Increase of 239 Percent Over Prior Year
BRIDGEPORT, Conn., Oct. 17 /PRNewswire-FirstCall/ -- People's United
Financial, Inc. (Nasdaq: PBCT), a $14 billion diversified financial
services company, today announced net income of $57.6 million, or $0.20 per
share, for the third quarter of 2007, compared to $17.0 million, or $0.06
per share, for the third quarter of 2006. The prior year quarter's results
included an after- tax loss of $15.7 million, or $0.05 per share, from the
sale of securities.
For the third quarter of 2007, return on average assets was 1.70
percent and return on average stockholders' equity was 5.1 percent,
compared to 0.63 percent and 5.1 percent, respectively, for the year-ago
quarter.
President and Chief Executive Officer, John A. Klein stated, "Our
performance this quarter continues to reflect the benefits from our focused
commercial and consumer banking strategy, including strong asset quality,
particularly noteworthy in today's environment."
"Our average commercial banking loan portfolio increased over $300
million, or 8 percent, since the third quarter of 2006, including a $205
million, or 29 percent, increase in our equipment financing portfolio,"
added Klein. "In addition, our balance sheet continues to be funded by core
deposits and stockholders' equity."
Klein added, "Given the many challenges of today's environment, the
strength of our asset quality, capital, liquidity and earnings clearly sets
us apart from most in the industry."
Klein concluded, "At current levels, we feel strongly that our stock is
undervalued and we remain committed to begin a stock buyback program as
soon as possible following the closing of the Chittenden acquisition."
"Key drivers of the company's performance this quarter were yet another
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 39 basis point improvement in the
net interest margin reflects the benefits from the investment of the net
proceeds from our second-step conversion in April and the balance sheet
restructuring activities completed during 2006."
Sherringham continued, "Average earning assets increased $2.7 billion
on a year-over-year basis, reflecting a $3.4 billion increase in average
short-term investments as a result of the second-step conversion, while
average loans decreased $148 million, or 2 percent, and average securities
declined $600 million, or 90 percent. While average commercial banking
loans increased 8 percent on a year-over-year basis, average residential
mortgage loans actually declined 11 percent as a result of our decision in
the fourth quarter of last year to sell all newly-originated residential
mortgage loans in the current environment."
Commenting on asset quality, Sherringham stated, "As we have said many
times in the past, our loan portfolio has absolutely no sub-prime or Alt-A
exposure. Our asset quality remains very strong. Third quarter net loan
charge-offs totaled $1.5 million compared to $4.1 million in the year-ago
quarter. Net loan charge-offs as a percent of average loans on an
annualized basis were 0.07 percent in the third quarter of 2007, compared
to 0.18 percent in the third quarter of last year."
At September 30, 2007, non-performing assets totaled $26.2 million, a
$3.3 million increase from the prior year. Non-performing assets equaled
0.29 percent of total loans, REO and repossessed assets, compared to 0.25
percent at September 30, 2006. The allowance for loan losses as a
percentage of non- performing loans was 318 percent at September 30, 2007,
compared to 355 percent at September 30, 2006. The allowance for loan
losses as a percentage of total loans was 0.82 percent at September 30,
2007, compared to 0.81 percent a year ago.
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 funds from People's United Financial's stock 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 (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 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 October 18, 2007, at 3 p.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.
3Q Financial Highlights (3Q 2007 compared with 3Q 2006 unless otherwise
indicated)
Summary
* Net income totaled $57.6 million, or $0.20 per share.
* Net interest income increased $38.1 million, or 40%.
-- Reflects the investment of $3.3 billion in net proceeds from the
second-step conversion.
-- Net interest margin increased 39 basis points from 3Q06 and
increased 5 basis points from 2Q07 to 4.28%.
* Provision for loan losses decreased $1.6 million.
-- Net loan charge-offs in 3Q07 totaled $1.5 million compared to $4.1
million in 3Q06 (which included a $4.0 million charge-off related to
one commercial banking loan).
