BRIDGEPORT, Conn., April 16, 2014 /PRNewswire/ -- People's
United Financial, Inc. (NASDAQ: PBCT) today reported net income of
$53.1 million, or $0.18 per share, for the first quarter of 2014,
compared to $52.5 million, or
$0.16 per share, for the first
quarter of 2013, and $59.3 million,
or $0.20 per share, for the fourth
quarter of 2013. Operating earnings were $56.5 million, or $0.19 per share, for the first quarter of 2014,
compared to $57.9 million, or
$0.18 per share, for the first
quarter of 2013, and $60.0 million,
or $0.20 per share, for the fourth
quarter of 2013.
The Board of Directors of People's United Financial voted to
increase the common stock dividend to an annual rate of
$0.66 per share. Based on the closing
stock price on April 16, 2014, the
dividend yield on People's United Financial common stock is 4.4
percent. The quarterly dividend of $0.165 per share is payable May 15, 2014 to shareholders of record on
May 1, 2014.
"Our performance this quarter reflects the ongoing benefits from
strategic investments in our businesses, products and services,"
said Jack Barnes, President and
Chief Executive Officer. "In particular, our recent additions
in commercial banking in Boston
and wealth management in Connecticut reflect our commitment to
strengthen our products and talent."
Barnes continued, "In what is typically a seasonally slower
quarter for several of our businesses, I am pleased with annualized
loan growth of four percent and organic deposit growth of 10
percent. At the same time we continue to maintain superior asset
quality metrics. The increase in net interest income over the
past several quarters primarily reflects growth in the loan
portfolio despite a challenging interest rate environment and less
interest income on acquired loans."
Barnes concluded, "We are pleased to announce our
22nd consecutive annual dividend increase. 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."
"The net interest margin reflects the impact of continued strong
loan originations, two fewer days in the quarter and higher average
balances in the investment portfolio," stated Kirk W. Walters, Senior Executive Vice President
and Chief Financial Officer. "Our ability to control
operating expenses, considering the number of strategic investments
we made and the increasing cost of regulatory compliance, remains
an important area of focus."
Walters concluded, "We certainly are pleased with the sustained
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 note, both
the loan charge-off and non-performing loans to originated loans
ratios this quarter were the lowest each has been in six
years."
Net loan charge-offs as a percentage of average total loans on
an annualized basis were 0.12 percent in the first quarter of 2014
compared to 0.18 percent in the fourth quarter of 2013 and 0.24
percent in the first quarter of 2013. For the originated loan
portfolio, non-performing loans equaled 0.84 percent of loans at
March 31, 2014, compared to 0.95
percent at December 31, 2013 and 1.25
percent at March 31, 2013.
Operating return on average assets was 0.69 percent for the
first quarter of 2014, compared to 0.75 percent for the fourth
quarter of 2013 and 0.77 percent for the first quarter of
2013. Operating return on average tangible stockholders'
equity was 9.3 percent for the first quarter of 2014, compared to
9.8 percent for the fourth quarter of 2013 and 8.1 percent for the
first quarter of 2013.
At March 31, 2014, People's United
Financial's tier 1 common and total risk-based capital ratios were
10.1 percent and 11.2 percent, respectively, and the tangible
equity ratio stood at 8.0 percent. People's United Bank's tier 1
and total risk-based capital ratios were 11.0 percent and 12.2
percent, respectively, at March 31,
2014.
People's United Financial, a diversified financial services
company with $33 billion in assets,
provides commercial and retail banking, as well as wealth
management services through a network of 406 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 $15.9 billion at March 31, 2014 compared to $16.0 billion at December
31, 2013.
1Q 2014 Financial Highlights
Summary
- Net income was $53.1 million, or
$0.18 per share.
- Operating earnings were $56.5
million, or $0.19 per
share.
- Net interest income on a fully taxable equivalent basis
increased $2.3 million from 4Q13 and
totaled $231.8 million in 1Q14.
- Interest income on acquired loans decreased $3.1 million from 4Q13 to $23.3 million.
- Net interest margin decreased seven basis points from 4Q13 to
3.17%.
- The effects of two fewer calendar days and new loan volume at
lower rates both impacted the margin by five basis points.
- An increase in average investment balances benefited the margin
by three basis points.
- Provision for loan losses totaled $9.5
million.
- Net loan charge-offs totaled $7.0
million, of which $4.0 million
related to loans with previously-established specific
reserves.
- Reflects a $5.0 million increase
in the originated allowance for loan losses due to loan
growth.
- Includes a provision for loan losses on acquired loans of
$1.5 million.
- Non-interest income was $79.9
million in 1Q14 compared to $82.5
million in 4Q13.
- Operating lease income increased $1.9
million from 4Q13.
- Insurance revenue increased $1.0
million from 4Q13, primarily reflecting the seasonal nature
of insurance renewals.
- Bank service charges decreased $1.3
million from 4Q13, in part due to the seasonal nature of
certain transaction-related fee categories.
- Brokerage commissions decreased $0.5
million from 4Q13.
- Assets under administration and those under full discretionary
management, neither of which are reported as assets of People's
United Financial, totaled $10.8
billion and $5.1 billion,
respectively, at March 31, 2014.
- Non-interest expense totaled $216.7
million in 1Q14 compared to $208.7
million in 4Q13.
- Operating non-interest expense was $211.5 million in 1Q14 compared to $207.7 million in 4Q13.
- Compensation and benefits expense increased $2.8 million from 4Q13, primarily reflecting
higher payroll and benefit-related costs in 1Q14.
