Bankunited, Inc. · NYSE:BKU
Bankunited — Q4 2024 Earnings Presentation
31 slides from Bankunited's earnings presentation, Jan 22, 2025
Slide 1: Q4 2024 – Supplemental Information
Q4 2024 – Supplemental Information January 22, 2025 1
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: Near-term Strategic Priorities Scorecard
Near-term Strategic Priorities Scorecard • For the quarter ended December 31, 2024: ◦ Average NIDDA grew by $173 million, $648 million compared to Q4 2023 1 Improve Funding Profile • For the year ended December 31, 2024: ◦ Non-brokered deposits grew by $1.4 billion ◦ NIDDA grew by 11% or $781 millio
Slide 5: Highlights from Fourth Quarter Earnings
Highlights from Fourth Quarter Earnings Change From ($ in millions, except per share data) Q4’24 Q3’24 Q4’23 Q3’24 Q4’23 Key Highlights Net Interest Income $239 $234 $217 $5 $22 10% growth in net interest income over Q4 one year ago Provision for Credit Losses $11 $9 $19 $2 ($8) Total Non-interest I
Slide 6: Key Profitability Metrics Steadily Improving
Key Profitability Metrics Steadily Improving Q4’2023 Q1’2024 Q2’2024 Q3’2024 Q4’2024 EPS, as reported $ 0.27 $ 0.64 $ 0.72 $ 0.81 $ 0.91 (2) EPS, adjusted $ 0.62 Net interest margin(1) 2.60 % 2.57 % 2.72 % 2.78 % 2.84 % Return on average assets, as reported(1) 0.23 % 0.54 % 0.61 % 0.69 % 0.78 % Retu
Slide 7: Deposits
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Slide 8: Deposit Trends
Deposit Trends ($ in millions) $29,438 $27,496 $27,509 $27,856 $27,866 $26,538 $24,395 $7,009 $8,976 $7,635 $7,616 $8,038 $6,835 $4,295 $2,131 $3,020 $3,709 $2,142 $3,403 $5,172 $4,893 Non-interest Demand Interest Demand $10,622 Money Market / Savings $12,660 $13,061 $11,136 $13,369 $10,325 $11,056
Slide 9: Cost of Funds Trend
Cost of Funds Trend Spot Average Annual At December At December At December At December At December At September 30, At December 31, Percentage Yield (“APY”) 31, 2019 31, 2020 31, 2021 31, 2022 31, 2023 2024 2024 Total non-maturity deposits 1.11% 0.29% 0.14% 1.83% 2.87% 2.61% 2.37% Total interest-be
Slide 10: Loans and the Allowance for Credit Losses
Loans and the Allowance for Credit Losses 10
Slide 11: Prudently Underwritten and Well-Diversified Loan Portfolio
Prudently Underwritten and Well-Diversified Loan Portfolio At December 31, 2024 ($ in millions) Loan Portfolio Over Time $24,886 $24,634 $24,399 $24,298 $23,866 $23,765 $23,155 $1,455 $1,266 $1,028 $935 $525 $433 $572 $586 $1,868 $2,915 $2,515 $1,092 $768 $1,259 $8,305 $8,907 $9,025 $8,982 $6,735 $6
Slide 12: High Quality CRE Portfolio
High Quality CRE Portfolio At December 31, 2024 ($ in millions) % of Total Wtd. Avg. Wtd. Avg. Property Type Balance CRE FL NY Tri State Other DSCR LTV Office $ 1,769 28 % 57 % 23 % 20 % 1.57 65.2 % Warehouse/Industrial 1,375 22 % 54 % 8% 38 % 1.83 47.2 % Multifamily 838 13 % 51 % 49 % —% 2.01 50.1
Slide 13: Manageable CRE Maturity Risk
Manageable CRE Maturity Risk At December 31, 2024 ($ in millions) Just 11% of total CRE portfolio fixed and maturing in the next 12 months Fixed Rate to Fixed Rate or Borrower Swapped Maturing in Next Maturing in the % Maturing in the Maturing in the 12 mos. as a % of Property Type Next 12 Months Ne
Slide 14: CRE Peer Benchmarking
CRE Peer Benchmarking CRE / Total Loans(1)(2) CRE / Total Risk Based Capital(1)(2) 40% 250% 35% 222% 35% 34% 209% 200% 30% 169% 26% 25% 150% Peer Median 20% Peer Mean BankUnited, N.A 100% 15% 10% 50% 5% —% —% 1. BKU information as of December 31, 2024 2. CRE peer median information based on Septembe
Slide 15: CRE Office Portfolio - Additional Information
CRE Office Portfolio - Additional Information At December 31, 2024 NY Tri-State by Sub-Market 4% 1% • 20% or $350 million of the total office portfolio is medical office 12% Manhattan NY Tri-State Other • Rent rollover in next 12 months 41% Long Island approximately 12% of the total office 21% Queen
Slide 16: Granular, Diversified Commercial & Industrial Portfolio
Granular, Diversified Commercial & Industrial Portfolio At December 31, 2024 ($ in millions) Geographic Distribution Industry Balance(1) % of Portfolio Finance and Insurance $ 1,532 17.1 % Manufacturing 855 9.5 % Utilities 708 7.9 % Health Care and Social Assistance 705 7.8 % Educational Services 68
Slide 17: Drivers of Change in the ACL - Current Quarter
