People's United Financial Reports Second Quarter Net Income of $68.5 Million, or $0.23 Per Share

People's United Financial Reports Second Quarter Net Income of $68.5 Million, or $0.23 Per Share

PR Newswire

BRIDGEPORT, Conn., July 21, 2016

BRIDGEPORT, Conn., July 21, 2016 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported net income of $68.5 million, or $0.23 per share, for the second quarter of 2016, compared to $61.7 million, or $0.20 per share, for the second quarter of 2015, and $62.9 million, or $0.21 per share, for the first quarter of 2016.

The Company's Board of Directors declared a $0.17 per share quarterly dividend, payable August 15, 2016 to shareholders of record on August 1, 2016.  Based on the closing stock price on July 20, 2016, the dividend yield on People's United Financial common stock is 4.4 percent.

"We are pleased with the Company's performance this quarter," commented Jack Barnes, President and Chief Executive Officer. "Net income of $68.5 million increased 11 percent from the prior year quarter and generated a return on average tangible equity of 10.1 percent. As expected, loan production rebounded in the second quarter as the portfolio grew more than seven percent on an annualized basis, with particularly strong results in commercial and industrial lending as well as residential mortgage. While deposit balances were modestly lower due to seasonal declines in our retail and municipal businesses, franchise-wide cross-sell and commercial deposit gathering efforts continue to be successful."

Barnes continued, "Our announced acquisitions of Suffolk Bancorp and Gerstein Fisher are two more successful steps in executing our strategy of growing and strengthening People's United in the New York metro area. Suffolk, with its impressive Long Island footprint, outstanding deposit base and commitment to relationship banking, further bolsters our presence in this attractive banking market. Gerstein Fisher, a New York City-based investment management firm, with its well-known quantitative investment approach and scalable technology platform, will complement our excellent range of wealth management client solutions as well as further diversify revenues through additional non-interest income. We are excited to welcome each of these respected companies to People's United and look forward to building upon their successes."

"Second quarter results reflect our continued focus on improving operating leverage," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "Ongoing revenue growth and proactive expense management drove an efficiency ratio of 60.4 percent, a decrease of 120 basis points from the prior year quarter. Revenues grew four percent from the prior year quarter as a result of improvements in both net interest income and non-interest income. Total expenses increased modestly from a year ago, but declined on a linked quarter basis as expected."

Rosato concluded, "Capital ratios continue to be strong, especially given the Company's diversified business mix and history of exceptional credit risk management. Our conservative and well-defined underwriting philosophy remains a hallmark of the franchise, as evidenced by net charge-offs as a percentage of average loans of only seven basis points for the quarter. We continue to build the business for the long-term and will not sacrifice asset quality to achieve growth."

At June 30, 2016, People's United Financial's common equity tier 1 capital and total risk-based capital ratios were 9.6 percent and 11.4 percent, respectively, and the tangible equity ratio stood at 7.2 percent.  For People's United Bank N.A., common equity tier 1 capital and total risk-based capital ratios were 10.8 percent and 12.8 percent, respectively, at June 30, 2016.

Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.07 percent in the second quarter of 2016, a decrease from 0.09 percent in the first quarter of 2016, but a slight increase from 0.05 percent in the second quarter of 2015.  For the originated loan portfolio, non-performing loans equaled 0.56 percent of loans at June 30, 2016, compared to 0.61 percent at March 31, 2016 and 0.71 percent at June 30, 2015.

Return on average assets of 0.70 percent for the second quarter of 2016 increased from 0.65 percent in the first quarter of 2016 and 0.67 percent in the second quarter of 2015.  Return on average tangible stockholders' equity of 10.1 percent in the second quarter of 2016 increased from 9.4 percent in the first quarter of 2016 and 9.5 percent in the second quarter of 2015.

People's United Financial, Inc., a diversified financial services company with $40 billion in total assets, provides commercial and retail banking, as well as wealth management services through a network of approximately 400 branches in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine.  Through its subsidiaries, People's United Financial provides equipment financing, brokerage and insurance services.

2Q 2016 Financial Highlights

Summary

  • Net income totaled $68.5 million, or $0.23 per share.
  • Net interest income totaled $240.0 million in 2Q16 compared to $240.1 million in 1Q16.
  • Net interest margin decreased four basis points from 1Q16 to 2.79% reflecting:
    • New loan volume at rates lower than the existing portfolio (decrease of three basis points).
    • Increase in average investment balances (decrease of one basis point).
  • Provision for loan losses totaled $10.0 million.
    • Net loan charge-offs totaled $5.1 million, of which $1.2 million related to loans with previously-established specific reserves.
    • Net loan charge-off ratio of 0.07% in 2Q16.
    • Reflects a $6.6 million increase in the originated allowance for loan losses.
  • Non-interest income was $85.4 million in 2Q16 compared to $82.3 million in 1Q16.
    • Commercial banking lending fees increased $1.1 million.
    • Bank-owned life insurance increased $1.0 million.
    • Bank service charges increased $0.9 million.
    • Insurance revenue decreased $2.3 million.
    • Other non-interest income in 2Q16 includes a $1.2 million gain on the sale of an interest in a real estate investment.
    • At June 30, 2016, assets under administration, which are not reported as assets of People's United Financial, totaled $16.5 billion, of which $5.6 billion are under discretionary management, compared to $16.4 billion and $5.6 billion, respectively, at March 31, 2016.
  • Non-interest expense totaled $212.9 million in 2Q16 compared to $217.3 million in 1Q16.
    • Compensation and benefits decreased $2.7 million, primarily reflecting lower payroll and benefit-related costs in 2Q16.
    • Professional and outside services expense decreased $1.0 million.
    • Regulatory assessments expense increased $1.2 million.
    • The efficiency ratio was 60.4% in 2Q16 compared to 62.7% in 1Q16 (see Non-GAAP Financial Measures and Reconciliation to GAAP).
  • The effective income tax rate was 33.2% for 2Q16 and 33.3% for the first six months of 2016, compared to 33.4% for the full-year of 2015.

