Submitted by tim
on
People's United Financial, Inc(NASDAQ: PBCT) hasreported net income of$59.2 million, or$0.20per share, for the first quarter of 2015, compared to$53.1 million, or$0.18per share, for the first quarter of 2014, and$64.7 million, or$0.22per share, for the fourth quarter of 2014.Operating earnings were$63.2 million, or$0.21per share, for the first quarter of 2015, compared to$56.5 million, or$0.19per share, for the first quarter of 2014, and$65.1 million, or$0.22per share, for the fourth quarter of 2014.
The Company's Board of Directors voted to increase the common stock dividend to an annual rate of$0.67per share.Based on the closing stock price onApril 15, 2015, the dividend yield on People's United Financial common stock is4.4 percent. The quarterly dividend of$0.1675per share is payableMay 15, 2015to shareholders of record onMay 1, 2015.
"Our performance this quarter is an encouraging start to the year, especially given the persistent low interest rate environment as well as the severe winter weather across our markets," saidJack Barnes, President and Chief Executive Officer. "We are pleased our continued focus on improving profitability led to a 12 percent increase in operating earnings from a year ago. While the first quarter is typically a seasonally slower period, we achieved solid annualized loan growth of five percent and the success of our deposit gathering initiatives drove annualized organic deposit growth of over 17 percent."
Barnes continued, "Additionally, as previously reported we received a national banking association charter during the quarter. This charter is best aligned to our commercial banking business model."
Barnes concluded, "Finally, we are pleased to announce our 22ndconsecutive annual dividend increase which reflects our continued commitment to delivering value for shareholders through a consistent return of capital."
"The first quarter results reflect our continued focus on improving operating leverage through revenue growth and effective expense management," statedDavid Rosato, Senior Executive Vice President and Chief Financial Officer. "Revenues grew three percent from the prior year quarter mostly due to higher non-interest income, while operating expenses remained flat. The net interest margin decline from the fourth quarter was in line with expectations and primarily resulted from the impact of two fewer calendar days and continued strong loan originations at rates lower than the existing portfolio."
Rosato concluded, "We are comfortable with our capital structure and balance sheet strength. Asset quality was once again exceptional as net charge-offs improved from an already low level. Capital ratios continue to be strong, especially in light of the Company's low risk business model."
AtMarch 31, 2015, People's United Financial's common equity tier 1 capital and total risk-based capital ratios were10.0 percent and12.0 percent, respectively, and the tangible equity ratio stood at 7.5 percent. People's United Bank N.A.'s common equity tier 1 capital and total risk-based capital ratios were 10.6 percent and13.0 percent, respectively, atMarch 31, 2015.
Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.11 percent in the first quarter of 2015, an improvement from 0.13 percent in the fourth quarter of 2014 and 0.12 percent in the first quarter of 2014. For the originated loan portfolio, non-performing loans equaled 0.68 percent of loans atMarch 31, 2015, compared to 0.77 percent atDecember 31, 2014and 0.84 percent atMarch 31, 2014.
Operating return on average assets of 0.71 percent for the first quarter of 2015 declined from 0.75 percent in the fourth quarter of 2014, but improved from 0.69 percent in the first quarter of 2014. Operating return on average tangible stockholders' equity of 9.9 percent in the first quarter of 2015 declined from 10.1 percent in the fourth quarter of 2014, but improved from 9.3 percent in the first quarter of 2014.
People's United Financial, a diversified financial services company with over$36 billionin assets, provides commercial and retail banking, as well as wealth management services through a network of over 400 branches inConnecticut,New York,Massachusetts,Vermont,New Hampshireand Maine. Through its subsidiaries, People's United Financial provides equipment financing, brokerage and insurance services. Assets managed and administered, which are not reported as assets of People's United Financial, totaled$15.7 billionatMarch 31, 2015compared to$16.4 billionatDecember 31, 2014.
1Q 2015 Financial Highlights
Summary
- Net income was$59.2 million, or$0.20per share.
- Operating earnings were$63.2 million, or$0.21per share.
- Net interest income totaled$228.1 millionin both 1Q15 and 4Q14.
- Interest income on acquired loans decreased$1.7 millionto$15.3 million.
- Net interest margin decreased nine basis points from 4Q14 to 2.91% reflecting:
- Two fewer calendar days in 1Q15 (decrease of five basis points).
- New loan volume at rates lower than the existing portfolio (decrease of two basis points).
- Increase in average investment and deposit balances (decrease of two basis points).
- Provision for loan losses totaled$9.8 million.
- Net loan charge-offs totaled$7.2 million, of which$3.2 millionrelated to loans with previously-established specific reserves.
- Net loan charge-off ratio of 0.11% in 1Q15.
- Reflects a$6.2 millionincrease in the originated allowance for loan losses due to loan growth and a$0.4 millionallowance reversal related to acquired loans.
- Non-interest income was$89.0 millionin 1Q15 compared to$86.8 millionin 4Q14.
- Commercial banking lending fees increased$3.7 million.
- Net gains on sales of acquired loans increased$2.2 million
- Customer interest rate swap income increased$2.1 million.
- Insurance revenue increased$1.0 million, primarily reflecting the seasonal nature of insurance renewals.
- Bank service charges decreased$1.9 million.
- Net security gains decreased$2.7 million.
- Assets under administration and those under full discretionary management, neither of which are reported as assets of People's United Financial, totaled$10.0 billionand$5.7 billion, respectively, atMarch 31, 2015, compared to$10.8 billionand$5.6 billion, respectively, atDecember 31, 2014.
- Non-interest expense totaled$217.6 millionin 1Q15 compared to$207.7 millionin 4Q14.
- Operating non-interest expense was$211.6 millionin 1Q15 compared to$207.1 millionin 4Q14.
- Compensation and benefits increased$6.6 million, primarily reflecting seasonally-higher payroll and benefit-related costs in 1Q15.
- Occupancy and equipment expense increased$2.4 millionand professional and outside services expense increased$1.1 million.
