Bankunited, Inc. · NYSE:BKU
Bankunited — Q2 2024 Earnings Presentation
28 slides from Bankunited's earnings presentation, Jul 18, 2024
Slide 1: Q2 2024 – Supplemental Information
July 18, 2024 Q2 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 • Non-brokered deposits grew by $1.3 billion • NIDDA up $826 million; improved to 29% of deposits • Average NIDDA up $888 million • Total deposits
Slide 5: Topics of Current Interest
Topics of Current Interest Capital(1) • CET1 ratio 11.6% ; TCE/TA 7.4% • Book value and tangible book value per share grew to $36.11 and $35.07 Deposits and Funding • Non-brokered deposits grew $1.3 billion • Non-interest bearing DDA 29% of total deposits; up $826 million for the quarter • Total dep
Slide 6: Highlights from Second Quarter Earnings
Highlights from Second Quarter Earnings Change From ($ in millions, except per share data) Q2’24 Q1’24 Q2’23 Q1’24 Q2’23 Key Highlights Net Interest Income $226 $215 $214 $11 $12 5% QoQ growth in net interest income Provision for Credit Losses $20 $15 $16 $5 $4 Total Non-interest Income $24 $27 $25
Slide 7: Deposits
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Slide 8: Deposit Trends
Deposit Trends ($ in millions) $7,347 $4,807 $3,384 $4,268 $5,164 $5,116 $4,463 $10,622 $12,660 $13,369 $13,061 $11,136 $11,123 $11,463 $2,131 $3,020 $3,709 $2,142 $3,403 $3,548 $3,773 $4,295 $7,009 $8,976 $8,038 $6,835 $7,240 $8,065 $24,395 $27,496 $29,438 $27,509 $26,538 $27,027 $27,764 Non-intere
Slide 9: Cost of Funds Trend
Cost of Funds Trend 9 1.42% 0.36% 0.16% 1.92% 3.18% 3.17% 3.09% 1.75% 0.25% 0.25% 4.50% 5.50% 5.50% 5.50% Spot APY - Total Deposits Target Federal Funds Rate Upper Bound 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 06/30/24 (1.00)% —% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Spot Average Annual
Slide 10: Loans and the Allowance for Credit Losses
Loans and the Allowance for Credit Losses 10
Slide 11: Prudently Underwritten and Well-Diversified Loan Portfolio
11 Prudently Underwritten and Well-Diversified Loan Portfolio At June 30, 2024 ($ in millions) Loan Portfolio Over Time $5,661 $6,348 $8,368 $8,901 $8,209 $8,057 $7,845 $7,493 $6,896 $5,702 $5,700 $5,819 $5,839 $5,952 $6,718 $6,448 $6,735 $8,305 $8,907 $8,661 $9,136 $768 $1,259 $1,092 $525 $433 $456
Slide 12: High Quality CRE Portfolio
High Quality CRE Portfolio At June 30, 2024 ($ in millions) Property Type Balance % of Total CRE FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Office $ 1,791 30 % 58 % 24 % 18 % 1.59 65.8 % Warehouse/Industrial 1,295 22 % 58 % 9 % 33 % 2.02 50.4 % Multifamily 825 14 % 48 % 52 % — % 1.93 48.2 %
Slide 13: Manageable CRE Maturity Risk
Manageable CRE Maturity Risk At June 30, 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 Maturing in Next 12 mos. as a % of Total Portfolio Office $ 402 22 % $ 191 11 % Ware
Slide 14: CRE Peer Benchmarking
CRE Peer Benchmarking 14 35% 35% 24% Peer Median Peer Mean BankUnited, N.A —% 5% 10% 15% 20% 25% 30% 35% 40% 222% 216% 165% —% 50% 100% 150% 200% 250% 1. BKU information as of June 30, 2024 2. CRE peer median information based on March 31, 2024 Call Report data (most recent date available) for banks
Slide 15: CRE Office Portfolio - Additional Information
CRE Office Portfolio - Additional Information At June 30, 2024 15 • 17% or $309 million of the total office portfolio is medical office • Rent rollover in next 12 months approximately 9% of the total office portfolio; 10% for FL and 6% in NY Tri State • Manhattan stabilized portfolio has approximate
Slide 16: Granular, Diversified Commercial & Industrial Portfolio
