People's United Financial Reports Fourth Quarter Net Income of $207.7 Million, or $0.49 per Common Share
01/21/2021 - 04:29 PM
BRIDGEPORT, Conn. , Jan. 21, 2021 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported results for the fourth quarter and full year 2020. These results along with comparison periods are summarized below:
($ in millions, except per common share data)
Three Months Ended
Twelve Months Ended
Dec. 31, 2020
Sep. 30, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Net income
$ 207.7
$ 144.6
$ 137.5
$ 572.6
$ 520.4
Net income available
204.2
141.1
134.0
558.5
506.3
to common shareholders
Per common share
0.49
0.34
0.31
1.32
1.27
Operating earnings1
147.7
144.7
158.8
534.6
552.1
Per common share
0.35
0.34
0.37
1.27
1.39
Net interest income
$ 382.8
$ 391.4
$ 382.7
$ 1,575.8
$ 1,412.3
Net interest margin
2.84%
2.97%
3.14%
2.99%
3.14%
Non-interest income
178.2
101.1
124.2
492.7
431.1
Operating non-interest income1
102.3
101.1
116.6
416.8
423.5
Non-interest expense
$ 293.4
$ 293.6
$ 325.7
$ 1,211.1
$ 1,162.7
Operating non-interest expense1
288.5
289.0
286.6
1,165.2
1,097.1
Efficiency ratio
55.5%
53.8%
53.7%
54.2%
55.8%
Average balances
Loans
$ 44,061
$ 44,853
$ 42,006
$ 44,382
$ 38,419
Deposits
50,674
49,542
42,195
48,217
39,143
Period-end balances
Loans
43,869
45,231
43,596
Deposits
52,138
49,637
43,590
1 See Non-GAAP Financial Measures and Reconciliations to GAAP.
"We are pleased with our performance in 2020, especially in light of the uncertain economic environment caused by the pandemic," said Jack Barnes , Chairman and Chief Executive Officer. "Full year financial and operating results were strong and reflect the resilience of People's United, its employees and customers. Pre-provision net revenue of $827 million $271 million $1.6 billion
Barnes continued, "As consumer preferences evolve to more digitally-driven experiences, we have continually enhanced our technology capabilities to deliver value, provide convenience and create efficiencies. As a result, customers are increasingly utilizing our online and mobile platforms for their banking needs. Given these accelerating digital banking trends and shifts in retail shopping behavior, we announced today the decision not to renew our existing in-store branch contracts with Stop & Shop in Connecticut and New York upon expiration in 2022. This decision enables us to further optimize our branch network, while providing the same level of personalized service across each of our channels."
"We concluded the year with a solid financial performance in the fourth quarter," stated David Rosato , Senior Executive Vice President and Chief Financial Officer. "Operating earnings of $147.7 million $1.4 billion September 30 , while deposits grew $2.5 billion $715 million $289 million $107 million $1.8 billion
As of and for the Three Months Ended
Dec. 31, 2020
Sep. 30, 2020
Dec. 31, 2019
Asset Quality
Net loan charge-offs
0.12%
0.15%
0.06%
to average total loans
Non-performing loans
0.75%
0.68%
0.51%
as a percentage of total loans1
Returns
Return on average assets2
1.33%
0.94%
0.98%
Return on average tangible common equity2
18.4%
13.1%
12.8%
Capital Ratios
People's United Financial, Inc.
Tangible common equity / tangible assets
7.5%
7.5%
8.0%
Tier 1 leverage
8.4%
8.2%
9.1%
Common equity tier 1
10.5%
9.9%
10.2%
Tier 1 risk-based
11.0%
10.5%
10.7%
Total risk-based
12.4%
11.8%
12.0%
People's United Bank, N.A.
Tier 1 leverage
8.7%
8.7%
9.3%
Common equity tier 1
11.5%
11.0%
10.9%
Tier 1 risk-based
11.5%
11.0%
10.9%
Total risk-based
12.8%
12.3%
12.1%
1 Ratios for periods prior to January 1, 2020 have been restated to reflect the total loan portfolio (originated & acquired)
2 See Non-GAAP Financial Measures and Reconciliation to GAAP
The Board of Directors declared a $0.18 February 15, 2021 to shareholders of record on February 1, 2021 . Based on the closing stock price on January 20, 2021 , the dividend yield on People's United Financial common stock is 5.0 percent.
The Company is currently in the process of performing its annual goodwill impairment assessment. Additional time is necessary to complete the analysis given the complexities brought about by the macroeconomic effects of the Covid-19 pandemic, particularly the current and projected low interest rate environment and a decline in bank stock valuations last fall, including on the date of the Company's annual assessment (October 1st ). Any potential goodwill impairment charge could be material to reported earnings, but would represent a non-cash charge and have no effect on the Company's cash balances, liquidity or tangible equity. In addition, because goodwill and other intangible assets are not included in the calculation of regulatory capital, the Company's well-capitalized regulatory capital ratios would not be affected by this potential non-cash expense. The analysis will be completed prior to filing the Annual Report on Form 10-K with the Securities and Exchange Commission.
People's United Bank , N.A. is a subsidiary of People's United Financial, Inc., a diversified, community-focused financial services company headquartered in the Northeast with over $63 billion Connecticut , New York , Massachusetts , Vermont , New Hampshire and Maine , as well as wealth management solutions. The company also provides specialized commercial services to customers nationwide.
