BRIDGEPORT, Conn.,
Oct. 21, 2021 /PRNewswire/
-- People's United Financial, Inc. (NASDAQ: PBCT) today
reported results for the third quarter of 2021. These results along
with comparison periods are summarized below:
`
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($ in millions,
except per common share data)
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Three Months
Ended
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Sep. 30,
2021
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Jun. 30,
2021
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Sep. 30,
2020
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|
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Net income
|
|
$
139.7
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$
170.8
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$
144.6
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Net income
available
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136.2
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167.3
|
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141.1
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to common
shareholders
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Per common
share
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0.32
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0.39
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0.34
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Operating
earnings1
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141.1
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176.1
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144.7
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Per common
share
|
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0.33
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0.41
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0.34
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Net interest
income
|
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$
370.3
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$
380.9
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$
391.4
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Net interest
margin
|
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2.64%
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2.70%
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2.97%
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Non-interest
income
|
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100.4
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99.0
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101.1
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Non-interest
expense
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$
289.2
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$
305.0
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$
293.6
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Operating
non-interest expense1
|
282.9
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293.8
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289.0
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Efficiency
ratio
|
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56.8%
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57.4%
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53.8%
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Average
balances
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Loans
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$
39,934
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$
41,683
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$
44,853
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Deposits
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52,822
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53,041
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49,542
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Period-end
balances
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Loans
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39,526
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41,366
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45,231
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Deposits
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52,871
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52,581
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49,637
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1 See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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"We are pleased with our third quarter performance,
particularly given the low interest rate environment," said
Jack Barnes, Chairman and Chief
Executive Officer. "Our focus remains on completing the merger with
M&T, which will bring together two high-performing and
well-respected institutions. While the combined bank will have
significant size and scale to offer customers greater branch
access, more innovative solutions, and enhanced digital
capabilities, the Company will remain true to its collective roots
of delivering superior service at the local level and providing
steadfast community support. As we have worked closely with our
M&T partners on integration, we have developed an even greater
appreciation for the similarity of the cultures and philosophies
between the two banks. As such, a seamless transition is expected
for our clients and colleagues once the transaction is closed.
Finally, I want to express my sincere gratitude to all our
employees for their efforts and dedication as we move towards
People's United's next chapter and further build upon its storied
legacy."
"The third quarter financial results reflect the
consistent core earnings power of the franchise and were
highlighted by continued excellent asset quality, well-controlled
expenses, strong non-interest income, and a lower effective tax
rate," stated David Rosato, Senior
Executive Vice President and Chief Financial Officer. "Operating
earnings of $141 million were down
$35 million linked-quarter driven by
a change of $42 million after-tax in
the provision for credit losses. Pre-provision net revenue
increased four percent linked-quarter, or one percent on an
operating basis. Net interest margin of 2.64 percent was six basis
points lower than the second quarter mostly due to increased excess
liquidity. Conversely, the margin benefited from continued stable
loan yields and a further reduction in deposit costs."
Rosato continued, "The loan-to-deposit ratio concluded the
quarter at 75 percent as the total loan portfolio decreased
$1.8 billion or four percent from
June 30, while deposits grew
$290 million or one percent. Loan
growth continued to experience headwinds during the quarter as
period-end loans, excluding forgiveness of PPP balances, declined
approximately $1.1 billion, primarily
due to lower commercial real estate and retail balances of
$581 million and $450 million, respectively, as well as a
$200 million reduction in the
mortgage warehouse portfolio. These decreases were partially offset
by solid results in LEAF and asset-based lending. Growth in
period-end deposits was largely attributable to higher balances
within our municipal and mortgage warehouse businesses. Finally,
capital ratios remain strong and improved linked-quarter for both
the Bank and Holding Company."
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As of and for
the Three Months Ended
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Sep. 30,
2021
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Jun. 30,
2021
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Sep. 30,
2020
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Asset
Quality
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Net loan
charge-offs
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0.08%
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0.10%
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0.15%
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to average total
loans
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Non-performing
loans
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0.81%
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0.79%
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0.68%
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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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0.87%
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1.07%
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0.94%
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Return on average
tangible common equity1
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11.6%
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14.7%
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13.1%
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Capital
Ratios
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People's United
Financial, Inc.
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Tangible common
equity / tangible assets
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7.8%
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7.7%
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7.5%
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Tier 1
leverage
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8.6%
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8.4%
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8.2%
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Common equity tier
1
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11.7%
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11.3%
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9.9%
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Tier 1
risk-based
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12.3%
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11.8%
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10.5%
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Total
risk-based
|
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13.4%
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13.1%
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11.8%
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People's United Bank,
N.A.
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Tier 1
leverage
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8.8%
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8.8%
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8.7%
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Common equity tier
1
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12.6%
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12.3%
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11.0%
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Tier 1
risk-based
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12.6%
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12.3%
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11.0%
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Total
risk-based
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13.6%
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13.5%
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12.3%
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1 See
Non-GAAP Financial Measures and Reconciliation to GAAP.
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The Board of Directors declared a $0.1825 per common share quarterly dividend
payable November 15, 2021, to
shareholders of record on November 1,
2021. Based on the closing stock price on October 20, 2021, the dividend yield on People's
United Financial common stock is 3.9 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
$63.5 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.
3Q 2021 Financial Highlights
Summary
- Net income totaled $139.7
million, or $0.32 per common
share.
-
- Net income available to common shareholders totaled
$136.2 million.
- Operating earnings totaled $141.1
million, or $0.33 per common
share (see Non-GAAP Financial Measures and Reconciliation to
GAAP).
- Net interest income totaled $370.3
million in 3Q21 compared to $380.9
million in 2Q21.
-
- Includes $23.1 million
associated with PPP loans in 3Q21 ($20.3
million in net fees and $2.8
million in net interest income).
- Net interest margin decreased six basis points from 2Q21
to 2.64% reflecting:
-
- One additional calendar day in 3Q21 (increase of two
basis points).
- Lower rates on deposits (increase of one basis
point).
- Lower yields on the securities portfolio (decrease of
five basis points).
- Lower yields on the loan portfolio (decrease of four
basis points).
- Excess liquidity resulting from deposits at the Federal
Reserve Bank had a seven basis point negative impact on the net
interest margin in 3Q21.
- PPP loans had a ten basis point favorable impact on the
net interest margin in 3Q21.
- Provision for credit losses on loans totaled $12.0 million.
-
- Allowance for credit losses on loans increased
$4.3 million.
- Net loan charge-offs totaled $7.7
million.
- Net loan charge-off ratio of 0.08%.
- Non-interest income totaled $100.4
million in 3Q21 compared to $99.0
million in 2Q21.
-
- Bank service charges increased $1.0 million.
- Commercial banking lending fees decreased $2.3 million.
- Customer interest rate swap income decreased $0.6 million.
- Other non-interest income in 3Q21 includes $3.9 million of net gains on building
sales.
- At September 30, 2021,
assets under discretionary management totaled $10.1 billion.
- Non-interest expense totaled $289.2 million in 3Q21 compared to $305.0 million in 2Q21.
-
- Operating non-interest expense totaled $282.9 million in 3Q21 and $293.8 million in 2Q21 (see Non-GAAP Financial
Measures and Reconciliation to GAAP).
- Compensation and benefits expense decreased $9.9 million, primarily reflecting higher
incentive-related accruals in 2Q21.
- Regulatory assessments expense decreased $1.2 million.
- Professional and outside services expense, excluding
$4.1 million and $6.0 million of non-operating expenses in 3Q21
and 2Q21, respectively, decreased $0.5
million.
