People”™s United Financial Inc. increased its commercial loan portfolio by $300 million in the third quarter from a year ago, or 8 percent, partially offsetting an 11 percent decline in its residential mortgage portfolio.
Bridgeport-based People”™s United Bank is the largest bank in Fairfield County with 21 percent of deposits, and trails only Bank of America Corp. and Webster Bank N.A. in Connecticut deposits.
People”™s is currently expanding into New York, having opened a Westchester County branch this month in Mount Kisco. The bank intends to have 15 branches in Westchester by the end of next year, employing 100 people.
With net interest income up $38 million, or 40 percent, thanks to investments made following a stock offering last spring, People”™s had a $58 million profit in the quarter.
People”™s is in the process of acquiring Vermont-based Chittenden Corp. Chittenden had a $24 million profit, with net interest income totaling $67 million. Chittenden likewise has increased its commercial loan portfolio by 6 percent from a year previous.
Mindful of a rise in foreclosures for subprime loans with escalating interest rates, People”™s United Bank decided nearly a year ago to sell off its portfolio of newly originated residential mortgage loans.
“Our loan portfolio has absolutely no subprime or ”˜Alt-A”™ exposure,” said Philip Sherringham, executive vice president and chief financial officer, in a prepared statement. “Our asset quality remains very strong.”
As of Sept. 30, the bank”™s nonperforming loans totaled $26.2 million, up $3.3 million from a year ago, and accounting for 0.29 percent of all loans.
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