BRIDGEPORT, Conn., July 15, 2021 /PRNewswire/ -- People's United
Financial, Inc. (NASDAQ: PBCT) today reported results for the
second quarter of 2021. These results along with comparison periods
are summarized below:
|
($ in millions,
except per common share data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Jun. 30,
2021
|
|
Mar. 31,
2021
|
|
Jun. 30,
2020
|
|
|
|
|
|
|
|
|
Net income
|
|
$
170.8
|
|
$
144.5
|
|
$
89.9
|
Net income
available
|
|
167.3
|
|
141.0
|
|
86.4
|
|
to common
shareholders
|
|
|
|
|
Per common
share
|
|
0.39
|
|
0.33
|
|
0.21
|
|
|
|
|
|
|
|
|
Operating
earnings1
|
|
176.1
|
|
156.5
|
|
101.0
|
|
Per common
share
|
|
0.41
|
|
0.37
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
380.9
|
|
$
385.9
|
|
$
405.6
|
|
Net interest
margin
|
|
2.70%
|
|
2.74%
|
|
3.05%
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
99.0
|
|
94.6
|
|
89.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
$
305.0
|
|
$
311.9
|
|
$
304.0
|
Operating
non-interest expense1
|
293.8
|
|
292.3
|
|
285.5
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
57.4%
|
|
56.6%
|
|
53.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
Loans
|
|
$
41,683
|
|
$
42,854
|
|
$
45,153
|
Deposits
|
|
53,041
|
|
52,876
|
|
48,447
|
|
|
|
|
|
|
|
|
Period-end
balances
|
|
|
|
|
|
|
Loans
|
|
41,366
|
|
42,770
|
|
45,452
|
Deposits
|
|
52,581
|
|
53,475
|
|
49,934
|
|
|
|
|
|
|
|
|
1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
|
|
|
"We are pleased with the overwhelming shareholder approval
received during the quarter for the announced merger with M&T,"
said Jack Barnes, Chairman and Chief
Executive Officer. "The vote reflects investor confidence in the
value of merging two market-leading financial institutions, and in
the ability of the combined company to better serve clients across
some of the most populated and attractive banking markets in the
nation. While preparations for the transaction's close and
integration move forward, our most important objective remains
servicing the needs of customers, communities, and colleagues.
Looking to the future, we are excited about executing on the growth
opportunities ahead and building upon the extraordinary legacy of
People's United."
"We delivered another quarter of strong financial performance,"
stated David Rosato, Senior
Executive Vice President and Chief Financial Officer. "Record
quarterly operating income of $176.1
million, increased 12.5 percent linked-quarter and generated
an operating return on average tangible equity of 15.4 percent.
These results, which further highlight the strengths of the
franchise, included higher fee revenues, well-controlled expenses,
and a negative provision for credit losses primarily driven by
further improvements in the economic outlook. The growth in
fee revenues was broad-based with notable increases in swap income,
and our wealth and cash management businesses. We are pleased with
our ability to hold net interest margin relatively steady for the
quarter considering the current economic environment. The margin of
2.70 percent was only four basis points below the first quarter as
the unfavorable impact of lower yields in the securities portfolio
and increased excess liquidity was largely offset by a reduction in
deposit costs for the eighth consecutive quarter, an additional
calendar day and continued stable loan yields."
Rosato continued, "Period-end loans and deposits decreased three
percent and two percent, respectively, from the close of the first
quarter. The $1.4 billion decline in
period-end loans was driven by the forgiveness of $970 million in PPP balances, $530 million in lower retail balances, and a
$130 million reduction in mortgage
warehouse. Conversely, the loan portfolio benefited from strong
results in our specialized industry verticals within C&I and
LEAF. The $894 million decline in
period-end deposits was equally attributable to lower brokered
deposit balances and seasonal outflows in our municipal business.
Importantly, non-interest-bearing deposits continued to grow, up
three percent linked-quarter and now account for 32 percent of
total period-end balances. Finally, capital ratios remain strong
and improved linked-quarter for both the Bank and Holding
Company."
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|
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|
|
|
|
|
|
|
|
As of and for
the Three Months Ended
|
|
|
|
Jun. 30,
2021
|
|
Mar. 31,
2021
|
|
Jun. 30,
2020
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
to average total loans
|
|
0.10%
|
|
0.12%
|
|
0.08%
|
Non-performing
loans
as a percentage of total loans
|
|
0.79%
|
|
0.83%
|
|
0.65%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Returns
|
|
|
|
|
|
|
Return on average
assets1
|
|
1.07%
|
|
0.90%
|
|
0.58%
|
Return on average
tangible common equity1
|
|
14.7%
|
|
12.5%
|
|
8.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios
|
|
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|
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|
People's United
Financial, Inc.
|
|
|
|
|
|
|
Tangible common
equity / tangible assets
|
|
7.7%
|
|
7.4%
|
|
7.3%
|
Tier 1
leverage
|
|
8.4%
|
|
8.3%
|
|
8.0%
|
Common equity tier
1
|
|
11.3%
|
|
11.0%
|
|
9.8%
|
Tier 1
risk-based
|
|
11.8%
|
|
11.6%
|
|
10.3%
|
Total
risk-based
|
|
13.1%
|
|
12.9%
|
|
11.8%
|
|
|
|
|
|
|
|
|
People's United Bank,
N.A.
|
|
|
|
|
|
|
Tier 1
leverage
|
|
|
8.8%
|
|
8.7%
|
|
8.5%
|
Common equity tier
1
|
|
|
12.3%
|
|
12.2%
|
|
10.9%
|
Tier 1
risk-based
|
|
|
12.3%
|
|
12.2%
|
|
10.9%
|
Total
risk-based
|
|
|
13.5%
|
|
13.5%
|
|
12.3%
|
|
|
|
|
|
|
|
|
1See
Non-GAAP Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
The Board of Directors declared a $0.1825 per common share quarterly dividend
payable August 15, 2021 to
shareholders of record on August 1,
2021. Based on the closing stock price on July 14, 2021, the dividend yield on People's
United Financial common stock is 4.4 percent.
People's United Bank, N.A. is a subsidiary of People's United
Financial, Inc., a diversified, community-focused financial
services company headquartered in the Northeast with 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.
2Q 2021 Financial Highlights
Summary
- Net income totaled $170.8
million, or $0.39 per common
share.
-
- Net income available to common shareholders totaled
$167.3 million.
- Operating earnings totaled $176.1
million, or $0.41 per common
share (See Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $380.9
million in 2Q21 compared to $385.9
million in 1Q21.
-
- Includes $24.9 million associated
with PPP loans in 2Q21 ($20.0 million
in net fees and $4.9 million in net
interest income).
- Net interest margin decreased four basis points from 1Q21 to
2.70% reflecting:
-
- Lower rates on deposits (increase of four basis points).
- One additional calendar day in 2Q21 (increase of two basis
points).
- Lower yields on the securities portfolio (decrease of six basis
points).
- Lower yields on the loan portfolio (decrease of four basis
points).
- Excess liquidity resulting from deposits at the Federal Reserve
Bank (decrease of two basis points).
- PPP loans had a seven basis point favorable impact on the net
interest margin in 2Q21.
- Provision for credit losses on loans totaled $(40.7) million.
-
- Allowance for credit losses on loans decreased $51.0 million.
