BRIDGEPORT, Conn., Jan. 16, 2020 /PRNewswire/ -- People's United
Financial, Inc. (NASDAQ: PBCT) today reported results for the
fourth quarter and full year 2019. These results along with
comparison periods are summarized below:
|
($ in millions,
except per common share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
Dec. 31,
2019
|
|
Sep. 30,
2019
|
|
Dec. 31,
2018
|
|
|
Dec. 31,
2019
|
|
Dec. 31,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
137.5
|
|
$
135.1
|
|
$
132.9
|
|
|
$
520.4
|
|
$
468.1
|
Net income
available
|
|
134.0
|
|
131.6
|
|
129.4
|
|
|
506.3
|
|
454.0
|
|
to common
shareholders
|
|
|
|
|
|
|
|
Per common
share
|
|
0.31
|
|
0.33
|
|
0.35
|
|
|
1.27
|
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings1
|
|
158.8
|
|
135.5
|
|
134.2
|
|
|
552.1
|
|
461.4
|
|
Per common
share
|
|
0.37
|
|
0.34
|
|
0.36
|
|
|
1.39
|
|
1.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
382.7
|
|
$
348.7
|
|
$
332.6
|
|
|
$
1,412.3
|
|
$
1,236.0
|
|
Net interest
margin
|
|
3.14%
|
|
3.12%
|
|
3.17%
|
|
|
3.14%
|
|
3.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
124.2
|
|
106.0
|
|
88.7
|
|
|
431.1
|
|
366.4
|
Operating
non-interest income1
|
116.6
|
|
106.0
|
|
98.7
|
|
|
423.5
|
|
376.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
$
325.7
|
|
$
281.4
|
|
$
262.7
|
|
|
$
1,162.7
|
|
$
996.1
|
Operating
non-interest expense1
|
286.6
|
|
276.4
|
|
254.7
|
|
|
1,097.1
|
|
984.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
53.7%
|
|
56.8%
|
|
55.1%
|
|
|
55.8%
|
|
57.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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Average
balances
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
42,006
|
|
$
38,317
|
|
$
35,016
|
|
|
$
38,419
|
|
$
32,854
|
Deposits
|
|
42,195
|
|
38,657
|
|
35,959
|
|
|
39,143
|
|
33,601
|
|
|
|
|
|
|
|
|
|
|
|
|
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Period-end
balances
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
43,596
|
|
38,781
|
|
35,241
|
|
|
|
|
|
Deposits
|
|
43,590
|
|
38,574
|
|
36,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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"We are very pleased with the Company's financial and operating
performance in 2019," said Jack
Barnes, Chairman and Chief Executive Officer. "It was
another noteworthy year for People's United as we acquired two
banks and a specialty finance company, enhanced our suite of
banking technology and further strengthened core capabilities. As a
result, we continued to build the earnings power of the Company as
evidenced by a 20 percent increase in full year operating earnings
from a year ago and an operating return on average tangible common
equity of 14.7 percent. In addition, operating earnings per common
share of $1.39 increased for the
tenth consecutive year. While we have almost tripled total assets
to nearly $60 billion over the last
ten years, we have remained true to our roots of delivering
superior service at a local level, maintaining exceptional asset
quality and supporting our communities. As we start a new decade
already filled with economic and competitive uncertainties, we are
confident our long-term approach to managing the business will
enable us to generate value for customers and shareholders
regardless of the operating environment. "
"We concluded 2019 with a strong financial performance as
demonstrated by another record quarter of earnings," stated
David Rosato, Senior Executive Vice
President and Chief Financial Officer. "Operating earnings of
$158.8 million increased 17 percent
linked-quarter and reflected the acquisition of United, improved
net interest margin and positive operating leverage. The fourth
quarter margin of 3.14 percent benefited from continued remixing of
the loan portfolio, disciplined management of deposit costs and the
net effect of purchase accounting adjustments related to the United
transaction. Excluding these purchase accounting adjustments, the
margin was 3.09 percent. On an organic basis, period-end loan
balances were essentially flat compared to September 30th, while period-end
deposits declined one percent. Commercial loan growth of
$314 million was driven by solid
results in commercial real estate, equipment finance and our
specialized industry verticals within C&I. These increases were
offset by a $343 million decline in
retail loans mostly due to our planned reduction of residential
mortgages as we continue to remix the balance sheet with a focus on
higher yielding portfolios. The decline in period-end deposits of
$287 million was primarily
attributable to lower brokered deposit balances."
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|
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As of and for
the Three Months Ended
|
|
|
|
Dec. 31,
2019
|
|
Sep. 30,
2019
|
|
Dec. 31,
2018
|
|
|
|
|
|
|
|
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Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
|
0.06%
|
|
0.06%
|
|
0.09%
|
to
average total loans
|
|
|
|
Originated
non-performing loans
|
|
0.48%
|
|
0.48%
|
|
0.55%
|
as a
percentage of originated loans
|
|
|
|
|
|
|
|
|
|
|
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Returns
|
|
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|
Return on average
assets1
|
|
0.98%
|
|
1.05%
|
|
1.11%
|
Return on average
tangible common equity1
|
|
12.8%
|
|
14.0%
|
|
14.9%
|
|
|
|
|
|
|
|
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|
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|
|
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Capital
Ratios
|
|
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|
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People's United
Financial, Inc.
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|
|
|
|
|
|
Tangible common
equity / tangible assets
|
|
8.0%
|
|
7.8%
|
|
7.6%
|
Tier 1
leverage
|
|
9.2%
|
|
8.7%
|
|
8.7%
|
Common equity tier
1
|
|
10.2%
|
|
10.1%
|
|
10.3%
|
Tier 1
risk-based
|
|
10.7%
|
|
10.7%
|
|
10.9%
|
Total
risk-based
|
|
12.0%
|
|
12.0%
|
|
12.5%
|
|
|
|
|
|
|
|
|
People's United Bank,
N.A.
|
|
|
|
|
|
|
Tier 1
leverage
|
|
|
9.3%
|
|
8.8%
|
|
9.0%
|
Common equity tier
1
|
|
|
10.8%
|
|
10.8%
|
|
11.4%
|
Tier 1
risk-based
|
|
|
10.8%
|
|
10.8%
|
|
11.4%
|
Total
risk-based
|
|
|
12.1%
|
|
12.2%
|
|
13.2%
|
|
|
|
|
|
|
|
|
1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
The Board of Directors declared a $0.1775 per common share quarterly dividend
payable February 15, 2020 to
shareholders of record on February 1,
2020. Based on the closing stock price on January 15, 2020, the dividend yield on People's
United Financial common stock is 4.4 percent.
People's United Bank, N.A. is a subsidiary of People's United
Financial, Inc., a diversified, community-focused financial
services company headquartered in the Northeast with approximately
$59 billion in assets. Founded in
1842, People's United Bank offers commercial and retail banking
through a network of over 400 retail locations in Connecticut, New
York, Massachusetts,
Vermont, New Hampshire and Maine, as well as wealth management and
insurance solutions. The company also provides specialized
commercial services to customers nationwide.
4Q 2019 Financial Highlights
Summary
- Net income totaled $137.5
million, or $0.31 per common
share.
-
- Net income available to common shareholders totaled
$134.0 million.
- Operating earnings totaled $158.8
million, or $0.37 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $382.7
million in 4Q19 compared to $348.7
million in 3Q19.
- Net interest margin increased two basis points from 3Q19 to
3.14% reflecting:
-
- Lower rates on deposits (increase of four basis points).
- Lower rates on borrowings (increase of two basis points).
- Lower yields on the loan portfolio (decrease of four basis
points).
