BRIDGEPORT, Conn., Jan. 19, 2012 /PRNewswire/ -- People's United
Financial, Inc. (NASDAQ: PBCT) today announced net income of
$43.0 million, or $0.12 per share, for the fourth quarter of 2011,
compared to $32.0 million, or
$0.09 per share, for the fourth
quarter of 2010, and $52.9 million,
or $0.15 per share, for the third
quarter of 2011. Operating earnings were $58.7 million, or $0.17 per share, for the fourth quarter of 2011,
compared to $36.7 million, or
$0.10 per share, for the fourth
quarter of 2010 and $67.3 million, or
$0.19 per share, for this year's
third quarter. Included in the quarterly results are
merger-related expenses and one-time charges (after-tax) totaling
$15.7 million in the fourth quarter
of 2011, $4.7 million in the fourth
quarter of 2010 and $14.4 million in
the third quarter of 2011.
For the year ended December 31,
2011, net income totaled $198.8
million, or $0.57 per share,
compared to $85.7 million, or
$0.24 per share, for 2010.
Operating earnings were $237.1
million, or $0.68 per share,
for 2011, compared to $125.4 million,
or $0.35 per share, for 2010.
Included in both the 2011 and 2010 results are $38.3 million and $39.7
million (after-tax), respectively, of merger-related
expenses, core system conversion costs and one-time charges.
The Board of Directors of People's United Financial declared a
$0.1575 per share quarterly dividend,
payable February 15, 2012 to
shareholders of record on February 1,
2012. Based on the closing stock price on January 18, 2012, the dividend yield on People's
United Financial common stock is 4.2 percent.
"Our performance throughout 2011 reflects the significant
progress we have made in carrying out our two primary objectives -
optimizing existing businesses and efficiently deploying capital,"
stated Jack Barnes, President and
Chief Executive Officer. "Our focus on organic loan and
deposit growth throughout the franchise, including new market
opportunities within the Boston
and New York City MSAs, has resulted in improved operating
leverage, which is evident in our 2011 financial results."
Barnes added, "Integration of acquisitions has become a core
competency for this organization. We have now integrated five
acquisitions since early 2010 and exceeded our estimated cost
benefits announced at the time of each transaction. Our
momentum is based on a 170-year track record with continued
outstanding customer service throughout the financial crisis.
Offering the full breadth of products and services that our
customers need, providing relationship-based solutions, and
effectively cross-selling our products across all lines of business
are key contributors to our continued growth and strong operating
performance."
Barnes concluded, "We remain focused on delivering shareholder
value by leveraging opportunities within our existing markets.
Further, we have demonstrated our ability to prudently and
effectively deploy capital through organic loan and deposit growth,
adherence to a strong dividend policy, share repurchases and a
thoughtful acquisition strategy."
"On an operating basis, earnings were $59
million, or 17 cents per
share, this quarter," said Kirk W.
Walters, Senior Executive Vice President and Chief Financial
Officer. "The Company's performance this quarter reflects an
improvement in net interest income, higher provision expense, an
expected decline in fee income, and tighter expense control."
Walters continued, "The net interest margin increased 29 basis
points in the fourth quarter of 2011 compared to last year's fourth
quarter and 5 basis points compared to the third quarter of 2011.
The operating net interest margin was 4.07 percent in the
fourth quarter of 2011 compared to 4.11 percent in the third
quarter. Included in this quarter's net interest margin is
$5 million of cost recovery income
from the acquired loan portfolio, which added nine basis points to
the margin. As expected, non-interest income declined
$13 million from the prior quarter,
which was driven by a decrease in bank service charges of
approximately $5 million due to
changes brought about by the Dodd-Frank Act and lower net security
gains of $8.6 million. The
decrease in the level of operating non-interest expense this
quarter reflects the continued benefit from cost-savings
initiatives announced earlier in 2011."
Walters concluded, "While the overall level of non-performing
loans is reflective of a period of prolonged economic weakness, we
are pleased with the credit trends noted over the past few
quarters. In fact, throughout 2011, our net loan charge-off
ratio represented less than one-third that of our peers', which is
a reflection of the Company's historically strong underwriting
standards, the strength of the footprint in which we operate and
the resilience of our customers who have successfully managed
through the economic crisis."
At December 31, 2011, People's
United Financial's tier 1 common and total risk-based capital
ratios were 14.3 percent and 16.2 percent, respectively, and the
tangible equity ratio stood at 12.0 percent. People's United Bank's
tier 1 and total risk-based capital ratios were 13.1 percent and
14.0 percent, respectively, at December 31,
2011.
Operating return on average assets was 0.86 percent for the
fourth quarter of 2011, compared to 0.98 percent for the third
quarter of 2011 and 0.64 percent for the fourth quarter of 2010.
Operating return on average tangible stockholders' equity was
7.4 percent for the fourth quarter of 2011, compared to 8.0 percent
for the third quarter of 2011 and 4.2 percent for the fourth
quarter of 2010.
Loans acquired in connection with acquisitions have been
recorded at fair value based on an initial estimate of expected
cash flows, including a reduction for estimated credit losses, and
without carryover of the respective portfolio's historical
allowance for loan losses. A decrease in expected cash flows
in subsequent periods may indicate that a loan is impaired, which
would require the establishment of an allowance for loan losses.
As such, selected asset quality metrics have been highlighted
to distinguish between the 'originated' portfolio and the
'acquired' portfolio.
At December 31, 2011, the
allowance for loan losses for originated loans as a percentage of
originated loans, which represents all loans other than those
acquired, was 1.04 percent and as a percentage of originated
non-performing loans was 60 percent, compared to 1.09 percent and
69 percent, respectively, at September 30,
2011. For the originated commercial banking portfolio,
the allowance for loan losses ratio was 1.39 percent at
December 31, 2011 and represented 77
percent of non-performing commercial banking loans at that
date.
For the originated loan portfolio, non-performing loans equaled
1.75 percent of originated loans at December
31, 2011, compared to 1.60 percent at September 30, 2011 and 1.70 percent at
December 31, 2010.
Non-performing assets (excluding acquired non-performing
loans) equaled 2.00 percent of originated loans, REO and
repossessed assets at December 31,
2011 compared to 1.88 percent at September 30, 2011 and 2.09 percent at
December 31, 2010.
Non-performing loans in the acquired portfolio, which represent
the contractual balances of loans acquired that meet our definition
of non-performing but for which the risk of loss has already been
considered by virtue of our estimate of acquisition-date fair value
and/or the existence of an FDIC loss-share agreement, totaled
$249.0 million at December 31, 2011 compared to $241.6 million at September 30, 2011 and $359.8 million at December
31, 2010.
Fourth quarter net loan charge-offs totaled $14.8 million compared to $13.4 million in the third quarter of 2011.
Net loan charge-offs as a percent of average loans on an
annualized basis were 0.29 percent in the fourth quarter of 2011
compared to 0.27 percent in this year's third quarter. The
provision for loan losses in the fourth quarter of 2011 reflects a
$7.4 million increase in the
allowance for loan losses on originated loans related to the growth
in the commercial and residential mortgage loan portfolios and a
$7.4 million increase due to
impairment on acquired loans, partially offset by charge-offs of
$8.9 million against previously
established specific reserves.
People's United Financial, a diversified financial services
company with $28 billion in assets,
provides commercial and retail banking, as well as wealth
management services through a network of 372 branches in
Connecticut, Massachusetts, Vermont, New
York, New Hampshire and
Maine. Through its subsidiaries,
People's United Financial provides equipment financing, brokerage
and insurance services.
Conference Call
On January 19, 2012, 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.
4Q 2011 Financial Highlights
Summary
- Net income was $43.0 million, or
$0.12 per share.
- Operating earnings were $58.7
million, or $0.17 per
share.
- Net interest income totaled $242.1
million.
- Net interest margin increased 5 basis points from 3Q11 to
4.16%.
- Cost recovery income on acquired loans, representing cash
receipts in excess of carrying amount, totaled $5 million in 4Q11 and contributed 9 basis
points.
- The normalized yield on loans in 4Q11, which excludes cost
recovery income, reduced the net interest margin by 10 basis
points.
- Lower funding costs in 4Q11 benefited the net interest margin
by 6 basis points.
- Provision for loan losses totaled $20.7
million.
- Net loan charge-offs totaled $14.8
million, of which $8.9 million
related to loans with specific reserves established in prior
periods.
- Allowance for loan losses on originated loans in 4Q11 reflects
a $7.4 million increase in response
to loan growth.
- Includes a provision for loan losses on acquired loans of
$7.4 million.
- Non-interest income was $71.7
million in 4Q11 compared to $84.7
million in 3Q11.
- Bank service charges decreased $4.2
million in 4Q11 to $31.6
million, primarily as a result of certain provisions of the
Dodd-Frank Act, which became effective in October 2011.
- Insurance revenue decreased $1.8
million from 3Q11, primarily reflecting the seasonal nature
of insurance renewals.
- 4Q11 and 3Q11 include losses of $0.4
million and $4.8 million,
respectively, on sales of acquired loans.
