People's United Financial (PBCT) 10-K 1 Mar 10 2009 FY Annual report Financial data

Statement Of Financial Position

Statement Of Financial Position Unclassified - Deposit Based Operations (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Assets
Cash and due from banks (note 4)	$326	345.1
Short-term investments (note 4)	3,092	1138.8
Total cash and cash equivalents	3,418	1483.9
Securities purchased under agreements to resell	400	0
Securities (note 5):
Trading account securities, at fair value	75.7	21.4
Securities available for sale, at fair value	739.7	1848.3
Securities held to maturity, at amortized cost (fair value of $55.3 million and $0.9 million)	55.3	0.9
Federal Home Loan Bank stock, at cost	31.1	31.1
Total securities	901.8	1901.7
Loans (note 6):
Commercial real estate	5399.4	4967.3
Commercial	4042.5	4226.4
Residential mortgage	2546.9	3144.6
Consumer	2,245	2227.4
Total loans	14233.8	14565.7
Less allowance for loan losses	-172.5	-157.5
Total loans, net	14061.3	14408.2
Goodwill (notes 3 and 8)	1261.7	1261.7
Other acquisition-related intangibles (notes 3 and 8)	253.5	274.1
Premises and equipment (note 7)	264.5	262.4
Bank-owned life insurance	235.1	228.6
Other assets (note 9)	461.3	347.1
Total assets	21257.2	20167.7
Deposits (note 10):
Non-interest-bearing	3,509	3173.4
Savings, interest-bearing checking and money market	7327.9	6214.7
Time	4608.7	4881.3
Total deposits	15445.6	14269.4
Borrowings (note 11):
Repurchase agreements	144.1	156.7
Federal Home Loan Bank advances	14.8	15.1
Other	0	16.1
Total borrowings	158.9	187.9
Subordinated notes (note 12)	181.8	180.5
Other liabilities (notes 1 and 13)	370.2	356.1
Total liabilities	16156.5	14993.9
Stockholders' Equity (notes 2, 3 and 14)
Common stock ($0.01 par value; 1.95 billion shares authorized; 348.2 million shares and 347.9 million shares issued)	3.5	3.5
Additional paid-in capital	4511.3	4485.1
Retained earnings (note 1)	914.5	1020.9
Treasury stock, at cost (3.2 million shares at both dates)	-58.6	-57.9
Accumulated other comprehensive loss (note 17)	-74.8	-75.4
Unallocated common stock of Employee Stock Ownership Plan, at cost (9.4 million shares and 9.8 million shares)	-195.2	-202.4
Total stockholders' equity	5100.7	5173.8
Total liabilities and stockholders' equity	21257.2	20167.7

1_Statement Of Financial Positi

Statement Of Financial Position Unclassified - Deposit Based Operations (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Securities held to maturity, fair value	55.3	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	348,200,000	347,900,000
Treasury stock, shares	3,200,000	3,200,000
Unallocated common stock of Employee Stock Ownership Plan, shares	9,400,000	9,800,000

Statement Of Income Interest Ba

Statement Of Income Interest Based Revenue (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Interest and dividend income:
Commercial real estate	287.8	302.1	127.7
Commercial	198.9	229.1	167.6
Residential mortgage	145	189.9	183.9
Consumer	95.4	110.9	88.9
Total interest on loans	727.1	832	568.1
Securities	32.4	30.8	3.9
Short-term investments	6.5	46.9	86.7
Securities purchased under agreements to resell	0.8	7.5	48.3
Total interest and dividend income	766.8	917.2	707
Interest expense:
Deposits (note 10)	173.4	262.1	213.6
Borrowings (note 11)	1.5	3.5	0.2
Subordinated notes	15.1	15.2	6.6
Total interest expense	190	280.8	220.4
Net interest income	576.8	636.4	486.6
Provision for loan losses (note 6)	57	26.2	8
Net interest income after provision for loan losses	519.8	610.2	478.6
Non-interest income:
Investment management fees	32.4	36.8	12
Insurance revenue	30	33.3	26.8
Brokerage commissions	12.2	16	13.6
Total wealth management income	74.6	86.1	52.4
Bank service charges	128.8	127.7	93.1
Merchant services income	24.9	27.6	0
Net security gains (note 5)	22	8.3	5.5
Net gains on sales of residential mortgage loans (note 6)	13.9	6.5	3
Bank-owned life insurance	8.4	8.3	10.5
Other non-interest income (note 7)	36.5	39.1	20.9
Total non-interest income	309.1	303.6	185.4
Non-interest expense:
Compensation and benefits (notes 18 and 19)	350.5	344.6	215.6
Occupancy and equipment	109.8	110.3	67.1
Professional and outside service fees	44	48	28.8
Merchant services expense	21	23.9	0
Merger-related expenses (note 3)	2	36.5	0
Contribution to The People's United Community Foundation (note 2)	0	0	60
Other non-interest expense (notes 1, 7 and 8)	157.3	145.7	67.8
Total non-interest expense	684.6	709	439.3
Income from continuing operations before income tax expense	144.3	204.8	224.7
Income tax expense (notes 1 and 13)	43.1	67	75.5
Income from continuing operations	101.2	137.8	149.2
Income from discontinued operations, net of tax (note 24)	0	0	1.5
Net income (note 1)	101.2	137.8	150.7
Basic:
Income from continuing operations	0.3	0.41	0.52
Net income	0.3	0.41	0.52
Diluted:
Income from continuing operations	0.3	0.41	0.52
Net income	0.3	0.41	0.52

Statement Of Shareholders Equit

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, 2006	142.2	182.9	1062.4	$0	($48)	$0	1339.5
Comprehensive income:
Net income			150.7				150.7
Other comprehensive income (loss), net of tax (note 17)					29.4		29.4
Exchange of common stock pursuant to second-step conversion (note 2)	(59)	59					0
Net proceeds from issuance of common stock pursuant to second-step conversion (note 2)	1.7	3333.1					3334.8
Common stock issued and contributed to The People's United Community Foundation (note 2)		40					40
Cancellation of common stock owned by People's Mutual Holdings (note 2)	(82)	82					0
Capital contribution pursuant to dissolution of People's Mutual Holdings (note 2)		8.1					8.1
Cash dividends on common stock ($0.61 in 2009, $0.58 in 2008 and $0.52 in 2007 per share)			-131.1				-131.1
Restricted stock awards		-67.7	-1.5	75.3			6.1
ESOP common stock committed to be released (note 18)			-0.9			7.2	6.3
Stock options and related tax benefits	0.1	5.4					5.5
Ending Balance at Dec. 31, 2007	3	3642.8	1079.6	-51.8	-18.6	-209.6	4445.4
Comprehensive income:
Net income			137.8				137.8
Other comprehensive income (loss), net of tax (note 17)					-55.8		-55.8
Common stock issued in the Chittenden Corporation acquisition, net of issuance costs (note 3)	0.5	769.7					770.2
Cash dividends on common stock ($0.61 in 2009, $0.58 in 2008 and $0.52 in 2007 per share)			-194.4				-194.4
Restricted stock awards		29.6	-0.6	-6.1			22.9
ESOP common stock committed to be released (note 18)			-1.2			7.2	6
Stock options and related tax benefits		40.3					40.3
Tax benefits related to dissolution of People's Mutual Holdings (note 2)		2.7					2.7
Effect of changing pension plan measurement date, net of tax (note 18)			-0.3		(1)		-1.3
Ending Balance at Dec. 31, 2008	3.5	4485.1	1020.9	-57.9	-75.4	-202.4	5173.8
Comprehensive income:
Net income			101.2				101.2
Other comprehensive income (loss), net of tax (note 17)					0.6		0.6
Cash dividends on common stock ($0.61 in 2009, $0.58 in 2008 and $0.52 in 2007 per share)			-203.6				-203.6
Restricted stock awards		18.5	-0.1	-0.7			17.7
ESOP common stock committed to be released (note 18)			-1.5			7.2	5.7
Common stock repurchased and retired (note 19)			-2.4				-2.4
Stock options and related tax benefits		7.7					7.7
Ending Balance at Dec. 31, 2009	3.5	4511.3	914.5	-58.6	-74.8	-195.2	5100.7

