BankUnited, Inc.

Previous wording

The following discussion and analysis is intended to focus on significant matters impacting and changes in the financial condition and results of operations of the Company during the nine months ended September 30, 2024 and should be read in conjunction with the consolidated financial statements and notes hereto included in this Quarterly Report on Form 10-Q and BKU's 2023 Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report on Form 10-K").

Current wording

The following discussion and analysis is intended to focus on significant matters impacting and changes in the financial condition and results of operations of the Company during the three months ended March 31, 2025 and should be read in conjunction with the consolidated financial statements and notes hereto included in this Quarterly Report on Form 10-Q and BKU's 2024 Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Annual Report on Form 10-K").

Previous wording

This Quarterly Report on Form 10-Q 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. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” "future" and similar expressions identify forward-looking statements. These forward-looking statements are based on the historical performance of the Company 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 so contemplated will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions 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. 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. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to, the risk factors described in Part I, Item 1A of the 2023 Annual Report on Form 10-K and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K. 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.

Current wording

This Quarterly Report on Form 10-Q 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. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” "future", "could", and similar expressions identify forward-looking statements. These forward-looking statements are based on the historical performance of the Company 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 so contemplated will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions 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. 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. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to, the risk factors described in Part I, Item 1A of the 2024 Annual Report on Form 10-K and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K. 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.

Previous wording

Net income for the three months ended September 30, 2024, was $61.5 million, or $0.81 per diluted share, compared to $47.0 million, or $0.63 per diluted share, for the three months ended September 30, 2023. Net income for the nine months ended September 30, 2024, was $163.2 million, or $2.17 per diluted share, compared to $157.9 million, or $2.11 per diluted share for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, the annualized return on average stockholders' equity was 8.1% and the annualized return on average assets was 0.62%.

Current wording

Net Income for the three months ended March 31, 2025 was $58.5 million, or $0.78 per diluted share, compared to $48.0 million, or $0.64 per diluted share for the three months ended March 31, 2024. For the three months ended March 31, 2025, the annualized return on average stockholders' equity was 8.2% and annualized return on average assets was 0.68%.

Previous wording

In evaluating our financial performance, we consider the level of and trends in net interest income, the net interest margin, the cost of deposits, trends in non-interest income and non-interest expense, performance ratios such as the return on average equity and return on average assets and asset quality ratios, including the ratio of non-performing loans to total loans, non-performing assets to total assets, trends in criticized and classified assets and portfolio delinquency and charge-off trends. We consider the composition of earning assets and the funding mix, the composition and level of available liquidity and our interest rate risk profile. We analyze these ratios and trends against our own historical performance, our expected performance, our risk appetite and the financial condition and performance of comparable financial institutions.

Current wording

In evaluating our financial performance, we consider (i) the funding mix and the composition of interest earning assets; (ii) the level of and trends in net interest income and the net interest margin; (iii) the cost of deposits, trends in non-interest income and non-interest expense; (iv) performance ratios such as the return on average equity and return on average assets and asset quality ratios, including the ratios of non-performing loans to total loans and non-performing assets to total assets; (v) trends in criticized and classified assets; and (vi) and portfolio delinquency and charge-off trends. We analyze these ratios and trends against our own historical performance, our expected performance, our risk appetite and the financial condition and performance of comparable financial institutions.

Previous wording

We are focused on improving the Company's core profitability by emphasizing the following near-term strategic priorities:

Current wording

Near-term strategic priorities focused on improving the Company's core profitability include:

Previous wording

•Improve the Bank's funding profile by growing core deposits and paying down higher cost wholesale funding;

Current wording

•Improve the Bank's funding profile by growing core deposits and paying down higher cost funding;

Previous wording

•Manage the rate of growth in operating expenses.

Current wording

•Managing the rate of growth in operating expenses.

Previous wording

◦The Company's funding profile has improved significantly over the course of 2024. For the nine months ended September 30, 2024, wholesale funding, including FHLB advances and brokered deposits, declined by $1.9 billion, while non-brokered deposits grew by $1.7 billion, including an increase of $800 million in NIDDA.

