8-K
BankUnited, Inc. (BKU)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 22, 2025 (January 22, 2025)
BankUnited, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-35039 | 27-0162450 | |||||
|---|---|---|---|---|---|---|---|
| (State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | 14817 Oak Lane, | Miami Lakes, | FL | 33016 | |
| --- | --- | --- | --- | ||||
| (Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code): (305) 569-2000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Class | Trading Symbol | Name of Exchange on Which Registered |
|---|---|---|
| Common Stock, $0.01 Par Value | BKU | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02 Results of Operations and Financial Condition.
On January 22, 2025, BankUnited, Inc. (the “Company”) reported its results for the quarter and year ended December 31, 2024. A copy of the Company’s press release containing this information and slides containing supplemental information related to this release are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit<br>Number | Description | |
|---|---|---|
| 99.1 | Press release dated | January 22, 2025 |
| 99.2 | Supplemental information relating to the press release dated | January 22, 2025 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: | January 22, 2025 | BANKUNITED, INC. | |
|---|---|---|---|
| /s/ Leslie N. Lunak | |||
| Name: | Leslie N. Lunak | ||
| Title: | Chief Financial Officer |
EXHIBIT INDEX
| Exhibit<br>Number | Description | |
|---|---|---|
| 99.1 | Press release dated | January 22, 2025 |
| 99.2 | Supplemental information relating to the press release dated | January 22, 2025 |
4
Document
Exhibit 99.1
BANKUNITED, INC. REPORTS 2024 RESULTS
Miami Lakes, Fla. — January 22, 2025 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2024.
"We are very excited about the momentum we've generated and the improvement we've seen in the funding base and profitability profile of the Company over the course of 2024" said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended December 31, 2024, the Company reported net income of $69.3 million, or $0.91 per diluted share, compared to $61.5 million, or $0.81 per diluted share, for the immediately preceding quarter ended September 30, 2024 and $20.8 million, or $0.27 per diluted share, for the quarter ended December 31, 2023. For the year ended December 31, 2024, the Company reported net income of $232.5 million, or $3.08 per diluted share, compared to $178.7 million, or $2.38 per diluted share, for the year ended December 31, 2023. Results for the quarter and year ended December 31, 2023 were negatively impacted by a $35.4 million FDIC special assessment, pre-tax. This item reduced net income by $26.2 million and EPS by $0.35 for the quarter and year ended December 31, 2023.
Quarterly Highlights
We continue to execute on strategic priorities focused on improving core profitability. EPS, the net interest margin, ROAA and ROAE have improved notably since the fourth quarter of 2023, as well as for the year ended December 31, 2024 compared to the year ended December 31, 2023.
•The net interest margin, calculated on a tax-equivalent basis, expanded by 0.06% to 2.84% for the quarter ended December 31, 2024 from 2.78% for the immediately preceding quarter and by 0.24% from 2.60% for the comparable quarter of the prior year. Average non-interest bearing demand deposits ("NIDDA") for the quarter ended December 31, 2024 exceeded our expectations and we made outstanding progress reducing the cost of interest bearing deposits. For the year ended December 31, 2024, the net interest margin improved to 2.73% from 2.56% for the year ended December 31, 2023.
•The average cost of total deposits declined by 0.34% to 2.72% for the quarter ended December 31, 2024 from 3.06% for the immediately preceding quarter ended September 30, 2024, while the average cost of interest bearing deposits declined by 0.45% to 3.75% from 4.20% for those same comparable periods. The spot APY of total deposits declined to 2.63% at December 31, 2024 from 2.93% at September 30, 2024 while the spot APY of interest bearing deposits declined to 3.58% at December 31, 2024 from 4.01% at September 30, 2024.
•Average NIDDA grew by $173 million for the quarter ended December 31, 2024 compared to the immediately preceding quarter and by $648 million compared to the fourth quarter of 2023. On a point-to-point basis, NIDDA grew by $781 million for the year ended December 31, 2024 and was relatively flat, declining by only $19 million in spite of seasonal headwinds, for the fourth quarter of 2024. At December 31, 2024, NIDDA was 27% of total deposits.
•Wholesale funding, including FHLB advances and brokered deposits, declined by $346 million for the quarter ended December 31, 2024. For the year ended December 31, 2024, wholesale funding declined by $2.3 billion.
•Total deposits was relatively flat quarter over quarter, growing by $9.5 million for the quarter ended December 31, 2024. For the year ended December 31, 2024, total deposits grew by $1.3 billion; non-brokered deposits grew by $1.4 billion.
•Total loans declined by $101 million for the quarter ended December 31, 2024. The core CRE and C&I segments grew by $185 million and mortgage warehouse grew by $14 million. Consistent with our balance sheet strategy, the residential, franchise, equipment and municipal finance portfolios declined by a combined $299 million. For the year ended December 31, 2024, the core CRE and C&I segments grew by $470 million, mortgage warehouse grew by $153 million and the residential, franchise, equipment and municipal finance portfolios declined by a combined $959 million. The pace of C&I growth over the course of 2024 was impacted by an increased level of payoffs and rationalization of non-relationship credits.
•The loan to deposit ratio declined to 87.2% at December 31, 2024, from 87.6% at September 30, 2024 and 92.8% at December 31, 2023.
•Total criticized and classified commercial loans declined by $75.1 million for the quarter ended December 31, 2024, however, non-performing loans increased by $26.2 million, primarily related to one CRE office loan. The NPA ratio was 0.73%, including 0.10% related to the guaranteed portion of non-accrual SBA loans, at December 31, 2024 compared to 0.64%, including 0.10% related to the guaranteed portion of non-accrual SBA loans at September 30, 2024. The net charge-off ratio for the year ended December 31, 2024 was 0.16%.
•The ratio of the ACL to total loans was 0.92% at December 31, 2024; the ratio of the ACL to non-performing loans was 89.01%. The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.37% at December 31, 2024 and the ACL to loans ratio for CRE office loans was 2.30%.
•Our commercial real estate exposure totaled 26% of loans and 169% of the Bank's total risk based capital at December 31, 2024. By comparison, based on call report data as of September 30, 2024 (the most recent date available) for banks with between $10 billion and $100 billion in assets, the median level of CRE to total loans was 35% and the median level of CRE to total risk based capital was 222%.
•At December 31, 2024, the weighted average LTV of the CRE portfolio was 55.0%, the weighted average DSCR was 1.76, 54% of the portfolio was collateralized by properties located in Florida and 25% was collateralized by properties located in the New York tri-state area. For the office sub-segment, the weighted average LTV was 65.2%, the weighted average DSCR was 1.57, 57% was collateralized by properties in Florida, substantially all of which was suburban, and 23% was collateralized by properties located in the New York tri-state area.
•Our capital position is robust. At December 31, 2024, CET1 was 12.0% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was 10.9% at December 31, 2024. The ratio of tangible common equity to tangible assets increased to 7.8% at December 31, 2024.
•Book value and tangible book value per common share continued to grow, to $37.65 and $36.61, respectively, at December 31, 2024, compared to $37.56 and $36.52, respectively, at September 30, 2024, and $34.66 and $33.62, respectively at December 31, 2023.