- Net loan charge-offs totaled $10.3
million.
- Net loan charge-off ratio of 0.10%.
- Non-interest income totaled $99.0
million in 2Q21 compared to $94.6
million in 1Q21.
-
- Customer interest rate swap income increased $2.3 million.
- Investment management fees increased $1.6 million.
- Bank service charges increased $1.4
million.
- At June 30, 2021, assets under
discretionary management totaled $10.1
billion.
- Non-interest expense totaled $305.0
million in 2Q21 compared to $311.9
million in 1Q21.
-
- Operating non-interest expense totaled $293.8 million in 2Q21 and $292.3 million in 1Q21 (See Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense increased $4.8 million, primarily reflecting higher
incentive-related accruals offset by lower payroll costs in
2Q21.
- Amortization of other acquisition-related intangible assets
decreased $2.2 million.
- Professional and outside services expense, excluding
$6.0 million and $9.4 million of non-operating expenses in 2Q21
and 1Q21, respectively, decreased $0.2
million.
- Other non-interest expense includes non-operating expenses
totaling $5.0 million in 2Q21 and
$10.1 million in 1Q21.
- The efficiency ratio was 57.4% for 2Q21 compared to 56.6% for
1Q21 and 53.5% for 2Q20 (See Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 20.8% for both 2Q21 and the
first six months of 2021, 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 $31.9
billion at June 30, 2021, an
$874 million decrease from
March 31, 2021.
-
- PPP loans decreased $884 million
($86 million in initial funding less
$970 million in loan
forgiveness).
- The mortgage warehouse portfolio decreased $130 million.
- The New York multifamily
portfolio decreased $62 million.
- The equipment financing portfolio increased $64 million.
- Average commercial loans totaled $31.9
billion in 2Q21, a $550
million decrease from 1Q21.
-
- The average mortgage warehouse portfolio decreased $349 million.
- Average PPP loans decreased $160
million.
- The average New York
multifamily portfolio decreased $49
million.
- The average equipment financing portfolio increased
$46 million.
- Commercial deposits totaled $24.9
billion at June 30, 2021
compared to $23.3 billion at
March 31, 2021.
- The ratio of non-accrual commercial loans to total commercial
loans was 0.82% at June 30, 2021
compared to 0.85% at March 31,
2021.
- Non-performing commercial assets totaled $269.2 million at June 30,
2021 compared to $286.1
million at March 31,
2021.
- For the commercial loan portfolio, the allowance for credit
losses as a percentage of commercial loans was 0.76% at
June 30, 2021 compared to 0.77% at
March 31, 2021.
- The commercial allowance for credit losses represented 93% of
non-accrual commercial loans at June 30,
2021 compared to 90% at March 31,
2021.
Retail Banking
- Residential mortgage loans totaled $7.6
billion at June 30, 2021, a
$441 million decrease from
March 31, 2021.
-
- Average residential mortgage loans totaled $7.8 billion in 2Q21, a $500 million decrease from 1Q21.
- Home equity loans totaled $1.8
billion at June 30, 2021, an
$84 million decrease from
March 30, 2021.
-
- Average home equity loans totaled $1.8
billion in 2Q21, a $112
million decrease from 1Q21.
- Retail deposits totaled $27.7
billion at June 30, 2021
compared to $30.2 billion at
March 31, 2021.
- The ratio of non-accrual residential mortgage loans to
residential mortgage loans was 0.65% at June
30, 2021 compared to 0.71% at March
31, 2021.
- The ratio of non-accrual home equity loans to home equity loans
was 1.01% at June 30, 2021 compared
to 1.00% at March 31, 2021.
- For the retail loan portfolio, the allowance for credit losses
as a percentage of retail loans was 1.13% at June 30, 2021 compared to 1.48% at March 31, 2021.
- The retail allowance for credit losses represented 158% of
non-accrual retail loans at June 30,
2021 compared to 195% at March 31,
2021.
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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|
|
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FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
As of and for the
Three Months Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(dollars in millions,
except per common share data)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
Earnings
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
388.7
|
$
|
393.5
|
$
|
390.2
|
$
|
398.7
|
$
|
413.0
|
|
Net interest
income
|
|
380.9
|
|
385.9
|
|
382.8
|
|
391.4
|
|
405.6
|
|
Provision for
credit losses
|
|
(40.8)
|
|
(13.6)
|
|
14.7
|
|
26.8
|
|
80.8
|
|
Non-interest
income (1)
|
|
99.0
|
|
94.6
|
|
178.2
|
|
101.1
|
|
89.6
|
|
Non-interest
expense (1)
|
|
305.0
|
|
311.9
|
|
646.4
|
|
293.6
|
|
304.0
|
|
Income (loss)
before income tax expense
|
|
215.7
|
|
182.2
|
|
(100.1)
|
|
172.1
|
|
110.4
|
|
Net income
(loss)
|
|
170.8
|
|
144.5
|
|
(145.3)
|
|
144.6
|
|
89.9
|
|
Net income
(loss) available to common shareholders (1)
|
|
167.3
|
|
141.0
|
|
(148.8)
|
|
141.1
|
|
86.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (2)
|
|
2.70
|
%
|
2.74
|
%
|
2.84
|
%
|
2.97
|
%
|
3.05
|
%
|
Return on
average assets (1), (2)
|
|
1.07
|
|
0.90
|
|
(0.93)
|
|
0.94
|
|
0.58
|
|
Return on
average common equity (2)
|
|
9.1
|
|
7.7
|
|
(7.8)
|
|
7.5
|
|
4.6
|
|
Return on
average tangible common equity (1), (2)
|
|
14.7
|
|
12.5
|
|
(13.4)
|
|
13.1
|
|
8.1
|
|
Efficiency
ratio (1)
|
|
57.4
|
|
56.6
|
|
55.5
|
|
53.8
|
|
53.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.40
|
$
|
0.34
|
$
|
(0.36)
|
$
|
0.34
|
$
|
0.21
|
|
Diluted (1)
|
|
0.39
|
|
0.33
|
|
(0.35)
|
|
0.34
|
|
0.21
|
|
Dividends paid
per common share
|
|
0.1825
|
|
0.1800
|
|
0.1800
|
|
0.1800
|
|
0.1800
|
|
Common
dividend payout ratio (1)
|
|
46.2
|
%
|
53.7
|
%
|
(50.8)
|
%
|
53.6
|
%
|
87.4
|
%
|
Book value per
common share
|
$
|
17.77
|
$
|
17.42
|
$
|
17.56
|
$
|
18.11
|
$
|
17.95
|
|
Tangible book
value per common share (1)
|
|
11.08
|
|
10.70
|
|
10.77
|
|
10.37
|
|
10.18
|
|
Stock
price:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
19.62
|
|
19.40
|
|
13.58
|
|
12.36
|
|
13.99
|
|
Low
|
|
16.75
|
|
12.66
|
|
9.98
|
|
9.74
|
|
9.37
|
|
Close
|
|
17.14
|
|
17.90
|
|
12.93
|
|
10.31
|
|
11.57
|
|
Common shares
outstanding (in millions) (1)
|
|
427.77
|
|
427.22
|
|
424.68
|
|
424.67
|
|
424.59
|
|
Weighted
average diluted common shares (in millions)
|
|
425.08
|
|
422.58
|
|
420.39
|
|
420.29
|
|
420.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for
the
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
June 30,
|
|
|
(dollars in millions,
except per common share data)
|
|
2021
|
|
2020
|
|
Earnings
Data:
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
782.2
|
$
|
816.7
|
|
Net interest
income
|
|
766.8
|
|
801.6
|
|
Provision for
credit losses
|
|
(54.4)
|
|
114.3
|
|
Non-interest
income
|
|
193.6
|
|
213.4
|
|
Non-interest
expense (1)
|
|
616.9
|
|
624.1
|
|
Income before
income tax expense
|
|
397.9
|
|
276.6
|
|
Net
income
|
|
315.3
|
|
220.3
|
|
Net income
available to common shareholders (1)
|
|
308.3
|
|
213.3
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
Net interest
margin (2)
|
|
2.72
|
%
|
3.08
|
%
|
Return on
average assets (1), (2)
|
|
0.99
|
|
0.73
|
|
Return on
average common equity (2)
|
|
8.4
|
|
5.7
|
|
Return on
average tangible common equity (1), (2)
|
|
13.6
|
|
10.0
|
|
Efficiency
ratio (1)
|
|
57.0
|
|
53.7
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
Basic
|
$
|
0.73
|
$
|
0.50
|
|
Diluted (1)
|
|
0.73
|
|
0.50
|
|
Dividends paid
per common share
|
|
0.3625
|
|
0.3575
|
|
Common
dividend payout ratio (1)
|
|
49.6
|
%
|
71.7
|
%
|
Book value per
common share
|
$
|
17.77
|
$
|
17.95
|
|
Tangible book
value per common share (1)
|
|
11.08
|
|
10.18
|
|
Stock
price:
|
|
|
|
|
|
High
|
|
19.62
|
|
17.00
|
|
Low
|
|
12.66
|
|
9.37
|
|
Close
|
|
17.14
|
|
11.57
|
|
Common shares
oustanding (in millions) (1)
|
|
427.77
|
|
424.59
|
|
Weighted
average diluted common shares (in millions)
|
|
423.91
|
|
424.82
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
(2)
Annualized.
