BRIDGEPORT, Conn., July 18, 2019 /PRNewswire/ -- People's United
Financial, Inc. (NASDAQ: PBCT) today reported results for the
second quarter 2019. These results along with comparison periods
are summarized below:
($ in millions,
except per common share data)
|
|
|
|
Three Months
Ended
|
|
|
|
Jun. 30,
2019
|
|
Mar. 31,
2019
|
|
Jun. 30,
2018
|
|
|
|
|
|
|
|
|
Net income
|
|
$
133.2
|
|
$
114.6
|
|
$
110.2
|
Net income
available
|
|
129.7
|
|
111.1
|
|
106.7
|
|
to common
shareholders
|
|
|
|
|
Per common
share
|
|
0.33
|
|
0.30
|
|
0.31
|
|
|
|
|
|
|
|
|
Operating
earnings1
|
|
134.8
|
|
123.0
|
|
109.0
|
|
Per common
share
|
|
0.34
|
|
0.33
|
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
348.1
|
|
$
332.8
|
|
$
301.2
|
|
Net interest
margin
|
|
3.12%
|
|
3.20%
|
|
3.10%
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
106.3
|
|
94.6
|
|
94.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
$
278.4
|
|
$
277.2
|
|
$
248.6
|
Operating
non-interest expense1
|
271.9
|
|
262.2
|
|
245.7
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
55.8%
|
|
57.3%
|
|
58.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
Loans
|
|
$
38,229
|
|
$
35,046
|
|
$
32,116
|
Deposits
|
|
39,211
|
|
36,450
|
|
32,535
|
|
|
|
|
|
|
|
|
Period-end
balances
|
|
|
|
|
|
|
Loans
|
|
38,557
|
|
35,515
|
|
32,512
|
Deposits
|
|
39,467
|
|
36,901
|
|
32,468
|
|
|
|
|
|
|
|
|
1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
|
|
|
"We are pleased with the Company's performance in the second
quarter," said Jack Barnes, Chairman
and Chief Executive Officer. "Operating earnings of $135 million increased 24 percent from a year ago
and operating return on average common tangible equity of 14.6
percent improved 40 basis points. These strong results reflect the
success of our strategy of balancing organic growth with thoughtful
M&A. The integration of BSB Bancorp continues to progress very
well and we were excited to announce earlier this week the
financially attractive acquisition of United Financial Bancorp,
which strengthens our well-established presence in central
Connecticut and western
Massachusetts. We are also pleased
to announce the Company's Board of Directors approved the
repurchase of up to 20 million common shares, which further
demonstrates our commitment to returning capital to
shareholders."
"Higher revenues and our continued emphasis on controlling costs
generated a second quarter efficiency ratio of 55.8 percent, an
improvement of 260 basis points from the prior year quarter,"
stated David Rosato, Senior
Executive Vice President and Chief Financial Offer. "Total revenues
of $454 million grew 15 percent
year-over-year due to increases in both net interest income and
non-interest income. Net interest margin of 3.12 percent improved
two basis points from a year ago, but declined eight basis points
linked-quarter. While new business yields remained greater than the
total loan portfolio yield, the margin contracted due to higher
deposit costs and the addition of BSB Bancorp. Organic loan and
deposit period-end balances grew one percent and two percent
respectively, from March
31st. Loan growth was driven by strong results in
mortgage warehouse lending, healthcare and equipment finance,
partially offset by continued headwinds in commercial real estate
and planned reductions in residential mortgage balances. Deposits
benefited from higher than expected municipal balances and a large
short-term deposit from a commercial customer."
|
|
|
|
|
|
|
|
|
|
|
As of and for
the Three Months Ended
|
|
|
|
Jun. 30,
2019
|
|
Mar. 31,
2019
|
|
Jun. 30,
2018
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
|
0.05%
|
|
0.06%
|
|
0.06%
|
to average total
loans
|
|
|
|
Originated
non-performing loans
|
|
0.52%
|
|
0.49%
|
|
0.56%
|
as a percentage of
originated loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Returns
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets1
|
|
1.04%
|
|
0.96%
|
|
1.00%
|
Return on average
tangible common equity1
|
14.1%
|
|
13.0%
|
|
13.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
Tangible common
equity / tangible assets
|
7.7%
|
|
7.7%
|
|
7.3%
|
Tier 1
leverage
|
|
8.7%
|
|
8.8%
|
|
8.6%
|
Common equity tier
1
|
|
10.0%
|
|
10.2%
|
|
10.0%
|
Tier 1
risk-based
|
|
10.7%
|
|
10.8%
|
|
10.8%
|
Total
risk-based
|
|
12.0%
|
|
12.4%
|
|
12.5%
|
|
|
|
|
|
|
|
|
People's United Bank,
N.A.
|
|
|
|
|
|
|
Tier 1
leverage
|
|
|
8.9%
|
|
9.0%
|
|
9.1%
|
Common equity tier
1
|
|
|
10.9%
|
|
11.2%
|
|
11.4%
|
Tier 1
risk-based
|
|
|
10.9%
|
|
11.2%
|
|
11.4%
|
Total
risk-based
|
|
|
12.4%
|
|
12.9%
|
|
13.4%
|
|
|
|
|
|
|
|
|
1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
The Company's Board of Directors approved the repurchase of up
to 20 million shares of common stock. The share repurchases will be
made at the discretion of the Company following the close of the
United Financial Bancorp acquisition. The Board of Directors also
declared a $0.1775 per common share
quarterly dividend payable August 15,
2019 to shareholders of record on August 1, 2019. Based on the closing stock price
on July 17, 2019, the dividend yield
on People's United Financial common stock is 4.4 percent.
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
$51 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.
2Q 2019 Financial Highlights
Summary
- Net income totaled $133.2
million, or $0.33 per common
share.
-
- Net income available to common shareholders totaled
$129.7 million.
- Operating earnings totaled $134.8
million, or $0.34 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $348.1
million in 2Q19 compared to $332.8
million in 1Q19.
- Net interest margin decreased eight basis points from 1Q19 to
3.12% reflecting:
-
- Higher yields on the loan portfolio (increase of six basis
points).
- One additional calendar day in 2Q19 (increase of two basis
points).
- Higher rates on deposits and borrowings (decrease of 15 basis
points).
- Lower yields on the securities portfolio (decrease of one basis
point).
- Provision for loan losses totaled $7.6
million.
-
- Net loan charge-offs totaled $4.5
million.
- Net loan charge-off ratio of 0.05% in 2Q19.
- Non-interest income totaled $106.3
million in 2Q19 compared to $94.6
million in 1Q19.
-
- Customer interest rate swap income increased $4.6 million.
- Commercial banking lending fees increased $2.4 million.
- Bank service charges increased $1.2
million.
- Insurance revenue decreased $1.8
million.
- At June 30, 2019, assets under
discretionary management totaled $9.3
billion.
- Non-interest expense totaled $278.4
million in 2Q19 compared to $277.2
million in 1Q19.