Loans
Loan portfolio composition at the dates indicated follows (dollars in thousands):
| December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Core C&I and CRE sub-segments: | |||||||||||||
| Non-owner occupied commercial real estate | $ | 5,652,203 | 23.3 | % | $ | 5,488,884 | 22.5 | % | $ | 5,323,241 | 21.6 | % | |
| Construction and land | 561,989 | 2.3 | % | 497,928 | 2.0 | % | 495,992 | 2.0 | % | ||||
| Owner occupied commercial real estate | 1,941,004 | 8.0 | % | 1,999,515 | 8.2 | % | 1,935,743 | 7.9 | % | ||||
| Commercial and industrial | 7,042,222 | 28.9 | % | 7,026,412 | 28.9 | % | 6,971,981 | 28.3 | % | ||||
| 15,197,418 | 62.5 | % | 15,012,739 | 61.6 | % | 14,726,957 | 59.8 | % | |||||
| Franchise and equipment finance | 213,477 | 0.9 | % | 277,704 | 1.1 | % | 380,347 | 1.5 | % | ||||
| Pinnacle - municipal finance | 720,661 | 3.0 | % | 749,035 | 3.1 | % | 884,690 | 3.6 | % | ||||
| Mortgage warehouse lending ("MWL") | 585,610 | 2.4 | % | 571,783 | 2.3 | % | 432,663 | 1.8 | % | ||||
| Residential | 7,580,814 | 31.2 | % | 7,787,442 | 31.9 | % | 8,209,027 | 33.3 | % | ||||
| $ | 24,297,980 | 100.0 | % | $ | 24,398,703 | 100.0 | % | $ | 24,633,684 | 100.0 | % |
For the quarter ended December 31, 2024, total loans declined by $101 million. The CRE portfolio grew by $227 million and MWL grew by $14 million while the C&I portfolio declined by $43 million. Consistent with our balance sheet strategy, residential loans declined by $207 million; the franchise, equipment, and municipal finance portfolios declined by an aggregate $93 million.
Asset Quality and the ACL
The following table presents information about the ACL at the dates indicated as well as net charge-off rates for the periods ended December 31, 2024, September 30, 2024 and December 31, 2023 (dollars in thousands):
| ACL | ACL to Total Loans | Commercial ACL to Commercial Loans(2) | ACL to Non-Performing Loans | Net Charge-offs to Average Loans (1) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2023 | $ | 202,689 | 0.82 | % | 1.29 | % | 159.54 | % | 0.09 | % |
| September 30, 2024 | $ | 228,249 | 0.94 | % | 1.41 | % | 101.68 | % | 0.12 | % |
| December 31, 2024 | $ | 223,153 | 0.92 | % | 1.37 | % | 89.01 | % | 0.16 | % |
(1) Annualized for the nine months ended September 30, 2024; ratios for December 31, 2024 and 2023 are annual net charge-off rates.
(2) For purposes of this ratio, commercial loans includes the core C&I and CRE sub-segments as presented in the table above as well as franchise and equipment finance. Due to their unique risk profiles, MWL and municipal finance are excluded from this ratio.
The decline in the ACL coverage ratios at December 31, 2024 as compared to the prior quarter-end is related to C&I charge-offs during the quarter, the majority of which were previously reserved for.
The ACL at December 31, 2024 represents management's estimate of lifetime expected credit losses given an assessment of historical data, current conditions, and a reasonable and supportable economic forecast as of the balance sheet date. For the quarter ended December 31, 2024, the provision for credit losses, including both funded and unfunded loan commitments, was $11.0 million, compared to $9.2 million for the immediately preceding quarter ended September 30, 2024 and $19.3 million for the quarter ended December 31, 2023. The most significant factor leading to the decrease in ACL for the quarter was net charge offs; this reduction was partially offset by increases in specific reserves, the impact of the economic forecast and an increase in qualitative overlays. Three C&I loans accounted for substantially all of the charge-offs for the quarter.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||
| Beginning balance | $ | 228,249 | $ | 225,698 | $ | 196,063 | $ | 202,689 | $ | 147,946 |
| Impact of adoption of new accounting pronouncement (ASU 2022-02) | N/A | N/A | N/A | N/A | (1,794) | |||||
| Balance after impact of adoption of ASU 2022-02 | 228,249 | 225,698 | 196,063 | 202,689 | 146,152 | |||||
| Provision | 12,267 | 9,091 | 16,257 | 58,986 | 78,924 | |||||
| Net charge-offs | (17,363) | (6,540) | (9,631) | (38,522) | (22,387) | |||||
| Ending balance | $ | 223,153 | $ | 228,249 | $ | 202,689 | $ | 223,153 | $ | 202,689 |
As detailed in the following table, criticized and classified commercial loans declined by $75.1 million for the quarter ended December 31, 2024 (in thousands):
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CRE | Total Commercial | CRE | Total Commercial | CRE | Total Commercial | |||||||
| Special mention | $ | 58,771 | $ | 262,387 | $ | 145,338 | $ | 323,326 | $ | 97,552 | $ | 319,905 |
| Substandard - accruing | 633,614 | 894,754 | 587,097 | 932,746 | 390,724 | 711,266 | ||||||
| Substandard - non-accruing | 95,378 | 219,758 | 70,860 | 186,565 | 13,727 | 86,903 | ||||||
| Doubtful | — | 6,856 | — | 16,265 | — | 19,035 | ||||||
| Total | $ | 787,763 | $ | 1,383,755 | $ | 803,295 | $ | 1,458,902 | $ | 502,003 | $ | 1,137,109 |
Non-performing loans totaled $250.7 million or 1.03% of total loans at December 31, 2024, compared to $224.5 million or 0.92% of total loans at September 30, 2024. The increase in non-performing loans for the quarter ended December 31, 2024 related primarily to one CRE office loan. Non-performing loans included $34.3 million and $35.1 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.14% of total loans at both December 31, 2024 and September 30, 2024.
Net Interest Income
Net interest income for the quarter ended December 31, 2024 was $239.3 million, compared to $234.1 million for the immediately preceding quarter ended September 30, 2024, and $217.2 million for the quarter ended December 31, 2023. Interest income decreased by $24.4 million for the quarter ended December 31, 2024, compared to the immediately preceding quarter, while interest expense decreased by $29.5 million.
The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.06% to 2.84% for the quarter ended December 31, 2024, from 2.78% for the immediately preceding quarter ended September 30, 2024. Factors impacting the net interest margin for the quarter ended December 31, 2024 were:
•The average rate paid on interest bearing deposits declined to 3.75% for the quarter ended December 31, 2024, from 4.20% for the quarter ended September 30, 2024. This decline reflected initiatives taken to lower rates paid on deposits in response to declines in the Fed Funds rate and the re-pricing of term deposits.
•The average rate paid on FHLB advances declined to 3.82% for the quarter ended December 31, 2024, from 4.27% for the quarter ended September 30, 2024, reflecting the repayment or repricing of predominantly shorter term high rate advances.
•The tax-equivalent yield on loans declined to 5.60% for the quarter ended December 31, 2024, from 5.87% for the quarter ended September 30, 2024 reflecting the impact of declining market rates on the predominantly floating rate commercial portfolio.
•The tax-equivalent yield on investments declined to 5.31% for the quarter ended December 31, 2024, from 5.62% for the quarter ended September 30, 2024. This decrease resulted primarily from the reset of coupon rates on variable rate securities.
Overall, the reduction in cost of interest bearing liabilities outpaced the decline in the yield on interest earning assets.
Non-interest income and Non-interest expense
Lease financing: Declines in both lease financing income and depreciation of operating lease equipment for the year ended December 31, 2024 compared to the year ended December 31, 2023 corresponded with the reduction in the portfolio of operating lease equipment. Quarterly fluctuations in lease financing income may be caused by variability in residual income.
Other non-interest income: Year-over-year increases in other non-interest income include increases in loan related and syndication fees, commercial card revenue and income related to bank owned life insurance.
Employee compensation and benefits: Year-over-year increases in compensation relate to investments we are making in people to support future growth of the commercial business, regular merit increases, and increased variable compensation cost, related in part to an increase in the Company's stock price.
