People's United Financial Reports Fourth Quarter Net Income of $75.9 Million, or $0.24 Per Common Share
Donnerstag, 19.01.2017 22:05 von PR Newswire
PR Newswire
BRIDGEPORT, Conn., Jan. 19, 2017
BRIDGEPORT, Conn., Jan. 19, 2017 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported net income of $75.9 million, or $0.24 per common share, for the fourth quarter of 2016, compared to $70.8 million, or $0.23 per common share, for the fourth quarter of 2015, and $73.7 million, or $0.24 per common share, for the third quarter of 2016.
Included in this quarter's results were merger-related and acquisition integration costs of $1.6 million ($1.0 million after-tax), or less than $0.01 per common share, compared to $3.1 million ($2.1 million after-tax), or $0.01 per common share, for the third quarter of 2016. Fourth quarter 2015 results included a gain of $9.2 million ($6.1 million after-tax), or $0.02 per common share, resulting from the sale of the Company's payroll services business.
For the year ended December 31, 2016, net income totaled $281.0 million, or $0.92 per common share, compared to $260.1 million, or $0.86 per common share, for 2015.
The Company's Board of Directors declared a $0.17 per share quarterly dividend, payable February 15, 2017 to shareholders of record on February 1, 2017. Based on the closing stock price on January 18, 2017, the dividend yield on People's United Financial common stock is 3.5 percent.
"We are pleased with the Company's financial and operating performance this year," commented Jack Barnes, President and Chief Executive Officer. "Full year net income of $281 million is the highest in the Company's history and return on average tangible common equity was 10.2 percent. Our straightforward, solutions-oriented approach to banking enabled us to further expand client relationships and forge new ones as demonstrated by another year of growth in loans, deposits and wealth management assets. We continued to improve operating leverage during the year through revenue growth as well as proactive expense management which has limited the increase in expenses to an average annual rate of less than one percent over the last five years."
Barnes continued, "We strengthened fee income generating capabilities over the course of the year through infrastructure investments and acquisitions, most notably the addition of Gerstein Fisher which closed in early November. We also continued to strategically add talent across the organization to further drive revenue growth. Earlier in the year, we announced the acquisition of Suffolk Bancorp which upon closing will deepen our presence in the New York metro area."
Barnes concluded, "We continually strive to balance and utilize six levers to create shareholder value: enhancing client-focused capabilities, growing the balance sheet, maintaining excellent asset quality, diversifying revenues, controlling costs and deploying capital efficiently. As such, we enter 2017 well-positioned across our diverse portfolio of businesses and attractive Northeast footprint to further deliver exceptional service to clients and profitable growth to shareholders."
"Our fourth quarter performance provided a strong finish to the year as evidenced by record quarterly net income of $75.9 million and a return on average tangible common equity of 10.7 percent," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "Net income increased seven percent from the prior year quarter due to higher net interest income and continued expense control. As a result, the efficiency ratio was 59.3 percent, an improvement of 170 basis points from a year ago."
Rosato concluded, "Loans grew five percent on an annualized basis, marking the 25th consecutive quarter of growth. The increase was driven by strong results in commercial real estate and residential mortgage, partially offset by lower mortgage warehouse lending balances. We maintained excellent asset quality across each portfolio, reflected by net charge-offs as a percentage of average loans of only six basis points for the quarter. Deposit growth was three percent annualized, while the overall cost of deposits remained consistent with the third quarter. Furthermore, we issued $250 million of preferred stock which enhanced our already strong capital position."
At December 31, 2016, People's United Financial's common equity tier 1 capital and total risk-based capital ratios were 9.9 percent and 12.5 percent, respectively, and the tangible common 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 11.3 percent and 13.4 percent, respectively, at December 31, 2016.
Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.06 percent in the fourth quarter of 2016, a slight increase from 0.04 percent in the third quarter of 2016, but lower than 0.09 percent in the fourth quarter of 2015. For the originated loan portfolio, non-performing loans equaled 0.51 percent of loans at December 31, 2016, a decrease from 0.54 percent at September 30, 2016 and 0.58 percent at December 31, 2015.
Return on average assets of 0.75 percent for the fourth quarter of 2016 was an increase from 0.73 percent in the third quarter of 2016 and unchanged from the fourth quarter of 2015. Return on average tangible common equity of 10.7 percent in the fourth quarter of 2016 was unchanged from both the third quarter of 2016 and fourth quarter of 2015.
People's United Financial, Inc., a diversified financial services company with $41 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.
4Q 2016 Financial Highlights
Summary
- Net income totaled $75.9 million, or $0.24 per common share.
- Net income available to common shareholders totaled $74.1 million.
- Operating earnings totaled $75.1 million, or $0.24 per common share (see Non-GAAP Financial Measures and Reconciliation to GAAP).
- Net interest income totaled $246.8 million in 4Q16 compared to $245.3 million in 3Q16.
- Net interest margin decreased two basis points from 3Q16 to 2.78% reflecting:
- Higher yield on the securities portfolio (increase of two basis points).
- New loan volume at rates lower than the existing portfolio (decrease of three basis points).
- Higher rate on borrowings (decrease of one basis point).
- Provision for loan losses totaled $7.7 million.
- Net loan charge-offs totaled $4.7 million.
- Net loan charge-off ratio of 0.06% in 4Q16.
- Non-interest income was $84.2 million in 4Q16 compared to $90.8 million in 3Q16.
- Investment management fees increased $2.6 million, primarily reflecting the benefit from the addition of Gerstein Fisher in early November.
- Net gains on sales of residential mortgages increased $0.7 million.
- Recorded a $6.3 million gain in 4Q16 (included in other non-interest income) from the sale of an ownership interest in a legacy privately-held investment.
- Insurance revenue decreased $3.0 million, reflecting the seasonal nature of commercial insurance renewals.
- Operating lease income decreased $1.7 million.
- Bank service charges decreased $1.1 million.
- Net security losses in 4Q16 totaled $6.0 million.
- At December 31, 2016, assets under administration, which are not reported as assets of People's United Financial, totaled $21.3 billion, of which $8.0 billion are under discretionary management, compared to $18.2 billion and $5.7 billion, respectively, at September 30, 2016.
- Non-interest expense totaled $217.2 million in 4Q16 compared to $221.4 million in 3Q16.
- Operating non-interest expense totaled $215.6 million in 4Q16 (see Non-GAAP Financial Measures and Reconciliation to GAAP).
- Compensation and benefits expense, excluding $0.7 million of acquisition integration costs in 4Q16, decreased $2.8 million, primarily reflecting lower payroll and benefit-related costs in 4Q16.
- Professional and outside services expense, excluding $0.9 million and $3.1 million of merger-related expenses in 4Q16 and 3Q16, respectively, increased $0.8 million.
- Regulatory assessments expense increased $0.5 million.
- The efficiency ratio was 59.3% in 4Q16 compared to 59.9% in 3Q16 (see Non-GAAP Financial Measures and Reconciliation to GAAP).
- The effective income tax rate was 28.5% for 4Q16 and 31.4% for the full-year of 2016, compared to 33.4% for the full-year of 2015 (32.8% for 4Q15).
- The lower full-year rate reflects an increase in tax advantaged investments as well as the effects of certain tax planning strategies.
Commercial Banking
- Commercial loans totaled $21.4 billion at December 31, 2016, an increase of $214 million, or 4% annualized, from September 30, 2016.
- The mortgage warehouse portfolio decreased $107 million from September 30, 2016.
- Average commercial loans totaled $21.1 billion in 4Q16, a $57 million increase from 3Q16.
- The average mortgage warehouse portfolio decreased $18 million in 4Q16.
- Commercial deposits totaled $10.4 billion at December 31, 2016 compared to $10.3 billion at September 30, 2016.
- The ratio of originated non-performing commercial loans to originated commercial loans was 0.49% at December 31, 2016 compared to 0.53% at September 30, 2016.