-
- Operating non-interest expense totaled $271.9 million in 2Q19 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $1.5 million of merger-related expenses in both
2Q19 and 1Q 19, increased $5.9
million, primarily reflecting additional personnel costs
resulting from the BSB Bancorp acquisition, partially offset by
lower payroll and benefit-related costs in 2Q19.
- Professional and outside services expense, excluding
$4.7 million and $1.2 million of merger-related expenses in 2Q19
and 1Q19, respectively, increased $1.4
million.
- Intangible amortization expense increased $1.3 million.
- Other non-interest expense includes merger-related expenses of
$0.2 million and $11.9 million in 2Q19 and 1Q19,
respectively.
- The efficiency ratio was 55.8% for 2Q19 compared to 57.3% for
1Q19 and 58.4% for 2Q18 (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 20.9% for 2Q19 and 20.8% for
the first six months of 2019, compared to 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 $27.0
billion at June 30, 2019, an
increase of $1.6 billion from
March 31, 2019.
-
- Organic growth of $620
million.
- The mortgage warehouse portfolio increased $340 million.
- The equipment financing portfolio increased $145 million.
- The New York multifamily
portfolio decreased $59 million.
- Average commercial loans totaled $26.5
billion in 2Q19, an increase of $1.6
billion from 1Q19.
-
- The average mortgage warehouse portfolio increased $320 million.
- The average equipment financing portfolio increased
$153 million.
- The average New York
multifamily portfolio decreased $44
million.
- Commercial deposits totaled $15.1
billion at June 30, 2019
compared to $13.5 billion at
March 31, 2019.
-
- Increase reflects, in part, a $500
million short-term deposit.
- The ratio of originated non-performing commercial loans to
originated commercial loans was 0.48% at June 30, 2019 compared to 0.45% at March 31, 2019.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $117.6
million at June 30, 2019
compared to $111.1 million at
March 31, 2019.
- For the originated commercial loan portfolio, the allowance for
loan losses as a percentage of loans was 0.91% at both June 30, 2019 and March
31, 2019.
- The originated commercial allowance for loan losses represented
190% of originated non-performing commercial loans at June 30, 2019 compared to 202% at March 31, 2019.
Retail Banking
- Residential mortgage loans totaled $9.5
billion at June 30, 2019, an
increase of $1.4 billion from
March 31, 2019.
-
- Average residential mortgage loans totaled $9.7 billion in 2Q19, an increase of $1.5 billion from 1Q19.
- Home equity loans totaled $2.0
billion at June 30, 2019, an
increase of $114 million from
March 31, 2019.
-
- Average home equity loans totaled $2.0
billion in 2Q19, an increase of $105
million from 1Q19.
- Retail deposits totaled $24.4
billion at June 30, 2019
compared to $23.4 billion at
March 31, 2019.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 0.57% at
June 30, 2019 compared to 0.52% at
March 31, 2019.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.86% at June 30, 2019 compared to 0.81% at March 31, 2019.
Conference Call
On July 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.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial completed its acquisition of BSB Bancorp, Inc. effective
April 1, 2019. Accordingly, BSB Bancorp's
|
results of operations
are included beginning with the effective date, and prior period
results have not been restated to include
|
BSB
Bancorp.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(dollars in millions,
except per common share data)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
Earnings
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
355.4
|
$
|
340.0
|
$
|
339.5
|
$
|
313.0
|
$
|
307.8
|
|
Net interest
income
|
|
348.1
|
|
332.8
|
|
332.6
|
|
306.4
|
|
301.2
|
|
Provision for
loan losses
|
|
7.6
|
|
5.6
|
|
9.9
|
|
8.2
|
|
6.5
|
|
Non-interest
income (1)
|
|
106.3
|
|
94.6
|
|
88.7
|
|
92.3
|
|
94.9
|
|
Non-interest
expense (1)
|
|
278.4
|
|
277.2
|
|
262.7
|
|
241.3
|
|
248.6
|
|
Income before
income tax expense
|
|
168.4
|
|
144.6
|
|
148.7
|
|
149.2
|
|
141.0
|
|
Net
income
|
|
133.2
|
|
114.6
|
|
132.9
|
|
117.0
|
|
110.2
|
|
Net income
available to common shareholders (1)
|
|
129.7
|
|
111.1
|
|
129.4
|
|
113.5
|
|
106.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (2)
|
|
3.12
|
%
|
3.20
|
%
|
3.17
|
%
|
3.15
|
%
|
3.10
|
%
|
Return on
average assets (1), (2)
|
|
1.04
|
|
0.96
|
|
1.11
|
|
1.06
|
|
1.00
|
|
Return on
average common equity (2)
|
|
7.7
|
|
7.0
|
|
8.3
|
|
8.0
|
|
7.6
|
|
Return on
average tangible common equity (1), (2)
|
|
14.1
|
|
13.0
|
|
14.9
|
|
14.5
|
|
13.9
|
|
Efficiency
ratio (1)
|
|
55.8
|
|
57.3
|
|
55.1
|
|
56.7
|
|
58.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.33
|
$
|
0.30
|
$
|
0.35
|
$
|
0.33
|
$
|
0.31
|
|
Diluted (1)
|
|
0.33
|
|
0.30
|
|
0.35
|
|
0.33
|
|
0.31
|
|
Dividends paid
per common share
|
|
0.1775
|
|
0.1750
|
|
0.1750
|
|
0.1750
|
|
0.1750
|
|
Common
dividend payout ratio (1)
|
|
53.8
|
%
|
58.6
|
%
|
50.3
|
%
|
52.9
|
%
|
56.2
|
%
|
Book value per
common share (end of period)
|
$
|
17.34
|
$
|
17.13
|
$
|
16.95
|
$
|
16.69
|
$
|
16.56
|
|
Tangible book
value per common share (end of period) (1)
|
|
9.51
|
|
9.35
|
|
9.23
|
|
9.19
|
|
9.02
|
|
Stock
price:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
17.66
|
|
18.03
|
|
17.46
|
|
19.00
|
|
19.37
|
|
Low
|
|
15.24
|
|
14.25
|
|
13.66
|
|
16.95
|
|
18.00
|
|
Close (end of period)
|
|
16.78
|
|
16.44
|
|
14.43
|
|
17.12
|
|
18.09
|
|
Common shares
(end of period) (in millions)
|
|
392.24
|
|
372.18
|
|
371.02
|
|
342.36
|
|
341.59
|
|
Weighted
average diluted common shares (in millions)
|
|
394.57
|
|
374.09
|
|
372.83
|
|
345.04
|
|
344.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
|
|
|
|
(2)
Annualized.
