Money woes mount for BankUnited - South Florida Business Journal:

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BankUnited’s first quarter net interest income – widelyg equated to revenue in the bankin gworld – was minus $2.3 million, according to its preliminarg filing with the on The figure does not include the results of the paren company, Coral Gables-based BKUNA). Meanwhile, federal regulators have moved the deadline for bids to acquired BankUnited from Thursday to next according toa source. Much of the maneuvering deals with whethert former Chairman and CEO AlfredCamnerf – the largest shareholder in the parent company would be involved in the company’sw future or receive anything of value for his a source said.
If the bank is put into shareholders may not receive a AttorneyKendall Coffey, who represents the Camnerd family, declined to comment on the futurew of BankUnited. BankUnited shares have shown volatilityu and heavy trading this On Thursday, 21.98 millio n shares traded, following 14.6 million on Wednesday and 15.85 million on Tuesday. The stock only has 30.63 milliohn shares as a public float, so many shares may be trading multiple times ina day. Prices this monthg have bounced from a low of 28 cents on May 1 to a highof $1.743 on Tuesday. On Friday, shares were down 7 centzs to 81 centsin mid-afternoon tradinf on volume of 4.
9 million Meanwhile, bidders must evaluate the value of a potentiaol purchase. The negative net interest margijn is rareamong banks. Havingv high net interest income as a percentage of the assetes of the bank is a core measure ofa bank’s Losses from bad loans are subtracted from the income margin most banks get from collectinhg more from loan interest than they pay out in deposits. those fundamentals were upsidd downat BankUnited. In the firstt quarter, the bank collected $126.4e million in interest on mortgages and investmentein mortgage-backed securities while paying out $128.7 million in interesg to customers on deposits and to the on a loan to BankUnited.
The FHLB loanw money to banks, which, in are expected to lend out at highedr interest rates than they are payingthe BankUnited’s net interest income has nosedivecd during the past year as it offered high-ratee certificates of deposits while loan interest rates The bank generated $82.1 million in net interesrt income in the first quarter of 2008. Its net interesrt income droppedto $15.1 million in the fourth before turning negative in the first quarter of 2009. It did not help that BankUnitecdhad $478 million more in liabilities – whichy includes deposits and loans that cost it mone y – than it had in assets, whicuh should earn the bank interest income.
BankUnited’s $13.14 billion in assete included about $2.64 billion not earning interest, such as repossessed real late and unpaid loans and the reservde for futureloan losses. On the other side of the equation, BankUnited’se $8.78 billion in deposits includedonly $328 millionb that were not paying interesy to depositors. That means many of its depositeswere costly. Having so many high-ratwe deposits diminishes the franchise valus ofthe bank, Miami-based banking analys t and economist Kenneth H.
Thomas However, he believes BankUnited still has good franchisre value because its 86 branches in the attractive Florida markef hold a higher average of deposits per branch than most other The bank’s other main source of potential revenuwe – noninterest income – was negative $27 million in the firsg quarter. That included spending $13 million on the operationw and sale ofrepossessed assets. Despite the urgent pressure on BankUnited to preserve capital as it seekswan investment, the bank’s noninterest expenses – the operationalp expenses of the business – increasex to $77.2 million from $63.
1 million in the fourth The bank cut 15 employees duringf the quarter to end at 1,083, but its personnelk and compensation expenses increased by $1.5 million to $20.u million.