BRIDGEPORT,
Conn., Oct. 18, 2018
/PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT)
today reported results for the third quarter 2018. Results for the
third quarter and comparison periods are summarized
below:
($ in millions,
except per common share data)
|
|
|
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As of and for
the Three Months Ended
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Sep. 30,
2018
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Jun. 30,
2018
|
|
Sep. 30,
2017
|
Net income
|
|
$
117.0
|
|
$
110.2
|
|
$
90.8
|
Net income
available
|
|
113.5
|
|
106.7
|
|
87.3
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to common
shareholders
|
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Per common
share
|
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0.33
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|
0.31
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|
0.26
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|
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Operating
earnings1
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|
113.8
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|
109.0
|
|
89.3
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Per common
share
|
|
0.33
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|
0.32
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|
0.26
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|
|
|
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|
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Net interest
income
|
|
$
306.4
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|
$
301.2
|
|
$
284.6
|
|
Net interest
margin
|
|
3.15%
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3.10%
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|
3.04%
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|
|
|
|
|
|
|
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Non-interest
income
|
|
92.3
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|
94.9
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89.3
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Non-interest
expense
|
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$
241.3
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$
248.6
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$
237.1
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Operating
non-interest expense1
|
240.8
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|
245.7
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|
234.1
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|
|
|
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Efficiency
ratio
|
|
56.7%
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|
58.4%
|
|
57.3%
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|
|
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Average
balances
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Loans
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$
32,166
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$
32,116
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|
$
31,994
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Deposits
|
|
33,058
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|
32,536
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|
32,065
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|
|
|
|
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End of period
balances
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Loans
|
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32,199
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32,512
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|
32,384
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Deposits
|
|
33,210
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|
32,468
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32,547
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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"Third quarter results reflect our consistent focus on
improving relationship profitability across the Company's diverse
mix of businesses," said Jack
Barnes, Chairman and Chief Executive Officer. "Another
quarter of record earnings generated a return on average tangible
common equity of 14.5 percent, up 270 basis points from the prior
year quarter. The addition of First Connecticut further strengthens
the franchise's earnings power as we are confident in achieving the
transaction's attractive financial returns. Integration has
progressed well and the core system conversion will take place in
January. Experienced teams at both companies have worked closely
together to ensure a seamless transition for clients who will
benefit from our full suite of products and services as well as
enhanced digital capabilities. We are excited about executing in
the market as one team and deepening our well-established presence
in the central Connecticut and
western Massachusetts
regions."
"Operating earnings of $113.8
million for the third quarter increased 27 percent
year-over-year and benefited from higher revenues and
well-controlled expenses," said David
Rosato, Senior Executive Vice President and Chief Financial
Officer. "Total revenues of $399
million grew seven percent due to increases in both net
interest income and non-interest income. Net interest margin
expanded 11 basis points from a year ago and five basis points
linked-quarter highlighting the asset sensitivity of the balance
sheet. As expected, deposits rebounded in the third quarter with
average balances rising $522 million
or two percent from the second quarter, while average loans were
flat over the same period. Loan growth has been below our
expectations this year primarily due to heightened competition,
lower demand and above average payoffs. In this environment, we
continue to emphasize the importance of improving operating
leverage as evidenced by a third quarter efficiency ratio of 56.7
percent. We are particularly pleased with our ability to control
costs, especially as we further invest in revenue producing talent
and enhanced technology."
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As of and for
the Three Months Ended
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Sep. 30,
2018
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Jun. 30,
2018
|
|
Sep. 30,
2017
|
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Asset
Quality
|
|
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|
|
|
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Net loan
charge-offs
|
|
0.09%
|
|
0.06%
|
|
0.06%
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|
|
to average total
loans
|
|
|
|
|
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Originated
non-performing loans
|
|
0.53%
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0.56%
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0.59%
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as a percentage of
originated loans
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Returns
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Return on average
assets1
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1.06%
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|
1.00%
|
|
0.84%
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|
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Return on average
tangible common equity1
|
14.5%
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|
13.9%
|
|
11.8%
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Capital
Ratios
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People's United
Financial, Inc.
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Tangible common
equity / tangible assets
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7.6%
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7.3%
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7.1%
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Tier 1
leverage
|
|
8.7%
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8.6%
|
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8.3%
|
|
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Common equity tier
1
|
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10.3%
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10.0%
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9.5%
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Tier 1
risk-based
|
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11.1%
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10.8%
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10.2%
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Total
risk-based
|
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12.8%
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12.5%
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12.0%
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People's United Bank,
N.A.
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Tier 1
leverage
|
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9.2%
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9.1%
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8.6%
|
|
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Common equity tier
1
|
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11.6%
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|
11.4%
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10.6%
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Tier 1
risk-based
|
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11.6%
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11.4%
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10.6%
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Total
risk-based
|
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13.6%
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13.4%
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12.6%
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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The Company's Board of Directors declared a $0.1750 per common share quarterly dividend
payable November 15, 2018 to
shareholders of record on November 1,
2018. Based on the closing stock price on October 17, 2018, the dividend yield on People's
United Financial common stock is 4.3 percent.
People's United Financial, Inc., a diversified financial
services company with $47 billion in
total assets, provides commercial and retail banking, as well as
wealth management services through a network of over 400 branches
in Connecticut, New York, Massachusetts, Vermont, New
Hampshire and Maine.
3Q 2018 Financial Highlights
Summary
- Net income totaled $117.0
million, or $0.33 per common
share.
-
- Net income available to common shareholders totaled
$113.5 million.
- Operating earnings totaled $113.8
million, or $0.33 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $306.4
million in 3Q18 compared to $301.2
million in 2Q18.
- Net interest margin increased five basis points from 2Q18
to 3.15% reflecting:
-
- Higher yields on the loan portfolio (increase of ten
basis points).
- One additional calendar day in 3Q18 (increase of two
basis points).
- Higher yields on the securities portfolio (increase of
one basis point).
- A decrease in average borrowing balances (increase of one
basis point).
- Higher rates on deposits (decrease of nine basis
points).
- Provision for loan losses totaled $8.2 million.
-
- Net loan charge-offs totaled $7.0
million.
- Net loan charge-off ratio of 0.09% in 3Q18.
- Non-interest income totaled $92.3
million in 3Q18 compared to $94.9
million in 2Q18.
-
- Insurance revenue increased $1.5
million, reflecting the seasonality of commercial insurance
renewals.
- Bank service charges increased $0.6 million.
- Commercial banking lending fees decreased $1.5 million.
- Customer interest rate swap income decreased $1.2 million.
- Other non-interest income in 2Q18 includes $2.0 million in gains related to certain legacy
investments.
- At September 30, 2018,
assets under administration, which are not reported as assets of
People's United Financial, totaled $23.8
billion, of which $9.3 billion
are under discretionary management, compared to $23.6 billion and $9.0
billion, respectively, at June 30,
2018.
- Non-interest expense totaled $241.3 million in 3Q18 compared to $248.6 million in 2Q18.
- Operating non-interest expense totaled $240.8 million in 3Q18 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
-
- Compensation and benefits expense increased $0.7 million, primarily reflecting additional
employees resulting from the Vend Lease acquisition.
- Professional and outside services expense, excluding
$0.4 million and $2.1 million of merger-related expenses in 3Q18
and 2Q18, respectively, decreased $1.9
million.
