BRIDGEPORT, Conn., Oct. 19 /PRNewswire-FirstCall/ -- People's Bank
(Nasdaq: PBCT), an $11 billion financial services company, today announced
net income of $17.0 million, or $0.12 per share, for the third quarter of
2006, compared to $33.5 million, or $0.24 per share, for the third quarter
of 2005. The current quarter's results include a previously-disclosed
after-tax loss of $15.7 million, or $0.11 per share, from the sale of
securities as part of further balance sheet restructuring activities.
Income from continuing operations for the third quarter of 2006 was
$16.9 million, or $0.11 per share, compared to $32.4 million, or $0.23 per
share, for the year-ago quarter. Income from continuing operations
excluding the loss on sale of securities would have been $32.6 million, a 1
percent increase from the year-ago period.
For the third quarter of 2006, return on average assets was 0.63
percent and return on average stockholders' equity was 5.1 percent,
compared to 1.24 percent and 10.7 percent, respectively, for the year-ago
quarter. Return on average assets would have been 1.21 percent for the
third quarter of 2006 excluding the loss on sale of securities.
People's Board of Directors declared a $0.25 per share quarterly
dividend on People's common stock, payable November 15, 2006, to
shareholders of record on November 1, 2006. People's Mutual Holdings, which
owns 82.0 million shares of People's Bank common stock, will accept
dividends on only 2.2 percent of its shares. Based on the closing stock
price on October 18, 2006, the dividend yield on People's Bank common stock
is 2.4 percent.
President and Chief Executive Officer John A. Klein stated, "The bank's
performance this quarter reflects another increase in the net interest
margin, our 12th consecutive increase. Our recent balance sheet
restructuring activities contributed, in part, to the current quarter's
margin increase. The year-over-year 19 basis point improvement in the net
interest margin also reflects the bank's asset-sensitive position and the
substitution of securities with higher-yielding loans."
Klein continued, "Our average commercial banking, home equity and
residential mortgage loan portfolios increased a combined $785 million, or
10 percent, since the third quarter of 2005, while average securities
declined $911 million, or 58 percent. Our commercial banking and home
equity loan portfolios each grew 8 percent, while our residential mortgage
loans grew 11 percent."
"As previously disclosed, we sold our entire debt securities portfolio
during the third quarter," said Philip R. Sherringham, Executive Vice
President and Chief Financial Officer. "The transaction involved $835
million in securities earning a weighted average yield of approximately
3.55 percent, which were sold at a $23.7 million pre-tax loss. The proceeds
from this transaction were used to pay down short-term borrowings with an
average cost of 5.25 percent and invest in short-term securities at current
market yields of 5.20 percent. Another benefit of this transaction is an
improvement in our efficiency ratio in the third quarter to 61.5 percent
from 62.2 percent in the third quarter of last year."
Commenting on asset quality, Sherringham added, "Third quarter net loan
charge-offs totaled $4.1 million, or 0.18 percent of average loans on an
annualized basis, compared to $1.1 million or 0.05 percent in the third
quarter of last year." Included in the third quarter of 2006 is a $4.0
million charge-off relating to one commercial banking loan that was placed
on non-accrual in the second quarter of 2006 as previously disclosed. This
charge-off reduced earnings by $2.7 million, or $0.02 per share, and return
on average assets by 10 basis points for the quarter. Other net loan
charge-offs for the third quarter of 2006 totaled $0.1 million, or 0.01
percent of average loans on an annualized basis.
At September 30, 2006, non-performing assets totaled $22.9 million, a
$5.2 million, or 19 percent, decrease from June 30, 2006. This reduction in
non-performing assets reflects a $5.5 million partial payment received on
one commercial banking non-performing loan and the $4.0 million charge-off
discussed above. Non-performing assets equaled 0.25 percent of total loans,
REO and repossessed assets, compared to 0.31 percent at June 30, 2006. The
allowance for loan losses as a percentage of non-performing loans was 355
percent at September 30, 2006, compared to 267 percent at June 30, 2006.
The allowance for loan losses as a percentage of total loans was 0.81
percent at September 30, 2006, compared to 0.82 percent at June 30, 2006.
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 generally considers an expense to be "nonrecurring" if it 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 and municipal deposits.
