BRIDGEPORT, Conn., April 18, 2019 /PRNewswire/ -- People's
United Financial, Inc. (NASDAQ: PBCT) today reported results for
the first quarter 2019. These results along with comparison periods
are summarized below:
|
($ in millions,
except per common share data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
Mar. 31,
2019
|
|
Dec. 31,
2018
|
|
Mar. 31,
2018
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
114.6
|
|
$
132.9
|
|
$
107.9
|
|
Net income
available
|
|
111.1
|
|
129.4
|
|
104.4
|
|
|
to common
shareholders
|
|
|
|
|
|
Per common
share
|
|
0.30
|
|
0.35
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings1
|
|
123.0
|
|
134.2
|
|
104.4
|
|
|
Per common
share
|
|
0.33
|
|
0.36
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
332.8
|
|
$
332.6
|
|
$
295.8
|
|
|
Net interest
margin
|
|
3.20%
|
|
3.17%
|
|
3.05%
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income1
|
|
94.6
|
|
88.7
|
|
90.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
$
277.2
|
|
$
262.7
|
|
$
243.5
|
|
Operating
non-interest expense1
|
262.2
|
|
254.7
|
|
243.5
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
57.3%
|
|
55.1%
|
|
59.4%
|
|
|
|
|
|
|
|
|
|
|
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|
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Average
balances
|
|
|
|
|
|
|
|
Loans
|
|
$
35,046
|
|
$
35,016
|
|
$
32,096
|
|
Deposits
|
|
36,450
|
|
35,959
|
|
32,824
|
|
|
|
|
|
|
|
|
|
|
Period-end
balances
|
|
|
|
|
|
|
|
Loans
|
|
35,515
|
|
35,241
|
|
32,104
|
|
Deposits
|
|
36,901
|
|
36,159
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|
32,894
|
|
|
|
|
|
|
|
|
|
|
1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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|
|
|
"We are pleased with our first quarter performance and continued
success enhancing profitability," said Jack
Barnes, Chairman and Chief Executive Officer. "Operating
earnings of $123 million grew 18
percent from a year ago and operating return on average tangible
common equity of 14.4 percent improved 60 basis points. Total
revenues increased 11 percent year-over-year due to both higher net
interest income and non-interest income. The quarter benefited from
the First Connecticut acquisition and further net interest margin
expansion primarily resulting from higher yields on new business.
With the acquisition of BSB Bancorp complete, we are excited to
leverage our expanded customer and employee base to build upon our
strong organic growth in Massachusetts, particularly in the
Greater Boston area. Integration
has gone very well, core systems conversion will take place in the
third quarter, and we remain confident in achieving the
transaction's attractive financial returns. In addition, we are
proud to announce an increase to our common dividend for the
26th consecutive year, which demonstrates our commitment
to deliver shareholder value through a consistent return of
capital."
"In what is typically a seasonally slower quarter for loan
growth, total period-end loans increased one percent from
year-end," said David Rosato, Senior
Executive Vice President and Chief Financial Officer. "Solid
results across C&I businesses and equipment finance more than
offset lower commercial real estate balances, reflecting the
importance of our portfolio's diversification. We are encouraged
with our ongoing success gathering deposits as period-end balances
were up two percent during the quarter, lowering the
loan-to-deposit ratio to 96 percent. Asset quality was once again
exceptional in each of our portfolios as net charge-offs of six
basis points improved linked-quarter from an already low level.
While the credit environment has continued to be benign for an
extended period, we remain committed to our conservative and
well-defined approach to underwriting that has served us well for
many years."
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As of and for
the Three Months Ended
|
|
|
|
|
Mar. 31,
2019
|
|
Dec. 31,
2018
|
|
Mar. 31,
2018
|
|
|
|
|
|
|
|
|
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Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
|
0.06%
|
|
0.09%
|
|
0.06%
|
|
to average total loans
|
|
|
|
|
Originated
non-performing loans
|
|
0.49%
|
|
0.55%
|
|
0.52%
|
|
as a percentage of
originated loans
|
|
|
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|
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Returns
|
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|
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|
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|
Return on average
assets1
|
|
0.96%
|
|
1.11%
|
|
0.98%
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|
Return on average
tangible common equity1
|
13.0%
|
|
14.9%
|
|
13.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Capital
Ratios
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People's United
Financial, Inc.
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Tangible common
equity / tangible assets
|
7.7%
|
|
7.6%
|
|
7.3%
|
|
Tier 1
leverage
|
|
8.8%
|
|
8.7%
|
|
8.5%
|
|
Common equity tier
1
|
|
10.2%
|
|
10.3%
|
|
10.1%
|
|
Tier 1
risk-based
|
|
10.8%
|
|
10.9%
|
|
10.8%
|
|
Total
risk-based
|
|
12.4%
|
|
12.5%
|
|
12.6%
|
|
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|
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People's United Bank,
N.A.
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|
|
|
|
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Tier 1
leverage
|
|
|
9.0%
|
|
9.0%
|
|
8.6%
|
|
Common equity tier
1
|
|
|
11.2%
|
|
11.4%
|
|
11.0%
|
|
Tier 1
risk-based
|
|
|
11.2%
|
|
11.4%
|
|
11.0%
|
|
Total
risk-based
|
|
|
12.9%
|
|
13.2%
|
|
12.9%
|
|
|
|
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|
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP
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|
The Company's Board of Directors voted to increase the common
stock dividend to an annual rate of $0.71 per share. Based on the closing stock
price on April 17, 2019, the dividend
yield on People's United Financial common stock is 4.1
percent. The quarterly dividend of $0.1775 per share is payable May 15, 2019 to shareholders of record on
May 1, 2019.
