Topic: How To Invest

Pat, what’s your opinion on the U.S. stock People’s United Financial? Thanks.

Article Excerpt

People’s United Financial, $15.41, symbol PBCT on Nasdaq (Shares outstanding: 348.2 million; Market cap: $5.4 billion), is a holding company for the former People’s Bank and Chittenden Corp., acquired on January 1, 2008. People’s United provides a full range of financial services to individuals, businesses and municipal governments. These include lending, cash management, banking, brokerage, equipment leasing, asset management, insurance and related services. The bank has over 300 branches throughout the U.S. northeast, including 220 traditional branches, 79 supermarket-based branches and over 400 automated-teller machines. This New England regional bank has a much lower level of non-performing loans (only 0.47%) than most other banks. It’s also well capitalized, at almost 20% of tangible equity. That’s double the capitalization of many other U.S. banks, and as much as triple the national average. The recession will continue to hurt most financial institutions’ lending activities and fee revenues, including those of People’s United. However, with its strong capital base and over $2 billion in cash,…