- Provision for loan losses totaled $7.3
million.
-
- Net loan charge-offs totaled $6.7
million.
- Net loan charge-off ratio of 0.06% in 4Q19.
- Non-interest income totaled $124.2
million in 4Q19 compared to $106.0
million in 3Q19.
-
- Customer interest rate swap income increased $3.3 million.
- Bank service charges increased $1.9
million.
- Commercial banking lending fees increased $1.1 million.
- Insurance revenue decreased $2.8
million.
- Included in other non-interest income is a $7.6 million net gain on the sale of branches
(see Non-GAAP Financial Measures and Reconciliation to GAAP).
- At December 31, 2019, assets
under discretionary management totaled $9.2
billion.
- Non-interest expense totaled $325.7
million in 4Q19 compared to $281.4
million in 3Q19.
-
- Operating non-interest expense totaled $286.6 million in 4Q19 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $7.5 million and $0.8
million of merger-related expenses in 4Q19 and 3Q19,
respectively, increased $6.6 million,
primarily reflecting additional employees resulting from the United
Financial acquisition.
- Professional and outside services expense, excluding
$5.6 million and $3.7 million of merger-related expenses in 4Q19
and 3Q19, respectively, increased $4.0
million.
- Regulatory assessment expense increased $2.0 million.
- Included in other non-interest expense in 4Q19 is a
$16.5 million charge relating to the
write-off of an intangible asset and $8.9
million of merger-related expenses (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- The efficiency ratio was 53.7% for 4Q19 compared to 56.8% for
3Q19 and 55.1% for 4Q18 (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 21.0% for 4Q19 and 20.2% for
the full-year of 2019, compared to 18.8% for the full-year of
2018.
-
- The rate in 2018 reflects a $9.2
million benefit recognized in connection with tax
reform.
Commercial Banking
- Commercial loans totaled $30.7
billion at December 31, 2019,
an increase of $3.2 billion from
September 30, 2019.
-
- Organic growth of $314
million.
- The equipment financing portfolio increased $175 million.
- The mortgage warehouse portfolio decreased $180 million.
- The New York multifamily
portfolio decreased $55 million.
- Average commercial loans totaled $29.4
billion in 4Q19, an increase of $2.5
billion from 3Q19.
-
- The average equipment financing portfolio increased
$144 million.
- The average mortgage warehouse portfolio increased $138 million.
- The average New York
multifamily portfolio decreased $73
million.
- Commercial deposits totaled $16.6
billion at December 31, 2019
compared to $14.9 billion at
September 30, 2019.
- The ratio of originated non-performing commercial loans to
originated commercial loans was 0.44% at both December 31, 2019 and September 30, 2019.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $119.2
million at December 31, 2019
compared to $118.3 million at
September 30, 2019.
- For the originated commercial loan portfolio, the allowance for
loan losses as a percentage of loans was 0.89% at both December 31, 2019 and September 30, 2019.
- The originated commercial allowance for loan losses represented
201% of originated non-performing commercial loans at December 31, 2019 compared to 205% at
September 30, 2019.
Retail Banking
- Residential mortgage loans totaled $10.3
billion at December 31, 2019,
an increase of $1.0 billion from
September 30, 2019.
-
- Average residential mortgage loans totaled $10.0 billion in 4Q19, an increase of
$626 million from 3Q19.
- Home equity loans totaled $2.4
billion at December 31, 2019,
an increase of $450 million from
September 30, 2019.
-
- Average home equity loans totaled $2.3
billion in 4Q19, an increase of $279
million from 3Q19.
- Retail deposits totaled $27.0
billion at December 31, 2019
compared to $23.7 billion at
September 30, 2019.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 0.55% at both
December 31, 2019 and September 30, 2019.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.78% at December 31, 2019 compared to 0.85% at
September 30, 2019.
- For the originated retail loan portfolio, the allowance for
loan losses as a percentage of loans was 0.35% at both December 31, 2019 and September 30, 2019.
- The originated retail allowance for loan losses represented 59%
of originated non-performing retail loans at December 31, 2019 compared to 57% at September 30, 2019.
Conference Call
On January 16, 2020, 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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People's United
Financial completed its acquisition of United Financial Bancorp,
Inc. effective November 1, 2019.
Accordingly,
|
United Financial's
results of operations are included beginning with the effective
date, and prior period results have not been
|
restated to include
United Financial.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in millions,
except per common share data)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
Earnings
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
390.3
|
$
|
356.0
|
$
|
355.4
|
$
|
340.0
|
$
|
339.5
|
|
Net interest
income
|
|
382.7
|
|
348.7
|
|
348.1
|
|
332.8
|
|
332.6
|
|
Provision for
loan losses
|
|
7.3
|
|
7.8
|
|
7.6
|
|
5.6
|
|
9.9
|
|
Non-interest
income (1)
|
|
124.2
|
|
106.0
|
|
106.3
|
|
94.6
|
|
88.7
|
|
Non-interest
expense (1)
|
|
325.7
|
|
281.4
|
|
278.4
|
|
277.2
|
|
262.7
|
|
Income before
income tax expense
|
|
173.9
|
|
165.5
|
|
168.4
|
|
144.6
|
|
148.7
|
|
Net
income
|
|
137.5
|
|
135.1
|
|
133.2
|
|
114.6
|
|
132.9
|
|
Net income
available to common shareholders (1)
|
|
134.0
|
|
131.6
|
|
129.7
|
|
111.1
|
|
129.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (2)
|
|
3.14
|
%
|
3.12
|
%
|
3.12
|
%
|
3.20
|
%
|
3.17
|
%
|
Return on
average assets (1), (2)
|
|
0.98
|
|
1.05
|
|
1.04
|
|
0.96
|
|
1.11
|
|
Return on
average common equity (2)
|
|
7.2
|
|
7.7
|
|
7.7
|
|
7.0
|
|
8.3
|
|
Return on
average tangible common equity (1), (2)
|
|
12.8
|
|
14.0
|
|
14.1
|
|
13.0
|
|
14.9
|
|
Efficiency
ratio (1)
|
|
53.7
|
|
56.8
|
|
55.8
|
|
57.3
|
|
55.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.31
|
$
|
0.34
|
$
|
0.33
|
$
|
0.30
|
$
|
0.35
|
|
Diluted (1)
|
|
0.31
|
|
0.33
|
|
0.33
|
|
0.30
|
|
0.35
|
|
Dividends paid
per common share
|
|
0.1775
|
|
0.1775
|
|
0.1775
|
|
0.1750
|
|
0.1750
|
|
Common
dividend payout ratio (1)
|
|
52.2
|
%
|
53.1
|
%
|
53.8
|
%
|
58.6
|
%
|
50.3
|
%
|
Book value per
common share (end of period)
|
$
|
17.60
|
$
|
17.54
|
$
|
17.34
|
$
|
17.13
|
$
|
16.95
|
|
Tangible book
value per common share (end of period) (1)
|
10.12
|
|
9.74
|
|
9.51
|
|
9.35
|
|
9.23
|
|
Stock
price:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
17.22
|
|
17.10
|
|
17.66
|
|
18.03
|
|
17.46
|
|
Low
|
|
14.73
|
|
13.81
|
|
15.24
|
|
14.25
|
|
13.66
|
|
Close (end of period)
|
|
16.90
|
|
15.64
|
|
16.78
|
|
16.44
|
|
14.43
|
|
Common shares
(end of period) (in millions)
|
|
437.74
|
|
392.57
|
|
392.24
|
|
372.18
|
|
371.02
|
|
Weighted
average diluted common shares (in millions)
|
424.98
|
|
394.45
|
|
394.57
|
|
374.09
|
|
372.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
|
|
|
|
(2)
Annualized.
