Quarter Characterized by Solid Asset Quality and Strong Capital Position
BRIDGEPORT, Conn., July 17 /PRNewswire-FirstCall/ -- People's United
Financial, Inc. (Nasdaq: PBCT) today announced net income of $43.0 million,
or $0.13 per share, for the second quarter of 2008, compared to $13.5
million, or $0.05 per share, for the second quarter of 2007. The prior year
quarter's results included the $60 million contribution to The People's
United Community Foundation, which had the effect of reducing net income by
$39.6 million, or $0.13 per share. Earnings for the second quarter of 2008
reflect continued low levels of net loan charge-offs and a partial benefit
from previously announced cost-reduction initiatives. Additionally, as
expected, there was continued margin pressure given the interest rate cuts
by the Federal Reserve Bank earlier this year and the temporary investment
of the company's significant excess capital in low-yielding short-term
investments.
People's United Financial completed its acquisition of Chittenden
Corporation on January 1, 2008. Accordingly, People's United Financial's
second quarter 2007 results do not include the results of Chittenden
Corporation.
For the second quarter of 2008, return on average tangible assets was
0.91 percent and return on average tangible stockholders' equity was 4.7
percent, compared to 0.41 percent and 1.4 percent, respectively, for the
year-ago quarter.
The Board of Directors of People's United Financial declared a $0.15
per share quarterly dividend, payable August 15, 2008 to shareholders of
record on August 1, 2008. Based on the closing stock price on July 16,
2008, the dividend yield on People's United Financial common stock is 3.8
percent.
President and Chief Executive Officer, Philip R. Sherringham stated,
"While our results this quarter continue to be negatively impacted by the
interest rate cuts initiated by the Federal Reserve Bank, we take great
comfort in our fortress balance sheet, and remain focused on our commercial
and retail banking strategy. The reduced level of interest income recorded
this quarter directly reflects the lower absolute rate earned on federal
funds, and is due to our deliberate decision to value the security of our
excess capital investment over the potential to increase near-term earnings
at the risk of future impairment."
Sherringham added, "Continued margin compression was expected this
quarter given the asset sensitive position of our balance sheet. The net
interest margin was down 11 basis points from the first quarter primarily
as a result of the dramatic actions taken by the Federal Reserve Bank
during 2008. We would also note that the rate of margin compression has
slowed substantially since the Federal Reserve Bank first initiated its
series of interest rate cuts in late 2007."
At June 30, 2008, non-performing assets totaled $86.4 million, a $19.4
million increase from March 31, 2008. Non-performing assets equaled 0.60
percent of total loans, REO and repossessed assets, compared to 0.46
percent at March 31, 2008. The allowance for loan losses as a percentage of
total loans was 1.06 percent at June 30, 2008 compared to 1.05 percent at
March 31, 2008.
Second quarter net loan charge-offs totaled $2.4 million compared to
$2.8 million in the first quarter of 2008. Net loan charge-offs as a
percent of average loans on an annualized basis were 0.07 percent in the
second quarter of 2008 compared to 0.08 percent in this year's first
quarter. The level of the allowance for loan losses is unchanged from March
31, 2008.
Commenting on asset quality, Sherringham stated, "While we expect the
level of non-performing assets to fluctuate in response to changing
economic and market conditions, we remain comfortable with the current
levels and have not seen any pervasive weakness in any sector of the loan
portfolio. This quarter saw an increase in non-performing assets, primarily
due to three commercial relationships in the northern New England portfolio
totaling $13 million."
Sherringham continued, "However, the ratio of non-performing loans to
total loans was 0.58 percent at June 30, 2008, net loan charge-offs remain
extremely low and the ratio of the allowance for loan losses to total loans
increased slightly. We feel that the loan portfolio continues to benefit
from our stringent underwriting standards, and we have made sure that those
standards are now in effect throughout the former Chittenden franchise."
Sherringham concluded, "We feel the best use of our capital is to have
the patience to find and execute a well priced acquisition that will best
enhance the long-term profitability of the company. Therefore, we do not
feel under pressure to immediately deploy the excess capital in either a
poorly priced deal or an aggressive stock buyback. However, we are
committed to a strong dividend policy and feel that continues to be an
appropriate avenue to enhance shareholder returns. Our balance sheet
continues to be funded primarily by deposits and stockholders' equity.
Given the many challenges of today's environment, the strength of our
capital and liquidity positions, asset quality and earnings set us apart
from most in the industry."
Conference Call
On July 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 the efficiency ratio.
Management believes this non-GAAP financial measure provides 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.
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 and fair value
adjustments, losses on real estate assets and nonrecurring expenses) to net
interest income on a fully taxable equivalent basis (excluding fair value
adjustments) 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
item of income or expense to be nonrecurring if it is not similar to an
item of income or expense of a type incurred within the last two years and
is not similar to an item of 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.
2Q 2008 Financial Highlights
Summary
-- Net income totaled $43.0 million, or $0.13 per share.
-- Net interest income on a fully taxable equivalent basis totaled
$157.9 million.
-- Net interest margin declined 11 basis points from 1Q08 to 3.56%.
-- Provision for loan losses totaled $2.4 million.
-- Net loan charge-offs totaled $2.4 million in 2Q08 compared to
$2.8 million in 1Q08.
-- The allowance for loan losses of $151.7 million remained unchanged
from March 31, 2008.
-- Non-interest income totaled $73.4 million.
-- Non-interest expense totaled $162.9 million.
-- Effective income tax rate was 34.0%.
Commercial Banking
-- Average commercial banking loans increased $148 million from 1Q08 to
$8.8 billion.
-- Commercial banking non-performing assets totaled $64.2 million.
-- The ratio of commercial banking non-performing loans to total
commercial banking loans was 0.70% at June 30, 2008.
-- Net loan charge-offs totaled $1.4 million, or 0.06% annualized, of
average commercial banking loans.
Retail & Small Business Banking
-- Average residential mortgage loans totaled $3.6 billion.
-- Average home equity loans totaled $1.7 billion.
-- Average indirect installment loans averaged $0.2 billion. -- Home equity net loan charge-offs totaled $0.2 million, or 0.05%
annualized, of average home equity loans.
-- Indirect installment net loan charge-offs totaled $0.3 million, or
0.57% annualized, of average indirect installment loans.
Treasury
-- Average short-term investments totaled $2.4 billion.
-- Average securities totaled $0.9 billion. -- Average short-term investments and securities represented 19% of
average earning assets.
People's United Financial, a diversified financial services company
with $20 billion in assets, provides consumer and commercial banking
services through a network of more than 300 branches in Connecticut,
Vermont, New Hampshire, Massachusetts, 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
People's United Financial, Inc. acquired Chittenden Corporation on
January 1, 2008. The acquisition was accounted for using the purchase
method of accounting. Accordingly, financial data for periods prior to
the acquisition date do not include Chittenden Corporation.
Three Months Ended
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
2008 2008 2007 2007 2007
(dollars in millions,
except per share data)
Operating Data:
Net interest income $157.0 $166.3 $125.0 $134.3 $132.0
Provision for loan losses (1) 2.4 8.3 2.9 2.5 1.8
Non-interest income 73.4 82.3 46.1 50.2 45.5
Non-interest expense (2) 162.9 219.2 100.0 95.5 155.7
Income from continuing
operations 43.0 15.1 45.7 57.3 13.1
Income from discontinued
operations - - 0.3 0.3 0.4
Net income 43.0 15.1 46.0 57.6 13.5
Selected Statistical Data:
Net interest margin (3) 3.56% 3.67% 4.01% 4.28% 4.23%
Return on average assets (3) 0.84 0.29 1.37 1.70 0.40
Return on average tangible
assets (3) 0.91 0.31 1.38 1.72 0.41
Return on average
stockholders' equity (3) 3.3 1.2 4.1 5.1 1.4
Return on average tangible
stockholders' equity (3) 4.7 1.6 4.2 5.2 1.4
Efficiency ratio 66.3 65.0 57.4 52.8 53.3
Per Common Share Data:
Diluted earnings per share $0.13 $0.05 $0.16 $0.20 $0.05
Dividends paid per share 0.15 0.13 0.13 0.13 0.13
Dividend payout ratio 116.1% 293.0% 83.2% 67.2% 286.4%
Book value (end of period) $15.63 $15.70 $15.43 $15.59 $15.50
Tangible book value (end of
period) 11.00 11.08 15.07 15.23 15.14
Stock price:
High 18.52 18.25 18.60 18.62 21.38
Low 15.52 14.29 15.83 14.78 17.56
Close (end of period) 15.60 17.31 17.80 17.28 17.73
Average diluted common shares
outstanding (in millions) 330.00 329.20 286.60 290.84 292.38
(1) Includes a $4.5 million provision for the three months ended
March 31, 2008 to align allowance for loan losses methodologies
across the combined organization following the acquisition of
Chittenden Corporation.
(2) Includes merger-related expenses of $36.5 million and other one-time
charges of $14.8 million for the three months ended March 31, 2008
and a $60.0 million contribution to The People's United Community
Foundation for the three months ended June 30, 2007.
(3) Annualized.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
Six Months Ended
June 30, June 30,
(dollars in millions, except per share data) 2008 2007
Operating Data:
Net interest income $323.3 $227.3
Provision for loan losses (1) 10.7 2.6
Non-interest income 155.7 89.1
Non-interest expense (2) 382.1 243.8
Income from continuing operations 58.1 46.2
Income from discontinued
operations, net of tax - 0.9
Net income 58.1 47.1
Selected Statistical Data:
Net interest margin (3) 3.61% 4.10%
Return on average assets (3) 0.56 0.78
Return on average tangible assets (3) 0.61 0.79
Return on average stockholders' equity (3) 2.2 3.5
Return on average tangible
stockholders' equity (3) 3.1 3.7
Efficiency ratio 65.6 57.4
Per Common Share Data:
Diluted earnings per share $0.18 $0.16
Dividends paid per share 0.28 0.25
Dividend payout ratio 162.2% 115.0%
Book value (end of period) $15.63 $15.50
Tangible book value (end of period) 11.00 15.14
Stock price:
High 18.52 22.81
Low 14.29 17.56
Close (end of period) 15.60 17.73
Average diluted shares outstanding
(in millions) 329.60 295.77
(1) Includes a $4.5 million provision for the six months ended
June 30, 2008 to align allowance for loan losses methodologies across
the combined organization following the acquisition of Chittenden
Corporation.
(2) Includes merger-related expenses of $36.5 million and other one-time
charges of $14.8 million for the six months ended June 30, 2008 and a
$60.0 million contribution to The People's United Community
Foundation for the six months ended June 30, 2007.
(3) Annualized.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
As of and for the Three Months Ended
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
(dollars in millions) 2008 2008 2007 2007 2007
Financial Condition Data:
General:
Total assets $20,392 $21,107 $13,555 $13,551 $13,822
Loans 14,366 14,492 8,950 8,936 9,046
Short-term
investments (1) 2,265 2,756 3,516 3,550 3,655
Securities, net 866 976 61 66 70
Allowance for loan
losses 152 152 73 74 73
Goodwill and other
acquisition-related
intangibles 1,541 1,536 104 104 105
Deposits 14,532 15,160 8,881 8,782 9,091
Borrowings 144 148 - - -
Subordinated notes 180 180 65 65 65
Stockholders' equity 5,211 5,219 4,445 4,534 4,504
Non-performing assets 86 67 26 26 18
Net loan charge-offs 2.4 2.8 3.7 1.5 3.7
Average Balances:
Loans $14,425 $14,537 $8,869 $8,935 $9,169
Short-term
investments (1) 2,433 2,666 3,551 3,536 3,236
Securities 907 1,020 64 69 70
Total earning assets 17,765 18,223 12,484 12,540 12,475
Total assets 20,492 20,893 13,446 13,516 13,399
Deposits 14,613 14,952 8,753 8,781 9,195
Total funding
liabilities 14,939 15,296 8,818 8,846 9,268
Stockholders' equity 5,202 5,214 4,439 4,507 3,975
Ratios:
Net loan charge-offs
to average loans
(annualized) 0.07% 0.08% 0.17% 0.07% 0.16%
Non-performing assets to
total loans, REO and
repossessed assets 0.60 0.46 0.29 0.29 0.20
Allowance for loan losses
to non-performing loans 183 244 358 318 405
Allowance for loan losses
to total loans 1.06 1.05 0.81 0.82 0.80
Average stockholders'
equity to average total
assets 25.4 25.0 33.0 33.3 29.7
Stockholders' equity to
total assets 25.6 24.7 32.8 33.4 32.6
Tangible stockholders'
equity to tangible
assets 19.5 18.8 32.3 32.9 32.1
Total risk-based
capital (2) 17.1 24.7 33.4 35.3 35.1
(1) Includes securities purchased under agreements to resell.
