Chittenden Bank parent People’s United Financial Reports Third Quarter Earnings

first_imgPeople’s United Financial Reports Third Quarter Earnings of $46 Million or $0.14 Per Share.greyBox { padding:20px 0px 20px 20px; background-color:#cfcfcf;}.boxText { font-size:11px; font-weight:bold;}.boxTextHeading { font-size:13px; font-weight:bold;}#auto { display:block;}#banking { display:none;}#energy { display:none;}#entertainment { display:none;}#government { display:none;}#health { display:none;}#heavyindustry { display:none;}#investors { display:none;}#international { display:none;}#multicultural { display:none;}#retail { display:none;}#sports { display:none;}#technology { display:none;}#technology { display:none;}#travel { display:none;}#trade { display:none;}#businessservices { display:none;}#publicissues { display:none;}#prndirect { display:none;}#prtoolkit { display:none;} .bottomBlueBox { border-bottom: solid 1px #B7C5DD; background-color: #f3f6fa;}.topBlueBox { border-top: solid 1px #B7C5DD; background-color: #f3f6fa;}.leftBlueBox { border-left: solid 1px #B7C5DD; background-color: #f3f6fa;}.rightBlueBox { border-right: solid 1px #B7C5DD; background-color: #f3f6fa;}.bottomBlueBox { border-bottom: solid 1px #B7C5DD; background-color: #f3f6fa;}.blueText { font-size:10px; color:#336699;}–>// Get the year for the footervar today = new Date();var thisYear = today.getFullYear();function getLinkName(iconName) { return iconName + ‘- ‘ + document.getElementById(‘headline’).innerHTML;}var images_on = new Array();images_on[0] = new Image(41,21);images_on[0].src = “/news/images/menu/1home_on.gif”;images_on[1] = new Image(81,21);images_on[1].src = “/news/images/menu/1uplo_on.gif”;images_on[2] = new Image(81,21);images_on[2].src = “/news/images/menu/1toda_on.gif”;images_on[3] = new Image(67,21);images_on[3].src = “/news/images/menu/1mult_on.gif”;images_on[4] = new Image(106,21);images_on[4].src = “/news/images/menu/1indu_on.gif”;images_on[5] = new Image(77,21);images_on[5].src = “/news/images/menu/1inte_on.gif”;images_on[6] = new Image(78,21);images_on[6].src = “/news/images/menu/1ours_on.gif”;images_on[7] = new Image(83,21);images_on[7].src = “/news/images/menu/1inve_on.gif”;images_on[8] = new Image(60,21);images_on[8].src = “/news/images/menu/1abou_on.gif”;images_on[9] = new Image(67,21);images_on[9].src = “/news/images/menu/1cont_on.gif”;images_on[10] = new Image(77,13);images_on[10].src = “../images/2aind_on.gif”;images_on[11] = new Image(34,21);images_on[11].src = “/news/images/menu/1rssf_on.gif”;var images_off = new Array();images_off[0] = new Image(41,21);images_off[0].src = “/news/images/menu/1home_off.gif”;images_off[1] = new Image(81,21);images_off[1].src = “/news/images/menu/1uplo_off.gif”;images_off[2] = new Image(81,21);images_off[2].src = “/news/images/menu/1toda_off.gif”;images_off[3] = new Image(67,21);images_off[3].src = “/news/images/menu/1mult_off.gif”;images_off[4] = new Image(106,21);images_off[4].src = “/news/images/menu/1indu_off.gif”;images_off[5] = new Image(77,21);images_off[5].src = “/news/images/menu/1inte_off.gif”;images_off[6] = new Image(78,21);images_off[6].src = “/news/images/menu/1ours_off.gif”;images_off[7] = new Image(83,21);images_off[7].src = “/news/images/menu/1inve_off.gif”;images_off[8] = new Image(60,21);images_off[8].src = “/news/images/menu/1abou_off.gif”;images_off[9] = new Image(67,21);images_off[9].src = “/news/images/menu/1cont_off.gif”;images_off[10] = new Image(77,13);images_off[10].src = “../images/2aind_off.gif”;images_off[11] = new Image(34,21);images_off[11].src = “/news/images/menu/1rssf_off.gif”;function imgOff(id, idx){ var getimage = document.getElementById(id); getimage.src = images_off[idx].src;}function imgOn(id, idx){ var getimage = document.getElementById(id); getimage.src = images_on[idx].src;} var currentView = “auto”; function showRow(row) { hideRow(currentView); var theRow = document.getElementById(row); theRow.style.display = “block”; currentView = row; } function hideRow(row) { var theRow = document.getElementById(row); theRow.style.display = “none”; } function disp(feedId) { divFeed = document.getElementById(feedId); if(divFeed) { if(divFeed.style.display == ‘none’) { divFeed.style.display = ‘inline’; } else { divFeed.style.display = ‘none’; } } if(feedId==’n1′) { document.getElementById(‘n2’).style.display = ‘none’; } else { document.getElementById(‘n1’).style.display = ‘none’; } }       People’s