BRIDGEPORT, Conn.,
Jan. 18, 2018 /PRNewswire/
-- People's United Financial, Inc. (NASDAQ: PBCT) today
reported net income of $106.2
million, or $0.30 per common
share, for the fourth quarter of 2017, compared to $75.9 million, or $0.24 per common share, for the fourth quarter of
2016, and $90.8 million, or
$0.26 per common share, for the third
quarter of 2017. For the year ended December
31, 2017, net income totaled $337.2
million, or $0.97 per common
share, compared to $281.0 million, or
$0.92 per common share, for
2016.
Included in both the fourth quarter and full year 2017
results were the following items, which are deemed non-operating,
given their non-recurring nature: merger-related expenses; security
losses incurred as a tax planning strategy in response to tax
reform; and a tax benefit realized in connection with tax reform.
The comparable periods in the prior year included merger-related
expenses and acquisition integration costs.
Operating earnings were $104.5
million, or $0.31 per common
share, for the fourth quarter of 2017, compared to $75.1 million, or $0.24 per common share, for the fourth quarter of
2016, and $89.3 million, or
$0.26 per common share, for the third
quarter of 2017. For the year ended December
31, 2017, operating earnings totaled $345.8 million, or $1.04 per common share, compared to $282.3 million, or $0.93 per common share, for 2016.
The Company's Board of Directors declared a $0.1725 per common share quarterly dividend
payable February 15, 2018 to
shareholders of record on February 1,
2018. Based on the closing stock price on January 17, 2018, the dividend yield on People's
United Financial common stock is 3.5 percent.
"The Company's performance in 2017 demonstrated our
commitment to enhancing profitability and building the business for
the long-term," commented Jack
Barnes, President and Chief Executive Officer. "Full year
operating earnings of $345.8 million
is the highest in the bank's 175 year history, while operating
earnings per common share of $1.04
increased for the eighth consecutive year. Period-end loan and
deposit balances were $32.6 billion
and $33.1 billion, respectively, up
10 percent and 11 percent from a year ago. These results reflect
the hard work of our employees who successfully closed and
integrated two acquisitions during the year and delivered continued
organic growth across the franchise."
Barnes concluded, "We are excited by the opportunities in
front of us to further strengthen and grow the Company. In the year
ahead, we will continue to enhance technology and marketing
capabilities to better serve existing relationships and develop new
ones. We will also provide new and refreshed products as well as
align technology-based offerings with our expert bankers to drive a
unique client experience. We are confident revenue producing
investments along with synergies created by recent acquisitions
will result in continued improvement in operating leverage and
further create value for shareholders in 2018 and
beyond."
"We closed out 2017 with another quarter of strong
financial performance," stated David
Rosato, Senior Executive Vice President and Chief Financial
Officer. "Record quarterly operating earnings of $104.5 million increased 17 percent on a
linked-quarter basis and generated an operating return on average
tangible common equity of 14.1 percent. These results benefited
from further improvement in net interest margin, higher fee income
and well-controlled expenses. The quarter was also favorably
impacted by a lower effective tax rate primarily due to continued
investment in tax preferenced items as well as a tax benefit
realized as a result of recently enacted tax reform."
Rosato concluded, "Linked-quarter loan growth continued to
highlight the importance of our diversified business mix.
Period-end loan growth was driven by strong results across each of
our equipment financing units and solid production in middle market
commercial and industrial lending. These increases were partially
offset by lower commercial real estate balances primarily due to
market conditions and continued runoff of the transactional portion
of our New York multifamily
portfolio. Period-end deposits were up from the end of the third
quarter reflecting higher demand deposits as well as a successful
CD offering celebrating the Company's 175th anniversary.
On an average balance basis, loans and deposits increased four
percent and ten percent annualized, respectively."
Net loan charge-offs as a percentage of average total
loans on an annualized basis were 0.08 percent in the fourth
quarter of 2017, an increase from 0.06 percent in both the third
quarter of 2017 and fourth quarter of 2016. For the
originated loan portfolio, non-performing loans equaled 0.49
percent of loans at December 31,
2017, an improvement from both 0.59 percent at September 30, 2017 and 0.51 percent at
December 31, 2016.
Return on average assets of 0.96 percent for the fourth
quarter of 2017 was an increase from both 0.84 percent in the third
quarter of 2017 and 0.75 percent in the fourth quarter of
2016. Return on average tangible common equity of 13.8
percent for the fourth quarter of 2017 was an increase from both
11.8 percent in the third quarter of 2017 and 10.7 percent in the
fourth quarter of 2016.
At December 31, 2017,
People's United Financial's common equity tier 1 capital and total
risk-based capital ratios were 9.7 percent and 12.2 percent,
respectively, and the tangible common equity ratio stood at 7.2
percent. For People's United Bank, N.A., the common equity
tier 1 capital and total risk-based capital ratios were 10.7
percent and 12.6 percent, respectively, at December 31, 2017.
People's United Financial, Inc., a diversified financial
services company with $44 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.
4Q 2017 Financial Highlights
Summary
- Net income totaled $106.2
million, or $0.30 per common
share.
-
- Net income available to common shareholders totaled
$102.7 million.
- Operating earnings totaled $104.5
million, or $0.31 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $292.3
million in 4Q17 compared to $284.6
million in 3Q17.
- Net interest margin increased three basis points from
3Q17 to 3.07% reflecting:
-
- Higher yields on the loan portfolio (increase of six
basis points).
- Higher yields on the securities portfolio (increase of
one basis point).
- Higher rates on deposits (decrease of four basis
points).
- Provision for loan losses totaled $7.5 million.
-
- Net loan charge-offs totaled $6.5
million.
- Net loan charge-off ratio of 0.08% in 4Q17.
- Non-interest income totaled $87.3
million in 4Q17 compared to $89.3
million in 3Q17.
-
- Customer interest rate swap income increased $3.3 million.
- Commercial banking lending fees increased $1.8 million.
- Insurance revenue decreased $2.8
million, reflecting the seasonality of commercial insurance
renewals.
- Bank service charges decreased $0.6 million.
- Net security losses of $9.8
million in 4Q17 include losses totaling $10.0 million incurred as a tax planning strategy
in response to tax reform (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- At December 31, 2017,
assets under administration, which are not reported as assets of
People's United Financial, totaled $23.8
billion, of which $9.1 billion
are under discretionary management, compared to $23.0 billion and $8.9
billion, respectively, at September
30, 2017.
- Non-interest expense totaled $239.7 million in 4Q17 compared to $237.1 million in 3Q17.
-
- Operating non-interest expense totaled $238.1 million in 4Q17 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $0.6 million of merger-related expenses in 4Q17,
increased $1.8 million, primarily
reflecting higher incentive and health care costs.
- Regulatory assessment expense increased $1.6 million.
- Professional and outside services expense, excluding
$1.0 million and $2.7 million of merger-related expenses in 4Q17
and 3Q17, respectively, increased $1.2
million.
