BRIDGEPORT, Conn., Oct. 20, 2016 /PRNewswire/ -- People's United
Financial, Inc. (NASDAQ: PBCT) today reported net income of
$73.7 million, or $0.24 per share, for the third quarter of 2016,
compared to $68.4 million, or
$0.23 per share, for the third
quarter of 2015, and $68.5 million,
or $0.23 per share, for the second
quarter of 2016. Included in this quarter's results were
merger-related expenses of $3.1
million ($2.1 million
after-tax), or $0.01 per share.
The Company's Board of Directors declared a $0.17 per share quarterly dividend, payable
November 15, 2016 to shareholders of
record on November 1, 2016.
Based on the closing stock price on October
19, 2016, the dividend yield on People's United Financial
common stock is 4.3 percent.
"The Company's performance continues to reflect business
momentum generated through our consistent, solution-oriented
approach to banking," commented Jack
Barnes, President and Chief Executive Officer. "We have
always partnered with clients to deliver thoughtful,
straightforward solutions that address their financial needs. This
ongoing commitment continues to differentiate People's United
throughout our attractive footprint, enabling us to deepen existing
relationships and develop new ones. As a result, we have grown the
loan portfolio for 24 consecutive quarters, while maintaining
exceptional asset quality, and over the same period nearly doubled
our deposit base and increased wealth management assets under
discretionary management by approximately 40 percent."
Barnes concluded, "The closing and integration processes of the
Suffolk Bancorp and Gerstein Fisher
transactions are progressing very well. We have very experienced
teams executing on our time-tested acquisition approach. We expect
to close Gerstein Fisher in early
November and continue to move toward closing Suffolk, pending
regulatory approvals. As a result of the integration activities
over the past few months, we have come away even more excited about
the expected benefits of each of these transactions, particularly
the talent that will be joining us. We look forward to building
upon their successes to further grow and strengthen People's United
in the New York metro area."
"We are pleased with our financial results this quarter, which
reflect further improvements in profitability and continued growth
in earning assets," stated David
Rosato, Senior Executive Vice President and Chief Financial
Officer. "Record quarterly net income of $73.7 million increased eight percent from the
prior year quarter and generated a return on average tangible
equity of 10.7 percent. The efficiency ratio of 59.9 percent
improved 180 basis points from a year ago due to solid growth in
both net interest income and fee revenues as well as ongoing
proactive expense management. The net interest margin for the
quarter was 2.80 percent, an increase of one basis point on a
linked-quarter basis."
Rosato concluded, "The loan portfolio continued to benefit from
our diversified business mix. Third quarter annualized loan growth
was five percent, with particularly strong results in residential
mortgage as well as commercial and industrial lending. Our
conservative approach to underwriting remains evident as net
charge-offs as a percentage of average loans were only four basis
points in the quarter, the lowest level in over nine years.
Deposits grew nine percent on an annualized basis during the
quarter primarily due to higher non-interest-bearing and municipal
balances, while the overall cost of deposits declined one basis
point. Furthermore, our balance sheet remains asset sensitive,
which will position us well in a rising interest rate
environment."
At September 30, 2016, People's
United Financial's common equity tier 1 capital and total
risk-based capital ratios were 9.7 percent and 11.5 percent,
respectively, and the tangible equity ratio stood at 7.2 percent.
For People's United Bank, N.A., common equity tier 1 capital
and total risk-based capital ratios were 10.8 percent and 12.8
percent, respectively, at September 30,
2016.
Net loan charge-offs as a percentage of average total loans on
an annualized basis were 0.04 percent in the third quarter of 2016,
a decrease from 0.07 percent in the second quarter of 2016 and 0.06
percent in the third quarter of 2015. For the originated loan
portfolio, non-performing loans equaled 0.54 percent of loans at
September 30, 2016, a decrease from
0.56 percent at June 30, 2016 and
0.68 percent at September 30,
2015.
Return on average assets of 0.73 percent for the third quarter
of 2016 increased from 0.70 percent in the second quarter of 2016
and was consistent with the third quarter of 2015. Return on
average tangible stockholders' equity of 10.7 percent in the third
quarter of 2016 increased from 10.1 percent in the second quarter
of 2016 and 10.5 percent in the third quarter of 2015.
People's United Financial, Inc., a diversified financial
services company with $41 billion in
total assets, provides commercial and retail banking, as well as
wealth management services through a network of approximately 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.
3Q 2016 Financial Highlights
Summary
- Net income totaled $73.7 million,
or $0.24 per share.
- Operating earnings totaled $75.8
million, or $0.25 per
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $245.3
million in 3Q16 compared to $240.0
million in 2Q16.
- Net interest margin increased one basis point from 2Q16 to
2.80% reflecting:
- One additional calendar day in 3Q16 (increase of two basis
points).
- Improved loan yields and mix (increase of two basis
points).
- Lower yield on the securities portfolio (decrease of two basis
points).
- Increase in average borrowing balances and rate (decrease of
one basis point).
- Provision for loan losses totaled $8.4
million.
- Net loan charge-offs totaled $2.5
million, of which $0.8 million
related to loans with previously-established specific
reserves.
- Net loan charge-off ratio of 0.04% in 3Q16.
- Reflects a $6.7 million increase
in the originated allowance for loan losses.
- Non-interest income was $90.8
million in 3Q16 compared to $85.4
million in 2Q16.
- Insurance revenue increased $2.8
million, reflecting the benefit from recent acquisitions as
well as the seasonal nature of insurance renewals.
- Net gains on sales of residential mortgages increased
$1.0 million.
- Bank service charges increased $0.6
million.
- Investment management fees increased $0.2 million.
- Commercial banking lending fees decreased $2.1 million.
- At September 30, 2016, assets
under administration, which are not reported as assets of People's
United Financial, totaled $18.2
billion, of which $5.7 billion
are under discretionary management, compared to $16.5 billion and $5.6
billion, respectively, at June 30,
2016.
- Non-interest expense totaled $221.4
million in 3Q16 compared to $212.9
million in 2Q16.
- Operating non-interest expense totaled $218.3 million in 3Q16 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense increased $4.7 million, primarily reflecting the impact of
one additional work day and higher benefit-related costs in
3Q16.
- Regulatory assessments expense increased $0.7 million.
- Professional and outside services expense, excluding
$3.1 million of merger-related
expenses, decreased $1.8
million.
- The efficiency ratio was 59.9% in 3Q16 compared to 60.4% in
2Q16 (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- The effective income tax rate was 30.6% for 3Q16 and 32.4% for
the first nine months of 2016, compared to 33.4% for the full-year
of 2015.
Commercial Banking
- Commercial loans totaled $21.2
billion at September 30, 2016,
an increase of $107 million, or 2%
annualized, from June 30, 2016.
- The mortgage warehouse portfolio increased $10 million from June 30,
2016.
- Average commercial loans totaled $21.0
billion in 3Q16, an increase of $310
million, or 6% annualized, from 2Q16.
- The average mortgage warehouse portfolio increased $117 million in 3Q16.
- Commercial deposits totaled $10.3
billion at September 30, 2016
compared to $9.5 billion at
June 30, 2016.
- The ratio of originated non-performing commercial loans to
originated commercial loans was 0.53% at both September 30, 2016 and June 30, 2016.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $127.4
million at September 30, 2016
compared to $125.0 million at
June 30, 2016.
