PBCT Total Return for 2004 Tops 86 Percent
BRIDGEPORT, Conn., Jan. 20 /PRNewswire-FirstCall/ -- People's Bank
(Nasdaq: PBCT), an $11 billion financial services company, today announced net
income of $28.0 million, or $0.30 per share, for the fourth quarter of 2004,
compared to $17.4 million, or $0.19 per share, for the fourth quarter of 2003.
For the year ended December 31, 2004, net income totaled $199.7 million, or
$2.13 per share, compared to $63.8 million, or $0.69 per share, for the prior
year. Prior period per share information has been restated to reflect the
three-for-two stock split completed in May 2004.
For the fourth quarter of 2004, return on average assets (ROA) was 1.06
percent compared to 0.60 percent for the year-ago quarter and return on
average stockholders' equity (ROE) was 9.4 percent compared to 7.1 percent for
the year-ago quarter. For 2004, ROA was 1.86 percent and ROE was 17.6 percent,
compared to 0.54 percent and 6.6 percent, respectively, for 2003.
People's Board of Directors declared a $0.29 per share quarterly dividend
on People's common stock, payable February 15, 2005, to stockholders of record
on February 1, 2005. People's Mutual Holdings, which owns 54.7 million shares
of People's Bank common stock, will accept dividends on only 3 percent of its
shares. Based on the closing stock price on January 19, 2005, the dividend
yield on People's Bank common stock is 3.1 percent.
"2004 was a transformational year for People's Bank and a very rewarding
one for our shareholders," said John A. Klein, President and Chief Executive
Officer. "We continue to build momentum with strong growth in our core
commercial and consumer banking businesses. Combined with the sale of our
credit card business and balance sheet restructuring earlier in the year, we
generated record full-year results. In addition, People's common stock
generated a total return for the year of 86 percent.
"We continue to generate solid loan growth across our lending businesses.
Our average commercial banking, home equity and residential mortgage loan
portfolios increased a combined $808 million, or 12 percent, since the fourth
quarter of 2003," added Klein. "The home equity loan portfolios surpassed the
$1 billion milestone during the fourth quarter. Commercial Banking ended the
year with over $3.5 billion in outstandings, a 16-percent increase from year-
end 2003. In the fourth quarter, Commercial Banking loans grew $210 million,
or 25 percent on an annualized basis." Klein continued, "On the deposit front,
we are also pleased by the growth in average core demand deposits, which
increased by $163 million, or 8 percent on a year-over-year basis."
Klein stated, "These results continue to demonstrate the significant value
of the bank's franchise in Connecticut, one of the most attractive banking
markets in the nation. People's is the only major bank in the state that is
uniquely focused on Connecticut's consumers and businesses."
"Other key drivers of the bank's performance this quarter were an increase
in the net interest margin and continued expense control," said Philip R.
Sherringham, Executive Vice President and Chief Financial Officer. "The 10
basis point improvement in the net interest margin to 3.57 percent from last
quarter reflects a combination of the bank's slightly asset-sensitive position
and the continued displacement of securities with higher-yielding loans."
Sherringham continued, "Expense control continues to be a significant area of
focus, as evidenced by the fact that non-interest expenses have remained
essentially flat over the past three quarters."
Commenting on asset quality, Sherringham added, "Bankwide asset quality
remains strong. Fourth quarter net loan charge-offs totaled $4.5 million, or
0.23 percent of average loans on an annualized basis, compared to $4.0 million
and 0.23 percent, respectively, in the fourth quarter of last year." Non-
performing assets equaled 0.36 percent of total loans, REO and other assets at
December 31, 2004 compared to 0.48 percent a year ago. The allowance for loan
losses as a percentage of non-performing loans was 265 percent at December 31,
2004, compared to 208 percent at December 31, 2003.
"Given the continued decline in the national personal installment loan
portfolio, which decreased 67 percent since December 31, 2003, as well as
significant reductions in this portfolio's net charge-off rate, we reduced the
allowance for loan losses by $2.5 million this quarter," stated Sherringham.