- Non-performing commercial assets, excluding acquired non-performing loans, totaled $114.4 million at December 31, 2016 compared to $127.4 million at September 30, 2016.
- For the originated commercial portfolio, the allowance for loan losses as a percentage of loans was 0.95% at December 31, 2016 compared to 0.94% at September 30, 2016.
- The commercial originated allowance for loan losses represented 193% of originated non-performing commercial loans at December 31, 2016 compared to 178% at September 30, 2016.
Retail Banking
- Residential mortgage loans totaled $6.2 billion at December 31, 2016, an increase of $189 million, or 13% annualized, from September 30, 2016.
- Average residential mortgage loans totaled $6.1 billion in 4Q16, an increase of $201 million, or 14% annualized, from 3Q16.
- Home equity loans totaled $2.1 billion at December 31, 2016, a $27 million decrease from September 30, 2016.
- Average home equity loans totaled $2.1 billion in 4Q16, a $21 million decrease from 3Q16.
- Retail deposits totaled $19.5 billion at December 31, 2016 compared to $19.4 billion at September 30, 2016.
- The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 0.45% at December 31, 2016 compared to 0.48% at September 30, 2016.
- The ratio of originated non-performing home equity loans to originated home equity loans was 0.85% at December 31, 2016 compared to 0.80% at September 30, 2016.
Conference Call
On January 19, 2017, 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; (9) the successful integration of acquisitions; and (10) 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.
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People's United Financial, Inc. |
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FINANCIAL HIGHLIGHTS |
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|
Three Months Ended | |||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
|||||||
|
(dollars in millions, except per share data) |
2016 |
2016 |
2016 |
2016 |
2015 |
||||||
|
Earnings Data: |
|||||||||||
|
Net interest income (fully taxable equivalent) |
$ |
255.2 |
$ |
254.2 |
$ |
247.7 |
$ |
247.4 |
$ |
245.3 |
|
|
Net interest income |
246.8 |
245.3 |
240.0 |
240.1 |
238.8 |
||||||
|
Provision for loan losses |
7.7 |
8.4 |
10.0 |
10.5 |
9.7 |
||||||
|
Non-interest income (1) |
84.2 |
90.8 |
85.4 |
82.3 |
93.3 |
||||||
|
Non-interest expense (2) |
217.2 |
221.4 |
212.9 |
217.3 |
217.0 |
||||||
|
Income before income tax expense |
106.1 |
106.3 |
102.5 |
94.6 |
105.4 |
||||||
|
Net income |
75.9 |
73.7 |
68.5 |
62.9 |
70.8 |
||||||
|
Net income available to common shareholders (2) |
74.1 |
73.7 |
68.5 |
62.9 |
70.8 |
||||||
|
Selected Statistical Data: |
|||||||||||
|
Net interest margin (3) |
2.78 |
% |
2.80 |
% |
2.79 |
% |
2.83 |
% |
2.87 |
% | |
|
Return on average assets (2), (3) |
0.75 |
0.73 |
0.70 |
0.65 |
0.75 |
||||||
|
Return on average common equity (3) |
6.1 |
6.1 |
5.7 |
5.3 |
6.0 |
||||||
|
Return on average tangible common equity (2), (3) |
10.7 |
10.7 |
10.1 |
9.4 |
10.7 |
||||||
|
Efficiency ratio (2) |
59.3 |
59.9 |
60.4 |
62.7 |
61.0 |
||||||
|
Common Share Data: |
|||||||||||
|
Basic and diluted earnings per common share (2) |
$ |
0.24 |
$ |
0.24 |
$ |
0.23 |
$ |
0.21 |
$ |
0.23 |
|
|
Dividends paid per share |
0.17 |
0.17 |
0.17 |
0.1675 |
0.1675 |
||||||
|
Dividend payout ratio (2) |
69.8 |
% |
70.1 |
% |
75.4 |
% |
80.6 |
% |
71.5 |
% | |
|
Book value per share (end of period) |
$ |
15.85 |
$ |
15.99 |
$ |
15.91 |
$ |
15.80 |
$ |
15.62 |
|
|
Tangible book value per share (end of period) (2) |
8.92 |
9.18 |
9.07 |
8.94 |
8.73 |
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|
Stock price: |
|||||||||||
|
High |
20.13 |
16.40 |
16.68 |
16.27 |
16.93 |
||||||
|
Low |
15.28 |
14.22 |
13.80 |
13.62 |
15.00 |
||||||
|
Close (end of period) |
19.36 |
15.82 |
14.66 |
15.93 |
16.15 |
||||||
|
Common shares (end of period) (in millions) |
308.97 |
304.02 |
303.55 |
303.27 |
302.86 |
||||||
|
Weighted average diluted common shares (in millions) |
306.23 |
303.24 |
302.48 |
301.86 |
301.38 |
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|
(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. |
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|
(2) See Non-GAAP Financial Measures and Reconciliation to GAAP. |
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|
(3) Annualized. |
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|
People's United Financial, Inc. |
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|
FINANCIAL HIGHLIGHTS |
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|
Twelve Months Ended | |||||
|
December 31, | |||||
|
(dollars in millions, except per share data) |
2016 |
2015 |
|||
|
Earnings Data: |
|||||
|
Net interest income (fully taxable equivalent) |
$ |
1,004.5 |
$ |
957.3 |
|
|
Net interest income |
972.2 |
932.1 |
|||
|
Provision for loan losses |
36.6 |
33.4 |
|||
|
Non-interest income (1) |
342.7 |
352.4 |
|||
|
Non-interest expense (2) |
868.8 |
860.6 |
|||
|
Income before income tax expense |
409.5 |
390.5 |
|||
|
Net income |
281.0 |
260.1 |
|||
|
Net income available to common shareholders (2) |
279.2 |
260.1 |
|||
|
Selected Statistical Data: |
|||||
|
Net interest margin |
2.80 |
% |
2.88 |
% | |
|
Return on average assets (2) |
0.71 |
0.71 |
|||
|
Return on average common equity |
5.8 |
5.5 |
|||
|
Return on average tangible common equity (2) |
10.2 |
10.0 |
|||
|
Efficiency ratio (2) |
60.5 |
61.5 |
|||
|
Common Share Data: |
|||||
|
Basic and diluted earnings per common share (2) |
$ |
0.92 |
$ |
0.86 |
|
|
Dividends paid per share |
0.6775 |
0.6675 |
|||
|
Dividend payout ratio (2) |
73.7 |
% |
77.3 |
% | |
|
Book value per share (end of period) |
$ |
15.85 |
$ |
15.62 |
|
|
Tangible book value per share (end of period) (2) |
