UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2017
Commission File Number001-33326
PEOPLE’S UNITED FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
PEOPLE’S UNITED FINANCIAL, INC. | ||||||||||||||
(Exact name of registrant as specified in its charter) | ||||||||||||||
Delaware | 20-8447891 | |||||||||||||||||||
(State or other jurisdiction of
| (I.R.S. Employer
| |||||||||||||||||||
850 Main Street | ||||||||||||||||||||
Bridgeport, Connecticut | 06604 | |||||||||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
(203) 338-7171 | ||||||||||||||||||||
(Registrant's telephone number, including area code) |
(203)338-7171
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value per share | PBCT | NASDAQ Global Select Market | ||||||||||||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, $0.01 par value per share | PBCTP | NASDAQ Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Part I – Financial Information | Page | |||||||||||||||||
Item 1. | ||||||||||||||||||
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Item 2. | ||||||||||||||||||
Item 3. | ||||||||||||||||||
Item 4. | ||||||||||||||||||
Part II – Other Information | ||||||||||||||||||
Item 1. | ||||||||||||||||||
Item 1A. | ||||||||||||||||||
Item 2. | ||||||||||||||||||
Item 3. | ||||||||||||||||||
Item 4. | ||||||||||||||||||
Item 5. | ||||||||||||||||||
Item 6. | ||||||||||||||||||
(in millions) | September 30, 2017 | December 31, 2016 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 414.1 | $ | 432.4 | ||||
Short-term investments (note 3) | 302.5 | 181.7 | ||||||
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Total cash and cash equivalents | 716.6 | 614.1 | ||||||
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Securities (note 3): | ||||||||
Trading account securities, at fair value | 8.3 | 6.8 | ||||||
Securities available for sale, at fair value | 3,197.5 | 4,409.9 | ||||||
Securities held to maturity, at amortized cost (fair value of $3.44 billion and $2.01 billion) | 3,387.6 | 2,005.4 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 320.9 | 315.8 | ||||||
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Total securities | 6,914.3 | 6,737.9 | ||||||
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Loans held for sale | 15.0 | 39.3 | ||||||
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Loans (note 4): | ||||||||
Commercial real estate | 11,180.5 | 10,247.3 | ||||||
Commercial and industrial | 8,624.7 | 8,125.1 | ||||||
Equipment financing | 3,705.6 | 3,032.5 | ||||||
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Total Commercial Portfolio | 23,510.8 | 21,404.9 | ||||||
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Residential mortgage | 6,781.0 | 6,216.7 | ||||||
Home equity and other consumer | 2,092.7 | 2,123.3 | ||||||
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Total Retail Portfolio | 8,873.7 | 8,340.0 | ||||||
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Total loans | 32,384.5 | 29,744.9 | ||||||
Less allowance for loan losses | (233.4 | ) | (229.3 | ) | ||||
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Total loans, net | 32,151.1 | 29,515.6 | ||||||
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Goodwill (note 7) | 2,411.4 | 1,992.7 | ||||||
Bank-owned life insurance | 405.6 | 349.1 | ||||||
Premises and equipment, net | 264.7 | 244.5 | ||||||
Other acquisition-related intangible assets (note 7) | 156.5 | 149.4 | ||||||
Other assets (notes 1, 4 and 12) | 963.0 | 967.2 | ||||||
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Total assets | $ | 43,998.2 | $ | 40,609.8 | ||||
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Liabilities | ||||||||
Deposits: | ||||||||
Non-interest-bearing | $ | 7,655.3 | $ | 6,660.8 | ||||
Savings | 4,513.1 | 4,397.7 | ||||||
Interest-bearing checking and money market | 15,143.1 | 14,260.1 | ||||||
Time | 5,235.8 | 4,542.2 | ||||||
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Total deposits | 32,547.3 | 29,860.8 | ||||||
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Borrowings: | ||||||||
Federal Home Loan Bank advances | 3,074.1 | 3,061.1 | ||||||
Federal funds purchased | 543.0 | 617.0 | ||||||
Customer repurchase agreements | 295.8 | 343.3 | ||||||
Other borrowings | 231.1 | 35.4 | ||||||
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Total borrowings | 4,144.0 | 4,056.8 | ||||||
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Notes and debentures | 906.2 | 1,030.1 | ||||||
Other liabilities (notes 1 and 12) | 654.6 | 520.2 | ||||||
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Total liabilities | 38,252.1 | 35,467.9 | ||||||
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Commitments and contingencies (notes 1 and 9) | ||||||||
Stockholders’ Equity(notes 2, 5 and 8) | ||||||||
Preferred stock ($0.01 par value; 50.0 million shares authorized; 10.0 million shares | 244.1 | 244.1 | ||||||
Common stock ($0.01 par value; 1.95 billion shares authorized; 433.6 million shares | 4.3 | 4.0 | ||||||
Additionalpaid-in capital | 5,972.2 | 5,446.1 | ||||||
Retained earnings | 996.4 | 949.3 | ||||||
Unallocated common stock of Employee Stock Ownership Plan, at cost (6.7 million shares | (139.1 | ) | (144.6 | ) | ||||
Accumulated other comprehensive loss | (169.7 | ) | (195.0 | ) | ||||
Treasury stock, at cost (89.0 million shares and 89.1 million shares) | (1,162.1 | ) | (1,162.0 | ) | ||||
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Total stockholders’ equity | 5,746.1 | 5,141.9 | ||||||
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Total liabilities and stockholders’ equity | $ | 43,998.2 | $ | 40,609.8 | ||||
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(in millions) | June 30, 2019 | December 31, 2018 | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | 505.9 | $ | 665.7 | |||||||
Short-term investments | 274.8 | 266.3 | |||||||||
Total cash and cash equivalents (note 3) | 780.7 | 932.0 | |||||||||
Securities (note 3): | |||||||||||
Trading debt securities, at fair value | 9.3 | 8.4 | |||||||||
Equity securities, at fair value | 8.5 | 8.1 | |||||||||
Debt securities available-for-sale, at fair value | 2,971.2 | 3,121.0 | |||||||||
Debt securities held-to-maturity, at amortized cost (fair value of $3.93 billion and $3.78 billion) | 3,807.5 | 3,792.3 | |||||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 289.4 | 303.4 | |||||||||
Total securities | 7,085.9 | 7,233.2 | |||||||||
Loans held-for-sale | 17.4 | 19.5 | |||||||||
Loans (notes 4 and 14): | |||||||||||
Commercial real estate | 12,230.7 | 11,649.6 | |||||||||
Commercial and industrial | 10,121.8 | 9,088.9 | |||||||||
Equipment financing | 4,611.0 | 4,339.2 | |||||||||
Total Commercial Portfolio | 26,963.5 | 25,077.7 | |||||||||
Residential mortgage | 9,532.6 | 8,154.2 | |||||||||
Home equity and other consumer | 2,060.6 | 2,009.5 | |||||||||
Total Retail Portfolio | 11,593.2 | 10,163.7 | |||||||||
Total loans | 38,556.7 | 35,241.4 | |||||||||
Less allowance for loan losses | (244.0) | (240.4) | |||||||||
Total loans, net | 38,312.7 | 35,001.0 | |||||||||
Goodwill (note 7) | 2,868.1 | 2,685.7 | |||||||||
Bank-owned life insurance | 504.4 | 467.0 | |||||||||
Premises and equipment, net | 261.0 | 267.3 | |||||||||
Other acquisition-related intangible assets (note 7) | 204.8 | 180.0 | |||||||||
Other assets (notes 1, 4, 12 and 14) | 1,587.5 | 1,091.6 | |||||||||
Total assets | $ | 51,622.5 | $ | 47,877.3 | |||||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Non-interest-bearing | $ | 8,747.2 | $ | 8,543.0 | |||||||
Savings | 4,847.4 | 4,116.5 | |||||||||
Interest-bearing checking and money market | 17,424.8 | 16,583.3 | |||||||||
Time | 8,447.9 | 6,916.2 | |||||||||
Total deposits | 39,467.3 | 36,159.0 | |||||||||
Borrowings: | |||||||||||
Federal Home Loan Bank advances | 2,054.4 | 2,404.5 | |||||||||
Federal funds purchased | 1,110.0 | 845.0 | |||||||||
Customer repurchase agreements | 235.2 | 332.9 | |||||||||
Other borrowings | — | 11.0 | |||||||||
Total borrowings | 3,399.6 | 3,593.4 | |||||||||
Notes and debentures | 911.5 | 895.8 | |||||||||
Other liabilities (notes 1, 12 and 14) | 797.9 | 695.2 | |||||||||
Total liabilities | 44,576.3 | 41,343.4 | |||||||||
Commitments and contingencies (notes 1, 9 and 14) | |||||||||||
Stockholders’ Equity (notes 2, 5, 8 and 15) | |||||||||||
Preferred stock ($0.01 par value; 50.0 million shares authorized; 10.0 million shares issued and outstanding at both dates) | 244.1 | 244.1 | |||||||||
Common stock ($0.01 par value; 1.95 billion shares authorized; 487.3 million shares and 466.3 million shares issued) | 4.9 | 4.7 | |||||||||
Additional paid-in capital | 6,890.7 | 6,549.3 | |||||||||
Retained earnings | 1,388.1 | 1,284.8 | |||||||||
Unallocated common stock of Employee Stock Ownership Plan, at cost (6.1 million shares and 6.3 million shares) | (126.5) | (130.1) | |||||||||
Accumulated other comprehensive loss | (193.0) | (256.8) | |||||||||
Treasury stock, at cost (89.0 million shares at both dates) | (1,162.1) | (1,162.1) | |||||||||
Total stockholders’ equity | 7,046.2 | 6,533.9 | |||||||||
Total liabilities and stockholders’ equity | $ | 51,622.5 | $ | 47,877.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions, except per common share data) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest and dividend income: | ||||||||||||||||
Commercial real estate | $ | 105.6 | $ | 85.7 | $ | 299.5 | $ | 257.8 | ||||||||
Commercial and industrial | 80.0 | 66.9 | 218.7 | 190.0 | ||||||||||||
Equipment financing | 41.5 | 32.8 | 104.6 | 99.1 | ||||||||||||
Residential mortgage | 52.5 | 45.7 | 154.1 | 133.4 | ||||||||||||
Home equity and other consumer | 21.0 | 18.4 | 59.3 | 55.4 | ||||||||||||
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Total interest on loans | 300.6 | 249.5 | 836.2 | 735.7 | ||||||||||||
Securities | 37.2 | 34.2 | 112.1 | 103.4 | ||||||||||||
Short-term investments | 1.1 | 0.4 | 2.7 | 1.1 | ||||||||||||
Loans held for sale | 0.3 | 0.4 | 0.7 | 0.8 | ||||||||||||
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Total interest and dividend income | 339.2 | 284.5 | 951.7 | 841.0 | ||||||||||||
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Interest expense: | ||||||||||||||||
Deposits | 34.4 | 25.2 | 92.4 | 75.8 | ||||||||||||
Borrowings | 12.7 | 6.1 | 28.9 | 16.4 | ||||||||||||
Notes and debentures | 7.5 | 7.9 | 22.3 | 23.4 | ||||||||||||
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Total interest expense | 54.6 | 39.2 | 143.6 | 115.6 | ||||||||||||
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Net interest income | 284.6 | 245.3 | 808.1 | 725.4 | ||||||||||||
Provision for loan losses (note 4) | 7.0 | 8.4 | 18.5 | 28.9 | ||||||||||||
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Net interest income after provision for loan losses | 277.6 | 236.9 | 789.6 | 696.5 | ||||||||||||
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Non-interest income: | ||||||||||||||||
Bank service charges | 25.3 | 25.3 | 73.8 | 73.8 | ||||||||||||
Investment management fees | 16.9 | 11.6 | 49.2 | 34.1 | ||||||||||||
Operating lease income | 10.9 | 11.2 | 32.1 | 31.7 | ||||||||||||
Commercial banking lending fees | 7.0 | 7.1 | 26.7 | 24.4 | ||||||||||||
Insurance revenue | 9.7 | 9.8 | 26.3 | 26.1 | ||||||||||||
Cash management fees | 6.8 | 6.5 | 19.6 | 18.8 | ||||||||||||
Brokerage commissions | 2.8 | 3.2 | 9.2 | 9.4 | ||||||||||||
Net gains on sales of residential mortgage loans | 1.1 | 1.9 | 2.7 | 3.7 | ||||||||||||
Net security (losses) gains (note 3) | — | — | (15.6 | ) | 0.1 | |||||||||||
Othernon-interest income | 8.8 | 14.2 | 41.6 | 36.4 | ||||||||||||
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Totalnon-interest income | 89.3 | 90.8 | 265.6 | 258.5 | ||||||||||||
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Non-interest expense(note 2): | ||||||||||||||||
Compensation and benefits | 128.0 | 116.1 | 383.6 | 341.6 | ||||||||||||
Occupancy and equipment | 40.2 | 37.7 | 118.6 | 112.6 | ||||||||||||
Professional and outside services | 19.2 | 17.7 | 62.8 | 51.5 | ||||||||||||
Regulatory assessments | 10.3 | 9.9 | 29.8 | 27.1 | ||||||||||||
Operating lease expense | 8.8 | 9.7 | 26.3 | 28.0 | ||||||||||||
Amortization of other acquisition-related intangible assets (note 7) | 7.9 | 5.8 | 22.1 | 17.4 | ||||||||||||
Othernon-interest expense | 22.7 | 24.5 | 77.3 | 73.4 | ||||||||||||
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Totalnon-interest expense | 237.1 | 221.4 | 720.5 | 651.6 | ||||||||||||
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Income before income tax expense | 129.8 | 106.3 | 334.7 | 303.4 | ||||||||||||
Income tax expense (notes 1 and 14) | 39.0 | 32.6 | 103.8 | 98.3 | ||||||||||||
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Net income | 90.8 | 73.7 | 230.9 | 205.1 | ||||||||||||
Preferred stock dividend | 3.5 | — | 10.5 | — | ||||||||||||
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Net income available to common shareholders | $ | 87.3 | $ | 73.7 | $ | 220.4 | $ | 205.1 | ||||||||
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Earnings per common share(note 6): | ||||||||||||||||
Basic | $ | 0.26 | $ | 0.24 | $ | 0.67 | $ | 0.68 | ||||||||
Diluted | 0.26 | 0.24 | 0.67 | 0.68 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(in millions, except per common share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 139.9 | $ | 111.5 | $ | 272.6 | $ | 218.5 | |||||||||||||||||||||||||||
Commercial and industrial | 111.4 | 90.1 | 215.3 | 172.4 | |||||||||||||||||||||||||||||||
Equipment financing | 62.8 | 50.5 | 121.8 | 99.4 | |||||||||||||||||||||||||||||||
Residential mortgage | 85.5 | 55.3 | 156.2 | 110.0 | |||||||||||||||||||||||||||||||
Home equity and other consumer | 25.7 | 21.4 | 50.6 | 42.2 | |||||||||||||||||||||||||||||||
Total interest on loans | 425.3 | 328.8 | 816.5 | 642.5 | |||||||||||||||||||||||||||||||
Securities | 46.2 | 45.1 | 94.0 | 89.1 | |||||||||||||||||||||||||||||||
Short-term investments | 1.2 | 1.3 | 2.5 | 2.5 | |||||||||||||||||||||||||||||||
Loans held-for-sale | 0.1 | 0.2 | 0.3 | 0.4 | |||||||||||||||||||||||||||||||
Total interest and dividend income | 472.8 | 375.4 | 913.3 | 734.5 | |||||||||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Deposits | 96.6 | 47.3 | 177.8 | 88.6 | |||||||||||||||||||||||||||||||
Borrowings | 19.3 | 18.5 | 37.0 | 32.7 | |||||||||||||||||||||||||||||||
Notes and debentures | 8.8 | 8.4 | 17.6 | 16.2 | |||||||||||||||||||||||||||||||
Total interest expense | 124.7 | 74.2 | 232.4 | 137.5 | |||||||||||||||||||||||||||||||
Net interest income | 348.1 | 301.2 | 680.9 | 597.0 | |||||||||||||||||||||||||||||||
Provision for loan losses (note 4) | 7.6 | 6.5 | 13.2 | 11.9 | |||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 340.5 | 294.7 | 667.7 | 585.1 | |||||||||||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||||||||
Bank service charges | 26.4 | 24.3 | 51.6 | 48.1 | |||||||||||||||||||||||||||||||
Investment management fees | 17.1 | 17.2 | 33.6 | 34.9 | |||||||||||||||||||||||||||||||
Operating lease income (note 14) | 12.7 | 11.2 | 25.4 | 21.9 | |||||||||||||||||||||||||||||||
Insurance revenue | 8.7 | 8.3 | 19.2 | 18.1 | |||||||||||||||||||||||||||||||
Commercial banking lending fees | 10.2 | 9.4 | 18.0 | 19.8 | |||||||||||||||||||||||||||||||
Cash management fees | 7.2 | 7.0 | 14.0 | 13.6 | |||||||||||||||||||||||||||||||
Brokerage commissions | 2.6 | 3.2 | 5.4 | 6.3 | |||||||||||||||||||||||||||||||
Other non-interest income (note 3) | 21.4 | 14.3 | 33.7 | 22.6 | |||||||||||||||||||||||||||||||
Total non-interest income | 106.3 | 94.9 | 200.9 | 185.3 | |||||||||||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||||||||
Compensation and benefits | 161.3 | 135.0 | 316.7 | 275.7 | |||||||||||||||||||||||||||||||
Occupancy and equipment | 44.4 | 40.8 | 88.7 | 82.0 | |||||||||||||||||||||||||||||||
Professional and outside services | 24.9 | 20.6 | 44.9 | 39.2 | |||||||||||||||||||||||||||||||
Operating lease expense | 9.9 | 8.7 | 19.3 | 17.7 | |||||||||||||||||||||||||||||||
Amortization of other acquisition-related intangible assets (note 7) | 8.0 | 4.9 | 14.7 | 10.0 | |||||||||||||||||||||||||||||||
Regulatory assessments | 6.5 | 9.9 | 13.5 | 20.5 | |||||||||||||||||||||||||||||||
Other non-interest expense | 23.4 | 28.7 | 57.8 | 47.0 | |||||||||||||||||||||||||||||||
Total non-interest expense | 278.4 | 248.6 | 555.6 | 492.1 | |||||||||||||||||||||||||||||||
Income before income tax expense | 168.4 | 141.0 | 313.0 | 278.3 | |||||||||||||||||||||||||||||||
Income tax expense (note 1) | 35.2 | 30.8 | 65.2 | 60.2 | |||||||||||||||||||||||||||||||
Net income | 133.2 | 110.2 | 247.8 | 218.1 | |||||||||||||||||||||||||||||||
Preferred stock dividend | 3.5 | 3.5 | 7.0 | 7.0 | |||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 129.7 | $ | 106.7 | $ | 240.8 | $ | 211.1 | |||||||||||||||||||||||||||
Earnings per common share (note 6): | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.33 | $ | 0.31 | $ | 0.63 | $ | 0.62 | |||||||||||||||||||||||||||
Diluted | 0.33 | 0.31 | 0.63 | 0.61 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 90.8 | $ | 73.7 | $ | 230.9 | $ | 205.1 | ||||||||
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Other comprehensive income (loss), net of tax: | ||||||||||||||||
Net actuarial loss and prior service credit related to pension | 0.9 | 0.9 | 2.8 | 2.8 | ||||||||||||
Net unrealized gains and losses on securities available for sale | 3.6 | (1.7 | ) | 21.0 | 52.3 | |||||||||||
Amortization of unrealized losses on securities transferred | 0.6 | 0.5 | 1.6 | 1.5 | ||||||||||||
Net unrealized gains and losses on derivatives accounted | (0.2 | ) | 0.2 | (0.1 | ) | 0.2 | ||||||||||
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Total other comprehensive income (loss), net of tax (note 5) | 4.9 | (0.1 | ) | 25.3 | 56.8 | |||||||||||
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Total comprehensive income | $ | 95.7 | $ | 73.6 | $ | 256.2 | $ | 261.9 | ||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
Net income | $ | 133.2 | $ | 110.2 | $ | 247.8 | $ | 218.1 | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||||||||
Net actuarial loss and prior service credit related to pension and other postretirement plans | 1.1 | 1.3 | 2.9 | 3.0 | |||||||||||||||||||||||||||||||
Net unrealized gains and losses on debt securities available-for-sale | 28.6 | (6.6) | 57.6 | (44.3) | |||||||||||||||||||||||||||||||
Amortization of unrealized losses on debt securities transferred to held-to-maturity | 0.6 | 0.9 | 1.2 | 1.6 | |||||||||||||||||||||||||||||||
Net unrealized gains and losses on derivatives accounted for as cash flow hedges | 1.3 | (0.5) | 2.1 | (2.0) | |||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax (note 5) | 31.6 | (4.9) | 63.8 | (41.7) | |||||||||||||||||||||||||||||||
Total comprehensive income | $ | 164.8 | $ | 105.3 | $ | 311.6 | $ | 176.4 |
Nine months ended September 30, 2017 | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Unallocated ESOP Common Stock | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 244.1 | $ | 4.0 | $ | 5,446.1 | $ | 949.3 | $ | (144.6 | ) | $ | (195.0 | ) | $ | (1,162.0 | ) | $ | 5,141.9 | |||||||||||||
Net income | — | — | — | 230.9 | — | — | — | 230.9 | ||||||||||||||||||||||||
Total other comprehensive income, | — | — | — | — | — | 25.3 | — | 25.3 | ||||||||||||||||||||||||
Common stock issued in Suffolk | — | 0.2 | 484.6 | — | — | — | — | 484.8 | ||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | (169.3 | ) | — | — | — | (169.3 | ) | ||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | (10.5 | ) | — | — | — | (10.5 | ) | ||||||||||||||||||||||
Restricted stock and performance-based | — | — | 9.1 | — | — | — | (0.1 | ) | 9.0 | |||||||||||||||||||||||
Employee Stock Ownership Plan | — | — | — | (0.7 | ) | 5.5 | — | — | 4.8 | |||||||||||||||||||||||
Common stock repurchased and | — | — | — | (3.3 | ) | — | — | — | (3.3 | ) | ||||||||||||||||||||||
Stock option exercises | — | 0.1 | 32.4 | — | — | — | — | 32.5 | ||||||||||||||||||||||||
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Balance at September 30, 2017 | $ | 244.1 | $ | 4.3 | $ | 5,972.2 | $ | 996.4 | $ | (139.1 | ) | $ | (169.7 | ) | $ | (1,162.1 | ) | $ | 5,746.1 | |||||||||||||
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Nine months ended September 30, 2016 | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Unallocated ESOP Common Stock | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||
Balance at December 31, 2015 | $ | — | $ | 3.9 | $ | 5,337.7 | $ | 880.8 | $ | (151.8 | ) | $ | (177.2 | ) | $ | (1,161.8 | ) | $ | 4,731.6 | |||||||||||||
Net income | — | — | — | 205.1 | — | — | — | 205.1 | ||||||||||||||||||||||||
Total other comprehensive income, | — | — | — | — | — | 56.8 | — | 56.8 | ||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | (154.1 | ) | — | — | — | (154.1 | ) | ||||||||||||||||||||||
Restricted stock and performance-based | — | — | 7.1 | 0.1 | — | — | (0.2 | ) | 7.0 | |||||||||||||||||||||||
Employee Stock Ownership Plan | — | — | — | (1.4 | ) | 5.4 | — | — | 4.0 | |||||||||||||||||||||||
Common stock repurchased and | — | — | — | (3.2 | ) | — | — | — | (3.2 | ) | ||||||||||||||||||||||
Stock option exercises and related | — | 0.1 | 15.0 | — | — | — | — | 15.1 | ||||||||||||||||||||||||
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Balance at September 30, 2016 | $ | — | $ | 4.0 | $ | 5,359.8 | $ | 927.3 | $ | (146.4 | ) | $ | (120.4 | ) | $ | (1,162.0 | ) | $ | 4,862.3 | |||||||||||||
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Three months ended June 30, 2019 (in millions, except per common share data) | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Unallocated ESOP Common Stock | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 244.1 | $ | 4.7 | $ | 6,558.8 | $ | 1,328.6 | $ | (128.3) | $ | (224.6) | $ | (1,162.1) | $ | 6,621.2 | |||||||||||||||||||||||||||||||
Net income | — | — | — | 133.2 | — | — | — | 133.2 | |||||||||||||||||||||||||||||||||||||||
Total other comprehensive income, net of tax (note 5) | — | — | — | — | — | 31.6 | — | 31.6 | |||||||||||||||||||||||||||||||||||||||
Common stock issued in BSB Bancorp acquisition (note 2) | — | 0.2 | 324.3 | — | — | — | — | 324.5 | |||||||||||||||||||||||||||||||||||||||
Cash dividend on common stock ($0.1775 per share) | — | — | — | (69.8) | — | — | — | (69.8) | |||||||||||||||||||||||||||||||||||||||
Cash dividend on preferred stock | — | — | — | (3.5) | — | — | — | (3.5) | |||||||||||||||||||||||||||||||||||||||
Restricted stock and performance-based share awards | — | — | 3.9 | — | — | — | — | 3.9 | |||||||||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan common stock committed to be released (note 8) | — | — | — | (0.3) | 1.8 | — | — | 1.5 | |||||||||||||||||||||||||||||||||||||||
Common stock repurchased and retired upon vesting of restricted stock awards | — | — | — | (0.1) | — | — | — | (0.1) | |||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | 3.7 | — | — | — | — | 3.7 | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 244.1 | $ | 4.9 | $ | 6,890.7 | $ | 1,388.1 | $ | (126.5) | $ | (193.0) | $ | (1,162.1) | $ | 7,046.2 | |||||||||||||||||||||||||||||||
Six months ended June 30, 2019 (in millions, except per common share data) | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Unallocated ESOP Common Stock | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 244.1 | $ | 4.7 | $ | 6,549.3 | $ | 1,284.8 | $ | (130.1) | $ | (256.8) | $ | (1,162.1) | $ | 6,533.9 | |||||||||||||||||||||||||||||||
Net income | — | — | — | 247.8 | — | — | — | 247.8 | |||||||||||||||||||||||||||||||||||||||
Total other comprehensive income, net of tax (note 5) | — | — | — | — | — | 63.8 | — | 63.8 | |||||||||||||||||||||||||||||||||||||||
Common stock issued in BSB Bancorp acquisition (note 2) | — | 0.2 | 324.3 | — | — | — | — | 324.5 | |||||||||||||||||||||||||||||||||||||||
Cash dividends on common stock ($0.3525 per share) | — | — | — | (135.0) | — | — | — | (135.0) | |||||||||||||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | (7.0) | — | — | — | (7.0) | |||||||||||||||||||||||||||||||||||||||
Restricted stock and performance-based share awards | — | — | 4.9 | — | — | — | — | 4.9 | |||||||||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan common stock committed to be released (note 8) | — | — | — | (0.7) | 3.6 | — | — | 2.9 | |||||||||||||||||||||||||||||||||||||||
Common stock repurchased and retired upon vesting of restricted stock awards | — | — | — | (1.8) | — | — | — | (1.8) | |||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | 12.2 | — | — | — | — | 12.2 | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 244.1 | $ | 4.9 | $ | 6,890.7 | $ | 1,388.1 | $ | (126.5) | $ | (193.0) | $ | (1,162.1) | $ | 7,046.2 | |||||||||||||||||||||||||||||||
Three months ended June 30, 2018 (in millions, except per common share data) | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Unallocated ESOP Common Stock | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2018 | $ | 244.1 | $ | 4.4 | $ | 6,029.0 | $ | 1,121.4 | $ | (135.5) | $ | (255.8) | $ | (1,162.1) | $ | 5,845.5 | |||||||||||||||||||||||||||||||
Net income | — | — | — | 110.2 | — | — | — | 110.2 | |||||||||||||||||||||||||||||||||||||||
Total other comprehensive loss, net of tax (note 5) | — | — | — | — | — | (4.9) | — | (4.9) | |||||||||||||||||||||||||||||||||||||||
Cash dividend on common stock ($0.1750 per share) | — | — | — | (59.9) | — | — | — | (59.9) | |||||||||||||||||||||||||||||||||||||||
Cash dividend on preferred stock | — | — | — | (3.5) | — | — | — | (3.5) | |||||||||||||||||||||||||||||||||||||||
Restricted stock and performance-based share awards | — | — | 3.6 | — | — | — | 3.6 | ||||||||||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan common stock committed to be released (note 8) | — | — | — | (0.2) | 1.8 | — | — | 1.6 | |||||||||||||||||||||||||||||||||||||||
Common stock repurchased and retired upon vesting of restricted stock awards | — | — | — | (0.1) | — | — | — | (0.1) | |||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | 7.7 | — | — | — | — | 7.7 | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 244.1 | $ | 4.4 | $ | 6,040.3 | $ | 1,167.9 | $ | (133.7) | $ | (260.7) | $ | (1,162.1) | $ | 5,900.2 | |||||||||||||||||||||||||||||||
Six months ended June 30, 2018 (in millions, except per common share data) | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Unallocated ESOP Common Stock | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 244.1 | $ | 4.4 | $ | 6,012.3 | $ | 1,040.2 | $ | (137.3) | $ | (181.7) | $ | (1,162.1) | $ | 5,819.9 | |||||||||||||||||||||||||||||||
Net income | — | — | — | 218.1 | — | — | — | 218.1 | |||||||||||||||||||||||||||||||||||||||
Total other comprehensive loss, net of tax (note 5) | — | — | — | — | — | (41.7) | — | (41.7) | |||||||||||||||||||||||||||||||||||||||
Cash dividends on common stock ($0.3475 per share) | — | — | — | (118.7) | — | — | — | (118.7) | |||||||||||||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | (7.0) | — | — | — | (7.0) | |||||||||||||||||||||||||||||||||||||||
Restricted stock and performance-based share awards | — | — | 7.4 | — | — | — | 7.4 | ||||||||||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan common stock committed to be released (note 8) | — | — | — | (0.3) | 3.6 | — | — | 3.3 | |||||||||||||||||||||||||||||||||||||||
Common stock repurchased and retired upon vesting of restricted stock awards | — | — | — | (2.3) | — | — | — | (2.3) | |||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | 20.6 | — | — | — | — | 20.6 | |||||||||||||||||||||||||||||||||||||||
Transition adjustments related to adoption of new accounting standards (note 5) | — | — | — | 37.9 | — | (37.3) | — | 0.6 | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 244.1 | $ | 4.4 | $ | 6,040.3 | $ | 1,167.9 | $ | (133.7) | $ | (260.7) | $ | (1,162.1) | $ | 5,900.2 |
Nine Months Ended September 30, | ||||||||
(in millions) | 2017 | 2016 | ||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 230.9 | $ | 205.1 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization of premises and equipment | 29.3 | 27.6 | ||||||
Expense related to operating leases | 26.3 | 28.0 | ||||||
Amortization of other acquisition-related intangible assets | 22.1 | 17.4 | ||||||
Provision for loan losses | 18.5 | 28.9 | ||||||
Expense related to share-based awards | 13.4 | 11.4 | ||||||
Employee Stock Ownership Plan common stock committed to be released | 4.8 | 4.0 | ||||||
Net security losses (gains) | 15.6 | (0.1 | ) | |||||
Net gains on sales of residential mortgage loans | (2.7 | ) | (3.7 | ) | ||||
Originations of loansheld-for-sale | (212.5 | ) | (296.1 | ) | ||||
Proceeds from sales of loansheld-for-sale | 239.5 | 287.8 | ||||||
Net increase in trading account securities | (1.5 | ) | (0.1 | ) | ||||
Excess income tax benefits from stock option exercises (note 14) | 1.3 | — | ||||||
Net changes in other assets and other liabilities | 15.3 | (23.8 | ) | |||||
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Net cash provided by operating activities | 400.3 | 286.4 | ||||||
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Cash Flows from Investing Activities: | ||||||||
Proceeds from principal repayments and maturities of securities available for sale | 456.1 | 680.2 | ||||||
Proceeds from sales of securities available for sale | 1,016.2 | 249.9 | ||||||
Proceeds from principal repayments and maturities of securities held to maturity | 92.1 | 83.6 | ||||||
Purchases of securities available for sale | (237.6 | ) | (1,228.3 | ) | ||||
Purchases of securities held to maturity | (1,235.9 | ) | (286.8 | ) | ||||
Net redemptions (purchases) of Federal Reserve Bank stock | 17.6 | (9.1 | ) | |||||
Net purchases of Federal Home Loan Bank stock | (19.9 | ) | (1.0 | ) | ||||
Proceeds from sales of loans | 8.4 | 2.8 | ||||||
Loan disbursements, net of principal collections | (325.4 | ) | (944.8 | ) | ||||
Purchases of loans | — | (30.6 | ) | |||||
Purchases of premises and equipment | (6.7 | ) | (14.9 | ) | ||||
Purchases of leased equipment | (20.5 | ) | (14.3 | ) | ||||
Proceeds from sales of real estate owned | 8.6 | 8.0 | ||||||
Return of premium on bank-owned life insurance, net | 1.7 | 1.7 | ||||||
Net cash acquired in acquisitions | 28.9 | — | ||||||
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Net cash used in investing activities | (216.4 | ) | (1,503.6 | ) | ||||
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Cash Flows from Financing Activities: | ||||||||
Net increase in deposits | 834.1 | 1,238.1 | ||||||
Net (decrease) increase in borrowings with terms of three months or less | (279.4 | ) | 131.2 | |||||
Repayments of borrowings with terms of more than three months | (356.1 | ) | (0.2 | ) | ||||
Repayment of notes and debentures | (125.0 | ) | — | |||||
Cash dividends paid on common stock | (169.3 | ) | (154.1 | ) | ||||
Cash dividends paid on preferred stock | (10.5 | ) | — | |||||
Common stock repurchases | (3.3 | ) | (3.2 | ) | ||||
Proceeds from stock options exercised | 28.1 | 10.4 | ||||||
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Net cash (used in) provided by financing activities | (81.4 | ) | 1,222.2 | |||||
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Net increase in cash and cash equivalents | 102.5 | 5.0 | ||||||
Cash and cash equivalents at beginning of period | 614.1 | 715.3 | ||||||
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Cash and cash equivalents at end of period | $ | 716.6 | $ | 720.3 | ||||
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Supplemental Information: | ||||||||
Interest payments | $ | 138.4 | $ | 114.3 | ||||
Unsettled purchases of securities | 110.5 | 9.7 | ||||||
Income tax payments | 100.1 | 86.1 | ||||||
Real estate properties acquired by foreclosure | 9.3 | 17.9 | ||||||
Assets acquired and liabilities assumed in acquisitions (note 2): | ||||||||
Non-cash assets, excluding goodwill and other acquisition-related intangibles | 2,642.1 | — | ||||||
Liabilities | 2,634.1 | — | ||||||
Common stock issued in Suffolk Bancorp acquisition | 484.8 | — |
Six Months Ended June 30, | |||||||||||||||||
(in millions) | 2019 | 2018 | |||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||
Net income | $ | 247.8 | $ | 218.1 | |||||||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||||||
Expense related to operating leases | 19.3 | 17.7 | |||||||||||||||
Depreciation and amortization of premises and equipment | 19.2 | 18.0 | |||||||||||||||
Amortization of other acquisition-related intangible assets | 14.7 | 10.0 | |||||||||||||||
Provision for loan losses | 13.2 | 11.9 | |||||||||||||||
Expense related to share-based awards | 11.2 | 10.2 | |||||||||||||||
Employee Stock Ownership Plan common stock committed to be released | 2.9 | 3.3 | |||||||||||||||
Net security gains | (0.1) | (0.1) | |||||||||||||||
Net gains on sales of acquired loans | (0.4) | — | |||||||||||||||
Net gains on sales of residential mortgage loans | (0.5) | (0.5) | |||||||||||||||
Originations of loans held-for-sale | (62.7) | (75.6) | |||||||||||||||
Proceeds from sales of loans held-for-sale | 65.3 | 75.6 | |||||||||||||||
Net increase in trading debt securities | (0.9) | — | |||||||||||||||
Excess income tax benefits from stock option exercises | 0.3 | 1.1 | |||||||||||||||
Net changes in other assets and other liabilities | (385.5) | (15.5) | |||||||||||||||
Net cash (used in) provided by operating activities | (56.2) | 274.2 | |||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||
Proceeds from sales of equity securities | 0.7 | — | |||||||||||||||
Proceeds from principal repayments and maturities of debt securities available-for-sale | 229.6 | 223.5 | |||||||||||||||
Proceeds from sales of debt securities available-for-sale | 311.8 | 0.5 | |||||||||||||||
Proceeds from principal repayments and maturities of debt securities held-to-maturity | 98.8 | 89.4 | |||||||||||||||
Purchases of debt securities available-for-sale | (184.4) | (412.4) | |||||||||||||||
Purchases of debt securities held-to-maturity | (119.0) | (213.1) | |||||||||||||||
Net redemptions (purchases) of Federal Reserve Bank stock | 60.9 | (0.5) | |||||||||||||||
Net purchases of Federal Home Loan Bank stock | (15.2) | (29.4) | |||||||||||||||
Proceeds from sales of loans | 19.7 | 2.9 | |||||||||||||||
Net principal (disbursements) collections of loans | (665.7) | 122.7 | |||||||||||||||
Purchases of loans | (27.6) | — | |||||||||||||||
Purchases of premises and equipment | (13.5) | (11.0) | |||||||||||||||
Purchases of leased equipment, net | (16.6) | (21.8) | |||||||||||||||
Proceeds from sales of real estate owned | 9.7 | 5.0 | |||||||||||||||
Return of premium on bank-owned life insurance, net | 1.2 | 0.3 | |||||||||||||||
Net cash acquired (paid) in acquisitions | 48.7 | (35.8) | |||||||||||||||
Net cash used in investing activities | (260.9) | (279.7) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||
Net increase (decrease) in deposits | 1,189.6 | (588.1) | |||||||||||||||
Net (decrease) increase in borrowings with terms of three months or less | (826.8) | 753.9 | |||||||||||||||
Repayments of borrowings with terms of more than three months | (61.7) | (216.6) | |||||||||||||||
Cash dividends paid on common stock | (135.0) | (118.7) | |||||||||||||||
Cash dividends paid on preferred stock | (7.0) | (7.0) | |||||||||||||||
Repurchases of common stock | (1.8) | (2.3) | |||||||||||||||
Proceeds from stock options exercised | 9.4 | 17.8 | |||||||||||||||
Contingent consideration payments | (0.9) | (0.3) | |||||||||||||||
Net cash provided by (used in) financing activities | 165.8 | (161.3) | |||||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (151.3) | (166.8) | |||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 932.0 | 882.6 | |||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 780.7 | $ | 715.8 | |||||||||||||
Supplemental Information: | |||||||||||||||||
Interest payments | $ | 230.5 | $ | 133.4 | |||||||||||||
Income taxes payments | 63.4 | 25.5 | |||||||||||||||
Significant non-cash transactions: | |||||||||||||||||
Right-of-use assets obtained in exchange for lessee operating lease liabilities | 11.5 | — | |||||||||||||||
Unsettled purchases of securities | 10.5 | 17.6 | |||||||||||||||
Real estate properties acquired by foreclosure | 4.9 | 3.9 | |||||||||||||||
Assets acquired and liabilities assumed in acquisitions: | |||||||||||||||||
Non-cash assets, excluding goodwill and other acquisition-related intangibles | 2,921.9 | 69.1 | |||||||||||||||
Liabilities | 2,862.2 | 1.4 |
NOTE 1. GENERAL
NOTE 1. GENERAL |
Note 1 to People’s United’s audited consolidated financial statements included in the Annual Report on Form10-K for the year ended December 31, 2016, as supplemented by the Quarterly Reports for the periods ended March 31, 2017 and June 30, 2017 and this Quarterly Report for the period ended September 30, 2017, provides disclosure of People’s United’s significant accounting policies.
