BRIDGEPORT, Conn., April 16 /PRNewswire-FirstCall/ -- People's United Financial, Inc. (Nasdaq: PBCT) today announced net income of $26.7 million, or $0.08 per share, for the first quarter of 2009, compared to $15.1 million, or $0.05 per share, for the first quarter of 2008. The company's Board of Directors voted to increase the annual common stock dividend by $0.01 per share, resulting in a quarterly dividend rate of $0.1525 per share. The dividend is payable May 15, 2009 to shareholders of record on May 1, 2009. Based on the closing stock price on April 15, 2009, the dividend yield on People's United Financial common stock is 3.5 percent.
First quarter 2009 earnings reflect expected margin pressure associated with the historically low interest rate environment and reduced fee income stemming from continued uncertainty in the equity markets and broader economic weakness. For the first quarter of 2009, return on average tangible assets was 0.57 percent and return on average tangible stockholders' equity was 2.9 percent, compared to 0.31 percent and 1.6 percent, respectively, for the first quarter of 2008. At March 31, 2009, People's United Financial's tangible equity ratio was 19.0 percent.
President and Chief Executive Officer, Philip R. Sherringham stated, "Our performance in the first quarter of 2009 continues to reflect the difficult economic environment, specifically as it relates to the current level of interest rates and our asset-sensitive balance sheet. However, the key elements of our financial position -- strong asset quality, predicated on conservative underwriting standards, and prudent management of our excess capital -- have served us well in these challenging times. Modest levels of net loan charge-offs and year-over-year double-digit growth in our core lending businesses continue to differentiate us from most in the banking sector. Despite an increase in non-performing assets during the quarter as the economy continued to deteriorate, we expect that any potential losses attributable to those assets will be limited."
Sherringham continued, "While we are well-positioned to benefit from future increases in interest rates given our asset-sensitive balance sheet, the current rate environment continues to pressure our net interest margin. Our strategic focus remains on expansion through acquisitions even as we continue to pursue organic growth throughout our franchise. The strength of our capital and liquidity, asset quality and earnings, as well as the fact that our balance sheet continues to be funded almost entirely by deposits and stockholders' equity, are hallmarks that set us apart from most in the industry."
Commenting on acquisitions, Sherringham added, "We continue to weigh all of our options in determining the most attractive use of our capital as a means of delivering long-term shareholder value. As we have said previously, we still feel it is best to exercise patience as we work toward identifying and executing an acquisition that will enhance the long-term profitability of the company. In addition, our dividend continues to be an appropriate avenue to enhance shareholder returns; in fact, our strong capital position afforded us the ability to increase it for the 17th consecutive year."
"Key drivers of the company's performance this quarter were healthy loan growth across our core lending businesses and continued low levels of net loan charge-offs, somewhat offset by continued margin pressure and lower fee income," said Paul D. Burner, Senior Executive Vice President and Chief Financial Officer. "Average commercial banking loans, excluding shared national credits, increased $220 million, or 11 percent annualized, while our home equity loan portfolio increased $71 million, or 15 percent annualized, from the fourth quarter of 2008. As expected, the net interest margin decreased from the fourth quarter of 2008 due to the decline in interest rates."
Commenting on asset quality, Burner stated, "A single shared national credit accounted for $16 million, or 38 percent, of the increase in our non-performing loans this quarter. Another 43 percent of the increase was attributable to residential mortgage loans, which is a reflection of higher levels of unemployment across our franchise. Notwithstanding the increase in non-performing assets, our continued low level of net loan charge-offs in this current economic environment is a testament to our disciplined underwriting standards."
First quarter net loan charge-offs totaled $6.4 million compared to $5.7 million in the fourth quarter of 2008. Net loan charge-offs as a percent of average loans on an annualized basis were 0.18 percent in the first quarter of 2009 compared to 0.16 percent in the prior year's fourth quarter. The provision for loan losses in the first quarter of 2009 reflects a $1.5 million increase in the allowance for loan losses to $159.0 million at March 31, 2009.
At March 31, 2009, non-performing loans totaled $126.1 million and the ratio of non-performing loans to total loans was 0.86 percent, compared to $84.3 million and 0.58 percent, respectively, at December 31, 2008. Non-performing assets totaled $142.0 million at March 31, 2009, a $48.3 million increase from December 31, 2008. Non-performing assets equaled 0.97 percent of total loans, REO and repossessed assets at March 31, 2009 compared to 0.64 percent at December 31, 2008. At March 31, 2009, the allowance for loan losses as a percentage of total loans was 1.09 percent and as a percentage of non-performing loans was 126 percent, compared to 1.08 percent and 187 percent, respectively, at December 31, 2008.
