The Office of Thrift Supervision has notified BankUnited Financial Corp. that its regulatory capital status was changed from "well capitalized" to "adequately capitalized."

The reclassification limits the bank's ability to raise and hold onto brokered deposits.

Last week, Stifel Nicolaus downgraded the stock to sell after BankUnited said regulators threatened to revoke its "well capitalized" status if it doesn't raise at least $400 million. Stifel noted that the bank had been attempting to raise capital for the past two months.

Banks are struggling with their worst crisis in a generation amid the deterioration of real-estate and credit markets nationwide.

BankUnited Financial Corp., based in Coral Gables, Fla., has been hit hard by losses in adjustable-rate mortgages. Last week, it said its $14 billion banking unit had entered into an agreement with the Office of Thrift Supervision over concerns about capital levels, among other things. The regulator is requiring the company to end its option adjustable-mortgage and alternative mortgage businesses.

In early August, BankUnited's board indefinitely suspended the quarterly dividend on the common stock.

BankUnited's shares fell 0.8% to $1.18 in after-hours trading. They have fallen about about 80% this year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.