People’s United holds ownership interests in limited partnerships formed to develop and operate affordable housing units for lower income tenants throughout its franchise area. The underlying partnerships, which are considered variable interest entities (“VIEs”), are not consolidated into the Company’s Consolidated Financial Statements. These investments have historically played a role in enabling People’s United Bank, National Association (the “Bank”) to meet its Community Reinvestment Act requirements while, at the same time, providing federal income tax credits.
Affordable housing investments, including all legally binding commitments to fund future investments, are included in other assets in the Consolidated Statements of Condition ($250.0 million and $195.2 million at September 30, 2017 and December 31, 2016, respectively). Included in other liabilities in the Consolidated Statements of Condition is a liability for all legally binding unfunded commitments to fund future investments ($109.6 million and $92.5 million at those dates). The cost of the Company’s investments is amortized on a straight-line basis over the period during which the related federal income tax credits are realized (generally ten years). Amortization expense, which is included as a component of income tax expense, totaled $4.2 million and $3.0 million for the three months ended September 30, 2017 and 2016, respectively, and $12.3 million and $8.9 million for the nine months ended September 30, 2017 and 2016, respectively.
Notesholds ownership interests in limited partnerships formed to develop and operate affordable housing units for lower income tenants throughout its franchise area. The underlying partnerships, which are considered variable interest entities, are not consolidated into the Company’s Consolidated Financial Statements. These investments have historically played a role in enabling People’s United Bank, National Association (the “Bank”) to meet its Community Reinvestment Act requirements while, at the same time, providing federal income tax credits.
NOTE 2 – ACQUISITIONS
LEAF Commercial Capital,of Condition ($333.1 million and $304.1 million at June 30, 2019 and December 31, 2018, respectively). Included in other liabilities in the Consolidated Statements of Condition is a liability for all legally binding unfunded commitments to fund future investments ($125.9 million and $119.7 million at those dates). The cost of the Company’s investments is amortized on a straight-line basis over the period during which the related federal income tax credits are realized (generally 10 years). Amortization expense, which is included as a component of income tax expense, totaled $6.6 million and $4.9 million for the three months ended June 30, 2019 and 2018, respectively, and $12.0 million and $9.2 million for the six months ended June 30, 2019 and 2018, respectively.
NOTE 2. ACQUISITIONS |
the greater Boston area.
services; (ii) costs associated with contract terminations and branch closings; and (iii) compensatory charges.
(in millions) | ||||
Assets: | ||||
Cash and cash equivalents | $ | 74.9 | ||
Loans | 717.9 | |||
Goodwill | 148.4 | |||
Trade name intangible | 0.9 | |||
Premises and equipment | 2.4 | |||
Non-compete agreement | 0.2 | |||
Other assets | 13.0 | |||
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Total assets | $ | 957.7 | ||
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Liabilities: | ||||
Borrowings | $ | 708.1 | ||
Other liabilities | 29.6 | |||
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Total liabilities | $ | 737.7 | ||
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Total purchase price | $ | 220.0 | ||
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Prior to the acquisition, and in connection with its previous revolving warehouse debt facilities and term note securitization transactions, LEAF established bankruptcy-remote special-purpose entities (“SPEs”) that issued term debt to institutional investors. These SPEs were VIEs, of which LEAF was deemed the primary beneficiary, and, therefore, the related financings were treated as secured borrowings with the SPEs consolidated in LEAF’s financial statements. Following the Company’s acquisition of LEAF, approximately $460 million of LEAF’s borrowings were repaid prior to September 30, 2017, including all but one remaining securitization, which can be repaid without penalty in 2018.
(in millions) | |||||
Assets: | |||||
Cash and cash equivalents | $ | 108.7 | |||
Securities | 175.8 | ||||
Loans | 2,642.9 | ||||
Goodwill | 144.9 | ||||
Core deposit intangible | 39.5 | ||||
Premises and equipment | 8.3 | ||||
Bank-owned life insurance | 36.8 | ||||
Other assets | 29.8 | ||||
Total assets | $ | 3,186.7 | |||
Liabilities: | |||||
Deposits | $ | 2,118.7 | |||
Borrowings | 696.6 | ||||
Other liabilities | 46.9 | ||||
Total liabilities | $ | 2,862.2 | |||
Total purchase price | $ | 324.5 | |||
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Suffolk Bancorp
Effective April 1, 2017, People’s United completed its acquisition of Suffolk Bancorp (“Suffolk”) based in Riverhead, New York. The fair value of the consideration transferred in the Suffolk acquisition totaled approximately $485 million and consisted of approximately 26.6 million shares of People’s United common stock. At the acquisition date, Suffolk operated 27 branches in the greater Long Island area.
The assets acquired and liabilities assumed in this transaction were recorded by People’s United at their estimated fair values as of the effective date and People’s United’s results of operations for the nine months ended September 30, 2017 include the results of Suffolk beginning with the effective date. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded as goodwill, which was allocated to the Commercial Banking and Retail Banking segments. Merger-related expenses recorded during the nine months ended September 30, 2017 and 2016 related to the Suffolk acquisition totaled $26.5 million and $1.9 million, respectively, including: (i) fees for investment advisory, legal, accounting and valuation services; (ii) costs associated with contract terminations and branch closings; and (iii) compensatory charges.
The acquisition-date estimated fair values of the assets acquired and liabilities assumed in the acquisition of Suffolk are summarized as follows:
(in millions) | ||||
Assets: | ||||
Cash and cash equivalents | $ | 174.0 | ||
Securities | 167.4 | |||
Loans | 1,617.5 | |||
Goodwill | 270.3 | |||
Core deposit intangible | 28.1 | |||
Premises and equipment | 40.4 | |||
Bank-owned life insurance | 54.1 | |||
Other real estate owned | 0.5 | |||
Other assets | 28.9 | |||
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Total assets | $ | 2,381.2 | ||
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Liabilities: | ||||
Deposits | $ | 1,852.4 | ||
Borrowings | 15.1 | |||
Other liabilities | 28.9 | |||
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Total liabilities | $ | 1,896.4 | ||
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Total purchase price | $ | 484.8 | ||
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Net deferred tax liabilities totaling $0.3 million were established in connection with recording the related purchase accounting adjustments (other than goodwill). Fair value adjustments to assets acquired (other than loans, see Note 4) and liabilities assumed are generally amortized on a straight-line basis over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
In the aggregate,
date.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Nine Months Ended September 30, | ||||||||
(in millions, except per common share data) | 2017 | 2016 | ||||||
Selected Financial Results: | ||||||||
Net interest income | $ | 835.9 | $ | 797.3 | ||||
Provision for loan losses | 18.5 | 28.9 | ||||||
Non-interest income | 275.5 | 275.5 | ||||||
Non-interest expense | 720.6 | 707.1 | ||||||
Net income | 258.0 | 227.7 | ||||||
Net income applicable to common shareholders | 247.5 | 227.7 | ||||||
Basic and diluted earnings per common share | $ | 0.73 | $ | 0.69 |
Six Months Ended June 30, | |||||||||||||||||
(in millions, except per common share data) | 2019 | 2018 | |||||||||||||||
Selected Financial Results: | |||||||||||||||||
Net interest income | $ | 696.0 | $ | 627.2 | |||||||||||||
Provision for loan losses | 13.2 | 11.9 | |||||||||||||||
Non-interest income | 202.2 | 187.9 | |||||||||||||||
Non-interest expense | 559.8 | 507.6 | |||||||||||||||
Net income | 257.5 | 231.7 | |||||||||||||||
Net income applicable to common shareholders | 250.5 | 224.7 | |||||||||||||||
Basic and diluted earnings per common share | $ | 0.64 | $ | 0.62 |
Recent acquisitions have been undertaken with the objective
NOTE 3. SECURITIES AND SHORT-TERM INVESTMENTS
NOTE 3. CASH AND CASH EQUIVALENTS AND SECURITIES |
As of September 30, 2017 (in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Securities available for sale: | ||||||||||||||||
Debt securities: | ||||||||||||||||
U.S. Treasury and agency | $ | 760.9 | $ | 0.1 | $ | (19.1 | ) | $ | 741.9 | |||||||
GSE (1) mortgage-backed securities | 2,450.1 | 11.5 | (15.0 | ) | 2,446.6 | |||||||||||
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Total debt securities | 3,211.0 | 11.6 | (34.1 | ) | 3,188.5 | |||||||||||
Equity securities (3) | 9.6 | — | (0.6 | ) | 9.0 | |||||||||||
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Total securities available for sale | $ | 3,220.6 | $ | 11.6 | $ | (34.7 | ) | $ | 3,197.5 | |||||||
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Securities held to maturity: | ||||||||||||||||
Debt securities: | ||||||||||||||||
State and municipal | $ | 1,999.2 | $ | 60.7 | $ | (8.5 | ) | $ | 2,051.4 | |||||||
GSE mortgage-backed securities | 1,344.6 | 1.5 | (6.5 | ) | 1,339.6 | |||||||||||
Corporate | 42.3 | 0.8 | — | 43.1 | ||||||||||||
Other | 1.5 | — | — | 1.5 | ||||||||||||
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Total securities held to maturity | $ | 3,387.6 | $ | 63.0 | $ | (15.0 | ) | $ | 3,435.6 | |||||||
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As of December 31, 2016 (in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Securities available for sale: | ||||||||||||||||
Debt securities: | ||||||||||||||||
U.S. Treasury and agency | $ | 889.9 | $ | 0.3 | $ | (30.5 | ) | $ | 859.7 | |||||||
GSE mortgage-backed securities | 3,573.1 | 15.0 | (38.1 | ) | 3,550.0 | |||||||||||
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Total debt securities | 4,463.0 | 15.3 | (68.6 | ) | 4,409.7 | |||||||||||
Equity securities | 0.2 | — | — | 0.2 | ||||||||||||
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Total securities available for sale | $ | 4,463.2 | $ | 15.3 | $ | (68.6 | ) | $ | 4,409.9 | |||||||
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Securities held to maturity: | ||||||||||||||||
Debt securities: | ||||||||||||||||
State and municipal | $ | 1,499.1 | $ | 33.9 | $ | (23.5 | ) | $ | 1,509.5 | |||||||
GSE mortgage-backed securities | 500.8 | — | (3.2 | ) | 497.6 | |||||||||||
Corporate | 4.0 | — | — | 4.0 | ||||||||||||
Other | 1.5 | — | — | 1.5 | ||||||||||||
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Total securities held to maturity | $ | 2,005.4 | $ | 33.9 | $ | (26.7 | ) | $ | 2,012.6 | |||||||
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People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Securities available for sale with a fair value of $2.92 billion and $1.83 billion at September
As of June 30, 2019 (in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Debt securities available-for-sale: | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 691.7 | $ | 0.3 | $ | (5.4) | $ | 686.6 | |||||||||||||||
GSE (1) mortgage-backed securities | 2,272.6 | 20.9 | (8.9) | 2,284.6 | |||||||||||||||||||
Total debt securities available-for-sale | $ | 2,964.3 | $ | 21.2 | $ | (14.3) | $ | 2,971.2 | |||||||||||||||
Debt securities held-to-maturity: | |||||||||||||||||||||||
State and municipal | $ | 2,421.3 | $ | 118.5 | $ | (0.3) | $ | 2,539.5 | |||||||||||||||
GSE mortgage-backed securities | 1,309.8 | 9.0 | (1.8) | 1,317.0 | |||||||||||||||||||
Corporate | 74.9 | 1.0 | (0.1) | 75.8 | |||||||||||||||||||
Other | 1.5 | — | — | 1.5 | |||||||||||||||||||
Total debt securities held-to-maturity | $ | 3,807.5 | $ | 128.5 | $ | (2.2) | $ | 3,933.8 |
As of December 31, 2018 (in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Debt securities available-for-sale: | |||||||||||||||||||||||
U.S. Treasury and agency | $ | 699.0 | $ | 0.1 | $ | (21.1) | $ | 678.0 | |||||||||||||||
GSE mortgage-backed securities | 2,486.6 | 4.6 | (48.2) | 2,443.0 | |||||||||||||||||||
Total debt securities available-for-sale | $ | 3,185.6 | $ | 4.7 | $ | (69.3) | $ | 3,121.0 | |||||||||||||||
Debt securities held-to-maturity: | |||||||||||||||||||||||
State and municipal | $ | 2,352.4 | $ | 35.4 | $ | (18.4) | $ | 2,369.4 | |||||||||||||||
GSE mortgage-backed securities | 1,367.5 | — | (33.2) | 1,334.3 | |||||||||||||||||||
Corporate | 70.9 | 0.5 | (0.7) | 70.7 | |||||||||||||||||||
Other | 1.5 | — | — | 1.5 | |||||||||||||||||||
Total debt securities held-to-maturity | $ | 3,792.3 | $ | 35.9 | $ | (52.3) | $ | 3,775.9 |
Available for Sale | Held to Maturity | |||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
U.S. Treasury and agency: | ||||||||||||||||
Within 1 year | $ | 1.0 | $ | 1.0 | $ | — | $ | — | ||||||||
After 1 but within 5 years | 361.3 | 355.0 | — | — | ||||||||||||
After 5 but within 10 years | 398.6 | 385.9 | — | — | ||||||||||||
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Total | 760.9 | 741.9 | — | — | ||||||||||||
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GSE mortgage-backed securities and CMOs: | ||||||||||||||||
After 1 but within 5 years | — | — | 69.4 | 69.4 | ||||||||||||
After 5 but within 10 years | 604.6 | 613.9 | 834.3 | 830.4 | ||||||||||||
After 10 years | 1,845.5 | 1,832.7 | 440.9 | 439.8 | ||||||||||||
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Total | 2,450.1 | 2,446.6 | 1,344.6 | 1,339.6 | ||||||||||||
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State and municipal: | ||||||||||||||||
Within 1 year | — | — | 18.7 | 18.7 | ||||||||||||
After 1 but within 5 years | — | — | 114.1 | 117.4 | ||||||||||||
After 5 but within 10 years | — | — | 343.2 | 363.2 | ||||||||||||
After 10 years | — | — | 1,523.2 | 1,552.1 | ||||||||||||
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Total | — | — | 1,999.2 | 2,051.4 | ||||||||||||
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Corporate: | ||||||||||||||||
After 1 but within 5 years | — | — | 5.0 | 5.0 | ||||||||||||
After 5 but within 10 years | — | — | 37.3 | 38.1 | ||||||||||||
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Total | — | — | 42.3 | 43.1 | ||||||||||||
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Other: | ||||||||||||||||
After 1 but within 5 years | — | — | 1.5 | 1.5 | ||||||||||||
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Total | — | — | 1.5 | 1.5 | ||||||||||||
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Total: | ||||||||||||||||
Within 1 year | 1.0 | 1.0 | 18.7 | 18.7 | ||||||||||||
After 1 but within 5 years | 361.3 | 355.0 | 190.0 | 193.3 | ||||||||||||
After 5 but within 10 years | 1,003.2 | 999.8 | 1,214.8 | 1,231.7 | ||||||||||||
After 10 years | 1,845.5 | 1,832.7 | 1,964.1 | 1,991.9 | ||||||||||||
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Total | $ | 3,211.0 | $ | 3,188.5 | $ | 3,387.6 | $ | 3,435.6 | ||||||||
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Available-for-Sale | Held-to-Maturity | ||||||||||||||||||||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
U.S. Treasury and agency: | |||||||||||||||||||||||||||||||||||
Within 1 year | $ | 159.4 | $ | 159.3 | $ | — | $ | — | |||||||||||||||||||||||||||
After 1 but within 5 years | 532.3 | 527.3 | — | — | |||||||||||||||||||||||||||||||
Total | 691.7 | 686.6 | — | — | |||||||||||||||||||||||||||||||
GSE mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Within 1 year | — | — | 2.8 | 2.7 | |||||||||||||||||||||||||||||||
After 1 but within 5 years | 76.6 | 78.2 | 467.8 | 473.0 | |||||||||||||||||||||||||||||||
After 5 but within 10 years | 783.4 | 798.1 | 517.2 | 520.8 | |||||||||||||||||||||||||||||||
After 10 years | 1,412.6 | 1,408.3 | 322.0 | 320.5 | |||||||||||||||||||||||||||||||
Total | 2,272.6 | 2,284.6 | 1,309.8 | 1,317.0 | |||||||||||||||||||||||||||||||
State and municipal: | |||||||||||||||||||||||||||||||||||
Within 1 year | — | — | 14.0 | 14.0 | |||||||||||||||||||||||||||||||
After 1 but within 5 years | — | — | 196.8 | 204.6 | |||||||||||||||||||||||||||||||
After 5 but within 10 years | — | — | 391.5 | 413.8 | |||||||||||||||||||||||||||||||
After 10 years | — | — | 1,819.0 | 1,907.1 | |||||||||||||||||||||||||||||||
Total | — | — | 2,421.3 | 2,539.5 | |||||||||||||||||||||||||||||||
Corporate: | |||||||||||||||||||||||||||||||||||
Within 1 year | — | — | 5.0 | 5.0 | |||||||||||||||||||||||||||||||
After 5 but within 10 years | — | — | 69.9 | 70.8 | |||||||||||||||||||||||||||||||
Total | — | — | 74.9 | 75.8 | |||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||
Within 1 year | — | — | 1.5 | 1.5 | |||||||||||||||||||||||||||||||
Total | — | — | 1.5 | 1.5 | |||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||
Within 1 year | 159.4 | 159.3 | 23.3 | 23.2 | |||||||||||||||||||||||||||||||
After 1 but within 5 years | 608.9 | 605.5 | 664.6 | 677.6 | |||||||||||||||||||||||||||||||
After 5 but within 10 years | 783.4 | 798.1 | 978.6 | 1,005.4 | |||||||||||||||||||||||||||||||
After 10 years | 1,412.6 | 1,408.3 | 2,141.0 | 2,227.6 | |||||||||||||||||||||||||||||||
Total | $ | 2,964.3 | $ | 2,971.2 | $ | 3,807.5 | $ | 3,933.8 |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Continuous Unrealized Loss Position | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months Or Longer | Total | ||||||||||||||||||||||
As of September 30, 2017 (in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
GSE mortgage-backed securities and CMOs | $ | 1,675.6 | $ | (12.1 | ) | $ | 133.9 | $ | (2.9 | ) | $ | 1,809.5 | $ | (15.0 | ) | |||||||||
U.S. Treasury and agency | 206.6 | (3.0 | ) | 530.1 | (16.1 | ) | 736.7 | (19.1 | ) | |||||||||||||||
Equity securities | 9.0 | (0.6 | ) | — | — | 9.0 | (0.6 | ) | ||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||||||
GSE mortgage-backed securities | 1,029.5 | (6.5 | ) | — | — | 1,029.5 | (6.5 | ) | ||||||||||||||||
State and municipal | 270.3 | (1.7 | ) | 207.5 | (6.8 | ) | 477.8 | (8.5 | ) | |||||||||||||||
Corporate | 2.8 | — | — | — | 2.8 | — | ||||||||||||||||||
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Total | $ | 3,193.8 | $ | (23.9 | ) | $ | 871.5 | $ | (25.8 | ) | $ | 4,065.3 | $ | (49.7 | ) | |||||||||
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Continuous Unrealized Loss Position | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months Or Longer | Total | ||||||||||||||||||||||
As of December 31, 2016 (in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
GSE mortgage-backed securities and CMOs | $ | 2,339.6 | $ | (26.6 | ) | $ | 396.9 | $ | (11.5 | ) | $ | 2,736.5 | $ | (38.1 | ) | |||||||||
U.S. Treasury and agency | 828.3 | (30.5 | ) | — | — | 828.3 | (30.5 | ) | ||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||||||
GSE mortgage-backed securities | 497.6 | (3.2 | ) | — | — | 497.6 | (3.2 | ) | ||||||||||||||||
State and municipal | 581.7 | (23.5 | ) | — | — | 581.7 | (23.5 | ) | ||||||||||||||||
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Total | $ | 4,247.2 | $ | (83.8 | ) | $ | 396.9 | $ | (11.5 | ) | $ | 4,644.1 | $ | (95.3 | ) | |||||||||
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Continuous Unrealized Loss Position | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months Or Longer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2019 (in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GSE mortgage-backed securities | $ | — | $ | — | $ | 1,223.8 | $ | (8.9) | $ | 1,223.8 | $ | (8.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency | — | — | 668.6 | (5.4) | 668.6 | (5.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities available-for-sale | $ | — | $ | — | $ | 1,892.4 | $ | (14.3) | $ | 1,892.4 | $ | (14.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GSE mortgage-backed securities | $ | 61.8 | $ | (0.2) | $ | 331.0 | $ | (1.6) | $ | 392.8 | $ | (1.8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and municipal | 8.0 | — | 39.0 | (0.3) | 47.0 | (0.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | 8.5 | (0.1) | 8.5 | (0.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities held-to-maturity | $ | 69.8 | $ | (0.2) | $ | 378.5 | $ | (2.0) | $ | 448.3 | $ | (2.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Continuous Unrealized Loss Position | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months Or Longer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2018 (in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GSE mortgage-backed securities | $ | 132.4 | $ | (0.5) | $ | 1,656.3 | $ | (47.7) | $ | 1,788.7 | $ | (48.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency | — | — | 656.2 | (21.1) | 656.2 | (21.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities available-for-sale | $ | 132.4 | $ | (0.5) | $ | 2,312.5 | $ | (68.8) | $ | 2,444.9 | $ | (69.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GSE mortgage-backed securities | $ | — | $ | — | $ | 1,334.3 | $ | (33.2) | $ | 1,334.3 | $ | (33.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and municipal | 113.4 | (0.7) | 697.6 | (17.7) | 811.0 | (18.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 31.2 | (0.6) | 2.7 | (0.1) | 33.9 | (0.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities held-to-maturity | $ | 144.6 | $ | (1.3) | $ | 2,034.6 | $ | (51.0) | $ | 2,179.2 | $ | (52.3) |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
2018.
Income) relating to the change in fair value of its equity securities during the respective periods.
Included in short-term investments are interest-bearing deposits at theFRB-NY totaling $259.4 million at September 30, 2017 and $169.8 million at December 31, 2016. These deposits represent an alternative
NOTE 4. LOANS
Consolidated Financial Statements – (Unaudited)
NOTE 4. LOANS |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
2019.
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
(in millions) | Originated | Acquired | Total | Originated | Acquired | Total | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial real estate | $ | 10,194.1 | $ | 986.4 | $ | 11,180.5 | $ | 10,012.6 | $ | 234.7 | $ | 10,247.3 | ||||||||||||
Commercial and industrial | 7,971.3 | 653.4 | 8,624.7 | 7,939.0 | 186.1 | 8,125.1 | ||||||||||||||||||
Equipment financing | 3,039.1 | 666.5 | 3,705.6 | 3,020.9 | 11.6 | 3,032.5 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Commercial Portfolio | 21,204.5 | 2,306.3 | 23,510.8 | 20,972.5 | 432.4 | 21,404.9 | ||||||||||||||||||
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|
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| |||||||||||||
Retail: | ||||||||||||||||||||||||
Residential mortgage: | ||||||||||||||||||||||||
Adjustable-rate | 5,800.9 | 147.5 | 5,948.4 | 5,453.8 | 95.3 | 5,549.1 | ||||||||||||||||||
Fixed-rate | 706.7 | 125.9 | 832.6 | 613.5 | 54.1 | 667.6 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total residential mortgage | 6,507.6 | 273.4 | 6,781.0 | 6,067.3 | 149.4 | 6,216.7 | ||||||||||||||||||
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|
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|
| |||||||||||||
Home equity and other consumer: | ||||||||||||||||||||||||
Home equity | 1,981.8 | 59.7 | 2,041.5 | 2,044.9 | 27.7 | 2,072.6 | ||||||||||||||||||
Other consumer | 47.3 | 3.9 | 51.2 | 50.0 | 0.7 | 50.7 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total home equity and other consumer | 2,029.1 | 63.6 | 2,092.7 | 2,094.9 | 28.4 | 2,123.3 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Retail Portfolio | 8,536.7 | 337.0 | 8,873.7 | 8,162.2 | 177.8 | 8,340.0 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans | $ | 29,741.2 | $ | 2,643.3 | $ | 32,384.5 | $ | 29,134.7 | $ | 610.2 | $ | 29,744.9 | ||||||||||||
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|
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|
|
|
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Originated | Acquired | Total | Originated | Acquired | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 9,683.2 | $ | 2,547.5 | $ | 12,230.7 | $ | 9,798.5 | $ | 1,851.1 | $ | 11,649.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 9,242.4 | 879.4 | 10,121.8 | 8,292.3 | 796.6 | 9,088.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment financing | 4,309.8 | 301.2 | 4,611.0 | 3,937.7 | 401.5 | 4,339.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Commercial Portfolio | 23,235.4 | 3,728.1 | 26,963.5 | 22,028.5 | 3,049.2 | 25,077.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustable-rate | 5,705.2 | 1,474.3 | 7,179.5 | 5,854.1 | 807.9 | 6,662.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed-rate | 1036.6 | 1316.5 | 2353.1 | 935.1 | 557.1 | 1492.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential mortgage | 6,741.8 | 2,790.8 | 9,532.6 | 6,789.2 | 1,365.0 | 8,154.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity and other consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 1,713.0 | 296.5 | 2,009.5 | 1,789.5 | 173.0 | 1,962.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer | 41.0 | 10.1 | 51.1 | 42.8 | 4.2 | 47.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total home equity and other consumer | 1,754.0 | 306.6 | 2,060.6 | 1,832.3 | 177.2 | 2,009.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Retail Portfolio | 8,495.8 | 3,097.4 | 11,593.2 | 8,621.5 | 1,542.2 | 10,163.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | 31,731.2 | $ | 6,825.5 | $ | 38,556.7 | $ | 30,650.0 | $ | 4,591.4 | $ | 35,241.4 |
2018.