(2) People's United Bank's June 30, 2008 total risk-based capital ratio
is preliminary.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION
June 30, March 31,
(in millions) 2008 2008
Assets
Cash and due from banks $585.7 $522.3
Short-term investments 1,865.1 2,385.7
Total cash and cash equivalents 2,450.8 2,908.0
Securities:
Trading account securities, at fair value 29.5 24.9
Securities available for sale, at
fair value 835.3 949.8
Securities held to maturity, at
amortized cost 1.4 1.4
Total securities 866.2 976.1
Securities purchased under agreements
to resell 400.0 370.0
Loans:
Residential mortgage 3,494.8 3,782.2
Commercial real estate 4,856.6 4,763.6
Commercial 3,974.8 3,965.9
Consumer 2,040.0 1,980.3
Total loans 14,366.2 14,492.0
Less allowance for loan losses (151.7) (151.7)
Total loans, net 14,214.5 14,340.3
Bank-owned life insurance 225.0 227.2
Premises and equipment, net 267.2 269.1
Goodwill and other acquisition-
related intangibles 1,541.3 1,535.9
Other assets 427.4 480.1
Total assets $20,392.4 $21,106.7
Liabilities
Deposits:
Non-interest-bearing $3,340.3 $3,278.8
Savings, interest-bearing checking
and money market 6,161.2 6,444.2
Time 5,030.0 5,436.8
Total deposits 14,531.5 15,159.8
Borrowings:
Federal Home Loan Bank advances 15.4 17.1
Repurchase agreements 109.7 111.2
Other 18.7 20.0
Total borrowings 143.8 148.3
Subordinated notes 179.8 179.5
Other liabilities 326.2 400.5
Total liabilities 15,181.3 15,888.1
Stockholders' Equity
Common stock ($0.01 par value; 1.95
billion shares authorized; 346.7
million shares and 345.7 million
shares issued) 3.5 3.5
Additional paid-in capital 4,449.7 4,436.1
Retained earnings 1,041.8 1,049.0
Treasury stock, at cost (60.6) (58.2)
Accumulated other comprehensive loss (17.3) (4.0)
Unallocated common stock of Employee
Stock Ownership Plan (206.0) (207.8)
Total stockholders' equity 5,211.1 5,218.6
Total liabilities and
stockholders' equity $20,392.4 $21,106.7
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
(in millions, except per
share data) 2008 2008 2007 2007 2007
Interest and dividend income:
Residential mortgage $48.5 $53.0 $43.2 $44.6 $47.1
Commercial real estate 74.4 77.9 31.8 32.0 32.1
Commercial 56.9 60.6 42.3 42.7 42.0
Consumer 27.0 31.3 21.0 22.5 22.5
Total interest on loans 206.8 222.8 138.3 141.8 143.7
Short-term investments 9.4 18.9 26.0 28.6 28.1
Securities 7.4 10.1 0.9 0.9 1.0
Securities purchased under
agreements to resell 3.9 3.1 15.5 18.1 14.7
Total interest and
dividend income 227.5 254.9 180.7 189.4 187.5
Interest expense:
Deposits 65.8 83.7 54.0 53.5 53.8
Borrowings 0.9 1.1 - - 0.1
Subordinated notes 3.8 3.8 1.7 1.6 1.6
Total interest expense 70.5 88.6 55.7 55.1 55.5
Net interest income 157.0 166.3 125.0 134.3 132.0
Provision for loan losses 2.4 8.3 2.9 2.5 1.8
Net interest income
after provision
for loan losses 154.6 158.0 122.1 131.8 130.2
Non-interest income:
Investment management fees 9.5 8.8 3.1 3.0 3.0
Insurance revenue 8.1 9.1 6.2 7.1 6.2
Brokerage commissions 4.2 4.5 3.4 3.2 3.6
Total wealth management 21.8 22.4 12.7 13.3 12.8
Bank service charges 32.4 30.7 23.7 23.7 23.7
Merchant interchange fees 7.1 6.4 - - -
Bank-owned life insurance 1.7 3.0 3.1 2.3 2.7
Net security gains (losses) (0.2) 8.5 - 5.5 -
Net gains on sales of
residential mortgage loans 2.2 2.0 0.6 0.8 0.9
Other non-interest income 8.4 9.3 6.0 4.6 5.4
Total non-interest income 73.4 82.3 46.1 50.2 45.5
Non-interest expense:
Compensation and benefits 86.7 89.1 56.3 53.1 54.9
Occupancy and equipment 26.1 31.6 17.1 17.3 16.2
Contribution to The People's
United Community Foundation - - - - 60.0
Professional and outside
service fees 11.8 11.5 8.5 7.4 6.7
Amortization of other
acquisition-related
intangibles 5.3 5.2 0.2 0.3 0.3
Merger-related expenses - 36.5 - - -
Other non-interest expense 33.0 45.3 17.9 17.4 17.6
