This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

People's United Financial Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: PBCT

With that, I'll turn the call over to Jack.

John P. Barnes

Thank you, Peter, and good afternoon, everyone. We appreciate you joining us today. On Slide 2, we provide an overview of our second quarter results. For the quarter, operating earnings were $67.2 million or $0.20 per share, up from $60.6 million or $0.18 per share in the first quarter. Net income after -- net income for the quarter, including non-operating items, was $64.8 million or $0.19 per share. The net interest margin declined to 3.97% compared to the 4.01% in the first quarter. The decline in the margin is the result of lower loan yields and higher levels of securities purchased earlier in the quarter in anticipation of our receipt of the proceeds for the Citizens branch transaction late in the quarter. This is partially offset by cost recovery income related to negotiated settlements and payoffs in the acquired loan portfolio.

Loan growth, including runoff in the acquired portfolios, amounted to 2.3% on an annualized basis, which was entirely funded by deposit growth.

Originated loan growth was strong and amounted to 11.2% on an annualized basis. Noninterest income increased $3.3 million compared to the first quarter, reaching $75.7 million. This increase was primarily due to growth in cash management fees, operating lease income, prepayment fees and gain on sale of acquired loans.

The efficiency ratio improved to 61.5% from 63.2% in the first quarter. This is a result of improved operating leverage from higher revenues and lower expenses. Capital ratios remained strong with the tangible equity ratio at 11.5% for the second quarter. We continue to make progress deploying our capital through balance sheet growth and share repurchase activity.

On Slide 3, we discussed several recent initiatives. Most importantly, we continue to expand our presence in key growth markets such as the New York metro area. We recently completed the acquisition of 57 Citizens branches in the greater New York metro area and rebranded all of the acquired branches over the weekend of June 22. 53 of the branches are in Stop & Shop supermarkets and 4 are traditional branches.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs