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0001504008false00015040082024-04-172024-04-170001504008exch:XNYS2024-04-172024-04-17


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 17, 2024 (April 17, 2024)

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:
ClassTrading SymbolName of Exchange on Which Registered
Common Stock, $0.01 Par ValueBKUNew 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 17, 2024, BankUnited, Inc. (the “Company”) reported its results for the quarter ended March 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
Number		 Description
 April 17, 2024
April 17, 2024
2



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 17, 2024BANKUNITED, INC.
 /s/ Leslie N. Lunak
 Name:Leslie N. Lunak
 Title:Chief Financial Officer


3




EXHIBIT INDEX
 
Exhibit
Number		 Description
 April 17, 2024
April 17, 2024




4
Document

Exhibit 99.1
BANKUNITED, INC. REPORTS FIRST QUARTER 2024 RESULTS

Miami Lakes, Fla. — April 17, 2024 — BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2024.
"This quarter was a good start to 2024, with continued improvement in the funding mix, a stable margin and strong credit performance" said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended March 31, 2024, the Company reported net income of $48.0 million, or $0.64 per diluted share, compared to $20.8 million, or $0.27 per diluted share, for the immediately preceding quarter ended December 31, 2023 and $52.9 million, or $0.70 per diluted share, for the quarter ended March 31, 2023.
Quarterly Highlights
•This quarter embodied strong execution on key strategic priorities:
◦The funding mix continued to improve as non-interest bearing demand deposits grew by $404 million for the quarter ended March 31, 2024. Non-brokered deposits grew by $644 million and total deposits grew by $489 million. Non-interest bearing demand deposits represented 27% of total deposits at March 31, 2024, up from 26% at December 31, 2023.
◦Wholesale funding, including FHLB advances and brokered deposits, declined by $1.4 billion for the quarter.
◦Compared to one year ago, we have grown total deposits by $1.3 billion and paid down FHLB advances by $3.6 billion.
◦Total loans declined by $407 million for the quarter ended March 31, 2024. Strategically, the residential loan portfolio declined by $152 million. The core C&I and commercial real estate portfolios declined by $226 million. This decline was related to expected seasonality as well as some notable unexpected paydowns and the decision to exit some non-relationship shared national credits.
◦The net interest margin, calculated on a tax-equivalent basis, was relatively stable at 2.57% compared to 2.60% for the immediately preceding quarter.
◦Credit is favorable. The annualized net charge-off ratio for the quarter ended March 31, 2024 was 0.02%. The NPA ratio at March 31, 2024 declined to 0.34%, including 0.11% related to the guaranteed portion of non-accrual SBA loans, from 0.37%, including 0.12% related to the guaranteed portion of non-accrual SBA loans at December 31, 2023.
◦Liquidity remains ample. Total same day available liquidity was $14.8 billion, the available liquidity to uninsured, uncollateralized deposits ratio was 156% and an estimated 65% of our deposits were insured or collateralized at March 31, 2024.
◦Our capital position is robust. At March 31, 2024, CET1 was 11.6% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was 10.3% at March 31, 2024. The ratio of tangible common equity to tangible assets increased to 7.3% at March 31, 2024.
•The average cost of total deposits increased by 0.22% to 3.18% for the quarter ended March 31, 2024 from 2.96% for the immediately preceding quarter. The cost of deposits is showing signs of stabilizing; on a spot basis, the cost of total deposits was 3.17% at March 31, 2024 compared to 3.18% at December 31, 2023.
•Our commercial real estate exposure is modest. Commercial real estate loans totaled 24% of loans at March 31, 2024, representing 166% of the Bank's total risk based capital. By comparison, based on call report data as of December 31, 2023 (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 225%.
1

