2014

People's United Financial Reports Fourth Quarter Operating Earnings And Net Income Of $0.20 Per Share

BRIDGEPORT, Conn., Jan. 16, 2014 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported net income of $59.3 million, or $0.20 per share, for the fourth quarter of 2013, compared to $61.2 million, or $0.18 per share, for the fourth quarter of 2012, and $58.5 million, or $0.19 per share, for the third quarter of 2013.  Operating earnings were $60.0 million, or $0.20 per share, for the fourth quarter of 2013, compared to $63.2 million, or $0.19 per share, for the fourth quarter of 2012, and $60.8 million, or $0.20 per share, for the third quarter of 2013.

For the year ended December 31, 2013, net income totaled $232.4 million, or $0.74 per share, compared to $245.3 million, or $0.72 per share, for 2012.  Operating earnings were $241.1 million, or $0.77 per share, for 2013, compared to $253.9 million, or $0.75 per share, for 2012.

The Company's Board of Directors declared a $0.1625 per share quarterly dividend, payable February 15, 2014 to shareholders of record on February 1, 2014.  Based on the closing stock price on January 15, 2014, the dividend yield on People's United Financial common stock is 4.2 percent.

During the fourth quarter of 2013 the Company repurchased 8.9 million shares of People's United Financial common stock at a weighted average price of $14.72 per share, completing the repurchase program authorized by the Board of Directors.  In 2013, the Company repurchased 33.4 million shares of common stock at a weighted average price of $13.74 per share.

"Our performance throughout 2013 reflects the continued benefits from strategic investments in people, products and services, as well as an expanded geographic footprint developed over the past three years," said Jack Barnes, President and Chief Executive Officer.  "Our ongoing focus on outstanding customer service has driven healthy loan, deposit and fee income growth over this time period.  We remain committed to delivering shareholder value by leveraging opportunities within existing markets, including continued strengthening of our position in the Boston and New York MSAs."

Barnes continued, "I'm pleased with last year's performance, especially in light of the challenging economic and regulatory environment.  Most notably, we had a large headwind in the form of a declining net interest margin that continued to be impacted by historically low interest rates.  In addition, higher regulatory compliance costs pressured several of our operating metrics."

"Our 2013 financial results reflect another year of meaningful loan and deposit growth," stated Kirk W. Walters, Senior Executive Vice President and Chief Financial Officer.  "Annual loan growth was 12 percent in 2013 after a seven percent increase in 2012, while annual deposit growth was four percent in both years.  The net interest margin reflects the impact of continued strong loan originations, while non-interest income demonstrates the ongoing improvement in most of our fee-based businesses.  I'm particularly pleased that operating expenses were essentially flat as compared to 2012, considering the number of strategic investments we made and the increasing cost of regulatory compliance."

Walters concluded, "We certainly are pleased with the sustained improvement in asset quality.  Our low loan charge-off ratio is a reflection of the Company's historically strong underwriting standards, the economic strength of the geography in which we operate and the resilience of our customers.  Of particular note, since December 31, 2012, acquired non-performing loans declined $39 million, or
22 percent, and originated non-performing loans declined $36 million, or 14 percent."

Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.18 percent in the fourth quarter of 2013, compared to 0.17 percent in the third quarter of 2013 and 0.19 percent in the fourth quarter of 2012.  For the full-year of 2013, net loan charge-offs were 0.19 percent of average total loans compared to 0.21 percent in 2012.  For the originated loan portfolio, non-performing loans equaled 0.95 percent of loans at December 31, 2013, compared to 1.10 percent at September 30, 2013 and 1.30 percent at December 31, 2012.  Non-performing assets (excluding acquired non-performing loans) equaled 1.08 percent of originated loans, REO and repossessed assets at December 31, 2013, compared to 1.26 percent at September 30, 2013 and 1.48 percent at December 31, 2012.

Operating return on average assets was 0.75 percent for the fourth quarter of 2013, compared to 0.78 percent for the third quarter of 2013 and 0.87 percent for the fourth quarter of 2012.  Operating return on average tangible stockholders' equity was 9.8 percent for the fourth quarter of 2013, compared to 9.8 percent for the third quarter of 2013 and 8.6 percent for the fourth quarter of 2012.

At December 31, 2013, People's United Financial's tier 1 common and total risk-based capital ratios were 10.2 percent and 11.3 percent, respectively, and the tangible equity ratio stood at 7.8 percent. People's United Bank's tier 1 and total risk-based capital ratios were 11.1 percent and 12.3 percent, respectively, at December 31, 2013.

People's United Financial, a diversified financial services company with $33 billion in assets, provides commercial and retail banking, as well as wealth management services through a network of 410 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 $16.0 billion at December 31, 2013.

4Q 2013 Financial Highlights

Summary

  • Net income was $59.3 million, or $0.20 per share.
    • Operating earnings were $60.0 million, or $0.20 per share.
  • Net interest income totaled $224.9 million in 4Q13 compared to $223.5 million in 3Q13.
    • Interest income on acquired loans decreased $3.1 million from 3Q13 to $26.3 million.
  • Net interest margin decreased 6 basis points from 3Q13 to 3.24%.
    • The effects of new loan volume at lower rates and reduced interest income on acquired loans both impacted the margin by 4 basis points.
  • Provision for loan losses totaled $10.0 million.
    • Net loan charge-offs totaled $10.4 million, of which $5.4 million related to loans with specific reserves established in prior periods.
    • Reflects a $5.1 million increase in the originated allowance for loan losses due to loan growth and a $0.1 million allowance reversal related to acquired loans.
  • Non-interest income was $80.2 million in 4Q13 compared to $84.0 million in 3Q13.
    • Operating lease income increased $0.7 million from 3Q13.
    • Investment management fees and brokerage commissions both increased $0.4 million from 3Q13.
    • Gains on sales of residential mortgage loans decreased $2.9 million from 3Q13.
    • Insurance revenue decreased $2.4 million from 3Q13, primarily reflecting the seasonal nature of insurance renewals.
    • Bank service charges decreased $1.5 million from 3Q13, in part due to the seasonal nature of certain fee categories.
    • Assets under administration and those under full discretionary management, neither of which are reported as assets of People's United Financial, totaled $10.8 billion and $5.2 billion, respectively, at December 31, 2013.
  • Non-interest expense totaled $208.7 million in 4Q13 compared to $212.5 million in 3Q13.
    • Operating non-interest expense was $207.7 million in 4Q13 compared to $209.2 million in 3Q13. Excluding operating lease expense and amortization of acquisition-related intangible assets, operating non-interest expense totaled $192.7 million in 4Q13 compared to $194.9 million in 3Q13.
    • Compensation and benefits expense increased $0.7 million from 3Q13.
    • Compared to 3Q13, real estate owned expenses decreased $2.4 million, advertising and promotion expense decreased $1.0 million and professional and outside service fees decreased $0.3 million.
    • Efficiency ratio in 4Q13 increased to 64.3% from 63.6% in 3Q13, primarily reflecting the decrease in total revenues.
  • Effective income tax rate was 31.4% for 4Q13 and 31.5% for the full-year of 2013, compared to 32.4% for the full-year of 2012.

Commercial Banking

  • Commercial banking loans increased $967 million, or 23% annualized, from September 30, 2013.
  • Average commercial banking loans totaled $17.1 billion in 4Q13, an increase of $465 million, or 11% annualized, from 3Q13.
  • The ratio of originated non-performing commercial banking loans to originated commercial banking loans was 0.83% at December 31, 2013 compared to 1.01% at September 30, 2013.
    • Non-performing commercial banking assets, excluding acquired non-performing loans, totaled $155.4 million at December 31, 2013 compared to $177.1 million at September 30, 2013.
  • Net loan charge-offs totaled $6.6 million, or 0.15% annualized, of average commercial banking loans in 4Q13, compared to $7.2 million, or 0.17% annualized, in 3Q13.
  • For the originated commercial banking portfolio, the allowance for loan losses as a percentage of loans was 0.95% at December 31, 2013 compared to 1.02% at September 30, 2013.
  • The commercial banking originated allowance for loan losses represented 115% of originated non-performing commercial banking loans at December 31, 2013, compared to 101% at September 30, 2013.
  • Commercial deposits totaled $6.4 billion at December 31, 2013 compared to $6.3 billion at September 30, 2013.

Retail Banking

  • Residential mortgage loans increased $181 million, or 17% annualized, from September 30, 2013.
    • Average residential mortgage loans totaled $4.4 billion in 4Q13, an increase of $215 million, or 21% annualized, from 3Q13.
    • The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 1.42% at December 31, 2013 compared to 1.51% at September 30, 2013.
    • Net loan charge-offs totaled $1.5 million, or 0.14% annualized, of average residential mortgage loans in 4Q13, compared to $0.4 million, or 0.04% annualized, in 3Q13.
  • Home equity loans increased $21 million, or 4% annualized, from September 30, 2013.
    • Average home equity loans totaled $2.1 billion in 4Q13, an increase of $19 million, or 4% annualized, from 3Q13.
    • The ratio of originated non-performing home equity loans to originated home equity loans was 0.98% at December 31, 2013 compared to 1.00% at September 30, 2013.
    • Net loan charge-offs totaled $2.0 million, or 0.38% annualized, of average home equity loans in 4Q13, compared to $1.6 million, or 0.30% annualized, in 3Q13.
  • Retail deposits totaled $16.2 billion at December 31, 2013 compared to $15.9 billion at September 30, 2013.

Conference Call
On January 16, 2014, 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) residential mortgage and secondary market activity; (7) changes in accounting and regulatory guidance applicable to banks; (8) price levels and conditions in the public securities markets generally; (9) competition and its effect on pricing, spending, third-party relationships and revenues; (10) the successful integration of acquisitions; and (11) 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)

2013

2013

2013

2013

2012

Earnings Data:






  Net interest income

$         224.9

$         223.5

$         220.9

$         219.3

$         225.1

  Provision for loan losses

10.0

12.1

9.2

12.4

12.0

  Non-interest income

80.2

84.0

86.1

82.9

84.3

  Non-interest expense

208.7

212.5

205.8

212.0

207.4

  Operating non-interest expense (1)

207.7

209.2

205.4

204.0

204.5

  Income before income tax expense

86.4

82.9

92.0

77.8

90.0

  Net income

59.3

58.5

62.1

52.5

61.2

  Operating earnings (1)

60.0

60.8

62.4

57.9

63.2







Selected Statistical Data:






  Net interest margin (2)

3.24%

3.30%

3.33%

3.38%

3.63%

  Operating net interest margin (1), (2)

3.24

3.30

3.33

3.38

3.63

  Return on average assets (2)

0.75

0.75

0.81

0.70

0.85

  Operating return on average assets (1), (2)

0.75

0.78

0.81

0.77

0.87

  Return on average tangible assets (2)

0.80

0.80

0.87

0.75

0.91

  Return on average stockholders' equity (2)

5.2

5.1

5.2

4.2

4.8

  Return on average tangible stockholders' equity (2)

9.7

9.4

9.3

7.4

8.3

  Operating return on average tangible






    stockholders' equity (1), (2)

9.8

9.8

9.3

8.1

8.6

  Efficiency ratio (1)

64.3

63.6

62.7

64.1

63.0







Common Share Data:






  Basic and diluted earnings per share

$          0.20

$          0.19

$          0.20

$          0.16

$          0.18

  Operating earnings per share (1)

0.20

0.20

0.20

0.18

0.19

  Dividends paid per share

0.1625

0.1625

0.1625

0.16

0.16

  Dividend payout ratio

84.1%

86.0%

83.6%

100.6%

87.4%

  Operating dividend payout ratio (1)

83.0

82.7

83.2

91.2

84.8

  Book value per share (end of period)

$         15.24

$         15.07

$         15.11

$         15.24

$         15.21

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

8.12

8.14

8.20

8.54

8.71

  Stock price:






    High

15.20

15.67

15.00

13.61

12.50

    Low

14.11

14.07

12.62

12.22

11.36

    Close (end of period)

15.12

14.38

14.90

13.42

12.09

  Common shares (end of period) (in millions)

298.90

307.72

309.59

320.65

331.27

  Weighted average diluted common shares (in millions)

302.17

307.56

313.52

325.21

331.39







(1) See Non-GAAP financial measures and reconciliation to GAAP.





(2) Annualized.












People's United Financial, Inc.






FINANCIAL HIGHLIGHTS - Continued













Twelve Months Ended





December 31,




(dollars in millions, except per share data)

2013

2012




Earnings Data:






  Net interest income

$         888.6

$         928.7




  Provision for loan losses

43.7

49.2




  Non-interest income

333.2

313.8




  Non-interest expense

839.0

830.6




  Operating non-interest expense (1)

826.3

817.9




  Income before income tax expense

339.1

362.7




  Net income

232.4

245.3




  Operating earnings (1)

241.1

253.9










Selected Statistical Data:






  Net interest margin

3.31%

3.86%




  Operating net interest margin (1)

3.31

3.82




  Return on average assets

0.75

0.87




  Operating return on average assets (1)

0.78

0.90




  Return on average tangible assets

0.81

0.95




  Return on average stockholders' equity

4.9

4.7




  Return on average tangible stockholders' equity

8.9

8.2




  Operating return on average tangible






    stockholders' equity (1)

9.2

8.5




  Efficiency ratio (1)

63.7

62.3










Common Share Data:






  Basic and diluted earnings per share

$          0.74

$          0.72




  Operating earnings per share (1)

0.77

0.75




  Dividends paid per share

0.6475

0.64




  Dividend payout ratio

88.1%

88.8%




  Operating dividend payout ratio (1)

84.9

85.8




  Book value per share (end of period)

$         15.24

$         15.21




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

8.12

8.71




  Stock price:






    High

15.27

13.79




    Low

11.82

11.20




    Close (end of period)

15.12

12.09




  Common shares (end of period) (in millions)

298.90

331.27




  Weighted average diluted common shares (in millions)

312.04

338.35










(1) 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)

2013

2013

2013

2013

2012

Financial Condition Data:






  General:






    Total assets

$       33,208

$       31,511

$       31,345

$       30,598

$       30,324

    Loans 

24,390

23,227

22,866

22,161

21,737

    Securities

5,033

4,379

4,618

4,716

4,669

    Short-term investments

124

148

120

127

131

    Allowance for loan losses

188

188

186

187

188

    Goodwill and other acquisition-related intangible assets

2,127

2,134

2,140

2,147

2,154

    Deposits

22,557

22,190

21,982

21,792

21,751

    Borrowings

5,057

3,621

3,626

2,849

2,386

    Notes and debentures

639

639

639

659

659

    Stockholders' equity

4,555

4,638

4,678

4,886

5,039

    Total risk-weighted assets (1)

25,399

23,731

23,498

22,918

22,764

    Non-performing assets (2)

248

271

281

285

290

    Net loan charge-offs

10.4

9.6

10.8

13.1

10.0







  Average Balances:






    Loans

$       23,598

$       22,916

$       22,369

$       21,727

$       21,211

    Securities

4,550

4,529

4,557

4,548

3,867

    Short-term investments

146

179

153

146

128

    Total earning assets

28,294

27,624

27,079

26,421

25,206

    Total assets

31,822

31,216

30,799

30,178

28,991

    Deposits

22,379

22,066

21,835

21,558

21,557

    Total funding liabilities

26,817

26,168

25,548

24,726

23,487

    Stockholders' equity

4,574

4,622

4,825

5,005

5,107







  Ratios:






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

0.18%

0.17%

0.19%

0.24%

0.19%

    Non-performing assets to originated loans,






      real estate owned and repossessed assets (2)

1.08

1.26

1.33

1.42

1.48

    Originated allowance for loan losses to:






      Originated loans (2)

0.78

0.82

0.85

0.88

0.91

      Originated non-performing loans (2)

81.9

74.8

71.8

70.6

70.3

    Average stockholders' equity to average total assets

14.4

14.8

15.7

16.6

17.6

    Stockholders' equity to total assets

13.7

14.7

14.9

16.0

16.6

    Tangible stockholders' equity to tangible assets (3)

7.8

8.5

8.7

9.6

10.2

    Total risk-based capital (1)

11.3

12.6

12.8

13.7

14.7







(1) Consolidated.






(2) Excludes acquired loans.






(3) See Non-GAAP financial measures and reconciliation to GAAP.





 

 

People's United Financial, Inc.






