People's United Financial Reports Second Quarter Net Income Of $0.24 Per Share And Operating Earnings Of $0.20 Per Share - WTRF 7 News Sports Weather - Wheeling Steubenville

People's United Financial Reports Second Quarter Net Income Of $0.24 Per Share And Operating Earnings Of $0.20 Per Share

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE People's United Financial, Inc.

BRIDGEPORT, Conn., July 17, 2014 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported net income of $72.3 million, or $0.24 per share, for the second quarter of 2014, compared to $62.1 million, or $0.20 per share, for the second quarter of 2013, and $53.1 million, or $0.18 per share, for the first quarter of 2014.  Included in this quarter's results is a net after-tax gain of $13.4 million ($0.04 per share) resulting from the formation of a merchant services joint venture discussed below.  Operating earnings were $59.9 million, or $0.20 per share, for the second quarter of 2014, compared to $62.4 million, or $0.20 per share, for the second quarter of 2013, and $56.5 million, or $0.19 per share, for the first quarter of 2014.

The Company's Board of Directors declared a $0.165 per share quarterly dividend, payable August 15, 2014 to shareholders of record on August 1, 2014.  Based on the closing stock price on July 16, 2014, the dividend yield on People's United Financial common stock is 4.4 percent.

"Our results this quarter demonstrate continued momentum in growing our businesses, fueled by ongoing strategic investments in people, products and services," said Jack Barnes, President and Chief Executive Officer.  "This quarter we experienced annualized deposit growth of seven percent and loan growth of 13 percent, reflecting our strong commitment to fostering customer relationships.  At the same time we continue to maintain superior asset quality metrics.  The increase in net interest income over the past several quarters primarily reflects growth in the loan portfolio despite a challenging rate environment and less income on acquired loans."

Barnes continued, "We are pleased to announce today the formation of People's United Merchant Services, a joint venture between People's United Bank and Vantiv, Inc.  The new company will offer customers a comprehensive suite of payment solutions by combining People's United's strong reputation and broad access to commercial merchants with Vantiv's deep payments expertise, innovative products, security tools, technology and processing scale.  This new partnership with Vantiv reflects our ongoing commitment to strengthen our products and services and should provide long-term growth for both companies."

Barnes concluded, "Our strong business fundamentals, ongoing ability to leverage our brand in attractive markets, and prospects for growth continue to be the foundations of our operating strength relative to others in the industry."

"The net interest margin reflects the impact of strong loan originations and the benefit of one more calendar day in this quarter," stated Kirk W. Walters, Senior Executive Vice President and Chief Financial Officer.  "We certainly are pleased with our ability to maintain operating expenses at a relatively flat level over the past several quarters.  This is quite an achievement, considering the number of strategic investments we continue to make in people and services, along with the increasing cost of regulatory compliance, and reflects our ongoing commitment to cost control."

Walters concluded, "Our results this quarter include a $21 million pre-tax gain resulting from the formation of the merchant services joint venture in which we have retained a 49 percent minority interest.  The gain represents the fair value of our entire portfolio of merchant contracts which was contributed to the joint venture and had a zero book basis under GAAP.  Also in the second quarter, People's United Bank issued $400 million of fixed-rate subordinated notes that were converted to a floating interest rate using an interest rate swap.  The notes qualify as Tier 2 capital for regulatory purposes, which will serve to bolster total risk-based capital ratios."

Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.10 percent in the second quarter of 2014, compared to 0.12 percent in the first quarter of 2014 and 0.19 percent in the second quarter of 2013.  For the originated loan portfolio, non-performing loans equaled 0.82 percent of loans at June 30, 2014, compared to 0.84 percent at March 31, 2014 and 1.18 percent at June 30, 2013.  Of note, both the loan charge-off and non-performing loans to originated loans ratios this quarter were the lowest each has been in six years.

Operating return on average assets was 0.72 percent for the second quarter of 2014, compared to 0.69 percent for the first quarter of 2014 and 0.81 percent for the second quarter of 2013.  Operating return on average tangible stockholders' equity was 9.6 percent for the second quarter of 2014, compared to 9.3 percent for the first quarter of 2014 and 9.3 percent for the second quarter of 2013.

At June 30, 2014, People's United Financial's tier 1 common and total risk-based capital ratios were 10.0 percent and 12.5 percent, respectively, and the tangible equity ratio stood at 7.9 percent. People's United Bank's tier 1 and total risk-based capital ratios were 10.8 percent and 13.5 percent, respectively, at June 30, 2014.

People's United Financial, a diversified financial services company with $34 billion in assets, provides commercial and retail banking, as well as wealth management services through a network of 407 branches in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine.  Through its subsidiaries, People's United Financial provides equipment financing, brokerage and insurance services.  Assets managed and administered, which are not reported as assets of People's United Financial, totaled $16.2 billion at June 30, 2014 compared to $15.9 billion at March 31, 2014.

