BRIDGEPORT, Conn., Jan. 17 /PRNewswire-FirstCall/ -- People's United
Financial, Inc. (Nasdaq: PBCT) today announced net income of $46.0 million,
or $0.16 per share, for the fourth quarter of 2007, compared to $39.3
million, or $0.13 per share, for the fourth quarter of 2006. As previously
reported, People's United Financial completed its acquisition of Chittenden
Corporation on January 1, 2008. Accordingly, People's United Financial's
fourth quarter and full-year 2007 results do not include the results of
Chittenden Corporation.
For the year ended December 31, 2007, net income totaled $150.7
million, or $0.52 per share, compared to $124.0 million, or $0.41 per
share, for 2006. Included in this year's results is the $60 million
contribution to the People's United Community Foundation, which had the
effect of reducing net income in 2007 by $39.6 million, or $0.13 per share.
Results for 2006 included net security losses ($27.4 million) related to
significant balance sheet restructuring activities and an income tax
benefit related to certain prior- year tax matters ($2.4 million). The net
impact of these items reduced net income in 2006 by $15.8 million, or $0.05
per share. Excluding the effect of these items from the respective year's
results, earnings would have been $190.3 million, or $0.65 per share, in
2007, compared to $139.8 million, or $0.46 per share, in 2006.
For the fourth quarter of 2007, return on average assets was 1.37
percent and return on average stockholders' equity was 4.1 percent,
compared to 1.49 percent and 11.6 percent, respectively, for the year-ago
quarter.
The Board of Directors of People's United Financial declared a $0.1333
per share quarterly dividend, payable February 15, 2008 to shareholders of
record on February 1, 2008. Based on the closing stock price on January 16,
2008, the dividend yield on People's United Financial common stock is 3.3
percent.
Acting President and Chief Executive Officer, Philip R. Sherringham
stated, "2007 was a year of significant change for the company. The
successful completion of our second-step conversion in April, the
rebranding of the Bank and the announcement of our agreement to acquire
Chittenden Corporation transformed the company and positioned us as the
premier New England-based regional banking company."
Sherringham continued, "With the addition of the six Chittenden banks,
we now have over $21 billion in total assets, more than 300 branches and
seven banks across six states. Our near-term priorities remain the
successful integration of Chittenden while maintaining our focus on
financial performance and the judicious management of our significant
excess capital position. Our performance in the fourth quarter continues to
reflect the benefits of our focused commercial and consumer banking
strategy. Our strong asset quality is particularly noteworthy in today's
environment.
"Our average commercial banking loan portfolio increased $322 million,
or 8 percent, since the fourth quarter of 2006, including a $168 million,
or 22 percent, increase in our equipment financing portfolio," noted
Sherringham. "Our shared national credits portfolio totaled $738 million at
December 31, 2007, a $161 million, or 28 percent, increase from year-end
2006. In light of the recent geographic expansion of the company's
franchise and the resulting increased diversification of its commercial
banking loan portfolio, the need for us to maintain a shared national
credits portfolio has significantly diminished. As a result, we have made
the decision to unwind this portfolio in an orderly manner over the next
two to three years. I want to point out that our shared national credits
portfolio, which was built up from a very low base to its current balance
has performed, and continues to perform, exceptionally well.
"Key drivers of the company's performance in the fourth quarter were
the net interest margin and ongoing strong asset quality," said
Sherringham. "As previously disclosed, some margin compression was expected
this quarter given the asset sensitive position of our balance sheet. The
net interest margin was flat compared to the fourth quarter of last year
and down from the third quarter of 2007 as the benefits from investing the
net proceeds from our second-step conversion in April and the balance sheet
restructuring activities completed during 2006 were essentially offset by
declining interest rates.
"In addition, our balance sheet continues to be funded by core deposits
and stockholders' equity," added Sherringham. "Given the many challenges of
today's environment, the strength of our capital, liquidity, asset quality
and earnings clearly sets us apart from most in the industry."
Sherringham continued, "Average earning assets increased $2.9 billion
on a year-over-year basis, reflecting a $3.4 billion increase in average
short-term investments as a result of the second-step conversion, while
average loans decreased $377 million, or 4 percent, and average securities
declined $102 million, or 62 percent. While average commercial banking
loans increased 8 percent on a year-over-year basis, average residential
mortgage loans actually declined 16 percent as a result of our decision in
the fourth quarter of 2006 to sell all newly-originated residential
mortgage loans."
