People's United Financial, Inc (NASDAQ: PBCT) today reported net income of $58.5 million, or $0.19 per share, for the third quarter of 2013, compared to $62.2 million, or $0.18 per share, for the third quarter of 2012, and $62.1 million, or $0.20 per share, for the second quarter of 2013. Operating earnings were $60.8 million, or $0.20 per share, for the third quarter of 2013, compared to $64.4 million, or $0.19 per share, for the third quarter of 2012, and $62.4 million, or $0.20 per share, for the second quarter of 2013.
The Company's Board of Directors declared a $0.1625 per share quarterly dividend, payable November 15, 2013 to shareholders of record on November 1, 2013. Based on the closing stock price on October 16, 2013, the dividend yield on People's United Financial common stock is 4.4 percent.
During the third quarter of 2013 the Company repurchased 2.1 million shares of People's United Financial common stock at a weighted average price of $14.33 per share and, during the first nine months of 2013, the Company repurchased 24.5 million shares of common stock at a weighted average price of $13.39 per share. Under the existing share repurchase authorization, 8.9 million shares of common stock remain available for repurchase.
"Our performance this quarter reflects the continued benefits from strategic investments in people, products and services, as well as an expanded geographic footprint developed over the past three years," stated Jack Barnes, President and Chief Executive Officer. "Ongoing progress in loan and deposit growth, both this quarter and over the past 12 quarters, is a tribute to both our relationship managers and customers. We remain focused on delivering shareholder value by leveraging opportunities within existing markets, including strengthening our position in the Boston and New York MSAs."
"On an operating basis, earnings were $61 million, or 20 cents per share, this quarter," stated Kirk W. Walters, Senior Executive Vice President and Chief Financial Officer. "The net interest margin reflects the impact of continued strong loan originations, while non-interest income demonstrates the ongoing improvement in most of our fee-based businesses. Cost control remains an important area of focus. The modest increase in operating expenses this quarter primarily reflects higher payroll-related costs, professional and outside service fees, and real estate owned expenses."
Walters concluded, "We certainly are pleased with the sustained improvement in asset quality. Our low loan charge-off ratio is a reflection of the Company's historically strong underwriting standards, the economic strength of the geography in which we operate and the resilience of our customers. Of particular note, acquired non-performing loans have declined $27 million, or 20 percent annualized, and originated non-performing loans have declined $16 million, or 8 percent annualized, from December 31, 2012."
Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.17 percent in the third quarter of 2013 compared to 0.19 percent in the second quarter of 2013 and 0.18 percent in the third quarter of 2012. For the originated loan portfolio, non-performing loans equaled 1.10 percent of loans at September 30, 2013, compared to 1.18 percent at June 30, 2013 and 1.45 percent at September 30, 2012. Non-performing assets (excluding acquired non-performing loans) equaled 1.26 percent of originated loans, REO and repossessed assets at September 30, 2013, compared to 1.33 percent at June 30, 2013 and 1.59 percent at September 30, 2012.
Operating return on average assets was 0.78 percent for the third quarter of 2013, compared to 0.81 percent for the second quarter of 2013 and 0.91 percent for the third quarter of 2012. Operating return on average tangible stockholders' equity was 9.8 percent for the third quarter of 2013, compared to 9.3 percent for the second quarter of 2013 and 8.6 percent for the third quarter of 2012.
At September 30, 2013, People's United Financial's tier 1 common and total risk-based capital ratios were 11.4 percent and 12.6 percent, respectively, and the tangible equity ratio stood at 8.5 percent. People's United Bank's tier 1 and total risk-based capital ratios were 11.8 percent and 13.2 percent, respectively, at September 30, 2013.
People's United Financial, a diversified financial services company with $32 billion in assets, provides commercial and retail banking, as well as wealth management services through a network of 410 branches in Connecticut, New York,Massachusetts, Vermont, New Hampshire and Maine. Through its subsidiaries, People's United Financial provides equipment financing, brokerage and insurance services. Assets managed and administered, which are not reported as assets of People's United Financial, totaled $15.5 billion at September 30, 2013.
3Q 2013 Financial Highlights
Summary
Net income was $58.5 million, or $0.19 per share.
Operating earnings were $60.8 million, or $0.20 per share.
Net interest income totaled $223.5 million in 3Q13 compared to $220.9 million in 2Q13.
Interest income on acquired loans decreased $4.6 million from 2Q13 to $29.4 million.
Net interest margin decreased 3 basis points from 2Q13 to 3.30%.
The effect of one more calendar day in 3Q13 benefited the margin by 2 basis points.
The effect of new loan volume at lower rates reduced the margin by 6 basis points.
Provision for loan losses totaled $12.1 million.
Net loan charge-offs totaled $9.6 million, of which $6.4 million related to loans with specific reserves established in prior periods.
Reflects a $6.3 million increase in the originated allowance for loan losses due to loan growth.
Includes a provision for loan losses on acquired loans of $2.6 million, relating almost entirely to a single credit.
Non-interest income was $84.0 million in 3Q13 compared to $86.1 million in 2Q13.
Insurance revenue increased $2.0 million from 2Q13, primarily reflecting the seasonal nature of insurance renewals.
Bank service charges increased $1.2 million from 2Q13, in part due to the seasonal nature of certain fee categories.
Operating lease income increased $0.6 million from 2Q13.
Net gains on sales of acquired loans totaled $5.8 million in 2Q13 (none in 3Q13).
Assets under administration and those under full discretionary management, neither of which are reported as assets of People's United Financial, totaled $10.5 billion and $5.0 billion, respectively, at September 30, 2013.
Non-interest expense totaled $212.5 million in 3Q13 compared to $205.8 million in 2Q13.
Operating non-interest expense was $209.2 million in 3Q13 compared to $205.4 million in 2Q13. Excluding operating lease expense and amortization of acquisition-related intangible assets, operating non-interest expense totaled $194.9 million in 3Q13 compared to $191.2 million in 2Q13.
Compensation and benefits expense increased $2.5 million from 2Q13, primarily reflecting higher payroll-related costs in 3Q13.
Compared to 2Q13, professional and outside service fees increased $1.2 million and real estate owned expenses increased $0.5 million.
Efficiency ratio in 3Q13 increased to 63.6% from 62.7% in 2Q13, primarily reflecting the increase in total operating expenses.
