BankUnited(US:BKU)2023-02-21 16:00Financial Performance - BankUnited, Inc. reported total consolidated assets of $37.0 billion as of December 31, 2022[21]. - The company reported a comprehensive loss of $(501,770) thousand for the year ended December 31, 2022[220]. - The provision for income taxes for the year ended December 31, 2022, was $90.161 million, representing an effective tax rate of 24.03%[149]. - The company recorded a tax benefit of $43.9 million during the year ended December 31, 2021, related to a settlement with the Florida Department of Revenue[153]. Loan Portfolio - As of December 31, 2022, the total loan portfolio amounted to $24.89 billion, an increase of $1.1 billion from the previous year[62]. - The commercial loan portfolio's amortized cost was $15,985,274,000, with 95.4% classified as pass loans, reflecting an improvement from 90.5% in 2021[124]. - Residential and other consumer loans grew by $532 million for the year ended December 31, 2022, reaching a total of $8.90 billion[63]. - The loan portfolio composition shows non-owner occupied commercial real estate at $5.41 billion, representing 21.7% of the total[62]. - The company does not originate residential mortgages but invests in residential loans through correspondent channels, diversifying its loan portfolio[23]. Credit Quality - Non-performing loans totaled $105.019 million as of December 31, 2022, down from $205.909 million in 2021, indicating a reduction of approximately 49%[136]. - The ratio of non-performing loans to total loans decreased to 0.42% at December 31, 2022, compared to 0.87% in the previous year[136]. - The allowance for credit losses was $147.95 million as of December 31, 2022, compared to $126.46 million the previous year[62]. - The allowance for credit losses (ACL) increased to $147.946 million as of December 31, 2022, from $126.457 million in 2021, representing a growth of 17%[196]. Investment Securities - The investment securities available for sale portfolio had a net unrealized loss of $674.2 million at December 31, 2022, compared to a net unrealized gain of $3.8 million at December 31, 2021[51]. - The company reported unrealized losses on investment securities available for sale of $(674,115) thousand for the year ended December 31, 2022[178]. - The balance of unrealized gain (loss) on investment securities available for sale was $(498,911) thousand as of December 31, 2022[220]. Deposits and Funding - BankUnited's deposit growth strategy is focused on small business and middle-market companies, with demand deposit balances concentrated in commercial and small business accounts[35]. - Average balances for demand deposits in 2022 were $27,612,928 thousand, with an average interest rate of 0.65%[95]. - Time deposits with balances greater than $250,000 totaled $730 million at December 31, 2022, up from $603 million in 2021[95]. - Interest expense on deposits for 2022 was $179,972 thousand, significantly higher than $67,596 thousand in 2021, indicating a substantial increase in deposit costs[99]. Risk Management - The company regularly engages with bond managers to monitor trends in underlying collateral and potential downgrades[55]. - The company has implemented loss mitigation strategies for residential loans in default, including modifications and short sales[188]. - The company utilizes a 16-grade internal asset risk classification system to monitor and maintain commercial asset quality[123]. Community Engagement - The company is actively involved in community initiatives such as the "Adopt A Neighborhood" program and the "Entrepreneurship Initiative" to support under-served communities[77]. Future Outlook - The company launched a wholesale banking office in Atlanta in 2022 and plans to open a full-service branch in Dallas, Texas, in 2023, indicating future growth opportunities[36]. - The economic forecast used for estimating the ACL included a projected national unemployment rate of 3.8% for Q1 2023, increasing to 4.2% by the end of 2023[205].