BRIDGEPORT, Conn., Oct. 22, 2020 /PRNewswire/ -- People's United
Financial, Inc. (NASDAQ: PBCT) today reported results for the third
quarter 2020. These results along with comparison periods are
summarized below:
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($ in millions,
except per common share data)
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Three Months
Ended
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Sep. 30,
2020
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Jun. 30,
2020
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Sep. 30,
2019
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Net income
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$
144.6
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$
89.9
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$
135.1
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Net income
available
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141.1
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86.4
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131.6
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to common
shareholders
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Per common
share
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0.34
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0.21
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0.33
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Operating
earnings1
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144.7
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101.0
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135.5
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Per common
share
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0.34
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0.24
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0.34
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Net interest
income
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$
391.4
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$
405.6
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$
348.7
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Net interest
margin
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2.97%
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3.05%
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3.12%
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Non-interest
income
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101.1
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89.6
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106.0
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Non-interest
expense
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$
293.6
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$
304.0
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$
281.4
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Operating
non-interest expense1
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289.0
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285.5
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276.4
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Efficiency
ratio
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53.8%
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53.5%
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56.8%
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Average
balances
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Loans
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$
44,853
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$
45,153
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$
38,317
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Deposits
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49,542
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48,447
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38,657
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Period-end
balances
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Loans
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45,231
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45,452
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38,781
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Deposits
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49,637
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49,934
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38,574
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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"We are pleased with the Company's third quarter financial and
operating performance, which is reflective of strong execution
throughout the franchise," said Jack
Barnes, Chairman and Chief Executive Officer. "Our employees
have successfully adapted to the pandemic-driven environment and
its many challenges. This has enabled them to effectively meet
customer needs, introduce AlwaysChecking our new free digital
identity protection service, and advance strategic initiatives.
Specifically, we remain focused on investing in digital
capabilities and we strengthened this commitment with the recent
creation of the Business Transformation Office. This specialized
unit will lead our efforts related to digitization, process
automation, and Fintech relationships. We are excited about the
enhancements and efficiencies this team will deliver moving
forward."
Barnes continued, "The total impact of the pandemic on the
long-term economy is unknown. However, improvements in economic
activity during the quarter provide us a level of cautious optimism
as we look ahead. We are particularly pleased with the significant
reduction in customers needing relief as total loan deferrals were
approximately $1.6 billion at
September 30, down from more than
$7.1 billion at the end of June. Our
relationship managers have continued to maintain a high level of
contact to help borrowers navigate their specific situations. We
remain confident the strength of our long-held, conservative
underwriting philosophy and approach to supporting customers will
continue to serve the Company well."
"Third quarter operating earnings of $144.7 million, increased 43 percent
linked-quarter and benefited from higher fee income,
well-maintained expenses, reduced provision, and a lower effective
tax rate," stated David Rosato,
Senior Executive Vice President and Chief Financial Officer. "We
remain disciplined managing deposit costs, which were down for the
fifth consecutive quarter. Our net interest margin of 3.00%,
excluding the unfavorable impact of PPP loans, was approximately
five basis points lower from the second quarter, primarily due to
downward pressure on loan yields. Commercial period-end loans grew
$422 million or one percent from
June 30 as a result of record
mortgage warehouse balances and solid growth by LEAF. Conversely,
retail period-end loans decreased $643
million or five percent mostly attributable to our planned
reduction of residential mortgages. Period-end deposits were down
$298 million or one percent
linked-quarter as strong commercial growth was more than offset by
runoff of higher cost wholesale funding and a decline in municipal
balances."
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As of and for
the Three Months Ended
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Sep. 30,
2020
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Jun. 30,
2020
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Sep. 30,
2019
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Asset
Quality
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Net loan
charge-offs
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0.15%
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0.08%
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0.06%
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to
average total loans
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Non-performing
loans
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0.68%
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0.65%
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0.45%
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as a
percentage of total loans1
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Returns
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Return on average
assets2
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0.94%
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0.58%
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1.05%
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Return on average
tangible common equity2
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13.1%
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8.1%
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14.0%
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Capital
Ratios
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People's United
Financial, Inc.
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Tangible common
equity / tangible assets
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7.5%
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7.3%
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7.8%
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Tier 1
leverage
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8.2%
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8.0%
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8.7%
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Common equity tier
1
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10.0%
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9.8%
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10.1%
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Tier 1
risk-based
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10.5%
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10.3%
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10.7%
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Total
risk-based
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11.9%
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11.8%
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12.0%
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People's United Bank,
N.A.
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Tier 1
leverage
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8.7%
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8.5%
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8.8%
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Common equity tier
1
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11.1%
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10.9%
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10.8%
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Tier 1
risk-based
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11.1%
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10.9%
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10.8%
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Total
risk-based
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12.3%
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12.3%
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12.2%
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1Ratios
for periods prior to January 1, 2020 have been restated to reflect
the total loan portfolio (originated & acquired).
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2See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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The Board of Directors declared a $0.18 per common share quarterly dividend payable
November 15, 2020 to shareholders of
record on November 2, 2020. Based on
the closing stock price on October 21,
2020, the dividend yield on People's United Financial common
stock is 6.8 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
$61 billion in assets. Founded in
1842, People's United Bank offers commercial and retail banking
through a network of more than 400 retail locations in Connecticut, New
York, Massachusetts,
Vermont, New Hampshire and Maine, as well as wealth management solutions.
The company also provides specialized commercial services to
customers nationwide.
3Q 2020 Financial Highlights
Summary
- Net income totaled $144.6
million, or $0.34 per common
share.
-
- Net income available to common shareholders totaled
$141.1 million.
- Operating earnings totaled $144.7
million, or $0.34 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $391.4
million in 3Q20 compared to $405.6
million in 2Q20.
- Net interest margin decreased eight basis points from 2Q20 to
2.97% reflecting:
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- Lower yields on the loan portfolio (decrease of 15 basis
points).
- Lower rates on deposits (increase of four basis points).
- Lower rates on borrowings (increase of one basis point).
- One additional calendar day in 3Q20 (increase of two basis
points).
- Provision for credit losses on loans totaled $27.1 million.
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- Allowance for credit losses on loans increased $9.8 million.
- Net loan charge-offs totaled $17.3
million.
- Net loan charge-off ratio of 0.15% in 3Q20.
- Non-interest income totaled $101.1
million in 3Q20 compared to $89.6
million in 2Q20.
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- Bank service charges increased $4.2
million.
- Commercial banking lending fees increased $2.1 million.
- Investment management fees increased $1.4 million.
- Customer interest rate swap income decreased $1.5 million.
- At September 30, 2020, assets
under discretionary management totaled $8.9
billion.
- Non-interest expense totaled $293.6
million in 3Q20 compared to $304.0
million in 2Q20.
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- Operating non-interest expense totaled $289.0 million in 3Q20 and $285.5 million in 2Q20 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $0.3 million and $1.0
million of merger-related expenses in 3Q20 and 2Q20,
respectively, decreased $0.6
million.
- Occupancy and equipment expense, excluding $0.9 million and $0.2
million of merger-related expenses in 3Q20 and 2Q20,
respectively, increased $0.4
million.
- Professional and outside services expense, excluding
$1.4 million and $3.6 million of merger-related expenses in 3Q20
and 2Q20, respectively, increased $0.6
million.
- Other non-interest expense includes merger-related expenses of
$2.0 million in 3Q20 and $13.7 million in 2Q20.