Commenting on asset quality, Sherringham stated, "As we have said many
times in the past, our loan portfolio has absolutely no sub-prime, Alt-A or
SIV exposure. Our asset quality remains very strong. Fourth quarter net
loan charge-offs included a $2.3 million charge-off related to one
commercial banking loan that had been classified as non-performing since
December 2006. That one commercial loan, a portion of which had also been
charged off in the second quarter of 2007, single-handedly accounted for
two-thirds of the $9.3 million in net loan charge-offs for 2007. Net loan
charge-offs totaled $3.7 million for the fourth quarter of 2007, compared
to $1.4 million in the year- ago quarter. Net loan charge-offs as a percent
of average loans on an annualized basis were 0.17 percent in the fourth
quarter of 2007, compared to 0.06 percent in the fourth quarter of last
year. For the full year, net loan charge-offs as a percent of average loans
equaled 0.10 percent in 2007, compared to 0.05 percent in 2006."
At December 31, 2007, non-performing assets totaled $26.1 million, a
$0.1 million decrease from September 30, 2007. Non-performing assets
equaled 0.29 percent of total loans, REO and repossessed assets, unchanged
from September 30, 2007. The allowance for loan losses as a percentage of
non-performing loans was 358 percent at December 31, 2007, compared to 318
percent at September 30, 2007. The allowance for loan losses as a
percentage of total loans was 0.81 percent at December 31, 2007, compared
to 0.82 percent at September 30, 2007.
Conference Call
On January 18, 2008, at 11 a.m., Eastern Time, People's United
Financial will host a conference call to discuss this earnings
announcement. The call may be heard through http://www.peoples.com by selecting
"Investor Relations" in the "About People's" section on the home page, and
then selecting "Conference Calls" in the "News and Events" section.
Additional materials relating to the call may also be accessed at People's
United Bank's Web site. The call will be archived on the Web site and
available for approximately 90 days.
Selected Financial Terms
In addition to evaluating People's United Financial's results of
operations in accordance with generally accepted accounting principles
("GAAP"), management routinely supplements this evaluation with an analysis
of certain non-GAAP financial measures, such as core deposits, purchased
funds and the efficiency ratio. Management believes these non-GAAP
financial measures provide information useful to investors in understanding
People's United Financial's underlying operating performance and trends,
and facilitates comparisons with the performance of other banks and
thrifts.
Core deposits is a measure of stable funding sources and is defined as
total deposits, other than brokered certificates of deposit (acquired in
the wholesale market), municipal deposits (which are seasonally variable by
nature) and escrow funds from People's United Financial's stock offering.
Purchased funds include borrowings, brokered certificates of deposit and
municipal deposits.
The efficiency ratio, which represents an approximate measure of the
cost required by People's United Financial to generate a dollar of revenue,
is the ratio of total non-interest expense (excluding goodwill impairment
charges, amortization of acquisition-related intangibles, losses on real
estate assets and nonrecurring expenses) to net interest income plus total
non-interest income (including the fully taxable equivalent adjustment on
bank-owned life insurance income, and excluding gains and losses on sales
of assets, other than residential mortgage loans, and nonrecurring income).
People's United Financial generally considers an income or expense to be
nonrecurring if it is not similar to an income or expense of a type
incurred within the last two years and is not similar to an income or
expense of a type reasonably expected to be incurred within the following
two years. Management considers the efficiency ratio to be more
representative of People's United Financial's ongoing operating efficiency,
as the excluded items are generally related to external market conditions
and non-routine transactions.
4Q Financial Highlights (4Q 2007 compared with 4Q 2006 unless otherwise
indicated)
Summary
-- Net income totaled $46.0 million, or $0.16 per share.
-- Net interest income increased $28.9 million, or 30%.
-- Reflects the investment of $3.3 billion in net proceeds from the
second-step conversion.
-- Net interest margin of 4.01% unchanged from 4Q06 and 27 basis points
lower than 3Q07.
-- Provision for loan losses increased $1.5 million.
-- Net loan charge-offs in 4Q07 totaled $3.7 million (which included a
$2.3 million charge-off related to one commercial banking loan)
compared to $1.4 million in 4Q06.
-- The allowance for loan losses was reduced by $0.8 million in 4Q07
from 3Q07 levels.
-- Non-interest income increased $0.8 million, or 2%.
-- Non-interest expense increased $14.4 million, or 17%.
