BRIDGEPORT, Conn., July 19 /PRNewswire-FirstCall/ -- People's United
Financial, Inc. (Nasdaq: PBCT) today announced net income of $13.5 million,
or $0.05 per share, for the second quarter of 2007. The current quarter's
results reflect the previously announced $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. Excluding this charge, net
income would have been $53.1 million, or $0.18 per share, compared to $32.9
million or $0.11 per share for the second quarter of 2006. Prior period per
share information has been adjusted to reflect the exchange of People's
Bank common stock for 2.1 shares of People's United Financial common stock
upon completing the second-step conversion on April 16, 2007.
For the second quarter of 2007, return on average assets was 0.40
percent and return on average stockholders' equity was 1.4 percent,
compared to 1.20 percent and 10.1 percent, respectively, for the year-ago
quarter. Return on average assets and return on average stockholders'
equity would have been 1.59 percent and 5.34 percent, respectively, for the
second quarter of 2007, excluding the previously mentioned $60 million
contribution.
The Board of Directors of People's United Financial declared a $0.1333
per share quarterly dividend, payable August 15, 2007 to shareholders of
record on August 1, 2007. Based on the closing stock price on July 18,
2007, the dividend yield on People's United Financial common stock is 3.1
percent.
President and Chief Executive Officer, John A. Klein stated, "The
successful completion of our second-step conversion in April, which raised
$3.44 billion in gross proceeds, followed by our recent announcement of an
agreement to acquire the Chittenden Corporation, were truly significant
milestones for the company."
Klein added, "In addition, the announcement of our rebranding to
People's United Bank will facilitate our plans for continued growth in new
and existing markets, while at the same time emphasizing our commitment to
our customers and communities. Our funding of the People's United Community
Foundation also exemplifies this commitment."
Klein concluded, "And, of course, in mid-June we opened our first
Westchester County, New York branch in an attractive Scarsdale location.
Overall, it has been a busy quarter in which we nonetheless continued to
deliver strong financial results."
"Key drivers of the company's performance this quarter were a
significant increase in the net interest margin and ongoing strong asset
quality," said Philip R. Sherringham, Executive Vice President and Chief
Financial Officer. "The year-over-year 41 basis point improvement in the
net interest margin reflects the benefits from the investment of the net
proceeds from our second- step conversion and the balance sheet
restructuring activities completed during 2006."
Sherringham continued, "Average earning assets increased $2.4 billion
on a year-over-year basis, reflecting increases of $3.2 billion in average
short- term investments as a result of the second-step conversion and $272
million, or 3 percent, in average loans, while average securities declined
$1.0 billion, or 93 percent. While average commercial banking loans
increased 9 percent on a year-over-year basis, average residential mortgage
loans actually declined 2 percent as a result of our decision to sell all
newly-originated residential mortgage loans in the current environment."
Sherringham added, "Although non-interest expenses increased $7.6
million, or 9 percent, from the first quarter of 2007, the large increase
in net interest income due to the investment of the proceeds from the
second-step conversion led to a significant improvement in the efficiency
ratio to 53 percent this quarter."
Commenting on asset quality, Sherringham stated, "Second quarter net
loan charge-offs included a $3.6 million charge-off relating to one
commercial banking loan that has been classified as non-performing since
December 2006, comprising substantially all of total net loan charge-offs
of $3.7 million for the second quarter of 2007, compared to $0.2 million in
the year-ago quarter. Net loan charge-offs as a percent of average loans on
an annualized basis were 0.16 percent in the second quarter of 2007,
compared to 0.01 percent in the second quarter of last year."
At June 30, 2007, non-performing assets totaled $18.4 million, a $1.0
million, or 5 percent, decrease from March 31, 2007. Non-performing assets
equaled 0.20 percent of total loans, REO and repossessed assets, compared
to 0.21 percent at March 31, 2007. The allowance for loan losses as a
percentage of non-performing loans was 405 percent at June 30, 2007,
compared to 389 percent at March 31, 2007. The allowance for loan losses as
a percentage of total loans remained at 0.80 percent at both June 30, 2007
and March 31, 2007.
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 deposits from People's United Financial's subscription
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 (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.
Conference Call
On July 20, 2007, 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.
2Q Financial Highlights (2Q 2007 compared with 2Q 2006 unless otherwise
indicated)
Summary
-- Net income totaled $13.5 million, or $0.05 per share.
