UPDATE 1-BankUnited Financial posts Q2 loss
(Recasts; adds details)
May 12 (Reuters) - Bank holding company BankUnited Financial Corp BKUNA.O posted a wider-than-expected quarterly loss as the weak U.S. economy, deteriorating residential housing market and increased foreclosures sparked a near 25-fold spike in its provision for loan losses.
The company reported a second-quarter loss of $65.8 million, or $1.88 a share, compared with earnings of $24.4 million, or 64 cents a share, a year earlier.
Analysts on average expected a loss of 50 cents a share, before special items, according to Reuters Estimates.
"We believe it is prudent to maintain a loss reserve that reflects the ongoing deterioration of the housing markets and general economy. We may require future additional provisions as we work our way through this economic cycle," Chief Executive Alfred Camner said in a statement.
Provision for loan losses at the company, which is moving towards a more traditional retail commercial model, rose to $98.0 million in the quarter from $4.0 million a year earlier.
Net interest income fell 13 percent to $71.8 million.
The parent of BankUnited FSB, headquartered in Florida, said non-performing assets as a percentage of total assets rose to 4.75 percent at March 31, 2008, from 2.99 percent at Dec. 31, 2007, and 0.53 percent at March 31, 2007.
The company's shares, which have lost 83 percent of their value year-to-date, closed at $3.90 Friday on Nasdaq. (Reporting by Ratul Ray Chaudhuri in Bangalore; Editing by Pratish Narayanan)
