People's United Financial Reports Second Quarter Operating Earnings And Net Income Of $0.20 Per Share

BRIDGEPORT, Conn., July 18, 2013 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported net income of $62.1 million, or $0.20 per share, for the second quarter of 2013, compared to $64.6 million, or $0.19 per share, for the second quarter of 2012, and $52.5 million, or $0.16 per share, for the first quarter of 2013. Operating earnings were $62.4 million, or $0.20 per share, for the second quarter of 2013, compared to $67.0 million, or $0.20 per share, for the second quarter of 2012, and $57.9 million, or $0.18 per share, for the first quarter of 2013.

The Company's Board of Directors declared a $0.1625 per share quarterly dividend, payable August 15, 2013 to shareholders of record on August 1, 2013. Based on the closing stock price on July 17, 2013, the dividend yield on People's United Financial common stock is 4.2 percent.

During the second quarter of 2013 the Company repurchased 11.2 million shares of People's United Financial common stock at a weighted average price of $13.63 per share and, during the first six months of 2013, the Company repurchased 22.4 million shares of common stock at a weighted average price of $13.30 per share. Under the existing share repurchase authorization, 11.0 million shares of common stock remain available for repurchase.

"Our results continue to reflect the benefits from the investments we have made in talent over the past three years that have strengthened, and will continue to strengthen, both our robust product offerings and expanded geographic footprint," stated Jack Barnes, President and Chief Executive Officer. "This quarter we experienced annualized loan growth of 13 percent and deposit growth of 4 percent. Our continued progress in loan growth, both this quarter and over the past 11 quarters, is a tribute to both our relationship managers and our customers. These relationships bring our brand to life every day."

Barnes concluded, "As we expected, our net interest margin has now largely stabilized. This should allow net interest income to increase at a pace more closely aligned with our earning asset growth in the quarters ahead and, in fact, net interest income this quarter increased slightly from the first quarter. Our strong business fundamentals, ongoing ability to leverage our brand in attractive markets, and prospects for growth continue to be the foundations of our strength relative to others in the industry."

"On an operating basis, earnings were $62 million, or 20 cents per share, this quarter," stated Kirk W. Walters, Senior Executive Vice President and Chief Financial Officer. "The net interest margin reflects the impact of strong loan originations and the benefit of one more calendar day in this quarter, while non-interest income demonstrates the ongoing improvement in most of our fee-based businesses. Cost control continues to remain an important area of focus. The modest increase in operating expenses this quarter primarily reflects the timing of certain advertising and promotion expenses."

Walters concluded, "We certainly are pleased with the continued improvement in asset quality. Our low loan charge-off ratio is a reflection of the Company's historically strong underwriting standards, the economic strength of the geography in which we operate and the resilience of our customers. Of particular note, non-performing loans in the acquired portfolio declined $22 million, or 12 percent, from March 31, 2013."

Net loan charge-offs as a percentage of average loans on an annualized basis were 0.19 percent in the second quarter of 2013 compared to 0.24 percent in the first quarter of 2013. For the originated loan portfolio, non-performing loans equaled 1.18 percent of loans at June 30, 2013, compared to 1.25 percent at March 31, 2013 and 1.52 percent at June 30, 2012. Non-performing assets (excluding acquired non-performing loans) equaled 1.33 percent of originated loans, REO and repossessed assets at June 30, 2013, compared to 1.42 percent at March 31, 2013 and 1.67 percent at June 30, 2012.

Operating return on average assets was 0.81 percent for the second quarter of 2013, compared to 0.77 percent for the first quarter of 2013 and 0.97 percent for the second quarter of 2012. Operating return on average tangible stockholders' equity was 9.3 percent for the second quarter of 2013, compared to 8.1 percent for the first quarter of 2013 and 8.9 percent for the second quarter of 2012.

At June 30, 2013, People's United Financial's tier 1 common and total risk-based capital ratios were 10.8 percent and 12.8 percent, respectively, and the tangible equity ratio stood at 8.7 percent. People's United Bank's tier 1 and total risk-based capital ratios were 11.9 percent and 13.2 percent, respectively, at June 30, 2013.

People's United Financial, a diversified financial services company with $31 billion in assets, provides commercial and retail banking, as well as wealth management services through a network of 418 branches in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine. Through its subsidiaries, People's United Financial provides equipment financing, brokerage and insurance services. Assets managed and administered, which are not reported as assets of People's United Financial, totaled $15.5 billion at June 30, 2013.

2Q 2013 Financial Highlights

Summary

Net income was $62.1 million, or $0.20 per share.
- Operating earnings were $62.4 million, or $0.20 per share.
Net interest income totaled $220.9 million in 2Q13 compared to $219.3 million in 1Q13.
- Interest income on acquired loans decreased $3.1 million from 1Q13 to $34.0 million.
Net interest margin decreased 5 basis points from 1Q13 to 3.33%.
- The effect of one more calendar day in 2Q13 benefited the margin by 2 basis points.
- The effects of new loan volume at lower rates, and loan repricing and amortization reduced the margin by 5 and 1 basis points, respectively.
Provision for loan losses totaled $9.2 million.
- Net loan charge-offs totaled $10.8 million, of which $4.3 million related to loans with specific reserves established in prior periods.
- Reflects a $3.6 million increase in the originated allowance for loan losses due to loan growth and a $0.9 million allowance reversal related to acquired loans sold during the period.
Non-interest income was $86.1 million in 2Q13 compared to $82.9 million in 1Q13.
- Bank service charges increased $2.0 million from 1Q13, in part due to the seasonal nature of certain fee categories.
- Investment management fees increased $0.4 million from 1Q13.
- Insurance revenue decreased $1.2 million from 1Q13, primarily reflecting the seasonal nature of insurance renewals.
- Net gains on sales of acquired loans totaled $5.8 million in 2Q13.
- Assets under administration and those under full discretionary management, neither of which are reported as assets of People's United Financial, totaled $10.7 billion and $4.8 billion, respectively, at June 30, 2013.
Non-interest expense totaled $205.8 million in 2Q13 compared to $212.0 million in 1Q13.
- Operating non-interest expense was $205.4 million in 2Q13 compared to $204.0 million in 1Q13. Excluding operating lease expense and amortization of acquisition-related intangible assets, operating non-interest expense totaled $191.2 million in 2Q13 compared to $190.0 million in 1Q13.
- Compensation and benefits expense decreased $3.8 million from 1Q13, primarily reflecting lower payroll-related costs in 2Q13.
- Compared to 1Q13, real estate owned expenses increased $2.0 million, advertising and promotion expenses increased $1.9 million and professional and outside service fees increased $1.0 million.
- Efficiency ratio in 2Q13 decreased to 62.7% from 64.1% in 1Q13, primarily reflecting the increase in total revenues.
Effective income tax rate was 32.5% for 2Q13 and 32.4% for the full year of 2012.