- Compared to 4Q13, operating lease expense increased
$2.7 million and occupancy and
equipment expense increased $1.5
million.
- The efficiency ratio in 1Q14 increased to 63.9% from 62.8% in
4Q13, primarily reflecting the decrease in adjusted total
revenues.
- Non-operating expenses totaled $5.2
million in 1Q14 compared to $1.0
million in 4Q13.
- The effective income tax rate was 34.3% for 1Q14 and 33.1% for
the full-year of 2013.
Commercial Banking
- Commercial banking loans increased $159
million, or 4% annualized, from December 31, 2013.
- Average commercial banking loans totaled $17.6 billion in 1Q14, an increase of
$524 million, or 12% annualized, from
4Q13.
- The ratio of originated non-performing commercial banking loans
to originated commercial banking loans was 0.73% at March 31, 2014 compared to 0.83% at December 31, 2013.
- Non-performing commercial banking assets, excluding acquired
non-performing loans, totaled $144.0
million at March 31, 2014
compared to $155.4 million at
December 31, 2013.
- Net loan charge-offs totaled $4.0
million, or 0.09% annualized, of average commercial banking
loans in 1Q14, compared to $6.6
million, or 0.15% annualized, in 4Q13.
- For the originated commercial banking portfolio, the allowance
for loan losses as a percentage of loans was 0.95% at both
March 31, 2014 and December 31, 2013.
- The commercial banking originated allowance for loan losses
represented 129% of originated non-performing commercial banking
loans at March 31, 2014, compared to
115% at December 31, 2013.
- Commercial deposits totaled $6.6
billion at March 31, 2014
compared to $6.4 billion at
December 31, 2013.
Retail Banking
- Residential mortgage loans increased $89
million, or 8% annualized, from December 31, 2013.
- Average residential mortgage loans totaled $4.5 billion in 1Q14, an increase of $122 million, or 11% annualized, from 4Q13.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 1.21% at
March 31, 2014 compared to 1.42% at
December 31, 2013.
- Net loan charge-offs totaled $1.0
million, or 0.08% annualized, of average residential
mortgage loans in 1Q14, compared to $1.5
million, or 0.14% annualized, in 4Q13.
- Home equity loans remained flat to December 31, 2013.
- Average home equity loans totaled $2.1
billion in 1Q14, an increase of $10
million, or 2% annualized, from 4Q13.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.94% at March 31, 2014 compared to 0.98% at December 31, 2013.
- Net loan charge-offs totaled $1.7
million, or 0.33% annualized, of average home equity loans
in 1Q14, compared to $2.0 million, or
0.38% annualized, in 4Q13.
- Retail deposits (excluding brokered deposits) totaled
$16.4 billion at March 31, 2014 compared to $16.1 billion at December
31, 2013.
Conference Call
On April 17,
2014, at 8 a.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.
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FINANCIAL
HIGHLIGHTS
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|
|
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|
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Three Months
Ended
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March 31,
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Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
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(dollars in millions,
except per share data)
|
2014
|
2013
|
2013
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2013
|
2013
|
Earnings
Data:
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
231.8
|
$
229.5
|
$
227.8
|
$
225.2
|
$
223.3
|
Net
interest income
|
227.1
|
224.9
|
223.5
|
220.9
|
219.3
|
Provision for
loan losses
|
9.5
|
10.0
|
12.1
|
9.2
|
12.4
|
Non-interest
income (1)
|
79.9
|
82.5
|
86.1
|
88.2
|
84.9
|
Non-interest
expense
|
216.7
|
208.7
|
212.5
|
205.8
|
212.0
|
Operating
non-interest expense (2)
|
211.5
|
207.7
|
209.2
|
205.4
|
204.0
|
Income before
income tax expense (1)
|
80.8
|
88.7
|
85.0
|
94.1
|
79.8
|
Net
income
|
53.1
|
59.3
|
58.5
|
62.1
|
52.5
|
Operating
earnings (2)
|
56.5
|
60.0
|
60.8
|
62.4
|
57.9
|
|
|
|
|
|
|
Selected Statistical
Data:
|
|
|
|
|
|
Net interest
margin (3)
|
3.17%
|
3.24%
|
3.30%
|
3.33%
|
3.38%
|
Return on
average assets (3)
|
0.65
|
0.75
|
0.75
|
0.81
|
0.70
|
Operating
return on average assets (2), (3)
|
0.69
|
0.75
|
0.78
|
0.81
|
0.77
|
Return on
average tangible assets (3)
|
0.69
|
0.80
|
0.80
|
0.87
|
0.75
|
Return on
average stockholders' equity (3)
|
4.7
|
5.2
|
5.1
|
5.2
|
4.2
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Return on
average tangible stockholders' equity (3)
|
8.7
|
9.7
|
9.4
|
9.3
|
7.4
|
Operating
return on average tangible
|
|
|
|
|
|
stockholders' equity (2), (3)
|
9.3
|
9.8
|
9.8
|
9.3
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8.1
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Efficiency
ratio (2)
|
63.9
|
62.8
|
62.2
|
61.4
|
62.7
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Common Share
Data:
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Basic and
diluted earnings per share
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$
0.18
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$
0.20
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$
0.19
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$
0.20
|
$
0.16
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Operating
earnings per share (2)
|
0.19
|
0.20
|
0.20
|
0.20
|
0.18
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Dividends paid
per share
|
0.1625
|
0.1625
|
0.1625
|
0.1625
|
0.16
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Dividend
payout ratio
|
91.5%
|
84.1%
|
86.0%
|
83.6%
|
100.6%
|
Operating
dividend payout ratio (2)
|
86.0
|
83.0
|
82.7
|
83.2
|
91.2
|
Book value per
share (end of period)
|
$
15.35
|
$
15.28
|
$
15.07
|
$
15.11
|
$
15.24
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Tangible book
value per share (end of period) (2)
|
8.26
|
8.17
|
8.14
|
8.20
|
8.54
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Stock
price:
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High
|
15.70
|
15.25
|
15.67
|
15.00
|
13.61
|
Low
|
13.73
|
14.09
|
14.07
|
12.62
|
12.22
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Close (end of period)
|
14.87
|
15.12
|
14.38
|
14.90
|
13.42
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Common shares
(end of period) (in millions)
|
299.49
|
298.90
|
307.72
|
309.59
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320.65
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Weighted
average diluted common shares (in millions)
|
297.72
|
302.17
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307.56
|
313.52
|
325.21
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(1)
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Previously reported
amounts for the three months ended Dec. 31, 2013, Sept. 30, 2013,
June 30, 2013 and March 31, 2013 have been restated to reflect
a change in accounting for investments in qualified affordable
housing projects, which allows for the amortization of such
investments to be excluded from pre-tax income and, instead,
included as a component of income tax expense.
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(2)
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See non-GAAP
financial measures and reconciliation to
GAAP.
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(3)
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Annualized.
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People's United
Financial, Inc.
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FINANCIAL HIGHLIGHTS
- Continued
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As of and for the
Three Months Ended
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March 31,
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Dec. 31,
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Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Financial Condition
Data:
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General:
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Total assets
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$
33,112
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$
33,214
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$
31,511
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$
31,345
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$
30,598
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Loans
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24,629
|
24,390
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23,227
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22,866
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22,161
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Securities
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4,690
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5,033
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4,379
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4,618
|
4,716
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Short-term investments
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73
|
124
|
148
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120
|
127
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Allowance for loan losses
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190
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188
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188
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186
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187
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Goodwill and other acquisition-related intangible assets
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2,121
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2,127
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2,134
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2,140
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2,147
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Deposits
|
23,666
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22,557
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22,190
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21,982
|
21,792
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Borrowings
|
3,887
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5,057
|
3,621
|
3,626
|
2,849
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Notes and debentures
|
639
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639
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639
|
639
|
659
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Stockholders' equity
|
4,596
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4,568
|
4,638
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4,678
|
4,886
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Total risk-weighted assets (1)
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25,742
|
25,357
|
23,731
|
23,498
|
22,918
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Non-performing assets (2)
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231
|
248
|
271
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281
|
285
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Net loan charge-offs
|
7.0
|
10.4
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9.6
|
10.8
|
13.1
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Average
Balances:
|
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Loans
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$
24,248
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$
23,598
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$
22,916
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$
22,369
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$
21,727
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Securities (3)
|
4,908
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4,550
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4,529
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4,557
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4,548
|
Short-term investments
|
121
|
146
|
179
|
153
|
146
|
Total earning assets
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29,277
|
28,294
|
27,624
|
27,079
|
26,421
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Total assets
|
32,799
|
31,822
|
31,216
|
30,799
|
30,178
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Deposits
|
22,863
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22,379
|
22,066
|
21,835
|
21,558
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Total funding liabilities
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27,850
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26,817
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26,168
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25,548
|
24,726
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Stockholders' equity
|
4,564
|
4,574
|
4,622
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4,825
|
5,005
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Ratios:
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Net loan charge-offs to average total loans (annualized)
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0.12%
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0.18%
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0.17%
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0.19%
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0.24%
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Non-performing assets to originated loans,
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|
|
real estate owned and
repossessed assets (2)
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1.00
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1.08
|
1.26
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1.33
|
1.42
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Originated allowance for loan losses to:
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|
Originated loans
(2)
|
0.78
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0.78
|
0.82
|
0.85
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0.88
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Originated
non-performing loans (2)
|
92.7
|
81.9
|
74.8
|
71.8
|
70.6
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Average stockholders' equity to average total assets
|
13.9
|
14.4
|
14.8
|
15.7
|
16.6
|
Stockholders' equity to total assets
|
13.9
|
13.8
|
14.7
|
14.9
|
16.0
|
Tangible stockholders' equity to tangible assets (4)
|
8.0
|
7.9
|
8.5
|
8.7
|
9.6
|
Total risk-based capital (1)
|
11.2
|
11.3
|
12.6
|
12.8
|
13.7
|
(1)
|
Consolidated.
|
(2)
|
Excludes acquired
loans.
|
(3)
|
Average balances for
securities are based on amortized cost.
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(4)
|
See non-GAAP
financial measures and reconciliation to GAAP.
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People's United
Financial, Inc.