- For the originated commercial portfolio, the allowance for loan
losses as a percentage of loans was 0.94% at September 30, 2016 compared to 0.92% at
June 30, 2016.
- The commercial originated allowance for loan losses represented
178% of originated non-performing commercial loans at September 30, 2016 compared to 172% at
June 30, 2016.
Retail Banking
- Residential mortgage loans increased $239 million, or 17% annualized, from
June 30, 2016.
- Average residential mortgage loans totaled $5.9 billion in 3Q16, an increase of $255 million, or 18% annualized, from 2Q16.
- Home equity loans decreased $16
million from June 30, 2016.
- Average home equity loans totaled $2.1
billion in 3Q16, a decrease of $18
million from 2Q16.
- Retail deposits (excluding brokered deposits) totaled
$16.8 billion at September 30, 2016 compared to $16.9 billion at June 30,
2016.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 0.48% at
September 30, 2016 compared to 0.53%
at June 30, 2016.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.80% at September 30, 2016 compared to 0.83% at
June 30, 2016.
Conference Call
On October 20,
2016, at 5 p.m., Eastern Time,
People's United Financial will host a conference call to discuss
this earnings announcement. The call may be heard through
www.peoples.com by selecting "Investor Relations" in the "About Us"
section on the home page, and then selecting "Conference Calls" in
the "News and Events" section. Additional materials relating
to the call may also be accessed at People's United Bank's web
site. The call will be archived on the web site and available
for approximately 90 days.
Certain statements contained in this release are forward-looking
in nature. These include all statements about People's United
Financial's plans, objectives, expectations and other statements
that are not historical facts, and usually use words such as
"expect," "anticipate," "believe," "should" and similar
expressions. Such statements represent management's current
beliefs, based upon information available at the time the
statements are made, with regard to the matters addressed. All
forward-looking statements are subject to risks and uncertainties
that could cause People's United Financial's actual results or
financial condition to differ materially from those expressed in or
implied by such statements. Factors of particular importance to
People's United Financial include, but are not limited to: (1)
changes in general, national or regional economic conditions; (2)
changes in interest rates; (3) changes in loan default and
charge-off rates; (4) changes in deposit levels; (5) changes in
levels of income and expense in non-interest income and expense
related activities; (6) changes in accounting and regulatory
guidance applicable to banks; (7) price levels and conditions in
the public securities markets generally; (8) competition and its
effect on pricing, spending, third-party relationships and
revenues; (9) the successful integration of acquisitions; and (10)
changes in regulation resulting from or relating to financial
reform legislation. People's United Financial does not undertake
any obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Access Information About People's United Financial at
www.peoples.com.
People's United
Financial, Inc.
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
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|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in millions,
except per share data)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Earnings
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
254.2
|
$
|
247.7
|
$
|
247.4
|
$
|
245.3
|
$
|
241.1
|
|
Net interest
income
|
|
245.3
|
|
240.0
|
|
240.1
|
|
238.8
|
|
234.8
|
|
Provision for
loan losses
|
|
8.4
|
|
10.0
|
|
10.5
|
|
9.7
|
|
6.2
|
|
Non-interest
income (1)
|
|
90.8
|
|
85.4
|
|
82.3
|
|
93.3
|
|
87.1
|
|
Non-interest
expense (2)
|
|
221.4
|
|
212.9
|
|
217.3
|
|
217.0
|
|
214.2
|
|
Income before
income tax expense
|
|
106.3
|
|
102.5
|
|
94.6
|
|
105.4
|
|
101.5
|
|
Net income
(2)
|
|
73.7
|
|
68.5
|
|
62.9
|
|
70.8
|
|
68.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (3)
|
|
2.80
|
%
|
2.79
|
%
|
2.83
|
%
|
2.87
|
%
|
2.87
|
%
|
Return on
average assets (2), (3)
|
|
0.73
|
|
0.70
|
|
0.65
|
|
0.75
|
|
0.73
|
|
Return on
average tangible assets (3)
|
|
0.77
|
|
0.73
|
|
0.69
|
|
0.79
|
|
0.78
|
|
Return on
average stockholders' equity (3)
|
|
6.1
|
|
5.7
|
|
5.3
|
|
6.0
|
|
5.8
|
|
Return on
average tangible stockholders' equity (2), (3)
|
10.7
|
|
10.1
|
|
9.4
|
|
10.7
|
|
10.5
|
|
Efficiency
ratio (2)
|
|
59.9
|
|
60.4
|
|
62.7
|
|
61.0
|
|
61.7
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|
|
|
|
|
|
|
|
|
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Common Share
Data:
|
|
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|
|
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|
|
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Basic and
diluted earnings per share (2)
|
$
|
0.24
|
$
|
0.23
|
$
|
0.21
|
$
|
0.23
|
$
|
0.23
|
|
Dividends paid
per share
|
|
0.17
|
|
0.17
|
|
0.1675
|
|
0.1675
|
|
0.1675
|
|
Dividend
payout ratio (2)
|
|
70.1
|
%
|
75.4
|
%
|
80.6
|
%
|
71.5
|
%
|
73.9
|
%
|
Book value per
share (end of period)
|
$
|
15.99
|
$
|
15.91
|
$
|
15.80
|
$
|
15.62
|
$
|
15.64
|
|
Tangible book
value per share (end of period) (2)
|
|
9.18
|
|
9.07
|
|
8.94
|
|
8.73
|
|
8.75
|
|
Stock
price:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
16.40
|
|
16.68
|
|
16.27
|
|
16.93
|
|
16.95
|
|
Low
|
|
14.22
|
|
13.80
|
|
13.62
|
|
15.00
|
|
14.69
|
|
Close (end of period)
|
|
15.82
|
|
14.66
|
|
15.93
|
|
16.15
|
|
15.73
|
|
Common shares
(end of period) (in millions)
|
|
304.02
|
|
303.55
|
|
303.27
|
|
302.86
|
|
302.39
|
|
Weighted
average diluted common shares (in millions)
|
303.24
|
|
302.48
|
|
301.86
|
|
301.38
|
|
301.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Three months
ended December 31, 2015 includes a $9.2 million net gain resulting
from the sale of People's United
|
Bank's payroll
services business.
|
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|
|
(2) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
(3)
Annualized.
|
|
|
|
|
|
|
|
|
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|
People's United
Financial, Inc.
|
|
|
|
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FINANCIAL
HIGHLIGHTS
|
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Nine Months
Ended
|
|
|
September
30,
|
|
(dollars in millions,
except per share data)
|
|
2016
|
|
2015
|
|
|
Earnings
Data:
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
749.3
|
$
|
712.0
|
|
|
Net interest
income
|
|
725.4
|
|
693.3
|
|
|
Provision for
loan losses
|
|
28.9
|
|
23.7
|
|
|
Non-interest
income
|
|
258.5
|
|
259.1
|
|
|
Non-interest
expense (1)
|
|
651.6
|
|
643.6
|
|
|
Income before
income tax expense
|
|
303.4
|
|
285.1
|
|
|
Net income
(1)
|
|
205.1
|
|
189.3
|
|
|
|
|
|
|
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|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
Net interest
margin (2)
|
|
2.80
|
%
|
2.89
|
%
|
|
Return on
average assets (1), (2)
|
|
0.69
|
|
0.69
|
|
|
Return on
average tangible assets (2)
|
|
0.73
|
|
0.73
|
|
|
Return on
average stockholders' equity (2)
|
|
5.7
|
|
5.4
|
|
|
Return on
average tangible stockholders' equity (1), (2)
|
|
10.1
|
|
9.7
|
|
|
Efficiency
ratio (1)
|
|
61.0
|
|
61.7
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
Basic and
diluted earnings per share (1)
|
$
|
0.68
|
$
|
0.63
|
|
|
Dividends paid
per share
|
|
0.51
|
|
0.50
|
|
|
Dividend
payout ratio (1)
|
|
75.1
|
%
|
79.5
|
%
|
|
Book value per
share (end of period)
|
$
|
15.99
|
$
|
15.64
|
|
|
Tangible book
value per share (end of period) (1)
|
|
9.18
|
|
8.75
|
|
|
Stock
price:
|
|
|
|
|
|
|
High
|
|
16.68
|
|
16.95
|
|
|
Low
|
|
13.62
|
|
13.97
|
|
|
Close (end of period)
|
|
15.82
|
|
15.73
|
|
|
Common shares
(end of period) (in millions)
|
|
304.02
|
|
302.39
|
|
|
Weighted
average diluted common shares (in millions)
|
|
302.76
|
|
300.09
|
|
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
(2)
Annualized.
