BRIDGEPORT, Conn., Jan. 19, 2017 /PRNewswire/ -- People's
United Financial, Inc. (NASDAQ: PBCT) today reported net income of
$75.9 million, or $0.24 per common share, for the fourth quarter of
2016, compared to $70.8 million, or
$0.23 per common share, for the
fourth quarter of 2015, and $73.7
million, or $0.24 per common
share, for the third quarter of 2016.
Included in this quarter's results were merger-related and
acquisition integration costs of $1.6
million ($1.0 million
after-tax), or less than $0.01 per
common share, compared to $3.1
million ($2.1 million
after-tax), or $0.01 per common
share, for the third quarter of 2016. Fourth quarter 2015 results
included a gain of $9.2 million
($6.1 million after-tax), or
$0.02 per common share, resulting
from the sale of the Company's payroll services business.
For the year ended December 31,
2016, net income totaled $281.0
million, or $0.92 per common
share, compared to $260.1 million, or
$0.86 per common share, for 2015.
The Company's Board of Directors declared a $0.17 per share quarterly dividend, payable
February 15, 2017 to shareholders of
record on February 1, 2017.
Based on the closing stock price on January
18, 2017, the dividend yield on People's United Financial
common stock is 3.5 percent.
"We are pleased with the Company's financial and operating
performance this year," commented Jack
Barnes, President and Chief Executive Officer. "Full year
net income of $281 million is the
highest in the Company's history and return on average tangible
common equity was 10.2 percent. Our straightforward,
solutions-oriented approach to banking enabled us to further expand
client relationships and forge new ones as demonstrated by another
year of growth in loans, deposits and wealth management assets. We
continued to improve operating leverage during the year through
revenue growth as well as proactive expense management which has
limited the increase in expenses to an average annual rate of less
than one percent over the last five years."
Barnes continued, "We strengthened fee income generating
capabilities over the course of the year through infrastructure
investments and acquisitions, most notably the addition of
Gerstein Fisher which closed in
early November. We also continued to strategically add talent
across the organization to further drive revenue growth. Earlier in
the year, we announced the acquisition of Suffolk Bancorp which
upon closing will deepen our presence in the New York metro area."
Barnes concluded, "We continually strive to balance and utilize
six levers to create shareholder value: enhancing client-focused
capabilities, growing the balance sheet, maintaining excellent
asset quality, diversifying revenues, controlling costs and
deploying capital efficiently. As such, we enter 2017
well-positioned across our diverse portfolio of businesses and
attractive Northeast footprint to further deliver exceptional
service to clients and profitable growth to shareholders."
"Our fourth quarter performance provided a strong finish to the
year as evidenced by record quarterly net income of $75.9 million and a return on average tangible
common equity of 10.7 percent," stated David Rosato, Senior Executive Vice President
and Chief Financial Officer. "Net income increased seven percent
from the prior year quarter due to higher net interest income and
continued expense control. As a result, the efficiency ratio was
59.3 percent, an improvement of 170 basis points from a year
ago."
Rosato concluded, "Loans grew five percent on an annualized
basis, marking the 25th consecutive quarter of growth.
The increase was driven by strong results in commercial real estate
and residential mortgage, partially offset by lower mortgage
warehouse lending balances. We maintained excellent asset quality
across each portfolio, reflected by net charge-offs as a percentage
of average loans of only six basis points for the quarter. Deposit
growth was three percent annualized, while the overall cost of
deposits remained consistent with the third quarter. Furthermore,
we issued $250 million of preferred
stock which enhanced our already strong capital position."
At December 31, 2016, People's
United Financial's common equity tier 1 capital and total
risk-based capital ratios were 9.9 percent and 12.5 percent,
respectively, and the tangible common 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 11.3 percent and
13.4 percent, respectively, at December 31,
2016.
Net loan charge-offs as a percentage of average total loans on
an annualized basis were 0.06 percent in the fourth quarter of
2016, a slight increase from 0.04 percent in the third quarter of
2016, but lower than 0.09 percent in the fourth quarter of
2015. For the originated loan portfolio, non-performing loans
equaled 0.51 percent of loans at December
31, 2016, a decrease from 0.54 percent at September 30, 2016 and 0.58 percent at
December 31, 2015.
Return on average assets of 0.75 percent for the fourth quarter
of 2016 was an increase from 0.73 percent in the third quarter of
2016 and unchanged from the fourth quarter of 2015. Return on
average tangible common equity of 10.7 percent in the fourth
quarter of 2016 was unchanged from both the third quarter of 2016
and fourth 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.
4Q 2016 Financial Highlights
Summary
- Net income totaled $75.9 million,
or $0.24 per common share.
- Net income available to common shareholders totaled
$74.1 million.
- Operating earnings totaled $75.1
million, or $0.24 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $246.8
million in 4Q16 compared to $245.3
million in 3Q16.
- Net interest margin decreased two basis points from 3Q16 to
2.78% reflecting:
- Higher yield on the securities portfolio (increase of two basis
points).
- New loan volume at rates lower than the existing portfolio
(decrease of three basis points).
- Higher rate on borrowings (decrease of one basis point).
- Provision for loan losses totaled $7.7
million.
- Net loan charge-offs totaled $4.7
million.
- Net loan charge-off ratio of 0.06% in 4Q16.
- Non-interest income was $84.2
million in 4Q16 compared to $90.8
million in 3Q16.
- Investment management fees increased $2.6 million, primarily reflecting the benefit
from the addition of Gerstein Fisher
in early November.
- Net gains on sales of residential mortgages increased
$0.7 million.
- Recorded a $6.3 million gain in
4Q16 (included in other non-interest income) from the sale of an
ownership interest in a legacy privately-held investment.
- Insurance revenue decreased $3.0
million, reflecting the seasonal nature of commercial
insurance renewals.
- Operating lease income decreased $1.7
million.
- Bank service charges decreased $1.1
million.
- Net security losses in 4Q16 totaled $6.0
million.
- At December 31, 2016, assets
under administration, which are not reported as assets of People's
United Financial, totaled $21.3
billion, of which $8.0 billion
are under discretionary management, compared to $18.2 billion and $5.7
billion, respectively, at September
30, 2016.
- Non-interest expense totaled $217.2
million in 4Q16 compared to $221.4
million in 3Q16.
- Operating non-interest expense totaled $215.6 million in 4Q16 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $0.7 million of acquisition integration costs in
4Q16, decreased $2.8 million,
primarily reflecting lower payroll and benefit-related costs in
4Q16.
- Professional and outside services expense, excluding
$0.9 million and $3.1 million of merger-related expenses in 4Q16
and 3Q16, respectively, increased $0.8
million.
- Regulatory assessments expense increased $0.5 million.
- The efficiency ratio was 59.3% in 4Q16 compared to 59.9% in
3Q16 (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- The effective income tax rate was 28.5% for 4Q16 and 31.4% for
the full-year of 2016, compared to 33.4% for the full-year of 2015
(32.8% for 4Q15).
- The lower full-year rate reflects an increase in tax advantaged
investments as well as the effects of certain tax planning
strategies.
