People's United Takes Hit From Interest Rates

NEW YORK (TheStreet) -- Even regional banks, generally believed to less exposed than national financial institutions, are taking their share of shots to the head these days.

Take New England's People's United Financial (PBCT Quote). The company reported a 36% decline in second-quarter profit, as low interest rates and its asset-sensitive balance sheet start to weigh on operations.

During the quarter, People's earned $27.4 million, or 8 cents a share compared with $43 million, or 13 cents, in the year-ago period.

The company's return on tangible assets was .57% and its average tangible stockholders' equity was 3%.

People's also declared a 15 cent per share quarterly dividend, payable Aug. 15 to shareholders of record on Aug. 1.

Shares of People, which operated 300 branches across New England, closed up 2% to $15.74.