|
|
|
|
|
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|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
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|
|
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|
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|
|
|
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|
|
|
|
|
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As of and for the
Three Months Ended
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
40,692
|
$
|
40,150
|
$
|
39,264
|
$
|
38,947
|
$
|
37,507
|
|
Loans
|
|
29,368
|
|
29,038
|
|
28,511
|
|
28,411
|
|
27,672
|
|
Securities
|
|
7,046
|
|
6,785
|
|
6,732
|
|
6,449
|
|
5,921
|
|
Short-term investments
|
|
373
|
|
364
|
|
251
|
|
380
|
|
245
|
|
Allowance for loan losses
|
|
226
|
|
220
|
|
216
|
|
211
|
|
208
|
|
Goodwill and other acquisition-related intangible assets
|
|
2,070
|
|
2,076
|
|
2,079
|
|
2,088
|
|
2,085
|
|
Deposits
|
|
29,656
|
|
28,999
|
|
29,105
|
|
28,417
|
|
28,280
|
|
Borrowings
|
|
4,437
|
|
4,563
|
|
3,717
|
|
4,307
|
|
2,997
|
|
Notes and debentures
|
|
1,054
|
|
1,058
|
|
1,050
|
|
1,033
|
|
1,039
|
|
Stockholders' equity
|
|
4,862
|
|
4,830
|
|
4,791
|
|
4,732
|
|
4,731
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
30,451
|
|
30,267
|
|
29,832
|
|
29,646
|
|
28,990
|
|
People's United
Bank, N.A.
|
|
30,415
|
|
30,232
|
|
29,826
|
|
29,621
|
|
28,953
|
|
Non-performing assets (2)
|
|
180
|
|
182
|
|
189
|
|
182
|
|
210
|
|
Net loan charge-offs
|
|
2.5
|
|
5.1
|
|
6.0
|
|
6.2
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
29,107
|
$
|
28,558
|
$
|
28,159
|
$
|
27,853
|
$
|
27,496
|
|
Securities (3)
|
|
6,873
|
|
6,699
|
|
6,498
|
|
6,133
|
|
5,880
|
|
Short-term investments
|
|
361
|
|
298
|
|
348
|
|
247
|
|
245
|
|
Total earning assets
|
|
36,341
|
|
35,555
|
|
35,005
|
|
34,233
|
|
33,621
|
|
Total assets
|
|
40,304
|
|
39,422
|
|
38,773
|
|
37,955
|
|
37,284
|
|
Deposits
|
|
29,437
|
|
29,079
|
|
28,721
|
|
28,481
|
|
27,810
|
|
Borrowings
|
|
4,296
|
|
3,895
|
|
3,664
|
|
3,187
|
|
3,304
|
|
Notes and debentures
|
|
1,056
|
|
1,049
|
|
1,044
|
|
1,037
|
|
1,028
|
|
Total funding liabilities
|
|
34,789
|
|
34,023
|
|
33,429
|
|
32,705
|
|
32,142
|
|
Stockholders' equity
|
|
4,841
|
|
4,795
|
|
4,761
|
|
4,736
|
|
4,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
|
0.04
|
%
|
0.07
|
%
|
0.09
|
%
|
0.09
|
%
|
0.06
|
%
|
Non-performing assets to originated loans,
|
|
|
|
|
|
|
|
|
|
|
|
real estate owned and
repossessed assets (2)
|
|
0.63
|
|
0.64
|
|
0.68
|
|
0.66
|
|
0.78
|
|
Originated allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
(2)
|
|
0.76
|
|
0.75
|
|
0.75
|
|
0.73
|
|
0.74
|
|
Originated
non-performing loans (2)
|
|
142.0
|
|
135.3
|
|
123.3
|
|
127.3
|
|
108.1
|
|
Average stockholders' equity to average total assets
|
|
12.0
|
|
12.2
|
|
12.3
|
|
12.5
|
|
12.6
|
|
Stockholders' equity to total assets
|
|
11.9
|
|
12.0
|
|
12.2
|
|
12.2
|
|
12.6
|
|
Tangible stockholders' equity to tangible assets (4)
|
|
7.2
|
|
7.2
|
|
7.3
|
|
7.2
|
|
7.5
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
11.5
|
|
11.5
|
|
11.5
|
|
11.7
|
|
11.8
|
|
People's United
Bank, N.A.
|
|
12.8
|
|
12.8
|
|
12.9
|
|
12.6
|
|
12.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) September 30,
2016 amounts and ratios are preliminary.
|
|
|
|
|
|
|
|
|
|
|
(2) Excludes acquired
loans.
|
|
|
|
|
|
|
|
|
|
|
|
(3) Average balances
for securities are based on amortized cost.
