People's United Financial Reports Fourth Quarter Net Income Of $0.23 Per Share And Operating Earnings Of $0.22 Per Share

21 Jan, 2016, 16:02 ET from People's United Financial, Inc.

BRIDGEPORT, Conn., Jan. 21, 2016 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported net income of $70.8 million, or $0.23 per share, for the fourth quarter of 2015, compared to $64.7 million, or $0.22 per share, for the fourth quarter of 2014, and $68.4 million, or $0.23 per share, for the third quarter of 2015. Included in this quarter's results is a net after-tax gain of $6.1 million ($0.02 per share) resulting from the sale of the Company's payroll services business as well as non-operating expenses of $2.5 million after-tax ($0.01 per share).

Operating earnings were $67.2 million, or $0.22 per share, for the fourth quarter of 2015, compared to $65.1 million, or $0.22 per share, for the fourth quarter of 2014, and $68.4 million, or $0.23 per share, for the third quarter of 2015.

For the year ended December 31, 2015, net income totaled $260.1 million, or $0.86 per share, compared to $251.7 million, or $0.84 per share, for 2014.  Operating earnings were $262.5 million, or $0.87 per share, for 2015, compared to $244.5 million, or $0.82 per share, for 2014.

The Company's Board of Directors declared a $0.1675 per share quarterly dividend, payable February 15, 2016 to shareholders of record on February 1, 2016.  Based on the closing stock price on January 20, 2016, the dividend yield on People's United Financial common stock is 4.6 percent.

"We are pleased to report growth in full-year operating earnings per share for the sixth consecutive year, particularly given the prolonged low interest rate environment," commented Jack Barnes, President and Chief Executive Officer. "These results are driven by the strategic investments we have made in talent, products and services. Throughout 2015, we continued to move the Company forward by organically growing loans and deposits, strengthening fee businesses, implementing technology enhancements and furthering cross-sell efforts."

Barnes continued, "As we continually evaluate the best ways to serve customers and improve operating efficiency, we sold our payroll services business in the fourth quarter to the Company's current payroll software licensor and entered into a long-term referral agreement. The sale provides customers high-quality payroll solutions at comparable costs and minimal transition impact."

Barnes concluded, "Entering 2016, the franchise is well-positioned to achieve ongoing growth as we continue to execute on the significant opportunities that exist across our attractive footprint, especially within the Boston and New York markets. We remain focused on improving profitability, while continuing to build the business for long-term success."

"Our 2015 financial performance reflects ongoing revenue growth and proactive expense management," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "Record full year operating earnings of $263 million increased over seven percent from the prior year and benefited from both higher net interest income and fee revenues. We achieved strong annual loan and deposit growth of seven percent and nine percent, respectively. At the same time we maintained excellent asset quality across each portfolio as evidenced by net charge-offs as a percentage of average loans of only eight basis points for the full year."

Rosato concluded, "Capital ratios continue to be strong, especially given the Company's diversified business mix and history of exceptional credit risk management. Our balance sheet remains asset sensitive which positions us well to benefit from a rising interest rate environment."

At December 31, 2015, People's United Financial's common equity tier 1 capital and total risk-based capital ratios were 9.8 percent and 11.7 percent, respectively, and the tangible equity ratio stood at 7.2 percent.  For People's United Bank N.A., common equity tier 1 capital and total risk-based capital ratios were 10.2 percent and 12.6 percent, respectively, at December 31, 2015.

Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.09 percent in the fourth quarter of 2015, a slight increase from 0.06 percent in the third quarter of 2015, but an improvement from 0.13 percent in the fourth quarter of 2014.  For the originated loan portfolio, non-performing loans equaled 0.58 percent of loans at December 31, 2015, compared to 0.68 percent at September 30, 2015 and 0.77 percent at December 31, 2014.

Operating return on average assets of 0.71 percent for the fourth quarter of 2015 declined from 0.73 percent in the third quarter of 2015 and 0.75 percent in the fourth quarter of 2014.  Operating return on average tangible stockholders' equity of 10.2 percent in the fourth quarter of 2015 declined from 10.5 percent in the third quarter of 2015, but increased from 10.1 percent in the fourth quarter of 2014.

People's United Financial, a diversified financial services company with $39 billion in assets, provides commercial and retail banking, as well as wealth management services through a network of approximately 400 branches in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine.  Through its subsidiaries, People's United Financial provides equipment financing, brokerage and insurance services.  Assets managed and administered, which are not reported as assets of People's United Financial, totaled $15.4 billion at December 31, 2015 compared to $15.1 billion at September 30, 2015.

4Q 2015 Financial Highlights

Summary

  • Net income totaled $70.8 million, or $0.23 per share.
    • Operating earnings totaled $67.2 million, or $0.22 per share.
  • Net interest income totaled $238.8 million in 4Q15 compared to $234.8 million in 3Q15.
    • Interest income on acquired loans decreased $0.7 million to $12.6 million.
  • Net interest margin of 2.87% unchanged from 3Q15 reflecting:
    • Increase in average investment balances (increase of one basis point).
    • New loan volume at rates lower than the existing portfolio (decrease of one basis point).
  • Provision for loan losses totaled $9.7 million.
    • Net loan charge-offs totaled $6.2 million, of which $3.3 million related to loans with previously-established specific reserves.
    • Net loan charge-off ratio of 0.09% in 4Q15.
    • Reflects an $8.1 million increase in the originated allowance for loan losses due to loan growth and a $1.3 million allowance reversal related to acquired loans.
  • Non-interest income was $93.3 million in 4Q15 compared to $87.1 million in 3Q15.
    • Gain on sale of the payroll services business totaled $9.2 million in 4Q15.
    • Insurance revenue decreased $1.6 million.
    • Bank service charges decreased $1.4 million.
    • Commercial banking lending fees decreased $1.1 million.
    • Assets under administration and those under full discretionary management, neither of which are reported as assets of People's United Financial, totaled $9.8 billion and $5.6 billion, respectively, at December 31, 2015, compared to $9.7 billion and $5.4 billion, respectively, at September 30, 2015.
  • Non-interest expense totaled $217.0 million in 4Q15 compared to $214.2 million in 3Q15.
    • Operating non-interest expense was $213.2 million in 4Q15 compared to $214.1 million in 3Q15.
    • Compensation and benefits decreased $1.4 million, primarily reflecting lower payroll and benefit-related costs in 4Q15.
    • Regulatory assessments expense decreased $2.4 million.
    • Professional and outside services expense increased $0.9 million.
    • The efficiency ratio was 61.0% in 4Q15 compared to 61.7% in 3Q15.
    • Non-operating expenses totaled $3.8 million in 4Q15 compared to $0.1 million in 3Q15.
  • The effective income tax rate was 32.8% for 4Q15 and 33.4% for the full-year of 2015, compared to 33.9% for the full-year of 2014 (33.5% for 4Q14).

Commercial Banking

  • Commercial loans increased $652 million, or 13% annualized, from September 30, 2015.
    • Excluding the mortgage warehouse portfolio, commercial loans increased $528 million, or 11% annualized, in 4Q15.
  • Average commercial loans totaled $20.2 billion in 4Q15, an increase of $196 million, or 4% annualized, from 3Q15.
  • The ratio of originated non-performing commercial loans to originated commercial loans was 0.51% at December 31, 2015 compared to 0.64% at September 30, 2015.
    • Non-performing commercial assets, excluding acquired non-performing loans, totaled $117.6 million at December 31, 2015 compared to $139.6 million at September 30, 2015.
  • Net loan charge-offs totaled $4.8 million, or 0.09% annualized, of average commercial loans in 4Q15, compared to $2.9 million, or 0.06% annualized, in 3Q15.
  • For the originated commercial portfolio, the allowance for loan losses as a percentage of loans was 0.90% at December 31, 2015 compared to 0.91% at September 30, 2015.
  • The commercial originated allowance for loan losses represented 177% of originated non-performing commercial loans at December 31, 2015 compared to 143% at September 30, 2015.
  • Commercial deposits totaled $8.9 billion at December 31, 2015 compared to $9.0 billion at September 30, 2015.

Retail Banking

  • Residential mortgage loans increased $76 million, or 6% annualized, from September 30, 2015.
    • Average residential mortgage loans totaled $5.4 billion in 4Q15, an increase of $153 million, or 12% annualized, from 3Q15.
    • The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 0.71% at December 31, 2015 compared to 0.74% at September 30, 2015.
    • Net loan charge-offs totaled $0.1 million, or less than 0.01% annualized, of average residential mortgage loans in 4Q15, compared to $0.4 million, or 0.03% annualized, in 3Q15.
  • Home equity loans increased $12 million, or 2% annualized, from September 30, 2015.
    • Average home equity loans totaled $2.1 billion in 4Q15, unchanged from 3Q15.
    • The ratio of originated non-performing home equity loans to originated home equity loans was 0.92% at December 31, 2015 compared to 1.00% at September 30, 2015.
    • Net loan charge-offs totaled $1.1 million, or 0.22% annualized, of average home equity loans in 4Q15, compared to $0.6 million, or 0.11% annualized, in 3Q15.
  • Retail deposits (excluding brokered deposits) totaled $16.9 billion at December 31, 2015 compared to $16.6 billion at September 30, 2015.

Conference Call

On January 21, 2016, 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, 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; and (9) 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

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

(dollars in millions, except per share data)

2015

2015

2015

2015

2014

Earnings Data:

  Net interest income (fully taxable equivalent)

$

245.3

$

241.1

$

237.0

$

233.9

$

233.2

  Net interest income 

238.8

234.8

230.4

228.1

228.1

  Provision for loan losses

9.7

6.2

7.7

9.8

9.9

  Non-interest income (1)

93.3

87.1

83.0

89.0

86.8

  Non-interest expense

217.0

214.2

211.8

217.6

207.7

  Operating non-interest expense (2)

213.2

214.1

208.8

211.6

207.1

  Income before income tax expense

105.4

101.5

93.9

89.7

97.3

  Net income

70.8

68.4

61.7

59.2

64.7

  Operating earnings (2)

67.2

68.4

63.7

63.2

65.1

Selected Statistical Data:

  Net interest margin (3)

2.87

%

2.87

%

2.88

%

2.91

%

3.00

%

  Return on average assets (3)

0.75

0.73

0.67

0.66

0.74

  Operating return on average assets (2), (3)

0.71

0.73

0.70

0.71

0.75

  Return on average tangible assets (3)

0.79

0.78

0.71

0.70

0.79

  Return on average stockholders' equity (3)

6.0

5.8

5.3

5.1

5.5

  Return on average tangible stockholders' equity (3)

10.7

10.5

9.5

9.2

10.1

  Operating return on average tangible

    stockholders' equity (2), (3)

10.2

10.5

9.8

9.9

10.1

  Efficiency ratio (2)

61.0

61.7

61.6

61.9

61.3

Common Share Data:

  Basic and diluted earnings per share

$

0.23

$

0.23

$

0.20

$

0.20

$

0.22

  Operating earnings per share (2)

0.22

0.23

0.21

0.21

0.22

  Dividends paid per share

0.1675

0.1675

0.1675

0.165

0.165

  Dividend payout ratio

71.5

%

73.9

%

81.8

%

83.7

%

76.5

%

  Operating dividend payout ratio (2)

75.3

73.9

79.2

78.3

76.0

  Book value per share (end of period)

$

15.62

$

15.64

$

15.51

$

15.55

$

15.44

  Tangible book value per share (end of period) (2)

8.73

8.75

8.59

8.58

8.43

  Stock price:

    High

16.93

16.95

16.64

15.45

15.50

    Low

15.00

14.69

14.92

13.97

13.61

    Close (end of period)

16.15

15.73

16.21

15.20

15.18

  Common shares (end of period) (in millions)

302.86

302.39

302.11

301.18

300.13

  Weighted average diluted common shares (in millions)

301.38

301.00

300.09

299.15

298.65

(1)

Three months ended December 31, 2015 includes a $9.2 million net gain resulting from the sale of People's United Bank's payroll services business.           

(2)

See Non-GAAP Financial Measures and Reconciliation to GAAP.           

(3)

Annualized.  

 

 

People's United Financial, Inc.

FINANCIAL HIGHLIGHTS

Twelve Months Ended

December 31,

(dollars in millions, except per share data)

2015

2014

Earnings Data:

  Net interest income (fully taxable equivalent)

$

957.3

$

931.1

  Net interest income 

932.1

911.9

  Provision for loan losses

33.4

40.6

  Non-interest income (1)

352.4

350.8

  Non-interest expense

860.6

841.5

  Operating non-interest expense (2)

847.7

832.0

  Income before income tax expense

390.5

380.6

  Net income

260.1

251.7

  Operating earnings (2)

262.5

244.5

Selected Statistical Data:

  Net interest margin

2.88

%

3.09

%

  Return on average assets

0.71

0.75

  Operating return on average assets (2)

0.71

0.72

  Return on average tangible assets

0.75

0.80

  Return on average stockholders' equity

5.5

5.4

  Return on average tangible stockholders' equity

10.0

10.0

  Operating return on average tangible stockholders' equity (2)

10.1

9.7

  Efficiency ratio (2)

61.5

62.1

Common Share Data:

  Basic and diluted earnings per share

$

0.86

$

0.84

  Operating earnings per share (2)

0.87

0.82

  Dividends paid per share

0.6675

0.6575

  Dividend payout ratio

77.3

%

78.2

%

  Operating dividend payout ratio (2)

76.6

80.6

  Book value per share (end of period)

$

15.62

$

15.44

  Tangible book value per share (end of period) (2)

8.73

8.43

  Stock price:

    High

16.95

15.70

    Low

13.97

13.61

    Close (end of period)

16.15

15.18

  Common shares (end of period) (in millions)

302.86

300.13

  Weighted average diluted common shares (in millions)

300.41

298.26

(1)

Includes a $9.2 million net gain resulting from the sale of People's United Bank's payroll services business and a $20.6 million net gain resulting from the formation of a merchant services joint venture for the twelve months ended December 31, 2015 and 2014, respectively.      

(2)

See Non-GAAP Financial Measures and Reconciliation to GAAP.    

  

 

 

People's United Financial, Inc.

FINANCIAL HIGHLIGHTS - Continued

As of and for the Three Months Ended

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

(dollars in millions)

2015

2015

2015

2015

2014

Financial Condition Data:

    Total assets

$

38,877

$

37,478

$

37,183

$

36,407

$

35,997

    Loans 

28,411

27,672

27,562

26,929

26,592

    Securities

6,449

5,921

5,756

5,577

5,012

    Short-term investments (1)

380

245

196

250

769

    Allowance for loan losses

211

208

205

201

198

    Goodwill and other acquisition-related intangible assets

2,088

2,085

2,091

2,097

2,103

    Deposits

28,417

28,280

27,435

27,150

26,138

    Borrowings

4,307

2,997

3,563

3,143

3,692

    Notes and debentures

1,039

1,045

1,030

1,042

1,034

    Stockholders' equity

4,732

4,731

4,686

4,682

4,633

    Total risk-weighted assets (2):

       People's United Financial, Inc.

29,678

28,990

28,688

28,100

27,513

       People's United Bank

29,653

28,953

28,648

28,084

27,454

    Non-performing assets (3)

182

210

221

209

224

    Net loan charge-offs

6.2

4.1

3.2

7.2

8.5

Average Balances:

    Loans

$

27,853

$

27,496

$

27,125

$

26,504

$

26,136

    Securities (4)

6,133

5,880

5,577

5,325

4,718

    Short-term investments (1)

247

245

223

276

276

    Total earning assets

34,233

33,621

32,925

32,105

31,130

    Total assets

37,906

37,257

36,617

35,768

34,763

    Deposits

28,481

27,810

27,236

26,579

25,781

    Borrowings

3,187

3,304

3,215

3,018

2,854

    Notes and debentures

1,043

1,034

1,040

1,041

1,027

    Total funding liabilities

32,711

32,148

31,491

30,638

29,662

    Stockholders' equity

4,736

4,700

4,689

4,663

4,679

Ratios:

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

0.09

%

0.06

%

0.05

%

0.11

%

0.13

%

    Non-performing assets to originated loans,

      real estate owned and repossessed assets (3)

0.66

0.78

0.83

0.80

0.88

    Originated allowance for loan losses to:

      Originated loans (3)

0.73

0.74

0.73

0.74

0.74

      Originated non-performing loans (3)

127.3

108.1

102.9

107.5

95.5

    Average stockholders' equity to average total assets

12.5

12.6

12.8

13.0

13.5

    Stockholders' equity to total assets

12.2

12.6

12.6

12.9

12.9

    Tangible stockholders' equity to tangible assets (5)

7.2

7.5

7.4

7.5

7.5

    Total risk-based capital (2):

       People's United Financial, Inc.

11.7

11.8

11.8

11.9

12.2

       People's United Bank

12.6

12.8

12.9

13.1

13.0

(1)

Includes securities purchased under agreements to resell.             

(2)

Effective January 1, 2015, calculated in accordance with Basel III capital rules. December 31, 2015 amounts are preliminary.             

(3)

Excludes acquired loans.             

(4)

Average balances for securities are based on amortized cost.             

