Harvard Winters
Long/short equity, growth at reasonable price, value

Q3 Update: People's United Financial's Excess Capital Problem Is Nearly "Solved"

Bridgeport, CT-based thrift People's United Financial, Inc. (NASDAQ:PBCT) announced Q3 2013 earnings on Thursday after the market close. It reported EPS of $0.19 per share for the quarter, versus $0.20 in the prior quarter. The chart below lays out quarterly EPS and DPS for PBCT since Q1 2008 (data is provided by SNL Financial LC):

PBCT appears to be showing EPS benefits from the $489 million Danvers Bancorp acquisition, which closed on June 30, 2011. That dip in EPS in 2009 and 2010 was primarily driven by a declining net interest margin, which has since recovered. PBCT chose not to reduce its dividend during this EPS dip (not surprising, given its excess capital, which I'll address in detail...

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