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People's United Financial Reports Fourth Quarter Net Income of $132.9 Million, or $0.35 per Common Share

Operating Earnings of $0.36 per Common Share

- Announced the acquisition of BSB Bancorp and acquired VAR Technology Finance.

- Return on average assets of 1.11 percent and return on average tangible common equity of 14.9 percent.

- Efficiency ratio of 55.1 percent, an improvement of 160 basis points linked-quarter, reflecting continued revenue growth and well-controlled expenses.

- Net interest margin of 3.17 percent, expanded two basis points linked-quarter.

- End of period loans and deposits each increased nine percent from September 30, reflecting the First Connecticut Bancorp acquisition and organic growth.

BRIDGEPORT, Conn., Jan. 17, 2019 /PRNewswire/ -- People's United Financial, Inc. (PBCT) today reported results for the fourth quarter and full year 2018. These results along with comparison periods are summarized below:

($ in millions, except per common share data)



 Three Months Ended



Twelve Months Ended



Dec. 31, 2018


Sep. 30, 2018


Dec. 31, 2017



Dec. 31, 2018


Dec. 31, 2017













Net income


$         132.9


$         117.0


$         106.2



$         468.1


$         337.2

Net income available


129.4


113.5


102.7



454.0


323.1

to common shareholders

Per common share


0.35


0.33


0.30



1.29


0.97













Operating earnings1


134.2


113.8


104.5



461.4


345.8

Per common share


0.36


0.33


0.31



1.31


1.04

























Net interest income


$         332.6


$         306.4


$         292.3



$      1,236.0


$      1,100.5

Net interest margin


3.17%


3.15%


3.07%



3.12%


2.98%













Non-interest income


88.7


92.3


87.3



366.4


352.9

Operating non-interest income1


98.7


92.3


97.3



376.4


362.9

























Non-interest expense


$         262.7


$         241.3


$         239.7



$         996.1


$         960.3

Operating non-interest expense1


254.7


240.8


238.1



984.7


929.7













Efficiency ratio


55.1%


56.7%


56.1%



57.4%


57.7%

























Average balances












Loans


$       35,016


$       32,166


$       32,271



$       32,854


$       31,265

Deposits


35,959


33,058


32,879



33,601


31,732













End of period balances












Loans


35,241


32,199


32,575






Deposits


36,159


33,210


33,056


















1 See Non-GAAP Financial Measures and Reconciliation to GAAP.

"We are pleased with the advancements made in 2018 to further build our franchise for the long-term with investments in revenue producing initiatives and talent as well as enhancements to our digital capabilities and technology infrastructure," said Jack Barnes, Chairman and Chief Executive Officer. "While making these important strategic investments, we continued to strengthen the profitability of the Company. Full year operating earnings of $461.4 million were up 33 percent from a year ago despite loan growth headwinds. In addition, operating earnings per common share of $1.31 increased for the ninth consecutive year. We also remain focused on balancing organic growth with thoughtful M&A. The integration of First Connecticut continues to progress extremely well and we were excited to announce in November the acquisition of BSB Bancorp, which will deepen our presence in the Greater Boston area. Consistent with this strategy, we disclosed today the all-cash acquisition of VAR Technology Finance, which focuses on serving the technology sector and is ranked among the top independent, privately held equipment finance companies nationwide for new business volume. Similar to our recent equipment financing acquisitions, this transaction further deepens the Company's network of specialty finance experts and bolsters our nationwide businesses. Looking ahead to 2019, we are excited about realizing on the opportunities across our diverse portfolio of businesses, deepening customer relationships and delivering value to shareholders."

"Our fourth quarter financial performance resulted in a strong finish to the year as evidenced by another quarter of record earnings, an operating return on average tangible common equity of 15.5 percent and a 160 basis point improvement in the efficiency ratio compared to the third quarter," said David Rosato, Senior Executive Vice President and Chief Financial Officer. "Operating earnings of $134.2 million increased 18 percent linked-quarter and benefited from the First Connecticut acquisition and further net interest margin expansion. The quarter was also favorably impacted by a lower effective tax rate which reflected discrete tax benefits associated with certain tax-advantaged investments as well as a benefit realized in connection with tax reform. Excluding the addition of First Connecticut, period-end loan and deposit balances grew one percent and two percent, respectively, from September 30th. Loan growth benefited from strong production in equipment financing as well as in our healthcare and large corporate verticals. These results were partially offset by lower mortgage warehouse lending balances and continued runoff of the transactional portion of the New York multifamily portfolio."




