BRIDGEPORT, Conn., April 23, 2020 /PRNewswire/ -- People's United
Financial, Inc. (NASDAQ: PBCT) today reported results for the first
quarter 2020. These results along with comparison periods are
summarized below:
![(PRNewsfoto/People's United Financial, Inc.) (PRNewsfoto/People's United Financial, Inc.)](https://mma.prnewswire.com/media/789867/PUFI_Logo.jpg)
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($ in millions,
except per common share data)
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Three Months
Ended
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Mar. 31,
2020
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Dec. 31,
2019
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Mar. 31,
2019
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|
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Net income
|
|
$
130.4
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$
137.5
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$
114.6
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Net income
available
|
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126.9
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134.0
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111.1
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to common
shareholders
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Per common
share
|
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0.30
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|
0.31
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0.30
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Operating
earnings1
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141.1
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158.8
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123.0
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Per common
share
|
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0.33
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|
0.37
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0.33
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Net interest
income
|
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$
396.0
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$
382.7
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$
332.8
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Net interest
margin
|
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3.12%
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3.14%
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3.20%
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Non-interest
income
|
|
123.8
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|
124.2
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|
94.6
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Operating
non-interest income1
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123.8
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116.6
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94.6
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Non-interest
expense
|
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$
320.1
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$
325.7
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$
277.2
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Operating
non-interest expense1
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302.2
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286.6
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262.2
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Efficiency
ratio
|
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54.0%
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53.7%
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57.3%
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Average
balances
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Loans
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$
43,460
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$
42,006
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$
35,046
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Deposits
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44,163
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42,195
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36,450
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Period-end
balances
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Loans
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44,284
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43,596
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35,515
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Deposits
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44,741
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43,590
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36,901
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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"The nation is facing significant challenges from the spread of
COVID-19," said Jack Barnes,
Chairman and Chief Executive Officer. "People's United is committed
to supporting those experiencing hardship due to the pandemic. We
are in this together, and difficult times often bring forth the
very best in all of us. We have witnessed this each day through the
dedication of our employees, including our branch and call center
personnel continuing to serve customers despite unprecedented
conditions, and our IT group who successfully enabled the majority
of our workforce to do their jobs remotely. The Company has always
had a long-term view, predicated on a conservative underwriting
philosophy, superior service, a diversified business mix and
prudent liquidity and capital management, which has served it well
through various operating environments. We are confident this
strategy will once again show the strength of the franchise as it
plays a critical role in supporting the financial health of
individuals, businesses and communities throughout this crisis and
beyond."
"While the economic impact of COVID-19 will have a meaningful
effect on results for the remainder of 2020, our first quarter
performance marked a strong start to the year," stated David Rosato, Senior Executive Vice President
and Chief Financial Officer. "Operating income of $141 million increased 15 percent from a year ago
and generated an operating return on tangible common equity of 13.2
percent. We continued to produce positive operating leverage as
evidenced by a 330 basis point improvement year-over-year in the
efficiency ratio to 54.0 percent. Total revenues of $520 million were up 22 percent driven by both
recent acquisitions and organic growth. Non-interest income had
another good quarter primarily due to a $16.9 million gain related to the sale of
$492 million of loans held-for-sale
previously acquired in the United transaction as well as a
continued high-level of customer interest rate swap income.
Period-end loans and deposits increased two percent and three
percent, respectively, from year-end. Loans benefited from strong
results in mortgage warehouse lending and large corporate,
partially offset by our planned reduction in residential mortgages.
Deposit growth was driven primarily by solid results in both our
municipal and commercial businesses and overall deposit costs
decreased 11 basis points linked-quarter."
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As of and for
the Three Months Ended
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Mar. 31,
2020
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Dec. 31,
2019
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Mar. 31,
2019
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Asset
Quality
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Net loan
charge-offs
|
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0.10%
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0.06%
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0.06%
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to average total
loans
|
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Non-performing
loans
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0.54%
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0.51%
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0.54%
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as a percentage of
total loans1
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Returns
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Return on average
assets2
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0.89%
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0.98%
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0.96%
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Return on average
tangible common equity2
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11.8%
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12.8%
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13.0%
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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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7.4%
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8.0%
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7.7%
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Tier 1
leverage
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8.4%
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9.1%
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8.8%
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Common equity tier
1
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9.5%
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10.2%
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10.2%
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Tier 1
risk-based
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10.0%
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10.7%
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10.8%
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Total
risk-based
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11.3%
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12.0%
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12.4%
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People's United Bank,
N.A.
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Tier 1
leverage
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8.9%
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9.3%
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9.0%
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Common equity tier
1
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10.7%
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10.9%
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11.2%
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Tier 1
risk-based
|
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10.7%
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10.9%
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11.2%
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Total
risk-based
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12.0%
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12.1%
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12.9%
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1Ratios
for periods prior to January 1, 2020 have been restated to reflect
the total loan portfolio (originated & acquired)
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2See
Non-GAAP Financial Measures and Reconciliation to GAAP
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During the quarter, the Company repurchased 19.8 million common
shares through March 9th
at a total cost of $304 million,
completing the common stock repurchase program authorized by the
Company's Board of Directors in 2019. In addition, the Board
voted to increase the common stock dividend for the 27th
consecutive year to an annual rate of $0.72 per share. Based on the closing stock
price on April 22, 2020, the dividend
yield on People's United Financial common stock is 6.6
percent. The quarterly dividend of $0.18 per share is payable May 15, 2020 to shareholders of record on
May 1, 2020.
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 over
$60 billion in assets. Founded in
1842, People's United Bank offers commercial and retail banking
through a network of over 400 retail locations in Connecticut, New
York, Massachusetts,
Vermont, New Hampshire and Maine, as well as wealth management and
insurance solutions. The company also provides specialized
commercial services to customers nationwide.
1Q 2020 Financial Highlights
Summary
- Net income totaled $130.4
million, or $0.30 per common
share.
-
- Net income available to common shareholders totaled
$126.9 million.
- Operating earnings totaled $141.1
million, or $0.33 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $396.0
million in 1Q20 compared to $382.7
million in 4Q19.
- Net interest margin decreased two basis points from 4Q19 to
3.12% reflecting:
-
- Lower rates on deposits (increase of six basis points).
- Lower rates on borrowings (increase of two basis points).
- Lower yields on the loan portfolio (decrease of eight basis
points).
- One less calendar day in 1Q20 (decrease of two basis
points).
- Provision for credit losses totaled $33.5 million.
-
- Provision increase of $22.9
million reflects the application of CECL and the impact of
COVID-19.