Effective income tax rate was 29.5% for 3Q13 and 31.5% for the first nine months of 2013, compared to 32.4% for the full-year of 2012.
Commercial Banking
Commercial banking loans increased $212 million, or 5% annualized, from June 30, 2013.
Average commercial banking loans totaled $16.6 billion in 3Q13, an increase of $436 million, or 11% annualized, from 2Q13.
The ratio of originated non-performing commercial banking loans to originated commercial banking loans was 1.01% at September 30, 2013 compared to 1.10% at June 30, 2013.
Non-performing commercial banking assets, excluding acquired non-performing loans, totaled $177.1 millionat September 30, 2013 compared to $183.8 million at June 30, 2013.
Net loan charge-offs totaled $7.2 million, or 0.17% annualized, of average commercial banking loans in 3Q13, compared to $6.9 million, or 0.17% annualized, in 2Q13.
For the originated commercial banking portfolio, the allowance for loan losses as a percentage of loans was 1.02% atSeptember 30, 2013 compared to 1.05% at June 30, 2013.
The commercial banking originated allowance for loan losses represented 101% of originated non-performing commercial banking loans at September 30, 2013, compared to 96% at June 30, 2013.
Commercial deposits totaled $6.3 billion at September 30, 2013 compared to $5.8 billion at June 30, 2013.
Retail Banking
Residential mortgage loans increased $152 million, or 15% annualized, from June 30, 2013.
Average residential mortgage loans totaled $4.1 billion in 3Q13, an increase of $109 million, or 11% annualized, from 2Q13.
The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 1.51% at September 30, 2013 compared to 1.58% at June 30, 2013.
Net loan charge-offs totaled $0.4 million, or 0.04% annualized, of average residential mortgage loans in 3Q13, compared to $2.3 million, or 0.23% annualized, in 2Q13.
Home equity loans increased $5 million from June 30, 2013.
Average home equity loans totaled $2.0 billion in 3Q13, unchanged from 2Q13.
The ratio of originated non-performing home equity loans to originated home equity loans was 1.00% atSeptember 30, 2013 compared to 1.06% at June 30, 2013.
Net loan charge-offs totaled $1.6 million, or 0.30% annualized, of average home equity loans in 3Q13, compared to $1.4 million, or 0.28% annualized, in 2Q13.
Retail deposits totaled $15.9 billion at September 30, 2013 compared to $16.2 billion at June 30, 2013.
Conference Call
On October 17, 2013, at 5 p.m., Eastern Time, People's United Financial will host a conference call to discuss this earnings announcement. The call may be heard through www.peoples.com by selecting "Investor Relations" in the "About Us" section on the home page, and then selecting "Conference Calls" in the "News and Events" section. Additional materials relating to the call may also be accessed at People's United Bank's web site. The call will be archived on the web site and available for approximately 90 days.
Certain statements contained in this release are forward-looking in nature. These include all statements about People's United Financial's plans, objectives, expectations and other statements that are not historical facts, and usually use words such as "expect," "anticipate," "believe," "should" and similar expressions. Such statements represent management's current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause People's United Financial's actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors of particular importance to People's United Financial include, but are not limited to: (1) changes in general, national or regional economic conditions; (2) changes in interest rates; (3) changes in loan default and charge-off rates; (4) changes in deposit levels; (5) changes in levels of income and expense in non-interest income and expense related activities; (6) residential mortgage and secondary market activity; (7) changes in accounting and regulatory guidance applicable to banks; (8) price levels and conditions in the public securities markets generally; (9) competition and its effect on pricing, spending, third-party relationships and revenues; (10) the successful integration of acquisitions; and (11) changes in regulation resulting from or relating to financial reform legislation. People's United Financial does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Access Information About People's United Financial at www.peoples.com.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS
Three Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
(dollars in millions, except per share data)
2013
2013
2013
2012
2012
Earnings Data:
Net interest income
$ 223.5
$ 220.9
$ 219.3
$ 225.1
$ 234.8
Provision for loan losses
12.1
9.2
12.4
12.0
15.1
Non-interest income
84.0
86.1
82.9
84.3
81.4
Non-interest expense
212.5
205.8
212.0
207.4
208.9
Operating non-interest expense (1)
209.2
205.4
204.0
204.5
205.7
Income before income tax expense
82.9
92.0
77.8
90.0
92.2
Net income
58.5
62.1
52.5
61.2
62.2
Operating earnings (1)
60.8
62.4
57.9
63.2
64.4
Selected Statistical Data:
Net interest margin (2)
3.30%
3.33%
3.38%
3.63%
3.89%
Operating net interest margin (1), (2)
3.30
3.33
3.38
3.63
3.82
Return on average assets (2)
0.75
0.81
0.70
0.85
0.88
Operating return on average assets (1), (2)
0.78
0.81
0.77
0.87
0.91
Return on average tangible assets (2)
0.80
0.87
0.75
0.91
0.95
Return on average stockholders' equity (2)
5.1
5.2
4.2
4.8
4.8
Return on average tangible stockholders' equity (2)
9.4
9.3
7.4
8.3
8.3
Operating return on average tangible
stockholders' equity (1), (2)
9.8
9.3
8.1
8.6
8.6
Efficiency ratio (1)
63.6
62.7
64.1
63.0
61.4
Common Share Data:
Basic and diluted earnings per share
$ 0.19
$ 0.20
$ 0.16
$ 0.18
$ 0.18
Operating earnings per share (1)
0.20
0.20
0.18
0.19
0.19
Dividends paid per share
0.1625
0.1625
0.16
0.16
0.16
Dividend payout ratio
86.0%
83.6%
100.6%
87.4%
87.3%
Operating dividend payout ratio (1)
82.7
83.2
91.2
84.8
84.3
Book value per share (end of period)
$ 15.07
$ 15.11
$ 15.24
$ 15.21
$ 15.20
Tangible book value per share (end of period) (1)
8.14
8.20
8.54
8.71
8.77
Stock price:
High
15.67
15.00
13.61
12.50
12.55
Low
14.07
12.62
12.22
11.36
11.20
Close (end of period)
14.38
14.90
13.42
12.09
12.14
Common shares (end of period) (in millions)
307.72
309.59
320.65
331.27
335.95
Weighted average diluted common shares (in millions)
307.56
313.52
325.21
331.39
336.48
(1) See Non-GAAP financial measures and reconciliation to GAAP.
