BRIDGEPORT, Conn., Oct. 20 /PRNewswire-FirstCall/ -- People's Bank
(Nasdaq: PBCT), an $11 billion financial services company, today announced net
income increased 22 percent to $33.5 million, or $0.24 per share, for the
third quarter of 2005, compared to $27.5 million, or $0.19 per share, for the
third quarter of 2004. Income from continuing operations increased 38 percent
to $32.4 million, or $0.23 per share, from $23.5 million, or $0.16 per share,
for the year-ago quarter. Prior period per share information has been restated
to reflect the three-for-two stock split completed in May 2005.
For the third quarter of 2005, return on average assets was 1.24 percent
and return on average stockholders' equity was 10.7 percent, compared to
1.04 percent and 9.5 percent, respectively, for the year-ago quarter.
People's Board of Directors declared a $0.22 per share quarterly dividend
on People's common stock, payable November 15, 2005, to shareholders of record
on November 1, 2005. People's Mutual Holdings, which owns 82.0 million shares
of People's Bank common stock, will accept dividends on only 2.5 percent of
its shares. Based on the closing stock price on October 19, 2005, the dividend
yield on People's Bank common stock is 2.7 percent.
"People's delivered another quarter of significant earnings improvement
through our continuing focus on the fundamentals, including strong growth in
our core lending businesses, the ongoing investment in our banking franchise
and further improvement in the net interest margin," stated President and
Chief Executive Officer, John A. Klein.
"We continue to generate healthy loan growth across our commercial and
consumer businesses," said Klein. "Our average commercial banking, home equity
and residential mortgage loan portfolios increased a combined $912 million, or
12 percent, since the third quarter of 2004."
Klein concluded, "The continued growth of our Stop & Shop franchise in
Connecticut; the opening of our first loan production office in Massachusetts;
the expansion of our wholesale mortgage origination efforts in Westchester
County, New York; and the continued growth of the geographic reach of People's
Capital and Leasing Corp., our equipment financing subsidiary, now doing
business in 45 states, afford us the opportunity to further broaden our retail
and commercial customer base."
"Other key drivers of the bank's performance this quarter were another
increase in the net interest margin and continuing strong asset quality," said
Philip R. Sherringham, Executive Vice President and Chief Financial Officer.
"The 23 basis point improvement in the net interest margin from the third
quarter of last year reflects a combination of the bank's asset-sensitive
position and the ongoing substitution of securities with higher-yielding
loans."
Commenting on asset quality, Sherringham added, "Net loan charge-offs
totaled $1.1 million for the third quarter of 2005, a 52 percent improvement
from the third quarter of last year. Annualized net loan charge-offs as a
percent of average loans were only 5 basis points, compared to 12 basis points
in the year-ago quarter."
At September 30, 2005, non-performing assets totaled $20.1 million, a
$14.3 million, or 42 percent, decrease from September 30, 2004 and
equaled 0.24 percent of total loans, REO and repossessed assets, compared to
0.45 percent a year ago. The allowance for loan losses as a percentage of
non-performing loans was 380 percent at September 30, 2005, compared to
225 percent at September 30, 2004. The allowance for loan losses as a
percentage of total loans was 0.87 percent at September 30, 2005, compared to
0.99 percent a year ago.
Sherringham continued, "Our efficiency ratio was 62.5 percent in the third
quarter of 2005, compared to 66.7 percent in the third quarter of 2004 and
63.3 percent last quarter. The 420 basis point improvement from the year-ago
quarter reflects a significant increase in revenue, including an 8 percent
increase in net interest income and a 14 percent increase in non-interest
income."
Other News Highlights
* On October 5, 2005, Moody's Investors Service announced an upgrade on
all of its ratings of People's and a stable outlook.
* On August 16, 2005, Fitch Ratings upgraded its individual rating of
People's.
* On July 21, 2005, Standard & Poor's Rating Services announced that it
had revised its outlook to positive from stable on People's ratings.
Selected Financial Terms
In addition to presenting financial information in accordance with
generally accepted accounting principles ("GAAP"), certain non-GAAP
information is also presented, such as operating revenue and the efficiency
ratio. Operating revenue is based on income from continuing operations reduced
by gains and losses other than from the sale of residential mortgage loans and
excluding other items that may recur from time to time but that are deemed to
occur irregularly or infrequently. Management considers this measure to be
more representative of People's ongoing profitability, as the excluded items
are generally related to external market conditions and non-routine
transactions.