Commercial Banking

  • Commercial loans totaled $21.1 billion at June 30, 2016, an increase of $352 million, or 7% annualized, from March 31, 2016.
    • The mortgage warehouse portfolio increased $217 million from March 31, 2016.
  • Average commercial loans totaled $20.7 billion in 2Q16, an increase of $279 million, or 5% annualized, from 1Q16.
    • The average mortgage warehouse portfolio increased $203 million in 2Q16.
  • Commercial deposits totaled $9.5 billion at June 30, 2016 compared to $9.4 billion at March 31, 2016.
  • The ratio of originated non-performing commercial loans to originated commercial loans was 0.53% at June 30, 2016 compared to 0.59% at March 31, 2016.
  • Non-performing commercial assets, excluding acquired non-performing loans, totaled $125.0 million at June 30, 2016 compared to $131.2 million at March 31, 2016.
  • For the originated commercial portfolio, the allowance for loan losses as a percentage of loans was 0.92% at both June 30, 2016 and March 31, 2016.
  • The commercial originated allowance for loan losses represented 172% of originated non-performing commercial loans at June 30, 2016 compared to 156% at March 31, 2016.

Retail Banking

  • Residential mortgage loans increased $188 million, or 13% annualized, from March 31, 2016.
    • Average residential mortgage loans totaled $5.7 billion in 2Q16, an increase of $140 million, or 10% annualized, from 1Q16.
  • Home equity loans decreased $14 million from March 31, 2016.
    • Average home equity loans totaled $2.1 billion in 2Q16, unchanged from 1Q16.
  • Retail deposits (excluding brokered deposits) totaled $16.9 billion at June 30, 2016 compared to $17.1 billion at March 31, 2016.
  • The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 0.53% at June 30, 2016 compared to 0.57% at March 31, 2016.
  • The ratio of originated non-performing home equity loans to originated home equity loans was 0.83% at June 30, 2016 compared to 0.90% at March 31, 2016.

Conference Call

On July 21, 2016, at 5 p.m., Eastern Time, People's United Financial will host a conference call to discuss this earnings announcement.  The call may be heard through www.peoples.com by selecting "Investor Relations" in the "About Us" section on the home page, and then selecting "Conference Calls" in the "News and Events" section.  Additional materials relating to the call may also be accessed at People's United Bank's web site.  The call will be archived on the web site and available for approximately 90 days.

Certain statements contained in this release are forward-looking in nature. These include all statements about People's United Financial's plans, objectives, expectations and other statements that are not historical facts, and usually use words such as "expect," "anticipate," "believe," "should" and similar expressions. Such statements represent management's current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause People's United Financial's actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors of particular importance to People's United Financial include, but are not limited to: (1) changes in general, national or regional economic conditions; (2) changes in interest rates; (3) changes in loan default and charge-off rates; (4) changes in deposit levels; (5) changes in levels of income and expense in non-interest income and expense related activities; (6) changes in accounting and regulatory guidance applicable to banks; (7) price levels and conditions in the public securities markets generally; (8) competition and its effect on pricing, spending, third-party relationships and revenues; and (9) changes in regulation resulting from or relating to financial reform legislation. People's United Financial does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Access Information About People's United Financial at www.peoples.com.

 

People's United Financial, Inc.











FINANCIAL HIGHLIGHTS





























Three Months Ended






June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

(dollars in millions, except per share data)

2016

2016

2015

2015

2015

Earnings Data:











  Net interest income (fully taxable equivalent)

$

247.7

$

247.4

$

245.3

$

241.1

$

237.0

  Net interest income 

240.0

240.1

238.8

234.8

230.4

  Provision for loan losses

10.0

10.5

9.7

6.2

7.7

  Non-interest income (1)

85.4

82.3

93.3

87.1

83.0

  Non-interest expense

212.9

217.3

217.0

214.2

211.8

  Operating non-interest expense (2)

 n/a 

 n/a 

213.2

214.1

208.8

  Income before income tax expense

102.5

94.6

105.4

101.5

93.9

  Net income

68.5

62.9

70.8

68.4

61.7

  Operating earnings (2)

 n/a 

 n/a 

67.2

68.4

63.7














Selected Statistical Data:











  Net interest margin (3)

2.79

%

2.83

%

2.87

%

2.87

%

2.88

%

  Return on average assets (3)

0.70

0.65

0.75

0.73

0.67

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

 n/a 

 n/a 

0.71

0.73

0.70

  Return on average tangible assets (3)

0.73

0.69

0.79

0.78

0.71

  Return on average stockholders' equity (3)

5.7

5.3

6.0

5.8

5.3

  Return on average tangible stockholders' equity (3)

10.1

9.4

10.7

10.5

9.5

  Operating return on average tangible











    stockholders' equity (2), (3)

 n/a 

 n/a 

10.2

10.5

9.8

  Efficiency ratio (2)

60.4

62.7

61.0

61.7

61.6














Common Share Data:











  Basic and diluted earnings per share

$

0.23

$

0.21

$

0.23

$

0.23

$

0.20

  Operating earnings per share (2)

 n/a 

 n/a 

0.22

0.23

0.21

  Dividends paid per share

0.17

0.1675

0.1675

0.1675

0.1675

  Dividend payout ratio

75.4

%

80.6

%

71.5

%

73.9

%

81.8

%

  Operating dividend payout ratio (2)

 n/a 

 n/a 

75.3

73.9

79.2

  Book value per share (end of period)

$

15.91

$

15.80

$

15.62

$

15.64

$

15.51

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

9.07

8.94

8.73

8.75

8.59

  Stock price:











    High

16.68

16.27

16.93

16.95

16.64

    Low

13.80

13.62

15.00

14.69

14.92

    Close (end of period)

14.66

15.93

16.15

15.73

16.21

  Common shares (end of period) (in millions)

303.55

303.27

302.86

302.39

302.11

  Weighted average diluted common shares (in millions)

302.48

301.86

301.38

301.00

300.09














(1) Three months ended December 31, 2015 includes a $9.2 million net gain resulting from the sale of People's United

      Bank's payroll services business.











(2) Effective with the quarter ended March 31, 2016, certain expenses are no longer considered to be non-operating

      expenses. Accordingly, operating metrics are not applicable. See Non-GAAP Financial Measures and Reconciliation

      to GAAP.











