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): April 28, 2025 (April 28, 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 April 28, 2025, BankUnited, Inc. (the “Company”) reported its results for the quarter ended March 31, 2025. 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 | April 28, 2025 |
| 99.2 | Supplemental information relating to the press release dated | April 28, 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: | April 28, 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 | April 28, 2025 |
| 99.2 | Supplemental information relating to the press release dated | April 28, 2025 |
4
Document
Exhibit 99.1
BANKUNITED, INC. REPORTS FIRST QUARTER 2025 RESULTS
Miami Lakes, Fla. — April 28, 2025 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2025.
"We're happy to start the year on a strong note, and remain fairly optimistic about our prospects for the year in spite of the uncertainty in the macro-environment" said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended March 31, 2025, the Company reported net income of $58.5 million, or $0.78 per diluted share, compared to $69.3 million, or $0.91 per diluted share, for the immediately preceding quarter ended December 31, 2024 and $48.0 million, or $0.64 per diluted share, for the quarter ended March 31, 2024.
Quarterly Highlights
•The Company's funding profile continued to improve this quarter. Non-interest bearing demand deposits ("NIDDA") grew by $453 million, or 5.9%, for the quarter ended March 31, 2025, to 29% of total deposits, up from 27% at December 31, 2024. NIDDA grew by $830 million compared to March 31, 2024, one year ago.
•Non-brokered deposits grew by $719 million, or 3.2%, for the quarter ended March 31, 2025 while total deposits grew by $192 million.
•Wholesale funding, including FHLB advances and brokered deposits, declined by $1.1 billion for the quarter ended March 31, 2025.
•Total loans declined by $308 million for the quarter ended March 31, 2025. The core CRE and C&I segments declined by $106 million. Commercial loan growth is typically seasonally lower in the first quarter, and continued to be impacted by a high level of payoffs. Consistent with our balance sheet strategy, the residential, franchise, equipment and municipal finance portfolios declined by a combined $196 million.
•The loan to deposit ratio declined to 85.5% at March 31, 2025, from 87.2% at December 31, 2024.
•The net interest margin, calculated on a tax-equivalent basis, was 2.81% for the quarter ended March 31, 2025 compared to 2.84% for the immediately preceding quarter, reflecting the impact of declining rates on a modestly asset sensitive balance sheet and the expiration of certain cash flow hedges. Net interest income declined by $6.1 million compared to the prior quarter.
•The average cost of total deposits declined by 0.14% to 2.58% for the quarter ended March 31, 2025 from 2.72% for the immediately preceding quarter ended December 31, 2024. The spot APY of total deposits declined to 2.52% at March 31, 2025 from 2.63% at December 31, 2024.
•The annualized net charge-off ratio for the quarter ended March 31, 2025 was 0.33%. The net charge-off ratio for the trailing twelve months was 0.24%. The NPA ratio was 0.76%, including 0.09% related to the guaranteed portion of non-accrual SBA loans at March 31, 2025 compared to 0.73% including 0.10% related to the guaranteed portion of non-accrual SBA loans at December 31, 2024.
•The ratio of the ACL to total loans was 0.92% at March 31, 2025, consistent with the prior quarter-end. The ratio of the ACL to non-performing loans was 84.58%. The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.34% at March 31, 2025 and the ACL to loans ratio for CRE office loans was 1.99%. The provision for credit losses was $15.1 million for the quarter ended March 31, 2025 compared to $11.0 million for the preceding quarter.
•Our commercial real estate exposure totaled 26% of loans and 173% of the Bank's total risk based capital at March 31, 2025. By comparison, based on call report data as of December 31, 2024 for banks with between $10 billion and $100 billion in assets, the median level of CRE to total loans was 34% and the median level of CRE to total risk based capital was 218%.
•At March 31, 2025, the weighted average LTV of the CRE portfolio was 54.9%, the weighted average DSCR was 1.78, 53% 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 64.5%, the weighted average DSCR was 1.58, 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 March 31, 2025, CET1 was 12.2% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was 11.2% at March 31, 2025. The ratio of tangible common equity to tangible assets increased to 8.11% at March 31, 2025.
•Book value and tangible book value per common share continued to accrete, to $38.51 and $37.48, respectively, at March 31, 2025, compared to $37.65 and $36.61, respectively, at December 31, 2024, and $35.31 and $34.27, respectively, at March 31, 2024.
•The Company announced an increase of $0.02 per share in its common stock dividend for the quarter ended March 31, 2025, to $0.31 per common share, a 7% increase from the previous level of $0.29 per share.