- The efficiency ratio was 56.1% for 4Q17 compared to 57.3%
for 3Q17 (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- The effective income tax rate was 19.8% for 4Q17 and
27.8% for the full-year of 2017, compared to 31.4% for the
full-year of 2016 (28.5% for 4Q16).
-
- The lower rates in 2017 reflect the continued benefit of
tax advantaged investments, the effects of certain tax planning
strategies and a $6.5 million benefit
realized in connection with tax reform (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
Commercial Banking
- Commercial loans totaled $23.7
billion at December 31, 2017,
an increase of $194 million, or 3%
annualized, from September 30,
2017.
-
- The mortgage warehouse portfolio increased $22 million from September
30, 2017.
- Average commercial loans totaled $23.4 billion in 4Q17, an increase of
$236 million, or 4% annualized, from
3Q17.
-
- The average mortgage warehouse portfolio decreased
$107 million from 3Q17.
- Commercial deposits totaled $12.1
billion at December 31, 2017
compared to $12.0 billion at
September 30, 2017.
- The ratio of originated non-performing commercial loans
to originated commercial loans was 0.49% at December 31, 2017 compared to 0.59% at
September 30, 2017.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $112.4
million at December 31, 2017
compared to $137.4 million at
September 30, 2017.
- For the originated commercial loan portfolio, the
allowance for loan losses as a percentage of loans was 0.93% at
December 31, 2017 compared to 0.94%
at September 30, 2017.
- The originated commercial allowance for loan losses
represented 200% of originated non-performing commercial loans at
December 31, 2017 compared to 159% at
September 30, 2017.
Retail Banking
- Residential mortgage loans totaled $6.8 billion at December
31, 2017, an increase of $25
million, or 1% annualized, from September 30, 2017.
-
- Average residential mortgage loans
totaled $6.8 billion in 4Q17, an
increase of $75 million, or 4%
annualized, from 3Q17.
- Home equity loans totaled $2.0
billion at December 31, 2017,
a $26 million decrease from
September 30, 2017.
-
- Average home equity loans totaled $2.0 billion in 4Q17, a $31 million decrease from 3Q17.
- Retail deposits totaled $20.9
billion at December 31, 2017
compared to $20.6 billion at
September 30, 2017.
- The ratio of originated non-performing residential
mortgage loans to originated residential mortgage loans was 0.50%
at December 31, 2017 compared to
0.52% at September 30,
2017.
- The ratio of originated non-performing home equity loans
to originated home equity loans was 0.78% at December 31, 2017 compared to 0.74% at
September 30, 2017.
Conference Call
On January 18, 2018, at 5
p.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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Dec. 31,
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Sept. 30,
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June 30,
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March 31,
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Dec. 31,
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(dollars in millions,
except per common share data)
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2017
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2017
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2017
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2017
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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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304.1
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$
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295.8
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$
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285.2
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$
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258.1
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$
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255.2
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Net interest
income
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292.3
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284.6
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274.9
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248.6
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246.8
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Provision for
loan losses
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7.5
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7.0
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7.1
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4.4
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7.7
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Non-interest
income (1)
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87.3
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89.3
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91.6
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84.7
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84.2
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Non-interest
expense (1)
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239.7
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237.1
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257.3
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226.1
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217.2
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Income before
income tax expense
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132.4
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129.8
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102.1
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102.8
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106.1
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Net
income
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106.2
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90.8
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69.3
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70.8
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75.9
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Net income
available to common shareholders (1)
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102.7
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87.3
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65.8
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67.3
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74.1
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Selected
Statistical Data:
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Net interest
margin (2)
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3.07
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%
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3.04
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%
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2.96
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%
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2.82
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%
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2.78
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%
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Return on
average assets (1), (2)
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0.96
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0.84
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0.65
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0.70
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0.75
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Return on
average common equity (2)
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7.4
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6.4
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4.8
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5.5
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6.1
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Return on
average tangible common equity (1), (2)
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13.8
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11.8
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8.7
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9.6
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10.7
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Efficiency
ratio (1)
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56.1
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57.3
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58.4
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59.4
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59.3
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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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0.30
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$
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0.26
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$
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0.19
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$
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0.22
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$
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0.24
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Dividends paid
per common share
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0.1725
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0.1725
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0.1725
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0.17
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0.17
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Common
dividend payout ratio (1)
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57.1
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%
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66.8
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%
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88.6
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%
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78.3
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%
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69.8
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%
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Book value per
common share (end of period)
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$
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16.40
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$
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16.29
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$
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16.18
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$
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15.94
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$
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15.85
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Tangible book
value per common share (end of period) (1)
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8.87
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8.68
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8.99
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9.07
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8.92
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Stock
price:
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High
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19.50
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18.26
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18.21
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19.85
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20.13
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Low
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17.58
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15.97
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16.44
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17.47
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15.28
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Close (end of period)
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18.70
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18.14
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17.66
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18.20
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19.36
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Common shares
(end of period) (in millions)
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339.98
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337.84
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337.51
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310.51
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308.97
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Weighted
average diluted common shares (in millions)
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340.60
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338.82
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338.51
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311.08
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306.23
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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
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Twelve Months
Ended
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December
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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Earnings
Data:
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Net interest
income (fully taxable equivalent)
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$
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1,143.2
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$
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1,004.5
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Net interest
income
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1,100.5
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972.2
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Provision for
loan losses
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26.0
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36.6
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Non-interest
income (1)
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352.9
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342.7
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Non-interest
expense (1)
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960.3
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868.8
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Income before
income tax expense
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467.1
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409.5
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Net
income
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337.2
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281.0
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Net income
available to common shareholders (1)
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323.1
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279.2
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Selected
Statistical Data:
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Net interest
margin
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2.98
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%
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2.80
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%
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Return on
average assets (1)
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0.79
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0.71
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Return on
average common equity
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6.0
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5.8
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Return on
average tangible common equity (1)
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11.0
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10.2
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Efficiency
ratio (1)
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57.7
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60.5
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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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0.97
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$
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0.92
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Dividends paid
per common share
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0.6875
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0.6775
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Common
dividend payout ratio (1)
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70.6
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%
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73.7
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%
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Book value per
common share (end of period)
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$
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16.40
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$
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15.85
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Tangible book
value per common share (end of period) (1)
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8.87
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8.92
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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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Low
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15.97
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13.62
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Close (end of period)
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18.70
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19.36
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Common shares
(end of period) (in millions)
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339.98
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308.97
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Weighted
average diluted common shares (in millions)
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332.36
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303.99
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(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
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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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Dec. 31,
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Sept. 30,
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June 30,
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March 31,
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Dec. 31,
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(dollars in
millions)
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2017
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2017
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2017
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2017
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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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44,453
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$
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43,998
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$
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43,023
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$
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40,230
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$
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40,610
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Loans
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32,575
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32,384
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31,611
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29,687
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29,745
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Securities
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7,043
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6,914
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6,880
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6,424
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6,738
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Short-term investments
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378
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303
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|
216
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392
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182
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Allowance for loan losses
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234
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233
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|
232
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|
231
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|
229
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Goodwill and other acquisition-related intangible assets
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2,560
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2,568
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|
2,426
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|
2,136
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|
2,142
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Deposits
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33,056
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|
32,547
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|
31,815
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|
30,506
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|
29,861
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Borrowings
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|
4,104
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|
4,144
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|
4,084
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3,183
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4,057
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Notes and debentures
|
|
902
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|
906
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|
907
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|
904
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|
1,030
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|
Stockholders' equity
|
|
5,820
|
|
5,746
|
|
5,704
|
|
5,195
|
|
5,142
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
33,261
|
|
33,029
|
|
32,095
|
|
30,229
|
|
30,540
|
|
People's United
Bank, N.A.