•At March 31, 2024, the weighted average LTV of the CRE portfolio was 56.5%, the weighted average DSCR was 1.83, 57% of the portfolio was collateralized by properties located in Florida and 26% was collateralized by properties located in the New York tri-state area. For the office sub-segment, the weighted average LTV was 65.3%, the weighted average DSCR was 1.66, 59% was collateralized by properties in Florida, substantially all of which was suburban, and 24% was collateralized by properties located in the New York tri-state area.
•At March 31, 2024, the ratio of the ACL to loans was 0.90% compared to 0.82% at December 31, 2023. The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.42% at March 31, 2024 and the ACL to loans ratio for CRE office loans was 2.26%.
•Non-interest expense for the quarter ended March 31, 2024 included an additional $5.2 million related to the FDIC special assessment announced in the fourth quarter of 2023.
•The net unrealized pre-tax loss on the available for sale ("AFS") securities portfolio continued to improve, declining by $36 million for the quarter ended March 31, 2024, now representing 5% of amortized cost. The duration of our AFS securities portfolio remained short, at 1.85 as of March 31, 2024. Held to maturity securities were not significant.
•Book value and tangible book value per common share continued to grow, to $35.31 and $34.27, respectively, at March 31, 2024, compared to $34.66 and $33.62, respectively, at December 31, 2023, and $33.34 and $32.30, respectively, one year ago.
•The Company announced an increase of $0.02 per share in its common stock dividend for the quarter ended March 31, 2024, to $0.29 per common share, a 7% increase from the previous level of $0.27 per share.
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
March 31, 2024December 31, 2023
Core C&I and CRE sub-segments:
Non-owner occupied commercial real estate$5,309,126 21.9 %$5,323,241 21.6 %
Construction and land529,645 2.2 %495,992 2.0 %
Owner occupied commercial real estate1,916,651 7.9 %1,935,743 7.9 %
Commercial and industrial6,745,622 27.9 %6,971,981 28.3 %
14,501,044 59.9 %14,726,957 59.8 %
Franchise and equipment finance
347,103 1.4 %380,347 1.5 %
Pinnacle - municipal finance864,796 3.6 %884,690 3.6 %
Mortgage warehouse lending ("MWL")456,385 1.9 %432,663 1.8 %
Residential8,056,972 33.2 %8,209,027 33.3 %
$24,226,300 100.0 %$24,633,684 100.0 %
For the quarter ended March 31, 2024, total loans declined by $407 million. Consistent with our balance sheet strategy, residential loans declined by $152 million; franchise, equipment, and municipal finance, declined by an aggregate $53 million. The core C&I and CRE portfolios declined by $226 million; while production was in line with expectations, seasonality, some unexpected paydowns and exits of some shared national credits contributed to the decline.
2

Asset Quality and the ACL
The following table presents the ACL and related ACL coverage ratios at the dates indicated as well as net charge-off rates for the periods ended March 31, 2024 and December 31, 2023 (dollars in thousands):
ACLACL 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 %
March 31, 2024$217,556 0.90 %1.42 %187.92 %0.02 %
(1)    Annualized for the three months ended March 31, 2024.
(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, 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 March 31, 2024, the provision for credit losses, including both funded and unfunded loan commitments, was $15.3 million, compared to $19.3 million for the immediately preceding quarter ended December 31, 2023. The more significant factors impacting the provision for credit losses and increase in the ACL for the quarter ended March 31, 2024 were an increase in qualitative loss factors and risk rating migration, partially offset by an improved economic forecast.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
Three Months Ended
 March 31, 2024December 31, 2023March 31, 2023
Beginning balance$202,689 $196,063 $147,946 
Impact of adoption of new accounting pronouncement (ASU 2022-02)N/A
N/A
(1,794)
Balance after impact of adoption of ASU 2022-02
202,689 196,063 146,152 
Provision15,805 16,257 17,595 
Net charge-offs(938)(9,631)(4,955)
Ending balance$217,556 $202,689 $158,792 
NPAs remained low, totaling $118.9 million at March 31, 2024, down from $130.6 million at December 31, 2023. Non-performing loans totaled $115.8 million or 0.48% of total loans at March 31, 2024, compared to $127.0 million or 0.52% of total loans at December 31, 2023. Non-performing loans included $40.0 million and $41.8 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.16% and 0.17% of total loans at March 31, 2024 and December 31, 2023, respectively.
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
March 31, 2024December 31, 2023
CRE
Total Commercial
CRE
Total Commercial
Special mention$139,980 $357,800 $97,552 $319,905 
Substandard - accruing577,418 966,129 390,724 711,266 
Substandard - non-accruing12,258 83,511 13,727 86,903 
Doubtful— 13,822 — 19,035 
Total $729,656 $1,421,262 $502,003 $1,137,109 
The $255 million increase in the substandard accruing category for the quarter ended March 31, 2024 included $187 million of CRE, $115 million of which was office. All of these loans continue to perform. Factors contributing to risk rating migration in the office portfolio included rent abatement periods, delays in completing build-out of leased space and in some cases what we expect to be temporarily lower occupancy levels.
Net Interest Income
Net interest income for the quarter ended March 31, 2024 was $214.9 million, compared to $217.2 million for the immediately preceding quarter ended December 31, 2023. Interest income decreased by $1.7 million for the quarter ended March 31, 2024 compared to the immediately preceding quarter, while interest expense increased by $0.6 million.
3

