BankUnited (BKU) 25 Jul 232023 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the BankUnited Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

like Susan the Greenfield. now our over would today, speaker I to conference hand to And Please ahead. go

Thank you, results Latanya. joining us Good morning and on second thank our quarter XXXX conference today call. you for

CEO; Chief this morning Officer; Singh, President Chief On the Leslie Cornish, are our our call Lunak, Tom Officer. our Raj Chairman, and Operating and Financial

events among other on financial things, the around and statements that forward-looking made performance of we current reflect historical Act this forward-looking future statements contain start, call company based this and are may Reform views company's performance. current I'd Before its company's Litigation subsidiaries estimates the the like the the Any call meaning with that and of of Securities during to XXXX remind everyone to Private within plans, the respect expectations.

The forward-looking inclusion uncertainties are plans, the a forward-looking achieved. be representation the regarded and or Such the not company adverse expectations as company's should future the risks assumptions, company and control, relating by contemplated company's to financial results, by external various that be estimates of by information will subject this statements financial as growth to outside liquidity, business those financial prospects, circumstances services the including, industry. operations, condition, strategy as impacted cashing the such and without events limitation, and including direct

Form on December XX-K the which factors on are at and these subsequent XX, SEC's for XX-Q quarterly These future differ not review not factors The report company's statements. materially information, to otherwise. on the available statements, or the indicated Information forward-looking any by or actual as annual be number any results whether can could exhaustive. company on the www.sec.gov. result of ended update current from cause to as undertake new developments found or construed Form website, any does X-K, publicly important report should XXXX, year in A Form a of obligation forward-looking those report be factors

I'd call over to Raj. that, to With like turn the

last you, in you, earnings us. you was morning, doing we thinking everyone. room we just Tom release, for to a spoke runs last Susan. what when before dry the this and of ago, huddled release earnings Leslie Welcome, I myself, joining and our day it be were Thank and Thank the like. XX would days of

I data think we at that which questions never in the that our have we we those day. we us we fingertips prepared with did time. all we've we could Every sure, two available question before, that to we ask answer dry at done answers. runs, possibly to And kinds so of did that be were all your wanted but could

the I we where Tom outing Compare big doesn't but in -- that did had for she were leave yesterday, office, We Leslie to our a difference. back a XX-days more and that's golf golf. like top a But day. make great at lines can

So back we and entertain we're all normal. gone sort to has our happy were life to of able clients

meeting things now, and next I I team a top XX the for room this The sort defined do day next the in last a and of the The in short-term we tense the company, still we're the writing very we quarter, is half okay, environment. as whiteboard, conversation. we a maybe do maybe was that standing day two day, that that the may company, metrics-driven and in tactically, environment senior things company. improve we had in -- this passed, a will said, mind, We talk whiteboarding actually with was let's or in of the asked we actually a it started came have of And huddled to anything it or worst day, you, a XX, long-term we that We rarely people hasn't, short-term what session -- April. call together but But day. on like, the conference things leadership short-term earnings which again, that And we anyone's it the that late is strategy. are a in always listen, the reminding quarter we're and something did which could session. about strategy said,

Let's improve our loan-to-deposit ratio.

total our improve Let's deposits.

FHLB Let's pay borrowings. down

expense Let’s start an management program.

coverage. liquidity Let's improve

okay, a Let's bunch forth. so on down of improve whole our things, and somebody uninsured sure deposit and remains a put course, all pristine. credit we’ve And levels said, wrote and let's things And make a of we okay, so doing that whiteboard anyway. time said, things period the stared of on all of we we and and for that be time these – are some of collectively, for it at should

it's We exactly paid that here reporting what that ourselves. We our that second all our securities started are executing our for and We And really liquidity, a we grew that. improved actually couple the pretty very a down that numbers, book, capital. matter even I'm hit really laid on don't achieve mortgage of of we've a months from can And strategic, actionable think call down improved those happy I we We our book. we We we quarters. tactical. improved couple out short-term, things of months Standing much made list, deposit metrics of ran that deposits. three and loan FHLB. sort it's quarter have our all what's ratio. a most in But of became it, laundry or been

And margin. about talk I'll

we talk down this more minutes. We'll as a in quarter, that While little detail margin came few well. that in a about stabilized

period comment of the viewed really quarter, could a be quarter time line. So Last made first that I'm sort as pretty of, two different, happy very we a in on I had time. where short are

to XX, X everything to March. XX it then everything So end from March was March January from and of the

of July, back continued and demarcation, things quarter. of to much This second-half that has feel clear I the the feel very quarter, to going a were felt fairly different from do into the the normal. do there the try and same if of I but And wasn't first-half quarter that

about happy I'm So that.

the about react things we we don't comments control, Quick that but environment, to.