CONSOLIDATED STATEMENTS OF CONDITION













Dec. 31,

Sept. 30,

Dec. 31,



(in millions)

2013

2013

2012



Assets






Cash and due from banks

$     350.8

$     447.3

$     470.0



Short-term investments

123.6

147.9

131.4



    Total cash and cash equivalents

474.4

595.2

601.4



Securities:






  Trading account securities, at fair value

8.3

6.3

6.5



  Securities available for sale, at fair value

4,208.2

4,194.8

4,532.3



  Securities held to maturity, at amortized cost

640.5

56.1

56.2



  Federal Home Loan Bank stock, at cost

175.7

121.9

73.7



    Total securities

5,032.7

4,379.1

4,668.7



Loans held for sale

23.3

28.5

77.0



Loans: 






  Commercial real estate

8,921.6

8,393.1

7,294.2



  Commercial

8,895.2

8,457.2

8,400.0



  Residential mortgage

4,416.6

4,235.8

3,886.1



  Consumer

2,156.9

2,141.3

2,156.3



    Total loans

24,390.3

23,227.4

21,736.6



  Less allowance for loan losses

(187.8)

(188.2)

(188.0)



    Total loans, net

24,202.5

23,039.2

21,548.6



Goodwill and other acquisition-related intangible assets

2,127.3

2,133.8

2,153.5



Premises and equipment

304.1

314.2

330.4



Bank-owned life insurance

339.4

338.3

336.5



Other assets

704.5

682.3

608.3



    Total assets

$ 33,208.2

$ 31,510.6

$ 30,324.4









Liabilities






Deposits: 






  Non-interest-bearing

$   5,182.7

$   5,105.7

$   5,084.3



  Savings, interest-bearing checking and money market

12,991.7

12,657.5

11,959.8



  Time

4,382.9

4,426.4

4,706.4



    Total deposits

22,557.3

22,189.6

21,750.5



Borrowings:






  Federal Home Loan Bank advances

3,719.8

2,370.6

1,178.3



  Federal funds purchased

825.0

704.0

619.0



  Retail repurchase agreements

501.2

539.5

588.2



  Other borrowings

11.0

7.3

1.0



    Total borrowings

5,057.0

3,621.4

2,386.5



Notes and debentures

639.1

639.0

659.0



Other liabilities 

400.1

423.0

489.6



    Total liabilities

28,653.5

26,873.0

25,285.6









Stockholders' Equity






Common stock

3.9

3.9

3.9



Additional paid-in capital 

5,277.0

5,272.7

5,261.3



Retained earnings

779.0

770.5

756.2



Treasury stock, at cost

(1,170.2)

(1,039.0)

(712.2)



Accumulated other comprehensive loss

(168.8)

(202.5)

(96.9)



Unallocated common stock of Employee Stock Ownership Plan, at cost

(166.2)

(168.0)

(173.5)



    Total stockholders' equity

4,554.7

4,637.6

5,038.8



    Total liabilities and stockholders' equity

$ 33,208.2

$ 31,510.6

$ 30,324.4









People's United Financial, Inc.






CONSOLIDATED STATEMENTS OF INCOME













Three Months Ended


Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

(in millions, except per share data)

2013

2013

2013

2013

2012

Interest and dividend income:






  Commercial real estate

$       88.5

$       90.0

$       87.2

$       85.5

$       86.0

  Commercial

86.7

86.4

87.2

86.7

90.7

  Residential mortgage

36.4

34.7

34.3

34.5

34.6

  Consumer

18.7

18.6

18.7

18.8

19.5

    Total interest on loans

230.3

229.7

227.4

225.5

230.8

  Securities

22.8

22.0

22.2

22.7

20.7

  Loans held for sale

0.2

0.5

0.4

0.4

0.4

  Short-term investments

0.1

-

0.1

0.1

0.1

    Total interest and dividend income

253.4

252.2

250.1

248.7

252.0

Interest expense:






  Deposits 

19.7

20.1

20.5

20.8

21.9

  Borrowings 

2.9

2.7

2.6

2.3

2.0

  Notes and debentures

5.9

5.9

6.1

6.3

3.0

    Total interest expense

28.5

28.7

29.2

29.4

26.9

    Net interest income

224.9

223.5

220.9

219.3

225.1

Provision for loan losses 

10.0

12.1

9.2

12.4

12.0

    Net interest income after provision for loan losses

214.9

211.4

211.7

206.9

213.1

Non-interest income:






  Bank service charges

31.8

33.3

32.1

30.1

31.4

  Investment management fees

9.6

9.2

9.4

9.0

8.9

  Insurance revenue

6.7

9.1

7.1

8.3

6.7

  Brokerage commissions

3.7

3.3

3.4

3.3

2.9

  Operating lease income

9.4

8.7

8.1

8.3

8.5

  Net gains on sales of residential mortgage loans

1.0

3.9

4.2

5.7

6.1

  Net gains (losses) on sales of acquired loans

(0.1)

-

5.8

-

0.3

  Merchant services income, net

1.2

1.4

1.2

1.2

1.3

  Bank-owned life insurance

1.5

1.2

0.9

0.9

1.1

  Other non-interest income

15.4

13.9

13.9

16.1

17.1

    Total non-interest income

80.2

84.0

86.1

82.9

84.3

Non-interest expense:






  Compensation and benefits 

107.6

106.9

104.4

108.2

97.4

  Occupancy and equipment 

36.5

36.7

36.9

37.9

37.9

  Professional and outside service fees

15.7

16.1

14.9

13.9

16.8

  Operating lease expense

8.4

7.8

7.6

7.5

7.5

  Amortization of other acquisition-related intangible assets

6.6

6.5

6.6

6.5

6.7

  Other non-interest expense

33.9

38.5

35.4

38.0

41.1

    Total non-interest expense (1)

208.7

212.5

205.8

212.0

207.4

    Income before income tax expense

86.4

82.9

92.0

77.8

90.0

Income tax expense 

27.1

24.4

29.9

25.3

28.8

    Net income

$       59.3

$       58.5

$       62.1

$       52.5

$       61.2







Basic and diluted earnings per common share

$       0.20

$       0.19

$       0.20

$       0.16

$       0.18







(1) Total non-interest expense includes $1.0 million, $3.3 million, $0.4 million, $8.0 million and $2.9 million of



      non-operating expenses for the three months ended Dec. 31, 2013, Sept. 30, 2013, June 30, 2013, March 31, 2013


      and Dec. 31, 2012, 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)