-- The allowance for loan losses was increased by $1.0 million in 3Q07
from 2Q07 levels.
* Non-interest income, excluding net security gains and losses, increased
$1.0 million, or 2%.
-- Security gains in 3Q07 reflect the sale of the Bank's entire
holdings of MasterCard Incorporated Class B common stock.
* Non-interest expense increased $8.4 million, or 10%.
-- Compensation and benefits increased $1.8 million (3Q07 included $2.0
million of amortization expense related to the employee stock
ownership plan).
-- Occupancy and equipment increased $1.7 million, reflecting higher
rent and utility expenses.
-- Professional and outside service fees increased $1.6 million
primarily due to higher costs for information technology-related
projects.
-- Other non-interest expense increased $3.3 million, including $1.0
million relating to expenses tied to the rebranding of the bank.
Commercial Banking
* Average commercial banking loans grew $306 million, or 8%.
* Average commercial non-interest-bearing deposits totaled $885 million.
* Non-performing commercial banking assets totaled $16.6 million, a $2.8
million increase.
* The ratio of non-performing commercial banking loans to total
commercial banking loans was 0.32% at September 30, 2007, compared to
0.29% at both June 30, 2007 and September 30, 2006.
* Net loan charge-offs totaled $1.0 million, or 0.09% annualized, of
average commercial banking loans.
Consumer Financial Services
* Average residential mortgage loans decreased $404 million, or 11%.
* Average consumer non-interest-bearing deposits totaled $1.1 billion.
Treasury
* Average securities declined $600 million, or 90%.
* Average securities made up 1% of average earning assets compared to 7%
in 3Q06.
* Average short-term investments increased $3.4 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; (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.
Valerie C. Carlson
First Vice President, Corporate Communications
203.338.2351 Fax: 203.338.3461
valerie.carlson@peoples.com
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS
Three Months Ended
Sept. June March Dec. Sept.
(dollars in millions, except 30, 30, 31, 31, 30,
per share data) 2007 2007 2007 2006 2006
Operating Data:
Net interest income $134.3 $132.0 $95.3 $96.1 $96.2
Provision for loan losses 2.5 1.8 0.8 1.4 4.1
Fee-based revenues 38.7 38.5 37.8 39.5 38.2
Net security gains (losses) 5.5 - - - (23.2)
All other non-interest income 6.0 7.0 5.8 5.8 5.5
Non-interest expense (1) 95.5 155.7 88.1 85.6 87.1
Income from continuing
operations 57.3 13.1 33.1 38.7 16.9
Income from discontinued
operations 0.3 0.4 0.5 0.6 0.1
Net income 57.6 13.5 33.6 39.3 17.0
Selected Statistical Data:
Net interest margin (2) 4.28% 4.23% 3.94% 4.01% 3.89%
Return on average assets (2) 1.70 0.40 1.27 1.49 0.63
Return on average stockholders'
equity (2) 5.1 1.4 10.0 11.6 5.1
Efficiency ratio 52.8 53.3 62.6 59.7 61.5
Per Common Share Data: (3)
Diluted earnings per share $0.20 $0.05 $0.11 $0.13 $0.06
Dividends paid per share 0.13 0.13 0.12 0.12 0.12
Total dividend payout ratio 67.2% 286.4% 46.1% 39.3% 91.0%
Book value (end of period) $15.59 $15.50 $4.55 $4.49 $4.53
Tangible book value (end of
