BankUnited in Miami Lakes, Fla., posted higher quarterly earnings as increased revenue offset higher expenses and ongoing issues in its taxi medallion lending operations.
The $28 billion-asset company said in a press release Tuesday that its first-quarter profit rose 13.5% from a year earlier to $62.3 million. Earnings per share of 57 cents topped the average estimate of analysts compiled by FactSet Research Systems.
Net interest income increased 11.4% to $231 million. Average loans increased by 16% to $19.3 billion, while the net interest margin narrowed by 13 basis points to 3.70%.
The loan-loss provision more than tripled to $12.1 million.
BankUnited said about three-fourths of the provision was tied to its taxi medallion lending business. The company said it had $59.4 million in nonperforming taxi medallion loans at March 31, a slight decrease from Dec. 31.
Noninterest income rose 21% to $28 million. The quarter included a $4.6 million gain on the sale of loans and higher lease financing income.
Noninterest expense increased 10% to $156.6 million. Employee compensation and benefits rose by 8%, to $60 million, while professional fees more than doubled to $5 million.