BRIDGEPORT, Conn., April 16, 2015 /PRNewswire/ -- People's
United Financial, Inc. (NASDAQ: PBCT) today reported net income of
$59.2 million, or $0.20 per share, for the first quarter of 2015,
compared to $53.1 million, or
$0.18 per share, for the first
quarter of 2014, and $64.7 million,
or $0.22 per share, for the fourth
quarter of 2014. Operating earnings were $63.2 million, or $0.21 per share, for the first quarter of 2015,
compared to $56.5 million, or
$0.19 per share, for the first
quarter of 2014, and $65.1 million,
or $0.22 per share, for the fourth
quarter of 2014.
The Company's Board of Directors voted to increase the common
stock dividend to an annual rate of $0.67 per share. Based on the closing stock
price on April 15, 2015, the dividend
yield on People's United Financial common stock is 4.4
percent. The quarterly dividend of $0.1675 per share is payable May 15, 2015 to shareholders of record on
May 1, 2015.
"Our performance this quarter is an encouraging start to the
year, especially given the persistent low interest rate environment
as well as the severe winter weather across our markets," commented
Jack Barnes, President and Chief
Executive Officer. "We are pleased our continued focus on improving
profitability led to a 12 percent increase in operating earnings
from a year ago. While the first quarter is typically a seasonally
slower period, we achieved solid annualized loan growth of five
percent and the success of our deposit gathering initiatives drove
annualized organic deposit growth of over 17 percent."
Barnes continued, "Additionally, as previously reported we
received a national banking association charter during the quarter.
This charter is best aligned to our commercial banking business
model."
Barnes concluded, "Finally, we are pleased to announce our
22nd consecutive annual dividend increase which reflects
our continued commitment to delivering value for shareholders
through a consistent return of capital."
"The first quarter results reflect our continued focus on
improving operating leverage through revenue growth and effective
expense management," stated David
Rosato, Senior Executive Vice President and Chief Financial
Officer. "Revenues grew three percent from the prior year quarter
mostly due to higher non-interest income, while operating expenses
remained flat. The net interest margin decline from the
fourth quarter was in line with expectations and primarily resulted
from the impact of two fewer calendar days and continued strong
loan originations at rates lower than the existing portfolio."
Rosato concluded, "We are comfortable with our capital structure
and balance sheet strength. Asset quality was once again
exceptional as net charge-offs improved from an already low level.
Capital ratios continue to be strong, especially in light of the
Company's low risk business model."
At March 31, 2015, People's United
Financial's common equity tier 1 capital and total risk-based
capital ratios were 10.0 percent and 12.0 percent,
respectively, and the tangible equity ratio stood at 7.5 percent.
People's United Bank N.A.'s common equity tier 1 capital and
total risk-based capital ratios were 10.6 percent and 13.0
percent, respectively, at March 31,
2015.
Net loan charge-offs as a percentage of average total loans on
an annualized basis were 0.11 percent in the first quarter of 2015,
an improvement from 0.13 percent in the fourth quarter of 2014 and
0.12 percent in the first quarter of 2014. For the originated
loan portfolio, non-performing loans equaled 0.68 percent of loans
at March 31, 2015, compared to 0.77
percent at December 31, 2014 and 0.84
percent at March 31, 2014.
Operating return on average assets of 0.71 percent for the first
quarter of 2015 declined from 0.75 percent in the fourth quarter of
2014, but improved from 0.69 percent in the first quarter of
2014. Operating return on average tangible stockholders'
equity of 9.9 percent in the first quarter of 2015 declined from
10.1 percent in the fourth quarter of 2014, but improved from 9.3
percent in the first quarter of 2014.
People's United Financial, a diversified financial services
company with over $36 billion in
assets, provides commercial and retail banking, as well as wealth
management services through a network of over 400 branches in
Connecticut, New York, Massachusetts, Vermont, New
Hampshire and Maine. 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 $15.7 billion at March 31, 2015 compared to $16.4 billion at December
31, 2014.
1Q 2015 Financial Highlights
Summary
- Net income was $59.2 million, or
$0.20 per share.
- Operating earnings were $63.2
million, or $0.21 per
share.
- Net interest income totaled $228.1
million in both 1Q15 and 4Q14.
- Interest income on acquired loans decreased $1.7 million to $15.3
million.
- Net interest margin decreased nine basis points from 4Q14 to
2.91% reflecting:
- Two fewer calendar days in 1Q15 (decrease of five basis
points).
- New loan volume at rates lower than the existing portfolio
(decrease of two basis points).
- Increase in average investment and deposit balances (decrease
of two basis points).
- Provision for loan losses totaled $9.8
million.
- Net loan charge-offs totaled $7.2
million, of which $3.2 million
related to loans with previously-established specific
reserves.
- Net loan charge-off ratio of 0.11% in 1Q15.
- Reflects a $6.2 million increase
in the originated allowance for loan losses due to loan growth and
a $0.4 million allowance reversal
related to acquired loans.
- Non-interest income was $89.0
million in 1Q15 compared to $86.8
million in 4Q14.
- Commercial banking lending fees increased $3.7 million.
- Net gains on sales of acquired loans increased $2.2 million
- Customer interest rate swap income increased $2.1 million.
- Insurance revenue increased $1.0
million, primarily reflecting the seasonal nature of
insurance renewals.
- Bank service charges decreased $1.9
million.
- Net security gains decreased $2.7
million.
- Assets under administration and those under full discretionary
management, neither of which are reported as assets of People's
United Financial, totaled $10.0
billion and $5.7 billion,
respectively, at March 31, 2015,
compared to $10.8 billion and
$5.6 billion, respectively, at
December 31, 2014.
- Non-interest expense totaled $217.6
million in 1Q15 compared to $207.7
million in 4Q14.