The allowance for loan losses as a percent of total loans was 0.91 percent at
December 31, 2004, compared to 0.99 percent at September 30, 2004.
Selected Financial Terms
Due to the sale of the credit card business in the first quarter of 2004,
information related to that business for all periods presented is now reported
in discontinued operations.
In addition to presenting financial information in accordance with
generally accepted accounting principles ("GAAP"), certain non-GAAP
information is also presented, such as operating revenue and the efficiency
ratio. Operating revenue consists of the sum of net interest income and total
non-interest income reduced by gains and losses other than from the sale of
residential mortgage loans and excluding other items that may recur from time
to time but that are deemed to occur irregularly or infrequently. Management
considers this measure to be more representative of People's ongoing ability
to generate revenues, as the excluded items are generally related to external
market conditions and non-routine transactions. The efficiency ratio, which is
derived in part from operating revenue and represents an approximate measure
of how much it costs People's to generate a dollar of revenue, is the ratio of
total adjusted non-interest expense to operating revenue. Total adjusted non-
interest expense equals People's total non-interest expense, excluding
amortization of acquisition-related intangibles, losses on real estate assets
and other items that may recur from time to time but that are deemed to occur
irregularly or infrequently.
This release contains information about People's core deposits and
purchased funds (both non-GAAP measures). Core deposits, a measure of stable
funding sources, equal total deposits, other than brokered certificates of
deposit (acquired in the wholesale market), municipal deposits (which are
seasonally variable by nature) and certain other non-interest-bearing
deposits. Purchased funds include borrowings, brokered certificates of deposit
and municipal deposits.
Conference Call
On January 21, 2005, at 11 a.m., Eastern Time, People's will host a
conference call to discuss this earnings announcement. The call may be heard
through http://www.peoples.com by selecting Investor Relations, News and
Events, Conference Calls. Additional materials relating to the call may also
be accessed at People's Web site. The call will be archived on the Web site
and available for approximately 90 days.
Other News Highlights
The American Banker, the daily newspaper of record for the banking
industry, reported that People's Bank was the top market performer in terms of
stock price appreciation among regional banks in the nation in 2004 with its
shares rising almost 80 percent for the year. The American Banker reported
that shares of banks and thrift companies with assets of between $10 billion
and $25 billion rose an average of 18 percent.
4Q Financial Highlights (4Q 2004 compared with 4Q 2003 unless otherwise
indicated)
Summary
-- Net income totaled $28.0 million, or $0.30 per share.
-- Income from continuing operations increased $12.8 million after-tax.
-- Provision for loan losses decreased $2.0 million.
-- The allowance for loan losses decreased $2.5 million from September
30, 2004.
-- Net loan charge-offs increased $0.5 million from 4Q03 and included a
$3.2 million charge-off related to one commercial real estate loan
that had been classified as non-performing since the fourth quarter
of 2002.
-- Net interest income increased $16.0 million.
-- Net interest margin improved 10 basis points from 3Q04 and increased
56 basis points from 4Q03 to 3.57%.
-- Non-interest income decreased $1.0 million.
-- Net gains on sales of residential mortgage loans decreased
$0.7 million.
-- Net security gains of $0.5 million in 4Q03 (none in 4Q04).
-- Non-interest expense decreased $3.0 million.
-- Compensation and benefits decreased $1.2 million.
-- Occupancy and equipment decreased $2.5 million.
-- Professional and outside service fees increased $1.2 million and
includes $0.6 million of costs related to Sarbanes-Oxley compliance.
-- Average total loans increased $699 million, or 10%.
Commercial Banking
-- Average commercial banking loans grew $400 million, or 13%.
-- Average commercial non-interest-bearing deposits increased $80 million,
or 9%.
-- The ratio of non-performing commercial banking loans to total
commercial banking loans was 0.54% at December 31, 2004 compared to
0.76% at September 30, 2004.
-- Non-performing loans decreased $6.2 million, or 25%, from
September 30, 2004.
-- Net loan charge-offs totaled $3.9 million or 0.46% of average
commercial banking loans.