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial completed its acquisition of BSB Bancorp, Inc. effective
April 1, 2019.
|
|
Accordingly, BSB
Bancorp's results of operations are included beginning with the
effective date,
|
|
and prior period
results have not been restated to include BSB Bancorp.
|
|
|
|
|
|
Six Months
Ended
|
|
June 30,
|
(dollars in millions,
except per common share data)
|
2019
|
|
2018
|
Earnings
Data:
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
695.4
|
$
|
609.9
|
|
Net interest
income
|
|
680.9
|
|
597.0
|
|
Provision for
loan losses
|
|
13.2
|
|
11.9
|
|
Non-interest
income
|
|
200.9
|
|
185.3
|
|
Non-interest
expense (1)
|
|
555.6
|
|
492.1
|
|
Income before
income tax expense
|
|
313.0
|
|
278.3
|
|
Net
income
|
|
247.8
|
|
218.1
|
|
Net income
available to common shareholders (1)
|
|
240.8
|
|
211.1
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
Net interest
margin (2)
|
|
3.15
|
%
|
3.07
|
%
|
Return on
average assets (1), (2)
|
|
1.00
|
|
0.99
|
|
Return on
average common equity (2)
|
|
7.4
|
|
7.5
|
|
Return on
average tangible common equity (1), (2)
|
|
13.5
|
|
13.9
|
|
Efficiency
ratio (1)
|
|
56.6
|
|
58.9
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
Basic
|
$
|
0.63
|
$
|
0.62
|
|
Diluted (1)
|
|
0.63
|
|
0.61
|
|
Dividends paid
per common share
|
|
0.3525
|
|
0.3475
|
|
Common
dividend payout ratio (1)
|
|
56.0
|
%
|
56.2
|
%
|
Book value per
common share (end of period)
|
$
|
17.34
|
$
|
16.56
|
|
Tangible book
value per common share (end of period) (1)
|
|
9.51
|
|
9.02
|
|
Stock
price:
|
|
|
|
|
|
High
|
|
18.03
|
|
20.26
|
|
Low
|
|
14.25
|
|
18.00
|
|
Close (end of period)
|
|
16.78
|
|
18.09
|
|
Common shares
(end of period) (in millions)
|
|
392.24
|
|
341.59
|
|
Weighted
average diluted common shares (in millions)
|
|
384.39
|
|
344.23
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
(2)
Annualized.
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial completed its acquisition of BSB Bancorp, Inc. effective
April 1, 2019. Accordingly, BSB Bancorp's
|
results of operations
are included beginning with the effective date, and prior period
results have not been restated to include
|
BSB
Bancorp.
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
51,622
|
$
|
48,092
|
$
|
47,877
|
$
|
44,133
|
$
|
44,575
|
|
Loans
|
|
38,557
|
|
35,515
|
|
35,241
|
|
32,199
|
|
32,512
|
|
Securities
|
|
7,086
|
|
7,176
|
|
7,233
|
|
7,385
|
|
7,324
|
|
Short-term investments
|
|
275
|
|
106
|
|
266
|
|
128
|
|
253
|
|
Allowance for loan losses
|
|
244
|
|
241
|
|
240
|
|
238
|
|
237
|
|
Goodwill and other acquisition-related intangible assets
|
3,073
|
|
2,897
|
|
2,866
|
|
2,569
|
|
2,574
|
|
Deposits
|
|
39,467
|
|
36,901
|
|
36,159
|
|
33,210
|
|
32,468
|
|
Borrowings
|
|
3,400
|
|
2,860
|
|
3,593
|
|
3,392
|
|
4,639
|
|
Notes and debentures
|
|
911
|
|
902
|
|
896
|
|
886
|
|
889
|
|
Stockholders' equity
|
|
7,046
|
|
6,621
|
|
6,534
|
|
5,959
|
|
5,900
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
39,128
|
|
36,466
|
|
35,910
|
|
33,181
|
|
33,369
|
|
People's United
Bank, N.A.
|
|
39,078
|
|
36,447
|
|
35,875
|
|
33,132
|
|
33,317
|
|
Non-performing assets (2)
|
|
179
|
|
167
|
|
186
|
|
173
|
|
187
|
|
Net loan charge-offs
|
|
4.5
|
|
5.1
|
|
7.5
|
|
7.0
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
38,229
|
$
|
35,046
|
$
|
35,016
|
$
|
32,166
|
$
|
32,116
|
|
Securities (3)
|
|
7,147
|
|
7,311
|
|
7,479
|
|
7,404
|
|
7,302
|
|
Short-term investments
|
|
214
|
|
203
|
|
292
|
|
193
|
|
267
|
|
Total earning assets
|
|
45,591
|
|
42,560
|
|
42,786
|
|
39,763
|
|
39,685
|
|
Total assets
|
|
51,088
|
|
47,800
|
|
47,721
|
|
44,245
|
|
44,110
|
|
Deposits
|
|
39,211
|
|
36,450
|
|
35,959
|
|
33,058
|
|
32,535
|
|
Borrowings
|
|
3,146
|
|
2,937
|
|
3,456
|
|
3,539
|
|
4,031
|
|
Notes and debentures
|
|
904
|
|
896
|
|
886
|
|
888
|
|
890
|
|
Total funding liabilities
|
|
43,261
|
|
40,284
|
|
40,302
|
|
37,485
|
|
37,456
|
|
Stockholders' equity
|
|
6,978
|
|
6,562
|
|
6,515
|
|
5,937
|
|
5,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
0.05
|
%
|
0.06
|
%
|
0.09
|
%
|
0.09
|
%
|
0.06
|
%
|
Non-performing assets to originated loans,
|
|
|
|
|
|
|
|
|
|
|
|
real estate owned and
repossessed assets (2)
|
|
0.56
|
|
0.54
|
|
0.61
|
|
0.57
|
|
0.62
|
|
Originated allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
(2)
|
|
0.76
|
|
0.76
|
|
0.77
|
|
0.78
|
|
0.77
|
|
Originated
non-performing loans (2)
|
|
146.0
|
|
157.0
|
|
140.9
|
|
147.9
|
|
138.4
|
|
Average stockholders' equity to average total assets
|
|
13.7
|
|
13.7
|
|
13.7
|
|
13.4
|
|
13.3
|
|
Stockholders' equity to total assets
|
|
13.6
|
|
13.8
|
|
13.6
|
|
13.5
|
|
13.2
|
|
Tangible common equity to tangible assets (4)
|
|
7.7
|
|
7.7
|
|
7.6
|
|
7.6
|
|
7.3
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.0
|
|
12.4
|
|
12.5
|
|
12.8
|
|
12.5
|
|
People's United
Bank, N.A.
