BankUnited to buy Herald National to move into New York

Herald National, which has just three offices, focuses on relationship-based commercial and private banking -- the few bright spots in an industry struggling with low loan demand and even lower interest rates.

Tighter regulations written in the wake of the financial crisis make it harder for small banks to remain independent, and banks recapitalized by private-equity players are considered natural buyers as they look to expand in a fragmented market.

BankUnited was taken over by private investors like Wilbur Ross's WL Ross & Co, Blackstone Group LP and Carlyle Group during the financial crisis and its successful listing in January gives it the capital to go after smaller banks. 

BankUnited, which has 81 branches in 13 Florida counties, is widely viewed as a potential acquirer, and this acquisition gives it a toe-hold in the Northeast -- a market that held up better during the financial crisis than other regions.

Under the deal, BankUnited will pay about $22.9 million in cash and issue about 1.7 million shares to purchase Herald National.