-- Excluding the $3.2 million charge-off, the net loan charge-off ratio
would have been 0.08%.
Consumer Financial Services
-- Average home equity loan portfolios surpassed $1.0 billion this quarter
and increased $254 million, or 33%.
-- Average residential mortgage loans increased $154 million, or 5%.
-- Average consumer non-interest-bearing deposits grew $82 million, or 8%.
Treasury
-- Securities and short-term investments totaled $2.1 billion at
December 31, 2004, a $382 million decrease from December 31, 2003.
-- Debt securities decreased $233 million.
-- Other equity securities decreased $95 million.
-- Short-term investments decreased $48 million.
People's Bank is a diversified financial services company providing
consumer and commercial banking services, in addition to insurance and
financial advisory services. The bank is a leader in supermarket banking, with
66 of its 155 branches located in Super Stop & Shop stores. Through its
subsidiaries, People's provides brokerage and financial advisory services,
asset management, equipment leasing and financing, and insurance services.
Certain statements contained in this release are forward-looking in
nature. These include all statements about People'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 actual results or financial condition
to differ materially from those expressed in or implied by such statements.
Factors of particular importance to People's include (1) changes in general
economic conditions, including interest rates; (2) potential improvements or
deterioration in credit quality; (3) competition among providers of financial
services; (4) residential mortgage and secondary market activity; (5) changes
in accounting and regulatory guidance applicable to banks; and (6) price
levels and conditions in the public securities markets generally. People's
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 People's Bank on the World Wide Web at http://www.peoples.com.
People's Bank - It's Possible @ People's.
People's Bank and Subsidiaries
FINANCIAL HIGHLIGHTS
Three Months Ended
Dec. Sept. June March Dec.
(dollars in millions, except per 31, 30, 30, 31, 31,
share data) 2004 2004 2004 2004 2003
Operating Data:
Net interest income - FTE $88.1 $85.8 $80.1 $73.4 $72.4
Provision for loan losses 2.0 4.3 7.1 (0.1) 4.0
Fee-based revenues 36.3 35.0 34.6 37.0 36.7
Net security gains (losses) - 0.2 (0.1) (4.8) 0.5
All other non-interest income 2.2 3.5 4.5 2.3 2.3
Non-interest expense (1) 83.9 83.8 83.7 227.7 86.9
Gain on sale of discontinued
operations, net of tax - 2.0 0.2 196.3 -
Net income 28.0 27.5 25.0 119.2 17.4
Selected Statistical Data:
Net interest margin (2) 3.57% 3.47% 3.23% 3.03% 3.01%
Return on average assets (2) 1.06 1.04 0.94 4.25 0.60
Return on average stockholders'
equity (2) 9.4 9.5 8.7 45.6 7.1
Efficiency ratio 66.5 66.7 69.4 74.7 77.3
Per Common Share Data: (3)
Basic earnings per share $0.30 $0.29 $0.27 $1.28 $0.19
Diluted earnings per share 0.30 0.29 0.27 1.27 0.19
Dividends paid per share (4) 0.29 0.29 0.29 0.26 0.26
Total dividend payout ratio (4) 42.3% 42.8% 47.0% 8.7% 59.8%
Book value (end of period) $12.78 $12.63 $12.34 $12.38 $10.77
Tangible book value
(end of period) 11.68 11.53 11.24 11.27 9.55
Stock price:
High 44.48 37.00 33.73 31.37 22.67
Low 34.95 30.00 27.58 21.66 19.82
Close (end of period) 38.89 35.73 31.15 30.99 21.70
Average diluted shares
outstanding (in millions) 94.2 94.0 93.9 93.7 93.2
(1) Includes liability restructuring costs totaling $133.4 million for
the three months ended March 31, 2004.
(2) Annualized.
(3) Restated for the three-for-two stock split completed in May 2004.
(4) Reflects the waiver of dividends on the substantial majority of the
common shares owned by People's Mutual Holdings.