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial completed its acquisition of United Financial Bancorp,
Inc. effective November 1, 2019.
|
Accordingly, United
Financial's results of operations are included beginning with the
effective date, and
|
prior period results
have not been restated to include United Financial.
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
|
(dollars in millions,
except per common share data)
|
|
2019
|
|
2018
|
|
|
Earnings
Data:
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
1,441.7
|
$
|
1,262.4
|
|
|
Net interest
income
|
|
1,412.3
|
|
1,236.0
|
|
|
Provision for
loan losses
|
|
28.3
|
|
30.0
|
|
|
Non-interest
income (1)
|
|
431.1
|
|
366.4
|
|
|
Non-interest
expense (1)
|
|
1,162.7
|
|
996.1
|
|
|
Income before
income tax expense
|
|
652.4
|
|
576.3
|
|
|
Net
income
|
|
520.4
|
|
468.1
|
|
|
Net income
available to common shareholders (1)
|
|
506.3
|
|
454.0
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
Net interest
margin
|
|
3.14
|
%
|
3.12
|
%
|
|
Return on
average assets (1)
|
|
1.01
|
|
1.04
|
|
|
Return on
average common equity
|
|
7.4
|
|
7.8
|
|
|
Return on
average tangible common equity (1)
|
|
13.4
|
|
14.3
|
|
|
Efficiency
ratio (1)
|
|
55.8
|
|
57.4
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
Basic
|
$
|
1.28
|
$
|
1.30
|
|
|
Diluted (1)
|
|
1.27
|
|
1.29
|
|
|
Dividends paid
per common share
|
|
0.7075
|
|
0.6975
|
|
|
Common
dividend payout ratio (1)
|
|
54.3
|
%
|
53.7
|
%
|
|
Book value per
common share (end of period)
|
$
|
17.60
|
$
|
16.95
|
|
|
Tangible book
value per common share (end of period) (1)
|
|
10.12
|
|
9.23
|
|
|
Stock
price:
|
|
|
|
|
|
|
High
|
|
18.03
|
|
20.26
|
|
|
Low
|
|
13.81
|
|
13.66
|
|
|
Close (end of period)
|
|
16.90
|
|
14.43
|
|
|
Common shares
(end of period) (in millions)
|
|
437.74
|
|
371.02
|
|
|
Weighted
average diluted common shares (in millions)
|
|
397.15
|
|
351.66
|
|
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial completed its acquisition of United Financial Bancorp,
Inc. effective November 1, 2019.
Accordingly,
|
United Financial's
results of operations are included beginning with the effective
date, and prior period results have not been
|
restated to include
United Financial.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
58,590
|
$
|
52,072
|
$
|
51,622
|
$
|
48,092
|
$
|
47,877
|
|
Loans
|
|
43,596
|
|
38,781
|
|
38,557
|
|
35,515
|
|
35,241
|
|
Securities
|
|
7,790
|
|
7,135
|
|
7,086
|
|
7,176
|
|
7,233
|
|
Short-term investments
|
|
317
|
|
158
|
|
275
|
|
106
|
|
266
|
|
Allowance for loan losses
|
|
247
|
|
246
|
|
244
|
|
241
|
|
240
|
|
Goodwill and other acquisition-related intangible assets
|
3,275
|
|
3,065
|
|
3,073
|
|
2,897
|
|
2,866
|
|
Deposits
|
|
43,590
|
|
38,574
|
|
39,467
|
|
36,901
|
|
36,159
|
|
Borrowings
|
|
5,155
|
|
4,629
|
|
3,400
|
|
2,860
|
|
3,593
|
|
Notes and debentures
|
|
993
|
|
916
|
|
912
|
|
902
|
|
896
|
|
Stockholders' equity
|
|
7,947
|
|
7,131
|
|
7,046
|
|
6,621
|
|
6,534
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
45,243
|
|
39,779
|
|
39,026
|
|
36,466
|
|
35,910
|
|
People's United
Bank, N.A.
|
|
45,210
|
|
39,727
|
|
38,976
|
|
36,447
|
|
35,875
|
|
Non-performing assets (2)
|
|
180
|
|
182
|
|
179
|
|
167
|
|
186
|
|
Net loan charge-offs
|
|
6.7
|
|
5.8
|
|
4.5
|
|
5.1
|
|
7.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
42,006
|
$
|
38,317
|
$
|
38,229
|
$
|
35,046
|
$
|
35,016
|
|
Securities (3)
|
|
7,372
|
|
7,041
|
|
7,147
|
|
7,311
|
|
7,479
|
|
Short-term investments
|
|
294
|
|
219
|
|
214
|
|
203
|
|
292
|
|
Total earning assets
|
|
49,673
|
|
45,577
|
|
45,591
|
|
42,560
|
|
42,786
|
|
Total assets
|
|
56,130
|
|
51,524
|
|
51,088
|
|
47,800
|
|
47,721
|
|
Deposits
|
|
42,195
|
|
38,657
|
|
39,211
|
|
36,450
|
|
35,959
|
|
Borrowings
|
|
4,146
|
|
3,855
|
|
3,146
|
|
2,937
|
|
3,456
|
|
Notes and debentures
|
|
974
|
|
914
|
|
904
|
|
896
|
|
886
|
|
Total funding liabilities
|
|
47,314
|
|
43,427
|
|
43,261
|
|
40,284
|
|
40,302
|
|
Stockholders' equity
|
|
7,654
|
|
7,079
|
|
6,978
|
|
6,562
|
|
6,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
0.06
|
%
|
0.06
|
%
|
0.05
|
%
|
0.06
|
%
|
0.09
|
%
|
Non-performing assets to originated loans,
|
|
|
|
|
|
|
|
|
|
|
|
real estate owned and
repossessed assets (2)
|
|
0.55
|
|
0.56
|
|
0.56
|
|
0.54
|
|
0.61
|
|
Originated allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
(2)
|
|
0.75
|
|
0.75
|
|
0.76
|
|
0.76
|
|
0.77
|
|
Originated
non-performing loans (2)
|
|
156.4
|
|
156.0
|
|
146.0
|
|
157.0
|
|
140.9
|
|
Average stockholders' equity to average total assets
|
|
13.6
|
|
13.7
|
|
13.7
|
|
13.7
|
|
13.7
|
|
Stockholders' equity to total assets
|
|
13.6
|
|
13.7
|
|
13.6
|
|
13.8
|
|
13.6
|
|
Tangible common equity to tangible assets (4)
|
|
8.0
|
|
7.8
|
|
7.7
|
|
7.7
|
|
7.6
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.0
|
|
12.0
|
|
12.0
|
|
12.4
|
|
12.5
|
|
People's United
Bank, N.A.