- Other non-interest expense includes merger-related
expenses of $0.1 million in 3Q18 and
$0.8 million in 2Q18. Also included
in 2Q18 is a $4.1 million charge
relating to the closing of 10 branches.
- The efficiency ratio was 56.7% for 3Q18 compared to 58.4%
for 2Q18 and 57.3% for 3Q17 (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 21.6% for both 3Q18 and
the first nine months of 2018, compared to 27.8% for the full-year
of 2017.
-
- The lower rates in 2018 primarily reflect the benefit
from a reduction in the U.S. federal corporate income tax rate from
35% to 21%, effective January 1,
2018.
Commercial Banking
- Commercial loans totaled $23.4
billion at September 30, 2018,
a decrease of $315 million from
June 30, 2018.
-
- The equipment financing portfolio increased $105 million from June 30,
2018.
- The mortgage warehouse portfolio decreased $201 million from June 30,
2018.
- The New York
multi-family portfolio decreased $128
million from June 30,
2018.
- Average commercial loans totaled $23.3 billion in 3Q18, an increase of
$62 million from 2Q18.
-
- The average equipment financing portfolio increased
$197 million from 2Q18, reflecting in
part loans and leases acquired in connection with the Vend Lease
acquisition in June.
- The average New York
multi-family portfolio decreased $108
million from 2Q18.
- The average mortgage warehouse portfolio decreased
$24 million from 2Q18.
- Commercial deposits totaled $11.9
billion at September 30, 2018
compared to $11.4 billion at
June 30, 2018.
- The ratio of originated non-performing commercial loans
to originated commercial loans was 0.52% at September 30, 2018 compared to 0.55% at
June 30, 2018.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $122.1
million at September 30, 2018
compared to $132.6 million at
June 30, 2018.
- For the originated commercial loan portfolio, the
allowance for loan losses as a percentage of loans was 0.94% at
September 30, 2018 compared to 0.93%
at June 30, 2018.
- The originated commercial allowance for loan losses
represented 182% of originated non-performing commercial loans at
September 30, 2018 compared to 169%
at June 30, 2018.
Retail Banking
- Residential mortgage loans totaled $6.9 billion at September
30, 2018, an increase of $46
million from June 30,
2018.
-
- Average residential mortgage loans totaled $6.9 billion in 3Q18, an increase of $34 million from 2Q18.
- Home equity loans totaled $1.9
billion at September 30, 2018,
a decrease of $42 million from
June 30, 2018.
-
- Average home equity loans totaled $1.9 billion in 3Q18, a decrease of $46 million from 2Q18.
- Retail deposits totaled $21.3
billion at September 30, 2018
compared to $21.1 billion at
June 30, 2018.
- The ratio of originated non-performing residential
mortgage loans to originated residential mortgage loans was 0.48%
at September 30, 2018 compared to
0.50% at June 30, 2018.
- The ratio of originated non-performing home equity loans
to originated home equity loans was 0.80% at September 30, 2018 compared to 0.81% at
June 30, 2018.
Conference Call
On October 18, 2018, 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, international, 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.
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FINANCIAL
HIGHLIGHTS
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Three Months
Ended
|
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Sept. 30,
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June 30,
|
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March 31,
|
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Dec. 31,
|
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Sept. 30,
|
|
(dollars in millions,
except per common share data)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
Earnings
Data:
|
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|
|
|
|
|
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|
|
Net interest
income (fully taxable equivalent)
|
$
|
313.0
|
$
|
307.8
|
$
|
302.1
|
$
|
304.1
|
$
|
295.8
|
|
Net interest
income
|
|
306.4
|
|
301.2
|
|
295.8
|
|
292.3
|
|
284.6
|
|
Provision for
loan losses
|
|
8.2
|
|
6.5
|
|
5.4
|
|
7.5
|
|
7.0
|
|
Non-interest
income (1)
|
|
92.3
|
|
94.9
|
|
90.4
|
|
87.3
|
|
89.3
|
|
Non-interest
expense (1)
|
|
241.3
|
|
248.6
|
|
243.5
|
|
239.7
|
|
237.1
|
|
Income before
income tax expense
|
|
149.2
|
|
141.0
|
|
137.3
|
|
132.4
|
|
129.8
|
|
Net
income
|
|
117.0
|
|
110.2
|
|
107.9
|
|
106.2
|
|
90.8
|
|
Net income
available to common shareholders (1)
|
|
113.5
|
|
106.7
|
|
104.4
|
|
102.7
|
|
87.3
|
|
|
|
|
|
|
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Selected
Statistical Data:
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|
|
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|
Net interest
margin (2)
|
|
3.15
|
%
|
3.10
|
%
|
3.05
|
%
|
3.07
|
%
|
3.04
|
%
|
Return on
average assets (1), (2)
|
|
1.06
|
|
1.00
|
|
0.98
|
|
0.96
|
|
0.84
|
|
Return on
average common equity (2)
|
|
8.0
|
|
7.6
|
|
7.5
|
|
7.4
|
|
6.4
|
|
Return on
average tangible common equity (1), (2)
|
|
14.5
|
|
13.9
|
|
13.8
|
|
13.8
|
|
11.8
|
|
Efficiency
ratio (1)
|
|
56.7
|
|
58.4
|
|
59.4
|
|
56.1
|
|
57.3
|
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Common Share
Data:
|
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Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
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|
Basic
|
$
|
0.33
|
$
|
0.31
|
$
|
0.31
|
$
|
0.30
|
$
|
0.26
|
|
Diluted (1)
|
|
0.33
|
|
0.31
|
|
0.30
|
|
0.30
|
|
0.26
|
|
Dividends paid
per common share
|
|
0.1750
|
|
0.1750
|
|
0.1725
|
|
0.1725
|
|
0.1725
|
|
Common
dividend payout ratio (1)
|
|
52.9
|
%
|
56.2
|
%
|
56.3
|
%
|
57.1
|
%
|
66.8
|
%
|
Book value per
common share (end of period)
|
$
|
16.69
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$
|
16.56
|
$
|
16.43
|
$
|
16.40
|
$
|
16.29
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|
Tangible book
value per common share (end of period) (1)
|
|
9.19
|
|
9.02
|
|
8.93
|
|
8.87
|
|
8.68
|
|
Stock
price:
|
|
|
|
|
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High
|
|
19.00
|
|
19.37
|
|
20.26
|
|
19.50
|
|
18.26
|
|
Low
|
|
16.95
|
|
18.00
|
|
18.18
|
|
17.58
|
|
15.97
|
|
Close (end of period)
|
|
17.12
|
|
18.09
|
|
18.66
|
|
18.70
|
|
18.14
|
|
Common shares
(end of period) (in millions)
|
|
342.36
|
|
341.59
|
|
341.01
|
|
339.98
|
|
337.84
|
|
Weighted
average diluted common shares (in millions)
|
345.04
|
|
344.47
|
|
344.00
|
|
341.11
|
|
338.82
|
|
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|
|
|
|
|
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|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
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(2)
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 common share data)
|
|
2018
|
|
2017
|
|
Earnings
Data:
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
922.9
|
$
|
839.1
|
|
Net interest
income
|
|
903.4
|
|
808.1
|
|
Provision for
loan losses
|
|
20.1
|
|
18.5
|
|
Non-interest
income
|
|
277.6
|
|
265.6
|
|
Non-interest
expense (1)
|
|
733.4
|
|
720.5
|
|
Income before
income tax expense
|
|
427.5
|
|
334.7
|
|
Net
income
|
|
335.1
|
|
230.9
|
|
Net income
available to common shareholders (1)
|
|
324.6
|
|
220.4
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
Net interest
margin (2)
|
|
3.10
|
%
|
2.94
|
%
|
Return on
average assets (1), (2)
|
|
1.01
|
|
0.73
|
|
Return on
average common equity (2)
|
|
7.7
|
|
5.6
|
|
Return on
average tangible common equity (1), (2)
|
|
14.1
|
|
10.0
|
|
Efficiency
ratio (1)
|
|
58.2
|
|
58.3
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
Basic
|
$
|
0.95
|
$
|
0.67
|
|
Diluted (1)
|
|
0.94
|
|
0.67
|
|
Dividends paid
per common share
|
|
0.5225
|
|
0.5150
|
|
Common
dividend payout ratio (1)
|
|
55.1
|
%
|
76.8
|
%
|
Book value per
common share (end of period)
|
$
|
16.69
|
$
|
16.29
|
|
Tangible book
value per common share (end of period) (1)
|
|
9.19
|
|
8.68
|
|
Stock
price:
|
|
|
|
|
|
High
|
|
20.26
|
|
19.85
|
|
Low
|
|
16.95
|
|
15.97
|
|
Close (end of period)
|
|
17.12
|
|
18.14
|
|
Common shares
(end of period) (in millions)
|
|
342.36
|
|
337.84
|
|
Weighted
average diluted common shares (in millions)
|
|
344.50
|
|
329.59
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
(2)
Annualized.
