December 1, 2003

PEOPLE'S BANK SURPASSES $3 BILLION IN CLOSED MORTGAGE LOANS

Milestone Highlights Strength of People's Connecticut Franchise, Low Interest Rates
BRIDGEPORT, CONN. - People's Bank hit an important milestone this week when its closed mortgage loans surpassed $3 billion in a single year for the first time in the bank's 161-year history.

People's is the number one mortgage lender in Connecticut, a position it has held for 11 consecutive years, according to The Commercial Record. Mortgage services are available in all of People's 154 branches statewide, including 64 Stop & Shop offices, which are open seven days a week.

"This has been an extraordinary year for the residential mortgage business at People's," said Wayne C. Walker, senior vice president, Residential Lending. "Rates are the lowest they have been in four decades, and People's continues to capitalize on the low-interest rate environment by utilizing its extensive statewide franchise, which has resulted in thousands of home purchase and refinancing opportunities."

While the refinancing boom garnered headlines in 2003, People's mortgage applications for home purchases exceeded $775 million in the first ten months of 2003. The month of September was the busiest closing month ever for People's, with over $400 million closed in that month alone.

Part of People's lending milestone also can be attributed to its outreach to low- and moderate-income borrowers. According to data from the Federal Financial Institutions Council, People's ranked number one in lending to low- and moderate-income borrowers for home purchases in 2002.

People's is a leader in homebuyer education training and affordable lending programs for prospective homeowners. People's program, Unlocking the Possibilities of Homeownership, offers 12 hours of comprehensive instruction on homeownership planning, home financing, credit maintenance and community responsibilities. Upon completion of the course, prospective homeowners can take advantage of a number of affordable financing benefits from People's, the Federal Housing Administration (FHA) and the Connecticut Housing Finance Authority (CHFA).

Also contributing to the $3 billion milestone, for the eighth consecutive year in a row, People's has been honored by the Connecticut Homebuilders Association as having the best loan program for new subdivision developments, which fostered many new construction loans for the bank.

People's (peoples.com) is a diversified financial services company providing consumer, commercial, insurance and investment services. Founded in 1842, it is the largest state-chartered bank in Connecticut with assets of $12 billion;154 branches, including 64 in convenient Super Stop & Shop locations;and more than 230 ATMs. People's is a leader in consumer and commercial banking, residential lending, insurance sales, supermarket banking and is the nation's 19th-largest issuer of MasterCard and Visa credit cards. People's subsidiaries offer brokerage services, asset management, equipment financing and leasing, and insurance services.