As discussed above, non-interest expense for the year and three months ended December 31, 2023 included a $35.4 million FDIC special assessment.
Railcar refurbishment costs of approximately $8 million that we had expected to incur in the fourth quarter of 2024 did not materialize, and are expected instead to occur in 2025.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Wednesday, January 22, 2025 with Chairman, President and Chief Executive Officer Rajinder P. Singh, Chief Financial Officer Leslie N. Lunak and Chief Operating Officer Thomas M. Cornish.
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BI3806d72590724f8daf0fcb6899fb73f4. For those unable to join the live event, an archived webcast will be available on the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.
About BankUnited, Inc.
BankUnited, Inc., with total assets of $35.2 billion at December 31, 2024, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida that provides a full range of banking and related services to individual and corporate customers through banking centers located in the state of Florida, the New York metropolitan area and Dallas, Texas, and a comprehensive suite of wholesale products to customers through an Atlanta office focused on the Southeast region. BankUnited also offers certain commercial lending and deposit products through national platforms. For additional information, call (877) 779-2265 or visit www.BankUnited.com. BankUnited can be found on Facebook at facebook.com/BankUnited.official, LinkedIn @BankUnited and on X @BankUnited.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitation) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control, such as but not limited to adverse events or conditions impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov).
Contact
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak, 786-313-1698
Source: BankUnited, Inc.
BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data)
| December 31,<br>2024 | September 30,<br>2024 | December 31,<br>2023 | ||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash and due from banks: | ||||||
| Non-interest bearing | $ | 12,078 | $ | 14,746 | $ | 14,945 |
| Interest bearing | 479,038 | 875,122 | 573,338 | |||
| Cash and cash equivalents | 491,116 | 889,868 | 588,283 | |||
| Investment securities (including securities reported at fair value of $9,130,244, $9,109,860 and $8,867,354) | 9,130,244 | 9,119,860 | 8,877,354 | |||
| Non-marketable equity securities | 206,297 | 237,172 | 310,084 | |||
| Loans | 24,297,980 | 24,398,703 | 24,633,684 | |||
| Allowance for credit losses | (223,153) | (228,249) | (202,689) | |||
| Loans, net | 24,074,827 | 24,170,454 | 24,430,995 | |||
| Bank owned life insurance | 284,570 | 306,313 | 318,459 | |||
| Operating lease equipment, net | 223,844 | 241,625 | 371,909 | |||
| Goodwill | 77,637 | 77,637 | 77,637 | |||
| Other assets | 753,207 | 741,816 | 786,886 | |||
| Total assets | $ | 35,241,742 | $ | 35,784,745 | $ | 35,761,607 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Liabilities: | ||||||
| Demand deposits: | ||||||
| Non-interest bearing | $ | 7,616,182 | $ | 7,635,427 | $ | 6,835,236 |
| Interest bearing | 4,892,814 | 5,171,865 | 3,403,539 | |||
| Savings and money market | 11,055,418 | 10,324,697 | 11,135,708 | |||
| Time | 4,301,289 | 4,724,236 | 5,163,995 | |||
| Total deposits | 27,865,703 | 27,856,225 | 26,538,478 | |||
| FHLB advances | 2,930,000 | 3,580,000 | 5,115,000 | |||
| Notes and other borrowings | 708,553 | 708,694 | 708,973 | |||
| Other liabilities | 923,168 | 832,022 | 821,235 | |||
| Total liabilities | 32,427,424 | 32,976,941 | 33,183,686 | |||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,748,370, 74,749,012 and 74,372,505 shares issued and outstanding | 747 | 747 | 744 | |||
| Paid-in capital | 301,672 | 296,107 | 283,642 | |||
| Retained earnings | 2,796,440 | 2,749,314 | 2,650,956 | |||
| Accumulated other comprehensive loss | (284,541) | (238,364) | (357,421) | |||
| Total stockholders' equity | 2,814,318 | 2,807,804 | 2,577,921 | |||
| Total liabilities and stockholders' equity | $ | 35,241,742 | $ | 35,784,745 | $ | 35,761,607 |
BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||
| Interest income: | ||||||||||
| Loans | $ | 336,816 | $ | 355,220 | $ | 346,255 | $ | 1,389,897 | $ | 1,318,217 |
| Investment securities | 121,872 | 127,907 | 125,993 | 497,666 | 488,212 | |||||
| Other | 9,300 | 9,229 | 10,957 | 37,553 | 51,152 | |||||
| Total interest income | 467,988 | 492,356 | 483,205 | 1,925,116 | 1,857,581 | |||||
| Interest expense: | ||||||||||
| Deposits | 188,853 | 208,630 | 192,833 | 815,572 | 660,305 | |||||
| Borrowings | 39,876 | 49,598 | 73,162 | 195,278 | 323,472 | |||||
| Total interest expense | 228,729 | 258,228 | 265,995 | 1,010,850 | 983,777 | |||||
| Net interest income before provision for credit losses | 239,259 | 234,128 | 217,210 | 914,266 | 873,804 | |||||
| Provision for credit losses | 11,001 | 9,248 | 19,253 | 55,072 | 87,607 | |||||
| Net interest income after provision for credit losses | 228,258 | 224,880 | 197,957 | 859,194 | 786,197 | |||||
| Non-interest income: | ||||||||||
| Deposit service charges and fees | 4,988 | 5,016 | 5,201 | 20,226 | 20,906 | |||||
| Gain (loss) on investment securities, net | 804 | 127 | 617 | 2,127 | (10,052) | |||||
| Lease financing | 7,162 | 6,368 | 3,723 | 30,610 | 45,882 | |||||
| Other non-interest income | 12,251 | 11,377 | 7,551 | 46,192 | 30,102 | |||||
| Total non-interest income | 25,205 | 22,888 | 17,092 | 99,155 | 86,838 | |||||
| Non-interest expense: | ||||||||||
| Employee compensation and benefits | 82,315 | 81,781 | 73,454 | 315,604 | 280,744 | |||||
| Occupancy and equipment | 11,776 | 12,242 | 10,610 | 45,560 | 43,345 | |||||
| Deposit insurance expense | 6,662 | 7,421 | 43,453 | 36,143 | 66,747 | |||||
| Professional fees | 5,150 | 4,953 | 5,052 | 17,110 | 14,184 | |||||
| Technology | 21,002 | 21,094 | 18,628 | 82,978 | 79,984 | |||||
| Depreciation of operating lease equipment | 4,352 | 4,666 | 10,476 | 26,127 | 44,446 | |||||
| Other non-interest expense | 29,215 | 32,425 | 29,190 | 118,478 | 106,501 | |||||