2013

2012




Interest and dividend income:






  Commercial real estate

$     351.2

$     365.4




  Commercial

347.0

365.9




  Residential mortgage

139.9

143.7




  Consumer

74.8

80.0




    Total interest on loans

912.9

955.0




  Securities

89.7

77.3




  Loans held for sale

1.5

1.8




  Short-term investments

0.3

0.8




    Total interest and dividend income

1,004.4

1,034.9




Interest expense:






  Deposits 

81.1

90.7




  Borrowings 

10.5

7.1




  Notes and debentures

24.2

8.4




    Total interest expense

115.8

106.2




    Net interest income

888.6

928.7




Provision for loan losses 

43.7

49.2




    Net interest income after provision for loan losses

844.9

879.5




Non-interest income:






  Bank service charges

127.3

127.2




  Investment management fees

37.2

34.9




  Insurance revenue

31.2

31.8




  Brokerage commissions

13.7

12.2




  Operating lease income

34.5

31.2




  Net gains on sales of residential mortgage loans

14.8

16.1




  Net gains on sales of acquired loans

5.7

1.0




  Merchant services income, net

5.0

4.9




  Bank-owned life insurance

4.5

5.4




  Other non-interest income

59.3

49.1




    Total non-interest income

333.2

313.8




Non-interest expense:






  Compensation and benefits 

427.1

418.9




  Occupancy and equipment 

148.0

141.9




  Professional and outside service fees

60.6

65.4




  Operating lease expense

31.3

26.3




  Amortization of other acquisition-related intangible assets

26.2

26.8




  Other non-interest expense

145.8

151.3




    Total non-interest expense (1)

839.0

830.6




    Income before income tax expense

339.1

362.7




Income tax expense 

106.7

117.4




    Net income

$     232.4

$     245.3










Basic and diluted earnings per common share

$       0.74

$       0.72










(1) Total non-interest expense includes $12.7 million of non-operating expenses for both the


      twelve months ended December 31, 2013 and 2012. 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, 2013

September 30, 2013

Three months ended

Average


Yield/

Average


Yield/

(dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate

Assets:







Short-term investments

$       145.9

$           0.1

0.27%

$       179.4

$             -

0.21%

Securities (2)

4,549.9

24.9

2.19

4,528.9

24.0

2.12

Loans:







  Commercial (3)

8,543.3

89.2

4.17

8,470.2

88.7

4.19

  Commercial real estate

8,540.1

88.5

4.15

8,148.3

90.0

4.42

  Residential mortgage

4,360.3

36.6

3.35

4,156.2

35.2

3.38

  Consumer

2,154.0

18.7

3.48

2,140.9

18.6

3.48

    Total loans

23,597.7

233.0

3.95

22,915.6

232.5

4.06

    Total earning assets

28,293.5

$       258.0

3.65%

27,623.9

$       256.5

3.71%

Other assets

3,528.9



3,592.3



    Total assets

$   31,822.4



$   31,216.2










Liabilities and stockholders' equity:







Deposits:







  Non-interest-bearing

$     5,160.7

$             -

-   %

$     5,077.0

$             -

-   %

  Savings, interest-bearing checking







    and money market

12,819.2

8.5

0.27

12,482.3

8.2

0.26

  Time

4,399.1

11.2

1.02

4,507.1

11.9

1.05

    Total deposits

22,379.0

19.7

0.35

22,066.4

20.1

0.36

Borrowings:







  Federal Home Loan Bank advances

2,647.3

2.3

0.34

2,387.8

2.2

0.37

  Federal funds purchased

653.7

0.3

0.18

520.5

0.2

0.17

  Retail repurchase agreements

490.8

0.3

0.21

548.7

0.3

0.20

  Other borrowings  

7.4

-

0.31

5.9

-

0.37

    Total borrowings

3,799.2

2.9

0.30

3,462.9

2.7

0.31

Notes and debentures

639.1

5.9

3.71

639.0

5.9

3.69

    Total funding liabilities

26,817.3

$         28.5

0.43%

26,168.3

$         28.7

0.44%

Other liabilities

431.2



425.8



    Total liabilities

27,248.5



26,594.1



Stockholders' equity

4,573.9



4,622.1



    Total liabilities and







      stockholders' equity

$   31,822.4



$   31,216.2










Net interest income/spread (4)


$       229.5

3.22%


$       227.8

3.27%








Net interest margin



3.24%



3.30%








Operating net interest margin (5)



3.24%



3.30%








(1) Average yields earned and rates paid are annualized.





(2) Average balances and yields for securities available for sale are based on amortized cost.


(3) Includes commercial and industrial loans and equipment financing loans.




(4) The fully taxable equivalent adjustment was $4.6 million, $4.3 million and $3.5 million for the three months ended 

     December 31, 2013, September 30, 2013 and December 31, 2012, respectively.