Conference Call
On April 17, 2009, at 11 a.m., Eastern Time, People's United Financial will host a conference call to discuss this earnings announcement. The call may be heard through www.peoples.com by selecting "Investor Relations" in the "About People's" section on the home page, and then selecting "Conference Calls" in the "News and Events" section. Additional materials relating to the call may also be accessed at People's United Bank's web site. The call will be archived on the web site and available for approximately 90 days.
Selected Financial Terms
In addition to evaluating People's United Financial's results of operations in accordance with generally accepted accounting principles ("GAAP"), management routinely supplements this evaluation with an analysis of certain non-GAAP financial measures, such as the efficiency ratio. Management believes this non-GAAP financial measure provides information useful to investors in understanding People's United Financial's underlying operating performance and trends, and facilitates comparisons with the performance of other banks and thrifts. Further, the efficiency ratio is used by management in its assessment of financial performance specifically as it relates to non-interest expense control.
The efficiency ratio, which represents an approximate measure of the cost required by People's United Financial to generate a dollar of revenue, is the ratio of total non-interest expense (excluding goodwill impairment charges, amortization of acquisition-related intangibles and fair value adjustments, losses on real estate assets and nonrecurring expenses) to net interest income on a fully taxable equivalent basis (excluding fair value adjustments) plus total non-interest income (including the fully taxable equivalent adjustment on bank-owned life insurance income, and excluding gains and losses on sales of assets, other than residential mortgage loans, and nonrecurring income). People's United Financial generally considers an item of income or expense to be nonrecurring if it is not similar to an item of income or expense of a type incurred within the last two years and is not similar to an item of income or expense of a type reasonably expected to be incurred within the following two years.
1Q 2009 Financial Highlights
Summary
- Net income totaled $26.7 million, or $0.08 per share.
- Net interest income on a fully taxable equivalent basis totaled $143.7 million.
- Net interest margin decreased 30 basis points from 4Q08 to 3.25%.
- Average investments, excluding mortgage-backed securities, totaled $2.5 billion, or 14% of average earning assets, and yielded 0.78% in 1Q09.
- Provision for loan losses totaled $7.9 million.
- Net loan charge-offs totaled $6.4 million in 1Q09 compared to $5.7 million in 4Q08.
- The allowance for loan losses was increased by $1.5 million in 1Q09 from 4Q08 levels.
- Non-interest income totaled $72.2 million.
- Security gains in 1Q09 reflect the sale of the Bank's entire holdings of Visa, Inc. Class B shares ($5.6 million).
- Non-interest expense totaled $167.6 million.
- Other non-interest expense includes one-time charges totaling $4.4 million.
- Effective income tax rate was 32.5%.
Commercial Banking
- Average commercial banking loans, excluding shared national credits, increased $220 million, or 11% annualized, from 4Q08 to $8.6 billion.
- Non-performing commercial banking assets totaled $89.9 million, a $27.0 million increase from December 31, 2008.
- The ratio of non-performing commercial banking loans to total commercial banking loans was 0.85% at March 31, 2009 compared to 0.62% at December 31, 2008.
- Net loan charge-offs totaled $3.7 million, or 0.16% annualized, of average commercial banking loans in 1Q09, compared to $3.2 million, or 0.14% annualized, in 4Q08.
Retail & Small Business Banking
- Average residential mortgage loans totaled $3.1 billion, a $70 million decrease from 4Q08, reflecting People's United Financial's strategy to sell essentially all newly-originated loans.
- Average home equity loans increased $71 million, or 15% annualized, from 4Q08 to $2.0 billion.
- Average indirect auto loans totaled $0.2 billion, unchanged from 4Q08.
- Home equity net loan charge-offs totaled $0.6 million, or 0.13% annualized, of average home equity loans.
- Indirect auto net loan charge-offs totaled $1.0 million, or 1.65% annualized, of average indirect auto loans.
Wealth Management
- Wealth Management income declined $1.0 million from 4Q08, primarily reflecting market weakness and the economic environment.
- Assets under custody and management, which are not reported as assets of People's United Financial, totaled $9.5 billion at March 31, 2009.