| Total non-interest expense | 160,472 | 164,582 | 190,863 | 642,000 | 635,951 | |||||
| Income before income taxes | 92,991 | 83,186 | 24,186 | 316,349 | 237,084 | |||||
| Provision for income taxes | 23,689 | 21,734 | 3,374 | 83,882 | 58,413 | |||||
| Net income | $ | 69,302 | $ | 61,452 | $ | 20,812 | $ | 232,467 | $ | 178,671 |
| Earnings per common share, basic | $ | 0.92 | $ | 0.82 | $ | 0.27 | $ | 3.10 | $ | 2.39 |
| Earnings per common share, diluted | $ | 0.91 | $ | 0.81 | $ | 0.27 | $ | 3.08 | $ | 2.38 |
BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
| Three Months Ended December 31, | Three Months Ended September 30, | Three Months Ended December 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2024 | 2023 | ||||||||||||||||
| Average<br>Balance | Interest (1) | Yield/<br><br>Rate (1)(2) | Average<br>Balance | Interest (1) | Yield/<br><br>Rate (1)(2) | Average<br>Balance | Interest (1) | Yield/<br><br>Rate (1)(2) | ||||||||||
| Assets: | ||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||
| Loans | $ | 24,152,602 | $ | 339,725 | 5.60 | % | $ | 24,299,898 | $ | 358,259 | 5.87 | % | $ | 24,416,013 | $ | 349,603 | 5.69 | % |
| Investment securities (3) | 9,236,863 | 122,648 | 5.31 | % | 9,171,185 | 128,762 | 5.62 | % | 8,850,397 | 126,870 | 5.73 | % | ||||||
| Other interest earning assets | 785,947 | 9,300 | 4.71 | % | 722,366 | 9,229 | 5.08 | % | 801,833 | 10,957 | 5.42 | % | ||||||
| Total interest earning assets | 34,175,412 | 471,673 | 5.50 | % | 34,193,449 | 496,250 | 5.79 | % | 34,068,243 | 487,430 | 5.70 | % | ||||||
| Allowance for credit losses | (235,211) | (231,383) | (198,984) | |||||||||||||||
| Non-interest earning assets | 1,405,129 | 1,444,410 | 1,715,795 | |||||||||||||||
| Total assets | $ | 35,345,330 | $ | 35,406,476 | $ | 35,585,054 | ||||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||
| Interest bearing demand deposits | $ | 5,045,860 | $ | 46,759 | 3.69 | % | $ | 3,930,101 | $ | 37,294 | 3.78 | % | $ | 3,433,216 | $ | 31,978 | 3.70 | % |
| Savings and money market deposits | 10,462,295 | 93,912 | 3.57 | % | 11,304,999 | 119,856 | 4.22 | % | 10,287,945 | 104,188 | 4.02 | % | ||||||
| Time deposits | 4,529,737 | 48,182 | 4.23 | % | 4,524,215 | 51,480 | 4.53 | % | 5,225,756 | 56,667 | 4.30 | % | ||||||
| Total interest bearing deposits | 20,037,892 | 188,853 | 3.75 | % | 19,759,315 | 208,630 | 4.20 | % | 18,946,917 | 192,833 | 4.04 | % | ||||||
| FHLB advances | 3,200,652 | 30,750 | 3.82 | % | 3,766,630 | 40,471 | 4.27 | % | 5,545,978 | 64,034 | 4.58 | % | ||||||
| Notes and other borrowings | 708,689 | 9,126 | 5.15 | % | 708,829 | 9,127 | 5.15 | % | 711,073 | 9,128 | 5.13 | % | ||||||
| Total interest bearing liabilities | 23,947,233 | 228,729 | 3.80 | % | 24,234,774 | 258,228 | 4.24 | % | 25,203,968 | 265,995 | 4.19 | % | ||||||
| Non-interest bearing demand deposits | 7,557,267 | 7,384,721 | 6,909,027 | |||||||||||||||
| Other non-interest bearing liabilities | 995,789 | 1,009,157 | 903,099 | |||||||||||||||
| Total liabilities | 32,500,289 | 32,628,652 | 33,016,094 | |||||||||||||||
| Stockholders' equity | 2,845,041 | 2,777,824 | 2,568,960 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 35,345,330 | $ | 35,406,476 | $ | 35,585,054 | ||||||||||||
| Net interest income | $ | 242,944 | $ | 238,022 | $ | 221,435 | ||||||||||||
| Interest rate spread | 1.70 | % | 1.55 | % | 1.51 | % | ||||||||||||
| Net interest margin | 2.84 | % | 2.78 | % | 2.60 | % |
(1) On a tax-equivalent basis where applicable
(2) Annualized
(3) At fair value except for securities held to maturity
BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
| Years Ended December 31, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||||||||
| Average<br>Balance | Interest (1) | Yield/<br><br>Rate (1) | Average<br>Balance | Interest (1) | Yield/<br><br>Rate (1) | ||||||||
| Assets: | |||||||||||||
| Interest earning assets: | |||||||||||||
| Loans | $ | 24,269,787 | $ | 1,402,132 | 5.78 | % | $ | 24,558,430 | $ | 1,331,578 | 5.42 | % | |
| Investment securities (2) | 9,064,521 | 501,006 | 5.53 | % | 9,228,718 | 491,851 | 5.33 | % | |||||
| Other interest earning assets | 745,885 | 37,553 | 5.03 | % | 986,186 | 51,152 | 5.19 | % | |||||
| Total interest earning assets | 34,080,193 | 1,940,691 | 5.69 | % | 34,773,334 | 1,874,581 | 5.39 | % | |||||
| Allowance for credit losses | (224,673) | (171,618) | |||||||||||
| Non-interest earning assets | 1,502,205 | 1,749,981 | |||||||||||
| Total assets | $ | 35,357,725 | $ | 36,351,697 | |||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||
| Interest bearing liabilities: | |||||||||||||
| Interest bearing demand deposits | $ | 4,077,852 | $ | 152,809 | 3.75 | % | $ | 2,905,968 | $ | 86,759 | 2.99 | % | |
| Savings and money market deposits | 11,043,510 | 451,352 | 4.09 | % | 10,704,470 | 382,432 | 3.57 | % | |||||
| Time deposits | 4,757,675 | 211,411 | 4.44 | % | 5,169,458 | 191,114 | 3.70 | % | |||||
| Total interest bearing deposits | 19,879,037 | 815,572 | 4.10 | % | 18,779,896 | 660,305 | 3.52 | % | |||||
| FHLB advances | 3,823,579 | 158,750 | 4.15 | % | 6,331,685 | 285,026 | 4.50 | % | |||||
| Notes and other borrowings | 709,422 | 36,528 | 5.15 | % | 752,036 | 38,446 | 5.11 | % | |||||
| Total interest bearing liabilities | 24,412,038 | 1,010,850 | 4.14 | % | 25,863,617 | 983,777 | 3.80 | % | |||||
| Non-interest bearing demand deposits | 7,239,161 | 7,091,029 | |||||||||||
| Other non-interest bearing liabilities | 968,163 | 848,023 | |||||||||||
| Total liabilities | 32,619,362 | 33,802,669 | |||||||||||
| Stockholders' equity | 2,738,363 | 2,549,028 | |||||||||||
| Total liabilities and stockholders' equity | $ | 35,357,725 | $ | 36,351,697 | |||||||||
| Net interest income | $ | 929,841 | $ | 890,804 | |||||||||
| Interest rate spread | 1.55 | % | 1.59 | % | |||||||||
| Net interest margin | 2.73 | % | 2.56 | % |
(1) On a tax-equivalent basis where applicable
(2) At fair value except for securities held to maturity
BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| c | December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||
| Basic earnings per common share: | ||||||||||