|
|
33,240
|
|
32,981
|
|
32,050
|
|
30,202
|
|
30,489
|
|
Non-performing assets (2)
|
|
168
|
|
191
|
|
198
|
|
183
|
|
167
|
|
Net loan charge-offs
|
|
6.5
|
|
5.2
|
|
6.8
|
|
2.4
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
32,271
|
$
|
31,994
|
$
|
31,400
|
$
|
29,355
|
$
|
29,346
|
|
Securities (3)
|
|
7,023
|
|
6,559
|
|
6,728
|
|
6,831
|
|
7,074
|
|
Short-term investments
|
|
361
|
|
347
|
|
355
|
|
371
|
|
308
|
|
Total earning assets
|
|
39,654
|
|
38,900
|
|
38,483
|
|
36,557
|
|
36,728
|
|
Total assets
|
|
44,039
|
|
43,256
|
|
42,666
|
|
40,317
|
|
40,623
|
|
Deposits
|
|
32,879
|
|
32,065
|
|
32,024
|
|
29,923
|
|
29,773
|
|
Borrowings
|
|
3,836
|
|
4,010
|
|
3,498
|
|
3,709
|
|
4,148
|
|
Notes and debentures
|
|
904
|
|
909
|
|
907
|
|
966
|
|
1,045
|
|
Total funding liabilities
|
|
37,619
|
|
36,984
|
|
36,429
|
|
34,598
|
|
34,966
|
|
Stockholders' equity
|
|
5,774
|
|
5,722
|
|
5,696
|
|
5,166
|
|
5,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
|
0.08
|
%
|
0.06
|
%
|
0.09
|
%
|
0.03
|
%
|
0.06
|
%
|
Non-performing assets to originated loans,
|
|
|
|
|
|
|
|
|
|
|
|
real estate owned and
repossessed assets (2)
|
|
0.56
|
|
0.64
|
|
0.67
|
|
0.63
|
|
0.57
|
|
Originated allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
(2)
|
|
0.77
|
|
0.77
|
|
0.77
|
|
0.77
|
|
0.77
|
|
Originated
non-performing loans (2)
|
|
155.2
|
|
131.6
|
|
128.1
|
|
140.9
|
|
150.6
|
|
Average stockholders' equity to average total assets
|
|
13.1
|
|
13.2
|
|
13.4
|
|
12.8
|
|
12.4
|
|
Stockholders' equity to total assets
|
|
13.1
|
|
13.1
|
|
13.3
|
|
12.9
|
|
12.7
|
|
Tangible common equity to tangible assets (4)
|
|
7.2
|
|
7.1
|
|
7.5
|
|
7.4
|
|
7.2
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.2
|
|
12.0
|
|
12.6
|
|
12.7
|
|
12.5
|
|
People's United
Bank, N.A.
|
|
12.6
|
|
12.6
|
|
13.3
|
|
13.4
|
|
13.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) December 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
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
Dec. 31,
|
(in
millions)
|
2017
|
2017
|
2017
|
2016
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
505.1
|
$
414.1
|
$
455.9
|
$
432.4
|
Short-term
investments
|
377.5
|
302.5
|
216.3
|
181.7
|
Total cash and cash equivalents
|
882.6
|
716.6
|
672.2
|
614.1
|
Securities:
|
|
|
|
|
Trading
account securities, at fair value
|
8.2
|
8.3
|
7.8
|
6.8
|
Securities
available for sale, at fair value
|
3,134.0
|
3,197.5
|
3,682.3
|
4,409.9
|
Securities
held to maturity, at amortized cost
|
3,588.1
|
3,387.6
|
2,875.6
|
2,005.4
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
312.3
|
320.9
|
314.3
|
315.8
|
Total securities
|
7,042.6
|
6,914.3
|
6,880.0
|
6,737.9
|
Loans held for
sale
|
16.6
|
15.0
|
26.5
|
39.3
|
Loans:
|
|
|
|
|
Commercial
real estate
|
11,068.7
|
11,180.5
|
11,164.2
|
10,247.3
|
Commercial and
industrial
|
8,731.1
|
8,624.7
|
8,709.7
|
8,125.1
|
Equipment
financing
|
3,905.4
|
3,705.6
|
2,918.3
|
3,032.5
|
Total Commercial Portfolio
|
23,705.2
|
23,510.8
|
22,792.2
|
21,404.9
|
Residential
mortgage
|
6,805.7
|
6,781.0
|
6,687.7
|
6,216.7
|
Home equity
and other consumer
|
2,064.4
|
2,092.7
|
2,131.3
|
2,123.3
|
Total Retail Portfolio
|
8,870.1
|
8,873.7
|
8,819.0
|
8,340.0
|
Total loans
|
32,575.3
|
32,384.5
|
31,611.2
|
29,744.9
|
Less allowance
for loan losses
|
(234.4)
|
(233.4)
|
(231.6)
|
(229.3)
|
Total loans, net
|
32,340.9
|
32,151.1
|
31,379.6
|
29,515.6
|
Goodwill and other
acquisition-related intangible assets
|
2,560.0
|
2,567.9
|
2,426.3
|
2,142.1
|
Bank-owned life
insurance
|
405.0
|
405.6
|
404.7
|
349.1
|
Premises and
equipment, net
|
253.0
|
264.7
|
270.2
|
244.5
|
Other
assets
|
952.7
|
963.0
|
963.7
|
967.2
|
Total assets
|
$ 44,453.4
|
$ 43,998.2
|
$ 43,023.2
|
$ 40,609.8
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
8,002.4
|
$
7,655.3
|
$
7,566.4
|
$
6,660.8
|
Savings
|
4,410.5
|
4,513.1
|
4,668.6
|
4,397.7
|
Interest-bearing checking and money market
|
15,189.1
|
15,143.1
|
14,887.0
|
14,260.1
|
Time
|
5,454.3
|
5,235.8
|
4,692.7
|
4,542.2
|
Total deposits
|
33,056.3
|
32,547.3
|
31,814.7
|
29,860.8
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,774.4
|
3,074.1
|
3,130.8
|
3,061.1
|
Federal funds
purchased
|
820.0
|
543.0
|
629.0
|
617.0
|
Customer
repurchase agreements
|
301.6
|
295.8
|
324.0
|
343.3
|
Other
borrowings
|
207.8
|
231.1
|
0.6
|
35.4
|
Total borrowings
|
4,103.8
|
4,144.0
|
4,084.4
|
4,056.8
|
Notes and
debentures
|
901.6
|
906.2
|
906.5
|
1,030.1
|
Other
liabilities
|
571.8
|
654.6
|
514.1
|
520.2
|
Total liabilities
|
38,633.5
|
38,252.1
|
37,319.7
|
35,467.9
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
244.1
|
Common
stock
|
4.4
|
4.3
|