- The efficiency ratio was 53.8% for 3Q20 compared to 53.5% for
2Q20 and 56.8% for 3Q19 (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 16.0% for 3Q20 and 18.7% for
the first nine months of 2020, compared to 20.2% for the full-year
of 2019.
Commercial Banking
- Commercial loans totaled $33.9
billion at September 30, 2020,
a $422 million increase from
June 30, 2020.
-
- Paycheck Protection Plan loans totaled $2.6 billion at September
30, 2020.
- The mortgage warehouse portfolio increased $768 million.
- The equipment financing portfolio increased $7 million.
- The New York multifamily
portfolio decreased $62 million.
- Average commercial loans totaled $33.1
billion in 3Q20, a $225
million increase from 2Q20.
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- Paycheck Protection Plan loans averaged $2.5 billion in 3Q20.
- The average mortgage warehouse portfolio increased $344 million.
- The average equipment financing portfolio decreased
$57 million.
- The average New York
multifamily portfolio decreased $62
million.
- Commercial deposits totaled $21.6
billion at September 30, 2020
compared to $21.0 billion at
June 30, 2020.
- The ratio of non-accrual commercial loans to total commercial
loans was 0.65% at September 30, 2020
compared to 0.63% at June 30,
2020.
- Non-performing commercial assets totaled $234.1 million at September 30, 2020 compared to $224.4 million at June 30,
2020.
- For the commercial loan portfolio, the allowance for credit
losses as a percentage of commercial loans was 0.86% at
September 30, 2020 compared to 0.83%
at June 30, 2020.
- The commercial allowance for credit losses represented 132% of
non-accrual commercial loans at September
30, 2020 compared to 131% at June 30,
2020.
Retail Banking
- Residential mortgage loans totaled $9.1
billion at September 30, 2020,
a $528 million decrease from
June 30, 2020.
-
- Average residential mortgage loans totaled $9.4 billion in 3Q20, a $413 million decrease from 2Q20.
- Home equity loans totaled $2.1
billion at September 30, 2020,
a $103 million decrease from
June 30, 2020.
-
- Average home equity loans totaled $2.2
billion in 3Q20, a $101
million decrease from 2Q20.
- Retail deposits totaled $28.0
billion at September 30, 2020
compared to $28.9 billion at
June 30, 2020.
- The ratio of non-accrual residential mortgage loans to
residential mortgage loans was 0.69% at September 30, 2020 compared to 0.65% at
June 30, 2020.
- The ratio of non-accrual home equity loans to home equity loans
was 1.04% at September 30, 2020
compared to 1.01% at June 30,
2020.
- For the retail loan portfolio, the allowance for credit losses
as a percentage of retail loans was 1.17% at September 30, 2020 compared to 1.14% at
June 30, 2020.
- The retail allowance for credit losses represented 155% of
non-accrual retail loans at September 30,
2020 compared to 160% at June 30,
2020.
Conference Call
On October 22,
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; (10) changes in regulation resulting from or relating
to financial reform legislation; and (11) the COVID-19 pandemic and
its effect on the economic and business environment in which we
operate. 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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As of and for the
Three Months Ended
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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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Sept. 30,
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(dollars in millions,
except per common share data)
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2020
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2020
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2020
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2019
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2019
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Earnings
Data:
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Net interest
income (fully taxable equivalent)
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$
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398.7
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$
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413.0
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$
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403.7
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$
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390.3
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$
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356.0
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Net interest
income
|
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391.4
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405.6
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396.0
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382.7
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348.7
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Provision for
credit losses (1)
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26.8
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80.8
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33.5
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7.3
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7.8
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Non-interest
income (2)
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101.1
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89.6
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123.8
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124.2
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106.0
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Non-interest
expense (2)
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293.6
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304.0
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320.1
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325.7
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281.4
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Income before
income tax expense
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172.1
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110.4
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166.2
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173.9
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165.5
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Net
income
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144.6
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|
89.9
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130.4
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137.5
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135.1
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Net income
available to common shareholders (2)
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141.1
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86.4
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126.9
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134.0
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131.6
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Selected
Statistical Data:
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Net interest
margin (3)
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2.97
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%
|
3.05
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%
|
3.12
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%
|
3.14
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%
|
3.12
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%
|
Return on
average assets (2), (3)
|
|
0.94
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|
0.58
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|
0.89
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|
0.98
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|
1.05
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Return on
average common equity (3)
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7.5
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4.6
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6.7
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7.2
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7.7
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Return on
average tangible common equity (2), (3)
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13.1
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8.1
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11.8
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12.8
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14.0
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Efficiency
ratio (2)
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|
53.8
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53.5
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54.0
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53.7
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56.8
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Common Share
Data:
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Earnings per
common share:
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Basic
|
$
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0.34
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$
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0.21
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$
|
0.30
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$
|
0.31
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$
|
0.34
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|
Diluted (2)
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|
0.34
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0.21
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|
0.30
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|
0.31
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|
0.33
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Dividends paid
per common share
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|
0.1800
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|
0.1800
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0.1775
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|
0.1775
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|
0.1775
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Common
dividend payout ratio (2)
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53.6
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%
|
87.4
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%
|
60.9
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%
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52.2
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%
|
53.1
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%
|
Book value per
common share
|
$
|
18.11
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$
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17.95
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$
|
17.87
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$
|
17.60
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$
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17.54
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Tangible book
value per common share (2)
|
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10.37
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10.18
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10.07
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10.12
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9.74
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Stock
price:
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High
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12.36
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13.99
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17.00
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17.22
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|
17.10
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Low
|
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9.74
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9.37
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10.40
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14.73
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13.81
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Close
|
|
10.31
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11.57
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11.05
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16.90
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|
15.64
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Common shares
outstanding (in millions) (2)
|
|
424.67
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|
424.59
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424.47
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|
443.66
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398.58
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Weighted
average diluted common shares (in millions)
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|
420.29
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420.15
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429.77
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424.98
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394.45
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(1) Provision for
credit losses in 2020 reflects the application of the CECL standard
and the impact of COVID-19.
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(2) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
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(3)
Annualized.
|
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People's United
Financial, Inc.
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FINANCIAL
HIGHLIGHTS
|
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As of and for
the
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|
|
Nine Months
Ended
|
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|
|
September
30,
|
|
|
(dollars in millions,
except per common share data)
|
|
2020
|
|
2019
|
|
|
Earnings
Data:
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
1,215.4
|
$
|
1,051.4
|
|
|
Net interest
income
|
|
1,193.0
|
|
1,029.6
|
|
|
Provision for
credit losses (1)
|
|
141.1
|
|
21.0
|
|
|
Non-interest
income
|
|
314.5
|
|
306.9
|
|
|
Non-interest
expense (2)
|
|
917.7
|
|
837.0
|
|
|
Income before
income tax expense
|
|
448.7
|
|
478.5
|
|
|
Net
income
|
|
364.9
|
|
383.0
|
|
|
Net income
available to common shareholders (2)
|
|
354.4
|
|
372.5
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
Net interest
margin (3)
|
|
3.05
|
%
|
3.14
|
%
|
|
Return on
average assets (2), (3)
|
|
0.80
|
|
1.02
|
|
|
Return on
average common equity (3)
|
|
6.3
|
|
7.5
|
|
|
Return on
average tangible common equity (2), (3)
|
|
11.0
|
|
13.7
|
|
|
Efficiency
ratio (2)
|
|
53.8
|
|
56.6
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
Basic
|
$
|
0.84
|
$
|
0.97
|
|
|
Diluted (2)
|
|
0.84
|
|
0.96
|
|
|
Dividends paid
per common share
|
|
0.5375
|
|
0.5300
|
|
|
Common
dividend payout ratio (2)
|
|
64.5
|
%
|
55.0
|
%
|
|
Book value per
common share
|
$
|
18.11
|
$
|
17.54
|
|
|
Tangible book
value per common share (2)
|
|
10.37
|
|
9.74
|
|
|
Stock
price:
|
|
|
|
|
|
|
High
|
|
17.00
|
|
18.03
|
|
|
Low
|
|
9.37
|
|
13.81
|
|
|
Close
|
|
10.31
|
|
15.64
|
|
|
Common shares
oustanding (in millions) (2)
|
|
424.67
|
|
398.58
|
|
|
Weighted
average diluted common shares (in millions)
|
|
423.28
|
|
387.78
|
|
|
|
|
|
|
|
|
|
(1) Provision for
credit losses in 2020 reflects the application of the CECL standard
and the impact of COVID-19.