- Operating non-interest expense was $211.6 million in 1Q15 compared to $207.1 million in 4Q14.
- Compensation and benefits increased $6.6
million, primarily reflecting seasonally-higher payroll and
benefit-related costs in 1Q15.
- Occupancy and equipment expense increased $2.4 million and professional and outside
services expense increased $1.1
million.
- The efficiency ratio in 1Q15 increased to 61.9% from 61.3% in
4Q14 (see page 14).
- Non-operating expenses totaled $6.0
million in 1Q15 compared to $0.6
million in 4Q14.
- The effective income tax rate was 34.0% for 1Q15 and 33.9% for
the full-year of 2014.
Commercial Banking
- Commercial loans increased $238
million, or 5% annualized, from December 31, 2014.
- Average commercial loans totaled $19.3
billion in 1Q15, an increase of $235
million, or 5% annualized, from 4Q14.
- The ratio of originated non-performing commercial loans to
originated commercial loans was 0.64% at March 31, 2015 compared to 0.76% at December 31, 2014.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $135.4
million at March 31, 2015
compared to $154.9 million at
December 31, 2014.
- Net loan charge-offs totaled $6.0
million, or 0.12% annualized, of average commercial loans in
1Q15, compared to $6.5 million, or
0.14% annualized, in 4Q14.
- For the originated commercial portfolio, the allowance for loan
losses as a percentage of loans was 0.91% at both March 31, 2015 and December 31, 2014.
- The commercial originated allowance for loan losses represented
143% of originated non-performing commercial loans at March 31, 2015 compared to 120% at December 31, 2014.
- Commercial deposits totaled $7.8
billion at March 31, 2015
compared to $7.2 billion at
December 31, 2014.
Retail Banking
- Residential mortgage loans increased $119 million, or 10% annualized,
from December 31, 2014.
- Average residential mortgage loans totaled $5.0 billion in 1Q15, an increase of $132 million, or 11% annualized, from 4Q14.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 0.78% at
March 31, 2015 compared to 0.80% at
December 31, 2014.
- Net loan charge-offs totaled $0.4
million, or 0.03% annualized, of average residential
mortgage loans in 1Q15, compared to $0.2
million, or 0.02% annualized, in 4Q14.
- Home equity loans decreased $14
million, or 3% annualized, from December 31, 2014.
- Average home equity loans totaled $2.1
billion in 1Q15, an increase of $4
million, or 1% annualized, from 4Q14.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.93% at March 31, 2015 compared to 0.85% at December 31, 2014.
- Net loan charge-offs totaled $0.5
million, or 0.10% annualized, of average home equity loans
in 1Q15, compared to $1.3 million, or
0.24% annualized, in 4Q14.
- Retail deposits (excluding brokered deposits) totaled
$16.7 billion at March 31, 2015 compared to $16.3 billion at December
31, 2014.
Conference Call
On April 16,
2015, 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) changes in accounting and regulatory
guidance applicable to banks; (7) price levels and conditions in
the public securities markets generally; (8) competition and its
effect on pricing, spending, third-party relationships and
revenues; and (9) 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
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in millions,
except per share data)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Earnings
Data:
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$ 233.9
|
$ 233.2
|
$ 233.3
|
$ 232.8
|
$ 231.8
|
Net interest
income
|
228.1
|
228.1
|
228.5
|
228.2
|
227.1
|
Provision for
loan losses
|
9.8
|
9.9
|
12.4
|
8.8
|
9.5
|
Non-interest
income (1)
|
89.0
|
86.8
|
84.0
|
100.1
|
79.9
|
Non-interest
expense
|
217.6
|
207.7
|
208.8
|
208.3
|
216.7
|
Operating
non-interest expense (2)
|
211.6
|
207.1
|
206.7
|
206.7
|
211.5
|
Income before
income tax expense
|
89.7
|
97.3
|
91.3
|
111.2
|
80.8
|
Net
income
|
59.2
|
64.7
|
61.6
|
72.3
|
53.1
|
Operating
earnings (2)
|
63.2
|
65.1
|
63.0
|
59.9
|
56.5
|
|
|
|
|
|
|
Selected Statistical
Data:
|
|
|
|
|
|
Net interest
margin (3)
|
2.91%
|
3.00%
|
3.05%
|
3.13%
|
3.17%
|
Return on
average assets (3)
|
0.66
|
0.74
|
0.72
|
0.87
|
0.65
|
Operating
return on average assets (2), (3)
|
0.71
|
0.75
|
0.74
|
0.72
|
0.69
|
Return on
average tangible assets (3)
|
0.70
|
0.79
|
0.77
|
0.93
|
0.69
|
Return on
average stockholders' equity (3)
|
5.1
|
5.5
|
5.3
|
6.3
|
4.7
|
Return on
average tangible stockholders' equity (3)
|
9.2
|
10.1
|
9.7
|
11.6
|
8.7
|
Operating
return on average tangible
|
|
|
|
|
|
stockholders' equity (2), (3)
|
9.9
|
10.1
|
9.9
|
9.6
|
9.3
|
Efficiency
ratio (2)
|
61.9
|
61.3
|
61.4
|
61.8
|
63.9
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
Basic and
diluted earnings per share
|
$ 0.20
|
$ 0.22
|
$ 0.21
|
$ 0.24
|
$ 0.18
|
Operating
earnings per share (2)
|
0.21
|
0.22
|
0.21
|
0.20
|
0.19
|
Dividends paid
per share
|
0.165
|
0.165
|
0.165
|
0.165
|
0.1625
|
Dividend
payout ratio
|
83.7%
|
76.5%
|
80.2%
|
68.4%
|
91.5%
|
Operating
dividend payout ratio (2)
|
78.3
|
76.0
|
78.4
|
82.5
|
86.0
|
Book value per
share (end of period)
|
$ 15.55
|
$ 15.44
|
$ 15.52
|
$ 15.46
|
$ 15.35
|
Tangible book
value per share (end of period) (2)
|
8.58
|
8.43
|
8.49
|
8.41
|
8.26
|
Stock
price:
|
|
|
|
|
|
High
|
15.45
|
15.50
|
15.32
|
15.23
|
15.70
|
Low
|
13.97
|
13.61
|
14.24
|
14.00
|
13.73
|
Close (end of period)
|
15.20
|
15.18
|
14.47
|
15.17
|
14.87
|
Common shares
(end of period) (in millions)
|
301.18
|
300.13
|
299.92
|
299.79
|
299.49
|
Weighted
average diluted common shares (in millions)
|
299.15
|
298.65
|
298.44
|
298.24
|
297.72
|
(1)
|
Three months ended
June 30, 2014 includes a $20.6 million net gain resulting from the
formation of a merchant services
joint venture.