Total non-interest expense 162.9 219.2 100.0 95.5 155.7
Income from continuing
operations before income
tax expense 65.1 21.1 68.2 86.5 20.0
Income tax expense 22.1 6.0 22.5 29.2 6.9
Income from continuing
operations 43.0 15.1 45.7 57.3 13.1
Discontinued operations:
Income from discontinued
operations, net of tax - - 0.3 0.3 0.4
Net income $43.0 $15.1 $46.0 $57.6 $13.5
Diluted earnings per common
share:
Income from continuing
operations $0.13 $0.05 $0.16 $0.20 $0.05
Income from discontinued
operations - - - - -
Net income 0.13 0.05 0.16 0.20 0.05
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Six Months Ended
June 30, June 30,
(in millions, except per share data) 2008 2007
Interest and dividend income:
Residential mortgage $101.5 $96.1
Commercial real estate 152.3 63.9
Commercial 117.5 82.6
Consumer 58.3 45.4
Total interest on loans 429.6 288.0
Short-term investments 28.3 32.1
Securities 17.5 2.1
Securities purchased under
agreements to resell 7.0 14.7
Total interest and dividend income 482.4 336.9
Interest expense:
Deposits 149.5 106.1
Borrowings 2.0 0.2
Subordinated notes 7.6 3.3
Total interest expense 159.1 109.6
Net interest income 323.3 227.3
Provision for loan losses 10.7 2.6
Net interest income after
provision for loan losses 312.6 224.7
Non-interest income:
Investment management fees 18.3 5.9
Insurance revenue 17.2 13.5
Brokerage commissions 8.7 7.0
Total wealth management 44.2 26.4
Bank service charges 63.1 45.8
Merchant interchange fees 13.5 -
Bank-owned life insurance 4.7 5.1
Net security gains 8.3 -
Net gains on sales of residential
mortgage loans 4.2 1.6
Other non-interest income 17.7 10.2
Total non-interest income 155.7 89.1
Non-interest expense:
Compensation and benefits 175.8 106.2
Occupancy and equipment 57.7 32.7
Contribution to The People's United
Community Foundation - 60.0
Professional and outside service fees 23.3 12.9
Amortization of other acquisition-
related intangibles 10.5 0.5
Merger-related expenses 36.5 -
Other non-interest expense 78.3 31.5
Total non-interest expense 382.1 243.8
Income from continuing operations
before income tax expense 86.2 70.0
Income tax expense 28.1 23.8
Income from continuing operations 58.1 46.2
Discontinued operations:
Income from discontinued
operations, net of tax - 0.9
Net income $58.1 $47.1
Diluted earnings per common share:
Income from continuing operations $0.18 $0.16
Income from discontinued operations - -
Net income 0.18 0.16
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
June 30, 2008 March 31, 2008
Three months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Assets:
Short-term investments $1,663.1 $9.4 2.25% $2,279.1 $18.9 3.31%
Securities purchased
under agreements to
resell 769.7 3.9 2.05 387.4 3.1 3.25
Securities (2) 907.3 7.4 3.25 1,019.9 10.1 3.97
Loans:
Residential mortgage 3,632.4 48.5 5.34 3,908.6 53.0 5.42
Commercial real
estate 4,795.3 75.3 6.28 4,746.1 78.9 6.65
Commercial 3,987.8 56.9 5.71 3,888.8 60.6 6.23
Consumer 2,009.8 27.0 5.38 1,993.2 31.3 6.28
Total loans 14,425.3 207.7 5.76 14,536.7 223.8 6.16
Total earning
assets 17,765.4 $228.4 5.14% 18,223.1 $255.9 5.62%
Other assets 2,726.8 2,670.1
Total assets $20,492.2 $20,893.2
Liabilities and
stockholders' equity:
Deposits:
Non-interest-bearing $3,172.4 $- - % $3,145.9 $- - %
Savings, interest-
bearing checking
and money market 6,219.5 19.0 1.22 6,282.8 24.7 1.58
Time 5,220.6 46.8 3.59 5,523.2 59.0 4.27
Total deposits 14,612.5 65.8 1.80 14,951.9 83.7 2.24
Borrowings:
Federal Home Loan
Bank advances 16.0 0.2 5.22 18.4 0.2 4.84
Repurchase
agreements 110.9 0.5 1.71 116.3 0.8 2.60
Other 19.5 0.2 3.93 23.3 0.1 1.67
Total borrowings 146.4 0.9 2.39 158.0 1.1 2.73
Subordinated notes 179.6 3.8 8.42 185.8 3.8 8.14
Total funding
liabilities 14,938.5 $70.5 1.89% 15,295.7 $88.6 2.32%