The efficiency ratio, which is derived in part from operating revenue and
represents an approximate measure of the cost required by People's to generate
a dollar of revenue, is the ratio of operating expense to operating revenue.
Operating expense equals People's total non-interest expense, excluding
goodwill impairment, amortization of acquisition-related intangibles, losses
on real estate assets, and nonrecurring expenses. People's considers an
expense to be "nonrecurring" if 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,
brokered certificates of deposit and municipal deposits.
Conference Call
On October 21, 2005, at 11 a.m., Eastern Time, People's will host a
conference call to discuss this earnings announcement. The call may be heard
through http://www.peoples.com by selecting "Investor Relations" 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 2005 compared with 3Q 2004 unless otherwise
indicated)
Summary
* Net income totaled $33.5 million, or $0.24 per share.
* Income from continuing operations increased $8.9 million.
* Net interest income increased $6.8 million.
-- Net interest margin increased 23 basis points from 3Q04 and improved
4 basis points from 2Q05 to 3.70%.
* Provision for loan losses decreased $3.2 million.
-- Net loan charge-offs decreased $1.2 million.
-- The allowance for loan losses was increased $2.0 million in 3Q04.
* Non-interest income increased $5.4 million, or 14%.
-- Total fee-based revenues increased $4.6 million.
-- Net gains on sales of residential mortgages increased $0.8 million.
-- Included in 3Q05 is $1.6 million of earnings related to the bank's
investment in bank-owned life insurance, while 3Q04 included $1.8
million of credit card-related servicing income.
* Non-interest expense increased $2.0 million, or 2%.
-- Compensation and benefits increased $3.2 million.
-- Occupancy and equipment decreased $2.2 million.
Commercial Banking
* Average commercial banking loans grew $409 million, or 13%.
* Average commercial non-interest-bearing deposits increased $30 million,
or 3%.
* The ratio of non-performing commercial banking loans to total commercial
banking loans was 0.39% at September 30, 2005, compared to 0.54% at
December 31, 2004.
* Net loan charge-offs were 0.05% of average commercial banking loans.
Consumer Financial Services
* Average home equity loan portfolios increased $225 million, or 24%.
* Average residential mortgage loans increased $277 million, or 9%.
* Average consumer non-interest-bearing deposits grew $44 million, or 4%.
Treasury
* Average securities and short-term investments declined $750 million, or
31%.
-- Securities made up 16% of average earning assets compared to 24% in
3Q04.
-- The debt securities portfolio totaled $1.4 billion at September 30,
2005, a $721 million, or 33%, 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. The bank is a leader in supermarket banking, with
68 of its 152 branches located in Super Stop & Shop stores. Through its
subsidiaries, People's 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 plans, objectives,
expectations and other statements that are not historical facts, and usually
use words such as "expect," "anticipate," "believe" and similar expressions.
Such statements represent management's current beliefs, based upon information
available at the time the statements are made, with regard to the matters
addressed. All forward-looking statements are subject to risks and
uncertainties that could cause People's actual results or financial condition
to differ materially from those expressed in or implied by such statements.
Factors of particular importance to People's include, but are not limited to:
(1) changes in general economic conditions, including interest rates;
(2) potential improvements or deterioration in credit quality; (3) competition
among providers of financial services; (4) residential mortgage and secondary
market activity; (5) changes in accounting and regulatory guidance applicable
to banks; and (6) price levels and conditions in the public securities markets
generally. People's does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
Access People's Bank on the World Wide Web at http://www.peoples.com.