8.92 |
8.73 |
|||
|
Stock price: |
|||||
|
High |
20.13 |
16.95 |
|||
|
Low |
13.62 |
13.97 |
|||
|
Close (end of period) |
19.36 |
16.15 |
|||
|
Common shares (end of period) (in millions) |
308.97 |
302.86 |
|||
|
Weighted average diluted common shares (in millions) |
303.99 |
300.41 |
|||
|
(1) Twelve 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. |
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|
(2) See Non-GAAP Financial Measures and Reconciliation to GAAP. |
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|
People's United Financial, Inc. |
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|
FINANCIAL HIGHLIGHTS |
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|
As of and for the Three Months Ended |
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|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
|||||||
|
(dollars in millions) |
2016 |
2016 |
2016 |
2016 |
2015 |
||||||
|
Financial Condition Data: |
|||||||||||
|
Total assets |
$ |
40,610 |
$ |
40,692 |
$ |
40,150 |
$ |
39,264 |
$ |
38,947 |
|
|
Loans |
29,745 |
29,368 |
29,038 |
28,511 |
28,411 |
||||||
|
Securities |
6,738 |
7,046 |
6,785 |
6,732 |
6,449 |
||||||
|
Short-term investments |
182 |
373 |
364 |
251 |
380 |
||||||
|
Allowance for loan losses |
229 |
226 |
220 |
216 |
211 |
||||||
|
Goodwill and other acquisition-related intangible assets |
2,142 |
2,070 |
2,076 |
2,079 |
2,088 |
||||||
|
Deposits |
29,861 |
29,656 |
28,999 |
29,105 |
28,417 |
||||||
|
Borrowings |
4,057 |
4,437 |
4,563 |
3,717 |
4,307 |
||||||
|
Notes and debentures |
1,030 |
1,054 |
1,058 |
1,050 |
1,033 |
||||||
|
Stockholders' equity |
5,142 |
4,862 |
4,830 |
4,791 |
4,732 |
||||||
|
Total risk-weighted assets (1): |
|||||||||||
|
People's United Financial, Inc. |
30,508 |
30,451 |
30,267 |
29,832 |
29,646 |
||||||
|
People's United Bank, N.A. |
30,440 |
30,415 |
30,232 |
29,826 |
29,621 |
||||||
|
Non-performing assets (2) |
167 |
180 |
182 |
189 |
182 |
||||||
|
Net loan charge-offs |
4.7 |
2.5 |
5.1 |
6.0 |
6.2 |
||||||
|
Average Balances: |
|||||||||||
|
Loans |
$ |
29,346 |
$ |
29,107 |
$ |
28,558 |
$ |
28,159 |
$ |
27,853 |
|
|
Securities (3) |
7,074 |
6,873 |
6,699 |
6,498 |
6,133 |
||||||
|
Short-term investments |
308 |
361 |
298 |
348 |
247 |
||||||
|
Total earning assets |
36,728 |
36,341 |
35,555 |
35,005 |
34,233 |
||||||
|
Total assets |
40,623 |
40,304 |
39,422 |
38,773 |
37,955 |
||||||
|
Deposits |
29,773 |
29,437 |
29,079 |
28,721 |
28,481 |
||||||
|
Borrowings |
4,148 |
4,296 |
3,895 |
3,664 |
3,187 |
||||||
|
Notes and debentures |
1,045 |
1,056 |
1,049 |
1,044 |
1,037 |
||||||
|
Total funding liabilities |
34,966 |
34,789 |
34,023 |
33,429 |
32,705 |
||||||
|
Stockholders' equity |
5,039 |
4,841 |
4,795 |
4,761 |
4,736 |
||||||
|
Ratios: |
|||||||||||
|
Net loan charge-offs to average total loans (annualized) |
0.06 |
% |
0.04 |
% |
0.07 |
% |
0.09 |
% |
0.09 |
% | |
|
Non-performing assets to originated loans, |
|||||||||||
|
real estate owned and repossessed assets (2) |
0.57 |
0.63 |
0.64 |
0.68 |
0.66 |
||||||
|
Originated allowance for loan losses to: |
|||||||||||
|
Originated loans (2) |
0.77 |
0.76 |
0.75 |
0.75 |
0.73 |
||||||
|
Originated non-performing loans (2) |
150.6 |
142.0 |
135.3 |
123.3 |
127.3 |
||||||
|
Average stockholders' equity to average total assets |
12.4 |
12.0 |
12.2 |
12.3 |
12.5 |
||||||
|
Stockholders' equity to total assets |
12.7 |
11.9 |
12.0 |
12.2 |
12.2 |
||||||
|
Tangible common equity to tangible assets (4) |
7.2 |
7.2 |
7.2 |
7.3 |
7.2 |
||||||
|
Total risk-based capital (1): |
|||||||||||
|
People's United Financial, Inc. |
12.5 |
11.5 |
11.5 |
11.5 |
11.7 |
||||||
|
People's United Bank, N.A. |
13.4 |
12.8 |
12.8 |
12.9 |
12.6 |
||||||
|
(1) December 31, 2016 amounts and ratios are preliminary. |
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|
(2) Excludes acquired loans. |
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|
(3) Average balances for securities are based on amortized cost. |
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|
(4) See Non-GAAP Financial Measures and Reconciliation to GAAP. |
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|
People's United Financial, Inc. |
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|
CONSOLIDATED STATEMENTS OF CONDITION |
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|
Dec. 31, |
Sept. 30, |
June 30, |
Dec. 31, | |
|
(in millions) |
2016 |
2016 |
2016 |
2015 |
|
Assets |
||||
|
Cash and due from banks |
$ 432.4 |
$ 347.5 |
$ 343.9 |
$ 334.8 |
|
Short-term investments |
181.7 |
372.8 |
363.9 |
380.5 |
|
Total cash and cash equivalents |
614.1 |
720.3 |
707.8 |
715.3 |
|
Securities: |
||||
|
Trading account securities, at fair value |
6.8 |
6.8 |
6.8 |
6.7 |
|
Securities available for sale, at fair value |
4,409.9 |
4,906.5 |
4,711.8 |
4,527.7 |
|
Securities held to maturity, at amortized cost |
2,005.4 |
1,817.5 |
1,749.4 |
1,609.6 |
|
Federal Home Loan Bank and Federal Reserve Bank stock, at cost |
315.8 |
315.5 |
317.4 |
305.4 |
|
Total securities |
6,737.9 |
7,046.3 |
6,785.4 |
6,449.4 |
|
Loans held for sale |
39.3 |
46.5 |
61.4 |
34.5 |
|
Loans: |
||||
|
Commercial real estate |
10,247.3 |
10,001.7 |
10,011.3 |
10,028.8 |
|
Commercial and industrial |
8,125.1 |
8,201.2 |
8,066.1 |
7,748.7 |
|
Equipment financing (1) |
3,032.5 |
2,987.6 |
3,005.9 |
2,973.3 |
|
Total Commercial Portfolio |
21,404.9 |
21,190.5 |
21,083.3 |
20,750.8 |
|
Residential mortgage |
6,216.7 |
6,028.0 |
5,789.0 |
5,457.0 |
|
Home equity and other consumer |
2,123.3 |
2,149.3 |
2,166.0 |
2,203.1 |
|
Total Retail Portfolio |
8,340.0 |
8,177.3 |
7,955.0 |
7,660.1 |
|
Total loans |
29,744.9 |
29,367.8 |
29,038.3 |
28,410.9 |
|
Less allowance for loan losses |
(229.3) |
(226.3) |
(220.4) |
(211.0) |
|
Total loans, net |