|
(2)
|
See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
(3)
|
Annualized.
|
People's United
Financial, Inc.
|
FINANCIAL HIGHLIGHTS
- Continued
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Financial Condition
Data:
|
|
|
|
|
|
General:
|
|
|
|
|
|
Total assets
|
$ 36,407
|
$ 35,997
|
$ 34,775
|
$ 33,921
|
$ 33,112
|
Loans
|
26,929
|
26,592
|
25,954
|
25,455
|
24,629
|
Securities
|
5,577
|
5,012
|
4,687
|
4,580
|
4,690
|
Short-term investments (1)
|
250
|
769
|
508
|
99
|
73
|
Allowance for loan losses
|
201
|
198
|
197
|
193
|
190
|
Goodwill and other acquisition-related intangible assets
|
2,097
|
2,103
|
2,109
|
2,115
|
2,121
|
Deposits
|
27,150
|
26,138
|
25,261
|
24,089
|
23,666
|
Borrowings
|
3,143
|
3,692
|
3,416
|
3,773
|
3,887
|
Notes and debentures
|
1,042
|
1,034
|
1,022
|
1,040
|
639
|
Stockholders' equity
|
4,682
|
4,633
|
4,655
|
4,636
|
4,596
|
Total risk-weighted assets (2)
|
28,195
|
27,487
|
26,967
|
26,591
|
25,749
|
Non-performing assets (3)
|
209
|
224
|
229
|
233
|
231
|
Net loan charge-offs
|
7.2
|
8.5
|
8.1
|
6.5
|
7.0
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
Loans
|
$ 26,504
|
$ 26,136
|
$ 25,611
|
$ 24,856
|
$ 24,248
|
Securities (4)
|
5,325
|
4,718
|
4,691
|
4,674
|
4,908
|
Short-term investments (1)
|
276
|
276
|
254
|
206
|
121
|
Total earning assets
|
32,105
|
31,130
|
30,556
|
29,736
|
29,277
|
Total assets
|
35,768
|
34,763
|
34,150
|
33,273
|
32,799
|
Deposits
|
26,579
|
25,781
|
24,660
|
23,851
|
22,863
|
Borrowings
|
3,018
|
2,854
|
3,443
|
3,793
|
4,348
|
Notes and debentures
|
1,041
|
1,027
|
1,022
|
661
|
639
|
Total funding liabilities
|
30,638
|
29,662
|
29,125
|
28,305
|
27,850
|
Stockholders' equity
|
4,663
|
4,679
|
4,648
|
4,609
|
4,564
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
0.11%
|
0.13%
|
0.13%
|
0.10%
|
0.12%
|
Non-performing assets to originated loans, real estate owned and repossessed assets
(3)
|
0.80
|
0.88
|
0.92
|
0.96
|
1.00
|
Originated allowance for loan losses to:
|
|
|
|
|
|
Originated loans
(3)
|
0.74
|
0.74
|
0.75
|
0.75
|
0.78
|
Originated
non-performing loans (3)
|
107.5
|
95.5
|
94.1
|
91.7
|
92.7
|
Average stockholders' equity to average total assets
|
13.0
|
13.5
|
13.6
|
13.9
|
13.9
|
Stockholders' equity to total assets
|
12.9
|
12.9
|
13.4
|
13.7
|
13.9
|
Tangible stockholders' equity to tangible assets (5)
|
7.5
|
7.5
|
7.8
|
7.9
|
8.0
|
Total risk-based capital (2)
|
12.0
|
12.2
|
12.3
|
12.5
|
11.2
|
(1)
|
Includes securities
purchased under agreements to resell.
|
(2)
|
Consolidated.
Effective January 1, 2015, calculated in accordance with Basel III
capital rules. March 31, 2015 amounts are preliminary.
|
(3)
|
Excludes acquired
loans.
|
(4)
|
Average balances for
securities are based on amortized cost.
|
(5)
|
See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
People's United
Financial, Inc.
|
CONSOLIDATED
STATEMENTS OF CONDITION
|
|
|
|
|
|
March 31,
|
Dec. 31,
|
March 31,
|
(in
millions)
|
2015
|
2014
|
2014
|
Assets
|
|
|
|
Cash and due from
banks
|
$ 306.8
|
$ 345.1
|
$ 427.7
|
Short-term
investments
|
250.0
|
668.6
|
72.7
|
Total cash and cash equivalents
|
556.8
|
1,013.7
|
500.4
|
Securities purchased
under agreements to resell
|
-
|
100.0
|
-
|
Securities:
|
|
|
|
Trading
account securities, at fair value
|
8.3
|
8.3
|
8.3
|
Securities
available for sale, at fair value
|
4,356.8
|
3,993.7
|
3,848.1
|
Securities
held to maturity, at amortized cost
|
897.4
|
834.3
|
658.1
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
314.2
|
175.7
|
175.7
|
Total securities
|
5,576.7
|
5,012.0
|
4,690.2
|
Loans held for
sale
|
49.7
|
34.2
|
17.4
|
Loans:
|
|
|
|
Commercial
|
10,226.8
|
10,055.1
|
8,971.6
|
Commercial
real estate
|
9,470.4
|
9,404.3
|
9,003.7
|
Residential
mortgage
|
5,050.6
|
4,932.0
|
4,505.4
|
Consumer
|
2,181.5
|
2,200.6
|
2,148.5
|
Total loans
|
26,929.3
|
26,592.0
|
24,629.2
|
Less allowance
for loan losses
|
(200.9)
|
(198.3)
|
(190.3)
|
Total loans, net
|
26,728.4
|
26,393.7
|
24,438.9
|
Goodwill and other
acquisition-related intangible assets
|
2,096.6
|
2,102.5
|
2,121.1
|
Bank-owned life
insurance
|
344.4
|
343.3
|
340.3
|
Premises and
equipment
|
268.4
|
277.8
|
292.5
|
Other
assets
|
786.3
|
719.9
|
711.6
|
Total assets
|
$ 36,407.3
|
$ 35,997.1
|
$ 33,112.4
|
|
|
|
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$ 5,761.9
|
$ 5,655.1
|
$ 5,372.8
|
Savings,
interest-bearing checking and money market
|
16,086.4
|
15,252.4
|
13,858.1
|
Time
|
5,301.6
|
5,230.7
|
4,434.6
|
Total deposits
|
27,149.9
|
26,138.2
|
23,665.5
|
Borrowings:
|
|
|
|
Federal Home
Loan Bank advances
|
2,165.9
|
2,291.7
|
2,619.0
|
Federal funds
purchased
|
496.0
|
913.0
|
775.0
|
Customer
repurchase agreements
|
480.0
|
486.0
|
486.6
|
Other
borrowings
|
1.0
|
1.0
|
6.8
|
Total borrowings
|
3,142.9
|
3,691.7
|
3,887.4
|
Notes and
debentures
|
1,042.3
|
1,033.5
|
639.3
|
Other
liabilities
|
390.3
|
500.6
|
324.4
|
Total liabilities
|
31,725.4
|
31,364.0
|
28,516.6
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Common
stock
|
3.9
|
3.9
|
3.9
|
Additional paid-in
capital
|
5,304.2
|
5,291.2
|
5,276.4
|
Retained
earnings
|
833.2
|
826.7
|
778.2
|
Accumulated other
comprehensive loss
|
(140.6)
|
(168.2)
|
(137.5)
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(157.2)
|
(159.0)
|
(164.4)
|
Treasury stock, at
cost
|
(1,161.6)
|
(1,161.5)
|
(1,160.8)
|
Total stockholders' equity
|
4,681.9
|
4,633.1
|
4,595.8
|
Total liabilities and stockholders' equity
|
$ 36,407.3
|
$ 35,997.1
|
$ 33,112.4
|
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)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Interest and dividend
income:
|
|
|
|
|
|
Commercial
|
$ 88.9
|
$ 89.1
|
$ 89.1
|
$ 87.5
|
$ 85.3
|
Commercial
real estate
|
85.3
|
87.7
|
89.2
|
88.6
|
88.7
|
Residential
mortgage
|
40.2
|
39.8
|
38.1
|
37.8
|
37.8
|
Consumer
|
18.1
|
18.7
|
18.5
|
18.4
|
18.3
|
Total interest on loans
|
232.5
|
235.3
|
234.9
|
232.3
|
230.1
|
Securities
|
27.5
|
24.0
|
23.6
|
24.1
|
25.1
|
Loans held for
sale
|
0.2
|
0.2
|
0.3
|
0.2
|
0.1
|
Short-term
investments
|
0.1
|
0.1
|
0.1
|
0.1
|
0.1
|
Total interest and dividend income
|
260.3
|
259.6
|
258.9
|
256.7
|
255.4
|
Interest
expense:
|
|
|
|
|
|
Deposits
|
22.2
|
21.7
|
20.2
|
19.7
|
19.3
|
Borrowings
|
2.6
|
2.4
|
2.8
|
2.8
|
3.1
|
Notes and
debentures
|
7.4
|
7.4
|
7.4
|
6.0
|
5.9
|
Total interest expense
|
32.2
|
31.5
|
30.4
|
28.5
|
28.3
|
Net interest income
|
228.1
|
228.1
|
228.5
|
228.2
|
227.1
|
Provision for loan
losses
|
9.8
|
9.9
|
12.4
|
8.8
|
9.5
|
Net interest income after provision for loan losses
|
218.3
|
218.2
|
216.1
|
219.4
|
217.6
|
Non-interest
income:
|
|
|
|
|
|
Bank service
charges
|
30.1
|
32.0
|
33.3
|
32.8
|
30.5
|
Commercial
banking lending fees
|
12.3
|
8.6
|
8.6
|
7.4
|
8.8
|
Investment
management fees
|
10.8
|
10.5
|
10.7
|
10.6
|
9.8
|
Operating
lease income
|
10.8
|
10.2
|
10.2
|
9.9
|
11.3
|
Insurance
revenue
|
7.6
|
6.6
|
8.8
|
6.8
|
7.7
|
Customer
interest rate swap income, net
|
5.3
|
3.2
|
1.8
|
2.2
|
1.4
|
Brokerage
commissions
|
3.2
|
3.4
|
3.4
|
3.6
|
3.2
|
Net gains