Commercial Banking
- Commercial loans totaled $21.4
billion at December 31, 2016,
an increase of $214 million, or 4%
annualized, from September 30, 2016.
- The mortgage warehouse portfolio decreased $107 million from September 30, 2016.
- Average commercial loans totaled $21.1
billion in 4Q16, a $57 million
increase from 3Q16.
- The average mortgage warehouse portfolio decreased $18 million in 4Q16.
- Commercial deposits totaled $10.4
billion at December 31, 2016
compared to $10.3 billion at
September 30, 2016.
- The ratio of originated non-performing commercial loans to
originated commercial loans was 0.49% at December 31, 2016 compared to 0.53% at
September 30, 2016.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $114.4
million at December 31, 2016
compared to $127.4 million at
September 30, 2016.
- For the originated commercial portfolio, the allowance for loan
losses as a percentage of loans was 0.95% at December 31, 2016 compared to 0.94% at
September 30, 2016.
- The commercial originated allowance for loan losses represented
193% of originated non-performing commercial loans at December 31, 2016 compared to 178% at
September 30, 2016.
Retail Banking
- Residential mortgage loans totaled $6.2
billion at December 31, 2016,
an increase of $189 million, or 13%
annualized, from September 30, 2016.
- Average residential mortgage loans totaled $6.1 billion in 4Q16, an increase of $201 million, or 14% annualized, from 3Q16.
- Home equity loans totaled $2.1
billion at December 31, 2016,
a $27 million decrease from
September 30, 2016.
- Average home equity loans totaled $2.1
billion in 4Q16, a $21 million
decrease from 3Q16.
- Retail deposits totaled $19.5
billion at December 31, 2016
compared to $19.4 billion at
September 30, 2016.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 0.45% at
December 31, 2016 compared to 0.48%
at September 30, 2016.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.85% at December 31, 2016 compared to 0.80% at
September 30, 2016.
Conference Call
On January 19,
2017, 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
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in millions,
except per share data)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
Earnings
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
255.2
|
$
|
254.2
|
$
|
247.7
|
$
|
247.4
|
$
|
245.3
|
|
Net interest
income
|
|
246.8
|
|
245.3
|
|
240.0
|
|
240.1
|
|
238.8
|
|
Provision for
loan losses
|
|
7.7
|
|
8.4
|
|
10.0
|
|
10.5
|
|
9.7
|
|
Non-interest
income (1)
|
|
84.2
|
|
90.8
|
|
85.4
|
|
82.3
|
|
93.3
|
|
Non-interest
expense (2)
|
|
217.2
|
|
221.4
|
|
212.9
|
|
217.3
|
|
217.0
|
|
Income before
income tax expense
|
|
106.1
|
|
106.3
|
|
102.5
|
|
94.6
|
|
105.4
|
|
Net
income
|
|
75.9
|
|
73.7
|
|
68.5
|
|
62.9
|
|
70.8
|
|
Net income
available to common shareholders (2)
|
|
74.1
|
|
73.7
|
|
68.5
|
|
62.9
|
|
70.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (3)
|
|
2.78
|
%
|
2.80
|
%
|
2.79
|
%
|
2.83
|
%
|
2.87
|
%
|
Return on
average assets (2), (3)
|
|
0.75
|
|
0.73
|
|
0.70
|
|
0.65
|
|
0.75
|
|
Return on
average common equity (3)
|
|
6.1
|
|
6.1
|
|
5.7
|
|
5.3
|
|
6.0
|
|
Return on
average tangible common equity (2), (3)
|
|
10.7
|
|
10.7
|
|
10.1
|
|
9.4
|
|
10.7
|
|
Efficiency
ratio (2)
|
|
59.3
|
|
59.9
|
|
60.4
|
|
62.7
|
|
61.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings per common share (2)
|
$
|
0.24
|
$
|
0.24
|
$
|
0.23
|
$
|
0.21
|
$
|
0.23
|
|
Dividends paid
per share
|
|
0.17
|
|
0.17
|
|
0.17
|
|
0.1675
|
|
0.1675
|
|
Dividend
payout ratio (2)
|
|
69.8
|
%
|
70.1
|
%
|
75.4
|
%
|
80.6
|
%
|
71.5
|
%
|
Book value per
share (end of period)
|
$
|
15.85
|
$
|
15.99
|
$
|
15.91
|
$
|
15.80
|
$
|
15.62
|
|
Tangible book
value per share (end of period) (2)
|
|
8.92
|
|
9.18
|
|
9.07
|
|
8.94
|
|
8.73
|
|
Stock
price:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
20.13
|
|
16.40
|
|
16.68
|
|
16.27
|
|
16.93
|
|
Low
|
|
15.28
|
|
14.22
|
|
13.80
|
|
13.62
|
|
15.00
|
|
Close (end of period)
|
|
19.36
|
|
15.82
|
|
14.66
|
|
15.93
|
|
16.15
|
|
Common shares
(end of period) (in millions)
|
|
308.97
|
|
304.02
|
|
303.55
|
|
303.27
|
|
302.86
|
|
Weighted
average diluted common shares (in millions)
|
306.23
|
|
303.24
|
|
302.48
|
|
301.86
|
|
301.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
(2) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
|
|
|
(3)
Annualized.
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
December
31,
|
(dollars in millions,
except per share data)
|
|
2016
|
|
2015
|
|
Earnings
Data:
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
1,004.5
|
$
|
957.3
|
|
Net interest
income
|
|
972.2
|
|
932.1
|
|
Provision for
loan losses
|
|
36.6
|
|
33.4
|
|
Non-interest
income (1)
|
|
342.7
|
|
352.4
|
|
Non-interest
expense (2)
|
|
868.8
|
|
860.6
|
|
Income before
income tax expense
|
|
409.5
|
|
390.5
|
|
Net
income
|
|
281.0
|
|
260.1
|
|
Net income
available to common shareholders (2)
|
|
279.2
|
|
260.1
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
Net interest
margin
|
|
2.80
|
%
|
2.88
|
%
|
Return on
average assets (2)
|
|
0.71
|
|
0.71
|
|
Return on
average common equity
|
|
5.8
|
|
5.5
|
|
Return on
average tangible common equity (2)
|
|
10.2
|
|
10.0
|
|
Efficiency
ratio (2)
|
|
60.5
|
|
61.5
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
Basic and
diluted earnings per common share (2)
|
$
|
0.92
|
$
|
0.86
|
|
Dividends paid
per share
|
|
0.6775
|
|
0.6675
|
|
Dividend
payout ratio (2)
|
|
73.7
|
%
|
77.3
|
%
|
Book value per
share (end of period)
|
$
|
15.85
|
$
|
15.62
|
|
Tangible book
value per share (end of period) (2)
|
|
8.92
|
|
8.73
|
|
Stock
price:
|
|
|
|
|
|
High
|
|
20.13
|
|
16.95
|
|
Low
|
|
13.62
|
|
13.97
|
|
Close (end of period)
|
|
19.36
|
|
16.15
|
|
Common shares
(end of period) (in millions)
|
|
308.97
|
|
302.86
|
|
Weighted
average diluted common shares (in millions)
|
|
303.99
|
|
300.41
|
|
|
|
|
|
|
|
(1) Twelve 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.
|
|
|
|
(2) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
40,610
|
$
|
40,692
|
$
|
40,150
|
$
|
39,264
|
$
|
38,947
|
|
Loans
|
|
29,745
|
|
29,368
|
|
29,038
|
|
28,511
|
|
28,411
|
|
Securities
|
|
6,738
|
|
7,046
|
|
6,785
|
|
6,732
|
|
6,449
|
|
Short-term investments
|
|
182
|
|
373
|
|
364
|
|
251
|
|
380
|
|
Allowance for loan losses
|
|
229
|
|
226
|
|
220
|
|
216
|
|
211
|
|
Goodwill and other acquisition-related intangible assets
|
|
2,142
|
|
2,070
|
|
2,076
|
|
2,079
|
|
2,088
|
|
Deposits
|
|
29,861
|
|
29,656
|
|
28,999
|
|
29,105
|
|
28,417
|
|
Borrowings
|
|
4,057
|
|
4,437
|
|
4,563
|
|
3,717
|
|
4,307
|
|
Notes and debentures
|
|
1,030
|
|
1,054
|
|
1,058
|
|
1,050
|
|
1,033
|
|
Stockholders' equity
|
|
5,142
|
|
4,862
|
|
4,830
|
|
4,791
|
|
4,732
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
30,508
|
|
30,451
|
|
30,267
|
|
29,832
|
|
29,646
|
|
People's United
Bank, N.A.
|
|
30,440
|
|
30,415
|
|
30,232
|
|
29,826
|
|
29,621
|
|
Non-performing assets (2)
|
|
167
|
|
180
|
|
182
|
|
189
|
|
182
|
|
Net loan charge-offs
|
|
4.7
|
|
2.5
|
|
5.1
|
|
6.0
|
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
29,346
|
$
|
29,107
|
$
|
28,558
|
$
|
28,159
|
$
|
27,853
|
|
Securities (3)
|
|
7,074
|
|
6,873
|
|
6,699
|
|
6,498
|
|
6,133
|
|
Short-term investments
|
|
308
|
|
361
|
|
298
|
|
348
|
|
247
|
|
Total earning assets
|
|
36,728
|
|
36,341
|
|
35,555
|
|
35,005
|
|
34,233
|
|
Total assets
|
|
40,623
|
|
40,304
|
|
39,422
|
|
38,773
|
|
37,955
|
|
Deposits
|
|
29,773
|
|
29,437
|
|
29,079
|
|
28,721
|
|
28,481
|
|
Borrowings
|
|
4,148
|
|
4,296
|
|
3,895
|
|
3,664
|
|
3,187
|
|
Notes and debentures
|
|
1,045
|
|
1,056
|
|
1,049
|
|
1,044
|
|
1,037
|
|
Total funding liabilities
|
|
34,966
|
|
34,789
|
|
34,023
|
|
33,429
|
|
32,705
|
|
Stockholders' equity
|
|
5,039
|
|
4,841
|
|
4,795
|
|
4,761
|
|
4,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
|
0.06
|
%
|
0.04
|
%
|
0.07
|
%
|
0.09
|
%
|
0.09
|
%
|
Non-performing assets to originated loans,
|
|
|
|
|
|
|
|
|
|
|
|
real estate owned and
repossessed assets (2)
|
|
0.57
|
|
0.63
|
|
0.64
|
|
0.68
|
|
0.66
|
|
Originated allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
(2)
|
|
0.77
|
|
0.76
|
|
0.75
|
|
0.75
|
|
0.73
|
|
Originated
non-performing loans (2)
|
|
150.6
|
|
142.0
|
|
135.3
|
|
123.3
|
|
127.3
|
|
Average stockholders' equity to average total assets
|
|
12.4
|
|
12.0
|
|
12.2
|
|
12.3
|
|
12.5
|
|
Stockholders' equity to total assets
|
|
12.7
|
|
11.9
|
|
12.0
|
|
12.2
|
|
12.2
|
|
Tangible common equity to tangible assets (4)
|
|
7.2
|
|
7.2
|
|
7.2
|
|
7.3
|
|
7.2
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.5
|
|
11.5
|
|
11.5
|
|
11.5
|
|
11.7
|
|
People's United
Bank, N.A.
|
|
13.4
|
|
12.8
|
|
12.8
|
|
12.9
|
|
12.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) December 31, 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
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
Dec. 31,
|
(in
millions)
|
2016
|
2016
|
2016
|
2015
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
432.4
|
$
347.5
|
$
343.9
|
$
334.8
|
Short-term
investments
|
181.7
|
372.8
|
363.9
|
380.5
|
Total cash and cash equivalents
|
614.1
|
720.3
|
707.8
|
715.3
|
Securities:
|
|
|
|
|
Trading
account securities, at fair value
|
6.8
|
6.8
|
6.8
|
6.7
|
Securities
available for sale, at fair value
|
4,409.9
|
4,906.5
|
4,711.8
|
4,527.7
|
Securities
held to maturity, at amortized cost
|
2,005.4
|
1,817.5
|
1,749.4
|
1,609.6
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
315.8
|
315.5
|
317.4
|
305.4
|
Total securities
|
6,737.9
|
7,046.3
|
6,785.4
|
6,449.4
|
Loans held for
sale
|
39.3
|
46.5
|
61.4
|
34.5
|
Loans:
|
|
|
|
|
Commercial
real estate
|
10,247.3
|
10,001.7
|
10,011.3
|
10,028.8
|
Commercial and
industrial
|
8,125.1
|
8,201.2
|
8,066.1
|
7,748.7
|
Equipment
financing (1)
|
3,032.5
|
2,987.6
|
3,005.9
|
2,973.3
|
Total Commercial Portfolio
|
21,404.9
|
21,190.5
|
21,083.3
|
20,750.8
|
Residential
mortgage
|
6,216.7
|
6,028.0
|
5,789.0
|
5,457.0
|
Home equity
and other consumer
|
2,123.3
|
2,149.3
|
2,166.0
|
2,203.1
|
Total Retail Portfolio
|
8,340.0
|
8,177.3
|
7,955.0
|
7,660.1
|
Total loans
|
29,744.9
|
29,367.8
|
29,038.3
|
28,410.9
|
Less allowance
for loan losses
|
(229.3)
|
(226.3)
|
(220.4)
|
(211.0)
|
Total loans, net
|
29,515.6
|
29,141.5
|
28,817.9
|
28,199.9
|
Goodwill and other
acquisition-related intangible assets
|
2,142.0
|
2,070.3
|
2,076.1
|
2,087.8
|
Bank-owned life
insurance
|
349.1
|
347.8
|
346.8
|
346.5
|
Premises and
equipment
|
244.5
|
245.1
|
249.5
|
257.8
|
Other
assets
|
967.3
|
1,074.3
|
1,105.1
|
855.5
|
Total assets
|
$ 40,609.8
|
$ 40,692.1
|
$ 40,150.0
|
$ 38,946.7
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
6,660.8
|
$
6,521.8
|
$
6,226.8
|
$
6,178.6
|
Savings
|
4,397.7
|
4,391.4
|
4,474.2
|
4,199.9
|
Interest-bearing checking and money market
|
14,260.1
|
14,055.5
|
13,566.0
|
13,220.8
|
Time