The Company’s net interest margin, calculated on a tax-equivalent basis, decreased by 0.03% to 2.57% for the quarter ended March 31, 2024, from 2.60% for the immediately preceding quarter ended December 31, 2023. Factors impacting the net interest margin for the quarter ended March 31, 2024 were:
•The tax-equivalent yield on loans increased to 5.78% for the quarter ended March 31, 2024, from 5.69% for the quarter ended December 31, 2023. This increase reflects the origination of new loans at higher rates, paydowns of lower rate loans and balance sheet repositioning.
•The tax-equivalent yield on investment securities decreased to 5.59% for the quarter ended March 31, 2024, from 5.73% for the quarter ended December 31, 2023. The primary driver of this decrease was routine accounting adjustments recorded in the quarter ended December 31, 2023 related to prepayment speeds on certain securities; these adjustments positively impacted the yield for the quarter ended December 31, 2023.
•The average cost of interest bearing deposits increased to 4.21% for the quarter ended March 31, 2024 from 4.04% for the quarter ended December 31, 2023. An increase in municipal money market deposits late in the fourth quarter of 2023 and CD repricing were contributing factors.
•The average rate paid on FHLB advances decreased to 4.18% for the quarter ended March 31, 2024 from 4.58% for the quarter ended December 31, 2023, primarily due to repayment of higher rate advances.
Non-interest income and Non-interest expense
Non-interest income totaled $26.9 million for the quarter ended March 31, 2024, compared to $17.1 million for the quarter ended December 31, 2023. The quarter ended March 31, 2024 included a $2.7 million of residual gains on the disposition of operating lease equipment compared to a $6.5 million loss for the prior quarter.
Non-interest expense totaled $159.2 million for the quarter ended March 31, 2024, compared to $190.9 million for the immediately preceding quarter ended December 31, 2023. Non-interest expense for the quarter ended December 31, 2023 included $35.4 million related to an FDIC special assessment; the quarter ended March 31, 2024 included an additional $5.2 million related to this assessment.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Wednesday, April 17, 2024 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/BId4ce6e266b5a4aacba55f3d701af063a. 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 $35.1 billion at March 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.
4

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; llunak@bankunited.com
Source: BankUnited, Inc.
5

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share and per share data) 
March 31,
2024		December 31,
2023
ASSETS  
Cash and due from banks:  
Non-interest bearing$13,773 $14,945 
Interest bearing407,443 573,338 
Cash and cash equivalents 421,216 588,283 
Investment securities (including securities reported at fair value of $8,914,959 and $8,867,354)
8,924,959 8,877,354 
Non-marketable equity securities252,609 310,084 
Loans24,226,300 24,633,684 
Allowance for credit losses (217,556)(202,689)
Loans, net24,008,744 24,430,995 
Bank owned life insurance 295,970 318,459 
Operating lease equipment, net329,025 371,909 
Goodwill77,637 77,637 
Other assets795,494 786,886 
Total assets$35,105,654 $35,761,607 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Demand deposits:  
Non-interest bearing$7,239,604 $6,835,236 
Interest bearing3,549,141 3,403,539 
Savings and money market11,122,916 11,135,708 
Time5,115,703 5,163,995 
Total deposits27,027,364 26,538,478 
FHLB advances3,905,000 5,115,000 
Notes and other borrowings708,978 708,973 
Other liabilities823,920 821,235 
Total liabilities 32,465,262 33,183,686 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,772,706 and 74,372,505 shares issued and outstanding
748 744 
Paid-in capital286,169 283,642 
Retained earnings2,677,403 2,650,956 
Accumulated other comprehensive loss(323,928)(357,421)
Total stockholders' equity 2,640,392 2,577,921 
Total liabilities and stockholders' equity $35,105,654 $35,761,607 

6

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
Three Months Ended
 March 31,
2024		December 31, 2023March 31,
2023
Interest income:  
Loans$347,257 $346,255 $308,795 
Investment securities124,179 125,993 118,758 
Other10,038 10,957 12,863 
Total interest income 481,474 483,205 440,416 
Interest expense:
Deposits209,998 192,833 133,630 
Borrowings56,619 73,162 78,912 
Total interest expense 266,617 265,995 212,542 
Net interest income before provision for credit losses 214,857 217,210 227,874 
Provision for credit losses 15,285 19,253 19,788 
Net interest income after provision for credit losses 199,572 197,957 208,086 
Non-interest income:
Deposit service charges and fees5,499 5,386 5,545 
Gain (loss) on investment securities, net775 617 (12,549)
Lease financing11,440 3,723 13,109 
Other non-interest income9,163 7,366 10,430 
Total non-interest income 26,877 17,092 16,535 
Non-interest expense:
Employee compensation and benefits75,920 73,454 71,051 
Occupancy and equipment 10,569 10,610 10,802 
Deposit insurance expense13,530 43,453 7,907 
Professional fees 2,510 5,052 2,918 
Technology20,315 18,628 21,726 
Depreciation of operating lease equipment9,213 10,476 11,521 
Other non-interest expense27,183 29,190 26,855 
Total non-interest expense 159,240 190,863 152,780 
Income before income taxes67,209 24,186 71,841 
Provision for income taxes19,229 3,374 18,959 
Net income$47,980 $20,812 $52,882 
Earnings per common share, basic$0.64 $0.27 $0.71 
Earnings per common share, diluted$0.64 $0.27 $0.70 