|
|
12.4
|
|
12.9
|
|
13.2
|
|
13.6
|
|
13.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) June 30, 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
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
March 31,
|
Dec. 31,
|
June 30,
|
(in
millions)
|
2019
|
2019
|
2018
|
2018
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
505.9
|
$
508.5
|
$
665.7
|
$
462.7
|
Short-term
investments
|
274.8
|
106.0
|
266.3
|
253.1
|
Securities:
|
|
|
|
|
Trading debt
securities, at fair value
|
9.3
|
8.3
|
8.4
|
8.2
|
Equity
securities, at fair value
|
8.5
|
8.2
|
8.1
|
9.9
|
Debt
securities available-for-sale, at fair value
|
2,971.2
|
3,060.0
|
3,121.0
|
3,245.1
|
Debt
securities held-to-maturity, at amortized cost
|
3,807.5
|
3,823.4
|
3,792.3
|
3,718.7
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
289.4
|
275.6
|
303.4
|
342.2
|
Total securities
|
7,085.9
|
7,175.5
|
7,233.2
|
7,324.1
|
Loans
held-for-sale
|
17.4
|
7.8
|
19.5
|
17.1
|
Loans:
|
|
|
|
|
Commercial
real estate
|
12,230.7
|
11,591.2
|
11,649.6
|
10,761.1
|
Commercial and
industrial
|
10,121.8
|
9,354.7
|
9,088.9
|
8,823.3
|
Equipment
financing
|
4,611.0
|
4,466.1
|
4,339.2
|
4,103.9
|
Total Commercial Portfolio
|
26,963.5
|
25,412.0
|
25,077.7
|
23,688.3
|
Residential
mortgage
|
9,532.6
|
8,163.1
|
8,154.2
|
6,866.2
|
Home equity
and other consumer
|
2,060.6
|
1,940.1
|
2,009.5
|
1,957.5
|
Total Retail Portfolio
|
11,593.2
|
10,103.2
|
10,163.7
|
8,823.7
|
Total loans
|
38,556.7
|
35,515.2
|
35,241.4
|
32,512.0
|
Less allowance
for loan losses
|
(244.0)
|
(240.9)
|
(240.4)
|
(236.8)
|
Total loans, net
|
38,312.7
|
35,274.3
|
35,001.0
|
32,275.2
|
Goodwill and other
acquisition-related intangible assets
|
3,072.9
|
2,896.5
|
2,865.7
|
2,573.8
|
Bank-owned life
insurance
|
504.4
|
467.8
|
467.0
|
407.2
|
Premises and
equipment, net
|
261.0
|
255.8
|
267.3
|
246.3
|
Other
assets
|
1,587.5
|
1,399.7
|
1,091.6
|
1,015.0
|
Total assets
|
$
51,622.5
|
$
48,091.9
|
$
47,877.3
|
$
44,574.5
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
8,747.2
|
$
8,315.6
|
$
8,543.0
|
$
8,002.4
|
Savings
|
4,847.4
|
4,159.1
|
4,116.5
|
4,184.9
|
Interest-bearing checking and money market
|
17,424.8
|
17,130.0
|
16,583.3
|
14,659.4
|
Time
|
8,447.9
|
7,296.2
|
6,916.2
|
5,621.5
|
Total deposits
|
39,467.3
|
36,900.9
|
36,159.0
|
32,468.2
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,054.4
|
1,573.2
|
2,404.5
|
3,510.1
|
Federal funds
purchased
|
1,110.0
|
1,020.0
|
845.0
|
855.0
|
Customer
repurchase agreements
|
235.2
|
264.8
|
332.9
|
254.9
|
Other
borrowings
|
-
|
1.6
|
11.0
|
19.1
|
Total borrowings
|
3,399.6
|
2,859.6
|
3,593.4
|
4,639.1
|
Notes and
debentures
|
911.5
|
901.6
|
895.8
|
888.7
|
Other
liabilities
|
797.9
|
808.6
|
695.2
|
678.3
|
Total liabilities
|
44,576.3
|
41,470.7
|
41,343.4
|
38,674.3
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
244.1
|
Common
stock
|
4.9
|
4.7
|
4.7
|
4.4
|
Additional paid-in
capital
|
6,890.7
|
6,558.8
|
6,549.3
|
6,040.3
|
Retained
earnings
|
1,388.1
|
1,328.6
|
1,284.8
|
1,167.9
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(126.5)
|
(128.3)
|
(130.1)
|
(133.7)
|
Accumulated other
comprehensive loss
|
(193.0)
|
(224.6)
|
(256.8)
|
(260.7)
|
Treasury stock, at
cost
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
Total stockholders' equity
|
7,046.2
|
6,621.2
|
6,533.9
|
5,900.2
|
Total liabilities and stockholders' equity
|
$
51,622.5
|
$
48,091.9
|
$
47,877.3
|
$
44,574.5
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
(in millions, except
per common share data)
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
139.9
|
|
$
132.7
|
|
$
130.2
|
|
$
114.7
|
|
$
111.5
|
Commercial and
industrial
|
111.4
|
|
103.9
|
|
100.1
|
|
93.2
|
|
90.1
|
Equipment
financing
|
62.8
|
|
59.0
|
|
56.7
|
|
56.2
|
|
50.5
|
Residential
mortgage
|
85.5
|
|
70.7
|
|
70.2
|
|
56.0
|
|
55.3
|
Home equity
and other consumer
|
25.7
|
|
24.9
|
|
24.4
|
|
22.0
|
|
21.4
|
Total interest on loans
|
425.3
|
|
391.2
|
|
381.6
|
|
342.1
|
|
328.8
|
Securities
|
46.2
|
|
47.8
|
|
48.5
|
|
46.6
|
|
45.1
|
Short-term
investments
|
1.2
|
|
1.3
|
|
1.4
|
|
1.1
|
|
1.3
|
Loans
held-for-sale
|
0.1
|
|
0.2
|
|
0.3
|
|
0.2
|
|
0.2
|
Total interest and dividend income
|
472.8
|
|
440.5
|
|
431.8
|
|
390.0
|
|
375.4
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
96.6
|
|
81.2
|
|
70.6
|
|
56.9
|
|
47.3
|
Borrowings
|
19.3
|
|
17.7
|
|
20.0
|
|
18.2
|
|
18.5
|
Notes and
debentures
|
8.8
|
|
8.8
|
|
8.6
|
|
8.5
|
|
8.4
|
Total interest expense
|
124.7
|
|
107.7
|
|
99.2
|
|
83.6
|
|
74.2
|
Net interest income
|
348.1
|
|
332.8
|
|
332.6
|
|
306.4
|
|
301.2
|
Provision for loan
losses
|
7.6
|
|
5.6
|
|
9.9
|
|
8.2
|
|
6.5
|
Net interest income after provision for loan losses
|
340.5
|
|
327.2
|
|
322.7
|
|
298.2
|
|
294.7
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
26.4
|
|
25.2
|
|
26.9
|
|
24.9
|
|
24.3
|
Investment
management fees
|
17.1
|
|
16.5
|
|
16.4
|
|
17.4
|
|
17.2
|
Operating
lease income
|
12.7
|
|
12.7
|
|
12.0
|
|
11.0
|
|
11.2
|
Commercial
banking lending fees
|
10.2
|
|
7.8
|
|
9.6
|
|
7.9
|
|
9.4
|
Insurance
revenue
|
8.7
|
|
10.5
|
|
6.7
|
|
9.8
|
|
8.3
|
Customer
interest rate swap income, net
|
7.6
|
|
3.0
|
|
6.3
|
|
2.8
|
|
4.0
|
Cash
management fees
|
7.2
|
|
6.8
|
|
6.6
|
|
7.0
|
|
7.0
|
Brokerage
commissions
|
2.6
|
|
2.8
|
|
3.3
|
|
3.2
|
|
3.2
|
Net security
gains (losses) (1)
|
0.1
|
|
-
|
|
(10.0)
|
|
0.1
|
|
-
|
Other
non-interest income
|
13.7
|
|
9.3
|
|
10.9
|
|
8.2
|
|
10.3
|
Total non-interest income
|
106.3
|
|
94.6
|
|
88.7
|
|
92.3
|
|
94.9
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
161.3
|
|
155.4
|
|
151.5
|
|
135.7
|
|
135.0
|
Occupancy and
equipment
|
44.4
|
|
44.3
|
|
44.6
|
|
41.6
|
|
40.8
|
Professional
and outside services
|
24.9
|
|
20.0
|
|
21.4
|
|
17.0
|
|
20.6
|
Operating
lease expense
|
9.9
|
|
9.4
|
|
9.8
|
|
8.9
|
|
8.7
|
Amortization
of other acquisition-related intangible assets
|
8.0
|
|
6.7
|
|
6.9
|
|
4.9
|
|
4.9
|
Regulatory
assessments
|
6.5
|
|
7.0
|
|
7.4
|
|
10.0
|
|
9.9
|
Other
non-interest expense
|
23.4
|
|
34.4
|
|
21.1
|
|
23.2
|
|
28.7
|
Total non-interest expense (1)
|
278.4
|
|
277.2
|
|
262.7
|
|
241.3
|
|
248.6
|
Income before income tax expense
|
168.4
|
|
144.6
|
|
148.7
|
|
149.2
|
|
141.0
|
Income tax expense
(1)
|
35.2
|
|
30.0
|
|
15.8
|
|
32.2
|
|
30.8
|
Net income
|
133.2
|
|
114.6
|
|
132.9
|
|
117.0
|
|
110.2
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
Net income available to common shareholders
|
$
129.7
|
|
$
111.1
|
|
$
129.4
|
|
$
113.5
|
|
$
106.7
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.33
|
|
$
0.30
|
|
$
0.35
|
|
$
0.33
|
|
$
0.31
|
Diluted
|
0.33
|
|
0.30
|
|
0.35
|
|
0.33
|
|
0.31
|
|
|
|
|
|
|
|
|
|
|
(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 $6.5
million, $15.0 million, $8.0 million, $0.5 million and $2.9 million
of non-operating expenses for the
|
three months ended June 30
,2019, 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.