(losses) on sales of acquired loans
|
1.9
|
(0.3)
|
(0.2)
|
(0.4)
|
-
|
Net gains on
sales of residential mortgage loans
|
0.7
|
1.0
|
1.1
|
-
|
0.8
|
Net security
gains
|
-
|
2.7
|
0.2
|
-
|
0.1
|
Gain on
merchant services joint venture, net of expenses
|
-
|
-
|
-
|
20.6
|
-
|
Other
non-interest income
|
6.3
|
8.9
|
6.1
|
6.6
|
6.3
|
Total non-interest income (1)
|
89.0
|
86.8
|
84.0
|
100.1
|
79.9
|
Non-interest
expense:
|
|
|
|
|
|
Compensation
and benefits
|
114.8
|
108.2
|
108.1
|
109.3
|
110.4
|
Occupancy and
equipment
|
38.7
|
36.3
|
36.4
|
36.6
|
38.0
|
Professional
and outside services
|
15.8
|
14.7
|
14.3
|
14.9
|
15.3
|
Regulatory
assessments
|
9.3
|
9.4
|
8.5
|
9.0
|
8.7
|
Operating
lease expense
|
9.3
|
8.9
|
8.7
|
8.7
|
11.1
|
Amortization
of other acquisition-related intangible assets
|
5.9
|
6.2
|
6.2
|
6.2
|
6.2
|
Other
non-interest expense
|
23.8
|
24.0
|
26.6
|
23.6
|
27.0
|
Total non-interest expense (1)
|
217.6
|
207.7
|
208.8
|
208.3
|
216.7
|
Income before income tax expense
|
89.7
|
97.3
|
91.3
|
111.2
|
80.8
|
Income tax
expense
|
30.5
|
32.6
|
29.7
|
38.9
|
27.7
|
Net income
|
$ 59.2
|
$ 64.7
|
$ 61.6
|
$ 72.3
|
$ 53.1
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
$ 0.20
|
$ 0.22
|
$ 0.21
|
$ 0.24
|
$ 0.18
|
(1)
|
Total non-interest
income includes $20.6 million of non-operating income for the three
months ended June 30, 2014. Total non-interest expense includes $6.0 million,
$0.6 million, $2.1 million, $1.6 million and $5.2 million of
non-operating expenses for the
three months ended March 31, 2015, Dec. 31, 2014, Sept. 30, 2014,
June 30, 2014 and March 31, 2014, 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,
2015
|
December 31,
2014
|
Three months
ended
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
Short-term
investments (2)
|
$ 275.9
|
$ 0.1
|
0.20%
|
$ 276.1
|
$ 0.1
|
0.20%
|
Securities
(3)
|
5,325.0
|
30.7
|
2.31
|
4,718.4
|
26.7
|
2.26
|
Loans:
|
|
|
|
|
|
|
Commercial
(4)
|
9,896.0
|
91.5
|
3.70
|
9,694.2
|
91.5
|
3.78
|
Commercial
real estate
|
9,401.6
|
85.3
|
3.63
|
9,368.8
|
87.7
|
3.75
|
Residential
mortgage
|
5,010.1
|
40.4
|
3.23
|
4,877.8
|
40.0
|
3.28
|
Consumer
|
2,196.4
|
18.1
|
3.30
|
2,195.0
|
18.7
|
3.40
|
Total loans
|
26,504.1
|
235.3
|
3.55
|
26,135.8
|
237.9
|
3.64
|
Total earning assets
|
32,105.0
|
$ 266.1
|
3.32%
|
31,130.3
|
$ 264.7
|
3.40%
|
Other
assets
|
3,663.3
|
|
|
3,633.1
|
|
|
Total assets
|
$ 35,768.3
|
|
|
$ 34,763.4
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest-bearing
|
$ 5,603.2
|
$ -
|
- %
|
$ 5,575.7
|
$ -
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
and money market
|
15,692.0
|
10.0
|
0.26
|
15,035.6
|
9.8
|
0.26
|
Time
|
5,284.1
|
12.2
|
0.92
|
5,169.5
|
11.9
|
0.92
|
Total deposits
|
26,579.3
|
22.2
|
0.33
|
25,780.8
|
21.7
|
0.34
|
Borrowings:
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,058.0
|
2.2
|
0.42
|
1,943.4
|
2.0
|
0.42
|
Customer
repurchase agreements
|
486.6
|
0.2
|
0.18
|
461.1
|
0.2
|
0.19
|
Federal funds
purchased
|
472.5
|
0.2
|
0.17
|
447.8
|
0.2
|
0.16
|
Other
borrowings
|
1.0
|
-
|
1.78
|
1.3
|
-
|
1.36
|
Total borrowings
|
3,018.1
|
2.6
|
0.34
|
2,853.6
|
2.4
|
0.34
|
Notes and
debentures
|
1,040.7
|
7.4
|
2.83
|
1,027.5
|
7.4
|
2.90
|
Total funding liabilities
|
30,638.1
|
$ 32.2
|
0.42%
|
29,661.9
|
$ 31.5
|
0.43%
|
Other
liabilities
|
467.1
|
|
|
422.3
|
|
|
Total liabilities
|
31,105.2
|
|
|
30,084.2
|
|
|
Stockholders'
equity
|
4,663.1
|
|
|
4,679.2
|
|
|
Total liabilities and
|
|
|
|
|
|
|
stockholders'
equity
|
$ 35,768.3
|
|
|
$ 34,763.4
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (5)
|
|
$ 233.9
|
2.90%
|
|
$ 233.2
|
2.97%
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.91%
|
|
|
3.00%
|
(1)
|
Average yields earned
and rates paid are annualized.
|
(2)
|
Includes securities
purchased under agreements to resell.
|
(3)
|
Average balances and
yields for securities are based on amortized cost.
|
(4)
|
Includes commercial
and industrial loans and equipment financing loans.
|
(5)
|
The fully taxable
equivalent adjustment was $5.8 million, $5.1 million and $4.7
million for the three months ended March 31, 2015, December 31, 2014 and March 31, 2014,
respectively.
|
People's United
Financial, Inc.