4Q 2020 Financial Highlights
Summary
Net income totaled $207.7 million $0.49 Net income available to common shareholders totaled $204.2 million Operating earnings totaled $147.7 million $0.35 Net interest income totaled $382.8 million $391.4 million Net interest margin decreased 13 basis points from 3Q20 to 2.84% reflecting: Excess liquidity resulting from deposits at the Federal Reserve Bank (decrease of nine basis points). Lower yields on the loan and securities portfolios (decrease of nine basis points). Lower rates on deposits (increase of five basis points). Provision for credit losses on loans totaled $14.7 million Allowance for credit losses on loans increased $1.3 million Net loan charge-offs totaled $13.4 million Net loan charge-off ratio of 0.12% in 4Q20. Non-interest income totaled $178.2 million $101.1 million Commercial banking lending fees increased $2.8 million Customer interest rate swap income increased $1.0 million Insurance revenue decreased $5.6 million Included in non-interest income in 4Q20 is a $75.9 million At December 31, 2020 , assets under discretionary management totaled $9.5 billion Non-interest expense totaled $293.4 million $293.6 million Operating non-interest expense totaled $288.5 million $289.0 million Compensation and benefits expense, excluding $0.3 million $0.4 million Occupancy and equipment expense, excluding $0.3 million $0.9 million $2.4 million Professional and outside services expense, excluding $0.8 million $1.4 million $1.4 million Regulatory assessment expense decreased $1.5 million Other non-interest expense includes merger-related expenses of $3.8 million $2.0 million The efficiency ratio was 55.5% for 4Q20 compared to 53.8% for 3Q20 and 53.7% for 4Q19 (See Non-GAAP Financial Measures and Reconciliation to GAAP). The effective income tax rate was 17.9% for 4Q20 and 18.4% for the full-year of 2020, compared to 20.2% for the full-year of 2019. The 4Q20 and full-year 2020 effective tax rates reflect a $7.1 million Commercial Banking
Commercial loans totaled $33.2 billion December 31, 2020 , a $647 million September 30, 2020 . Paycheck Protection Plan loans totaled $2.3 billion December 31, 2020 , a $289 million September 30, 2020 . The mortgage warehouse portfolio increased $161 million The New York multifamily portfolio decreased $47 million The equipment financing portfolio decreased $42 million Average commercial loans totaled $33.1 billion $86 million Paycheck Protection Plan loans averaged $2.5 billion $69 million The average mortgage warehouse portfolio increased $455 million The average New York multifamily portfolio decreased $53 million The average equipment financing portfolio decreased $9 million Commercial deposits totaled $22.9 billion December 31, 2020 compared to $21.6 billion September 30, 2020 . The ratio of non-accrual commercial loans to total commercial loans was 0.74% at December 31, 2020 compared to 0.65% at September 30, 2020 . Non-performing commercial assets totaled $255.2 million December 31, 2020 compared to $234.1 million September 30, 2020 . For the commercial loan portfolio, the allowance for credit losses as a percentage of commercial loans was 0.91% at December 31, 2020 compared to 0.86% at September 30, 2020 . The commercial allowance for credit losses represented 123% of non-accrual commercial loans at December 31, 2020 compared to 132% at September 30, 2020 . Retail Banking
Residential mortgage loans totaled $8.5 billion December 31, 2020 , a $577 million September 30, 2020 . Average residential mortgage loans totaled $8.8 billion $587 million Home equity loans totaled $2.0 billion December 31, 2020 , a $128 million September 30, 2020 . Average home equity loans totaled $2.1 billion $110 million Retail deposits totaled $29.2 billion December 31, 2020 compared to $28.0 billion September 30, 2020 . The ratio of non-accrual residential mortgage loans to residential mortgage loans was 0.73% at December 31, 2020 compared to 0.69% at September 30, 2020 . The ratio of non-accrual home equity loans to home equity loans was 1.03% at December 31, 2020 compared to 1.04% at September 30, 2020 . For the retail loan portfolio, the allowance for credit losses as a percentage of retail loans was 1.14% at December 31, 2020 compared to 1.17% at September 30, 2020 . The retail allowance for credit losses represented 146% of non-accrual retail loans at December 31, 2020 compared to 155% at September 30, 2020 . Conference Call
On January 21, 2021 , 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, international, 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; (10) changes in regulation resulting from or relating to financial reform legislation; (11) the outcome of the ongoing goodwill impairment analysis; and (12) the COVID-19 pandemic and its effect on the economic and business environment in which we operate. 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
As of and for the Three Months Ended
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
(dollars in millions, except per common share data)
2020
2020
2020
2020
2019
Earnings Data:
Net interest income (fully taxable equivalent)
$
390.2
$
398.7
$
413.0
$
403.7
$
390.3
Net interest income
382.8
391.4
405.6
396.0
382.7
Provision for credit losses (1)
14.7
26.8
80.8
33.5
7.3
Non-interest income (2)
178.2
101.1
89.6
123.8
124.2
Non-interest expense (2)
293.4
293.6
304.0
320.1
325.7
Income before income tax expense
252.9
172.1
110.4
166.2
173.9
Net income
207.7
144.6
89.9
130.4
137.5
Net income available to common shareholders (2)
204.2
141.1
86.4
126.9
134.0
Selected Statistical Data:
Net interest margin (3)
2.84
%
2.97
%
3.05
%
3.12
%
3.14
Return on average assets (2), (3)
1.33
0.94
0.58
0.89
0.98
Return on average common equity (3)
10.7
7.5
4.6
6.7
7.2
Return on average tangible common equity (2), (3)
18.4
13.1
8.1
11.8
12.8
Efficiency ratio (2)
55.5
53.8
53.5
54.0
53.7
Common Share Data:
Earnings per common share:
Basic
$
0.49
$
0.34
$
0.21
$
0.30
$
0.31
Diluted (2)
0.49
0.34
0.21
0.30
0.31
Dividends paid per common share
0.1800
0.1800
0.1800
0.1775
0.1775
Common dividend payout ratio (2)
37.1
%
53.6
%
87.4
%
60.9
%
52.2
Book value per common share
$
18.40
$
18.11
$
17.95
$
17.87
$
17.60
Tangible book value per common share (2)
10.77
10.37
10.18
10.07
10.12
Stock price:
High
13.58
12.36
13.99
17.00
17.22
Low
9.98
9.74
9.37
10.40
14.73
Close
12.93
10.31
11.57
11.05
16.90
Common shares outstanding (in millions) (2)
424.68
424.67
424.59
424.47
443.66
Weighted average diluted common shares (in millions)
420.39
420.29
420.15
429.77
424.98
(1) Provision for credit losses in 2020 reflects the application of the CECL standard and the impact of COVID-19.
(2) See Non-GAAP Financial Measures and Reconciliation to GAAP.
