BRIDGEPORT, Conn., Oct. 17, 2019 People's United Financial, Inc.
(NASDAQ: PBCT) today reported results for the third quarter 2019.
These results along with comparison periods are summarized
below:
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($ in millions,
except per common share data)
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Three Months
Ended
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Sep. 30,
2019
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Jun. 30,
2019
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Sep. 30,
2018
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Net income
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$ 135.1
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$ 133.2
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$ 117.0
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Net income
available
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131.6
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129.7
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113.5
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to common
shareholders
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Per common
share
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0.33
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0.33
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0.33
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Operating
earnings1
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135.5
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134.8
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113.8
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Per common
share
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0.34
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0.34
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0.33
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Net interest
income
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$ 348.7
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$ 348.1
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$ 306.4
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Net interest
margin
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3.12%
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3.12%
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3.15%
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Non-interest
income
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106.0
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106.3
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92.3
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Non-interest
expense
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$ 281.4
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$ 278.4
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$ 241.3
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Operating
non-interest expense1
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276.4
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271.9
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240.8
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Efficiency
ratio
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56.8%
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55.8%
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56.7%
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Average
balances
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Loans
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$ 38,317
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$ 38,229
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$ 32,166
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Deposits
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38,657
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39,211
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33,058
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Period-end
balances
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Loans
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38,781
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38,557
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32,199
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Deposits
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38,574
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39,467
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33,210
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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"Our performance in the third quarter further demonstrates our
success in building a premier banking franchise for the long-term,"
said Jack Barnes, Chairman and Chief
Executive Officer. "Strategic investments in talent and digital
enhancements, along with thoughtful acquisitions, have broadened
the Company's capabilities and continue to strengthen its earnings
power. As such, we are pleased to report operating earnings of
$135.5 million, an increase of 19
percent from a year ago and an operating return on average tangible
common equity of 14.4 percent. The acquisition of United Financial
is on track to close in the fourth quarter and we remain confident
in achieving the transaction's attractive financial returns. The
addition of United bolsters our already significant share of retail
households and commercial clients across central Connecticut and western Massachusetts. We are excited for their
long-tenured, well-established customer base to join People's
United and benefit from our broader array of products, services and
technology offerings."
"Third quarter financial results were highlighted by a stable
net interest margin, continued strong fee income, well-maintained
expenses and a lower effective tax rate," stated David Rosato, Senior Executive Vice President
and Chief Financial Offer. "Net interest margin of 3.12 percent was
unchanged linked-quarter despite declining interest rates. The
margin benefited from our proactive management of deposit costs and
new business yields remaining higher than the total loan portfolio
yield. Commercial period-end loans grew $505
million or two percent from June
30th primarily driven by mortgage warehouse
lending, equipment finance and Boston commercial real estate. Conversely,
retail period-end loans declined $281
million or two percent mostly due to our planned reduction
of residential mortgages as we continue to remix the balance sheet
with a focus on higher yielding portfolios. Period-end deposits
declined $893 million or two percent
partially due to second quarter ending balances including a
$500 million short-term commercial
deposit, which was withdrawn in July as expected. On an average
basis, deposits were down one percent primarily driven by a
reduction in savings and time balances, partially offset by an
increase in non-interest bearing deposits."
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As of and for the
Three Months Ended
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Sep. 30,
2019
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Jun. 30,
2019
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Sep. 30,
2018
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Asset
Quality
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Net loan
charge-offs
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0.06%
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0.05%
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0.09%
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to average total
loans
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Originated
non-performing loans
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0.48%
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0.52%
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0.53%
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as a percentage of
originated loans
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Returns
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Return on average
assets1
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1.05%
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1.04%
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1.06%
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Return on average
tangible common equity1
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14.0%
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14.1%
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14.5%
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Capital
Ratios
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People's United
Financial, Inc.
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Tangible common
equity / tangible assets
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7.8%
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7.7%
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7.6%
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Tier 1
leverage
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8.7%
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8.7%
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8.7%
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Common equity tier
1
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10.1%
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10.1%
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10.3%
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Tier 1
risk-based
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10.7%
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10.7%
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11.0%
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Total
risk-based
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12.0%
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12.0%
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12.8%
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People's United Bank,
N.A.
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Tier 1
leverage
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8.8%
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8.9%
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9.2%
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Common equity tier
1
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10.8%
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11.0%
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11.6%
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Tier 1
risk-based
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10.8%
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11.0%
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11.6%
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Total
risk-based
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12.2%
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12.4%
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13.6%
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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The Board of Directors declared a $0.1775 per common share quarterly dividend
payable November 15, 2019 to
shareholders of record on October 31,
2019. Based on the closing stock price on October 16, 2019, the dividend yield on People's
United Financial common stock is 4.5 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 $52 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.
3Q 2019 Financial Highlights
Summary
- Net income totaled $135.1
million, or $0.33 per common
share.
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- Net income available to common shareholders totaled
$131.6 million.
- Operating earnings totaled $135.5
million, or $0.34 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $348.7
million in 3Q19 compared to $348.1
million in 2Q19.
- Net interest margin unchanged from 2Q19 at 3.12%
reflecting:
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- Lower rates on deposits (increase of five basis points).
- One additional calendar day in 3Q19 (increase of two basis
points).
- Lower yields on the loan and securities portfolios (decrease of
five basis points).
- Higher rates on borrowings (decrease of two basis points).
- Provision for loan losses totaled $7.8
million.
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- Net loan charge-offs totaled $5.8
million.
- Net loan charge-off ratio of 0.06% in 3Q19.
- Non-interest income totaled $106.0
million in 3Q19 compared to $106.3
million in 2Q19.
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- Commercial banking lending fees increased $1.6 million.
- Insurance revenue increased $1.6
million.
- Bank service charges increased $0.6
million.
- Customer interest rate swap income decreased $2.0 million.
- At September 30, 2019, assets
under discretionary management totaled $9.2
billion.
- Non-interest expense totaled $281.4
million in 3Q19 compared to $278.4
million in 2Q19.
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- Operating non-interest expense totaled $276.4 million in 3Q19 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $0.8 million and $1.5
million of merger-related expenses in 3Q19 and 2Q19,
respectively, decreased $2.5 million,
primarily reflecting lower payroll costs in 3Q19.
- Regulatory assessment expense decreased $1.2 million.
- Professional and outside services expense, excluding
$3.7 million and $4.7 million of merger-related expenses in 3Q19
and 2Q19, respectively, decreased $0.2
million.
- Other non-interest expense increased $8.0 million in 3Q19 compared to 2Q19, reflecting
costs associated with certain legal and other one-time operational
matters.
- The efficiency ratio was 56.8% for 3Q19 compared to 55.8% for
2Q19 and 56.7% for 3Q18 (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 18.4% for 3Q19 and 20.0% for
the first nine months of 2019, compared to 18.8% for the full-year
of 2018.
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- The rate in 2018 reflects a $9.2
million benefit recognized in connection with tax
reform.
Commercial Banking
- Commercial loans totaled $27.5
billion at September 30, 2019,
an increase of $505 million from
June 30, 2019.
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- The mortgage warehouse portfolio increased $429 million.
- The equipment financing portfolio increased $125 million.
- The New York multifamily
portfolio decreased $89 million.
- Average commercial loans totaled $26.9
billion in 3Q19, an increase of $422
million from 2Q19.
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- The average mortgage warehouse portfolio increased $270 million.
- The average equipment financing portfolio increased
$130 million.
- The average New York
multifamily portfolio decreased $73
million.