So economy economy, the first resilient. very and foremost, the is

on tired saying we over of any this but every We like see anywhere over and how I'm kind the showing of don't afraid our geographies. that's all of up of we're see it. in So that stresses call,

strong So and Florida resilient, the and economy twice as is is as strong average. national the

very of inflation at rate If economy that so means and GDP, you look country. the Florida's in also Florida much unemployment But than the on, is higher unfortunately, resilient. is rest

CPI rate is it data very feel environment, But is, PPI in. much are the the on the Street does like we it think inflection rates, what and like where to -- the policy. that's pricing I feel very On close raise at they is will Fed does point Fed given

tremendously So the inverted that's is from speaking, chaos months reasons good. curve while ago, it has the challenging it generally And a the improved of being still the challenging of environment three banking environment, very in the for concerns an still not being intense. still deposits future. the it's here the down for -- And slowing that and about expectation and economy is eventually competition now. faltering, It's out some still and or

So a came would share. will a run Net $X.XX -- over these with I'll do quickly dive, at of do deeper income we numbers, the Leslie some quickly. through that, and go and million Tom go $XX let or me

by top I Deposits consensus that's $XXX couple from right days of I on million. a what checked think grew of ago.

a in big that $XX went by but last million, big seen is of we've down, course over DDA improvement over the declines many which NIDDA noninterest quarters. only the

So came in was of DDA deposits relatively ratio March. XX.X%, non-interest total to our to stable at in what it

at was time. it XX.X% think that I

know, largest in but of portion gotten million, Loans declined the which of the mostly last $XXX the by couple have we was as residential, heavy quarters, you after that pandemics. residential

taking that us. by decision down deliberate So very was a

also, that. had also million that needed So larger run was came down. what down total to portfolio by be. million. loans $XXX, resi we've $XXX Securities declined by than but It we $XXX of That's

February, here. from at February January for to million. balance $XXX point But the coming the On advances overall was from $XXX to up we the $XXX finer decline last ended off billion. quarter, want a million million declining quarter. of quarter. did our the at I pay FHLB Last and to March, tune margin was That's we the our other to sheet, a looked was we side down, when Margin it from margin $X.X for make of quarter

and entered This at this ended quarter we quarter, million quarter $XXX we at this $XXX million.

coming better, the was relative last this it down fast, So and this it because was quarter lot quarter, while hard stable. a where -- to it felt was lower,

to Cost I'm to happy $XXX million $XXX that So deposits compared was quarter. last that. about million, of increased

the increase was XX basis this quarter basis I quarter XX think points. was Last points. it more, was

repricing. a deposits least improvement velocity the So in slight which with are at

is everything the to on NPAs talk were XX credit much front And points. there isn't basis because quickly, fairly stable. really about,

last line loans points, that's then guaranteed basis I SBA X Charge-offs quarter. X basis basis were quarter. with higher last If points were you the in much points, exclude than they think XX very

compared to year, year. fact, year, much basis were we think averaging In last points, last last than so better XX I

on credit CRE. is office So on isn't focused side, story. Obviously, of the much there a everyone

quarter a low, peers portfolio. $XX as also, billion. you banks we've CRE more last And gave lot peers. defining total between What fairly sort levels office you we quarter, given did are I'm information. Our our even our information to compared of on of we billion And $XXX this and

not possible on see this time any if which in a We This way is causing of there's to kind any something that us is of spending are trouble. lot looking every this book -- heartburn.

pristine. hard this part portfolio. a City in the is pull exposure really Florida of we exposure to I New portfolio holes very is large a So it in mean, is have this is whatever where good York and

So now, on. we're this losing what as is sleep of right not

a not always we just said in involve also times like call, a capital. like this our -- the better. at improved the this, capital needed is more we capital time beginning lastly, I position So comment to but of because to, about

ratio our XX basis tangible improved, CETX Our points. common improved equity by

value so increase overall, on. a tangible and So book

a basically set plan we've -- the would for overall, ourselves. back to in and I already down that's lot I last collective on we're doing And thing. that our months, good pressures and out three the is say a So blood long-term that executing

on and to more hope come and in XX-days we've you like made I can it So -- talk front. that back stays this, the about progress we and

quickly turn over will I Tom, numbers. to detailed more a it who little But will go

Raj. you, Great. Thank

for time million up was deposits mentioned, were by So $XXX interest-bearing the $XX for million, aggregate, $XX $XXX up quarter. first, were on million. again, down the Raj as down deposits NIDDA, quarter were million, deposits, deposits non-maturity, in while

tax kind book collections in expected, It's for and happen as quarter seasonal we municipal the that biggest, government part the the a and the impact portfolio. in go large $XXX up think million whatnot. go decline on portfolio will have we come and I and that kind which of a deposits of, was was quarter, that -- of down

terms In a of through and platform business, into our new management operations of solid business very sight line treasury have new coming we our systems.

and have -- we in operating have running treasury of onboarding. very are various quarters is in very, in strong. We from always products bilateral it realize to the track -- over overall, perspective book that and pipeline different, especially about deposits billion through timing the $X.X stages some that our type we deposit next deposits looks relationships But market couple with relationships a expect middle

to good industry we and $X.X to on Loan-to-deposit grows would the per XX, the accounts quarter the bring slide There largest XXs XXX deposits to is business down This in of ratio deposits and of other time. and very Title and deposit as into vertical we over billion low like eight accounts ended no in it XX. XX%, XX. of by about billion at XX operating It's at as improve June accounts. discussed that. quarter, the compared XX June predominantly $X XX% with As verticals continue March is our deck, and with over that feel to of total Solutions over are

So on loan portfolio. more little a detail the

mentioned, I We CRE. banking, business volatility numbers, we As period of, portfolio. And banking, Raj of, the as down been these then have the we a sort which time. the residential said, call, some million kind for I'll and banking has as national commercial those go overall portfolio, view talk and have $XXX this that down we trending core of Raj what have the are BFG of corporate other of businesses as And and trending would was for small portfolio more some down, kind through about quarter. --

$XX Franchise comments of next equipment million. down The C&I into my was the will continued over down to in of we versus up see and So quarters. Pinnacle, to and some I'll growth flattish areas the of likely be core couple seasonally million break down next just finance we again, continue likely edge finance million; $XX that CRE was happen couple quarters. expect to will expect quarter. up we fairly over Pinnacle where portfolio $XX that other for to sector downward, go the their over time.