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
June 30,
|
(in millions, except
per common share data)
|
2019
|
|
2018
|
Interest and
dividend income:
|
|
|
|
Commercial
real estate
|
$
272.6
|
|
$
218.5
|
Commercial and
industrial
|
215.3
|
|
172.4
|
Equipment
financing
|
121.8
|
|
99.4
|
Residential
mortgage
|
156.2
|
|
110.0
|
Home equity
and other consumer
|
50.6
|
|
42.2
|
Total interest on loans
|
816.5
|
|
642.5
|
Securities
|
94.0
|
|
89.1
|
Short-term
investments
|
2.5
|
|
2.5
|
Loans held for
sale
|
0.3
|
|
0.4
|
Total interest and dividend income
|
913.3
|
|
734.5
|
Interest
expense:
|
|
|
|
Deposits
|
177.8
|
|
88.6
|
Borrowings
|
37.0
|
|
32.7
|
Notes and
debentures
|
17.6
|
|
16.2
|
Total interest expense
|
232.4
|
|
137.5
|
Net interest income
|
680.9
|
|
597.0
|
Provision for loan
losses
|
13.2
|
|
11.9
|
Net interest income after provision for loan losses
|
667.7
|
|
585.1
|
Non-interest
income:
|
|
|
|
Bank service
charges
|
51.6
|
|
48.1
|
Investment
management fees
|
33.6
|
|
34.9
|
Operating
lease income
|
25.4
|
|
21.9
|
Insurance
revenue
|
19.2
|
|
18.1
|
Commercial
banking lending fees
|
18.0
|
|
19.8
|
Cash
management fees
|
14.0
|
|
13.6
|
Customer
interest rate swap income, net
|
10.6
|
|
5.5
|
Brokerage
commissions
|
5.4
|
|
6.3
|
Other
non-interest income
|
23.1
|
|
17.1
|
Total non-interest income
|
200.9
|
|
185.3
|
Non-interest
expense:
|
|
|
|
Compensation
and benefits
|
316.7
|
|
275.7
|
Occupancy and
equipment
|
88.7
|
|
82.0
|
Professional
and outside services
|
44.9
|
|
39.2
|
Operating
lease expense
|
19.3
|
|
17.7
|
Amortization
of other acquisition-related intangible assets
|
14.7
|
|
10.0
|
Regulatory
assessments
|
13.5
|
|
20.5
|
Other
non-interest expense
|
57.8
|
|
47.0
|
Total non-interest expense (1)
|
555.6
|
|
492.1
|
Income before income tax expense
|
313.0
|
|
278.3
|
Income tax
expense
|
65.2
|
|
60.2
|
Net income
|
247.8
|
|
218.1
|
Preferred stock
dividend
|
7.0
|
|
7.0
|
Net income available to common shareholders
|
$
240.8
|
|
$
211.1
|
|
|
|
|
Earnings per common
share:
|
|
|
|
Basic
|
$
0.63
|
|
$
0.62
|
Diluted
|
0.63
|
|
0.61
|
|
|
|
|
(1) Total
non-interest expense includes $21.5 million and $2.9 million of
non-operating expenses for the six
|
months ended June 30, 2019
and 2018, respectively. See Non-GAAP Financial Measures and
Reconciliation to GAAP.
