BRIDGEPORT, Conn., Jan. 17, 2019 /PRNewswire/ -- People's
United Financial, Inc. (NASDAQ: PBCT) today reported results for
the fourth quarter and full year 2018. These results along with
comparison periods are summarized below:
($ in millions,
except per common share data)
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
2018
|
|
Sep. 30,
2018
|
|
Dec. 31,
2017
|
|
|
Dec. 31,
2018
|
|
Dec. 31,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
132.9
|
|
$
117.0
|
|
$
106.2
|
|
|
$
468.1
|
|
$
337.2
|
Net income
available
|
|
129.4
|
|
113.5
|
|
102.7
|
|
|
454.0
|
|
323.1
|
to common
shareholders
|
Per common
share
|
|
0.35
|
|
0.33
|
|
0.30
|
|
|
1.29
|
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings1
|
|
134.2
|
|
113.8
|
|
104.5
|
|
|
461.4
|
|
345.8
|
Per common
share
|
|
0.36
|
|
0.33
|
|
0.31
|
|
|
1.31
|
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
332.6
|
|
$
306.4
|
|
$
292.3
|
|
|
$
1,236.0
|
|
$
1,100.5
|
Net interest
margin
|
|
3.17%
|
|
3.15%
|
|
3.07%
|
|
|
3.12%
|
|
2.98%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
88.7
|
|
92.3
|
|
87.3
|
|
|
366.4
|
|
352.9
|
Operating
non-interest income1
|
|
98.7
|
|
92.3
|
|
97.3
|
|
|
376.4
|
|
362.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
$
262.7
|
|
$
241.3
|
|
$
239.7
|
|
|
$
996.1
|
|
$
960.3
|
Operating
non-interest expense1
|
|
254.7
|
|
240.8
|
|
238.1
|
|
|
984.7
|
|
929.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
55.1%
|
|
56.7%
|
|
56.1%
|
|
|
57.4%
|
|
57.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
35,016
|
|
$
32,166
|
|
$
32,271
|
|
|
$
32,854
|
|
$
31,265
|
Deposits
|
|
35,959
|
|
33,058
|
|
32,879
|
|
|
33,601
|
|
31,732
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
balances
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
35,241
|
|
32,199
|
|
32,575
|
|
|
|
|
|
Deposits
|
|
36,159
|
|
33,210
|
|
33,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 See
Non-GAAP Financial Measures and Reconciliation to GAAP.
|
"We are pleased with the advancements made in 2018 to further
build our franchise for the long-term with investments in revenue
producing initiatives and talent as well as enhancements to our
digital capabilities and technology infrastructure," said
Jack Barnes, Chairman and Chief
Executive Officer. "While making these important strategic
investments, we continued to strengthen the profitability of the
Company. Full year operating earnings of $461.4 million were up 33 percent from a year ago
despite loan growth headwinds. In addition, operating earnings per
common share of $1.31 increased for
the ninth consecutive year. We also remain focused on balancing
organic growth with thoughtful M&A. The integration of First
Connecticut continues to progress extremely well and we were
excited to announce in November the acquisition of BSB Bancorp,
which will deepen our presence in the Greater Boston area. Consistent with this
strategy, we disclosed today the all-cash acquisition of VAR
Technology Finance, which focuses on serving the technology sector
and is ranked among the top independent, privately held equipment
finance companies nationwide for new business volume. Similar to
our recent equipment financing acquisitions, this transaction
further deepens the Company's network of specialty finance experts
and bolsters our nationwide businesses. Looking ahead to 2019, we
are excited about realizing on the opportunities across our diverse
portfolio of businesses, deepening customer relationships and
delivering value to shareholders."
"Our fourth quarter financial performance resulted in a strong
finish to the year as evidenced by another quarter of record
earnings, an operating return on average tangible common equity of
15.5 percent and a 160 basis point improvement in the efficiency
ratio compared to the third quarter," said David Rosato, Senior Executive Vice President
and Chief Financial Officer. "Operating earnings of $134.2 million increased 18 percent
linked-quarter and benefited from the First Connecticut acquisition
and further net interest margin expansion. The quarter was also
favorably impacted by a lower effective tax rate which reflected
discrete tax benefits associated with certain tax-advantaged
investments as well as a benefit realized in connection with tax
reform. Excluding the addition of First Connecticut, period-end
loan and deposit balances grew one percent and two percent,
respectively, from September
30th. Loan growth benefited from strong
production in equipment financing as well as in our healthcare and
large corporate verticals. These results were partially offset by
lower mortgage warehouse lending balances and continued runoff of
the transactional portion of the New
York multifamily portfolio."
|
|
|
As of and for
the Three Months Ended
|
|
|
Dec. 31,
2018
|
|
Sep. 30,
2018
|
|
Dec. 31,
2017
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
|
0.09%
|
|
0.09%
|
|
0.08%
|
to average total
loans
|
Originated
non-performing loans
|
|
0.55%
|
|
0.53%
|
|
0.49%
|
as a percentage of
originated loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Returns
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets1
|
|
1.11%
|
|
1.06%
|
|
0.96%
|
Return on average
tangible common equity1
|
|
14.9%
|
|
14.5%
|
|
13.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
Tangible common
equity / tangible assets
|
|
7.6%
|
|
7.6%
|
|
7.2%
|
Tier 1
leverage
|
|
8.7%
|
|
8.7%
|
|
8.3%
|
Common equity tier
1
|
|
10.3%
|
|
10.3%
|
|
9.7%
|
Tier 1
risk-based
|
|
11.0%
|
|
11.1%
|
|
10.4%
|
Total
risk-based
|
|
12.6%
|
|
12.8%
|
|
12.2%
|
|
|
|
|
|
|
|
People's United Bank,
N.A.
|
|
|
|
|
|
|
Tier 1
leverage
|
|
9.0%
|
|
9.2%
|
|
8.5%
|
Common equity tier
1
|
|
11.4%
|
|
11.6%
|
|
10.7%
|
Tier 1
risk-based
|
|
11.4%
|
|
11.6%
|
|
10.7%
|
Total
risk-based
|
|
13.2%
|
|
13.6%
|
|
12.6%
|
|
|
|
|
|
|
|
1 See
Non-GAAP Financial Measures and Reconciliation to GAAP.
|
The Company's Board of Directors declared a $0.1750 per common share quarterly dividend
payable February 15, 2019 to
shareholders of record on February 1,
2019. Based on the closing stock price on January 16, 2019, the dividend yield on People's
United Financial common stock is 4.5 percent.
People's United Financial, Inc., a diversified financial
services company with $48 billion in
total assets, provides commercial and retail banking, as well as
wealth management services through a network of over 400 branches
in Connecticut, New York, Massachusetts, Vermont, New
Hampshire and Maine.
4Q 2018 Financial Highlights
Summary
- Net income totaled $132.9
million, or $0.35 per common
share.
-
- Net income available to common shareholders totaled
$129.4 million.
- Operating earnings totaled $134.2
million, or $0.36 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $332.6
million in 4Q18 compared to $306.4
million in 3Q18.
- Net interest margin increased two basis points from 3Q18 to
3.17% reflecting:
-
- Higher yields on the loan portfolio (increase of 17 basis
points).
- Higher yields on the securities portfolio (increase of one
basis point).
- Higher rates on deposits and borrowings (decrease of 16 basis
points).
- Provision for loan losses totaled $9.9
million.
-
- Net loan charge-offs totaled $7.5
million.
- Net loan charge-off ratio of 0.09% in 4Q18.
- Non-interest income totaled $88.7
million in 4Q18 compared to $92.3
million in 3Q18.
-
- Operating non-interest income totaled $98.7 million in 4Q18 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Customer interest rate swap income increased $3.5 million.