Commercial Banking

Commercial banking loans, excluding acquired loans, increased $747 million from March 31, 2013.
Average commercial banking loans totaled $16.2 billion in 2Q13, an increase of $538 million, or 14% annualized, from 1Q13.
The ratio of originated non-performing commercial banking loans to originated commercial banking loans was 1.10% at June 30, 2013 compared to 1.13% at March 31, 2013.
- Non-performing commercial banking assets, excluding acquired non-performing loans, totaled $183.8 million at June 30, 2013 compared to $179.0 million at March 31, 2013.
Net loan charge-offs totaled $6.9 million, or 0.17% annualized, of average commercial banking loans in 2Q13, compared to $9.4 million, or 0.24% annualized, in 1Q13.
- Excluding acquired loan charge-offs, net loan charge-offs totaled $6.4 million, or 0.16% annualized, in 1Q13.
For the originated commercial banking portfolio, the allowance for loan losses as a percentage of loans was 1.05% at June 30, 2013 compared to 1.11% at March 31, 2013.
The commercial banking originated allowance for loan losses represented 96% of originated non-performing commercial banking loans at June 30, 2013, compared to 98% at March 31, 2013.
Commercial deposits totaled $5.8 billion at June 30, 2013 compared to $5.6 billion at March 31, 2013.

Retail Banking

Residential mortgage loans, excluding acquired loans, increased $144 million from March 31, 2013.
Average residential mortgage loans totaled $4.0 billion in 2Q13, an increase of $116 million, or 12% annualized, from 1Q13.
The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 1.58% at June 30, 2013 compared to 1.84% at March 31, 2013.
Net loan charge-offs totaled $2.3 million, or 0.23% annualized, of average residential mortgage loans in 2Q13, compared to $1.9 million, or 0.19% annualized, in 1Q13.
Home equity loans, excluding acquired loans, increased $21 million from March 31, 2013.
Average home equity loans totaled $2.0 billion in 2Q13, unchanged from 1Q13.
The ratio of originated non-performing home equity loans to originated home equity loans was 1.06% at June 30, 2013 compared to 1.13% at March 31, 2013.
Net loan charge-offs totaled $1.4 million, or 0.28% annualized, of average home equity loans in 2Q13, compared to $1.5 million, or 0.30% annualized, in 1Q13.
Retail deposits totaled $16.2 billion at both June 30, 2013 and March 31, 2013.

Conference Call
On July 18, 2013, 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, 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 acquisitions; 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
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,
(dollars in millions, except per share data)	2013	2013	2012	2012	2012
Earnings Data:
Net interest income	$ 220.9	$ 219.3	$ 225.1	$ 234.8	$ 235.6
Provision for loan losses	9.2	12.4	12.0	15.1	10.6
Non-interest income	86.1	82.9	84.3	81.4	75.7
Non-interest expense	205.8	212.0	207.4	208.9	205.7
Operating non-interest expense (1)	205.4	204.0	204.5	205.7	202.1
Income before income tax expense	92.0	77.8	90.0	92.2	95.0
Net income	62.1	52.5	61.2	62.2	64.6
Operating earnings (1)	62.4	57.9	63.2	64.4	67.0

Selected Statistical Data:
Net interest margin (2)	3.33%	3.38%	3.63%	3.89%	3.96%
Operating net interest margin (1), (2)	3.33	3.38	3.63	3.82	3.88
Return on average assets (2)	0.81	0.70	0.85	0.88	0.93
Operating return on average assets (1), (2)	0.81	0.77	0.87	0.91	0.97
Return on average tangible assets (2)	0.87	0.75	0.91	0.95	1.01
Return on average stockholders' equity (2)	5.2	4.2	4.8	4.8	5.0
Return on average tangible stockholders' equity (2)	9.3	7.4	8.3	8.3	8.5
Operating return on average tangible
stockholders' equity (1), (2)	9.3	8.1	8.6	8.6	8.9
Efficiency ratio (1)	62.7	64.1	63.0	61.4	61.4

Common Share Data:
Basic and diluted earnings per share	$ 0.20	$ 0.16	$ 0.18	$ 0.18	$ 0.19
Operating earnings per share (1)	0.20	0.18	0.19	0.19	0.20
Dividends paid per share	0.1625	0.16	0.16	0.16	0.16
Dividend payout ratio	83.6%	100.6%	87.4%	87.3%	85.4%
Operating dividend payout ratio (1)	83.2	91.2	84.8	84.3	82.2
Book value per share (end of period)	$ 15.11	$ 15.24	$ 15.21	$ 15.20	$ 15.09
Tangible book value per share (end of period) (1)	8.20	8.54	8.71	8.77	8.72
Stock price:
High	15.00	13.61	12.50	12.55	13.50
Low	12.62	12.22	11.36	11.20	11.25
Close (end of period)	14.90	13.42	12.09	12.14	11.61
Common shares (end of period) (in millions)	309.59	320.65	331.27	335.95	340.33
Weighted average diluted common shares (in millions)	313.52	325.21	331.39	336.48	340.67

(1) See Non-GAAP financial measures and reconciliation to GAAP.
(2) Annualized.

