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People's United Financial Reports Third Quarter Net Income of $135.1 Million, or $0.33 per Common Share

Operating Earnings of $0.34 per Common Share

- Return on average assets of 1.05 percent and return on average tangible common equity of 14.0 percent.

- Net interest margin of 3.12 percent was unchanged from the second quarter and benefited from a four basis point reduction in deposit costs.

- Non-interest income of $106.0 million increased 15 percent from the prior year quarter.

- Period-end loans grew one percent linked-quarter as solid commercial loan growth was partially offset by a planned reduction of residential mortgage balances.

BRIDGEPORT, Conn., Oct. 17, 2019 People's United Financial, Inc. (PBCT) today reported results for the third quarter 2019. These results along with comparison periods are summarized below:










($ in millions, except per common share data)









Three Months Ended





Sep. 30, 2019


Jun. 30, 2019


Sep. 30, 2018











Net income


$ 135.1


$ 133.2


$ 117.0


Net income available


131.6


129.7


113.5



to common shareholders






Per common share


0.33


0.33


0.33











Operating earnings1


135.5


134.8


113.8



Per common share


0.34


0.34


0.33




















Net interest income


$ 348.7


$ 348.1


$ 306.4



Net interest margin


3.12%


3.12%


3.15%











Non-interest income


106.0


106.3


92.3




















Non-interest expense


$ 281.4


$ 278.4


$ 241.3


Operating non-interest expense1

276.4


271.9


240.8











Efficiency ratio


56.8%


55.8%


56.7%




















Average balances








Loans


$ 38,317


$ 38,229


$ 32,166


Deposits


38,657


39,211


33,058











Period-end balances








Loans


38,781


38,557


32,199


Deposits


38,574


39,467


33,210











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






"Our performance in the third quarter further demonstrates our success in building a premier banking franchise for the long-term," said Jack Barnes, Chairman and Chief Executive Officer. "Strategic investments in talent and digital enhancements, along with thoughtful acquisitions, have broadened the Company's capabilities and continue to strengthen its earnings power. As such, we are pleased to report operating earnings of $135.5 million, an increase of 19 percent from a year ago and an operating return on average tangible common equity of 14.4 percent. The acquisition of United Financial is on track to close in the fourth quarter and we remain confident in achieving the transaction's attractive financial returns. The addition of United bolsters our already significant share of retail households and commercial clients across central Connecticut and western Massachusetts. We are excited for their long-tenured, well-established customer base to join People's United and benefit from our broader array of products, services and technology offerings."


"Third quarter financial results were highlighted by a stable net interest margin, continued strong fee income, well-maintained expenses and a lower effective tax rate," stated David Rosato, Senior Executive Vice President and Chief Financial Offer. "Net interest margin of 3.12 percent was unchanged linked-quarter despite declining interest rates. The margin benefited from our proactive management of deposit costs and new business yields remaining higher than the total loan portfolio yield. Commercial period-end loans grew $505 million or two percent from June 30th primarily driven by mortgage warehouse lending, equipment finance and Boston commercial real estate. Conversely, retail period-end loans declined $281 million or two percent mostly due to our planned reduction of residential mortgages as we continue to remix the balance sheet with a focus on higher yielding portfolios. Period-end deposits declined $893 million or two percent partially due to second quarter ending balances including a $500 million short-term commercial deposit, which was withdrawn in July as expected. On an average basis, deposits were down one percent primarily driven by a reduction in savings and time balances, partially offset by an increase in non-interest bearing deposits."






















As of and for the Three Months Ended





Sep. 30, 2019


Jun. 30, 2019


Sep. 30, 2018











Asset Quality

















Net loan charge-offs


0.06%


0.05%


0.09%


to average total loans







Originated non-performing loans


0.48%


0.52%


0.53%


as a percentage of originated loans

























Returns

















Return on average assets1


1.05%


1.04%


1.06%


Return on average tangible common equity1

14.0%


14.1%


14.5%




















Capital Ratios

















People's United Financial, Inc.








Tangible common equity / tangible assets

7.8%


7.7%


7.6%


Tier 1 leverage


8.7%


8.7%


8.7%


Common equity tier 1


10.1%


10.1%


10.3%


Tier 1 risk-based


10.7%


10.7%


11.0%


Total risk-based


12.0%


12.0%


12.8%











People's United Bank, N.A.








Tier 1 leverage



8.8%


8.9%


9.2%


Common equity tier 1



10.8%


11.0%


11.6%


Tier 1 risk-based



10.8%


11.0%


11.6%


Total risk-based



12.2%


12.4%


13.6%











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



The Board of Directors declared a $0.1775 per common share quarterly dividend payable November 15, 2019 to shareholders of record on October 31, 2019. Based on the closing stock price on October 16, 2019, the dividend yield on People's United Financial common stock is 4.5 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 $52 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.


3Q 2019 Financial Highlights


Summary

  • Net income totaled $135.1 million, or $0.33 per common share.
  • Net interest income totaled $348.7 million in 3Q19 compared to $348.1 million in 2Q19.
  • Net interest margin unchanged from 2Q19 at 3.12% reflecting:
  • Provision for loan losses totaled $7.8 million.
  • Non-interest income totaled $106.0 million in 3Q19 compared to $106.3 million in 2Q19.
  • Non-interest expense totaled $281.4 million in 3Q19 compared to $278.4 million in 2Q19.
  • The effective income tax rate was 18.4% for 3Q19 and 20.0% for the first nine months of 2019, compared to 18.8% for the full-year of 2018.

Commercial Banking

  • Commercial loans totaled $27.5 billion at September 30, 2019, an increase of $505 million from June 30, 2019.
  • Average commercial loans totaled $26.9 billion in 3Q19, an increase of $422 million from 2Q19.
  • Commercial deposits totaled $14.9 billion at September 30, 2019 compared to $15.1 billion at June 30, 2019.
  • The ratio of originated non-performing commercial loans to originated commercial loans was 0.44% at September 30, 2019 compared to 0.48% at June 30, 2019.
  • Non-performing commercial assets, excluding acquired non-performing loans, totaled $118.3 million at September 30, 2019 compared to $117.6 million at June 30, 2019.
  • For the originated commercial loan portfolio, the allowance for loan losses as a percentage of loans was 0.89% at September 30, 2019 compared to 0.91% at June 30, 2019.
  • The originated commercial allowance for loan losses represented 205% of originated non-performing commercial loans at September 30, 2019 compared to 190% at June 30, 2019.

Retail Banking

  • Residential mortgage loans totaled $9.3 billion at September 30, 2019, a decrease of $224 million from June 30, 2019.
  • Home equity loans totaled $2.0 billion at September 30, 2019, a decrease of $53 million from June 30, 2019.
  • Retail deposits totaled $23.7 billion at September 30, 2019 compared to $24.4 billion at June 30, 2019.
  • The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 0.55% at September 30, 2019 compared to 0.57% at June 30, 2019.
  • The ratio of originated non-performing home equity loans to originated home equity loans was 0.85% at September 30, 2019 compared to 0.86% at June 30, 2019.
  • For the originated retail loan portfolio, the allowance for loan losses as a percentage of loans was 0.35% at September 30, 2019 compared to 0.34% at June 30, 2019.
  • The originated retail allowance for loan losses represented 57% of originated non-performing retail loans at September 30, 2019 compared to 55% at June 30, 2019.




Conference Call

On October 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






























Three Months Ended








Sept. 30,


June 30,


March 31,


Dec. 31,


Sept. 30,


(dollars in millions, except per common share data)


2019


2019


2019


2018


2018


Earnings Data:












Net interest income (fully taxable equivalent)

$

356.0

$

355.4

$

340.0

$

339.5

$

313.0


Net interest income


348.7


348.1


332.8


332.6


306.4


Provision for loan losses


7.8


7.6


5.6


9.9


8.2


Non-interest income (1)


106.0


106.3


94.6


88.7


92.3


Non-interest expense (1)


281.4


278.4


277.2


262.7


241.3


Income before income tax expense


165.5


168.4


144.6


148.7


149.2


Net income


135.1


133.2


114.6


132.9


117.0


Net income available to common shareholders (1)


131.6


129.7


111.1


129.4


113.5














Selected Statistical Data:












Net interest margin (2)


3.12

%

3.12

%

3.20

%

3.17

%

3.15

%

Return on average assets (1), (2)


1.05


1.04


0.96


1.11


1.06


Return on average common equity (2)


7.7


7.7


7.0


8.3


8.0


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


14.0


14.1


13.0


14.9


14.5


Efficiency ratio (1)


56.8


55.8


57.3


55.1


56.7














Common Share Data:












Earnings per common share:












Basic

$

0.34

$

0.33

$

0.30

$

0.35

$

0.33


Diluted (1)


0.33


0.33


0.30


0.35


0.33


Dividends paid per common share


0.1775


0.1775


0.1750


0.1750


0.1750


Common dividend payout ratio (1)


53.1

%

53.8

%

58.6

%

50.3

%

52.9

%

Book value per common share (end of period)

$

17.54

$

17.34

$

17.13

$

16.95

$

16.69


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

9.74


9.51


9.35


9.23


9.19


Stock price:












High


17.10


17.66


18.03


17.46


19.00


Low


13.81


15.24


14.25


13.66


16.95


Close (end of period)


15.64


16.78


16.44


14.43


17.12


Common shares (end of period) (in millions)


392.57


392.24


372.18


371.02


342.36


Weighted average diluted common shares (in millions)

394.45


394.57


374.09


372.83


345.04














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










(2) Annualized.

































People's United Financial, Inc.






FINANCIAL HIGHLIGHTS















Nine Months Ended






September 30,



(dollars in millions, except per common share data)


2019


2018


Earnings Data:






Net interest income (fully taxable equivalent)

$

1,051.4

$

922.9


Net interest income


1,029.6


903.4


Provision for loan losses


21.0


20.1


Non-interest income


306.9


277.6


Non-interest expense (1)


837.0


733.4


Income before income tax expense


478.5


427.5


Net income


383.0


335.1


Net income available to common shareholders (1)


372.5


324.6








Selected Statistical Data:






Net interest margin (2)


3.14

%

3.10

%

Return on average assets (1), (2)


1.02


1.01


Return on average common equity (2)


7.5


7.7


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


13.7


14.1


Efficiency ratio (1)


56.6


58.2








Common Share Data:






Earnings per common share:






Basic

$

0.97

$

0.95


Diluted (1)


0.96


0.94


Dividends paid per common share


0.5300


0.5225


Common dividend payout ratio (1)


55.0

%

55.1

%

Book value per common share (end of period)

$

17.54

$

16.69


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


9.74


9.19


Stock price:






High


18.03


20.26


Low


13.81


16.95


Close (end of period)


15.64


17.12


Common shares (end of period) (in millions)


392.57


342.36


Weighted average diluted common shares (in millions)


387.78


344.50








(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)


2019


2019


2019


2018


2018


Financial Condition Data:












Total assets

$

52,072

$

51,622

$

48,092

$

47,877

$

44,133


Loans


38,781


38,557


35,515


35,241


32,199


Securities


7,135


7,086


7,176


7,233


7,385


Short-term investments


158


275


106


266


128


Allowance for loan losses


246


244


241


240


238


Goodwill and other acquisition-related intangible assets

3,065


3,073


2,897


2,866


2,569


Deposits


38,574


39,467


36,901


36,159


33,210


Borrowings


4,629


3,400


2,860


3,593


3,392


Notes and debentures


916


912


902


896


886


Stockholders' equity


7,131


7,046


6,621


6,534


5,959


Total risk-weighted assets (1):












People's United Financial, Inc.


39,779


39,026


36,466


35,910


33,181


People's United Bank, N.A.


39,727


38,976


36,447


35,875


33,132


Non-performing assets (2)


182


179


167


186


173


Net loan charge-offs


5.8


4.5


5.1


7.5


7.0














Average Balances:












Loans

$

38,317

$

38,229

$

35,046

$

35,016

$

32,166


Securities (3)


7,041


7,147


7,311


7,479


7,404


Short-term investments


219


214


203


292


193


Total earning assets


45,577


45,591


42,560


42,786


39,763


Total assets


51,524


51,088


47,800


47,721


44,245


Deposits


38,657


39,211


36,450


35,959


33,058


Borrowings


3,855


3,146


2,937


3,456


3,539


Notes and debentures


914


904


896


886


888


Total funding liabilities


43,427


43,261


40,284


40,302


37,485


Stockholders' equity


7,079


6,978


6,562


6,515


5,937














Ratios:












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

0.06

%

0.05

%

0.06

%

0.09

%

0.09

%

Non-performing assets to originated loans,












real estate owned and repossessed assets (2)


0.56


0.56


0.54


0.61


0.57


Originated allowance for loan losses to:












Originated loans (2)


0.75


0.76


0.76


0.77


0.78


Originated non-performing loans (2)


156.0


146.0


157.0


140.9


147.9


Average stockholders' equity to average total assets


13.7


13.7


13.7


13.7


13.4


Stockholders' equity to total assets


13.7


13.6


13.8


13.6


13.5


Tangible common equity to tangible assets (4)


7.8


7.7


7.7


7.6


7.6


Total risk-based capital (1):












People's United Financial, Inc.


12.0


12.0


12.4


12.5


12.8


People's United Bank, N.A.


12.2


12.4


12.9


13.2


13.6














(1) September 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











Sept. 30,

June 30,

Dec. 31,

Sept. 30,

(in millions)

2019

2019

2018

2018

Assets





Cash and due from banks

$ 635.2

$ 505.9

$ 665.7

$ 410.5

Short-term investments

157.8

274.8

266.3

127.5

Securities:





Trading debt securities, at fair value

9.3

9.3

8.4

8.3

Equity securities, at fair value

7.8

8.5

8.1

8.9

Debt securities available-for-sale, at fair value

2,978.7

2,971.2

3,121.0

3,312.1

Debt securities held-to-maturity, at amortized cost

3,805.4

3,807.5

3,792.3

3,742.9

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

334.0

289.4

303.4

312.4

Total securities

7,135.2

7,085.9

7,233.2

7,384.6

Loans held-for-sale

24.8

17.4

19.5

15.2

Loans:





Commercial real estate

12,186.9

12,230.7

11,649.6

10,595.5

Commercial and industrial

10,545.9

10,121.8

9,088.9

8,568.6

Equipment financing

4,735.6

4,611.0

4,339.2

4,209.3

Total Commercial Portfolio

27,468.4

26,963.5

25,077.7

23,373.4

Residential mortgage

9,308.7

9,532.6

8,154.2

6,911.9

Home equity and other consumer

2,004.3

2,060.6

2,009.5

1,914.0

Total Retail Portfolio

11,313.0

11,593.2

10,163.7

8,825.9

Total loans

38,781.4

38,556.7

35,241.4

32,199.3

Less allowance for loan losses

(246.0)

(244.0)

(240.4)

(238.0)

Total loans, net

38,535.4

38,312.7

35,001.0

31,961.3

Goodwill and other acquisition-related intangible assets

3,064.9

3,072.9

2,865.7

2,568.9

Bank-owned life insurance

505.6

504.4

467.0

407.7

Premises and equipment, net

258.5

261.0

267.3

243.8

Other assets

1,754.4

1,587.5

1,091.6

1,013.7

Total assets

$ 52,071.8

$ 51,622.5

$ 47,877.3

$ 44,133.2






Liabilities





Deposits:





Non-interest-bearing

$ 9,129.3

$ 8,747.2

$ 8,543.0

$ 8,060.2

Savings

4,616.6

4,847.4

4,116.5

4,048.8

Interest-bearing checking and money market

16,727.2

17,424.8

16,583.3

15,065.3

Time

8,100.4

8,447.9

6,916.2

6,035.9

Total deposits

38,573.5

39,467.3

36,159.0

33,210.2

Borrowings:





Federal Home Loan Bank advances

2,948.5

2,054.4

2,404.5

2,369.7

Federal funds purchased

1,365.0

1,110.0

845.0

735.0

Customer repurchase agreements

315.6

235.2

332.9

261.3

Other borrowings

-

-

11.0

26.0

Total borrowings

4,629.1

3,399.6

3,593.4

3,392.0

Notes and debentures

915.7

911.5

895.8

885.6

Other liabilities

822.8

797.9

695.2

686.5

Total liabilities

44,941.1

44,576.3

41,343.4

38,174.3






Stockholders' Equity





Preferred stock

244.1

244.1

244.1

244.1

Common stock

4.9

4.9

4.7

4.4

Additional paid-in capital

6,901.5

6,890.7

6,549.3

6,054.3

Retained earnings

1,449.3

1,388.1

1,284.8

1,220.9

Unallocated common stock of Employee Stock Ownership Plan, at cost

(124.7)

(126.5)

(130.1)

(131.9)

Accumulated other comprehensive loss

(182.3)

(193.0)

(256.8)

(270.8)

Treasury stock, at cost

(1,162.1)

(1,162.1)

(1,162.1)

(1,162.1)

Total stockholders' equity

7,130.7

7,046.2

6,533.9

5,958.9

Total liabilities and stockholders' equity

$ 52,071.8

$ 51,622.5

$ 47,877.3

$ 44,133.2







































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)

2019


2019


2019


2018


2018

Interest and dividend income:










Commercial real estate

$ 136.6


$ 139.9


$ 132.7


$ 130.2


$ 114.7

Commercial and industrial

113.4


111.4


103.9


100.1


93.2

Equipment financing

65.3


62.8


59.0


56.7


56.2

Residential mortgage

84.7


85.5


70.7


70.2


56.0

Home equity and other consumer

24.7


25.7


24.9


24.4


22.0

Total interest on loans

424.7


425.3


391.2


381.6


342.1

Securities

44.7


46.2


47.8


48.5


46.6

Short-term investments

1.3


1.2


1.3


1.4


1.1

Loans held-for-sale

0.2


0.1


0.2


0.3


0.2

Total interest and dividend income

470.9


472.8


440.5


431.8


390.0

Interest expense:










Deposits

92.2


96.6


81.2


70.6


56.9

Borrowings

21.5


19.3


17.7


20.0


18.2

Notes and debentures

8.5


8.8


8.8


8.6


8.5

Total interest expense

122.2


124.7


107.7


99.2


83.6

Net interest income

348.7


348.1


332.8


332.6


306.4

Provision for loan losses

7.8


7.6


5.6


9.9


8.2

Net interest income after provision for loan losses

340.9


340.5


327.2


322.7


298.2

Non-interest income:










Bank service charges

27.0


26.4


25.2


26.9


24.9

Investment management fees

17.3


17.1


16.5


16.4


17.4

Operating lease income

13.0


12.7


12.7


12.0


11.0

Commercial banking lending fees

11.8


10.2


7.8


9.6


7.9

Insurance revenue

10.3


8.7


10.5


6.7


9.8

Cash management fees

7.3


7.2


6.8


6.6


7.0

Customer interest rate swap income, net

5.6


7.6


3.0


6.3


2.8

Brokerage commissions

2.6


2.6


2.8


3.3


3.2

Net security gains (losses) (1)

-


0.1


-


(10.0)


0.1

Other non-interest income

11.1


13.7


9.3


10.9


8.2

Total non-interest income

106.0


106.3


94.6


88.7


92.3

Non-interest expense:










Compensation and benefits

158.1


161.3


155.4


151.5


135.7

Occupancy and equipment

45.0


44.4


44.3


44.6


41.6

Professional and outside services

23.7


24.9


20.0


21.4


17.0

Operating lease expense

9.9


9.9


9.4


9.8


8.9

Amortization of other acquisition-related intangible assets

8.0


8.0


6.7


6.9


4.9

Regulatory assessments

5.3


6.5


7.0


7.4


10.0

Other non-interest expense

31.4


23.4


34.4


21.1


23.2

Total non-interest expense (1)

281.4


278.4


277.2


262.7


241.3

Income before income tax expense

165.5


168.4


144.6


148.7


149.2

Income tax expense (1)

30.4


35.2


30.0


15.8


32.2

Net income

135.1


133.2


114.6


132.9


117.0

Preferred stock dividend

3.5


3.5


3.5


3.5


3.5

Net income available to common shareholders

$ 131.6


$ 129.7


$ 111.1


$ 129.4


$ 113.5











Earnings per common share:










Basic

$ 0.34


$ 0.33


$ 0.30


$ 0.35


$ 0.33

Diluted

0.33


0.33


0.30


0.35


0.33











(1) Net security gains (losses) for the three months ended December 31, 2018 include $10.0 million of security losses, 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 $5.0 million, $6.5 million, $15.0 million, $8.0 million and $0.5 million of non-operating expenses

for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018,

respectively. Income tax expense for the three months ended December 31, 2018 includes a $9.2 million benefit recognized in

connection with tax reform, which is considered non-operating. See Non-GAAP Financial Measures and Reconciliation to GAAP.
















People's United Financial, Inc.




CONSOLIDATED STATEMENTS OF INCOME









Nine Months Ended


September 30,

(in millions, except per common share data)

2019


2018

Interest and dividend income:




Commercial real estate

$ 409.2


$ 333.2

Commercial and industrial

328.7


265.6

Equipment financing

187.0


155.6

Residential mortgage

240.9


166.0

Home equity and other consumer

75.4


64.2

Total interest on loans

1,241.2


984.6

Securities

138.7


135.7

Short-term investments

3.8


3.6

Loans held for sale

0.6


0.6

Total interest and dividend income

1,384.3


1,124.5

Interest expense:




Deposits

270.0


145.5

Borrowings

58.6


50.9

Notes and debentures

26.1


24.7

Total interest expense

354.7


221.1

Net interest income

1,029.6


903.4

Provision for loan losses

21.0


20.1

Net interest income after provision for loan losses

1,008.6


883.3

Non-interest income:




Bank service charges

78.6


73.0

Investment management fees

50.9


52.3

Operating lease income

38.4


32.9

Commercial banking lending fees

29.8


27.7

Insurance revenue

29.5


27.9

Cash management fees

21.2


20.6

Customer interest rate swap income, net

16.2


8.3

Brokerage commissions

8.0


9.5

Other non-interest income

34.3


25.4

Total non-interest income

306.9


277.6

Non-interest expense:




Compensation and benefits

474.8


411.4

Occupancy and equipment

133.7


123.6

Professional and outside services

68.6


56.2

Operating lease expense

29.2


26.6

Amortization of other acquisition-related intangible assets

22.7


14.9

Regulatory assessments

18.8


30.5

Other non-interest expense

89.2


70.2

Total non-interest expense (1)

837.0


733.4

Income before income tax expense

478.5


427.5

Income tax expense

95.5


92.4

Net income

383.0


335.1

Preferred stock dividend

10.5


10.5

Net income available to common shareholders

$ 372.5


$ 324.6





Earnings per common share:




Basic

$ 0.97


$ 0.95

Diluted

0.96


0.94





(1) Total non-interest expense includes $26.5 million and $3.4 million of non-operating expenses for the

nine months ended September 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)




















September 30, 2019


June 30, 2019


September 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

$ 218.7

$ 1.3

2.33%


$ 214.1

$ 1.2

2.21%


$ 192.5

$ 1.1

2.06%

Securities (2)

7,041.3

49.4

2.80


7,147.1

50.8

2.85


7,404.2

50.8

2.75

Loans:












Commercial real estate

12,194.8

136.6

4.48


12,323.2

139.9

4.54


10,641.4

114.7

4.31

Commercial and industrial

10,059.2

116.0

4.61


9,638.2

114.1

4.74


8,584.8

95.6

4.45

Equipment financing

4,640.6

65.3

5.63


4,510.8

62.8

5.56


4,120.8

56.2

5.47

Residential mortgage

9,392.7

84.9

3.62


9,672.6

85.6

3.54


6,887.3

56.2

3.27

Home equity and other consumer

2,029.2

24.7

4.88


2,084.6

25.7

4.94


1,931.8

22.0

4.55

Total loans

38,316.5

427.5

4.46


38,229.4

428.1

4.48


32,166.1

344.7

4.29

Total earning assets

45,576.5

$ 478.2

4.20%


45,590.6

$ 480.1

4.21%


39,762.8

$ 396.6

3.99%

Other assets

5,947.8




5,496.9




4,481.8



Total assets

$ 51,524.3




$ 51,087.5




$ 44,244.6















Liabilities and stockholders' equity:












Deposits:












Non-interest-bearing

$ 8,777.3

$ -

- %


$ 8,605.6

$ -

- %


$ 8,025.2

$ -

- %

Savings, interest-bearing checking












and money market

21,758.5

53.4

0.98


22,341.3

57.4

1.03


19,031.4

32.6

0.68

Time

8,121.6

38.8

1.91


8,263.8

39.2

1.90


6,001.3

24.3

1.62

Total deposits

38,657.4

92.2

0.95


39,210.7

96.6

0.99


33,057.9

56.9

0.69

Borrowings:












Federal Home Loan Bank advances

2,363.0

14.1

2.39


1,844.0

12.2

2.64


2,560.6

14.0

2.18

Federal funds purchased

1,202.3

6.8

2.26


1,057.8

6.7

2.53


722.7

3.8

2.11

Customer repurchase agreements

290.1

0.6

0.86


240.0

0.4

0.77


...