BankUnited's first-quarter 2014 earnings were well ahead of the
Zacks Consensus Estimate. Results benefited mainly from improvement
in revenues, partly mitigated by rise in operating expenses. While
consistent growth in loans and deposits were the highlights,
decline in capital ratios slightly dampened the results.
Nevertheless, the company is favorably positioned to grow both
organically and inorganically, aided by healthy liquidity levels.
Further, steady capital deployment activities and increasing
emphasis on the commercial loan portfolio will prove accretive to
its overall growth going forward. However, compressed net interest
margin, exposure to disadvantageous residential loans and
continuously rising non-interest expenses will likely weigh on its
financials in the near term.
Headquartered in Miami Lakes, FL, BankUnited Inc. was
established in May 2009, when a group of investors led by current
Chairman, President and Chief Executive Officer John A. Kanas
acquired the assets and most of the liabilities of the former
BankUnited, FSB from the Federal Deposit Insurance Corporation in a
transaction referred to as the FSB Acquisition. The group
recapitalized BankUnited with more than $900 million investment,
making it one of the well-capitalized financial institutions in the
As of Mar 31, 2014, BankUnited had 99 branches across 15 Florida
counties and 6 branches in the New York metropolitan area. The
company's distribution network also includes nearly 104 ATMs, fully
integrated online banking and a telephone banking service.
BankUnited operates as a bank holding company. The company
conducts operations through its 3 wholly owned subsidiaries
BankUnited, N.A, BankUnited Investment Services, Inc., and Herald
National Bank and provides various banking products and financial
services to commercial and middle-market businesses as well as
individual customers, primarily in the Florida region.
Products and services offered by BankUnited include checking
accounts, money market deposit accounts, savings accounts, and
certificates of deposit and a diversified loan portfolio. It also
provides wealth management products such as mutual funds,
annuities, life insurance and individual securities along with
succession planning, estate planning and financial planning
services to individuals as well as business owners.
In 2010, BankUnited acquired a small business commercial lending
company and a municipal leasing company for a total cash
consideration of approximately $50.5 million.
In 2012, BankUnited completed the acquisition of Herald National
Bank for a sum of $65.0 million. The acquisition of Herald National
has allowed the company to expand its banking operations in the New
York metropolitan area.
As of Mar 31, 2014, BankUnited had $15.8 billion in total
assets, $263.2 million in cash and cash equivalents, $9.9 billion
in total loans, $11.1 billion in total deposits and $2.0 billion in
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