(2) Annualized.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
Nine Months Ended
September 30,
(dollars in millions, except per share data)
2013
2012
Earnings Data:
Net interest income
$ 663.7
$ 703.6
Provision for loan losses
33.7
37.2
Non-interest income
253.0
229.5
Non-interest expense
630.3
623.2
Operating non-interest expense (1)
618.6
613.4
Income before income tax expense
252.7
272.7
Net income
173.1
184.1
Operating earnings (1)
181.1
190.7
Selected Statistical Data:
Net interest margin (2)
3.33%
3.94%
Operating net interest margin (1), (2)
3.33
3.89
Return on average assets (2)
0.75
0.88
Operating return on average assets (1), (2)
0.79
0.91
Return on average tangible assets (2)
0.81
0.96
Return on average stockholders' equity (2)
4.8
4.7
Return on average tangible stockholders' equity (2)
8.6
8.1
Operating return on average tangible
stockholders' equity (1), (2)
9.0
8.4
Efficiency ratio (1)
63.5
62.1
Common Share Data:
Basic and diluted earnings per share
$ 0.55
$ 0.54
Operating earnings per share (1)
0.58
0.57
Dividends paid per share
0.4850
0.4775
Dividend payout ratio
89.5%
89.3%
Operating dividend payout ratio (1)
85.6
86.2
Book value per share (end of period)
$ 15.07
$ 15.20
Tangible book value per share (end of period) (1)
8.14
8.77
Stock price:
High
15.67
13.79
Low
12.22
11.20
Close (end of period)
14.38
12.14
Common shares (end of period) (in millions)
307.72
335.95
Weighted average diluted common shares (in millions)
315.37
340.69
(1) See Non-GAAP financial measures and reconciliation to GAAP.
(2) Annualized.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
As of and for the Three Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
(dollars in millions)
2013
2013
2013
2012
2012
Financial Condition Data:
General:
Total assets
$ 31,511
$ 31,345
$ 30,598
$ 30,324
$ 28,576
Loans
23,227
22,866
22,161
21,737
21,040
Securities
4,379
4,618
4,716
4,669
3,787
Short-term investments
148
120
127
131
64
Allowance for loan losses
188
186
187
188
186
Goodwill and other acquisition-related intangible assets
2,134
2,140
2,147
2,154
2,160
Deposits
22,190
21,982
21,792
21,751
21,363
Borrowings
3,621
3,626
2,849
2,386
1,524
Notes and debentures
639
639
659
659
160
Stockholders' equity
4,638
4,678
4,886
5,039
5,107
Total risk-weighted assets (1)
23,731
23,498
22,918
22,764
21,682
Non-performing assets (2)
271
281
285
290
294
Net loan charge-offs
9.6
10.8
13.1
10.0
9.4
Average Balances:
Loans
$ 22,916
$ 22,369
$ 21,727
$ 21,211
$ 20,758
Securities
4,529
4,557
4,548
3,867
3,608
Short-term investments
179
153
146
128
108
Total earning assets
27,624
27,079
26,421
25,206
24,474
Total assets
31,216
30,799
30,178
28,991
28,234
Deposits
22,066
21,835
21,558
21,557
21,372
Total funding liabilities
26,168
25,548
24,726
23,487
22,709
Stockholders' equity
4,622
4,825
5,005
5,107
5,161
Ratios:
Net loan charge-offs to average total loans (annualized)
0.17%
0.19%
0.24%
0.19%
0.18%
Non-performing assets to originated loans,
real estate owned and repossessed assets (2)
1.26
1.33
1.42
1.48
1.59
Originated allowance for loan losses to:
Originated loans (2)
0.82
0.85
0.88
0.91
0.95
Originated non-performing loans (2)
74.8
71.8
70.6
70.3
66.0
Average stockholders' equity to average total assets
14.8
15.7
16.6
17.6
18.3
Stockholders' equity to total assets
14.7
14.9
16.0
16.6
17.9
Tangible stockholders' equity to tangible assets (3)
8.5
8.7
9.6
10.2
11.2
Total risk-based capital (1)
12.6
12.8
13.7
14.7
15.6
(1) Consolidated.
(2) Excludes acquired loans.
(3) See Non-GAAP financial measures and reconciliation to GAAP.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION
Sept. 30,
June 30,
Dec. 31,
Sept. 30,
(in millions)
2013
2013
2012
2012
Assets
Cash and due from banks
$ 447.3
$ 379.6
$ 470.0
$ 358.3
Short-term investments
147.9
119.5
131.4
63.7
Total cash and cash equivalents
595.2
499.1
601.4
422.0
Securities:
Trading account securities, at fair value
6.3
6.4
6.5
6.3
Securities available for sale, at fair value
4,194.8
4,439.9
4,532.3
3,651.0
Securities held to maturity, at amortized cost
56.1
56.1
56.2
56.2
Federal Home Loan Bank stock, at cost
121.9
115.4
73.7
73.7
Total securities
4,379.1
4,617.8
4,668.7
3,787.2
Loans held for sale
28.5
68.3
77.0
60.0
Loans:
Commercial
8,457.2
8,560.8
8,400.0
7,951.7
Commercial real estate
8,393.1
8,077.3
7,294.2
7,032.8
Residential mortgage
4,235.8
4,084.2
3,886.1
3,891.3
Consumer
2,141.3
2,143.9
2,156.3
2,164.2
Total loans
23,227.4
22,866.2
21,736.6
21,040.0
Less allowance for loan losses
(188.2)
(185.7)
(188.0)
(186.0)
Total loans, net
23,039.2
22,680.5
21,548.6
20,854.0
Goodwill and other acquisition-related intangible assets
2,133.8
2,140.4
2,153.5
2,160.3
Premises and equipment
314.2
320.1
330.4
334.7
Bank-owned life insurance
338.3
337.2
336.5
335.5
Other assets
682.3
681.5
608.3
622.3
Total assets
$ 31,510.6
$ 31,344.9
$ 30,324.4
$ 28,576.0
Liabilities
Deposits:
Non-interest-bearing
$ 5,105.7
$ 5,116.0
$ 5,084.3
$ 4,746.9
Savings, interest-bearing checking and money market
12,657.5
12,278.6
11,959.8
11,729.0
Time
4,426.4
4,587.2
4,706.4
4,886.7
Total deposits
22,189.6
21,981.8
21,750.5
21,362.6
Borrowings:
Federal Home Loan Bank advances
2,370.6
2,206.4
1,178.3
629.3
Federal funds purchased
704.0
931.0
619.0
479.0
Retail repurchase agreements
539.5
487.7
588.2
415.0
Other borrowings
7.3
1.0
1.0
1.0
Total borrowings
3,621.4
3,626.1
2,386.5
1,524.3
Notes and debentures
639.0
638.9
659.0
160.4
Other liabilities
423.0
420.2
489.6
421.3
Total liabilities
26,873.0
26,667.0
25,285.6
23,468.6
Stockholders' Equity
Common stock
3.9
3.9
3.9
3.9
Additional paid-in capital
5,272.7
5,268.8
5,261.3
5,263.9
Retained earnings
770.5
763.1
756.2
750.1
Treasury stock, at cost
(1,039.0)
(1,009.3)
(712.2)
(656.2)
Accumulated other comprehensive loss
(202.5)
(178.8)
(96.9)
(79.0)
Unallocated common stock of Employee Stock Ownership Plan, at cost
(168.0)
(169.8)
(173.5)
(175.3)
Total stockholders' equity
4,637.6
4,677.9
5,038.8
5,107.4
Total liabilities and stockholders' equity
$ 31,510.6
$ 31,344.9
$ 30,324.4
$ 28,576.0
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
(in millions, except per share data)
2013
2013
2013
2012
2012
Interest and dividend income:
Commercial
$ 86.4
$ 87.2
$ 86.7
$ 90.7
$ 91.3
Commercial real estate
90.0
87.2
85.5
86.0
91.3
Residential mortgage
34.7
34.3
34.5
34.6
37.1
Consumer
18.6
18.7
18.8
19.5
19.8
Total interest on loans
229.7
227.4
225.5
230.8
239.5
Securities
22.0
22.2
22.7
20.7
20.3
Loans held for sale
0.5
0.4
0.4
0.4
0.5
Short-term investments
-
0.1
0.1
0.1
-
Total interest and dividend income
252.2
250.1
248.7
252.0
260.3
Interest expense:
Deposits
20.1
20.5
20.8
21.9
22.1
Borrowings
2.7
2.6
2.3
2.0
1.8
Notes and debentures
5.9
6.1
6.3
3.0
1.6
Total interest expense
28.7
29.2
29.4
26.9
25.5
Net interest income
223.5
220.9
219.3
225.1
234.8
Provision for loan losses
12.1
9.2
12.4
12.0
15.1
Net interest income after provision for loan losses
211.4
211.7
206.9
213.1
219.7
Non-interest income:
Bank service charges
33.3
32.1
30.1
31.4
33.0
Investment management fees
9.2
9.4
9.0
8.9
8.7
Insurance revenue
9.1
7.1
8.3
6.7
9.5
Brokerage commissions
3.3
3.4
3.3
2.9
2.8
Operating lease income
8.7
8.1
8.3
8.5
8.3
Net gains on sales of residential mortgage loans
3.9
4.2
5.7
6.1
3.6
Net gains on sales of acquired loans
-
5.8
-
0.3
-
Merchant services income, net
1.4
1.2
1.2
1.3
1.2
Bank-owned life insurance
1.2
0.9
0.9
1.1
1.3
Other non-interest income
13.9
13.9
16.1
17.1
13.0
Total non-interest income
84.0
86.1
82.9
84.3
81.4
Non-interest expense:
Compensation and benefits
106.9
104.4
108.2
97.4
106.7
Occupancy and equipment
36.7
36.9
37.9
37.9
36.5
Professional and outside service fees
16.1
14.9
13.9
16.8
15.8
Operating lease expense
7.8
7.6
7.5
7.5
6.8
Amortization of other acquisition-related intangible assets
6.5
6.6
6.5
6.7
6.7
Other non-interest expense
38.5
35.4
38.0
41.1
36.4
Total non-interest expense (1)
212.5
205.8
212.0
207.4
208.9
Income before income tax expense
82.9
92.0
77.8
90.0
92.2
Income tax expense
24.4
29.9
25.3
28.8
30.0
Net income
$ 58.5
$ 62.1
$ 52.5
$ 61.2
$ 62.2
Basic and diluted earnings per common share
$ 0.19
$ 0.20
$ 0.16
$ 0.18
$ 0.18
(1) Total non-interest expense includes $3.3 million, $0.4 million, $8.0 million, $2.9 million and $3.2 million of
non-operating expenses for the three months ended Sept. 30, 2013, June 30, 2013, March 31, 2013, Dec. 31, 2012
and Sept. 30, 2012, respectively. See Non-GAAP financial measures and reconciliation to GAAP.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
September 30,
(in millions, except per share data)
2013
2012
Interest and dividend income:
Commercial
$ 260.3
$ 279.4
Commercial real estate
262.7
275.2
Residential mortgage
103.5
109.1
Consumer
56.1
60.5
Total interest on loans
682.6
724.2
Securities
66.9
56.6
Loans held for sale
1.3
1.4
Short-term investments
0.2
0.7
Total interest and dividend income
751.0
782.9
Interest expense:
Deposits
61.4
68.8
Borrowings
7.6
5.1
Notes and debentures
18.3
5.4
Total interest expense
87.3
79.3
Net interest income
663.7
703.6
Provision for loan losses
33.7
37.2
Net interest income after provision for loan losses
630.0
666.4
Non-interest income:
Bank service charges
95.5
95.8
Investment management fees
27.6
26.0
Insurance revenue
24.5
25.1
Brokerage commissions
10.0
9.3
Operating lease income
25.1
22.7
Net gains on sales of residential mortgage loans
13.8
10.0
Net gains on sales of acquired loans
5.8
0.7
Merchant services income, net
3.8
3.6
Bank-owned life insurance
3.0
4.3
Other non-interest income
43.9
32.0
Total non-interest income
253.0
229.5
Non-interest expense:
Compensation and benefits
319.5
321.5
Occupancy and equipment
111.5
104.0
Professional and outside service fees
44.9
48.6
Operating lease expense
22.9
18.8
Amortization of other acquisition-related intangible assets
19.6
20.1
Other non-interest expense
111.9
110.2
Total non-interest expense (1)
630.3
623.2
Income before income tax expense
252.7
272.7
Income tax expense
79.6
88.6
Net income
$ 173.1
$ 184.1
Basic and diluted earnings per common share
$ 0.55
$ 0.54
(1) Total non-interest expense includes $11.7 million and $9.8 million of non-operating expenses
for the nine months ended September 30, 2013 and 2012, respectively. See Non-GAAP
financial measures and reconciliation to GAAP.