period) 15.23 15.14 4.20 4.14 4.17
Stock price:
High 18.62 21.38 22.81 21.62 19.60
Low 14.78 17.56 19.78 18.69 15.19
Close (end of period) 17.28 17.73 21.14 21.25 18.86
Average diluted shares
outstanding (in millions) (4) 290.84 292.38 299.26 299.20 298.93
(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 decreases from March 31, 2007 reflect 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
Nine Months Ended
(dollars in millions, except per Sept. 30, Sept. 30,
share data) 2007 2006
Operating Data:
Net interest income $361.6 $286.3
Provision for loan losses 5.1 2.0
Fee-based revenues 115.0 113.5
Net security gains (losses) 5.5 (27.2)
All other non-interest income 18.8 15.8
Non-interest expense (1) 339.3 261.3
Income from continuing operations 103.5 83.0
Income from discontinued
operations, net of tax 1.2 1.7
Net income 104.7 84.7
Selected Statistical Data:
Net interest margin (2) 4.16% 3.83%
Return on average assets (2) 1.12 1.04
Return on average stockholders' equity (2) 4.2 8.6
Efficiency ratio 55.7 61.9
Per Common Share Data: (3)
Diluted earnings per share $0.36 $0.28
Dividends paid per share 0.38 0.34
Total dividend payout ratio 88.7% 52.5%
Book value (end of period) $15.59 $4.53
Tangible book value (end of period) 15.23 4.17
Stock price:
High 22.81 19.60
Low 14.78 14.29
Close (end of period) 17.28 18.86
Average diluted shares outstanding
(in millions) (4) 294.14 298.59
(1) Includes a $60.0 million contribution to the People's United Community
Foundation for the nine months ended September 30, 2007. Without the
contribution, non-interest expense would have been $279.3 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 nine months ended September 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
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(dollars in millions) 2007 2007 2007 2006 2006
Financial Condition Data:
General:
Total assets $13,551 $13,822 $11,602 $10,687 $10,612
Loans 8,936 9,046 9,310 9,372 9,185
Securities, net 66 70 73 77 202
Allowance for loan losses 74 73 74 74 74
Deposits 8,782 9,091 9,968 9,083 8,979
Core deposits 8,728 9,054 9,281 9,040 8,932
Borrowings - - 8 4 14
Purchased funds 54 37 52 47 61
Subordinated notes 65 65 65 65 109
Stockholders' equity (1) 4,531 4,504 1,359 1,340 1,351
Non-performing assets 26 18 19 23 23
Net loan charge-offs 1.5 3.7 0.4 1.4 4.1
Average Balances:
Loans $8,935 $9,169 $9,305 $9,247 $9,083
Short-term investments 3,536 3,236 305 173 137
Securities 69 70 74 166 669
Earning assets 12,540 12,475 9,684 9,586 9,889
Total assets 13,516 13,399 10,601 10,553 10,778
Deposits 8,781 9,195 9,022 8,923 8,897
Funding liabilities 8,846 9,268 9,094 9,030 9,275
Stockholders' equity (1) 4,507 3,975 1,338 1,355 1,331
Ratios:
Net loan charge-offs to
average loans (annualized) 0.07% 0.16% 0.01% 0.06% 0.18%
Non-performing assets to
total loans, REO and
repossessed assets 0.29 0.20 0.21 0.24 0.25
Allowance for loan losses
to non-performing loans 318.2 404.8 389.4 327.9 354.9
Allowance for loan losses
to total loans 0.82 0.80 0.80 0.79 0.81
Average stockholders'
equity to average assets 33.3 29.7 12.6 12.8 12.3
Stockholders' equity to
total assets 33.4 32.6 11.7 12.5 12.7
