BankUnited Inc (NYSE:BKU) Q2 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 09:00 am ET
Leslie N. Lunak
COVID, and there was also just lower volume of activity in some fee areas this quarter, which we believe was related to the pandemic as well. Employee compensation and benefits decreased by $10 million compared to the immediately preceding quarter. Some of that is seasonal payroll taxes, 401(k) contributions and HSA seating are always elevated in the first quarter. And additionally, variable compensation costs were lower this quarter, reflective of lower levels of production and earnings resulting from the pandemic. Probably a more valid comparison because there's a lot of quarter-over-quarter noise is the six months ended June 30, 2020, compared to the prior year, where we saw comp and benefits decrease by $14.7 million. We're really starting to see here the impact of all of our BankUnited 2.0 expense initiatives.
Noninterest expense for the quarter does include $1.5 million of costs related directly to the pandemic. That could be everything from equipment to facilitate people working from home, to some costs we incurred, standing up our PPP program, supplies, equipping branches, things like that. There will probably be a little bit more of this to come. Our expectation is that operating expenses will be relatively flat for Q3 compared to Q2.
And with that, I'm going to turn it over to Raj for some closing comments.
Rajinder P. Singh
Thank you, Leslie. The problem with transparency and providing you a lot of information is that these calls take forever. So sorry for taking so much of your time, but we'll open it up for Q&A.