United Financial Reports Third Quarter Earnings of $46 Million or $0.14 Per Share Quarter Characterized by Strong Capital Position and Solid AssetQuality BRIDGEPORT, Conn., Oct. 16 /PRNewswire-FirstCall/ — People’s UnitedFinancial, Inc. (Nasdaq: PBCT) has announced net income of $46.0 million,or $0.14 per share, for the third quarter of 2008, compared to $43.0million, or $0.13 per share, for the second quarter of 2008 and $57.6million, or $0.20 per share, for the third quarter of 2007. Earnings forthe second and third quarters of 2008 reflect continued low levels of netloan charge-offs and further benefit from previously announcedcost-reduction initiatives. People’s United Financial completed its acquisition of ChittendenCorporation on January 1, 2008. Accordingly, People’s United Financial’sthird quarter 2007 results do not include the results of ChittendenCorporation and are not directly comparable to the current quarter’searnings. For the third quarter of 2008, return on average tangible assets was0.99 percent and return on average tangible stockholders’ equity was 5.0percent, compared to 0.91 percent and 4.7 percent, respectively, for thesecond quarter of 2008. The Board of Directors of People’s United Financial declared a $0.15per share quarterly dividend, payable November 15, 2008 to shareholders ofrecord on November 1, 2008. Based on the closing stock price on October 15,2008, the dividend yield on People’s United Financial common stock is 3.9percent. President and Chief Executive Officer, Philip R. Sherringham stated,”Our strength and stability have clearly differentiated our bank in thewake of the current economic and financial sector turmoil. Our performancethis quarter continues to be a reflection of our fortress balance sheet andcontinued strong asset quality, and was further bolstered by an improvementin the net interest margin.” Sherringham added, “We continue to generate healthy loan growth acrossour core lending businesses. Our average commercial banking and home equityloan portfolios increased $146 million, or 6 percent annualized, from thesecond quarter of 2008.” Sherringham concluded, “We remain firmly committed to our goal ofenhancing our premier regional banking franchise. While our strategic focusremains on growth through acquisitions, we continue to invest in ourcommercial, retail banking and wealth management businesses throughout NewEngland. Our balance sheet continues to be funded almost entirely bydeposits and stockholders’ equity. Given the many challenges of today’senvironment, the strength of our capital and liquidity positions, assetquality and earnings set us apart from most in the industry.” “Key drivers of the company’s performance this quarter were an increasein the net interest margin, expense control and ongoing strong assetquality,” said Paul D. Burner, Senior Executive Vice President and ChiefFinancial Officer. “The 15 basis point improvement in the net interestmargin from the second quarter of 2008 reflects the benefits fromdisciplined loan and deposit pricing. Non-interest expense decreasedslightly from the second quarter of 2008, primarily reflecting thecontinued benefit from cost-savings initiatives announced earlier thisyear.” At September 30, 2008, non-performing assets totaled $91.4 million, a$5.0 million increase from June 30, 2008. Non-performing assets equaled0.64 percent of total loans, REO and repossessed assets, compared to 0.60percent at June 30, 2008. The allowance for loan losses as a percentage oftotal loans increased to 1.08 percent at September 30, 2008 compared to1.06 percent at June 30, 2008. Third quarter net loan charge-offs totaled $4.0 million compared to$2.4 million in the second quarter of 2008. Net loan charge-offs as apercent of average loans on an annualized basis were 0.11 percent in thethird quarter of 2008 compared to 0.07 percent in this year’s secondquarter. The provision for loan losses this quarter reflects a $2.8 millionincrease in the allowance for loan losses to $154.5 million at September30, 2008. Commenting on asset quality, Burner stated, “While we expect the levelof non-performing assets to fluctuate in response to changing economic andmarket conditions, we remain comfortable with the current levels and do notsee any pervasive weakness in any sector of the loan portfolio. The ratioof non-performing loans to total loans was stable at 0.59 percent atSeptember 30, 2008 and net loan