- Net loan charge-offs totaled $10.6
million.
- Net loan charge-off ratio of 0.10% in 1Q20.
- Non-interest income totaled $123.8
million in 1Q20 compared to $124.2
million in 4Q19.
-
- Insurance revenue increased $3.4
million.
- Investment management fees decreased $1.2 million.
- Bank service charges decreased $0.9
million.
- Commercial banking lending fees decreased $0.8 million.
- Other non-interest income includes net gains on loans
held-for-sale of $16.9 million in
1Q20 and a $7.6 million net gain on
the sale of eight branches in 4Q19.
- At March 31, 2020, assets under
discretionary management totaled $7.8
billion.
- Non-interest expense totaled $320.1
million in 1Q20 compared to $325.7
million in 4Q19.
-
- Operating non-interest expense totaled $302.2 million in 1Q20 and $286.6 million in 4Q19 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $0.4 million and $7.5
million of merger-related expenses in 1Q20 and 4Q19,
respectively, increased $9.6 million,
primarily reflecting seasonally higher payroll and benefit-related
costs in 1Q20.
- Regulatory assessment expense increased $1.4 million.
- Professional and outside services expense, excluding
$15.1 million and $5.6 million of merger-related expenses in 1Q20
and 4Q19, respectively, decreased $0.6
million.
- Other non-interest expense includes merger-related expenses of
$1.9 million in 1Q20 and $8.9 million in 4Q19. Also included in 4Q19 is a
$16.5 million charge associated with
the complete write-down of an intangible asset (see Non-GAAP
Financial Measures and Reconciliation to GAAP).
- The efficiency ratio was 54.0% for 1Q20 compared to 53.7% for
4Q19 and 57.3% for 1Q19 (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 21.5% for 1Q20 compared to
20.2% for the full-year of 2019.
Commercial Banking
- Commercial loans totaled $31.7
billion at March 31, 2020, an
increase of $1.0 billion from
December 31, 2019.
-
- The mortgage warehouse portfolio increased $596 million.
- The equipment financing portfolio increased $102 million.
- The New York multifamily
portfolio decreased $45 million.
- Average commercial loans totaled $30.5
billion in 1Q20, an increase of $1.1
billion from 4Q19.
-
- The average equipment financing portfolio increased
$131 million.
- The average mortgage warehouse portfolio decreased $227 million.
- The average New York
multifamily portfolio decreased $42
million.
- Commercial deposits totaled $17.7
billion at March 31, 2020
compared to $16.6 billion at
December 31, 2019.
- The ratio of non-performing commercial loans to commercial
loans was 0.48% at March 31,
2020.
- Non-performing commercial assets totaled $163.5 million at March
31, 2020.
- For the commercial loan portfolio, the allowance for credit
losses as a percentage of commercial loans was 0.67% at
March 31, 2020.
- The commercial allowance for credit losses represented 140% of
non-performing commercial loans at March 31,
2020.
Retail Banking
- Residential mortgage loans totaled $10.1
billion at March 31, 2020, a
decrease of $236 million from
December 31, 2019.
-
- Average residential mortgage loans totaled $10.2 billion in 1Q20, an increase of
$217 million from 4Q19.
- Home equity loans totaled $2.3
billion at March 31, 2020, a
decrease of $57 million from
December 31, 2019.
-
- Average home equity loans totaled $2.4
billion in 1Q20, an increase of $108
million from 4Q19.
- Retail deposits totaled $27.0
billion at both March 31, 2020
and December 31, 2019.
- The ratio of non-performing residential mortgage loans to
residential mortgage loans was 0.66% at March 31, 2020.
- The ratio of non-performing home equity loans to home equity
loans was 0.94% at March 31,
2020.
- For the retail loan portfolio, the allowance for credit losses
as a percentage of retail loans was 1.03% at March 31, 2020.
- The retail allowance for credit losses represented 146% of
non-performing retail loans at March 31,
2020.
Conference Call
On April 23,
2020, 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; (10) changes in regulation resulting from or relating
to financial reform legislation; and (11) the COVID-19 pandemic and
its effect on the economic and business environment in which we
operate. People's United Financial does not undertake any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Access Information About People's United
Financial at www.peoples.com.
People's United
Financial, Inc.
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FINANCIAL
HIGHLIGHTS
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As of and for the
Three Months Ended
|
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March 31,
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Dec. 31,
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Sept. 30,
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June 30,
|
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March 31,
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(dollars in millions,
except per common share data)
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2020
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2019
|
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2019
|
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2019
|
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2019
|
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Earnings
Data:
|
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|
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Net interest
income (fully taxable equivalent)
|
$
|
403.7
|
$
|
390.3
|
$
|
356.0
|
$
|
355.4
|
$
|
340.0
|
|
Net interest
income
|
|
396.0
|
|
382.7
|
|
348.7
|
|
348.1
|
|
332.8
|
|
Provision for
credit losses (1)
|
|
33.5
|
|
7.3
|
|
7.8
|
|
7.6
|
|
5.6
|
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Non-interest
income (2)
|
|
123.8
|
|
124.2
|
|
106.0
|
|
106.3
|
|
94.6
|
|
Non-interest
expense (2)
|
|
320.1
|
|
325.7
|
|
281.4
|
|
278.4
|
|
277.2
|
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Income before
income tax expense
|
|
166.2
|
|
173.9
|
|
165.5
|
|
168.4
|
|
144.6
|
|
Net
income
|
|
130.4
|
|
137.5
|
|
135.1
|
|
133.2
|
|
114.6
|
|
Net income
available to common shareholders (2)
|
|
126.9
|
|
134.0
|
|
131.6
|
|
129.7
|
|
111.1
|
|
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Selected
Statistical Data:
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Net interest
margin (3)
|
|
3.12
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%
|
3.14
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%
|
3.12
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%
|
3.12
|
%
|
3.20
|
%
|
Return on
average assets (2), (3)
|
|
0.89
|
|
0.98
|
|
1.05
|
|
1.04
|
|
0.96
|
|
Return on
average common equity (3)
|
|
6.7
|
|
7.2
|
|
7.7
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|
7.7
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|
7.0
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Return on
average tangible common equity (2), (3)
|
|
11.8
|
|
12.8
|
|
14.0
|
|
14.1
|
|
13.0
|
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Efficiency
ratio (2)
|
|
54.0
|
|
53.7
|
|
56.8
|
|
55.8
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57.3
|
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Common Share
Data:
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Earnings per
common share:
|
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Basic
|
$
|
0.30
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$
|
0.31
|
$
|
0.34
|
$
|
0.33
|
$
|
0.30
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Diluted (2)
|
|
0.30
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|
0.31
|
|
0.33
|
|
0.33
|
|
0.30
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|
Dividends paid
per common share
|
|
0.1775
|
|
0.1775
|
|
0.1775
|
|
0.1775
|
|
0.1750
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Common
dividend payout ratio (2)
|
|
60.9
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%
|
52.2
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%
|
53.1
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%
|
53.8
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%
|
58.6
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%
|
Book value per
common share
|
$
|
17.67
|
$
|
17.60
|
$
|
17.54
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$
|
17.34
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$
|
17.13
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|
Tangible book
value per common share (2)
|
|
9.96
|
|
10.12
|
|
9.74
|
|
9.51
|
|
9.35
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Stock
price:
|
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High
|
|
17.00
|
|
17.22
|
|
17.10
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|
17.66
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|
18.03
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Low
|
|
10.40
|
|
14.73
|
|
13.81
|
|
15.24
|
|
14.25
|
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Close
|
|
11.05
|
|
16.90
|
|
15.64
|
|
16.78
|
|
16.44
|
|
Common shares
oustanding (in millions) (2)
|
|
429.38
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|
443.66
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|
398.58
|
|
398.34
|
|
378.37
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Weighted
average diluted common shares (in millions)
|
429.77
|
|
424.98
|
|
394.45
|
|
394.57
|
|
374.09
|
|
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(1) First quarter
2020 provision for credit losses reflects the application of CECL
and the impact of COVID-19.
