BRIDGEPORT, Conn., July 21 /PRNewswire-FirstCall/ -- People's Bank
(Nasdaq: PBCT), an $11 billion financial services company, today announced net
income increased 48 percent to $37.0 million, or $0.26 per share, for the
second quarter of 2005 compared to $25.0 million, or $0.18 per share, for the
second quarter of 2004. The current quarter's results included $9.7 million
from the previously announced resolution of the remaining contingencies
related to the sale of People's credit card portfolio (reported in income from
discontinued operations) and a $2.0 million nonrecurring goodwill impairment
charge. Prior period per share information has been restated to reflect the
three-for-two stock split completed in May 2005.
Income from continuing operations excluding the goodwill impairment charge
would have increased 41 percent to $31.4 million, or $0.22 per share, from
$22.3 million, or $0.16 per share, for the year-ago quarter.
For the second quarter of 2005 return on average assets (ROA) was 1.36
percent and return on average stockholders' equity was 12.0 percent, compared
to 0.94 percent and 8.7 percent, respectively, for the year-ago quarter. ROA
would have been 1.20 percent for the second quarter of 2005 after excluding
the net increase in earnings from the items mentioned above.
People's Board of Directors declared a $0.22 per share quarterly dividend
on People's common stock, payable August 15, 2005, to shareholders of record
on August 1, 2005. People's Mutual Holdings, which owns 82.0 million shares of
People's Bank common stock, will accept dividends on only 2.5 percent of its
shares. Based on the closing stock price on July 20, 2005, the dividend yield
on People's Bank common stock is 2.7 percent.
President and Chief Executive Officer John A. Klein stated, "People's has
delivered another quarter of strengthening earnings through our continuing
focus on the fundamentals, including healthy growth in our core lending
businesses and yet another improvement in the net interest margin.
"We continue to generate double-digit loan growth across our commercial
and consumer businesses," said Klein. "Our average commercial banking, home
equity and residential mortgage loan portfolios increased a combined $983
million, or 14 percent, since the second quarter of 2004."
Klein added, "We continue to be nearly 100 percent funded by core deposits
and stockholders' equity, which affords the bank substantial flexibility to
fund future loan growth. On the deposit front, average core demand deposits
increased $105 million, or 5 percent, on a year-over-year basis."
"Other key drivers of the bank's performance this quarter were an increase
in the net interest margin and outstanding asset quality," said Philip R.
Sherringham, Executive Vice President and Chief Financial Officer. "The 43
basis point improvement in the net interest margin from the second quarter of
last year reflects a combination of the bank's slightly asset-sensitive
position and the ongoing substitution of securities with higher-yielding
loans."
Commenting on asset quality, Sherringham added, "Bankwide asset quality
remains very strong, with second quarter 2005 net loan charge-offs of $0.9
million, a 63 percent improvement from the second quarter of last year.
Annualized net loan charge-offs as a percent of average loans were only 4
basis points for the second consecutive quarter."
Non-performing assets declined $11.0 million, or 31 percent, since June
30, 2004 to $24.2 million and equaled 0.29 percent of total loans, REO and
repossessed assets at June 30, 2005, compared to 0.48 percent a year ago. The
allowance for loan losses as a percentage of non-performing loans was 312
percent at June 30, 2005, compared to 212 percent at June 30, 2004.
Sherringham continued, "The 620 basis point improvement in the efficiency
ratio from the year-ago quarter reflects a significant increase in revenue and
a slight decline in operating expenses." This quarter's results included a
$2.0 million nonrecurring goodwill impairment charge related to the bank's
asset management subsidiary, which is in the process of being combined with
People's other wealth management businesses.
As part of its ongoing effort to control expenses, the bank invested $150
million in a Bank Owned Life Insurance (BOLI) program late in the second
quarter of 2005. The earnings generated from the BOLI asset are expected to
help defray a portion of the rising cost of employee benefits.
Selected Financial Terms
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 is based on income from continuing operations 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 profitability, 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 the cost required by People's to generate
a dollar of revenue, is the ratio of operating expense to operating revenue.