|
(2) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
(3)
Annualized.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
60,871
|
$
|
61,510
|
$
|
60,433
|
$
|
58,590
|
$
|
52,072
|
|
Loans
|
|
45,231
|
|
45,452
|
|
44,284
|
|
43,596
|
|
38,781
|
|
Securities
|
|
8,270
|
|
8,233
|
|
8,552
|
|
7,790
|
|
7,135
|
|
Short-term investments
|
|
439
|
|
987
|
|
744
|
|
317
|
|
158
|
|
Allowance for credit losses (1)
|
|
424
|
|
414
|
|
342
|
|
247
|
|
246
|
|
Goodwill and other acquisition-related intangible assets
|
|
3,244
|
|
3,254
|
|
3,264
|
|
3,275
|
|
3,065
|
|
Deposits
|
|
49,637
|
|
49,934
|
|
44,741
|
|
43,590
|
|
38,574
|
|
Borrowings
|
|
1,237
|
|
1,782
|
|
5,911
|
|
5,155
|
|
4,629
|
|
Notes and debentures
|
|
1,012
|
|
1,015
|
|
1,013
|
|
993
|
|
916
|
|
Stockholders' equity
|
|
7,831
|
|
7,763
|
|
7,726
|
|
7,947
|
|
7,131
|
|
Total risk-weighted assets (2):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
45,647
|
|
45,657
|
|
46,408
|
|
45,208
|
|
39,794
|
|
People's United
Bank, N.A.
|
|
45,577
|
|
45,615
|
|
46,397
|
|
45,174
|
|
39,742
|
|
Non-accrual loans
|
|
306
|
|
296
|
|
240
|
|
224
|
|
176
|
|
Net loan charge-offs
|
|
17.3
|
|
8.5
|
|
10.6
|
|
6.7
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
44,853
|
$
|
45,153
|
$
|
43,460
|
$
|
42,006
|
$
|
38,317
|
|
Securities (3)
|
|
7,922
|
|
8,240
|
|
8,022
|
|
7,372
|
|
7,041
|
|
Short-term investments
|
|
842
|
|
774
|
|
289
|
|
294
|
|
219
|
|
Total earning assets
|
|
53,617
|
|
54,168
|
|
51,772
|
|
49,673
|
|
45,577
|
|
Total assets
|
|
61,293
|
|
61,841
|
|
58,604
|
|
56,130
|
|
51,524
|
|
Deposits
|
|
49,542
|
|
48,447
|
|
44,163
|
|
42,195
|
|
38,657
|
|
Borrowings
|
|
1,283
|
|
2,911
|
|
4,353
|
|
4,146
|
|
3,855
|
|
Notes and debentures
|
|
1,014
|
|
1,014
|
|
1,000
|
|
974
|
|
914
|
|
Total funding liabilities
|
|
51,839
|
|
52,372
|
|
49,515
|
|
47,314
|
|
43,427
|
|
Stockholders' equity
|
|
7,801
|
|
7,757
|
|
7,804
|
|
7,654
|
|
7,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
|
0.15
|
%
|
0.08
|
%
|
0.10
|
%
|
0.06
|
%
|
0.06
|
%
|
Non-performing assets to total loans, real estate owned
|
|
|
|
|
|
|
|
|
|
|
|
and repossessed
assets
|
|
0.71
|
|
0.69
|
|
0.59
|
|
0.57
|
|
0.52
|
|
Allowance for credit losses to (1):
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.94
|
|
0.91
|
|
0.77
|
|
0.57
|
|
0.63
|
|
Non-accrual
loans
|
|
138.4
|
|
139.8
|
|
142.2
|
|
110.0
|
|
139.5
|
|
Average stockholders' equity to average total assets
|
|
12.7
|
|
12.5
|
|
13.3
|
|
13.6
|
|
13.7
|
|
Stockholders' equity to total assets
|
|
12.9
|
|
12.6
|
|
12.8
|
|
13.6
|
|
13.7
|
|
Tangible common equity to tangible assets (4)
|
|
7.5
|
|
7.3
|
|
7.4
|
|
8.0
|
|
7.8
|
|
Total risk-based capital (2):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
11.9
|
|
11.8
|
|
11.3
|
|
12.0
|
|
12.0
|
|
People's United
Bank, N.A.
|
|
12.3
|
|
12.3
|
|
12.0
|
|
12.1
|
|
12.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Allowance for
credit losses and asset quality ratios for 2020 reflect the initial
adoption and application of the CECL standard.
|
(2) September 30,
2020 amounts and ratios are preliminary.
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
Sept.
30,
|
June
30,
|
Dec. 31,
|
Sept.