XXX are I in, demand of and of and XXX attractive that across most north over Pipelines XXX. new range. on X.X% would in seeing in very very, the the seeing market segments about X% of many Overall, the in. in quarter good most to for both in is most the segments SOFR was the and production pipeline core the we're And of next CRE. the about we're the two plus we're the we're that strong pricing in Average areas geographies say the rate remain portfolio quarters. things good things is C&I that for for

non-relationship about $XX quarter. shared strategically national Consistent of national we million strategy -- with of our shared $XXX exited deemphasizing have credits million credits business, credit of last

did to more the shared will of time kind we business that continue some national at of couple we doing some we pandemic it business shifting during -- We business. and opportunistically more and look of to credit period into the shift exposure deposit-oriented relationship that had try quarters when now as over next

CRE take about portfolio. speak a the minutes to I'll So few

As very attractive Raj deck through interest there's loan feel comfortable of in we very book, said, gives XX of I the about portfolio a CRE on some is disclosure it's XX% is LTVs, service positioned, It's level. in Overall, lot Raj which overall said, quality, the additional well -- at low that of XX coverage the debt this. high slides XX% Florida. know ratios, high-quality, your as

I temperature, I said, don't -- tour finished the a too, Florida. just up Raj tell of As that's sizzling from extremely this very in to ranges offices continue And mean upon actually. you, in different different month, the demographics de-sizzling, Florida can kind, I be of strong markets. good depending

But markets see in net are range. you We strong. tremendous of that new terms Lauderdale market terms extremely publication Orlando, whether market in to in movement and unemployment market every of on in what's read you're going Beach, Florida in of in is suburban in markets most the absorption. day the Orlando, Tampa the about new-to-market Palm into rates mid-X% every Ford the in in Miami,

in Florida than seen you've So anywhere dramatically better else. economic metrics really

portfolio of June X%, XX-months XX, fixed about includes the is swap portfolio rate, the DSCR XX-months, LTV in At weighted About weighted the XX% XX% matures the average was which fixed which borrower. and X.XX. to and average loans, next in was matures of are the both the next CRE and

everybody's office. in favorite topic, So

about As portfolio. loan, office Raj said, at we our We feel quarter. every good look every really

at LTV billion, average XX additional June breakdowns the your level high just XX. very analytics weighted entire in X.X The a office running have billion. is on deck portfolio, there's was through XX%, average than We less $X.X of which weighted was supplemental DSCR of $X.XX about portfolio the and

suburban. as on office is XX. entire the the be we very performing. there's -- in rated in nonperforming XX% Substantially, $XXX,XXX that York in all the Tristate portfolio, of was is the all markets as across pass portfolio XX% all Florida exposure breakdowns office the demand, major of diversified in the as Substantially, was It's the classified Florida, to In and where and in the demographics, had New continues mentioned, package. Florida. of loans I June portfolio Florida portfolios favorable we're the and well

and well They're I sponsors properties. New Manhattan. basis. all center $XXX of these long-term the business sponsors, low they're own loans point to respect not obviously the so as all have of performing And all and York for attention. borough kind in to on call, of specifically, over they're or to million have generally that and mentioned generations very all last spread properties a have fund-related where portfolio, City York New that's They're Manhattan, in the with And we

X% Manhattan our rates occupancy rollover. the and XX% in In properties, XX-month has portfolio is lease a

portfolio the as feel feel possibly So as office that about a could we about good is we portfolio. overall about

in almost And I As I every we've in single stepped last couple of substantially familiar level over book say with can analytics the quarters. up we portfolio. the are loan our the said, intimately of

So with Leslie. turn that, to I'll it over

bit a Thanks, get detail little the into Tom. some numbers. more I'll about of

Raj As said, NIM Raj I'll reiterate said, $XXX was quarter, May. June. $XXX the XX points. stable this basis the so that million It's same been has the quarter was compared NIM the down And for million, the month-to-month. as to same April what was quarter last

happy very that So to stability. we're see

due mainly saw million, is that March. deposits average shift NIM held saw by considerably and quarter. a down advances the FHLB down X.XX together, all basis up and for that impact the about end. taken We average you FHLB X up on that $XXX the of in of we come And reflects points events And for of X of average funding. of and levels to decline all that just come estimate Cash were accounted all decline The on average the in about mix quarter and $XXX stabilized NIM. million by in -- up we about basis deposits had

towards million deposits up Cost compared the quarter. slowed XX quarter, increase of we XX rate quarter. quarter. last of in to basis again, points was And improvement some the from an end was in this total the costs Cost to XX And $XXX increase saw this $XXX basis points of up deposit basis of stability million. deposits of points

happy were So see we to that.

balance we funding had advances of of to to additional million million, put $XXX from average March. in cost The $XXX increased the on wholesale sheet the FHLB reflective again,

the the would I we in quarter. stability NIM during forward, say Looking saw

stability. or deposit see in near-term best in and the assumptions difficult very stability environment Obviously, we estimate but the there making that deposits our is we'll this will about behavior pin are estimate best continue we're Our that in that down, to to see is NIM.

