charge-offs related to the commercial loan portfolio. For fiscal 2007, net charge-offs related to the residential portfolio were $4.0 million, net of $1.2 million in estimated recoveries from mortgage insurance. Total net charge-offs for fiscal 2007 were $9.3 million, net of estimated insurance recoveries. This represents 0.03% and 0.08% of average annual loans, respectively. At Sept. 30, 2007, BankUnited had 541 loans in foreclosure, which represents 1.5% of the company’s 35,188 residential loans. Based on recent appraisals, the current weighted average loan-to-value of the loans in foreclosure as of Sept. 30, 2007, was approximately 86%, including the effects of mortgage insurance. For the quarter ended Sept. 30, 2007, the provision for loan loss totaled $19.1 million, compared to $4.6 million for the quarter ended Sept. 30, 2006. The allowance for loan loss was $58.6 million at Sept. 30, 2007, compared to $36.4 million at Sept. 30, 2006. The allowance for loan losses as a percentage of total loans was 0.46% as of Sept. 30, 2007, compared to 0.32% as of Sept. 30, 2006, and 0.37% as of June 30, 2007. Capital Ratios and Book Value BankUnited FSB continues to maintain its strong capital position in excess of regulatory requirements. Core and risk-based capital ratios were 7.8% and 15.4%, respectively, at Sept. 30, 2007. During fiscal 2007, the company raised $184 million through the sale of 3,680,000, 6.75% HiMEDS equity units, which mandatorily convert to common equity in May 2010 at a maximum price of $32.76. During the quarter, BankUnited repurchased 315,413 shares of its Class A Common Stock. For fiscal year 2007, BankUnited repurchased 1,738,295 shares of its Class A Common Stock. Book value per common share was $22.71 as of Sept. 30, 2007, up from $20.34 at Sept. 30, 2006. Net-Interest Margin Net-interest margin for the quarter ended Sept. 30, 2007, was 2.30%, compared to 2.40% for the preceding quarter, and 2.26% for the same quarter last year. While the core business margin did increase slightly, it was offset by the carrying cost of the non-performing assets. Net-interest margin for the fiscal year was 2.36%, up from 2.13% for the 2006 fiscal year. Deposit Growth Total deposits increased 17% to $7.1 billion at Sept. 30, 2007, up from $6.1 billion at Sept. 30, 2006. Core deposits increased to $5.1 billion at Sept. 30, 2007, up 16% from Sept. 30, 2006. Non-interest-bearing deposits decreased to $342 million at Sept. 30, 2007, down 13% from Sept. 30, 2006. According to a report issued by the FDIC, BankUnited had deposit market share in Florida of 1.94% as of June 30, 2007, up from 1.66% at June 30, 2006. Loan Production and Balances Total loan originations for the quarter were $1.0 billion, down 39.7% from the same quarter last year. Total loan originations for the 2007 fiscal year were $4.6 billion, down 32.2% from the 2006 fiscal year. After loan sales and repayments, the total net loan portfolio was $12.6 billion at Sept. 30, 2007, compared to $12.3 billion at June 30, 2007, and $11.4 billion at Sept. 30, 2006. Commercial and commercial real estate loan balances increased to $1.2 billion at Sept. 30, 2007, up 4% from Sept. 30, 2006. Consumer loan balances, which include specialty consumer mortgage loans originated through branch offices, increased at Sept. 30, 2007, by 6% from $1.1 billion at Sept. 30, 2006. Reflecting current market conditions, residential mortgage loan originations, which exclude specialty consumer mortgage loans originated through branch offices, were $818 million for the quarter, down 45% from the quarter ended Sept. 30, 2006. For the quarter, the monthly option-ARM represented only 24% of the company’s portfolio production, and