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
63,341
|
$
|
64,172
|
$
|
63,092
|
$
|
60,871
|
$
|
61,510
|
|
Loans
|
|
41,366
|
|
42,770
|
|
43,870
|
|
45,231
|
|
45,452
|
|
Securities
|
|
10,597
|
|
10,445
|
|
9,191
|
|
8,270
|
|
8,233
|
|
Short-term investments
|
|
5,249
|
|
4,992
|
|
3,766
|
|
439
|
|
987
|
|
Allowance for credit losses on loans
|
|
348
|
|
399
|
|
425
|
|
424
|
|
414
|
|
Goodwill and other acquisition-related intangible assets
|
|
2,826
|
|
2,835
|
|
2,846
|
|
3,244
|
|
3,254
|
|
Deposits
|
|
52,581
|
|
53,475
|
|
52,138
|
|
49,637
|
|
49,934
|
|
Borrowings
|
|
952
|
|
1,156
|
|
1,148
|
|
1,237
|
|
1,782
|
|
Notes and debentures
|
|
1,002
|
|
1,003
|
|
1,010
|
|
1,012
|
|
1,015
|
|
Stockholders' equity
|
|
7,750
|
|
7,592
|
|
7,603
|
|
7,831
|
|
7,763
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
43,656
|
|
43,833
|
|
45,075
|
|
45,756
|
|
45,657
|
|
People's United
Bank, N.A.
|
|
43,625
|
|
43,812
|
|
45,016
|
|
45,685
|
|
45,615
|
|
Non-accrual loans
|
|
328
|
|
353
|
|
329
|
|
306
|
|
296
|
|
Net loan charge-offs
|
|
10.3
|
|
12.4
|
|
13.4
|
|
17.3
|
|
8.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
41,683
|
$
|
42,854
|
$
|
44,061
|
$
|
44,853
|
$
|
45,153
|
|
Securities (2)
|
|
10,418
|
|
9,561
|
|
8,390
|
|
7,922
|
|
8,240
|
|
Short-term investments
|
|
5,469
|
|
5,000
|
|
2,582
|
|
842
|
|
774
|
|
Total earning assets
|
|
57,570
|
|
57,415
|
|
55,034
|
|
53,617
|
|
54,168
|
|
Total assets
|
|
63,930
|
|
64,057
|
|
62,396
|
|
61,293
|
|
61,841
|
|
Deposits
|
|
53,041
|
|
52,876
|
|
50,674
|
|
49,542
|
|
48,447
|
|
Borrowings
|
|
1,012
|
|
1,143
|
|
1,233
|
|
1,283
|
|
2,911
|
|
Notes and debentures
|
|
1,003
|
|
1,008
|
|
1,011
|
|
1,014
|
|
1,014
|
|
Total funding liabilities
|
|
55,056
|
|
55,027
|
|
52,918
|
|
51,839
|
|
52,372
|
|
Stockholders' equity
|
|
7,634
|
|
7,606
|
|
7,884
|
|
7,801
|
|
7,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
|
0.10
|
%
|
0.12
|
%
|
0.12
|
%
|
0.15
|
%
|
0.08
|
%
|
Non-performing assets to total loans, real estate owned
|
|
|
|
|
|
|
|
|
|
|
|
and repossessed
assets
|
|
0.82
|
|
0.85
|
|
0.78
|
|
0.71
|
|
0.69
|
|
Allowance for credit losses on loans to:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.84
|
|
0.93
|
|
0.97
|
|
0.94
|
|
0.91
|
|
Non-accrual
loans
|
|
106.1
|
|
113.0
|
|
129.1
|
|
138.4
|
|
139.8
|
|
Average stockholders' equity to average total assets
|
|
11.9
|
|
11.9
|
|
12.6
|
|
12.7
|
|
12.5
|
|
Stockholders' equity to total assets
|
|
12.2
|
|
11.8
|
|
12.1
|
|
12.9
|
|
12.6
|
|
Tangible common equity to tangible assets (3)
|
|
7.7
|
|
7.4
|
|
7.5
|
|
7.5
|
|
7.3
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
13.1
|
|
12.9
|
|
12.4
|
|
11.8
|
|
11.8
|
|
People's United
Bank, N.A.
|
|
13.5
|
|
13.5
|
|
12.8
|
|
12.3
|
|
12.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) June 30, 2021
amounts and ratios are preliminary.