Current wording

•Wholesale funding, including FHLB advances and brokered deposits, declined by $1.1 billion for the three months ended March 31, 2025.

Previous wording

◦The loan to deposit ratio declined to 87.6% at September 30, 2024, from 88.7% at June 30, 2024 and 92.8% at December 31, 2023.

Current wording

•The loan to deposit ratio declined to 85.5% at March 31, 2025, from 87.2% at December 31, 2024.

Previous wording

◦Net charge-offs remained low and were $6.5 million for the three months ended September 30, 2024. The annualized net charge-off ratio for the nine months ended September 30, 2024, was 0.12%. The NPA ratio at September 30, 2024 was 0.64%, including 0.10% related to the guaranteed portion of non-performing SBA loans, compared to 0.50%, including 0.11% related to the guaranteed portion of non-performing SBA loans at June 30, 2024.

Current wording

•The annualized net charge-off ratio for the three months ended March 31, 2025, was 0.33%. The net charge-off ratio for the trailing twelve months was 0.24%. The NPA ratio was 0.76%, including 0.09% related to the guaranteed portion of non-performing SBA loans at March 31, 2025, compared to 0.73% including 0.10% related to the guaranteed portion of non-accrual SBA loans at December 31, 2024.

Previous wording

◦The ratio of the ACL to total loans increased to 0.94% at September 30, 2024; the ratio of the ACL to non-performing loans was 101.68%. The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.41% at September 30, 2024 and the ACL to loans ratio for CRE office loans was 2.20%.

Current wording

•The ratio of the ACL to total loans was 0.92% at March 31, 2025, consistent with the prior quarter-end. The ratio of the ACL to non-performing loans was 84.58%, The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.34% at March 31, 2025 and the ACL to loans ratio for CRE office loans was 1.99%. The provision for credit losses was $15.1 million for the three months ended March 31, 2025 compared to $11.0 million for the preceding quarter.

Previous wording

◦Commercial real estate exposure is modest totaling 25% of loans and 164% of the Bank's total risk-based capital at September 30, 2024. By comparison, based on call report data as of June 30, 2024 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 220%.

Current wording

•Our commercial real estate exposure totaled 26% of loans and 173% of the Bank's total risk based capital at March 31, 2025. By comparison, based on call report data as of December 31, 2024 for banks with between $10 billion and $100 billion in assets, the median level of CRE to total loans was 34% and the median level of CRE to total risk based capital was 218%.

Previous wording

◦At September 30, 2024, CET1 was 11.8% and pro-forma CET1, including accumulated other comprehensive income, was 10.9%. The ratio of tangible common equity/tangible assets increased to 7.6%.

Current wording

•Our capital position is robust, At March 31, 2025, CET1 was 12.2% and pro-forma CET1, including accumulated other comprehensive income, was 11.2%. The ratio of tangible common equity/tangible assets increased to 8.11%.

Previous wording

◦Book value and tangible book value per common share grew to $37.56 and $36.52, respectively, at September 30, 2024, from $36.11 and $35.07, respectively, at June 30, 2024.

Current wording

•Book value and tangible book value per common share continued to accrete, to $38.51 and $37.48, respectively, at March 31, 2025, compared to $37.65 and $36.61, respectively, at December 31, 2024, and $35.31 and $34.27, respectively, at March 31, 2024.

Previous wording

(1)On a tax-equivalent basis where applicable. The tax-equivalent adjustment for tax-exempt loans was $3.0 million for the three months ended September 30, 2024, $3.1 million for the three months ended June 30, 2024, and $3.3 million for the three months ended September 30, 2023. The tax-equivalent adjustment for tax-exempt investment securities was $0.9 million for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023.

Current wording

(1)On a tax-equivalent basis where applicable. The tax-equivalent adjustment for tax-exempt loans was $2.7 million for the three months ended March 31, 2025, $2.9 million for the three months ended December 31, 2024, and $3.2 million for the three months ended March 31, 2024. The tax-equivalent adjustment for tax-exempt investment securities was $0.7 million for both the three months ended March 31, 2025 and December 31, 2024, and $0.8 million for the three months ended March 31, 2024.