newer mortgage loan products represented 76% of the company’s portfolio production. For the 2007 fiscal year, residential mortgage loan originations were $3.8 billion, down 32.8% from the 2006 fiscal year. Residential mortgage loan balances increased 11% to $10.0 billion at Sept. 30, 2007, from $9.0 billion at Sept. 30, 2006. As of Sept. 30, 2007, BankUnited’s option-ARM balances totaled $7.6 billion, which represented 70% of the residential loan portfolio and 60% of the total loan portfolio. For the quarter ended Sept. 30, 2007, the growth in negative amortization was $48 million, compared to $46.4 million for the quarter ended June 30, 2007. Of the $7.6 billion in option-ARM balances, $6.5 billion had negative amortization of $270 million, or 3.55%, of the option-ARM portfolio. In almost all circumstances, loans originated with loan-to-value (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 74.3%. The average outstanding balance of a residential loan in the portfolio as of Sept. 30, 2007, was $287,000. Non-Interest Income Total non-interest income, which includes the $5.0 million pre-tax charge ($3.3 million after-tax), for other-than-temporary impairments on the various investment securities previously mentioned, was $2.6 million for the fourth quarter of 2007, down $7.6 million, or 75%, from the same quarter last year. For the 2007 fiscal year, total non-interest income was $32.6 million, down $3.0 million, or 9%, from the 2006 fiscal year. Fee income, which includes loan fees, deposit fees and other fees (excluding loan-servicing fees), was $3.8 million for the fourth quarter of fiscal 2007, up 28% from the fourth quarter of fiscal 2006. Fee income for the 2007 fiscal year was $14.1 million, up 21% over the 2006 fiscal year. Gain on sale of assets, including loans and securities, totaled $178,000 for the fourth quarter of 2007, compared to $4.5 million for the same quarter of fiscal 2006. Gain on sale of assets, including loans and securities, totaled $9.2 million for the 2007 fiscal year, compared to $13.3 million for the 2006 fiscal year. BankUnited sold $221 million of residential mortgage loans during the quarter ended Sept. 30, 2007, for a gain of $225,000, net of hedging activity, compared to sales of $470 million of residential mortgage loans, for a gain of $4.6 million, for the quarter ended Sept. 30, 2006. The fourth-quarter gain resulted from the sale of conforming loans and traditional-ARM loans. BankUnited sold $1.2 billion of residential mortgage loans during the 2007 fiscal year for a gain of $9.8 million, net of hedging activity, compared to a gain of $13.4 million on loan sales for the 2006 fiscal year. BankUnited’s portfolio of residential loans serviced for others was $1.6 billion at Sept. 30, 2007, compared to $1.6 billion at Sept. 30, 2006. Servicing fees, net of amortization, were $785,000 for the fourth quarter of fiscal 2007, compared to $1.1 million for the fourth quarter of fiscal 2006. For fiscal 2007, servicing fees net of amortization were $3.7 million, compared to $3.5 million for fiscal 2006. BankUnited booked an impairment charge of $329,000 for the fourth quarter of fiscal 2007 and $1.3 million for fiscal year 2007, based on valuations of the servicing portfolio by independent third parties. Expenses and Efficiency Ratio Non-interest expense increased $3.7 million for the fourth quarter of 2007 to $54.2 million, up 7% from $50.5 million in the third quarter of fiscal 2007 and 28% from $42.2 million for the same quarter of fiscal 2006. Non-interest expense increased $50.9 million for the 2007 fiscal year, up 34% from $150.2 million in the 2006 fiscal year. While BankUnited opened 10 new branches in fiscal year 