BRIDGEPORT, Conn., July 15 /PRNewswire-FirstCall/ -- People's United
Financial, Inc. (Nasdaq: PBCT) today announced net income of
$16.0 million, or $0.04 per share, for the second quarter of 2010,
compared to $13.6 million, or
$0.04 per share, for the first
quarter of 2010, and $25.3 million,
or $0.08 per share, for the second
quarter of 2009. Included in both this quarter's and first
quarter's results are pre-tax merger-related, system conversion and
one-time expenses totaling $23.2
million and $23.4 million,
respectively. Excluding the effect of these items, net income
would have been $31.8 million, or
$0.09 per share, for the second
quarter of 2010 and $29.2 million, or
$0.08 per share, for the first
quarter of 2010.
As previously reported, People's United Financial completed its
acquisitions of Financial Federal Corporation on February 19, 2010 and Butler Bank on April 16, 2010. Accordingly, Financial
Federal's and Butler Bank's results of operations are included as
of the respective acquisition dates, and prior period results have
not been restated to include Financial Federal and Butler Bank.
The Board of Directors of People's United Financial declared a
$0.1550 per share quarterly dividend,
payable August 15, 2010 to
shareholders of record on August 1,
2010. Based on the closing stock price on July 14, 2010, the dividend yield on People's
United Financial common stock is 4.4 percent.
People's United Financial also announced today definitive
agreements to acquire Smithtown Bancorp, Inc. based in Hauppauge, New York, and LSB Corporation based
in North Andover, Massachusetts.
Further information regarding these acquisitions is included
in a separate release.
"The announcement today of the acquisition of two financial
institutions within markets contiguous to our existing footprint,
while at the same time reporting another solid quarter of operating
results, is a testament to the strong financial position of
People's United Financial," stated Jack
Barnes, interim President and Chief Executive Officer. "The
strength of our capital and liquidity, asset quality and earnings,
as well as the fact that our balance sheet remains funded almost
entirely by deposits and stockholders' equity, continue to set us
apart from most in the industry."
Barnes added, "While we continue to evaluate potential
acquisition opportunities, we are actively pursuing other capital
deployment activities. In this regard, we plan to open two
new branches in downtown Boston –
one in the Prudential Center and one in the Financial District –
before year end, thereby providing an important extension to our
growing footprint in the greater Boston area. Further, during the second
quarter we repurchased 3.7 million shares of our common stock for
approximately $52 million."
Barnes concluded, "In connection with the final phase of our
core systems conversion, which is scheduled to be completed this
weekend, we have begun the process of rebranding our branches in
Vermont, New Hampshire, Massachusetts and Maine to People's United Bank. We are
pleased to have reached this milestone, which will provide all of
our customers with the added convenience of being able to bank
seamlessly at any of our nearly 300 branches along with the instant
recognition of the People's United Bank name on branches from
Bangor, Maine to Scarsdale, New York."
"On an operating basis, excluding merger-related, system
conversion and one-time expenses, earnings were $31.8 million, or 9
cents per share this quarter," said Paul D. Burner, Senior Executive Vice President
and Chief Financial Officer. "Significant drivers of the
company's performance this quarter were an improvement in the net
interest margin and modest loan growth across our strategic lending
businesses, partially offset by higher net loan charge-offs.
The net interest margin improved 21 basis points to 3.68
percent, primarily reflecting the benefit of a full quarter of
Financial Federal. A single non-performing commercial loan
accounted for $6.0 million, or 72
percent, of the quarterly increase in net loan charge-offs."
Commenting on asset quality, Burner continued, "Loans acquired
in connection with the Financial Federal and Butler Bank
acquisitions have been recorded at fair value, including a
reduction for estimated credit losses, and without carryover of the
respective portfolio's historical allowance for loan losses.
As such, selected asset quality metrics have been highlighted
to distinguish between the 'originated' portfolio and the
'acquired' portfolios. For the originated loan portfolio,
representing all loans other than those acquired in the Financial
Federal and Butler Bank transactions, non-performing loans totaled
$219.7 million at June 30, 2010, and the ratio of non-performing
loans to originated loans was 1.56 percent, compared to
$192.3 million and 1.36 percent,
respectively, at March 31, 2010.
Non-performing loans in the acquired loan portfolios, which
represent those loans acquired in the Financial Federal and Butler
Bank transactions that meet our definition of non-performing but
for which the risk of loss has already been considered by virtue of
our estimate of acquisition-date fair value and/or the existence of
an FDIC loss-share agreement, totaled $60.1
million at June 30, 2010."
Non-performing assets totaled $284.5
million at June 30, 2010, a
$37.0 million increase from
March 31, 2010, of which $13.1 million is attributable to REO acquired in
connection with the Butler Bank acquisition. Non-performing
assets equaled 2.01 percent of originated loans, REO and
repossessed assets at June 30, 2010
compared to 1.74 percent at March 31,
2010. At June 30, 2010,
the allowance for loan losses as a percentage of originated loans
was 1.23 percent and as a percentage of non-performing originated
loans was 79 percent, compared to 1.22 percent and 90 percent,
respectively, at March 31, 2010.
Second quarter net loan charge-offs totaled $17.8 million compared to $9.5 million in the first quarter of 2010.
Net loan charge-offs as a percent of average loans on an
annualized basis were 0.46 percent in the second quarter of 2010
compared to 0.26 percent in this year's first quarter. The
level of the allowance for loan losses is unchanged from
March 31, 2010.
In the second quarter of 2010, return on average tangible assets
was 0.32 percent and return on average tangible stockholders'
equity was 1.7 percent, compared to 0.28 percent and 1.5 percent,
respectively, for the first quarter of 2010. At June 30, 2010, People's United Financial's
tangible equity ratio stood at 18.0 percent.
Conference Call
On July 16, 2010, at 11 a.m., Eastern Time, People's United Financial
will host a conference call to discuss this earnings announcement
and our acquisition announcements. The call may be heard
through www.peoples.com by selecting "Investor Relations" in the
"About Us" 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.