charge-offs remain extremely low. We feelthat the loan portfolio continues to benefit from our stringentunderwriting standards.” Conference Call On October 17, 2008, at 11 a.m., Eastern Time, People’s UnitedFinancial will host a conference call to discuss this earningsannouncement. The call may be heard through http://www.peoples.com(link is external) by selecting”Investor Relations” in the “About People’s” section on the home page, andthen selecting “Conference Calls” in the “News and Events” section.Additional materials relating to the call may also be accessed at People’sUnited Bank’s web site. The call will be archived on the web site andavailable for approximately 90 days. Fourth Quarter Earnings Release People’s United Financial expects to release its fourth quarter andfull year 2008 earnings on January 22, 2009. Selected Financial Terms In addition to evaluating People’s United Financial’s results ofoperations in accordance with generally accepted accounting principles(“GAAP”), management routinely supplements this evaluation with an analysisof certain non-GAAP financial measures, such as the efficiency ratio.Management believes this non-GAAP financial measure provides informationuseful to investors in understanding People’s United Financial’s underlyingoperating performance and trends, and facilitates comparisons with theperformance of other banks and thrifts. The efficiency ratio, which represents an approximate measure of thecost required by People’s United Financial to generate a dollar of revenue,is the ratio of total non-interest expense (excluding goodwill impairmentcharges, amortization of acquisition-related intangibles and fair valueadjustments, losses on real estate assets and nonrecurring expenses) to netinterest income on a fully taxable equivalent basis (excluding fair valueadjustments) plus total non-interest income (including the fully taxableequivalent adjustment on bank-owned life insurance income, and excludinggains and losses on sales of assets, other than residential mortgage loans,and nonrecurring income). People’s United Financial generally considers anitem of income or expense to be nonrecurring if it is not similar to anitem of income or expense of a type incurred within the last two years andis not similar to an item of income or expense of a type reasonablyexpected to be incurred within the following two years. Managementconsiders the efficiency ratio to be more representative of People’s UnitedFinancial’s ongoing operating efficiency, as the excluded items aregenerally related to external market conditions and non-routinetransactions. 3Q 2008 Financial Highlights Summary — Net income totaled $46.0 million, or $0.14 per share. — Net interest income on a fully taxable equivalent basis totaled $160.8 million. — Net interest margin increased 15 basis points from 2Q08 to 3.71%. — Provision for loan losses totaled $6.8 million. — Net loan charge-offs totaled $4.0 million in 3Q08 compared to $2.4 million in 2Q08. — The allowance for loan losses was increased by $2.8 million in 3Q08 from 2Q08 levels. — Non-interest income totaled $74.2 million, a 1% increase from 2Q08. — Non-interest expense totaled $158.7 million, a $4.2 million, or 3%, decrease from 2Q08. — Effective income tax rate was 32.9%. Commercial Banking — Average commercial banking loans increased $73 million from 2Q08 to $8.9 billion. — Commercial banking non-performing assets totaled $64.3 million. — The ratio of commercial banking non-performing loans to total commercial banking loans was 0.68% at September 30, 2008. — Net loan charge-offs totaled $2.5 million, or 0.11% annualized, of average commercial banking loans. Retail & Small Business Banking — Average residential mortgage loans totaled $3.4 billion. — Average home equity loans increased $73 million from 2Q08 to $1.8 billion. — Average indirect auto loans averaged $0.2 billion. — Home equity net loan charge-offs totaled $0.2 million, or 0.03% annualized, of average home equity loans. — Indirect auto net loan charge-offs totaled $0.8 million, or 1.41% annualized, of average indirect auto loans. Wealth Management — Insurance revenue increased 9% from 2Q08, primarily reflecting seasonal renewals. — Assets under management totaled $10 billion. People’s United Financial, a diversified financial services companywith $20 billion in assets, provides consumer and commercial bankingservices through a network of more than 