you said it all, mervini, this stock is poison unless GOOD news of an actual buyout comes. i'm not really expecting it now with today's news. i'm out, way too risky and i don't care what charts may say. i think this donkey is dead. for those of you still in, best wishes.
"Even if this TURD of a bank is bought outside of receivership....I wouldn't expect BKUNA to be valued at a very high price" *********************************************************
After reading this articial , I think you might be right. It sure keeps you wondering though???
********************************************************* BankUnited could use $1 billion South Florida Business Journal - by Brian Bandell
The capital hole for Florida’s largest bank keeps growing deeper as it searches for a buyer or investor.
Coral Gables-based BankUnited Financial Corp. would have needed about $1 billion in total risk-based capital to meet regulatory requirements at the end of March, the company said in a Securities and Exchange Commission filing. The filing on Tuesday gave preliminary results for the quarter, but they are subject to further revision.
The bank lost an estimated $443.1 million in the quarter ended March 31, which is the second fiscal quarter for BankUnited (NASDAQ: BKUNA).
The company made the filing to disclose that it would be late submitting its final second quarter report with the SEC.
BankUnited said its financial results from the quarter ended Sept. 30 onward are preliminary and could change based on additional accounting reviews. The company said it has a “material weakness” in its internal accounting controls.
BankUnited reiterated its warning that the Federal Deposit Insurance Corp. could place it into receivership. Regulators gave the bank until May 4 to strike a merger, acquisition or investment deal, and the company acknowledged that it hasn’t complied with that order.
Sources say three bidders are in talks with BankUnited and regulators about a deal for the bank: TD Bank with the assistance of Goldman Sachs; the combination of W.L. Ross, Carlyle Group and Blackstone Group; and a group involving the J.C. Flowers & Co. hedge fund.
However, some analysts believe BankUnited’s assets aren’t worth the $1 billion it would take to recapitalize the bank. If a buyer doesn’t pay the full amount, the federal government could chip in the rest through an investment or through FDIC receivership.
“It appears that management is doing everything possible to meet the terms of the outstanding regulatory agreements to facilitate an investment,” Miami-based banking analyst and economist Kenneth H. Thomas said. “The priority now is to get a resolution of this situation ASAP with as much private capital as possible.”
In its SEC filing, BankUnited noted that it has been trying to raise capital for more than a year.
“Although management continues to seek capital at the holding company level, our efforts at this time primarily relate to a direct recapitalization of the bank,” BankUnited stated in the filing. “No assurance can be given that we will be able to raise capital at either the bank or the holding company level. In addition, a recapitalization of the bank without a simultaneous recapitalization of the holding company would reduce or eliminate the company’s ownership in the bank, thus raising substantial doubt about the company’s ability to continue as a going concern.”
The bank reported that it has sufficient liquidity to meet depositors’ needs. Deposits at FDIC-insured banks are covered up to $250,000 per individual.
Despite all its challenges, BankUnited increased its total deposits to $8.7 billion as of March 31, up from $8.54 billion at year-end. The bank has advertised interest rates that are higher than most of its competitors.
BankUnited had $13.13 billion in assets and negative equity capital of $505.6 million on March 31, compared to $13.76 billion in assets and negative equity capital of $13.4 million on Dec. 31. That means its federally mandated capital ratios were also negative.
Its assets included nearly $5 billion in payment option adjustable-rate mortgages – a loan that allows borrowers to pay less than the accrued interest on the mortgage until the balance grows to a certain point. These loans are the main source of BankUnited’s troubles.
It was also hurt by downgraded investments in mortgage-backed securities.
The bank holding company’s $443.1 million preliminary loss in the quarter ended March 31 came after a $477.5 million preliminary loss in the previous quarter.
The bank’s losses in the most recent quarter came mostly from a $295.5 million expense to reserve for future loan losses and $231 million in charge-offs to bad loans.
BankUnited said it had $1.98 billion in nonperforming loans, representing 19.4 percent of its total loans, as of March 31. That’s up from $1.63 billion in nonperforming loans, or 15.1 percent of its total loans, at year-end.
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