- The efficiency ratio in 1Q15 increased to 61.9% from 61.3% in 4Q14 (see page 14).
- Non-operating expenses totaled$6.0 millionin 1Q15 compared to$0.6 millionin 4Q14.
- The effective income tax rate was 34.0% for 1Q15 and 33.9% for the full-year of 2014.
Commercial Banking
- Commercial loans increased$238 million, or 5% annualized, fromDecember 31, 2014.
- Average commercial loans totaled$19.3 billionin 1Q15, an increase of$235 million, or 5% annualized, from 4Q14.
- The ratio of originated non-performing commercial loans to originated commercial loans was 0.64% atMarch 31, 2015compared to 0.76% atDecember 31, 2014.
- Non-performing commercial assets, excluding acquired non-performing loans, totaled$135.4 millionatMarch 31, 2015compared to$154.9 millionatDecember 31, 2014.
- Net loan charge-offs totaled$6.0 million, or 0.12% annualized, of average commercial loans in 1Q15, compared to$6.5 million, or 0.14% annualized, in 4Q14.
- For the originated commercial portfolio, the allowance for loan losses as a percentage of loans was 0.91% at bothMarch 31, 2015andDecember 31, 2014.
- The commercial originated allowance for loan losses represented 143% of originated non-performing commercial loans atMarch 31, 2015compared to 120% atDecember 31, 2014.
- Commercial deposits totaled$7.8 billionatMarch 31, 2015compared to$7.2 billionatDecember 31, 2014.
Retail Banking
- Residential mortgage loans increased$119 million, or 10% annualized, fromDecember 31, 2014.
- Average residential mortgage loans totaled$5.0 billionin 1Q15, an increase of$132 million, or 11% annualized, from 4Q14.
- The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 0.78% atMarch 31, 2015compared to 0.80% atDecember 31, 2014.
- Net loan charge-offs totaled$0.4 million, or 0.03% annualized, of average residential mortgage loans in 1Q15, compared to$0.2 million, or 0.02% annualized, in 4Q14.
- Home equity loans decreased$14 million, or 3% annualized, fromDecember 31, 2014.
- Average home equity loans totaled$2.1 billionin 1Q15, an increase of$4 million, or 1% annualized, from 4Q14.
- The ratio of originated non-performing home equity loans to originated home equity loans was 0.93% atMarch 31, 2015compared to 0.85% atDecember 31, 2014.
- Net loan charge-offs totaled$0.5 million, or 0.10% annualized, of average home equity loans in 1Q15, compared to$1.3 million, or 0.24% annualized, in 4Q14.
- Retail deposits (excluding brokered deposits) totaled$16.7 billionatMarch 31, 2015compared to$16.3 billionatDecember 31, 2014.
| People's United Financial, Inc. | |||||
| FINANCIAL HIGHLIGHTS | |||||
| Three Months Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions, except per share data) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Earnings Data: | |||||
| Net interest income (fully taxable equivalent) | $ 233.9 | $ 233.2 | $ 233.3 | $ 232.8 | $ 231.8 |
| Net interest income | 228.1 | 228.1 | 228.5 | 228.2 | 227.1 |
| Provision for loan losses | 9.8 | 9.9 | 12.4 | 8.8 | 9.5 |
| Non-interest income (1) | 89.0 | 86.8 | 84.0 | 100.1 | 79.9 |
| Non-interest expense | 217.6 | 207.7 | 208.8 | 208.3 | 216.7 |
| Operating non-interest expense (2) | 211.6 | 207.1 | 206.7 | 206.7 | 211.5 |
| Income before income tax expense | 89.7 | 97.3 | 91.3 | 111.2 | 80.8 |
| Net income | 59.2 | 64.7 | 61.6 | 72.3 | 53.1 |
| Operating earnings (2) | 63.2 | 65.1 | 63.0 | 59.9 | 56.5 |
| Selected Statistical Data: | |||||
| Net interest margin (3) | 2.91% | 3.00% | 3.05% | 3.13% | 3.17% |
| Return on average assets (3) | 0.66 | 0.74 | 0.72 | 0.87 | 0.65 |
| Operating return on average assets (2), (3) | 0.71 | 0.75 | 0.74 | 0.72 | 0.69 |
| Return on average tangible assets (3) | 0.70 | 0.79 | 0.77 | 0.93 | 0.69 |
| Return on average stockholders' equity (3) | 5.1 | 5.5 | 5.3 | 6.3 | 4.7 |
| Return on average tangible stockholders' equity (3) | 9.2 | 10.1 | 9.7 | 11.6 | 8.7 |
| Operating return on average tangible | |||||
| stockholders' equity (2), (3) | 9.9 | 10.1 | 9.9 | 9.6 | 9.3 |
| Efficiency ratio (2) | 61.9 | 61.3 | 61.4 | 61.8 | 63.9 |
| Common Share Data: | |||||
| Basic and diluted earnings per share | $ 0.20 | $ 0.22 | $ 0.21 | $ 0.24 | $ 0.18 |
| Operating earnings per share (2) | 0.21 | 0.22 | 0.21 | 0.20 | 0.19 |
| Dividends paid per share | 0.165 | 0.165 | 0.165 | 0.165 | 0.1625 |
| Dividend payout ratio | 83.7% | 76.5% | 80.2% | 68.4% | 91.5% |
| Operating dividend payout ratio (2) | 78.3 | 76.0 | 78.4 | 82.5 | 86.0 |
| Book value per share (end of period) | $ 15.55 | $ 15.44 | $ 15.52 | $ 15.46 | $ 15.35 |
| Tangible book value per share (end of period) (2) | 8.58 | 8.43 | 8.49 | 8.41 | 8.26 |
| Stock price: | |||||
| High | 15.45 | 15.50 | 15.32 | 15.23 | 15.70 |
| Low | 13.97 | 13.61 | 14.24 | 14.00 | 13.73 |
| Close (end of period) | 15.20 | 15.18 | 14.47 | 15.17 | 14.87 |