4.3
|
4.0
|
Additional paid-in
capital
|
6,012.3
|
5,972.2
|
5,965.0
|
5,446.1
|
Retained
earnings
|
1,040.2
|
996.4
|
967.8
|
949.3
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(137.3)
|
(139.1)
|
(141.0)
|
(144.6)
|
Accumulated other
comprehensive loss
|
(181.7)
|
(169.7)
|
(174.6)
|
(195.0)
|
Treasury stock, at
cost
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
(1,162.0)
|
Total stockholders' equity
|
5,819.9
|
5,746.1
|
5,703.5
|
5,141.9
|
Total liabilities and stockholders' equity
|
$ 44,453.4
|
$ 43,998.2
|
$ 43,023.2
|
$ 40,609.8
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
(in millions, except
per common share data)
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$ 106.2
|
|
$ 105.6
|
|
$ 105.3
|
|
$
88.6
|
|
$
86.8
|
Commercial and
industrial
|
80.1
|
|
80.0
|
|
74.1
|
|
64.6
|
|
65.0
|
Equipment
financing
|
47.4
|
|
41.5
|
|
31.5
|
|
31.6
|
|
31.8
|
Residential
mortgage
|
53.4
|
|
52.5
|
|
52.3
|
|
49.3
|
|
47.0
|
Home equity
and other consumer
|
20.7
|
|
21.0
|
|
19.9
|
|
18.4
|
|
18.1
|
Total interest on loans
|
307.8
|
|
300.6
|
|
283.1
|
|
252.5
|
|
248.7
|
Securities
|
41.6
|
|
37.2
|
|
37.9
|
|
37.0
|
|
36.9
|
Short-term
investments
|
1.0
|
|
1.1
|
|
0.9
|
|
0.7
|
|
0.4
|
Loans held for
sale
|
0.2
|
|
0.3
|
|
0.1
|
|
0.3
|
|
0.3
|
Total interest and dividend income
|
350.6
|
|
339.2
|
|
322.0
|
|
290.5
|
|
286.3
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
38.3
|
|
34.4
|
|
30.9
|
|
27.1
|
|
25.1
|
Borrowings
|
12.4
|
|
12.7
|
|
8.9
|
|
7.3
|
|
6.4
|
Notes and
debentures
|
7.6
|
|
7.5
|
|
7.3
|
|
7.5
|
|
8.0
|
Total interest expense
|
58.3
|
|
54.6
|
|
47.1
|
|
41.9
|
|
39.5
|
Net interest income
|
292.3
|
|
284.6
|
|
274.9
|
|
248.6
|
|
246.8
|
Provision for loan
losses
|
7.5
|
|
7.0
|
|
7.1
|
|
4.4
|
|
7.7
|
Net interest income after provision for loan losses
|
284.8
|
|
277.6
|
|
267.8
|
|
244.2
|
|
239.1
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
24.7
|
|
25.3
|
|
25.0
|
|
23.5
|
|
24.2
|
Investment
management fees
|
17.3
|
|
16.9
|
|
16.3
|
|
16.0
|
|
14.2
|
Operating
lease income
|
11.7
|
|
10.9
|
|
11.0
|
|
10.2
|
|
9.5
|
Commercial
banking lending fees
|
8.8
|
|
7.0
|
|
11.5
|
|
8.2
|
|
7.2
|
Insurance
revenue
|
6.9
|
|
9.7
|
|
7.5
|
|
9.1
|
|
6.8
|
Cash
management fees
|
6.5
|
|
6.8
|
|
6.5
|
|
6.3
|
|
6.2
|
Customer
interest rate swap income, net
|
5.2
|
|
1.9
|
|
2.4
|
|
2.8
|
|
3.8
|
Brokerage
commissions
|
2.9
|
|
2.8
|
|
3.4
|
|
3.0
|
|
2.8
|
Bank-owned
life insurance
|
1.5
|
|
2.1
|
|
1.9
|
|
0.8
|
|
1.5
|
Net gains on
sales of residential mortgage loans
|
0.5
|
|
1.1
|
|
0.7
|
|
0.9
|
|
2.6
|
Net security
(losses) gains (1)
|
(9.8)
|
|
-
|
|
0.1
|
|
(15.7)
|
|
(6.0)
|
Other
non-interest income
|
11.1
|
|
4.8
|
|
5.3
|
|
19.6
|
|
11.4
|
Total non-interest income
|
87.3
|
|
89.3
|
|
91.6
|
|
84.7
|
|
84.2
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
130.4
|
|
128.0
|
|
130.0
|
|
125.6
|
|
114.0
|
Occupancy and
equipment
|
41.0
|
|
40.2
|
|
39.8
|
|
38.6
|
|
37.8
|
Professional
and outside services
|
18.7
|
|
19.2
|
|
28.1
|
|
15.5
|
|
16.3
|
Regulatory
assessments
|
11.9
|
|
10.3
|
|
9.9
|
|
9.6
|
|
10.4
|
Operating
lease expense
|
8.9
|
|
8.8
|
|
8.7
|
|
8.8
|
|
8.3
|
Amortization
of other acquisition-related intangible assets
|
7.9
|
|
7.9
|
|
7.9
|
|
6.3
|
|
6.2
|
Other
non-interest expense
|
20.9
|
|
22.7
|
|
32.9
|
|
21.7
|
|
24.2
|
Total non-interest expense (1)
|
239.7
|
|
237.1
|
|
257.3
|
|
226.1
|
|
217.2
|
Income before income tax expense
|
132.4
|
|
129.8
|
|
102.1
|
|
102.8
|
|
106.1
|
Income tax expense
(1)
|
26.2
|
|
39.0
|
|
32.8
|
|
32.0
|
|
30.2
|
Net income
|
106.2
|
|
90.8
|
|
69.3
|
|
70.8
|
|
75.9
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
1.8
|
Net income available to common shareholders
|
$ 102.7
|
|
$
87.3
|
|
$
65.8
|
|
$
67.3
|
|
$
74.1
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
0.30
|
|
$
0.26
|
|
$
0.19
|
|
$
0.22
|
|
$
0.24
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $10.0
million of security losses incurred as a tax planning strategy in
response to tax reform enacted on December 22, 2017,
|
which are considered
non-operating for the three months ended December 31, 2017. Total
non-interest expense includes
|
$1.6 million, $3.0 million,
$24.8 million, $1.2 million and $1.6 million of non-operating
expenses for the three months ended
|
December 31, 2017, September
30, 2017, June 30, 2017, March, 31, 2017 and December 31, 2016,
respectively. Income tax
|
expense includes a $6.5
million benefit realized in connection with tax reform, which is
considered non-operating for the three
|
months ended December 31,
2017. See Non-GAAP Financial Measures and Reconciliation to
GAAP.