|
|
|
|
|
|
|
|
|
|
(4) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CONDITION
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
June 30,
|
Dec. 31,
|
Sept. 30,
|
(in
millions)
|
2016
|
2016
|
2015
|
2015
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
347.5
|
$
343.9
|
$
334.8
|
$
300.3
|
Short-term
investments
|
372.8
|
363.9
|
380.5
|
244.6
|
Total cash and cash equivalents
|
720.3
|
707.8
|
715.3
|
544.9
|
Securities:
|
|
|
|
|
Trading
account securities, at fair value
|
6.8
|
6.8
|
6.7
|
8.3
|
Securities
available for sale, at fair value
|
4,906.5
|
4,711.8
|
4,527.7
|
4,221.2
|
Securities
held to maturity, at amortized cost
|
1,817.5
|
1,749.4
|
1,609.6
|
1,377.1
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
315.5
|
317.4
|
305.4
|
314.7
|
Total securities
|
7,046.3
|
6,785.4
|
6,449.4
|
5,921.3
|
Loans held for
sale
|
46.5
|
61.4
|
34.5
|
36.2
|
Loans:
|
|
|
|
|
Commercial
real estate
|
10,001.7
|
10,011.3
|
10,028.8
|
9,785.4
|
Commercial and
industrial
|
8,201.2
|
8,066.1
|
7,748.7
|
7,492.2
|
Equipment
financing (1)
|
2,987.6
|
3,005.9
|
2,973.3
|
2,821.1
|
Residential
mortgage
|
6,028.0
|
5,789.0
|
5,457.0
|
5,381.4
|
Consumer
|
2,149.3
|
2,166.0
|
2,203.1
|
2,192.1
|
Total loans
|
29,367.8
|
29,038.3
|
28,410.9
|
27,672.2
|
Less allowance
for loan losses
|
(226.3)
|
(220.4)
|
(211.0)
|
(207.5)
|
Total loans, net
|
29,141.5
|
28,817.9
|
28,199.9
|
27,464.7
|
Goodwill and other
acquisition-related intangible assets
|
2,070.3
|
2,076.1
|
2,087.8
|
2,084.7
|
Bank-owned life
insurance
|
347.8
|
346.8
|
346.5
|
345.6
|
Premises and
equipment
|
245.1
|
249.5
|
257.8
|
258.7
|
Other
assets
|
1,074.3
|
1,105.1
|
855.5
|
851.3
|
Total assets
|
$ 40,692.1
|
$ 40,150.0
|
$ 38,946.7
|
$ 37,507.4
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
6,521.8
|
$
6,226.8
|
$
6,178.6
|
$
5,877.2
|
Savings
|
4,391.4
|
4,474.2
|
4,199.9
|
4,170.6
|
Interest-bearing checking and money market
|
14,055.5
|
13,566.0
|
13,220.8
|
13,066.0
|
Time
|
4,686.8
|
4,732.1
|
4,818.1
|
5,165.9
|
Total deposits
|
29,655.5
|
28,999.1
|
28,417.4
|
28,279.7
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
3,261.8
|
3,562.4
|
3,463.8
|
2,164.5
|
Federal funds
purchased
|
844.0
|
680.0
|
374.0
|
360.0
|
Customer
repurchase agreements
|
330.7
|
320.8
|
469.5
|
472.3
|
Total borrowings
|
4,436.5
|
4,563.2
|
4,307.3
|
2,996.8
|
Notes and
debentures
|
1,053.9
|
1,058.2
|
1,033.1
|
1,039.1
|
Other
liabilities
|
683.9
|
699.8
|
457.3
|
461.0
|
Total liabilities
|
35,829.8
|
35,320.3
|
34,215.1
|
32,776.6
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common
stock
|
4.0
|
3.9
|
3.9
|
3.9
|
Additional paid-in
capital
|
5,359.8
|
5,350.4
|
5,337.7
|
5,327.3
|
Retained
earnings
|
927.3
|
905.8
|
880.8
|
861.0
|
Accumulated other
comprehensive loss
|
(120.4)
|
(120.3)
|
(177.2)
|
(146.1)
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(146.4)
|
(148.1)
|
(151.8)
|
(153.6)
|
Treasury stock, at
cost
|
(1,162.0)
|
(1,162.0)
|
(1,161.8)
|
(1,161.7)
|
Total stockholders' equity
|
4,862.3
|
4,829.7
|
4,731.6
|
4,730.8
|
Total liabilities and stockholders' equity
|
$ 40,692.1
|
$ 40,150.0
|
$ 38,946.7
|
$ 37,507.4
|
|
|
|
|
|
(1) Represents loans
and leases held by People's Capital and Leasing Corp. and People's
United Equipment Finance Corp.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
(in millions, except
per share data)
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
85.7
|
|
$
85.3
|
|
$
86.8
|
|
$
86.1
|
|
$
85.7
|
|
|
Commercial and
industrial
|
66.9
|
|
62.8
|
|
60.3
|
|
59.6
|
|
59.3
|
|
|
Equipment
financing (1)
|
32.8
|
|
33.0
|
|
33.3
|
|
33.1
|
|
33.2
|
|
|
Residential
mortgage
|
45.7
|
|
43.8
|
|
43.9
|
|
43.0
|
|
41.9
|
|
|
Consumer
|
18.4
|
|
18.4
|
|
18.6
|
|
18.1
|
|
18.1
|
|
|
Total interest on loans
|
249.5
|
|
243.3
|
|
242.9
|
|
239.9
|
|
238.2
|
|
|
Securities
|
34.2
|
|
34.7
|
|
34.5
|
|
33.8
|
|
31.2
|
|
|
Loans held for
sale
|
0.4
|
|
0.2
|
|
0.2
|
|
0.3
|
|
0.4
|
|
|
Short-term
investments
|
0.4
|
|
0.3
|
|
0.4
|
|
0.2
|
|
0.1
|
|
|
Total interest and dividend income
|
284.5
|
|
278.5
|
|
278.0
|
|
274.2
|
|
269.9
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
25.2
|
|
25.4
|
|
25.2
|
|
24.6
|
|
24.8
|
|
|
Borrowings
|
6.1
|
|
5.3
|
|
5.0
|
|
3.3
|
|
2.9
|
|
|
Notes and
debentures
|
7.9
|
|
7.8
|
|
7.7
|
|
7.5
|
|
7.4
|
|
|
Total interest expense
|
39.2
|
|
38.5
|
|
37.9
|
|
35.4
|
|
35.1
|
|
|
Net interest income
|
245.3
|
|
240.0
|
|
240.1
|
|
238.8
|
|
234.8
|
|
|
Provision for loan
losses
|
8.4
|
|
10.0
|
|
10.5
|
|
9.7
|
|
6.2
|
|
|
Net interest income after provision for loan losses
|
236.9
|
|
230.0
|
|
229.6
|
|
229.1
|
|
228.6
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
25.3
|
|
24.7
|
|
23.8
|
|
25.0
|
|
26.1
|
|
|
Investment
management fees
|
11.6
|
|
11.4
|
|
11.1
|
|
10.8
|
|
10.8
|
|
|
Operating
lease income
|
11.2
|
|
10.1
|
|
10.4
|
|
10.5
|
|
10.5
|
|
|
Insurance
revenue
|
9.8
|
|
7.0
|
|
9.3
|
|
7.5
|
|
9.1
|
|
|
Commercial
banking lending fees
|
7.1
|
|
9.2
|
|
8.1
|
|
9.2
|
|
10.3
|
|
|
Cash
management fees
|
6.5
|
|
6.3
|
|
6.0
|
|
6.1
|
|
6.4
|
|
|
Customer
interest rate swap income, net
|
3.7
|
|
3.6
|
|
3.3
|
|
3.6
|
|
3.4
|
|
|
Brokerage
commissions
|
3.2
|
|
3.2
|
|
3.0
|
|
3.1
|
|
3.1
|
|
|
Net gains on
sales of residential mortgage loans
|
1.9
|
|
0.9
|
|
0.9
|
|
1.3
|
|
1.5
|
|
|
Bank-owned
life insurance
|
1.2
|
|
2.0
|
|
1.0
|
|
1.0
|
|
1.1
|
|
|
Gain on sale
of business, net of expenses
|
-
|
|
-
|
|
-
|
|
9.2
|
|
-
|
|
|
Other
non-interest income
|
9.3
|
|
7.0
|
|
5.4
|
|
6.0
|
|
4.8
|
|
|
Total non-interest income (2)
|
90.8
|
|
85.4
|
|
82.3
|
|
93.3
|
|
87.1
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
116.1
|
|
111.4
|
|
114.1
|
|
112.0
|
|
113.4
|
|
|
Occupancy and
equipment
|
37.7
|
|
37.4
|
|
37.5
|
|
37.0
|
|
37.0
|
|
|
Professional
and outside services
|
17.7
|
|
16.4
|
|
17.4
|
|
17.9
|
|
17.0
|
|
|
Regulatory
assessments
|
9.9
|
|
9.2
|
|
8.0
|
|
7.1
|
|
9.5
|
|
|
Operating
lease expense
|
9.7
|
|
9.1
|
|
9.2
|
|
9.4
|
|
9.2
|
|
|
Amortization
of other acquisition-related intangible assets
|
5.8
|
|
5.8
|
|
5.8
|
|
6.1
|
|
5.9
|
|
|
Other
non-interest expense
|
24.5
|
|
23.6
|
|
25.3
|
|
27.5
|
|
22.2
|
|
|
Total non-interest expense (2)
|
221.4
|
|
212.9
|
|
217.3
|
|
217.0
|
|
214.2
|
|
|
Income before income tax expense
|
106.3
|
|
102.5
|
|
94.6
|
|
105.4
|
|
101.5
|
|
|
Income tax
expense
|
32.6
|
|
34.0
|
|
31.7
|
|
34.6
|
|
33.1
|
|
|
Net income
|
$
73.7
|
|
$
68.5
|
|
$
62.9
|
|
$
70.8
|
|
$
68.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
0.24
|
|
$
0.23
|
|
$
0.21
|
|
$
0.23
|
|
$
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents loans
and leases held by People's Capital and Leasing Corp. and People's
United Equipment Finance Corp.