-- Compensation and benefits increased $6.9 million (4Q07 included $4.0
million of amortization expense related to new stock incentive plans
and the employee stock ownership plan).
-- Occupancy and equipment increased $1.7 million, reflecting higher
rent and utility expenses.
-- Professional and outside service fees increased $2.0 million
primarily due to higher costs for information technology-related
projects.
-- Other non-interest expense increased $3.8 million.
Commercial Banking
-- Average commercial banking loans grew $322 million, or 8%.
-- Average commercial non-interest-bearing deposits totaled $876 million.
-- Non-performing commercial banking assets totaled $13.7 million, a $0.6
million decrease.
-- The ratio of non-performing commercial banking loans to total
commercial banking loans was 0.18% at December 31, 2007, compared to
0.32% at September 30, 2007 and 0.34% at December 31, 2006.
-- Net loan charge-offs totaled $3.1 million, or 0.29% annualized, of
average commercial banking loans.
Consumer Financial Services
-- Average residential mortgage loans decreased $630 million, or 16%.
-- Average consumer non-interest-bearing deposits totaled $1.1 billion.
Treasury
-- Average securities declined $102 million, or 62%.
-- Average securities made up 1% of average earning assets compared to 2%
in 4Q06.
-- Average short-term investments increased $3.4 billion, reflecting the
investment of the net proceeds from the second-step conversion.
People's United Financial, a diversified financial services company
with $21 billion in assets, provides consumer and commercial banking
services through a network of more than 300 branches in Connecticut,
Massachusetts, Vermont, New Hampshire, Maine and New York. Through its
subsidiaries, People's United Financial provides equipment financing, asset
management, brokerage and financial advisory services, and insurance
services.
Certain statements contained in this release are forward-looking in
nature. These include all statements about People's United Financial's
plans, objectives, expectations and other statements that are not
historical facts, and usually use words such as "expect," "anticipate,"
"believe" and similar expressions. Such statements represent management's
current beliefs, based upon information available at the time the
statements are made, with regard to the matters addressed. All
forward-looking statements are subject to risks and uncertainties that
could cause People's United Financial's actual results or financial
condition to differ materially from those expressed in or implied by such
statements. Factors of particular importance to People's United Financial
include, but are not limited to: (1) changes in general, national or
regional economic conditions; (2) changes in interest rates; (3) changes in
loan default and charge-off rates; (4) changes in deposit levels; (5)
changes in levels of income and expense in non-interest income and expense
related activities; (6) residential mortgage and secondary market activity;
(7) changes in accounting and regulatory guidance applicable to banks; (8)
price levels and conditions in the public securities markets generally; (9)
competition and its effect on pricing, spending, third-party relationships
and revenues; and (10) the successful integration of Chittenden
Corporation. People's United Financial does not undertake any obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Access Information About People's United Financial on the World Wide Web at
http://www.peoples.com.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS
Three Months Ended
Dec. Sept. June March Dec.
(dollars in millions, except 31, 30, 30, 31, 31,
per share data) 2007 2007 2007 2007 2006
Operating Data:
Net interest income $125.0 $134.3 $132.0 $95.3 $96.1
Provision for loan losses 2.9 2.5 1.8 0.8 1.4
Fee-based revenues 39.4 38.7 38.5 37.8 39.5
Net security gains - 5.5 - - -
All other non-interest income 6.7 6.0 7.0 5.8 5.8
Non-interest expense (1) 100.0 95.5 155.7 88.1 85.6
Income from continuing
operations 45.7 57.3 13.1 33.1 38.7
Income from discontinued
operations 0.3 0.3 0.4 0.5 0.6
Net income 46.0 57.6 13.5 33.6 39.3
Selected Statistical Data:
Net interest margin (2) 4.01% 4.28% 4.23% 3.94% 4.01%
Return on average assets (2) 1.37 1.70 0.40 1.27 1.49
Return on average stockholders'
equity (2) 4.1 5.1 1.4 10.0 11.6
Efficiency ratio 57.4 52.8 53.3 62.6 59.7
Per Common Share Data: (3)
Diluted earnings per share $0.16 $0.20 $0.05 $0.11 $0.13
Dividends paid per share 0.13 0.13 0.13 0.12 0.12
Dividend payout ratio (4) 83.2% 67.2% 286.4% 46.1% 39.3%
Book value (end of period) $15.43 $15.59 $15.50 $4.55 $4.49
Tangible book value (end of
period) 15.07 15.23 15.14 4.20 4.14
Stock price:
High 18.60 18.62 21.38 22.81 21.62
Low 15.83 14.78 17.56 19.78 18.69
Close (end of period) 17.80 17.28 17.73 21.14 21.25
Average diluted shares
outstanding (in millions) (5) 286.60 290.84 292.38 299.26 299.20
(1) Includes a $60.0 million contribution to the People's United
Community Foundation for the three months ended June 30, 2007.