Loans
Loan portfolio composition at the dates indicated follows (dollars in thousands):
| March 31, 2025 | December 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| Core C&I and CRE sub-segments: | ||||||||
| Non-owner occupied commercial real estate | $ | 5,602,711 | 23.4 | % | $ | 5,652,203 | 23.3 | % |
| Construction and land | 603,385 | 2.5 | % | 561,989 | 2.3 | % | ||
| Owner occupied commercial real estate | 1,967,984 | 8.2 | % | 1,941,004 | 8.0 | % | ||
| Commercial and industrial | 6,916,996 | 28.8 | % | 7,042,222 | 28.9 | % | ||
| 15,091,076 | 62.9 | % | 15,197,418 | 62.5 | % | |||
| Franchise and equipment finance | 165,095 | 0.7 | % | 213,477 | 0.9 | % | ||
| Pinnacle - municipal finance | 688,986 | 2.9 | % | 720,661 | 3.0 | % | ||
| Mortgage warehouse lending ("MWL") | 580,248 | 2.4 | % | 585,610 | 2.4 | % | ||
| Residential | 7,464,494 | 31.1 | % | 7,580,814 | 31.2 | % | ||
| $ | 23,989,899 | 100.0 | % | $ | 24,297,980 | 100.0 | % |
For the quarter ended March 31, 2025, total loans declined by $308 million.The core C&I and CRE sub-segments declined by $106 million; while production was in line with expectations, seasonality and a continued high level of unscheduled payoffs and strategic exits contributed to the decline. Consistent with our balance sheet strategy, residential loans declined by $116 million, and the franchise, equipment, and municipal finance portfolios declined by an aggregate $80 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 March 31, 2025 and December 31, 2024 (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, 2024 | $ | 223,153 | 0.92 | % | 1.37 | % | 89.01 | % | 0.16 | % |
| March 31, 2025 | $ | 219,747 | 0.92 | % | 1.34 | % | 84.58 | % | 0.33 | % |
(1) Annualized for the three months ended March 31, 2025; ratio for December 31, 2024 represents annual net charge-off rate.
(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 ACL at March 31, 2025 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 March 31, 2025, the provision for credit losses, including both funded and unfunded loan commitments, was $15.1 million, compared to $11.0 million for the immediately preceding quarter ended December 31, 2024 and $15.3 million for the quarter ended March 31, 2024. The most significant factor leading to the decrease in ACL for the quarter was net charge offs, the impact of which was partially offset by increases in specific reserves, risk rating migration and an increase in qualitative overlays, particularly related to economic uncertainty.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||
| Beginning balance | $ | 223,153 | $ | 228,249 | $ | 202,689 |
| Provision | 15,963 | 12,267 | 15,805 | |||
| Net charge-offs | (19,369) | (17,363) | (938) | |||
| Ending balance | $ | 219,747 | $ | 223,153 | $ | 217,556 |
Total criticized and classified commercial loans were essentially flat quarter-over-quarter, as shown in the following table (in thousands):
| March 31, 2025 | December 31, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| CRE | Total Commercial | CRE | Total Commercial | ||||||
| Special mention | $ | 70,579 | $ | 193,206 | $ | 58,771 | $ | 262,387 | |
| Substandard - accruing | 649,867 | 962,342 | 633,614 | 894,754 | |||||
| Substandard - non-accruing | 92,648 | 227,567 | 95,378 | 219,758 | |||||
| Doubtful | — | 2,026 | — | 6,856 | |||||
| Total | $ | 813,094 | $ | 1,385,141 | $ | 787,763 | $ | 1,383,755 |
Non-performing loans totaled $259.8 million or 1.08% of total loans at March 31, 2025, compared to $250.7 million or 1.03% of total loans at December 31, 2024. Non-performing loans included $33.0 million and $34.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.14% of total loans at both March 31, 2025 and December 31, 2024.
Net Interest Income
Net interest income for the quarter ended March 31, 2025 was $233.1 million, compared to $239.3 million for the immediately preceding quarter ended December 31, 2024, and $214.9 million for the quarter ended March 31, 2024. Interest income decreased by $24.3 million for the quarter ended March 31, 2025 compared to the immediately preceding quarter, while interest expense decreased by $18.2 million. The quarter-over-quarter decline in interest income related to lower yields on interest earning assets as coupon rates on floating rate instruments reset down and to a lesser extent, the lower average balance of interest earning assets. The decline in interest expense related to both a lower average cost of funds and lower average balance of interest bearing liabilities.
The Company’s net interest margin, calculated on a tax-equivalent basis, decreased by 0.03% to 2.81% for the quarter ended March 31, 2025, from 2.84% for the immediately preceding quarter ended December 31, 2024. The decline in margin reflects the impact of a declining rate environment on a modestly asset sensitive balance sheet and expiration of certain cash flow hedges. Factors impacting the net interest margin for the quarter ended March 31, 2025 were:
•The average rate paid on interest bearing deposits declined to 3.54% for the quarter ended March 31, 2025, from 3.75% for the quarter ended December 31, 2024. This decline reflected continued initiatives taken to lower rates paid on deposits as short-term market rates declined, including the re-pricing of time deposits.
•The average rate paid on FHLB advances declined to 3.69% for the quarter ended March 31, 2025 from 3.82% for the quarter ended December 31, 2024, primarily due to repayment of higher rate short-term advances partially offset by expiration of cash flow hedges.
•The tax-equivalent yield on loans declined to 5.48% for the quarter ended March 31, 2025, from 5.60% for the quarter ended December 31, 2024. The primary driver of this decrease was coupon rate resets on variable rate loans.