| Common shares (end of period) (in millions) | 301.18 | 300.13 | 299.92 | 299.79 | 299.49 |
| Weighted average diluted common shares (in millions) | 299.15 | 298.65 | 298.44 | 298.24 | 297.72 |
| (1) | Three months ended June 30, 2014 includes a $20.6 million net gain resulting from the formation of a merchantservices 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 | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Financial Condition Data: | |||||
| General: | |||||
| Total assets | $ 36,407 | $ 35,997 | $ 34,775 | $ 33,921 | $ 33,112 |
| Loans | 26,929 | 26,592 | 25,954 | 25,455 | 24,629 |
| Securities | 5,577 | 5,012 | 4,687 | 4,580 | 4,690 |
| Short-term investments (1) | 250 | 769 | 508 | 99 | 73 |
| Allowance for loan losses | 201 | 198 | 197 | 193 | 190 |
| Goodwill and other acquisition-related intangible assets | 2,097 | 2,103 | 2,109 | 2,115 | 2,121 |
| Deposits | 27,150 | 26,138 | 25,261 | 24,089 | 23,666 |
| Borrowings | 3,143 | 3,692 | 3,416 | 3,773 | 3,887 |
| Notes and debentures | 1,042 | 1,034 | 1,022 | 1,040 | 639 |
| Stockholders' equity | 4,682 | 4,633 | 4,655 | 4,636 | 4,596 |
| Total risk-weighted assets (2) | 28,195 | 27,487 | 26,967 | 26,591 | 25,749 |
| Non-performing assets (3) | 209 | 224 | 229 | 233 | 231 |
| Net loan charge-offs | 7.2 | 8.5 | 8.1 | 6.5 | 7.0 |
| Average Balances: | |||||
| Loans | $ 26,504 | $ 26,136 | $ 25,611 | $ 24,856 | $ 24,248 |
| Securities (4) | 5,325 | 4,718 | 4,691 | 4,674 | 4,908 |
| Short-term investments (1) | 276 | 276 | 254 | 206 | 121 |
| Total earning assets | 32,105 | 31,130 | 30,556 | 29,736 | 29,277 |
| Total assets | 35,768 | 34,763 | 34,150 | 33,273 | 32,799 |
| Deposits | 26,579 | 25,781 | 24,660 | 23,851 | 22,863 |
| Borrowings | 3,018 | 2,854 | 3,443 | 3,793 | 4,348 |
| Notes and debentures | 1,041 | 1,027 | 1,022 | 661 | 639 |
| Total funding liabilities | 30,638 | 29,662 | 29,125 | 28,305 | 27,850 |
| Stockholders' equity | 4,663 | 4,679 | 4,648 | 4,609 | 4,564 |
| Ratios: | |||||
| Net loan charge-offs to average total loans (annualized) | 0.11% | 0.13% | 0.13% | 0.10% | 0.12% |
| Non-performing assets to originated loans,real estate owned and repossessed assets (3) |
0.80 |
0.88 |
0.92 |
0.96 |
1.00 |
| Originated allowance for loan losses to: | |||||
| Originated loans (3) | 0.74 | 0.74 | 0.75 | 0.75 | 0.78 |
| Originated non-performing loans (3) | 107.5 | 95.5 | 94.1 | 91.7 | 92.7 |
| Average stockholders' equity to average total assets | 13.0 | 13.5 | 13.6 | 13.9 | 13.9 |
| Stockholders' equity to total assets | 12.9 | 12.9 | 13.4 | 13.7 | 13.9 |
| Tangible stockholders' equity to tangible assets (5) | 7.5 | 7.5 | 7.8 | 7.9 | 8.0 |
| Total risk-based capital (2) | 12.0 | 12.2 | 12.3 | 12.5 | 11.2 |
| (1) | Includes securities purchased under agreements to resell. |
| (2) | Consolidated. Effective January 1, 2015, calculated in accordance with Basel III capital rules. March 31, 2015 amounts are preliminary. |
| (3) | Excludes acquired loans. |
| (4) | Average balances for securities are based on amortized cost. |
| (5) | See Non-GAAP Financial Measures and Reconciliation to GAAP. |
| People's United Financial, Inc. | |||
| CONSOLIDATED STATEMENTS OF CONDITION | |||
| March 31, | Dec. 31, | March 31, | |
| (in millions) | 2015 | 2014 | 2014 |
| Assets | |||
| Cash and due from banks | $ 306.8 | $ 345.1 | $ 427.7 |
| Short-term investments | 250.0 | 668.6 | 72.7 |
| Total cash and cash equivalents | 556.8 | 1,013.7 | 500.4 |
| Securities purchased under agreements to resell | - | 100.0 | - |
| Securities: | |||
| Trading account securities, at fair value | 8.3 | 8.3 | 8.3 |
| Securities available for sale, at fair value | 4,356.8 | 3,993.7 | 3,848.1 |
| Securities held to maturity, at amortized cost | 897.4 | 834.3 | 658.1 |
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 314.2 | 175.7 | 175.7 |
| Total securities | 5,576.7 | 5,012.0 | 4,690.2 |
| Loans held for sale | 49.7 | 34.2 | 17.4 |
| Loans: | |||
| Commercial | 10,226.8 | 10,055.1 | 8,971.6 |
| Commercial real estate | 9,470.4 | 9,404.3 | 9,003.7 |
| Residential mortgage | 5,050.6 | 4,932.0 | 4,505.4 |
| Consumer | 2,181.5 | 2,200.6 | 2,148.5 |
| Total loans | 26,929.3 | 26,592.0 | 24,629.2 |
| Less allowance for loan losses | (200.9) | (198.3) | (190.3) |
| Total loans, net | 26,728.4 | 26,393.7 | 24,438.9 |
| Goodwill and other acquisition-related intangible assets | 2,096.6 | 2,102.5 | 2,121.1 |
| Bank-owned life insurance | 344.4 | 343.3 | 340.3 |
| Premises and equipment | 268.4 | 277.8 | 292.5 |
| Other assets | 786.3 | 719.9 | 711.6 |
| Total assets | $ 36,407.3 | $ 35,997.1 | $ 33,112.4 |
| Liabilities | |||
| Deposits: | |||
| Non-interest-bearing | $ 5,761.9 | $ 5,655.1 | $ 5,372.8 |
| Savings, interest-bearing checking and money market | 16,086.4 | 15,252.4 | 13,858.1 |
| Time | 5,301.6 | 5,230.7 | 4,434.6 |
| Total deposits | 27,149.9 | 26,138.2 | 23,665.5 |