- Commercial deposits totaled $14.9
billion at September 30, 2019
compared to $15.1 billion at
June 30, 2019.
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- A $500 million short-term deposit
was withdrawn in July.
- The ratio of originated non-performing commercial loans to
originated commercial loans was 0.44% at September 30, 2019 compared to 0.48% at
June 30, 2019.
- Non-performing commercial assets, excluding acquired
non-performing loans, totaled $118.3
million at September 30, 2019
compared to $117.6 million at
June 30, 2019.
- For the originated commercial loan portfolio, the allowance for
loan losses as a percentage of loans was 0.89% at September 30, 2019 compared to 0.91% at
June 30, 2019.
- The originated commercial allowance for loan losses represented
205% of originated non-performing commercial loans at September 30, 2019 compared to 190% at
June 30, 2019.
Retail Banking
- Residential mortgage loans totaled $9.3
billion at September 30, 2019,
a decrease of $224 million from
June 30, 2019.
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- Average residential mortgage loans totaled $9.4 billion in 3Q19, a decrease of $280 million from 2Q19.
- Home equity loans totaled $2.0
billion at September 30, 2019,
a decrease of $53 million from
June 30, 2019.
-
- Average home equity loans totaled $2.0
billion in 3Q19, a decrease of $51
million from 2Q19.
- Retail deposits totaled $23.7
billion at September 30, 2019
compared to $24.4 billion at
June 30, 2019.
- The ratio of originated non-performing residential mortgage
loans to originated residential mortgage loans was 0.55% at
September 30, 2019 compared to 0.57%
at June 30, 2019.
- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.85% at September 30, 2019 compared to 0.86% at
June 30, 2019.
- For the originated retail loan portfolio, the allowance for
loan losses as a percentage of loans was 0.35% at September 30, 2019 compared to 0.34% at
June 30, 2019.
- The originated retail allowance for loan losses represented 57%
of originated non-performing retail loans at September 30, 2019 compared to 55% at
June 30, 2019.
Conference Call
On October 17, 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.
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People's United
Financial, Inc.
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FINANCIAL
HIGHLIGHTS
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Three Months
Ended
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Sept. 30,
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June 30,
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March 31,
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Dec. 31,
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Sept. 30,
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(dollars in millions,
except per common share data)
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2019
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2019
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2019
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2018
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2018
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Earnings
Data:
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Net interest income
(fully taxable equivalent)
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$
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356.0
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$
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355.4
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$
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340.0
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$
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339.5
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$
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313.0
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Net interest
income
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348.7
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348.1
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332.8
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332.6
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306.4
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Provision for loan
losses
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7.8
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7.6
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5.6
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9.9
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8.2
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Non-interest income
(1)
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106.0
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106.3
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94.6
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88.7
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92.3
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Non-interest expense
(1)
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281.4
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278.4
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277.2
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262.7
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241.3
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Income before income
tax expense
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165.5
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168.4
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144.6
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148.7
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149.2
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Net income
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135.1
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133.2
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114.6
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132.9
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117.0
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Net income available
to common shareholders (1)
|
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131.6
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129.7
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111.1
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129.4
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113.5
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Selected
Statistical Data:
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Net interest margin
(2)
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3.12
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%
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3.12
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%
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3.20
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%
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3.17
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%
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3.15
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%
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Return on average
assets (1), (2)
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1.05
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1.04
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0.96
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1.11
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1.06
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Return on average
common equity (2)
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7.7
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7.7
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7.0
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8.3
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8.0
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Return on average
tangible common equity (1), (2)
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14.0
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14.1
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13.0
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14.9
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14.5
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Efficiency ratio
(1)
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56.8
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55.8
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57.3
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55.1
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56.7
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Common Share
Data:
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Earnings per common
share:
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Basic
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$
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0.34
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$
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0.33
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$
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0.30
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$
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0.35
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$
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0.33
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Diluted
(1)
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0.33
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0.33
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0.30
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0.35
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0.33
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Dividends paid per
common share
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0.1775
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0.1775
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0.1750
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0.1750
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0.1750
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Common dividend
payout ratio (1)
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53.1
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%
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53.8
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%
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58.6
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%
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50.3
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%
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52.9
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%
|
Book value per common
share (end of period)
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$
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17.54
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$
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17.34
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$
|
17.13
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$
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16.95
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$
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16.69
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Tangible book value
per common share (end of period) (1)
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9.74
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9.51
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9.35
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9.23
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9.19
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Stock
price:
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High
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17.10
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17.66
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18.03
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17.46
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19.00
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Low
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13.81
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15.24
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14.25
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13.66
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16.95
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Close (end of
period)
|
|
15.64
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16.78
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16.44
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14.43
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17.12
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Common shares (end of
period) (in millions)
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392.57
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392.24
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372.18
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371.02
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342.36
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Weighted average
diluted common shares (in millions)
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394.45
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394.57
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374.09
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372.83
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345.04
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(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
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(2)
Annualized.
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People's United
Financial, Inc.
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
|
(dollars in millions,
except per common share data)
|
|
2019
|
|
2018
|
|
Earnings
Data:
|
|
|
|
|
|
Net interest income
(fully taxable equivalent)
|
$
|
1,051.4
|
$
|
922.9
|
|
Net interest
income
|
|
1,029.6
|
|
903.4
|
|
Provision for loan
losses
|
|
21.0
|
|
20.1
|
|
Non-interest
income
|
|
306.9
|
|
277.6
|
|
Non-interest expense
(1)
|
|
837.0
|
|
733.4
|
|
Income before income
tax expense
|
|
478.5
|
|
427.5
|
|
Net income
|
|
383.0
|
|
335.1
|
|
Net income available
to common shareholders (1)
|
|
372.5
|
|
324.6
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
Net interest margin
(2)
|
|
3.14
|
%
|
3.10
|
%
|
Return on average
assets (1), (2)
|
|
1.02
|
|
1.01
|
|
Return on average
common equity (2)
|
|
7.5
|
|
7.7
|
|
Return on average
tangible common equity (1), (2)
|
|
13.7
|
|
14.1
|
|
Efficiency ratio
(1)
|
|
56.6
|
|
58.2
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
Basic
|
$
|
0.97
|
$
|
0.95
|
|
Diluted
(1)
|
|
0.96
|
|
0.94
|
|
Dividends paid per
common share
|
|
0.5300
|
|
0.5225
|
|
Common dividend
payout ratio (1)
|
|
55.0
|
%
|
55.1
|
%
|
Book value per common
share (end of period)
|
$
|
17.54
|
$
|
16.69
|
|
Tangible book value
per common share (end of period) (1)
|
|
9.74
|
|
9.19
|
|
Stock
price:
|
|
|
|
|
|
High
|
|
18.03
|
|
20.26
|
|
Low
|
|
13.81
|
|
16.95
|
|
Close (end of
period)
|
|
15.64
|
|
17.12
|
|
Common shares (end of
period) (in millions)
|
|
392.57
|
|
342.36
|
|
Weighted average
diluted common shares (in millions)
|
|
387.78
|
|
344.50
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
(2)
Annualized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
52,072
|
$
|
51,622
|
$
|
48,092
|
$
|
47,877
|
$
|
44,133
|
|
Loans
|
|
38,781
|
|
38,557
|
|
35,515
|
|
35,241
|
|
32,199
|
|
Securities
|
|
7,135
|
|
7,086
|
|
7,176
|
|
7,233
|
|
7,385
|
|
Short-term
investments
|
|
158
|
|
275
|
|
106
|
|
266
|
|
128
|
|
Allowance for loan
losses
|
|
246
|
|
244
|
|
241
|
|
240
|
|
238
|
|
Goodwill and other
acquisition-related intangible assets
|
3,065
|
|
3,073
|
|
2,897
|
|
2,866
|
|
2,569
|
|
Deposits
|
|
38,574
|
|
39,467
|
|
36,901
|
|
36,159
|
|
33,210
|
|
Borrowings
|
|
4,629
|
|
3,400
|
|
2,860
|
|
3,593
|
|
3,392
|
|
Notes and
debentures
|
|
916
|
|
912
|
|
902
|
|
896
|
|
886
|
|
Stockholders'
equity
|
|
7,131
|
|
7,046
|
|
6,621
|
|
6,534
|
|
5,959
|
|
Total risk-weighted
assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
39,779
|
|
39,026
|
|
36,466
|
|
35,910
|
|
33,181
|
|
People's United Bank,
N.A.
