Bankunited, Inc. · NYSE:BKU
Bankunited — Q1 2023 Earnings Presentation
29 slides from Bankunited's earnings presentation, Apr 25, 2023
Slide 1: Q1 2023 – Supplemental Information
April 25, 2023 Q1 2023 – Supplemental Information 1 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
@ \ BankUnited Go for more" Quarterly Highlights
Slide 4: Topics of Current Interest
Topics of Current Interest 4 Strong Liquidity Position Securities Portfolio Asset Quality Robust Capital Base • Same day available liquidity of $12.3 billion at April 21 • Available liquidity to uninsured, uncollateralized deposits ratio of 128% at April 21 • Pre-tax unrealized loss on AFS securitie
Slide 5: Highlights from First Quarter Earnings
Highlights from First Quarter Earnings 5 (1) Includes guaranteed portion of non-accrual SBA loans. (2) Annualized for the period ended March 31, 2023; Q4 2022 value is for fiscal 2022. ($ in millions, except per share data) Q1 23 Q4 22 Change Key Highlights Net Interest Income $228 $243 ($15) Provis
Slide 6: Deposits, Liquidity and Interest Rate Risk
Deposits, Liquidity and Interest Rate Risk 6
Slide 7: Primary Strategic Focus - Deposit Base Transformation
Primary Strategic Focus - Deposit Base Transformation ($ in millions) 7 Quarterly Cost of Deposits 0.94% 1.52% 1.48% 0.43% 0.19% 1.42% 2.05% Non-interest bearing as % of Total Deposits 14.0% 15.4% 17.6% 25.5% 30.5% 29.2% 28.6% Spot Average Annual Percentage Yield (“APY”) At December 31, 2019 At Dece
Slide 8: Deposit Flows Have Stabilized
Deposit Flows Have Stabilized ($ in millions) 8 • Deposit flows prior to March 10 consistent with industry trends and historical patterns • Late quarter deposit flows normalized after an initial week of volatility • $1.9 billion of outflows during the week of 3/13/23 attributed to a small number of
Slide 9: Available Liquidity Covers all Uninsured Deposits
Available Liquidity Covers all Uninsured Deposits ($ in millions) 9 Insured Deposits (1) As expected to be reported on the 3/31/23 Call Report. (2) Cash + Capacity at FHLB + Capacity at FRB + unencumbered securities at estimated liquidity value. (3) Estimated. Total Deposits at March 31, 2023 $ 25,7
Slide 10: Liquidity is Strong and Stable
Liquidity is Strong and Stable ($ in millions) 10 Cash $887 Cash $1,001 FHLB Capacity $2,919 FHLB Capacity $3,019 Capacity at the Fed $4,568 Capacity at the Fed $7,433 Unencumbered Securities $1,041 Unencumbered Securities, $841 $9,415 $12,294 3/31/2023 4/21/2023 Same Day Available LiquiditySwift, p
Slide 11: We take limited interest rate risk
11 We take limited interest rate risk Simulated percentage change in economic value of equity and net interest income compared to the base case as of 3/31/2023: • Modeling assumes a static balance sheet and parallel shocks of the indicated magnitude • Benchmark indices are floored at zero • Base cas
Slide 12: Investment Portfolio
@ \ BankUnited Go for more" Investment Portfolio 12
Slide 13: High Quality, Short-Duration Securities Portfolio
13 High Quality, Short-Duration Securities Portfolio ($ in millions) ($ in thousands) Portfolio Composition Ratings Distribution • AOCI mark on AFS securities improved $100 million QoQ; No expected credit losses • AFS portfolio duration of 1.95; approximately 68% of the portfolio floating rate • HTM
Slide 14: Strong credit enhancement levels
14 Strong credit enhancement levels Private Label RMBS Private Label CMBS CLOs AAA 94% AA 1% A 5% AAA 85% AA 11% A 4% AAA 80% AA 17% A 3% Rating Min Max Avg AAA 3.0 99.8 17.6 2.3 AA 19.1 33.5 24.3 5.3 A 22.9 25.8 23.6 5.4 Wtd. Avg. 4.2 95.4 17.9 2.5 Subordination Wtd. Avg. Stress Scenario Loss Ratin
Slide 15: Loans and the Allowance for Credit Losses
Loans and the Allowance for Credit Losses 15
Slide 16: Conservatively Underwritten and Well-Diversified Loan Portfolio
Conservatively Underwritten and Well-Diversified Loan Portfolio At March 31, 2023 ($ in millions) 16 Loan Portfolio Over Time (1) Includes lending subs and PPP. PPP totaled $782 million, $249 million, $3 million and $1 million at December 31, 2020, December 31, 2021, December 31, 2022, and March 31,