People's Bank and Subsidiaries
FINANCIAL HIGHLIGHTS - Continued
Years Ended
Dec. 31, Dec. 31,
(dollars in millions, except per share data) 2004 2003
Operating Data:
Net interest income - FTE $327.4 $284.3
Provision for loan losses 13.3 16.7
Fee-based revenues 142.9 143.0
Net security losses (4.7) (0.6)
All other non-interest income 12.5 23.6
Non-interest expense (1) 479.1 345.7
Gain on sale of discontinued
operations, net of tax 198.5 -
Net income 199.7 63.8
Selected Statistical Data:
Net interest margin 3.33% 2.89%
Return on average assets 1.86 0.54
Return on average stockholders' equity 17.6 6.6
Efficiency ratio 69.2 76.4
Per Common Share Data: (2)
Basic earnings per share $2.14 $0.69
Diluted earnings per share 2.13 0.69
Dividends paid per share (3) 1.13 1.02
Total dividend payout ratio (3) 22.9% 63.7%
Book value (end of period) $12.78 $10.77
Tangible book value (end of period) 11.68 9.55
Stock price:
High 44.48 22.67
Low 21.66 16.17
Close (end of period) 38.89 21.70
Average diluted shares outstanding
(in millions) 93.9 92.9
(1) Includes liability restructuring costs totaling $133.4 million and
$1.2 million for the years ended December 31, 2004 and December 31,
2003, respectively.
(2) Restated for the three-for-two stock split completed in May 2004.
(3) Reflects the waiver of dividends on the substantial majority of the
common shares owned by People's Mutual Holdings.
People's Bank and Subsidiaries
FINANCIAL HIGHLIGHTS - Continued
As of and for the Three Months Ended
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(dollars in millions) 2004 2004 2004 2004 2003
Financial Condition Data:
General:
Total assets $10,718 $10,541 $10,660 $10,669 $11,672
Loans 7,933 7,597 7,342 7,233 7,105
Allowance for loan losses 73 75 73 68 71
Securities, net 2,071 2,210 2,537 2,065 2,405
Deposits 8,862 8,812 8,949 8,793 8,714
Core deposits 8,681 8,550 8,758 8,578 8,461
Borrowings 341 222 225 296 1,516
Purchased funds 447 389 334 434 1,711
Subordinated notes 122 122 122 122 253
Stockholders' equity 1,200 1,184 1,157 1,159 1,002
Non-performing assets 29 34 35 33 34
Net loan charge-offs 4.5 2.3 2.4 2.1 4.0
Ratios:
Net loan charge-offs to
average loans (1) 0.23% 0.12% 0.13% 0.11% 0.23%
Non-performing assets to
total loans, REO and
other assets 0.36 0.45 0.48 0.46 0.48
Allowance for loan losses
to non-performing loans 264.6 225.5 212.4 209.5 208.4
Allowance for loan losses
to total loans 0.91 0.99 0.99 0.94 0.99
Average stockholders'
equity to average assets 11.2 11.0 10.8 9.3 8.5
Stockholders' equity to
total assets 11.2 11.2 10.9 10.9 8.6
Tier 1 leverage capital
(2) 10.5 10.3 10.0 9.4 8.0
Tier 1 risk-based capital
(2) 14.6 15.0 15.1 14.6 9.9
Total risk-based capital
(2) 16.7 17.3 17.5 16.9 13.1
(1) Annualized.
(2) December 31, 2004 capital ratios are preliminary.