Conference Call
On October 20, 2006, 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" 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 Web site. The call will be
archived on the Web site and available for approximately 90 days.
3Q Financial Highlights (3Q 2006 compared with 3Q 2005 unless otherwise
indicated)
Summary
* Net income totaled $17.0 million, or $0.12 per share.
* Includes a $23.7 million pre-tax loss ($15.7 million after-tax) from
the sale of securities.
* Net interest income increased $3.7 million, or 4%.
* Net interest margin increased 19 basis points from 3Q05 and improved
7 basis points from 2Q06 to 3.89%.
* 3Q06 margin positively affected by 2 basis points due to the Federal
Home Loan Bank of Boston declaring and paying two dividends on its
stock this quarter.
* Provision for loan losses increased $3.0 million.
* Net loan charge-offs increased $3.0 million (3Q06 includes a
$4.0 million charge-off related to one commercial banking loan).
* Non-interest income, excluding net security losses, decreased
$0.8 million, or 2%.
* Other non-interest income in 3Q06 includes a $0.7 million net gain
from the sale of a corporate insurance account by R.C. Knox.
* Non-interest expense increased $0.9 million, or 1%.
Commercial Banking
* Average commercial banking loans grew $309 million, or 8%.
* Average commercial non-interest-bearing deposits totaled $937 million.
* The ratio of non-performing commercial banking loans to total commercial
banking loans was 0.29% at September 30, 2006, compared to 0.55% at
June 30, 2006.
* Non-performing loans decreased $10.1 million, or 46%, from
June 30, 2006.
* Net loan charge-offs totaled $3.9 million, or 0.40% annualized, of
average commercial banking loans.
Consumer Financial Services
* Average residential mortgage loans increased $382 million, or 11%.
* People's purchased $170 million of residential mortgage loans towards
the end of 1Q06.
* Average home equity loan portfolios increased $95 million, or 8%.
* Average consumer non-interest-bearing deposits totaled $1.1 billion.
Treasury
* Average securities declined $911 million, or 58%.
* Sold $835 million of securities in 3Q06, resulting in a $23.7 million
pre-tax loss ($23.4 million in net security losses and $0.3 million in
other non-interest expense).
* Transaction included $810 million of debt securities and $25 million
of securities purchased under agreements to resell.
* Securities made up 7% of average earning assets compared to 16%
in 3Q05.
* The debt securities portfolio totaled $147 million at
September 30, 2006, a $1.4 billion, or 90%, decrease from a year ago.
People's Bank is a diversified financial services company providing
consumer and commercial banking services, in addition to insurance, trust
and financial advisory services.
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
Sept. June March Dec. Sept.
(dollars in millions, except per 30, 30, 31, 31, 30,
share data) 2006 2006 2006 2005 2005
Operating Data:
Net interest income $96.2 $96.1 $94.0 $93.3 $92.5
Provision for loan losses 4.1 0.2 (2.3) 5.3 1.1
Fee-based revenues 38.2 37.5 37.8 39.8 39.6
Net security losses (23.2) (4.0) - - (0.1)
All other non-interest income(1) 5.5 5.7 4.6 12.3 5.0
Non-interest expense 87.1 86.6 87.6 90.5 86.2
Income from continuing
operations 16.9 32.2 33.9 34.3 32.4
Income from discontinued
operations 0.1 0.7 0.9 0.9 1.1
Net income 17.0 32.9 34.8 35.2 33.5
Selected Statistical Data:
Net interest margin(2) 3.89% 3.82% 3.77% 3.75% 3.70%
Return on average assets(2) 0.63 1.20 1.28 1.30 1.24
Return on average stockholders'
equity(2) 5.1 10.1 10.8 11.1 10.7
Efficiency ratio 61.5 61.7 62.3 62.3 62.2
Per Common Share Data:
Diluted earnings per share $0.12 $0.23 $0.24 $0.25 $0.24
Dividends paid per share(3) 0.25 0.25 0.22 0.22 0.22
Total dividend payout ratio(3) 91.0% 46.9% 39.0% 38.6% 40.3%
Book value (end of period) $9.51 $9.34 $9.21 $9.10 $8.95
Tangible book value (end of
period) 8.77 8.60 8.46 8.35 8.20
Stock price:
High 41.15 34.50 33.83 33.57 33.75
Low 31.89 30.87 30.00 28.85 28.17
Close (end of period) 39.61 32.85 32.75 31.06 28.98
Average diluted shares
outstanding (in millions) 142.34 142.18 142.04 141.96 141.88
(1) Includes an $8.1 million gain on sale of branches for the three
months ended December 31, 2005.