|
4,542.2
|
4,686.8
|
4,732.1
|
4,818.1
|
Total deposits
|
29,860.8
|
29,655.5
|
28,999.1
|
28,417.4
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
3,061.1
|
3,261.8
|
3,562.4
|
3,463.8
|
Federal funds
purchased and other borrowings
|
652.4
|
844.0
|
680.0
|
374.0
|
Customer
repurchase agreements
|
343.3
|
330.7
|
320.8
|
469.5
|
Total borrowings
|
4,056.8
|
4,436.5
|
4,563.2
|
4,307.3
|
Notes and
debentures
|
1,030.1
|
1,053.9
|
1,058.2
|
1,033.1
|
Other
liabilities
|
520.2
|
683.9
|
699.8
|
457.3
|
Total liabilities
|
35,467.9
|
35,829.8
|
35,320.3
|
34,215.1
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
-
|
-
|
-
|
Common
stock
|
4.0
|
4.0
|
3.9
|
3.9
|
Additional paid-in
capital
|
5,446.1
|
5,359.8
|
5,350.4
|
5,337.7
|
Retained
earnings
|
949.3
|
927.3
|
905.8
|
880.8
|
Accumulated other
comprehensive loss
|
(195.0)
|
(120.4)
|
(120.3)
|
(177.2)
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(144.6)
|
(146.4)
|
(148.1)
|
(151.8)
|
Treasury stock, at
cost
|
(1,162.0)
|
(1,162.0)
|
(1,162.0)
|
(1,161.8)
|
Total stockholders' equity
|
5,141.9
|
4,862.3
|
4,829.7
|
4,731.6
|
Total liabilities and stockholders' equity
|
$ 40,609.8
|
$ 40,692.1
|
$ 40,150.0
|
$ 38,946.7
|
|
|
|
|
|
(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
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
(in millions, except
per share data)
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
86.8
|
|
$
85.7
|
|
$
85.3
|
|
$
86.8
|
|
$
86.1
|
Commercial and
industrial
|
65.0
|
|
66.9
|
|
62.8
|
|
60.3
|
|
59.6
|
Equipment
financing (1)
|
31.8
|
|
32.8
|
|
33.0
|
|
33.3
|
|
33.1
|
Residential
mortgage
|
47.0
|
|
45.7
|
|
43.8
|
|
43.9
|
|
43.0
|
Consumer
|
18.1
|
|
18.4
|
|
18.4
|
|
18.6
|
|
18.1
|
Total interest on loans
|
248.7
|
|
249.5
|
|
243.3
|
|
242.9
|
|
239.9
|
Securities
|
36.9
|
|
34.2
|
|
34.7
|
|
34.5
|
|
33.8
|
Loans held for
sale
|
0.3
|
|
0.4
|
|
0.2
|
|
0.2
|
|
0.3
|
Short-term
investments
|
0.4
|
|
0.4
|
|
0.3
|
|
0.4
|
|
0.2
|
Total interest and dividend income
|
286.3
|
|
284.5
|
|
278.5
|
|
278.0
|
|
274.2
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
25.1
|
|
25.2
|
|
25.4
|
|
25.2
|
|
24.6
|
Borrowings
|
6.4
|
|
6.1
|
|
5.3
|
|
5.0
|
|
3.3
|
Notes and
debentures
|
8.0
|
|
7.9
|
|
7.8
|
|
7.7
|
|
7.5
|
Total interest expense
|
39.5
|
|
39.2
|
|
38.5
|
|
37.9
|
|
35.4
|
Net interest income
|
246.8
|
|
245.3
|
|
240.0
|
|
240.1
|
|
238.8
|
Provision for loan
losses
|
7.7
|
|
8.4
|
|
10.0
|
|
10.5
|
|
9.7
|
Net interest income after provision for loan losses
|
239.1
|
|
236.9
|
|
230.0
|
|
229.6
|
|
229.1
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
24.2
|
|
25.3
|
|
24.7
|
|
23.8
|
|
25.0
|
Investment
management fees
|
14.2
|
|
11.6
|
|
11.4
|
|
11.1
|
|
10.8
|
Operating
lease income
|
9.5
|
|
11.2
|
|
10.1
|
|
10.4
|
|
10.5
|
Commercial
banking lending fees
|
7.2
|
|
7.1
|
|
9.2
|
|
8.1
|
|
9.2
|
Insurance
revenue
|
6.8
|
|
9.8
|
|
7.0
|
|
9.3
|
|
7.5
|
Cash
management fees
|
6.2
|
|
6.5
|
|
6.3
|
|
6.0
|
|
6.1
|
Customer
interest rate swap income, net
|
3.8
|
|
3.7
|
|
3.6
|
|
3.3
|
|
3.6
|
Brokerage
commissions
|
2.8
|
|
3.2
|
|
3.2
|
|
3.0
|
|
3.1
|
Net gains on
sales of residential mortgage loans
|
2.6
|
|
1.9
|
|
0.9
|
|
0.9
|
|
1.3
|
Bank-owned
life insurance
|
1.5
|
|
1.2
|
|
2.0
|
|
1.0
|
|
1.0
|
Net security
(losses) gains
|
(6.0)
|
|
-
|
|
-
|
|
0.1
|
|
-
|
Gain on sale
of business, net of expenses
|
-
|
|
-
|
|
-
|
|
-
|
|
9.2
|
Other
non-interest income
|
11.4
|
|
9.3
|
|
7.0
|
|
5.3
|
|
6.0
|
Total non-interest income (2)
|
84.2
|
|
90.8
|
|
85.4
|
|
82.3
|
|
93.3
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
114.0
|
|
116.1
|
|
111.4
|
|
114.1
|
|
112.0
|
Occupancy and
equipment
|
37.8
|
|
37.7
|
|
37.4
|
|
37.5
|
|
37.0
|
Professional
and outside services
|
16.3
|
|
17.7
|
|
16.4
|
|
17.4
|
|
17.9
|
Regulatory
assessments
|
10.4
|
|
9.9
|
|
9.2
|
|
8.0
|
|
7.1
|
Operating
lease expense
|
8.3
|
|
9.7
|
|
9.1
|
|
9.2
|
|
9.4
|
Amortization
of other acquisition-related intangible assets
|
6.2
|
|
5.8
|
|
5.8
|
|
5.8
|
|
6.1
|
Other
non-interest expense
|
24.2
|
|
24.5
|
|
23.6
|
|
25.3
|
|
27.5
|
Total non-interest expense (2)
|
217.2
|
|
221.4
|
|
212.9
|
|
217.3
|
|
217.0
|
Income before income tax expense
|
106.1
|
|
106.3
|
|
102.5
|
|
94.6
|
|
105.4
|
Income tax
expense
|
30.2
|
|
32.6
|
|
34.0
|
|
31.7
|
|
34.6
|
Net income
|
75.9
|
|
73.7
|
|
68.5
|
|
62.9
|
|
70.8
|
Preferred stock
dividend
|
1.8
|
|
-
|
|
-
|
|
-
|
|
-
|
Net income available to common shareholders
|
$
74.1
|
|
$
73.7
|
|
$
68.5
|
|
$
62.9
|
|
$
70.8
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
0.24
|
|
$
0.24
|
|
$
0.23
|
|
$
0.21
|
|
$
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 $1.6 million, $3.1 million and $3.8 million of
non-operating expenses for the three
|
months ended December 31,
2016, September 30, 2016 and December 31, 2015, respectively. See
Non-GAAP Financial
|
Measures and Reconciliation
to GAAP.