People's United Financial, a diversified financial services company with $20 billion in assets, provides commercial banking, retail and small business banking, and wealth management services through a network of more than 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; and (10) the successful completion of the integration of Chittenden Corporation. People's United Financial does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Access Information About People's United Financial on the World Wide Web at www.peoples.com.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS
Three Months Ended
March Dec. Sept. June March
31, 31, 30, 30, 31,
(dollars in millions, 2009 2008 2008 2008 2008
except per share data)
Operating Data:
Net interest income $142.8 $153.3 $159.8 $157.0 $166.3
Provision for loan losses(1) 7.9 8.7 6.8 2.4 8.3
Non-interest income 72.2 73.7 74.2 73.4 82.3
Non-interest expense(2) 167.6 165.5 158.7 162.9 219.2
Income before
income tax expense 39.5 52.8 68.5 65.1 21.1
Net income 26.7 35.4 46.0 43.0 15.1
Selected Statistical Data:
Net interest margin(3) 3.25% 3.55% 3.71% 3.56% 3.67%
Return on average assets(3) 0.53 0.71 0.92 0.84 0.29
Return on average
tangible assets(3) 0.57 0.76 0.99 0.91 0.31
Return on average
stockholders' equity(3) 2.1 2.7 3.5 3.3 1.2
Return on average tangible
stockholders' equity(3) 2.9 3.8 5.0 4.7 1.6
Efficiency ratio 73.4 69.0 64.9 66.3 65.0
Per Common Share Data:
Diluted earnings per share $0.08 $0.11 $0.14 $0.13 $0.05
Dividends paid per share 0.15 0.15 0.15 0.15 0.13
Dividend payout ratio 188.4% 141.8% 108.7% 116.1% 293.0%
Book value (end of period) $15.39 $15.45 $15.65 $15.63 $15.70
Tangible book value
(end of period) 10.83 10.87 11.06 11.00 11.08
Stock price:
High 18.18 20.15 21.76 18.52 18.25
Low 15.61 14.75 13.92 15.52 14.29
Close (end of period) 17.97 17.83 19.25 15.60 17.31
Average diluted common shares
outstanding (in millions) 332.78 332.33 331.32 330.19 329.20
(1) Includes a $4.5 million provision for the three months ended March
31, 2008 to align allowance for loan losses methodologies across
the combined organization following the acquisition of Chittenden
Corporation.
(2) Includes merger-related expenses of $36.5 million and other
one-time charges of $14.8 million for the three months ended
March 31, 2008.
(3) Annualized.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
As of and for the Three Months Ended
March Dec. Sept. June March
31, 31, 30, 30, 31,
(dollars in millions) 2009 2008 2008 2008 2008
Financial
Condition Data:
General:
Total assets $20,681 $20,168 $20,042 $20,392 $21,107
Loans 14,648 14,566 14,331 14,366 14,492
Short-term investments(1) 2,756 1,139 2,534 2,265 2,756
Securities 806 1,902 428 866 976
Allowance for loan losses 159 158 155 152 152
Goodwill and other
acquisition-related
intangibles 1,531 1,536 1,537 1,541 1,536
Deposits 14,846 14,269 14,152 14,532 15,160
Borrowings 185 188 152 144 148
Subordinated notes 181 181 180 180 180
Stockholders' equity 5,160 5,176 5,239 5,211 5,219
Non-performing assets 142 94 91 86 67
Net loan charge-offs 6.4 5.7 4.0 2.4 2.8
Average Balances:
Loans $14,603 $14,371 $14,310 $14,425 $14,537
Short-term investments(1) 1,824 1,610 2,325 2,433 2,666
Securities 1,275 1,393 715 907 1,020
Total earning assets 17,702 17,374 17,350 17,765 18,223
Total assets 20,258 20,057 20,057 20,492 20,893
Deposits 14,346 14,117 14,193 14,613 14,952
Total funding liabilities 14,721 14,479 14,520 14,939 15,296
Stockholders' equity 5,164 5,230 5,204 5,202 5,214
Ratios:
Net loan charge-offs to
average loans (annualized) 0.18% 0.16% 0.11% 0.07% 0.08%
Non-performing assets to
total loans, REO and
repossessed assets 0.97 0.64 0.64 0.60 0.46
Allowance for loan losses
to non-performing loans 126.1 186.8 181.6 182.6 244.3
Allowance for loan losses
to total loans 1.09 1.08 1.08 1.06 1.05
Average stockholders'
equity to average total
assets 25.5 26.1 25.9 25.4 25.0
Stockholders' equity
to total assets 25.0 25.7 26.1 25.6 24.7
Tangible stockholders'
equity to tangible assets 19.0 19.5 20.0 19.5 18.8
Total risk-based capital (2) 13.4 13.4 16.2 17.8 24.7
(1) Includes securities purchased under agreements to resell.
