On the eve of its planned merger with M&T Bank, Bridgeport-based People’s United Bank posted a slight dip in third-quarter earnings as the company’s average loan balance decreased.
The bank posted net income of $139.7 million, or 32 cents per common share, down from $144.6 million, or 34 cents per common share, in the corresponding period one year prior. Operating earnings declined from $144.7 million in the third quarter of 2020 to $141.1 million between July and September of this year.
People’s United’s total loan portfolio decreased $1.8 billion, or 4% since June. Period-end loans fell by approximately $1.1 billion, primarily due to lower commercial real estate and retail balances and a reduction in the company’s mortgage warehouse portfolio.
Still, bank officials said the fundamentals of their business, including high asset quality well-controlled expenses, remain strong. Their focus, they said, is now on completing their acquisition by M&T and capitalizing on the firms’ expanding scale and digital capabilities.
People’s United and M&T received approval Thursday from regulators in Connecticut and New York to complete their linkup. M&T, which is headquartered in Buffalo, will pay $7.6 billion to take ownership of People’s United and plans to make the company’s Bridgeport offices into a regional headquarters.
The deal drew some heated criticism this summer after M&T disclosed plans to lay off hundreds of workers in Connecticut, including in the Greater Hartford area.
The New York lender later clarified that it would keep at least 1,000 employees at People’s United’s corporate office.
The merger still needs approval from the Federal Reserve. It is expected to close in the fourth quarter.