(5)

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)

2015

2015

2015

2014

Assets

Cash and due from banks

$     334.8

$     300.3

$     362.8

$     345.1

Short-term investments

380.5

244.6

195.5

668.6

    Total cash and cash equivalents

715.3

544.9

558.3

1,013.7

Securities purchased under agreements to resell

-

-

-

100.0

Securities:

  Trading account securities, at fair value

6.7

8.3

8.3

8.3

  Securities available for sale, at fair value 

4,527.7

4,221.2

4,518.7

3,993.7

  Securities held to maturity, at amortized cost

1,609.6

1,377.1

913.6

834.3

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

305.4

314.7

315.1

175.7

    Total securities

6,449.4

5,921.3

5,755.7

5,012.0

Loans held for sale

34.5

36.2

56.8

34.2

Loans: 

  Commercial

10,722.0

10,313.3

10,580.9

10,055.1

  Commercial real estate

10,028.8

9,785.4

9,600.4

9,404.3

  Residential mortgage

5,457.0

5,381.4

5,191.6

4,932.0

  Consumer

2,203.1

2,192.1

2,189.4

2,200.6

    Total loans

28,410.9

27,672.2

27,562.3

26,592.0

  Less allowance for loan losses

(211.0)

(207.5)

(205.4)

(198.3)

    Total loans, net

28,199.9

27,464.7

27,356.9

26,393.7

Goodwill and other acquisition-related intangible assets

2,087.8

2,084.7

2,090.6

2,102.5

Bank-owned life insurance

346.5

345.6

345.9

343.3

Premises and equipment

257.8

258.7

262.9

277.8

Other assets

786.2

821.6

756.1

719.9

    Total assets

$ 38,877.4

$ 37,477.7

$ 37,183.2

$ 35,997.1

Liabilities

Deposits: 

  Non-interest-bearing

$   6,178.6

$   5,877.2

$   5,893.1

$   5,655.1

  Savings, interest-bearing checking and money market

17,420.7

17,236.6

16,084.2

15,252.4

  Time

4,818.1

5,165.9

5,457.5

5,230.7

    Total deposits

28,417.4

28,279.7

27,434.8

26,138.2

Borrowings:

  Federal Home Loan Bank advances

3,463.8

2,164.5

2,615.2

2,291.7

  Customer repurchase agreements

469.5

472.3

472.6

486.0

  Federal funds purchased

374.0

360.0

474.0

913.0

  Other borrowings

-

-

1.0

1.0

    Total borrowings

4,307.3

2,996.8

3,562.8

3,691.7

Notes and debentures

1,038.7

1,044.9

1,029.8

1,033.5

Other liabilities 

382.4

425.5

470.1

500.6

    Total liabilities

34,145.8

32,746.9

32,497.5

31,364.0

Stockholders' Equity

Common stock

3.9

3.9

3.9

3.9

Additional paid-in capital 

5,337.7

5,327.3

5,319.6

5,291.2

Retained earnings

880.8

861.0

843.8

826.7

Unallocated common stock of Employee Stock Ownership Plan, at cost

(151.8)

(153.6)

(155.4)

(159.0)

Accumulated other comprehensive loss

(177.2)

(146.1)

(164.5)

(168.2)

Treasury stock, at cost

(1,161.8)

(1,161.7)

(1,161.7)

(1,161.5)

    Total stockholders' equity

4,731.6

4,730.8

4,685.7

4,633.1

    Total liabilities and stockholders' equity

$ 38,877.4

$ 37,477.7

$ 37,183.2

$ 35,997.1

 

 

 

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 share data)

2015

2015

2015

2015

2014

Interest and dividend income:

  Commercial

$  92.7

$  92.5

$  90.3

$  88.9

$   89.1

  Commercial real estate

86.1

85.7

86.4

85.3

87.7

  Residential mortgage

43.0

41.9

40.3

40.2

39.8

  Consumer

18.1

18.1

18.0

18.1

18.7

    Total interest on loans

239.9

238.2

235.0

232.5

235.3

  Securities

33.8

31.2

29.0

27.5

24.0

  Loans held for sale

0.3

0.4

0.4

0.2

0.2

  Short-term investments

0.2

0.1

0.1

0.1

0.1

    Total interest and dividend income

274.2

269.9

264.5

260.3

259.6

Interest expense:

  Deposits 

24.6

24.8

23.9

22.2

21.7

  Borrowings 

3.3

2.9

2.7

2.6

2.4

  Notes and debentures

7.5

7.4

7.5

7.4

7.4

    Total interest expense

35.4

35.1

34.1

32.2

31.5

    Net interest income

238.8

234.8

230.4

228.1

228.1

Provision for loan losses 

9.7

6.2

7.7

9.8

9.9

    Net interest income after provision for loan losses

229.1

228.6

222.7

218.3

218.2

Non-interest income:

  Bank service charges

31.1

32.5

31.5

30.1

32.0

  Investment management fees

10.8

10.8

11.3

10.8

10.5

  Operating lease income

10.5

10.5

10.5

10.8

10.2

  Commercial banking lending fees

9.2

10.3

9.8

13.3

9.5

  Insurance revenue

7.5

9.1

6.5

7.6

6.6

  Customer interest rate swap income, net

3.6

3.4

2.2

5.3

3.2

  Brokerage commissions

3.1

3.1

3.2

3.2

3.4

  Net gains on sale of residential mortgage loans

1.3

1.5

2.0

0.7

1.0

  Net (losses) gains on sales of acquired loans

-

-

(0.2)

1.9

(0.3)

  Net security gains

-

-

-

-

2.7

  Gain on sale of business, net of expenses

9.2

-

-

-

-

  Other non-interest income

7.0

5.9

6.2

5.3

8.0

    Total non-interest income  (1)

93.3

87.1

83.0

89.0

86.8

Non-interest expense:

  Compensation and benefits 

112.0

113.4

109.3

114.8

108.2

  Occupancy and equipment 

37.0

37.0

36.8

38.7

36.3

  Professional and outside services

17.9

17.0

17.3

15.8

14.7

  Operating lease expense

9.4

9.2

9.2

9.3

8.9

  Regulatory assessments

7.1

9.5

9.2

9.3

9.4

  Amortization of other acquisition-related intangible assets

6.1

5.9

6.0

5.9

6.2

  Other non-interest expense

27.5

22.2

24.0

23.8

24.0

    Total non-interest expense (1)

217.0

214.2

211.8

217.6

207.7

    Income before income tax expense

105.4

101.5

93.9

89.7

97.3

Income tax expense

34.6

33.1

32.2

30.5

32.6

    Net income

$  70.8

$  68.4

$  61.7

$  59.2

$   64.7

Basic and diluted earnings per common share

$  0.23

$  0.23

$  0.20

$  0.20

$   0.22

(1)

Total non-interest income includes $9.2 million of non-operating income for the three months ended December 31, 2015. Total non-interest expense includes $3.8 million, $0.1 million, $3.0 million, $6.0 million and $0.6 million of non-operating expenses for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively. See Non-GAAP Financial Measures and Reconciliation to GAAP.