300 branches in Connecticut,Vermont, New Hampshire, Massachusetts, Maine and New York. Through itssubsidiaries, People’s United Financial provides equipment financing, assetmanagement, brokerage and financial advisory services, and insuranceservices. Certain statements contained in this release are forward-looking innature. These include all statements about People’s United Financial’splans, objectives, expectations and other statements that are nothistorical facts, and usually use words such as “expect,” “anticipate,””believe” and similar expressions. Such statements represent management’scurrent beliefs, based upon information available at the time thestatements are made, with regard to the matters addressed. Allforward-looking statements are subject to risks and uncertainties thatcould cause People’s United Financial’s actual results or financialcondition to differ materially from those expressed in or implied by suchstatements. Factors of particular importance to People’s United Financialinclude, but are not limited to: (1) changes in general, national orregional economic conditions; (2) changes in interest rates; (3) changes inloan default and charge-off rates; (4) changes in deposit levels; (5)changes in levels of income and expense in non-interest income and expense –>last_img read more

Rising Role of Renewables and Gas Setting the Pace for Rapid Change in Global Energy Markets

first_imgRising Role of Renewables and Gas Setting the Pace for Rapid Change in Global Energy Markets FacebookTwitterLinkedInEmailPrint分享New York Times:LONDON — From the rise of renewable power to the transformation of the United States into a heavyweight producer of oil and gas, the global energy market, normally slow to evolve, is going through major upheaval.That is the assessment of Fatih Birol, the executive director of the International Energy Agency, the organization based in Paris that is publishing its annual World Energy Outlook on Tuesday.The report does not make for easy bedtime reading: It is 763 pages long and stuffed with data-laden charts and tables.Still, the document tries to project current trends as far out as 2040, and sees an industry at the nexus of various powerful trends.The United States, for instance, has shifted from being an energy-dependent importer to a new role as one of the world’s biggest producers of oil and gas, the report says. But concerns about greenhouse-gas emissions have clouded the future of fossil fuels. That has encouraged the development of alternatives like solar and wind power, which increasingly compete with traditional energy sources.Here are some of the most important themes to be found in the report.‘Energy Renaissance’Energy production in the United States will continue to shake up the global oil and natural gas markets, and benefit the country’s economy.By the 2030s, largely because of production from shale-rock formations, the United States is expected to produce more than 30 million barrels of oil and gas a day, the report says. That is 50 percent more than any other country has ever produced in a single year.That is a sharp shift from the country’s position just a decade ago, when it was a major importer of oil.The shale industry has gone through a “trial by fire” in recent years, the report says, referring to a sharp falloff in the price of oil from more than $100 a barrel to as low as around $30 a barrel. It is now above $60 a barrel.That has transformed the shale sector, and it is “leaner and hungrier” than it was before the price crash, the report says. As a result, it is better able to quickly react to any sign of higher prices. That is crucial, as the OPEC oil cartel tries to manage its production levels to bolster prices.The Coming Gas Shake-UpChanges in how gas is transported and traded are having a major effect, on the energy industry and the environment.As the United States increases its gas production — it is now on track to surpass traditional giants like Qatar and Russia and become the world’s largest exporter of liquefied natural gas, or L.N.G. — it is also exporting what the report calls a disruptive “mind-set about how gas markets should operate.”Gas has historically been sold through long-term contracts pegged to oil prices. That has particularly been the case in Asia, the key market for L.N.G., which is expected to eventually dominate the international gas trade.But as the United States becomes a bigger