29,515.6 |
29,141.5 |
28,817.9 |
28,199.9 |
|
Goodwill and other acquisition-related intangible assets |
2,142.0 |
2,070.3 |
2,076.1 |
2,087.8 |
|
Bank-owned life insurance |
349.1 |
347.8 |
346.8 |
346.5 |
|
Premises and equipment |
244.5 |
245.1 |
249.5 |
257.8 |
|
Other assets |
967.3 |
1,074.3 |
1,105.1 |
855.5 |
|
Total assets |
$ 40,609.8 |
$ 40,692.1 |
$ 40,150.0 |
$ 38,946.7 |
|
Liabilities |
||||
|
Deposits: |
||||
|
Non-interest-bearing |
$ 6,660.8 |
$ 6,521.8 |
$ 6,226.8 |
$ 6,178.6 |
|
Savings |
4,397.7 |
4,391.4 |
4,474.2 |
4,199.9 |
|
Interest-bearing checking and money market |
14,260.1 |
14,055.5 |
13,566.0 |
13,220.8 |
|
Time |
4,542.2 |
4,686.8 |
4,732.1 |
4,818.1 |
|
Total deposits |
29,860.8 |
29,655.5 |
28,999.1 |
28,417.4 |
|
Borrowings: |
||||
|
Federal Home Loan Bank advances |
3,061.1 |
3,261.8 |
3,562.4 |
3,463.8 |
|
Federal funds purchased and other borrowings |
652.4 |
844.0 |
680.0 |
374.0 |
|
Customer repurchase agreements |
343.3 |
330.7 |
320.8 |
469.5 |
|
Total borrowings |
4,056.8 |
4,436.5 |
4,563.2 |
4,307.3 |
|
Notes and debentures |
1,030.1 |
1,053.9 |
1,058.2 |
1,033.1 |
|
Other liabilities |
520.2 |
683.9 |
699.8 |
457.3 |
|
Total liabilities |
35,467.9 |
35,829.8 |
35,320.3 |
34,215.1 |
|
Stockholders' Equity |
||||
|
Preferred stock |
244.1 |
- |
- |
- |
|
Common stock |
4.0 |
4.0 |
3.9 |
3.9 |
|
Additional paid-in capital |
5,446.1 |
5,359.8 |
5,350.4 |
5,337.7 |
|
Retained earnings |
949.3 |
927.3 |
905.8 |
880.8 |
|
Accumulated other comprehensive loss |
(195.0) |
(120.4) |
(120.3) |
(177.2) |
|
Unallocated common stock of Employee Stock Ownership Plan, at cost |
(144.6) |
(146.4) |
(148.1) |
(151.8) |
|
Treasury stock, at cost |
(1,162.0) |
(1,162.0) |
(1,162.0) |
(1,161.8) |
|
Total stockholders' equity |
5,141.9 |
4,862.3 |
4,829.7 |
4,731.6 |
|
Total liabilities and stockholders' equity |
$ 40,609.8 |
$ 40,692.1 |
$ 40,150.0 |
$ 38,946.7 |
|
(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 |
||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, | ||||||
|
(in millions, except per share data) |
2016 |
2016 |
2016 |
2016 |
2015 | |||||
|
Interest and dividend income: |
||||||||||
|
Commercial real estate |
$ 86.8 |
$ 85.7 |
$ 85.3 |
$ 86.8 |
$ 86.1 | |||||
|
Commercial and industrial |
65.0 |
66.9 |
62.8 |
60.3 |
59.6 | |||||
|
Equipment financing (1) |
31.8 |
32.8 |
33.0 |
33.3 |
33.1 | |||||
|
Residential mortgage |
47.0 |
45.7 |
43.8 |
43.9 |
43.0 | |||||
|
Consumer |
18.1 |
18.4 |
18.4 |
18.6 |
18.1 | |||||
|
Total interest on loans |
248.7 |
249.5 |
243.3 |
242.9 |
239.9 | |||||
|
Securities |
36.9 |
34.2 |
34.7 |
34.5 |
33.8 | |||||
|
Loans held for sale |
0.3 |
0.4 |
0.2 |
0.2 |
0.3 | |||||
|
Short-term investments |
0.4 |
0.4 |
0.3 |
0.4 |
0.2 | |||||
|
Total interest and dividend income |
286.3 |
284.5 |
278.5 |
278.0 |
274.2 | |||||
|
Interest expense: |
||||||||||
|
Deposits |
25.1 |
25.2 |
25.4 |
25.2 |
24.6 | |||||
|
Borrowings |
6.4 |
6.1 |
5.3 |
5.0 |
3.3 | |||||
|
Notes and debentures |
8.0 |
7.9 |
7.8 |
7.7 |
7.5 | |||||
|
Total interest expense |
39.5 |
39.2 |
38.5 |
37.9 |
35.4 | |||||
|
Net interest income |
246.8 |
245.3 |
240.0 |
240.1 |
238.8 | |||||
|
Provision for loan losses |
7.7 |
8.4 |
10.0 |
10.5 |
9.7 | |||||
|
Net interest income after provision for loan losses |
239.1 |
236.9 |
230.0 |
229.6 |
229.1 | |||||
|
Non-interest income: |
||||||||||
|
Bank service charges |
24.2 |
25.3 |
24.7 |
23.8 |
25.0 | |||||
|
Investment management fees |
14.2 |
11.6 |
11.4 |
11.1 |
10.8 | |||||
|
Operating lease income |
9.5 |
11.2 |
10.1 |
10.4 |
10.5 | |||||
|
Commercial banking lending fees |
7.2 |
7.1 |
9.2 |
8.1 |
9.2 | |||||
|
Insurance revenue |
6.8 |
9.8 |
7.0 |
9.3 |
7.5 | |||||
|
Cash management fees |
6.2 |
6.5 |
6.3 |
6.0 |
6.1 | |||||
|
Customer interest rate swap income, net |
3.8 |
3.7 |
3.6 |
3.3 |
3.6 | |||||
|
Brokerage commissions |
2.8 |
3.2 |
3.2 |
3.0 |
3.1 | |||||
|
Net gains on sales of residential mortgage loans |
2.6 |
1.9 |
0.9 |
0.9 |
1.3 | |||||
|
Bank-owned life insurance |
1.5 |
1.2 |
2.0 |
1.0 |
1.0 | |||||
|
Net security (losses) gains |
(6.0) |
- |
- |
0.1 |
- | |||||
|
Gain on sale of business, net of expenses |
- |
- |
- |
- |
9.2 | |||||
|
Other non-interest income |
11.4 |
9.3 |
7.0 |
5.3 |
6.0 | |||||
|
Total non-interest income (2) |
84.2 |
90.8 |
85.4 |
82.3 |
93.3 | |||||
|
Non-interest expense: |
||||||||||
|
Compensation and benefits |
114.0 |
116.1 |
111.4 |
114.1 |
112.0 | |||||
|
Occupancy and equipment |
37.8 |
37.7 |
37.4 |
37.5 |
37.0 | |||||
|
Professional and outside services |
16.3 |
17.7 |
16.4 |
17.4 |
17.9 | |||||
|
Regulatory assessments |
10.4 |
9.9 |
9.2 |
8.0 |
7.1 | |||||
|
Operating lease expense |
8.3 |
9.7 |
9.1 |
9.2 |
9.4 | |||||
|
Amortization of other acquisition-related intangible assets |
6.2 |
5.8 |
5.8 |
5.8 |
6.1 | |||||
|
Other non-interest expense |
24.2 |
24.5 |
23.6 |
25.3 |
27.5 | |||||
|
Total non-interest expense (2) |
217.2 |
221.4 |
212.9 |
217.3 |
217.0 | |||||
|
Income before income tax expense |
106.1 |
106.3 |
102.5 |
94.6 |
105.4 | |||||
|
Income tax expense |
30.2 |
32.6 |
34.0 |
31.7 |
34.6 | |||||
|
Net income |
75.9 |
73.7 |
68.5 |
62.9 |
70.8 | |||||
|
Preferred stock dividend |
1.8 |
- |
- |
- |
- | |||||
|
Net income available to common shareholders |
$ 74.1 |
$ 73.7 |
$ 68.5 |
$ 62.9 |
$ 70.8 | |||||
|
Basic and diluted earnings per common share |
$ 0.24 |
$ 0.24 |
$ 0.23 |
$ 0.21 |
$ 0.23 | |||||
|
(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 $1.6 million, $3.1 million and $3.8 million of non-operating expenses for the three | ||||||||||
|
months ended December 31, 2016, September 30, 2016 and December 31, 2015, respectively. See Non-GAAP Financial | ||||||||||
|
Measures and Reconciliation to GAAP. |
||||||||||
|
People's United Financial, Inc. |
|||
|
CONSOLIDATED STATEMENTS OF INCOME |
|||
|
Twelve Months Ended | |||
|
December 31, | |||
|
(in millions, except per share data) |
2016 |
2015 | |
|
Interest and dividend income: |
|||
|
Commercial real estate |
$ 344.6 |
$ 343.5 | |
|
Commercial and industrial |
255.0 |
234.8 | |
|
Equipment financing (1) |
130.9 |
129.6 | |
|
Residential mortgage |
180.4 |
165.4 | |
|
Consumer |
73.5 |
72.3 | |
|
Total interest on loans |
984.4 |
945.6 | |
|
Securities |
140.3 |
121.5 | |
|
Loans held for sale |
1.1 |
1.3 | |
|
Short-term investments |
1.5 |
0.5 | |
|
Total interest and dividend income |
1,127.3 |
1,068.9 | |
|
Interest expense: |
|||
|
Deposits |
100.9 |
95.5 | |
|
Borrowings |
22.8 |
11.5 | |
|
Notes and debentures |
31.4 |
29.8 | |
|
Total interest expense |
155.1 |
136.8 | |
|
Net interest income |
972.2 |
932.1 | |
|
Provision for loan losses |
36.6 |
33.4 | |
|
Net interest income after provision for loan losses |
935.6 |
898.7 | |
|
Non-interest income: |
|||
|
Bank service charges |
98.0 |
100.7 | |
|
Investment management fees |
48.3 |
43.7 | |
|
Operating lease income |
41.2 |
42.3 | |
|
Insurance revenue |
32.9 |
30.7 | |
|
Commercial banking lending fees |
31.6 |
42.6 | |
|
Cash management fees |
25.0 |
24.5 | |
|
Customer interest rate swap income, net |
14.4 |
14.5 | |
|
Brokerage commissions |
12.2 |
12.6 | |
|
Net gains on sales of residential mortgage loans |
6.3 |
5.5 | |
|
Bank-owned life insurance |
5.7 |
4.6 | |
|
Net security losses |
(5.9) |
- | |
|
Gain on sale of business, net of expenses |
- |
9.2 | |
|
Net gains on sales of acquired loans |
- |
1.7 | |
|
Other non-interest income |
33.0 |
19.8 | |
|
Total non-interest income (2) |
342.7 |
352.4 | |
|
Non-interest expense: |
|||
|
Compensation and benefits |
455.6 |
449.5 | |
|
Occupancy and equipment |
150.4 |
149.5 | |
|
Professional and outside services |
67.8 |
68.0 | |
|
Regulatory assessments |
37.5 |
35.1 | |
|
Operating lease expense |
36.3 |
37.1 | |
|
Amortization of other acquisition-related intangible assets |
23.6 |
23.9 | |
|
Other non-interest expense |
97.6 |
97.5 | |
|
Total non-interest expense (2) |
868.8 |
860.6 | |
|
Income before income tax expense |
409.5 |
390.5 | |
|
Income tax expense |
128.5 |
130.4 | |
|
Net income |
281.0 |
260.1 | |
|
Preferred stock dividend |
1.8 |
- | |
|
Net income available to common shareholders |
$ 279.2 |
$ 260.1 | |
|
Basic and diluted earnings per common share |
$ 0.92 |
$ 0.86 | |
|
(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 twelve months | |||
|
ended December 31, 2015. Total non-interest expense includes $4.7 million and $12.9 million of | |||
|
non-operating expenses for the twelve months ended December 31, 2016 and 2015, respectively. | |||
|
See Non-GAAP Financial Measures and Reconciliation to GAAP. |
|||
|
People's United Financial, Inc. |
|||||||||||
|
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1) |
|||||||||||
|
December 31, 2016 |
September 30, 2016 |
December 31, 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 |
$ 307.9 |
$ 0.4 |
0.44% |
$ 361.0 |
$ 0.4 |
0.47% |
$ 247.1 |
$ 0.2 |
0.21% | ||
|
Securities (2) |
7,073.5 |
42.1 |
2.38 |
6,872.5 |
38.9 |
2.26 |
6,133.1 |
37.7 |
2.46 | ||
|
Loans: |
|||||||||||
|
Commercial real estate |
10,079.4 |
86.8 |
3.44 |
9,978.8 |
85.7 |
3.44 |
9,911.1 |
86.1 |
3.48 | ||
|
Commercial and industrial |
8,023.3 |
68.2 |
3.40 |
8,053.2 |
71.1 |
3.53 |
7,426.5 |
62.2 |
3.35 | ||
|
Equipment financing |
2,971.4 |
31.8 |
4.29 |
2,984.7 |
32.8 |
4.39 |
2,874.3 |
33.1 |
4.61 | ||
|
Residential mortgage |
6,136.2 |
47.3 |
3.09 |
5,935.3 |
46.1 |
3.11 |
5,440.6 |
43.3 |
3.17 | ||
|
Home equity and other consumer |
2,135.9 |
18.1 |
3.39 |
2,155.4 |
18.4 |
3.41 |
2,200.7 |
18.1 |
3.31 | ||
|
Total loans |
29,346.2 |
252.2 |
3.44 |
29,107.4 |
254.1 |
3.49 |
27,853.2 |
242.8 |
3.49 | ||
|
Total earning assets |
36,727.6 |
$294.7 |
3.21% |
36,340.9 |
$293.4 |
3.23% |
34,233.4 |
$280.7 |
3.28% | ||
|
Other assets |
3,895.4 |
3,963.1 |
3,721.8 |
||||||||
|
Total assets |
$ 40,623.0 |
$ 40,304.0 |
$ 37,955.2 |
||||||||
|
Liabilities and stockholders' equity: |
|||||||||||
|
Deposits: |
|||||||||||
|
Non-interest-bearing |
$ 6,524.5 |
$ - |
- % |
$ 6,325.3 |
$ - |
- % |
$ 6,049.3 |
$ - |
- % | ||
|
Savings, interest-bearing checking |
|||||||||||
|
and money market |
18,614.5 |
14.1 |
0.30 |
18,356.6 |
13.3 |
0.29 |
17,453.7 |
11.6 |
0.27 | ||
|
Time |
4,634.4 |
11.0 |
0.95 |
4,755.1 |
11.9 |
1.00 |
4,977.6 |
13.0 |
1.05 | ||
|
Total deposits |
29,773.4 |
25.1 |
0.34 |
29,437.0 |
25.2 |
0.34 |
28,480.6 |
24.6 |
0.35 | ||
|
Borrowings: |
|||||||||||
|
Federal Home Loan Bank advances |
3,028.8 |
5.1 |
0.67 |
3,306.7 |
5.1 |
0.62 |
2,353.8 |
2.8 |
0.47 | ||
|
Federal funds purchased and |
|||||||||||
|
other borrowings |
790.3 |
1.1 |
0.54 |
674.1 |
0.9 |
0.51 |
398.5 |
0.3 |
0.23 | ||
|
Customer repurchase agreements |
328.8 |
0.2 |
0.20 |
314.8 |
0.1 |
0.19 |
434.9 |
0.2 |
0.20 | ||
|
Total borrowings |
4,147.9 |
6.4 |
0.61 |
4,295.6 |
6.1 |
0.57 |
3,187.2 |
3.3 |
0.40 | ||
|
Notes and debentures |
1,045.0 |
8.0 |
3.08 |
1,056.4 |
7.9 |
2.97 |
1,037.6 |
7.5 |
2.90 | ||
|
Total funding liabilities |
34,966.3 |
$ 39.5 |
0.45% |
34,789.0 |
$ 39.2 |
0.45% |
32,705.4 |
$ 35.4 |
0.43% | ||
|
Other liabilities |
617.4 |
674.5 |
513.8 |
||||||||
|
Total liabilities |
35,583.7 |
35,463.5 |
33,219.2 |
||||||||
|
Stockholders' equity |
5,039.3 |
4,840.5 |
4,736.0 |
||||||||
|
Total liabilities and |
|||||||||||
|
stockholders' equity |
$ 40,623.0 |
$ 40,304.0 |
$ 37,955.2 |
||||||||
|
Net interest income/spread (3) |
$255.2 |
2.76% |
$254.2 |
2.78% |
$245.3 |
2.85% | |||||
|
Net interest margin |
2.78% |
2.80% |
2.87% | ||||||||
|
(1) Average yields earned and rates paid are annualized. |
|||||||||||
|
(2) Average balances and yields for securities are based on amortized cost. |
|||||||||||
|
(3) The fully taxable equivalent adjustment was $8.4 million, $8.9 million and $6.5 million for the three months ended December 31, 2016, | |||||||||||
|
September 30, 2016 and December 31, 2015, respectively. |
|||||||||||
|
People's United Financial, Inc. |
|||||||
|
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS |
|||||||
|
December 31, 2016 |
December 31, 2015 | ||||||
|
Twelve months ended |
Average |
Yield/ |
Average |
Yield/ | |||
|
(dollars in millions) |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate | |
|
Assets: |
|||||||
|
Short-term investments |
$ 328.7 |
$ 1.5 |
0.45% |
$ 247.8 |
$ 0.5 |
0.20% | |
|
Securities (1) |
6,786.7 |
158.8 |
2.34 |
5,731.5 |
135.7 |
2.37 | |
|
Loans: |
|||||||
|
Commercial real estate |
10,013.3 |
344.6 |
3.44 |
9,643.9 |
343.5 |
3.56 | |
|
Commercial and industrial |
7,821.8 |
268.8 |
3.44 |
7,357.8 |
245.8 |
3.34 | |
|
Equipment financing |
2,972.3 |
130.9 |
4.40 |
2,831.7 |
129.6 |
4.58 | |
|
Residential mortgage |
5,824.1 |
181.5 |
3.12 |
5,222.4 |
166.7 |
3.19 | |
|
Home equity and other consumer |
2,163.8 |
73.5 |
3.40 |
2,193.1 |
72.3 |
3.30 | |
|
Total loans |
28,795.3 |
999.3 |
3.47 |
27,248.9 |
957.9 |
3.52 | |
|
Total earning assets |
35,910.7 |
$ 1,159.6 |
3.23% |
33,228.2 |
$ 1,094.1 |
3.29% | |
|
Other assets |
3,873.6 |
3,698.7 |
|||||
|
Total assets |
$ 39,784.3 |
$ 36,926.9 |
|||||
|
Liabilities and stockholders' equity: |
|||||||
|
Deposits: |
|||||||
|
Non-interest-bearing |
$ 6,236.1 |
$ - |
- % |
$ 5,801.9 |
$ - |
- % | |
|
Savings, interest-bearing checking |
|||||||
|
and money market |
18,258.2 |
53.0 |
0.29 |
16,489.3 |
43.5 |
0.26 | |
|
Time |
4,760.4 |
47.9 |
1.01 |
5,241.4 |
52.0 |
0.99 | |
|
Total deposits |
29,254.7 |
100.9 |
0.34 |
27,532.6 |
95.5 |
0.35 | |
|
Borrowings: |
|||||||
|
Federal Home Loan Bank advances |
3,093.7 |
19.2 |
0.62 |
2,306.6 |
9.8 |
0.42 | |
|
Federal funds purchased and other borrowings |
570.9 |
2.9 |
0.50 |
464.2 |
0.9 |
0.19 | |
|
Customer repurchase agreements |
337.2 |
0.7 |
0.19 |
411.0 |
0.8 |
0.19 | |
|
Total borrowings |
4,001.8 |
22.8 |
0.57 |
3,181.8 |
11.5 |
0.34 | |
|
Notes and debentures |
1,048.5 |
31.4 |
3.00 |
1,033.4 |
29.8 |
2.88 | |
|
Total funding liabilities |
34,305.0 |
$ 155.1 |
0.45% |
31,747.8 |
$ 136.8 |
0.43% | |
|
Other liabilities |
619.9 |
481.8 |
|||||
|
Total liabilities |
34,924.9 |
32,229.6 |
|||||
|
Stockholders' equity |
4,859.4 |
4,697.3 |
|||||
|
Total liabilities and |
|||||||
|
stockholders' equity |
$ 39,784.3 |
$ 36,926.9 |
|||||
|
Net interest income/spread (2) |
$ 1,004.5 |
2.78% |
$ 957.3 |
2.86% | |||
|
Net interest margin |
2.80% |
2.88% | |||||
|
(1) Average balances and yields for securities are based on amortized cost. |
|||||||
|
(2) The fully taxable equivalent adjustment was $32.3 million and $25.2 million for the years ended |
|||||||
|
December 31, 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 |
|||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
|||||||
|
(dollars in millions) |
2016 |
2016 |
2016 |
2016 |
2015 |
||||||
|
Originated non-performing loans: |
|||||||||||
|
Commercial: |
|||||||||||
|
Commercial real estate |
$ |
22.3 |
$ |
23.4 |
$ |
35.4 |
$ |
35.9 |
$ |
30.2 |
|
|
Commercial and industrial |
41.5 |
40.0 |
34.7 |
41.5 |
44.9 |
||||||
|
Equipment financing |
39.4 |
46.0 |
40.0 |
41.1 |
27.5 |
||||||
|
Total |
103.2 |
109.4 |
110.1 |
118.5 |
102.6 |
||||||
|
Retail: |
|||||||||||
|
Residential mortgage |
27.4 |
28.2 |
29.9 |
31.1 |
37.2 |
||||||
|
Home equity |
17.4 |
16.5 |
17.4 |
18.9 |
19.5 |
||||||
|
Other consumer |
- |
- |
- |
- |
0.1 |
||||||
|
Total |
44.8 |
44.7 |
47.3 |
50.0 |
56.8 |
||||||
|
Total originated non-performing loans (1) |
148.0 |
154.1 |
157.4 |
168.5 |
159.4 |
||||||
|
REO: |
|||||||||||
|
Commercial |
4.0 |
11.2 |
3.3 |
5.4 |
5.5 |
||||||
|
Residential |
8.1 |
7.9 |
9.7 |
8.2 |
7.1 |
||||||
|
Total REO |
12.1 |
19.1 |
13.0 |
13.6 |
12.6 |
||||||
|
Repossessed assets |
7.2 |
6.9 |
11.6 |
7.3 |
9.5 |
||||||
|
Total non-performing assets |
$ |
167.3 |
$ |
180.1 |
$ |
182.0 |
$ |
189.4 |
$ |
181.5 |
|
|
Acquired non-performing loans (contractual amount) (2) |
$ |
24.7 |
$ |
24.6 |
$ |
25.5 |
$ |
27.4 |
$ |
30.0 |
|
|
Originated non-performing loans as a percentage |
|||||||||||
|
of originated loans |
0.51 |
% |
0.54 |
% |
0.56 |
% |
0.61 |
% |
0.58 |
% | |
|
Non-performing assets as a percentage of: |
|||||||||||
|
Originated loans, REO and repossessed assets |
0.57 |
0.63 |
0.64 |
0.68 |
0.66 |
||||||
|
Tangible stockholders' equity and originated |
|||||||||||
|
allowance for loan losses |
5.19 |
5.98 |
6.14 |
6.49 |
6.38 |
||||||
|
(1) Reported net of government guarantees totaling $13.1 million at December 31, 2016, $13.0 million at September 30, 2016, | |||||||||||
|
$15.8 million at June 30, 2016, $16.2 million at March 31, 2016 and $16.9 million at December 31, 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 | |||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
|||||||
|
(dollars in millions) |
2016 |
2016 |
2016 |
2016 |
2015 |
||||||
|
Allowance for loan losses on originated loans: |
|||||||||||
|
Balance at beginning of period |
$ |
219.0 |
$ |
213.0 |
$ |
207.6 |
$ |
202.9 |
$ |
198.1 |
|
|
Charge-offs |
(4.7) |
(3.8) |
(6.1) |
(7.4) |
(7.8) |
||||||
|
Recoveries |
1.0 |
1.4 |
1.0 |
1.7 |
1.6 |
||||||
|
Net loan charge-offs |
(3.7) |
(2.4) |
(5.1) |
(5.7) |
(6.2) |
||||||
|
Provision for loan losses |
7.7 |
8.4 |
10.5 |
10.4 |
11.0 |
||||||
|
Balance at end of period |
223.0 |
219.0 |
213.0 |
207.6 |
202.9 |
||||||
|
Allowance for loan losses on acquired loans: |
|||||||||||
|
Balance at beginning of period |
7.3 |
7.4 |
7.9 |
8.1 |
9.4 |
||||||
|
Charge-offs |
(1.0) |
(0.1) |
- |
(0.3) |
- |