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash dividends on common stock, per share	0.61	0.58	0.52

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Deposit Based Operations (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows from Operating Activities:
Net income	101.2	137.8	150.7
Income from discontinued operations, net of tax	0	0	-1.5
Income from continuing operations	101.2	137.8	149.2
Adjustments to reconcile income from continuing operations to net cash provided by operating activities of continuing operations:
Provision for loan losses	57	26.2	8
Depreciation and amortization of premises and equipment	32.8	31.7	18.4
Impairment loss on premises and equipment	0	19.3	0
Amortization of leased equipment	12.3	8.3	6.1
Amortization of other acquisition-related intangibles	20.6	21.3	1
Deferred income tax benefit	-14.6	-15.4	-5.7
Net security gains	(22)	-8.3	-5.5
Net gains on sales of residential mortgage loans	-13.9	-6.5	(3)
ESOP common stock committed to be released	5.7	6	6.3
Expense related to share-based awards	24.7	22.1	8
Originations of loans held-for-sale	-1143.2	-587.3	-383.8
Proceeds from sales of loans held-for-sale	1117.5	535.3	335.3
Net (increase) decrease in trading account securities	-54.3	-2.7	10.9
Contribution of common stock to The People's United Community Foundation	0	0	40
Net changes in other assets and other liabilities	-20.3	37.3	-5.4
Net cash provided by operating activities of continuing operations	103.5	225.1	179.8
Cash Flows from Investing Activities:
Net (increase) decrease in securities purchased under agreements to resell	(400)	428	(428)
Proceeds from sales of securities available for sale	1041.1	645.5	5.4
Proceeds from sales of other securities	5.6	6.9	0
Proceeds from principal repayments of securities available for sale	1,646	1610.6	101.2
Proceeds from principal repayments of securities held to maturity	0.6	0.5	0.5
Purchases of securities available for sale	-1595.8	-3131.7	-96.5
Purchases of securities held to maturity	(55)	0	0
Proceeds from sales of loans	9.3	53.2	4.9
Net loan principal collections	288	29.8	443.7
Purchases of premises and equipment	-35.3	-28.3	-38.4
Purchases of leased equipment	-26.2	-22.6	-25.1
Net cash paid in sales of branches	-16.2	-20.7	0
Proceeds from sales of real estate owned	8.8	4.1	0.1
Purchases of bank-owned life insurance	0	-0.2	-0.5
Return of premiums on bank-owned life insurance	0	1.4	0.5
Cash paid, net of cash acquired, in acquisition of Chittenden Corporation	0	-762.8	0
Net cash provided by (used in) investing activities from continuing operations	870.9	-1186.3	-32.2
Cash Flows from Financing Activities:
Net increase (decrease) in deposits	1194.5	-817.1	(202)
Net (decrease) increase in borrowings with terms of three months or less	-28.8	48.7	-4.1
Repayments of borrowings with terms of more than three months	-1.1	-4.7	0
Proceeds from borrowings with terms of more than three months	0.7	0	0
Cash dividends paid on common stock	-203.6	-194.4	-131.1
Common stock repurchased and retired	-2.4	0	0
Net proceeds from issuance of common stock pursuant to second-step conversion	0	0	3334.8
Capital contribution pursuant to dissolution of People's Mutual Holdings	0	0	8.1
Proceeds from stock options exercised, including excess income tax benefits	0.4	28.4	4.6
Net cash provided by (used in) financing activities from continuing operations	959.7	-939.1	2666.4
Cash Flows from Discontinued Operations:
Operating activities	0	0	1.5
Net cash provided by discontinued operations	0	0	1.5
Net increase (decrease) in cash and cash equivalents	1934.1	-1900.3	2815.5
Cash and cash equivalents at beginning of year	1483.9	3384.2	568.7
Cash and cash equivalents at end of year	3,418	1483.9	3384.2
Supplemental Information:
Interest payments	190.2	271.4	220.2
Income tax payments	48.7	82.2	82.2
Real estate properties acquired by foreclosure	26.3	7.6	6.9
Recognition And Retention Plan RRP
Cash Flows from Financing Activities:
Purchase of common stock	0	0	-127.1
Employee Stock Ownership Plan (ESOP), Plan
Cash Flows from Financing Activities:
Purchase of common stock	$0	$0	-216.8

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies	NOTE 1Summary of Significant Accounting Policies Peoples United Financial, Inc. is a Delaware corporation and the holding company for Peoples United Bank. On April16, 2007, Peoples United Financial, Peoples United Bank and Peoples Mutual Holdings completed their second-step conversion from a mutual holding company structure to a fully-public stock holding company structure. See Note 2 for a further discussion of the second-step conversion. On June6, 2007, Peoples Bank changed its name to Peoples United Bank. The name Peoples United Bank is used to refer to the Bank both before and after the name change. On January1, 2008, Peoples United Financial completed its acquisition of Chittenden Corporation, a multi-bank holding company headquartered in Burlington, Vermont. 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 that date. Financial data for periods prior to the acquisition date do not include the results of Chittenden. See Note 3 for a further discussion of the acquisition. The principal business of Peoples United Financial is to provide, through Peoples United Bank and its subsidiaries, commercial banking, retail and small business banking, and wealth management services to individual, corporate and municipal customers. Peoples United Bank, which is a federally-chartered stock savings bank, provides a full range of traditional banking services, including accepting deposits and originating loans, as well as specialized financial services through its non-bank subsidiaries, including: brokerage, financial advisory services, investment management services and life insurance through Peoples Securities, Inc.; equipment financing through Peoples Capital and Leasing Corp. (PCLC); and other insurance services through R.C. Knox and Company, Inc. and Chittenden Insurance Group, LLC. Peoples United Financials overall financial results are particularly dependent on economic conditions in New England, which is its primary market, although economic conditions elsewhere in the United States affect its equipment financing and national lending businesses. Deposits are insured up to applicable limits by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (the FDIC). Peoples United Financial is a savings and loan holding company within the meaning of the Home Owners Loan Act. As such, Peoples United Financial is regulated by the Office of Thrift Supervision (the OTS) and subject to OTS examination, supervision and reporting requirements. Under its federal charter, Peoples United Bank is regulated by the OTS. Basis of Financial Statement Presentation The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles and include the accounts of Peoples United Financial and its subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. In preparing the consolidated financial statements, ma

Second-Step Conversion

Second-Step Conversion
	12 Months Ended Dec. 31, 2009 USD / shares
Second-Step Conversion	NOTE 2Second-Step Conversion On April16, 2007, Peoples United Financial, Inc., Peoples United Bank and Peoples Mutual Holdings completed their second-step conversion from a mutual holding company structure to a fully-public stock holding company structure. Peoples Mutual Holdings merged with and into Peoples United Bank, with Peoples United Bank as the surviving entity, and Peoples United Bank became a wholly-owned subsidiary of Peoples United Financial, Inc. The dissolution of Peoples Mutual Holdings resulted in credits to additional paid-in capital of (i)$8.1 million at the merger date, and (ii)$2.7 million in 2008 related to Peoples Mutual Holdings tax net operating loss carryforwards utilized by Peoples United Financial upon filing its 2007 federal income tax return. Peoples United Financial sold 172.2million shares of common stock in a public offering at a price of $20 per share. Net proceeds from the stock offering totaled approximately $3.33 billion, after deducting approximately $110 million in offering costs. Peoples United Financial also exchanged 2.1 shares of its common stock for each share of Peoples United Bank common stock outstanding, except for those shares owned by Peoples Mutual Holdings. Additionally, in connection with the second-step conversion, Peoples United Financial contributed 2.0million shares of its common stock, with a fair market value of $40 million, and $20 million in cash to The Peoples United Community Foundation (included in non-interest expense in the Consolidated Statements of Income).

Acquisition of Chittenden Corpo

Acquisition of Chittenden Corporation
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisition of Chittenden Corporation	NOTE 3Acquisition 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. At December31, 2007, Chittenden had total assets of $7.4 billion, total loans of $5.7 billion, total deposits of $6.2 billion and 140 branches. Total consideration paid in the Chittenden acquisition of approximately $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. Financial data for periods prior to the acquisition date do not include the results of Chittenden. Merger-related charges totaling $41.0 million were recorded in the first quarter of 2008, representing: (i) a $4.5 million charge to the provision for loan losses to align allowance for loan loss methodologies across the combined organization; and (ii) $36.5 million of merger-related expenses. The latter amount consists of asset impairment charges ($19.3 million), principally to write-off certain capitalized costs, costs relating to severance and branch closings ($10.5 million), and other accrued liabilities ($6.7 million). The acquisition cost was allocated to the assets acquired and liabilities assumed based on estimates of fair value at the date of acquisition. The excess of the acquisition cost over the fair value of net tangible and intangible assets acquired resulted in the recognition of $1.16 billion of goodwill. Other acquisition-related intangible assets recorded in connection with the Chittenden acquisition totaled $292.9 million at January1, 2008. Net deferred tax liabilities totaling $135.4 million were established in connection with the recording of intangible assets (other than goodwill) and other purchase accounting adjustments. On January1, 2009, the separate bank charters of the six former Chittenden banks, all previously wholly-owned subsidiaries of Peoples United Bank, were consolidated into Peoples United Bank. Chittenden Trust Company based in Burlington, Vermont; Flagship Bank and Trust Company based in Worcester, Massachusetts; Maine Bank Trust based in Portland, Maine; Merrill Merchants Bank based in Bangor, Maine; Ocean Bank based in Portsmouth, New Hampshire; and The Bank of Western Massachusetts based in Springfield, Massachusetts, continue to do business under their existing names as divisions of Peoples United Bank.

Cash and Short-Term Investments

Cash and Short-Term Investments
	12 Months Ended Dec. 31, 2009 USD / shares
Cash and Short-Term Investments	NOTE 4Cash and Short-Term Investments Reserves in the form of deposits with the Federal Reserve Bank and vault cash totaling $159.0 million and $156.8 million at December31, 2009 and 2008, respectively, were maintained to satisfy federal regulatory requirements. These amounts are included in cash and due from banks in the Consolidated Statements of Condition. Short-term investments consist of the following cash equivalents: As of December31 (in millions) 2009 2008 Interest-earning deposits at the Federal Reserve Bank of New York $ 3,064.1 $ 759.6 GSE debt securities 12.0 110.0 Federal funds sold 4.1 208.9 Money market mutual funds 5.9 54.2 Other 5.9 6.1 Total short-term investments $ 3,092.0 $ 1,138.8 In the fourth quarter of 2008, the Federal Reserve began paying interest on both required reserves and excess cash balances on deposit at the Federal Reserve. For Peoples United Bank, such deposits are an alternative to overnight federal funds sold and had a yield of 0.25% at both December31, 2009 and 2008. Also included in short-term investments are GSE debt securities with maturities of 90 days or less. Given the short duration of these securities, they are held to maturity and carried at amortized cost, which approximates fair value. These securities, which carry the implicit backing of the U.S. government but are not direct obligations of the U.S. government, had a weighted average yield of 0.07% at December31, 2009 and 0.44% at December31, 2008.

Securities

Securities
	12 Months Ended Dec. 31, 2009 USD / shares
Securities	NOTE 5Securities The amortized cost, gross unrealized gains and losses, and fair value of Peoples United Financials securities are as follows: As of December31, 2009 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading account securities $ 75.7 $ $ $ 75.7 Securities available for sale: Debt securities: U.S. Treasury and agency 10.7 0.1 10.8 GSE residential mortgage-backed securities 729.9 2.6 (4.4 ) 728.1 State and municipal 0.3 0.3 Total debt securities 740.9 2.7 (4.4 ) 739.2 Equity securities 0.5 0.5 Total securities available for sale 741.4 2.7 (4.4 ) 739.7 Securities held to maturity: Debt securities: Corporate 55.0 55.0 Other 0.3 0.3 Total securities held to maturity 55.3 55.3 FHLB stock 31.1 31.1 Total securities $ 903.5 $ 2.7 $ (4.4 ) $ 901.8 As of December31, 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 Securities available for sale (in both 2009 and 2008) and GSE debt securities classified as short-term investments (in 2008), with a combined fair value of $606.8 million and $622.1 million at December31, 2009 and 2008, respectively, were pledged as collateral for public deposits and for other purposes. Dividend income on FHLB stock totaled $1.3 million and $1.4 million for the years ended December31, 2008 and 2007, respectively (none in 2009, see Note 1). The following table is a summary of the amortized cost, fair value and fully taxable equivalent (FTE) yield of debt securities. Information is based on remaining period to contractual maturity for categories other than mortgage-backed securities: As of December31, 2009 (dollars in

Loans

Loans
	12 Months Ended Dec. 31, 2009 USD / shares
Loans	NOTE 6Loans The following table summarizes Peoples United Financials loan portfolio: As of December31 (in millions) 2009 2008 NewEngland Other Total NewEngland Other Total Commercial real estate $ 4,434.7 $ 964.7 $ 5,399.4 $ 4,237.6 $ 729.7 $ 4,967.3 Commercial 2,426.2 1,616.3 4,042.5 2,494.8 1,731.6 4,226.4 Residential mortgage 2,445.8 101.1 2,546.9 3,004.5 140.1 3,144.6 Consumer 2,228.0 17.0 2,245.0 2,215.4 12.0 2,227.4 Total loans $ 11,534.7 $ 2,699.1 $ 14,233.8 $ 11,952.3 $ 2,613.4 $ 14,565.7 Peoples United Financials loan portfolio is primarily concentrated within New England with approximately 81% and 82% of the total loan portfolio involving customers within New England at December31, 2009 and 2008, respectively. Substantially all (approximately 96% at December31, 2009 and 2008) of the equipment financing activities of PCLC, which is included in commercial, involves customers outside of New England. Approximately 33% of PCLCs loans at December31, 2009 were to customers located in California, Texas and Florida. No other state exposure was greater than 5%. PCLC loans and leases totaled $1.2 billion at December31, 2009 and 2008. Commercial real estate loans include construction loans totaling $812.4 million and $902.3 million at December31, 2009 and 2008, respectively, net of the unadvanced portion of such loans totaling $177.0 million and $338.2 million, respectively. One-to-four family residential mortgage loans totaled $2.5 billion and $3.1 billion at December31, 2009 and 2008, respectively. At December31, 2009, the portfolio included $1.0 billion of interest-only loans of which $112.7 million are stated income loans, compared to $1.4 billion and $135.3 million, respectively, at December31, 2008. Peoples United Financials underwriting guidelines and requirements for such loans are generally more restrictive than those applied to other types of residential mortgage products. Also included in residential mortgage loans are construction loans totaling $65.4 million and $96.8 million at December31, 2009 and 2008, respectively, net of the unadvanced portion of such loans totaling $9.5 million and $13.5 million, respectively. Peoples United Financial continues to sell essentially all of its newly-originated residential mortgage loans in the secondary market, without recourse. Net gains on sales of residential mortgage loans totaled $13.9 million, $6.5 million and $3.0 million for the years ended December31, 2009, 2008 and 2007, respectively. Residential mortgage loans at December31, 2009 and 2008 included loans held for sale (substantially all to be sold servicing released) of $71.3 million and $31.7 million, respectively, which approximate fair value. At December31, 2009 and 2008, respectively, the consumer loan portfolio included $2.0 billion and $1.9 billion of home equity loans and $207.3 million and $224.8 million of indirect auto loans. Net deferred loan costs th

Premises and Equipment

Premises and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Premises and Equipment	NOTE 7Premises and Equipment The components of premises and equipment are summarized below: As of December31 (in millions) 2009 2008 Land $ 37.9 $ 38.6 Buildings 258.5 246.8 Leasehold improvements 63.8 63.1 Furniture and equipment 298.3 288.2 Total 658.5 636.7 Less accumulated depreciation and amortization 394.0 374.3 Total premises and equipment, net $ 264.5 $ 262.4 Depreciation and amortization expense included in occupancy and equipment expense in the Consolidated Statements of Income totaled $32.8 million, $31.7 million and $18.4 million for the years ended December31, 2009, 2008 and 2007, respectively. In 2009, Peoples United Financial sold two of its branch offices, one located in Vermont and the other in Massachusetts. Included in the sales were approximately $10.0 million in deposits and $0.5 million of fixed assets. Peoples United Financial recorded a total gain on sale of $1.4 million that is included in other non-interest income in the Consolidated Statements of Income. In 2008, Peoples United Financial sold a portion of its non-branch properties located in Bridgeport, Connecticut with a carrying amount of $9.0 million, and recognized a loss on sale of $0.8 million that is included in other non-interest expense in the Consolidated Statements of Income. Also in 2008, Peoples United Financial sold two of its branch offices located in New Hampshire. Included in the sales were approximately $24.0 million in deposits and $1.4 million of fixed assets. Peoples United Financial recorded a total gain on sale of $1.4 million that is included in other non-interest income in the Consolidated Statements of Income.

