People's United Bank (PBCT) Reports In-Line Q3 EPS

People's United Bank (NASDAQ: PBCT) reported Q3 EPS of $0.33, in-line with the analyst estimate of $0.33.

"Third quarter results reflect our consistent focus on improving relationship profitability across the Company\'s diverse mix of businesses,\ said Jack Barnes, Chairman and Chief Executive Officer. "Another quarter of record earnings generated a return on average tangible common equity of 14.5 percent, up 270 basis points from the prior year quarter. The addition of First Connecticut further strengthens the franchise\'s earnings power as we are confident in achieving the transaction\'s attractive financial returns. Integration has progressed well and the core system conversion will take place in January. Experienced teams at both companies have worked closely together to ensure a seamless transition for clients who will benefit from our full suite of products and services as well as enhanced digital capabilities. We are excited about executing in the market as one team and deepening our well-established presence in the central Connecticut and western Massachusetts regions."

"Operating earnings of $113.8 million for the third quarter increased 27 percent year-over-year and benefited from higher revenues and well-controlled expenses," said David Rosato, Senior Executive Vice President and Chief Financial Officer. "Total revenues of $399 million grew seven percent due to increases in both net interest income and non-interest income. Net interest margin expanded 11 basis points from a year ago and five basis points linked-quarter highlighting the asset sensitivity of the balance sheet. As expected, deposits rebounded in the third quarter with average balances rising $522 million or two percent from the second quarter, while average loans were flat over the same period. Loan growth has been below our expectations this year primarily due to heightened competition, lower demand and above average payoffs. In this environment, we continue to emphasize the importance of improving operating leverage as evidenced by a third quarter efficiency ratio of 56.7 percent. We are particularly pleased with our ability to control costs, especially as we further invest in revenue producing talent and enhanced technology."

For earnings history and earnings-related data on People's United Bank (PBCT) click here.

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