- Bank service charges increased $2.0
million.
- Commercial banking lending fees increased $1.7 million.
- Insurance revenue decreased $3.1
million.
- Net security losses of $10.0
million in 4Q18 incurred in response to a tax reform-related
benefit realized in the period (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- At December 31, 2018, assets
under administration totaled $23.2
billion, of which $8.6 billion
are under discretionary management, compared to $23.8 billion and $9.3
billion, respectively, at September
30, 2018.
- Non-interest expense totaled $262.7
million in 4Q18 compared to $241.3
million in 3Q18.
-
- Operating non-interest expense totaled $254.7 million in 4Q18 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $3.5 million of merger-related expenses,
increased $12.3 million, primarily
reflecting additional employees resulting from the First
Connecticut acquisition.
- Regulatory assessment expense decreased $2.6 million.
- Professional and outside services expense, excluding
$3.7 million and $0.4 million of merger-related expenses in 4Q18
and 3Q18, respectively, increased $1.1
million.
- Other non-interest expense includes merger-related expenses of
$0.2 million and $0.1 million in 4Q18 and 3Q18, respectively.
- The efficiency ratio was 55.1% for 4Q18 compared to 56.7% for
3Q18 and 56.1% for 4Q17 (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 10.6% for 4Q18 and 18.8% for
the full-year of 2018, compared to 27.8% for the full-year of 2017
(19.8% for 4Q17).
-
- The rates in 2018 reflect the benefit from a reduction in the
U.S. federal corporate income tax rate from 35% to 21%, effective
January 1, 2018, as well as a
$9.2 million benefit realized in
connection with tax reform. The rates in 2017 reflect a
$6.5 million benefit realized in
connection with tax reform (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
Commercial Banking
- Commercial loans totaled $25.1
billion at December 31, 2018,
an increase of $1.7 billion from
September 30, 2018.
-
- Organic loan growth of $292
million.
- The equipment financing portfolio increased $130 million from September 30, 2018.
- The mortgage warehouse portfolio decreased $80 million from September
30, 2018.
- The New York multifamily
portfolio decreased $79 million from
September 30, 2018.
- Average commercial loans totaled $24.8
billion in 4Q18, an increase of $1.5
billion from 3Q18.
-
- The average equipment financing portfolio increased
$122 million from 3Q18.
- The average mortgage warehouse portfolio decreased $142 million from 3Q18.
- The average New York
multifamily portfolio decreased $99
million from 3Q18.
- Commercial deposits totaled $13.1
billion at December 31, 2018
compared to $11.9 billion at
September 30, 2018.
- The ratio of originated non-performing commercial loans to
originated commercial loans was 0.52% at both December 31, 2018 and September 30, 2018.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $126.1
million at December 31, 2018
compared to $122.1 million at
September 30, 2018.
- For the originated commercial loan portfolio, the allowance for
loan losses as a percentage of loans was 0.93% at December 31, 2018 compared to 0.94% at
September 30, 2018.
- The originated commercial allowance for loan losses represented
181% of originated non-performing commercial loans at December 31, 2018 compared to 182% at
September 30, 2018.
Retail Banking
- Residential mortgage loans totaled $8.2
billion at December 31, 2018,
an increase of $1.2 billion from
September 30, 2018.
-
- Organic loan growth of $28
million.
- Average residential mortgage loans totaled $8.2 billion in 4Q18, an increase of $1.3 billion from 3Q18.
- Home equity loans totaled $2.0
billion at December 31, 2018,
an increase of $95 million from
September 30, 2018.
-
- Average home equity loans totaled $2.0
billion in 4Q18, an increase of $105
million from 3Q18.
- Retail deposits totaled $23.1
billion at December 31, 2018
compared to $21.3 billion at
September 30, 2018.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 0.57% at
December 31, 2018 compared to 0.48%
at September 30, 2018.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.85% at December 31, 2018 compared to 0.80% at
September 30, 2018.
Conference Call
On January 17, 2019, 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.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial completed its acquisition of First Connecticut Bancorp
effective October 1, 2018. Accordingly,
|
First Connecticut's
results of operations are included beginning with the effective
date, and prior period results have not
|
been restated to
include First Connecticut.
|
|
Three Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in millions,
except per common share data)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
Earnings
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
339.5
|
$
|
313.0
|
$
|
307.8
|
$
|
302.1
|
$
|
304.1
|
|
Net interest
income
|
|
332.6
|
|
306.4
|
|
301.2
|
|
295.8
|
|
292.3
|
|
Provision for
loan losses
|
|
9.9
|
|
8.2
|
|
6.5
|
|
5.4
|
|
7.5
|
|
Non-interest
income (1)
|
|
88.7
|
|
92.3
|
|
94.9
|
|
90.4
|
|
87.3
|
|
Non-interest
expense (1)
|
|
262.7
|
|
241.3
|
|
248.6
|
|
243.5
|
|
239.7
|
|
Income before
income tax expense
|
|
148.7
|
|
149.2
|
|
141.0
|
|
137.3
|
|
132.4
|
|
Net
income
|
|
132.9
|
|
117.0
|
|
110.2
|
|
107.9
|
|
106.2
|
|
Net income
available to common shareholders (1)
|
|
129.4
|
|
113.5
|
|
106.7
|
|
104.4
|
|
102.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (2)
|
|
3.17
|
%
|
3.15
|
%
|
3.10
|
%
|
3.05
|
%
|
3.07
|
%
|
Return on
average assets (1), (2)
|
|
1.11
|
|
1.06
|
|
1.00
|
|
0.98
|
|
0.96
|
|
Return on
average common equity (2)
|
|
8.3
|
|
8.0
|
|
7.6
|
|
7.5
|
|
7.4
|
|
Return on
average tangible common equity (1), (2)
|
|
14.9
|
|
14.5
|
|
13.9
|
|
13.8
|
|
13.8
|
|
Efficiency
ratio (1)
|
|
55.1
|
|
56.7
|
|
58.4
|
|
59.4
|
|
56.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.35
|
$
|
0.33
|
$
|
0.31
|
$
|
0.31
|
$
|
0.30
|
|
Diluted (1)
|
|
0.35
|
|
0.33
|
|
0.31
|
|
0.30
|
|
0.30
|
|
Dividends paid
per common share
|
|
0.1750
|
|
0.1750
|
|
0.1750
|
|
0.1725
|
|
0.1725
|
|
Common
dividend payout ratio (1)
|
|
50.3
|
%
|
52.9
|
%
|
56.2
|
%
|
56.3
|
%
|
57.1
|
%
|
Book value per
common share (end of period)
|
$
|
16.95
|
$
|
16.69
|
$
|
16.56
|
$
|
16.43
|
$
|
16.40
|
|
Tangible book
value per common share (end of period) (1)
|
9.23
|
|
9.19
|
|
9.02
|
|
8.93
|
|
8.87
|
|
Stock
price:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
17.46
|
|
19.00
|
|
19.37
|
|
20.26
|
|
19.50
|
|
Low
|
|
13.66
|
|
16.95
|
|
18.00
|
|
18.18
|
|
17.58
|
|
Close (end of period)
|
|
14.43
|
|
17.12
|
|
18.09
|
|
18.66
|
|
18.70
|
|
Common shares
(end of period) (in millions)
|
|
371.02
|
|
342.36
|
|
341.59
|
|
341.01
|
|
339.98
|
|
Weighted
average diluted common shares (in millions)
|
372.83
|
|
345.04
|
|
344.47
|
|
344.00
|
|
341.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 First Connecticut Bancorp
effective October 1, 2018.
|
Accordingly, First
Connecticut's results of operations are included beginning with the
effective date,
|
and prior period
results have not been restated to include First
Connecticut.
|
|
Twelve Months
Ended
|
|
December
31,
|
(dollars in millions,
except per common share data)
|
|
2018
|
|
2017
|
|
Earnings
Data:
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
1,262.4
|
$
|
1,143.2
|
|
Net interest
income
|
|
1,236.0
|
|
1,100.5
|
|
Provision for
loan losses
|
|
30.0
|
|
26.0
|
|
Non-interest
income (1)
|
|
366.4
|
|
352.9
|
|
Non-interest
expense (1)
|
|
996.1
|
|
960.3
|
|
Income before
income tax expense
|
|
576.3
|
|
467.1
|
|
Net
income
|
|
468.1
|
|
337.2
|
|
Net income
available to common shareholders (1)
|
|
454.0
|
|
323.1
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
Net interest
margin
|
|
3.12
|
%
|
2.98
|
%
|
Return on
average assets (1)
|
|
1.04
|
|
0.79
|
|
Return on
average common equity
|
|
7.8
|
|
6.0
|
|
Return on
average tangible common equity (1)
|
|
14.3
|
|
11.0
|
|
Efficiency
ratio (1)
|
|
57.4
|
|
57.7
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
Basic
|
$
|
1.30
|
$
|
0.97
|
|
Diluted (1)
|
|
1.29
|
|
0.97
|
|
Dividends paid
per common share
|
|
0.6975
|
|
0.6875
|
|
Common
dividend payout ratio (1)
|
|
53.7
|
%
|
70.6
|
%
|
Book value per
common share (end of period)
|
$
|
16.95
|
$
|
16.40
|
|
Tangible book
value per common share (end of period) (1)
|
|
9.23
|
|
8.87
|
|
Stock
price:
|
|
|
|
|
|
High
|
|
20.26
|
|
19.85
|
|
Low
|
|
13.66
|
|
15.97
|
|
Close (end of period)
|
|
14.43
|
|
18.70
|
|
Common shares
(end of period) (in millions)
|
|
371.02
|
|
339.98
|
|
Weighted
average diluted common shares (in millions)
|
|
351.66
|
|
332.36
|
|
|
|
|
|
|
|
(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 First Connecticut Bancorp
effective October 1, 2018. Accordingly,
|
First Connecticut's
results of operations are included beginning with the effective
date, and prior period results have not
|
been restated to
include First Connecticut.
|
|
As of and for the
Three Months Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March
31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
47,877
|
$
|
44,133
|
$
|
44,575
|
$
|
44,101
|
$
|
44,453
|
|
Loans
|
|
35,241
|
|
32,199
|
|
32,512
|
|
32,104
|
|
32,575
|
|
Securities
|
|
7,233
|
|
7,385
|
|
7,324
|
|
7,173
|
|
7,043
|
|
Short-term investments
|
|
266
|
|
128
|
|
253
|
|
470
|
|
378
|
|
Allowance for loan losses
|
|
240
|
|
238
|
|
237
|
|
235
|
|
234
|
|
Goodwill and other acquisition-related intangible assets
|
2,866
|
|
2,569
|
|
2,574
|
|
2,555
|
|
2,560
|
|
Deposits
|
|
36,159
|
|
33,210
|
|
32,468
|
|
32,894
|
|
33,056
|
|
Borrowings
|
|
3,593
|
|
3,392
|
|
4,639
|
|
3,877
|
|
4,104
|
|
Notes and debentures
|
|
896
|
|
886
|
|
889
|
|
892
|
|
902
|
|
Stockholders' equity
|
|
6,534
|
|
5,959
|
|
5,900
|
|
5,845
|
|
5,820
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
35,859
|
|
33,181
|
|
33,369
|
|
32,833
|
|
33,256
|
|
People's United
Bank, N.A.
|
|
35,809
|
|
33,132
|
|
33,317
|
|
32,784
|
|
33,202
|
|
Non-performing assets (2)
|
|
186
|
|
173
|
|
187
|
|
174
|
|
168
|
|
Net loan charge-offs
|
|
7.5
|
|
7.0
|
|
5.0
|
|
4.5
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
35,016
|
$
|
32,166
|
$
|
32,116
|
$
|
32,096
|
$
|
32,271
|
|
Securities (3)
|
|
7,479
|
|
7,404
|
|
7,302
|
|
7,186
|
|
7,022
|
|
Short-term investments
|
|
292
|
|
193
|
|
267
|
|
366
|
|
361
|
|
Total earning assets
|
|
42,786
|
|
39,763
|
|
39,685
|
|
39,648
|
|
39,654
|
|
Total assets
|
|
47,721
|
|
44,245
|
|
44,110
|
|
44,011
|
|
44,039
|
|
Deposits
|
|
35,959
|
|
33,058
|
|
32,535
|
|
32,824
|
|
32,879
|
|
Borrowings
|
|
3,456
|
|
3,539
|
|
4,031
|
|
3,752
|
|
3,836
|
|
Notes and debentures
|
|
886
|
|
888
|
|
890
|
|
895
|
|
904
|
|
Total funding liabilities
|
|
40,302
|
|
37,485
|
|
37,456
|
|
37,471
|
|
37,619
|
|
Stockholders' equity
|
|
6,515
|
|
5,937
|
|
5,870
|
|
5,820
|
|
5,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
0.09
|
%
|
0.09
|
%
|
0.06
|
%
|
0.06
|
%
|
0.08
|
%
|
Non-performing assets to originated loans,
|
|
|
|
|
|
|
|
|
|
|
|
real estate owned and
repossessed assets (2)
|
|
0.61
|
|
0.57
|
|
0.62
|
|
0.58
|
|
0.56
|
|
Originated allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
(2)
|
|
0.77
|
|
0.78
|
|
0.77
|
|
0.78
|
|
0.77
|
|
Originated
non-performing loans (2)
|
|
140.9
|
|
147.9
|
|
138.4
|
|
149.3
|
|
155.2
|
|
Average stockholders' equity to average total assets
|
|
13.7
|
|
13.4
|
|
13.3
|
|
13.2
|
|
13.1
|
|
Stockholders' equity to total assets
|
|
13.6
|
|
13.5
|
|
13.2
|
|
13.3
|
|
13.1
|
|
Tangible common equity to tangible assets (4)
|
|
7.6
|
|
7.6
|
|
7.3
|
|
7.3
|
|
7.2
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.6
|
|
12.8
|
|
12.5
|
|
12.6
|
|
12.2
|
|
People's United
Bank, N.A.
|
|
13.2
|
|
13.6
|
|
13.4
|
|
12.9
|
|
12.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) December 31, 2018
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)
|
2018
|
2018
|
2018
|
2017
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
665.7
|
$
410.5
|
$
462.7
|
$
505.1
|
Short-term
investments
|
266.3
|
127.5
|
253.1
|
377.5
|
Securities:
|
|
|
|
|
Trading debt
securities, at fair value
|
8.4
|
8.3
|
8.2
|
8.2
|
Equity
securities, at fair value
|
8.1
|
8.9
|
9.9
|
8.7
|
Debt
securities available-for-sale, at fair value
|
3,121.0
|
3,312.1
|
3,245.1
|
3,125.3
|
Debt
securities held-to-maturity, at amortized cost
|
3,792.3
|
3,742.9
|
3,718.7
|
3,588.1
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
303.4
|
312.4
|
342.2
|
312.3
|
Total securities
|
7,233.2
|
7,384.6
|
7,324.1
|
7,042.6
|
Loans
held-for-sale
|
19.5
|
15.2
|
17.1
|
16.6
|
Loans:
|
|
|
|
|
Commercial
real estate
|
11,649.6
|
10,595.5
|
10,761.1
|
11,068.7
|
Commercial and
industrial
|
9,088.9
|
8,568.6
|
8,823.3
|
8,731.1
|
Equipment
financing
|
4,339.2
|
4,209.3
|
4,103.9
|
3,905.4
|
Total Commercial Portfolio
|
25,077.7
|
23,373.4
|
23,688.3
|
23,705.2
|
Residential
mortgage
|
8,154.2
|
6,911.9
|
6,866.2
|
6,805.7
|
Home equity
and other consumer
|
2,009.5
|
1,914.0
|
1,957.5
|
2,064.4
|
Total Retail Portfolio
|
10,163.7
|
8,825.9
|
8,823.7
|
8,870.1
|
Total loans
|
35,241.4
|
32,199.3
|
32,512.0
|
32,575.3
|
Less allowance
for loan losses
|
(240.4)
|
(238.0)
|
(236.8)
|
(234.4)
|
Total loans, net
|
35,001.0
|
31,961.3
|
32,275.2
|
32,340.9
|
Goodwill and other
acquisition-related intangible assets
|
2,865.7
|
2,568.9
|
2,573.8
|
2,560.0
|
Bank-owned life
insurance
|
467.0
|
407.7
|
407.2
|
405.0
|
Premises and
equipment, net
|
267.3
|
243.8
|
246.3
|
253.0
|
Other
assets
|
1,091.6
|
1,013.7
|
1,015.0
|
952.7
|
Total assets
|
$
47,877.3
|
$
44,133.2
|
$
44,574.5
|
$
44,453.4
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
8,543.0
|
$
8,060.2
|
$
8,002.4
|
$
8,002.4
|
Savings
|
4,116.5
|
4,048.8
|
4,184.9
|
4,410.5
|
Interest-bearing checking and money market
|
16,583.3
|
15,065.3
|
14,659.4
|
15,189.1
|
Time
|
6,916.2
|
6,035.9
|
5,621.5
|
5,454.3
|
Total deposits
|
36,159.0
|
33,210.2
|
32,468.2
|
33,056.3
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,404.5
|
2,369.7
|
3,510.1
|
2,774.4
|
Federal funds
purchased
|
845.0
|
735.0
|
855.0
|
820.0
|
Customer
repurchase agreements
|
332.9
|
261.3
|
254.9
|
301.6
|
Other
borrowings
|
11.0
|
26.0
|
19.1
|
207.8
|
Total borrowings
|
3,593.4
|
3,392.0
|
4,639.1
|
4,103.8
|
Notes and
debentures
|
895.8
|
885.6
|
888.7
|
901.6
|
Other
liabilities
|
695.2
|
686.5
|
678.3
|
571.8
|
Total liabilities
|
41,343.4
|
38,174.3
|
38,674.3
|
38,633.5
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
244.1
|
Common
stock
|
4.7
|
4.4
|
4.4
|
4.4
|
Additional paid-in
capital
|
6,549.3
|
6,054.3
|
6,040.3
|
6,012.3
|
Retained
earnings
|
1,284.8
|
1,220.9
|
1,167.9
|
1,040.2
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(130.1)
|
(131.9)
|
(133.7)
|
(137.3)
|
Accumulated other
comprehensive loss
|
(256.8)
|
(270.8)
|
(260.7)
|
(181.7)
|
Treasury stock, at
cost
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
Total stockholders' equity
|
6,533.9
|
5,958.9
|
5,900.2
|
5,819.9
|
Total liabilities and stockholders' equity
|
$
47,877.3
|
$
44,133.2
|
$
44,574.5
|
$
44,453.4
|
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)
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
130.2
|
|
$
114.7
|
|
$
111.5
|
|
$
107.0
|
|
$
106.2
|
|
|
Commercial and
industrial
|
100.1
|
|
93.2
|
|
90.1
|
|
82.3
|
|
80.1
|
|
|
Equipment
financing
|
56.7
|
|
56.2
|
|
50.5
|
|
48.9
|
|
47.4
|
|
|
Residential
mortgage
|
70.2
|
|
56.0
|
|
55.3
|
|
54.7
|
|
53.4
|
|
|
Home equity
and other consumer
|
24.4
|
|
22.0
|
|
21.4
|
|
20.8
|
|
20.7
|
|
|
Total interest on loans
|
381.6
|
|
342.1
|
|
328.8
|
|
313.7
|
|
307.8
|
|
|
Securities
|
48.5
|
|
46.6
|
|
45.1
|
|
44.0
|
|
41.6
|
|
|
Short-term
investments
|
1.4
|
|
1.1
|
|
1.3
|
|
1.2
|
|
1.0
|
|
|
Loans
held-for-sale
|
0.3
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
|
Total interest and dividend income
|
431.8
|
|
390.0
|
|
375.4
|
|
359.1
|
|
350.6
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
70.6
|
|
56.9
|
|
47.3
|
|
41.3
|
|
38.3
|
|
|
Borrowings
|
20.0
|
|
18.2
|
|
18.5
|
|
14.2
|
|
12.4
|
|
|
Notes and
debentures
|
8.6
|
|
8.5
|
|
8.4
|
|
7.8
|
|
7.6
|
|
|
Total interest expense
|
99.2
|
|
83.6
|
|
74.2
|
|
63.3
|
|
58.3
|
|
|
Net interest income
|
332.6
|
|
306.4
|
|
301.2
|
|
295.8
|
|
292.3
|
|
|
Provision for loan
losses
|
9.9
|
|
8.2
|
|
6.5
|
|
5.4
|
|
7.5
|
|
|
Net interest income after provision for loan losses
|
322.7
|
|
298.2
|
|
294.7
|
|
290.4
|
|
284.8
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
26.9
|
|
24.9
|
|
24.3
|
|
23.8
|
|
24.7
|
|
|
Investment
management fees
|
16.4
|
|
17.4
|
|
17.2
|
|
17.7
|
|
17.3
|
|
|
Operating
lease income
|
12.0
|
|
11.0
|
|
11.2
|
|
10.7
|
|
11.7
|
|
|
Commercial
banking lending fees
|
9.6
|
|
7.9
|
|
9.4
|
|
10.4
|
|
8.8
|
|
|
Insurance
revenue
|
6.7
|
|
9.8
|
|
8.3
|
|
9.8
|
|
6.9
|
|
|
Cash
management fees
|
6.5
|
|
7.0
|
|
7.0
|
|
6.6
|
|
6.5
|
|
|
Customer
interest rate swap income, net
|
6.3
|
|
2.8
|
|
4.0
|
|
1.5
|
|
5.2
|
|
|
Brokerage
commissions
|
3.3
|
|
3.2
|
|
3.2
|
|
3.1
|
|
2.9
|
|
|
Net security
(losses) gains (1)
|
(10.0)
|
|
0.1
|
|
-
|
|
0.1
|
|
(9.8)
|
|
|
Other
non-interest income
|
11.0
|
|
8.2
|
|
10.3
|
|
6.7
|
|
13.1
|
|
|
Total non-interest income
|
88.7
|
|
92.3
|
|
94.9
|
|
90.4
|
|
87.3
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits (2)
|
151.5
|
|
135.7
|
|
135.0
|
|
140.7
|
|
132.7
|
|
|
Occupancy and
equipment
|
44.6
|
|
41.6
|
|
40.8
|
|
41.2
|
|
41.0
|
|
|
Professional
and outside services
|
21.4
|
|
17.0
|
|
20.6
|
|
18.6
|
|
18.7
|
|
|
Operating
lease expense
|
9.8
|
|
8.9
|
|
8.7
|
|
9.0
|
|
8.9
|
|
|
Regulatory
assessments
|
7.4
|
|
10.0
|
|
9.9
|
|
10.6
|
|
11.9
|
|
|
Amortization
of other acquisition-related intangible assets
|
6.9
|
|
4.9
|
|
4.9
|
|
5.1
|
|
7.9
|
|
|
Other
non-interest expense (2)
|
21.1
|
|
23.2
|
|
28.7
|
|
18.3
|
|
18.6
|
|
|
Total non-interest expense (1)
|
262.7
|
|
241.3
|
|
248.6
|
|
243.5
|
|
239.7
|
|
|
Income before income tax expense
|
148.7
|
|
149.2
|
|
141.0
|
|
137.3
|
|
132.4
|
|
|
Income tax expense
(1)
|
15.8
|
|
32.2
|
|
30.8
|
|
29.4
|
|
26.2
|
|
|
Net income
|
132.9
|
|
117.0
|
|
110.2
|
|
107.9
|
|
106.2
|
|
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
|
Net income available to common shareholders
|
$
129.4
|
|
$
113.5
|
|
$
106.7
|
|
$
104.4
|
|
$
102.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.35
|
|
$
0.33
|
|
$
0.31
|
|
$
0.31
|
|
$
0.30
|
|
|
Diluted
|
0.35
|
|
0.33
|
|
0.31
|
|
0.30
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $10.0
million of security losses for both the three months ended December
31, 2018 and 2017, which are considered
|
non-operating, incurred in
response to tax reform-related benefits realized in each period.
Total non-interest expense includes
|
$8.0 million, $0.5 million,
$2.9 million and $1.6 million of non-operating expenses for the
three months ended December 31, 2018,
|
September 30, 2018, June 30,
2018 and December 31, 2017, respectively. Income tax expense
includes $9.2 million and $6.5 million
|
of benefits realized in
connection with tax reform, which are considered non-operating, for
the three months ended
|
December 31, 2018 and 2017,
respectively. See Non-GAAP Financial Measures and
Reconciliation to GAAP.
|
(2) In accordance
with GAAP, effective January 1, 2018, net periodic pension and
postretirement benefit costs are reported within other
|
non-interest expense rather
than compensation and benefits. Prior period amounts have
been reclassified to conform to this
|
presentation.
|
People's United
Financial, Inc.
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
(in millions, except
per common share data)
|
2018
|
|
2017
|
|
Interest and
dividend income:
|
|
|
|
|
Commercial
real estate
|
$
463.4
|
|
$
405.7
|
|
Commercial and
industrial
|
365.7
|
|
298.8
|
|
Equipment
financing
|
212.3
|
|
152.1
|
|
Residential
mortgage
|
236.2
|
|
207.5
|
|
Home equity
and other consumer
|
88.6
|
|
80.0
|
|
Total interest on loans
|
1,366.2
|
|
1,144.1
|
|
Securities
|
184.2
|
|
153.7
|
|
Short-term
investments
|
5.0
|
|
3.7
|
|
Loans held for
sale
|
0.9
|
|
0.9
|
|
Total interest and dividend income
|
1,556.3
|
|
1,302.4
|
|
Interest
expense:
|
|
|
|
|
Deposits
|
216.1
|
|
130.7
|
|
Borrowings
|
70.9
|
|
41.3
|
|
Notes and
debentures
|
33.3
|
|
29.9
|
|
Total interest expense
|
320.3
|
|
201.9
|
|
Net interest income
|
1,236.0
|
|
1,100.5
|
|
Provision for loan
losses
|
30.0
|
|
26.0
|
|
Net interest income after provision for loan losses
|
1,206.0
|
|
1,074.5
|
|
Non-interest
income:
|
|
|
|
|
Bank service
charges
|
99.9
|
|
98.5
|
|
Investment
management fees
|
68.7
|
|
66.5
|
|
Operating
lease income
|
44.9
|
|
43.8
|
|
Commercial
banking lending fees
|
37.3
|
|
35.5
|
|
Insurance
revenue
|
34.6
|
|
33.2
|
|
Cash
management fees
|
27.1
|
|
26.1
|
|
Customer
interest rate swap income, net
|
14.6
|
|
12.3
|
|
Brokerage
commissions
|
12.8
|
|
12.1
|
|
Net security
(losses) gains (1)
|
(9.8)
|
|
(25.4)
|
|
Other
non-interest income
|
36.3
|
|
50.3
|
|
Total non-interest income
|
366.4
|
|
352.9
|
|
Non-interest
expense:
|
|
|
|
|
Compensation
and benefits (2)
|
562.9
|
|
522.7
|
|
Occupancy and
equipment
|
168.2
|
|
159.6
|
|
Professional
and outside services
|
77.6
|
|
81.5
|
|
Regulatory
assessments
|
37.9
|
|
41.7
|
|
Operating
lease expense
|
36.4
|
|
35.2
|
|
Amortization
of other acquisition-related intangible assets
|
21.8
|
|
30.0
|
|
Other
non-interest expense (2)
|
91.3
|
|
89.6
|
|
Total non-interest expense (1)
|
996.1
|
|
960.3
|
|
Income before income tax expense
|
576.3
|
|
467.1
|
|
Income tax expense
(1)
|
108.2
|
|
129.9
|
|
Net income
|
468.1
|
|
337.2
|
|
Preferred stock
dividend
|
14.1
|
|
14.1
|
|
Net income available to common shareholders
|
$
454.0
|
|
$
323.1
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
Basic
|
$
1.30
|
|
$
0.98
|
|
Diluted
|
1.29
|
|
0.97
|
|
|
|
|
|
|
(1) Includes $10.0
million of security losses for both the twelve months ended
December 31, 2018 and 2017,
|
which are considered
non-operating, incurred in response to tax reform-related benefits
realized in
|
each period. Total
non-interest expense includes $11.4 million and $30.6 million of
non-operating
|
expenses for the twelve
months ended December 31, 2018 and 2017, respectively. Income
tax
|
expense includes $9.2
million and $6.5 million of benefits realized in connection with
tax reform,
|
which are considered
non-operating, for the twelve months ended December 31, 2018 and
2017,
|
respectively. See
Non-GAAP Financial Measures and Reconciliation to GAAP.
|
(2) In accordance
with GAAP, effective January 1, 2018, net periodic pension and
postretirement benefit
|
costs are reported within
other non-interest expense rather than compensation and
benefits. Prior
|
period amounts have been
reclassified to conform to this presentation.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2018
|
|
September 30,
2018
|
|
December 31,
2017
|
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
|
$
291.6
|
$
1.4
|
2.02%
|
|
$
192.5
|
$
1.1
|
2.06%
|
|
$
360.7
|
$
1.0
|
1.16%
|
Securities
(2)
|
7,478.7
|
52.9
|
2.83
|
|
7,404.2
|
50.8
|
2.75
|
|
7,022.6
|
49.2
|
2.80
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
11,688.1
|
130.2
|
4.45
|
|
10,641.4
|
114.7
|
4.31
|
|
11,101.5
|
106.2
|
3.83
|
Commercial and
industrial
|
8,880.3
|
102.6
|
4.62
|
|
8,584.8
|
95.6
|
4.45
|
|
8,533.3
|
84.3
|
3.95
|
Equipment
financing
|
4,243.2
|
56.7
|
5.34
|
|
4,120.8
|
56.2
|
5.47
|
|
3,750.4
|
47.4
|
5.05
|
Residential
mortgage
|
8,165.4
|
70.5
|
3.46
|
|
6,887.3
|
56.2
|
3.27
|
|
6,806.5
|
53.6
|
3.15
|
Home equity
and other consumer
|
2,038.5
|
24.4
|
4.80
|
|
1,931.8
|
22.0
|
4.55
|
|
2,079.0
|
20.7
|
3.99
|
Total loans
|
35,015.5
|
384.4
|
4.39
|
|
32,166.1
|
344.7
|
4.29
|
|
32,270.7
|
312.2
|
3.87
|
Total earning assets
|
42,785.8
|
$ 438.7
|
4.10%
|
|
39,762.8
|
$ 396.6
|
3.99%
|
|
39,654.0
|
$ 362.4
|
3.66%
|
Other
assets
|
4,935.3
|
|
|
|
4,481.8
|
|
|
|
4,384.6
|
|
|
Total assets
|
$
47,721.1
|
|
|
|
$
44,244.6
|
|
|
|
$
44,038.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
8,576.4
|
$
-
|
- %
|
|
$
8,025.2
|
$
-
|
- %
|
|
$
7,855.0
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
20,621.7
|
41.7
|
0.81
|
|
19,031.4
|
32.6
|
0.68
|
|
19,605.7
|
22.7
|
0.46
|
Time
|
6,761.1
|
28.9
|
1.71
|
|
6,001.3
|
24.3
|
1.62
|
|
5,417.8
|
15.6
|
1.15
|
Total deposits
|
35,959.2
|
70.6
|
0.79
|
|
33,057.9
|
56.9
|
0.69
|
|
32,878.5
|
38.3
|
0.47
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,371.9
|
14.9
|
2.51
|
|
2,560.6
|
14.0
|
2.18
|
|
2,616.7
|
9.2
|
1.40
|
Federal funds
purchased
|
761.4
|
4.5
|
2.38
|
|
722.7
|
3.8
|
2.11
|
|
690.5
|
2.3
|
1.32
|
Customer
repurchase agreements
|
285.1
|
0.4
|
0.56
|
|
234.3
|
0.3
|
0.53
|
|
309.2
|
0.1
|
0.19
|
Other
borrowings
|
37.5
|
0.2
|
2.26
|
|
20.9
|
0.1
|
2.05
|
|
219.4
|
0.8
|
1.46
|
Total borrowings
|
3,455.9
|
20.0
|
2.32
|
|
3,538.5
|
18.2
|
2.05
|
|
3,835.8
|
12.4
|
1.29
|
Notes and
debentures
|
886.4
|
8.6
|
3.90
|
|
888.3
|
8.5
|
3.83
|
|
904.4
|
7.6
|
3.36
|
Total funding liabilities
|
40,301.5
|
$
99.2
|
0.99%
|
|
37,484.7
|
$
83.6
|
0.89%
|
|
37,618.7
|
$
58.3
|
0.62%
|
Other
liabilities
|
904.2
|
|
|
|
823.3
|
|
|
|
645.9
|
|
|
Total liabilities
|
41,205.7
|
|
|
|
38,308.0
|
|
|
|
38,264.6
|
|
|
Stockholders'
equity
|
6,515.4
|
|
|
|
5,936.6
|
|
|
|
5,774.0
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
47,721.1
|
|
|
|
$
44,244.6
|
|
|
|
$
44,038.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 339.5
|
3.11%
|
|
|
$ 313.0
|
3.10%
|
|
|
$ 304.1
|
3.04%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.17%
|
|
|
|
3.15%
|
|
|
|
3.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $6.9 million, $6.6 million and $11.8
million for the three months ended
|
December 31, 2018,
September 30, 2018 and December 31, 2017, respectively.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
Twelve months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
278.9
|
$
5.0
|
1.81%
|
|
$
358.3
|
$
3.7
|
1.04%
|
|
Securities
(1)
|
7,343.7
|
200.9
|
2.74
|
|
6,785.0
|
181.3
|
2.67
|
|
Loans:
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
11,017.7
|
463.4
|
4.21
|
|
10,961.2
|
405.7
|
3.70
|
|
Commercial and
industrial
|
8,611.7
|
375.4
|
4.36
|
|
8,278.6
|
313.9
|
3.79
|
|
Equipment
financing
|
4,040.8
|
212.3
|
5.25
|
|
3,264.3
|
152.1
|
4.66
|
|
Residential
mortgage
|
7,188.6
|
237.1
|
3.30
|
|
6,653.0
|
208.4
|
3.13
|
|
Home equity
and other consumer
|
1,995.6
|
88.6
|
4.44
|
|
2,107.9
|
80.0
|
3.80
|
|
Total loans
|
32,854.4
|
1,376.8
|
4.19
|
|
31,265.0
|
1,160.1
|
3.71
|
|
Total earning assets
|
40,477.0
|
$ 1,582.7
|
3.91%
|
|
38,408.3
|
$
1,345.1
|
3.50%
|
|
Other
assets
|
4,552.7
|
|
|
|
4,173.3
|
|
|
|
Total assets
|
$
45,029.7
|
|
|
|
$
42,581.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
8,069.8
|
$
-
|
- %
|
|
$
7,329.3
|
$
-
|
- %
|
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
and money market
|
19,630.1
|
127.4
|
0.65
|
|
19,486.7
|
80.1
|
0.41
|
|
Time
|
5,901.4
|
88.7
|
1.50
|
|
4,915.7
|
50.6
|
1.03
|
|
Total deposits
|
33,601.3
|
216.1
|
0.64
|
|
31,731.7
|
130.7
|
0.41
|
|
Borrowings:
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,653.6
|
54.5
|
2.05
|
|
2,677.5
|
31.5
|
1.17
|
|
Federal funds
purchased
|
682.2
|
13.6
|
2.00
|
|
643.5
|
7.1
|
1.11
|
|
Customer
repurchase agreements
|
252.7
|
1.0
|
0.40
|
|
311.0
|
0.6
|
0.19
|
|
Other
borrowings
|
104.5
|
1.8
|
1.66
|
|
132.0
|
2.1
|
1.60
|
|
Total borrowings
|
3,693.0
|
70.9
|
1.92
|
|
3,764.0
|
41.3
|
1.10
|
|
Notes and
debentures
|
889.8
|
33.3
|
3.75
|
|
921.3
|
29.9
|
3.25
|
|
Total funding liabilities
|
38,184.1
|
$
320.3
|
0.84%
|
|
36,417.0
|
$
201.9
|
0.55%
|
|
Other
liabilities
|
808.4
|
|
|
|
573.0
|
|
|
|
Total liabilities
|
38,992.5
|
|
|
|
36,990.0
|
|
|
|
Stockholders'
equity
|
6,037.2
|
|
|
|
5,591.6
|
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
45,029.7
|
|
|
|
$
42,581.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (2)
|
|
$ 1,262.4
|
3.07%
|
|
|
$
1,143.2
|
2.95%
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.12%
|
|
|
|
2.98%
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances
and yields for securities are based on amortized cost.
|
(2) The fully taxable
equivalent adjustment was $26.4 million and $42.7 million for the
twelve months ended
|
December 31, 2018 and
2017, 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)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
33.5
|
$
|
17.2
|
$
|
20.3
|
$
|
21.0
|
$
|
23.7
|
|
Commercial and
industrial
|
|
38.0
|
|
44.9
|
|
50.1
|
|
34.6
|
|
32.6
|
|
Equipment
financing
|
|
42.0
|
|
49.3
|
|
49.2
|
|
47.7
|
|
44.3
|
|
Total
|
|
113.5
|
|
111.4
|
|
119.6
|
|
103.3
|
|
100.6
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
38.9
|
|
32.0
|
|
33.5
|
|
35.4
|
|
32.7
|
|
Home
equity
|
|
15.3
|
|
14.6
|
|
15.1
|
|
16.1
|
|
15.4
|
|
Other
consumer
|
|
-
|
|
0.1
|
|
-
|
|
-
|
|
-
|
|
Total
|
|
54.2
|
|
46.7
|
|
48.6
|
|
51.5
|
|
48.1
|
|
Total originated non-performing loans (1)
|
|
167.7
|
|
158.1
|
|
168.2
|
|
154.8
|
|
148.7
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
8.7
|
|
8.7
|
|
9.3
|
|
10.6
|
|
9.3
|
|
Residential
|
|
5.5
|
|
4.4
|
|
5.8
|
|
6.8
|
|
7.6
|
|
Total REO
|
|
14.2
|
|
13.1
|
|
15.1
|
|
17.4
|
|
16.9
|
|
Repossessed
assets
|
|
3.9
|
|
2.0
|
|
3.7
|
|
1.8
|
|
2.5
|
|
Total non-performing assets
|
$
|
185.8
|
$
|
173.2
|
$
|
187.0
|
$
|
174.0
|
$
|
168.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount)
|
$
|
50.1
|
$
|
32.3
|
$
|
26.7
|
$
|
30.1
|
$
|
29.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.55
|
%
|
0.53
|
%
|
0.56
|
%
|
0.52
|
%
|
0.49
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
|
0.61
|
|
0.57
|
|
0.62
|
|
0.58
|
|
0.56
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
4.76
|
|
4.78
|
|
5.25
|
|
4.94
|
|
4.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $1.9 million at December 31, 2018,
$2.5 million at September 30, 2018,
|
$2.6 million at June
30, 2018, $3.0 million at March 31, 2018 and $3.1 million at
December 31, 2017.
|
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)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
|
233.9
|
$
|
232.8
|
$
|
231.3
|
$
|
230.8
|
$
|
229.2
|
|
Charge-offs
|
|
(7.3)
|
|
(6.4)
|
|
(4.7)
|
|
(4.4)
|
|
(6.4)
|
|
Recoveries
|
|
1.3
|
|
1.0
|
|
1.9
|
|
1.4
|
|
1.2
|
|
Net loan charge-offs
|
|
(6.0)
|
|
(5.4)
|
|
(2.8)
|
|
(3.0)
|
|
(5.2)
|
|
Provision for
loan losses
|
|
8.4
|
|
6.5
|
|
4.3
|
|
3.5
|
|
6.8
|
|
Balance at end of period
|
|
236.3
|
|
233.9
|
|
232.8
|
|
231.3
|
|
230.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
4.1
|
|
4.0
|
|
4.0
|
|
3.6
|
|
4.2
|
|
Charge-offs
|
|
(1.8)
|
|
(2.0)
|
|
(2.5)
|
|
(1.8)
|
|
(1.5)
|
|
Recoveries
|
|
0.3
|
|
0.4
|
|
0.3
|
|
0.3
|
|
0.2
|
|
Net loan charge-offs
|
|
(1.5)
|
|
(1.6)
|
|
(2.2)
|
|
(1.5)
|
|
(1.3)
|
|
Provision for
loan losses
|
|
1.5
|
|
1.7
|
|
2.2
|
|
1.9
|
|
0.7
|
|
Balance at end of period
|
|
4.1
|
|
4.1
|
|
4.0
|
|
4.0
|
|
3.6
|
|
Total allowance for loan losses
|
$
|
240.4
|
$
|
238.0
|
$
|
236.8
|
$
|
235.3
|
$
|
234.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated commercial
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
0.93
|
%
|
0.94
|
%
|
0.93
|
%
|
0.94
|
%
|
0.93
|
%
|
Originated retail
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated retail loans
|
|
0.36
|
|
0.36
|
|
0.36
|
|
0.36
|
|
0.35
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
|
|
0.77
|
|
0.78
|
|
0.77
|
|
0.78
|
|
0.77
|
|
Originated non-performing loans
|
|
140.9
|
|
147.9
|
|
138.4
|
|
149.3
|
|
155.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
1.4
|
$
|
1.7
|
$
|
0.7
|
$
|
0.5
|
$
|
1.5
|
|
Commercial and
industrial
|
|
1.4
|
|
2.2
|
|
1.7
|
|
1.7
|
|
2.1
|
|
Equipment
financing
|
|
4.4
|
|
2.9
|
|
2.6
|
|
1.6
|
|
2.0
|
|
Total
|
|
7.2
|
|
6.8
|
|
5.0
|
|
3.8
|
|
5.6
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
-
|
|
0.1
|
|
(0.1)
|
|
0.2
|
|
0.2
|
|
Home
equity
|
|
0.1
|
|
(0.1)
|
|
-
|
|
0.4
|
|
0.5
|
|
Other
consumer
|
|
0.2
|
|
0.2
|
|
0.1
|
|
0.1
|
|
0.2
|
|
Total
|
|
0.3
|
|
0.2
|
|
-
|
|
0.7
|
|
0.9
|
|
Total net loan charge-offs
|
$
|
7.5
|
$
|
7.0
|
$
|
5.0
|
$
|
4.5
|
$
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.09
|
%
|
0.09
|
%
|
0.06
|
%
|
0.06
|
%
|
0.08
|
%
|
People's United
Financial, Inc.
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NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP
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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
|
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relative strength of
People's United's capital position.
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The efficiency ratio, which represents an approximate measure of
the cost required by People's United to generate a
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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
|
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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
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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
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similar to an item of
income or expense of a type reasonably expected to be incurred
within the following two years.
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Operating earnings exclude
from net income available to common shareholders those items that
management considers
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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
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|
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.
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The tangible common equity ratio is the ratio of (i) tangible
common equity (total stockholders' equity less preferred
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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).
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In
light of diversity in presentation among financial institutions,
the methodologies used by People's United for
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determining the
non-GAAP financial measures discussed above may differ from those
used by other financial
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institutions.
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People's United
Financial, Inc.
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NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
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OPERATING
NON-INTEREST EXPENSE AND EFFICIENCY RATIO
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Three Months
Ended
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Twelve Months
Ended
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|
|
Dec. 31,
|
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Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Total non-interest
expense
|
|
$
262.7
|
|
$
241.3
|
|
$
248.6
|
|
$
243.5
|
|
$
239.7
|
|
$
996.1
|
|
$
960.3
|
Adjustments to arrive
at operating
|
|
|
|
|
|
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|
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non-interest
expense:
|
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|
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|
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Merger-related
expenses
|
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(8.0)
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(0.5)
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|
(2.9)
|
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-
|
|
(1.6)
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|
(11.4)
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|
(30.6)
|
Total
|
|
(8.0)
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|
(0.5)
|
|
(2.9)
|
|
-
|
|
(1.6)
|
|
(11.4)
|
|
(30.6)
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Operating non-interest expense
|
|
254.7
|
|
240.8
|
|
245.7
|
|
243.5
|
|
238.1
|
|
984.7
|
|
929.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(9.8)
|
|
(8.9)
|
|
(8.7)
|
|
(9.0)
|
|
(8.9)
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|
(36.4)
|
|
(35.2)
|
Amortization of other
acquisition-related
|
|
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intangible assets
|
|
(6.9)
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|
(4.9)
|
|
(4.9)
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|
(5.1)
|
|
(7.9)
|
|
(21.8)
|
|
(30.0)
|
Other (1)
|
|
(1.6)
|
|
(1.8)
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|
(1.7)
|
|
(1.3)
|
|
(1.4)
|
|
(6.4)
|
|
(5.1)
|
Total non-interest expense for
|
|
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efficiency
ratio
|
|
$
236.4
|
|
$
225.2
|
|
$
230.4
|
|
$
228.1
|
|
$
219.9
|
|
$
920.1
|
|
$
859.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
339.5
|
|
$
313.0
|
|
$
307.8
|
|
$
302.1
|
|
$
304.1
|
|
$
1,262.4
|
|
$
1,143.2
|
Total non-interest
income
|
|
88.7
|
|
92.3
|
|
94.9
|
|
90.4
|
|
87.3
|
|
366.4
|
|
352.9
|
Total revenues
|
|
428.2
|
|
405.3
|
|
402.7
|
|
392.5
|
|
391.4
|
|
1,628.8
|
|
1,496.1
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(9.8)
|
|
(8.9)
|
|
(8.7)
|
|
(9.0)
|
|
(8.9)
|
|
(36.4)
|
|
(35.2)
|
BOLI FTE
adjustment
|
|
0.5
|
|
0.6
|
|
0.4
|
|
0.4
|
|
0.8
|
|
1.9
|
|
3.4
|
Net security
losses (gains)
|
|
10.0
|
|
(0.1)
|
|
-
|
|
(0.1)
|
|
9.8
|
|
9.8
|
|
25.4
|
Other
(2)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1.3)
|
|
-
|
|
(1.3)
|
Total revenues for efficiency ratio
|
|
$
428.9
|
|
$
396.9
|
|
$
394.4
|
|
$
383.8
|
|
$
391.8
|
|
$
1,604.1
|
|
$
1,488.4
|
Efficiency ratio
|
|
55.1%
|
|
56.7%
|
|
58.4%
|
|
59.4%
|
|
56.1%
|
|
57.4%
|
|
57.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 total revenues for purposes
of calculating the efficiency ratio
|
|
include, as
applicable, asset write-offs and gains associated with the sale of
branch locations.
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in millions,
except per common share data)
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income available
to common shareholders
|
$
129.4
|
|
$
113.5
|
|
$
106.7
|
|
$
104.4
|
|
$
102.7
|
|
$
454.0
|
|
$
323.1
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
8.0
|
|
0.5
|
|
2.9
|
|
-
|
|
1.6
|
|
11.4
|
|
30.6
|
Security
losses associated with tax reform (1)
|
10.0
|
|
-
|
|
-
|
|
-
|
|
10.0
|
|
10.0
|
|
10.0
|
Total pre-tax adjustments
|
|
18.0
|
|
0.5
|
|
2.9
|
|
-
|
|
11.6
|
|
21.4
|
|
40.6
|
Tax effect
(2)
|
|
(13.2)
|
|
(0.2)
|
|
(0.6)
|
|
-
|
|
(9.8)
|
|
(14.0)
|
|
(17.9)
|
Total adjustments, net of tax
|
|
4.8
|
|
0.3
|
|
2.3
|
|
-
|
|
1.8
|
|
7.4
|
|
22.7
|
Operating earnings
|
|
$
134.2
|
|
$
113.8
|
|
$
109.0
|
|
$
104.4
|
|
$
104.5
|
|
$
461.4
|
|
$
345.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.35
|
|
$
0.33
|
|
$
0.31
|
|
$
0.30
|
|
$
0.30
|
|
$
1.29
|
|
$
0.97
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
0.02
|
|
0.07
|
Security
losses associated with tax reform
|
|
0.02
|
|
-
|
|
-
|
|
-
|
|
0.02
|
|
0.02
|
|
0.02
|
Tax benefit
associated with tax reform
|
|
(0.02)
|
|
-
|
|
-
|
|
-
|
|
(0.02)
|
|
(0.02)
|
|
(0.02)
|
Total adjustments per common share
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
0.02
|
|
0.07
|
Operating EPS
|
|
$
0.36
|
|
$
0.33
|
|
$
0.32
|
|
$
0.30
|
|
$
0.31
|
|
$
1.31
|
|
$
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$
47,721
|
|
$
44,245
|
|
$
44,110
|
|
$
44,011
|
|
$
44,039
|
|
$
45,030
|
|
$
42,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
1.12%
|
|
1.03%
|
|
0.99%
|
|
0.95%
|
|
0.95%
|
|
1.02%
|
|
0.81%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Security losses
incurred as a tax planning strategy in response to tax
reform-related benefits are considered non-operating.
|
(2) Includes $9.2
million for the three and twelve months ended December 31, 2018 and
$6.5 million for the three and twelve
|
months ended December 31,
2017 of benefits realized in connection with tax reform.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating
earnings
|
|
$
134.2
|
|
$
113.8
|
|
$
109.0
|
|
$
104.4
|
|
$
104.5
|
|
$
461.4
|
|
$
345.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
6,515
|
|
$
5,937
|
|
$
5,870
|
|
$
5,820
|
|
$
5,774
|
|
$
6,037
|
|
$
5,592
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
6,271
|
|
5,693
|
|
5,626
|
|
5,576
|
|
5,530
|
|
5,793
|
|
5,348
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,807
|
|
2,572
|
|
2,554
|
|
2,558
|
|
2,564
|
|
2,623
|
|
2,410
|
Average tangible
common equity
|
|
$
3,464
|
|
$
3,121
|
|
$
3,072
|
|
$
3,018
|
|
$
2,966
|
|
$
3,170
|
|
$
2,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
15.5%
|
|
14.6%
|
|
14.2%
|
|
13.8%
|
|
14.1%
|
|
14.6%
|
|
11.8%
|
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)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Common dividends
paid
|
|
$
65.1
|
|
$
60.0
|
|
$
59.9
|
|
$
58.8
|
|
$
58.6
|
|
$
243.8
|
|
$
227.9
|
Operating
earnings
|
|
$
134.2
|
|
$
113.8
|
|
$
109.0
|
|
$
104.4
|
|
$
104.5
|
|
$
461.4
|
|
$
345.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
48.5%
|
|
52.7%
|
|
55.0%
|
|
56.3%
|
|
56.1%
|
|
52.8%
|
|
65.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
|
|
|
(dollars in
millions)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
Total stockholders'
equity
|
|
$
6,534
|
|
$
5,959
|
|
$
5,900
|
|
$
5,845
|
|
$
5,820
|
|
|
|
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
|
|
|
Common
equity
|
|
6,290
|
|
5,715
|
|
5,656
|
|
5,601
|
|
5,576
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,866
|
|
2,569
|
|
2,574
|
|
2,555
|
|
2,560
|
|
|
|
|
Tangible common
equity
|
|
$
3,424
|
|
$
3,146
|
|
$
3,082
|
|
$
3,046
|
|
$
3,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 47,877
|
|
$ 44,133
|
|
$ 44,575
|
|
$ 44,101
|
|
$
44,453
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,866
|
|
2,569
|
|
2,574
|
|
2,555
|
|
2,560
|
|
|
|
|
Tangible
assets
|
|
$ 45,011
|
|
$ 41,564
|
|
$ 42,001
|
|
$ 41,546
|
|
$
41,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.6%
|
|
7.6%
|
|
7.3%
|
|
7.3%
|
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
|
|
|
(in millions, except
per common share data)
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
Tangible common
equity
|
|
$
3,424
|
|
$
3,146
|
|
$
3,082
|
|
$
3,046
|
|
$
3,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
466.32
|
|
437.74
|
|
437.06
|
|
436.56
|
|
435.64
|
|
|
|
|
Less: Shares
classified as treasury shares
|
89.03
|
|
89.02
|
|
89.02
|
|
89.02
|
|
89.04
|
|
|
|
|
Unallocated ESOP shares
|
|
6.27
|
|
6.36
|
|
6.45
|
|
6.53
|
|
6.62
|
|
|
|
|
Common
shares
|
|
371.02
|
|
342.36
|
|
341.59
|
|
341.01
|
|
339.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
$
9.23
|
|
$
9.19
|
|
$
9.02
|
|
$
8.93
|
|
$
8.87
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-fourth-quarter-net-income-of-132-9-million-or-0-35-per-common-share-300780338.html
SOURCE People's United Financial, Inc.