force in gas markets, it is also helping to break down the existing system. Over time, the report forecasts that gas will be traded more widely and freely, potentially pushing down prices and making it more attractive to developing countries like India and China.Greater use of gas could bring major environmental benefits. When burned, it produces less of the carbon emissions associated with climate change than coal, and lower levels of other pollutants. Mr. Birol said, for instance, said that the decision by power plants in United States to switch from burning coal to gas was largely responsible for holding global emissions roughly steady in recent years (although they appear poised to rise this year).There is still work to be done, the report says. The gas industry needs to address emissions of methane that undermine that type of fuel’s environmental claims. “Natural gas is a viable exit ramp off of fossil fuels only if it cleans up its methane pollution, which now seriously undercuts its claimed climate advantages,” said Fred Krupp, president of the Environmental Defense Fund, an American environmental group.Gains for RenewablesOne factor that may hamper the growth of gas: rapidly falling costs of renewable sources of energy like wind and solar installations.The average cost of electricity generated over the life of a solar power plant declined by a stunning 70 percent from 2010 to 2016, according to the agency’s report. Wind costs declined by 25 percent in that period.The report forecasts that these technologies will only become less expensive over the next 25 years, squeezing fossil fuels, which are widely used to generate electric power.Already, power from new wind installations in India and China is cheaper than new gas-fired power plants. A similar situation is developing with solar power, the report says.Still, fossil fuels will not vanish anytime soon. It is much more difficult to reduce the use of coal, gas and oil in sectors like transportation and industry than it is in power generation, and the share of fossil fuels used to meet overall energy demand will be 75 percent in 2040, compared with 81 percent last year, according to the agency’s main scenario.And, the report adds, greenhouse gas levels still appear to be climbing above the threshold required to meet international goals like those established in the 2015 Paris climate accords.China’s Outsize RoleBecause of China’s scale as a consumer of energy, the choices that the country makes will be felt globally, the report says.China could overtake the United States as the world’s largest consumer of oil as soon as 2030. Of all the new solar and wind power installations to be added through 2040, a third could be in China. In that period, the country could also end up with 320 million electric vehicles, more than a third of the global total.“China’s choices,” the report says, “will play a huge role in determining global trends, and could spark a faster clean energy transition.”More: “America’s ‘Renaissance’ to Gains for Renewables: Global Energy Trends”last_img read more

NCUA to release risk-based capital proposal today

first_imgCUNA continues to press agency for significant changes to the plan.NCUA is expected to unveil its revised risk-based capital proposal during its board meeting today.The agency has agreed to let CUNA and a limited number of other parties to record today’s much-anticipated session on risk-based capital, CUNA’s News Now reports.The video cameras are a significant change from the agency’s standard operating procedures for board meeting.CUNA President/CEO Jim Nussle thanked NCUA for agreeing to CUNA’s request to video record the important RBC discussions. He noted that CUNA will post the video to cuna.org and announce through News Now when the recording is available.“We look forward to the meeting, and hope that live-streaming will become available in the near future to best serve all those in the credit union system,” Nussle says.CUNA continues to press the agency for significant changes on:Risk weightingsA lower risk-based capital component for well-capitalized credit unions;Several years for implementation;Clarification of the very limited use of additional capital requirements; andHaving good will and credit unions’ National Credit Union Share Insurance Fund deposit factored into risk-based capital calculations. continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more