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
March 31,
2014
|
Three months
ended
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
Short-term
investments (2)
|
$ 120.9
|
$ 0.1
|
0.19%
|
Securities
(3)
|
4,907.9
|
27.3
|
2.23
|
Loans:
|
|
|
|
Commercial
(4)
|
8,702.7
|
87.8
|
4.04
|
Commercial
real estate
|
8,904.5
|
88.7
|
3.98
|
Residential
mortgage
|
4,482.4
|
37.9
|
3.38
|
Consumer
|
2,158.7
|
18.3
|
3.40
|
Total loans
|
24,248.3
|
232.7
|
3.84
|
Total earning assets
|
29,277.1
|
$ 260.1
|
3.55%
|
Other
assets
|
3,521.7
|
|
|
Total assets
|
$ 32,798.8
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$ 5,187.5
|
$ -
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
and money market
|
13,278.3
|
8.6
|
0.26
|
Time
|
4,397.6
|
10.7
|
0.98
|
Total deposits
|
22,863.4
|
19.3
|
0.34
|
Borrowings:
|
|
|
|
Federal Home
Loan Bank advances
|
3,221.6
|
2.6
|
0.32
|
Customer
repurchase agreements
|
507.6
|
0.2
|
0.19
|
Federal funds
purchased
|
610.3
|
0.3
|
0.17
|
Other
borrowings
|
8.3
|
-
|
0.25
|
Total borrowings
|
4,347.8
|
3.1
|
0.28
|
Notes and
debentures
|
639.2
|
5.9
|
3.69
|
Total funding liabilities
|
27,850.4
|
$ 28.3
|
0.41%
|
Other
liabilities
|
384.3
|
|
|
Total liabilities
|
28,234.7
|
|
|
Stockholders'
equity
|
4,564.1
|
|
|
Total liabilities and
|
|
|
|
stockholders'
equity
|
$ 32,798.8
|
|
|
|
|
|
|
Net interest
income/spread (5)
|
|
$ 231.8
|
3.14%
|
|
|
|
|
Net interest
margin
|
|
|
3.17%
|
(1)
|
Average yields earned
and rates paid are annualized.
|
(2)
|
Includes securities
purchased under agreements to resell.
|
(3)
|
Average balances and
yields for securities are based on amortized cost.
|
(4)
|
Includes commercial
and industrial loans and equipment financing loans.
|
(5)
|
The fully taxable
equivalent adjustment was $5.8 million, $5.1 million and $4.7
million for the three months ended March 31, 2015, December 31, 2014 and March 31, 2014,
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)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Originated
non-performing loans:
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
Commercial
real estate
|
$ 43.3
|
$ 60.2
|
$ 56.0
|
$ 59.7
|
$ 60.1
|
Commercial and
industrial
|
42.6
|
55.8
|
52.8
|
45.8
|
41.7
|
Equipment
financing
|
34.9
|
25.4
|
29.3
|
30.7
|
22.0
|
Total
|
120.8
|
141.4
|
138.1
|
136.2
|
123.8
|
Retail:
|
|
|
|
|
|
Residential
mortgage
|
37.5
|
37.6
|
41.8
|
44.8
|
51.3
|
Home
equity
|
19.4
|
17.9
|
16.6
|
18.0
|
19.0
|
Other
consumer
|
0.1
|
0.1
|
0.1
|
0.1
|
0.2
|
Total
|
57.0
|
55.6
|
58.5
|
62.9
|
70.5
|
Total originated non-performing loans (1)
|
177.8
|
197.0
|
196.6
|
199.1
|
194.3
|
REO:
|
|
|
|
|
|
Residential
|
16.5
|
13.6
|
16.2
|
14.9
|
17.0
|
Commercial
|
10.2
|
11.0
|
12.4
|
13.9
|
16.5
|
Total REO
|
26.7
|
24.6
|
28.6
|
28.8
|
33.5
|
Repossessed
assets
|
4.3
|
2.5
|
3.5
|
4.8
|
3.7
|
Total non-performing assets
|
$ 208.8
|
$ 224.1
|
$ 228.7
|
$ 232.7
|
$ 231.5
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount) (2)
|
$ 74.8
|
$ 103.6
|
$ 116.3
|
$ 118.3
|
$ 145.7
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
of originated
loans
|
0.68%
|
0.77%
|
0.79%
|
0.82%
|
0.84%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
0.80
|
0.88
|
0.92
|
0.96
|
1.00
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
allowance for loan
losses
|
7.52
|
8.24
|
8.37
|
8.61
|
8.72
|
(1)
|
Reported net of
government guarantees totaling $17.5 million at March 31, 2015,
$17.6 million at Dec. 31, 2014, $18.1 million at Sept. 30, 2014, $18.4 million at
June 30, 2014 and $19.2 million at March 31, 2014.