Slide 17: Drivers of Change in the ACL – Current Quarter
Drivers of Change in the ACL – Current Quarter ($ in millions) 17 ACL 12/31/22 ACL 03/31/2023 Other Economic Forecast Net Charge- Offs Change in Qualitative Overlay % of Total Loans 0.59% 0.64% • Current market adjustment • Changes to forward path of economic forecast • Decreased qualitative overlay
Slide 18: Allocation of the ACL
Allocation of the ACL ($ in millions) 18 (1) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $36.9 million and $40.3 million or 0.15% and 0.16% of total loans and 0.10% and 0.11% of total assets at March 31, 2023 and December 31, 2022, respectively. (
Slide 19: Granular, Diversified Commercial & Industrial Portfolio
19 Granular, Diversified Commercial & Industrial Portfolio At March 31, 2023 (1) Includes $1.9 billion of owner-occupied real estate ($ in millions) Industry Balance(1) % of Portfolio Finance and Insurance 1,844$ 21.8% Manufacturing 729 8.6% Educational Services 710 8.4% Information 671 7.9% Wholesa
Slide 20: High Quality CRE Portfolio
20 High Quality CRE Portfolio At March 31, 2023 ($ in millions) No non-performing CRE loans other than in the SBA portfolio at March 31, 2023 ($17 million in non-accrual guaranteed SBA loans) Property Type Wtd. Avg. DSCR Wtd. Avg. LTV Wtd. Avg. DSCR Wtd. Avg. LTV Office 1.79 65.1% 1.69 60.1% Warehou
Slide 21: High Quality CRE Portfolio Manageable Maturity Risk
21 High Quality CRE Portfolio ($ in millions) Manageable Maturity Risk: Just 8% of Total CRE portfolio are Fixed or Swapped and maturing in next 12 months Office Portfolio Characteristics: • 58% total exposure Florida, 9% Manhattan • Florida exposure over 90% suburban, approx 60% Class A or medical
Slide 22: CRE Portfolio – Stress Testing Results
22 CRE Portfolio – Stress Testing Results At December 31, 2022 ($ in millions) • 12/31/2022 CRE portfolio losses modeled using the Moody's S4 recessionary scenario • Total expected losses of $97 million, or 1.7% of total CRE • Moody's S4 Recessionary Scenario: recession > 1 year with decline in real
Slide 23: Asset Quality Metrics
Asset Quality Metrics Non-performing Loans to Total Loans Non-performing Assets to Total Assets Net Charge-offs to Average Loans 23 0.88% 1.02% 0.87% 0.42% 0.46% 0.68% 0.80% 0.68% 0.26% 0.31% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 Incl. guaranteed portion of
Slide 24: Non-Performing Loans by Portfolio Segment
Non-Performing Loans by Portfolio Segment ($ in millions) 24 $19 $29 $29 $21 $23 $24 $60 $30 $65 $43 $58 $22 $42 $21 $14 $45 $33 $13 $6 $205 $244 $206 $105 $114 $16 $16 $10 $9 $6 $46 $51 $46 $40 $37 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 Residential and Other Consumer CRE C&I Equipment Franchis
Slide 25: Criticized and Classified Loans
Criticized and Classified Loans ($ in millions) Commercial Real Estate (1) Commercial & Industrial (1) (1) Excludes SBA $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 25 $180 $39 $80 $91 $2 $20 Multifamily Hotel Retail Office Constructio
Slide 26: Asset Quality – Delinquencies
Asset Quality – Delinquencies ($ in millions) Commercial (1) CRE Residential (2) (1) Includes lending subsidiaries, excludes PPP loans (2) Excludes government insured residential loans 26 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 $0 $20 $40 $60 $80 $100 12/31/19 12/31/20 12
Slide 27: Residential Portfolio Overview
Residential Portfolio Overview At March 31, 2023 High quality residential portfolio consists primarily of high FICO, low LTV, prime jumbo mortgages with de- minimis charge-offs since inception as well as government insured loans FICO Distribution(1) Breakdown by LTV(1) Breakdown by Vintage(1) (1) Ex
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures 28
Slide 29: Non-GAAP Financial Measures
29 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