BRIDGEPORT, Conn., April 20, 2017 /PRNewswire/ -- People's
United Financial, Inc. (NASDAQ: PBCT) today reported net income of
$70.8 million, or $0.22 per common share, for the first quarter of
2017, compared to $62.9 million, or
$0.21 per common share, for the first
quarter of 2016, and $75.9 million,
or $0.24 per common share, for the
fourth quarter of 2016. Included in this quarter's results
were merger-related and acquisition integration costs of
$1.2 million ($0.8 million after-tax), or less than
$0.01 per common share, compared to
$1.6 million ($1.0 million after-tax), or less than
$0.01 per common share, for the
fourth quarter of 2016.
As previously reported, People's United Financial completed its
acquisition of Suffolk Bancorp on April 1,
2017. Accordingly, first quarter results for People's United
Financial do not include the results of Suffolk.
The Company's Board of Directors voted to increase the common
stock dividend to an annual rate of $0.69 per share. Based on the closing stock
price on April 19, 2017, the dividend
yield on People's United Financial common stock is 3.9 percent. The
quarterly dividend of $0.1725 per
share is payable May 15, 2017 to
shareholders of record on May 1,
2017.
"We are pleased to report first quarter net income of
$70.8 million, which increased 13
percent from a year ago," commented Jack
Barnes, President and Chief Executive Officer. "The quarter
benefited from a four basis point improvement in the net interest
margin from the fourth quarter. Loan balances declined one percent
on an annualized basis primarily resulting from paydowns in
mortgage warehouse lending due to the rate driven nature of this
business. Excluding mortgage warehouse lending, the loan portfolio
experienced annualized growth of three percent driven by favorable
results in residential mortgage as well as middle market commercial
and industrial lending, highlighting the importance of our
diversified business mix. We remain successful gathering deposits
across the franchise as evidenced by nine percent annualized growth
since year-end."
Barnes continued, "With the acquisition of Suffolk Bancorp
completed, we are excited to further strengthen and expand People's
United in the New York metro area
as one united team. Experienced teams from both companies have
worked closely together throughout the integration process to
ensure a seamless transition for clients. As planned, the core
system conversion will take place in early May. We are very
confident this combination of similar customer-focused cultures
will create significant value for both clients and
shareholders."
Barnes concluded, "Finally, we are proud to announce our
24th consecutive annual common dividend increase. Our
prudent management of capital has enabled us to deliver shareholder
value through the consistent return of capital, while still growing
organically and investing strategically in the franchise."
"As we continually strive to enhance operating leverage, we are
pleased to report increased revenues on both a linked-quarter and
year-over-year basis," stated David
Rosato, Senior Executive Vice President and Chief Financial
Officer. "Revenue growth, due to both higher net interest income
and non-interest income, drove an efficiency ratio of 59.4 percent,
which is comparable to the fourth quarter and an improvement from a
year ago, despite modestly higher expenses. We remain comfortable
with our ability to proactively control costs and continue to
expect further improvements in the efficiency ratio going
forward."
Rosato concluded, "Capital levels at both the holding company
and bank continue to be strong, especially given our diversified
business mix and history of exceptional credit risk management. Net
charge-offs as percentage of average loans were only three basis
points in the quarter, reflecting our view that maintaining
excellent asset quality is an important lever in building
sustainable long-term value. Furthermore, our balance sheet remains
asset sensitive, which positions us well in a rising interest rate
environment."
At March 31, 2017, People's United
Financial's common equity tier 1 capital and total risk-based
capital ratios were 10.0 percent and 12.6 percent, respectively,
and the tangible common equity ratio stood at 7.4 percent.
For People's United Bank, N.A., common equity tier 1 capital
and total risk-based capital ratios were 11.3 percent and 13.4
percent, respectively, at March 31,
2017.
Net loan charge-offs as a percentage of average total loans on
an annualized basis were 0.03 percent in the first quarter of 2017,
a decrease from 0.06 percent in the fourth quarter of 2016 and 0.09
percent in the first quarter of 2016. For the originated loan
portfolio, non-performing loans equaled 0.55 percent of loans at
March 31, 2017, an increase from 0.51
percent at December 31, 2016, but an
improvement from 0.61 percent at March 31,
2016.
Return on average assets of 0.70 percent for the first quarter
of 2017 was a decrease from 0.75 percent in the fourth quarter of
2016, but an improvement from 0.65 percent in the first quarter of
2016. Return on average tangible common equity of 9.6 percent
in the first quarter of 2017 was a decrease from 10.7 percent in
the fourth quarter of 2016, but an improvement from 9.4 percent in
the first quarter of 2016.
People's United Financial, Inc., a diversified financial
services company with $40 billion in
total assets, provides commercial and retail banking, as well as
wealth management services through a network of approximately 400
branches in Connecticut,
New York, Massachusetts, Vermont, New
Hampshire and Maine. Through its subsidiaries,
People's United Financial provides equipment financing, brokerage
and insurance services.
1Q 2017 Financial Highlights
Summary
- Net income totaled $70.8 million,
or $0.22 per common share.
-
- Net income available to common shareholders totaled
$67.3 million.
- Operating earnings totaled $68.1
million, or $0.22 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $248.6
million in 1Q17 compared to $246.8
million in 4Q16.
- Net interest margin increased four basis points from 4Q16 to
2.82% reflecting:
-
- New loan volume at rates higher than the existing portfolio
(increase of nine basis points).
- Higher yield on the securities portfolio (increase of three
basis points).
- Higher rates on deposits and borrowings (decrease of four basis
points).
- Two fewer calendar days in 1Q17 (decrease of four basis
points).
- Provision for loan losses totaled $4.4
million.
-
- Net loan charge-offs totaled $2.4
million.
- Net loan charge-off ratio of 0.03% in 1Q17.
- Non-interest income was $84.7
million in 1Q17 compared to $84.2
million in 4Q16.
-
- Insurance revenue increased $2.3
million, reflecting the seasonal nature of commercial
insurance renewals.
- Investment management fees increased $1.8 million, primarily reflecting the benefit
from the addition of Gerstein
Fisher.
- Commercial banking lending fees increased $1.0 million.
- Net gains on sales of residential mortgages decreased
$1.7 million.
- Net security losses totaled $15.7
million in 1Q17.