30,
|
(in
millions)
|
2020
|
2020
|
2019
|
2019
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
616.8
|
$
491.9
|
$
484.2
|
$
635.2
|
Short-term
investments
|
438.6
|
987.4
|
316.8
|
157.8
|
Securities:
|
|
|
|
|
Trading debt
securities, at fair value
|
-
|
-
|
7.1
|
9.3
|
Equity
securities, at fair value
|
5.6
|
5.8
|
8.2
|
7.8
|
Debt
securities available-for-sale, at fair value
|
4,080.7
|
4,080.3
|
3,564.3
|
2,978.7
|
Debt
securities held-to-maturity, at amortized cost
|
3,916.5
|
3,848.6
|
3,869.2
|
3,805.4
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
267.1
|
298.3
|
341.1
|
334.0
|
Total securities
|
8,269.9
|
8,233.0
|
7,789.9
|
7,135.2
|
Loans
held-for-sale
|
21.4
|
12.2
|
511.3
|
24.8
|
Loans:
|
|
|
|
|
Commercial and
industrial (1)
|
15,295.0
|
14,593.9
|
11,041.6
|
10,545.9
|
Commercial
real estate (1)
|
13,713.3
|
13,999.5
|
14,762.3
|
12,186.9
|
Equipment
financing
|
4,887.6
|
4,880.1
|
4,910.4
|
4,735.6
|
Total Commercial Portfolio
|
33,895.9
|
33,473.5
|
30,714.3
|
27,468.4
|
Residential
mortgage
|
9,095.6
|
9,623.7
|
10,318.1
|
9,308.7
|
Home equity
and other consumer
|
2,239.1
|
2,354.3
|
2,563.7
|
2,004.3
|
Total Retail Portfolio
|
11,334.7
|
11,978.0
|
12,881.8
|
11,313.0
|
Total loans
|
45,230.6
|
45,451.5
|
43,596.1
|
38,781.4
|
Less allowance
for credit losses
|
(423.8)
|
(414.0)
|
(246.6)
|
(246.0)
|
Total loans, net
|
44,806.8
|
45,037.5
|
43,349.5
|
38,535.4
|
Goodwill and other
acquisition-related intangible assets
|
3,243.5
|
3,253.7
|
3,274.6
|
3,064.9
|
Bank-owned life
insurance
|
710.5
|
708.1
|
705.0
|
505.6
|
Premises and
equipment, net
|
281.3
|
285.7
|
305.5
|
258.5
|
Other
assets
|
2,482.4
|
2,500.2
|
1,853.0
|
1,754.4
|
Total assets
|
$
60,871.2
|
$
61,509.7
|
$
58,589.8
|
$
52,071.8
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
14,101.9
|
$
13,656.9
|
$
9,803.7
|
$
9,129.3
|
Savings
|
5,846.3
|
5,759.4
|
4,987.7
|
4,616.6
|
Interest-bearing checking and money market
|
23,361.8
|
22,943.6
|
19,592.6
|
16,727.2
|
Time
|
6,326.5
|
7,574.4
|
9,205.5
|
8,100.4
|
Total deposits
|
49,636.5
|
49,934.3
|
43,589.5
|
38,573.5
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
579.8
|
1,289.7
|
3,125.4
|
2,948.5
|
Customer
repurchase agreements
|
432.5
|
342.1
|
409.1
|
315.6
|
Federal funds
purchased
|
225.0
|
150.0
|
1,620.0
|
1,365.0
|
Total borrowings
|
1,237.3
|
1,781.8
|
5,154.5
|
4,629.1
|
Notes and
debentures
|
1,012.0
|
1,014.5
|
993.1
|
915.7
|
Other
liabilities
|
1,153.9
|
1,016.1
|
905.5
|
822.8
|
Total liabilities
|
53,039.7
|
53,746.7
|
50,642.6
|
44,941.1
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
244.1
|
Common
stock
|
5.3
|
5.3
|
5.3
|
4.9
|
Additional paid-in
capital
|
7,657.3
|
7,651.2
|
7,639.4
|
6,901.5
|
Retained
earnings
|
1,589.1
|
1,524.6
|
1,512.8
|
1,449.3
|
Accumulated other
comprehensive loss
|
(77.9)
|
(73.9)
|
(166.9)
|
(182.3)
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(117.4)
|
(119.3)
|
(122.9)
|
(124.7)
|
Treasury stock, at
cost
|
(1,469.0)
|
(1,469.0)
|
(1,164.6)
|
(1,162.1)
|
Total stockholders' equity
|
7,831.5
|
7,763.0
|
7,947.2
|
7,130.7
|
Total liabilities and stockholders' equity
|
$
60,871.2
|
$
61,509.7
|
$
58,589.8
|
$
52,071.8
|
|
|
|
|
|
(1) In connection
with the United Bank core system conversion in April 2020,
approximately $400 million of loans secured
|
by owner-occupied commercial
properties were prospectively reclassified, at that time, from
commercial real estate loans
|
to commercial and industrial
loans. Prior period loan balances were not restated to conform to
the current presentation.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
(in millions, except
per common share data)
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate (1)
|
$
110.5
|
|
$
122.4
|
|
$
149.6
|
|
$
147.2
|
|
$
136.6
|
Commercial and
industrial (1)
|
110.7
|
|
112.4
|
|
106.4
|
|
114.9
|
|
113.4
|
Equipment
financing
|
65.4
|
|
67.6
|
|
68.2
|
|
66.7
|
|
65.3
|
Residential
mortgage
|
82.1
|
|
84.8
|
|
90.4
|
|
88.2
|
|
84.7
|
Home equity
and other consumer
|
19.9
|
|
20.1
|
|
28.0
|
|
30.8
|
|
24.7
|
Total interest on loans
|
388.6
|
|
407.3
|
|
442.6
|
|
447.8
|
|
424.7
|
Securities
|
47.5
|
|
49.8
|
|
51.2
|
|
47.8
|
|
44.7
|
Short-term
investments
|
0.4
|
|
0.2
|
|
2.0
|
|
1.0
|
|
1.3
|
Loans
held-for-sale
|
0.3
|
|
0.3
|
|
3.3
|
|
0.3
|
|
0.2
|
Total interest and dividend income
|
436.8
|
|
457.6
|
|
499.1
|
|
496.9
|
|
470.9
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
36.5
|
|
41.7
|
|
78.9
|
|
86.9
|
|
92.2
|
Borrowings
|
1.5
|
|
2.0
|
|
15.4
|
|
18.5
|
|
21.5
|
Notes and
debentures
|
7.4
|
|
8.3
|
|
8.8
|
|
8.8
|
|
8.5
|
Total interest expense
|
45.4
|
|
52.0
|
|
103.1
|
|
114.2
|
|
122.2
|
Net interest income
|
391.4
|
|
405.6
|
|
396.0
|
|
382.7
|
|
348.7
|
Provision for credit
losses on loans (2)
|
27.1
|
|
80.8
|
|
33.5
|
|
7.3
|
|
7.8
|
Provision for credit
losses on securities (2)
|
(0.3)
|
|
-
|
|
-
|
|
-
|
|
-
|
Net interest income after provision for credit losses
|
364.6
|
|
324.8
|
|
362.5
|
|
375.4
|
|
340.9
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
24.5
|
|
20.3
|
|
28.0
|
|
28.9
|
|
27.0
|
Investment
management fees
|
18.8
|
|
17.4
|
|
18.1
|
|
19.3
|
|
19.9
|
Commercial
banking lending fees
|
12.7
|
|
10.6
|
|
12.1
|
|
12.9
|
|
11.8
|
Operating
lease income
|
12.4
|
|
11.8
|
|
12.6
|
|
12.7
|
|
12.9
|
Insurance
revenue
|
9.7
|
|
9.0
|
|
10.9
|
|
7.5
|
|
10.3
|
Cash
management fees
|
8.8
|
|
8.1
|
|
7.4
|
|
7.1
|
|
7.3
|
Customer
interest rate swap income, net
|
1.2
|
|
2.7
|
|
8.8
|
|
8.5
|
|
5.5
|
Other
non-interest income (3)
|
13.0
|
|
9.7
|
|
25.9
|
|
27.3
|
|
11.3
|
Total non-interest income
|
101.1
|
|
89.6
|
|
123.8
|
|
124.2
|
|
106.0
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
166.5
|
|
167.8
|
|
173.9
|
|
171.4
|
|
158.1
|
Occupancy and
equipment
|
49.1
|
|
48.0
|
|
51.0
|
|
52.2
|
|
45.0
|
Professional
and outside services
|
24.1
|
|
25.7
|
|
38.5
|
|
29.6
|
|
23.7
|
Amortization
of other acquisition-related intangible assets
|
10.2
|
|
10.2
|
|
10.7
|
|
9.8
|
|
8.0
|
Operating
lease expense
|
9.3
|
|
8.8
|
|
9.8
|
|
9.6
|
|
9.9
|
Regulatory
assessments
|
8.4
|
|
8.7
|
|
8.7
|
|
7.3
|
|
5.3
|
Other
non-interest expense
|
26.0
|
|
34.8
|
|
27.5
|
|
45.8
|
|
31.4
|
Total non-interest expense (3)
|
293.6
|
|
304.0
|
|
320.1
|
|
325.7
|
|
281.4
|
Income before income tax expense
|
172.1
|
|
110.4
|
|
166.2
|
|
173.9
|
|
165.5
|
Income tax
expense
|
27.5
|
|
20.5
|
|
35.8
|
|
36.4
|
|
30.4
|
Net income
|
144.6
|
|
89.9
|
|
130.4
|
|
137.5
|
|
135.1
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
Net income available to common shareholders
|
$
141.1
|
|
$
86.4
|
|
$
126.9
|
|
$
134.0
|
|
$
131.6
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.34
|
|
$
0.21
|
|
$
0.30
|
|
$
0.31
|
|
$
0.34
|
Diluted
|
0.34
|
|
0.21
|
|
0.30
|
|
0.31
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
(1) In connection
with the United Bank core system conversion in April 2020,
approximately $400 million of loans secured by
|
owner-occupied commercial
properties were prospectively reclassified, at that time, from
commercial real estate loans to
|
commercial and industrial
loans. Prior period interest income amounts were not restated to
conform to the current presentation.
