A colleague from Sandler told me that you can make a lot of money off of PBCT. Just short the stock. He says People's United Bank has the lowest customer satisfaction among all of the banks they cover. Obviously they know what they are doing up in Bridgeport.
Total earnings for the third quarter increased by a whopping negative $3.6 million. It is a good thing shares were bought back at an overpriced 2x TBV, or per share earnings wouldn't have looked as spectacular as they do. Also, the CEO should be commended for increasing TBV to $8,14 today, all the way up from a very low $8.77 at this time last year. Maybe he can get TBV up into the mid $7 range by the end of the year.
It is also nice to see that the bank is driving off all of those checking account customers that they pay no interest to. Who needs that free money anyway. At least loan loss reserves are up.
Everyone in the executive offices should be getting their full performance bonuses this year.
It is absolutely hilarious that the CEO of PBCT thinks that he increased the earnings because the EPS went to .20 from .19 last year. Total earnings declined by $2.5 million! That is a significant decline in an improving banking environment. The only reason EPS went up was because of share buybacks, (at an over inflated price too) . The CEO is gloating that the numbers are all so good now. In reality, Peoples has significantly declining earnings and is losing market share. Only per share numbers are better because there are now less shares. If PBCT would have bought back all but one share of stock and only made $1 instead of $62 mil, EPS would have been $1 instead of 20 cents, and Barnes & Co. would have announced that he quintupled the earnings. That guy is just too smart.
Also, analysts call Barnes the man who never met a fee he didn't like. He wants his people to find ways to sneak fees into every aspect of the bank. Especially ones that customers don't notice. The only problem is that the customers are noticing and they don't like it and they don't like Peoples United Bank. That is why earnings are declining. It is time for a new CEO with a different perspective on how a bank should make money. Buying back overpriced shares and charging fees until customers switch banks just doesn't cut it in the real world.