Other liabilities 351.9 383.2
Total liabilities 15,290.4 15,678.9
Stockholders' equity 5,201.8 5,214.3
Total liabilities
and stockholders'
equity $20,492.2 $20,893.2
Excess of earning
assets over funding
liabilities $2,826.9 $2,927.4
Net interest
income/spread (3) $157.9 3.25% $167.3 3.30%
Net interest margin 3.56% 3.67%
(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) The FTE adjustment was $0.9 million and $1.0 million for the three
months ended June 30, 2008 and March 31, 2008, respectively (none for
the three months ended June 30, 2007).
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
June 30, 2007
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Assets:
Short-term investments $2,121.4 $28.1 5.30%
Securities purchased under
agreements to resell 1,115.0 14.7 5.29
Securities (2) 70.1 1.0 5.59
Loans:
Residential mortgage 3,666.5 47.1 5.14
Commercial real estate 1,806.1 32.1 7.11
Commercial 2,425.1 42.0 6.93
Consumer 1,271.2 22.5 7.08
Total loans 9,168.9 143.7 6.27
Total earning assets 12,475.4 $187.5 6.01%
Other assets 923.3
Total assets $13,398.7
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing $2,171.6 $- - %
Savings, interest-bearing checking
and money market 3,391.9 12.3 1.45
Time 3,631.6 41.5 4.57
Total deposits 9,195.1 53.8 2.34
Borrowings:
Federal Home Loan Bank advances - - -
Repurchase agreements - - -
Other 7.7 0.1 5.17
Total borrowings 7.7 0.1 5.17
Subordinated notes 65.3 1.6 10.15
Total funding liabilities 9,268.1 $55.5 2.40%
Other liabilities 155.4
Total liabilities 9,423.5
Stockholders' equity 3,975.2
Total liabilities and
stockholders' equity $13,398.7
Excess of earning assets
over funding liabilities $3,207.3
Net interest income/spread (3) $132.0 3.61%
Net interest margin 4.23%
(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) The FTE adjustment was $0.9 million and $1.0 million for the three
months ended June 30, 2008 and March 31, 2008, respectively (none for
the three months ended June 30, 2007).
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
June 30, 2008 June 30, 2007
Six months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Assets:
Short-term investments $1,971.1 $28.3 2.86% $1,218.2 $32.1 5.27%
Securities purchased
under agreements to
resell 578.6 7.0 2.45 560.6 14.7 5.26
Securities (2) 963.6 17.5 3.63 72.1 2.1 5.65
Loans:
Residential mortgage 3,770.5 101.5 5.38 3,746.9 96.1 5.13
Commercial real
estate 4,770.7 154.2 6.47 1,807.1 63.9 7.07
Commercial 3,938.3 117.5 5.97 2,394.6 82.6 6.90
Consumer 2,001.5 58.3 5.83 1,288.1 45.4 7.06
Total loans 14,481.0 431.5 5.96 9,236.7 288.0 6.24
Total earning
assets 17,994.3 $484.3 5.38% 11,087.6 $336.9 6.08%
Other assets 2,698.4 922.1
Total assets $20,692.7 $12,009.7
Liabilities and
stockholders' equity:
Deposits:
Non-interest-bearing $3,159.2 $- - % $2,148.7 $- - %
Savings, interest-
bearing checking
and money market 6,251.2 43.7 1.40 3,334.3 24.3 1.46
Time 5,371.9 105.8 3.94 3,626.2 81.8 4.51
Total deposits 14,782.3 149.5 2.02 9,109.2 106.1 2.33
Borrowings:
Federal Home Loan
Bank advances 17.2 0.4 5.02 0.3 - 5.07
Repurchase
agreements 113.6 1.3 2.17 - - -
Other 21.4 0.3 2.70 6.7 0.2 5.16
Total borrowings 152.2 2.0 2.57 7.0 0.2 5.16
Subordinated notes 182.7 7.6 8.28 65.3 3.3 10.16
Total funding
liabilities 15,117.2 $159.1 2.10% 9,181.5 $109.6 2.39%
Other liabilities 367.4 162.3
Total liabilities 15,484.6 9,343.8
Stockholders' equity 5,208.1 2,665.9
Total liabilities
and stockholders'
equity $20,692.7 $12,009.7
Excess of earning
assets over funding
liabilities $2,877.1 $1,906.1
Net interest
income/spread (3) $325.2 3.28% $227.3 3.69%
Net interest margin 3.61% 4.10%
(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) The FTE adjustment was $1.9 million for the six months ended
June 30, 2008 (none for the six months ended June 30, 2007).