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
March
31,
|
Dec. 31,
|
June
30,
|
(in
millions)
|
2021
|
2021
|
2020
|
2020
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
516.3
|
$
464.2
|
$
477.3
|
$
491.9
|
Short-term
investments
|
5,249.4
|
4,992.1
|
3,766.0
|
987.4
|
Securities:
|
|
|
|
|
Debt
securities available-for-sale, at fair value
|
6,328.6
|
6,160.6
|
4,925.5
|
4,080.3
|
Debt
securities held-to-maturity, at amortized cost
|
4,003.1
|
4,016.8
|
3,993.8
|
3,848.6
|
Federal
Reserve Bank and Federal Home Loan Bank stock, at cost
|
264.9
|
266.2
|
266.6
|
298.3
|
Equity
securities, at fair value
|
-
|
1.5
|
5.3
|
5.8
|
Total securities
|
10,596.6
|
10,445.1
|
9,191.2
|
8,233.0
|
Loans
held-for-sale
|
5.4
|
10.1
|
26.5
|
12.2
|
Loans:
|
|
|
|
|
Commercial and
industrial (1)
|
13,627.4
|
14,288.2
|
14,982.3
|
13,999.5
|
Commercial
real estate (1)
|
13,243.2
|
13,520.1
|
13,336.9
|
14,593.9
|
Equipment
financing
|
4,990.9
|
4,927.2
|
4,930.0
|
4,880.1
|
Total Commercial Portfolio
|
31,861.5
|
32,735.5
|
33,249.2
|
33,473.5
|
Residential
mortgage
|
7,626.2
|
8,067.2
|
8,518.9
|
9,623.7
|
Home equity
and other consumer
|
1,877.9
|
1,967.0
|
2,101.4
|
2,354.3
|
Total Retail Portfolio
|
9,504.1
|
10,034.2
|
10,620.3
|
11,978.0
|
Total loans
|
41,365.6
|
42,769.7
|
43,869.5
|
45,451.5
|
Less allowance
for credit losses on loans
|
(348.1)
|
(399.1)
|
(425.1)
|
(414.0)
|
Total loans, net
|
41,017.5
|
42,370.6
|
43,444.4
|
45,037.5
|
Goodwill and other
acquisition-related intangible assets
|
2,825.8
|
2,834.6
|
2,845.9
|
3,253.7
|
Bank-owned life
insurance
|
713.7
|
713.1
|
711.6
|
708.1
|
Premises and
equipment, net
|
261.8
|
269.5
|
276.7
|
285.7
|
Other
assets
|
2,154.2
|
2,073.2
|
2,352.2
|
2,500.2
|
Total assets
|
$
63,340.7
|
$
64,172.5
|
$
63,091.8
|
$
61,509.7
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
16,722.8
|
$
16,266.5
|
$
15,881.7
|
$
13,656.9
|
Savings
|
6,710.2
|
6,517.7
|
6,029.7
|
5,759.4
|
Interest-bearing checking and money market
|
24,705.9
|
25,782.8
|
24,567.5
|
22,943.6
|
Time
|
4,442.3
|
4,908.3
|
5,658.8
|
7,574.4
|
Total deposits
|
52,581.2
|
53,475.3
|
52,137.7
|
49,934.3
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
569.7
|
569.7
|
569.7
|
1,289.7
|
Customer
repurchase agreements
|
382.5
|
436.2
|
452.9
|
342.1
|
Federal funds
purchased
|
-
|
150.0
|
125.0
|
150.0
|
Total borrowings
|
952.2
|
1,155.9
|
1,147.6
|
1,781.8
|
Notes and
debentures
|
1,001.6
|
1,003.3
|
1,009.6
|
1,014.5
|
Other
liabilities
|
1,056.1
|
945.8
|
1,194.1
|
1,016.1
|
Total liabilities
|
55,591.1
|
56,580.3
|
55,489.0
|
53,746.7
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred
stock
|
244.1
|
244.1
|
244.1
|
244.1
|
Common
stock
|
5.4
|
5.4
|
5.3
|
5.3
|
Additional paid-in
capital
|
7,709.4
|
7,693.9
|
7,663.6
|
7,651.2
|
Retained
earnings
|
1,516.5
|
1,426.9
|
1,363.6
|
1,524.6
|
Unallocated common
stock of ESOP, at cost
|
(112.0)
|
(113.8)
|
(115.6)
|
(119.3)
|
Accumulated other
comprehensive loss
|
(144.8)
|
(195.3)
|
(89.2)
|
(73.9)
|
Treasury stock, at
cost
|
(1,469.0)
|
(1,469.0)
|
(1,469.0)
|
(1,469.0)
|
Total stockholders' equity
|
7,749.6
|
7,592.2
|
7,602.8
|
7,763.0
|
Total liabilities and stockholders' equity
|
$
63,340.7
|
$
64,172.5
|
$
63,091.8
|
$
61,509.7
|
|
|
|
|
|
(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
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
(in millions, except
per common share data)
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
107.9
|
|
$
116.1
|
|
$
111.3
|
|
$
110.7
|
|
$
112.4
|
Commercial
real estate
|
101.6
|
|
98.8
|
|
106.1
|
|
110.5
|
|
122.4
|
Equipment
financing
|
62.5
|
|
62.8
|
|
62.1
|
|
65.4
|
|
67.6
|
Residential
mortgage
|
64.4
|
|
69.9
|
|
74.9
|
|
82.1
|
|
84.8
|
Home equity
and other consumer
|
16.2
|
|
16.5
|
|
18.7
|
|
19.9
|
|
20.1
|
Total interest on loans
|
352.6
|
|
364.1
|
|
373.1
|
|
388.6
|
|
407.3
|
Securities
|
52.4
|
|
51.4
|
|
47.2
|
|
47.5
|
|
49.8
|
Short-term
investments
|
1.3
|
|
1.2
|
|
0.8
|
|
0.4
|
|
0.2
|
Loans
held-for-sale
|
-
|
|
0.3
|
|
0.4
|
|
0.3
|
|
0.3
|
Total interest and dividend income
|
406.3
|
|
417.0
|
|
421.5
|
|
436.8
|
|
457.6
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
17.1
|
|
22.7
|
|
30.1
|
|
36.5
|
|
41.7
|
Borrowings
|
1.1
|
|
1.2
|
|
1.3
|
|
1.5
|
|
2.0
|
Notes and
debentures
|
7.2
|
|
7.2
|
|
7.3
|
|
7.4
|
|
8.3
|
Total interest expense
|
25.4
|
|
31.1
|
|
38.7
|
|
45.4
|
|
52.0
|
Net interest income
|
380.9
|
|
385.9
|
|
382.8
|
|
391.4
|
|
405.6
|
Provision for credit
losses on loans
|
(40.7)
|
|
(13.6)
|
|
14.7
|
|
27.1
|
|
80.8
|
Provision for credit
losses on securities
|
(0.1)
|
|
-
|
|
-
|
|
(0.3)
|
|
-
|
Net interest income after provision for credit losses
|
421.7
|
|
399.5
|
|
368.1
|
|
364.6
|
|
324.8
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
24.9
|
|
23.5
|
|
24.7
|
|
24.5
|
|
20.3
|
Investment
management fees
|
21.5
|
|
19.9
|
|
18.9
|
|
18.8
|
|
17.4
|
Commercial
banking lending fees
|
14.1
|
|
13.6
|
|
15.5
|
|
12.7
|
|
10.6
|
Operating
lease income
|
11.2
|
|
11.3
|
|
12.9
|
|
12.4
|
|
11.8
|
Cash
management fees
|
9.6
|
|
9.2
|
|
9.1
|
|
8.8
|
|
8.1
|
Customer
interest rate swap income, net
|
2.4
|
|
0.1
|
|
2.2
|
|
1.2
|
|
2.7
|
Gain on sale
of business, net of expenses (1)
|
-
|
|
-
|
|
75.9
|
|
-
|
|
-
|
Other
non-interest income
|
15.3
|
|
17.0
|
|
19.0
|
|
22.7
|
|
18.7
|
Total non-interest income
|
99.0
|
|
94.6
|
|
178.2
|
|
101.1
|
|
89.6
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
177.6
|
|
172.8
|
|
166.6
|
|
166.5
|
|
167.8
|
Occupancy and
equipment
|
50.0
|
|
49.1
|
|
50.9
|
|
49.1
|
|
48.0
|
Professional
and outside services
|
30.0
|
|
33.6
|
|
24.9
|
|
24.1
|
|
25.7
|
Amortization
of other acquisition-related intangible assets
|
8.8
|
|
11.0
|
|
9.7
|
|
10.2
|
|
10.2
|
Regulatory
assessments
|
7.8
|
|
8.1
|
|
6.9
|
|
8.4
|
|
8.7
|
Operating
lease expense
|
7.6
|
|
7.8
|
|
8.5
|
|
9.3
|
|
8.8
|
Goodwill
impairment
|
-
|
|
-
|
|
353.0
|
|
-
|
|
-
|
Other
non-interest expense
|
23.2
|
|
29.5
|
|
25.9
|
|
26.0
|
|
34.8
|
Total non-interest expense (1)
|
305.0
|
|
311.9
|
|
646.4
|
|
293.6
|
|
304.0
|
Income (loss) before income tax expense
|
215.7
|
|
182.2
|
|
(100.1)
|
|
172.1
|
|
110.4
|
Income tax
expense
|
44.9
|
|
37.7
|
|
45.2
|
|
27.5
|
|
20.5
|
Net income (loss)
|
170.8
|
|
144.5
|
|
(145.3)
|
|
144.6
|
|
89.9
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
Net income (loss) available to common shareholders
|
$
167.3
|
|
$
141.0
|
|
$
(148.8)
|
|
$
141.1
|
|
$
86.4
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.40
|
|
$
0.34
|
|
$
(0.36)
|
|
$
0.34
|
|
$
0.21
|
Diluted
|
0.39
|
|
0.33
|
|
(0.35)
|
|
0.34
|
|
0.21
|
|
|
|
|
|
|
|
|
|
|
(1) The gain on sale
of business, net of expenses, is considered non-operating income.