Drivers of Change in the ACL - Current Quarter ($ in millions) Risk Rating Migration and Specific Economic Portfolio and Change in Reserves Forecast Net Charge- Other Qualitative $2.5 Offs Overlay $8.7 $228.2 $0.1 $1.1 $223.2 • Current $(17.4) • New loans market net of adjustment • Substantially rep
Slide 18: Drivers of Change in the ACL - Year to Date
Drivers of Change in the ACL - Year to Date ($ in millions) Risk Rating Migration and Specific Economic Change in Reserves Forecast Qualitative $40.7 Net Charge- Overlay Offs Assumption Portfolio and Changes $17.1 $223.2 Other $(15.8) $7.4 $202.7 $9.6 • Current • CRE office market $(38.5) • Economic
Slide 19: Allocation of the ACL
Allocation of the ACL ($ in millions) December 31, 2023 September 30, 2024 December 31, 2024 Balance % of Loans Balance % of Loans Balance % of Loans Commerical: Commercial real estate $ 41.3 0.71 % $ 61.3 1.02 % $ 70.5 1.13 % Commercial and industrial 142.4 1.60 % 151.4 1.68 % 138.0 1.54 % Franchis
Slide 20: Asset Quality Metrics
Asset Quality Metrics Non-Performing Loans to Total Loans Non-Performing Assets to Total Assets Incl. guaranteed portion of non-accrual SBA loans Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 1.25
Slide 21: Non-Performing Loans by Portfolio Segment
Non-Performing Loans by Portfolio Segment ($ in millions) $251 $244 $4 $16 $224 $34 $4 $205 $206 $6 $51 $10 $35 $16 $16 $46 $46 Non-Guaranteed Portion of SBA $97 $45 Guaranteed Portion of SBA Franchise and Equipment $33 $127 C&I $35 $6 $87 CRE $43 $105 Residential and Other Consumer $9 $42 $58 $65 $
Slide 22: Criticized and Classified Loans
Criticized and Classified Loans ($ in millions) Commercial Real Estate(1) $1,000 $900 $800 $700 $600 $500 Special Mention $400 Substandard Accruing $300 Substandard Non-accruing and Doubtful $200 $100 $— 9 0 1 2 3 4 4 1 /1 1 /2 1 /2 1 /2 1 /2 0 /2 1 /2 /3 /3 /3 /3 /3 /3 /3 12 12 12 12 12 09 12 Comme
Slide 23: Criticized and Classified CRE Loans by Property Type
Criticized and Classified CRE Loans by Property Type ($ in millions) December 31, 2024 $3 $14 Multifamily $17 Hotel $128 $138 Industrial/ $47 Warehouse Retail Office $101 Construction $340 Construction and land category includes & Land $85 million of office exposure at 12/31/2024 Other SBA September
Slide 24: Asset Quality - Delinquencies
Asset Quality - Delinquencies ($ in millions) Commercial(1) CRE $100 $100 $80 $80 $60 $60 $40 $40 $20 $20 $— $— 19 20 21 22 23 24 24 19 20 21 22 23 24 24 3 1/ 3 1/ 3 1/ 3 1/ 3 1/ 3 0/ 3 1/ 3 1/ 3 1/ 3 1/ 3 1/ 3 1/ 3 0/ 3 1/ 1 2/ 1 2/ 1 2/ 1 2/ 1 2/ 0 9/ 1 2/ 1 2/ 1 2/ 1 2/ 1 2/ 1 2/ 0 9/ 1 2/ Reside
Slide 25: Residential Portfolio Overview
Residential Portfolio Overview At December 31, 2024 Residential Loan Product Type FICO Distribution(1) <720 or NA 10% Formerly Govt Covered Insured 1% 14% 30 Yr Fixed High quality 34% residential 5/1 & 7/1 ARM 720-759 14% portfolio consists 27% primarily of high 10/1 >759 FICO, low LTV, ARM 12% 15 &
Slide 26: Investment Portfolio
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Slide 27: High Quality, Short-Duration Securities Portfolio
High Quality, Short-Duration Securities Portfolio ($ in millions) • No expected credit losses on AFS securities • Unrealized losses just 4% of amortized cost • AFS portfolio duration of 1.85; approximately 69% of the portfolio floating rate • No HTM securities December 31, 2023 September 30, 2024 De
Slide 28: High Quality, Short-Duration Securities Portfolio
High Quality, Short-Duration Securities Portfolio At December 31, 2024 Strong credit enhancement levels - no SASB(1) exposure A NR Private Label RMBS AA 1% 2% 5% Subordination Wtd. Avg. Stress Scenario Rating Min Max Avg. Loss AAA 3.0 92.5 17.9 2.2 AA 21.0 37.8 28.9 5.4 AAA A 21.3 21.3 21.3 8.2 92%
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures 29
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures Net income and earnings per diluted share, excluding the impact of the FDIC special assessment are non-GAAP financial measures. Disclosure of these measures enhance the reader’s ability to compare the Company’s performance for the quarter ended December 31, 2023 to other
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on average assets and return on average stockholders’ equity excluding the impact of the FDIC special assessment are non-GAAP financial measures. Disclosure of these measures enhance the reader’s ability to compare the Company’s performance for the quarter ended De