(5) 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, 2012


Three months ended

Average


Yield/




(dollars in millions)

Balance

Interest

Rate




Assets:







Short-term investments

$       127.5

$           0.1

0.22%




Securities (2)

3,866.8

22.2

2.29




Loans:







  Commercial (3)

8,081.5

92.7

4.59




  Commercial real estate

7,043.8

86.0

4.89




  Residential mortgage

3,926.7

35.0

3.57




  Consumer

2,159.3

19.5

3.61




    Total loans

21,211.3

233.2

4.40




    Total earning assets

25,205.6

$       255.5

4.05%




Other assets

3,785.2






    Total assets

$   28,990.8













Liabilities and stockholders' equity:







Deposits:







  Non-interest-bearing

$     4,895.7

$             -

-   %




  Savings, interest-bearing checking







    and money market

11,863.1

8.6

0.29




  Time

4,798.2

13.3

1.11




    Total deposits

21,557.0

21.9

0.41




Borrowings:







  Federal Home Loan Bank advances

622.8

1.4

0.91




  Federal funds purchased

465.2

0.3

0.24




  Retail repurchase agreements

539.3

0.3

0.23




  Other borrowings  

1.1

-

1.53




    Total borrowings

1,628.4

2.0

0.50




Notes and debentures

301.4

3.0

3.89




    Total funding liabilities

23,486.8

$         26.9

0.45%




Other liabilities

397.3






    Total liabilities

23,884.1






Stockholders' equity

5,106.7






    Total liabilities and







      stockholders' equity

$   28,990.8













Net interest income/spread (4)


$       228.6

3.60%











Net interest margin



3.63%











Operating net interest margin (5)



3.63%











(1) Average yields earned and rates paid are annualized.



(2) Average balances and yields for securities available for sale are based on amortized cost.


(3) Includes commercial and industrial loans and equipment financing loans.


(4) The fully taxable equivalent adjustment was $4.6 million, $4.3 million and $3.5 million for the three months ended 

     December 31, 2013, September 30, 2013 and December 31, 2012, respectively.

(5) See Non-GAAP financial measures and reconciliation to GAAP.









People's United Financial, Inc.







AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS











December 31, 2013

December 31, 2012

Twelve months ended

Average


Yield/

Average


Yield/

(dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate

Assets:







Short-term investments

$       156.1

$           0.3

0.22%

$       332.0

$           0.8

0.24%

Securities (1)

4,545.9

97.7

2.15

3,299.8

81.5

2.47

Loans:







  Commercial (2)

8,421.5

356.2

4.23

7,672.8

373.4

4.87

  Commercial real estate

7,965.0

351.2

4.41

7,031.5

365.4

5.20

  Residential mortgage

4,126.1

141.4

3.42

3,854.7

145.5

3.77

  Consumer

2,145.4

74.8

3.49

2,174.9

80.0

3.68

    Total loans

22,658.0

923.6

4.08

20,733.9

964.3

4.65

    Total earning assets

27,360.0

$     1,021.6

3.73%

24,365.7

$     1,046.6

4.30%

Other assets

3,648.9



3,747.2



    Total assets

$   31,008.9



$   28,112.9










Liabilities and stockholders' equity:







Deposits:







  Non-interest-bearing

$     5,020.3

$             -

-   %

$     4,656.8

$             -

-   %

  Savings, interest-bearing checking and money market

12,417.3

33.0

0.27

11,556.8

38.7

0.33

  Time

4,524.7

48.1

1.06

5,028.2

52.0

1.04

    Total deposits

21,962.3

81.1

0.37

21,241.8

90.7

0.43

Borrowings:







  Federal Home Loan Bank advances

2,043.9

8.2

0.40

419.5

5.1

1.23

  Federal funds purchased

641.2

1.2

0.19

195.3

0.5

0.24

  Retail repurchase agreements

522.7

1.1

0.20

494.7

1.3

0.26

  Other borrowings  

3.9

-

0.51

16.4

0.2

1.00

    Total borrowings

3,211.7

10.5

0.33

1,125.9

7.1

0.63

Notes and debentures

647.5

24.2

3.74

195.5

8.4

4.28

    Total funding liabilities

25,821.5

$       115.8

0.45%

22,563.2

$       106.2

0.47%

Other liabilities

432.6



381.8



    Total liabilities

26,254.1



22,945.0



Stockholders' equity

4,754.8



5,167.9



    Total liabilities and stockholders' equity

$   31,008.9



$   28,112.9










Net interest income/spread (3)


$       905.8

3.28%


$       940.4

3.83%








Net interest margin



3.31%



3.86%








Operating net interest margin (4)



3.31%



3.82%








(1) Average balances and yields for securities available for sale are based on amortized cost.


(2) Includes commercial and industrial loans and equipment financing loans.



(3) The fully taxable equivalent adjustment was $17.2 million and $11.7 million for the twelve months ended

     December 31, 2013 and 2012, respectively.




(4) See Non-GAAP financial measures and reconciliation to GAAP.




 

 

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)

2013

2013

2013

2013

2012

Originated non-performing loans:






Commercial Banking:






  Commercial real estate

$            70.8

$            69.8

$            70.2

$            86.5

$            84.4

  Commercial and industrial

43.8

66.7

68.6

50.9

54.8

  Equipment financing

23.2

21.2

27.8

24.8

27.2

    Total

137.8

157.7

166.6

162.2

166.4

Retail:






  Residential mortgage

58.9

59.5

59.6

66.8

65.0

  Home equity

19.8

19.9

21.0

22.2

21.0

  Other consumer

0.1

0.1

0.1

0.2

0.3

    Total

78.8

79.5

80.7

89.2

86.3

    Total originated non-performing loans (1)

216.6

237.2

247.3

251.4

252.7

REO:






  Residential

13.6

14.6

16.0

16.9

17.2

  Commercial

13.1

13.3

10.9

9.6

11.4

    Total REO

26.7

27.9

26.9

26.5

28.6

Repossessed assets

4.5

6.1

6.3

7.2

8.3

    Total non-performing assets

$          247.8

$          271.2

$          280.5

$          285.1

$          289.6







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

$          142.5

$          154.2

$          159.0

$          180.7

$          181.6







Originated non-performing loans as a percentage






  of originated loans

0.95%

1.10%

1.18%

1.25%

1.30%

Non-performing assets as a percentage of:






  Originated loans, REO and repossessed assets

1.08

1.26

1.33

1.42

1.48

  Tangible stockholders' equity and originated






     allowance for loan losses

9.52

10.12

10.33

9.78

9.45







(1) Reported net of government guarantees totaling $19.4 million at Dec. 31, 2013, $19.8 million at Sept. 30, 2013,


     $20.4 million at June 30, 2013, $9.9 million at March 31, 2013 and $9.7 million at Dec. 31, 2012.


