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, Conn.-based People”™s United Bank is the largest bank in Fairfield County, Conn., 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 already opened a Westchester County branch 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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