|
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CONSOLIDATED
STATEMENTS OF CONDITION
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March 31,
|
Dec. 31,
|
March 31,
|
(in
millions)
|
2014
|
2013
|
2013
|
Assets
|
|
|
|
Cash and due from
banks
|
$
427.7
|
$
350.8
|
$
320.5
|
Short-term
investments
|
72.7
|
123.6
|
127.2
|
Total cash and cash equivalents
|
500.4
|
474.4
|
447.7
|
Securities:
|
|
|
|
Trading
account securities, at fair value
|
8.3
|
8.3
|
6.4
|
Securities
available for sale, at fair value
|
3,848.1
|
4,208.2
|
4,570.6
|
Securities
held to maturity, at amortized cost
|
658.1
|
640.5
|
56.1
|
Federal Home
Loan Bank stock, at cost
|
175.7
|
175.7
|
83.0
|
Total securities
|
4,690.2
|
5,032.7
|
4,716.1
|
Loans held for
sale
|
17.4
|
23.3
|
50.7
|
Loans:
|
|
|
|
Commercial
real estate
|
9,003.7
|
8,921.6
|
7,599.2
|
Commercial
|
8,971.6
|
8,895.2
|
8,469.5
|
Residential
mortgage
|
4,505.4
|
4,416.6
|
3,958.8
|
Consumer
|
2,148.5
|
2,156.9
|
2,133.4
|
Total loans
|
24,629.2
|
24,390.3
|
22,160.9
|
Less allowance
for loan losses
|
(190.3)
|
(187.8)
|
(187.3)
|
Total loans, net
|
24,438.9
|
24,202.5
|
21,973.6
|
Goodwill and other
acquisition-related intangible assets
|
2,121.1
|
2,127.3
|
2,147.0
|
Premises and
equipment
|
292.5
|
304.1
|
327.0
|
Bank-owned life
insurance
|
340.3
|
339.4
|
336.3
|
Other
assets
|
711.6
|
710.0
|
599.8
|
Total assets
|
$ 33,112.4
|
$ 33,213.7
|
$ 30,598.2
|
|
|
|
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
5,372.8
|
$
5,312.2
|
$
4,994.3
|
Savings,
interest-bearing checking and money market
|
13,858.1
|
12,862.2
|
12,210.8
|
Time
|
4,434.6
|
4,382.9
|
4,586.5
|
Total deposits
|
23,665.5
|
22,557.3
|
21,791.6
|
Borrowings:
|
|
|
|
Federal Home
Loan Bank advances
|
2,619.0
|
3,719.8
|
1,407.4
|
Federal funds
purchased
|
775.0
|
825.0
|
934.0
|
Retail
repurchase agreements
|
486.6
|
501.2
|
506.9
|
Other
borrowings
|
6.8
|
11.0
|
1.0
|
Total borrowings
|
3,887.4
|
5,057.0
|
2,849.3
|
Notes and
debentures
|
639.3
|
639.1
|
659.3
|
Other
liabilities
|
324.4
|
391.9
|
411.9
|
Total liabilities
|
28,516.6
|
28,645.3
|
25,712.1
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Common
stock
|
3.9
|
3.9
|
3.9
|
Additional paid-in
capital
|
5,276.4
|
5,277.0
|
5,265.2
|
Retained
earnings
|
778.2
|
779.0
|
753.6
|
Accumulated other
comprehensive loss
|
(137.5)
|
(155.1)
|
(108.5)
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(164.4)
|
(166.2)
|
(171.7)
|
Treasury stock, at
cost
|
(1,160.8)
|
(1,170.2)
|
(856.4)
|
Total stockholders' equity
|
4,595.8
|
4,568.4
|
4,886.1
|
Total liabilities and stockholders' equity
|
$ 33,112.4
|
$ 33,213.7
|
$ 30,598.2
|
People's United
Financial, Inc.
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(in millions, except
per share data)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Interest and dividend
income:
|
|
|
|
|
|
Commercial
real estate
|
$
88.7
|
$
88.5
|
$
90.0
|
$
87.2
|
$
85.5
|
Commercial
|
85.3
|
86.7
|
86.4
|
87.2
|
86.7
|
Residential
mortgage
|
37.8
|
36.4
|
34.7
|
34.3
|
34.5
|
Consumer
|
18.3
|
18.7
|
18.6
|
18.7
|
18.8
|
Total interest on loans
|
230.1
|
230.3
|
229.7
|
227.4
|
225.5
|
Securities
|
25.1
|
22.8
|
22.0
|
22.2
|
22.7
|
Loans held for
sale
|
0.1
|
0.2
|
0.5
|
0.4
|
0.4
|
Short-term
investments
|
0.1
|
0.1
|
-
|
0.1
|
0.1
|
Total interest and dividend income
|
255.4
|
253.4
|
252.2
|
250.1
|
248.7
|
Interest
expense:
|
|
|
|
|
|
Deposits
|
19.3
|
19.7
|
20.1
|
20.5
|
20.8
|
Borrowings
|
3.1
|
2.9
|
2.7
|
2.6
|
2.3
|
Notes and
debentures
|
5.9
|
5.9
|
5.9
|
6.1
|
6.3
|
Total interest expense
|
28.3
|
28.5
|
28.7
|
29.2
|
29.4
|
Net interest income
|
227.1
|
224.9
|
223.5
|
220.9
|
219.3
|
Provision for loan
losses
|
9.5
|
10.0
|
12.1
|
9.2
|
12.4
|
Net interest income after provision for loan losses
|
217.6
|
214.9
|
211.4
|
211.7
|
206.9
|
Non-interest
income:
|
|
|
|
|
|
Bank service
charges
|
30.5
|
31.8
|
33.3
|
32.1
|
30.1
|
Operating
lease income
|
11.3
|
9.4
|
8.7
|
8.1
|
8.3
|
Investment
management fees
|
9.8
|
9.6
|
9.2
|
9.4
|
9.0
|
Insurance
revenue
|
7.7
|
6.7
|
9.1
|
7.1
|
8.3
|
Brokerage
commissions
|
3.2
|
3.7
|
3.3
|
3.4
|
3.3