| Borrowings: | |||
| Federal Home Loan Bank advances | 2,165.9 | 2,291.7 | 2,619.0 |
| Federal funds purchased | 496.0 | 913.0 | 775.0 |
| Customer repurchase agreements | 480.0 | 486.0 | 486.6 |
| Other borrowings | 1.0 | 1.0 | 6.8 |
| Total borrowings | 3,142.9 | 3,691.7 | 3,887.4 |
| Notes and debentures | 1,042.3 | 1,033.5 | 639.3 |
| Other liabilities | 390.3 | 500.6 | 324.4 |
| Total liabilities | 31,725.4 | 31,364.0 | 28,516.6 |
| Stockholders' Equity | |||
| Common stock | 3.9 | 3.9 | 3.9 |
| Additional paid-in capital | 5,304.2 | 5,291.2 | 5,276.4 |
| Retained earnings | 833.2 | 826.7 | 778.2 |
| Accumulated other comprehensive loss | (140.6) | (168.2) | (137.5) |
| Unallocated common stock of Employee Stock Ownership Plan, at cost | (157.2) | (159.0) | (164.4) |
| Treasury stock, at cost | (1,161.6) | (1,161.5) | (1,160.8) |
| Total stockholders' equity | 4,681.9 | 4,633.1 | 4,595.8 |
| Total liabilities and stockholders' equity | $ 36,407.3 | $ 35,997.1 | $ 33,112.4 |
| People's United Financial, Inc. | |||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||
| Three Months Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (in millions, except per share data) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Interest and dividend income: | |||||
| Commercial | $ 88.9 | $ 89.1 | $ 89.1 | $ 87.5 | $ 85.3 |
| Commercial real estate | 85.3 | 87.7 | 89.2 | 88.6 | 88.7 |
| Residential mortgage | 40.2 | 39.8 | 38.1 | 37.8 | 37.8 |
| Consumer | 18.1 | 18.7 | 18.5 | 18.4 | 18.3 |
| Total interest on loans | 232.5 | 235.3 | 234.9 | 232.3 | 230.1 |
| Securities | 27.5 | 24.0 | 23.6 | 24.1 | 25.1 |
| Loans held for sale | 0.2 | 0.2 | 0.3 | 0.2 | 0.1 |
| Short-term investments | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Total interest and dividend income | 260.3 | 259.6 | 258.9 | 256.7 | 255.4 |
| Interest expense: | |||||
| Deposits | 22.2 | 21.7 | 20.2 | 19.7 | 19.3 |
| Borrowings | 2.6 | 2.4 | 2.8 | 2.8 | 3.1 |
| Notes and debentures | 7.4 | 7.4 | 7.4 | 6.0 | 5.9 |
| Total interest expense | 32.2 | 31.5 | 30.4 | 28.5 | 28.3 |
| Net interest income | 228.1 | 228.1 | 228.5 | 228.2 | 227.1 |
| Provision for loan losses | 9.8 | 9.9 | 12.4 | 8.8 | 9.5 |
| Net interest income after provision for loan losses | 218.3 | 218.2 | 216.1 | 219.4 | 217.6 |
| Non-interest income: | |||||
| Bank service charges | 30.1 | 32.0 | 33.3 | 32.8 | 30.5 |
| Commercial banking lending fees | 12.3 | 8.6 | 8.6 | 7.4 | 8.8 |
| Investment management fees | 10.8 | 10.5 | 10.7 | 10.6 | 9.8 |
| Operating lease income | 10.8 | 10.2 | 10.2 | 9.9 | 11.3 |
| Insurance revenue | 7.6 | 6.6 | 8.8 | 6.8 | 7.7 |
| Customer interest rate swap income, net | 5.3 | 3.2 | 1.8 | 2.2 | 1.4 |
| Brokerage commissions | 3.2 | 3.4 | 3.4 | 3.6 | 3.2 |
| Net gains (losses) on sales of acquired loans | 1.9 | (0.3) | (0.2) | (0.4) | - |
| Net gains on sales of residential mortgage loans | 0.7 | 1.0 | 1.1 | - | 0.8 |
| Net security gains | - | 2.7 | 0.2 | - | 0.1 |
| Gain on merchant services joint venture, net of expenses | - | - | - | 20.6 | - |
| Other non-interest income | 6.3 | 8.9 | 6.1 | 6.6 | 6.3 |
| Total non-interest income (1) | 89.0 | 86.8 | 84.0 | 100.1 | 79.9 |
| Non-interest expense: | |||||
| Compensation and benefits | 114.8 | 108.2 | 108.1 | 109.3 | 110.4 |
| Occupancy and equipment | 38.7 | 36.3 | 36.4 | 36.6 | 38.0 |
| Professional and outside services | 15.8 | 14.7 | 14.3 | 14.9 | 15.3 |
| Regulatory assessments | 9.3 | 9.4 | 8.5 | 9.0 | 8.7 |
| Operating lease expense | 9.3 | 8.9 | 8.7 | 8.7 | 11.1 |
| Amortization of other acquisition-related intangible assets | 5.9 | 6.2 | 6.2 | 6.2 | 6.2 |
| Other non-interest expense | 23.8 | 24.0 | 26.6 | 23.6 | 27.0 |
| Total non-interest expense (1) | 217.6 | 207.7 | 208.8 | 208.3 | 216.7 |
| Income before income tax expense | 89.7 | 97.3 | 91.3 | 111.2 | 80.8 |
| Income tax expense | 30.5 | 32.6 | 29.7 | 38.9 | 27.7 |
| Net income | $ 59.2 | $ 64.7 | $ 61.6 | $ 72.3 | $ 53.1 |
| Basic and diluted earnings per common share | $ 0.20 | $ 0.22 | $ 0.21 | $ 0.24 | $ 0.18 |
| (1) | Total non-interest income includes $20.6 million of non-operating income for the three months ended June 30, 2014.Total non-interest expense includes $6.0 million, $0.6 million, $2.1 million, $1.6 million and $5.2 million of non-operatingexpenses for the three months ended March 31, 2015, Dec. 31, 2014, Sept. 30, 2014, June 30, 2014 and March 31, 2014,respectively. See Non-GAAP Financial Measures and Reconciliation to GAAP. |
| People's United Financial, Inc. | ||||||
| AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1) | ||||||
| March 31, 2015 | December 31, 2014 | |||||
| Three months ended | Average | Yield/ | Average | Yield/ | ||
| (dollars in millions) | Balance | Interest | Rate | Balance | Interest | Rate |
| Assets: | ||||||