- Recorded a $16.1 million gain in
1Q17 (included in other non-interest income) from the exchange of
an ownership interest in a legacy privately-held investment.
- At March 31, 2017, assets under
administration, which are not reported as assets of People's United
Financial, totaled $22.0 billion, of
which $8.3 billion are under
discretionary management, compared to $21.3
billion and $8.0 billion,
respectively, at December 31,
2016.
- Non-interest expense totaled $226.1
million in 1Q17 compared to $217.2
million in 4Q16.
-
- Operating non-interest expense totaled $224.9 million in 1Q17 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $0.7 million of acquisition integration costs in
4Q16, increased $12.3 million,
primarily reflecting seasonally-higher payroll and benefit-related
costs in 1Q17, as well as merit increases, additional employees and
higher incentive and health care costs.
- Regulatory assessments expense decreased $0.8 million.
- Professional and outside services expense, excluding
$0.7 million and $0.9 million of merger-related expenses in 1Q17
and 4Q16, respectively, decreased $0.6
million.
- The efficiency ratio was 59.4% in 1Q17 compared to 59.3% in
4Q16 (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- The effective income tax rate was 31.1% for 1Q17 and 31.4% for
the full-year of 2016.
Commercial Banking
- Commercial loans totaled $21.1
billion at March 31, 2017, a
$292 million decrease from
December 31, 2016.
-
- The mortgage warehouse portfolio decreased $263 million from December
31, 2016.
- Average commercial loans totaled $20.9
billion in 1Q17, a $200
million decrease from 4Q16.
-
- The average mortgage warehouse portfolio decreased $345 million from 4Q16.
- Commercial deposits totaled $10.5
billion at March 31, 2017
compared to $10.4 billion at
December 31, 2016.
- The ratio of originated non-performing commercial loans to
originated commercial loans was 0.57% at March 31, 2017 compared to 0.49% at December 31, 2016.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $130.4
million at March 31, 2017
compared to $114.4 million at
December 31, 2016.
- For the originated commercial portfolio, the allowance for loan
losses as a percentage of loans was 0.94% at March 31, 2017 compared to 0.95% at December 31, 2016.
- The commercial originated allowance for loan losses represented
165% of originated non-performing commercial loans at March 31, 2017 compared to 193% at December 31, 2016.
Retail Banking
- Residential mortgage loans totaled $6.5
billion at March 31, 2017, an
increase of $271 million, or 17%
annualized, from December 31,
2016.
-
- Average residential mortgage loans totaled $6.4 billion in 1Q17, an increase of $239 million, or 16% annualized, from 4Q16.
- Home equity loans totaled $2.0
billion at March 31, 2017, a
$35 million decrease from
December 31, 2016.
-
- Average home equity loans totaled $2.1
billion in 1Q17, a $31 million
decrease from 4Q16.
- Retail deposits totaled $20.0
billion at March 31, 2017
compared to $19.5 billion at
December 31, 2016.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 0.41% at
March 31, 2017 compared to 0.45% at
December 31, 2016.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.76% at March 31, 2017 compared to 0.85% at December 31, 2016.
Conference Call
On April 20,
2017, at 8 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 Us"
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.
Certain statements contained in this release are forward-looking
in nature. These include all statements about People's United
Financial's plans, objectives, expectations and other statements
that are not historical facts, and usually use words such as
"expect," "anticipate," "believe," "should" and similar
expressions. Such statements represent management's current
beliefs, based upon information available at the time the
statements are made, with regard to the matters addressed. All
forward-looking statements are subject to risks and uncertainties
that could cause People's United Financial's actual results or
financial condition to differ materially from those expressed in or
implied by such statements. Factors of particular importance to
People's United Financial include, but are not limited to: (1)
changes in general, international, national or regional economic
conditions; (2) changes in interest rates; (3) changes in loan
default and charge-off rates; (4) changes in deposit levels; (5)
changes in levels of income and expense in non-interest income and
expense related activities; (6) changes in accounting and
regulatory guidance applicable to banks; (7) price levels and
conditions in the public securities markets generally; (8)
competition and its effect on pricing, spending, third-party
relationships and revenues; (9) the successful integration of
acquisitions; and (10) changes in regulation resulting from or
relating to financial reform legislation. People's United Financial
does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Access Information About People's United
Financial at www.peoples.com.
People's United
Financial, Inc.
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FINANCIAL
HIGHLIGHTS
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Three Months
Ended
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March 31,
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Dec. 31,
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Sept. 30,
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June 30,
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March 31,
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(dollars in millions,
except per common share data)
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2017
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2016
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2016
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2016
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2016
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Earnings
Data:
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Net interest
income (fully taxable equivalent)
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$
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258.1
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$
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255.2
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$
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254.2
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$
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247.7
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$
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247.4
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Net interest
income
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248.6
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246.8
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245.3
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240.0
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240.1
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Provision for
loan losses
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4.4
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7.7
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8.4
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10.0
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10.5
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Non-interest
income
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84.7
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84.2
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90.8
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85.4
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82.3
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Non-interest
expense (1)
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226.1
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217.2
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221.4
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212.9
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217.3
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Income before
income tax expense
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102.8
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106.1
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106.3
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102.5
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94.6
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Net
income
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70.8
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75.9
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73.7
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68.5
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62.9
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Net income
available to common shareholders (1)
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67.3
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74.1
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73.7
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68.5
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62.9
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Selected
Statistical Data:
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Net interest
margin (2)
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2.82
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%
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2.78
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%
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2.80
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%
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2.79
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%
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2.83
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%
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Return on
average assets (1), (2)
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0.70
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0.75
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0.73
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0.70
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0.65
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Return on
average common equity (2)
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5.5
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6.1
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6.1
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5.7
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5.3
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Return on
average tangible common equity (1), (2)
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9.6
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10.7
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10.7
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10.1
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9.4
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Efficiency
ratio (1)
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59.4
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59.3
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59.9
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60.4
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62.7
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Common Share
Data:
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Basic and
diluted earnings per common share (1)
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$
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0.22
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$
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0.24
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$
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0.24
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$
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0.23
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$
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0.21
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Dividends paid
per common share
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0.17
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0.17
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0.17
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0.17
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0.1675
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Common
dividend payout ratio (1)
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78.3
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%
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69.8
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%
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70.1
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%
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75.4
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%
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80.6
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%
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Book value per
common share (end of period)
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$
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15.94
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$
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15.85
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$
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15.99
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$
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15.91
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$
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15.80
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Tangible book
value per common share (end of period) (1)
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9.07
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8.92
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9.18
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9.07
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8.94
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Stock
price:
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High
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19.85
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20.13
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16.40
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16.68
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16.27
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Low
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17.47
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15.28
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14.22
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13.80
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13.62
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Close (end of period)
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18.20
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19.36
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15.82
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14.66
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15.93
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Common shares
(end of period) (in millions)
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310.51
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308.97
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304.02
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303.55
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303.27
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Weighted
average diluted common shares (in millions)
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311.08
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306.23
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303.24
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302.48
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301.86
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(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
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(2)
Annualized.
