Bankunited, Inc. · NYSE:BKU
Bankunited — Q1 2024 Earnings Presentation
30 slides from Bankunited's earnings presentation, Apr 17, 2024
Slide 1: Q1 2024 – Supplemental Information
April 17, 2024 Q1 2024 – Supplemental Information 1 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: Execution on Near-term Strategic Priorities
Improve Asset Mix Improve Funding Profile 2 Maintain Robust Liquidity and Capital Net Interest Margin Execution on Near-term Strategic Priorities 4 3 4 1 • Wholesale funding down $1.4 billion • NIDDA up $404 million; improved to 27% of deposits • Non-brokered deposits grew by $644 million; total dep
Slide 5: Topics of Current Interest
Topics of Current Interest Capital • CET1 ratio 11.6% ; TCE/TA 7.3% • AOCI improved $33 million quarter-over-quarter • Book value and tangible book value per share grew to $35.31 and $34.27 Deposits and Funding • Total deposits grew by $489 million • Non-brokered deposits grew by $644 million • Non-
Slide 6: Highlights from First Quarter Earnings
Highlights from First Quarter Earnings Change From ($ in millions, except per share data) Q1’24 Q4’23 Q1’23 Q4’23 Q1’23 Key Highlights Net Interest Income $215 $217 $228 $(2) $(13) Provision for Credit Losses $15 $19 $20 $(4) $(5) Total Non-interest Income $27 $17 $17 $10 $10 Total Non-interest Expe
Slide 7: Deposits
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Slide 8: Deposit Trends
Deposit Trends ($ in millions) $6,820 $7,347 $4,807 $3,384 $4,268 $5,164 $5,116 $11,262 $10,622 $12,660 $13,369 $13,061 $11,136 $11,123 $1,771 $2,131 $3,020 $3,709 $2,142 $3,403 $3,548 $3,621 $4,295 $7,009 $8,976 $8,038 $6,835 $7,240 $23,474 $24,395 $27,496 $29,438 $27,509 $26,538 $27,027 Non-intere
Slide 9: Cost of Funds Trend
Cost of Funds Trend 9 1.42% 0.36% 0.16% 1.92% 3.18% 3.17% 1.75% 0.25% 0.25% 4.50% 5.50% 5.50% Spot APY - Total Deposits Target Federal Funds Rate Upper Bound 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 (1.00)% —% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Spot Average Annual Percentage Yield (“AP
Slide 10: Loans and the Allowance for Credit Losses
Loans and the Allowance for Credit Losses 10
Slide 11: Prudently Underwritten and Well-Diversified Loan Portfolio
11 Prudently Underwritten and Well-Diversified Loan Portfolio At March 31, 2024 ($ in millions) Loan Portfolio Over Time $5,661 $6,348 $8,368 $8,901 $8,209 $8,057 $7,493 $6,896 $5,702 $5,700 $5,819 $5,839 $6,718 $6,448 $6,735 $8,305 $8,907 $8,661 $768 $1,259 $1,092 $525 $433 $456 $2,515 $2,915 $1,86
Slide 12: High Quality CRE Portfolio
High Quality CRE Portfolio At March 31, 2024 ($ in millions) Property Type Balance % of Total CRE FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Office $ 1,791 31 % 59 % 24 % 17 % 1.66 65.3 % Warehouse/Industrial 1,287 23 % 60 % 9 % 31 % 2.03 51.7 % Multifamily 840 14 % 48 % 52 % — % 1.89 48.1 %
Slide 13: Manageable CRE Maturity Risk
Manageable CRE Maturity Risk At March 31, 2024 ($ in millions) Property Type Maturing in the Next 12 Months % Maturing in the Next 12 Months Fixed Rate or Swapped Maturing in the Next 12 Months Fixed Rate to Borrower as a % of Total Portfolio Office $ 342 19 % $ 121 7 % Warehouse/Industrial 88 7 % 7
Slide 14: CRE Peer Benchmarking
CRE Peer Benchmarking 14 35% 35% 24% Peer Median (1) Peer Mean (1) BankUnited, N.A —% 5% 10% 15% 20% 25% 30% 35% 40% 225% 216% 166% —% 50% 100% 150% 200% 250% 1. BKU information as of March 31, 2024 2. CRE peer median information based on December 31, 2023 Call Report data (most recent date availabl
Slide 15: CRE Office Portfolio - Additional Information
CRE Office Portfolio - Additional Information At March 31, 2024 15 • 17% or $309 million of the total office portfolio is medical office • Rent rollover in next 12 months approximately 10% of the total office portfolio; 11% for FL and 6% in NY Tri State • Manhattan portfolio has approximately 96% oc
Slide 16: Granular, Diversified Commercial & Industrial Portfolio
Granular, Diversified Commercial & Industrial Portfolio At March 31, 2024 ($ in millions) Industry Balance(1) % of Portfolio Finance and Insurance $ 1,424 16.4 % Manufacturing 849 9.8 % Educational Services 743 8.6 % Utilities 677 7.8 % Wholesale Trade 663 7.6 % Health Care and Social Assistance 631
Slide 17: Drivers of Change in the ACL - Current Quarter
$202.7 $6.4 $(8.6) $(1.0) $(3.4) $21.5 $217.6 Drivers of Change in the ACL - Current Quarter ($ in millions) Risk Rating Migration and Specific Reserves Economic Forecast Net Charge- Offs ACL 03/31/24 ACL 12/31/23 0.90%0.82%% of Total Loans 17 Change in Qualitative Overlay Portfolio and Other • Larg
Slide 18: Allocation of the ACL
Allocation of the ACL ($ in millions) December 31, 2023 March 31, 2024 Balance % of Loans Balance % of Loans Commerical: Commercial real estate $ 41.3 0.71 % $ 61.1 1.05 % Commercial and industrial 142.4 1.60 % 140.0 1.62 % Franchise and equipment finance 10.9 2.85 % 9.4 2.71 % Total commercial 194.