People's United Bank, N.A. is a subsidiary of People's United
Financial, Inc., a diversified, community-focused financial
services company headquartered in the Northeast with more than
$48 billion in assets. Founded in
1842, People's United Bank offers commercial and retail banking
through a network of over 400 retail locations in Connecticut, New
York, Massachusetts,
Vermont, New Hampshire and Maine, as well as wealth management and
insurance solutions. The company also provides specialized
commercial services to customers nationwide.
1Q 2019 Financial Highlights
Summary
- Net income totaled $114.6
million, or $0.30 per common
share.
-
- Net income available to common shareholders totaled
$111.1 million.
- Operating earnings totaled $123.0
million, or $0.33 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $332.8
million in 1Q19 compared to $332.6
million in 4Q18.
- Net interest margin increased three basis points from 4Q18 to
3.20% reflecting:
-
- Higher yields on the loan portfolio (increase of 15 basis
points).
- Higher yields on the securities portfolio (increase of one
basis point).
- Higher rates on deposits and borrowings (net decrease of nine
basis points).
- Two fewer calendar days in 1Q19 (decrease of four basis
points).
- Provision for loan losses totaled $5.6
million.
-
- Net loan charge-offs totaled $5.1
million.
- Net loan charge-off ratio of 0.06% in 1Q19.
- Non-interest income totaled $94.6
million in 1Q19 compared to $88.7
million in 4Q18.
-
- Insurance revenue increased $3.8
million.
- Customer interest rate swap income decreased $4.0 million.
- Commercial banking lending fees decreased $1.8 million.
- Bank service charges decreased $1.7
million.
- Net security losses of $10.0
million in 4Q18 incurred in response to a tax reform-related
benefit recognized in the period (see Non-GAAP Financial Measures
and Reconciliation to GAAP).
- At March 31, 2019, assets under
administration totaled $25.5 billion,
of which $9.3 billion are under
discretionary management, compared to $23.3
billion and $8.6 billion,
respectively, at December 31,
2018.
- Non-interest expense totaled $277.2
million in 1Q19 compared to $262.7
million in 4Q18.
-
- Operating non-interest expense totaled $262.2 million in 1Q19 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $1.5 million and $3.5
million of merger-related expenses in 1Q19 and 4Q18,
respectively, increased $5.9 million,
primarily reflecting seasonally higher payroll and benefit-related
costs in 1Q19.
- Professional and outside services expense, excluding
$1.2 million and $3.7 million of merger-related expenses in 1Q19
and 4Q18, respectively, increased $1.1
million.
- Other non-interest expense includes merger-related expenses of
$11.9 million and $0.2 million in 1Q19 and 4Q18, respectively.
- The efficiency ratio was 57.3% for 1Q19 compared to 55.1% for
4Q18 and 59.4% for 1Q18 (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 20.8% for 1Q19 and 18.8% for
the full-year of 2018.
-
- The rate in 2018 reflects a $9.2
million benefit recognized in connection with tax
reform.
Commercial Banking
- Commercial loans totaled $25.4
billion at March 31, 2019, an
increase of $334 million from
December 31, 2018.
-
- The equipment financing portfolio increased $127 million.
- The mortgage warehouse portfolio increased $93 million.
- The New York multifamily
portfolio decreased $27 million.
- Average commercial loans totaled $24.9
billion in 1Q19, an increase of $108
million from 4Q18.
-
- The average equipment financing portfolio increased
$115 million.
- The average mortgage warehouse portfolio decreased $91 million.
- The average New York
multifamily portfolio decreased $48
million.
- Commercial deposits totaled $13.5
billion at March 31, 2019
compared to $13.1 billion at
December 31, 2018.
- The ratio of originated non-performing commercial loans to
originated commercial loans was 0.45% at March 31, 2019 compared to 0.52% at December 31, 2018.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $111.1
million at March 31, 2019
compared to $126.1 million at
December 31, 2018.
- For the originated commercial loan portfolio, the allowance for
loan losses as a percentage of loans was 0.91% at March 31, 2019 compared to 0.93% at December 31, 2018.
- The originated commercial allowance for loan losses represented
202% of originated non-performing commercial loans at March 31, 2019 compared to 181% at December 31, 2018.
Retail Banking
- Residential mortgage loans totaled $8.2
billion at March 31, 2019, an
increase of $9 million from
December 31, 2018.
-
- Average residential mortgage loans totaled $8.2 billion in 1Q19, a decrease of $12 million from 4Q18.
- Home equity loans totaled $1.9
billion at March 31, 2019, a
decrease of $67 million from
December 31, 2018.
-
- Average home equity loans totaled $1.9
billion in 1Q19, a decrease of $66
million from 4Q18.
- Retail deposits totaled $23.4
billion at March 31, 2019
compared to $23.1 billion at
December 31, 2018.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 0.52% at
March 31, 2019 compared to 0.57% at
December 31, 2018.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.81% at March 31, 2019 compared to 0.85% at December 31, 2018.
