Bankunited Financial — Q1 FY2008 Earnings Presentation
22 slides from Bankunited Financial's earnings presentation, Jan 24, 2008
Slide 1: First Fiscal Quarter Financial Results
BankUnited Financial Corporation First Fiscal Quarter Financial Results January 24, 2008 Exhibit 99.2
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation may contain certain forward-looking statements, which are based on management's expectations regarding factors that may impact the company's earnings and performance in future periods. Words and phrases such as: "will likely result," "expect," "will cont
Slide 3: Alfred R. Camner, Chairman and Chief Executive Officer
Alfred R. Camner Chairman and Chief Executive Officer
Slide 4: First-Quarter Review
First-Quarter Review Loss of $25.5 million, or $0.73 per share Recorded a provision of $65.0 million reflecting the nationwide deterioration in the housing market and the rising level of delinquencies Operating earnings of $17.3 million* Net charge-offs of $6.0 million, or 0.19%, annualized of total
Slide 5: Repositioning the Company
Repositioning the Company Initiated a review of the business and began developing a strategic plan Key goals of the plan Transitioning to retail commercial bank Improving the capital position and profitability of the Company Goal = Improved Shareholder Return
Slide 6: Strengthening Capital Structure
Strengthening Capital Structure Maintaining a strong capital position BankUnited, FSB Tier 1 capital of 8.1% Shrinking the balance sheet Reducing residential balances by decreasing production Shifting mix of production to more saleable product These actions will further strengthen our capital ratios
Slide 7: Wholesale Residential Lending
Wholesale Residential Lending Wholesale lending Consolidated nine operations centers to three Announced closing of four of nine sales offices today – Arizona, California, Colorado and Oregon These actions reduce wholesale lending staff by 45% and reduce annualized run rate of expenses significantly
Slide 8: Credit Standards
Credit Standards Conservative underwriting standards No subprime lending No piggybacking Loans originated with an LTV over 80% are required to purchase mortgage insurance Loans underwritten at the fully indexed rate Strict appraisal review process Limited exposure to condos No high-rise construction
Slide 9: Ramiro Ortiz, President and Chief Operating Officer
Ramiro Ortiz President and Chief Operating Officer
Slide 10: First-Quarter 2008 Performance
First-Quarter 2008 Performance Total deposits increased 14% YoY to $7.1 billion Core deposits increased 13% YoY Commercial and Commercial Real Estate loan balances increased 10% YoY Consumer loan balances increased 7% YoY The core bank continues to perform well We continue to build strong relationsh
Slide 11: Repositioning the Company
Repositioning the Company We have realigned resources to support the core service areas of the bank We continue to attract new customers Neighborhood banking household relationships have grown from 58,000 at 4Q03 to 100,000 at 1Q08 Number of commercial borrowing relationships has grown from 73 at 4Q
Slide 12: Bert Lopez, Chief Financial Officer
Bert Lopez Senior Executive Vice President Chief Financial Officer
Slide 13: First-Quarter 2008 Credit Summary
First-Quarter 2008 Credit Summary Non-Performing Loans Q1 08 Q4 07 ($ in thousands) Total non-performing loans $384,426 $180,833 Real estate owned 46,909 27,732 Total non-performing assets $431,335 $208,565 Allowance for loan losses $117,658 $58,623
Slide 14: First-Quarter 2008 Credit Summary
First-Quarter 2008 Credit Summary 1Q 08 4Q 07 Non-performing assets to total assets 2.99% 1.39% Non-performing loans to total loans 3.05% 1.43% Allowance for loan losses as a % of total loan portfolio 0.93% 0.46% Allowance for loan losses as a % of non-performing loans 30.61% 32.42% 0.17% 0.11% Net
Slide 15: Asset Quality
Asset Quality Fiscal year end: September 30th -0.05% 0.58% 1.21% 1.83% 2.46% 3.09% 3.72% NPAs/Assets YTD NCOs/YTD Avg Loans
Slide 16: Residential Loan Portfolio at December 31, 2007
Residential Loan Portfolio at December 31, 2007 Other 15% Virginia 5% New Jersey 5% Illinois 6% Arizona 7% California 9% Florida 53% Geography Calendar Year 36% 21% 11% 2003 & Prior, 11% 21% Vintages as a % of Total Residential Loans 25% MI 29% MI 9% MI
Slide 17: Review of Portfolio for Discrepancies
Review of Portfolio for Discrepancies Geography Vintage Collateral Type Collateral Usage FICO LTV Doc Type Product No discrepancies except for 2006 vintage
Slide 18: 2006 Vintage
2006 Vintage $3.6 billion, or 36% of residential portfolio 29% of the portfolio has mortgage insurance Mortgage insurance payments as expected Continue to monitor insurers’ performance 58% of non-performing assets
Slide 19: BankUnited
«aBankUnited
Slide 20: Expenses
Expenses FY08 budgeted expenses are targeted below FY07, excluding asset disposition costs Reduction of FTE from 1,503 at 4Q07 to 1341 today Continual reallocation of FTE’s Strategic plan will include an extensive review of our expense structure
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation BankUnited Financial Corporation Quarter Ended December 30, 2007 Earnings Release (continued) For the Three Months Ended Dec 31, Reconciliation of GAAP to non-GAAP measures: (dollars and shares in thousands, except per share amounts) Net income: GAAP net income (25,50
Slide 22: Thank You
BankUnited Financial Corporation Thank You
BankUnited Financial — Q1 FY2008 Earnings Presentation on 6ix