|
Bank-owned
life insurance
|
1.3
|
1.5
|
1.2
|
0.9
|
0.9
|
Merchant
services income, net
|
1.1
|
1.2
|
1.4
|
1.2
|
1.2
|
Net gains on
sales of residential mortgage loans
|
0.8
|
1.0
|
3.9
|
4.2
|
5.7
|
Net security
gains
|
0.1
|
-
|
-
|
-
|
-
|
Net (losses)
gains on sales of acquired loans
|
-
|
(0.1)
|
-
|
5.8
|
-
|
Other
non-interest income
|
14.1
|
17.7
|
16.0
|
16.0
|
18.1
|
Total non-interest income (1)
|
79.9
|
82.5
|
86.1
|
88.2
|
84.9
|
Non-interest
expense:
|
|
|
|
|
|
Compensation
and benefits
|
110.4
|
107.6
|
106.9
|
104.4
|
108.2
|
Occupancy and
equipment
|
38.0
|
36.5
|
36.7
|
36.9
|
37.9
|
Professional
and outside service fees
|
15.3
|
15.7
|
16.1
|
14.9
|
13.9
|
Operating
lease expense
|
11.1
|
8.4
|
7.8
|
7.6
|
7.5
|
Amortization
of other acquisition-related intangible assets
|
6.2
|
6.6
|
6.5
|
6.6
|
6.5
|
Other
non-interest expense
|
35.7
|
33.9
|
38.5
|
35.4
|
38.0
|
Total non-interest expense (2)
|
216.7
|
208.7
|
212.5
|
205.8
|
212.0
|
Income before income tax expense (1)
|
80.8
|
88.7
|
85.0
|
94.1
|
79.8
|
Income tax expense
(1)
|
27.7
|
29.4
|
26.5
|
32.0
|
27.3
|
Net income
|
$
53.1
|
$
59.3
|
$
58.5
|
$
62.1
|
$
52.5
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
0.18
|
$
0.20
|
$
0.19
|
$
0.20
|
$
0.16
|
(1)
|
See Financial
Highlights footnote 1.
|
(2)
|
Total non-interest
expense includes $5.2 million, $1.0 million, $3.3 million, $0.4
million and $8.0 million of non-operating expenses for the three
months ended March 31, 2014, Dec. 31, 2013, Sept. 30, 2013, June
30, 2013 and March 31, 2013, respectively. See non-GAAP financial
measures and reconciliation to
GAAP.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2014
|
December 31,
2013
|
Three months
ended
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
Short-term
investments
|
$
120.9
|
$
0.1
|
0.19%
|
$
145.9
|
$
0.1
|
0.27%
|
Securities
(2)
|
4,907.9
|
27.3
|
2.23
|
4,549.9
|
24.9
|
2.19
|
Loans:
|
|
|
|
|
|
|
Commercial
(3)
|
8,702.7
|
87.8
|
4.04
|
8,543.3
|
89.2
|
4.17
|
Commercial
real estate
|
8,904.5
|
88.7
|
3.98
|
8,540.1
|
88.5
|
4.15
|
Residential
mortgage
|
4,482.4
|
37.9
|
3.38
|
4,360.3
|
36.6
|
3.35
|
Consumer
|
2,158.7
|
18.3
|
3.40
|
2,154.0
|
18.7
|
3.48
|
Total loans
|
24,248.3
|
232.7
|
3.84
|
23,597.7
|
233.0
|
3.95
|
Total earning assets
|
29,277.1
|
$260.1
|
3.55%
|
28,293.5
|
$258.0
|
3.65%
|
Other
assets
|
3,521.7
|
|
|
3,528.9
|
|
|
Total assets
|
$ 32,798.8
|
|
|
$ 31,822.4
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest-bearing
|
$
5,187.5
|
$
-
|
- %
|
$
5,160.7
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
and money market
|
13,278.3
|
8.6
|
0.26
|
12,819.2
|
8.5
|
0.27
|
Time
|
4,397.6
|
10.7
|
0.98
|
4,399.1
|
11.2
|
1.02
|
Total deposits
|
22,863.4
|
19.3
|
0.34
|
22,379.0
|
19.7
|
0.35
|
Borrowings:
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
3,221.6
|
2.6
|
0.32
|
2,647.3
|
2.3
|
0.34
|
Federal funds
purchased
|
610.3
|
0.3
|
0.17
|
653.7
|
0.3
|
0.18
|
Retail
repurchase agreements
|
507.6
|
0.2
|
0.19
|
490.8
|
0.3
|
0.21
|
Other
borrowings
|
8.3
|
-
|
0.25
|
7.4
|
-
|
0.31
|
Total borrowings
|
4,347.8
|
3.1
|
0.28
|
3,799.2
|
2.9
|
0.30
|
Notes and
debentures
|
639.2
|
5.9
|
3.69
|
639.1
|
5.9
|
3.71
|
Total funding liabilities
|
27,850.4
|
$
28.3
|
0.41%
|
26,817.3
|
$
28.5
|
0.43%
|
Other
liabilities
|
384.3
|
|
|
431.2
|
|
|
Total liabilities
|
28,234.7
|
|
|
27,248.5
|
|
|
Stockholders'
equity
|
4,564.1
|
|
|
4,573.9
|
|
|
Total liabilities and
|
|
|
|
|
|
|
stockholders'
equity
|
$ 32,798.8
|
|
|
$ 31,822.4
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (4)
|
|
$231.8
|
3.14%
|
|
$229.5
|
3.22%
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.17%
|
|
|
3.24%
|
(1)
|
Average yields earned
and rates paid are
annualized.
|
(2)
|
Average balances and
yields for securities are based on amortized
cost.
|
(3)
|
Includes commercial
and industrial loans and equipment financing
loans.
|
(4)
|
The fully taxable
equivalent adjustment was $4.7 million, $4.6 million and $4.0
million for the three months ended March 31, 2014, December
31, 2013 and March 31, 2013,
respectively.
|
People's United
Financial, Inc.
