Quarter Characterized by Strong Capital Position and Solid Asset
Quality
BRIDGEPORT, Conn., Oct. 16 /PRNewswire-FirstCall/ -- People's United
Financial, Inc. (Nasdaq: PBCT) today announced net income of $46.0 million,
or $0.14 per share, for the third quarter of 2008, compared to $43.0
million, or $0.13 per share, for the second quarter of 2008 and $57.6
million, or $0.20 per share, for the third quarter of 2007. Earnings for
the second and third quarters of 2008 reflect continued low levels of net
loan charge-offs and further benefit from previously announced
cost-reduction initiatives.
People's United Financial completed its acquisition of Chittenden
Corporation on January 1, 2008. Accordingly, People's United Financial's
third quarter 2007 results do not include the results of Chittenden
Corporation and are not directly comparable to the current quarter's
earnings.
For the third quarter of 2008, return on average tangible assets was
0.99 percent and return on average tangible stockholders' equity was 5.0
percent, compared to 0.91 percent and 4.7 percent, respectively, for the
second quarter of 2008.
The Board of Directors of People's United Financial declared a $0.15
per share quarterly dividend, payable November 15, 2008 to shareholders of
record on November 1, 2008. Based on the closing stock price on October 15,
2008, the dividend yield on People's United Financial common stock is 3.9
percent.
President and Chief Executive Officer, Philip R. Sherringham stated,
"Our strength and stability have clearly differentiated our bank in the
wake of the current economic and financial sector turmoil. Our performance
this quarter continues to be a reflection of our fortress balance sheet and
continued strong asset quality, and was further bolstered by an improvement
in the net interest margin."
Sherringham added, "We continue to generate healthy loan growth across
our core lending businesses. Our average commercial banking and home equity
loan portfolios increased $146 million, or 6 percent annualized, from the
second quarter of 2008."
Sherringham concluded, "We remain firmly committed to our goal of
enhancing our premier regional banking franchise. While our strategic focus
remains on growth through acquisitions, we continue to invest in our
commercial, retail banking and wealth management businesses throughout New
England. Our balance sheet continues to be funded almost entirely 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."
"Key drivers of the company's performance this quarter were an increase
in the net interest margin, expense control and ongoing strong asset
quality," said Paul D. Burner, Senior Executive Vice President and Chief
Financial Officer. "The 15 basis point improvement in the net interest
margin from the second quarter of 2008 reflects the benefits from
disciplined loan and deposit pricing. Non-interest expense decreased
slightly from the second quarter of 2008, primarily reflecting the
continued benefit from cost-savings initiatives announced earlier this
year."
At September 30, 2008, non-performing assets totaled $91.4 million, a
$5.0 million increase from June 30, 2008. Non-performing assets equaled
0.64 percent of total loans, REO and repossessed assets, compared to 0.60
percent at June 30, 2008. The allowance for loan losses as a percentage of
total loans increased to 1.08 percent at September 30, 2008 compared to
1.06 percent at June 30, 2008.
Third quarter net loan charge-offs totaled $4.0 million compared to
$2.4 million in the second quarter of 2008. Net loan charge-offs as a
percent of average loans on an annualized basis were 0.11 percent in the
third quarter of 2008 compared to 0.07 percent in this year's second
quarter. The provision for loan losses this quarter reflects a $2.8 million
increase in the allowance for loan losses to $154.5 million at September
30, 2008.
Commenting on asset quality, Burner 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 do not
see any pervasive weakness in any sector of the loan portfolio. The ratio
of non-performing loans to total loans was stable at 0.59 percent at
September 30, 2008 and net loan charge-offs remain extremely low. We feel
that the loan portfolio continues to benefit from our stringent
underwriting standards."
Conference Call
On October 17, 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.
Fourth Quarter Earnings Release
People's United Financial expects to release its fourth quarter and
full year 2008 earnings on January 22, 2009.
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.
3Q 2008 Financial Highlights
Summary
-- Net income totaled $46.0 million, or $0.14 per share.
-- Net interest income on a fully taxable equivalent basis totaled $160.8
million.
-- Net interest margin increased 15 basis points from 2Q08 to 3.71%.
-- Provision for loan losses totaled $6.8 million.
-- Net loan charge-offs totaled $4.0 million in 3Q08 compared to $2.4
million in 2Q08.
-- The allowance for loan losses was increased by $2.8 million in 3Q08
from 2Q08 levels.
-- Non-interest income totaled $74.2 million, a 1% increase from 2Q08.
-- Non-interest expense totaled $158.7 million, a $4.2 million, or 3%,
decrease from 2Q08.
-- Effective income tax rate was 32.9%.
Commercial Banking
-- Average commercial banking loans increased $73 million from 2Q08 to $8.9
billion.
-- Commercial banking non-performing assets totaled $64.3 million.
-- The ratio of commercial banking non-performing loans to total commercial
banking loans was 0.68% at September 30, 2008.
-- Net loan charge-offs totaled $2.5 million, or 0.11% annualized, of
average commercial banking loans.
Retail & Small Business Banking
-- Average residential mortgage loans totaled $3.4 billion.
-- Average home equity loans increased $73 million from 2Q08 to $1.8
billion.
-- Average indirect auto loans averaged $0.2 billion.
-- Home equity net loan charge-offs totaled $0.2 million, or 0.03%
annualized, of average home equity loans.
-- Indirect auto net loan charge-offs totaled $0.8 million, or 1.41%
annualized, of average indirect auto loans.
Wealth Management
-- Insurance revenue increased 9% from 2Q08, primarily reflecting seasonal
renewals.
-- Assets under management totaled $10 billion.
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.
(dollars in Three Months Ended
millions,
except per Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
share data) 2008 2008 2008 2007 2007
Operating Data:
Net interest income $159.8 $157.0 $166.3 $125.0 $134.3
Provision for loan
losses (1) 6.8 2.4 8.3 2.9 2.5
Non-interest income 74.2 73.4 82.3 46.1 50.2
Non-interest
expense (2) 158.7 162.9 219.2 100.0 95.5
Income from continuing
operations 46.0 43.0 15.1 45.7 57.3
Income from
discontinued
operations - - - 0.3 0.3
Net income 46.0 43.0 15.1 46.0 57.6
Selected
Statistical Data:
Net interest
margin (3) 3.71% 3.56% 3.67% 4.01% 4.28%
Return on average
assets (3) 0.92 0.84 0.29 1.37 1.70
Return on average
tangible assets (3) 0.99 0.91 0.31 1.38 1.72
Return on average
stockholders'
equity (3) 3.5 3.3 1.2 4.1 5.1
Return on average
tangible stockholders'
equity (3) 5.0 4.7 1.6 4.2 5.2
Efficiency ratio 64.9 66.3 65.0 57.4 52.8
Per Common
Share Data:
Diluted earnings
per share $0.14 $0.13 $0.05 $0.16 $0.20
Dividends paid per
share 0.15 0.15 0.13 0.13 0.13
Dividend payout
ratio 108.7% 116.1% 293.0% 83.2% 67.2%
Book value
(end of period) $15.65 $15.63 $15.70 $15.43 $15.60
Tangible
book value
(end of period) 11.06 11.00 11.08 15.07 15.24
Stock price:
High 21.76 18.52 18.25 18.60 18.62
Low 13.92 15.52 14.29 15.83 14.78
Close
(end of period) 19.25 15.60 17.31 17.80 17.28
Average
diluted common
shares outstanding
(in millions) 331.32 330.19 329.20 286.60 290.84
(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.
(3) Annualized.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
Nine Months Ended
Sept. 30, Sept. 30,
(dollars in millions,
except per share data) 2008 2007
Operating Data:
Net interest income $483.1 $361.6
Provision for loan losses (1) 17.5 5.1
Non-interest income 229.9 139.3
Non-interest expense (2) 540.8 339.3
Income from continuing operations 104.1 103.5
Income from discontinued operations,
net of tax - 1.2
Net income 104.1 104.7
Selected Statistical Data:
Net interest margin (3) 3.65% 4.16%
Return on average assets (3) 0.68 1.12
Return on average tangible assets (3) 0.73 1.12
Return on average stockholders' equity (3) 2.7 4.2
Return on average tangible stockholders'
equity (3) 3.8 4.4
Efficiency ratio 65.4 55.7
Per Common Share Data:
Diluted earnings per share $0.32 $0.36
Dividends paid per share 0.43 0.38
Dividend payout ratio 138.6% 88.7%
Book value (end of period) $15.65 $15.60
Tangible book value (end of period) 11.06 15.24
Stock price:
High 21.76 22.81
Low 13.92 14.78
Close (end of period) 19.25 17.28
Average diluted shares outstanding (in
millions) 330.22 294.14
(1) Includes a $4.5 million provision for the nine months ended September
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 $12.7 million for the nine months ended September 30, 2008, and
a $60.0 million contribution to The People's United Community Foundation
for the nine months ended September 30, 2007.