Three months ended | Commercial | Retail | ||||||||||||||||||||||||||
September 30, 2017 (in millions) | Originated | Acquired | Total | Originated | Acquired | Total | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 198.3 | $ | 3.6 | $ | 201.9 | $ | 29.6 | $ | 0.1 | $ | 29.7 | $ | 231.6 | ||||||||||||||
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Charge-offs | (4.0 | ) | (1.0 | ) | (5.0 | ) | (1.8 | ) | — | (1.8 | ) | (6.8 | ) | |||||||||||||||
Recoveries | 0.9 | 0.1 | 1.0 | 0.6 | — | 0.6 | 1.6 | |||||||||||||||||||||
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Net loan charge-offs | (3.1 | ) | (0.9 | ) | (4.0 | ) | (1.2 | ) | — | (1.2 | ) | (5.2 | ) | |||||||||||||||
Provision for loan losses | 4.3 | 1.3 | 5.6 | 1.3 | 0.1 | 1.4 | 7.0 | |||||||||||||||||||||
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Balance at end of period | $ | 199.5 | $ | 4.0 | $ | 203.5 | $ | 29.7 | $ | 0.2 | $ | 29.9 | $ | 233.4 | ||||||||||||||
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Nine months ended | Commercial | Retail | ||||||||||||||||||||||||||
September 30, 2017 (in millions) | Originated | Acquired | Total | Originated | Acquired | Total | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 198.8 | $ | 6.1 | $ | 204.9 | $ | 24.2 | $ | 0.2 | $ | 24.4 | $ | 229.3 | ||||||||||||||
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Charge-offs | (12.0 | ) | (2.9 | ) | (14.9 | ) | (5.1 | ) | — | (5.1 | ) | (20.0 | ) | |||||||||||||||
Recoveries | 3.8 | 0.1 | 3.9 | 1.7 | — | 1.7 | 5.6 | |||||||||||||||||||||
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Net loan charge-offs | (8.2 | ) | (2.8 | ) | (11.0 | ) | (3.4 | ) | — | (3.4 | ) | (14.4 | ) | |||||||||||||||
Provision for loan losses | 8.9 | 0.7 | 9.6 | 8.9 | — | 8.9 | 18.5 | |||||||||||||||||||||
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Balance at end of period | $ | 199.5 | $ | 4.0 | $ | 203.5 | $ | 29.7 | $ | 0.2 | $ | 29.9 | $ | 233.4 | ||||||||||||||
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Three months ended | Commercial | Retail | ||||||||||||||||||||||||||
September 30, 2016 (in millions) | Originated | Acquired | Total | Originated | Acquired | Total | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 189.7 | $ | 7.2 | $ | 196.9 | $ | 23.3 | $ | 0.2 | $ | 23.5 | $ | 220.4 | ||||||||||||||
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Charge-offs | (2.7 | ) | (0.1 | ) | (2.8 | ) | (1.1 | ) | — | (1.1 | ) | (3.9 | ) | |||||||||||||||
Recoveries | 0.9 | — | 0.9 | 0.5 | — | 0.5 | 1.4 | |||||||||||||||||||||
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Net loan charge-offs | (1.8 | ) | (0.1 | ) | (1.9 | ) | (0.6 | ) | — | (0.6 | ) | (2.5 | ) | |||||||||||||||
Provision for loan losses | 7.1 | — | 7.1 | 1.3 | — | 1.3 | 8.4 | |||||||||||||||||||||
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Balance at end of period | $ | 195.0 | $ | 7.1 | $ | 202.1 | $ | 24.0 | $ | 0.2 | $ | 24.2 | $ | 226.3 | ||||||||||||||
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Nine months ended | Commercial | Retail | ||||||||||||||||||||||||||
September 30, 2016 (in millions) | Originated | Acquired | Total | Originated | Acquired | Total | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 181.8 | $ | 7.9 | $ | 189.7 | $ | 21.1 | $ | 0.2 | $ | 21.3 | $ | 211.0 | ||||||||||||||
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Charge-offs | (10.7 | ) | (0.4 | ) | (11.1 | ) | (6.6 | ) | — | (6.6 | ) | (17.7 | ) | |||||||||||||||
Recoveries | 1.6 | — | 1.6 | 2.5 | — | 2.5 | 4.1 | |||||||||||||||||||||
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Net loan charge-offs | (9.1 | ) | (0.4 | ) | (9.5 | ) | (4.1 | ) | — | (4.1 | ) | (13.6 | ) | |||||||||||||||
Provision for loan losses | 22.3 | (0.4 | ) | 21.9 | 7.0 | — | 7.0 | 28.9 | ||||||||||||||||||||
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Balance at end of period | $ | 195.0 | $ | 7.1 | $ | 202.1 | $ | 24.0 | $ | 0.2 | $ | 24.2 | $ | 226.3 | ||||||||||||||
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Three months ended | Commercial | Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 (in millions) | Originated | Acquired | Total | Originated | Acquired | Total | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 205.2 | $ | 3.8 | $ | 209.0 | $ | 31.7 | $ | 0.2 | $ | 31.9 | $ | 240.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (3.3) | (2.9) | (6.2) | (1.1) | — | (1.1) | (7.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 1.4 | 0.6 | 2.0 | 0.8 | — | 0.8 | 2.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loan charge-offs | (1.9) | (2.3) | (4.2) | (0.3) | — | (0.3) | (4.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 7.6 | 2.2 | 9.8 | (2.2) | — | (2.2) | 7.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 210.9 | $ | 3.7 | $ | 214.6 | $ | 29.2 | $ | 0.2 | $ | 29.4 | $ | 244.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | Commercial | Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 (in millions) | Originated | Acquired | Total | Originated | Acquired | Total | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 205.6 | $ | 3.9 | $ | 209.5 | $ | 30.7 | $ | 0.2 | $ | 30.9 | $ | 240.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (7.8) | (4.8) | (12.6) | (2.2) | — | (2.2) | (14.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 2.6 | 0.8 | 3.4 | 1.8 | — | 1.8 | 5.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loan charge-offs | (5.2) | (4.0) | (9.2) | (0.4) | — | (0.4) | (9.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 10.5 | 3.8 | 14.3 | (1.1) | — | (1.1) | 13.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 210.9 | $ | 3.7 | $ | 214.6 | $ | 29.2 | $ | 0.2 | $ | 29.4 | $ | 244.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Commercial | Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 (in millions) | Originated | Acquired | Total | Originated | Acquired | Total | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 200.2 | $ | 3.8 | $ | 204.0 | $ | 31.1 | $ | 0.2 | $ | 31.3 | $ | 235.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (3.8) | (2.5) | (6.3) | (0.9) | — | (0.9) | (7.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 1.0 | 0.3 | 1.3 | 0.9 | — | 0.9 | 2.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loan charge-offs | (2.8) | (2.2) | (5.0) | — | — | — | (5.0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 4.6 | 2.2 | 6.8 | (0.3) | — | (0.3) | 6.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 202.0 | $ | 3.8 | $ | 205.8 | $ | 30.8 | $ | 0.2 | $ | 31.0 | $ | 236.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | Commercial | Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 (in millions) | Originated | Acquired | Total | Originated | Acquired | Total | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 201.1 | $ | 3.4 | $ | 204.5 | $ | 29.7 | $ | 0.2 | $ | 29.9 | $ | 234.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (7.2) | (4.3) | (11.5) | (1.9) | — | (1.9) | (13.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 2.0 | 0.6 | 2.6 | 1.3 | — | 1.3 | 3.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loan charge-offs | (5.2) | (3.7) | (8.9) | (0.6) | — | (0.6) | (9.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 6.1 | 4.1 | 10.2 | 1.7 | — | 1.7 | 11.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 202.0 | $ | 3.8 | $ | 205.8 | $ | 30.8 | $ | 0.2 | $ | 31.0 | $ | 236.8 |
Originated Loans | Originated Loans | |||||||||||||||||||||||||||||||
As of | Individually Evaluated | Collectively Evaluated | ||||||||||||||||||||||||||||||
September 30, 2017 | for Impairment | for Impairment | Acquired Loans (1) | Total | ||||||||||||||||||||||||||||
(in millions) | Portfolio | Allowance | Portfolio | Allowance | Portfolio | Allowance | Portfolio | Allowance | ||||||||||||||||||||||||
Commercial | $ | 172.5 | $ | 5.7 | $ | 21,032.0 | $ | 193.8 | $ | 2,306.3 | $ | 4.0 | $ | 23,510.8 | $ | 203.5 | ||||||||||||||||
Retail | 94.3 | 2.4 | 8,442.4 | 27.3 | 337.0 | 0.2 | 8,873.7 | 29.9 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | $ | 266.8 | $ | 8.1 | $ | 29,474.4 | $ | 221.1 | $ | 2,643.3 | $ | 4.2 | $ | 32,384.5 | $ | 233.4 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Originated Loans | Originated Loans | |||||||||||||||||||||||||||||||
As of | Individually Evaluated | Collectively Evaluated | ||||||||||||||||||||||||||||||
December 31, 2016 | for Impairment | for Impairment | Acquired Loans (1) | Total | ||||||||||||||||||||||||||||
(in millions) | Portfolio | Allowance | Portfolio | Allowance | Portfolio | Allowance | Portfolio | Allowance | ||||||||||||||||||||||||
Commercial | $ | 161.8 | $ | 5.8 | $ | 20,810.7 | $ | 193.0 | $ | 432.4 | $ | 6.1 | $ | 21,404.9 | $ | 204.9 | ||||||||||||||||
Retail | 91.8 | 3.2 | 8,070.4 | 21.0 | 177.8 | 0.2 | 8,340.0 | 24.4 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | $ | 253.6 | $ | 9.0 | $ | 28,881.1 | $ | 214.0 | $ | 610.2 | $ | 6.3 | $ | 29,744.9 | $ | 229.3 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial | Retail | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2019 (in millions) | Portfolio | Allowance | Portfolio | Allowance | Portfolio | Allowance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Originated loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 21,476.4 | $ | 200.6 | $ | 10,064.3 | $ | 27.2 | $ | 31,540.7 | $ | 227.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 101.2 | 10.3 | 89.3 | 2.0 | 190.5 | 12.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PCI (1) | 234.3 | 2.2 | 82.8 | 0.2 | 317.1 | 2.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased performing: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 5,148.0 | 1.5 | 1,351.1 | — | 6,499.1 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 3.6 | — | 5.7 | — | 9.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 26,963.5 | $ | 214.6 | $ | 11,593.2 | $ | 29.4 | $ | 38,556.7 | $ | 244.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Retail | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2018 (in millions) | Portfolio | Allowance | Portfolio | Allowance | Portfolio | Allowance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Originated loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 21,900.1 | $ | 198.9 | $ | 8,535.0 | $ | 28.4 | $ | 30,435.1 | $ | 227.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 128.4 | 6.7 | 86.5 | 2.3 | 214.9 | 9.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PCI (1) | 300.3 | 2.2 | 99.6 | 0.1 | 399.9 | 2.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased performing: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 2,744.4 | 1.7 | 1,439.1 | — | 4,183.5 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 4.5 | — | 3.5 | 0.1 | 8.0 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 25,077.7 | $ | 209.5 | $ | 10,163.7 | $ | 30.9 | $ | 35,241.4 | $ | 240.4 |
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Commercial: | ||||||||
Commercial real estate | $ | 36.7 | $ | 22.3 | ||||
Commercial and industrial | 34.9 | 41.5 | ||||||
Equipment financing | 54.1 | 39.4 | ||||||
|
|
|
| |||||
Total (1) | 125.7 | 103.2 | ||||||
|
|
|
| |||||
Retail: | ||||||||
Residential mortgage | 33.8 | 27.4 | ||||||
Home equity | 14.8 | 17.4 | ||||||
Other consumer | — | — | ||||||
|
|
|
| |||||
Total (2) | 48.6 | 44.8 | ||||||
|
|
|
| |||||
Total | $ | 174.3 | $ | 148.0 | ||||
|
|
|
|
June 30, 2019 | December 31, 2018 | ||||||||||
(in millions) | |||||||||||
Commercial: | |||||||||||
Commercial real estate | $ | 23.2 | $ | 33.5 | |||||||
Commercial and industrial | 45.4 | 38.0 | |||||||||
Equipment financing | 42.7 | 42.0 | |||||||||
Total (1) | 111.3 | 113.5 | |||||||||
Retail: | |||||||||||
Residential mortgage | 38.4 | 38.9 | |||||||||
Home equity | 14.7 | 15.3 | |||||||||
Other consumer | — | — | |||||||||
Total (2) | 53.1 | 54.2 | |||||||||
Total | $ | 164.4 | $ | 167.7 |
2018.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Three Months Ended September 30, 2017 | ||||||||||||
Pre-Modification | Post-Modification | |||||||||||
Outstanding | Outstanding | |||||||||||
Number | Recorded | Recorded | ||||||||||
(dollars in millions) | of Contracts | Investment | Investment | |||||||||
Commercial: | ||||||||||||
Commercial real estate (1) | 1 | $ | 0.1 | $ | 0.1 | |||||||
Commercial and industrial (2) | 9 | 11.6 | 11.6 | |||||||||
Equipment financing (3) | 13 | 8.1 | 8.1 | |||||||||
|
|
|
|
|
| |||||||
Total | 23 | 19.8 | 19.8 | |||||||||
|
|
|
|
|
| |||||||
Retail: | ||||||||||||
Residential mortgage (4) | 17 | 3.8 | 3.8 | |||||||||
Home equity (5) | 19 | 1.5 | 1.5 | |||||||||
Other consumer | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | 36 | 5.3 | 5.3 | |||||||||
|
|
|
|
|
| |||||||
Total | 59 | $ | 25.1 | $ | 25.1 | |||||||
|
|
|
|
|
|
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | ||||||||||||||||||||||||
Commercial and industrial (1) | 15 | 22.0 | 22.0 | ||||||||||||||||||||||||||
Equipment financing (2) | 9 | 6.2 | 6.2 | ||||||||||||||||||||||||||
Total | 24 | 28.2 | 28.2 | ||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||
Residential mortgage (3) | 37 | 9.8 | 9.8 | ||||||||||||||||||||||||||
Home equity (4) | 46 | 3.6 | 3.6 | ||||||||||||||||||||||||||
Other consumer | — | — | — | ||||||||||||||||||||||||||
Total | 83 | 13.4 | 13.4 | ||||||||||||||||||||||||||
Total | 107 | $ | 41.6 | $ | 41.6 |
Nine Months Ended September 30, 2017 | ||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||
Commercial: | ||||||||||||
Commercial real estate (1) | 8 | $ | 5.3 | $ | 5.3 | |||||||
Commercial and industrial (2) | 28 | 39.6 | 39.6 | |||||||||
Equipment financing (3) | 54 | 25.1 | 25.1 | |||||||||
|
|
|
|
|
| |||||||
Total | 90 | 70.0 | 70.0 | |||||||||
|
|
|
|
|
| |||||||
Retail: | ||||||||||||
Residential mortgage (4) | 45 | 10.8 | 10.8 | |||||||||
Home equity (5) | 65 | 4.5 | 4.5 | |||||||||
Other consumer | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | 110 | 15.3 | 15.3 | |||||||||
|
|
|
|
|
| |||||||
Total | 200 | $ | 85.3 | $ | 85.3 | |||||||
|
|
|
|
|
|
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial real estate (1) | 1 | $ | 0.6 | $ | 0.6 | ||||||||||||||||||||||||
Commercial and industrial (2) | 19 | 23.4 | 23.4 | ||||||||||||||||||||||||||
Equipment financing (3) | 23 | 13.4 | 13.4 | ||||||||||||||||||||||||||
Total | 43 | 37.4 | 37.4 | ||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||
Residential mortgage (4) | 57 | 15.4 | 15.4 | ||||||||||||||||||||||||||
Home equity (5) | 68 | 5.7 | 5.7 | ||||||||||||||||||||||||||
Other consumer | — | — | — | ||||||||||||||||||||||||||
Total | 125 | 21.1 | 21.1 | ||||||||||||||||||||||||||
Total | 168 | $ | 58.5 | $ | 58.5 |
Three Months Ended September 30, 2016 | ||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||
Commercial: | ||||||||||||
Commercial real estate (1) | 7 | $ | 22.1 | $ | 22.1 | |||||||
Commercial and industrial (2) | 11 | 4.5 | 4.5 | |||||||||
Equipment financing (3) | 22 | 10.4 | 10.4 | |||||||||
|
|
|
|
|
| |||||||
Total | 40 | 37.0 | 37.0 | |||||||||
|
|
|
|
|
| |||||||
Retail: | ||||||||||||
Residential mortgage (4) | 9 | 2.9 | 2.9 | |||||||||
Home equity (5) | 17 | 1.2 | 1.2 | |||||||||
Other consumer | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | 26 | 4.1 | 4.1 | |||||||||
|
|
|
|
|
| |||||||
Total | 66 | $ | 41.1 | $ | 41.1 | |||||||
|
|
|
|
|
|
Three Months Ended June 30, 2018 | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial real estate (1) | 1 | $ | 0.3 | $ | 0.3 | ||||||||||||||||||||||||
Commercial and industrial (2) | 11 | 29.8 | 29.8 | ||||||||||||||||||||||||||
Equipment financing (3) | 2 | 2.6 | 2.6 | ||||||||||||||||||||||||||
Total | 14 | 32.7 | 32.7 | ||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||
Residential mortgage (4) | 7 | 2.7 | 2.7 | ||||||||||||||||||||||||||
Home equity (5) | 25 | 1.8 | 1.8 | ||||||||||||||||||||||||||
Other consumer | — | — | — | ||||||||||||||||||||||||||
Total | 32 | 4.5 | 4.5 | ||||||||||||||||||||||||||
Total | 46 | $ | 37.2 | $ | 37.2 |
Nine Months Ended September 30, 2016 | ||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||
Commercial: | ||||||||||||
Commercial real estate (1) | 12 | $ | 25.9 | $ | 25.9 | |||||||
Commercial and industrial (2) | 36 | 22.9 | 22.9 | |||||||||
Equipment financing (3) | 49 | 21.7 | 21.7 | |||||||||
|
|
|
|
|
| |||||||
Total | 97 | 70.5 | 70.5 | |||||||||
|
|
|
|
|
| |||||||
Retail: | ||||||||||||
Residential mortgage (4) | 47 | 13.1 | 13.1 | |||||||||
Home equity (5) | 50 | 3.8 | 3.8 | |||||||||
Other consumer | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | 97 | 16.9 | 16.9 | |||||||||
|
|
|
|
|
| |||||||
Total | 194 | $ | 87.4 | $ | 87.4 | |||||||
|
|
|
|
|
|
Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial real estate (1) | 5 | $ | 3.6 | $ | 3.6 | ||||||||||||||||||||||||
Commercial and industrial (2) | 24 | 44.9 | 44.9 | ||||||||||||||||||||||||||
Equipment financing (3) | 11 | 10.1 | 10.1 | ||||||||||||||||||||||||||
Total | 40 | 58.6 | 58.6 | ||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||
Residential mortgage (4) | 12 | 3.5 | 3.5 | ||||||||||||||||||||||||||
Home equity (5) | 37 | 2.7 | 2.7 | ||||||||||||||||||||||||||
Other consumer | — | — | — | ||||||||||||||||||||||||||
Total | 49 | 6.2 | 6.2 | ||||||||||||||||||||||||||
Total | 89 | $ | 64.8 | $ | 64.8 |
Three Months Ended September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
(dollars in millions) | Number of Contracts | Recorded Investment as of Period End | Number of Contracts | Recorded Investment as of Period End | ||||||||||||
Commercial: | ||||||||||||||||
Commercial real estate | — | $ | — | — | $ | — | ||||||||||
Commercial and industrial | 1 | 0.1 | — | — | ||||||||||||
Equipment financing | 8 | 4.2 | 14 | 2.2 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 9 | 4.3 | 14 | 2.2 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Retail: | ||||||||||||||||
Residential mortgage | 2 | 0.9 | 3 | 0.6 | ||||||||||||
Home equity | 5 | 0.8 | — | — | ||||||||||||
Other consumer | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 7 | 1.7 | 3 | 0.6 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 16 | $ | 6.0 | 17 | $ | 2.8 | ||||||||||
|
|
|
|
|
|
|
|
Nine Months Ended September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
(dollars in millions) | Number of Contracts | Recorded Investment as of Period End | Number of Contracts | Recorded Investment as of Period End | ||||||||||||
Commercial: | ||||||||||||||||
Commercial real estate | — | $ | — | 2 | $ | 0.9 | ||||||||||
Commercial and industrial | 4 | 1.5 | 5 | 0.6 | ||||||||||||
Equipment financing | 15 | 6.8 | 20 | 5.9 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 19 | 8.3 | 27 | 7.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Retail: | ||||||||||||||||
Residential mortgage | 9 | 2.7 | 10 | 1.9 | ||||||||||||
Home equity | 11 | 1.3 | 7 | 0.5 | ||||||||||||
Other consumer | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 20 | 4.0 | 17 | 2.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 39 | $ | 12.3 | 44 | $ | 9.8 | ||||||||||
|
|
|
|
|
|
|
|
2018.
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Recorded Investment as of Period End | Number of Contracts | Recorded Investment as of Period End | |||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | 2 | $ | 0.9 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 2 | 0.4 | |||||||||||||||||||||||||||||||||||||
Equipment financing | 3 | 4.9 | 2 | 2.1 | |||||||||||||||||||||||||||||||||||||
Total | 3 | 4.9 | 6 | 3.4 | |||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 1 | 0.5 | — | — | |||||||||||||||||||||||||||||||||||||
Home equity | 6 | 0.6 | 2 | 0.2 | |||||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total | 7 | 1.1 | 2 | 0.2 | |||||||||||||||||||||||||||||||||||||
Total | 10 | $ | 6.0 | 8 | $ | 3.6 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Recorded Investment as of Period End | Number of Contracts | Recorded Investment as of Period End | |||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | 2 | $ | 0.9 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 9 | 4.0 | |||||||||||||||||||||||||||||||||||||
Equipment financing | 5 | 7.5 | 7 | 7.5 | |||||||||||||||||||||||||||||||||||||
Total | 5 | 7.5 | 18 | 12.4 | |||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 4 | 1.8 | 2 | 0.5 | |||||||||||||||||||||||||||||||||||||
Home equity | 9 | 1.1 | 3 | 0.2 | |||||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total | 13 | 2.9 | 5 | 0.7 | |||||||||||||||||||||||||||||||||||||
Total | 18 | $ | 10.4 | 23 | $ | 13.1 |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||||||||||
(in millions) | Unpaid Principal Balance | Recorded Investment | Related Allowance for Loan Losses | Unpaid Principal Balance | Recorded Investment | Related Allowance for Loan Losses | ||||||||||||||||||
Without a related allowance for loan losses: |
| |||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial real estate | $ | 50.7 | $ | 46.1 | $ | — | $ | 41.4 | $ | 40.0 | $ | — | ||||||||||||
Commercial and industrial | 39.3 | 36.7 | — | 50.7 | 45.7 | — | ||||||||||||||||||
Equipment financing | 42.8 | 39.1 | — | 38.2 | 35.3 | — | ||||||||||||||||||
Retail: | ||||||||||||||||||||||||
Residential mortgage | 66.8 | 60.0 | — | 63.6 | 58.0 | — | ||||||||||||||||||
Home equity | 23.5 | 20.0 | — | 22.4 | 18.7 | — | ||||||||||||||||||
Other consumer | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 223.1 | $ | 201.9 | $ | — | $ | 216.3 | $ | 197.7 | $ | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
With a related allowance for loan losses: |
| |||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial real estate | $ | 13.5 | $ | 12.8 | $ | 1.2 | $ | 12.2 | $ | 11.4 | $ | 0.6 | ||||||||||||
Commercial and industrial | 25.2 | 24.6 | 3.0 | 25.9 | 25.0 | 4.7 | ||||||||||||||||||
Equipment financing | 14.1 | 13.2 | 1.5 | 5.0 | 4.4 | 0.5 | ||||||||||||||||||
Retail: | ||||||||||||||||||||||||
Residential mortgage | 12.4 | 12.4 | 1.7 | 13.1 | 13.1 | 2.3 | ||||||||||||||||||
Home equity | 1.9 | 1.9 | 0.7 | 2.1 | 2.0 | 0.9 | ||||||||||||||||||
Other consumer | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 67.1 | $ | 64.9 | $ | 8.1 | $ | 58.3 | $ | 55.9 | $ | 9.0 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total impaired loans: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial real estate | $ | 64.2 | $ | 58.9 | $ | 1.2 | $ | 53.6 | $ | 51.4 | $ | 0.6 | ||||||||||||
Commercial and industrial | 64.5 | 61.3 | 3.0 | 76.6 | 70.7 | 4.7 | ||||||||||||||||||
Equipment financing | 56.9 | 52.3 | 1.5 | 43.2 | 39.7 | 0.5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 185.6 | 172.5 | 5.7 | 173.4 | 161.8 | 5.8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Retail: | ||||||||||||||||||||||||
Residential mortgage | 79.2 | 72.4 | 1.7 | 76.7 | 71.1 | 2.3 | ||||||||||||||||||
Home equity | 25.4 | 21.9 | 0.7 | 24.5 | 20.7 | 0.9 | ||||||||||||||||||
Other consumer | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 104.6 | 94.3 | 2.4 | 101.2 | 91.8 | 3.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 290.2 | $ | 266.8 | $ | 8.1 | $ | 274.6 | $ | 253.6 | $ | 9.0 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2019 | As of December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Unpaid Principal Balance | Recorded Investment | Related Allowance for Loan Losses | Unpaid Principal Balance | Recorded Investment | Related Allowance for Loan Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Without a related allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 25.1 | $ | 22.0 | $ | — | $ | 31.0 | $ | 28.1 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 41.9 | 37.0 | — | 45.6 | 42.0 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment financing | 21.0 | 18.3 | — | 20.2 | 18.0 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 66.7 | 59.1 | — | 66.8 | 59.3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 26.5 | 23.2 | — | 23.8 | 20.3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 181.2 | $ | 159.6 | $ | — | $ | 187.4 | $ | 167.7 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||
With a related allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 2.6 | $ | 2.3 | $ | 0.1 | $ | 23.8 | $ | 21.8 | $ | 1.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 16.2 | 14.8 | 7.9 | 12.6 | 10.2 | 2.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment financing | 10.6 | 10.4 | 2.3 | 16.2 | 12.8 | 2.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 11.7 | 11.5 | 1.6 | 8.8 | 8.8 | 1.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 1.2 | 1.2 | 0.4 | 1.7 | 1.6 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 42.3 | $ | 40.2 | $ | 12.3 | $ | 63.1 | $ | 55.2 | $ | 9.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 27.7 | $ | 24.3 | $ | 0.1 | $ | 54.8 | $ | 49.9 | $ | 1.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 58.1 | 51.8 | 7.9 | 58.2 | 52.2 | 2.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment financing | 31.6 | 28.7 | 2.3 | 36.4 | 30.8 | 2.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 117.4 | 104.8 | 10.3 | 149.4 | 132.9 | 6.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 78.4 | 70.6 | 1.6 | 75.6 | 68.1 | 1.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 27.7 | 24.4 | 0.4 | 25.5 | 21.9 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 106.1 | 95.0 | 2.0 | 101.1 | 90.0 | 2.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 223.5 | $ | 199.8 | $ | 12.3 | $ | 250.5 | $ | 222.9 | $ | 9.1 |
Three Months Ended September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
(in millions) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
Commercial: | ||||||||||||||||
Commercial real estate | $ | 61.8 | $ | 0.3 | $ | 54.1 | $ | 0.4 | ||||||||
Commercial and industrial | 59.7 | 0.7 | 60.5 | 0.3 | ||||||||||||
Equipment financing | 46.5 | 0.2 | 38.2 | 0.1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 168.0 | 1.2 | 152.8 | 0.8 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Retail: | ||||||||||||||||
Residential mortgage | 72.4 | 0.4 | 71.7 | 0.4 | ||||||||||||
Home equity | 21.8 | 0.1 | 21.3 | 0.1 | ||||||||||||
Other consumer | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 94.2 | 0.5 | 93.0 | 0.5 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 262.2 | $ | 1.7 | $ | 245.8 | $ | 1.3 | ||||||||
|
|
|
|
|
|
|
|
Nine Months Ended September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
(in millions) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
Commercial: | ||||||||||||||||
Commercial real estate | $ | 56.9 | $ | 0.9 | $ | 58.6 | $ | 1.1 | ||||||||
Commercial and industrial | 66.1 | 1.6 | 61.9 | 1.2 | ||||||||||||
Equipment financing | 43.0 | 0.4 | 35.9 | 0.2 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 166.0 | 2.9 | 156.4 | 2.5 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Retail: | ||||||||||||||||
Residential mortgage | 71.9 | 1.3 | 72.1 | 1.2 | ||||||||||||
Home equity | 21.1 | 0.3 | 21.9 | 0.2 | ||||||||||||
Other consumer | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 93.0 | 1.6 | 94.0 | 1.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 259.0 | $ | 4.5 | $ | 250.4 | $ | 3.9 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||
(in millions) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 39.9 | $ | — | $ | 40.7 | $ | 0.2 | |||||||||||||||||||||||||||||||||
Commercial and industrial | 41.9 | 0.5 | 50.5 | 0.7 | |||||||||||||||||||||||||||||||||||||
Equipment financing | 24.5 | 0.1 | 42.3 | — | |||||||||||||||||||||||||||||||||||||
Total | 106.3 | 0.6 | 133.5 | 0.9 | |||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 67.2 | 0.5 | 69.2 | 0.4 | |||||||||||||||||||||||||||||||||||||
Home equity | 22.6 | 0.2 | 20.9 | 0.1 | |||||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total | 89.8 | 0.7 | 90.1 | 0.5 | |||||||||||||||||||||||||||||||||||||
Total | $ | 196.1 | $ | 1.3 | $ | 223.6 | $ | 1.4 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||
(in millions) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 45.5 | $ | 0.4 | $ | 42.9 | $ | 0.5 | |||||||||||||||||||||||||||||||||
Commercial and industrial | 42.7 | 1.1 | 49.7 | 1.1 | |||||||||||||||||||||||||||||||||||||
Equipment financing | 23.9 | 0.1 | 41.7 | 0.1 | |||||||||||||||||||||||||||||||||||||
Total | 112.1 | 1.6 | 134.3 | 1.7 | |||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 65.6 | 1.0 | 69.9 | 0.9 | |||||||||||||||||||||||||||||||||||||
Home equity | 22.1 | 0.3 | 21.2 | 0.2 | |||||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total | 87.7 | 1.3 | 91.1 | 1.1 | |||||||||||||||||||||||||||||||||||||
Total | $ | 199.8 | $ | 2.9 | $ | 225.4 | $ | 2.8 |
Past Due | ||||||||||||||||||||
As of September 30, 2017 (in millions) | Current | 30-89 Days | 90 Days or More | Total | Total Originated | |||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial real estate | $ | 10,158.6 | $ | 20.3 | $ | 15.2 | $ | 35.5 | $ | 10,194.1 | ||||||||||
Commercial and industrial | 7,943.2 | 10.1 | 18.0 | 28.1 | 7,971.3 | |||||||||||||||
Equipment financing | 2,942.7 | 88.4 | 8.0 | 96.4 | 3,039.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 21,044.5 | 118.8 | 41.2 | 160.0 | 21,204.5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 6,455.4 | 31.8 | 20.4 | 52.2 | 6,507.6 | |||||||||||||||
Home equity | 1,968.5 | 7.0 | 6.3 | 13.3 | 1,981.8 | |||||||||||||||
Other consumer | 46.5 | 0.8 | — | 0.8 | 47.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 8,470.4 | 39.6 | 26.7 | 66.3 | 8,536.7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total originated loans | $ | 29,514.9 | $ | 158.4 | $ | 67.9 | $ | 226.3 | $ | 29,741.2 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Past Due | |||||||||||||||||||||||||||||||||||||||||
As of June 30, 2019 (in millions) | Current | 30-89 Days | 90 Days or More | Total | Total Originated | ||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 9,663.2 | $ | 3.6 | $ | 16.4 | $ | 20.0 | $ | 9,683.2 | |||||||||||||||||||||||||||||||
Commercial and industrial | 9,220.4 | 6.6 | 15.4 | 22.0 | 9,242.4 | ||||||||||||||||||||||||||||||||||||
Equipment financing | 4,219.1 | 80.6 | 10.1 | 90.7 | 4,309.8 | ||||||||||||||||||||||||||||||||||||
Total | 23,102.7 | 90.8 | 41.9 | 132.7 | 23,235.4 | ||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 6,688.0 | 30.7 | 23.1 | 53.8 | 6,741.8 | ||||||||||||||||||||||||||||||||||||
Home equity | 1,699.5 | 6.9 | 6.6 | 13.5 | 1,713.0 | ||||||||||||||||||||||||||||||||||||
Other consumer | 40.9 | 0.1 | — | 0.1 | 41.0 | ||||||||||||||||||||||||||||||||||||
Total | 8,428.4 | 37.7 | 29.7 | 67.4 | 8,495.8 | ||||||||||||||||||||||||||||||||||||
Total originated loans | $ | 31,531.1 | $ | 128.5 | $ | 71.6 | $ | 200.1 | $ | 31,731.2 |
Past Due | ||||||||||||||||||||
As of December 31, 2016 (in millions) | Current | 30-89 Days | 90 Days or More | Total | Total Originated | |||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial real estate | $ | 9,989.9 | $ | 10.9 | $ | 11.8 | $ | 22.7 | $ | 10,012.6 | ||||||||||
Commercial and industrial | 7,899.2 | 10.0 | 29.8 | 39.8 | 7,939.0 | |||||||||||||||
Equipment financing | 2,941.5 | 68.4 | 11.0 | 79.4 | 3,020.9 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 20,830.6 | 89.3 | 52.6 | 141.9 | 20,972.5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 6,027.5 | 22.0 | 17.8 | 39.8 | 6,067.3 | |||||||||||||||
Home equity | 2,030.3 | 5.2 | 9.4 | 14.6 | 2,044.9 | |||||||||||||||
Other consumer | 49.7 | 0.3 | — | 0.3 | 50.0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 8,107.5 | 27.5 | 27.2 | 54.7 | 8,162.2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total originated loans | $ | 28,938.1 | $ | 116.8 | $ | 79.8 | $ | 196.6 | $ | 29,134.7 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Past Due | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2018 (in millions) | Current | 30-89 Days | 90 Days or More | Total | Total Originated | ||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 9,762.1 | $ | 23.0 | $ | 13.4 | $ | 36.4 | $ | 9,798.5 | |||||||||||||||||||||||||||||||
Commercial and industrial | 8,261.5 | 6.9 | 23.9 | 30.8 | 8,292.3 | ||||||||||||||||||||||||||||||||||||
Equipment financing | 3,855.3 | 68.8 | 13.6 | 82.4 | 3,937.7 | ||||||||||||||||||||||||||||||||||||
Total | 21,878.9 | 98.7 | 50.9 | 149.6 | 22,028.5 | ||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 6,723.2 | 38.6 | 27.4 | 66.0 | 6,789.2 | ||||||||||||||||||||||||||||||||||||
Home equity | 1,776.0 | 5.8 | 7.7 | 13.5 | 1,789.5 | ||||||||||||||||||||||||||||||||||||
Other consumer | 42.7 | 0.1 | — | 0.1 | 42.8 | ||||||||||||||||||||||||||||||||||||
Total | 8,541.9 | 44.5 | 35.1 | 79.6 | 8,621.5 | ||||||||||||||||||||||||||||||||||||
Total originated loans | $ | 30,420.8 | $ | 143.2 | $ | 86.0 | $ | 229.2 | $ | 30,650.0 |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Acquired loans are initially recorded at fair value, determined based upon an estimate
As of September 30, 2017 (in millions) | Commercial Real Estate | Commercial and Industrial | Equipment Financing | Total | ||||||||||||
Commercial: | ||||||||||||||||
Originated loans: | ||||||||||||||||
Pass | $ | 9,926.2 | $ | 7,588.1 | $ | 2,619.7 | $ | 20,134.0 | ||||||||
Special mention | 129.1 | 122.8 | 101.8 | 353.7 | ||||||||||||
Substandard | 137.9 | 259.6 | 317.6 | 715.1 | ||||||||||||
Doubtful | 0.9 | 0.8 | — | 1.7 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total originated loans | 10,194.1 | 7,971.3 | 3,039.1 | 21,204.5 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Acquired loans: | ||||||||||||||||
Pass | 940.9 | 562.2 | 666.5 | 2,169.6 | ||||||||||||
Special mention | 6.2 | 42.4 | — | 48.6 | ||||||||||||
Substandard | 38.6 | 48.8 | — | 87.4 | ||||||||||||
Doubtful | 0.7 | — | — | 0.7 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total acquired loans | 986.4 | 653.4 | 666.5 | 2,306.3 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 11,180.5 | $ | 8,624.7 | $ | 3,705.6 | $ | 23,510.8 | ||||||||
|
|
|
|
|
|
|
| |||||||||
As of September 30, 2017 (in millions) | Residential Mortgage | Home Equity | Other Consumer | Total | ||||||||||||
Retail: | ||||||||||||||||
Originated loans: | ||||||||||||||||
Low risk | $ | 3,259.8 | $ | 928.2 | $ | 27.2 | $ | 4,215.2 | ||||||||
Moderate risk | 2,715.9 | 652.2 | 8.0 | 3,376.1 | ||||||||||||
High risk | 531.9 | 401.4 | 12.1 | 945.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total originated loans | 6,507.6 | 1,981.8 | 47.3 | 8,536.7 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Acquired loans: | ||||||||||||||||
Low risk | 154.9 | — | — | 154.9 | ||||||||||||
Moderate risk | 60.2 | — | — | 60.2 | ||||||||||||
High risk | 58.3 | 59.7 | 3.9 | 121.9 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total acquired loans | 273.4 | 59.7 | 3.9 | 337.0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 6,781.0 | $ | 2,041.5 | $ | 51.2 | $ | 8,873.7 | ||||||||
|
|
|
|
|
|
|
|
As of June 30, 2019 (in millions) | Commercial Real Estate | Commercial and Industrial | Equipment Financing | Total | |||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Originated loans: | |||||||||||||||||||||||
Pass | $ | 9,516.4 | $ | 8,740.3 | $ | 3,917.2 | $ | 22,173.9 | |||||||||||||||
Special mention | 95.7 | 240.1 | 65.2 | 401.0 | |||||||||||||||||||
Substandard | 70.1 | 261.4 | 327.4 | 658.9 | |||||||||||||||||||
Doubtful | 1.0 | 0.6 | — | 1.6 | |||||||||||||||||||
Total originated loans | 9,683.2 | 9,242.4 | 4,309.8 | 23,235.4 | |||||||||||||||||||
Acquired loans: | |||||||||||||||||||||||
Pass | 2,457.0 | 819.0 | 298.5 | 3,574.5 | |||||||||||||||||||
Special mention | 32.4 | 19.3 | — | 51.7 | |||||||||||||||||||
Substandard | 58.1 | 41.1 | 2.7 | 101.9 | |||||||||||||||||||
Doubtful | — | — | — | — | |||||||||||||||||||
Total acquired loans | 2,547.5 | 879.4 | 301.2 | 3,728.1 | |||||||||||||||||||
Total | $ | 12,230.7 | $ | 10,121.8 | $ | 4,611.0 | $ | 26,963.5 |
As of June 30, 2019 (in millions) | Residential Mortgage | Home Equity | Other Consumer | Total | |||||||||||||||||||
Retail: | |||||||||||||||||||||||
Originated loans: | |||||||||||||||||||||||
Low risk | $ | 3,397.3 | $ | 791.6 | $ | 25.2 | $ | 4,214.1 | |||||||||||||||
Moderate risk | 2,781.0 | 565.6 | 6.2 | 3,352.8 | |||||||||||||||||||
High risk | 563.5 | 355.8 | 9.6 | 928.9 | |||||||||||||||||||
Total originated loans | 6,741.8 | 1,713.0 | 41.0 | 8,495.8 | |||||||||||||||||||
Acquired loans: | |||||||||||||||||||||||
Low risk | 661.9 | — | — | 661.9 | |||||||||||||||||||
Moderate risk | 1,337.8 | — | — | 1,337.8 | |||||||||||||||||||
High risk | 791.1 | 296.5 | 10.1 | 1,097.7 | |||||||||||||||||||
Total acquired loans | 2,790.8 | 296.5 | 10.1 | 3,097.4 | |||||||||||||||||||
Total | $ | 9,532.6 | $ | 2,009.5 | $ | 51.1 | $ | 11,593.2 |
As of December 31, 2016 (in millions) | Commercial Real Estate | Commercial and Industrial | Equipment Financing | Total | ||||||||||||
Commercial: | ||||||||||||||||
Originated loans: | ||||||||||||||||
Pass | $ | 9,817.2 | $ | 7,580.6 | $ | 2,617.9 | $ | 20,015.7 | ||||||||
Special mention | 107.3 | 121.9 | 98.8 | 328.0 | ||||||||||||
Substandard | 87.1 | 233.3 | 304.2 | 624.6 | ||||||||||||
Doubtful | 1.0 | 3.2 | — | 4.2 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total originated loans | 10,012.6 | 7,939.0 | 3,020.9 | 20,972.5 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Acquired loans: | ||||||||||||||||
Pass | 182.9 | 155.5 | 1.0 | 339.4 | ||||||||||||
Special mention | 13.5 | 3.6 | 8.6 | 25.7 | ||||||||||||
Substandard | 37.6 | 27.0 | 2.0 | 66.6 | ||||||||||||
Doubtful | 0.7 | — | — | 0.7 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total acquired loans | 234.7 | 186.1 | 11.6 | 432.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 10,247.3 | $ | 8,125.1 | $ | 3,032.5 | $ | 21,404.9 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Residential | Home | Other | ||||||||||||||
As of December 31, 2016 (in millions) | Mortgage | Equity | Consumer | Total | ||||||||||||
Retail: | ||||||||||||||||
Originated loans: | ||||||||||||||||
Low risk | $ | 3,016.4 | $ | 950.9 | $ | 31.1 | $ | 3,998.4 | ||||||||
Moderate risk | 2,538.9 | 663.9 | 7.2 | 3,210.0 | ||||||||||||
High risk | 512.0 | 430.1 | 11.7 | 953.8 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total originated loans | 6,067.3 | 2,044.9 | 50.0 | 8,162.2 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Acquired loans: | ||||||||||||||||
Low risk | 75.7 | — | — | 75.7 | ||||||||||||
Moderate risk | 27.5 | — | — | 27.5 | ||||||||||||
High risk | 46.2 | 27.7 | 0.7 | 74.6 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total acquired loans | 149.4 | 27.7 | 0.7 | 177.8 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 6,216.7 | $ | 2,072.6 | $ | 50.7 | $ | 8,340.0 | ||||||||
|
|
|
|
|
|
|
|
Acquired
As of December 31, 2018 (in millions) | Commercial Real Estate | Commercial and Industrial | Equipment Financing | Total | |||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Originated loans: | |||||||||||||||||||||||
Pass | $ | 9,607.0 | $ | 7,855.7 | $ | 3,549.3 | $ | 21,012.0 | |||||||||||||||
Special mention | 105.5 | 196.9 | 92.1 | 394.5 | |||||||||||||||||||
Substandard | 85.2 | 239.3 | 296.3 | 620.8 | |||||||||||||||||||
Doubtful | 0.8 | 0.4 | — | 1.2 | |||||||||||||||||||
Total originated loans | 9,798.5 | 8,292.3 | 3,937.7 | 22,028.5 | |||||||||||||||||||
Acquired loans: | |||||||||||||||||||||||
Pass | 1,766.2 | 719.6 | 394.0 | 2,879.8 | |||||||||||||||||||
Special mention | 27.3 | 14.6 | 4.7 | 46.6 | |||||||||||||||||||
Substandard | 57.6 | 62.4 | 2.8 | 122.8 | |||||||||||||||||||
Doubtful | — | — | — | — | |||||||||||||||||||
Total acquired loans | 1,851.1 | 796.6 | 401.5 | 3,049.2 | |||||||||||||||||||
Total | $ | 11,649.6 | $ | 9,088.9 | $ | 4,339.2 | $ | 25,077.7 | |||||||||||||||
As of December 31, 2018 (in millions) | Residential Mortgage | Home Equity | Other Consumer | Total | |||||||||||||||||||
Retail: | |||||||||||||||||||||||
Originated loans: | |||||||||||||||||||||||
Low risk | $ | 2,912.8 | $ | 834.5 | $ | 27.3 | $ | 3,774.6 | |||||||||||||||
Moderate risk | 3,360.9 | 576.4 | 5.9 | 3,943.2 | |||||||||||||||||||
High risk | 515.5 | 378.6 | 9.6 | 903.7 | |||||||||||||||||||
Total originated loans | 6,789.2 | 1,789.5 | 42.8 | 8,621.5 | |||||||||||||||||||
Acquired loans: | |||||||||||||||||||||||
Low risk | 506.1 | — | — | 506.1 | |||||||||||||||||||
Moderate risk | 639.6 | — | — | 639.6 | |||||||||||||||||||
High risk | 219.3 | 173.0 | 4.2 | 396.5 | |||||||||||||||||||
Total acquired loans | 1,365.0 | 173.0 | 4.2 | 1,542.2 | |||||||||||||||||||
Total | $ | 8,154.2 | $ | 1,962.5 | $ | 47.0 | $ | 10,163.7 |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Balance at beginning of period | $ | 233.4 | $ | 270.3 | $ | 255.4 | $ | 296.0 | ||||||||
Acquisitions | — | — | 13.1 | — | ||||||||||||
Accretion | (7.1 | ) | (9.0 | ) | (22.5 | ) | (31.1 | ) | ||||||||
Reclassification from nonaccretable difference for loans with improved cash flows (1) | — | — | — | — | ||||||||||||
Other changes in expected cash flows (2) | — | 2.4 | (19.7 | ) | (1.2 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Balance at end of period | $ | 226.3 | $ | 263.7 | $ | 226.3 | $ | 263.7 | ||||||||
|
|
|
|
|
|
|
|
1.Results in increased interest accretion as a prospective yield adjustment over the remaining life of the corresponding pool of loans. 2.Represents changes in cash flows expected |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
be collected due to factors other than credit (e.g. changes in prepayment assumptions and/or changes in interest rates on variable rate loans), as well as loan sales, modifications and payoffs.