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People's Bank and Subsidiaries
FINANCIAL HIGHLIGHTS
Three Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2005 2005 2005 2004 2004
(dollars in millions, except per share data)
Operating Data:
Net interest income $92.5 $92.7 $91.2 $88.1 $85.7
Provision for loan
losses 1.1 0.9 1.3 2.0 4.3
Fee-based revenues 39.6 36.6 35.5 36.3 35.0
Net security gains
(losses) (0.1) 0.1 (0.1) - 0.2
All other non-interest
income 4.6 2.0 1.9 2.2 3.5
Non-interest expense 85.8 85.7 81.3 83.9 83.8
Income from continuing
operations 32.4 29.4 29.8 26.3 23.5
Gain on sale of
discontinued operations,
net of tax - 6.2 - - 2.0
Net income 33.5 37.0 31.4 28.0 27.5
Selected Statistical Data:
Net interest margin (1) 3.70% 3.66% 3.62% 3.57% 3.47%
Return on average
assets (1) 1.24 1.36 1.17 1.06 1.04
Return on average
stockholders'
equity (1) 10.7 12.0 10.4 9.4 9.5
Efficiency ratio 62.5 63.3 62.8 66.5 66.7
Per Common Share Data:
Basic earnings
per share $0.24 $0.26 $0.23 $0.20 $0.20
Diluted earnings
per share 0.24 0.26 0.22 0.20 0.19
Dividends paid
per share (2) 0.22 0.22 0.19 0.19 0.19
Dividend payout
ratio (2) 40.3% 36.5% 37.7% 42.3% 42.8%
Book value
(end of period) $8.95 $8.84 $8.61 $8.52 $8.42
Tangible book value
(end of period) 8.20 8.09 7.84 7.74 7.63
Stock price:
High 33.75 30.48 28.00 29.65 24.67
Low 28.17 26.27 23.99 23.30 20.00
Close (end of period) 28.98 30.24 27.30 25.93 23.82
Average diluted shares
outstanding
(in millions) 141.88 141.72 141.42 141.24 140.95
(1) Annualized.
(2) Reflects the waiver of dividends on the substantial majority of the
common shares owned by People's Mutual Holdings.
People's Bank and Subsidiaries
FINANCIAL HIGHLIGHTS
Nine Months Ended
Sept. 30, Sept. 30,
(dollars in millions, except per share data) 2005 2004
Operating Data:
Net interest income $276.4 $239.0
Provision for loan losses 3.3 11.3
Fee-based revenues 111.7 106.6
Net security losses (0.1) (4.7)
All other non-interest income 8.5 10.4
Non-interest expense (1) 252.8 395.0
Income (loss) from continuing operations 91.6 (32.0)
Gain on sale of discontinued operations,
net of tax 6.2 198.5
Net income 101.9 171.7
Selected Statistical Data:
Net interest margin (2) 3.66% 3.25%
Return on average assets (2) 1.26 2.12
Return on average stockholders' equity (2) 11.1 20.5
Efficiency ratio 62.8 70.0
Per Common Share Data:
Basic earnings per share $0.73 $1.23
Diluted earnings per share 0.72 1.22
Dividends paid per share (3) 0.63 0.56
Dividend payout ratio (3) 38.2% 19.8%
Book value (end of period) $8.95 $8.42
Tangible book value (end of period) 8.20 7.63
Stock price:
High 33.75 24.67
Low 23.99 14.44
Close (end of period) 28.98 23.82
Average diluted shares outstanding (in millions) 141.69 140.72
(1) Includes liability restructuring costs totaling $133.4 million for
the nine months ended September 30, 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. 30, June 30, March 31, Dec. 31, Sept. 30,
2005 2005 2005 2004 2004
(dollars in millions)
Financial Condition Data:
General:
Total assets $10,891 $10,931 $10,857 $10,718 $10,541
Loans 8,383 8,288 8,088 7,933 7,597
Allowance for
loan losses 73 73 73 73 75
Securities, net 1,498 1,658 1,971 2,071 2,210
Deposits 9,086 9,177 9,046 8,862 8,812
Core deposits 8,858 8,978 8,829 8,681 8,550
Borrowings 271 234 289 341 222
Purchased funds 404 313 400 447 389
Subordinated
notes 122 122 122 122 122
Stockholders'
equity 1,268 1,251 1,216 1,200 1,184
Non-performing
assets 20 24 27 29 34
Net loan
charge-offs 1.1 0.9 0.8 4.5 2.3
Ratios:
Net loan
charge-offs to
average
loans (1) 0.05% 0.04% 0.04% 0.23% 0.12%
Non-performing
assets to total
loans, REO and
repossessed
assets 0.24 0.29 0.33 0.36 0.45
Allowance for
loan losses to
non-performing
loans 379.6 312.3 280.0 264.6 225.5
Allowance for
loan losses to
total loans 0.87 0.88 0.90 0.91 0.99
Average
stockholders'
equity to average
assets 11.5 11.3 11.2 11.2 11.0
Stockholders'
equity to total
assets 11.6 11.4 11.2 11.2 11.2
Tier 1 leverage
capital (2) 11.0 10.7 10.6 10.5 10.3
Tier 1 risk-based
capital (2) 14.9 14.8 14.7 14.6 15.0
Total risk-based
capital (2) 17.0 16.8 16.8 16.7 17.3
(1) Annualized.