People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2013
June 30, 2013
Three months ended
Average
Yield/
Average
Yield/
(dollars in millions)
Balance
Interest
Rate
Balance
Interest
Rate
Assets:
Short-term investments
$ 179.4
$ -
0.21%
$ 152.4
$ 0.1
0.18%
Securities (2)
4,528.9
24.0
2.12
4,556.9
24.3
2.13
Loans:
Commercial (3)
8,470.2
88.7
4.19
8,424.6
89.4
4.25
Commercial real estate
8,148.3
90.0
4.42
7,757.5
87.2
4.50
Residential mortgage
4,156.2
35.2
3.38
4,048.5
34.7
3.43
Consumer
2,140.9
18.6
3.48
2,138.6
18.7
3.49
Total loans
22,915.6
232.5
4.06
22,369.2
230.0
4.11
Total earning assets
27,623.9
$256.5
3.71%
27,078.5
$254.4
3.76%
Other assets
3,592.3
3,720.3
Total assets
$ 31,216.2
$ 30,798.8
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing
$ 5,077.0
$ -
- %
$ 4,960.8
$ -
- %
Savings, interest-bearing checking
and money market
12,482.3
8.2
0.26
12,316.4
8.3
0.27
Time
4,507.1
11.9
1.05
4,558.2
12.2
1.07
Total deposits
22,066.4
20.1
0.36
21,835.4
20.5
0.38
Borrowings:
Federal Home Loan Bank advances
2,387.8
2.2
0.37
1,778.3
2.0
0.44
Federal funds purchased
520.5
0.2
0.17
788.0
0.4
0.19
Retail repurchase agreements
548.7
0.3
0.20
492.3
0.2
0.19
Other borrowings
5.9
-
0.37
1.0
-
1.75
Total borrowings
3,462.9
2.7
0.31
3,059.6
2.6
0.34
Notes and debentures
639.0
5.9
3.69
653.1
6.1
3.75
Total funding liabilities
26,168.3
$ 28.7
0.44%
25,548.1
$ 29.2
0.46%
Other liabilities
425.8
425.8
Total liabilities
26,594.1
25,973.9
Stockholders' equity
4,622.1
4,824.9
Total liabilities and
stockholders' equity
$ 31,216.2
$ 30,798.8
Net interest income/spread (4)
$227.8
3.27%
$225.2
3.30%
Net interest margin
3.30%
3.33%
Operating net interest margin (5)
3.30%
3.33%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are based on amortized cost.
(3) Includes commercial and industrial loans and equipment financing loans.
(4) The fully taxable equivalent adjustment was $4.3 million, $4.3 million and $3.0 million for the three months ended
September 30, 2013, June 30, 2013 and September 30, 2012, respectively.
(5) See Non-GAAP financial measures and reconciliation to GAAP.
People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2012
Three months ended
Average
Yield/
(dollars in millions)
Balance
Interest
Rate
Assets:
Short-term investments
$ 107.7
$ -
0.17%
Securities (2)
3,607.7
21.5
2.38
Loans:
Commercial (3)
7,737.6
93.1
4.81
Commercial real estate
6,952.2
91.3
5.25
Residential mortgage
3,906.0
37.6
3.84
Consumer
2,163.2
19.8
3.67
Total loans
20,759.0
241.8
4.66
Total earning assets
24,474.4
$263.3
4.30%
Other assets
3,759.9
Total assets
$ 28,234.3
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing
$ 4,724.6
$ -
- %
Savings, interest-bearing checking
and money market
11,661.7
9.0
0.31
Time
4,985.9
13.1
1.05
Total deposits
21,372.2
22.1
0.41
Borrowings:
Federal Home Loan Bank advances
390.7
1.3
1.31
Federal funds purchased
295.9
0.2
0.23
Retail repurchase agreements
478.4
0.2
0.23
Other borrowings
11.1
0.1
1.03
Total borrowings
1,176.1
1.8
0.60
Notes and debentures
160.3
1.6
4.07
Total funding liabilities
22,708.6
$ 25.5
0.45%
Other liabilities
364.9
Total liabilities
23,073.5
Stockholders' equity
5,160.8
Total liabilities and
stockholders' equity
$ 28,234.3
Net interest income/spread (4)
$237.8
3.85%
Net interest margin
3.89%
Operating net interest margin (5)
3.82%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are based on amortized cost.
(3) Includes commercial and industrial loans and equipment financing loans.
(4) The fully taxable equivalent adjustment was $4.3 million, $4.3 million and $3.0 million for the three months ended
September 30, 2013, June 30, 2013 and September 30, 2012, respectively.
(5) See Non-GAAP financial measures and reconciliation to GAAP.
People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
September 30, 2013
September 30, 2012
Nine months ended
Average
Yield/
Average
Yield/
(dollars in millions)
Balance
Interest
Rate
Balance
Interest
Rate
Assets:
Short-term investments
$ 159.5
$ 0.2
0.20%
$ 400.7
$ 0.7
0.24%
Securities (2)
4,544.5
72.8
2.13
3,109.4
59.3
2.54
Loans:
Commercial (3)
8,380.5
267.0
4.25
7,535.6
280.7
4.97
Commercial real estate
7,771.2
262.7
4.51
7,027.3
279.4
5.30
Residential mortgage
4,047.2
104.8
3.45
3,830.5
110.5
3.84
Consumer
2,142.5
56.1
3.49
2,180.2
60.5
3.71
Total loans
22,341.4
690.6
4.12
20,573.6
731.1
4.74
Total earning assets
27,045.4
$763.6
3.76%
24,083.7
$791.1
4.38%
Other assets
3,689.4
3,734.5
Total assets
$ 30,734.8
$ 27,818.2
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing
$ 4,973.0
$ -
- %
$ 4,576.5
$ -
- %
Savings, interest-bearing checking and money market
12,281.9
24.5
0.27
11,454.0
30.1
0.35
Time
4,567.0
36.9
1.08
5,105.5
38.7
1.01
Total deposits
21,821.9
61.4
0.37
21,136.0
68.8
0.43
Borrowings:
Federal Home Loan Bank advances
1,840.5
5.9
0.43
351.3
3.7
1.42
Federal funds purchased
637.0
0.9
0.19
104.6
0.2
0.23
Retail repurchase agreements
533.5
0.8
0.20
479.6
1.0
0.27
Other borrowings
2.7
-
0.70
21.6
0.2
0.99
Total borrowings
3,013.7
7.6
0.34
957.1
5.1
0.70
Notes and debentures
650.3
18.3
3.75
160.0
5.4
4.53
Total funding liabilities
25,485.9
$ 87.3
0.46%
22,253.1
$ 79.3
0.48%
Other liabilities
433.1
376.6
Total liabilities
25,919.0
22,629.7
Stockholders' equity
4,815.8
5,188.5
Total liabilities and stockholders' equity
$ 30,734.8
$ 27,818.2
Net interest income/spread (4)
$676.3
3.30%
$711.8
3.90%
Net interest margin
3.33%
3.94%
Operating net interest margin (5)
3.33%
3.89%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are based on amortized cost.
