People's United Financial Inc.’s (PBCT) third quarter earnings of 8 cents per share were in line with the Zacks Consensus Estimate. While quarterly results benefited from growth in core loan portfolios and deposits, the company’s credit quality continued to deteriorate. It has reported significant increase in loan loss provisions in the quarter. People's United reported net income of $26.8 million or 8 cents per share for the quarter, compared to $25.3 million or 8 cents per share in the prior quarter and $46.0 million or 14 cents per share a year earlier. Net interest income was $145.3 million, up 3% sequentially but down 9% year-over-year. Net interest margin was up 7 basis points (bps) sequentially but down 52 bps year-over-year to 3.19%. The sequential increase in the net interest margin was primarily driven by a reduction in the costs of deposits. Non-interest income decreased ...

As we stated yesterday, we anticipate that a number of the "Big Banks," such as (but not limited to) Citigroup (C), Wells Fargo (WFC), Bank of America (BAC), JP Morgan (JPM) and US Bancorp (USB) may need to divest a number of non-core or overlap operations in order to preserve capital.To that end, Bank of America announced its intent to sell its First Republic Bank operation, which it acquired through the acquisition of Merrill Lynch. Merrill had acquired First Republic in 2007.First Republic is a private banking and wealth management company (offering personal banking, business banking, trust, brokerage and wealth management services) which specializes in personalized relationship-based services through its preferred banking or trust offices in 10 major metropolitan areas (San Francisco, Los Angeles, Santa Barbara, Newport Beach, San Diego, Las Vegas, Portland, Seattle, Boston, and New York City). We ...

The U.S. financial-services sector is undergoing the broadest restructuring of a single industry in the history of Corporate America, and Bank of America Corp. (NYSE: BAC) has positioned itself to emerge as one of three clear frontrunners. Indeed, along with Citigroup Inc. (NYSE: C) and JPMorgan Chase & Co. (NYSE: JPM), Bank of America could well emerge from this financial maelstrom as one of the premier players on the global stage: All three will benefit from increasing market share and increased financial intermediation margins as their weaker rivals have failed and/or been taken over in part or in total by a stronger industry player. During the many financial crises that I have analyzed around the world, the result has always been the same: The prudently managed, under-levered institutions that did not overstretch their capital bases and that were ...

One of the basic tenants of a free market economy is that it will find balance. It may find balance in a nice sooth way or it may find balance with a chain saw, a hammer and a guillotine. One way or another balance will be found. Profiting and preserving capital when the market decides to take few prisoners is a game of wits, played by those ready to win big or lose large. It is a game where nobody knows what the outcome will be. Play the game well and an investor will profit. Play the game wrong and an investor can go home with little or nothing.

Washington Mutual Inc., a Seattle based consumer and small business banking “thrift”, offers financial services to: retail customers, credit card customers, commercial customers and mortgage seekers. At the end of 2007, the company reported operating 2,257 retail banking outlets and 233

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