Bankunited, Inc. · NYSE:BKU
Bankunited — Q1 2020 Earnings Presentation
27 slides from Bankunited's earnings presentation, Apr 29, 2020
Slide 1: Q1 2020 – Supplemental Information
Exhibit 99.2 BankUnited, Inc. Q1 2020 – Supplemental Information April 29, 2020
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: Our Response to the Pandemic
Our Response to the Pandemic • Provided access to branches while taking steps to protect customers and employees; 76% of branches moved to drive-through or lobby appointments only Supporting our • Digital solutions have helped to minimize business disruption • Customers Provided short-term funding f
Slide 4: Our Strong Capital Position
Our Strong Capital Position We are entering this cycle from a position of strength and believe we are well positioned to withstand a severe downtown. ($ in millions) • We stressed our March 31, 2020 portfolio using both the 2018 DFAST and 2020 DFAST severely adverse scenarios. Actual ACL and 2018 DF
Slide 5: We Have Ample Liquidity
We Have Ample Liquidity • Available liquidity has Key Liquidity Ratios 12/31/19 3/31/20 4/21/20 remained stable leading up 30 Day Liquidity Ratio 1.8x 1.4x 1.6x to and through the period of the pandemic Loans to Deposits 95.1% 92.8% 94.7% • Deposits grew by $606 Wholesale Funding / Total Assets 25.3
Slide 6: Trended Deposit Portfolio
Trended Deposit Portfolio Continuing to focus on transforming our deposit mix; NIDDA has grown 27% since December 31, 2018 ($ in millions) $28,000 $26,000 $25,001 $24,395 $23,679 $23,922 $23,956 $24,000 $23,474 Non- interest $4,295 $4,599 $22,000 $3,621 $3,765 $4,099 $4,127 Demand $20,000 Interest $
Slide 7: Reducing Cost of Deposits
Reducing Cost of Deposits We have consistently priced down our deposit portfolio since the Fed began lowering interest rates in late 2019. Spot Average Annual Percentage Yield At December 31, 2019 At March 31, 2020 At April 17, 2020 (“APY”) Total non-maturity deposits 1.11% 0.83% 0.54% Total interes
Slide 8: CECL Impacted by the Pandemic
CECL Impacted by the Pandemic CECL Methodology Underlying Principles Reasonable & Supportable Forecast Key Variables • The ACL under CECL represents • Our ACL estimate was informed • The models ingest numerous management’s best estimate at primarily by the Mid-Cycle national, regional and MSA level
Slide 9: Drivers of Change in the ACL under CECL
Drivers of Change in the ACL under CECL ($ in millions) Economic Forecast Changes in Portfolio and Specific Assumption Reserves Day 1 Changes Adjustment • Changes in the • Majority reasonable • New loans related to and • Exits/runoff franchise supportable • Portfolio finance economic seasoning • Exa
Slide 10: Allocation of the Allowance for Credit Losses (ACL)
Allocation of the Allowance for Credit Losses (ACL) ($ in millions) Allowance for Credit Losses Allowance for Credit Losses January 1, 2020 March 31, 2020 Total % of Loans Total % of Loans Residential and other consumer $ 19.3 0.34% $ 12.6 0.22% Commercial: Commercial real estate 16.7 0.22% 40.8 0.5
Slide 11: Prudently underwritten and well-diversified $23 billion loan portfolio
Loan Portfolio At March 31, 2020 Prudently underwritten and well-diversified $23 billion loan portfolio ($ in millions) OOCRE (2) $1,918 8% Non-OOCRE (2) $4,923 Const and Land (2) 21% $207 Residential Commercial 1% $5,635 $17,549 24% 76% C&I (2) (3) Multi-Family $4,941 $1,968 21% 9% MWL $852 BFG- Eq
Slide 12: Granular, Diversified Commercial & Industrial Portfolio
Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio At March 31, 2020 ($ in millions) • Includes $2.1 billion of owner- occupied real estate Industry Balance(1) Commitment % of Portfolio • Some key observations: Finance and Insurance $ 1,263 $ 1,865 18.0% • Educational services
Slide 13: Commercial Real Estate (Breakdown by Property Type)
Loan Portfolio – Commercial Real Estate (Breakdown by Property Type) At March 31, 2020 ($ in millions) Property Type Balance Commitment Wtd. Avg. DSCR Wtd. Avg. LTV % of Portfolio Office $ 2,074 $ 2,154 1.90 59.0% 28.8% Multifamily 2,073 2,187 1.65 56.4% 28.9% Retail 1,447 1,454 1.76 57.5% 20.2% War
Slide 14: Modifications Summary
Loan Portfolio – Modifications Summary Through April 20, 2020 ($ in millions) REQUESTS RECEIVED APPROVED • Granted extensions, deferrals, Count UPB % of Portfolio Count UPB % of Portfolio and forbearance to customers CRE - Property Type: impacted by COVID-19 Hotel 30 $505 90% 30 $505 90% Retail 83 5