(3) Annualized.











 

 

People's United Financial, Inc.





FINANCIAL HIGHLIGHTS













Six Months Ended

June 30,

(dollars in millions, except per share data)

2016

2015

Earnings Data:





  Net interest income (fully taxable equivalent)

$

495.1

$

470.9

  Net interest income 

480.1

458.5

  Provision for loan losses

20.5

17.5

  Non-interest income

167.7

172.0

  Non-interest expense

430.2

429.4

  Operating non-interest expense (1)

 n/a 

420.4

  Income before income tax expense

197.1

183.6

  Net income

131.4

120.9

  Operating earnings (1)

 n/a 

126.9








Selected Statistical Data:





  Net interest margin (2)

2.81

%

2.90

%

  Return on average assets (2)

0.67

0.67

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

 n/a 

0.70

  Return on average tangible assets (2)

0.71

0.71

  Return on average stockholders' equity (2)

5.5

5.2

  Return on average tangible stockholders' equity (2)

9.8

9.4

  Operating return on average tangible





    stockholders' equity (1), (2)

 n/a 

9.8

  Efficiency ratio (1)

61.5

61.7








Common Share Data:





  Basic and diluted earnings per share

$

0.43

$

0.40

  Operating earnings per share (1)

 n/a 

0.42

  Dividends paid per share

0.3375

0.3325

  Dividend payout ratio

77.9

%

82.7

%

  Operating dividend payout ratio (1)

 n/a 

78.8

  Book value per share (end of period)

$

15.91

$

15.51

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

9.07

8.59

  Stock price:





    High

16.68

16.64

    Low

13.62

13.97

    Close (end of period)

14.66

16.21

  Common shares (end of period) (in millions)

303.55

302.11

  Weighted average diluted common shares (in millions)

302.17

299.62








(1) Effective with the quarter ended March 31, 2016, certain expenses are no longer 

      considered to be non-operating expenses. Accordingly, operating metrics are not 

      applicable. 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




June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

(dollars in millions)

2016

2016

2015

2015

2015

Financial Condition Data:










    Total assets

$

40,150

$

39,264

$

38,947

$

37,507

$

37,208

    Loans 

29,038

28,511

28,411

27,672

27,562

    Securities

6,785

6,732

6,449

5,921

5,756

    Short-term investments (1)

364

251

380

245

196

    Allowance for loan losses

220

216

211

208

205

    Goodwill and other acquisition-related intangible assets

2,076

2,079

2,088

2,085

2,091

    Deposits

28,999

29,105

28,417

28,280

27,435

    Borrowings

4,563

3,717

4,307

2,997

3,563

    Notes and debentures

1,058

1,050

1,033

1,039

1,024

    Stockholders' equity

4,830

4,791

4,732

4,731

4,686

    Total risk-weighted assets (2):










       People's United Financial, Inc.

30,279

29,832

29,646

28,990

28,688

       People's United Bank, N.A.

30,245

29,826

29,621

28,953

28,648

    Non-performing assets (3)

182

189

182

210

221

    Net loan charge-offs

5.1

6.0

6.2

4.1

3.2












Average Balances:










    Loans

$

28,558

$

28,159

$

27,853

$

27,496

$

27,125

    Securities (4)

6,699

6,498

6,133

5,880

5,577

    Short-term investments (1)

298

348

247

245

223

    Total earning assets

35,555

35,005

34,233

33,621

32,925

    Total assets

39,422

38,773

37,955

37,284

36,645

    Deposits

29,079

28,721

28,481

27,810

27,236

    Borrowings

3,895

3,664

3,187

3,304

3,215

    Notes and debentures

1,049

1,044

1,037

1,028

1,034

    Total funding liabilities

34,023

33,429

32,705

32,142

31,485

    Stockholders' equity

4,795

4,761

4,736

4,700

4,689












Ratios:










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

0.07

%

0.09

%

0.09

%

0.06

%

0.05

%

    Non-performing assets to originated loans,










      real estate owned and repossessed assets (3)

0.64

0.68

0.66

0.78

0.83

    Originated allowance for loan losses to:










      Originated loans (3)

0.75

0.75

0.73

0.74

0.73

      Originated non-performing loans (3)

135.3

123.3

127.3

108.1

102.9

    Average stockholders' equity to average total assets

12.2

12.3

12.5

12.6

12.8

    Stockholders' equity to total assets

12.0

12.2

12.2

12.6

12.6

    Tangible stockholders' equity to tangible assets (5)

7.2

7.3

7.2

7.5

7.4

    Total risk-based capital (2):










       People's United Financial, Inc.

11.4

11.5

11.7

11.8

11.8

       People's United Bank, N.A.

12.8

12.9

12.6

12.8

12.9












(1) Includes securities purchased under agreements to resell.









(2) June 30, 2016 amounts and ratios are preliminary.










(3) Excludes acquired loans.










(4) Average balances for securities are based on amortized cost.








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




 

 

People's United Financial, Inc.



CONSOLIDATED STATEMENTS OF CONDITION









June 30,

March 31,

Dec. 31,

June 30,

(in millions)

2016

2016

2015

2015

Assets



Cash and due from banks

$     343.9

$     302.7

$     334.8

$     362.8

Short-term investments

363.9

251.0

380.5

195.5

    Total cash and cash equivalents

707.8

553.7

715.3

558.3

Securities:



  Trading account securities, at fair value

6.8

6.8

6.7

8.3

  Securities available for sale, at fair value 

4,711.8

4,746.1

4,527.7

4,518.7

  Securities held to maturity, at amortized cost

1,749.4

1,678.8

1,609.6

913.6

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

317.4

299.9

305.4

315.1

    Total securities

6,785.4

6,731.6

6,449.4

5,755.7

Loans held for sale

61.4

31.5

34.5

56.8

Loans: 



  Commercial real estate

10,011.3

10,046.4

10,028.8

9,600.4

  Commercial and industrial

8,066.1

7,707.1

7,748.7

7,761.0

  Equipment financing (1)

