People's United Financial in Bridgeport, Conn., reported a second-quarter profit of $61.7 million that was aided by growth in lending and certain fee revenue.
That was 15% lower than a year earlier, and earnings per share for the$37.2 billion-asset banking company were 20 cents, missing the average estimate of analysts polled by Bloomberg by about a penny.
However, the company said its EPS and year-over-year comparison were affected by one-time items such as a large gain last year from the formation of a merchant services joint venture with payments processor Vantiv.
People's operating earnings which excluded the effect of the Vantiv-related gain and other one-time factors rose 6.3% to $63.7 million and were in line with analysts' expectations.
Net total loans rose 8.3%, to $27.6 billion. However, net interest income was $230.4 million, about 1% higher than a year earlier as net interest margin fell 25 basis points to 2.88%.
Noninterest income, after factoring out last year's one-time gains from Vantiv, increased about 4%, to $83 million. This increase largely came from gains in investment management fees and operating lease income.
Noninterest expense also grew 1.7%, to $211.8 million.