(3) Includes commercial and industrial loans and equipment financing loans.
(4) The fully taxable equivalent adjustment was $12.6 million and $8.2 million for the nine months ended
September 30, 2013 and 2012, respectively.
(5) See Non-GAAP financial measures and reconciliation to GAAP.
People's United Financial, Inc.
Loans acquired in connection with business combinations are initially recorded at fair value, determined based
upon an estimate of expected cash flows, including a reduction for estimated credit losses, and without carryover
of the respective portfolio's historical allowance for loan losses. A decrease in expected cash flows in subsequent
periods may indicate that a loan is impaired, which would require the establishment of an allowance for loan
losses. As such, selected asset quality metrics have been highlighted to distinguish between the 'originated'
portfolio and the 'acquired' portfolio.
NON-PERFORMING ASSETS
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
(dollars in millions)
2013
2013
2013
2012
2012
Originated non-performing loans:
Commercial Banking:
Commercial real estate
$ 69.8
$ 70.2
$ 86.5
$ 84.4
$ 88.5
Commercial and industrial
66.7
68.6
50.9
54.8
64.6
Equipment financing
21.2
27.8
24.8
27.2
37.4
Total
157.7
166.6
162.2
166.4
190.5
Retail:
Residential mortgage
59.5
59.6
66.8
65.0
60.6
Home equity
19.9
21.0
22.2
21.0
14.6
Other consumer
0.1
0.1
0.2
0.3
0.3
Total
79.5
80.7
89.2
86.3
75.5
Total originated non-performing loans (1)
237.2
247.3
251.4
252.7
266.0
REO:
Residential
14.6
16.0
16.9
17.2
7.2
Commercial
13.3
10.9
9.6
11.4
12.6
Total REO
27.9
26.9
26.5
28.6
19.8
Repossessed assets
6.1
6.3
7.2
8.3
8.2
Total non-performing assets
$ 271.2
$ 280.5
$ 285.1
$ 289.6
$ 294.0
Acquired non-performing loans (contractual amount) (2)
$ 154.2
$ 159.0
$ 180.7
$ 181.6
$ 202.0
Originated non-performing loans as a percentage
of originated loans
1.10%
1.18%
1.25%
1.30%
1.45%
Non-performing assets as a percentage of:
Originated loans, REO and repossessed assets
1.26
1.33
1.42
1.48
1.59
Tangible stockholders' equity and originated
allowance for loan losses
10.12
10.33
9.78
9.45
9.41
(1) Reported net of government guarantees totaling $19.8 million at Sept. 30, 2013, $20.4 million at June 30, 2013,
$9.9 million at March 31, 2013, $9.7 million at Dec. 31, 2012 and $14.1 million at Sept. 30, 2012.
(2) Represents acquired loans that meet People's United Financial's definition of a non-performing loan but are not,
under the accounting model for acquired loans, subject to classification as non-accrual in the same manner as
originated loans. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on
such loans, when incurred, are first applied against the non-accretable difference established in purchase accounting
and then to any allowance for loan losses recognized subsequent to acquisition.
People's United Financial, Inc.
PROVISION AND ALLOWANCE FOR LOAN LOSSES
Three Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
(dollars in millions)
2013
2013
2013
2012
2012
Allowance for loan losses on originated loans:
Balance at beginning of period
$ 177.5
$ 177.5
$ 177.5
$ 175.5
$ 175.5
Charge-offs
(10.7)
(12.0)
(11.3)
(11.6)
(11.1)
Recoveries
1.2
1.9
1.5
1.6
1.7
Net loan charge-offs
(9.5)
(10.1)
(9.8)
(10.0)
(9.4)
Provision for loan losses
9.5
10.1
9.8
12.0
9.4
Balance at end of period
177.5
177.5
177.5
177.5
175.5
Allowance for loan losses on acquired loans:
Balance at beginning of period
8.2
9.8
10.5
10.5
4.8
Charge-offs
(0.1)
(0.7)
(3.3)
-
-
Provision for loan losses
2.6
(0.9)
2.6
-
5.7
Balance at end of period
10.7
8.2
9.8
10.5
10.5
Total allowance for loan losses
$ 188.2
$ 185.7
$ 187.3
$ 188.0
$ 186.0
Commercial banking originated allowance
for loan losses as a percentage of
originated commercial banking loans
1.02%
1.05%
1.11%
1.13%
1.22%
Retail originated allowance for loan losses
as a percentage of originated retail loans
0.31
0.31
0.32
0.36
0.35
Total originated allowance for loan losses
as a percentage of:
Originated loans
0.82
0.85
0.88
0.91
0.95
Originated non-performing loans
74.8
71.8
70.6
70.3
66.0
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
(dollars in millions)
2013
2013
2013
2012
2012
Commercial Banking:
Commercial real estate
$ (0.1)
$ 4.7
$ 6.1
$ 2.5
$ 3.5
Commercial and industrial
6.4
1.5
3.7
2.7
2.6
Equipment financing
0.9
0.7
(0.4)
1.0
1.1
Total
7.2
6.9
9.4
6.2
7.2
Retail:
Residential mortgage
0.4
2.3
1.9
1.7
1.3
Home equity
1.6
1.4
1.5
1.7
0.6
Other consumer
0.4
0.2
0.3
0.4
0.3
Total
2.4
3.9
3.7
3.8
2.2
Total
$ 9.6
$ 10.8
$ 13.1
$ 10.0
$ 9.4
Net loan charge-offs to
average total loans (annualized)
0.17%
0.19%
0.24%
0.19%
0.18%
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP
In addition to evaluating People's United Financial's results of operations in accordance with U.S. generally
accepted accounting principles ("GAAP"), management routinely supplements their evaluation with an analysis of
certain non-GAAP financial measures, such as the efficiency and tangible equity ratios, tangible book value per
share and operating earnings metrics. Management believes these non-GAAP financial measures provide information
useful to investors in understanding People's United Financial's underlying operating performance and trends, and
facilitates comparisons with the performance of other banks and thrifts. Further, the efficiency ratio and operating
earnings metrics are used by management in its assessment of financial performance, including non-interest expense
control, while the tangible equity ratio and tangible book value per share are used to analyze the relative strength
of People's United Financial's capital position.