Operating expense equals People's total non-interest expense, excluding
goodwill impairment, amortization of acquisition-related intangibles, losses
on real estate assets, and nonrecurring expenses. People's considers an
expense to be "nonrecurring" if is not similar to an expense of a type
incurred within the last two years, and is not similar to an expense of a type
reasonably expected to be incurred within the following two years.
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 non-interest-bearing deposits utilized for
the operation of People's businesses. Purchased funds include borrowings,
brokered certificates of deposit and municipal deposits.
Conference Call
On July 22, 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.
2Q Financial Highlights (2Q 2005 compared with 2Q 2004 unless otherwise
indicated)
Summary
* Net income totaled $37.0 million, or $0.26 per share.
* Provision for loan losses decreased $6.2 million.
-- Net loan charge-offs decreased $1.5 million.
-- The allowance for loan losses was increased $4.7 million in 2Q04.
* Net interest income increased $12.7 million.
-- Net interest margin increased 43 basis points from 2Q04 and improved
4 basis points from 1Q05 to 3.66%.
* Non-interest income declined $0.3 million.
-- Total fee-based revenues increased $2.0 million.
-- Other non-interest income in 2Q04 included $2.3 million of credit
card-related servicing income.
* Non-interest expense, excluding the goodwill impairment charge of $2.0
million, decreased $0.1 million.
-- Compensation and benefits increased $1.9 million.
-- Occupancy and equipment decreased $2.9 million.
* Effective income tax rate for 2Q05 equaled 34.4%, up from 22.6% in 2Q04.
-- Income tax expense in 2Q04 was reduced by $4.0 million as a result of
the completion of a federal tax audit in that quarter.
* Income from discontinued operations included $9.7 million ($6.3 million
after-tax) from the resolution of the remaining contingencies related to
the sold credit card portfolio.
Commercial Banking
* Average commercial banking loans grew $462 million, or 15%.
* Average commercial non-interest-bearing deposits increased $46 million,
or 5%.
* The ratio of non-performing commercial banking loans to total commercial
banking loans was 0.42% at June 30, 2005 compared to 0.54% at December
31, 2004.
* Net loan charge-offs were less than 1 basis point of average commercial
banking loans.
Consumer Financial Services
* Average home equity loan portfolios increased $254 million, or 30%.
* Average residential mortgage loans increased $267 million, or 9%.
* Average consumer non-interest-bearing deposits grew $59 million, or 5%.
Treasury
* Average securities and short-term investments declined $658 million, or
25%.
-- Securities made up 19% of average earning assets in 2Q05 compared to
22% in 2Q04.
-- The debt securities portfolio totaled $1.6 billion at June 30, 2005,
an $890 million, or 36%, decrease from a year ago.
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
67 of its 154 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, but are not limited to:
(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.
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People's Bank and Subsidiaries
FINANCIAL HIGHLIGHTS
Three Months Ended
June March Dec. Sept. June
30, 31, 31, 30, 30,
(dollars in millions, 2005 2005 2004 2004 2004
except per share data)
Operating Data:
Net interest income $92.7 $91.2 $88.1 $85.7 $80.0
Provision for loan losses 0.9 1.3 2.0 4.3 7.1
Fee-based revenues 36.6 35.5 36.3 35.0 34.6
Net security gains (losses) 0.1 (0.1) - 0.2 (0.1)
All other non-interest income 2.0 1.9 2.2 3.5 4.5
Non-interest expense 85.7 81.3 83.9 83.8 83.8
Gain on sale of discontinued
operations, net of tax 6.2 - - 2.0 0.2
Net income 37.0 31.4 28.0 27.5 25.0
Selected Statistical Data:
Net interest margin (1) 3.66% 3.62% 3.57% 3.47% 3.23%
Return on average assets (1) 1.36 1.17 1.06 1.04 0.94
Return on average stockholders'
equity (1) 12.0 10.4 9.4 9.5 8.7
Efficiency ratio 63.3 62.8 66.5 66.7 69.5
Per Common Share Data: (2)
Basic earnings per share $0.26 $0.23 $0.20 $0.20 $0.18
Diluted earnings per share 0.26 0.22 0.20 0.19 0.18
Dividends paid per share (3) 0.22 0.19 0.19 0.19 0.19
Dividend payout ratio (3) 36.5% 37.7% 42.3% 42.8% 47.0%
Book value (end of period) $8.84 $8.61 $8.52 $8.42 $8.23
Tangible book value (end of
period) 8.09 7.84 7.74 7.63 7.43
Stock price:
High 30.48 28.00 29.65 24.67 22.49
Low 26.27 23.99 23.30 20.00 18.39
Close (end of period) 30.24 27.30 25.93 23.82 20.77
Average diluted shares
outstanding (in millions) 141.75 141.42 141.24 140.95 140.83
(1) Annualized.
