People's United Financial Reports Third Quarter Operating Earnings Of $0.20 Per Share And Net Income Of $0.19 Per Share

BRIDGEPORT, Conn., Oct. 17, 2013 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported net income of $58.5 million, or $0.19 per share, for the third quarter of 2013, compared to $62.2 million, or $0.18 per share, for the third quarter of 2012, and $62.1 million, or $0.20 per share, for the second quarter of 2013.  Operating earnings were $60.8 million, or $0.20 per share, for the third quarter of 2013, compared to $64.4 million, or $0.19 per share, for the third quarter of 2012, and $62.4 million, or $0.20 per share, for the second quarter of 2013.

The Company's Board of Directors declared a $0.1625 per share quarterly dividend, payable November 15, 2013 to shareholders of record on November 1, 2013.  Based on the closing stock price on October 16, 2013, the dividend yield on People's United Financial common stock is 4.4 percent.

During the third quarter of 2013 the Company repurchased 2.1 million shares of People's United Financial common stock at a weighted average price of $14.33 per share and, during the first nine months of 2013, the Company repurchased 24.5 million shares of common stock at a weighted average price of $13.39 per share.  Under the existing share repurchase authorization, 8.9 million shares of common stock remain available for repurchase.

"Our performance this quarter 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," stated Jack Barnes, President and Chief Executive Officer.  "Ongoing progress in loan and deposit growth, both this quarter and over the past 12 quarters, is a tribute to both our relationship managers and customers.  We remain focused on delivering shareholder value by leveraging opportunities within existing markets, including strengthening our position in the Boston and New York MSAs."

"On an operating basis, earnings were $61 million, or 20 cents per share, this quarter," stated Kirk W. Walters, Senior Executive Vice President and Chief Financial Officer.  "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.  Cost control remains an important area of focus.  The modest increase in operating expenses this quarter primarily reflects higher payroll-related costs, professional and outside service fees, and real estate owned expenses."

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, acquired non-performing loans have declined $27 million, or 20 percent annualized, and originated non-performing loans have declined $16 million, or 8 percent annualized, from December 31, 2012."

Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.17 percent in the third quarter of 2013 compared to 0.19 percent in the second quarter of 2013 and 0.18 percent in the third quarter of 2012.  For the originated loan portfolio, non-performing loans equaled 1.10 percent of loans at September 30, 2013, compared to 1.18 percent at June 30, 2013 and 1.45 percent at September 30, 2012.  Non-performing assets (excluding acquired non-performing loans) equaled 1.26 percent of originated loans, REO and repossessed assets at September 30, 2013, compared to 1.33 percent at June 30, 2013 and 1.59 percent at September 30, 2012.

Operating return on average assets was 0.78 percent for the third quarter of 2013, compared to 0.81 percent for the second quarter of 2013 and 0.91 percent for the third quarter of 2012.  Operating return on average tangible stockholders' equity was 9.8 percent for the third quarter of 2013, compared to 9.3 percent for the second quarter of 2013 and 8.6 percent for the third quarter of 2012.

At September 30, 2013, People's United Financial's tier 1 common and total risk-based capital ratios were 11.4 percent and 12.6 percent, respectively, and the tangible equity ratio stood at 8.5 percent. People's United Bank's tier 1 and total risk-based capital ratios were 11.8 percent and 13.2 percent, respectively, at September 30, 2013.

People's United Financial, a diversified financial services company with $32 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 $15.5 billion at September 30, 2013.

3Q 2013 Financial Highlights

Summary

  • Net income was $58.5 million, or $0.19 per share.
    • Operating earnings were $60.8 million, or $0.20 per share.
  • Net interest income totaled $223.5 million in 3Q13 compared to $220.9 million in 2Q13.
    • Interest income on acquired loans decreased $4.6 million from 2Q13 to $29.4 million.
  • Net interest margin decreased 3 basis points from 2Q13 to 3.30%.
    • The effect of one more calendar day in 3Q13 benefited the margin by 2 basis points.
    • The effect of new loan volume at lower rates reduced the margin by 6 basis points.
  • Provision for loan losses totaled $12.1 million.
    • Net loan charge-offs totaled $9.6 million, of which $6.4 million related to loans with specific reserves established in prior periods.
    • Reflects a $6.3 million increase in the originated allowance for loan losses due to loan growth.
    • Includes a provision for loan losses on acquired loans of $2.6 million, relating almost entirely to a single credit.
  • Non-interest income was $84.0 million in 3Q13 compared to $86.1 million in 2Q13.
    • Insurance revenue increased $2.0 million from 2Q13, primarily reflecting the seasonal nature of insurance renewals.
    • Bank service charges increased $1.2 million from 2Q13, in part due to the seasonal nature of certain fee categories.
    • Operating lease income increased $0.6 million from 2Q13.
    • Net gains on sales of acquired loans totaled $5.8 million in 2Q13 (none in 3Q13).
    • Assets under administration and those under full discretionary management, neither of which are reported as assets of People's United Financial, totaled $10.5 billion and $5.0 billion, respectively, at September 30, 2013.
  • Non-interest expense totaled $212.5 million in 3Q13 compared to $205.8 million in 2Q13.
    • Operating non-interest expense was $209.2 million in 3Q13 compared to $205.4 million in 2Q13. Excluding operating lease expense and amortization of acquisition-related intangible assets, operating non-interest expense totaled $194.9 million in 3Q13 compared to $191.2 million in 2Q13.
    • Compensation and benefits expense increased $2.5 million from 2Q13, primarily reflecting higher payroll-related costs in 3Q13.
    • Compared to 2Q13, professional and outside service fees increased $1.2 million and real estate owned expenses increased $0.5 million.
    • Efficiency ratio in 3Q13 increased to 63.6% from 62.7% in 2Q13, primarily reflecting the increase in total operating expenses.
  • Effective income tax rate was 29.5% for 3Q13 and 31.5% for the first nine months of 2013, compared to 32.4% for the full-year of 2012.