Selected Financial Terms
In addition to evaluating People's United Financial's results of
operations in accordance with U.S. generally accepted accounting
principles ("GAAP"), management routinely supplements this
evaluation with an analysis of certain non-GAAP financial measures,
such as the efficiency and tangible equity ratios, and tangible
book value per share. 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. Further, the
efficiency ratio is used by management in its assessment of
financial performance specifically as it relates to non-interest
expense control, while the tangible equity ratio and tangible book
value per share are used to analyze the relative strength of
People's United Financial's capital position.
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 (i) total non-interest expense
(excluding goodwill impairment charges, amortization of other
acquisition-related intangibles and fair value adjustments, losses
on real estate assets and non-recurring expenses) (the numerator)
to (ii) 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 non-recurring
income) (the denominator). People's United Financial
generally considers an item of income or expense to be
non-recurring 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.
The tangible equity ratio is the ratio of (i) tangible
stockholders' equity (total stockholders' equity less goodwill and
other acquisition-related intangibles) (the numerator) to (ii)
tangible assets (total assets less goodwill and other
acquisition-related intangibles) (the denominator). Tangible
book value per share is calculated by dividing tangible
stockholders' equity by common shares outstanding (total common
shares issued, less common shares classified as treasury shares and
unallocated ESOP common shares).
2Q 2010 Financial Highlights
Summary
- Net income totaled $16.0 million,
or $0.04 per share.
- Operating earnings were $31.8
million, or $0.09 per
share.
- Net interest income totaled $173.8
million.
- Net interest margin increased 21 basis points from 1Q10 to
3.68%.
- Average short-term investments and securities purchased under
agreements to resell totaled $2.5
billion, or 13% of average earning assets, and yielded 0.26%
in 2Q10.
- Average deposits increased $502
million (including $183
million of average deposits acquired in the Butler Bank
acquisition) and the interest cost on deposits declined 4 basis
points from 1Q10.
- Provision for loan losses totaled $17.8
million.
- Net loan charge-offs totaled $17.8
million in 2Q10.
- Non-interest income totaled $76.8
million in 2Q10 compared to $70.6
million in 1Q10.
- 2Q10 includes a full quarter of Financial Federal non-interest
income.
- Non-interest expense totaled $209.8
million in 2Q10 compared to $200.3
million in 1Q10.
- 2Q10 includes $15.3 million of
one-time expenses related to the former CEO separation
agreement.
- 2Q10 and 1Q10 include $7.9
million and $23.4 million,
respectively, of merger-related and system conversion costs.
- 2Q10 includes a full quarter of Financial Federal non-interest
expense.
- Effective income tax rate was 30.4% in 2Q10 and 31.8% in the
first six months of 2010.
- Excluding a $1.2 million
non-taxable BOLI death benefit, the income tax rate was 32.2% in
2Q10 and 32.7% in the first six months of 2010.
Commercial Banking
- Average commercial banking loans, excluding shared national
credits and acquired loans, increased $96
million from 1Q10 to $8.9
billion.
- Loans acquired in the Financial Federal transaction averaged
$1.1 billion in 2Q10.
- Shared national credits totaled $470.9
million (3% of total loans) at June
30, 2010, a $55.0 million
decrease from March 31, 2010.
- Non-performing commercial banking assets, excluding
non-performing acquired loans, totaled $182.0 million at June 30,
2010, a $13.7 million increase
from March 31, 2010.
- Commercial REO acquired in the Butler Bank acquisition
accounted for $5.2 million of the
increase.
- Includes two previously disclosed non-performing shared
national credits ($11.0 million in
non-performing loans and $8.8 million
in real estate owned).
- The ratio of non-performing commercial banking loans, excluding
non-performing acquired loans, to originated commercial banking
loans was 1.36% at June 30, 2010
compared to 1.25% at March 31,
2010.
- Net loan charge-offs totaled $16.5
million, or 0.62% annualized, of average commercial banking
loans in 2Q10, compared to $7.5
million, or 0.30% annualized, in 1Q10.
Retail & Small Business Banking
- Average residential mortgage loans totaled $2.5 billion, unchanged from 1Q10, reflecting the
addition of approximately $105
million of average residential mortgage loans acquired in
the Butler Bank acquisition.
- Net loan charge-offs totaled $0.4
million, or 0.07% annualized, of average residential
mortgage loans.
- The ratio of non-performing residential mortgage loans,
excluding non-performing acquired loans, to originated residential
mortgage loans was 3.40% at June 30,
2010 compared to 2.70% at March 31,
2010.
- Average home equity loans totaled $2.0
billion, unchanged from 1Q10.
- Net loan charge-offs totaled $0.1
million, or 0.03% annualized, of average home equity
loans.
- Average indirect auto loans totaled $187
million, a $12 million
decrease from 1Q10.
- Net loan charge-offs totaled $0.2
million, or 0.39% annualized, of average indirect auto
loans.
Wealth Management
- Wealth Management income decreased $0.3
million from 1Q10.
- Investment management fees increased $0.7 million and insurance revenue decreased
$1.0 million, both reflecting the
seasonal nature of related fee income.
- Assets managed and administered, which are not reported as
assets of People's United Financial, totaled $16.4 billion at June 30,
2010 compared to $16.8 billion
at March 31, 2010, primarily
reflecting the decline in equity markets in 2Q10.
People's United Financial, a diversified financial services
company with $22 billion in assets,
provides commercial banking, retail and small business banking, and
wealth management services through a network of nearly 300 branches
in Connecticut, Vermont, New
Hampshire, Maine,
Massachusetts 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; (10) the successful integration of
acquired companies; (11) success in addressing management
succession issues in a timely and effective manner; and (12)
possible changes in regulation resulting from or relating to the
pending financial reform legislation. 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 www.peoples.com.
People's United Financial,
Inc.
|
|
FINANCIAL HIGHLIGHTS
|
|
|
|
People's United Financial
acquired Financial Federal Corporation on February 19, 2010 and
Butler
|
|
Bank on April 16, 2010.