The efficiency ratio, which represents an approximate measure of the cost required by People's United Financial
to generate a dollar of revenue, is the ratio of (i) total non-interest expense (excluding goodwill impairment
charges, amortization of other acquisition-related intangible assets, losses on real estate assets and non-recurring
expenses) (the numerator) to (ii) net interest income on a fully taxable equivalent ("FTE") basis plus total
non-interest income (including the FTE adjustment on bank-owned life insurance ("BOLI") income, and excluding
gains and losses on sales of assets other than residential mortgage loans and acquired loans, and non-recurring income)
(the denominator). People's United Financial generally considers an item of income or expense to be non-recurring if
it is not similar to an item of income or expense of a type incurred within the last two years and is not similar to an
item of income or expense of a type reasonably expected to be incurred within the following two years.
Operating earnings exclude from net income those items that management considers to be of such a non-recurring
or infrequent nature that, by excluding such items (net of income taxes), People's United Financial's results can be
measured and assessed on a more consistent basis from period to period. Items excluded from operating earnings,
which include, but are not limited to: (i) merger-related expenses, including acquisition integration and other costs;
(ii) charges related to executive-level management separation costs; (iii) severance-related costs; and
(iv) writedowns of banking house assets, are generally also excluded when calculating the efficiency ratio.
Operating earnings per share is derived by determining the per share impact of the respective adjustments to
arrive at operating earnings and adding (subtracting) such amounts to (from) GAAP earnings per share. Operating
return on average assets is calculated by dividing operating earnings (annualized) by average total assets. Operating
return on average tangible stockholders' equity is calculated by dividing operating earnings (annualized) by average
tangible stockholders' equity. The operating dividend payout ratio is calculated by dividing dividends paid by
operating earnings for the respective period.
Operating net interest margin excludes from the net interest margin those items that management considers to
be of such a discrete nature that, by excluding such items, People's United Financial's net interest margin can be
measured and assessed on a more consistent basis from period to period. Excluded from operating net interest
margin is cost recovery income on acquired loans. Operating net interest margin is calculated by dividing
operating net interest income (annualized) by average total earning assets.
The tangible equity ratio is the ratio of (i) tangible stockholders' equity (total stockholders' equity less goodwill
and other acquisition-related intangible assets) (the numerator) to (ii) tangible assets (total assets less goodwill and
other acquisition-related intangible assets) (the denominator). Tangible book value per share is calculated by
dividing tangible stockholders' equity by common shares (total common shares issued, less common shares
classified as treasury shares and unallocated Employee Stock Ownership Plan ("ESOP") common shares).
In light of diversity in presentation among financial institutions, the methodologies used by People's United
Financial for determining the non-GAAP financial measures discussed above may differ from those used by other
financial institutions.
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued
OPERATING NON-INTEREST EXPENSE AND EFFICIENCY RATIO
Three Months Ended
Nine Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
Sept. 30,
Sept. 30,
(dollars in millions)
2013
2013
2013
2012
2012
2013
2012
Total non-interest expense
$ 212.5
$ 205.8
$ 212.0
$ 207.4
$ 208.9
$ 630.3
$ 623.2
Adjustments to arrive at operating
non-interest expense:
Writedowns of banking house assets
(2.8)
-
(6.2)
-
-
(9.0)
-
Severance-related costs
(0.5)
(0.4)
(1.5)
(2.9)
(0.9)
(2.4)
(4.4)
Acquisition integration and other costs
-
-
(0.3)
-
(2.3)
(0.3)
(5.4)
Total
(3.3)
(0.4)
(8.0)
(2.9)
(3.2)
(11.7)
(9.8)
Operating non-interest expense
209.2
205.4
204.0
204.5
205.7
618.6
613.4
Amortization of other acquisition-related
intangible assets
(6.5)
(6.6)
(6.5)
(6.7)
(6.7)
(19.6)
(20.1)
Other (1)
(4.0)
(3.4)
(1.5)
(0.6)
(2.7)
(8.9)
(7.2)
Total
$ 198.7
$ 195.4
$ 196.0
$ 197.2
$ 196.3
$ 590.1
$ 586.1
Net interest income (FTE basis)
$ 227.8
$ 225.2
$ 223.3
$ 228.6
$ 237.8
$ 676.3
$ 711.8
Total non-interest income
84.0
86.1
82.9
84.3
81.4
253.0
229.5
Total revenues
311.8
311.3
306.2
312.9
319.2
929.3
941.3
Adjustments:
BOLI FTE adjustment
0.6
0.4
0.4
0.6
0.7
1.4
2.2
Other (2)
-
(0.2)
(0.7)
(0.7)
-
(0.9)
-
Total
$ 312.4
$ 311.5
$ 305.9
$ 312.8
$ 319.9
$ 929.8
$ 943.5
Efficiency ratio
63.6%
62.7%
64.1%
63.0%
61.4%
63.5%
62.1%
(1) Items classified as "other" and deducted from non-interest expense for purposes of calculating the efficiency ratio include,
as applicable, certain franchise taxes, real estate owned expenses, contract termination costs and non-recurring expenses.
(2) Items classified as "other" and added to (deducted from) total revenues for purposes of calculating the efficiency ratio include,
as applicable, asset write-offs and gains associated with the sale of branch locations.