|
(2) Provision for
credit losses in 2020 reflects the application of the CECL standard
and the impact of COVID-19.
|
(3) 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 $4.6 million, $18.5 million, $17.9 million, $39.1
million and $5.0 million of non-operating
|
expenses for the three
months ended September 30, 2020, June 30, 2020, March 31, 2020,
December 31, 2019 and
|
September 30, 2019,
respectively. See Non-GAAP Financial Measures and
Reconciliation to GAAP.
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30,
|
(in millions, except
per common share data)
|
2020
|
|
2019
|
Interest and
dividend income:
|
|
|
|
Commercial
real estate
|
$
382.5
|
|
$
409.2
|
Commercial and
industrial
|
329.5
|
|
328.7
|
Equipment
financing
|
201.2
|
|
187.0
|
Residential
mortgage
|
257.3
|
|
240.9
|
Home equity
and other consumer
|
68.0
|
|
75.4
|
Total interest on loans
|
1,238.5
|
|
1,241.2
|
Securities
|
148.5
|
|
138.7
|
Loans
held-for-sale
|
3.9
|
|
0.6
|
Short-term
investments
|
2.6
|
|
3.8
|
Total interest and dividend income
|
1,393.5
|
|
1,384.3
|
Interest
expense:
|
|
|
|
Deposits
|
157.1
|
|
270.0
|
Borrowings
|
18.9
|
|
58.6
|
Notes and
debentures
|
24.5
|
|
26.1
|
Total interest expense
|
200.5
|
|
354.7
|
Net interest income
|
1,193.0
|
|
1,029.6
|
Provision for credit
losses on loans (1)
|
141.4
|
|
21.0
|
Provision for credit
losses on securities (1)
|
(0.3)
|
|
-
|
Net interest income after provision for credit losses
|
1,051.9
|
|
1,008.6
|
Non-interest
income:
|
|
|
|
Bank service
charges
|
72.8
|
|
78.6
|
Investment
management fees
|
54.3
|
|
58.9
|
Operating
lease income
|
36.8
|
|
38.1
|
Commercial
banking lending fees
|
35.4
|
|
29.8
|
Insurance
revenue
|
29.6
|
|
29.5
|
Cash
management fees
|
24.3
|
|
21.2
|
Customer
interest rate swap income, net
|
12.7
|
|
16.2
|
Other
non-interest income
|
48.6
|
|
34.6
|
Total non-interest income
|
314.5
|
|
306.9
|
Non-interest
expense:
|
|
|
|
Compensation
and benefits
|
508.2
|
|
474.8
|
Occupancy and
equipment
|
148.1
|
|
133.7
|
Professional
and outside services
|
88.3
|
|
68.6
|
Amortization
of other acquisition-related intangible assets
|
31.1
|
|
22.7
|
Operating
lease expense
|
27.9
|
|
29.2
|
Regulatory
assessments
|
25.8
|
|
18.8
|
Other
non-interest expense
|
88.3
|
|
89.2
|
Total non-interest expense (2)
|
917.7
|
|
837.0
|
Income before income tax expense
|
448.7
|
|
478.5
|
Income tax
expense
|
83.8
|
|
95.5
|
Net income
|
364.9
|
|
383.0
|
Preferred stock
dividend
|
10.5
|
|
10.5
|
Net income available to common shareholders
|
$
354.4
|
|
$
372.5
|
|
|
|
|
Earnings per common
share:
|
|
|
|
Basic
|
$
0.84
|
|
$
0.97
|
Diluted
|
0.84
|
|
0.96
|
|
|
|
|
(1) Provision for
credit losses in 2020 reflects the application of the CECL standard
and the
|
impact of
COVID-19.
|
|
|
|
(2) Total
non-interest expense includes $41.0 million and $26.5 million of
non-operating expenses for
|
the nine months ended
September 30, 2020 and 2019, respectively. See Non-GAAP
Financial
|
Measures and
Reconciliation to GAAP.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
June 30,
2020
|
|
September 30,
2019
|
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
|
$
841.5
|
$
0.4
|
0.19%
|
|
$
774.0
|
$
0.2
|
0.14%
|
|
$
218.7
|
$
1.3
|
2.33%
|
Securities
(2)
|
7,922.4
|
52.5
|
2.65
|
|
8,240.4
|
54.8
|
2.66
|
|
7,041.3
|
49.4
|
2.80
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
13,853.1
|
110.5
|
3.19
|
|
14,095.2
|
122.4
|
3.48
|
|
12,194.8
|
136.6
|
4.48
|
Commercial and
industrial
|
14,419.8
|
113.0
|
3.13
|
|
13,895.6
|
114.8
|
3.30
|
|
10,059.2
|
116.0
|
4.61
|
Equipment
financing
|
4,876.4
|
65.4
|
5.37
|
|
4,933.8
|
67.6
|
5.48
|
|
4,640.6
|
65.3
|
5.63
|
Residential
mortgage
|
9,408.0
|
82.4
|
3.51
|
|
9,821.4
|
85.1
|
3.46
|
|
9,392.7
|
84.9
|
3.62
|
Home equity
and other consumer
|
2,296.0
|
19.9
|
3.47
|
|
2,407.1
|
20.1
|
3.34
|
|
2,029.2
|
24.7
|
4.88
|
Total loans
|
44,853.3
|
391.2
|
3.49
|
|
45,153.1
|
410.0
|
3.63
|
|
38,316.5
|
427.5
|
4.46
|
Total earning assets
|
53,617.2
|
$ 444.1
|
3.31%
|
|
54,167.5
|
$ 465.0
|
3.43%
|
|
45,576.5
|
$ 478.2
|
4.20%
|
Other
assets
|
7,676.2
|
|
|
|
7,673.9
|
|
|
|
5,947.8
|
|
|
Total assets
|
$
61,293.4
|
|
|
|
$
61,841.4
|
|
|
|
$
51,524.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
13,753.8
|
$
-
|
- %
|
|
$
12,852.8
|
$
-
|
- %
|
|
$
8,777.3
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
28,970.0
|
16.4
|
0.23
|
|
27,402.5
|
17.0
|
0.25
|
|
21,758.5
|
53.4
|
0.98
|
Time
|
6,817.8
|
20.1
|
1.18
|
|
8,191.4
|
24.7
|
1.21
|
|
8,121.6
|
38.8
|
1.91
|
Total deposits
|
49,541.6
|
36.5
|
0.29
|
|
48,446.7
|
41.7
|
0.34
|
|
38,657.4
|
92.2
|
0.95
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
640.5
|
1.3
|
0.79
|
|
1,858.8
|
1.5
|
0.32
|
|
2,363.0
|
14.1
|
2.39
|
Customer
repurchase agreements
|
382.6
|
0.2
|
0.18
|
|
357.2
|
0.2
|
0.24
|
|
290.1
|
0.6
|
0.86
|
Federal funds
purchased
|
260.1
|
-
|
0.08
|
|
695.5
|
0.3
|
0.15
|
|
1,202.3
|
6.8
|
2.26
|
Total borrowings
|
1,283.2
|
1.5
|
0.46
|
|
2,911.5
|
2.0
|
0.27
|
|
3,855.4
|
21.5
|
2.23
|
Notes and
debentures
|
1,014.0
|
7.4
|
2.92
|
|
1,013.8
|
8.3
|
3.29
|
|
913.8
|
8.5
|
3.73
|
Total funding liabilities
|
51,838.8