Commercial Banking

  • Commercial banking loans increased $212 million, or 5% annualized, from June 30, 2013.
  • Average commercial banking loans totaled $16.6 billion in 3Q13, an increase of $436 million, or 11% annualized, from 2Q13.
  • The ratio of originated non-performing commercial banking loans to originated commercial banking loans was 1.01% at September 30, 2013 compared to 1.10% at June 30, 2013.
    • Non-performing commercial banking assets, excluding acquired non-performing loans, totaled $177.1 million at September 30, 2013 compared to $183.8 million at June 30, 2013.
  • Net loan charge-offs totaled $7.2 million, or 0.17% annualized, of average commercial banking loans in 3Q13, compared to $6.9 million, or 0.17% annualized, in 2Q13.
  • For the originated commercial banking portfolio, the allowance for loan losses as a percentage of loans was 1.02% at September 30, 2013 compared to 1.05% at June 30, 2013.
  • The commercial banking originated allowance for loan losses represented 101% of originated non-performing commercial banking loans at September 30, 2013, compared to 96% at June 30, 2013.
  • Commercial deposits totaled $6.3 billion at September 30, 2013 compared to $5.8 billion at June 30, 2013.

Retail Banking

  • Residential mortgage loans increased $152 million, or 15% annualized, from June 30, 2013.
    • Average residential mortgage loans totaled $4.1 billion in 3Q13, an increase of $109 million, or 11% annualized, from 2Q13.
    • The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 1.51% at September 30, 2013 compared to 1.58% at June 30, 2013.
    • Net loan charge-offs totaled $0.4 million, or 0.04% annualized, of average residential mortgage loans in 3Q13, compared to $2.3 million, or 0.23% annualized, in 2Q13.
  • Home equity loans increased $5 million from June 30, 2013.
    • Average home equity loans totaled $2.0 billion in 3Q13, unchanged from 2Q13.
    • The ratio of originated non-performing home equity loans to originated home equity loans was 1.00% at September 30, 2013 compared to 1.06% at June 30, 2013.
    • Net loan charge-offs totaled $1.6 million, or 0.30% annualized, of average home equity loans in 3Q13, compared to $1.4 million, or 0.28% annualized, in 2Q13.
  • Retail deposits totaled $15.9 billion at September 30, 2013 compared to $16.2 billion at June 30, 2013.

Conference Call
On October 17, 2013, 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


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions, except per share data)

2013

2013

2013

2012

2012

Earnings Data:






  Net interest income

$     223.5

$     220.9

$     219.3

$     225.1

$     234.8

  Provision for loan losses

12.1

9.2

12.4

12.0

15.1

  Non-interest income

84.0

86.1

82.9

84.3

81.4

  Non-interest expense

212.5

205.8

212.0

207.4

208.9

  Operating non-interest expense (1)

209.2

205.4

204.0

204.5

205.7

  Income before income tax expense

82.9

92.0

77.8

90.0

92.2

  Net income

58.5

62.1

52.5

61.2

62.2

  Operating earnings (1)

60.8

62.4

57.9

63.2

64.4







Selected Statistical Data:






  Net interest margin (2)

3.30%

3.33%

3.38%

3.63%

3.89%

  Operating net interest margin (1), (2)

3.30

3.33

3.38

3.63

3.82

  Return on average assets (2)

0.75

0.81

0.70

0.85

0.88

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

0.78

0.81

0.77

0.87

0.91

  Return on average tangible assets (2)

0.80

0.87

0.75

0.91

0.95

  Return on average stockholders' equity (2)

5.1

5.2

4.2

4.8

4.8

  Return on average tangible stockholders' equity (2)

9.4

9.3

7.4

8.3

8.3

  Operating return on average tangible






    stockholders' equity (1), (2)

9.8

9.3

8.1

8.6

8.6

  Efficiency ratio (1)

63.6

62.7

64.1

63.0

61.4







Common Share Data:






  Basic and diluted earnings per share

$       0.19

$       0.20

$       0.16

$       0.18

$       0.18

  Operating earnings per share (1)

0.20

0.20

0.18

0.19

0.19

  Dividends paid per share

0.1625

0.1625

0.16

0.16

0.16

  Dividend payout ratio

86.0%

83.6%

100.6%

87.4%

87.3%

  Operating dividend payout ratio (1)

82.7

83.2

91.2

84.8

84.3

  Book value per share (end of period)

$     15.07

$     15.11

$     15.24

$     15.21

$     15.20

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

8.14

8.20

8.54

8.71

8.77

  Stock price:






    High

15.67

15.00

13.61

12.50

12.55

    Low

14.07

12.62

12.22

11.36

11.20

    Close (end of period)

14.38

14.90

13.42

12.09

12.14

  Common shares (end of period) (in millions)

307.72

309.59

320.65

331.27

335.95

  Weighted average diluted common shares (in millions)

307.56

313.52

325.21

331.39

336.48







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




(2) Annualized.