March our quarter XX, Few liquidity XX% the last up so billion, comments from are trends XXX% up XX% liquidity available March About at at ratio on from deposits positive to at was at $X.X insured XX of June available uninsured June and to billion XX, was up June XX% there. or at Same-day liquidity. XX, end. all $XX.X collateralized XX from the of deposits at

and losses points million from credit this loans the points. XX basis to XX of to was $XX.X for provision increased The quarter ACL basis ratio

just was Moody's than it weight little by to really recognize a also and still provision in forecast bit quarter's little the This prior in economic less some our modeling just impacted a there scenario the risk coming. on placed favorable of quarter, that baseline the being we was downside a recession greater is

shift had the this of the quarter. the some quantitative qualitative We from to portion reserve

of You'll see in as some that in the the downside that now qualitatively. our slide capturing are with we scenario, modeling weighting have previously been deck of the economic capturing uncertainty we

Reserve points office add at out just there, potential I about echo and the XX. on that pre-office in was but said, March quarter, basis the if and really June very up of have that any, that's XX in good did to uncertainty to We loss something view portfolio. what points from this Tom content, reserve that feel Raj at XX both qualitative we basis quality XX

severely million the CCAR aggregate In scenario. quarter that, of results I is CRE at And or that for based severely the I adverse. on deck loan would you the also again, and CRE projected CCAR our office. CCAR guys. remind stress for that, scenario, portfolio severely on were in slide That's the X.X% $XX a thought lifetime adverse X.X%. in expected We've total to be you, X.X% the adverse this added to interesting some losses testing

office recessionary the In projected were or only for SX million. X.X% $XX Moody's losses scenario,

under a of even So to that's severe that's perform portfolio a hypothetical stress. projected extraordinarily well period

be The compensation normal the on in the losses fluctuations category, also preferred primarily, $XX.X that about the Fluctuation $X.X saw there didn't the expense of we that think recur in prior in payroll We expense. we the probably second-half taxes And of think last saw seasonal in down on took in was and investments noninterest recognized benefits. terms equity And and will well. non-interest quarter not -- in in some first-half, income, benefits current we guidance flat to we quarter. that did terms we compared to operational losses million probably prior million the recur quarter the to quarter. of due as expenses, biggest total non-interest driver

Raj So that for add? with that, comments he any wants I will turn it to to closing over

No, I we should straight Q&A. to think go

will [Operator Gailey from KBW. And of Certainly. Brady come question Instructions] first our

Your line is open.

morning, Good thanks. Hey, guys.

morning. Good

balance terminal steady. wanted your to heard expect I with Fed rate, But start with margin. near-term just BankUnited, I costs once stable. to you guidance the about So think the would be margin hits I the of the deposit how the sheet are

higher. You'll some going re-pricings still have loan

So is term, in could there NIM see scenario that the medium maybe expansion? a you

decline the NIM we could scenario. Yes. Brady, on and gave there's stable deposit deposit is slight where a a see in the scenario depends on base. a near-term The even flat all It NIDDA of guidance stability that NIM expansion. in predicated I

So we there we're think NIDDA all can be, funding upside, able we more what successful the that are if successful growing if on or to than some that's as we're successful but side, than is more keeping in we deposits Brady. be, potential stable, on think dependent and do or we'll as we

then loan half Okay. it? that pretty been year. of loan Got about just of has the should as not flat back the Is much in growth what the And of for it. we the for well, year first-half growth think

-- would perspective, see we book. to growth the I Yes. C&I growth in core from expect the

see growth the in CRE We expect book. to

be be will that flat. Pinnacle out of we of shifted and resi to expect fairly BFG, Some

core better their part. the part of book will that of yielding a is it So be kind

will growing grew of slightly the the in the year. first-half of year, think for second-half be I the

we in expect growth in assets but second-half yield see, exiting will loan other a year, doing the assets, but of offset be accelerated by obviously, see we'll to pickup that. that the think that yielding are I lower

buyback. to like for finally the on And half know repurchase re-purchaser, thoughts second doesn't in updated just headed quarter. the stock maybe back stock had look I historically, right. guys buyback me, any just you share a then this the of year? you been It big the All on

stopped buyback in back our We March.

I authorization, not stock. a the may in buying bit but little have think back left we're we

course. will Board ordinary we with We the discuss our as do in

Board gone so. in I some volatile And month the a is we've through or meeting think pretty times.

think I to at in the hold. was right some So it point future, the to Board but decide right decision now. the will reengage, And not

Okay. Alright, guys. great. Thanks,

our [Operator Jared question next of Instructions] come Shaw will from And Wells Fargo.

Your line is open.

Good morning, Jared.

Hi, Jared. good Braziler in morning. Timur This is filling for

Okay.

Do you hear me?

Yes, yes.