Tier 1 leverage capital (2) 25.0 24.3 11.2 12.0 11.8
Tier 1 risk-based
capital (2) 34.0 33.9 14.7 14.8 14.7
Total risk-based
capital (2) 35.3 35.1 16.0 16.1 16.2
(1) The increases from March 31, 2007 primarily reflect 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) September 30, 2007 capital ratios are preliminary.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION
Sept. 30, June 30, Sept. 30,
(in millions) 2007 2007 2006
Assets
Cash and due from banks $304.2 $360.9 $355.8
Short-term investments 2,120.1 2,236.7 179.6
Total cash and cash equivalents 2,424.3 2,597.6 535.4
Securities:
Trading account securities,
at fair value 22.5 26.4 29.5
Securities available for sale, at
fair value 42.1 42.1 171.3
Securities held to maturity, at
amortized cost 1.1 1.1 1.1
Total securities 65.7 69.6 201.9
Securities purchased under agreements
to resell 1,430.0 1,418.0 -
Loans:
Residential mortgage 3,347.7 3,553.0 3,877.7
Commercial 2,518.0 2,451.3 2,197.4
Commercial real estate 1,822.7 1,784.1 1,799.3
Consumer 1,247.2 1,258.1 1,310.5
Total loans 8,935.6 9,046.5 9,184.9
Less allowance for loan losses (73.5) (72.5) (74.0)
Total loans, net 8,862.1 8,974.0 9,110.9
Bank-owned life insurance 219.4 218.0 211.2
Premises and equipment, net 151.4 147.4 134.1
Goodwill and other acquisition-
related intangibles 104.2 104.5 105.3
Other assets 293.4 292.6 313.3
Total assets $13,550.5 $13,821.7 $10,612.1
Liabilities
Deposits:
Non-interest-bearing $2,081.0 $2,302.8 $2,172.4
Savings, interest-bearing checking
and money market 3,003.5 3,194.4 3,286.1
Time 3,697.3 3,593.7 3,520.1
Total deposits 8,781.8 9,090.9 8,978.6
Borrowings:
Federal funds purchased - - 13.6
Total borrowings - - 13.6
Subordinated notes 65.3 65.3 108.8
Other liabilities 172.5 161.9 159.7
Total liabilities 9,019.6 9,318.1 9,260.7
Stockholders' Equity
Common stock ($0.01 par value; 1.95
billion shares authorized;
300.9 million shares and 300.9
million shares issued and
outstanding) 3.0 3.0 -
Common stock (without par value;
450.0 million shares authorized;
142.1 million shares issued and
outstanding) - - 142.1
Additional paid-in capital 3,707.6 3,708.9 177.8
Retained earnings 1,073.7 1,055.2 1,038.6
Unallocated common stock of Employee
Stock Ownership Plan (212.0) (214.4) -
Accumulated other comprehensive loss (41.4) (49.1) (7.1)
Total stockholders' equity 4,530.9 4,503.6 1,351.4
Total liabilities and
stockholders' equity $13,550.5 $13,821.7 $10,612.1
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(in millions, except per share data) 2007 2007 2007 2006 2006
Interest and dividend income:
Residential mortgage $44.6 $47.1 $49.0 $50.0 $47.7
Commercial 42.7 42.0 40.6 39.2 38.0
Commercial real estate 32.0 32.1 31.8 33.5 32.2
Consumer 22.5 22.5 22.9 23.5 23.0
Total interest on loans 141.8 143.7 144.3 146.2 140.9
Short-term investments 28.6 28.1 4.0 2.2 1.6
Securities purchased under
agreements to resell 18.1 14.7 - - 0.2
Securities 0.9 1.0 1.1 2.2 6.7
Total interest and dividend
income 189.4 187.5 149.4 150.6 149.4
Interest expense:
Deposits 53.5 53.8 52.3 52.1 47.1
Borrowings - 0.1 0.1 0.2 3.7
Subordinated notes 1.6 1.6 1.7 2.2 2.4
Total interest expense 55.1 55.5 54.1 54.5 53.2
Net interest income 134.3 132.0 95.3 96.1 96.2
