July 17, 2008

People's United Financial Reports Second Quarter Earnings Of $43 Million Or $0.13 Per Share
Quarter Characterized by Solid Asset Quality and Strong Capital Position

BRIDGEPORT, CT. –People's United Financial, Inc. (NASDAQ: PBCT) today announced net income of $43.0 million, or $0.13 per share, for the second quarter of 2008, compared to $13.5 million, or $0.05 per share, for the second quarter of 2007. The prior year quarter's results included the $60 million contribution to The People's United Community Foundation, which had the effect of reducing net income by $39.6 million, or $0.13 per share. Earnings for the second quarter of 2008 reflect continued low levels of net loan charge-offs and a partial benefit from previously announced cost-reduction initiatives. Additionally, as expected, there was continued margin pressure given the interest rate cuts by the Federal Reserve Bank earlier this year and the temporary investment of the company's significant excess capital in low-yielding short-term investments.

People's United Financial completed its acquisition of Chittenden Corporation on January 1, 2008. Accordingly, People's United Financial's second quarter 2007 results do not include the results of Chittenden Corporation.

For the second quarter of 2008, return on average tangible assets was 0.91 percent and return on average tangible stockholders' equity was 4.7 percent, compared to 0.41 percent and 1.4 percent, respectively, for the year-ago quarter.

The Board of Directors of People's United Financial declared a $0.15 per share quarterly dividend, payable August 15, 2008 to shareholders of record on August 1, 2008. Based on the closing stock price on July 16, 2008, the dividend yield on People's United Financial common stock is 3.8 percent.

President and Chief Executive Officer, Philip R. Sherringham stated, "While our results this quarter continue to be negatively impacted by the interest rate cuts initiated by the Federal Reserve Bank, we take great comfort in our fortress balance sheet, and remain focused on our commercial and retail banking strategy. The reduced level of interest income recorded this quarter directly reflects the lower absolute rate earned on federal funds, and is due to our deliberate decision to value the security of our excess capital investment over the potential to increase near-term earnings at the risk of future impairment."

Sherringham added, "Continued margin compression was expected this quarter given the asset sensitive position of our balance sheet. The net interest margin was down 11 basis points from the first quarter primarily as a result of the dramatic actions taken by the Federal Reserve Bank during 2008. We would also note that the rate of margin compression has slowed substantially since the Federal Reserve Bank first initiated its series of interest rate cuts in late 2007."

At June 30, 2008, non-performing assets totaled $86.4 million, a $19.4 million increase from March 31, 2008. Non-performing assets equaled 0.60 percent of total loans, REO and repossessed assets, compared to 0.46 percent at March 31, 2008. The allowance for loan losses as a percentage of total loans was 1.06 percent at June 30, 2008 compared to 1.05 percent at March 31, 2008.

Second quarter net loan charge-offs totaled $2.4 million compared to $2.8 million in the first quarter of 2008. Net loan charge-offs as a percent of average loans on an annualized basis were 0.07 percent in the second quarter of 2008 compared to 0.08 percent in this year's first quarter. The level of the allowance for loan losses is unchanged from March 31, 2008.

Commenting on asset quality, Sherringham stated, "While we expect the level of non-performing assets to fluctuate in response to changing economic and market conditions, we remain comfortable with the current levels and have not seen any pervasive weakness in any sector of the loan portfolio. This quarter saw an increase in non-performing assets, primarily due to three commercial relationships in the northern New England portfolio totaling $13 million."

Sherringham continued, "However, the ratio of non-performing loans to total loans was 0.58 percent at June 30, 2008, net loan charge-offs remain extremely low and the ratio of the allowance for loan losses to total loans increased slightly. We feel that the loan portfolio continues to benefit from our stringent underwriting standards, and we have made sure that those standards are now in effect throughout the former Chittenden franchise."

Sherringham concluded, "We feel the best use of our capital is to have the patience to find and execute a well priced acquisition that will best enhance the long-term profitability of the company. Therefore, we do not feel under pressure to immediately deploy the excess capital in either a poorly priced deal or an aggressive stock buyback. However, we are committed to a strong dividend policy and feel that continues to be an appropriate avenue to enhance shareholder returns. Our balance sheet continues to be funded primarily by deposits and stockholders' equity. Given the many challenges of today's environment, the strength of our capital and liquidity positions, asset quality and earnings set us apart from most in the industry."

Conference Call
On July 18, 2008, at 11 a.m., Eastern Time, People's United Financial will host a conference call to discuss this earnings announcement. The call may be heard through www.peoples.com by selecting "Investor Relations"in the "About People's"section on the home page, and then selecting "Conference Calls"in the "News and Events"section. Additional materials relating to the call may also be accessed at People's United Bank's web site. The call will be archived on the web site and available for approximately 90 days.

Selected Financial Terms
In addition to evaluating People's United Financial's results of operations in accordance with generally accepted accounting principles ("GAAP"), management routinely supplements this evaluation with an analysis of certain non-GAAP financial measures, such as the efficiency ratio. Management believes this non-GAAP financial measure provides information useful to investors in understanding People's United Financial's underlying operating performance and trends, and facilitates comparisons with the performance of other banks and thrifts.

The efficiency ratio, which represents an approximate measure of the cost required by People's United Financial to generate a dollar of revenue, is the ratio of total non-interest expense (excluding goodwill impairment charges, amortization of acquisition-related intangibles and fair value adjustments, losses on real estate assets and nonrecurring expenses) to net interest income on a fully taxable equivalent basis (excluding fair value adjustments) plus total non-interest income (including the fully taxable equivalent adjustment on bank-owned life insurance income, and excluding gains and losses on sales of assets, other than residential mortgage loans, and nonrecurring income). People's United Financial generally considers an item of income or expense to be nonrecurring if it is not similar to an item of income or expense of a type incurred within the last two years and is not similar to an item of income or expense of a type reasonably expected to be incurred within the following two years. Management considers the efficiency ratio to be more representative of People's United Financial's ongoing operating efficiency, as

2Q 2008 Financial Highlights

Summary

• Net income totaled $43.0 million, or $0.13 per share.
• Net interest income on a fully taxable equivalent basis totaled $157.9 million.
• Net interest margin declined 11 basis points from 1Q08 to 3.56%.
• Provision for loan losses totaled $2.4 million.
• Net loan charge-offs totaled $2.4 million in 2Q08 compared to $2.8 million in 1Q08.
• The allowance for loan losses of $151.7 million remained unchanged from March 31, 2008.
• Non-interest income totaled $73.4 million.
• Non-interest expense totaled $162.9 million.
• Effective income tax rate was 34.0%.

Commercial Banking

• Average commercial banking loans increased $148 million from 1Q08 to $8.8 billion.
• Commercial banking non-performing assets totaled $64.2 million.
• The ratio of commercial banking non-performing loans to total commercial banking loans was 0.70% at June 30, 2008.
• Net loan charge-offs totaled $1.4 million, or 0.06% annualized, of average commercial banking loans.

Retail &Small Business Banking

• Average residential mortgage loans totaled $3.6 billion.
• Average home equity loans totaled $1.7 billion.
• Average indirect installment loans averaged $0.2 billion.
• Home equity net loan charge-offs totaled $0.2 million, or 0.05% annualized, of average home equity loans.
• Indirect installment net loan charge-offs totaled $0.3 million, or 0.57% annualized, of average indirect installment loans.

Treasury

• Average short-term investments totaled $2.4 billion.
• Average securities totaled $0.9 billion.
• Average short-term investments and securities represented 19% of average earning assets.