2Q 2014 Financial Highlights

Summary

  • Net income was $72.3 million, or $0.24 per share.
    • Operating earnings were $59.9 million, or $0.20 per share.
  • Net interest income on a fully taxable equivalent basis increased $1.0 million from 1Q14 and totaled $232.8 million in 2Q14.
    • Interest income on acquired loans decreased $1.6 million from 1Q14 to $21.7 million.
  • Net interest margin decreased four basis points from 1Q14 to 3.13%.
    • The effect of one more calendar day in 2Q14 benefitted the margin by three basis points.
    • The effect of new loan volume at lower rates reduced the margin by seven basis points.
  • Provision for loan losses totaled $8.8 million.
    • Net loan charge-offs totaled $6.5 million, of which $5.2 million related to loans with previously-established specific reserves. Net loan charge-off ratio of 0.10% in 2Q14.
    • Reflects a $6.7 million increase in the originated allowance for loan losses due to loan growth.
    • Includes a provision for loan losses on acquired loans of $0.8 million.
  • Non-interest income was $100.1 million in 2Q14 compared to $79.9 million in 1Q14.
    • Gain on formation of merchant services joint venture, net of related expenses totaled $20.6 million in 2Q14.
    • Bank service charges increased $2.3 million from 1Q14, in part due to the seasonal nature of certain transaction-related fee categories.
    • Operating lease income decreased $1.4 million from 1Q14.
    • Insurance revenue decreased $0.9 million from 1Q14, primarily reflecting the seasonal nature of insurance renewals.
    • Investment management fees increased $0.8 million from 1Q14.
    • Assets under administration and those under full discretionary management, neither of which are reported as assets of People's United Financial, totaled $10.7 billion and $5.5 billion, respectively, at June 30, 2014, compared to $10.8 billion and $5.1 billion, respectively, at March 31, 2014.
  • Non-interest expense totaled $208.3 million in 2Q14 compared to $216.7 million in 1Q14.
    • Operating non-interest expense was $206.7 million in 2Q14 compared to $211.5 million in 1Q14.
    • Compensation and benefits expense decreased $1.1 million from 1Q14, primarily reflecting lower payroll and benefit-related costs in 2Q14.
    • Compared to 1Q14, operating lease expense decreased $2.4 million and occupancy and equipment expense decreased $1.4 million.
    • The efficiency ratio in 2Q14 decreased to 61.8% from 63.9% in 1Q14, reflecting both the increase in adjusted total revenues and the decrease in adjusted total expenses.
    • Non-operating expenses totaled $1.6 million in 2Q14 compared to $5.2 million in 1Q14.
  • The effective income tax rate was 35.0% for 2Q14 and 33.1% for the full-year of 2013.

Commercial Banking

  • Commercial banking loans increased $762 million, or 17% annualized, from March 31, 2014.
  • Average commercial banking loans totaled $18.2 billion in 2Q14, an increase of $552 million, or 13% annualized, from 1Q14.
  • The ratio of originated non-performing commercial banking loans to originated commercial banking loans was 0.77% at June 30, 2014 compared to 0.73% at March 31, 2014.
    • Non-performing commercial banking assets, excluding acquired non-performing loans, totaled $154.9 million at June 30, 2014 compared to $144.0 million at March 31, 2014.
  • Net loan charge-offs totaled $4.9 million, or 0.11% annualized, of average commercial banking loans in 2Q14, compared to $4.0 million, or 0.09% annualized, in 1Q14.
  • For the originated commercial banking portfolio, the allowance for loan losses as a percentage of loans was 0.92% at June 30, 2014 compared to 0.95% at March 31, 2014.
  • The commercial banking originated allowance for loan losses represented 120% of originated non-performing commercial banking loans at June 30, 2014, compared to 129% at March 31, 2014.
  • Commercial deposits totaled $6.6 billion at both June 30, 2014 and March 31, 2014.

Retail Banking

  • Residential mortgage loans increased $47 million, or 4% annualized, from March 31, 2014.
    • Average residential mortgage loans totaled $4.5 billion in 2Q14, an increase of $54 million, or 5% annualized, from 1Q14.
    • The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 1.04% at June 30, 2014 compared to 1.21% at March 31, 2014.
    • Net loan charge-offs totaled $0.5 million, or 0.05% annualized, of average residential mortgage loans in 2Q14, compared to $1.0 million, or 0.08% annualized, in 1Q14.
  • Home equity loans increased $18 million, or 3% annualized, from March 31, 2014.
    • Average home equity loans totaled $2.1 billion in 2Q14, unchanged from 1Q14.
    • The ratio of originated non-performing home equity loans to originated home equity loans was 0.88% at June 30, 2014 compared to 0.94% at March 31, 2014.
    • Net loan charge-offs totaled $0.8 million, or 0.14% annualized, of average home equity loans in 2Q14, compared to $1.7 million, or 0.33% annualized, in 1Q14.
  • Retail deposits (excluding brokered deposits) totaled $16.2 billion at June 30, 2014 compared to $16.4 billion at March 31, 2014.

Conference Call
On July 17, 2014, at 5 p.m., Eastern Time, People's United Financial will host a conference call to discuss this earnings announcement.  The call may be heard through www.peoples.com by selecting "Investor Relations" in the "About Us" section on the home page, and then selecting "Conference Calls" in the "News and Events" section.  Additional materials relating to the call may also be accessed at People's United Bank's web site.  The call will be archived on the web site and available for approximately 90 days.

Certain statements contained in this release are forward-looking in nature. These include all statements about People's United Financial's plans, objectives, expectations and other statements that are not historical facts, and usually use words such as "expect," "anticipate," "believe," "should" and similar expressions. Such statements represent management's current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause People's United Financial's actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors of particular importance to People's United Financial include, but are not limited to: (1) changes in general, national or regional economic conditions; (2) changes in interest rates; (3) changes in loan default and charge-off rates; (4) changes in deposit levels; (5) changes in levels of income and expense in non-interest income and expense related activities; (6) residential mortgage and secondary market activity; (7) changes in accounting and regulatory guidance applicable to banks; (8) price levels and conditions in the public securities markets generally; (9) competition and its effect on pricing, spending, third-party relationships and revenues; (10) the successful integration of acquisitions; and (11) changes in regulation resulting from or relating to financial reform legislation. People's United Financial does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

 

People's United Financial, Inc.






FINANCIAL HIGHLIGHTS













Three Months Ended


June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

(dollars in millions, except per share data)

2014

2014

2013

2013

2013

Earnings Data:






  Net interest income (fully taxable equivalent)

$       232.8

$       231.8

$       229.5

$       227.8

$       225.2

  Net interest income 

228.2

227.1

224.9

223.5

220.9

  Provision for loan losses

8.8

9.5

10.0

12.1

9.2

  Non-interest income (1)

100.1

79.9

82.5

86.1

88.2

  Non-interest expense

208.3

216.7

208.7

212.5

205.8

  Operating non-interest expense (2)

206.7

211.5

207.7

209.2

205.4

  Income before income tax expense

111.2

80.8

88.7

85.0

94.1

  Net income

72.3

53.1

59.3

58.5

62.1

  Operating earnings (2)

59.9

56.5

60.0

60.8

62.4







Selected Statistical Data:






  Net interest margin (3)

3.13%

3.17%

3.24%

3.30%

3.33%

  Return on average assets (3)

0.87

0.65

0.75

0.75

0.81

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

0.72

0.69

0.75

0.78

0.81

  Return on average tangible assets (3)

0.93

0.69

0.80

0.80

0.87

  Return on average stockholders' equity (3)

6.3

4.7

5.2

5.1

5.2

  Return on average tangible stockholders' equity (3)

11.6

8.7

9.7

9.4

9.3

  Operating return on average tangible






    stockholders' equity (2), (3)

9.6

9.3

9.8

9.8

9.3

  Efficiency ratio (2)

61.8

63.9

62.8

62.2

61.4







Common Share Data:






  Basic and diluted earnings per share

$        0.24

$        0.18

$        0.20

$        0.19

$        0.20

  Operating earnings per share (2)

0.20

0.19

0.20

0.20

0.20

  Dividends paid per share

0.165

0.1625

0.1625

0.1625

0.1625

  Dividend payout ratio

68.4%

91.5%

84.1%

86.0%

83.6%

  Operating dividend payout ratio (2)

82.5

86.0

83.0

82.7

83.2

  Book value per share (end of period)

$       15.46

$       15.35

$       15.28

$       15.07

$       15.11

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

8.41

8.26

8.17

8.14

8.20

  Stock price:






    High

15.23

15.70

15.25

15.67

15.00

    Low

14.00

13.73

14.09

14.07

12.62

    Close (end of period)

15.17

14.87

15.12

14.38

14.90

  Common shares (end of period) (in millions)

299.79

299.49

298.90

307.72

309.59

  Weighted average diluted common shares (in millions)

298.24

297.72

302.17

307.56

313.52



(1)

Three months ended June 30, 2014 includes a $20.6 million net gain resulting from the formation of a merchant services joint venture.

(2)

See Non-GAAP Financial Measures and Reconciliation to GAAP.

(3)

Annualized.










People's United Financial, Inc.



FINANCIAL HIGHLIGHTS - Continued







Six Months Ended


June 30,

(dollars in millions, except per share data)

2014

2013

Earnings Data:



  Net interest income (fully taxable equivalent)

$       464.6

$           448.5

  Net interest income 

455.3

440.2

  Provision for loan losses

18.3

21.6

  Non-interest income (1)

180.0

173.1

  Non-interest expense

425.0

417.8

  Operating non-interest expense (2)

418.2

409.4

  Income before income tax expense

192.0

173.9

  Net income

125.4

114.6

  Operating earnings (2)

116.4

120.3




Selected Statistical Data:



  Net interest margin (3)

3.15%

3.35%

  Return on average assets (3)

0.76

0.75

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

0.71

0.79

  Return on average tangible assets (3)

0.81

0.81

  Return on average stockholders' equity (3)

5.5

4.7

  Return on average tangible stockholders' equity (3)

10.2

8.3

  Operating return on average tangible



    stockholders' equity (2), (3)

9.4

8.7

  Efficiency ratio (2)

62.8

62.0




Common Share Data:



  Basic and diluted earnings per share

$        0.42

$             0.36

  Operating earnings per share (2)

0.39

0.38

  Dividends paid per share

0.3275

0.3225

  Dividend payout ratio

78.1%

91.3%

  Operating dividend payout ratio (2)

84.2

87.0

  Book value per share (end of period)

$       15.46

$           15.11

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

8.41

8.20

  Stock price:



    High

15.70

15.00

    Low

13.73

12.22

    Close (end of period)

15.17

14.90

  Common shares (end of period) (in millions)

299.79

309.59

  Weighted average diluted common shares (in millions)

297.98

319.33



(1)

Six months ended June 30, 2014 includes a $20.6 million net gain resulting from the formation of a merchant services joint venture.

(2)

See Non-GAAP Financial Measures and Reconciliation to GAAP.

(3)

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)

2014

2014

2013

2013

2013

Financial Condition Data:






  General:






    Total assets

$     33,921

$          33,112

$     33,214

$     31,511

$     31,345

    Loans 

25,455

24,629

24,390

23,227

22,866

    Securities

4,580

4,690

5,033

4,379

4,618

    Short-term investments

99

73

124

148

120

    Allowance for loan losses

193

190

188

188

186

    Goodwill and other acquisition-related intangible assets

2,115

2,121

2,127

2,134

2,140

    Deposits

24,089

23,666

22,557

22,190

21,982

    Borrowings

3,773

3,887

5,057

3,621

3,626

    Notes and debentures

1,040

639

639

639

639

    Stockholders' equity

4,636

4,596

4,568

4,638

4,678

    Total risk-weighted assets (1)

26,590

25,749

25,386

23,731

23,506

    Non-performing assets (2)

233

231

248

271

281

    Net loan charge-offs

6.5

7.0

10.4

9.6

10.8







  Average Balances:






    Loans

$     24,856

$          24,248

$     23,598

$     22,916

$     22,369

    Securities (3)

4,674

4,908

4,550

4,529

4,557

    Short-term investments

206

121

146

179

153

    Total earning assets

29,736

29,277

28,294

27,624

27,079

    Total assets

33,273

32,799

31,822

31,216

30,799

    Deposits

23,851

22,863

22,379

22,066

21,835

    Total funding liabilities

28,305

27,850

26,817

26,168

25,548

    Stockholders' equity

4,609

4,564

4,574

4,622

4,825







  Ratios:






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

0.10%

0.12%

0.18%

0.17%

0.19%

    Non-performing assets to originated loans,






      real estate owned and repossessed assets (2)

0.96

1.00

1.08

1.26

1.33

    Originated allowance for loan losses to:






      Originated loans (2)

0.75

0.78

0.78

0.82

0.85

      Originated non-performing loans (2)

91.7

92.7

81.9

74.8

71.8

    Average stockholders' equity to average total assets

13.9

13.9

14.4

14.8

15.7

    Stockholders' equity to total assets

13.7

13.9

13.8

14.7

14.9

    Tangible stockholders' equity to tangible assets (4)

7.9

8.0

7.9

8.5

8.7

    Total risk-based capital (1)

12.5

11.2

11.3

12.6

12.8



(1)

Consolidated. 

