People’s United Financial, Inc. Earnings Cheat Sheet: Fourth Straight Quarter of Profit Growth

The Cheat Sheet

S&P 500 component People’s United Financial, Inc. reported its results for the third quarter. People’s United Financial is a savings and loan holding company for People’s United Bank, a diversified financial services firm. The company provides consumer and commercial banking as well as wealth management services to individuals and corporate customers.

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People’s United Financial Earnings Cheat Sheet for the Third Quarter

Results: Net income for the savings and loan company rose to $52.9 million (15 cents per share) vs. $24.1 million (7 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Noninterest income was $84.7 million last quarter.

Actual vs. Wall St. Expectations: PBCT reported adjusted net income of 19 cents per share. By that measure, it beat the mean analyst estimate of 17 cents per share.

Quoting Management: “Our performance this quarter continues to reflect improvements in our operating metrics, including another solid quarter of organic loan and deposit growth throughout our franchise, and encouraging trends in asset quality,” stated Jack Barnes, President and Chief Executive Officer. “In fact, on an annualized basis and excluding the effect of the Danvers acquisition, loans and deposits increased 15 percent and six percent, respectively, from June 30, 2011; our net interest margin remains above four percent; and our efficiency ratio improved to 63.1 percent from 71.2 percent in the year-ago quarter.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose more than threefold and in the first quarter, the figure rose more than threefold.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is 18 cents per share, a drop from 19 cents. For the fiscal year, the average estimate has moved down from 66 cents a share to 65 cents over the last thirty days.

Competitors to Watch: Northeast Bancorp/ME , Naugatuck Valley Financial Corp. , Berkshire Hills Bancorp, Inc. , Rockville Financial New Inc (RCKBD), New Hampshire Thrift Bancshares, Inc. , Brookline Bancorp, Inc. , NewAlliance Bancshares, Inc. , SI Financial Group, Inc. , Oneida Financial Corp. , and Westfield Financial, Inc. .

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(Source: Xignite Financials)

 

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