NOTE 5. STOCKHOLDERS’ EQUITY
NOTE 5. STOCKHOLDERS' EQUITY |
and Common Stock
(in millions) | Pension and Other Postretirement Plans | Net Unrealized Gains (Losses) on Securities Available for Sale | Net Unrealized Gains (Losses) on Securities Transferred to Held to Maturity | Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges | Total AOCL | |||||||||||||||
Balance at December 31, 2016 | $ | (145.6 | ) | $ | (32.3 | ) | $ | (17.4 | ) | $ | 0.3 | $ | (195.0 | ) | ||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Other comprehensive income before reclassifications | — | 11.1 | — | 0.3 | 11.4 | |||||||||||||||
Amounts reclassified from AOCL (1) | 2.8 | 9.9 | 1.6 | (0.4 | ) | 13.9 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Current period other comprehensive income | 2.8 | 21.0 | 1.6 | (0.1 | ) | 25.3 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at September 30, 2017 | $ | (142.8 | ) | $ | (11.3 | ) | $ | (15.8 | ) | $ | 0.2 | $ | (169.7 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
(in millions) | Pension and Other Postretirement Plans | Net Unrealized Gains (Losses) on Securities Available for Sale | Net Unrealized Gains (Losses) on Securities Transferred to Held to Maturity | Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges | Total AOCL | |||||||||||||||
Balance at December 31, 2015 | $ | (140.0 | ) | $ | (17.7 | ) | $ | (19.5 | ) | $ | 0.0 | $ | (177.2 | ) | ||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Other comprehensive income (loss) before reclassifications | — | 52.4 | — | (0.1 | ) | 52.3 | ||||||||||||||
Amounts reclassified from AOCL (1) | 2.8 | (0.1 | ) | 1.5 | 0.3 | 4.5 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Current period other comprehensive income | 2.8 | 52.3 | 1.5 | 0.2 | 56.8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at September 30, 2016 | $ | (137.2 | ) | $ | 34.6 | $ | (18.0 | ) | $ | 0.2 | $ | (120.4 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
(in millions) | Pension and Other Postretirement Plans | Net Unrealized Gains (Losses) on Debt Securities Available-for-Sale | Net Unrealized Gains (Losses) on Debt Securities Transferred to Held-to-Maturity | Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges | Total AOCL | ||||||||||||||||||||||||
Balance at December 31, 2018 | $ | (192.5) | $ | (47.0) | $ | (15.3) | $ | (2.0) | $ | (256.8) | |||||||||||||||||||
Other comprehensive income before reclassifications | — | 57.6 | — | 1.5 | 59.1 | ||||||||||||||||||||||||
Amounts reclassified from AOCL (1) | 2.9 | — | 1.2 | 0.6 | 4.7 | ||||||||||||||||||||||||
Current period other comprehensive income | 2.9 | 57.6 | 1.2 | 2.1 | 63.8 | ||||||||||||||||||||||||
Balance at June 30, 2019 | $ | (189.6) | $ | 10.6 | $ | (14.1) | $ | 0.1 | $ | (193.0) |
(in millions) | Pension and Other Postretirement Plans | Net Unrealized Gains (Losses) on Debt Securities Available-for-Sale | Net Unrealized Gains (Losses) on Debt Securities Transferred to Held-to-Maturity | Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges | Total AOCL | ||||||||||||||||||||||||
Balance at December 31, 2017 | $ | (144.1) | $ | (21.6) | $ | (15.1) | $ | (0.9) | $ | (181.7) | |||||||||||||||||||
Other comprehensive income before reclassifications | — | (44.2) | — | (2.0) | (46.2) | ||||||||||||||||||||||||
Amounts reclassified from AOCL (1) | 3.0 | (0.1) | 1.6 | — | 4.5 | ||||||||||||||||||||||||
Current period other comprehensive income (loss) | 3.0 | (44.3) | 1.6 | (2.0) | (41.7) | ||||||||||||||||||||||||
Transition adjustments related to adoption of new accounting standards (2) | (30.0) | (3.9) | (3.2) | (0.2) | (37.3) | ||||||||||||||||||||||||
Balance at June 30, 2018 | $ | (171.1) | $ | (69.8) | $ | (16.7) | $ | (3.1) | $ | (260.7) |
Amounts Reclassified from AOCL | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Details about components of AOCL: | ||||||||||||||||||
Amortization of pension and other postretirement plans items: | ||||||||||||||||||
Net actuarial loss | $ | (1.7 | ) | $ | (1.7 | ) | $ | (5.1 | ) | $ | (4.8 | ) | (1) | |||||
Prior service credit | 0.2 | 0.2 | 0.6 | 0.6 | (1) | |||||||||||||
|
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|
|
|
|
|
| |||||||||||
(1.5 | ) | (1.5 | ) | (4.5 | ) | (4.2 | ) | Income before income tax expense | ||||||||||
0.6 | 0.6 | 1.7 | 1.4 | Income tax expense | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
(0.9 | ) | (0.9 | ) | (2.8 | ) | (2.8 | ) | Net income | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Reclassification adjustment for net realized gains (losses) on securities available for sale | — | — | (15.6 | ) | 0.1 | Income before income tax expense (2) | ||||||||||||
— | — | 5.7 | — | Income tax expense | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
— | — | (9.9 | ) | 0.1 | Net income | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Amortization of unrealized losses on securities transferred to held to held to maturity | (0.9 | ) | (0.9 | ) | (2.6 | ) | (2.4 | ) | Income before income tax expense (3) | |||||||||
0.3 | 0.4 | 1.0 | 0.9 | Income tax expense | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
(0.6 | ) | (0.5 | ) | (1.6 | ) | (1.5 | ) | Net income | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Amortization of unrealized gains and losses on cash flow hedges: | ||||||||||||||||||
Interest rate swaps | 0.3 | (0.1 | ) | 0.6 | (0.6 | ) | (4) | |||||||||||
Interest rate locks | 0.1 | 0.1 | 0.1 | 0.1 | (4) | |||||||||||||
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|
|
|
|
|
| |||||||||||
0.4 | — | 0.7 | (0.5 | ) | Income before income tax expense | |||||||||||||
(0.2 | ) | — | (0.3 | ) | 0.2 | Income tax expense | ||||||||||||
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|
|
|
|
|
| |||||||||||
0.2 | — | 0.4 | (0.3 | ) | Net income | |||||||||||||
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|
|
|
|
|
| |||||||||||
Total reclassifications for the period | $ | (1.3 | ) | $ | (1.4 | ) | $ | (13.9 | ) | $ | (4.5 | ) | ||||||
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|
|
Amounts Reclassified from AOCL | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||
Details about components of AOCL: | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of pension and other postretirement plans items: | |||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | (1.4) | $ | (2.1) | $ | (2.7) | $ | (4.2) | (1) | ||||||||||||||||||||||||||||||||||||||
Prior service credit | — | 0.1 | — | 0.2 | (1) | ||||||||||||||||||||||||||||||||||||||||||
(1.4) | (2.0) | (2.7) | (4.0) | Income before income tax expense | |||||||||||||||||||||||||||||||||||||||||||
0.3 | 0.7 | (0.2) | 1.0 | Income tax expense | |||||||||||||||||||||||||||||||||||||||||||
(1.1) | (1.3) | (2.9) | (3.0) | Net income | |||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for net realized gains (losses) on debt securities available-for-sale | — | — | — | 0.1 | Income before income tax expense (2) | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | Income tax expense | |||||||||||||||||||||||||||||||||||||||||||
— | — | — | 0.1 | Net income | |||||||||||||||||||||||||||||||||||||||||||
Amortization of unrealized losses on debt securities transferred to held-to-maturity | (0.8) | (1.2) | (1.6) | (2.1) | Income before income tax expense (3) | ||||||||||||||||||||||||||||||||||||||||||
0.2 | 0.3 | 0.4 | 0.5 | Income tax expense | |||||||||||||||||||||||||||||||||||||||||||
(0.6) | (0.9) | (1.2) | (1.6) | Net income | |||||||||||||||||||||||||||||||||||||||||||
Amortization of unrealized gains and losses on cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | (0.4) | (0.1) | (0.8) | — | (5) | ||||||||||||||||||||||||||||||||||||||||||
Interest rate locks (4) | — | — | — | — | (5) | ||||||||||||||||||||||||||||||||||||||||||
(0.4) | (0.1) | (0.8) | — | Income before income tax expense | |||||||||||||||||||||||||||||||||||||||||||
0.1 | 0.1 | 0.2 | — | Income tax expense | |||||||||||||||||||||||||||||||||||||||||||
(0.3) | — | (0.6) | — | Net income | |||||||||||||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | (2.0) | $ | (2.2) | $ | (4.7) | $ | (4.5) |
NOTE 6. EARNINGS PER COMMON SHARE
NOTE 6. EARNINGS PER COMMON SHARE |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(in millions, except per common share data) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income available to common shareholders | $ | 87.3 | $ | 73.7 | $ | 220.4 | $ | 205.1 | ||||||||
Dividends paid on and undistributed earnings | (0.1 | ) | (0.2 | ) | (0.4 | ) | (0.6 | ) | ||||||||
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|
| |||||||||
Earnings attributable to common shareholders | $ | 87.2 | $ | 73.5 | $ | 220.0 | $ | 204.5 | ||||||||
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|
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|
|
| |||||||||
Weighted average common shares outstanding | 336.9 | 302.9 | 327.6 | 302.4 | ||||||||||||
Effect of dilutive equity-based awards | 1.9 | 0.4 | 2.0 | 0.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Weighted average common and common-equivalent | 338.8 | 303.3 | 329.6 | 302.8 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Basic EPS | $ | 0.26 | $ | 0.24 | $ | 0.67 | $ | 0.68 | ||||||||
Diluted EPS | $ | 0.26 | $ | 0.24 | $ | 0.67 | $ | 0.68 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(in millions, except per common share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 129.7 | $ | 106.7 | $ | 240.8 | $ | 211.1 | |||||||||||||||||||||||||||
Dividends paid on and undistributed earnings allocated to participating securities | — | — | (0.1) | (0.1) | |||||||||||||||||||||||||||||||
Earnings attributable to common shareholders | $ | 129.7 | $ | 106.7 | $ | 240.7 | $ | 211.0 | |||||||||||||||||||||||||||
Weighted average common shares outstanding for basic EPS | 391.3 | 340.7 | 381.1 | 340.2 | |||||||||||||||||||||||||||||||
Effect of dilutive equity-based awards | 3.3 | 3.8 | 3.3 | 4.0 | |||||||||||||||||||||||||||||||
Weighted average common shares and common-equivalent shares for diluted EPS | 394.6 | 344.5 | 384.4 | 344.2 | |||||||||||||||||||||||||||||||
EPS: | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.33 | $ | 0.31 | $ | 0.63 | $ | 0.62 | |||||||||||||||||||||||||||
Diluted | 0.33 | 0.31 | 0.63 | 0.61 |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
NOTE 7. GOODWILL AND OTHER ACQUISITION-RELATED INTANGIBLE ASSETS
NOTE 7. GOODWILL AND OTHER ACQUISITION-RELATED INTANGIBLE ASSETS |
Operating Segment | ||||||||||||||||
(in millions) | Commercial Banking | Retail Banking | Wealth Management | Total | ||||||||||||
Balance at December 31, 2016 | $ | 1,222.1 | $ | 679.6 | $ | 91.0 | $ | 1,992.7 | ||||||||
Acquisition of: | ||||||||||||||||
Suffolk | 229.8 | 40.5 | — | 270.3 | ||||||||||||
LEAF | 148.4 | — | — | 148.4 | ||||||||||||
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|
|
|
| |||||||||
Balance at September 30, 2017 | $ | 1,600.3 | $ | 720.1 | $ | 91.0 | $ | 2,411.4 | ||||||||
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| |||||||||
Operating Segment | ||||||||||||||||
(in millions) | Commercial Banking | Retail Banking | Wealth Management | Total | ||||||||||||
Balance at December 31, 2015 | $ | 1,222.8 | $ | 681.9 | $ | 54.0 | $ | 1,958.7 | ||||||||
Acquisition of Eagle Insurance Group, LLC | — | — | 1.4 | 1.4 | ||||||||||||
Adjustments | (0.7 | ) | (2.3 | ) | (0.1 | ) | (3.1 | ) | ||||||||
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| |||||||||
Balance at September 30, 2016 | $ | 1,222.1 | $ | 679.6 | $ | 55.3 | $ | 1,957.0 | ||||||||
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2018, respectively.
Operating Segment | |||||||||||||||||||||||||||||||||||
(in millions) | Commercial Banking | Retail Banking | Wealth Management | Total | |||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 1,759.4 | $ | 835.3 | $ | 91.0 | $ | 2,685.7 | |||||||||||||||||||||||||||
Acquisition of: | |||||||||||||||||||||||||||||||||||
VAR | 37.5 | — | — | 37.5 | |||||||||||||||||||||||||||||||
BSB Bancorp | 49.3 | 95.6 | — | 144.9 | |||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 1,846.2 | $ | 930.9 | $ | 91.0 | $ | 2,868.1 | |||||||||||||||||||||||||||
Operating Segment | |||||||||||||||||||||||||||||||||||
(in millions) | Commercial Banking | Retail Banking | Wealth Management | Total | |||||||||||||||||||||||||||||||
Balance at Balance at December 31, 2017 | $ | 1,600.3 | $ | 720.1 | $ | 91.0 | $ | 2,411.4 | |||||||||||||||||||||||||||
Acquisition of Vend Lease Company | 23.8 | — | — | 23.8 | |||||||||||||||||||||||||||||||
Balance at Balance at June 30, 2018 | $ | 1,624.1 | $ | 720.1 | $ | 91.0 | $ | 2,435.2 |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
NOTE 8. EMPLOYEE BENEFIT PLANS
2018.
NOTE 8. EMPLOYEE BENEFIT PLANS |
effective February 28, 2013.
People’s United also continues to maintain for certain eligible former First Connecticut employees (i) an unfunded, nonqualified supplemental retirement plan (the “First Connecticut Supplemental Plan”) and (ii) unfunded plans that provide medical, dental and life insurance benefits (the “First Connecticut Postretirement Plans”).
Other | ||||||||||||||||
Pension Plans | Postretirement Plan | |||||||||||||||
Three months ended September 30 (in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net periodic benefit (income) expense: | ||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.1 | $ | — | ||||||||
Interest cost | 4.9 | 4.7 | 0.1 | 0.2 | ||||||||||||
Expected return on plan assets | (9.6 | ) | (8.7 | ) | — | — | ||||||||||
Recognized net actuarial loss | 1.6 | 1.6 | 0.1 | 0.1 | ||||||||||||
Recognized prior service credit | (0.2 | ) | (0.2 | ) | — | — | ||||||||||
Settlements | 1.1 | 0.3 | — | — | ||||||||||||
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| |||||||||
Net periodic benefit (income) expense | $ | (2.2 | ) | $ | (2.3 | ) | $ | 0.3 | $ | 0.3 | ||||||
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Other | ||||||||||||||||
Pension Plans | Postretirement Plan | |||||||||||||||
Nine months ended September 30 (in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net periodic benefit (income) expense: | ||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.2 | $ | 0.2 | ||||||||
Interest cost | 14.3 | 14.1 | 0.4 | 0.5 | ||||||||||||
Expected return on plan assets | (28.3 | ) | (25.9 | ) | — | — | ||||||||||
Recognized net actuarial loss | 4.9 | 4.6 | 0.2 | 0.2 | ||||||||||||
Recognized prior service credit | (0.6 | ) | (0.6 | ) | — | — | ||||||||||
Settlements | 2.6 | 0.9 | — | — | ||||||||||||
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Net periodic benefit (income) expense | (7.1 | ) | (6.9 | ) | 0.8 | 0.9 | ||||||||||
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Other changes in plan assets and benefit obligations recognized in other comprehensive income: | ||||||||||||||||
Net actuarial loss | (4.9 | ) | (4.6 | ) | (0.2 | ) | (0.2 | ) | ||||||||
Prior service credit | 0.6 | 0.6 | — | — | ||||||||||||
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Totalpre-tax changes recognized in other comprehensive income | (4.3 | ) | (4.0 | ) | (0.2 | ) | (0.2 | ) | ||||||||
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Total recognized in net periodic benefit | $ | (11.4 | ) | $ | (10.9 | ) | $ | 0.6 | $ | 0.7 | ||||||
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People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Pension Plans | Other Postretirement Plan | ||||||||||||||||||||||||||||||||||
Three months ended June 30 (in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
Net periodic benefit (income) expense: | |||||||||||||||||||||||||||||||||||
Interest cost | $ | 5.8 | $ | 4.9 | $ | 0.1 | $ | 0.2 | |||||||||||||||||||||||||||
Expected return on plan assets | (11.5) | (10.9) | — | — | |||||||||||||||||||||||||||||||
Recognized net actuarial loss | 1.3 | 2.0 | 0.1 | 0.1 | |||||||||||||||||||||||||||||||
Recognized prior service credit | — | (0.1) | — | — | |||||||||||||||||||||||||||||||
Settlements | 0.4 | 0.5 | — | — | |||||||||||||||||||||||||||||||
Net periodic benefit (income) expense (1) | $ | (4.0) | $ | (3.6) | $ | 0.2 | $ | 0.3 | |||||||||||||||||||||||||||
Pension Plans | Other Postretirement Plans | ||||||||||||||||||||||||||||||||||
Six months ended June 30 (in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
Net periodic benefit (income) expense: | |||||||||||||||||||||||||||||||||||
Interest cost | $ | 11.4 | $ | 9.7 | $ | 0.4 | $ | 0.4 | |||||||||||||||||||||||||||
Expected return on plan assets | (22.9) | (21.8) | — | — | |||||||||||||||||||||||||||||||
Recognized net actuarial loss | 2.6 | 4.0 | 0.1 | 0.2 | |||||||||||||||||||||||||||||||
Recognized prior service credit | — | (0.2) | — | — | |||||||||||||||||||||||||||||||
Settlements | 1.0 | 0.9 | — | — | |||||||||||||||||||||||||||||||
Net periodic benefit (income) expense | (7.9) | (7.4) | 0.5 | 0.6 | |||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Net actuarial loss | (2.6) | (4.0) | (0.1) | (0.2) | |||||||||||||||||||||||||||||||
Prior service credit | — | 0.2 | — | — | |||||||||||||||||||||||||||||||
Total pre-tax changes recognized in other comprehensive income (loss) | (2.6) | (3.8) | (0.1) | (0.2) | |||||||||||||||||||||||||||||||
Total recognized in net periodic benefit (income) expense and other comprehensive income (loss) | $ | (10.5) | $ | (11.2) | $ | 0.4 | $ | 0.4 | |||||||||||||||||||||||||||
NOTE 9. LEGAL PROCEEDINGS
NOTE 9. LEGAL PROCEEDINGS |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
NOTE 10. SEGMENT INFORMATION
NOTE 10. SEGMENT INFORMATION |
NOTE 11. FAIR VALUE MEASUREMENTS
2018.
NOTE 11. FAIR VALUE MEASUREMENTS |
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
has been provided.
Available-For-Sale
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
` | Fair Value Measurements Using | |||||||||||||||
As of September 30, 2017 (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial assets: | ||||||||||||||||
Trading account securities: | ||||||||||||||||
U.S. Treasury | $ | 8.3 | $ | — | $ | — | $ | 8.3 | ||||||||
Securities available for sale: | ||||||||||||||||
U.S. Treasury and agency | 741.9 | — | — | 741.9 | ||||||||||||
GSE mortgage-backed securities and CMOs | — | 2,446.6 | — | 2,446.6 | ||||||||||||
Equity securities | 9.0 | — | — | 9.0 | ||||||||||||
Other assets: | — | |||||||||||||||
Exchange-traded funds | 35.0 | — | — | 35.0 | ||||||||||||
Fixed income securities | — | 1.7 | — | 1.7 | ||||||||||||
Mutual funds | 3.6 | — | — | 3.6 | ||||||||||||
Interest rate swaps/caps | — | 101.9 | — | 101.9 | ||||||||||||
Foreign exchange contracts | — | 0.2 | — | 0.2 | ||||||||||||
Forward commitments to sell residential | — | 0.6 | — | 0.6 | ||||||||||||
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Total | $ | 797.8 | $ | 2,551.0 | $ | — | $ | 3,348.8 | ||||||||
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| |||||||||
Financial liabilities: | ||||||||||||||||
Interest rate swaps/caps | $ | — | $ | 60.5 | $ | — | $ | 60.5 | ||||||||
Risk participation agreements (1) | — | — | — | — | ||||||||||||
Foreign exchange contracts | — | 0.2 | — | 0.2 | ||||||||||||
Interest rate-lock commitments on residential mortgage loans | — | 0.7 | — | 0.7 | ||||||||||||
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| �� | |||||||||
Total | $ | — | $ | 61.4 | $ | — | $ | 61.4 | ||||||||
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Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||
As of June 30, 2019 (in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Trading debt securities: | |||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 9.3 | $ | — | $ | — | $ | 9.3 | |||||||||||||||||||||||||||
Debt securities available-for-sale: | |||||||||||||||||||||||||||||||||||
U.S. Treasury and agency | 686.6 | — | — | 686.6 | |||||||||||||||||||||||||||||||
GSE mortgage-backed securities | — | 2,284.6 | — | 2,284.6 | |||||||||||||||||||||||||||||||
Equity securities | 8.5 | — | — | 8.5 | |||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||
Exchange-traded funds | 46.9 | — | — | 46.9 | |||||||||||||||||||||||||||||||
Mutual funds | 4.0 | — | — | 4.0 | |||||||||||||||||||||||||||||||
Interest rate swaps | — | 302.8 | — | 302.8 | |||||||||||||||||||||||||||||||
Interest rate caps | — | 2.5 | — | 2.5 | |||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 0.4 | — | 0.4 | |||||||||||||||||||||||||||||||
Forward commitments to sell residential mortgage loans | — | 0.2 | — | 0.2 | |||||||||||||||||||||||||||||||
Total | $ | 755.3 | $ | 2,590.5 | $ | — | $ | 3,345.8 | |||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 67.0 | $ | — | $ | 67.0 | |||||||||||||||||||||||||||
Interest rate caps | — | 2.5 | — | 2.5 | |||||||||||||||||||||||||||||||
Risk participation agreements | — | 0.2 | — | 0.2 | |||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 0.5 | — | 0.5 | |||||||||||||||||||||||||||||||
Interest rate-lock commitments on residential mortgage loans | — | 0.2 | — | 0.2 | |||||||||||||||||||||||||||||||
Total | $ | — | $ | 70.4 | $ | — | $ | 70.4 |
Fair Value Measurements Using | ||||||||||||||||
As of December 31, 2016 (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial assets: | ||||||||||||||||
Trading account securities: | ||||||||||||||||
U.S. Treasury | $ | 6.8 | $ | — | $ | — | $ | 6.8 | ||||||||
Securities available for sale: | ||||||||||||||||
U.S. Treasury and agency | 859.7 | — | — | 859.7 | ||||||||||||
GSE mortgage-backed securities and CMOs | — | 3,550.0 | — | 3,550.0 | ||||||||||||
Equity securities | — | 0.2 | — | 0.2 | ||||||||||||
Other assets: | ||||||||||||||||
Exchange-traded funds | 32.6 | — | — | 32.6 | ||||||||||||
Fixed income securities | — | 4.3 | — | 4.3 | ||||||||||||
Mutual funds | 2.7 | — | — | 2.7 | ||||||||||||
Interest rate swaps/caps | — | 173.1 | — | 173.1 | ||||||||||||
Foreign exchange contracts | — | 0.6 | — | 0.6 | ||||||||||||
Forward commitments to sell residential | — | 0.3 | — | 0.3 | ||||||||||||
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Total | $ | 901.8 | $ | 3,728.5 | $ | — | $ | 4,630.3 | ||||||||
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Financial liabilities: | ||||||||||||||||
Interest rate swaps/caps | $ | — | $ | 121.0 | $ | — | $ | 121.0 | ||||||||
Risk participation agreements (1) | — | — | — | — | ||||||||||||
Foreign exchange contracts | — | 0.3 | — | 0.3 | ||||||||||||
Interest rate-lock commitments on residential mortgage loans | — | 0.4 | — | 0.4 | ||||||||||||
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Total | $ | — | $ | 121.7 | $ | — | $ | 121.7 | ||||||||
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1.At December 31, 2018, the fair value |
There were no transfers into or out of the Level 1 or Level 2 categories during the nine months ended September 30, 2017 or 2016.
risk participation agreements totaled less than $0.1 million (see Note 12).
Held-for-Sale
Fair Value Measurements Using | ||||||||||||||||
As of September 30, 2017 (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Loans held for sale (1) | $ | — | $ | 15.0 | $ | — | $ | 15.0 | ||||||||
Impaired loans (2) | — | — | 64.9 | 64.9 | ||||||||||||
REO and repossessed assets (3) | — | — | 16.4 | 16.4 | ||||||||||||
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Total | $ | — | $ | 15.0 | $ | 81.3 | $ | 96.3 | ||||||||
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| |||||||||
Fair Value Measurements Using | ||||||||||||||||
As of December 31, 2016 (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Loans held for sale (1) | $ | — | $ | 39.3 | $ | — | $ | 39.3 | ||||||||
Impaired loans (2) | — | — | 55.9 | 55.9 | ||||||||||||
REO and repossessed assets (3) | — | — | 19.3 | 19.3 | ||||||||||||
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Total | $ | — | $ | 39.3 | $ | 75.2 | $ | 114.5 | ||||||||
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Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||
As of June 30, 2019 (in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||
Loans held-for-sale (1) | $ | — | $ | 17.4 | $ | — | $ | 17.4 | |||||||||||||||||||||||||||
Impaired loans (2) | — | — | 40.2 | 40.2 | |||||||||||||||||||||||||||||||
REO and repossessed assets (3) | — | — | 14.4 | 14.4 | |||||||||||||||||||||||||||||||
Total | $ | — | $ | 17.4 | $ | 54.6 | $ | 72.0 | |||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||
As of December 31, 2018 (in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||
Loans held-for-sale (1) | $ | — | $ | 19.5 | $ | — | $ | 19.5 | |||||||||||||||||||||||||||
Impaired loans (2) | — | — | 55.2 | 55.2 | |||||||||||||||||||||||||||||||
REO and repossessed assets (3) | — | — | 18.1 | 18.1 | |||||||||||||||||||||||||||||||
Total | $ | — | $ | 19.5 | $ | 73.3 | $ | 92.8 |
As discussed previously, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date (an “exit price” approach to fair value).
Acceptable valuation techniques (when quoted market prices are not available) that might be used to estimate the fair value of financial instruments include discounted cash flow analyses and comparison to similar instruments. Such estimates are highly subjective and require judgments regarding significant matters such as the amount and timing of future cash flows and the selection of discount rates that appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are made as of a specific point in time, they are susceptible to material near-term changes. Fair values estimated in this manner do not reflect any premium or discount that could result from the sale of a large volume of a particular financial instrument, nor do they reflect possible tax ramifications or estimated transaction costs.
The following is a description of the principal valuation methods used by People’s United for those financial instruments that are not measured at fair value either on a recurring ornon-recurring basis:
Cash, Short-Term Investments and Securities Purchased Under Agreements to Resell
Cash and due from banks are classified as Level 1. Short-term investments and securities purchased under agreements to resell have fair values that approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities, and present relatively low credit risk and interest rate risk (“IRR”). As such, these fair values are classified as Level 2.
Securities Held to Maturity
When available, the fair values of investment securities held to maturity are measured based on quoted market prices for identical securities in active markets and, accordingly, are classified as Level 1 assets. When quoted market prices for identical securities are not available, fair values are estimated based on quoted prices for similar assets in active markets or through the use of pricing models containing observable inputs (i.e. market interest rates, financial information and credit ratings of the issuer, etc.). These fair values are included in Level 2. In cases where there may be limited information available and/or little or no market activity for the underlying security, fair value is estimated using pricing models containing unobservable inputs and classified as Level 3.
FHLB andFRB-NY Stock
Both FHLB andFRB-NY stock arenon-marketable equity securities classified as Level 2 and reported at cost, which equals par value (the amount at which shares have been redeemed in the past). No significant observable market data is available for either of these securities.
Loans
For valuation purposes, the loan portfolio is segregated into its significant categories, which are commercial real estate, commercial and industrial, equipment financing, residential mortgage, home equity and other consumer. These categories are further segregated, where appropriate, into components based on significant financial characteristics such as type of interest rate (fixed or adjustable) and payment status (performing ornon-performing). Fair values are estimated for each component using a valuation method selected by management.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
The fair values of performing loans were estimated by discounting the anticipated cash flows from the respective portfolios, assuming future prepayments and using market interest rates for new loans with comparable credit risk. As a result, the valuation method for performing loans, which is consistent with certain guidance provided in accounting standards, does not fully incorporate the “exit price” approach to fair value. The fair values ofnon-performing loans were based on recent collateral appraisals or management’s analysis of estimated cash flows discounted at rates commensurate with the credit risk involved. The estimated fair values of residential mortgage loans are classified as Level 2 as a result of the observable market inputs (i.e. market interest rates, prepayment assumptions, etc.) available for this loan type. The fair values of all other loan types are classified as Level 3 as the inputs contained within the respective discounted cash flow models are largely unobservable and, instead, reflect management’s own estimates of the assumptions a market participant would use in pricing such loans. The fair value of home equity lines of credit was based on the outstanding loan balances, and therefore does not reflect the value associated with earnings from future loans to existing customers.
Deposit Liabilities
The fair values of time deposits represent contractual cash flows discounted at current rates determined by reference to observable inputs including a LIBOR/swap curve over the remaining period to maturity. As such, these fair values are classified as Level 2. The fair values of other deposit liabilities (those with no stated maturity, such as checking and savings accounts) are equal to the carrying amounts payable on demand. Deposit fair values do not include the intangible value of core deposit relationships that comprise a significant portion of People’s United’s deposit base. Management believes that People’s United’s core deposit relationships provide a relatively stable,low-cost funding source that has a substantial intangible value separate from the deposit balances.
Borrowings and Notes and Debentures
The fair values of federal funds purchased and customer repurchase agreements are equal to the respective carrying amounts due to the short maturities (generally overnight). The fair values of FHLB advances and other borrowings represent contractual repayments discounted using interest rates currently available on borrowings with similar characteristics and remaining maturities and are classified as Level 2. The fair values of notes and debentures were based on dealer quotes and are classified as Level 2.