(2)

Excludes acquired loans. 

(3)

Average balances for securities are based on amortized cost. 

(4)

See Non-GAAP Financial Measures and Reconciliation to GAAP. 
















People's United Financial, Inc.





CONSOLIDATED STATEMENTS OF CONDITION











June 30,

March 31,

Dec. 31,

June 30,

(in millions)

2014

2014

2013

2013

Assets





Cash and due from banks

$     464.1

$     427.7

$     350.8

$     379.6

Short-term investments

98.9

72.7

123.6

119.5

    Total cash and cash equivalents

563.0

500.4

474.4

499.1

Securities:





  Trading account securities, at fair value

8.3

8.3

8.3

6.4

  Securities available for sale, at fair value 

3,724.0

3,848.1

4,208.2

4,439.9

  Securities held to maturity, at amortized cost

672.1

658.1

640.5

56.1

  Federal Home Loan Bank stock, at cost

175.7

175.7

175.7

115.4

    Total securities

4,580.1

4,690.2

5,032.7

4,617.8

Loans held for sale

34.4

17.4

23.3

68.3

Loans: 





  Commercial real estate

9,193.2

9,003.7

8,921.6

8,077.3

  Commercial

9,544.4

8,971.6

8,895.2

8,560.8

  Residential mortgage

4,552.0

4,505.4

4,416.6

4,084.2

  Consumer

2,165.4

2,148.5

2,156.9

2,143.9

    Total loans

25,455.0

24,629.2

24,390.3

22,866.2

  Less allowance for loan losses

(192.6)

(190.3)

(187.8)

(185.7)

    Total loans, net

25,262.4

24,438.9

24,202.5

22,680.5

Goodwill and other acquisition-related intangible assets

2,114.9

2,121.1

2,127.3

2,140.4

Premises and equipment

289.3

292.5

304.1

320.1

Bank-owned life insurance

341.3

340.3

339.4

337.2

Other assets

735.8

711.6

710.0

681.5

    Total assets

$ 33,921.2

$ 33,112.4

$ 33,213.7

$ 31,344.9






Liabilities





Deposits: 





  Non-interest-bearing

$   5,542.3

$   5,372.8

$   5,312.2

$   5,116.0

  Savings, interest-bearing checking and money market

14,115.0

13,858.1

12,862.2

12,278.6

  Time

4,431.4

4,434.6

4,382.9

4,587.2

    Total deposits

24,088.7

23,665.5

22,557.3

21,981.8

Borrowings:





  Federal Home Loan Bank advances

2,798.2

2,619.0

3,719.8

2,206.4

  Federal funds purchased

331.0

775.0

825.0

931.0

  Customer repurchase agreements

441.6

486.6

501.2

487.7

  Repurchase agreements

199.7

1.0

1.0

1.0

  Other borrowings

2.5

5.8

10.0

-

    Total borrowings

3,773.0

3,887.4

5,057.0

3,626.1

Notes and debentures

1,040.0

639.3

639.1

638.9

Other liabilities 

384.0

324.4

391.9

420.2

    Total liabilities

29,285.7

28,516.6

28,645.3

26,667.0






Stockholders' Equity





Common stock

3.9

3.9

3.9

3.9

Additional paid-in capital 

5,281.1

5,276.4

5,277.0

5,268.8

Retained earnings

800.6

778.2

779.0

763.1

Accumulated other comprehensive loss

(126.2)

(137.5)

(155.1)

(178.8)

Unallocated common stock of Employee Stock Ownership Plan, at cost

(162.6)

(164.4)

(166.2)

(169.8)

Treasury stock, at cost

(1,161.3)

(1,160.8)

(1,170.2)

(1,009.3)

    Total stockholders' equity

4,635.5

4,595.8

4,568.4

4,677.9

    Total liabilities and stockholders' equity

$ 33,921.2

$ 33,112.4

$ 33,213.7

$ 31,344.9



















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)

2014

2014

2013

2013

2013

Interest and dividend income:






  Commercial real estate

$       88.6

$       88.7

$       88.5

$       90.0

$       87.2

  Commercial

87.5

85.3

86.7

86.4

87.2

  Residential mortgage

37.8

37.8

36.4

34.7

34.3

  Consumer

18.4

18.3

18.7

18.6

18.7

    Total interest on loans

232.3

230.1

230.3

229.7

227.4

  Securities

24.1

25.1

22.8

22.0

22.2

  Loans held for sale

0.2

0.1

0.2

0.5

0.4

  Short-term investments

0.1

0.1

0.1

-

0.1

    Total interest and dividend income

256.7

255.4

253.4

252.2

250.1

Interest expense:






  Deposits 

19.7

19.3

19.7

20.1

20.5

  Borrowings 

2.8

3.1

2.9

2.7

2.6

  Notes and debentures

6.0

5.9

5.9

5.9

6.1

    Total interest expense

28.5

28.3

28.5

28.7

29.2

    Net interest income

228.2

227.1

224.9

223.5

220.9

Provision for loan losses 

8.8

9.5

10.0

12.1

9.2

    Net interest income after provision for loan losses

219.4

217.6

214.9

211.4

211.7

Non-interest income:






  Bank service charges

32.8

30.5

31.8

33.3

32.1

  Investment management fees

10.6

9.8

9.6

9.2

9.4

  Operating lease income

9.9

11.3

9.4

8.7

8.1

  Commercial banking lending fees

7.4

8.8

9.5

9.2

8.3

  Insurance revenue

6.8

7.7

6.7

9.1

7.1

  Brokerage commissions

3.6

3.2

3.7

3.3

3.4

  Customer interest rate swap income, net

2.2

1.4

3.9

3.2

2.4

  Net gains on sales of residential mortgage loans

-

0.8

1.0

3.9

4.2

  Net (losses) gains on sales of acquired loans

(0.4)

-

(0.1)

-

5.8

  Gain on merchant services joint venture, net of expenses

20.6

-

-

-

-

  Other non-interest income

6.6

6.4

7.0

6.2

7.4

    Total non-interest income

100.1

79.9

82.5

86.1

88.2

Non-interest expense:






  Compensation and benefits 

109.3

110.4

107.6

106.9

104.4

  Occupancy and equipment 

36.6

38.0

36.5

36.7

36.9

  Professional and outside service fees

14.9

15.3

15.7

16.1

14.9

  Regulatory assessments

9.0

8.7

8.4

8.6

8.6

  Operating lease expense

8.7

11.1

8.4

7.8

7.6

  Amortization of other acquisition-related intangible assets

6.2

6.2

6.6

6.5

6.6

  Other non-interest expense

23.6

27.0

25.5

29.9

26.8

    Total non-interest expense (1)

208.3

216.7

208.7

212.5

205.8

    Income before income tax expense

111.2

80.8

88.7

85.0

94.1

Income tax expense

38.9

27.7

29.4

26.5

32.0

    Net income

$       72.3

$       53.1

$       59.3

$       58.5

$       62.1







Basic and diluted earnings per common share

$       0.24

$       0.18

$       0.20

$       0.19

$       0.20



(1)

Total non-interest expense includes $1.6 million, $5.2 million, $1.0 million, $3.3 million and $0.4 million of non-operating expenses for the three months ended June 30, 2014, March 31, 2014, Dec. 31, 2013, Sept. 30, 2013 and June 30, 2013, 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)

2014

2013

Interest and dividend income:



  Commercial real estate

$     177.3

$     172.7

  Commercial

172.8

173.9

  Residential mortgage

75.6

68.8

  Consumer

36.7

37.5

    Total interest on loans

462.4

452.9

  Securities

49.2

44.9

  Loans held for sale

0.3

0.8

  Short-term investments

0.2

0.2

    Total interest and dividend income

512.1

498.8

Interest expense:



  Deposits 

39.0

41.3

  Borrowings 

5.9

4.9

  Notes and debentures

11.9

12.4

    Total interest expense

56.8

58.6

    Net interest income

455.3

440.2

Provision for loan losses 

18.3

21.6

    Net interest income after provision for loan losses

437.0

418.6

Non-interest income:



  Bank service charges

63.3

62.2

  Operating lease income

21.2

16.4

  Investment management fees

20.4

18.4

  Commercial banking lending fees

16.2

20.5

  Insurance revenue

14.5

15.4

  Brokerage commissions

6.8

6.7

  Customer interest rate swap income, net

3.6

3.7

  Net gains on sales of residential mortgage loans

0.8

9.9

  Net (losses) gains on sales of acquired loans

(0.4)

5.8

  Gain on merchant services joint venture, net of expenses

20.6

-

  Other non-interest income

13.0

14.1

    Total non-interest income

180.0

173.1

Non-interest expense:



  Compensation and benefits 

219.7

212.6

  Occupancy and equipment 

74.6

74.8

  Professional and outside service fees

30.2

28.8

  Regulatory assessments

17.7

16.8

  Operating lease expense

19.8

15.1

  Amortization of other acquisition-related intangible assets

12.4

13.1

  Other non-interest expense

50.6

56.6

    Total non-interest expense (1)

425.0

417.8

    Income before income tax expense

192.0

173.9

Income tax expense

66.6

59.3

    Net income

$     125.4

$     114.6




Basic and diluted earnings per common share

$       0.42

$       0.36



(1)

Total non-interest expense includes $6.8 million and $8.4 million of non-operating expenses for the six months ended June 30, 2014 and 2013, respectively. 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, 2014

March 31, 2014

Three months ended

Average


Yield/

Average


Yield/

(dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate

Assets:







Short-term investments

$     206.3

$    0.1

0.21%

$     120.9

$    0.1

0.19%

Securities (2)

4,673.5

26.4

2.26

4,907.9

27.3

2.23

Loans:







  Commercial (3)

9,087.1

89.8

3.95

8,702.7

87.8

4.04

  Commercial real estate

9,072.3

88.6

3.91

8,904.5

88.7

3.98

  Residential mortgage

4,539.5

38.0

3.35

4,482.4

37.9

3.38

  Consumer

2,157.1

18.4

3.41

2,158.7

18.3

3.40

    Total loans

24,856.0

234.8

3.78

24,248.3

232.7

3.84

    Total earning assets

29,735.8

$261.3

3.52%

29,277.1

$260.1

3.55%

Other assets

3,537.0



3,521.7



    Total assets

$ 33,272.8



$ 32,798.8










Liabilities and stockholders' equity:







Deposits:







  Non-interest-bearing

$  5,299.7

$      -

-   %

$  5,187.5

$      -

-   %

  Savings, interest-bearing checking







    and money market

14,138.0

9.1

0.26

13,278.3

8.6

0.26

  Time

4,413.3

10.6

0.96

4,397.6

10.7

0.98

    Total deposits

23,851.0

19.7

0.33

22,863.4

19.3

0.34

Borrowings:







  Federal Home Loan Bank advances

2,770.6

2.3

0.33

3,221.6

2.6

0.32

  Federal funds purchased

405.9

0.2

0.19

610.3

0.3

0.17

  Customer repurchase agreements

472.8

0.2

0.20

507.6

0.2

0.19

  Repurchase agreements

138.8

0.1

0.24

1.0

-

1.75

  Other borrowings  

4.2

-

-

7.3

-

0.05

    Total borrowings

3,792.3

2.8

0.30

4,347.8

3.1

0.28

Notes and debentures

661.2

6.0

3.64

639.2

5.9

3.69

    Total funding liabilities

28,304.5

$  28.5

0.40%

27,850.4

$  28.3

0.41%

Other liabilities

359.8



384.3



    Total liabilities

28,664.3



28,234.7



Stockholders' equity

4,608.5



4,564.1



    Total liabilities and







      stockholders' equity

$ 33,272.8



$ 32,798.8










Net interest income/spread (4)


$232.8

3.12%


$231.8

3.14%








Net interest margin



3.13%



3.17%



(1)

Average yields earned and rates paid are annualized.       

(2)

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

(3)

Includes commercial and industrial loans and equipment financing loans.       