Conference Call
On April 18, 2019, 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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|
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|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in millions,
except per common share data)
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
Earnings
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
340.0
|
$
|
339.5
|
$
|
313.0
|
$
|
307.8
|
$
|
302.1
|
|
Net interest
income
|
|
332.8
|
|
332.6
|
|
306.4
|
|
301.2
|
|
295.8
|
|
Provision for
loan losses
|
|
5.6
|
|
9.9
|
|
8.2
|
|
6.5
|
|
5.4
|
|
Non-interest
income (1)
|
|
94.6
|
|
88.7
|
|
92.3
|
|
94.9
|
|
90.4
|
|
Non-interest
expense (1)
|
|
277.2
|
|
262.7
|
|
241.3
|
|
248.6
|
|
243.5
|
|
Income before
income tax expense
|
|
144.6
|
|
148.7
|
|
149.2
|
|
141.0
|
|
137.3
|
|
Net
income
|
|
114.6
|
|
132.9
|
|
117.0
|
|
110.2
|
|
107.9
|
|
Net income
available to common shareholders (1)
|
|
111.1
|
|
129.4
|
|
113.5
|
|
106.7
|
|
104.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (2)
|
|
3.20
|
%
|
3.17
|
%
|
3.15
|
%
|
3.10
|
%
|
3.05
|
%
|
Return on
average assets (1), (2)
|
|
0.96
|
|
1.11
|
|
1.06
|
|
1.00
|
|
0.98
|
|
Return on
average common equity (2)
|
|
7.0
|
|
8.3
|
|
8.0
|
|
7.6
|
|
7.5
|
|
Return on
average tangible common equity (1), (2)
|
|
13.0
|
|
14.9
|
|
14.5
|
|
13.9
|
|
13.8
|
|
Efficiency
ratio (1)
|
|
57.3
|
|
55.1
|
|
56.7
|
|
58.4
|
|
59.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
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|
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|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.30
|
$
|
0.35
|
$
|
0.33
|
$
|
0.31
|
$
|
0.31
|
|
Diluted (1)
|
|
0.30
|
|
0.35
|
|
0.33
|
|
0.31
|
|
0.30
|
|
Dividends paid
per common share
|
|
0.1750
|
|
0.1750
|
|
0.1750
|
|
0.1750
|
|
0.1725
|
|
Common
dividend payout ratio (1)
|
|
58.6
|
%
|
50.3
|
%
|
52.9
|
%
|
56.2
|
%
|
56.3
|
%
|
Book value per
common share (end of period)
|
$
|
17.13
|
$
|
16.95
|
$
|
16.69
|
$
|
16.56
|
$
|
16.43
|
|
Tangible book
value per common share (end of period) (1)
|
|
9.35
|
|
9.23
|
|
9.19
|
|
9.02
|
|
8.93
|
|
Stock
price:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
18.03
|
|
17.46
|
|
19.00
|
|
19.37
|
|
20.26
|
|
Low
|
|
14.25
|
|
13.66
|
|
16.95
|
|
18.00
|
|
18.18
|
|
Close (end of period)
|
|
16.44
|
|
14.43
|
|
17.12
|
|
18.09
|
|
18.66
|
|
Common shares
(end of period) (in millions)
|
|
372.18
|
|
371.02
|
|
342.36
|
|
341.59
|
|
341.01
|
|
Weighted
average diluted common shares (in millions)
|
374.09
|
|
372.83
|
|
345.04
|
|
344.47
|
|
344.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
(2)
Annualized.
|
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|
People's United
Financial, Inc.
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FINANCIAL
HIGHLIGHTS - Continued
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|
|
As of and for the
Three Months Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March
31,
|
|
(dollars in
millions)
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
48,092
|
$
|
47,877
|
$
|
44,133
|
$
|
44,575
|
$
|
44,101
|
|
Loans
|
|
35,515
|
|
35,241
|
|
32,199
|
|
32,512
|
|
32,104
|
|
Securities
|
|
7,175
|
|
7,233
|
|
7,385
|
|
7,324
|
|
7,173
|
|
Short-term investments
|
|
106
|
|
266
|
|
128
|
|
253
|
|
470
|
|
Allowance for loan losses
|
|
241
|
|
240
|
|
238
|
|
237
|
|
235
|
|
Goodwill and other acquisition-related intangible assets
|
2,896
|
|
2,866
|
|
2,569
|
|
2,574
|
|
2,555
|
|
Deposits
|
|
36,901
|
|
36,159
|
|
33,210
|
|
32,468
|
|
32,894
|
|
Borrowings
|
|
2,860
|
|
3,593
|
|
3,392
|
|
4,639
|
|
3,877
|
|
Notes and debentures
|
|
902
|
|
896
|
|
886
|
|
889
|
|
892
|
|
Stockholders' equity
|
|
6,621
|
|
6,534
|
|
5,959
|
|
5,900
|
|
5,845
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
36,479
|
|
35,910
|
|
33,181
|
|
33,369
|
|
32,833
|
|
People's United
Bank, N.A.
|
|
36,461
|
|
35,875
|
|
33,132
|
|
33,317
|
|
32,784
|
|
Non-performing assets (2)
|
|
167
|
|
186
|
|
173
|
|
187
|
|
174
|
|
Net loan charge-offs
|
|
5.1
|
|
7.5
|
|
7.0
|
|
5.0
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
35,046
|
$
|
35,016
|
$
|
32,166
|
$
|
32,116
|
$
|
32,096
|
|
Securities (3)
|
|
7,311
|
|
7,479
|
|
7,404
|
|
7,302
|
|
7,186
|
|
Short-term investments
|
|
203
|
|
292
|
|
193
|
|
267
|
|
366
|
|
Total earning assets
|
|
42,560
|
|
42,786
|
|
39,763
|
|
39,685
|
|
39,648
|
|
Total assets
|
|
47,800
|
|
47,721
|
|
44,245
|
|
44,110
|
|
44,011
|
|
Deposits
|
|
36,450
|
|
35,959
|
|
33,058
|
|
32,535
|
|
32,824
|
|
Borrowings
|
|
2,937
|
|
3,456
|
|
3,539
|
|
4,031
|
|
3,752
|
|
Notes and debentures
|
|
896
|
|
886
|
|
888
|
|
890
|
|
895
|
|
Total funding liabilities
|
|
40,284
|
|
40,302
|
|
37,485
|
|
37,456
|
|
37,471
|
|
Stockholders' equity
|
|
6,562
|
|
6,515
|
|
5,937
|
|
5,870
|
|
5,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
0.06
|
%
|
0.09
|
%
|
0.09
|
%
|
0.06
|
%
|
0.06
|
%
|
Non-performing assets to originated loans,
|
|
|
|
|
|
|
|
|
|
|
|
real estate owned and
repossessed assets (2)
|
|
0.54
|
|
0.61
|
|
0.57
|
|
0.62
|
|
0.58
|
|
Originated allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
(2)
|
|
0.76
|
|
0.77
|
|
0.78
|
|
0.77
|
|
0.78
|
|
Originated
non-performing loans (2)
|
|
157.0
|
|
140.9
|
|
147.9
|
|
138.4
|
|
149.3
|
|
Average stockholders' equity to average total assets
|
|
13.7
|
|
13.7
|
|
13.4
|
|
13.3
|
|
13.2
|
|
Stockholders' equity to total assets
|
|
13.8
|
|
13.6
|
|
13.5
|
|
13.2
|
|
13.3
|
|
Tangible common equity to tangible assets (4)
|
|
7.7
|
|
7.6
|
|
7.6
|
|
7.3
|
|
7.3
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.4
|
|
12.5
|
|
12.8
|
|
12.5
|
|
12.6
|
|
People's United
Bank, N.A.
