Bankunited, Inc. · NYSE:BKU
Bankunited — Q1 2022 Earnings Presentation
29 slides from Bankunited's earnings presentation, Apr 21, 2022
Slide 1: Q1 2022 – Supplemental Information
April 21, 2022 Q1 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: Recognitions and Rankings
Recognitions and Rankings 3 South Florida-based Community Bank based on assets, South Florida Business Journal, October 2021 # 1 Largest Florida-based Bank based on assets, Florida Business Journals, December 2020 # 3 South Florida Business Journal, June 2021 Healthiest Employer in South Florida,#1
Slide 4: Financial Highlights
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Slide 5: Quarterly Snapshot
Quarterly Snapshot 5 Operating results Loans and Deposits Asset Quality Capital • Net income for the quarter of $67.2 million and EPS of $0.79 • NIM expanded by 6bps to 2.50% • 22% YoY increase in deposit service charge revenue • Earnings impacted by $10.5 million decline in fair value of preferred
Slide 6: Highlights from First Quarter Earnings
Highlights from First Quarter Earnings 6 Key Highlights $11 million loss on certain preferred stock investments in Q1; $18 million gain on sale of a pool of residential loans in Q4 $59 million in notable expense items in Q4 $69 million in discrete income tax benefits in Q4 2021 21% YoY non-interest
Slide 7: Transformed Deposit Mix
Transformed Deposit mix ($ in millions) 7 $6,335 $6,820 $7,347 $4,807 $3,384 $2,976 $10,715 $11,262 $10,622 $12,660 $13,369 $13,030 $1,758 $1,771 $2,131 $3,020 $3,709 $2,872 $3,071 $3,621 $4,295 $7,009 $8,976 $9,663$21,879 $23,474 $24,395 $27,496 $29,438 $28,541 12/31/17 12/31/18 12/31/19 12/31/20 1
Slide 8: Prudently Underwritten and Well-Diversified Loan Portfolio
Prudently Underwritten and Well-Diversified Loan Portfolio At March 31, 2022 ($ in millions) 8 Loan Portfolio Over Time CRE C&I Lending Subs Residential Loan Product Type $4,949 $5,661 $6,348 $8,368 $8,613 $7,501 $7,493 $6,896 $5,702 $5,534 $6,478 $6,718 $6,448 $6,735 $6,858 $782 $249 $80 $432 $768
Slide 9: Allowance for Credit Losses
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Slide 10: CECL Methodology
CECL Methodology 10 Underlying Principles Economic Forecast Key Variables • The ACL under CECL represents management’s best estimate at the balance sheet date of expected credit losses over the life of the loan portfolio. • Required to consider historical information, current conditions and a reason
Slide 11: Drivers of Change in the ACL
Drivers of Change in the ACL 11 ACL 12/31/21 ACL 3/31/22 Portfolio Changes and Migration Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 0.53% 0.54% • Risk rating migration • Changes in specific reserves • New loans • Exits/runoff • Portfolio seasoni
Slide 12: Allocation of the ACL
Allocation of the ACL 12 ($ in millions) (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.9 million, $46.1 million, and $51.3 million or 0.18%, 0.19%, and 0.22%, of total loans and 0.12%, 0.13%, and 0.15% of total assets, at March 31, 2022, Dec
Slide 13: Loan Portfolio and Credit
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Slide 14: Loan Portfolio – Geographic Distribution
Loan Portfolio – Geographic Distribution At March 31, 2022 Commercial (1) Residential CRE (1) Includes PPP, MWL, BFG and Pinnacle 14 FL 39% NY Tri-State Area 23% Other 38% CA 32% FL 7% NY 21% Other 40% FL 59% NY Tri-State Area 32% Other 9%
Slide 15: Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio
15 Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio At March 31, 2022 ($ in millions) • Includes $1.9 billion of owner- occupied real estate • Some key observations: • Educational services – well established private colleges, universities and high schools • Transportation and
Slide 16: Loan Portfolio – Commercial Real Estate by Property Type
Loan Portfolio – Commercial Real Estate by Property Type At March 31, 2022 • Commercial real estate loans are secured by income-producing, non-owner occupied properties, typically with well capitalized middle market sponsors. • All non-performing hotel loans are in the SBA portfolio. • NY commercial
Slide 17: Credit Quality – Residential
Credit Quality – Residential At March 31, 2022 High quality residential portfolio consists of primarily prime jumbo mortgages with de-minimis charge- offs since inception as well as fully government insured assets FICO Distribution(1) Breakdown by LTV(1) Breakdown by Vintage(1) (1) Excludes governme
Slide 18: Asset Quality Metrics
Asset Quality Metrics Non-performing Loans to Total Loans Non-performing Assets to Total Assets Net Charge-offs to Average Loans(1) (1) YTD net charge-offs, annualized at March 31, 2022. 18 0.88% 1.02% 0.87% 0.65% 0.68% 0.80% 0.68% 0.47% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 12/31/21
Slide 19: Non-Performing Loans by Portfolio Segment
Non-Performing Loans by Portfolio Segment ($ in millions) (1) Includes the guaranteed portion of non-accrual SBA loans totaling $41.9 million, $46.1 million, $51.3 million, and $45.7 million at March 31, 2022, December 31, 2021, December 31, 2020, and December 31, 2019, respectively. $19 $29 $29 $20
Slide 20: Criticized and Classified Loans
Criticized and Classified Loans ($ in millions) Commercial Real Estate Commercial & Industrial (1) Franchise Finance(3) Equipment Finance SBA(2) (1) Substandard non-accruing and doubtful includes $6.8 million and $27.8 million of loans rated doubtful at March 31, 2022 and December 31, 2021, respecti
Slide 21: Criticized and Classified – CRE by Property Type
Criticized and Classified – CRE by Property Type ($ 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 $35
Slide 22: Criticized and Classified – BFG Franchise Finance
Criticized and Classified – BFG Franchise Finance ($ in millions) Restaurant Concepts(1) Fitness Concepts Other $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 12/31/21 3/31/22 $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 12/31/21 3/31/22 $0 $20 $40 $60 $80 $100 $120 $140 $160 1
Slide 23: Asset Quality – Delinquencies
Asset Quality – Delinquencies ($ in millions) Commercial(1) CRE Residential (2) (1) Includes lending subsidiaries (2) Excludes government insured residential loans. $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 12/31/21 3/31/22 $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 12/31/21 3/31/
Slide 24: Investment Portfolio
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Slide 25: Investment Securities AFS
25 Investment Securities AFS ($ in thousands) Portfolio Composition Ratings Distribution NR 1% Gov 30% AAA 59% AA 7% A 3% US Government and agency 30% Private label RMBS and CMOs 26% Private label CMBS 26% Residential real estate lease- backed securities 5% CLO 10% State Municipal Obligations 2% Oth
Slide 26: Investment Securities – Asset Quality of Select Non-Agency Securities
26 Investment Securities – Asset Quality of Select Non-Agency Securities At March 31, 2022 Strong credit enhancement levels on Private Label RMBS and CMBS Private Label RMBS Private Label CMBS AAA 84% AA 11% A 5% Rating Min Max Avg AAA 30.0 88.5 44.3 7.4 AA 28.5 92.5 40.1 7.8 A 23.7 69.0 32.4 6.7 Wt
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 28: Non-GAAP Financial Measures (continued)
28 Non-GAAP Financial Measures (continued) ACL to total loans, excluding government insured residential loans, PPP and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nomina
Slide 29: Non-GAAP Financial Measures
29 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