(3) Annualized.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS
As of and for the
Twelve Months Ended
December 31,
(dollars in millions, except per common share data)
2020
2019
Earnings Data:
Net interest income (fully taxable equivalent)
$
1,605.6
$
1,441.7
Net interest income
1,575.8
1,412.3
Provision for credit losses (1)
155.8
28.3
Non-interest income (2)
492.7
431.1
Non-interest expense (2)
1,211.1
1,162.5
Income before income tax expense
701.6
652.4
Net income
572.6
520.4
Net income available to common shareholders (2)
558.5
506.3
Selected Statistical Data:
Net interest margin
2.99
%
3.14
%
Return on average assets (2)
0.94
1.01
Return on average common equity
7.4
7.4
Return on average tangible common equity (2)
12.9
13.4
Efficiency ratio (2)
54.2
55.8
Common Share Data:
Earnings per common share:
Basic
$
1.33
$
1.28
Diluted (2)
1.32
1.27
Dividends paid per common share
0.7175
0.7075
Common dividend payout ratio (2)
54.5
%
54.3
%
Book value per common share
$
18.40
$
17.60
Tangible book value per common share (2)
10.77
10.12
Stock price:
High
17.00
18.03
Low
9.37
13.81
Close
12.93
16.90
Common shares outstanding (in millions) (2)
424.68
443.66
Weighted average diluted common shares (in millions)
422.55
397.15
(1) Provision for credit losses in 2020 reflects the application of the CECL standard and the impact of COVID-19.
(2) See Non-GAAP Financial Measures and Reconciliation to GAAP.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
As of and for the Three Months Ended
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
(dollars in millions)
2020
2020
2020
2020
2019
Financial Condition Data:
Total assets
$
63,445
$
60,871
$
61,510
$
60,433
$
58,590
Loans
43,444
45,231
45,452
44,284
43,596
Securities
9,191
8,270
8,233
8,552
7,790
Short-term investments
3,766
439
987
744
317
Allowance for credit losses on loans (1)
425
424
414
342
247
Goodwill and other acquisition-related intangible assets
3,199
3,244
3,254
3,264
3,275
Deposits
52,138
49,637
49,934
44,741
43,590
Borrowings
1,148
1,237
1,782
5,911
5,155
Notes and debentures
1,010
1,012
1,015
1,013
993
Stockholders' equity
7,956
7,831
7,763
7,726
7,947
Total risk-weighted assets (2):
People's United Financial, Inc.
45,056
45,756
45,657
46,408
45,208
People's United Bank, N.A.
44,996
45,685
45,615
46,397
45,174
Non-accrual loans
329
306
296
240
224
Net loan charge-offs
13.4
17.3
8.5
10.6
6.7
Average Balances:
Loans
$
44,061
$
44,853
$
45,153
$
43,460
$
42,006
Securities (3)
8,390
7,922
8,240
8,022
7,372
Short-term investments
2,582
842
774
289
294
Total earning assets
55,034
53,617
54,168
51,772
49,673
Total assets
62,396
61,293
61,841
58,604
56,130
Deposits
50,674
49,542
48,447
44,163
42,195
Borrowings
1,233
1,283
2,911
4,353
4,146
Notes and debentures
1,011
1,014
1,014
1,000
974
Total funding liabilities
52,918
51,839
52,372
49,515
47,314
Stockholders' equity
7,884
7,801
7,757
7,804
7,654
Ratios:
Net loan charge-offs to average total loans (annualized)
0.12
%
0.15
%
0.08
%
0.10
%
0.06
%
Non-performing assets to total loans, real estate owned
and repossessed assets
0.78
0.71
0.69
0.59
0.57
Allowance for credit losses on loans to (1):
Total loans
0.97
0.94
0.91
0.77
0.57
Non-accrual loans
129.1
138.4
139.8
142.2
110.0
Average stockholders' equity to average total assets
12.6
12.7
12.5
13.3
13.6
Stockholders' equity to total assets
12.5
12.9
12.6
12.8
13.6
Tangible common equity to tangible assets (4)
7.5
7.5
7.3
7.4
8.0
Total risk-based capital (2):
People's United Financial, Inc.
12.4
11.8
11.8
11.3
12.0
People's United Bank, N.A.
12.8
12.3
12.3
12.0
12.1
(1) Allowance for credit losses on loans and asset quality ratios for 2020 reflect the initial adoption and application of the
CECL standard.
(2) December 31, 2020 amounts and ratios are preliminary.
(3) Average balances for securities are based on amortized cost.
(4) See Non-GAAP Financial Measures and Reconciliation to GAAP.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION (1)
Dec. 31,
Sept. 30,
June 30,
Dec. 31,
(in millions)
2020
2020
2020
2019
Assets
Cash and due from banks
$ 477.3
$ 616.8
$ 491.9
$ 484.2
Short-term investments
3,766.0
438.6
987.4
316.8
Securities:
Trading debt securities, at fair value
-
-
-
7.1
Equity securities, at fair value
5.3
5.6
5.8
8.2
Debt securities available-for-sale, at fair value
4,925.5
4,080.7
4,080.3
3,564.3
Debt securities held-to-maturity, at amortized cost
3,993.8
3,916.5
3,848.6
3,869.2
Federal Home Loan Bank and Federal Reserve Bank stock, at cost
266.6
267.1
298.3
341.1
Total securities
9,191.2
8,269.9
8,233.0
7,789.9
Loans held-for-sale
26.5
21.4
12.2
511.3
Loans:
Commercial and industrial (2)
14,982.3
15,295.0
14,593.9
11,041.6
Commercial real estate (2)
13,336.9
13,713.3
13,999.5
14,762.3
Equipment financing
4,930.0
4,887.6
4,880.1
4,910.4
Total Commercial Portfolio
33,249.2
33,895.9
33,473.5
30,714.3
Residential mortgage
8,518.9
9,095.6
9,623.7
10,318.1
Home equity and other consumer
2,101.4
2,239.1
2,354.3
2,563.7
Total Retail Portfolio
10,620.3
11,334.7
11,978.0
12,881.8
Total loans
43,869.5
45,230.6
45,451.5
43,596.1
Less allowance for credit losses on loans
(425.1)
(423.8)
(414.0)
(246.6)
Total loans, net
43,444.4
44,806.8
45,037.5
43,349.5
