Bankunited, Inc. · NYSE:BKU
Bankunited — Q2 2022 Earnings Presentation
26 slides from Bankunited's earnings presentation, Jul 21, 2022
Slide 1: Q2 2022 – Supplemental Information
July 21, 2022 Q2 2022 – 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: Quarterly Highlights
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Slide 4: Quarterly Snapshot
Quarterly Snapshot 4 Operating results Loans and Deposits Asset Quality Capital • Net income for the quarter of $65.8 million and EPS of $0.82 • NIM expanded by 13bps to 2.63% • Non-interest income impacted by $9.3 million decline in fair value of preferred stock investments • Loan growth of $780 mi
Slide 5: Highlights from Second Quarter Earnings
Highlights from Second Quarter Earnings 5 Key Highlights Loan growth, increases in specific reserves and qualitative factors Reflects declines in value of preferred stock investments in 2022 Q2 2021 favorably impacted by reserve release 9% YoY non-interest DDA growth; (1) Includes guaranteed portion
Slide 6: Transformed Deposit Mix
Transformed Deposit mix ($ in millions) 6 $6,335 $6,820 $7,347 $4,807 $3,384 $2,725 $10,715 $11,262 $10,622 $12,660 $13,369 $13,223 $1,758 $1,771 $2,131 $3,020 $3,709 $2,868 $3,071 $3,621 $4,295 $7,009 $8,976 $9,645$21,879 $23,474 $24,395 $27,496 $29,438 $28,461 12/31/17 12/31/18 12/31/19 12/31/20 1
Slide 7: Prudently Underwritten and Well-Diversified Loan Portfolio
Prudently Underwritten and Well-Diversified Loan Portfolio At June 30, 2022 ($ in millions) 7 Loan Portfolio Over Time CRE C&I Other Residential Loan Product Type Non-owner Occupied 78% Multi- family 18% Construction and Land 4% Pinnacle 61% Bridge - Franchise 16% Bridge - Equipment 21% PPP 2% Comme
Slide 8: Allowance for Credit Losses
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Slide 9: Drivers of Change in the ACL
Drivers of Change in the ACL 9 ACL 03/31/22 ACL 6/30/22 Portfolio Changes Economic Forecast Net Charge- Offs Change in Qualitative Overlay ($ in millions) % of Total Loans 0.54% 0.54% • New loans • Repayments and runoff • Portfolio seasoning • Changes in borrower financial condition • Migration • Cu
Slide 10: Allocation of the ACL
Allocation of the ACL 10 ($ in millions) (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $43.4 million, $46.1 million, and $51.3 million or 0.18%, 0.19%, and 0.22%, of total loans and 0.12%, 0.13%, and 0.15% of total assets, at June 30, 2022, Dece
Slide 11: Loan Portfolio and Credit
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Slide 12: Granular, Diversified Commercial & Industrial Portfolio
12 Granular, Diversified Commercial & Industrial Portfolio At June 30, 2022 (1) Includes $1.9 billion of owner-occupied real estate (2) Excludes PPP loans ($ in millions) Industry Balance(1)(2) Commitment % of Portfolio Finance and Insurance 1,313$ 2,391$ 17.9% Educational Services 686 745 9.4% Whol
Slide 13: Commercial Real Estate by Property Type
13 Commercial Real Estate by Property Type At June 30, 2022 Property Type Balance FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Office 1,848$ 58% 25% 17% 2.35 65.3% Multifamily 1,133 45% 54% 1% 2.31 53.9% Retail 902 59% 33% 8% 1.88 62.9% Warehouse/Industrial 1,013 61% 19% 20% 2.46 58.3% Hotel 4
Slide 14: Asset Quality Metrics - Continued Positive Trends
Asset Quality Metrics - Continued Positive Trends 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 June 30, 2022. 14 0.88% 1.02% 0.87% 0.60% 0.68% 0.80% 0.68% 0.42% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25%
Slide 15: 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 $43.4 million, $46.1 million, $51.3 million, and $45.7 million at June 30, 2022, December 31, 2021, December 31, 2020, and December 31, 2019, respectively. $19 $29 $29 $19
Slide 16: Criticized and Classified Loans
Criticized and Classified Loans ($ in millions) Commercial Real Estate Commercial & Industrial (1) Franchise Finance(3) Equipment Finance SBA(2) (1) Substandard non-accruing and doubtful includes $1.1 million and $27.8 million of loans rated doubtful at June 30, 2022 and December 31, 2021, respectiv
Slide 17: Criticized and Classified – CRE by Property Type
Criticized and Classified – CRE by Property Type ($ 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 $35
Slide 18: Asset Quality – Delinquencies
Asset Quality – Delinquencies ($ in millions) Commercial (1) CRE Residential (2) (1) Includes lending subsidiaries (2) Excludes government insured residential loans 18 $0 $20 $40 $60 $80 12/31/19 12/31/20 12/31/21 3/31/22 6/30/22 $0 $20 $40 $60 $80 12/31/19 12/31/20 12/31/21 3/31/22 6/30/22 $0 $20 $
Slide 19: Credit Quality – Residential
Credit Quality – Residential At June 30, 2022 High quality residential portfolio consists primarily of 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 governmen
Slide 20: Investment Portfolio
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Slide 21: Investment Securities AFS
21 Investment Securities AFS ($ in thousands) Portfolio Composition Ratings Distribution NR 1% Gov 29% AAA 60% AA 7% A 3% Portfolio Net Unrealized Gain(Loss) Fair Value Net Unrealized Gain(Loss) Fair Value Net Unrealized Gain(Loss) Fair Value US Government and agency (3,939)$ 3,249,950$ (56,692)$ 3,
Slide 22: Investment Securities – Asset Quality of Select Non-Agency Securities
22 Investment Securities – Asset Quality of Select Non-Agency Securities At June 30, 2022 Strong credit enhancement levels Private Label RMBS AAA 95% AA 1% A 4% Private Label CMBS CLOs AAA 79% AA 17% A 4% AAA 85% AA 11% A 4% Rating Min Max Avg AAA 30.0 94.9 44.2 5.5 AA 29.2 88.5 42.8 6.0 A 24.4 65.8
Slide 23: Recognitions and Rankings
Recognitions and Rankings 23 South Florida-based Community Bank based on assets, South Florida Business Journal, October 2021 # 1 Largest Florida-based Bank based on assets, Florida Business Journals, December 2020 # 3 South Florida Business Journal, June 2021 Healthiest Employer in South Florida,#1
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 25: Non-GAAP Financial Measures (PPNR)
25 Non-GAAP Financial Measures PPNR is a non-GAAP financial measure. Management believes this measure is relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses and the ability of the Company to generate earnings sufficient to cove
Slide 26: Non-GAAP Financial Measures (Tangible Book Value)
26 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