Bankunited, Inc. · NYSE:BKU
Bankunited — Investor Presentation (February 2012)
32 slides from Bankunited's investor presentation, Feb 29, 2012
Slide 1: BankUnited, Inc. February 29, 2012
BankUnited, Inc. February 29, 2012
Slide 2: 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” or “BKU”) with respect to, among other things, future events and financial performance. BankUnited general
Slide 3: Why BankUnited?
@ w& BankUnited Why BankUnited?
Slide 4: The BankUnited Value Proposition
Clean Balance Sheet The BankUnited Value Proposition 4 Dynamic Growth Story Management Team with Strong Track Record Strong Performance and Capital Position Healthy Regulatory Relations The Dominant Florida Institution
Slide 5: Who are we?
@ & BankUnited Who are we?
Slide 6: Overview of BankUnited
Overview of BankUnited 6 Company Snapshot The largest traditional independent bank in Florida (1) 95 branches $11.3 billion of assets $4.1 billion of loans $7.4 billion of total deposits $174 million of net income in 2011 (2) Acquiring 3 New York branches with the Herald National Bank transaction on
Slide 7: FDIC Loss Sharing Agreements Overview
Agreements to cover approximately $11.6 billion of acquired assets The FDIC bears 80% of the first $4.0 billion in losses (“Stated Threshold”) 95% of the losses above the Stated Threshold Summary Ability to sell approximately $280 million of loans (UPB) on an annual basis without FDIC consent No res
Slide 8: FDIC Loss Share Agreement Current Status
(1) Carrying value includes covered loans, OREO, and the FDIC indemnification asset. Excludes $184 million (unamortized cost basis) investment securities also covered by the Loss Sharing Agreements. (2) Assumes worst case scenario of a 100% credit loss on all covered loans and OREO and no interest i
Slide 9: What have we accomplished?
@ & BankUnited What have we accomplished?
Slide 10: Milestones Accomplished to Date
Restructured Management and Changed Company Culture Milestones Accomplished to Date 10 Invested Significant Capital into Systems and Physical Infrastructure Built Commercial Banking Platform through Team Acquisitions Acquired 2 Leasing Platforms and Herald National Bank Completed $900 million IPO Ap
Slide 11: Transformed Loan Portfolio
Transformed Loan Portfolio $ in millions(1) New Loans Legacy Loans and FDIC Asset $11.4 $10.0 $7.9 $5.9 UPB of Covered Loans and OREO ($BN) 11 (1) Balances exclude unearned discount and deferred fees and costs, net. $3,443 $3,279 $2,667 $2,049 $178 $120 $207 $124 $4,239 $3,820 $2,878 $2,054 $777 $70
Slide 12: Our New Loan Growth has Outpaced Legacy Asset Runoff
Our New Loan Growth has Outpaced Legacy Asset Runoff Passed Inflection Point in 3Q 2011 and Have Been Experiencing Net Loan Growth (1) ($ in millions) 12 (1) Balances exclude unearned discount and deferred fees and costs, net. $549 $606 $909 $1,291 $1,738 $2,667 $2,427 $2,253 $2,108 $2,049 $3,431 $3
Slide 13: Transformed Deposit Base
Transformed Deposit Base $ in millions Deposits (1) May 31, 2009 December 31, 2009 December 31, 2010 December 31, 2011 $8,181 $7,582 $7,125 $7,325 Cost of Deposits (2) 3.46% 2.18% 1.39% 0.90% Demand Interest Checking Money Market Savings Time Deposits 13 (1) Data excludes official checks. (2) Cost o
Slide 14: Commercial Deposits Growth
Commercial Deposits Growth $ in millions 14 1.0% 0.4% Declining cost of Commercial Deposits May 31, 2009 December 31, 2009 December 31, 2010 December 31, 2011 $249 $420 $886 $1,470 Demand Interest Checking Money Market Savings
Slide 15: Franchise Dramatically Enhanced
Franchise Dramatically Enhanced Old Face Prior to Transformation 15
Slide 16: Franchise Dramatically Enhanced
16 Franchise Dramatically Enhanced Old Face Prior to Transformation
Slide 17: Franchise Dramatically Enhanced
17 Franchise Dramatically Enhanced West Palm Beach 600 N Dixie Highway
Slide 18: Franchise Dramatically Enhanced
18 Franchise Dramatically Enhanced Boca Raton 7028 W Palmetto Park Road
Slide 19: Franchise Dramatically Enhanced
19 Franchise Dramatically Enhanced West Palm Beach 600 N Dixie Highway
Slide 20: Franchise Dramatically Enhanced
20 Franchise Dramatically Enhanced Boca Raton 7028 W Palmetto Park Road
Slide 21: How do we compare?
@ & BankUnited How do we compare?
Slide 22: How Do We Compare? Returns, Margin and Leverage
How Do We Compare? 22 2011 Return on Avg Assets 2011 Return on Avg Equity 2011 Net Interest Margin Tier 1 Leverage 0.8% 1.6% 7.4% 11.9% 3.6% 6.1% 9.3% 10.8% (1) (1) (1) (1) Source: SNL Financial. Financial data as of December 31, 2011 or most recent available. (1) Peers include publicly traded U.S.
Slide 23: How Do We Compare? Price to Earnings and Book
How Do We Compare? 23 18x 14x 15x 14x 1.52x 1.54x Price / 2012E EPS Price / 2013E EPS Price / Current Tang Book Peers(1) BKU BKU BKU Source: SNL Financial. Market data as of February 24, 2012. Financial data as of December 31, 2011 or most recent available. (1) Peers include publicly traded U.S. ban
Slide 24: Change in Analysts' Earnings Expectations
Change in Analysts’ Earnings Expectations 24 %Chg of 2012 EPS Estimate since March 2011(1) (2) Source: Factset. Data as of February 24, 2012. (1) Date when analysts initiated research coverage of BKU. (2) Peers include publicly traded U.S. banks and thrifts with assets between $10-25 billion as of D
Slide 25: Where are we headed?
@ & BankUnited Where are we headed?
Slide 26: Looking Ahead: Where Are We Headed?
Looking Ahead Where Are We Headed? 26 Continue focus on small business and middle market customers in Florida Further develop the consumer segment and diversify into select consumer asset classes Launch New York with a commercial focus Maintain trajectory of loan growth Continue focus on lowering co
Slide 27: Continued Reconstruction of Branch Network
By Property Type 85 77 81 95 105 85 77 81 95 105 Legacy vs. New 27 Continued Reconstruction of Branch Network
Slide 28: Acquisition of Herald
(1) Data as of December 31, 2011. (2) Based on financial and market data at the time of announcement. Loan Portfolio: $305mm(1) Anticipated closing February 29, 2012 Clean loan portfolio Herald operates under similar business model Provides platform for market entry into New York Deposit Portfolio:
Slide 29: The BankUnited Value Proposition
The BankUnited Value Proposition
Slide 30: The BankUnited Value Proposition
Clean Balance Sheet The BankUnited Value Proposition 30 Dynamic Growth Story Management Team with Strong Track Record Strong Performance and Capital Position Healthy Regulatory Relations The Dominant Florida Institution
Slide 31: BankUnited, Inc. February 29, 2012
BankUnited, Inc. February 29, 2012
Slide 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 32 Year Ended (Dollars in thousands) December 31, 2011 Net income 63,168 $ Add: equity based compensation charge recorded in conjunction with the IPO 110,398 Net income excluding the non-recurring equity based compensation charge 173,566 $ Average total