Lending-Related Financial Instruments
The estimated fair values of People’s United’s lending-related financial instruments approximate the respective carrying amounts. Such instruments include commitments to extend credit, unadvanced lines of credit and letters of credit, for which fair values were estimated based on an analysis of the interest rates and fees currently charged to enter into similar transactions, considering the remaining terms of the instruments and the creditworthiness of the potential borrowers.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Estimated Fair Value | ||||||||||||||||||||
Carrying Amount | Measurements Using | |||||||||||||||||||
As of September 30, 2017 (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 414.1 | $ | 414.1 | $ | — | $ | — | $ | 414.1 | ||||||||||
Short-term investments | 302.5 | — | 302.5 | — | 302.5 | |||||||||||||||
Securities held to maturity | 3,387.6 | — | 3,434.1 | 1.5 | 3,435.6 | |||||||||||||||
FHLB and FRB stock | 320.9 | — | 320.9 | — | 320.9 | |||||||||||||||
Total loans, net (1) | 32,086.2 | — | 6,583.6 | 25,363.9 | 31,947.5 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | 5,235.8 | — | 5,232.4 | — | 5,232.4 | |||||||||||||||
Other deposits | 27,311.5 | — | 27,311.5 | — | 27,311.5 | |||||||||||||||
FHLB advances | 3,074.1 | — | 3,076.0 | — | 3,076.0 | |||||||||||||||
Federal funds purchased | 543.0 | — | 543.0 | — | 543.0 | |||||||||||||||
Customer repurchase agreements | 295.8 | — | 295.8 | — | 295.8 | |||||||||||||||
Other borrowings | 231.1 | — | 230.9 | — | 230.9 | |||||||||||||||
Notes and debentures | 906.2 | — | 902.6 | — | 902.6 |
Carrying Amount | Estimated Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||||
As of June 30, 2019 (in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 505.9 | $ | 505.9 | $ | — | $ | — | $ | 505.9 | |||||||||||||||||||||||||||||||
Short-term investments | 274.8 | — | 274.8 | — | 274.8 | ||||||||||||||||||||||||||||||||||||
Debt securities held-to-maturity | 3,807.5 | — | 3,932.3 | 1.5 | 3,933.8 | ||||||||||||||||||||||||||||||||||||
FHLB and FRB stock | 289.4 | — | 289.4 | — | 289.4 | ||||||||||||||||||||||||||||||||||||
Total loans, net (1) | 38,272.5 | — | 9,369.4 | 29,026.1 | 38,395.5 | ||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||
Time deposits | 8,447.9 | — | 8,469.4 | — | 8,469.4 | ||||||||||||||||||||||||||||||||||||
Other deposits | 31,019.4 | — | 31,019.4 | — | 31,019.4 | ||||||||||||||||||||||||||||||||||||
FHLB advances | 2,054.4 | — | 2,055.2 | — | 2,055.2 | ||||||||||||||||||||||||||||||||||||
Federal funds purchased | 1,110.0 | — | 1,110.0 | — | 1,110.0 | ||||||||||||||||||||||||||||||||||||
Customer repurchase agreements | 235.2 | — | 235.2 | — | 235.2 | ||||||||||||||||||||||||||||||||||||
Notes and debentures | 911.5 | — | 920.7 | — | 920.7 |
Carrying Amount | Estimated Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2018 (in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 665.7 | $ | 665.7 | $ | — | $ | — | $ | 665.7 | |||||||||||||||||||||||||||||||
Short-term investments | 266.3 | — | 266.3 | — | 266.3 | ||||||||||||||||||||||||||||||||||||
Debt securities held-to-maturity | 3,792.3 | — | 3,774.4 | 1.5 | 3,775.9 | ||||||||||||||||||||||||||||||||||||
FHLB and FRB stock | 303.4 | — | 303.4 | — | 303.4 | ||||||||||||||||||||||||||||||||||||
Total loans, net (1) | 34,945.8 | — | 7,806.1 | 26,800.2 | 34,606.3 | ||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||
Time deposits | 6,916.2 | — | 6,884.0 | — | 6,884.0 | ||||||||||||||||||||||||||||||||||||
Other deposits | 29,242.8 | — | 27,242.8 | — | 27,242.8 | ||||||||||||||||||||||||||||||||||||
FHLB advances | 2,404.5 | — | 2,404.5 | — | 2,404.5 | ||||||||||||||||||||||||||||||||||||
Federal funds purchased | 845.0 | — | 845.0 | — | 845.0 | ||||||||||||||||||||||||||||||||||||
Customer repurchase agreements | 332.9 | — | 332.9 | — | 332.9 | ||||||||||||||||||||||||||||||||||||
Other borrowings | 11.0 | — | 11.0 | — | 11.0 | ||||||||||||||||||||||||||||||||||||
Notes and debentures | 895.8 | — | 893.4 | — | 893.4 |
NOTE 12. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES |
Estimated Fair Value | ||||||||||||||||||||
Carrying Amount | Measurements Using | |||||||||||||||||||
As of December 31, 2016 (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 432.4 | $ | 432.4 | $ | — | $ | — | $ | 432.4 | ||||||||||
Short-term investments | 181.7 | — | 181.7 | — | 181.7 | |||||||||||||||
Securities held to maturity | 2,005.4 | — | 2,011.2 | 1.5 | 2,012.7 | |||||||||||||||
FHLB and FRB stock | 315.8 | — | 315.8 | — | 315.8 | |||||||||||||||
Total loans, net (1) | 29,459.7 | — | 6,028.4 | 23,238.1 | 29,266.5 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | 4,542.2 | — | 4,539.7 | — | 4,539.7 | |||||||||||||||
Other deposits | 25,318.6 | — | 25,318.6 | — | 25,318.6 | |||||||||||||||
FHLB advances | 3,061.1 | — | 3,064.4 | — | 3,064.4 | |||||||||||||||
Federal funds purchased | 617.0 | — | 617.0 | — | 617.0 | |||||||||||||||
Customer repurchase agreements | 343.3 | — | 343.3 | — | 343.3 | |||||||||||||||
Other borrowings | 35.4 | — | 35.4 | — | 35.4 | |||||||||||||||
Notes and debentures | 1,030.1 | — | 1,000.0 | — | 1,000.0 |
NOTE 12. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
2019.
Swaps
People’s United had previously entered into a pay fixed/receive floating interest rate swap to hedge the LIBOR-based floating rate payments on the Company’s $125 million 5.80% fixed-rate/floating-rate subordinated notes. On February 14, 2017, the Company repaid the subordinated notes and, concurrent with the repayment, the interest rate swap designated to these subordinated notes matured. This swap was accounted for as a cash flow hedge.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
As a result of the LEAF acquisition, the Company assumed two interest-rate caps with a total notional amount of $150 million, both of which mature in December 2017. Prior to the acquisition, LEAF entered into derivative contracts to reduce potential volatility in its financing costs and to manage its interest rate exposure to changes in one-month LIBOR. Subsequent to the LEAF acquisition, hedge accounting was not applied for these derivatives.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Fair Values (1) | ||||||||||||||||||||||||||||
Notional Amounts | Assets | Liabilities | ||||||||||||||||||||||||||
(in millions) | Type of Hedge | Sept. 30, 2017 | Dec. 31, 2016 | Sept. 30, 2017 | Dec. 31, 2016 | Sept. 30, 2017 | Dec. 31, 2016 | |||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Interest rate swaps/caps: | ||||||||||||||||||||||||||||
Commercial customers | N/A | $ | 6,101.2 | $ | 5,612.2 | $ | 91.5 | $ | 93.9 | $ | 39.7 | $ | 46.9 | |||||||||||||||
Institutional counterparties | N/A | 5,958.2 | 5,620.2 | 10.4 | 65.6 | 20.8 | 74.0 | |||||||||||||||||||||
Risk participation agreements (2) | N/A | 383.4 | 251.9 | — | — | — | — | |||||||||||||||||||||
Foreign exchange contracts | N/A | 42.6 | 101.2 | 0.2 | 0.6 | 0.2 | 0.3 | |||||||||||||||||||||
Forward commitments to sell | N/A | 26.0 | 48.6 | 0.6 | 0.3 | — | — | |||||||||||||||||||||
Interest rate-lock commitments on residential mortgage loans | N/A | 31.7 | 57.0 | — | — | 0.7 | 0.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total | 102.7 | 160.4 | 61.4 | 121.6 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||||||||||
Subordinated notes | Fair value | 375.0 | 375.0 | — | 13.6 | — | — | |||||||||||||||||||||
Loans | Cash flow | 210.0 | — | — | — | — | — | |||||||||||||||||||||
Subordinated notes | Cash flow | — | 125.0 | — | — | — | 0.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total | — | 13.6 | — | 0.1 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total fair value of derivatives | $ | 102.7 | $ | 174.0 | $ | 61.4 | $ | 121.7 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
Fair Values (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amounts | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Type of Hedge | June 30, 2019 | Dec 31, 2018 | June 30, 2019 | Dec 31, 2018 | June 30, 2019 | Dec 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial customers | N/A | $ | 7,860.7 | $ | 7,455.9 | $ | 293.9 | $ | 76.3 | $ | 9.1 | $ | 102.6 | ||||||||||||||||||||||||||||||||||||||||||||||
Institutional counterparties | N/A | 7,667.7 | 7,161.3 | 8.9 | 22.6 | 57.9 | 32.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial customers | N/A | 330.6 | 329.1 | 1.7 | 0.6 | 0.8 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional counterparties | N/A | 330.6 | 329.1 | 0.8 | 2.5 | 1.7 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk participation agreements (2) | N/A | 677.0 | 576.5 | — | — | 0.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | N/A | 49.6 | 145.2 | 0.4 | 0.9 | 0.5 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Forward commitments to sell residential mortgage loans | N/A | 21.2 | 9.5 | 0.2 | 0.1 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate-lock commitments on residential mortgage loans | N/A | 37.0 | 13.6 | — | — | 0.2 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 305.9 | 103.0 | 70.4 | 139.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated notes | Fair value | 375.0 | 375.0 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Cash flow | 210.0 | 210.0 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of derivatives | $ | 305.9 | $ | 103.0 | $ | 70.4 | $ | 139.0 |
Amount of Pre-Tax Gain (Loss) | Amount of Pre-Tax Gain (Loss) | |||||||||||||||||||
Type of Hedge | Recognized in Earnings (1) | Recognized in AOCL | ||||||||||||||||||
Nine months ended September 30 (in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Interest rate swaps/caps: | ||||||||||||||||||||
Commercial customers | N/A | $ | 45.4 | $ | 210.7 | $ | — | $ | — | |||||||||||
Institutional counterparties | N/A | (39.1 | ) | (200.3 | ) | — | — | |||||||||||||
Foreign exchange contracts | N/A | 0.3 | (0.6 | ) | — | — | ||||||||||||||
Risk participation agreements | N/A | 0.5 | 0.1 | — | — | |||||||||||||||
Forward commitments to sell residential mortgage loans | N/A | 0.1 | 0.8 | — | — | |||||||||||||||
Interest rate-lock commitments on residential mortgage loans | N/A | (0.1 | ) | (1.1 | ) | — | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total | 7.1 | 9.6 | — | — | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Interest rate swaps | Fair value | 4.5 | 6.4 | — | — | |||||||||||||||
Interest rate swaps | Cash flow | 0.6 | (0.6 | ) | — | (0.2 | ) | |||||||||||||
Interest rate locks | Cash flow | 0.1 | 0.1 | — | — | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total | 5.2 | 5.9 | — | (0.2 | ) | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 12.3 | $ | 15.5 | $ | — | $ | (0.2 | ) | |||||||||||
|
|
|
|
|
|
|
|
Type of Hedge | Amount of Pre-Tax Gain (Loss) Recognized in Earnings (1) | Amount of Pre-Tax Gain (Loss) Recognized in AOCL | |||||||||||||||||||||||||||||||||||||||
Six months ended June 30 (in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||||||||
Commercial customers | N/A | $ | 320.4 | $ | (139.1) | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Institutional counterparties | N/A | (310.9) | 144.1 | — | — | ||||||||||||||||||||||||||||||||||||
Interest rate caps: | |||||||||||||||||||||||||||||||||||||||||
Commercial customers | N/A | 2.6 | (0.6) | — | — | ||||||||||||||||||||||||||||||||||||
Institutional counterparties | N/A | (2.7) | 0.6 | — | — | ||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | N/A | 0.4 | 0.2 | — | — | ||||||||||||||||||||||||||||||||||||
Risk participation agreements | N/A | 0.7 | 0.3 | — | — | ||||||||||||||||||||||||||||||||||||
Forward commitments to sell residential mortgage loans | N/A | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Interest rate-lock commitments on residential mortgage loans | N/A | (0.1) | — | — | — | ||||||||||||||||||||||||||||||||||||
Total | 10.4 | 5.5 | — | — | |||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Fair value | (0.4) | (1.5) | — | — | ||||||||||||||||||||||||||||||||||||
Interest rate swaps | Cash flow | (0.8) | — | 2.0 | (2.6) | ||||||||||||||||||||||||||||||||||||
Interest rate locks (2) | Cash flow | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total | (1.2) | (1.5) | 2.0 | (2.6) | |||||||||||||||||||||||||||||||||||||
Total | $ | 9.2 | $ | 4.0 | $ | 2.0 | $ | (2.6) |
NOTE 13. BALANCE SHEET OFFSETTING |
NOTE 13. BALANCE SHEET OFFSETTING
Effective January 3, 2017, the
both dates.
Gross Amount Recognized | Gross Amount Offset | Net Amount Presented | Gross Amounts Not Offset | |||||||||||||||||||||
Financial | Net | |||||||||||||||||||||||
As of September 30, 2017 (in millions) | Instruments | Collateral | Amount | |||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Interest rate swaps/caps: | ||||||||||||||||||||||||
Counterparty A | $ | 1.7 | $ | — | $ | 1.7 | $ | (1.7 | ) | $ | — | $ | — | |||||||||||
Counterparty B | 0.8 | — | 0.8 | (0.8 | ) | — | — | |||||||||||||||||
Counterparty C | 1.4 | — | 1.4 | (1.4 | ) | — | — | |||||||||||||||||
Counterparty D | 2.8 | — | 2.8 | (2.8 | ) | — | — | |||||||||||||||||
Counterparty E | 2.4 | — | 2.4 | — | — | 2.4 | ||||||||||||||||||
Other counterparties | 1.3 | — | 1.3 | (0.3 | ) | (0.9 | ) | 0.1 | ||||||||||||||||
Foreign exchange contracts | 0.2 | — | 0.2 | — | — | 0.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 10.6 | $ | — | $ | 10.6 | $ | (7.0 | ) | $ | (0.9 | ) | $ | 2.7 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial liabilities: | ||||||||||||||||||||||||
Interest rate swaps/caps: | ||||||||||||||||||||||||
Counterparty A | $ | 3.2 | $ | — | $ | 3.2 | $ | (1.7 | ) | $ | (1.5 | ) | $ | — | ||||||||||
Counterparty B | 6.9 | — | 6.9 | (0.8 | ) | (6.1 | ) | — | ||||||||||||||||
Counterparty C | 3.7 | — | 3.7 | (1.4 | ) | (2.3 | ) | — | ||||||||||||||||
Counterparty D | 5.9 | — | 5.9 | (2.8 | ) | (3.1 | ) | — | ||||||||||||||||
Other counterparties | 1.2 | — | 1.2 | (0.3 | ) | (0.9 | ) | — | ||||||||||||||||
Foreign exchange contracts | 0.2 | — | 0.2 | — | — | 0.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 21.1 | $ | — | $ | 21.1 | $ | (7.0 | ) | $ | (13.9 | ) | $ | 0.2 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Gross Amount Recognized | Gross Amount Offset | Net Amount Presented | Gross Amounts Not Offset | ||||||||||||||||||||||||||||||||||||||
Financial Instruments | Net Amount | ||||||||||||||||||||||||||||||||||||||||
As of June 30, 2019 (in millions) | Collateral | ||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||||||||
Counterparty A | $ | 0.4 | $ | — | $ | 0.4 | $ | (0.4) | $ | — | $ | — | |||||||||||||||||||||||||||||
Counterparty B | 0.1 | — | 0.1 | (0.1) | — | — | |||||||||||||||||||||||||||||||||||
Counterparty C | 0.3 | — | 0.3 | (0.3) | — | — | |||||||||||||||||||||||||||||||||||
Counterparty D | 0.8 | — | 0.8 | (0.8) | — | — | |||||||||||||||||||||||||||||||||||
Counterparty E | 7.0 | — | 7.0 | — | — | 7.0 | |||||||||||||||||||||||||||||||||||
Other counterparties | 1.1 | — | 1.1 | (1.1) | — | — | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 0.4 | — | 0.4 | — | — | 0.4 | |||||||||||||||||||||||||||||||||||
Total | $ | 10.1 | $ | — | $ | 10.1 | $ | (2.7) | $ | — | $ | 7.4 | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||||||||
Counterparty A | $ | 2.4 | $ | — | $ | 2.4 | $ | (0.4) | $ | (2.0) | $ | — | |||||||||||||||||||||||||||||
Counterparty B | 6.2 | — | 6.2 | (0.1) | (6.1) | — | |||||||||||||||||||||||||||||||||||
Counterparty C | 22.0 | — | 22.0 | (0.3) | (21.7) | — | |||||||||||||||||||||||||||||||||||
Counterparty D | 6.4 | — | 6.4 | (0.8) | (5.5) | 0.1 | |||||||||||||||||||||||||||||||||||
Counterparty E | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Other counterparties | 22.6 | — | 22.6 | (1.1) | (21.5) | — | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 0.5 | — | 0.5 | — | — | 0.5 | |||||||||||||||||||||||||||||||||||
Total | $ | 60.1 | $ | — | $ | 60.1 | $ | (2.7) | $ | (56.8) | $ | 0.6 |
Gross Amount Recognized | Gross Amount Offset | Net Amount Presented | Gross Amounts Not Offset | |||||||||||||||||||||
Financial | Net | |||||||||||||||||||||||
As of December 31, 2016 (in millions) | Instruments | Collateral | Amount | |||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Interest rate swaps/caps: | ||||||||||||||||||||||||
Counterparty A | $ | 1.9 | $ | — | $ | 1.9 | $ | (1.9 | ) | $ | — | $ | — | |||||||||||
Counterparty B | 1.0 | — | 1.0 | (1.0 | ) | — | — | |||||||||||||||||
Counterparty C | 1.7 | — | 1.7 | (1.7 | ) | — | — | |||||||||||||||||
Counterparty D | 3.4 | — | 3.4 | (3.4 | ) | — | — | |||||||||||||||||
Counterparty E | 69.6 | — | 69.6 | (50.0 | ) | (19.6 | ) | — | ||||||||||||||||
Other counterparties | 1.6 | — | 1.6 | (0.3 | ) | (1.3 | ) | — | ||||||||||||||||
Foreign exchange contracts | 0.6 | — | 0.6 | — | — | 0.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 79.8 | $ | — | $ | 79.8 | $ | (58.3 | ) | $ | (20.9 | ) | $ | 0.6 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial liabilities: | ||||||||||||||||||||||||
Interest rate swaps/caps: | ||||||||||||||||||||||||
Counterparty A | $ | 4.3 | $ | — | $ | 4.3 | $ | (1.9 | ) | $ | (2.4 | ) | $ | — | ||||||||||
Counterparty B | 7.7 | — | 7.7 | (1.0 | ) | (6.7 | ) | — | ||||||||||||||||
Counterparty C | 3.4 | — | 3.4 | (1.7 | ) | (1.1 | ) | 0.6 | ||||||||||||||||
Counterparty D | 6.9 | — | 6.9 | (3.4 | ) | (1.7 | ) | 1.8 | ||||||||||||||||
Counterparty E | 50.0 | — | 50.0 | (50.0 | ) | — | — | |||||||||||||||||
Other counterparties | 1.8 | — | 1.8 | (0.3 | ) | (1.5 | ) | — | ||||||||||||||||
Foreign exchange contracts | 0.3 | — | 0.3 | — | — | 0.3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 74.4 | $ | — | $ | 74.4 | $ | (58.3 | ) | $ | (13.4 | ) | $ | 2.7 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Gross Amount Recognized | Gross Amount Offset | Net Amount Presented | Gross Amounts Not Offset | ||||||||||||||||||||||||||||||||||||||
Financial Instruments | Net Amount | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2018 (in millions) | Collateral | ||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||||||||
Counterparty A | $ | 3.1 | $ | — | $ | 3.1 | $ | (1.4) | $ | (1.7) | $ | — | |||||||||||||||||||||||||||||
Counterparty B | 2.5 | — | 2.5 | (2.5) | — | — | |||||||||||||||||||||||||||||||||||
Counterparty C | 4.8 | — | 4.8 | (3.7) | (1.1) | — | |||||||||||||||||||||||||||||||||||
Counterparty D | 3.6 | — | 3.6 | (2.7) | (0.1) | 0.8 | |||||||||||||||||||||||||||||||||||
Counterparty E | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Other counterparties | 11.1 | — | 11.1 | (5.4) | (5.7) | — | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 0.9 | — | 0.9 | — | — | 0.9 | |||||||||||||||||||||||||||||||||||
Total | $ | 26.0 | $ | — | $ | 26.0 | $ | (15.7) | $ | (8.6) | $ | 1.7 | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||||||||
Counterparty A | $ | 1.4 | $ | — | $ | 1.4 | $ | (1.4) | $ | — | $ | — | |||||||||||||||||||||||||||||
Counterparty B | 3.8 | — | 3.8 | (2.5) | (1.2) | 0.1 | |||||||||||||||||||||||||||||||||||
Counterparty C | 3.7 | — | 3.7 | (3.7) | — | — | |||||||||||||||||||||||||||||||||||
Counterparty D | 2.7 | — | 2.7 | (2.7) | — | — | |||||||||||||||||||||||||||||||||||
Counterparty E | 16.0 | — | 16.0 | — | — | 16.0 | |||||||||||||||||||||||||||||||||||
Other counterparties | 5.4 | — | 5.4 | (5.4) | — | — | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 0.8 | — | 0.8 | — | — | 0.8 | |||||||||||||||||||||||||||||||||||
Total | $ | 33.8 | $ | — | $ | 33.8 | $ | (15.7) | $ | (1.2) | $ | 16.9 |
As of September 30, 2017 (in millions) | Gross Amount Recognized | Gross Amount Offset | Net Amount Presented | |||||||||
Total resale agreements | $ | 250.0 | $ | (250.0 | ) | $ | — | |||||
|
|
|
|
|
| |||||||
Total repurchase agreements | $ | 250.0 | $ | (250.0 | ) | $ | — | |||||
|
|
|
|
|
|
$465.9 million and $457.2 million, respectively.
As of June 30, 2019 (in millions) | Gross Amount Recognized | Gross Amount Offset | Net Amount Presented | ||||||||||||||
Total resale agreements | $ | 450.0 | $ | (450.0) | $ | — | |||||||||||
Total repurchase agreements | $ | 450.0 | $ | (450.0) | $ | — | |||||||||||
As of December 31, 2018 (in millions) | Gross Amount Recognized | Gross Amount Offset | Net Amount Presented | ||||||||||||||
Total resale agreements | $ | 450.0 | $ | (450.0) | $ | — | |||||||||||
Total repurchase agreements | $ | 450.0 | $ | (450.0) | $ | — |
NOTE 14. NEW ACCOUNTING STANDARDS
NOTE 14. LEASES |
(in millions) | June 30, 2019 | ||||||||||
Lease payments receivable | $ | 1,357.3 | |||||||||
Estimated residual value of leased assets | 124.1 | ||||||||||
Gross investment in lease financing receivables | 1,481.4 | ||||||||||
Plus: Deferred origination costs | 13.8 | ||||||||||
Less: Unearned income | (152.5) | ||||||||||
Total net investment in lease financing receivables | $ | 1,342.7 |
(in millions) | June 30, 2019 | ||||
2019 (1) | $ | 263.7 | |||
2020 | 437.6 | ||||
2021 | 344.3 | ||||
2022 | 232.2 | ||||
2023 | 131.6 | ||||
Later years | 72.0 | ||||
Total | $ | 1,481.4 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
(in millions) | June 30, 2019 | June 30, 2019 | |||||||||||||||||||||||||||
Operating lease cost | $ | 15.1 | $ | 30.4 | |||||||||||||||||||||||||
Variable lease cost | 2.1 | 4.4 | |||||||||||||||||||||||||||
Sublease income | (0.3) | (0.7) | |||||||||||||||||||||||||||
Net lease cost | $ | 16.9 | $ | 34.1 |
(dollars in millions) | June 30, 2019 | ||||||||||
Lease ROU assets | $ | 229.8 | |||||||||
Lease liabilities | 253.8 | ||||||||||
Cash payments included in the measurement of lease liabilities reported in operating cash flows | 30.8 | ||||||||||
ROU assets obtained in exchange for lessee operating lease liabilities (1) | 11.5 | ||||||||||
Weighted average discount rate | 3.33 | % | |||||||||
Weighted average remaining lease term (in years) | 6.8 |
(in millions) | June 30, 2019 | ||||||||||
2019 (1) | $ | 30.3 | |||||||||
2020 | 56.9 | ||||||||||
2021 | 53.9 | ||||||||||
2022 | 36.0 | ||||||||||
2023 | 25.1 | ||||||||||
Later years | 86.1 | ||||||||||
Total lease payments | 288.3 | ||||||||||
Less: Interest | (34.5) | ||||||||||
Total lease liabilities | $ | 253.8 |
NOTE 15. NEW ACCOUNTING STANDARDS |
Derivatives and Hedging
2019
Investments – Equity Method and Joint Ventures
In March 2016, the FASB amended its standards with respect to the equity method of accounting by eliminating the requirement that, upon an investment qualifying for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations and retained earnings retrospectively, as if the equity method of accounting had been in effect during all previous periods that the investment was held. Rather, under the new guidance, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. Instead, any unrealized holding gain or loss is to be recognized through other comprehensive income on the date the investment qualifies for use of the equity method. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2017 and did not have a significant impact on the Company’s Consolidated Financial Statements.
Stock Compensation
In March 2016, the FASB amended its standards with respect to certain aspects of the accounting forshare-based payment awards, including: (i) the related income tax consequences; (ii) the classification of awards as either equity or liabilities; and (iii) the classification in the statement of cash flows. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2017. As a result, the Company realized windfall income tax benefits totaling $1.3 million for the nine months ended September 30, 2017. This amount, which was recognized as a discrete period income tax benefit, served to lower the Company’syear-to-date effective income tax rate by 0.05%.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Standards effective in 2018
Revenue Recognition
In May 2014, the FASB amended its standards with respect to revenue recognition. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance, providing a unified model to determine when and how revenue is recognized. The underlying principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments also require enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. As originally issued, this new guidance, which can be applied retrospectively or through the use of the cumulative effect transition method, was to become effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2016 (January 1, 2017 for People’s United) and early adoption was not permitted.
In July 2015, the FASB approved aone-year deferral of the effective date (now January 1, 2018 for People’s United) with early adoption, as of the original effective date, permitted. Since that date, the FASB has issued amendments to clarify the implementation guidance and add some practical expedients in certain areas, including: (i) principal versus agent considerations; (ii) the identification of performance obligations; and (iii) certain aspects of the accounting for licensing arrangements. These amendments do not change the core principle of the guidance and are effective for and follow the same transition requirements as the core principle.
The Company will adopt this guidance in the first quarter of 2018 using the modified retrospective method with a cumulative-effect adjustment to opening retained earnings, as appropriate. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities (approximately 75%) andnon-interest income (approximately 25%). The scope of the guidance explicitly excludes net interest income as well as other revenues associated with financial assets and liabilities, including loans, leases, securities and derivatives. Accordingly, the majority of the Company’s revenues will not be affected. Certain other recurring revenue streams are within the scope of the guidance, including service charges and fees on deposit accounts, card-based and other non-deposit fees, and revenues associated with certain products and services offered by the Company’s trust and investment management, insurance and brokerage businesses.
The Company’s assessment ofin-scope revenue streams is substantially complete and its preliminary analysis suggests that adoption of the guidance, including the related transition adjustment, as appropriate, is not expected to have a material impact on the Company’s Consolidated Financial Statements, its current accounting policies and practices or the timing or amount of revenue recognized. However, as new interpretative guidance related to the adoption of the amended standard is issued, the Company’s preliminary conclusions with respect to materiality could be impacted. In connection with its adoption efforts, the Company has, where appropriate, evaluated necessary changes to business processes, systems and internal controls in order to support the recognition, measurement and disclosure requirements of the new standard.
Presentation of Deferred Taxes
In November 2015, the FASB amended its standards with respect to the presentation of deferred income taxes to eliminate the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of condition, thereby simplifying the presentation of deferred income taxes. For public business entities, this new amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United) and may be applied either prospectively or retrospectively to all periods presented. Earlier application of the amendment is permitted as of the beginning of an interim or annual reporting period. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Recognition and Measurement of Financial Instruments
In January 2016, the FASB amended its standards to address certain aspects of recognition, presentation and disclosure of financial instruments. The amended guidance (i) requires that equity investments be measured at fair value with changes in fair value recognized in net income and (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by permitting a qualitative assessment to identify impairment. Both FRB-NY and FHLB stock will continue to be presented at cost. The guidance also contains additional disclosure and presentation requirements associated with financial instruments. Specifically, the standard emphasizes the existing requirement to use “exit price” when determining fair value for disclosure purposes, clarifying that entities should not make use of a practicability exception in determining the fair value of loans.
For public business entities, this new guidance is effective in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United). The cumulative effect transition method will be applied to all outstanding instruments as of the date of adoption, while changes to the accounting for equity investments without readily determinable fair values will be applied prospectively. While the Company continues to monitor the potential impact of the amended guidance on its Consolidated Financial Statements, such impact is indeterminable at this time as it will be dependent upon portfolio composition at the adoption date. As noted in Note 3, at September 30, 2017, the Company’s securities portfolio included equity securities with an amortized cost of $9.6 million and a fair value of $9.0 million. The Company does expect to refine the calculation used to determine the fair value of itsheld-for-investment loan portfolio in connection with adopting the standard.
Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments
In August 2016, the FASB amended its standards to address the classification of certain cash receipts and payments within the statement of cash flows. Specifically, the amended guidance addresses the following: (i) debt prepayment or debt extinguishment costs; (ii) settlement ofzero-coupon bonds; (iii) contingent payments made after a business combination; (iv) proceeds from the settlement of insurance claims; (v) proceeds from the settlement of corporate-owned life insurance policies, including BOLI policies; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions; and (viii) separately identifiable cash flows and application of the predominance principle. For public business entities, this new guidance is effective in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United). The retrospective transition method will be applied to all periods presented and early adoption is permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.
Asset Derecognition and Accounting for Partial Sales of Nonfinancial Assets
In February 2017, the FASB amended its standards to clarify the scope of its guidance on derecognition of a nonfinancial asset and provide additional guidance on the definition ofin-substance nonfinancial assets and partial sales of nonfinancial assets. Under prior guidance, several different accounting models existed for use in evaluating whether the transfer of certain assets qualified for sale treatment. The amended guidance reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. For public business entities, this new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United). The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
In March 2017, the FASB amended its standards to (i) require that the service cost component of net benefit cost associated with pension and postretirement plans be reported in the same line item in which the related employees’ compensation cost is reported and (ii) specify that only the service cost component is eligible for capitalization. The other components of net benefit cost, which may not be capitalized, are to be presented separately. For public business entities, this new guidance, which is to be applied retrospectively, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United) and early adoption is permitted. The adoption of this amendment will result in a reclassification of certain net benefit cost components from compensation and benefits expense to othernon-interest expense and, as such, is not expected to have a significant impact on the Company’s Consolidated Financial Statements.
Stock Compensation
In July 2017, the FASB amended its standards with respect to share-based payment awards to provide explicit guidance pertaining to the provisions of modification accounting. The amendment clarifies that an entity should not account for the effects of a modification if the award’s fair value, vesting conditions and classification (as either debt or equity) are the same immediately before and after the modification. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United) and is to be applied prospectively to awards modified on or after the adoption date. Earlier application of the amendment is permitted. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.
Standards effective in 2019
Accounting for Leases
In February 2016, the FASB amended its standards with respect to the accounting for leases. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and requires that an operating lease be recognized on the statement of condition as a“right-of-use” ROU asset along with a corresponding liability representing the rent obligation. Key aspects of current lessor accounting generally remain unchanged from existing guidance. This standard is expected to result in an increase to assets and liabilities recognized and, therefore, increase risk-weighted assets for regulatory capital purposes.guidance, although the definition of eligible initial direct costs (“IDC”) has been amended. The guidance requires the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application and will becomebecame effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (January 1, 2019 for People’s United).
and, as originally issued, required the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application.
People’s United Financial, Inc.
Notes
of Income or Consolidated Statements of Cash Flows, the Company has, where appropriate, modified its business processes, systems and internal controls in order to support the recognition, measurement and disclosure requirements of the new standard. Expanded disclosures about the nature and terms of lease agreements, which are required prospectively, have been included in Note 14.
net unrealized loss on debt securities available-for-sale and debt securities transferred to held-to-maturity; and (iii) the net unrealized loss on derivatives accounted for as cash flow hedges, served to increase regulatory capital by $37.9 million, which resulted in an approximate 11 basis point increase in the risk-based capital ratios of both the Company and the Bank at that time.
People’s United Financial, Inc.
Notes to Consolidated Financial Statements – (Unaudited)
While early adoption is permitted, the Company doeshas not expect to electelected that option. In preparing for adoption,
That rule serves to revise the regulatory capital rules to, among other things, provide banks an option to phase-in, over three years, the day-one regulatory capital effects of the standard.
NOTE 16. SUBSEQUENT EVENT |
Forward-Looking Statements
Forward Looking Statements |
Completed Acquisitions
LEAF Commercial Capital,
Completed Acquisitions |
Suffolk Bancorp
the greater Boston area.
People’s United’s results of operations for the three and ninesix months ended SeptemberJune 30, 20172019 include the results of LEAFBSB Bancorp and SuffolkVAR beginning with the respective effective dates. Merger-related expenses totaling $5.5 million relating to these acquisitions were recorded during the six months ended June 30, 2019. See Note 2 to the Consolidated Financial Statements for a further discussion ofon these acquisitions.