 

 

 

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF INCOME

Twelve Months Ended

December 31,

(in millions, except per share data)

2015

2014

Interest and dividend income:

  Commercial

$  364.4

$  351.0

  Commercial real estate

343.5

354.2

  Residential mortgage

165.4

153.5

  Consumer

72.3

73.9

    Total interest on loans

945.6

932.6

  Securities

121.5

96.8

  Loans held for sale

1.3

0.8

  Short-term investments

0.5

0.4

    Total interest and dividend income

1,068.9

1,030.6

Interest expense:

  Deposits 

95.5

80.9

  Borrowings 

11.5

11.1

  Notes and debentures

29.8

26.7

    Total interest expense

136.8

118.7

    Net interest income

932.1

911.9

Provision for loan losses 

33.4

40.6

    Net interest income after provision for loan losses

898.7

871.3

Non-interest income:

  Bank service charges

125.2

128.6

  Investment management fees

43.7

41.6

  Commercial banking lending fees

42.6

36.4

  Operating lease income

42.3

41.6

  Insurance revenue

30.7

29.9

  Customer interest rate swap income, net

14.5

8.6

  Brokerage commissions

12.6

13.6

  Net gains on sale of residential mortgage loans

5.5

2.9

  Net gains (losses) on sales of acquired loans

1.7

(0.9)

  Net security gains

-

3.0

  Gain on sale of business, net of expenses

9.2

20.6

  Other non-interest income

24.4

24.9

    Total non-interest income (1)

352.4

350.8

Non-interest expense:

  Compensation and benefits 

449.5

436.0

  Occupancy and equipment 

149.5

147.3

  Professional and outside services

68.0

59.2

  Operating lease expense

37.1

37.4

  Regulatory assessments

35.1

35.6

  Amortization of other acquisition-related intangible assets

23.9

24.8

  Other non-interest expense

97.5

101.2

    Total non-interest expense (1)

860.6

841.5

    Income before income tax expense

390.5

380.6

Income tax expense

130.4

128.9

    Net income

$  260.1

$  251.7

Basic and diluted earnings per common share

$    0.86

$    0.84

(1)

Total non-interest income includes $9.2 million and $20.6 million of non-operating income for the twelve months ended December 31, 2015 and 2014, respectively. Total non-interest expense includes $12.9 million and $9.5 million of non-operating expenses for the twelve months ended December 31, 2015 and 2014, respectively. See Non-GAAP Financial Measures and Reconciliation to GAAP.   

 

 

 

People's United Financial, Inc.

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

December 31, 2015

September 30, 2015

December 31, 2014

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 (2)

$     247.1

$    0.2

0.21%

$     245.3

$    0.1

0.19%

$     276.1

$    0.1

0.20%

Securities (3)

6,133.1

37.7

2.46

5,879.9

34.8

2.37

4,718.4

26.7

2.26

Loans:

  Commercial (4)

10,300.8

95.3

3.70

10,327.7

95.2

3.69

9,694.2

91.5

3.78

  Commercial real estate

9,911.1

86.1

3.48

9,688.4

85.7

3.54

9,368.8

87.7

3.75

  Residential mortgage

5,440.6

43.3

3.17

5,293.2

42.3

3.20

4,877.8

40.0

3.28

  Consumer

2,200.7

18.1

3.31

2,186.9

18.1

3.30

2,195.0

18.7

3.40

    Total loans

27,853.2

242.8

3.49

27,496.2

241.3

3.51

26,135.8

237.9

3.64

    Total earning assets

34,233.4

$280.7

3.28%

33,621.4

$276.2

3.29%

31,130.3

$264.7

3.40%

Other assets

3,672.4

3,635.6

3,633.1

    Total assets

$ 37,905.8

$ 37,257.0

$ 34,763.4

Liabilities and stockholders' equity:

Deposits:

  Non-interest-bearing

$   6,049.3

$      -

-   %

$   5,853.7

$      -

-   %

$   5,575.7

$      -

-   %

  Savings, interest-bearing checking

    and money market

17,453.7

11.6

0.27

16,634.9

11.1

0.27

15,035.6

9.8

0.26

  Time

4,977.6

13.0

1.05

5,321.6

13.7

1.03

5,169.5

11.9

0.92

    Total deposits

28,480.6

24.6

0.35

27,810.2

24.8

0.36

25,780.8

21.7

0.34

Borrowings:

  Federal Home Loan Bank advances

2,353.8

2.8

0.47

2,444.2

2.5

0.41

1,943.4

2.0

0.42

  Customer repurchase agreements

434.9

0.2

0.20

481.1

0.2

0.19

461.1

0.2

0.19

  Federal funds purchased

398.5

0.3

0.23

378.4

0.2

0.19

447.8

0.2

0.16

  Repurchase agreements

-

-

-

0.5

-

1.75

1.0

-

1.75

  Other borrowings  

-

-

-

-

-

-

0.3

-

-

    Total borrowings

3,187.2

3.3

0.40

3,304.2

2.9

0.35

2,853.6

2.4

0.34

Notes and debentures

1,043.3

7.5

2.89

1,034.1

7.4

2.88

1,027.5

7.4

2.90

    Total funding liabilities

32,711.1

$  35.4

0.43%

32,148.5

$  35.1

0.44%

29,661.9

$  31.5

0.43%

Other liabilities

458.7

408.0

422.3

    Total liabilities

33,169.8

32,556.5

30,084.2

Stockholders' equity

4,736.0

4,700.5

4,679.2

    Total liabilities and

      stockholders' equity

$ 37,905.8

$ 37,257.0

$ 34,763.4

Net interest income/spread (5)

$245.3

2.85%

$241.1

2.85%

$233.2

2.97%

Net interest margin

2.87%

2.87%

3.00%

(1)

Average yields earned and rates paid are annualized.           

(2)

Includes securities purchased under agreements to resell.           

(3)

Average balances and yields for securities are based on amortized cost.           