-- Excluding the $60 million contribution expense, earnings would
have been $53.1 million, or $0.18 per share.
-- Net interest income increased $35.9 million, or 37%.
-- Reflects the investment of $3.3 billion in net proceeds from the
second-step conversion.
-- Net interest margin increased 41 basis points from 2Q06 and
increased 29 basis points from 1Q07 to 4.23%.
-- Provision for loan losses increased $1.6 million.
-- Net loan charge-offs in 2Q07 totaled $3.7 million (which includes
a $3.6 million charge-off related to one commercial banking loan)
compared to $0.2 million in 2Q06.
-- The allowance for loan losses was reduced by $1.9 million in 2Q07.
-- Non-interest income, excluding security losses, increased $2.3 million,
or 5%.
-- Total fee-based revenues increased $1.0 million, or 3%.
-- Bank-owned life insurance income increased $0.5 million.
-- Non-interest expense, excluding the contribution expense, increased
$9.1 million, or 11%.
-- Compensation and benefits increased $4.6 million (2Q07 included
$2.3 million of amortization expense related to the newly-
implemented employee stock ownership plan as well as higher
compensation expense).
-- Other non-interest expense increased $3.1 million, with the
largest component being expenses tied to the rebranding of the
bank.
Commercial Banking
-- Average commercial banking loans grew $360 million, or 9%.
-- Average commercial non-interest-bearing deposits totaled $889 million.
-- Non-performing commercial banking assets decreased $0.3 million, or 3%,
from March 31, 2007.
-- The ratio of non-performing commercial banking loans to total
commercial banking loans was 0.29% at June 30, 2007, compared to 0.30%
at March 31, 2007 and 0.55% at June 30, 2006.
-- Net loan charge-offs totaled $4.1 million, or 0.38% annualized, of
average commercial banking loans.
Consumer Financial Services
-- Average residential mortgage loans decreased $87 million, or 2%.
-- Average consumer non-interest-bearing deposits totaled $1.2 billion.
Treasury
-- Average securities declined $1.0 billion, or 93%.
-- Average securities made up 1% of average earning assets compared to 10%
in 2Q06.
-- Average short-term investments increased $3.2 billion, reflecting the
investment of the net proceeds from the second-step conversion.
People's United Financial is a diversified financial services company
providing consumer and commercial banking services, in addition to
insurance, trust and financial advisory services. Its principal subsidiary,
People's United Bank, is a leader in supermarket banking, with 75 of its
160 branches located in Super Stop & Shop stores. Through its subsidiaries,
People's United Financial provides brokerage and financial advisory
services, asset management, equipment financing 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; and
(9) competition and its effect on pricing, spending, third-party
relationships and revenues. 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
June March Dec. Sept. June
(dollars in millions, 30, 31, 31, 30, 30,
except per share data) 2007 2007 2006 2006 2006
Operating Data:
Net interest income $132.0 $95.3 $96.1 $96.2 $96.1
Provision for loan losses 1.8 0.8 1.4 4.1 0.2
Fee-based revenues 38.5 37.8 39.5 38.2 37.5
Net security losses - - - (23.2) (4.0)
All other non-interest income 7.0 5.8 5.8 5.5 5.7
Non-interest expense (1) 155.7 88.1 85.6 87.1 86.6
Income from continuing
operations 13.1 33.1 38.7 16.9 32.2
Income from discontinued
operations 0.4 0.5 0.6 0.1 0.7
Net income 13.5 33.6 39.3 17.0 32.9
Selected Statistical Data:
Net interest margin (2) 4.23% 3.94% 4.01% 3.89% 3.82%
Return on average assets (2) 0.40 1.27 1.49 0.63 1.20
Return on average stockholders'
equity (2) 1.4 10.0 11.6 5.1 10.1
Efficiency ratio 53.3 62.6 59.7 61.5 61.7
Per Common Share Data: (3)
Diluted earnings per share $0.05 $0.11 $0.13 $0.06 $0.11
Dividends paid per share 0.13 0.12 0.12 0.12 0.12
Total dividend payout ratio 286.4% 46.1% 39.3% 91.0% 46.9%
Book value (end of period) $14.97 $4.55 $4.49 $4.53 $4.45
Tangible book value (end of
period) 14.62 4.20 4.14 4.17 4.09
Stock price:
High 21.38 22.81 21.62 19.60 16.43
Low 17.56 19.78 18.69 15.19 14.70
Close (end of period) 17.73 21.14 21.25 18.86 15.64
Average diluted shares
outstanding (in millions) (4) 292.38 299.26 299.20 298.93 298.57
(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.