||||||
|
Provision for loan losses |
- |
- |
(0.5) |
0.1 |
(1.3) |
||||||
|
Balance at end of period |
6.3 |
7.3 |
7.4 |
7.9 |
8.1 |
||||||
|
Total allowance for loan losses |
$ |
229.3 |
$ |
226.3 |
$ |
220.4 |
$ |
215.5 |
$ |
211.0 |
|
|
Commercial originated allowance for loan loss |
|||||||||||
|
as a percentage of originated commercial loans |
0.95 |
% |
0.94 |
% |
0.92 |
% |
0.92 |
% |
0.90 |
% | |
|
Retail originated allowance for loan losses |
|||||||||||
|
as a percentage of originated retail loans |
0.30 |
0.30 |
0.30 |
0.30 |
0.28 |
||||||
|
Total originated allowance for loan losses |
|||||||||||
|
as a percentage of: |
|||||||||||
|
Originated loans |
0.77 |
0.76 |
0.75 |
0.75 |
0.73 |
||||||
|
Originated non-performing loans |
150.6 |
142.0 |
135.3 |
123.3 |
127.3 |
||||||
|
NET LOAN CHARGE-OFFS (RECOVERIES) |
|||||||||||
|
Three Months Ended | |||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
|||||||
|
(dollars in millions) |
2016 |
2016 |
2016 |
2016 |
2015 |
||||||
|
Commercial: |
|||||||||||
|
Commercial real estate |
$ |
0.9 |
$ |
0.2 |
$ |
(0.1) |
$ |
0.7 |
$ |
(0.1) |
|
|
Commercial and industrial |
1.1 |
0.4 |
1.1 |
2.2 |
3.5 |
||||||
|
Equipment financing |
1.3 |
1.3 |
2.1 |
1.6 |
1.4 |
||||||
|
Total |
3.3 |
1.9 |
3.1 |
4.5 |
4.8 |
||||||
|
Retail: |
|||||||||||
|
Residential mortgage |
- |
0.4 |
0.7 |
- |
0.1 |
||||||
|
Home equity |
1.3 |
0.1 |
1.2 |
1.4 |
1.1 |
||||||
|
Other consumer |
0.1 |
0.1 |
0.1 |
0.1 |
0.2 |
||||||
|
Total |
1.4 |
0.6 |
2.0 |
1.5 |
1.4 |
||||||
|
Total net loan charge-offs |
$ |
4.7 |
$ |
2.5 |
$ |
5.1 |
$ |
6.0 |
$ |
6.2 |
|
|
Net loan charge-offs to |
|||||||||||
|
average total loans (annualized) |
0.06 |
% |
0.04 |
% |
0.07 |
% |
0.09 |
% |
0.09 |
% | |
|
People's United Financial, Inc. 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 common 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 common equity ratio and tangible book value per share are used to analyze the relative strength of People's United's capital position.
The tangible common equity ratio is the ratio of (i) tangible common equity (total stockholders' equity less preferred stock, 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 common equity by common shares (total common shares issued, less common shares classified as treasury shares and unallocated Employee Stock Ownership Plan ("ESOP") common shares). |
|
People's United Financial, Inc. |
||||||||||||||
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued |
||||||||||||||
|
EFFICIENCY RATIO AND OPERATING NON-INTEREST EXPENSE |
||||||||||||||
|
Three Months Ended |
Twelve Months Ended | |||||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, | ||||||||
|
(dollars in millions) |
2016 |
2016 |
2016 |
2016 |
2015 |
2016 |
2015 | |||||||
|
Total non-interest expense |
$ 217.2 |
$ 221.4 |
$ 212.9 |
$ 217.3 |
$ 217.0 |
$ 868.8 |
$ 860.6 | |||||||
|
Adjustments to arrive at operating |
||||||||||||||
|
non-interest expense: |
||||||||||||||
|
Merger-related expenses |
(0.9) |
(3.1) |
- |
- |
- |
(4.0) |
- | |||||||
|
Acquisition integration and other costs |
(0.7) |
- |
- |
- |
- |
(0.7) |
- | |||||||
|
Writedowns of banking house assets |
- |
- |
- |
- |
(2.5) |
- |
(10.5) | |||||||
|
Severance-related costs |
- |
- |
- |
- |
(1.3) |
- |
(2.4) | |||||||
|
Total |
(1.6) |
(3.1) |
n/a |
n/a |
(3.8) |
(4.7) |
(12.9) | |||||||
|
Operating non-interest expense |
215.6 |
218.3 |
n/a |
n/a |
213.2 |
864.1 |
847.7 | |||||||
|
Operating lease expense |
(8.3) |
(9.7) |
(9.1) |
(9.2) |
(9.4) |
(36.3) |
(37.1) | |||||||
|
Amortization of other acquisition-related |
||||||||||||||
|
intangible assets |
(6.2) |
(5.8) |
(5.8) |
(5.8) |
(6.1) |
(23.6) |
(23.9) | |||||||
|
Other (1) |
(0.6) |
(1.8) |
(1.8) |
(1.5) |
(2.2) |
(5.7) |
(7.8) | |||||||
|
Total non-interest expense for |
||||||||||||||
|
efficiency ratio |
$ 200.5 |
$ 201.0 |
$ 196.2 |
$ 200.8 |
$ 195.5 |
$ 798.5 |
$ 778.9 | |||||||
|
Net interest income (FTE basis) |
$ 255.2 |
$ 254.2 |
$ 247.7 |
$ 247.4 |
$ 245.3 |
$ 1,004.5 |
$ 957.3 | |||||||
|
Total non-interest income |
84.2 |
90.8 |
85.4 |
82.3 |
93.3 |
342.7 |
352.4 | |||||||
|
Total revenues |
339.4 |
345.0 |
333.1 |
329.7 |
338.6 |
1,347.2 |
1,309.7 | |||||||
|
Adjustments: |
||||||||||||||
|
Operating lease expense |
(8.3) |
(9.7) |
(9.1) |
(9.2) |
(9.4) |
(36.3) |
(37.1) | |||||||
|
BOLI FTE adjustment |
0.7 |
0.6 |
1.0 |
0.5 |
0.5 |
2.8 |
2.4 | |||||||
|
Net security losses (gains) |
6.0 |
- |
- |
(0.1) |
- |
5.9 |
- | |||||||
|
Gain on sale of business, net of expenses |
- |
- |
- |
- |
(9.2) |
- |
(9.2) | |||||||
|
Other (2) |
0.2 |
(0.3) |
- |
(0.7) |
- |
(0.8) |
(0.1) | |||||||
|
Total revenues for efficiency ratio |
$ 338.0 |
$ 335.6 |
$ 325.0 |
$ 320.2 |
$ 320.5 |
$ 1,318.8 |
$ 1,265.7 | |||||||
|
Efficiency ratio |
59.3% |
59.9% |
60.4% |
62.7% |
61.0% |
60.5% |
61.5% | |||||||
|
n/a For the three months ended June 30, 2016 and March 31, 2016, no expenses were considered to be non-operating expenses. | ||||||||||||||
|
Accordingly, operating metrics were not applicable. |
||||||||||||||
|
(1) Items classified as "other" and deducted from non-interest expense for purposes of calculating the efficiency ratio include, | ||||||||||||||
|
as applicable, certain franchise taxes, real estate owned expenses, contract termination costs and non-recurring expenses. | ||||||||||||||
|
(2) Items classified as "other" and added to (deducted from) total revenues for purposes of calculating the efficiency ratio include, | ||||||||||||||
|
as applicable, asset write-offs and gains associated with the sale of branch locations. |
||||||||||||||
|
People's United Financial, Inc. |
||||||||||||||
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued |
||||||||||||||
|
OPERATING EARNINGS |
||||||||||||||
|
Three Months Ended |