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(2) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
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(3)
Annualized.
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|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
60,433
|
$
|
58,590
|
$
|
52,072
|
$
|
51,622
|
$
|
48,092
|
|
Loans
|
|
44,284
|
|
43,596
|
|
38,781
|
|
38,557
|
|
35,515
|
|
Securities
|
|
8,552
|
|
7,790
|
|
7,135
|
|
7,086
|
|
7,176
|
|
Short-term investments
|
|
744
|
|
317
|
|
158
|
|
275
|
|
106
|
|
Allowance for credit losses (1)
|
|
342
|
|
247
|
|
246
|
|
244
|
|
241
|
|
Goodwill and other acquisition-related intangible assets
|
3,264
|
|
3,275
|
|
3,065
|
|
3,073
|
|
2,897
|
|
Deposits
|
|
44,741
|
|
43,590
|
|
38,574
|
|
39,467
|
|
36,901
|
|
Borrowings
|
|
5,911
|
|
5,155
|
|
4,629
|
|
3,400
|
|
2,860
|
|
Notes and debentures
|
|
1,013
|
|
993
|
|
916
|
|
912
|
|
902
|
|
Stockholders' equity
|
|
7,726
|
|
7,947
|
|
7,131
|
|
7,046
|
|
6,621
|
|
Total risk-weighted assets (2):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
46,414
|
|
45,208
|
|
39,794
|
|
39,026
|
|
36,466
|
|
People's United
Bank, N.A.
|
|
46,403
|
|
45,174
|
|
39,742
|
|
38,976
|
|
36,447
|
|
Non-performing loans (3)
|
|
240
|
|
224
|
|
176
|
|
198
|
|
193
|
|
Net loan charge-offs
|
|
10.6
|
|
6.7
|
|
5.8
|
|
4.5
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
43,460
|
$
|
42,006
|
$
|
38,317
|
$
|
38,229
|
$
|
35,046
|
|
Securities (4)
|
|
8,018
|
|
7,372
|
|
7,041
|
|
7,147
|
|
7,311
|
|
Short-term investments
|
|
290
|
|
294
|
|
219
|
|
214
|
|
203
|
|
Total earning assets
|
|
51,768
|
|
49,673
|
|
45,577
|
|
45,591
|
|
42,560
|
|
Total assets
|
|
58,604
|
|
56,130
|
|
51,524
|
|
51,088
|
|
47,800
|
|
Deposits
|
|
44,163
|
|
42,195
|
|
38,657
|
|
39,211
|
|
36,450
|
|
Borrowings
|
|
4,353
|
|
4,146
|
|
3,855
|
|
3,146
|
|
2,937
|
|
Notes and debentures
|
|
1,000
|
|
974
|
|
914
|
|
904
|
|
896
|
|
Total funding liabilities
|
|
49,515
|
|
47,314
|
|
43,427
|
|
43,261
|
|
40,284
|
|
Stockholders' equity
|
|
7,804
|
|
7,654
|
|
7,079
|
|
6,978
|
|
6,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
0.10
|
%
|
0.06
|
%
|
0.06
|
%
|
0.05
|
%
|
0.06
|
%
|
Non-performing assets to total loans, real estate owned
|
|
|
|
|
|
|
|
|
|
|
and repossessed assets
(1)
|
|
0.59
|
|
0.57
|
|
0.52
|
|
0.55
|
|
0.59
|
|
Allowance for credit losses to (1):
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.77
|
|
0.57
|
|
0.63
|
|
0.63
|
|
0.68
|
|
Non-performing
loans
|
|
142.2
|
|
110.0
|
|
139.5
|
|
122.9
|
|
124.5
|
|
Average stockholders' equity to average total assets
|
|
13.3
|
|
13.6
|
|
13.7
|
|
13.7
|
|
13.7
|
|
Stockholders' equity to total assets
|
|
12.8
|
|
13.6
|
|
13.7
|
|
13.6
|
|
13.8
|
|
Tangible common equity to tangible assets (5)
|
|
7.4
|
|
8.0
|
|
7.8
|
|
7.7
|
|
7.7
|
|
Total risk-based capital (2):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
11.3
|
|
12.0
|
|
12.0
|
|
12.0
|
|
12.4
|
|
People's United
Bank, N.A.
|
|
12.0
|
|
12.1
|
|
12.2
|
|
12.4
|
|
12.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Allowance for
credit losses and asset quality ratios for March 31, 2020 reflect
the initial adoption and application of CECL.
|
Ratios for periods
prior to January 1, 2020 have been restated to reflect the total
loan portfolio (originated and acquired).
|
(2) March 31, 2020
amounts and ratios are preliminary.
|
|
|
|
|
|
|
|
|
|
|
|
(3) See
NON-PERFORMING ASSETS.
|
|
|
|
|
|
|
|
|
|
|
|
(4) Average balances
for securities are based on amortized cost.