People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued

	Six Months Ended
	June 30,
(dollars in millions, except per share data)	2013	2012
Earnings Data:
Net interest income	$ 440.2	$ 468.8
Provision for loan losses	21.6	22.1
Non-interest income	169.0	148.1
Non-interest expense	417.8	414.3
Operating non-interest expense (1)	409.4	407.7
Income before income tax expense	169.8	180.5
Net income	114.6	121.9
Operating earnings (1)	120.3	126.3

Selected Statistical Data:
Net interest margin (2)	3.35%	3.97%
Operating net interest margin (1), (2)	3.35	3.93
Return on average assets (2)	0.75	0.88
Operating return on average assets (1), (2)	0.79	0.91
Return on average tangible assets (2)	0.81	0.96
Return on average stockholders' equity (2)	4.7	4.7
Return on average tangible stockholders' equity (2)	8.3	8.0
Operating return on average tangible
stockholders' equity (1), (2)	8.7	8.3
Efficiency ratio (1)	63.4	62.5

Common Share Data:
Basic and diluted earnings per share	$ 0.36	$ 0.36
Operating earnings per share (1)	0.38	0.38
Dividends paid per share	0.3225	0.3175
Dividend payout ratio	91.3%	90.3%
Operating dividend payout ratio (1)	87.0	87.1
Book value per share (end of period)	$ 15.11	$ 15.09
Tangible book value per share (end of period) (1)	8.20	8.72
Stock price:
High	15.00	13.79
Low	12.22	11.25
Close (end of period)	14.90	11.61
Common shares (end of period) (in millions)	309.59	340.33
Weighted average diluted common shares (in millions)	319.33	342.82

(1) See Non-GAAP financial measures and reconciliation to GAAP.
(2) Annualized.

People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued

	As of and for the Three Months Ended
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,
(dollars in millions)	2013	2013	2012	2012	2012
Financial Condition Data:
General:
Total assets	$ 31,345	$ 30,598	$ 30,324	$ 28,576	$ 28,137
Loans	22,866	22,161	21,737	21,040	20,588
Securities	4,618	4,716	4,669	3,787	3,702
Short-term investments	120	127	131	64	73
Allowance for loan losses	186	187	188	186	180
Goodwill and other acquisition-related intangible assets	2,140	2,147	2,154	2,160	2,166
Deposits	21,982	21,792	21,751	21,363	21,458
Borrowings	3,626	2,849	2,386	1,524	960
Notes and debentures	639	659	659	160	160
Stockholders' equity	4,678	4,886	5,039	5,107	5,135
Total risk-weighted assets (1)	23,498	22,918	22,764	21,682	21,841
Non-performing assets (2)	281	285	290	294	295
Net loan charge-offs	10.8	13.1	10.0	9.4	13.5

Average Balances:
Loans	$ 22,369	$ 21,727	$ 21,211	$ 20,758	$ 20,514
Securities	4,557	4,548	3,867	3,608	2,964
Short-term investments	153	146	128	108	562
Total earning assets	27,079	26,421	25,206	24,474	24,040
Total assets	30,799	30,178	28,991	28,234	27,753
Deposits	21,835	21,558	21,557	21,372	21,190
Total funding liabilities	25,548	24,726	23,487	22,709	22,184
Stockholders' equity	4,825	5,005	5,107	5,161	5,188

Ratios:
Net loan charge-offs to average loans (annualized)	0.19%	0.24%	0.19%	0.18%	0.26%
Non-performing assets to originated loans,
real estate owned and repossessed assets (2)	1.33	1.42	1.48	1.59	1.67
Originated allowance for loan losses to:
Originated loans (2)	0.85	0.88	0.91	0.95	1.00
Originated non-performing loans (2)	71.8	70.6	70.3	66.0	65.6
Average stockholders' equity to average total assets	15.7	16.6	17.6	18.3	18.7
Stockholders' equity to total assets	14.9	16.0	16.6	17.9	18.3
Tangible stockholders' equity to tangible assets (3)	8.7	9.6	10.2	11.2	11.4
Total risk-based capital (1)	12.8	13.7	14.7	15.6	15.6

(1) Consolidated.
(2) Excludes acquired loans.
(3) See Non-GAAP financial measures and reconciliation to GAAP.

People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION

	June 30,	March 31,	Dec. 31,	June 30,
(in millions)	2013	2013	2012	2012
Assets
Cash and due from banks	$ 379.6	$ 320.5	$ 470.0	$ 415.1
Short-term investments	119.5	127.2	131.4	72.8
Total cash and cash equivalents	499.1	447.7	601.4	487.9
Securities:
Trading account securities, at fair value	6.4	6.4	6.5	12.0
Securities available for sale, at fair value	4,439.9	4,570.4	4,532.3	3,560.0
Securities held to maturity, at amortized cost	56.1	56.1	56.2	56.4
Federal Home Loan Bank stock, at cost	115.4	83.0	73.7	73.7
Total securities	4,617.8	4,715.9	4,668.7	3,702.1
Loans held for sale	68.3	50.7	77.0	57.1
Loans:
Commercial	8,560.8	8,469.5	8,400.0	7,590.1
Commercial real estate	8,077.3	7,599.2	7,294.2	6,999.7
Residential mortgage	4,084.2	3,958.8	3,886.1	3,831.9
Consumer	2,143.9	2,133.4	2,156.3	2,166.7
Total loans	22,866.2	22,160.9	21,736.6	20,588.4
Less allowance for loan losses	(185.7)	(187.3)	(188.0)	(180.3)
Total loans, net	22,680.5	21,973.6	21,548.6	20,408.1
Goodwill and other acquisition-related intangible assets	2,140.4	2,147.0	2,153.5	2,166.4
Premises and equipment	320.1	327.0	330.4	337.4
Bank-owned life insurance	337.2	336.3	336.5	334.6
Other assets	681.5	600.0	608.3	643.0
Total assets	$ 31,344.9	$ 30,598.2	$ 30,324.4	$ 28,136.6