Total non-interest expense includes
$11.2 million, $19.6 million,$357.9
million, $4.6 million and $18.5 million of non-operating expenses
for the three months ended
June 30, 2021, March 31, 2021, December
31, 2020, September 30, 2020 and June 30, 2020, respectively.
See Non-GAAP
Financial Measures and Reconciliation to
GAAP.
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
(in millions, except
per common share data)
|
2021
|
|
2020
|
Interest and
dividend income:
|
|
|
|
Commercial and
industrial
|
$
224.0
|
|
$
218.8
|
Commercial
real estate
|
200.4
|
|
272.0
|
Equipment
financing
|
125.3
|
|
135.8
|
Residential
mortgage
|
134.3
|
|
175.2
|
Home equity
and other consumer
|
32.7
|
|
48.1
|
Total interest on loans
|
716.7
|
|
849.9
|
Securities
|
103.8
|
|
101.0
|
Short-term
investments
|
2.5
|
|
2.2
|
Loans
held-for-sale
|
0.3
|
|
3.6
|
Total interest and dividend income
|
823.3
|
|
956.7
|
Interest
expense:
|
|
|
|
Deposits
|
39.8
|
|
120.6
|
Borrowings
|
2.3
|
|
17.4
|
Notes and
debentures
|
14.4
|
|
17.1
|
Total interest expense
|
56.5
|
|
155.1
|
Net interest income
|
766.8
|
|
801.6
|
Provision for credit
losses on loans
|
(54.3)
|
|
114.3
|
Provision for credit
losses on securities
|
(0.1)
|
|
-
|
Net interest income after provision for credit losses
|
821.2
|
|
687.3
|
Non-interest
income:
|
|
|
|
Bank service
charges
|
48.4
|
|
48.3
|
Investment
management fees
|
41.4
|
|
35.5
|
Commercial
banking lending fees
|
27.7
|
|
22.7
|
Operating
lease income
|
22.5
|
|
24.4
|
Cash
management fees
|
18.8
|
|
15.5
|
Customer
interest rate swap income, net
|
2.5
|
|
11.5
|
Other
non-interest income
|
32.3
|
|
55.5
|
Total non-interest income
|
193.6
|
|
213.4
|
Non-interest
expense:
|
|
|
|
Compensation
and benefits
|
350.4
|
|
341.7
|
Occupancy and
equipment
|
99.1
|
|
99.0
|
Professional
and outside services
|
63.6
|
|
64.2
|
Amortization
of other acquisition-related intangible assets
|
19.8
|
|
20.9
|
Regulatory
assessments
|
15.9
|
|
17.4
|
Operating
lease expense
|
15.4
|
|
18.6
|
Other
non-interest expense
|
52.7
|
|
62.3
|
Total non-interest expense (1)
|
616.9
|
|
624.1
|
Income before income tax expense
|
397.9
|
|
276.6
|
Income tax
expense
|
82.6
|
|
56.3
|
Net income
|
315.3
|
|
220.3
|
Preferred stock
dividend
|
7.0
|
|
7.0
|
Net income available to common shareholders
|
$
308.3
|
|
$
213.3
|
|
|
|
|
Earnings per common
share:
|
|
|
|
Basic
|
$
0.73
|
|
$
0.50
|
Diluted
|
0.73
|
|
0.50
|
|
|
|
|
(1) Total
non-interest expense includes $30.8 million and $36.4 million of
non-operating expenses for
|
|
|
|
the six months ended June
30, 2021 and 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
June 30,
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
|
$
5,468.5
|
$
1.3
|
0.09%
|
|
$
5,000.0
|
$
1.2
|
0.10%
|
|
$
774.0
|
$
0.2
|
0.14%
|
Securities
(2)
|
10,418.3
|
57.6
|
2.21
|
|
9,560.6
|
56.7
|
2.37
|
|
8,240.4
|
54.8
|
2.66
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
13,434.9
|
101.6
|
3.02
|
|
13,281.3
|
98.8
|
2.98
|
|
14,095.2
|
122.4
|
3.48
|
Commercial and
industrial
|
13,570.0
|
110.5
|
3.26
|
|
14,319.6
|
118.4
|
3.31
|
|
13,895.6
|
114.8
|
3.30
|
Equipment
financing
|
4,933.7
|
62.5
|
5.07
|
|
4,887.7
|
62.8
|
5.13
|
|
4,933.8
|
67.6
|
5.48
|
Residential
mortgage
|
7,828.0
|
64.4
|
3.29
|
|
8,328.3
|
70.2
|
3.37
|
|
9,821.4
|
85.1
|
3.46
|
Home equity
and other consumer
|
1,916.2
|
16.2
|
3.39
|
|
2,037.1
|
16.5
|
3.23
|
|
2,407.1
|
20.1
|
3.34
|
Total loans
|
41,682.8
|
355.2
|
3.41
|
|
42,854.0
|
366.7
|
3.42
|
|
45,153.1
|
410.0
|
3.63
|
Total earning assets
|
57,569.6
|
$
414.1
|
2.88%
|
|
57,414.6
|
$ 424.6
|
2.96%
|
|
54,167.5
|
$ 465.0
|
3.43%
|
Other
assets
|
6,360.5
|
|
|
|
6,642.1
|
|
|
|
7,673.9
|
|
|
Total assets
|
$
63,930.1
|
|
|
|
$
64,056.7
|
|
|
|
$
61,841.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
16,324.6
|
$
-
|
- %
|
|
$
15,820.0
|
$
-
|
- %
|
|
$
12,852.8
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
32,088.4
|
10.1
|
0.13
|
|
31,820.1
|
12.8
|
0.16
|
|
27,402.5
|
17.0
|
0.25
|
Time
|
4,627.6
|
7.0
|
0.61
|
|
5,236.4
|
9.9
|
0.75
|
|
8,191.4
|
24.7
|
1.21
|
Total deposits
|
53,040.6
|
17.1
|
0.13
|
|
52,876.5
|
22.7
|
0.17
|
|
48,446.7
|
41.7
|
0.34
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
569.7
|
1.0
|
0.70
|
|
569.7
|
1.0
|
0.72
|
|
1,858.8
|
1.5
|
0.32
|
Customer
repurchase agreements
|
379.6
|
-
|
0.11
|
|
422.8
|
0.2
|
0.13
|
|
357.2
|
0.2
|
0.24
|
Federal funds
purchased
|
62.6
|
0.1
|
0.09
|
|
150.6
|
-
|
0.09
|
|
695.5
|
0.3
|
0.15
|
Total borrowings
|
1,011.9
|
1.1
|
0.44
|
|
1,143.1
|
1.2
|
0.42
|
|
2,911.5
|
2.0
|
0.27
|
Notes and
debentures
|
1,003.6
|
7.2
|
2.89
|
|
1,007.8
|
7.2
|
2.87
|
|
1,013.8
|
8.3
|
3.29
|
Total funding liabilities
|
55,056.1
|
$
25.4
|
0.19%
|
|
55,027.4
|
$
31.1
|
0.23%
|
|
52,372.0
|
$
52.0
|
0.40%
|