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People's United
Financial, Inc.
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FINANCIAL
HIGHLIGHTS - Continued
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As of and for the
Three Months Ended
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March 31,
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Dec. 31,
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Sept. 30,
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June 30,
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March 31,
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(dollars in
millions)
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2017
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2016
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2016
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2016
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2016
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Financial
Condition Data:
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Total assets
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$
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40,302
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$
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40,610
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$
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40,692
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$
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40,150
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$
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39,264
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Loans
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29,687
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29,745
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29,368
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29,038
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28,511
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Securities
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6,424
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6,738
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7,046
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6,785
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6,732
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Short-term investments
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392
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182
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373
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364
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251
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Allowance for loan losses
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231
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229
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226
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220
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216
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Goodwill and other acquisition-related intangible assets
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2,136
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2,142
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2,070
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2,076
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2,079
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Deposits
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30,506
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29,861
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29,656
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28,999
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29,105
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Borrowings
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3,211
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4,057
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4,437
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4,563
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3,717
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Notes and debentures
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904
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1,030
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1,054
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1,058
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1,050
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Stockholders' equity
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5,195
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5,142
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4,862
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4,830
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4,791
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Total risk-weighted assets (1):
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People's United
Financial, Inc.
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30,263
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30,540
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30,451
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30,267
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29,832
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People's United
Bank, N.A.
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30,217
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30,489
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30,415
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30,232
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29,826
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Non-performing assets (2)
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183
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167
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180
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182
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189
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Net loan charge-offs
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2.4
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4.7
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2.5
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5.1
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6.0
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Average
Balances:
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Loans
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$
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29,355
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$
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29,346
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$
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29,107
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$
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28,558
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$
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28,159
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Securities (3)
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6,831
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7,074
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6,873
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6,699
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6,498
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Short-term investments
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371
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308
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361
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298
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348
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Total earning assets
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36,557
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36,728
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36,341
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35,555
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35,005
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Total assets
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40,317
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40,623
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40,304
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39,422
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38,773
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Deposits
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29,923
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29,773
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29,437
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29,079
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28,721
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Borrowings
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3,709
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4,148
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4,296
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3,895
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3,664
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Notes and debentures
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966
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1,045
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1,056
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1,049
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1,044
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Total funding liabilities
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34,598
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34,966
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34,789
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34,023
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33,429
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Stockholders' equity
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5,166
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5,039
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4,841
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4,795
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4,761
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Ratios:
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Net loan charge-offs to average total loans (annualized)
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0.03
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%
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0.06
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%
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0.04
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%
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0.07
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%
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0.09
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Non-performing assets to originated loans,
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|
|
|
|
|
|
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real estate owned and
repossessed assets (2)
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0.63
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0.57
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|
0.63
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|
0.64
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0.68
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Originated allowance for loan losses to:
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|
|
|
|
|
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Originated loans
(2)
|
|
0.77
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|
0.77
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|
0.76
|
|
0.75
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|
0.75
|
Originated
non-performing loans (2)
|
|
140.9
|
|
150.6
|
|
142.0
|
|
135.3
|
|
123.3
|
Average stockholders' equity to average total assets
|
|
12.8
|
|
12.4
|
|
12.0
|
|
12.2
|
|
12.3
|
Stockholders' equity to total assets
|
|
12.9
|
|
12.7
|
|
11.9
|
|
12.0
|
|
12.2
|
Tangible common equity to tangible assets (4)
|
|
7.4
|
|
7.2
|
|
7.2
|
|
7.2
|
|
7.3
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.6
|
|
12.5
|
|
11.5
|
|
11.5
|
|
11.5
|
People's United
Bank, N.A.
|
|
13.4
|
|
13.3
|
|
12.8
|
|
12.8
|
|
12.9
|
|
|
|
|
|
|
|
|
|
|
|
(1) March 31, 2017
amounts and ratios are preliminary.
|
|
|
|
|
|
|
|
|
|
|
(2) Excludes acquired
loans.
|
|
|
|
|
|
|
|
|
|
|
(3) Average balances
for securities are based on amortized cost.
