Slide 1: Q4 2021 – Supplemental Information
January 20, 2022 Q4 2021 – 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: Financial Highlights
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Slide 4: Strong Quarterly Results; Improving Credit Metrics
Strong Quarterly Results; Improving Credit Metrics 4 Operating results Loans and Deposits Asset Quality Capital • Net income for the quarter of $125.3 million and EPS of $1.41 • Pre-tax income was reduced by notable items totaling $40.4 million • $69.1 million of tax benefits recognized for the quar
Slide 5: Highlights from Fourth Quarter Earnings
Highlights from Fourth Quarter Earnings 5 Key Highlights Q4 2021 includes a gain on sale of residential loans of $18 million. Includes $59 million in notable expense items. Impacted by $69 million in tax benefits Growth of over $1 billion in Q4 excluding PPP 28% YoY non-interest DDA growth; Non-inte
Slide 6: Notable Items Impacting Fourth Quarter Earnings
Notable Items Impacting Fourth Quarter Earnings 6 The following table details $40.4 million of notable items that impacted income before income taxes for the quarter ended December 31, 2021 (income (expense) in thousands): As previously reported, during the quarter ended December 31, 2021, the Bank
Slide 7: Transformed Deposit Mix
Transformed Deposit mix ($ in millions) 7 $6,335 $6,820 $7,347 $4,807 $3,229 $3,384 $10,715 $11,262 $10,622 $12,660 $12,460 $13,369 $1,758 $1,771 $2,131 $3,020 $3,269 $3,709 $3,071 $3,621 $4,295 $7,009 $9,158 $8,976$21,879 $23,474 $24,395 $27,496 $28,116 $29,438 12/31/17 12/31/18 12/31/19 12/31/20 9
Slide 8: Prudently Underwritten and Well-Diversified Loan Portfolio
Prudently Underwritten and Well-Diversified Loan Portfolio At December 31, 2021 ($ in millions) 8 Loan Portfolio Over Time CRE C&I Lending Subs Residential Loan Product Type $4,949 $5,661 $6,348 $7,827 $8,368 $7,501 $7,493 $6,896 $5,883 $5,702 $6,478 $6,718 $6,448 $6,179 $6,735 $782 $333 $249 $432 $
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 – Current Quarter
Drivers of Change in the ACL – Current Quarter 11 ACL 9/30/21 ACL 12/31/21 Net Portfolio Migration Portfolio and Assumption Changes Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 0.70% 0.53% • Risk rating migration • Changes in specific reserves • N
Slide 12: Drivers of Change in the ACL – Fiscal 2021
Drivers of Change in the ACL – Fiscal 2021 12 ACL 12/31/20 ACL 12/31/21 Net Portfolio Migration Portfolio and Assumption Changes Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 1.08% 0.53% • Risk rating migration • Changes in specific reserves • Chan
Slide 13: Allocation of the ACL
Allocation of the ACL 13 ($ in millions) (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $46.1 million, $49.1 million, and $51.3 million or 0.19%, 0.22%, and 0.22%, of total loans and 0.13%, 0.14%, and 0.15% of total assets, at December 30, 2021,
Slide 14: Loan Portfolio and Credit
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Slide 15: Loan Portfolio – Geographic Distribution
Loan Portfolio – Geographic Distribution At December 31, 2021 Commercial (1) Residential CRE (1) Includes PPP, MWL, BFG and Pinnacle FL 37% NY Tri-State Area 23% Other 40% 15 CA 33% FL 8% NY 20% Other 39% FL 58% NY Tri-State Area 33% Other 9%
Slide 16: Loan Portfolio – Granular, Diversified C&I Portfolio
16 Loan Portfolio – Granular, Diversified Commercial & Industrial Portfolio At December 31, 2021 ($ in millions) • Includes $1.9 billion of owner- occupied real estate • Some key observations: • Educational services – well established private colleges, universities and high schools • Transportation
Slide 17: Loan Portfolio – Commercial Real Estate by Property Type
Loan Portfolio – Commercial Real Estate by Property Type At December 31, 2021 Property Type Balance FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Non- Performing Office 1,810$ 60% 25% 15% 2.72 64.1% 1$ Multifamily 1,224 42% 53% 5% 2.09 59.2% 11 Retail 1,075 56% 35% 9% 1.75 70.2% 18 Warehouse/In
Slide 18: Loan Portfolio – Deferrals and Modifications