- Other non-interest expense includes non-operating
expenses totaling $1.6 million in
3Q21 and $5.0 million in
2Q21.
- The efficiency ratio was 56.8% for 3Q21 compared to 57.4%
for 2Q21 and 53.8% for 3Q20 (see Non-GAAP Financial Measures and
Reconciliation to GAAP).
- The effective income tax rate was 17.5% for 3Q21 and
19.8% for the first nine 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 $30.5
billion at September 30, 2021,
a $1.4 billion decrease from
June 30, 2021.
-
- PPP loans decreased $753
million.
- The mortgage warehouse portfolio decreased $200 million.
- The New York multifamily
portfolio decreased $46
million.
- The equipment financing portfolio increased $49 million.
- Average commercial loans totaled $30.7 billion in 3Q21, a $1.3 billion decrease from 2Q21.
-
- Average PPP loans decreased $1.0
billion.
- The average mortgage warehouse portfolio decreased
$43 million.
- The average New York
multifamily portfolio decreased $42
million.
- The average equipment financing portfolio increased
$68 million.
- Commercial deposits totaled $25.9
billion at September 30, 2021
compared to $24.9 billion at
June 30, 2021.
- The ratio of non-accrual commercial loans to total
commercial loans was 0.84% at September 30,
2021 compared to 0.82% at June 30,
2021.
- Non-performing commercial assets totaled $262.1 million at September 30, 2021 compared to $269.2 million at June 30,
2021.
- For the commercial loan portfolio, the allowance for
credit losses as a percentage of commercial loans was 0.75% at
September 30, 2021 compared to 0.76%
at June 30, 2021.
- The commercial allowance for credit losses represented
90% of non-accrual commercial loans at September 30, 2021 compared to 93% at
June 30, 2021.
Retail Banking
- Residential mortgage loans totaled $7.3 billion at September
30, 2021, a $356 million
decrease from June 30,
2021.
-
- Average residential mortgage loans totaled $7.4 billion in 3Q21, a $390 million decrease from 2Q21.
- Home equity loans totaled $1.7
billion at September 30, 2021,
a $90 million decrease from
June 30, 2021.
-
- Average home equity loans totaled $1.7 billion in 3Q21, an $83 million decrease from 2Q21.
- Retail deposits totaled $27.0
billion at September 30, 2021
compared to $27.7 billion at
June 30, 2021.
- The ratio of non-accrual residential mortgage loans to
residential mortgage loans was 0.68% at September 30, 2021 compared to 0.65% at
June 30, 2021.
- The ratio of non-accrual home equity loans to home equity
loans was 0.96% at September 30, 2021
compared to 1.01% at June 30,
2021.
- For the retail loan portfolio, the allowance for credit
losses as a percentage of retail loans was 1.36% at September 30, 2021 compared to 1.13% at
June 30, 2021.
- The retail allowance for credit losses represented 187%
of non-accrual retail loans at September 30,
2021 compared to 158% at June 30,
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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FINANCIAL
HIGHLIGHTS
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As of and for the
Three Months Ended
|
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Sept. 30,
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June 30,
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March 31,
|
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Dec. 31,
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Sept. 30,
|
(dollars in millions,
except per common share data)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
Earnings
Data:
|
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|
|
|
|
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Net interest
income (fully taxable equivalent)
|
$
|
377.9
|
$
|
388.7
|
$
|
393.5
|
$
|
390.2
|
$
|
398.7
|
Net interest
income
|
|
370.3
|
|
380.9
|
|
385.9
|
|
382.8
|
|
391.4
|
Provision for
credit losses
|
|
12.1
|
|
(40.8)
|
|
(13.6)
|
|
14.7
|
|
26.8
|
Non-interest
income (1)
|
|
100.4
|
|
99.0
|
|
94.6
|
|
178.2
|
|
101.1
|
Non-interest
expense (1)
|
|
289.2
|
|
305.0
|
|
311.9
|
|
646.4
|
|
293.6
|
Income (loss)
before income tax expense
|
|
169.4
|
|
215.7
|
|
182.2
|
|
(100.1)
|
|
172.1
|
Net income
(loss)
|
|
139.7
|
|
170.8
|
|
144.5
|
|
(145.3)
|
|
144.6
|
Net income
(loss) available to common shareholders (1)
|
136.2
|
|
167.3
|
|
141.0
|
|
(148.8)
|
|
141.1
|
|
|
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|
Selected
Statistical Data:
|
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Net interest
margin (2)
|
|
2.64
|
%
|
2.70
|
%
|
2.74
|
%
|
2.84
|
%
|
2.97
|
Return on
average assets (1), (2)
|
|
0.87
|
|
1.07
|
|
0.90
|
|
(0.93)
|
|
0.94
|
Return on
average common equity (2)
|
|
7.2
|
|
9.1
|
|
7.7
|
|
(7.8)
|
|
7.5
|
Return on
average tangible common equity (1), (2)
|
|
11.6
|
|
14.7
|
|
12.5
|
|
(13.4)
|
|
13.1
|
Efficiency
ratio (1)
|
|
56.8
|
|
57.4
|
|
56.6
|
|
55.5
|
|
53.8
|
|
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Common Share
Data:
|
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Earnings
(loss) per common share:
|
|
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|
|
|
|
|
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|
Basic
|
$
|
0.32
|
$
|
0.40
|
$
|
0.34
|
$
|
(0.36)
|
$
|
0.34
|
Diluted (1)
|
|
0.32
|
|
0.39
|
|
0.33
|
|
(0.35)
|
|
0.34
|
Dividends paid
per common share
|
|
0.1825
|
|
0.1825
|
|
0.1800
|
|
0.1800
|
|
0.1800
|
Common
dividend payout ratio (1)
|
|
56.8
|
%
|
46.2
|
%
|
53.7
|
%
|
(50.8)
|
%
|
53.6
|
Book value per
common share
|
$
|
17.85
|
$
|
17.77
|
$
|
17.42
|
$
|
17.56
|
$
|
18.11
|
Tangible book
value per common share (1)
|
|
11.18
|
|
11.08
|
|
10.70
|
|
10.77
|
|
10.37
|
Stock
price:
|
|
|
|
|
|
|
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High
|
|
18.08
|
|
19.62
|
|
19.40
|
|
13.58
|
|
12.36
|
Low
|
|
15.18
|
|
16.75
|
|
12.66
|
|
9.98
|
|
9.74
|
Close
|
|
17.47
|
|
17.14
|
|
17.90
|
|
12.93
|
|
10.31
|
Common shares
outstanding (in millions) (1)
|
|
427.77
|
|
427.77
|
|
427.22
|
|
424.68
|
|
424.67
|
Weighted
average diluted common shares (in millions)
|
424.77
|
|
425.08
|
|
422.58
|
|
420.39
|
|
420.29
|
|
|
|
|
|
|
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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.