|
(2) Total
non-interest income includes $9.2 million of non-operating income
for the three months ended December 31, 2015.
|
Total non-interest
expense includes $3.1 million, $3.8 million and $0.1 million of
non-operating expenses for the
|
|
|
three months ended
September 30, 2016, December 31, 2015 and September 30, 2015,
respectively. See Non-GAAP
|
Financial Measures and
Reconciliation to GAAP.
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
(in millions, except
per share data)
|
2016
|
|
2015
|
|
Interest and
dividend income:
|
|
|
|
|
Commercial
real estate
|
$
257.8
|
|
$
257.4
|
|
Commercial and
industrial
|
190.0
|
|
175.2
|
|
Equipment
financing (1)
|
99.1
|
|
96.5
|
|
Residential
mortgage
|
133.4
|
|
122.4
|
|
Consumer
|
55.4
|
|
54.2
|
|
Total interest on loans
|
735.7
|
|
705.7
|
|
Securities
|
103.4
|
|
87.7
|
|
Loans held for
sale
|
0.8
|
|
1.0
|
|
Short-term
investments
|
1.1
|
|
0.3
|
|
Total interest and dividend income
|
841.0
|
|
794.7
|
|
Interest
expense:
|
|
|
|
|
Deposits
|
75.8
|
|
70.9
|
|
Borrowings
|
16.4
|
|
8.2
|
|
Notes and
debentures
|
23.4
|
|
22.3
|
|
Total interest expense
|
115.6
|
|
101.4
|
|
Net interest income
|
725.4
|
|
693.3
|
|
Provision for loan
losses
|
28.9
|
|
23.7
|
|
Net interest income after provision for loan losses
|
696.5
|
|
669.6
|
|
Non-interest
income:
|
|
|
|
|
Bank service
charges
|
73.8
|
|
75.6
|
|
Investment
management fees
|
34.1
|
|
32.9
|
|
Operating
lease income
|
31.7
|
|
31.8
|
|
Insurance
revenue
|
26.1
|
|
23.2
|
|
Commercial
banking lending fees
|
24.4
|
|
33.4
|
|
Cash
management fees
|
18.8
|
|
18.4
|
|
Customer
interest rate swap income, net
|
10.6
|
|
10.9
|
|
Brokerage
commissions
|
9.4
|
|
9.5
|
|
Bank-owned
life insurance
|
4.2
|
|
3.6
|
|
Net gains on
sales of residential mortgage loans
|
3.7
|
|
4.2
|
|
Net gains on
sales of acquired loans
|
-
|
|
1.7
|
|
Other
non-interest income
|
21.7
|
|
13.9
|
|
Total non-interest income
|
258.5
|
|
259.1
|
|
Non-interest
expense:
|
|
|
|
|
Compensation
and benefits
|
341.6
|
|
337.5
|
|
Occupancy and
equipment
|
112.6
|
|
112.5
|
|
Professional
and outside services
|
51.5
|
|
50.1
|
|
Operating
lease expense
|
28.0
|
|
27.7
|
|
Regulatory
assessments
|
27.1
|
|
28.0
|
|
Amortization
of other acquisition-related intangible assets
|
17.4
|
|
17.8
|
|
Other
non-interest expense
|
73.4
|
|
70.0
|
|
Total non-interest expense (2)
|
651.6
|
|
643.6
|
|
Income before income tax expense
|
303.4
|
|
285.1
|
|
Income tax
expense
|
98.3
|
|
95.8
|
|
Net income
|
$
205.1
|
|
$
189.3
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
0.68
|
|
$
0.63
|
|
|
|
|
|
|
(1) Represents loans
and leases held by People's Capital and Leasing Corp. and People's
United
|
|
Equipment Finance
Corp.
|
|
|
|
|
(2) Total
non-interest expense includes $3.1 million and $9.1 million of
non-operating expenses for the
|
nine months ended
September 30, 2016 and 2015, respectively. See Non-GAAP
Financial
|
|
Measures and
Reconciliation to GAAP.
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
Three months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
361.0
|
$
0.4
|
0.47%
|
|
$
297.8
|
$
0.3
|
0.42%
|
|
$
245.3
|
$
0.1
|
0.19%
|
Securities
(2)
|
6,872.5
|
38.9
|
2.26
|
|
6,698.7
|
39.2
|
2.34
|
|
5,879.9
|
34.8
|
2.37
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
9,978.8
|
85.7
|
3.44
|
|
9,997.0
|
85.3
|
3.41
|
|
9,688.4
|
85.7
|
3.54
|
Commercial and
industrial
|
8,053.2
|
71.1
|
3.53
|
|
7,727.8
|
66.0
|
3.42
|
|
7,518.0
|
62.1
|
3.30
|
Equipment
financing
|
2,984.7
|
32.8
|
4.39
|
|
2,981.4
|
33.0
|
4.43
|
|
2,809.7
|
33.1
|
4.72
|
Residential
mortgage
|
5,935.3
|
46.1
|
3.11
|
|
5,679.9
|
44.0
|
3.10
|
|
5,293.2
|
42.3
|
3.20
|
Consumer
|
2,155.4
|
18.4
|
3.41
|
|
2,172.5
|
18.4
|
3.38
|
|
2,186.9
|
18.1
|
3.30
|
Total loans
|
29,107.4
|
254.1
|
3.49
|
|
28,558.6
|
246.7
|
3.46
|
|
27,496.2
|
241.3
|
3.51
|
Total earning assets
|
36,340.9
|
$293.4
|
3.23%
|
|
35,555.1
|
$286.2
|
3.22%
|
|
33,621.4
|
$276.2
|
3.29%
|
Other
assets
|
3,963.1
|
|
|
|
3,866.9
|
|
|
|
3,662.9
|
|
|
Total assets
|
$ 40,304.0
|
|
|
|
$ 39,422.0
|
|
|
|
$ 37,284.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
6,325.3
|
$
-
|
- %
|
|
$
6,098.3
|
$
-
|
- %
|
|
$
5,853.7
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
18,356.6
|
13.3
|
0.29
|
|
18,151.0
|
12.9
|
0.28
|
|
16,634.9
|
11.1
|
0.27
|
Time
|
4,755.1
|
11.9
|
1.00
|
|
4,830.1
|
12.5
|
1.04
|
|
5,321.6
|
13.7
|
1.03
|
Total deposits
|
29,437.0
|
25.2
|
0.34
|
|
29,079.4
|
25.4
|
0.35
|
|
27,810.2
|
24.8
|
0.36
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
3,306.7
|
5.1
|
0.62
|
|
3,157.8
|
4.7
|
0.59
|
|
2,444.2
|
2.5
|
0.41
|
Federal funds
purchased
|
674.1
|
0.9
|
0.51
|
|
421.5
|
0.5
|
0.48
|
|
378.4
|
0.2
|
0.19
|
Customer
repurchase agreements
|
314.8
|
0.1
|
0.19
|
|
315.9
|
0.1
|
0.19
|
|
481.1
|
0.2
|
0.19
|
Other
borrowings
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
0.5
|
0.2
|
1.75
|
Total borrowings
|
4,295.6
|
6.1
|
0.57
|
|
3,895.2
|
5.3
|
0.55
|
|
3,304.2
|
3.1
|
0.35
|
Notes and
debentures
|
1,056.4
|
7.9
|
2.97
|
|
1,048.8
|
7.8
|
2.98
|
|
1,028.2
|
7.4
|
2.90
|
Total funding liabilities
|
34,789.0
|
$
39.2
|
0.45%
|
|
34,023.4
|
$
38.5
|
0.45%
|
|
32,142.6
|
$
35.3
|
0.44%
|
Other
liabilities
|
674.5
|
|
|
|
603.3
|
|
|
|
441.2
|
|
|
Total liabilities
|
35,463.5
|
|
|
|
34,626.7
|
|
|
|
32,583.8
|
|
|
Stockholders'
equity
|
4,840.5
|
|
|
|
4,795.3
|
|
|
|
4,700.5
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 40,304.0
|
|
|
|
$ 39,422.0
|
|
|
|
$ 37,284.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$254.2
|
2.78%
|
|
|
$247.7
|
2.77%
|
|
|
$240.9
|
2.85%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.80%
|
|
|
|
2.79%
|
|
|
|
2.87%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average yields
earned and rates paid are annualized.