 As of and for the Three Months Ended



Dec. 31, 2018


Sep. 30, 2018


Dec. 31, 2017








Asset Quality














Net loan charge-offs 


0.09%


0.09%


0.08%

to average total loans

Originated non-performing loans


0.55%


0.53%


0.49%

as a percentage of originated loans
















Returns














Return on average assets1


1.11%


1.06%


0.96%

Return on average tangible common equity1


14.9%


14.5%


13.8%















Capital Ratios














People's United Financial, Inc.







Tangible common equity / tangible assets


7.6%


7.6%


7.2%

Tier 1 leverage


8.7%


8.7%


8.3%

Common equity tier 1 


10.3%


10.3%


9.7%

Tier 1 risk-based


11.0%


11.1%


10.4%

Total risk-based 


12.6%


12.8%


12.2%








People's United Bank, N.A.







Tier 1 leverage


9.0%


9.2%


8.5%

Common equity tier 1 


11.4%


11.6%


10.7%

Tier 1 risk-based


11.4%


11.6%


10.7%

Total risk-based 


13.2%


13.6%


12.6%








1 See Non-GAAP Financial Measures and Reconciliation to GAAP.


The Company's Board of Directors declared a $0.1750 per common share quarterly dividend payable February 15, 2019 to shareholders of record on February 1, 2019. Based on the closing stock price on January 16, 2019, the dividend yield on People's United Financial common stock is 4.5 percent.

People's United Financial, Inc., a diversified financial services company with $48 billion in total assets, provides commercial and retail banking, as well as wealth management services through a network of over 400 branches in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine.

4Q 2018 Financial Highlights

Summary

  • Net income totaled $132.9 million, or $0.35 per common share.
  • Net interest income totaled $332.6 million in 4Q18 compared to $306.4 million in 3Q18.
  • Net interest margin increased two basis points from 3Q18 to 3.17% reflecting:
  • Provision for loan losses totaled $9.9 million.
  • Non-interest income totaled $88.7 million in 4Q18 compared to $92.3 million in 3Q18.
  • Non-interest expense totaled $262.7 million in 4Q18 compared to $241.3 million in 3Q18.
  • The effective income tax rate was 10.6% for 4Q18 and 18.8% for the full-year of 2018, compared to 27.8% for the full-year of 2017 (19.8% for 4Q17).

Commercial Banking

  • Commercial loans totaled $25.1 billion at December 31, 2018, an increase of $1.7 billion from September 30, 2018.
  • Average commercial loans totaled $24.8 billion in 4Q18, an increase of $1.5 billion from 3Q18.
  • Commercial deposits totaled $13.1 billion at December 31, 2018 compared to $11.9 billion at September 30, 2018.
  • The ratio of originated non-performing commercial loans to originated commercial loans was 0.52% at both December 31, 2018 and September 30, 2018.
  • Non-performing commercial assets, excluding acquired non-performing loans, totaled $126.1 million at December 31, 2018 compared to $122.1 million at September 30, 2018.
  • For the originated commercial loan portfolio, the allowance for loan losses as a percentage of loans was 0.93% at December 31, 2018 compared to 0.94% at September 30, 2018.
  • The originated commercial allowance for loan losses represented 181% of originated non-performing commercial loans at December 31, 2018 compared to 182% at September 30, 2018.

Retail Banking

  • Residential mortgage loans totaled $8.2 billion at December 31, 2018, an increase of $1.2 billion from September 30, 2018.
  • Home equity loans totaled $2.0 billion at December 31, 2018, an increase of $95 million from September 30, 2018.
  • Retail deposits totaled $23.1 billion at December 31, 2018 compared to $21.3 billion at September 30, 2018.
  • The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 0.57% at December 31, 2018 compared to 0.48% at September 30, 2018.
  • The ratio of originated non-performing home equity loans to originated home equity loans was 0.85% at December 31, 2018 compared to 0.80% at September 30, 2018.

Conference Call

On January 17, 2019, at 5 p.m., Eastern Time, People's United Financial will host a conference call to discuss this earnings announcement.  The call may be heard through www.peoples.com by selecting "Investor Relations" in the "About Us" section on the home page, and then selecting "Conference Calls" in the "News and Events" section.  Additional materials relating to the call may also be accessed at People's United Bank's web site.  The call will be archived on the web site and available for approximately 90 days.