The acquisitions were accounted for using the purchase method
of accounting.
|
|
Accordingly, Financial Federal
and Butler Bank results of operations are included as of the
respective
|
|
acquisition dates, and prior
period results have not been restated to include Financial Federal
and Butler Bank.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
|
(dollars in millions, except per
share data)
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
Operating Data:
|
|
|
|
|
|
|
Net interest
income
|
$ 173.8
|
$ 159.6
|
$
147.5
|
$ 145.3
|
$ 141.2
|
|
Provision for loan
losses
|
17.8
|
9.5
|
13.6
|
21.5
|
14.0
|
|
Non-interest income
(1)
|
76.8
|
70.6
|
71.7
|
80.2
|
85.0
|
|
Non-interest expense
(2)
|
209.8
|
200.3
|
172.2
|
165.1
|
176.2
|
|
Income before income tax
expense
|
23.0
|
20.4
|
33.4
|
38.9
|
36.0
|
|
Net income
|
16.0
|
13.6
|
24.9
|
26.8
|
25.3
|
|
|
|
|
|
|
|
|
Selected Statistical
Data:
|
|
|
|
|
|
|
Net interest margin
(3)
|
3.68%
|
3.47%
|
3.19%
|
3.19%
|
3.12%
|
|
Return on average assets
(3)
|
0.29
|
0.26
|
0.47
|
0.51
|
0.49
|
|
Return on average tangible
assets (3)
|
0.32
|
0.28
|
0.51
|
0.55
|
0.53
|
|
Return on average
stockholders' equity (3)
|
1.2
|
1.0
|
2.0
|
2.1
|
2.0
|
|
Return on average tangible
stockholders' equity (3)
|
1.7
|
1.5
|
2.8
|
3.0
|
2.8
|
|
Efficiency
ratio
|
72.7
|
75.9
|
73.7
|
71.3
|
73.9
|
|
|
|
|
|
|
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
Diluted earnings per
share
|
$ 0.04
|
$ 0.04
|
$
0.07
|
$ 0.08
|
$ 0.08
|
|
Dividends paid per
share
|
0.1550
|
0.1525
|
0.1525
|
0.1525
|
0.1525
|
|
Dividend payout
ratio
|
352.0%
|
376.2%
|
204.7%
|
191.3%
|
202.0%
|
|
Book value (end of
period)
|
$ 15.10
|
$ 15.12
|
$
15.20
|
$ 15.24
|
$ 15.29
|
|
Tangible book value (end
of period)
|
10.14
|
10.25
|
10.68
|
10.71
|
10.75
|
|
Stock price:
|
|
|
|
|
|
|
High
|
16.79
|
17.08
|
17.16
|
17.41
|
18.54
|
|
Low
|
13.49
|
15.07
|
15.15
|
14.84
|
14.72
|
|
Close (end of
period)
|
13.50
|
15.62
|
16.70
|
15.56
|
15.07
|
|
Common shares outstanding
(end of period) (in millions)
|
358.51
|
362.25
|
335.63
|
335.62
|
335.47
|
|
Average diluted common
shares outstanding (in millions)
|
358.24
|
344.82
|
332.56
|
332.19
|
332.33
|
|
|
|
|
|
|
|
|
(1)
Includes net security gains of $4.7 million and $12.0 million
for the three months ended September 30, 2009 and June 30, 2009,
respectively.
|
|
(2)
Includes $23.2 million, $23.4 million and $4.5 million of
merger-related, system conversion and one-time expenses for
the three months ended June 30, 2010, March 31, 2010 and December
31, 2009, respectively, and an FDIC special assessment charge
of $8.4 million for the three months ended June 30,
2009.
|
|
(3)
Annualized.
|
|
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
FINANCIAL HIGHLIGHTS -
Continued
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
|
|
June 30,
|
June 30,
|
|
(dollars in millions, except per
share data)
|
2010
|
2009
|
|
Operating Data:
|
|
|
|
Net interest
income
|
$ 333.4
|
$ 284.0
|
|
Provision for loan
losses
|
27.3
|
21.9
|
|
Non-interest income
(1)
|
147.4
|
157.2
|
|
Non-interest expense
(2)
|
410.1
|
347.3
|
|
Income before income tax
expense
|
43.4
|
72.0
|
|
Net income
|
29.6
|
49.5
|
|
|
|
|
|
Selected Statistical
Data:
|
|
|
|
Net interest margin
(3)
|
3.58%
|
3.18%
|
|
Return on average assets
(3)
|
0.27
|
0.48
|
|
Return on average tangible
assets (3)
|
0.30
|
0.52
|
|
Return on average
stockholders' equity (3)
|
1.1
|
1.9
|
|
Return on average tangible
stockholders' equity (3)
|
1.6
|
2.7
|
|
Efficiency
ratio
|
74.2
|
74.6
|
|
|
|
|
|
Per Common Share
Data:
|
|
|
|
Diluted earnings per
share
|
$ 0.08
|
$ 0.15
|
|
Dividends paid per
share
|
0.3075
|
0.3025
|
|
Dividend payout
ratio
|
363.1%
|
204.6%
|
|
Book value (end of
period)
|
$ 15.10
|
$ 15.29
|
|
Tangible book value (end
of period)
|
10.14
|
10.75
|
|
Stock price:
|
|
|
|
High
|
17.08
|
18.54
|
|
Low
|
13.49
|
14.72
|
|
Close (end of
period)
|
13.50
|
15.07
|
|
Common shares outstanding
(end of period) (in millions)
|
358.51
|
335.47
|
|
Average diluted common
shares outstanding (in millions)
|
351.56
|
332.25
|
|
|
|
|
|
(1)
Includes net security gains of $17.4 million for the six
months ended June 30, 2009.
|
|
(2)
Includes $46.6 million of merger-related, system conversion
and one-time expenses for the six months ended June 30, 2010
and an FDIC special assessment charge of $8.4 million for the six
months ended June 30, 2009.
|
|
(3)
Annualized.