(2) Annualized.
(3) Reflects the waiver of dividends on the substantial majority of the
common shares owned by People's Mutual Holdings.
Nine Months Ended
(dollars in millions, except per Sept. 30, Sept. 30,
share data) 2006 2005
Operating Data:
Net interest income $286.3 $276.4
Provision for loan losses 2.0 3.3
Fee-based revenues 113.5 111.7
Net security losses (27.2) (0.1)
All other non-interest income 15.8 9.5
Non-interest expense 261.3 253.8
Income from continuing operations 83.0 91.6
Income from discontinued operations(1) 1.7 10.3
Net income 84.7 101.9
Selected Statistical Data:
Net interest margin(2) 3.83% 3.66%
Return on average assets(2) 1.04 1.26
Return on average stockholders' equity(2) 8.6 11.1
Efficiency ratio 61.9 62.8
Per Common Share Data:
Diluted earnings per share $0.59 $0.72
Dividends paid per share(3) 0.72 0.63
Total dividend payout ratio(3) 52.5% 38.2%
Book value (end of period) $9.51 $8.95
Tangible book value (end of period) 8.77 8.20
Stock price:
High 41.15 33.75
Low 30.00 23.99
Close (end of period) 39.61 28.98
Average diluted shares outstanding
(in millions) 142.18 141.69
(1) Includes an after-tax gain on sale of $6.2 million for the nine
months ended September 30, 2005 related to the sale of People's credit
card business in March 2004.
(2) Annualized.
(3) Reflects the waiver of dividends on the substantial majority of the
common shares owned by People's Mutual Holdings.
As of and for the Three Months Ended
Sept. June March Dec. Sept.
(dollars in millions) 30, 30, 31, 31, 30,
Financial Condition Data: 2006 2006 2006 2005 2005
General:
Total assets $10,612 $11,005 $11,081 $10,933 $10,891
Loans 9,185 9,034 8,759 8,573 8,383
Allowance for loan losses 74 74 74 75 73
Securities, net 202 901 1,258 1,363 1,498
Deposits 8,979 9,203 9,252 9,083 9,086
Core deposits 8,843 9,058 9,058 8,873 8,858
Borrowings 14 221 251 295 271
Purchased funds 61 270 360 424 404
Subordinated notes 109 109 109 109 122
Stockholders' equity 1,351 1,326 1,306 1,289 1,268
Non-performing assets 23 28 24 22 20
Net loan charge-offs
(recoveries) 4.1 0.2 (1.3) 3.3 1.1
Average Balances:
Loans $9,083 $8,898 $8,555 $8,438 $8,318
Securities 669 1,070 1,325 1,438 1,580
Earning assets 9,889 10,049 9,980 9,952 9,992
Total assets 10,778 10,939 10,865 10,800 10,849
Deposits 8,897 9,119 8,990 8,966 9,060
Funding liabilities 9,275 9,463 9,407 9,366 9,426
Stockholders' equity 1,331 1,308 1,292 1,273 1,253
Ratios:
Net loan charge-offs
(recoveries) to
average loans
(annualized) 0.18% 0.01% -0.06% 0.16% 0.05%
Non-performing assets to
total loans, REO and
repossessed assets 0.25 0.31 0.28 0.26 0.24
Allowance for loan losses
to non-performing loans 354.9 266.8 322.0 352.5 379.6
Allowance for loan losses
to total loans 0.81 0.82 0.84 0.87 0.87
Average stockholders'
equity to average assets 12.3 12.0 11.9 11.8 11.5
Stockholders' equity to
total assets 12.7 12.1 11.8 11.8 11.6
Tier 1 leverage capital(1) 11.8 11.5 11.4 11.2 11.0
Tier 1 risk-based capital(1) 14.7 14.8 15.0 14.8 14.9
Total risk-based capital(1) 16.2 16.4 16.5 16.4 17.0
(1) September 30, 2006 capital ratios are preliminary. Calculated in
accordance with Office of Thrift Supervision regulations as of
September 30, 2006 and Federal Deposit Insurance Corporation
regulations for all prior periods.