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March
31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
44,133
|
$
|
44,575
|
$
|
44,101
|
$
|
44,453
|
$
|
43,998
|
|
Loans
|
|
32,199
|
|
32,512
|
|
32,104
|
|
32,575
|
|
32,384
|
|
Securities
|
|
7,385
|
|
7,324
|
|
7,173
|
|
7,043
|
|
6,914
|
|
Short-term investments
|
|
128
|
|
253
|
|
470
|
|
378
|
|
303
|
|
Allowance for loan losses
|
|
238
|
|
237
|
|
235
|
|
234
|
|
233
|
|
Goodwill and other acquisition-related intangible assets
|
|
2,569
|
|
2,574
|
|
2,555
|
|
2,560
|
|
2,568
|
|
Deposits
|
|
33,210
|
|
32,468
|
|
32,894
|
|
33,056
|
|
32,547
|
|
Borrowings
|
|
3,392
|
|
4,639
|
|
3,877
|
|
4,104
|
|
4,144
|
|
Notes and debentures
|
|
886
|
|
889
|
|
892
|
|
902
|
|
906
|
|
Stockholders' equity
|
|
5,959
|
|
5,900
|
|
5,845
|
|
5,820
|
|
5,746
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
33,165
|
|
33,369
|
|
32,833
|
|
33,256
|
|
33,029
|
|
People's United
Bank, N.A.
|
|
33,116
|
|
33,317
|
|
32,784
|
|
33,202
|
|
32,981
|
|
Non-performing assets (2)
|
|
173
|
|
187
|
|
174
|
|
168
|
|
191
|
|
Net loan charge-offs
|
|
7.0
|
|
5.0
|
|
4.5
|
|
6.5
|
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
32,166
|
$
|
32,116
|
$
|
32,096
|
$
|
32,271
|
$
|
31,994
|
|
Securities (3)
|
|
7,404
|
|
7,302
|
|
7,186
|
|
7,022
|
|
6,559
|
|
Short-term investments
|
|
193
|
|
267
|
|
366
|
|
361
|
|
347
|
|
Total earning assets
|
|
39,763
|
|
39,685
|
|
39,648
|
|
39,654
|
|
38,900
|
|
Total assets
|
|
44,245
|
|
44,110
|
|
44,011
|
|
44,039
|
|
43,256
|
|
Deposits
|
|
33,058
|
|
32,536
|
|
32,824
|
|
32,879
|
|
32,065
|
|
Borrowings
|
|
3,539
|
|
4,031
|
|
3,752
|
|
3,836
|
|
4,010
|
|
Notes and debentures
|
|
888
|
|
890
|
|
895
|
|
904
|
|
909
|
|
Total funding liabilities
|
|
37,485
|
|
37,456
|
|
37,471
|
|
37,619
|
|
36,984
|
|
Stockholders' equity
|
|
5,937
|
|
5,870
|
|
5,820
|
|
5,774
|
|
5,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
|
0.09
|
%
|
0.06
|
%
|
0.06
|
%
|
0.08
|
%
|
0.06
|
%
|
Non-performing assets to originated loans,
|
|
|
|
|
|
|
|
|
|
|
|
real estate owned and
repossessed assets (2)
|
|
0.57
|
|
0.62
|
|
0.58
|
|
0.56
|
|
0.64
|
|
Originated allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
(2)
|
|
0.78
|
|
0.77
|
|
0.78
|
|
0.77
|
|
0.77
|
|
Originated
non-performing loans (2)
|
|
147.9
|
|
138.4
|
|
149.3
|
|
155.2
|
|
131.6
|
|
Average stockholders' equity to average total assets
|
|
13.4
|
|
13.3
|
|
13.2
|
|
13.1
|
|
13.2
|
|
Stockholders' equity to total assets
|
|
13.5
|
|
13.2
|
|
13.3
|
|
13.1
|
|
13.1
|
|
Tangible common equity to tangible assets (4)
|
|
7.6
|
|
7.3
|
|
7.3
|
|
7.2
|
|
7.1
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.8
|
|
12.5
|
|
12.6
|
|
12.2
|
|
12.0
|
|
People's United
Bank, N.A.