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
March 31,
2013
|
Three months
ended
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
Short-term
investments
|
$
146.3
|
$
0.1
|
0.21%
|
Securities
(2)
|
4,548.2
|
24.5
|
2.15
|
Loans:
|
|
|
|
Commercial
(3)
|
8,244.1
|
88.9
|
4.31
|
Commercial
real estate
|
7,399.5
|
85.5
|
4.62
|
Residential
mortgage
|
3,934.5
|
34.9
|
3.55
|
Consumer
|
2,148.1
|
18.8
|
3.50
|
Total loans
|
21,726.2
|
228.1
|
4.20
|
Total earning assets
|
26,420.7
|
$252.7
|
3.83%
|
Other
assets
|
3,757.3
|
|
|
Total assets
|
$ 30,178.0
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
4,879.0
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
and money market
|
12,042.2
|
8.0
|
0.27
|
Time
|
4,637.2
|
12.8
|
1.10
|
Total deposits
|
21,558.4
|
20.8
|
0.39
|
Borrowings:
|
|
|
|
Federal Home
Loan Bank advances
|
1,344.0
|
1.7
|
0.52
|
Federal funds
purchased
|
603.3
|
0.3
|
0.20
|
Retail
repurchase agreements
|
559.6
|
0.3
|
0.20
|
Other
borrowings
|
1.1
|
-
|
1.60
|
Total borrowings
|
2,508.0
|
2.3
|
0.37
|
Notes and
debentures
|
659.1
|
6.3
|
3.81
|
Total funding liabilities
|
24,725.5
|
$
29.4
|
0.48%
|
Other
liabilities
|
448.0
|
|
|
Total liabilities
|
25,173.5
|
|
|
Stockholders'
equity
|
5,004.5
|
|
|
Total liabilities and
|
|
|
|
stockholders'
equity
|
$ 30,178.0
|
|
|
|
|
|
|
Net interest
income/spread (4)
|
|
$223.3
|
3.35%
|
|
|
|
|
Net interest
margin
|
|
|
3.38%
|
|
|
(1)
|
Average yields earned
and rates paid are
annualized.
|
(2)
|
Average balances and
yields for securities are based on amortized
cost.
|
(3)
|
Includes commercial
and industrial loans and equipment financing
loans.
|
(4)
|
The fully taxable
equivalent adjustment was $4.7 million, $4.6 million and $4.0
million for the three months ended March 31, 2014, December 31,
2013 and March 31, 2013,
respectively.
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Originated
non-performing loans:
|
|
|
|
|
|
Commercial
Banking:
|
|
|
|
|
|
Commercial
real estate
|
$
60.1
|
$
70.8
|
$
69.8
|
$
70.2
|
$
86.5
|
Commercial and
industrial
|
41.7
|
43.8
|
66.7
|
68.6
|
50.9
|
Equipment
financing
|
22.0
|
23.2
|
21.2
|
27.8
|
24.8
|
Total
|
123.8
|
137.8
|
157.7
|
166.6
|
162.2
|
Retail:
|
|
|
|
|
|
Residential
mortgage
|
51.3
|
58.9
|
59.5
|
59.6
|
66.8
|
Home
equity
|
19.0
|
19.8
|
19.9
|
21.0
|
22.2
|
Other
consumer
|
0.2
|
0.1
|
0.1
|
0.1
|
0.2
|
Total
|
70.5
|
78.8
|
79.5
|
80.7
|
89.2
|
Total originated non-performing loans (1)
|
194.3
|
216.6
|
237.2
|
247.3
|
251.4
|
REO:
|
|
|
|
|
|
Residential
|
17.0
|
13.6
|
14.6
|
16.0
|
16.9
|
Commercial
|
16.5
|
13.1
|
13.3
|
10.9
|
9.6
|
Total REO
|
33.5
|
26.7
|
27.9
|
26.9
|
26.5
|
Repossessed
assets
|
3.7
|
4.5
|
6.1
|
6.3
|
7.2
|
Total non-performing assets
|
$
231.5
|
$
247.8
|
$
271.2
|
$
280.5
|
$
285.1
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount) (2)
|
$
145.7
|
$
142.5
|
$
154.2
|
$
159.0
|
$
180.7
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
of originated
loans
|
0.84%
|
0.95%
|
1.10%
|
1.18%
|
1.25%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
1.00
|
1.08
|
1.26
|
1.33
|
1.42
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
allowance for loan
losses
|
8.72
|
9.47
|
10.12
|
10.33
|
9.78
|
|
|
(1)
|
Reported net of
government guarantees totaling $19.2 million at March 31, 2014,
$19.4 million at Dec. 31, 2013, $19.8 million at Sept. 30, 2013,
$20.4 million at June 30, 2013 and $9.9 million at March 31,
2013.