(2) Restated for the three-for-two stock split completed in May 2005.
(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
Six Months Ended
June 30, June 30,
(dollars in millions, except per share data) 2005 2004
Operating Data:
Net interest income $183.9 $153.3
Provision for loan losses 2.2 7.0
Fee-based revenues 72.1 71.6
Net security gains (losses) - (4.9)
All other non-interest income 3.9 6.9
Non-interest expense (1) 167.0 311.2
Gain on sale of discontinued operations,
net of tax 6.2 196.5
Net income 68.4 144.2
Selected Statistical Data:
Net interest margin (2) 3.64% 3.13%
Return on average assets (2) 1.26 2.64
Return on average stockholders' equity (2) 11.2 26.3
Efficiency ratio 63.0 71.8
Per Common Share Data: (3)
Basic earnings per share $0.49 $1.03
Diluted earnings per share 0.48 1.03
Dividends paid per share (4) 0.41 0.37
Dividend payout ratio (4) 37.1% 15.4%
Book value (end of period) $8.84 $8.23
Tangible book value (end of period) 8.09 7.43
Stock price:
High 30.48 22.49
Low 23.99 14.44
Close (end of period) 30.24 20.77
Average diluted shares outstanding
(in millions) 141.58 140.52
(1) Includes liability restructuring costs totaling $133.4 million for
the six months ended June 30, 2004.
(2) Annualized.
(3) Restated for the three-for-two stock split completed in May 2005.
(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
As of and for the Three Months Ended
June 30, March 31, Dec. 31, Sept. 30, June 30,
(dollars in millions) 2005 2005 2004 2004 2004
Financial Condition Data:
General:
Total assets $10,931 $10,857 $10,718 $10,541 $10,660
Loans 8,288 8,088 7,933 7,597 7,342
Allowance for loan
losses 73 73 73 75 73
Securities, net 1,658 1,971 2,071 2,210 2,537
Deposits 9,177 9,046 8,862 8,812 8,949
Core deposits 8,978 8,829 8,681 8,550 8,728
Borrowings 234 289 341 222 225
Purchased funds 313 400 447 389 334
Subordinated notes 122 122 122 122 122
Stockholders' equity 1,251 1,216 1,200 1,184 1,157
Non-performing assets 24 27 29 34 35
Net loan charge-offs 0.9 0.8 4.5 2.3 2.4
Ratios:
Net loan charge-offs to
average loans (1) 0.04% 0.04% 0.23% 0.12% 0.13%
Non-performing assets to
total loans,
REO and repossessed
assets 0.29 0.33 0.36 0.45 0.48
Allowance for loan losses
to non-performing loans 312.3 280.0 264.6 225.5 212.4
Allowance for loan losses
to total loans 0.88 0.90 0.91 0.99 0.99
Average stockholders'
equity to average assets 11.3 11.2 11.2 11.0 10.8
Stockholders' equity to
total assets 11.4 11.2 11.2 11.2 10.9
Tier 1 leverage
capital (2) 10.7 10.6 10.5 10.3 10.0
Tier 1 risk-based
capital (2) 14.8 14.7 14.6 15.0 15.1
Total risk-based
capital (2) 16.8 16.8 16.7 17.3 17.5
(1) Annualized.
(2) June 30, 2005 capital ratios are preliminary.