(4)

Includes commercial and industrial loans and equipment financing loans.           

(5)

The fully taxable equivalent adjustment was $6.5 million, $6.3 million and $5.1 million for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively. 

 

 

 

People's United Financial, Inc.

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS

December 31, 2015

December 31, 2014

Twelve months ended

Average

Yield/

Average

Yield/

(dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate

Assets:

Short-term investments (1)

$     247.8

$       0.5

0.20%

$     214.9

$       0.4

0.20%

Securities (2)

5,731.5

135.7

2.37

4,746.9

106.3

2.24

Loans:

  Commercial (3)

10,189.5

375.4

3.68

9,266.2

360.7

3.89

  Commercial real estate

9,643.9

343.5

3.56

9,145.0

354.2

3.87

  Residential mortgage

5,222.4

166.7

3.19

4,635.1

154.3

3.33

  Consumer

2,193.1

72.3

3.30

2,172.7

73.9

3.40

    Total loans

27,248.9

957.9

3.52

25,219.0

943.1

3.74

    Total earning assets

33,228.2

$ 1,094.1

3.29%

30,180.8

$ 1,049.8

3.48%

Other assets

3,665.8

3,572.0

    Total assets

$ 36,894.0

$ 33,752.8

Liabilities and stockholders' equity:

Deposits:

  Non-interest-bearing

$   5,801.9

$         -

-   %

$   5,390.1

$         -

-   %

  Savings, interest-bearing checking

    and money market

16,489.3

43.5

0.26

14,238.9

36.7

0.26

  Time

5,241.4

52.0

0.99

4,668.7

44.2

0.95

    Total deposits

27,532.6

95.5

0.35

24,297.7

80.9

0.33

Borrowings:

  Federal Home Loan Bank advances

2,306.6

9.8

0.42

2,593.7

9.2

0.36

  Customer repurchase agreements

463.6

0.9

0.19

482.0

1.0

0.20

  Federal funds purchased

411.0

0.8

0.19

471.8

0.8

0.17

  Repurchase agreements

0.6

-

1.76

53.5

0.1

0.26

  Other borrowings  

-

-

-

3.6

-

0.08

    Total borrowings

3,181.8

11.5

0.36

3,604.6

11.1

0.31

Notes and debentures

1,039.4

29.8

2.87

839.1

26.7

3.19

    Total funding liabilities

31,753.8

$   136.8

0.43%

28,741.4

$   118.7

0.41%

Other liabilities

443.2

386.0

    Total liabilities

32,197.0

29,127.4

Stockholders' equity

4,697.0

4,625.4

    Total liabilities and

      stockholders' equity

$ 36,894.0

$ 33,752.8

Net interest income/spread (4)

$   957.3

2.86%

$   931.1

3.07%

Net interest margin

2.88%

3.09%

(1)

Includes securities purchased under agreements to resell.       

(2)

Average balances and yields for securities are based on amortized cost.       

(3)

Includes commercial and industrial loans and equipment financing loans.       

(4)

The fully taxable equivalent adjustment was $25.2 million and $19.2 million for the twelve months ended December 31, 2015 and 2014, respectively.       

 

 

 

People's United Financial, Inc.

Loans acquired in connection with business combinations are initially recorded at fair value, determined based upon an estimate of expected cash flows, including a reduction for estimated credit losses, and without carryover of the respective portfolio's historical allowance for loan losses.  A decrease in expected cash flows in subsequent periods may indicate that a loan is impaired, which would require the establishment of an allowance for loan losses.  As such, selected asset quality metrics have been highlighted to distinguish between the 'originated' portfolio and the 'acquired' portfolio.

NON-PERFORMING ASSETS

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

(dollars in millions)

2015

2015

2015

2015

2014

Originated non-performing loans:

Commercial:

  Commercial and industrial

$

44.9

$

62.9

$

52.4

$

42.6

$

55.8

  Commercial real estate

30.2

31.8

36.5

43.3

60.2

  Equipment financing

27.5

29.4

38.3

34.9

25.4

    Total

102.6

124.1

127.2

120.8

141.4

Retail:

  Residential mortgage

37.2

38.2

40.9

37.5

37.6

  Home equity

19.5

21.0

21.4

19.4

17.9

  Other consumer

0.1

-

0.1

0.1

0.1

    Total

56.8

59.2

62.4

57.0

55.6

    Total originated non-performing loans (1)

159.4

183.3

189.6

177.8

197.0

REO:

  Residential

7.1

10.8

14.8

16.5

13.6

  Commercial

5.5

8.2

10.6

10.2

11.0

    Total REO

12.6

19.0

25.4

26.7

24.6

Repossessed assets

9.5

7.3

5.5

4.3

2.5

    Total non-performing assets

$

181.5

$

209.6

$

220.5

$

208.8

$

224.1

Acquired non-performing loans (contractual amount) (2)

$

30.0

$

38.4

$

41.5

$

74.8

$

103.6

Originated non-performing loans as a percentage

  of originated loans

0.58

%

0.68

%

0.71

%

0.68

%

0.77

%

Non-performing assets as a percentage of:

  Originated loans, REO and repossessed assets

0.66

0.78

0.83

0.80

0.88

  Tangible stockholders' equity and originated

     allowance for loan losses

6.38

7.37

7.91

7.52

8.24

(1)

Reported net of government guarantees totaling $16.9 million at December 31, 2015, $17.3 million at September 30, 2015, $16.6 million at June 30, 2015, $17.5 million at March 31, 2015 and $17.6 million at December 31, 2014. 

(2)

Represents acquired loans that meet People's United Financial's definition of a non-performing loan but are not, under the accounting model for acquired loans, subject to classification as non-accrual in the same manner as originated loans. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first applied against the non-accretable difference established in purchase accounting and then to any allowance for loan losses recognized subsequent to acquisition.           

 

 

 

People's United Financial, Inc.