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
FINANCIAL HIGHLIGHTS -
Continued
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months
Ended
|
|
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
|
(dollars in millions)
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
Financial Condition
Data:
|
|
|
|
|
|
|
General:
|
|
|
|
|
|
|
Total
assets
|
$ 21,923
|
$ 21,588
|
$
21,257
|
$ 20,810
|
$ 20,812
|
|
Loans
|
15,215
|
15,311
|
14,234
|
14,302
|
14,553
|
|
Short-term
investments (1)
|
1,199
|
2,527
|
3,492
|
3,077
|
3,073
|
|
Securities
|
1,787
|
886
|
902
|
550
|
491
|
|
Allowance for loan
losses
|
173
|
173
|
173
|
173
|
167
|
|
Goodwill and other
acquisition-related intangibles
|
1,778
|
1,767
|
1,515
|
1,520
|
1,525
|
|
Deposits
|
15,834
|
15,397
|
15,446
|
15,050
|
15,023
|
|
Borrowings
|
141
|
175
|
159
|
154
|
160
|
|
Subordinated
notes
|
183
|
182
|
182
|
182
|
181
|
|
Stockholders'
equity
|
5,413
|
5,479
|
5,101
|
5,115
|
5,130
|
|
Non-performing
assets (2)
|
285
|
248
|
206
|
193
|
182
|
|
Net loan
charge-offs
|
17.8
|
9.5
|
13.6
|
16.0
|
6.0
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
Loans
|
$ 15,319
|
$ 14,680
|
$
14,231
|
$ 14,454
|
$ 14,595
|
|
Short-term
investments (1)
|
2,534
|
2,901
|
3,464
|
3,105
|
2,816
|
|
Securities
|
1,097
|
888
|
887
|
782
|
799
|
|
Total earning
assets
|
18,950
|
18,469
|
18,582
|
18,341
|
18,210
|
|
Total
assets
|
21,872
|
21,260
|
21,132
|
20,870
|
20,759
|
|
Deposits
|
15,704
|
15,202
|
15,273
|
15,037
|
14,886
|
|
Total funding
liabilities
|
16,052
|
15,573
|
15,616
|
15,365
|
15,237
|
|
Stockholders'
equity
|
5,458
|
5,275
|
5,106
|
5,135
|
5,162
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
Net loan
charge-offs to
|
|
|
|
|
|
|
average
loans (annualized)
|
0.46%
|
0.26%
|
0.38%
|
0.44%
|
0.16%
|
|
Non-performing
assets to originated loans,
|
|
|
|
|
|
|
REO and
repossessed assets (3)
|
2.01
|
1.74
|
1.44
|
1.35
|
1.25
|
|
Allowance for loan
losses to
|
|
|
|
|
|
|
non-performing originated loans (3)
|
78.5
|
89.7
|
102.2
|
98.2
|
99.4
|
|
Allowance for loan
losses to originated loans (3)
|
1.23
|
1.22
|
1.21
|
1.21
|
1.15
|
|
Average
stockholders' equity to average total assets
|
24.9
|
24.8
|
24.2
|
24.6
|
24.9
|
|
Stockholders'
equity to total assets
|
24.7
|
25.4
|
24.0
|
24.6
|
24.7
|
|
Tangible
stockholders' equity to tangible assets
|
18.0
|
18.7
|
18.2
|
18.6
|
18.7
|
|
Total risk-based
capital (4)
|
16.5
|
16.3
|
14.1
|
14.0
|
13.7
|
|
|
|
|
|
|
|
|
(1)
Includes securities purchased under agreements to
resell.
|
|
(2)
Excludes acquired loans.
|
|
(3)
Calculations exclude acquired loans.
|
|
(4)
Total risk-based capital ratios 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 June 30,
2010 total risk-based capital ratio is preliminary.
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
CONDITION
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
March 31,
|
June 30,
|
|
(in millions)
|
2010
|
2010
|
2009
|
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
357.5
|
$
296.3
|
$
343.0
|
|
Short-term
investments
|
1,199.2
|
2,527.3
|
2,672.8
|
|
Total cash and cash
equivalents
|
1,556.7
|
2,823.6
|
3,015.8
|
|
Securities purchased under
agreements to resell
|
745.0
|
-
|
400.0
|
|
Securities:
|
|
|
|
|
Trading account
securities, at fair value
|
75.6
|
75.7
|
12.2
|
|
Securities available for
sale, at fair value
|
1,621.8
|
724.1
|
446.8
|
|
Securities held to
maturity, at amortized cost
|
55.3
|
55.3
|
0.8
|
|
Federal Home Loan Bank
stock, at cost
|
33.9
|
31.1
|
31.1
|
|
Total
securities
|
1,786.6
|
886.2
|
490.9
|
|
Loans:
|
|
|
|
|
Commercial real
estate
|
5,478.7
|
5,442.1
|
5,234.2
|
|
Commercial
|
5,049.8
|
5,178.3
|
4,094.6
|
|
Residential
mortgage
|
2,489.4
|
2,468.3
|
2,950.1
|
|
Consumer
|
2,197.0
|
2,222.6
|
2,273.7
|
|
Total
loans
|
15,214.9
|
15,311.3
|
14,552.6
|
|
Less allowance for loan
losses
|
(172.5)
|
(172.5)
|
(167.0)
|
|
Total loans,
net
|
15,042.4
|
15,138.8
|
14,385.6
|
|
Goodwill and other
acquisition-related intangibles
|
1,778.2
|
1,766.5
|
1,525.3
|
|
Premises and
equipment
|
255.0
|
258.2
|
258.2
|
|
Bank-owned life
insurance
|
239.4
|
236.9
|
233.0
|
|
Other assets
|
519.8
|
477.9
|
502.7
|
|
Total
assets
|
$
21,923.1
|
$ 21,588.1
|
$ 20,811.5