(2) Annualized.
(3) Common share data has been adjusted (except total dividend payout
ratio) to reflect the exchange of shares of People's Bank common stock
for 2.1 shares of People's United Financial, Inc. common stock upon
completing the second-step conversion.
(4) The decrease from March 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.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
Six Months Ended
(dollars in millions, except per June 30, June 30,
share data) 2007 2006
Operating Data:
Net interest income $227.3 $190.1
Provision for loan losses 2.6 (2.1)
Fee-based revenues 76.3 75.3
Net security losses - (4.0)
All other non-interest income 12.8 10.3
Non-interest expense (1) 243.8 174.2
Income from continuing operations 46.2 66.1
Income from discontinued
operations, net of tax 0.9 1.6
Net income 47.1 67.7
Selected Statistical Data:
Net interest margin (2) 4.10% 3.80%
Return on average assets (2) 0.78 1.24
Return on average stockholders' equity (2) 3.5 10.4
Efficiency ratio 57.4 62.0
Per Common Share Data: (3)
Diluted earnings per share $0.16 $0.22
Dividends paid per share 0.25 0.22
Total dividend payout ratio 115.0% 42.8%
Book value (end of period) $14.97 $4.45
Tangible book value (end of period) 14.62 4.09
Stock price:
High 22.81 16.43
Low 17.56 14.29
Close (end of period) 17.73 15.64
Average diluted shares outstanding
(in millions) (4) 295.77 298.46
(1) Includes a $60.0 million contribution to the People's United
Community Foundation for the six months ended June 30, 2007. Without
the contribution, non-interest expense would have been $183.8 million.
(2) Annualized.
(3) Common share data has been adjusted (except total dividend payout
ratio) to reflect the exchange of shares of People's Bank common stock
for 2.1 shares of People's United Financial, Inc. common stock upon
completing the second-step conversion.
(4) The six months ended June 30, 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.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
As of and for the Three Months Ended
June March Dec. Sept. June
30, 31, 31, 30, 30,
(dollars in millions) 2007 2007 2006 2006 2006
Financial Condition Data:
General:
Total assets $13,822 $11,602 $10,687 $10,612 $11,005
Loans 9,046 9,310 9,372 9,185 9,034
Securities, net 70 73 77 202 901
Allowance for loan losses 73 74 74 74 74
Deposits 9,091 9,968 9,083 8,979 9,203
Core deposits 9,054 9,280 9,039 8,931 9,155
Borrowings - 8 4 14 221
Purchased funds 37 52 47 61 270
Subordinated notes 65 65 65 109 109
Stockholders' equity (1) 4,504 1,359 1,340 1,351 1,326
Non-performing assets 18 19 23 23 28
Net loan charge-offs 3.7 0.4 1.4 4.1 0.2
Average Balances:
Loans $9,169 $9,305 $9,247 $9,083 $8,897
Short-term investments 3,236 305 173 137 82
Securities 70 74 166 669 1,070
Earning assets 12,475 9,684 9,586 9,889 10,049
Total assets 13,399 10,601 10,553 10,778 10,939
Deposits 9,195 9,022 8,923 8,897 9,119
Funding liabilities 9,268 9,094 9,030 9,275 9,463
Stockholders' equity (1) 3,975 1,338 1,355 1,331 1,308
Ratios:
Net loan charge-offs to
average loans (annualized) 0.16% 0.01% 0.06% 0.18% 0.01%
Non-performing assets to
total loans, REO and
repossessed assets 0.20 0.21 0.24 0.25 0.31
Allowance for loan losses
to non-performing loans 404.8 389.4 327.9 354.9 266.8
Allowance for loan losses
to total loans 0.80 0.80 0.79 0.81 0.82
Average stockholders'