People's United Financial, Inc.



FINANCIAL HIGHLIGHTS - Continued







Nine Months Ended


September 30,

(dollars in millions, except per share data)

2013

2012

Earnings Data:



  Net interest income

$     663.7

$     703.6

  Provision for loan losses

33.7

37.2

  Non-interest income

253.0

229.5

  Non-interest expense

630.3

623.2

  Operating non-interest expense (1)

618.6

613.4

  Income before income tax expense

252.7

272.7

  Net income

173.1

184.1

  Operating earnings (1)

181.1

190.7




Selected Statistical Data:



  Net interest margin (2)

3.33%

3.94%

  Operating net interest margin (1), (2)

3.33

3.89

  Return on average assets (2)

0.75

0.88

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

0.79

0.91

  Return on average tangible assets (2)

0.81

0.96

  Return on average stockholders' equity (2)

4.8

4.7

  Return on average tangible stockholders' equity (2)

8.6

8.1

  Operating return on average tangible



    stockholders' equity (1), (2)

9.0

8.4

  Efficiency ratio (1)

63.5

62.1




Common Share Data:



  Basic and diluted earnings per share

$       0.55

$       0.54

  Operating earnings per share (1)

0.58

0.57

  Dividends paid per share

0.4850

0.4775

  Dividend payout ratio

89.5%

89.3%

  Operating dividend payout ratio (1)

85.6

86.2

  Book value per share (end of period)

$     15.07

$     15.20

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

8.14

8.77

  Stock price:



    High

15.67

13.79

    Low

12.22

11.20

    Close (end of period)

14.38

12.14

  Common shares (end of period) (in millions)

307.72

335.95

  Weighted average diluted common shares (in millions)

315.37

340.69




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

(2) Annualized.















People's United Financial, Inc.






FINANCIAL HIGHLIGHTS - Continued













As of and for the Three Months Ended


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions)

2013

2013

2013

2012

2012

Financial Condition Data:






  General:






    Total assets

$    31,511

$    31,345

$    30,598

$    30,324

$    28,576

    Loans 

23,227

22,866

22,161

21,737

21,040

    Securities

4,379

4,618

4,716

4,669

3,787

    Short-term investments

148

120

127

131

64

    Allowance for loan losses

188

186

187

188

186

    Goodwill and other acquisition-related intangible assets

2,134

2,140

2,147

2,154

2,160

    Deposits

22,190

21,982

21,792

21,751

21,363

    Borrowings

3,621

3,626

2,849

2,386

1,524

    Notes and debentures

639

639

659

659

160

    Stockholders' equity

4,638

4,678

4,886

5,039

5,107

    Total risk-weighted assets (1)

23,731

23,498

22,918

22,764

21,682

    Non-performing assets (2)

271

281

285

290

294

    Net loan charge-offs

9.6

10.8

13.1

10.0

9.4







  Average Balances:






    Loans

$    22,916

$    22,369

$    21,727

$    21,211

$    20,758

    Securities

4,529

4,557

4,548

3,867

3,608

    Short-term investments

179

153

146

128

108

    Total earning assets

27,624

27,079

26,421

25,206

24,474

    Total assets

31,216

30,799

30,178

28,991

28,234

    Deposits

22,066

21,835

21,558

21,557

21,372

    Total funding liabilities

26,168

25,548

24,726

23,487

22,709

    Stockholders' equity

4,622

4,825

5,005

5,107

5,161







  Ratios:






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

0.17%

0.19%

0.24%

0.19%

0.18%

    Non-performing assets to originated loans,






      real estate owned and repossessed assets (2)

1.26

1.33

1.42

1.48

1.59

    Originated allowance for loan losses to:






      Originated loans (2)

0.82

0.85

0.88

0.91

0.95

      Originated non-performing loans (2)

74.8

71.8

70.6

70.3

66.0

    Average stockholders' equity to average total assets

14.8

15.7

16.6

17.6

18.3

    Stockholders' equity to total assets

14.7

14.9

16.0

16.6

17.9

    Tangible stockholders' equity to tangible assets (3)

8.5

8.7

9.6

10.2

11.2

    Total risk-based capital (1)

12.6

12.8

13.7

14.7

15.6







(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











Sept. 30,

June 30,

Dec. 31,

Sept. 30,

(in millions)

2013

2013

2012

2012

Assets





Cash and due from banks

$     447.3

$     379.6

$     470.0

$     358.3

Short-term investments

147.9

119.5

131.4

63.7

    Total cash and cash equivalents

595.2

499.1

601.4

422.0

Securities:





  Trading account securities, at fair value

6.3

6.4

6.5

6.3

  Securities available for sale, at fair value

4,194.8

4,439.9

4,532.3

3,651.0

  Securities held to maturity, at amortized cost

56.1

56.1

56.2

56.2

  Federal Home Loan Bank stock, at cost

121.9

115.4

73.7

73.7

    Total securities

4,379.1

4,617.8

4,668.7

3,787.2

Loans held for sale

28.5

68.3

77.0

60.0

Loans: 





  Commercial

8,457.2

8,560.8

8,400.0

7,951.7

  Commercial real estate

8,393.1

8,077.3

7,294.2

7,032.8

  Residential mortgage

4,235.8

4,084.2

3,886.1

3,891.3

  Consumer

2,141.3

2,143.9

2,156.3

2,164.2

    Total loans

23,227.4

22,866.2

21,736.6

21,040.0

  Less allowance for loan losses

(188.2)