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FINANCIAL
HIGHLIGHTS
|
|
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|
As of and for
the
|
|
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|
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|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
|
(dollars in millions,
except per common share data)
|
|
2021
|
|
2020
|
|
Earnings
Data:
|
|
|
|
|
|
Net interest
income (fully taxable equivalent)
|
$
|
1,160.1
|
$
|
1,215.4
|
|
Net interest
income
|
|
1,137.1
|
|
1,193.0
|
|
Provision for
credit losses
|
|
(42.3)
|
|
141.1
|
|
Non-interest
income
|
|
294.0
|
|
314.5
|
|
Non-interest
expense (1)
|
|
906.1
|
|
917.7
|
|
Income before
income tax expense
|
|
567.3
|
|
448.7
|
|
Net
income
|
|
455.0
|
|
364.9
|
|
Net income
available to common shareholders (1)
|
|
444.5
|
|
354.4
|
|
|
|
|
|
|
|
Selected
Statistical Data:
|
|
|
|
|
|
Net interest
margin (2)
|
|
2.69
|
%
|
3.05
|
%
|
Return on
average assets (1), (2)
|
|
0.95
|
|
0.80
|
|
Return on
average common equity (2)
|
|
8.0
|
|
6.3
|
|
Return on
average tangible common equity (1), (2)
|
|
12.9
|
|
11.0
|
|
Efficiency
ratio (1)
|
|
56.9
|
|
53.8
|
|
|
|
|
|
|
|
Common Share
Data:
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
Basic
|
$
|
1.06
|
$
|
0.84
|
|
Diluted (1)
|
|
1.05
|
|
0.84
|
|
Dividends paid
per common share
|
|
0.5450
|
|
0.5375
|
|
Common
dividend payout ratio (1)
|
|
51.8
|
%
|
64.5
|
%
|
Book value per
common share
|
$
|
17.85
|
$
|
18.11
|
|
Tangible book
value per common share (1)
|
|
11.18
|
|
10.37
|
|
Stock
price:
|
|
|
|
|
|
High
|
|
19.62
|
|
17.00
|
|
Low
|
|
12.66
|
|
9.37
|
|
Close
|
|
17.47
|
|
10.31
|
|
Common shares
oustanding (in millions) (1)
|
|
427.77
|
|
424.67
|
|
Weighted
average diluted common shares (in millions)
|
|
424.21
|
|
423.28
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures and Reconciliation to GAAP.
|
|
|
|
|
|
(2)
Annualized.
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
Financial
Condition Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
63,673
|
$
|
63,341
|
$
|
64,172
|
$
|
63,092
|
$
|
60,871
|
|
Loans
|
|
39,526
|
|
41,366
|
|
42,770
|
|
43,870
|
|
45,231
|
|
Securities
|
|
10,541
|
|
10,597
|
|
10,445
|
|
9,191
|
|
8,270
|
|
Short-term investments
|
|
7,723
|
|
5,249
|
|
4,992
|
|
3,766
|
|
439
|
|
Allowance for credit losses on loans
|
|
352
|
|
348
|
|
399
|
|
425
|
|
424
|
|
Goodwill and other acquisition-related intangible assets
|
2,817
|
|
2,826
|
|
2,835
|
|
2,846
|
|
3,244
|
|
Deposits
|
|
52,871
|
|
52,581
|
|
53,475
|
|
52,138
|
|
49,637
|
|
Borrowings
|
|
977
|
|
952
|
|
1,156
|
|
1,148
|
|
1,237
|
|
Notes and debentures
|
|
999
|
|
1,002
|
|
1,003
|
|
1,010
|
|
1,012
|
|
Stockholders' equity
|
|
7,783
|
|
7,750
|
|
7,592
|
|
7,603
|
|
7,831
|
|
Total risk-weighted assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
42,711
|
|
43,654
|
|
43,833
|
|
45,075
|
|
45,756
|
|
People's United
Bank, N.A.
|
|
42,706
|
|
43,623
|
|
43,812
|
|
45,016
|
|
45,685
|
|
Non-accrual loans
|
|
321
|
|
328
|
|
353
|
|
329
|
|
306
|
|
Net loan charge-offs
|
|
7.7
|
|
10.3
|
|
12.4
|
|
13.4
|
|
17.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
39,934
|
$
|
41,683
|
$
|
42,854
|
$
|
44,061
|
$
|
44,853
|
|
Securities (2)
|
|
10,432
|
|
10,418
|
|
9,561
|
|
8,390
|
|
7,922
|
|
Short-term investments
|
|
6,999
|
|
5,469
|
|
5,000
|
|
2,582
|
|
842
|
|
Total earning assets
|
|
57,365
|
|
57,570
|
|
57,415
|
|
55,034
|
|
53,617
|
|
Total assets
|
|
63,876
|
|
63,930
|
|
64,057
|
|
62,396
|
|
61,293
|
|
Deposits
|
|
52,822
|
|
53,041
|
|
52,876
|
|
50,674
|
|
49,542
|
|
Borrowings
|
|
940
|
|
1,012
|
|
1,143
|
|
1,233
|
|
1,283
|
|
Notes and debentures
|
|
1,002
|
|
1,003
|
|
1,008
|
|
1,011
|
|
1,014
|
|
Total funding liabilities
|
|
54,764
|
|
55,056
|
|
55,027
|
|
52,918
|
|
51,839
|
|
Stockholders' equity
|
|
7,779
|
|
7,634
|
|
7,606
|
|
7,884
|
|
7,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average total loans (annualized)
|
0.08
|
%
|
0.10
|
%
|
0.12
|
%
|
0.12
|
%
|
0.15
|
%
|
Non-performing assets to total loans, real estate owned
|
|
|
|
|
|
|
|
|
|
|
and repossessed
assets
|
|
0.83
|
|
0.82
|
|
0.85
|
|
0.78
|
|
0.71
|
|
Allowance for credit losses on loans to:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.89
|
|
0.84
|
|
0.93
|
|
0.97
|
|
0.94
|
|
Non-accrual
loans
|
|
109.9
|
|
106.1
|
|
113.0
|
|
129.1
|
|
138.4
|
|
Average stockholders' equity to average total assets
|
|
12.9
|
|
11.9
|
|
11.9
|
|
12.6
|
|
12.7
|
|
Stockholders' equity to total assets
|
|
12.2
|
|
12.2
|
|
11.8
|
|
12.1
|
|
12.9
|
|
Tangible common equity to tangible assets (3)
|
|
7.8
|
|
7.7
|
|
7.4
|
|
7.5
|
|
7.5
|
|
Total risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
13.4
|
|
13.1
|
|
12.9
|
|
12.4
|
|
11.8
|
|
People's United
Bank, N.A.