Liabilities
Deposits:
Non-interest-bearing	$ 5,116.0	$ 4,994.3	$ 5,084.3	$ 4,799.2
Savings, interest-bearing checking and money market	12,278.6	12,210.8	11,959.8	11,617.9
Time	4,587.2	4,586.5	4,706.4	5,040.7
Total deposits	21,981.8	21,791.6	21,750.5	21,457.8
Borrowings:
Federal Home Loan Bank advances	2,206.4	1,407.4	1,178.3	330.3
Federal funds purchased	931.0	934.0	619.0	150.0
Retail repurchase agreements	487.7	506.9	588.2	452.7
Other borrowings	1.0	1.0	1.0	26.6
Total borrowings	3,626.1	2,849.3	2,386.5	959.6
Notes and debentures	638.9	659.3	659.0	160.1
Other liabilities	420.2	411.9	489.6	423.7
Total liabilities	26,667.0	25,712.1	25,285.6	23,001.2

Stockholders' Equity
Common stock	3.9	3.9	3.9	3.9
Additional paid-in capital	5,268.8	5,265.2	5,261.3	5,258.5
Retained earnings	763.1	753.6	756.2	743.2
Treasury stock, at cost	(1,009.3)	(856.4)	(712.2)	(602.9)
Accumulated other comprehensive loss	(178.8)	(108.5)	(96.9)	(90.2)
Unallocated common stock of Employee Stock Ownership Plan, at cost	(169.8)	(171.7)	(173.5)	(177.1)
Total stockholders' equity	4,677.9	4,886.1	5,038.8	5,135.4
Total liabilities and stockholders' equity	$ 31,344.9	$ 30,598.2	$ 30,324.4	$ 28,136.6

People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,
(in millions, except per share data)	2013	2013	2012	2012	2012
Interest and dividend income:
Commercial	$ 87.2	$ 86.7	$ 90.7	$ 91.3	$ 91.1
Commercial real estate	87.2	85.5	86.0	91.3	96.4
Residential mortgage	34.3	34.5	34.6	37.1	35.8
Consumer	18.7	18.8	19.5	19.8	20.0
Total interest on loans	227.4	225.5	230.8	239.5	243.3
Securities	22.2	22.7	20.7	20.3	18.3
Loans held for sale	0.4	0.4	0.4	0.5	0.4
Short-term investments	0.1	0.1	0.1	-	0.4
Total interest and dividend income	250.1	248.7	252.0	260.3	262.4
Interest expense:
Deposits	20.5	20.8	21.9	22.1	23.6
Borrowings	2.6	2.3	2.0	1.8	1.6
Notes and debentures	6.1	6.3	3.0	1.6	1.6
Total interest expense	29.2	29.4	26.9	25.5	26.8
Net interest income	220.9	219.3	225.1	234.8	235.6
Provision for loan losses	9.2	12.4	12.0	15.1	10.6
Net interest income after provision for loan losses	211.7	206.9	213.1	219.7	225.0
Non-interest income:
Bank service charges	32.1	30.1	31.4	33.0	32.5
Investment management fees	9.4	9.0	8.9	8.7	8.7
Insurance revenue	7.1	8.3	6.7	9.5	7.2
Brokerage commissions	3.4	3.3	2.9	2.8	3.4
Operating lease income	8.1	8.3	8.5	8.3	7.7
Net gains on sales of residential mortgage loans	4.2	5.7	6.1	3.6	2.8
Net gains on sales of acquired loans	5.8	-	0.3	-	0.7
Merchant services income, net	1.2	1.2	1.3	1.2	1.3
Bank-owned life insurance	1.0	0.9	1.1	1.3	1.2
Other non-interest income	13.8	16.1	17.1	13.0	10.2
Total non-interest income	86.1	82.9	84.3	81.4	75.7
Non-interest expense:
Compensation and benefits	104.4	108.2	97.4	106.7	104.5
Occupancy and equipment	36.9	37.9	37.9	36.5	34.1
Professional and outside service fees	14.9	13.9	16.8	15.8	17.5
Operating lease expense	7.6	7.5	7.5	6.8	6.4
Amortization of other acquisition-related intangible assets	6.6	6.5	6.7	6.7	6.8
Other non-interest expense	35.4	38.0	41.1	36.4	36.4
Total non-interest expense (1)	205.8	212.0	207.4	208.9	205.7
Income before income tax expense	92.0	77.8	90.0	92.2	95.0
Income tax expense	29.9	25.3	28.8	30.0	30.4
Net income	$ 62.1	$ 52.5	$ 61.2	$ 62.2	$ 64.6

Basic and diluted earnings per common share	$ 0.20	$ 0.16	$ 0.18	$ 0.18	$ 0.19

(1) Total non-interest expense includes $0.4 million, $8.0 million, $2.9 million, $3.2 million and $3.6 million of
non-operating expenses for the three months ended June 30, 2013, March 31, 2013, Dec. 31, 2012, Sept. 30, 2012
and June 30, 2012, respectively. See Non-GAAP financial measures and reconciliation to GAAP.