- Loan prepayment fees declined $2.7
million from 3Q11.
- 3Q11 includes net security gains of $8.6
million (none in 4Q11).
- Non-interest expense totaled $230.2
million in 4Q11 compared to $231.9
million in 3Q11.
- Operating non-interest expense was $207.2 million in 4Q11 compared to $210.4 million in 3Q11, reflecting declines in
compensation and benefits, occupancy and equipment, and other
non-interest expense.
- 4Q11 and 3Q11 include $23.0
million and $21.5 million,
respectively, of merger-related expenses and one-time charges.
- 4Q11 includes a $1.4 million
charge relating to Visa Inc.'s funding of its litigation escrow
account.
- Effective income tax rate was 31.6% for 4Q11 and 32.7% for
2011.
Commercial Banking
- Excluding acquired loans, commercial banking loans increased
$470 million, or 17% annualized, from
September 30, 2011.
- Average commercial banking loans totaled $14.4 billion, an increase of $156 million, or 4% annualized, from 3Q11.
- Non-performing commercial banking assets, excluding acquired
non-performing loans, totaled $240.8
million at December 31, 2011,
up from $213.1 million at
September 30, 2011.
- The ratio of originated non-performing commercial banking loans
to originated commercial banking loans was 1.81% at December 31, 2011 compared to 1.61% at
September 30, 2011.
- Net loan charge-offs totaled $11.8
million, or 0.33% annualized, of average commercial banking
loans in 4Q11, compared to $9.8
million, or 0.28% annualized, in 3Q11.
- For the originated commercial banking portfolio, the allowance
for loan losses as a percentage of loans was 1.39% at December 31, 2011 compared to 1.48% at
September 30, 2011.
- The commercial banking allowance for loan losses represented
77% of originated non-performing commercial banking loans at
December 31, 2011 compared to 92% at
September 30, 2011.
- Commercial deposits totaled $5.2
billion at December 31, 2011
compared to $5.0 billion at
September 30, 2011.
Retail Banking
- Excluding acquired loans, residential mortgage loans increased
$168 million, or 23% annualized, from
September 30, 2011.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 2.19% at
December 31, 2011, unchanged from
September 30, 2011.
- Average residential mortgage loans totaled $3.6 billion, an increase of $215 million, or 26% annualized, from 3Q11.
- Net loan charge-offs totaled $1.6
million, or 0.18% annualized, of average residential
mortgage loans in 4Q11, compared to $2.1
million, or 0.25% annualized, in 3Q11.
- Excluding acquired loans, home equity loans remained unchanged
from September 30, 2011.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.82% at December 31, 2011 compared to 0.74% at
September 30, 2011.
- Average home equity loans totaled $2.1
billion in 4Q11, unchanged from 3Q11.
- Net loan charge-offs totaled $0.7
million, or 0.15% annualized, of average home equity loans
in 4Q11, compared to $1.1 million, or
0.21% annualized, in 3Q11.
- Retail deposits totaled $15.6
billion at December 31, 2011
compared to $15.5 billion at
September 30, 2011.
Wealth Management and Insurance
- Insurance revenue decreased $1.8
million from 3Q11, primarily reflecting the seasonal nature
of insurance renewals, and increased $0.3
million from 4Q10.
- Brokerage commissions declined $0.2
million from 3Q11 and $0.3
million from 4Q10, primarily reflecting lower commissions on
mutual funds and fixed income products due to the uncertainty in
the equity markets and the low interest rate environment.
- Investment management fees decreased $0.1 million from 3Q11 and increased $0.4 million from 4Q10.
- Assets under administration and those under full discretionary
management, neither of which are reported as assets of People's
United Financial, totaled $12.5
billion and $4.3 billion,
respectively, at December 31,
2011.
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" 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, 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) residential
mortgage and secondary market activity; (7) changes in accounting
and regulatory guidance applicable to banks; (8) price levels and
conditions in the public securities markets generally; (9)
competition and its effect on pricing, spending, third-party
relationships and revenues; (10) the successful integration of
acquired companies; and (11) 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
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
|
(dollars in millions, except per
share data)
|
2011
|
2011
|
2011
|
2011
|
2010
|
|
Earnings Data:
|
|
|
|
|
|
|
Net interest
income
|
$
242.1
|
$
240.0
|
$
221.2
|
$
220.3
|
$
189.8
|
|
Provision for loan
losses
|
20.7
|
14.4
|
14.0
|
14.6
|
10.9
|
|
Non-interest income
(1)
|
71.7
|
84.7
|
76.6
|
74.6
|
68.1
|
|
Non-interest expense
(2)
|
230.2
|
231.9
|
207.0
|
202.8
|
199.1
|
|
Income before income tax
expense
|
62.9
|
78.4
|
76.8
|
77.5
|
47.9
|
|
Net income
|
43.0
|
52.9
|
51.2
|
51.7
|
32.0
|
|
Operating earnings
(3)
|
58.7
|
67.3
|
57.3
|
53.8
|
36.7
|
|
|
|
|
|
|
|
|
Selected Statistical
Data:
|
|
|
|
|
|
|
Net interest margin
(4)
|
4.16%
|
4.11%
|
4.13%
|
4.16%
|
3.87%
|
|
Operating net interest
margin (3), (4)
|
4.07
|
4.11
|
4.09
|
4.00
|
3.87
|
|
Return on average assets
(4)
|
0.63
|
0.77
|
0.82
|
0.84
|
0.56
|
|
Operating return on
average assets (3), (4)
|
0.86
|
0.98
|
0.92
|
0.87
|
0.64
|
|
Return on average tangible
assets (4)
|
0.68
|
0.84
|
0.89
|
0.91
|
0.61
|
|
Return on average
stockholders' equity (4)
|
3.2
|
3.8
|
4.0
|
4.0
|
2.4
|
|
Return on average tangible
stockholders' equity (4)
|
5.4
|
6.3
|
6.3
|
6.4
|
3.7
|
|
Operating return on
average tangible
|
|
|
|
|
|
|
stockholders'
equity (3), (4)
|
7.4
|
8.0
|
7.1
|
6.7
|
4.2
|
|
Efficiency ratio
(3)
|
62.7
|
63.1
|
65.7
|
66.2
|
71.1
|
|
|
|
|
|
|
|
|
Common Share Data:
|
|
|
|
|
|
|
Basic and diluted earnings
per share
|
$
0.12
|
$
0.15
|
$
0.15
|
$
0.15
|
$
0.09
|
|
Operating earnings per
share (3)
|
0.17
|
0.19
|
0.17
|
0.15
|
0.10
|
|
Dividends paid per
share
|
0.1575
|
0.1575
|
0.1575
|
0.1550
|
0.1550
|
|
Dividend payout
ratio
|
127.7%
|
108.4%
|
106.4%
|
104.9%
|
172.5%
|
|
Operating dividend payout
ratio (3)
|
93.4
|
85.3
|
95.1
|
100.7
|
150.4
|
|
Book value per share (end
of period)
|
$
14.99
|
$
15.18
|
$
15.01
|
$
14.92
|
$
14.91
|
|
Tangible book value per
share (end of period) (3)
|
8.75
|
9.01
|
9.38
|
9.27
|
9.30
|
|
Stock price:
|
|
|
|
|
|
|
High
|
13.07
|
13.96
|
13.81
|
14.49
|
14.17
|
|
Low
|
10.91
|
10.50
|
12.55
|
12.17
|
12.20
|
|
Close (end of
period)
|
12.85
|
11.40
|
13.44
|
12.58
|
14.01
|
|
Common shares (end of
period) (in millions)
|
348.68
|
348.59
|
346.12
|
345.97
|
350.07
|
|
Weighted average diluted
common shares (in millions)
|
346.68
|
358.28
|
343.88
|
346.01
|
352.53
|
|
|
|
|
|
|
|
|
(1) Includes net security gains
(losses) of $8.6 million and $(1.0) million for the three months
ended Sept. 30, 2011 and Dec. 31, 2010, respectively.
|
|
(2) Includes a total of $23.0
million, $21.5 million, $9.2 million, $3.1 million and $7.0 million
of merger-related expenses,
|
|
core system
conversion costs and one-time charges for the three months ended
Dec. 31, 2011, Sept. 30, 2011,
|
|
June 30, 2011,
March 31, 2011 and Dec. 31, 2010, respectively.
|
|
(3) See non-GAAP financial
measures and reconciliation to GAAP.
|
|
(4) Annualized.
