Bankunited, Inc. · NYSE:BKU
Bankunited — Q4 2020 Earnings Presentation
33 slides from Bankunited's earnings presentation, Jan 21, 2021
Slide 1: Q4 2020 – Supplemental Information
BankUnited, Inc. Q4 2020 – Supplemental Information January 21, 2021 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: Financial Highlights
Financial Highlights ar
Slide 4: Strong Quarterly Results in a Challenging Environment
Strong Quarterly Results in a Challenging Environment Robust capital levels Loan deferrals and modifications Operating results Continued improvement in deposit mix 4 • CET1 ratios of 12.6% at the holding company and 13.9% at the bank at December 31, 2020 • Book value per share grew to $32.05 and tan
Slide 5: Highlights from Fourth Quarter Earnings
Highlights from Fourth Quarter Earnings 5 (1) PPNR is a non-GAAP financial measure. See section entitled “Non-GAAP Financial Measures” on page 32 (2) Includes guaranteed portion of non-accrual SBA loans. (3) YTD net charge-offs, annualized for Q3 20 Change From ($ in millions, except per share data)
Slide 6: Continuing to Transform our Deposit Mix
6 Continuing to Transform our Deposit Mix ($ in millions) $7,081 $7,046 $7,347 $7,542 $6,731 $5,888 $4,807 $10,911 $10,936 $10,622 $10,324 $10,590 $11,003 $12,660 $1,831 $1,847 $2,131 $2,536 $2,866 $2,917 $3,020 $4,099 $4,127 $4,295 $4,599 $5,883 $6,789 $7,009 $23,922 $23,956 $24,395 $25,001 $26,070
Slide 7: Prudently Underwritten and Well-Diversified Loan Portfolio
7 Prudently Underwritten and Well-Diversified Loan Portfolio At December 31, 2020 ($ in millions) Loan Portfolio Over Time $21,416 $21,977 $23,155 $23,185 $23,835 $23,779 $23,866 $4,699 $4,949 $5,661 $5,635 $5,578 $5,941 $6,348 $8,005 $7,501 $7,493 $7,178 $7,081 $6,984 $6,896 $5,689 $6,478 $6,719 $7
Slide 8: Allowance for Credit Losses
Allowance for Credit Losses ar
Slide 9: CECL Methodology
9 CECL Methodology Underlying Principles Economic Forecast Key Variables • The ACL under CECL represents management’s best estimate at the balance sheet date of expected credit losses over the life of the loan portfolio. • Required to consider historical information, current conditions and a reasona
Slide 10: Drivers of Change in the ACL
10 Drivers of Change in the ACL ($ in millions) ACL 9/30/20 ACL 12/31/20 Assumption Changes Portfolio Changes Change in Qualitative Overlay • New loans • Exits/runoff • Portfolio seasoning • Current market adjustment • Changes to forward path of economic forecast % of Total Loans 1.15% 1.08% Economi
Slide 11: Allocation of the ACL and Asset Quality Ratios
11 (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $51.3 million, $43.6 million, and $45.7 million or 0.22%, 0.18%, and 0.20% of total loans and 0.15%, 0.12%, and 0.14% of total assets, at December 31, 2020, September 30, 2020, and December 31, 20
Slide 12: Loan Portfolio and Credit
Loan Portfolio and Credit ar
Slide 13: Loan Portfolio – Geographic Distribution
13 Loan Portfolio – Geographic Distribution At December 31, 2020 NY Tri-State Area 24% FL 38%Other 38% CA 31% NY 22%FL 11% Other 36% NY 36% FL 53% Other 11% Commercial (1) Residential CRE (1) Includes PPP, MWL, BFG and Pinnacle
Slide 14: Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio
14 ($ in millions) Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio At December 31, 2020 • Includes $2 billion of owner-occupied real estate • Some key observations: • Educational services – well established private colleges, universities and high schools • Transportation and
Slide 15: Loan Portfolio – Commercial Real Estate by Property Type
15 • Commercial real estate loans are secured by income-producing, non-owner occupied properties, typically with well capitalized middle market sponsors • 74% of the CRE portfolio, 79% of the retail segment and 55% of the hotel segment have LTVs less than 65% • Construction and land loans, included
Slide 16: Loan Portfolio – Deferrals and Modifications
16 • Loans subject to COVID related deferral or modification under the CARES Act totaled $794 million or 3% of the total loan portfolio at December 31, 2020. By comparison, at the end of Q2, we reported that we had granted 90-day payment deferrals on $3.6 billion of loans or 15% of the total loan po
Slide 17: Loan Portfolio – Segments Identified for Heightened Monitoring
17 Loan Portfolio – Segments Identified for Heightened Monitoring At December 31, 2020 Moderate exposure to sectors most impacted by the pandemic ($ in millions) • 79% of commercial loans deferred or modified and 55% of criticized and classified assets are in these sub- segments Portfolio Balance %
