Interest Income Fueled BankUnited as It Entered NYC

By Chris Cumming April 24, 2013, 1:02 p.m. EDT 1 Min Read

Community banking

Kanas to Cap One: Herald Deal Does Not Violate Noncompete Agreement

John Kanas released a statement on Tuesday re-asserting that BankUnited Inc.'s planned acquisition of Herald National Bank jibes with his noncompete provisions with Capital One Bank.

By Robert Barba

July 19
M&A

Iberiabank Charge Shows Challenge of Failed-Bank Deals

When Iberiabank lowered the amount of money it expects to receive in FDIC loss-sharing, it meant some credits are performing better than expected — and that some losses might show up after the FDIC agreement runs out.

By Robert Barba

April 15
M&A

Did BankUnited Break the Private Equity Logjam?

Three years after a group of private equity firms bought BankUnited out of receivership, industry observers wonder if the deal really paved the way for other firms interested in consolidating banks.

By Robert Barba

May 30
M&A

BankUnited's Kanas Regathers Old Capital One Gang in New York

BankUnited, the Florida bank led by John Kanas, has hired two of his former colleagues at Capital One — Joe Roberto and Kelly Sheehan — to run its nascent operation in the Big Apple.

By Chris Cumming

March 19
Community banking

BankUnited Pursues Bold Hiring Push in New York

CEO John Kanas is letting rivals know in advance that he's coming to New York — and that he's targeting their employees.

By Andy Peters

February 13

BankUnited (BKU) in Miami Lakes, Fla., reported solid growth in interest income as it began its expansion into the New York City market.

The $12.7 billion-asset company announced Wednesday a first-quarter profit of $48.2 million, 4% lower than the first quarter of 2012, when it recorded a $5.3 million one-time gain related to its acquisition of Herald National Bank. Per-share earnings of 47 cents beat Bloomberg analysts' expectations by 2 cents.

But net interest income rose 12%, to $153.8 million, thanks to an increase in lending and a decrease in borrowing costs. Net interest margin declined by 16 basis points but remained relatively high, at 5.93%.

Noninterest income fell 51%, to $17.8 million, as the company recorded charges tied to its loss-share agreements on certain loans with the Federal Deposit Insurance Corp. Private investors created BankUnited through the purchase of a failed thrift, and the FDIC had agreed to share in the losses on the loans. Repayments of those loans have been stronger than expected, prompting BankUnited to record an $11.7 million reduction in the money it expects to receive from the FDIC and a $2.3 million charge related to amortization of the loans.

These charges were partly offset by a nearly $12 million increase in income from the loans, to $19.2 million, and a 9% rise in fee and service-charge income, to $3.3 million.

BankUnited's provision for loan losses rose 37%, to $12 million, and chargeoffs increased to $11.1 million, more than $9 million higher than the first quarter of 2012.

Noninterest expense fell 4%, to $80.5 million, as foreclosure expense fell 81%, to $505,000.

BankUnited began its push into the New York City market in the first quarter, opening branches in Manhattan and on Long Island in March. It opened a second Manhattan branch on April 15 and expects to open a third later in the month.

Last month, Chairman and Chief Executive John Kanas hired two former Capital One Financial (COF) executives to head BankUnited's New York operations. Kanas announced in February plans to hire up to 100 New York employees.

Chris Cumming