|
$
45.4
|
0.35%
|
|
52,372.0
|
$
52.0
|
0.40%
|
|
43,426.6
|
$ 122.2
|
1.13%
|
Other
liabilities
|
1,653.3
|
|
|
|
1,712.6
|
|
|
|
1,019.1
|
|
|
Total liabilities
|
53,492.1
|
|
|
|
54,084.6
|
|
|
|
44,445.7
|
|
|
Stockholders'
equity
|
7,801.3
|
|
|
|
7,756.8
|
|
|
|
7,078.6
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
61,293.4
|
|
|
|
$
61,841.4
|
|
|
|
$
51,524.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 398.7
|
2.96%
|
|
|
$ 413.0
|
3.03%
|
|
|
$ 356.0
|
3.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.97%
|
|
|
|
3.05%
|
|
|
|
3.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $7.3 million, $7.4 million and $7.3
million for the three months ended
|
|
September 30, 2020,
June 30, 2020 and September 30, 2019, respectively.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
September 30,
2019
|
Nine months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
635.9
|
$
2.6
|
0.55%
|
|
$
211.9
|
$
3.8
|
2.37%
|
Securities
(2)
|
8,061.0
|
163.3
|
2.70
|
|
7,165.4
|
152.6
|
2.84
|
Loans:
|
|
|
|
|
|
|
|
Commercial
real estate
|
14,219.8
|
382.5
|
3.59
|
|
12,037.6
|
409.2
|
4.53
|
Commercial and
industrial
|
13,065.7
|
337.6
|
3.44
|
|
9,561.1
|
336.6
|
4.69
|
Equipment
financing
|
4,908.5
|
201.2
|
5.47
|
|
4,504.1
|
187.0
|
5.54
|
Residential
mortgage
|
9,820.4
|
258.0
|
3.50
|
|
9,077.5
|
241.5
|
3.55
|
Home equity
and other consumer
|
2,475.7
|
70.7
|
3.81
|
|
2,029.1
|
75.4
|
4.95
|
Total loans
|
44,490.1
|
1,250.0
|
3.75
|
|
37,209.4
|
1,249.7
|
4.48
|
Total earning assets
|
53,187.0
|
$ 1,415.9
|
3.55%
|
|
44,586.7
|
$
1,406.1
|
4.20%
|
Other
assets
|
7,395.1
|
|
|
|
5,564.3
|
|
|
Total assets
|
$
60,582.1
|
|
|
|
$
50,151.0
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
12,233.7
|
$
-
|
- %
|
|
$
8,563.2
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
and money market
|
27,111.2
|
77.5
|
0.38
|
|
21,708.6
|
159.6
|
0.98
|
Time
|
8,046.8
|
79.6
|
1.32
|
|
7,842.4
|
110.4
|
1.88
|
Total deposits
|
47,391.7
|
157.1
|
0.44
|
|
38,114.2
|
270.0
|
0.94
|
Borrowings:
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
1,639.6
|
12.6
|
1.02
|
|
2,034.1
|
38.7
|
2.54
|
Federal funds
purchased
|
847.7
|
5.4
|
0.85
|
|
1,005.6
|
18.2
|
2.41
|
Customer
repurchase agreements
|
356.0
|
0.9
|
0.35
|
|
272.1
|
1.6
|
0.76
|
Other
borrowings
|
-
|
-
|
-
|
|
4.4
|
0.1
|
1.86
|
Total borrowings
|
2,843.3
|
18.9
|
0.89
|
|
3,316.2
|
58.6
|
2.35
|
Notes and
debentures
|
1,009.1
|
24.5
|
3.24
|
|
904.7
|
26.1
|
3.85
|
Total funding liabilities
|
51,244.1
|
$
200.5
|
0.52%
|
|
42,335.1
|
$
354.7
|
1.12%
|
Other
liabilities
|
1,550.5
|
|
|
|
941.0
|
|
|
Total liabilities
|
52,794.6
|
|
|
|
43,276.1
|
|
|
Stockholders'
equity
|
7,787.5
|
|
|
|
6,874.9
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
60,582.1
|
|
|
|
$
50,151.0
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 1,215.4
|
3.03%
|
|
|
$
1,051.4
|
3.08%
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.05%
|
|
|
|
3.14%
|
|
|
|
|
|
|
|
|
(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 $22.4 million and $21.8 million for the
nine months
|
ended September 30,
2020 and 2019, respectively.
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a result of
adopting the CECL standard on January 1, 2020, People's United's
prior distinction between the originated loan portfolio and the acquired loan portfolio is no
longer necessary. Accordingly, prior period disclosures have been
revised to conform to the current
period presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
85.3
|
$
|
73.6
|
$
|
53.5
|
$
|
53.8
|
$
|
28.6
|
|
Commercial and
industrial
|
|
86.7
|
|
88.8
|
|
55.6
|
|
38.5
|
|
39.0
|
|
Equipment
financing
|
|
49.0
|
|
48.6
|
|
42.5
|
|
47.7
|
|
43.2
|
|
Total Commercial
|
|
221.0
|
|
211.0
|
|
151.6
|
|
140.0
|
|
110.8
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
62.9
|
|
62.6
|
|
66.6
|
|
63.3
|
|
48.8
|
|
Home
equity
|
|
22.1
|
|
22.5
|
|
22.1
|
|
20.8
|
|
16.7
|
|
Other
consumer
|
|
0.2
|
|
0.1
|
|
0.1
|
|
-
|
|
0.1
|
|
Total Retail
|
|
85.2
|
|
85.2
|
|
88.8
|
|
84.1
|
|
65.6
|
|
Total non-accrual loans (1)
|
|
306.2
|
|
296.2
|
|
240.4
|
|
224.1
|
|
176.4
|
|
Real estate
owned:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
3.6
|
|
7.3
|
|
7.3
|
|
7.3
|
|
7.7
|
|
Residential
|
|
1.9
|
|
4.9
|
|
9.5
|
|
11.9
|
|
12.3
|
|
Total real estate owned
|
|
5.5
|
|
12.2
|
|
9.5
|
|
11.9
|
|
12.3
|
|
Repossessed
assets
|
|
9.7
|
|
6.2
|
|
4.6
|
|
4.2
|
|
6.3
|
|
Total non-performing assets
|
$
|
321.4
|
$
|
314.6
|
$
|
254.5
|
$
|
240.2
|
$
|
195.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans as
a percentage of total loans
|
|
0.68
|
%
|
0.65
|
%
|
0.54
|
%
|
0.51
|
%
|
0.45
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans,
real estate owned and repossessed assets
|
|
0.71
|
|
0.69
|
|
0.59
|
|
0.57
|
|
0.52
|
|
Tangible
stockholders' equity and allowance
|
|
|
|
|
|
|
|
|
|
|
|
for credit losses
|
|
6.41
|
|
6.39
|
|
5.45
|
|
5.03
|
|
4.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $2.4 million at September 30, 2020,
$2.9 million at June 30, 2020,
|
|
$1.2 million at March
31, 2020, $1.3 million at December 31, 2019 and $1.4 million at
September 30, 2019.