|
(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)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
Balance at
beginning of period
|
$ 188.1
|
$ 185.0
|
$ 182.5
|
$ 180.0
|
$ 177.5
|
Charge-offs
|
(8.1)
|
(9.7)
|
(9.1)
|
(8.1)
|
(6.4)
|
Recoveries
|
0.9
|
1.2
|
1.2
|
2.6
|
0.9
|
Net loan charge-offs
|
(7.2)
|
(8.5)
|
(7.9)
|
(5.5)
|
(5.5)
|
Provision for
loan losses
|
10.2
|
11.6
|
10.4
|
8.0
|
8.0
|
Balance at end of period
|
191.1
|
188.1
|
185.0
|
182.5
|
180.0
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
Balance at
beginning of period
|
10.2
|
11.9
|
10.1
|
10.3
|
10.3
|
Charge-offs
|
-
|
-
|
(0.2)
|
(1.0)
|
(1.5)
|
Provision for
loan losses
|
(0.4)
|
(1.7)
|
2.0
|
0.8
|
1.5
|
Balance at end of period
|
9.8
|
10.2
|
11.9
|
10.1
|
10.3
|
Total allowance for loan losses
|
$ 200.9
|
$ 198.3
|
$ 196.9
|
$ 192.6
|
$ 190.3
|
|
|
|
|
|
|
Commercial originated
allowance for loan loss
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
0.91%
|
0.91%
|
0.92%
|
0.92%
|
0.95%
|
Retail originated
allowance for loan losses
|
|
|
|
|
|
as a
percentage of originated retail loans
|
0.26
|
0.27
|
0.29
|
0.30
|
0.32
|
Total originated
allowance for loan losses
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
Originated loans
|
0.74
|
0.74
|
0.75
|
0.75
|
0.78
|
Originated non-performing loans
|
107.5
|
95.5
|
94.1
|
91.7
|
92.7
|
|
|
|
|
|
|
NET LOAN CHARGE-OFFS
(RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Commercial:
|
|
|
|
|
|
Commercial
real estate
|
$ 2.8
|
$ 3.3
|
$ 4.2
|
$ 3.0
|
$ 2.9
|
Commercial and
industrial
|
2.1
|
3.2
|
1.8
|
1.8
|
0.6
|
Equipment
financing
|
1.1
|
-
|
(0.1)
|
0.1
|
0.5
|
Total
|
6.0
|
6.5
|
5.9
|
4.9
|
4.0
|
Retail:
|
|
|
|
|
|
Residential
mortgage
|
0.4
|
0.2
|
0.7
|
0.5
|
1.0
|
Home
equity
|
0.5
|
1.3
|
1.2
|
0.8
|
1.7
|
Other
consumer
|
0.3
|
0.5
|
0.3
|
0.3
|
0.3
|
Total
|
1.2
|
2.0
|
2.2
|
1.6
|
3.0
|
Total
|
$ 7.2
|
$ 8.5
|
$ 8.1
|
$ 6.5
|
$ 7.0
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
average total
loans (annualized)
|
0.11%
|
0.13%
|
0.13%
|
0.10%
|
0.12%
|
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
financial institutions. Further, the efficiency ratio and
operating earnings metrics are
used by management in its assessment of financial performance,
including non-interest expense control, while the tangible 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 fee-based
businesses 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) non-recurring gains/losses; (ii)
writedowns of banking house assets; (iii) severance-related costs; (iv) merger-related
expenses, including acquisition integration and other costs;
and (v) charges related to
executive-level management separation costs, 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)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Total non-interest
expense
|
$ 217.6
|
$ 207.7
|
$ 208.8
|
$ 208.3
|
$ 216.7
|
Adjustments to arrive
at operating
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
Writedowns of
banking house assets
|
(5.3)
|
-
|
(1.8)
|
-
|
(4.4)
|
Severance-related costs
|
(0.7)
|
(0.6)
|
(0.3)
|
(1.6)
|
(0.8)
|
Total
|
(6.0)
|
(0.6)
|
(2.1)
|
(1.6)
|
(5.2)
|
Operating non-interest expense
|
211.6
|
207.1
|
206.7
|
206.7
|
211.5
|
|
|
|
|
|
|
Operating
lease expense (1)
|
(9.3)
|
(8.9)
|
(8.7)
|
(8.7)
|
(11.1)
|
Amortization
of other acquisition-related
|
|
|
|
|
|
intangible assets
|
(5.9)
|
(6.2)
|
(6.2)
|
(6.2)
|
(6.2)
|
Other
(2)
|
(2.0)
|
(2.4)
|
(2.2)
|
(3.7)
|
(2.0)
|
Total non-interest expense for efficiency ratio
|
$ 194.4
|
$ 189.6
|
$ 189.6
|
$ 188.1
|
$ 192.2
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
$ 233.9
|
$ 233.2
|
$ 233.3
|
$ 232.8
|
$ 231.8
|
Total non-interest
income
|
89.0
|
86.8
|
84.0
|
100.1
|
79.9
|
Total revenues
|
322.9
|
320.0
|
317.3
|
332.9
|
311.7
|
Adjustments:
|
|
|
|
|
|
Operating
lease expense (1)
|
(9.3)
|
(8.9)
|
(8.7)
|
(8.7)
|
(11.1)
|
BOLI FTE
adjustment
|
0.6
|
0.9
|
0.7
|
0.6
|
0.6
|
Net security
gains
|
-
|
(2.7)
|
(0.2)
|
-
|
(0.1)
|
Gain on
merchant services joint venture,
|
|
|
|
|
|
net of expenses
|
-
|
-
|
-
|
(20.6)
|
-
|
Other
(3)
|
-
|
0.1
|
(0.5)
|
-
|
(0.1)
|
Total revenues for efficiency ratio
|
$ 314.2
|
$ 309.4
|