equity to average assets 29.7 12.6 12.8 12.3 12.0
Stockholders' equity to
total assets 32.6 11.7 12.5 12.7 12.1
Tier 1 leverage capital (2) 22.6 11.3 12.0 11.8 11.5
Tier 1 risk-based
capital (2) 31.4 14.7 14.8 14.7 14.8
Total risk-based
capital (2) 32.7 16.0 16.1 16.2 16.4
(1) The increase from March 31, 2007 primarily reflects 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) June 30, 2007 capital ratios are preliminary. Calculated in
accordance with Office of Thrift Supervision regulations since
September 30, 2006 and in accordance with Federal Deposit Insurance
Corporation regulations for June 30, 2006.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION
June 30, March 31, June 30,
(in millions) 2007 2007 2006
Assets
Cash and due from banks $360.9 $341.4 $400.0
Short-term investments 2,236.7 1,212.9 45.8
Total cash and cash equivalents 2,597.6 1,554.3 445.8
Securities:
Trading account securities, at fair
value 26.4 29.6 29.8
Securities available for sale, at
fair value 42.1 42.0 869.8
Securities held to maturity, at
amortized cost 1.1 1.1 1.1
Total securities 69.6 72.7 900.7
Securities purchased under agreements
to resell 1,418.0 - 25.0
Loans:
Residential mortgage 3,553.0 3,763.7 3,804.1
Commercial 2,451.3 2,439.7 2,159.4
Commercial real estate 1,784.1 1,821.7 1,786.7
Consumer 1,258.1 1,284.9 1,283.5
Total loans 9,046.5 9,310.0 9,033.7
Less allowance for loan losses (72.5) (74.4) (74.0)
Total loans, net 8,974.0 9,235.6 8,959.7
Bank-owned life insurance 218.0 215.2 209.0
Premises and equipment, net 147.4 143.2 135.2
Goodwill and other acquisition-
related intangibles 104.5 104.8 105.5
Other assets 293.1 276.6 223.8
Total assets $13,822.2 $11,602.4 $11,004.7
Liabilities
Deposits:
Non-interest-bearing $2,302.8 $2,332.5 $2,342.8
Savings, interest-bearing checking
and money market 3,194.4 3,297.7 3,560.2
Time 3,593.7 3,694.5 3,300.2
Subscription funds - 642.9 -
Total deposits 9,090.9 9,967.6 9,203.2
Borrowings:
Federal funds purchased - 7.8 116.0
Federal Home Loan Bank advances - - 105.0
Total borrowings - 7.8 221.0
Subordinated notes 65.3 65.3 108.7
Other liabilities 161.9 202.9 145.5
Total liabilities 9,318.1 10,243.6 9,678.4
Stockholders' Equity
Common stock ($0.01 par value; 1.95
billion shares authorized; 300.9
million shares issued and
outstanding) 3.0 - -
Common stock (without par value;
450.0 million shares and 150.0
million shares authorized; 142.3
million shares and 142.0 million
shares issued and outstanding) - 142.3 142.0
Additional paid-in capital 3,709.4 182.4 176.2
Retained earnings 1,055.2 1,080.5 1,037.1
Unallocated common stock held by the
employee stock ownership plan (214.4) - -
Accumulated other comprehensive loss (49.1) (46.4) (29.0)
Total stockholders' equity 4,504.1 1,358.8 1,326.3
Total liabilities and
stockholders' equity $13,822.2 $11,602.4 $11,004.7
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
June March Dec. Sept. June
30, 31, 31, 30, 30,
(in millions, except per share data) 2007 2007 2006 2006 2006
Interest and dividend income:
Residential mortgage $47.1 $49.0 $50.0 $47.7 $45.4
Commercial 42.0 40.6 39.2 38.0 36.1
Commercial real estate 32.1 31.8 33.5 32.2 31.0
Consumer 22.5 22.9 23.5 23.0 21.6
Total interest on loans 143.7 144.3 146.2 140.9 134.1
Securities 1.0 1.1 2.2 6.7 9.2
Short-term investments 28.1 4.0 2.2 1.6 0.7
Securities purchased under agreements