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF CONDITION
Sept. 30, June 30, Sept. 30,
(in millions) 2006 2006 2005
Assets
Cash and due from banks $355.8 $400.0 $358.4
Short-term investments 179.6 45.8 96.2
Total cash and cash equivalents 535.4 445.8 454.6
Securities:
Trading account securities, at fair
value 29.5 29.8 34.0
Securities available for sale, at
fair value 171.3 869.8 1,462.5
Securities held to maturity, at
amortized cost 1.1 1.1 1.4
Total securities 201.9 900.7 1,497.9
Securities purchased under agreements
to resell - 25.0 25.0
Loans:
Residential mortgage 3,877.7 3,804.1 3,477.1
Commercial 2,197.4 2,159.4 1,918.3
Commercial real estate finance 1,799.3 1,786.7 1,736.2
Consumer 1,310.5 1,283.5 1,251.0
Total loans 9,184.9 9,033.7 8,382.6
Less allowance for loan losses (74.0) (74.0) (73.0)
Total loans, net 9,110.9 8,959.7 8,309.6
Bank-owned life insurance 211.2 209.0 152.9
Premises and equipment, net 134.1 135.2 141.6
Goodwill and other acquisition-related
intangibles 105.3 105.5 106.4
Other assets 313.3 223.8 203.1
Total assets $10,612.1 $11,004.7 $10,891.1
Liabilities
Deposits:
Non-interest-bearing $2,172.4 $2,342.8 $2,319.4
Savings, interest-bearing checking
and money market 3,286.1 3,560.2 3,895.6
Time 3,520.1 3,300.2 2,871.0
Total deposits 8,978.6 9,203.2 9,086.0
Borrowings:
Federal funds purchased 13.6 116.0 270.7
Federal Home Loan Bank advances - 105.0 -
Total borrowings 13.6 221.0 270.7
Subordinated notes 108.8 108.7 122.0
Other liabilities 159.7 145.5 144.7
Total liabilities 9,260.7 9,678.4 9,623.4
Stockholders' Equity
Common stock (without par value;
450.0 shares, 150.0 shares and 150.0
shares authorized; 142.1 shares,
142.0 shares and 141.6 shares issued
and outstanding) 142.1 142.0 141.6
Additional paid-in capital 177.8 176.2 170.1
Retained earnings 1,038.6 1,037.1 976.7
Accumulated other comprehensive loss (7.1) (29.0) (20.7)
Total stockholders' equity 1,351.4 1,326.3 1,267.7
Total liabilities and
stockholders' equity $10,612.1 $11,004.7 $10,891.1
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(in millions, except per share data) 2006 2006 2006 2005 2005
Interest and dividend income:
Residential mortgage $47.7 $45.4 $42.1 $40.7 $39.1
Commercial 38.0 36.1 33.2 31.0 28.4
Commercial real estate finance 32.2 31.0 29.3 29.8 29.3
Consumer 23.0 21.6 20.2 18.9 17.3
Total interest on loans 140.9 134.1 124.8 120.4 114.1
Securities 6.7 9.2 11.9 12.6 13.7
Short-term investments 1.6 0.7 0.8 0.5 0.5
Securities purchased under agreements
to resell 0.2 0.3 0.3 0.3 0.3
Total interest and dividend income 149.4 144.3 137.8 133.8 128.6
Interest expense:
Deposits 47.1 42.9 38.0 34.8 31.2
Borrowings 3.7 2.8 3.3 2.8 2.1
Subordinated notes 2.4 2.5 2.5 2.9 2.8
Total interest expense 53.2 48.2 43.8 40.5 36.1
Net interest income 96.2 96.1 94.0 93.3 92.5
Provision for loan losses 4.1 0.2 (2.3) 5.3 1.1
Net interest income after provision
for loan losses 92.1 95.9 96.3 88.0 91.4
Non-interest income:
Fee-based revenues:
Service charges on deposit accounts 20.1 20.0 18.3 19.8 19.9
Insurance revenue 6.6 5.8 7.8 7.6 7.1