Certain statements contained in this release are forward-looking in nature. These include all statements about People's United Financial's plans, objectives, expectations and other statements that are not historical facts, and usually use words such as "expect," "anticipate," "believe," "should" and similar expressions. Such statements represent management's current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause People's United Financial's actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors of particular importance to People's United Financial include, but are not limited to: (1) changes in general, international, national or regional economic conditions; (2) changes in interest rates; (3) changes in loan default and charge-off rates; (4) changes in deposit levels; (5) changes in levels of income and expense in non-interest income and expense related activities; (6) changes in accounting and regulatory guidance applicable to banks; (7) price levels and conditions in the public securities markets generally; (8) competition and its effect on pricing, spending, third-party relationships and revenues; (9) the successful integration of acquisitions; and (10) changes in regulation resulting from or relating to financial reform legislation. 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.












FINANCIAL HIGHLIGHTS
























People's United Financial completed its acquisition of First Connecticut Bancorp effective October 1, 2018.  Accordingly,

First Connecticut's results of operations are included beginning with the effective date, and prior period results have not

been restated to include First Connecticut.


Three Months Ended



Dec. 31,


Sept. 30,


June 30,


March 31,


Dec. 31,


(dollars in millions, except per common share data)


2018


2018


2018


2018


2017


Earnings Data:












  Net interest income (fully taxable equivalent)

$

339.5

$

313.0

$

307.8

$

302.1

$

304.1


  Net interest income 


332.6


306.4


301.2


295.8


292.3


  Provision for loan losses


9.9


8.2


6.5


5.4


7.5


  Non-interest income (1)


88.7


92.3


94.9


90.4


87.3


  Non-interest expense (1)


262.7


241.3


248.6


243.5


239.7


  Income before income tax expense


148.7


149.2


141.0


137.3


132.4


  Net income


132.9


117.0


110.2


107.9


106.2


  Net income available to common shareholders (1)


129.4


113.5


106.7


104.4


102.7














Selected Statistical Data:












  Net interest margin (2)


3.17

%

3.15

%

3.10

%

3.05

%

3.07

%

  Return on average assets (1), (2)


1.11


1.06


1.00


0.98


0.96


  Return on average common equity (2)


8.3


8.0


7.6


7.5


7.4


  Return on average tangible common equity (1), (2)


14.9


14.5


13.9


13.8


13.8


  Efficiency ratio (1)


55.1


56.7


58.4


59.4


56.1














Common Share Data:












  Earnings per common share: 












    Basic

$

0.35

$

0.33

$

0.31

$

0.31

$

0.30


    Diluted (1)


0.35


0.33


0.31


0.30


0.30


  Dividends paid per common share


0.1750


0.1750


0.1750


0.1725


0.1725


  Common dividend payout ratio (1)


50.3

%

52.9

%

56.2

%

56.3

%

57.1

%

  Book value per common share (end of period)

$

16.95

$

16.69

$

16.56

$

16.43

$

16.40


  Tangible book value per common share (end of period) (1)

9.23


9.19


9.02


8.93


8.87


  Stock price:












    High


17.46


19.00


19.37


20.26


19.50


    Low


13.66


16.95


18.00


18.18


17.58


    Close (end of period)


14.43


17.12


18.09


18.66


18.70


  Common shares (end of period) (in millions)


371.02


342.36


341.59


341.01


339.98


  Weighted average diluted common shares (in millions)

372.83


345.04


344.47


344.00


341.11














(1) See Non-GAAP Financial Measures and Reconciliation to GAAP.

(2) Annualized.













 

People's United Financial, Inc.






FINANCIAL HIGHLIGHTS












People's United Financial completed its acquisition of First Connecticut Bancorp effective October 1, 2018.  

Accordingly, First Connecticut's results of operations are included beginning with the effective date,

and prior period results have not been restated to include First Connecticut.


Twelve Months Ended


December 31,

(dollars in millions, except per common share data)


2018


2017


Earnings Data:






  Net interest income (fully taxable equivalent)

$

1,262.4

$

1,143.2


  Net interest income 


1,236.0


1,100.5


  Provision for loan losses


30.0


26.0


  Non-interest income (1)


366.4


352.9


  Non-interest expense (1)


996.1


960.3


  Income before income tax expense


576.3


467.1


  Net income


468.1


337.2


  Net income available to common shareholders (1)


454.0


323.1








Selected Statistical Data:






  Net interest margin


3.12

%

2.98

%

  Return on average assets (1)


1.04


0.79


  Return on average common equity


7.8


6.0


  Return on average tangible common equity (1)


14.3


11.0


  Efficiency ratio (1)


57.4


57.7








Common Share Data:






  Earnings per common share:






    Basic

$

1.30

$

0.97


    Diluted (1)


1.29


0.97


  Dividends paid per common share


0.6975


0.6875


  Common dividend payout ratio (1)


53.7

%

70.6

%

  Book value per common share (end of period)

$

16.95

$

16.40


  Tangible book value per common share (end of period) (1)


9.23


8.87


  Stock price:






    High


20.26


19.85


    Low


13.66


15.97


    Close (end of period)


14.43


18.70


  Common shares (end of period) (in millions)


371.02


339.98


  Weighted average diluted common shares (in millions)


351.66


332.36








(1) See Non-GAAP Financial Measures and Reconciliation to GAAP.


 

People's United Financial, Inc.












FINANCIAL HIGHLIGHTS - Continued
























People's United Financial completed its acquisition of First Connecticut Bancorp effective October 1, 2018.  Accordingly,

First Connecticut's results of operations are included beginning with the effective date, and prior period results have not

been restated to include First Connecticut.


As of and for the Three Months Ended



Dec. 31,


Sept. 30,


June 30,


March 31, 


Dec. 31,


(dollars in millions)


2018


2018


2018


2018


2017


Financial Condition Data:












    Total assets

$

47,877

$

44,133

$

44,575

$

44,101

$

44,453


    Loans 


35,241


32,199


32,512


32,104


32,575


    Securities


7,233


7,385


7,324


7,173


7,043


    Short-term investments


266


128


253


470


378


    Allowance for loan losses


240


238


237


235


234


    Goodwill and other acquisition-related intangible assets

2,866


2,569


2,574


2,555


2,560


    Deposits


36,159


33,210


32,468


32,894


33,056


    Borrowings


3,593


3,392


4,639


3,877


4,104


    Notes and debentures


896


886


889


892


902


    Stockholders' equity


6,534


5,959


5,900


5,845


5,820


    Total risk-weighted assets (1):












       People's United Financial, Inc.


35,859


33,181


33,369


32,833


33,256


       People's United Bank, N.A.


35,809


33,132


33,317


32,784


33,202


    Non-performing assets (2)


186


173


187


174


168


    Net loan charge-offs


7.5


7.0


5.0


4.5


6.5














Average Balances:












    Loans

$

35,016

$

32,166

$

32,116

$

32,096

$

32,271


    Securities (3)


7,479


7,404


7,302


7,186


7,022


    Short-term investments


292


193


267


366


361


    Total earning assets


42,786


39,763


39,685


39,648


39,654


    Total assets


47,721


44,245


44,110


44,011


44,039


    Deposits


35,959


33,058


32,535


32,824


32,879


    Borrowings


3,456


3,539


4,031


3,752


3,836


    Notes and debentures


886


888


890


895


904


    Total funding liabilities


40,302


37,485


37,456


37,471


37,619


    Stockholders' equity


6,515


5,937


5,870


5,820


5,774














Ratios:












    Net loan charge-offs to average total loans (annualized)

0.09

%

0.09

%

0.06

%

0.06

%

0.08

%

    Non-performing assets to originated loans,












      real estate owned and repossessed assets (2)


0.61


0.57


0.62


0.58


0.56


    Originated allowance for loan losses to:












      Originated loans (2)


0.77


0.78


0.77


0.78


0.77


      Originated non-performing loans (2)


140.9


147.9


138.4


149.3


155.2


    Average stockholders' equity to average total assets


13.7


13.4


13.3


13.2


13.1


    Stockholders' equity to total assets


13.6


13.5


13.2


13.3


13.1


    Tangible common equity to tangible assets (4)


7.6


7.6


7.3


7.3


7.2


    Total risk-based capital (1):












       People's United Financial, Inc.


12.6


12.8


12.5


12.6


12.2


       People's United Bank, N.A.


13.2


13.6


13.4


12.9


12.6














(1) December 31, 2018 amounts and ratios are preliminary.

(2) Excludes acquired loans.