|
|
12.9
|
|
13.2
|
|
13.6
|
|
13.4
|
|
12.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) March 31, 2019
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
|
|
|
|
|
|
|
|
|
March 31,
|
Dec. 31,
|
March 31,
|
(in
millions)
|
2019
|
2018
|
2018
|
Assets
|
|
|
|
Cash and due from
banks
|
$
508.5
|
$
665.7
|
$
402.2
|
Short-term
investments
|
106.0
|
266.3
|
470.3
|
Securities:
|
|
|
|
Trading debt
securities, at fair value
|
8.3
|
8.4
|
8.2
|
Equity
securities, at fair value
|
8.2
|
8.1
|
9.5
|
Debt
securities available-for-sale, at fair value
|
3,060.0
|
3,121.0
|
3,153.8
|
Debt
securities held-to-maturity, at amortized cost
|
3,823.4
|
3,792.3
|
3,696.3
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
275.6
|
303.4
|
305.2
|
Total securities
|
7,175.5
|
7,233.2
|
7,173.0
|
Loans
held-for-sale
|
7.8
|
19.5
|
10.4
|
Loans:
|
|
|
|
Commercial
real estate
|
11,591.2
|
11,649.6
|
10,810.4
|
Commercial and
industrial
|
9,354.7
|
9,088.9
|
8,574.1
|
Equipment
financing
|
4,466.1
|
4,339.2
|
3,887.9
|
Total Commercial Portfolio
|
25,412.0
|
25,077.7
|
23,272.4
|
Residential
mortgage
|
8,163.1
|
8,154.2
|
6,834.2
|
Home equity
and other consumer
|
1,940.1
|
2,009.5
|
1,997.8
|
Total Retail Portfolio
|
10,103.2
|
10,163.7
|
8,832.0
|
Total loans
|
35,515.2
|
35,241.4
|
32,104.4
|
Less allowance
for loan losses
|
(240.9)
|
(240.4)
|
(235.3)
|
Total loans, net
|
35,274.3
|
35,001.0
|
31,869.1
|
Goodwill and other
acquisition-related intangible assets
|
2,896.5
|
2,865.7
|
2,554.9
|
Bank-owned life
insurance
|
467.8
|
467.0
|
406.0
|
Premises and
equipment, net
|
255.8
|
267.3
|
250.0
|
Other
assets
|
1,399.7
|
1,091.6
|
964.6
|
Total assets
|
$
48,091.9
|
$
47,877.3
|
$
44,100.5
|
|
|
|
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
8,315.6
|
$
8,543.0
|
$
7,938.6
|
Savings
|
4,159.1
|
4,116.5
|
4,442.1
|
Interest-bearing checking and money market
|
17,130.0
|
16,583.3
|
15,257.6
|
Time
|
7,296.2
|
6,916.2
|
5,255.5
|
Total deposits
|
36,900.9
|
36,159.0
|
32,893.8
|
Borrowings:
|
|
|
|
Federal Home
Loan Bank advances
|
1,573.2
|
2,404.5
|
2,610.7
|
Federal funds
purchased
|
1,020.0
|
845.0
|
805.0
|
Customer
repurchase agreements
|
264.8
|
332.9
|
265.8
|
Other
borrowings
|
1.6
|
11.0
|
195.4
|
Total borrowings
|
2,859.6
|
3,593.4
|
3,876.9
|
Notes and
debentures
|
901.6
|
895.8
|
891.9
|
Other
liabilities
|
808.6
|
695.2
|
592.4
|
Total liabilities
|
41,470.7
|
41,343.4
|
38,255.0
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
Common
stock
|
4.7
|
4.7
|
4.4
|
Additional paid-in
capital
|
6,558.8
|
6,549.3
|
6,029.0
|
Retained
earnings
|
1,328.6
|
1,284.8
|
1,121.4
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(128.3)
|
(130.1)
|
(135.5)
|
Accumulated other
comprehensive loss
|
(224.6)
|
(256.8)
|
(255.8)
|
Treasury stock, at
cost
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
Total stockholders' equity
|
6,621.2
|
6,533.9
|
5,845.5
|
Total liabilities and stockholders' equity
|
$
48,091.9
|
$
47,877.3
|
$
44,100.5
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in millions, except
per common share data)
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
132.7
|
|
$
130.2
|
|
$
114.7
|
|
$
111.5
|
|
$
107.0
|
Commercial and
industrial
|
103.9
|
|
100.1
|
|
93.2
|
|
90.1
|
|
82.3
|
Equipment
financing
|
59.0
|
|
56.7
|
|
56.2
|
|
50.5
|
|
48.9
|
Residential
mortgage
|
70.7
|
|
70.2
|
|
56.0
|
|
55.3
|
|
54.7
|
Home equity
and other consumer
|
24.9
|
|
24.4
|
|
22.0
|
|
21.4
|
|
20.8
|
Total interest on loans
|
391.2
|
|
381.6
|
|
342.1
|
|
328.8
|
|
313.7
|
Securities
|
47.8
|
|
48.5
|
|
46.6
|
|
45.1
|
|
44.0
|
Short-term
investments
|
1.3
|
|
1.4
|
|
1.1
|
|
1.3
|
|
1.2
|
Loans
held-for-sale
|
0.2
|
|
0.3
|
|
0.2
|
|
0.2
|
|
0.2
|
Total interest and dividend income
|
440.5
|
|
431.8
|
|
390.0
|
|
375.4
|
|
359.1
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
81.2
|
|
70.6
|
|
56.9
|
|
47.3
|
|
41.3
|
Borrowings
|
17.7
|
|
20.0
|
|
18.2
|
|
18.5
|
|
14.2
|
Notes and
debentures
|
8.8
|
|
8.6
|
|
8.5
|
|