|
|
39,727
|
|
38,976
|
|
36,447
|
|
35,875
|
|
33,132
|
|
Non-performing assets
(2)
|
|
182
|
|
179
|
|
167
|
|
186
|
|
173
|
|
Net loan
charge-offs
|
|
5.8
|
|
4.5
|
|
5.1
|
|
7.5
|
|
7.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
38,317
|
$
|
38,229
|
$
|
35,046
|
$
|
35,016
|
$
|
32,166
|
|
Securities
(3)
|
|
7,041
|
|
7,147
|
|
7,311
|
|
7,479
|
|
7,404
|
|
Short-term
investments
|
|
219
|
|
214
|
|
203
|
|
292
|
|
193
|
|
Total earning
assets
|
|
45,577
|
|
45,591
|
|
42,560
|
|
42,786
|
|
39,763
|
|
Total
assets
|
|
51,524
|
|
51,088
|
|
47,800
|
|
47,721
|
|
44,245
|
|
Deposits
|
|
38,657
|
|
39,211
|
|
36,450
|
|
35,959
|
|
33,058
|
|
Borrowings
|
|
3,855
|
|
3,146
|
|
2,937
|
|
3,456
|
|
3,539
|
|
Notes and
debentures
|
|
914
|
|
904
|
|
896
|
|
886
|
|
888
|
|
Total funding
liabilities
|
|
43,427
|
|
43,261
|
|
40,284
|
|
40,302
|
|
37,485
|
|
Stockholders'
equity
|
|
7,079
|
|
6,978
|
|
6,562
|
|
6,515
|
|
5,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to average total loans (annualized)
|
0.06
|
%
|
0.05
|
%
|
0.06
|
%
|
0.09
|
%
|
0.09
|
%
|
Non-performing assets
to originated loans,
|
|
|
|
|
|
|
|
|
|
|
|
real estate owned and
repossessed assets (2)
|
|
0.56
|
|
0.56
|
|
0.54
|
|
0.61
|
|
0.57
|
|
Originated allowance
for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans
(2)
|
|
0.75
|
|
0.76
|
|
0.76
|
|
0.77
|
|
0.78
|
|
Originated
non-performing loans (2)
|
|
156.0
|
|
146.0
|
|
157.0
|
|
140.9
|
|
147.9
|
|
Average stockholders'
equity to average total assets
|
|
13.7
|
|
13.7
|
|
13.7
|
|
13.7
|
|
13.4
|
|
Stockholders' equity
to total assets
|
|
13.7
|
|
13.6
|
|
13.8
|
|
13.6
|
|
13.5
|
|
Tangible common
equity to tangible assets (4)
|
|
7.8
|
|
7.7
|
|
7.7
|
|
7.6
|
|
7.6
|
|
Total risk-based
capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.0
|
|
12.0
|
|
12.4
|
|
12.5
|
|
12.8
|
|
People's United Bank,
N.A.
|
|
12.2
|
|
12.4
|
|
12.9
|
|
13.2
|
|
13.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) September 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
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
June 30,
|
Dec. 31,
|
Sept. 30,
|
(in
millions)
|
2019
|
2019
|
2018
|
2018
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$ 635.2
|
$ 505.9
|
$ 665.7
|
$ 410.5
|
Short-term
investments
|
157.8
|
274.8
|
266.3
|
127.5
|
Securities:
|
|
|
|
|
Trading debt
securities, at fair value
|
9.3
|
9.3
|
8.4
|
8.3
|
Equity securities, at
fair value
|
7.8
|
8.5
|
8.1
|
8.9
|
Debt securities
available-for-sale, at fair value
|
2,978.7
|
2,971.2
|
3,121.0
|
3,312.1
|
Debt securities
held-to-maturity, at amortized cost
|
3,805.4
|
3,807.5
|
3,792.3
|
3,742.9
|
Federal Home Loan
Bank and Federal Reserve Bank stock, at cost
|
334.0
|
289.4
|
303.4
|
312.4
|
Total
securities
|
7,135.2
|
7,085.9
|
7,233.2
|
7,384.6
|
Loans
held-for-sale
|
24.8
|
17.4
|
19.5
|
15.2
|
Loans:
|
|
|
|
|
Commercial real
estate
|
12,186.9
|
12,230.7
|
11,649.6
|
10,595.5
|
Commercial and
industrial
|
10,545.9
|
10,121.8
|
9,088.9
|
8,568.6
|
Equipment
financing
|
4,735.6
|
4,611.0
|
4,339.2
|
4,209.3
|
Total Commercial
Portfolio
|
27,468.4
|
26,963.5
|
25,077.7
|
23,373.4
|
Residential
mortgage
|
9,308.7
|
9,532.6
|
8,154.2
|
6,911.9
|
Home equity and other
consumer
|
2,004.3
|
2,060.6
|
2,009.5
|
1,914.0
|
Total Retail
Portfolio
|
11,313.0
|
11,593.2
|
10,163.7
|
8,825.9
|
Total
loans
|
38,781.4
|
38,556.7
|
35,241.4
|
32,199.3
|
Less allowance for
loan losses
|
(246.0)
|
(244.0)
|
(240.4)
|
(238.0)
|
Total loans,
net
|
38,535.4
|
38,312.7
|
35,001.0
|
31,961.3
|
Goodwill and other
acquisition-related intangible assets
|
3,064.9
|
3,072.9
|
2,865.7
|
2,568.9
|
Bank-owned life
insurance
|
505.6
|
504.4
|
467.0
|
407.7
|
Premises and
equipment, net
|
258.5
|
261.0
|
267.3
|
243.8
|
Other
assets
|
1,754.4
|
1,587.5
|
1,091.6
|
1,013.7
|
Total
assets
|
$ 52,071.8
|
$ 51,622.5
|
$ 47,877.3
|
$ 44,133.2
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$ 9,129.3
|
$ 8,747.2
|
$ 8,543.0
|
$ 8,060.2
|
Savings
|
4,616.6
|
4,847.4
|
4,116.5
|
4,048.8
|
Interest-bearing
checking and money market
|
16,727.2
|
17,424.8
|
16,583.3
|
15,065.3
|
Time
|
8,100.4
|
8,447.9
|
6,916.2
|
6,035.9
|
Total
deposits
|
38,573.5
|
39,467.3
|
36,159.0
|
33,210.2
|
Borrowings:
|
|
|
|
|
Federal Home Loan
Bank advances
|
2,948.5
|
2,054.4
|
2,404.5
|
2,369.7
|
Federal funds
purchased
|
1,365.0
|
1,110.0
|
845.0
|
735.0
|
Customer repurchase
agreements
|
315.6
|
235.2
|
332.9
|
261.3
|
Other
borrowings
|
-
|
-
|
11.0
|
26.0
|
Total
borrowings
|
4,629.1
|
3,399.6
|
3,593.4
|
3,392.0
|
Notes and
debentures
|
915.7
|
911.5
|
895.8
|
885.6
|
Other
liabilities
|
822.8
|
797.9
|
695.2
|
686.5
|
Total
liabilities
|
44,941.1
|
44,576.3
|
41,343.4
|
38,174.3
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
244.1
|
Common
stock
|
4.9
|
4.9
|
4.7
|
4.4
|
Additional paid-in
capital
|
6,901.5
|
6,890.7
|
6,549.3
|
6,054.3
|
Retained
earnings
|
1,449.3
|
1,388.1
|
1,284.8
|
1,220.9
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(124.7)
|
(126.5)
|
(130.1)
|
(131.9)
|
Accumulated other
comprehensive loss
|
(182.3)
|