|
|
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
December
31,
|
(in millions, except
per common share data)
|
2017
|
|
2016
|
Interest and
dividend income:
|
|
|
|
Commercial
real estate
|
$
405.7
|
|
$
344.6
|
Commercial and
industrial
|
298.8
|
|
255.0
|
Equipment
financing
|
152.1
|
|
130.9
|
Residential
mortgage
|
207.5
|
|
180.4
|
Home equity
and other consumer
|
80.0
|
|
73.5
|
Total interest on loans
|
1,144.1
|
|
984.4
|
Securities
|
153.7
|
|
140.3
|
Short-term
investments
|
3.7
|
|
1.1
|
Loans held for
sale
|
0.9
|
|
1.5
|
Total interest and dividend income
|
1,302.4
|
|
1,127.3
|
Interest
expense:
|
|
|
|
Deposits
|
130.7
|
|
100.9
|
Borrowings
|
41.3
|
|
22.8
|
Notes and
debentures
|
29.9
|
|
31.4
|
Total interest expense
|
201.9
|
|
155.1
|
Net interest income
|
1,100.5
|
|
972.2
|
Provision for loan
losses
|
26.0
|
|
36.6
|
Net interest income after provision for loan losses
|
1,074.5
|
|
935.6
|
Non-interest
income:
|
|
|
|
Bank service
charges
|
98.5
|
|
98.0
|
Investment
management fees
|
66.5
|
|
48.3
|
Operating
lease income
|
43.8
|
|
41.2
|
Commercial
banking lending fees
|
35.5
|
|
31.6
|
Insurance
revenue
|
33.2
|
|
32.9
|
Cash
management fees
|
26.1
|
|
25.0
|
Customer
interest rate swap income, net
|
12.3
|
|
14.4
|
Brokerage
commissions
|
12.1
|
|
12.2
|
Bank-owned
life insurance
|
6.3
|
|
5.7
|
Net gains on
sales of residential mortgage loans
|
3.2
|
|
6.3
|
Net security
losses (1)
|
(25.4)
|
|
(5.9)
|
Other
non-interest income
|
40.8
|
|
33.0
|
Total non-interest income
|
352.9
|
|
342.7
|
Non-interest
expense:
|
|
|
|
Compensation
and benefits
|
514.0
|
|
455.6
|
Occupancy and
equipment
|
159.6
|
|
150.4
|
Professional
and outside services
|
81.5
|
|
67.8
|
Regulatory
assessments
|
41.7
|
|
37.5
|
Operating
lease expense
|
35.2
|
|
36.3
|
Amortization
of other acquisition-related intangible assets
|
30.0
|
|
23.6
|
Other
non-interest expense
|
98.3
|
|
97.6
|
Total non-interest expense (1)
|
960.3
|
|
868.8
|
Income before income tax expense
|
467.1
|
|
409.5
|
Income tax expense
(1)
|
129.9
|
|
128.5
|
Net income
|
337.2
|
|
281.0
|
Preferred stock
dividend
|
14.1
|
|
1.8
|
Net income available to common shareholders
|
$
323.1
|
|
$
279.2
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
0.97
|
|
$
0.92
|
|
|
|
|
(1) Includes $10.0
million of security losses incurred as a tax planning strategy in
response to tax reform enacted on
|
December 22, 2017, which are
considered non-operating for the twelve months ended December 31,
2017. Total non-interest
|
expense includes $30.6
million and $4.7 million of non-operating expenses for the twelve
months ended December 31, 2017
|
and 2016, respectively.
Income tax expense includes a $6.5 million benefit realized in
connection with tax reform, which is
|
considered non-operating for
the twelve months ended December 31, 2017. See Non-GAAP Financial
Measures and
|
Reconciliation to
GAAP.
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017
|
|
September 30,
2017
|
|
December 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
|
$
360.7
|
$
1.0
|
1.16%
|
|
$
347.3
|
$
1.1
|
1.25%
|
|
$
307.9
|
$
0.4
|
0.44%
|
Securities
(2)
|
7,022.6
|
49.2
|
2.80
|
|
6,558.8
|
44.4
|
2.71
|
|
7,073.5
|
42.1
|
2.38
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
11,101.5
|
106.2
|
3.83
|
|
11,169.8
|
105.6
|
3.78
|
|
10,079.4
|
86.8
|
3.44
|
Commercial and
industrial
|
8,533.3
|
84.3
|
3.95
|
|
8,580.0
|
84.0
|
3.91
|
|
8,023.3
|
68.2
|
3.40
|
Equipment
financing
|
3,750.4
|
47.4
|
5.05
|
|
3,399.5
|
41.5
|
4.89
|
|
2,971.4
|
31.8
|
4.29
|
Residential
mortgage
|
6,806.5
|
53.6
|
3.15
|
|
6,731.7
|
52.8
|
3.13
|
|
6,136.2
|
47.3
|
3.09
|
Home equity
and other consumer
|
2,079.0
|
20.7
|
3.99
|
|
2,112.6
|
21.0
|
3.97
|
|
2,135.9
|
18.1
|
3.39
|
Total loans
|
32,270.7
|
312.2
|
3.87
|
|
31,993.6
|
304.9
|
3.81
|
|
29,346.2
|
252.2
|
3.44
|
Total earning assets
|
39,654.0
|
$362.4
|
3.66%
|
|
38,899.7
|
$350.4
|
3.60%
|
|
36,727.6
|
$
294.7
|
3.21%
|
Other
assets
|
4,384.6
|
|
|
|
4,356.7
|
|
|
|
3,895.4
|
|
|
Total assets
|
$ 44,038.6
|
|
|
|
$ 43,256.4
|
|
|
|
$ 40,623.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
7,855.0
|
$
-
|
- %
|
|
$
7,609.1
|
$
-
|
- %
|
|
$
6,524.5
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
19,605.7
|
22.7
|
0.46
|
|
19,529.1
|
21.4
|
0.44
|
|
18,614.5
|
14.1
|
0.30
|
Time
|
5,417.8
|
15.6
|
1.15
|
|
4,926.8
|
13.0
|
1.06
|
|
4,634.4
|
11.0
|
0.95
|
Total deposits
|
32,878.5
|
38.3
|
0.47
|
|
32,065.0
|
34.4
|
0.43
|
|
29,773.4
|
25.1
|
0.34
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,616.7
|
9.2
|
1.40
|
|
2,834.3
|
9.4
|
1.33
|
|
3,028.8
|
5.1
|
0.67
|
Federal funds
purchased
|
690.5
|
2.3
|
1.32
|
|
649.9
|
2.1
|
1.26
|
|
779.3
|
1.1
|
0.54
|
Customer
repurchase agreements
|
309.2
|
0.1
|
0.19
|
|
311.3
|
0.1
|
0.19
|
|
328.8
|
0.2
|
0.20
|
Other
borrowings
|
219.4
|
0.8
|
1.46
|
|
214.2
|
1.1
|
2.06
|
|
11.0
|
-
|
0.67
|
Total borrowings
|
3,835.8
|
12.4
|
1.29
|
|
4,009.7
|
12.7
|
1.27
|
|
4,147.9
|
6.4
|
0.61
|
Notes and
debentures
|
904.4
|
7.6
|
3.36
|
|
908.9
|
7.5
|
3.29
|
|
1,045.0
|
8.0
|
3.08
|
Total funding liabilities
|
37,618.7
|
$
58.3
|
0.62%
|
|
36,983.6
|
$
54.6
|
0.59%
|
|
34,966.3
|
$
39.5
|
0.45%
|
Other
liabilities
|
645.9
|
|
|
|
550.6
|
|
|
|
617.4
|
|
|
Total liabilities
|
38,264.6
|
|
|
|
37,534.2
|
|
|
|
35,583.7
|
|
|
Stockholders'
equity
|
5,774.0
|
|
|
|
5,722.2
|
|
|
|
5,039.3
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 44,038.6
|
|
|
|
$ 43,256.4
|
|
|
|
$ 40,623.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$304.1
|
3.04%
|
|
|
$295.8
|
3.01%
|
|
|
$
255.2
|
2.76%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.07%
|
|
|
|
3.04%
|
|
|
|
2.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $11.8 million, $11.2 million and $8.4
million for the three months ended December 31, 2017,
|
September 30, 2017 and
December 31, 2016, respectively.