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
December
31,
|
(in millions, except
per share data)
|
2016
|
|
2015
|
Interest and
dividend income:
|
|
|
|
Commercial
real estate
|
$
344.6
|
|
$
343.5
|
Commercial and
industrial
|
255.0
|
|
234.8
|
Equipment
financing (1)
|
130.9
|
|
129.6
|
Residential
mortgage
|
180.4
|
|
165.4
|
Consumer
|
73.5
|
|
72.3
|
Total interest on loans
|
984.4
|
|
945.6
|
Securities
|
140.3
|
|
121.5
|
Loans held for
sale
|
1.1
|
|
1.3
|
Short-term
investments
|
1.5
|
|
0.5
|
Total interest and dividend income
|
1,127.3
|
|
1,068.9
|
Interest
expense:
|
|
|
|
Deposits
|
100.9
|
|
95.5
|
Borrowings
|
22.8
|
|
11.5
|
Notes and
debentures
|
31.4
|
|
29.8
|
Total interest expense
|
155.1
|
|
136.8
|
Net interest income
|
972.2
|
|
932.1
|
Provision for loan
losses
|
36.6
|
|
33.4
|
Net interest income after provision for loan losses
|
935.6
|
|
898.7
|
Non-interest
income:
|
|
|
|
Bank service
charges
|
98.0
|
|
100.7
|
Investment
management fees
|
48.3
|
|
43.7
|
Operating
lease income
|
41.2
|
|
42.3
|
Insurance
revenue
|
32.9
|
|
30.7
|
Commercial
banking lending fees
|
31.6
|
|
42.6
|
Cash
management fees
|
25.0
|
|
24.5
|
Customer
interest rate swap income, net
|
14.4
|
|
14.5
|
Brokerage
commissions
|
12.2
|
|
12.6
|
Net gains on
sales of residential mortgage loans
|
6.3
|
|
5.5
|
Bank-owned
life insurance
|
5.7
|
|
4.6
|
Net security
losses
|
(5.9)
|
|
-
|
Gain on sale
of business, net of expenses
|
-
|
|
9.2
|
Net gains on
sales of acquired loans
|
-
|
|
1.7
|
Other
non-interest income
|
33.0
|
|
19.8
|
Total non-interest income (2)
|
342.7
|
|
352.4
|
Non-interest
expense:
|
|
|
|
Compensation
and benefits
|
455.6
|
|
449.5
|
Occupancy and
equipment
|
150.4
|
|
149.5
|
Professional
and outside services
|
67.8
|
|
68.0
|
Regulatory
assessments
|
37.5
|
|
35.1
|
Operating
lease expense
|
36.3
|
|
37.1
|
Amortization
of other acquisition-related intangible assets
|
23.6
|
|
23.9
|
Other
non-interest expense
|
97.6
|
|
97.5
|
Total non-interest expense (2)
|
868.8
|
|
860.6
|
Income before income tax expense
|
409.5
|
|
390.5
|
Income tax
expense
|
128.5
|
|
130.4
|
Net income
|
281.0
|
|
260.1
|
Preferred stock
dividend
|
1.8
|
|
-
|
Net income available to common shareholders
|
$
279.2
|
|
$
260.1
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
0.92
|
|
$
0.86
|
|
|
|
|
(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 twelve months
|
ended December 31, 2015.
Total non-interest expense includes $4.7 million and $12.9 million
of
|
non-operating expenses for
the twelve months ended December 31, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
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
|
$
307.9
|
$
0.4
|
0.44%
|
|
$
361.0
|
$
0.4
|
0.47%
|
|
$
247.1
|
$
0.2
|
0.21%
|
Securities
(2)
|
7,073.5
|
42.1
|
2.38
|
|
6,872.5
|
38.9
|
2.26
|
|
6,133.1
|
37.7
|
2.46
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
10,079.4
|
86.8
|
3.44
|
|
9,978.8
|
85.7
|
3.44
|
|
9,911.1
|
86.1
|
3.48
|
Commercial and
industrial
|
8,023.3
|
68.2
|
3.40
|
|
8,053.2
|
71.1
|
3.53
|
|
7,426.5
|
62.2
|
3.35
|
Equipment
financing
|
2,971.4
|
31.8
|
4.29
|
|
2,984.7
|
32.8
|
4.39
|
|
2,874.3
|
33.1
|
4.61
|
Residential
mortgage
|
6,136.2
|
47.3
|
3.09
|
|
5,935.3
|
46.1
|
3.11
|
|
5,440.6
|
43.3
|
3.17
|
Home equity
and other consumer
|
2,135.9
|
18.1
|
3.39
|
|
2,155.4
|
18.4
|
3.41
|
|
2,200.7
|
18.1
|
3.31
|
Total loans
|
29,346.2
|
252.2
|
3.44
|
|
29,107.4
|
254.1
|
3.49
|
|
27,853.2
|
242.8
|
3.49
|
Total earning assets
|
36,727.6
|
$294.7
|
3.21%
|
|
36,340.9
|
$293.4
|
3.23%
|
|
34,233.4
|
$280.7
|
3.28%
|
Other
assets
|
3,895.4
|
|
|
|
3,963.1
|
|
|
|
3,721.8
|
|
|
Total assets
|
$ 40,623.0
|
|
|
|
$ 40,304.0
|
|
|
|
$ 37,955.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
6,524.5
|
$
-
|
- %
|
|
$
6,325.3
|
$
-
|
- %
|
|
$
6,049.3
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
18,614.5
|
14.1
|
0.30
|
|
18,356.6
|
13.3
|
0.29
|
|
17,453.7
|
11.6
|
0.27
|
Time
|
4,634.4
|
11.0
|
0.95
|
|
4,755.1
|
11.9
|
1.00
|
|
4,977.6
|
13.0
|
1.05
|
Total deposits
|
29,773.4
|
25.1
|
0.34
|
|
29,437.0
|
25.2
|
0.34
|
|
28,480.6
|
24.6
|
0.35
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
3,028.8
|
5.1
|
0.67
|
|
3,306.7
|
5.1
|
0.62
|
|
2,353.8
|
2.8
|
0.47
|
Federal funds
purchased and
|
|
|
|
|
|
|
|
|
|
|
|
other borrowings
|
790.3
|
1.1
|
0.54
|
|
674.1
|
0.9
|
0.51
|
|
398.5
|
0.3
|
0.23
|
Customer
repurchase agreements
|
328.8
|
0.2
|
0.20
|
|
314.8
|
0.1
|
0.19
|
|
434.9
|
0.2
|
0.20
|
Total borrowings
|
4,147.9
|
6.4
|
0.61
|
|
4,295.6
|
6.1
|
0.57
|
|
3,187.2
|
3.3
|
0.40
|
Notes and
debentures
|
1,045.0
|
8.0
|
3.08
|
|
1,056.4
|
7.9
|
2.97
|
|
1,037.6
|
7.5
|
2.90
|
Total funding liabilities
|
34,966.3
|
$
39.5
|
0.45%
|
|
34,789.0
|
$
39.2
|
0.45%
|
|
32,705.4
|
$
35.4
|
0.43%
|
Other
liabilities
|
617.4
|
|
|
|
674.5
|
|
|
|
513.8
|
|
|
Total liabilities
|
35,583.7
|
|
|
|
35,463.5
|
|
|
|
33,219.2
|
|
|
Stockholders'
equity
|
5,039.3
|
|
|
|
4,840.5
|
|
|
|
4,736.0
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 40,623.0
|
|
|
|
$ 40,304.0
|
|
|
|
$ 37,955.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$255.2
|
2.76%
|
|
|
$254.2
|
2.78%
|
|
|
$245.3
|
2.85%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.78%
|
|
|
|
2.80%
|
|
|
|
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 $8.4 million, $8.9 million and $6.5
million for the three months ended December 31,
2016,
|
September 30, 2016 and
December 31, 2015, respectively.
