BankUnited Go for more™ Q3 2024 – Supplemental Information October 22, 2024 1 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 financial performance. The Company generally identifies forward-looking statements by terminology such as "outlook," "believes," "exp ...

BankUnited, Inc. (BKU) reported $257.02 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 6%. EPS of $0.81 for the same period compares to $0.63 a year ago.The reported revenue represents a surprise of -0.63% over the Zacks Consensus Estimate of $258.65 million. With the consensus EPS estimate being $0.73, the EPS surprise was +10.96%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

Group 1: Earnings Performance - BankUnited, Inc. reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and up from $0.63 per share a year ago, representing an earnings surprise of 10.96% [1] - The company posted revenues of $257.02 million for the quarter ended September 2024, which was 0.63% below the Zacks Consensus Estimate, compared to $242.57 million in the same quarter last year [1] - Over the last four quarters, BankUnited has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [1] Group 2: Stock Performance and Outlook - BankUnited shares have increased by approximately 8.3% since the beginning of the year, while the S&P 500 has gained 22.7% [2] - The future performance of BankUnited's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.78 on revenues of $261.47 million, and for the current fiscal year, it is $2.86 on revenues of $1.01 billion [4] Group 3: Industry Context - The Banks - Major Regional industry, to which BankUnited belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [5] - Northern Trust Corporation, another company in the same industry, is expected to report quarterly earnings of $1.73 per share, reflecting a year-over-year increase of 16.1% [5]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides an overview of the company's strong financial results and strategic progress for the period [Third Quarter 2024 Financial Results](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Results) BankUnited, Inc. reported strong financial results for the third quarter of 2024, with significant year-over-year and sequential growth in net income and diluted earnings per share - The Chairman, President, and CEO, Rajinder Singh, expressed satisfaction with the Q3 results, highlighting the continued balance sheet transformation, margin expansion, and well-managed credit[1](index=1&type=chunk) Quarterly and YTD Earnings Summary | Metric | Q3 2024 ($M) | Q2 2024 ($M) | Q3 2023 ($M) | Nine Months 2024 ($M) | Nine Months 2023 ($M) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $61.5M | $53.7M | $47.0M | $163.2M | $157.9M | | **Diluted EPS** | $0.81 | $0.72 | $0.63 | $2.17 | $2.11 | [Quarterly Highlights & Strategic Progress](index=1&type=section&id=Quarterly%20Highlights%20%26%20Strategic%20Progress) The company demonstrated notable progress on its strategic priorities, focusing on improving core profitability, expanding net interest margin, and enhancing its funding profile Net Interest Margin (Tax-Equivalent Basis) | Period | Net Interest Margin (%) | | :--- | :--- | | **Q3 2024** | 2.78% | | **Q2 2024** | 2.72% | | **Q3 2023** | 2.56% | - The average cost of total deposits declined by **3 basis points** to **3.06%** in Q3 2024 from **3.09%** in Q2 2024, with the spot APY on total deposits seeing a more significant drop to **2.93%** at the end of Q3[4](index=4&type=chunk) - For the first nine months of 2024, the company improved its funding mix by reducing wholesale funding (FHLB advances and brokered deposits) by **$1.9 billion** while increasing non-brokered deposits by **$1.7 billion**, including an **$800 million** rise in non-interest bearing demand deposits[4](index=4&type=chunk) - The loan-to-deposit ratio improved, declining to **87.6%** at September 30, 2024, from **88.7%** at June 30, 2024, and **92.8%** at year-end 2023[6](index=6&type=chunk) [Financial Condition](index=2&type=section&id=Financial%20Condition) This section analyzes the company's balance sheet, including loan portfolio, asset quality, capital, and liquidity positions [Loan Portfolio Analysis](index=2&type=section&id=Loan%20Portfolio%20Analysis) Total loans decreased by **$230 million** during the third quarter to **$24.4 billion**, driven by strategic runoff in certain portfolios offset by growth in CRE and mortgage warehouse lending Loan Portfolio Composition (in thousands) | Loan Category | Sep 30, 2024 | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | :--- | | **Core C&I and CRE** | $15,012,739 | $15,089,927 | $14,726,957 | | **Franchise & Equipment** | $277,704 | $307,442 | $380,347 | | **Municipal Finance** | $749,035 | $847,234 | $884,690 | | **Mortgage Warehouse** | $571,783 | $539,159 | $432,663 | | **Residential** | $7,787,442 | $7,844,722 | $8,209,027 | | **Total Loans** | **$24,398,703** | **$24,628,484** | **$24,633,684** | - The company's balance sheet strategy involves reducing exposure to residential, franchise, equipment, and municipal finance loans, which collectively declined by **$185 million** in Q3 2024[6](index=6&type=chunk) [Asset Quality](index=2&type=section&id=Asset%20Quality) Asset quality metrics showed some deterioration due to an increase in non-performing and criticized loans, primarily from two C&I loans, yet net charge-offs remained low and ACL strengthened to **0.94%** Key Asset Quality Ratios | Metric | Sep 30, 2024 | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | :--- | | **ACL to Total Loans (%)** | 0.94% | 0.92% | 0.82% | | **ACL to Non-Performing Loans (%)** | 101.68% | 130.12% | 159.54% | | **Annualized Net Charge-offs (%)** | 0.12% (YTD) | 0.12% (6mo) | 0.09% (Year) | - The provision for credit losses was **$9.2 million** for Q3 2024, a decrease from **$19.5 million** in Q2 2024, influenced by qualitative overlays