People's United Bank (PBCT) Tops Q1 EPS by 10c

People's United Bank (NASDAQ: PBCT) reported Q1 EPS of $0.33, $0.10 better than the analyst estimate of $0.23.

"The nation is facing significant challenges from the spread of COVID-19," said Jack Barnes, Chairman and Chief Executive Officer. "People's United is committed to supporting those experiencing hardship due to the pandemic. We are in this together, and difficult times often bring forth the very best in all of us. We have witnessed this each day through the dedication of our employees, including our branch and call center personnel continuing to serve customers despite unprecedented conditions, and our IT group who successfully enabled the majority of our workforce to do their jobs remotely. The Company has always had a long-term view, predicated on a conservative underwriting philosophy, superior service, a diversified business mix and prudent liquidity and capital management, which has served it well through various operating environments. We are confident this strategy will once again show the strength of the franchise as it plays a critical role in supporting the financial health of individuals, businesses and communities throughout this crisis and beyond."

"While the economic impact of COVID-19 will have a meaningful effect on results for the remainder of 2020, our first quarter performance marked a strong start to the year," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "Operating income of $141 million increased 15 percent from a year ago and generated an operating return on tangible common equity of 13.2 percent. We continued to produce positive operating leverage as evidenced by a 330 basis point improvement year-over-year in the efficiency ratio to 54.0 percent. Total revenues of $520 million were up 22 percent driven by both recent acquisitions and organic growth. Non-interest income had another good quarter primarily due to a $16.9 million gain related to the sale of $492 million of loans held-for-sale previously acquired in the United transaction as well as a continued high-level of customer interest rate swap income. Period-end loans and deposits increased two percent and three percent, respectively, from year-end. Loans benefited from strong results in mortgage warehouse lending and large corporate, partially offset by our planned reduction in residential mortgages. Deposit growth was driven primarily by solid results in both our municipal and commercial businesses and overall deposit costs decreased 11 basis points linked-quarter."

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

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