| Statement Of Financial Position Unclassified - Deposit Based Operations (USD $) | ||
| In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
| Assets | ||
| Cash and due from banks | $343 | 345.1 |
| Short-term investments (note 3) | 2672.8 | 1138.8 |
| Total cash and cash equivalents | 3015.8 | 1483.9 |
| Securities (note 3): | ||
| Trading account securities, at fair value | 12.2 | 21.4 |
| Securities available for sale, at fair value | 446.8 | 1848.3 |
| Securities held to maturity, at amortized cost (fair value of $0.8 million and $0.9 million) | 0.8 | 0.9 |
| Federal Home Loan Bank stock, at cost | 31.1 | 31.1 |
| Total securities | 490.9 | 1901.7 |
| Securities purchased under agreements to resell | 400 | 0 |
| Loans (note 4): | ||
| Commercial real estate | 5234.2 | 4967.3 |
| Commercial | 4094.6 | 4226.4 |
| Residential mortgage | 2950.1 | 3144.6 |
| Consumer | 2273.7 | 2227.4 |
| Total loans | 14552.6 | 14565.7 |
| Less allowance for loan losses | (167) | -157.5 |
| Total loans, net | 14385.6 | 14408.2 |
| Goodwill (note 7) | 1261.7 | 1261.7 |
| Other acquisition-related intangibles (note 7) | 263.6 | 274.1 |
| Premises and equipment | 258.2 | 262.4 |
| Bank-owned life insurance | 233 | 228.6 |
| Other assets (note 11) | 502.7 | 347.1 |
| Total assets | 20811.5 | 20167.7 |
| Deposits: | ||
| Non-interest-bearing | 3310.4 | 3173.4 |
| Savings, interest-bearing checking and money market | 6609.7 | 6214.7 |
| Time | 5102.9 | 4881.3 |
| Total deposits | 15,023 | 14269.4 |
| Borrowings: | ||
| Repurchase agreements | 145.5 | 156.7 |
| Federal Home Loan Bank advances | 14.6 | 15.1 |
| Other | 0 | 16.1 |
| Total borrowings | 160.1 | 187.9 |
| Subordinated notes | 181.2 | 180.5 |
| Other liabilities (note 11) | 310.6 | 354.4 |
| Total liabilities | 15674.9 | 14992.2 |
| Stockholders' Equity | ||
| Common stock ($0.01 par value; 1.95 billion shares authorized; 348.3 million shares and 347.9 million shares issued) | 3.5 | 3.5 |
| Additional paid-in capital | 4500.6 | 4485.1 |
| Retained earnings | 974.7 | 1022.6 |
| Treasury stock, at cost (3.3 million shares and 3.2 million shares) | -60.1 | -57.9 |
| Accumulated other comprehensive loss (note 5) | -83.3 | -75.4 |
| Unallocated common stock of Employee Stock Ownership Plan (9.6 million shares and 9.8 million shares) (note 1) | -198.8 | -202.4 |
| Total stockholders' equity | 5136.6 | 5175.5 |
| Total liabilities and stockholders' equity | 20811.5 | 20167.7 |
| Statement Of Financial Position Unclassified - Deposit Based Operations (Parenthetical) (USD $) | ||
| In Millions, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
| Securities held to maturity, fair value | 0.8 | 0.9 |
| Common stock, par value | 0.01 | 0.01 |
| Common stock, shares authorized | 1,950,000,000 | 1,950,000,000 |
| Common stock, shares issued | 348,300,000 | 347,900,000 |
| Treasury stock, shares | 3,300,000 | 3,200,000 |
| Unallocated common stock of Employee Stock Ownership Plan, shares | 9,600,000 | 9,800,000 |
| Statement Of Income Interest Based Revenue (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Interest and dividend income: | ||||
| Commercial real estate | 70.8 | 74.7 | 139.8 | 152.9 |
| Commercial | 50.6 | 56.9 | 101.2 | 117.5 |
| Residential mortgage | 37.8 | 48.4 | 78.5 | 101.3 |
| Consumer | 24 | 26.8 | 47.9 | 57.9 |
| Total interest on loans | 183.2 | 206.8 | 367.4 | 429.6 |
| Securities | 7.2 | 7.4 | 16.5 | 17.5 |
| Short-term investments | 1.6 | 9.4 | 3.3 | 28.3 |
| Securities purchased under agreements to resell | 0.2 | 3.9 | 0.2 | 7 |
| Total interest and dividend income | 192.2 | 227.5 | 387.4 | 482.4 |
| Interest expense: | ||||
| Deposits | 46.8 | 65.8 | 95 | 149.5 |
| Borrowings | 0.4 | 0.9 | 0.8 | 2 |
| Subordinated notes | 3.8 | 3.8 | 7.6 | 7.6 |
| Total interest expense | 51 | 70.5 | 103.4 | 159.1 |
| Net interest income | 141.2 | 157 | 284 | 323.3 |
| Provision for loan losses (note 2) | 14 | 2.4 | 21.9 | 10.7 |
| Net interest income after provision for loan losses | 127.2 | 154.6 | 262.1 | 312.6 |
| Non-interest income: | ||||
| Investment management fees | 8.6 | 9.5 | 16.1 | 18.3 |
| Insurance revenue | 6.8 | 8.1 | 15.1 | 17.2 |
| Brokerage commissions | 3.2 | 4.2 | 6.5 | 8.7 |
| Total wealth management income | 18.6 | 21.8 | 37.7 | 44.2 |
| Bank service charges | 32.9 | 32.4 | 63.3 | 63.1 |
| Net security gains (losses) (note 3) | 12 | -0.2 | 17.4 | 8.3 |
| Merchant services income | 6.1 | 7.1 | 11.9 | 13.5 |
| Net gains on sales of residential mortgage loans | 3.8 | 2.2 | 5.7 | 4.2 |
| Bank-owned life insurance | 2.7 | 1.7 | 4.3 | 4.7 |
| Other non-interest income | 8.9 | 8.4 | 16.9 | 17.7 |
| Total non-interest income | 85 | 73.4 | 157.2 | 155.7 |
