BankUnited's third-quarter 2014 earnings surpassed the Zacks
Consensus Estimate. A sustainable rise in the top line, along with
a consistent improvement in loans and deposits, continued to be the
strengths, while escalating operating expenses and declining
capital and profitability ratios remained the undermining factors.
Nevertheless, the company possesses the potential to grow both
organically and inorganically, given its healthy liquidity levels.
Further, steady capital deployment activities and increasing
emphasis on the commercial loan portfolio will prove accretive to
the company's overall growth, going forward. However, compressed
net interest margin, exposure to risky residential loans and
mounting expenses will likely keep the financials under pressure 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 Sep 30, 2014, BankUnited had 101 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
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 Sep 30, 2014, BankUnited had $17.7 billion in total
assets, $348.1 million in cash and cash equivalents, $11.0 billion
in total loans, $12.8 billion in total deposits and $2.0 billion in
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