This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Well-Run, Profitable Banks (Update 3)

9. BankUnited

Shares of BankUnited (BKU - Get Report) of Miami Lakes, Fla., closed at $21.99 Friday, for a negative return of 17% since the "new" BankUnited was taken public on January 27 of last year. Based on a quarterly payout of 14 cents, the shares have a dividend yield of 2.55%.

The "new" BankUnited was formed in May 2009 by an investor group led by former NorthFork Bancorp CEO John Kanas, to acquire the failed "old" BankUnited from the FDIC.

The company's third-quarter efficiency ratio was 41.64, according to SNL Financial.

BankUnited in June announced a deal to acquire Herald National Bank (HNB) of New York, in a deal valued at $71.4 million by SNL. Herald National's shareholders approved the deal on Dec. 22, and the transaction is expected to be completed during the first quarter.

Herald National Bank has three branches and reported $487 million in total assets as of Sept. 30. While this is a small deal for BankUnited, it provides an entry back into the New York market for Kanas, and BankUnited has loads of excess capital to fund a significant expansion in the New York area.

BankUnited earned $45.6 million during the third quarter, or 45 cents a share, compared to $45.0 million, or 48 cents a share, a year earlier.

The third-quarter ROA was 1.68%, according to SNL.

Bank of America Merrill Lynch analyst L. Erika Penala rates BankUnited a buy, with a $30 price objective, saying in October that the company remained "a long-term growth story, with anticipated outsized growth in metro New York representing the crux of our bullish stance." Penala estimates that BankUnited will earn $1.74 a share in 2012.

The shares trade for 14 times the consensus 2012 EPS estimate of $1.59, among analysts polled by FactSet, and for 1.5 times their Sept. 30 tangible book value of 14.72, according to SNL Financial.

The six analysts covering BankUnited are split between buy ratings and neutral ratings.

Interested in more on BankUnited? See TheStreet Ratings' report card for this stock.

3 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BKU $33.83 -0.21%
HCBK $9.60 0.52%
ORIT $14.95 1.15%
PB $53.80 0.41%
SBNY $141.37 0.12%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs