U.S. Markets open in 7 hrs 54 mins

People's United Financial Reports Second Quarter Net Income of $133.2 Million, or $0.33 per Common Share

Operating Earnings of $0.34 per Common Share

Board of Directors Approves Share Repurchase Program

- Announced the acquisition of United Financial Bancorp on July 15th.

- Return on average assets of 1.04 percent and return on average tangible common equity of 14.1 percent.

- Efficiency ratio of 55.8 percent, an improvement of 150 basis points linked-quarter and 260 basis points year-over-year, reflecting continued focus on enhancing operating leverage.

- Non-interest income of $106.3 million, an increase of 12 percent both linked-quarter and year-over-year.

- Period-end loans and deposits increased nine percent and seven percent, respectively, from March 31st, driven by the BSB Bancorp acquisition and organic growth.

BRIDGEPORT, Conn., July 18, 2019 /PRNewswire/ -- People's United Financial, Inc. (PBCT) today reported results for the second quarter 2019. These results along with comparison periods are summarized below:

($ in millions, except per common share data)




 Three Months Ended




Jun. 30, 2019


Mar. 31, 2019


Jun. 30, 2018









Net income


$         133.2


$         114.6


$         110.2

Net income available


129.7


111.1


106.7


to common shareholders





Per common share


0.33


0.30


0.31









Operating earnings1


134.8


123.0


109.0


Per common share


0.34


0.33


0.32

















Net interest income


$         348.1


$         332.8


$         301.2


Net interest margin


3.12%


3.20%


3.10%









Non-interest income


106.3


94.6


94.9

















Non-interest expense


$         278.4


$         277.2


$         248.6

Operating non-interest expense1

271.9


262.2


245.7









Efficiency ratio


55.8%


57.3%


58.4%

















Average balances







Loans


$       38,229


$       35,046


$       32,116

Deposits


39,211


36,450


32,535









Period-end balances







Loans


38,557


35,515


32,512

Deposits


39,467


36,901


32,468









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



"We are pleased with the Company's performance in the second quarter," said Jack Barnes, Chairman and Chief Executive Officer. "Operating earnings of $135 million increased 24 percent from a year ago and operating return on average common tangible equity of 14.6 percent improved 40 basis points. These strong results reflect the success of our strategy of balancing organic growth with thoughtful M&A. The integration of BSB Bancorp continues to progress very well and we were excited to announce earlier this week the financially attractive acquisition of United Financial Bancorp, which strengthens our well-established presence in central Connecticut and western Massachusetts. We are also pleased to announce the Company's Board of Directors approved the repurchase of up to 20 million common shares, which further demonstrates our commitment to returning capital to shareholders."

"Higher revenues and our continued emphasis on controlling costs generated a second quarter efficiency ratio of 55.8 percent, an improvement of 260 basis points from the prior year quarter," stated David Rosato, Senior Executive Vice President and Chief Financial Offer. "Total revenues of $454 million grew 15 percent year-over-year due to increases in both net interest income and non-interest income. Net interest margin of 3.12 percent improved two basis points from a year ago, but declined eight basis points linked-quarter. While new business yields remained greater than the total loan portfolio yield, the margin contracted due to higher deposit costs and the addition of BSB Bancorp. Organic loan and deposit period-end balances grew one percent and two percent respectively, from March 31st. Loan growth was driven by strong results in mortgage warehouse lending, healthcare and equipment finance, partially offset by continued headwinds in commercial real estate and planned reductions in residential mortgage balances. Deposits benefited from higher than expected municipal balances and a large short-term deposit from a commercial customer."












 As of and for the Three Months Ended




Jun. 30, 2019


Mar. 31, 2019


Jun. 30, 2018









Asset Quality















Net loan charge-offs 


0.05%


0.06%


0.06%

to average total loans




Originated non-performing loans


0.52%


0.49%


0.56%

as a percentage of originated loans




















Returns















Return on average assets1


1.04%


0.96%


1.00%

Return on average tangible common equity1

14.1%


13.0%


13.9%

















Capital Ratios















People's United Financial, Inc.







Tangible common equity / tangible assets

7.7%


7.7%


7.3%

Tier 1 leverage


8.7%


8.8%


8.6%

Common equity tier 1 


10.0%


10.2%


10.0%

Tier 1 risk-based


10.7%


10.8%


10.8%

Total risk-based 


12.0%


12.4%


12.5%









People's United Bank, N.A.







Tier 1 leverage



8.9%


9.0%


9.1%

Common equity tier 1 



10.9%


11.2%


11.4%

Tier 1 risk-based



10.9%


11.2%


11.4%

Total risk-based 



12.4%


12.9%


13.4%









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





The Company's Board of Directors approved the repurchase of up to 20 million shares of common stock. The share repurchases will be made at the discretion of the Company following the close of the United Financial Bancorp acquisition. The Board of Directors also declared a $0.1775 per common share quarterly dividend payable August 15, 2019 to shareholders of record on August 1, 2019. Based on the closing stock price on July 17, 2019, the dividend yield on People's United Financial common stock is 4.4 percent.

People's United Bank, N.A. is a subsidiary of People's United Financial, Inc., a diversified, community-focused financial services company headquartered in the Northeast with more than $51 billion in assets. Founded in 1842, People's United Bank offers commercial and retail banking through a network of over 400 retail locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine, as well as wealth management and insurance solutions. The company also provides specialized commercial services to customers nationwide.

2Q 2019 Financial Highlights

Summary

  • Net income totaled $133.2 million, or $0.33 per common share.
  • Net interest income totaled $348.1 million in 2Q19 compared to $332.8 million in 1Q19.
  • Net interest margin decreased eight basis points from 1Q19 to 3.12% reflecting:
  • Provision for loan losses totaled $7.6 million.
  • Non-interest income totaled $106.3 million in 2Q19 compared to $94.6 million in 1Q19.
  • Non-interest expense totaled $278.4 million in 2Q19 compared to $277.2 million in 1Q19.
  • The effective income tax rate was 20.9% for 2Q19 and 20.8% for the first six months of 2019, compared to 18.8% for the full-year of 2018.

Commercial Banking

  • Commercial loans totaled $27.0 billion at June 30, 2019, an increase of $1.6 billion from March 31, 2019.
  • Average commercial loans totaled $26.5 billion in 2Q19, an increase of $1.6 billion from 1Q19.
  • Commercial deposits totaled $15.1 billion at June 30, 2019 compared to $13.5 billion at March 31, 2019.
  • The ratio of originated non-performing commercial loans to originated commercial loans was 0.48% at June 30, 2019 compared to 0.45% at March 31, 2019.
  • Non-performing commercial assets, excluding acquired non-performing loans, totaled $117.6 million at June 30, 2019 compared to $111.1 million at March 31, 2019.
  • For the originated commercial loan portfolio, the allowance for loan losses as a percentage of loans was 0.91% at both June 30, 2019 and March 31, 2019.
  • The originated commercial allowance for loan losses represented 190% of originated non-performing commercial loans at June 30, 2019 compared to 202% at March 31, 2019.

Retail Banking

  • Residential mortgage loans totaled $9.5 billion at June 30, 2019, an increase of $1.4 billion from March 31, 2019.
  • Home equity loans totaled $2.0 billion at June 30, 2019, an increase of $114 million from March 31, 2019.
  • Retail deposits totaled $24.4 billion at June 30, 2019 compared to $23.4 billion at March 31, 2019.
  • The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 0.57% at June 30, 2019 compared to 0.52% at March 31, 2019.
  • The ratio of originated non-performing home equity loans to originated home equity loans was 0.86% at June 30, 2019 compared to 0.81% at March 31, 2019.

Conference Call
On July 18, 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 BSB Bancorp, Inc. effective April 1, 2019.  Accordingly, BSB Bancorp's

results of operations are included beginning with the effective date, and prior period results have not been restated to include

BSB Bancorp.













Three Months Ended



June 30,


March 31,


Dec. 31,


Sept. 30,


June 30,


(dollars in millions, except per common share data)


2019


2019


2018


2018


2018


Earnings Data:












  Net interest income (fully taxable equivalent)

$

355.4

$

340.0

$

339.5

$

313.0

$

307.8


  Net interest income 


348.1


332.8


332.6


306.4


301.2


  Provision for loan losses


7.6


5.6


9.9


8.2


6.5


  Non-interest income (1)


106.3


94.6


88.7


92.3


94.9


  Non-interest expense (1)


278.4


277.2


262.7


241.3


248.6


  Income before income tax expense


168.4


144.6


148.7


149.2


141.0


  Net income


133.2


114.6


132.9


117.0


110.2


  Net income available to common shareholders (1)


129.7


111.1


129.4


113.5


106.7














Selected Statistical Data:












  Net interest margin (2)


3.12

%

3.20

%

3.17

%

3.15

%

3.10

%

  Return on average assets (1), (2)


1.04


0.96


1.11


1.06


1.00


  Return on average common equity (2)


7.7


7.0


8.3


8.0


7.6


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


14.1


13.0


14.9


14.5


13.9


  Efficiency ratio (1)


55.8


57.3


55.1


56.7


58.4














Common Share Data:












  Earnings per common share: 












    Basic

$

0.33

$

0.30

$

0.35

$

0.33

$

0.31


    Diluted (1)


0.33


0.30


0.35


0.33


0.31


  Dividends paid per common share


0.1775


0.1750


0.1750


0.1750


0.1750


  Common dividend payout ratio (1)


53.8

%

58.6

%

50.3

%

52.9

%

56.2

%

  Book value per common share (end of period)

$

17.34

$

17.13

$

16.95

$

16.69

$

16.56


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


9.51


9.35


9.23


9.19


9.02


  Stock price:












    High


17.66


18.03


17.46


19.00


19.37


    Low


15.24


14.25


13.66


16.95


18.00


    Close (end of period)


16.78


16.44


14.43


17.12


18.09


  Common shares (end of period) (in millions)


392.24


372.18


371.02


342.36


341.59


  Weighted average diluted common shares (in millions)


394.57


374.09


372.83


345.04


344.47














(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 BSB Bancorp, Inc. effective April 1, 2019. 


Accordingly, BSB Bancorp's results of operations are included beginning with the effective date, 


and prior period results have not been restated to include BSB Bancorp.






Six Months Ended


June 30,

(dollars in millions, except per common share data)

2019


2018

Earnings Data:






  Net interest income (fully taxable equivalent)

$

695.4

$

609.9


  Net interest income 


680.9


597.0


  Provision for loan losses


13.2


11.9


  Non-interest income


200.9


185.3


  Non-interest expense (1)


555.6


492.1


  Income before income tax expense


313.0


278.3


  Net income


247.8


218.1


  Net income available to common shareholders (1)


240.8


211.1








Selected Statistical Data:






  Net interest margin (2)


3.15

%

3.07

%

  Return on average assets (1), (2)


1.00


0.99


  Return on average common equity (2)


7.4


7.5


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


13.5


13.9


  Efficiency ratio (1)


56.6


58.9








Common Share Data:






  Earnings per common share:






    Basic

$

0.63

$

0.62


    Diluted (1)


0.63


0.61


  Dividends paid per common share


0.3525


0.3475


  Common dividend payout ratio (1)


56.0

%

56.2

%

  Book value per common share (end of period)

$

17.34

$

16.56


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


9.51


9.02


  Stock price:






    High


18.03


20.26


    Low


14.25


18.00


    Close (end of period)


16.78


18.09


  Common shares (end of period) (in millions)


392.24


341.59


  Weighted average diluted common shares (in millions)


384.39


344.23








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






(2) Annualized.






 

People's United Financial, Inc.












FINANCIAL HIGHLIGHTS - Continued
























People's United Financial completed its acquisition of BSB Bancorp, Inc. effective April 1, 2019.  Accordingly, BSB Bancorp's

results of operations are included beginning with the effective date, and prior period results have not been restated to include

BSB Bancorp.













As of and for the Three Months Ended



June 30,


March 31,


Dec. 31,


Sept. 30,


June 30,


(dollars in millions)


2019


2019


2018


2018


2018


Financial Condition Data:












    Total assets

$

51,622

$

48,092

$

47,877

$

44,133

$

44,575


    Loans 


38,557


35,515


35,241


32,199


32,512


    Securities


7,086


7,176


7,233


7,385


7,324


    Short-term investments


275


106


266


128


253


    Allowance for loan losses


244


241


240


238


237


    Goodwill and other acquisition-related intangible assets

3,073


2,897


2,866


2,569


2,574


    Deposits


39,467


36,901


36,159


33,210


32,468


    Borrowings


3,400


2,860


3,593


3,392


4,639


    Notes and debentures


911


902


896


886


889


    Stockholders' equity


7,046


6,621


6,534


5,959


5,900


    Total risk-weighted assets (1):












       People's United Financial, Inc.


39,128


36,466


35,910


33,181


33,369


       People's United Bank, N.A.


39,078


36,447


35,875


33,132


33,317


    Non-performing assets (2)


179


167


186


173


187


    Net loan charge-offs


4.5


5.1


7.5


7.0


5.0














Average Balances:












    Loans

$

38,229

$

35,046

$

35,016

$

32,166

$

32,116


    Securities (3)


7,147


7,311


7,479


7,404


7,302


    Short-term investments


214


203


292


193


267


    Total earning assets


45,591


42,560


42,786


39,763


39,685


    Total assets


51,088


47,800


47,721


44,245


44,110


    Deposits


39,211


36,450


35,959


33,058


32,535


    Borrowings


3,146


2,937


3,456


3,539


4,031


    Notes and debentures


904


896


886


888


890


    Total funding liabilities


43,261


40,284


40,302


37,485


37,456


    Stockholders' equity


6,978


6,562


6,515


5,937


5,870














Ratios:












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

0.05

%

0.06

%

0.09

%

0.09

%

0.06

%

    Non-performing assets to originated loans,












      real estate owned and repossessed assets (2)


0.56


0.54


0.61


0.57


0.62


    Originated allowance for loan losses to:












      Originated loans (2)


0.76


0.76


0.77


0.78


0.77


      Originated non-performing loans (2)


146.0


157.0


140.9


147.9


138.4


    Average stockholders' equity to average total assets


13.7


13.7


13.7


13.4


13.3


    Stockholders' equity to total assets


13.6


13.8


13.6


13.5


13.2


    Tangible common equity to tangible assets (4)


7.7


7.7


7.6


7.6


7.3


    Total risk-based capital (1):












       People's United Financial, Inc.


12.0


12.4


12.5


12.8


12.5


       People's United Bank, N.A.


12.4


12.9


13.2


13.6


13.4














(1) June 30, 2019 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











June 30,

March 31,

Dec. 31,

June 30,

(in millions)

2019

2019

2018

2018

Assets





Cash and due from banks

$        505.9

$        508.5

$        665.7

$        462.7

Short-term investments

274.8

106.0

266.3

253.1

Securities:





  Trading debt securities, at fair value

9.3

8.3

8.4

8.2

  Equity securities, at fair value

8.5

8.2

8.1

9.9

  Debt securities available-for-sale, at fair value 

2,971.2

3,060.0

3,121.0

3,245.1

  Debt securities held-to-maturity, at amortized cost

3,807.5

3,823.4

3,792.3

3,718.7

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

289.4

275.6

303.4

342.2

    Total securities

7,085.9

7,175.5

7,233.2

7,324.1

Loans held-for-sale

17.4

7.8

19.5

17.1

Loans: 





  Commercial real estate

12,230.7

11,591.2

11,649.6

10,761.1

  Commercial and industrial

10,121.8

9,354.7

9,088.9

8,823.3

  Equipment financing

4,611.0

4,466.1

4,339.2

4,103.9

    Total Commercial Portfolio

26,963.5

25,412.0

25,077.7

23,688.3

  Residential mortgage

9,532.6

8,163.1

8,154.2

6,866.2

  Home equity and other consumer

2,060.6

1,940.1

2,009.5

1,957.5

    Total Retail Portfolio

11,593.2

10,103.2

10,163.7

8,823.7

    Total loans

38,556.7

35,515.2

35,241.4

32,512.0

  Less allowance for loan losses

(244.0)

(240.9)

(240.4)

(236.8)

    Total loans, net

38,312.7

35,274.3

35,001.0

32,275.2

Goodwill and other acquisition-related intangible assets

3,072.9

2,896.5

2,865.7

2,573.8

Bank-owned life insurance

504.4

467.8

467.0

407.2

Premises and equipment, net

261.0

255.8

267.3

246.3

Other assets

1,587.5

1,399.7

1,091.6

1,015.0

    Total assets

$  51,622.5

$  48,091.9

$  47,877.3

$  44,574.5






Liabilities





Deposits: 





  Non-interest-bearing

$    8,747.2

$    8,315.6

$    8,543.0

$    8,002.4

  Savings

4,847.4

4,159.1

4,116.5

4,184.9

  Interest-bearing checking and money market

17,424.8

17,130.0

16,583.3

14,659.4

  Time

8,447.9

7,296.2

6,916.2

5,621.5

    Total deposits

39,467.3

36,900.9

36,159.0

32,468.2

Borrowings:





  Federal Home Loan Bank advances

2,054.4

1,573.2

2,404.5

3,510.1

  Federal funds purchased

1,110.0

1,020.0

845.0

855.0

  Customer repurchase agreements

235.2

264.8

332.9

254.9

  Other borrowings

-

1.6

11.0

19.1

    Total borrowings

3,399.6

2,859.6

3,593.4

4,639.1

Notes and debentures

911.5

901.6

895.8

888.7

Other liabilities

797.9

808.6

695.2

678.3

    Total liabilities

44,576.3

41,470.7

41,343.4

38,674.3






Stockholders' Equity





Preferred stock

244.1

244.1

244.1

244.1

Common stock

4.9

4.7

4.7

4.4

Additional paid-in capital 

6,890.7

6,558.8

6,549.3

6,040.3

Retained earnings

1,388.1

1,328.6

1,284.8

1,167.9

Unallocated common stock of Employee Stock Ownership Plan, at cost

(126.5)

(128.3)

(130.1)

(133.7)

Accumulated other comprehensive loss

(193.0)

(224.6)

(256.8)

(260.7)

Treasury stock, at cost

(1,162.1)

(1,162.1)

(1,162.1)

(1,162.1)

    Total stockholders' equity

7,046.2

6,621.2

6,533.9

5,900.2

    Total liabilities and stockholders' equity

$  51,622.5

$  48,091.9

$  47,877.3

$  44,574.5

 

People's United Financial, Inc.










CONSOLIDATED STATEMENTS OF INCOME





















Three Months Ended


June 30,


March 31,


Dec. 31,


Sept. 30,


June 30,

(in millions, except per common share data)

2019


2019


2018


2018


2018

Interest and dividend income:










  Commercial real estate

$  139.9


$  132.7


$  130.2


$  114.7


$      111.5

  Commercial and industrial

111.4


103.9


100.1


93.2


90.1

  Equipment financing

62.8


59.0


56.7


56.2


50.5

  Residential mortgage

85.5


70.7


70.2


56.0


55.3

  Home equity and other consumer

25.7


24.9


24.4


22.0


21.4

    Total interest on loans

425.3


391.2


381.6


342.1


328.8

  Securities

46.2


47.8


48.5


46.6


45.1

  Short-term investments

1.2


1.3


1.4


1.1


1.3

  Loans held-for-sale

0.1


0.2


0.3


0.2


0.2

    Total interest and dividend income

472.8


440.5


431.8


390.0


375.4

Interest expense:










  Deposits 

96.6


81.2


70.6


56.9


47.3

  Borrowings 

19.3


17.7


20.0


18.2


18.5

  Notes and debentures

8.8


8.8


8.6


8.5


8.4

    Total interest expense

124.7


107.7


99.2


83.6


74.2

    Net interest income

348.1


332.8


332.6


306.4


301.2

Provision for loan losses 

7.6


5.6


9.9


8.2


6.5

    Net interest income after provision for loan losses

340.5


327.2


322.7


298.2


294.7

Non-interest income:










  Bank service charges

26.4


25.2


26.9


24.9


24.3

  Investment management fees

17.1


16.5


16.4


17.4


17.2

  Operating lease income

12.7


12.7


12.0


11.0


11.2

  Commercial banking lending fees

10.2


7.8


9.6


7.9


9.4

  Insurance revenue

8.7


10.5


6.7


9.8


8.3

  Customer interest rate swap income, net

7.6


3.0


6.3


2.8


4.0

  Cash management fees

7.2


6.8


6.6


7.0


7.0

  Brokerage commissions

2.6


2.8


3.3


3.2


3.2

  Net security gains (losses) (1)

0.1


-


(10.0)


0.1


-

  Other non-interest income

13.7


9.3


10.9


8.2


10.3

    Total non-interest income

106.3


94.6


88.7


92.3


94.9

Non-interest expense:










  Compensation and benefits 

161.3


155.4


151.5


135.7


135.0

  Occupancy and equipment 

44.4


44.3


44.6


41.6


40.8

  Professional and outside services

24.9


20.0


21.4


17.0


20.6

  Operating lease expense

9.9


9.4


9.8


8.9


8.7

  Amortization of other acquisition-related intangible assets

8.0


6.7


6.9


4.9


4.9

  Regulatory assessments

6.5


7.0


7.4


10.0


9.9

  Other non-interest expense 

23.4


34.4


21.1


23.2


28.7

    Total non-interest expense (1)

278.4


277.2


262.7


241.3


248.6

    Income before income tax expense

168.4


144.6


148.7


149.2


141.0

Income tax expense (1)

35.2


30.0


15.8


32.2


30.8

    Net income

133.2


114.6


132.9


117.0


110.2

Preferred stock dividend

3.5


3.5


3.5


3.5


3.5

    Net income available to common shareholders

$  129.7


$  111.1


$  129.4


$  113.5


$      106.7











Earnings per common share:










  Basic

$     0.33


$     0.30


$     0.35


$     0.33


$        0.31

  Diluted

0.33


0.30


0.35


0.33


0.31











(1) Includes $10.0 million of security losses for the three months ended December 31, 2018, which are considered non-operating,

     incurred as a tax planning strategy in response to tax reform-related benefits recognized in the period. Total non-interest 

     expense includes $6.5 million, $15.0 million, $8.0 million, $0.5 million and $2.9 million of non-operating expenses for the 

     three months ended June 30 ,2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively.  

     Income tax expense includes a $9.2 million benefit recognized in connection with tax reform, which is considered non-operating, 

     for the three months ended December 31, 2018.  See Non-GAAP Financial Measures and Reconciliation to GAAP. 

 

People's United Financial, Inc.




CONSOLIDATED STATEMENTS OF INCOME









Six Months Ended


June 30,

(in millions, except per common share data)

2019


2018

Interest and dividend income:




  Commercial real estate

$   272.6


$      218.5

  Commercial and industrial

215.3


172.4

  Equipment financing

121.8


99.4

  Residential mortgage

156.2


110.0

  Home equity and other consumer

50.6


42.2

    Total interest on loans

816.5


642.5

  Securities

94.0


89.1

  Short-term investments

2.5


2.5

  Loans held for sale

0.3


0.4

    Total interest and dividend income

913.3


734.5

Interest expense:




  Deposits 

177.8


88.6

  Borrowings 

37.0


32.7

  Notes and debentures

17.6


16.2

    Total interest expense

232.4


137.5

    Net interest income

680.9


597.0

Provision for loan losses 

13.2


11.9

    Net interest income after provision for loan losses

667.7


585.1

Non-interest income:




  Bank service charges

51.6


48.1

  Investment management fees

33.6


34.9

  Operating lease income

25.4


21.9

  Insurance revenue

19.2


18.1

  Commercial banking lending fees

18.0


19.8

  Cash management fees

14.0


13.6

  Customer interest rate swap income, net

10.6


5.5

  Brokerage commissions

5.4


6.3

  Other non-interest income

23.1


17.1

    Total non-interest income

200.9


185.3

Non-interest expense:




  Compensation and benefits

316.7


275.7

  Occupancy and equipment 

88.7


82.0

  Professional and outside services

44.9


39.2

  Operating lease expense

19.3


17.7

  Amortization of other acquisition-related intangible assets

14.7


10.0

  Regulatory assessments

13.5


20.5

  Other non-interest expense

57.8


47.0

    Total non-interest expense (1)

555.6


492.1

    Income before income tax expense

313.0


278.3

Income tax expense

65.2


60.2

    Net income

247.8


218.1

Preferred stock dividend

7.0


7.0

    Net income available to common shareholders

$   240.8


$      211.1





Earnings per common share:




   Basic

$      0.63


$        0.62

   Diluted 

0.63


0.61





(1) Total non-interest expense includes $21.5 million and $2.9 million of non-operating expenses for the six

     months ended June 30, 2019 and 2018, respectively. See Non-GAAP Financial Measures and Reconciliation to GAAP.


 

People's United Financial, Inc.












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




















June 30, 2019


March 31, 2019


June 30, 2018

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

$        214.1

$      1.2

2.21%


$        202.8

$      1.3

2.60%


$        266.7

$      1.3

2.02%

Securities (2)

7,147.1

50.8

2.85


7,310.6

52.4

2.87


7,302.1

49.2

2.69

Loans:












  Commercial real estate

12,323.2

139.9

4.54


11,588.3

132.7

4.58


10,802.9

111.5

4.13

  Commercial and industrial

9,638.2

114.1

4.74


8,974.0

106.5

4.74


8,558.3

92.6

4.32

  Equipment financing

4,510.8

62.8

5.56


4,357.7

59.0

5.42


3,923.6

50.5

5.14

  Residential mortgage

9,672.6

85.6

3.54


8,153.6

70.9

3.48


6,853.6

55.5

3.24

  Home equity and other consumer

2,084.6

25.7

4.94


1,972.9

24.9

5.05


1,977.6

21.4

4.33

    Total loans

38,229.4

428.1

4.48


35,046.5

394.0

4.50


32,116.0

331.5

4.13

    Total earning assets

45,590.6

$ 480.1

4.21%


42,559.9

$ 447.7

4.21%


39,684.8

$ 382.0

3.85%

Other assets

5,496.9




5,240.3




4,425.0



    Total assets

$  51,087.5




$  47,800.2




$  44,109.8















Liabilities and stockholders' equity:












Deposits:












  Non-interest-bearing

$    8,605.6

$         -

-   %


$    8,301.3

$         -

-   %


$    7,872.7

$         -

-   %

  Savings, interest-bearing checking












    and money market

22,341.3

57.4

1.03


21,018.0

48.8

0.93


19,220.6

28.2

0.59

  Time

8,263.8

39.2

1.90


7,130.8

32.4

1.82


5,442.3

19.1

1.40

    Total deposits

39,210.7

96.6

0.99


36,450.1

81.2

0.89


32,535.6

47.3

0.58

Borrowings:





...