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.
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Corrected October 22, 2015 at 8:43AM: This story has been updated to include BankUnited's adjusted third-quarter earnings per share as well as the unadjusted figure.