|
|
|
|
|
|
|
|
|
|
(5) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF CONDITION
|
|
|
|
|
|
|
|
|
March
31,
|
Dec. 31,
|
March 31,
|
(in
millions)
|
2020
|
2019
|
2019
|
Assets
|
|
|
|
Cash and due from
banks
|
$
507.6
|
$
484.2
|
$
508.5
|
Short-term
investments
|
744.3
|
316.8
|
106.0
|
Securities:
|
|
|
|
Trading debt
securities, at fair value
|
-
|
7.1
|
8.3
|
Equity
securities, at fair value
|
6.2
|
8.2
|
8.2
|
Debt
securities available-for-sale, at fair value
|
4,276.6
|
3,564.3
|
3,060.0
|
Debt
securities held-to-maturity, at amortized cost
|
3,861.5
|
3,869.2
|
3,823.4
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
407.2
|
341.1
|
275.6
|
Total securities
|
8,551.5
|
7,789.9
|
7,175.5
|
Loans
held-for-sale
|
19.2
|
511.3
|
7.8
|
Loans:
|
|
|
|
Commercial
real estate
|
14,651.6
|
14,762.3
|
11,591.2
|
Commercial and
industrial
|
12,045.7
|
11,041.6
|
9,354.7
|
Equipment
financing
|
5,012.7
|
4,910.4
|
4,466.1
|
Total Commercial Portfolio
|
31,710.0
|
30,714.3
|
25,412.0
|
Residential
mortgage
|
10,081.9
|
10,318.1
|
8,163.1
|
Home equity
and other consumer
|
2,492.1
|
2,563.7
|
1,940.1
|
Total Retail Portfolio
|
12,574.0
|
12,881.8
|
10,103.2
|
Total loans
|
44,284.0
|
43,596.1
|
35,515.2
|
Less allowance
for credit losses
|
(341.7)
|
(246.6)
|
(240.9)
|
Total loans, net
|
43,942.3
|
43,349.5
|
35,274.3
|
Goodwill and other
acquisition-related intangible assets
|
3,264.0
|
3,274.6
|
2,896.5
|
Bank-owned life
insurance
|
707.6
|
705.0
|
467.8
|
Premises and
equipment, net
|
300.8
|
305.5
|
255.8
|
Other
assets
|
2,396.0
|
1,853.0
|
1,399.7
|
Total assets
|
$
60,433.3
|
$
58,589.8
|
$
48,091.9
|
|
|
|
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
10,526.0
|
$
9,803.7
|
$
8,315.6
|
Savings
|
5,136.0
|
4,987.7
|
4,159.1
|
Interest-bearing checking and money market
|
20,238.9
|
19,592.6
|
17,130.0
|
Time
|
8,840.2
|
9,205.5
|
7,296.2
|
Total deposits
|
44,741.1
|
43,589.5
|
36,900.9
|
Borrowings:
|
|
|
|
Federal Home
Loan Bank advances
|
4,489.7
|
3,125.4
|
1,573.2
|
Federal funds
purchased
|
1,120.0
|
1,620.0
|
1,020.0
|
Customer
repurchase agreements
|
301.1
|
409.1
|
264.8
|
Other
borrowings
|
-
|
-
|
1.6
|
Total borrowings
|
5,910.8
|
5,154.5
|
2,859.6
|
Notes and
debentures
|
1,012.6
|
993.1
|
901.6
|
Other
liabilities
|
1,043.3
|
905.5
|
808.6
|
Total liabilities
|
52,707.8
|
50,642.6
|
41,470.7
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
Common
stock
|
5.3
|
5.3
|
4.7
|
Additional paid-in
capital
|
7,644.4
|
7,639.4
|
6,558.8
|
Retained
earnings
|
1,514.5
|
1,512.8
|
1,328.6
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(121.1)
|
(122.9)
|
(128.3)
|
Accumulated other
comprehensive loss
|
(92.7)
|
(166.9)
|
(224.6)
|
Treasury stock, at
cost
|
(1,469.0)
|
(1,164.6)
|
(1,162.1)
|
Total stockholders' equity
|
7,725.5
|
7,947.2
|
6,621.2
|
Total liabilities and stockholders' equity
|
$
60,433.3
|
$
58,589.8
|
$
48,091.9
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in millions, except
per common share data)
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
149.6
|
|
$
147.2
|
|
$
136.6
|
|
$
139.9
|
|
$
132.7
|
Commercial and
industrial
|
106.4
|
|
114.9
|
|
113.4
|
|
111.4
|
|
103.9
|
Equipment
financing
|
68.2
|
|
66.7
|
|
65.3
|
|
62.8
|
|
59.0
|
Residential
mortgage
|
90.4
|
|
88.2
|
|
84.7
|
|
85.5
|
|
70.7
|
Home equity
and other consumer
|
28.0
|
|
30.8
|
|
24.7
|
|
25.7
|
|
24.9
|
Total interest on loans
|
442.6
|
|
447.8
|
|
424.7
|
|
425.3
|
|
391.2
|
Securities
|
51.2
|
|
47.8
|
|
44.7
|
|
46.2
|
|
47.8
|
Loans
held-for-sale
|
3.3
|
|
0.3
|
|
0.2
|
|
0.1
|
|
0.2
|
Short-term
investments
|
2.0
|
|
1.0
|
|
1.3
|
|
1.2
|
|
1.3
|
Total interest and dividend income
|
499.1
|
|
496.9
|
|
470.9
|
|
472.8
|
|
440.5
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
78.9
|
|
86.9
|
|
92.2
|
|
96.6
|
|
81.2
|
Borrowings
|
15.4
|
|
18.5
|
|
21.5
|
|
19.3
|
|
17.7
|
Notes and
debentures
|
8.8
|
|
8.8
|
|
8.5
|
|
8.8
|
|
8.8
|
Total interest expense
|
103.1
|
|
114.2
|
|
122.2
|
|
124.7
|
|
107.7
|
Net interest income
|
396.0
|
|
382.7
|
|
348.7
|
|
348.1
|
|
332.8
|
Provision for credit
losses (1)
|
33.5
|
|
7.3
|
|
7.8
|
|
7.6
|
|
5.6
|
Net interest income after provision for credit losses
|
362.5
|
|
375.4
|
|
340.9
|
|
340.5
|
|
327.2
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
28.0
|
|
28.9
|
|
27.0
|
|
26.4
|
|
25.2
|
Investment
management fees
|
18.1
|
|
19.3
|
|
19.9
|
|
19.7
|
|
19.3
|
Operating
lease income
|
12.6
|
|
12.7
|
|
12.9
|
|
12.6
|
|
12.7
|
Commercial
banking lending fees
|
12.1
|
|
12.9
|
|
11.8
|
|
10.2
|
|
7.8
|
Insurance
revenue
|
10.9
|
|
7.5
|
|
10.3
|
|
8.7
|
|
10.5
|
Customer
