The Real Deal Miami

BankUnited Financial struggles

August 11, 2008 11:43AM

The need to set money aside for bad loans pushed BankUnited Financial, the parent company of Coral Gables-based BankUnited, to a loss of $3.35 per share for the quarter that ended June 30, compared to a $23.2 million profit, or 62 cents per share, for the same quarter a year ago. The loss was worse than Wall Street estimates of 98 cents per share. The bank had to set aside $130 million for bad loans, and also announced a new plan to allow customers to convert hybrid adjustable-rate mortgages into more traditional home loans. It now has $309 million in reserve for future possible loan defaults.