BankUnited (BKU) in Miami Lakes, Fla., added interest income and beat earnings estimates as it expanded into New York City last quarter.
The $13.2 billion-asset company reported Wednesday second-quarter profit of $54 million, up 12% from the second quarter of 2012. Per-share earnings of 52 cents were 9 cents higher than the average estimates of analysts polled by Bloomberg.
Net interest income rose 13%, to $159.2 million, as net interest margin widened by 22 basis points, to 6.14%.
Noninterest income dropped to $6.1 million, a decline of $15.6 million. The main culprit was a $17.7 million charge to amortize assets covered by loss-share agreements with the Federal Deposit Insurance Corp.
Provision for loan losses rose79%, to $4.9 million, and BankUnited recovered $745,000 worth of loans, after recording net chargeoffs of $3.6 million in the second quarter of 2012.
Noninterest expense fell by 6%, to $78.3 million, as foreclosure expense fell and the bank recorded higher gains on real estate sales. Compensation costs fell slightly, despite BankUnited's hiring push in New York City.