Goodwill and Other Acquisition-

Goodwill and Other Acquisition-Related Intangibles
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Acquisition-Related Intangibles	NOTE 8Goodwill and Other Acquisition-Related Intangibles Goodwill The following is a summary of Peoples United Financials goodwill allocated by business segment: As of December31 (in millions) 2009 2008 Business Segment: Commercial Banking $ 616.9 $ 616.9 Retail Banking and Small Business 595.0 595.0 Wealth Management 49.8 49.8 Total goodwill $ 1,261.7 $ 1,261.7 Other Acquisition-Related Intangibles The following is a summary of Peoples United Financials other acquisition-related intangibles: As of December31 (in millions) 2009 2008 Gross Amount Accumulated Amortization Carrying Amount Gross Amount Accumulated Amortization Carrying Amount Intangibles amortized: Core deposit intangible $ 124.1 $ 33.5 $ 90.6 $ 124.1 $ 17.1 $ 107.0 Trust relationships 42.7 5.7 37.0 42.7 2.8 39.9 Insurance relationships 31.5 28.3 3.2 31.5 27.0 4.5 Total $ 198.3 $ 67.5 130.8 $ 198.3 $ 46.9 151.4 Trade name intangible (not amortized) 122.7 122.7 Total other acquisition-related intangibles $ 253.5 $ 274.1 Other acquisition-related intangible assets subject to amortization have an original weighted-average amortization period of 11 years. Amortization expense of other acquisition-related intangible assets subject to amortization totaled $20.6 million, $21.3 million and $1.0 million for the years ended December31, 2009, 2008 and 2007, respectively, and is included in other non-interest expense in the Consolidated Statements of Income. The estimated aggregate amortization expense for each of the next five years is as follows: $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.

Other Assets

Other Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Other Assets	NOTE 9Other Assets Selected components of other assets are as follows: As of December31 (in millions) 2009 2008 Leased equipment $ 74.3 $ 60.4 Prepaid FDIC assessment (1) 68.9 Pension and other retirement benefits (note 18) 68.0 10.5 Accrued interest receivable 54.9 55.7 Economic development investments (note 13) 42.2 39.4 Receivables arising from securities brokerage and insurance businesses 37.4 33.4 Other real estate owned: Commercial 22.1 7.7 Residential 4.6 3.0 Repossessed assets 12.9 2.4 Other receivables (2) 12.3 28.8 Fair value of derivative financial instruments (note 20) 10.0 54.1 (1) Represents estimated deposit insurance premiums for 2010, 2011 and 2012 assessed in December 2009 in accordance with FDIC regulations. (2) Includes $1.0 million and $14.3 million at December31, 2009 and 2008, respectively, related to the sale of mortgage servicing rights.

Deposits

Deposits
	12 Months Ended Dec. 31, 2009 USD / shares
Deposits	NOTE 10Deposits The following is an analysis of Peoples United Financials total deposits by product type: As of December31 (dollars in millions) 2009 2008 Amount Weighted AverageRate Amount Weighted AverageRate Non-interest-bearing $ 3,509.0 % $ 3,173.4 % Savings, interest-bearing checking and money market 7,327.9 0.65 6,214.7 1.01 Total 10,836.9 0.44 9,388.1 0.67 Time deposits maturing: Within 6 months 2,244.3 1.60 2,147.1 2.60 After 6 months but within 1 year 1,441.9 1.67 2,266.1 3.35 After 1 but within 2 years 757.1 1.90 325.2 2.99 After 2 but within 3 years 78.2 2.80 63.8 3.46 After 3 years 87.2 3.16 79.1 3.71 Total 4,608.7 1.72 4,881.3 3.00 Total deposits $ 15,445.6 0.82 % $ 14,269.4 1.47 % Time deposits issued in amounts of $100,000 or more totaled $1.5 billion and $1.4 billion at December31, 2009 and 2008, respectively. Non-interest-bearing deposit overdrafts totaling $4.3 million and $15.3 million at December31, 2009 and 2008, respectively, have been classified as loans. Interest expense on deposits is summarized as follows: Years ended December31 (in millions) 2009 2008 2007 Savings, interest-bearing checking and money market $ 48.2 $ 78.5 $ 47.5 Time 125.2 183.6 166.1 Total interest expense $ 173.4 $ 262.1 $ 213.6

Borrowings

Borrowings
	12 Months Ended Dec. 31, 2009 USD / shares
Borrowings	NOTE 11Borrowings Peoples United Financials borrowings are as follows: As of December31 (dollars in millions) 2009 2008 Amount Weighted AverageRate Amount Weighted AverageRate Repurchase agreements maturing within 1 month $ 144.1 0.48 % $ 156.7 0.69 % Fixed rate FHLB advances maturing: Within 1 year 7.7 3.98 After 1 but within 2 years 1.7 3.97 8.3 3.93 After 2 but within 3 years 1.8 3.96 After 5 years 5.4 2.04 5.0 2.14 Total FHLB advances 14.8 3.28 15.1 3.34 Other 16.1 2.52 Total borrowings $ 158.9 0.74 % $ 187.9 1.06 % At December31, 2009, Peoples United Banks total borrowing limit from the FHLB and Federal Reserve Bank of New York for advances and repurchase agreements was $2.3 billion, based on the level of qualifying collateral available for these borrowings. In addition, Peoples United Bank had unsecured borrowing capacity of $0.5 billion at that date. FHLB advances are secured by Peoples United Banks investment in FHLB stock and by a blanket security agreement that requires Peoples United Bank to maintain, as collateral, sufficient qualifying assets not otherwise pledged (principally single-family residential mortgage loans, home equity lines of credit and loans, and commercial real estate loans). Interest expense on borrowings consists of the following: Years ended December31 (in millions) 2009 2008 2007 FHLB advances $ 0.8 $ 0.8 $ Repurchase agreements 0.7 2.1 Federal funds purchased 0.2 Other 0.6 Total interest expense $ 1.5 $ 3.5 $ 0.2 Information concerning Peoples United Financials borrowings is presented below: As of and for the years ended December31 (dollars in millions) 2009 2008 2007 Repurchase agreements: Balance at year end $ 144.1 $ 156.7 $ Carrying amount of collateral securities at year end 151.3 165.2 Average outstanding during the year 151.2 123.0 Maximum outstanding at any month end 173.1 167.4 Average interest rate during the year 0.46 % 1.72 % % FHLB advances: Balance at year end $ 14.8 $ 15.1 $ Average outstanding during the year 14.8 16.2 0.1 Maximum outstanding at any month end 15.0 20.2 0.8 Average interest rate during the year 5.28 % 5.16 % 5.04 % Federal funds purchased: Balance at year end $ $ $ Average outstanding during the year 3.3 Maximum outstanding at any month end 9.7 Average interest rate during the year % % 5.23 %