(3) Annualized.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
As of and for the Three Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
(dollars in millions) 2008 2008 2008 2007 2007
Financial Condition Data:
General:
Total assets $20,042 $20,392 $21,107 $13,555 $13,551
Loans 14,331 14,366 14,492 8,950 8,936
Short-term
investments (1) 2,534 2,265 2,756 3,516 3,550
Securities, net 428 866 976 61 66
Allowance for loan
losses 155 152 152 73 74
Goodwill and other
acquisition-related
intangibles 1,537 1,541 1,536 104 104
Deposits 14,152 14,532 15,160 8,881 8,782
Borrowings 152 144 148 - -
Subordinated notes 180 180 180 65 65
Stockholders' equity 5,239 5,211 5,219 4,445 4,534
Non-performing assets 91 86 67 26 26
Net loan charge-offs 4.0 2.4 2.8 3.7 1.5
Average Balances:
Loans $14,310 $14,425 $14,537 $8,869 $8,935
Short-term
investments(1) 2,325 2,433 2,666 3,551 3,536
Securities 715 907 1,020 64 69
Total earning
assets 17,350 17,765 18,223 12,484 12,540
Total assets 20,057 20,492 20,893 13,446 13,516
Deposits 14,193 14,613 14,952 8,753 8,781
Total funding
liabilities 14,520 14,939 15,296 8,818 8,846
Stockholders' equity 5,204 5,202 5,214 4,439 4,507
Ratios:
Net loan charge-offs to
average loans
(annualized) 0.11% 0.07% 0.08% 0.17% 0.07%
Non-performing assets
to total loans,
REO and repossessed
assets 0.64 0.60 0.46 0.29 0.29
Allowance for loan
losses to
non-performing
loans 182 183 244 358 318
Allowance for loan
losses to total
loans 1.08 1.06 1.05 0.81 0.82
Average stockholders'
equity to average
total assets 25.9 25.4 25.0 33.0 33.3
Stockholders' equity
to total assets 26.1 25.6 24.7 32.8 33.5
Tangible stockholders'
equity to tangible
assets 20.0 19.5 18.8 32.3 32.9
Total risk-based
capital (2) 16.7 17.8 24.7 33.4 35.3
(1) Includes securities purchased under agreements to resell.
(2) Capital ratios presented are for People's United Bank and, as such,
do not reflect the additional capital residing at People's United
Financial, Inc. People's United Bank's September 30, 2008 total
risk-based capital ratio is preliminary.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION
Sept. 30, June 30,
(in millions) 2008 2008
Assets
Cash and due from banks $437.5 $585.7
Short-term investments 2,533.5 1,865.1
Total cash and cash equivalents 2,971.0 2,450.8
Securities:
Trading account securities, at fair value 33.3 29.5
Securities available for sale, at fair value 393.5 835.3
Securities held to maturity, at amortized cost 1.4 1.4
Total securities 428.2 866.2
Securities purchased under agreements to resell - 400.0
Loans:
Residential mortgage 3,262.3 3,491.6
Commercial real estate 4,871.9 4,859.7
Commercial 4,074.3 3,987.3
Consumer 2,122.1 2,027.6
Total loans 14,330.6 14,366.2
Less allowance for loan losses (154.5) (151.7)
Total loans, net 14,176.1 14,214.5
Bank-owned life insurance 227.1 225.0
Premises and equipment, net 265.6 267.2
Goodwill and other acquisition-related
intangibles 1,536.9 1,541.3
Other assets 437.1 427.4
Total assets $20,042.0 $20,392.4
Liabilities
Deposits:
Non-interest-bearing $3,176.1 $3,340.3
Savings, interest-bearing checking and
money market 6,115.3 6,161.2
Time 4,860.4 5,030.0
Total deposits 14,151.8 14,531.5
Borrowings:
Federal Home Loan Bank advances 15.3 15.4
Repurchase agreements 117.6 109.7
Other 19.0 18.7
Total borrowings 151.9 143.8
Subordinated notes 180.2 179.8
Other liabilities 319.5 326.2
Total liabilities 14,803.4 15,181.3
Stockholders' Equity
Common stock ($0.01 par value; 1.95 billion
shares authorized; 347.8 million shares and
346.7 million shares issued) 3.5 3.5
Additional paid-in capital 4,475.6 4,449.7
Retained earnings 1,037.6 1,041.8
Treasury stock, at cost (3.2 million shares and
3.3 million shares) (58.0) (60.6)
Accumulated other comprehensive loss (15.9) (17.3)
Unallocated common stock of Employee Stock
Ownership Plan (204.2) (206.0)
Total stockholders' equity 5,238.6 5,211.1
Total liabilities and stockholders' equity $20,042.0 $20,392.4
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Sept. June March Dec. Sept.