(193.0)
|
(256.8)
|
(270.8)
|
Treasury stock, at
cost
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
(1,162.1)
|
Total stockholders'
equity
|
7,130.7
|
7,046.2
|
6,533.9
|
5,958.9
|
Total liabilities and
stockholders' equity
|
$ 52,071.8
|
$ 51,622.5
|
$ 47,877.3
|
$ 44,133.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
(in millions, except
per common share data)
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$ 136.6
|
|
$ 139.9
|
|
$ 132.7
|
|
$ 130.2
|
|
$ 114.7
|
Commercial and
industrial
|
113.4
|
|
111.4
|
|
103.9
|
|
100.1
|
|
93.2
|
Equipment
financing
|
65.3
|
|
62.8
|
|
59.0
|
|
56.7
|
|
56.2
|
Residential
mortgage
|
84.7
|
|
85.5
|
|
70.7
|
|
70.2
|
|
56.0
|
Home equity and other
consumer
|
24.7
|
|
25.7
|
|
24.9
|
|
24.4
|
|
22.0
|
Total interest on
loans
|
424.7
|
|
425.3
|
|
391.2
|
|
381.6
|
|
342.1
|
Securities
|
44.7
|
|
46.2
|
|
47.8
|
|
48.5
|
|
46.6
|
Short-term
investments
|
1.3
|
|
1.2
|
|
1.3
|
|
1.4
|
|
1.1
|
Loans
held-for-sale
|
0.2
|
|
0.1
|
|
0.2
|
|
0.3
|
|
0.2
|
Total interest and
dividend income
|
470.9
|
|
472.8
|
|
440.5
|
|
431.8
|
|
390.0
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
92.2
|
|
96.6
|
|
81.2
|
|
70.6
|
|
56.9
|
Borrowings
|
21.5
|
|
19.3
|
|
17.7
|
|
20.0
|
|
18.2
|
Notes and
debentures
|
8.5
|
|
8.8
|
|
8.8
|
|
8.6
|
|
8.5
|
Total interest
expense
|
122.2
|
|
124.7
|
|
107.7
|
|
99.2
|
|
83.6
|
Net interest
income
|
348.7
|
|
348.1
|
|
332.8
|
|
332.6
|
|
306.4
|
Provision for loan
losses
|
7.8
|
|
7.6
|
|
5.6
|
|
9.9
|
|
8.2
|
Net interest income
after provision for loan losses
|
340.9
|
|
340.5
|
|
327.2
|
|
322.7
|
|
298.2
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
27.0
|
|
26.4
|
|
25.2
|
|
26.9
|
|
24.9
|
Investment management
fees
|
17.3
|
|
17.1
|
|
16.5
|
|
16.4
|
|
17.4
|
Operating lease
income
|
13.0
|
|
12.7
|
|
12.7
|
|
12.0
|
|
11.0
|
Commercial banking
lending fees
|
11.8
|
|
10.2
|
|
7.8
|
|
9.6
|
|
7.9
|
Insurance
revenue
|
10.3
|
|
8.7
|
|
10.5
|
|
6.7
|
|
9.8
|
Cash management
fees
|
7.3
|
|
7.2
|
|
6.8
|
|
6.6
|
|
7.0
|
Customer interest
rate swap income, net
|
5.6
|
|
7.6
|
|
3.0
|
|
6.3
|
|
2.8
|
Brokerage
commissions
|
2.6
|
|
2.6
|
|
2.8
|
|
3.3
|
|
3.2
|
Net security gains
(losses) (1)
|
-
|
|
0.1
|
|
-
|
|
(10.0)
|
|
0.1
|
Other non-interest
income
|
11.1
|
|
13.7
|
|
9.3
|
|
10.9
|
|
8.2
|
Total non-interest
income
|
106.0
|
|
106.3
|
|
94.6
|
|
88.7
|
|
92.3
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
158.1
|
|
161.3
|
|
155.4
|
|
151.5
|
|
135.7
|
Occupancy and
equipment
|
45.0
|
|
44.4
|
|
44.3
|
|
44.6
|
|
41.6
|
Professional and
outside services
|
23.7
|
|
24.9
|
|
20.0
|
|
21.4
|
|
17.0
|
Operating lease
expense
|
9.9
|
|
9.9
|
|
9.4
|
|
9.8
|
|
8.9
|
Amortization of other
acquisition-related intangible assets
|
8.0
|
|
8.0
|
|
6.7
|
|
6.9
|
|
4.9
|
Regulatory
assessments
|
5.3
|
|
6.5
|
|
7.0
|
|
7.4
|
|
10.0
|
Other non-interest
expense
|
31.4
|
|
23.4
|
|
34.4
|
|
21.1
|
|
23.2
|
Total non-interest
expense (1)
|
281.4
|
|
278.4
|
|
277.2
|
|
262.7
|
|
241.3
|
Income before income
tax expense
|
165.5
|
|
168.4
|
|
144.6
|
|
148.7
|
|
149.2
|
Income tax expense
(1)
|
30.4
|
|
35.2
|
|
30.0
|
|
15.8
|
|
32.2
|
Net income
|
135.1
|
|
133.2
|
|
114.6
|
|
132.9
|
|
117.0
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
Net income available
to common shareholders
|
$ 131.6
|
|
$ 129.7
|
|
$ 111.1
|
|
$ 129.4
|
|
$ 113.5
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.34
|
|
$ 0.33
|
|
$ 0.30
|
|
$ 0.35
|
|
$ 0.33
|
Diluted
|
0.33
|
|
0.33
|
|
0.30
|
|
0.35
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
(1) Net security
gains (losses) for the three months ended December 31, 2018 include
$10.0 million of security losses, 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 $5.0 million, $6.5 million, $15.0 million, $8.0
million and $0.5 million of non-operating expenses
|
for the three months
ended September 30, 2019, June 30, 2019, March 31, 2019, December
31, 2018 and September 30, 2018,
|
respectively. Income
tax expense for the three months ended December 31, 2018 includes a
$9.2 million benefit recognized in
|
connection with tax
reform, which is considered non-operating. See Non-GAAP Financial
Measures and Reconciliation to GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30,
|
(in millions, except
per common share data)
|
2019
|
|
2018
|
Interest and
dividend income:
|
|
|
|
Commercial real
estate
|
$ 409.2
|
|
$ 333.2
|
Commercial and
industrial
|
328.7
|
|
265.6
|
Equipment
financing
|
187.0
|
|
155.6
|
Residential
mortgage
|
240.9
|
|
166.0
|
Home equity and other
consumer
|
75.4
|
|
64.2
|
Total interest on
loans
|
1,241.2
|
|
984.6
|
Securities
|
138.7
|
|
135.7
|
Short-term
investments
|
3.8
|
|
3.6
|
Loans held for
sale
|
0.6
|
|
0.6
|
Total interest and
dividend income
|
1,384.3
|
|
1,124.5
|
Interest
expense:
|
|
|
|
Deposits
|
270.0
|
|
145.5
|
Borrowings
|
58.6
|
|
50.9
|
Notes and
debentures
|
26.1
|
|
24.7
|
Total interest
expense
|
354.7
|
|
221.1
|
Net interest
income
|
1,029.6
|
|
903.4
|
Provision for loan
losses
|
21.0
|
|
20.1
|
Net interest income