|
|
13.6
|
|
13.5
|
|
13.5
|
|
12.8
|
|
12.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) September 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
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
June 30,
|
Dec. 31,
|
Sept. 30,
|
(in
millions)
|
2021
|
2021
|
2020
|
2020
|
Assets
|
|
|
|
|
Cash and due from
banks
|
$
410.6
|
$
516.3
|
$
477.3
|
$
616.8
|
Short-term
investments
|
7,723.0
|
5,249.4
|
3,766.0
|
438.6
|
Securities:
|
|
|
|
|
Debt
securities available-for-sale, at fair value
|
6,257.0
|
6,328.6
|
4,925.5
|
4,080.7
|
Debt
securities held-to-maturity, at amortized cost
|
3,929.8
|
4,003.1
|
3,993.8
|
3,916.5
|
Federal
Reserve Bank and Federal Home Loan Bank stock, at cost
|
264.7
|
264.9
|
266.6
|
267.1
|
Equity
securities, at fair value
|
-
|
-
|
5.3
|
5.6
|
Total securities
|
10,451.5
|
10,596.6
|
9,191.2
|
8,269.9
|
Loans
held-for-sale
|
9.8
|
5.4
|
26.5
|
21.4
|
Loans:
|
|
|
|
|
Commercial and
industrial (1)
|
12,769.0
|
13,627.4
|
14,982.3
|
15,295.0
|
Commercial
real estate (1)
|
12,662.6
|
13,243.2
|
13,336.9
|
13,713.3
|
Equipment
financing
|
5,040.3
|
4,990.9
|
4,930.0
|
4,887.6
|
Total Commercial Portfolio
|
30,471.9
|
31,861.5
|
33,249.2
|
33,895.9
|
Residential
mortgage
|
7,269.8
|
7,626.2
|
8,518.9
|
9,095.6
|
Home equity
and other consumer
|
1,784.1
|
1,877.9
|
2,101.4
|
2,239.1
|
Total Retail Portfolio
|
9,053.9
|
9,504.1
|
10,620.3
|
11,334.7
|
Total loans
|
39,525.8
|
41,365.6
|
43,869.5
|
45,230.6
|
Less allowance
for credit losses on loans
|
(352.4)
|
(348.1)
|
(425.1)
|
(423.8)
|
Total loans, net
|
39,173.4
|
41,017.5
|
43,444.4
|
44,806.8
|
Goodwill and other
acquisition-related intangible assets
|
2,816.9
|
2,825.8
|
2,845.9
|
3,243.5
|
Bank-owned life
insurance
|
716.5
|
713.7
|
711.6
|
710.5
|
Premises and
equipment, net
|
249.9
|
261.8
|
276.7
|
281.3
|
Other
assets
|
2,121.0
|
2,154.2
|
2,352.2
|
2,482.4
|
Total assets
|
$
63,672.6
|
$
63,340.7
|
$
63,091.8
|
$
60,871.2
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest-bearing
|
$
16,334.6
|
$
16,722.8
|
$
15,881.7
|
$
14,101.9
|
Savings
|
6,685.4
|
6,710.2
|
6,029.7
|
5,846.3
|
Interest-bearing checking and money market
|
25,614.7
|
24,705.9
|
24,567.5
|
23,361.8
|
Time
|
4,236.6
|
4,442.3
|
5,658.8
|
6,326.5
|
Total deposits
|
52,871.3
|
52,581.2
|
52,137.7
|
49,636.5
|
Borrowings:
|
|
|
|
|
Federal Home
Loan Bank advances
|
569.6
|
569.7
|
569.7
|
579.8
|
Customer
repurchase agreements
|
407.8
|
382.5
|
452.9
|
432.5
|
Federal funds
purchased
|
-
|
-
|
125.0
|
225.0
|
Total borrowings
|
977.4
|
952.2
|
1,147.6
|
1,237.3
|
Notes and
debentures
|
999.4
|
1,001.6
|
1,009.6
|
1,012.0
|
Other
liabilities
|
1,041.5
|
1,056.1
|
1,194.1
|
1,153.9
|
Total liabilities
|
55,889.6
|
55,591.1
|
55,489.0
|
53,039.7
|
|
|
|
|
|
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
|
7,714.9
|
7,709.4
|
7,663.6
|
7,657.3
|
Retained
earnings
|
1,574.7
|
1,516.5
|
1,363.6
|
1,589.1
|
Unallocated common
stock of ESOP, at cost
|
(110.2)
|
(112.0)
|
(115.6)
|
(117.4)
|
Accumulated other
comprehensive loss
|
(176.9)
|
(144.8)
|
(89.2)
|
(77.9)
|
Treasury stock, at
cost
|
(1,469.0)
|
(1,469.0)
|
(1,469.0)
|
(1,469.0)
|
Total stockholders' equity
|
7,783.0
|
7,749.6
|
7,602.8
|
7,831.5
|
Total liabilities and stockholders' equity
|
$
63,672.6
|
$
63,340.7
|
$
63,091.8
|
$
60,871.2
|
|
|
|
|
|
|
(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
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
(in millions, except
per common share data)
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
104.3
|
|
$
107.9
|
|
$
116.1
|
|
$
111.3
|
|
$
110.7
|
Commercial
real estate
|
96.5
|
|
101.6
|
|
98.8
|
|
106.1
|
|
110.5
|
Equipment
financing
|
62.3
|
|
62.5
|
|
62.8
|
|
62.1
|
|
65.4
|
Residential
mortgage
|
58.8
|
|
64.4
|
|
69.9
|
|
74.9
|
|
82.1
|
Home equity
and other consumer
|
15.2
|
|
16.2
|
|
16.5
|
|
18.7
|
|
19.9
|
Total interest on loans
|
337.1
|
|
352.6
|
|
364.1
|
|
373.1
|
|
388.6
|
Securities
|
53.8
|
|
52.4
|
|
51.4
|
|
47.2
|
|
47.5
|
Short-term
investments
|
2.8
|
|
1.3
|
|
1.2
|
|
0.8
|
|
0.4
|
Loans
held-for-sale
|
0.1
|
|
-
|
|
0.3
|
|
0.4
|
|
0.3
|
Total interest and dividend income
|
393.8
|
|
406.3
|
|
417.0
|
|
421.5
|
|
436.8
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
15.1
|
|
17.1
|
|
22.7
|
|
30.1
|
|
36.5
|
Borrowings
|
1.2
|
|
1.1
|
|
1.2
|
|
1.3
|
|
1.5
|
Notes and
debentures
|
7.2
|
|
7.2
|
|
7.2
|
|
7.3
|
|
7.4
|
Total interest expense
|
23.5
|
|
25.4
|
|
31.1
|
|
38.7
|
|
45.4
|
Net interest income
|
370.3
|
|
380.9
|
|
385.9
|
|
382.8
|
|
391.4
|
Provision for credit
losses on loans
|
12.0
|
|
(40.7)
|
|
(13.6)
|
|
14.7
|
|
27.1
|
Provision for credit
losses on securities
|
0.1
|
|
(0.1)
|
|
-
|
|
-
|
|
(0.3)
|
Net interest income after provision for credit losses
|
358.2
|
|
421.7
|
|
399.5
|
|
368.1
|
|
364.6
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Bank service
charges
|
25.9
|
|
24.9
|
|
23.5
|
|
24.7
|
|
24.5
|
Investment
management fees
|
21.1
|
|
21.5
|
|
19.9
|
|
18.9
|
|
18.8
|
Commercial
banking lending fees
|
11.8
|
|
14.1
|
|
13.6
|
|
15.5
|
|
12.7
|
Operating
lease income
|
10.6
|
|
11.2
|
|
11.3
|
|
12.9
|
|
12.4
|
Cash
management fees
|
9.6
|
|
9.6
|
|
9.2
|
|
9.1
|
|
8.8
|
Customer
interest rate swap income, net
|
1.8
|
|
2.4
|
|
0.1
|
|
2.2
|
|
1.2
|
Gain on sale
of business, net of expenses (1)
|
-
|
|
-
|
|
-
|
|
75.9
|
|
-
|
Other
non-interest income
|
19.6
|
|
15.3
|
|
17.0
|
|
19.0
|
|
22.7
|
Total non-interest income
|
100.4
|
|
99.0
|
|
94.6
|
|
178.2
|
|
101.1
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
167.7
|
|
177.6
|
|
172.8
|
|
166.6
|
|
166.5
|
Occupancy and
equipment
|
50.2
|
|
50.0
|
|
49.1
|
|
50.9
|
|
49.1
|
Professional
and outside services
|
27.6
|
|
30.0
|
|
33.6
|
|
24.9
|
|
24.1
|
Amortization
of other acquisition-related intangible assets
|
8.9
|
|
8.8
|
|
11.0
|
|
9.7
|
|
10.2
|
Operating
lease expense
|
7.0
|
|
7.6
|
|
7.8
|
|
8.5
|
|
9.3
|
Regulatory
assessments
|
6.6
|
|
7.8
|
|
8.1
|
|
6.9
|
|
8.4
|
Goodwill
impairment
|
-
|
|
-
|
|
-
|
|
353.0
|
|
-
|
Other
non-interest expense
|
21.2
|
|
23.2
|
|
29.5
|
|
25.9
|
|
26.0
|
Total non-interest expense (1)
|
289.2
|
|
305.0
|
|
311.9
|
|
646.4
|
|
293.6
|
Income (loss) before income tax expense
|
169.4
|
|
215.7
|
|
182.2
|
|
(100.1)
|
|
172.1
|
Income tax
expense
|
29.7
|
|
44.9
|
|
37.7
|
|
45.2
|
|
27.5
|
Net income (loss)
|
139.7
|
|
170.8
|
|
144.5
|
|
(145.3)
|
|
144.6
|
Preferred stock
dividend
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
|
3.5
|
Net income (loss) available to common shareholders
|
$
136.2
|
|
$
167.3
|
|
$
141.0
|
|
$(148.8)
|
|
$
141.1
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.32
|
|
$
0.40
|
|
$
0.34
|
|
$
(0.36)
|
|
$
0.34
|
Diluted
|
0.32
|
|
0.39
|
|
0.33
|
|
(0.35)
|
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
(1) The gain on sale
of business, net of expenses, is considered non-operating income.