2007, the company anticipates opening only two branches in fiscal year 2008. Contributing to the higher expenses incurred in the fourth quarter were higher occupancy and equipment related to the aforementioned expansion of the branch network and related infrastructure. Additional expenses incurred during the fourth quarter included those associated with decreased mortgage-loan production and pipeline management as well as costs related to default administration. The efficiency ratio for the quarter was 65.25%, compared to 51.02% for the same quarter last year. The efficiency ratio for the 2007 fiscal year was 56.44%, compared to 52.49% for the 2006 fiscal year. Excluding the $5.0 million pre-tax charge ($3.3 million after-tax) for other-than-temporary impairments on the various investment securities previously mentioned, the efficiency ratio was 61.52% for the fourth quarter of fiscal 2007 and 55.65% for fiscal year 2007. Dividends on Class A Common Stock During the fourth quarter, BankUnited's board of directors declared and paid its eleventh 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 Sept. 30, 2007, BankUnited had assets of $15.0 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 earnings for the quarter will be held at 2 p.m. EDT 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. 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 19336920. A replay of the call will be available from 5:30 p.m. EDT on Oct. 23 through 11:59 p.m. EDT on Oct. 30 by calling toll-free (800) 642-1687 (domestic) or (706) 645-9291 (international). The pass code for the replay is 19336920. Forward-Looking Statements This press release 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 materially from current management expectations included, 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; 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, servicing capacity, 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 press release.   BankUnited Financial Corporation Quarter Ended Sept. 30, 2007, Earnings Release   For the Three Months Ended For the Twelve Months Ended     Sept. 30,   June 30,   Sept. 30,   Sept. 30, Operations Data:   2007     2007   2006   2007     2006         Interest Income: Interest and fees on loans $ 227,906 $ 220,886 $ 193,160 $ 876,847 $ 623,792 Interest on mortgage-backed securities 11,533 12,071 14,335 50,711 62,378 Interest and dividends on investments and other interest earning assets 8,589   7,113   7,749   31,411   27,339   Total Interest Income 248,028 240,071 215,244 958,970 713,508 Interest Expense: Interest on deposits 82,871 77,405 61,820 302,335 199,970 Interest on borrowings 80,066 75,613 76,714 312,489 247,396 Interest on trust preferred securities and subordinate debentures 4,613   5,074   4,129   20,552   15,700   Total Interest Expense 167,550   158,092   142,663   635,378   463,066   Net Interest Income 80,478 81,979 72,581 323,593 250,442 Provision for loan losses 19,100   4,400   4,600   31,500   10,400   Net interest Income after provision for loan losses 61,378 77,579 67,981 292,093 240,042     Other Income: Loan servicing fees, net of amortization 786 824 1,131 3,670 3,545 Impairment of mortgage servicing rights (329 ) 0 (166 ) (1,293 ) (1,036 ) Loan fees 1,588 1,387 906 5,315 3,407 Deposit fees 1,472 1,447 1,318 5,903 5,348 Other fees 705 759 726 2,832 2,868 Gain on sales of loans, securities, and other assets (1) 178 505 4,536 9,228 13,271 Insurance and investment income 1,401 1,687 581 5,360 3,720 Loss on swaps (10 ) 0 (192 ) (327 ) (1,657 ) Other income (3,226 ) 1,731   1,275   1,959   6,228   Total Other Income 2,565 8,340 10,115 32,647 35,694     Other Expenses: Employee compensation 26,123 26,283 21,128 103,244 76,211 Occupancy & Equipment 11,161 9,735 8,598 39,003 29,572 Professional fees 1,925 1,984 1,860 7,368 6,506 Telecommunications and data processing 3,558 3,248 3,024 12,569 10,192 Advertising and promotion expense 2,054 2,317 1,864 8,389 6,945 Other operating expenses 9,367   6,929   5,719   30,486   20,767   Total Other Expenses 54,188   50,496   42,193   201,059   150,193     Income before income taxes 9,755 35,423 35,903 123,682 125,543 Provision for income taxes 3,357   12,214   11,716   $ 42,302   $ 41,668   Net Income $ 6,398   $ 23,209   $ 24,188   $ 81,380   $ 83,875         Earnings Per Share Data: Net Income $ 6,398 $ 23,209 $ 24,188 $ 81,380 $ 83,875 Preferred stock dividends 141   133   118   $ 541   $ 473   Net income available to common stockholders $ 6,256     $ 23,076   $ 24,070   $ 80,839   $ 83,402                       Basic earnings per common share: $ 0.18   $ 0.65   $ 0.66   $ 2.25   $ 2.43                       Weighted average common share outstanding 35,089   35,779   36,379   35,876   34,297                       Diluted earnings per common share: $ 0.17   $ 0.62   $ 0.63   $ 2.14   $ 2.30                       Weighted average diluted common shares outstanding 36,767   37,671   38,600   37,939   36,544         For the Three Months Ended For the Twelve Months Ended (1) Consists of the following: Sept. 30,   June 30,   Sept. 30,   Sept. 30, 2007     2007   2006   2007     2006   Gain on sales of investments and mortgage-backed securities $ - $ - $ - $ (524 ) $ - Gain on sales of loans and other assets $ 178 $ 505 $ 4,536 $ 9,752 $ 13,271     BankUnited Financial Corporation Quarter Ended Sept. 30, 2007, Earnings Release       As of     Sept. 30,   June 30,   Sept. 30, PERIOD END BALANCE SHEET DATA   2007   2007   2006 (In Thousands)   Asset Data: Total Assets $ 15,046,271 $ 14,488,873 $ 13,570,899 Cash and cash equivalents $ 512,935 $ 283,176 $ 66,655 Investment securities $ 187,375 $ 185,718 $ 299,909 Mortgage-backed securities $ 916,223 $ 977,571 $ 1,225,944 Loans: Residential loans $ 9,996,086 $ 9,810,752 $ 8,967,323 Specialty consumer mortgages 697,726 682,193 694,590 Commercial Loans 187,951 188,773 194,269 Multi Family 120,058 117,219 85,544 Commercial Real Estate Loans 496,556 470,280 413,637 Construction 146,557 137,776 174,466 Land 303,294 308,958 337,023 Consumer loans 16,228 17,402 17,809 Home Equity loans and Lines of Credit 420,386 403,722 355,822   Unearned discounts, premiums and loan fees 235,454 227,163 196,601 Allowance for loan losses   (58,623 )   (45,089 )   (36,378 ) Loans receivable, net (excluding loans held for sale) $ 12,561,673   $ 12,319,149   $ 11,400,706     Loans held for sale $ 174,868 $ 89,880 $ 9,542 FHLB Stock $ 305,385 $ 282,885 $ 255,342   Liability Data: Total Liabilities $ 14,234,305 $ 13,682,934 $ 12,817,739 Deposits: Non-interest bearing deposits $ 342,499 $ 341,449 $ 392,264 Interest bearing checking and money market deposits 599,454 545,190 466,690 Savings 1,607,414 1,546,320 1,345,157 Certificates of deposit $100,000 and less   2,546,108     2,557,461     2,198,773   Total core deposits 5,095,475 4,990,420 4,402,884 Certificates of deposit over $100,000   1,994,913     1,972,607     1,671,248   Total deposits $ 7,090,388   $ 6,963,027   $ 6,074,132     Other borrowings $ 6,377,432 $ 6,013,730 $ 6,240,739 HiMEDS Units senior notes $ 184,000 $ 184,000 $ - Convertible senior notes $ 120,000 $ 120,000 $ 120,000 Trust preferred securities and subordinated debentures $ 249,761 $ 229,529 $ 195,791   Total stockholders' equity $ 811,966 $ 805,939 $ 753,160 Preferred equity $ 8,146 $ 8,057 $ 7,268         As of     Sept. 30,   June 30,   Sept. 30, AVERAGE BALANCE SHEET DATA   