3,005.9

2,977.8

2,973.3

2,819.9

  Residential mortgage

5,789.0

5,600.8

5,457.0

5,191.6

  Consumer

2,166.0

2,178.6

2,203.1

2,189.4

    Total loans

29,038.3

28,510.7

28,410.9

27,562.3

  Less allowance for loan losses

(220.4)

(215.5)

(211.0)

(205.4)

    Total loans, net

28,817.9

28,295.2

28,199.9

27,356.9

Goodwill and other acquisition-related intangible assets

2,076.1

2,078.9

2,087.8

2,090.6

Bank-owned life insurance

346.8

346.7

346.5

345.9

Premises and equipment

249.5

252.1

257.8

262.9

Other assets

1,105.1

974.1

855.5

781.2

    Total assets

$ 40,150.0

$ 39,263.8

$ 38,946.7

$ 37,208.3



Liabilities



Deposits: 



  Non-interest-bearing

$   6,226.8

$   6,091.4

$   6,178.6

$   5,893.1

  Savings, interest-bearing checking and money market

18,040.2

18,134.9

17,420.7

16,084.2

  Time

4,732.1

4,879.2

4,818.1

5,457.5

    Total deposits

28,999.1

29,105.5

28,417.4

27,434.8

Borrowings:



  Federal Home Loan Bank advances

3,562.4

3,063.1

3,463.8

2,615.2

  Federal funds purchased

680.0

303.0

374.0

474.0

  Customer repurchase agreements

320.8

351.2

469.5

472.6

  Other borrowings

-

-

-

1.0

    Total borrowings

4,563.2

3,717.3

4,307.3

3,562.8

Notes and debentures

1,058.2

1,050.4

1,033.1

1,023.9

Other liabilities

699.8

599.4

457.3

501.1

    Total liabilities

35,320.3

34,472.6

34,215.1

32,522.6



Stockholders' Equity



Common stock

3.9

3.9

3.9

3.9

Additional paid-in capital 

5,350.4

5,344.3

5,337.7

5,319.6

Retained earnings

905.8

889.6

880.8

843.8

Accumulated other comprehensive loss

(120.3)

(134.7)

(177.2)

(164.5)

Unallocated common stock of Employee Stock Ownership Plan, at cost

(148.1)

(150.0)

(151.8)

(155.4)

Treasury stock, at cost

(1,162.0)

(1,161.9)

(1,161.8)

(1,161.7)

    Total stockholders' equity

4,829.7

4,791.2

4,731.6

4,685.7

    Total liabilities and stockholders' equity

$ 40,150.0

$ 39,263.8

$ 38,946.7

$ 37,208.3



(1) Represents loans and leases held by People's Capital and Leasing Corp. and People's United Equipment Finance Corp.

 

 

People's United Financial, Inc.









CONSOLIDATED STATEMENTS OF INCOME























Three Months Ended



June 30,

March 31,

Dec. 31,

Sept. 30,

June 30, 

(in millions, except per share data)

2016

2016

2015

2015

2015

Interest and dividend income:









  Commercial real estate

$  85.3

$  86.8

$  86.1

$  85.7

$   86.4

  Commercial and industrial

62.8

60.3

59.6

59.3

58.7

  Equipment financing (1)

33.0

33.3

33.1

33.2

31.6

  Residential mortgage

43.8

43.9

43.0

41.9

40.3

  Consumer

18.4

18.6

18.1

18.1

18.0

    Total interest on loans

243.3

242.9

239.9

238.2

235.0

  Securities

34.7

34.5

33.8

31.2

29.0

  Loans held for sale

0.2

0.2

0.3

0.4

0.4

  Short-term investments

0.3

0.4

0.2

0.1

0.1

    Total interest and dividend income

278.5

278.0

274.2

269.9

264.5

Interest expense:









  Deposits 

25.4

25.2

24.6

24.8

23.9

  Borrowings 

5.3

5.0

3.3

2.9

2.7

  Notes and debentures

7.8

7.7

7.5

7.4

7.5

    Total interest expense

38.5

37.9

35.4

35.1

34.1

    Net interest income

240.0

240.1

238.8

234.8

230.4

Provision for loan losses 

10.0

10.5

9.7

6.2

7.7

    Net interest income after provision for loan losses

230.0

229.6

229.1

228.6

222.7

Non-interest income:









  Bank service charges

24.7

23.8

25.0

26.1

25.4

  Investment management fees

11.4

11.1

10.8

10.8

11.3

  Operating lease income

10.1

10.4

10.5

10.5

10.5

  Commercial banking lending fees

9.2

8.1

9.2

10.3

9.8

  Insurance revenue

7.0

9.3

7.5

9.1

6.5

  Cash management fees

6.3

6.0

6.1

6.4

6.1

  Customer interest rate swap income, net

3.6

3.3

3.6

3.4

2.2

  Brokerage commissions

3.2

3.0

3.1

3.1

3.2

  Bank-owned life insurance

2.0

1.0

1.0

1.1

1.4

  Net gains on sales of residential mortgage loans

0.9

0.9

1.3

1.5

2.0

  Gain on sale of business, net of expenses

-

-

9.2

-

-

  Other non-interest income

7.0

5.4

6.0

4.8

4.6

    Total non-interest income (2)

85.4

82.3

93.3

87.1

83.0

Non-interest expense:









  Compensation and benefits 

111.4

114.1

112.0

113.4

109.3

  Occupancy and equipment 

37.4

37.5

37.0

37.0

36.8

  Professional and outside services

16.4

17.4

17.9

17.0

17.3

  Operating lease expense

9.1

9.2

9.4

9.2

9.2

  Regulatory assessments

9.2

8.0

7.1

9.5

9.2

  Amortization of other acquisition-related intangible assets

5.8

5.8

6.1

5.9

6.0

  Other non-interest expense

23.6

25.3

27.5

22.2

24.0

    Total non-interest expense (2)

212.9

217.3

217.0

214.2

211.8

    Income before income tax expense

102.5

94.6

105.4

101.5

93.9

Income tax expense

34.0

31.7

34.6

33.1

32.2

    Net income

$  68.5

$  62.9

$  70.8

$  68.4

$   61.7

Basic and diluted earnings per common share

$  0.23

$  0.21

$  0.23

$  0.23

$   0.20











(1) Represents loans and leases held by People's Capital and Leasing Corp. and People's United Equipment Finance Corp.