interest rate swap income, net
|
8.8
|
|
8.5
|
|
5.5
|
|
7.3
|
|
2.8
|
Cash
management fees
|
7.4
|
|
7.1
|
|
7.3
|
|
7.2
|
|
6.8
|
Other
non-interest income (2)
|
25.9
|
|
27.3
|
|
11.3
|
|
14.2
|
|
9.5
|
Total non-interest income
|
123.8
|
|
124.2
|
|
106.0
|
|
106.3
|
|
94.6
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
173.9
|
|
171.4
|
|
158.1
|
|
161.3
|
|
155.4
|
Occupancy and
equipment
|
51.0
|
|
52.2
|
|
45.0
|
|
44.4
|
|
44.3
|
Professional
and outside services
|
38.5
|
|
29.6
|
|
23.7
|
|
24.9
|
|
20.0
|
Amortization
of other acquisition-related intangible assets
|
10.7
|
|
9.8
|
|
8.0
|
|
8.0
|
|
6.7
|
Operating
lease expense
|
9.8
|
|
9.6
|
|
9.9
|
|
9.9
|
|
9.4
|
Regulatory
assessments
|
8.7
|
|
7.3
|
|
5.3
|
|
6.5
|
|
7.0
|
Other
non-interest expense
|
27.5
|
|
45.8
|
|
31.4
|
|
23.4
|
|
34.4
|
Total non-interest expense (2)
|
320.1
|
|
325.7
|
|
281.4
|
|
278.4
|
|
277.2
|
Income before income tax expense
|
166.2
|
|
173.9
|
|
165.5
|
|
168.4
|
|
144.6
|
Income tax
expense
|
35.8
|
|
36.4
|
|
30.4
|
|
35.2
|
|
30.0
|
Net income
|
130.4
|
|
137.5
|
|
135.1
|
|
133.2
|
|
114.6
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
Net income available to common shareholders
|
$
126.9
|
|
$
134.0
|
|
$
131.6
|
|
$
129.7
|
|
$
111.1
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.30
|
|
$
0.31
|
|
$
0.34
|
|
$
0.33
|
|
$
0.30
|
Diluted
|
0.30
|
|
0.31
|
|
0.33
|
|
0.33
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
(1) Provision for
credit losses for the three months ended March 31, 2020 reflects
the application of CECL and the
|
impact of
COVID-19.
|
|
|
|
|
|
|
|
|
|
(2) Other
non-interest income includes $7.6 million of non-operating income
for the three months ended December 31, 2019.
|
Total non-interest
expense includes $17.9 million, $39.1 million, $5.0 million, $6.5
million and $15.0 million of non-operating
|
expenses for the three
months ended March 31, 2020, December 31, 2019, September 30, 2019,
June 30, 2019 and
|
March 31, 2019,
respectively. See Non-GAAP Financial Measures and
Reconciliation to GAAP.
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
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
|
$
289.8
|
$
2.0
|
2.70%
|
|
$
294.4
|
$
1.0
|
1.39%
|
|
$
202.8
|
$
1.3
|
2.60%
|
Securities
(2)
|
8,018.0
|
56.0
|
2.80
|
|
7,372.2
|
52.6
|
2.85
|
|
7,310.6
|
52.4
|
2.87
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
14,715.3
|
149.6
|
4.07
|
|
13,793.2
|
147.2
|
4.27
|
|
11,588.3
|
132.7
|
4.58
|
Commercial and
industrial
|
10,866.6
|
109.8
|
4.04
|
|
10,805.1
|
117.7
|
4.36
|
|
8,974.0
|
106.5
|
4.74
|
Equipment
financing
|
4,915.6
|
68.2
|
5.55
|
|
4,785.0
|
66.7
|
5.58
|
|
4,357.7
|
59.0
|
5.42
|
Residential
mortgage
|
10,236.3
|
90.5
|
3.54
|
|
10,019.0
|
88.5
|
3.53
|
|
8,153.6
|
70.9
|
3.48
|
Home equity
and other consumer
|
2,726.1
|
30.7
|
4.51
|
|
2,603.8
|
30.8
|
4.72
|
|
1,972.9
|
24.9
|
5.05
|
Total loans
|
43,459.9
|
448.8
|
4.13
|
|
42,006.1
|
450.9
|
4.29
|
|
35,046.5
|
394.0
|
4.50
|
Total earning assets
|
51,767.7
|
$ 506.8
|
3.92%
|
|
49,672.7
|
$ 504.5
|
4.06%
|
|
42,559.9
|
$ 447.7
|
4.21%
|
Other
assets
|
6,836.0
|
|
|
|
6,457.2
|
|
|
|
5,240.3
|
|
|
Total assets
|
$
58,603.7
|
|
|
|
$
56,129.9
|
|
|
|
$
47,800.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
10,077.8
|
$
-
|
- %
|
|
$
9,593.6
|
$
-
|
- %
|
|
$
8,301.3
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
24,940.7
|
44.1
|
0.71
|
|
23,674.3
|
49.7
|
0.84
|
|
21,018.0
|
48.8
|
0.93
|
Time
|
9,144.6
|
34.8
|
1.52
|
|
8,926.8
|
37.2
|
1.67
|
|
7,130.8
|
32.4
|
1.82
|
Total deposits
|
44,163.1
|
78.9
|
0.71
|
|
42,194.7
|
86.9
|
0.82
|
|
36,450.1
|
81.2
|
0.89
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
2,430.6
|
9.8
|
1.61
|
|
2,287.7
|
11.4
|
1.99
|
|
1,890.1
|
12.4
|
2.64
|
Federal funds
purchased
|
1,593.9
|
5.1
|
1.28
|
|
1,489.3
|
6.4
|
1.73
|
|
751.9
|
4.7
|
2.52
|
Customer
repurchase agreements
|
328.0
|
0.5
|
0.67
|
|
369.2
|
0.7
|
0.73
|
|
286.2
|
0.5
|
0.65
|
Other
borrowings
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
9.0
|
0.1
|
2.43
|
Total borrowings
|
4,352.5
|
15.4
|
1.42
|
|
4,146.2
|
18.5
|
1.78
|
|
2,937.2
|
17.7
|
2.41
|
Notes and
debentures
|
999.5
|
8.8
|
3.51
|
|
973.5
|
8.8
|
3.61
|
|
896.3
|
8.8
|
3.93
|
Total funding liabilities
|
49,515.1
|
$ 103.1
|
0.83%
|
|
47,314.4
|
$ 114.2
|
0.96%
|
|
40,283.6
|
$ 107.7
|
1.07%
|
Other
liabilities
|
1,284.3
|
|
|
|
1,161.3
|
|
|
|
954.3
|
|
|
Total liabilities
|
50,799.4
|
|
|
|
48,475.7
|
|
|
|
41,237.9
|
|
|
Stockholders'
equity
|
7,804.3
|
|
|
|
7,654.2
|
|
|
|
6,562.3
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