PROVISION AND ALLOWANCE FOR LOAN LOSSES

Three Months Ended

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

(dollars in millions)

2015

2015

2015

2015

2014

Allowance for loan losses on originated loans:

  Balance at beginning of period

$

198.1

$

195.1

$

191.1

$

188.1

$

185.0

  Charge-offs

(7.8)

(6.1)

(6.0)

(8.1)

(9.7)

  Recoveries

1.6

2.0

2.8

0.9

1.2

    Net loan charge-offs

(6.2)

(4.1)

(3.2)

(7.2)

(8.5)

  Provision for loan losses

11.0

7.1

7.2

10.2

11.6

    Balance at end of period

202.9

198.1

195.1

191.1

188.1

Allowance for loan losses on acquired loans:

  Balance at beginning of period

9.4

10.3

9.8

10.2

11.9

  Provision for loan losses

(1.3)

(0.9)

0.5

(0.4)

(1.7)

    Balance at end of period

8.1

9.4

10.3

9.8

10.2

    Total allowance for loan losses

$

211.0

$

207.5

$

205.4

$

200.9

$

198.3

Commercial originated allowance for loan loss

  as a percentage of originated commercial loans

0.90

%

0.91

%

0.90

%

0.91

%

0.91

%

Retail originated allowance for loan losses

  as a percentage of originated retail loans

0.28

0.28

0.26

0.26

0.27

Total originated allowance for loan losses

  as a percentage of:

    Originated loans

0.73

0.74

0.73

0.74

0.74

    Originated non-performing loans

127.3

108.1

102.9

107.5

95.5

NET LOAN CHARGE-OFFS (RECOVERIES)

Three Months Ended

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

(dollars in millions)

2015

2015

2015

2015

2014

Commercial:

  Commercial and industrial

$

3.5

$

1.4

$

1.4

$

2.1

$

3.2

  Commercial real estate

(0.1)

0.5

(0.4)

2.8

3.3

  Equipment financing

1.4

1.0

0.5

1.1

-

    Total

4.8

2.9

1.5

6.0

6.5

Retail:

  Residential mortgage

0.1

0.4

0.5

0.4

0.2

  Home equity

1.1

0.6

1.1

0.5

1.3

  Other consumer

0.2

0.2

0.1

0.3

0.5

    Total

1.4

1.2

1.7

1.2

2.0

    Total net loan charge-offs

$

6.2

$

4.1

$

3.2

$

7.2

$

8.5

Net loan charge-offs to

  average total loans (annualized)

0.09

%

0.06

%

0.05

%

0.11

%

0.13

%

 

People's United Financial, Inc. NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP

In addition to evaluating People's United Financial's 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 equity ratios, tangible book value per share and operating earnings metrics. Management believes these non-GAAP financial measures provide information useful to investors in understanding People's United Financial'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 equity ratio and tangible book value per share are used to analyze the relative strength of People's United Financial's capital position.

The efficiency ratio, which represents an approximate measure of the cost required by People's United Financial to generate a dollar of revenue, is the ratio of (i) total non-interest expense (excluding goodwill impairment charges, amortization of other acquisition-related intangible assets, losses on real estate assets and non-recurring expenses, which are also excluded in arriving at operating non-interest expense) (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, and excluding gains and losses on sales of assets other than residential mortgage loans and acquired loans, and non-recurring income) (the denominator). In addition, operating lease expense is excluded from total non-interest expense and netted against operating lease income within non-interest income to conform with the reporting approach applied to fee-based businesses already presented on a net basis.  People's United Financial 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 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 Financial'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) writedowns of banking house assets and related lease termination costs; (iii) severance-related costs; (iv) merger-related expenses, including acquisition integration and other costs; and (v) charges related to executive-level management separation costs, are generally also excluded when calculating the efficiency ratio. Operating earnings per share is derived by determining the per share impact of the respective adjustments to arrive at operating earnings and adding (subtracting) such amounts to (from) GAAP earnings per share. Operating return on average assets is calculated by dividing operating earnings (annualized) by average total assets. Operating return on average tangible stockholders' equity is calculated by dividing operating earnings (annualized) by average tangible stockholders' equity. The operating dividend payout ratio is calculated by dividing dividends paid by operating earnings for the respective period.

The tangible equity ratio is the ratio of (i) tangible stockholders' equity (total stockholders' equity less 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 share is calculated by dividing tangible stockholders' 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 Financial 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

Twelve Months Ended

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

Dec. 31,

Dec. 31,

(dollars in millions)

2015

2015

2015

2015

2014

2015

2014

Total non-interest expense

$  217.0

$  214.2

$  211.8

$  217.6

$  207.7

$   860.6

$   841.5

Adjustments to arrive at operating

  non-interest expense:

  Writedowns of banking house assets

(2.5)

-

(2.7)

(5.3)

-

(10.5)

(6.2)

  Severance-related costs

(1.3)

(0.1)

(0.3)

(0.7)

(0.6)

(2.4)

(3.3)

    Total

(3.8)

(0.1)

(3.0)

(6.0)

(0.6)

(12.9)

(9.5)

    Operating non-interest expense

213.2

214.1

208.8

211.6

207.1

847.7

832.0

Operating lease expense (1)

(9.4)

(9.2)

(9.2)

(9.3)

(8.9)

(37.1)

(37.4)

Amortization of other acquisition-related

    intangible assets

(6.1)

(5.9)

(6.0)

(5.9)

(6.2)

(23.9)

(24.8)

Other (2)

(2.2)

(1.8)

(1.8)

(2.0)

(2.4)

(7.8)

(10.3)

    Total non-interest expense for

      efficiency ratio

$  195.5

$  197.2

$  191.8

$  194.4

$  189.6

$   778.9

$   759.5

Net interest income (FTE basis)

$  245.3

$  241.1

$  237.0

$  233.9

$  233.2

$   957.3

$   931.1

Total non-interest income

93.3

87.1

83.0

89.0

86.8

352.4

350.8

    Total revenues

338.6

328.2

320.0

322.9

320.0

1,309.7

1,281.9

Adjustments:

  Operating lease expense (1)

(9.4)

(9.2)

(9.2)

(9.3)

(8.9)

(37.1)

(37.4)

  BOLI FTE adjustment

0.5

0.6

0.7

0.6

0.9

2.4

2.8

  Net security gains

-

-

-

-

(2.7)

-

(3.0)

  Gain on sale of business, net of expenses

(9.2)

-

-

-

-

(9.2)

(20.6)

  Other (3)

-

(0.1)

-

-

0.1

(0.1)

(0.5)

    Total revenues for efficiency ratio

$  320.5

$  319.5

$  311.5

$  314.2

$  309.4

$ 1,265.7

$ 1,223.2

    Efficiency ratio

61.0%

61.7%

61.6%

61.9%

61.3%

61.5%

62.1%

(1)

Operating lease expense is excluded from total non-interest expense and netted against operating lease income within non-interest income to conform with the reporting approach applied to fee-based businesses already presented on a net basis.                

