BankUnited, Inc. (NYSE:BKU) Q4 2023 Results Conference Call January 26, 2024 9:00 AM ET Company Participants Susan Greenfield - Corporate Secretary Raj Singh - Chairman, President and Chief Executive Officer Thomas Cornish - Chief Operating Officer Leslie Lunak - Chief Financial Officer Conference Call Participants Will Jones - KBW Timur Braziler - Wells Fargo David Rochester - Compass Point John Arfstrom - RBC Ben Gerlinger - Citi Alex Lau - J.P. Morgan Zach Westerlind - UBS Operator Good day, and thank yo ...

BankUnited, Inc. (BKU) came out with quarterly earnings of $0.72 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.71 per share when it actually produced earnings of $0.63, delivering a surprise of -11.27%.Over the last four quarters, the company has not been able to surpass consensus EPS estimates.BankUnited, Inc., which b ...

Analysts on Wall Street project that BankUnited, Inc. (BKU) will announce quarterly earnings of $0.72 per share in its forthcoming report, representing a decline of 12.2% year over year. Revenues are projected to reach $243.97 million, declining 9.6% from the same quarter last year.Over the last 30 days, there has been an upward revision of 0.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forec ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20%28Unaudited%29) This section presents BankUnited, Inc.'s unaudited consolidated financial statements, highlighting decreases in total assets, loans, and deposits, alongside a significant year-over-year decline in net income [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$35,389,664** | **$37,026,712** | **-$1,637,048** | | Loans, net | $24,160,213 | $24,738,042 | -$577,829 | | Investment securities | $8,886,484 | $9,755,327 | -$868,843 | | **Total Liabilities** | **$32,865,594** | **$34,590,731** | **-$1,725,137** | | Total deposits | $26,112,666 | $27,509,334 | -$1,396,668 | | FHLB advances | $5,165,000 | $5,420,000 | -$255,000 | | **Total Stockholders' Equity** | **$2,524,070** | **$2,435,981** | **+$88,089** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Income Statement Highlights (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $214,842 | $235,836 | $656,594 | $669,894 | | Provision for Credit Losses | $33,049 | $3,720 | $68,354 | $35,546 | | **Net Income** | **$46,981** | **$87,850** | **$157,859** | **$220,764** | | **Diluted EPS** | **$0.63** | **$1.12** | **$2.11** | **$2.71** | - **Net income decreased significantly** for both the three and nine-month periods ended September 30, 2023, compared to the same periods in 2022, primarily driven by a **substantial increase in the provision for credit losses** and **higher interest expense**[14](index=14&type=chunk) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive Income (Loss) (in thousands) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $46,981 | $87,850 | $157,859 | $220,764 | | Other Comprehensive Income (Loss) | ($34,634) | ($87,346) | $30,709 | ($391,801) | | **Comprehensive Income (Loss)** | **$12,347** | **$504** | **$188,568** | **($171,037)** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net Cash Flow by Activity (in thousands) | Activity | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $593,716 | $1,317,141 | | Net cash provided by (used in) investing activities | $1,149,187 | ($1,645,266) | | Net cash provided by (used in) financing activities | ($1,923,665) | $739,406 | | **Net (decrease) increase in cash** | **($180,762)** | **$411,281** | [Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) - **Total stockholders' equity increased** from **$2.44 billion** at December 31, 2022, to **$2.52 billion** at September 30, 2023, driven by **net income of $157.9 million** and **comprehensive income of $30.7 million**, partially offset by dividends paid ($59.7 million) and common stock repurchases ($55.2 million)[23](index=23&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The company adopted **ASU No. 2022-02** in Q1 2023, which eliminated accounting guidance for Troubled Debt Restructurings (TDRs), resulting in a **$1.8 million reduction to the Allowance for Credit Losses (ACL)** and a **$1.3 million net-of-tax cumulative-effect adjustment** to retained earnings[26](index=26&type=chunk) - The **investment securities portfolio**, primarily classified as available-for-sale (AFS), had a **carrying value of $8.89 billion** at September 30, 2023, down from $9.76 billion at year-end 2022, and was in a **net unrealized loss position of $644.0 million**, primarily due to rising interest rates[37](index=37&type=chunk)[40](index=40&type=chunk)[49](index=49&type=chunk) - The **Allowance for Credit Losses (ACL) increased to $196.1 million (0.80% of total loans)** at September 30, 2023, from $147.9 million (0.59% of total loans) at December 31, 2022, mainly due to a **deteriorating economic forecast and an increase in specific reserves**[67](index=67&type=chunk)[73](index=73&type=chunk)[77](index=77&type=chunk) - The company uses **interest rate swaps, caps, and collars** as cash flow and fair value hedges to manage interest rate risk, with the **total notional amount of derivatives designated as hedging instruments at $3.14 billion** as of September 30, 2023[111](index=111&type=chunk)[167](index=167&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting net income decline due to higher credit loss provisions and funding costs, while highlighting strategic progress in deposits, liquidity, and capital strength [Overview and Quarterly Highlights](index=39&type=section&id=Overview%20and%20Quarterly%20Highlights) - **Net income for Q3 2023 was $47.0 million ($0.63/share)**, a **decrease from $87.9 million ($1.12/share)** in Q3 2022, primarily due to an **increased provision for credit losses** driven by a less favorable economic forecast[258](index=258&type=chunk) - Strategic priorities in Q3 2023 showed progress: **non-brokered deposits grew by $484 million**, **FHLB advances declined by $810 million**, and the **loans-to-deposits ratio improved to 93.3%** from 95.3% in the prior quarter[245](index=245&type=chunk)[246](index=246&type=chunk)[219](index=219&type=chunk) - The **net interest margin (tax-equivalent) expanded to 2.56%** in Q3 2023 from 2.47% in Q2 2023, though it was down from 2.76% in Q3 2022[259](index=259&type=chunk) - The company maintained **strong liquidity with $14.4 billion in same-day availability** and a **robust capital position, with a CET1 ratio of 11.4%** at the holding company level as of September 30, 2023[261](index=261&type=chunk)[247](index=247&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Net Interest Income and Margin (Tax-Equivalent) | Period | Net Interest Income | Net Interest Margin | | :--- | :--- | :--- | | **Q3 2023** | **$219.1M** | **2.56%** | | Q2 2023 | $218.1M | 2.47% | | Q3 2022 | $239.9M | 2.76% | | **9M 2023** | **$669.4M** | **2.55%** | | 9M 2022 | $681.5M | 2.63% | - The **provision for credit losses was $33.0 million for Q3 2023 and $68.4 million for the first nine months of 2023**, with the increase primarily driven by a **deteriorating economic forecast and risk rating migration**[130](index=130&type=chunk) - **Non-interest income increased to $27.7 million in Q3 2023** from $23.1 million in Q3 2022, mainly due to higher lease financing income, and **increased to $69.7 million for the nine-month period** from $50.8 million, driven by higher BOLI income and lease financing[132](index=132&type=chunk)[134](index=134&type=chunk) - **Non-interest expense rose to $445.1 million** for the nine months ended Sep 30, 2023, from $391.8 million in the prior year period, driven by **higher employee compensation, technology investments, deposit insurance expense, and costs related to depositor rebate programs**[135](index=135&type=chunk)[136](index=136&type=chunk) [Analysis of Financial Condition](index=46&type=section&id=Analysis%20of%20Financial%20Condition) - The investment strategy focuses on liquidity, high credit quality, and managing interest rate risk, with a **short portfolio duration of 2.03 years** as of September 30, 2023[154](index=154&type=chunk) - The loan portfolio is primarily composed of **commercial loans (65.6%) and residential loans (34.4%)**, with management intending to increasingly emphasize relationship-based loans accompanied by deposit business[67](index=67&type=chunk)[253](index=253&type=chunk) - **Non-performing assets (NPAs) remained low at 0.40% of total assets** at September 30, 2023, while the **Allowance for Credit Losses (ACL) to total loans ratio increased to 0.80%** at quarter-end, reflecting a more cautious economic outlook[262](index=262&type=chunk)[341](index=341&type=chunk) - The company maintains **strong liquidity, with total same-day available liquidity of $14.4 billion** and a **ratio of available liquidity to uninsured/uncollateralized deposits of 161%** at September 30, 2023[387](index=387&type=chunk)[362](index=362&type=chunk) - Capital levels remain robust and exceed well-capitalized guidelines, with the **CET1 risk-based capital ratio at 11.4% for the holding company and 13.2% for the Bank** as of September 30, 2023[247](index=247&type=chunk)[392](index=392&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages primary interest rate risk using income simulation and EVE models, indicating a liability-sensitive position with forecasted net interest income decreases in rising rate scenarios, partially hedged by derivatives Sensitivity of Net Interest Income (NII) and Economic Value of Equity (EVE) to Interest Rate Shocks (as of Sep 30, 2023) | Rate Shock (Basis Points) | Change in NII (Year 1) | Change in EVE | | :--- | :--- | :--- | | +200 | (4)% | (17)% | | +100 | (1)% | (8)% | | -100 | (1)% | +12% | | -200 | (3)% | +15% | - The company uses interest rate derivatives to hedge risk, having **held $3.14 billion in notional value of derivatives designated as hedging instruments** as of September 30, 2023, primarily pay-fixed interest rate swaps to hedge variable rate borrowings[372](index=372&type=chunk)[410](index=410&type=chunk) - As of September 30, 2023, all financial instruments previously based on LIBOR have been **successfully converted to an alternative reference rate, generally SOFR, completing the company's LIBOR transition**[400](index=400&type=chunk) [Controls and Procedures](index=73&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of September 30, 2023, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation conducted by management, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the period[374](index=374&type=chunk) - **No changes occurred in the company's internal control over financial reporting** during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[413](index=413&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=73&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal actions arising from the normal course of business, which management believes are remote to have a material impact on financial position, results, or cash flows - In the opinion of management, the **likelihood is remote that the impact of ongoing legal proceedings**, individually or in aggregate, would be **material to the Company's consolidated financial position, results of operations, or cash flows**[212](index=212&type=chunk)[375](index=375&type=chunk) [Risk Factors](index=73&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors from the 2022 10-K, except for new risks from March 2023 bank failures, potentially impacting regional bank liquidity, deposit flows, and leading to adverse regulatory changes or additional FDIC assessments - **Recent failures of three regional banks have eroded customer confidence** in the banking system, which may **adversely impact liquidity and deposit flows for regional banks** like BankUnited[119](index=119&type=chunk)[376](index=376&type=chunk) - The cost of resolving recent bank failures is likely to result in an **additional FDIC deposit insurance assessment**, which will **negatively impact the Company's earnings**[415](index=415&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section of the report did not contain any information regarding unregistered sales of equity securities or the use of proceeds - The report **does not contain information on unregistered sales of equity securities or use of proceeds** for the period[405](index=405&type=chunk) [Other Information](index=74&type=section&id=ITEM%205.%20Other%20Information) During the third quarter of 2023, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - **No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement** during the three months ended September 30, 2023[406](index=406&type=chunk) [Exhibits](index=75&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, which include the CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002, and the XBRL Interactive Data Files List of Exhibits | Exhibit | Description | | :--- | :--- | | 31.1 | Certification of Chief Executive Officer Pursuant to Section 302 | | 31.2 | Certification of Chief Financial Officer Pursuant to Section 302 | | 32.1 | Certification of Chief Executive Officer Pursuant to Section 906 | | 32.2 | Certification of Chief Financial Officer Pursuant to Section 906 | | 101 | Interactive Data Files (XBRL) |

BankUnited, Inc. (NYSE:BKU) Q3 2023 Earnings Conference Call October 19, 2023 9:00 AM ET Company Participants Susan Greenfield - Corporate Secretary Raj Singh - Chairman, President and Chief Executive Officer Tom Cornish - Chief Operating Officer Leslie Lunak - Chief Financial Officer Conference Call Participants Will Jones - KBW Graham Dick - Piper Sandler John Arfstorm - RBC Capital Markets Janet Lee - JPMorgan Operator Good day. Thank you for standing by. Welcome to the BankUnited Third Quarter 2023 Earn ...