Slide 18: Loan Portfolio – Retail
18 Loan Portfolio – Retail At December 31, 2020 ($ in millions) • No significant mall or “big box” exposure • $46 million and $19 million of Retail-Unanchored and Retail- Anchored, respectively, are mixed-used properties Retail - Commercial Real Estate Retail – Commercial & Industrial Property Type
Slide 19: Loan Portfolio – BFG Franchise Finance
19 Loan Portfolio – BFG Franchise Finance At December 31, 2020 ($ in millions) Portfolio Breakdown by Concept CA 19% FL 8% TX 7% UT 6% Other 60% Portfolio Breakdown by Geography Restaurant Concepts Balance % of BFG Franchise Currently Under Short- Term Deferral CARES Act Modifications Burger King 63
Slide 20: Loan Portfolio – Hotel
20 Loan Portfolio – Hotel At December 31, 2020 ($ in millions) • 74% of our exposure is in Florida, followed by 16% in New York • Includes $61.8 million in SBA loans • All hotel properties in Florida and two of three properties in New York are now open Exposure by Flag Marriott $171 28% Independent
Slide 21: Credit Quality – Residential
High quality residential portfolio consists of primarily prime jumbo mortgages with de-minimis charge-offs since inception as well as fully government insured assets 21(1) Excludes government insured residential loans. FICOs are refreshed routinely. LTVs are typically based on valuation at originati
Slide 22: Asset Quality Metrics
22 Asset Quality Metrics 0.59% 0.88% 0.85% 0.86% 0.84% 1.02% 0.51% 0.68% 0.64% 0.67% 0.66% 0.80% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% Dec 18 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans Non-performing Loans to T
Slide 23: Non-Performing Loans by Portfolio Segment
23 Non-Performing Loans by Portfolio Segment ($ in thousands) (1) Includes the guaranteed portion of non-accrual SBA loans totaling $51.3 million, $43.6 million, $45.7 million, $49.1 million, $45.7 million and $17.8 at December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, December 31
Slide 24: Criticized and Classified Loans
24 (1) Substandard non-accruing and doubtful includes $11.7 million of loans rated doubtful at December 31, 2020. (2) Substandard non-accruing and doubtful includes $0.2 million of loans rated doubtful at December 31, 2020. (3) Includes the guaranteed portion of non-accrual SBA loans totaling $51.3
Slide 25: Criticized and Classified - CRE by Property Type
25 Criticized and Classified - CRE by Property Type ($ in millions) $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Warehouse/Industrial Hotel Other $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Office Multifamily Retail $0 $50 $100 $150 $200 $250 $300
Slide 26: Criticized and Classified – BFG Franchise Finance
26 Criticized and Classified – BFG Franchise Finance ($ in millions) $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/18 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/18 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 Restaurant Concepts (1) Fitness Concepts $0 $20 $40
Slide 27: Asset Quality - Delinquencies
27 Asset Quality - Delinquencies ($ in millions) Commercial Residential (2) $0 $20 $40 $60 $80 $100 $120 $140 12/31/18 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 $0 $20 $40 $60 $80 $100 $120 $140 12/31/18 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 (1) (1) Increase in 60-89 Days PD at 9/30/20 impacted
Slide 28: Investment Portfolio
Investment Portfolio ar
Slide 29: Investment Securities AFS
29 Investment Securities AFS ($ in thousands) The AFS debt securities portfolio of $9.1 billion was in a net unrealized gain position of $85.6 million at December 31, 2020 Portfolio Composition Ratings Distribution Gov 36% AAA 56% AA 5% A 2% NR 1% US Government and agency 35% Private label RMBS and
Slide 30: Investment Securities – Asset Quality of Select Non-Agency Securities
30 Investment Securities – Asset Quality of Select Non-Agency Securities At December 31, 2020 Strong credit enhancement levels on CLOs and CMBS Collateralized Loan Obligations (CLOs) Private Label Commercial Mortgage-Backed Securities (CMBS) AAA 84% AA 13% A 3% AAA 90% AA 7% A 3% Wtd. Avg. Rating Mi
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 32: Non-GAAP Financial Measures
32 Non-GAAP Financial Measures
Slide 33: Non-GAAP Financial Measures (continued)
33 Non-GAAP Financial Measures (continued)