Total non-interest expense includes
|
$6.3 million, $11.2 million, $19.6 million, $357.9 million and $4.6
million of non-operating expenses for the three months
ended
|
September 30, 2021, June 30,
2021, March 31, 2021, December 31, 2020 and September 30, 2020,
respectively. See Non-GAAP
|
Financial Measures and
Reconciliation to GAAP.
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Sept. 30,
|
(in millions, except
per common share data)
|
2021
|
|
2020
|
Interest and
dividend income:
|
|
|
|
Commercial and
industrial
|
$
328.3
|
|
$
382.5
|
Commercial
real estate
|
296.9
|
|
329.5
|
Equipment
financing
|
187.6
|
|
201.2
|
Residential
mortgage
|
193.1
|
|
257.3
|
Home equity
and other consumer
|
47.9
|
|
68.0
|
Total interest on loans
|
1,053.8
|
|
1,238.5
|
Securities
|
157.6
|
|
148.5
|
Short-term
investments
|
5.3
|
|
2.6
|
Loans
held-for-sale
|
0.4
|
|
3.9
|
Total interest and dividend income
|
1,217.1
|
|
1,393.5
|
Interest
expense:
|
|
|
|
Deposits
|
54.9
|
|
157.1
|
Borrowings
|
3.5
|
|
18.9
|
Notes and
debentures
|
21.6
|
|
24.5
|
Total interest expense
|
80.0
|
|
200.5
|
Net interest income
|
1,137.1
|
|
1,193.0
|
Provision for credit
losses on loans
|
(42.3)
|
|
141.4
|
Provision for credit
losses on securities
|
-
|
|
(0.3)
|
Net interest income after provision for credit losses
|
1,179.4
|
|
1,051.9
|
Non-interest
income:
|
|
|
|
Bank service
charges
|
74.3
|
|
72.8
|
Investment
management fees
|
62.5
|
|
54.3
|
Commercial
banking lending fees
|
39.5
|
|
35.4
|
Operating
lease income
|
33.1
|
|
36.8
|
Cash
management fees
|
28.4
|
|
24.3
|
Customer
interest rate swap income, net
|
4.3
|
|
12.7
|
Other
non-interest income
|
51.9
|
|
78.2
|
Total non-interest income
|
294.0
|
|
314.5
|
Non-interest
expense:
|
|
|
|
Compensation
and benefits
|
518.1
|
|
508.2
|
Occupancy and
equipment
|
149.3
|
|
148.1
|
Professional
and outside services
|
91.2
|
|
88.3
|
Amortization
of other acquisition-related intangible assets
|
28.7
|
|
31.1
|
Regulatory
assessments
|
22.5
|
|
25.8
|
Operating
lease expense
|
22.4
|
|
27.9
|
Other
non-interest expense
|
73.9
|
|
88.3
|
Total non-interest expense (1)
|
906.1
|
|
917.7
|
Income before income tax expense
|
567.3
|
|
448.7
|
Income tax
expense
|
112.3
|
|
83.8
|
Net income
|
455.0
|
|
364.9
|
Preferred stock
dividend
|
10.5
|
|
10.5
|
Net income available to common shareholders
|
$
444.5
|
|
$
354.4
|
|
|
|
|
Earnings per common
share:
|
|
|
|
Basic
|
$
1.06
|
|
$
0.84
|
Diluted
|
1.05
|
|
0.84
|
|
|
|
|
|
(1) Total
non-interest expense includes $37.1 million and $41.0 million of
non-operating expenses for
|
the nine months ended
September 30, 2021 and 2020, respectively. See Non-GAAP
Financial
|
|
Measures and Reconciliation
to GAAP beginning.
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2021
|
|
|
|
June 30,
2021
|
|
|
|
September 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
|
$
6,999.3
|
$
2.8
|
0.16%
|
|
$
5,468.5
|
$
1.3
|
0.09%
|
|
$
841.5
|
$
0.4
|
0.19%
|
Securities
(2)
|
10,432.0
|
59.1
|
2.27
|
|
10,418.3
|
57.6
|
2.21
|
|
7,922.4
|
52.5
|
2.65
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
12,906.9
|
96.5
|
2.99
|
|
13,434.9
|
101.6
|
3.02
|
|
13,853.1
|
110.5
|
3.19
|
Commercial and
industrial
|
12,759.6
|
106.6
|
3.34
|
|
13,570.0
|
110.5
|
3.26
|
|
14,419.8
|
113.0
|
3.13
|
Equipment
financing
|
5,001.7
|
62.3
|
4.99
|
|
4,933.7
|
62.5
|
5.07
|
|
4,876.4
|
65.4
|
5.37
|
Residential
mortgage
|
7,437.6
|
58.9
|
3.16
|
|
7,828.0
|
64.4
|
3.29
|
|
9,408.0
|
82.4
|
3.51
|
Home equity
and other consumer
|
1,828.2
|
15.2
|
3.32
|
|
1,916.2
|
16.2
|
3.39
|
|
2,296.0
|
19.9
|
3.47
|
Total loans
|
39,934.0
|
339.5
|
3.40
|
|
41,682.8
|
355.2
|
3.41
|
|
44,853.3
|
391.2
|
3.49
|
Total earning assets
|
57,365.3
|
$ 401.4
|
2.80%
|
|
57,569.6
|
$ 414.1
|
2.88%
|
|
53,617.2
|
$ 444.1
|
3.31%
|
Other
assets
|
6,511.1
|
|
|
|
6,360.5
|
|
|
|
7,676.2
|
|
|
Total assets
|
$
63,876.4
|
|
|
|
$
63,930.1
|
|
|
|
$
61,293.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
16,469.5
|
$
-
|
- %
|
|
$
16,324.6
|
$
-
|
- %
|
|
$
13,753.8
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
|
|
|
|
and money market
|
32,030.8
|
8.9
|
0.11
|
|
32,088.4
|
10.1
|
0.13
|
|
28,970.0
|
16.4
|
0.23
|
Time
|
4,322.2
|
6.2
|
0.57
|
|
4,627.6
|
7.0
|
0.61
|
|
6,817.8
|
20.1
|
1.18
|
Total deposits
|
52,822.5
|
15.1
|
0.11
|
|
53,040.6
|
17.1
|
0.13
|
|
49,541.6
|
36.5
|
0.29
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
569.6
|
1.1
|
0.79
|
|
569.7
|
1.0
|
0.70
|
|
640.5
|
1.3
|
0.79
|
Customer
repurchase agreements
|
370.5
|
0.1
|
0.10
|
|
379.6
|
0.1
|
0.11
|
|
382.6
|
0.2
|
0.18
|
Federal funds
purchased
|
-
|
-
|
-
|
|
62.6
|
-
|
0.09
|
|
260.1
|
-
|
0.08
|
Total borrowings
|
940.1
|
1.2
|
0.52
|
|
1,011.9
|
1.1
|
0.44
|
|
1,283.2
|
1.5
|
0.46
|
Notes and
debentures
|
1,001.7
|
7.2
|
2.85
|
|
1,003.6
|
7.2
|
2.89
|
|
1,014.0
|
7.4
|
2.92
|
Total funding liabilities
|
54,764.3
|
$
23.5
|
0.17%
|
|
55,056.1
|
$
25.4
|
0.19%
|
|
51,838.8
|
$
45.4
|
0.35%
|
Other
liabilities
|
1,332.8
|
|
|
|
1,239.8
|
|
|
|
1,653.3
|
|
|
Total liabilities
|
56,097.1
|
|
|
|
56,295.9
|
|
|
|
53,492.1
|
|
|
Stockholders'
equity
|
7,779.3
|
|
|
|
7,634.2
|
|
|
|
7,801.3
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
63,876.4
|
|
|
|
$
63,930.1
|
|
|
|
$
61,293.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$ 377.9
|
2.63%
|
|
|
$ 388.7
|
2.69%
|
|
|
$ 398.7
|
2.96%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.64%
|
|
|
|
2.70%
|
|
|
|
2.97%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, $7.8 million and $7.3
million for the three months ended
|
|
September 30, 2021,
June 30, 2021 and September 30, 2020, respectively.