| Numerator: | ||||||||||
| Net income | $ | 69,302 | $ | 61,452 | $ | 20,812 | $ | 232,467 | $ | 178,671 |
| Distributed and undistributed earnings allocated to participating securities | (1,598) | (850) | (930) | (4,113) | (3,565) | |||||
| Income allocated to common stockholders for basic earnings per common share | $ | 67,704 | $ | 60,602 | $ | 19,882 | $ | 228,354 | $ | 175,106 |
| Denominator: | ||||||||||
| Weighted average common shares outstanding | 74,750,961 | 74,753,372 | 74,384,185 | 74,694,303 | 74,493,898 | |||||
| Less average unvested stock awards | (1,075,384) | (1,079,182) | (1,130,715) | (1,098,045) | (1,168,004) | |||||
| Weighted average shares for basic earnings per common share | 73,675,577 | 73,674,190 | 73,253,470 | 73,596,258 | 73,325,894 | |||||
| Basic earnings per common share | $ | 0.92 | $ | 0.82 | $ | 0.27 | $ | 3.10 | $ | 2.39 |
| Diluted earnings per common share: | ||||||||||
| Numerator: | ||||||||||
| Income allocated to common stockholders for basic earnings per common share | $ | 67,704 | $ | 60,602 | $ | 19,882 | $ | 228,354 | $ | 175,106 |
| Adjustment for earnings reallocated from participating securities | (198) | 6 | — | (402) | (275) | |||||
| Income used in calculating diluted earnings per common share | $ | 67,506 | $ | 60,608 | $ | 19,882 | $ | 227,952 | $ | 174,831 |
| Denominator: | ||||||||||
| Weighted average shares for basic earnings per common share | 73,675,577 | 73,674,190 | 73,253,470 | 73,596,258 | 73,325,894 | |||||
| Dilutive effect of certain share-based awards | 616,913 | 817,866 | 203,123 | 382,043 | 197,441 | |||||
| Weighted average shares for diluted earnings per common share | 74,292,490 | 74,492,056 | 73,456,593 | 73,978,301 | 73,523,335 | |||||
| Diluted earnings per common share | $ | 0.91 | $ | 0.81 | $ | 0.27 | $ | 3.08 | $ | 2.38 |
BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
| At or for the Three Months Ended | At or for the Years Ended December 31, | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | September 30, 2024 | December 31, 2023 | 2024 | 2023 | ||||||||||||||||||||
| Financial ratios (4) | ||||||||||||||||||||||||
| Return on average assets | 0.78 | % | 0.69 | % | 0.23 | % | 0.66 | % | 0.49 | % | ||||||||||||||
| Return on average stockholders’ equity | 9.7 | % | 8.8 | % | 3.2 | % | 8.5 | % | 7.0 | % | ||||||||||||||
| Net interest margin (3) | 2.84 | % | 2.78 | % | 2.60 | % | 2.73 | % | 2.56 | % | ||||||||||||||
| Loans to deposits | 87.2 | % | 87.6 | % | 92.8 | % | 87.2 | % | 92.8 | % | ||||||||||||||
| Tangible book value per common share | $ | 36.61 | $ | 36.52 | $ | 33.62 | $ | 36.61 | $ | 33.62 | December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||
| Asset quality ratios | ||||||||||||||||||||||||
| Non-performing loans to total loans (1)(5) | 1.03 | % | 0.92 | % | 0.52 | % | ||||||||||||||||||
| Non-performing assets to total assets (2)(5) | 0.73 | % | 0.64 | % | 0.37 | % | ||||||||||||||||||
| Allowance for credit losses to total loans | 0.92 | % | 0.94 | % | 0.82 | % | ||||||||||||||||||
| Allowance for credit losses to commercial loans (6) | 1.37 | % | 1.41 | % | 1.29 | % | ||||||||||||||||||
| Allowance for credit losses to non-performing loans (1)(5) | 89.01 | % | 101.68 | % | 159.54 | % | ||||||||||||||||||
| Net charge-offs to average loans(7) | 0.16 | % | 0.12 | % | 0.09 | % |
(1) We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.
(2) Non-performing assets include non-performing loans, OREO and other repossessed assets.
(3) On a tax-equivalent basis.
(4) Annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.
(5) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $34.3 million or 0.14% of total loans and 0.10% of total assets at December 31, 2024, $35.1 million or 0.14% of total loans and 0.10% of total assets at September 30, 2024, and $41.8 million or 0.17% of total loans and 0.12% of total assets at December 31, 2023.
(6) For purposes of this ratio, commercial loans includes the C&I and CRE sub-segments, as well as franchise and equipment finance. Due to their unique risk profiles, MWL and municipal finance are excluded from this ratio.
(7) Annualized for the nine months ended September 30, 2024; ratios for December 31, 2024 and 2023 are annual net charge-off rates.
| December 31, 2024 | September 30, 2024 | December 31, 2023 | Required to be Considered Well Capitalized | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BankUnited, Inc. | BankUnited, N.A. | BankUnited, Inc. | BankUnited, N.A. | BankUnited, Inc. | BankUnited, N.A. | |||||||||
| Capital ratios | ||||||||||||||
| Tier 1 leverage | 8.5 | % | 9.7 | % | 8.3 | % | 9.6 | % | 7.9 | % | 9.1 | % | 5.0 | % |
| Common Equity Tier 1 ("CET1") risk-based capital | 12.0 | % | 13.7 | % | 11.8 | % | 13.6 | % | 11.4 | % | 13.1 | % | 6.5 | % |
| Total risk-based capital | 14.1 | % | 14.6 | % | 13.9 | % | 14.6 | % | 13.4 | % | 13.9 | % | 10.0 | % |
| Tangible Common Equity/Tangible Assets | 7.8 | % | N/A | 7.6 | % | N/A | 7.0 | % | N/A | N/A |
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 comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data):
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||
|---|---|---|---|---|---|---|
| Total stockholders’ equity | $ | 2,814,318 | $ | 2,807,804 | $ | 2,577,921 |
| Less: goodwill and other intangible assets | 77,637 | 77,637 | 77,637 | |||
| Tangible stockholders’ equity | $ | 2,736,681 | $ | 2,730,167 | $ | 2,500,284 |
| Common shares issued and outstanding | 74,748,370 | 74,749,012 | 74,372,505 | |||
| Book value per common share | $ | 37.65 | $ | 37.56 | $ | 34.66 |
| Tangible book value per common share | $ | 36.61 | $ | 36.52 | $ | 33.62 |
12
exhibit99212312024
January 22, 2025 Q4 2024 – Supplemental Information 1 Exhibit 99.2
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,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this presentation are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitation) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control, such as but not limited to adverse events or conditions impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov). 2
Quarterly Highlights 3