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
FINANCIAL HIGHLIGHTS -
Continued
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
(dollars in millions, except per
share data)
|
2011
|
2010
|
|
Earnings Data:
|
|
|
|
Net interest
income
|
$
923.6
|
$
699.0
|
|
Provision for loan
losses
|
63.7
|
60.0
|
|
Non-interest
income
|
307.6
|
270.0
|
|
Non-interest expense
(1)
|
871.9
|
782.0
|
|
Income before income tax
expense
|
295.6
|
127.0
|
|
Net income
|
198.8
|
85.7
|
|
Operating earnings
(2)
|
237.1
|
125.4
|
|
|
|
|
|
Selected Statistical
Data:
|
|
|
|
Net interest
margin
|
4.14%
|
3.70%
|
|
Operating net interest
margin (2)
|
4.07
|
3.70
|
|
Return on average
assets
|
0.76
|
0.39
|
|
Operating return on
average assets (2)
|
0.91
|
0.57
|
|
Return on average tangible
assets
|
0.83
|
0.42
|
|
Return on average
stockholders' equity
|
3.8
|
1.6
|
|
Return on average tangible
stockholders' equity
|
6.2
|
2.4
|
|
Operating return on
average tangible
|
|
|
|
stockholders'
equity (2)
|
7.4
|
3.5
|
|
Efficiency ratio
(2)
|
64.4
|
72.4
|
|
|
|
|
|
Common Share Data:
|
|
|
|
Basic and diluted earnings
per share
|
$
0.57
|
$
0.24
|
|
Operating earnings per
share (2)
|
0.68
|
0.35
|
|
Dividends paid per
share
|
0.6275
|
0.6175
|
|
Dividend payout
ratio
|
111.1%
|
254.5%
|
|
Operating dividend payout
ratio (2)
|
93.2
|
173.9
|
|
Book value per share (end
of period)
|
$
14.99
|
$
14.91
|
|
Tangible book value per
share (end of period) (2)
|
8.75
|
9.30
|
|
Stock price:
|
|
|
|
High
|
14.49
|
17.08
|
|
Low
|
10.50
|
12.20
|
|
Close (end of
period)
|
12.85
|
14.01
|
|
Common shares (end of
period) (in millions)
|
348.68
|
350.07
|
|
Weighted average diluted
common shares (in millions)
|
348.74
|
352.67
|
|
|
|
|
|
(1) Includes a total of $56.8
million and $58.9 million of merger-related expenses, core
system
|
|
conversion
costs and one-time charges for the twelve months ended December 31,
2011
|
|
and 2010,
respectively.
|
|
(2) See non-GAAP financial
measures and reconciliation to GAAP.
|
|
|
|
|
People's United Financial,
Inc.
|
|
FINANCIAL HIGHLIGHTS -
Continued
|
|
|
|
|
|
|
|
|
|
As of
and for the Three Months Ended
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
|
(dollars in millions)
|
2011
|
2011
|
2011
|
2011
|
2010
|
|
Financial Condition
Data:
|
|
|
|
|
|
|
General:
|
|
|
|
|
|
|
Total
assets
|
$
27,568
|
$
27,213
|
$
25,323
|
$
24,962
|
$
25,037
|
|
Loans
|
20,400
|
20,148
|
17,687
|
17,523
|
17,328
|
|
Securities
|
2,931
|
2,540
|
3,226
|
3,203
|
3,033
|
|
Short-term
investments (1)
|
411
|
779
|
822
|
926
|
1,120
|
|
Allowance for loan
losses
|
183
|
177
|
176
|
178
|
173
|
|
Goodwill and other
acquisition-related intangibles
|
2,174
|
2,151
|
1,947
|
1,953
|
1,962
|
|
Deposits
|
20,816
|
20,487
|
18,278
|
18,110
|
17,933
|
|
Borrowings
|
857
|
881
|
1,331
|
1,158
|
1,011
|
|
Subordinated notes
and debentures
|
160
|
159
|
159
|
176
|
182
|
|
Stockholders'
equity
|
5,225
|
5,291
|
5,194
|
5,160
|
5,219
|
|
Non-performing
assets (2)
|
337
|
305
|
315
|
292
|
303
|
|
Net loan
charge-offs
|
14.8
|
13.4
|
15.5
|
9.6
|
10.9
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
Loans
|
$
20,217
|
$
19,856
|
$
17,654
|
$
17,290
|
$
15,770
|
|
Securities
|
2,411
|
2,976
|
3,264
|
3,089
|
2,457
|
|
Short-term
investments (1)
|
854
|
756
|
629
|
843
|
1,418
|
|
Residential
mortgage loans held for sale
|
60
|
26
|
17
|
52
|
52
|
|
Total earning
assets
|
23,542
|
23,614
|
21,564
|
21,274
|
19,697
|
|
Total
assets
|
27,285
|
27,355
|
24,853
|
24,623
|
22,961
|
|
Deposits
|
20,597
|
20,259
|
18,225
|
17,944
|
16,531
|
|
Total funding
liabilities
|
21,653
|
21,499
|
19,353
|
19,121
|
17,236
|
|
Stockholders'
equity
|
5,302
|
5,515
|
5,177
|
5,185
|
5,335
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
Net loan
charge-offs to
|
|
|
|
|
|
|
average
loans (annualized)
|
0.29%
|
0.27%
|
0.35%
|
0.22%
|
0.28%
|
|
Non-performing
assets to originated loans,
|
|
|
|
|
|
|
real estate
owned and repossessed assets (2)
|
2.00
|
1.88
|
2.05
|
1.96
|
2.09
|
|
Allowance for loan
losses to:
|
|
|
|
|
|
|
Originated
loans (2)
|
1.04
|
1.09
|
1.15
|
1.19
|
1.19
|
|
Originated
non-performing loans (2)
|
59.7
|
68.5
|
68.0
|
73.8
|
70.3
|
|
Average
stockholders' equity to average total assets
|
19.4
|
20.2
|
20.8
|
21.1
|
23.2
|
|
Stockholders'
equity to total assets
|
19.0
|
19.4
|
20.5
|
20.7
|
20.8
|
|
Tangible
stockholders' equity to tangible assets (3)
|
12.0
|
12.5
|
13.9
|
13.9
|
14.1
|
|
Total risk-based
capital (4)
|
16.2
|
16.7
|
19.1
|
19.4
|
19.3
|
|
|
|
|
|
|
|
|
(1) Includes securities
purchased under agreements to resell.
|
|
(2) Excludes acquired
loans.
|
|
(3) See non-GAAP financial
measures and reconciliation to GAAP.
|
|
(4) Consolidated.
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
CONSOLIDATED STATEMENTS OF
CONDITION
|
|
|
|
|
|
|
|
Dec.
31,
|
Sept.
30,
|
Dec.
31,
|
|
(in millions)
|
2011
|
2011
|
2010
|
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
370.2
|
$
370.9
|
$
354.7
|
|
Short-term
investments
|
410.7
|
779.1
|
599.8
|
|
Total cash and cash
equivalents
|
780.9
|
1,150.0
|
954.5
|
|
Securities purchased under
agreements to resell
|
-
|
-
|
520.0
|
|
Securities:
|
|
|
|
|
Trading account
securities, at fair value
|
71.8
|
69.9
|
83.5
|
|
Securities available for
sale, at fair value
|
2,725.5
|
2,336.0
|
2,831.1
|
|
Securities held to
maturity, at amortized cost
|
56.4
|
56.4
|
55.1
|
|
Federal Home Loan Bank
stock, at cost
|
77.7
|
77.7
|
63.6
|
|
Total
securities
|
2,931.4
|
2,540.0
|
3,033.3
|
|
Residential mortgage loans held
for sale
|
101.9
|
45.4
|
88.5
|
|
Loans:
|
|
|
|
|
Commercial (1)
|
7,382.0
|
7,262.5
|
5,196.0
|
|
Commercial real estate
(1)
|
7,172.2
|
7,142.9
|
7,306.3
|
|
Residential
mortgage
|
3,628.4
|
3,502.0
|
2,647.5
|
|
Consumer
|
2,217.4
|
2,240.8
|
2,177.9
|
|
Total
loans
|
20,400.0
|
20,148.2
|
17,327.7
|
|
Less allowance for loan
losses
|
(182.9)
|
(177.0)
|
(172.5)
|
|
Total loans,
net
|
20,217.1
|
19,971.2
|
17,155.2
|
|
Goodwill and other
acquisition-related intangibles
|
2,174.2
|
2,151.2
|
1,962.0
|
|
Premises and
equipment
|
339.6
|
363.1
|
325.1
|
|
Bank-owned life
insurance
|
332.7
|
330.7
|
291.8
|
|
Other assets
|
690.1
|
661.4
|
706.7
|
|
Total
assets
|
$
27,567.9
|
$
27,213.0
|
$
25,037.1
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
4,506.2
|
$
4,217.5
|
$
3,872.6
|
|
Savings, interest-bearing
checking and money market
|
10,970.4
|
10,789.5
|
8,897.8
|
|
Time
|
5,339.2
|
5,479.7
|
5,162.7
|
|
Total
deposits
|
20,815.8
|
20,486.7
|
17,933.1
|
|
Borrowings:
|
|
|
|
|
Retail repurchase
agreements
|
497.2
|
519.8
|
472.2
|
|
Federal Home Loan Bank
advances
|
332.4
|
333.4
|
509.3
|
|
Federal funds purchased
and other borrowings
|
27.1
|
27.3
|
29.1
|
|
Total
borrowings
|
856.7
|
880.5
|
1,010.6
|
|
Subordinated notes and
debentures
|
159.6
|
159.4
|
182.2
|
|
Other liabilities
|
510.8
|
395.9
|
691.9
|
|
Total
liabilities
|
22,342.9
|
21,922.5
|
19,817.8
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
Common stock
|
3.9
|
3.9
|
3.7
|
|
Additional paid-in
capital
|
5,247.0
|
5,242.5
|
4,978.8
|
|
Retained earnings
|
744.1
|
757.7
|
772.6
|
|
Treasury stock, at
cost
|
(493.5)
|
(497.3)
|
(248.9)
|
|
Accumulated other comprehensive
loss (2)
|
(95.8)
|
(36.8)
|
(99.0)
|
|
Unallocated common stock of
Employee Stock Ownership Plan, at cost
|
(180.7)
|
(179.5)
|
(187.9)
|
|
Total stockholders'
equity
|
5,225.0
|
5,290.5
|
5,219.3
|
|
Total liabilities
and stockholders' equity
|
$
27,567.7
|
$
27,213.0
|
$
25,037.1
|
|
|
|
|
|
|
(1) Approximately $875 million
of loans secured, in part, by owner-occupied commercial properties
were reclassified
|
|
from commercial
real estate loans to commercial loans as of March 31,
2011.