Sorry you stress starting comfort the more more maybe about know generally, increase coming of the real about some mentions. special CRE end credit, that. just the on talking what about if seeing Maybe in it's the book? in could not C&I areas you And that your commercial portfolio. out up talked estate are And I just the book.

done the say, are. deep all, obviously credits correlated would mention was what there. anything a that of the know those correlated a I We first each -- those We've there. there's of no risk sector in systemic particular or And book dive. no increase really -- there's of risk in special

actually loss content We them we in aren't about pushed about content this And concerned some come because this substandard time. little time. in -- but those point at loss mention for bit particular quarter. stress, at credits additional of credits down they're special concerned this those category aren't under a put in We've saw particular the we monitoring, in

and concern. anything we pretty is systemic not feel holding of up well seeing credit we're So like

quarter, loans, it's paid off. we read have the larger of The at end the already

release. Yes. And the that's in earnings

a That was million $XX exposure outstanding. not exposure,

million exposure. Is a $XX

Yes.

in waited I XXth July it... sometimes timing work And or week wished when last paid of the I doesn't it think, XXth but And the right. until, the of off June, that

actually Leslie couple we moves of idiosyncratic would couple this had there's of Yes, after what echo quarter. quarter-end. I I a mean payoffs said. a

diversified come was and but segments. each We wide those XXX no two no different a There extremely industry be different to from our one C&I was sector across back, book there's any and in underlying sector. industry industry well tends expect to see

the health the So We're and two the sector. quarter, good… off consumer there's the we as of those particular looks concerned and Raj mentioned after about of really no I said, pay and saw end of

And commercial none it was of estate. real

Right. None commercial of real it estate. was

the And appreciate Okay. into of, efficient parlaying been pretty I the bank an we from guys the going commentary out the forward, the as kind you quarter, maybe the whatever look just quarter-to-quarter overlays might then would how back waterfall we your allowance. changes. applied is But the reserve mean, happen have on, in I you allowance that in run standpoint, were implied modeling second that need recessionary that kind to year closer seeing like? as to get what continue And end in to in of the of build? period look the

happen, view reserve the would personally that is the future thing that if the wrong. the Again, I I could broadly the build to lead be of but to of economy deteriorates. personally expect don't

would if conditions, reserve in that would is the to only to reserve we significant would thing saw That really the forecasted but deterioration economic lead economic be be would not build that lead actual thing that So conditions. build.

because build carry residential the the the reserve portfolio shifts commercial the composition resi higher of portfolio. commercial, just You'll also see naturally some of to from than the portion portfolio reserves happen as

So some will happen well. that of as

you that DDA color. actually nature. where second then you there balances And seasonal good know see the That's to at outlook balances switching just gears, Okay. are I municipal the should some was an stability DDA... looking Is DDA bit talked we about about quarter, forward? how the thinking a going But see can of that encouraging be in in

Can you us? No, no. tell

No, and let answer try me that.

whatever what company, often, there's industry used has whole the It's lot like for buys been not DDA out the a into number right? doing number. pipeline different. go stability That's So people a just about well. warehouse. still the for, we right? part case, somebody relative money call. last is saw money -- something expands it's The to stable our better the you in gross market that as the suddenly to happens. the talked because stay. movement at is of of the But that gets these places number year. to that got that's for, that It's of Somebody is decided you and all used left XX% in that new And not people at DDA -- was getting building, somebody into is The know, the That happening, suffering reason replaced it want very a have, movement business from DDA, now whatever net the buys, that money movement a we into I or we with other a reason are certainly of interest-bearing is

is that Now Tom we the actually in new business. bringing pretty mentioned of the in sales executing deal environment especially big of title the keep the on business. to given that in, first-half quarter the were strategy a

talk haven't before We that. actually the the beat new the despite fourth real I be we fact brought I'll April, So may XX story relationships off about March the so of that new velocity that XX this brought a -- in last here. business year. in and did quarter. that quarter. And we by We And missed in have quarter quarter of that. the distraction is roughly one in two, the or new last but just relationships was that,

happening. and on natural DDA is the but down, the run have to stay ahead I study. that, think without able eventually still natural fill that happening. is of really really faster is to it have harder trying we faster to been the the will That just we attrition attrition all than hold would it. treadmill And to And slow don't It bucket

color. Great. Thanks for the

David Instructions] And next P. Rochester from our question will Compass [Operator come of

open. is line Your

good How guys. doing? you Hey, morning, are

morning. Good

Dave. morning, Good

morning. Good

just for, On stability that forward stable NII then was And I going was levels non-interest-bearing? looking pipeline, looking if you the portion what there. what $X.X you're mentioned you I guys wondering for the means for the the margin that was front, are of with wondering deposit on billion.

Do you want the first take to part?

Yes.

the Dave, NII focused term, depends the have say reducing So on the because it I short deposits growing we success wholesale would we in that on level. funding outlook, on the again, are,

that this of some saw You quarter.

asset come or earning so growth And loan growth. deposit from will

growth generate will growth. net I are trying net and think achieve want to think in very can we that evasive. which loan to Tom, on growth, $X.X now. just right able And what we depositor deposit That's deposit I depends hard lead behavior I'm comment that on. billion, So not deposits. will think predict to to succeed that? then growth, is to growing you we And The if be NII

say what's I coming is through would team, Yes. accounts. operating when that's NIDDA -- that look at and Dave, the treasury management since that our pipeline you largely that,

Great.

white board guys the the see versus were an beginning Okay. are actually the of the call, could half you expense what what expense year are wondering about and first-half? And management you expenses had of on program thinking lower on then just at that chances front, guys you that you was the the back when talking mentioned about front in

expenses I would say is flat give the you. I’ll guidance

the all we working It expense into last because happens happen on the So And in the from you been again, over are that expect here doesn't speak. itself. on, couple as two shouldn't motion inflationary next of that by that of months that, being things put quarters, growth. an for we've environment,

in say and growth investing And hiring parts still we I in of are producers We're certain opportunities. the still will business. investing

want figure now rebuild. way around a that where and the cut not to we out to we year we off do to So didn't things point have yet to things have a and draconian gotten turn from

Yes.