Improve Asset Mix Improve Funding Profile 2 Maintain Robust Liquidity and Capital Net Interest Margin Near-term Strategic Priorities Scorecard 5 3 4 1 • For the quarter ended December 31, 2024: ◦ Average NIDDA grew by $173 million, $648 million compared to Q4 2023 • For the year ended December 31, 2024: ◦ Non-brokered deposits grew by $1.4 billion ◦ NIDDA grew by 11% or $781 million; 27% of total deposits ◦ Wholesale funding down $2.3 billion • For the year ended December 31, 2024: ◦ Core C&I and CRE loans grew by $470 million ◦ Lower yielding and non-core resi, franchise, equipment and municipal finance declined an aggregate $959 million • For the quarter ended December 31, 2024: ◦ NIM expanded by 0.06% to 2.84% from 2.78% ◦ Cost of deposits declined to 2.72% from 3.06%, down 0.34% • For the year ended December 31, 2024: ◦ NIM improved to 2.73% for the full year from 2.56% for 2023 • CET 1 ratio 12.0%; TCE/TA 7.8% • Same day available liquidity $15.5 billion • Available liquidity 150% of uninsured, uncollateralized deposits; 63% of deposits insured or collateralized. Manage credit • ACL/Loans 0.92%; commercial ACL 1.37% • Net charge-off rate for the year 0.16% • NPA ratio excluding guaranteed SBA loans 0.63% • Criticized/classified loans declined $75 million for the quarter 4
Highlights from Fourth Quarter Earnings Change From ($ in millions, except per share data) Q4’24 Q3’24 Q4’23 Q3’24 Q4’23 Key Highlights Net Interest Income $239 $234 $217 $5 $22 10% growth in net interest income over Q4 one year ago Provision for Credit Losses $11 $9 $19 $2 ($8) Total Non-interest Income $25 $23 $17 $2 $8 Q4 2023 included $10mm loss on investment securities Total Non-interest Expense $160 $165 $191 ($5) ($31) Q4 2023 included $35.4 million FDIC special assessment Net Income $69 $61 $21 $8 $48 FDIC special assessment reduced Q4 and YTD 2023 net income by $26.2 million EPS $0.91 $0.81 $0.27 $0.10 $0.64 FDIC special assessment impacted Q4’23 EPS by $0.35 Period-end Core C&I and CRE loans $15,197 $15,013 $14,727 $185 $470 Period-end Loans $24,298 $24,399 $24,634 ($101) ($336) impacted by strategic runoff of resi and non-core segments Non-interest DDA as a percentage of total deposits 27% 27% 26% —% 1% Non-interest DDA $7,616 $7,635 $6,835 ($19) $781 11% YoY increase Period-end Deposits $27,866 $27,856 $26,538 $9 $1,328 Loans to Deposits 87.2% 87.6% 92.8% (0.4%) (5.6%) CET1 12.0% 11.8% 11.4% 0.2% 0.6% Total Capital 14.1% 13.9% 13.4% 0.2% 0.7% Yield on Loans 5.60% 5.87% 5.69% (0.27%) (0.09%) Yield on Securities 5.31% 5.62% 5.73% (0.31%) (0.42%) Cost of Deposits 2.72% 3.06% 2.96% (0.34%) (0.24%) Net Interest Margin 2.84% 2.78% 2.60% 0.06% 0.24% Non-performing Assets to Total Assets(1) 0.73% 0.64% 0.37% 0.09% 0.36% Allowance for Credit Losses to Total Loans 0.92% 0.94% 0.82% (0.02%) 0.10% Commercial Allowance for Credit Losses to Total Commercial Loans(3) 1.37% 1.41% 1.29% (0.04)% 0.08% Net Charge-offs to Average Loans(2) 0.16% 0.12% 0.09% 0.04% 0.07% 1. Includes guaranteed portion of non-accrual SBA loans. 2. Annualized for the nine months ended September 30, 2024; ratios for December 31, 2024 and 2023 are annual net charge-off rates. 3. For purposes of this ratio, commercial loans includes the core C&I and CRE sub-segments as well as franchise and equipment finance. Due to their unique risk profiles, MWL and municipal finance are excluded from this ratio. 5
Key Profitability Metrics Steadily Improving 6 Q4’2023 Q1’2024 Q2’2024 Q3’2024 Q4’2024 EPS, as reported $ 0.27 $ 0.64 $ 0.72 $ 0.81 $ 0.91 EPS, adjusted(2) $ 0.62 Net interest margin(1) 2.60 % 2.57 % 2.72 % 2.78 % 2.84 % Return on average assets, as reported(1) 0.23 % 0.54 % 0.61 % 0.69 % 0.78 % Return on average assets, adjusted(1)(2) 0.52 % Return on average stockholders’ equity, as reported(1) 3.2 % 7.3 % 8.0 % 8.8 % 9.7 % Return on average stockholders’ equity, adjusted(1)(2) 7.3 % 1. Annualized. 2. Adjusted to exclude the impact of the FDIC special assessment of $35.4 million, pre-tax, for the three months ended December 31, 2023. Adjusted EPS, adjusted return on average assets and adjusted return on average stockholders’ equity are non-GAAP financial measures. See section entitled “Non-GAAP Financial Measures” on page 29.
Deposits 7
Deposit Trends ($ in millions) $7,347 $4,807 $3,384 $4,268 $5,164 $4,724 $4,301 $10,622 $12,660 $13,369 $13,061 $11,136 $10,325 $11,056 $2,131 $3,020 $3,709 $2,142 $3,403 $5,172 $4,893 $4,295 $7,009 $8,976 $8,038 $6,835 $7,635 $7,616 $24,395 $27,496 $29,438 $27,509 $26,538 $27,856 $27,866 Non-interest Demand Interest Demand Money Market / Savings Time 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 Quarterly Cost of Deposits 1.48% 0.43% 0.19% 1.42% 2.96% 3.06% 2.72% Non-interest bearing as a % of Total Deposits 17.6% 25.5% 30.5% 29.2% 25.8% 27.4% 27.3% 8
Cost of Funds Trend 9 1.42% 0.36% 0.16% 1.92% 3.18% 2.93% 2.63%1.75% 0.25% 0.25% 4.50% 5.50% 5.00% 4.50% Spot APY - Total Deposits Target Federal Funds Rate Upper Bound 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 (1.00)% —% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Spot Average Annual Percentage Yield (“APY”) At December 31, 2019 At December 31, 2020 At December 31, 2021 At December 31, 2022 At December 31, 2023 At September 30, 2024 At December 31, 2024 Total non-maturity deposits 1.11% 0.29% 0.14% 1.83% 2.87% 2.61% 2.37% Total interest-bearing deposits 1.71% 0.48% 0.23% 2.66% 4.20% 4.01% 3.58% Total deposits 1.42% 0.36% 0.16% 1.92% 3.18% 2.93% 2.63% Spread Between Fed Funds Upper Bound and Spot APY of Total Deposits
Loans and the Allowance for Credit Losses 10
11 Prudently Underwritten and Well-Diversified Loan Portfolio At December 31, 2024 ($ in millions) Loan Portfolio Over Time $5,661 $6,348 $8,368 $8,901 $8,209 $7,787 $7,581 $7,493 $6,896 $5,702 $5,700 $5,819 $5,987 $6,214 $6,718 $6,448 $6,735 $8,305 $8,907 $9,025 $8,982 $768 $1,259 $1,092 $525 $433 $572 $586 $2,515 $2,915 $1,868 $1,455 $1,266 $1,028 $935$23,155 $23,866 $23,765 $24,886 $24,634 $24,399 $24,298 Other (1) Mortgage Warehouse Lending C&I CRE Residential 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 1. Includes Pinnacle municipal finance, franchise and equipment finance, and PPP.