|
|
(2) The change from Sept. 30,
2011 to Dec. 31, 2011 reflects, in part, the after-tax change in
the pension net
|
|
actuarial
loss.
|
|
|
|
|
|
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 share
data)
|
2011
|
2011
|
2011
|
2011
|
2010
|
|
Interest and dividend
income:
|
|
|
|
|
|
|
Commercial real estate
(1)
|
$
100.3
|
$
98.0
|
$
92.5
|
$
101.6
|
$
85.9
|
|
Commercial (1)
|
96.9
|
97.4
|
85.9
|
78.6
|
70.5
|
|
Residential
mortgage
|
35.6
|
34.5
|
29.7
|
29.3
|
27.1
|
|
Consumer
|
21.2
|
21.5
|
20.6
|
20.9
|
22.1
|
|
Total interest on
loans
|
254.0
|
251.4
|
228.7
|
230.4
|
205.6
|
|
Securities
|
17.3
|
21.7
|
23.4
|
21.0
|
13.6
|
|
Residential mortgage loans
held for sale
|
0.7
|
0.4
|
0.3
|
0.7
|
0.7
|
|
Short-term
investments
|
0.5
|
0.5
|
0.4
|
0.6
|
0.6
|
|
Securities purchased under
agreements to resell
|
-
|
-
|
-
|
0.1
|
0.3
|
|
Total interest and
dividend income
|
272.5
|
274.0
|
252.8
|
252.8
|
220.8
|
|
Interest expense:
|
|
|
|
|
|
|
Deposits
|
25.9
|
28.5
|
26.4
|
26.6
|
26.5
|
|
Borrowings
|
1.7
|
2.4
|
2.4
|
2.5
|
1.2
|
|
Subordinated notes and
debentures
|
2.8
|
3.1
|
2.8
|
3.4
|
3.3
|
|
Total interest
expense
|
30.4
|
34.0
|
31.6
|
32.5
|
31.0
|
|
Net interest
income
|
242.1
|
240.0
|
221.2
|
220.3
|
189.8
|
|
Provision for loan
losses
|
20.7
|
14.4
|
14.0
|
14.6
|
10.9
|
|
Net interest income
after provision for loan losses
|
221.4
|
225.6
|
207.2
|
205.7
|
178.9
|
|
Non-interest income:
|
|
|
|
|
|
|
Bank service
charges
|
31.6
|
35.8
|
32.9
|
31.0
|
30.7
|
|
Investment management
fees
|
8.3
|
8.4
|
8.3
|
8.2
|
7.9
|
|
Insurance
revenue
|
7.2
|
9.0
|
6.6
|
7.9
|
6.9
|
|
Brokerage
commissions
|
2.6
|
2.8
|
3.3
|
3.2
|
2.9
|
|
Net gains on sales of
residential mortgage loans
|
2.1
|
1.3
|
1.1
|
3.1
|
4.2
|
|
Net (losses) gains on
sales of acquired loans
|
(0.4)
|
(4.8)
|
7.2
|
5.5
|
-
|
|
Bank-owned life
insurance
|
1.7
|
2.0
|
1.4
|
1.2
|
1.0
|
|
Merchant services income,
net
|
1.1
|
1.1
|
1.1
|
1.0
|
1.1
|
|
Net security gains
(losses)
|
-
|
8.6
|
0.1
|
0.1
|
(1.0)
|
|
Other non-interest
income
|
17.5
|
20.5
|
14.6
|
13.4
|
14.4
|
|
Total non-interest
income
|
71.7
|
84.7
|
76.6
|
74.6
|
68.1
|
|
Non-interest expense:
|
|
|
|
|
|
|
Compensation and
benefits
|
111.0
|
110.1
|
102.5
|
105.4
|
98.3
|
|
Occupancy and
equipment
|
34.4
|
34.9
|
30.9
|
33.1
|
28.1
|
|
Professional and outside
service fees
|
18.7
|
18.6
|
17.4
|
15.9
|
19.8
|
|
Amortization of other
acquisition-related intangibles
|
7.0
|
7.0
|
6.0
|
5.9
|
6.1
|
|
Merger-related
expenses
|
13.3
|
20.1
|
6.4
|
3.1
|
4.8
|
|
Other non-interest
expense
|
45.8
|
41.2
|
43.8
|
39.4
|
42.0
|
|
Total non-interest
expense (2)
|
230.2
|
231.9
|
207.0
|
202.8
|
199.1
|
|
Income before
income tax expense
|
62.9
|
78.4
|
76.8
|
77.5
|
47.9
|
|
Income tax expense
|
19.9
|
25.5
|
25.6
|
25.8
|
15.9
|
|
Net
income
|
$
43.0
|
$
52.9
|
$
51.2
|
$
51.7
|
$
32.0
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
common share
|
$
0.12
|
$
0.15
|
$
0.15
|
$
0.15
|
$
0.09
|
|
|
|
|
|
|
|
|
(1) Approximately $875 million
of loans secured, in part, by owner-occupied commercial properties
were reclassified
|
|
from commercial
real estate loans to commercial loans as of March 31,
2011.
|
|
(2) In addition to
merger-related expenses, total non-interest expense includes $9.7
million, $1.4 million, $2.8 million
|
|
and $2.2 million
of non-operating expenses for the three months ended Dec. 31, 2011,
Sept. 30, 2011, June 30, 2011
|
|
and Dec. 31, 2010,
respectively. See non-GAAP financial measures and reconciliation to
GAAP.
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
CONSOLIDATED STATEMENTS OF
INCOME
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
(in millions, except per share
data)
|
2011
|
2010
|
|
Interest and dividend
income:
|
|
|
|
Commercial real
estate
|
$
392.4
|
$
312.1
|
|
Commercial
|
358.8
|
266.3
|
|
Residential
mortgage
|
129.1
|
109.4
|
|
Consumer
|
84.2
|
89.6
|
|
Total interest on
loans
|
964.5
|
777.4
|
|
Securities
|
83.4
|
43.5
|
|
Residential mortgage loans
held for sale
|
2.1
|
2.4
|
|
Short-term
investments
|
2.0
|
4.6
|
|
Securities purchased under
agreements to resell
|
0.1
|
0.9
|
|
Total interest and
dividend income
|
1,052.1
|
828.8
|
|
Interest expense:
|
|
|
|
Deposits
|
107.4
|
112.8
|
|
Borrowings
|
9.0
|
2.3
|
|
Subordinated notes and
debentures
|
12.1
|
14.7
|
|
Total interest
expense
|
128.5
|
129.8
|
|
Net interest
income
|
923.6
|
699.0
|
|
Provision for loan
losses
|
63.7
|
60.0
|
|
Net interest income
after provision for loan losses
|
859.9
|
639.0
|
|
Non-interest income:
|
|
|
|
Bank service
charges
|
131.3
|
126.3
|
|
Investment management
fees
|
33.2
|
32.0
|
|
Insurance
revenue
|
30.7
|
28.8
|
|
Brokerage
commissions
|
11.9
|
11.3
|
|
Net gains on sales of
residential mortgage loans
|
7.6
|
12.1
|
|
Net gains on sales of
acquired loans
|
7.5
|
-
|
|
Bank-owned life
insurance
|
6.3
|
6.7
|
|
Merchant services income,
net
|
4.3
|
4.3
|
|
Net security gains
(losses)
|
8.8
|
(1.0)
|
|
Other non-interest
income
|
66.0
|
49.5
|
|
Total non-interest
income
|
307.6
|
270.0
|
|
Non-interest expense:
|
|
|
|
Compensation and
benefits
|
429.0
|
380.4
|
|
Occupancy and
equipment
|
133.3
|
114.4
|
|
Professional and outside
service fees
|
70.6
|
72.7
|
|
Amortization of other
acquisition-related intangibles
|
25.9
|
21.7
|
|
Merger-related
expenses
|
42.9
|
23.3
|
|
Other non-interest
expense
|
170.2
|
169.5
|
|
Total non-interest
expense (1)
|
871.9
|
782.0
|
|
Income before
income tax expense
|
295.6
|
127.0
|
|
Income tax expense
|
96.8
|
41.3
|
|
Net
income
|
$
198.8
|
$
85.7
|
|
|
|
|
|
Basic and diluted earnings per
common share
|
$
0.57
|
$
0.24
|
|
|
|
|
|
(1) In addition to
merger-related expenses, total non-interest expense includes $13.9
million and $35.6 million
|
|
of non-operating
expenses for the twelve months ended Dec. 31, 2011 and 2010,
respectively.