to resell 14.7 - - 0.2 0.3
Total interest and dividend income 187.5 149.4 150.6 149.4 144.3
Interest expense:
Deposits 53.8 52.3 52.1 47.1 42.9
Borrowings 0.1 0.1 0.2 3.7 2.8
Subordinated notes 1.6 1.7 2.2 2.4 2.5
Total interest expense 55.5 54.1 54.5 53.2 48.2
Net interest income 132.0 95.3 96.1 96.2 96.1
Provision for loan losses 1.8 0.8 1.4 4.1 0.2
Net interest income after provision
for loan losses 130.2 94.5 94.7 92.1 95.9
Non-interest income:
Fee-based revenues:
Service charges on deposit accounts 19.5 18.0 19.4 20.1 20.0
Insurance revenue 6.2 7.3 7.1 6.6 5.8
Brokerage commissions 3.6 3.4 3.0 2.9 3.2
Other fees 9.2 9.1 10.0 8.6 8.5
Total fee-based revenues 38.5 37.8 39.5 38.2 37.5
Net security losses - - - (23.2) (4.0)
Bank-owned life insurance 2.7 2.4 2.8 2.2 2.2
Net gains on sales of residential
mortgage loans 0.9 0.7 0.5 0.5 0.6
Other non-interest income 3.4 2.7 2.5 2.8 2.9
Total non-interest income 45.5 43.6 45.3 20.5 39.2
Non-interest expense:
Compensation and benefits 54.9 51.3 49.4 51.3 50.3
Occupancy and equipment 16.2 16.5 15.4 15.6 15.4
Contribution to the People's United
Community Foundation 60.0 - - - -
Professional and outside service fees 6.7 6.2 6.5 5.8 6.1
Other non-interest expense 17.9 14.1 14.3 14.4 14.8
Total non-interest expense 155.7 88.1 85.6 87.1 86.6
Income from continuing operations
before income tax expense 20.0 50.0 54.4 25.5 48.5
Income tax expense 6.9 16.9 15.7 8.6 16.3
Income from continuing operations 13.1 33.1 38.7 16.9 32.2
Discontinued operations:
Income from discontinued operations,
net of tax 0.4 0.5 0.6 0.1 0.7
Income from discontinued operations 0.4 0.5 0.6 0.1 0.7
Net income $13.5 $33.6 $39.3 $17.0 $32.9
Diluted earnings per common share:
Income from continuing operations $0.05 $0.11 $0.13 $0.05 $0.11
Income from discontinued operations - - - 0.01 -
Net income 0.05 0.11 0.13 0.06 0.11
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Six Months Ended
June 30, June 30,
(in millions, except per share data) 2007 2006
Interest and dividend income:
Residential mortgage $96.1 $87.5
Commercial 82.6 69.3
Commercial real estate 63.9 60.3
Consumer 45.4 41.8
Total interest on loans 288.0 258.9
Securities 2.1 21.1
Short-term investments 32.1 1.5
Securities purchased under agreements
to resell 14.7 0.6
Total interest and dividend income 336.9 282.1
Interest expense:
Deposits 106.1 80.9
Borrowings 0.2 6.1
Subordinated notes 3.3 5.0
Total interest expense 109.6 92.0
Net interest income 227.3 190.1
Provision for loan losses 2.6 (2.1)
Net interest income after provision for
loan losses 224.7 192.2
Non-interest income:
Fee-based revenues:
Service charges on deposit accounts 37.5 38.3
Insurance revenue 13.5 13.6
Brokerage commissions 7.0 6.3
Other fees 18.3 17.1
Total fee-based revenues 76.3 75.3
Bank-owned life insurance 5.1 4.1
Net security losses - (4.0)
Net gains on sales of residential
mortgage loans 1.6 1.0
Other non-interest income 6.1 5.2
Total non-interest income 89.1 81.6
Non-interest expense:
Compensation and benefits 106.2 102.2
Occupancy and equipment 32.7 31.2
Contribution to the People's United
Community Foundation 60.0 -
Professional and outside service fees 12.9 12.0
Other non-interest expense 32.0 28.8
Total non-interest expense 243.8 174.2
Income from continuing operations
before income tax expense 70.0 99.6
Income tax expense 23.8 33.5
Income from continuing operations 46.2 66.1