Without the contribution, non-interest expense would have been $95.7
million for that period.
(2) Annualized.
(3) Common share data has been adjusted (except dividend payout ratio) to
reflect the exchange of shares of People's United Bank common stock
for 2.1 shares of People's United Financial, Inc. common stock upon
completing the second-step conversion.
(4) Dividend payout ratio for the three months ended March 31, 2007 and
December 31, 2006 reflects the waiver of dividends on the substantial
majority of the common shares owned by People's Mutual Holdings prior
to completing the second-step conversion in April 2007.
(5) The decreases from March 31, 2007 reflect the purchase of 10.5
million shares of common stock during April 2007 in connection with
establishing People's United Financial's employee stock ownership
plan and the purchase of 7.0 million shares of common stock during
October 2007 in connection with establishing a new stock incentive
plan.
Twelve Months Ended
(dollars in millions, except Dec. 31, Dec. 31,
per share data) 2007 2006
Operating Data:
Net interest income $486.6 $382.4
Provision for loan losses 8.0 3.4
Fee-based revenues 154.4 153.0
Net security gains (losses) 5.5 (27.2)
All other non-interest income 25.5 21.6
Non-interest expense (1) 439.3 346.9
Income from continuing operations 149.2 121.7
Income from discontinued
operations, net of tax 1.5 2.3
Net income 150.7 124.0
Selected Statistical Data:
Net interest margin 4.12% 3.87%
Return on average assets 1.18 1.15
Return on average stockholders' equity 4.2 9.4
Efficiency ratio 56.1 61.3
Per Common Share Data: (2)
Diluted earnings per share $0.52 $0.41
Dividends paid per share 0.52 0.46
Dividend payout ratio (3) 87.0% 48.3%
Book value (end of period) $15.43 $4.49
Tangible book value (end of period) 15.07 4.14
Stock price:
High 22.81 21.62
Low 14.78 14.29
Close (end of period) 17.80 21.25
Average diluted shares outstanding
(in millions) (4) 292.27 298.92
(1) Includes a $60.0 million contribution to the People's United
Community Foundation for the twelve months ended December 31, 2007.
Without the contribution, non-interest expense would have been $379.3
million for that period.
(2) Common share data has been adjusted (except dividend payout
ratio) to reflect the exchange of shares of People's United Bank
common stock for 2.1 shares of People's United Financial, Inc. common
stock upon completing the second-step conversion.
(3) Dividend payout ratio reflects the waiver of dividends on the
substantial majority of the common shares owned by People's Mutual
Holdings prior to completing the second- step conversion in April
2007.
(4) The twelve months ended December 31, 2007 reflects the purchase of
10.5 million shares of common stock during April 2007 in connection
with establishing People's United Financial's employee stock
ownership plan and the purchase of 7.0 million shares of common stock
during October 2007 in connection with establishing a new stock
incentive plan.