(in millions, except per 30, 30, 31, 31, 30,
share data) 2008 2008 2008 2007 2007
Interest and dividend income:
Residential mortgage $45.4 $48.4 $52.9 $43.2 $44.6
Commercial real estate 75.2 74.5 78.0 31.8 32.0
Commercial 56.8 57.1 60.8 42.3 42.7
Consumer 27.2 26.8 31.1 21.0 22.5
Total interest on loans 204.6 206.8 222.8 138.3 141.8
Short-term investments 12.5 9.4 18.9 26.0 28.6
Securities 4.8 7.4 10.1 0.9 0.9
Securities purchased under
agreements to resell 0.5 3.9 3.1 15.5 18.1
Total interest and
dividend income 222.4 227.5 254.9 180.7 189.4
Interest expense:
Deposits 58.0 65.8 83.7 54.0 53.5
Borrowings 0.8 0.9 1.1 - -
Subordinated notes 3.8 3.8 3.8 1.7 1.6
Total interest expense 62.6 70.5 88.6 55.7 55.1
Net interest income 159.8 157.0 166.3 125.0 134.3
Provision for loan losses 6.8 2.4 8.3 2.9 2.5
Net interest income after
provision for loan losses 153.0 154.6 158.0 122.1 131.8
Non-interest income:
Investment management fees 8.9 9.5 8.8 3.1 3.0
Insurance revenue 8.8 8.1 9.1 6.2 7.1
Brokerage commissions 4.1 4.2 4.5 3.4 3.2
Total wealth management 21.8 21.8 22.4 12.7 13.3
Bank service charges 33.1 32.4 30.7 23.7 23.7
Merchant interchange fees 7.5 7.1 6.4 - -
Bank-owned life insurance 2.1 1.7 3.0 3.1 2.3
Net security gains (losses) (0.2) (0.2) 8.5 - 5.5
Net gains on sales of
residential mortgage loans 1.5 2.2 2.0 0.6 0.8
Other non-interest income 8.4 8.4 9.3 6.0 4.6
Total non-interest income 74.2 73.4 82.3 46.1 50.2
Non-interest expense:
Compensation and benefits 85.6 86.7 89.1 56.3 53.1
Occupancy and equipment 26.1 26.1 31.6 17.1 17.3
Professional and outside
service fees 11.9 11.8 11.5 8.5 7.4
Amortization of other
acquisition-related
intangibles 5.3 5.3 5.2 0.2 0.3
Merger-related expenses - - 36.5 - -
Other non-interest expense 29.8 33.0 45.3 17.9 17.4
Total non-interest expense 158.7 162.9 219.2 100.0 95.5
Income from continuing
operations before income tax
expense 68.5 65.1 21.1 68.2 86.5
Income tax expense 22.5 22.1 6.0 22.5 29.2
Income from continuing
operations 46.0 43.0 15.1 45.7 57.3
Discontinued operations:
Income from discontinued
operations, net of tax - - - 0.3 0.3
Net income $46.0 $43.0 $15.1 $46.0 $57.6
Diluted earnings per
common share:
Income from continuing
operations $0.14 $0.13 $0.05 $0.16 $0.20
Income from discontinued
operations - - - - -
Net income 0.14 0.13 0.05 0.16 0.20
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
Sept. 30, Sept. 30,
(in millions, except per share data) 2008 2007
Interest and dividend income:
Residential mortgage $146.7 $140.7
Commercial real estate 227.7 95.9
Commercial 174.7 125.3
Consumer 85.1 67.9
Total interest on loans 634.2 429.8
Short-term investments 40.8 60.7
Securities 22.3 3.0
Securities purchased under
agreements to resell 7.5 32.8
Total interest and dividend income 704.8 526.3
Interest expense:
Deposits 207.5 159.6
Borrowings 2.8 0.2
Subordinated notes 11.4 4.9
Total interest expense 221.7 164.7
Net interest income 483.1 361.6
Provision for loan losses 17.5 5.1
Net interest income after provision
for loan losses 465.6 356.5
Non-interest income:
Investment management fees 27.2 8.9
Insurance revenue 26.0 20.6
Brokerage commissions 12.8 10.3
Total wealth management 66.0 39.8
Bank service charges 96.2 69.5
Merchant interchange fees 21.0 -
Bank-owned life insurance 6.8 7.4
Net security gains 8.1 5.5
Net gains on sales of residential
mortgage loans 5.7 2.4
Other non-interest income 26.1 14.7
Total non-interest income 229.9 139.3
Non-interest expense:
Compensation and benefits 261.4 159.3
Occupancy and equipment 83.8 50.0