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF CONDITION
Dec. 31, Sept. 30, Dec. 31,
(in millions) 2004 2004 2003
Assets
Cash and due from banks $309.0 $310.7 $343.0
Short-term investments 24.2 49.2 71.9
Total cash and cash equivalents 333.2 359.9 414.9
Securities:
Trading account securities,
at fair value 11.7 12.0 18.1
Securities available for sale,
at fair value 2,058.1 2,196.1 2,385.5
Securities held to maturity,
at amortized cost 1.4 1.4 1.4
Total securities 2,071.2 2,209.5 2,405.0
Loans:
Residential mortgage 3,266.4 3,195.5 3,089.1
Commercial real estate finance 1,838.1 1,813.0 1,699.9
Commercial 1,688.9 1,503.9 1,335.5
Consumer 1,140.0 1,085.0 980.5
Total loans 7,933.4 7,597.4 7,105.0
Less allowance for loan losses (72.5) (75.0) (70.5)
Total loans, net 7,860.9 7,522.4 7,034.5
Premises and equipment, net 148.5 143.7 150.0
Goodwill and other acquisition-
related intangibles 109.9 110.8 113.3
Other assets 194.2 194.5 270.6
Assets of discontinued operations - - 1,283.2
Total assets $10,717.9 $10,540.8 $11,671.5
Liabilities
Deposits:
Non-interest-bearing $2,227.1 $2,205.6 $2,078.0
Savings, interest-bearing checking
and money market 4,232.7 4,286.5 4,179.7
Time 2,402.2 2,320.3 2,456.3
Total deposits 8,862.0 8,812.4 8,714.0
Borrowings:
Federal funds purchased 240.8 222.1 348.9
Federal Home Loan Bank advances 100.0 - 964.3
Repurchase agreements - - 203.0
Total borrowings 340.8 222.1 1,516.2
Subordinated notes 121.8 121.7 252.9
Other liabilities 193.5 200.4 186.4
Total liabilities 9,518.1 9,356.6 10,669.5
Stockholders' Equity
Common stock (without par value;
150.0 shares, 150.0 shares and 100.0
shares authorized; 93.9 shares, 93.7
shares and 93.0 shares issued and
outstanding) 93.9 93.7 93.0
Additional paid-in capital 204.4 200.6 184.2
Retained earnings 913.7 897.6 759.8
Accumulated other comprehensive loss (12.2) (7.7) (35.0)
Total stockholders' equity 1,199.8 1,184.2 1,002.0
Total liabilities and
stockholders' equity $10,717.9 $10,540.8 $11,671.5
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(in millions, except per share data) 2004 2004 2004 2004 2003
Interest and dividend income:
Residential mortgage $35.4 $35.0 $32.6 $34.7 $34.5
Commercial real estate finance 27.9 26.4 25.5 25.1 26.0
Commercial 20.8 18.4 17.3 16.8 16.4
Consumer 12.8 11.6 10.9 11.4 12.2
Total interest on loans 96.9 91.4 86.3 88.0 89.1
Securities 17.2 19.4 17.3 18.5 20.5
Short-term investments 0.3 0.1 1.1 0.7 0.2
Total interest and dividend
income 114.4 110.9 104.7 107.2 109.8
Interest expense:
Deposits 22.3 21.5 21.3 21.6 22.8
Borrowings 1.2 0.9 0.6 10.9 15.0
Subordinated notes 2.8 2.8 2.8 5.0 5.7
Interest allocated to discontinued
operations - - - (3.6) (5.8)
Total interest expense 26.3 25.2 24.7 33.9 37.7
Net interest income 88.1 85.7 80.0 73.3 72.1
Provision for loan losses 2.0 4.3 7.1 (0.1) 4.0
Net interest income after
provision for loan losses 86.1 81.4 72.9 73.4 68.1
Non-interest income:
Fee-based revenues:
Service charges on deposit
accounts 16.8 17.8 17.7 16.9 17.3
Insurance revenue 8.0 6.4 5.1 8.4 7.5
Brokerage commissions 3.2 3.0 3.3 3.6 3.4
Other fees 8.3 7.8 8.5 8.1 8.5
Total fee-based revenues 36.3 35.0 34.6 37.0 36.7
Net security gains (losses) - 0.2 (0.1) (4.8) 0.5
Net gains on sales of residential
mortgage loans 0.7 0.7 1.3 1.0 1.4
Other non-interest income 1.5 2.8 3.2 1.3 0.9
Total non-interest income 38.5 38.7 39.0 34.5 39.5
Non-interest expense:
Compensation and benefits 45.9 46.5 46.5 55.4 47.1
Occupancy and equipment 16.5 17.6 17.5 17.9 19.0
Professional and outside service
fees 7.8 6.8 5.6 5.6 6.6
Liability restructuring costs - - - 133.4 -
Other non-interest expense 13.7 12.9 14.1 15.4 14.2