|
(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
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
Balance at
beginning of period
|
$
177.5
|
$
177.5
|
$
177.5
|
$
177.5
|
$
177.5
|
Charge-offs
|
(6.4)
|
(11.4)
|
(10.7)
|
(12.0)
|
(11.3)
|
Recoveries
|
0.9
|
1.3
|
1.2
|
1.9
|
1.5
|
Net loan charge-offs
|
(5.5)
|
(10.1)
|
(9.5)
|
(10.1)
|
(9.8)
|
Provision for
loan losses
|
8.0
|
10.1
|
9.5
|
10.1
|
9.8
|
Balance at end of period
|
180.0
|
177.5
|
177.5
|
177.5
|
177.5
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
Balance at
beginning of period
|
10.3
|
10.7
|
8.2
|
9.8
|
10.5
|
Charge-offs
|
(1.5)
|
(0.3)
|
(0.1)
|
(0.7)
|
(3.3)
|
Provision for
loan losses
|
1.5
|
(0.1)
|
2.6
|
(0.9)
|
2.6
|
Balance at end of period
|
10.3
|
10.3
|
10.7
|
8.2
|
9.8
|
Total allowance for loan losses
|
$
190.3
|
$
187.8
|
$
188.2
|
$
185.7
|
$
187.3
|
|
|
|
|
|
|
Commercial banking
originated allowance
|
|
|
|
|
|
for loan
losses as a percentage of
|
|
|
|
|
|
originated
commercial banking loans
|
0.95%
|
0.95%
|
1.02%
|
1.05%
|
1.11%
|
Retail originated
allowance for loan losses
|
|
|
|
|
|
as a
percentage of originated retail loans
|
0.32
|
0.30
|
0.31
|
0.31
|
0.32
|
Total originated
allowance for loan losses
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
Originated loans
|
0.78
|
0.78
|
0.82
|
0.85
|
0.88
|
Originated non-performing loans
|
92.7
|
81.9
|
74.8
|
71.8
|
70.6
|
|
|
|
|
|
|
NET LOAN CHARGE-OFFS
(RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Commercial
Banking:
|
|
|
|
|
|
Commercial
real estate
|
$
2.9
|
$
2.1
|
$
(0.1)
|
$
4.7
|
$
6.1
|
Commercial and
industrial
|
0.6
|
3.7
|
6.4
|
1.5
|
3.7
|
Equipment
financing
|
0.5
|
0.8
|
0.9
|
0.7
|
(0.4)
|
Total
|
4.0
|
6.6
|
7.2
|
6.9
|
9.4
|
Retail:
|
|
|
|
|
|
Residential
mortgage
|
1.0
|
1.5
|
0.4
|
2.3
|
1.9
|
Home
equity
|
1.7
|
2.0
|
1.6
|
1.4
|
1.5
|
Other
consumer
|
0.3
|
0.3
|
0.4
|
0.2
|
0.3
|
Total
|
3.0
|
3.8
|
2.4
|
3.9
|
3.7
|
Total
|
$
7.0
|
$
10.4
|
$
9.6
|
$
10.8
|
$
13.1
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
average total
loans (annualized)
|
0.12%
|
0.18%
|
0.17%
|
0.19%
|
0.24%
|
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). In addition,
operating lease expense is excluded from total non-interest expense
and netted against operating lease income within non-interest
income to conform with the reporting approach applied to our other
fee-based businesses that are already presented on a net basis.
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 total 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.
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
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Total non-interest
expense
|
$
216.7
|
$
208.7
|
$
212.5
|
$
205.8
|
$
212.0
|
Adjustments to arrive
at operating
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
Writedowns of
banking house assets
|
(4.4)
|
-
|
(2.8)
|
-
|
(6.2)
|
Severance-related costs
|
(0.8)
|
(0.4)
|
(0.5)
|
(0.4)
|
(1.5)
|
Acquisition
integration and other costs
|
-
|
(0.6)
|
-
|
-
|
(0.3)
|
Total
|
(5.2)
|
(1.0)
|
(3.3)
|
(0.4)
|
(8.0)
|
Operating non-interest expense
|
211.5
|
207.7
|
209.2
|
205.4
|
204.0
|
|
|
|
|
|
|
Operating
lease expense (1)
|
(11.1)
|
(8.4)
|
(7.8)
|
(7.6)
|
(7.5)
|
Amortization
of other acquisition-related
|
|
|
|
|
|
intangible assets
|
(6.2)
|
(6.6)
|
(6.5)
|
(6.6)
|
(6.5)
|
Other
(2)
|
(2.0)
|
(1.4)
|
(4.0)
|
(3.5)
|
(1.5)
|
Total
non-interest expense for efficiency ratio
|
$
192.2
|
$
191.3
|
$
190.9
|
$
187.7
|
$
188.5
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
$
231.8
|
$
229.5
|
$
227.8
|
$
225.2
|
$
223.3
|
Total non-interest
income
|
79.9
|
82.5
|
86.1
|
88.2
|
84.9
|
Total revenues
|
311.7
|
312.0
|
313.9
|
313.4
|
308.2
|
Adjustments:
|
|
|
|
|
|
Operating
lease expense (1)
|
(11.1)
|
(8.4)
|
(7.8)
|
(7.6)
|
(7.5)
|
BOLI FTE
adjustment
|
0.6
|
0.7
|
0.6
|
0.4
|
0.4
|
Net security
gains
|
(0.1)
|
-
|
-
|
-
|
-
|
Other
(3)
|
(0.1)
|
0.1
|
-
|
(0.3)
|
(0.7)
|
Total revenues for efficiency ratio
|
$
301.0
|
$
304.4
|
$
306.7
|
$
305.9
|
$
300.4
|
Efficiency ratio
|
63.9%
|
62.8%
|
62.2%
|
61.4%
|
62.7%
|
(1)
|
Operating lease
expense is excluded from total non-interest expense and netted
against operating lease income within non-interest income to
conform with the reporting approach applied to our other
fee-based businesses that are already presented on a net
basis.
|
(2)
|
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.