Selected Consolidated
Pending Acquisition |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(dollars in millions, except per common share data) | Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | |||||||||||||||
Earnings Data: | ||||||||||||||||||||
Net interest income (fully taxable equivalent) | $ | 295.8 | $ | 285.2 | $ | 254.2 | $ | 839.1 | $ | 749.3 | ||||||||||
Net interest income | 284.6 | 274.9 | 245.3 | 808.1 | 725.4 | |||||||||||||||
Provision for loan losses | 7.0 | 7.1 | 8.4 | 18.5 | 28.9 | |||||||||||||||
Non-interest income | 89.3 | 91.6 | 90.8 | 265.6 | 258.5 | |||||||||||||||
Non-interest expense (1) | 237.1 | 257.3 | 221.4 | 720.5 | 651.6 | |||||||||||||||
Income before income tax expense | 129.8 | 102.1 | 106.3 | 334.7 | 303.4 | |||||||||||||||
Net income | 90.8 | 69.3 | 73.7 | 230.9 | 205.1 | |||||||||||||||
Net income available to common shareholders (1) | 87.3 | 65.8 | 73.7 | 220.4 | 205.1 | |||||||||||||||
Selected Statistical Data: | ||||||||||||||||||||
Net interest margin (2) | 3.04 | % | 2.96 | % | 2.80 | % | 2.94 | % | 2.80 | % | ||||||||||
Return on average assets (1),(2) | 0.84 | 0.65 | 0.73 | 0.73 | 0.69 | |||||||||||||||
Return on average common equity (2) | 6.4 | 4.8 | 6.1 | 5.6 | 5.7 | |||||||||||||||
Return on average tangible common equity (1),(2) | 11.8 | 8.7 | 10.7 | 10.0 | 10.1 | |||||||||||||||
Efficiency ratio (1) | 57.3 | 58.4 | 59.9 | 58.3 | 61.0 | |||||||||||||||
Common Share Data: | ||||||||||||||||||||
Basic and diluted earnings per common share (1) | $ | 0.26 | $ | 0.19 | $ | 0.24 | $ | 0.67 | $ | 0.68 | ||||||||||
Dividends paid per common share | 0.1725 | 0.1725 | 0.17 | 0.5150 | 0.5075 | |||||||||||||||
Common dividend payout ratio (1) | 66.8 | % | 88.6 | % | 70.1 | % | 76.8 | % | 75.1 | % | ||||||||||
Book value per common share (end of period) | $ | 16.29 | $ | 16.18 | $ | 15.99 | $ | 16.29 | $ | 15.99 | ||||||||||
Tangible book value per common share (end of period) (1) | 8.68 | 8.99 | 9.18 | 8.68 | 9.18 | |||||||||||||||
Stock price: | ||||||||||||||||||||
High | 18.26 | 18.21 | 16.40 | 19.85 | 16.68 | |||||||||||||||
Low | 15.97 | 16.44 | 14.22 | 15.97 | 13.62 | |||||||||||||||
Close (end of period) | 18.14 | 17.66 | 15.82 | 18.14 | 15.82 |
Sale of Branches |
Selected Consolidated Financial Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions, except per common share data) | June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (fully taxable equivalent) | $ | 355.4 | $ | 340.0 | $ | 307.8 | $ | 695.4 | $ | 609.9 | ||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | 348.1 | 332.8 | 301.2 | 680.9 | 597.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 7.6 | 5.6 | 6.5 | 13.2 | 11.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest income (1) | 106.3 | 94.6 | 94.9 | 200.9 | 185.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest expense (1) | 278.4 | 277.2 | 248.6 | 555.6 | 492.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income tax expense | 168.4 | 144.6 | 141.0 | 313.0 | 278.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 133.2 | 114.6 | 110.2 | 247.8 | 218.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders (1) | 129.7 | 111.1 | 106.7 | 240.8 | 211.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Statistical Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (2) | 3.12 | % | 3.20 | % | 3.10 | % | 3.15 | % | 3.07 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Return on average assets (1),(2) | 1.04 | 0.96 | 1.00 | 1.00 | 0.99 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average common equity (2) | 7.7 | 7.0 | 7.6 | 7.4 | 7.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average tangible common equity (1),(2) | 14.1 | 13.0 | 13.9 | 13.5 | 13.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Efficiency ratio (1) | 55.8 | 57.3 | 58.4 | 56.6 | 58.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common Share Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.33 | $ | 0.30 | $ | 0.31 | $ | 0.63 | $ | 0.62 | ||||||||||||||||||||||||||||||||||||||||||||||
Diluted (1) | 0.33 | 0.30 | 0.31 | 0.63 | 0.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid per common share | 0.1775 | 0.1750 | 0.1750 | 0.3525 | 0.3475 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividend payout ratio (1) | 53.8 | % | 58.6 | % | 56.2 | % | 56.0 | % | 56.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Book value per common share (end of period) | $ | 17.34 | $ | 17.13 | $ | 16.56 | $ | 17.34 | $ | 16.56 | ||||||||||||||||||||||||||||||||||||||||||||||
Tangible book value per common share (end of period) (1) | 9.51 | 9.35 | 9.02 | 9.51 | 9.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock price: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High | 17.66 | 18.03 | 19.37 | 18.03 | 20.26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Low | 15.24 | 14.25 | 18.00 | 14.25 | 18.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Close (end of period) | 16.78 | 16.44 | 18.09 | 16.78 | 18.09 |
As of and for the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | June 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Financial Condition Data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 51,623 | $ | 48,092 | $ | 47,877 | $ | 44,133 | $ | 44,575 | |||||||||||||||||||||||||||||||||||||||||||
Loans | 38,557 | 35,515 | 35,241 | 32,199 | 32,512 | ||||||||||||||||||||||||||||||||||||||||||||||||
Securities | 7,086 | 7,176 | 7,233 | 7,385 | 7,324 | ||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | 275 | 106 | 266 | 128 | 253 | ||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | 244 | 241 | 240 | 238 | 237 | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and other acquisition-related intangible assets | 3,073 | 2,897 | 2,866 | 2,569 | 2,574 | ||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | 39,467 | 36,901 | 36,159 | 33,210 | 32,468 | ||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | 3,400 | 2,860 | 3,593 | 3,392 | 4,639 | ||||||||||||||||||||||||||||||||||||||||||||||||
Notes and debentures | 912 | 902 | 896 | 886 | 889 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 7,046 | 6,621 | 6,534 | 5,959 | 5,900 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total risk-weighted assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People’s United | 39,026 | 36,466 | 35,910 | 33,181 | 33,369 | ||||||||||||||||||||||||||||||||||||||||||||||||
People’s United Bank, National Association | 38,976 | 36,447 | 35,875 | 33,132 | 33,317 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-performing assets (1) | 179 | 167 | 186 | 173 | 187 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loan charge-offs | 4.5 | 5.1 | 7.5 | 7.0 | 5.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Average Balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | $ | 38,229 | $ | 35,046 | $ | 35,016 | $ | 32,166 | $ | 32,116 | |||||||||||||||||||||||||||||||||||||||||||
Securities (2) | 7,147 | 7,311 | 7,479 | 7,404 | 7,302 | ||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | 214 | 203 | 292 | 193 | 267 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total earning assets | 45,591 | 42,560 | 42,786 | 39,763 | 39,685 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 51,088 | 47,800 | 47,721 | 44,245 | 44,110 | ||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | 39,211 | 36,450 | 35,959 | 33,058 | 32,535 | ||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | 3,146 | 2,937 | 3,456 | 3,539 | 4,031 | ||||||||||||||||||||||||||||||||||||||||||||||||
Notes and debentures | 904 | 896 | 886 | 888 | 890 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total funding liabilities | 43,261 | 40,284 | 40,302 | 37,485 | 37,456 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 6,978 | 6,562 | 6,515 | 5,937 | 5,870 | ||||||||||||||||||||||||||||||||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loan charge-offs to average total loans (annualized) | 0.05 | % | 0.06 | % | 0.09 | % | 0.09 | % | 0.06 | % | |||||||||||||||||||||||||||||||||||||||||||
Non-performing assets to originated loans, real estate owned and repossessed assets (1) | 0.56 | 0.54 | 0.61 | 0.57 | 0.62 | ||||||||||||||||||||||||||||||||||||||||||||||||
Originated allowance for loan losses to: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Originated loans (1) | 0.76 | 0.76 | 0.77 | 0.78 | 0.77 | ||||||||||||||||||||||||||||||||||||||||||||||||
Originated non-performing loans (1) | 146.0 | 157.0 | 140.9 | 147.9 | 138.4 | ||||||||||||||||||||||||||||||||||||||||||||||||
Average stockholders’ equity to average total assets | 13.7 | 13.7 | 13.7 | 13.4 | 13.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity to total assets | 13.6 | 13.8 | 13.6 | 13.5 | 13.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tangible common equity to tangible assets (3) | 7.7 | 7.7 | 7.6 | 7.6 | 7.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total risk-based capital: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People’s United | 12.0 | 12.4 | 12.5 | 12.8 | 12.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
People’s United Bank, National Association | 12.4 | 12.9 | 13.2 | 13.6 | 13.4 |
Non-GAAP Financial Measures and Reconciliation to |
(dollars in millions) Financial Condition Data: Total assets Loans Securities Short-term investments Allowance for loan losses Goodwill and other acquisition-related intangible assets Deposits Borrowings Notes and debentures Stockholders’ equity Total risk-weighted assets: People’s United People’s United Bank, National Association Non-performing assets (1) Net loan charge-offs Average Balances: Loans Securities (2) Short-term investments Total earning assets Total assets Deposits Borrowings Notes and debentures Total funding liabilities Stockholders’ equity Ratios: Net loan charge-offs to average total loans (annualized) Non-performing assets to originated loans, real estate owned and repossessed assets (1) Originated allowance for loan losses to: Originated loans (1) Originatednon-performing loans (1) Average stockholders’ equity to average total assets Stockholders’ equity to total assets Tangible common equity to tangible assets (3) Total risk-based capital: People’s United People’s United Bank, National Association As of and for the Three Months Ended Sept. 30,
2017 June 30,
2017 March 31,
2017 Dec. 31,
2016 Sept. 30,
2016 $ 43,998 $ 43,023 $ 40,230 $ 40,610 $ 40,692 32,384 31,611 29,687 29,745 29,368 6,914 6,880 6,424 6,738 7,046 303 216 392 182 373 233 232 231 229 226 2,568 2,426 2,136 2,142 2,070 32,547 31,815 30,506 29,861 29,656 4,144 4,084 3,183 4,057 4,437 906 907 904 1,030 1,054 5,746 5,704 5,195 5,142 4,862 33,029 32,095 30,229 30,540 30,451 32,981 32,050 30,202 30,489 30,415 191 198 183 167 180 5.2 6.8 2.4 4.7 2.5 $ 31,994 $ 31,400 $ 29,355 $ 29,346 $ 29,107 6,559 6,728 6,831 7,074 6,873 347 355 371 308 361 38,900 38,483 36,557 36,728 36,341 43,256 42,666 40,317 40,623 40,304 32,065 32,024 29,923 29,773 29,437 4,010 3,498 3,709 4,148 4,296 909 907 966 1,045 1,056 36,984 36,429 34,598 34,966 34,789 5,722 5,696 5,166 5,039 4,841 0.06 % 0.09 % 0.03 % 0.06 % 0.04 % 0.64 0.67 0.63 0.57 0.63 0.77 0.77 0.77 0.77 0.76 131.6 128.1 140.9 150.6 142.0 13.2 13.4 12.8 12.4 12.0 13.1 13.3 12.9 12.7 11.9 7.1 7.5 7.4 7.2 7.2 12.0 12.6 12.7 12.5 11.5 12.6 13.3 13.4 13.3 12.8
Non-GAAP Financial Measures and Reconciliation to GAAP
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(dollars in millions) | Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | |||||||||||||||
Totalnon-interest expense | $ | 237.1 | $ | 257.3 | $ | 221.4 | $ | 720.5 | $ | 651.6 | ||||||||||
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| |||||||||||
Adjustments to arrive at operatingnon-interest expense: | ||||||||||||||||||||
Merger-related expenses | (3.0 | ) | (24.8 | ) | (3.1 | ) | (29.0 | ) | (3.1 | ) | ||||||||||
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Total | (3.0 | ) | (24.8 | ) | (3.1 | ) | (29.0 | ) | (3.1 | ) | ||||||||||
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Operatingnon-interest expense | 234.1 | 232.5 | 218.3 | 691.5 | 648.5 | |||||||||||||||
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Operating lease expense | (8.8 | ) | (8.7 | ) | (9.7 | ) | (26.3 | ) | (28.0 | ) | ||||||||||
Amortization of other acquisition-related intangible assets | (7.9 | ) | (7.9 | ) | (5.8 | ) | (22.1 | ) | (17.4 | ) | ||||||||||
Other (1) | (1.5 | ) | (0.4 | ) | (1.8 | ) | (3.7 | ) | (5.1 | ) | ||||||||||
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Totalnon-interest expense for efficiency ratio | $ | 215.9 | $ | 215.5 | $ | 201.0 | $ | 639.4 | $ | 598.0 | ||||||||||
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Net interest income (FTE basis) | $ | 295.8 | $ | 285.2 | $ | 254.2 | $ | 839.1 | $ | 749.3 | ||||||||||
Totalnon-interest income | 89.3 | 91.6 | 90.8 | 265.6 | 258.5 | |||||||||||||||
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Total revenues | 385.1 | 376.8 | 345.0 | 1,104.7 | 1,007.8 | |||||||||||||||
Adjustments: | ||||||||||||||||||||
Net security (gains) losses | — | (0.1 | ) | — | 15.6 | (0.1 | ) | |||||||||||||
Operating lease expense | (8.8 | ) | (8.7 | ) | (9.7 | ) | (26.3 | ) | (28.0 | ) | ||||||||||
BOLI FTE adjustment | 1.2 | 1.0 | 0.6 | 2.6 | 2.1 | |||||||||||||||
Other (2) | (0.2 | ) | — | (0.3 | ) | — | (1.0 | ) | ||||||||||||
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Total revenues for efficiency ratio | $ | 377.3 | $ | 369.0 | $ | 335.6 | $ | 1,096.6 | $ | 980.8 | ||||||||||
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Efficiency ratio | 57.3 | % | 58.4 | % | 59.9 | % | 58.3 | % | 61.0 | % | ||||||||||
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Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||
Total non-interest expense | $ | 278.4 | $ | 277.2 | $ | 248.6 | $ | 555.6 | $ | 492.1 | |||||||||||||||||||||||||||||||||||||
Adjustments to arrive at operating non-interest expense: | |||||||||||||||||||||||||||||||||||||||||||||||
Merger-related expenses | (6.5) | (15.0) | (2.9) | (21.5) | (2.9) | ||||||||||||||||||||||||||||||||||||||||||
Total | (6.5) | (15.0) | (2.9) | (21.5) | (2.9) | ||||||||||||||||||||||||||||||||||||||||||
Operating non-interest expense | 271.9 | 262.2 | 245.7 | 534.1 | 489.2 | ||||||||||||||||||||||||||||||||||||||||||
Operating lease expense | (9.9) | (9.4) | (8.7) | (19.3) | (17.7) | ||||||||||||||||||||||||||||||||||||||||||
Amortization of other acquisition-related intangible assets | (8.0) | (6.7) | (4.9) | (14.7) | (10.0) | ||||||||||||||||||||||||||||||||||||||||||
Other (1) | (1.4) | (1.8) | (1.7) | (3.2) | (3.0) | ||||||||||||||||||||||||||||||||||||||||||
Total non-interest expense for efficiency ratio | $ | 252.6 | $ | 244.3 | $ | 230.4 | $ | 496.9 | $ | 458.5 | |||||||||||||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 355.4 | $ | 340.0 | $ | 307.8 | $ | 695.4 | $ | 609.9 | |||||||||||||||||||||||||||||||||||||
Total non-interest income | 106.3 | 94.6 | 94.9 | 200.9 | 185.3 | ||||||||||||||||||||||||||||||||||||||||||
Total revenues | 461.7 | 434.6 | 402.7 | 896.3 | 795.2 | ||||||||||||||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Operating lease expense | (9.9) | (9.4) | (8.7) | (19.3) | (17.7) | ||||||||||||||||||||||||||||||||||||||||||
BOLI FTE adjustment | 0.7 | 0.6 | 0.4 | 1.3 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||
Net security gains | (0.1) | — | — | (0.1) | (0.1) | ||||||||||||||||||||||||||||||||||||||||||
Other (2) | — | 0.3 | — | 0.3 | — | ||||||||||||||||||||||||||||||||||||||||||
Total revenues for efficiency ratio | $ | 452.4 | $ | 426.1 | $ | 394.4 | $ | 878.5 | $ | 778.2 | |||||||||||||||||||||||||||||||||||||
Efficiency ratio | 55.8 | % | 57.3 | % | 58.4 | % | 56.6 | % | 58.9 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(dollars in millions, except per common share data) | Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | |||||||||||||||
Net income available to common shareholders | $ | 87.3 | $ | 65.8 | $ | 73.7 | $ | 220.4 | $ | 205.1 | ||||||||||
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Adjustments to arrive at operating earnings: | ||||||||||||||||||||
Merger-related expenses | 3.0 | 24.8 | 3.1 | 29.0 | 3.1 | |||||||||||||||
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Totalpre-tax adjustments | 3.0 | 24.8 | 3.1 | 29.0 | 3.1 | |||||||||||||||
Tax effect | (1.0 | ) | (8.0 | ) | (1.0 | ) | (9.2 | ) | (1.0 | ) | ||||||||||
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Total adjustments, net of tax | 2.0 | 16.8 | 2.1 | 19.8 | 2.1 | |||||||||||||||
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Operating earnings | $ | 89.3 | $ | 82.6 | $ | 75.8 | $ | 240.2 | $ | 207.2 | ||||||||||
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EPS, as reported | $ | 0.26 | $ | 0.19 | $ | 0.24 | $ | 0.67 | $ | 0.68 | ||||||||||
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Adjustments to arrive at operating EPS: | ||||||||||||||||||||
Merger-related expenses | — | 0.05 | 0.01 | 0.06 | 0.01 | |||||||||||||||
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Total adjustments per common share | — | 0.05 | 0.01 | 0.06 | 0.01 | |||||||||||||||
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Operating EPS | $ | 0.26 | $ | 0.24 | $ | 0.25 | $ | 0.73 | $ | 0.69 | ||||||||||
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Average total assets | $ | 43,256 | $ | 42,666 | $ | 40,304 | $ | 42,091 | $ | 39,503 | ||||||||||
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Operating return on average assets (annualized) | 0.83 | % | 0.77 | % | 0.75 | % | 0.76 | % | 0.70 | % | ||||||||||
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Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions, except per common share data) | June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 129.7 | $ | 111.1 | $ | 106.7 | $ | 240.8 | $ | 211.1 | |||||||||||||||||||||||||||||||||||||
Adjustments to arrive at operating earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Merger-related expenses | 6.5 | 15.0 | 2.9 | 21.5 | 2.9 | ||||||||||||||||||||||||||||||||||||||||||
Total pre-tax adjustments | 6.5 | 15.0 | 2.9 | 21.5 | 2.9 | ||||||||||||||||||||||||||||||||||||||||||
Tax effect | (1.4) | (3.1) | (0.6) | (4.5) | (0.6) | ||||||||||||||||||||||||||||||||||||||||||
Total adjustments, net of tax | 5.1 | 11.9 | 2.3 | 17.0 | 2.3 | ||||||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 134.8 | $ | 123.0 | $ | 109.0 | $ | 257.8 | $ | 213.4 | |||||||||||||||||||||||||||||||||||||
Diluted EPS, as reported | $ | 0.33 | $ | 0.30 | $ | 0.31 | $ | 0.63 | $ | 0.61 | |||||||||||||||||||||||||||||||||||||
Adjustments to arrive at operating EPS: | |||||||||||||||||||||||||||||||||||||||||||||||
Merger-related expenses | 0.01 | 0.03 | 0.01 | 0.04 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
Total adjustments per common share | 0.01 | 0.03 | 0.01 | 0.04 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
Operating EPS | $ | 0.34 | $ | 0.33 | $ | 0.32 | $ | 0.67 | $ | 0.62 | |||||||||||||||||||||||||||||||||||||
Average total assets | $ | 51,088 | $ | 47,800 | $ | 44,110 | $ | 49,453 | $ | 44,061 | |||||||||||||||||||||||||||||||||||||
Operating return on average assets (annualized) | 1.06 | % | 1.03 | % | 0.99 | % | 1.04 | % | 0.97 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(dollars in millions) | Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | |||||||||||||||
Operating earnings | $ | 89.3 | $ | 82.6 | $ | 75.8 | $ | 240.2 | $ | 207.2 | ||||||||||
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Average stockholders’ equity | $ | 5,722 | $ | 5,696 | $ | 4,841 | $ | 5,530 | $ | 4,799 | ||||||||||
Less: Average preferred stock | 244 | 244 | — | 244 | — | |||||||||||||||
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Average common equity | 5,478 | 5,452 | 4,841 | 5,286 | 4,799 | |||||||||||||||
Less: Average goodwill and average other | 2,524 | 2,415 | 2,073 | 2,359 | 2,079 | |||||||||||||||
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Average tangible common equity | $ | 2,954 | $ | 3,037 | $ | 2,768 | $ | 2,927 | $ | 2,720 | ||||||||||
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Operating return on average tangible common equity | 12.1 | % | 10.9 | % | 11.0 | % | 10.9 | % | 10.2 | % | ||||||||||
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Three Months Ended | Nine Months Ended | |||||||||||||||||||
(dollars in millions) | Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | |||||||||||||||
Common dividends paid | $ | 58.3 | $ | 58.3 | $ | 51.7 | $ | 169.3 | $ | 154.1 | ||||||||||
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Operating earnings | $ | 89.3 | $ | 82.6 | $ | 75.8 | $ | 240.2 | $ | 207.2 | ||||||||||
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Operating common dividend payout ratio | 65.3 | % | 70.6 | % | 68.2 | % | 70.5 | % | 74.4 | % | ||||||||||
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Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 134.8 | $ | 123.0 | $ | 109.0 | $ | 257.8 | $ | 213.4 | ||||||||||||||||||||||||||||||||||||||||||||||
Average stockholders’ equity | $ | 6,978 | $ | 6,562 | $ | 5,870 | $ | 6,771 | $ | 5,845 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Average preferred stock | 244 | 244 | 244 | 244 | 244 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average common equity | $ | 6,734 | $ | 6,318 | $ | 5,626 | $ | 6,527 | $ | 5,601 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Average goodwill and average other acquisition-related intangible assets | 3,043 | 2,900 | 2,554 | 2,972 | 2,556 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average tangible common equity | $ | 3,691 | $ | 3,418 | $ | 3,072 | $ | 3,555 | $ | 3,045 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating return on average tangible common equity (annualized) | 14.6 | % | 14.4 | % | 14.2 | % | 14.5 | % | 14.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividends paid | $ | 69.8 | $ | 65.2 | $ | 59.9 | $ | 135.0 | $ | 118.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 134.8 | $ | 123.0 | $ | 109.0 | $ | 257.8 | $ | 213.4 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating common dividend payout ratio | 51.8 | % | 53.0 | % | 55.0 | % | 52.4 | % | 55.6 | % |
(dollars in millions) | Sept. 30, 2017 | June 30, 2017 | March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | |||||||||||||||
Total stockholders’ equity | $ | 5,746 | $ | 5,704 | $ | 5,195 | $ | 5,142 | $ | 4,862 | ||||||||||
Less: Preferred stock | 244 | 244 | 244 | 244 | — | |||||||||||||||
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Common equity | 5,502 | 5,460 | 4,951 | 4,898 | 4,862 | |||||||||||||||
Less: Goodwill and other acquisition-related intangible assets | 2,568 | 2,426 | 2,136 | 2,142 | 2,070 | |||||||||||||||
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Tangible common equity | $ | 2,934 | $ | 3,034 | $ | 2,815 | $ | 2,756 | $ | 2,792 | ||||||||||
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Total assets | $ | 43,998 | $ | 43,023 | $ | 40,230 | $ | 40,610 | $ | 40,692 | ||||||||||
Less: Goodwill and other acquisition-related intangible assets | 2,568 | 2,426 | 2,136 | 2,142 | 2,070 | |||||||||||||||
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Tangible assets | $ | 41,430 | $ | 40,597 | $ | 38,094 | $ | 38,468 | $ | 38,622 | ||||||||||
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Tangible common equity ratio | 7.1 | % | 7.5 | % | 7.4 | % | 7.2 | % | 7.2 | % | ||||||||||
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(in millions, except per common share data) | Sept. 30, 2017 | June 30, 2017 | March 31, 2016 | Dec. 31, 2016 | Sept. 30, 2016 | |||||||||||||||
Tangible common equity | $ | 2,934 | $ | 3,034 | $ | 2,815 | $ | 2,756 | $ | 2,792 | ||||||||||
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Common shares issued | 433.59 | 433.34 | 406.43 | 405.00 | 400.13 | |||||||||||||||
Less: Common shares classified as treasury shares | 89.04 | 89.04 | 89.04 | 89.06 | 89.05 | |||||||||||||||
Unallocated ESOP common shares | 6.71 | 6.79 | 6.88 | 6.97 | 7.06 | |||||||||||||||
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Common shares | 337.84 | 337.51 | 310.51 | 308.97 | 304.02 | |||||||||||||||
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Tangible book value per common share | $ | 8.68 | $ | 8.99 | $ | 9.07 | $ | 8.92 | $ | 9.18 | ||||||||||
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(dollars in millions) | June 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total stockholders’ equity | $ | 7,046 | $ | 6,621 | $ | 6,534 | $ | 5,959 | $ | 5,900 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Preferred stock | 244 | 244 | 244 | 244 | 244 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common equity | 6,802 | 6,377 | 6,290 | 5,715 | 5,656 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Goodwill and other acquisition-related intangible assets | 3,073 | 2,896 | 2,866 | 2,569 | 2,574 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tangible common equity | $ | 3,729 | $ | 3,481 | $ | 3,424 | $ | 3,146 | $ | 3,082 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 51,623 | $ | 48,092 | $ | 47,877 | $ | 44,133 | $ | 44,575 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Goodwill and other acquisition-related intangible assets | 3,073 | 2,896 | 2,866 | 2,569 | 2,574 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tangible assets | $ | 48,550 | $ | 45,196 | $ | 45,011 | $ | 41,564 | $ | 42,001 | ||||||||||||||||||||||||||||||||||||||||||||||
Tangible common equity ratio | 7.7 | % | 7.7 | % | 7.6 | % | 7.6 | % | 7.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except per common share data) | June 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tangible common equity | $ | 3,729 | $ | 3,481 | $ | 3,424 | $ | 3,146 | $ | 3,082 | ||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 487.35 | 467.38 | 466.32 | 437.74 | 437.06 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Common shares classified as treasury shares | 89.01 | 89.01 | 89.03 | 89.02 | 89.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated ESOP common shares | 6.10 | 6.19 | 6.27 | 6.36 | 6.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares | 392.24 | 372.18 | 371.02 | 342.36 | 341.59 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tangible book value per common share | $ | 9.51 | $ | 9.35 | $ | 9.23 | $ | 9.19 | $ | 9.02 |
Financial Overview |
data for prior periods has not been restated to include these acquisitions and therefore, are not directly comparable to subsequent periods.
Net income for the nine months ended September 30, 2017 totaled $230.9 million, or $0.67 per diluted common share, compared to $205.1 million, or $0.68 per diluted common share, for theyear-ago period. Included in the results for the nine months ended September 30, 2017 and 2016 were merger-related expenses totaling $29.0 million ($19.8 millionafter-tax) or $0.06 per common share, and $3.1 million ($2.1 millionafter-tax) or $0.01 per common share, respectively. People’s United’s return on average assets was 0.73% for the nine months ended September 30, 2017 compared to 0.69% for theyear-ago period. Return on average tangible stockholders’ equity was 10.0% for the nine months ended September 30, 2017 compared to 10.1% for theyear-ago period. On an operating basis, return on average assets was 0.76%1.06% and return on average tangible common equity was 10.9%14.6% for the ninethree months ended SeptemberJune 30, 2017.2019. Compared to the second quarter of 2018, FTE net interest income increased $47.6 million to $355.4 million and the net interest margin increased two basis points to 3.12% (see Net Interest Income).
borrowings.
Segment Results
Segment Results |
When performed, the goodwill impairment analysis is atwo-step test.
Segment Performance Summary
Three months ended September 30, 2017 (in millions) | Commercial Banking | Retail Banking | Total Reportable Segments | Treasury | Other | Total Consolidated | ||||||||||||||||||
Net interest income (loss) | $ | 164.5 | $ | 105.0 | $ | 269.5 | $ | 26.4 | $ | (11.3 | ) | $ | 284.6 | |||||||||||
Provision for loan losses | 11.5 | 3.4 | 14.9 | — | (7.9 | ) | 7.0 | |||||||||||||||||
Totalnon-interest income | 40.1 | 46.9 | 87.0 | 3.1 | (0.8 | ) | 89.3 | |||||||||||||||||
Totalnon-interest expense | 90.8 | 136.1 | 226.9 | 4.4 | 5.8 | 237.1 | ||||||||||||||||||
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Income (loss) before income tax expense (benefit) | 102.3 | 12.4 | 114.7 | 25.1 | (10.0 | ) | 129.8 | |||||||||||||||||
Income tax expense (benefit) | 30.7 | 3.8 | 34.5 | 7.5 | (3.0 | ) | 39.0 | |||||||||||||||||
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Net income (loss) | $ | 71.6 | $ | 8.6 | $ | 80.2 | $ | 17.6 | $ | (7.0 | ) | $ | 90.8 | |||||||||||
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Average total assets | $ | 25,307.8 | $ | 9,776.6 | $ | 35,084.4 | $ | 7,293.4 | $ | 878.6 | $ | 43,256.4 | ||||||||||||
Average total liabilities | 8,121.0 | 20,539.7 | 28,660.7 | 8,485.3 | 388.2 | 37,534.2 | ||||||||||||||||||
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Nine months ended September 30, 2017 (in millions) | Commercial Banking | Retail Banking | Total Reportable Segments | Treasury | Other | Total Consolidated | ||||||||||||||||||
Net interest income (loss) | $ | 459.0 | $ | 298.7 | $ | 757.7 | $ | 80.5 | $ | (30.1 | ) | $ | 808.1 | |||||||||||
Provision for loan losses | 31.6 | 10.0 | 41.6 | — | (23.1 | ) | 18.5 | |||||||||||||||||
Totalnon-interest income | 121.4 | 136.5 | 257.9 | 8.2 | (0.5 | ) | 265.6 | |||||||||||||||||
Totalnon-interest expense | 262.7 | 405.8 | 668.5 | 11.2 | 40.8 | 720.5 | ||||||||||||||||||
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Income (loss) before income tax expense (benefit) | 286.1 | 19.4 | 305.5 | 77.5 | (48.3 | ) | 334.7 | |||||||||||||||||
Income tax expense (benefit) | 88.9 | 6.1 | 95.0 | 24.1 | (15.3 | ) | 103.8 | |||||||||||||||||
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Net income (loss) | $ | 197.2 | $ | 13.3 | $ | 210.5 | $ | 53.4 | $ | (33.0 | ) | $ | 230.9 | |||||||||||
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Average total assets | $ | 24,183.0 | $ | 9,661.3 | $ | 33,844.3 | $ | 7,427.7 | $ | 818.6 | $ | 42,090.6 | ||||||||||||
Average total liabilities | 7,578.0 | 20,184.4 | 27,762.4 | 8,411.4 | 386.7 | 36,560.5 | ||||||||||||||||||
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Segment Performance Summary |
Three months ended June 30, 2019 | Commercial Banking | Retail Banking | Total Reportable Segments | Treasury | Other | Total Consolidated | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||
Net interest income (loss) | $ | 189.6 | $ | 138.9 | $ | 328.5 | $ | 20.8 | $ | (1.2) | $ | 348.1 | ||||||||||||||||||||||||||
Provision for loan losses | 10.8 | 2.4 | 13.2 | — | (5.6) | 7.6 | ||||||||||||||||||||||||||||||||
Total non-interest income | 52.1 | 49.1 | 101.2 | 4.0 | 1.1 | 106.3 | ||||||||||||||||||||||||||||||||
Total non-interest expense | 111.1 | 149.2 | 260.3 | 4.4 | 13.7 | 278.4 | ||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | 119.8 | 36.4 | 156.2 | 20.4 | (8.2) | 168.4 | ||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 25.0 | 7.6 | 32.6 | 4.2 | (1.6) | 35.2 | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 94.8 | $ | 28.8 | $ | 123.6 | $ | 16.2 | $ | (6.6) | $ | 133.2 | ||||||||||||||||||||||||||
Average total assets | $ | 29,046.0 | $ | 12,878.7 | $ | 41,924.7 | $ | 7,786.1 | $ | 1,376.7 | $ | 51,087.5 | ||||||||||||||||||||||||||
Average total liabilities | 10,814.6 | 23,802.0 | 34,616.6 | 8,846.2 | 646.6 | 44,109.4 |
Six months ended June 30, 2019 | Commercial Banking | Retail Banking | Total Reportable Segments | Treasury | Other | Total Consolidated | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||
Net interest income (loss) | $ | 376.8 | $ | 268.5 | $ | 645.3 | $ | 43.7 | $ | (8.1) | $ | 680.9 | ||||||||||||||||||||||||||
Provision for loan losses | 21.3 | 4.4 | 25.7 | — | (12.5) | 13.2 | ||||||||||||||||||||||||||||||||
Total non-interest income | 98.2 | 94.5 | 192.7 | 6.3 | 1.9 | 200.9 | ||||||||||||||||||||||||||||||||
Total non-interest expense | 218.5 | 295.7 | 514.2 | 8.9 | 32.5 | 555.6 | ||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | 235.2 | 62.9 | 298.1 | 41.1 | (26.2) | 313.0 | ||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 49.0 | 13.1 | 62.1 | 8.5 | (5.4) | 65.2 | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 186.2 | $ | 49.8 | $ | 236.0 | $ | 32.6 | $ | (20.8) | $ | 247.8 | ||||||||||||||||||||||||||
Average total assets | $ | 28,258.6 | $ | 11,991.7 | $ | 40,250.3 | $ | 7,834.0 | $ | 1,368.6 | $ | 49,452.9 | ||||||||||||||||||||||||||
Average total liabilities | 10,557.3 | 22,942.4 | 33,499.7 | 8,512.7 | 669.1 | 42,681.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net interest income | $ | 164.5 | $ | 143.6 | $ | 459.0 | $ | 423.2 | ||||||||
Provision for loan losses | 11.5 | 10.0 | 31.6 | 29.3 | ||||||||||||
Totalnon-interest income | 40.1 | 42.5 | 121.4 | 120.3 | ||||||||||||
Totalnon-interest expense | 90.8 | 84.1 | 262.7 | 244.3 | ||||||||||||
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Income before income tax expense | 102.3 | 92.0 | 286.1 | 269.9 | ||||||||||||
Income tax expense | 30.7 | 28.2 | 88.9 | 87.5 | ||||||||||||
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Net income | $ | 71.6 | $ | 63.8 | $ | 197.2 | $ | 182.4 | ||||||||
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Average total assets | $ | 25,307.8 | $ | 23,003.3 | $ | 24,183.0 | $ | 22,613.4 | ||||||||
Average total liabilities | 8,121.0 | 6,852.4 | 7,578.0 | 6,575.4 | ||||||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
Net interest income | $ | 189.6 | $ | 171.0 | $ | 376.8 | $ | 339.0 | |||||||||||||||||||||||||||
Provision for loan losses | 10.8 | 9.4 | 21.3 | 18.6 | |||||||||||||||||||||||||||||||
Total non-interest income | 52.1 | 44.2 | 98.2 | 87.4 | |||||||||||||||||||||||||||||||
Total non-interest expense | 111.1 | 92.9 | 218.5 | 188.7 | |||||||||||||||||||||||||||||||
Income before income tax expense | 119.8 | 112.9 | 235.2 | 219.1 | |||||||||||||||||||||||||||||||
Income tax expense | 25.0 | 24.6 | 49.0 | 47.3 | |||||||||||||||||||||||||||||||
Net income | $ | 94.8 | $ | 88.3 | $ | 186.2 | $ | 171.8 | |||||||||||||||||||||||||||
Average total assets | $ | 29,046.0 | $ | 25,532.4 | $ | 28,258.6 | $ | 25,497.4 | |||||||||||||||||||||||||||
Average total liabilities | 10,814.6 | 9,024.2 | 10,557.3 | 9,172.1 |
deposits assumed in connection with acquisitions.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net interest income | $ | 105.0 | $ | 87.0 | $ | 298.7 | $ | 258.8 | ||||||||
Provision for loan losses | 3.4 | 3.3 | 10.0 | 9.7 | ||||||||||||
Totalnon-interest income | 46.9 | 42.8 | 136.5 | 124.2 | ||||||||||||
Totalnon-interest expense | 136.1 | 128.0 | 405.8 | 380.3 | ||||||||||||
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Income (loss) before income tax expense (benefit) | 12.4 | (1.5 | ) | 19.4 | (7.0 | ) | ||||||||||
Income tax expense (benefit) | 3.8 | (0.5 | ) | 6.1 | (2.3 | ) | ||||||||||
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Net income (loss) | $ | 8.6 | $ | (1.0 | ) | $ | 13.3 | $ | (4.7 | ) | ||||||
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Average total assets | $ | 9,776.6 | $ | 9,023.2 | $ | 9,661.3 | $ | 8,847.8 | ||||||||
Average total liabilities | 20,539.7 | 19,194.9 | 20,184.4 | 19,256.7 | ||||||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
Net interest income | $ | 138.9 | $ | 112.2 | $ | 268.5 | $ | 219.0 | |||||||||||||||||||||||||||
Provision for loan losses | 2.4 | 2.2 | 4.4 | 4.4 | |||||||||||||||||||||||||||||||
Total non-interest income | 49.1 | 46.5 | 94.5 | 91.8 | |||||||||||||||||||||||||||||||
Total non-interest expense | 149.2 | 140.0 | 295.7 | 279.3 | |||||||||||||||||||||||||||||||
Income before income tax expense | 36.4 | 16.5 | 62.9 | 27.1 | |||||||||||||||||||||||||||||||
Income tax expense | 7.6 | 3.6 | 13.1 | 5.9 | |||||||||||||||||||||||||||||||
Net income | $ | 28.8 | $ | 12.9 | $ | 49.8 | $ | 21.2 | |||||||||||||||||||||||||||
Average total assets | $ | 12,878.7 | $ | 9,697.1 | $ | 11,991.7 | $ | 9,731.8 | |||||||||||||||||||||||||||
Average total liabilities | 23,802.0 | 20,224.5 | 22,942.4 | 20,175.8 |
deposits assumed in connection with acquisitions.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net interest income | $ | 26.4 | $ | 21.0 | $ | 80.5 | $ | 65.8 | ||||||||
Totalnon-interest income | 3.1 | 6.7 | 8.2 | 12.2 | ||||||||||||
Totalnon-interest expense | 4.4 | 1.9 | 11.2 | 5.9 | ||||||||||||
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Income before income tax expense | 25.1 | 25.8 | 77.5 | 72.1 | ||||||||||||
Income tax expense | 7.5 | 7.9 | 24.1 | 23.3 | ||||||||||||
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Net income | $ | 17.6 | $ | 17.9 | $ | 53.4 | $ | 48.8 | ||||||||
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Average total assets | $ | 7,293.4 | $ | 7,552.0 | $ | 7,427.7 | $ | 7,338.3 | ||||||||
Average total liabilities | 8,485.3 | 9,069.1 | 8,411.4 | 8,525.1 | ||||||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
Net interest income | $ | 20.8 | $ | 23.7 | $ | 43.7 | $ | 49.5 | |||||||||||||||||||||||||||
Total non-interest income | 4.0 | 2.6 | 6.3 | 4.8 | |||||||||||||||||||||||||||||||
Total non-interest expense | 4.4 | 4.6 | 8.9 | 9.4 | |||||||||||||||||||||||||||||||
Income before income tax expense | 20.4 | 21.7 | 41.1 | 44.9 | |||||||||||||||||||||||||||||||
Income tax expense | 4.2 | 4.7 | 8.5 | 9.7 | |||||||||||||||||||||||||||||||
Net income | $ | 16.2 | $ | 17.0 | $ | 32.6 | $ | 35.2 | |||||||||||||||||||||||||||
Average total assets | $ | 7,786.1 | $ | 7,903.8 | $ | 7,834.0 | $ | 7,900.8 | |||||||||||||||||||||||||||
Average total liabilities | 8,846.2 | 8,573.6 | 8,512.7 | 8,472.7 |
borrowings.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net interest loss | $ | (11.3 | ) | $ | (6.3 | ) | $ | (30.1 | ) | $ | (22.4 | ) | ||||
Provision for loan losses | (7.9 | ) | (4.9 | ) | (23.1 | ) | (10.1 | ) | ||||||||
Totalnon-interest income | (0.8 | ) | (1.2 | ) | (0.5 | ) | 1.8 | |||||||||
Totalnon-interest expense | 5.8 | 7.4 | 40.8 | 21.1 | ||||||||||||
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| |||||||||
Loss before income tax benefit | (10.0 | ) | (10.0 | ) | (48.3 | ) | (31.6 | ) | ||||||||
Income tax benefit | (3.0 | ) | (3.0 | ) | (15.3 | ) | (10.2 | ) | ||||||||
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|
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| |||||||||
Net loss | $ | (7.0 | ) | $ | (7.0 | ) | $ | (33.0 | ) | $ | (21.4 | ) | ||||
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| |||||||||
Average total assets | $ | 878.6 | $ | 725.5 | $ | 818.6 | $ | 703.1 | ||||||||
Average total liabilities | 388.2 | 347.1 | 386.7 | 346.4 | ||||||||||||
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Net Interest Income
average total assets and average total liabilities primarily reflect the recognition of a right-of-use ("ROU") asset and a corresponding operating lease liability upon the adoption of the Financial Accounting Standards Board's (the "FASB") leasing standard on January 1, 2019 (see Notes 14 and 15 to the Consolidated Financial Statements for a further discussion regarding the accounting for leases).