|
|
|
|
|
|
|
|
|
(4) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF CONDITION
|
|
|
|
|
|
|
|
|
March 31,
|
Dec. 31,
|
March 31,
|
(in
millions)
|
2017
|
2016
|
2016
|
Assets
|
|
|
|
Cash and due from
banks
|
$
380.8
|
$
432.4
|
$
302.7
|
Short-term
investments
|
392.2
|
181.7
|
251.0
|
Total cash and cash equivalents
|
773.0
|
614.1
|
553.7
|
Securities:
|
|
|
|
Trading
account securities, at fair value
|
7.8
|
6.8
|
6.8
|
Securities
available for sale, at fair value
|
3,772.1
|
4,409.9
|
4,746.1
|
Securities
held to maturity, at amortized cost
|
2,324.0
|
2,005.4
|
1,678.8
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
319.6
|
315.8
|
299.9
|
Total securities
|
6,423.5
|
6,737.9
|
6,731.6
|
Loans held for
sale
|
17.1
|
39.3
|
31.5
|
Loans:
|
|
|
|
Commercial
real estate
|
10,225.3
|
10,247.3
|
10,046.4
|
Commercial and
industrial
|
7,918.3
|
8,125.1
|
7,707.1
|
Equipment
financing
|
2,969.5
|
3,032.5
|
2,977.8
|
Total Commercial Portfolio
|
21,113.1
|
21,404.9
|
20,731.3
|
Residential
mortgage
|
6,487.7
|
6,216.7
|
5,600.8
|
Home equity
and other consumer
|
2,086.5
|
2,123.3
|
2,178.6
|
Total Retail Portfolio
|
8,574.2
|
8,340.0
|
7,779.4
|
Total loans
|
29,687.3
|
29,744.9
|
28,510.7
|
Less allowance
for loan losses
|
(231.3)
|
(229.3)
|
(215.5)
|
Total loans, net
|
29,456.0
|
29,515.6
|
28,295.2
|
Goodwill and other
acquisition-related intangible assets
|
2,135.8
|
2,142.1
|
2,079.0
|
Bank-owned life
insurance
|
348.8
|
349.1
|
346.7
|
Premises and
equipment
|
239.4
|
244.5
|
252.1
|
Other
assets
|
908.4
|
967.2
|
974.0
|
Total assets
|
$ 40,302.0
|
$ 40,609.8
|
$ 39,263.8
|
|
|
|
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
6,669.5
|
$
6,660.8
|
$
6,091.4
|
Savings
|
4,451.7
|
4,397.7
|
4,481.8
|
Interest-bearing checking and money market
|
14,813.9
|
14,260.1
|
13,653.1
|
Time
|
4,570.6
|
4,542.2
|
4,879.2
|
Total deposits
|
30,505.7
|
29,860.8
|
29,105.5
|
Borrowings:
|
|
|
|
Federal Home
Loan Bank advances
|
2,160.4
|
3,061.1
|
3,063.1
|
Federal funds
purchased
|
613.0
|
617.0
|
303.0
|
Customer
repurchase agreements
|
327.7
|
343.3
|
351.2
|
Other
borrowings
|
110.2
|
35.4
|
-
|
Total borrowings
|
3,211.3
|
4,056.8
|
3,717.3
|
Notes and
debentures
|
903.9
|
1,030.1
|
1,050.4
|
Other
liabilities
|
486.1
|
520.2
|
599.4
|
Total liabilities
|
35,107.0
|
35,467.9
|
34,472.6
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
-
|
Common
stock
|
4.1
|
4.0
|
3.9
|
Additional paid-in
capital
|
5,472.7
|
5,446.1
|
5,344.3
|
Retained
earnings
|
960.9
|
949.3
|
889.6
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(142.8)
|
(144.6)
|
(150.0)
|
Accumulated other
comprehensive loss
|
(181.9)
|
(195.0)
|
(134.7)
|
Treasury stock, at
cost
|
(1,162.1)
|
(1,162.0)
|
(1,161.9)
|
Total stockholders' equity
|
5,195.0
|
5,141.9
|
4,791.2
|
Total liabilities and stockholders' equity
|
$ 40,302.0
|
$ 40,609.8
|
$ 39,263.8
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in millions, except
per common share data)
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
88.6
|
|
$
86.8
|
|
$
85.7
|
|
$
85.3
|
|
$
86.8
|
Commercial and
industrial
|
64.6
|
|
65.0
|
|
66.9
|
|
62.8
|
|
60.3
|
Equipment
financing
|
31.6
|
|
31.8
|
|
32.8
|
|
33.0
|
|
33.3
|
Residential
mortgage
|
49.3
|
|
47.0
|
|
45.7
|
|
43.8
|
|
43.9
|
Home equity
and other consumer
|
18.4
|
|
18.1
|
|
18.4
|
|
18.4
|
|
18.6
|
Total interest on loans
|
252.5
|
|
248.7
|
|
249.5
|
|
243.3
|
|
242.9
|
Securities
|
37.0
|
|
36.9
|
|
34.2
|
|
34.7
|
|
34.5
|
Loans held for
sale
|
0.3
|
|
0.3
|
|
0.4
|
|
0.2
|
|
0.2
|
Short-term
investments
|
0.7
|
|
0.4
|
|
0.4
|
|
0.3
|
|
0.4
|
Total interest and dividend income
|
290.5
|
|
286.3
|
|
284.5
|
|
278.5
|
|
278.0
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
27.1
|
|
25.1
|
|
25.2
|
|
25.4
|
|
25.2
|
Borrowings
|
7.3
|
|
6.4
|
|
6.1
|
|
5.3
|
|
5.0
|
Notes and
debentures
|
7.5
|
|
8.0
|
|
7.9
|
|
7.8
|
|
7.7
|
Total interest expense
|
41.9
|
|
39.5
|
|
39.2
|
|
38.5
|
|
37.9
|
Net interest income
|
248.6
|
|
246.8
|
|
245.3
|
|
240.0
|
|
240.1
|
Provision for loan
losses
|
4.4
|
|
7.7
|
|
8.4
|
|
10.0
|
|
10.5
|
Net interest income after provision for loan losses
|
244.2
|
|
239.1
|
|
236.9
|
|
230.0
|
|
229.6
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
23.5
|
|
24.2
|
|
25.3
|
|
24.7
|
|
23.8
|
Investment
management fees
|
16.0
|
|
14.2
|
|
11.6
|
|
11.4
|
|
11.1
|
Operating
lease income
|
10.2
|
|
9.5
|
|
11.2
|
|
10.1
|
|
10.4
|
Insurance
revenue
|
9.1
|
|
6.8
|
|
9.8
|
|
7.0
|
|
9.3
|
Commercial
banking lending fees
|
8.2
|
|
7.2
|
|
7.1
|
|
9.2
|
|
8.1
|
Cash
management fees
|
6.3
|
|
6.2
|
|
6.5
|
|
6.3
|
|
6.0
|
Brokerage
commissions
|
3.0
|
|
2.8
|
|
3.2
|
|
3.2
|
|
3.0
|
