Bankunited, Inc. · NYSE:BKU
Bankunited — Q3 2024 Earnings Presentation
27 slides from Bankunited's earnings presentation, Oct 22, 2024
Slide 1: Q3 2024 – Supplemental Information
Q3 2024 – Supplemental Information October 22, 2024 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 nine months ended September 30, 2024: ◦ Non-brokered deposits grew by $1.7 billion 1 Improve Funding Profile ◦ NIDDA up $800 million; 27% of total deposits ◦ Wholesale funding down $1.9 billion • For the nine months ended September 30, 2024: 2 Impro
Slide 5: Highlights from Third Quarter Earnings
Highlights from Third Quarter Earnings Change From ($ in millions, except per share data) Q3’24 Q2’24 Q3’23 Q2’24 Q3’23 Key Highlights Net Interest Income $234 $226 $215 $8 $19 4% QoQ growth in net interest income Provision for Credit Losses $9 $20 $33 ($11) ($24) manageable credit costs Total Non-i
Slide 6: Deposits
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Slide 7: Deposit Trends
Deposit Trends ($ in millions) $29,438 $27,496 $27,509 $27,764 $27,856 $26,538 $24,395 $7,009 $8,976 $7,635 $8,038 $6,835 $8,065 $4,295 $2,131 $3,020 $3,709 $2,142 $3,403 $3,773 $5,172 Non-interest Demand Interest Demand $10,622 Money Market / Savings $12,660 $13,061 $11,136 $13,369 $11,463 $10,325
Slide 8: Cost of Funds Trend
Cost of Funds Trend Spot Average Annual At December At December At December At December At December At June 30, At September 30, Percentage Yield (“APY”) 31, 2019 31, 2020 31, 2021 31, 2022 31, 2023 2024 2024 Total non-maturity deposits 1.11% 0.29% 0.14% 1.83% 2.87% 2.80% 2.61% Total interest-bearin
Slide 9: Loans and the Allowance for Credit Losses
Loans and the Allowance for Credit Losses 9
Slide 10: Prudently Underwritten and Well-Diversified Loan Portfolio
Prudently Underwritten and Well-Diversified Loan Portfolio At September 30, 2024 ($ in millions) Loan Portfolio Over Time $24,886 $24,634 $24,628 $24,399 $23,866 $23,765 $23,155 $1,455 $1,266 $1,156 $1,028 $525 $433 $539 $572 $1,868 $2,915 $2,515 $1,092 $768 $1,259 $8,305 $8,907 $9,136 $9,025 $6,735
Slide 11: High Quality CRE Portfolio
High Quality CRE Portfolio At September 30, 2024 ($ in millions) % of Total Wtd. Avg. Wtd. Avg. Property Type Balance CRE FL NY Tri State Other DSCR LTV Office $ 1,778 30 % 57 % 23 % 20 % 1.56 65.4 % Warehouse/Industrial 1,341 22 % 55 % 9% 36 % 1.99 48.9 % Multifamily 869 15 % 53 % 47 % —% 1.88 48.4
Slide 12: Manageable CRE Maturity Risk
Manageable CRE Maturity Risk At September 30, 2024 ($ in millions) Just 8% 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 13: CRE Peer Benchmarking
CRE Peer Benchmarking CRE / Total Loans(1)(2) CRE / Total Risk Based Capital(1)(2) 40% 250% 35% 220% 35% 34% 212% 200% 30% 164% 25% 25% 150% Peer Median 20% Peer Mean BankUnited, N.A 100% 15% 10% 50% 5% —% —% 1. BKU information as of September 30, 2024 2. CRE peer median information based on June 30
Slide 14: CRE Office Portfolio - Additional Information
CRE Office Portfolio - Additional Information At September 30, 2024 NY Tri-State by Sub-Market 4% 1% • 20% or $352 million of the total office portfolio is medical office 12% Manhattan NY Tri-State Other • Rent rollover in next 12 months 41% Long Island approximately 11% of the total office 21% Quee
Slide 15: Granular, Diversified Commercial & Industrial Portfolio
Granular, Diversified Commercial & Industrial Portfolio At September 30, 2024 ($ in millions) Geographic Distribution Industry Balance(1) % of Portfolio Finance and Insurance $ 1,507 16.7 % Manufacturing 810 9.0 % Utilities 765 8.5 % Health Care and Social Assistance 703 7.8 % Wholesale Trade 701 7.