People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME

	Six Months Ended
	June 30,
(in millions, except per share data)	2013	2012
Interest and dividend income:
Commercial	$ 173.9	$ 183.9
Commercial real estate	172.7	188.1
Residential mortgage	68.8	72.0
Consumer	37.5	40.7
Total interest on loans	452.9	484.7
Securities	44.9	36.3
Loans held for sale	0.8	0.9
Short-term investments	0.2	0.7
Total interest and dividend income	498.8	522.6
Interest expense:
Deposits	41.3	46.7
Borrowings	4.9	3.3
Notes and debentures	12.4	3.8
Total interest expense	58.6	53.8
Net interest income	440.2	468.8
Provision for loan losses	21.6	22.1
Net interest income after provision for loan losses	418.6	446.7
Non-interest income:
Bank service charges	62.2	62.8
Investment management fees	18.4	17.3
Insurance revenue	15.4	15.6
Brokerage commissions	6.7	6.5
Operating lease income	16.4	14.4
Net gains on sales of residential mortgage loans	9.9	6.4
Net gains on sales of acquired loans	5.8	0.7
Merchant services income, net	2.4	2.4
Bank-owned life insurance	1.9	3.0
Other non-interest income	29.9	19.0
Total non-interest income	169.0	148.1
Non-interest expense:
Compensation and benefits	212.6	214.8
Occupancy and equipment	74.8	67.5
Professional and outside service fees	28.8	32.8
Operating lease expense	15.1	12.0
Amortization of other acquisition-related intangible assets	13.1	13.4
Other non-interest expense	73.4	73.8
Total non-interest expense (1)	417.8	414.3
Income before income tax expense	169.8	180.5
Income tax expense	55.2	58.6
Net income	$ 114.6	$ 121.9

Basic and diluted earnings per common share	$ 0.36	$ 0.36

(1) Total non-interest expense includes $8.4 million and $6.6 million of non-operating expenses for
the six months ended June 30, 2013 and 2012, respectively. See Non-GAAP financial measures
and reconciliation to GAAP.

People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)

	June 30, 2013			March 31, 2013
Three months ended	Average		Yield/	Average		Yield/
(dollars in millions)	Balance	Interest	Rate	Balance	Interest	Rate
Assets:
Short-term investments	$ 152.4	$ 0.1	0.18%	$ 146.3	$ 0.1	0.21%
Securities (2)	4,556.9	24.3	2.13	4,548.2	24.5	2.15
Loans:
Commercial (3)	8,424.6	89.4	4.25	8,244.1	88.9	4.31
Commercial real estate	7,757.5	87.2	4.50	7,399.5	85.5	4.62
Residential mortgage	4,048.5	34.7	3.43	3,934.5	34.9	3.55
Consumer	2,138.6	18.7	3.49	2,148.1	18.8	3.50
Total loans	22,369.2	230.0	4.11	21,726.2	228.1	4.20
Total earning assets	27,078.5	$ 254.4	3.76%	26,420.7	$ 252.7	3.83%
Other assets	3,720.3			3,757.3
Total assets	$ 30,798.8			$ 30,178.0

Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing	$ 4,960.8	$ -	- %	$ 4,879.0	$ -	- %
Savings, interest-bearing checking
and money market	12,316.4	8.3	0.27	12,042.2	8.0	0.27
Time	4,558.2	12.2	1.07	4,637.2	12.8	1.10
Total deposits	21,835.4	20.5	0.38	21,558.4	20.8	0.39
Borrowings:
Federal Home Loan Bank advances	1,778.3	2.0	0.44	1,344.0	1.7	0.52
Federal funds purchased	788.0	0.4	0.19	603.3	0.3	0.20
Retail repurchase agreements	492.3	0.2	0.19	559.6	0.3	0.20
Other borrowings	1.0	-	1.75	1.1	-	1.60
Total borrowings	3,059.6	2.6	0.34	2,508.0	2.3	0.37
Notes and debentures	653.1	6.1	3.75	659.1	6.3	3.81
Total funding liabilities	25,548.1	$ 29.2	0.46%	24,725.5	$ 29.4	0.48%
Other liabilities	425.8			448.0
Total liabilities	25,973.9			25,173.5
Stockholders' equity	4,824.9			5,004.5
Total liabilities and
stockholders' equity	$ 30,798.8			$ 30,178.0

Net interest income/spread (4)		$ 225.2	3.30%		$ 223.3	3.35%

Net interest margin			3.33%			3.38%

Operating net interest margin (5)			3.33%			3.38%

(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) Includes commercial and industrial loans and equipment financing loans.
(4) The fully taxable equivalent adjustment was $4.3 million, $4.0 million and $2.7 million for the three months ended
June 30, 2013, March 31, 2013 and June 30, 2012, respectively.
(5) See Non-GAAP financial measures and reconciliation to GAAP.

People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)

	June 30, 2012
Three months ended	Average		Yield/
(dollars in millions)	Balance	Interest	Rate
Assets:
Short-term investments	$ 561.6	$ 0.4	0.25%
Securities (2)	2,964.4	19.1	2.58
Loans:
Commercial (3)	7,493.5	93.0	4.97
Commercial real estate	7,011.9	96.4	5.50
Residential mortgage	3,832.5	36.2	3.78
Consumer	2,176.0	20.0	3.68
Total loans	20,513.9	245.6	4.79
Total earning assets	24,039.9	$ 265.1	4.41%
Other assets	3,713.2
Total assets	$ 27,753.1

Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing	$ 4,596.5	$ -	- %
Savings, interest-bearing checking
and money market	11,511.4	10.1	0.35
Time	5,081.8	13.5	1.06
Total deposits	21,189.7	23.6	0.45
Borrowings:
Federal Home Loan Bank advances	330.8	1.2	1.48
Federal funds purchased	10.5	-	0.21
Retail repurchase agreements	465.9	0.3	0.27
Other borrowings	26.8	0.1	0.98
Total borrowings	834.0	1.6	0.77
Notes and debentures	160.0	1.6	4.05
Total funding liabilities	22,183.7	$ 26.8	0.48%
Other liabilities	381.4
Total liabilities	22,565.1
Stockholders' equity	5,188.0
Total liabilities and
stockholders' equity	$ 27,753.1

Net interest income/spread (4)		$ 238.3	3.93%

Net interest margin			3.96%

Operating net interest margin (5)			3.88%

(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) Includes commercial and industrial loans and equipment financing loans.
(4) The fully taxable equivalent adjustment was $4.3 million, $4.0 million and $2.7 million for the three months ended
June 30, 2013, March 31, 2013 and June 30, 2012, respectively.
(5) See Non-GAAP financial measures and reconciliation to GAAP.