|
|
13.6
|
|
13.4
|
|
12.9
|
|
12.6
|
|
12.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) September 30,
2018 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)
|
2018
|
2018
|
2017
|
2017
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
410.5
|
$
462.7
|
$
505.1
|
$
414.1
|
Short-term
investments
|
127.5
|
253.1
|
377.5
|
302.5
|
Securities:
|
|
|
|
|
Trading debt
securities, at fair value
|
8.3
|
8.2
|
8.2
|
8.3
|
Equity
securities, at fair value
|
8.9
|
9.9
|
8.7
|
9.0
|
Debt
securities available-for-sale, at fair value
|
3,312.1
|
3,245.1
|
3,125.3
|
3,188.5
|
Debt
securities held-to-maturity, at amortized cost
|
3,742.9
|
3,718.7
|
3,588.1
|
3,387.6
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
312.4
|
342.2
|
312.3
|
320.9
|
Total securities
|
7,384.6
|
7,324.1
|
7,042.6
|
6,914.3
|
Loans
held-for-sale
|
15.2
|
17.1
|
16.6
|
15.0
|
Loans:
|
|
|
|
|
Commercial
real estate
|
10,595.5
|
10,761.1
|
11,068.7
|
11,180.5
|
Commercial and
industrial
|
8,568.6
|
8,823.3
|
8,731.1
|
8,624.7
|
Equipment
financing
|
4,209.3
|
4,103.9
|
3,905.4
|
3,705.6
|
Total Commercial Portfolio
|
23,373.4
|
23,688.3
|
23,705.2
|
23,510.8
|
Residential
mortgage
|
6,911.9
|
6,866.2
|
6,805.7
|
6,781.0
|
Home equity
and other consumer
|
1,914.0
|
1,957.5
|
2,064.4
|
2,092.7
|
Total Retail Portfolio
|
8,825.9
|
8,823.7
|
8,870.1
|
8,873.7
|
Total loans
|
32,199.3
|
32,512.0
|
32,575.3
|
32,384.5
|
Less allowance
for loan losses
|
(238.0)
|
(236.8)
|
(234.4)
|
(233.4)
|
Total loans, net
|
31,961.3
|
32,275.2
|
32,340.9
|
32,151.1
|
Goodwill and other
acquisition-related intangible assets
|
2,568.9
|
2,573.8
|
2,560.0
|
2,567.9
|
Bank-owned life
insurance
|
407.7
|
407.2
|
405.0
|
405.6
|
Premises and
equipment, net
|
243.8
|
246.3
|
253.0
|
264.7
|
Other
assets
|
1,013.7
|
1,015.0
|
952.7
|
963.0
|
Total assets
|
$
44,133.2
|
$
44,574.5
|
$
44,453.4
|
$
43,998.2
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
8,060.2
|
$
8,002.4
|
$
8,002.4
|
$
7,655.3
|
Savings
|
4,048.8
|
4,184.9
|
4,410.5
|
4,513.1
|
Interest-bearing checking and money market
|
15,065.3
|
14,659.4
|
15,189.1
|
15,143.1
|
Time
|
6,035.9
|
5,621.5
|
5,454.3
|
5,235.8
|
Total deposits
|
33,210.2
|
32,468.2
|
33,056.3
|
32,547.3
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,369.7
|
3,510.1
|
2,774.4
|
3,074.1
|
Federal funds
purchased
|
735.0
|
855.0
|
820.0
|
543.0
|
Customer
repurchase agreements
|
261.3
|
254.9
|
301.6
|
295.8
|
Other
borrowings
|
26.0
|
19.1
|
207.8
|
231.1
|
Total borrowings
|
3,392.0
|
4,639.1
|
4,103.8
|
4,144.0
|
Notes and
debentures
|
885.6
|
888.7
|
901.6
|
906.2
|
Other
liabilities
|
686.5
|
678.3
|
571.8
|
654.6
|
Total liabilities
|
38,174.3
|
38,674.3
|
38,633.5
|
38,252.1
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
244.1
|
Common
stock
|
4.4
|
4.4
|
4.4
|
4.3
|
Additional paid-in
capital
|
6,054.3
|
6,040.3
|
6,012.3
|
5,972.2
|
Retained
earnings
|
1,220.9
|
1,167.9
|
1,040.2
|
996.4
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(131.9)
|
(133.7)
|
(137.3)
|
(139.1)
|
Accumulated other
comprehensive loss
|
(270.8)
|
(260.7)
|
(181.7)
|
(169.7)
|
Treasury stock, at
cost
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
Total stockholders' equity
|
5,958.9
|
5,900.2
|
5,819.9
|
5,746.1
|
Total liabilities and stockholders' equity
|
$
44,133.2
|
$
44,574.5
|
$
44,453.4
|
$
43,998.2
|
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 common share data)
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
114.7
|
|
$
111.5
|
|
$
107.0
|
|
$
106.2
|
|
$
105.6
|
Commercial and
industrial
|
93.2
|
|
90.1
|
|
82.3
|
|
80.1
|
|
80.0
|
Equipment
financing
|
56.2
|
|
50.5
|
|
48.9
|
|
47.4
|
|
41.5
|
Residential
mortgage
|
56.0
|
|
55.3
|
|
54.7
|
|
53.4
|
|
52.5
|
Home equity
and other consumer
|
22.0
|
|
21.4
|
|
20.8
|
|
20.7
|
|
21.0
|
Total interest on loans
|
342.1
|
|
328.8
|
|
313.7
|
|
307.8
|
|
300.6
|
Securities
|
46.6
|
|
45.1
|
|
44.0
|
|
41.6
|
|
37.2
|
Short-term
investments
|
1.1
|
|
1.3
|
|
1.2
|
|
1.0
|
|
1.1
|
Loans
held-for-sale
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.3
|
Total interest and dividend income
|
390.0
|
|
375.4
|
|
359.1
|
|
350.6
|
|
339.2
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
56.9
|
|
47.3
|
|
41.3
|
|
38.3
|
|
34.4
|
Borrowings
|
18.2
|
|
18.5
|
|
14.2
|
|
12.4
|
|
12.7
|
Notes and
debentures
|
8.5
|
|
8.4
|
|
7.8
|
|
7.6
|
|
7.5
|
Total interest expense
|
83.6
|
|
74.2
|
|
63.3
|
|
58.3
|
|
54.6
|
Net interest income
|
306.4
|
|
301.2
|
|
295.8
|
|
292.3
|
|
284.6
|
Provision for loan
losses
|
8.2
|
|
6.5
|
|
5.4
|
|
7.5
|
|
7.0
|
Net interest income after provision for loan losses
|
298.2
|
|
294.7
|
|
290.4
|
|
284.8
|
|
277.6
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
24.9
|
|
24.3
|
|
23.8
|
|
24.7
|
|
25.3
|
Investment
management fees
|
17.4
|
|
17.2
|
|
17.7
|
|
17.3
|
|
16.9
|
Operating
lease income
|
11.0
|
|
11.2
|
|
10.7
|
|
11.7
|
|
10.9
|
Insurance
revenue
|
9.8
|
|
8.3
|
|
9.8
|
|
6.9
|
|
9.7
|
Commercial
banking lending fees
|
7.9
|
|
9.4
|
|
10.4
|
|
8.8
|
|
7.0
|
Cash
management fees
|
7.0
|
|
7.0
|
|
6.6
|
|
6.5
|
|
6.8
|
Brokerage
commissions
|
3.2
|
|
3.2
|
|
3.1
|
|
2.9