|
|
|
|
|
|
|
|
|
|
(2) Average balances
and yields for securities are based on amortized cost.
|
|
|
|
|
|
|
(3) The fully taxable
equivalent adjustment was $8.9 million, $7.7 million and $6.3
million for the three months ended September 30,
2016,
|
June 30, 2016 and
September 30, 2015, respectively.
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
Nine months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
335.7
|
$
1.1
|
0.46%
|
|
$
248.1
|
$
0.3
|
0.20%
|
|
Securities
(2)
|
6,690.4
|
116.7
|
2.33
|
|
5,596.1
|
98.0
|
2.33
|
|
Loans:
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
9,991.1
|
257.8
|
3.44
|
|
9,553.9
|
257.4
|
3.59
|
|
Commercial and
industrial
|
7,754.1
|
200.6
|
3.45
|
|
7,334.7
|
183.6
|
3.34
|
|
Equipment
financing
|
2,972.7
|
99.1
|
4.44
|
|
2,817.3
|
96.5
|
4.57
|
|
Residential
mortgage
|
5,719.3
|
134.2
|
3.13
|
|
5,148.9
|
123.4
|
3.20
|
|
Consumer
|
2,173.1
|
55.4
|
3.40
|
|
2,190.6
|
54.2
|
3.29
|
|
Total loans
|
28,610.3
|
747.1
|
3.48
|
|
27,045.4
|
715.1
|
3.53
|
|
Total earning assets
|
35,636.4
|
$864.9
|
3.24%
|
|
32,889.6
|
$813.4
|
3.30%
|
|
Other
assets
|
3,866.2
|
|
|
|
3,690.8
|
|
|
|
Total assets
|
$ 39,502.6
|
|
|
|
$ 36,580.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
6,139.3
|
$
-
|
- %
|
|
$
5,718.5
|
$
-
|
- %
|
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
and money market
|
18,138.6
|
38.9
|
0.29
|
|
16,164.3
|
32.0
|
0.26
|
|
Time
|
4,802.7
|
36.9
|
1.02
|
|
5,330.3
|
38.9
|
0.97
|
|
Total deposits
|
29,080.6
|
75.8
|
0.35
|
|
27,213.1
|
70.9
|
0.35
|
|
Borrowings:
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
3,115.5
|
14.1
|
0.61
|
|
2,290.7
|
7.0
|
0.41
|
|
Federal funds
purchased
|
497.2
|
1.8
|
0.45
|
|
415.2
|
0.5
|
0.18
|
|
Customer
repurchase agreements
|
340.0
|
0.5
|
0.19
|
|
473.3
|
0.7
|
0.19
|
|
Other
borrowings
|
-
|
-
|
-
|
|
0.8
|
-
|
1.75
|
|
Total borrowings
|
3,952.7
|
16.4
|
0.55
|
|
3,180.0
|
8.2
|
0.34
|
|
Notes and
debentures
|
1,049.7
|
23.4
|
2.97
|
|
1,032.0
|
22.3
|
2.88
|
|
Total funding liabilities
|
34,083.0
|
$115.6
|
0.45%
|
|
31,425.1
|
$101.4
|
0.43%
|
|
Other
liabilities
|
620.6
|
|
|
|
471.1
|
|
|
|
Total liabilities
|
34,703.6
|
|
|
|
31,896.2
|
|
|
|
Stockholders'
equity
|
4,799.0
|
|
|
|
4,684.2
|
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 39,502.6
|
|
|
|
$ 36,580.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$749.3
|
2.79%
|
|
|
$712.0
|
2.87%
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.80%
|
|
|
|
2.89%
|
|
|
|
|
|
|
|
|
|
|
(1) Average yields
earned and rates paid are annualized.
|
|
|
|
|
|
|
(2) Average balances
and yields for securities are based on amortized cost.
|
|
|
|
(3) The fully taxable
equivalent adjustment was $23.9 million and $18.7 million for the
nine months ended
|
September 30, 2016 and
2015, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment
financing
|
$
|
46.0
|
$
|
40.0
|
$
|
41.1
|
$
|
27.5
|
$
|
29.4
|
|
|
Commercial and
industrial
|
|
40.0
|
|
34.7
|
|
41.5
|
|
44.9
|
|
62.9
|
|
|
Commercial
real estate
|
|
23.4
|
|
35.4
|
|
35.9
|
|
30.2
|
|
31.8
|
|
|
Total
|
|
109.4
|
|
110.1
|
|
118.5
|
|
102.6
|
|
124.1
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
28.2
|
|
29.9
|
|
31.1
|
|
37.2
|
|
38.2
|
|
|
Home
equity
|
|
16.5
|
|
17.4
|
|
18.9
|
|
19.5
|
|
21.0
|
|
|
Other
consumer
|
|
-
|
|
-
|
|
-
|
|
0.1
|
|
-
|
|
|
Total
|
|
44.7
|
|
47.3
|
|
50.0
|
|
56.8
|
|
59.2
|
|
|
Total originated non-performing loans (1)
|
|
154.1
|
|
157.4
|
|
168.5
|
|
159.4
|
|
183.3
|
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
11.2
|
|
3.3
|
|
5.4
|
|
5.5
|
|
8.2
|
|
|
Residential
|
|
7.9
|
|
9.7
|
|
8.2
|
|
7.1
|
|
10.8
|
|
|
Total REO
|
|
19.1
|
|
13.0
|
|
13.6
|
|
12.6
|
|
19.0
|
|
|
Repossessed
assets
|
|
6.9
|
|
11.6
|
|
7.3
|
|
9.5
|
|
7.3
|
|
|
Total non-performing assets
|
$
|
180.1
|
$
|
182.0
|
$
|
189.4
|
$
|
181.5
|
$
|
209.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount) (2)
|
$
|
24.6
|
$
|
25.5
|
$
|
27.4
|
$
|
30.0
|
$
|
38.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.54
|
%
|
0.56
|
%
|
0.61
|
%
|
0.58
|
%
|
0.68
|
%
|
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
|
0.63
|
|
0.64
|
|
0.68
|
|
0.66
|
|
0.78
|
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
5.98
|
|
6.14
|
|
6.49
|
|
6.38
|
|
7.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $13.0 million at September 30, 2016,
$15.8 million at June 30, 2016,
|
|
$16.2 million at March 31,
2016, $16.9 million at December 31, 2015 and $17.3 million at
September 30, 2015.