(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)

2013

2013

2013

2013

2012

Allowance for loan losses on originated loans:






  Balance at beginning of period

$          177.5

$          177.5

$          177.5

$          177.5

$          175.5

  Charge-offs

(11.4)

(10.7)

(12.0)

(11.3)

(11.6)

  Recoveries

1.3

1.2

1.9

1.5

1.6

    Net loan charge-offs

(10.1)

(9.5)

(10.1)

(9.8)

(10.0)

  Provision for loan losses

10.1

9.5

10.1

9.8

12.0

    Balance at end of period

177.5

177.5

177.5

177.5

177.5







Allowance for loan losses on acquired loans:






  Balance at beginning of period

10.7

8.2

9.8

10.5

10.5

  Charge-offs

(0.3)

(0.1)

(0.7)

(3.3)

-

  Provision for loan losses

(0.1)

2.6

(0.9)

2.6

-

    Balance at end of period

10.3

10.7

8.2

9.8

10.5

    Total allowance for loan losses

$          187.8

$          188.2

$          185.7

$          187.3

$          188.0







Commercial banking originated allowance






  for loan losses as a percentage of






  originated commercial banking loans

0.95%

1.02%

1.05%

1.11%

1.13%

Retail originated allowance for loan losses






  as a percentage of originated retail loans

0.30

0.31

0.31

0.32

0.36

Total originated allowance for loan losses






  as a percentage of:






    Originated loans

0.78

0.82

0.85

0.88

0.91

    Originated non-performing loans

81.9

74.8

71.8

70.6

70.3







NET LOAN CHARGE-OFFS (RECOVERIES)













Three Months Ended


Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

(dollars in millions)

2013

2013

2013

2013

2012

Commercial Banking:






  Commercial real estate

$              2.1

$            (0.1)

$              4.7

$              6.1

$              2.5

  Commercial and industrial

3.7

6.4

1.5

3.7

2.7

  Equipment financing

0.8

0.9

0.7

(0.4)

1.0

    Total

6.6

7.2

6.9

9.4

6.2

Retail:






  Residential mortgage

1.5

0.4

2.3

1.9

1.7

  Home equity

2.0

1.6

1.4

1.5

1.7

  Other consumer

0.3

0.4

0.2

0.3

0.4

    Total

3.8

2.4

3.9

3.7

3.8

    Total

$            10.4

$              9.6

$            10.8

$            13.1

$            10.0







Net loan charge-offs to






  average total loans (annualized)

0.18%

0.17%

0.19%

0.24%

0.19%

 

 

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 their 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 banks and thrifts. 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) (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). 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) merger-related expenses, including acquisition integration and other costs;

(ii) charges related to executive-level management separation costs; (iii) severance-related costs; and 

(iv) writedowns of banking house assets, 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.


    Operating net interest margin excludes from the net interest margin those items that management considers to

be of such a discrete nature that, by excluding such items, People's United Financial's net interest margin can be

measured and assessed on a more consistent basis from period to period. Excluded from operating net interest

margin is cost recovery income on acquired loans.  Operating net interest margin is calculated by dividing

operating net interest income (annualized) by average total earning assets.


    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)

2013

2013

2013

2013

2012

2013

2012

Total non-interest expense

$      208.7

$      212.5

$      205.8

$      212.0

$      207.4

$      839.0

$      830.6

Adjustments to arrive at operating








  non-interest expense:








  Writedowns of banking house assets

-

(2.8)

-

(6.2)

-

(9.0)

-

  Severance-related costs

(0.4)

(0.5)

(0.4)

(1.5)

(2.9)

(2.8)

(7.3)

  Acquisition integration and other costs

(0.6)

-

-

(0.3)

-

(0.9)

(5.4)

    Total

(1.0)

(3.3)

(0.4)

(8.0)

(2.9)

(12.7)

(12.7)

    Operating non-interest expense

207.7

209.2

205.4

204.0

204.5

826.3

817.9









  Amortization of other acquisition-related








    intangible assets

(6.6)

(6.5)

(6.6)

(6.5)

(6.7)

(26.2)

(26.8)

  Other (1)

(1.4)

(4.0)

(3.4)

(1.5)

(0.6)

(10.3)

(7.8)

    Total

$      199.7

$      198.7

$      195.4

$      196.0

$      197.2

$      789.8

$      783.3









Net interest income (FTE basis)

$      229.5

$      227.8

$      225.2

$      223.3

$      228.6

$      905.8

$      940.4

Total non-interest income

80.2

84.0

86.1

82.9

84.3

333.2

313.8

    Total revenues

309.7

311.8

311.3

306.2

312.9

1,239.0

1,254.2

Adjustments:








  BOLI FTE adjustment

0.7

0.6

0.4

0.4

0.6

2.1

2.8

  Other (2)

0.1

-

(0.2)

(0.7)

(0.7)

(0.8)

(0.7)

    Total

$      310.5

$      312.4

$      311.5

$      305.9

$      312.8

$   1,240.3

$   1,256.3

    Efficiency ratio

64.3%

63.6%

62.7%

64.1%

63.0%

63.7%

62.3%









(1)  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.

