Upcoming AWS Coverage on New York Community Bancorp Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 31, 2017 / Active Wall St. announces its post-earnings coverage on People's United Financial, Inc. (NASDAQ: PBCT). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 19, 2017. The Bridgeport, Connecticut-based Company's common earnings per common share rose on a year-over-year basis, outperforming Wall Street's estimates. Register with us now for your free membership at:

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One of People's United Financial's competitors within the Savings & Loans space, New York Community Bancorp, Inc. (NYSE: NYCB), reported its earnings release for the three and twelve months ended December 31, 2016, on Wednesday, January 25, 2017. AWS will be initiating a research report on New York Community Bancorp in the coming days.

Today, AWS is promoting its earnings coverage on PBCT; touching on NYCB. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=PBCT

http://www.activewallst.com/registration-3/?symbol=NYCB

Earnings Reviewed

During Q4 FY16, People's United's total interest on loans grew to $248.7 million in Q4 FY16 from $239.9 million in Q4 FY15. Interest and dividend income for the reported quarter totaled $286.3 million compared to $274.2 million in Q4 FY15. The Company's total interest expenses increased to $39.5 million in Q4 FY16 from $35.4 million in Q4 FY15. People's United's net interest income also rose during the reported quarter to $246.8 million from $238.8 million in Q4 FY15. Furthermore, total non-interest income for the reported quarter came in at $84.2 million compared to $93.3 million in the year ago same quarter.

The holding company for People's United Bank reported net income of $75.9 million, or $0.24 per common share, in Q4 FY16 compared to $70.8 million, or $0.23 per common share, in Q4 FY15. The Company's quarterly net income was in-line with market consensus estimates.

In full year FY16, People's United's net interest income increased to $972.2 million from $932.1 million in FY15. However, the Company's total noninterest income was down to $342.7 million in FY16 from $352.4 million in the previous year. Furthermore, net income for the reported quarter came in at $281.0 million, or $0.92 per common share, compared to $260.1 million, or $0.86 per common share, in FY15.

Earnings Metrics

During the reported quarter, the Company's return on average assets came in flat at 0.75% from the previous year's comparable quarter. The return on average common equity came in at 6.1% in Q4 FY16, which was marginally above the 6.0% reported in the year ago comparable period. Moreover, return on average tangible common equity for the reported quarter also remained unchanged at 10.7% in Q4 FY16 from the year ago same quarter.

The People's United's efficiency ratio was 59.3% in Q4 FY16 compared to 61.0% in Q4 FY15. The Company's net interest margin fell during Q4 FY16 to 2.78% from 2.87% in Q4 FY15. However, the tangible common equity to tangible assets ratio remained unchanged from the prior year's corresponding quarter and was 7.2% at December 31, 2016. The Company's common equity tier 1 capital and total risk-based capital ratios were 9.9% and 12.5%, respectively, as on December 31, 2016.

Balance Sheet Analyzed

People's United's average loans balance at the end of Q4 FY15 was $29.35 billion compared to $27.85 billion at the end of last year's comparable quarter. In Q4 FY14, the yield on average loans was 3.44% compared to 3.49% in Q4 FY15. Total average interest-earning assets for the quarter ended December 31, 2016, were $36.73 billion versus $34.23 billion recorded in the prior year's same period. In Q4 FY16, People's United's interest spread was 2.76% compared to 2.85% in Q4 FY15. Furthermore, average total deposits increased to $29.77 billion in Q4 FY16 from $28.48 billion in the last year's comparable quarter.

The Company had total non-performing assets of $167.3 million at December 31, 2016, compared to $181.5 million as on December 31, 2015. Non-performing assets as a percent of originated loans, REO and repossessed assets was 0.57% at December 31, 2016, versus 0.66% as on December 31, 2015. In Q4 FY16, provision for loan losses fell to $7.7 million from $9.7 million in the year ago same quarter.

Dividend

In its earnings press release, People's United Board of Directors announced a quarterly dividend of $0.17 per share. The dividend is payable February 15, 2017, to shareholders of record on February 01, 2017.

Outlook

For full year FY17, the Company expects loans to grow in the range of 5% to 7%, while deposits are anticipated to rise in the range of 4% to 6%. Net interest income and non-interest income for the upcoming financial year is projected to grow in the range of 5% to 7%. Furthermore, the Company forecasts net interest margin for FY17 to be in the range 2.80% to 2.90%.

Stock Performance

At the closing bell, on Monday, January 30, 2017, People's United Financial's stock closed the trading session at $18.66, slipping 2.00% from its previous closing price of $19.04. A total volume of 4.03 million shares have exchanged hands, which was higher than the 3-month average volume of 3.98 million shares. People's United Financial's stock price advanced 14.55% in the last three months, 24.37% in the past six months, and 34.10% in the previous twelve months. The Company's shares are trading at a PE ratio of 20.30 and have a dividend yield of 3.64%.

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SOURCE: Active Wall Street