|
|
12.1
|
|
12.2
|
|
12.4
|
|
12.9
|
|
13.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) December 31, 2019
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)
|
2019
|
2019
|
2019
|
2018
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
484.2
|
$
635.2
|
$
505.9
|
$
665.7
|
Short-term
investments
|
316.8
|
157.8
|
274.8
|
266.3
|
Securities:
|
|
|
|
|
Trading debt
securities, at fair value
|
7.1
|
9.3
|
9.3
|
8.4
|
Equity
securities, at fair value
|
8.2
|
7.8
|
8.5
|
8.1
|
Debt
securities available-for-sale, at fair value
|
3,564.3
|
2,978.7
|
2,971.2
|
3,121.0
|
Debt
securities held-to-maturity, at amortized cost
|
3,869.2
|
3,805.4
|
3,807.5
|
3,792.3
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
341.1
|
334.0
|
289.4
|
303.4
|
Total securities
|
7,789.9
|
7,135.2
|
7,085.9
|
7,233.2
|
Loans
held-for-sale
|
511.3
|
24.8
|
17.4
|
19.5
|
Loans:
|
|
|
|
|
Commercial
real estate
|
14,762.3
|
12,186.9
|
12,230.7
|
11,649.6
|
Commercial and
industrial
|
11,041.6
|
10,545.9
|
10,121.8
|
9,088.9
|
Equipment
financing
|
4,910.4
|
4,735.6
|
4,611.0
|
4,339.2
|
Total Commercial Portfolio
|
30,714.3
|
27,468.4
|
26,963.5
|
25,077.7
|
Residential
mortgage
|
10,318.1
|
9,308.7
|
9,532.6
|
8,154.2
|
Home equity
and other consumer
|
2,563.7
|
2,004.3
|
2,060.6
|
2,009.5
|
Total Retail Portfolio
|
12,881.8
|
11,313.0
|
11,593.2
|
10,163.7
|
Total loans
|
43,596.1
|
38,781.4
|
38,556.7
|
35,241.4
|
Less allowance
for loan losses
|
(246.6)
|
(246.0)
|
(244.0)
|
(240.4)
|
Total loans, net
|
43,349.5
|
38,535.4
|
38,312.7
|
35,001.0
|
Goodwill and other
acquisition-related intangible assets
|
3,274.6
|
3,064.9
|
3,072.9
|
2,865.7
|
Bank-owned life
insurance
|
705.0
|
505.6
|
504.4
|
467.0
|
Premises and
equipment, net
|
305.5
|
258.5
|
261.0
|
267.3
|
Other
assets
|
1,853.0
|
1,754.4
|
1,587.5
|
1,091.6
|
Total assets
|
$
58,589.8
|
$
52,071.8
|
$
51,622.5
|
$
47,877.3
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
9,803.7
|
$
9,129.3
|
$
8,747.2
|
$
8,543.0
|
Savings
|
4,987.7
|
4,616.6
|
4,847.4
|
4,116.5
|
Interest-bearing checking and money market
|
19,592.6
|
16,727.2
|
17,424.8
|
16,583.3
|
Time
|
9,205.5
|
8,100.4
|
8,447.9
|
6,916.2
|
Total deposits
|
43,589.5
|
38,573.5
|
39,467.3
|
36,159.0
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
3,125.4
|
2,948.5
|
2,054.4
|
2,404.5
|
Federal funds
purchased
|
1,620.0
|
1,365.0
|
1,110.0
|
845.0
|
Customer
repurchase agreements
|
409.1
|
315.6
|
235.2
|
332.9
|
Other
borrowings
|
-
|
-
|
-
|
11.0
|
Total borrowings
|
5,154.5
|
4,629.1
|
3,399.6
|
3,593.4
|
Notes and
debentures
|
993.1
|
915.7
|
911.5
|
895.8
|
Other
liabilities
|
905.5
|
822.8
|
797.9
|
695.2
|
Total liabilities
|
50,642.6
|
44,941.1
|
44,576.3
|
41,343.4
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
244.1
|
Common
stock
|
5.3
|
4.9
|
4.9
|
4.7
|
Additional paid-in
capital
|
7,639.4
|
6,901.5
|
6,890.7
|
6,549.3
|
Retained
earnings
|
1,512.8
|
1,449.3
|
1,388.1
|
1,284.8
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(122.9)
|
(124.7)
|
(126.5)
|
(130.1)
|
Accumulated other
comprehensive loss
|
(166.9)
|
(182.3)
|
(193.0)
|
(256.8)
|
Treasury stock, at
cost
|
(1,164.6)
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
Total stockholders' equity
|
7,947.2
|
7,130.7
|
7,046.2
|
6,533.9
|
Total liabilities and stockholders' equity
|
$
58,589.8
|
$
52,071.8
|
$
51,622.5
|
$
47,877.3
|
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)
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
147.2
|
|
$
136.6
|
|
$
139.9
|
|
$
132.7
|
|
$
130.2
|
|
Commercial and
industrial
|
114.9
|
|
113.4
|
|
111.4
|
|
103.9
|
|
100.1
|
|
Equipment
financing
|
66.7
|
|
65.3
|
|
62.8
|
|
59.0
|
|
56.7
|
|
Residential
mortgage
|
88.2
|
|
84.7
|
|
85.5
|
|
70.7
|
|
70.2
|
|
Home equity
and other consumer
|
30.8
|
|
24.7
|
|
25.7
|
|
24.9
|
|
24.4
|
|
Total interest on loans
|
447.8
|
|
424.7
|
|
425.3
|
|
391.2
|
|
381.6
|
|
Securities
|
47.8
|
|
44.7
|
|
46.2
|
|
47.8
|
|
48.5
|
|
Short-term
investments
|
1.0
|
|
1.3
|
|
1.2
|
|
1.3
|
|
1.4
|
|
Loans
held-for-sale
|
0.3
|
|
0.2
|
|
0.1
|
|
0.2
|
|
0.3
|
|
Total interest and dividend income
|
496.9
|
|
470.9
|
|
472.8
|
|
440.5
|
|
431.8
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
86.9
|
|
92.2
|
|
96.6
|
|
81.2
|
|
70.6
|
|
Borrowings
|
18.5
|
|
21.5
|
|
19.3
|
|
17.7
|
|
20.0
|
|
Notes and
debentures
|
8.8
|
|
8.5
|
|
8.8
|
|
8.8
|
|
8.6
|
|
Total interest expense
|
114.2
|
|
122.2
|
|
124.7
|
|
107.7
|
|
99.2
|
|
Net interest income
|
382.7
|
|
348.7
|
|
348.1
|
|
332.8
|
|
332.6
|
|
Provision for loan
losses
|
7.3
|
|
7.8
|
|
7.6
|
|
5.6
|
|
9.9
|
|
Net interest income after provision for loan losses
|
375.4
|
|
340.9
|
|
340.5
|
|
327.2
|
|
322.7
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
28.9
|
|
27.0
|
|
26.4
|
|
25.2
|
|
26.9
|
|
Investment
management fees
|
16.7
|
|
17.3
|
|
17.1
|
|
16.5
|
|
16.4
|
|
Commercial
banking lending fees
|
12.9
|
|
11.8
|
|
10.2
|
|
7.8
|
|
9.6
|
|
Operating
lease income
|
12.8
|
|
13.0
|
|
12.7
|
|
12.7
|
|
12.0
|
|
Customer
interest rate swap income, net
|
8.9
|
|
5.6
|
|
7.6
|
|
3.0
|
|
6.3
|
|
Insurance
revenue
|
7.5
|
|
10.3
|
|
8.7
|
|
10.5
|
|
6.7
|
|
Cash
management fees
|
7.1
|
|
7.3
|
|
7.2
|
|
6.8
|
|
6.6
|
|
Brokerage
commissions
|
2.6
|
|
2.6
|
|
2.6
|
|
2.8
|
|
3.3
|
|
Net security
gains (losses) (1)
|
0.1
|
|
-
|
|
0.1
|
|
-
|
|
(10.0)
|
|
Other
non-interest income (1)
|
26.7
|
|
11.1
|
|
13.7
|
|
9.3
|
|
10.9
|
|
Total non-interest income
|
124.2
|
|
106.0
|
|
106.3
|
|
94.6
|
|
88.7
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
171.4
|
|
158.1
|
|
161.3
|
|
155.4
|
|
151.5
|
|
Occupancy and
equipment
|
52.2
|
|
45.0
|
|
44.4
|
|
44.3
|
|
44.6
|
|
Professional
and outside services
|
29.6
|
|
23.7
|
|
24.9
|
|
20.0
|
|
21.4
|
|
Amortization
of other acquisition-related intangible assets
|
9.8
|
|
8.0
|
|
8.0
|
|
6.7
|
|
6.9
|
|
Operating
lease expense
|
9.6
|
|
9.9
|
|
9.9
|
|
9.4
|
|
9.8
|
|
Regulatory
assessments
|
7.3
|
|
5.3
|
|
6.5
|
|
7.0
|
|
7.4
|
|
Other
non-interest expense
|
45.8
|
|
31.4
|
|
23.4
|
|
34.4
|
|
21.1
|
|
Total non-interest expense (1)
|
325.7
|
|
281.4
|
|
278.4
|
|
277.2
|
|
262.7
|
|
Income before income tax expense
|
173.9
|
|
165.5
|
|
168.4
|
|
144.6
|
|
148.7
|
|
Income tax expense
(1)
|
36.4
|
|
30.4
|
|
35.2
|
|
30.0
|
|
15.8
|
|
Net income
|
137.5
|
|
135.1
|
|
133.2
|
|
114.6
|
|
132.9
|
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
Net income available to common shareholders
|
$
134.0
|
|
$
131.6
|
|
$
129.7
|
|
$
111.1
|
|
$
129.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.31
|
|
$
0.34
|
|
$
0.33
|
|
$
0.30
|
|
$
0.35
|
|
Diluted
|
0.31
|
|
0.33
|
|
0.33
|
|
0.30
|
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $10.0
million of security losses for the three months ended December 31,
2018, which are considered
|
|
non-operating, incurred in
response to a tax reform-related benefit recognized in the period.