Financial Performance - Net interest margin expanded to 2.56% from 2.47% for the prior quarter[16] - Total deposits grew by $274 million in Q3[17] - Non-brokered deposits grew by $484 million[17] - Net income was $47 million[28] - Pre-Provision, Net Revenue (PPNR) was $95 million[29] Deposits and Funding - Period-end Non-interest DDA was $7,357 million[1] - Non-interest bearing DDA stable at 28% of total deposits[17] - Paid off $1 billion in wholesale funding[16] - FHLB advances paid down by $810 million[17] Asset Quality and CRE Portfolio - Low NPA ratio of 0.40% at September 30[5] - Annualized net charge-off rate of 0.07%[5] - High quality CRE portfolio with weighted average DSCR of 1.80 and weighted average LTV of 55.8%; 58% in Florida[5] - CRE to total loans is 24%[5] - Allowance for credit losses to total loans increased to 0.80%[3] Liquidity and Capital - Same day available liquidity of $14.4 billion[3] - Available liquidity is 161% of uninsured, uncollateralized deposits[3] - CET 1 ratio of 11.4%[3]

[Glossary of Defined Terms](index=3&type=section&id=Glossary%20of%20Defined%20Terms) The report provides a glossary of acronyms and terms used throughout the document, including financial, regulatory, and company-specific definitions - The report provides a glossary of acronyms and terms used throughout the document, including financial, regulatory, and company-specific definitions such as ACL (Allowance for credit losses), CECL (Current expected credit losses), FHLB (Federal Home Loan Bank), and SOFR (Secured Overnight Financing Rate)[45](index=45&type=chunk)[46](index=46&type=chunk)[80](index=80&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section details the company's unaudited financial performance, condition, market risk, and internal control effectiveness [Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents BankUnited, Inc.'s unaudited consolidated financial statements for Q2 2023, detailing its financial position and performance Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | $35,871,479 | $37,026,712 | | Loans, net | $24,463,157 | $24,738,042 | | Total Deposits | $25,838,652 | $27,509,334 | | Total Liabilities | $33,345,169 | $34,590,731 | | Total Stockholders' Equity | $2,526,310 | $2,435,981 | Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net Interest Income | $213,878 | $441,752 | | Provision for Credit Losses | $15,517 | $35,305 | | Net Income | $57,996 | $110,878 | | Diluted EPS | $0.78 | $1.48 | Consolidated Cash Flow Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $423,574 | $1,055,430 | | Net Cash from Investing Activities | $690,549 | $(1,427,654) | | Net Cash from Financing Activities | $(1,385,601) | $571,140 | | Net (Decrease) in Cash | $(271,478) | $198,916 | - The Allowance for Credit Losses (ACL) increased by **$18.9 million** to **$166.8 million** at June 30, 2023, from **$147.9 million** at year-end 2022, primarily due to a deteriorating economic forecast and an increase in certain specific reserves[169](index=169&type=chunk)[170](index=170&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting strengthened liquidity, stable credit quality, and robust capital amid net interest margin pressure [Overview and Quarterly Highlights](index=38&type=section&id=Overview%20and%20Quarterly%20Highlights) Q2 2023 net income was **$58.0 million**, with improved liquidity and capital despite declining net interest margin from rising funding costs Quarterly Financial Performance (in millions, except per share data) | Metric | Q2 2023 | Q1 2023 | Q2 2022 | | :--- | :--- | :--- | :--- | | Net Income | $58.0M | $52.9M | $65.8M | | Diluted EPS | $0.78 | $0.70 | $0.82 | - The bank's liquidity position significantly improved, with total same-day available liquidity increasing from **$9.4 billion** at March 31, 2023, to **$14.7 billion** at June 30, 2023, and the ratio of available liquidity to estimated uninsured, uncollateralized deposits improved to **167%** from **95%** over the same period[303](index=303&type=chunk) - Total deposits grew by **$116 million** during Q2 2023, stabilizing after industry-wide volatility, though non-interest bearing demand deposits declined by **$62 million** during the quarter[333](index=333&type=chunk) - Book value per common share improved to **$33.94** and tangible book value per common