(4)

Fully taxable equivalent adjustment was $4.6 million, $4.7 million and $4.3 million for the three months ended June 30, 2014, March 31, 2014 and June 30, 2013, respectively.       













People's United Financial, Inc.




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






June 30, 2013

Three months ended

Average


Yield/

(dollars in millions)

Balance

Interest

Rate

Assets:




Short-term investments

$     152.4

$    0.1

0.18%

Securities (2)

4,556.9

24.3

2.13

Loans:




  Commercial (3)

8,424.6

89.4

4.25

  Commercial real estate

7,757.5

87.2

4.50

  Residential mortgage

4,048.5

34.7

3.43

  Consumer

2,138.6

18.7

3.49

    Total loans

22,369.2

230.0

4.11

    Total earning assets

27,078.5

$254.4

3.76%

Other assets

3,720.3



    Total assets

$ 30,798.8







Liabilities and stockholders' equity:




Deposits:




  Non-interest-bearing

$  4,960.8

$      -

-   %

  Savings, interest-bearing checking




    and money market

12,316.4

8.3

0.27

  Time

4,558.2

12.2

1.07

    Total deposits

21,835.4

20.5

0.38

Borrowings:




  Federal Home Loan Bank advances

1,778.3

2.0

0.44

  Federal funds purchased

788.0

0.4

0.19

  Customer repurchase agreements

492.3

0.2

0.19

  Repurchase agreements

1.0

-

1.75

  Other borrowings  

-

-

-

    Total borrowings

3,059.6

2.6

0.34

Notes and debentures

653.1

6.1

3.75

    Total funding liabilities

25,548.1

$  29.2

0.46%

Other liabilities

425.8



    Total liabilities

25,973.9



Stockholders' equity

4,824.9



    Total liabilities and




      stockholders' equity

$ 30,798.8







Net interest income/spread (4)


$225.2

3.30%





Net interest margin



3.33%



(1)

Average yields earned and rates paid are annualized.       

(2)

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

(3)

Includes commercial and industrial loans and equipment financing loans.       

(4)

Fully taxable equivalent adjustment was $4.6 million, $4.7 million and $4.3 million for the three months ended June 30, 2014, March 31, 2014 and June 30, 2013, respectively.       






















People's United Financial, Inc.







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












June 30, 2014

June 30, 2013

Six months ended

Average


Yield/

Average


Yield/

(dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate

Assets:







Short-term investments

$     163.8

$    0.2

0.20%

$     149.4

$    0.2

0.19%

Securities (2)

4,790.1

53.7

2.24

4,552.5

48.8

2.14

Loans:







  Commercial (3)

8,896.0

177.6

3.99

8,334.8

178.3

4.28

  Commercial real estate

8,988.8

177.3

3.94

7,579.5

172.7

4.56

  Residential mortgage

4,511.1

75.9

3.37

3,991.8

69.6

3.49

  Consumer

2,157.9

36.7

3.40

2,143.3

37.5

3.50

    Total loans

24,553.8

467.5

3.81

22,049.4

458.1

4.16

    Total earning assets

29,507.7

$521.4

3.53%

26,751.3

$507.1

3.79%

Other assets

3,529.4



3,738.8



    Total assets

$ 33,037.1



$ 30,490.1










Liabilities and stockholders' equity:







Deposits:







  Non-interest-bearing

$  5,243.9

$      -

-   %

$  4,920.1

$      -

-   %

  Savings, interest-bearing checking and money market

13,710.5

17.7

0.26

12,180.0

16.3

0.27

  Time

4,405.5

21.3

0.97

4,597.5

25.0

1.09

    Total deposits

23,359.9

39.0

0.33

21,697.6

41.3

0.38

Borrowings:







  Federal Home Loan Bank advances

2,994.9

4.9

0.33

1,562.3

3.7

0.48

  Federal funds purchased

507.5

0.4

0.18

696.2

0.7

0.19

  Customer repurchase agreements

490.1

0.5

0.20

525.8

0.5

0.20

  Repurchase agreements

70.3

0.1

0.25

1.0

-

1.75

  Other borrowings  

5.8

-

0.03

-

-

-

    Total borrowings

4,068.6

5.9

0.29

2,785.3

4.9

0.35

Notes and debentures

650.3

11.9

3.66

656.1

12.4

3.78

    Total funding liabilities

28,078.8

$  56.8

0.40%

25,139.0

$  58.6

0.47%

Other liabilities

371.9



436.9



    Total liabilities

28,450.7



25,575.9



Stockholders' equity

4,586.4



4,914.2



    Total liabilities and stockholders' equity

$ 33,037.1



$ 30,490.1










Net interest income/spread (4)


$464.6

3.13%


$448.5

3.32%








Net interest margin



3.15%



3.35%



(1)

Average yields earned and rates paid are annualized.     

(2)

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

(3)

Includes commercial and industrial loans and equipment financing loans.     

(4)

Fully taxable equivalent adjustment was $9.3 million and $8.3 million for the six months ended June 30, 2014 and 2013, 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)

2014

2014

2013

2013

2013

Originated non-performing loans:






Commercial:






  Commercial real estate

$        59.7

$        60.1

$        70.8

$        69.8

$        70.2

  Commercial and industrial

45.8

41.7

43.8

66.7

68.6

  Equipment financing

30.7

22.0

23.2

21.2

27.8

    Total

136.2

123.8

137.8

157.7

166.6

Retail:






  Residential mortgage

44.8

51.3

58.9

59.5

59.6

  Home equity

18.0

19.0

19.8

19.9

21.0

  Other consumer

0.1

0.2

0.1

0.1

0.1

    Total

62.9

70.5

78.8

79.5

80.7

    Total originated non-performing loans (1)

199.1

194.3

216.6

237.2

247.3

REO:






  Residential

14.9

17.0

13.6

14.6

16.0

  Commercial

13.9

16.5

13.1

13.3

10.9

    Total REO

28.8

33.5

26.7

27.9

26.9

Repossessed assets

4.8

3.7

4.5

6.1

6.3

    Total non-performing assets

$      232.7

$      231.5

$      247.8

$      271.2

$      280.5







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

$      118.3

$      145.7

$      142.5

$      154.2

$      159.0







Originated non-performing loans as a percentage






  of originated loans

0.82%

0.84%

0.95%

1.10%

1.18%

Non-performing assets as a percentage of:






  Originated loans, REO and repossessed assets

0.96

1.00

1.08

1.26

1.33

  Tangible stockholders' equity and originated






     allowance for loan losses

8.61

8.72

9.47

10.12

10.33



(1)

Reported net of government guarantees totaling $18.4 million at June 30, 2014, $19.2 million at March 31, 2014, $19.4 million at Dec. 31, 2013, $19.8 million at Sept. 30, 2013 and $20.4 million at June 30, 2013.     