Brokerage commissions 2.9 3.2 3.1 2.6 2.8
Other fees 8.6 8.5 8.6 9.8 9.8
Total fee-based revenues 38.2 37.5 37.8 39.8 39.6
Net security losses (23.2) (4.0) - - (0.1)
Bank-owned life insurance 2.2 2.2 1.9 1.6 1.6
Net gains on sales of residential
mortgage loans 0.5 0.6 0.4 0.9 1.5
Gain on sale of branches - - - 8.1 -
Other non-interest income 2.8 2.9 2.3 1.7 1.9
Total non-interest income 20.5 39.2 42.4 52.1 44.5
Non-interest expense:
Compensation and benefits 51.3 50.3 51.9 49.7 49.7
Occupancy and equipment 15.6 15.4 15.8 16.5 15.5
Professional and outside service fees 5.8 6.1 5.9 6.9 6.5
Other non-interest expense 14.4 14.8 14.0 17.4 14.5
Total non-interest expense 87.1 86.6 87.6 90.5 86.2
Income from continuing operations
before income tax expense 25.5 48.5 51.1 49.6 49.7
Income tax expense 8.6 16.3 17.2 15.3 17.3
Income from continuing operations 16.9 32.2 33.9 34.3 32.4
Discontinued operations:
Income from discontinued operations,
net of tax 0.1 0.7 0.9 0.9 1.1
Income from discontinued operations 0.1 0.7 0.9 0.9 1.1
Net income $17.0 $32.9 $34.8 $35.2 $33.5
Diluted earnings per common share:
Income from continuing operations $0.11 $0.23 $0.24 $0.24 $0.23
Income from discontinued operations 0.01 - - 0.01 0.01
Net income 0.12 0.23 0.24 0.25 0.24
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
Sept. 30, Sept. 30,
(in millions, except per share data) 2006 2005
Interest and dividend income:
Residential mortgage $135.2 $114.0
Commercial 107.3 77.7
Commercial real estate finance 92.5 86.4
Consumer 64.8 46.9
Total interest on loans 399.8 325.0
Securities 27.8 47.4
Short-term investments 3.1 1.0
Securities purchased under
agreements to resell 0.8 0.7
Total interest and dividend
income 431.5 374.1
Interest expense:
Deposits 128.0 82.7
Borrowings 9.8 6.6
Subordinated notes 7.4 8.4
Total interest expense 145.2 97.7
Net interest income 286.3 276.4
Provision for loan losses 2.0 3.3
Net interest income after
provision for loan losses 284.3 273.1
Non-interest income:
Fee-based revenues:
Service charges on deposit
accounts 58.4 52.6
Insurance revenue 20.2 20.4
Brokerage commissions 9.2 9.0
Other fees 25.7 29.7
Total fee-based revenues 113.5 111.7
Net security losses (27.2) (0.1)
Bank-owned life insurance 6.3 1.7
Net gains on sales of residential
mortgage loans 1.5 3.1
Other non-interest income 8.0 4.7
Total non-interest income 102.1 121.1
Non-interest expense:
Compensation and benefits 153.5 145.8
Occupancy and equipment 46.8 46.0
Professional and outside service fees 17.8 19.2
Other non-interest expense 43.2 42.8
Total non-interest expense 261.3 253.8
Income from continuing operations
before income tax expense 125.1 140.4
Income tax expense 42.1 48.8
Income from continuing operations 83.0 91.6
Discontinued operations:
Income from discontinued operations,
net of tax 1.7 4.1
Gain on sale of discontinued operations,
net of tax - 6.2
Income from discontinued operations 1.7 10.3
Net income $84.7 $101.9
Diluted earnings per common share:
Income from continuing operations $0.58 $0.65
Income from discontinued operations 0.01 0.07
Net income 0.59 0.72