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF CONDITION
June 30, March 31, June 30,
(in millions) 2005 2005 2004
Assets
Cash and due from banks $375.4 $282.4 $343.9
Short-term investments 57.9 116.3 53.3
Total cash and cash
equivalents 433.3 398.7 397.2
Securities:
Trading account securities,
at fair value 34.1 13.4 12.2
Securities available for
sale, at fair value 1,622.0 1,955.8 2,523.8
Securities held to
maturity, at amortized
cost 1.4 1.4 1.4
Total securities 1,657.5 1,970.6 2,537.4
Securities purchased under
agreements to resell 25.0 25.0 -
Loans:
Residential mortgage 3,440.9 3,363.0 3,144.5
Commercial 1,854.0 1,758.2 1,423.6
Commercial real estate
finance 1,790.6 1,813.5 1,761.2
Consumer 1,202.9 1,153.4 1,012.9
Total loans 8,288.4 8,088.1 7,342.2
Less allowance for loan
losses (73.0) (73.0) (73.0)
Total loans, net 8,215.4 8,015.1 7,269.2
Premises and equipment, net 149.0 148.2 144.2
Goodwill and other
acquisition-related
intangibles 106.8 109.2 111.6
Bank owned life insurance 151.2 0.9 0.5
Other assets 192.6 189.6 199.4
Total assets $10,930.8 $10,857.3 $10,659.5
Liabilities
Deposits:
Non-interest-bearing $2,370.4 $2,272.7 $2,277.4
Savings, interest-bearing
checking and money market 4,092.8 4,240.9 4,403.8
Time 2,713.4 2,532.4 2,268.0
Total deposits 9,176.6 9,046.0 8,949.2
Borrowings:
Federal funds purchased 208.9 188.9 225.4
Federal Home Loan Bank
advances 25.0 100.0 -
Total borrowings 233.9 288.9 225.4
Subordinated notes 121.9 121.9 121.7
Other liabilities 147.9 184.2 206.6
Total liabilities 9,680.3 9,641.0 9,502.9
Stockholders' Equity
Common stock (without par
value; 150.0 shares
authorized; 141.4 shares,
141.3 shares and 140.6 shares
issued and outstanding) 141.4 141.3 140.6
Additional paid-in capital 167.0 163.4 152.2
Retained earnings 956.8 933.3 881.9
Accumulated other
comprehensive loss (14.7) (21.7) (18.1)
Total stockholders'
equity 1,250.5 1,216.3 1,156.6
Total liabilities and
stockholders' equity $10,930.8 $10,857.3 $10,659.5
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
June March Dec. Sept. June
30, 31, 31, 30, 30,
(in millions, 2005 2005 2004 2004 2004
except per share data)
Interest and dividend income:
Residential mortgage $38.1 $36.8 $35.4 $35.0 $32.6
Commercial real estate finance 29.0 28.1 27.9 26.4 25.5
Commercial 25.9 23.4 20.8 18.4 17.3
Consumer 15.5 14.1 12.8 11.6 10.9
Total interest on loans 108.5 102.4 96.9 91.4 86.3
Securities 16.5 17.2 17.2 19.4 17.3
Short-term investments 0.3 0.2 0.3 0.1 1.1
Securities purchased under
agreements to resell 0.3 0.1 - - -
Total interest and dividend
income 125.6 119.9 114.4 110.9 104.7
Interest expense:
Deposits 27.9 23.6 22.3 21.5 21.3
Borrowings 2.2 2.3 1.2 0.9 0.6
Subordinated notes 2.8 2.8 2.8 2.8 2.8
Total interest expense 32.9 28.7 26.3 25.2 24.7
Net interest income 92.7 91.2 88.1 85.7 80.0
Provision for loan losses 0.9 1.3 2.0 4.3 7.1
Net interest income after
provision for loan losses 91.8 89.9 86.1 81.4 72.9
Non-interest income:
Fee-based revenues:
Service charges on deposit
accounts 17.3 15.4 16.8 17.8 17.7
Insurance revenue 5.9 7.4 8.0 6.4 5.1
Brokerage commissions 3.7 3.1 3.2 3.0 3.3
Other fees 9.7 9.6 8.3 7.8 8.5
Total fee-based revenues 36.6 35.5 36.3 35.0 34.6
Net security gains (losses) 0.1 (0.1) - 0.2 (0.1)