(2) 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 March 31,
2009 total risk-based capital ratio is preliminary.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION
March 31, Dec. 31, March 31,
(in millions) 2009 2008 2008
Assets
Cash and due from banks $311.2 $345.1 $522.3
Short-term investments 2,755.7 1,138.8 2,385.7
Total cash and cash equivalents 3,066.9 1,483.9 2,908.0
Securities:
Trading account securities, at
fair value 16.3 21.4 24.9
Securities available for sale, at
fair value 757.5 1,848.3 918.7
Securities held to maturity, at
amortized cost 0.8 0.9 1.4
Federal Home Loan Bank
stock, at cost 31.1 31.1 31.1
Total securities 805.7 1,901.7 976.1
Securities purchased under
agreements to resell - - 370.0
Loans:
Commercial real estate 5,086.7 4,967.3 4,766.8
Commercial 4,239.2 4,226.4 3,977.4
Residential mortgage 3,060.9 3,144.6 3,779.0
Consumer 2,261.0 2,227.4 1,968.8
Total loans 14,647.8 14,565.7 14,492.0
Less allowance for loan losses (159.0) (157.5) (151.7)
Total loans, net 14,488.8 14,408.2 14,340.3
Goodwill and other acquisition-
related intangibles 1,530.6 1,535.8 1,535.9
Premises and equipment 260.4 262.4 269.1
Bank-owned life insurance 230.3 228.6 227.2
Other assets 298.4 347.1 480.1
Total assets $20,681.1 $20,167.7 $21,106.7
Liabilities
Deposits:
Non-interest-bearing $3,238.0 $3,173.4 $3,278.8
Savings, interest-bearing
checking and money market 6,553.0 6,214.7 6,444.2
Time 5,054.7 4,881.3 5,436.8
Total deposits 14,845.7 14,269.4 15,159.8
Borrowings:
Repurchase agreements 170.5 156.7 111.2
Federal Home Loan Bank advances 14.8 15.1 17.1
Other - 16.1 20.0
Total borrowings 185.3 187.9 148.3
Subordinated notes 180.8 180.5 179.5
Other liabilities 308.9 354.4 400.5
Total liabilities 15,520.7 14,992.2 15,888.1
Stockholders' Equity
Common stock ($0.01 par value;
1.95 billion shares authorized;
348.3 million shares,
347.9 million shares and
345.7 million shares issued) 3.5 3.5 3.5
Additional paid-in capital 4,493.9 4,485.1 4,436.1
Retained earnings 998.8 1,022.6 1,049.0
Treasury stock, at cost (3.3
million shares, 3.2 million
shares and 3.2 million shares) (60.5) (57.9) (58.2)
Accumulated other
comprehensive loss (74.7) (75.4) (4.0)
Unallocated common stock of
Employee Stock Ownership Plan (200.6) (202.4) (207.8)
Total stockholders' equity 5,160.4 5,175.5 5,218.6
Total liabilities and
stockholders' equity $20,681.1 $20,167.7 $21,106.7
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March Dec. Sept. June March
31, 31, 30, 30, 31,
(in millions, except 2009 2008 2008 2008 2008
per share data)
Interest and dividend income:
Commercial real estate $68.7 $73.7 $75.2 $74.5 $78.0
Commercial 50.9 55.1 56.8 57.1 60.8
Residential mortgage 40.7 43.2 45.4 48.4 52.9
Consumer 23.9 25.8 27.2 26.8 31.1
Total interest on loans 184.2 197.8 204.6 206.8 222.8
Securities 9.3 8.5 4.8 7.4 10.1
Short-term investments 1.7 6.1 12.5 9.4 18.9
Securities purchased under
agreements to resell - - 0.5 3.9 3.1
Total interest and
dividend income 195.2 212.4 222.4 227.5 254.9
Interest expense:
Deposits 48.2 54.6 58.0 65.8 83.7
Borrowings 0.4 0.7 0.8 0.9 1.1
Subordinated notes 3.8 3.8 3.8 3.8 3.8
Total interest expense 52.4 59.1 62.6 70.5 88.6
