Bankunited, Inc. · NYSE:BKU
Bankunited — Q4 2022 Earnings Presentation
25 slides from Bankunited's earnings presentation, Jan 19, 2023
Slide 1: Q4 2022 – Supplemental Information
January 19, 2023 Q4 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 $64.2 million and EPS of $0.82 • PPNR of $121.4 million for Q4, compared to $120.8 million in Q3 and $63.8 million in Q4’21(1) • Provision for credit losses of $39.6 million for Q4 - reser
Slide 5: Highlights from Fourth Quarter Earnings
Highlights from Fourth Quarter Earnings 5 (1) Includes guaranteed portion of non-accrual SBA loans. (2) Annualized for the period ended September 30, 2022. (3) PPNR is a non-GAAP financial measure. See section entitled “Non-GAAP Financial Measures” on page 25. Key Highlights Reserve build due primar
Slide 6: Continued Strategic Focus - Transforming Deposit Base
Continued Strategic Focus - Transforming Deposit Base ($ in millions) 6 2022 presented a challenging environment for deposit growth Quarterly Cost of Deposits 0.94% 1.52% 1.48% 0.43% 0.19% 1.42% Non-interest bearing as % of Total Deposits 14.0% 15.4% 17.6% 25.5% 30.5% 29.2% Spot Average Annual Perce
Slide 7: Prudently Underwritten and Well-Diversified Loan Portfolio
Prudently Underwritten and Well-Diversified Loan Portfolio At December 31, 2022 ($ in millions) 7 Loan Portfolio Over Time (1) Includes lending subs and PPP. PPP totaled $782 million, $249 million, $10 million, and $3 million at December 31, 2020, December 31, 2021, September 30, 2022 and December 3
Slide 8: Allowance for Credit Losses
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Slide 9: Drivers of Change in the ACL – Current Quarter
Drivers of Change in the ACL – Current Quarter 9 ACL 9/30/22 ACL 12/31/22 Assumption Changes Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 0.54% 0.59% • Portfolio seasoning • Changes in borrower financial condition • Risk rating migration • Current
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 $40.3 million, $41.8 million, and $46.1 million or 0.16%, 0.17%, and 0.19% of total loans and 0.11%, 0.11%, and 0.13% of total assets at December 31, 2022, Se
Slide 11: Loan Portfolio and Credit
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Slide 12: Granular, Diversified Commercial & Industrial Portfolio
12 Granular, Diversified Commercial & Industrial Portfolio At December 31, 2022 (1) Includes $1.9 billion of owner-occupied real estate (2) Excludes PPP loans ($ in millions) Industry Balance(1)(2) % of Portfolio Finance and Insurance 1,792$ 21.6% Educational Services 751 9.0% Manufacturing 647 7.8%
Slide 13: Commercial Real Estate by Property Type
13 Commercial Real Estate by Property Type At December 31, 2022 ($ in millions) Property Type Balance FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Office 1,875$ 59% 22% 19% 1.75 64.3% Warehouse/Industrial 1,217 62% 18% 20% 2.05 52.6% Multifamily 945 48% 52% - 2.13 45.9% Retail 870 64% 27% 9% 1
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 14 0.88% 1.02% 0.87% 0.42% 0.68% 0.80% 0.68% 0.26% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 12/31/21 12/31/22 Incl. guaranteed por
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 $40.3 million, $46.1 million, $51.3 million, and $45.7 million at December 31, 2022, 2021, 2020 and 2019, respectively. 15 $19 $29 $29 $21 $24 $60 $30 $65 $43 $58 $22 $21 $
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 $0.6 million, $25.5 million, and $27.8 million of loans rated doubtful at December 31, 2022, September 3
Slide 17: Asset Quality – Delinquencies
Asset Quality – Delinquencies ($ in millions) Commercial (1) CRE Residential (2) (1) Includes lending subsidiaries, excludes PPP loans (2) Excludes government insured residential loans 17 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12/31/21 9/30/22 12/31/22 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12
Slide 18: Residential Portfolio Overview
Residential Portfolio Overview At December 31, 2022 High quality residential portfolio consists primarily of prime jumbo mortgages with de- minimis charge-offs since inception as well as fully government insured assets FICO Distribution(1) Breakdown by LTV(1) Breakdown by Vintage(1) (1) Excludes gov
Slide 19: Investment Portfolio
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Slide 20: Investment Securities AFS
20 Investment Securities AFS ($ in thousands) Portfolio Composition Ratings Distribution NR 1% Gov 28% AAA 61% AA 7% A 3% US Government and agency 28% Private label RMBS and CMOs 26% Private label CMBS 26% Residential real estate lease- backed securities 6% CLO 12% State Municipal Obligations 1% Oth
Slide 21: Investment Securities – Asset Quality of Select Non-Agency Securities
21 Investment Securities – Asset Quality of Select Non-Agency Securities At December 31, 2022 Strong credit enhancement levels Private Label RMBS Private Label CMBS CLOs AAA 94% AA 1% A 5% AAA 85% AA 11% A 4% AAA 79% AA 17% A 4% Rating Min Max Avg AAA 3.0 98.2 17.5 2.3 AA 18.9 33.2 24.0 5.3 A 22.1 2
Slide 22: Recognitions and Rankings
Recognitions and Rankings 22 Springbuk, October 2022 100 Healthiest Workplaces in America,#3 Superior rating by BauerFinancial consecutively since its inception Newsweek, March 2022 #4 America’s Most Trusted Companies (Banking), Comprehensive Innovation Ranking by Customers for products, conduct, ci
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 24: Non-GAAP Financial Measures – PPNR
24 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 25: Non-GAAP Financial Measures – Tangible Book Value
25 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