| Short-term investments (2) | $ 275.9 | $ 0.1 | 0.20% | $ 276.1 | $ 0.1 | 0.20% |
| Securities (3) | 5,325.0 | 30.7 | 2.31 | 4,718.4 | 26.7 | 2.26 |
| Loans: | ||||||
| Commercial (4) | 9,896.0 | 91.5 | 3.70 | 9,694.2 | 91.5 | 3.78 |
| Commercial real estate | 9,401.6 | 85.3 | 3.63 | 9,368.8 | 87.7 | 3.75 |
| Residential mortgage | 5,010.1 | 40.4 | 3.23 | 4,877.8 | 40.0 | 3.28 |
| Consumer | 2,196.4 | 18.1 | 3.30 | 2,195.0 | 18.7 | 3.40 |
| Total loans | 26,504.1 | 235.3 | 3.55 | 26,135.8 | 237.9 | 3.64 |
| Total earning assets | 32,105.0 | $ 266.1 | 3.32% | 31,130.3 | $ 264.7 | 3.40% |
| Other assets | 3,663.3 | 3,633.1 | ||||
| Total assets | $ 35,768.3 | $ 34,763.4 | ||||
| Liabilities and stockholders' equity: | ||||||
| Deposits: | ||||||
| Non-interest-bearing | $ 5,603.2 | $ - | - % | $ 5,575.7 | $ - | - % |
| Savings, interest-bearing checking | ||||||
| and money market | 15,692.0 | 10.0 | 0.26 | 15,035.6 | 9.8 | 0.26 |
| Time | 5,284.1 | 12.2 | 0.92 | 5,169.5 | 11.9 | 0.92 |
| Total deposits | 26,579.3 | 22.2 | 0.33 | 25,780.8 | 21.7 | 0.34 |
| Borrowings: | ||||||
| Federal Home Loan Bank advances | 2,058.0 | 2.2 | 0.42 | 1,943.4 | 2.0 | 0.42 |
| Customer repurchase agreements | 486.6 | 0.2 | 0.18 | 461.1 | 0.2 | 0.19 |
| Federal funds purchased | 472.5 | 0.2 | 0.17 | 447.8 | 0.2 | 0.16 |
| Other borrowings | 1.0 | - | 1.78 | 1.3 | - | 1.36 |
| Total borrowings | 3,018.1 | 2.6 | 0.34 | 2,853.6 | 2.4 | 0.34 |
| Notes and debentures | 1,040.7 | 7.4 | 2.83 | 1,027.5 | 7.4 | 2.90 |
| Total funding liabilities | 30,638.1 | $ 32.2 | 0.42% | 29,661.9 | $ 31.5 | 0.43% |
| Other liabilities | 467.1 | 422.3 | ||||
| Total liabilities | 31,105.2 | 30,084.2 | ||||
| Stockholders' equity | 4,663.1 | 4,679.2 | ||||
| Total liabilities and | ||||||
| stockholders' equity | $ 35,768.3 | $ 34,763.4 | ||||
| Net interest income/spread (5) | $ 233.9 | 2.90% | $ 233.2 | 2.97% | ||
| Net interest margin | 2.91% | 3.00% | ||||
| (1) | Average yields earned and rates paid are annualized. |
| (2) | Includes securities purchased under agreements to resell. |
| (3) | Average balances and yields for securities are based on amortized cost. |
| (4) | Includes commercial and industrial loans and equipment financing loans. |
| (5) | The fully taxable equivalent adjustment was $5.8 million, $5.1 million and $4.7 million for the three months endedMarch 31, 2015, December 31, 2014 and March 31, 2014, respectively. |
| People's United Financial, Inc. | |||
| AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1) | |||
| March 31, 2014 | |||
| Three months ended | Average | Yield/ | |
| (dollars in millions) | Balance | Interest | Rate |
| Assets: | |||
| Short-term investments (2) | $ 120.9 | $ 0.1 | 0.19% |
| Securities (3) | 4,907.9 | 27.3 | 2.23 |
| Loans: | |||
| Commercial (4) | 8,702.7 | 87.8 | 4.04 |
| Commercial real estate | 8,904.5 | 88.7 | 3.98 |
| Residential mortgage | 4,482.4 | 37.9 | 3.38 |
| Consumer | 2,158.7 | 18.3 | 3.40 |
| Total loans | 24,248.3 | 232.7 | 3.84 |
| Total earning assets | 29,277.1 | $ 260.1 | 3.55% |
| Other assets | 3,521.7 | ||
| Total assets | $ 32,798.8 | ||
| Liabilities and stockholders' equity: | |||
| Deposits: | |||
| Non-interest-bearing | $ 5,187.5 | $ - | - % |
| Savings, interest-bearing checking | |||
| and money market | 13,278.3 | 8.6 | 0.26 |
| Time | 4,397.6 | 10.7 | 0.98 |
| Total deposits | 22,863.4 | 19.3 | 0.34 |
| Borrowings: | |||
| Federal Home Loan Bank advances | 3,221.6 | 2.6 | 0.32 |
| Customer repurchase agreements | 507.6 | 0.2 | 0.19 |
| Federal funds purchased | 610.3 | 0.3 | 0.17 |
| Other borrowings | 8.3 | - | 0.25 |
| Total borrowings | 4,347.8 | 3.1 | 0.28 |
| Notes and debentures | 639.2 | 5.9 | 3.69 |
| Total funding liabilities | 27,850.4 | $ 28.3 | 0.41% |
| Other liabilities | 384.3 | ||
| Total liabilities | 28,234.7 | ||
| Stockholders' equity | 4,564.1 | ||
| Total liabilities and | |||
| stockholders' equity | $ 32,798.8 | ||
| Net interest income/spread (5) | $ 231.8 | 3.14% | |
| Net interest margin | 3.17% | ||
| (1) | Average yields earned and rates paid are annualized. |
| (2) | Includes securities purchased under agreements to resell. |
| (3) | Average balances and yields for securities are based on amortized cost. |
| (4) | Includes commercial and industrial loans and equipment financing loans. |
| (5) | The fully taxable equivalent adjustment was $5.8 million, $5.1 million and $4.7 million for the three months endedMarch 31, 2015, December 31, 2014 and March 31, 2014, respectively. |
| People's United Financial, Inc. |
| Loans acquired in connection with business combinations are initially recorded at fair value, determined basedupon an estimate of expected cash flows, including a reduction for estimated credit losses, and without carryoverof the respective portfolio's historical allowance for loan losses. A decrease in expected cash flows in subsequentperiods may indicate that a loan is impaired, which would require the establishment of an allowance for loanlosses. As such, selected asset quality metrics have been highlighted to distinguish between the 'originated'portfolio and the 'acquired' portfolio. |