Previous wording

Net interest income, calculated on a tax-equivalent basis, was$238.0 million for thethree months ended September 30, 2024, compared to $230.0 millionfor the three months ended June 30, 2024, an increase of $8.0 million. The increase in net interest income was comprised of increases in tax-equivalent interest income and expense of $9.0 million and $1.0 million, respectively, for thethree months ended September 30, 2024, compared to thethree months ended June 30, 2024. The net interest margin, calculated on a tax-equivalent basis, was 2.78% for the three months ended September 30, 2024, compared to 2.72% for thethree months ended June 30, 2024.

Current wording

Three months ended March 31, 2025 compared to thethree months ended December 31, 2024

Previous wording

•The average rate paid on FHLB advances decreased to 4.27% and 4.24%for thethree and nine months ended September 30, 2024, from 4.57% and 4.48%for thethree and nine months ended September 30, 2023, primarily due to repayment of higher rate advances, partially offset by maturities of some cash flow hedges.

Current wording

•The average rate paid on FHLB advances declined to 3.69% for the three months ended March 31, 2025, from 3.82% for the three months ended December 31, 2024, primarily due to repayment of higher rate short-term advances partially offset by expiration of cash flow hedges.

Previous wording

•The tax-equivalent yield on investment securities increased to 5.62% and 5.60% for the three and nine months ended September 30, 2024, from 5.48% and 5.20% for the three and nine months ended September 30, 2023. These increases resulted primarily from the reset of coupon rates on variable rate securities, purchases of higher-yielding securities and paydowns and sales of lower-yielding securities.

Current wording

•The tax-equivalent yield on investment securities declined to 5.07% for the three months ended March 31, 2025, from 5.31% for the three months ended December 31, 2024. This decrease resulted primarily from coupon rate resets on variable rate securities.

Previous wording

Net interest income, calculated on a tax-equivalent basis, was $238.0 million for the three months ended September 30, 2024, compared to $219.1 million for the three months ended September 30, 2023, an increase of $18.9 million. The increase was comprised of increases in tax-equivalent interest income and interest expense of $21.4 million and $2.5 million, respectively.

Current wording

Net interest income, calculated on a tax-equivalent basis, was $236.6 million for the three months ended March 31, 2025, compared to $218.9 million for the three months ended March 31, 2024, an increase of $17.7 million. The increase was comprised of decreases in tax-equivalent interest income and interest expense of $38.4 million and $56.1 million, respectively.

Previous wording

Increases in interest income for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, reflected rising yields on interest earning assets that more than offset the decline in average interest earning assets. Similarly, increases in interest expense for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, resulted from increases in the cost of interest bearing liabilities that more than offset the decline in average interest bearing liabilities.

Current wording

The decrease in tax-equivalent interest income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was attributable to a decrease in the yields on interest earning assets. The decrease in interest expense for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, was attributable to decreases in both the average balance and cost of interest bearing liabilities.

Previous wording

The net interest margin, calculated on a tax-equivalent basis, increased to 2.78% and 2.69% for the three and nine months ended September 30, 2024, respectively, from 2.56% and 2.55% for the three and nine months ended September 30, 2023, respectively. The increase in the net interest margin for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 was primarily a result of balance sheet repositioning, particularly an improved funding mix. For the three months ended September 30, 2024 compared to the three months ended September 30, 2023, average NIDDA increased by $447 million while average FHLB advances declined by $2.3 billion. For the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, average NIDDA was stable while average FHLB advances declined by $2.6 billion.