People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)

	June 30, 2013			June 30, 2012
Six months ended	Average		Yield/	Average		Yield/
(dollars in millions)	Balance	Interest	Rate	Balance	Interest	Rate
Assets:
Short-term investments	$ 149.4	$ 0.2	0.19%	$ 548.3	$ 0.7	0.25%
Securities (2)	4,552.5	48.8	2.14	2,857.5	37.8	2.65
Loans:
Commercial (3)	8,334.8	178.3	4.28	7,433.5	187.6	5.05
Commercial real estate	7,579.5	172.7	4.56	7,065.3	188.1	5.32
Residential mortgage	3,991.8	69.6	3.49	3,792.4	72.9	3.84
Consumer	2,143.3	37.5	3.50	2,188.7	40.7	3.72
Total loans	22,049.4	458.1	4.16	20,479.9	489.3	4.78
Total earning assets	26,751.3	$ 507.1	3.79%	23,885.7	$ 527.8	4.42%
Other assets	3,738.8			3,722.1
Total assets	$ 30,490.1			$ 27,607.8

Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing	$ 4,920.1	$ -	- %	$ 4,501.6	$ -	- %
Savings, interest-bearing checking and money market	12,180.0	16.3	0.27	11,349.0	21.1	0.37
Time	4,597.5	25.0	1.09	5,165.9	25.6	0.99
Total deposits	21,697.6	41.3	0.38	21,016.5	46.7	0.45
Borrowings:
Federal Home Loan Bank advances	1,562.3	3.7	0.48	331.4	2.4	1.48
Federal funds purchased	696.2	0.7	0.19	7.9	-	0.19
Retail repurchase agreements	525.8	0.5	0.20	480.3	0.7	0.28
Other borrowings	1.0	-	1.67	26.9	0.2	0.98
Total borrowings	2,785.3	4.9	0.35	846.5	3.3	0.77
Notes and debentures	656.1	12.4	3.78	159.9	3.8	4.76
Total funding liabilities	25,139.0	$ 58.6	0.47%	22,022.9	$ 53.8	0.49%
Other liabilities	436.9			382.4
Total liabilities	25,575.9			22,405.3
Stockholders' equity	4,914.2			5,202.5
Total liabilities and stockholders' equity	$ 30,490.1			$ 27,607.8

Net interest income/spread (4)		$ 448.5	3.32%		$ 474.0	3.93%

Net interest margin			3.35%			3.97%

Operating net interest margin (5)			3.35%			3.93%

(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) Includes commercial and industrial loans and equipment financing loans.
(4) The fully taxable equivalent adjustment was $8.3 million and $5.2 million for the six months ended June 30, 2013 and
2012, respectively.
(5) See Non-GAAP financial measures and reconciliation to GAAP.

People's United Financial, Inc.

Loans acquired in connection with business combinations are initially recorded at fair value, determined based
upon an 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.

NON-PERFORMING ASSETS

	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,
(dollars in millions)	2013	2013	2012	2012	2012
Originated non-performing loans:
Commercial Banking:
Commercial real estate	$ 70.2	$ 86.5	$ 84.4	$ 88.5	$ 90.5
Commercial and industrial	68.6	50.9	54.8	64.6	62.2
Equipment financing	27.8	24.8	27.2	37.4	37.3
Total	166.6	162.2	166.4	190.5	190.0
Retail:
Residential mortgage	59.6	66.8	65.0	60.6	63.7
Home equity	21.0	22.2	21.0	14.6	13.7
Other consumer	0.1	0.2	0.3	0.3	0.2
Total	80.7	89.2	86.3	75.5	77.6
Total originated non-performing loans (1)	247.3	251.4	252.7	266.0	267.6
REO:
Residential	16.0	16.9	17.2	7.2	5.6
Commercial	10.9	9.6	11.4	12.6	14.1
Total REO	26.9	26.5	28.6	19.8	19.7
Repossessed assets	6.3	7.2	8.3	8.2	7.2
Total non-performing assets	$ 280.5	$ 285.1	$ 289.6	$ 294.0	$ 294.5

Acquired non-performing loans (contractual amount) (2)	$ 159.0	$ 180.7	$ 181.6	$ 202.0	$ 236.6

Originated non-performing loans as a percentage
of originated loans	1.18%	1.25%	1.30%	1.45%	1.52%
Non-performing assets as a percentage of:
Originated loans, REO and repossessed assets	1.33	1.42	1.48	1.59	1.67
Tangible stockholders' equity and originated
allowance for loan losses	10.33	9.78	9.45	9.41	9.37

(1) Reported net of government guarantees totaling $20.4 million at June 30, 2013, $9.9 million at March 31, 2013,
$9.7 million at Dec. 31, 2012, $14.1 million at Sept. 30, 2012 and $14.8 million at June 30, 2012.
(2) Represents acquired loans that meet People's United Financial's definition of a non-performing loan but are not,
under the accounting model for acquired loans, subject to classification as non-accrual in the same manner as
originated loans. 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
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,
(dollars in millions)	2013	2013	2012	2012	2012
Allowance for loan losses on originated loans:
Balance at beginning of period	$ 177.5	$ 177.5	$ 175.5	$ 175.5	$ 175.5
Charge-offs	(12.0)	(11.3)	(11.6)	(11.1)	(12.3)
Recoveries	1.9	1.5	1.6	1.7	1.5
Net loan charge-offs	(10.1)	(9.8)	(10.0)	(9.4)	(10.8)
Provision for loan losses	10.1	9.8	12.0	9.4	10.8
Balance at end of period	177.5	177.5	177.5	175.5	175.5