•The tax-equivalent yield on investments declined to 5.07% for the quarter ended March 31, 2025, from 5.31% for the quarter ended December 31, 2024. This decrease resulted primarily from coupon rate resets on variable rate securities.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Monday, April 28, 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-conf.media-server.com/register/BI6d362bb51b864c1bae498c18ea9aa2f9. 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 $34.8 billion at March 31, 2025, 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, 2024, 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)
| March 31,<br>2025 | December 31,<br>2024 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Cash and due from banks: | ||||
| Non-interest bearing | $ | 12,727 | $ | 12,078 |
| Interest bearing | 431,018 | 479,038 | ||
| Cash and cash equivalents | 443,745 | 491,116 | ||
| Investment securities | 9,099,809 | 9,130,244 | ||
| Non-marketable equity securities | 181,359 | 206,297 | ||
| Loans | 23,989,899 | 24,297,980 | ||
| Allowance for credit losses | (219,747) | (223,153) | ||
| Loans, net | 23,770,152 | 24,074,827 | ||
| Bank owned life insurance | 293,886 | 284,570 | ||
| Operating lease equipment, net | 218,621 | 223,844 | ||
| Goodwill | 77,637 | 77,637 | ||
| Other assets | 746,788 | 753,207 | ||
| Total assets | $ | 34,831,997 | $ | 35,241,742 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| Liabilities: | ||||
| Demand deposits: | ||||
| Non-interest bearing | $ | 8,069,275 | $ | 7,616,182 |
| Interest bearing | 4,776,223 | 4,892,814 | ||
| Savings and money market | 10,788,919 | 11,055,418 | ||
| Time | 4,423,408 | 4,301,289 | ||
| Total deposits | 28,057,825 | 27,865,703 | ||
| FHLB advances | 2,405,000 | 2,930,000 | ||
| Notes and other borrowings | 709,091 | 708,553 | ||
| Other liabilities | 762,499 | 923,168 | ||
| Total liabilities | 31,934,415 | 32,427,424 | ||
| Commitments and contingencies | ||||
| Stockholders' equity: | ||||
| Common stock, par value $0.01 per share, 400,000,000 shares authorized; 75,242,048 and 74,748,370 shares issued and outstanding | 752 | 747 | ||
| Paid-in capital | 301,321 | 301,672 | ||
| Retained earnings | 2,831,743 | 2,796,440 | ||
| Accumulated other comprehensive loss | (236,234) | (284,541) | ||
| Total stockholders' equity | 2,897,582 | 2,814,318 | ||
| Total liabilities and stockholders' equity | $ | 34,831,997 | $ | 35,241,742 |
BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||
| Interest income: | ||||||
| Loans | $ | 321,384 | $ | 336,816 | $ | 347,257 |
| Investment securities | 113,869 | 121,872 | 124,179 | |||
| Other | 8,436 | 9,300 | 10,038 | |||
| Total interest income | 443,689 | 467,988 | 481,474 | |||
| Interest expense: | ||||||
| Deposits | 174,210 | 188,853 | 209,998 | |||
| Borrowings | 36,340 | 39,876 | 56,619 | |||
| Total interest expense | 210,550 | 228,729 | 266,617 | |||
| Net interest income before provision for credit losses | 233,139 | 239,259 | 214,857 | |||
| Provision for credit losses | 15,111 | 11,001 | 15,285 | |||
| Net interest income after provision for credit losses | 218,028 | 228,258 | 199,572 | |||
| Non-interest income: | ||||||
| Deposit service charges and fees | 5,235 | 4,988 | 5,313 | |||
| Gain on investment securities, net | 944 | 804 | 775 | |||
| Lease financing | 4,313 | 7,162 | 11,440 | |||
| Other non-interest income | 11,778 | 12,251 | 9,349 | |||
| Total non-interest income | 22,270 | 25,205 | 26,877 | |||
| Non-interest expense: | ||||||
| Employee compensation and benefits | 82,746 | 82,315 | 75,920 | |||
| Occupancy and equipment | 11,343 | 11,776 | 10,569 | |||
| Deposit insurance expense | 7,227 | 6,662 | 13,530 | |||
| Technology | 22,780 | 21,002 | 20,315 | |||
| Depreciation of operating lease equipment | 4,009 | 4,352 | 9,213 | |||
| Other non-interest expense | 32,121 | 34,365 | 29,693 | |||
| Total non-interest expense | 160,226 | 160,472 | 159,240 | |||
| Income before income taxes | 80,072 | 92,991 | 67,209 | |||
| Provision for income taxes | 21,596 | 23,689 | 19,229 | |||
| Net income | $ | 58,476 | $ | 69,302 | $ | 47,980 |
| Earnings per common share, basic | $ | 0.78 | $ | 0.92 | $ | 0.64 |
| Earnings per common share, diluted | $ | 0.78 | $ | 0.91 | $ | 0.64 |
BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
| Three Months Ended March 31, | Three Months Ended December 31, | Three Months Ended March 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2024 | ||||||||||||||||
| 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 | $ | 23,933,938 | $ | 324,113 | 5.48 | % | $ | 24,152,602 | $ | 339,725 | 5.60 | % | $ | 24,337,440 | $ | 350,441 | 5.78 | % |
| Investment securities (3) | 9,104,228 | 114,590 | 5.07 | % | 9,236,863 | 122,648 | 5.31 | % | 8,952,453 | 125,025 | 5.59 | % | ||||||
| Other interest earning assets | 788,547 | 8,436 | 4.33 | % | 785,947 | 9,300 | 4.71 | % | 763,460 | 10,038 | 5.29 | % | ||||||
