Profit improved at BankUnited in Miami Lakes, Fla., during the third quarter, despite the impact of Hurricane Irma and continued weakness in taxi medallion lending.
Net income at the $30 billion-asset company rose 33% to $67.8 million from a year earlier. Earnings per share of 62 cents came in 3 cents higher than the mean estimate of analysts compiled by FactSet Research Systems.
Net interest income after the loan-loss provision rose 3% to $203 million. The provision climbed 55% to $38 million; about $32 million of the provision was tied to BankUnited’s taxi medallion loan portfolio. BankUnited placed its entire $160 million taxi medallion loan portfolio on nonaccrual status during the third quarter.
BankUnited also recorded $35.3 million in net chargeoffs on taxi loans, up from $2.6 million a year ago.
BankUnited added $5.4 million to its allowance for loan and lease losses to account for the impact of Hurricane Irma during the quarter.
“Our analysis of the ultimate impact of the hurricanes on the level of loans losses is ongoing, but we do not expect the ultimate impact of these storms on our operations or financial condition to be material,” the company said in a news release.
Average total loans increased 9% to $20.2 billion. The average yield on those loans rose 12 basis points to 5.15%.
Noninterest income more than doubled to $53 million. The total included about $26 million in gains on the sale of investment securities available for sale.
Noninterest expenses climbed 6% to $157 million on higher amortization of the FDIC indemnification asset and employee benefits and salaries.