|
|
See non-GAAP
financial measures and reconciliation to GAAP.
|
|
|
|
|
People's United Financial,
Inc.
|
|
AVERAGE BALANCE SHEET, INTEREST
AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
December 31,
2011
|
September
30, 2011
|
|
Three months ended
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
(dollars in millions)
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
853.9
|
$
0.5
|
0.25%
|
$
755.9
|
$
0.5
|
0.29%
|
|
Securities purchased
under
|
|
|
|
|
|
|
|
agreements to
resell
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Securities (2)
|
2,410.9
|
17.9
|
2.97
|
2,976.3
|
22.2
|
2.99
|
|
Residential mortgage loans held
for sale
|
60.3
|
0.7
|
4.61
|
25.6
|
0.4
|
5.80
|
|
Loans:
|
|
|
|
|
|
|
|
Commercial real
estate
|
7,114.9
|
100.3
|
5.64
|
7,157.0
|
98.0
|
5.48
|
|
Commercial
|
7,300.8
|
98.9
|
5.42
|
7,102.3
|
99.6
|
5.61
|
|
Residential
mortgage
|
3,571.6
|
35.6
|
3.99
|
3,356.4
|
34.5
|
4.10
|
|
Consumer
|
2,230.1
|
21.2
|
3.80
|
2,240.7
|
21.5
|
3.84
|
|
Total
loans
|
20,217.4
|
256.0
|
5.07
|
19,856.4
|
253.6
|
5.11
|
|
Total earning
assets
|
23,542.5
|
$
275.1
|
4.68%
|
23,614.2
|
$
276.7
|
4.69%
|
|
Other assets
|
3,742.2
|
|
|
3,740.5
|
|
|
|
Total
assets
|
$
27,284.7
|
|
|
$
27,354.7
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
4,330.6
|
$
-
|
- %
|
$
4,094.5
|
$
-
|
- %
|
|
Savings, interest-bearing
checking
|
|
|
|
|
|
|
|
and money
market
|
10,841.4
|
12.4
|
0.46
|
10,642.9
|
14.1
|
0.53
|
|
Time
|
5,425.2
|
13.5
|
1.00
|
5,522.0
|
14.4
|
1.04
|
|
Total
deposits
|
20,597.2
|
25.9
|
0.50
|
20,259.4
|
28.5
|
0.56
|
|
Borrowings:
|
|
|
|
|
|
|
|
Retail repurchase
agreements
|
527.4
|
0.4
|
0.33
|
520.6
|
0.5
|
0.43
|
|
Federal Home Loan Bank
advances
|
332.9
|
1.2
|
1.49
|
514.6
|
1.8
|
1.39
|
|
Federal funds purchased
and
|
|
|
|
|
|
|
|
other borrowings
|
36.0
|
0.1
|
0.78
|
27.9
|
0.1
|
0.95
|
|
Total
borrowings
|
896.3
|
1.7
|
0.78
|
1,063.1
|
2.4
|
0.91
|
|
Subordinated notes and
debentures
|
159.5
|
2.8
|
7.02
|
176.0
|
3.1
|
6.86
|
|
Total funding
liabilities
|
21,653.0
|
$
30.4
|
0.56%
|
21,498.5
|
$
34.0
|
0.63%
|
|
Other liabilities
|
330.2
|
|
|
341.0
|
|
|
|
Total
liabilities
|
21,983.2
|
|
|
21,839.5
|
|
|
|
Stockholders' equity
|
5,301.5
|
|
|
5,515.2
|
|
|
|
Total liabilities
and stockholders' equity
|
$
27,284.7
|
|
|
$
27,354.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
(3)
|
|
$
244.7
|
4.12%
|
|
$
242.7
|
4.06%
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
4.16%
|
|
|
4.11%
|
|
|
|
|
|
|
|
|
|
(1) Average yields earned
and rates paid are annualized.
|
|
|
|
|
|
|
(2) Average balances and
yields for securities available for sale are based on amortized
cost.
|
|
|
|
(3) The fully taxable
equivalent ("FTE") adjustment was $2.6 million, $2.7 million and
$0.9 million for the three months ended December 31, 2011,
September 30, 2011 and December 31, 2010, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
AVERAGE BALANCE SHEET, INTEREST
AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
December 31,
2010
|
|
Three months ended
|
Average
|
|
Yield/
|
|
(dollars in millions)
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
Short-term
investments
|
$
814.7
|
$
0.6
|
0.29%
|
|
Securities purchased
under
|
|
|
|
|
agreements to
resell
|
603.9
|
0.3
|
0.21
|
|
Securities (2)
|
2,456.7
|
13.6
|
2.22
|
|
Residential mortgage loans held
for sale
|
51.7
|
0.7
|
5.75
|
|
Loans:
|
|
|
|
|
Commercial real
estate
|
6,054.3
|
85.9
|
5.67
|
|
Commercial
|
5,086.5
|
71.4
|
5.62
|
|
Residential
mortgage
|
2,459.9
|
27.1
|
4.41
|
|
Consumer
|
2,169.5
|
22.1
|
4.07
|
|
Total
loans
|
15,770.2
|
206.5
|
5.24
|
|
Total earning
assets
|
19,697.2
|
$
221.7
|
4.50%
|
|
Other assets
|
3,263.3
|
|
|
|
Total
assets
|
$
22,960.5
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity:
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
3,633.5
|
$
-
|
- %
|
|
Savings, interest-bearing
checking
|
|
|
|
|
and money
market
|
8,249.0
|
11.5
|
0.56
|
|
Time
|
4,648.4
|
15.0
|
1.29
|
|
Total
deposits
|
16,530.9
|
26.5
|
0.64
|
|
Borrowings:
|
|
|
|
|
Retail repurchase
agreements
|
340.2
|
0.4
|
0.53
|
|
Federal Home Loan Bank
advances
|
178.2
|
0.8
|
1.69
|
|
Federal funds purchased
and
|
|
|
|
|
other borrowings
|
15.0
|
-
|
0.70
|
|
Total
borrowings
|
533.4
|
1.2
|
0.92
|
|
Subordinated notes and
debentures
|
171.3
|
3.3
|
7.75
|
|
Total funding
liabilities
|
17,235.6
|
$
31.0
|
0.72%
|
|
Other liabilities
|
390.0
|
|
|
|
Total
liabilities
|
17,625.6
|
|
|
|
Stockholders' equity
|
5,334.9
|
|
|
|
Total liabilities
and stockholders' equity
|
$
22,960.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
(3)
|
|
$
190.7
|
3.78%
|
|
|
|
|
|
|
Net interest margin
|
|
|
3.87%
|
|
|
|
|
|
|
(1) Average yields earned
and rates paid are annualized.
|
|
|
|
(2) Average balances and
yields for securities available for sale are based on amortized
cost.
|
|
(3) The FTE adjustment was
$2.6 million, $2.7 million and $0.9 million for the three months
ended December 31, 2011,
|
|
September
30, 2011 and December 31, 2010, respectively.