| Total interest earning assets | 33,826,713 | 447,139 | 5.34 | % | 34,175,412 | 471,673 | 5.50 | % | 34,053,353 | 485,504 | 5.72 | % | ||||||
| Allowance for credit losses | (228,158) | (235,211) | (206,747) | |||||||||||||||
| Non-interest earning assets | 1,376,904 | 1,405,129 | 1,589,333 | |||||||||||||||
| Total assets | $ | 34,975,459 | $ | 35,345,330 | $ | 35,435,939 | ||||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||
| Interest bearing demand deposits | $ | 4,811,826 | $ | 39,893 | 3.36 | % | $ | 5,045,860 | $ | 46,759 | 3.69 | % | $ | 3,584,363 | $ | 33,507 | 3.76 | % |
| Savings and money market deposits | 10,833,734 | 91,779 | 3.44 | % | 10,462,295 | 93,912 | 3.57 | % | 11,234,259 | 118,639 | 4.25 | % | ||||||
| Time deposits | 4,326,750 | 42,538 | 3.99 | % | 4,529,737 | 48,182 | 4.23 | % | 5,231,178 | 57,852 | 4.45 | % | ||||||
| Total interest bearing deposits | 19,972,310 | 174,210 | 3.54 | % | 20,037,892 | 188,853 | 3.75 | % | 20,049,800 | 209,998 | 4.21 | % | ||||||
| FHLB advances | 2,991,389 | 27,206 | 3.69 | % | 3,200,652 | 30,750 | 3.82 | % | 4,570,220 | 47,496 | 4.18 | % | ||||||
| Notes and other borrowings | 709,037 | 9,134 | 5.15 | % | 708,689 | 9,126 | 5.15 | % | 709,017 | 9,123 | 5.15 | % | ||||||
| Total interest bearing liabilities | 23,672,736 | 210,550 | 3.61 | % | 23,947,233 | 228,729 | 3.80 | % | 25,329,037 | 266,617 | 4.23 | % | ||||||
| Non-interest bearing demand deposits | 7,413,117 | 7,557,267 | 6,560,926 | |||||||||||||||
| Other non-interest bearing liabilities | 1,004,917 | 995,789 | 906,266 | |||||||||||||||
| Total liabilities | 32,090,770 | 32,500,289 | 32,796,229 | |||||||||||||||
| Stockholders' equity | 2,884,689 | 2,845,041 | 2,639,710 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 34,975,459 | $ | 35,345,330 | $ | 35,435,939 | ||||||||||||
| Net interest income | $ | 236,589 | $ | 242,944 | $ | 218,887 | ||||||||||||
| Interest rate spread | 1.73 | % | 1.70 | % | 1.49 | % | ||||||||||||
| Net interest margin | 2.81 | % | 2.84 | % | 2.57 | % |
(1) On a tax-equivalent basis where applicable
(2) Annualized
(3) At fair value
BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| c | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||
| Basic earnings per common share: | ||||||
| Numerator: | ||||||
| Net income | $ | 58,476 | $ | 69,302 | $ | 47,980 |
| Distributed and undistributed earnings allocated to participating securities | (821) | (1,598) | (680) | |||
| Income allocated to common stockholders for basic earnings per common share | $ | 57,655 | $ | 67,704 | $ | 47,300 |
| Denominator: | ||||||
| Weighted average common shares outstanding | 74,918,750 | 74,750,961 | 74,509,107 | |||
| Less average unvested stock awards | (1,101,408) | (1,075,384) | (1,127,838) | |||
| Weighted average shares for basic earnings per common share | 73,817,342 | 73,675,577 | 73,381,269 | |||
| Basic earnings per common share | $ | 0.78 | $ | 0.92 | $ | 0.64 |
| Diluted earnings per common share: | ||||||
| Numerator: | ||||||
| Income allocated to common stockholders for basic earnings per common share | $ | 57,655 | $ | 67,704 | $ | 47,300 |
| Adjustment for earnings reallocated from participating securities | 4 | (198) | 1 | |||
| Income used in calculating diluted earnings per common share | $ | 57,659 | $ | 67,506 | $ | 47,301 |
| Denominator: | ||||||
| Weighted average shares for basic earnings per common share | 73,817,342 | 73,675,577 | 73,381,269 | |||
| Dilutive effect of certain share-based awards | 562,488 | 616,913 | 255,824 | |||
| Weighted average shares for diluted earnings per common share | 74,379,830 | 74,292,490 | 73,637,093 | |||
| Diluted earnings per common share | $ | 0.78 | $ | 0.91 | $ | 0.64 |
BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
| At or for the Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||||||
| Financial ratios (4) | |||||||||||||||
| Return on average assets | 0.68 | % | 0.78 | % | 0.54 | % | |||||||||
| Return on average stockholders’ equity | 8.2 | % | 9.7 | % | 7.3 | % | |||||||||
| Net interest margin (3) | 2.81 | % | 2.84 | % | 2.57 | % | |||||||||
| Loans to deposits | 85.5 | % | 87.2 | % | 89.6 | % | |||||||||
| Tangible book value per common share | $ | 37.48 | $ | 36.61 | $ | 34.27 | March 31, 2025 | December 31, 2024 | |||||||
| --- | --- | --- | --- | --- | |||||||||||
| Asset quality ratios | |||||||||||||||
| Non-performing loans to total loans (1)(5) | 1.08 | % | 1.03 | % | |||||||||||
| Non-performing assets to total assets (2)(5) | 0.76 | % | 0.73 | % | |||||||||||
| Allowance for credit losses to total loans | 0.92 | % | 0.92 | % | |||||||||||
| Allowance for credit losses to commercial loans (6) | 1.34 | % | 1.37 | % | |||||||||||
| Allowance for credit losses to non-performing loans (1)(5) | 84.58 | % | 89.01 | % | |||||||||||
| Net charge-offs to average loans(7) | 0.33 | % | 0.16 | % |
(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 March 31, 2025, December 31, 2024 and March 31, 2024.