Contribution to The People's United
Community Foundation - 60.0
Professional and outside service fees 35.2 20.3
Amortization of other
acquisition-related intangibles 15.8 0.8
Merger-related expenses 36.5 -
Other non-interest expense 108.1 48.9
Total non-interest expense 540.8 339.3
Income from continuing operations before
income tax expense 154.7 156.5
Income tax expense 50.6 53.0
Income from continuing operations 104.1 103.5
Discontinued operations:
Income from discontinued
operations, net of tax - 1.2
Net income $104.1 $104.7
Diluted earnings per common share:
Income from continuing operations $0.32 $0.36
Income from discontinued operations - -
Net income 0.32 0.36
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2008
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Assets:
Short-term investments $2,235.3 $12.5 2.24%
Securities purchased under
agreements to resell 89.6 0.5 2.05
Securities (2) 714.9 4.8 2.72
Loans:
Residential mortgage 3,360.5 45.4 5.40
Commercial real estate 4,837.1 76.2 6.29
Commercial 4,035.3 56.8 5.63
Consumer 2,076.9 27.2 5.25
Total loans 14,309.8 205.6 5.75
Total earning assets 17,349.6 $223.4 5.15%
Other assets 2,707.4
Total assets $20,057.0
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing $3,137.6 $- -%
Savings, interest-bearing checking
and money market 6,170.7 18.2 1.18
Time 4,884.6 39.8 3.26
Total deposits 14,192.9 58.0 1.63
Borrowings:
Federal Home Loan Bank advances 15.3 0.2 5.31
Repurchase agreements 113.5 0.4 1.65
Federal funds purchased/Other 18.0 0.2 3.79
Total borrowings 146.8 0.8 2.29
Subordinated notes 180.0 3.8 8.41
Total funding liabilities 14,519.7 $62.6 1.73%
Other liabilities 333.1
Total liabilities 14,852.8
Stockholders' equity 5,204.2
Total liabilities and stockholders'
equity $20,057.0
Excess of earning assets
over funding liabilities $2,829.9
Net interest income/spread (3) $160.8 3.42%
Net interest margin 3.71%
(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 $1.0 million and $0.9 million for the three
months ended September 30, 2008 and June 30, 2008, respectively (none for
the three months ended September 30, 2007).
June 30, 2008
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Assets:
Short-term investments $1,663.1 $9.4 2.25%
Securities purchased under
agreements to resell 769.7 3.9 2.05
Securities (2) 907.3 7.4 3.25
Loans:
Residential mortgage 3,629.3 48.4 5.34
Commercial real estate 4,798.5 75.4 6.28
Commercial 4,000.5 57.1 5.71
Consumer 1,997.0 26.8 5.37
Total loans 14,425.3 207.7 5.76
Total earning assets 17,765.4 $228.4 5.14%
Other assets 2,726.8
Total assets $20,492.2
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing $3,172.4 $- -%
Savings, interest-bearing checking
and money market 6,219.5 19.0 1.22
Time 5,220.6 46.8 3.59
Total deposits 14,612.5 65.8 1.80
Borrowings:
Federal Home Loan Bank advances 16.0 0.2 5.22
Repurchase agreements 110.9 0.5 1.71
Federal funds purchased/Other 19.5 0.2 3.93
Total borrowings 146.4 0.9 2.39
Subordinated notes 179.6 3.8 8.42
Total funding liabilities 14,938.5 $70.5 1.89%
Other liabilities 351.9
Total liabilities 15,290.4
Stockholders' equity 5,201.8
Total liabilities and stockholders'
equity $20,492.2
Excess of earning assets
over funding liabilities $2,826.9
Net interest income/spread (3) $157.9 3.25%
Net interest margin 3.56%
(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 $1.0 million and $0.9 million for the three
months ended September 30, 2008 and June 30, 2008, respectively (none for
the three months ended September 30, 2007).
