BRIDGEPORT, Conn., Jan. 21, 2021 /PRNewswire/ -- People's
United Financial, Inc. (NASDAQ: PBCT) today reported results for
the fourth quarter and full year 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)
($ in millions,
except per common share data)
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
|
Dec. 31,
2020
|
|
Sep. 30,
2020
|
|
Dec. 31,
2019
|
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
207.7
|
|
$
144.6
|
|
$
137.5
|
|
|
$
572.6
|
|
$
520.4
|
|
Net income
available
|
|
204.2
|
|
141.1
|
|
134.0
|
|
|
558.5
|
|
506.3
|
|
|
to common
shareholders
|
|
|
|
|
|
|
|
|
Per common
share
|
|
0.49
|
|
0.34
|
|
0.31
|
|
|
1.32
|
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings1
|
|
147.7
|
|
144.7
|
|
158.8
|
|
|
534.6
|
|
552.1
|
|
|
Per common
share
|
|
0.35
|
|
0.34
|
|
0.37
|
|
|
1.27
|
|
1.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
382.8
|
|
$
391.4
|
|
$
382.7
|
|
|
$
1,575.8
|
|
$
1,412.3
|
|
|
Net interest
margin
|
|
2.84%
|
|
2.97%
|
|
3.14%
|
|
|
2.99%
|
|
3.14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
178.2
|
|
101.1
|
|
124.2
|
|
|
492.7
|
|
431.1
|
|
Operating
non-interest income1
|
|
102.3
|
|
101.1
|
|
116.6
|
|
|
416.8
|
|
423.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
$
293.4
|
|
$
293.6
|
|
$
325.7
|
|
|
$
1,211.1
|
|
$
1,162.7
|
|
Operating
non-interest expense1
|
288.5
|
|
289.0
|
|
286.6
|
|
|
1,165.2
|
|
1,097.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
55.5%
|
|
53.8%
|
|
53.7%
|
|
|
54.2%
|
|
55.8%
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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|
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Average
balances
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
44,061
|
|
$
44,853
|
|
$
42,006
|
|
|
$
44,382
|
|
$
38,419
|
|
Deposits
|
|
50,674
|
|
49,542
|
|
42,195
|
|
|
48,217
|
|
39,143
|
|
|
|
|
|
|
|
|
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|
|
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Period-end
balances
|
|
|
|
|
|
|
|
|
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Loans
|
|
43,869
|
|
45,231
|
|
43,596
|
|
|
|
|
|
|
Deposits
|
|
52,138
|
|
49,637
|
|
43,590
|
|
|
|
|
|
|
|
|
|
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1See
Non-GAAP Financial Measures and Reconciliations to GAAP.
|
"We are pleased with our performance in 2020, especially in
light of the uncertain economic environment caused by the
pandemic," said Jack Barnes,
Chairman and Chief Executive Officer. "Full year financial and
operating results were strong and reflect the resilience of
People's United, its employees and customers. Pre-provision net
revenue of $827 million, on an
operating basis, increased 12 percent from the prior year,
reflecting the success of recent acquisitions and solid execution
across core operations. Higher revenues and continued emphasis on
controlling costs lowered the efficiency ratio 160 basis points to
54.2 percent, marking the seventh consecutive year of improvement.
Asset quality remained excellent, indicative of the Company's
conservative approach to underwriting, diversified loan portfolio,
and deep customer relationships. We are particularly pleased by the
continued reduction in loan deferrals, which ended the year at
$271 million or 0.6 percent of total
loans, down from $1.6 billion or 3.5
percent of total loans at the close of the third quarter."
Barnes continued, "As consumer preferences evolve to more
digitally-driven experiences, we have continually enhanced our
technology capabilities to deliver value, provide convenience and
create efficiencies. As a result, customers are increasingly
utilizing our online and mobile platforms for their banking needs.
Given these accelerating digital banking trends and shifts in
retail shopping behavior, we announced today the decision not to
renew our existing in-store branch contracts with Stop & Shop
in Connecticut and New York upon expiration in 2022. This
decision enables us to further optimize our branch network, while
providing the same level of personalized service across each of our
channels."
"We concluded the year with a solid financial performance in the
fourth quarter," stated David
Rosato, Senior Executive Vice President and Chief Financial
Officer. "Operating earnings of $147.7
million increased two percent linked-quarter and benefited
from a lower provision, higher fee income and well-controlled
expenses. Net interest margin of 2.84 percent was 13 basis points
lower than the third quarter, primarily due to increased excess
liquidity and lower yields in both the loan and securities
portfolios. These headwinds were partially offset by our continued
discipline managing deposit pricing as costs declined for the sixth
consecutive quarter. The loan-to-deposit ratio at quarter-end was
84 percent as loans decreased nearly $1.4
billion or three percent from September 30, while deposits grew $2.5 billion or five percent. The decline in
period-end loans was primarily driven by $715 million in lower retail balances,
$289 million in forgiven PPP loans,
and a combined $107 million reduction
in our runoff portfolios. Conversely, we continued to achieve
strong growth in our mortgage warehouse and LEAF businesses.
Period-end deposit growth reflected a $1.8
billion increase in non-interest bearing balances, partially
offset by the roll-off of higher cost time deposits."
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|
As of and for
the Three Months Ended
|
|
|
|
Dec. 31,
2020
|
|
Sep. 30,
2020
|
|
Dec. 31,
2019
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
|
0.12%
|
|
0.15%
|
|
0.06%
|
to average total
loans
|
|
|
|
Non-performing
loans
|
|
0.75%
|
|
0.68%
|
|
0.51%
|
as a percentage of total
loans1
|
|
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|
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|
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Returns
|
|
|
|
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|
|
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|
|
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Return on average
assets2
|
|
1.33%
|
|
0.94%
|
|
0.98%
|
Return on average
tangible common equity2
|
|
18.4%
|
|
13.1%
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Capital
Ratios
|
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|
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|
People's United
Financial, Inc.
|
|
|
|
|
|
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Tangible common
equity / tangible assets
|
|
7.5%
|
|
7.5%
|
|
8.0%
|
Tier 1
leverage
|
|
8.4%
|
|
8.2%
|
|
9.1%
|
Common equity tier
1
|
|
10.5%
|
|
9.9%
|
|
10.2%
|
Tier 1
risk-based
|
|
11.0%
|
|
10.5%
|
|
10.7%
|
Total
risk-based
|
|
12.4%
|
|
11.8%
|
|
12.0%
|
|
|
|
|
|
|
|
|
People's United Bank,
N.A.
|
|
|
|
|
|
|
Tier 1
leverage
|
|
|
8.7%
|
|
8.7%
|
|
9.3%
|
Common equity tier
1
|
|
|
11.5%
|
|
11.0%
|
|
10.9%
|
Tier 1
risk-based
|
|
|
11.5%
|
|
11.0%
|
|
10.9%
|
Total
risk-based
|
|
|
12.8%
|
|
12.3%
|
|
12.1%
|
|
|
|
|
|
|
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1Ratios
for periods prior to January 1, 2020 have been restated to reflect
the total loan portfolio (originated & acquired)
|
2See
Non-GAAP Financial Measures and Reconciliation to GAAP
|
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|
The Board of Directors declared a $0.18 per common share quarterly dividend payable
February 15, 2021 to shareholders of
record on February 1, 2021. Based on
the closing stock price on January 20,
2021, the dividend yield on People's United Financial common
stock is 5.0 percent.
The Company is currently in the process of performing its annual
goodwill impairment assessment. Additional time is necessary to
complete the analysis given the complexities brought about by the
macroeconomic effects of the Covid-19 pandemic, particularly the
current and projected low interest rate environment and a decline
in bank stock valuations last fall, including on the date of the
Company's annual assessment (October
1st). Any potential goodwill impairment charge could be
material to reported earnings, but would represent a non-cash
charge and have no effect on the Company's cash balances, liquidity
or tangible equity. In addition, because goodwill and other
intangible assets are not included in the calculation of regulatory
capital, the Company's well-capitalized regulatory capital ratios
would not be affected by this potential non-cash expense. The
analysis will be completed prior to filing the Annual Report on
Form 10-K with the Securities and Exchange Commission.