| Non-interest expense: | ||||
| Compensation and benefits | 86.6 | 86.7 | 175.3 | 175.8 |
| Occupancy and equipment | 26.3 | 26.1 | 54.3 | 57.7 |
| Professional and outside service fees | 11.7 | 11.8 | 22.4 | 23.3 |
| Regulatory assessment expense | 11 | 1.2 | 12.6 | 2.4 |
| Merchant services expense | 5.2 | 5.9 | 10.1 | 11.5 |
| Merger-related expenses (note 2) | 0 | 0 | 0 | 36.5 |
| Other non-interest expense (note 7) | 32.3 | 31.2 | 66 | 74.9 |
| Total non-interest expense | 173.1 | 162.9 | 340.7 | 382.1 |
| Income before income tax expense | 39.1 | 65.1 | 78.6 | 86.2 |
| Income tax expense | 11.7 | 22.1 | 24.5 | 28.1 |
| Net income | 27.4 | $43 | 54.1 | 58.1 |
| Earnings per common share (note 6): | ||||
| Basic | 0.08 | 0.13 | 0.16 | 0.18 |
| Diluted | 0.08 | 0.13 | 0.16 | 0.18 |
| Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | |||||||
| In Millions | Common Stock
| Additional Paid-In Capital
| Retained Earnings
| Treasury Stock
| Accumulated Other Comprehensive Loss
| Unallocated ESOP Common Stock
| Total
|
| Beginning Balance at Dec. 31, 2007 | $3 | 3642.8 | 1079.6 | -51.8 | -18.6 | -209.6 | 4445.4 |
| Comprehensive income: | |||||||
| Net income | 58.1 | 58.1 | |||||
| Other comprehensive income, net of tax | 2.3 | 2.3 | |||||
| Common stock issued in the Chittenden Corporation acquisition, net of issuance costs (note 2) | 0.5 | 769.7 | 770.2 | ||||
| Cash dividends on common stock ($0.30 per share in 2009 and $0.28 per share in 2008) | -94.2 | -94.2 | |||||
| Restricted stock awards | 23 | -0.7 | -8.8 | 13.5 | |||
| ESOP common stock committed to be released (note 1) | -0.7 | 3.6 | 2.9 | ||||
| Stock options and related tax benefits | 14.2 | 14.2 | |||||
| SFAS No. 158 effect of changing pension plan measurement date, net of tax (note 1) | -0.3 | (1) | -1.3 | ||||
| Ending Balance at Jun. 30, 2008 | 3.5 | 4449.7 | 1041.8 | -60.6 | -17.3 | (206) | 5211.1 |
| Comprehensive income: | |||||||
| Beginning Balance at Dec. 31, 2008 | 3.5 | 4485.1 | 1022.6 | -57.9 | -75.4 | -202.4 | 5175.5 |
| Comprehensive income: | |||||||
| Net income | 54.1 | 54.1 | |||||
| Other comprehensive income, net of tax | -7.9 | -7.9 | |||||
| Cash dividends on common stock ($0.30 per share in 2009 and $0.28 per share in 2008) | -101.3 | -101.3 | |||||
| Restricted stock awards | 11.6 | -2.2 | 9.4 | ||||
| ESOP common stock committed to be released (note 1) | -0.7 | 3.6 | 2.9 | ||||
| Stock options and related tax benefits | 3.9 | 3.9 | |||||
| Ending Balance at Jun. 30, 2009 | 3.5 | 4500.6 | 974.7 | -60.1 | -83.3 | -198.8 | 5136.6 |
| Beginning Balance at Mar. 31, 2009 | 3.5 | ||||||
| Comprehensive income: | |||||||
| Ending Balance at Jun. 30, 2009 | 3.5 |
| Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $) | ||
| Retained Earnings
| Total
| |
| Cash dividends on common stock, per share | 0.28 | 0.28 |
| Cash dividends on common stock, per share | 0.3 | 0.3 |
| Statement Of Cash Flows Indirect Deposit Based Operations (USD $) | ||||
| In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Cash Flows from Operating Activities: | ||||
| Net income | 27.4 | $43 | 54.1 | 58.1 |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||
| Provision for loan losses | 14 | 2.4 | 21.9 | 10.7 |
| Depreciation and amortization of premises and equipment | 15.4 | 16.1 | ||
| Impairment loss on premises and equipment | 0 | 19.3 | ||
| Amortization of leased equipment | 5.7 | 3.8 | ||
| Amortization of other acquisition-related intangibles | 10.5 | 10.5 | ||
| Net security gains | (12) | 0.2 | -17.4 | -8.3 |
| Net gains on sales of residential mortgage loans | -3.8 | -2.2 | -5.7 | -4.2 |
| ESOP common stock committed to be released | 2.9 | 2.9 | ||
| Expense related to share-based awards | 13 | 11.2 | ||
| Originations of loans held-for-sale | -629.3 | -379.7 | ||
| Proceeds from sales of loans held-for-sale | 477.3 | 343 | ||
| Net decrease (increase) in trading account securities | 9.2 | -10.8 | ||
| Net changes in other assets and liabilities | 30 | -14.9 | ||
| Net cash (used in) provided by operating activities | -12.4 | 57.7 | ||
| Cash Flows from Investing Activities: | ||||
| Net (increase) decrease in securities purchased under agreements to resell | (400) | 28 | ||
| Proceeds from sales of securities available for sale | 539 | 636.1 | ||
| Proceeds from sales of other securities | 5.6 | 6.9 | ||
| Proceeds from principal repayments of securities available for sale | 1589.6 | 746.3 | ||
| Proceeds from principal repayments of securities held to maturity | 0.1 | 0 | ||
| Purchases of securities available for sale | -944.5 | -1251.8 | ||
| Proceeds from sales of loans | 2.7 | 14.6 | ||