Net gains on sales of residential
mortgage loans 1.0 0.6 0.7 0.7 1.3
Bank owned life insurance 0.1 - - - -
Other non-interest income 0.9 1.3 1.5 2.8 3.2
Total non-interest income 38.7 37.3 38.5 38.7 39.0
Non-interest expense:
Compensation and benefits 48.4 47.7 45.9 46.5 46.5
Occupancy and equipment 14.7 15.7 16.5 17.6 17.6
Professional and outside
service fees 6.7 6.0 7.8 6.8 5.6
Goodwill impairment 2.0 - - - -
Other non-interest expense 13.9 11.9 13.7 12.9 14.1
Total non-interest expense 85.7 81.3 83.9 83.8 83.8
Income from continuing operations
before income tax expense 44.8 45.9 40.7 36.3 28.1
Income tax expense 15.4 16.1 14.4 12.8 5.8
Income from continuing operations 29.4 29.8 26.3 23.5 22.3
Discontinued operations:
Income from discontinued operations,
net of tax 1.4 1.6 1.7 2.0 2.5
Gain on sale of discontinued
operations, net of tax 6.2 - - 2.0 0.2
Income from discontinued
operations 7.6 1.6 1.7 4.0 2.7
Net income $37.0 $31.4 $28.0 $27.5 $25.0
Diluted earnings per common share:
Income from continuing operations $0.21 $0.21 $0.19 $0.16 $0.16
Income from discontinued operations 0.05 0.01 0.01 0.03 0.02
Net income 0.26 0.22 0.20 0.19 0.18
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
Six Months Ended
June 30, June 30,
(in millions, except per share data) 2005 2004
Interest and dividend income:
Residential mortgage $74.9 $67.3
Commercial real estate finance 57.1 50.6
Commercial 49.3 34.1
Consumer 29.6 22.3
Total interest on loans 210.9 174.3
Securities 33.7 35.8
Short-term investments 0.5 1.8
Securities purchased under
agreements to resell 0.4 -
Total interest and dividend income 245.5 211.9
Interest expense:
Deposits 51.5 42.9
Borrowings 4.5 11.5
Subordinated notes 5.6 7.8
Interest allocated to discontinued
operations - (3.6)
Total interest expense 61.6 58.6
Net interest income 183.9 153.3
Provision for loan losses 2.2 7.0
Net interest income after
provision for loan losses 181.7 146.3
Non-interest income:
Fee-based revenues:
Service charges on deposit accounts 32.7 34.6
Insurance revenue 13.3 13.5
Brokerage commissions 6.8 6.9
Other fees 19.3 16.6
Total fee-based revenues 72.1 71.6
Net security gains (losses) - (4.9)
Net gains on sales of residential
mortgage loans 1.6 2.3
Bank owned life insurance 0.1 -
Other non-interest income 2.2 4.6
Total non-interest income 76.0 73.6
Non-interest expense:
Compensation and benefits 96.1 101.9
Occupancy and equipment 30.4 35.1
Professional and outside service fees 12.7 11.2
Liability restructuring costs - 133.4
Goodwill impairment 2.0 -
Other non-interest expense 25.8 29.6
Total non-interest expense 167.0 311.2
Income (loss) from continuing
operations before income
tax expense (benefit) 90.7 (91.3)
Income tax expense (benefit) 31.5 (35.8)
Income (loss) from continuing
operations 59.2 (55.5)
Discontinued operations:
Income from discontinued
operations, net of tax 3.0 3.2
Gain on sale of discontinued
operations, net of tax 6.2 196.5
Income from discontinued
operations 9.2 199.7
Net income $68.4 $144.2
Diluted earnings per common share:
Income (loss) from continuing
operations $0.42 $(0.39)
Income from discontinued operations 0.06 1.42
Net income 0.48 1.03
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
June 30, 2005 March 31, 2005