share rose to **$32.90** at June 30, 2023[335](index=335&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Operating results were shaped by a contracting net interest margin from rising funding costs, alongside increased non-interest income and expenses Net Interest Margin Analysis | Metric | Q2 2023 | Q1 2023 | Q2 2022 | | :--- | :--- | :--- | :--- | | Net Interest Margin (Tax-Equivalent) | 2.47% | 2.62% | 2.63% | - The net interest margin was negatively impacted by a higher rate environment and increased competition for deposits, leading to a decline in non-interest bearing demand deposits and an increase in higher-cost funding sources like FHLB advances[6](index=6&type=chunk) Provision for Credit Losses (in thousands) | Period | Provision Amount | | :--- | :--- | | Q2 2023 | $15,517 | | Q2 2022 | $23,996 | | H1 2023 | $35,305 | | H1 2022 | $31,826 | - Non-interest income for Q2 2023 was **$25.5 million**, a significant increase from **$13.5 million** in Q2 2022, mainly due to higher BOLI income and smaller losses on marketable equity securities[14](index=14&type=chunk)[344](index=344&type=chunk) - Non-interest expense increased to **$145.2 million** in Q2 2023 from **$127.4 million** in Q2 2022, driven by investments in personnel and technology, and a higher FDIC assessment rate[16](index=16&type=chunk)[345](index=345&type=chunk)[370](index=370&type=chunk) [Analysis of Financial Condition](index=44&type=section&id=Analysis%20of%20Financial%20Condition) As of June 30, 2023, total assets were **$35.9 billion**, reflecting strategic balance sheet management, stable loans, strong asset quality, and robust liquidity and capital - The investment securities portfolio was in a net unrealized loss position of **$599.4 million** at June 30, 2023, an improvement from **$674.2 million** at year-end 2022, with losses attributed to rising interest rates, not credit issues[129](index=129&type=chunk)[155](index=155&type=chunk) - Commercial real estate (CRE) loans totaled **23%** of total loans, with a weighted average LTV of **57.1%** and DSCR of **1.88**, concentrated in Florida (**60%**) and the NY tri-state area (**25%**)[4](index=4&type=chunk) - Asset quality remained favorable with a non-performing asset to total assets ratio of **0.34%** and an annualized net charge-off ratio of **0.09%** for the first six months of 2023[359](index=359&type=chunk)[393](index=393&type=chunk) - The Allowance for Credit Losses (ACL) to total loans increased to **0.68%** at June 30, 2023, from **0.59%** at December 31, 2022, reflecting a more cautious economic outlook[305](index=305&type=chunk)[424](index=424&type=chunk) - At June 30, 2023, **66%** of the company's deposits were estimated to be insured or collateralized[303](index=303&type=chunk)[451](index=451&type=chunk) [Liquidity and Capital Resources](index=66&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and robust capital ratios, with **$14.7 billion** in same-day available liquidity and CET1 ratios well above regulatory requirements - Total same-day available liquidity was approximately **$14.7 billion** at June 30, 2023, consisting of cash, FHLB capacity, FRB capacity, and unencumbered securities[438](index=438&type=chunk) Regulatory Capital Ratios (June 30, 2023) | Ratio | BankUnited, Inc. | BankUnited, N.A. | Well-Capitalized Requirement | | :--- | :--- | :--- | :--- | | CET1 Risk-Based Capital | 11.15% | 12.99% | 6.50% | | Tier 1 Risk-Based Capital | 11.15% | 12.99% | 8.00% | | Total Risk-Based Capital | 12.96% | 13.62% | 10.00% | | Tier 1 Leverage | 7.55% | 8.79% | 5.00% | - Including the impact of Accumulated Other Comprehensive Income (AOCI), the pro-forma CET1 ratio would be **9.7%** at the holding company and **11.5%** at the bank, still well above required minimums[360](index=360&type=chunk)[441](index=441&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed via NII simulation and derivatives, with NII forecasted to decrease in various rate scenarios Net Interest Income Sensitivity (Year 1) | Rate Shock | Change in NII (June 30, 2023) | | :--- | :--- | | +200 bps | (4)% | | +100 bps | (1)% | | -100 bps | 0% | | -200 bps | (3)% | - The company actively uses derivative instruments, including interest rate swaps and caps, to hedge against interest rate fluctuations on both liabilities and