| Net loan principal collections | 144.4 | 270.1 | ||
| Purchases of bank-owned life insurance | 0 | -0.2 | ||
| Return of premium on bank-owned life insurance | 0 | 1.4 | ||
| Purchases of premises and equipment | -11.6 | -13.9 | ||
| Purchases of leased equipment | -10.7 | -5.1 | ||
| Net cash paid in sale of branches | -16.2 | 0 | ||
| Proceeds from sales of real estate owned | 2.9 | 3.4 | ||
| Cash paid, net of cash acquired, in acquisition of Chittenden Corporation | 0 | -762.8 | ||
| Net cash provided by (used in) investing activities | 901.3 | (327) | ||
| Cash Flows from Financing Activities: | ||||
| Net increase (decrease) in deposits | 771.8 | -578.7 | ||
| Net (decrease) increase in borrowings with terms of three months or less | -27.3 | 4.4 | ||
| Repayments of borrowings with terms of more than three months | -0.5 | -4.3 | ||
| Cash dividends paid on common stock | -101.3 | -94.2 | ||
| Proceeds from stock options exercised, including excess income tax benefits | 0.3 | 8.7 | ||
| Net cash provided by (used in) financing activities | 643 | -664.1 | ||
| Net increase (decrease) in cash and cash equivalents | 1531.9 | -933.4 | ||
| Cash and cash equivalents at beginning of period | 1483.9 | 3384.2 | ||
| Cash and cash equivalents at end of period | 3015.8 | 2450.8 | 3015.8 | 2450.8 |
| Supplemental Information: | ||||
| Interest payments | 103.2 | 151.5 | ||
| Income tax payments | 29 | 48.4 | ||
| Real estate properties acquired by foreclosure | 6.1 | 1.7 |
| Notes to Financial Statements | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 1. GENERAL | NOTE 1. GENERAL In the opinion of management, the accompanying unaudited consolidated financial statements of Peoples United Financial, Inc. (Peoples United Financial) have been prepared to reflect all adjustments necessary to present fairly the financial position and results of operations as of the dates and for the periods shown. All significant intercompany transactions and balances are eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The company has considered all subsequent events through August7, 2009, the date of issuance of these financial statements, for potential recognition and/or disclosure herein. In preparing the consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from managements current estimates, as a result of changing conditions and future events. The current economic environment has increased the degree of uncertainty inherent in these significant estimates. Note 1 to Peoples United Financials audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December31, 2008, as supplemented by the Quarterly Report on Form 10-Q for the period ended March31, 2009 and this Quarterly Report for the period ended June30, 2009, provides disclosure of Peoples United Financials significant accounting policies. Several accounting estimates are particularly critical and are susceptible to significant near-term change, including the allowance for loan losses, the valuation of derivative financial instruments, and asset impairment judgments, such as other-than-temporary declines in the value of securities and the recoverability of goodwill and other intangible assets. These significant accounting policies and critical estimates are reviewed with the Audit Committee of the Board of Directors. The judgments used by management in applying these critical accounting policies may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan losses in future periods, and the inability to collect outstanding principal may result in increased loan losses. Certain information and footnote disclosures normally included in consolidated financial statements prepared in conformity with U.S. generally accepted accounting principles have been omitted or condensed. As a result, the accompanying consolidated financial statements should be read in conjunction with Peoples United Financials Annual Report on Form 10-K for the year ended December31, 2008. The results of operations for the three and six months ended June30, 2009 are not necessarily indicative of the results of operations that may be expected for the entire year or any other interim period. Bank-Owned Life Insurance Bank-owned life insurance (BOLI) repres |