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
Net interest loss | $ | (1.2) | $ | (5.7) | $ | (8.1) | $ | (10.5) | |||||||||||||||||||||||||||
Provision for loan losses | (5.6) | (5.1) | (12.5) | (11.1) | |||||||||||||||||||||||||||||||
Total non-interest income | 1.1 | 1.6 | 1.9 | 1.3 | |||||||||||||||||||||||||||||||
Total non-interest expense | 13.7 | 11.1 | 32.5 | 14.7 | |||||||||||||||||||||||||||||||
Loss before income tax benefit | (8.2) | (10.1) | (26.2) | (12.8) | |||||||||||||||||||||||||||||||
Income tax benefit | (1.6) | (2.1) | (5.4) | (2.7) | |||||||||||||||||||||||||||||||
Net loss | $ | (6.6) | $ | (8.0) | $ | (20.8) | $ | (10.1) | |||||||||||||||||||||||||||
Average total assets | $ | 1,376.7 | $ | 976.5 | $ | 1,368.6 | $ | 930.8 | |||||||||||||||||||||||||||
Average total liabilities | 646.6 | 417.9 | 669.1 | 395.0 |
Net Interest Income |
In response to continued signs of a moderately expanding U.S. economy, the
On July 31, 2019, the Federal Reserve Board lowered the target range for the federal funds rate by 25 basis points to between 2.00% and 2.25%.
Thirdoriginations.
2018
The average total commercial and residential mortgage loan portfolios increased $2.1 billion and $796 million, respectively, compared to theyear-ago quarter, reflecting organic growth and loans acquired in the Suffolk and LEAF acquisitions. Average consumer loans decreased $43 million compared to theyear-ago quarter, primarily reflecting a $46 million decrease in average home equityrate loans.
The 1436 basis point increase to 0.59%1.15% in the rate paid on average total funding liabilities in the second quarter of 2019 compared to 2018 primarily reflects the increases in the targetedtarget federal funds rate discussed above. The rate paid on average total deposits increased nine41 basis points, compared to the third quarter of 2016, reflecting increases of 1550 basis points in time deposits and 44 basis points in savings,interest-bearing checking and money market deposits and six basis points in time deposits, partially offset by the benefit from a $1.3 billion$733 million increase innon-interest-bearing non-interest bearing deposits. Average savings, interest-bearing checking and money market deposits and average time deposits comprised 61%57% and 15%21%, respectively, of average total deposits in the thirdsecond quarter of 2017,2019 compared to 62%59% and 16%17%, respectively, in the comparable 20162018 period.
Third
2019
BSB Bancorp acquisition as well as organic growth.
borrowings.
Average Balance Sheet, Interest and Yield/Rate Analysis (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended (dollars in millions) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 214.1 | $ | 1.2 | 2.21 | % | $ | 202.8 | $ | 1.3 | 2.60 | % | $ | 266.7 | $ | 1.3 | 2.02 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities (2) | 7,147.1 | 50.8 | 2.85 | 7,310.6 | 52.4 | 2.87 | 7,302.1 | 49.2 | 2.69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 12,323.2 | 139.9 | 4.54 | 11,588.3 | 132.7 | 4.58 | 10,802.9 | 111.5 | 4.13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 9,638.2 | 114.1 | 4.74 | 8,974.0 | 106.5 | 4.74 | 8,558.3 | 92.6 | 4.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment financing | 4,510.8 | 62.8 | 5.56 | 4,357.7 | 59.0 | 5.42 | 3,923.6 | 50.5 | 5.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 9,672.6 | 85.6 | 3.54 | 8,153.6 | 70.9 | 3.48 | 6,853.6 | 55.5 | 3.24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity and other consumer | 2,084.6 | 25.7 | 4.94 | 1,972.9 | 24.9 | 5.05 | 1,977.6 | 21.4 | 4.33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 38,229.4 | 428.1 | 4.48 | 35,046.5 | 394.0 | 4.50 | 32,116.0 | 331.5 | 4.13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total earning assets | 45,590.6 | $ | 480.1 | 4.21 | % | 42,559.9 | $ | 447.7 | 4.21 | % | 39,684.8 | $ | 382.0 | 3.85 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 5,496.9 | 5,240.3 | 4,425.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 51,087.5 | $ | 47,800.2 | $ | 44,109.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing | $ | 8,605.6 | $ | — | — | % | $ | 8,301.3 | $ | — | — | % | $ | 7,872.7 | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings, interest-bearing checking and money market | 22,341.3 | 57.4 | 1.03 | 21,018.0 | 48.8 | 0.93 | 19,220.6 | 28.2 | 0.59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time | 8,263.8 | 39.2 | 1.90 | 7,130.8 | 32.4 | 1.82 | 5,442.3 | 19.1 | 1.40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | 39,210.7 | 96.6 | 0.99 | 36,450.1 | 81.2 | 0.89 | 32,535.6 | 47.3 | 0.58 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 1,844.0 | 12.2 | 2.64 | 1,890.1 | 12.4 | 2.64 | 3,009.3 | 14.8 | 1.97 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds purchased | 1,057.8 | 6.7 | 2.53 | 751.9 | 4.7 | 2.52 | 634.5 | 3.0 | 1.86 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer repurchase agreements | 240.0 | 0.4 | 0.77 | 286.2 | 0.5 | 0.65 | 228.7 | 0.1 | 0.31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other borrowings | 4.3 | — | 0.64 | 9.0 | 0.1 | 2.43 | 158.5 | 0.6 | 1.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total borrowings | 3,146.1 | 19.3 | 2.46 | 2,937.2 | 17.7 | 2.41 | 4,031.0 | 18.5 | 1.84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes and debentures | 903.8 | 8.8 | 3.89 | 896.3 | 8.8 | 3.93 | 889.6 | 8.4 | 3.79 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total funding liabilities | 43,260.6 | $ | 124.7 | 1.15 | % | 40,283.6 | $ | 107.7 | 1.07 | % | 37,456.2 | $ | 74.2 | 0.79 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 848.8 | 954.3 | 784.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 44,109.4 | 41,237.9 | 38,240.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 6,978.1 | 6,562.3 | 5,869.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 51,087.5 | $ | 47,800.2 | $ | 44,109.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/spread (3) | $ | 355.4 | 3.06 | % | $ | 340.0 | 3.14 | % | $ | 307.8 | 3.06 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.12 | % | 3.20 | % | 3.10 | % |
September 30, 2017 | June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||||||||||||
Three months ended (dollars in millions) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 347.3 | $ | 1.1 | 1.25 | % | $ | 354.8 | $ | 0.9 | 0.97 | % | $ | 361.0 | $ | 0.4 | 0.47 | % | ||||||||||||||||||
Securities (2) | 6,558.8 | 44.4 | 2.71 | 6,727.5 | 44.6 | 2.65 | 6,872.5 | 38.9 | 2.26 | |||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 11,169.8 | 105.6 | 3.78 | 11,371.4 | 105.3 | 3.70 | 9,978.8 | 85.7 | 3.44 | |||||||||||||||||||||||||||
Commercial and industrial | 8,580.0 | 84.0 | 3.91 | 8,276.1 | 77.7 | 3.75 | 8,053.2 | 71.1 | 3.53 | |||||||||||||||||||||||||||
Equipment financing | 3,399.5 | 41.5 | 4.89 | 2,924.8 | 31.5 | 4.31 | 2,984.7 | 32.8 | 4.39 | |||||||||||||||||||||||||||
Residential mortgage | 6,731.7 | 52.8 | 3.13 | 6,693.3 | 52.4 | 3.14 | 5,935.3 | 46.1 | 3.11 | |||||||||||||||||||||||||||
Home equity and other consumer | 2,112.6 | 21.0 | 3.97 | 2,134.8 | 19.9 | 3.73 | 2,155.4 | 18.4 | 3.41 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
Total loans | 31,993.6 | 304.9 | 3.81 | 31,400.4 | 286.8 | 3.65 | 29,107.4 | 254.1 | 3.49 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
Total earning assets | 38,899.7 | $ | 350.4 | 3.60 | % | 38,482.7 | $ | 332.3 | 3.45 | % | 36,340.9 | $ | 293.4 | 3.23 | % | |||||||||||||||||||||
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| |||||||||||||||||||||||||
Other assets | 4,356.7 | 4,183.1 | 3,963.1 | |||||||||||||||||||||||||||||||||
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|
|
|
| |||||||||||||||||||||||||||||||
Total assets | $ | 43,256.4 | $ | 42,665.8 | $ | 40,304.0 | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||
Non-interest-bearing | $ | 7,609.1 | $ | — | — | % | $ | 7,399.5 | $ | — | — | % | $ | 6,325.3 | $ | — | — | % | ||||||||||||||||||
Savings, interest-bearing checking and money market | 19,529.1 | 21.4 | 0.44 | 19,895.8 | 19.6 | 0.39 | 18,356.6 | 13.3 | 0.29 | |||||||||||||||||||||||||||
Time | 4,926.8 | 13.0 | 1.06 | 4,728.7 | 11.3 | 0.96 | 4,755.1 | 11.9 | 1.00 | |||||||||||||||||||||||||||
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|
|
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| |||||||||||||||||||
Total deposits | 32,065.0 | 34.4 | 0.43 | 32,024.0 | 30.9 | 0.39 | 29,437.0 | 25.2 | 0.34 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 2,834.3 | 9.4 | 1.33 | 2,546.6 | 7.1 | 1.11 | 3,306.7 | 5.1 | 0.62 | |||||||||||||||||||||||||||
Federal funds purchased | 649.9 | 2.1 | 1.26 | 625.2 | 1.6 | 1.04 | 674.1 | 0.9 | 0.51 | |||||||||||||||||||||||||||
Customer repurchase agreements | 311.3 | 0.1 | 0.19 | 313.9 | 0.1 | 0.19 | 314.8 | 0.1 | 0.19 | |||||||||||||||||||||||||||
Other borrowings | 214.2 | 1.1 | 2.06 | 11.8 | 0.1 | 0.79 | — | — | — | |||||||||||||||||||||||||||
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| |||||||||||||||||||
Total borrowings | 4,009.7 | 12.7 | 1.27 | 3,497.5 | 8.9 | 1.02 | 4,295.6 | 6.1 | 0.57 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
Notes and debentures | 908.9 | 7.5 | 3.29 | 907.2 | 7.3 | 3.24 | 1,056.4 | 7.9 | 2.97 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
Total funding liabilities | 36,983.6 | $ | 54.6 | 0.59 | % | 36,428.7 | $ | 47.1 | 0.52 | % | 34,789.0 | $ | 39.2 | 0.45 | % | |||||||||||||||||||||
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| |||||||||||||||||||||||||
Other liabilities | 550.6 | 541.0 | 674.5 | |||||||||||||||||||||||||||||||||
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|
|
| |||||||||||||||||||||||||||||||
Total liabilities | 37,534.2 | 36,969.7 | 35,463.5 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 5,722.2 | 5,696.1 | 4,840.5 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 43,256.4 | $ | 42,665.8 | $ | 40,304.0 | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Net interest income/spread (3) | $ | 295.8 | 3.01 | % | $ | 285.2 | 2.93 | % | $ | 254.2 | 2.78 | % | ||||||||||||||||||||||||
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| |||||||||||||||||||||||||
Net interest margin | 3.04 | % | 2.96 | % | 2.80 | % | ||||||||||||||||||||||||||||||
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|
|
Average Balance Sheet, Interest and Yield/Rate Analysis (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended (dollars in millions) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 208.5 | $ | 2.5 | 2.40 | % | $ | 316.3 | $ | 2.5 | 1.63 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities (2) | 7,228.4 | 103.2 | 2.86 | 7,244.4 | 97.2 | 2.68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 11,957.8 | 272.6 | 4.56 | 10,868.2 | 218.5 | 4.02 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 9,307.9 | 220.6 | 4.74 | 8,488.8 | 177.2 | 4.18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment financing | 4,434.7 | 121.8 | 5.49 | 3,897.3 | 99.4 | 5.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 8,917.3 | 156.5 | 3.51 | 6,845.4 | 110.4 | 3.22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity and other consumer | 2,029.0 | 50.6 | 4.99 | 2,006.2 | 42.2 | 4.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 36,646.7 | 822.1 | 4.49 | 32,105.9 | 647.7 | 4.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total earning assets | 44,083.6 | $ | 927.8 | 4.21 | % | 39,666.6 | $ | 747.4 | 3.77 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 5,369.3 | 4,394.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 49,452.9 | $ | 44,060.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing | $ | 8,454.3 | $ | — | — | % | $ | 7,834.9 | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings, interest-bearing checking and money market | 21,683.3 | 106.2 | 0.98 | 19,430.4 | 53.1 | 0.55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time | 7,700.5 | 71.6 | 1.86 | 5,413.6 | 35.5 | 1.31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | 37,838.1 | 177.8 | 0.94 | 32,678.9 | 88.6 | 0.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 1,866.9 | 24.6 | 2.64 | 2,844.1 | 25.7 | 1.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds purchased | 905.7 | 11.4 | 2.52 | 621.5 | 5.3 | 1.70 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer repurchase agreements | 263.0 | 0.9 | 0.71 | 245.5 | 0.3 | 0.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other borrowings | 6.6 | 0.1 | 1.85 | 181.0 | 1.4 | 1.57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total borrowings | 3,042.2 | 37.0 | 2.43 | 3,892.1 | 32.7 | 1.68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes and debentures | 900.1 | 17.6 | 3.91 | 892.5 | 16.2 | 3.63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total funding liabilities | 41,780.4 | $ | 232.4 | 1.11 | % | 37,463.5 | $ | 137.5 | 0.73 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 901.1 | 752.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 42,681.5 | 38,215.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 6,771.4 | 5,845.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 49,452.9 | $ | 44,060.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/spread (3) | $ | 695.4 | 3.10 | % | $ | 609.9 | 3.04 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.15 | % | 3.07 | % |
Volume and |
Average Balance Sheet, Interest and Yield/Rate Analysis (1)
September 30, 2017 | September 30, 2016 | |||||||||||||||||||||||
Nine months ended (dollars in millions) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Short-term investments | $ | 357.4 | $ | 2.7 | 1.01 | % | $ | 335.7 | $ | 1.1 | 0.46 | % | ||||||||||||
Securities (2) | 6,704.9 | 132.2 | 2.63 | 6,690.4 | 116.7 | 2.33 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Commercial real estate | 10,913.9 | 299.5 | 3.66 | 9,991.1 | 257.8 | 3.44 | ||||||||||||||||||
Commercial and industrial | 8,192.8 | 229.6 | 3.74 | 7,754.1 | 200.6 | 3.45 | ||||||||||||||||||
Equipment financing | 3,100.5 | 104.6 | 4.50 | 2,972.7 | 99.1 | 4.44 | ||||||||||||||||||
Residential mortgage | 6,601.2 | 154.8 | 3.13 | 5,719.3 | 134.2 | 3.13 | ||||||||||||||||||
Home equity and other consumer | 2,117.6 | 59.3 | 3.73 | 2,173.1 | 55.4 | 3.40 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans | 30,926.0 | 847.8 | 3.66 | 28,610.3 | 747.1 | 3.48 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total earning assets | 37,988.3 | $ | 982.7 | 3.45 | % | 35,636.4 | $ | 864.9 | 3.24 | % | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Other assets | 4,102.3 | 3,866.2 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 42,090.6 | $ | 39,502.6 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Non-interest-bearing | $ | 7,152.2 | $ | — | — | % | $ | 6,139.3 | $ | — | — | % | ||||||||||||
Savings, interest-bearing checking and money market | 19,446.5 | 57.4 | 0.39 | 18,138.6 | 38.9 | 0.29 | ||||||||||||||||||
Time | 4,746.5 | 35.0 | 0.98 | 4,802.7 | 36.9 | 1.02 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total deposits | 31,345.2 | 92.4 | 0.39 | 29,080.6 | 75.8 | 0.35 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Borrowings: | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 2,698.0 | 22.3 | 1.10 | 3,115.5 | 14.1 | 0.61 | ||||||||||||||||||
Federal funds purchased | 627.6 | 4.9 | 1.03 | 497.2 | 1.8 | 0.48 | ||||||||||||||||||
Customer repurchase agreements | 311.6 | 0.4 | 0.19 | 340.0 | 0.5 | 0.19 | ||||||||||||||||||
Other borrowings | 102.5 | 1.3 | 1.71 | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total borrowings | 3,739.7 | 28.9 | 1.03 | 3,952.7 | 16.4 | 0.55 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Notes and debentures | 927.1 | 22.3 | 3.21 | 1,049.7 | 23.4 | 2.97 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total funding liabilities | 36,012.0 | $ | 143.6 | 0.53 | % | 34,083.0 | $ | 115.6 | 0.45 | % | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Other liabilities | 548.5 | 620.6 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities | 36,560.5 | 34,703.6 | ||||||||||||||||||||||
Stockholders’ equity | 5,530.1 | 4,799.0 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 42,090.6 | $ | 39,502.6 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest income/spread (3) | $ | 839.1 | 2.92 | % | $ | 749.3 | 2.79 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Net interest margin | 2.94 | % | 2.80 | % | ||||||||||||||||||||
|
|
|
|
Volume and Rate Analysis
Three Months Ended September 30, 2017 Compared To | ||||||||||||||||||||||||
September 30, 2016 | June 30, 2017 | |||||||||||||||||||||||
Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||||||
(in millions) | Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||||||
Short-term investments | $ | — | $ | 0.7 | $ | 0.7 | $ | — | $ | 0.2 | $ | 0.2 | ||||||||||||
Securities | (1.8 | ) | 7.3 | 5.5 | (1.1 | ) | 0.9 | (0.2 | ) | |||||||||||||||
Loans: | ||||||||||||||||||||||||
Commercial real estate | 10.8 | 9.1 | 19.9 | (1.9 | ) | 2.2 | 0.3 | |||||||||||||||||
Commercial and industrial | 4.9 | 8.0 | 12.9 | 2.9 | 3.4 | 6.3 | ||||||||||||||||||
Equipment financing | 4.8 | 3.9 | 8.7 | 5.5 | 4.5 | 10.0 | ||||||||||||||||||
Residential mortgage | 6.2 | 0.5 | 6.7 | 0.3 | 0.1 | 0.4 | ||||||||||||||||||
Home equity and other consumer | (0.4 | ) | 3.0 | 2.6 | (0.2 | ) | 1.3 | 1.1 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans | 26.3 | 24.5 | 50.8 | 6.6 | 11.5 | 18.1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total change in interest and dividend income | 24.5 | 32.5 | 57.0 | 5.5 | 12.6 | 18.1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Interest expense: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings, interest-bearing checking and money market | 0.9 | 7.2 | 8.1 | (0.4 | ) | 2.2 | 1.8 | |||||||||||||||||
Time | 0.4 | 0.7 | 1.1 | 0.5 | 1.2 | 1.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total deposits | 1.3 | 7.9 | 9.2 | 0.1 | 3.4 | 3.5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Borrowings: | ||||||||||||||||||||||||
Federal Home Loan Bank advances | (0.8 | ) | 5.1 | 4.3 | 0.9 | 1.4 | 2.3 | |||||||||||||||||
Federal funds purchased | — | 1.2 | 1.2 | 0.1 | 0.4 | 0.5 | ||||||||||||||||||
Customer repurchase agreements | — | — | — | — | — | — | ||||||||||||||||||
Other borrowings | 1.1 | — | 1.1 | 1.0 | — | 1.0 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||
Total borrowings | 0.3 | 6.3 | 6.6 | 2.0 | 1.8 | 3.8 | ||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Notes and debentures | (1.2 | ) | 0.8 | (0.4 | ) | — | 0.2 | 0.2 | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total change in interest expense | 0.4 | 15.0 | 15.4 | 2.1 | 5.4 | 7.5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net interest income | $ | 24.1 | $ | 17.5 | $ | 41.6 | $ | 3.4 | $ | 7.2 | $ | 10.6 | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
Volume and Rate Analysis
Nine Months Ended September 30, 2017 Compared To September 30, 2016 | ||||||||||||
Increase (Decrease) | ||||||||||||
(in millions) | Volume | Rate | Total | |||||||||
Interest and dividend income: | ||||||||||||
Short-term investments | $ | 0.1 | $ | 1.5 | $ | 1.6 | ||||||
Securities | 0.3 | 15.2 | 15.5 | |||||||||
Loans: | ||||||||||||
Commercial real estate | 24.7 | 17.0 | 41.7 | |||||||||
Commercial and industrial | 11.7 | 17.3 | 29.0 | |||||||||
Equipment financing | 4.3 | 1.2 | 5.5 | |||||||||
Residential mortgage | 20.7 | (0.1 | ) | 20.6 | ||||||||
Home equity and other consumer | (1.4 | ) | 5.3 | 3.9 | ||||||||
|
|
|
|
|
| |||||||
Total loans | 60.0 | 40.7 | 100.7 | |||||||||
|
|
|
|
|
| |||||||
Total change in interest and dividend income | 60.4 | 57.4 | 117.8 | |||||||||
|
|
|
|
|
| |||||||
Interest expense: | ||||||||||||
Deposits: | ||||||||||||
Savings, interest-bearing checking and money market | 3.0 | 15.5 | 18.5 | |||||||||
Time | (0.4 | ) | (1.5 | ) | (1.9 | ) | ||||||
|
|
|
|
|
| |||||||
Total deposits | 2.6 | 14.0 | 16.6 | |||||||||
|
|
|
|
|
| |||||||
Borrowings: | ||||||||||||
Federal Home Loan Bank advances | (2.1 | ) | 10.3 | 8.2 | ||||||||
Federal funds purchased | 0.6 | 2.5 | 3.1 | |||||||||
Customer repurchase agreements | — | (0.1 | ) | (0.1 | ) | |||||||
Other borrowings | 1.3 | — | 1.3 | |||||||||
|
|
|
|
|
| |||||||
Total borrowings | (0.2 | ) | 12.7 | 12.5 | ||||||||
|
|
|
|
|
| |||||||
Notes and debentures | (2.9 | ) | 1.8 | (1.1 | ) | |||||||
|
|
|
|
|
| |||||||
Total change in interest expense | (0.5 | ) | 28.5 | 28.0 | ||||||||
|
|
|
|
|
| |||||||
Change in net interest income | $ | 60.9 | $ | 28.9 | $ | 89.8 | ||||||
|
|
|
|
|
|
Non-Interest Income
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||
(in millions) | 2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
Bank service charges | $ | 25.3 | $ | 25.0 | $ | 25.3 | $ | 73.8 | $ | 73.8 | ||||||||||
Investment management fees | 16.9 | 16.3 | 11.6 | 49.2 | 34.1 | |||||||||||||||
Operating lease income | 10.9 | 11.0 | 11.2 | 32.1 | 31.7 | |||||||||||||||
Commercial banking lending fees | 7.0 | 11.5 | 7.1 | 26.7 | 24.4 | |||||||||||||||
Insurance revenue | 9.7 | 7.5 | 9.8 | 26.3 | 26.1 | |||||||||||||||
Cash management fees | 6.8 | 6.5 | 6.5 | 19.6 | 18.8 | |||||||||||||||
Brokerage commissions | 2.8 | 3.4 | 3.2 | 9.2 | 9.4 | |||||||||||||||
Net gains on sales of residential mortgage loans | 1.1 | 0.7 | 1.9 | 2.7 | 3.7 | |||||||||||||||
Net security gains (losses) | — | 0.1 | — | (15.6 | ) | 0.1 | ||||||||||||||
Othernon-interest income: | ||||||||||||||||||||
Customer interest rate swap income, net | 1.9 | 2.4 | 3.7 | 7.1 | 10.6 | |||||||||||||||
BOLI | 2.1 | 1.9 | 1.2 | 4.8 | 4.2 | |||||||||||||||
Other | 4.8 | 5.3 | 9.3 | 29.7 | 21.6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total othernon-interest income | 8.8 | 9.6 | 14.2 | 41.6 | 36.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Totalnon-interest income | $ | 89.3 | $ | 91.6 | $ | 90.8 | $ | 265.6 | $ | 258.5 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019 Compared To | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 Increase (Decrease) | March 31, 2019 Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | (0.3) | $ | 0.2 | $ | (0.1) | $ | 0.1 | $ | (0.2) | $ | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | (1.1) | 2.7 | 1.6 | (1.2) | (0.4) | (1.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 16.6 | 11.8 | 28.4 | 8.3 | (1.1) | 7.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 12.3 | 9.2 | 21.5 | 7.9 | (0.3) | 7.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment financing | 7.9 | 4.4 | 12.3 | 2.1 | 1.7 | 3.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 24.6 | 5.5 | 30.1 | 13.4 | 1.3 | 14.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity and other consumer | 1.2 | 3.1 | 4.3 | 1.4 | (0.6) | 0.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 62.6 | 34.0 | 96.6 | 33.1 | 1.0 | 34.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total change in interest and dividend income | 61.2 | 36.9 | 98.1 | 32.0 | 0.4 | 32.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings, interest-bearing checking and money market | 5.2 | 24.0 | 29.2 | 3.2 | 5.4 | 8.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time | 12.0 | 8.1 | 20.1 | 5.3 | 1.5 | 6.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | 17.2 | 32.1 | 49.3 | 8.5 | 6.9 | 15.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | (6.8) | 4.2 | (2.6) | (0.3) | 0.1 | (0.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds purchased | 2.4 | 1.3 | 3.7 | 1.9 | 0.1 | 2.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer repurchase agreements | — | 0.3 | 0.3 | (0.1) | — | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other borrowings | (0.4) | (0.2) | (0.6) | — | (0.1) | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total borrowings | (4.8) | 5.6 | 0.8 | 1.5 | 0.1 | 1.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes and debentures | 0.1 | 0.3 | 0.4 | 0.1 | (0.1) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total change in interest expense | 12.5 | 38.0 | 50.5 | 10.1 | 6.9 | 17.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in net interest income | $ | 48.7 | $ | (1.1) | $ | 47.6 | $ | 21.9 | $ | (6.5) | $ | 15.4 |
Six Months Ended June 30, 2019 Compared To June 30, 2018 Increase (Decrease) | |||||||||||||||||||||||||||||||||||
(in millions) | Volume | Rate | Total | ||||||||||||||||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||||||||||||||||||
Short-term investments | $ | (1.1) | $ | 1.1 | $ | — | |||||||||||||||||||||||||||||
Securities | (0.2) | 6.2 | 6.0 | ||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||
Commercial real estate | 23.1 | 31.0 | 54.1 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 18.0 | 25.4 | 43.4 | ||||||||||||||||||||||||||||||||
Equipment financing | 14.4 | 8.0 | 22.4 | ||||||||||||||||||||||||||||||||
Residential mortgage | 35.7 | 10.4 | 46.1 | ||||||||||||||||||||||||||||||||
Home equity and other consumer | 0.5 | 7.9 | 8.4 | ||||||||||||||||||||||||||||||||
Total loans | 91.7 | 82.7 | 174.4 | ||||||||||||||||||||||||||||||||
Total change in interest and dividend income | 90.4 | 90.0 | 180.4 | ||||||||||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Savings, interest-bearing checking and money market | 6.8 | 46.3 | 53.1 | ||||||||||||||||||||||||||||||||
Time | 18.1 | 18.0 | 36.1 | ||||||||||||||||||||||||||||||||
Total deposits | 24.9 | 64.3 | 89.2 | ||||||||||||||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | (10.6) | 9.5 | (1.1) | ||||||||||||||||||||||||||||||||
Federal funds purchased | 3.0 | 3.1 | 6.1 | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | — | 0.6 | 0.6 | ||||||||||||||||||||||||||||||||
Other borrowings | (1.6) | 0.3 | (1.3) | ||||||||||||||||||||||||||||||||
Total borrowings | (9.2) | 13.5 | 4.3 | ||||||||||||||||||||||||||||||||
Notes and debentures | 0.1 | 1.3 | 1.4 | ||||||||||||||||||||||||||||||||
Total change in interest expense | 15.8 | 79.1 | 94.9 | ||||||||||||||||||||||||||||||||
Change in net interest income | $ | 74.6 | $ | 10.9 | $ | 85.5 |
Non-Interest Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Bank service charges | $ | 26.4 | $ | 25.2 | $ | 24.3 | $ | 51.6 | $ | 48.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Investment management fees | 17.1 | 16.5 | 17.2 | 33.6 | 34.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease income | 12.7 | 12.7 | 11.2 | 25.4 | 21.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance revenue | 8.7 | 10.5 | 8.3 | 19.2 | 18.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial banking lending fees | 10.2 | 7.8 | 9.4 | 18.0 | 19.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash management fees | 7.2 | 6.8 | 7.0 | 14.0 | 13.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage commissions | 2.6 | 2.8 | 3.2 | 5.4 | 6.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-interest income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer interest rate swap income, net | 7.5 | 3.0 | 4.0 | 10.5 | 5.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
BOLI | 3.1 | 2.7 | 1.4 | 5.8 | 3.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains on sales of residential mortgage loans | 0.3 | 0.2 | 0.2 | 0.5 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net security gains | 0.1 | — | — | 0.1 | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 10.4 | 6.4 | 8.7 | 16.8 | 13.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total other non-interest income | 21.4 | 12.3 | 14.3 | 33.7 | 22.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total non-interest income | $ | 106.3 | $ | 94.6 | $ | 94.9 | $ | 200.9 | $ | 185.3 |
bank service charges in the second quarter of 2019 compared to both the year-ago period and the first quarter of 2019 primarily reflects higher interchange-related fees and benefits from recent acquisitions. The improvementincrease in investment management fees compared to the thirdfirst quarter of 20162018 primarily reflects the acquisition of Gerstein Fisheran improvement in November 2016. At September 30, 2017, assets under administration, which are not reported as assets of People’s United, totaled $23.0 billion, of which $8.9 billion are under discretionary management, compared to $21.3 billion and $8.0 billion, respectively, at December 31, 2016.
The increasemarket conditions in insurance revenue from the second quarter of 20172019. At June 30, 2019, assets under discretionary management totaled $9.3 billion compared to $8.6 billion at December 31, 2018.
sold. Loans held-for-sale at June 30, 2019 consisted of newly-originated residential mortgage loans with a carrying amount of $17.4 million.
Non-Interest Expense
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||
(dollars in millions) | 2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
Compensation and benefits | $ | 128.0 | $ | 130.0 | $ | 116.1 | $ | 383.6 | $ | 341.6 | ||||||||||
Occupancy and equipment | 40.2 | 39.8 | 37.7 | 118.6 | 112.6 | |||||||||||||||
Professional and outside service fees | 19.2 | 28.1 | 17.7 | 62.8 | 51.5 | |||||||||||||||
Regulatory assessments | 10.3 | 9.9 | 9.9 | 29.8 | 27.1 | |||||||||||||||
Operating lease expense | 8.8 | 8.7 | 9.7 | 26.3 | 28.0 | |||||||||||||||
Amortization of other acquisition-related intangibles | 7.9 | 7.9 | 5.8 | 22.1 | 17.4 | |||||||||||||||
Othernon-interest expense: | ||||||||||||||||||||
Stationery, printing, postage and telephone | 5.0 | 6.1 | 4.6 | 16.7 | 14.0 | |||||||||||||||
Advertising and promotion | 3.1 | 3.1 | 3.0 | 8.7 | 8.1 | |||||||||||||||
Other | 14.6 | 23.7 | 16.9 | 51.9 | 51.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total othernon-interest expense | 22.7 | 32.9 | 24.5 | 77.3 | 73.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Totalnon-interest expense | $ | 237.1 | $ | 257.3 | $ | 221.4 | $ | 720.5 | $ | 651.6 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Efficiency ratio | 57.3 | % | 58.4 | % | 59.9 | % | 58.3 | % | 61.0 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
$0.9 million and $1.0 million, respectively. Included in other non-interest income are unrealized gains relating to the change in fair value of equity securities of $0.8 million, $0.2 million and $0.9 million, for the second quarter of 2019, first quarter of 2019 and the second quarter of 2018, respectively (see Note 3 to the Consolidated Financial Statements).
Non-Interest Expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | $ | 161.3 | $ | 155.4 | $ | 135.0 | $ | 316.7 | $ | 275.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Occupancy and equipment | 44.4 | 44.3 | 40.8 | 88.7 | 82.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Professional and outside services | 24.9 | 20.0 | 20.6 | 44.9 | 39.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease expense | 9.9 | 9.4 | 8.7 | 19.3 | 17.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of other acquisition-related intangible assets | 8.0 | 6.7 | 4.9 | 14.7 | 10.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory assessments | 6.5 | 7.0 | 9.9 | 13.5 | 20.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-interest expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stationary, printing, postage and telephone | 6.0 | 6.5 | 6.2 | 12.9 | 12.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising and promotion | 4.2 | 3.3 | 4.2 | 7.5 | 6.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 12.7 | 24.6 | 18.3 | 37.4 | 28.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total other non-interest expense | 22.9 | 34.4 | 28.7 | 57.8 | 47.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total non-interest expense | $ | 277.9 | $ | 277.2 | $ | 248.6 | $ | 555.6 | $ | 492.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Efficiency ratio | 55.8 | % | 57.3 | % | 58.4 | % | 56.6 | % | 58.9 | % |
As Excluding such expenses, total non-interest expense increased $25.7 million compared to both the second quarter of 20172018 and third$9.2 million compared to the first quarter of 2016,2019. Excluding such expense, the increase in total non-interest expense in the second quarter of 2019 compared to the year-ago period primarily reflects the incremental costs resulting from recent acquisitions, partially offset by decreases in regulatory assessments and other non-interest expense (see below). The increase compared to the first quarter of 2019 primarily reflects an increase in compensation and benefit costs attributable to the acquisition of BSB Bancorp partially offset by a decrease in other non-interest expense.
the incremental costs resulting from recent acquisitions. Professional and outside services fees include merger-related expenses totaling $2.7 million in the third quarter of 2017, $10.8$4.6 million in the second quarter of 2017 and $3.12019, $1.2 million in the thirdfirst quarter of 2016.2019 and $2.1 million in the second quarter of 2018. Excluding such expenses, the $0.8 million decreaseincrease in professional and outside services fees compared toin the second quarter of 2017 and $1.9 million increase2019 compared to both the thirdfirst quarter of 2016 are2019 and the second quarter of 2018 is primarily related to the timing of certain projects in 2017 and the latter half of 2016.
projects.
second quarter of 2019 compared to both the first quarter of 2019 and the year-ago period reflects the effect of additional intangible assets resulting from recent acquisitions. Scheduled amortization expense attributable to other acquisition-related intangible assets for the full-year of 20172019 and each of the next five years is as follows: $30.0 million in 2017; $19.9 million in 2018; $18.4$30.6 million in 2019; $16.8$29.7 million in 2020; $15.0$27.0 million in 2021; and $13.5$24.6 million in 2022.
Included2022; $18.7 million in othernon-interest2023; and $17.0 million in 2024.