|
|
2.8
|
Customer
interest rate swap income, net
|
2.8
|
|
4.0
|
|
1.5
|
|
5.2
|
|
1.9
|
Net security
gains (losses) (1)
|
0.1
|
|
-
|
|
0.1
|
|
(9.8)
|
|
-
|
Other
non-interest income
|
8.2
|
|
10.3
|
|
6.7
|
|
13.1
|
|
8.0
|
Total non-interest income
|
92.3
|
|
94.9
|
|
90.4
|
|
87.3
|
|
89.3
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits (2)
|
135.7
|
|
135.0
|
|
140.7
|
|
132.7
|
|
129.9
|
Occupancy and
equipment
|
41.6
|
|
40.8
|
|
41.2
|
|
41.0
|
|
40.2
|
Professional
and outside services
|
17.0
|
|
20.6
|
|
18.6
|
|
18.7
|
|
19.2
|
Regulatory
assessments
|
10.0
|
|
9.9
|
|
10.6
|
|
11.9
|
|
10.3
|
Operating
lease expense
|
8.9
|
|
8.7
|
|
9.0
|
|
8.9
|
|
8.8
|
Amortization
of other acquisition-related intangible assets
|
4.9
|
|
4.9
|
|
5.1
|
|
7.9
|
|
7.9
|
Other
non-interest expense (2)
|
23.2
|
|
28.7
|
|
18.3
|
|
18.6
|
|
20.8
|
Total non-interest expense (1)
|
241.3
|
|
248.6
|
|
243.5
|
|
239.7
|
|
237.1
|
Income before income tax expense
|
149.2
|
|
141.0
|
|
137.3
|
|
132.4
|
|
129.8
|
Income tax expense
(1)
|
32.2
|
|
30.8
|
|
29.4
|
|
26.2
|
|
39.0
|
Net income
|
117.0
|
|
110.2
|
|
107.9
|
|
106.2
|
|
90.8
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
Net income available to common shareholders
|
$
113.5
|
|
$
106.7
|
|
$
104.4
|
|
$
102.7
|
|
$
87.3
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.33
|
|
$
0.31
|
|
$
0.31
|
|
$
0.30
|
|
$
0.26
|
Diluted
|
0.33
|
|
0.31
|
|
0.30
|
|
0.30
|
|
0.26
|
(1) Includes $10.0
million of security losses incurred as a tax planning strategy in
response to tax reform enacted on December 22, 2017,
|
which are considered
non-operating, for the three months ended December 31, 2017. Total
non-interest expense includes
|
|
$0.5 million, $2.9 million,
$1.6 million and $3.0 million of non-operating expenses for the
three months ended September 30, 2018,
|
June 30, 2018, December 31,
2017 and September 30, 2017, respectively. Income tax expense
includes a $6.5 million benefit realized
|
in connection with tax
reform, which is considered non-operating, for the three months
ended December 31, 2017. See Non-GAAP
|
Financial Measures and
Reconciliation to GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
(2) In accordance
with GAAP, effective January 1, 2018, net periodic pension and
postretirement benefit costs are reported within other
|
non-interest expense rather
than compensation and benefits. Prior period amounts have been
reclassified to conform to this
|
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30,
|
(in millions, except
per common share data)
|
2018
|
|
2017
|
Interest and
dividend income:
|
|
|
|
Commercial
real estate
|
$
333.2
|
|
$
299.5
|
Commercial and
industrial
|
265.6
|
|
218.7
|
Equipment
financing
|
155.6
|
|
104.6
|
Residential
mortgage
|
166.0
|
|
154.1
|
Home equity
and other consumer
|
64.2
|
|
59.3
|
Total interest on loans
|
984.6
|
|
836.2
|
Securities
|
135.7
|
|
112.1
|
Short-term
investments
|
3.6
|
|
2.7
|
Loans held for
sale
|
0.6
|
|
0.7
|
Total interest and dividend income
|
1,124.5
|
|
951.7
|
Interest
expense:
|
|
|
|
Deposits
|
145.5
|
|
92.4
|
Borrowings
|
50.9
|
|
28.9
|
Notes and
debentures
|
24.7
|
|
22.3
|
Total interest expense
|
221.1
|
|
143.6
|
Net interest income
|
903.4
|
|
808.1
|
Provision for loan
losses
|
20.1
|
|
18.5
|
Net interest income after provision for loan losses
|
883.3
|
|
789.6
|
Non-interest
income:
|
|
|
|
Bank service
charges
|
73.0
|
|
73.8
|
Investment
management fees
|
52.3
|
|
49.2
|
Operating
lease income
|
32.9
|
|
32.1
|
Insurance
revenue
|
27.9
|
|
26.3
|
Commercial
banking lending fees
|
27.7
|
|
26.7
|
Cash
management fees
|
20.6
|
|
19.6
|
Brokerage
commissions
|
9.5
|
|
9.2
|
Customer
interest rate swap income, net
|
8.3
|
|
7.1
|
Net security
gains (losses)
|
0.2
|
|
(15.6)
|
Other
non-interest income
|
25.2
|
|
37.2
|
Total non-interest income
|
277.6
|
|
265.6
|
Non-interest
expense:
|
|
|
|
Compensation
and benefits (1)
|
411.4
|
|
389.9
|
Occupancy and
equipment
|
123.6
|
|
118.6
|
Professional
and outside services
|
56.2
|
|
62.8
|
Regulatory
assessments
|
30.5
|
|
29.8
|
Operating
lease expense
|
26.6
|
|
26.3
|
Amortization
of other acquisition-related intangible assets
|
14.9
|
|
22.1
|
Other
non-interest expense (1)
|
70.2
|
|
71.0
|
Total non-interest expense (2)
|
733.4
|
|
720.5
|
Income before income tax expense
|
427.5
|
|
334.7
|
Income tax
expense
|
92.4
|
|
103.8
|
Net income
|
335.1
|
|
230.9
|
Preferred stock
dividend
|
10.5
|
|
10.5
|
Net income available to common shareholders
|
$
324.6
|
|
$
220.4
|
|
|
|
|
Earnings per common
share:
|
|
|
|
Basic
|
$
0.95
|
|
$
0.67
|
Diluted
|
0.94
|
|
0.67
|
(1) In accordance
with GAAP, effective January 1, 2018, net periodic pension and
postretirement benefit
|
costs are reported within
other non-interest expense rather than compensation and benefits.
Prior
|
|
period amounts have been
reclassified to conform to this presentation.
|
|
|
|
|
(2) Total
non-interest expense includes $3.4 million and $29.0 million of
non-operating expenses for the nine
|
months ended September 30,
2018 and 2017, respectively. See Non-GAAP Financial Measures
and
|
|
Reconcilioation to
GAAP.