Other non-interest income
|
includes $7.6 million of
non-operating income for the three months ended December 31, 2019.
Total non-interest expense
|
includes $39.1 million, $5.0
million, $6.5 million, $15.0 million and $8.0 million of
non-operating expenses for the three
|
months ended December, 31
2019, September 30, 2019, June 30, 2019, March 31, 2019 and
December 31, 2018, respectively.
|
Income tax expense for the
three months ended December 31, 2018 includes a $9.2 million
benefit recognized in connection
|
with tax reform, which is
considered non-operating. 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)
|
2019
|
|
2018
|
|
|
Interest and
dividend income:
|
|
|
|
|
|
Commercial
real estate
|
$
556.4
|
|
$
463.4
|
|
|
Commercial and
industrial
|
443.6
|
|
365.7
|
|
|
Equipment
financing
|
253.8
|
|
212.3
|
|
|
Residential
mortgage
|
329.1
|
|
236.2
|
|
|
Home equity
and other consumer
|
106.1
|
|
88.6
|
|
|
Total interest on loans
|
1,689.0
|
|
1,366.2
|
|
|
Securities
|
186.5
|
|
184.2
|
|
|
Short-term
investments
|
4.8
|
|
5.0
|
|
|
Loans held for
sale
|
0.8
|
|
0.9
|
|
|
Total interest and dividend income
|
1,881.1
|
|
1,556.3
|
|
|
Interest
expense:
|
|
|
|
|
|
Deposits
|
356.9
|
|
216.1
|
|
|
Borrowings
|
77.0
|
|
70.9
|
|
|
Notes and
debentures
|
34.9
|
|
33.3
|
|
|
Total interest expense
|
468.8
|
|
320.3
|
|
|
Net interest income
|
1,412.3
|
|
1,236.0
|
|
|
Provision for loan
losses
|
28.3
|
|
30.0
|
|
|
Net interest income after provision for loan losses
|
1,384.0
|
|
1,206.0
|
|
|
Non-interest
income:
|
|
|
|
|
|
Bank service
charges
|
107.5
|
|
99.9
|
|
|
Investment
management fees
|
67.6
|
|
68.7
|
|
|
Operating
lease income
|
51.2
|
|
44.9
|
|
|
Commercial
banking lending fees
|
42.7
|
|
37.3
|
|
|
Insurance
revenue
|
37.0
|
|
34.6
|
|
|
Cash
management fees
|
28.4
|
|
27.1
|
|
|
Customer
interest rate swap income, net
|
25.1
|
|
14.6
|
|
|
Brokerage
commissions
|
10.6
|
|
12.8
|
|
|
Net security
gains (losses) (1)
|
0.2
|
|
(9.8)
|
|
|
Other
non-interest income (1)
|
60.8
|
|
36.3
|
|
|
Total non-interest income
|
431.1
|
|
366.4
|
|
|
Non-interest
expense:
|
|
|
|
|
|
Compensation
and benefits
|
646.2
|
|
562.9
|
|
|
Occupancy and
equipment
|
185.9
|
|
168.2
|
|
|
Professional
and outside services
|
98.2
|
|
77.6
|
|
|
Operating
lease expense
|
38.8
|
|
36.4
|
|
|
Amortization
of other acquisition-related intangible assets
|
32.5
|
|
21.8
|
|
|
Regulatory
assessments
|
26.1
|
|
37.9
|
|
|
Other
non-interest expense
|
135.0
|
|
91.3
|
|
|
Total non-interest expense (1)
|
1,162.7
|
|
996.1
|
|
|
Income before income tax expense
|
652.4
|
|
576.3
|
|
|
Income tax expense
(1)
|
132.0
|
|
108.2
|
|
|
Net income
|
520.4
|
|
468.1
|
|
|
Preferred stock
dividend
|
14.1
|
|
14.1
|
|
|
Net income available to common shareholders
|
$
506.3
|
|
$
454.0
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
Basic
|
$
1.28
|
|
$
1.30
|
|
|
Diluted
|
1.27
|
|
1.29
|
|
|
|
|
|
|
|
|
(1) Includes $10.0
million of security losses for the twelve months ended December 31,
2018, which are considered
|
non-operating, incurred in
response to a tax reform-related benefit recognized in the period.
