BRIDGEPORT, Conn., April 22, 2021 /PRNewswire/ -- People's
United Financial, Inc. (NASDAQ: PBCT) today reported results for
the first quarter of 2021. 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,
2021
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Dec. 31,
2020
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Mar. 31,
2020
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Net income
(loss)
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$
144.5
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$
(145.3)
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$
130.4
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Net income (loss)
available
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to common
shareholders
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141.0
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(148.8)
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126.9
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Per common
share
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0.33
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(0.35)
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0.30
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Operating
earnings1
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156.5
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147.7
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141.1
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Per common
share
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0.37
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0.35
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0.33
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Net interest
income
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$
385.9
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$
382.8
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$
396.0
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Net interest
margin
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2.74%
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2.84%
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3.12%
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Non-interest
income
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94.6
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178.2
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123.8
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Operating
non-interest income1
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94.6
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102.3
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123.8
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Non-interest
expense
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$
311.9
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$
646.4
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$
320.1
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Operating
non-interest expense1
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292.3
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288.5
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302.2
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Efficiency
ratio
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56.6%
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55.5%
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54.0%
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Average
balances
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Loans
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$
42,854
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$
44,061
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$
43,460
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Deposits
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52,876
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50,674
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44,163
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Period-end
balances
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Loans
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42,770
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43,869
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44,284
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Deposits
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53,475
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52,138
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44,741
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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"Our first quarter results marked a solid start to the year and
further highlighted the strengths of the franchise," said
Jack Barnes, Chairman and Chief
Executive Officer. "In February, we announced the merger with
M&T, a like-minded partner that has a similar culture, approach
to service, complementary offerings, and minimal geographic
overlap. This transaction will bring together two
high-performing and well-respected institutions to create a leading
U.S. super regional bank. The combined company will provide
customers greater access to branches, expert bankers, innovative
solutions, and enhanced digital capabilities. We are excited about
the opportunities ahead and building upon the legacy forged by
People's United over 178 years. Importantly, as we work towards the
close of the merger, our focus remains steadfast on delivering
value to customers, supporting communities, and caring for
colleagues."
"We are pleased with the Company's financial performance in the
first quarter," stated David Rosato,
Senior Executive Vice President and Chief Financial Officer.
"Operating income of $156.5 million,
increased six percent linked-quarter and generated an operating
return of average tangible common equity of 13.8 percent. These
results included modestly higher net interest income, continued
well-controlled expenses, and a negative provision for credit
losses primarily driven by an improved economic outlook. Net
interest margin of 2.74 percent was 10 basis points lower than the
fourth quarter due to lower yields in the securities portfolio, two
fewer calendars days and increased excess liquidity. These
headwinds were partially offset by a further reduction in deposits
costs for the seventh consecutive quarter, and stable loan yields.
The loan-to-deposit ratio concluded the quarter at 80 percent as
loans decreased $1.1 billion or three
percent from December 31, while
deposits grew $1.3 billion or three
percent. The decline in period-end loans was largely driven by
$586 million in lower retail
balances, and a $431 million
reduction in mortgage warehouse from a record level at year-end.
Conversely, the loan portfolio benefited from a net increase in PPP
balances of $288 million and
continued solid results in LEAF. Deposit growth reflected federal
stimulus payments, PPP funds and strong inflows in our municipal
business."
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As of and for
the Three Months Ended
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Mar. 31,
2021
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Dec. 31,
2020
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Mar. 31,
2020
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Asset
Quality
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Net loan
charge-offs
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0.12%
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0.12%
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0.10%
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to average total
loans
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Non-performing
loans
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0.83%
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0.75%
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0.54%
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as a percentage of
total loans
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Returns
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Return on average
assets1
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0.90%
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(0.93%)
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0.89%
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Return on average
tangible common equity1
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12.5%
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(13.4%)
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11.8%
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Capital
Ratios
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People's United
Financial, Inc.
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Tangible common
equity / tangible assets
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7.4%
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7.5%
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7.4%
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Tier 1
leverage
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8.3%
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8.3%
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8.4%
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Common equity tier
1
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10.9%
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10.5%
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9.5%
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Tier 1
risk-based
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11.4%
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11.0%
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10.0%
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Total
risk-based
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12.8%
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12.4%
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11.3%
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People's United Bank,
N.A.
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Tier 1
leverage
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8.7%
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8.7%
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8.9%
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Common equity tier
1
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12.1%
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11.5%
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10.7%
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Tier 1
risk-based
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12.1%
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11.5%
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10.7%
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Total
risk-based
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13.3%
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12.8%
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12.0%
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1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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The Company's Board of Directors voted to increase the common
stock dividend to an annual rate of $0.73 per share. Based on the closing stock price
on April 21, 2021, the dividend yield
on People's United Financial common stock is 4.1 percent. The
quarterly dividend of $0.1825 per
share is payable May 15, 2021 to
shareholders of record on May 3,
2021.
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
$64 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.
1Q 2021 Financial Highlights
Summary
- Net income totaled $144.5
million, or $0.33 per common
share.
-
- Net income available to common shareholders totaled
$141.0 million.
- Operating earnings totaled $156.5
million, or $0.37 per common
share (See Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $385.9
million in 1Q21 compared to $382.8
million in 4Q20.
-
- Includes $29.6 million associated
with PPP loans in 1Q21 ($24.6 million
in net fees and $5.0 million in net
interest income).
- Net interest margin decreased ten basis points from 4Q20 to
2.74% reflecting:
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- Lower rates on deposits (increase of five basis points).
- Higher yields on the loan portfolio (increase of three basis
points).
- Lower yields on the securities portfolio (decrease of 11 basis
points).
- Two less calendar days in 1Q21 (decrease of four basis
points).
- Excess liquidity resulting from deposits at the Federal Reserve
Bank (decrease of three basis points).
- PPP loans had a ten basis point favorable impact on the net
interest margin in 1Q21.
- Provision for credit losses on loans totaled $(13.6) million.
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- Allowance for credit losses on loans decreased $26.0 million.
- Net loan charge-offs totaled $12.4
million.
- Net loan charge-off ratio of 0.12%.
- Non-interest income totaled $94.6
million in 1Q21 compared to $178.2
million in 4Q20.
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- Operating non-interest income totaled $94.6 million in 1Q21 and $102.3 million in 4Q20 (See Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Investment management fees increased $1.0 million.
- Customer interest rate swap income decreased $2.1 million.
- Commercial banking lending fees decreased $1.9 million.
- Operating lease income decreased $1.6
million.
- Included in non-interest income in 4Q20 is a $75.9 million net gain on the sale of People's
United Insurance Agency, Inc. (See Non-GAAP Financial Measures and
Reconciliation to GAAP).
- At March 31, 2021, assets under
discretionary management totaled $9.8
billion.
- Non-interest expense totaled $311.9
million in 1Q21 compared to $646.4
million in 4Q20.
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- Operating non-interest expense totaled $292.3 million in 1Q21 and $288.5 million in 4Q20 (See Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense increased $6.2 million, primarily reflecting seasonally
higher payroll and benefit-related costs in 1Q21.
- Occupancy and equipment expense, excluding $0.3 million of non-operating expenses in 4Q20,
decreased $1.5 million.
- Professional and outside services expense, excluding
$9.4 million and $0.8 million of non-operating expenses in 1Q21
and 4Q20, respectively, increased $0.1
million.
- Regulatory assessment expense increased $1.2 million.
- Other non-interest expense includes non-operating
expenses totaling $10.1 million in
1Q21 and $3.8 million in 4Q20.
- The efficiency ratio was 56.6% for 1Q21 compared to 55.5% for
4Q20 and 54.0% for 1Q20 (See Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 20.7% for 1Q21 compared to
37.0% for the full-year of 2020.
-
- The full-year 2020 effective income tax rate reflects the
impact of a non-deductible goodwill impairment charge for which no
tax benefit was realized. Excluding non-deductible goodwill
impairment, the effective income tax rate was 18.4% for the
full-year of 2020.
Commercial Banking
- Commercial loans totaled $32.7
billion at March 31, 2021, a
$514 million decrease from
December 31, 2020.
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- PPP loans increased $288 million
($965 million in initial funding less
$677 million in loan
forgiveness).
- The mortgage warehouse portfolio decreased $431 million.
- The New York multifamily
portfolio decreased $39 million.
- The equipment financing portfolio decreased $3 million.
- Average commercial loans totaled $32.5
billion in 1Q21, a $575
million decrease from 4Q20.
-
- PPP loans decreased $5
million.
- The average mortgage warehouse portfolio decreased $59 million.
- The average New York
multifamily portfolio decreased $53
million.
- The average equipment financing portfolio increased
$20 million.
- Commercial deposits totaled $23.3
billion at March 31, 2021
compared to $22.9 billion at
December 31, 2020.
- The ratio of non-accrual commercial loans to total commercial
loans was 0.85% at March 31, 2021
compared to 0.74% at December 31,
2020.
- Non-performing commercial assets totaled $286.1 million at March
31, 2021 compared to $255.2
million at December 31,
2020.
- For the commercial loan portfolio, the allowance for credit
losses as a percentage of commercial loans was 0.77% at
March 31, 2021 compared to 0.91% at
December 31, 2020.
- The commercial allowance for credit losses represented 90% of
non-accrual commercial loans at March 31,
2021 compared to 123% at December 31,
2020.
Retail Banking
- Residential mortgage loans totaled $8.1
billion at March 31, 2021, a
$452 million decrease from
December 31, 2020.
-
- Average residential mortgage loans totaled $8.3 billion in 1Q21, a $493 million decrease from 4Q20.
- Home equity loans totaled $1.9
billion at March 31, 2021, a
$123 million decrease from
December 31, 2020.
-
- Average home equity loans totaled $1.9
billion in 1Q21, a $128
million decrease from 4Q20.
- Retail deposits totaled $30.2
billion at March 31, 2021
compared to $29.2 billion at
December 31, 2020.
- The ratio of non-accrual residential mortgage loans to
residential mortgage loans was 0.71% at March 31, 2021 compared to 0.73% at December 31, 2020.
- The ratio of non-accrual home equity loans to home equity loans
was 1.00% at March 31, 2021 compared
to 1.03% at December 31, 2020.
- For the retail loan portfolio, the allowance for credit losses
as a percentage of retail loans was 1.48% at March 31, 2021 compared to 1.14% at December 31, 2020.
- The retail allowance for credit losses represented 195% of
non-accrual retail loans at March 31,
2021 compared to 146% at December 31,
2020.
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 pending merger with M&T
Bank Corporation; (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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2021
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2020
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2020
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2020
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2020
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Earnings
Data:
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Net interest
income (fully taxable equivalent)
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$
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393.5
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$
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390.2
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$
|
398.7
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$
|
413.0
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$
|
403.7
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Net interest
income
|
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385.9
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382.8
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391.4
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405.6
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396.0
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Provision for
credit losses
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(13.6)
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14.7
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26.8
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80.8
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33.5
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Non-interest
income (1)
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94.6
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178.2
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101.1
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|
89.6
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123.8
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Non-interest
expense (1)
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311.9
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646.4
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293.6
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304.0
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320.1
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Income (loss)
before income tax expense
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182.2
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(100.1)
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172.1
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110.4
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166.2
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Net income
(loss)
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144.5
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(145.3)
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|
144.6
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|
89.9
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|
130.4
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Net income
(loss) available to common shareholders (1)
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141.0
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(148.8)
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141.1
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|
86.4
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|
126.9
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Selected
Statistical Data:
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Net interest
margin (2)
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2.74
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%
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2.84
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%
|
2.97
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%
|
3.05
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%
|
3.12
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%
|
Return on
average assets (1), (2)
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0.90
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(0.93)
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0.94
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0.58
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0.89
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Return on
average common equity (2)
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7.7
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(7.8)
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7.5
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4.6
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6.7
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Return on
average tangible common equity (1), (2)
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12.5
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(13.4)
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13.1
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8.1
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|
11.8
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Efficiency
ratio (1)
|
|
56.6
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|
55.5
|
|
53.8
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53.5
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54.0
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Common Share
Data:
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Earnings per
common share:
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Basic
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$
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0.34
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$
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(0.36)
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$
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0.34
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$
|
0.21
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$
|
0.30
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Diluted (1)
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0.33
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(0.35)
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0.34
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0.21
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0.30
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Dividends paid
per common share
|
|
0.1800
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|
0.1800
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0.1800
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0.1800
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0.1775
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Common
dividend payout ratio (1)
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53.7
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%
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(50.8)
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%
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53.6
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%
|
87.4
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%
|
60.9
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%
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Book value per
common share
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$
|
17.42
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$
|
17.56
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$
|
18.11
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$
|
17.95
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$
|
17.87
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Tangible book
value per common share (1)
|
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10.70
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|
10.77
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|
10.37
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|
10.18
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|
10.07
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Stock
price:
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High
|
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19.40
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|
13.58
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|
12.36
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|
13.99
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17.00
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Low
|
|
12.66
|
|
9.98
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|
9.74
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|
9.37
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|
10.40
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Close
|
|
17.90
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|
12.93
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|
10.31
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|
11.57
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|
11.05
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Common shares
outstanding (in millions) (1)
|
|
427.22
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|
424.68
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424.67
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|
424.59
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|
424.47
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Weighted
average diluted common shares (in millions)
|
|
422.58
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|
420.39
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|
420.29
|
|
420.15
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|
429.77
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(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
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(2)
Annualized.
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People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
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|
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|
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As of and for the
Three Months Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
64,173
|
$
|
63,092
|
$
|
60,871
|
$
|
61,510
|
$
|
60,433
|
|
Loans
|
|
42,770
|
|
43,870
|
|
45,231
|
|
45,452
|
|
44,284
|
|
Securities
|
|
10,445
|
|
9,191
|
|
8,270
|
|
8,233
|
|
8,552
|
|
Short-term investments
|
|
4,992
|
|
3,766
|
|
439
|
|
987
|
|
744
|
|
Allowance for credit losses on loans
|
|
399
|
|
425
|
|
424
|
|
414
|
|
342
|
|
Goodwill and other acquisition-related intangible assets
|
|
2,835
|
|
2,846
|
|
3,244
|
|
3,254
|
|
3,264
|
|
Deposits
|
|
53,475
|
|
52,138
|
|
49,637
|
|
49,934
|
|
44,741
|
|
Borrowings
|
|
1,156
|
|
1,148
|
|
1,237
|
|
1,782
|
|
5,911
|
|
Notes and debentures
|
|
1,003
|
|
1,010
|
|
1,012
|
|
1,015
|
|
1,013
|
|
Stockholders' equity
|
|
7,592
|
|
7,603
|
|
7,831
|
|
7,763
|
|
7,726
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
44,302
|
|
45,075
|
|
45,756
|
|
45,657
|
|
46,408
|
|
People's United
Bank, N.A.
|
|
44,256
|
|
45,016
|
|
45,685
|
|
45,615
|
|
46,397
|
|
Non-accrual loans
|
|
353
|
|
329
|
|
306
|
|
296
|
|
240
|
|
Net loan charge-offs
|
|
12.4
|
|
13.4
|
|
17.3
|
|
8.5
|
|
10.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
42,854
|
$
|
44,061
|
$
|
44,853
|
$
|
45,153
|
$
|
43,460
|
|
Securities (2)
|
|
9,561
|
|
8,390
|
|
7,922
|
|
8,240
|
|
8,022
|
|
Short-term investments
|
|
5,000
|
|
2,582
|
|
842
|
|
774
|
|
290
|
|
Total earning assets
|
|
57,415
|
|
55,034
|
|
53,617
|
|
54,168
|
|
51,772
|
|
Total assets
|
|
64,057
|
|
62,396
|
|
61,293
|
|
61,841
|
|
58,604
|
|
Deposits
|
|
52,876
|
|
50,674
|
|
49,542
|
|
48,447
|
|
44,163
|
|
Borrowings
|
|
1,143
|
|
1,233
|
|
1,283
|
|
2,911
|
|
4,353
|
|
Notes and debentures
|
|
1,008
|
|
1,011
|
|
1,014
|
|
1,014
|
|
1,000
|
|
Total funding liabilities
|
|
55,027
|
|
52,918
|
|
51,839
|
|
52,372
|
|
49,515
|
|
Stockholders' equity
|
|
7,606
|
|
7,884
|
|
7,801
|
|
7,757
|
|
7,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
|
0.12
|
%
|
0.12
|
%
|
0.15
|
%
|
0.08
|
%
|
0.10
|
%
|
Non-performing assets to total loans, real estate owned
|
|
|
|
|
|
|
|
|
|
|
|
and repossessed
assets
|
|
0.85
|
|
0.78
|
|
0.71
|
|
0.69
|
|
0.59
|
|
Allowance for credit losses on loans to:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.93
|
|
0.97
|
|
0.94
|
|
0.91
|
|
0.77
|
|
Non-accrual
loans
|
|
113.0
|
|
129.1
|
|
138.4
|
|
139.8
|
|
142.2
|
|
Average stockholders' equity to average total assets
|
|
11.9
|
|
12.6
|
|
12.7
|
|
12.5
|
|
13.3
|
|
Stockholders' equity to total assets
|
|
11.8
|
|
12.1
|
|
12.9
|
|
12.6
|
|
12.8
|
|
Tangible common equity to tangible assets (3)
|
|
7.4
|
|
7.5
|
|
7.5
|
|
7.3
|
|
7.4
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
12.8
|
|
12.4
|
|
11.8
|
|
11.8
|
|
11.3
|
|
People's United
Bank, N.A.
|
|
13.3
|
|
12.8
|
|
12.3
|
|
12.3
|
|
12.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) March 31, 2021
amounts and ratios are preliminary.
|
|
|
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|
|
|
|
|
|
(2) Average balances
for securities are based on amortized cost.
|
|
|
|
|
|
|
|
|
|
(3) 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)
|
2021
|
2020
|
2020
|
Assets
|
|
|
|
Cash and due from
banks
|
$
464.2
|
$
477.3
|
$
507.6
|
Short-term
investments
|
4,992.1
|
3,766.0
|
744.3
|
Securities:
|
|
|
|
Debt
securities available-for-sale, at fair value
|
6,160.6
|
4,925.5
|
4,276.6
|
Debt
securities held-to-maturity, at amortized cost
|
4,016.8
|
3,993.8
|
3,861.5
|
Federal
Reserve Bank and Federal Home Loan Bank stock, at cost
|
266.2
|
266.6
|
407.2
|
Equity
securities, at fair value
|
1.5
|
5.3
|
6.2
|
Total securities
|
10,445.1
|
9,191.2
|
8,551.5
|
Loans
held-for-sale
|
10.1
|
26.5
|
19.2
|
Loans:
|
|
|
|
Commercial and
industrial (1)
|
14,288.2
|
14,982.3
|
12,045.7
|
Commercial
real estate (1)
|
13,520.1
|
13,336.9
|
14,651.6
|
Equipment
financing
|
4,927.2
|
4,930.0
|
5,012.7
|
Total Commercial Portfolio
|
32,735.5
|
33,249.2
|
31,710.0
|
Residential
mortgage
|
8,067.2
|
8,518.9
|
10,081.9
|
Home equity
and other consumer
|
1,967.0
|
2,101.4
|
2,492.1
|
Total Retail Portfolio
|
10,034.2
|
10,620.3
|
12,574.0
|
Total loans
|
42,769.7
|
43,869.5
|
44,284.0
|
Less allowance
for credit losses on loans
|
(399.1)
|
(425.1)
|
(341.7)
|
Total loans, net
|
42,370.6
|
43,444.4
|
43,942.3
|
Goodwill and other
acquisition-related intangible assets
|
2,834.6
|
2,845.9
|
3,264.0
|
Bank-owned life
insurance
|
713.1
|
711.6
|
707.6
|
Premises and
equipment, net
|
269.5
|
276.7
|
300.8
|
Other
assets
|
2,073.2
|
2,352.2
|
2,396.0
|
Total assets
|
$
64,172.5
|
$
63,091.8
|
$
60,433.3
|
|
|
|
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
16,266.5
|
$
15,881.7
|
$
10,526.0
|
Savings
|
6,517.7
|
6,029.7
|
5,136.0
|
Interest-bearing checking and money market
|
25,782.8
|
24,567.5
|
20,238.9
|
Time
|
4,908.3
|
5,658.8
|
8,840.2
|
Total deposits
|
53,475.3
|
52,137.7
|
44,741.1
|
Borrowings:
|
|
|
|
Federal Home
Loan Bank advances
|
569.7
|
569.7
|
4,489.7
|
Customer
repurchase agreements
|
436.2
|
452.9
|
301.1
|
Federal funds
purchased
|
150.0
|
125.0
|
1,120.0
|
Total borrowings
|
1,155.9
|
1,147.6
|
5,910.8
|
Notes and
debentures
|
1,003.3
|
1,009.6
|
1,012.6
|
Other
liabilities
|
945.8
|
1,194.1
|
1,043.3
|
Total liabilities
|
56,580.3
|
55,489.0
|
52,707.8
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
Common
stock
|
5.4
|
5.3
|
5.3
|
Additional paid-in
capital
|
7,693.9
|
7,663.6
|
7,644.4
|
Retained
earnings
|
1,426.9
|
1,363.6
|
1,514.5
|
Unallocated common
stock of ESOP, at cost
|
(113.8)
|
(115.6)
|
(121.1)
|
Accumulated other
comprehensive loss
|
(195.3)
|
(89.2)
|
(92.7)
|
Treasury stock, at
cost
|
(1,469.0)
|
(1,469.0)
|
(1,469.0)
|
Total stockholders' equity
|
7,592.2
|
7,602.8
|
7,725.5
|
Total liabilities and stockholders' equity
|
$
64,172.5
|
$
63,091.8
|
$
60,433.3
|
|
|
|
|
(1) In the first
quarter of 2021, the Company completed a portfolio review to ensure
consistent classification of certain
|
commercial loans across the
Company's franchise and conformity to industry practice for such
loans. As a result,
|
approximately $350 million
of loans secured by non-owner-occupied commercial properties were
prospectively
|
reclassified, in March 2021,
from commercial and industrial loans to commercial real estate
loans. Prior period
|
balances were not restated
to conform to the current presentation.
|
|
|
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)
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
116.1
|
|
$
111.3
|
|
$
110.7
|
|
$
112.4
|
|
$
106.4
|
Commercial
real estate
|
98.8
|
|
106.1
|
|
110.5
|
|
122.4
|
|
149.6
|
Equipment
financing
|
62.8
|
|
62.1
|
|
65.4
|
|
67.6
|
|
68.2
|
Residential
mortgage
|
69.9
|
|
74.9
|
|
82.1
|
|
84.8
|
|
90.4
|
Home equity
and other consumer
|
16.5
|
|
18.7
|
|
19.9
|
|
20.1
|
|
28.0
|
Total interest on loans
|
364.1
|
|
373.1
|
|
388.6
|
|
407.3
|
|
442.6
|
Securities
|
51.4
|
|
47.2
|
|
47.5
|
|
49.8
|
|
51.2
|
Short-term
investments
|
1.2
|
|
0.8
|
|
0.4
|
|
0.2
|
|
2.0
|
Loans
held-for-sale
|
0.3
|
|
0.4
|
|
0.3
|
|
0.3
|
|
3.3
|
Total interest and dividend income
|
417.0
|
|
421.5
|
|
436.8
|
|
457.6
|
|
499.1
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
22.7
|
|
30.1
|
|
36.5
|
|
41.7
|
|
78.9
|
Borrowings
|
1.2
|
|
1.3
|
|
1.5
|
|
2.0
|
|
15.4
|
Notes and
debentures
|
7.2
|
|
7.3
|
|
7.4
|
|
8.3
|
|
8.8
|
Total interest expense
|
31.1
|
|
38.7
|
|
45.4
|
|
52.0
|
|
103.1
|
Net interest income
|
385.9
|
|
382.8
|
|
391.4
|
|
405.6
|
|
396.0
|
Provision for credit
losses on loans
|
(13.6)
|
|
14.7
|
|
27.1
|
|
80.8
|
|
33.5
|
Provision for credit
losses on securities
|
-
|
|
-
|
|
(0.3)
|
|
-
|
|
-
|
Net interest income after provision for credit losses
|
399.5
|
|
368.1
|
|
364.6
|
|
324.8
|
|
362.5
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
23.5
|
|
24.7
|
|
24.5
|
|
20.3
|
|
28.0
|
Investment
management fees
|
19.9
|
|
18.9
|
|
18.8
|
|
17.4
|
|
18.1
|
Commercial
banking lending fees
|
13.6
|
|
15.5
|
|
12.7
|
|
10.6
|
|
12.1
|
Operating
lease income
|
11.3
|
|
12.9
|
|
12.4
|
|
11.8
|
|
12.6
|
Cash
management fees
|
9.2
|
|
9.1
|
|
8.8
|
|
8.1
|
|
7.4
|
Customer
interest rate swap income, net
|
0.1
|
|
2.2
|
|
1.2
|
|
2.7
|
|
8.8
|
Gain on sale
of business, net of expenses (1)
|
-
|
|
75.9
|
|
-
|
|
-
|
|
-
|
Other
non-interest income
|
17.0
|
|
19.0
|
|
22.7
|
|
18.7
|
|
36.8
|
Total non-interest income
|
94.6
|
|
178.2
|
|
101.1
|
|
89.6
|
|
123.8
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
172.8
|
|
166.6
|
|
166.5
|
|
167.8
|
|
173.9
|
Occupancy and
equipment
|
49.1
|
|
50.9
|
|
49.1
|
|
48.0
|
|
51.0
|
Professional
and outside services
|
33.6
|
|
24.9
|
|
24.1
|
|
25.7
|
|
38.5
|
Amortization
of other acquisition-related intangible assets
|
11.0
|
|
9.7
|
|
10.2
|
|
10.2
|
|
10.7
|
Regulatory
assessments
|
8.1
|
|
6.9
|
|
8.4
|
|
8.7
|
|
8.7
|
Operating
lease expense
|
7.8
|
|
8.5
|
|
9.3
|
|
8.8
|
|
9.8
|
Goodwill
impairment
|
-
|
|
353.0
|
|
-
|
|
-
|
|
-
|
Other
non-interest expense
|
29.5
|
|
25.9
|
|
26.0
|
|
34.8
|
|
27.5
|
Total non-interest expense (1)
|
311.9
|
|
646.4
|
|
293.6
|
|
304.0
|
|
320.1
|
Income (loss) before income tax expense
|
182.2
|
|
(100.1)
|
|
172.1
|
|
110.4
|
|
166.2
|
Income tax
expense
|
37.7
|
|
45.2
|
|
27.5
|
|
20.5
|
|
35.8
|
Net income (loss)
|
144.5
|
|
(145.3)
|
|
144.6
|
|
89.9
|
|
130.4
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
Net income (loss) available to common shareholders
|
$
141.0
|
|
$ (148.8)
|
|
$
141.1
|
|
$
86.4
|
|
$
126.9
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.34
|
|
$
(0.36)
|
|
$
0.34
|
|
$
0.21
|
|
$
0.30
|
Diluted
|
0.33
|
|
(0.35)
|
|
0.34
|
|
0.21
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
(1) The gain on sale
of business, net of expenses, is considered non-operating income.
Total non-interest expense includes
|
$19.6 million,$357.9 million, $4.6 million, $18.5 million and $17.9
million of non-operating expenses for the three months
ended
|
March 31, 2021, December 31,
2020, September 30, 2020, June 30, 2020 and March 31, 2020,
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,
2021
|
|
December 31,
2020
|
|
March 31,
2020
|
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
|
$
5,000.0
|
$
1.2
|
0.10%
|
|
$
2,582.1
|
$
0.8
|
0.12%
|
|
$
289.8
|
$
2.0
|
2.70%
|
Securities
(2)
|
9,560.6
|
56.7
|
2.37
|
|
8,390.2
|
52.3
|
2.50
|
|
8,021.8
|
56.0
|
2.80
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
13,281.3
|
98.8
|
2.98
|
|
13,574.3
|
106.1
|
3.13
|
|
14,715.3
|
149.6
|
4.07
|
Commercial and
industrial
|
14,319.6
|
118.4
|
3.31
|
|
14,621.8
|
113.6
|
3.11
|
|
10,866.6
|
109.8
|
4.04
|
Equipment
financing
|
4,887.7
|
62.8
|
5.13
|
|
4,867.5
|
62.1
|
5.10
|
|
4,915.6
|
68.2
|
5.55
|
Residential
mortgage
|
8,328.3
|
70.2
|
3.37
|
|
8,821.0
|
75.3
|
3.41
|
|
10,236.3
|
90.5
|
3.54
|
Home equity
and other consumer
|
2,037.1
|
16.5
|
3.23
|
|
2,176.6
|
18.7
|
3.44
|
|
2,726.1
|
30.7
|
4.51
|
Total loans
|
42,854.0
|
366.7
|
3.42
|
|
44,061.2
|
375.8
|
3.41
|
|
43,459.9
|
448.8
|
4.13
|
Total earning assets
|
57,414.6
|
$ 424.6
|
2.96%
|
|
55,033.5
|
$ 428.9
|
3.12%
|
|
51,771.5
|
$ 506.8
|
3.92%
|
Other
assets
|
6,642.1
|
|
|
|
7,362.6
|
|
|
|
6,832.2
|
|
|
Total assets
|
$
64,056.7
|
|
|
|
$
62,396.1
|
|
|
|
$
58,603.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
15,820.0
|
$
-
|
- %
|
|
$
14,742.6
|
$
-
|
- %
|
|
$
10,077.8
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
31,820.1
|
12.8
|
0.16
|
|
29,978.3
|
14.7
|
0.20
|
|
24,940.7
|
44.1
|
0.71
|
Time
|
5,236.4
|
9.9
|
0.75
|
|
5,953.5
|
15.4
|
1.03
|
|
9,144.6
|
34.8
|
1.52
|
Total deposits
|
52,876.5
|
22.7
|
0.17
|
|
50,674.4
|
30.1
|
0.24
|
|
44,163.1
|
78.9
|
0.71
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
569.7
|
1.0
|
0.72
|
|
571.8
|
1.1
|
0.77
|
|
2,430.6
|
9.8
|
1.61
|
Customer
repurchase agreements
|
422.8
|
0.2
|
0.13
|
|
447.6
|
0.2
|
0.15
|
|
328.0
|
0.5
|
0.67
|
Federal funds
purchased
|
150.6
|
-
|
0.09
|
|
213.3
|
-
|
0.09
|
|
1,593.9
|
5.1
|
1.28
|
Total borrowings
|
1,143.1
|
1.2
|
0.42
|
|
1,232.7
|
1.3
|
0.43
|
|
4,352.5
|
15.4
|
1.42
|
Notes and
debentures
|
1,007.8
|
7.2
|
2.87
|
|
1,010.8
|
7.3
|
2.89
|
|
999.5
|
8.8
|
3.51
|
Total funding liabilities
|
55,027.4
|
$
31.1
|
0.23%
|
|
52,917.9
|
$
38.7
|
0.29%
|
|
49,515.1
|
$ 103.1
|
0.83%
|
Other
liabilities
|
1,423.4
|
|
|
|
1,594.2
|
|
|
|
1,284.3
|
|
|
Total liabilities
|
56,450.8
|
|
|
|
54,512.1
|
|
|
|
50,799.4
|
|
|
Stockholders'
equity
|
7,605.9
|
|
|
|
7,884.0
|
|
|
|
7,804.3
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
64,056.7
|
|
|
|
$
62,396.1
|
|
|
|
$
58,603.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 393.5
|
2.73%
|
|
|
$ 390.2
|
2.83%
|
|
|
$ 403.7
|
3.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.74%
|
|
|
|
2.84%
|
|
|
|
3.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $7.6 million, $7.4 million and $7.7
million for the three months ended
|
|
March 31, 2021,
December 31, 2020 and March 31, 2020, respectively.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
90.2
|
$
|
60.4
|
$
|
85.3
|
$
|
73.6
|
$
|
53.5
|
|
Commercial and
industrial
|
|
69.2
|
|
76.4
|
|
86.7
|
|
88.8
|
|
55.6
|
|
Equipment
financing
|
|
118.1
|
|
109.3
|
|
49.0
|
|
48.6
|
|
42.5
|
|
Total Commercial
|
|
277.5
|
|
246.1
|
|
221.0
|
|
211.0
|
|
151.6
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
56.9
|
|
62.3
|
|
62.9
|
|
62.6
|
|
66.6
|
|
Home
equity
|
|
18.7
|
|
20.5
|
|
22.1
|
|
22.5
|
|
22.1
|
|
Other
consumer
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.1
|
|
0.1
|
|
Total Retail
|
|
75.8
|
|
83.0
|
|
85.2
|
|
85.2
|
|
88.8
|
|
Total non-accrual loans (1)
|
|
353.3
|
|
329.1
|
|
306.2
|
|
296.2
|
|
240.4
|
|
Real estate
owned:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
3.5
|
|
3.6
|
|
3.6
|
|
7.3
|
|
7.3
|
|
Residential
|
|
1.5
|
|
3.2
|
|
1.9
|
|
4.9
|
|
9.5
|
|
Total real estate owned
|
|
5.0
|
|
6.8
|
|
5.5
|
|
12.2
|
|
9.5
|
|
Repossessed
assets
|
|
5.4
|
|
5.7
|
|
9.7
|
|
6.2
|
|
4.6
|
|
Total non-performing assets
|
$
|
363.7
|
$
|
341.6
|
$
|
321.4
|
$
|
314.6
|
$
|
254.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans as
a percentage of total loans
|
|
0.83
|
%
|
0.75
|
%
|
0.68
|
%
|
0.65
|
%
|
0.54
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans,
real estate owned and repossessed assets
|
|
0.85
|
|
0.78
|
|
0.71
|
|
0.69
|
|
0.59
|
|
Tangible
stockholders' equity and allowance
|
|
|
|
|
|
|
|
|
|
|
|
for credit losses
|
|
7.05
|
|
6.59
|
|
6.41
|
|
6.39
|
|
5.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $2.5 million at March 31, 2021, $2.5
million at December 31, 2020,
|
|
$2.4 million at
September 30, 2020, $2.9 million at June 30, 2020 and $1.2 million
at March 31, 2020.