| NON-PERFORMING ASSETS | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Originated non-performing loans: | |||||
| Commercial: | |||||
| Commercial real estate | $ 43.3 | $ 60.2 | $ 56.0 | $ 59.7 | $ 60.1 |
| Commercial and industrial | 42.6 | 55.8 | 52.8 | 45.8 | 41.7 |
| Equipment financing | 34.9 | 25.4 | 29.3 | 30.7 | 22.0 |
| Total | 120.8 | 141.4 | 138.1 | 136.2 | 123.8 |
| Retail: | |||||
| Residential mortgage | 37.5 | 37.6 | 41.8 | 44.8 | 51.3 |
| Home equity | 19.4 | 17.9 | 16.6 | 18.0 | 19.0 |
| Other consumer | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 |
| Total | 57.0 | 55.6 | 58.5 | 62.9 | 70.5 |
| Total originated non-performing loans (1) | 177.8 | 197.0 | 196.6 | 199.1 | 194.3 |
| REO: | |||||
| Residential | 16.5 | 13.6 | 16.2 | 14.9 | 17.0 |
| Commercial | 10.2 | 11.0 | 12.4 | 13.9 | 16.5 |
| Total REO | 26.7 | 24.6 | 28.6 | 28.8 | 33.5 |
| Repossessed assets | 4.3 | 2.5 | 3.5 | 4.8 | 3.7 |
| Total non-performing assets | $ 208.8 | $ 224.1 | $ 228.7 | $ 232.7 | $ 231.5 |
| Acquired non-performing loans (contractual amount) (2) | $ 74.8 | $ 103.6 | $ 116.3 | $ 118.3 | $ 145.7 |
| Originated non-performing loans as a percentage | |||||
| of originated loans | 0.68% | 0.77% | 0.79% | 0.82% | 0.84% |
| Non-performing assets as a percentage of: | |||||
| Originated loans, REO and repossessed assets | 0.80 | 0.88 | 0.92 | 0.96 | 1.00 |
| Tangible stockholders' equity and originated | |||||
| allowance for loan losses | 7.52 | 8.24 | 8.37 | 8.61 | 8.72 |
| (1) | Reported net of government guarantees totaling $17.5 million at March 31, 2015, $17.6 million at Dec. 31, 2014,$18.1 million at Sept. 30, 2014, $18.4 million at June 30, 2014 and $19.2 million at March 31, 2014. |
| (2) | Represents acquired loans that meet People's United Financial's definition of a non-performing loan but are not, under theaccounting 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 loanlosses recognized subsequent to acquisition. |
| People's United Financial, Inc. | |||||
| PROVISION AND ALLOWANCE FOR LOAN LOSSES | |||||
| Three Months Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Allowance for loan losses on originated loans: | |||||
| Balance at beginning of period | $ 188.1 | $ 185.0 | $ 182.5 | $ 180.0 | $ 177.5 |
| Charge-offs | (8.1) | (9.7) | (9.1) | (8.1) | (6.4) |
| Recoveries | 0.9 | 1.2 | 1.2 | 2.6 | 0.9 |
| Net loan charge-offs | (7.2) | (8.5) | (7.9) | (5.5) | (5.5) |
| Provision for loan losses | 10.2 | 11.6 | 10.4 | 8.0 | 8.0 |
| Balance at end of period | 191.1 | 188.1 | 185.0 | 182.5 | 180.0 |
| Allowance for loan losses on acquired loans: | |||||
| Balance at beginning of period | 10.2 | 11.9 | 10.1 | 10.3 | 10.3 |
| Charge-offs | - | - | (0.2) | (1.0) | (1.5) |
| Provision for loan losses | (0.4) | (1.7) | 2.0 | 0.8 | 1.5 |
| Balance at end of period | 9.8 | 10.2 | 11.9 | 10.1 | 10.3 |
| Total allowance for loan losses | $ 200.9 | $ 198.3 | $ 196.9 | $ 192.6 | $ 190.3 |
| Commercial originated allowance for loan loss | |||||
| as a percentage of originated commercial loans | 0.91% | 0.91% | 0.92% | 0.92% | 0.95% |
| Retail originated allowance for loan losses | |||||
| as a percentage of originated retail loans | 0.26 | 0.27 | 0.29 | 0.30 | 0.32 |
| Total originated allowance for loan losses | |||||
| as a percentage of: | |||||
| Originated loans | 0.74 | 0.74 | 0.75 | 0.75 | 0.78 |
| Originated non-performing loans | 107.5 | 95.5 | 94.1 | 91.7 | 92.7 |
| NET LOAN CHARGE-OFFS (RECOVERIES) | |||||
| Three Months Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Commercial: | |||||
| Commercial real estate | $ 2.8 | $ 3.3 | $ 4.2 | $ 3.0 | $ 2.9 |
| Commercial and industrial | 2.1 | 3.2 | 1.8 | 1.8 | 0.6 |
| Equipment financing | 1.1 | - | (0.1) | 0.1 | 0.5 |
| Total | 6.0 | 6.5 | 5.9 | 4.9 | 4.0 |
| Retail: | |||||
| Residential mortgage | 0.4 | 0.2 | 0.7 | 0.5 | 1.0 |
| Home equity | 0.5 | 1.3 | 1.2 | 0.8 | 1.7 |
| Other consumer | 0.3 | 0.5 | 0.3 | 0.3 | 0.3 |
| Total | 1.2 | 2.0 | 2.2 | 1.6 | 3.0 |
| Total | $ 7.2 | $ 8.5 | $ 8.1 | $ 6.5 | $ 7.0 |
| Net loan charge-offs to | |||||
| average total loans (annualized) | 0.11% | 0.13% | 0.13% | 0.10% | 0.12% |