Total non-interest expense 83.9 83.8 83.7 227.7 86.9
Income (loss) from continuing
operations before income tax
expense (benefit) 40.7 36.3 28.2 (119.8) 20.7
Income tax expense (benefit) 14.4 12.8 5.8 (41.7) 7.2
Income (loss) from continuing
operations 26.3 23.5 22.4 (78.1) 13.5
Discontinued operations:
Income from discontinued operations,
net of tax 1.7 2.0 2.4 1.0 3.9
Gain on sale of discontinued
operations, net of tax - 2.0 0.2 196.3 -
Income from discontinued
operations 1.7 4.0 2.6 197.3 3.9
Net income $28.0 $27.5 $25.0 $119.2 $17.4
Diluted earnings per common share:
Income (loss) from continuing
operations $0.28 $0.25 $0.24 $(0.83) $0.15
Income from discontinued operations 0.02 0.04 0.03 2.10 0.04
Net income 0.30 0.29 0.27 1.27 0.19
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
Years Ended
Dec. 31, Dec. 31,
(in millions, except per share data) 2004 2003
Interest and dividend income:
Residential mortgage $137.7 $141.7
Commercial real estate finance 104.9 103.0
Commercial 73.3 66.3
Consumer 46.7 55.1
Total interest on loans 362.6 366.1
Securities 72.4 84.3
Short-term investments 2.2 3.8
Total interest and dividend income 437.2 454.2
Interest expense:
Deposits 86.7 102.5
Borrowings 13.6 69.0
Subordinated notes 13.4 22.8
Interest allocated to discontinued operations (3.6) (21.7)
Total interest expense 110.1 172.6
Net interest income 327.1 281.6
Provision for loan losses 13.3 16.7
Net interest income after provision
for loan losses 313.8 264.9
Non-interest income:
Fee-based revenues:
Service charges on deposit accounts 69.2 68.7
Insurance revenue 27.9 26.2
Brokerage commissions 13.1 13.4
Other fees 32.7 34.7
Total fee-based revenues 142.9 143.0
Net security losses (4.7) (0.6)
Net gains on sales of residential
mortgage loans 3.7 14.8
Other non-interest income 8.8 8.8
Total non-interest income 150.7 166.0
Non-interest expense:
Compensation and benefits 194.3 187.2
Occupancy and equipment 69.5 74.8
Professional and outside service fees 25.8 26.0
Liability restructuring costs 133.4 1.2
Other non-interest expense 56.1 56.5
Total non-interest expense 479.1 345.7
Income (loss) from continuing
operations before income tax
expense (benefit) (14.6) 85.2
Income tax expense (benefit) (8.7) 22.5
Income (loss) from continuing
operations (5.9) 62.7
Discontinued operations:
Income from discontinued
operations, net of tax 7.1 1.1
Gain on sale of discontinued
operations, net of tax 198.5 -
Income from discontinued operations 205.6 1.1
Net income $199.7 $63.8
Diluted earnings per common share:
Income (loss) from continuing operations $(0.06) $0.68
Income from discontinued operations 2.19 0.01
Net income 2.13 0.69
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
December 31, 2004 September 30, 2004
Three months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $51.3 $0.3 1.71% $50.9 $0.1 1.11%
Securities (2) 2,108.1 17.2 3.27 2,373.4 19.4 3.28
Loans:
Residential mortgage 3,229.8 35.4 4.38 3,179.5 35.0 4.40
Commercial real estate
finance 1,821.1 27.9 6.12 1,777.2 26.5 5.96
Commercial 1,551.0 20.8 5.37 1,446.7 18.4 5.09
Consumer 1,116.3 12.8 4.60 1,051.8 11.6 4.40
Total loans 7,718.2 96.9 5.02 7,455.2 91.5 4.91
Total earning assets $9,877.6 $114.4 4.63% $9,879.5 $111.0 4.49%
Funding liabilities:
Deposits:
Non-interest-bearing
deposits $2,076.7 $- - % $2,086.7 $- - %
Savings, interest-
bearing checking
and money market 4,246.1 8.7 0.82 4,327.9 8.8 0.81
Time 2,310.2 13.1 2.27 2,219.4 12.5 2.25
Total core deposits 8,633.0 21.8 1.01 8,634.0 21.3 0.98
Non-core deposits 185.8 0.5 1.14 193.4 0.2 0.50
Total deposits 8,818.8 22.3 1.01 8,827.4 21.5 0.98
Borrowings:
Federal funds