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Allowance for credit
losses on loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
425.1
|
$
|
423.8
|
$
|
414.0
|
$
|
341.7
|
$
|
246.6
|
|
CECL transition
adjustment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
72.2
|
|
Balance at beginning
of period, adjusted
|
|
425.1
|
|
423.8
|
|
414.0
|
|
341.7
|
|
318.8
|
|
Charge-offs
|
|
(17.8)
|
|
(16.7)
|
|
(19.3)
|
|
(10.3)
|
|
(12.6)
|
|
Recoveries
|
|
5.4
|
|
3.3
|
|
2.0
|
|
1.8
|
|
2.0
|
|
Net loan charge-offs
|
|
(12.4)
|
|
(13.4)
|
|
(17.3)
|
|
(8.5)
|
|
(10.6)
|
|
Provision for
credit losses on loans
|
|
(13.6)
|
|
14.7
|
|
27.1
|
|
80.8
|
|
33.5
|
|
Balance at end of period
|
$
|
399.1
|
$
|
425.1
|
$
|
423.8
|
$
|
414.0
|
$
|
341.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.93
|
%
|
0.97
|
%
|
0.94
|
%
|
0.91
|
%
|
0.77
|
%
|
Non-accrual loans
|
|
113.0
|
|
129.1
|
|
138.4
|
|
139.8
|
|
142.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
5.8
|
$
|
0.1
|
$
|
4.1
|
$
|
1.8
|
$
|
3.4
|
|
Commercial and
industrial
|
|
(0.5)
|
|
6.6
|
|
6.9
|
|
-
|
|
1.0
|
|
Equipment
financing
|
|
7.2
|
|
6.8
|
|
6.2
|
|
5.2
|
|
3.9
|
|
Total
|
|
12.5
|
|
13.5
|
|
17.2
|
|
7.0
|
|
8.3
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
(0.3)
|
|
(0.3)
|
|
(0.2)
|
|
-
|
|
0.8
|
|
Home
equity
|
|
(0.2)
|
|
-
|
|
-
|
|
0.6
|
|
0.1
|
|
Other
consumer
|
|
0.4
|
|
0.2
|
|
0.3
|
|
0.9
|
|
1.4
|
|
Total
|
|
(0.1)
|
|
(0.1)
|
|
0.1
|
|
1.5
|
|
2.3
|
|
Total net loan charge-offs
|
$
|
12.4
|
$
|
13.4
|
$
|
17.3
|
$
|
8.5
|
$
|
10.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.12
|
%
|
0.12
|
%
|
0.15
|
%
|
0.08
|
%
|
0.10
|
%
|
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
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
Total non-interest
expense
|
|
$
311.9
|
|
$
646.4
|
|
$
293.6
|
|
$
304.0
|
|
$
320.1
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Stop &
Shop contract termination costs
|
|
(12.1)
|
|
-
|
|
-
|
|
-
|
|
-
|
Merger-related
expenses
|
|
(7.5)
|
|
(4.9)
|
|
(4.6)
|
|
(18.5)
|
|
(17.9)
|
Goodwill
impairment
|
|
-
|
|
(353.0)
|
|
-
|
|
-
|
|
-
|
Total
|
|
(19.6)
|
|
(357.9)
|
|
(4.6)
|
|
(18.5)
|
|
(17.9)
|
Operating non-interest expense
|
|
292.3
|
|
288.5
|
|
289.0
|
|
285.5
|
|
302.2
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
of other acquisition-related
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(11.0)
|
|
(9.7)
|
|
(10.2)
|
|
(10.2)
|
|
(10.7)
|
Operating
lease expense
|
|
(7.8)
|
|
(8.5)
|
|
(9.3)
|
|
(8.8)
|
|
(9.8)
|
Other
(1)
|
|
(1.7)
|
|
(1.3)
|
|
(5.1)
|
|
(1.9)
|
|
(1.9)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
271.8
|
|
$
269.0
|
|
$
264.4
|
|
$
264.6
|
|
$
279.8
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
393.5
|
|
$
390.2
|
|
$
398.7
|
|
$
413.0
|
|
$
403.7
|
Total non-interest
income
|
|
94.6
|
|
178.2
|
|
101.1
|
|
89.6
|
|
123.8
|
Total revenues
|
|
488.1
|
|
568.4
|
|
499.8
|
|
502.6
|
|
527.5
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(7.8)
|
|
(8.5)
|
|
(9.3)
|
|
(8.8)
|
|
(9.8)
|
BOLI FTE
adjustment
|
|
0.6
|
|
0.9
|
|
0.8
|
|
1.0
|
|
0.8
|
Gain on sale
of business, net of expenses
|
|
-
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
Other
(2)
|
|
(1.1)
|
|
-
|
|
(0.1)
|
|
-
|
|
(0.3)
|
Total revenues for efficiency ratio
|
|
$
479.8
|
|
$
484.9
|
|
$
491.2
|
|
$
494.8
|
|
$
518.2
|
Efficiency ratio
|
|
56.6%
|
|
55.5%
|
|
53.8%
|
|
53.5%
|
|
54.0%
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in
millions)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
Net interest
income
|
|
$
385.9
|
|
$
382.8
|
|
$
391.4
|
|
$
405.6
|
|
$
396.0
|
Non-interest
income
|
|
94.6
|
|
178.2
|
|
101.1
|
|
89.6
|
|
123.8
|
Non-interest
expense
|
|
(311.9)
|
|
(646.4)
|
|
(293.6)
|
|
(304.0)
|
|
(320.1)
|
Pre-provision net revenue
|
|
168.6
|
|
(85.4)
|
|
198.9
|
|
191.2
|
|
199.7
|
Non-operating
income
|
|
-
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
Non-operating
expense
|
|
19.6
|
|
357.9
|
|
4.6
|
|
18.5
|
|
17.9
|
Operating pre-provision net revenue
|
|
$
188.2
|
|
$
196.6
|
|
$
203.5
|
|
$
209.7
|
|
$
217.6
|
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)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
Net income (loss)
available to common shareholders
|
|
$
141.0
|
|
$ (148.8)
|
|
$
141.1
|
|
$
86.4
|
|
$
126.9