8.4
|
|
7.8
|
Total interest expense
|
107.7
|
|
99.2
|
|
83.6
|
|
74.2
|
|
63.3
|
Net interest income
|
332.8
|
|
332.6
|
|
306.4
|
|
301.2
|
|
295.8
|
Provision for loan
losses
|
5.6
|
|
9.9
|
|
8.2
|
|
6.5
|
|
5.4
|
Net interest income after provision for loan losses
|
327.2
|
|
322.7
|
|
298.2
|
|
294.7
|
|
290.4
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
25.2
|
|
26.9
|
|
24.9
|
|
24.3
|
|
23.8
|
Investment
management fees
|
16.5
|
|
16.4
|
|
17.4
|
|
17.2
|
|
17.7
|
Operating
lease income
|
12.7
|
|
12.0
|
|
11.0
|
|
11.2
|
|
10.7
|
Insurance
revenue
|
10.5
|
|
6.7
|
|
9.8
|
|
8.3
|
|
9.8
|
Commercial
banking lending fees
|
7.8
|
|
9.6
|
|
7.9
|
|
9.4
|
|
10.4
|
Cash
management fees
|
6.8
|
|
6.6
|
|
7.0
|
|
7.0
|
|
6.6
|
Brokerage
commissions
|
2.8
|
|
3.3
|
|
3.2
|
|
3.2
|
|
3.1
|
Customer
interest rate swap income, net
|
2.3
|
|
6.3
|
|
2.8
|
|
4.0
|
|
1.5
|
Net security
(losses) gains (1)
|
-
|
|
(10.0)
|
|
0.1
|
|
-
|
|
0.1
|
Other
non-interest income
|
10.0
|
|
10.9
|
|
8.2
|
|
10.3
|
|
6.7
|
Total non-interest income
|
94.6
|
|
88.7
|
|
92.3
|
|
94.9
|
|
90.4
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
155.4
|
|
151.5
|
|
135.7
|
|
135.0
|
|
140.7
|
Occupancy and
equipment
|
44.3
|
|
44.6
|
|
41.6
|
|
40.8
|
|
41.2
|
Professional
and outside services
|
20.0
|
|
21.4
|
|
17.0
|
|
20.6
|
|
18.6
|
Operating
lease expense
|
9.4
|
|
9.8
|
|
8.9
|
|
8.7
|
|
9.0
|
Regulatory
assessments
|
7.0
|
|
7.4
|
|
10.0
|
|
9.9
|
|
10.6
|
Amortization
of other acquisition-related intangible assets
|
6.7
|
|
6.9
|
|
4.9
|
|
4.9
|
|
5.1
|
Other
non-interest expense
|
34.4
|
|
21.1
|
|
23.2
|
|
28.7
|
|
18.3
|
Total non-interest expense (1)
|
277.2
|
|
262.7
|
|
241.3
|
|
248.6
|
|
243.5
|
Income before income tax expense
|
144.6
|
|
148.7
|
|
149.2
|
|
141.0
|
|
137.3
|
Income tax expense
(1)
|
30.0
|
|
15.8
|
|
32.2
|
|
30.8
|
|
29.4
|
Net income
|
114.6
|
|
132.9
|
|
117.0
|
|
110.2
|
|
107.9
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
Net income available to common shareholders
|
$
111.1
|
|
$
129.4
|
|
$
113.5
|
|
$
106.7
|
|
$
104.4
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.30
|
|
$
0.35
|
|
$
0.33
|
|
$
0.31
|
|
$
0.31
|
Diluted
|
0.30
|
|
0.35
|
|
0.33
|
|
0.31
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $10.0
million of security losses for the three months ended December 31,
2018, which are considered non-operating,
|
incurred as a tax planning
strategy in response to tax reform-related benefits recognized in
the period. Total non-interest
|
expense includes $15.0
million, $8.0 million, $0.5 million and $2.9 million of
non-operating expenses for the three months ended
|
March 31, 2019,
December 31, 2018, September 30, 2018 and June 30, 2018,
respectively. Income tax expense includes a
|
$9.2 million benefit
recognized in connection with tax reform, which is considered
non-operating, for the three months ended
|
December 31, 2018. See
Non-GAAP Financial Measures and Reconciliation to GAAP.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
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
|
$
202.8
|
$
1.3
|
2.60%
|
|
$
291.6
|
$
1.4
|
2.02%
|
|
$
366.4
|
$
1.2
|
1.35%
|
Securities
(2)
|
7,310.6
|
52.4
|
2.87
|
|
7,478.7
|
52.9
|
2.83
|
|
7,186.1
|
48.0
|
2.67
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
11,588.3
|
132.7
|
4.58
|
|
11,688.1
|
130.2
|
4.45
|
|
10,934.2
|
107.0
|
3.91
|
Commercial and
industrial
|
8,974.0
|
106.5
|
4.74
|
|
8,880.3
|
102.6
|
4.62
|
|
8,418.6
|
84.6
|
4.02
|
Equipment
financing
|
4,357.7
|
59.0
|
5.42
|
|
4,243.2
|
56.7
|
5.34
|
|
3,870.6
|
48.9
|
5.06
|
Residential
mortgage
|
8,153.6
|
70.9
|
3.48
|
|
8,165.4
|
70.5
|
3.46
|
|
6,837.1
|
54.9
|
3.21
|
Home equity
and other consumer
|
1,972.9
|
24.9
|
5.05
|
|
2,038.5
|
24.4
|
4.80
|
|
2,035.0
|
20.8
|
4.09
|
Total loans
|
35,046.5
|
394.0
|
4.50
|
|
35,015.5
|
384.4
|
4.39
|
|
32,095.5
|
316.2
|
3.94
|
Total earning assets
|
42,559.9
|
$ 447.7
|
4.21%
|
|
42,785.8
|
$ 438.7
|
4.10%
|
|
39,648.0
|
$ 365.4