| 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. generallyaccepted accounting principles ("GAAP"), management routinely supplements their evaluation with an analysis ofcertain non-GAAP financial measures, such as the efficiency and tangible equity ratios, tangible book value pershare and operating earnings metrics. Management believes these non-GAAP financial measures provide informationuseful to investors in understanding People's United Financial's underlying operating performance and trends, andfacilitates comparisons with the performance of other financial institutions. Further, the efficiency ratio and operatingearnings metrics are used by management in its assessment of financial performance, including non-interest expensecontrol, while the tangible equity ratio and tangible book value per share are used to analyze the relative strengthof People's United Financial's capital position. |
| The efficiency ratio, which represents an approximate measure of the cost required by People's United Financialto generate a dollar of revenue, is the ratio of (i)total non-interest expense (excluding goodwill impairmentcharges, amortization of other acquisition-related intangible assets, losses on real estate assets and non-recurringexpenses) (the numerator) to (ii)net interest income on a fully taxable equivalent ("FTE") basis plus totalnon-interest income (including the FTE adjustment on bank-owned life insurance ("BOLI") income, and excludinggains 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 againstoperating lease income within non-interest income to conform with the reporting approach applied to fee-basedbusinesses already presented on a net basis. People's United Financial generally considers an item of incomeor expense to be non-recurring if it is not similar to an item of income or expense of a type incurred withinthe last two years and is not similar to an item of income or expense of a type reasonably expected to be incurredwithin the following two years. |
| Operating earnings exclude from net income those items that management considers to be of such a non-recurringor infrequent nature that, by excluding such items (net of income taxes), People's United Financial's results can bemeasured and assessed on a more consistent basis from period to period. Items excluded from operating earnings,which include, but are not limited to: (i) non-recurring gains/losses; (ii) writedowns of banking house assets;(iii) severance-related costs; (iv) merger-related expenses, including acquisition integration and other costs; and(v) charges related to executive-level management separation costs, are generally also excluded whencalculating the efficiency ratio. Operating earnings per share is derived by determining the per share impact of therespective adjustments to arrive at operating earnings and adding (subtracting) such amounts to (from) GAAPearnings per share. Operating return on average assets is calculated by dividing operating earnings (annualized) byaverage total assets. Operating return on average tangible stockholders' equity is calculated by dividing operatingearnings (annualized) by average tangible stockholders' equity. The operating dividend payout ratio is calculatedby 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 goodwilland other acquisition-related intangible assets) (the numerator) to (ii)tangible assets (total assets less goodwill andother acquisition-related intangible assets) (the denominator). Tangible book value per share is calculated bydividing tangible stockholders' equity by common shares (total common shares issued, less common sharesclassified 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 UnitedFinancial for determining the non-GAAP financial measures discussed above may differ from those used by otherfinancial 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 | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Total non-interest expense | $ 217.6 | $ 207.7 | $ 208.8 | $ 208.3 | $ 216.7 |
| Adjustments to arrive at operating | |||||
| non-interest expense: | |||||
| Writedowns of banking house assets | (5.3) | - | (1.8) | - | (4.4) |
| Severance-related costs | (0.7) | (0.6) | (0.3) | (1.6) | (0.8) |
| Total | (6.0) | (0.6) | (2.1) | (1.6) | (5.2) |
| Operating non-interest expense | 211.6 | 207.1 | 206.7 | 206.7 | 211.5 |
| Operating lease expense (1) | (9.3) | (8.9) | (8.7) | (8.7) | (11.1) |
| Amortization of other acquisition-related | |||||
| intangible assets | (5.9) | (6.2) | (6.2) | (6.2) | (6.2) |
| Other (2) | (2.0) | (2.4) | (2.2) | (3.7) | (2.0) |
| Total non-interest expense for efficiency ratio | $ 194.4 | $ 189.6 | $ 189.6 | $ 188.1 | $ 192.2 |
| Net interest income (FTE basis) | $ 233.9 | $ 233.2 | $ 233.3 | $ 232.8 | $ 231.8 |
| Total non-interest income | 89.0 | 86.8 | 84.0 | 100.1 | 79.9 |
| Total revenues | 322.9 | 320.0 | 317.3 | 332.9 | 311.7 |
| Adjustments: | |||||
| Operating lease expense (1) | (9.3) | (8.9) | (8.7) | (8.7) | (11.1) |
| BOLI FTE adjustment | 0.6 | 0.9 | 0.7 | 0.6 | 0.6 |
| Net security gains | - | (2.7) | (0.2) | - | (0.1) |
| Gain on merchant services joint venture, | |||||
| net of expenses | - | - | - | (20.6) | - |
| Other (3) | - | 0.1 | (0.5) | - | (0.1) |