Discontinued operations:
Income from discontinued operations,
net of tax 0.9 1.6
Income from discontinued operations 0.9 1.6
Net income $47.1 $67.7
Diluted earnings per common share:
Income from continuing operations $0.16 $0.22
Income from discontinued operations - -
Net income 0.16 0.22
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
June 30, 2007 March 31, 2007
Three months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $2,121.4 $28.1 5.30% $305.0 $4.0 5.24%
Securities purchased
under agreements to
resell 1,115.0 14.7 5.29 - - -
Securities (2) 70.1 1.0 5.59 74.1 1.1 5.70
Loans:
Residential mortgage 3,666.5 47.1 5.14 3,828.2 49.0 5.12
Commercial 2,425.1 42.0 6.93 2,363.7 40.6 6.87
Commercial real
estate 1,806.1 32.1 7.11 1,808.2 31.8 7.03
Consumer 1,271.2 22.5 7.08 1,305.2 22.9 7.03
Total loans 9,168.9 143.7 6.27 9,305.3 144.3 6.20
Total earning
assets $12,475.4 $187.5 6.01% $9,684.4 $149.4 6.17%
Funding liabilities:
Deposits:
Non-interest-bearing $2,171.6 $- - % $2,125.6 $- - %
Savings, interest-
bearing checking
and money market 3,214.3 12.0 1.49 3,182.8 11.8 1.48
Time 3,627.9 41.4 4.57 3,618.2 40.3 4.45
Total core deposits 9,013.8 53.4 2.37 8,926.6 52.1 2.33
Non-core deposits (3) 181.3 0.4 0.82 95.7 0.2 0.92
Total deposits 9,195.1 53.8 2.34 9,022.3 52.3 2.32
Borrowings:
Federal funds purchased 7.7 0.1 5.17 5.7 0.1 6.00
Federal Home Loan
Bank advances - - - 0.6 - 5.04
Total borrowings 7.7 0.1 5.17 6.3 0.1 5.92
Subordinated notes 65.3 1.6 10.15 65.3 1.7 10.16
Total funding
liabilities $9,268.1 $55.5 2.40% $9,093.9 $54.1 2.38%
Excess of earning
assets over funding
liabilities $3,207.3 $590.5
Net interest
income/spread $132.0 3.61% $95.3 3.79%
Net interest margin 4.23% 3.94%
(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) Average balances for the three months ended June 30, 2007 and March
31, 2007 include $168.9 million and $84.0 million, respectively, in
escrow funds related to People's United Financial, Inc.'s subscription
offering.
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
June 30, 2006
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Earning assets:
Short-term investments $57.0 $0.7 4.66%
Securities purchased under agreements
to resell 25.0 0.3 5.06
Securities (2) 1,069.5 9.2 3.46
Loans:
Residential mortgage 3,754.0 45.4 4.83
Commercial 2,120.6 36.1 6.81
Commercial real estate 1,750.6 31.0 7.09
Consumer 1,272.4 21.6 6.80
Total loans 8,897.6 134.1 6.03
Total earning assets $10,049.1 $144.3 5.74%
Funding liabilities:
Deposits:
Non-interest-bearing $2,235.8 $- - %
Savings, interest-bearing checking
and money market 3,600.7 12.5 1.38
Time 3,241.6 29.7 3.67
Total core deposits 9,078.1 42.2 1.86
Non-core deposits (3) 41.0 0.7 7.06
Total deposits 9,119.1 42.9 1.88
Borrowings:
Federal funds purchased 199.8 2.4 4.84
Federal Home Loan Bank advances 35.4 0.4 5.02
Total borrowings 235.2 2.8 4.87
Subordinated notes 108.7 2.5 9.04
Total funding liabilities $9,463.0 $48.2 2.04%
Excess of earning assets
over funding liabilities $586.1
Net interest income/spread $96.1 3.70%
Net interest margin 3.82%
(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) Average balances for the three months ended June 30, 2007 and March
31, 2007 include $168.9 million and $84.0 million, respectively, in
escrow funds related to People's United Financial, Inc.'s subscription
offering.
