HOUSTON - Bank United of Texas reported net income of $14.8 million for the quarter ended June 30, down 73% from the $55.4 million earned in the same period a year ago.
The Houston-based thrift said the decline was due primarily to nonrecurring tax benefits derived from an accounting rule applied in 1994.
Bank United earned $45.4 million for the first nine months of 1995 versus $113.2 million for the comparable period last year.
However, operating earnings of $25.4 million for the quarter ended June 30 represented a 22% gain over the year-earlier period. Year-to-date operating earnings were $78.8 million compared with $71.9 million for last year's comparable period.
While improved, operating results were affected by the impact of rapidly rising interest rates on the portfolio of adjustable-rate mortgages, Bank United said. This was offset by an increase in interest earning assets, including newly acquired single-family loans and increases in construction lending.
The bank said increased fee income from a larger servicing portfolio partially offset a reduction in mortgage loan production caused by last year's higher interest rate environment. The bank increased its servicing portfolio 42% over the year-earlier quarter, to $12.4 billion.
Deposits increased 9%, to $5.1 billion, and total assets were up 32%, to $11.3 billion.
Bank United's total stockholder equity increased to $683 million at June 30 from $637 million at the same time last year.