| Total revenues for efficiency ratio | $ 314.2 | $ 309.4 | $ 308.6 | $ 304.2 | $ 301.0 |
| Efficiency ratio | 61.9% | 61.3% | 61.4% | 61.8% | 63.9% |
| (1) | Operating lease expense is excluded from total non-interest expense and netted against operating lease incomewithin non-interest income to conform with the reporting approach applied to fee-based businesses alreadypresented on a net basis. |
| (2) | Items classified as "other" and deducted from non-interest expense for purposes of calculating theefficiency ratio include, as applicable, certain franchise taxes, real estate owned expenses, contracttermination costs and non-recurring expenses. |
| (3) | Items classified as "other" and added to (deducted from) total revenues for purposes of calculating theefficiency 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 | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions, except per share data) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Net income, as reported | $ 59.2 | $ 64.7 | $ 61.6 | $ 72.3 | $ 53.1 |
| Adjustments to arrive at operating earnings: | |||||
| Writedowns of banking house assets | 5.3 | - | 1.8 | - | 4.4 |
| Severance-related costs | 0.7 | 0.6 | 0.3 | 1.6 | 0.8 |
| Gain on merchant services joint venture, | |||||
| net of expenses | - | - | - | (20.6) | - |
| Total pre-tax adjustments | 6.0 | 0.6 | 2.1 | (19.0) | 5.2 |
| Tax effect | (2.0) | (0.2) | (0.7) | 6.6 | (1.8) |
| Total adjustments, net of tax | 4.0 | 0.4 | 1.4 | (12.4) | 3.4 |
| Operating earnings | $ 63.2 | $ 65.1 | $ 63.0 | $ 59.9 | $ 56.5 |
| Earnings per share, as reported | $ 0.20 | $ 0.22 | $ 0.21 | $ 0.24 | $ 0.18 |
| Adjustments to arrive at operating | |||||
| earnings per share: | |||||
| Writedowns of banking house assets | 0.01 | - | - | - | 0.01 |
| Severance-related costs | - | - | - | - | - |
| Gain on merchant services joint venture, | |||||
| net of expenses | - | - | - | (0.04) | - |
| Total adjustments per share | 0.01 | - | - | (0.04) | 0.01 |
| Operating earnings per share | $ 0.21 | $ 0.22 | $ 0.21 | $ 0.20 | $ 0.19 |
| Average total assets | $ 35,768 | $ 34,763 | $ 34,150 | $ 33,273 | $ 32,799 |
| Operating return on | |||||
| average assets (annualized) | 0.71% | 0.75% | 0.74% | 0.72% | 0.69% |
| OPERATING RETURN ON AVERAGE TANGIBLE STOCKHOLDERS' EQUITY | |||||
|
Three Months Ended |
|||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Operating earnings | $ 63.2 | $ 65.1 | $ 63.0 | $ 59.9 | $ 56.5 |
| Average stockholders' equity | $ 4,663 | $ 4,679 | $ 4,648 | $ 4,609 | $ 4,564 |
| Less: Average goodwill and average other | |||||
| acquisition-related intangible assets | 2,100 | 2,106 | 2,112 | 2,118 | 2,125 |
| Average tangible stockholders' equity | $ 2,563 | $ 2,573 | $ 2,536 | $ 2,491 | $ 2,439 |
| Operating return on average tangible | |||||
| stockholders' equity (annualized) | 9.9% | 10.1% | 9.9% | 9.6% | 9.3% |
| People's United Financial, Inc. | |||||
| NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued | |||||
| OPERATING DIVIDEND PAYOUT RATIO | |||||
| Three Months Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Dividends paid | $ 49.5 | $ 49.5 | $ 49.4 | $ 49.4 | $ 48.6 |
| Operating earnings | $ 63.2 | $ 65.1 | $ 63.0 | $ 59.9 | $ 56.5 |
| Operating dividend payout ratio | 78.3% | 76.0% | 78.4% | 82.5% | 86.0% |
| TANGIBLE EQUITY RATIO | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (dollars in millions) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Total stockholders' equity | $ 4,682 | $ 4,633 | $ 4,655 | $ 4,636 | $ 4,596 |
| Less: Goodwill and other | |||||
| acquisition-related intangible assets | 2,097 | 2,103 | 2,109 | 2,115 | 2,121 |
| Tangible stockholders' equity | $ 2,585 | $ 2,530 | $ 2,546 | $ 2,521 | $ 2,475 |
| Total assets | $ 36,407 | $ 35,997 | $ 34,775 | $ 33,921 | $ 33,112 |
| Less: Goodwill and other | |||||
| acquisition-related intangible assets | 2,097 | 2,103 | 2,109 | 2,115 | 2,121 |
| Tangible assets | $ 34,310 | $ 33,894 | $ 32,666 | $ 31,806 | $ 30,991 |
| Tangible equity ratio | 7.5% | 7.5% | 7.8% | 7.9% | 8.0% |
| TANGIBLE BOOK VALUE PER SHARE | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (in millions, except per share data) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Tangible stockholders' equity | $ 2,585 | $ 2,530 | $ 2,546 | $ 2,521 | $ 2,475 |
| Common shares issued | 397.81 | 396.85 | 396.71 | 396.66 | 396.45 |
| Less: Shares classified as treasury shares | 89.05 | 89.05 | 89.04 | 89.03 | 89.03 |
| Unallocated ESOP shares | 7.58 | 7.67 | 7.75 | 7.84 | 7.93 |
| Common shares | 301.18 | 300.13 | 299.92 | 299.79 | 299.49 |
| Tangible book value per share | $ 8.58 | $ 8.43 | $ 8.49 | $ 8.41 | $ 8.26 |
SOURCE: People's United Financial, Inc.BRIDGEPORT, Conn.,April 16, 2015/PRNewswire/Access Information About People's United Financial atwww.peoples.com.