As of and for the Three Months Ended
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(dollars in millions) 2007 2007 2007 2007 2006
Financial Condition Data:
General:
Total assets $13,555 $13,551 $13,822 $11,602 $10,687
Loans 8,950 8,936 9,046 9,310 9,372
Short-term investments 3,516 3,550 3,655 1,213 225
Securities, net 61 66 70 73 77
Allowance for loan losses 73 74 73 74 74
Deposits 8,881 8,782 9,091 9,968 9,083
Core deposits 8,836 8,728 9,054 9,281 9,040
Borrowings - - - 8 4
Purchased funds 45 54 37 52 47
Subordinated notes 65 65 65 65 65
Stockholders' equity (1) 4,445 4,534 4,504 1,359 1,340
Non-performing assets 26 26 18 19 23
Net loan charge-offs 3.7 1.5 3.7 0.4 1.4
Average Balances:
Loans $8,869 $8,935 $9,169 $9,305 $9,247
Short-term investments 3,551 3,536 3,236 305 173
Securities 64 69 70 74 166
Earning assets 12,484 12,540 12,475 9,684 9,586
Total assets 13,446 13,516 13,399 10,601 10,553
Deposits 8,753 8,781 9,195 9,022 8,923
Funding liabilities 8,818 8,846 9,268 9,094 9,030
Stockholders' equity (1) 4,439 4,507 3,975 1,338 1,355
Ratios:
Net loan charge-offs to
average loans (annualized) 0.17% 0.07% 0.16% 0.01% 0.06%
Non-performing assets to
total loans, REO and
repossessed assets 0.29 0.29 0.20 0.21 0.24
Allowance for loan losses
to non-performing loans 358 318 405 389 328
Allowance for loan losses
to total loans 0.81 0.82 0.80 0.80 0.79
Average stockholders'
equity to average total
assets 33.0 33.3 29.7 12.6 12.8
Stockholders' equity to
total assets 32.8 33.4 32.6 11.7 12.5
Tangible stockholders'
equity to tangible assets 32.3 32.9 32.1 10.9 11.7
Leverage capital (2) 23.9 25.0 24.3 11.2 12.0
Tier 1 risk-based
capital (2) 32.0 34.0 33.9 14.7 14.8
Total risk-based
capital (2) 33.1 35.3 35.1 16.0 16.1
(1) The increases from March 31, 2007 primarily reflect net proceeds of
$3.3 billion from the sale of 172.2 million shares of People's United
Financial, Inc. common stock in connection with the second-step
conversion completed on April 16, 2007.
(2) People's United Bank's December 31, 2007 capital ratios are
preliminary.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION
Dec. 31, Sept. 30, Dec. 31,
(in millions) 2007 2007 2006
Assets
Cash and due from banks $296.2 $304.2 $344.1
Short-term investments 3,088.0 2,120.1 224.6
Total cash and cash equivalents 3,384.2 2,424.3 568.7
Securities:
Trading account securities, at
fair value 18.7 22.5 29.6
Securities available for sale, at
fair value 42.2 42.1 46.8
Securities held to maturity, at
amortized cost 0.6 1.1 1.1
Total securities 61.5 65.7 77.5
Securities purchased under agreements
to resell 428.0 1,430.0 -
Loans:
Residential mortgage 3,212.9 3,347.7 3,900.1
Commercial 2,600.4 2,518.0 2,363.6
Commercial real estate 1,885.6 1,822.7 1,786.7
Consumer 1,250.8 1,247.2 1,321.3
Total loans 8,949.7 8,935.6 9,371.7
Less allowance for loan losses (72.7) (73.5) (74.0)
Total loans, net 8,877.0 8,862.1 9,297.7
Bank-owned life insurance 222.6 219.4 212.6
Premises and equipment, net 156.8 151.4 136.8
Goodwill and other acquisition-
related intangibles 104.0 104.2 105.0
Other assets 320.7 293.4 288.6
Total assets $13,554.8 $13,550.5 $10,686.9
Liabilities
Deposits:
Non-interest-bearing $2,166.1 $2,081.0 $2,294.4
Savings, interest-bearing checking
and money market 3,008.9 3,003.5 3,205.2
Time 3,705.6 3,697.3 3,583.0
Total deposits 8,880.6 8,781.8 9,082.6
Borrowings:
Federal funds purchased - - 4.1
Total borrowings - - 4.1
Subordinated notes 65.4 65.3 65.3
Other liabilities 163.4 169.7 195.4
Total liabilities 9,109.4 9,016.8 9,347.4
Stockholders' Equity
Common stock ($0.01 par value; 1.95
billion shares authorized;
301.1 million shares and 300.9