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
June 30,
2018
|
|
September 30,
2017
|
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
|
$
192.5
|
$
1.1
|
2.06%
|
|
$
266.7
|
$
1.3
|
2.02%
|
|
$
347.3
|
$
1.1
|
1.25%
|
Securities
(2)
|
7,404.2
|
50.8
|
2.75
|
|
7,302.1
|
49.2
|
2.69
|
|
6,558.8
|
44.4
|
2.71
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
10,641.4
|
114.7
|
4.31
|
|
10,802.9
|
111.5
|
4.13
|
|
11,169.8
|
105.6
|
3.78
|
Commercial and
industrial
|
8,584.8
|
95.6
|
4.45
|
|
8,558.3
|
92.6
|
4.32
|
|
8,580.0
|
84.0
|
3.91
|
Equipment
financing
|
4,120.8
|
56.2
|
5.47
|
|
3,923.6
|
50.5
|
5.14
|
|
3,399.5
|
41.5
|
4.89
|
Residential
mortgage
|
6,887.3
|
56.2
|
3.27
|
|
6,853.6
|
55.5
|
3.24
|
|
6,731.7
|
52.8
|
3.13
|
Home equity
and other consumer
|
1,931.8
|
22.0
|
4.55
|
|
1,977.6
|
21.4
|
4.33
|
|
2,112.6
|
21.0
|
3.97
|
Total loans
|
32,166.1
|
344.7
|
4.29
|
|
32,116.0
|
331.5
|
4.13
|
|
31,993.6
|
304.9
|
3.81
|
Total earning assets
|
39,762.8
|
$ 396.6
|
3.99%
|
|
39,684.8
|
$ 382.0
|
3.85%
|
|
38,899.7
|
$ 350.4
|
3.60%
|
Other
assets
|
4,481.8
|
|
|
|
4,425.0
|
|
|
|
4,356.7
|
|
|
Total assets
|
$
44,244.6
|
|
|
|
$
44,109.8
|
|
|
|
$
43,256.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
8,025.2
|
$
-
|
- %
|
|
$
7,872.7
|
$
-
|
- %
|
|
$
7,609.1
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
19,031.4
|
32.6
|
0.68
|
|
19,220.6
|
28.2
|
0.59
|
|
19,529.1
|
21.4
|
0.44
|
Time
|
6,001.3
|
24.3
|
1.62
|
|
5,442.3
|
19.1
|
1.40
|
|
4,926.8
|
13.0
|
1.06
|
Total deposits
|
33,057.9
|
56.9
|
0.69
|
|
32,535.6
|
47.3
|
0.58
|
|
32,065.0
|
34.4
|
0.43
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,560.6
|
14.0
|
2.18
|
|
3,009.3
|
14.8
|
1.97
|
|
2,834.3
|
9.4
|
1.33
|
Federal funds
purchased
|
722.7
|
3.8
|
2.11
|
|
634.5
|
3.0
|
1.86
|
|
649.9
|
2.1
|
1.26
|
Customer
repurchase agreements
|
234.3
|
0.3
|
0.53
|
|
228.7
|
0.1
|
0.31
|
|
311.3
|
0.1
|
0.19
|
Other
borrowings
|
20.9
|
0.1
|
2.05
|
|
158.5
|
0.6
|
1.45
|
|
214.2
|
1.1
|
2.06
|
Total borrowings
|
3,538.5
|
18.2
|
2.05
|
|
4,031.0
|
18.5
|
1.84
|
|
4,009.7
|
12.7
|
1.27
|
Notes and
debentures
|
888.3
|
8.5
|
3.83
|
|
889.6
|
8.4
|
3.79
|
|
908.9
|
7.5
|
3.29
|
Total funding liabilities
|
37,484.7
|
$
83.6
|
0.89%
|
|
37,456.2
|
$
74.2
|
0.79%
|
|
36,983.6
|
$
54.6
|
0.59%
|
Other
liabilities
|
823.3
|
|
|
|
784.0
|
|
|
|
550.6
|
|
|
Total liabilities
|
38,308.0
|
|
|
|
38,240.2
|
|
|
|
37,534.2
|
|
|
Stockholders'
equity
|
5,936.6
|
|
|
|
5,869.6
|
|
|
|
5,722.2
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
44,244.6
|
|
|
|
$
44,109.8
|
|
|
|
$
43,256.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 313.0
|
3.10%
|
|
|
$ 307.8
|
3.06%
|
|
|
$ 295.8
|
3.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.15%
|
|
|
|
3.10%
|
|
|
|
3.04%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $6.6 million, $6.6 million and $11.2
million for the three months ended
|
September 30, 2018,
June 30, 2018 and September 30, 2017, respectively.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Nine months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
274.6
|
$
3.6
|
1.74%
|
|
$
357.4
|
$
2.7
|
1.01%
|
Securities
(2)
|
7,298.3
|
148.0
|
2.70
|
|
6,704.9
|
132.2
|
2.63
|
Loans:
|
|
|
|
|
|
|
|
Commercial
real estate
|
10,791.8
|
333.2
|
4.12
|
|
10,913.9
|
299.5
|
3.66
|
Commercial and
industrial
|
8,521.2
|
272.8
|
4.27
|
|
8,192.8
|
229.6
|
3.74
|
Equipment
financing
|
3,972.6
|
155.6
|
5.22
|
|
3,100.5
|
104.6
|
4.50
|
Residential
mortgage
|
6,859.5
|
166.6
|
3.24
|
|
6,601.2
|
154.8
|
3.13
|
Home equity
and other consumer
|
1,981.1
|
64.2
|
4.32
|
|
2,117.6
|
59.3
|
3.73
|
Total loans
|
32,126.2
|
992.4
|
4.12
|
|
30,926.0
|
847.8
|
3.66
|
Total earning assets
|
39,699.1
|
$ 1,144.0
|
3.84%
|
|
37,988.3
|
$ 982.7
|
3.45%
|
Other
assets
|
4,423.6
|
|
|
|
4,102.3
|
|
|
Total assets
|
$
44,122.7
|
|
|
|
$
42,090.6
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
7,899.0
|
$
-
|
- %
|
|
$
7,152.2
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
and money market
|
19,296.0
|
85.7
|
0.59
|
|
19,446.5
|
57.4
|
0.39
|
Time
|
5,611.6
|
59.8
|
1.42
|
|
4,746.5
|
35.0
|
0.98
|
Total deposits
|
32,806.6
|
145.5
|
0.59
|
|
31,345.2
|
92.4
|
0.39
|
Borrowings:
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,748.6
|
39.7
|
1.92
|
|
2,698.0
|
22.3
|
1.10
|
Federal funds
purchased
|
655.6
|
9.1
|
1.85
|
|
627.6
|
4.9
|
1.03
|
Customer
repurchase agreements
|
241.7
|
0.6
|
0.34
|
|
311.6
|
0.4
|
0.19
|
Other
borrowings
|
127.1
|
1.5
|
1.60
|
|
102.5
|
1.3
|
1.71
|
Total borrowings
|
3,773.0
|
50.9
|
1.80
|
|
3,739.7
|
28.9
|
1.03
|
Notes and
debentures
|
891.0
|
24.7
|
3.70
|
|
927.1
|
22.3
|
3.21
|
Total funding liabilities
|
37,470.6
|
$
221.1
|
0.79%
|
|
36,012.0
|
$ 143.6
|
0.53%
|
Other
liabilities
|
776.1
|
|
|
|
548.5
|
|
|
Total liabilities
|
38,246.7
|
|
|
|
36,560.5
|
|
|
Stockholders'
equity
|
5,876.0
|
|
|
|
5,530.1
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
44,122.7
|
|
|
|
$
42,090.6
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$
922.9
|
3.05%
|
|
|
$ 839.1
|
2.92%
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.10%
|
|
|
|
2.94%
|
(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 $19.5 million and $31.0 million for the
nine months ended
|
September 30, 2018 and
2017, respectively.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans acquired in a
business combination are initially recorded at fair value with no
carryover of an acquired entity's previous
|
established allowance
for loan losses. Accordingly, 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)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
17.2
|
$
|
20.3
|
$
|
21.0
|
$
|
23.7
|
$
|
36.7
|
|
|
Commercial and
industrial
|
|
44.9
|
|
50.1
|
|
34.6
|
|
32.6
|
|
34.9
|
|
|
Equipment
financing
|
|
49.3
|
|
49.2
|
|
47.7
|
|
44.3
|
|
54.1
|
|
|
Total
|
|
111.4
|
|
119.6
|
|
103.3
|
|
100.6
|
|
125.7
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
32.0
|
|
33.5
|
|
35.4
|
|
32.7
|
|
33.8
|
|
|
Home
equity
|
|
14.6
|
|
15.1
|
|
16.1
|
|
15.4
|
|
14.8
|
|
|
Other
consumer
|
|
0.1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Total
|
|
46.7
|
|
48.6
|
|
51.5
|
|
48.1
|
|
48.6
|
|
|
Total originated non-performing loans (1)
|
|
158.1
|
|
168.2
|
|
154.8
|
|
148.7
|
|
174.3
|
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
8.7
|
|
9.3
|
|
10.6
|
|
9.3
|
|
6.3
|
|
|
Residential
|
|
4.4
|
|
5.8
|
|
6.8
|
|
7.6
|
|
4.7
|
|
|
Total REO
|
|
13.1
|
|
15.1
|
|
17.4
|
|
16.9
|
|
11.0
|
|
|
Repossessed
assets
|
|
2.0
|
|
3.7
|
|
1.8
|
|
2.5
|
|
5.4
|
|
|
Total non-performing assets
|
$
|
173.2
|
$
|
187.0
|
$
|
174.0
|
$
|
168.1
|
$
|
190.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount)
|
$
|
32.3
|
$
|
26.7
|
$
|
30.1
|
$
|
29.7
|
$
|
26.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.53
|
%
|
0.56
|
%
|
0.52
|
%
|
0.49
|
%
|
0.59
|
%
|
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
|
0.57
|
|
0.62
|
|
0.58
|
|
0.56
|
|
0.64
|
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
4.78
|
|
5.25
|
|
4.94
|
|
4.81
|
|
5.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $2.5 million at September 30, 2018,
$2.6 million at June 30, 2018,
|
|
$3.0 million at March 31,
2018, $3.1 million at December 31, 2017 and $4.0 million at
September 30, 2017.
