People's United Bank (PBCT) Tops Q1 EPS by 3c

People's United Bank (NASDAQ: PBCT) reported Q1 EPS of $0.37, $0.03 better than the analyst estimate of $0.34.

1Q 2021 Financial HighlightsSummary

• Net income totaled $144.5 million, or $0.33 per common share.
• Net income available to common shareholders totaled $141.0 million.
  • Operating earnings totaled $156.5 million, or $0.37 per common share (See Non-GAAP Financial Measures and Reconciliation to GAAP).

"Our first quarter results marked a solid start to the year and further highlighted the strengths of the franchise," said Jack Barnes, Chairman and Chief Executive Officer. "In February, we announced the merger with M&T, a like-minded partner that has a similar culture, approach to service, complementary offerings, and minimal geographic overlap. This transaction will bring together two high-performing and well-respected institutions to create a leading U.S. super regional bank. The combined company will provide customers greater access to branches, expert bankers, innovative solutions, and enhanced digital capabilities. We are excited about the opportunities ahead and building upon the legacy forged by People's United over 178 years. Importantly, as we work towards the close of the merger, our focus remains steadfast on delivering value to customers, supporting communities, and caring for colleagues."

"We are pleased with the Company's financial performance in the first quarter," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "Operating income of $156.5 million, increased six percent linked-quarter and generated an operating return of average tangible common equity of 13.8 percent. These results included modestly higher net interest income, continued well-controlled expenses, and a negative provision for credit losses primarily driven by an improved economic outlook. Net interest margin of 2.74 percent was 10 basis points lower than the fourth quarter due to lower yields in the securities portfolio, two fewer calendars days and increased excess liquidity. These headwinds were partially offset by a further reduction in deposits costs for the seventh consecutive quarter, and stable loan yields. The loan-to-deposit ratio concluded the quarter at 80 percent as loans decreased $1.1 billion or three percent from December 31, while deposits grew $1.3 billion or three percent. The decline in period-end loans was largely driven by $586 million in lower retail balances, and a $431 million reduction in mortgage warehouse from a record level at year-end. Conversely, the loan portfolio benefited from a net increase in PPP balances of $288 million and continued solid results in LEAF. Deposit growth reflected federal stimulus payments, PPP funds and strong inflows in our municipal business."

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

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