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Loan-loss provisions are trending up, partly due to an increase in overall lending but also because lenders are concerned about future losses on loans tied to the energy and manufacturing sectors.
October 20 -
Signature Bank in New York reported higher profit in the third quarter, as loan growth offset issues in its taxi medallion portfolio.
October 20 -
BankUnited in Miami Lakes, Fla., will book a $50 million income-tax benefit in the third quarter.
September 17
Profits at BankUnited in Miami Lakes, Fla., nearly doubled thanks to loan growth and an income-tax benefit.
The $22.5 billion-asset company reported third-quarter net income of $102.3 million, compared with $54 million a year earlier. It earned 95 cents per share in the latest quarter, short of the consensus estimate of 97 cents from analysts polled by Bloomberg.
Excluding a $49.3 million tax benefit, which BankUnited had previously announced, net income would have been $53.8 million, or 50 cents per share, two cents better than the adjusted estimate from Bloomberg.
Net interest income rose 2% from a year earlier, to $171 million. Total loans rose 24%, to $15.4 billion, but the net interest margin compressed by 70 basis points, to 3.88%.
The loan-loss provision more than tripled, to $17.8 million. Roughly 94% of the quarter’s provision was tied to loan growth, BankUnited said.
Noninterest income more than doubled, to $31.2 million, largely because of gains on the sale of loans and an increase in lease financing.
Noninterest expense rose by 21%, to $132.3 million, because of higher employee compensation and the amortization of an indemnification asset.