|
3.69%
|
Other
assets
|
5,240.3
|
|
|
|
4,935.3
|
|
|
|
4,363.3
|
|
|
Total assets
|
$
47,800.2
|
|
|
|
$
47,721.1
|
|
|
|
$
44,011.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
8,301.3
|
$
-
|
- %
|
|
$
8,576.4
|
$
-
|
- %
|
|
$
7,796.7
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
21,018.0
|
48.8
|
0.93
|
|
20,621.7
|
41.7
|
0.81
|
|
19,642.6
|
24.9
|
0.51
|
Time
|
7,130.8
|
32.4
|
1.82
|
|
6,761.1
|
28.9
|
1.71
|
|
5,384.5
|
16.4
|
1.22
|
Total deposits
|
36,450.1
|
81.2
|
0.89
|
|
35,959.2
|
70.6
|
0.79
|
|
32,823.8
|
41.3
|
0.50
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
1,890.1
|
12.4
|
2.64
|
|
2,371.9
|
14.9
|
2.51
|
|
2,677.1
|
10.9
|
1.63
|
Federal funds
purchased
|
751.9
|
4.7
|
2.52
|
|
761.4
|
4.5
|
2.38
|
|
608.3
|
2.3
|
1.53
|
Customer
repurchase agreements
|
286.2
|
0.5
|
0.65
|
|
285.1
|
0.4
|
0.56
|
|
262.6
|
0.1
|
0.18
|
Other
borrowings
|
9.0
|
0.1
|
2.43
|
|
37.5
|
0.2
|
2.26
|
|
203.7
|
0.9
|
1.65
|
Total borrowings
|
2,937.2
|
17.7
|
2.41
|
|
3,455.9
|
20.0
|
2.32
|
|
3,751.7
|
14.2
|
1.51
|
Notes and
debentures
|
896.3
|
8.8
|
3.93
|
|
886.4
|
8.6
|
3.90
|
|
895.2
|
7.8
|
3.48
|
Total funding liabilities
|
40,283.6
|
$ 107.7
|
1.07%
|
|
40,301.5
|
$
99.2
|
0.99%
|
|
37,470.7
|
$
63.3
|
0.68%
|
Other
liabilities
|
954.3
|
|
|
|
904.2
|
|
|
|
720.1
|
|
|
Total liabilities
|
41,237.9
|
|
|
|
41,205.7
|
|
|
|
38,190.8
|
|
|
Stockholders'
equity
|
6,562.3
|
|
|
|
6,515.4
|
|
|
|
5,820.5
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
47,800.2
|
|
|
|
$
47,721.1
|
|
|
|
$
44,011.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 340.0
|
3.14%
|
|
|
$ 339.5
|
3.11%
|
|
|
$ 302.1
|
3.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.20%
|
|
|
|
3.17%
|
|
|
|
3.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $7.2 million, $6.9 million and $6.3
million for the three months ended
|
March 31, 2019,
December 31, 2018 and March 31, 2018, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June
30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
33.6
|
$
|
33.5
|
$
|
17.2
|
$
|
20.3
|
$
|
21.0
|
|
Commercial and
industrial
|
|
30.3
|
|
38.0
|
|
44.9
|
|
50.1
|
|
34.6
|
|
Equipment
financing
|
|
37.5
|
|
42.0
|
|
49.3
|
|
49.2
|
|
47.7
|
|
Total
|
|
101.4
|
|
113.5
|
|
111.4
|
|
119.6
|
|
103.3
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
35.4
|
|
38.9
|
|
32.0
|
|
33.5
|
|
35.4
|
|
Home
equity
|
|
14.1
|
|
15.3
|
|
14.6
|
|
15.1
|
|
16.1
|
|
Other
consumer
|
|
-
|
|
-
|
|
0.1
|
|
-
|
|
-
|
|
Total
|
|
49.5
|
|
54.2
|
|
46.7
|
|
48.6
|
|
51.5
|
|
Total originated non-performing loans (1)
|
|
150.9
|
|
167.7
|
|
158.1
|
|
168.2
|
|
154.8
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
4.1
|
|
8.7
|
|
8.7
|
|
9.3
|
|
10.6
|
|
Residential
|
|
6.9
|
|
5.5
|
|
4.4
|
|
5.8
|
|
6.8
|
|
Total REO
|
|
11.0
|
|
14.2
|
|
13.1
|
|
15.1
|
|
17.4
|
|
Repossessed
assets
|
|
5.6
|
|
3.9
|
|
2.0
|
|
3.7
|
|
1.8
|
|
Total non-performing assets
|
$
|
167.5
|
$
|
185.8
|
$
|
173.2
|
$
|
187.0
|
$
|
174.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount)
|
$
|
42.6
|
$
|
50.1
|
$
|
32.3
|
$
|
26.7
|
$
|
30.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.49
|
%
|
0.55
|
%
|
0.53
|
%
|
0.56
|
%
|
0.52
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
|
0.54
|
|
0.61
|
|
0.57
|
|
0.62
|
|
0.58
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
4.23
|
|
4.76
|
|
4.78
|
|
5.25
|
|
4.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported
net of government guarantees totaling $1.4 million at March 31,
2019, $1.9 million at December 31, 2018,
|
$2.5 million at
September 30, 2018, $2.6 million at June 30, 2018 and $3.0 million
at March 31, 2018.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
|
236.3
|
$
|
233.9
|
$
|
232.8
|
$
|
231.3
|
$
|
230.8
|
|
Charge-offs
|
|
(5.6)
|
|
(7.3)
|
|
(6.4)
|
|
(4.7)
|
|
(4.4)
|
|
Recoveries
|
|
2.2
|
|
1.3
|
|
1.0
|
|
1.9
|
|
1.4
|
|
Net loan charge-offs
|
|
(3.4)
|
|
(6.0)
|
|
(5.4)
|
|
(2.8)
|
|
(3.0)
|
|
Provision for
loan losses
|
|
4.0
|