(185.7)

(188.0)

(186.0)

    Total loans, net

23,039.2

22,680.5

21,548.6

20,854.0

Goodwill and other acquisition-related intangible assets

2,133.8

2,140.4

2,153.5

2,160.3

Premises and equipment

314.2

320.1

330.4

334.7

Bank-owned life insurance

338.3

337.2

336.5

335.5

Other assets

682.3

681.5

608.3

622.3

    Total assets

$ 31,510.6

$ 31,344.9

$ 30,324.4

$ 28,576.0






Liabilities





Deposits: 





  Non-interest-bearing

$   5,105.7

$   5,116.0

$   5,084.3

$   4,746.9

  Savings, interest-bearing checking and money market

12,657.5

12,278.6

11,959.8

11,729.0

  Time

4,426.4

4,587.2

4,706.4

4,886.7

    Total deposits

22,189.6

21,981.8

21,750.5

21,362.6

Borrowings:





  Federal Home Loan Bank advances

2,370.6

2,206.4

1,178.3

629.3

  Federal funds purchased

704.0

931.0

619.0

479.0

  Retail repurchase agreements

539.5

487.7

588.2

415.0

  Other borrowings

7.3

1.0

1.0

1.0

    Total borrowings

3,621.4

3,626.1

2,386.5

1,524.3

Notes and debentures

639.0

638.9

659.0

160.4

Other liabilities 

423.0

420.2

489.6

421.3

    Total liabilities

26,873.0

26,667.0

25,285.6

23,468.6






Stockholders' Equity





Common stock

3.9

3.9

3.9

3.9

Additional paid-in capital 

5,272.7

5,268.8

5,261.3

5,263.9

Retained earnings

770.5

763.1

756.2

750.1

Treasury stock, at cost

(1,039.0)

(1,009.3)

(712.2)

(656.2)

Accumulated other comprehensive loss

(202.5)

(178.8)

(96.9)

(79.0)

Unallocated common stock of Employee Stock Ownership Plan, at cost

(168.0)

(169.8)

(173.5)

(175.3)

    Total stockholders' equity

4,637.6

4,677.9

5,038.8

5,107.4

    Total liabilities and stockholders' equity

$ 31,510.6

$ 31,344.9

$ 30,324.4

$ 28,576.0













People's United Financial, Inc.






CONSOLIDATED STATEMENTS OF INCOME













Three Months Ended


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(in millions, except per share data)

2013

2013

2013

2012

2012

Interest and dividend income:






  Commercial

$       86.4

$       87.2

$       86.7

$       90.7

$       91.3

  Commercial real estate

90.0

87.2

85.5

86.0

91.3

  Residential mortgage

34.7

34.3

34.5

34.6

37.1

  Consumer

18.6

18.7

18.8

19.5

19.8

    Total interest on loans

229.7

227.4

225.5

230.8

239.5

  Securities

22.0

22.2

22.7

20.7

20.3

  Loans held for sale

0.5

0.4

0.4

0.4

0.5

  Short-term investments

-

0.1

0.1

0.1

-

    Total interest and dividend income

252.2

250.1

248.7

252.0

260.3

Interest expense:






  Deposits 

20.1

20.5

20.8

21.9

22.1

  Borrowings 

2.7

2.6

2.3

2.0

1.8

  Notes and debentures

5.9

6.1

6.3

3.0

1.6

    Total interest expense

28.7

29.2

29.4

26.9

25.5

    Net interest income

223.5

220.9

219.3

225.1

234.8

Provision for loan losses 

12.1

9.2

12.4

12.0

15.1

    Net interest income after provision for loan losses

211.4

211.7

206.9

213.1

219.7

Non-interest income:






  Bank service charges

33.3

32.1

30.1

31.4

33.0

  Investment management fees

9.2

9.4

9.0

8.9

8.7

  Insurance revenue

9.1

7.1

8.3

6.7

9.5

  Brokerage commissions

3.3

3.4

3.3

2.9

2.8

  Operating lease income

8.7

8.1

8.3

8.5

8.3

  Net gains on sales of residential mortgage loans

3.9

4.2

5.7

6.1

3.6

  Net gains on sales of acquired loans

-

5.8

-

0.3

-

  Merchant services income, net

1.4

1.2

1.2

1.3

1.2

  Bank-owned life insurance

1.2

0.9

0.9

1.1

1.3

  Other non-interest income

13.9

13.9

16.1

17.1

13.0

    Total non-interest income

84.0

86.1

82.9

84.3

81.4

Non-interest expense:






  Compensation and benefits 

106.9

104.4

108.2

97.4

106.7

  Occupancy and equipment 

36.7

36.9

37.9

37.9

36.5

  Professional and outside service fees

16.1

14.9

13.9

16.8

15.8

  Operating lease expense

7.8

7.6

7.5

7.5

6.8

  Amortization of other acquisition-related intangible assets

6.5

6.6

6.5

6.7

6.7

  Other non-interest expense

38.5

35.4

38.0

41.1

36.4

    Total non-interest expense (1)

212.5

205.8

212.0

207.4

208.9

    Income before income tax expense

82.9

92.0

77.8

90.0

92.2

Income tax expense 

24.4

29.9

25.3

28.8

30.0

    Net income

$       58.5

$       62.1

$       52.5

$       61.2

$       62.2







Basic and diluted earnings per common share

$       0.19

$       0.20

$       0.16

$       0.18

$       0.18







(1) Total non-interest expense includes $3.3 million, $0.4 million, $8.0 million, $2.9 million and $3.2 million of

      non-operating expenses for the three months ended Sept. 30, 2013, June 30, 2013, March 31, 2013, Dec. 31, 2012

      and Sept. 30, 2012, respectively. See Non-GAAP financial measures and reconciliation to GAAP.