(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)

2014

2014

2013

2013

2013

Allowance for loan losses on originated loans:






  Balance at beginning of period

$      180.0

$      177.5

$      177.5

$      177.5

$      177.5

  Charge-offs

(8.1)

(6.4)

(11.4)

(10.7)

(12.0)

  Recoveries

2.6

0.9

1.3

1.2

1.9

    Net loan charge-offs

(5.5)

(5.5)

(10.1)

(9.5)

(10.1)

  Provision for loan losses

8.0

8.0

10.1

9.5

10.1

    Balance at end of period

182.5

180.0

177.5

177.5

177.5







Allowance for loan losses on acquired loans:






  Balance at beginning of period

10.3

10.3

10.7

8.2

9.8

  Charge-offs

(1.0)

(1.5)

(0.3)

(0.1)

(0.7)

  Provision for loan losses

0.8

1.5

(0.1)

2.6

(0.9)

    Balance at end of period

10.1

10.3

10.3

10.7

8.2

    Total allowance for loan losses

$      192.6

$      190.3

$      187.8

$      188.2

$      185.7







Commercial originated allowance for loan loss






  as a percentage of originated commercial loans

0.92%

0.95%

0.95%

1.02%

1.05%

Retail originated allowance for loan losses






  as a percentage of originated retail loans

0.30

0.32

0.30

0.31

0.31

Total originated allowance for loan losses






  as a percentage of:






    Originated loans

0.75

0.78

0.78

0.82

0.85

    Originated non-performing loans

91.7

92.7

81.9

74.8

71.8







NET LOAN CHARGE-OFFS (RECOVERIES)













Three Months Ended


June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

(dollars in millions)

2014

2014

2013

2013

2013

Commercial:






  Commercial real estate

$         3.0

$         2.9

$         2.1

$        (0.1)

$         4.7

  Commercial and industrial

1.8

0.6

3.7

6.4

1.5

  Equipment financing

0.1

0.5

0.8

0.9

0.7

    Total

4.9

4.0

6.6

7.2

6.9

Retail:






  Residential mortgage

0.5

1.0

1.5

0.4

2.3

  Home equity

0.8

1.7

2.0

1.6

1.4

  Other consumer

0.3

0.3

0.3

0.4

0.2

    Total

1.6

3.0

3.8

2.4

3.9

    Total

$         6.5

$         7.0

$        10.4

$         9.6

$        10.8







Net loan charge-offs to






  average total loans (annualized)

0.10%

0.12%

0.18%

0.17%

0.19%

 

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

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

The efficiency ratio, which represents an approximate measure of the cost required by People's United Financial to generate a dollar of revenue, is the ratio of (i) total non-interest expense (excluding goodwill impairment charges, amortization of other acquisition-related intangible assets, losses on real estate assets and non-recurring expenses) (the numerator) to (ii) net interest income on a fully taxable equivalent ("FTE") basis plus total non-interest income (including the FTE adjustment on bank-owned life insurance ("BOLI") income, and excluding gains and losses on sales of assets other than residential mortgage loans and acquired loans, and non-recurring income) (the denominator). 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 our other fee-based businesses that are already presented on a net basis.  People's United Financial generally considers an item of income or expense to be non-recurring if it is not similar to an item of income or expense of a type incurred within the last two years and is not similar to an item of income or expense of a type reasonably expected to be incurred within the following two years.      

Operating earnings exclude from net income those items that management considers to be of such a non-recurring or infrequent nature that, by excluding such items (net of income taxes), People's United Financial's results can be measured and assessed on a more consistent basis from period to period. Items excluded from operating earnings, which include, but are not limited to: (i) non-recurring gains/losses; (ii) merger-related expenses, including acquisition integration and other costs; (iii) charges related to executive-level management separation costs; (iv) severance-related costs; and (v) 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.      

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

Six Months Ended


June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

(dollars in millions)

2014

2014

2013

2013

2013

2014

2013

Total non-interest expense

$      208.3

$      216.7

$      208.7

$      212.5

$      205.8

$      425.0

$      417.8

Adjustments to arrive at operating








  non-interest expense:








  Writedowns of banking house assets

-

(4.4)

-

(2.8)

-

(4.4)

(6.2)

  Severance-related costs

(1.6)

(0.8)

(0.4)

(0.5)

(0.4)

(2.4)

(1.9)

  Acquisition integration and other costs

-

-

(0.6)

-

-

-

(0.3)

    Total

(1.6)

(5.2)

(1.0)

(3.3)

(0.4)

(6.8)

(8.4)

    Operating non-interest expense

206.7

211.5

207.7

209.2

205.4

418.2

409.4









  Operating lease expense (1)

(8.7)

(11.1)

(8.4)

(7.8)

(7.6)

(19.8)

(15.1)

  Amortization of other acquisition-related








    intangible assets

(6.2)

(6.2)

(6.6)

(6.5)

(6.6)

(12.4)

(13.1)

  Other (2)

(3.7)

(2.0)

(1.4)

(4.0)

(3.5)

(5.7)

(5.0)

    Total non-interest expense for efficiency ratio

$      188.1

$      192.2

$      191.3

$      190.9

$      187.7

$      380.3

$      376.2









Net interest income (FTE basis)

$      232.8

$      231.8

$      229.5

$      227.8

$      225.2

$      464.6

$      448.5

Total non-interest income

100.1

79.9

82.5

86.1

88.2

180.0

173.1

    Total revenues

332.9

311.7

312.0

313.9

313.4

644.6

621.6

Adjustments:








  Gain on merchant services joint venture,








    net of expenses

(20.6)

-

-

-

-

(20.6)

-

  Operating lease expense (1)

(8.7)

(11.1)

(8.4)

(7.8)

(7.6)

(19.8)

(15.1)

  BOLI FTE adjustment

0.6

0.6

0.7

0.6

0.4

1.2

0.8

  Net security gains

-

(0.1)

-

-

-

(0.1)

-

  Other (3)

-

(0.1)

0.1

-

(0.3)

(0.1)

(1.0)

    Total revenues for efficiency ratio

$      304.2

$      301.0

$      304.4

$      306.7

$      305.9

$      605.2

$      606.3

    Efficiency ratio

61.8%

63.9%

62.8%

62.2%

61.4%

62.8%

62.0%



(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 our other fee-based businesses that are already presented on a net basis.       