assets[467](index=467&type=chunk)[488](index=488&type=chunk) - The company is managing the transition from LIBOR to alternative reference rates like SOFR, with approximately **$5.0 billion** in financial instruments still indexed to LIBOR expected to convert at their next reset date[469](index=469&type=chunk)[491](index=491&type=chunk) [Controls and Procedures](index=71&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[493](index=493&type=chunk) - No changes were made during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[472](index=472&type=chunk) [PART II. OTHER INFORMATION](index=71&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section addresses legal proceedings, updated risk factors, equity security sales, and required exhibits [Legal Proceedings](index=71&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal actions, which management believes are unlikely to materially impact its financial condition or operations - Management has concluded that the likelihood of any material adverse impact from ongoing legal proceedings is remote[295](index=295&type=chunk)[494](index=494&type=chunk) [Risk Factors](index=71&type=section&id=ITEM%201A.%20Risk%20Factors) This section highlights new risk factors from recent regional bank failures, potentially impacting liquidity, funding, and operations, alongside adverse regulatory changes - A new risk factor has been identified related to the recent failures of three regional banks, which has eroded customer confidence and could negatively impact BankUnited's liquidity and results of operations[473](index=473&type=chunk)[495](index=495&type=chunk) - The company faces potential adverse changes to laws or regulations, such as higher capital or liquidity requirements, and increased FDIC deposit insurance premiums as a result of the recent bank failures[501](index=501&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity security sales or Rule 10b5-1 trading arrangement adoptions or terminations by directors or officers - There were no unregistered sales of equity securities during the reporting period[474](index=474&type=chunk) - No director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2023[496](index=496&type=chunk) [Exhibits](index=72&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The list of exhibits includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and XBRL taxonomy files[497](index=497&type=chunk)

BankUnited, Inc. (NYSE:BKU) Q2 2023 Earnings Conference Call July 25, 2023 9:00 AM ET Company Participants Susan Greenfield - Corporate Secretary Raj Singh - Chairman, President and Chief Executive Officer Tom Cornish - Chief Operating Officer Leslie Lunak - Chief Financial Officer Conference Call Participants Brady Gailey - KBW Timur Braziler - Wells Fargo David Rochester - Compass Point Steven Alexopoulos - JPMorgan Brody Preston - UBS Christian DeGrasse - Goldman Sachs Jon Arfstrom - RBC Capital Markets ...

Asset Quality & Portfolio - The CRE portfolio is of high quality, with a weighted average Debt Service Coverage Ratio (DSCR) of 1.88 and a weighted average Loan-to-Value (LTV) of 57.1%, with 60% located in Florida[6] - The CRE office portfolio has a weighted average DSCR of 1.61 and a weighted average LTV of 66.2%, with 59% located in Florida[6] - Non-Performing Assets (NPA) ratio was 0.34% as of June 30, excluding the guaranteed portion of non-accrual SBA loans, the ratio is 0.24%[6] - The annualized net charge-off rate was 0.09%[6] - In a CCAR severely adverse scenario, projected lifetime loan portfolio losses are 2.2% and CRE losses are 3.3%[6] Liquidity & Deposits - Same-day available liquidity was $14.7 billion at June 30, an increase from $9.4 billion at March 31[6] - Available liquidity to uninsured, uncollateralized deposit ratio was 167% at June 30, up from 95% at March 31[6] - Total deposits grew by $116 million for the quarter[16] - Non-interest bearing Demand Deposit Accounts (DDA) represent 28% of total deposits at June 30[16] - Cost of total deposits was 2.46% for Q2 2023[16] Capital Position - CET1 ratios are 11.2% at the holding company and 13.0% at the bank[16] - Book value and tangible book value per share grew to $33.94 and $32.90 respectively[16]

BankUnited Go for more™ Q1 2023 – Supplemental Information April 25, 2023 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," "expec ...