BankUnited in Miami Lakes, Fla., has received approval from the Federal Deposit Insurance Corp. to sell a portfolio of covered loans.
The $31.5 billion-asset BankUnited disclosed in a regulatory filing Friday that it received approval to sell certain loans and other real estate owned with an unpaid balance of $263 million at Sept. 30. BankUnited did not disclose the name of the entity buying the loans.
The loans have been covered by a loss-share agreement that goes back to when an investor group bought the failed BankUnited in May 2009.
BankUnited said it plans to sell the loans by the end of this year.
The company said it plans to retain about $421 million in loans associated with the loss-share agreement, which is expected to terminate on May 21.
The accelerated timing of the sale will result in increased amortization of the FDIC indemnification asset of about $117 million in the fourth quarter, the company said. It will also lower the balance of the indemnification asset to zero or near zero.
BankUnited said that, based on its most recent cash flow estimates, the sale should result in $114 million of accretion income in the fourth quarter. Estimated accretion on the retained loans to be recognized after the fourth quarter, over the expected lives of the loans, is roughly $302 million.