Other non-interest
|
income includes $7.6 million
of non-operating income for the twelve months ended December 31,
2019. Total
|
non-interest expense
includes $65.6 million and $11.4 million of non-operating expenses
for the twelve months
|
ended December 31, 2019 and
2018, respectively. Income tax expense for the twelve months
ended
|
|
December 31, 2018 includes a
$9.2 million benefit recognized in connection with tax reform,
which is considered
|
non-operating. 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,
2019
|
|
September 30,
2019
|
|
December 31,
2018
|
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
|
$
294.4
|
$
1.0
|
1.39%
|
|
$
218.7
|
$
1.3
|
2.33%
|
|
$
291.6
|
$
1.4
|
2.02%
|
Securities
(2)
|
7,372.2
|
52.6
|
2.85
|
|
7,041.3
|
49.4
|
2.80
|
|
7,478.7
|
52.9
|
2.83
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
13,793.2
|
147.2
|
4.27
|
|
12,194.8
|
136.6
|
4.48
|
|
11,688.1
|
130.2
|
4.45
|
Commercial and
industrial
|
10,805.1
|
117.7
|
4.36
|
|
10,059.2
|
116.0
|
4.61
|
|
8,880.3
|
102.6
|
4.62
|
Equipment
financing
|
4,785.0
|
66.7
|
5.58
|
|
4,640.6
|
65.3
|
5.63
|
|
4,243.2
|
56.7
|
5.34
|
Residential
mortgage
|
10,019.0
|
88.5
|
3.53
|
|
9,392.7
|
84.9
|
3.62
|
|
8,165.4
|
70.5
|
3.46
|
Home equity
and other consumer
|
2,603.8
|
30.8
|
4.72
|
|
2,029.2
|
24.7
|
4.88
|
|
2,038.5
|
24.4
|
4.80
|
Total loans
|
42,006.1
|
450.9
|
4.29
|
|
38,316.5
|
427.5
|
4.46
|
|
35,015.5
|
384.4
|
4.39
|
Total earning assets
|
49,672.7
|
$
504.5
|
4.06%
|
|
45,576.5
|
$ 478.2
|
4.20%
|
|
42,785.8
|
$ 438.7
|
4.10%
|
Other
assets
|
6,457.2
|
|
|
|
5,947.8
|
|
|
|
4,935.3
|
|
|
Total assets
|
$
56,129.9
|
|
|
|
$
51,524.3
|
|
|
|
$
47,721.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
9,593.6
|
$
-
|
- %
|
|
$
8,777.3
|
$
-
|
- %
|
|
$
8,576.4
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
23,674.3
|
49.7
|
0.84
|
|
21,758.5
|
53.4
|
0.98
|
|
20,621.7
|
41.7
|
0.81
|
Time
|
8,926.8
|
37.2
|
1.67
|
|
8,121.6
|
38.8
|
1.91
|
|
6,761.1
|
28.9
|
1.71
|
Total deposits
|
42,194.7
|
86.9
|
0.82
|
|
38,657.4
|
92.2
|
0.95
|
|
35,959.2
|
70.6
|
0.79
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,287.7
|
11.4
|
1.99
|
|
2,363.0
|
14.1
|
2.39
|
|
2,371.9
|
14.9
|
2.51
|
Federal funds
purchased
|
1,489.3
|
6.4
|
1.73
|
|
1,202.3
|
6.8
|
2.26
|
|
761.4
|
4.5
|
2.38
|
Customer
repurchase agreements
|
369.2
|
0.7
|
0.73
|
|
290.1
|
0.6
|
0.86
|
|
285.1
|
0.4
|
0.56
|
Other
borrowings
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
37.5
|
0.2
|
2.26
|
Total borrowings
|
4,146.2
|
18.5
|
1.78
|
|
3,855.4
|
21.5
|
2.23
|
|
3,455.9
|
20.0
|
2.32
|
Notes and
debentures
|
973.5
|
8.8
|
3.61
|
|
913.8
|
8.5
|
3.73
|
|
886.4
|
8.6
|
3.90
|
Total funding liabilities
|
47,314.4
|
$
114.2
|
0.96%
|
|
43,426.6
|
$ 122.2
|
1.13%
|
|
40,301.5
|
$
99.2
|
0.99%
|
Other
liabilities
|
1,161.3
|
|
|
|
1,019.1
|
|
|
|
904.2
|
|
|
Total liabilities
|
48,475.7
|
|
|
|
44,445.7
|
|
|
|
41,205.7
|
|
|
Stockholders'
equity
|
7,654.2
|
|
|
|
7,078.6
|
|
|
|
6,515.4
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
56,129.9
|
|
|
|
$
51,524.3
|
|
|
|
$
47,721.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$
390.3
|
3.10%
|
|
|
$ 356.0
|
3.07%
|
|
|
$ 339.5
|
3.11%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.14%
|
|
|
|
3.12%
|
|
|
|
3.17%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average yields
earned and rates paid are annualized.
|
|
|
|
|
|
|
|
|
|
(1) Average balances
and yields for securities are based on amortized cost.
|
|
|
|
|
|
|
(2) The fully taxable
equivalent adjustment was $7.6 million, $7.3 million and $6.9
million for the three months ended
|
|
December 31, 2019,
September 30, 2019 and December 31, 2018, respectively.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Twelve months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
232.7
|
$
4.8
|
2.06%
|
|
$
278.9
|
$
5.0
|
1.81%
|
|
Securities
(1)
|
7,217.5
|
205.2
|
2.84
|
|
7,343.7
|
200.9
|
2.74
|
|
Loans:
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
12,480.1
|
556.4
|
4.46
|
|
11,017.7
|
463.4
|
4.21
|
|
Commercial and
industrial
|
9,874.7
|
454.3
|
4.60
|
|
8,611.7
|
375.4
|
4.36
|
|
Equipment
financing
|
4,574.9
|
253.8
|
5.55
|
|
4,040.8
|
212.3
|
5.25
|
|
Residential
mortgage
|
9,314.8
|
329.9
|
3.54
|
|
7,188.6
|
237.1
|
3.30
|
|
Home equity
and other consumer
|
2,174.0
|
106.1
|
4.88
|
|
1,995.6
|
88.6
|
4.44
|
|
Total loans
|
38,418.5
|
1,700.5
|
4.43
|
|
32,854.4
|
1,376.8
|
4.19
|
|
Total earning assets
|
45,868.7
|
$
1,910.5
|
4.17%
|
|
40,477.0
|
$
1,582.7
|
3.91%
|
|
Other
assets
|
5,789.3
|
|
|
|
4,552.7
|
|
|
|
Total assets
|
$
51,658.0
|
|
|
|
$
45,029.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
8,822.9
|
$
-
|
- %
|
|
$
8,069.8
|
$
-
|
- %
|
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
and money market
|
22,204.1
|
209.3
|
0.94
|
|
19,630.1
|
127.4
|
0.65
|
|
Time
|
8,115.7
|
147.6
|
1.82
|
|
5,901.4
|
88.7
|
1.50
|
|
Total deposits
|
39,142.7
|
356.9
|
0.91
|
|
33,601.3
|
216.1
|
0.64
|
|
Borrowings:
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,098.0
|
50.1
|
2.39
|
|
2,653.6
|
54.5
|
2.05
|
|
Federal funds
purchased
|
1,127.5
|
24.6
|
2.18
|
|
682.2
|
13.6
|
2.00
|
|
Customer
repurchase agreements
|
296.6
|
2.2
|
0.75
|
|
252.7
|
1.0
|
0.40
|
|
Other
borrowings
|
3.3
|
0.1
|
1.87
|
|
104.5
|
1.8
|
1.66
|
|
Total borrowings
|
3,525.4
|
77.0
|
2.18
|
|
3,693.0
|
70.9
|
1.92
|
|
Notes and
debentures
|
922.1
|
34.9
|
3.78
|
|
889.8
|
33.3
|
3.75
|
|
Total funding liabilities
|
43,590.2
|
$
468.8
|
1.08%
|
|
38,184.1
|
$
320.3
|
0.84%
|
|
Other
liabilities
|
996.5
|
|
|
|
808.4
|
|
|
|
Total liabilities
|
44,586.7
|
|
|
|
38,992.5
|
|
|
|
Stockholders'
equity
|
7,071.3
|
|
|
|
6,037.2
|
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
51,658.0
|
|
|
|
$
45,029.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (2)
|
|
$
1,441.7
|
3.09%
|
|
|
$
1,262.4
|
3.07%
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.14%
|
|
|
|
3.12%
|
|
|
|
|
|
|
|
|
|
|
(2) Average balances
and yields for securities are based on amortized cost.
