People's United Financial (NASDAQ:PBCT), the holding company of People's United Bank, saw its stock briefly surge this morning after it reported first-quarter profits that grew nearly 14% on an annualized basis.

The bank reported more than $130 million in net income in the first quarter on total revenue of $520 million, up 22% from the same period the year before, driven by both recent acquisitions and organic growth.

Banks are increasing their provision for loan losses.

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People's United increased its quarterly credit provision (cash banks set aside for future loan losses) nearly sixfold year over year to account for expected losses resulting from the economic shutdown caused by the coronavirus pandemic.

"The company has always had a long-term view, predicated on a conservative underwriting philosophy, superior service, a diversified business mix and prudent liquidity and capital management, which has served it well through various operating environments," CEO and Chairman Jack Barnes said in a statement. "We are confident this strategy will once again show the strength of the franchise as it plays a critical role in supporting the financial health of individuals, businesses and communities throughout this crisis and beyond."

The company noted that in the quarter it granted forbearance on a total of 7,654 loans: 1,280 commercial loans, 4,244 equipment finance loans, and 2,130 retail loans.

It also noted that it issued over 9,600 loans totaling more than $2.1 billion through the Paycheck Protection Program.

Net charge-offs in the quarter were $10.6 million, up more than $7 million year over year. Total non-performing loans (those 90 days past due) grew more than $50 million year over year, but the ratio of non-performing loans to total loans remained the same at 54 basis points (that is, 0.54 percentage points).