Thanks great. Alright, guys.

question our will And Steven from Instructions] [Operator of Alexopoulos JPMorgan. next come

is Your line open.

Hey, good morning, everyone.

morning. Good

Good morning, Steve.

the Want loan side. to start on

What loan in So a that? explains we was at quarter. of Do think bit pace the runoff the the residential continue you pace XQ? runoff saw in elevated will

pace the reason in been I don't on, amortization. really speeds as change think any rate are The that still had can putting first accelerated committed we the was slow, prepay of we quarter, in think pipeline the was there's the some imagine. were because well you I extraordinarily

So it's on. just really going that's amortization

don't… I So

did anything like is we sold We effect tightened up which It's not new saw. It's the that quarter, that what inorganic. anything. the and you not you do just took originations, in

the fixed similar arms or at forget speed. slides, say, portfolio, should fixed. people large of portfolio think do hybrids. and part I year, is of And Yes, we a -- our the one XX-year of of have a second-half -- I our is so only in yes, So XX%

which runs a CPR most a and is have does environment. in it better think, than this thing people it good So off,

the do securities as maybe yes, runoff But and runoff We in more portfolio much should do third saw as those well, we as continue. not in quarter. expect So the fourth expect this we some quarter. trends

know on of would end we year. based I now what say portfolio $XXX probably run the and down between today, that will resi by million the another

it. Got

That's Okay, helpful.

the core are fairly seeing are growth loan call, your pretty optimistic you why on stronger here? On the vibrant, side, commercial that commercial I'm markets given

of as the go also be but devil hand, we've several running the [Indiscernible] sort now is business what detail. growing some quarters that would running down we're in in I one core the business, or example letting an or the we leasing for $XXX the call, On been down. franchise non-core of are will of of Again, business, like business million credit-only

growing, which business core Actually, comes shrinking deposits healthy. is it even growing want or to York stuff transactional. is we the what So is that in growing grow, that is New the with is not

closings we're credits deal over upsizing or a business time builds middle on We're of get redial to time. to Steven, Yes. and I would other that or you that they new of fall of and of advantage opportunities those there taking the exit book this national period seeing quarter going But the that at terms also things Your shared an add, don't of you sort of or exit. some opportunistically, to a opportunity when you but originations a that where those good over exit credits have of you comes national of have in kind back time, are necessarily come of shared of fundings a far period XX-month category, of quarter opportunities things, come right? into in get where it's and that period within period time, mature, and so that and market to nature. opportunity of that it a

we that deposits subsequent with got we and and will loans redirect out how QX of effort we come $XXX into QX to that quarters continue TM in of through think million is that that deals higher-generating business. So will can that in bilateral be a strategy

is we second-half? So the Or in this expect a… growth net should commercial loan

yes. Yes,

Yes.

to will loans Enough see $XXX we'll be flattish Leslie, offset Okay. the million, enough? where there

Steve. so, Yes, I think

helpful. That's final then Okay. question. And

on getting offense of here, So long-term non-interest-bearing terms when to launched back eye like had Raj, off of you in their ball terms industry the plan, back the deposits. BankUnited X.X, the in

to with your actually now, what's everybody a market than Now year to was the fairly different playbook? Like reenter Do environment ago. now I and is improve. even is non-interest-bearing right a the it's ability know the retain pipeline deposits. you but today trying it same grow strong totally where

all question end common most a down when back that backed as one investors other I've is, the levels. Listen, the get and there will everyone call where that deposits next course two, dust of of percentage the heard over settles And you from from because let's has to some, at I up that, NIDDA projections, are off high of XX% Yes. were it XX%. XXXX year the or go

DDA we'll only in XXXX to $XX levels. back not million I bank say bought you'll we didn't so to Some it. prior back XXXX, we sure had go level. I'm that The in when go exist that remind

getting I'm certain there. So we're XXX% not

through key But -- that's building probably business, that driver. the earnings, the it when stabilizing even the thing and new that to value by doing is short-term most and That's most comes DDA long-term the important way.