(2)

Items classified as "other" and deducted from non-interest expense for purposes of calculating the efficiency ratio include, as applicable, certain franchise taxes, real estate owned expenses, contract termination costs and non-recurring expenses.                

(3)

Items classified as "other" and added to (deducted from) total revenues for purposes of calculating the efficiency ratio include, as applicable, asset write-offs and gains associated with the sale of branch locations.              

 

 

 

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued

OPERATING EARNINGS

Three Months Ended

Twelve Months Ended

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

Dec. 31,

Dec. 31,

(dollars in millions, except per share data)

2015

2015

2015

2015

2014

2015

2014

Net income, as reported

$    70.8

$    68.4

$    61.7

$    59.2

$    64.7

$  260.1

$  251.7

Adjustments to arrive at operating earnings:

  Writedowns of banking house assets

2.5

-

2.7

5.3

-

10.5

6.2

  Severance-related costs

1.3

0.1

0.3

0.7

0.6

2.4

3.3

  Gain on sale of business, net of expenses

(9.2)

-

-

-

-

(9.2)

(20.6)

    Total pre-tax adjustments

(5.4)

0.1

3.0

6.0

0.6

3.7

(11.1)

Tax effect

1.8

(0.1)

(1.0)

(2.0)

(0.2)

(1.3)

3.9

    Total adjustments, net of tax

(3.6)

-

2.0

4.0

0.4

2.4

(7.2)

    Operating earnings

$    67.2

$    68.4

$    63.7

$    63.2

$    65.1

$  262.5

$  244.5

Earnings per share, as reported

$    0.23

$    0.23

$    0.20

$    0.20

$    0.22

$    0.86

$    0.84

Adjustments to arrive at operating

  earnings per share:

  Writedowns of banking house assets

0.01

-

0.01

0.01

-

0.03

0.01

  Severance-related costs

-

-

-

-

-

-

0.01

  Gain on sale of business, net of expenses

(0.02)

-

-

-

-

(0.02)

(0.04)

    Total adjustments per share

(0.01)

-

0.01

0.01

-

0.01

(0.02)

    Operating earnings per share

$    0.22

$    0.23

$    0.21

$    0.21

$    0.22

$    0.87

$    0.82

Average total assets

$37,906

$37,257

$36,617

$35,768

$34,763

$36,894

$33,753

Operating return on

  average assets (annualized)

0.71%

0.73%

0.70%

0.71%

0.75%

0.71%

0.72%

OPERATING RETURN ON AVERAGE TANGIBLE STOCKHOLDERS' EQUITY

Three Months Ended

Twelve Months Ended

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

Dec. 31,

Dec. 31,

(dollars in millions)

2015

2015

2015

2015

2014

2015

2014

Operating earnings

$    67.2

$    68.4

$    63.7

$    63.2

$    65.1

$  262.5

$  244.5

Average stockholders' equity

$  4,736

$  4,700

$  4,689

$  4,663

$  4,679

$  4,697

$  4,625

Less: Average goodwill and average other

         acquisition-related intangible assets

2,092

2,088

2,094

2,100

2,106

2,094

2,115

Average tangible stockholders' equity

$  2,644

$  2,612

$  2,595

$  2,563

$  2,573

$  2,603

$  2,510

Operating return on average tangible

  stockholders' equity (annualized)

10.2%

10.5%

9.8%

9.9%

10.1%

10.1%

9.7%

 

 

 

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued

OPERATING DIVIDEND PAYOUT RATIO

Three Months Ended

Twelve Months Ended

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

Dec. 31,

Dec. 31,

(dollars in millions)

2015

2015

2015

2015

2014

2015

2014

Dividends paid

$    50.6

$    50.6

$    50.5

$    49.5

$    49.5

$  201.2

$  196.9

Operating earnings

$    67.2

$    68.4

$    63.7

$    63.2

$    65.1

$  262.5

$  244.5

Operating dividend payout ratio

75.3%

73.9%

79.2%

78.3%

76.0%

76.6%

80.6%

TANGIBLE EQUITY RATIO

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

(dollars in millions)

2015

2015

2015

2015

2014

Total stockholders' equity

$  4,732

$  4,731

$  4,686

$  4,682

$  4,633

Less: Goodwill and other

         acquisition-related intangible assets

2,088

2,085

2,091

2,097

2,103

Tangible stockholders' equity

$  2,644

$  2,646

$  2,595

$  2,585

$  2,530

Total assets

$38,877

$37,478

$37,183

$36,407

$35,997

Less: Goodwill and other

         acquisition-related intangible assets

2,088

2,085

2,091

2,097

2,103

Tangible assets

$36,789

$35,393

$35,092

$34,310

$33,894

Tangible equity ratio

7.2%

7.5%

7.4%

7.5%

7.5%

TANGIBLE BOOK VALUE PER SHARE

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

(in millions, except per share data)

2015

2015

2015

2015

2014

Tangible stockholders' equity

$  2,644

$  2,646

$  2,595

$  2,585

$  2,530

Common shares issued

399.24

398.84

398.66

397.81

396.85

Less: Shares classified as treasury shares

89.06

89.05

89.06

89.05

89.05

         Unallocated ESOP shares

7.32

7.40

7.49

7.58

7.67

Common shares

302.86

302.39

302.11

301.18

300.13

Tangible book value per share

$    8.73

$    8.75

$    8.59

$    8.58

$    8.43

 

 

SOURCE People's United Financial, Inc.



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