Current wording

The net interest margin, calculated on a tax-equivalent basis, increased to 2.81% for the three months ended March 31, 2025, from 2.57% for the three months ended March 31, 2024. The increase in the net interest margin for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily a result of balance sheet repositioning, particularly an improved funding mix. For the three months ended March 31, 2025 compared to the three months ended March 31, 2024, average NIDDA grew by $852 million while average FHLB advances declined by $1.6 billion. Average NIDDA was 27.1% of average total deposits for the three months ended March 31, 2025, up from 24.7% for the three months ended March 31, 2024. Within interest bearing deposits, there was a shift from generally higher priced time deposits to generally lower priced forms of interest bearing deposits. On the asset side of the balance sheet, average core C&I and CRE loans increased to 62.8% of average loans from 61.9% of average loans, while residential loans declined to 31.4% of average loans from 31.9% of average loans.

Previous wording

Increased yields on average interest earning assets as well as increases in the cost of deposits reflected the impact of a sustained higher rate environment.

Current wording

Decreased yields on average interest earning assets as well as the decrease in the cost of interest bearing liabilities were primarily attributable to the declining interest rate environment.

Previous wording

The following table presents the components of the provision for (recovery of) credit losses for the periods indicated (in thousands):

Current wording

The following table presents the components of the provision for credit losses for the periods indicated (in thousands):

Previous wording

The provision for credit losses may be volatile and the level of the ACL may change materially from current levels. Future levels of the ACL could be significantly impacted, in either direction, by changes in factors such as, but not limited to, economic conditions or the economic outlook, the composition of the loan portfolio, the financial condition of our borrowers and collateral values.

Current wording

The provision for credit losses may be volatile and the level of the ACL may change materially from current levels. Future levels of the ACL could be significantly impacted, in either direction, by changes in factors such as, but not limited to, economic conditions or the economic outlook, the composition of the loan portfolio, the financial condition of our borrowers and collateral values. In the current environment, changes in economic conditions could be particularly impactful.

Previous wording

The determination of the amount of the ACL is complex and involves a high degree of judgment and subjectivity. See “Analysis of the Allowance for Credit Losses” below for more information about how we determine the appropriate level of the ACL and about factors that impacted the ACL and provision for credit losses.

Current wording

The determination of the amount of the ACL is complex and involves a high degree of judgment and subjectivity. See “Analysis of the Allowance for Credit Losses” below for more information about how we determine the appropriate level of the ACL and about factors that impacted the level of the ACL.

Previous wording

The decrease in lease financing revenue for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, was primarily attributable to a lower level of rental income as we have opportunistically sold some operating lease equipment in a strategic effort to reduce the size of the operating lease equipment portfolio. Expense related to the depreciation of operating lease equipment reflected a corresponding decrease over these comparative periods.

Current wording

The decrease in lease financing revenue for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was attributable to the continuing decline in the size of the operating lease equipment portfolio and lower residual income. Expense related to the depreciation of operating lease equipment reflected a corresponding decline over these comparative periods.

Previous wording

The following table presents the components of non-interest expense for the periods indicated (in thousands):

Current wording

The following table presents components of non-interest expense for the periods indicated (in thousands):

Previous wording

The year-over-year increase in deposit insurance expense was primarily attributable to an additional $5.2 million related to an FDIC special assessment recorded during the first quarter of 2024.

Current wording

The decrease in deposit insurance expense was primarily attributable to a $5.2 million FDIC special assessment incurred during the three months ended March 31, 2024.

Previous wording

The decline in depreciation of operating lease equipment for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, is primarily attributed to a smaller operating lease equipment portfolio, corresponding to the decline in lease financing revenue.

Current wording

The decline in depreciation of operating lease equipment for the three months ended March 31, 2025 was primarily attributable to the continued decline in the size of the operating lease equipment portfolio as discussed above.