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
$63 billion in assets. Founded in
1842, People's United Bank offers commercial and retail banking
through a network of more than 400 retail locations in Connecticut, New
York, Massachusetts,
Vermont, New Hampshire and Maine, as well as wealth management solutions.
The company also provides specialized commercial services to
customers nationwide.
4Q 2020 Financial Highlights
Summary
- Net income totaled $207.7
million, or $0.49 per common
share.
-
- Net income available to common shareholders totaled
$204.2 million.
- Operating earnings totaled $147.7
million, or $0.35 per common
share (See Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $382.8
million in 4Q20 compared to $391.4
million in 3Q20.
- Net interest margin decreased 13 basis points from 3Q20 to
2.84% reflecting:
-
- Excess liquidity resulting from deposits at the Federal Reserve
Bank (decrease of nine basis points).
- Lower yields on the loan and securities portfolios (decrease of
nine basis points).
- Lower rates on deposits (increase of five basis points).
- Provision for credit losses on loans totaled $14.7 million.
-
- Allowance for credit losses on loans increased $1.3 million.
- Net loan charge-offs totaled $13.4
million.
- Net loan charge-off ratio of 0.12% in 4Q20.
- Non-interest income totaled $178.2
million in 4Q20 compared to $101.1
million in 3Q20.
-
- Commercial banking lending fees increased $2.8 million.
- Customer interest rate swap income increased $1.0 million.
- Insurance revenue decreased $5.6
million.
- Included in non-interest income in 4Q20 is a $75.9 million net gain on the sale of People's
United Insurance Agency (See Non-GAAP Financial Measures and
Reconciliation to GAAP).
- At December 31, 2020, assets
under discretionary management totaled $9.5
billion.
- Non-interest expense totaled $293.4
million in 4Q20 compared to $293.6
million in 3Q20.
-
- Operating non-interest expense totaled $288.5 million in 4Q20 and $289.0 million in 3Q20 (See Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $0.3 million of merger-related expenses in 3Q20,
increased $0.4 million.
- Occupancy and equipment expense, excluding $0.3 million and $0.9
million of merger-related expenses in 4Q20 and 3Q20,
respectively, increased $2.4
million.
- Professional and outside services expense, excluding
$0.8 million and $1.4 million of merger-related expenses in 4Q20
and 3Q20, respectively, increased $1.4
million.
- Regulatory assessment expense decreased $1.5 million.
- Other non-interest expense includes merger-related expenses of
$3.8 million in 4Q20 and $2.0 million in 3Q20.
- The efficiency ratio was 55.5% for 4Q20 compared to 53.8% for
3Q20 and 53.7% for 4Q19 (See Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 17.9% for 4Q20 and 18.4% for
the full-year of 2020, compared to 20.2% for the full-year of
2019.
-
- The 4Q20 and full-year 2020 effective tax rates reflect a
$7.1 million benefit related to the
revaluation of certain state deferred tax assets.
Commercial Banking
- Commercial loans totaled $33.2
billion at December 31, 2020,
a $647 million decrease from
September 30, 2020.
-
- Paycheck Protection Plan loans totaled $2.3 billion at December
31, 2020, a $289 million
decrease from September 30,
2020.
- The mortgage warehouse portfolio increased $161 million.
- The New York multifamily
portfolio decreased $47 million.
- The equipment financing portfolio decreased $42 million.
- Average commercial loans totaled $33.1
billion in 4Q20, an $86
million decrease from 3Q20.
-
- Paycheck Protection Plan loans averaged $2.5 billion in 4Q20, a $69 million decrease from 3Q20.
- The average mortgage warehouse portfolio increased $455 million.
- The average New York
multifamily portfolio decreased $53
million.
- The average equipment financing portfolio decreased
$9 million.
- Commercial deposits totaled $22.9
billion at December 31, 2020
compared to $21.6 billion at
September 30, 2020.
- The ratio of non-accrual commercial loans to total commercial
loans was 0.74% at December 31, 2020
compared to 0.65% at September 30,
2020.
- Non-performing commercial assets totaled $255.2 million at December
31, 2020 compared to $234.1
million at September 30,
2020.
- For the commercial loan portfolio, the allowance for credit
losses as a percentage of commercial loans was 0.91% at
December 31, 2020 compared to 0.86%
at September 30, 2020.
- The commercial allowance for credit losses represented 123% of
non-accrual commercial loans at December 31,
2020 compared to 132% at September
30, 2020.
Retail Banking
- Residential mortgage loans totaled $8.5
billion at December 31, 2020,
a $577 million decrease from
September 30, 2020.
-
- Average residential mortgage loans totaled $8.8 billion in 4Q20, a $587 million decrease from 3Q20.
- Home equity loans totaled $2.0
billion at December 31, 2020,
a $128 million decrease from
September 30, 2020.
-
- Average home equity loans totaled $2.1
billion in 4Q20, a $110
million decrease from 3Q20.
- Retail deposits totaled $29.2
billion at December 31, 2020
compared to $28.0 billion at
September 30, 2020.
- The ratio of non-accrual residential mortgage loans to
residential mortgage loans was 0.73% at December 31, 2020 compared to 0.69% at
September 30, 2020.
- The ratio of non-accrual home equity loans to home equity loans
was 1.03% at December 31, 2020
compared to 1.04% at September 30,
2020.
- For the retail loan portfolio, the allowance for credit losses
as a percentage of retail loans was 1.14% at December 31, 2020 compared to 1.17% at
September 30, 2020.
- The retail allowance for credit losses represented 146% of
non-accrual retail loans at December 31,
2020 compared to 155% at September
30, 2020.
Conference Call
On January 21, 2021, 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; (11) the outcome of the ongoing
goodwill impairment analysis; and (12) 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
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
(dollars in millions,
except per common share data)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
Earnings
Data:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
390.2
|
$
|
398.7
|
$
|
413.0
|
$
|
403.7
|
$
|
390.3
|
Net interest
income
|
|
382.8
|
|
391.4
|
|
405.6
|
|
396.0
|
|
382.7
|
Provision for
credit losses (1)
|
|
14.7
|
|
26.8
|
|
80.8
|
|
33.5
|
|
7.3
|
Non-interest
income (2)
|
|
178.2
|
|
101.1
|
|
89.6
|
|
123.8
|
|
124.2
|
Non-interest
expense (2)
|
|
293.4
|
|
293.6
|
|
304.0
|
|
320.1
|
|
325.7
|
Income before
income tax expense
|
|
252.9
|
|
172.1
|
|
110.4
|
|
166.2
|
|
173.9
|
Net
income
|
|
207.7
|
|
144.6
|
|
89.9
|
|
130.4
|
|
137.5
|
Net income
available to common shareholders (2)
|
|
204.2
|
|
141.1
|
|
86.4
|
|
126.9
|
|
134.0
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (3)
|
|
2.84
|
%
|
2.97
|
%
|
3.05
|
%
|
3.12
|
%
|
3.14
|
Return on
average assets (2), (3)
|
|
1.33
|
|
0.94
|
|
0.58
|
|
0.89
|
|
0.98
|
Return on
average common equity (3)
|
|
10.7
|
|
7.5
|
|
4.6
|
|
6.7
|
|
7.2
|
Return on
average tangible common equity (2), (3)
|
|
18.4
|
|
13.1
|
|
8.1
|
|
11.8
|
|
12.8
|
Efficiency
ratio (2)
|
|
55.5
|
|
53.8
|
|
53.5
|
|
54.0
|
|
53.7
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.49
|
$
|
0.34
|
$
|
0.21
|
$
|
0.30
|
$
|
0.31
|
Diluted (2)
|
|
0.49
|
|
0.34
|
|
0.21
|
|
0.30
|
|
0.31
|
Dividends paid
per common share
|
|
0.1800
|
|
0.1800
|
|
0.1800
|
|
0.1775
|
|
0.1775
|
Common
dividend payout ratio (2)
|
|
37.1
|
%
|
53.6
|
%
|
87.4
|
%
|
60.9
|
%
|
52.2
|
Book value per
common share
|
$
|
18.40
|
$
|
18.11
|
$
|
17.95
|
$
|
17.87
|
$
|
17.60
|
Tangible book
value per common share (2)
|
|
10.77
|
|
10.37
|
|
10.18
|
|
10.07
|
|
10.12
|
Stock
price:
|
|
|
|
|
|
|
|
|
|
|
High
|
|
13.58
|
|
12.36
|
|
13.99
|
|
17.00
|
|
17.22
|
Low
|
|
9.98
|
|
9.74
|
|
9.37
|
|
10.40
|
|
14.73
|
Close
|
|
12.93
|
|
10.31
|
|
11.57
|
|
11.05
|
|
16.90
|
Common shares
outstanding (in millions) (2)
|
|
424.68
|
|
424.67
|
|
424.59
|
|
424.47
|
|
443.66
|
Weighted
average diluted common shares (in millions)
|
420.39
|
|
420.29
|
|
420.15
|
|
429.77
|
|
424.98
|
|
|
|
|
|
|
|
|
|
|
|
(1) Provision for
credit losses in 2020 reflects the application of the CECL standard
and the impact of COVID-19.
|
(2) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
|
|
(3)
Annualized.
