BRIDGEPORT, Conn., July 19 /PRNewswire-FirstCall/ -- People's United
Financial, Inc. (Nasdaq: PBCT) today announced that its Board of Directors
authorized the Company to file a notice with the Office of Thrift
Supervision ("OTS") requesting permission to repurchase shares of its
common stock during the first year following its second-step conversion,
which was completed on April 16, 2007.
While OTS rules generally preclude repurchases of shares during the
first year following a second-step conversion, the agency's regulations do
provide for requests for an exception to the rule. If the OTS grants the
Company's request, the Board intends to initiate a share repurchase program
for up to 5% of the Company's then outstanding common stock (which
represents the limit imposed by the OTS for a period of one year following
completion of a conversion). The stock repurchase program would begin upon
completion of the Company's recently announced agreement to acquire
Chittenden Corporation (NYSE: CHZ).
"The Board and management feel that the proposed repurchase program
demonstrates our continued commitment to enhance shareholder value," said
John Klein, Chairman and CEO. "As a result, if the OTS grants our request,
we intend to start repurchasing our shares as soon as possible following
completion of the Chittenden Corporation acquisition," added Mr. Klein.
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.
SOURCE People's United Financial, Inc.
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Related links:
http://www.peoples.com
http://www.prnewswire.com/comp/113252.html/
CONTACT:
Valerie C. Carlson, First Vice President,
Corporate Communications, +1-203-338-2351, Fax +1-203-338-3461,
or valerie.carlson@peoples.com, of People's United Financial,
Inc.
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