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Sept 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
Allowance for
credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
414.0
|
$
|
341.7
|
$
|
246.6
|
$
|
246.0
|
$
|
244.0
|
|
Charge-offs
|
|
(19.3)
|
|
(10.3)
|
|
(12.6)
|
|
(8.5)
|
|
(8.2)
|
|
Recoveries
|
|
2.0
|
|
1.8
|
|
2.0
|
|
1.8
|
|
2.4
|
|
Net loan charge-offs
|
|
(17.3)
|
|
(8.5)
|
|
(10.6)
|
|
(6.7)
|
|
(5.8)
|
|
Provision for
credit losses
|
|
27.1
|
|
80.8
|
|
33.5
|
|
7.3
|
|
7.8
|
|
CECL
transition adjustment
|
|
-
|
|
-
|
|
72.2
|
|
N/A
|
|
N/A
|
|
Balance at end of period
|
$
|
423.8
|
$
|
414.0
|
$
|
341.7
|
$
|
246.6
|
$
|
246.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.94
|
%
|
0.91
|
%
|
0.77
|
%
|
0.57
|
%
|
0.63
|
%
|
Non-accrual loans
|
|
138.4
|
|
139.8
|
|
142.2
|
|
110.0
|
|
139.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A - not
applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
4.1
|
$
|
1.8
|
$
|
3.4
|
$
|
(0.1)
|
$
|
(0.2)
|
|
Commercial and
industrial
|
|
6.9
|
|
-
|
|
1.0
|
|
2.3
|
|
1.6
|
|
Equipment
financing
|
|
6.2
|
|
5.2
|
|
3.9
|
|
4.2
|
|
4.2
|
|
Total
|
|
17.2
|
|
7.0
|
|
8.3
|
|
6.4
|
|
5.6
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
(0.2)
|
|
-
|
|
0.8
|
|
(0.2)
|
|
-
|
|
Home
equity
|
|
-
|
|
0.6
|
|
0.1
|
|
0.3
|
|
-
|
|
Other
consumer
|
|
0.3
|
|
0.9
|
|
1.4
|
|
0.2
|
|
0.2
|
|
Total
|
|
0.1
|
|
1.5
|
|
2.3
|
|
0.3
|
|
0.2
|
|
Total net loan charge-offs
|
$
|
17.3
|
$
|
8.5
|
$
|
10.6
|
$
|
6.7
|
$
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.15
|
%
|
0.08
|
%
|
0.10
|
%
|
0.06
|
%
|
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.
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.
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net
revenue is a useful financial measure as it enables an assessment
of the Company's ability to generate earnings to cover credit losses through a credit
cycle as well as providing an additional basis for comparing the
Company's results of operation
between periods by isolating the impact of the provision for credit
losses, which can vary significantly between periods.
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2020
|
|
2019
|
Total non-interest
expense
|
|
$
293.6
|
|
$
304.0
|
|
$
320.1
|
|
$
325.7
|
|
$
281.4
|
|
$
917.7
|
|
$
837.0
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(4.6)
|
|
(18.5)
|
|
(17.9)
|
|
(22.6)
|
|
(5.0)
|
|
(41.0)
|
|
(26.5)
|
Intangible
asset write-down
|
|
-
|
|
-
|
|
-
|
|
(16.5)
|
|
-
|
|
-
|
|
-
|
Total
|
|
(4.6)
|
|
(18.5)
|
|
(17.9)
|
|
(39.1)
|
|
(5.0)
|
|
(41.0)
|
|
(26.5)
|
Operating non-interest expense
|
|
289.0
|
|
285.5
|
|
302.2
|
|
286.6
|
|
276.4
|
|
876.7
|
|
810.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of other acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(10.2)
|
|
(10.2)
|
|
(10.7)
|
|
(9.8)
|
|
(8.0)
|
|
(31.1)
|
|
(22.7)
|
Operating
lease expense
|
|
(9.3)
|
|
(8.8)
|
|
(9.8)
|
|
(9.6)
|
|
(9.9)
|
|
(27.9)
|
|
(29.2)
|
Other
(1)
|
|
(5.1)
|
|
(1.9)
|
|
(1.9)
|
|
(1.6)
|
|
(1.4)
|
|
(8.9)
|
|
(4.6)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
264.4
|
|
$
264.6
|
|
$
279.8
|
|
$
265.6
|
|
$
257.1
|
|
$
808.8
|
|
$
754.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
398.7
|
|
$
413.0
|
|
$
403.7
|
|
$
390.3
|
|
$
356.0
|
|
$
1,215.4
|
|
$
1,051.4
|
Total non-interest
income
|
|
101.1
|
|
89.6
|
|
123.8
|
|
124.2
|
|
106.0
|
|
314.5
|
|
306.9
|
Total revenues
|
|
499.8
|
|
502.6
|
|
527.5
|
|
514.5
|
|
462.0
|
|
1,529.9
|
|
1,358.3
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(9.3)
|
|
(8.8)
|
|
(9.8)
|
|
(9.6)
|
|
(9.9)
|
|
(27.9)
|
|
(29.2)
|
BOLI FTE
adjustment
|
|
0.8
|
|
1.0
|
|
0.8
|
|
0.7
|
|
0.5
|
|
2.6
|
|
1.8
|
Gain on sale
of branches, net of expenses
|
-
|
|
-
|
|
-
|
|
(7.6)
|
|
-
|
|
-
|
|
-
|
Net security
gains
|
|
-
|
|
-
|
|
-
|
|
(0.1)
|
|
-
|
|
-
|
|
(0.1)
|
Other
(2)
|
|
(0.1)
|
|
-
|
|
(0.3)
|
|
(3.2)
|
|
0.1
|
|
(0.4)
|
|
0.4
|
Total revenues for efficiency ratio
|
|
$
491.2
|
|
$
494.8
|
|
$
518.2
|
|
$
494.7
|
|
$
452.7
|
|
$
1,504.2
|
|
$
1,331.2
|
Efficiency ratio
|
|
53.8%
|
|
53.5%
|
|
54.0%
|
|
53.7%
|
|
56.8%
|
|
53.8%
|
|
56.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRE-PROVISION NET
REVENUE
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2020
|
|
2019
|
Net interest
income
|
|
$
391.4
|
|
$
405.6
|
|
$
396.0
|
|
$
382.7
|
|
$
348.7
|
|
$
1,193.0
|
|
$
1,029.6
|
Non-interest
income
|
|
101.1
|
|
89.6
|
|
123.8
|
|
124.2
|
|
106.0
|
|
314.5
|
|
306.9
|
Non-interest
expense
|
|
(293.6)
|
|
(304.0)
|
|
(320.1)
|
|
(325.7)
|
|
(281.4)
|
|
(917.7)
|
|
(837.0)
|
Pre-provision net revenue
|
|
198.9
|
|
191.2
|
|
199.7
|
|
181.2
|
|
173.3
|
|
589.8
|
|
499.5
|
Non-operating
income
|
|
-
|
|
-
|
|
-
|
|
(7.6)
|
|
-
|
|
-
|
|
-
|
Non-operating
expense
|
|
4.6
|
|
18.5
|
|
17.9
|
|
39.1
|
|
5.0
|
|
41.0
|
|
26.5
|
Operating pre-provision net revenue
|
|
$
203.5
|
|
$
209.7
|
|
$
217.6
|
|
$