(2) September 30, 2005 capital ratios are preliminary.
CONSOLIDATED STATEMENTS OF CONDITION
Sept. 30, June 30, Sept. 30,
(in millions) 2005 2005 2004
Assets
Cash and due from banks $358.4 $375.4 $310.7
Short-term investments 96.2 57.9 49.2
Total cash and cash
equivalents 454.6 433.3 359.9
Securities:
Trading account securities,
at fair value 34.0 34.1 12.0
Securities available for
sale, at fair value 1,462.5 1,622.0 2,196.1
Securities held to maturity,
at amortized cost 1.4 1.4 1.4
Total securities 1,497.9 1,657.5 2,209.5
Securities purchased under
agreements to resell 25.0 25.0 -
Loans:
Residential mortgage 3,477.1 3,440.9 3,195.5
Commercial 1,918.3 1,854.0 1,813.0
Commercial real estate
finance 1,736.2 1,790.6 1,503.9
Consumer 1,251.0 1,202.9 1,085.0
Total loans 8,382.6 8,288.4 7,597.4
Less allowance for loan
losses (73.0) (73.0) (75.0)
Total loans, net 8,309.6 8,215.4 7,522.4
Premises and equipment, net 148.4 149.0 143.7
Goodwill and other
acquisition-related
intangibles 106.4 106.8 110.7
Bank-owned life insurance 152.9 151.2 0.6
Other assets 196.3 192.6 194.0
Total assets $10,891.1 $10,930.8 $10,540.8
Liabilities
Deposits:
Non-interest-bearing $2,319.4 $2,370.4 $2,205.6
Savings, interest-bearing
checking and money
market 3,895.6 4,092.8 4,286.5
Time 2,871.0 2,713.4 2,320.3
Total deposits 9,086.0 9,176.6 8,812.4
Borrowings:
Federal funds purchased 270.7 208.9 222.1
Federal Home Loan Bank
advances - 25.0 -
Total borrowings 270.7 233.9 222.1
Subordinated notes 122.0 121.9 121.7
Other liabilities 144.7 147.9 200.4
Total liabilities 9,623.4 9,680.3 9,356.6
Stockholders' Equity
Common stock (without par value;
150.0 shares authorized;
141.6 shares, 141.4 shares
and 140.6 shares issued
and outstanding) 141.6 141.4 140.6
Additional paid-in capital 170.1 167.0 153.7
Retained earnings 976.7 956.7 897.6
Accumulated other
comprehensive loss (20.7) (14.6) (7.7)
Total stockholders'
equity 1,267.7 1,250.5 1,184.2
Total liabilities and
stockholders' equity $10,891.1 $10,930.8 $10,540.8
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
2005 2005 2005 2004 2004
(in millions, except per share data)
Interest and dividend income:
Residential mortgage $39.1 $38.1 $36.8 $35.4 $35.0
Commercial real estate
finance 29.3 29.0 28.1 27.9 26.4
Commercial 28.4 25.9 23.4 20.8 18.4
Consumer 17.3 15.5 14.1 12.8 11.6
Total interest on loans 114.1 108.5 102.4 96.9 91.4
Securities 13.7 16.5 17.2 17.2 19.4
Short-term investments 0.5 0.3 0.2 0.3 0.1
Securities purchased
under agreements to
resell 0.3 0.3 0.1 - -
Total interest and
dividend income 128.6 125.6 119.9 114.4 110.9
Interest expense:
Deposits 31.2 27.9 23.6 22.3 21.5
Borrowings 2.1 2.2 2.3 1.2 0.9
Subordinated notes 2.8 2.8 2.8 2.8 2.8
Total interest expense 36.1 32.9 28.7 26.3 25.2
Net interest income 92.5 92.7 91.2 88.1 85.7
Provision for loan losses 1.1 0.9 1.3 2.0 4.3
Net interest income
after provision for
loan losses 91.4 91.8 89.9 86.1 81.4
Non-interest income:
Fee-based revenues:
Service charges on
deposit accounts 19.9 17.3 15.4 16.8 17.8
Insurance revenue 7.1 5.9 7.4 8.0 6.4
Brokerage commissions 3.0 3.7 3.1 3.2 3.0
Other fees 9.6 9.7 9.6 8.3 7.8
Total fee-based
revenues 39.6 36.6 35.5 36.3 35.0
Net security gains
(losses) (0.1) 0.1 (0.1) - 0.2
Net gains on sales of