(5) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $33.0 million or 0.14% of total loans and 0.09% of total assets at March 31, 2025, and $34.3 million or 0.14% of total loans and 0.10% of total assets at December 31, 2024.
(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 three months ended March 31, 2025; ratio for December 31, 2024 represents annual net charge-off rate.
| March 31, 2025 | December 31, 2024 | Required to be Considered Well Capitalized | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| BankUnited, Inc. | BankUnited, N.A. | BankUnited, Inc. | BankUnited, N.A. | ||||||||
| Capital ratios | |||||||||||
| Tier 1 leverage | 8.7 | % | 9.5 | % | 8.5 | % | 9.7 | % | 5.0 | % | |
| Common Equity Tier 1 ("CET1") risk-based capital | 12.2 | % | 13.4 | % | 12.0 | % | 13.7 | % | 6.5 | % | |
| Total risk-based capital | 14.3 | % | 14.3 | % | 14.1 | % | 14.6 | % | 10.0 | % | |
| Tangible Common Equity/Tangible Assets | 8.1 | % | N/A | 7.8 | % | 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):
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||
|---|---|---|---|---|---|---|
| Total stockholders’ equity | $ | 2,897,582 | $ | 2,814,318 | $ | 2,640,392 |
| Less: goodwill and other intangible assets | 77,637 | 77,637 | 77,637 | |||
| Tangible stockholders’ equity | $ | 2,819,945 | $ | 2,736,681 | $ | 2,562,755 |
| Common shares issued and outstanding | 75,242,048 | 74,748,370 | 74,772,706 | |||
| Book value per common share | $ | 38.51 | $ | 37.65 | $ | 35.31 |
| Tangible book value per common share | $ | 37.48 | $ | 36.61 | $ | 34.27 |
11
exhibit99203312025
April 28, 2025 Q1 2025 – 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, 2024 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 • Non-brokered deposits grew by $719 million • NIDDA grew by 6% or $453 million • NIDDA at 29% of total deposits, up from 27% at 12/31/24 • Wholesale funding down $1.1 billion • Core C&I and CRE loans, impacted by seasonality, declined by $106 million • Lower yielding and non-core resi, franchise, equipment and municipal finance declined an aggregate $196 million • NIM was 2.81% compared to 2.84% for the prior quarter • Cost of deposits declined to 2.58% from 2.72%, down 0.14% • CET 1 ratio 12.2%; TCE/TA 8.11% • Same day available liquidity $15.6 billion Manage credit • ACL/Loans consistent at 0.92%; commercial ACL 1.34%; office ACL 1.99% • Annualized net charge-off rate 0.33%, 0.24% for trailing 12 months • NPA ratio excluding guaranteed SBA loans 0.67% 4
Highlights from First Quarter Earnings Change From ($ in millions, except per share data) Q1’25 Q4’24 Q1’24 Q4’24 Q1’24 Key Highlights Net Interest Income $233 $239 $215 ($6) $18 Provision for Credit Losses $15 $11 $15 $4 $— Total Non-interest Income $22 $25 $27 ($3) ($5) Q4 2024 included $2.5mm of residual leasing income Total Non-interest Expense $160 $160 $159 $— $1 expenses flat Net Income $58 $69 $48 ($11) $10 EPS $0.78 $0.91 $0.64 ($0.13) $0.14 Period-end Core C&I and CRE loans $15,091 $15,197 $14,501 ($106) $590 Period-end Loans $23,990 $24,298 $24,226 ($308) ($236) impacted by strategic runoff of resi and unscheduled C&I payoffs. Non-interest DDA as a percentage of total deposits 29% 27% 27% 2% 2% Non-interest DDA $8,069 $7,616 $7,240 $453 $830 Period-end Deposits $28,058 $27,866 $27,027 $192 $1,031 Loans to Deposits 85.5% 87.2% 89.6% (1.7%) (4.1%) CET1 12.2% 12.0% 11.6% 0.2% 0.6% Total Capital 14.3% 14.1% 13.7% 0.2% 0.6% Yield on Loans 5.48% 5.60% 5.78% (0.12%) (0.30%) Yield on Securities 5.07% 5.31% 5.59% (0.24%) (0.52%) Cost of Deposits 2.58% 2.72% 3.18% (0.14%) (0.60%) Net Interest Margin 2.81% 2.84% 2.57% (0.03%) 0.24% Non-performing Assets to Total Assets(1) 0.76% 0.73% 0.34% 0.03% 0.42% Allowance for Credit Losses to Total Loans 0.92% 0.92% 0.90% —% 0.02% Commercial Allowance for Credit Losses to Total Commercial Loans(3) 1.34% 1.37% 1.42% (0.03)% (0.08)% Net Charge-offs to Average Loans(2) 0.33% 0.16% 0.02% 0.17% 0.31% 1. Includes guaranteed portion of non-accrual SBA loans. 2. Annualized for the three months ended March 31, 2025 and March 31, 2024; ratio for December 31, 2024 represents annual net charge-off rate. 3. For purposes of this ratio, commercial loans includes the core C&I and CRE sub-segments as well as franchise and equipment finance. Due to their unique risk profiles, MWL and municipal finance are excluded from this ratio. 5