Other
liabilities
|
1,239.8
|
|
|
|
1,423.4
|
|
|
|
1,712.6
|
|
|
Total liabilities
|
56,295.9
|
|
|
|
56,450.8
|
|
|
|
54,084.6
|
|
|
Stockholders'
equity
|
7,634.2
|
|
|
|
7,605.9
|
|
|
|
7,756.8
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
63,930.1
|
|
|
|
$
64,056.7
|
|
|
|
$
61,841.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$
388.7
|
2.69%
|
|
|
$ 393.5
|
2.73%
|
|
|
$ 413.0
|
3.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.70%
|
|
|
|
2.74%
|
|
|
|
3.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $7.8 million, $7.6 million and $7.4
million for the three months ended June 30, 2021, March 31,
2021 and June 30, 2020, respectively.
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2021
|
|
|
|
June 30,
2020
|
|
Six months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
5,235.5
|
$
2.5
|
0.10%
|
|
$
531.9
|
$
2.2
|
0.84%
|
Securities
(2)
|
9,991.9
|
114.3
|
2.29
|
|
8,131.1
|
110.8
|
2.73
|
Loans:
|
|
|
|
|
|
|
|
Commercial
real estate
|
13,358.6
|
200.4
|
3.00
|
|
14,405.2
|
272.0
|
3.78
|
Commercial and
industrial
|
13,942.7
|
228.9
|
3.28
|
|
12,381.1
|
224.6
|
3.63
|
Equipment
financing
|
4,910.8
|
125.3
|
5.10
|
|
4,924.7
|
135.8
|
5.51
|
Residential
mortgage
|
8,076.8
|
134.6
|
3.33
|
|
10,028.9
|
175.6
|
3.50
|
Home equity
and other consumer
|
1,976.3
|
32.7
|
3.31
|
|
2,566.6
|
50.8
|
3.96
|
Total loans
|
42,265.2
|
721.9
|
3.42
|
|
44,306.5
|
858.8
|
3.88
|
Total earning assets
|
57,492.6
|
$
838.7
|
2.92%
|
|
52,969.5
|
$
971.8
|
3.67%
|
Other
assets
|
6,500.5
|
|
|
|
7,253.0
|
|
|
Total assets
|
$
63,993.1
|
|
|
|
$
60,222.5
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
16,073.7
|
$
-
|
- %
|
|
$
11,465.3
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
and money market
|
31,955.0
|
22.9
|
0.14
|
|
26,171.6
|
61.1
|
0.47
|
Time
|
4,930.3
|
16.9
|
0.69
|
|
8,668.0
|
59.5
|
1.37
|
Total deposits
|
52,959.0
|
39.8
|
0.15
|
|
46,304.9
|
120.6
|
0.52
|
Borrowings:
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
569.7
|
2.0
|
0.71
|
|
2,144.7
|
11.3
|
1.05
|
Customer
repurchase agreements
|
401.0
|
0.2
|
0.12
|
|
342.6
|
0.7
|
0.44
|
Federal funds
purchased
|
106.4
|
0.1
|
0.09
|
|
1,144.7
|
5.4
|
0.93
|
Total borrowings
|
1,077.1
|
2.3
|
0.43
|
|
3,632.0
|
17.4
|
0.96
|
Notes and
debentures
|
1,005.7
|
14.4
|
2.88
|
|
1,006.7
|
17.1
|
3.40
|
Total funding liabilities
|
55,041.8
|
$
56.5
|
0.21%
|
|
50,943.6
|
$
155.1
|
0.61%
|
Other
liabilities
|
1,331.1
|
|
|
|
1,498.4
|
|
|
Total liabilities
|
56,372.9
|
|
|
|
52,442.0
|
|
|
Stockholders'
equity
|
7,620.2
|
|
|
|
7,780.5
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
63,993.1
|
|
|
|
$
60,222.5
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$
782.2
|
2.71%
|
|
|
$
816.7
|
3.06%
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.72%
|
|
|
|
3.08%
|
|
|
|
|
|
|
|
|
(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 $15.4 million and $15.1 million for the
six months ended June 30, 2021 and 2020,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
96.1
|
$
|
90.2
|
$
|
60.4
|
$
|
85.3
|
$
|
73.6
|
|
Commercial and
industrial
|
|
57.0
|
|
69.2
|
|
76.4
|
|
86.7
|
|
88.8
|
|
Equipment
financing
|
|
107.2
|
|
118.1
|
|
109.3
|
|
49.0
|
|
48.6
|
|
Total Commercial
|
|
260.3
|
|
277.5
|
|
246.1
|
|
221.0
|
|
211.0
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
49.5
|
|
56.9
|
|
62.3
|
|
62.9
|
|
62.6
|
|
Home
equity
|
|
18.1
|
|
18.7
|
|
20.5
|
|
22.1
|
|
22.5
|
|
Other
consumer
|
|
0.1
|
|
0.2
|
|
0.2
|
|
0.2
|
|
0.1
|
|
Total Retail
|
|
67.7
|
|
75.8
|
|
83.0
|
|
85.2
|
|
85.2
|
|
Total non-accrual loans (1)
|
|
328.0
|
|
353.3
|
|
329.1
|
|
306.2
|
|
296.2
|
|
Real estate
owned:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
3.5
|
|
3.5
|
|
3.6
|
|
3.6
|
|
7.3
|
|
Residential
|
|
1.6
|
|
1.5
|
|
3.2
|
|
1.9
|
|
4.9
|
|
Total real estate owned
|
|
5.1
|
|
5.0
|
|
6.8
|
|
5.5
|
|
12.2
|
|
Repossessed
assets
|
|
5.6
|
|
5.4
|
|
5.7
|
|
9.7
|
|
6.2
|
|
Total non-performing assets
|
$
|
338.7
|
$
|
363.7
|
$
|
341.6
|
$
|
321.4
|
$
|
314.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans as
a percentage of total loans
|
|
0.79
|
%
|
0.83
|
%
|
0.75
|
%
|
0.68
|
%
|
0.65
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans,
real estate owned and repossessed assets
|
|
0.82
|
|
0.85
|
|
0.78
|
|
0.71
|
|
0.69
|
|
Tangible
stockholders' equity and allowance
|
|
|
|
|
|
|
|
|
|
|
|
for credit losses
|
|
6.43
|
|
7.05
|
|
6.59
|
|
6.41
|
|
6.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $1.2 million at June 30, 2021, $2.5
million at March 31, 2021,
$2.5 million at December 31, 2020,
$2.4 million at September 30, 2020 and $2.9 million at June 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept 30,
|
|
June 30,
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
Allowance for credit