Provision for loan losses 2.5 1.8 0.8 1.4 4.1
Net interest income after
provision for loan losses 131.8 130.2 94.5 94.7 92.1
Non-interest income:
Fee-based revenues:
Service charges on deposit
accounts 19.4 19.5 18.0 19.4 20.1
Insurance revenue 7.1 6.2 7.3 7.1 6.6
Brokerage commissions 3.2 3.6 3.4 3.0 2.9
Other fees 9.0 9.2 9.1 10.0 8.6
Total fee-based revenues 38.7 38.5 37.8 39.5 38.2
Net security gains (losses) 5.5 - - - (23.2)
Bank-owned life insurance 2.3 2.7 2.4 2.8 2.2
Net gains on sales of residential
mortgage loans 0.8 0.9 0.7 0.5 0.5
Other non-interest income 2.9 3.4 2.7 2.5 2.8
Total non-interest income 50.2 45.5 43.6 45.3 20.5
Non-interest expense:
Compensation and benefits 53.1 54.9 51.3 49.4 51.3
Occupancy and equipment 17.3 16.2 16.5 15.4 15.6
Contribution to the People's United
Community Foundation - 60.0 - - -
Professional and outside
service fees 7.4 6.7 6.2 6.5 5.8
Other non-interest expense 17.7 17.9 14.1 14.3 14.4
Total non-interest expense 95.5 155.7 88.1 85.6 87.1
Income from continuing operations
before income tax expense 86.5 20.0 50.0 54.4 25.5
Income tax expense 29.2 6.9 16.9 15.7 8.6
Income from continuing operations 57.3 13.1 33.1 38.7 16.9
Discontinued operations:
Income from discontinued
operations, net of tax 0.3 0.4 0.5 0.6 0.1
Income from discontinued
operations 0.3 0.4 0.5 0.6 0.1
Net income $57.6 $13.5 $33.6 $39.3 $17.0
Diluted earnings per common share:
Income from continuing operations $0.20 $0.05 $0.11 $0.13 $0.05
Income from discontinued operations - - - - 0.01
Net income 0.20 0.05 0.11 0.13 0.06
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
Sept. 30, Sept. 30,
(in millions, except per share data) 2007 2006
Interest and dividend income:
Residential mortgage $140.7 $135.2
Commercial 125.3 107.3
Commercial real estate 95.9 92.5
Consumer 67.9 64.8
Total interest on loans 429.8 399.8
Short-term investments 60.7 3.1
Securities purchased under
agreements to resell 32.8 0.8
Securities 3.0 27.8
Total interest and dividend income 526.3 431.5
Interest expense:
Deposits 159.6 128.0
Borrowings 0.2 9.8
Subordinated notes 4.9 7.4
Total interest expense 164.7 145.2
Net interest income 361.6 286.3
Provision for loan losses 5.1 2.0
Net interest income after
provision for loan losses 356.5 284.3
Non-interest income:
Fee-based revenues:
Service charges on deposit accounts 56.9 58.4
Insurance revenue 20.6 20.2
Brokerage commissions 10.2 9.2
Other fees 27.3 25.7
Total fee-based revenues 115.0 113.5
Bank-owned life insurance 7.4 6.3
Net security gains (losses) 5.5 (27.2)
Net gains on sales of residential
mortgage loans 2.4 1.5
Other non-interest income 9.0 8.0
Total non-interest income 139.3 102.1
Non-interest expense:
Compensation and benefits 159.3 153.5
Occupancy and equipment 50.0 46.8
Contribution to the People's United
Community Foundation 60.0 -
Professional and outside service fees 20.3 17.8
Other non-interest expense 49.7 43.2
Total non-interest expense 339.3 261.3
Income from continuing operations
before income tax expense 156.5 125.1
Income tax expense 53.0 42.1
Income from continuing operations 103.5 83.0
Discontinued operations:
Income from discontinued
operations, net of tax 1.2 1.7
