People's United Financial Inc. PBCT reported first-quarter 2016 earnings of 21 cents per share, in line with the Zacks Consensus Estimate. However, the reported figure beat the prior-year quarter by a penny.Higher revenues driven by increased net interest income supported earnings. Further, growth in loans and deposits balances was other positives. However, fall in non-interest income and higher provisions acted as dampeners.Net income came in at $62.9 million, up 6.3% year over year.Performance in DetailNet revenue on a fully taxable equivalent basis grew 2.1% year over year to $329.7 million in the first quarter of 2016 but lagged the Zacks Consensus Estimate of $332 million.Net interest income totaled $247.4 million, up 5.8% year over year. This can be attributed to an increase in total interest and dividend income, partially offset by a rise in total interest expense. Net interest margin fell 8 basis points (bps) year over year to 2.83%.Non-interest income declined 7.5% year over year to $82.3 million. Fall in several income categories during the reported quarter, including bank service charges and customer interest rate swap income led to the decline.Non-interest expenses remained almost stable at $217.3 million. Rise in professional and outside services costs along with other non-interest expenses was offset by a decrease in compensation and regulatory assessments.As of Mar 31, 2016, total net loans grew 6% year over year to $28.3 billion. Moreover, total deposits increased 7.4% on a year-over-year basis to $29.1 billion.Credit MetricsOverall, credit quality metrics at People’s United were mixed. As of Mar 31, 2016, non-performing assets came in at $189.4 million, down 9.3% year over year. Ratio of non-performing loans to total originated loans declined 7 bps year over year to 0.61% during the quarter. However, provision for loan losses was $10.5 million, up 7.1% year over year.Even total allowance for loan losses jumped 7.3% year over year to $215.5 million.Capital & Profitability RatiosCapital ratios of People’s United deteriorated during the quarter. As of Mar 31, 2016, total risk-based capital ratio edged down to 11.6% from 11.9% in the year-ago quarter. Further, tangible equity ratio contracted to 7.3% from 7.5% in the prior-year quarter.However, the company’s profitability ratios were mixed. Return on average tangible stockholders’ equity came in at 9.4%, up from the prior-year quarter tally of 9.2%. Return on average assets declined to 0.65% from 0.66% in the year-ago quarter.Our ViewpointPeople’s United reported a decent quarter reflecting organic growth. Moreover, remarkable improvement on the loan origination front proved beneficial for the company. However, margin pressure and declining non-interest income are likely to limit bottom-line expansion in the upcoming quarters. At the same time, recent regulatory issues are anticipated to pose headwinds.People’s United currently carries a Zacks Rank #3 (Hold).Among the other financial savings and loan institutions, Banner Corporation BANR is expected to release March quarter-end results on Apr 25, Westfield Financial Inc. WFD on May 4 and Meta Financial Group, Inc. CASH on May 5.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PEOPLES UTD FIN (PBCT): Free Stock Analysis Report META FINL GRP (CASH): Free Stock Analysis Report WESTFIELD FINL (WFD): Free Stock Analysis Report BANNER CORP (BANR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research