after provision for loan losses
|
1,008.6
|
|
883.3
|
Non-interest
income:
|
|
|
|
Bank service
charges
|
78.6
|
|
73.0
|
Investment management
fees
|
50.9
|
|
52.3
|
Operating lease
income
|
38.4
|
|
32.9
|
Commercial banking
lending fees
|
29.8
|
|
27.7
|
Insurance
revenue
|
29.5
|
|
27.9
|
Cash management
fees
|
21.2
|
|
20.6
|
Customer interest
rate swap income, net
|
16.2
|
|
8.3
|
Brokerage
commissions
|
8.0
|
|
9.5
|
Other non-interest
income
|
34.3
|
|
25.4
|
Total non-interest
income
|
306.9
|
|
277.6
|
Non-interest
expense:
|
|
|
|
Compensation and
benefits
|
474.8
|
|
411.4
|
Occupancy and
equipment
|
133.7
|
|
123.6
|
Professional and
outside services
|
68.6
|
|
56.2
|
Operating lease
expense
|
29.2
|
|
26.6
|
Amortization of other
acquisition-related intangible assets
|
22.7
|
|
14.9
|
Regulatory
assessments
|
18.8
|
|
30.5
|
Other non-interest
expense
|
89.2
|
|
70.2
|
Total non-interest
expense (1)
|
837.0
|
|
733.4
|
Income before income
tax expense
|
478.5
|
|
427.5
|
Income tax
expense
|
95.5
|
|
92.4
|
Net income
|
383.0
|
|
335.1
|
Preferred stock
dividend
|
10.5
|
|
10.5
|
Net income available
to common shareholders
|
$ 372.5
|
|
$ 324.6
|
|
|
|
|
Earnings per common
share:
|
|
|
|
Basic
|
$ 0.97
|
|
$ 0.95
|
Diluted
|
0.96
|
|
0.94
|
|
|
|
|
(1) Total
non-interest expense includes $26.5 million and $3.4 million of
non-operating expenses for the
|
nine months ended
September 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2019
|
|
June 30,
2019
|
|
September 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
|
$ 218.7
|
$ 1.3
|
2.33%
|
|
$ 214.1
|
$ 1.2
|
2.21%
|
|
$ 192.5
|
$ 1.1
|
2.06%
|
Securities
(2)
|
7,041.3
|
49.4
|
2.80
|
|
7,147.1
|
50.8
|
2.85
|
|
7,404.2
|
50.8
|
2.75
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
12,194.8
|
136.6
|
4.48
|
|
12,323.2
|
139.9
|
4.54
|
|
10,641.4
|
114.7
|
4.31
|
Commercial and
industrial
|
10,059.2
|
116.0
|
4.61
|
|
9,638.2
|
114.1
|
4.74
|
|
8,584.8
|
95.6
|
4.45
|
Equipment
financing
|
4,640.6
|
65.3
|
5.63
|
|
4,510.8
|
62.8
|
5.56
|
|
4,120.8
|
56.2
|
5.47
|
Residential
mortgage
|
9,392.7
|
84.9
|
3.62
|
|
9,672.6
|
85.6
|
3.54
|
|
6,887.3
|
56.2
|
3.27
|
Home equity and other
consumer
|
2,029.2
|
24.7
|
4.88
|
|
2,084.6
|
25.7
|
4.94
|
|
1,931.8
|
22.0
|
4.55
|
Total
loans
|
38,316.5
|
427.5
|
4.46
|
|
38,229.4
|
428.1
|
4.48
|
|
32,166.1
|
344.7
|
4.29
|
Total earning
assets
|
45,576.5
|
$ 478.2
|
4.20%
|
|
45,590.6
|
$ 480.1
|
4.21%
|
|
39,762.8
|
$ 396.6
|
3.99%
|
Other
assets
|
5,947.8
|
|
|
|
5,496.9
|
|
|
|
4,481.8
|
|
|
Total
assets
|
$ 51,524.3
|
|
|
|
$ 51,087.5
|
|
|
|
$ 44,244.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$ 8,777.3
|
$ -
|
- %
|
|
$ 8,605.6
|
$ -
|
- %
|
|
$ 8,025.2
|
$ -
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money
market
|
21,758.5
|
53.4
|
0.98
|
|
22,341.3
|
57.4
|
1.03
|
|
19,031.4
|
32.6
|
0.68
|
Time
|
8,121.6
|
38.8
|
1.91
|
|
8,263.8
|
39.2
|
1.90
|
|
6,001.3
|
24.3
|
1.62
|
Total
deposits
|
38,657.4
|
92.2
|
0.95
|
|
39,210.7
|
96.6
|
0.99
|
|
33,057.9
|
56.9
|
0.69
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan
Bank advances
|
2,363.0
|
14.1
|
2.39
|
|
1,844.0
|
12.2
|
2.64
|
|
2,560.6
|
14.0
|
2.18
|
Federal funds
purchased
|
1,202.3
|
6.8
|
2.26
|
|
1,057.8
|
6.7
|
2.53
|
|
722.7
|
3.8
|
2.11
|
Customer repurchase
agreements
|
290.1
|
0.6
|
0.86
|
|
240.0
|
0.4
|
0.77
|
|
234.3
|
0.3
|
0.53
|
Other
borrowings
|
-
|
-
|
-
|
|
4.3
|
-
|
0.64
|
|
20.9
|
0.1
|
2.05
|
Total
borrowings
|
3,855.4
|
21.5
|
2.23
|
|
3,146.1
|
19.3
|
2.46
|
|
3,538.5
|
18.2
|
2.05
|
Notes and
debentures
|
913.8
|
8.5
|
3.73
|
|
903.8
|
8.8
|
3.89
|
|
888.3
|
8.5
|
3.83
|
Total funding
liabilities
|
43,426.6
|
$ 122.2
|
1.13%
|
|
43,260.6
|
$ 124.7
|
1.15%
|
|
37,484.7
|
$ 83.6
|
0.89%
|
Other
liabilities
|
1,019.1
|
|
|
|
848.8
|
|
|
|
823.3
|
|
|
Total
liabilities
|
44,445.7
|
|
|
|
44,109.4
|
|
|
|
38,308.0
|
|
|
Stockholders'
equity
|
7,078.6
|
|
|
|
6,978.1
|
|
|
|
5,936.6
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 51,524.3
|
|
|
|
$ 51,087.5
|
|
|
|
$ 44,244.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 356.0
|
3.07%
|
|
|
$ 355.4
|
3.06%
|
|
|
$ 313.0
|
3.10%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.12%
|
|
|
|
3.12%
|
|
|
|
3.15%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, $7.3 million and $6.6
million for the three months ended
|
September 30, 2019,
June 30, 2019 and September 30, 2018, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2019
|
|
|
|
September 30,
2018
|
|
Nine months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$ 211.9
|
$ 3.8
|
2.37%
|
|
$ 274.6
|
$ 3.6
|
1.74%
|
Securities
(2)
|
7,165.4
|
152.6
|
2.84
|
|
7,298.3
|
148.0
|
2.70
|
Loans:
|
|
|
|
|
|
|
|
Commercial real
estate
|
12,037.6
|
409.2
|
4.53
|
|
10,791.8
|
333.2
|
4.12
|
Commercial and
industrial
|
9,561.1
|
336.6
|
4.69
|
|
8,521.2
|
272.8
|
4.27
|
Equipment
financing
|
4,504.1
|
187.0
|
5.54
|
|
3,972.6
|
155.6
|
5.22
|
Residential
mortgage
|
9,077.5
|
241.5
|
3.55
|
|
6,859.5
|
166.6
|
3.24
|
Home equity and other
consumer
|
2,029.1
|
75.4
|
4.95
|
|
1,981.1
|
64.2