Deposits 6
Deposit Trends ($ in millions) $4,807 $3,384 $4,268 $5,164 $4,301 $4,424 $12,660 $13,369 $13,061 $11,136 $11,056 $10,789 $3,020 $3,709 $2,142 $3,403 $4,893 $4,776 $7,009 $8,976 $8,038 $6,835 $7,616 $8,069 $27,496 $29,438 $27,509 $26,538 $27,866 $28,058 Non-interest Demand Interest Demand Money Market / Savings Time 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25 Quarterly Cost of Deposits 0.43% 0.19% 1.42% 2.96% 2.72% 2.58% Non-interest bearing as a % of Total Deposits 25.5% 30.5% 29.2% 25.8% 27.3% 28.8% 7
Cost of Funds Trend 8 0.36% 0.16% 1.92% 3.18% 2.63% 2.52% 0.25% 0.25% 4.50% 5.50% 4.50% 4.50% Spot APY - Total Deposits Target Federal Funds Rate Upper Bound 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25 (1.00)% —% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Spot Average Annual Percentage Yield (“APY”) At December 31, 2020 At December 31, 2021 At December 31, 2022 At December 31, 2023 At December 31, 2024 At March 31, 2025 Total non-maturity deposits 0.29% 0.14% 1.83% 2.87% 2.37% 2.25% Total interest-bearing deposits 0.48% 0.23% 2.66% 4.20% 3.58% 3.47% Total deposits 0.36% 0.16% 1.92% 3.18% 2.63% 2.52% Spread Between Fed Funds Upper Bound and Spot APY of Total Deposits
Loans and the Allowance for Credit Losses 9
10 Prudently Underwritten and Well-Diversified Loan Portfolio At March 31, 2025 ($ in millions) Loan Portfolio Over Time $6,348 $8,368 $8,901 $8,209 $7,581 $7,465 $6,896 $5,702 $5,700 $5,819 $6,214 $6,206 $6,448 $6,735 $8,305 $8,907 $8,982 $8,885 $1,259 $1,092 $525 $433 $586 $580$2,915 $1,868 $1,455 $1,266 $935 $854 $23,866 $23,765 $24,886 $24,634 $24,298 $23,990 Other (1) Mortgage Warehouse Lending C&I CRE Residential 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25 1. Includes Pinnacle municipal finance, franchise and equipment finance, and PPP.
High Quality CRE Portfolio At March 31, 2025 ($ in millions) Property Type Balance % of Total CRE FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Office $ 1,717 28 % 57 % 23 % 20 % 1.58 64.5 % Warehouse/Industrial 1,305 21 % 52 % 8 % 40 % 1.81 46.5 % Multifamily 822 13 % 52 % 48 % — % 2.01 49.8 % Retail 1,189 19 % 48 % 28 % 24 % 1.80 58.2 % Hotel 480 8 % 78 % 10 % 12 % 1.84 44.7 % Construction and Land 603 10 % 31 % 46 % 23 % NA NA Other 90 1 % 75 % 11 % 14 % 2.61 45.7 % $ 6,206 100 % 53 % 25 % 22 % 1.78 54.9 % 11 Florida NY Tri State Property Type Wtd. Avg. DSCR Wtd. Avg. LTV Wtd. Avg. DSCR Wtd. Avg. LTV Office 1.59 63.9 % 1.67 60.3 % Warehouse/Industrial 1.96 44.4 % 1.83 34.3 % Multifamily 2.60 43.6 % 1.36 56.5 % Retail 1.93 55.7 % 1.47 59.0 % Hotel 1.85 44.9 % 1.91 33.0 % Other 2.99 43.0 % 1.20 62.9 % 1.93 52.6 % 1.54 56.1 % Construction and land includes $87 million of office exposure, $84 million in NY New York rent regulated multi-family exposure $113 million
Manageable CRE Maturity Risk At March 31, 2025 ($ 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 $ 667 39 % $ 383 22 % Warehouse/Industrial 161 12 % 114 9 % Multifamily 229 28 % 84 10 % Retail 195 16 % 150 13 % Hotel 43 9 % 35 7 % Construction and Land 217 36 % 42 7 % Other 39 43 % 39 43 % $ 1,551 25 % $ 847 14 % 12 14% of total CRE portfolio fixed and maturing in the next 12 months Property Type 2025 2026 2027 2028 2029 Thereafter Total Office $ 469 $ 486 $ 298 $ 145 $ 270 $ 49 $ 1,717 Warehouse/Industrial 152 402 333 155 164 99 1,305 Multifamily 196 143 151 105 139 88 822 Retail 176 277 208 247 126 155 1,189 Hotel 43 239 31 61 54 52 480 Construction and Land 158 198 173 — 22 52 603 Other 13 26 19 1 11 20 90 $ 1,207 $ 1,771 $ 1,213 $ 714 $ 786 $ 515 $ 6,206 Maturity Distribution of CRE Loans