7

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,
202420232023
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans$24,337,440 $350,441 5.78 %$24,416,013 $349,603 5.69 %$24,724,296 $312,125 5.10 %
Investment securities (3)
8,952,453 125,025 5.59 %8,850,397 126,870 5.73 %9,672,514 119,666 4.95 %
Other interest earning assets763,460 10,038 5.29 %801,833 10,957 5.42 %1,039,563 12,863 5.02 %
Total interest earning assets34,053,353 485,504 5.72 %34,068,243 487,430 5.70 %35,436,373 444,654 5.05 %
Allowance for credit losses(206,747)(198,984)(151,071)
Non-interest earning assets1,589,333 1,715,795 1,793,000 
Total assets$35,435,939 $35,585,054 $37,078,302 
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits$3,584,363 $33,507 3.76 %$3,433,216 $31,978 3.70 %$2,283,505 $10,545 1.87 %
Savings and money market deposits11,234,259 118,639 4.25 %10,287,945 104,188 4.02 %12,145,922 91,724 3.06 %
Time deposits5,231,178 57,852 4.45 %5,225,756 56,667 4.30 %4,526,480 31,361 2.81 %
Total interest bearing deposits20,049,800 209,998 4.21 %18,946,917 192,833 4.04 %18,955,907 133,630 2.86 %
Federal funds purchased— — — %— — — %143,580 1,611 4.49 %
FHLB advances4,570,220 47,496 4.18 %5,545,978 64,034 4.58 %6,465,000 68,039 4.27 %
Notes and other borrowings709,017 9,123 5.15 %711,073 9,128 5.13 %720,906 9,262 5.14 %
Total interest bearing liabilities25,329,037 266,617 4.23 %25,203,968 265,995 4.19 %26,285,393 212,542 3.28 %
Non-interest bearing demand deposits6,560,926 6,909,027 7,458,221 
Other non-interest bearing liabilities906,266 903,099 821,419 
Total liabilities32,796,229 33,016,094 34,565,033 
Stockholders' equity2,639,710 2,568,960 2,513,269 
Total liabilities and stockholders' equity$35,435,939 $35,585,054 $37,078,302 
Net interest income$218,887 $221,435 $232,112 
Interest rate spread1.49 %1.51 %1.77 %
Net interest margin2.57 %2.60 %2.62 %
(1)    On a tax-equivalent basis where applicable
(2)    Annualized
(3)    At fair value except for securities held to maturity














8


BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)
Three Months Ended
cMarch 31, 2024December 31, 2023March 31, 2023
Basic earnings per common share: 
Numerator:
Net income$47,980 $20,812 $52,882 
Distributed and undistributed earnings allocated to participating securities
(680)(930)(798)
Income allocated to common stockholders for basic earnings per common share$47,300 $19,882 $52,084 
Denominator:
Weighted average common shares outstanding74,509,107 74,384,185 74,755,002 
Less average unvested stock awards(1,127,838)(1,130,715)(1,193,881)
Weighted average shares for basic earnings per common share73,381,269 73,253,470 73,561,121 
Basic earnings per common share$0.64 $0.27 $0.71 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share$47,300 $19,882 $52,084 
Adjustment for earnings reallocated from participating securities
1 — 3 
Income used in calculating diluted earnings per common share$47,301 $19,882 $52,087 
Denominator:
Weighted average shares for basic earnings per common share73,381,269 73,253,470 73,561,121 
Dilutive effect of certain share-based awards255,824 203,123 447,581 
Weighted average shares for diluted earnings per common share
73,637,093 73,456,593 74,008,702 
Diluted earnings per common share$0.64 $0.27 $0.70 

9


BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 At or for the Three Months Ended
 March 31, 2024December 31, 2023March 31, 2023
Financial ratios (4)
  
Return on average assets0.54 %0.23 %0.58 %
Return on average stockholders’ equity7.3 %3.2 %8.5 %
Net interest margin (3)
2.57 %2.60 %2.62 %
Loans to deposits89.6 %92.8 %96.8 %
Tangible book value per common share$34.27 $33.62 $32.30 
 March 31, 2024December 31, 2023
Asset quality ratios  
Non-performing loans to total loans (1)(5)
0.48 %0.52 %
Non-performing assets to total assets (2)(5)
0.34 %0.37 %
Allowance for credit losses to total loans0.90 %0.82 %
Allowance for credit losses to non-performing loans (1)(5)
187.92 %159.54 %
Net charge-offs to average loans(4)
0.02 %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 month periods.
(5)    Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $40.0 million or 0.16% of total loans and 0.11% of total assets at March 31, 2024, and $41.8 million or 0.17% of total loans and 0.12% of total assets at December 31, 2023.