residential mortgage
loans 1.5 1.0 0.6 0.7 0.7
Bank-owned life insurance 1.6 0.1 - - -
Other non-interest income 1.5 0.9 1.3 1.5 2.8
Total non-interest
income 44.1 38.7 37.3 38.5 38.7
Non-interest expense:
Compensation and benefits 49.7 48.4 47.7 45.9 46.5
Occupancy and equipment 15.4 14.7 15.7 16.5 17.6
Professional and outside
service fees 6.5 6.7 6.0 7.8 6.8
Goodwill impairment
charge - 2.0 - - -
Other non-interest
expense 14.2 13.9 11.9 13.7 12.9
Total non-interest
expense 85.8 85.7 81.3 83.9 83.8
Income from continuing
operations
before income tax
expense 49.7 44.8 45.9 40.7 36.3
Income tax expense 17.3 15.4 16.1 14.4 12.8
Income from continuing
operations 32.4 29.4 29.8 26.3 23.5
Discontinued operations:
Income from discontinued
operations, net of tax 1.1 1.4 1.6 1.7 2.0
Gain on sale of
discontinued operations,
net of tax - 6.2 - - 2.0
Income from
discontinued
operations 1.1 7.6 1.6 1.7 4.0
Net income $33.5 $37.0 $31.4 $28.0 $27.5
Diluted earnings per common
share:
Income from continuing
operations $0.23 $0.21 $0.21 $0.19 $0.16
Income from discontinued
operations 0.01 0.05 0.01 0.01 0.03
Net income 0.24 0.26 0.22 0.20 0.19
People's Bank and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
Sept. 30, Sept. 30,
2005 2004
(in millions, except per share data)
Interest and dividend income:
Residential mortgage $114.0 $102.3
Commercial real estate
finance 86.4 77.0
Commercial 77.7 52.5
Consumer 46.9 33.9
Total interest on loans 325.0 265.7
Securities 47.4 55.2
Short-term investments 1.0 1.9
Securities purchased
under agreements to resell 0.7 -
Total interest and
dividend income 374.1 322.8
Interest expense:
Deposits 82.7 64.4
Borrowings 6.6 12.4
Subordinated notes 8.4 10.6
Interest allocated to
discontinued operations - (3.6)
Total interest expense 97.7 83.8
Net interest income 276.4 239.0
Provision for loan losses 3.3 11.3
Net interest income
after provision for
loan losses 273.1 227.7
Non-interest income:
Fee-based revenues:
Service charges on
deposit accounts 52.6 52.4
Insurance revenue 20.4 19.9
Brokerage commissions 9.8 9.9
Other fees 28.9 24.4
Total fee-based revenues 111.7 106.6
Net security losses (0.1) (4.7)
Net gains on sales of
residential mortgage loans 3.1 3.0
Bank-owned life insurance 1.7 -
Other non-interest income 3.7 7.4
Total non-interest income 120.1 112.3
Non-interest expense:
Compensation and benefits 145.8 148.4
Occupancy and equipment 45.8 52.7
Professional and outside
service fees 19.2 18.0
Liability restructuring costs - 133.4
Goodwill impairment charge 2.0 -
Other non-interest expense 40.0 42.5
Total non-interest expense 252.8 395.0
Income (loss) from
continuing operations
before income tax
expense (benefit) 140.4 (55.0)
Income tax expense (benefit) 48.8 (23.0)
Income (loss) from
continuing operations 91.6 (32.0)
Discontinued operations:
Income from discontinued
operations, net of tax 4.1 5.2
Gain on sale of
discontinued operations,
net of tax 6.2 198.5
Income from discontinued
operations 10.3 203.7
Net income $101.9 $171.7
Diluted earnings per common
share:
Income (loss) from
continuing operations $0.65 $(0.23)
Income from discontinued
operations 0.07 1.45
Net income 0.72 1.22
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2005 June 30, 2005