million shares issued) 3.0 3.0 -
Common stock (without par value;
450.0 million shares authorized;
142.2 million shares issued and
outstanding) - - 142.2
Additional paid-in capital 3,642.8 3,710.4 182.9
Retained earnings 1,079.6 1,073.7 1,062.4
Treasury stock (51.8) - -
Unallocated common stock of Employee
Stock Ownership Plan (209.6) (212.0) -
Accumulated other comprehensive loss (18.6) (41.4) (48.0)
Total stockholders' equity 4,445.4 4,533.7 1,339.5
Total liabilities and
stockholders' equity $13,554.8 $13,550.5 $10,686.9
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(in millions, except per share data) 2007 2007 2007 2007 2006
Interest and dividend income:
Residential mortgage $43.2 $44.6 $47.1 $49.0 $50.0
Commercial 42.3 42.7 42.0 40.6 39.2
Commercial real estate 31.8 32.0 32.1 31.8 33.5
Consumer 21.0 22.5 22.5 22.9 23.5
Total interest on loans 138.3 141.8 143.7 144.3 146.2
Short-term investments 26.0 28.6 28.1 4.0 2.2
Securities purchased under
agreements to resell 15.5 18.1 14.7 - -
Securities 0.9 0.9 1.0 1.1 2.2
Total interest and dividend income 180.7 189.4 187.5 149.4 150.6
Interest expense:
Deposits 54.0 53.5 53.8 52.3 52.1
Borrowings - - 0.1 0.1 0.2
Subordinated notes 1.7 1.6 1.6 1.7 2.2
Total interest expense 55.7 55.1 55.5 54.1 54.5
Net interest income 125.0 134.3 132.0 95.3 96.1
Provision for loan losses 2.9 2.5 1.8 0.8 1.4
Net interest income after
provision for loan losses 122.1 131.8 130.2 94.5 94.7
Non-interest income:
Fee-based revenues:
Service charges on deposit accounts 19.4 19.4 19.5 18.0 19.4
Insurance revenue 6.2 7.1 6.2 7.3 7.1
Brokerage commissions 3.4 3.2 3.6 3.4 3.0
Other fees 10.4 9.0 9.2 9.1 10.0
Total fee-based revenues 39.4 38.7 38.5 37.8 39.5
Bank-owned life insurance 3.1 2.3 2.7 2.4 2.8
Net security gains - 5.5 - - -
Net gains on sales of residential
mortgage loans 0.6 0.8 0.9 0.7 0.5
Other non-interest income 3.0 2.9 3.4 2.7 2.5
Total non-interest income 46.1 50.2 45.5 43.6 45.3
Non-interest expense:
Compensation and benefits 56.3 53.1 54.9 51.3 49.4
Occupancy and equipment 17.1 17.3 16.2 16.5 15.4
Contribution to the People's United
Community Foundation - - 60.0 - -
Professional and outside service fees 8.5 7.4 6.7 6.2 6.5
Other non-interest expense 18.1 17.7 17.9 14.1 14.3
Total non-interest expense 100.0 95.5 155.7 88.1 85.6
Income from continuing operations
before income tax expense 68.2 86.5 20.0 50.0 54.4
Income tax expense 22.5 29.2 6.9 16.9 15.7
Income from continuing operations 45.7 57.3 13.1 33.1 38.7
Discontinued operations:
Income from discontinued operations,
net of tax 0.3 0.3 0.4 0.5 0.6
Income from discontinued operations 0.3 0.3 0.4 0.5 0.6
Net income $46.0 $57.6 $13.5 $33.6 $39.3
Diluted earnings per common share:
Income from continuing operations $0.16 $0.20 $0.05 $0.11 $0.13
Income from discontinued operations - - - - -
Net income 0.16 0.20 0.05 0.11 0.13
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Twelve Months Ended
Dec. 31, Dec. 31,
(in millions, except per share data) 2007 2006
Interest and dividend income:
Residential mortgage $183.9 $185.2
Commercial 167.6 146.5
Commercial real estate 127.7 126.0
Consumer 88.9 88.3
Total interest on loans 568.1 546.0
Short-term investments 86.7 5.3
Securities purchased under
agreements to resell 48.3 0.8
Securities 3.9 30.0
Total interest and dividend income 707.0 582.1
Interest expense:
Deposits 213.6 180.1
Borrowings 0.2 10.0
Subordinated notes 6.6 9.6
Total interest expense 220.4 199.7
Net interest income 486.6 382.4
Provision for loan losses 8.0 3.4
Net interest income after
provision for loan losses 478.6 379.0
Non-interest income:
Fee-based revenues:
Service charges on deposit accounts 76.3 77.8
Insurance revenue 26.8 27.3
Brokerage commissions 13.6 12.2
Other fees 37.7 35.7
Total fee-based revenues 154.4 153.0
Bank-owned life insurance 10.5 9.1
Net security gains (losses) 5.5 (27.2)
Net gains on sales of residential
mortgage loans 3.0 2.0
Other non-interest income 12.0 10.5
Total non-interest income 185.4 147.4
Non-interest expense:
Compensation and benefits 215.6 202.9
Occupancy and equipment 67.1 62.2
Contribution to the People's United
Community Foundation 60.0 -
Professional and outside service fees 28.8 24.3
Other non-interest expense 67.8 57.5
Total non-interest expense 439.3 346.9
Income from continuing operations
before income tax expense 224.7 179.5
Income tax expense 75.5 57.8
Income from continuing operations 149.2 121.7
Discontinued operations:
Income from discontinued
operations, net of tax 1.5 2.3
Income from discontinued operations 1.5 2.3
Net income $150.7 $124.0
Diluted earnings per common share:
Income from continuing operations $0.52 $0.40
Income from discontinued operations - 0.01
Net income 0.52 0.41
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
December 31, 2007 September 30, 2007
Three months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $2,227.5 $26.0 4.67% $2,157.6 $28.6 5.30%
Securities purchased
under agreements
to resell 1,323.4 15.5 4.66 1,378.8 18.1 5.25
Securities (2) 63.9 0.9 5.64 68.8 0.9 5.55
Loans:
Residential mortgage 3,279.0 43.2 5.27 3,434.7 44.6 5.20
Commercial 2,504.2 42.3 6.76 2,471.2 42.7 6.92
Commercial real
estate 1,837.8 31.8 6.93 1,777.2 32.0 7.20
Consumer 1,248.3 21.0 6.74 1,251.8 22.5 7.17
Total loans 8,869.3 138.3 6.24 8,934.9 141.8 6.35
Total earning
assets $12,484.1 $180.7 5.79% $12,540.1 $189.4 6.04%
Funding liabilities:
Deposits:
Non-interest-bearing $2,051.4 $- -% $2,098.2 $- -%
Savings, interest-
bearing checking
and money market 2,989.8 11.1 1.48 3,075.1 11.9 1.55
Time 3,691.2 42.6 4.62 3,590.3 41.5 4.62
Total core deposits 8,732.4 53.7 2.46 8,763.6 53.4 2.44
Non-core deposits 20.6 0.3 5.63 17.3 0.1 3.07
Total deposits 8,753.0 54.0 2.47 8,780.9 53.5 2.44
Borrowings:
Federal funds
purchased - - - - - -
Total borrowings - - - - - -
Subordinated notes 65.4 1.7 10.15 65.3 1.6 10.15
Total funding
liabilities $8,818.4 $55.7 2.53% $8,846.2 $55.1 2.49%
Excess of earning
assets over funding
liabilities $3,665.7 $3,693.9
Net interest
income/spread $125.0 3.26% $134.3 3.55%
Net interest margin 4.01% 4.28%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
December 31, 2006
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Earning assets:
Short-term investments $173.2 $2.2 5.13%
Securities purchased under
agreements to resell - - -
Securities (2) 166.4 2.2 5.39
Loans:
Residential mortgage 3,908.9 50.0 5.12
Commercial 2,228.0 39.2 7.04
Commercial real estate 1,792.3 33.5 7.48
Consumer 1,317.4 23.5 7.11
Total loans 9,246.6 146.2 6.32
Total earning assets $9,586.2 $150.6 6.28%
Funding liabilities:
Deposits:
Non-interest-bearing $2,113.1 $- -%
Savings, interest-bearing checking
and money market 3,210.8 12.4 1.55
Time 3,585.5 39.6 4.42
Total core deposits 8,909.4 52.0 2.34
Non-core deposits 13.7 0.1 4.11
Total deposits 8,923.1 52.1 2.34
Borrowings:
Federal funds purchased 12.8 0.2 5.44
Total borrowings 12.8 0.2 5.44
Subordinated notes 94.1 2.2 9.31
Total funding liabilities $9,030.0 $54.5 2.42%
Excess of earning assets
over funding liabilities $556.2
Net interest income/spread $96.1 3.87%
Net interest margin 4.01%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS
December 31, 2007 December 31, 2006
Twelve months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $1,709.4 $86.7 5.07% $106.6 $5.3 4.97%
