Post-Earnings Insight - People's United Financial

LONDON, October 31, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on People's United Financial Inc. (NASDAQ: PBCT). On October 16, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on People's United Financial Inc. During Q3 FY14, the company's net income increased $3.1 million on a Y-o-Y basis, and its diluted EPS increased $0.02 from the preceding year quarter. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, People's United Financial Inc. reported total revenues of $317.3 million, compared to $313.9 million in the same period last year. The company's net revenues during the reported quarter came marginally above Bloomberg analysts' forecast of $314.8 million. The company's net interest income on a fully taxable equivalent basis increased to $233.3 million in Q3 FY14, from $227.8 million in the prior-year quarter. While, non-interest income decreased to $84.0 million, from $86.1 million in Q3 FY13. Further, the company's non-interest expense totaled to $208.8 million for Q3 FY14, compared to $212.5 million in the corresponding quarter last year. Net interest margin for the reported quarter stood at 3.05%, as compared with 3.30% in Q3 FY13. Additionally, average loans as of September 30, 2014 were $25,611 million, compared to $22,916 million in the same period last year. The company's net loan charge-offs as a percentage of average total loans on an annualized basis were 0.13% in Q3 FY14, compared to 0.17% in the year-ago period. The free research on PBCT can be downloaded as in PDF format at:  

www.Investor-Edge.com/PBCTFreeReport

People's United Financial Inc. reported Q3 FY14 operating earnings of $63.0 million, as compared to $60.8 million in the prior-year quarter. The company's net income broadened to $61.6 million, or $0.21 per diluted share in Q3 FY14, from $58.5 million, or $0.19 per diluted share in the same quarter last year. Analysts from Bloomberg had expected the company to report net income of $63.0 million, or $0.21 per diluted share in Q3 FY14.

Jack Barnes, President and CEO of People's United Financial Inc., stated that strong business fundamentals, ongoing ability to leverage the company's brand in attractive markets, and prospects for growth continue to be the foundations of the company's operating strength. He also said that the reported quarter's performance reflects annualized loan growth of 8% and organic deposit growth of 5%, driven by ongoing strategic investments in people, products, services and the company's strong commitment to fostering customer relationships across the franchise. At the same time, the company continues to maintain superior asset quality metrics, he further commented. Mr. Barnes mentioned that the increase in People's United Financial's net interest income over the past several quarters primarily reflects growth in the loan portfolio despite a challenging rate environment and declining income on acquired loans. Sign up and read the free analyst's notes on PBCT at:

www.Investor-Edge.com/PBCT-31102014

Kirk W. Walters, Senior Executive Vice President and CFO added that the Company's Q3 FY14 results reflect its ongoing revenue growth and effective expense control. He further said that People's United Financial's net interest margin continues to be impacted by strong loan originations at rates lower than the company's existing portfolio. Mr. Walters stated that the company's management is pleased with its ability to manage operating expenses over the past several quarters in consideration of the number of strategic investments the bank continues to make in its people and services and also considering increasing regulatory compliance costs.

The company declared a quarterly dividend of $0.165 per share, which is payable on November 15, 2014 to its shareholders of record on November 01, 2014.

Stock Performance 

On the following day of the earnings release, October 17, 2014, People's United Financial Inc.'s stock ended the session at $13.82, down 2.19% and witnessed mostly a positive momentum since then. On the last close, Thursday, October 30, 2014; it finished at $14.42, 0.07% above its previous day's closing price, after vacillating between $14.28 and $14.48. A total of 2.68 million shares were traded, which was below its three months average volume of 3.14 million shares. Over the last one month and past three months, the company's shares have fallen by 0.35% and 2.17%, respectively. Also, the stock has declined 4.63% from the beginning of 2014. Shares in People's United Financial Inc. closed below their 50-day and 200-day moving averages of $14.61 and $14.60, respectively. Furthermore, the stock traded at a PE ratio of 17.11 and has a Relative Strength Index (RSI) of 51.53. Visit Investor-Edge and access the latest research on PBCT at:

www.Investor-Edge.com/PBCTEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month People's United Financial Inc. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on PBCT is available at:

www.Investor-Edge.com/PBCTInsiderTrading

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