2007   2007   2006   Asset Data: Total Assets $ 14,591,572 $ 14,013,523 $ 13,315,999 Cash and cash equivalents $ 199,459 $ 90,691 $ 77,154 Investment securities $ 186,830 $ 188,459 $ 296,672 Mortgage-backed securities $ 951,431 $ 1,022,120 $ 1,270,964 Loans: Residential loans $ 9,926,698 $ 9,561,193 $ 8,588,192 Specialty consumer mortgages 691,123 676,815 692,794 Commercial Loans 182,610 194,229 189,767 Multi Family 116,689 100,559 85,562 Commercial Real Estate Loans 487,488 453,410 392,667 Construction 141,493 137,895 167,665 Land 306,845 316,022 332,636 Consumer loans 17,558 18,184 18,422 Home Equity loans and Lines of Credit 413,668 398,382 342,938   Unearned discounts, premiums and loan fees 233,227 220,763 192,455 Allowance for loan losses   (46,257 )   (43,020 )   (32,810 ) Loans receivable, net (excluding loans held for sale) $ 12,471,142   $ 12,034,432   $ 10,970,288   Loans held for sale $ 137,629 $ 73,880 $ 152,755 FHLB Stock $ 282,416 $ 270,201 $ 250,993 Interest Earning Assets $ 14,175,338 $ 13,623,193 $ 12,963,366   Liability Data: Total Liabilities $ 13,774,871 $ 13,202,232 $ 12,581,271 Deposits: Non-interest bearing deposits $ 341,135 $ 354,690 $ 375,805 Interest bearing checking and money market deposits 574,312 537,571 403,397 Savings 1,580,527 1,488,599 1,327,828 Certificates of deposit   4,578,392     4,387,516     3,806,721   Total interest bearing deposits $ 6,733,230   $ 6,413,686   $ 5,537,946   Other borrowings $ 5,939,732 $ 5,748,238 $ 6,159,633 HiMEDS Units senior notes $ 184,000 $ 128,088 $ - Convertible senior notes $ 120,000 $ 120,000 $ 120,000 Trust preferred securities and subordinated debentures $ 230,861 $ 247,202 $ 195,841 Interest-bearing liabilities $ 13,208,111 $ 12,657,215 $ 12,013,420   Equity Data: Total stockholders' equity   $ 816,701     $ 811,290     $ 734,728       BankUnited Financial Corporation Quarter Ended Sept. 30, 2007, Earnings Release       For the Three Months Ended     Sept. 30,     June 30,     Sept. 30, Selected Data:   2007     2007     2006       Quarterly Performing Data: Return on average tangible common equity 3.21 % 11.91 % 13.77 % Return on average assets 0.18 % 0.66 % 0.73 % Yield on interest-earning assets 6.99 % 7.05 % 6.63 % Cost of interest-bearing liabilities 5.04 % 5.01 % 4.71 % Net interest yield on earning assets (margin) 2.30 % 2.40 % 2.26 % Net interest spread 1.95 % 2.04 % 1.92 % Efficiency Ratio 65.25 % 55.91 % 51.02 %     For the Twelve Months Ended Sept. 30,     Sept. 30, Year to Date Performance Data: 2007     2006 Return on average tangible common equity 10.58 % 13.56 % Return on average assets 0.58 % 0.69 % Yield on interest-earning assets 6.99 % 6.06 % Cost of interest-bearing liabilities 4.98 % 4.23 % Net interest yield on earning assets (margin) 2.36 % 2.13 % Net interest spread 2.01 % 1.83 % Efficiency Ratio 56.44 % 52.49 %     As of Sept. 30,     June 30,     Sept. 30, 2007     2007     2006 Equity Data: (dollars and shares in thousands, except per share amounts) Book value per common share $ 22.71 $ 22.40 $ 20.34 Book value per common share assuming full conversion of HiMEDS Units $ 23.40 $ 23.81 $ - Tangible book value per common share $ 21.91 $ 21.60 $ 19.57 Closing Price of Class A Common Stock $ 15.54 $ 20.07 $ 26.07 Common shares outstanding 35,388 35,626 36,666 Average equity to average assets (3 mos.) 5.60 % 5.79 % 5.52 %   Capital Ratios: Tangible capital ratio (1) 7.8 % 7.5 % 7.3 % Tier 1 core capital ratio (1) 7.8 % 7.5 % 7.3 % Total risk-based capital ratio (1) 15.4 % 14.7 % 14.3 %     Non-Performing Assets: Non-accrual loans $ 180,810 $ 116,643 $ 20,740 Loans 90 day past due and still accruing   23     455     0   Total non-performing loans 180,833 117,098 