High Quality CRE Portfolio At December 31, 2024 ($ in millions) Property Type Balance % of Total CRE FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Office $ 1,769 28 % 57 % 23 % 20 % 1.57 65.2 % Warehouse/Industrial 1,375 22 % 54 % 8 % 38 % 1.83 47.2 % Multifamily 838 13 % 51 % 49 % — % 2.01 50.1 % Retail 1,098 19 % 49 % 29 % 22 % 1.73 57.3 % Hotel 483 8 % 79 % 9 % 12 % 1.84 44.7 % Construction and Land 562 9 % 36 % 47 % 17 % NA NA Other 89 1 % 74 % 11 % 15 % 1.93 46.9 % $ 6,214 100 % 54 % 25 % 21 % 1.76 55.0 % 12 Florida NY Tri State Property Type Wtd. Avg. DSCR Wtd. Avg. LTV Wtd. Avg. DSCR Wtd. Avg. LTV Office 1.56 65.0 % 1.66 59.9 % Warehouse/Industrial 1.95 45.7 % 1.90 35.1 % Multifamily 2.56 45.4 % 1.43 55.0 % Retail 1.95 55.5 % 1.44 58.3 % Hotel 1.85 44.7 % 1.93 31.8 % Other 2.09 44.8 % 1.22 63.7 % 1.90 53.3 % 1.56 55.3 % Construction and land includes $88 million of office exposure, $85 million in NY New York rent regulated multi-family exposure $116 million
Manageable CRE Maturity Risk At December 31, 2024 ($ in millions) Property Type Maturing in the Next 12 Months % Maturing in the Next 12 Months Fixed Rate or Swapped Maturing in the Next 12 Months Fixed Rate to Borrower Maturing in Next 12 mos. as a % of Total Portfolio Office $ 528 30 % $ 277 16 % Warehouse/Industrial 205 15 % 147 11 % Multifamily 190 23 % 63 7 % Retail 189 17 % 144 13 % Hotel 47 10 % 39 8 % Construction and Land 221 39 % — — % Other 13 14 % 13 14 % $ 1,393 22 % $ 683 11 % 13 Just 11% of total CRE portfolio fixed and maturing in the next 12 months Property Type 2025 2026 2027 2028 2029 Thereafter Total Office $ 528 $ 479 $ 299 $ 145 $ 270 $ 48 $ 1,769 Warehouse/Industrial 205 430 331 161 164 84 1,375 Multifamily 190 162 157 106 139 84 838 Retail 189 248 237 236 127 61 1,098 Hotel 47 240 31 56 55 54 483 Construction and Land 221 148 128 — 20 45 562 Other 13 27 20 1 12 16 89 $ 1,393 $ 1,734 $ 1,203 $ 705 $ 787 $ 392 $ 6,214 Maturity Distribution of CRE Loans
CRE Peer Benchmarking 14 35% 34% 26% Peer Median Peer Mean BankUnited, N.A —% 5% 10% 15% 20% 25% 30% 35% 40% 222% 209% 169% —% 50% 100% 150% 200% 250% 1. BKU information as of December 31, 2024 2. CRE peer median information based on September 30, 2024 Call Report data (most recent date available) for banks with total assets between $10 billion and $100 billion CRE / Total Loans(1)(2) CRE / Total Risk Based Capital(1)(2)
CRE Office Portfolio - Additional Information At December 31, 2024 15 • 20% or $350 million of the total office portfolio is medical office • Rent rollover in next 12 months approximately 12% of the total office portfolio; 15% for FL and 9% in NY Tri State • Manhattan stabilized portfolio has approximately 95% occupancy and rent rollover in the next 12 months of 10% • The Florida portfolio is predominantly suburban 41% 21% 21% 12% 4% 1% Manhattan NY Tri-State Other Long Island Queens Brooklyn Bronx 29% 22%21% 9% 10% 9% Tampa Orlando Boca/Palm Beach Broward Miami-Dade Other NY Tri-State by Sub-Market Florida by Sub-Market
Granular, Diversified Commercial & Industrial Portfolio At December 31, 2024 ($ in millions) Industry Balance(1) % of Portfolio Finance and Insurance $ 1,532 17.1 % Manufacturing 855 9.5 % Utilities 708 7.9 % Health Care and Social Assistance 705 7.8 % Educational Services 680 7.6 % Wholesale Trade 664 7.4 % Information 612 6.8 % Transportation and Warehousing 583 6.5 % Real Estate and Rental and Leasing 450 5.0 % Construction 433 4.8 % Professional, Scientific, and Technical Services 375 4.2 % Retail Trade 343 3.8 % Other Services (except Public Administration) 252 2.8 % Public Administration 238 2.7 % Arts, Entertainment, and Recreation 183 2.0 % Accommodation and Food Services 146 1.6 % Administrative and Support and Waste Management 143 1.6 % Other 81 0.9 % $ 8,983 100.0 % 161. Includes $1.9 billion of owner-occupied real estate Geographic Distribution Florida 33% New York Tri-State 33% Other 34%
$228.2 $8.7 $2.5 $(17.4) $0.1 $1.1 $223.2 Drivers of Change in the ACL - Current Quarter ($ in millions) Risk Rating Migration and Specific Reserves Economic Forecast Net Charge- Offs ACL 12/31/24 ACL 09/30/24 0.92%0.94%% of Total Loans 17 Change in Qualitative Overlay Portfolio and Other • Substantially all charge- offs for the quarter relate to three C&I loans • Current market adjustment • Scenario weighting • Changes to forward path of forecast • New loans net of repayments • Portfolio changes
Drivers of Change in the ACL - Year to Date ($ in millions) $202.7 $40.7 $(15.8) $(38.5) $9.6 $7.4 $17.1 $223.2 Risk Rating Migration and Specific Reserves Economic Forecast Net Charge- Offs Change in Qualitative Overlay ACL 12/31/24 ACL 12/31/23 0.92%0.82%% of Total Loans 18 • Current market adjustment • Changes to forward path of economic forecast • Changes in scenario weighting Portfolio and Other Assumption Changes • New loans net of repayments • Portfolio changes • CRE office • Economic uncertainty
Allocation of the ACL ($ in millions) December 31, 2023 September 30, 2024 December 31, 2024 Balance % of Loans Balance % of Loans Balance % of Loans Commerical: Commercial real estate $ 41.3 0.71 % $ 61.3 1.02 % $ 70.5 1.13 % Commercial and industrial 142.4 1.60 % 151.4 1.68 % 138.0 1.54 % Franchise and equipment finance 10.9 2.85 % 3.3 1.20 % 2.3 1.12 % Total commercial 194.6 1.29 % 216.0 1.41 % 210.8 1.37 % Pinnacle - municipal finance 0.2 0.03 % 0.2 0.03 % 0.1 0.02 % Residential and mortgage warehouse lending 7.9 0.09 % 12.0 0.14 % 12.3 0.15 % Allowance for credit losses $ 202.7 0.82 % $ 228.2 0.94 % $ 223.2 0.92 % Asset Quality Ratios December 31, 2023 September 30, 2024 December 31, 2024 Non-performing loans to total loans(1) 0.52 % 0.92 % 1.03 % Non-performing loans, excluding the guaranteed portion of non- accrual SBA loans, to total loans 0.35 % 0.78 % 0.89 % Non-performing assets to total assets(1) 0.37 % 0.64 % 0.73 % Non-performing assets, excluding the guaranteed portion of non- accrual SBA loans, to total assets 0.25 % 0.54 % 0.63 % Allowance for credit losses to non-performing loans(1) 159.54 % 101.68 % 89.01 % Net charge-offs to average loans(2) 0.09 % 0.12 % 0.16 % 19 1. Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $34.3 million, $35.1 million and $41.8 million at December 31, 2024, September 30, 2024 and December 31, 2023, respectively. 2. Annualized for the nine months ended September 30, 2024; ratios for December 31, 2024 and 2023 are annual net charge-off rates. Office Portfolio ACL: 2.30% at December 31, 2024 compared to 1.18% at December 31, 2023.