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2021
|
|
|
|
September 30,
2020
|
|
Nine months
ended
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
Short-term
investments
|
$
5,829.9
|
$
5.3
|
0.12%
|
|
$
635.9
|
$
2.6
|
0.55%
|
Securities
(2)
|
10,140.2
|
173.4
|
2.28
|
|
8,061.0
|
163.3
|
2.70
|
Loans:
|
|
|
|
|
|
|
|
Commercial
real estate
|
13,206.3
|
296.9
|
3.00
|
|
14,219.8
|
382.5
|
3.59
|
Commercial and
industrial
|
13,544.0
|
335.5
|
3.30
|
|
13,065.7
|
337.6
|
3.44
|
Equipment
financing
|
4,941.5
|
187.6
|
5.06
|
|
4,908.5
|
201.2
|
5.47
|
Residential
mortgage
|
7,861.4
|
193.5
|
3.28
|
|
9,820.4
|
258.0
|
3.50
|
Home equity
and other consumer
|
1,926.4
|
47.9
|
3.31
|
|
2,475.7
|
70.7
|
3.81
|
Total loans
|
41,479.6
|
1,061.4
|
3.41
|
|
44,490.1
|
1,250.0
|
3.75
|
Total earning assets
|
57,449.7
|
$
1,240.1
|
2.88%
|
|
53,187.0
|
$
1,415.9
|
3.55%
|
Other
assets
|
6,504.1
|
|
|
|
7,395.1
|
|
|
Total assets
|
$
63,953.8
|
|
|
|
$
60,582.1
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
16,207.1
|
$
-
|
- %
|
|
$
12,233.7
|
$
-
|
- %
|
Savings,
interest-bearing checking
|
|
|
|
|
|
|
|
and money market
|
31,980.5
|
31.8
|
0.13
|
|
27,111.2
|
77.5
|
0.38
|
Time
|
4,725.4
|
23.1
|
0.65
|
|
8,046.8
|
79.6
|
1.32
|
Total deposits
|
52,913.0
|
54.9
|
0.14
|
|
47,391.7
|
157.1
|
0.44
|
Borrowings:
|
|
|
|
|
|
|
|
Federal Home
Loan Bank advances
|
569.7
|
3.1
|
0.74
|
|
1,639.6
|
12.6
|
1.02
|
Customer
repurchase agreements
|
390.8
|
0.4
|
0.11
|
|
356.0
|
0.9
|
0.35
|
Federal funds
purchased
|
70.5
|
-
|
0.09
|
|
847.7
|
5.4
|
0.85
|
Total borrowings
|
1,031.0
|
3.5
|
0.46
|
|
2,843.3
|
18.9
|
0.89
|
Notes and
debentures
|
1,004.3
|
21.6
|
2.87
|
|
1,009.1
|
24.5
|
3.24
|
Total funding liabilities
|
54,948.3
|
$
80.0
|
0.19%
|
|
51,244.1
|
$
200.5
|
0.52%
|
Other
liabilities
|
1,331.7
|
|
|
|
1,550.5
|
|
|
Total liabilities
|
56,280.0
|
|
|
|
52,794.6
|
|
|
Stockholders'
equity
|
7,673.8
|
|
|
|
7,787.5
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
63,953.8
|
|
|
|
$
60,582.1
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (3)
|
|
$
1,160.1
|
2.69%
|
|
|
$
1,215.4
|
3.03%
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.69%
|
|
|
|
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 $23.0 million and $22.4 million for the
nine months
|
ended September 30,
2021 and 2020, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
98.7
|
$
|
96.1
|
$
|
90.2
|
$
|
60.4
|
$
|
85.3
|
|
Commercial and
industrial
|
|
57.2
|
|
57.0
|
|
69.2
|
|
76.4
|
|
86.7
|
|
Equipment
financing
|
|
99.2
|
|
107.2
|
|
118.1
|
|
109.3
|
|
49.0
|
|
Total Commercial
|
|
255.1
|
|
260.3
|
|
277.5
|
|
246.1
|
|
221.0
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
49.1
|
|
49.5
|
|
56.9
|
|
62.3
|
|
62.9
|
|
Home
equity
|
|
16.3
|
|
18.1
|
|
18.7
|
|
20.5
|
|
22.1
|
|
Other
consumer
|
|
-
|
|
0.1
|
|
0.2
|
|
0.2
|
|
0.2
|
|
Total Retail
|
|
65.4
|
|
67.7
|
|
75.8
|
|
83.0
|
|
85.2
|
|
Total non-accrual loans (1)
|
|
320.5
|
|
328.0
|
|
353.3
|
|
329.1
|
|
306.2
|
|
Real estate
owned:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
1.6
|
|
1.6
|
|
1.5
|
|
3.2
|
|
1.9
|
|
Commercial
|
|
-
|
|
3.5
|
|
3.5
|
|
3.6
|
|
3.6
|
|
Total real estate owned
|
|
1.6
|
|
5.1
|
|
5.0
|
|
6.8
|
|
5.5
|
|
Repossessed
assets
|
|
7.4
|
|
5.6
|
|
5.4
|
|
5.7
|
|
9.7
|
|
Total non-performing assets
|
$
|
329.5
|
$
|
338.7
|
$
|
363.7
|
$
|
341.6
|
$
|
321.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans as
a percentage of total loans
|
|
0.81
|
%
|
0.79
|
%
|
0.83
|
%
|
0.75
|
%
|
0.68
|
%
|
Non-performing assets
as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans,
real estate owned and repossessed assets
|
0.83
|
|
0.82
|
|
0.85
|
|
0.78
|
|
0.71
|
|
Tangible
stockholders' equity and allowance
|
|
|
|
|
|
|
|
|
|
|
|
for credit losses
|
|
6.20
|
|
6.43
|
|
7.05
|
|
6.59
|
|
6.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reported net of
government guarantees totaling $1.1 million at September 30, 2021,
$1.2 million at June 30, 2021,
|
$2.5 million at March
31, 2021, $2.5 million at December 31, 2020 and $2.4 million at
September 30, 2020.