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
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
|
$
214.1
|
$
1.2
|
2.21%
|
|
$
202.8
|
$
1.3
|
2.60%
|
|
$
266.7
|
$
1.3
|
2.02%
|
Securities
(2)
|
7,147.1
|
50.8
|
2.85
|
|
7,310.6
|
52.4
|
2.87
|
|
7,302.1
|
49.2
|
2.69
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
12,323.2
|
139.9
|
4.54
|
|
11,588.3
|
132.7
|
4.58
|
|
10,802.9
|
111.5
|
4.13
|
Commercial and
industrial
|
9,638.2
|
114.1
|
4.74
|
|
8,974.0
|
106.5
|
4.74
|
|
8,558.3
|
92.6
|
4.32
|
Equipment
financing
|
4,510.8
|
62.8
|
5.56
|
|
4,357.7
|
59.0
|
5.42
|
|
3,923.6
|
50.5
|
5.14
|
Residential
mortgage
|
9,672.6
|
85.6
|
3.54
|
|
8,153.6
|
70.9
|
3.48
|
|
6,853.6
|
55.5
|
3.24
|
Home equity
and other consumer
|
2,084.6
|
25.7
|
4.94
|
|
1,972.9
|
24.9
|
5.05
|
|
1,977.6
|
21.4
|
4.33
|
Total loans
|
38,229.4
|
428.1
|
4.48
|
|
35,046.5
|
394.0
|
4.50
|
|
32,116.0
|
331.5
|
4.13
|
Total earning assets
|
45,590.6
|
$ 480.1
|
4.21%
|
|
42,559.9
|
$ 447.7
|
4.21%
|
|
39,684.8
|
$ 382.0
|
3.85%
|
Other
assets
|
5,496.9
|
|
|
|
5,240.3
|
|
|
|
4,425.0
|
|
|
Total assets
|
$
51,087.5
|
|
|
|
$
47,800.2
|
|
|
|
$
44,109.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
8,605.6
|
$
-
|
- %
|
|
$
8,301.3
|
$
-
|
- %
|
|
$
7,872.7
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
22,341.3
|
57.4
|
1.03
|
|
21,018.0
|
48.8
|
0.93
|
|
19,220.6
|
28.2
|
0.59
|
Time
|
8,263.8
|
39.2
|
1.90
|
|
7,130.8
|
32.4
|
1.82
|
|
5,442.3
|
19.1
|
1.40
|
Total deposits
|
39,210.7
|
96.6
|
0.99
|
|
36,450.1
|
81.2
|
0.89
|
|
32,535.6
|
47.3
|
0.58
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
1,844.0
|
12.2
|
2.64
|
|
1,890.1
|
12.4
|
2.64
|
|
3,009.3
|
14.8
|
1.97
|
Federal funds
purchased
|
1,057.8
|
6.7
|
2.53
|
|
751.9
|
4.7
|
2.52
|
|
634.5
|
3.0
|
1.86
|
Customer
repurchase agreements
|
240.0
|
0.4
|
0.77
|
|
286.2
|
0.5
|
0.65
|
|
228.7
|
0.1
|
0.31
|
Other
borrowings
|
4.3
|
-
|
0.64
|
|
9.0
|
0.1
|
2.43
|
|
158.5
|
0.6
|
1.45
|
Total borrowings
|
3,146.1
|
19.3
|
2.46
|
|
2,937.2
|
17.7
|
2.41
|
|
4,031.0
|
18.5
|
1.84
|
Notes and
debentures
|
903.8
|
8.8
|
3.89
|
|
896.3
|
8.8
|
3.93
|
|
889.6
|
8.4
|
3.79
|
Total funding liabilities
|
43,260.6
|
$ 124.7
|
1.15%
|
|
40,283.6
|
$ 107.7
|
1.07%
|
|
37,456.2
|
$
74.2
|
0.79%
|
Other
liabilities
|
848.8
|
|
|
|
954.3
|
|
|
|
784.0
|
|
|
Total liabilities
|
44,109.4
|
|
|
|
41,237.9
|
|
|
|
38,240.2
|
|
|
Stockholders'
equity
|
6,978.1
|
|
|
|
6,562.3
|
|
|
|
5,869.6
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
51,087.5
|
|
|
|
$
47,800.2
|
|
|
|
$
44,109.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 355.4
|
3.06%
|
|
|
$ 340.0
|
3.14%
|
|
|
$ 307.8
|
3.06%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.12%
|
|
|
|
3.20%
|
|
|
|
3.10%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $7.3 million, $7.2 million and $6.6
million for the three months ended
|
June 30, 2019, March
31, 2019 and June 30, 2018, respectively.
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2019
|
|
June 30,
2018
|
Six months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
208.5
|
$
2.5
|
2.40%
|
|
$
316.3
|
$
2.5
|
1.63%
|
Securities
(2)
|
7,228.4
|
103.2
|
2.86
|
|
7,244.4
|
97.2
|
2.68
|
Loans:
|
|
|
|
|
|
|
|
Commercial
real estate
|
11,957.8
|
272.6
|
4.56
|
|
10,868.2
|
218.5
|
4.02
|
Commercial and
industrial
|
9,307.9
|
220.6
|
4.74
|
|
8,488.8
|
177.2
|
4.18
|
Equipment
financing
|
4,434.7
|
121.8
|
5.49
|
|
3,897.3
|
99.4
|
5.10
|
Residential
mortgage
|
8,917.3
|
156.5
|
3.51
|
|
6,845.4
|
110.4
|
3.22
|
Home equity
and other consumer
|
2,029.0
|
50.6
|
4.99
|
|
2,006.2
|
42.2
|
4.20
|
Total loans
|
36,646.7
|
822.1
|
4.49
|
|
32,105.9
|
647.7
|
4.03
|
Total earning assets
|
44,083.6
|
$ 927.8
|
4.21%
|
|
39,666.6
|
$ 747.4
|
3.77%
|
Other
assets
|
5,369.3
|
|
|
|
4,394.2
|
|
|
Total assets
|
$
49,452.9
|
|
|
|
$
44,060.8
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
8,454.3
|
$
-
|
- %
|
|
$
7,834.9
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
and money market
|
21,683.3
|
106.2
|
0.98
|
|
19,430.4
|
53.1
|
0.55
|
Time
|
7,700.5
|
71.6
|
1.86
|
|
5,413.6
|
35.5
|
1.31
|
Total deposits
|
37,838.1
|
177.8
|
0.94
|
|
32,678.9
|
88.6
|
0.54
|
Borrowings:
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
1,866.9
|
24.6
|
2.64
|
|
2,844.1
|
25.7
|
1.81
|
Federal funds
purchased
|
905.7
|
11.4
|
2.52
|
|
621.5
|
5.3
|
1.70
|
Customer
repurchase agreements
|
263.0
|
0.9
|
0.71
|
|
245.5
|
0.3
|
0.24
|
Other
borrowings
|
6.6
|
0.1
|
1.85
|
|
181.0
|
1.4
|
1.57
|
Total borrowings
|
3,042.2
|
37.0
|
2.43
|
|
3,892.1
|
32.7
|
1.68
|
Notes and
debentures
|
900.1
|
17.6
|
3.91
|
|
892.5
|
16.2
|
3.63
|
Total funding liabilities
|
41,780.4
|
$ 232.4
|
1.11%
|
|
37,463.5
|
$ 137.5
|
0.73%
|
Other
liabilities
|
901.1
|
|
|
|
752.1
|
|
|
Total liabilities
|
42,681.5
|
|
|
|
38,215.6
|
|
|
Stockholders'
equity
|
6,771.4
|
|
|
|
5,845.2
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
49,452.9
|
|
|
|
$
44,060.8
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 695.4
|
3.10%
|
|
|
$ 609.9
|
3.04%
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.15%
|
|
|
|
3.07%
|
|
|
|
|
|
|
|
|
(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 $14.5 million and $12.9 million for the
six months
|
ended June 30, 2019
and 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June
30,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
23.2
|
$
|
33.6
|
$
|
33.5
|
$
|
17.2
|
$
|
20.3
|
|
Commercial and
industrial
|
|
45.4
|
|
30.3
|
|
38.0
|
|
44.9
|
|
50.1
|
|
Equipment
financing
|
|
42.7
|
|
37.5
|
|
42.0
|
|
49.3
|
|
49.2
|
|
Total
|
|
111.3
|
|
101.4
|
|
113.5
|
|
111.4
|
|
119.6
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
38.4
|
|
35.4
|
|
38.9
|
|
32.0
|
|
33.5
|
|
Home
equity
|
|
14.7
|
|
14.1
|
|
15.3
|
|
14.6
|
|
15.1
|
|
Other
consumer
|
|
-
|
|
-
|
|
-
|
|
0.1
|
|
-
|
|
Total
|
|
53.1
|
|
49.5
|
|
54.2
|
|
46.7
|
|
48.6
|
|
Total originated non-performing loans (1)
|
|
164.4
|
|
150.9
|
|
167.7
|
|
158.1
|
|
168.2
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
8.1
|
|
6.9
|
|
5.5
|
|
4.4
|
|
5.8
|
|
Commercial
|
|
0.6
|
|
4.1
|
|
8.7
|
|
8.7
|
|
9.3
|
|
Total REO
|
|
8.7
|
|
11.0
|
|
14.2
|
|
13.1
|
|
15.1
|
|
Repossessed
assets
|
|
5.7
|
|
5.6
|
|
3.9
|
|
2.0
|
|
3.7
|
|
Total non-performing assets
|
$
|
178.8
|
$
|
167.5
|
$
|
185.8
|
$
|
173.2
|
$
|
187.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount)
|
$
|
34.1
|
$
|
42.6
|
$
|
50.1
|
$
|
32.3
|
$
|
26.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.52
|
%
|
0.49
|
%
|
0.55
|
%
|
0.53
|
%
|
0.56
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans, REO and repossessed assets
|
|
0.56
|
|
0.54
|
|
0.61
|
|
0.57
|
|
0.62
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
4.24
|
|
4.23
|
|
4.76
|
|
4.78
|
|
5.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $1.6 million at June 30, 2019, $1.4
million at March 31, 2019,
|
|
$1.9 million at
December 31, 2018, $2.5 million at September 30, 2018 and $2.6
million at June 30, 2018.