Three months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $69.4 $0.5 2.97% $53.7 $0.3 2.54%
Securities purchased
under agreements to resell 25.0 0.3 4.45 25.0 0.3 4.00
Securities (2) 1,579.5 13.7 3.47 1,907.7 16.8 3.52
Loans:
Residential mortgage 3,456.7 39.1 4.53 3,398.3 38.1 4.48
Commercial real
estate finance 1,768.1 29.3 6.62 1,817.5 29.0 6.38
Commercial 1,865.3 28.4 6.09 1,790.5 25.9 5.78
Consumer 1,227.6 17.3 5.63 1,177.8 15.5 5.27
Total loans 8,317.7 114.1 5.49 8,184.1 108.5 5.30
Total earning
assets $9,991.6 $128.6 5.15% $10,170.5 $125.9 4.95%
Funding liabilities:
Deposits:
Non-interest-bearing
deposits $2,160.1 $- -% $2,167.6 $- -%
Savings, interest-
bearing checking
and money market 3,964.9 10.8 1.09 4,131.5 10.7 1.03
Time 2,739.4 19.8 2.88 2,594.8 16.7 2.57
Total core deposits 8,864.4 30.6 1.38 8,893.9 27.4 1.23
Non-core deposits 195.5 0.6 1.23 156.1 0.5 1.32
Total deposits 9,059.9 31.2 1.38 9,050.0 27.9 1.23
Borrowings:
Federal funds
purchased 237.9 2.0 3.44 239.3 1.7 2.89
Federal Home Loan
Bank advances 6.7 0.1 3.50 64.2 0.5 3.01
Total borrowings 244.6 2.1 3.44 303.5 2.2 2.92
Subordinated notes 121.9 2.8 9.18 121.9 2.8 9.18
Total funding
liabilities $9,426.4 $36.1 1.53% $9,475.4 $32.9 1.39%
Excess of earning
assets
over funding
liabilities $565.2 $695.1
Net interest
income/spread $92.5 3.62% $93.0 3.56%
Net interest margin 3.70% 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.
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2004
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Earning assets:
Short-term investments $50.9 $0.1 1.11%
Securities purchased under
agreements to resell - - -
Securities (2) 2,373.4 19.4 3.28
Loans:
Residential mortgage 3,179.5 35.0 4.40
Commercial real estate finance 1,777.2 26.5 5.96
Commercial 1,446.7 18.4 5.09
Consumer 1,051.8 11.6 4.40
Total loans 7,455.2 91.5 4.91
Total earning assets $9,879.5 $111.0 4.49%
Funding liabilities:
Deposits:
Non-interest-bearing deposits $2,086.7 $- -%
Savings, interest-bearing checking
and money market 4,327.9 8.8 0.81
Time 2,219.4 12.5 2.25
Total core deposits 8,634.0 21.3 0.99
Non-core deposits 193.4 0.2 0.50
Total deposits 8,827.4 21.5 0.98
Borrowings:
Federal funds purchased 230.7 0.8 1.37
Federal Home Loan Bank advances 35.8 0.1 1.54
Total borrowings 266.5 0.9 1.39
Subordinated notes 121.7 2.8 9.19
Total funding liabilities $9,215.6 $25.2 1.10%
Excess of earning assets
over funding liabilities $663.9
Net interest income/spread $85.8 3.39%
Net interest margin 3.47%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
People's Bank and Subsidiaries
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2005 September 30, 2004
Nine months ended Average Yield/ Average Yield/
(dollars in millions) Balance Interest Rate Balance Interest Rate
Earning assets:
Short-term investments $55.7 $1.0 2.53% $247.3 $2.1 1.15%
Securities purchased
under agreements to
resell 22.1 0.7 4.08 - - -
Securities (2) 1,838.9 47.7 3.45 2,294.9 55.2 3.21
Loans:
Residential mortgage 3,385.7 114.0 4.49 3,141.1 102.3 4.34
Commercial real
estate finance 1,804.0 86.4 6.39 1,740.4 77.1 5.91
Commercial 1,788.4 77.7 5.79 1,399.5 52.5 5.01
Consumer 1,185.1 46.9 5.27 1,007.7 33.9 4.47
Total loans 8,163.2 325.0 5.31 7,288.7 265.8 4.86
Total earning