Allowance for loan losses on acquired loans:
Balance at beginning of period	9.8	10.5	10.5	4.8	7.7
Charge-offs	(0.7)	(3.3)	-	-	(2.7)
Provision for loan losses	(0.9)	2.6	-	5.7	(0.2)
Balance at end of period	8.2	9.8	10.5	10.5	4.8
Total allowance for loan losses	$ 185.7	$ 187.3	$ 188.0	$ 186.0	$ 180.3

Originated allowance for loan losses as a percentage of:
Originated loans	0.85%	0.88%	0.91%	0.95%	1.00%
Originated non-performing loans	71.8	70.6	70.3	66.0	65.6
Commercial banking originated allowance
for loan losses as a percentage of
originated commercial banking loans	1.05	1.11	1.13	1.22	1.29
Retail originated allowance for loan losses
as a percentage of originated retail loans	0.31	0.32	0.36	0.35	0.37

NET LOAN CHARGE-OFFS (RECOVERIES)

	Three Months Ended
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,
(dollars in millions)	2013	2013	2012	2012	2012
Commercial Banking:
Commercial real estate	$ 4.7	$ 6.1	$ 2.5	$ 3.5	$ 6.1
Commercial and industrial	1.5	3.7	2.7	2.6	3.1
Equipment financing	0.7	(0.4)	1.0	1.1	1.2
Total	6.9	9.4	6.2	7.2	10.4
Retail:
Residential mortgage	2.3	1.9	1.7	1.3	1.4
Home equity	1.4	1.5	1.7	0.6	1.4
Other consumer	0.2	0.3	0.4	0.3	0.3
Total	3.9	3.7	3.8	2.2	3.1
Total	$ 10.8	$ 13.1	$ 10.0	$ 9.4	$ 13.5

Net loan charge-offs to average loans (annualized)	0.19%	0.24%	0.19%	0.18%	0.26%

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 their 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 intangible assets, losses on real estate assets and non-recurring
expenses) (the numerator) to (ii) net interest income on a fully taxable equivalent ("FTE") basis plus total
non-interest income (including the FTE adjustment on bank-owned life insurance ("BOLI") income, 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 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: (i) merger-related expenses, including acquisition integration and other costs;
(ii) charges related to executive-level management separation costs; (iii) severance-related costs; and
(iv) writedowns of banking house assets, are generally also excluded when calculating the efficiency ratio.
Operating earnings per share is derived by determining the per share impact of the respective adjustments to
arrive at operating earnings and adding (subtracting) such amounts to (from) GAAP earnings per share. 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 a discrete 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. Excluded from operating net interest
margin is cost recovery income on acquired loans. 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 intangible assets) (the numerator) to (ii) tangible assets (total assets less goodwill and
other acquisition-related intangible assets) (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 Employee Stock Ownership Plan ("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

OPERATING NON-INTEREST EXPENSE AND EFFICIENCY RATIO

	Three Months Ended					Six Months Ended
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	June 30,	June 30,
(dollars in millions)	2013	2013	2012	2012	2012	2013	2012
Total non-interest expense	$ 205.8	$ 212.0	$ 207.4	$ 208.9	$ 205.7	$ 417.8	$ 414.3
Adjustments to arrive at operating
non-interest expense:
Writedowns of banking house assets	-	(6.2)	-	-	-	(6.2)	-
Severance-related costs	(0.4)	(1.5)	(2.9)	(0.9)	(1.1)	(1.9)	(3.5)
Acquisition integration and other costs	-	(0.3)	-	(2.3)	(2.5)	(0.3)	(3.1)
Total	(0.4)	(8.0)	(2.9)	(3.2)	(3.6)	(8.4)	(6.6)
Operating non-interest expense	205.4	204.0	204.5	205.7	202.1	409.4	407.7

Amortization of other acquisition-related
intangible assets	(6.6)	(6.5)	(6.7)	(6.7)	(6.8)	(13.1)	(13.4)
Other (1)	(3.4)	(1.5)	(0.6)	(2.7)	(2.1)	(4.9)	(4.5)
Total	$ 195.4	$ 196.0	$ 197.2	$ 196.3	$ 193.2	$ 391.4	$ 389.8

Net interest income (FTE basis)	$ 225.2	$ 223.3	$ 228.6	$ 237.8	$ 238.3	$ 448.5	$ 474.0
Total non-interest income	86.1	82.9	84.3	81.4	75.7	169.0	148.1
Total revenues	311.3	306.2	312.9	319.2	314.0	617.5	622.1
Adjustments:
BOLI FTE adjustment	0.4	0.4	0.6	0.7	0.6	0.8	1.5
Other (2)	(0.2)	(0.7)	(0.7)	-	-	(0.9)	-
Total	$ 311.5	$ 305.9	$ 312.8	$ 319.9	$ 314.6	$ 617.4	$ 623.6
Efficiency ratio	62.7%	64.1%	63.0%	61.4%	61.4%	63.4%	62.5%