Customer
interest rate swap income, net
|
2.8
|
|
3.8
|
|
3.7
|
|
3.6
|
|
3.3
|
Net gains on
sales of residential mortgage loans
|
0.9
|
|
2.6
|
|
1.9
|
|
0.9
|
|
0.9
|
Bank-owned
life insurance
|
0.8
|
|
1.5
|
|
1.2
|
|
2.0
|
|
1.0
|
Net security
(losses) gains
|
(15.7)
|
|
(6.0)
|
|
-
|
|
-
|
|
0.1
|
Other
non-interest income
|
19.6
|
|
11.4
|
|
9.3
|
|
7.0
|
|
5.3
|
Total non-interest income
|
84.7
|
|
84.2
|
|
90.8
|
|
85.4
|
|
82.3
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
125.6
|
|
114.0
|
|
116.1
|
|
111.4
|
|
114.1
|
Occupancy and
equipment
|
38.6
|
|
37.8
|
|
37.7
|
|
37.4
|
|
37.5
|
Professional
and outside services
|
15.5
|
|
16.3
|
|
17.7
|
|
16.4
|
|
17.4
|
Regulatory
assessments
|
9.6
|
|
10.4
|
|
9.9
|
|
9.2
|
|
8.0
|
Operating
lease expense
|
8.8
|
|
8.3
|
|
9.7
|
|
9.1
|
|
9.2
|
Amortization
of other acquisition-related intangible assets
|
6.3
|
|
6.2
|
|
5.8
|
|
5.8
|
|
5.8
|
Other
non-interest expense
|
21.8
|
|
24.2
|
|
24.5
|
|
23.6
|
|
25.3
|
Total non-interest expense (1)
|
226.1
|
|
217.2
|
|
221.4
|
|
212.9
|
|
217.3
|
Income before income tax expense
|
102.8
|
|
106.1
|
|
106.3
|
|
102.5
|
|
94.6
|
Income tax
expense
|
32.0
|
|
30.2
|
|
32.6
|
|
34.0
|
|
31.7
|
Net income
|
70.8
|
|
75.9
|
|
73.7
|
|
68.5
|
|
62.9
|
Preferred stock
dividend
|
3.5
|
|
1.8
|
|
-
|
|
-
|
|
-
|
Net income available to common shareholders
|
$
67.3
|
|
$
74.1
|
|
$
73.7
|
|
$
68.5
|
|
$
62.9
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
0.22
|
|
$
0.24
|
|
$
0.24
|
|
$
0.23
|
|
$
0.21
|
|
|
|
|
|
|
|
|
|
|
(1) Total
non-interest expense includes $1.2 million, $1.6 million and
$3.1 million of non-operating expenses for the three
|
months ended March 31, 2017,
December 31, 2016 and September 30, 2016, respectively. See
Non-GAAP Financial
|
Measures and Reconciliation
to GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
March 31,
2016
|
Three months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
370.5
|
$
0.7
|
0.81%
|
|
$
307.9
|
$
0.4
|
0.44%
|
|
$
347.8
|
$
0.4
|
0.47%
|
Securities
(2)
|
6,831.4
|
43.2
|
2.53
|
|
7,073.5
|
42.1
|
2.38
|
|
6,498.0
|
38.7
|
2.38
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
10,189.7
|
88.6
|
3.48
|
|
10,079.4
|
86.8
|
3.44
|
|
9,997.6
|
86.8
|
3.47
|
Commercial and
industrial
|
7,704.4
|
67.9
|
3.53
|
|
8,023.3
|
68.2
|
3.40
|
|
7,478.1
|
63.4
|
3.39
|
Equipment
financing
|
2,980.8
|
31.6
|
4.24
|
|
2,971.4
|
31.8
|
4.29
|
|
2,951.9
|
33.3
|
4.52
|
Residential
mortgage
|
6,374.8
|
49.6
|
3.11
|
|
6,136.2
|
47.3
|
3.09
|
|
5,540.3
|
44.1
|
3.18
|
Home equity
and other consumer
|
2,105.4
|
18.4
|
3.50
|
|
2,135.9
|
18.1
|
3.39
|
|
2,191.7
|
18.6
|
3.40
|
Total loans
|
29,355.1
|
256.1
|
3.49
|
|
29,346.2
|
252.2
|
3.44
|
|
28,159.6
|
246.2
|
3.50
|
Total earning assets
|
36,557.0
|
$300.0
|
3.28%
|
|
36,727.6
|
$294.7
|
3.21%
|
|
35,005.4
|
$285.3
|
3.26%
|
Other
assets
|
3,760.3
|
|
|
|
3,895.4
|
|
|
|
3,767.7
|
|
|
Total assets
|
$ 40,317.3
|
|
|
|
$ 40,623.0
|
|
|
|
$ 38,773.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
6,435.0
|
$
-
|
- %
|
|
$
6,524.5
|
$
-
|
- %
|
|
$
5,992.3
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
18,907.9
|
16.4
|
0.35
|
|
18,614.5
|
14.1
|
0.30
|
|
17,905.6
|
12.7
|
0.29
|
Time
|
4,580.3
|
10.7
|
0.93
|
|
4,634.4
|
11.0
|
0.95
|
|
4,823.6
|
12.5
|
1.03
|
Total deposits
|
29,923.2
|
27.1
|
0.36
|
|
29,773.4
|
25.1
|
0.34
|
|
28,721.5
|
25.2
|
0.35
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,711.9
|
5.8
|
0.86
|
|
3,028.8
|
5.1
|
0.67
|
|
2,880.0
|
4.4
|
0.61
|
Federal funds
purchased
|
607.5
|
1.2
|
0.78
|
|
779.3
|
1.1
|
0.54
|
|
394.0
|
0.4
|
0.44
|
Customer
repurchase agreements
|
309.5
|
0.1
|
0.19
|
|
328.8
|
0.2
|
0.20
|
|
389.6
|
0.2
|
0.19
|
Other
borrowings
|
79.9
|
0.2
|
0.78
|
|
11.0
|
-
|
0.67
|
|
-
|
-
|
-
|
Total borrowings
|
3,708.8
|
7.3
|
0.79
|
|
4,147.9
|
6.4
|
0.61
|
|
3,663.6
|
5.0
|
0.54
|
Notes and
debentures
|
965.8
|
7.5
|
3.10
|
|
1,045.0
|
8.0
|
3.08
|
|
1,043.8
|
7.7
|
2.96
|
Total funding liabilities
|
34,597.8
|
$
41.9
|
0.48%
|
|
34,966.3
|
$
39.5
|
0.45%
|
|
33,428.9
|
$
37.9
|
0.45%
|
Other
liabilities
|
553.6
|
|
|
|
617.4
|
|
|
|
583.4
|
|
|
Total liabilities
|
35,151.4
|
|
|
|
35,583.7
|
|
|
|
34,012.3
|
|
|
Stockholders'
equity
|
5,165.9
|
|
|
|
5,039.3
|
|
|
|
4,760.8
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 40,317.3
|
|
|
|
$ 40,623.0
|
|
|
|
$ 38,773.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$258.1
|
2.80%
|
|
|
$255.2
|
2.76%
|
|
|
$247.4
|
2.81%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.82%
|
|
|
|
2.78%
|
|
|
|
2.83%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average yields
earned and rates paid are annualized.