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
Twelve months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
328.7
|
$
1.5
|
0.45%
|
|
$
247.8
|
$
0.5
|
0.20%
|
Securities
(1)
|
6,786.7
|
158.8
|
2.34
|
|
5,731.5
|
135.7
|
2.37
|
Loans:
|
|
|
|
|
|
|
|
Commercial
real estate
|
10,013.3
|
344.6
|
3.44
|
|
9,643.9
|
343.5
|
3.56
|
Commercial and
industrial
|
7,821.8
|
268.8
|
3.44
|
|
7,357.8
|
245.8
|
3.34
|
Equipment
financing
|
2,972.3
|
130.9
|
4.40
|
|
2,831.7
|
129.6
|
4.58
|
Residential
mortgage
|
5,824.1
|
181.5
|
3.12
|
|
5,222.4
|
166.7
|
3.19
|
Home equity
and other consumer
|
2,163.8
|
73.5
|
3.40
|
|
2,193.1
|
72.3
|
3.30
|
Total loans
|
28,795.3
|
999.3
|
3.47
|
|
27,248.9
|
957.9
|
3.52
|
Total earning assets
|
35,910.7
|
$
1,159.6
|
3.23%
|
|
33,228.2
|
$
1,094.1
|
3.29%
|
Other
assets
|
3,873.6
|
|
|
|
3,698.7
|
|
|
Total assets
|
$ 39,784.3
|
|
|
|
$ 36,926.9
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
6,236.1
|
$
-
|
- %
|
|
$
5,801.9
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
and money market
|
18,258.2
|
53.0
|
0.29
|
|
16,489.3
|
43.5
|
0.26
|
Time
|
4,760.4
|
47.9
|
1.01
|
|
5,241.4
|
52.0
|
0.99
|
Total deposits
|
29,254.7
|
100.9
|
0.34
|
|
27,532.6
|
95.5
|
0.35
|
Borrowings:
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
3,093.7
|
19.2
|
0.62
|
|
2,306.6
|
9.8
|
0.42
|
Federal funds
purchased and other borrowings
|
570.9
|
2.9
|
0.50
|
|
464.2
|
0.9
|
0.19
|
Customer
repurchase agreements
|
337.2
|
0.7
|
0.19
|
|
411.0
|
0.8
|
0.19
|
Total borrowings
|
4,001.8
|
22.8
|
0.57
|
|
3,181.8
|
11.5
|
0.34
|
Notes and
debentures
|
1,048.5
|
31.4
|
3.00
|
|
1,033.4
|
29.8
|
2.88
|
Total funding liabilities
|
34,305.0
|
$
155.1
|
0.45%
|
|
31,747.8
|
$
136.8
|
0.43%
|
Other
liabilities
|
619.9
|
|
|
|
481.8
|
|
|
Total liabilities
|
34,924.9
|
|
|
|
32,229.6
|
|
|
Stockholders'
equity
|
4,859.4
|
|
|
|
4,697.3
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 39,784.3
|
|
|
|
$ 36,926.9
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (2)
|
|
$
1,004.5
|
2.78%
|
|
|
$
957.3
|
2.86%
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.80%
|
|
|
|
2.88%
|
|
|
|
|
|
|
|
|
(1) Average balances
and yields for securities are based on amortized cost.
|
|
|
|
|
(2) The fully taxable
equivalent adjustment was $32.3 million and $25.2 million for the
years ended
|
|
December 31, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
22.3
|
$
|
23.4
|
$
|
35.4
|
$
|
35.9
|
$
|
30.2
|
|
Commercial and
industrial
|
|
41.5
|
|
40.0
|
|
34.7
|
|
41.5
|
|
44.9
|
|
Equipment
financing
|
|
39.4
|
|
46.0
|
|
40.0
|
|
41.1
|
|
27.5
|
|
Total
|
|
103.2
|
|
109.4
|
|
110.1
|
|
118.5
|
|
102.6
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
27.4
|
|
28.2
|
|
29.9
|
|
31.1
|
|
37.2
|
|
Home
equity
|
|
17.4
|
|
16.5
|
|
17.4
|
|
18.9
|
|
19.5
|
|
Other
consumer
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.1
|
|
Total
|
|
44.8
|
|
44.7
|
|
47.3
|
|
50.0
|
|
56.8
|
|
Total originated non-performing loans (1)
|
|
148.0
|
|
154.1
|
|
157.4
|
|
168.5
|
|
159.4
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
4.0
|
|
11.2
|
|
3.3
|
|
5.4
|
|
5.5
|
|
Residential
|
|
8.1
|
|
7.9
|
|
9.7
|
|
8.2
|
|
7.1
|
|
Total REO
|
|
12.1
|
|
19.1
|
|
13.0
|
|
13.6
|
|
12.6
|
|
Repossessed
assets
|
|
7.2
|
|
6.9
|
|
11.6
|
|
7.3
|
|
9.5
|
|
Total non-performing assets
|
$
|
167.3
|
$
|
180.1
|
$
|
182.0
|
$
|
189.4
|
$
|
181.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount) (2)
|
$
|
24.7
|
$
|
24.6
|
$
|
25.5
|
$
|
27.4
|
$
|
30.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.51
|
%
|
0.54
|
%
|
0.56
|
%
|
0.61
|
%
|
0.58
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
|
0.57
|
|
0.63
|
|
0.64
|
|
0.68
|
|
0.66
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
5.19
|
|
5.98
|
|
6.14
|
|
6.49
|
|
6.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $13.1 million at December 31, 2016,
$13.0 million at September 30, 2016,
|
$15.8 million at June 30,
2016, $16.2 million at March 31, 2016 and $16.9 million at December
31, 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
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
|
219.0
|
$
|
213.0
|
$
|
207.6
|
$
|
202.9
|
$
|
198.1
|
|
Charge-offs
|
|
(4.7)
|
|
(3.8)
|
|
(6.1)
|
|
(7.4)
|
|
(7.8)
|
|
Recoveries
|
|
1.0
|
|
1.4
|
|
1.0
|
|
1.7
|
|
1.6
|
|
Net loan charge-offs
|
|
(3.7)
|
|
(2.4)
|
|
(5.1)
|
|
(5.7)
|
|
(6.2)
|
|
Provision for
loan losses
|
|
7.7
|
|
8.4
|
|
10.5
|
|
10.4
|
|
11.0
|
|
Balance at end of period
|
|
223.0
|
|
219.0
|
|
213.0
|
|
207.6
|
|
202.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
7.3
|
|
7.4
|
|
7.9
|
|
8.1
|
|
9.4
|
|
Charge-offs
|
|
(1.0)
|
|
(0.1)
|
|
-
|
|
(0.3)
|
|
-
|
|
Provision for
loan losses
|
|
-
|
|
-
|
|
(0.5)
|
|
0.1
|
|
(1.3)
|
|
Balance at end of period
|
|
6.3
|
|
7.3
|
|
7.4
|
|
7.9
|
|
8.1
|
|
Total allowance for loan losses
|
$
|
229.3
|
$
|
226.3
|
$
|
220.4
|
$
|
215.5
|
$
|
211.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial originated
allowance for loan loss
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
0.95
|
%
|
0.94
|
%
|
0.92
|
%
|
0.92
|
%
|
0.90