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
AVERAGE BALANCE SHEET, INTEREST
AND YIELD/RATE ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
December 31,
2011
|
December 31,
2010
|
|
Twelve months ended
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
(dollars in millions)
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
743.1
|
$
2.0
|
0.28%
|
$
1,725.0
|
$
4.6
|
0.27%
|
|
Securities purchased under
agreements to resell
|
27.3
|
0.1
|
0.17
|
456.2
|
0.9
|
0.20
|
|
Securities (1)
|
2,933.3
|
85.1
|
2.90
|
1,579.5
|
43.5
|
2.76
|
|
Residential mortgage loans held
for sale
|
38.8
|
2.1
|
5.42
|
43.4
|
2.4
|
5.59
|
|
Loans:
|
|
|
|
|
|
|
|
Commercial real
estate
|
6,971.8
|
392.4
|
5.63
|
5,594.8
|
312.1
|
5.58
|
|
Commercial
|
6,465.4
|
364.9
|
5.64
|
4,961.9
|
269.6
|
5.43
|
|
Residential
mortgage
|
3,126.8
|
129.1
|
4.13
|
2,428.6
|
109.4
|
4.51
|
|
Consumer
|
2,190.1
|
84.2
|
3.85
|
2,199.2
|
89.6
|
4.07
|
|
Total
loans
|
18,754.1
|
970.6
|
5.18
|
15,184.5
|
780.7
|
5.14
|
|
Total earning
assets
|
22,496.6
|
$
1,059.9
|
4.71%
|
18,988.6
|
$
832.1
|
4.38%
|
|
Other assets
|
3,531.6
|
|
|
3,027.6
|
|
|
|
Total
assets
|
$
26,028.2
|
|
|
$
22,016.2
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
4,032.8
|
$
-
|
- %
|
$
3,426.0
|
$
-
|
- %
|
|
Savings, interest-bearing
checking and money market
|
9,970.1
|
51.0
|
0.51
|
7,853.6
|
47.4
|
0.60
|
|
Time
|
5,276.6
|
56.4
|
1.07
|
4,533.5
|
65.4
|
1.44
|
|
Total
deposits
|
19,279.5
|
107.4
|
0.56
|
15,813.1
|
112.8
|
0.71
|
|
Borrowings:
|
|
|
|
|
|
|
|
Retail repurchase
agreements
|
486.6
|
2.0
|
0.41
|
209.2
|
1.0
|
0.48
|
|
Federal Home Loan Bank
advances
|
456.1
|
6.7
|
1.48
|
52.3
|
1.1
|
2.22
|
|
Federal funds purchased
and other borrowings
|
36.6
|
0.3
|
0.75
|
9.0
|
0.2
|
2.20
|
|
Total
borrowings
|
979.3
|
9.0
|
0.92
|
270.5
|
2.3
|
0.88
|
|
Subordinated notes and
debentures
|
170.4
|
12.1
|
7.08
|
179.6
|
14.7
|
8.17
|
|
Total funding
liabilities
|
20,429.2
|
$
128.5
|
0.63%
|
16,263.2
|
$
129.8
|
0.80%
|
|
Other liabilities
|
327.7
|
|
|
384.7
|
|
|
|
Total
liabilities
|
20,756.9
|
|
|
16,647.9
|
|
|
|
Stockholders' equity
|
5,271.3
|
|
|
5,368.3
|
|
|
|
Total liabilities
and stockholders' equity
|
$
26,028.2
|
|
|
$
22,016.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
(2)
|
|
$
931.4
|
4.08%
|
|
$
702.3
|
3.58%
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
4.14%
|
|
|
3.70%
|
|
|
|
|
|
|
|
|
|
(1) Average balances and
yields for securities available for sale are based on amortized
cost.
|
|
|
|
(2) The FTE adjustment was
$7.8 million and $3.3 million for the twelve months ended December
31, 2011 and 2010,
|
|
|
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
NON-PERFORMING ASSETS
|
|
|
|
|
|
|
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
|
(dollars in millions)
|
2011
|
2011
|
2011
|
2011
|
2010
|
|
Originated non-performing
loans:
|
|
|
|
|
|
|
Commercial Banking:
|
|
|
|
|
|
|
Commercial real estate
(1)
|
$ 106.7
|
$
91.0
|
$
90.2
|
$
71.7
|
$
82.5
|
|
Commercial and industrial
(1)
|
59.2
|
49.2
|
54.1
|
48.9
|
38.2
|
|
Equipment
financing
|
42.9
|
37.9
|
36.0
|
38.6
|
36.0
|
|
Total
|
208.8
|
178.1
|
180.3
|
159.2
|
156.7
|
|
Retail:
|
|
|
|
|
|
|
Residential
mortgage
|
68.9
|
65.5
|
65.8
|
70.4
|
78.8
|
|
Home equity
|
15.8
|
14.2
|
12.3
|
10.5
|
9.1
|
|
Other consumer
|
0.3
|
0.5
|
0.4
|
0.4
|
0.6
|
|
Total
|
85.0
|
80.2
|
78.5
|
81.3
|
88.5
|
|
Total originated
non-performing loans (2)
|
293.8
|
258.3
|
258.8
|
240.5
|
245.2
|
|
REO
|
26.8
|
27.7
|
33.5
|
38.1
|
39.8
|
|
Repossessed assets
|
16.1
|
19.2
|
23.1
|
13.5
|
18.1
|
|
Total
non-performing assets
|
$ 336.7
|
$ 305.2
|
$ 315.4
|
$
292.1
|
$ 303.1
|
|
|
|
|
|
|
|
|
Acquired non-performing loans
(contractual amount) (3)
|
$ 249.0
|
$ 241.6
|
$ 250.4
|
$
324.4
|
$ 359.8
|
|
|
|
|
|
|
|
|
Originated non-performing loans
as a percentage
|
|
|
|
|
|
|
of originated
loans
|
1.75%
|
1.60%
|
1.69%
|
1.62%
|
1.70%
|
|
Non-performing assets as a
percentage of:
|
|
|
|
|
|
|
Originated loans, REO and
repossessed assets
|
2.00
|
1.88
|
2.05
|
1.96
|
2.09
|
|
Tangible stockholders'
equity and allowance for loan losses
|
10.44
|
9.20
|
9.21
|
8.63
|
8.84
|
|
|
|
|
|
|
|
|
(1) Non-performing commercial
and industrial loans at March 31, 2011 include approximately $10.7
million of loans
|
|
secured, in part,
by owner-occupied commercial properties that were previously
classified as non-performing commercial
|
|
real estate
loans.
|
|
(2) Reported net of government
guarantees totaling $12.1 million at Dec. 31, 2011, $11.3 million
at Sept. 30, 2011,
|
|
$10.7 million at
June 30, 2011, $10.0 million at March 31, 2011 and $9.4 million at
Dec. 31, 2010.
|
|
(3) Represents acquired loans
that meet People's United Financial's definition of a
non-performing loan but for which the risk
|
|
of credit loss has
been considered by virtue of our estimate of acquisition-date fair
value and/or the existence of an FDIC
|
|
loss-share
agreement. Because acquired loans are initially recorded at an
amount estimated to be collectible, losses on such
|
|
loans, when
incurred, are first applied against the non-accretable difference
established in purchase accounting and
|
|
then to any
allowance for loan losses recognized subsequent to
acquisition.
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
PROVISION AND ALLOWANCE FOR LOAN
LOSSES
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
|
(dollars in millions)
|
2011
|
2011
|
2011
|
2011
|
2010
|
|
Allowance for loan losses on
originated loans:
|
|
|
|
|
|
|
Balance at beginning of
period
|
$ 177.0
|
$ 176.0
|
$ 177.5
|
$
172.5
|
$ 172.5
|
|
Charge-offs
|
(15.7)
|
(14.6)
|
(17.4)
|
(10.4)
|
(12.2)
|
|
Recoveries
|
0.9
|
1.2
|
1.9
|
0.8
|
1.3
|
|
Net loan
charge-offs
|
(14.8)
|
(13.4)
|
(15.5)
|
(9.6)
|
(10.9)
|
|
Provision for loan
losses
|
13.3
|
14.4
|
14.0
|
14.6
|
10.9
|
|
Balance at end of
period
|
175.5
|
177.0
|
176.0
|
177.5
|
172.5
|
|
|
|
|
|
|
|
|
Allowance for loan losses on
acquired loans:
|
|
|
|
|
|
|
Balance at beginning of
period
|
-
|
-
|
-
|
-
|
-
|
|
Provision for loan
losses
|
7.4
|
-
|
-
|
-
|
-
|
|
Balance at end of
period
|
7.4
|
-
|
-
|
-
|
-
|
|
Total allowance for
loan losses
|
$ 182.9
|
$ 177.0
|
$ 176.0
|
$
177.5
|
$ 172.5
|
|
|
|
|
|
|
|
|
Allowance for loan losses on
originated loans as a percentage of:
|
|
|
|
|
|
|
Originated
loans
|
1.04%
|
1.09%
|
1.15%
|
1.19%
|
1.19%
|
|
Originated non-performing
loans
|
59.7
|
68.5
|
68.0
|
73.8
|
70.3
|
|
Commercial banking allowance for
loan losses as a percentage of
|
|
|
|
|
|
|
originated commercial
banking loans
|
1.39
|
1.48
|
1.55
|
1.61
|
1.61
|
|
Retail allowance for loan losses
as a percentage of
|
|
|
|
|
|
|
originated retail
loans
|
0.29
|
0.26
|
0.25
|
0.26
|
0.25
|
|
|
|
|
|
|
|
|
NET LOAN CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
|
(dollars in millions)
|
2011
|
2011
|
2011
|
2011
|
2010
|
|
Commercial Banking:
|
|
|
|
|
|
|
Equipment
financing
|
$
4.5
|
$
0.8
|
$
2.3
|
$
1.2
|
$
3.0
|
|
Commercial real
estate
|
3.9
|
4.6
|
9.3
|
3.3
|
2.6
|
|
Commercial and
industrial
|
3.4
|
4.4
|
1.6
|
2.3
|
1.4
|
|
Total
|
11.8
|
9.8
|
13.2
|
6.8
|
7.0
|
|
Retail:
|
|
|
|
|
|
|
Residential
mortgage
|
1.6
|
2.1
|
1.2
|
1.6
|
2.0
|
|
Home equity
|
0.7
|
1.1
|
0.8
|
0.8
|
1.1
|
|
Other consumer
|
0.7
|
0.4
|
0.3
|
0.4
|
0.8
|
|
Total
|
3.0
|
3.6
|
2.3
|
2.8
|
3.9
|
|
Total
|
$
14.8
|
$
13.4
|
$
15.5
|
$
9.6
|
$
10.9
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average
loans (annualized)
|
0.29%
|
0.27%
|
0.35%
|
0.22%
|
0.28%
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATION TO GAAP
|
|
|
|
|
|
In addition to
evaluating People’s United Financial’s results of operations in
accordance with U.S. generally
|
|
accepted accounting principles
(“GAAP”), management routinely supplements this evaluation with an
analysis of
|
|
certain non-GAAP financial
measures, such as the efficiency and tangible equity ratios,
tangible book value per
|
|
share and operating earnings
metrics. Management believes these non-GAAP financial measures
provide information
|
|
useful to investors in
understanding People’s United Financial’s underlying operating
performance and trends, and
|
|
facilitates comparisons with the
performance of other banks and thrifts. 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
equity ratio and tangible book value per share are used to analyze
the relative strength
|
|
of People’s United Financial’s
capital position.