| NOTE 2. ACQUISITION OF CHITTENDEN CORPORATION | NOTE 2. ACQUISITION OF CHITTENDEN CORPORATION On January1, 2008, Peoples United Financial completed its acquisition of Chittenden Corporation (Chittenden), a multi-bank holding company headquartered in Burlington, Vermont. Total consideration paid in the Chittenden acquisition of $1.8 billion consisted of approximately $1.0 billion in cash and 44.3million shares of Peoples United Financial common stock with a fair value of approximately $0.8 billion. Cash consideration was paid at the rate of $35.636 per share of Chittenden common stock and stock consideration was paid at the rate of 2.0457 shares of Peoples United Financial common stock per share of Chittenden common stock. The acquisition was accounted for as a purchase and accordingly, Chittendens assets and liabilities were recorded by Peoples United Financial at their estimated fair values as of January1, 2008. Goodwill resulting from the Chittenden acquisition totaled $1.16 billion and other acquisition-related intangible assets recorded in connection with the Chittenden acquisition totaled $292.9 million at January1, 2008 (see Note 7). Merger-related expenses totaling $41.0 million were recorded in the first quarter of 2008. Included in this amount was a $4.5 million charge to the provision for loan losses to align allowance for loan losses methodologies across the combined organization. In addition, non-interest expense included $36.5 million of merger-related charges, including asset impairment charges ($19.3 million), costs relating to severance and branch closings ($10.5 million), and other accrued liabilities ($6.7 million). |
| NOTE 3. SECURITIES AND SHORT-TERM INVESTMENTS | NOTE 3. SECURITIES AND SHORT-TERM INVESTMENTS The amortized cost, gross unrealized gains and losses, and fair value of Peoples United Financials securities are as follows: As of June 30, 2009 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading account securities $ 12.2 $ $ $ 12.2 Securities available for sale: Debt securities: U.S. Treasury and agency 11.2 11.2 Government-sponsored enterprise (GSE) residential mortgage-backed securities 435.4 0.6 (1.2 ) 434.8 State and municipal 0.3 0.3 Total debt securities 446.9 0.6 (1.2 ) 446.3 Equity securities 0.5 0.5 Total securities available for sale 447.4 0.6 (1.2 ) 446.8 Securities held to maturity 0.8 0.8 Federal Home Loan Bank (FHLB) stock 31.1 31.1 Total securities $ 491.5 $ 0.6 $ (1.2 ) $ 490.9 As of December 31, 2008 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading account securities $ 21.4 $ $ $ 21.4 Securities available for sale: Debt securities: U.S. Treasury, agency and GSE 1,469.2 2.9 1,472.1 U.S. agency and GSE residential mortgage-backed securities 373.2 2.2 375.4 State and municipal 0.3 0.3 Total debt securities 1,842.7 5.1 1,847.8 Equity securities 0.5 0.5 Total securities available for sale 1,843.2 5.1 1,848.3 Securities held to maturity 0.9 0.9 FHLB stock 31.1 31.1 Total securities $ 1,896.6 $ 5.1 $ $ 1,901.7 Of the 31 securities owned by Peoples United Financial at June 30, 2009, eight state and municipal securities classified as available for sale with a fair value of $0.3 million had continuous unrealized losses for a period greater than 12 months totaling less than $25,000 at that date. In addition, 12 other securities classified as available for sale with a fair value of $336.9 million had continuous unrealized losses for a period less than 12 months totaling $1.2 million at June 30, 2009. These securities included GSE residential mortgage-backed securities ($332.8 million) and U.S. Treasury securities ($4.1 million) whose unrealized losses were attributable to changes in interest rates. Management reviews securities with unrealized losses on a regular basis in accordance with the applicable impairment measurement and recognition guidance including SFAS No. 115, SAB No. 111, FSP FAS 115-1 and FAS 124-1, and FSP |
| NOTE 4. LOANS | NOTE 4. LOANS The components of Peoples United Financials loan portfolio are summarized as follows: (in millions) June30, 2009 December31, 2008 Commercial real estate: Retail $ 1,266.2 $ 1,204.5 Office buildings 1,229.3 1,047.4 Residential 759.4 766.4 Industrial/manufacturing 656.2 643.2 Hospitality and entertainment 534.8 544.3 Mixed/Special use 261.5 252.2 Land 175.2 172.6 Self storage/industrial 122.2 125.5 Health care 92.7 86.4 Other properties 136.7 124.8 Total commercial real estate 5,234.2 4,967.3 Commercial and industrial: Finance, insurance and real estate 605.7 618.3 Manufacturing 583.9 633.3 Service 525.3 571.4 Wholesale distribution 263.8 289.5 Retail sales 202.8 195.0 Health services 183.1 169.3 Construction 126.1 130.2 Public administration 88.5 107.8 Transportation/utility 74.4 77.7 Arts/entertainment/recreation 64.7 65.3 Agriculture 32.5 33.6 Other 83.3 108.1 Total commercial and industrial (1) 2,834.1 2,999.5 Peoples Capital and Leasing Corp.: Printing 416.9 415.4 Transportation/utility 364.6 339.5 General manufacturing 173.0 166.1 Rental/leasing/retail 132.6 135.6 Packaging 86.1 87.3 Service 37.3 33.8 Health services 27.6 25.5 Wholesale distribution 22.4 23.7 Total PCLC (1) 1,260.5 1,226.9 Residential mortgage: Adjustable rate 2,572.2 2,857.2 Fixed rate 377.9 287.4 Total residential mortgage 2,950.1 3,144.6 Consumer: Home equity credit lines 1,708.9 1,619.8 Second mortgages 276.6 325.7 Indirect auto 234.9 224.8 Other 53.3 57.1 Total consumer 2,273.7 2,227.4 Total loans $ 14,552.6 $ 14,565.7 (1) Reported as commercial loans in the Consolidated Statements of Condition. Residential mortgage loans at June30, 2009 and December31, 2008 included loans held for sale (all to be sold servicing released) of $189.4 million and $6.1 million, respectively, which approximate fair value. |