Goodwill and other acquisition-related intangible assets
3,198.9
3,243.5
3,253.7
3,274.6
Bank-owned life insurance
711.6
710.5
708.1
705.0
Premises and equipment, net
276.7
281.3
285.7
305.5
Other assets
2,352.2
2,482.4
2,500.2
1,853.0
Total assets
$ 63,444.8
$ 60,871.2
$ 61,509.7
$ 58,589.8
Liabilities
Deposits:
Non-interest-bearing
$ 15,881.7
$ 14,101.9
$ 13,656.9
$ 9,803.7
Savings
6,029.7
5,846.3
5,759.4
4,987.7
Interest-bearing checking and money market
24,567.5
23,361.8
22,943.6
19,592.6
Time
5,658.8
6,326.5
7,574.4
9,205.5
Total deposits
52,137.7
49,636.5
49,934.3
43,589.5
Borrowings:
Federal Home Loan Bank advances
569.7
579.8
1,289.7
3,125.4
Customer repurchase agreements
452.9
432.5
342.1
409.1
Federal funds purchased
125.0
225.0
150.0
1,620.0
Total borrowings
1,147.6
1,237.3
1,781.8
5,154.5
Notes and debentures
1,009.6
1,012.0
1,014.5
993.1
Other liabilities
1,194.1
1,153.9
1,016.1
905.5
Total liabilities
55,489.0
53,039.7
53,746.7
50,642.6
Stockholders' Equity
Preferred stock
244.1
244.1
244.1
244.1
Common stock
5.3
5.3
5.3
5.3
Additional paid-in capital
7,663.6
7,657.3
7,651.2
7,639.4
Retained earnings
1,716.6
1,589.1
1,524.6
1,512.8
Accumulated other comprehensive loss
(89.2)
(77.9)
(73.9)
(166.9)
Unallocated common stock of Employee Stock Ownership Plan, at cost
(115.6)
(117.4)
(119.3)
(122.9)
Treasury stock, at cost
(1,469.0)
(1,469.0)
(1,469.0)
(1,164.6)
Total stockholders' equity
7,955.8
7,831.5
7,763.0
7,947.2
Total liabilities and stockholders' equity
$ 63,444.8
$ 60,871.2
$ 61,509.7
$ 58,589.8
(1) The Consolidated Statement of Condition for December 31, 2020 is preliminary and does not reflect any estimated goodwill impairment that the Company is in the process of evaluating.
(2) In connection with the United Bank core system conversion in April 2020, approximately $400 million of loans secured by owner-occupied commercial properties were prospectively reclassified, at that time, from commercial real estate loans to commercial and industrial loans. Prior period loan balances were not restated to conform to the current presentation.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME (1)
Three Months Ended
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
(in millions, except per common share data)
2020
2020
2020
2020
2019
Interest and dividend income:
Commercial real estate (2)
$ 106.1
$ 110.5
$ 122.4
$ 149.6
$ 147.2
Commercial and industrial (2)
111.3
110.7
112.4
106.4
114.9
Equipment financing
62.1
65.4
67.6
68.2
66.7
Residential mortgage
74.9
82.1
84.8
90.4
88.2
Home equity and other consumer
18.7
19.9
20.1
28.0
30.8
Total interest on loans
373.1
388.6
407.3
442.6
447.8
Securities
47.2
47.5
49.8
51.2
47.8
Short-term investments
0.8
0.4
0.2
2.0
1.0
Loans held-for-sale
0.4
0.3
0.3
3.3
0.3
Total interest and dividend income
421.5
436.8
457.6
499.1
496.9
Interest expense:
Deposits
30.1
36.5
41.7
78.9
86.9
Borrowings
1.3
1.5
2.0
15.4
18.5
Notes and debentures
7.3
7.4
8.3
8.8
8.8
Total interest expense
38.7
45.4
52.0
103.1
114.2
Net interest income
382.8
391.4
405.6
396.0
382.7
Provision for credit losses on loans (3)
14.7
27.1
80.8
33.5
7.3
Provision for credit losses on securities (3)
-
(0.3)
-
-
-
Net interest income after provision for credit losses
368.1
364.6
324.8
362.5
375.4
Non-interest income:
Bank service charges
24.7
24.5
20.3
28.0
28.9
Investment management fees
18.9
18.8
17.4
18.1
19.3
Commercial banking lending fees
15.5
12.7
10.6
12.1
12.9
Operating lease income
12.9
12.4
11.8
12.6
12.7
Insurance revenue
4.1
9.7
9.0
10.9
7.5
Cash management fees
9.1
8.8
8.1
7.4
7.1
Customer interest rate swap income, net
2.2
1.2
2.7
8.8
8.5
Gain on sale of business, net of expenses (4)
75.9
-
-
-
-
Other non-interest income (4)
14.9
13.0
9.7
25.9
27.3
Total non-interest income
178.2
101.1
89.6
123.8
124.2
Non-interest expense:
Compensation and benefits
166.6
166.5
167.8
173.9
171.4
Occupancy and equipment
50.9
49.1
48.0
51.0
52.2
Professional and outside services
24.9
24.1
25.7
38.5
29.6
Amortization of other acquisition-related intangible assets
9.7
10.2
10.2
10.7
9.8
Operating lease expense
8.5
9.3
8.8
9.8
9.6
Regulatory assessments
6.9
8.4
8.7
8.7
7.3
Other non-interest expense
25.9
26.0
34.8
27.5
45.8
Total non-interest expense (4)
293.4
293.6
304.0
320.1
325.7
Income before income tax expense
252.9
172.1
110.4
166.2
173.9
Income tax expense
45.2
27.5
20.5
35.8
36.4
Net income
207.7
144.6
89.9
130.4
137.5
Preferred stock dividend
3.5
3.5
3.5
3.5
3.5
Net income available to common shareholders
$ 204.2
$ 141.1
$ 86.4
$ 126.9
$ 134.0
Earnings per common share:
Basic
$ 0.49
$ 0.34
$ 0.21
$ 0.30
$ 0.31
Diluted
0.49
0.34
0.21
0.30
0.31
(1) The Consolidated Statement of Income for the three months ended December 31, 2020 is preliminary and does not reflect any estimated goodwill impairment that the Company is in the process of evaluating.
(2) In connection with the United Bank core system conversion in April 2020, approximately $400 million of loans secured by owner-occupied commercial properties were prospectively reclassified, at that time, from commercial real estate loans to commercial and industrial loans. Prior period interest income amounts were not restated to conform to the current presentation.