(2) Total non-interest income includes $9.2 million of non-operating income for the three months ended December 31, 2015.

      Total non-interest expense includes $3.8 million, $0.1 million and $3.0 million of non-operating expenses for the three

      months ended December 31, 2015, September 30, 2015 and June 30, 2015, respectively. See Non-GAAP Financial 

      Measures and Reconciliation to GAAP.








 

 

People's United Financial, Inc.


CONSOLIDATED STATEMENTS OF INCOME







Six Months Ended

June 30, 

(in millions, except per share data)

2016

2015

Interest and dividend income:


  Commercial real estate

$  172.1

$  171.7

  Commercial and industrial

123.1

115.9

  Equipment financing (1)

66.3

63.3

  Residential mortgage

87.7

80.5

  Consumer

37.0

36.1

    Total interest on loans

486.2

467.5

  Securities

69.2

56.5

  Loans held for sale

0.4

0.6

  Short-term investments

0.7

0.2

    Total interest and dividend income

556.5

524.8

Interest expense:


  Deposits 

50.6

46.1

  Borrowings 

10.3

5.3

  Notes and debentures

15.5

14.9

    Total interest expense

76.4

66.3

    Net interest income

480.1

458.5

Provision for loan losses 

20.5

17.5

    Net interest income after provision for loan losses

459.6

441.0

Non-interest income:


  Bank service charges

48.5

49.6

  Investment management fees

22.5

22.1

  Operating lease income

20.5

21.3

  Commercial banking lending fees

17.3

23.1

  Insurance revenue

16.3

14.1

  Cash management fees

12.3

12.0

  Customer interest rate swap income, net

6.9

7.5

  Brokerage commissions

6.2

6.4

  Bank-owned life insurance

3.0

2.5

  Net gains on sales of residential mortgage loans

1.8

2.7

  Net gains on sales of acquired loans

-

1.7

  Other non-interest income

12.4

9.0

    Total non-interest income

167.7

172.0

Non-interest expense:


  Compensation and benefits 

225.5

224.1

  Occupancy and equipment 

74.9

75.5

  Professional and outside services

33.8

33.1

  Operating lease expense

18.3

18.5

  Regulatory assessments

17.2

18.5

  Amortization of other acquisition-related intangible assets

11.6

11.9

  Other non-interest expense

48.9

47.8

    Total non-interest expense (2)

430.2

429.4

    Income before income tax expense

197.1

183.6

Income tax expense

65.7

62.7

    Net income

$  131.4

$  120.9


Basic and diluted earnings per common share

$    0.43

$    0.40


(1) Represents loans and leases held by People's Capital and Leasing Corp. and People's United 

      Equipment Finance Corp.


(2) Total non-interest expense includes $9.0 million of non-operating expenses for the six months

      ended June 30, 2015. See Non-GAAP Financial Measures and Reconciliation to GAAP.


 

 

People's United Financial, Inc.










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

















June 30, 2016

March 31, 2016

June 30, 2015

Three months ended

Average

Yield/

Average

Yield/

Average

Yield/

(dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

Assets:










Short-term investments (2)

$     297.8

$    0.3

0.42%

$     347.8

$    0.4

0.47%

$     223.3

$    0.1

0.21%

Securities (3)

6,698.7

39.2

2.34

6,498.0

38.7

2.38

5,577.3

32.5

2.33

Loans:










  Commercial real estate

9,997.0

85.3

3.41

9,997.6

86.8

3.47

9,568.4

86.4

3.61

  Commercial and industrial

7,727.8

66.0

3.42

7,478.1

63.4

3.39

7,418.0

61.8

3.33

  Equipment financing

2,981.4

33.0

4.43

2,951.9

33.3

4.52

2,809.6

31.6

4.50

  Residential mortgage

5,679.9

44.0

3.10

5,540.3

44.1

3.18

5,140.3

40.7

3.17

  Consumer

2,172.5

18.4

3.38

2,191.7

18.6

3.40

2,188.4

18.0

3.28

    Total loans

28,558.6

246.7

3.46

28,159.6

246.2

3.50

27,124.7

238.5

3.52

    Total earning assets

35,555.1

$286.2

3.22%

35,005.4

$285.3

3.26%

32,925.3

$271.1

3.29%

Other assets

3,866.9


3,767.7


3,719.5

    Total assets

$ 39,422.0


$ 38,773.1


$ 36,644.8













Liabilities and stockholders' equity:










Deposits:










  Non-interest-bearing

$   6,098.3

$      -

-   %

$   5,992.3

$      -

-   %

$   5,695.9

$      -

-   %

  Savings, interest-bearing checking










    and money market

18,151.0

12.9

0.28

17,905.6

12.7

0.29

16,155.6

10.9

0.27

  Time

4,830.1

12.5

1.04

4,823.6

12.5

1.03

5,384.9

13.0

0.97

    Total deposits

29,079.4

25.4

0.35

28,721.5

25.2

0.35

27,236.4

23.9

0.35

Borrowings:










  Federal Home Loan Bank advances

3,157.8

4.7

0.59

2,880.0

4.4

0.61

2,365.6

2.3

0.40

  Federal funds purchased

421.5

0.5

0.48

394.0

0.4

0.44

395.7

0.2

0.19

  Customer repurchase agreements

315.9

0.1

0.19

389.6

0.2

0.19

452.3

0.2

0.19

  Other borrowings  

-

-

-

-

-

-

1.0

-

1.75

    Total borrowings

3,895.2

5.3

0.55

3,663.6

5.0

0.54

3,214.6

2.7

0.34

Notes and debentures

1,048.8

7.8

2.98

1,043.8

7.7

2.96

1,033.5

7.5

2.89

    Total funding liabilities

34,023.4

$  38.5

0.45%

33,428.9

$  37.9

0.45%

31,484.5

$  34.1

0.43%

Other liabilities

603.3


583.4


471.7

    Total liabilities

34,626.7


34,012.3


31,956.2

Stockholders' equity

4,795.3


4,760.8


4,688.6

    Total liabilities and










      stockholders' equity

$ 39,422.0


$ 38,773.1


$ 36,644.8













Net interest income/spread (4)

$247.7

2.77%

$247.4

2.81%

$237.0

2.86%










Net interest margin

2.79%


2.83%


2.88%










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








(2) Includes securities purchased under agreements to resell.







