In an effort to further enhance its growth, Miami Lakes-based
) opened four new branches in Florida during the month of
December. With these branch openings, the bank's total number of
branches - operating in 15 counties in the state of Florida -
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Two of the four new branches were opened in Miami during early
December. Subsequent to this, the other two branches were opened
in Jupiter and Lighthouse Point, respectively. Further,
BankUnited has embarked on arrangements for opening branches in
Fort Lauderdale, Hialeah, Pompano Beach, Altamonte Springs and
Sarasota in the upcoming year.
These branch openings are strategically fit for the company and
it is anticipating to gain further from the economic improvement
at Florida, which is recovering rapidly. For the nine months
ended September 30, 2012, BankUnited's annual growth rate in
total demand deposits was 55%. Further, new loans grew by an
overwhelming growth rate of 121% on an annualized basis, during
the same period.
Total revenue at BankUnited in the third quarter of 2012 was
$196.0 million, marginally up from $195.9 million in the year-ago
quarter. In the same quarter, non-interest expense was $77.2
million, down 3.2% from $79.8 million in the year-ago quarter.
We believe that BankUnited's organic growth will be boosted with
its decision to open new branches. Moreover, we are quite
impressed with the company's decent top-line growth as well as
continuously falling operating expenses.
Nevertheless, we are concerned about the impact of the prevailing
low interest rate environment, sluggish economic growth and
stringent regulatory landscape on the company's financials in the
BankUnited currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. In the same sector,
) also retains a Zacks #3 Rank.