Slide 15: Paycheck Protection Program (PPP)
Loan Portfolio – Paycheck Protection Program (PPP) Through April 24, 2020 We have made a concerted effort to help our existing customers obtain a PPP loan Intake Phase I Phase II • Began accepting intake forms • During Phase I of PPP, of the • For Phase II of PPP, anticipate from customers on April
Slide 16: Segments Identified for Heightened Monitoring
Loan Portfolio – Segments Identified for Heightened Monitoring At March 31, 2020 Moderate exposure to sectors most impacted by the pandemic ($ in millions) Criticized/ Segments of Interest Balance % of Total Loans Non Performing Pass Rated Classified Retail - CRE $ 1,447 6.2% $ 36 $ 11 98% Retail -
Slide 17: Retail
Loan Portfolio – Retail At March 31, 2020 ($ in millions) Retail - Commercial Real Estate Property Type Balance Key observations on the CRE segment: Retail - Unanchored $ 696 • No significant mall or “big box” Retail - Anchored 690 exposure Restaurant 28 • We estimate that Gas station 26 approximate
Slide 18: BFG Franchise Finance
Loan Portfolio – BFG Franchise Finance At March 31, 2020 ($ in millions) Portfolio Breakdown by Concept Restaurant Concepts Balance %of BFG Franchise • Fitness concepts may be under Burger King $ 67.1 10% Dunkin' Donuts 39.4 6% added stress due to social Sonic 27.9 4% distancing measures arising Dom
Slide 19: Hotel
Loan Portfolio – Hotel At March 31, 2020 ($ in millions) Exposure by Flag • This sector is experiencing significant disruption and declines in revenue due to Other COVID-19 and social distancing Sheraton $89 Marriott measures $39 14% $171 • 77% of our exposure is in 6% 28% Florida, followed by 13% i
Slide 20: BFG Energy Exposure
Loan Portfolio – BFG Energy Exposure At March 31, 2020 ($ in millions) BFG Energy Portfolio • Our energy exposure is modest Balance • Assets in the operating lease Operating leases $ 291.3 Loan/Finance Lease 46.3 portfolio have useful lives that Total $ 337.6 span multiple economic cycles • Railcar
Slide 21: Residential
Loan Portfolio – Residential At March 31, 2020 High quality residential portfolio consists of primarily prime jumbo mortgages with de-minimis charge-offs since inception as well as fully government insured assets Product Type FICO Distribution(1) Formerly Covered Govt 30 Yr <719 or 3% Insured Fixed
Slide 22: Asset Quality – Non-Performing Asset Trends
Asset Quality – Non-Performing Asset Trends At March 31, 2020 Non-performing loans to total loans(1) Non-performing assets to total assets(1) Net charge-offs to average loans(2) 1.00% Guaranteed portion of non-accrual SBA loans 0.88% 0.85% 0.20% 0.75% 0.21% 0.63% 0.59% 0.61% 0.14% 0.08% 0.15% 0.50%
Slide 23: Asset Quality – Criticized and Classified Commercial Loans
Asset Quality – Criticized and Classified Commercial Loans At March 31, 2020 ($ in millions) Commercial Real Estate Commercial & Industrial Special Mention Substandard Accruing $226.2 Substandard Non-accruing Doubtful $170.0 $107.6 $108.3 $106.8 $89.6 Dec 31, 2018 Dec 31, 2019 Mar 31, 2020 Dec 31, 2
Slide 24: Asset Quality – Non-Performing Loans by Portfolio Segment
Asset Quality – Non-Performing Loans by Portfolio Segment At March 31, 2020 ($ in millions) $205 $198 $62 $64 $130 $14 $21 $38 $34 $5 $12 $17 $65 $29 $50 $24 $38 $17 $19 $17 $7 December 31, 2018 December 31, 2019 March 31, 2020 Residential CRE C&I Equipment Franchise SBF(1) (1) Includes the guarante
Slide 25: Asset Quality – Delinquencies
Asset Quality – Delinquencies At March 31, 2020 Delinquencies have not increased materially since March 31, 2020, helped by modifications ($ in millions) 30-59 Days PD $29.8 Dec 31, 2018 60-89 Days PD $5.5 90 Days+ PD $30.1 30-59 Days PD $63.2 Dec 31, 2019 60-89 Days PD $21.7 90 Days+ PD $105.9 30-5
Slide 26: Investment Securities AFS
Investment Securities AFS No credit losses expected on the $7.8 billion portfolio; unrealized losses attributable primarily to widening spreads - valuations have started to recover since March 31, 2020 ($ in millions) Portfolio Composition Ratings Distribution Other US govt Not rated State and 3% 1%
Slide 27: Investment Securities – Asset Quality of Select Non-Agency Securities
Investment Securities – Asset Quality of Select Non-Agency Securities At March 31, 2020 Strong credit enhancement levels on CLOs and CMBS A Collateralized Loan Obligations (CLOs) 3% AA Subordination Wtd. Avg. 12% Rating Min Max Avg Stress Scenario Loss AAA 36.03 48.09 42.06 21.00 AA 27.77 40.29 34.0