Why This Regional Bank Stock Drew a New $35.8 Million Investment
Key Points
Florida-based HoldCo Asset Management initiated a BankUnited stake in the third quarter, buying up 936,900 shares.
The value of the position was about $35.75 million at quarter-end.
The BKU position places outside the fund's top five holdings.
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Florida-based HoldCo Asset Management disclosed a new stake in BankUnited (NYSE:BKU), adding 936,900 shares valued at approximately $35.75 million, according to a November 13 SEC filing.
What Happened
In a filing with the Securities and Exchange Commission dated November 13, HoldCo Asset Management reported a new position in BankUnited (NYSE:BKU). The fund purchased 936,900 shares during the quarter, translating to a position valued at $35.75 million at quarter-end. This new holding accounts for 3.77% of its $947.56 million in reportable U.S. equity assets across 26 positions.
What Else to Know
Top holdings after the filing:
- NYSE:CMA: $156.94 million (16.6% of AUM)
- NASDAQ:COLB: $147.30 million (15.5% of AUM)
- NASDAQ:FIBK: $125.89 million (13.3% of AUM)
- NASDAQ:EBC: $116.32 million (12.3% of AUM)
- NYSE:CFG: $110.91 million (11.7% of AUM)
As of Thursday, shares of BankUnited were priced at $44.57, up about 17% over the past year and slightly outperforming the S&P 500's 16% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.07 billion |
| Net income (TTM) | $268.40 million |
| Dividend yield | 3% |
| Price (as of Thursday) | $44.57 |
Company Snapshot
- BankUnited offers a comprehensive suite of deposit products, commercial and consumer loans, and treasury management services, with a primary focus on commercial lending and deposit gathering.
- The bank serves commercial businesses, small and medium-sized enterprises, and individual consumers, with a geographic concentration in Florida and the New York metropolitan area.
- It leverages technology-enabled services to support growth and customer retention in its core markets.
BankUnited is a regional banking institution with a significant presence in Florida and the New York metropolitan area. The company leverages a diversified loan portfolio and a robust deposit base to drive stable earnings and maintain a competitive position among regional banks. Strategic emphasis on commercial banking and technology-enabled services supports consistent growth and customer retention in its core markets.
Foolish Take
Regional banks have spent the last year trading on fear, with the S&P Regional Banks Select Industry Index up less than 9% and lagging the broader market. Meanwhile, fundamentals have quietly stabilized, and BankUnited’s latest quarter showed what that stabilization can look like. Net income rose to $71.9 million, or $0.95 per share, while net interest margin expanded to a clean 3.00%, up from 2.93% the prior quarter. For the first nine months of the year, earnings reached $199.1 million, a 22% jump year over year, even as deposits stayed essentially flat and funding costs eased.
That profile fits neatly alongside the rest of the portfolio, which leans heavily toward traditional banks with scale, predictable balance sheets, and improving profitability rather than speculative growth. BankUnited also stands out in capital strength, ending the quarter with a 12.5% CET1 ratio and tangible book value rising 8% year over year to $39.27 per share.
Glossary
Stake: The amount of ownership or investment a fund holds in a particular company.
13F reportable assets: U.S. equity holdings that institutional investment managers must disclose quarterly to the SEC on Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
Top holdings: The largest investments in a fund's portfolio, typically ranked by market value.
Quarter-end: The last day of a company's fiscal quarter, used as a reference point for financial reporting.
Dividend yield: The annual dividend payment divided by the share price, shown as a percentage.
Deposit products: Financial accounts offered by banks, such as savings, checking, and certificates of deposit.
Treasury management services: Banking services that help businesses manage cash flow, payments, and financial risk.
Loan portfolio: The collection of loans a bank has issued to its customers.
Commercial lending: Loans provided by banks to businesses rather than individual consumers.
Reportable U.S. equity assets: U.S. stock investments that must be disclosed in regulatory filings.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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