and portfolio changes, partially offset by an improved economic forecast[12](index=12&type=chunk) - Non-performing loans increased to **$224.5 million** (**0.92%** of total loans) at the end of Q3, up from **$173.5 million** (**0.70%** of total loans) at the end of Q2[16](index=16&type=chunk) - Total criticized and classified commercial loans rose by **$90 million** during the quarter, primarily due to two C&I loans moving to the substandard non-accruing category[15](index=15&type=chunk) [Capital and Liquidity Position](index=2&type=section&id=Capital%20and%20Liquidity%20Position) The company maintained a robust capital position and ample liquidity, with all regulatory capital ratios significantly above 'well capitalized' requirements and continued growth in tangible common equity and book value per share - Total same-day available liquidity was strong at **$15.0 billion**, with the available liquidity to uninsured, uncollateralized deposits ratio at **147%**[9](index=9&type=chunk) Key Capital Ratios (BankUnited, Inc.) | Ratio | Sep 30, 2024 | Jun 30, 2024 | Well Capitalized Req. | | :--- | :--- | :--- | :--- | | **CET1 Risk-based Capital (%)** | 11.8% | 11.6% | 6.5% | | **Total Risk-based Capital (%)** | 13.9% | 13.6% | 10.0% | | **Tier 1 Leverage (%)** | 8.3% | 8.2% | 5.0% | | **Tangible Common Equity / Tangible Assets (%)** | 7.6% | 7.4% | N/A | - Book value per common share increased to **$37.56** and tangible book value per common share grew to **$36.52** at September 30, 2024[10](index=10&type=chunk) [Detailed Financial Analysis](index=5&type=section&id=Detailed%20Financial%20Analysis) This section offers an in-depth analysis of net interest income, non-interest expenses, and key financial performance ratios [Net Interest Income and Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased by **4%** sequentially to **$234.1 million** in Q3 2024, with the net interest margin expanding by **6 basis points** to **2.78%** due to improved asset yields and lower deposit costs Net Interest Income and Margin Performance | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | **Net Interest Income ($M)** | $234.1M | $226.0M | | **Net Interest Margin (Tax-equivalent) (%)** | 2.78% | 2.72% | | **Yield on Avg. Interest Earning Assets (%)** | 5.79% | 5.77% | | **Avg. Cost of Total Deposits (%)** | 3.06% | 3.09% | [Non-interest Expense](index=5&type=section&id=Non-interest%20Expense) Non-interest expense for Q3 2024 was **$164.6 million**, an increase of **$6.9 million** from the previous quarter, primarily driven by higher employee compensation and benefits due to stock price appreciation - The primary driver for the quarterly increase in non-interest expense was a **$6.2 million** rise in compensation and benefits[18](index=18&type=chunk) - This increase in compensation was mainly due to the impact of a higher company stock price on certain share-based compensation awards and other variable compensation accruals[18](index=18&type=chunk) [Key Financial Ratios](index=12&type=section&id=Key%20Financial%20Ratios) The company's key performance ratios, including Return on Average Assets (ROA) and Return on Average Stockholders' Equity (ROE), showed improvement in Q3 2024, reflecting enhanced profitability Selected Performance Ratios (Annualized) | Ratio | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | **Return on average assets (%)** | 0.69% | 0.61% | 0.52% | | **Return on average stockholders' equity (%)** | 8.8% | 8.0% | 7.2% | | **Loans to deposits (%)** | 87.6% | 88.7% | 93.3% | [Appendix: Financial Statements and Reconciliations](index=6&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This section provides comprehensive financial statements and reconciliations of non-GAAP financial measures [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents the detailed unaudited Consolidated Balance Sheets as of September 30, 2024, June 30, 2024, and December 31, 2023, and the Consolidated Statements of Income for the three and nine-month periods ended September 30, 2024 and 2023 [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's detailed unaudited consolidated balance sheets for key reporting periods - Total assets stood at **$35.8 billion** as of September 30, 2024, a slight increase from **$35.4 billion** at June 30, 2024[23](index=23&type=chunk) - Total deposits increased to **$27.9 billion** from **$27.8 billion** in the prior quarter, while FHLB advances also rose to **$3.6 billion**[23](index=23&type=chunk) [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) This section details the company's consolidated statements of income, outlining revenues and expenses for the reporting periods - The Consolidated Statements of Income provide a detailed breakdown of revenues and expenses, showing a net income of **$61.5 million** for the quarter ended September 30, 2024[24](index=24&type=chunk) [Average Balances and Yields/Rates Analysis](index=9&type=section&id=Average%20Balances%20and%20Yields%2FRates%20Analysis) This section provides detailed tables analyzing average balances for assets and liabilities, and their corresponding yields and rates [Earnings Per Share Calculation](index=11&type=section&id=Earnings%20Per%20Share%20Calculation) This section details the computation of basic and diluted earnings per common share, reconciling net income to common stockholders' income [Non-GAAP Financial Measures Reconciliation](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) The report includes a reconciliation for the non-GAAP measure of tangible book value per common share, presented for comparison with other financial institutions Tangible Book Value Reconciliation | Metric | Sep 30, 2024 | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | :--- | | **Book value per common share (GAAP) ($)** | $37.56 | $36.11 | $34.66 | | **Tangible book value per common share (Non-GAAP) ($)** | $36.52 | $35.07 | $33.62 |

Company Overview - BankUnited, Inc. (BKU) is headquartered in Miami Lakes and operates in the Finance sector [2] - The stock has experienced a price change of 14.28% since the beginning of the year [2] Dividend Information - BankUnited is currently paying a dividend of $0.29 per share, resulting in a dividend yield of 3.13% [2] - The company's annualized dividend of $1.16 has increased by 9.4% from the previous year [2] - Over the last 5 years, BankUnited has raised its dividend 4 times, achieving an average annual increase of 6.41% [2] - The current payout ratio is 43%, indicating that the company paid out 43% of its trailing 12-month EPS as dividends [2] Earnings Growth - The Zacks Consensus Estimate for BankUnited's earnings in 2024 is $2.86 per share, with an expected increase of 1.06% from the previous year [3] Investment Perspective - Dividends are favored by investors as they enhance stock investing profits and reduce overall portfolio risk [4] - BankUnited is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [4]

The market expects BankUnited, Inc. (BKU) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be ...

Company Overview - BankUnited, Inc. (BKU) is based in Miami Lakes and operates in the Finance sector, with a year-to-date share price change of 7.55% [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 3.33%, which is higher than the Banks - Major Regional industry's yield of 3.26% and the S&P 500's yield of 1.51% [3] Dividend Performance - BankUnited's annualized dividend of $1.16 has increased by 9.4% from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 6.21% [4] - The current payout ratio stands at 43%, indicating that the company distributes 43% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for BankUnited's earnings in 2024 is projected at $2.87 per share, reflecting an expected increase of 1.41% compared to the previous year [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While high-yielding stocks may face challenges during periods of rising interest rates, BankUnited presents a compelling investment opportunity due to its strong dividend profile [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]

BankUnited Inc.'s (BKU) shares have soared 58.1% in the past year and outperformed its industry. Also, the stock has performed much better than its close peers Bank OZK (OZK) and Hilltop Holdings Inc. (HTH) . One-Year Price Performance Image Source: Zacks Investment Research Technical indicators also suggest sustained strength for BankUnited. At present, the stock is trading above its 50-day and 200-day moving average, indicating a bullish trend. 50-Day & 200-Day Moving Average Image Source: Zacks Investmen ...

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