|
4.32
|
Total
loans
|
37,209.4
|
1,249.7
|
4.48
|
|
32,126.2
|
992.4
|
4.12
|
Total earning
assets
|
44,586.7
|
$ 1,406.1
|
4.20%
|
|
39,699.1
|
$ 1,144.0
|
3.84%
|
Other
assets
|
5,564.3
|
|
|
|
4,423.6
|
|
|
Total
assets
|
$ 50,151.0
|
|
|
|
$ 44,122.7
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$ 8,563.2
|
$ -
|
- %
|
|
$ 7,899.0
|
$ -
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
and money
market
|
21,708.6
|
159.6
|
0.98
|
|
19,296.0
|
85.7
|
0.59
|
Time
|
7,842.4
|
110.4
|
1.88
|
|
5,611.6
|
59.8
|
1.42
|
Total
deposits
|
38,114.2
|
270.0
|
0.94
|
|
32,806.6
|
145.5
|
0.59
|
Borrowings:
|
|
|
|
|
|
|
|
Federal Home Loan
Bank advances
|
2,034.1
|
38.7
|
2.54
|
|
2,748.6
|
39.7
|
1.92
|
Federal funds
purchased
|
1,005.6
|
18.2
|
2.41
|
|
655.6
|
9.1
|
1.85
|
Customer repurchase
agreements
|
272.1
|
1.6
|
0.76
|
|
241.7
|
0.6
|
0.34
|
Other
borrowings
|
4.4
|
0.1
|
1.86
|
|
127.1
|
1.5
|
1.60
|
Total
borrowings
|
3,316.2
|
58.6
|
2.35
|
|
3,773.0
|
50.9
|
1.80
|
Notes and
debentures
|
904.7
|
26.1
|
3.85
|
|
891.0
|
24.7
|
3.70
|
Total funding
liabilities
|
42,335.1
|
$ 354.7
|
1.12%
|
|
37,470.6
|
$ 221.1
|
0.79%
|
Other
liabilities
|
941.0
|
|
|
|
776.1
|
|
|
Total
liabilities
|
43,276.1
|
|
|
|
38,246.7
|
|
|
Stockholders'
equity
|
6,874.9
|
|
|
|
5,876.0
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$ 50,151.0
|
|
|
|
$ 44,122.7
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 1,051.4
|
3.08%
|
|
|
$ 922.9
|
3.05%
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.14%
|
|
|
|
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 $21.8 million and $19.5 million for the
nine months ended
|
September 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
Originated
non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
25.1
|
$
|
23.2
|
$
|
33.6
|
$
|
33.5
|
$
|
17.2
|
|
Commercial and
industrial
|
|
37.7
|
|
45.4
|
|
30.3
|
|
38.0
|
|
44.9
|
|
Equipment
financing
|
|
41.5
|
|
42.7
|
|
37.5
|
|
42.0
|
|
49.3
|
|
Total
|
|
104.3
|
|
111.3
|
|
101.4
|
|
113.5
|
|
111.4
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
36.6
|
|
38.4
|
|
35.4
|
|
38.9
|
|
32.0
|
|
Home
equity
|
|
14.3
|
|
14.7
|
|
14.1
|
|
15.3
|
|
14.6
|
|
Other
consumer
|
|
0.1
|
|
-
|
|
-
|
|
-
|
|
0.1
|
|
Total
|
|
51.0
|
|
53.1
|
|
49.5
|
|
54.2
|
|
46.7
|
|
Total originated
non-performing loans (1)
|
|
155.3
|
|
164.4
|
|
150.9
|
|
167.7
|
|
158.1
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
12.3
|
|
8.1
|
|
6.9
|
|
5.5
|
|
4.4
|
|
Commercial
|
|
7.7
|
|
0.6
|
|
4.1
|
|
8.7
|
|
8.7
|
|
Total REO
|
|
20.0
|
|
8.7
|
|
11.0
|
|
14.2
|
|
13.1
|
|
Repossessed
assets
|
|
6.3
|
|
5.7
|
|
5.6
|
|
3.9
|
|
2.0
|
|
Total non-performing
assets
|
$
|
181.6
|
$
|
178.8
|
$
|
167.5
|
$
|
185.8
|
$
|
173.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
non-performing loans (contractual amount)
|
$
|
21.1
|
$
|
34.1
|
$
|
42.6
|
$
|
50.1
|
$
|
32.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
non-performing loans as a percentage
|
|
|
|
|
|
|
|
|
|
|
|
of originated
loans
|
|
0.48
|
%
|
0.52
|
%
|
0.49
|
%
|
0.55
|
%
|
0.53
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans, REO
and repossessed assets
|
|
0.56
|
|
0.56
|
|
0.54
|
|
0.61
|
|
0.57
|
|
Tangible
stockholders' equity and originated
|
|
|
|
|
|
|
|
|
|
|
|
allowance for loan
losses
|
|
4.21
|
|
4.24
|
|
4.23
|
|
4.76
|
|
4.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $1.4 million at September 30, 2019,
$1.6 million at June 30, 2019,
|
$1.4 million at March
31, 2019, $1.9 million at December 31, 2018 and $2.5 million at
September 30, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
Allowance for loan
losses on originated loans:
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
240.1
|
$
|
236.9
|
$
|
236.3
|
$
|
233.9
|
$
|
232.8
|
|
Charge-offs
|
|
(6.8)
|
|
(4.4)
|
|
(5.6)
|
|
(7.3)
|
|
(6.4)
|
|
Recoveries
|
|
2.1
|
|
2.2
|
|
2.2
|
|
1.3
|
|
1.0
|
|
Net loan
charge-offs
|
|
(4.7)
|
|
(2.2)
|
|
(3.4)
|
|
(6.0)
|
|
(5.4)
|
|
Provision for loan
losses
|
|
6.9
|
|
5.4
|
|
4.0
|
|
8.4
|
|
6.5
|
|
Balance at end of
period
|
|
242.3
|
|
240.1
|
|
236.9
|
|
236.3
|
|
233.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
3.9
|
|
4.0
|
|
4.1
|
|
4.1
|
|
4.0
|
|
Charge-offs
|
|
(1.4)
|
|
(2.9)
|
|
(1.9)
|
|
(1.8)
|
|
(2.0)
|
|
Recoveries
|
|
0.3
|
|
0.6
|
|
0.2
|
|
0.3
|
|
0.4
|
|
Net loan
charge-offs
|
|
(1.1)
|
|
(2.3)
|
|
(1.7)
|
|
(1.5)
|
|
(1.6)
|
|
Provision for loan
losses
|
|
0.9
|
|
2.2
|
|
1.6
|
|
1.5
|
|
1.7
|
|
Balance at end of
period
|
|
3.7
|
|
3.9
|
|
4.0
|
|
4.1
|
|
4.1
|
|
Total allowance
for loan losses
|
$
|
246.0
|
$
|
244.0
|
$
|
240.9
|
$
|
240.4
|
$
|
238.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated commercial
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
as a percentage of
originated commercial loans
|
0.89
|
%
|
0.91
|
%
|
0.91
|
%
|
0.93
|
%
|
0.94
|
%
|
Originated retail
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a percentage of
originated retail loans
|
|
0.35
|
|
0.34
|
|
0.37
|
|
0.36
|
|
0.36
|
|
Total originated
allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