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
Stop &
Shop contract termination costs
|
|
12.1
|
|
-
|
|
-
|
|
-
|
|
-
|
Merger-related
expenses
|
|
7.5
|
|
4.9
|
|
4.6
|
|
18.5
|
|
17.9
|
Goodwill
impairment (1)
|
|
-
|
|
353.0
|
|
-
|
|
-
|
|
-
|
Gain on sale
of business, net of expenses
|
|
-
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
19.6
|
|
282.0
|
|
4.6
|
|
18.5
|
|
17.9
|
Tax effect
(1)
|
|
(4.1)
|
|
14.5
|
|
(1.0)
|
|
(3.9)
|
|
(3.7)
|
Total adjustments, net of tax
|
|
15.5
|
|
296.5
|
|
3.6
|
|
14.6
|
|
14.2
|
Operating earnings
|
|
$
156.5
|
|
$
147.7
|
|
$
144.7
|
|
$
101.0
|
|
$
141.1
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.33
|
|
$
(0.35)
|
|
$
0.34
|
|
$
0.21
|
|
$
0.30
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
Stop &
Shop contract termination costs
|
|
0.02
|
|
-
|
|
-
|
|
-
|
|
-
|
Merger-related
expenses
|
|
0.02
|
|
0.01
|
|
-
|
|
0.03
|
|
0.03
|
Goodwill
impairment (1)
|
|
-
|
|
0.83
|
|
-
|
|
-
|
|
-
|
Gain on sale
of business, net of expenses
|
|
-
|
|
(0.14)
|
|
-
|
|
-
|
|
-
|
Total adjustments per common share
|
|
0.04
|
|
0.70
|
|
-
|
|
0.03
|
|
0.03
|
Operating EPS
|
|
$
0.37
|
|
$
0.35
|
|
$
0.34
|
|
$
0.24
|
|
$
0.33
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 64,057
|
|
$ 62,396
|
|
$ 61,293
|
|
$ 61,841
|
|
$ 58,603
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
0.98%
|
|
0.95%
|
|
0.94%
|
|
0.65%
|
|
0.96%
|
|
|
|
|
|
|
|
|
|
|
|
(1) The goodwill
impairment charge for the three months ended December 31, 2020 is
non-tax-deductible.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RETURN
ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
Operating
earnings
|
|
$
156.5
|
|
$
147.7
|
|
$
144.7
|
|
$
101.0
|
|
$
141.1
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
7,606
|
|
$
7,884
|
|
$
7,801
|
|
$
7,757
|
|
$
7,804
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
7,362
|
|
7,640
|
|
7,557
|
|
7,513
|
|
7,560
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,842
|
|
3,213
|
|
3,249
|
|
3,259
|
|
3,269
|
Average tangible
common equity
|
|
$
4,520
|
|
$
4,427
|
|
$
4,308
|
|
$
4,254
|
|
$
4,291
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
13.8%
|
|
13.3%
|
|
13.4%
|
|
9.5%
|
|
13.2%
|
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)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
Common dividends
paid
|
|
$
75.7
|
|
$
75.6
|
|
$
75.7
|
|
$
75.5
|
|
$
77.3
|
Operating
earnings
|
|
$
156.5
|
|
$
147.7
|
|
$
144.7
|
|
$
101.0
|
|
$
141.1
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
48.4%
|
|
51.2%
|
|
52.3%
|
|
74.8%
|
|
54.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
Total stockholders'
equity
|
|
$
7,592
|
|
$
7,603
|
|
$
7,831
|
|
$
7,763
|
|
$
7,726
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Common
equity
|
|
7,348
|
|
7,359
|
|
7,587
|
|
7,519
|
|
7,482
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,835
|
|
2,846
|
|
3,244
|
|
3,254
|
|
3,264
|
Tangible common
equity
|
|
$
4,513
|
|
$
4,513
|
|
$
4,343
|
|
$
4,265
|
|
$
4,218
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 64,172
|
|
$ 63,092
|
|
$ 60,871
|
|
$ 61,510
|
|
$ 60,433
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,835
|
|
2,846
|
|
3,244
|
|
3,254
|
|
3,264
|
Tangible
assets
|
|
$ 61,337
|
|
$ 60,246
|
|
$ 57,627
|
|
$ 58,256
|
|
$ 57,169
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.4%
|
|
7.5%
|
|
7.5%
|
|
7.3%
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
(in millions, except
per common share data)
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
Tangible common
equity
|
|
$
4,513
|
|
$
4,513
|
|
$
4,343
|
|
$
4,265
|
|
$
4,218
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
536.20
|
|
533.68
|
|
533.67
|
|
533.59
|
|
533.47
|
Less: Shares
classified as treasury shares
|
|
108.98
|
|
109.00
|
|
109.00
|
|
109.00
|
|
109.00
|
Common shares
outstanding
|
|
427.22
|
|
424.68
|
|
424.67
|
|
424.59
|
|
424.47
|
Less: Unallocated
ESOP shares
|
|
5.49
|
|
5.57
|
|
5.66
|
|
5.75
|
|
5.84
|
Common
shares
|
|
421.73
|
|
419.11
|
|
419.01
|
|
418.84
|
|
418.63
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
10.70
|
|
$
10.77
|
|
$
10.18
|
|
$
10.07
|
|
$
10.07
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-first-quarter-net-income-of-144-5-million-or-0-33-per-common-share-301274302.html
SOURCE People's United Financial, Inc.