(2)  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)

2013

2013

2013

2013

2012

2013

2012

Net income, as reported

$        59.3

$        58.5

$        62.1

$        52.5

$        61.2

$      232.4

$      245.3

Adjustments to arrive at operating earnings:







  Writedowns of banking house assets

-

2.8

-

6.2

-

9.0

-

  Severance-related costs

0.4

0.5

0.4

1.5

2.9

2.8

7.3

  Acquisition integration and other costs

0.6

-

-

0.3

-

0.9

5.4

    Total pre-tax adjustments

1.0

3.3

0.4

8.0

2.9

12.7

12.7

Tax effect

(0.3)

(1.0)

(0.1)

(2.6)

(0.9)

(4.0)

(4.1)

    Total adjustments, net of tax

0.7

2.3

0.3

5.4

2.0

8.7

8.6

    Operating earnings

$        60.0

$        60.8

$        62.4

$        57.9

$        63.2

$      241.1

$      253.9









Earnings per share, as reported (1)

$        0.20

$        0.19

$        0.20

$        0.16

$        0.18

$        0.74

$        0.72

Adjustments to arrive at operating








  earnings per share:








  Writedowns of banking house assets

-

0.01

-

0.02

-

0.03

-

  Severance-related costs

-

-

-

-

0.01

-

0.02

  Acquisition integration and other costs

-

-

-

-

-

-

0.01

    Total adjustments per share

-

0.01

-

0.02

0.01

0.03

0.03

    Operating earnings per share (1)

$        0.20

$        0.20

$        0.20

$        0.18

$        0.19

$        0.77

$        0.75









(1) The sum of quarterly earnings per share amounts for 2013 do not equal the full-year amount due to rounding and/or changes in

      average share count. 
















Average total assets

$    31,822

$    31,216

$    30,799

$    30,178

$    28,991

$    31,009

$    28,113









Operating return on








  average assets (annualized)

0.75%

0.78%

0.81%

0.77%

0.87%

0.78%

0.90%









OPERATING NET INTEREST MARGIN








Three Months Ended

Twelve Months Ended


Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

Dec. 31,

Dec. 31,

(dollars in millions)

2013

2013

2013

2013

2012

2013

2012

Net interest income (FTE basis)

$      229.5

$      227.8

$      225.2

$      223.3

$      228.6

$      905.8

$      940.4

Adjustments to arrive at operating








  net interest income:








  Cost recovery income

-

-

-

-

-

-

(8.8)

    Total adjustments

-

-

-

-

-

-

(8.8)

    Operating net interest income

$      229.5

$      227.8

$      225.2

$      223.3

$      228.6

$      905.8

$      931.6









Net interest margin, as reported (1)

3.24%

3.30%

3.33%

3.38%

3.63%

3.31%

3.86%

Adjustments to arrive at operating








  net interest margin (1):








  Cost recovery income

-

-

-

-

-

-

(0.04)

    Total adjustments

-

-

-

-

-

-

(0.04)

    Operating net interest margin (1)

3.24%

3.30%

3.33%

3.38%

3.63%

3.31%

3.82%









Average total earning assets

$    28,294

$    27,624

$    27,079

$    26,421

$    25,206

$    27,360

$    24,366

(1)  Annualized.








 

 

People's United Financial, Inc.








NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued











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)

2013

2013

2013

2013

2012

2013

2012

Operating earnings

$       60.0

$       60.8

$       62.4

$       57.9

$       63.2

$     241.1

$     253.9









Average stockholders' equity

$     4,574

$     4,622

$     4,825

$     5,005

$     5,107

$     4,755

$     5,168

Less: Average goodwill and average other







         acquisition-related intangible assets

2,131

2,137

2,144

2,151

2,157

2,141

2,165

Average tangible stockholders' equity

$     2,443

$     2,485

$     2,681

$     2,854

$     2,950

$     2,614

$     3,003









Operating return on average tangible








  stockholders' equity (annualized)

9.8%

9.8%

9.3%

8.1%

8.6%

9.2%

8.5%









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)

2013

2013

2013

2013

2012

2013

2012

Dividends paid

$       49.8

$       50.3

$       51.9

$       52.8

$       53.6

$     204.8

$     217.9









Operating earnings

$       60.0

$       60.8

$       62.4

$       57.9

$       63.2

$     241.1

$     253.9









Operating dividend payout ratio

83.0%

82.7%

83.2%

91.2%

84.8%

84.9%

85.8%









TANGIBLE EQUITY RATIO









Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,



(dollars in millions)

2013

2013

2013

2013

2012



Total stockholders' equity

$     4,555

$     4,638

$     4,678

$     4,886

$     5,039



Less: Goodwill and other








         acquisition-related intangible assets

2,127

2,134

2,140

2,147

2,154



Tangible stockholders' equity

$     2,428

$     2,504

$     2,538

$     2,739

$     2,885











Total assets

$    33,208

$    31,511

$    31,345

$    30,598

$    30,324



Less: Goodwill and other








         acquisition-related intangible assets

2,127

2,134

2,140

2,147

2,154



Tangible assets

$    31,081

$    29,377

$    29,205

$    28,451

$    28,170











Tangible equity ratio

7.8%

8.5%

8.7%

9.6%

10.2%











TANGIBLE BOOK VALUE PER SHARE








Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,



(in millions, except per share data)

2013

2013

2013

2013

2012



Tangible stockholders' equity

$     2,428

$     2,504

$     2,538

$     2,739

$     2,885











Common shares issued

396.45

396.44

396.32

396.24

395.81



Less: Shares classified as treasury shares

89.54

80.62

78.54

67.31

56.18



         Unallocated ESOP shares

8.01

8.10

8.19

8.28

8.36



Common shares

298.90

307.72

309.59

320.65

331.27











Tangible book value per share

$       8.12

$       8.14

$       8.20

$       8.54

$       8.71



 

SOURCE People's United Financial, Inc.



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