|
(3)
|
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
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in millions,
except per share data)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Net income, as
reported
|
$
53.1
|
$
59.3
|
$
58.5
|
$
62.1
|
$
52.5
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
Writedowns of
banking house assets
|
4.4
|
-
|
2.8
|
-
|
6.2
|
Severance-related costs
|
0.8
|
0.4
|
0.5
|
0.4
|
1.5
|
Acquisition
integration and other costs
|
-
|
0.6
|
-
|
-
|
0.3
|
Total pre-tax adjustments
|
5.2
|
1.0
|
3.3
|
0.4
|
8.0
|
Tax effect
|
(1.8)
|
(0.3)
|
(1.0)
|
(0.1)
|
(2.6)
|
Total adjustments, net of tax
|
3.4
|
0.7
|
2.3
|
0.3
|
5.4
|
Operating earnings
|
$
56.5
|
$
60.0
|
$
60.8
|
$
62.4
|
$
57.9
|
|
|
|
|
|
|
Earnings per share,
as reported
|
$
0.18
|
$
0.20
|
$
0.19
|
$
0.20
|
$
0.16
|
Adjustments to arrive
at operating
|
|
|
|
|
|
earnings per
share:
|
|
|
|
|
|
Writedowns of
banking house assets
|
0.01
|
-
|
0.01
|
-
|
0.02
|
Severance-related costs
|
-
|
-
|
-
|
-
|
-
|
Acquisition
integration and other costs
|
-
|
-
|
-
|
-
|
-
|
Total adjustments per share
|
0.01
|
-
|
0.01
|
-
|
0.02
|
Operating earnings per share
|
$
0.19
|
$
0.20
|
$
0.20
|
$
0.20
|
$
0.18
|
|
|
|
|
|
|
Average total
assets
|
$
32,799
|
$
31,822
|
$
31,216
|
$
30,799
|
$
30,178
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
average assets
(annualized)
|
0.69%
|
0.75%
|
0.78%
|
0.81%
|
0.77%
|
|
|
|
|
|
|
OPERATING RETURN ON
AVERAGE TANGIBLE STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Operating
earnings
|
$
56.5
|
$
60.0
|
$
60.8
|
$
62.4
|
$
57.9
|
|
|
|
|
|
|
Average stockholders'
equity
|
$
4,561
|
$
4,574
|
$
4,622
|
$
4,825
|
$
5,005
|
Less: Average
goodwill and average other
|
|
|
|
|
|
acquisition-related intangible assets
|
2,125
|
2,131
|
2,137
|
2,144
|
2,151
|
Average tangible
stockholders' equity
|
$
2,436
|
$
2,443
|
$
2,485
|
$
2,681
|
$
2,854
|
|
|
|
|
|
|
Operating return on
average tangible
|
|
|
|
|
|
stockholders'
equity (annualized)
|
9.3%
|
9.8%
|
9.8%
|
9.3%
|
8.1%
|
People's United
Financial, Inc.
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - continued
|
|
|
|
|
|
|
|
|
OPERATING DIVIDEND
PAYOUT RATIO
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Dividends
paid
|
$
48.6
|
$
49.8
|
$
50.3
|
$
51.9
|
$
52.8
|
|
|
|
|
|
|
Operating
earnings
|
$
56.5
|
$
60.0
|
$
60.8
|
$
62.4
|
$
57.9
|
|
|
|
|
|
|
Operating dividend
payout ratio
|
86.0%
|
83.0%
|
82.7%
|
83.2%
|
91.2%
|
|
|
|
|
|
|
TANGIBLE EQUITY
RATIO
|
|
|
|
|
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Total stockholders'
equity
|
$
4,596
|
$
4,568
|
$
4,638
|
$
4,678
|
$
4,886
|
Less: Goodwill and
other
|
|
|
|
|
|
acquisition-related intangible assets
|
2,121
|
2,127
|
2,134
|
2,140
|
2,147
|
Tangible
stockholders' equity
|
$
2,475
|
$
2,441
|
$
2,504
|
$
2,538
|
$
2,739
|
|
|
|
|
|
|
Total
assets
|
$
33,112
|
$
33,214
|
$
31,511
|
$
31,345
|
$
30,598
|
Less: Goodwill and
other
|
|
|
|
|
|
acquisition-related intangible assets
|
2,121
|
2,127
|
2,134
|
2,140
|
2,147
|
Tangible
assets
|
$
30,991
|
$
31,087
|
$
29,377
|
$
29,205
|
$
28,451
|
|
|
|
|
|
|
Tangible equity
ratio
|
8.0%
|
7.9%
|
8.5%
|
8.7%
|
9.6%
|
|
|
|
|
|
|
TANGIBLE BOOK VALUE
PER SHARE
|
|
|
|
|
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(in millions, except
per share data)
|
2014
|
2013
|
2013
|
2013
|
2013
|
Tangible
stockholders' equity
|
$
2,475
|
$
2,441
|
$
2,504
|
$
2,538
|
$
2,739
|
|
|
|
|
|
|
Common shares
issued
|
396.45
|
396.45
|
396.44
|
396.32
|
396.24
|
Less: Shares
classified as treasury shares
|
89.03
|
89.54
|
80.62
|
78.54
|
67.31
|
Unallocated ESOP shares
|
7.93
|
8.01
|
8.10
|
8.19
|
8.28
|
Common
shares
|
299.49
|
298.90
|
307.72
|
309.59
|
320.65
|
|
|
|
|
|
|
Tangible book value
per share
|
$
8.26
|
$
8.17
|
$
8.14
|
$
8.20
|
$
8.54
|
SOURCE People's United Financial, Inc.