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term
investments $53.7 $0.3 2.54% $43.8 $0.2 1.83%
Securities
purchased under
agreements to
resell 25.0 0.3 4.00 16.1 0.1 3.65
Securities (2) 1,907.7 16.8 3.52 2,034.4 17.2 3.38
Loans:
Residential
mortgage 3,398.3 38.1 4.48 3,300.6 36.8 4.45
Commercial
real estate
finance 1,817.5 29.0 6.38 1,827.0 28.1 6.17
Commercial 1,790.5 25.9 5.78 1,707.5 23.4 5.48
Consumer 1,177.8 15.5 5.27 1,149.2 14.1 4.90
Total loans 8,184.1 108.5 5.30 7,984.3 102.4 5.13
Total
earning
assets $10,170.5 $125.9 4.95% $10,078.6 $119.9 4.76%
Funding
liabilities:
Deposits:
Non-interest-
bearing
deposits $2,167.6 $ - - % $2,100.6 $ - - %
Savings,
interest-
bearing
checking
and money
market 4,131.5 10.7 1.03 4,193.7 9.2 0.87
Time 2,594.8 16.7 2.57 2,411.4 14.0 2.33
Total core
deposits 8,893.9 27.4 1.23 8,705.7 23.2 1.07
Non-core
deposits 156.1 0.5 1.32 141.7 0.4 0.98
Total
deposits 9,050.0 27.9 1.23 8,847.4 23.6 1.07
Borrowings:
Federal funds
purchased 239.3 1.7 2.89 250.4 1.5 2.39
Federal Home Loan
Bank advances 64.2 0.5 3.01 125.2 0.7 2.44
Repurchase
agreements - - - 6.9 0.1 2.38
Total
borrowings 303.5 2.2 2.92 382.5 2.3 2.41
Subordinated notes 121.9 2.8 9.18 121.8 2.8 9.18
Total funding
liabilities $9,475.4 $32.9 1.39% $9,351.7 $28.7 1.23%
Excess of earning
assets over
funding
liabilities $695.1 $726.9
Net interest
income/spread $93.0 3.56% $91.2 3.53%
Net interest margin 3.66% 3.62%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
June 30, 2004
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Earning assets:
Short-term investments $424.7 $1.2 1.11%
Securities purchased under
agreements to resell - - -
Securities (2) 2,219.8 17.3 3.11
Loans:
Residential mortgage 3,131.0 32.6 4.17
Commercial real estate
finance 1,736.3 25.5 5.88
Commercial 1,409.7 17.3 4.93
Consumer 990.1 10.9 4.38
Total loans 7,267.1 86.3 4.75
Total earning assets $9,911.6 $104.8 4.23%
Funding liabilities:
Deposits:
Non-interest-bearing
deposits $2,062.3 $ - - %
Savings, interest-bearing
checking
and money market 4,348.0 8.6 0.80
Time 2,245.5 12.4 2.20
Total core deposits 8,655.8 21.0 0.97
Non-core deposits 203.0 0.3 0.46
Total deposits 8,858.8 21.3 0.96
Borrowings:
Federal funds purchased 266.0 0.6 0.94
Federal Home Loan Bank
advances - - -
Repurchase agreements - - -
Total borrowings 266.0 0.6 0.94
Subordinated notes 121.7 2.8 9.19
Total funding liabilities $9,246.5 $24.7 1.07%
Excess of earning assets
over funding liabilities $665.1
Net interest income/spread $80.1 3.16%
Net interest margin 3.23%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
June 30, 2005 June 30, 2004
Six months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $48.8 $0.5 2.22% $346.6 $2.0 1.15%
Securities purchased
under agreements to
resell 20.6 0.4 3.86 - - -
Securities (2) 1,970.7 34.0 3.44 2,255.2 35.8 3.18
Loans:
Residential mortgage 3,349.7 74.9 4.47 3,121.7 67.3 4.31
Commercial real
estate finance 1,822.2 57.1 6.28 1,721.7 50.6 5.89
Commercial 1,749.2 49.3 5.63 1,375.7 34.1 4.96
Consumer 1,163.6 29.6 5.08 985.4 22.3 4.52
Total loans 8,084.7 210.9 5.22 7,204.5 174.3 4.84
Total earning
assets $10,124.8 $245.8 4.85% $9,806.3 $212.1 4.33%
Funding liabilities:
Deposits:
Non-interest-bearing