Securities purchased
under agreements to
resell 959.1 48.3 5.03 16.6 0.8 4.98
Securities (2) 69.2 3.9 5.62 803.8 30.0 3.74
Loans:
Residential mortgage 3,550.3 183.9 5.18 3,758.8 185.2 4.93
Commercial 2,441.5 167.6 6.86 2,135.7 146.5 6.86
Commercial real
estate 1,807.3 127.7 7.07 1,765.1 126.0 7.14
Consumer 1,268.9 88.9 7.01 1,288.3 88.3 6.85
Total loans 9,068.0 568.1 6.27 8,947.9 546.0 6.10
Total earning
assets $11,805.7 $707.0 5.99% $9,874.9 $582.1 5.90%
Funding liabilities:
Deposits:
Non-interest-bearing $2,111.4 $- -% $2,168.6 $- -%
Savings, interest-
bearing checking and
money market 3,114.9 46.8 1.50 3,464.4 49.2 1.42
Time 3,632.0 165.8 4.56 3,308.7 128.8 3.89
Total core deposits 8,858.3 212.6 2.40 8,941.7 178.0 1.99
Non-core deposits (3) 78.4 1.0 1.30 40.4 2.1 5.42
Total deposits 8,936.7 213.6 2.39 8,982.1 180.1 2.01
Borrowings:
Federal funds
purchased 3.3 0.2 5.23 158.2 7.6 4.78
Federal Home Loan
Bank advances 0.1 - 5.04 47.2 2.4 5.15
Total borrowings 3.4 0.2 5.23 205.4 10.0 4.87
Subordinated notes 65.3 6.6 10.15 105.0 9.6 9.10
Total funding
liabilities $9,005.4 $220.4 2.45% $9,292.5 $199.7 2.15%
Excess of earning
assets over funding
liabilities $2,800.3 $582.4
Net interest
income/spread $486.6 3.54% $382.4 3.75%
Net interest margin 4.12% 3.87%
(1) Average balances and yields for securities available for sale are
based on amortized cost.
(2) The average balance for the twelve months ended December 31, 2007
includes $62.8 million in average escrow funds related to People's
United Financial, Inc.'s stock offering (none at December 31, 2007).
People's United Financial, Inc.
NON-PERFORMING ASSETS
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(dollars in millions) 2007 2007 2007 2007 2006
Non-accrual loans:
Residential mortgage $8.9 $7.2 $4.2 $5.0 $6.7
Commercial real estate 3.7 3.5 0.1 0.1 0.2
Consumer 3.3 2.2 1.5 1.3 1.7
PCLC 3.1 3.0 3.9 1.4 2.1
Commercial 1.3 7.2 8.2 11.3 11.9
Total non-accrual loans 20.3 23.1 17.9 19.1 22.6
Real estate owned ("REO") and
repossessed assets, net 5.8 3.1 0.5 0.3 0.1
Total non-performing assets $26.1 $26.2 $18.4 $19.4 $22.7
Non-performing loans as a percentage
of total loans 0.23% 0.26% 0.20% 0.21% 0.24%
Non-performing assets as a percentage
of total loans, REO and repossessed
assets 0.29 0.29 0.20 0.21 0.24
Non-performing assets as a percentage
of stockholders' equity and allowance
for loan losses 0.58 0.57 0.40 1.35 1.61
Allowance for loan losses as a
percentage of
non-performing loans 358 318 405 389 328
Allowance for loan losses as a
percentage of total loans 0.81 0.82 0.80 0.80 0.79
People's United Financial, Inc.
ALLOWANCE FOR LOAN LOSSES
Three Months Ended
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(in millions) 2007 2007 2007 2007 2006
Balance at beginning of period $73.5 $72.5 $74.4 $74.0 $74.0
Charge-offs (4.1) (2.0) (4.6) (0.8) (2.0)
Recoveries 0.4 0.5 0.9 0.4 0.6
Net loan charge-offs (3.7) (1.5) (3.7) (0.4) (1.4)
Provision for loan losses 2.9 2.5 1.8 0.8 1.4
Balance at end of period $72.7 $73.5 $72.5 $74.4 $74.0
People's United Financial, Inc.
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(in millions) 2007 2007 2007 2007 2006
Commercial $2.5 $0.5 $3.7 $- $0.8
PCLC 0.6 0.6 0.4 0.1 -
Consumer 0.6 0.5 0.2 0.3 0.6
Residential mortgage - - (0.6) - -
Commercial real estate - (0.1) - - -
Total $3.7 $1.5 $3.7 $0.4 $1.4
SOURCE People's United Financial, Inc.
 back to top
Related links:
http://www.peoples.com/
http://www.prnewswire.com/comp/113252.html /
CONTACT:
Valerie C. Carlson, First Vice President,
Corporate Communications, +1-203-338-2351, or Fax:
+1-203-338-3461, or valerie.carlson@peoples.com
|