(3) Provision for credit losses in 2020 reflects the application of the CECL standard and the impact of COVID-19.
(4) The gain on sale of business, net of expenses, is considered non-operating income. Other non-interest income includes $7.6 million of non-operating income for the three months ended December 31, 2019. Total non-interest expense includes $4.9 million , $4.6 million , $18.5 million , $17.9 million and $39.1 million of non-operating expenses for the three months endedDecember 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively. See Non-GAAP Financial Measures and Reconciliation to GAAP.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME (1)
Twelve Months Ended
December 31,
(in millions, except per common share data)
2020
2019
Interest and dividend income:
Commercial real estate
$ 488.6
$ 556.4
Commercial and industrial
440.8
443.6
Equipment financing
263.3
253.8
Residential mortgage
332.2
329.1
Home equity and other consumer
86.7
106.1
Total interest on loans
1,611.6
1,689.0
Securities
195.7
186.5
Loans held-for-sale
4.3
0.8
Short-term investments
3.4
4.8
Total interest and dividend income
1,815.0
1,881.1
Interest expense:
Deposits
187.2
356.9
Borrowings
20.2
77.0
Notes and debentures
31.8
34.9
Total interest expense
239.2
468.8
Net interest income
1,575.8
1,412.3
Provision for credit losses on loans (2)
156.1
28.3
Provision for credit losses on securities (2)
(0.3)
-
Net interest income after provision for credit losses
1,420.0
1,384.0
Non-interest income:
Bank service charges
97.5
107.5
Investment management fees
73.2
78.2
Commercial banking lending fees
50.9
42.7
Operating lease income
49.7
50.8
Insurance revenue
33.7
37.0
Cash management fees
33.4
28.4
Customer interest rate swap income, net
14.9
24.0
Gain on sale of business, net of expenses (3)
75.9
-
Other non-interest income (3)
63.5
62.5
Total non-interest income
492.7
431.1
Non-interest expense:
Compensation and benefits
674.8
646.2
Occupancy and equipment
199.0
185.9
Professional and outside services
113.2
98.2
Amortization of other acquisition-related intangible assets
40.8
32.5
Operating lease expense
36.4
38.8
Regulatory assessments
32.7
26.1
Other non-interest expense
114.2
135.0
Total non-interest expense (3)
1,211.1
1,162.7
Income before income tax expense
701.6
652.4
Income tax expense
129.0
132.0
Net income
572.6
520.4
Preferred stock dividend
14.1
14.1
Net income available to common shareholders
$ 558.5
$ 506.3
Earnings per common share:
Basic
$ 1.33
$ 1.28
Diluted
1.32
1.27
(1) The Consolidated Statement of Income for the twelve months ended December 31, 2020 is preliminary and
does not reflect any estimated goodwill impairment that the Company is in the process of evaluating.
(2) Provision for credit losses in 2020 reflects the application of the CECL standard and the impact of
COVID-19.
(3) The gain on sale of business, net of expenses, is considered non-operating income. Other non-interest
income includes $7.6 million of non-operating income for the twelve months ended December 31, 2019.
Total non-interest expense includes $45.9 million and $65.6 million of non-operating expenses for the
twelve months ended December 31, 2020 and 2019, 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, 2020
September 30, 2020
December 31, 2019
Three months ended
Average
Yield/
Average
Yield/
Average
Yield/
(dollars in millions)
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
Assets:
Short-term investments
$ 2,582.1
$ 0.8
0.12%
$ 841.5
$ 0.4
0.19%
$ 294.4
$ 1.0
1.39%
Securities (2)
8,390.2
52.3
2.50
7,922.4
52.5
2.65
7,372.2
52.6
2.85
Loans:
Commercial real estate
13,574.3
106.1
3.13
13,853.1
110.5
3.19
13,793.2
147.2
4.27
Commercial and industrial
14,621.8
113.6
3.11
14,419.8
113.0
3.13
10,805.1
117.7
4.36
Equipment financing
4,867.5
62.1
5.10
4,876.4
65.4
5.37
4,785.0
66.7
5.58
Residential mortgage
8,821.0
75.3
3.41
9,408.0
82.4
3.51
10,019.0
88.5
3.53
Home equity and other consumer
2,176.6
18.7
3.44
2,296.0
19.9
3.47
2,603.8
30.8
4.72
Total loans
44,061.2
375.8
3.41
44,853.3
391.2
3.49
42,006.1
450.9
4.29
Total earning assets
55,033.5
$ 428.9
3.12%
53,617.2
$ 444.1
3.31%
49,672.7
$ 504.5
4.06%
Other assets
7,362.6
7,676.2
6,457.2
Total assets
$ 62,396.1
$ 61,293.4
$ 56,129.9
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing
$ 14,742.6
$ -
- %
$ 13,753.8
$ -
- %
$ 9,593.6
$ -
- %
Savings, interest-bearing checking
and money market
29,978.3
14.7
0.20
28,970.0
16.4
0.23
23,674.3
49.7
0.84
Time
5,953.5
15.4
1.03
6,817.8
20.1
1.18
8,926.8
37.2
1.67
Total deposits
50,674.4
30.1
0.24
49,541.6
36.5
0.29
42,194.7
86.9
0.82
Borrowings:
Federal Home Loan Bank advances
571.8
1.1
0.77
640.5
1.3
0.79
2,287.7
11.4
1.99
Customer repurchase agreements
447.6
0.2
0.15
382.6
0.2
0.18
1,489.3
6.4
1.73
Federal funds purchased
213.3
-
0.09
260.1
-
0.08
369.2
0.7
0.73
Total borrowings
1,232.7
1.3
0.43
1,283.2
1.5
0.46
4,146.2
18.5
1.78
Notes and debentures
1,010.8
7.3
2.89
1,014.0
7.4
2.92
973.5
8.8
3.61
Total funding liabilities
52,917.9
$ 38.7
0.29%
51,838.8
$ 45.4
0.35%
47,314.4
$ 114.2
0.96%
Other liabilities
1,594.2
1,653.3
1,161.3
Total liabilities
54,512.1
53,492.1
48,475.7
Stockholders' equity
7,884.0
7,801.3
7,654.2
Total liabilities and
stockholders' equity
$ 62,396.1
$ 61,293.4
$ 56,129.9
Net interest income/spread (3)
$ 390.2
2.83%
$ 398.7
2.96%
$ 390.3
3.10%
Net interest margin
2.84%
2.97%
3.14%
(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 $7.4 million , $7.3 million and $7.6 million for the three months ended
December 31, 2020, September 30, 2020 and December 31, 2019, respectively.