Subordinated Notes

Subordinated Notes
	12 Months Ended Dec. 31, 2009 USD / shares
Subordinated Notes	NOTE 12Subordinated Notes Subordinated notes are summarized as follows: As of December31 (in millions) 2009 2008 Peoples United Financial: 5.80% fixed rate/floating rate subordinated notes due 2017 $ 116.2 $ 115.0 Peoples United Bank: 9.875% fixed rate subordinated notes due 2010 65.6 65.5 Total subordinated notes $ 181.8 $ 180.5 Peoples United Financial assumed the 5.80% subordinated notes in connection with the Chittenden acquisition. These subordinated notes, which were issued in February 2007, represent unsecured general obligations of Peoples United Financial with interest payable semi-annually. The notes have a coupon of 5.80% for the first five years and convert to a variable rate in year six that is tied to the three month LIBOR plus 68.5 basis points. Beginning February14, 2012, Peoples United Financial has the option to redeem some or all of the notes. The 9.875% subordinated notes represent unsecured general obligations of Peoples United Bank with interest payable semi-annually; are subordinated to the claims of depositors and Peoples United Banks other creditors; and are not redeemable prior to maturity (November 15, 2010) without prior approval of the OTS.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	NOTE 13Income Taxes The following is a summary of total income tax expense: Years ended December31 (in millions) 2009 2008 2007 Income tax expense applicable to: Continuing operations $ 43.1 $ 67.0 $ 75.5 Discontinued operations 0.8 Total income tax expense $ 43.1 $ 67.0 $ 76.3 Income tax (benefit) expense applicable to items reported in other comprehensive income $ (1.0 ) $ (31.1 ) $ 15.9 The components of income tax expense applicable to pre-tax income from continuing operations are summarized in the following table. State income tax expense for the years ended December31, 2009 and 2008 reflects Peoples United Financials expanded geographic franchise following the acquisition of Chittenden. The income tax effects related to items recognized in other comprehensive income (loss) are described in Note 17. Years ended December31 (in millions) 2009 2008 2007 Current tax expense: Federal $ 57.1 $ 76.7 $ 81.1 State 0.6 5.7 0.1 Total current tax expense 57.7 82.4 81.2 Deferred tax benefit (1) (14.6 ) (15.4 ) (5.7 ) Total income tax expense $ 43.1 $ 67.0 $ 75.5 (1) Includes the effect of increases (decreases) in the valuation allowance for state deferred tax assets of $13.5 million, $(4.8) million, and $4.0 million in 2009, 2008 and 2007, respectively. The following is a reconciliation of expected income tax expense, computed at the U.S. federal statutory rate of 35%, to actual income tax expense from continuing operations: Years ended December31 (dollars in millions) 2009 2008 2007 Expected income tax expense $ 50.5 $ 71.7 $ 78.7 Federal income tax credits (1) (4.2 ) (4.0 ) Tax-exempt interest (3.3 ) (3.4 ) (0.4 ) Income from bank-owned life insurance (2.9 ) (3.7 ) (3.7 ) State income tax, net of federal tax effect (2) (0.3 ) 3.7 0.1 Other, net 3.3 2.7 0.8 Actual income tax expense $ 43.1 $ 67.0 $ 75.5 Effective income tax rate 29.9 % 32.7 % 33.6 % (1) In connection with the acquisition of Chittenden, Peoples United Financial acquired $25 million of limited partnership investments to develop and operate affordable housing units for lower income tenants throughout New England. The cost of these investments is amortized on a straight-line basis over the period during which the related federal income tax credits are realized (generally ten years). (2) Reflects a $2.0 million deferred tax benefit in 2009 due to a reduction in the combined state income tax rate following the charter consolidations of the former Chittenden banks (see Note 3). In 1998, Peoples Uni

Stockholders' Equity and Divide

Stockholders' Equity and Dividends
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity and Dividends	NOTE 14Stockholders Equity and Dividends Peoples United Financial, Inc. is authorized to issue 50million shares of preferred stock, par value of $0.01 per share, none of which were outstanding as of December31, 2009, and 1.95 billion shares of common stock, par value of $0.01 per share, of which 348.2million shares were issued as of December31, 2009. In April 2007, Peoples United Financial established an Employee Stock Ownership Plan (the ESOP) (see Note 18). At the time, Peoples United Financial loaned the ESOP $216.8 million to purchase 10.5million shares of Peoples United Financial common stock in the open market. Shares of Peoples United Financial common stock are held by the ESOP and allocated to eligible participants annually based upon a percentage of each participants eligible compensation. At December31, 2009, a total of 9.4million shares of Peoples United Financial common stock, with a contra-equity balance of $195.2 million, have not been allocated or committed to be released. In conjunction with establishing the Peoples United Financial, Inc. 2007 Recognition and Retention Plan (the RRP) in October 2007 (see Note 19), a trustee purchased 7.0million shares of Peoples United Financial common stock in the open market with funds provided by Peoples United Financial. At December31, 2009, 3.2million shares, which have been classified as treasury stock in the Consolidated Statements of Condition, were available to be awarded in the form of restricted stock under the provisions of the RRP. In April 2008, Peoples United Financials Board of Directors approved a stock repurchase program. Under the program, up to 5% of Peoples United Financials then-outstanding common stock, or up to 17.3million shares, could be repurchased, either directly or through agents, in the open market at prices and terms satisfactory to management. As of December31, 2009, no shares had been repurchased under this program. Dividends declared and paid per common share (other than shares on which Peoples Mutual Holdings waived receipt of dividends prior to completing the second-step conversion in April 2007) totaled $0.61, $0.58 and $0.52 for the years ended December31, 2009, 2008 and 2007, respectively. Peoples United Financials dividend payout ratio (dividends paid as a percentage of net income) for the years ended December31, 2009, 2008 and 2007 was 201.1%, 141.1% and 87.0%, respectively. As a federally-chartered stock savings bank, Peoples United Banks ability to make capital distributions directly or indirectly to its shareholder, such as cash dividends, is governed by OTS regulations. As the subsidiary of a savings and loan holding company, Peoples United Bank currently must file a notice with the OTS at least 30 days prior to each capital distribution. However, if the total amount of all capital distributions (including any proposed capital distribution) for the applicable calendar year exceeds net income (as determined under generally accepted accounting principles) for that year to date plus the retained net income for the preceding two years, then Peoples United Bank must file an application to receive the approval of the OTS for a propo

Regulatory Capital Requirements

Regulatory Capital Requirements
	12 Months Ended Dec. 31, 2009 USD / shares
Regulatory Capital Requirements	NOTE 15Regulatory Capital Requirements OTS regulations require federally-chartered savings banks to meet three minimum capital ratios: (i)a tangible capital ratio of 1.5% (calculated as tangible capital to adjusted total assets); (ii)a leverage (core) capital ratio of 4.0% (calculated as core capital to adjusted total assets); and (iii)a total risk-based capital ratio of 8.0% (calculated as total risk-based capital to total risk-weighted assets). Under its prompt corrective action regulations, the OTS is required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized bank. These actions could have a direct material effect on a banks financial statements. The regulations establish a framework for the classification of banks into five categories: well-capitalized, adequately-capitalized, undercapitalized, significantly-undercapitalized and critically-undercapitalized. Generally, a bank is considered well-capitalized if it has a leverage (core) capital ratio of at least 5.0%, a tier 1 risk-based capital ratio of at least 6.0% (calculated as tier 1 capital to total risk-weighted assets) and a total risk-based capital ratio of at least 10.0%. The foregoing capital ratios are based in part on specific quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting guidelines. Capital amounts and classifications are also subject to qualitative judgments by the OTS about capital components, risk weightings and other factors. Management believes that, as of December31, 2009 and 2008, Peoples United Bank met all capital adequacy requirements to which it is subject. Further, the most recent regulatory notification categorized Peoples United Bank as a well-capitalized institution under the prompt corrective action regulations. No conditions or events have occurred since that notification that have caused management to believe any change in Peoples United Banks capital classification would be warranted. The following summary compares Peoples United Banks regulatory capital amounts and ratios as of December31, 2009 and 2008 to the OTS requirements for classification as a well-capitalized institution and for minimum capital adequacy. At December31, 2009 and 2008, Peoples United Banks adjusted total assets, as defined, totaled $19.5 billion and $18.0 billion, respectively, and its total risk-weighted assets, as defined, totaled $14.9 billion and $14.7 billion, respectively. Regulatory capital amounts and ratios presented are for Peoples United Bank and therefore do not reflect the additional capital residing at Peoples United Financial. (dollars in millions) PeoplesUnitedBank OTS Requirements Classification as Well-Capitalized Minimum Capital Adequacy Amount Ratio Amount Ratio Amount Ratio As of December31, 2009 Tangible capital $ 1,948.2 (1) 10.0 % n/a n/a $ 291.8 1.5 % Leverage (core) capital 1,948.2 (1) 10.0 $ 972.8 5.0 % 778.2 4.0 Risk-based capital:

Earnings Per Common Share

Earnings Per Common Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Common Share	NOTE 16Earnings Per Common Share The following is an analysis of Peoples United Financials basic and diluted EPS, reflecting the application of the two-class method, as described in Note 1: Years ended December31 (in millions, except per share data) 2009 2008 2007 Income from continuing operations $ 101.2 $ 137.8 $ 149.2 Income from discontinued operations 1.5 Net income 101.2 137.8 150.7 Dividends paid on participating securities (1.8 ) (2.0 ) (0.4 ) Income attributable to common shareholders $ 99.4 $ 135.8 $ 150.3 Average common shares outstanding for basic EPS 332.0 329.3 290.8 Effect of dilutive equity-based awards 0.3 0.8 1.3 Average common and common-equivalent shares for diluted EPS 332.3 330.1 292.1 Basic EPS: Income from continuing operations $ 0.30 $ 0.41 $ 0.52 Net income 0.30 0.41 0.52 Diluted EPS: Income from continuing operations $ 0.30 $ 0.41 $ 0.52 Net income 0.30 0.41 0.52 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 for 2009, 2008 and 2007. A total of 9.8million, 9.3million and 10.3million anti-dilutive equity-based awards were excluded from the calculation of diluted EPS for the years ended December31, 2009, 2008 and 2007, respectively.

Comprehensive Income

Comprehensive Income
	12 Months Ended Dec. 31, 2009 USD / shares
Comprehensive Income	NOTE 17Comprehensive 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 2009, 2008 and 2007 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: As of December31 (in millions) 2009 2008 2007 Net actuarial loss and other amounts related to pension and other postretirement benefit plans $ (87.6 ) $ (106.0 ) $ (27.3 ) Net gain on derivatives accounted for as cash flow hedges 13.9 26.8 8.6 Net unrealized (loss) gain on securities available for sale (1.1 ) 3.8 0.1 Total accumulated other comprehensive loss $ (74.8 ) $ (75.4 ) $ (18.6 ) The following is a summary of the components of Peoples United Financials other comprehensive income (loss): Year ended December31, 2009 (in millions) Pre-Tax Amount TaxEffect After-Tax Amount Net actuarial gain or loss on pension plans and other postretirement benefits: Net actuarial gain adjustment arising during the year $ 12.9 $ (3.9 ) $ 9.0 Reclassification adjustment for net actuarial loss included in net income 6.6 (2.0 ) 4.6 Net actuarial gain 19.5 (5.9 ) 13.6 Prior service credit on pension plans and other postretirement benefits: Prior service credit adjustment arising during the year 6.9 (2.1 ) 4.8 Reclassification adjustment for prior service credit included in net income (0.4 ) 0.1 (0.3 ) Prior service credit 6.5 (2.0 ) 4.5 Transition obligation on other postretirement benefits: Reclassification adjustment for transition obligation on other postretirement benefits included in net income 0.4 (0.1 ) 0.3 Net actuarial gain, prior service credit and transition obligation 26.4 (8.0 ) 18.4 Net unrealized gains and losses on securities available for sale: Net unrealized holding gains arising during the year 9.2 (3.0 ) 6.2 Reclassification adjustment for net realized gains included in net income (16.4 ) 5.3 (11.1 ) Net unrealized losses (7.2 ) 2.3

Employee Benefit Plans

Employee Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefit Plans	NOTE 18Employee Benefit Plans Peoples United Financial Employee Pension and Other Postretirement Benefits Plans Peoples United Financial maintains a qualified noncontributory defined benefit pension plan that covers substantially all full-time and part-time employees who meet certain age and length of service requirements and who were employed by Peoples United Bank prior to August14, 2006. Benefits are based upon the employees years of credited service and either the average compensation for the last five years or the average compensation for the five consecutive years of the last ten years that produce the highest average. New employees of Peoples United Bank starting on or after August14, 2006 are not eligible to participate in the defined benefit pension plan. Instead, Peoples United Financial makes contributions on behalf of these employees to a qualified defined contribution plan in an annual amount equal to 3% of the covered employees eligible compensation. Employee participation in this plan is restricted to employees who are at least 21 years of age and worked at least 1,000 hours in a year. Both full-time and part-time employees are eligible to participate as long as they meet these requirements. In addition, Peoples United Financial maintains (i)unfunded, nonqualified supplemental plans to provide retirement benefits to certain senior officers and (ii)an unfunded plan that provides retirees with optional medical, dental and life insurance benefits (other postretirement benefits). Peoples United Financial accrues the cost of these postretirement benefits over the employees years of service to the date of their eligibility for such benefits. An employer is required to recognize an asset or a liability for the funded status of pension and other postretirement benefit plans. The funded status is measured as the difference between the fair value of plan assets and the applicable benefit obligation, which is the projected benefit obligation for a pension plan and the accumulated postretirement benefit obligation for an other postretirement benefit plan. Plan assets and benefit obligations are required to be measured as of the date of the employers fiscal year-end, effective for fiscal years ending after December15, 2008. Therefore, in 2008, Peoples United Financial changed its pension plan measurement date and performed a measurement of plan assets and benefit obligations as of January1, 2008. The net periodic benefit cost for the period between the measurement date used for purposes of 2007 year-end reporting (September 30, 2007) and December31, 2007 was recorded as an adjustment, net of tax, to the opening balance of retained earnings as of January1, 2008. Other changes in the fair value of plan assets and the benefit obligations for the period between September30, 2007 and December31, 2007 were recognized, net of tax, as a separate adjustment to the opening balance of accumulated other comprehensive loss as of January1, 2008. Application of these transition provisions on January1, 2008 resulted in Peoples United Financial recording a pre-tax reduction in retained earnings of $0.4 million ($0.3 million net of tax)

Stock-Based Compensation Plans

Stock-Based Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation Plans	NOTE 19Stock-Based Compensation Plans Long-Term Incentive Plan Peoples United Financials 2008 Long-Term Incentive Plan (the 2008 Incentive Plan) and the predecessor 1998 Long-Term Incentive Plan (the 1998 Incentive Plan) (together the Incentive Plans) provide for awards to officers and employees in the form of: (i)incentive stock options that may afford tax benefits to recipients; (ii)non-statutory stock options that do not afford tax benefits to recipients but may provide tax benefits to Peoples United Financial; and (iii)stock appreciation rights, restricted stock and performance units. A total of 10,000,000 shares of Peoples United Financial common stock are reserved for issuance under the 2008 Incentive Plan. At December31, 2009, a total of 8,793,414 reserved shares remain available for future awards. Non-statutory stock options have been granted under the Incentive Plans at exercise prices equal to the fair value of Peoples United Financial common stock at the grant dates. Option expiration dates are fixed at the grant date, with a maximum term of ten years. Options granted under the Incentive Plans generally vest 50% after two years, 75% after three years and 100% after four years. All options become fully exercisable in the event of a change of control, as defined in the Incentive Plans. Peoples United Financial has also granted restricted stock awards under the Incentive Plans. Employees become fully vested in these shares generally after a three- or four-year period, with requisite service conditions and no performance-based conditions to such vesting. Unvested restricted stock awards become fully vested in the event of a change in control, as defined in the Incentive Plans. During the vesting period, dividends are paid on the restricted stock and the recipients are entitled to vote these restricted shares. The fair value of all restricted stock awards is measured at the grant date based on quoted market prices. Recognition and Retention Plan and Stock Option Plan The Peoples United Financial 2007 Recognition and Retention Plan and 2007 Stock Option Plan (together the 2007 Plans) provide for awards to directors, officers and employees in the form of (i)incentive stock options that may afford tax benefits to recipients, (ii)non-statutory stock options that do not afford tax benefits to recipients but may provide tax benefits to Peoples United Financial, and (iii)restricted stock. Shares of Peoples United Financial common stock were purchased in the open market in October 2007 by a trustee with funds provided by Peoples United Financial for the maximum number of shares available to be awarded in the form of restricted stock. A maximum of 6,969,050 shares and 15,244,796 shares of Peoples United Financial common stock are available for restricted stock awards and stock options, respectively. At December31, 2009, a total of 3,211,388 shares and 6,075,530 shares remain available for future restricted stock awards and stock options, respectively, under the 2007 Plans. Non-statutory stock options are granted under the 2007 Plans at exercise prices equal to the fair value of Peoples United Financials common stock at t