18 Loan Portfolio – Deferrals and Modifications At December 31, 2021 ($ in millions) • Loans subject to COVID related deferral or modification under the CARES Act totaled $205 million or 1% of the total loan portfolio at December 31, 2021. $11 million of these loans, all residential, were under shor
Slide 19: Loan Portfolio – Retail
Loan Portfolio – Retail At December 31, 2021 ($ in millions) Retail - Commercial Real Estate • No significant mall or “big box” exposure Retail – Commercial & Industrial 19 Property Type Balance Short-Term Deferral or CARES Modification Non-Performing Loans Special Mention Classified Retail - Anchor
Slide 20: Loan Portfolio – BFG Franchise Finance
Loan Portfolio – BFG Franchise Finance At December 31, 2021 ($ in millions) Portfolio Breakdown by Concept Portfolio Breakdown by Geography CA 24% TX 10% UT 7% GA 7% CO 7% Other 45% 20 Balance % of BFG Franchise Short-Term Deferral or CARES Modification Non-Performing Loans Special Mention Classifie
Slide 21: Loan Portfolio – Hotel
Loan Portfolio – Hotel At December 31, 2021 ($ in millions) • 82% of our exposure is in Florida, followed by 10% in New York • Includes $48.6 million in SBA loans • All hotel properties in FL and NY remain open • Decline of $67 million of hotel CARES Act modifications during Q4 Exposure by Flag Marr
Slide 22: Credit Quality – Residential
Credit Quality – Residential At December 31, 2021 High quality residential portfolio consists of primarily prime jumbo mortgages with de-minimis charge- offs since inception as well as fully government insured assets FICO Distribution(1) Breakdown by LTV(1) Breakdown by Vintage(1) (1) Excludes gover
Slide 23: Asset Quality Metrics
Asset Quality Metrics Non-performing Loans to Total Loans Non-performing Assets to Total Assets Net Charge-offs to Average Loans(1) (1) YTD net charge-offs, annualized at September 30, 2021. 0.88% 1.02% 1.21% 0.87% 0.68% 0.80% 0.99% 0.68% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 9/30/21
Slide 24: Non-Performing Loans by Portfolio Segment
Non-Performing Loans by Portfolio Segment ($ in millions) (1) Includes the guaranteed portion of non-accrual SBA loans totaling $46.1 million, $49.1 million, $51.3 million, and $45.7 million at December 31, 2021, September 30, 2021, December 31, 2020, and December 31, 2019, respectively. $19 $29 $33
Slide 25: Criticized and Classified Loans
Criticized and Classified Loans ($ in millions) Commercial Real Estate Commercial & Industrial (1) Franchise Finance(3) Equipment Finance SBA(2) (1) Substandard non-accruing and doubtful includes $27.8 million and $16.4 million of loans rated doubtful at December 31, 2021 and September 30, 2021, res
Slide 26: Criticized and Classified – CRE by Property Type
Criticized and Classified – CRE by Property Type ($ 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 $35
Slide 27: Criticized and Classified – BFG Franchise Finance
Criticized and Classified – BFG Franchise Finance ($ in millions) Restaurant Concepts(1) Fitness Concepts Other $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 9/30/21 12/31/21 $0 $20 $40 $60 $80 $100 $120 $140 $160 12/31/19 12/31/20 9/30/21 12/31/21 $0 $20 $40 $60 $80 $100 $120 $140 $160 1
Slide 28: Asset Quality – Delinquencies
Asset Quality – Delinquencies ($ 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 9/30/21 12/31/21 $0 $20 $40 $60 $80 $100 $120 $140 12/31/19 12/31/20 9/30/21 12/31/
Slide 29: Investment Portfolio
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Slide 30: Investment Securities AFS
30 Investment Securities AFS ($ in thousands) Portfolio Composition Ratings Distribution Gov 33% AAA 58% AA 7% A 2% US Government and agency 33% Private label RMBS and CMOs 22% Private label CMBS 25% Residential real estate lease- backed securities 5% CLO 11% State Municipal Obligations 2% Other 2%
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 32: Non-GAAP Financial Measures
32 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
Slide 33: Non-GAAP Financial Measures (continued)
33 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