| NOTE 5. COMPREHENSIVE INCOME | NOTE 5. COMPREHENSIVE INCOME Comprehensive income represents the sum of net income and items of other comprehensive income or loss that are reported directly in stockholders equity on an after-tax basis. These items include (i)net actuarial gains and losses, prior service credits and costs, and transition assets and obligations related to Peoples United Financials pension and other postretirement benefit plans, (ii)net unrealized gains or losses on securities available for sale, and (iii)net gains or losses on derivatives accounted for as cash flow hedges. Peoples United Financials total comprehensive income for the six months ended June30, 2009 and 2008 is reported in the Consolidated Statements of Changes in Stockholders Equity. The components of accumulated other comprehensive loss, which is included in Peoples United Financials stockholders equity on an after-tax basis, are as follows: (in millions) June30, 2009 December31, 2008 Net actuarial loss and other amounts related to pension and other postretirement benefit plans $ (103.7 ) $ (106.0 ) Net gain on derivatives accounted for as cash flow hedges 20.8 26.8 Net unrealized (loss) gain on securities available for sale (0.4 ) 3.8 Total accumulated other comprehensive loss $ (83.3 ) $ (75.4 ) The increase in total accumulated other comprehensive loss from December31, 2008 consisted of an after-tax decrease in the net gain on derivatives accounted for as cash flow hedges ($6.0 million) and an after-tax increase in the net unrealized loss on securities available for sale ($4.2 million), partially offset by an after-tax decrease in the net actuarial loss and other amounts related to pension and other postretirement benefit plans ($2.3 million). Other comprehensive loss, which is presented net of tax, totaled $7.9 million for the six months ended June30, 2009. There are no other-than-temporary impairment losses recognized in accumulated other comprehensive loss at June 30, 2009 pursuant to FSP FAS 115-2 and 124-2 (see Note 3). |
| NOTE 6. EARNINGS PER COMMON SHARE | NOTE 6. EARNINGS PER COMMON SHARE The following is an analysis of Peoples United Financials basic and diluted earnings per share (EPS): ThreeMonthsEnded Six Months Ended (in millions, except per share data) June30, 2009 June30, 2008 June30, 2009 June30, 2008 Net income $ 27.4 $ 43.0 $ 54.1 $ 58.1 Average common shares outstanding for basic EPS 331.8 328.7 331.7 328.3 Effect of dilutive stock options and unvested stock awards 1.2 1.5 1.2 1.4 Average common and common-equivalent shares for diluted EPS 333.0 330.2 332.9 329.7 Basic EPS $ 0.08 $ 0.13 $ 0.16 $ 0.18 Diluted EPS $ 0.08 $ 0.13 $ 0.16 $ 0.18 All unallocated ESOP common shares and all common shares accounted for as treasury shares have been excluded from the calculation of basic and diluted earnings per share. Anti-dilutive stock options and unvested stock awards excluded from the calculation of diluted EPS totaled 9.6million for both the three and six months ended June30, 2009, and 9.7million and 10.2million for the three and six months ended June30, 2008, respectively. Effective January1, 2009, Peoples United Financial adopted the FSP on Emerging Issues Task Force (EITF) Issue No.03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities. Under FSP EITF 03-6-1, unvested share-based payment awards that include the right to receive non-forfeitable dividends or dividend equivalents are considered to participate with common stock in undistributed earnings. Accordingly, companies that issue share-based payment awards considered to be participating securities under FSP EITF 03-6-1 are required to calculate basic and diluted earnings per common share amounts under the two-class method. The two-class method excludes from earnings per common share calculations any dividends paid or owed to participating securities and any undistributed earnings considered to be attributable to participating securities. FSP EITF 03-6-1 requires retrospective application to all prior-period earnings per share data presented. The adoption of FSP EITF 03-6-1 did not change earnings per common share amounts for the three and six months ended June30, 2009 or 2008. |