Previous wording

The following table shows the amortized cost and carrying value, which, with the exception of investment securities held to maturity, is fair value, of investment securities at the dates indicated (in thousands):

Current wording

The following table shows the amortized cost and carrying value, which is fair value, of investment securities at the dates indicated (in thousands):

Previous wording

Our investment strategy is focused on ensuring adequate liquidity, maintaining a suitable balance of high credit quality, diverse assets, managing interest rate risk, and generating acceptable returns given our established risk parameters. We have sought to maintain liquidity by investing a significant portion of the portfolio in high quality liquid securities including U.S. Treasury and U.S. Government Agency and sponsored enterprise securities. We have also invested in highly-rated structured products, including private-label commercial and residential MBS, collateralized loan obligations, single family real estate-backed securities and non-mortgage asset-backed securities that, while somewhat less liquid, are generally pledgeable at either the FHLB or the FRB and provide us with attractive yields. Investment grade municipal securities provide liquidity and attractive tax-equivalent yields. We remain committed to keeping the duration of our securities portfolio short; relatively short effective portfolio duration helps mitigate interest rate risk. The estimated effective duration of the investment portfolio was 1.74 years andthe estimated weighted average life of the portfolio was 5.4 yearsas of September 30, 2024.

Current wording

Our investment strategy is focused on ensuring adequate liquidity, maintaining a suitable balance of high credit quality, diverse assets, managing interest rate risk, and generating acceptable returns given our established risk parameters. We have sought to maintain liquidity by investing a significant portion of the portfolio in high quality liquid securities including U.S. Treasury and U.S. Government Agency and sponsored enterprise securities. We have also invested in highly-rated structured products, including private-label commercial and residential MBS, collateralized loan obligations, single family real estate-backed securities and non-mortgage asset-backed securities that, while somewhat less liquid, are generally pledgeable at either the FHLB or the FRB and provide us with attractive yields. Investment grade municipal securities provide liquidity and attractive tax-equivalent yields. We remain committed to keeping the duration of our securities portfolio short; relatively short effective portfolio duration helps mitigate interest rate risk. The estimated effective duration of the investment portfolio was 1.79 years andthe estimated weighted average life of the portfolio was 5.3 yearsas of March 31, 2025. Approximately 70% of the securities portfolio was floating rate at March 31, 2025.

Previous wording

The investment securities AFS portfolio was in a net unrealized loss position of $338.0 million at September 30, 2024, compared to a net unrealized loss position of $534.8 million at December 31, 2023, improving by $196.8 million during the nine months ended September 30, 2024. Net unrealized losses at September 30, 2024 included $19.2 million of gross unrealized gains and $357.2 million of gross unrealized losses. Investment securities available for sale in unrealized loss positions at September 30, 2024 had an aggregate fair value of $6.1 billion. The unrealized losses resulted primarily from a sustained period of higher interest rates, and in some cases, wider spreads compared to the levels at which securities were purchased. None of the unrealized losses were attributable to credit loss impairments.

Current wording

The investment securities AFS portfolio was in a net unrealized loss position of $338.0 million at March 31, 2025, an improvement of $67.6 million compared to a net unrealized loss position of $405.6 million at December 31, 2024. Net unrealized losses at March 31, 2025 included $16.5 million of gross unrealized gains and $354.5 million of gross unrealized losses. Investment securities available for sale in unrealized loss positions at March 31, 2025 had an aggregate fair value of $5.5 billion. The unrealized losses resulted primarily from a sustained period of higher interest rates, and in some cases, wider spreads compared to the levels at which securities were purchased. None of the unrealized losses were attributable to credit loss impairments.

Previous wording

While for some securities, we have seen an increase in stress scenario losses over the last year, the level of subordination continues to provide more than sufficient coverage of stress scenario collateral losses, further supporting our determination that none of our securities are credit loss impaired. The scenario used to project stress scenario losses is generally calibrated to the level of stress experienced in the Great Financial Crisis. For further discussion of our analysis of impaired investment securities AFS for credit loss impairment, see Note 3 to the consolidated financial statements.

Current wording

The high credit quality of these securities and adequacy of subordination to cover projected collateral losses supports the conclusion that there is no credit loss impairment. The scenario used to project stress scenario losses is generally calibrated to the level of stress experienced in the Great Financial Crisis. For further discussion of our analysis of impaired investment securities AFS for credit loss impairment, see Note 3 to the consolidated financial statements.