Income from discontinued operations 1.2 1.7
Net income $104.7 $84.7
Diluted earnings per common share:
Income from continuing operations $0.36 $0.27
Income from discontinued operations - 0.01
Net income 0.36 0.28
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2007 June 30, 2007
Three months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $2,157.6 $28.6 5.30% $2,121.4 $28.1 5.30%
Securities purchased
under
agreements to resell 1,378.8 18.1 5.25 1,115.0 14.7 5.29
Securities (2) 68.8 0.9 5.55 70.1 1.0 5.59
Loans:
Residential mortgage 3,434.7 44.6 5.20 3,666.5 47.1 5.14
Commercial 2,471.2 42.7 6.92 2,425.1 42.0 6.93
Commercial real
estate 1,777.2 32.0 7.20 1,806.1 32.1 7.11
Consumer 1,251.8 22.5 7.17 1,271.2 22.5 7.08
Total loans 8,934.9 141.8 6.35 9,168.9 143.7 6.27
Total earning
assets $12,540.1 $189.4 6.04% $12,475.4 $187.5 6.01%
Funding liabilities:
Deposits:
Non-interest-bearing $2,098.2 $- -% $2,171.6 $- -%
Savings, interest-
bearing checking
and money market 3,075.1 11.9 1.55 3,214.3 12.0 1.49
Time 3,590.3 41.5 4.62 3,627.9 41.4 4.57
Total core deposits 8,763.6 53.4 2.44 9,013.8 53.4 2.37
Non-core deposits (3) 17.3 0.1 3.07 181.3 0.4 0.82
Total deposits 8,780.9 53.5 2.44 9,195.1 53.8 2.34
Borrowings:
Federal funds
purchased - - - 7.7 0.1 5.17
Federal Home Loan
Bank advances - - - - - -
Total borrowings - - - 7.7 0.1 5.17
Subordinated notes 65.3 1.6 10.15 65.3 1.6 10.15
Total funding
liabilities $8,846.2 $55.1 2.49% $9,268.1 $55.5 2.40%
Excess of earning
assets over funding
liabilities $3,693.9 $3,207.3
Net interest
income/spread $134.3 3.55% $132.0 3.61%
Net interest margin 4.28% 4.23%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
(3) The average balance for the three months ended June 30, 2007 included
$168.9 million in average escrow funds related to People's United
Financial, Inc.'s stock offering.
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2006
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Earning assets:
Short-term investments $120.5 $1.6 5.30%
Securities purchased under
agreements to resell 16.9 0.2 5.03
Securities (2) 668.5 6.7 4.00
Loans:
Residential mortgage 3,838.3 47.7 4.98
Commercial 2,157.0 38.0 7.03
Commercial real estate 1,785.1 32.2 7.22
Consumer 1,302.5 23.0 7.08
Total loans 9,082.9 140.9 6.21
Total earning assets $9,888.8 $149.4 6.04%
Funding liabilities:
Deposits:
Non-interest-bearing $2,136.5 $- -%
Savings, interest-bearing checking
and money market 3,376.9 12.5 1.48
Time 3,367.7 34.3 4.07
Total core deposits 8,881.1 46.8 2.11
Non-core deposits (3) 16.4 0.3 8.28
Total deposits 8,897.5 47.1 2.12
Borrowings:
Federal funds purchased 147.0 2.0 5.37
Federal Home Loan Bank advances 121.5 1.7 5.39
Total borrowings 268.5 3.7 5.38
Subordinated notes 108.7 2.4 9.03
Total funding liabilities $9,274.7 $53.2 2.29%
Excess of earning assets
over funding liabilities $614.1
Net interest income/spread $96.2 3.75%
Net interest margin 3.89%
(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 average balance for the three months ended June 30, 2007 included
$168.9 million in average escrow funds related to People's United
Financial, Inc.'s stock offering.
People's United Financial, Inc.