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017
|
|
December 31,
2016
|
Twelve months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
358.3
|
$
3.7
|
1.04%
|
|
$
328.7
|
$
1.5
|
0.45%
|
Securities
(1)
|
6,785.0
|
181.3
|
2.67
|
|
6,786.7
|
158.8
|
2.34
|
Loans:
|
|
|
|
|
|
|
|
Commercial
real estate
|
10,961.2
|
405.7
|
3.70
|
|
10,013.3
|
344.6
|
3.44
|
Commercial and
industrial
|
8,278.6
|
313.9
|
3.79
|
|
7,821.8
|
268.8
|
3.44
|
Equipment
financing
|
3,264.3
|
152.1
|
4.66
|
|
2,972.3
|
130.9
|
4.40
|
Residential
mortgage
|
6,653.0
|
208.4
|
3.13
|
|
5,824.1
|
181.5
|
3.12
|
Home equity
and other consumer
|
2,107.9
|
80.0
|
3.80
|
|
2,163.8
|
73.5
|
3.40
|
Total loans
|
31,265.0
|
1,160.1
|
3.71
|
|
28,795.3
|
999.3
|
3.47
|
Total earning assets
|
38,408.3
|
$ 1,345.1
|
3.50%
|
|
35,910.7
|
$
1,159.6
|
3.23%
|
Other
assets
|
4,173.3
|
|
|
|
3,873.6
|
|
|
Total assets
|
$ 42,581.6
|
|
|
|
$ 39,784.3
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
7,329.3
|
$
-
|
- %
|
|
$
6,236.1
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
and money market
|
19,486.7
|
80.1
|
0.41
|
|
18,258.2
|
53.0
|
0.29
|
Time
|
4,915.7
|
50.6
|
1.03
|
|
4,760.4
|
47.9
|
1.01
|
Total deposits
|
31,731.7
|
130.7
|
0.41
|
|
29,254.7
|
100.9
|
0.34
|
Borrowings:
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,677.5
|
31.5
|
1.17
|
|
3,093.7
|
19.2
|
0.62
|
Federal funds
purchased
|
643.5
|
7.1
|
1.11
|
|
568.1
|
2.9
|
0.50
|
Customer
repurchase agreements
|
311.0
|
0.6
|
0.19
|
|
337.2
|
0.7
|
0.19
|
Other
borrowings
|
132.0
|
2.1
|
1.60
|
|
2.8
|
-
|
0.66
|
Total borrowings
|
3,764.0
|
41.3
|
1.10
|
|
4,001.8
|
22.8
|
0.57
|
Notes and
debentures
|
921.3
|
29.9
|
3.25
|
|
1,048.5
|
31.4
|
3.00
|
Total funding liabilities
|
36,417.0
|
$
201.9
|
0.55%
|
|
34,305.0
|
$
155.1
|
0.45%
|
Other
liabilities
|
573.0
|
|
|
|
619.9
|
|
|
Total liabilities
|
36,990.0
|
|
|
|
34,924.9
|
|
|
Stockholders'
equity
|
5,591.6
|
|
|
|
4,859.4
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 42,581.6
|
|
|
|
$ 39,784.3
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (2)
|
|
$ 1,143.2
|
2.95%
|
|
|
$
1,004.5
|
2.78%
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.98%
|
|
|
|
2.80%
|
|
|
|
|
|
|
|
|
(1) Average balances
and yields for securities are based on amortized cost.
|
|
|
(2) The fully taxable
equivalent adjustment was $42.7 million and $32.3 million for the
twelve months ended
|
December 31, 2017 and
2016, respectively.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans acquired in a
business combination are initially recorded at fair value with no
carryover of an acquired entity's previous
|
established allowance
for loan losses. Accordingly, selected asset quality metrics have
been highlighted to distinguish between
|
the 'originated'
portfolio and the 'acquired' portfolio.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
23.7
|
$
|
36.7
|
$
|
42.9
|
$
|
23.4
|
$
|
22.3
|
|
Commercial and
industrial
|
|
32.6
|
|
34.9
|
|
40.2
|
|
47.4
|
|
41.5
|
|
Equipment
financing
|
|
44.3
|
|
54.1
|
|
48.2
|
|
47.4
|
|
39.4
|
|
Total
|
|
100.6
|
|
125.7
|
|
131.3
|
|
118.2
|
|
103.2
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
32.7
|
|
33.8
|
|
30.8
|
|
26.3
|
|
27.4
|
|
Home
equity
|
|
15.4
|
|
14.8
|
|
15.8
|
|
15.2
|
|
17.4
|
|
Other
consumer
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total
|
|
48.1
|
|
48.6
|
|
46.6
|
|
41.5
|
|
44.8
|
|
Total originated non-performing loans (1)
|
|
148.7
|
|
174.3
|
|
177.9
|
|
159.7
|
|
148.0
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
7.6
|
|
4.7
|
|
6.7
|
|
10.9
|
|
8.1
|
|
Commercial
|
|
9.3
|
|
6.3
|
|
4.3
|
|
4.1
|
|
4.0
|
|
Total REO
|
|
16.9
|
|
11.0
|
|
11.0
|
|
15.0
|
|
12.1
|
|
Repossessed
assets
|
|
2.5
|
|
5.4
|
|
9.2
|
|
8.2
|
|
7.2
|
|
Total non-performing assets
|
$
|
168.1
|
$
|
190.7
|
$
|
198.1
|
$
|
182.9
|
$
|
167.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount)
|
$
|
29.7
|
$
|
26.6
|
$
|
26.4
|
$
|
22.1
|
$
|
24.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.49
|
%
|
0.59
|
%
|
0.60
|
%
|
0.55
|
%
|
0.51
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
|
0.56
|
|
0.64
|
|
0.67
|
|
0.63
|
|
0.57
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
4.81
|
|
5.60
|
|
5.65
|
|
5.57
|
|
5.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $3.1 million at December 31, 2017,
$4.0 million at September 30, 2017,
|
$4.2 million at June 30,
2017, $4.4 million at March 31, 2017 and $13.1 million at December
31, 2016.
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
|
229.2
|
$
|
227.9
|
$
|
225.0
|
$
|
223.0
|
$
|
219.0
|
|
Charge-offs
|
|
(6.4)
|
|
(5.8)
|
|
(6.7)
|
|
(4.6)
|
|
(4.7)
|
|
Recoveries
|
|
1.2
|
|
1.5
|
|
1.8
|
|
2.2
|
|
1.0
|
|
Net loan charge-offs
|
|
(5.2)
|
|
(4.3)
|
|
(4.9)
|
|
(2.4)
|
|
(3.7)
|
|
Provision for
loan losses
|
|
6.8
|
|
5.6
|
|
7.8
|
|
4.4
|
|
7.7
|
|
Balance at end of period
|
|
230.8
|
|
229.2
|
|
227.9
|
|
225.0
|
|
223.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
4.2
|
|
3.7
|
|
6.3
|
|
6.3
|
|
7.3
|
|
Charge-offs
|
|
(1.5)
|
|
(1.0)
|
|
(1.9)
|
|
-
|
|
(1.0)
|
|
Recoveries
|
|
0.2
|
|
0.1
|
|
-
|
|
-
|
|
-
|
|
Net loan charge-offs
|
|
(1.3)
|
|
(0.9)
|
|
(1.9)
|
|
-
|
|
(1.0)
|
|
Provision for
loan losses
|
|
0.7
|
|
1.4
|
|
(0.7)
|
|
-
|
|
-
|
|
Balance at end of period
|
|
3.6
|
|
4.2
|
|
3.7
|
|
6.3
|
|
6.3
|
|
Total allowance for loan losses
|
$
|
234.4
|
$
|
233.4
|
$
|
231.6
|
$
|
231.3
|
$
|
229.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated commercial
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
0.93
|
%
|
0.94
|
%
|
0.94
|
%
|
0.94
|
%
|
0.95
|
%
|
Originated retail
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated retail loans
|
|
0.35
|
|
0.35
|
|
0.35
|
|
0.36
|
|
0.30
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
|
|
0.77
|
|
0.77
|
|
0.77
|
|
0.77
|
|
0.77
|
|
Originated non-performing loans
|
|
155.2
|
|
131.6
|
|
128.1
|
|
140.9
|
|
150.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
1.5
|
$
|
1.5
|
$
|
1.2
|
$
|
-
|
$
|
0.9
|
|
Commercial and
industrial
|
|
2.1
|
|
2.0
|
|
1.8
|
|
0.8
|
|
1.1
|
|
Equipment
financing
|
|
2.0
|
|
0.5
|
|
2.7
|
|
0.5
|
|
1.3
|
|
Total
|
|
5.6
|
|
4.0
|
|
5.7
|
|
1.3
|
|
3.3
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
0.2
|
|
0.1
|
|
0.1
|
|
0.1
|
|
-
|
|
Home
equity
|
|
0.5
|
|
0.9
|
|
0.7
|
|
1.1
|
|
1.3
|
|
Other
consumer
|
|
0.2
|
|
0.2
|
|
0.3
|
|
(0.1)
|
|
0.1
|
|
Total
|
|
0.9
|
|
1.2
|
|
1.1
|
|
1.1
|
|
1.4
|
|
Total net loan charge-offs
|
$
|
6.5
|
$
|
5.2
|
$
|
6.8
|
$
|
2.4
|
$
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.08
|
%
|
0.06
|
%
|
0.09
|
%
|
0.03
|
%
|
0.06
|
%
|
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)
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
NON-INTEREST EXPENSE AND EFFICIENCY RATIO
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Total non-interest
expense (1)
|
|
$
239.7
|
|
$
237.1
|
|
$
257.3
|
|
$
226.1
|
|
$
217.2
|
|
$
960.3
|
|
$
868.8
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(1.6)
|
|
(3.0)
|
|
(24.8)
|
|
(1.2)
|
|
(0.9)
|
|
(30.6)
|
|
(4.0)
|
Acquisition
integration and other costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.7)
|
|
-
|
|
(0.7)
|
Total
|
|
(1.6)
|
|
(3.0)
|
|
(24.8)
|
|
(1.2)
|
|
(1.6)
|
|
(30.6)
|
|
(4.7)
|
Operating non-interest expense
|
|
238.1
|
|
234.1
|
|
232.5
|
|
224.9
|
|
215.6
|
|
929.7
|
|
864.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(8.9)
|
|
(8.8)
|
|
(8.7)
|
|
(8.8)
|
|
(8.3)
|
|
(35.2)
|
|
(36.3)
|
Amortization of other
acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(7.9)
|
|
(7.9)
|
|
(7.9)
|
|
(6.3)
|
|
(6.2)
|
|
(30.0)
|
|
(23.6)
|
Other (2)
|
|
(1.4)
|
|
(1.5)
|
|
(0.4)
|
|
(1.8)
|
|
(0.6)
|
|
(5.1)
|
|
(5.7)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
219.9
|
|
$
215.9
|
|
$
215.5
|
|
$
208.0
|
|
$
200.5
|
|
$
859.4
|
|
$
798.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
304.1
|
|
$
295.8
|
|
$
285.2
|
|
$
258.1
|
|
$
255.2
|
|
$ 1,143.2
|
|
$1,004.5
|
Total non-interest
income
|
|
87.3
|
|
89.3
|
|
91.6
|
|
84.7
|
|
84.2
|
|
352.9
|
|
342.7
|
Total revenues
|
|
391.4
|
|
385.1
|
|
376.8
|
|
342.8
|
|
339.4
|
|
1,496.1
|
|
1,347.2
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net security
(gains) losses
|
|
9.8
|
|
-
|
|
(0.1)
|
|
15.7
|
|
6.0
|
|
25.4
|
|
5.9
|
Operating
lease expense
|
|
(8.9)
|
|
(8.8)
|
|
(8.7)
|
|
(8.8)
|
|
(8.3)
|
|
(35.2)
|
|
(36.3)
|
BOLI FTE
adjustment
|
|
0.8
|
|
1.2
|
|
1.0
|
|
0.4
|
|
0.7
|
|
3.4
|
|
2.8
|
Other
(3)
|
|
(1.3)
|
|
(0.2)
|
|
-
|
|
0.2
|
|
0.2
|
|
(1.3)
|
|
(0.8)
|
Total revenues for efficiency ratio
|
|
$
391.8
|
|
$
377.3
|
|
$
369.0
|
|
$
350.3
|
|
$
338.0
|
|
$ 1,488.4
|
|
$1,318.8
|
Efficiency ratio
|
|
56.1%
|
|
57.3%
|
|
58.4%
|
|
59.4%
|
|
59.3%
|
|
57.7%
|
|
60.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The sum of the
quarterly amounts may not equal the twelve months amounts due to
rounding.