Slide 19: Asset Quality Metrics
Asset Quality Metrics 19 Non-Performing Loans to Total Loans Non-Performing Assets to Total Assets Net Charge-offs to Average Loans(1) 0.88% 1.02% 0.87% 0.42% 0.52% 0.48% 0.68% 0.80% 0.68% 0.26% 0.35% 0.32% Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA
Slide 20: Non-Performing Loans by Portfolio Segment
Non-Performing Loans by Portfolio Segment ($ in millions) 20 $205 $244 $206 $105 $127 $116 $19 $29 $29 $21 $21 $18 $24 $60 $30 $65 $43 $58 $22 $34 $30 $35 $45 $33 $13 $24 $23 $46 $51 $46 $40 $42 $40 $16 $16 $10 $9 $6 $5 Non-Guaranteed Portion of SBA Guaranteed Portion of SBA Franchise and Equipment
Slide 21: Criticized and Classified Loans
Criticized and Classified Loans ($ in millions) 21 Commercial Real Estate(1) Commercial(1)(2) Special Mention Substandard Accruing Substandard Non-accruing and Doubtful 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 $— $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 12/3
Slide 22: Criticized and Classified CRE Loans by Property Type
Criticized and Classified CRE Loans by Property Type ($ in millions) 22 March 31, 2024 $123 $55 $96 $292 $144 $3 $17 Multifamily Hotel Retail Office Construction & Land Other SBA $116 $55 $89 $146 $77 $3 $16 December 31, 2023
Slide 23: Asset Quality - Delinquencies
Asset Quality - Delinquencies ($ in millions) 23 Commercial(1) CRE 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 $— $20 $40 $60 $80 $100 Residential(2) 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 $— $20 $40 $60 $80 $100 30-59 Days PD 60-89 Days PD 90 Days+ PD 12/31/19 12/31/20 12/3
Slide 24: Residential Portfolio Overview
Residential Portfolio Overview At March 31, 2024 24 Residential Loan Product Type FICO Distribution(1) Breakdown by LTV 1. Excludes government insured residential loans. FICOs are refreshed routinely. LTVs are typically based on valuation at origination Prior 22% 2020 13% 2021 43% 2022 16% 2023 5% 2
Slide 25: Investment Portfolio
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Slide 26: High Quality, Short-Duration Securities Portfolio
High Quality, Short-Duration Securities Portfolio ($ in millions) December 31, 2022 December 31, 2023 March 31, 2024 Portfolio Net Unrealized Loss Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss Fair Value US Government and Agency $ (146) $ 2,780 $ (115) $ 2,656 $ (110) $ 2,884 Private
Slide 27: High Quality, Short-Duration Securities Portfolio
High Quality, Short-Duration Securities Portfolio At March 31, 2024 Strong credit enhancement levels Private Label RMBS Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 1.2 92.2 17.8 2.2 AA 20.4 34.5 25.3 5.3 A 28.5 30.5 29.2 5.4 Wtd. Avg. 2.4 88.9 18.3 2.4 Private Label CMBS Subo
Slide 28: Appendix - Additional Information
Appendix - Additional Information 28
Slide 29: Ample Liquidity Coverage of Uninsured Deposits
Ample Liquidity Coverage of Uninsured Deposits ($ in millions) 29 Insured Deposits Total Deposits $ 27,027 Estimated Uninsured Deposits $ 12,777 Less: Collateralized deposits (3,048) Less: Affiliate deposits (286) Adjusted Uninsured Deposits $ 9,443 Estimated Insured and Collateralized Deposits $ 17
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures 30 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