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND
ALLOWANCE FOR CREDIT LOSSES ON LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept 30,
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
Allowance for credit
losses on loans:
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
348.1
|
$
|
399.1
|
$
|
425.1
|
$
|
423.8
|
$
|
414.0
|
|
Charge-offs
|
|
(13.2)
|
|
(13.9)
|
|
(17.8)
|
|
(16.7)
|
|
(19.3)
|
|
Recoveries
|
|
5.5
|
|
3.6
|
|
5.4
|
|
3.3
|
|
2.0
|
|
Net loan charge-offs
|
|
(7.7)
|
|
(10.3)
|
|
(12.4)
|
|
(13.4)
|
|
(17.3)
|
|
Provision for
credit losses on loans
|
|
12.0
|
|
(40.7)
|
|
(13.6)
|
|
14.7
|
|
27.1
|
|
Balance at end of period
|
$
|
352.4
|
$
|
348.1
|
$
|
399.1
|
$
|
425.1
|
$
|
423.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans
|
|
|
|
|
|
|
|
|
|
|
|
as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
0.89
|
%
|
0.84
|
%
|
0.93
|
%
|
0.97
|
%
|
0.94
|
%
|
Non-accrual loans
|
|
109.9
|
|
106.1
|
|
113.0
|
|
129.1
|
|
138.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
CHARGE-OFFS (RECOVERIES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
$
|
3.7
|
$
|
0.8
|
$
|
5.8
|
$
|
0.1
|
$
|
4.1
|
|
Commercial and
industrial
|
|
0.3
|
|
3.0
|
|
(0.5)
|
|
6.6
|
|
6.9
|
|
Equipment
financing
|
|
4.2
|
|
6.9
|
|
7.2
|
|
6.8
|
|
6.2
|
|
Total
|
|
8.2
|
|
10.7
|
|
12.5
|
|
13.5
|
|
17.2
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
(0.7)
|
|
(0.4)
|
|
(0.3)
|
|
(0.3)
|
|
(0.2)
|
|
Home
equity
|
|
(0.1)
|
|
(0.2)
|
|
(0.2)
|
|
-
|
|
-
|
|
Other
consumer
|
|
0.3
|
|
0.2
|
|
0.4
|
|
0.2
|
|
0.3
|
|
Total
|
|
(0.5)
|
|
(0.4)
|
|
(0.1)
|
|
(0.1)
|
|
0.1
|
|
Total net loan charge-offs
|
$
|
7.7
|
$
|
10.3
|
$
|
12.4
|
$
|
13.4
|
$
|
17.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
average total
loans (annualized)
|
|
0.08
|
%
|
0.10
|
%
|
0.12
|
%
|
0.12
|
%
|
0.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
Total non-interest
expense
|
|
$
289.2
|
|
$
305.0
|
|
$
311.9
|
|
$
646.4
|
|
$
293.6
|
|
$
906.1
|
|
$
917.7
|
Adjustments to arrive
at operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
(4.7)
|
|
(9.2)
|
|
(7.5)
|
|
(4.9)
|
|
(4.6)
|
|
(21.4)
|
|
(41.0)
|
Stop &
Shop contract termination costs
|
|
(1.6)
|
|
(2.0)
|
|
(12.1)
|
|
-
|
|
-
|
|
(15.7)
|
|
-
|
Goodwill
impairment charge
|
|
-
|
|
-
|
|
-
|
|
(353.0)
|
|
-
|
|
-
|
|
-
|
Total
|
|
(6.3)
|
|
(11.2)
|
|
(19.6)
|
|
(357.9)
|
|
(4.6)
|
|
(37.1)
|
|
(41.0)
|
Operating non-interest expense
|
|
282.9
|
|
293.8
|
|
292.3
|
|
288.5
|
|
289.0
|
|
869.0
|
|
876.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of other acquisition-related
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets
|
|
(8.9)
|
|
(8.8)
|
|
(11.0)
|
|
(9.7)
|
|
(10.2)
|
|
(28.7)
|
|
(31.1)
|
Operating
lease expense
|
|
(7.0)
|
|
(7.6)
|
|
(7.8)
|
|
(8.5)
|
|
(9.3)
|
|
(22.4)
|
|
(27.9)
|
Other
(1)
|
|
(1.2)
|
|
(1.3)
|
|
(1.7)
|
|
(1.3)
|
|
(5.1)
|
|
(4.2)
|
|
(8.9)
|
Total non-interest expense for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio
|
|
$
265.8
|
|
$
276.1
|
|
$
271.8
|
|
$
269.0
|
|
$
264.4
|
|
$
813.7
|
|
$
808.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE basis)
|
|
$
377.9
|
|
$
388.7
|
|
$
393.5
|
|
$
390.2
|
|
$
398.7
|
|
$
1,160.1
|
|
$
1,215.4
|
Total non-interest
income
|
|
100.4
|
|
99.0
|
|
94.6
|
|
178.2
|
|
101.1
|
|
294.0
|
|
314.5
|
Total revenues
|
|
478.3
|
|
487.7
|
|
488.1
|
|
568.4
|
|
499.8
|
|
1,454.1
|
|
1,529.9
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
lease expense
|
|
(7.0)
|
|
(7.6)
|
|
(7.8)
|
|
(8.5)
|
|
(9.3)
|
|
(22.4)
|
|
(27.9)
|
BOLI FTE
adjustment
|
|
1.0
|
|
0.7
|
|
0.6
|
|
0.9
|
|
0.8
|
|
2.3
|
|
2.6
|
Gain on sale
of business, net of expenses
|
-
|
|
-
|
|
-
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
Other
(2)
|
|
(4.0)
|
|
-
|
|
(1.1)
|
|
-
|
|
(0.1)
|
|
(5.1)
|
|
(0.4)
|
Total revenues for efficiency ratio
|
|
$
468.3
|
|
$
480.8
|
|
$
479.8
|
|
$
484.9
|
|
$
491.2
|
|
$
1,428.9
|
|
$
1,504.2
|
Efficiency ratio
|
|
56.8%
|
|
57.4%
|
|
56.6%
|
|
55.5%
|
|
53.8%
|
|
56.9%
|
|
53.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Items
classified as "other" and deducted from non-interest expense for
purposes of calculating the
|
|
|
efficiency ratio
include certain franchise taxes and real estate owned
expenses.