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
$
|
236.9
|
$
|
236.3
|
$
|
233.9
|
$
|
232.8
|
$
|
231.3
|
|
Charge-offs
|
|
(4.4)
|
|
(5.6)
|
|
(7.3)
|
|
(6.4)
|
|
(4.7)
|
|
Recoveries
|
|
2.2
|
|
2.2
|
|
1.3
|
|
1.0
|
|
1.9
|
|
Net loan charge-offs
|
|
(2.2)
|
|
(3.4)
|
|
(6.0)
|
|
(5.4)
|
|
(2.8)
|
|
Provision for
loan losses
|
|
5.4
|
|
4.0
|
|
8.4
|
|
6.5
|
|
4.3
|
|
Balance at end of period
|
|
240.1
|
|
236.9
|
|
236.3
|
|
233.9
|
|
232.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
4.0
|
|
4.1
|
|
4.1
|
|
4.0
|
|
4.0
|
|
Charge-offs
|
|
(2.9)
|
|
(1.9)
|
|
(1.8)
|
|
(2.0)
|
|
(2.5)
|
|
Recoveries
|
|
0.6
|
|
0.2
|
|
0.3
|
|
0.4
|
|
0.3
|
|
Net loan charge-offs
|
|
(2.3)
|
|
(1.7)
|
|
(1.5)
|
|
(1.6)
|
|
(2.2)
|
|
Provision for
loan losses
|
|
2.2
|
|
1.6
|
|
1.5
|
|
1.7
|
|
2.2
|
|
Balance at end of period
|
|
3.9
|
|
4.0
|
|
4.1
|
|
4.1
|
|
4.0
|
|
Total allowance for loan losses
|
$
|
244.0
|
$
|
240.9
|
$
|
240.4
|
$
|
238.0
|
$
|
236.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated commercial
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated commercial loans
|
|
0.91
|
%
|
0.91
|
%
|
0.93
|
%
|
0.94
|
%
|
0.93
|
%
|
Originated retail
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of originated retail loans
|
|
0.34
|
|
0.37
|
|
0.36
|
|
0.36
|
|
0.36
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
|
|
0.76
|
|
0.76
|
|
0.77
|
|
0.78
|
|
0.77
|
|
Originated non-performing loans
|
|
146.0
|
|
157.0
|
|
140.9
|
|
147.9
|
|
138.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
0.1
|
$
|
1.1
|
$
|
1.4
|
$
|
1.7
|
$
|
0.7
|
|
Commercial and
industrial
|
|
0.2
|
|
1.7
|
|
1.4
|
|
2.2
|
|
1.7
|
|
Equipment
financing
|
|
3.9
|
|
2.2
|
|
4.4
|
|
2.9
|
|
2.6
|
|
Total
|
|
4.2
|
|
5.0
|
|
7.2
|
|
6.8
|
|
5.0
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
0.1
|
|
0.1
|
|
-
|
|
0.1
|
|
(0.1)
|
|
Home
equity
|
|
-
|
|
(0.2)
|
|
0.1
|
|
(0.1)
|
|
-
|
|
Other
consumer
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.1
|
|
Total
|
|
0.3
|
|
0.1
|
|
0.3
|
|
0.2
|
|
-
|
|
Total net loan charge-offs
|
$
|
4.5
|
$
|
5.1
|
$
|
7.5
|
$
|
7.0
|
$
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.05
|
%
|
0.06
|
%
|
0.09
|
%
|
0.09
|
%
|
0.06
|
%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
addition to evaluating People's United Financial Inc. ("People's
United") results of operations in accordance with
|
U.S. generally
accepted accounting principles ("GAAP"), management routinely
supplements its evaluation with an analysis
|
of certain non-GAAP
financial measures, such as the efficiency and tangible 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
|
|
Six Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
Total non-interest
expense
|
|
$
278.4
|
|
$
277.2
|
|
$
262.7
|
|
$
241.3
|
|
$
248.6
|
|
$
555.6
|
|
$
492.1
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(6.5)
|
|
(15.0)
|
|
(8.0)
|
|
(0.5)
|
|
(2.9)
|
|
(21.5)
|
|
(2.9)
|
Total
|
|
(6.5)
|
|
(15.0)
|
|
(8.0)
|
|
(0.5)
|
|
(2.9)
|
|
(21.5)
|
|
(2.9)
|
Operating non-interest expense
|
|
271.9
|
|
262.2
|
|
254.7
|
|
240.8
|
|
245.7
|
|
534.1
|
|
489.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(9.9)
|
|
(9.4)
|
|
(9.8)
|
|
(8.9)
|
|
(8.7)
|
|
(19.3)
|
|
(17.7)
|
Amortization of other
acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(8.0)
|
|
(6.7)
|
|
(6.9)
|
|
(4.9)
|
|
(4.9)
|
|
(14.7)
|
|
(10.0)
|
Other (1)
|
|
(1.4)
|
|
(1.8)
|
|
(1.6)
|
|
(1.8)
|
|
(1.7)
|
|
(3.2)
|
|
(3.0)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
252.6
|
|
$
244.3
|
|
$
236.4
|
|
$
225.2
|
|
$
230.4
|
|
$
496.9
|
|
$
458.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
355.4
|
|
$
340.0
|
|
$
339.5
|
|
$
313.0
|
|
$
307.8
|
|
$
695.4
|
|
$
609.9
|
Total non-interest
income
|
|
106.3
|
|
94.6
|
|
88.7
|
|
92.3
|
|
94.9
|
|
200.9
|
|
185.3
|
Total revenues
|
|
461.7
|
|
434.6
|
|
428.2
|
|
405.3
|
|
402.7
|
|
896.3
|
|
795.2
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(9.9)
|
|
(9.4)
|
|
(9.8)
|
|
(8.9)
|
|
(8.7)
|
|
(19.3)
|
|
(17.7)
|
BOLI FTE
adjustment
|
|
0.7
|
|
0.6
|
|
0.5
|
|
0.6
|
|
0.4
|
|
1.3
|
|
0.8
|
Net security
(gains) losses
|
|
(0.1)
|
|
-
|
|
10.0
|
|
(0.1)
|
|
-
|
|
(0.1)
|
|
(0.1)
|
Other
(2)
|
|
-
|
|
0.3
|
|
-
|
|
-
|
|
-
|
|
0.3
|
|
-
|
Total revenues for efficiency ratio
|
|
$
452.4
|
|
$
426.1
|
|
$
428.9
|
|
$
396.9
|
|
$
394.4
|
|
$
878.5
|
|
$
778.2
|
Efficiency ratio
|
|
55.8%
|
|
57.3%
|
|
55.1%
|
|
56.7%
|
|
58.4%
|
|
56.6%
|
|
58.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Six Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