(3) Average balances for securities are based on amortized cost.

(4) See Non-GAAP Financial Measures and Reconciliation to GAAP.


 

People's United Financial, Inc.





CONSOLIDATED STATEMENTS OF CONDITION











Dec. 31,

Sept. 30,

June 30,

Dec. 31,

(in millions)

2018

2018

2018

2017

Assets





Cash and due from banks

$        665.7

$        410.5

$        462.7

$        505.1

Short-term investments

266.3

127.5

253.1

377.5

Securities:





  Trading debt securities, at fair value

8.4

8.3

8.2

8.2

  Equity securities, at fair value

8.1

8.9

9.9

8.7

  Debt securities available-for-sale, at fair value 

3,121.0

3,312.1

3,245.1

3,125.3

  Debt securities held-to-maturity, at amortized cost

3,792.3

3,742.9

3,718.7

3,588.1

  Federal Home Loan Bank and Federal Reserve Bank stock, at cost

303.4

312.4

342.2

312.3

    Total securities

7,233.2

7,384.6

7,324.1

7,042.6

Loans held-for-sale

19.5

15.2

17.1

16.6

Loans: 





  Commercial real estate

11,649.6

10,595.5

10,761.1

11,068.7

  Commercial and industrial

9,088.9

8,568.6

8,823.3

8,731.1

  Equipment financing

4,339.2

4,209.3

4,103.9

3,905.4

    Total Commercial Portfolio

25,077.7

23,373.4

23,688.3

23,705.2

  Residential mortgage

8,154.2

6,911.9

6,866.2

6,805.7

  Home equity and other consumer

2,009.5

1,914.0

1,957.5

2,064.4

    Total Retail Portfolio

10,163.7

8,825.9

8,823.7

8,870.1

    Total loans

35,241.4

32,199.3

32,512.0

32,575.3

  Less allowance for loan losses

(240.4)

(238.0)

(236.8)

(234.4)

    Total loans, net

35,001.0

31,961.3

32,275.2

32,340.9

Goodwill and other acquisition-related intangible assets

2,865.7

2,568.9

2,573.8

2,560.0

Bank-owned life insurance

467.0

407.7

407.2

405.0

Premises and equipment, net

267.3

243.8

246.3

253.0

Other assets

1,091.6

1,013.7

1,015.0

952.7

    Total assets

$  47,877.3

$  44,133.2

$  44,574.5

$  44,453.4






Liabilities





Deposits: 





  Non-interest-bearing

$    8,543.0

$    8,060.2

$    8,002.4

$    8,002.4

  Savings

4,116.5

4,048.8

4,184.9

4,410.5

  Interest-bearing checking and money market

16,583.3

15,065.3

14,659.4

15,189.1

  Time

6,916.2

6,035.9

5,621.5

5,454.3

    Total deposits

36,159.0

33,210.2

32,468.2

33,056.3

Borrowings:





  Federal Home Loan Bank advances

2,404.5

2,369.7

3,510.1

2,774.4

  Federal funds purchased

845.0

735.0

855.0

820.0

  Customer repurchase agreements

332.9

261.3

254.9

301.6

  Other borrowings

11.0

26.0

19.1

207.8

    Total borrowings

3,593.4

3,392.0

4,639.1

4,103.8

Notes and debentures

895.8

885.6

888.7

901.6

Other liabilities

695.2

686.5

678.3

571.8

    Total liabilities

41,343.4

38,174.3

38,674.3

38,633.5






Stockholders' Equity





Preferred stock

244.1

244.1

244.1

244.1

Common stock

4.7

4.4

4.4

4.4

Additional paid-in capital 

6,549.3

6,054.3

6,040.3

6,012.3

Retained earnings

1,284.8

1,220.9

1,167.9

1,040.2

Unallocated common stock of Employee Stock Ownership Plan, at cost

(130.1)

(131.9)

(133.7)

(137.3)

Accumulated other comprehensive loss

(256.8)

(270.8)

(260.7)

(181.7)

Treasury stock, at cost

(1,162.1)

(1,162.1)

(1,162.1)

(1,162.1)

    Total stockholders' equity

6,533.9

5,958.9

5,900.2

5,819.9

    Total liabilities and stockholders' equity

$  47,877.3

$  44,133.2

$  44,574.5

$  44,453.4


 

People's United Financial, Inc.