|
%
|
Retail originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated retail loans
|
|
0.30
|
|
0.30
|
|
0.30
|
|
0.30
|
|
0.28
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
|
|
0.77
|
|
0.76
|
|
0.75
|
|
0.75
|
|
0.73
|
|
Originated non-performing loans
|
|
150.6
|
|
142.0
|
|
135.3
|
|
123.3
|
|
127.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
0.9
|
$
|
0.2
|
$
|
(0.1)
|
$
|
0.7
|
$
|
(0.1)
|
|
Commercial and
industrial
|
|
1.1
|
|
0.4
|
|
1.1
|
|
2.2
|
|
3.5
|
|
Equipment
financing
|
|
1.3
|
|
1.3
|
|
2.1
|
|
1.6
|
|
1.4
|
|
Total
|
|
3.3
|
|
1.9
|
|
3.1
|
|
4.5
|
|
4.8
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
-
|
|
0.4
|
|
0.7
|
|
-
|
|
0.1
|
|
Home
equity
|
|
1.3
|
|
0.1
|
|
1.2
|
|
1.4
|
|
1.1
|
|
Other
consumer
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.2
|
|
Total
|
|
1.4
|
|
0.6
|
|
2.0
|
|
1.5
|
|
1.4
|
|
Total net loan charge-offs
|
$
|
4.7
|
$
|
2.5
|
$
|
5.1
|
$
|
6.0
|
$
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.06
|
%
|
0.04
|
%
|
0.07
|
%
|
0.09
|
%
|
0.09
|
%
|
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 common
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 common 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 operating lease expense, 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, the netting of operating lease expense and
excluding gains and losses on sales of assets other
than residential mortgage loans and acquired loans, and
non-recurring income) (the denominator). People's United 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
available to common shareholders 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) merger-related expenses, including acquisition
integration and other costs; (iii) writedowns of banking house
assets and related lease termination costs; (iv) severance-related
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 common 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) earnings per common share, as
reported. Operating return on average assets is calculated by
dividing operating earnings (annualized) by average total assets.
Operating return on average tangible common equity is calculated by
dividing operating earnings (annualized) by average tangible common
equity. The operating dividend payout ratio is calculated by
dividing dividends paid by operating earnings for the respective
period.
The tangible common equity ratio is the ratio of (i) tangible
common equity (total stockholders' equity less preferred stock,
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
common 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
|
|
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Total non-interest
expense
|
|
$
217.2
|
|
$
221.4
|
|
$
212.9
|
|
$
217.3
|
|
$
217.0
|
|
$
868.8
|
|
$
860.6
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(0.9)
|
|
(3.1)
|
|
-
|
|
-
|
|
-
|
|
(4.0)
|
|
-
|
Acquisition
integration and other costs
|
|
(0.7)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.7)
|
|
-
|
Writedowns of
banking house assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2.5)
|
|
-
|
|
(10.5)
|
Severance-related costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1.3)
|
|
-
|
|
(2.4)
|
Total
|
|
(1.6)
|
|
(3.1)
|
|
n/a
|
|
n/a
|
|
(3.8)
|
|
(4.7)
|
|
(12.9)
|
Operating non-interest expense
|
|
215.6
|
|
218.3
|
|
n/a
|
|
n/a
|
|
213.2
|
|
864.1
|
|
847.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(8.3)
|
|
(9.7)
|
|
(9.1)
|
|
(9.2)
|
|
(9.4)
|
|
(36.3)
|
|
(37.1)
|
Amortization of other
acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(6.2)
|
|
(5.8)
|
|
(5.8)
|
|
(5.8)
|
|
(6.1)
|
|
(23.6)
|
|
(23.9)
|
Other (1)
|
|
(0.6)
|
|
(1.8)
|
|
(1.8)
|
|
(1.5)
|
|
(2.2)
|
|
(5.7)
|
|
(7.8)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
200.5
|
|
$
201.0
|
|
$
196.2
|
|
$
200.8
|
|
$
195.5
|
|
$
798.5
|
|
$
778.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
255.2
|
|
$
254.2
|
|
$
247.7
|
|
$
247.4
|
|
$
245.3
|
|
$ 1,004.5
|
|
$
957.3
|
Total non-interest
income
|
|
84.2
|
|
90.8
|
|
85.4
|
|
82.3
|
|
93.3
|
|
342.7
|
|
352.4
|
Total revenues
|
|
339.4
|
|
345.0
|
|
333.1
|
|
329.7
|
|
338.6
|
|
1,347.2
|
|
1,309.7
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(8.3)
|
|
(9.7)
|
|
(9.1)
|
|
(9.2)
|
|
(9.4)
|
|
(36.3)
|
|
(37.1)
|
BOLI FTE
adjustment
|
|
0.7
|
|
0.6
|
|
1.0
|
|
0.5
|
|
0.5
|
|
2.8
|
|
2.4
|
Net security
losses (gains)
|
|
6.0
|
|
-
|
|
-
|
|
(0.1)
|
|
-
|
|
5.9
|
|
-
|
Gain on sale
of business, net of expenses
|
-
|
|
-
|
|
-
|
|
-
|
|
(9.2)
|
|
-
|
|
(9.2)
|
Other
(2)
|
|
0.2
|
|
(0.3)
|
|
-
|
|
(0.7)
|
|
-
|
|
(0.8)
|
|
(0.1)
|
Total revenues for efficiency ratio
|
|
$
338.0
|
|
$
335.6
|
|
$
325.0
|
|
$
320.2
|
|
$
320.5
|
|
$ 1,318.8
|
|
$ 1,265.7
|
Efficiency ratio
|
|
59.3%
|
|
59.9%
|
|
60.4%
|
|
62.7%
|
|
61.0%
|
|
60.5%
|
|
61.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) Items
classified as "other" and deducted from non-interest expense for
purposes of calculating the efficiency ratio
include,
|
as applicable, certain
franchise taxes, real estate owned expenses, contract termination
costs and non-recurring expenses.