|
|
|
|
The efficiency
ratio, which represents an approximate measure of the cost required
by People’s United Financial
|
|
to generate a dollar of revenue,
is the ratio of (i) total non-interest expense (excluding
goodwill impairment
|
|
charges, amortization of other
acquisition-related intangibles and certain purchase
accounting-related fair value
|
|
adjustments, losses on real
estate assets and non-recurring expenses) (the numerator) to
(ii) net interest income on
|
|
a fully taxable equivalent basis
(excluding certain purchase accounting-related fair value
adjustments) plus total
|
|
non-interest income (including
the fully taxable equivalent adjustment on bank-owned life
insurance income, and
|
|
excluding gains and losses on
sales of assets other than residential mortgage loans, and
non-recurring income)
|
|
(the denominator). People’s
United Financial 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 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
Financial’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, merger-related expenses, core system conversion costs,
charges
|
|
related to executive-level
management separation costs, severance-related costs, and real
estate asset writedowns,
|
|
are generally also excluded when
calculating the efficiency ratio. Operating earnings per
share is calculated by
|
|
dividing operating earnings by
the weighted average number of dilutive common shares outstanding
for the
|
|
respective period. Operating
return on average assets is calculated by dividing operating
earnings (annualized) by
|
|
average assets. Operating return
on average tangible stockholders' equity is calculated by dividing
operating
|
|
earnings (annualized) by average
tangible stockholders' equity. The operating dividend payout ratio
is calculated by
|
|
dividing dividends paid by
operating earnings for the respective period.
|
|
|
|
Operating net
interest margin excludes from the net interest margin those items
that management considers to be
|
|
of such an infrequent nature
that, by excluding such items, People’s United Financial’s net
interest margin can be
|
|
measured and assessed on a more
consistent basis from period to period. Items excluded from
operating net
|
|
interest margin include, but are
not limited to, cost recovery income on acquired loans and changes
in the
|
|
accretable yield on acquired
loans stemming from periodic cash flow reassessments. Operating net
interest margin
|
|
is calculated by dividing
operating net interest income (annualized) by average earning
assets.
|
|
|
|
The tangible equity
ratio is the ratio of (i) tangible stockholders’ equity (total
stockholders’ equity less goodwill
|
|
and other acquisition-related
intangibles) (the numerator) to (ii) tangible assets (total
assets less goodwill and other
|
|
acquisition-related intangibles)
(the denominator). Tangible book value per share is calculated by
dividing tangible
|
|
stockholders’ equity by common
shares (total common shares issued, less common shares classified
as treasury
|
|
shares and unallocated ESOP
common shares).
|
|
|
|
In light of
diversity in presentation among financial institutions, the
methodologies used by People’s United
|
|
Financial for determining the
non-GAAP financial measures discussed above may differ from those
used by other
|
|
financial
institutions.
|
|
|
People's United Financial,
Inc.
|
|
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATION TO GAAP - continued
|
|
|
|
|
|
|
|
|
|
|
EFFICIENCY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Twelve
Months Ended
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
Dec.
31,
|
Dec.
31,
|
|
(dollars in millions)
|
2011
|
2011
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
Total non-interest
expense
|
$
230.2
|
$
231.9
|
$
207.0
|
$
202.8
|
$
199.1
|
$
871.9
|
$
782.0
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization
of:
|
|
|
|
|
|
|
|
|
Other
acquisition-related intangibles
|
(7.0)
|
(7.0)
|
(6.0)
|
(5.9)
|
(6.1)
|
(25.9)
|
(21.7)
|
|
Purchase
accounting-related
|
|
|
|
|
|
|
|
|
fair value
adjustments (1)
|
(0.8)
|
(0.8)
|
(0.8)
|
(0.8)
|
(0.8)
|
(3.2)
|
(3.2)
|
|
Merger-related
expenses
|
(13.3)
|
(20.1)
|
(6.4)
|
(3.1)
|
(4.8)
|
(42.9)
|
(23.3)
|
|
Severance-related
costs
|
(3.9)
|
(1.4)
|
-
|
-
|
-
|
(5.3)
|
-
|
|
Executive-level separation
costs
|
(1.0)
|
-
|
(2.8)
|
-
|
-
|
(3.8)
|
(15.3)
|
|
Real estate asset
writedowns
|
(4.8)
|
-
|
-
|
-
|
-
|
(4.8)
|
-
|
|
Other (2)
|
(4.0)
|
(2.3)
|
(1.9)
|
(2.1)
|
(2.7)
|
(10.3)
|
(9.4)
|
|
Total
|
$
195.4
|
$
200.3
|
$
189.1
|
$
190.9
|
$
184.7
|
$
775.7
|
$
709.1
|
|
|
|
|
|
|
|
|
|
|
Net interest income (FTE basis)
(3)
|
$
244.7
|
$
242.7
|
$
222.5
|
$
221.5
|
$
190.7
|
$
931.4
|
$
702.3
|
|
Total non-interest
income
|
71.7
|
84.7
|
76.6
|
74.6
|
68.1
|
307.6
|
270.0
|
|
Total revenues
|
316.4
|
327.4
|
299.1
|
296.1
|
258.8
|
1,239.0
|
972.3
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
BOLI FTE adjustment
(3)
|
0.8
|
0.9
|
0.8
|
0.6
|
0.5
|
3.1
|
3.6
|
|
Purchase
accounting-related
|
|
|
|
|
|
|
|
|
fair value
adjustments (1)
|
(6.0)
|
(7.3)
|
(4.7)
|
(5.0)
|
(0.6)
|
(23.0)
|
3.0
|
|
Net security (gains)
losses
|
-
|
(8.6)
|
(0.1)
|
(0.1)
|
1.0
|
(8.8)
|
1.0
|
|
Losses (gains) on sales of
acquired loans
|
0.4
|
4.8
|
(7.2)
|
(5.5)
|
-
|
(7.5)
|
-
|
|
Other (4)
|
(0.1)
|
0.1
|
-
|
2.2
|
-
|
2.2
|
-
|
|
Total
|
$
311.5
|
$
317.3
|
$
287.9
|
$
288.3
|
$
259.7
|
$
1,205.0
|
$
979.9
|
|
Efficiency ratio
|
62.7%
|
63.1%
|
65.7%
|
66.2%
|
71.1%
|
64.4%
|
72.4%
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects the impact of
amortization and accretion associated with certain purchase
accounting-related fair value adjustments
|
|
recognized in connection with
past business combinations. Amounts deducted from non-interest
expense represent the impact of
|
|
adjustments made to acquired
premises and equipment to reflect the fair value of such assets and
which generally have a
|
|
remaining life of approximately
6 years at December 31, 2011. Amounts added to (deducted from)
total revenues represent the
|
|
impact of adjustments made to
loans acquired prior to January 1, 2010 and liabilities
assumed (i.e. time deposits, FHLB
|
|
advances, repurchase agreements
and subordinated notes and debentures) as a result of interest
rate-related changes applicable
|
|
to such instruments and which
generally have a weighted average remaining life of approximately 7
years at December 31,
|
|
2011. These adjustments are made
because management believes such income and expense amounts are not
relevant for
|
|
purposes of evaluating operating
efficiency.
|
|
|
|
(2) Items classified as
“other” and deducted from non-interest expense include, as
applicable, certain franchise taxes, real estate
|
|
owned expenses and contract
termination costs.
|
|
|
|
(3) Fully taxable
equivalent.
|
|
|
|
(4) Items classified as
“other” and added to (deducted from) total revenues include, as
applicable, asset write-offs, gains associated
|
|
with the sale of branch
locations and mortgage servicing rights, and interest on an income
tax refund.