|
8.4
|
|
6.5
|
|
4.3
|
|
3.5
|
|
Balance at end of period
|
|
236.9
|
|
236.3
|
|
233.9
|
|
232.8
|
|
231.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
4.1
|
|
4.1
|
|
4.0
|
|
4.0
|
|
3.6
|
|
Charge-offs
|
|
(1.9)
|
|
(1.8)
|
|
(2.0)
|
|
(2.5)
|
|
(1.8)
|
|
Recoveries
|
|
0.2
|
|
0.3
|
|
0.4
|
|
0.3
|
|
0.3
|
|
Net loan charge-offs
|
|
(1.7)
|
|
(1.5)
|
|
(1.6)
|
|
(2.2)
|
|
(1.5)
|
|
Provision for
loan losses
|
|
1.6
|
|
1.5
|
|
1.7
|
|
2.2
|
|
1.9
|
|
Balance at end of period
|
|
4.0
|
|
4.1
|
|
4.1
|
|
4.0
|
|
4.0
|
|
Total allowance for loan losses
|
$
|
240.9
|
$
|
240.4
|
$
|
238.0
|
$
|
236.8
|
$
|
235.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated commercial
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
0.91
|
%
|
0.93
|
%
|
0.94
|
%
|
0.93
|
%
|
0.94
|
%
|
Originated retail
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated retail loans
|
|
0.37
|
|
0.36
|
|
0.36
|
|
0.36
|
|
0.36
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
|
|
0.76
|
|
0.77
|
|
0.78
|
|
0.77
|
|
0.78
|
|
Originated non-performing loans
|
|
157.0
|
|
140.9
|
|
147.9
|
|
138.4
|
|
149.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
1.1
|
$
|
1.4
|
$
|
1.7
|
$
|
0.7
|
$
|
0.5
|
|
Commercial and
industrial
|
|
1.7
|
|
1.4
|
|
2.2
|
|
1.7
|
|
1.7
|
|
Equipment
financing
|
|
2.2
|
|
4.4
|
|
2.9
|
|
2.6
|
|
1.6
|
|
Total
|
|
5.0
|
|
7.2
|
|
6.8
|
|
5.0
|
|
3.8
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
0.1
|
|
-
|
|
0.1
|
|
(0.1)
|
|
0.2
|
|
Home
equity
|
|
(0.2)
|
|
0.1
|
|
(0.1)
|
|
-
|
|
0.4
|
|
Other
consumer
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.1
|
|
0.1
|
|
Total
|
|
0.1
|
|
0.3
|
|
0.2
|
|
-
|
|
0.7
|
|
Total net loan charge-offs
|
$
|
5.1
|
$
|
7.5
|
$
|
7.0
|
$
|
5.0
|
$
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.06
|
%
|
0.09
|
%
|
0.09
|
%
|
0.06
|
%
|
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
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
Total non-interest
expense
|
|
$
277.2
|
|
$
262.7
|
|
$
241.3
|
|
$
248.6
|
|
$
243.5
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(15.0)
|
|
(8.0)
|
|
(0.5)
|
|
(2.9)
|
|
-
|
Total
|
|
(15.0)
|
|
(8.0)
|
|
(0.5)
|
|
(2.9)
|
|
-
|
Operating non-interest expense
|
|
262.2
|
|
254.7
|
|
240.8
|
|
245.7
|
|
243.5
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(9.4)
|
|
(9.8)
|
|
(8.9)
|
|
(8.7)
|
|
(9.0)
|
Amortization of other
acquisition-related
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(6.7)
|
|
(6.9)
|
|
(4.9)
|
|
(4.9)
|
|
(5.1)
|
Other (1)
|
|
(1.8)
|
|
(1.6)
|
|
(1.8)
|
|
(1.7)
|
|
(1.3)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
244.3
|
|
$
236.4
|
|
$
225.2
|
|
$
230.4
|
|
$
228.1
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
340.0
|
|
$
339.5
|
|
$
313.0
|
|
$
307.8
|
|
$
302.1
|
Total non-interest
income
|
|
94.6
|
|
88.7
|
|
92.3
|
|
94.9
|
|
90.4
|
Total revenues
|
|
434.6
|
|
428.2
|
|
405.3
|
|
402.7
|
|
392.5
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(9.4)
|
|
(9.8)
|
|
(8.9)
|
|
(8.7)
|
|
(9.0)
|
BOLI FTE
adjustment
|
|
0.6
|
|
0.5
|
|
0.6
|
|
0.4
|
|
0.4
|
Net security
losses (gains)
|
|
-
|
|
10.0
|
|
(0.1)
|
|
-
|
|
(0.1)
|
Other
(2)
|
|
0.3
|
|
-
|
|
-
|
|
-
|
|
-
|
Total revenues for efficiency ratio
|
|
$
426.1
|
|
$
428.9
|
|
$
396.9
|
|
$
394.4
|
|
$
383.8
|
Efficiency ratio
|
|
57.3%
|
|
55.1%
|
|
56.7%
|
|
58.4%
|
|
59.4%
|
|
|
|
|
|
|
|
|
|
|
|
(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 total revenues for purposes
of calculating the efficiency
|
ratio
include, as applicable, asset write-offs and gains associated with
the sale of branch locations.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in millions,
except per common share data)
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
Net income available
to common shareholders
|
$
111.1
|
|
$
129.4
|
|
$
113.5
|
|
$
106.7
|
|
$
104.4
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
15.0
|
|
8.0
|
|
0.5
|
|
2.9
|
|
-
|
Security
losses associated with tax reform (1)
|
-
|
|