CONSOLIDATED STATEMENTS OF INCOME

























Three Months Ended




Dec. 31,


Sept. 30,


June 30,


March 31,


Dec. 31,



(in millions, except per common share data)

2018


2018


2018


2018


2017



Interest and dividend income:












  Commercial real estate

$  130.2


$  114.7


$  111.5


$  107.0


$  106.2



  Commercial and industrial

100.1


93.2


90.1


82.3


80.1



  Equipment financing

56.7


56.2


50.5


48.9


47.4



  Residential mortgage

70.2


56.0


55.3


54.7


53.4



  Home equity and other consumer

24.4


22.0


21.4


20.8


20.7



    Total interest on loans

381.6


342.1


328.8


313.7


307.8



  Securities

48.5


46.6


45.1


44.0


41.6



  Short-term investments

1.4


1.1


1.3


1.2


1.0



  Loans held-for-sale

0.3


0.2


0.2


0.2


0.2



    Total interest and dividend income

431.8


390.0


375.4


359.1


350.6



Interest expense:












  Deposits 

70.6


56.9


47.3


41.3


38.3



  Borrowings 

20.0


18.2


18.5


14.2


12.4



  Notes and debentures

8.6


8.5


8.4


7.8


7.6



    Total interest expense

99.2


83.6


74.2


63.3


58.3



    Net interest income

332.6


306.4


301.2


295.8


292.3



Provision for loan losses 

9.9


8.2


6.5


5.4


7.5



    Net interest income after provision for loan losses

322.7


298.2


294.7


290.4


284.8



Non-interest income:












  Bank service charges

26.9


24.9


24.3


23.8


24.7



  Investment management fees

16.4


17.4


17.2


17.7


17.3



  Operating lease income

12.0


11.0


11.2


10.7


11.7



  Commercial banking lending fees

9.6


7.9


9.4


10.4


8.8



  Insurance revenue

6.7


9.8


8.3


9.8


6.9



  Cash management fees

6.5


7.0


7.0


6.6


6.5



  Customer interest rate swap income, net

6.3


2.8


4.0


1.5


5.2



  Brokerage commissions

3.3


3.2


3.2


3.1


2.9



  Net security (losses) gains (1)

(10.0)


0.1


-


0.1


(9.8)



  Other non-interest income

11.0


8.2


10.3


6.7


13.1



    Total non-interest income

88.7


92.3


94.9


90.4


87.3



Non-interest expense:












  Compensation and benefits (2)

151.5


135.7


135.0


140.7


132.7



  Occupancy and equipment 

44.6


41.6


40.8


41.2


41.0



  Professional and outside services

21.4


17.0


20.6


18.6


18.7



  Operating lease expense

9.8


8.9


8.7


9.0


8.9



  Regulatory assessments

7.4


10.0


9.9


10.6


11.9



  Amortization of other acquisition-related intangible assets

6.9


4.9


4.9


5.1


7.9



  Other non-interest expense (2)

21.1


23.2


28.7


18.3


18.6



    Total non-interest expense (1)

262.7


241.3


248.6


243.5


239.7



    Income before income tax expense

148.7


149.2


141.0


137.3


132.4



Income tax expense (1)

15.8


32.2


30.8


29.4


26.2



    Net income

132.9


117.0


110.2


107.9


106.2



Preferred stock dividend

3.5


3.5


3.5


3.5


3.5



    Net income available to common shareholders

$  129.4


$  113.5


$  106.7


$  104.4


$  102.7















Earnings per common share:












  Basic

$     0.35


$     0.33


$     0.31


$     0.31


$     0.30



  Diluted

0.35


0.33


0.31


0.30


0.30















(1) Includes $10.0 million of security losses for both the three months ended December 31, 2018 and 2017, which are considered

     non-operating, incurred in response to tax reform-related benefits realized in each period. Total non-interest expense includes 

     $8.0 million, $0.5 million, $2.9 million and $1.6 million of non-operating expenses for the three months ended December 31, 2018, 

     September 30, 2018, June 30, 2018 and December 31, 2017, respectively.  Income tax expense includes $9.2 million and $6.5 million 

     of benefits realized in connection with tax reform, which are considered non-operating, for the three months ended 

     December 31, 2018 and 2017, respectively.  See Non-GAAP Financial Measures and Reconciliation to GAAP.