(2)

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

(3)

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

























People's United Financial, Inc.





NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued










OPERATING EARNINGS









Three Months Ended

Six Months Ended


June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

(dollars in millions, except per share data)

2014

2014

2013

2013

2013

2014

2013

Net income, as reported

$        72.3

$        53.1

$        59.3

$        58.5

$        62.1

$      125.4

$      114.6

Adjustments to arrive at operating earnings:








  Gain on merchant services joint venture,








    net of expenses

(20.6)

-

-

-

-

(20.6)

-

  Writedowns of banking house assets

-

4.4

-

2.8

-

4.4

6.2

  Severance-related costs

1.6

0.8

0.4

0.5

0.4

2.4

1.9

  Acquisition integration and other costs

-

-

0.6

-

-

-

0.3

    Total pre-tax adjustments

(19.0)

5.2

1.0

3.3

0.4

(13.8)

8.4

Tax effect

6.6

(1.8)

(0.3)

(1.0)

(0.1)

4.8

(2.7)

    Total adjustments, net of tax

(12.4)

3.4

0.7

2.3

0.3

(9.0)

5.7

    Operating earnings

$        59.9

$        56.5

$        60.0

$        60.8

$        62.4

$      116.4

$      120.3









Earnings per share, as reported

$        0.24

$        0.18

$        0.20

$        0.19

$        0.20

$        0.42

$        0.36

Adjustments to arrive at operating








  earnings per share:








  Gain on merchant services joint venture,








    net of expenses

(0.04)

-

-

-

-

(0.04)

-

  Writedowns of banking house assets

-

0.01

-

0.01

-

0.01

0.02

  Severance-related costs

-

-

-

-

-

-

-

  Acquisition integration and other costs

-

-

-

-

-

-

-

    Total adjustments per share

(0.04)

0.01

-

0.01

-

(0.03)

0.02

    Operating earnings per share

$        0.20

$        0.19

$        0.20

$        0.20

$        0.20

$        0.39

$        0.38









Average total assets

$    33,273

$    32,799

$    31,822

$    31,216

$    30,799

$    33,037

$    30,490









Operating return on








  average assets (annualized)

0.72%

0.69%

0.75%

0.78%

0.81%

0.71%

0.79%









OPERATING RETURN ON AVERAGE TANGIBLE STOCKHOLDERS' EQUITY













Three Months Ended

Six Months Ended


June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

(dollars in millions)

2014

2014

2013

2013

2013

2014

2013

Operating earnings

$        59.9

$        56.5

$        60.0

$        60.8

$        62.4

$      116.4

$      120.3









Average stockholders' equity

$      4,609

$      4,564

$      4,574

$      4,622

$      4,825

$      4,586

$      4,914

Less: Average goodwill and average other








         acquisition-related intangible assets

2,118

2,125

2,131

2,137

2,144

2,121

2,147

Average tangible stockholders' equity

$      2,491

$      2,439

$      2,443

$      2,485

$      2,681

$      2,465

$      2,767









Operating return on average tangible








  stockholders' equity (annualized)

9.6%

9.3%

9.8%

9.8%

9.3%

9.4%

8.7%

























People's United Financial, Inc.






NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued










OPERATING DIVIDEND PAYOUT RATIO








Three Months Ended

Six Months Ended


June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

(dollars in millions)

2014

2014

2013

2013

2013

2014

2013

Dividends paid

$        49.4

$        48.6

$        49.8

$        50.3

$        51.9

$        98.0

$      104.7









Operating earnings

$        59.9

$        56.5

$        60.0

$        60.8

$        62.4

$      116.4

$      120.3









Operating dividend payout ratio

82.5%

86.0%

83.0%

82.7%

83.2%

84.2%

87.0%









TANGIBLE EQUITY RATIO









June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,



(dollars in millions)

2014

2014

2013

2013

2013



Total stockholders' equity

$      4,636

$      4,596

$      4,568

$      4,638

$      4,678



Less: Goodwill and other








         acquisition-related intangible assets

2,115

2,121

2,127

2,134

2,140



Tangible stockholders' equity

$      2,521

$      2,475

$      2,441

$      2,504

$      2,538











Total assets

$    33,921

$    33,112

$    33,214

$    31,511

$    31,345



Less: Goodwill and other








         acquisition-related intangible assets

2,115

2,121

2,127

2,134

2,140



Tangible assets

$    31,806

$    30,991

$    31,087

$    29,377

$    29,205











Tangible equity ratio

7.9%

8.0%

7.9%

8.5%

8.7%











TANGIBLE BOOK VALUE PER SHARE







June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,



(in millions, except per share data)

2014

2014

2013

2013

2013



Tangible stockholders' equity

$      2,521

$      2,475

$      2,441

$      2,504

$      2,538











Common shares issued

396.66

396.45

396.45

396.44

396.32



Less: Shares classified as treasury shares

89.03

89.03

89.54

80.62

78.54



         Unallocated ESOP shares

7.84

7.93

8.01

8.10

8.19



Common shares

299.79

299.49

298.90

307.72

309.59











Tangible book value per share

$        8.41

$        8.26

$        8.17

$        8.14

$        8.20



 

 

©2012 PR Newswire. All Rights Reserved.