as a percentage
of:
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans
|
|
0.75
|
|
0.76
|
|
0.76
|
|
0.77
|
|
0.78
|
|
Originated
non-performing loans
|
|
156.0
|
|
146.0
|
|
157.0
|
|
140.9
|
|
147.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
(0.2)
|
$
|
0.1
|
$
|
1.1
|
$
|
1.4
|
$
|
1.7
|
|
Commercial and
industrial
|
|
1.6
|
|
0.2
|
|
1.7
|
|
1.4
|
|
2.2
|
|
Equipment
financing
|
|
4.2
|
|
3.9
|
|
2.2
|
|
4.4
|
|
2.9
|
|
Total
|
|
5.6
|
|
4.2
|
|
5.0
|
|
7.2
|
|
6.8
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
-
|
|
0.1
|
|
0.1
|
|
-
|
|
0.1
|
|
Home
equity
|
|
-
|
|
-
|
|
(0.2)
|
|
0.1
|
|
(0.1)
|
|
Other
consumer
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
Total
|
|
0.2
|
|
0.3
|
|
0.1
|
|
0.3
|
|
0.2
|
|
Total net loan
charge-offs
|
$
|
5.8
|
$
|
4.5
|
$
|
5.1
|
$
|
7.5
|
$
|
7.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total loans
(annualized)
|
|
0.06
|
%
|
0.05
|
%
|
0.06
|
%
|
0.09
|
%
|
0.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP
|
|
|
In addition to
evaluating People's United Financial Inc. ("People's United")
results of operations in accordance with
|
U.S. generally
accepted accounting principles ("GAAP"), management routinely
supplements its evaluation with an analysis
|
of certain non-GAAP
financial measures, such as the efficiency and tangible common
equity ratios, tangible book value per
|
common share and
operating earnings metrics. Management believes these non-GAAP
financial measures provide
|
information useful to
investors in understanding People's United's underlying operating
performance and trends, and
|
facilitates
comparisons with the performance of other financial institutions.
Further, the efficiency ratio and operating
|
earnings metrics are
used by management in its assessment of financial performance,
including non-interest expense
|
control, while the
tangible common equity ratio and tangible book value per common
share are used to analyze the
|
relative strength of
People's United's capital position.
|
|
The efficiency ratio,
which represents an approximate measure of the cost required by
People's United to generate a
|
dollar of revenue, is
the ratio of (i) total non-interest expense (excluding operating
lease expense, goodwill impairment
|
charges, amortization
of other acquisition-related intangible assets, losses on real
estate assets and non-recurring
|
expenses) (the
numerator) to (ii) net interest income on a fully taxable
equivalent ("FTE") basis plus total non-interest
|
income (including the
FTE adjustment on bank-owned life insurance ("BOLI") income, the
netting of operating lease
|
expense and excluding
gains and losses on sales of assets other than residential mortgage
loans and acquired loans, and
|
non-recurring income)
(the denominator). People's United generally considers an item of
income or expense to be
|
non-recurring if it
is not similar to an item of income or expense of a type incurred
within the last two years and is not
|
similar to an item of
income or expense of a type reasonably expected to be incurred
within the following two years.
|
|
Operating earnings
exclude from net income available to common shareholders those
items that management considers
|
to be of such a
non-recurring or infrequent nature that, by excluding such items
(net of income taxes), People's United's
|
results can be
measured and assessed on a more consistent basis from period to
period. Items excluded from operating
|
earnings, which
include, but are not limited to: (i) non-recurring gains/losses;
(ii) merger-related expenses, including
|
acquisition
integration and other costs; (iii) writedowns of banking house
assets and related lease termination costs;
|
(iv)
severance-related costs; and (v) charges related to executive-level
management separation costs, are generally also
|
excluded when
calculating the efficiency ratio. Operating earnings per common
share ("EPS") is derived by determining the
|
per common share
impact of the respective adjustments to arrive at operating
earnings and adding (subtracting) such
|
amounts to (from)
diluted EPS, as reported. Operating return on average assets is
calculated by dividing operating earnings
|
(annualized) by
average total assets. Operating return on average tangible common
equity is calculated by dividing
|
operating earnings
(annualized) by average tangible common equity. The operating
common dividend payout ratio is
|
calculated by
dividing common dividends paid by operating earnings for the
respective period.
|
|
The tangible common
equity ratio is the ratio of (i) tangible common equity (total
stockholders' equity less preferred
|
stock, goodwill and
other acquisition-related intangible assets) (the numerator) to
(ii) tangible assets (total assets less
|
goodwill and other
acquisition-related intangible assets) (the denominator). Tangible
book value per common share is
|
calculated by
dividing tangible common equity by common shares (total common
shares issued, less common shares
|
classified as
treasury shares and unallocated Employee Stock Ownership Plan
("ESOP") common shares).