March 31, 2024December 31, 2023Required to be Considered Well Capitalized
BankUnited, Inc.BankUnited, N.A.BankUnited, Inc.BankUnited, N.A.
Capital ratios
Tier 1 leverage8.1 %9.3 %7.9 %9.1 %5.0 %
Common Equity Tier 1 ("CET1") risk-based capital11.6 %13.4 %11.4 %13.1 %6.5 %
Total risk-based capital13.7 %14.3 %13.4 %13.9 %10.0 %
Tangible Common Equity/Tangible Assets7.3 %N/A7.0 %N/AN/A
10

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, 2024December 31, 2023March 31, 2023
Total stockholders’ equity$2,640,392 $2,577,921 $2,481,394 
Less: goodwill and other intangible assets77,637 77,637 77,637 
Tangible stockholders’ equity$2,562,755 $2,500,284 $2,403,757 
Common shares issued and outstanding74,772,706 74,372,505 74,423,365 
Book value per common share$35.31 $34.66 $33.34 
Tangible book value per common share$34.27 $33.62 $32.30 
11
exhibit99203312024
April 17, 2024 Q1 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 Execution on Near-term Strategic Priorities 4 3 4 1 • Wholesale funding down $1.4 billion • NIDDA up $404 million; improved to 27% of deposits • Non-brokered deposits grew by $644 million; total deposits up $489 million • Paid down FHLB advances by $3.6 billion since Q1’2023 • Resi declined by $152 million • Core C&I and CRE declined by $226 million impacted by seasonality, unexpected paydowns and exits of shared national credits • Net interest margin relatively stable; as expected, decreased marginally to 2.57% from 2.60% • Same day available liquidity $14.8 billion • Available liquidity 156% of uninsured, uncollateralized deposits • CET 1 ratio of 11.6%; TCE/TA increased to 7.3% • AOCI improved by $33 million Manage credit • ACL/Loans increased to 0.90% • Annualized net charge-offs 0.02% • NPAs declined; NPA ratio down to 0.34% from 0.37% 5 Manage Expenses • Includes additional $5.2 million related to FDIC special assessment • Deducting the FDIC special assessment, non-interest expense down marginally from prior quarter 6

 
Topics of Current Interest Capital • CET1 ratio 11.6% ; TCE/TA 7.3% • AOCI improved $33 million quarter-over-quarter • Book value and tangible book value per share grew to $35.31 and $34.27 Deposits and Funding • Total deposits grew by $489 million • Non-brokered deposits grew by $644 million • Non-interest bearing DDA 27% of total deposits; up $404 million for the quarter • Wholesale funding down by $1.4 billion Asset Quality • Low NPA ratio of 0.34% at March 31; 0.23% excluding guaranteed portion of non-accrual SBA loans • Annualized net charge-off rate of 0.02% High Quality CRE Portfolio • Wtd average DSCR 1.83; wtd average LTV 56.5%; 57% Florida • CRE office wtd average DSCR 1.66; wtd average LTV 65.3%; 59% Florida • CRE office reserve 2.26% at March 31 • Substantially all CRE loans are performing • CRE to total loans 24% • CRE to total risk based capital 166% • CRE ACL is 6X historical lifetime loss rate 1. Tangible book value per share is a non-GAAP financial measure. See section entitled “Non-GAAP Financial Measures” on page 30 5 Net Interest Margin • Net interest margin 2.57% compared to 2.60% for prior quarter • Cost of deposits stabilizing; 3.17% at 3/31/24 compared to 3.18% at 12/31/23; average cost of deposits for Q1 of 3.18%

 
Highlights from First Quarter Earnings Change From ($ in millions, except per share data) Q1’24 Q4’23 Q1’23 Q4’23 Q1’23 Key Highlights Net Interest Income $215 $217 $228 $(2) $(13) Provision for Credit Losses $15 $19 $20 $(4) $(5) Total Non-interest Income $27 $17 $17 $10 $10 Total Non-interest Expense $159 $191 $153 $(32) $6 $5.2 million FDIC special assessment in Q1’24; $35.4 million Q4’23 Net Income $48 $21 $53 $27 $(5) EPS $0.64 $0.27 $0.70 $0.37 $(0.06) Period-end Core C&I and CRE loans $14,501 $14,727 $14,153 $(226) $348 Period-end Loans $24,226 $24,634 $24,893 $(407) $(667) Strategic runoff in residential and equipment/franchise lending Period-end Non-interest DDA $7,240 $6,835 $7,367 $404 $(127) Period-end Deposits $27,027 $26,538 $25,723 $489 $1,304 Loans to Deposits 89.6% 92.8% 96.8% (3.2)% (7.2)% CET1 11.6% 11.4% 10.8% 0.2% 0.8% Total Capital 13.7% 13.4% 12.6% 0.3% 1.1% Yield on Loans 5.78% 5.69% 5.10% 0.09% 0.68% Yield on Securities 5.59% 5.73% 4.95% (0.14)% 0.64% Cost of Deposits 3.18% 2.96% 2.05% 0.22% 1.13% Net Interest Margin 2.57% 2.60% 2.62% (0.03)% (0.05)% Non-performing Assets to Total Assets(1) 0.34% 0.37% 0.32% (0.03)% 0.02% Allowance for Credit Losses to Total Loans 0.90% 0.82% 0.64% 0.08% 0.26% Commercial Allowance for Credit Losses to Total Commercial Loans(3) 1.42% 1.29% 1.00% 0.13% 0.42% Net Charge-offs to Average Loans(2) 0.02% 0.09% 0.08% (0.07)% (0.06)% 1. Includes guaranteed portion of non-accrual SBA loans. 2. Annualized for the periods ended March 31, 2024 and 2023. 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. 6