20,740 Real estate owned   27,732     7,397     729   Total non-performing assets $ 208,565   $ 124,495   $ 21,469     Allowance for loan losses $ 58,623 $ 45,089 $ 36,378   Non-performing assets to total assets 1.39 % 0.86 % 0.16 % Non-performing loans to total loans 1.43 % 0.95 % 0.18 % Allowance for loan losses as a percentage of total loans 0.46 % 0.36 % 0.32 % Allowance for loan losses as a percentage of non-performing loans 32.42 % 38.51 % 175.40 % Net residential charge-offs for the three months ended $ 2,858 $ 1,005 $ 48 Net residential annualized year-to-date charge-offs as a percentage of average total loans 0.03 % 0.01 % 0.00 % Net charge-offs for the three months ended $ 5,566 $ 1,138 $ 571 Net annualized year-to-date charge-offs as a percentage of average total loans 0.08 % 0.04 % 0.00 %   (1) Capital ratios are for BankUnited FSB only     BankUnited Financial Corporation Quarter Ended Sept. 30, 2007, Earnings Release (continued)       For the Three Months Ended   For the Twelve Months Ended     Sept. 30,   June 30,   Sept. 30,   Sept. 30,     2007   2007   2006   2007   2006 Reconciliation of GAAP to non-GAAP measures: (dollars and shares in thousands, except per share amounts)     Net income:   GAAP net income $ 6,398 $ 23,209 $ 24,188 $ 81,379 $ 83,875 Plus: after-tax effect of impairment charge 3,278     3,278   Non-GAAP net income $ 9,676 $ 23,209 $ 24,188 $ 84,657 $ 83,875   Earnings per share: Basic Numerator GAAP net income available to common stockholders $ 6,257 $ 23,076 $ 24,070 $ 83,402 $ 83,402 Plus: after-tax effect of impairment charge $ 3,278     3,278   Non-GAAP net income available to common stockholders $ 9,535 $ 23,076 $ 24,070 $ 86,680 $ 83,402   Denominator GAAP weighted average common shares outstanding 35,089 35,779 36,379 35,876 34,297 Adjustment for non-GAAP measure - - - - - Non-GAAP weighted average common shares outstanding 35,089 35,779 36,379 35,876 34,297   EPS GAAP basic earnings per share $ 0.18 $ 0.65 $ 0.66 $ 2.25 $ 2.43 Plus: after-tax effect of impairment charge 0.09 - - 0.09   Non-GAAP basic earnings per share $ 0.27 $ 0.65 $ 0.66 $ 2.34 $ 2.43   Diluted Numerator GAAP net income for diluted earnings per share $ 6,257 $ 23,076 $ 24,070 $ 83,402 $ 83,402 Plus: after-tax effect of impairment charge 3,278 - - 3,278 - add back from convertible stock dividends 141 133 118 541 473 Non-GAAP net income for diluted earnings per share $ 9,676 $ 23,209 $ 24,188 $ 87,221 $ 83,875   Denominator GAAP weighted average shares for diluted earnings per share 36,767 37,671 38,600 37,939 36,544 Adjustment for non-GAAP measure - - - - - Non-GAAP weighted average shares for diluted earnings per share 36,767 37,671 38,600 37,939 36,544   EPS GAAP diluted earnings per share $ 0.17 $ 0.62 $ 0.63 $ 2.14 $ 2.30 Plus: after-tax effect of impairment charge 0.09 - - 0.09 - Non-GAAP diluted earnings per share $ 0.26 $ 0.62 $ 0.63 $ 2.23 $ 2.30   Note:   BankUnited believes earnings, not including losses related to other than temporary impairment on various investment securities (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 Sept. 30, 2007                         Attribute FULL DOC EMPLOYMENT VERIFIED (b)   STATED INCOME / VERIFIED ASSETS EMPLOYMENT VERIFIED (b)   REDUCED DOC EMPLOYMENT VERIFIED (b)   NO DOC   Total     Total Portfolio 1,836,250 4,233,866 3,118,721 934,023 10,122,859   Pct. Of Portfolio 18 % 42 % 31 % 9 % 100 %   Wt Avg. FICO 703 708 708 720 709   Pct. With Mortgage Insurance 11 % 19 % 26 % 9 % 18 %   Wt. Avg LTV (After MI Adjustment) 73.7 % 74.5 % 74.4 % 73.8 % 74.3 %   (a) Total Residential Portfolio balance excludes unearned discounts, premiums, loan fees and other. (b) For these loans employment is verified