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2007
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Assets:
Short-term investments $2,157.6 $28.6 5.30%
Securities purchased under
agreements to resell 1,378.8 18.1 5.25
Securities (2) 68.8 0.9 5.55
Loans:
Residential mortgage 3,434.7 44.6 5.20
Commercial real estate 1,777.2 32.0 7.20
Commercial 2,471.2 42.7 6.92
Consumer 1,251.8 22.5 7.17
Total loans 8,934.9 141.8 6.35
Total earning assets 12,540.1 $189.4 6.04%
Other assets 975.6
Total assets $13,515.7
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing $2,098.2 $- -%
Savings, interest-bearing checking
and money market 3,083.1 12.0 1.56
Time 3,599.6 41.5 4.61
Total deposits 8,780.9 53.5 2.44
Borrowings:
Federal Home Loan Bank advances - - -
Repurchase agreements - - -
Federal funds purchased/Other - - -
Total borrowings - - -
Subordinated notes 65.3 1.6 10.15
Total funding liabilities 8,846.2 $55.1 2.49%
Other liabilities 162.5
Total liabilities 9,008.7
Stockholders' equity 4,507.0
Total liabilities and stockholders'
equity $13,515.7
Excess of earning assets
over funding liabilities $3,693.9
Net interest income/spread (3) $134.3 3.55%
Net interest margin 4.28%
(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 $1.0 million and $0.9 million for the three
months ended September 30, 2008 and June 30, 2008, respectively (none for
the three months ended September 30, 2007).
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2008
Nine months ended Average Interest Yield/
(dollars in millions) Balance Rate
Assets:
Short-term investments $2,059.8 $40.8 2.64%
Securities purchased
under agreements to
resell 414.3 7.5 2.43
Securities (2) 880.1 22.3 3.39
Loans:
Residential mortgage 3,630.7 146.7 5.39
Commercial real estate 4,795.2 230.6 6.41
Commercial 3,979.3 174.7 5.85
Consumer 2,018.4 85.1 5.62
Total loans 14,423.6 637.1 5.89
Total earning assets 17,777.8 $707.7 5.31%
Other assets 2,701.4
Total assets $20,479.2
Liabilities and
stockholders' equity:
Deposits:
Non-interest-bearing $3,151.9 $- -%
Savings,
interest-bearing
checking and money
market 6,224.1 61.9 1.33
Time 5,208.3 145.6 3.73
Total deposits 14,584.3 207.5 1.90
Borrowings:
Federal Home Loan Bank
advances 16.6 0.6 5.11
Repurchase agreements 113.5 1.7 2.00
Federal funds
purchased/Other 20.3 0.5 3.03
Total borrowings 150.4 2.8 2.48
Subordinated notes 181.8 11.4 8.32
Total funding
liabilities 14,916.5 $221.7 1.98%
Other liabilities 355.9
Total liabilities 15,272.4
Stockholders' equity 5,206.8
Total liabilities and
stockholders' equity $20,479.2
Excess of earning
assets over funding
liabilities $2,861.3
Net interest
income/spread (3) $486.0 3.33%
Net interest margin 3.65%
(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 $2.9 million for the nine months ended
September 30, 2008 (none for the nine months ended September 30, 2007).