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
As of and for
the
|
|
Twelve Months
Ended
|
|
December
31,
|
|
(dollars in millions,
except per common share data)
|
|
2020
|
|
2019
|
|
|
Earnings
Data:
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
1,605.6
|
$
|
1,441.7
|
|
|
Net interest
income
|
|
1,575.8
|
|
1,412.3
|
|
|
Provision for
credit losses (1)
|
|
155.8
|
|
28.3
|
|
|
Non-interest
income (2)
|
|
492.7
|
|
431.1
|
|
|
Non-interest
expense (2)
|
|
1,211.1
|
|
1,162.5
|
|
|
Income before
income tax expense
|
|
701.6
|
|
652.4
|
|
|
Net
income
|
|
572.6
|
|
520.4
|
|
|
Net income
available to common shareholders (2)
|
|
558.5
|
|
506.3
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
Net interest
margin
|
|
2.99
|
%
|
3.14
|
%
|
|
Return on
average assets (2)
|
|
0.94
|
|
1.01
|
|
|
Return on
average common equity
|
|
7.4
|
|
7.4
|
|
|
Return on
average tangible common equity (2)
|
|
12.9
|
|
13.4
|
|
|
Efficiency
ratio (2)
|
|
54.2
|
|
55.8
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
Basic
|
$
|
1.33
|
$
|
1.28
|
|
|
Diluted (2)
|
|
1.32
|
|
1.27
|
|
|
Dividends paid
per common share
|
|
0.7175
|
|
0.7075
|
|
|
Common
dividend payout ratio (2)
|
|
54.5
|
%
|
54.3
|
%
|
|
Book value per
common share
|
$
|
18.40
|
$
|
17.60
|
|
|
Tangible book
value per common share (2)
|
|
10.77
|
|
10.12
|
|
|
Stock
price:
|
|
|
|
|
|
|
High
|
|
17.00
|
|
18.03
|
|
|
Low
|
|
9.37
|
|
13.81
|
|
|
Close
|
|
12.93
|
|
16.90
|
|
|
Common shares
outstanding (in millions) (2)
|
|
424.68
|
|
443.66
|
|
|
Weighted
average diluted common shares (in millions)
|
|
422.55
|
|
397.15
|
|
|
|
|
|
|
|
|
|
(1) Provision for
credit losses in 2020 reflects the application of the CECL standard
and the impact of COVID-19.
|
(2) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
63,445
|
$
|
60,871
|
$
|
61,510
|
$
|
60,433
|
$
|
58,590
|
|
Loans
|
|
43,444
|
|
45,231
|
|
45,452
|
|
44,284
|
|
43,596
|
|
Securities
|
|
9,191
|
|
8,270
|
|
8,233
|
|
8,552
|
|
7,790
|
|
Short-term investments
|
|
3,766
|
|
439
|
|
987
|
|
744
|
|
317
|
|
Allowance for credit losses on loans (1)
|
|
425
|
|
424
|
|
414
|
|
342
|
|
247
|
|
Goodwill and other acquisition-related intangible assets
|
3,199
|
|
3,244
|
|
3,254
|
|
3,264
|
|
3,275
|
|
Deposits
|
|
52,138
|
|
49,637
|
|
49,934
|
|
44,741
|
|
43,590
|
|
Borrowings
|
|
1,148
|
|
1,237
|
|
1,782
|
|
5,911
|
|
5,155
|
|
Notes and debentures
|
|
1,010
|
|
1,012
|
|
1,015
|
|
1,013
|
|
993
|
|
Stockholders' equity
|
|
7,956
|
|
7,831
|
|
7,763
|
|
7,726
|
|
7,947
|
|
Total risk-weighted assets (2):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
45,056
|
|
45,756
|
|
45,657
|
|
46,408
|
|
45,208
|
|
People's United
Bank, N.A.
|
|
44,996
|
|
45,685
|
|
45,615
|
|
46,397
|
|
45,174
|
|
Non-accrual loans
|
|
329
|
|
306
|
|
296
|
|
240
|
|
224
|
|
Net loan charge-offs
|
|
13.4
|
|
17.3
|
|
8.5
|
|
10.6
|
|
6.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
44,061
|
$
|
44,853
|
$
|
45,153
|
$
|
43,460
|
$
|
42,006
|
|
Securities (3)
|
|
8,390
|
|
7,922
|
|
8,240
|
|
8,022
|
|
7,372
|
|
Short-term investments
|
|
2,582
|
|
842
|
|
774
|
|
289
|
|
294
|
|
Total earning assets
|
|
55,034
|
|
53,617
|
|
54,168
|
|
51,772
|
|
49,673
|
|
Total assets
|
|
62,396
|
|
61,293
|
|
61,841
|
|
58,604
|
|
56,130
|
|
Deposits
|
|
50,674
|
|
49,542
|
|
48,447
|
|
44,163
|
|
42,195
|
|
Borrowings
|
|
1,233
|
|
1,283
|
|
2,911
|
|
4,353
|
|
4,146
|
|
Notes and debentures
|
|
1,011
|
|
1,014
|
|
1,014
|
|
1,000
|
|
974
|
|
Total funding liabilities
|
|
52,918
|
|
51,839
|
|
52,372
|
|
49,515
|
|
47,314
|
|
Stockholders' equity
|
|
7,884
|
|
7,801
|
|
7,757
|
|
7,804
|
|
7,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
0.12
|
%
|
0.15
|
%
|
0.08
|
%
|
0.10
|
%
|
0.06
|
%
|
Non-performing assets to total loans, real estate owned
|
|
|
|
|
|
|
|
|
|
|
and repossessed
assets
|
|
0.78
|
|
0.71
|
|
0.69
|
|
0.59
|
|
0.57
|
|
Allowance for credit losses on loans to (1):
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.97
|
|
0.94
|
|
0.91
|
|
0.77
|
|
0.57
|
|
Non-accrual
loans
|
|
129.1
|
|
138.4
|
|
139.8
|
|
142.2
|
|
110.0
|
|
Average stockholders' equity to average total assets
|
|
12.6
|
|
12.7
|
|
12.5
|
|
13.3
|
|
13.6
|
|
Stockholders' equity to total assets
|
|
12.5
|
|
12.9
|
|
12.6
|
|
12.8
|
|
13.6
|
|
Tangible common equity to tangible assets (4)
|
|
7.5
|
|
7.5
|
|
7.3
|
|
7.4
|
|
8.0
|
|
Total risk-based capital (2):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.4
|
|
11.8
|
|
11.8
|
|
11.3
|
|
12.0
|
|
People's United
Bank, N.A.
|
|
12.8
|
|
12.3
|
|
12.3
|
|
12.0
|
|
12.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Allowance for
credit losses on loans and asset quality ratios for 2020 reflect
the initial adoption and application of the
|
CECL standard.
|
|
|
|
|
|
|
|
|
|
|
|
(2) December 31, 2020
amounts and ratios are preliminary.
|
|
|
|
|
|
|
|
|
|
|
(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 (1)
|
|
|
|
|
|
|
Dec. 31,
|
Sept.
