Slide 1: Q3 2022 – Supplemental Information
October 20, 2022 Q3 2022 – Supplemental Information Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of BankUnited, Inc. (“BankUnited,” “BKU” or the “Company”) with respect to, among other things, future events and
Slide 3: Quarterly Highlights
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Slide 4: Quarterly Snapshot
Quarterly Snapshot 4 Operating results Loans and Deposits Asset Quality Capital • Net income for the quarter of $87.9 million and EPS of $1.12 • NIM expanded by 13bps to 2.76% • Loan growth of $186 million, excluding PPP runoff • Core C&I and CRE segments grew $444 million • Total deposits declined
Slide 5: Highlights from Third Quarter Earnings
Highlights from Third Quarter Earnings 5 Key Highlights Reflects declines in value of preferred stock investments in Q2 22 Investments in technology and people to support growth $444 million growth in core CRE and C&I segments Continued margin expansion in rising rate environment Credit remains favo
Slide 6: Continued Strategic Focus - Transforming Deposit Base
Continued Strategic Focus - Transforming Deposit Base ($ in millions) 6 Non-interest bearing demand deposits have grown at a compound annual growth rate of 30% since December 31, 2019 Quarterly Cost of Deposits 0.94% 1.52% 1.48% 0.43% 0.19% 0.78% Non-interest bearing as % of Total Deposits 14.0% 15.
Slide 7: Prudently Underwritten and Well-Diversified Loan Portfolio
Prudently Underwritten and Well-Diversified Loan Portfolio At September 30, 2022 ($ in millions) 7 Loan Portfolio Over Time CRE C&I Other Residential Loan Product Type Non-owner Occupied 78% Multi- family 17% Construction and Land 5% Pinnacle 62% Bridge - Franchise 17% Bridge - Equipment 20% PPP 1%
Slide 8: Allowance for Credit Losses
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Slide 9: Drivers of Change in the ACL
Drivers of Change in the ACL 9 ACL 6/30/22 ACL 9/30/22 Portfolio Changes Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 0.54% 0.54% • New loans • Repayments and runoff • Portfolio seasoning • Changes in borrower financial condition • Risk rating mig
Slide 10: Allocation of the ACL
Allocation of the ACL 10 ($ in millions) (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.8 million, $43.4 million, $46.1 million, and $51.3 million or 0.17%, 0.18%, 0.19%, and 0.22%, of total loans and 0.11%, 0.12%, 0.13%, and 0.15% of total a
Slide 11: Loan Portfolio and Credit
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Slide 12: Granular, Diversified Commercial & Industrial Portfolio
12 Granular, Diversified Commercial & Industrial Portfolio At September 30, 2022 (1) Includes $1.9 billion of owner-occupied real estate (2) Excludes PPP loans ($ in millions) Industry Balance (1)(2) Commitment % of Portfolio Finance and Insurance 1,471$ 2,640$ 19.1% Educational Services 781 837 10.
Slide 13: Commercial Real Estate by Property Type
13 Commercial Real Estate by Property Type At September 30, 2022 ($ in millions) Property Type Balance FL NY Tri State Other Office 1,879$ 58% 25% 17% Multifamily 1,102 50% 49% 1% Warehouse/Industrial 1,102 62% 20% 18% Retail 925 62% 29% 9% Hotel 437 81% 12% 7% Other 132 67% 24% 9% 5,577$ 60% 29% 11
Slide 14: Asset Quality Metrics - Continued Positive Trends
Asset Quality Metrics - Continued Positive Trends Non-performing Loans to Total Loans Non-performing Assets to Total Assets Net Charge-offs to Average Loans(1) (1) YTD net charge-offs annualized at September 30, 2022. 14 0.88% 1.02% 0.87% 0.64% 0.68% 0.80% 0.68% 0.47% 0.00% 0.25% 0.50% 0.75% 1.00% 1
Slide 15: Non-Performing Loans by Portfolio Segment
Non-Performing Loans by Portfolio Segment ($ in millions) (1) Includes the guaranteed portion of non-accrual SBA loans totaling $41.8 million, $46.1 million, $51.3 million, and $45.7 million at September 30, 2022, December 31, 2021, December 31, 2020, and December 31, 2019, respectively. $19 $29 $29
Slide 16: Criticized and Classified Loans
Criticized and Classified Loans ($ in millions) Commercial Real Estate Commercial & Industrial (1) Franchise Finance(3) Equipment Finance SBA(2) (1) Substandard non-accruing and doubtful includes $25.5 million, $1.1 million and $27.8 million of loans rated doubtful at September 30, 2022, June 30, 20
Slide 17: Criticized and Classified – CRE by Property Type
Criticized and Classified – CRE by Property Type ($ in millions) Office Multifamily Retail Warehouse/Industrial Hotel Other $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $35
Slide 18: Asset Quality – Delinquencies
Asset Quality – Delinquencies ($ in millions) Commercial (1) CRE Residential (2) (1) Includes lending subsidiaries, excludes PPP loans (2) Excludes government insured residential loans 18 $0 $20 $40 $60 $80 12/31/19 12/31/20 12/31/21 6/30/22 9/30/22 $0 $20 $40 $60 $80 12/31/19 12/31/20 12/31/21 6/30
Slide 19: Credit Quality – Residential
Credit Quality – Residential At September 30, 2022 High quality residential portfolio consists primarily of prime jumbo mortgages with de-minimis charge- offs since inception as well as fully government insured assets FICO Distribution(1) Breakdown by LTV(1) Breakdown by Vintage(1) (1) Excludes gove
Slide 20: Investment Portfolio
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Slide 21: Investment Securities AFS
21 Investment Securities AFS ($ in thousands) Portfolio Composition Ratings Distribution NR 1% Gov 29% AAA 60% AA 7% A 3% US Government and agency 29% Private label RMBS and CMOs 26% Private label CMBS 27% Residential real estate lease- backed securities 5% CLO 11% State Municipal Obligations 1% Oth
Slide 22: Investment Securities – Asset Quality of Select Non-Agency Securities
22 Investment Securities – Asset Quality of Select Non-Agency Securities At September 30, 2022 Strong credit enhancement levels Private Label RMBS Private Label CMBS CLOs Rating Min Max Avg AAA 30.0 98.8 44.0 7.1 AA 29.3 92.9 43.6 7.6 A 24.7 69.1 37.0 9.0 Wtd. Avg. 29.7 96.9 43.7 7.2 Subordination W
Slide 23: Recognitions and Rankings
Recognitions and Rankings 23 South Florida-based Community Bank based on assets, South Florida Business Journal, October 2021 # 1 South Florida Business Journal, June 2021 Healthiest Employer in South Florida,#1 Superior rating by BauerFinancial consecutively since its inception Newsweek, March 2022
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 25: Non-GAAP Financial Measures: PPNR
25 Non-GAAP Financial Measures 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 cove
Slide 26: Non-GAAP Financial Measures: Tangible Book Value per Share
26 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 c