|
|
|
(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
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
|
213.0
|
$
|
207.6
|
$
|
202.9
|
$
|
198.1
|
$
|
195.1
|
|
Charge-offs
|
|
(3.8)
|
|
(6.1)
|
|
(7.4)
|
|
(7.8)
|
|
(6.1)
|
|
Recoveries
|
|
1.4
|
|
1.0
|
|
1.7
|
|
1.6
|
|
2.0
|
|
Net loan charge-offs
|
|
(2.4)
|
|
(5.1)
|
|
(5.7)
|
|
(6.2)
|
|
(4.1)
|
|
Provision for
loan losses
|
|
8.4
|
|
10.5
|
|
10.4
|
|
11.0
|
|
7.1
|
|
Balance at end of period
|
|
219.0
|
|
213.0
|
|
207.6
|
|
202.9
|
|
198.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
7.4
|
|
7.9
|
|
8.1
|
|
9.4
|
|
10.3
|
|
Charge-offs
|
|
(0.1)
|
|
-
|
|
(0.3)
|
|
-
|
|
-
|
|
Provision for
loan losses
|
|
-
|
|
(0.5)
|
|
0.1
|
|
(1.3)
|
|
(0.9)
|
|
Balance at end of period
|
|
7.3
|
|
7.4
|
|
7.9
|
|
8.1
|
|
9.4
|
|
Total allowance for loan losses
|
$
|
226.3
|
$
|
220.4
|
$
|
215.5
|
$
|
211.0
|
$
|
207.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial originated
allowance for loan loss
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
0.94
|
%
|
0.92
|
%
|
0.92
|
%
|
0.90
|
%
|
0.91
|
%
|
Retail originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated retail loans
|
|
0.30
|
|
0.30
|
|
0.30
|
|
0.28
|
|
0.28
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
|
|
0.76
|
|
0.75
|
|
0.75
|
|
0.73
|
|
0.74
|
|
Originated non-performing loans
|
|
142.0
|
|
135.3
|
|
123.3
|
|
127.3
|
|
108.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Equipment
financing
|
$
|
1.3
|
$
|
2.1
|
$
|
1.6
|
$
|
1.4
|
$
|
1.0
|
|
Commercial and
industrial
|
|
0.4
|
|
1.1
|
|
2.2
|
|
3.5
|
|
1.4
|
|
Commercial
real estate
|
|
0.2
|
|
(0.1)
|
|
0.7
|
|
(0.1)
|
|
0.5
|
|
Total
|
|
1.9
|
|
3.1
|
|
4.5
|
|
4.8
|
|
2.9
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
0.4
|
|
0.7
|
|
-
|
|
0.1
|
|
0.4
|
|
Home
equity
|
|
0.1
|
|
1.2
|
|
1.4
|
|
1.1
|
|
0.6
|
|
Other
consumer
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.2
|
|
0.2
|
|
Total
|
|
0.6
|
|
2.0
|
|
1.5
|
|
1.4
|
|
1.2
|
|
Total net loan charge-offs
|
$
|
2.5
|
$
|
5.1
|
$
|
6.0
|
$
|
6.2
|
$
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.04
|
%
|
0.07
|
%
|
0.09
|
%
|
0.09
|
%
|
0.06
|
%
|
People's United
Financial, Inc.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP
|
|
|
In
addition to evaluating People's United Financial Inc. ("People's
United") results of operations in accordance with
U.S. generally accepted accounting
principles ("GAAP"), management routinely supplements its
evaluation with an analysis of
certain non-GAAP financial measures, such as the efficiency and
tangible 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'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's capital position.
|
|
The efficiency ratio, which represents an approximate measure of
the cost required by People's United 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, which are also excluded in arriving at operating non-interest
expense) (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
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'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 and related lease
termination costs; (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. Effective
with the quarter ended March 31, 2016, recurring writedowns of
banking house assets and certain
severance-related costs are no longer considered to be
non-operating expenses. 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 for determining the non-GAAP financial measures discussed
above may differ from those used by other financial
institutions.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFICIENCY RATIO
AND OPERATING NON-INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2016
|
|
2015
|
|
Total non-interest
expense
|
|
$
221.4
|
|
$
212.9
|
|
$
217.3
|
|
$
217.0
|
|
$
214.2
|
|
$
651.6
|
|
$
643.6
|
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(3.1)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3.1)
|
|
-
|
|
Writedowns of
banking house assets
|
|
-
|
|
-
|
|
-
|
|
(2.5)
|
|
-
|
|
-
|
|
(8.0)
|
|
Severance-related costs
|
|
-
|
|
-
|
|
-
|
|
(1.3)
|
|
(0.1)
|
|
-
|
|
(1.1)
|
|
Total
|
|
(3.1)
|
|
n/a
|
|
n/a
|
|
(3.8)
|
|
(0.1)
|
|
(3.1)
|
|
(9.1)
|
|
Operating non-interest expense
|
|
218.3
|
|
n/a
|
|
n/a
|
|
213.2
|
|
214.1
|
|
648.5
|
|
634.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense (1)
|
|
(9.7)
|
|
(9.1)
|
|
(9.2)
|
|
(9.4)
|
|
(9.2)
|
|
(28.0)
|
|
(27.7)
|
|
Amortization of other
acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(5.8)
|
|
(5.8)
|
|
(5.8)
|
|
(6.1)
|
|
(5.9)
|
|
(17.4)
|
|
(17.8)
|
|
Other (2)
|
|
(1.8)
|
|
(1.8)
|
|
(1.5)
|
|
(2.2)
|
|
(1.8)
|
|
(5.1)
|
|
(5.6)
|
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
201.0
|
|
$
196.2
|
|
$
200.8
|
|
$
195.5
|
|
$
197.2
|
|
$
598.0
|
|
$
583.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
254.2
|
|
$
247.7
|
|
$
247.4
|
|
$
245.3
|
|
$
241.1
|
|
$
749.3
|
|
$
712.0
|
|
Total non-interest
income
|
|
90.8
|
|
85.4
|
|
82.3
|
|
93.3
|
|
87.1
|
|
258.5
|
|
259.1
|
|
Total revenues
|
|
345.0
|
|
333.1
|
|
329.7
|
|
338.6
|
|
328.2
|
|
1,007.8
|
|
971.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense (1)
|
|
(9.7)
|
|
(9.1)
|
|
(9.2)
|
|
(9.4)
|
|
(9.2)
|
|
(28.0)
|
|
(27.7)
|
|
BOLI FTE
adjustment
|
|
0.6
|
|
1.0
|
|
0.5
|
|
0.5
|
|
0.6
|
|
2.1
|
|
1.9
|
|
Net security
gains
|
|
-
|
|
-
|
|
(0.1)
|
|
-
|
|
-
|
|
(0.1)
|
|
-
|
|
Gain on sale
of business, net of expenses
|
-
|
|
-
|
|
-
|
|
(9.2)
|
|
-
|
|
-
|
|
-
|
|
Other
(3)
|
|
(0.3)
|
|
-
|
|
(0.7)
|
|
-
|
|
(0.1)
|
|
(1.0)
|
|
(0.1)
|
|
Total revenues for efficiency ratio
|
|
$
335.6
|
|
$
325.0
|
|
$
320.2
|
|
$
320.5
|
|
$
319.5
|
|
$
980.8
|
|
$
945.2
|
|
Efficiency ratio
|
|
59.9%
|
|
60.4%
|
|
62.7%
|
|
61.0%
|
|
61.7%
|
|
61.0%
|
|
61.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a For the
three months ended June 30, 2016 and March 31, 2016, no expenses
were considered to be non-operating
|
|
|
expenses.
