BankUnited, Inc.

Good day and welcome to Bank United, Inc.'s second quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jackie Bravo, Corporate Secretary. Please go ahead.

Thank you. Thank you, Chloe. Good morning and thank you everyone for joining us today for Bank United, Inc.'s second quarter 2026 results conference call. On the call this morning are Raj Singh, Chairman, President, and CEO, Jim Mackey, Chief Financial Officer, and Tom Cornish, Chief Operating Officer. Before we begin, please note that our remarks today may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially. 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. Additional information regarding these risks can be found in the company's annual report on Form 10-K for the year ended December 31st, 2025, 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. Thanks, everyone. I know it's a busy day. We'll be quick with our comments and get you to Q&A. Before I start the earnings and get into the numbers, I was looking at actually the transcript from our last call, and I read the very last comment that I made. There was a question that was asked. I forget who asked that question, which was, if there's one thing that you're looking at that matters more than anything else, what is it? I'm paraphrasing. And my answer was NIDDA. NIDDA growth is the most important thing for us. If we take care of that, everything else will take care of itself. So I'm happy to announce NIDDA growth this quarter came in exactly where we expected. But more importantly, we reached a pretty big milestone that internally we've been focused on for quite some time. We have finally crossed the high watermark of NIDDA to total deposits, which now stands at 34.4%. We set the high watermark during the height of COVID when money was free. We're now at a record high in the company's history of that ratio which is a very important number for us in terms of building long term franchise value. almost at a milestone of $10 billion. It ticks me off that we missed it by just an inch or two. It's $9.935 or something like that, but I hope you'll indulge me and let me call it $10 billion. So that was also a pretty big sort of battle cry inside the company for the last several months, and I'm very happy. I want to take a moment to thank everyone in the company. It takes a village. It's not just a few people in the company, everyone from the front line to the back office and everyone in between has been working very hard over many years to achieve this. So I actually even went back and looked at that over the last 10 years we have grown our deposit portfolio by about $10 billion and seven of that $10 billion has been NITDA. That's a remarkable, and by the way, of course, you know It goes without saying, all of it done one client at a time, not through acquisitions. We didn't pay for this through Goodwill or anything, just good old-fashioned bringing in one client at a time. So I just wanted to start off with that. It's a pretty big thing for us and we've been focused on it. Of course, the new targets will be sent out to everyone's inbox before the end of the day. We're not stopping at 34.4. We want to move this further. With that, having said that, let me get back into the earnings. These are peer-to-peer numbers, obviously. This is our biggest quarter, so I've always said focus on averages, so I'll talk more about averages because that's what drives the P&L, but I just wanted to get that out of the way. Earnings came in at $0.97 a share, a net income of about $71 million. ROE improved last quarter. It was, I think, 8.1. Now we're at 9.3. Deposits, like I said, you know, a pretty big quarter for us, no matter how you look at it. Whether it's core deposits, which is excluding ProBird, they were up very strongly. NIDDA was up very strongly. Actually, if I look at quarter over quarter and year over year, you know, NIDDA year over year is up 13%. I think we guided that this year will be about 12%, so we're running a little bit ahead of the guidance we gave you. Core deposits are up year over year. These are all averages. up about 7%, and that also, I think the guidance we give you was about 7%. So we're doing a little bit better, but all within the rounding, you know, I would call that right on top of the guidance we gave you.