|
|
|
|
|
|
|
|
|
|
(2) Average balances
and yields for securities are based on amortized cost.
|
|
|
|
|
|
|
(3) The fully taxable
equivalent adjustment was $9.5 million, $8.4 million and $7.3
million for the three months ended March 31, 2017,
|
December 31, 2016 and
March 31, 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans acquired in
connection with business combinations are initially recorded at
fair value, determined based
|
|
|
upon an estimate of
expected cash flows, including a reduction for estimated credit
losses, and without carryover
|
|
|
of the respective
portfolio's historical allowance for loan losses. A decrease
in expected cash flows in subsequent
|
|
|
periods may indicate
that a loan is impaired, which would require the establishment of
an allowance for loan
|
|
|
|
losses. As
such, selected asset quality metrics have been highlighted to
distinguish between the 'originated'
|
|
|
|
portfolio and the
'acquired' portfolio.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
|
(dollars in
millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
23.4
|
$
|
22.3
|
$
|
23.4
|
$
|
35.4
|
$
|
35.9
|
|
|
Commercial and
industrial
|
|
47.4
|
|
41.5
|
|
40.0
|
|
34.7
|
|
41.5
|
|
|
Equipment
financing
|
|
47.4
|
|
39.4
|
|
46.0
|
|
40.0
|
|
41.1
|
|
|
Total
|
|
118.2
|
|
103.2
|
|
109.4
|
|
110.1
|
|
118.5
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
26.3
|
|
27.4
|
|
28.2
|
|
29.9
|
|
31.1
|
|
|
Home
equity
|
|
15.2
|
|
17.4
|
|
16.5
|
|
17.4
|
|
18.9
|
|
|
Other
consumer
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Total
|
|
41.5
|
|
44.8
|
|
44.7
|
|
47.3
|
|
50.0
|
|
|
Total originated non-performing loans (1)
|
|
159.7
|
|
148.0
|
|
154.1
|
|
157.4
|
|
168.5
|
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
10.9
|
|
8.1
|
|
7.9
|
|
9.7
|
|
8.2
|
|
|
Commercial
|
|
4.1
|
|
4.0
|
|
11.2
|
|
3.3
|
|
5.4
|
|
|
Total REO
|
|
15.0
|
|
12.1
|
|
19.1
|
|
13.0
|
|
13.6
|
|
|
Repossessed
assets
|
|
8.2
|
|
7.2
|
|
6.9
|
|
11.6
|
|
7.3
|
|
|
Total non-performing assets
|
$
|
182.9
|
$
|
167.3
|
$
|
180.1
|
$
|
182.0
|
$
|
189.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount) (2)
|
$
|
22.1
|
$
|
24.7
|
$
|
24.6
|
$
|
25.5
|
$
|
27.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.55
|
%
|
0.51
|
%
|
0.54
|
%
|
0.56
|
%
|
0.61
|
%
|
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
|
0.63
|
|
0.57
|
|
0.63
|
|
0.64
|
|
0.68
|
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
5.57
|
|
5.19
|
|
5.98
|
|
6.14
|
|
6.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $4.4 million at March 31, 2017,
$13.1 million at December 31, 2016,
|
|
|
$13.0 million at September
30, 2016, $15.8 million at June 30, 2016 and $16.2 million at March
31, 2016.
|
|
|
|
|
(2) Represents
acquired loans that meet People's United Financial's definition of
a non-performing loan but are not, under the
|
accounting model for
acquired loans, subject to classification as non-accrual in the
same manner as originated loans.
|
|
|
Because acquired loans are
initially recorded at an amount estimated to be collectible, losses
on such loans, when incurred,
|
are first applied against
the non-accretable difference established in purchase accounting
and then to any allowance for
|
|
loan losses recognized
subsequent to acquisition.
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
|
223.0
|
$
|
219.0
|
$
|
213.0
|
$
|
207.6
|
$
|
202.9
|
|
Charge-offs
|
|
(4.6)
|
|
(4.7)
|
|
(3.8)
|
|
(6.1)
|
|
(7.4)
|
|
Recoveries
|
|
2.2
|
|
1.0
|
|
1.4
|
|
1.0
|
|
1.7
|
|
Net loan charge-offs
|
|
(2.4)
|
|
(3.7)
|
|
(2.4)
|
|
(5.1)
|
|
(5.7)
|
|
Provision for
loan losses
|
|
4.4
|
|
7.7
|
|
8.4
|
|
10.5
|
|
10.4
|
|
Balance at end of period
|
|
225.0
|
|
223.0
|
|
219.0
|
|
213.0
|
|
207.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
6.3
|
|
7.3
|
|
7.4
|
|
7.9
|
|
8.1
|
|
Charge-offs
|
|
-
|
|
(1.0)
|
|
(0.1)
|
|
-
|
|
(0.3)
|
|
Provision for
loan losses
|
|
-
|
|
-
|
|
-
|
|
(0.5)
|
|
0.1
|
|
Balance at end of period
|
|
6.3
|
|
6.3
|
|
7.3
|
|
7.4
|
|
7.9
|
|
Total allowance for loan losses
|
$
|
231.3
|
$
|
229.3
|
$
|
226.3
|
$
|
220.4
|
$
|
215.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial originated
allowance for loan loss
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
0.94
|
%
|
0.95
|
%
|
0.94
|
%
|
0.92
|
%
|
0.92
|
%
|
Retail originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated retail loans
|
|
0.36
|
|
0.30
|
|
0.30
|
|
0.30
|
|
0.30
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
|
|
0.77
|
|
0.77
|
|
0.76
|
|
0.75
|
|
0.75
|
|
Originated non-performing loans
|
|
140.9
|
|
150.6
|
|
142.0
|
|
135.3
|
|
123.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
-
|
$
|
0.9
|
$
|
0.2
|
$
|
(0.1)
|
$
|
0.7
|
|
Commercial and
industrial
|
|
0.8
|
|
1.1
|
|
0.4
|
|
1.1
|
|
2.2
|
|
Equipment
financing
|
|
0.5
|
|
1.3
|
|
1.3
|
|
2.1
|
|
1.6
|
|
Total
|
|
1.3
|
|
3.3
|
|
1.9
|
|
3.1
|
|
4.5
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
0.1
|
|
-
|
|
0.4
|
|
0.7
|
|
-
|
|
Home
equity
|
|
1.1
|
|
1.3
|
|
0.1
|
|
1.2
|
|
1.4
|
|
Other
consumer
|
|
(0.1)
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.1
|
|
Total
|
|
1.1
|
|
1.4
|
|
0.6
|
|
2.0
|
|
1.5
|
|
Total net loan charge-offs
|
$
|
2.4
|
$
|
4.7
|
$
|
2.5
|
$
|
5.1
|
$
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.03
|
%
|
0.06
|
%
|
0.04
|
%
|
0.07
|
%
|
0.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
addition to evaluating People's United Financial Inc. ("People's
United") results of operations in accordance with
|
|
|
U.S. generally
accepted accounting principles ("GAAP"), management routinely
supplements its evaluation with an
|
|
|
analysis of certain
non-GAAP financial measures, such as the efficiency and tangible
common equity ratios, tangible
|
|
|
book value per common
share and operating earnings metrics. Management believes these
non-GAAP financial measures
|
|
provide information