Asset Quality Metrics 20 Non-Performing Loans to Total Loans Non-Performing Assets to Total Assets Net Charge-offs to Average Loans(1) 0.88% 1.02% 0.87% 0.42% 0.52% 0.92% 1.03% 0.68% 0.80% 0.68% 0.26% 0.35% 0.78% 0.89% Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 —% 0.25% 0.50% 0.75% 1.00% 1.25% 0.63% 0.71% 0.58% 0.29% 0.37% 0.64% 0.73% 0.49% 0.56% 0.45% 0.18% 0.25% 0.54% 0.63% Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 —% 0.25% 0.50% 0.75% 1.00% 1.25% 0.05% 0.26% 0.29% 0.22% 0.09% 0.12% 0.16% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 —% 0.20% 0.40% 0.60% 1. Annualized for the nine months ended September 30, 2024; ratios for December 31, 2024 and 2023 are annual net charge-off rates. • Increase in NPAs in Q4 2024 primarily related to one CRE office loan
Non-Performing Loans by Portfolio Segment ($ in millions) 21 $205 $244 $206 $105 $127 $224 $251 $19 $29 $29 $21 $21 $21 $24 $24 $60 $30 $61 $86 $65 $43 $58 $22 $34 $87 $97 $35 $45 $33 $13 $24 $16 $6 $46 $51 $46 $40 $42 $35 $34 $16 $16 $10 $9 $6 $4 $4 Non-Guaranteed Portion of SBA Guaranteed Portion of SBA Franchise and Equipment C&I CRE Residential and Other Consumer 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24
Criticized and Classified Loans ($ in millions) 22 Commercial Real Estate(1) Commercial(1)(2) Special Mention Substandard Accruing Substandard Non-accruing and Doubtful 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 $— $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 $— $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 1. Excludes SBA 2. Includes C&I, Pinnacle, franchise and equipment finance, and MWL
Criticized and Classified CRE Loans by Property Type ($ in millions) 23 September 30, 2024 $138 $18 $29 $96 $380 $125 $3 $14 $116 $55 $89 $146 $77 $3 $16 December 31, 2023 $138 $17 $47 $101 $340 $128 $3 $14 Multifamily Hotel Industrial/ Warehouse Retail Office Construction & Land Other SBA December 31, 2024 Construction and land category includes $85 million of office exposure at 12/31/2024
Asset Quality - Delinquencies ($ in millions) 24 Commercial(1) CRE 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 $— $20 $40 $60 $80 $100 Residential(2) 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 $— $20 $40 $60 $80 $100 30-59 Days PD 60-89 Days PD 90 Days+ PD 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 12/31/24 $— $20 $40 $60 $80 $100 1. Includes C&I, Pinnacle, franchise finance and equipment finance 2. Excludes government insured residential loans
Residential Portfolio Overview At December 31, 2024 25 Residential Loan Product Type FICO Distribution(1) Breakdown by LTV(1) 1. Excludes government insured residential loans. FICOs are refreshed routinely. LTVs are typically based on valuation at origination Prior 21% 2020 12% 2021 42% 2022 16% 2023 5% 2024 4% >759 76% 720-759 14% <720 or NA 10% Breakdown by Vintage(1) 30 Yr Fixed 34% 15 & 20 Year Fixed 12% 10/1 ARM 12% 5/1 & 7/1 ARM 27% Formerly Covered 1% Govt Insured 14% High quality residential portfolio consists primarily of high FICO, low LTV, prime jumbo mortgages with de-minimis charge-offs since inception as well as government insured loans 60% or less 33% 61% - 70% 25% 71% - 80% 40% More than 80% 2%
Investment Portfolio 26
High Quality, Short-Duration Securities Portfolio ($ in millions) December 31, 2023 September 30, 2024 December 31, 2024 Portfolio Net Unrealized Loss Fair Value Net Unrealized Gain/(Loss) Fair Value Net Unrealized Gain/(Loss) Fair Value US Government and Agency $ (115) $ 2,656 $ (68) $ 3,162 $ (99) $ 3,421 Private label RMBS and CMOs (301) 2,296 (216) 2,296 (253) 2,238 Private label CMBS (84) 2,199 (42) 2,004 (39) 1,784 Single family real estate-backed securities (18) 366 (6) 346 (8) 327 CLOs (10) 1,113 2 1,070 2 1,133 Other (7) 205 (8) 203 (9) 198 $ (535) $ 8,835 $ (338) $ 9,081 $ (406) $ 9,101 Portfolio Composition US Government and Agency 38% Private label RMBS and CMOs 25% Private label CMBS 20% Single family real estate- backed securities 4% CLOs 12% Other 1% Rating Distribution GOV 38% AAA 52% AA 7% A 2% NR 1% • No expected credit losses on AFS securities • Unrealized losses just 4% of amortized cost • AFS portfolio duration of 1.85; approximately 69% of the portfolio floating rate • No HTM securities 27
High Quality, Short-Duration Securities Portfolio At December 31, 2024 Strong credit enhancement levels - no SASB(1) exposure Private Label RMBS Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 3.0 92.5 17.9 2.2 AA 21.0 37.8 28.9 5.4 A 21.3 21.3 21.3 8.2 NR 20.0 24.7 21.5 12.7 Wtd. Avg. 4.5 87.4 18.6 2.6 Private Label CMBS Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 30.5 98.9 48.5 7.3 AA 33.1 75.3 45.3 7.6 A 27.6 60.2 39.2 10.0 Wtd. Avg. 30.8 94.3 47.7 7.4 CLOs Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 39.1 80.4 46.8 15.8 AA 30.9 34.2 32.4 15.5 A 38.3 38.3 38.3 23.8 Wtd. Avg. 38.1 74.2 44.9 15.9 AAA 92% AA 5% A 1% NR 2% AAA 83% AA 13% A 4% AAA 86% AA 12% A 2% 281. Single-asset, single-borrower
Non-GAAP Financial Measures 29
Non-GAAP Financial Measures 30 Net income and earnings per diluted share, excluding the impact of the FDIC special assessment are non-GAAP financial measures. Disclosure of these measures enhance the reader’s ability to compare the Company’s performance for the quarter ended December 31, 2023 to other periods presented. The following table reconciles these non-GAAP financial measurements to the comparable GAAP financial measurements of net income and earnings per diluted share for the period indicated (in thousands except share and per share data): Quarter ended December 31, 2023 Net income excluding the impact of the FDIC special assessment: Net Income (GAAP) $ 20,812 FDIC special assessment 35,356 Tax effect of adjustment (9,193) Net income excluding the impact of the FDIC special assessment (non-GAAP) $ 46,975 Diluted earnings per common share, excluding the impact of the FDIC special assessment Diluted earnings per common share (GAAP) $ 0.27 Impact on diluted earnings per common share of FDIC special assessment, before allocation to participating securities (non-GAAP) 0.36 Adjustment for earnings reallocated from participating securities (0.01) Diluted earnings per common share, excluding the impact of the FDIC special assessment (non-GAAP) $ 0.62 Impact on diluted earnings per common share of the FDIC special assessment, before allocation of participating securities: FDIC special assessment, net of tax $ 26,163 Weighted average shares for diluted earnings per share (GAAP) 73,456,593 Impact on diluted earnings per common share of the FDIC special assessment, before allocation of participating securities (non-GAAP) $ 0.36 Impact of diluted earnings per common share of the FDIC special assessment allocated to participating securities: FDIC special assessment, net of tax, allocated to participating securities $ (590) Weighted average shares for diluted earnings per share (GAAP) 73,456,593 Impact of diluted earnings per common share of the FDIC special assessment allocated to participating securities (non-GAAP) $ (0.01)
Non-GAAP Financial Measures 31 Return on average assets and return on average stockholders’ equity excluding the impact of the FDIC special assessment are non-GAAP financial measures. Disclosure of these measures enhance the reader’s ability to compare the Company’s performance for the quarter ended December 31, 2023 to other periods presented. The following table reconciles these non-GAAP financial measurements to the comparable GAAP financial measurement of return on average assets and return on average stockholders’ equity for the period indicated (in thousands): Quarter ended December 31, 2023 Net income excluding the impact of the FDIC special assessment: Net Income (GAAP) $ 20,812 FDIC special assessment 35,356 Tax effect of adjustment (9,193) Net income excluding the impact of the FDIC special assessment (non-GAAP) $ 46,975 Average assets $ 35,585,054 Return on average assets (GAAP) 0.23 % Return on average assets excluding impact of FDIC special assessment (non-GAAP) 0.52 % Average stockholders’ equity $ 2,568,960 Return on stockholders’ equity (GAAP) 3.2 % Return on stockholders’ equity excluding impact of FDIC special assessment (non-GAAP) 7.3 %