| NOTE 7. GOODWILL AND OTHER ACQUISITION-RELATED INTANGIBLE ASSETS | NOTE 7. GOODWILL AND OTHER ACQUISITION-RELATED INTANGIBLE ASSETS Peoples United Financials goodwill totaled $1.26 billion at both June30, 2009 and December31, 2008. At June30, 2009, goodwill was allocated to Peoples United Financials business segments as follows: Commercial Banking ($616.9 million), Retail Banking and Small Business ($595.0 million), and Wealth Management ($49.8 million). Peoples United Financials other acquisition-related intangible assets totaled $263.6 million and $274.1 million at June30, 2009 and December31, 2008, respectively. At June30, 2009, the carrying amounts of other acquisition-related intangible assets were as follows: core deposits intangible ($98.7 million); trust relationships ($38.4 million); insurance relationships ($3.8 million); and trade names ($122.7 million). Trade names recognized by Peoples United Financial are deemed to have indefinite useful lives and, accordingly, are not amortized. Amortization expense of other acquisition-related intangible assets, which is included in other non-interest expense in the Consolidated Statements of Income, totaled $5.3 million for both the three months ended June30, 2009 and 2008, and $10.5 million for both the six months ended June30, 2009 and 2008. The estimated aggregate amortization expense attributable to other acquisition-related intangible assets for the full-year of 2009 and each of the next five years is as follows: $20.5 million in 2009; $18.4 million in 2010; $16.8 million in 2011; $15.5 million in 2012; $14.9 million in 2013; and $13.7 million in 2014. |
| NOTE 8. COMMITMENTS AND CONTINGENCIES | NOTE 8. COMMITMENTS AND CONTINGENCIES In the normal course of business, Peoples United Financial has various outstanding commitments and contingent liabilities that are not required to be and, therefore, have not been reflected in the consolidated financial statements. In addition, in the normal course of business, Peoples United Financial is subject to various legal proceedings. Management has discussed the nature of these legal proceedings with legal counsel. In the opinion of management, Peoples United Financials financial condition and results of operations will not be affected materially as a result of the outcome of such commitments, contingent liabilities and legal proceedings. |
| NOTE 9. BUSINESS SEGMENT INFORMATION | NOTE 9. BUSINESS SEGMENT INFORMATION See Business Segment Results in Item2 for segment information for the three and six months ended June30, 2009 and 2008. |
| NOTE 10. FAIR VALUE MEASUREMENTS | NOTE 10. FAIR VALUE MEASUREMENTS Effective January1, 2008, Peoples United Financial adopted the provisions of SFAS No.157, Fair Value Measurements, for (i)all financial instruments and (ii)non-financial instruments accounted for at fair value on a recurring basis, if any. FSP FAS 157-2, Effective Date of FASB Statement No.157, deferred until January1, 2009 the effective date of SFAS No.157 for non-financial instruments that are recognized or disclosed at fair value in the financial statements on a non-recurring basis. Accordingly, the fair value measurement and disclosure provisions of SFAS No.157 now also apply to Peoples United Financial for the following valuation measures: (i)goodwill and other acquisition-related intangible assets; (ii)real estate acquired by foreclosure; and (iii)other long-lived assets. In April 2009, the FASB issued FSP FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly. FSP FAS 157-4 affirms that the objective of fair value, even when the market for an asset is not active, is the price that would be received to sell the asset in an orderly transaction. In order to address application issues, FSP FAS 157-4 clarifies and provides additional factors to be considered in determining whether there has been a significant decrease in market activity for an asset when the market for that asset is not active, requiring an entity to base its conclusion about whether a transaction was not orderly on the weight of all available evidence. FSP FAS 157-4 also amended SFAS No.157 to expand certain disclosure requirements. FSP FAS 157-4 was effective for the quarter ended June30, 2009 and did not result in any significant change in valuation techniques and related inputs, or the resulting fair values. SFAS No.157 defines fair value, establishes a new framework for measuring fair value, and expands related disclosures. The