58,603.7
|
|
|
|
$
56,129.9
|
|
|
|
$
47,800.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 403.7
|
3.09%
|
|
|
$ 390.3
|
3.10%
|
|
|
$ 340.0
|
3.14%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.12%
|
|
|
|
3.14%
|
|
|
|
3.20%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $7.7 million, $7.6 million and $7.2
million for the three months ended
|
March 31, 2020,
December 31, 2019 and March 31, 2019, respectively.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a result of
People's United Financial's adoption of CECL effective January 1,
2020, the distinction between the originated
|
and acquired loan
portfolios is no longer necessary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
Non-performing
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
53.5
|
$
|
29.8
|
$
|
25.1
|
$
|
23.2
|
$
|
33.6
|
|
Commercial and
industrial
|
|
55.6
|
|
32.1
|
|
37.7
|
|
45.4
|
|
30.3
|
|
Equipment
financing
|
|
42.5
|
|
46.2
|
|
41.5
|
|
42.7
|
|
37.5
|
|
Total Commercial
|
|
151.6
|
|
108.1
|
|
104.3
|
|
111.3
|
|
101.4
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
66.6
|
|
36.3
|
|
36.6
|
|
38.4
|
|
35.4
|
|
Home
equity
|
|
22.1
|
|
12.6
|
|
14.3
|
|
14.7
|
|
14.1
|
|
Other
consumer
|
|
0.1
|
|
-
|
|
0.1
|
|
-
|
|
-
|
|
Total Retail
|
|
88.8
|
|
48.9
|
|
51.0
|
|
53.1
|
|
49.5
|
|
Subtotal
|
|
240.4
|
|
157.0
|
|
155.3
|
|
164.4
|
|
150.9
|
|
Acquired
non-performing loans (contractual amount)
|
-
|
|
67.1
|
|
21.1
|
|
34.1
|
|
42.6
|
|
Total non-performing loans (1), (2)
|
$
|
240.4
|
$
|
224.1
|
$
|
176.4
|
$
|
198.5
|
$
|
193.5
|
|
REO:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
$
|
9.5
|
$
|
11.9
|
$
|
12.3
|
$
|
8.1
|
$
|
6.9
|
|
Commercial
|
|
7.3
|
|
7.3
|
|
7.7
|
|
0.6
|
|
4.1
|
|
Total REO
|
$
|
16.8
|
$
|
19.2
|
$
|
20.0
|
$
|
8.7
|
$
|
11.0
|
|
Repossessed
assets
|
$
|
4.6
|
$
|
4.2
|
$
|
6.3
|
$
|
5.7
|
$
|
5.6
|
|
Total non-performing assets (2)
|
$
|
261.8
|
$
|
247.5
|
$
|
202.7
|
$
|
212.9
|
$
|
210.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
as a percentage of total loans (3)
|
0.54
|
%
|
0.51
|
%
|
0.45
|
%
|
0.51
|
%
|
0.54
|
%
|
Non-performing assets
as a percentage of (3):
|
|
|
|
|
|
|
|
|
|
|
|
Total loans,
REO and repossessed assets
|
|
0.59
|
|
0.57
|
|
0.52
|
|
0.55
|
|
0.59
|
|
Tangible
stockholders' equity and allowance
|
|
|
|
|
|
|
|
|
|
|
|
for credit losses
|
|
5.45
|
|
5.03
|
|
4.70
|
|
5.05
|
|
5.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $1.2 million at March 31, 2020, $1.3
million at December 31, 2019,
|
$1.4 million at
September 30, 2019, $1.6 million at June 30, 2019 and $1.4 million
at March 31, 2019.
|
|
|
|
(2) Total
non-performing loans and non-performing assets for periods prior to
January 1, 2020 have been restated to include
|
acquired
loans.
|
|
|
|
|
|
|
|
|
|
|
|
(3) Ratios for
periods prior to January 1, 2020 have been restated to reflect the
total loan portfolio (originated and acquired).
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
Allowance for
credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period (1)
|
$
|
246.6
|
$
|
242.3
|
$
|
240.1
|
$
|
236.9
|
$
|
236.3
|
|
Charge-offs
(1)
|
|
(12.6)
|
|
(7.2)
|
|
(6.8)
|
|
(4.4)
|
|
(5.6)
|
|
Recoveries
(1)
|
|
2.0
|
|
1.6
|
|
2.1
|
|
2.2
|
|
2.2
|
|
Net loan charge-offs (1)
|
|
(10.6)
|
|
(5.6)
|
|
(4.7)
|
|
(2.2)
|
|
(3.4)
|
|
Provision for
credit losses (1)
|
|
33.5
|
|
8.8
|
|
6.9
|
|
5.4
|
|
4.0
|
|
CECL
transition adjustment
|
|
72.2
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Balance at end of period (1)
|
|
341.7
|
|
245.5
|
|
242.3
|
|
240.1
|
|
236.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
credit losses on acquired loans:
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
N/A
|
|
3.7
|
|
3.9
|
|
4.0
|
|
4.1
|
|
Charge-offs
|
|
N/A
|
|
(1.3)
|
|
(1.4)
|
|
(2.9)
|
|
(1.9)
|
|
Recoveries
|
|
N/A
|
|
0.2
|
|
0.3
|
|
0.6
|
|
0.2
|
|
Net loan charge-offs
|
|
N/A
|
|
(1.1)
|
|
(1.1)
|
|
(2.3)
|
|
(1.7)
|
|
Provision for
loan losses
|
|
N/A
|
|
(1.5)
|
|
0.9
|
|
2.2
|
|
1.6
|
|
Balance at end of period
|
|
N/A
|
|
1.1
|
|
3.7
|
|
3.9
|
|
4.0
|
|
Total allowance for credit losses
|
$
|
341.7
|
$
|
246.6
|
$
|
246.0
|
$
|
244.0
|
$
|
240.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percentage of (2):
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.77
|
%
|
0.57
|
%
|
0.63
|
%
|
0.63
|
%
|
0.68
|
%
|
Non-performing loans
|
|
142.2
|
|
110.0
|
|
139.5
|
|
122.9
|
|
124.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A - not
applicable
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts for
periods prior to January 1, 2020 reflect only the originated loan
portfolio.