Twelve Months Ended | |||||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, | ||||||||
|
(dollars in millions, except per share data) |
2016 |
2016 |
2016 |
2016 |
2015 |
2016 |
2015 | |||||||
|
Net income available to common shareholders |
$ 74.1 |
$ 73.7 |
$ 68.5 |
$ 62.9 |
$ 70.8 |
$ 279.2 |
$ 260.1 | |||||||
|
Adjustments to arrive at operating earnings: |
||||||||||||||
|
Merger-related expenses |
0.9 |
3.1 |
- |
- |
- |
4.0 |
- | |||||||
|
Acquisition integration and other costs |
0.7 |
- |
- |
- |
- |
0.7 |
- | |||||||
|
Writedowns of banking house assets |
- |
- |
- |
- |
2.5 |
- |
10.5 | |||||||
|
Severance-related costs |
- |
- |
- |
- |
1.3 |
- |
2.4 | |||||||
|
Gain on sale of business, net of expenses |
- |
- |
- |
- |
(9.2) |
- |
(9.2) | |||||||
|
Total pre-tax adjustments |
1.6 |
3.1 |
n/a |
n/a |
(5.4) |
4.7 |
3.7 | |||||||
|
Tax effect |
(0.6) |
(1.0) |
n/a |
n/a |
1.8 |
(1.6) |
(1.3) | |||||||
|
Total adjustments, net of tax |
1.0 |
2.1 |
n/a |
n/a |
(3.6) |
3.1 |
2.4 | |||||||
|
Operating earnings |
$ 75.1 |
$ 75.8 |
n/a |
n/a |
$ 67.2 |
$ 282.3 |
$ 262.5 | |||||||
|
Earnings per common share, as reported |
$ 0.24 |
$ 0.24 |
$ 0.23 |
$ 0.21 |
$ 0.23 |
$ 0.92 |
$ 0.86 | |||||||
|
Adjustments to arrive at operating |
||||||||||||||
|
earnings per common share: |
||||||||||||||
|
Merger-related expenses |
- |
0.01 |
- |
- |
- |
0.01 |
- | |||||||
|
Acquisition integration and other costs |
- |
- |
- |
- |
- |
- |
- | |||||||
|
Writedowns of banking house assets |
- |
- |
- |
- |
0.01 |
- |
0.03 | |||||||
|
Severance-related costs |
- |
- |
- |
- |
- |
- |
- | |||||||
|
Gain on sale of business, net of expenses |
- |
- |
- |
- |
(0.02) |
- |
(0.02) | |||||||
|
Total adjustments per share |
- |
0.01 |
n/a |
n/a |
(0.01) |
0.01 |
0.01 | |||||||
|
Operating earnings per common share |
$ 0.24 |
$ 0.25 |
n/a |
n/a |
$ 0.22 |
$ 0.93 |
$ 0.87 | |||||||
|
Average total assets |
$40,623 |
$40,304 |
$39,422 |
$38,773 |
$37,955 |
$39,784 |
$36,894 | |||||||
|
Operating return on |
||||||||||||||
|
average assets (annualized) |
0.74% |
0.75% |
n/a |
n/a |
0.71% |
0.71% |
0.71% | |||||||
|
OPERATING RETURN ON AVERAGE TANGIBLE COMMON EQUITY |
||||||||||||||
|
Three Months Ended |
Twelve Months Ended | |||||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, | ||||||||
|
(dollars in millions) |
2016 |
2016 |
2016 |
2016 |
2015 |
2016 |
2015 | |||||||
|
Operating earnings |
$ 75.1 |
$ 75.8 |
n/a |
n/a |
$ 67.2 |
$ 282.3 |
$ 262.5 | |||||||
|
Average stockholders' equity |
$ 5,039 |
$ 4,841 |
$ 4,795 |
$ 4,761 |
$ 4,736 |
$ 4,859 |
$ 4,697 | |||||||
|
Less: Average preferred stock |
165 |
- |
- |
- |
- |
41 |
- | |||||||
|
Average common equity |
4,874 |
4,841 |
4,795 |
4,761 |
4,736 |
4,818 |
4,697 | |||||||
|
Less: Average goodwill and average other |
||||||||||||||
|
acquisition-related intangible assets |
2,094 |
2,073 |
2,079 |
2,085 |
2,092 |
2,083 |
2,094 | |||||||
|
Average tangible common equity |
$ 2,780 |
$ 2,768 |
$ 2,716 |
$ 2,676 |
$ 2,644 |
$ 2,735 |
$ 2,603 | |||||||
|
Operating return on average tangible |
||||||||||||||
|
common equity (annualized) |
10.8% |
11.0% |
n/a |
n/a |
10.2% |
10.3% |
10.1% | |||||||
|
OPERATING DIVIDEND PAYOUT RATIO |
||||||||||||||
|
Three Months Ended |
Twelve Months Ended | |||||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, | ||||||||
|
(dollars in millions) |
2016 |
2016 |
2016 |
2016 |
2015 |
2016 |
2015 | |||||||
|
Dividends paid |
$ 51.7 |
$ 51.7 |
$ 51.7 |
$ 50.6 |
$ 50.6 |
$ 205.7 |
$ 201.2 | |||||||
|
Operating earnings |
$ 75.1 |
$ 75.8 |
n/a |
n/a |
$ 67.2 |
$ 282.3 |
$ 262.5 | |||||||
|
Operating dividend payout ratio |
68.8% |
68.2% |
n/a |
n/a |
75.3% |
72.9% |
76.6% | |||||||
|
n/a For the three months ended June 30, 2016 and March 31, 2016, no expenses were considered to be non-operating expenses. | ||||||||||||||
|
Accordingly, operating metrics were not applicable. |
||||||||||||||
|
People's United Financial, Inc. |
||||||||||
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued | ||||||||||
|
TANGIBLE COMMON EQUITY RATIO |
||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, | ||||||
|
(dollars in millions) |
2016 |
2016 |
2016 |
2016 |
2015 | |||||
|
Total stockholders' equity |
$ 5,142 |
$ 4,862 |
$ 4,830 |
$ 4,791 |
$ 4,732 | |||||
|
Less: Preferred stock |
244 |
- |
- |
- |
- | |||||
|
Common equity |
4,898 |
4,862 |
4,830 |
4,791 |
4,732 | |||||
|
Less: Goodwill and other |
||||||||||
|
acquisition-related intangible assets |
2,142 |
2,070 |
2,076 |
2,079 |
2,088 | |||||
|
Tangible common equity |
$ 2,756 |
$ 2,792 |
$ 2,754 |
$ 2,712 |
$ 2,644 | |||||
|
Total assets |
$40,610 |
$40,692 |
$40,150 |
$39,264 |
$38,947 | |||||
|
Less: Goodwill and other |
||||||||||
|
acquisition-related intangible assets |
2,142 |
2,070 |
2,076 |
2,079 |
2,088 | |||||
|
Tangible assets |
$38,468 |
$38,622 |
$38,074 |
$37,185 |
$36,859 | |||||
|
Tangible common equity ratio |
7.2% |
7.2% |
7.2% |
7.3% |
7.2% | |||||
|
TANGIBLE BOOK VALUE PER SHARE |
||||||||||
|
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, | ||||||
|
(in millions, except per share data) |
2016 |
2016 |
2016 |
2016 |
2015 | |||||
|
Tangible common equity |
$ 2,756 |
$ 2,792 |
$ 2,754 |
$ 2,712 |
$ 2,644 | |||||
|
Common shares issued |
405.00 |
400.13 |
399.74 |
399.54 |
399.24 | |||||
|
Less: Shares classified as treasury shares |
89.06 |
89.05 |
89.05 |
89.04 |
89.06 | |||||
|
Unallocated ESOP shares |
6.97 |
7.06 |
7.14 |
7.23 |
7.32 | |||||
|
Common shares |
308.97 |
304.02 |
303.55 |
303.27 |
302.86 | |||||
|
Tangible book value per share |
$ 8.92 |
$ 9.18 |
$ 9.07 |
$ 8.94 |
$ 8.73 | |||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-fourth-quarter-net-income-of-759-million-or-024-per-common-share-300393843.html
SOURCE People's United Bank