Slide 16: Drivers of Change in the ACL - Current Quarter
Drivers of Change in the ACL - Current Quarter ($ in millions) Risk Rating Migration and Change in Specific Qualitative Portfolio and Overlay Reserves Assumption Economic Net Charge- Other Changes Forecast $6.1 $228.2 $225.7 $1.5 Offs $3.8 $4.2 $(6.6) • New Loans $(6.5) • Primarily net of • Current
Slide 17: Allocation of the ACL
Allocation of the ACL ($ in millions) December 31, 2023 June 30, 2024 September 30, 2024 Balance % of Loans Balance % of Loans Balance % of Loans Commerical: Commercial real estate $ 41.3 0.71 % $ 69.9 1.17 % $ 61.3 1.02 % Commercial and industrial 142.4 1.60 % 143.2 1.57 % 151.4 1.68 % Franchise an
Slide 18: 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 19: Non-Performing Loans by Portfolio Segment
Non-Performing Loans by Portfolio Segment ($ in millions) $244 $16 $224 $4 $205 $206 $51 $10 $35 $16 $173 $16 $46 $5 $46 Non-Guaranteed Portion of SBA $45 Guaranteed Portion of SBA $39 Franchise and Equipment $33 $127 C&I $35 $6 $87 $19 CRE $43 $105 Residential and Other Consumer $9 $42 $58 $43 $65
Slide 20: Criticized and Classified Loans
Criticized and Classified Loans ($ 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 $— 9 0 1 2 3 4 4 1 /1 1 /2 1 /2 1 /2 1 /2 0 /2 0 /2 /3 /3 /3 /3 /3 /3 /3 12 12 12 12 12 06 09 Comme
Slide 21: Criticized and Classified CRE Loans by Property Type
Criticized and Classified CRE Loans by Property Type ($ in millions) September 30, 2024 $3 $14 Multifamily $18 Hotel $125 $138 $29 Industrial/ Warehouse Retail Office $96 Construction $380 & Land Construction and land category includes $83 million of office exposure at 9/30/2024 Other SBA June 30, 2
Slide 22: Asset Quality - Delinquencies
Asset Quality - Delinquencies ($ in millions) Commercial(1) CRE $100 $100 $80 $80 $60 $60 $40 $40 $20 $20 $— $— 19 20 21 22 23 24 24 19 20 21 22 23 24 24 3 1/ 3 1/ 3 1/ 3 1/ 3 1/ 3 0/ 3 0/ 3 1/ 3 1/ 3 1/ 3 1/ 3 1/ 3 0/ 3 0/ 1 2/ 1 2/ 1 2/ 1 2/ 1 2/ 0 6/ 0 9/ 1 2/ 1 2/ 1 2/ 1 2/ 1 2/ 0 6/ 0 9/ Reside
Slide 23: Residential Portfolio Overview
Residential Portfolio Overview At September 30, 2024 Residential Loan Product Type FICO Distribution(1) <720 or NA 10% Govt Formerly Insured Covered 15% 1% 30 Yr Fixed High quality 33% 720-759 residential 5/1 & 7/1 ARM 14% portfolio consists 27% primarily of high 10/1 >759 ARM 15 & 20 FICO, low LTV,
Slide 24: Stress Testing Results CCAR Severely Adverse Scenario
Stress Testing Results CCAR Severely Adverse Scenario ($ in millions) Loan Portfolio Stress Test Results(1)(3) 4.0% 3.5% • Bank remains well above well 3.0% 2.6% capitalized threshold under 2.3% hypothetical severe stress 2.0% 1.0% 0.3% —% Commercial CRE Residential Total Lifetime expected losses in
Slide 25: Investment Portfolio
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Slide 26: High Quality, Short-Duration Securities Portfolio
High Quality, Short-Duration Securities Portfolio ($ in millions) • Unrealized losses continue to decline • No expected credit losses on AFS securities • AFS portfolio duration of 1.73; approximately 70% of the portfolio floating rate • HTM securities total $10 million December 31, 2023 June 30, 202
Slide 27: High Quality, Short-Duration Securities Portfolio
High Quality, Short-Duration Securities Portfolio At September 30, 2024 Strong credit enhancement levels - no SASB(1) exposure AA Private Label RMBS 5% Subordination Wtd. Avg. Stress Scenario Rating Min Max Avg. Loss AAA 2.9 92.0 17.8 2.2 AA 20.9 35.2 28.0 5.3 AAA Wtd. Avg. 3.8 89.2 18.3 2.3 95% A P