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





(4) The fully taxable equivalent adjustment was $7.7 million, $7.3 million and $6.6 million for the three months ended June 30, 2016, 

      March 31, 2016 and June 30, 2015, respectively.








 

 

People's United Financial, Inc.






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









June 30, 2016

June 30, 2015

Six months ended

Average

Yield/

Average

Yield/

(dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate

Assets:






Short-term investments (2)

$     322.8

$    0.7

0.45%

$     249.4

$    0.2

0.20%

Securities (3)

6,598.3

77.9

2.36

5,451.8

63.2

2.32

Loans:






  Commercial real estate

9,997.3

172.1

3.44

9,485.5

171.7

3.62

  Commercial and industrial

7,603.0

129.4

3.41

7,241.5

121.6

3.36

  Equipment financing

2,966.6

66.3

4.47

2,821.2

63.3

4.49

  Residential mortgage

5,610.1

88.1

3.14

5,075.5

81.1

3.20

  Consumer

2,182.1

37.0

3.39

2,192.4

36.1

3.29

    Total loans

28,359.1

492.9

3.48

26,816.1

473.8

3.53

    Total earning assets

35,280.2

$571.5

3.24%

32,517.3

$537.2

3.30%

Other assets

3,817.3


3,705.3

    Total assets

$ 39,097.5


$ 36,222.6









Liabilities and stockholders' equity:






Deposits:






  Non-interest-bearing

$   6,045.3

$      -

-   %

$   5,649.8

$      -

-   %

  Savings, interest-bearing checking






    and money market

18,028.3

25.6

0.28

15,925.1

20.9

0.26

  Time

4,826.8

25.0

1.04

5,334.7

25.2

0.95

    Total deposits

28,900.4

50.6

0.35

26,909.6

46.1

0.34

Borrowings:






  Federal Home Loan Bank advances

3,018.9

9.1

0.60

2,212.6

4.5

0.41

  Federal funds purchased

407.7

0.9

0.46

433.9

0.4

0.18

  Customer repurchase agreements

352.8

0.3

0.19

469.4

0.4

0.18

  Other borrowings  

-

-

-

1.0

-

1.75

    Total borrowings

3,779.4

10.3

0.55

3,116.9

5.3

0.34

Notes and debentures

1,046.3

15.5

2.97

1,034.0

14.9

2.87

    Total funding liabilities

33,726.1

$  76.4

0.45%

31,060.5

$  66.3

0.43%

Other liabilities

583.3


486.1

    Total liabilities

34,309.4


31,546.6

Stockholders' equity

4,788.1


4,676.0

    Total liabilities and






      stockholders' equity

$ 39,097.5


$ 36,222.6









Net interest income/spread (4)

$495.1

2.79%

$470.9

2.87%






Net interest margin

2.81%


2.90%






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




(2) Includes securities purchased under agreements to resell.



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

(4) The fully taxable equivalent adjustment was $15.0 million and $12.4 million for the six months ended 

      June 30, 2016 and 2015, respectively.





 

 

People's United Financial, Inc.
























Loans acquired in connection with business combinations are initially recorded at fair value, determined based

upon an estimate of expected cash flows, including a reduction for estimated credit losses, and without carryover

of the respective portfolio's historical allowance for loan losses.  A decrease in expected cash flows in subsequent

periods may indicate that a loan is impaired, which would require the establishment of an allowance for loan

losses.  As such, selected asset quality metrics have been highlighted to distinguish between the 'originated'

portfolio and the 'acquired' portfolio.
























NON-PERFORMING ASSETS


























June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

(dollars in millions)

2016

2016

2015

2015

2015

Originated non-performing loans:











Commercial:











  Equipment financing

$

40.0

$

41.1

$

27.5

$

29.4

$

38.3

  Commercial real estate

35.4

35.9

30.2

31.8

36.5

  Commercial and industrial

34.7

41.5

44.9

62.9

52.4

    Total

110.1

118.5

102.6

124.1

127.2

Retail:











  Residential mortgage

29.9

31.1

37.2

38.2

40.9

  Home equity

17.4

18.9

19.5

21.0

21.4

  Other consumer

-

-

0.1

-

0.1

    Total

47.3

50.0

56.8

59.2

62.4

    Total originated non-performing loans (1)

157.4

168.5

159.4

183.3

189.6

REO:











  Residential

9.7

8.2

7.1

10.8

14.8

  Commercial

3.3

5.4

5.5

8.2

10.6

    Total REO

13.0

13.6

12.6

19.0

25.4

Repossessed assets

11.6

7.3

9.5

7.3

5.5

    Total non-performing assets

$

182.0

$

189.4

$

181.5

$

209.6

$

220.5














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

$

25.5

$

27.4

$

30.0

$

38.4

$

41.5














Originated non-performing loans as a percentage











  of originated loans

0.56

%

0.61

%

0.58

%

0.68

%

0.71

%

Non-performing assets as a percentage of:











  Originated loans, REO and repossessed assets

0.64

0.68

0.66

0.78

0.83

  Tangible stockholders' equity and originated











     allowance for loan losses

6.14

6.49

6.38

7.37

7.91














(1) Reported net of government guarantees totaling $15.8 million at June 30, 2016, $16.2 million at March 31, 2016, 

     $16.9 million at December 31, 2015, $17.3 million at September 30, 2015 and $16.6 million at June 30, 2015.