 
Deposits 7

 
Deposit Trends ($ in millions) $6,820 $7,347 $4,807 $3,384 $4,268 $5,164 $5,116 $11,262 $10,622 $12,660 $13,369 $13,061 $11,136 $11,123 $1,771 $2,131 $3,020 $3,709 $2,142 $3,403 $3,548 $3,621 $4,295 $7,009 $8,976 $8,038 $6,835 $7,240 $23,474 $24,395 $27,496 $29,438 $27,509 $26,538 $27,027 Non-interest Demand Interest Demand Money Market / Savings Time 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 Quarterly Cost of Deposits 1.52% 1.48% 0.43% 0.19% 1.42% 2.96% 3.18% Non-interest bearing as a % of Total Deposits 15.4% 17.6% 25.5% 30.5% 29.2% 25.8% 26.8% 8 • 62% of deposits commercial or municipal • 65% of deposits insured or collateralized • Diverse deposit book by industry sector; largest sector title solutions at $3.1 billion

 
Cost of Funds Trend 9 1.42% 0.36% 0.16% 1.92% 3.18% 3.17% 1.75% 0.25% 0.25% 4.50% 5.50% 5.50% 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 03/31/24 (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 March 31, 2024 Total non-maturity deposits 1.11% 0.29% 0.14% 1.83% 2.87% 2.85% Total interest-bearing deposits 1.71% 0.48% 0.23% 2.66% 4.20% 4.29% Total deposits 1.42% 0.36% 0.16% 1.92% 3.18% 3.17% 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 March 31, 2024 ($ in millions) Loan Portfolio Over Time $5,661 $6,348 $8,368 $8,901 $8,209 $8,057 $7,493 $6,896 $5,702 $5,700 $5,819 $5,839 $6,718 $6,448 $6,735 $8,305 $8,907 $8,661 $768 $1,259 $1,092 $525 $433 $456 $2,515 $2,915 $1,868 $1,455 $1,266 $1,213$23,155 $23,866 $23,765 $24,886 $24,634 $24,226 Other (1) Mortgage Warehouse Lending C&I CRE Residential 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 1. Includes Pinnacle municipal finance, franchise and equipment finance, and PPP.

 
High Quality CRE Portfolio At March 31, 2024 ($ in millions) Property Type Balance % of Total CRE FL NY Tri State Other Wtd. Avg. DSCR Wtd. Avg. LTV Office $ 1,791 31 % 59 % 24 % 17 % 1.66 65.3 % Warehouse/Industrial 1,287 23 % 60 % 9 % 31 % 2.03 51.7 % Multifamily 840 14 % 48 % 52 % — % 1.89 48.1 % Retail 821 14 % 52 % 31 % 17 % 1.66 59.5 % Hotel 488 8 % 79 % 3 % 18 % 2.12 46.9 % Construction and Land 530 9 % 46 % 49 % 5 % NA NA Other 82 1 % 71 % 12 % 17 % 1.76 49.2 % $ 5,839 100 % 57 % 26 % 17 % 1.83 56.5 % 12 Negligible amount of non-performing CRE loans (other than non-accrual SBA guaranteed loans of $12 million) Florida NY Tri State Property Type Wtd. Avg. DSCR Wtd. Avg. LTV Wtd. Avg. DSCR Wtd. Avg. LTV Office 1.68 64.5 % 1.61 61.6 % Warehouse/Industrial 2.13 50.0 % 1.83 37.2 % Multifamily 2.46 45.3 % 1.35 50.8 % Retail 1.82 58.6 % 1.38 61.0 % Hotel 2.22 44.7 % 2.37 21.4 % Other 1.94 47.3 % 1.22 67.3 % 1.99 54.7 % 1.50 55.4 %

 
Manageable CRE Maturity Risk At March 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 as a % of Total Portfolio Office $ 342 19 % $ 121 7 % Warehouse/Industrial 88 7 % 77 6 % Multifamily 106 13 % 26 3 % Retail 106 13 % 66 8 % Hotel 42 9 % 17 4 % Construction and Land 205 39 % 4 1 % Other 12 15 % 12 15 % $ 901 15 % $ 323 6 % 13 Just 6% of total CRE portfolio fixed and maturing in the next 12 months Property Type 2024 2025 2026 2027 2028 Thereafter Total Office $ 285 $ 399 $ 424 $ 224 $ 145 $ 314 $ 1,791 Warehouse/Industrial 77 165 384 294 145 222 1,287 Multifamily 60 125 164 159 108 224 840 Retail 95 149 231 73 186 87 821 Hotel 42 44 216 31 56 99 488 Construction and Land 183 149 82 43 — 73 530 Other 13 7 27 10 1 24 82 $ 755 $ 1,038 $ 1,528 $ 834 $ 641 $ 1,043 $ 5,839 Maturity Distribution of CRE Loans