that goes plan deposit anything also executing on what have, focused billion base and better, long-term than through pipeline is not $X.X So still only better we're against building we're a we right? right that. but else bigger, on more focused than The

more -- bank, that. very We're want breathing more more room want But ratio. close don't to quarter. FHLB down over for XXX%. the to I've have a breathing run XX%, a more take get I to better, even be more to more can -- We don't this have if book core or little loan-to-deposit right? vocal funding of we grow we've about even create don't I the over but want bank -- XXX% XXX% that's business, ourselves been created We core need bigger at to happy more need room, to loan

often, that it a the tactics. not If long-term often. So strategy change that changes it's then long-term then strategy, doesn't very it's

the to to Yes, to us changed term, back But go North put we up up rates and economies change, get go So noise the what we -- build. behind and what just you Star really still environments down, long interest trying down. were want a or executing. and we're hasn't executing got

which on a about is that think when doing would points would I add execution word the I you that be used, focus would of Steve, it. say strategy. Raj a intense well One couple to as

quality second, may of last quarter. think added we probably a up, number the you producers I the have in picked

really we bring continue the over as banks last business that all to, added So have alluded basin have Leslie people the talent invest came base but year we can in talent really, to particularly areas, that that commercial that from of quarter. in the the to excellent us they to

payables and third API receivables, the management the And connectivity, investment in type programs, is cash integration technology-driven continued opportunities.

three So the us it's focused to there. that to that things going people are and are going be product get

the all color. for Thanks it. Got

our Preston will of UBS. And Brody come question [Operator Instructions] next from

is line open, Your Brody.

everyone. Hey, good morning,

morning. Good

morning, Brody. Good

I quick securities Hey, just ask on the yield. real wanted to

is floating down. Leslie, XX% had what I XX% think it was rate, written to I

as up came I hoping you yield for. a bit less the was so why? I And looking give than maybe could me to details little was some

and Yes. don't It But around that are floating, all I this portfolio some hit in about caps. exact me. with is have the securities numbers XX% there Brody, the

why And little came so that's trajectory a bit. that down

Got it.

where look average terribly far the kind Okay, on deposit would you just And ask quarter. okay. end Thanks would interest-bearing did the I say spot didn't It costs. want rate too to for then the of the office to that. on

that so is the within step-up gave? And going at you sense the on guidance trajectory for what you look the guess expected interest-bearing you costs, I margin deposit when forward have a the do

it going up I again. to mean, step is Brody,

I think without question, next quarter.

deposits Speakers] [Multiple Time

Time enrolling. deposits

a CDs, to the think that little I cycle beta a get the including is be is going XX%. all-in before And terminal think far, through little bit rate. higher we over I So

going So is to it again. go up

this sort It period at end. in the strong balance you sheet the of the growth in Was going that wanted the quarter? the average stick Got of had anything the in bearing on what in understand there forward? for me Raj, to Tom. implies NIBs non-interest-bearing. When drove it. maybe half drove that you is And I or I around help of kind seasonal the maybe should the in also Could back some that rebound of back ask And half quarter, that? non-interest look

there seasonal. don't I was think anything

don't so. I No, think

that's versus No. that's is there of the people it's didn't cycle We no special to middle happened flows. -- or all But sort There deposit do Tom, month month. have pattern if is mentioning? end the worth month just -- I voted of that a about unique sales deals fluctuations a when we every a -- I there's don't And know, nothing to happen. on some and think when you...

would say, some build I purposes, of corporates quarter wanting to up a than normally, end really. reporting for No, but liquidity see you financial that trend at other

of onboarding I as the there's do But we think think know, usual. pretty through in quarter was all a saw the weird time. of the in back we anything beginning we half accounts don't back half a is I than the it stronger saw new

was what it that's maybe probably. Yes,

don't was deposit about anybody bank-to-bank. so from thinking probably I has to in I relationship think Everybody was April, something that think -- do... moving Yes. their

two As the Raj within said, quarter quarters quarter. was really a

was back recovering of And the kind the quarter to, normal. to of first still from starting is The quarter second was first this part second the quarter. get

Yes. Normal.

Got it.

the before just largest about but spoken you've And know obviously back of I solutions? DDA I I some deposit sort at title And the nothing have. businesses zero then that since Raj, the deposit -- then. beyond on grown more wanted within $X was is billion, a you've but $X.X detail noninterest-bearing think That's book, solutions just segment XXXX, Okay. the title in you that I over business billion. guess that other

building than the That years? COVID. several saw last deposit you've deposits had flow the there industry of some different, non-interest-bearing success are in over areas the guess, the kind I of What different other just are noninterest-bearing maybe that of excess that

of clarify, just funds. DDA. is majority the So low cost title has all and to It very the not -- DDA is title a

nicely. over other few which HOA very But also with it. operating. very to always around the amount it's years, is a come is already that the market last money which great So as year. business, there's some DDA, money would the $X business also we Again, I point Likewise, having built And some of They're growing nice but that's well. billion. also market

I June. think they already met their by year-end goals

team. that solid So a year pretty for

that we we And sometimes 'XX you the much us are or investments time that about right But them the we there now, talk probably we're small years’ they time. one some make for time, in like two never in like of three talk which of or are these that title other XXXX niches launched about are and businesses all sometimes the successful, tinkering investing a building are out not. heard are business other spending this. lot we when fruit haven't I but maybe there, focus competitive -- We're were don't reasons, on with busy that experimenting will to yet. always and sort bear in they're

you the with sort and in those are two to more there years. to prominent hopefully, more couple share of most of the -- So a ones, will HOA title be but

guess, Got something. for performing this know before seen it. kind I some strategically one seen me, quick. what the range type pretty real just And And depending of sell I then of it's but last never you, loans been, on, exit office wide We've banks quarter. for a been And a outcomes. well afraid building few is we've of you to book office

portfolio a the say, just… make there, you you sense within and do to might anything maybe it or here sale there look loan at is so And

selling don't like We a I portfolio. at see the any discount. that of portfolio

Yes.

guys, Fantastic. Thank I for it. much you the questions. very appreciate

Thanks.

our [Operator Sachs. Goldman question DeGrasse from Christian will Instructions] come next And of

open, is line Your Christian.