|
(2) Items
classified as "other" and added to (deducted from) total revenues
for purposes of calculating the efficiency ratio
include,
|
as applicable, asset
write-offs and gains associated with the sale of branch
locations.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in millions,
except per share data)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income available
to common shareholders
|
|
$
74.1
|
|
$
73.7
|
|
$
68.5
|
|
$
62.9
|
|
$
70.8
|
|
$
279.2
|
|
$
260.1
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.9
|
|
3.1
|
|
-
|
|
-
|
|
-
|
|
4.0
|
|
-
|
Acquisition
integration and other costs
|
|
0.7
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.7
|
|
-
|
Writedowns of
banking house assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2.5
|
|
-
|
|
10.5
|
Severance-related costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1.3
|
|
-
|
|
2.4
|
Gain on sale
of business, net of expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(9.2)
|
|
-
|
|
(9.2)
|
Total pre-tax adjustments
|
|
1.6
|
|
3.1
|
|
n/a
|
|
n/a
|
|
(5.4)
|
|
4.7
|
|
3.7
|
Tax effect
|
|
(0.6)
|
|
(1.0)
|
|
n/a
|
|
n/a
|
|
1.8
|
|
(1.6)
|
|
(1.3)
|
Total adjustments, net of tax
|
|
1.0
|
|
2.1
|
|
n/a
|
|
n/a
|
|
(3.6)
|
|
3.1
|
|
2.4
|
Operating earnings
|
|
$
75.1
|
|
$
75.8
|
|
n/a
|
|
n/a
|
|
$
67.2
|
|
$
282.3
|
|
$
262.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share, as reported
|
|
$
0.24
|
|
$
0.24
|
|
$
0.23
|
|
$
0.21
|
|
$
0.23
|
|
$
0.92
|
|
$
0.86
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
-
|
|
0.01
|
|
-
|
|
-
|
|
-
|
|
0.01
|
|
-
|
Acquisition
integration and other costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Writedowns of
banking house assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.01
|
|
-
|
|
0.03
|
Severance-related costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Gain on sale
of business, net of expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.02)
|
|
-
|
|
(0.02)
|
Total adjustments per share
|
|
-
|
|
0.01
|
|
n/a
|
|
n/a
|
|
(0.01)
|
|
0.01
|
|
0.01
|
Operating earnings per common share
|
|
$
0.24
|
|
$
0.25
|
|
n/a
|
|
n/a
|
|
$
0.22
|
|
$
0.93
|
|
$
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$40,623
|
|
$40,304
|
|
$39,422
|
|
$38,773
|
|
$37,955
|
|
$39,784
|
|
$36,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
0.74%
|
|
0.75%
|
|
n/a
|
|
n/a
|
|
0.71%
|
|
0.71%
|
|
0.71%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
earnings
|
|
$
75.1
|
|
$
75.8
|
|
n/a
|
|
n/a
|
|
$
67.2
|
|
$
282.3
|
|
$
262.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
5,039
|
|
$
4,841
|
|
$
4,795
|
|
$
4,761
|
|
$
4,736
|
|
$
4,859
|
|
$
4,697
|
Less: Average
preferred stock
|
|
165
|
|
-
|
|
-
|
|
-
|
|
-
|
|
41
|
|
-
|
Average common
equity
|
|
4,874
|
|
4,841
|
|
4,795
|
|
4,761
|
|
4,736
|
|
4,818
|
|
4,697
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,094
|
|
2,073
|
|
2,079
|
|
2,085
|
|
2,092
|
|
2,083
|
|
2,094
|
Average tangible
common equity
|
|
$
2,780
|
|
$
2,768
|
|
$
2,716
|
|
$
2,676
|
|
$
2,644
|
|
$
2,735
|
|
$
2,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
10.8%
|
|
11.0%
|
|
n/a
|
|
n/a
|
|
10.2%
|
|
10.3%
|
|
10.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING DIVIDEND
PAYOUT RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Dividends
paid
|
|
$
51.7
|
|
$
51.7
|
|
$
51.7
|
|
$
50.6
|
|
$
50.6
|
|
$
205.7
|
|
$
201.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
$
75.1
|
|
$
75.8
|
|
n/a
|
|
n/a
|
|
$
67.2
|
|
$
282.3
|
|
$
262.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating dividend
payout ratio
|
|
68.8%
|
|
68.2%
|
|
n/a
|
|
n/a
|
|
75.3%
|
|
72.9%
|
|
76.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
Total stockholders'
equity
|
|
$
5,142
|
|
$
4,862
|
|
$
4,830
|
|
$
4,791
|
|
$
4,732
|
Less: Preferred
stock
|
|
244
|
|
-
|
|
-
|
|
-
|
|
-
|
Common
equity
|
|
4,898
|
|
4,862
|
|
4,830
|
|
4,791
|
|
4,732
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,142
|
|
2,070
|
|
2,076
|
|
2,079
|
|
2,088
|
Tangible common
equity
|
|
$
2,756
|
|
$
2,792
|
|
$
2,754
|
|
$
2,712
|
|
$
2,644
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$40,610
|
|
$40,692
|
|
$40,150
|
|
$39,264
|
|
$38,947
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,142
|
|
2,070
|
|
2,076
|
|
2,079
|
|
2,088
|
Tangible
assets
|
|
$38,468
|
|
$38,622
|
|
$38,074
|
|
$37,185
|
|
$36,859
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.2%
|
|
7.2%
|
|
7.2%
|
|
7.3%
|
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
(in millions, except
per share data)
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
Tangible common
equity
|
|
$
2,756
|
|
$
2,792
|
|
$
2,754
|
|
$
2,712
|
|
$
2,644
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
405.00
|
|
400.13
|
|
399.74
|
|
399.54
|
|
399.24
|
Less: Shares
classified as treasury shares
|
|
89.06
|
|
89.05
|
|
89.05
|
|
89.04
|
|
89.06
|
Unallocated ESOP shares
|
|
6.97
|
|
7.06
|
|
7.14
|
|
7.23
|
|
7.32
|
Common
shares
|
|
308.97
|
|
304.02
|
|
303.55
|
|
303.27
|
|
302.86
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per share
|
|
$
8.92
|
|
$
9.18
|
|
$
9.07
|
|
$
8.94
|
|
$
8.73
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-fourth-quarter-net-income-of-759-million-or-024-per-common-share-300393843.html
SOURCE People's United Bank