provisions of SFAS No.157 are to be applied whenever other standards require (or permit) assets and liabilities to be measured at fair value, but does not require the use of fair value measurements in any new circumstances. Broadly, the SFAS No.157 framework defines fair value 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. Accordingly, SFAS No.157 requires an exit price approach to value. In support of this principle, SFAS No.157 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, requiring entities to maximize the use of market or observable inputs (as more reliable measures) and minimize the use of unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs generally require significant management judgment. The three levels within the SFAS No.157 fair value hierarchy are as follows: Level 1Unadjusted quoted market prices for identical assets or liabilities in active markets that |
| NOTE 11. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 11. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In March 2008, the FASB issued SFAS No.161, Disclosures about Derivative Instruments and Hedging Activities, an Amendment of FASB Statement No.133. SFAS No.161 changes the disclosure requirements for derivative instruments and hedging activities and specifically requires (i)qualitative disclosures about objectives and strategies for using derivatives, (ii)quantitative disclosures about fair value amounts of, and gains and losses on, derivative instruments, and (iii)disclosures about credit risk-related contingent features in derivative agreements. The provisions of SFAS No.161 were effective for interim and annual financial statements issued beginning with the first quarter of 2009. Accordingly, the following footnote provides the disclosures applicable to Peoples United Financial. Peoples United Financial uses derivative financial instruments as components of its market risk management (principally to manage interest rate risk). Certain other derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes. All derivatives are recognized as either assets or liabilities and are measured at fair value. Until such time that a derivative is settled, favorable changes in fair values result in unrealized gains that are recognized as assets, while unfavorable changes result in unrealized losses that are recognized as liabilities. Peoples United Financial generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exist between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. The hedge accounting method depends upon whether the derivative instrument is classified as a fair value hedge (i.e. hedging an exposure related to a recognized asset or liability, or a firm commitment) or a cash flow hedge (i.e. hedging an exposure related to the variability of future cash flows associated with a recognized asset or liability, or forecasted transaction). Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recorded in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income or loss until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings. If it is determined that a derivative is not highly effective or has ceased to be a highly effective hedge, Peoples United Financial would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in accumulated other comprehensive income or loss and are amortized to earnings over the remaining per |
| NOTE 12. FAIR VALUES OF FINANCIAL INSTRUMENTS | NOTE 12. FAIR VALUES OF FINANCIAL INSTRUMENTS The following is a summary of the carrying amounts and estimated fair values of Peoples United Financials financial instruments: June30, 2009 December31, 2008 (in millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets (other than derivatives): Cash and cash equivalents $ 3,015.8 $ 3,015.8 $ 1,483.9 $ 1,483.9 Securities (1) 490.9 490.9 1,901.7 1,901.7 Securities purchased under agreements to resell 400.0 400.0 Loans, net 14,385.6 14,491.7 14,408.2 14,598.9 Accrued interest receivable 55.0 55.0 55.7 55.7 Financial liabilities (other than derivatives): Time deposits 5,102.9 5,138.7 4,881.3 4,926.9 Other deposits 9,920.1 9,920.1 9,388.1 9,388.1 Repurchase agreements 145.5 145.5 156.7 156.6 Federal Home Loan Bank advances 14.6 14.7 15.1 15.1 Other borrowings 16.1 16.0 Subordinated notes 181.2 182.8 180.5 162.6 Accrued interest payable 8.3 8.3 8.8 8.8 Derivative financial instruments: (2) Recognized as an asset: Interest rate floors 46.3 46.3 Interest rate swaps 7.1 7.1 7.3 7.3 Foreign exchange contracts 0.4 0.4 Interest rate-lock commitments on residential mortgage loans 0.5 0.5 Forward commitments to sell residential mortgage loans 0.5 0.5 Recognized as a liability: Interest rate