(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

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

(dollars in millions)

2016

2016

2015

2015

2015

Allowance for loan losses on originated loans:










  Balance at beginning of period

$

207.6

$

202.9

$

198.1

$

195.1

$

191.1

  Charge-offs

(6.1)

(7.4)

(7.8)

(6.1)

(6.0)

  Recoveries

1.0

1.7

1.6

2.0

2.8

    Net loan charge-offs

(5.1)

(5.7)

(6.2)

(4.1)

(3.2)

  Provision for loan losses

10.5

10.4

11.0

7.1

7.2

    Balance at end of period

213.0

207.6

202.9

198.1

195.1












Allowance for loan losses on acquired loans:










  Balance at beginning of period

7.9

8.1

9.4

10.3

9.8

  Charge-offs

-

(0.3)

-

-

-

  Provision for loan losses

(0.5)

0.1

(1.3)

(0.9)

0.5

    Balance at end of period

7.4

7.9

8.1

9.4

10.3

    Total allowance for loan losses

$

220.4

$

215.5

$

211.0

$

207.5

$

205.4












Commercial originated allowance for loan loss










  as a percentage of originated commercial loans

0.92

%

0.92

%

0.90

%

0.91

%

0.90

%

Retail originated allowance for loan losses










  as a percentage of originated retail loans

0.30

0.30

0.28

0.28

0.26

Total originated allowance for loan losses










  as a percentage of:










    Originated loans

0.75

0.75

0.73

0.74

0.73

    Originated non-performing loans

135.3

123.3

127.3

108.1

102.9












NET LOAN CHARGE-OFFS (RECOVERIES)





















Three Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

(dollars in millions)

2016

2016

2015

2015

2015

Commercial:










  Equipment financing

$

2.1

$

1.6

$

1.4

$

1.0

$

0.5

  Commercial and industrial

1.1

2.2

3.5

1.4

1.4

  Commercial real estate

(0.1)

0.7

(0.1)

0.5

(0.4)

    Total

3.1

4.5

4.8

2.9

1.5

Retail:










  Home equity

1.2

1.4

1.1

0.6

1.1

  Residential mortgage

0.7

-

0.1

0.4

0.5

  Other consumer

0.1

0.1

0.2

0.2

0.1

    Total

2.0

1.5

1.4

1.2

1.7

    Total net loan charge-offs

$

5.1

$

6.0

$

6.2

$

4.1

$

3.2












Net loan charge-offs to










  average total loans (annualized)

0.07

%

0.09

%

0.09

%

0.06

%

0.05

%

 

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

In addition to evaluating People's United Financial Inc. ("People's United") results of operations in accordance with U.S. generally accepted accounting principles ("GAAP"), management routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as the efficiency and tangible equity ratios, tangible book value per share and operating earnings metrics. Management believes these non-GAAP financial measures provide information useful to investors in understanding People's United's underlying operating performance and trends, and facilitates comparisons with the performance of other financial institutions. Further, the efficiency ratio and operating earnings metrics are used by management in its assessment of financial performance, including non-interest expense control, while the tangible equity ratio and tangible book value per share are used to analyze the relative strength of People's United's capital position.  

The efficiency ratio, which represents an approximate measure of the cost required by People's United to generate a dollar of revenue, is the ratio of (i) total non-interest expense (excluding goodwill impairment charges, amortization of other acquisition-related intangible assets, losses on real estate assets and non-recurring expenses, which are also excluded in arriving at operating non-interest expense) (the numerator) to (ii) net interest income on a fully taxable equivalent ("FTE") basis plus total non-interest income (including the FTE adjustment on bank-owned life insurance ("BOLI") income, and excluding gains and losses on sales of assets other than residential mortgage loans and acquired loans, and non-recurring income) (the denominator). In addition, operating lease expense is excluded from total non-interest expense and netted against operating lease income within non-interest income to conform with the reporting approach applied to fee-based businesses already presented on a net basis.  People's United 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's results can be measured and assessed on a more consistent basis from period to period. Items excluded from operating earnings, which include, but are not limited to: (i) non-recurring gains/losses; (ii) writedowns of banking house assets and related lease termination costs; (iii) severance-related costs; (iv) merger-related expenses, including acquisition integration and other costs; and (v) charges related to executive-level management separation costs, are generally also excluded when calculating the efficiency ratio. Effective with the quarter ended March 31, 2016, recurring writedowns of banking house assets and certain severance-related costs are no longer considered to be non-operating expenses. Operating earnings per share is derived by determining the per share impact of the respective adjustments to arrive at operating earnings and adding (subtracting) such amounts to (from) GAAP earnings per share. Operating return on average assets is calculated by dividing operating earnings (annualized) by average total assets. Operating return on average tangible stockholders' equity is calculated by dividing operating earnings (annualized) by average tangible stockholders' equity. The operating dividend payout ratio is calculated by dividing dividends paid by operating earnings for the respective period.   

The tangible equity ratio is the ratio of (i) tangible stockholders' equity (total stockholders' equity less goodwill and other acquisition-related intangible assets) (the numerator) to (ii) tangible assets (total assets less goodwill and other acquisition-related intangible assets) (the denominator). Tangible book value per share is calculated by dividing tangible stockholders' equity by common shares (total common shares issued, less common shares classified as treasury shares and unallocated Employee Stock Ownership Plan ("ESOP") common shares).  

In light of diversity in presentation among financial institutions, the methodologies used by People's United 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

















EFFICIENCY RATIO AND OPERATING NON-INTEREST EXPENSE









Three Months Ended


Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

(dollars in millions)

2016

2016

2015

2015

2015

2016

2015

Total non-interest expense

$  212.9

$  217.3

$  217.0

$  214.2

$  211.8

$     430.2

$     429.4

Adjustments to arrive at operating













  non-interest expense:













  Writedowns of banking house assets

-

-

(2.5)

-

(2.7)

-

(8.0)

  Severance-related costs

-

-

(1.3)

(0.1)

(0.3)

-

(1.0)

    Total

-

-

(3.8)

(0.1)

(3.0)

-

(9.0)

    Operating non-interest expense

 n/a 

 n/a 

213.2

214.1

208.8

 n/a 

420.4













Operating lease expense (1)

(9.1)

(9.2)

(9.4)

(9.2)

(9.2)

(18.3)

(18.5)

Amortization of other acquisition-related













    intangible assets

(5.8)

(5.8)

(6.1)

(5.9)

(6.0)

(11.6)

(11.9)

Other (2)

(1.8)

(1.5)