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued
OPERATING EARNINGS
Three Months Ended
Nine Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
Sept. 30,
Sept. 30,
(dollars in millions, except per share data)
2013
2013
2013
2012
2012
2013
2012
Net income, as reported
$ 58.5
$ 62.1
$ 52.5
$ 61.2
$ 62.2
$ 173.1
$ 184.1
Adjustments to arrive at operating earnings:
Writedowns of banking house assets
2.8
-
6.2
-
-
9.0
-
Severance-related costs
0.5
0.4
1.5
2.9
0.9
2.4
4.4
Acquisition integration and other costs
-
-
0.3
-
2.3
0.3
5.4
Total pre-tax adjustments
3.3
0.4
8.0
2.9
3.2
11.7
9.8
Tax effect
(1.0)
(0.1)
(2.6)
(0.9)
(1.0)
(3.7)
(3.2)
Total adjustments, net of tax
2.3
0.3
5.4
2.0
2.2
8.0
6.6
Operating earnings
$ 60.8
$ 62.4
$ 57.9
$ 63.2
$ 64.4
$ 181.1
$ 190.7
Earnings per share, as reported
$ 0.19
$ 0.20
$ 0.16
$ 0.18
$ 0.18
$ 0.55
$ 0.54
Adjustments to arrive at operating
earnings per share:
Writedowns of banking house assets
0.01
-
0.02
-
-
0.03
-
Severance-related costs
-
-
-
0.01
-
-
0.01
Acquisition integration and other costs
-
-
-
-
0.01
-
0.02
Total adjustments per share
0.01
-
0.02
0.01
0.01
0.03
0.03
Operating earnings per share
$ 0.20
$ 0.20
$ 0.18
$ 0.19
$ 0.19
$ 0.58
$ 0.57
Average total assets
$ 31,216
$ 30,799
$ 30,178
$ 28,991
$ 28,234
$ 30,735
$ 27,818
Operating return on
average assets (annualized)
0.78%
0.81%
0.77%
0.87%
0.91%
0.79%
0.91%
OPERATING NET INTEREST MARGIN
Three Months Ended
Nine Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
Sept. 30,
Sept. 30,
(dollars in millions)
2013
2013
2013
2012
2012
2013
2012
Net interest income (FTE basis)
$ 227.8
$ 225.2
$ 223.3
$ 228.6
$ 237.8
$ 676.3
$ 711.8
Adjustments to arrive at operating
net interest income:
Cost recovery income
-
-
-
-
(4.1)
-
(8.8)
Total adjustments
-
-
-
-
(4.1)
-
(8.8)
Operating net interest income
$ 227.8
$ 225.2
$ 223.3
$ 228.6
$ 233.7
$ 676.3
$ 703.0
Net interest margin, as reported (1)
3.30%
3.33%
3.38%
3.63%
3.89%
3.33%
3.94%
Adjustments to arrive at operating
net interest margin (1):
Cost recovery income
-
-
-
-
(0.07)
-
(0.05)
Total adjustments
-
-
-
-
(0.07)
-
(0.05)
Operating net interest margin (1)
3.30%
3.33%
3.38%
3.63%
3.82%
3.33%
3.89%
Average total earning assets
$ 27,624
$ 27,079
$ 26,421
$ 25,206
$ 24,474
$ 27,045
$ 24,084
(1) Annualized.
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued
OPERATING RETURN ON AVERAGE TANGIBLE STOCKHOLDERS' EQUITY
Three Months Ended
Nine Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
Sept. 30,
Sept. 30,
(dollars in millions)
2013
2013
2013
2012
2012
2013
2012
Operating earnings
$ 60.8
$ 62.4
$ 57.9
$ 63.2
$ 64.4
$ 181.1
$ 190.7
Average stockholders' equity
$ 4,622
$ 4,825
$ 5,005
$ 5,107
$ 5,161
$ 4,816
$ 5,188
Less: Average goodwill and average other
acquisition-related intangible assets
2,137
2,144
2,151
2,157
2,164
2,144
2,167
Average tangible stockholders' equity
$ 2,485
$ 2,681
$ 2,854
$ 2,950
$ 2,997
$ 2,672
$ 3,021
Operating return on average tangible
stockholders' equity (annualized)
9.8%
9.3%
8.1%
8.6%
8.6%
9.0%
8.4%
OPERATING DIVIDEND PAYOUT RATIO
Three Months Ended
Nine Months Ended
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
Sept. 30,
Sept. 30,
(dollars in millions)
2013
2013
2013
2012
2012
2013
2012
Dividends paid
$ 50.3
$ 51.9
$ 52.8
$ 53.6
$ 54.3
$ 155.0
$ 164.3
Operating earnings
$ 60.8
$ 62.4
$ 57.9
$ 63.2
$ 64.4
$ 181.1
$ 190.7
Operating dividend payout ratio
82.7%
83.2%
91.2%
84.8%
84.3%
85.6%
86.2%
TANGIBLE EQUITY RATIO
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
(dollars in millions)
2013
2013
2013
2012
2012
Total stockholders' equity
$ 4,638
$ 4,678
$ 4,886
$ 5,039
$ 5,107
Less: Goodwill and other
acquisition-related intangible assets
2,134
2,140
2,147
2,154
2,160
Tangible stockholders' equity
$ 2,504
$ 2,538
$ 2,739
$ 2,885
$ 2,947
Total assets
$ 31,511
$ 31,345
$ 30,598
$ 30,324
$ 28,576
Less: Goodwill and other
acquisition-related intangible assets
2,134
2,140
2,147
2,154
2,160
Tangible assets
$ 29,377
$ 29,205
$ 28,451
$ 28,170
$ 26,416
Tangible equity ratio
8.5%
8.7%
9.6%
10.2%
11.2%
TANGIBLE BOOK VALUE PER SHARE
Sept. 30,
June 30,
March 31,
Dec. 31,
Sept. 30,
(in millions, except per share data)
2013
2013
2013
2012
2012
Tangible stockholders' equity
$ 2,504
$ 2,538
$ 2,739
$ 2,885
$ 2,947
Common shares issued
396.44
396.32
396.24
395.81
395.88
Less: Shares classified as treasury shares
80.62
78.54
67.31
56.18
51.48
Unallocated ESOP shares
8.10
8.19
8.28
8.36
8.45
Common shares
307.72
309.59
320.65
331.27
335.95
Tangible book value per share
$ 8.14
$ 8.20
$ 8.54
$ 8.71
$ 8.77
SOURCE BRIDGEPORT, Conn., Oct. 17, 2013 /PRNewswire/ -- People's United Financial, Inc www.peoples.com