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 BRIDGEPORT, Conn., Oct. 21 /PRNewswire/ -- People's Bank (NASDAQ: PBCT) today announced net income of $9.0 million or $0.23 per common share for the quarter ending Sept. 30, 1993, compared to $2.4 million or $0.07 per common share for the comparable 1992 period. The bank's board of directors declared a dividend of $0.06 per share on the bank's common stock. Dividends had been suspended following the fourth quarter of 1990. The bank, which has been operating under a stipulation and agreement, received permission to pay the quarterly dividend from the Connecticut State Banking Commissioner and the FDIC.
 "The payment of common stock dividends is an integral part of our strategic plan," said David E. A. Carson, president and chief executive officer. "Since the beginning of 1992, the bank has reported steadily improving net income. Our efforts to restore profitability, improve asset quality and enhance our capital position have been very effective, even as we continue to build on our franchise in Connecticut. In the last quarter, we opened three new bank branches and our businesses are growing.
 "Our managed credit card portfolio grew to $882 million at the end of the third quarter, compared to $562 million a year ago. Similarly, mortgage lending continues to show high activity in this favorable interest rate environment. In the first nine months of 1993 we originated $633 million in residential loans."
 The quarterly common stock dividend is payable on Nov. 15, 1993 to stockholders of record on Nov. 1, 1993. People's Mutual Holdings, which owns 25.3 million shares of People's Bank common stock, waived receipt of the dividend on all of its shares.
 The bank also announced a quarterly preferred stock dividend of $1.06 per share, payable Nov. 15, 1993, to stockholders of record on Nov. 1, 1993. As a result of the $69 million preferred stock offering and earnings generated since last September, stockholders' equity increased from $303 million on Sept. 30, 1992 to $416 million at Sept. 30, 1993, an increase of 37 percent.
 George W. Morriss, executive vice president and chief financial officer, said, "The securitization of $200 million in credit card receivables during the third quarter enhanced our risk-based capital ratio by 30 basis points and demonstrated our ability to access this important sector of the capital marketplace. The securitization has a modest negative effect on net interest margin, which is offset by increased fee-based revenues."
 Commenting on the bank's asset quality, Morriss said, "The downward movement in nonperforming assets (NPAs) continued in the third quarter, declining for the eighth consecutive quarter. At the end of third quarter, NPAs totaled $287 million, a 23 percent reduction compared to $371 million a year ago. As a percentage of total assets, NPAs dropped below 5 percent for the first time since June 30, 1990, representing 4.8 percent of assets at Sept. 30, 1993."
 "In looking at the components of NPAs, the downward trends in non-accrual loans and foreclosed properties continued in the third quarter, while restructured loans have been increasing over the past several quarters. At Sept. 30, 1993, restructured loans totaled $31 million and were performing in accordance with modified terms."
 For the nine months ended Sept. 30, 1993, net income totaled $45.0 million or $1.33 per common share, compared to $3.1 million or $0.09 per common share in the first nine months of 1992. The results for 1993 include a $15 million benefit from the adoption of new accounting rules for income taxes and a $7.3 million net gain on the sale of consumer loans recorded in the first quarter of 1993.
 People's Bank, a 151-year-old diversified financial institution offering consumer and commercial banking services, serves Connecticut through a network of 74 branches, automated teller machines and People's Plus Tele-Banking Service. People's is the leading mortgage originator in Connecticut and is also a nationally recognized credit card issuer.
 -0- 10/21/93
 /CONTACT: Jane S. Sharpe, vice president-corporate communications, 203-338-3162, or Kim A. Hanson, public relations officer, 203-338-2606, both of People's Bank/

CO: People's Bank ST: Connecticut IN: FIN SU: DIV ERN

TM -- NY118 -- 2137 10/21/93 17:43 EDT
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Publication:PR Newswire
Date:Oct 21, 1993

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