Bankunited Financial — Investor Presentation (June 2008)
27 slides from Bankunited Financial's investor presentation, Jun 4, 2008
Slide 1: BankUnited Financial Corporation Investor Presentation
Exhibit 99.1 BankUnited Financial Corporation Investor Presentation June 2008 05083F481
Slide 2: Forward Looking Information
Forward Looking Information This presentation 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," "will likely result," "expect," "w
Slide 3: Introduction
Introduction This information is designed to assist the investor in 1 understanding the differences between BankUnited’s portfolio and those of other mortgage lenders Included in this presentation are the following: A description of BankUnited’s credit standards BankUnited residential first mortgage
Slide 4: BankUnited Franchise Overview
BankUnited Franchise Overview Leading independent Florida banking franchise Established Florida footprint with 86 branches in 13 coastal counties Largestindependent bank in Florida with $14.3 billion in assets at March 31, 2008 $7.6 billion in deposits at April 30, 2008 Attractive retail commercial
Slide 5: Residential Portfolio Credit Standards
Residential Portfolio Credit Standards No subprime lending No piggyback loans1 No correspondent lending2 Regionally basedBankUnited underwriters knowledgeable of their markets Loans underwritten at the fullyindexed rate3 Loans originated with an loan-to-value (LTV) over 80% almost always insured by
Slide 6: Residential Portfolio Credit Standards
Residential Portfolio Credit Standards Strong appraisal review process using regionally based appraisers Differing levels of loan amount, LTV, geography and underwriter judgment trigger in-house appraisal review Total residential portfolio weighted average FICO at originationof 709 as of March 31, 2
Slide 7: Residential Portfolio Credit Standards
Residential Portfolio Credit Standards Rigorous underwriting standards designed to prevent borrower fraud and ensure accurate borrower representations FICO Score Criteria 24 months of active credit history required – Minimum of four credit lines required – No one-time scores allowed Credit history r
Slide 8: Residential Portfolio Overview
March 31, 2008 – Residential Portfolio Overview 1 2 Composition by Loan Type Portfolio Breakdown by LTV and FICO Original LTV ARM 16% <= 80% 80.1% –90.0% > 90% >=740 19.3% 4.3% 1.3% Fixed 9% 700 -739 21.5% 5.8% 1.6% 660 -699 25.4% 7.2% 2.2% 640 -659 6.7% 1.2% 0.4% OARM 4 620 -639 2.1% 0.3% 0.2% 75%
Slide 9: Residential Portfolio Overview
1 March 31, 2008 - Residential Portfolio Overview Composition by State Composition by Vintage 2001 2008 3% 2002 1% 2% Other 2003 20% 2007 4% 21% 2004 11% NJ 6% FL IL 52% 6% 2005 AZ 22% 7% CA 2006 9% 36% Total Loans: $9.8 billion Note: 1 Excludes consumer specialty mortgages and loans held-for-sale 8
Slide 10: Option ARM and Select-My-Payment Portfolio
March 31, 2008 – Option ARM and Select-My-Payment Portfolio SM 1 General Statistics Portfolio Breakdown by LTV and FICO at Origination Outstanding Loans at 03/31/08 $7.4 billion4 Original LTV <= 80% 80.1% – 90.0% > 90% Weighted Avg. Broker Premium 2.28% >=740 18.1% 4.7% 1.2% Weighted Avg. Loan Age 2
Slide 11: Option ARM and Select-My-Payment Portfolio
March 31, 2008 - Option ARM and Select-My-Payment Portfolio Composition by State Composition by Vintage 2008 2003 2004 1% 1% 7% Other 23% 2007 27% 2005 21% FL 44% IL 6% NJ 7% AZ 9% CA 11% 2006 43% Total Option ARM Loans: $7.4 billion 31% of Option ARMloansoriginatedin 2006 are subject to mortgage in
Slide 12: Residential Portfolio by Vintage
March 31, 2008 - Residential Portfolio by Vintage BankUnited’s underwriting standards provide that borrowers of loans originated with loan-to-value (LTV) ratios greater than 80% at time of origination are required to purchase mortgage insurance3 % With Non- Mortgage Performing Non- % of Weighted Bal
Slide 13: Total Residential Loan Portfolio by Geography
March 31, 2008 -Total Residential Loan Portfolio by Geography Original Weighted Weighted Avg. Balance % of Total NPLs Non-Performing State Avg. FICO LTV After MI (in thousands) Residential (in thousands) Ratio % 2 % of NPLs Florida 710 74.2% $ 5,063,141 52% $ 314,152 6.20% 55% California 707 77.6% $
Slide 14: Florida Residential Loan Portfolio by MSA