CRE Peer Benchmarking 13 34% 33% 26% Peer Median Peer Mean BankUnited, N.A —% 5% 10% 15% 20% 25% 30% 35% 40% 218% 203% 173% —% 50% 100% 150% 200% 250% 1. BKU information as of March 31, 2025 2. CRE peer median information based on December 31, 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 March 31, 2025 14 • 20% or $347 million of the total office portfolio is medical office • Rent rollover in next 12 months approximately 9% of the total office portfolio; 11% for FL and 8% in NY Tri State • Manhattan stabilized portfolio has approximately 95% occupancy and rent rollover in the next 12 months of 9% • The Florida portfolio is predominantly suburban 42% 21% 19% 13% 4% 1% Manhattan Long Island NY Tri-State Other Queens Brooklyn Bronx 30% 21%21% 10% 9% 9% Tampa Orlando Boca/Palm Beach Miami-Dade Other Broward NY Tri-State by Sub-Market Florida by Sub-Market
Granular, Diversified Commercial & Industrial Portfolio At March 31, 2025 ($ in millions) Industry Balance(1) % of Portfolio Finance and Insurance $ 1,458 16.4 % Health Care and Social Assistance 801 9.0 % Manufacturing 795 9.0 % Utilities 792 8.9 % Wholesale Trade 651 7.3 % Educational Services 639 7.2 % Information 580 6.5 % Transportation and Warehousing 551 6.2 % Real Estate and Rental and Leasing 481 5.4 % Construction 475 5.3 % Retail Trade 338 3.8 % Professional, Scientific, and Technical Services 335 3.8 % Public Administration 238 2.7 % Other Services (except Public Administration) 235 2.6 % Arts, Entertainment, and Recreation 176 2.0 % Accommodation and Food Services 147 1.7 % Administrative and Support and Waste Management 112 1.3 % Other 81 0.9 % $ 8,885 100.0 % 151. Includes $2.0 billion of owner-occupied real estate Geographic Distribution Florida 33% New York Tri-State 33% Other 34%
$223.2 $13.4 $0.5 $8.1 $(1.4) $(4.7) $(19.4) $219.7 Drivers of Change in the ACL - Current Quarter ($ in millions) Risk Rating Migration and Specific Reserves Economic Forecast Net Charge- Offs ACL 03/31/25 ACL 12/31/24 0.92%0.92%% of Total Loans 16 Change in Qualitative Overlay Portfolio Changes and Other • Current market adjustment • Scenario weighting • Changes to forward path of forecast • New loans net of repayments • Portfolio changes Assumption and Modeling Updates • Primarily related to economic uncertainty
Allocation of the ACL ($ in millions) December 31, 2024 March 31, 2025 Balance % of Loans Balance % of Loans Commercial: Commercial real estate $ 70.5 1.13 % $ 65.6 1.06 % Commercial and industrial 138.0 1.54 % 136.6 1.54 % Franchise and equipment finance 2.3 1.12 % 1.6 0.96 % Total commercial 210.8 1.37 % 203.8 1.34 % Pinnacle - municipal finance 0.1 0.02 % 0.1 0.02 % Residential and mortgage warehouse lending 12.3 0.15 % 15.8 0.20 % Allowance for credit losses $ 223.2 0.92 % $ 219.7 0.92 % Asset Quality Ratios December 31, 2024 March 31, 2025 Non-performing loans to total loans(1) 1.03 % 1.08 % Non-performing loans, excluding the guaranteed portion of non-accrual SBA loans, to total loans 0.89 % 0.94 % Non-performing assets to total assets(1) 0.73 % 0.76 % Non-performing assets, excluding the guaranteed portion of non-accrual SBA loans, to total assets 0.63 % 0.67 % Allowance for credit losses to non-performing loans(1) 89.01 % 84.58 % Net charge-offs to average loans(2) 0.16 % 0.33 % 17 1. Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $33.0 million and $34.3 million at March 31, 2025 and December 31, 2024, respectively. 2. Annualized for the three months ended March 31, 2025. For the trailing 12 months, the net charge-off ratio was 0.24%. Office Portfolio ACL: 1.99% at March 31, 2025 compared to 2.30% at December 31, 2024.