(2) In accordance with GAAP, effective January 1, 2018, net periodic pension and postretirement benefit costs are reported within other

     non-interest expense rather than compensation and benefits.  Prior period amounts have been reclassified to conform to this

     presentation.


 

People's United Financial, Inc.





CONSOLIDATED STATEMENTS OF INCOME











Twelve Months Ended



December 31,


(in millions, except per common share data)

2018


2017


Interest and dividend income:





  Commercial real estate

$   463.4


$   405.7


  Commercial and industrial

365.7


298.8


  Equipment financing

212.3


152.1


  Residential mortgage

236.2


207.5


  Home equity and other consumer

88.6


80.0


    Total interest on loans

1,366.2


1,144.1


  Securities

184.2


153.7


  Short-term investments

5.0


3.7


  Loans held for sale

0.9


0.9


    Total interest and dividend income

1,556.3


1,302.4


Interest expense:





  Deposits 

216.1


130.7


  Borrowings 

70.9


41.3


  Notes and debentures

33.3


29.9


    Total interest expense

320.3


201.9


    Net interest income

1,236.0


1,100.5


Provision for loan losses 

30.0


26.0


    Net interest income after provision for loan losses

1,206.0


1,074.5


Non-interest income:





  Bank service charges

99.9


98.5


  Investment management fees

68.7


66.5


  Operating lease income

44.9


43.8


  Commercial banking lending fees

37.3


35.5


  Insurance revenue

34.6


33.2


  Cash management fees

27.1


26.1


  Customer interest rate swap income, net

14.6


12.3


  Brokerage commissions

12.8


12.1


  Net security (losses) gains (1)

(9.8)


(25.4)


  Other non-interest income

36.3


50.3


    Total non-interest income

366.4


352.9


Non-interest expense:





  Compensation and benefits (2)

562.9


522.7


  Occupancy and equipment 

168.2


159.6


  Professional and outside services

77.6


81.5


  Regulatory assessments

37.9


41.7


  Operating lease expense

36.4


35.2


  Amortization of other acquisition-related intangible assets

21.8


30.0


  Other non-interest expense (2)

91.3


89.6


    Total non-interest expense (1)

996.1


960.3


    Income before income tax expense

576.3


467.1


Income tax expense (1)

108.2


129.9


    Net income

468.1


337.2


Preferred stock dividend

14.1


14.1


    Net income available to common shareholders

$   454.0


$   323.1







Earnings per common share:





   Basic

$      1.30


$      0.98


   Diluted 

1.29


0.97







(1) Includes $10.0 million of security losses for both the twelve months ended December 31, 2018 and 2017,

     which are considered non-operating, incurred in response to tax reform-related benefits realized in

     each period. Total non-interest expense includes $11.4 million and $30.6 million of non-operating

     expenses for the twelve months ended December 31, 2018 and 2017, respectively.  Income tax

     expense includes $9.2 million and $6.5 million of benefits realized in connection with tax reform,

     which are considered non-operating, for the twelve months ended December 31, 2018 and 2017,

     respectively.  See Non-GAAP Financial Measures and Reconciliation to GAAP.

(2) In accordance with GAAP, effective January 1, 2018, net periodic pension and postretirement benefit 

     costs are reported within other non-interest expense rather than compensation and benefits.  Prior

     period amounts have been reclassified to conform to this presentation.


 

...

People's United Financial, Inc.












AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)



















December 31, 2018


September 30, 2018


December 31, 2017

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

$        291.6

$      1.4

2.02%


$        192.5

$      1.1

2.06%


$        360.7

$      1.0

1.16%

Securities (2)

7,478.7

52.9

2.83


7,404.2

50.8

2.75


7,022.6

49.2

2.80

Loans:












  Commercial real estate

11,688.1

130.2

4.45


10,641.4

114.7

4.31


11,101.5

106.2

3.83

  Commercial and industrial

8,880.3

102.6

4.62


8,584.8

95.6

4.45


8,533.3

84.3

3.95

  Equipment financing

4,243.2

56.7

5.34


4,120.8

56.2

5.47


3,750.4

47.4

5.05

  Residential mortgage

8,165.4

70.5

3.46


6,887.3

56.2

3.27


6,806.5

53.6

3.15

  Home equity and other consumer

2,038.5

24.4

4.80


1,931.8

22.0

4.55


2,079.0

20.7

3.99

    Total loans

35,015.5

384.4

4.39


32,166.1