March 31, 2008 - Florida Residential Loan Portfolio by MSA Strong LTVs at origination and mortgage insurance should mitigate losses Original Weighted Weighted Non- Avg. Avg. LTV Balance % of Florida NPLs Performing % of Florida MSA FICO After MI (in thousands) Residential (in thousands) Ratio % ² NP
Slide 15: Residential Portfolio Private Mortgage Insurance Coverage
Residential Portfolio Private Mortgage Insurance Coverage As of March 31, 2008, 19%, or $1.9 billion, of the residential loan portfolio was subject to mortgage insurance and 29% of the 2006 vintage was subject to mortgage insurance A substantial number of loans were underwritten for private mortgage
Slide 16: Real Estate Owned (REO) Activity
Real Estate Owned (REO) Activity For the Quarter Ended March 31, 2008 Number of Units Beginning number of residential properties 160 Transferred In 145 Sales 39 Ending number of residential properties 266 During April and May 2008, the Company sold 41 REO properties and as of May 31, 2008 had an add
Slide 17: Residential Loan Portfolio - Documentation
Residential Loan Portfolio - Documentation Employment verified loans require either verbal verification of employment, or reasonableness of stated income for employmentposition, includingdepth of credit,and confirmationof assets and/or at leasttwo bank deposits supporting stated income Period Ended
Slide 18: Credit Verification Process
Credit Verification Process As part of its strong credit focus, when underwriting loans based on stated income or stated assets, BankUnited has sought to cross verify borrower assertions through multiple channels To validate the Company’s underwriting standards, management conducted a random sample
Slide 19: Credit Verification Process (cont'd)
Credit Verification Process (cont’d) 89% of sampled loans showed sufficient income to support borrower assertions at the time of origination in at least two or more monthly deposit slips or bank statements All sampled loans had verified reserves The stringent process to verify employment and the rea
Slide 20: Cumulative Credit Verification Process
Cumulative Credit Verification Process Stated Income Reasonable Verification of Employment for Position Unverified 17% Unverified 31% Verified 83% Verified 100% Verified 69% Depth of Credit 1 Substantiate Income 2 Unverified 11% Unverified 37% 100% of sampled loans verified for either verbal verific
Slide 21: Option-ARM Payments Above the Minimum
Option-ARM Payments Above the Minimum A significant number of borrowers make more than the minimum required payment Based on a random sample1 of payments receivedbetween September 2007 and March 31, 2008 with respect to 675 loans (3% of total outstanding loans) : 45.3% of loans made at least 1 payme
Slide 22: Option-ARM Payments Above the Minimum
Option-ARM Payments Above the Minimum Payments Made Above Minimum Over Last 7 Months Number of Payments Above the Minimum Over the Last 7 Ending March 31, 2008 Months Ending March 31, 2008 25.0 6 payments 7 payments 22.7 5.6% 21.3 21.6 21.8 21.5 5 payments 3.6% 20.7 5.5% 20.0 18.7 4 payments 4.4% Pa
Slide 23: Total Non-Performing Loans
1 March 31, 2008 – Total Non-Performing Loans NPLs by Loan Type NPLs by State ARM Other 6.6% Fixed 12.0% 3.0% VA 4.0% NJ 5.0% IL 5.0% FL AZ 55.0% 8.0% OARM 90.4% CA 11.0% Total NPLs: $566.7 million Note: 1 Excludes consumer specialty mortgages and loans held-for-sale 22 05083F481
Slide 24: Loan Performance
Loan Performance Residential Portfolio Option ARM and Select-My-Payment Period Ended March 31, 2008 7.0% 5.8% 4.3% 3.6% 1.7% 2.0% 1.1% 1.3% 0.7% 0.12% 0.8% 0.17% 0.03% 0.04% 0.01% 0.04% 0.05% 0.00% 0.01% 0.00% Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 NPL's Charge-Offs NP
Slide 25: Option ARMs Resets Projections and Actual Experience
Option ARMs Resets Projections and Actual Experience This projection assumes 85% of payments made will be at the minimum payment each month. Loans currently outstanding due to reset based on reaching either the 5 year mark or the 115% limit are projected to be: 2,458 loans with estimated balances to
Slide 26: Residential Loan Delinquency Trends
Residential Loan Delinquency Trends 1,2 1600 1400 1200 1000 800 600 400 200 0 2006 2007 2008 1 Payment Past Due 2 Payments Past Due 3 Payments Past Due Note: 1 As of May 2008 2 Includes only 1, 2 and 3 missed payments 25 05083F481
Slide 27: Thank You
BankUnited Financial Corporation Thank You 05083F481
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