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
3,421.1
|
$ 3,313.3
|
$ 3,310.4
|
|
Savings, interest-bearing
checking and money market
|
7,907.6
|
7,641.5
|
6,609.7
|
|
Time
|
4,505.6
|
4,442.6
|
5,102.9
|
|
Total
deposits
|
15,834.3
|
15,397.4
|
15,023.0
|
|
Borrowings:
|
|
|
|
|
Repurchase
agreements
|
133.0
|
164.1
|
145.5
|
|
Federal Home Loan Bank
advances
|
7.5
|
10.5
|
14.6
|
|
Total
borrowings
|
140.5
|
174.6
|
160.1
|
|
Subordinated notes
|
182.5
|
182.2
|
181.2
|
|
Other liabilities
|
352.5
|
355.3
|
310.6
|
|
Total
liabilities
|
16,509.8
|
16,109.5
|
15,674.9
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
Common stock ($0.01 par value;
1.95 billion shares authorized;
|
|
|
|
|
374.6 million shares,
374.8 million shares and 348.3 million shares issued)
|
3.8
|
3.8
|
3.5
|
|
Additional paid-in
capital
|
4,940.6
|
4,924.6
|
4,500.6
|
|
Retained earnings
|
831.1
|
874.5
|
974.7
|
|
Treasury stock, at cost (6.9
million shares, 3.2 million shares and 3.3 million
shares)
|
(110.2)
|
(58.2)
|
(60.1)
|
|
Accumulated other comprehensive
loss
|
(60.5)
|
(72.8)
|
(83.3)
|
|
Unallocated common stock of
Employee Stock Ownership Plan, at cost
|
|
|
|
|
(9.2 million shares, 9.3
million shares and 9.6 million shares)
|
(191.5)
|
(193.3)
|
(198.8)
|
|
Total stockholders'
equity
|
5,413.3
|
5,478.6
|
5,136.6
|
|
Total liabilities
and stockholders' equity
|
$
21,923.1
|
$ 21,588.1
|
$ 20,811.5
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
|
(in millions, except per share
data)
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
Interest and dividend
income:
|
|
|
|
|
|
|
Commercial real
estate
|
$
75.3
|
$
74.1
|
$
74.1
|
$ 73.9
|
$ 70.8
|
|
Commercial
|
70.0
|
58.2
|
48.1
|
49.6
|
50.6
|
|
Residential
mortgage
|
28.3
|
28.6
|
31.4
|
35.1
|
37.8
|
|
Consumer
|
22.5
|
22.8
|
23.5
|
24.0
|
24.0
|
|
Total interest on
loans
|
196.1
|
183.7
|
177.1
|
182.6
|
183.2
|
|
Securities
|
9.2
|
8.1
|
8.4
|
7.5
|
7.2
|
|
Short-term
investments
|
1.5
|
1.7
|
1.8
|
1.4
|
1.6
|
|
Securities purchased under
agreements to resell
|
0.1
|
0.1
|
0.2
|
0.4
|
0.2
|
|
Total interest and
dividend income
|
206.9
|
193.6
|
187.5
|
191.9
|
192.2
|
|
Interest expense:
|
|
|
|
|
|
|
Deposits
|
29.0
|
29.7
|
35.9
|
42.5
|
46.8
|
|
Borrowings
|
0.3
|
0.5
|
0.4
|
0.3
|
0.4
|
|
Subordinated
notes
|
3.8
|
3.8
|
3.7
|
3.8
|
3.8
|
|
Total interest
expense
|
33.1
|
34.0
|
40.0
|
46.6
|
51.0
|
|
Net interest
income
|
173.8
|
159.6
|
147.5
|
145.3
|
141.2
|
|
Provision for loan
losses
|
17.8
|
9.5
|
13.6
|
21.5
|
14.0
|
|
Net interest income
after provision for loan losses
|
156.0
|
150.1
|
133.9
|
123.8
|
127.2
|
|
Non-interest income:
|
|
|
|
|
|
|
Investment management
fees
|
8.6
|
7.9
|
7.9
|
8.4
|
8.6
|
|
Insurance
revenue
|
6.3
|
7.3
|
7.0
|
7.9
|
6.8
|
|
Brokerage
commissions
|
2.8
|
2.8
|
2.9
|
2.8
|
3.2
|
|
Total wealth
management income
|
17.7
|
18.0
|
17.8
|
19.1
|
18.6
|
|
Bank service
charges
|
32.9
|
31.2
|
32.2
|
33.3
|
32.9
|
|
Merchant services
income
|
6.4
|
5.8
|
6.3
|
6.7
|
6.1
|
|
Bank-owned life
insurance
|
2.6
|
1.8
|
1.9
|
2.2
|
2.7
|
|
Net security gains
(losses)
|
-
|
-
|
(0.1)
|
4.7
|
12.0
|
|
Net gains on sales of
residential mortgage loans
|
2.7
|
2.8
|
3.0
|
5.2
|
3.8
|
|
Other non-interest
income
|
14.5
|
11.0
|
10.6
|
9.0
|
8.9
|
|
Total non-interest
income
|
76.8
|
70.6
|
71.7
|
80.2
|
85.0
|
|
Non-interest expense:
|
|
|
|
|
|
|
Compensation and
benefits
|
92.6
|
96.3
|
89.2
|
86.0
|
86.6
|
|
Occupancy and
equipment
|
28.5
|
29.8
|
28.0
|
27.5
|
26.3
|
|
Professional and outside
service fees
|
20.8
|
13.6
|
10.0
|
11.6
|
11.7
|
|
Amortization of other
acquisition-related intangibles
|
4.8
|
4.7
|
5.0
|
5.1
|
5.3
|
|
Merchant services
expense
|
5.3
|
4.8
|
5.2
|
5.7
|
5.2
|
|
Merger-related
expenses
|
2.8
|
14.7
|
2.0
|
-
|
-
|
|
Other non-interest
expense
|
55.0
|
36.4
|
32.8
|
29.2
|
41.1
|
|
Total non-interest
expense
|
209.8
|
200.3
|
172.2
|
165.1
|
176.2
|
|
Income before
income tax expense
|
23.0
|
20.4
|
33.4
|
38.9
|
36.0
|
|
Income tax expense
|
7.0
|
6.8
|
8.5
|
12.1
|
10.7
|
|
Net
income
|
$
16.0
|
$
13.6
|
$
24.9
|
$ 26.8
|
$ 25.3
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
common share
|
$
0.04
|
$
0.04
|
$
0.07
|
$ 0.08
|
$ 0.08
|
|
|
|
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME
|
|
|
|
|
|
|
|
|
Six months ended
|
|
|
June 30,
|
June 30,
|
|
(in millions, except per share
data)
|
2010
|
2009
|
|
Interest and dividend
income:
|
|
|
|
Commercial real
estate
|
$
149.4
|
$
139.8
|
|
Commercial
|
128.2
|
101.2
|
|
Residential
mortgage
|
56.9
|
78.5
|
|
Consumer
|
45.3
|
47.9
|
|
Total interest on
loans
|
379.8
|
367.4
|
|
Securities
|
17.3
|
16.5
|
|
Short-term
investments
|
3.2
|
3.3
|
|
Securities purchased under
agreements to resell
|
0.2
|
0.2
|
|
Total interest and
dividend income
|
400.5
|
387.4
|
|
Interest expense:
|
|
|
|
Deposits
|
58.7
|
95.0
|
|
Borrowings
|
0.8
|
0.8
|
|
Subordinated
notes
|
7.6
|
7.6
|
|
Total interest
expense
|
67.1
|
103.4
|
|
Net interest
income
|
333.4
|
284.0
|
|
Provision for loan
losses
|
27.3
|
21.9
|
|
Net interest income
after provision for loan losses
|
306.1
|
262.1
|
|
Non-interest income:
|
|
|
|
Investment management
fees
|
16.5
|
16.1
|
|
Insurance
revenue
|
13.6
|
15.1
|
|
Brokerage
commissions
|
5.6
|
6.5
|
|
Total wealth
management
|
35.7
|
37.7
|
|
Bank service
charges
|
64.1
|
63.3
|
|
Merchant services
income
|
12.2
|
11.9
|
|
Bank-owned life
insurance
|
4.4
|
4.3
|
|
Net security
gains
|
-
|
17.4
|
|
Net gains on sales of
residential mortgage loans
|
5.5
|
5.7
|
|
Other non-interest
income
|
25.5
|
16.9
|
|
Total non-interest
income
|
147.4
|
157.2
|
|
Non-interest expense:
|
|
|
|
Compensation and
benefits
|
188.9
|
175.3
|
|
Occupancy and
equipment
|
58.3
|
54.3
|
|
Professional and outside
service fees
|
34.4
|
22.4
|
|
Amortization of other
acquisition-related intangibles
|
9.5
|
10.5
|
|
Merchant services
expense
|
10.1
|
10.1
|
|
Merger-related
expenses
|
17.5
|
-
|
|
Other non-interest
expense
|
91.4
|
74.7
|
|
Total non-interest
expense
|
410.1
|
347.3
|
|
Income before
income tax expense
|
43.4
|
72.0
|
|
Income tax expense
|
13.8
|
22.5
|
|
Net
income
|
29.6
|
49.5
|
|
|
|
|
|
Basic and diluted earnings per
common share
|
$
0.08
|
$
0.15
|
|
|
|
|
People's United Financial,
Inc.
AVERAGE BALANCE SHEET,
INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
June 30, 2010
|
|
March 31, 2010
|
|
|
Three months ended
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
(dollars in millions)
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
2,262.1
|
$
1.5
|
0.26%
|
$
2,673.5
|
$
1.7
|
0.26%
|
|
Securities purchased
under
|
|
|
|
|
|
|
|
agreements to
resell
|
271.4
|
0.1
|
0.20
|
226.7
|
0.1
|
0.15
|
|
Securities (2)
|
1,096.7
|
9.2
|
3.33
|
888.3
|
8.1
|
3.65
|
|
Loans:
|
|
|
|
|
|
|
|
Commercial real
estate
|
5,461.4
|
75.3
|
5.52
|
5,392.7
|
74.1
|
5.49
|
|
Commercial
|
5,112.1
|
70.8
|
5.54
|
4,545.3
|
59.0
|
5.19
|
|
Residential
mortgage
|
2,536.9
|
28.3
|
4.46
|
2,506.8
|
28.6
|
4.57
|
|
Consumer
|
2,208.8
|
22.5
|
4.08
|
2,235.5
|
22.8
|
4.07
|
|
Total
loans
|
15,319.2
|
196.9
|
5.14
|
14,680.3
|
184.5
|
5.03
|
|
Total earning
assets
|
18,949.4
|
$
207.7
|
4.38%
|
18,468.8
|
$
194.4
|
4.21%
|
|
Other assets
|
2,922.5
|
|
|
2,790.8
|
|
|
|
Total
assets
|
$
21,871.9
|
|
|
$
21,259.6
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
3,357.0
|
$
-
|
- %
|
$
3,271.3
|
$
-
|
- %
|
|
Savings, interest-bearing
checking
|
|
|
|
|
|
|
|
and money
market
|
7,817.7
|
12.3
|
0.63
|
7,413.7
|
11.6
|
0.62
|
|
Time
|
4,529.4
|
16.7
|
1.48
|
4,516.8
|
18.1
|
1.60
|
|
Total
deposits
|
15,704.1
|
29.0
|
0.74
|
15,201.8
|
29.7
|
0.78
|
|
Borrowings:
|
|
|
|
|
|
|
|
Repurchase
agreements
|
151.8
|
0.2
|
0.44
|
164.6
|
0.2
|
0.45
|
|
Federal Home Loan Bank
advances
|
8.6
|
0.1
|
6.12
|
11.2
|
0.1
|
5.49
|
|
Other
|
4.9
|
-
|
-
|
13.6
|
0.2
|
5.03
|
|
Total
borrowings
|
165.3
|
0.3
|
0.72
|
189.4
|
0.5
|
1.08
|
|
Subordinated notes
|
182.3
|
3.8
|
8.30
|
182.0
|
3.8
|
8.31
|
|
Total funding
liabilities
|
16,051.7
|
$
33.1
|
0.83%
|
15,573.2
|
$
34.0
|
0.87%
|
|
Other liabilities
|
362.3
|
|
|
411.3
|
|
|
|
Total
liabilities
|
16,414.0
|
|
|
15,984.5
|
|
|
|
Stockholders' equity
|
5,457.9
|
|
|
5,275.1
|
|
|
|
Total liabilities
and stockholders' equity
|
$
21,871.9
|
|
|
$
21,259.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
(3)
|
|
$
174.6
|
3.55%
|
|
$
160.4
|
3.34%
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
3.68%
|
|
|
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.