People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
December 31, 2020
December 31, 2019
Twelve months ended
Average
Yield/
Average
Yield/
(dollars in millions)
Balance
Interest
Rate
Balance
Interest
Rate
Assets:
Short-term investments
$ 1,125.1
$ 3.4
0.31%
$ 232.7
$ 4.8
2.06%
Securities (1)
8,143.7
215.7
2.65
7,217.5
205.2
2.84
Loans:
Commercial real estate
14,057.6
488.6
3.48
12,480.1
556.4
4.46
Commercial and industrial
13,456.8
451.0
3.35
9,874.7
454.3
4.60
Equipment financing
4,898.2
263.3
5.38
4,574.9
253.8
5.55
Residential mortgage
9,569.2
333.3
3.48
9,314.8
329.9
3.54
Home equity and other consumer
2,400.5
89.5
3.73
2,174.0
106.1
4.88
Total loans
44,382.3
1,625.7
3.66
38,418.5
1,700.5
4.43
Total earning assets
53,651.1
$ 1,844.8
3.44%
45,868.7
$ 1,910.5
4.17%
Other assets
7,387.0
5,789.3
Total assets
$ 61,038.1
$ 51,658.0
Liabilities and stockholders' equity:
Deposits:
Non-interest-bearing
$ 12,864.4
$ -
- %
$ 8,822.9
$ -
- %
Savings, interest-bearing checking
and money market
27,831.9
92.2
0.33
22,204.1
209.3
0.94
Time
7,520.6
95.0
1.26
8,115.7
147.6
1.82
Total deposits
48,216.9
187.2
0.39
39,142.7
356.9
0.91
Borrowings:
Federal Home Loan Bank advances
1,371.2
13.7
1.00
2,098.0
50.1
2.39
Federal funds purchased
688.2
5.4
0.79
1,127.5
24.6
2.18
Customer repurchase agreements
379.0
1.1
0.29
296.6
2.2
0.75
Other borrowings
-
-
-
3.3
0.1
1.87
Total borrowings
2,438.4
20.2
0.83
3,525.4
77.0
2.18
Notes and debentures
1,009.5
31.8
3.15
922.1
34.9
3.78
Total funding liabilities
51,664.8
$ 239.2
0.46%
43,590.2
$ 468.8
1.08%
Other liabilities
1,561.5
996.5
Total liabilities
53,226.3
44,586.7
Stockholders' equity
7,811.8
7,071.3
Total liabilities and
stockholders' equity
$ 61,038.1
$ 51,658.0
Net interest income/spread (2)
$ 1,605.6
2.98%
$ 1,441.7
3.09%
Net interest margin
2.99%
3.14%
(1) Average balances and yields for securities are based on amortized cost.
(2) The fully taxable equivalent adjustment was $29.8 million and $29.4 million for the twelve months
ended December 31, 2020 and 2019, respectively.
People's United Financial, Inc.
As a result of adopting the CECL standard on January 1, 2020, People's United's prior distinction between the originated loan portfolio and the acquired loan portfolio is no longer necessary. Accordingly, prior period disclosures have been revised to conform to the current period presentation.
NON-PERFORMING ASSETS
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
(dollars in millions)
2020
2020
2020
2020
2019
Non-accrual loans:
Commercial:
Commercial real estate
$
60.4
$
85.3
$
73.6
$
53.5
$
53.8
Commercial and industrial
76.4
86.7
88.8
55.6
38.5
Equipment financing
109.3
49.0
48.6
42.5
47.7
Total Commercial
246.1
221.0
211.0
151.6
140.0
Retail:
Residential mortgage
62.3
62.9
62.6
66.6
63.3
Home equity
20.5
22.1
22.5
22.1
20.8
Other consumer
0.2
0.2
0.1
0.1
-
Total Retail
83.0
85.2
85.2
88.8
84.1
Total non-accrual loans (1)
329.1
306.2
296.2
240.4
224.1
Real estate owned:
Commercial
3.6
3.6
7.3
7.3
7.3
Residential
3.2
1.9
4.9
9.5
11.9
Total real estate owned
6.8
5.5
12.2
9.5
11.9
Repossessed assets
5.7
9.7
6.2
4.6
4.2
Total non-performing assets
$
341.6
$
321.4
$
314.6
$
254.5
$
240.2
Non-accrual loans as a percentage of total loans
0.75
%
0.68
%
0.65
%
0.54
%
0.51
%
Non-performing assets as a percentage of:
Total loans, real estate owned and repossessed assets
0.78
0.71
0.69
0.59
0.57
Tangible stockholders' equity and allowance
for credit losses
6.59
6.41
6.39
5.45
5.03
(1) Reported net of government guarantees totaling $2.5 million at December 31, 2020, $2.4 million at September 30, 2020, $2.9 million at June 30, 2020, $1.2 million at March 31, 2020 and $1.3 million at December 31, 2019.
People's United Financial, Inc.
PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS
Three Months Ended
Dec. 31,
Sept 30,
June 30,
March 31,
Dec. 31,
(dollars in millions)
2020
2020
2020
2020
2019
Allowance for credit losses on loans:
Balance at beginning of period
$
423.8
$
414.0
$
341.7
$
246.6
$
246.0
CECL transition adjustment
-
-
-
72.2
N/A
Balance at beginning of period, adjusted
423.8
414.0
341.7
318.8
246.0
Charge-offs
(16.7)
(19.3)
(10.3)
(12.6)
(8.5)
Recoveries
3.3
2.0
1.8
2.0
1.8
Net loan charge-offs
(13.4)
(17.3)
(8.5)
(10.6)
(6.7)
Provision for credit losses on loans
14.7
27.1
80.8
33.5
7.3
Balance at end of period
$
425.1
$
423.8
$
414.0
$
341.7
$
246.6
Allowance for credit losses on loans
as a percentage of:
Total loans
0.97
%
0.94
%
0.91
%
0.77
%
0.57
%
Non-accrual loans
129.1
138.4
139.8
142.2
110.0
N/A - not applicable
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
(dollars in millions)
2020
2020
2020
2020
2019
Commercial:
Commercial real estate
$
0.1
$
4.1
$
1.8
$
3.4
$
(0.1)
Commercial and industrial
6.6
6.9
-
1.0
2.3
Equipment financing
6.8
6.2
5.2
3.9
4.2
Total
13.5
17.2
7.0
8.3
6.4
Retail:
Residential mortgage
(0.3)
(0.2)
-
0.8
(0.2)
Home equity
-
-
0.6
0.1
0.3
Other consumer
0.2
0.3
0.9
1.4
0.2
Total
(0.1)
0.1
1.5
2.3
0.3
Total net loan charge-offs
$
13.4
$
17.3
$
8.5
$
10.6
$
6.7
Net loan charge-offs to
average total loans (annualized)
0.12
%
0.15
%
0.08
%
0.10
%
0.06
%
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP
In addition to evaluating People's United Financial Inc. ("People's United") results of operations in accordance with U.S. generally accepted accounting principles ("GAAP"), management routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as the efficiency and tangible common equity ratios, tangible book value per common 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 common share are used to analyze the relative strength of People's United's capital position.
The efficiency ratio, which represents an approximate measure of the cost required by People's United to generate a dollar of revenue, is the ratio of (i) total non-interest expense (excluding operating lease expense, 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, the netting of operating lease expense 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 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 available to common shareholders those items that management considers to be of such a non-recurring or infrequent nature that, by excluding such items (net of income taxes), People's United's results can be measured and assessed on a more consistent basis from period to period. Items excluded from operating earnings, which include, but are not limited to: (i) non-recurring gains/losses; (ii) merger-related expenses, including acquisition integration and other costs; (iii) writedowns of banking house assets and related lease termination costs; (iv) severance-related costs; and (v) charges related to executive-level management separation costs, are generally also excluded when calculating the efficiency ratio. Operating earnings per common share ("EPS") is derived by determining the per common share impact of the respective adjustments to arrive at operating earnings and adding (subtracting) such amounts to (from) diluted EPS, as reported. Operating return on average assets is calculated by dividing operating earnings (annualized) by average total assets. Operating return on average tangible common equity is calculated by dividing operating earnings (annualized) by average tangible common equity. The operating common dividend payout ratio is calculated by dividing common dividends paid by operating earnings for the respective period.
Pre-provision net revenue is a useful financial measure as it enables an assessment of the Company's ability to generate earnings to cover credit losses through a credit cycle as well as providing an additional basis for comparing the Company's results of operation between periods by isolating the impact of the provision for credit losses, which can vary significantly between periods.
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 common 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).
In light of diversity in presentation among financial institutions, the methodologies used by People's United for determining the non-GAAP financial measures discussed above may differ from those used by other financial
institutions.
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued
OPERATING NON-INTEREST EXPENSE AND EFFICIENCY RATIO
Three Months Ended
Twelve Months Ended
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
Dec. 31,
Dec. 31,
(dollars in millions)
2020
2020
2020
2020
2019
2020
2019
Total non-interest expense
$ 293.4
$ 293.6
$ 304.0
$ 320.1
$ 325.7
$ 1,211.1
$ 1,162.7
Adjustments to arrive at operating
non-interest expense:
Merger-related expenses
(4.9)
(4.6)
(18.5)
(17.9)
(22.6)
(45.9)
(49.1)
Intangible asset write-down
-
-
-
-
(16.5)
-
(16.5)
Total
(4.9)
(4.6)
(18.5)
(17.9)
(39.1)
(45.9)
(65.6)
Operating non-interest expense
288.5
289.0
285.5
302.2
286.6
1,165.2
1,097.1
Adjustments:
Amortization of other acquisition-related
intangible assets
(9.7)
(10.2)
(10.2)
(10.7)
(9.8)
(40.8)
(32.5)
Operating lease expense
(8.5)
(9.3)
(8.8)
(9.8)
(9.6)
(36.4)
(38.8)
Other (1)
(1.3)
(5.1)
(1.9)
(1.9)
(1.6)
(10.2)
(6.2)
Total non-interest expense for
efficiency ratio
$ 269.0
$ 264.4
$ 264.6
$ 279.8
$ 265.6
$ 1,077.8
$ 1,019.6
Net interest income (FTE basis)
$ 390.2
$ 398.7
$ 413.0
$ 403.7
$ 390.3
$ 1,605.6
$ 1,441.7
Total non-interest income
178.2
101.1
89.6
123.8
124.2
492.7
431.1
Total revenues
568.4
499.8
502.6
527.5
514.5
2,098.3
1,872.8
Adjustments:
Gain on sale of business, net of expenses
(75.9)
-
-
-
-
(75.9)
-
Operating lease expense
(8.5)
(9.3)
(8.8)
(9.8)
(9.6)
(36.4)
(38.8)
BOLI FTE adjustment
0.9
0.8
1.0
0.8
0.7
3.5
2.5
Gain on sale of branches, net of expenses
-
-
-
-
(7.6)
-
(7.6)
Net security gains
-
-
-
-
(0.1)
-
(0.2)
Other (2)
-
(0.1)
-
(0.3)
(3.2)
(0.4)
(2.8)
Total revenues for efficiency ratio
$ 484.9
$ 491.2
$ 494.8
$ 518.2
$ 494.7
$ 1,989.1
$ 1,825.9
Efficiency ratio
55.5%
53.8%
53.5%
54.0%
53.7%
54.2%
55.8%
(1) Items classified as "other" and deducted from non-interest expense for purposes of calculating the efficiency ratio
include certain franchise taxes and real estate owned expenses.
(2) Items classified as "other" and deducted from total revenues for purposes of calculating the efficiency ratio
include, as applicable, asset write-offs and gains/losses associated with the sale of branch locations.
