Bank United in Miami Lakes, Fla., reported lower quarterly profit as declining yields offset a rapidly expanding loan portfolio.
The $17.7 billion-asset company's net income fell 1% from a year earlier, to $53.6 million. Earnings per share of 51 cents beat the average estimate of analysts polled by Bloomberg by 5 cents.
Net interest income increased 6%, to $173 million. Total loans increased by 42%, to $11.1 billion, but the net interest margin compressed by 112 basis points, to 4.58%.
Fee-based income rose 6%, to $14.5 million.
Operating expenses climbed 13% from the prior year, to $108.9 million, because of higher compensation costs.