|
|
(3)
The FTE adjustment was $0.8 million, $0.8 million and $0.9
million for the three months ended June 30, 2010, March 31, 2010
and June 30, 2009, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
|
|
|
AVERAGE BALANCE SHEET, INTEREST
AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
June 30, 2009
|
|
|
Three months ended
|
Average
|
|
Yield/
|
|
(dollars in millions)
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
Short-term
investments
|
$
2,543.9
|
$
1.6
|
0.26%
|
|
Securities purchased
under
|
|
|
|
|
agreements to
resell
|
272.5
|
0.2
|
0.23
|
|
Securities (2)
|
798.6
|
7.2
|
3.60
|
|
Loans:
|
|
|
|
|
Commercial real
estate
|
5,154.4
|
70.8
|
5.49
|
|
Commercial
|
4,175.7
|
51.5
|
4.94
|
|
Residential
mortgage
|
2,988.8
|
37.8
|
5.05
|
|
Consumer
|
2,275.9
|
24.0
|
4.22
|
|
Total
loans
|
14,594.8
|
184.1
|
5.04
|
|
Total earning
assets
|
18,209.8
|
$
193.1
|
4.24%
|
|
Other assets
|
2,549.5
|
|
|
|
Total
assets
|
$
20,759.3
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity:
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
3,192.0
|
$
-
|
- %
|
|
Savings, interest-bearing
checking
|
|
|
|
|
and money
market
|
6,600.5
|
12.1
|
0.74
|
|
Time
|
5,093.5
|
34.7
|
2.72
|
|
Total
deposits
|
14,886.0
|
46.8
|
1.26
|
|
Borrowings:
|
|
|
|
|
Repurchase
agreements
|
155.8
|
0.2
|
0.43
|
|
Federal Home Loan Bank
advances
|
14.6
|
0.2
|
5.30
|
|
Other
|
-
|
-
|
-
|
|
Total
borrowings
|
170.4
|
0.4
|
0.84
|
|
Subordinated notes
|
181.0
|
3.8
|
8.36
|
|
Total funding
liabilities
|
15,237.4
|
$
51.0
|
1.34%
|
|
Other liabilities
|
359.8
|
|
|
|
Total
liabilities
|
15,597.2
|
|
|
|
Stockholders' equity
|
5,162.1
|
|
|
|
Total liabilities
and stockholders' equity
|
$
20,759.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
(3)
|
|
$
142.1
|
2.90%
|
|
|
|
|
|
|
Net interest margin
|
|
|
3.12%
|
|
|
|
|
|
|
(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 $0.8 million, $0.8 million and $0.9
million for the three months ended June 30, 2010, March 31, 2010
and June 30, 2009, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET, INTEREST
AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2010
|
|
June 30, 2009
|
|
|
Six months ended
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
(dollars in millions)
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
2,466.6
|
$
3.2
|
0.26%
|
$
2,186.1
|
$
3.3
|
0.30%
|
|
Securities purchased under
agreements to resell
|
249.2
|
0.2
|
0.18
|
137.0
|
0.2
|
0.23
|
|
Securities (2)
|
993.1
|
17.3
|
3.47
|
1,035.3
|
16.5
|
3.20
|
|
Loans:
|
|
|
|
|
|
|
|
Commercial real
estate
|
5,427.3
|
149.4
|
5.51
|
5,087.8
|
139.8
|
5.50
|
|
Commercial
|
4,830.2
|
129.8
|
5.38
|
4,192.9
|
103.0
|
4.91
|
|
Residential
mortgage
|
2,521.9
|
56.9
|
4.51
|
3,053.8
|
78.5
|
5.14
|
|
Consumer
|
2,222.1
|
45.3
|
4.07
|
2,264.4
|
47.9
|
4.23
|
|
Total
loans
|
15,001.5
|
381.4
|
5.09
|
14,598.9
|
369.2
|
5.06
|
|
Total earning
assets
|
18,710.4
|
$
402.1
|
4.30%
|
17,957.3
|
$
389.2
|
4.33%
|
|
Other assets
|
2,857.0
|
|
|
2,552.5
|
|
|
|
Total
assets
|
$
21,567.4
|
|
|
$
20,509.8
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
3,312.3
|
$
-
|
- %
|
$
3,149.3
|
$
-
|
- %
|
|
Savings, interest-bearing
checking and money market
|
7,618.8
|
23.9
|
0.63
|
6,445.2
|
24.7
|
0.77
|
|
Time
|
4,523.2
|
34.8
|
1.54
|
5,022.9
|
70.3
|
2.80
|
|
Total
deposits
|
15,454.3
|
58.7
|
0.76
|
14,617.4
|
95.0
|
1.30
|
|
Borrowings:
|
|
|
|
|
|
|
|
Repurchase
agreements
|
158.1
|
0.4
|
0.44
|
163.4
|
0.4
|
0.44
|
|
Federal Home Loan Bank
advances
|
9.9
|
0.2
|
5.77
|
14.8
|
0.4
|
5.28
|
|
Other
|
9.2
|
0.2
|
3.73
|
4.3
|
-
|
1.95
|
|
Total
borrowings
|
177.2
|
0.8
|
0.91
|
182.5
|
0.8
|
0.87
|
|
Subordinated notes
|
182.2
|
7.6
|
8.30
|
180.8
|
7.6
|
8.37
|
|
Total funding
liabilities
|
15,813.7
|
$
67.1
|
0.85%
|
14,980.7
|
$
103.4
|
1.38%
|
|
Other liabilities
|
386.7
|
|
|
366.2
|
|
|
|
Total
liabilities
|
16,200.4
|
|
|
15,346.9
|
|
|
|
Stockholders' equity
|
5,367.0
|
|
|
5,162.9
|
|
|
|
Total liabilities
and stockholders' equity
|
$
21,567.4
|
|
|
$
20,509.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
(3)
|
|
$
335.0
|
3.45%
|
|
$
285.8
|
2.95%
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
3.58%
|
|
|
3.18%
|
|
|
|
|
|
|
|
|
|
(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 $1.6 million and $1.8 million for the
six months ended June 30, 2010 and 2009, respectively.