|
|
|
|
|
(2) Items
classified as "other" and deducted from non-interest expense for
purposes of calculating the efficiency ratio include
|
certain franchise
taxes and real estate owned expenses.
|
|
|
|
|
|
|
|
|
|
|
(3) Items
classified as "other" and (deducted from) added to 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
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in millions,
except per common share data)
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income available
to common shareholders
|
|
$
102.7
|
|
$
87.3
|
|
$
65.8
|
|
$
67.3
|
|
$
74.1
|
|
$
323.1
|
|
$
279.2
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
1.6
|
|
3.0
|
|
24.8
|
|
1.2
|
|
0.9
|
|
30.6
|
|
4.0
|
Security
losses associated with tax reform (1)
|
10.0
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10.0
|
|
-
|
Acquisition
integration and other costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.7
|
|
-
|
|
0.7
|
Total pre-tax adjustments
|
|
11.6
|
|
3.0
|
|
24.8
|
|
1.2
|
|
1.6
|
|
40.6
|
|
4.7
|
Tax effect (2),
(3)
|
|
(9.8)
|
|
(1.0)
|
|
(8.0)
|
|
(0.4)
|
|
(0.6)
|
|
(17.9)
|
|
(1.6)
|
Total adjustments, net of tax (3)
|
|
1.8
|
|
2.0
|
|
16.8
|
|
0.8
|
|
1.0
|
|
22.7
|
|
3.1
|
Operating earnings(3)
|
|
$
104.5
|
|
$
89.3
|
|
$
82.6
|
|
$
68.1
|
|
$
75.1
|
|
$
345.8
|
|
$
282.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS, as
reported
|
|
$
0.30
|
|
$
0.26
|
|
$
0.19
|
|
$
0.22
|
|
$
0.24
|
|
$
0.97
|
|
$
0.92
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses (3)
|
|
0.01
|
|
-
|
|
0.05
|
|
-
|
|
-
|
|
0.07
|
|
0.01
|
Security
losses associated with tax reform
|
|
0.02
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.02
|
|
-
|
Tax benefit
associated with tax reform
|
|
(0.02)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.02)
|
|
-
|
Total adjustments per common share (3)
|
|
0.01
|
|
-
|
|
0.05
|
|
-
|
|
-
|
|
0.07
|
|
0.01
|
Operating EPS(3)
|
|
$
0.31
|
|
$
0.26
|
|
$
0.24
|
|
$
0.22
|
|
$
0.24
|
|
$
1.04
|
|
$
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$44,039
|
|
$43,256
|
|
$42,666
|
|
$40,317
|
|
$40,623
|
|
$42,582
|
|
$39,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
0.95%
|
|
0.83%
|
|
0.77%
|
|
0.68%
|
|
0.74%
|
|
0.81%
|
|
0.71%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Security losses
incurred as a tax planning strategy in response to tax reform
enacted on December 22, 2017 are considered
non-operating.
|
(2) Includes a $6.5
million benefit realized in connection with tax reform enacted on
December 22, 2017.
|
|
|
|
|
(3) The sum of the
quarterly amounts may not equal the twelve months amounts due to
changes in income tax rate, rounding
|
|
and/or changes in
common share count.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating
earnings
|
|
$
104.5
|
|
$
89.3
|
|
$
82.6
|
|
$
68.1
|
|
$
75.1
|
|
$
345.8
|
|
$
282.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
5,774
|
|
$
5,722
|
|
$
5,696
|
|
$
5,166
|
|
$
5,039
|
|
$
5,592
|
|
$
4,859
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
165
|
|
244
|
|
41
|
Average common
equity
|
|
5,530
|
|
5,478
|
|
5,452
|
|
4,922
|
|
4,874
|
|
5,348
|
|
4,818
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,564
|
|
2,524
|
|
2,415
|
|
2,134
|
|
2,094
|
|
2,410
|
|
2,083
|
Average tangible
common equity
|
|
$
2,966
|
|
$
2,954
|
|
$
3,037
|
|
$
2,788
|
|
$
2,780
|
|
$
2,938
|
|
$
2,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
14.1%
|
|
12.1%
|
|
10.9%
|
|
9.8%
|
|
10.8%
|
|
11.8%
|
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Common dividends
paid
|
|
$
58.6
|
|
$
58.3
|
|
$
58.3
|
|
$
52.7
|
|
$
51.7
|
|
$
227.9
|
|
$
205.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
$
104.5
|
|
$
89.3
|
|
$
82.6
|
|
$
68.1
|
|
$
75.1
|
|
$
345.8
|
|
$
282.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
56.1%
|
|
65.3%
|
|
70.6%
|
|
77.3%
|
|
68.8%
|
|
65.9%
|
|
72.9%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
Total stockholders'
equity
|
|
$
5,820
|
|
$
5,746
|
|
$
5,704
|
|
$
5,195
|
|
$
5,142
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Common
equity
|
|
5,576
|
|
5,502
|
|
5,460
|
|
4,951
|
|
4,898
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,560
|
|
2,568
|
|
2,426
|
|
2,136
|
|
2,142
|
Tangible common
equity
|
|
$
3,016
|
|
$
2,934
|
|
$
3,034
|
|
$
2,815
|
|
$
2,756
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$44,453
|
|
$43,998
|
|
$43,023
|
|
$40,230
|
|
$40,610
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,560
|
|
2,568
|
|
2,426
|
|
2,136
|
|
2,142
|
Tangible
assets
|
|
$41,893
|
|
$41,430
|
|
$40,597
|
|
$38,094
|
|
$38,468
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.2%
|
|
7.1%
|
|
7.5%
|
|
7.4%
|
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
(in millions, except
per common share data)
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
Tangible common
equity
|
|
$
3,016
|
|
$
2,934
|
|
$
3,034
|
|
$
2,815
|
|
$
2,756
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
435.64
|
|
433.59
|
|
433.34
|
|
406.43
|
|
405.00
|
Less: Shares
classified as treasury shares
|
|
89.04
|
|
89.04
|
|
89.04
|
|
89.04
|
|
89.06
|
Unallocated ESOP shares
|
|
6.62
|
|
6.71
|
|
6.79
|
|
6.88
|
|
6.97
|
Common
shares
|
|
339.98
|
|
337.84
|
|
337.51
|
|
310.51
|
|
308.97
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
8.87
|
|
$
8.68
|
|
$
8.99
|
|
$
9.07
|
|
$
8.92
|
View original
content:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-fourth-quarter-net-income-of-1062-million-or-030-per-common-share-operating-earnings-of-031-per-common-share-300584683.html
SOURCE People's United Financial, Inc.