|
|
|
|
(3) The fully taxable
equivalent adjustment was $29.4 million and $26.4 million for the
twelve months ended
|
December 31, 2019 and
2018, 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)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
29.8
|
$
|
25.1
|
$
|
23.2
|
$
|
33.6
|
$
|
33.5
|
|
Commercial and
industrial
|
|
32.1
|
|
37.7
|
|
45.4
|
|
30.3
|
|
38.0
|
|
Equipment
financing
|
|
46.2
|
|
41.5
|
|
42.7
|
|
37.5
|
|
42.0
|
|
Total
|
|
108.1
|
|
104.3
|
|
111.3
|
|
101.4
|
|
113.5
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
36.3
|
|
36.6
|
|
38.4
|
|
35.4
|
|
38.9
|
|
Home
equity
|
|
12.6
|
|
14.3
|
|
14.7
|
|
14.1
|
|
15.3
|
|
Other
consumer
|
|
-
|
|
0.1
|
|
-
|
|
-
|
|
-
|
|
Total
|
|
48.9
|
|
51.0
|
|
53.1
|
|
49.5
|
|
54.2
|
|
Total originated non-performing loans (1)
|
|
157.0
|
|
155.3
|
|
164.4
|
|
150.9
|
|
167.7
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
11.9
|
|
12.3
|
|
8.1
|
|
6.9
|
|
5.5
|
|
Commercial
|
|
7.3
|
|
7.7
|
|
0.6
|
|
4.1
|
|
8.7
|
|
Total REO
|
|
19.2
|
|
20.0
|
|
8.7
|
|
11.0
|
|
14.2
|
|
Repossessed
assets
|
|
4.2
|
|
6.3
|
|
5.7
|
|
5.6
|
|
3.9
|
|
Total non-performing assets
|
$
|
180.4
|
$
|
181.6
|
$
|
178.8
|
$
|
167.5
|
$
|
185.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount)
|
$
|
67.1
|
$
|
21.1
|
$
|
34.1
|
$
|
42.6
|
$
|
50.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.48
|
%
|
0.48
|
%
|
0.52
|
%
|
0.49
|
%
|
0.55
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
|
0.55
|
|
0.56
|
|
0.56
|
|
0.54
|
|
0.61
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
3.67
|
|
4.21
|
|
4.24
|
|
4.23
|
|
4.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $1.3 million at December 31, 2019,
$1.4 million at September 30, 2019,
|
$1.6 million at June
30, 2019, $1.4 million at March 31, 2019 and $1.9 million at
December 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
|
242.3
|
$
|
240.1
|
$
|
236.9
|
$
|
236.3
|
$
|
233.9
|
|
Charge-offs
|
|
(7.2)
|
|
(6.8)
|
|
(4.4)
|
|
(5.6)
|
|
(7.3)
|
|
Recoveries
|
|
1.6
|
|
2.1
|
|
2.2
|
|
2.2
|
|
1.3
|
|
Net loan charge-offs
|
|
(5.6)
|
|
(4.7)
|
|
(2.2)
|
|
(3.4)
|
|
(6.0)
|
|
Provision for
loan losses
|
|
8.8
|
|
6.9
|
|
5.4
|
|
4.0
|
|
8.4
|
|
Balance at end of period
|
|
245.5
|
|
242.3
|
|
240.1
|
|
236.9
|
|
236.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
3.7
|
|
3.9
|
|
4.0
|
|
4.1
|
|
4.1
|
|
Charge-offs
|
|
(1.3)
|
|
(1.4)
|
|
(2.9)
|
|
(1.9)
|
|
(1.8)
|
|
Recoveries
|
|
0.2
|
|
0.3
|
|
0.6
|
|
0.2
|
|
0.3
|
|
Net loan charge-offs
|
|
(1.1)
|
|
(1.1)
|
|
(2.3)
|
|
(1.7)
|
|
(1.5)
|
|
Provision for
loan losses
|
|
(1.5)
|
|
0.9
|
|
2.2
|
|
1.6
|
|
1.5
|
|
Balance at end of period
|
|
1.1
|
|
3.7
|
|
3.9
|
|
4.0
|
|
4.1
|
|
Total allowance for loan losses
|
$
|
246.6
|
$
|
246.0
|
$
|
244.0
|
$
|
240.9
|
$
|
240.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated commercial
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
0.89
|
%
|
0.89
|
%
|
0.91
|
%
|
0.91
|
%
|
0.93
|
%
|
Originated retail
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated retail loans
|
|
0.35
|
|
0.35
|
|
0.34
|
|
0.37
|
|
0.36
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
|
|
0.75
|
|
0.75
|
|
0.76
|
|
0.76
|
|
0.77
|
|
Originated non-performing loans
|
|
156.4
|
|
156.0
|
|
146.0
|
|
157.0
|
|
140.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
(0.1)
|
$
|
(0.2)
|
$
|
0.1
|
$
|
1.1
|
$
|
1.4
|
|
Commercial and
industrial
|
|
2.3
|
|
1.6
|
|
0.2
|
|
1.7
|
|
1.4
|
|
Equipment
financing
|
|
4.2
|
|
4.2
|
|
3.9
|
|
2.2
|
|
4.4
|
|
Total
|
|
6.4
|
|
5.6
|
|
4.2
|
|
5.0
|
|
7.2
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
(0.2)
|
|
-
|
|
0.1
|
|
0.1
|
|
-
|
|
Home
equity
|
|
0.3
|
|
-
|
|
-
|
|
(0.2)
|
|
0.1
|
|
Other
consumer
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
Total
|
|
0.3
|
|
0.2
|
|
0.3
|
|
0.1
|
|
0.3
|
|
Total net loan charge-offs
|
$
|
6.7
|
$
|
5.8
|
$
|
4.5
|
$
|
5.1
|
$
|
7.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.06
|
%
|
0.06
|
%
|
0.05
|
%
|
0.06
|
%
|
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) (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.
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) diluted 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)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Total non-interest
expense
|
|
$
325.7
|
|
$
281.4
|
|
$
278.4
|
|
$
277.2
|
|
$
262.7
|
|
$ 1,162.7
|
|
$
996.1
|
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(22.6)
|
|
(5.0)
|
|
(6.5)
|
|
(15.0)
|
|
(8.0)
|
|
(49.1)
|
|
(11.4)
|
|
Intangible
asset write off
|
|
(16.5)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(16.5)
|
|
-
|
|
Total
|
|
(39.1)
|
|
(5.0)
|
|
(6.5)
|
|
(15.0)
|
|
(8.0)
|
|
(65.6)
|
|
(11.4)
|
|
Operating non-interest expense
|
|
286.6
|
|
276.4
|
|
271.9
|
|
262.2
|
|
254.7
|
|
1,097.1
|
|
984.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(9.6)
|
|
(9.9)
|
|
(9.9)
|
|
(9.4)
|
|
(9.8)
|
|
(38.8)
|
|
(36.4)
|
|
Amortization of other
acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(9.8)
|
|
(8.0)
|
|
(8.0)
|
|
(6.7)
|
|
(6.9)
|
|
(32.5)
|
|
(21.8)
|
|
Other (1)
|
|
(1.6)
|
|
(1.4)
|
|
(1.4)
|
|
(1.8)
|
|
(1.6)
|
|
(6.2)
|
|
(6.4)
|
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
265.6
|
|
$
257.1
|
|
$
252.6
|
|
$
244.3
|
|
$
236.4
|
|
$ 1,019.6
|
|
$
920.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
390.3
|
|
$
356.0
|
|
$
355.4
|
|
$
340.0
|
|
$
339.5
|
|
$ 1,441.7
|
|
$
1,262.4
|
|
Total non-interest
income
|
|
124.2
|
|
106.0
|
|
106.3
|
|
94.6
|
|
88.7
|
|
431.1
|
|
366.4
|
|
Total revenues
|
|
514.5
|
|
462.0
|
|
461.7
|
|
434.6
|
|
428.2
|
|
1,872.8
|
|
1,628.8
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(9.6)
|
|
(9.9)
|
|
(9.9)
|
|
(9.4)
|
|
(9.8)
|
|
(38.8)
|
|
(36.4)
|
|
Gain on sale
of branches, net of expenses
|
(7.6)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7.6)
|
|
-
|
|
BOLI FTE