|
|
|
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)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
|
232.8
|
$
|
231.3
|
$
|
230.8
|
$
|
229.2
|
$
|
227.9
|
|
Charge-offs
|
|
(6.4)
|
|
(4.7)
|
|
(4.4)
|
|
(6.4)
|
|
(5.8)
|
|
Recoveries
|
|
1.0
|
|
1.9
|
|
1.4
|
|
1.2
|
|
1.5
|
|
Net loan charge-offs
|
|
(5.4)
|
|
(2.8)
|
|
(3.0)
|
|
(5.2)
|
|
(4.3)
|
|
Provision for
loan losses
|
|
6.5
|
|
4.3
|
|
3.5
|
|
6.8
|
|
5.6
|
|
Balance at end of period
|
|
233.9
|
|
232.8
|
|
231.3
|
|
230.8
|
|
229.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
4.0
|
|
4.0
|
|
3.6
|
|
4.2
|
|
3.7
|
|
Charge-offs
|
|
(2.0)
|
|
(2.5)
|
|
(1.8)
|
|
(1.5)
|
|
(1.0)
|
|
Recoveries
|
|
0.4
|
|
0.3
|
|
0.3
|
|
0.2
|
|
0.1
|
|
Net loan charge-offs
|
|
(1.6)
|
|
(2.2)
|
|
(1.5)
|
|
(1.3)
|
|
(0.9)
|
|
Provision for
loan losses
|
|
1.7
|
|
2.2
|
|
1.9
|
|
0.7
|
|
1.4
|
|
Balance at end of period
|
|
4.1
|
|
4.0
|
|
4.0
|
|
3.6
|
|
4.2
|
|
Total allowance for loan losses
|
$
|
238.0
|
$
|
236.8
|
$
|
235.3
|
$
|
234.4
|
$
|
233.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated commercial
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
|
0.94
|
%
|
0.93
|
%
|
0.94
|
%
|
0.93
|
%
|
0.94
|
%
|
Originated retail
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated retail loans
|
|
0.36
|
|
0.36
|
|
0.36
|
|
0.35
|
|
0.35
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
|
|
0.78
|
|
0.77
|
|
0.78
|
|
0.77
|
|
0.77
|
|
Originated non-performing loans
|
|
147.9
|
|
138.4
|
|
149.3
|
|
155.2
|
|
131.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
1.7
|
$
|
0.7
|
$
|
0.5
|
$
|
1.5
|
$
|
1.5
|
|
Commercial and
industrial
|
|
2.2
|
|
1.7
|
|
1.7
|
|
2.1
|
|
2.0
|
|
Equipment
financing
|
|
2.9
|
|
2.6
|
|
1.6
|
|
2.0
|
|
0.5
|
|
Total
|
|
6.8
|
|
5.0
|
|
3.8
|
|
5.6
|
|
4.0
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
0.1
|
|
(0.1)
|
|
0.2
|
|
0.2
|
|
0.1
|
|
Home
equity
|
|
(0.1)
|
|
-
|
|
0.4
|
|
0.5
|
|
0.9
|
|
Other
consumer
|
|
0.2
|
|
0.1
|
|
0.1
|
|
0.2
|
|
0.2
|
|
Total
|
|
0.2
|
|
-
|
|
0.7
|
|
0.9
|
|
1.2
|
|
Total net loan charge-offs
|
$
|
7.0
|
$
|
5.0
|
$
|
4.5
|
$
|
6.5
|
$
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.09
|
%
|
0.06
|
%
|
0.06
|
%
|
0.08
|
%
|
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 common
equity ratios, tangible book value per
|
common 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 common
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) (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. Operating earnings per common
share ("EPS") is derived by determining the
|
per common share
impact of the respective adjustments to arrive at operating
earnings and adding (subtracting) such
|
amounts to (from)
diluted EPS, 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
common dividend payout ratio is
|
calculated by
dividing common 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 common 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
|
|
|
|
|
|
|
OPERATING
NON-INTEREST EXPENSE AND EFFICIENCY RATIO
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2018
|
|
2017
|
Total non-interest
expense
|
|
$
241.3
|
|
$
248.6
|
|
$
243.5
|
|
$
239.7
|
|
$
237.1
|
|
$
733.4
|
|
$
720.5
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(0.5)
|
|
(2.9)
|
|
-
|
|
(1.6)
|
|
(3.0)
|
|
(3.4)
|
|
(29.0)
|
Total
|
|
(0.5)
|
|
(2.9)
|
|
-
|
|
(1.6)
|
|
(3.0)
|
|
(3.4)
|
|
(29.0)
|
Operating non-interest expense
|
|
240.8
|
|
245.7
|
|
243.5
|
|
238.1
|
|
234.1
|
|
730.0
|
|
691.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(8.9)
|
|
(8.7)
|
|
(9.0)
|
|
(8.9)
|
|
(8.8)
|
|
(26.6)
|
|
(26.3)
|
Amortization of other
acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(4.9)
|
|
(4.9)
|
|
(5.1)
|
|
(7.9)
|
|
(7.9)
|
|
(14.9)
|
|
(22.1)
|
Other (1)
|
|
(1.8)
|
|
(1.7)
|
|
(1.3)
|
|
(1.4)
|
|
(1.5)
|
|
(4.8)
|
|
(3.7)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
225.2
|
|
$
230.4
|
|
$
228.1
|
|
$
219.9
|
|
$
215.9
|
|
$
683.7
|
|
$
639.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
313.0
|
|
$
307.8
|
|
$
302.1
|
|
$
304.1
|
|
$
295.8
|
|
$
922.9
|
|
$
839.1
|
Total non-interest
income
|
|
92.3
|
|
94.9
|
|
90.4
|
|
87.3
|
|
89.3
|
|
277.6
|
|
265.6
|
Total revenues
|
|
405.3
|
|
402.7
|
|
392.5
|
|
391.4
|
|
385.1
|
|
1,200.5
|
|
1,104.7
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(8.9)
|
|
(8.7)
|
|
(9.0)
|
|
(8.9)
|
|
(8.8)
|
|
(26.6)
|
|
(26.3)
|
BOLI FTE
adjustment
|
|
0.6
|
|
0.4
|
|
0.4
|
|
0.8
|
|
1.2
|
|
1.4
|
|
2.6
|
Net security
(gains) losses
|
|
(0.1)
|
|
-
|
|
(0.1)
|
|
9.8
|
|
-
|
|
(0.2)
|
|
15.6
|
Other
(2)
|
|
-
|
|
-
|
|
-
|
|
(1.3)
|
|
(0.2)
|
|
-
|
|
-
|
Total revenues for efficiency ratio
|
|
$
396.9
|
|
$
394.4
|
|
$
383.8
|
|
$
391.8
|
|
$
377.3
|
|
$
1,175.1
|
|
$
1,096.6
|
Efficiency ratio
|
|
56.7%
|
|
58.4%
|
|
59.4%
|
|
56.1%
|
|
57.3%
|
|
58.2%
|
|
58.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Items
classified as "other" and deducted from non-interest expense for
purposes of calculating the efficiency ratio include
|
certain
franchise taxes and real estate owned expenses.