purchased 220.5 1.1 1.91 230.7 0.8 1.37
Federal Home Loan Bank
advances 19.2 0.1 2.12 35.8 0.1 1.54
Repurchase agreements - - - - - -
Total borrowings 239.7 1.2 1.93 266.5 0.9 1.39
Subordinated notes 121.8 2.8 9.19 121.7 2.8 9.19
Funding liabilities
allocated to
discontinued
operations (3) - - - - - -
Total funding
liabilities $9,180.3 $26.3 1.14% $9,215.6 $25.2 1.10%
Excess of earning assets
over funding
liabilities $697.3 $663.9
Net interest
income/spread $88.1 3.49% $85.8 3.39%
Net interest margin 3.57% 3.47%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
(3) Represents an allocation of funding liabilities and interest expense
to discontinued operations.
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
December 31, 2003
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Earning assets:
Short-term investments $80.9 $0.3 1.60%
Securities (2) 2,517.1 20.7 3.28
Loans:
Residential mortgage 3,076.1 34.5 4.49
Commercial real estate finance 1,693.7 26.0 6.13
Commercial 1,278.5 16.4 5.14
Consumer 971.1 12.2 5.05
Total loans 7,019.4 89.1 5.08
Total earning assets $9,617.4 $110.1 4.58%
Funding liabilities:
Deposits:
Non-interest-bearing deposits $1,914.1 $- - %
Savings, interest-bearing checking
and money market 4,092.7 8.2 0.80
Time 2,382.7 14.2 2.38
Total core deposits 8,389.5 22.4 1.07
Non-core deposits 252.3 0.4 0.68
Total deposits 8,641.8 22.8 1.05
Borrowings:
Federal funds purchased 425.9 1.0 0.97
Federal Home Loan Bank advances 940.5 12.5 5.34
Repurchase agreements 204.4 1.5 2.84
Total borrowings 1,570.8 15.0 3.83
Subordinated notes 252.9 5.7 9.04
Funding liabilities allocated to
discontinued operations (3) (1,304.6) (5.8) 1.78
Total funding liabilities $9,160.9 $37.7 1.65%
Excess of earning assets
over funding liabilities $456.5
Net interest income/spread $72.4 2.93%
Net interest margin 3.01%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
(3) Represents an allocation of funding liabilities and interest expense
to discontinued operations.
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS
December 31, 2004 December 31, 2003
Years ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $198.0 $2.3 1.19% $265.4 $4.9 1.80%
Securities (1) 2,248.0 72.5 3.23 2,656.0 85.8 3.23
Loans:
Residential mortgage 3,163.4 137.7 4.35 3,062.4 141.7 4.63
Commercial real estate
finance 1,760.7 105.0 5.96 1,647.1 103.1 6.26
Commercial 1,437.6 73.3 5.10 1,259.6 66.3 5.27
Consumer 1,035.0 46.7 4.51 943.5 55.1 5.84
Total loans 7,396.7 362.7 4.90 6,912.6 366.2 5.30
Total earning
assets $9,842.7 $437.5 4.45% $9,834.0 $456.9 4.65%
Funding liabilities:
Deposits:
Non-interest-bearing
deposits $2,043.7 $- - % $1,868.3 $- - %
Savings, interest-
bearing checking
and money market 4,274.7 34.4 0.81 3,973.6 35.5 0.89
Time 2,271.5 50.9 2.24 2,489.4 65.0 2.61
Total core deposits 8,589.9 85.3 0.99 8,331.3 100.5 1.20
Non-core deposits 198.5 1.4 0.69 300.3 2.0 0.68
Total deposits 8,788.4 86.7 0.99 8,631.6 102.5 1.19
Borrowings:
Federal funds
purchased 249.6 3.2 1.25 517.9 9.3 1.80
Federal Home Loan Bank
advances 176.1 9.4 5.32 1,059.5 53.8 5.08
Repurchase agreements 36.1 1.0 2.91 201.7 5.9 2.91
Total borrowings 461.8 13.6 2.94 1,779.1 69.0 3.88
Subordinated notes 146.5 13.4 9.16 252.7 22.8 9.04
Funding liabilities
allocated to
discontinued
operations (2) (203.6) (3.6) 1.77 (1,133.6) (21.7) 1.91
Total funding
liabilities $9,193.1 $110.1 1.20% $9,529.8 $172.6 1.81%
Excess of earning assets
over funding
liabilities $649.6 $304.2
Net interest
income/spread (3) $327.4 3.25% $284.3 2.83%
Net interest margin 3.33% 2.89%
(1) Average balances and yields for securities available for sale are
based on amortized cost.