useful to investors in understanding People's United's underlying
operating performance and
|
|
|
trends, and
facilitates comparisons with the performance of other financial
institutions. Further, the efficiency ratio and
|
|
|
operating earnings
metrics are used by management in its assessment of financial
performance, including non-interest
|
|
|
expense control,
while the tangible common equity ratio and tangible book value per
common share are used to analyze the
|
relative strength of
People's United's capital position.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The efficiency ratio, which represents an approximate measure of
the cost required by People's United to generate a
|
|
dollar of revenue, is
the ratio of (i) total non-interest expense (excluding
operating lease expense, goodwill impairment
|
|
|
charges, amortization
of other acquisition-related intangible assets, losses on real
estate assets and non-recurring expenses,
|
which are also
excluded in arriving at operating non-interest expense) (the
numerator) to (ii) net interest income on a
fully
|
|
taxable equivalent
("FTE") basis plus total non-interest income (including the FTE
adjustment on bank-owned life insurance
|
("BOLI") income, the
netting of operating lease expense and excluding gains and losses
on sales of assets other than
|
|
|
residential mortgage
loans and acquired loans, and non-recurring income) (the
denominator). People's United generally
|
|
|
considers an item of
income or expense to be non-recurring 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings exclude from net income available to common
shareholders those items that management considers to
|
be of such a
non-recurring or infrequent nature that, by excluding such items
(net of income taxes), People's United's results
|
can be measured and
assessed on a more consistent basis from period to period. Items
excluded from operating earnings,
|
|
which include, but
are not limited to: (i) non-recurring gains/losses; (ii)
merger-related expenses, including acquisition
|
|
|
integration and other
costs; (iii) writedowns of banking house assets and related lease
termination costs;
|
|
|
|
(iv)
severance-related costs; and (v) charges related to executive-level
management separation costs, are generally also
|
|
excluded when
calculating the efficiency ratio. Effective in 2016, recurring
writedowns of banking house assets and certain
|
severance-related
costs are no longer considered to be non-operating expenses.
Operating earnings per common share
|
|
|
("EPS") is derived by
determining the per common share impact of the respective
adjustments to arrive at operating earnings
|
and adding
(subtracting) such amounts to (from) EPS, as reported. Operating
return on average assets is calculated by
|
|
|
dividing operating
earnings (annualized) by average total assets. Operating return on
average tangible common equity is
|
|
|
calculated by
dividing operating earnings (annualized) by average tangible common
equity. The operating common dividend
|
payout ratio is
calculated by dividing common dividends paid by operating earnings
for the respective period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The tangible common equity ratio is the ratio of (i) tangible
common equity (total stockholders' equity less preferred
|
|
|
stock, goodwill and
other acquisition-related intangible assets) (the numerator) to
(ii) tangible assets (total assets less goodwill
|
and other
acquisition-related intangible assets) (the denominator). Tangible
book value per common share is calculated by
|
|
dividing tangible
common equity by common shares (total common shares issued, less
common shares classified as treasury
|
shares and
unallocated Employee Stock Ownership Plan ("ESOP") common
shares).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
light of diversity in presentation among financial institutions,
the methodologies used by People's United for
|
|
|
determining the
non-GAAP financial measures discussed above may differ from those
used by other financial
|
|
|
institutions.
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFICIENCY RATIO
AND OPERATING NON-INTEREST EXPENSE
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
Total non-interest
expense
|
|
$ 226.1
|
|
$ 217.2
|
|
$ 221.4
|
|
$ 212.9
|
|
$ 217.3
|
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(1.2)
|
|
(0.9)
|
|
(3.1)
|
|
-
|
|
-
|
|
Acquisition
integration and other costs
|
|
-
|
|
(0.7)
|
|
-
|
|
-
|
|
-
|
|
Total
|
|
(1.2)
|
|
(1.6)
|
|
(3.1)
|
|
n/a
|
|
n/a
|
|
Operating non-interest expense
|
|
224.9
|
|
215.6
|
|
218.3
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(8.8)
|
|
(8.3)
|
|
(9.7)
|
|
(9.1)
|
|
(9.2)
|
|
Amortization of other
acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(6.3)
|
|
(6.2)
|
|
(5.8)
|
|
(5.8)
|
|
(5.8)
|
|
Other (1)
|
|
(1.8)
|
|
(0.6)
|
|
(1.8)
|
|
(1.8)
|
|
(1.5)
|
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
208.0
|
|
$
200.5
|
|
$
201.0
|
|
$
196.2
|
|
$
200.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
258.1
|
|
$
255.2
|
|
$
254.2
|
|
$
247.7
|
|
$
247.4
|
|
Total non-interest
income
|
|
84.7
|
|
84.2
|
|
90.8
|
|
85.4
|
|
82.3
|
|
Total revenues
|
|
342.8
|
|
339.4
|
|
345.0
|
|
333.1
|
|
329.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Net security
losses (gains)
|
|
15.7
|
|
6.0
|
|
-
|
|
-
|
|
(0.1)
|
|
Operating
lease expense
|
|
(8.8)
|
|
(8.3)
|
|
(9.7)
|
|
(9.1)
|
|
(9.2)
|
|
BOLI FTE
adjustment
|
|
0.4
|
|
0.7
|
|
0.6
|
|
1.0
|
|
0.5
|
|
Other
(2)
|
|
0.2
|
|
0.2
|
|
(0.3)
|
|
-
|
|
(0.7)
|
|
Total revenues for efficiency ratio
|
|
$
350.3
|
|
$
338.0
|
|
$
335.6
|
|
$
325.0
|
|
$
320.2
|
|
Efficiency ratio
|
|
59.4%
|
|
59.3%
|
|
59.9%
|
|
60.4%
|
|
62.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a For the
three months ended June 30, 2016 and March 31, 2016, no expenses
were considered to be
|
|
non-operating
expenses. Accordingly, operating metrics were not
applicable.