|
|
|
|
|
|
|
|
|
|
|
(2) Items
classified as "other" and (deducted from) added to 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 common share data)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2018
|
|
2017
|
Net income available
to common shareholders
|
|
$
113.5
|
|
$
106.7
|
|
$
104.4
|
|
$
102.7
|
|
$
87.3
|
|
$
324.6
|
|
$
220.4
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.5
|
|
2.9
|
|
-
|
|
1.6
|
|
3.0
|
|
3.4
|
|
29.0
|
Security
losses associated with tax reform (1)
|
|
-
|
|
-
|
|
-
|
|
10.0
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
0.5
|
|
2.9
|
|
-
|
|
11.6
|
|
3.0
|
|
3.4
|
|
29.0
|
Tax effect
(2)
|
|
(0.2)
|
|
(0.6)
|
|
-
|
|
(9.8)
|
|
(1.0)
|
|
(0.8)
|
|
(9.2)
|
Total adjustments, net of tax
|
|
0.3
|
|
2.3
|
|
-
|
|
1.8
|
|
2.0
|
|
2.6
|
|
19.8
|
Operating earnings
|
|
$
113.8
|
|
$
109.0
|
|
$
104.4
|
|
$
104.5
|
|
$
89.3
|
|
$
327.2
|
|
$
240.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.33
|
|
$
0.31
|
|
$
0.30
|
|
$
0.30
|
|
$
0.26
|
|
$
0.94
|
|
$
0.67
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
0.06
|
Security
losses associated with tax reform
|
|
-
|
|
-
|
|
-
|
|
0.02
|
|
-
|
|
-
|
|
|
Tax benefit
associated with tax reform
|
|
-
|
|
-
|
|
-
|
|
(0.02)
|
|
-
|
|
-
|
|
-
|
Total adjustments per common share
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
0.06
|
Operating EPS
|
|
$
0.33
|
|
$
0.32
|
|
$
0.30
|
|
$
0.31
|
|
$
0.26
|
|
$
0.95
|
|
$
0.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 44,245
|
|
$ 44,110
|
|
$ 44,011
|
|
$ 44,039
|
|
$
43,256
|
|
$ 44,123
|
|
$ 42,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
1.03%
|
|
0.99%
|
|
0.95%
|
|
0.95%
|
|
0.83%
|
|
0.99%
|
|
0.76%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Security losses
incurred as a tax planning strategy in response to tax reform
enacted on December 22, 2017
|
|
|
are considered
non-operating.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes a $6.5
million benefit realized in connection with tax reform enacted on
December 22, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2018
|
|
2017
|
Operating
earnings
|
|
$
113.8
|
|
$
109.0
|
|
$
104.4
|
|
$
104.5
|
|
$
89.3
|
|
$
327.2
|
|
$
240.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
5,937
|
|
$
5,870
|
|
$
5,820
|
|
$
5,774
|
|
$
5,722
|
|
$
5,876
|
|
$
5,530
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
5,693
|
|
5,626
|
|
5,576
|
|
5,530
|
|
5,478
|
|
5,632
|
|
5,286
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,572
|
|
2,554
|
|
2,558
|
|
2,564
|
|
2,524
|
|
2,561
|
|
2,359
|
Average tangible
common equity
|
|
$
3,121
|
|
$
3,072
|
|
$
3,018
|
|
$
2,966
|
|
$
2,954
|
|
$
3,071
|
|
$
2,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
14.6%
|
|
14.2%
|
|
13.8%
|
|
14.1%
|
|
12.1%
|
|
14.2%
|
|
10.9%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
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)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2018
|
|
2017
|
Common dividends
paid
|
|
$
60.0
|
|
$
59.9
|
|
$
58.8
|
|
$
58.6
|
|
$
58.3
|
|
$
178.7
|
|
$
169.3
|
Operating
earnings
|
|
$
113.8
|
|
$
109.0
|
|
$
104.4
|
|
$
104.5
|
|
$
89.3
|
|
$
327.2
|
|
$
240.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
52.7%
|
|
55.0%
|
|
56.3%
|
|
56.1%
|
|
65.3%
|
|
54.6%
|
|
70.5%
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
Total stockholders'
equity
|
|
$
5,959
|
|
$
5,900
|
|
$
5,845
|
|
$
5,820
|
|
$
5,746
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Common
equity
|
|
5,715
|
|
5,656
|
|
5,601
|
|
5,576
|
|
5,502
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,569
|
|
2,574
|
|
2,555
|
|
2,560
|
|
2,568
|
Tangible common
equity
|
|
$
3,146
|
|
$
3,082
|
|
$
3,046
|
|
$
3,016
|
|
$
2,934
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 44,133
|
|
$ 44,575
|
|
$ 44,101
|
|
$ 44,453
|
|
$ 43,998
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,569
|
|
2,574
|
|
2,555
|
|
2,560
|
|
2,568
|
Tangible
assets
|
|
$ 41,564
|
|
$ 42,001
|
|
$ 41,546
|
|
$ 41,893
|
|
$ 41,430
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.6%
|
|
7.3%
|
|
7.3%
|
|
7.2%
|
|
7.1%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
(in millions, except
per common share data)
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
Tangible common
equity
|
|
$
3,146
|
|
$
3,082
|
|
$
3,046
|
|
$
3,016
|
|
$
2,934
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
437.74
|
|
437.06
|
|
436.56
|
|
435.64
|
|
433.59
|
Less: Shares
classified as treasury shares
|
|
89.02
|
|
89.02
|
|
89.02
|
|
89.04
|
|
89.04
|
Unallocated ESOP shares
|
|
6.36
|
|
6.45
|
|
6.53
|
|
6.62
|
|
6.71
|
Common
shares
|
|
342.36
|
|
341.59
|
|
341.01
|
|
339.98
|
|
337.84
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
9.19
|
|
$
9.02
|
|
$
8.93
|
|
$
8.87
|
|
$
8.68
|
View original
content:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-third-quarter-net-income-of-117-0-million-or-0-33-per-common-share-300733851.html
SOURCE People's United Financial, Inc.