 
CRE Peer Benchmarking 14 35% 35% 24% Peer Median (1) Peer Mean (1) BankUnited, N.A —% 5% 10% 15% 20% 25% 30% 35% 40% 225% 216% 166% —% 50% 100% 150% 200% 250% 1. BKU information as of March 31, 2024 2. CRE peer median information based on December 31, 2023 Call Report data (most recent date available) for banks with total assets between $10 billion and $100 billion CRE / Total Loans CRE / Total Risk Based Capital

 
CRE Office Portfolio - Additional Information At March 31, 2024 15 • 17% or $309 million of the total office portfolio is medical office • Rent rollover in next 12 months approximately 10% of the total office portfolio; 11% for FL and 6% in NY Tri State • Manhattan portfolio has approximately 96% occupancy and rent rollover in the next 12 months of 4% • Substantially all of the Florida portfolio is suburban 43% 20% 20% 12% 4% 1% Manhattan NY Tri-State Other Long Island Queens Brooklyn Bronx 28% 22%21% 9% 10% 10% 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 March 31, 2024 ($ in millions) Industry Balance(1) % of Portfolio Finance and Insurance $ 1,424 16.4 % Manufacturing 849 9.8 % Educational Services 743 8.6 % Utilities 677 7.8 % Wholesale Trade 663 7.6 % Health Care and Social Assistance 631 7.3 % Information 618 7.1 % Real Estate and Rental and Leasing 466 5.4 % Construction 433 5.0 % Transportation and Warehousing 427 4.9 % Retail Trade 335 3.9 % Professional, Scientific, and Technical Services 253 2.9 % Other Services (except Public Administration) 250 2.9 % Public Administration 245 2.8 % Arts, Entertainment, and Recreation 226 2.6 % Administrative and Support and Waste Management 197 2.3 % Accommodation and Food Services 158 1.8 % Other 67 0.9 % $ 8,662 100.0 % 161. Includes $1.9 billion of owner-occupied real estate Geographic Distribution Florida 35% New York Tri-State 33% Other 32%

 
$202.7 $6.4 $(8.6) $(1.0) $(3.4) $21.5 $217.6 Drivers of Change in the ACL - Current Quarter ($ in millions) Risk Rating Migration and Specific Reserves Economic Forecast Net Charge- Offs ACL 03/31/24 ACL 12/31/23 0.90%0.82%% of Total Loans 17 Change in Qualitative Overlay Portfolio and Other • Largest component related to office CRE • Current market adjustment • Scenario weighting • Changes to forward path of forecast • New loans net of pay- downs • Portfolio and Assumption changes

 
Allocation of the ACL ($ in millions) December 31, 2023 March 31, 2024 Balance % of Loans Balance % of Loans Commerical: Commercial real estate $ 41.3 0.71 % $ 61.1 1.05 % Commercial and industrial 142.4 1.60 % 140.0 1.62 % Franchise and equipment finance 10.9 2.85 % 9.4 2.71 % Total commercial 194.6 1.29 % 210.5 1.42 % Pinnacle - municipal finance 0.2 0.03 % 0.2 0.03 % Residential and mortgage warehouse lending 7.8 0.09 % 6.9 0.08 % Allowance for credit losses $ 202.7 0.82 % $ 217.6 0.90 % Asset Quality Ratios December 31, 2023 March 31, 2024 Non-performing loans to total loans(1) 0.52 % 0.48 % Non-performing assets to total assets(1) 0.37 % 0.34 % Allowance for credit losses to non-performing loans(1) 159.54 % 187.92 % Net charge-offs to average loans(2) 0.09 % 0.02 % 18 1. Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $40.0 million and $41.8 million or 0.16% and 0.17% of total loans and 0.11% and 0.12% of total assets at March 31, 2024 and December 31, 2023, respectively. 2. Annualized for the period ended March 31, 2024. Office Portfolio ACL: 2.26% at March 31, 2024, compared to 1.18% at December 31, 2023.

 
Asset Quality Metrics 19 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% 0.48% 0.68% 0.80% 0.68% 0.26% 0.35% 0.32% 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 03/31/24 —% 0.25% 0.50% 0.75% 1.00% 1.25% 0.63% 0.71% 0.58% 0.29% 0.37% 0.34% 0.49% 0.56% 0.45% 0.18% 0.25% 0.23% 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 03/31/24 —% 0.25% 0.50% 0.75% 1.00% 1.25% 0.05% 0.26% 0.29% 0.22% 0.09% 0.02% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 —% 0.20% 0.40% 0.60% 1. Annualized for the period ended March 31, 2024.