(1) Items classified as "other" and deducted from non-interest expense for purposes of calculating the efficiency ratio include,
as applicable, certain franchise taxes, real estate owned expenses, contract termination costs and non-recurring expenses.
(2) Items classified as "other" and added to (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					Six Months Ended
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	June 30,	June 30,
(dollars in millions, except per share data)	2013	2013	2012	2012	2012	2013	2012
Net income, as reported	$ 62.1	$ 52.5	$ 61.2	$ 62.2	$ 64.6	$ 114.6	$ 121.9
Adjustments to arrive at operating earnings:
Writedowns of banking house assets	-	6.2	-	-	-	6.2	-
Severance-related costs	0.4	1.5	2.9	0.9	1.1	1.9	3.5
Acquisition integration and other costs	-	0.3	-	2.3	2.5	0.3	3.1
Total pre-tax adjustments	0.4	8.0	2.9	3.2	3.6	8.4	6.6
Tax effect	(0.1)	(2.6)	(0.9)	(1.0)	(1.2)	(2.7)	(2.2)
Total adjustments, net of tax	0.3	5.4	2.0	2.2	2.4	5.7	4.4
Operating earnings	$ 62.4	$ 57.9	$ 63.2	$ 64.4	$ 67.0	$ 120.3	$ 126.3

Earnings per share, as reported	$ 0.20	$ 0.16	$ 0.18	$ 0.18	$ 0.19	$ 0.36	$ 0.36
Adjustments to arrive at operating
earnings per share:
Writedowns of banking house assets	-	0.02	-	-	-	0.02	-
Severance-related costs	-	-	0.01	-	-	-	0.01
Acquisition integration and other costs	-	-	-	0.01	0.01	-	0.01
Total adjustments per share	-	0.02	0.01	0.01	0.01	0.02	0.02
Operating earnings per share	$ 0.20	$ 0.18	$ 0.19	$ 0.19	$ 0.20	$ 0.38	$ 0.38

Average total assets	$ 30,799	$ 30,178	$ 28,991	$ 28,234	$ 27,753	$ 30,490	$ 27,608

Operating return on
average assets (annualized)	0.81%	0.77%	0.87%	0.91%	0.97%	0.79%	0.91%

OPERATING NET INTEREST MARGIN
	Three Months Ended					Six Months Ended
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	June 30,	June 30,
(dollars in millions)	2013	2013	2012	2012	2012	2013	2012
Net interest income (FTE basis)	$ 225.2	$ 223.3	$ 228.6	$ 237.8	$ 238.3	$ 448.5	$ 474.0
Adjustments to arrive at operating
net interest income:
Cost recovery income	-	-	-	(4.1)	(4.7)	-	(4.7)
Total adjustments	-	-	-	(4.1)	(4.7)	-	(4.7)
Operating net interest income	$ 225.2	$ 223.3	$ 228.6	$ 233.7	$ 233.6	$ 448.5	$ 469.3

Net interest margin, as reported (1)	3.33%	3.38%	3.63%	3.89%	3.96%	3.35%	3.97%
Adjustments to arrive at operating
net interest margin (1):
Cost recovery income	-	-	-	(0.07)	(0.08)	-	(0.04)
Total adjustments	-	-	-	(0.07)	(0.08)	-	(0.04)
Operating net interest margin (1)	3.33%	3.38%	3.63%	3.82%	3.88%	3.35%	3.93%

Average total earning assets	$ 27,079	$ 26,421	$ 25,206	$ 24,474	$ 24,040	$ 26,751	$ 23,886
(1) 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					Six Months Ended
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	June 30,	June 30,
(dollars in millions)	2013	2013	2012	2012	2012	2013	2012
Operating earnings	$ 62.4	$ 57.9	$ 63.2	$ 64.4	$ 67.0	$ 120.3	$ 126.3

Average stockholders' equity	$ 4,825	$ 5,005	$ 5,107	$ 5,161	$ 5,188	$ 4,914	$ 5,203
Less: Average goodwill and average other
acquisition-related intangible assets	2,144	2,151	2,157	2,164	2,166	2,147	2,169
Average tangible stockholders' equity	$ 2,681	$ 2,854	$ 2,950	$ 2,997	$ 3,022	$ 2,767	$ 3,034

Operating return on average tangible
stockholders' equity (annualized)	9.3%	8.1%	8.6%	8.6%	8.9%	8.7%	8.3%

OPERATING DIVIDEND PAYOUT RATIO
	Three Months Ended					Six Months Ended
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	June 30,	June 30,
(dollars in millions)	2013	2013	2012	2012	2012	2013	2012
Dividends paid	$ 51.9	$ 52.8	$ 53.6	$ 54.3	$ 55.1	$ 104.7	$ 110.0

Operating earnings	$ 62.4	$ 57.9	$ 63.2	$ 64.4	$ 67.0	$ 120.3	$ 126.3

Operating dividend payout ratio	83.2%	91.2%	84.8%	84.3%	82.2%	87.0%	87.1%

TANGIBLE EQUITY RATIO
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,
(dollars in millions)	2013	2013	2012	2012	2012
Total stockholders' equity	$ 4,678	$ 4,886	$ 5,039	$ 5,107	$ 5,135
Less: Goodwill and other
acquisition-related intangible assets	2,140	2,147	2,154	2,160	2,166
Tangible stockholders' equity	$ 2,538	$ 2,739	$ 2,885	$ 2,947	$ 2,969

Total assets	$31,345	$30,598	$30,324	$28,576	$28,137
Less: Goodwill and other
acquisition-related intangible assets	2,140	2,147	2,154	2,160	2,166
Tangible assets	$29,205	$28,451	$28,170	$26,416	$25,971

Tangible equity ratio	8.7%	9.6%	10.2%	11.2%	11.4%

TANGIBLE BOOK VALUE PER SHARE
	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,
(in millions, except per share data)	2013	2013	2012	2012	2012
Tangible stockholders' equity	$ 2,538	$ 2,739	$ 2,885	$ 2,947	$ 2,969

Common shares issued	396.32	396.24	395.81	395.88	395.87
Less: Shares classified as treasury shares	78.54	67.31	56.18	51.48	47.00
Unallocated ESOP shares	8.19	8.28	8.36	8.45	8.54
Common shares	309.59	320.65	331.27	335.95	340.33

Tangible book value per share	$ 8.20	$ 8.54	$ 8.71	$ 8.77	$ 8.72