Net interest income 142.8 153.3 159.8 157.0 166.3
Provision for loan losses 7.9 8.7 6.8 2.4 8.3
Net interest income after
provision for loan losses 134.9 144.6 153.0 154.6 158.0
Non-interest income:
Investment management fees 7.5 9.6 8.9 9.5 8.8
Insurance revenue 8.3 7.3 8.8 8.1 9.1
Brokerage commissions 3.3 3.2 4.1 4.2 4.5
Total wealth
management income 19.1 20.1 21.8 21.8 22.4
Bank service charges 30.4 31.5 33.1 32.4 30.7
Merchant services income 5.8 6.6 7.5 7.1 6.4
Bank-owned life insurance 1.6 1.5 2.1 1.7 3.0
Net security gains (losses) 5.4 0.2 (0.2) (0.2) 8.5
Net gains on sales of
residential mortgage loans 1.9 0.8 1.5 2.2 2.0
Other non-interest income 8.0 13.0 8.4 8.4 9.3
Total non-interest income 72.2 73.7 74.2 73.4 82.3
Non-interest expense:
Compensation and benefits 88.7 83.2 85.6 86.7 89.1
Occupancy and equipment 28.0 26.5 26.1 26.1 31.6
Professional and
outside service fees 10.7 12.8 11.9 11.8 11.5
Amortization of other
acquisition-related intangibles 5.2 5.5 5.3 5.3 5.2
Merchant services expense 4.9 5.6 6.8 5.9 5.6
Merger-related expenses - - - - 36.5
Other non-interest expense 30.1 31.9 23.0 27.1 39.7
Total non-interest expense 167.6 165.5 158.7 162.9 219.2
Income before
income tax expense 39.5 52.8 68.5 65.1 21.1
Income tax expense 12.8 17.4 22.5 22.1 6.0
Net income $26.7 $35.4 $46.0 $43.0 $15.1
Diluted earnings per
common share $0.08 $0.11 $0.14 $0.13 $0.05
People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
Three months ended March 31, 2009 December 31, 2008
(dollars in Average Yield/ Average Yield/
millions) Balance Interest Rate Balance Interest Rate
Assets:
Short-term
Investments $1,824.3 $1.7 0.37% $1,610.0 $6.1 1.52%
Securities purchased
under agreements to
resell - - - - - -
Securities (2) 1,274.7 9.3 2.94 1,393.1 8.5 2.43
Loans:
Commercial
real estate 5,020.5 68.7 5.47 4,897.3 73.7 6.02
Commercial 4,210.3 51.8 4.93 4,105.9 56.1 5.47
Residential
mortgage 3,119.4 40.7 5.22 3,189.7 43.2 5.42
Consumer 2,252.7 23.9 4.24 2,177.6 25.8 4.73
Total loans 14,602.9 185.1 5.07 14,370.5 198.8 5.53
Total earning
assets 17,701.9 $196.1 4.43% 17,373.6 $213.4 4.91%
Other assets 2,555.6 2,682.9
Total assets $20,257.5 $20,056.5
Liabilities and
stockholders' equity:
Deposits:
Non-interest-
bearing $3,106.1 $- -% $3,096.1 $- -%
Savings, interest-
bearing checking
and money market 6,288.2 12.6 0.80 6,143.6 16.6 1.08
Time 4,951.6 35.6 2.88 4,877.1 38.0 3.11
Total deposits 14,345.9 48.2 1.34 14,116.8 54.6 1.55
Borrowings:
Repurchase
agreements 171.1 0.2 0.46 151.1 0.4 1.11
Federal Home Loan
Bank advances 14.9 0.2 5.26 15.1 0.2 5.32
Other 8.7 - 1.94 15.8 0.1 2.93
Total borrowings 194.7 0.4 0.89 182.0 0.7 1.62
Subordinated notes 180.7 3.8 8.37 180.3 3.8 8.39
Total funding
liabilities 14,721.3 $52.4 1.42% 14,479.1 $59.1 1.63%
Other
liabilities 372.6 347.5
Total liabilities 15,093.9 14,826.6
Stockholders' equity 5,163.6 5,229.9
Total liabilities
and stockholders'
equity $20,257.5 $20,056.5
Net interest income/
spread (3) $143.7 3.01% $154.3 3.28%
Net interest margin 3.25% 3.55%
(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 $0.9 million, $1.0 million and $1.0 million
for the three months ended March 31, 2009, December 31, 2008 and
March 31, 2008, respectively.