30,
|
June
30,
|
Dec. 31,
|
(in
millions)
|
2020
|
2020
|
2020
|
2019
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
477.3
|
$
616.8
|
$
491.9
|
$
484.2
|
Short-term
investments
|
3,766.0
|
438.6
|
987.4
|
316.8
|
Securities:
|
|
|
|
|
Trading debt
securities, at fair value
|
-
|
-
|
-
|
7.1
|
Equity
securities, at fair value
|
5.3
|
5.6
|
5.8
|
8.2
|
Debt
securities available-for-sale, at fair value
|
4,925.5
|
4,080.7
|
4,080.3
|
3,564.3
|
Debt
securities held-to-maturity, at amortized cost
|
3,993.8
|
3,916.5
|
3,848.6
|
3,869.2
|
Federal Home
Loan Bank and Federal Reserve Bank stock, at cost
|
266.6
|
267.1
|
298.3
|
341.1
|
Total securities
|
9,191.2
|
8,269.9
|
8,233.0
|
7,789.9
|
Loans
held-for-sale
|
26.5
|
21.4
|
12.2
|
511.3
|
Loans:
|
|
|
|
|
Commercial and
industrial (2)
|
14,982.3
|
15,295.0
|
14,593.9
|
11,041.6
|
Commercial
real estate (2)
|
13,336.9
|
13,713.3
|
13,999.5
|
14,762.3
|
Equipment
financing
|
4,930.0
|
4,887.6
|
4,880.1
|
4,910.4
|
Total Commercial Portfolio
|
33,249.2
|
33,895.9
|
33,473.5
|
30,714.3
|
Residential
mortgage
|
8,518.9
|
9,095.6
|
9,623.7
|
10,318.1
|
Home equity
and other consumer
|
2,101.4
|
2,239.1
|
2,354.3
|
2,563.7
|
Total Retail Portfolio
|
10,620.3
|
11,334.7
|
11,978.0
|
12,881.8
|
Total loans
|
43,869.5
|
45,230.6
|
45,451.5
|
43,596.1
|
Less allowance
for credit losses on loans
|
(425.1)
|
(423.8)
|
(414.0)
|
(246.6)
|
Total loans, net
|
43,444.4
|
44,806.8
|
45,037.5
|
43,349.5
|
Goodwill and other
acquisition-related intangible assets
|
3,198.9
|
3,243.5
|
3,253.7
|
3,274.6
|
Bank-owned life
insurance
|
711.6
|
710.5
|
708.1
|
705.0
|
Premises and
equipment, net
|
276.7
|
281.3
|
285.7
|
305.5
|
Other
assets
|
2,352.2
|
2,482.4
|
2,500.2
|
1,853.0
|
Total assets
|
$
63,444.8
|
$
60,871.2
|
$
61,509.7
|
$
58,589.8
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
15,881.7
|
$
14,101.9
|
$
13,656.9
|
$
9,803.7
|
Savings
|
6,029.7
|
5,846.3
|
5,759.4
|
4,987.7
|
Interest-bearing checking and money market
|
24,567.5
|
23,361.8
|
22,943.6
|
19,592.6
|
Time
|
5,658.8
|
6,326.5
|
7,574.4
|
9,205.5
|
Total deposits
|
52,137.7
|
49,636.5
|
49,934.3
|
43,589.5
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
569.7
|
579.8
|
1,289.7
|
3,125.4
|
Customer
repurchase agreements
|
452.9
|
432.5
|
342.1
|
409.1
|
Federal funds
purchased
|
125.0
|
225.0
|
150.0
|
1,620.0
|
Total borrowings
|
1,147.6
|
1,237.3
|
1,781.8
|
5,154.5
|
Notes and
debentures
|
1,009.6
|
1,012.0
|
1,014.5
|
993.1
|
Other
liabilities
|
1,194.1
|
1,153.9
|
1,016.1
|
905.5
|
Total liabilities
|
55,489.0
|
53,039.7
|
53,746.7
|
50,642.6
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
244.1
|
Common
stock
|
5.3
|
5.3
|
5.3
|
5.3
|
Additional paid-in
capital
|
7,663.6
|
7,657.3
|
7,651.2
|
7,639.4
|
Retained
earnings
|
1,716.6
|
1,589.1
|
1,524.6
|
1,512.8
|
Accumulated other
comprehensive loss
|
(89.2)
|
(77.9)
|
(73.9)
|
(166.9)
|
Unallocated common
stock of Employee Stock Ownership Plan, at cost
|
(115.6)
|
(117.4)
|
(119.3)
|
(122.9)
|
Treasury stock, at
cost
|
(1,469.0)
|
(1,469.0)
|
(1,469.0)
|
(1,164.6)
|
Total stockholders' equity
|
7,955.8
|
7,831.5
|
7,763.0
|
7,947.2
|
Total liabilities and stockholders' equity
|
$
63,444.8
|
$
60,871.2
|
$
61,509.7
|
$
58,589.8
|
|
|
|
|
|
(1) The Consolidated
Statement of Condition for December 31, 2020 is preliminary and
does not reflect any estimated goodwill impairment that the Company is in the
process of evaluating.
|
(2) In connection
with the United Bank core system conversion in April 2020,
approximately $400 million of loans secured by owner-occupied commercial properties were
prospectively reclassified, at that time, from commercial real
estate loans to commercial and
industrial loans. Prior period loan balances were not restated to
conform to the current presentation.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(in millions, except
per common share data)
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate (2)
|
$
106.1
|
|
$
110.5
|
|
$
122.4
|
|
$
149.6
|
|
$
147.2
|
|
Commercial and
industrial (2)
|
111.3
|
|
110.7
|
|
112.4
|
|
106.4
|
|
114.9
|
|
Equipment
financing
|
62.1
|
|
65.4
|
|
67.6
|
|
68.2
|
|
66.7
|
|
Residential
mortgage
|
74.9
|
|
82.1
|
|
84.8
|
|
90.4
|
|
88.2
|
|
Home equity
and other consumer
|
18.7
|
|
19.9
|
|
20.1
|
|
28.0
|
|
30.8
|
|
Total interest on loans
|
373.1
|
|
388.6
|
|
407.3
|
|
442.6
|
|
447.8
|
|
Securities
|
47.2
|
|
47.5
|
|
49.8
|
|
51.2
|
|
47.8
|
|
Short-term
investments
|
0.8
|
|
0.4
|
|
0.2
|
|
2.0
|
|
1.0
|
|
Loans
held-for-sale
|
0.4
|
|
0.3
|
|
0.3
|
|
3.3
|
|
0.3
|
|
Total interest and dividend income
|
421.5
|
|
436.8
|
|
457.6
|
|
499.1
|
|
496.9
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
30.1
|
|
36.5
|
|
41.7
|
|
78.9
|
|
86.9
|
|
Borrowings
|
1.3
|
|
1.5
|
|
2.0
|
|
15.4
|
|
18.5
|
|
Notes and
debentures
|
7.3
|
|
7.4
|
|
8.3
|
|
8.8
|
|
8.8
|
|
Total interest expense
|
38.7
|
|
45.4
|
|
52.0
|
|
103.1
|
|
114.2
|
|
Net interest income
|
382.8
|
|
391.4
|
|
405.6
|
|
396.0
|
|
382.7
|
|
Provision for credit
losses on loans (3)
|
14.7
|
|
27.1
|
|
80.8
|
|
33.5
|
|
7.3
|
|
Provision for credit
losses on securities (3)
|
-
|
|
(0.3)
|
|
-
|
|
-
|
|
-
|
|
Net interest income after provision for credit losses
|
368.1
|
|
364.6
|
|
324.8
|
|
362.5
|
|
375.4
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
24.7
|
|
24.5
|
|
20.3
|
|
28.0
|
|
28.9
|
|
Investment
management fees
|
18.9
|
|
18.8
|
|
17.4
|
|
18.1
|
|
19.3
|
|
Commercial
banking lending fees
|
15.5
|
|
12.7
|
|
10.6
|
|
12.1
|
|
12.9
|
|
Operating
lease income
|
12.9
|
|
12.4
|
|
11.8
|
|
12.6
|
|
12.7
|
|
Insurance
revenue
|
4.1
|
|
9.7
|
|
9.0
|
|
10.9
|
|
7.5
|
|
Cash
management fees
|
9.1
|
|
8.8
|
|
8.1
|
|
7.4
|
|
7.1
|
|
Customer
interest rate swap income, net
|
2.2
|
|
1.2
|
|
2.7
|
|
8.8
|
|
8.5
|
|
Gain on sale
of business, net of expenses (4)
|
75.9
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Other
non-interest income (4)
|
14.9
|
|
13.0
|
|
9.7
|
|
25.9
|
|
27.3
|
|
Total non-interest income
|
178.2
|
|
101.1
|
|
89.6
|
|
123.8
|
|
124.2
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
166.6
|
|
166.5
|
|
167.8
|
|
173.9
|
|
171.4
|
|
Occupancy and
equipment
|
50.9
|
|
49.1
|
|
48.0
|
|
51.0
|
|
52.2
|
|
Professional
and outside services
|
24.9
|
|
24.1
|
|
25.7
|
|
38.5
|
|
29.6
|
|
Amortization
of other acquisition-related intangible assets
|
9.7
|
|
10.2
|
|
10.2
|
|
10.7
|
|
9.8
|
|
Operating
lease expense
|
8.5
|
|
9.3
|
|
8.8
|
|
9.8
|
|
9.6
|
|
Regulatory
assessments
|
6.9
|
|
8.4
|
|
8.7
|
|
8.7
|
|
7.3
|
|
Other
non-interest expense
|
25.9
|
|
26.0
|
|
34.8
|
|
27.5
|
|
45.8
|
|
Total non-interest expense (4)
|
293.4
|
|
293.6
|
|
304.0
|
|
320.1
|
|
325.7
|
|
Income before income tax expense
|
252.9
|
|
172.1
|
|
110.4
|
|
166.2
|
|
173.9
|
|
Income tax
expense
|
45.2
|
|
27.5
|
|
20.5
|
|
35.8
|
|
36.4
|
|
Net income
|
207.7
|
|
144.6
|
|
89.9
|
|
130.4
|
|
137.5
|
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
Net income available to common shareholders
|
$
204.2
|
|
$
141.1
|
|
$
86.4
|
|
$
126.9
|
|
$
134.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.49
|
|
$
0.34
|
|
$
0.21
|
|
$
0.30
|
|
$
0.31
|
|
Diluted
|
0.49
|
|
0.34
|
|
0.21
|
|
0.30
|
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Consolidated
Statement of Income for the three months ended December 31, 2020 is
preliminary and does not reflect any estimated goodwill impairment
that the Company is in the process of evaluating.
|
(2) In connection
with the United Bank core system conversion in April 2020,
approximately $400 million of loans secured by owner-occupied commercial properties were
prospectively reclassified, at that time, from commercial real
estate loans to commercial and
industrial loans. Prior period interest income amounts were not
restated to conform to the current presentation.
|
(3) Provision for
credit losses in 2020 reflects the application of the CECL standard
and the impact of COVID-19.
|
|
(4) The gain on sale
of business, net of expenses, is considered non-operating income.
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 $4.9 million, $4.6
million, $18.5 million, $17.9 million and $39.1 million of
non-operating expenses for the three months ended
December 31, 2020, September 30, 2020,
June 30, 2020, March 31, 2020, and December 31, 2019,
respectively. See Non-GAAP Financial Measures and Reconciliation to
GAAP.
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME (1)
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
December
31,
|
(in millions, except
per common share data)
|
2020
|
|
2019
|
Interest and
dividend income:
|
|
|
|
Commercial
real estate
|
$
488.6
|
|
$
556.4
|
Commercial and
industrial
|
440.8
|
|
443.6
|
Equipment
financing
|
263.3
|
|
253.8
|
Residential
mortgage
|
332.2
|
|
329.1
|
Home equity
and other consumer
|
86.7
|
|
106.1
|
Total interest on loans
|
1,611.6
|
|
1,689.0
|
Securities
|
195.7
|
|
186.5
|
Loans
held-for-sale
|
4.3
|
|
0.8
|
Short-term
investments
|
3.4
|
|
4.8
|
Total interest and dividend income
|
1,815.0
|
|
1,881.1
|
Interest
expense:
|
|
|
|
Deposits
|
187.2
|
|
356.9
|
Borrowings
|
20.2
|
|
77.0
|
Notes and
debentures
|
31.8
|
|
34.9
|
Total interest expense
|
239.2
|
|
468.8
|
Net interest income
|
1,575.8
|
|
1,412.3
|
Provision for credit
losses on loans (2)
|
156.1
|
|
28.3
|
Provision for credit
losses on securities (2)
|
(0.3)
|
|
-
|
Net interest income after provision for credit losses
|
1,420.0
|
|
1,384.0
|
Non-interest
income:
|
|
|
|
Bank service
charges
|
97.5
|
|
107.5
|
Investment
management fees
|
73.2
|
|
78.2
|
Commercial
banking lending fees
|
50.9
|
|
42.7
|
Operating
lease income
|
49.7
|
|
50.8
|
Insurance
revenue
|
33.7
|
|
37.0
|
Cash
management fees
|
33.4
|
|
28.4
|
Customer
interest rate swap income, net
|
14.9
|
|
24.0
|
Gain on sale
of business, net of expenses (3)
|
75.9
|
|
-
|
Other
non-interest income (3)
|
63.5
|
|
62.5
|
Total non-interest income
|
492.7
|
|
431.1
|
Non-interest
expense:
|
|
|
|
Compensation
and benefits
|
674.8
|
|
646.2
|
Occupancy and
equipment
|
199.0
|
|
185.9
|
Professional
and outside services
|
113.2
|
|
98.2
|
Amortization
of other acquisition-related intangible assets
|
40.8
|
|
32.5
|
Operating
lease expense
|
36.4
|
|
38.8
|
Regulatory
assessments
|
32.7
|
|
26.1
|
Other
non-interest expense
|
114.2
|
|
135.0
|
Total non-interest expense (3)
|
1,211.1
|
|
1,162.7
|
Income before income tax expense
|
701.6
|
|
652.4
|
Income tax
expense
|
129.0
|
|
132.0
|
Net income
|
572.6
|
|
520.4
|
Preferred stock
dividend
|
14.1
|
|
14.1
|
Net income available to common shareholders
|
$
558.5
|
|
$
506.3
|
|
|
|
|
Earnings per common
share:
|
|
|
|
Basic
|
$
1.33
|
|
$
1.28
|
Diluted
|
1.32
|
|
1.27
|
|
|
|
|
(1) The Consolidated
Statement of Income for the twelve months ended December 31, 2020
is preliminary and
|
does not reflect any
estimated goodwill impairment that the Company is in the process of
evaluating.
|
(2) Provision for
credit losses in 2020 reflects the application of the CECL standard
and the impact of
|
COVID-19.
|
|
|
|
(3) The gain on sale
of business, net of expenses, is considered non-operating income.