(dollars in millions,
except per common share data)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
Net income available
to common shareholders
|
|
$
129.7
|
|
$
111.1
|
|
$
129.4
|
|
$
113.5
|
|
$
106.7
|
|
$
240.8
|
|
$
211.1
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
6.5
|
|
15.0
|
|
8.0
|
|
0.5
|
|
2.9
|
|
21.5
|
|
2.9
|
Security
losses associated with tax reform (1)
|
|
-
|
|
-
|
|
10.0
|
|
-
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
6.5
|
|
15.0
|
|
18.0
|
|
0.5
|
|
2.9
|
|
21.5
|
|
2.9
|
Tax effect
(2)
|
|
(1.4)
|
|
(3.1)
|
|
(13.2)
|
|
(0.2)
|
|
(0.6)
|
|
(4.5)
|
|
(0.6)
|
Total adjustments, net of tax
|
|
5.1
|
|
11.9
|
|
4.8
|
|
0.3
|
|
2.3
|
|
17.0
|
|
2.3
|
Operating earnings
|
|
$
134.8
|
|
$
123.0
|
|
$
134.2
|
|
$
113.8
|
|
$
109.0
|
|
$
257.8
|
|
$
213.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.33
|
|
$
0.30
|
|
$
0.35
|
|
$
0.33
|
|
$
0.31
|
|
$
0.63
|
|
$
0.61
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.01
|
|
0.03
|
|
0.01
|
|
-
|
|
0.01
|
|
0.04
|
|
0.01
|
Security
losses associated with tax reform
|
|
-
|
|
-
|
|
0.02
|
|
-
|
|
-
|
|
-
|
|
-
|
Tax benefit
associated with tax reform
|
|
-
|
|
-
|
|
(0.02)
|
|
-
|
|
-
|
|
-
|
|
-
|
Total adjustments per common share
|
|
0.01
|
|
0.03
|
|
0.01
|
|
-
|
|
0.01
|
|
0.04
|
|
0.01
|
Operating EPS
|
|
$
0.34
|
|
$
0.33
|
|
$
0.36
|
|
$
0.33
|
|
$
0.32
|
|
$
0.67
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 51,088
|
|
$ 47,800
|
|
$ 47,721
|
|
$ 44,245
|
|
$
44,110
|
|
$ 49,453
|
|
$
44,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
1.06%
|
|
1.03%
|
|
1.12%
|
|
1.03%
|
|
0.99%
|
|
1.04%
|
|
0.97%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Six Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
Operating
earnings
|
|
$
134.8
|
|
$
123.0
|
|
$
134.2
|
|
$
113.8
|
|
$
109.0
|
|
$
257.8
|
|
$
213.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
6,978
|
|
$
6,562
|
|
$
6,515
|
|
$
5,937
|
|
$
5,870
|
|
$
6,771
|
|
$
5,845
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
6,734
|
|
6,318
|
|
6,271
|
|
5,693
|
|
5,626
|
|
6,527
|
|
5,601
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,043
|
|
2,900
|
|
2,807
|
|
2,572
|
|
2,554
|
|
2,972
|
|
2,556
|
Average tangible
common equity
|
|
$
3,691
|
|
$
3,418
|
|
$
3,464
|
|
$
3,121
|
|
$
3,072
|
|
$
3,556
|
|
$
3,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
14.6%
|
|
14.4%
|
|
15.5%
|
|
14.6%
|
|
14.2%
|
|
14.5%
|
|
14.0%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
Common dividends
paid
|
|
$
69.8
|
|
$
65.2
|
|
$
65.1
|
|
$
60.0
|
|
$
59.9
|
|
$
135.0
|
|
$
118.7
|
Operating
earnings
|
|
$
134.8
|
|
$
123.0
|
|
$
134.2
|
|
$
113.8
|
|
$
109.0
|
|
$
257.8
|
|
$
213.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
51.8%
|
|
53.0%
|
|
48.5%
|
|
52.7%
|
|
55.0%
|
|
52.4%
|
|
55.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
|
|
|
Total stockholders'
equity
|
|
$
7,046
|
|
$
6,621
|
|
$
6,534
|
|
$
5,959
|
|
$
5,900
|
|
|
|
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
|
|
|
Common
equity
|
|
6,802
|
|
6,377
|
|
6,290
|
|
5,715
|
|
5,656
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,073
|
|
2,896
|
|
2,866
|
|
2,569
|
|
2,574
|
|
|
|
|
Tangible common
equity
|
|
$
3,730
|
|
$
3,481
|
|
$
3,424
|
|
$
3,146
|
|
$
3,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 51,622
|
|
$ 48,092
|
|
$ 47,877
|
|
$ 44,133
|
|
$ 44,575
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,073
|
|
2,896
|
|
2,866
|
|
2,569
|
|
2,574
|
|
|
|
|
Tangible
assets
|
|
$ 48,549
|
|
$ 45,196
|
|
$ 45,011
|
|
$ 41,564
|
|
$ 42,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.7%
|
|
7.7%
|
|
7.6%
|
|
7.6%
|
|
7.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
|
|
(in millions, except
per common share data)
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
|
|
|
Tangible common
equity
|
|
$
3,730
|
|
$
3,481
|
|
$
3,424
|
|
$
3,146
|
|
$
3,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
487.35
|
|
467.38
|
|
466.32
|
|
437.74
|
|
437.06
|
|
|
|
|
Less: Shares
classified as treasury shares
|
|
89.01
|
|
89.01
|
|
89.03
|
|
89.02
|
|
89.02
|
|
|
|
|
Unallocated ESOP shares
|
|
6.10
|
|
6.19
|
|
6.27
|
|
6.36
|
|
6.45
|
|
|
|
|
Common
shares
|
|
392.24
|
|
372.18
|
|
371.02
|
|
342.36
|
|
341.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
9.51
|
|
$
9.35
|
|
$
9.23
|
|
$
9.19
|
|
$
9.02
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-second-quarter-net-income-of-133-2-million-or-0-33-per-common-share-300887485.html
SOURCE People's United Financial, Inc.