People's United Financial, Inc.



CONSOLIDATED STATEMENTS OF INCOME







Nine Months Ended


September 30,

(in millions, except per share data)

2013

2012

Interest and dividend income:



  Commercial

$     260.3

$     279.4

  Commercial real estate

262.7

275.2

  Residential mortgage

103.5

109.1

  Consumer

56.1

60.5

    Total interest on loans

682.6

724.2

  Securities

66.9

56.6

  Loans held for sale

1.3

1.4

  Short-term investments

0.2

0.7

    Total interest and dividend income

751.0

782.9

Interest expense:



  Deposits 

61.4

68.8

  Borrowings 

7.6

5.1

  Notes and debentures

18.3

5.4

    Total interest expense

87.3

79.3

    Net interest income

663.7

703.6

Provision for loan losses 

33.7

37.2

    Net interest income after provision for loan losses

630.0

666.4

Non-interest income:



  Bank service charges

95.5

95.8

  Investment management fees

27.6

26.0

  Insurance revenue

24.5

25.1

  Brokerage commissions

10.0

9.3

  Operating lease income

25.1

22.7

  Net gains on sales of residential mortgage loans

13.8

10.0

  Net gains on sales of acquired loans

5.8

0.7

  Merchant services income, net

3.8

3.6

  Bank-owned life insurance

3.0

4.3

  Other non-interest income

43.9

32.0

    Total non-interest income

253.0

229.5

Non-interest expense:



  Compensation and benefits 

319.5

321.5

  Occupancy and equipment 

111.5

104.0

  Professional and outside service fees

44.9

48.6

  Operating lease expense

22.9

18.8

  Amortization of other acquisition-related intangible assets

19.6

20.1

  Other non-interest expense

111.9

110.2

    Total non-interest expense (1)

630.3

623.2

    Income before income tax expense

252.7

272.7

Income tax expense 

79.6

88.6

    Net income

$     173.1

$     184.1




Basic and diluted earnings per common share

$       0.55

$       0.54




(1) Total non-interest expense includes $11.7 million and $9.8 million of non-operating expenses

      for the nine months ended September 30, 2013 and 2012, respectively. See Non-GAAP

      financial measures and reconciliation to GAAP.





















People's United Financial, Inc.









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















September 30, 2013

June 30, 2013


Three months ended

Average


Yield/

Average


Yield/




(dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate




Assets:










Short-term investments

$     179.4

$      -

0.21%

$     152.4

$    0.1

0.18%




Securities (2)

4,528.9

24.0

2.12

4,556.9

24.3

2.13




Loans:










  Commercial (3)

8,470.2

88.7

4.19

8,424.6

89.4

4.25




  Commercial real estate

8,148.3

90.0

4.42

7,757.5

87.2

4.50




  Residential mortgage

4,156.2

35.2

3.38

4,048.5

34.7

3.43




  Consumer

2,140.9

18.6

3.48

2,138.6

18.7

3.49




    Total loans

22,915.6

232.5

4.06

22,369.2

230.0

4.11




    Total earning assets

27,623.9

$256.5

3.71%

27,078.5

$254.4

3.76%




Other assets

3,592.3



3,720.3






    Total assets

$ 31,216.2



$ 30,798.8
















Liabilities and stockholders' equity:










Deposits:










  Non-interest-bearing

$  5,077.0

$      -

-   %

$  4,960.8

$      -

-   %




  Savings, interest-bearing checking










    and money market

12,482.3

8.2

0.26

12,316.4

8.3

0.27




  Time

4,507.1

11.9

1.05

4,558.2

12.2

1.07




    Total deposits

22,066.4

20.1

0.36

21,835.4

20.5

0.38




Borrowings:










  Federal Home Loan Bank advances

2,387.8

2.2

0.37

1,778.3

2.0

0.44




  Federal funds purchased

520.5

0.2

0.17

788.0

0.4

0.19




  Retail repurchase agreements

548.7

0.3

0.20

492.3

0.2

0.19




  Other borrowings  

5.9

-

0.37

1.0

-

1.75




    Total borrowings

3,462.9

2.7

0.31

3,059.6

2.6

0.34




Notes and debentures

639.0

5.9

3.69

653.1

6.1

3.75




    Total funding liabilities

26,168.3

$  28.7

0.44%

25,548.1

$  29.2

0.46%




Other liabilities

425.8



425.8






    Total liabilities

26,594.1



25,973.9






Stockholders' equity

4,622.1



4,824.9






    Total liabilities and










      stockholders' equity

$ 31,216.2



$ 30,798.8
















Net interest income/spread (4)


$227.8

3.27%


$225.2

3.30%














Net interest margin



3.30%



3.33%














Operating net interest margin (5)



3.30%



3.33%














(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 $4.3 million, $4.3 million and $3.0 million for the three months ended


     September 30, 2013, June 30, 2013 and September 30, 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)















September 30, 2012



Three months ended

Average


Yield/







(dollars in millions)

Balance

Interest

Rate







Assets:










Short-term investments

$     107.7

$      -

0.17%







Securities (2)

3,607.7

21.5

2.38







Loans:










  Commercial (3)