Accordingly, operating metrics were not applicable.
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in millions,
except per share data)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2016
|
|
2015
|
Net income, as
reported
|
|
$
73.7
|
|
$
68.5
|
|
$
62.9
|
|
$
70.8
|
|
$
68.4
|
|
$
205.1
|
|
$
189.3
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
3.1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3.1
|
|
-
|
Writedowns of
banking house assets
|
|
-
|
|
-
|
|
-
|
|
2.5
|
|
-
|
|
-
|
|
8.0
|
Severance-related costs
|
|
-
|
|
-
|
|
-
|
|
1.3
|
|
0.1
|
|
-
|
|
1.1
|
Gain on sale
of business, net of expenses
|
-
|
|
-
|
|
-
|
|
(9.2)
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
3.1
|
|
n/a
|
|
n/a
|
|
(5.4)
|
|
0.1
|
|
3.1
|
|
9.1
|
Tax effect
|
|
(1.0)
|
|
n/a
|
|
n/a
|
|
1.8
|
|
(0.1)
|
|
(1.0)
|
|
(3.1)
|
Total adjustments, net of tax
|
|
2.1
|
|
n/a
|
|
n/a
|
|
(3.6)
|
|
-
|
|
2.1
|
|
6.0
|
Operating earnings
|
|
$
75.8
|
|
n/a
|
|
n/a
|
|
$
67.2
|
|
$
68.4
|
|
$
207.2
|
|
$
195.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
as reported
|
|
$
0.24
|
|
$
0.23
|
|
$
0.21
|
|
$
0.23
|
|
$
0.23
|
|
$
0.68
|
|
$
0.63
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.01
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.01
|
|
-
|
Writedowns of
banking house assets
|
|
-
|
|
-
|
|
-
|
|
0.01
|
|
-
|
|
-
|
|
0.02
|
Severance-related costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Gain on sale
of business, net of expenses
|
-
|
|
-
|
|
-
|
|
(0.02)
|
|
-
|
|
-
|
|
-
|
Total adjustments per share
|
|
0.01
|
|
n/a
|
|
n/a
|
|
(0.01)
|
|
-
|
|
0.01
|
|
0.02
|
Operating earnings per share
|
|
$
0.25
|
|
n/a
|
|
n/a
|
|
$
0.22
|
|
$
0.23
|
|
$
0.69
|
|
$
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$40,304
|
|
$39,422
|
|
$38,773
|
|
$37,955
|
|
$37,284
|
|
$39,503
|
|
$36,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average assets
(annualized)
|
|
0.75%
|
|
n/a
|
|
n/a
|
|
0.71%
|
|
0.73%
|
|
0.70%
|
|
0.71%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2016
|
|
2015
|
Operating
earnings
|
|
$
75.8
|
|
n/a
|
|
n/a
|
|
$
67.2
|
|
$
68.4
|
|
$
207.2
|
|
$
195.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
4,841
|
|
$
4,795
|
|
$
4,761
|
|
$
4,736
|
|
$
4,700
|
|
$
4,799
|
|
$
4,684
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,073
|
|
2,079
|
|
2,085
|
|
2,092
|
|
2,088
|
|
2,079
|
|
2,094
|
Average tangible
stockholders' equity
|
|
$
2,768
|
|
$
2,716
|
|
$
2,676
|
|
$
2,644
|
|
$
2,612
|
|
$
2,720
|
|
$
2,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on
average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity (annualized)
|
|
11.0%
|
|
n/a
|
|
n/a
|
|
10.2%
|
|
10.5%
|
|
10.2%
|
|
10.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING DIVIDEND
PAYOUT RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2016
|
|
2015
|
Dividends
paid
|
|
$
51.7
|
|
$
51.7
|
|
$
50.6
|
|
$
50.6
|
|
$
50.6
|
|
$
154.0
|
|
$
150.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
$
75.8
|
|
n/a
|
|
n/a
|
|
$
67.2
|
|
$
68.4
|
|
$
207.2
|
|
$
195.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating dividend
payout ratio
|
|
68.2%
|
|
n/a
|
|
n/a
|
|
75.3%
|
|
73.9%
|
|
74.3%
|
|
77.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a For the
three months ended June 30, 2016 and March 31, 2016, no expenses
were considered to be non-operating
|
|
expenses.
Accordingly, operating metrics were not applicable.
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - continued
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE EQUITY
RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
Total stockholders'
equity
|
|
$
4,862
|
|
$
4,830
|
|
$
4,791
|
|
$
4,732
|
|
$
4,731
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,070
|
|
2,076
|
|
2,079
|
|
2,088
|
|
2,085
|
Tangible
stockholders' equity
|
|
$
2,792
|
|
$
2,754
|
|
$
2,712
|
|
$
2,644
|
|
$
2,646
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$40,692
|
|
$40,150
|
|
$39,264
|
|
$38,947
|
|
$37,507
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,070
|
|
2,076
|
|
2,079
|
|
2,088
|
|
2,085
|
Tangible
assets
|
|
$38,622
|
|
$38,074
|
|
$37,185
|
|
$36,859
|
|
$35,422
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity
ratio
|
|
7.2%
|
|
7.2%
|
|
7.3%
|
|
7.2%
|
|
7.5%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
(in millions, except
per share data)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
Tangible
stockholders' equity
|
|
$
2,792
|
|
$
2,754
|
|
$
2,712
|
|
$
2,644
|
|
$
2,646
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
400.13
|
|
399.74
|
|
399.54
|
|
399.24
|
|
398.84
|
Less: Shares
classified as treasury shares
|
|
89.05
|
|
89.05
|
|
89.04
|
|
89.06
|
|
89.05
|
Unallocated ESOP shares
|
|
7.06
|
|
7.14
|
|
7.23
|
|
7.32
|
|
7.40
|
Common
shares
|
|
304.02
|
|
303.55
|
|
303.27
|
|
302.86
|
|
302.39
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per share
|
|
$
9.18
|
|
$
9.07
|
|
$
8.94
|
|
$
8.73
|
|
$
8.75
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-third-quarter-net-income-of-737-million-or-024-per-share-300348552.html
SOURCE People's United Financial, Inc.