adjustment
|
|
0.7
|
|
0.5
|
|
0.7
|
|
0.6
|
|
0.5
|
|
2.5
|
|
9.8
|
|
Net security
(gains) losses
|
|
(0.1)
|
|
-
|
|
(0.1)
|
|
-
|
|
10.0
|
|
(0.2)
|
|
1.9
|
|
Other
(2)
|
|
(3.2)
|
|
0.1
|
|
-
|
|
0.3
|
|
-
|
|
(2.8)
|
|
-
|
|
Total revenues for efficiency ratio
|
|
$
494.7
|
|
$
452.7
|
|
$
452.4
|
|
$
426.1
|
|
$
428.9
|
|
$ 1,825.9
|
|
$
1,604.1
|
|
Efficiency ratio
|
|
53.7%
|
|
56.8%
|
|
55.8%
|
|
57.3%
|
|
55.1%
|
|
55.8%
|
|
57.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
|
|
|
|
|
|
|
|
|
|
|
|
(2) 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/losses 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)
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019 (3)
|
|
2018
|
Net income available
to common shareholders
|
$
134.0
|
|
$
131.6
|
|
$
129.7
|
|
$
111.1
|
|
$
129.4
|
|
$
506.3
|
|
$
454.0
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale
of branches, net of expenses
|
|
(7.6)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7.6)
|
|
-
|
Merger-related
expenses
|
|
22.6
|
|
5.0
|
|
6.5
|
|
15.0
|
|
8.0
|
|
49.1
|
|
11.4
|
Intangible
asset write off
|
|
16.5
|
|
-
|
|
-
|
|
-
|
|
-
|
|
16.5
|
|
-
|
Security
losses associated with tax reform (1)
|
-
|
|
-
|
|
-
|
|
-
|
|
10.0
|
|
-
|
|
10.0
|
Total pre-tax adjustments
|
|
31.5
|
|
5.0
|
|
6.5
|
|
15.0
|
|
18.0
|
|
58.0
|
|
21.4
|
Tax effect
(2)
|
|
(6.7)
|
|
(1.1)
|
|
(1.4)
|
|
(3.1)
|
|
(13.2)
|
|
(12.2)
|
|
(14.0)
|
Total adjustments, net of tax
|
|
24.8
|
|
3.9
|
|
5.1
|
|
11.9
|
|
4.8
|
|
45.8
|
|
7.4
|
Operating earnings
|
|
$
158.8
|
|
$
135.5
|
|
$
134.8
|
|
$
123.0
|
|
$
134.2
|
|
$
552.1
|
|
$
461.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.31
|
|
$
0.33
|
|
$
0.33
|
|
$
0.30
|
|
$
0.35
|
|
$
1.27
|
|
$
1.29
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale
of branches, net of expenses
|
|
(0.01)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
Merger-related
expenses
|
|
0.04
|
|
0.01
|
|
0.01
|
|
0.03
|
|
0.01
|
|
0.10
|
|
0.02
|
Intangible
asset write off
|
|
0.03
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.03
|
|
-
|
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
|
|
0.06
|
|
0.01
|
|
0.01
|
|
0.03
|
|
0.01
|
|
0.12
|
|
0.02
|
Operating EPS
|
|
$
0.37
|
|
$
0.34
|
|
$
0.34
|
|
$
0.33
|
|
$
0.36
|
|
$
1.39
|
|
$
1.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 56,130
|
|
$ 51,524
|
|
$ 51,088
|
|
$ 47,800
|
|
$
47,721
|
|
$ 51,658
|
|
$
45,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
1.13%
|
|
1.05%
|
|
1.06%
|
|
1.03%
|
|
1.12%
|
|
1.07%
|
|
1.02%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Security losses
incurred as a tax planning strategy in response to a tax
reform-related benefit are considered non-operating.
|
(2) Includes a $9.2
million benefit recognized in connection with tax reform for the
three and twelve months ended December 31, 2018.
|
(3) The sum of the
quarterly amounts for certain line items do not equal the full-year
amount due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating
earnings
|
|
$
158.8
|
|
$
135.5
|
|
$
134.8
|
|
$
123.0
|
|
$
134.2
|
|
$
552.1
|
|
$
461.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
7,654
|
|
$
7,079
|
|
$
6,978
|
|
$
6,562
|
|
$
6,515
|
|
$
7,071
|
|
$
6,037
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
7,410
|
|
6,835
|
|
6,734
|
|
6,318
|
|
6,271
|
|
6,827
|
|
5,793
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,226
|
|
3,069
|
|
3,043
|
|
2,900
|
|
2,807
|
|
3,060
|
|
2,623
|
Average tangible
common equity
|
|
$
4,184
|
|
$
3,766
|
|
$
3,691
|
|
$
3,418
|
|
$
3,464
|
|
$
3,767
|
|
$
3,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
15.2%
|
|
14.4%
|
|
14.6%
|
|
14.4%
|
|
15.5%
|
|
14.7%
|
|
14.6%
|
People's United
Financial, Inc.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Common dividends
paid
|
|
$
69.9
|
|
$
69.9
|
|
$
69.8
|
|
$
65.2
|
|
$
65.1
|
|
$
274.8
|
|
$
243.8
|
Operating
earnings
|
|
$
158.8
|
|
$
135.5
|
|
$
134.8
|
|
$
123.0
|
|
$
134.2
|
|
$
552.1
|
|
$
461.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
44.0%
|
|
51.6%
|
|
51.8%
|
|
53.0%
|
|
48.5%
|
|
49.8%
|
|
52.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
|
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
Total stockholders'
equity
|
|
$
7,947
|
|
$
7,131
|
|
$
7,046
|
|
$
6,621
|
|
$
6,534
|
|
|
|
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
|
|
|
Common
equity
|
|
7,703
|
|
6,887
|
|
6,802
|
|
6,377
|
|
6,290
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,275
|
|
3,065
|
|
3,073
|
|
2,896
|
|
2,866
|
|
|
|
|
Tangible common
equity
|
|
$
4,428
|
|
$
3,822
|
|
$
3,730
|
|
$
3,481
|
|
$
3,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$58,590
|
|
$52,072
|
|
$ 51,622
|
|
$ 48,092
|
|
$ 47,877
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,275
|
|
3,065
|
|
3,073
|
|
2,896
|
|
2,866
|
|
|
|
|
Tangible
assets
|
|
$55,315
|
|
$49,007
|
|
$ 48,549
|
|
$ 45,196
|
|
$ 45,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
8.0%
|
|
7.8%
|
|
7.7%
|
|
7.7%
|
|
7.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
|
|
|
(in millions, except
per common share data)
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
Tangible common
equity
|
|
$
4,428
|
|
$
3,822
|
|
$
3,730
|
|
$
3,481
|
|
$
3,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
532.83
|
|
487.59
|
|
487.35
|
|
467.38
|
|
466.32
|
|
|
|
|
Less: Shares
classified as treasury shares
|
|
89.17
|
|
89.01
|
|
89.01
|
|
89.01
|
|
89.03
|
|
|
|
|
Unallocated ESOP shares
|
|
5.92
|
|
6.01
|
|
6.10
|
|
6.19
|
|
6.27
|
|
|
|
|
Common
shares
|
|
437.74
|
|
392.57
|
|
392.24
|
|
372.18
|
|
371.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
10.12
|
|
$
9.74
|
|
$
9.51
|
|
$
9.35
|
|
$
9.23
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-fourth-quarter-net-income-of-137-5-million-or-0-31-per-common-share-300988388.html
SOURCE People's United Financial, Inc.