Hey, good morning.

Good morning, Christian.

like amount. seems What fierce pipeline. now, is it's billion $X.X the just geography is that's demographic valuable type as right on ever follow-up another and deposit and competition just really from? been this So coming customer as that a It of

are seeing really So opportunity? where you this

area, It's we market. Raj in over it’s work Atlanta, business, places. of give lot -- within solutions answer. it's New HOA, all small York, title in It's within a you the all geographies everywhere. middle to as It's C&I, I'm Yes. strange of It's it's core Florida, mentioned, It's within a going that our the geographies. in

I happen quarter. to billion doesn't growth $X.X that this to clarify, this mean want going is of

Correct.

to [Multiple This pan pipeline. takes out three a is quarters to It won't Speakers] execute two well. as

Yes.

where me might are and might that is these a or proposals or in but I It I have give who not have is because the level deposit. and in is come. think the pipeline, trading we This at that treasury people business handshake open are where the accounts good a somebody name least out call it somewhere are -- happening is a -- of pipeline of like, there's this have I who will somewhere certainty

Sometimes the time show open, business accounts after up. are doesn't even

So to expectation. want in be I have just the -- grounded

pipeline we $X.X environment this getting else. This that actually in But billion than, this will is focus that's I people commendable. reason on is to important do thing most the are is paid here. And more anything the this what more like said,

at, and we think deposit NIM. mentioned this were loan guys do Yes. you see I stay Thank looking different rate rates, new pretty kind But prolonged I you you. environment? scenario on. you hypothetically, a you mentioned a so, yields in guys in scenarios are for That's definitely we call see a some then week, a putting helpful. quite shifting a Tom hike some number at time, it, year higher-for-longer the If how think And attractive of, pause rate of or very Leslie,

forward at So five it gave a in guidance predicated printed minutes hikes it. feels that I we had curve the forecast, is every rate the like that Christian, on the time changes it two

rate one get then I that, We're little bit. to the a do from at and pause, deposit think baked we'll low a more and higher and here, that. going looking hike XXs into think, what's accelerate I bit to to, betas kind probably that's as we're are little Now said now, I than of a in

Thank you.

And RBC of Instructions] Jon question Capital will Arfstrom [Operator from Markets. last our come

Your line open. is

morning. Good Thanks.

morning. Good

Jon. morning, Good

conversations. the tactical picture Is for big went But a would through. appreciate ones. near-term near-term exercise I exercise billion the you? on the me couple tactical Raj, of exhausted talked a deposit that and you be you same right I'm priority And let about $X.X priorities now? you what

deposits Honestly think of and levels feel I speaking, so. still lot important of available a XX stuff to things today ago. some did less is that they liquidity, less liquidity some those and days relevant than uninsured

DDA expense stabilization, of still growth, that management, very are NIM However, deposit growth, nature, relevant. they things

example, liquidity So I eye bit I'm every think keep at of an on still is looking day? but probably metrics, that for down that in we'll move little a what terms --

-- a get described the don't I that and I a or don't see out to that don't of going bank. March, report to about e-mails used actually. when said want wires getting I I day were as look is get now where to was that that down day step in report information. that three anymore, today. we've two in I a place once from it irrelevant a We a need to twice week, back once again. It's to normal day a at and gone to it at

does. get more I than that he

in One I can time just my on my that last thing remarks other focus things. at looking

of will -- and still like still of category, board it yes feels relevant, not still all is a is that So that relevant large that white it. but stay part

single Okay. relationship Or expect Credit, that's this is ways guess, time? that? time? just a how go, to pool, is down basically transactional do one more, to churn the And could going I different big the bring Good, but Shared that National that I over bunch something you of over

down will over It time. come

been there part of pandemic issues, accessible local high other because not to play, market the that that an when the into organization. put the it's when opportunities units of and strategy most has across think rate, I opportunity but health middle was business reasons available type our floating of or built quality during up never liquidity business was not the principal was of

our right redistribute bank, long-term the will we with of to to necessarily in will in opportunity we business, lead we an important opportunities and and it it those think out to credits quality in business will risk not factor or be to that better of continue exit an growth, where get that terms lead are the not deposit brings but be the credits. important so we the it's left underlying the ratings overall relationships And

you portfolio disclosed big Have how Okay. that is inside?

not. have we No,

into disclose a referring past, portion but have is to some Credits, I we Shared think disclosed that to in we that a the we National have. we're business have of think have here that more. the relationship little I We'll because dig business. not total of don't

I’ll you Thank much. good. very you go. appreciate I Okay, let it.

you. Thank

this And the I closing to time. I'm showing to Raj questions at remarks. no like turn Singh call now back would further for

I'll end different very I focusing the call to we're the gods for the and same started It that. does what feel be with And days. it. you XX-days the is from relationship-oriented way see we'll ago time in long-term on, you. on you bank. Bye. to thankful happy market us, you taking a -- and focused XX talk And to Thank again engaging building we'll always appreciate and we've

for call. This participating. concludes Thank conference today's you

disconnect. now may You