Other non-interest
|
income includes $7.6 million
of non-operating income for the twelve months ended December 31,
2019.
|
Total non-interest expense
includes $45.9 million and $65.6 million of non-operating expenses
for the
|
twelve months ended December
31, 2020 and 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 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
|
$
2,582.1
|
$
0.8
|
0.12%
|
|
$
841.5
|
$
0.4
|
0.19%
|
|
$
294.4
|
$
1.0
|
1.39%
|
Securities
(2)
|
8,390.2
|
52.3
|
2.50
|
|
7,922.4
|
52.5
|
2.65
|
|
7,372.2
|
52.6
|
2.85
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
13,574.3
|
106.1
|
3.13
|
|
13,853.1
|
110.5
|
3.19
|
|
13,793.2
|
147.2
|
4.27
|
Commercial and
industrial
|
14,621.8
|
113.6
|
3.11
|
|
14,419.8
|
113.0
|
3.13
|
|
10,805.1
|
117.7
|
4.36
|
Equipment
financing
|
4,867.5
|
62.1
|
5.10
|
|
4,876.4
|
65.4
|
5.37
|
|
4,785.0
|
66.7
|
5.58
|
Residential
mortgage
|
8,821.0
|
75.3
|
3.41
|
|
9,408.0
|
82.4
|
3.51
|
|
10,019.0
|
88.5
|
3.53
|
Home equity
and other consumer
|
2,176.6
|
18.7
|
3.44
|
|
2,296.0
|
19.9
|
3.47
|
|
2,603.8
|
30.8
|
4.72
|
Total loans
|
44,061.2
|
375.8
|
3.41
|
|
44,853.3
|
391.2
|
3.49
|
|
42,006.1
|
450.9
|
4.29
|
Total earning assets
|
55,033.5
|
$ 428.9
|
3.12%
|
|
53,617.2
|
$ 444.1
|
3.31%
|
|
49,672.7
|
$ 504.5
|
4.06%
|
Other
assets
|
7,362.6
|
|
|
|
7,676.2
|
|
|
|
6,457.2
|
|
|
Total assets
|
$
62,396.1
|
|
|
|
$
61,293.4
|
|
|
|
$
56,129.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
14,742.6
|
$
-
|
- %
|
|
$
13,753.8
|
$
-
|
- %
|
|
$
9,593.6
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
29,978.3
|
14.7
|
0.20
|
|
28,970.0
|
16.4
|
0.23
|
|
23,674.3
|
49.7
|
0.84
|
Time
|
5,953.5
|
15.4
|
1.03
|
|
6,817.8
|
20.1
|
1.18
|
|
8,926.8
|
37.2
|
1.67
|
Total deposits
|
50,674.4
|
30.1
|
0.24
|
|
49,541.6
|
36.5
|
0.29
|
|
42,194.7
|
86.9
|
0.82
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
571.8
|
1.1
|
0.77
|
|
640.5
|
1.3
|
0.79
|
|
2,287.7
|
11.4
|
1.99
|
Customer
repurchase agreements
|
447.6
|
0.2
|
0.15
|
|
382.6
|
0.2
|
0.18
|
|
1,489.3
|
6.4
|
1.73
|
Federal funds
purchased
|
213.3
|
-
|
0.09
|
|
260.1
|
-
|
0.08
|
|
369.2
|
0.7
|
0.73
|
Total borrowings
|
1,232.7
|
1.3
|
0.43
|
|
1,283.2
|
1.5
|
0.46
|
|
4,146.2
|
18.5
|
1.78
|
Notes and
debentures
|
1,010.8
|
7.3
|
2.89
|
|
1,014.0
|
7.4
|
2.92
|
|
973.5
|
8.8
|
3.61
|
Total funding liabilities
|
52,917.9
|
$
38.7
|
0.29%
|
|
51,838.8
|
$
45.4
|
0.35%
|
|
47,314.4
|
$ 114.2
|
0.96%
|
Other
liabilities
|
1,594.2
|
|
|
|
1,653.3
|
|
|
|
1,161.3
|
|
|
Total liabilities
|
54,512.1
|
|
|
|
53,492.1
|
|
|
|
48,475.7
|
|
|
Stockholders'
equity
|
7,884.0
|
|
|
|
7,801.3
|
|
|
|
7,654.2
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
62,396.1
|
|
|
|
$
61,293.4
|
|
|
|
$
56,129.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 390.2
|
2.83%
|
|
|
$ 398.7
|
2.96%
|
|
|
$ 390.3
|
3.10%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.84%
|
|
|
|
2.97%
|
|
|
|
3.14%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $7.4 million, $7.3 million and $7.6
million for the three months ended
|
December 31, 2020,
September 30, 2020 and December 31, 2019, respectively.
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2020
|
|
|
|
December 31,
2019
|
|
Twelve months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
1,125.1
|
$
3.4
|
0.31%
|
|
$
232.7
|
$
4.8
|
2.06%
|
Securities
(1)
|
8,143.7
|
215.7
|
2.65
|
|
7,217.5
|
205.2
|
2.84
|
Loans:
|
|
|
|
|
|
|
|
Commercial
real estate
|
14,057.6
|
488.6
|
3.48
|
|
12,480.1
|
556.4
|
4.46
|
Commercial and
industrial
|
13,456.8
|
451.0
|
3.35
|
|
9,874.7
|
454.3
|
4.60
|
Equipment
financing
|
4,898.2
|
263.3
|
5.38
|
|
4,574.9
|
253.8
|
5.55
|
Residential
mortgage
|
9,569.2
|
333.3
|
3.48
|
|
9,314.8
|
329.9
|
3.54
|
Home equity
and other consumer
|
2,400.5
|
89.5
|
3.73
|
|
2,174.0
|
106.1
|
4.88
|
Total loans
|
44,382.3
|
1,625.7
|
3.66
|
|
38,418.5
|
1,700.5
|
4.43
|
Total earning assets
|
53,651.1
|
$ 1,844.8
|
3.44%
|
|
45,868.7
|
$
1,910.5
|
4.17%
|
Other
assets
|
7,387.0
|
|
|
|
5,789.3
|
|
|
Total assets
|
$
61,038.1
|
|
|
|
$
51,658.0
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
12,864.4
|
$
-
|
- %
|
|
$
8,822.9
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
and money market
|
27,831.9
|
92.2
|
0.33
|
|
22,204.1
|
209.3
|
0.94
|
Time
|
7,520.6
|
95.0
|
1.26
|
|
8,115.7
|
147.6
|
1.82
|
Total deposits
|
48,216.9
|
187.2
|
0.39
|
|
39,142.7
|
356.9
|
0.91
|
Borrowings:
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
1,371.2
|
13.7
|
1.00
|
|
2,098.0
|
50.1
|
2.39
|
Federal funds
purchased
|
688.2
|
5.4
|
0.79
|
|
1,127.5
|
24.6
|
2.18
|
Customer
repurchase agreements
|
379.0
|
1.1
|
0.29
|
|
296.6
|
2.2
|
0.75
|
Other
borrowings
|
-
|
-
|
-
|
|
3.3
|
0.1
|
1.87
|
Total borrowings
|
2,438.4
|
20.2
|
0.83
|
|
3,525.4
|
77.0
|
2.18
|
Notes and
debentures
|
1,009.5
|
31.8
|
3.15
|
|
922.1
|
34.9
|
3.78
|
Total funding liabilities
|
51,664.8
|
$
239.2
|
0.46%
|
|
43,590.2
|
$
468.8
|
1.08%
|
Other
liabilities
|
1,561.5
|
|
|
|
996.5
|
|
|
Total liabilities
|
53,226.3
|
|
|
|
44,586.7
|
|
|
Stockholders'
equity
|
7,811.8
|
|
|
|
7,071.3
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
61,038.1
|
|
|
|
$
51,658.0
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (2)
|
|
$ 1,605.6
|
2.98%
|
|
|
$
1,441.7
|
3.09%
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.99%
|
|
|
|
3.14%
|
|
|
|
|
|
|
|
|
(1) Average balances
and yields for securities are based on amortized cost.
|
|
|
(2) The fully taxable
equivalent adjustment was $29.8 million and $29.4 million for the
twelve months
|
ended December 31,
2020 and 2019, respectively.