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
June 30, 2007 June 30, 2006
Six months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $1,218.2 $32.1 5.27% $65.7 $1.5 4.49%
Securities purchased
under agreements to
resell 560.6 14.7 5.26 25.0 0.6 4.94
Securities (2) 72.1 2.1 5.65 1,196.6 21.1 3.53
Loans:
Residential mortgage 3,746.9 96.1 5.13 3,642.1 87.5 4.80
Commercial 2,394.6 82.6 6.90 2,078.0 69.3 6.68
Commercial real
estate 1,807.1 63.9 7.07 1,741.0 60.3 6.93
Consumer 1,288.1 45.4 7.06 1,266.2 41.8 6.60
Total loans 9,236.7 288.0 6.24 8,727.3 258.9 5.93
Total earning
assets $11,087.6 $336.9 6.08% $10,014.6 $282.1 5.63%
Funding liabilities:
Deposits:
Non-interest-bearing $2,148.7 $- - % $2,213.2 $- - %
Savings, interest-
bearing checking
and money market 3,198.6 23.8 1.49 3,637.7 24.3 1.33
Time 3,623.1 81.7 4.51 3,137.9 54.9 3.50
Total core
deposits 8,970.4 105.5 2.35 8,988.8 79.2 1.76
Non-core deposits (3) 138.8 0.6 0.85 66.2 1.7 5.17
Total deposits 9,109.2 106.1 2.33 9,055.0 80.9 1.79
Borrowings:
Federal funds
purchased 6.7 0.2 5.16 237.7 5.4 4.56
Federal Home Loan
Bank advances 0.3 - 5.07 33.6 0.7 4.74
Total borrowings 7.0 0.2 5.16 271.3 6.1 4.58
Subordinated notes 65.3 3.3 10.16 108.7 5.0 9.04
Total funding
liabilities $9,181.5 $109.6 2.39% $9,435.0 $92.0 1.95%
Excess of earning
assets over funding
liabilities $1,906.1 $579.6
Net interest
income/spread $227.3 3.69% $190.1 3.68%
Net interest margin 4.10% 3.80%
(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) Average balances for the six months ended June 30, 2007 include
$126.7 million in escrow funds related to People's United Financial,
Inc.'s subscription offering.
People's United Financial, Inc.
NON-PERFORMING ASSETS
June March Dec. Sept. June
30, 31, 31, 30, 30,
(dollars in millions) 2007 2007 2006 2006 2006
Non-accrual loans:
Commercial $8.2 $11.3 $11.9 $3.0 $6.9
Residential mortgage 4.2 5.0 6.7 7.8 4.8
PCLC 3.9 1.4 2.1 2.1 2.6
Consumer 1.5 1.3 1.7 1.3 1.1
Commercial real estate 0.1 0.1 0.2 6.6 12.3
Total non-accrual loans 17.9 19.1 22.6 20.8 27.7
Real estate owned ("REO") and
repossessed assets, net 0.5 0.3 0.1 2.1 0.4
Total non-performing assets $18.4 $19.4 $22.7 $22.9 $28.1
Non-performing loans as a percentage of
total loans 0.20% 0.21% 0.24% 0.23% 0.31%
Non-performing assets as a percentage
of total loans, REO and repossessed
assets 0.20 0.21 0.24 0.25 0.31
Non-performing assets as a percentage
of stockholders' equity and allowance
for loan losses 0.40 1.35 1.61 1.61 2.01
Allowance for loan losses as a
percentage of non-performing loans 404.8 389.4 327.9 354.9 266.8
Allowance for loan losses as a
percentage of total loans 0.80 0.80 0.79 0.81 0.82
People's United Financial, Inc.
ALLOWANCE FOR LOAN LOSSES
Three Months Ended
June March Dec. Sept. June
30, 31, 31, 30, 30,
(in millions) 2007 2007 2006 2006 2006
Balance at beginning of period $74.4 $74.0 $74.0 $74.0 $74.0
Charge-offs (4.6) (0.8) (2.0) (4.7) (1.1)
Recoveries 0.9 0.4 0.6 0.6 0.9
Net loan charge-offs (3.7) (0.4) (1.4) (4.1) (0.2)
Provision for loan losses 1.8 0.8 1.4 4.1 0.2
Balance at end of period $72.5 $74.4 $74.0 $74.0 $74.0
People's United Financial, Inc.
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
June March Dec. Sept. June
30, 31, 31, 30, 30,
(in millions) 2007 2007 2006 2006 2006
Consumer $0.2 $0.3 $0.6 $0.3 $0.3
PCLC 0.4 0.1 - - -
Commercial 3.7 - 0.8 3.9 -
Residential mortgage (0.6) - - (0.1) 0.1
Commercial real estate - - - - (0.2)
Total $3.7 $0.4 $1.4 $4.1 $0.2
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, of People's United Financial, Inc.,
+1-203-338-2351, fax +1-203-338-3461, valerie.carlson@peoples.com
|