|
|
In light of diversity
in presentation among financial institutions, the methodologies
used by People's United for
|
determining the
non-GAAP financial measures discussed above may differ from those
used by other financial
|
institutions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
NON-INTEREST EXPENSE AND EFFICIENCY RATIO
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
Total non-interest
expense
|
|
$ 281.4
|
|
$ 278.4
|
|
$ 277.2
|
|
$ 262.7
|
|
$ 241.3
|
|
$ 837.0
|
|
$ 733.4
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(5.0)
|
|
(6.5)
|
|
(15.0)
|
|
(8.0)
|
|
(0.5)
|
|
(26.5)
|
|
(3.4)
|
Total
|
|
(5.0)
|
|
(6.5)
|
|
(15.0)
|
|
(8.0)
|
|
(0.5)
|
|
(26.5)
|
|
(3.4)
|
Operating
non-interest expense
|
|
276.4
|
|
271.9
|
|
262.2
|
|
254.7
|
|
240.8
|
|
810.5
|
|
730.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(9.9)
|
|
(9.9)
|
|
(9.4)
|
|
(9.8)
|
|
(8.9)
|
|
(29.2)
|
|
(26.6)
|
Amortization of other
acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible
assets
|
|
(8.0)
|
|
(8.0)
|
|
(6.7)
|
|
(6.9)
|
|
(4.9)
|
|
(22.7)
|
|
(14.9)
|
Other (1)
|
|
(1.4)
|
|
(1.4)
|
|
(1.8)
|
|
(1.6)
|
|
(1.8)
|
|
(4.6)
|
|
(4.8)
|
Total non-interest
expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$ 257.1
|
|
$ 252.6
|
|
$ 244.3
|
|
$ 236.4
|
|
$ 225.2
|
|
$ 754.0
|
|
$ 683.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$ 356.0
|
|
$ 355.4
|
|
$ 340.0
|
|
$ 339.5
|
|
$ 313.0
|
|
$ 1,051.4
|
|
$ 922.9
|
Total non-interest
income
|
|
106.0
|
|
106.3
|
|
94.6
|
|
88.7
|
|
92.3
|
|
306.9
|
|
277.6
|
Total
revenues
|
|
462.0
|
|
461.7
|
|
434.6
|
|
428.2
|
|
405.3
|
|
1,358.3
|
|
1,200.5
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expense
|
|
(9.9)
|
|
(9.9)
|
|
(9.4)
|
|
(9.8)
|
|
(8.9)
|
|
(29.2)
|
|
(26.6)
|
BOLI FTE
adjustment
|
|
0.5
|
|
0.7
|
|
0.6
|
|
0.5
|
|
0.6
|
|
1.8
|
|
1.4
|
Net security (gains)
losses
|
|
-
|
|
(0.1)
|
|
-
|
|
10.0
|
|
(0.1)
|
|
(0.1)
|
|
(0.2)
|
Other (2)
|
|
0.1
|
|
-
|
|
0.3
|
|
-
|
|
-
|
|
0.4
|
|
-
|
Total revenues for
efficiency ratio
|
|
$ 452.7
|
|
$ 452.4
|
|
$ 426.1
|
|
$ 428.9
|
|
$ 396.9
|
|
$ 1,331.2
|
|
$ 1,175.1
|
Efficiency
ratio
|
|
56.8%
|
|
55.8%
|
|
57.3%
|
|
55.1%
|
|
56.7%
|
|
56.6%
|
|
58.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 added to total revenues for purposes of calculating
the efficiency ratio include, as applicable,
|
asset write-offs and
gains/losses associated with the sale of branch
locations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in millions,
except per common share data)
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
Net income available
to common shareholders
|
$ 131.6
|
|
$ 129.7
|
|
$ 111.1
|
|
$ 129.4
|
|
$ 113.5
|
|
$ 372.5
|
|
$ 324.6
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
5.0
|
|
6.5
|
|
15.0
|
|
8.0
|
|
0.5
|
|
26.5
|
|
3.4
|
Security losses
associated with tax reform (1)
|
-
|
|
-
|
|
-
|
|
10.0
|
|
-
|
|
-
|
|
-
|
Total pre-tax
adjustments
|
|
5.0
|
|
6.5
|
|
15.0
|
|
18.0
|
|
0.5
|
|
26.5
|
|
3.4
|
Tax effect
(2)
|
|
(1.1)
|
|
(1.4)
|
|
(3.1)
|
|
(13.2)
|
|
(0.2)
|
|
(5.6)
|
|
(0.8)
|
Total adjustments,
net of tax
|
|
3.9
|
|
5.1
|
|
11.9
|
|
4.8
|
|
0.3
|
|
20.9
|
|
2.6
|
Operating
earnings
|
|
$ 135.5
|
|
$ 134.8
|
|
$ 123.0
|
|
$ 134.2
|
|
$ 113.8
|
|
$ 393.4
|
|
$ 327.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$ 0.33
|
|
$ 0.33
|
|
$ 0.30
|
|
$ 0.35
|
|
$ 0.33
|
|
$ 0.96
|
|
$ 0.94
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.01
|
|
0.01
|
|
0.03
|
|
0.01
|
|
-
|
|
0.05
|
|
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
|
|
0.01
|
|
0.03
|
|
0.01
|
|
-
|
|
0.05
|
|
0.01
|
Operating
EPS
|
|
$ 0.34
|
|
$ 0.34
|
|
$ 0.33
|
|
$ 0.36
|
|
$ 0.33
|
|
$ 1.01
|
|
$ 0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 51,524
|
|
$ 51,088
|
|
$ 47,800
|
|
$ 47,721
|
|
$ 44,245
|
|
$ 50,151
|
|
$ 44,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average assets
(annualized)
|
|
1.05%
|
|
1.06%
|
|
1.03%
|
|
1.12%
|
|
1.03%
|
|
1.05%
|
|
0.99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
Operating
earnings
|
|
$ 135.5
|
|
$ 134.8
|
|
$ 123.0
|
|
$ 134.2
|
|
$ 113.8
|
|
$ 393.4
|
|
$ 327.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$ 7,079
|
|
$ 6,978
|
|
$ 6,562
|
|
$ 6,515
|
|
$ 5,937
|
|
$ 6,875
|
|
$ 5,876
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
6,835
|
|
6,734
|
|
6,318
|
|
6,271
|
|
5,693
|
|
6,631
|
|
5,632
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related
intangible assets
|
|
3,069
|
|
3,043
|
|
2,900
|
|
2,807
|
|
2,572
|
|
3,005
|
|
2,561
|
Average tangible
common equity
|
|
$ 3,766
|
|
$ 3,691
|
|
$ 3,418
|
|
$ 3,464
|
|
$ 3,121
|
|
$ 3,626
|
|
$ 3,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common equity
(annualized)
|
|
14.4%
|
|
14.6%
|
|
14.4%
|
|
15.5%
|
|
14.6%
|
|
14.5%
|
|
14.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
Common dividends
paid
|
|
$ 69.9
|
|
$ 69.8
|
|
$ 65.2
|
|
$ 65.1
|
|
$ 60.0
|
|
$ 204.9
|
|
$ 178.7
|
Operating
earnings
|
|
$ 135.5
|
|
$ 134.8
|
|
$ 123.0
|
|
$ 134.2
|
|
$ 113.8
|
|
$ 393.4
|
|
$ 327.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
51.6%
|
|
51.8%
|
|
53.0%
|
|
48.5%
|
|
52.7%
|
|
52.1%
|
|
54.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
|
|
(dollars in
millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
Total stockholders'
equity
|
|
$ 7,131
|
|
$ 7,046
|
|
$ 6,621
|
|
$ 6,534
|
|
$ 5,959
|
|
|
|
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
|
|
|
Common
equity
|
|
6,887
|
|
6,802
|
|
6,377
|
|
6,290
|
|
5,715
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related
intangible assets
|
|
3,065
|
|
3,073
|
|
2,896
|
|
2,866
|
|
2,569
|
|
|
|
|
Tangible common
equity
|
|
$ 3,822
|
|
$ 3,730
|
|
$ 3,481
|
|
$ 3,424
|
|
$ 3,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 52,072
|
|
$ 51,622
|
|
$ 48,092
|
|
$ 47,877
|
|
$ 44,133
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related
intangible assets
|
|
3,065
|
|
3,073
|
|
2,896
|
|
2,866
|
|
2,569
|
|
|
|
|
Tangible
assets
|
|
$ 49,007
|
|
$ 48,549
|
|
$ 45,196
|
|
$ 45,011
|
|
$ 41,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.8%
|
|
7.7%
|
|
7.7%
|
|
7.6%
|
|
7.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
|
|
(in millions, except
per common share data)
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
Tangible common
equity
|
|
$ 3,822
|
|
$ 3,730
|
|
$ 3,481
|
|
$ 3,424
|
|
$ 3,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
487.59
|
|
487.35
|
|
467.38
|
|
466.32
|
|
437.74
|
|
|
|
|
Less: Shares
classified as treasury shares
|
|
89.01
|
|
89.01
|
|
89.01
|
|
89.03
|
|
89.02
|
|
|
|
|
Unallocated ESOP
shares
|
|
6.01
|
|
6.10
|
|
6.19
|
|
6.27
|
|
6.36
|
|
|
|
|
Common
shares
|
|
392.57
|
|
392.24
|
|
372.18
|
|
371.02
|
|
342.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$ 9.74
|
|
$ 9.51
|
|
$ 9.35
|
|
$ 9.23
|
|
$ 9.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-third-quarter-net-income-of-135-1-million-or-0-33-per-common-share-300940837.html
SOURCE People's United Financial, Inc.