(2.2)

(1.8)

(1.8)

(3.3)

(3.8)

    Total non-interest expense for













      efficiency ratio

$  196.2

$  200.8

$  195.5

$  197.2

$  191.8

$     397.0

$     386.2













Net interest income (FTE basis)

$  247.7

$  247.4

$  245.3

$  241.1

$  237.0

$     495.1

$     470.9

Total non-interest income

85.4

82.3

93.3

87.1

83.0

167.7

172.0

    Total revenues

333.1

329.7

338.6

328.2

320.0

662.8

642.9

Adjustments:













  Operating lease expense (1)

(9.1)

(9.2)

(9.4)

(9.2)

(9.2)

(18.3)

(18.5)

  BOLI FTE adjustment

1.0

0.5

0.5

0.6

0.7

1.5

1.3

  Net security gains

-

(0.1)

-

-

-

(0.1)

-

  Gain on sale of business, net of expenses

-

-

(9.2)

-

-

-

-

  Other (3)

-

(0.7)

-

(0.1)

-

(0.7)

-

    Total revenues for efficiency ratio

$  325.0

$  320.2

$  320.5

$  319.5

$  311.5

$     645.2

$     625.7

    Efficiency ratio

60.4%

62.7%

61.0%

61.7%

61.6%

61.5%

61.7%













(1)  Operating lease expense is excluded from total non-interest expense and netted against operating lease income within

      non-interest income to conform with the reporting approach applied to fee-based businesses already presented on a net basis.

(2)  Items classified as "other" and deducted from non-interest expense for purposes of calculating the efficiency ratio include, 

      as applicable, certain franchise taxes, real estate owned expenses, contract termination costs and non-recurring expenses.

(3)  Items classified as "other" and added to (deducted from) total revenues for purposes of calculating the efficiency ratio include, 

      as applicable, asset write-offs and gains associated with the sale of branch locations.





 

 

People's United Financial, Inc.









NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued









TANGIBLE EQUITY RATIO











June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

(dollars in millions)

2016

2016

2015

2015

2015

Total stockholders' equity

$  4,830

$  4,791

$  4,732

$  4,731

$  4,686

Less: Goodwill and other









         acquisition-related intangible assets

2,076

2,079

2,088

2,085

2,091

Tangible stockholders' equity

$  2,754

$  2,712

$  2,644

$  2,646

$  2,595









Total assets

$40,150

$39,264

$38,947

$37,507

$37,208

Less: Goodwill and other









         acquisition-related intangible assets

2,076

2,079

2,088

2,085

2,091

Tangible assets

$38,074

$37,185

$36,859

$35,422

$35,117









Tangible equity ratio

7.2%

7.3%

7.2%

7.5%

7.4%









TANGIBLE BOOK VALUE PER SHARE










June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

(in millions, except per share data)

2016

2016

2015

2015

2015

Tangible stockholders' equity

$  2,754

$  2,712

$  2,644

$  2,646

$  2,595









Common shares issued

399.74

399.54

399.24

398.84

398.66

Less: Shares classified as treasury shares

89.05

89.04

89.06

89.05

89.06

         Unallocated ESOP shares

7.14

7.23

7.32

7.40

7.49

Common shares

303.55

303.27

302.86

302.39

302.11









Tangible book value per share

$    9.07

$    8.94

$    8.73

$    8.75

$    8.59

 

 

People's United Financial, Inc.








NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued








OPERATING EARNINGS










Three Months Ended

Six Months Ended


Dec. 31,

Sept. 30,

June 30,

June 30,

(dollars in millions, except per share data)

2015

2015

2015

2015

Net income, as reported

$    70.8

$    68.4

$    61.7

$               120.9

Adjustments to arrive at operating earnings:







  Writedowns of banking house assets

2.5

-

2.7

8.0

  Severance-related costs

1.3

0.1

0.3

1.0

  Gain on sale of business, net of expenses

(9.2)

-

-

-

    Total pre-tax adjustments

(5.4)

0.1

3.0

9.0

Tax effect

1.8

(0.1)

(1.0)

(3.0)

    Total adjustments, net of tax

(3.6)

-

2.0

6.0

    Operating earnings

$    67.2

$    68.4

$    63.7

$               126.9










Earnings per share, as reported

$    0.23

$    0.23

$    0.20

$                 0.40

Adjustments to arrive at operating








  earnings per share:








  Writedowns of banking house assets

0.01

-

0.01

0.02

  Severance-related costs

-

-

-

-

  Gain on sale of business, net of expenses

(0.02)

-

-

-

    Total adjustments per share

(0.01)

-

0.01

0.02

    Operating earnings per share

$    0.22

$    0.23

$    0.21

$                 0.42










Average total assets

$37,955

$37,284

$36,645

$              36,223










Operating return on








  average assets (annualized)

0.71%

0.73%

0.70%

0.70%










OPERATING RETURN ON AVERAGE TANGIBLE STOCKHOLDERS' EQUITY




Three Months Ended

Six Months Ended


Dec. 31,

Sept. 30,

June 30,

June 30,

(dollars in millions)

2015

2015

2015

2015

Operating earnings

$    67.2

$    68.4

$    63.7

$               126.9










Average stockholders' equity

$  4,736

$  4,700

$  4,689

$                4,676

Less: Average goodwill and average other







         acquisition-related intangible assets

2,092

2,088

2,094

2,094

Average tangible stockholders' equity

$  2,644

$  2,612

$  2,595

$                2,579










Operating return on average tangible








  stockholders' equity (annualized)

10.2%

10.5%

9.8%

9.8%










OPERATING DIVIDEND PAYOUT RATIO








Three Months Ended

Six Months Ended


Dec. 31,

Sept. 30,

June 30,

June 30,

(dollars in millions)

2015

2015

2015

2015

Dividends paid

$    50.6

$    50.6

$    50.5

$               100.0










Operating earnings

$    67.2

$    68.4

$    63.7

$               126.9










Operating dividend payout ratio

75.3%

73.9%

79.2%

78.8%

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-second-quarter-net-income-of-685-million-or-023-per-share-300302299.html

SOURCE People's United Financial, Inc.

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