BankUnited, Inc.

Good day and thank you for standing by. Welcome to the Bank United Second Quarter 2025 Earned Use Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jackie Bravo, Corporate Secretary. You may begin.

Thank you, LaTanya. Good morning and thank you everyone for joining us today for Bank United Inc's Second Quarter 2025 Results Conference Call. On the call this morning are Raj Singh, Chairman, President, and CEO, Leslie Lunak, Chief Financial Officer, and Tom Cornish, Chief Operating Officer. Before we start, I'd like to remind everyone that this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It reflects the company's current views with respect to, among other things, future events and financial performance. Any forward-looking statements made during this call 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 as 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 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 adverse events impacting the financial services industry. 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. These factors should not be considered as exhaustive. Information on these factors can be found in the company's annual report on Form 10-K for the year ended December 31, 2024, and any subsequent quarterly report on Form 10-Q or current report on Form 8-K, which are available at the SEC's website. With that, I'd like to turn the call over to Mr. Raj Singh.

Thank you, Jackie. Good morning, everyone, and welcome. I know it's a busy earnings day. Thank you for joining us. This is a pretty outstanding quarter for us, very happy with the results. Net income came in at about $69 million or $0.91 a share. I think the last checked consensus was around $79 million, so very happy for a nice beat there. ROE improved to 78 basis points from 68 last quarter and 61 basis points second quarter of last year. ROE improved to 9.4%, so we're getting closer and closer to the 10% mark. Last quarter was 8.2%, and last year was 8% at this time. The highlight of the quarter obviously has been the deposit on the deposit front. In a very impressive deposit growth quarter, NIDDA is up more than $1 billion. Average NIDDA is up $581 million, and total non-broker deposits grew $1.2 billion. We did all this and achieved declining deposits cost, which we'll talk about in a second. We guided at the beginning of the year to a double-digit NIDDA growth. So far, we're already at 20%. I will acknowledge the seasonality in these numbers, but even if you look at our NIDDA growth from last year, this time to now, we're up 13%, which is a pretty sustainable, nice growth rate. NIDDA is now 32% of total deposits, so that was another milestone that we had been talking about getting past the 30%, and we're there. We crossed the 30%. We're at 32%. It's still not the highest level that we've ever been at, which was during the... Its peak was back, I think, in 22. We'd hit 34%. So we will set our target now to that high watermark, and we'll hopefully cross that in the near term, probably next year. Funding composition and remix are working. Deposits costs are lower. Spat cost of deposits declined by 15 basis points to 237 from 90 days ago when it was 252. A year ago, of course, it was much higher, 72 basis points higher. So wholesale funding was paid down again, $749 million paid down in wholesale. Loan to deposit ratio now stands at 83.6%, down from .5% last quarter. So all of this improvement in the funding mix and also improvement on the left side of the balance sheet contributed to a very nice expansion of margin. Margin expanded from 281 last quarter to 93, so 12 basis points improvement in margin. And net interest income increased by .6% just quarter over quarter. So we're very happy, which is... All of this is driving the bottom line. With respect to loans, commercial loans grew by $68 million. And if you break that up in between CNI and CRE, CRE grew by 267 million and CNI declined by 199 million. Tom will talk more about that. The production has been actually fairly good. The payoffs, unfortunately, have also been fairly good, which is why we had a slight decline. Resi portfolio is running off as predicted, so no surprises here. Let's get to credit. Total criticized classified loans declined by 156 million. I think this is one of the largest reductions we've seen in quite some time, so we're very happy about that. Not unexpectedly, though, we did see some migration into NPLs. NPLs grew by 117 million. I think a majority of this, I believe 86 million of that 117 is office-related. So not all office loans will eventually get upgraded and pay off, although some did pay off and some did get upgraded, but some did move into NPLs as well. There were no surprises here. This was expected. With respect to capital, SET1 now is at 12.2%. On a former basis, including AOCI, it is at 11.3%. DCE to TA ended at 8.1%. Again, tangible book value per share grew to $38.23. I think that's a 9% increase over the last 12 months, so we're happy about that. The board met yesterday to go over the earnings and talk about capital as they always do. They authorized a $100 million stock buyback program, which will go into effect after earnings. You've often asked us about buybacks and capital accretion and how we think about this. Our priorities haven't changed. The number one priority is to run a safe and sound bank. The second is to grow our balance sheet in a safe and sound manner and then, of course, increase regularly dividends every once a year and then there's capital left over to actually return it through buyback. So we're executing on that strategy. The environment today feels very different from 90 days ago when we last spoke to you. If you remember 90 days ago in April, we were just still shell-shocked from all the tariff situations that we were dealing with. It feels like a different world today, but I will say that it is a fairly... Well, there is less uncertainty today, relatively speaking. I think there is still uncertainty still out there that we have to be careful of and keep that in mind as we run the bank. So our priorities haven't changed. Manage the bank in a prudent way, grow responsibility, focus on profitability, manage our credit and our pipelines, and continue to deliver on the recomposition of the balance sheet. If we do that, earnings will take care of themselves and we'll be a stronger company over time. Lastly, I would say, you may have seen this in the news. I think we put this out already on recent expansion. We have expanded into New Jersey with a team and an office and also very recently into Charlotte, where we have a team and we will soon have an office as well. Let me turn it over to Tom and then Tom will pass it over to Leslie and then I'll come back for a few remarks and then we'll open for Q&A. Tom?