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a result of
adopting the CECL standard on January 1, 2020, People's United's
prior distinction between the originated loan portfolio and the acquired loan portfolio is no
longer necessary. Accordingly, prior period disclosures have been
revised to conform to the current
period presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
60.4
|
$
|
85.3
|
$
|
73.6
|
$
|
53.5
|
$
|
53.8
|
|
Commercial and
industrial
|
|
76.4
|
|
86.7
|
|
88.8
|
|
55.6
|
|
38.5
|
|
Equipment
financing
|
|
109.3
|
|
49.0
|
|
48.6
|
|
42.5
|
|
47.7
|
|
Total Commercial
|
|
246.1
|
|
221.0
|
|
211.0
|
|
151.6
|
|
140.0
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
62.3
|
|
62.9
|
|
62.6
|
|
66.6
|
|
63.3
|
|
Home
equity
|
|
20.5
|
|
22.1
|
|
22.5
|
|
22.1
|
|
20.8
|
|
Other
consumer
|
|
0.2
|
|
0.2
|
|
0.1
|
|
0.1
|
|
-
|
|
Total Retail
|
|
83.0
|
|
85.2
|
|
85.2
|
|
88.8
|
|
84.1
|
|
Total non-accrual loans (1)
|
|
329.1
|
|
306.2
|
|
296.2
|
|
240.4
|
|
224.1
|
|
Real estate
owned:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
3.6
|
|
3.6
|
|
7.3
|
|
7.3
|
|
7.3
|
|
Residential
|
|
3.2
|
|
1.9
|
|
4.9
|
|
9.5
|
|
11.9
|
|
Total real estate owned
|
|
6.8
|
|
5.5
|
|
12.2
|
|
9.5
|
|
11.9
|
|
Repossessed
assets
|
|
5.7
|
|
9.7
|
|
6.2
|
|
4.6
|
|
4.2
|
|
Total non-performing assets
|
$
|
341.6
|
$
|
321.4
|
$
|
314.6
|
$
|
254.5
|
$
|
240.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans as
a percentage of total loans
|
|
0.75
|
%
|
0.68
|
%
|
0.65
|
%
|
0.54
|
%
|
0.51
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans,
real estate owned and repossessed assets
|
0.78
|
|
0.71
|
|
0.69
|
|
0.59
|
|
0.57
|
|
Tangible
stockholders' equity and allowance
|
|
|
|
|
|
|
|
|
|
|
|
for credit losses
|
|
6.59
|
|
6.41
|
|
6.39
|
|
5.45
|
|
5.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $2.5 million at December 31, 2020,
$2.4 million at September 30, 2020, $2.9 million at June 30, 2020, $1.2 million at March
31, 2020 and $1.3 million at December 31, 2019.
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Dec. 31,
|
|
Sept 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
Allowance for
credit losses on loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
423.8
|
$
|
414.0
|
$
|
341.7
|
$
|
246.6
|
$
|
246.0
|
|
CECL transition
adjustment
|
|
-
|
|
-
|
|
-
|
|
72.2
|
|
N/A
|
|
Balance at beginning
of period, adjusted
|
|
423.8
|
|
414.0
|
|
341.7
|
|
318.8
|
|
246.0
|
|
Charge-offs
|
|
(16.7)
|
|
(19.3)
|
|
(10.3)
|
|
(12.6)
|
|
(8.5)
|
|
Recoveries
|
|
3.3
|
|
2.0
|
|
1.8
|
|
2.0
|
|
1.8
|
|
Net loan charge-offs
|
|
(13.4)
|
|
(17.3)
|
|
(8.5)
|
|
(10.6)
|
|
(6.7)
|
|
Provision for
credit losses on loans
|
|
14.7
|
|
27.1
|
|
80.8
|
|
33.5
|
|
7.3
|
|
Balance at end of period
|
$
|
425.1
|
$
|
423.8
|
$
|
414.0
|
$
|
341.7
|
$
|
246.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.97
|
%
|
0.94
|
%
|
0.91
|
%
|
0.77
|
%
|
0.57
|
%
|
Non-accrual loans
|
|
129.1
|
|
138.4
|
|
139.8
|
|
142.2
|
|
110.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A - not
applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
0.1
|
$
|
4.1
|
$
|
1.8
|
$
|
3.4
|
$
|
(0.1)
|
|
Commercial and
industrial
|
|
6.6
|
|
6.9
|
|
-
|
|
1.0
|
|
2.3
|
|
Equipment
financing
|
|
6.8
|
|
6.2
|
|
5.2
|
|
3.9
|
|
4.2
|
|
Total
|
|
13.5
|
|
17.2
|
|
7.0
|
|
8.3
|
|
6.4
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
(0.3)
|
|
(0.2)
|
|
-
|
|
0.8
|
|
(0.2)
|
|
Home
equity
|
|
-
|
|
-
|
|
0.6
|
|
0.1
|
|
0.3
|
|
Other
consumer
|
|
0.2
|
|
0.3
|
|
0.9
|
|
1.4
|
|
0.2
|
|
Total
|
|
(0.1)
|
|
0.1
|
|
1.5
|
|
2.3
|
|
0.3
|
|
Total net loan charge-offs
|
$
|
13.4
|
$
|
17.3
|
$
|
8.5
|
$
|
10.6
|
$
|
6.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.12
|
%
|
0.15
|
%
|
0.08
|
%
|
0.10
|
%
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net revenue is a useful financial measure as it
enables an assessment of the Company's ability to generate
earnings to cover credit losses through a
credit cycle as well as providing an additional basis for comparing
the Company's results of operation
between periods by isolating the impact of the provision for credit
losses, which can vary significantly between periods.
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Total non-interest
expense
|
|
$
293.4
|
|
$
293.6
|
|
$
304.0
|
|
$
320.1
|
|
$
325.7
|
|
$
1,211.1
|
|
$
1,162.7
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(4.9)
|
|
(4.6)
|
|
(18.5)
|
|
(17.9)
|
|
(22.6)
|
|
(45.9)
|
|
(49.1)
|
Intangible
asset write-down
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(16.5)
|
|
-
|
|
(16.5)
|
Total
|
|
(4.9)
|
|
(4.6)
|
|
(18.5)
|
|
(17.9)
|
|
(39.1)
|
|
(45.9)
|
|
(65.6)
|
Operating non-interest expense
|
|
288.5
|
|
289.0
|
|
285.5
|
|
302.2
|
|
286.6
|
|
1,165.2
|
|
1,097.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of other acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(9.7)
|
|
(10.2)
|
|
(10.2)
|
|
(10.7)
|
|
(9.8)
|
|
(40.8)
|
|
(32.5)
|
Operating
lease expense
|
|
(8.5)
|
|
(9.3)
|
|
(8.8)
|
|
(9.8)
|
|
(9.6)
|
|
(36.4)
|
|
(38.8)
|
Other
(1)
|
|
(1.3)
|
|
(5.1)
|
|
(1.9)
|
|
(1.9)
|
|
(1.6)
|
|
(10.2)
|
|
(6.2)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
269.0
|
|
$
264.4
|
|
$
264.6
|
|
$
279.8
|
|
$
265.6
|
|
$
1,077.8
|
|
$
1,019.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
390.2
|
|
$
398.7
|
|
$
413.0
|
|
$
403.7
|
|
$
390.3
|
|
$
1,605.6
|
|
$
1,441.7
|
Total non-interest
income
|
|
178.2
|
|
101.1
|
|
89.6
|
|
123.8
|
|
124.2
|
|
492.7
|
|
431.1
|
Total revenues
|
|
568.4
|
|
499.8
|
|
502.6
|
|
527.5
|
|
514.5
|
|
2,098.3
|
|
1,872.8
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale
of business, net of expenses
|
(75.9)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(75.9)
|
|
-
|
Operating
lease expense
|
|
(8.5)
|
|
(9.3)
|
|
(8.8)
|
|
(9.8)
|
|
(9.6)
|
|
(36.4)
|
|
(38.8)
|
BOLI FTE
adjustment
|
|
0.9
|
|
0.8
|
|
1.0
|
|
0.8
|
|
0.7
|
|
3.5
|
|
2.5
|
Gain on sale
of branches, net of expenses
|
-
|
|
-
|
|
-
|
|
-
|
|
(7.6)
|
|
-
|
|
(7.6)
|
Net security
gains
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.1)
|
|
-
|
|
(0.2)
|
Other
(2)
|
|
-
|
|
(0.1)
|
|
-
|
|
(0.3)
|
|
(3.2)
|
|
(0.4)
|
|
(2.8)
|
Total revenues for efficiency ratio
|
|
$
484.9
|
|
$
491.2
|
|
$
494.8
|
|
$
518.2
|
|
$
494.7
|
|
$
1,989.1
|
|
$
1,825.9
|
Efficiency ratio
|
|
55.5%
|
|
53.8%
|
|
53.5%
|
|
54.0%
|
|
53.7%
|
|
54.2%
|
|
55.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Items
classified as "other" and deducted from non-interest expense for
purposes of calculating the efficiency ratio
|
include certain
franchise taxes and real estate owned expenses.