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements	NOTE 20Fair Value Measurements Described below are the valuation methodologies used by Peoples United Financial and the resulting fair value measurements of those financial instruments reported at fair value on both a recurring and non-recurring basis. Recurring Fair Value Measurements Investments in Debt and Equity Securities When available, Peoples United Financial uses quoted market prices for identical securities, received from a third party nationally recognized pricing service, to determine the fair value of investment securities such as U.S. Treasury and agency securities that are included in Level 1. When quoted market prices for identical securities are unavailable, Peoples United Financial uses prices provided by the independent pricing service based on recent trading activity and other observable information including, but not limited to, market interest rate curves, referenced credit spreads and estimated prepayment rates where applicable. These investments include corporate and municipal debt securities, and government agency-issued mortgage-backed securities, all of which are included in Level 2. With respect to mortgage-backed securities, Peoples United Financial held GNMA residential mortgage-backed securities with a fair value of $333 million at December31, 2008 (none at December31, 2009). While such securities are backed by the full faith and credit of the U.S. government and, as a result, present no credit risk, they have been classified as Level 2 assets due to the method used in determining their fair value. The remaining residential mortgage-backed securities held by Peoples United Financial at December31, 2008 and all such securities at December31, 2009 were issued by other GSEs and are also included in Level 2. Derivatives Peoples United Financial values its derivatives using internal models that are based on market or observable inputs including interest rate curves and forward/spot prices for selected currencies. Derivative assets and liabilities included in Level 2 represent interest rate swaps, foreign exchange contracts, interest rate-lock commitments on residential mortgage loans, and forward commitments to sell residential mortgage loans. The following tables summarize Peoples United Financials assets and liabilities measured at fair value on a recurring basis (see Note 1): FairValueMeasurementsUsing Total As of December31, 2009 (in millions) Level1 Level2 Level3 Assets: Trading account securities $ 75.7 $ $ $ 75.7 Securities available for sale: U.S. Treasury and agency 10.8 10.8 GSE residential mortgage-backed securities 728.1 728.1 State and municipal 0.3 0.3 Equity securities 0.5 0.5 Interest rate swaps 9.6 9.6 Foreign exchange contracts 0.1 0.1 Interest rate-lock commitments on residential mortgage loans 0.3 0.3 Total $ 86.5 $ 738.9 $ $ 825.4 Liabilities:

Legal Proceedings and Lease Com

Legal Proceedings and Lease Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Legal Proceedings and Lease Commitments	NOTE 21Legal Proceedings and Lease Commitments 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. Legal Proceedings On April21, 2008, Peoples United Bank was served with a complaint naming it as a defendant in a lawsuit filed by a group of individuals in Connecticut Superior Court. The plaintiffs, who state that they are customers of Peoples United Bank, claim to have suffered damages as a result of Peoples United Banks alleged failure to safeguard the plaintiffs financial and personal information. The plaintiffs moved for certification of the case as a class action on behalf of themselves and all Peoples United Bank customers who are similarly situated. The plaintiffs withdrew their complaint on November 12, 2009. On May23, 2008, Peoples United Bank was served with a complaint naming it as a defendant in a lawsuit filed by a group of individuals in Connecticut Superior Court. The complaint, which also names BNY Mellon LLC as a defendant, alleges that the plaintiffs were damaged by BNY Mellons loss of unencrypted electronic data including personal information about the plaintiffs. BNY Mellon served as the conversion agent in connection with the second-step conversion in 2007, pursuant to which Peoples United Bank became a wholly-owned subsidiary of Peoples United Financial. The plaintiffs moved for certification of the case as a class action on behalf of themselves and all Peoples United Bank customers who are similarly situated. The case was removed from state court to the United States District Court for the District of Connecticut. On August 31, 2009, the court granted Peoples United Banks motion to dismiss the lawsuit. In the normal course of business, Peoples United Financial is also subject to various other 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 these legal proceedings. Lease Commitments At December31, 2009, Peoples United Financial was obligated under various noncancelable operating leases for office space, which expire on various dates through 2032. Certain leases contain renewal options and provide for increased rentals based principally on the consumer price index and fair market rental value provisions. The future minimum rental commitments under operating leases in excess of one year at December31, 2009 were: $29.3 million in 2010; $27.9 million in 2011; $18.7 million in 2012; $15.8 million in 2013; $13.8 million in 2014; and an aggregate of $61.2 million in 2015 through 2032. Rent expense under operating leases totaled $30.7 million, $31.0 million and $20.6 million for the years ended December31, 2009, 2008 and 2007, respectively.

Financial Instruments

Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Instruments	NOTE 22Financial Instruments In the normal course of business, Peoples United Financial is a party to both on-balance-sheet and off-balance-sheet financial instruments involving, to varying degrees, elements of credit risk and interest rate risk in addition to the amounts recognized in the Consolidated Statements of Condition. The contractual amounts of off-balance-sheet instruments reflect the extent of Peoples United Financials involvement in particular classes of financial instruments. A summary of the contractual or notional amounts of Peoples United Financials financial instruments follows: As of December31 (in millions) 2009 2008 Lending-Related Financial Instruments: (1) Loan origination commitments and unadvanced lines of credit: Consumer $ 1,913.3 $ 2,721.2 Commercial 1,652.3 1,690.8 Commercial real estate 419.7 637.1 Residential mortgage 113.3 136.0 Letters of credit 111.9 146.0 Derivative Financial Instruments: (2) Interest rate floors 600.0 Foreign exchange contracts 9.6 11.6 Interest rate swaps: For market risk management 6.0 6.4 For commercial customers: Customer 294.8 60.3 Counterparty 294.8 60.3 Forward commitments to sell residential mortgage loans 140.4 48.6 Interest rate-lock commitments on residential mortgage loans 141.4 49.8 (1) The contractual amounts of these financial instruments represent Peoples United Financials maximum potential exposure to credit loss, assuming (i)the instruments are fully funded at a later date, (ii)the borrower does not meet contractual repayment obligations, and (iii)any collateral or other security proves to be worthless. (2) The contractual or notional amounts of these financial instruments are substantially greater than Peoples United Financials maximum potential exposure to credit loss. Lending-Related Financial Instruments The contractual amounts of Peoples United Financial lending-related financial instruments do not necessarily represent future cash requirements since certain of these instruments may expire without being funded and others may not be fully drawn upon. These instruments are subject to Peoples United Financials credit approval process, including an evaluation of the customers creditworthiness and related collateral requirements. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee by the customer. The geographic distribution of Peoples United Financials lending-related financial instruments is similar to the distribution of its loan portfolio, as described in Note 6. Peoples United Financial issues both stand-by and commercial letters of credit. Stand-by letters of credit are conditional commitments issued by Peoples United Financial to guarantee the performance of a customer to a third party. The letter of credit is generally extended for an average term of one year and is secured in a manner similar to existing extensio