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS(1)
September 30, 2006 June 30, 2006
Three months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $120.5 $1.6 5.30% $57.0 $0.7 4.66%
Securities purchased
under agreements to
resell 16.9 0.2 5.03 25.0 0.3 5.06
Securities(2) 668.5 6.7 4.00 1,069.5 9.2 3.46
Loans:
Residential mortgage 3,838.3 47.7 4.98 3,754.0 45.4 4.83
Commercial 2,157.0 38.0 7.03 2,120.6 36.1 6.81
Commercial real
estate finance 1,785.1 32.2 7.22 1,750.6 31.0 7.09
Consumer 1,302.5 23.0 7.08 1,272.4 21.6 6.80
Total loans 9,082.9 140.9 6.21 8,897.6 134.1 6.03
Total earning
assets $9,888.8 $149.4 6.04% $10,049.1 $144.3 5.74%
Funding liabilities:
Deposits:
Non-interest-bearing
deposits $2,058.2 $- -% $2,153.7 $- -%
Savings, interest-
bearing checking
and money market 3,376.9 12.5 1.48 3,600.7 12.5 1.38
Time 3,367.7 34.3 4.07 3,241.6 29.7 3.67
Total core deposits 8,802.8 46.8 2.12 8,996.0 42.2 1.88
Non-core deposits(3) 94.7 0.3 1.43 123.1 0.7 2.35
Total deposits 8,897.5 47.1 2.12 9,119.1 42.9 1.88
Borrowings:
Federal funds
purchased 147.0 2.0 5.37 199.8 2.4 4.84
Federal Home Loan
Bank advances 121.5 1.7 5.39 35.4 0.4 5.02
Total borrowings 268.5 3.7 5.38 235.2 2.8 4.87
Subordinated notes 108.7 2.4 9.03 108.7 2.5 9.04
Total funding
liabilities $9,274.7 $53.2 2.29% $9,463.0 $48.2 2.04%
Excess of earning
assets over funding
liabilities $614.1 $586.1
Net interest
income/spread $96.2 3.75% $96.1 3.70%
Net interest margin 3.89% 3.82%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
(3) Includes $78.3 million, $82.1 million and $103.5 million of non-
interest-bearing deposits for the three months ended September 30,
2006, June 30, 2006 and September 30, 2005, respectively.
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS(1)
September 30, 2005
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Earning assets:
Short-term investments $69.4 $0.5 2.97%
Securities purchased under agreements
to resell 25.0 0.3 4.45
Securities(2) 1,579.5 13.7 3.47
Loans:
Residential mortgage 3,456.7 39.1 4.53
Commercial 1,865.3 28.4 6.09
Commercial real estate finance 1,768.1 29.3 6.62
Consumer 1,227.6 17.3 5.63
Total loans 8,317.7 114.1 5.49
Total earning assets $9,991.6 $128.6 5.15%
Funding liabilities:
Deposits:
Non-interest-bearing deposits $2,160.1 $- -%
Savings, interest-bearing checking
and money market 3,964.9 10.8 1.09
Time 2,739.4 19.8 2.88
Total core deposits 8,864.4 30.6 1.38
Non-core deposits(3) 195.5 0.6 1.23
Total deposits 9,059.9 31.2 1.38
Borrowings:
Federal funds purchased 237.9 2.0 3.44
Federal Home Loan Bank advances 6.7 0.1 3.50
Total borrowings 244.6 2.1 3.44
Subordinated notes 121.9 2.8 9.18
Total funding liabilities $9,426.4 $36.1 1.53%
Excess of earning assets
over funding liabilities $565.2
Net interest income/spread $92.5 3.62%
Net interest margin 3.70%
(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) Includes $78.3 million, $82.1 million and $103.5 million of non-
interest-bearing deposits for the three months ended September 30,
2006, June 30, 2006 and September 30, 2005, respectively.