Previous wording

The majority of our investment securities are classified within level 2 of the fair value hierarchy. U.S. Treasury securities and marketable equity securities are classified within level 1 of the hierarchy.

Current wording

The majority of our investment securities are classified within level 2 of the fair value hierarchy. U.S. Treasury securities and marketable equity securities are classified within level 1 of the hierarchy. For additional disclosure related to the fair values of investment securities, see Note 8 to the consolidated financial statements.

Previous wording

The following table shows the weighted average prospective yields, categorized by scheduled maturity, for AFS investment securities as of September 30, 2024. Scheduled maturities have been adjusted for anticipated prepayments when applicable. Yields on tax-exempt securities have been calculated on a tax-equivalent basis, based on a federal income tax rate of 21%:

Current wording

The following table shows the weighted average prospective yields based on current rates, categorized by scheduled maturity, for AFS investment securities as of March 31, 2025. Scheduled maturities have been adjusted for anticipated prepayments when applicable. Yields on tax-exempt securities have been calculated on a tax-equivalent basis, based on a federal income tax rate of 21%:

Previous wording

The loan portfolio comprises the Company’s primary interest-earning asset. The following table shows the composition of the loan portfolio at the dates indicated (dollars in thousands):

Current wording

The following table shows the composition of the loan portfolio at the dates indicated (dollars in thousands):

Previous wording

Hurricane Milton made landfall near Siesta Key, Florida in October 2024, bringing heavy rain, hurricane or tropical storm force winds, storm surge and power outages to portions of the Florida peninsula. All of our branches and office locations have re-opened for business, and damage to our facilities from the storm was negligible. There were no significant impacts to banking operations. The Company had approximately $3.7 billion UPB, based on September 30, 2024 balances, of loans within a 34 county assessment area incorporating the direct path of Hurricane Milton and adjacent counties. Included in the $3.7 billion UPB of loans are approximately $200 million of residential loans, the substantial majority of which are government-insured and thus have zero expectation of credit losses. As of November 1, 2024, we have contacted the majority of borrowers with potential exposure in the commercial loan portfolio. No borrowers reported severe impact from the storm. In the commercial portfolio, borrowers representing approximately $122 million in UPB reported some impact on their properties or businesses. Of this, approximately $50 million reported mild or moderate impact, with the remaining $72 million reporting no damage. As of November 1, 2024, the Company had not received any requests for payment deferrals or other accommodations resulting from the storm. Although we are still in the process of finalizing our assessment, based on information collected to date, we do not expect the impact of the storm to be material to our financial condition, results of operations or to the ACL.

Current wording

The following charts present the distribution of the commercial loan portfolio at the dates indicated (dollars in millions):

Previous wording

Commercial real estate loans include term loans secured by non-owner occupied income producing properties including rental apartments, industrial properties, retail shopping centers, free-standing single-tenant buildings, medical and other office buildings, warehouse facilities, hotels, and real estate secured lines of credit. The Company’s commercial real estate underwriting standards most often provide for loan terms of five to seven years, with amortization schedules of no more than thirty years.

Current wording

Commercial real estate loans include term loans secured by non-owner occupied income producing properties including rental apartments, industrial properties, retail shopping centers, free-standing single-tenant buildings, medical and other office buildings, warehouse facilities, hotels, and real estate secured lines of credit. The Company’s commercial real estate underwriting standards most often provide for loan terms of five to seven years, with amortization schedules of no more than thirty years. Overall CRE exposure is modest in comparison to peer banks as presented in the charts below:

Previous wording

The following tables present the distribution of commercial real estate loans by property type, along with weighted average DSCRs and LTVs at September 30, 2024 (dollars in thousands):

Current wording

The following tables present the distribution of commercial real estate loans by property type, along with weighted average DSCRs and LTVs at the dates indicated (dollars in thousands):

Previous wording

Included in New York tri-state multifamily loans in the tables above is approximately $117 million of rent regulated exposure as of September 30, 2024.

Current wording

Included in New York tri-state multifamily loans in the tables above is approximately $113 million of rent regulated exposure as of March 31, 2025.