swaps 6.8 6.8 7.7 7.7 Foreign exchange contracts 0.5 0.5 Forward commitments to sell residential mortgage loans 0.5 0.5 Interest rate-lock commitments on residential mortgage loans 0.5 0.5 (1) Includes (i) trading account securities totaling $12.2 million and $21.4 million at June30, 2009 and December31, 2008, respectively (no other financial instruments in this table were held for trading purposes), and (ii) FHLB stock, reported at cost, totaling $31.1 million at both June30, 2009 and December31, 2008. (2) See Note 11 for a further discussion of derivative financial instruments. As stated in Note 10, Peoples United Financial adopted the provisions of SFAS No.157 on January1, 2008. SFAS No.157 defines fair value 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. Accordingly, SFAS No.157 requires an exit price approach to value. SFAS No.107, Disclosure about Fair Value of Financial Instruments, which requires disclosures about the fair values of financial instruments for which it is practicable to estimate fair value, was |
| NOTE 13. NEW ACCOUNTING STANDARDS | NOTE 13. NEW ACCOUNTING STANDARDS In December 2007, the FASB issued SFAS No.141 (R), Business Combinations (Revised 2007), which replaces SFAS No.141, Business Combinations, and applies to all transactions and other events in which one entity obtains control over one or more other businesses. SFAS No.141 (R)requires an acquirer, upon initially obtaining control of another entity, to recognize the assets, liabilities and any non-controlling interest in the acquiree, if any, at fair value as of the acquisition date. Contingent consideration, if any, is required to be recognized and measured at fair value on the date of acquisition rather than at a later date when the amount of that consideration may be determinable beyond a reasonable doubt. This fair value approach replaces the cost-allocation process required under SFAS No.141, whereby the cost of an acquisition was allocated to the individual assets acquired and liabilities assumed based on their estimated fair value. In addition, SFAS No.141 (R)requires (i)that acquisition-related transaction costs be expensed as incurred rather than allocating such costs to the assets acquired and liabilities assumed, as was previously the case under SFAS No.141, (ii)that the requirements of SFAS No.146, Accounting for Costs Associated with Exit or Disposal Activities, be met in order to accrue for a restructuring plan in purchase accounting, and (iii)that certain pre-acquisition contingencies be recognized at fair value. In April 2009, the FASB issued FSP FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination that Arise from Contingencies, which amends and clarifies SFAS No.141(R) to address application issues with respect to initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. Peoples United Financial adopted SFAS No.141(R) and FSP FAS 141(R)-1 effective January1, 2009 and will apply their provisions prospectively to business combinations completed after that date. In December 2008, the FASB issued FSP FAS 132 (R)-1, Employers Disclosures about Postretirement Benefit Plan Assets, to provide guidance on an employers disclosures about plan assets of a defined benefit pension or other postretirement plan. In particular, FSP 132 (R)-1 requires that employers disclose the following with respect to such plans: (i)how investment allocation decisions are made; (ii)the major categories of plan assets, including concentrations of risk and related fair value measurements; and (iii)the fair value techniques and pertinent inputs used to determine the fair value of plan assets. The provisions of FSP 132 (R)-1 are effective for Peoples United Financial on a prospective basis beginning with the fiscal year ending December31, 2009. In May 2009, the FASB issued SFAS No.165, Subsequent Events, which establishes standards related to the accounting for and disclosure of events that occur after the balance sheet date but prior to the date the financial statements are issued or available to be issued. The provisions of SFAS No.165 were effective for the qu |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-06-30 |
| Entity Information (USD $) | |||
| 6 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Jun. 30, 2008
| |
| Entity [Text Block] | |||
| Trading Symbol | PBCT | ||
| Entity Registrant Name | People's United Financial, Inc. | ||
| Entity Central Index Key | 0001378946 | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Current Reporting Status | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Common Stock, Shares Outstanding | 348,371,961 | ||
| Entity Public Float | $5,409,129,071 |
