BankUnited, Inc. (BKU): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


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 U.S.

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 stockholders' equity.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: BKU

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