People’s United Financial Inc. says second-quarter profits climbed 14 percent, boosted by a gain from the Bridgeport regional lender’s contribution of merchant-account assets into its new joint venture with Ohio electronic-funds processor Vantiv Inc.
The parent of People’s United Bank also declared its regular dividend of 0.165 cents a share to be paid Aug. 1 to common stockholders on record by July 16.
For three months ended June 30, the bank holding company netted $72.3 million, or 24 cents a share, up $62.1 million, or 20 cents a share, netted the same period a year ago.
CEO Jack Barnes said the results reflect People’s strong deposit and loan growth.
Also reflected was an after-tax gain of $13.4 million, or 4 cents a share, from its contribution of commercial accounts into the merchant-services venture with Vantiv, based in Cincinnati.
Vantiv has provided People’s with debit-processing and ATM services since 2006, the bank said.
With their venture, known as People’s United Merchant Services, both entities will provide merchant-payment and clearing services to Northeast customers, People’s said.
“By joining forces with Vantiv, People’s United Merchant Services can provide customers with targeted solutions and advanced technology,” said Lee Powlus, People’s chief administrative officer.
People’s had June 30 assets of $33.9 billion vs. $31.3 billion the same date last year.