|
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
|
|
|
|
|
NON-PERFORMING ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
|
(dollars in millions)
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
Originated non-accrual
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
$ 80.9
|
$ 66.7
|
$ 52.7
|
$ 49.8
|
$ 51.4
|
|
Commercial real
estate
|
67.2
|
65.8
|
72.4
|
80.2
|
75.0
|
|
Equipment
financing
|
37.0
|
23.1
|
20.6
|
18.6
|
16.5
|
|
Commercial
|
25.2
|
28.9
|
17.4
|
21.0
|
21.3
|
|
Consumer
|
9.0
|
7.5
|
5.7
|
6.1
|
3.8
|
|
Indirect auto
|
0.4
|
0.3
|
-
|
-
|
-
|
|
Total
(1)
|
219.7
|
192.3
|
168.8
|
175.7
|
168.0
|
|
Repossessed assets
|
27.6
|
31.8
|
12.9
|
6.8
|
4.1
|
|
Real estate owned
("REO")
|
37.2
|
23.4
|
23.9
|
10.2
|
9.9
|
|
Total
|
$ 284.5
|
$ 247.5
|
$ 205.6
|
$ 192.7
|
$ 182.0
|
|
Acquired non-accrual loans
(2)
|
$ 60.1
|
$ 51.7
|
$
-
|
$
-
|
$
-
|
|
|
|
|
|
|
|
|
Non-performing originated loans
as a percentage of originated loans (3)
|
1.56%
|
1.36%
|
1.19%
|
1.23%
|
1.15%
|
|
Non-performing assets as a
percentage of:
|
|
|
|
|
|
|
Originated loans, REO and
repossessed assets (3)
|
2.01
|
1.74
|
1.44
|
1.35
|
1.25
|
|
Tangible stockholders'
equity and allowance for loan losses
|
7.47
|
6.37
|
5.47
|
5.11
|
4.82
|
|
|
|
|
|
|
|
|
(1) Reported
net of government guarantees totaling $6.8 million at June 30,
2010, $7.3 million at March 31, 2010, $8.3 million at
December 31, 2009, $7.2 million at September 30, 2009 and $7.1
million at June 30, 2009.
|
|
(2)
Represents those loans acquired in the Financial Federal and Butler
Bank transactions that meet People's United's definition of a
non-performing loan at June 30, 2010 and March 31, 2010, but for
which the risk of credit loss have been considered by virtue of our
estimate of acquisition-date fair value and/or the existence of an
FDIC loss-share agreement.
|
|
(3)
Calculations exclude acquired loans. Including acquired loans
and acquired non-accrual loans at June 30, 2010 and March 31, 2010,
non-performing loans were 1.84% and 1.59% of total loans and
non-performing assets were 2.26% and 1.95% of total loans, REO and
repossessed assets, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR LOAN
LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
|
(dollars in millions)
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
Balance at beginning of
period
|
$ 172.5
|
$ 172.5
|
$ 172.5
|
$ 167.0
|
$ 159.0
|
|
Charge-offs
|
(19.0)
|
(10.9)
|
(14.5)
|
(17.2)
|
(6.9)
|
|
Recoveries
|
1.2
|
1.4
|
0.9
|
1.2
|
0.9
|
|
Net loan
charge-offs
|
(17.8)
|
(9.5)
|
(13.6)
|
(16.0)
|
(6.0)
|
|
Provision for loan
losses
|
17.8
|
9.5
|
13.6
|
21.5
|
14.0
|
|
Balance at end of
period
|
$ 172.5
|
$ 172.5
|
$ 172.5
|
$ 172.5
|
$ 167.0
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a
percentage of:
|
|
|
|
|
|
|
Originated loans
|
1.23%
|
1.22%
|
1.21%
|
1.21%
|
1.15%
|
|
Non-performing originated
loans
|
78.5
|
89.7
|
102.2
|
98.2
|
99.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN CHARGE-OFFS
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
|
(dollars in millions)
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
Commercial
|
$ 8.0
|
$
0.8
|
$ 4.3
|
$
1.5
|
$ 1.1
|
|
Commercial real
estate
|
4.8
|
5.8
|
1.5
|
7.7
|
0.4
|
|
Equipment financing
|
3.7
|
0.9
|
4.0
|
2.0
|
1.8
|
|
Consumer
|
0.7
|
1.3
|
1.9
|
1.3
|
1.2
|
|
Residential mortgage
|
0.4
|
0.1
|
1.2
|
2.6
|
0.8
|
|
Indirect auto
|
0.2
|
0.6
|
0.7
|
0.9
|
0.7
|
|
Total
|
$ 17.8
|
$
9.5
|
$ 13.6
|
$ 16.0
|
$ 6.0
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average
loans (annualized)
|
0.46%
|
0.26%
|
0.38%
|
0.44%
|
0.16%
|
|
|
|
|
|
|
|
SOURCE People's United Financial, Inc.