 
Non-Performing Loans by Portfolio Segment ($ in millions) 20 $205 $244 $206 $105 $127 $116 $19 $29 $29 $21 $21 $18 $24 $60 $30 $65 $43 $58 $22 $34 $30 $35 $45 $33 $13 $24 $23 $46 $51 $46 $40 $42 $40 $16 $16 $10 $9 $6 $5 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 03/31/24 NPLs Declined This Quarter - Remain Below Pre-Pandemic Levels

 
Criticized and Classified Loans ($ in millions) 21 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 03/31/24 $— $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 03/31/24 $— $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 1. Excludes SBA 2. Includes Pinnacle, franchise and equipment finance, and MWL

 
Criticized and Classified CRE Loans by Property Type ($ in millions) 22 March 31, 2024 $123 $55 $96 $292 $144 $3 $17 Multifamily Hotel Retail Office Construction & Land Other SBA $116 $55 $89 $146 $77 $3 $16 December 31, 2023

 
Asset Quality - Delinquencies ($ in millions) 23 Commercial(1) CRE 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 $— $20 $40 $60 $80 $100 Residential(2) 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 03/31/24 $— $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 03/31/24 $— $20 $40 $60 $80 $100 1. Includes Pinnacle, franchise finance and equipment finance 2. Excludes government insured residential loans

 
Residential Portfolio Overview At March 31, 2024 24 Residential Loan Product Type FICO Distribution(1) Breakdown by LTV 1. Excludes government insured residential loans. FICOs are refreshed routinely. LTVs are typically based on valuation at origination Prior 22% 2020 13% 2021 43% 2022 16% 2023 5% 2024 1% >759 76% 720-759 14% <720 or NA 10% Breakdown by Vintage(1) 60% or less 34% 61% - 70% 25% 71% - 80% 40% More than 80% 1% 30 Yr Fixed 32% 15 & 20 Year Fixed 13% 10/1 ARM 12% 5/1 & 7/1 ARM 27% Formerly Covered 1% Govt Insured 15% 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

 
Investment Portfolio 25

 
High Quality, Short-Duration Securities Portfolio ($ in millions) December 31, 2022 December 31, 2023 March 31, 2024 Portfolio Net Unrealized Loss Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss Fair Value US Government and Agency $ (146) $ 2,780 $ (115) $ 2,656 $ (110) $ 2,884 Private label RMBS and CMOs (334) 2,531 (301) 2,296 (294) 2,250 Private label CMBS (121) 2,524 (84) 2,199 (69) 2,122 Single family real estate-backed securities (32) 470 (18) 366 (15) 341 CLOs (30) 1,136 (10) 1,113 (1) 1,077 Other (11) 213 (7) 205 (9) 207 $ (674) $ 9,654 $ (535) $ 8,835 $ (498) $ 8,881 Portfolio Composition US Government and Agency 33% Private label RMBS and CMOs 25% Private label CMBS 24% Single family real estate- backed securities 4% CLOs 12% Other 2% Rating Distribution GOV 32% AAA 58% AA 7% A 2% NR 1% • Unrealized losses continue to decline • No expected credit losses on AFS securities • AFS portfolio duration of 1.85; approximately 69% of the portfolio floating rate • HTM securities total $10 million 26

 
High Quality, Short-Duration Securities Portfolio At March 31, 2024 Strong credit enhancement levels Private Label RMBS Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 1.2 92.2 17.8 2.2 AA 20.4 34.5 25.3 5.3 A 28.5 30.5 29.2 5.4 Wtd. Avg. 2.4 88.9 18.3 2.4 Private Label CMBS Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 30.3 97.9 44.8 6.1 AA 30.5 74.3 37.8 6.7 A 25.1 51.6 38.0 8.6 Wtd. Avg. 30.1 93.7 43.8 6.3 CLOs Subordination Wtd. Avg. Stress Scenario LossRating Min Max Avg. AAA 41.3 89.3 47.7 10.9 AA 30.8 42.8 35.8 8.4 A 34.0 34.3 34.1 9.7 Wtd. Avg. 39.6 81.0 45.6 10.5 AAA 94% AA 4% A 2% AAA 85% AA 11% A 4% AAA 83% AA 13% A 4% 27

 
Appendix - Additional Information 28

 
Ample Liquidity Coverage of Uninsured Deposits ($ in millions) 29 Insured Deposits Total Deposits $ 27,027 Estimated Uninsured Deposits $ 12,777 Less: Collateralized deposits (3,048) Less: Affiliate deposits (286) Adjusted Uninsured Deposits $ 9,443 Estimated Insured and Collateralized Deposits $ 17,584 Insured and Collateralized Deposits to Total Deposits 65 % Available Liquidity(1) $ 14,766 Available Liquidity to Uninsured, Uncollateralized Deposits Ratio 156 % 1. Cash + Capacity at FHLB + Capacity at FRB + Unencumbered securities At March 31, 2024

 
Non-GAAP Financial Measures 30 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 March 31, 2024 (in thousands except share and per share data): March 31, 2024 Total stockholders’ equity (GAAP) $ 2,640,392 Less: goodwill 77,637 Tangible stockholders’ equity (non-GAAP) $ 2,562,755 Common shares issued and outstanding 74,772,706 Book value per common share (GAAP) $ 35.31 Tangible book value per common share (non-GAAP) $ 34.27