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2007 September 30, 2006
Nine months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $1,534.8 $60.7 5.27% $84.1 $3.1 4.87%
Securities purchased
under agreements to
resell 836.3 32.8 5.24 22.2 0.8 4.97
Securities (2) 70.9 3.0 5.62 1,018.7 27.8 3.64
Loans:
Residential mortgage 3,641.7 140.7 5.15 3,708.2 135.2 4.86
Commercial 2,420.4 125.3 6.90 2,104.6 107.3 6.80
Commercial real
estate 1,797.0 95.9 7.11 1,755.9 92.5 7.02
Consumer 1,275.9 67.9 7.09 1,278.5 64.8 6.76
Total loans 9,135.0 429.8 6.27 8,847.2 399.8 6.03
Total earning
assets $11,577.0 $526.3 6.06% $9,972.2 $431.5 5.77%
Funding liabilities:
Deposits:
Non-interest-bearing $2,131.7 $- -% $2,187.4 $- -%
Savings, interest-
bearing checking and
money market 3,157.0 35.7 1.51 3,549.8 36.8 1.38
Time 3,612.0 123.2 4.54 3,215.3 89.2 3.70
Total core deposits 8,900.7 158.9 2.38 8,952.5 126.0 1.88
Non-core deposits (3) 97.8 0.7 0.99 49.4 2.0 5.53
Total deposits 8,998.5 159.6 2.36 9,001.9 128.0 1.90
Borrowings:
Federal funds
purchased 4.4 0.2 5.19 207.2 7.4 4.76
Federal Home Loan
Bank advances 0.2 - 5.02 63.2 2.4 5.13
Total borrowings 4.6 0.2 5.19 270.4 9.8 4.84
Subordinated notes 65.3 4.9 10.15 108.7 7.4 9.04
Total funding
liabilities $9,068.4 $164.7 2.42% $9,381.0 $145.2 2.06%
Excess of earning
assets over funding
liabilities $2,508.6 $591.2
Net interest
income/spread $361.6 3.64% $286.3 3.71%
Net interest margin 4.16% 3.83%
(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 average balance for the nine months ended September 30, 2007
includes $84.0 million in average escrow funds related to People's
United Financial, Inc.'s stock offering (none at September 30, 2007).
People's United Financial, Inc.
NON-PERFORMING ASSETS
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(dollars in millions) 2007 2007 2007 2006 2006
Non-accrual loans:
Commercial $7.2 $8.2 $11.3 $11.9 $3.0
Residential mortgage 7.2 4.2 5.0 6.7 7.8
Commercial real estate 3.5 0.1 0.1 0.2 6.6
PCLC 3.0 3.9 1.4 2.1 2.1
Consumer 2.2 1.5 1.3 1.7 1.3
Total non-accrual loans 23.1 17.9 19.1 22.6 20.8
Real estate owned ("REO") and
repossessed assets, net 3.1 0.5 0.3 0.1 2.1
Total non-performing assets $26.2 $18.4 $19.4 $22.7 $22.9
Non-performing loans as a percentage of
total loans 0.26% 0.20% 0.21% 0.24% 0.23%
Non-performing assets as a percentage
of total loans, REO and repossessed
assets 0.29 0.20 0.21 0.24 0.25
Non-performing assets as a percentage
of stockholders' equity and allowance
for loan losses 0.57 0.40 1.35 1.61 1.61
Allowance for loan losses as a
percentage of non-performing loans 318.2 404.8 389.4 327.9 354.9
Allowance for loan losses as a
percentage of total loans 0.82 0.80 0.80 0.79 0.81
People's United Financial, Inc.
ALLOWANCE FOR LOAN LOSSES
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(in millions) 2007 2007 2007 2006 2006
Balance at beginning of period $72.5 $74.4 $74.0 $74.0 $74.0
Charge-offs (2.0) (4.6) (0.8) (2.0) (4.7)
Recoveries 0.5 0.9 0.4 0.6 0.6
Net loan charge-offs (1.5) (3.7) (0.4) (1.4) (4.1)
Provision for loan losses 2.5 1.8 0.8 1.4 4.1
Balance at end of period $73.5 $72.5 $74.4 $74.0 $74.0
People's United Financial, Inc.
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(in millions) 2007 2007 2007 2006 2006
PCLC $0.6 $0.4 $0.1 $- $-
Consumer 0.5 0.2 0.3 0.6 0.3
Commercial 0.5 3.7 - 0.8 3.9
Residential mortgage - (0.6) - - (0.1)
Commercial real estate (0.1) - - - -
Total $1.5 $3.7 $0.4 $1.4 $4.1
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 of People's United Financial, Inc.,
+1-203-338-2351, or fax, +1-203-338-3461,
valerie.carlson@peoples.com
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