deposits $2,134.3 $ - - % $2,005.4 $ - - %
Savings, interest-
bearing checking
and money market 4,162.4 19.9 0.95 4,262.4 16.9 0.79
Time 2,503.6 30.7 2.45 2,278.2 25.4 2.23
Total core
deposits 8,800.3 50.6 1.15 8,546.0 42.3 0.99
Non-core deposits 148.9 0.9 1.16 207.4 0.6 0.57
Total deposits 8,949.2 51.5 1.15 8,753.4 42.9 0.98
Borrowings:
Federal funds
purchased 244.8 3.2 2.64 273.8 1.3 0.94
Federal Home Loan
Bank advances 94.6 1.2 2.64 326.4 9.1 5.60
Repurchase agreements 3.4 0.1 2.38 72.7 1.1 2.89
Total borrowings 342.8 4.5 2.64 672.9 11.5 3.41
Subordinated notes 121.9 5.6 9.18 171.5 7.8 9.13
Funding liabilities
allocated to
discontinued
operations (3) - - - (409.5) (3.6) 1.76
Total funding
liabilities $9,413.9 $61.6 1.31% $9,188.3 $58.6 1.28%
Excess of earning
assets over funding
liabilities $710.9 $618.0
Net interest
income/spread $184.2 3.54% $153.5 3.05%
Net interest margin 3.64% 3.13%
(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
NON-PERFORMING ASSETS
June March Dec. Sept. June
30, 31, 31, 30, 30,
(dollars in millions) 2005 2005 2004 2004 2004
PCLC $7.0 $6.5 $5.1 $6.6 $5.7
Residential mortgage 6.7 5.5 7.5 7.2 8.8
Commercial real estate finance 5.9 7.4 8.7 13.2 11.7
Commercial 2.5 5.2 5.2 5.4 6.4
Consumer 1.2 1.5 0.9 0.9 1.8
Total non-accrual loans 23.3 26.1 27.4 33.3 34.4
Real estate owned ("REO") and
repossessed assets, net 0.9 0.9 1.2 1.1 0.8
Total non-performing assets $24.2 $27.0 $28.6 $34.4 $35.2
Non-performing loans as a
percentage of total loans 0.28% 0.32% 0.35% 0.44% 0.47%
Non-performing assets as a
percentage of total loans,
REO and repossessed assets 0.29 0.33 0.36 0.45 0.48
Non-performing assets as a
percentage of stockholders'
equity and allowance for
loan losses 1.83 2.09 2.25 2.73 2.86
Allowance for loan losses as a
percentage of
non-performing loans 312.3 280.0 264.6 225.5 212.4
Allowance for loan losses as a
percentage of total loans 0.88 0.90 0.91 0.99 0.99
People's Bank and Subsidiaries
ALLOWANCE FOR LOAN LOSSES
Three Months Ended
June March Dec. Sept. June
30, 31, 31, 30, 30,
(in millions) 2005 2005 2004 2004 2004
Balance at beginning of period $73.0 $72.5 $75.0 $73.0 $68.3
Charge-offs (1.7) (1.7) (5.4) (3.2) (3.2)
Recoveries 0.8 0.9 0.9 0.9 0.8
Net loan charge-offs (0.9) (0.8) (4.5) (2.3) (2.4)
Provision for loan losses 0.9 1.3 2.0 4.3 7.1
Balance at end of period $73.0 $73.0 $72.5 $75.0 $73.0
People's Bank and Subsidiaries
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
June March Dec. Sept. June
30, 31, 31, 30, 30,
(in millions) 2005 2005 2004 2004 2004
Consumer $0.9 $0.6 $0.7 $1.6 $2.2
Commercial - - 0.1 0.2 -
PCLC - 0.3 0.6 0.5 0.1
Commercial real estate finance - - 3.2 - -
Residential mortgage - (0.1) (0.1) - 0.1
Total $0.9 $0.8 $4.5 $2.3 $2.4
SOURCE People's Bank
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Related links:
http://www.peoples.com
Company News On-Call:
http://www.prnewswire.com/comp/113252.html
CONTACT:
Vincent J. Calabrese, Senior Vice President
and Controller, +1-203-338-4114, Fax: +1-203-338-2362,
vince.calabrese@peoples.com, or Valerie C. Carlson, Vice
President, Corporate Communications, +1-203-338-2351, Fax:
+1-203-338-3461, valerie.carlson@peoples.com, both for People's
Bank
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