Asset Quality Metrics 18 Non-Performing Loans to Total Loans Non-Performing Assets to Total Assets Net Charge-offs to Average Loans(1) 1.02% 0.87% 0.42% 0.52% 1.03% 1.08% 0.80% 0.68% 0.26% 0.35% 0.89% 0.94% Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25 —% 0.25% 0.50% 0.75% 1.00% 1.25% 0.71% 0.58% 0.29% 0.37% 0.73% 0.76% 0.56% 0.45% 0.18% 0.25% 0.63% 0.67% Incl. guaranteed portion of non-accrual SBA loans Excl. guaranteed portion of non-accrual SBA loans 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25 —% 0.25% 0.50% 0.75% 1.00% 1.25% 0.26% 0.29% 0.22% 0.09% 0.16% 0.33% 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25 —% 0.20% 0.40% 0.60% 1. Annualized for the three months ended March 31, 2025.
Non-Performing Loans by Portfolio Segment ($ in millions) 19 $244 $206 $105 $127 $251 $260 $29 $29 $21 $21 $24 $30 $60 $30 $86 $83 $43 $58 $22 $34 $97 $105 $45 $33 $13 $24 $6 $6 $51 $46 $40 $42 $34 $33$16 $10 $9 $6 $4 $3 Non-Guaranteed Portion of SBA Guaranteed Portion of SBA Franchise and Equipment C&I CRE Residential and Other Consumer 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25
Criticized and Classified Loans ($ in millions) 20 Commercial Real Estate(1) Commercial(1)(2) Special Mention Substandard Accruing Substandard Non-accruing and Doubtful 12/31/20 12/31/21 12/31/2022 12/31/23 12/31/24 03/31/25 $— $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 12/31/20 12/31/21 12/31/2022 12/31/23 12/31/24 03/31/25 $— $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) 21 December 31, 2024 $138 $17 $47 $101 $340 $128 $3 $14 $176 $17 $47 $94$354 $107 $3 $15 Multifamily Hotel Industrial/ Warehouse Retail Office Construction & Land Other SBA March 31, 2025 Construction and land category includes $60 million of office exposure at 3/31/2025 $33 $19$8 $31 $2 Office Multifamily Hotel Construction and Land Other Non-performing CRE loans by Property Type at March 31, 2025
Asset Quality - Delinquencies ($ in millions) 22 Commercial(1) CRE 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25 $— $20 $40 $60 $80 $100 Residential(2) 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25 $— $20 $40 $60 $80 $100 30-59 Days PD 60-89 Days PD 90 Days+ PD 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 03/31/25 $— $20 $40 $60 $80 $100 1. Includes C&I, Pinnacle, franchise finance and equipment finance 2. Excludes government insured residential loans
Residential Portfolio Overview At March 31, 2025 23 Residential Loan Product Type FICO Distribution(1) Breakdown by LTV(1) 1. Excludes government insured residential loans. FICOs are refreshed routinely. LTVs are typically at origination Prior 33% 2021 42% 2022 16% 2023 4% 2024 4% 2025 1% >759 75% 720-759 14% <720 or NA 11% Breakdown by Vintage(1) 30 Yr Fixed 34% 15 & 20 Year Fixed 12% 10/1 ARM 12% 5/1 & 7/1 ARM 27% Formerly Covered 1% Govt Insured 14% High quality residential portfolio consists primarily of high FICO, low LTV, prime jumbo mortgages with de-minimis charge-offs since inception as well as government insured loans 60% or less 33% 61% - 70% 25% 71% - 80% 40% More than 80% 2%
Investment Portfolio 24
High Quality, Short-Duration Securities Portfolio ($ in millions) December 31, 2024 March 31, 2025 Portfolio Net Unrealized Gain/(Loss) Fair Value Net Unrealized Gain/(Loss) Fair Value US Government and Agency $ (99) $ 3,421 $ (74) $ 3,503 Private label RMBS and CMOs (253) 2,238 (224) 2,286 Private label CMBS (39) 1,784 (29) 1,770 Single family real estate-backed securities (8) 327 (6) 277 CLOs 2 1,133 2 1,058 Other (9) 198 (7) 197 $ (406) $ 9,101 $ (338) $ 9,091 Portfolio Composition US Government and Agency 39% Private label RMBS and CMOs 25% Private label CMBS 19% Single family real estate- backed securities 3% CLOs 12% Other 2% Rating Distribution GOV 39% AAA 52% AA 6% A 1% NR 2% • No expected credit losses on AFS securities • Unrealized losses just 4% of amortized cost • AFS portfolio duration of 1.78; approximately 70% of the portfolio floating rate 25
High Quality, Short-Duration Securities Portfolio At March 31, 2025 Strong credit enhancement levels - no SASB(1) exposure Private Label RMBS Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 2.9 95.5 17.9 2.1 AA 21.4 41.0 29.5 6.5 A 21.3 21.3 21.3 10.4 NR 19.8 20.0 19.9 13.6 Wtd. Avg. 4.6 89.4 18.6 2.9 Private Label CMBS Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 31.1 96.7 48.8 7.8 AA 35.1 75.9 48.1 7.5 A 29.4 60.5 41.2 10.0 Wtd. Avg. 31.5 92.9 48.4 7.8 CLOs Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 39.1 97.2 45.5 15.7 AA 30.9 34.3 32.3 15.4 A 39.3 39.3 39.3 24.7 Wtd. Avg. 38.1 88.1 43.6 15.8 AAA 91% AA 5% A 1% NR 3% AAA 84% AA 12% A 4% AAA 86% AA 13% A 1% 261. Single-asset, single-borrower