|
|
|
|
|
|
|
(2) Items
classified as "other" and deducted from total revenues for purposes
of calculating the efficiency
|
|
|
ratio include,
as applicable, asset write-offs and gains/losses associated with
the sale of branch locations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRE-PROVISION NET
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(in
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
Net interest
income
|
|
$
370.3
|
|
$
380.9
|
|
$
385.9
|
|
$
382.8
|
|
$
391.4
|
|
$
1,137.1
|
|
$
1,193.0
|
Non-interest
income
|
|
100.4
|
|
99.0
|
|
94.6
|
|
178.2
|
|
101.1
|
|
294.0
|
|
314.5
|
Non-interest
expense
|
|
(289.2)
|
|
(305.0)
|
|
(311.9)
|
|
(646.4)
|
|
(293.6)
|
|
(906.1)
|
|
(917.7)
|
Pre-provision net revenue
|
|
181.5
|
|
174.9
|
|
168.6
|
|
(85.4)
|
|
198.9
|
|
525.0
|
|
589.8
|
Non-operating
income
|
|
-
|
|
-
|
|
-
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
Non-operating
expense
|
|
6.3
|
|
11.2
|
|
19.6
|
|
357.9
|
|
4.6
|
|
37.1
|
|
41.0
|
Operating pre-provision net revenue
|
|
$
187.8
|
|
$
186.1
|
|
$
188.2
|
|
$
196.6
|
|
$
203.5
|
|
$
562.1
|
|
$
630.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in millions,
except per common share data)
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2021 (1)
|
|
2020
|
Net income (loss)
available to common shareholders
|
$
136.2
|
|
$
167.3
|
|
$
141.0
|
|
$ (148.8)
|
|
$
141.1
|
|
$
444.5
|
|
$
354.4
|
Adjustments to arrive
at operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
4.7
|
|
9.2
|
|
7.5
|
|
4.9
|
|
4.6
|
|
21.4
|
|
41.0
|
Stop &
Shop contract termination costs
|
|
1.6
|
|
2.0
|
|
12.1
|
|
-
|
|
-
|
|
15.7
|
|
-
|
Goodwill
impairment charge (2)
|
|
-
|
|
-
|
|
-
|
|
353.0
|
|
-
|
|
-
|
|
-
|
Gain on sale
of business, net of expenses
|
|
-
|
|
-
|
|
-
|
|
(75.9)
|
|
-
|
|
-
|
|
-
|
Total pre-tax adjustments
|
|
6.3
|
|
11.2
|
|
19.6
|
|
282.0
|
|
4.6
|
|
37.1
|
|
41.0
|
Tax effect
(2)
|
|
(1.4)
|
|
(2.4)
|
|
(4.1)
|
|
14.5
|
|
(1.0)
|
|
(7.9)
|
|
(8.6)
|
Total adjustments, net of tax
|
|
4.9
|
|
8.8
|
|
15.5
|
|
296.5
|
|
3.6
|
|
29.2
|
|
32.4
|
Operating earnings
|
|
$
141.1
|
|
$
176.1
|
|
$
156.5
|
|
$
147.7
|
|
$
144.7
|
|
$
473.7
|
|
$
386.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
reported
|
|
$
0.32
|
|
$
0.39
|
|
$
0.33
|
|
$
(0.35)
|
|
$
0.34
|
|
$
1.05
|
|
$
0.84
|
Adjustments to arrive
at operating EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expenses
|
|
0.01
|
|
0.02
|
|
0.02
|
|
0.01
|
|
-
|
|
0.05
|
|
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
|
|
0.01
|
|
0.02
|
|
0.04
|
|
0.70
|
|
-
|
|
0.07
|
|
0.07
|
Operating EPS
|
|
$
0.33
|
|
$
0.41
|
|
$
0.37
|
|
$
0.35
|
|
$
0.34
|
|
$
1.12
|
|
$
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$ 63,876
|
|
$ 63,930
|
|
$ 64,057
|
|
$ 62,396
|
|
$ 61,293
|
|
$ 63,954
|
|
$ 60,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
assets (annualized)
|
|
0.88%
|
|
1.10%
|
|
0.98%
|
|
0.95%
|
|
0.94%
|
|
0.99%
|
|
0.85%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The sum of the
quarterly amounts for certain line items may not equal the nine
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
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
Operating
earnings
|
|
$
141.1
|
|
$
176.1
|
|
$
156.5
|
|
$
147.7
|
|
$
144.7
|
|
$
473.7
|
|
$
386.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity
|
|
$
7,779
|
|
$
7,634
|
|
$
7,606
|
|
$
7,884
|
|
$
7,801
|
|
$
7,674
|
|
$
7,788
|
Less: Average
preferred stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
Average common
equity
|
|
7,535
|
|
7,390
|
|
7,362
|
|
7,640
|
|
7,557
|
|
7,430
|
|
7,544
|
Less: Average
goodwill and average other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible
assets
|
|
2,822
|
|
2,831
|
|
2,842
|
|
3,213
|
|
3,249
|
|
2,831
|
|
3,259
|
Average tangible
common equity
|
|
$
4,713
|
|
$
4,559
|
|
$
4,520
|
|
$
4,427
|
|
$
4,308
|
|
$
4,599
|
|
$
4,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return
on average tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
equity (annualized)
|
|
12.0%
|
|
15.4%
|
|
13.8%
|
|
13.3%
|
|
13.4%
|
|
13.7%
|
|
12.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
People's United
Financial, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATION TO GAAP - Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COMMON
DIVIDEND PAYOUT RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
Common dividends
paid
|
|
$
77.4
|
|
$
77.3
|
|
$
75.7
|
|
$
75.6
|
|
$
75.7
|
|
$
230.4
|
|
$
228.5
|
Operating
earnings
|
|
$
141.1
|
|
$
176.1
|
|
$
156.5
|
|
$
147.7
|
|
$
144.7
|
|
$
473.7
|
|
$
386.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating common
dividend payout ratio
|
|
54.8%
|
|
43.9%
|
|
48.4%
|
|
51.2%
|
|
52.3%
|
|
48.6%
|
|
59.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY RATIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
|
|
(dollars in
millions)
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
Total stockholders'
equity
|
|
$
7,783
|
|
$
7,750
|
|
$
7,592
|
|
$
7,603
|
|
$
7,831
|
|
|
|
|
Less: Preferred
stock
|
|
244
|
|
244
|
|
244
|
|
244
|
|
244
|
|
|
|
|
Common
equity
|
|
7,539
|
|
7,506
|
|
7,348
|
|
7,359
|
|
7,587
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,817
|
|
2,826
|
|
2,835
|
|
2,846
|
|
3,244
|
|
|
|
|
Tangible common
equity
|
|
$
4,722
|
|
$
4,680
|
|
$
4,513
|
|
$
4,513
|
|
$
4,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 63,673
|
|
$ 63,341
|
|
$ 64,172
|
|
$ 63,092
|
|
$ 60,871
|
|
|
|
|
Less: Goodwill and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition-related intangible assets
|
|
2,817
|
|
2,826
|
|
2,835
|
|
2,846
|
|
3,244
|
|
|
|
|
Tangible
assets
|
|
$ 60,856
|
|
$ 60,515
|
|
$ 61,337
|
|
$ 60,246
|
|
$ 57,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio
|
|
7.8%
|
|
7.7%
|
|
7.4%
|
|
7.5%
|
|
7.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK
VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
|
|
|
(in millions, except
per common share data)
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
Tangible common
equity
|
|
$
4,722
|
|
$
4,680
|
|
$
4,513
|
|
$
4,513
|
|
$
4,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
issued
|
|
536.75
|
|
536.75
|
|
536.20
|
|
533.68
|
|
533.67
|
|
|
|
|
Less: Shares
classified as treasury shares
|
|
108.98
|
|
108.98
|
|
108.98
|
|
109.00
|
|
109.00
|
|
|
|
|
Common shares
outstanding
|
|
427.77
|
|
427.77
|
|
427.22
|
|
424.68
|
|
424.67
|
|
|
|
|
Less: Unallocated
ESOP shares
|
|
5.31
|
|
5.40
|
|
5.49
|
|
5.57
|
|
5.66
|
|
|
|
|
Common
shares
|
|
422.46
|
|
422.37
|
|
421.73
|
|
419.11
|
|
419.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per common share
|
|
$
11.18
|
|
$
11.08
|
|
$
10.70
|
|
$
10.77
|
|
$
10.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/peoples-united-financial-reports-third-quarter-net-income-of-139-7-million-or-0-32-per-common-share-301405936.html
SOURCE People's United Bank