Business Segment Information

Business Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Business Segment Information	NOTE 23Business Segment Information Public companies are required to report (i)certain financial and descriptive information about reportable operating segments, as defined, and (ii)certain enterprise-wide financial information about products and services, geographic areas and major customers. Operating segment information is reported using a management approach that is based on the way management organizes the segments for purposes of making operating decisions and assessing performance. Peoples United Financials operations are divided into three primary business segments that represent its core businesses: Commercial Banking consists principally of commercial lending, commercial real estate lending, indirect auto lending, and commercial deposit gathering activities. This segment also includes the equipment financing operations of PCLC, as well as cash management, correspondent banking and municipal banking. Retail Banking and Small Business includes, as its principal business lines, consumer and small business deposit gathering activities, consumer lending (including residential mortgage and home equity), small business lending and merchant services. Wealth Management consists of trust services, corporate trust, brokerage, financial advisory services, investment management services and life insurance provided by Peoples Securities, and other insurance services provided through R.C. Knox and Chittenden Insurance Group, and private banking. In addition, the Treasury area is responsible for managing Peoples United Financials securities portfolio, short-term investments, wholesale borrowings, and the funding center. Peoples United Financials business segment disclosure is based on information generated by an internal profitability reporting system, which generates information by operating segment based on a series of management estimates and allocations regarding funds transfer pricing (FTP), the provision for loan losses, non-interest expense and income taxes. These estimates and allocations, some of which can be subjective in nature, are continually being reviewed and refined. Any changes in estimates and allocations that may affect the reported results of any business segment will not affect the consolidated financial position or results of operations of Peoples United Financial as a whole. All business segment results for prior years have been restated to conform to the current presentation, including reclassifications of (i)merchant services from the Commercial Banking segment to the Retail Banking and Small Business segment (effective in the fourth quarter of 2009) and (ii)corporate trust from the Commercial Banking segment to the Wealth Management segment (effective in the second quarter of 2009). FTP is used in the calculation of each operating segments net interest income, and measures the value of funds used in and provided by an operating segment. Under this process, a money desk buys funds from liability-generating business lines (such as consumer deposits) and sells funds to asset-generating business lines (such as commercial lending). The price at which funds are bought and sold on any given day is set

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations	NOTE 24Discontinued Operations On March5, 2004, Peoples United Financial completed the sale of its credit card business, which included $2.0 billion of credit card receivables, as well as the transfer of its related credit card operations and 420 employees, to The Royal Bank of Scotland Group. Peoples United Financial continues to generate recoveries from collection efforts on previously charged-off credit card accounts that were not included in the sale of the credit card business. Recoveries, net of collection costs, totaled $2.3 million for the year ended December31, 2007. Recoveries occurring subsequent to the sale and through December31, 2007 were included in income from discontinued operations in the Consolidated Statements of Income. Effective January1, 2008, income from discontinued operations is no longer disclosed separately in the Consolidated Statements of Income as the level of recoveries continues to decline due to the aging and diminishing pool of charged-off accounts.

Parent Company Financial Inform

Parent Company Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
Parent Company Financial Information	NOTE 25Parent Company Financial Information On April16, 2007, Peoples United Financial, Peoples United Bank and Peoples Mutual Holdings completed their second-step conversion from a mutual holding company structure to a fully-public stock holding company structure (see Note 2). Peoples United Financial had not engaged in any business through March31, 2007; accordingly, the financial information for 2007 covers the period from April16, 2007 through December31, 2007. The condensed financial information of Peoples United Financial (parent company only) is presented below: CONDENSED STATEMENTS OF CONDITION As of December31 (in millions) 2009 2008 Assets: Cash at bank subsidiary $ 4.2 $ 1,280.0 Securities purchased under agreements to resell 400.0 Securities available for sale, at fair value 764.9 Securities held to maturity, at amortized cost 55.0 Loan to bank subsidiary 1,374.0 Investments in subsidiaries: Bank subsidiary 3,212.8 3,083.1 Non-bank subsidiary 3.4 3.2 Goodwill 175.9 175.9 Other assets 16.3 28.4 Total assets $ 5,241.6 $ 5,335.5 Liabilities and Stockholders Equity: Subordinated notes $ 116.2 $ 115.0 Other liabilities 24.7 46.7 Stockholders equity 5,100.7 5,173.8 Total liabilities and stockholders equity $ 5,241.6 $ 5,335.5 CONDENSED STATEMENTS OF INCOME Years ended December31 (in millions) 2009 2008 Fortheperiod April16,2007through December31, 2007 Revenues: Interest income: Short-term investments $ 3.0 $ 13.8 $ 0.4 Securities purchased under agreements to resell 0.8 7.5 48.3 Securities 3.5 4.5 Loan to bank subsidiary 0.6 Total interest income 7.9 25.8 48.7 Dividends from bank subsidiary 1,800.0 206.0 Other non-interest income 0.3 0.1 0.1 Total revenues 8.2 1,825.9 254.8 Expenses: Interest on subordinated notes 8.5 8.5 Contribution to The Peoples United Community Foundation 60.0 Other non-interest expense 9.4 12.6 3.6 Total expenses 17.9 21.1 63.6 (Loss) income before income tax (benefit) expense and subsidiary undistributed income (distributions in excess of income) (9.7 ) 1,804.8 191.2 Income tax (benefit) expense (3.4 ) 1.7 (5.2 ) (Loss) income before subsidiary undistributed income (distributions in excess of income) (6.3 ) 1,803.1 196.4 Subsidiary undistributed income (distributions in excess of income) 107.5 (1,665.3 ) (45.7 ) Net income $ 101.2 $ 137.8 $ 150

Subsequent Event

Subsequent Event
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Event	NOTE 26Subsequent Event On February 19, 2010, Peoples United Financial completed its acquisition of Financial Federal Corporation (Financial Federal), a financial services company that provides collateralized lending, financing and leasing services nationwide to small and medium sized businesses. On the closing date, Financial Federal had total assets of $1.3 billion. Total consideration paid in the Financial Federal acquisition of approximately $699 million consisted of approximately $293 million in cash and 26.0million shares of Peoples United Financial common stock valued at approximately $406 million. Cash consideration was paid at the rate of $11.27 per share of Financial Federal common stock and stock consideration was paid at the rate of 1.0 shares of Peoples United Financial common stock per share of Financial Federal common stock. The acquisition will be accounted for as a purchase and, accordingly, Financial Federals assets and liabilities will be recorded by Peoples United Financial at their estimated fair values as of the closing date. Results of operations for Financial Federal will be included in the Consolidated Statements of Income beginning with the closing date.

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Selected Quarterly Financial Data (Unaudited)	NOTE 27Selected Quarterly Financial Data (Unaudited) The following table presents Peoples United Financials quarterly financial data for 2009 and 2008: 2009 2008 (in millions, except per share data) First (1) Second(1) Third Fourth First Second Third Fourth(1) Interest and dividend income $ 195.2 $ 192.2 $ 191.9 $ 187.5 $ 254.9 $ 227.5 $ 222.4 $ 212.4 Interest expense 52.4 51.0 46.6 40.0 88.6 70.5 62.6 59.1 Net interest income 142.8 141.2 145.3 147.5 166.3 157.0 159.8 153.3 Provision for loan losses 7.9 14.0 21.5 13.6 8.3 2.4 6.8 8.7 Net interest income after provision for loan losses 134.9 127.2 123.8 133.9 158.0 154.6 153.0 144.6 Non-interest income 72.2 85.0 80.2 71.7 82.3 73.4 74.2 73.7 Non-interest expense 171.1 176.2 165.1 172.2 219.2 162.9 158.7 168.2 Income before income tax expense 36.0 36.0 38.9 33.4 21.1 65.1 68.5 50.1 Income tax expense 11.8 10.7 12.1 8.5 6.0 22.1 22.5 16.4 Net income $ 24.2 $ 25.3 $ 26.8 $ 24.9 $ 15.1 $ 43.0 $ 46.0 $ 33.7 Basic earnings per common share (2) $ 0.07 $ 0.08 $ 0.08 $ 0.07 $ 0.05 $ 0.13 $ 0.14 $ 0.10 Diluted earnings per common share (2) 0.07 0.08 0.08 0.07 0.05 0.13 0.14 0.10 Average common shares outstanding: Basic 331.60 331.83 332.01 332.37 327.87 328.71 329.72 330.97 Diluted 332.17 332.33 332.19 332.56 328.87 329.51 330.28 331.50 Common stock price: High $ 18.18 $ 18.54 $ 17.41 $ 17.16 $ 18.25 $ 18.52 $ 21.76 $ 20.15 Low 15.61 14.72 14.84 15.15 14.29 15.52 13.92 14.75 Dividends paid 50.2 51.1 51.2 51.1 44.3 49.9 50.0 50.2 Dividends per share 0.15 0.1525 0.1525 0.1525 0.1333 0.15 0.15 0.15 Dividend payout ratio 207.3 % 202.0 % 191.3 % 204.7 % 293.0 % 116.1 % 108.7 % 149.1 % (1) See Note 1 for a discussion of an immaterial revision to previously-reported operating r

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 12, 2010	Jun. 30, 2009
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		348,570,676
Entity Public Float			$5,249,612,377