September 30, 2007
Nine months ended Average Interest Yield/
(dollars in millions) Balance Rate
Assets:
Short-term investments $1,534.8 $60.7 5.27%
Securities purchased
under agreements to
resell 836.3 32.8 5.24
Securities (2) 70.9 3.0 5.62
Loans:
Residential mortgage 3,641.7 140.7 5.15
Commercial real estate 1,797.0 95.9 7.11
Commercial 2,420.4 125.3 6.90
Consumer 1,275.9 67.9 7.09
Total loans 9,135.0 429.8 6.27
Total earning assets 11,577.0 $526.3 6.06%
Other assets 940.2
Total assets $12,517.2
Liabilities and
stockholders' equity:
Deposits:
Non-interest-bearing $2,131.6 $- -%
Savings,
interest-bearing
checking and money
market 3,249.7 36.4 1.49
Time 3,617.2 123.2 4.54
Total deposits 8,998.5 159.6 2.36
Borrowings:
Federal Home Loan Bank
advances 0.2 - 5.02
Repurchase agreements - - -
Federal funds
purchased/Other 4.4 0.2 5.19
Total borrowings 4.6 0.2 5.19
Subordinated notes 65.3 4.9 10.15
Total funding
liabilities 9,068.4 $164.7 2.42%
Other liabilities 162.5
Total liabilities 9,230.9
Stockholders' equity 3,286.3
Total liabilities and
stockholders' equity $12,517.2
Excess of earning
assets over funding
liabilities $2,508.6
Net interest
income/spread (3) $361.6 3.64%
Net interest margin 4.16%
(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 $2.9 million for the nine months ended
September 30, 2008 (none for the nine months ended September 30, 2007).
People's United Financial, Inc.
NON-PERFORMING ASSETS
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(dollars in millions) 2008 2008 2008 2007 2007
Non-accrual loans:
Commercial real estate $29.9 $31.9 $27.8 $3.7 $3.5
Commercial 23.9 23.4 12.8 1.3 7.2
Residential mortgage 21.1 18.3 15.0 8.9 7.2
PCLC 6.9 6.4 2.7 3.1 3.0
Consumer lending 3.2 3.1 3.8 3.3 2.2
Indirect auto lending 0.1 - - - -
Total non-accrual
loans (1) 85.1 83.1 62.1 20.3 23.1
Real estate owned
("REO") and
repossessed assets, net 6.3 3.3 4.9 5.8 3.1
Total non-performing
assets $91.4 $86.4 $67.0 $26.1 $26.2
Non-performing loans as a
percentage of total loans 0.59% 0.58% 0.43% 0.23% 0.26%
Non-performing assets as a
percentage of:
Total loans, REO and
repossessed assets 0.64 0.60 0.46 0.29 0.29
Stockholders' equity and
allowance for loan losses 1.70 1.61 1.25 0.58 0.57
(1) Reported net of government guarantees totaling $6.4 million at
September 30, 2008, $6.6 million at June 30, 2008 and $5.0 million at
March 31, 2008 (none for prior periods).
PROVISION AND ALLOWANCE FOR LOAN LOSSES
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(in millions) 2008 2008 2008 2007 2007
Balance at beginning of
period $151.7 $151.7 $72.7 $73.5 $72.5
Charge-offs (5.0) (3.6) (3.7) (4.1) (2.0)
Recoveries 1.0 1.2 0.9 0.4 0.5
Net loan charge-offs (4.0) (2.4) (2.8) (3.7) (1.5)
Provision for loan losses 6.8 2.4 8.3 2.9 2.5
Allowance recorded
in the Chittenden
acquisition - - 73.5 - -
Balance at end of period $154.5 $151.7 $151.7 $72.7 $73.5
Allowance for loan
losses as a percentage
of:
Total loans 1.08% 1.06% 1.05% 0.81% 0.82%
Non-performing loans 182 183 244 358 318
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(in millions) 2008 2008 2008 2007 2007
Commercial real estate $1.2 $0.5 $- $- $(0.1)
Commercial 1.1 0.8 1.2 2.5 0.5
Indirect auto lending 0.8 0.3 0.4 - -
Consumer lending 0.6 0.7 0.6 0.6 0.5
PCLC 0.2 0.1 0.4 0.6 0.6
Residential mortgage 0.1 - 0.2 - -
Total $4.0 $2.4 $2.8 $3.7 $1.5
Net loan charge-offs to
average loans (annualized) 0.11% 0.07% 0.08% 0.17% 0.07%
SOURCE People?s United Financial, Inc.
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Related links:
http://www.peoples.com
CONTACT:
INVESTOR CONTACT, Jared Shaw, Investor
Relations, +1-203-338-4130, Jared.Shaw@peoples.com, or MEDIA
CONTACT, Brent DiGiorgio, Corporate Communications,
+1-203-338-3135, Brent.DiGiorgio@peoples.com, both of People's
United Financial
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