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS(1)
September 30, 2006 September 30, 2005
Nine months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $84.1 $3.1 4.87% $55.7 $1.0 2.53%
Securities purchased
under agreements to
resell 22.2 0.8 4.97 22.1 0.7 4.08
Securities(2) 1,018.7 27.8 3.64 1,838.9 47.7 3.45
Loans:
Residential mortgage 3,708.2 135.2 4.86 3,385.7 114.0 4.49
Commercial 2,104.6 107.3 6.80 1,788.4 77.7 5.79
Commercial real estate
finance 1,755.9 92.5 7.02 1,804.0 86.4 6.39
Consumer 1,278.5 64.8 6.76 1,185.1 46.9 5.27
Total loans 8,847.2 399.8 6.03 8,163.2 325.0 5.31
Total earning
assets $9,972.2 $431.5 5.77% $10,079.9 $374.4 4.95%
Funding liabilities:
Deposits:
Non-interest-bearing
deposits $2,107.7 $- -% $2,143.0 $- -%
Savings, interest-
bearing checking and
money market 3,549.8 36.8 1.38 4,095.8 30.7 1.00
Time 3,215.3 89.2 3.70 2,583.1 50.5 2.61
Total core deposits 8,872.8 126.0 1.89 8,821.9 81.2 1.23
Non-core deposits(3) 129.1 2.0 2.12 164.6 1.5 1.19
Total deposits 9,001.9 128.0 1.90 8,986.5 82.7 1.23
Borrowings:
Federal funds
purchased 207.2 7.4 4.76 242.5 5.2 2.90
Federal Home Loan
Bank advances 63.2 2.4 5.13 64.9 1.3 2.68
Repurchase agreements - - - 2.3 0.1 2.40
Total borrowings 270.4 9.8 4.84 309.7 6.6 2.85
Subordinated notes 108.7 7.4 9.04 121.9 8.4 9.18
Total funding
liabilities $9,381.0 $145.2 2.06% $9,418.1 $97.7 1.38%
Excess of earning
assets over funding
liabilities $591.2 $661.8
Net interest
income/spread $286.3 3.71% $276.7 3.57%
Net interest margin 3.83% 3.66%
(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) Includes $79.7 million and $91.5 million of non-interest-bearing
deposits for the nine months ended September 30, 2006 and 2005,
respectively.
People's Bank and Subsidiaries
NON-PERFORMING ASSETS
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(dollars in millions) 2006 2006 2006 2005 2005
Non-accrual loans:
Residential mortgage $7.8 $4.8 $5.1 $6.7 $3.9
Commercial real estate finance 6.6 12.3 12.8 5.8 5.9
Commercial 3.0 6.9 1.1 1.3 2.3
PCLC 2.1 2.6 2.9 6.2 5.9
Consumer 1.3 1.1 1.1 1.3 1.2
Total non-accrual loans 20.8 27.7 23.0 21.3 19.2
Real estate owned ("REO") and
repossessed assets, net 2.1 0.4 1.3 0.7 0.9
Total non-performing assets $22.9 $28.1 $24.3 $22.0 $20.1
Non-performing loans as a percentage
of total loans 0.23% 0.31% 0.26% 0.25% 0.23%
Non-performing assets as a percentage
of total loans, REO and repossessed
assets 0.25 0.31 0.28 0.26 0.24
Non-performing assets as a percentage
of stockholders' equity and allowance
for loan losses 1.61 2.01 1.76 1.62 1.50
Allowance for loan losses as a
percentage of non-performing loans 354.9 266.8 322.0 352.5 379.6
Allowance for loan losses as a
percentage of total loans 0.81 0.82 0.84 0.87 0.87
People's Bank and Subsidiaries
ALLOWANCE FOR LOAN LOSSES
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(in millions) 2006 2006 2006 2005 2005
Balance at beginning of period $74.0 $74.0 $75.0 $73.0 $73.0
Charge-offs (4.7) (1.1) (1.5) (4.1) (1.6)
Recoveries 0.6 0.9 2.8 0.8 0.5
Net loan (charge-offs) recoveries (4.1) (0.2) 1.3 (3.3) (1.1)
Provision for loan losses 4.1 0.2 (2.3) 5.3 1.1
Balance at end of period $74.0 $74.0 $74.0 $75.0 $73.0
People's Bank and Subsidiaries
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(in millions) 2006 2006 2006 2005 2005
Commercial $3.9 $- $0.1 $- $0.4
Consumer 0.3 0.3 0.6 0.9 0.6
Residential mortgage (0.1) 0.1 - (0.1) -
PCLC - - 0.3 2.5 0.1
Commercial real estate finance - (0.2) (2.3) - -
Total $4.1 $0.2 $(1.3) $3.3 $1.1
SOURCE People's Bank
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Related links:
http://www.peoples.com
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 of People's
Bank
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