7,737.6

93.1

4.81







  Commercial real estate

6,952.2

91.3

5.25







  Residential mortgage

3,906.0

37.6

3.84







  Consumer

2,163.2

19.8

3.67







    Total loans

20,759.0

241.8

4.66







    Total earning assets

24,474.4

$263.3

4.30%







Other assets

3,759.9









    Total assets

$ 28,234.3



















Liabilities and stockholders' equity:










Deposits:










  Non-interest-bearing

$  4,724.6

$      -

-   %







  Savings, interest-bearing checking










    and money market

11,661.7

9.0

0.31







  Time

4,985.9

13.1

1.05







    Total deposits

21,372.2

22.1

0.41







Borrowings:










  Federal Home Loan Bank advances

390.7

1.3

1.31







  Federal funds purchased

295.9

0.2

0.23







  Retail repurchase agreements

478.4

0.2

0.23







  Other borrowings  

11.1

0.1

1.03







    Total borrowings

1,176.1

1.8

0.60







Notes and debentures

160.3

1.6

4.07







    Total funding liabilities

22,708.6

$  25.5

0.45%







Other liabilities

364.9









    Total liabilities

23,073.5









Stockholders' equity

5,160.8









    Total liabilities and










      stockholders' equity

$ 28,234.3



















Net interest income/spread (4)


$237.8

3.85%

















Net interest margin



3.89%

















Operating net interest margin (5)



3.82%

















(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 $4.3 million, $4.3 million and $3.0 million for the three months ended

     September 30, 2013, June 30, 2013 and September 30, 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)











September 30, 2013

September 30, 2012


Nine months ended

Average


Yield/

Average


Yield/


 (dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate


Assets:








Short-term investments

$     159.5

$    0.2

0.20%

$     400.7

$    0.7

0.24%


Securities (2)

4,544.5

72.8

2.13

3,109.4

59.3

2.54


Loans:








  Commercial (3)

8,380.5

267.0

4.25

7,535.6

280.7

4.97


  Commercial real estate

7,771.2

262.7

4.51

7,027.3

279.4

5.30


  Residential mortgage

4,047.2

104.8

3.45

3,830.5

110.5

3.84


  Consumer

2,142.5

56.1

3.49

2,180.2

60.5

3.71


    Total loans

22,341.4

690.6

4.12

20,573.6

731.1

4.74


    Total earning assets

27,045.4

$763.6

3.76%

24,083.7

$791.1

4.38%


Other assets

3,689.4



3,734.5




    Total assets

$ 30,734.8



$ 27,818.2












Liabilities and stockholders' equity:








Deposits:








  Non-interest-bearing

$  4,973.0

$      -

-   %

$  4,576.5

$      -

-   %


  Savings, interest-bearing checking and money market

12,281.9

24.5

0.27

11,454.0

30.1

0.35


  Time

4,567.0

36.9

1.08

5,105.5

38.7

1.01


    Total deposits

21,821.9

61.4

0.37

21,136.0

68.8

0.43


Borrowings:








  Federal Home Loan Bank advances

1,840.5

5.9

0.43

351.3

3.7

1.42


  Federal funds purchased

637.0

0.9

0.19

104.6

0.2

0.23


  Retail repurchase agreements

533.5

0.8

0.20

479.6

1.0

0.27


  Other borrowings  

2.7

-

0.70

21.6

0.2

0.99


    Total borrowings

3,013.7

7.6

0.34

957.1

5.1

0.70


Notes and debentures

650.3

18.3

3.75

160.0

5.4

4.53


    Total funding liabilities

25,485.9

$  87.3

0.46%

22,253.1

$  79.3

0.48%


Other liabilities

433.1



376.6




    Total liabilities

25,919.0



22,629.7




Stockholders' equity

4,815.8



5,188.5




    Total liabilities and stockholders' equity

$ 30,734.8



$ 27,818.2












Net interest income/spread (4)


$676.3

3.30%


$711.8

3.90%










Net interest margin



3.33%



3.94%










Operating net interest margin (5)



3.33%



3.89%










(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 $12.6 million and $8.2 million for the nine months ended

     September 30, 2013 and 2012, respectively.







(5) 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













Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions)

2013

2013

2013

2012

2012

Originated non-performing loans:






Commercial Banking:






  Commercial real estate

$       69.8

$       70.2

$       86.5

$       84.4

$       88.5

  Commercial and industrial

66.7

68.6

50.9

54.8

64.6

  Equipment financing

21.2

27.8

24.8

27.2

37.4

    Total

157.7

166.6

162.2

166.4

190.5

Retail:






  Residential mortgage

59.5

59.6

66.8

65.0

60.6

  Home equity

19.9

21.0

22.2

21.0

14.6

  Other consumer

0.1

0.1

0.2

0.3

0.3

    Total

79.5

80.7

89.2

86.3

75.5

    Total originated non-performing loans (1)

237.2

247.3

251.4

252.7

266.0

REO:






  Residential

14.6

16.0

16.9

17.2

7.2

  Commercial

13.3

10.9

9.6

11.4

12.6

    Total REO

27.9

26.9

26.5

28.6

19.8

Repossessed assets

6.1

6.3

7.2

8.3

8.2

    Total non-performing assets

$     271.2

$     280.5

$     285.1

$     289.6

$     294.0







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

$     154.2

$     159.0

$     180.7

$     181.6

$     202.0







Originated non-performing loans as a percentage






  of originated loans

1.10%

1.18%

1.25%

1.30%

1.45%

Non-performing assets as a percentage of:






  Originated loans, REO and repossessed assets

1.26

1.33

1.42

1.48

1.59

  Tangible stockholders' equity and originated






     allowance for loan losses

10.12

10.33

9.78

9.45

9.41







(1) Reported net of government guarantees totaling $19.8 million at Sept. 30, 2013, $20.4 million at June 30, 2013, 

     $9.9 million at March 31, 2013, $9.7 million at Dec. 31, 2012 and $14.1 million at Sept. 30, 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


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions)

2013

2013

2013

2012

2012

Allowance for loan losses on originated loans:






  Balance at beginning of period

$     177.5

$     177.5

$     177.5

$     175.5

$     175.5

  Charge-offs

(10.7)

(12.0)

(11.3)

(11.6)

(11.1)

  Recoveries

1.2

1.9

1.5

1.6

1.7

    Net loan charge-offs

(9.5)

(10.1)

(9.8)

(10.0)

(9.4)

  Provision for loan losses

9.5

10.1

9.8

12.0

9.4

    Balance at end of period

177.5

177.5

177.5

177.5

175.5







Allowance for loan losses on acquired loans:






  Balance at beginning of period

8.2

9.8

10.5

10.5

4.8

  Charge-offs

(0.1)

(0.7)

(3.3)

-

-

  Provision for loan losses

2.6

(0.9)

2.6

-

5.7

    Balance at end of period

10.7

8.2

9.8

10.5

10.5

    Total allowance for loan losses

$     188.2

$     185.7

$     187.3

$     188.0

$     186.0







Commercial banking originated allowance






  for loan losses as a percentage of






  originated commercial banking loans

1.02%

1.05%

1.11%

1.13%

1.22%

Retail originated allowance for loan losses






  as a percentage of originated retail loans

0.31

0.31

0.32

0.36

0.35

Total originated allowance for loan losses






  as a percentage of:






    Originated loans

0.82

0.85

0.88

0.91

0.95

    Originated non-performing loans

74.8

71.8

70.6

70.3

66.0







NET LOAN CHARGE-OFFS (RECOVERIES)













Three Months Ended


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions)

2013

2013

2013

2012

2012

Commercial Banking:






  Commercial real estate

$       (0.1)

$         4.7

$         6.1

$         2.5

$         3.5

  Commercial and industrial

6.4

1.5

3.7

2.7

2.6

  Equipment financing

0.9

0.7

(0.4)

1.0

1.1

    Total

7.2

6.9

9.4

6.2

7.2

Retail:






  Residential mortgage

0.4

2.3

1.9

1.7

1.3

  Home equity

1.6

1.4

1.5

1.7

0.6

  Other consumer

0.4

0.2

0.3

0.4

0.3

    Total

2.4

3.9

3.7

3.8

2.2

    Total

$         9.6

$       10.8

$       13.1

$       10.0

$         9.4







Net loan charge-offs to






  average total loans (annualized)

0.17%

0.19%

0.24%

0.19%

0.18%

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

Nine Months Ended


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

(dollars in millions)

2013

2013

2013

2012

2012

2013

2012

Total non-interest expense

$      212.5

$      205.8

$      212.0

$      207.4

$      208.9

$      630.3

$      623.2

Adjustments to arrive at operating








  non-interest expense:








  Writedowns of banking house assets

(2.8)

-

(6.2)

-

-

(9.0)

-

  Severance-related costs

(0.5)

(0.4)

(1.5)

(2.9)

(0.9)

(2.4)

(4.4)

  Acquisition integration and other costs

-

-

(0.3)

-

(2.3)

(0.3)

(5.4)

    Total

(3.3)

(0.4)

(8.0)

(2.9)

(3.2)

(11.7)

(9.8)

    Operating non-interest expense

209.2

205.4

204.0

204.5

205.7

618.6

613.4









  Amortization of other acquisition-related








    intangible assets

(6.5)

(6.6)

(6.5)

(6.7)

(6.7)

(19.6)

(20.1)

  Other (1)

(4.0)

(3.4)

(1.5)

(0.6)

(2.7)

(8.9)

(7.2)

    Total

$      198.7

$      195.4

$      196.0

$      197.2

$      196.3

$      590.1

$      586.1









Net interest income (FTE basis)

$      227.8

$      225.2

$      223.3

$      228.6

$      237.8

$      676.3

$      711.8

Total non-interest income

84.0

86.1

82.9

84.3

81.4

253.0

229.5

    Total revenues

311.8

311.3

306.2

312.9

319.2

929.3

941.3

Adjustments:








  BOLI FTE adjustment

0.6

0.4

0.4

0.6

0.7

1.4

2.2

  Other (2)

-

(0.2)

(0.7)

(0.7)

-

(0.9)

-

    Total

$      312.4

$      311.5

$      305.9

$      312.8

$      319.9

$      929.8

$      943.5

    Efficiency ratio

63.6%

62.7%

64.1%

63.0%

61.4%

63.5%

62.1%









(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

Nine Months Ended


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

(dollars in millions, except per share data)

2013

2013

2013

2012

2012

2013

2012

Net income, as reported

$       58.5

$       62.1

$       52.5

$       61.2

$       62.2

$      173.1

$      184.1

Adjustments to arrive at operating earnings:








  Writedowns of banking house assets

2.8

-

6.2

-

-

9.0

-

  Severance-related costs

0.5

0.4

1.5

2.9

0.9

2.4

4.4

  Acquisition integration and other costs

-

-

0.3

-

2.3

0.3

5.4

    Total pre-tax adjustments

3.3

0.4

8.0

2.9

3.2

11.7

9.8

Tax effect

(1.0)

(0.1)

(2.6)

(0.9)

(1.0)

(3.7)

(3.2)

    Total adjustments, net of tax

2.3

0.3

5.4

2.0

2.2

8.0

6.6

    Operating earnings

$       60.8

$       62.4

$       57.9

$       63.2

$       64.4

$      181.1

$      190.7









Earnings per share, as reported

$       0.19

$       0.20

$       0.16

$       0.18

$       0.18

$       0.55

$       0.54

Adjustments to arrive at operating








  earnings per share:








  Writedowns of banking house assets

0.01

-

0.02

-

-

0.03

-

  Severance-related costs

-

-

-

0.01

-

-

0.01

  Acquisition integration and other costs

-

-

-

-

0.01

-

0.02

    Total adjustments per share

0.01

-

0.02

0.01

0.01

0.03

0.03

    Operating earnings per share

$       0.20

$       0.20

$       0.18

$       0.19

$       0.19

$       0.58

$       0.57









Average total assets

$    31,216

$    30,799

$    30,178

$    28,991

$    28,234

$    30,735

$    27,818









Operating return on








  average assets (annualized)

0.78%

0.81%

0.77%

0.87%

0.91%

0.79%

0.91%









OPERATING NET INTEREST MARGIN







Three Months Ended

Nine Months Ended


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

(dollars in millions)

2013

2013

2013

2012

2012

2013

2012

Net interest income (FTE basis)

$      227.8

$      225.2

$      223.3

$      228.6

$      237.8

$      676.3

$      711.8

Adjustments to arrive at operating








  net interest income:








  Cost recovery income

-

-

-

-

(4.1)

-

(8.8)

    Total adjustments

-

-

-

-

(4.1)

-

(8.8)

    Operating net interest income

$      227.8

$      225.2

$      223.3

$      228.6

$      233.7

$      676.3

$      703.0









Net interest margin, as reported (1)

3.30%

3.33%

3.38%

3.63%

3.89%

3.33%

3.94%

Adjustments to arrive at operating








  net interest margin (1):








  Cost recovery income

-

-

-

-

(0.07)

-

(0.05)

    Total adjustments

-

-

-

-

(0.07)

-

(0.05)

    Operating net interest margin (1)

3.30%

3.33%

3.38%

3.63%

3.82%

3.33%

3.89%









Average total earning assets

$    27,624

$    27,079

$    26,421

$    25,206

$    24,474

$    27,045

$    24,084

(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

Nine Months Ended


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

(dollars in millions)

2013

2013

2013

2012

2012

2013

2012

Operating earnings

$      60.8

$      62.4

$      57.9

$      63.2

$      64.4

$    181.1

$    190.7









Average stockholders' equity

$     4,622

$     4,825

$     5,005

$     5,107

$     5,161

$     4,816

$     5,188

Less: Average goodwill and average other








         acquisition-related intangible assets

2,137

2,144

2,151

2,157

2,164

2,144

2,167

Average tangible stockholders' equity

$     2,485

$     2,681

$     2,854

$     2,950

$     2,997

$     2,672

$     3,021









Operating return on average tangible








  stockholders' equity (annualized)

9.8%

9.3%

8.1%

8.6%

8.6%

9.0%

8.4%









OPERATING DIVIDEND PAYOUT RATIO







Three Months Ended

Nine Months Ended


Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

(dollars in millions)

2013

2013

2013

2012

2012

2013

2012

Dividends paid

$      50.3

$      51.9

$      52.8

$      53.6

$      54.3

$    155.0

$    164.3









Operating earnings

$      60.8

$      62.4

$      57.9

$      63.2

$      64.4

$    181.1

$    190.7









Operating dividend payout ratio

82.7%

83.2%

91.2%

84.8%

84.3%

85.6%

86.2%









TANGIBLE EQUITY RATIO









Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,



(dollars in millions)

2013

2013

2013

2012

2012



Total stockholders' equity

$     4,638

$     4,678

$     4,886

$     5,039

$     5,107



Less: Goodwill and other








         acquisition-related intangible assets

2,134

2,140

2,147

2,154

2,160



Tangible stockholders' equity

$     2,504

$     2,538

$     2,739

$     2,885

$     2,947











Total assets

$   31,511

$   31,345

$   30,598

$   30,324

$   28,576



Less: Goodwill and other








         acquisition-related intangible assets

2,134

2,140

2,147

2,154

2,160



Tangible assets

$   29,377

$   29,205

$   28,451

$   28,170

$   26,416











Tangible equity ratio

8.5%

8.7%

9.6%

10.2%

11.2%











TANGIBLE BOOK VALUE PER SHARE







Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,



(in millions, except per share data)

2013

2013

2013

2012

2012



Tangible stockholders' equity

$     2,504

$     2,538

$     2,739

$     2,885

$     2,947











Common shares issued

396.44

396.32

396.24

395.81

395.88



Less: Shares classified as treasury shares

80.62

78.54

67.31

56.18

51.48



         Unallocated ESOP shares

8.10

8.19

8.28

8.36

8.45



Common shares

307.72

309.59

320.65

331.27

335.95











Tangible book value per share

$      8.14

$      8.20

$      8.54

$      8.71

$      8.77



 

SOURCE People's United Financial, Inc.



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