212.7
|
|
$
178.3
|
|
$
630.8
|
|
$
526.0
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in millions,
except per common share data)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2020 (1)
|
|
2019
|
Net income available
to common shareholders
|
|
$
141.1
|
|
$
86.4
|
|
$
126.9
|
|
$
134.0
|
|
$
131.6
|
|
$
354.4
|
|
$
372.5
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
4.6
|
|
18.5
|
|
17.9
|
|
22.6
|
|
5.0
|
|
41.0
|
|
26.5
|
Intangible
asset write-down
|
|
-
|
|
-
|
|
-
|
|
16.5
|
|
-
|
|
-
|
|
-
|
Gain on sale
of branches, net of expenses
|
|
-
|
|
-
|
|
-
|
|
(7.6)
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
4.6
|
|
18.5
|
|
17.9
|
|
31.5
|
|
5.0
|
|
41.0
|
|
26.5
|
Tax
effect
|
|
(1.0)
|
|
(3.9)
|
|
(3.7)
|
|
(6.7)
|
|
(1.1)
|
|
(8.6)
|
|
(5.6)
|
Total adjustments, net of tax
|
|
3.6
|
|
14.6
|
|
14.2
|
|
24.8
|
|
3.9
|
|
32.4
|
|
20.9
|
Operating earnings
|
|
$
144.7
|
|
$
101.0
|
|
$
141.1
|
|
$
158.8
|
|
$
135.5
|
|
$
386.8
|
|
$
393.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.34
|
|
$
0.21
|
|
$
0.30
|
|
$
0.31
|
|
$
0.33
|
|
$
0.84
|
|
$
0.96
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
-
|
|
0.03
|
|
0.03
|
|
0.04
|
|
0.01
|
|
0.07
|
|
0.05
|
Intangible
asset write-down
|
|
-
|
|
-
|
|
-
|
|
0.03
|
|
-
|
|
-
|
|
-
|
Gain on sale
of branches, net of expenses
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
-
|
|
-
|
Total adjustments per common share
|
|
-
|
|
0.03
|
|
0.03
|
|
0.06
|
|
0.01
|
|
0.07
|
|
0.05
|
Operating EPS
|
|
$
0.34
|
|
$
0.24
|
|
$
0.33
|
|
$
0.37
|
|
$
0.34
|
|
$
0.91
|
|
$
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 61,293
|
|
$ 61,841
|
|
$ 58,603
|
|
$ 56,130
|
|
$ 51,524
|
|
$ 60,582
|
|
$ 50,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
0.94%
|
|
0.65%
|
|
0.96%
|
|
1.13%
|
|
1.05%
|
|
0.85%
|
|
1.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The sum of the
quarterly amounts for certain line items may not equal the nine
months amounts due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2020
|
|
2019
|
Operating
earnings
|
|
$
144.7
|
|
$
101.0
|
|
$
141.1
|
|
$
158.8
|
|
$
135.5
|
|
$
386.8
|
|
$
393.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
7,801
|
|
$
7,757
|
|
$
7,804
|
|
$
7,654
|
|
$
7,079
|
|
$
7,788
|
|
$
6,875
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
7,557
|
|
7,513
|
|
7,560
|
|
7,410
|
|
6,835
|
|
7,544
|
|
6,631
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,249
|
|
3,259
|
|
3,269
|
|
3,226
|
|
3,069
|
|
3,259
|
|
3,005
|
Average tangible
common equity
|
|
$
4,308
|
|
$
4,254
|
|
$
4,291
|
|
$
4,184
|
|
$
3,766
|
|
$
4,285
|
|
$
3,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
13.4%
|
|
9.5%
|
|
13.2%
|
|
15.2%
|
|
14.4%
|
|
12.0%
|
|
14.5%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2020
|
|
2019
|
Common dividends
paid
|
|
$
75.7
|
|
$
75.5
|
|
$
77.3
|
|
$
69.9
|
|
$
69.9
|
|
$
228.5
|
|
$
204.9
|
Operating
earnings
|
|
$
144.7
|
|
$
101.0
|
|
$
141.1
|
|
$
158.8
|
|
$
135.5
|
|
$
386.8
|
|
$
393.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
52.3%
|
|
74.8%
|
|
54.8%
|
|
44.0%
|
|
51.6%
|
|
59.1%
|
|
52.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
Total stockholders'
equity
|
|
$
7,831
|
|
$
7,763
|
|
$
7,726
|
|
$
7,947
|
|
$
7,131
|
|
|
|
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
|
|
|
Common
equity
|
|
7,587
|
|
7,519
|
|
7,482
|
|
7,703
|
|
6,887
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,244
|
|
3,254
|
|
3,264
|
|
3,275
|
|
3,065
|
|
|
|
|
Tangible common
equity
|
|
$
4,343
|
|
$
4,265
|
|
$
4,218
|
|
$
4,428
|
|
$
3,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 60,871
|
|
$ 61,510
|
|
$ 60,433
|
|
$ 58,590
|
|
$ 52,072
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,244
|
|
3,254
|
|
3,264
|
|
3,275
|
|
3,065
|
|
|
|
|
Tangible
assets
|
|
$ 57,627
|
|
$ 58,256
|
|
$ 57,169
|
|
$ 55,315
|
|
$ 49,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.5%
|
|
7.3%
|
|
7.4%
|
|
8.0%
|
|
7.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
|
|
(in millions, except
per common share data)
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
Tangible common
equity
|
|
$
4,343
|
|
$
4,265
|
|
$
4,218
|
|
$
4,428
|
|
$
3,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
533.67
|
|
533.59
|
|
533.47
|
|
532.83
|
|
487.59
|
|
|
|
|
Less: Shares
classified as treasury shares
|
|
109.00
|
|
109.00
|
|
109.00
|
|
89.17
|
|
89.01
|
|
|
|
|
Common shares
oustanding
|
|
424.67
|
|
424.59
|
|
424.47
|
|
443.66
|
|
398.58
|
|
|
|
|
Less: Unallocated
ESOP shares
|
|
5.66
|
|
5.75
|
|
5.84
|
|
5.92
|
|
6.01
|
|
|
|
|
Common
shares
|
|
419.01
|
|
418.84
|
|
418.63
|
|
437.74
|
|
392.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
10.36
|
|
$
10.18
|
|
$
10.07
|
|
$
10.12
|
|
$
9.74
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-third-quarter-net-income-of-144-6-million-or-0-34-per-common-share-301158173.html
SOURCE People's United Financial, Inc.