$ 308.6
|
$ 304.2
|
$ 301.0
|
Efficiency ratio
|
61.9%
|
61.3%
|
61.4%
|
61.8%
|
63.9%
|
(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 fee-based businesses 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)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Net income, as
reported
|
$ 59.2
|
$ 64.7
|
$ 61.6
|
$ 72.3
|
$ 53.1
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
Writedowns of
banking house assets
|
5.3
|
-
|
1.8
|
-
|
4.4
|
Severance-related costs
|
0.7
|
0.6
|
0.3
|
1.6
|
0.8
|
Gain on
merchant services joint venture,
|
|
|
|
|
|
net of expenses
|
-
|
-
|
-
|
(20.6)
|
-
|
Total pre-tax adjustments
|
6.0
|
0.6
|
2.1
|
(19.0)
|
5.2
|
Tax effect
|
(2.0)
|
(0.2)
|
(0.7)
|
6.6
|
(1.8)
|
Total adjustments, net of tax
|
4.0
|
0.4
|
1.4
|
(12.4)
|
3.4
|
Operating earnings
|
$ 63.2
|
$ 65.1
|
$ 63.0
|
$ 59.9
|
$ 56.5
|
|
|
|
|
|
|
Earnings per share,
as reported
|
$ 0.20
|
$ 0.22
|
$ 0.21
|
$ 0.24
|
$ 0.18
|
Adjustments to arrive
at operating
|
|
|
|
|
|
earnings per
share:
|
|
|
|
|
|
Writedowns of
banking house assets
|
0.01
|
-
|
-
|
-
|
0.01
|
Severance-related costs
|
-
|
-
|
-
|
-
|
-
|
Gain on
merchant services joint venture,
|
|
|
|
|
|
net of expenses
|
-
|
-
|
-
|
(0.04)
|
-
|
Total adjustments per share
|
0.01
|
-
|
-
|
(0.04)
|
0.01
|
Operating earnings per share
|
$ 0.21
|
$ 0.22
|
$ 0.21
|
$ 0.20
|
$ 0.19
|
|
|
|
|
|
|
Average total
assets
|
$ 35,768
|
$ 34,763
|
$ 34,150
|
$ 33,273
|
$ 32,799
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
average assets
(annualized)
|
0.71%
|
0.75%
|
0.74%
|
0.72%
|
0.69%
|
|
|
|
|
|
|
OPERATING RETURN ON
AVERAGE TANGIBLE STOCKHOLDERS' EQUITY
|
|
Three Months
Ended
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Operating
earnings
|
$ 63.2
|
$ 65.1
|
$ 63.0
|
$ 59.9
|
$ 56.5
|
|
|
|
|
|
|
Average stockholders'
equity
|
$ 4,663
|
$ 4,679
|
$ 4,648
|
$ 4,609
|
$ 4,564
|
Less: Average
goodwill and average other
|
|
|
|
|
|
acquisition-related intangible assets
|
2,100
|
2,106
|
2,112
|
2,118
|
2,125
|
Average tangible
stockholders' equity
|
$ 2,563
|
$ 2,573
|
$ 2,536
|
$ 2,491
|
$ 2,439
|
|
|
|
|
|
|
Operating return on
average tangible
|
|
|
|
|
|
stockholders'
equity (annualized)
|
9.9%
|
10.1%
|
9.9%
|
9.6%
|
9.3%
|
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)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Dividends
paid
|
$ 49.5
|
$ 49.5
|
$ 49.4
|
$ 49.4
|
$ 48.6
|
|
|
|
|
|
|
Operating
earnings
|
$ 63.2
|
$ 65.1
|
$ 63.0
|
$ 59.9
|
$ 56.5
|
|
|
|
|
|
|
Operating dividend
payout ratio
|
78.3%
|
76.0%
|
78.4%
|
82.5%
|
86.0%
|
|
|
|
|
|
|
TANGIBLE EQUITY
RATIO
|
|
|
|
|
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(dollars in
millions)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Total stockholders'
equity
|
$ 4,682
|
$ 4,633
|
$ 4,655
|
$ 4,636
|
$ 4,596
|
Less: Goodwill and
other
|
|
|
|
|
|
acquisition-related intangible assets
|
2,097
|
2,103
|
2,109
|
2,115
|
2,121
|
Tangible
stockholders' equity
|
$ 2,585
|
$ 2,530
|
$ 2,546
|
$ 2,521
|
$ 2,475
|
|
|
|
|
|
|
Total
assets
|
$ 36,407
|
$ 35,997
|
$ 34,775
|
$ 33,921
|
$ 33,112
|
Less: Goodwill and
other
|
|
|
|
|
|
acquisition-related intangible assets
|
2,097
|
2,103
|
2,109
|
2,115
|
2,121
|
Tangible
assets
|
$ 34,310
|
$ 33,894
|
$ 32,666
|
$ 31,806
|
$ 30,991
|
|
|
|
|
|
|
Tangible equity
ratio
|
7.5%
|
7.5%
|
7.8%
|
7.9%
|
8.0%
|
|
|
|
|
|
|
TANGIBLE BOOK VALUE
PER SHARE
|
|
|
|
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
(in millions, except
per share data)
|
2015
|
2014
|
2014
|
2014
|
2014
|
Tangible
stockholders' equity
|
$ 2,585
|
$ 2,530
|
$ 2,546
|
$ 2,521
|
$ 2,475
|
|
|
|
|
|
|
Common shares
issued
|
397.81
|
396.85
|
396.71
|
396.66
|
396.45
|
Less: Shares
classified as treasury shares
|
89.05
|
89.05
|
89.04
|
89.03
|
89.03
|
Unallocated ESOP shares
|
7.58
|
7.67
|
7.75
|
7.84
|
7.93
|
Common
shares
|
301.18
|
300.13
|
299.92
|
299.79
|
299.49
|
|
|
|
|
|
|
Tangible book value
per share
|
$ 8.58
|
$ 8.43
|
$ 8.49
|
$ 8.41
|
$ 8.26
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-first-quarter-net-income-of-020-per-share-and-operating-earnings-of-021-per-share-announces-dividend-increase-300067020.html
SOURCE People's United Financial, Inc.