People's United Financial Inc. PBCT reported third-quarter 2021 operating earnings of 33 cents per share, which missed the Zacks Consensus Estimate of 35 cents. The bottom line is below the year-ago quarter’s figure of 34 cents.The quarterly results reflect on controlled expenses and increasing deposit balance. Lower provision for credit losses and a strong capital position also supported the financials. However, a decline in net interest income (NII) and reduced loans were headwinds.Net income available to common shareholders was $136.2 million compared with $141.1 million reported in the prior-year quarter.Revenues Fall on Lower NII, Deposits UpTotal revenues (comprising net interest income and non-interest income) were down 4.43% year over year to $470.7 million in the third quarter. The top line missed the Zacks Consensus Estimate of $482.4 million.NII, on a fully-taxable basis, totaled $377.9 million, down 5.2% year over year. The net interest margin (annualized) declined to 2.64% from the prior-year quarter’s level to 2.97%.Non-interest income declined marginally year over year to $100.4 million. A rise in bank service charges, investment management fees, net customer interest rate swap income and cash management fees were offset by a decline in operating lease income, commercial banking lending fees and other non-interest income.Non-interest expenses dropped 1.5% on a year-over-year basis to $289.2 million. A decline in amortization of other acquisition-related intangible assets, operating lease expenses and other non-interest expenses led to the fall.The company’s efficiency ratio was 56.8% compared with the prior-year quarter’s 53.8%. An increase in the ratio indicates lower profitability.As of Sep 30, 2021, total loans were $39.5 billion, down 4.5% from the prior quarter. Also, total deposits rose marginally on a sequential basis to $52.9 billion.Credit Quality: A Mixed BagAs of Sep 30, 2021, non-performing assets were $329.5 million, up 2.5% year over year. The ratio of non-performing loans to total loans expanded 13 bps from the year-earlier quarter’s levels to 0.81%.Net loan charge-offs declined 55.5% year over year to $7.7 million. Net loan charge-offs, as a percentage of average total loans, were 0.08% on an annualized basis, contracting 7 bps.Provision for credit losses on losses was $12 million compared with $27.1 million in the year-ago quarter.Capital Position Strong, Profitability Ratios DeclineAs of Sep 30, 2021, total risk-based capital ratio increased to 13.6% from 12.3% recorded in the year-earlier period. Tangible equity ratio of 7.8% was up from 7.5% in the year-ago period.Return on average tangible stockholders’ equity was 11.6%, down from the prior-year quarter’s 13.1%. As of Sep 30, 2021, return on average assets was 0.87%, down from the year-ago quarter’s 0.94%.Dividend UpdateThe board of directors announced a quarterly common stock dividend of 18.25 cents per share. The dividend will be paid out on Nov 15 to common shareholders of record as of Nov 1, 2021.Our ViewpointThough a fall in revenues and a decline in loan balance might restrict bottom-line expansion in the upcoming quarters, People’s United’s efforts to strengthen its deposit franchise through acquisitions is encouraging. This is likely to continue in the near future as well, supported by the company’s strong balance sheet position and controlled expenses.People's United Financial, Inc. Price, Consensus and EPS Surprise People's United Financial, Inc. price-consensus-eps-surprise-chart | People's United Financial, Inc. Quote Currently, People’s United carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksSynovus Financial SNV reported third-quarter 2021 adjusted earnings of $1.20 per share, which beat the Zacks Consensus Estimate of $1.07 per share, aided by solid revenues. Also, the bottom line compared favorably with earnings of 89 cents per share recorded in the year-ago quarter.Northern Trust Corporation NTRS reported third-quarter 2021 earnings per share of $1.80, which surpassed the Zacks Consensus Estimate of $1.67 on the release of credit reserves. The bottom line increased year over year from $1.32.KeyCorp’s KEY third-quarter 2021 earnings of 65 cents per share handily surpassed the Zacks Consensus Estimate of 57 cents. The bottom line surged 58.5% from the prior-year quarter’s levels. 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(SNV): Free Stock Analysis Report Northern Trust Corporation (NTRS): Free Stock Analysis Report KeyCorp (KEY): Free Stock Analysis Report People's United Financial, Inc. (PBCT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research