10.0
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
15.0
|
|
18.0
|
|
0.5
|
|
2.9
|
|
-
|
Tax effect
(2)
|
|
(3.1)
|
|
(13.2)
|
|
(0.2)
|
|
(0.6)
|
|
-
|
Total adjustments, net of tax
|
|
11.9
|
|
4.8
|
|
0.3
|
|
2.3
|
|
-
|
Operating earnings
|
|
$
123.0
|
|
$
134.2
|
|
$
113.8
|
|
$
109.0
|
|
$
104.4
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.30
|
|
$
0.35
|
|
$
0.33
|
|
$
0.31
|
|
$
0.30
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.03
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
Security
losses associated with tax reform
|
|
-
|
|
0.02
|
|
-
|
|
-
|
|
-
|
Tax benefit
associated with tax reform
|
|
-
|
|
(0.02)
|
|
-
|
|
-
|
|
-
|
Total adjustments per common share
|
|
0.03
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
Operating EPS
|
|
$
0.33
|
|
$
0.36
|
|
$
0.33
|
|
$
0.32
|
|
$
0.30
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 47,800
|
|
$ 47,721
|
|
$ 44,245
|
|
$ 44,110
|
|
$
44,011
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
1.03%
|
|
1.12%
|
|
1.03%
|
|
0.99%
|
|
0.95%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Security losses
incurred as a tax planning strategy in response to a tax
reform-related benefit are considered
|
non-operating.
|
(2) Includes a $9.2
million benefit recognized in connection with tax reform for the
three months ended
|
December 31,
2018.
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
Operating
earnings
|
|
$
123.0
|
|
$
134.2
|
|
$
113.8
|
|
$
109.0
|
|
$
104.4
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
6,562
|
|
$
6,515
|
|
$
5,937
|
|
$
5,870
|
|
$
5,820
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
6,318
|
|
6,271
|
|
5,693
|
|
5,626
|
|
5,576
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible
assets
|
|
2,900
|
|
2,807
|
|
2,572
|
|
2,554
|
|
2,558
|
Average tangible
common equity
|
|
$
3,418
|
|
$
3,464
|
|
$
3,121
|
|
$
3,072
|
|
$
3,018
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
14.4%
|
|
15.5%
|
|
14.6%
|
|
14.2%
|
|
13.8%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
Common dividends
paid
|
|
$
65.2
|
|
$
65.1
|
|
$
60.0
|
|
$
59.9
|
|
$
58.8
|
Operating
earnings
|
|
$
123.0
|
|
$
134.2
|
|
$
113.8
|
|
$
109.0
|
|
$
104.4
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
53.0%
|
|
48.5%
|
|
52.7%
|
|
55.0%
|
|
56.3%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
Total stockholders'
equity
|
|
$
6,621
|
|
$
6,534
|
|
$
5,959
|
|
$
5,900
|
|
$
5,845
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Common
equity
|
|
6,377
|
|
6,290
|
|
5,715
|
|
5,656
|
|
5,601
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,896
|
|
2,866
|
|
2,569
|
|
2,574
|
|
2,555
|
Tangible common
equity
|
|
$
3,481
|
|
$
3,424
|
|
$
3,146
|
|
$
3,082
|
|
$
3,046
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 48,092
|
|
$ 47,877
|
|
$ 44,133
|
|
$ 44,575
|
|
$ 44,101
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,896
|
|
2,866
|
|
2,569
|
|
2,574
|
|
2,555
|
Tangible
assets
|
|
$ 45,196
|
|
$ 45,011
|
|
$ 41,564
|
|
$ 42,001
|
|
$ 41,546
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.7%
|
|
7.6%
|
|
7.6%
|
|
7.3%
|
|
7.3%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in millions, except
per common share data)
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
Tangible common
equity
|
|
$
3,481
|
|
$
3,424
|
|
$
3,146
|
|
$
3,082
|
|
$
3,046
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
467.38
|
|
466.32
|
|
437.74
|
|
437.06
|
|
436.56
|
Less: Shares
classified as treasury shares
|
|
89.01
|
|
89.03
|
|
89.02
|
|
89.02
|
|
89.02
|
Unallocated ESOP shares
|
|
6.19
|
|
6.27
|
|
6.36
|
|
6.45
|
|
6.53
|
Common
shares
|
|
372.18
|
|
371.02
|
|
342.36
|
|
341.59
|
|
341.01
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
9.35
|
|
$
9.23
|
|
$
9.19
|
|
$
9.02
|
|
$
8.93
|
View original
content:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-first-quarter-net-income-of-114-6-million-or-0-30-per-common-share-300834686.html
SOURCE People's United Financial, Inc.