|
|
|
|
|
|
(1) Items
classified as "other" and deducted from non-interest expense for
purposes of calculating the
|
|
efficiency ratio
include, as applicable, certain franchise taxes, real estate owned
expenses, contract
|
|
termination costs and
non-recurring expenses.
|
|
|
|
|
|
|
|
|
|
(2) Items
classified as "other" and added to (deducted from) total revenues
for purposes of calculating the
|
|
efficiency ratio
include, as applicable, asset write-offs and gains associated with
the sale of branch locations.
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in millions,
except per common share data)
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Net income available
to common shareholders
|
|
$
67.3
|
|
$
74.1
|
|
$
73.7
|
|
$
68.5
|
|
$
62.9
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
1.2
|
|
0.9
|
|
3.1
|
|
-
|
|
-
|
Acquisition
integration and other costs
|
|
-
|
|
0.7
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
1.2
|
|
1.6
|
|
3.1
|
|
n/a
|
|
n/a
|
Tax effect
|
|
(0.4)
|
|
(0.6)
|
|
(1.0)
|
|
n/a
|
|
n/a
|
Total adjustments, net of
tax
|
|
0.8
|
|
1.0
|
|
2.1
|
|
n/a
|
|
n/a
|
Operating earnings
|
|
$
68.1
|
|
$
75.1
|
|
$
75.8
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
EPS, as
reported
|
|
$
0.22
|
|
$
0.24
|
|
$
0.24
|
|
$
0.23
|
|
$
0.21
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
-
|
|
-
|
|
0.01
|
|
-
|
|
-
|
Acquisition
integration and other costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total adjustments per share
|
|
-
|
|
-
|
|
0.01
|
|
n/a
|
|
n/a
|
Operating EPS
|
|
$
0.22
|
|
$
0.24
|
|
$
0.25
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$40,317
|
|
$40,623
|
|
$40,304
|
|
$39,422
|
|
$38,773
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
0.68%
|
|
0.74%
|
|
0.75%
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Operating
earnings
|
|
$
68.1
|
|
$
75.1
|
|
$
75.8
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
5,166
|
|
$
5,039
|
|
$
4,841
|
|
$
4,795
|
|
$
4,761
|
Less: Average
preferred stock
|
|
244
|
|
165
|
|
-
|
|
-
|
|
-
|
Average common
equity
|
|
4,922
|
|
4,874
|
|
4,841
|
|
4,795
|
|
4,761
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,134
|
|
2,094
|
|
2,073
|
|
2,079
|
|
2,085
|
Average tangible
common equity
|
|
$
2,788
|
|
$
2,780
|
|
$
2,768
|
|
$
2,716
|
|
$
2,676
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
9.8%
|
|
10.8%
|
|
11.0%
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Common dividends
paid
|
|
$
52.7
|
|
$
51.7
|
|
$
51.7
|
|
$
51.7
|
|
$
50.6
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
$
68.1
|
|
$
75.1
|
|
$
75.8
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
77.3%
|
|
68.8%
|
|
68.2%
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
n/a For the
three months ended June 30, 2016 and March 31, 2016, no expenses
were considered to be
|
non-operating
expenses. Accordingly, operating metrics were not
applicable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Total stockholders'
equity
|
|
$
5,195
|
|
$
5,142
|
|
$
4,862
|
|
$
4,830
|
|
$
4,791
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
-
|
|
-
|
|
-
|
Common
equity
|
|
4,951
|
|
4,898
|
|
4,862
|
|
4,830
|
|
4,791
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,136
|
|
2,142
|
|
2,070
|
|
2,076
|
|
2,079
|
Tangible common
equity
|
|
$
2,815
|
|
$
2,756
|
|
$
2,792
|
|
$
2,754
|
|
$
2,712
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$40,302
|
|
$40,610
|
|
$40,692
|
|
$40,150
|
|
$39,264
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,136
|
|
2,142
|
|
2,070
|
|
2,076
|
|
2,079
|
Tangible
assets
|
|
$38,166
|
|
$38,468
|
|
$38,622
|
|
$38,074
|
|
$37,185
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.4%
|
|
7.2%
|
|
7.2%
|
|
7.2%
|
|
7.3%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in millions, except
per common share data)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Tangible common
equity
|
|
$
2,815
|
|
$
2,756
|
|
$
2,792
|
|
$
2,754
|
|
$
2,712
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
406.43
|
|
405.00
|
|
400.13
|
|
399.74
|
|
399.54
|
Less: Shares
classified as treasury shares
|
|
89.04
|
|
89.06
|
|
89.05
|
|
89.05
|
|
89.04
|
Unallocated ESOP shares
|
|
6.88
|
|
6.97
|
|
7.06
|
|
7.14
|
|
7.23
|
Common
shares
|
|
310.51
|
|
308.97
|
|
304.02
|
|
303.55
|
|
303.27
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
9.07
|
|
$
8.92
|
|
$
9.18
|
|
$
9.07
|
|
$
8.94
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-first-quarter-net-income-of-708-million-or-022-per-common-share-and-announces-common-dividend-increase-300442266.html
SOURCE People's United Financial, Inc.