(2) Represents an allocation of funding liabilities and interest expense
to discontinued operations.
(3) The FTE adjustment was $0.3 million for the year ended December 31,
2004 and $2.7 million for the year ended December 31, 2003.
People's Bank and Subsidiaries
NON-PERFORMING ASSETS
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(dollars in millions) 2004 2004 2004 2004 2003
Non-accrual loans:
Commercial $10.3 $12.0 $12.1 $8.4 $8.5
Commercial real estate finance 8.7 13.2 11.7 11.9 11.4
Residential mortgage 7.5 7.2 8.8 9.9 11.4
Consumer 0.9 0.9 1.8 2.4 2.5
Total non-accrual loans 27.4 33.3 34.4 32.6 33.8
Real estate owned ("REO") and other
assets, net 1.2 1.1 0.8 0.9 0.5
Total non-performing assets $28.6 $34.4 $35.2 $33.5 $34.3
Non-performing loans as a percentage of
total loans 0.35% 0.44% 0.47% 0.45% 0.48%
Non-performing assets as a percentage
of total loans, REO and other assets 0.36 0.45 0.48 0.46 0.48
Non-performing assets as a percentage
of stockholders' equity and allowance
for loan losses 2.25 2.73 2.86 2.73 3.20
Allowance for loan losses as a
percentage of non-performing loans 264.6 225.5 212.4 209.5 208.4
Allowance for loan losses as a
percentage of total loans 0.91 0.99 0.99 0.94 0.99
People's Bank and Subsidiaries
ALLOWANCE FOR LOAN LOSSES
Three Months Ended
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(in millions) 2004 2004 2004 2004 2003
Balance at beginning of period $75.0 $73.0 $68.3 $70.5 $70.5
Charge-offs (5.4) (3.2) (3.2) (3.4) (4.8)
Recoveries 0.9 0.9 0.8 1.3 0.8
Net loan charge-offs (4.5) (2.3) (2.4) (2.1) (4.0)
Provision for loan losses 2.0 4.3 7.1 (0.1) 4.0
Balance at end of period $72.5 $75.0 $73.0 $68.3 $70.5
People's Bank and Subsidiaries
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
(in millions) 2004 2004 2004 2004 2003
Commercial real estate finance $3.2 $- $- $(0.1) $-
Consumer 0.7 1.6 2.2 2.4 2.9
Commercial 0.7 0.7 0.1 (0.2) 1.1
Residential mortgage (0.1) - 0.1 - -
Total $4.5 $2.3 $2.4 $2.1 $4.0
SOURCE People's Bank
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Related links:
http://www.peoples.com
Company News On-Call:
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CONTACT:
Vincent J. Calabrese, Senior Vice President
and Controller, +1-203-338-4114 or Fax, +1-203-338-2362,
vince.calabrese@peoples.com, Valerie C. Carlson, Vice President,
Corporate Communications, +1-203-338-2351 or Fax,
+1-203-338-3461, valerie.carlson@peoples.com
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