People's United Financial, Inc.
NON-PERFORMING ASSETS
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
(dollars in millions) 2008 2008 2007 2007 2007
Non-accrual loans:
Commercial real estate $31.9 $27.8 $3.7 $3.5 $0.1
Commercial 23.4 12.8 1.3 7.2 8.2
Residential mortgage 18.3 15.0 8.9 7.2 4.2
PCLC 6.4 2.7 3.1 3.0 3.9
Consumer 3.1 3.8 3.3 2.2 1.5
Total non-accrual loans(1) 83.1 62.1 20.3 23.1 17.9
Real estate owned ("REO") and
repossessed assets, net 3.3 4.9 5.8 3.1 0.5
Total non-performing
assets $86.4 $67.0 $26.1 $26.2 $18.4
Non-performing loans as a
percentage of total loans 0.58% 0.43% 0.23% 0.26% 0.20%
Non-performing assets as a
percentage of:
Total loans, REO and
repossessed assets 0.60 0.46 0.29 0.29 0.20
Stockholders' equity and
allowance for loan losses 1.61 1.25 0.58 0.57 0.40
(1) Reported net of government guarantees totaling $6.6 million at
June 30, 2008 and $5.0 million at March 31, 2008 (none for prior
periods).
People's United Financial, Inc.
PROVISION AND ALLOWANCE FOR LOAN LOSSES
Three Months Ended
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
(in millions) 2008 2008 2007 2007 2007
Balance at beginning
of period $151.7 $72.7 $73.5 $72.5 $74.4
Charge-offs (3.6) (3.7) (4.1) (2.0) (4.6)
Recoveries 1.2 0.9 0.4 0.5 0.9
Net loan charge-offs (2.4) (2.8) (3.7) (1.5) (3.7)
Provision for loan losses 2.4 8.3 2.9 2.5 1.8
Allowance recorded in the
Chittenden acquisition - 73.5 - - -
Balance at end of period $151.7 $151.7 $72.7 $73.5 $72.5
Allowance for loan losses
as a percentage of:
Total loans 1.06% 1.05% 0.81% 0.82% 0.80%
Non-performing loans 183 244 358 318 405
People's United Financial, Inc.
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
(in millions) 2008 2008 2007 2007 2007
Consumer $1.0 $1.1 $0.6 $0.5 $0.2
Commercial 0.8 1.1 2.5 0.5 3.7
Commercial real estate 0.5 - - (0.1) -
PCLC 0.1 0.4 0.6 0.6 0.4
Residential mortgage - 0.2 - - (0.6)
Total $2.4 $2.8 $3.7 $1.5 $3.7
Net loan charge-offs to average loans
(annualized) 0.07% 0.08% 0.17% 0.07% 0.16%
SOURCE People's United Financial, Inc.
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Related links:
http://www.peoples.com
http://www.prnewswire.com/comp/113252.html /
CONTACT:
INVESTORS, Jared Shaw, Investor Relations,
+1-203-338-4130, Jared.Shaw@peoples.com, or MEDIA, Brent
DiGiorgio, Corporate Communications, +1-203-338-3135,
Brent.DiGiorgio@peoples.com, both of People's United Financial,
Inc.
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