People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
March 31, 2008
Three months ended Average Yield/
(dollars in millions) Balance Interest Rate
Assets:
Short-term investments $2,279.1 $18.9 3.31%
Securities purchased under
agreements to resell 387.4 3.1 3.25
Securities (2) 1,019.9 10.1 3.97
Loans:
Commercial real estate 4,749.4 78.0 6.57
Commercial 3,901.3 61.8 6.34
Residential mortgage 3,905.4 52.9 5.42
Consumer 1,980.6 31.1 6.28
Total loans 14,536.7 223.8 6.16
Total earning assets 18,223.1 $255.9 5.62%
Other assets 2,670.1
Total assets $20,893.2
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing $3,145.9 $- -%
Savings, interest-bearing
checking and money market 6,282.8 24.7 1.58
Time 5,523.2 59.0 4.27
Total deposits 14,951.9 83.7 2.24
Borrowings:
Repurchase agreements 116.3 0.8 2.60
Federal Home Loan Bank advances 18.4 0.2 4.84
Other 23.3 0.1 1.67
Total borrowings 158.0 1.1 2.73
Subordinated notes 185.8 3.8 8.14
Total funding liabilities 15,295.7 $88.6 2.32%
Other liabilities 383.2
Total liabilities 15,678.9
Stockholders' equity 5,214.3
Total liabilities and
stockholders' equity $20,893.2
Net interest income/spread (3) $167.3 3.30%
Net interest margin 3.67%
(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 $0.9 million, $1.0 million and $1.0
million for the three months ended March 31, 2009, December
31, 2008 and March 31, 2008, respectively.
People's United Financial, Inc.
NON-PERFORMING ASSETS
March Dec. Sept. June March
31, 31, 30, 30, 31,
(dollars in millions) 2009 2008 2008 2008 2008
Non-accrual loans:
Commercial real estate $53.8 $29.8 $29.9 $31.9 $27.8
Residential mortgage 42.3 24.2 21.1 18.3 15.0
Commercial 16.3 21.1 23.9 23.4 12.8
PCLC 9.0 5.8 6.9 6.4 2.7
Consumer 4.6 3.3 3.2 3.1 3.8
Indirect auto 0.1 0.1 0.1 - -
Total non-accrual loans (1) 126.1 84.3 85.1 83.1 62.1
Real estate owned ("REO") and
repossessed assets, net 15.9 9.4 6.3 3.3 4.9
Total non-performing assets $142.0 $93.7 $91.4 $86.4 $67.0
Non-performing loans as a
percentage of total loans 0.86% 0.58% 0.59% 0.58% 0.43%
Non-performing assets as
a percentage of:
Total loans, REO and
repossessed assets 0.97 0.64 0.64 0.60 0.46
Stockholders' equity and
allowance for loan losses 2.67 1.76 1.70 1.61 1.25
(1) Reported net of government guarantees totaling $7.1 million at
March 31, 2009, $6.5 million at December 31, 2008, $6.4 million
at September 30, 2008, $6.6 million at June 30, 2008 and $5.0
million at March 31, 2008.
PROVISION AND ALLOWANCE FOR LOAN LOSSES
Three Months Ended
March Dec. Sept. June March
31, 31, 30, 30, 31,
(dollars in millions) 2009 2008 2008 2008 2008
Balance at beginning
of period $157.5 $154.5 $151.7 $151.7 $72.7
Charge-offs (6.9) (6.9) (5.0) (3.6) (3.7)
Recoveries 0.5 1.2 1.0 1.2 0.9
Net loan charge-offs (6.4) (5.7) (4.0) (2.4) (2.8)
Provision for loan losses 7.9 8.7 6.8 2.4 8.3
Allowance recorded in the
Chittenden acquisition - - - - 73.5
Balance at end of period $159.0 $157.5 $154.5 $151.7 $151.7
Allowance for loan losses
as a percentage of:
Total loans 1.09% 1.08% 1.08% 1.06% 1.05%
Non-performing loans 126.1 186.8 181.6 182.6 244.3
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
March Dec. Sept. June March
31, 31, 30, 30, 31,
(dollars in millions) 2009 2008 2008 2008 2008
Commercial $1.9 $1.2 $1.1 $0.8 $1.2
Consumer 1.2 0.9 0.6 0.7 0.6
Commercial real estate 1.0 1.5 1.2 0.5 -
Indirect auto 1.0 0.8 0.8 0.3 0.4
PCLC 0.8 0.5 0.2 0.1 0.4
Residential mortgage 0.5 0.8 0.1 - 0.2
Total $6.4 $5.7 $4.0 $2.4 $2.8
Net loan charge-offs to average
loans (annualized) 0.18% 0.16% 0.11% 0.07% 0.08%