|
|
|
|
|
|
|
|
|
|
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
share data)
|
2011
|
2011
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
Net income, as
reported
|
$
43.0
|
$
52.9
|
$
51.2
|
$
51.7
|
$
32.0
|
$
198.8
|
$
85.7
|
|
Adjustments to arrive at
operating earnings:
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
13.3
|
20.1
|
6.4
|
3.1
|
4.8
|
42.9
|
23.3
|
|
Severance-related
costs
|
3.9
|
1.4
|
-
|
-
|
-
|
5.3
|
-
|
|
Executive-level separation
costs
|
1.0
|
-
|
2.8
|
-
|
-
|
3.8
|
15.3
|
|
Real estate asset
writedowns
|
4.8
|
-
|
-
|
-
|
-
|
4.8
|
-
|
|
Core system conversion
costs
|
-
|
-
|
-
|
-
|
2.2
|
-
|
20.3
|
|
Total pre-tax
adjustments
|
23.0
|
21.5
|
9.2
|
3.1
|
7.0
|
56.8
|
58.9
|
|
Tax effect
|
(7.3)
|
(7.1)
|
(3.1)
|
(1.0)
|
(2.3)
|
(18.5)
|
(19.2)
|
|
Total adjustments,
net of tax
|
15.7
|
14.4
|
6.1
|
2.1
|
4.7
|
38.3
|
39.7
|
|
Operating
earnings
|
$
58.7
|
$
67.3
|
$
57.3
|
$
53.8
|
$
36.7
|
$
237.1
|
$
125.4
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, as
reported
|
$
0.12
|
$
0.15
|
$
0.15
|
$
0.15
|
$
0.09
|
$
0.57
|
$
0.24
|
|
Adjustments to arrive
at
|
|
|
|
|
|
|
|
|
operating earnings per
share:
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
0.03
|
0.04
|
0.02
|
-
|
0.01
|
0.09
|
0.04
|
|
Severance-related
costs
|
0.01
|
-
|
-
|
-
|
-
|
0.01
|
-
|
|
Executive-level separation
costs
|
-
|
-
|
-
|
-
|
-
|
-
|
0.04
|
|
Real estate asset
writedowns
|
0.01
|
-
|
-
|
-
|
-
|
0.01
|
-
|
|
Core system conversion
costs
|
-
|
-
|
-
|
-
|
-
|
-
|
0.03
|
|
Total adjustments
per share
|
0.05
|
0.04
|
0.02
|
-
|
0.01
|
0.11
|
0.11
|
|
Operating earnings
per share
|
$
0.17
|
$
0.19
|
$
0.17
|
$
0.15
|
$
0.10
|
$
0.68
|
$
0.35
|
|
|
|
|
|
|
|
|
|
|
Average total assets
|
$ 27,285
|
$ 27,355
|
$
24,853
|
$
24,623
|
$ 22,961
|
$
26,028
|
$
22,016
|
|
|
|
|
|
|
|
|
|
|
Operating return on
|
|
|
|
|
|
|
|
|
average assets
(annualized)
|
0.86%
|
0.98%
|
0.92%
|
0.87%
|
0.64%
|
0.91%
|
0.57%
|
|
|
|
|
|
|
|
|
|
|
OPERATING NET INTEREST
MARGIN
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
Dec.
31,
|
Dec.
31,
|
|
(dollars in millions)
|
2011
|
2011
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
Net interest income (FTE basis)
(1)
|
$
244.7
|
$
242.7
|
$
222.5
|
$
221.5
|
$
190.7
|
$
931.4
|
$
702.3
|
|
Adjustments to arrive
at
|
|
|
|
|
|
|
|
|
operating net interest
income:
|
|
|
|
|
|
|
|
|
Cost recovery
income
|
(5.0)
|
-
|
-
|
-
|
-
|
(5.0)
|
-
|
|
Changes in accretable
yield
|
-
|
-
|
(2.2)
|
(9.0)
|
-
|
(11.2)
|
-
|
|
Total
adjustments
|
(5.0)
|
-
|
(2.2)
|
(9.0)
|
-
|
(16.2)
|
-
|
|
Operating net
interest income
|
$
239.7
|
$
242.7
|
$
220.3
|
$
212.5
|
$
190.7
|
$
915.2
|
$
702.3
|
|
|
|
|
|
|
|
|
|
|
Net interest margin, as reported
(2)
|
4.16%
|
4.11%
|
4.13%
|
4.16%
|
3.87%
|
4.14%
|
3.70%
|
|
Adjustments to arrive
at
|
|
|
|
|
|
|
|
|
operating net interest
margin: (2)
|
|
|
|
|
|
|
|
|
Cost recovery
income
|
(0.09)
|
-
|
-
|
-
|
-
|
(0.02)
|
-
|
|
Changes in accretable
yield
|
-
|
-
|
(0.04)
|
(0.16)
|
-
|
(0.05)
|
-
|
|
Total
adjustments
|
(0.09)
|
-
|
(0.04)
|
(0.16)
|
-
|
(0.07)
|
-
|
|
Operating net
interest margin (2)
|
4.07%
|
4.11%
|
4.09%
|
4.00%
|
3.87%
|
4.07%
|
3.70%
|
|
|
|
|
|
|
|
|
|
|
Total earning assets
|
$ 23,542
|
$ 23,614
|
$
21,564
|
$
21,274
|
$ 19,697
|
$
22,497
|
$
18,989
|
|
|
|
|
|
|
|
|
|
|
(1) Fully taxable
equivalent.
|
|
(2) Three month margins
are annualized.
|
|
|
|
|
|
|
|
|
|
People's United Financial,
Inc.
|
|
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATION TO GAAP - continued
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN ON AVERAGE
TANGIBLE STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
Twelve
Months Ended
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
Dec.
31,
|
Dec.
31,
|
|
(dollars in millions)
|
2011
|
2011
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
Operating earnings
|
$
58.7
|
$
67.3
|
$
57.3
|
$
53.8
|
$
36.7
|
$
237.1
|
$
125.4
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
$
5,302
|
$
5,515
|
$
5,177
|
$
5,185
|
$
5,335
|
$
5,271
|
$
5,368
|
|
Less: Average goodwill and
average other
|
|
|
|
|
|
|
|
|
acquisition-related intangibles
|
2,148
|
2,154
|
1,950
|
1,957
|
1,829
|
2,053
|
1,753
|
|
Average tangible stockholders'
equity
|
$
3,154
|
$
3,361
|
$
3,227
|
$
3,228
|
$
3,506
|
$
3,218
|
$
3,615
|
|
|
|
|
|
|
|
|
|
|
Operating return on average
tangible
|
|
|
|
|
|
|
|
|
stockholders' equity
(annualized)
|
7.4%
|
8.0%
|
7.1%
|
6.7%
|
4.2%
|
7.4%
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
OPERATING 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)
|
2011
|
2011
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
Dividends paid
|
$
54.8
|
$
57.4
|
$
54.5
|
$
54.2
|
$
55.2
|
$
220.9
|
$
218.1
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
$
58.7
|
$
67.3
|
$
57.3
|
$
53.8
|
$
36.7
|
$
237.1
|
$
125.4
|
|
|
|
|
|
|
|
|
|
|
Operating dividend payout
ratio
|
93.4%
|
85.3%
|
95.1%
|
100.7%
|
150.4%
|
93.2%
|
173.9%
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
|
|
|
(dollars in millions)
|
2011
|
2011
|
2011
|
2011
|
2010
|
|
|
|
Total stockholders'
equity
|
$
5,225
|
$
5,291
|
$
5,194
|
$
5,160
|
$
5,219
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
acquisition-related intangibles
|
2,174
|
2,151
|
1,947
|
1,953
|
1,962
|
|
|
|
Tangible stockholders'
equity
|
$
3,051
|
$
3,140
|
$
3,247
|
$
3,207
|
$
3,257
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$ 27,568
|
$ 27,213
|
$
25,323
|
$
24,962
|
$ 25,037
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
acquisition-related intangibles
|
2,174
|
2,151
|
1,947
|
1,953
|
1,962
|
|
|
|
Tangible assets
|
$ 25,394
|
$ 25,062
|
$
23,376
|
$
23,009
|
$ 23,075
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity ratio
|
12.0%
|
12.5%
|
13.9%
|
13.9%
|
14.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK VALUE PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31,
|
|
|
|
(in millions, except per share
data)
|
2011
|
2011
|
2011
|
2011
|
2010
|
|
|
|
Tangible stockholders'
equity
|
$
3,051
|
$
3,140
|
$
3,247
|
$
3,207
|
$
3,257
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued
|
395.42
|
395.46
|
377.02
|
376.95
|
376.62
|
|
|
|
Less: Shares classified as
treasury shares
|
38.03
|
38.07
|
22.01
|
22.01
|
17.49
|
|
|
|
Unallocated ESOP shares
|
8.71
|
8.80
|
8.89
|
8.97
|
9.06
|
|
|
|
Common shares
|
348.68
|
348.59
|
346.12
|
345.97
|
350.07
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share
|
$
8.75
|
$
9.01
|
$
9.38
|
$
9.27
|
$
9.30
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE People's United Financial, Inc.