assets $10,079.9 $374.4 4.95% $9,830.9 $323.1 4.38%
Funding liabilities:
Deposits:
Non-interest-bearing
deposits $2,143.0 $- -% $2,032.7 $- -%
Savings, interest-
bearing checking and
money market 4,095.8 30.7 1.00 4,284.3 25.8 0.80
Time 2,583.1 50.5 2.61 2,258.5 37.8 2.23
Total core deposits 8,821.9 81.2 1.23 8,575.5 63.6 0.99
Non-core deposits 164.6 1.5 1.19 202.7 0.8 0.55
Total deposits 8,986.5 82.7 1.23 8,778.2 64.4 0.98
Borrowings:
Federal funds
purchased 242.5 5.2 2.90 259.3 2.1 1.07
Federal Home Loan
Bank advances 64.9 1.3 2.68 228.8 9.3 5.40
Repurchase agreements 2.3 0.1 2.40 48.3 1.0 2.90
Total borrowings 309.7 6.6 2.85 536.4 12.4 3.41
Subordinated notes 121.9 8.4 9.18 154.8 10.6 9.15
Funding liabilities
allocated to
discontinued
operations (3) - - - (272.0) (3.6) 1.77
Total funding
liabilities $9,418.1 $97.7 1.38% $9,197.4 $83.8 1.22%
Excess of earning
assets over funding
liabilities $661.8 $633.5
Net interest
income/spread $276.7 3.57% $239.3 3.16%
Net interest margin 3.66% 3.25%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
(3) Represents an allocation of funding liabilities and interest expense
to discontinued operations.
People's Bank and Subsidiaries
NON-PERFORMING ASSETS
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(dollars in millions) 2005 2005 2005 2004 2004
Non-accrual loans:
PCLC $5.9 $7.0 $6.5 $5.1 $6.6
Commercial real estate finance 5.9 5.9 7.4 8.7 13.2
Residential mortgage 3.9 6.7 5.5 7.5 7.2
Commercial 2.3 2.5 5.2 5.2 5.4
Consumer 1.2 1.2 1.5 0.9 0.9
Total non-accrual loans 19.2 23.3 26.1 27.4 33.3
Real estate owned ("REO") and
repossessed assets, net 0.9 0.9 0.9 1.2 1.1
Total non-performing assets $20.1 $24.2 $27.0 $28.6 $34.4
Non-performing loans as a percentage
of total loans 0.23% 0.28% 0.32% 0.35% 0.44%
Non-performing assets as a percentage
of total loans, REO and repossessed
assets 0.24 0.29 0.33 0.36 0.45
Non-performing assets as a percentage
of stockholders' equity and allowance
for loan losses 1.50 1.83 2.09 2.25 2.73
Allowance for loan losses as a
percentage of non-performing loans 379.6 312.3 280.0 264.6 225.5
Allowance for loan losses as a
percentage of total loans 0.87 0.88 0.90 0.91 0.99
People's Bank and Subsidiaries
ALLOWANCE FOR LOAN LOSSES
Three Months Ended
Sept. June March Dec. Sept.
30, 30, 31, 31, 30,
(in millions) 2005 2005 2005 2004 2004
Balance at beginning of period $73.0 $73.0 $72.5 $75.0 $73.0
Charge-offs (1.6) (1.7) (1.7) (5.4) (3.2)
Recoveries 0.5 0.8 0.9 0.9 0.9
Net loan charge-offs (1.1) (0.9) (0.8) (4.5) (2.3)
Provision for loan losses 1.1 0.9 1.3 2.0 4.3
Balance at end of period $73.0 $73.0 $73.0 $72.5 $75.0
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) 2005 2005 2005 2004 2004
Consumer $0.6 $0.9 $0.6 $0.7 $1.6
Commercial 0.3 - - 0.1 0.2
PCLC 0.1 - 0.3 0.6 0.5
Residential mortgage 0.1 - (0.1) (0.1) -
Commercial real estate finance - - - 3.2 -
Total $1.1 $0.9 $0.8 $4.5 $2.3
SOURCE People's Bank
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Related links:
http://www.peoples.com
Company News On-Call:
http://www.prnewswire.com/comp/113252.html
CONTACT:
Vincent J. Calabrese, Senior Vice President
and Controller, +1-203-338-4114, Fax: 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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