losses on loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
399.1
|
$
|
425.1
|
$
|
423.8
|
$
|
414.0
|
$
|
341.7
|
|
Charge-offs
|
|
(13.9)
|
|
(17.8)
|
|
(16.7)
|
|
(19.3)
|
|
(10.3)
|
|
Recoveries
|
|
3.6
|
|
5.4
|
|
3.3
|
|
2.0
|
|
1.8
|
|
Net loan charge-offs
|
|
(10.3)
|
|
(12.4)
|
|
(13.4)
|
|
(17.3)
|
|
(8.5)
|
|
Provision for
credit losses on loans
|
|
(40.7)
|
|
(13.6)
|
|
14.7
|
|
27.1
|
|
80.8
|
|
Balance at end of period
|
$
|
348.1
|
$
|
399.1
|
$
|
425.1
|
$
|
423.8
|
$
|
414.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.84
|
%
|
0.93
|
%
|
0.97
|
%
|
0.94
|
%
|
0.91
|
%
|
Non-accrual loans
|
|
106.1
|
|
113.0
|
|
129.1
|
|
138.4
|
|
139.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
0.8
|
$
|
5.8
|
$
|
0.1
|
$
|
4.1
|
$
|
1.8
|
|
Commercial and
industrial
|
|
3.0
|
|
(0.5)
|
|
6.6
|
|
6.9
|
|
-
|
|
Equipment
financing
|
|
6.9
|
|
7.2
|
|
6.8
|
|
6.2
|
|
5.2
|
|
Total
|
|
10.7
|
|
12.5
|
|
13.5
|
|
17.2
|
|
7.0
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
(0.4)
|
|
(0.3)
|
|
(0.3)
|
|
(0.2)
|
|
-
|
|
Home
equity
|
|
(0.2)
|
|
(0.2)
|
|
-
|
|
-
|
|
0.6
|
|
Other
consumer
|
|
0.2
|
|
0.4
|
|
0.2
|
|
0.3
|
|
0.9
|
|
Total
|
|
(0.4)
|
|
(0.1)
|
|
(0.1)
|
|
0.1
|
|
1.5
|
|
Total net loan charge-offs
|
$
|
10.3
|
$
|
12.4
|
$
|
13.4
|
$
|
17.3
|
$
|
8.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.10
|
%
|
0.12
|
%
|
0.12
|
%
|
0.15
|
%
|
0.08
|
%
|
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
|
|
Six Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
Total non-interest
expense
|
|
$
305.0
|
|
$
311.9
|
|
$
646.4
|
|
$
293.6
|
|
$
304.0
|
|
$
616.9
|
|
$
624.1
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(9.2)
|
|
(7.5)
|
|
(4.9)
|
|
(4.6)
|
|
(18.5)
|
|
(16.7)
|
|
(36.4)
|
Stop &
Shop contract termination costs
|
|
(2.0)
|
|
(12.1)
|
|
-
|
|
-
|
|
-
|
|
(14.1)
|
|
-
|
Goodwill
impairment charge
|
|
-
|
|
-
|
|
(353.0)
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
|
|
(11.2)
|
|
(19.6)
|
|
(357.9)
|
|
(4.6)
|
|
(18.5)
|
|
(30.8)
|
|
(36.4)
|
Operating non-interest expense
|
|
293.8
|
|
292.3
|
|
288.5
|
|
289.0
|
|
285.5
|
|
586.1
|
|
587.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of other acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(8.8)
|
|
(11.0)
|
|
(9.7)
|
|
(10.2)
|
|
(10.2)
|
|
(19.8)
|
|
(20.9)
|
Operating
lease expense
|
|
(7.6)
|
|
(7.8)
|
|
(8.5)
|
|
(9.3)
|
|
(8.8)
|
|
(15.4)
|
|
(18.6)
|
Other
(1)
|
|
(1.3)
|
|
(1.7)
|
|
(1.3)
|
|
(5.1)
|
|
(1.9)
|
|
(3.0)
|
|
(3.8)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
276.1
|
|
$
271.8
|
|
$
269.0
|
|
$
264.4
|
|
$
264.6
|
|
$
547.9
|
|
$
544.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
388.7
|
|
$
393.5
|
|
$
390.2
|
|
$
398.7
|
|
$
413.0
|
|
$
782.2
|
|
$
816.7
|
Total non-interest
income
|
|
99.0
|
|
94.6
|
|
178.2
|
|
101.1
|
|
89.6
|
|
193.6
|
|
213.4
|
Total revenues
|
|
487.7
|
|
488.1
|
|
568.4
|
|
499.8
|
|
502.6
|
|
975.8
|
|
1,030.1
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(7.6)
|
|
(7.8)
|
|
(8.5)
|
|
(9.3)
|
|
(8.8)
|
|
(15.4)
|
|
(18.6)
|
BOLI FTE
adjustment
|
|
0.7
|
|
0.6
|
|
0.9
|
|
0.8
|
|
1.0
|
|
1.3
|
|
1.8
|
Gain on sale
of business, net of expenses
|
|
-
|
|
-
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
|
-
|
Other
(2)
|
|
-
|
|
(1.1)
|
|
-
|
|
(0.1)
|
|
-
|
|
(1.1)
|
|
(0.3)
|
Total revenues for efficiency ratio
|
|
$
480.8
|
|
$
479.8
|
|
$
484.9
|
|
$
491.2
|
|
$
494.8
|
|
$
960.6
|
|
$
1,013.0
|
Efficiency ratio
|
|
57.4%
|
|
56.6%
|
|
55.5%
|
|
53.8%
|
|
53.5%
|
|
57.0%
|
|
53.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Six Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
(in
millions)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
Net interest
income
|
|
$
380.9
|
|
$
385.9
|
|
$
382.8
|
|
$
391.4
|
|
$
405.6
|
|
$
766.8
|
|
$
801.6
|
Non-interest
income
|
|
99.0
|
|
94.6
|
|
178.2
|
|
101.1
|
|
89.6
|
|
193.6
|
|
213.4
|
Non-interest
expense
|
|
(305.0)
|
|
(311.9)
|
|
(646.4)
|
|
(293.6)
|
|
(304.0)
|
|
(616.9)
|
|
(624.1)
|
Pre-provision net revenue
|
|
174.9
|
|
168.6
|
|
(85.4)
|
|
198.9
|
|
191.2
|
|
343.5
|
|
390.9
|
Non-operating
income
|
|
-
|
|
-
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
|
-
|
Non-operating
expense
|
|
11.2
|
|
19.6
|
|
357.9
|
|
4.6
|
|
18.5
|
|
30.8
|
|
36.4
|
Operating pre-provision net revenue
|
|
$
186.1
|
|
$
188.2
|
|
$
196.6
|
|
$
203.5
|
|
$
209.7
|
|
$
374.3
|
|
$
427.3
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
(dollars in millions,
except per common share data)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2021 (1)
|
|
2020
|
Net income (loss)
available to common shareholders
|
|
$
167.3
|
|
$
141.0
|
|
$ (148.8)
|
|
$
141.1
|
|
$
86.4
|
|
$
308.3
|
|
$
213.3
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
9.2
|
|
7.5
|
|
4.9
|
|