|
|
|
|
(2) Ratios for
periods prior to January 1, 2020 have been restated to reflect the
total loan portfolio (originated and
|
acquired).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
3.4
|
$
|
(0.1)
|
$
|
(0.2)
|
$
|
0.1
|
$
|
1.1
|
|
Commercial and
industrial
|
|
1.0
|
|
2.3
|
|
1.6
|
|
0.2
|
|
1.7
|
|
Equipment
financing
|
|
3.9
|
|
4.2
|
|
4.2
|
|
3.9
|
|
2.2
|
|
Total
|
|
8.3
|
|
6.4
|
|
5.6
|
|
4.2
|
|
5.0
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
0.8
|
|
(0.2)
|
|
-
|
|
0.1
|
|
0.1
|
|
Home
equity
|
|
0.1
|
|
0.3
|
|
-
|
|
-
|
|
(0.2)
|
|
Other
consumer
|
|
1.4
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
|
Total
|
|
2.3
|
|
0.3
|
|
0.2
|
|
0.3
|
|
0.1
|
|
Total net loan charge-offs
|
$
|
10.6
|
$
|
6.7
|
$
|
5.8
|
$
|
4.5
|
$
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.10
|
%
|
0.06
|
%
|
0.06
|
%
|
0.05
|
%
|
0.06
|
%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
addition to evaluating People's United Financial Inc. ("People's
United") results of operations in accordance with
|
U.S. generally
accepted accounting principles ("GAAP"), management routinely
supplements its evaluation with an analysis
|
of certain non-GAAP
financial measures, such as the efficiency and tangible common
equity ratios, tangible book value per
|
common share and
operating earnings metrics. Management believes these non-GAAP
financial measures provide
|
|
information useful to
investors in understanding People's United's underlying operating
performance and trends, and
|
facilitates
comparisons with the performance of other financial institutions.
Further, the efficiency ratio and operating
|
earnings metrics are
used by management in its assessment of financial performance,
including non-interest expense
|
control, while the
tangible common equity ratio and tangible book value per common
share are used to analyze the
|
|
relative strength of
People's United's capital position.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The efficiency ratio, which represents an approximate measure of
the cost required by People's United to generate a
|
dollar of revenue, is
the ratio of (i) total non-interest expense (excluding
operating lease expense, goodwill impairment
|
charges, amortization
of other acquisition-related intangible assets, losses on real
estate assets and non-recurring
|
|
expenses) (the
numerator) to (ii) net interest income on a fully taxable
equivalent ("FTE") basis plus total non-interest
|
income (including the
FTE adjustment on bank-owned life insurance ("BOLI") income, the
netting of operating lease
|
expense and excluding
gains and losses on sales of assets other than residential mortgage
loans and acquired loans, and
|
non-recurring income)
(the denominator). People's United generally considers an item of
income or expense to be
|
|
non-recurring if it
is not similar to an item of income or expense of a type incurred
within the last two years and is not
|
similar to an item of
income or expense of a type reasonably expected to be incurred
within the following two years.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings exclude
from net income available to common shareholders those items that
management considers
|
to be of such a
non-recurring or infrequent nature that, by excluding such items
(net of income taxes), People's United's
|
results can be
measured and assessed on a more consistent basis from period to
period. Items excluded from operating
|
earnings, which
include, but are not limited to: (i) non-recurring gains/losses;
(ii) merger-related expenses, including
|
acquisition
integration and other costs; (iii) writedowns of banking house
assets and related lease termination costs;
|
(iv)
severance-related costs; and (v) charges related to executive-level
management separation costs, are generally also
|
excluded when
calculating the efficiency ratio. Operating earnings per common
share ("EPS") is derived by determining the
|
per common share
impact of the respective adjustments to arrive at operating
earnings and adding (subtracting) such
|
amounts to (from)
diluted EPS, as reported. Operating return on average assets is
calculated by dividing operating earnings
|
(annualized) by
average total assets. Operating return on average tangible common
equity is calculated by dividing
|
|
operating earnings
(annualized) by average tangible common equity. The operating
common dividend payout ratio is
|
calculated by
dividing common dividends paid by operating earnings for the
respective period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The tangible common equity ratio is the ratio of (i) tangible
common equity (total stockholders' equity less preferred
|
stock, goodwill and
other acquisition-related intangible assets) (the numerator) to
(ii) tangible assets (total assets less
|
goodwill and other
acquisition-related intangible assets) (the denominator). Tangible
book value per common share is
|
calculated by
dividing tangible common equity by common shares (total common
shares issued, less common shares
|
classified as
treasury shares and unallocated Employee Stock Ownership Plan
("ESOP") common shares).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
light of diversity in presentation among financial institutions,
the methodologies used by People's United for
|
|
determining the
non-GAAP financial measures discussed above may differ from those
used by other financial
|
|
|
institutions.
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
NON-INTEREST EXPENSE AND EFFICIENCY RATIO
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
Total non-interest
expense
|
|
$
320.1
|
|
$
325.7
|
|
$
281.4
|
|
$
278.4
|
|
$
277.2
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(17.9)
|
|
(22.6)
|
|
(5.0)
|
|
(6.5)
|
|
(15.0)
|
Intangible
asset write-down
|
|
-
|
|
(16.5)
|
|
-
|
|
-
|
|
-
|
Total
|
|
(17.9)
|
|
(39.1)
|
|
(5.0)
|
|
(6.5)
|
|
(15.0)
|
Operating non-interest expense
|
|
302.2
|
|
286.6
|
|
276.4
|
|
271.9
|
|
262.2
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
of other acquisition-related
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(10.7)
|
|
(9.8)
|
|
(8.0)
|
|
(8.0)
|
|
(6.7)
|
Operating
lease expense
|
|
(9.8)
|
|
(9.6)
|
|
(9.9)
|
|
(9.9)
|
|
(9.4)
|
Other
(1)
|
|
(1.9)
|
|
(1.6)
|
|
(1.4)
|
|
(1.4)
|
|
(1.8)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
279.8
|
|
$
265.6
|
|
$
257.1
|
|
$
252.6
|
|
$
244.3
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
403.7
|
|
$
390.3
|
|
$
356.0
|
|
$
355.4
|
|
$
340.0
|
Total non-interest
income
|
|
123.8
|
|
124.2
|
|
106.0
|
|
106.3
|
|
94.6
|
Total revenues
|
|
527.5
|
|
514.5
|
|
462.0
|
|
461.7
|
|
434.6
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(9.8)
|
|
(9.6)
|
|
(9.9)
|
|
(9.9)
|
|
(9.4)
|
BOLI FTE
adjustment
|
|
0.8
|
|
0.7
|
|
0.5
|
|
0.7
|
|
0.6
|
Gain on sale
of branches, net of expenses
|
|
-
|
|
(7.6)
|
|
-
|
|
-
|
|
-
|
Net security
gains
|
|
-
|
|
(0.1)
|
|
-
|
|
(0.1)
|
|
-
|
Other
(2)
|
|
(0.3)
|
|
(3.2)
|
|
0.1
|
|
-
|
|
0.3
|
Total revenues for efficiency ratio
|
|
$
518.2
|
|
$
494.7
|
|
$
452.7
|
|
$
452.4
|
|
$
426.1
|
Efficiency ratio
|
|
54.0%
|
|
53.7%
|
|
56.8%
|
|
55.8%
|
|
57.3%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Items
classified as "other" and deducted from non-interest expense for
purposes of calculating the
|
efficiency ratio
include certain franchise taxes and real estate owned
expenses.