In March 2017,charge relating to the Financial Accounting Standards Board amended its standards to (i) require that the service cost componentclosure of net benefit cost15 branches associated with pension and postretirement plans be reportedthe First Connecticut acquisition. Included in other non-interest expense in the same line item in whichyear-ago period is a $4.1 million charge relating to the related employees’ compensation cost is reported and (ii) specify that only the service cost component is eligible for capitalization. The other componentsclosure of net benefit cost, which may not be capitalized, are to be presented separately. This new guidance, which is to be applied retrospectively, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United) and early adoption is permitted. The adoptionten branches as well as $0.8 million of this amendment will result in a reclassification of certain net benefit cost components from compensation and benefits expense to othernon-interest expense.
Income Taxes
merger-related expenses.
Income Taxes |
General
General |
available-for-sale.
2018.
FASB's leasing standard on January 1, 2019.
Loans
Loans |
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Property Type: | ||||||||
Residential (multi-family) | $ | 3,984.8 | $ | 3,790.1 | ||||
Retail | 2,874.4 | 2,530.1 | ||||||
Office buildings | 2,187.7 | 2,173.7 | ||||||
Industrial/manufacturing | 635.7 | 604.9 | ||||||
Hospitality/entertainment | 607.9 | 548.9 | ||||||
Health care | 382.7 | 124.5 | ||||||
Mixed/special use | 245.6 | 220.3 | ||||||
Self storage | 174.0 | 170.3 | ||||||
Land | 52.9 | 41.8 | ||||||
Other | 34.8 | 42.7 | ||||||
|
|
|
| |||||
Total commercial real estate | $ | 11,180.5 | $ | 10,247.3 | ||||
|
|
|
|
(in millions) | June 30, 2019 | December 31, 2018 | |||||||||
Property Type: | |||||||||||
Residential (multifamily) | $ | 4,095.5 | $ | 4,026.2 | |||||||
Retail | 3,394.2 | 3,231.3 | |||||||||
Office buildings | 2,093.0 | 2,132.9 | |||||||||
Hospitality/entertainment | 755.8 | 710.5 | |||||||||
Industrial/manufacturing | 670.9 | 558.0 | |||||||||
Health care | 449.1 | 395.2 | |||||||||
Mixed/special use | 283.7 | 242.8 | |||||||||
Self storage | 203.2 | 190.6 | |||||||||
Land | 65.2 | 35.4 | |||||||||
Other | 220.1 | 126.7 | |||||||||
Total commercial real estate | $ | 12,230.7 | $ | 11,649.6 |
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Industry: | ||||||||
Service | $ | 1,512.7 | $ | 1,392.8 | ||||
Finance and insurance | 1,450.7 | 1,520.8 | ||||||
Manufacturing | 1,355.4 | 1,111.4 | ||||||
Wholesale distribution | 1,086.8 | 1,084.2 | ||||||
Real estate, rental and leasing | 811.3 | 584.7 | ||||||
Retail sales | 783.8 | 741.9 | ||||||
Health services | 731.5 | 899.4 | ||||||
Transportation/utility | 301.2 | 252.5 | ||||||
Construction | 242.0 | 194.1 | ||||||
Arts/entertainment/recreation | 139.6 | 131.4 | ||||||
Information/media | 103.1 | 95.5 | ||||||
Public administration | 58.3 | 56.6 | ||||||
Mining, oil and gas | 8.4 | 9.0 | ||||||
Other | 39.9 | 50.8 | ||||||
|
|
|
| |||||
Total commercial and industrial | $ | 8,624.7 | $ | 8,125.1 | ||||
|
|
|
|
(in millions) | June 30, 2019 | December 31, 2018 | |||||||||
Industry: | |||||||||||
Finance and insurance | $ | 2,035.0 | $ | 1,366.7 | |||||||
Service | 1,753.3 | 1,734.8 | |||||||||
Manufacturing | 1,321.9 | 1,275.6 | |||||||||
Wholesale trade | 1,309.8 | 1,240.1 | |||||||||
Real estate, rental and leasing | 1,026.1 | 926.7 | |||||||||
Health services | 919.3 | 846.8 | |||||||||
Retail trade | 694.1 | 702.9 | |||||||||
Transportation and utilities | 389.3 | 344.2 | |||||||||
Construction | 275.3 | 252.5 | |||||||||
Arts, entertainment and recreation | 147.1 | 145.9 | |||||||||
Information and media | 141.1 | 114.5 | |||||||||
Public administration | 45.1 | 59.2 | |||||||||
Other | 64.4 | 79.0 | |||||||||
Total commercial and industrial | $ | 10,121.8 | $ | 9,088.9 |
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Industry: | ||||||||
Transportation/utility | $ | 1,102.8 | $ | 1,088.3 | ||||
Construction | 481.2 | 410.0 | ||||||
Rental and leasing | 425.5 | 422.3 | ||||||
Service | 313.7 | 79.0 | ||||||
Manufacturing | 221.7 | 139.7 | ||||||
Printing | 204.0 | 197.8 | ||||||
Waste | 181.8 | 186.0 | ||||||
Wholesale distribution | 176.5 | 145.8 | ||||||
Health services | 149.8 | 57.2 | ||||||
Packaging | 109.2 | 135.2 | ||||||
Mining, oil and gas | 52.8 | 51.8 | ||||||
Other (1) | 286.6 | 119.4 | ||||||
|
|
|
| |||||
Total equipment financing | $ | 3,705.6 | $ | 3,032.5 | ||||
|
|
|
|
(in millions) | June 30, 2019 | December 31, 2018 | |||||||||
Industry: | |||||||||||
Transportation and utilities | $ | 1,188.0 | $ | 1,181.3 | |||||||
Service | 631.5 | 542.2 | |||||||||
Construction | 626.0 | 558.1 | |||||||||
Rental and leasing | 555.9 | 543.0 | |||||||||
Manufacturing | 264.9 | 234.2 | |||||||||
Wholesale trade | 236.4 | 202.8 | |||||||||
Health services | 197.2 | 184.3 | |||||||||
Printing | 195.6 | 197.9 | |||||||||
Waste management | 194.2 | 192.6 | |||||||||
Packaging | 112.1 | 118.6 | |||||||||
Retail trade | 104.4 | 99.2 | |||||||||
Agriculture | 60.4 | 60.6 | |||||||||
Mining, oil and gas | 47.9 | 47.2 | |||||||||
Other | 196.5 | 177.2 | |||||||||
Total equipment financing | $ | 4,611.0 | $ | 4,339.2 |
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Adjustable-rate | $ | 5,948.4 | $ | 5,549.1 | ||||
Fixed-rate | 832.6 | 667.6 | ||||||
|
|
|
| |||||
Total residential mortgage | $ | 6,781.0 | $ | 6,216.7 | ||||
|
|
|
|
(in millions) | June 30, 2019 | December 31, 2018 | |||||||||
Adjustable-rate | $ | 7,179.5 | $ | 6,662.0 | |||||||
Fixed-rate | 2,353.1 | 1,492.2 | |||||||||
Total residential mortgage | $ | 9,532.6 | $ | 8,154.2 |
(in millions) | September 30, 2017 | December 31, 2016 | ||||||
Home equity lines of credit | $ | 1,824.2 | $ | 1,883.3 | ||||
Home equity loans | 217.3 | 189.3 | ||||||
Other | 51.2 | 50.7 | ||||||
|
|
|
| |||||
Total home equity and other consumer | $ | 2,092.7 | $ | 2,123.3 | ||||
|
|
|
|
Asset Quality
Recent Trends
(in millions) | June 30, 2019 | December 31, 2018 | |||||||||
Home equity lines of credit | $ | 1,784.6 | $ | 1,729.9 | |||||||
Home equity loans | 224.9 | 232.5 | |||||||||
Other | 51.1 | 47.1 | |||||||||
Total home equity and other consumer | $ | 2,060.6 | $ | 2,009.5 |
Asset Quality |
2019.
December 31, (in millions) | Credit Lines | |||
2017 | $ | 56.3 | ||
2018 | 243.2 | |||
2019 | 115.1 | |||
2020 | 185.2 | |||
2021 | 308.0 | |||
2022 | 479.2 | |||
Later years | 2,189.3 | |||
|
| |||
Total | $ | 3,576.3 | ||
|
|
December 31, (in millions) | Credit Lines | ||||
2019 | $ | 39.3 | |||
2020 | 145.1 | ||||
2021 | 300.1 | ||||
2022 | 458.7 | ||||
2023 | 471.7 | ||||
2024 | 521.8 | ||||
Later years | 2,052.8 | ||||
Total | $ | 3,989.5 |
Portfolio | Delinquencies | |||||||||||
(dollars in millions) | Balance | Amount | Percent | |||||||||
HELOC status: | ||||||||||||
Still in draw period | $ | 1,584.7 | $ | 7.5 | 0.48 | % | ||||||
Amortizing payment | 239.5 | 12.3 | 5.26 | |||||||||
|
|
|
|
|
|
Portfolio Balance | Delinquencies | ||||||||||||||||||||||
(dollars in millions) | Amount | Percent | |||||||||||||||||||||
HELOC status: | |||||||||||||||||||||||
Still in draw period | $ | 1,536.2 | $ | 8.8 | 0.58 | % | |||||||||||||||||
Amortizing payment | 248.4 | 13.8 | 5.57 |
2019.
Recent
2019.
2019.
2019.
2019.
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(dollars in millions) | Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | |||||||||||||||
Allowance for loan losses on originated loans: | ||||||||||||||||||||
Balance at beginning of period | $ | 227.9 | $ | 225.0 | $ | 213.0 | $ | 223.0 | $ | 202.9 | ||||||||||
Charge-offs | (5.8 | ) | (6.7 | ) | (3.8 | ) | (17.1 | ) | (17.3 | ) | ||||||||||
Recoveries | 1.5 | 1.8 | 1.4 | 5.5 | 4.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net loan charge-offs | (4.3 | ) | (4.9 | ) | (2.4 | ) | (11.6 | ) | (13.2 | ) | ||||||||||
Provision for loan losses | 5.6 | 7.8 | 8.4 | 17.8 | 29.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at end of period | $ | 229.2 | $ | 227.9 | $ | 219.0 | $ | 229.2 | $ | 219.0 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Allowance for loan losses on acquired loans: | ||||||||||||||||||||
Balance at beginning of period | $ | 3.7 | $ | 6.3 | $ | 7.4 | $ | 6.3 | $ | 8.1 | ||||||||||
Charge-offs | (1.0 | ) | (1.9 | ) | (0.1 | ) | (2.9 | ) | (0.4 | ) | ||||||||||
Recoveries | 0.1 | — | — | 0.1 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net loan charge-offs | (0.9 | ) | (1.9 | ) | (0.1 | ) | (2.8 | ) | (0.4 | ) | ||||||||||
Provision for loan losses | 1.4 | (0.7 | ) | — | 0.7 | (0.4 | ) | |||||||||||||
|
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|
|
|
|
|
|
| |||||||||||
Balance at end of period | $ | 4.2 | $ | 3.7 | $ | 7.3 | $ | 4.2 | $ | 7.3 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Originated commercial allowance for loan losses as a percentage of originated commercial loans | 0.94 | % | 0.94 | % | 0.94 | % | 0.94 | % | 0.94 | % | ||||||||||
Originated retail allowance for loan losses as a percentage of originated retail loans | 0.35 | 0.35 | 0.30 | 0.35 | 0.30 | |||||||||||||||
Total originated allowance for loan losses as a percentage of: | ||||||||||||||||||||
Originated loans | 0.77 | 0.77 | 0.76 | 0.77 | 0.76 | |||||||||||||||
Originatednon-performing loans | 131.6 | 128.1 | 142.0 | 131.6 | 142.0 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses on originated loans: | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 236.9 | $ | 236.3 | $ | 231.3 | $ | 236.3 | $ | 230.8 | |||||||||||||||||||||||||||||||||||||
Charge-offs | (4.4) | (5.6) | (4.7) | (10.0) | (9.1) | ||||||||||||||||||||||||||||||||||||||||||
Recoveries | 2.2 | 2.2 | 1.9 | 4.4 | 3.3 | ||||||||||||||||||||||||||||||||||||||||||
Net loan charge-offs | (2.2) | (3.4) | (2.8) | — | (5.8) | ||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 5.4 | 4.0 | 4.3 | 9.4 | 7.8 | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 240.1 | $ | 236.9 | $ | 232.8 | $ | 236.9 | $ | 232.8 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses on acquired loans: | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 4.0 | $ | 4.1 | $ | 4.0 | $ | 4.1 | $ | 3.6 | |||||||||||||||||||||||||||||||||||||
Charge-offs | (2.9) | (1.9) | (2.5) | (4.8) | (4.3) | ||||||||||||||||||||||||||||||||||||||||||
Recoveries | 0.6 | 0.2 | 0.3 | 0.8 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||
Net loan charge-offs | (2.3) | (1.7) | (2.2) | — | (3.7) | ||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 2.2 | 1.6 | 2.2 | 3.8 | 4.1 | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | 3.9 | 4.0 | 4.0 | 4.0 | 4.0 | ||||||||||||||||||||||||||||||||||||||||||
Total Allowance for Loan losses | $ | 244.0 | $ | 240.9 | $ | 236.8 | $ | 240.9 | $ | 236.8 | |||||||||||||||||||||||||||||||||||||
Originated commercial allowance for loan losses as a percentage of originated commercial loans | 0.91 | % | 0.91 | % | 0.93 | % | 0.94 | % | 0.93 | % | |||||||||||||||||||||||||||||||||||||
Originated retail allowance for loan losses as a percentage of originated retail loans | 0.34 | 0.37 | 0.36 | 0.36 | 0.36 | ||||||||||||||||||||||||||||||||||||||||||
Total originated allowance for loan losses as a percentage of: | |||||||||||||||||||||||||||||||||||||||||||||||
Originated loans | 0.76 | 0.76 | 0.77 | 0.78 | 0.77 | ||||||||||||||||||||||||||||||||||||||||||
Originated non-performing loans | 146.0 | 157.0 | 138.4 | 147.9 | 138.4 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in millions) | Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | |||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial real estate | $ | 1.5 | $ | 1.2 | $ | 0.2 | $ | 2.7 | $ | 0.8 | ||||||||||
Commercial and industrial | 2.0 | 1.8 | 0.4 | 4.6 | 3.7 | |||||||||||||||
Equipment financing | 0.5 | 2.7 | 1.3 | 3.7 | 5.0 | |||||||||||||||
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Total | 4.0 | 5.7 | 1.9 | 11.0 | 9.5 | |||||||||||||||
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| |||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 0.1 | 0.1 | 0.4 | 0.3 | 1.1 | |||||||||||||||
Home equity | 0.9 | 0.7 | 0.1 | 2.7 | 2.7 | |||||||||||||||
Other consumer | 0.2 | 0.3 | 0.1 | 0.4 | 0.3 | |||||||||||||||
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Total | 1.2 | 1.1 | 0.6 | 3.4 | 4.1 | |||||||||||||||
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Total net loan charge-offs | $ | 5.2 | $ | 6.8 | $ | 2.5 | $ | 14.4 | $ | 13.6 | ||||||||||
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(Recoveries)
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 0.1 | $ | 1.1 | $ | 0.7 | $ | 1.2 | $ | 1.2 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 0.2 | 1.7 | 1.7 | 1.9 | 3.4 | ||||||||||||||||||||||||||||||||||||||||||
Equipment financing | 3.9 | 2.2 | 2.6 | 6.1 | 4.2 | ||||||||||||||||||||||||||||||||||||||||||
Total | 4.2 | 5.0 | 5.0 | 9.2 | 8.8 | ||||||||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 0.1 | 0.1 | (0.1) | 0.2 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||
Home equity | — | (0.2) | — | (0.2) | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
Other consumer | 0.2 | 0.2 | 0.1 | 0.4 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||
Total | 0.3 | 0.1 | — | 0.4 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||
Total net loan charge-offs | $ | 4.5 | $ | 5.1 | $ | 5.0 | $ | 9.6 | $ | 9.5 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | ||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial real estate | 0.05 | % | 0.04 | % | 0.01 | % | 0.03 | % | 0.01 | % | ||||||||||
Commercial and industrial | 0.09 | 0.09 | 0.02 | 0.07 | 0.06 | |||||||||||||||
Equipment financing | 0.06 | 0.37 | 0.17 | 0.16 | 0.22 | |||||||||||||||
Retail: | ||||||||||||||||||||
Residential mortgage | 0.01 | 0.01 | 0.03 | 0.01 | 0.03 | |||||||||||||||
Home equity | 0.18 | 0.13 | 0.02 | 0.17 | 0.17 | |||||||||||||||
Other consumer | 1.43 | 1.66 | 1.23 | 0.95 | 1.03 | |||||||||||||||
Total portfolio | 0.06 | % | 0.09 | % | 0.04 | % | 0.06 | % | 0.06 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | — | % | 0.04 | % | 0.03 | % | 0.02 | % | 0.02 | % | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 0.01 | 0.08 | 0.08 | 0.04 | 0.08 | ||||||||||||||||||||||||||||||||||||||||||
Equipment financing | 0.35 | 0.20 | 0.26 | 0.28 | 0.22 | ||||||||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | — | — | (0.01) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Home equity | — | (0.04) | — | (0.02) | 0.04 | ||||||||||||||||||||||||||||||||||||||||||
Other consumer | 1.46 | 1.90 | 1.13 | 1.67 | 0.99 | ||||||||||||||||||||||||||||||||||||||||||
Total portfolio | 0.05 | % | 0.06 | % | 0.06 | % | 0.05 | % | 0.06 | % |
2018.
(dollars in millions) | Sept. 30, 2017 | June 30, 2017 | March 31, 2016 | Dec. 31, 2016 | Sept. 30, 2016 | |||||||||||||||
Originatednon-performing loans: | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial real estate | $ | 36.7 | $ | 42.9 | $ | 23.4 | $ | 22.3 | $ | 23.4 | ||||||||||
Commercial and industrial | 34.9 | 40.2 | 47.4 | 41.5 | 40.0 | |||||||||||||||
Equipment financing | 54.1 | 48.2 | 47.4 | 39.4 | 46.0 | |||||||||||||||
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|
| |||||||||||
Total | 125.7 | 131.3 | 118.2 | 103.2 | 109.4 | |||||||||||||||
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Retail: | ||||||||||||||||||||
Residential mortgage | 33.8 | 30.8 | 26.3 | 27.4 | 28.2 | |||||||||||||||
Home equity | 14.8 | 15.8 | 15.2 | 17.4 | 16.5 | |||||||||||||||
Other consumer | — | — | — | — | — | |||||||||||||||
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| |||||||||||
Total | 48.6 | 46.6 | 41.5 | 44.8 | 44.7 | |||||||||||||||
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| |||||||||||
Total originatednon-performing loans (1) | 174.3 | 177.9 | 159.7 | 148.0 | 154.1 | |||||||||||||||
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REO: | ||||||||||||||||||||
Residential | 4.7 | 6.7 | 10.9 | 8.1 | 7.9 | |||||||||||||||
Commercial | 6.3 | 4.3 | 4.1 | 4.0 | 11.2 | |||||||||||||||
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| |||||||||||
Total REO | 11.0 | 11.0 | 15.0 | 12.1 | 19.1 | |||||||||||||||
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Repossessed assets | 5.4 | 9.2 | 8.2 | 7.2 | 6.9 | |||||||||||||||
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| |||||||||||
Totalnon-performing assets | $ | 190.7 | $ | 198.1 | $ | 182.9 | $ | 167.3 | $ | 180.1 | ||||||||||
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| |||||||||||
Originatednon-performing loans as a percentage of originated loans | 0.59 | % | 0.60 | % | 0.55 | % | 0.51 | % | 0.54 | % | ||||||||||
Non-performing assets as a percentage of: | ||||||||||||||||||||
Originated loans, REO and repossessed assets | 0.64 | 0.67 | 0.63 | 0.57 | 0.63 | |||||||||||||||
Tangible stockholders’ equity and originated allowance for loan losses | 5.60 | 5.65 | 5.57 | 5.19 | 5.98 |
(dollars in millions) | June 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | ||||||||||||||||||||||||
Originated non-performing loans: | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 23.2 | $ | 33.6 | $ | 33.5 | $ | 17.2 | $ | 20.3 | |||||||||||||||||||
Commercial and industrial | 45.4 | 30.3 | 38.0 | 44.9 | 50.1 | ||||||||||||||||||||||||
Equipment financing | 42.7 | 37.5 | 42.0 | 49.3 | 49.2 | ||||||||||||||||||||||||
Total | 111.3 | 101.4 | 113.5 | 111.4 | 119.6 | ||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||
Residential mortgage | 38.4 | 35.4 | 38.9 | 32.0 | 33.5 | ||||||||||||||||||||||||
Home equity | 14.7 | 14.1 | 15.3 | 14.6 | 15.1 | ||||||||||||||||||||||||
Other consumer | — | — | — | 0.1 | — | ||||||||||||||||||||||||
Total | 53.1 | 49.5 | 54.2 | 46.7 | 48.6 | ||||||||||||||||||||||||
Total originated non-performing loans (1) | $ | 164.4 | 150.9 | 167.7 | 158.1 | 168.2 | |||||||||||||||||||||||
REO: | |||||||||||||||||||||||||||||
Residential | $ | 8.1 | $ | 6.9 | $ | 5.5 | $ | 4.4 | $ | 5.8 | |||||||||||||||||||
Commercial | 0.6 | 4.1 | 8.7 | 8.7 | 9.3 | ||||||||||||||||||||||||
Total REO | 8.7 | 11.0 | 14.2 | 13.1 | 15.1 | ||||||||||||||||||||||||
Repossessed assets | 5.7 | 5.6 | 3.9 | 2.0 | 3.7 | ||||||||||||||||||||||||
Total non-performing assets | $ | 178.8 | $ | 167.5 | $ | 185.8 | $ | 173.2 | $ | 187.0 | |||||||||||||||||||
Originated non-performing loans as a percentage of originated loans | 0.52 | % | 0.49 | % | 0.55 | % | 0.53 | % | 0.56 | % | |||||||||||||||||||
Non-performing assets as a percentage of: | |||||||||||||||||||||||||||||
Originated loans, REO and repossessed assets | 0.56 | 0.54 | 0.61 | 0.57 | 0.62 | ||||||||||||||||||||||||
Tangible stockholders’ equity and originated allowance for loan losses | 4.24 | 4.23 | 4.76 | 4.78 | 5.25 |
from March 31, 2019 to June 30, 2019.
Liquidity
Liquidity |
Stockholders’ Equity and Dividends
Stockholders' Equity and Dividends |
2018.
Regulatory Capital Requirements
Regulatory Capital Requirements |
accordance with regulatory capital rules.
Minimum Capital Required | Classification as Well-Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 Leverage Capital (1): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People’s United | $ | 4,171.6 | 8.7 | % | $ | 1,928.6 | 4.0 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||
Bank | 4,269.0 | 8.9 | 1,928.1 | 4.0 | $ | 2,410.1 | 5.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
CET 1 Risk-Based Capital (2): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People’s United | 3,927.6 | 10.1 | 2,731.8 | 7.0 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
Bank | 4,269.0 | 11.0 | 2,728.3 | 7.0 | 2,533.4 | 6.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital (3): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People’s United | 4,171.6 | 10.7 | 3,317.2 | 8.5 | 2,341.5 | 6.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Bank | 4,269.0 | 11.0 | 3,312.9 | 8.5 | 3,118.1 | 8.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Risk-Based Capital (4): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People’s United | 4,689.3 | 12.0 | 4,097.7 | 10.5 | 3,902.6 | 10.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Bank | 4,835.8 | 12.4 | 4,092.5 | 10.5 | 3,897.6 | 10.0 |
Minimum Capital Required | Classification as | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2018 | Basel III Phase-In (2018) | Well-Capitalized | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 Leverage Capital (1): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People's United | $ | 3,927.2 | 8.7 | % | $ | 1,806.0 | 4.0 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||
Bank | 4,076.0 | 9.0 | 1,805.4 | 4.0 | $ | 2,256.8 | 5.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
CET 1 Risk-Based Capital (2): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People's United | 3,683.1 | 10.3 | 2,289.3 | 6.375 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
Bank | 4,076.0 | 11.4 | 2,287.1 | 6.375 | 2,331.9 | 6.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital (3): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People's United | 3,927.2 | 10.9 | 2,827.9 | 7.875 | 2,154.6 | 6.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Bank | 4,076.0 | 11.4 | 2,825.2 | 7.875 | 2,870.0 | 8.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Risk-Based Capital (4): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
People's United | 4,505.7 | 12.5 | 3,546.1 | 9.875 | 3,591.0 | 10.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Bank | 4,719.1 | 13.2 | 3,542.7 | 9.875 | 3,587.5 | 10.0 |
(dollars in millions) Tier 1 Leverage Capital (1): People’s United Bank CET 1 Risk-Based Capital (2): People’s United Bank Tier 1 Risk-Based Capital (3): People’s United Bank Total Risk-Based Capital (4): People’s United Bank (dollars in millions) Tier 1 Leverage Capital (1): People’s United Bank CET 1 Risk-Based Capital (2): People’s United Bank Tier 1 Risk-Based Capital (3): People’s United Bank Total Risk-Based Capital (4): People’s United Bank Minimum Capital Required Classifiaction as As of September 30, 2017 Basel III Phase-In (2017) Well-Capitalized Amount Ratio Amount Ratio Amount Ratio $ 3,381.1 8.3 % $ 1,634.8 4.0 % N/A N/A 3,508.4 8.6 1,631.1 4.0 $ 2,038.8 5.0 % 3,137.1 9.5 1,899.2 5.750 N/A N/A 3,508.4 10.6 1,896.4 5.750 2,143.8 6.5 3,381.1 10.2 2,394.6 7.250 1,981.8 6.0 3,508.4 10.6 2,391.1 7.250 2,638.5 8.0 3,964.3 12.0 3,055.2 9.250 3,302.9 10.0 4,144.1 12.6 3,050.8 9.250 3,298.1 10.0 Minimum Capital Required Classifiaction as As of December 31, 2016 Basel III Phase-In (2016) Well-Capitalized Amount Ratio Amount Ratio Amount Ratio $ 3,256.1 8.4 % $ 1,546.7 4.0 % N/A N/A 3,430.5 8.9 1,537.0 4.0 $ 1,921.2 5.0 % 3,012.0 9.9 1,981.7 5.125 N/A N/A 3,430.5 11.3 1,969.2 5.125 2,497.6 6.5 3,256.1 10.7 2,023.3 6.625 1,832.4 6.0 3,430.5 11.3 2,019.9 6.625 2,439.1 8.0 3,802.9 12.5 2,634.1 8.625 3,054.0 10.0 4,062.1 13.3 2,629.7 8.625 3,048.9 10.0
Market Risk Management |
U.S. banking agencies recently released proposals for comment intended to simplify certain aspects of the regulatory capital rules and to extend the regulatory capital treatment of certain transition items. Management does not expect the impact of these proposals to have a material effect on the Company’s or the Bank’srisk-based capital ratios.
Market Risk Management
Yield curve twist scenarios assume the shape of the curve flattens or steepens instantaneously centered on the 18-month point of the curve, thereby segmenting the yield curve into a “short-end” and a “long-end”.
Estimated Percent Change in | ||||||||
Parallel Shock Rate Change | Net Interest Income | |||||||
(basis points) | September 30, 2017 | December 31, 2016 | ||||||
+300 | 10.3 | % | 10.1 | % | ||||
+200 | 7.3 | 7.3 | ||||||
+100 | 3.9 | 4.0 | ||||||
-100 | (6.0 | ) | n/a |
(basis points) Short End-100 Short End +100 Short End +200 Long End-100 Long End +100 Long End +200 Estimated Percent Change in Yield Curve Twist Rate Change Net Interest Income September 30, 2017 December 31, 2016 (2.8 )% n/a % 1.8 1.7 3.4 3.3 (3.0 ) (3.4 ) 2.2 2.3 4.2 4.3
scenario modeling.
Estimated Percent Change in Net Interest Income | |||||||||||||||||
Parallel Shock Rate Change (basis points) | |||||||||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||||||
+300 | 8.8 | % | 7.6 | % | |||||||||||||
+200 | 6.3 | 5.3 | |||||||||||||||
+100 | 3.5 | 2.8 | |||||||||||||||
-100 | (4.0) | (3.6) | |||||||||||||||
-200 | (9.3) | (9.9) |
Estimated Percent Change in Net Interest Income | |||||||||||||||||
Yield Curve Twist Rate Change (basis points) | |||||||||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||||||
Short End -100 | (1.6) | % | (1.7) | % | |||||||||||||
Short End +100 | 1.9 | 1.6 | |||||||||||||||
Long End -100 | (2.3) | (1.8) | |||||||||||||||
Long End +100 | 1.7 | 1.3 |
(iii) the repricing of variable-rate loans, the origination of fixed-rate loans as well as the purchase and reinvestment of securities all over the twelve-month forecast horizon.
Parallel Shock Rate Change (basis points) | Estimated Percent Change in | |||||||
Economic Value of Equity | ||||||||
September 30, 2017 | December 31, 2016 | |||||||
+300 | (9.4 | )% | (7.7 | )% | ||||
+200 | (4.3 | ) | (3.1 | ) | ||||
+100 | (0.7 | ) | (0.1 | ) | ||||
-100 | (3.9 | ) | n/a |
drop below zero percent in this rate shock scenario.
Estimated Percent Change in Economic Value of Equity | |||||||||||||||||
Parallel Shock Rate Change (basis points) | |||||||||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||||||
+300 | (10.4) | % | (12.0) | % | |||||||||||||
+200 | (5.2) | (7.2) | |||||||||||||||
+100 | (0.8) | (2.8) | |||||||||||||||
-100 | (4.2) | (1.0) | |||||||||||||||
-200 | (10.7) | (6.7) |
BSB Bancorp.
2019.
Interest Rate Swaps | Foreign Exchange Contracts | |||||||||||
Cash Flow | Fair Value | |||||||||||
As of September 30, 2017 (dollars in millions) | Hedge | Hedge | ||||||||||
Notional principal amounts | $ | 210.0 | $ | 375.0 | $ | 42.6 | ||||||
Weighted average interest rates: | ||||||||||||
Pay floating (receive fixed) | 0.78% (1.82% | ) | Libor +1.265% (4.00% | ) | n/a | |||||||
Weighted average remaining term to maturity (in months) | 37 | 82 | 2 | |||||||||
Fair value: | ||||||||||||
Recognized as an asset | $ | — | $ | — | $ | 0.2 | ||||||
Recognized as a liability | — | — | 0.2 |
Interest Rate Swaps | Foreign Exchange Contracts | ||||||||||||||||||||||
As of June 30, 2019 (dollars in millions) | Cash Flow Hedge | Fair Value Hedge | |||||||||||||||||||||
Notional principal amounts | $ | 210.0 | $ | 375.0 | $ | 49.6 | |||||||||||||||||
Weighted average interest rates: | |||||||||||||||||||||||
Pay floating (receive fixed) | 2.44%(1.72%) | Libor + 1.265% (4.00%) | N/A | ||||||||||||||||||||
Weighted average remaining term to maturity (in months) | 16 | 61 | 1 | ||||||||||||||||||||
Fair value: | |||||||||||||||||||||||
Recognized as an asset | $ | — | $ | — | $ | 0.4 | |||||||||||||||||
Recognized as a liability | — | — | 0.5 |
Interest Rate Swaps/Caps | ||||||||
Commercial | Institutional | |||||||
As of September 30, 2017 (dollars in millions) | Customers | Counterparties | ||||||
Notional principal amounts | $ | 6,101.2 | $ | 5,808.2 | ||||
Weighted average interest rates: | ||||||||
Pay floating (receive fixed) | 1.41% (1.94% | ) | — | |||||
Pay fixed (receive floating) | — | 1.83% (1.41% | ) | |||||
Weighted average remaining term to maturity (in months) | 78 | 78 | ||||||
Fair value: | ||||||||
Recognized as an asset | $ | 91.5 | $ | 10.4 | ||||
Recognized as a liability | 39.7 | 20.8 |
As a result of the LEAF acquisition, the Company assumed two interest-rate caps with a total notional amount of $150 million, both of which mature in December 2017. Prior to the acquisition, LEAF entered into derivative contracts to reduce potential volatility in its financing costsswaps and to manage its interest rate exposure to changes inone-month LIBOR. Subsequent to the LEAF acquisition, hedge accounting was not applied for these derivatives. Such interest rate caps have been excluded from the tables above.
caps:
Interest Rate Swaps | Interest Rate Caps | ||||||||||||||||||||||||||||||||||
As of June 30, 2019 (dollars in millions) | Commercial Customers | Institutional Counterparties | Commercial Customers | Institutional Counterparties | |||||||||||||||||||||||||||||||
Notional principal amounts | $ | 7,860.7 | $ | 7,667.7 | $ | 330.6 | $ | 330.6 | |||||||||||||||||||||||||||
Weighted average interest rates: | |||||||||||||||||||||||||||||||||||
Pay floating (receive fixed) | 2.37%(2.52%) | — | N/A | N/A | |||||||||||||||||||||||||||||||
Pay fixed (receive floating) | — | 2.39%(2.43%) | N/A | N/A | |||||||||||||||||||||||||||||||
Weighted average strike rate | N/A | N/A | 0.52 | % | 0.52 | % | |||||||||||||||||||||||||||||
Weighted average remaining term to maturity (in months) | 79 | 81 | 22 | 22 | |||||||||||||||||||||||||||||||
Fair value: | |||||||||||||||||||||||||||||||||||
Recognized as an asset | $ | 293.9 | $ | 9.1 | $ | 1.7 | $ | 0.8 | |||||||||||||||||||||||||||
Recognized as a liability | 9.1 | 57.9 | 0.8 | 1.7 |
2019:
Total number of | Maximum number | |||||||||||||||
shares purchased as | of shares that may | |||||||||||||||
Total number | Average | part of publicly | yet be purchased | |||||||||||||
of shares | price paid | announced plans | under the plans | |||||||||||||
Period | purchased | per share | or programs | or programs | ||||||||||||
July 1 - 31, 2017: | ||||||||||||||||
Tendered by employees (1) | — | $ | — | — | — | |||||||||||
August 1 - 31, 2017: | ||||||||||||||||
Tendered by employees (1) | 271 | $ | 17.55 | — | — | |||||||||||
September 1 - 30, 2017: | ||||||||||||||||
Tendered by employees (1) | 4,564 | $ | 16.82 | — | — | |||||||||||
|
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|
|
|
| |||||||||||
Total: | ||||||||||||||||
Tendered by employees (1) | 4,835 | $ | 16.86 | — | — | |||||||||||
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|
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|
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Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs | ||||||||||||||||||||||
April 1 - 30, 2019 | ||||||||||||||||||||||||||
Tendered by employees (1) | — | $ | — | — | — | |||||||||||||||||||||
May 1 - 31, 2019 | ||||||||||||||||||||||||||
Tendered by employees (1) | — | $ | — | — | — | |||||||||||||||||||||
June 1 - 30, 2019 | ||||||||||||||||||||||||||
Tendered by employees (1) | 2,520 | $ | 15.36 | — | — | |||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Tendered by employees (1) | 2,520 | $ | 15.36 | — | — |
|
| |||||||
Rule13a-14(a)/15d-14(a) Certifications | ||||||||
Section 1350 Certifications | ||||||||
101.1 | The following financial information from People’s United Financial, Inc.’s Quarterly Report on Form10-Q for the quarterly period ended |
|
| |||||||
Rule13a-14(a)/15d-14(a) Certifications | ||||||||
Section 1350 Certifications | ||||||||
101.1 | The following financial information from People’s United Financial, Inc.’s Quarterly Report on Form10-Q for the quarterly period ended |
PEOPLE’S UNITED FINANCIAL, INC. | |||||||||||||||||||||
Date: | 2019 | By: | /s/ John P. Barnes | ||||||||||||||||||
John P. Barnes | |||||||||||||||||||||
(Principal Executive Officer) | |||||||||||||||||||||
Date: | 2019 | By: | /s/ R. David Rosato | ||||||||||||||||||
R. David Rosato | |||||||||||||||||||||
Senior Executive Vice President and
| |||||||||||||||||||||
Chief Financial Officer | |||||||||||||||||||||
(Principal Financial Officer) | |||||||||||||||||||||
Date: | 2019 | By: | /s/ Jeffrey Hoyt | ||||||||||||||||||
Jeffrey Hoyt | |||||||||||||||||||||
Senior Vice President and
| |||||||||||||||||||||
Chief Accounting Officer | |||||||||||||||||||||
(Principal Accounting Officer) |
112