Bridgeport, Connecticut-based People’s United Bank saw earnings drop 33 percent as the bank made another large provision for loan losses.

People’s United had second quarter net income of $89.9 million, or $0.21 per common share, compared to $133.2 million, or $0.33 per common share, in the second quarter of 2019. Earnings in the first quarter were $130.4 million.

Net income for the first six months of 2020 was $220.3 million compared to $247.8 million for the same period last year.

The bank cited the effects of the COVID-19 pandemic for its second quarter provision for credit losses of $80.8 million, a $47.3 million increase over the first quarter. The provision for the first six months of 2020 was $114.3 million.

The allowance for credit losses increased by $72.3 million to $414 million, or 0.91 percent on June 30 compared to 0.77 percent on March 31.

Net interest income totaled $405.6 million in the second quarter compared to $396 million in the first quarter and $348.1 million in the second quarter last year. The net interest margin decreased to 3.05 percent in the second quarter compared to 3.12 percent in both the first quarter of 2020 and the second quarter last year.

David Rosato, People’s United’s senior executive vice president and chief financial officer, said in a statement that the margin compression reflected the downward repricing of floating rate loans, though it was partially offset by reductions in deposit and borrowing costs.

Non-interest income declined to $89.6 million compared to $123.8 million in the first quarter and $106.3 million a year ago. Rosato said the decline was due to decreased customer activity, fee waivers related to COVID-19 and lower wealth management fees.

The bank had total assets of $61.5 billion as of June 30, up from $60.4 billion on March 31 and $51.62 billion on June 30, 2019. People’s United acquired United Bank during the fourth quarter of 2019.

Total loans were $45.5 billion at the end of the second quarter compared to $44.28 on March 31, and total deposits were $49.93 billion on June 30 compared to $44.74 billion at the end of the first quarter.

People’s United has funded nearly 18,000 Paycheck Protection Program (PPP) loans totaling over $2.6 billion through July 15.

“Consistent with our history of providing support in periods of need, we are committed to helping customers and communities navigate through this crisis. In addition to being among a small group of banks that were first to submit a significant number of PPP applications, we granted forbearance, where appropriate, for both retail and commercial loans and continue to assess the needs of customers that may require extended relief,” People’s United Chairman and CEO Jack Barnes said in a statement. “We also registered for the Main Street Lending program to further support small and mid-sized businesses. Clearly, the duration of the pandemic is unpredictable and its total impact on the economy is unknown. However, we remain confident that our long-held conservative underwriting philosophy and diversified loan portfolio comprised of high-quality, cycle-tested borrowers will once again differentiate our franchise throughout the uncertain times ahead.”