Granular, Diversified Commercial & Industrial Portfolio At June 30, 2024 ($ in millions) Industry Balance(1) % of Portfolio Finance and Insurance $ 1,678 18.4 % Manufacturing 765 8.4 % Educational Services 736 8.1 % Health Care and Social Assistance 716 7.8 % Utilities 688 7.5 % Information 665 7.3
Slide 17: Drivers of Change in the ACL - Current Quarter
$217.6 $24.1 $(3.0) $(13.7) $12.3 $(11.6) $225.7 Drivers of Change in the ACL - Current Quarter ($ in millions) Risk Rating Migration and Specific Reserves Economic Forecast Net Charge- Offs ACL 06/30/24 ACL 03/31/24 0.92%0.90%% of Total Loans 17 Change in Qualitative Overlay Portfolio and Other • N
Slide 18: Allocation of the ACL
Allocation of the ACL ($ in millions) December 31, 2023 March 31, 2024 June 30, 2024 Balance % of Loans Balance % of Loans Balance % of Loans Commerical: Commercial real estate $ 41.3 0.71 % $ 61.1 1.05 % $ 69.9 1.17 % Commercial and industrial 142.4 1.60 % 140.0 1.62 % 143.2 1.57 % Franchise and eq
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% 0.70% 0.68% 0.80% 0.68% 0.26% 0.35% 0.32% 0.54% Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non
Slide 20: Non-Performing Loans by Portfolio Segment
Non-Performing Loans by Portfolio Segment ($ in millions) 20 $205 $244 $206 $105 $127 $116 $173 $19 $29 $29 $21 $21 $18 $16 $24 $60 $30 $51 $65 $43 $58 $22 $34 $30 $43 $35 $45 $33 $13 $24 $23 $19 $46 $51 $46 $40 $42 $40 $39 $16 $16 $10 $9 $6 $5 $5 Non-Guaranteed Portion of SBA Guaranteed Portion of
Slide 21: Criticized and Classified Loans
Criticized and Classified Loans ($ 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 06/30/24 $— $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/3
Slide 22: Criticized and Classified CRE Loans by Property Type
Criticized and Classified CRE Loans by Property Type ($ in millions) 22 March 31, 2024 $123 $55 $96 $292 $144 $3 $17 $116 $55 $89 $146 $77 $3 $16 December 31, 2023 $99 $54 $1 $93 $374 $152 $9 $17 Multifamily Hotel Industrial/Warehouse Retail Office Construction & Land Other SBA June 30, 2024 Constru
Slide 23: Asset Quality - Delinquencies
Asset Quality - Delinquencies ($ in millions) 23 Commercial(1) CRE 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 06/30/24 $— $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 06/30/24 $— $20 $40 $60 $80 $100 30-59 Days PD 60-89 Days PD 90 Days+ PD 12/3
Slide 24: Residential Portfolio Overview
Residential Portfolio Overview At June 30, 2024 24 Residential Loan Product Type FICO Distribution(1) Breakdown by LTV(1) 1. Excludes government insured residential loans. FICOs are refreshed routinely. LTVs are typically based on valuation at origination Prior 22% 2020 12% 2021 43% 2022 16% 2023 5%
Slide 25: Investment Portfolio
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Slide 26: High Quality, Short-Duration Securities Portfolio
High Quality, Short-Duration Securities Portfolio ($ in millions) December 31, 2023 March 31, 2024 June 30, 2024 Portfolio Net Unrealized Loss Fair Value Net Unrealized Loss Fair Value Net Unrealized Gain/(Loss) Fair Value US Government and Agency $ (115) $ 2,656 $ (110) $ 2,884 $ (97) $ 2,999 Priva
Slide 27: High Quality, Short-Duration Securities Portfolio
High Quality, Short-Duration Securities Portfolio At June 30, 2024 Strong credit enhancement levels - no SASB(1) exposure Private Label RMBS Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 1.3 92.0 17.8 2.2 AA 20.7 35.0 27.0 5.3 A 32.9 32.9 32.9 5.4 Wtd. Avg. 2.3 89.1 18.3 2.4 Pr
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures 28 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