4.6
|
|
18.5
|
|
16.7
|
|
36.4
|
Stop &
Shop contract termination costs
|
|
2.0
|
|
12.1
|
|
-
|
|
-
|
|
-
|
|
14.1
|
|
-
|
Goodwill
impairment charge (2)
|
|
-
|
|
-
|
|
353.0
|
|
-
|
|
-
|
|
-
|
|
-
|
Gain on sale
of business, net of expenses
|
|
-
|
|
-
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
11.2
|
|
19.6
|
|
282.0
|
|
4.6
|
|
18.5
|
|
30.8
|
|
36.4
|
Tax effect
(2)
|
|
(2.4)
|
|
(4.1)
|
|
14.5
|
|
(1.0)
|
|
(3.9)
|
|
(6.5)
|
|
(7.7)
|
Total adjustments, net of tax
|
|
8.8
|
|
15.5
|
|
296.5
|
|
3.6
|
|
14.6
|
|
24.3
|
|
28.7
|
Operating earnings
|
|
$
176.1
|
|
$
156.5
|
|
$
147.7
|
|
$
144.7
|
|
$
101.0
|
|
$
332.6
|
|
$
242.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.39
|
|
$
0.33
|
|
$
(0.35)
|
|
$
0.34
|
|
$
0.21
|
|
$
0.73
|
|
$
0.50
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.02
|
|
0.02
|
|
0.01
|
|
-
|
|
0.03
|
|
0.04
|
|
0.07
|
Stop &
Shop contract termination costs
|
|
-
|
|
0.02
|
|
-
|
|
-
|
|
-
|
|
0.02
|
|
-
|
Goodwill
impairment charge (2)
|
|
-
|
|
-
|
|
0.83
|
|
-
|
|
-
|
|
-
|
|
-
|
Gain on sale
of business, net of expenses
|
|
-
|
|
-
|
|
(0.14)
|
|
-
|
|
-
|
|
-
|
|
-
|
Total adjustments per common share
|
|
0.02
|
|
0.04
|
|
0.70
|
|
-
|
|
0.03
|
|
0.06
|
|
0.07
|
Operating EPS
|
|
$
0.41
|
|
$
0.37
|
|
$
0.35
|
|
$
0.34
|
|
$
0.24
|
|
$
0.79
|
|
$
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$
63,930
|
|
$
64,057
|
|
$ 62,396
|
|
$ 61,293
|
|
$ 61,841
|
|
$ 63,993
|
|
$ 60,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
1.10%
|
|
0.98%
|
|
0.95%
|
|
0.94%
|
|
0.65%
|
|
1.04%
|
|
0.80%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The sum of the
quarterly amounts for certain line items may not equal the six
months amounts due to rounding.
|
|
|
|
|
|
|
(2) 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
|
|
Six Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
Operating
earnings
|
|
$
176.1
|
|
$
156.5
|
|
$
147.7
|
|
$
144.7
|
|
$
101.0
|
|
$
332.6
|
|
$
242.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
7,634
|
|
$
7,606
|
|
$
7,884
|
|
$
7,801
|
|
$
7,757
|
|
$
7,620
|
|
$
7,781
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
7,390
|
|
7,362
|
|
7,640
|
|
7,557
|
|
7,513
|
|
7,376
|
|
7,537
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,831
|
|
2,842
|
|
3,213
|
|
3,249
|
|
3,259
|
|
2,836
|
|
3,264
|
Average tangible
common equity
|
|
$
4,559
|
|
$
4,520
|
|
$
4,427
|
|
$
4,308
|
|
$
4,254
|
|
$
4,540
|
|
$
4,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
15.4%
|
|
13.8%
|
|
13.3%
|
|
13.4%
|
|
9.5%
|
|
14.7%
|
|
11.3%
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
Common dividends
paid
|
|
$
77.3
|
|
$
75.7
|
|
$
75.6
|
|
$
75.7
|
|
$
75.5
|
|
$
153.0
|
|
$
152.8
|
Operating
earnings
|
|
$
176.1
|
|
$
156.5
|
|
$
147.7
|
|
$
144.7
|
|
$
101.0
|
|
$
332.6
|
|
$
242.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
43.9%
|
|
48.4%
|
|
51.2%
|
|
52.3%
|
|
74.8%
|
|
46.0%
|
|
63.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
|
|
|
Total stockholders'
equity
|
|
$
7,750
|
|
$
7,592
|
|
$
7,603
|
|
$
7,831
|
|
$
7,763
|
|
|
|
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
|
|
|
Common
equity
|
|
7,506
|
|
7,348
|
|
7,359
|
|
7,587
|
|
7,519
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,826
|
|
2,835
|
|
2,846
|
|
3,244
|
|
3,254
|
|
|
|
|
Tangible common
equity
|
|
$
4,680
|
|
$
4,513
|
|
$
4,513
|
|
$
4,343
|
|
$
4,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
63,341
|
|
$
64,172
|
|
$ 63,092
|
|
$ 60,871
|
|
$ 61,510
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,826
|
|
2,835
|
|
2,846
|
|
3,244
|
|
3,254
|
|
|
|
|
Tangible
assets
|
|
$
60,515
|
|
$
61,337
|
|
$ 60,246
|
|
$ 57,627
|
|
$ 58,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.7%
|
|
7.4%
|
|
7.5%
|
|
7.5%
|
|
7.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
|
|
(in millions, except
per common share data)
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
|
|
|
Tangible common
equity
|
|
$
4,680
|
|
$
4,513
|
|
$
4,513
|
|
$
4,343
|
|
$
4,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
536.75
|
|
536.20
|
|
533.68
|
|
533.67
|
|
533.59
|
|
|
|
|
Less: Shares
classified as treasury shares
|
|
108.98
|
|
108.98
|
|
109.00
|
|
109.00
|
|
109.00
|
|
|
|
|
Common shares
outstanding
|
|
427.77
|
|
427.22
|
|
424.68
|
|
424.67
|
|
424.59
|
|
|
|
|
Less: Unallocated
ESOP shares
|
|
5.40
|
|
5.49
|
|
5.57
|
|
5.66
|
|
5.75
|
|
|
|
|
Common
shares
|
|
422.37
|
|
421.73
|
|
419.11
|
|
419.01
|
|
418.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
11.08
|
|
$
10.70
|
|
$
10.77
|
|
$
10.18
|
|
$
10.07
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/peoples-united-financial-reports-second-quarter-net-income-of-170-8-million-or-0-39-per-common-share-301335161.html
SOURCE People's United Financial