|
|
|
|
|
|
|
|
|
(2) Items
classified as "other" and deducted from total revenues for purposes
of calculating the efficiency ratio
|
|
|
include, as
applicable, asset write-offs and gains/losses associated with the
sale of branch locations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRE-PROVISION NET
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net interest
income
|
|
$
382.8
|
|
$
391.4
|
|
$
405.6
|
|
$
396.0
|
|
$
382.7
|
|
$
1,575.8
|
|
$
1,412.3
|
Non-interest
income
|
|
178.2
|
|
101.1
|
|
89.6
|
|
123.8
|
|
124.2
|
|
492.7
|
|
431.1
|
Non-interest
expense
|
|
(293.4)
|
|
(293.6)
|
|
(304.0)
|
|
(320.1)
|
|
(325.7)
|
|
(1,211.1)
|
|
(1,162.7)
|
Pre-provision net revenue
|
|
267.6
|
|
198.9
|
|
191.2
|
|
199.7
|
|
181.2
|
|
857.4
|
|
680.7
|
Non-operating
income
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
|
(7.6)
|
|
(75.9)
|
|
(7.6)
|
Non-operating
expense
|
|
4.9
|
|
4.6
|
|
18.5
|
|
17.9
|
|
39.1
|
|
45.9
|
|
65.6
|
Operating pre-provision net revenue
|
|
$
196.6
|
|
$
203.5
|
|
$
209.7
|
|
$
217.6
|
|
$
212.7
|
|
$
827.4
|
|
$
738.7
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in millions,
except per common share data)
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020 (1)
|
|
2019
|
Net income available
to common shareholders
|
$
204.2
|
|
$
141.1
|
|
$
86.4
|
|
$
126.9
|
|
$
134.0
|
|
$
558.5
|
|
$
506.3
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
4.9
|
|
4.6
|
|
18.5
|
|
17.9
|
|
22.6
|
|
45.9
|
|
49.1
|
Gain on sale
of business, net of expenses
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(75.9)
|
|
-
|
Intangible
asset write-down
|
|
-
|
|
-
|
|
-
|
|
-
|
|
16.5
|
|
-
|
|
16.5
|
Gain on sale
of branches, net of expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7.6)
|
|
-
|
|
(7.6)
|
Total pre-tax adjustments
|
|
(71.0)
|
|
4.6
|
|
18.5
|
|
17.9
|
|
31.5
|
|
(30.0)
|
|
58.0
|
Tax
effect
|
|
14.5
|
|
(1.0)
|
|
(3.9)
|
|
(3.7)
|
|
(6.7)
|
|
6.1
|
|
(12.2)
|
Total adjustments, net of tax
|
|
(56.5)
|
|
3.6
|
|
14.6
|
|
14.2
|
|
24.8
|
|
(23.9)
|
|
45.8
|
Operating earnings
|
|
$
147.7
|
|
$
144.7
|
|
$
101.0
|
|
$
141.1
|
|
$
158.8
|
|
$
534.6
|
|
$
552.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.49
|
|
$
0.34
|
|
$
0.21
|
|
$
0.30
|
|
$
0.31
|
|
$
1.32
|
|
$
1.27
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
-
|
|
-
|
|
0.03
|
|
0.03
|
|
0.04
|
|
0.09
|
|
0.10
|
Gain on sale
of business, net of expenses
|
|
(0.14)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.14)
|
|
-
|
Intangible
asset write-down
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.03
|
|
-
|
|
0.03
|
Gain on sale
of branches, net of expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
Total adjustments per common share
|
|
(0.14)
|
|
-
|
|
0.03
|
|
0.03
|
|
0.06
|
|
(0.05)
|
|
0.12
|
Operating EPS
|
|
$
0.35
|
|
$
0.34
|
|
$
0.24
|
|
$
0.33
|
|
$
0.37
|
|
$
1.27
|
|
$
1.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 62,396
|
|
$ 61,293
|
|
$ 61,841
|
|
$ 58,603
|
|
$ 56,130
|
|
$ 61,038
|
|
$ 51,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
0.95%
|
|
0.94%
|
|
0.65%
|
|
0.96%
|
|
1.13%
|
|
0.88%
|
|
1.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The sum of the
quarterly amounts for certain line items may not equal twelve
months amounts due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
earnings
|
|
$
147.7
|
|
$
144.7
|
|
$
101.0
|
|
$
141.1
|
|
$
158.8
|
|
$
534.6
|
|
$
552.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
7,884
|
|
$
7,801
|
|
$
7,757
|
|
$
7,804
|
|
$
7,654
|
|
$
7,812
|
|
$
7,071
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
7,640
|
|
7,557
|
|
7,513
|
|
7,560
|
|
7,410
|
|
7,568
|
|
6,827
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,213
|
|
3,249
|
|
3,259
|
|
3,269
|
|
3,226
|
|
3,247
|
|
3,060
|
Average tangible
common equity
|
|
$
4,427
|
|
$
4,308
|
|
$
4,254
|
|
$
4,291
|
|
$
4,184
|
|
$
4,321
|
|
$
3,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
13.3%
|
|
13.4%
|
|
9.5%
|
|
13.2%
|
|
15.2%
|
|
12.4%
|
|
14.7%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2020 (1)
|
|
2019
|
Common dividends
paid
|
|
$
75.6
|
|
$
75.7
|
|
$
75.5
|
|
$
77.3
|
|
$
69.9
|
|
$
304.1
|
|
$
274.8
|
Operating
earnings
|
|
$
147.7
|
|
$
144.7
|
|
$
101.0
|
|
$
141.1
|
|
$
158.8
|
|
$
534.6
|
|
$
552.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
51.2%
|
|
52.3%
|
|
74.8%
|
|
54.8%
|
|
44.0%
|
|
56.9%
|
|
49.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The sum of the
quarterly amounts for certain line items may not equal twelve
months amounts due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
|
|
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
|
|
|
Total stockholders'
equity
|
|
$
7,956
|
|
$
7,831
|
|
$
7,763
|
|
$
7,726
|
|
$
7,947
|
|
|
|
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
|
|
|
Common
equity
|
|
7,712
|
|
7,587
|
|
7,519
|
|
7,482
|
|
7,703
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,199
|
|
3,244
|
|
3,254
|
|
3,264
|
|
3,275
|
|
|
|
|
Tangible common
equity
|
|
$
4,513
|
|
$
4,343
|
|
$
4,265
|
|
$
4,218
|
|
$
4,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 63,445
|
|
$ 60,871
|
|
$ 61,510
|
|
$ 60,433
|
|
$ 58,590
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
3,199
|
|
3,244
|
|
3,254
|
|
3,264
|
|
3,275
|
|
|
|
|
Tangible
assets
|
|
$ 60,246
|
|
$ 57,627
|
|
$ 58,256
|
|
$ 57,169
|
|
$ 55,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.5%
|
|
7.5%
|
|
7.3%
|
|
7.4%
|
|
8.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
|
|
|
(in millions, except
per common share data)
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
|
|
|
Tangible common
equity
|
|
$
4,513
|
|
$
4,343
|
|
$
4,265
|
|
$
4,218
|
|
$
4,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
533.68
|
|
533.67
|
|
533.59
|
|
533.47
|
|
532.83
|
|
|
|
|
Less: Shares
classified as treasury shares
|
|
109.00
|
|
109.00
|
|
109.00
|
|
109.00
|
|
89.17
|
|
|
|
|
Common shares
outstanding
|
|
424.68
|
|
424.67
|
|
424.59
|
|
424.47
|
|
443.66
|
|
|
|
|
Less: Unallocated
ESOP shares
|
|
5.57
|
|
5.66
|
|
5.75
|
|
5.84
|
|
5.92
|
|
|
|
|
Common
shares
|
|
419.11
|
|
419.01
|
|
418.84
|
|
418.63
|
|
437.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
10.77
|
|
$
10.36
|
|
$
10.18
|
|
$
10.07
|
|
$
10.12
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-fourth-quarter-net-income-of-207-7-million-or-0-49-per-common-share-301212901.html
SOURCE People's United Financial, Inc.