PRE-PROVISION NET REVENUE
Three Months Ended
Twelve Months Ended
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
Dec. 31,
Dec. 31,
(in millions)
2020
2020
2020
2020
2019
2020
2019
Net interest income
$ 382.8
$ 391.4
$ 405.6
$ 396.0
$ 382.7
$ 1,575.8
$ 1,412.3
Non-interest income
178.2
101.1
89.6
123.8
124.2
492.7
431.1
Non-interest expense
(293.4)
(293.6)
(304.0)
(320.1)
(325.7)
(1,211.1)
(1,162.7)
Pre-provision net revenue
267.6
198.9
191.2
199.7
181.2
857.4
680.7
Non-operating income
(75.9)
-
-
-
(7.6)
(75.9)
(7.6)
Non-operating expense
4.9
4.6
18.5
17.9
39.1
45.9
65.6
Operating pre-provision net revenue
$ 196.6
$ 203.5
$ 209.7
$ 217.6
$ 212.7
$ 827.4
$ 738.7
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 common share data)
2020
2020
2020
2020
2019
2020 (1)
2019
Net income available to common shareholders
$ 204.2
$ 141.1
$ 86.4
$ 126.9
$ 134.0
$ 558.5
$ 506.3
Adjustments to arrive at operating earnings:
Merger-related expenses
4.9
4.6
18.5
17.9
22.6
45.9
49.1
Gain on sale of business, net of expenses
(75.9)
-
-
-
-
(75.9)
-
Intangible asset write-down
-
-
-
-
16.5
-
16.5
Gain on sale of branches, net of expenses
-
-
-
-
(7.6)
-
(7.6)
Total pre-tax adjustments
(71.0)
4.6
18.5
17.9
31.5
(30.0)
58.0
Tax effect
14.5
(1.0)
(3.9)
(3.7)
(6.7)
6.1
(12.2)
Total adjustments, net of tax
(56.5)
3.6
14.6
14.2
24.8
(23.9)
45.8
Operating earnings
$ 147.7
$ 144.7
$ 101.0
$ 141.1
$ 158.8
$ 534.6
$ 552.1
Diluted EPS, as reported
$ 0.49
$ 0.34
$ 0.21
$ 0.30
$ 0.31
$ 1.32
$ 1.27
Adjustments to arrive at operating EPS:
Merger-related expenses
-
-
0.03
0.03
0.04
0.09
0.10
Gain on sale of business, net of expenses
(0.14)
-
-
-
-
(0.14)
-
Intangible asset write-down
-
-
-
-
0.03
-
0.03
Gain on sale of branches, net of expenses
-
-
-
-
(0.01)
-
(0.01)
Total adjustments per common share
(0.14)
-
0.03
0.03
0.06
(0.05)
0.12
Operating EPS
$ 0.35
$ 0.34
$ 0.24
$ 0.33
$ 0.37
$ 1.27
$ 1.39
Average total assets
$ 62,396
$ 61,293
$ 61,841
$ 58,603
$ 56,130
$ 61,038
$ 51,658
Operating return on
average assets (annualized)
0.95%
0.94%
0.65%
0.96%
1.13%
0.88%
1.07%
(1) The sum of the quarterly amounts for certain line items may not equal twelve months amounts due to rounding.
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)
2020
2020
2020
2020
2019
2020
2019
Operating earnings
$ 147.7
$ 144.7
$ 101.0
$ 141.1
$ 158.8
$ 534.6
$ 552.1
Average stockholders' equity
$ 7,884
$ 7,801
$ 7,757
$ 7,804
$ 7,654
$ 7,812
$ 7,071
Less: Average preferred stock
244
244
244
244
244
244
244
Average common equity
7,640
7,557
7,513
7,560
7,410
7,568
6,827
Less: Average goodwill and average other
acquisition-related intangible assets
3,213
3,249
3,259
3,269
3,226
3,247
3,060
Average tangible common equity
$ 4,427
$ 4,308
$ 4,254
$ 4,291
$ 4,184
$ 4,321
$ 3,767
Operating return on average tangible
common equity (annualized)
13.3%
13.4%
9.5%
13.2%
15.2%
12.4%
14.7%
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued
OPERATING COMMON 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)
2020
2020
2020
2020
2019
2020 (1)
2019
Common dividends paid
$ 75.6
$ 75.7
$ 75.5
$ 77.3
$ 69.9
$ 304.1
$ 274.8
Operating earnings
$ 147.7
$ 144.7
$ 101.0
$ 141.1
$ 158.8
$ 534.6
$ 552.1
Operating common dividend payout ratio
51.2%
52.3%
74.8%
54.8%
44.0%
56.9%
49.8%
(1) The sum of the quarterly amounts for certain line items may not equal twelve months amounts due to rounding.
TANGIBLE COMMON EQUITY RATIO
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
(dollars in millions)
2020
2020
2020
2020
2019
Total stockholders' equity
$ 7,956
$ 7,831
$ 7,763
$ 7,726
$ 7,947
Less: Preferred stock
244
244
244
244
244
Common equity
7,712
7,587
7,519
7,482
7,703
Less: Goodwill and other
acquisition-related intangible assets
3,199
3,244
3,254
3,264
3,275
Tangible common equity
$ 4,513
$ 4,343
$ 4,265
$ 4,218
$ 4,428
Total assets
$ 63,445
$ 60,871
$ 61,510
$ 60,433
$ 58,590
Less: Goodwill and other
acquisition-related intangible assets
3,199
3,244
3,254
3,264
3,275
Tangible assets
$ 60,246
$ 57,627
$ 58,256
$ 57,169
$ 55,315
Tangible common equity ratio
7.5%
7.5%
7.3%
7.4%
8.0%
TANGIBLE BOOK VALUE PER COMMON SHARE
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
(in millions, except per common share data)
2020
2020
2020
2020
2019
Tangible common equity
$ 4,513
$ 4,343
$ 4,265
$ 4,218
$ 4,428
Common shares issued
533.68
533.67
533.59
533.47
532.83
Less: Shares classified as treasury shares
109.00
109.00
109.00
109.00
89.17
Common shares outstanding
424.68
424.67
424.59
424.47
443.66
Less: Unallocated ESOP shares
5.57
5.66
5.75
5.84
5.92
Common shares
419.11
419.01
418.84
418.63
437.74
Tangible book value per common share
$ 10.77
$ 10.36
$ 10.18
$ 10.07
$ 10.12
http://www.prnewswire.com/news-releases/peoples-united-financial-reports-fourth-quarter-net-income-of-207-7-million-or-0-49-per-common-share-301212901.html
SOURCE People's United Financial, Inc.