|
|
|
(2) Items
classified as "other" and (deducted from) added to total revenues
for purposes of calculating the
|
efficiency ratio
include, as applicable, asset write-offs and gains/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
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in millions,
except per common share data)
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
Net income available
to common shareholders
|
$
126.9
|
|
$
134.0
|
|
$
131.6
|
|
$
129.7
|
|
$
111.1
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
17.9
|
|
22.6
|
|
5.0
|
|
6.5
|
|
15.0
|
Intangible
asset write-down
|
|
-
|
|
16.5
|
|
-
|
|
-
|
|
-
|
Gain on sale
of branches, net of expenses
|
|
-
|
|
(7.6)
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
17.9
|
|
31.5
|
|
5.0
|
|
6.5
|
|
15.0
|
Tax
effect
|
|
(3.7)
|
|
(6.7)
|
|
(1.1)
|
|
(1.4)
|
|
(3.1)
|
Total adjustments, net of tax
|
|
14.2
|
|
24.8
|
|
3.9
|
|
5.1
|
|
11.9
|
Operating earnings
|
|
$
141.1
|
|
$
158.8
|
|
$
135.5
|
|
$
134.8
|
|
$
123.0
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.30
|
|
$
0.31
|
|
$
0.33
|
|
$
0.33
|
|
$
0.30
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.03
|
|
0.04
|
|
0.01
|
|
0.01
|
|
0.03
|
Intangible
asset write-down
|
|
-
|
|
0.03
|
|
-
|
|
-
|
|
-
|
Gain on sale
of branches, net of expenses
|
|
-
|
|
(0.01)
|
|
-
|
|
-
|
|
-
|
Total adjustments per common share
|
|
0.03
|
|
0.06
|
|
0.01
|
|
0.01
|
|
0.03
|
Operating EPS
|
|
$
0.33
|
|
$
0.37
|
|
$
0.34
|
|
$
0.34
|
|
$
0.33
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 58,604
|
|
$ 56,130
|
|
$ 51,524
|
|
$ 51,088
|
|
$ 47,800
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
0.96%
|
|
1.13%
|
|
1.05%
|
|
1.06%
|
|
1.03%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
Operating
earnings
|
|
$
141.1
|
|
$
158.8
|
|
$
135.5
|
|
$
134.8
|
|
$
123.0
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
7,804
|
|
$
7,654
|
|
$
7,079
|
|
$
6,978
|
|
$
6,562
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
7,560
|
|
7,410
|
|
6,835
|
|
6,734
|
|
6,318
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,269
|
|
3,226
|
|
3,069
|
|
3,043
|
|
2,900
|
Average tangible
common equity
|
|
$
4,291
|
|
$
4,184
|
|
$
3,766
|
|
$
3,691
|
|
$
3,418
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
13.2%
|
|
15.2%
|
|
14.4%
|
|
14.6%
|
|
14.4%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
Common dividends
paid
|
|
$
77.3
|
|
$
69.9
|
|
$
69.9
|
|
$
69.8
|
|
$
65.2
|
Operating
earnings
|
|
$
141.1
|
|
$
158.8
|
|
$
135.5
|
|
$
134.8
|
|
$
123.0
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
54.8%
|
|
44.0%
|
|
51.6%
|
|
51.8%
|
|
53.0%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
Total stockholders'
equity
|
|
$
7,726
|
|
$
7,947
|
|
$
7,131
|
|
$
7,046
|
|
$
6,621
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Common
equity
|
|
7,481
|
|
7,703
|
|
6,887
|
|
6,802
|
|
6,377
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,264
|
|
3,275
|
|
3,065
|
|
3,073
|
|
2,896
|
Tangible common
equity
|
|
$
4,217
|
|
$
4,428
|
|
$
3,822
|
|
$
3,730
|
|
$
3,481
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 60,433
|
|
$ 58,590
|
|
$ 52,072
|
|
$ 51,622
|
|
$ 48,092
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,264
|
|
3,275
|
|
3,065
|
|
3,073
|
|
2,896
|
Tangible
assets
|
|
$ 57,169
|
|
$ 55,315
|
|
$ 49,007
|
|
$ 48,549
|
|
$ 45,196
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.4%
|
|
8.0%
|
|
7.8%
|
|
7.7%
|
|
7.7%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in millions, except
per common share data)
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
Tangible common
equity
|
|
$
4,217
|
|
$
4,428
|
|
$
3,822
|
|
$
3,730
|
|
$
3,481
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
533.26
|
|
532.83
|
|
487.59
|
|
487.35
|
|
467.38
|
Less: Shares
classified as treasury shares
|
|
103.88
|
|
89.17
|
|
89.01
|
|
89.01
|
|
89.01
|
Common shares
oustanding
|
|
429.38
|
|
443.66
|
|
398.58
|
|
398.34
|
|
378.37
|
Less: Unallocated
ESOP shares
|
|
5.87
|
|
5.92
|
|
6.01
|
|
6.10
|
|
6.19
|
Common
shares
|
|
423.51
|
|
437.74
|
|
392.57
|
|
392.24
|
|
372.18
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
9.96
|
|
$
10.12
|
|
$
9.74
|
|
$
9.51
|
|
$
9.35
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-first-quarter-net-income-of-130-4-million-or-0-30-per-common-share-301046359.html
SOURCE People's United Bank