PBCT - Earnings call transcript Q3 2018 | People's United Financial, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the People's United Financial, Inc.

Third Quarter 2018 Earnings Conference Call. My name is Gege, and I will be your coordinator for today. At this time, all participants are in a listen-only mode.

Following the prepared remarks, there will be a question-and-answer session. now turn would to presentation I Mr. Instructions] like the to over [Operator Vice Relations of Financial, Hersom, President Andrew Senior Investor Inc. for United People's Please proceed, sir.

Andrew Hersom

thank us and for afternoon Good you today. joining

results review David Officer; Chief our Jeff remember Planning; Financial Corporate on which to to Please with Officer. Jeff Chief Walters, Rosato, the Here Kirk and to Jack Chairman peoples.com, and are on third slide me is of Accounting Hoyt, our turn Barnes, Development quarter statements Officer; Tengel, refer our Executive and Relations. XXXX Strategic Chief forward-looking Jack. Investor presentation, X this posted I'll With website, under to President; that, over call

Jack Barnes

Andrew. joining Appreciate everyone Good us you, afternoon. Thank today.

tangible two. equity was of on deposit on that quarter increase our and margin linked mix. up yields return continued million and record as as These points controlled well expansion. by loan primarily common Let's tax an X% sustained compared while year reflecting quarter the was turning rise points XX% the $XXX outpace interest generated relationship continued the begin improving year-over-year We higher by rate. revenues, from share improvement to from net of basis an to from growth X well and year-over-year, company's year net effective interest improved XXX in from results increased to slide quality driven reported XX consistent earnings common Net of reflect and ago expenses, The quarter. points income, diverse Total focus The exceptional third X% results the $X.XX. costs. earnings basis margin lower benefited a $X.XX asset a revenues increased basis higher across in on second a per profitability the average overview quarter ago. income of business another of this quarter benefited XX.X%, This

with quarter million in the expected, X% the from quarter. As average third second or $XXX balances rebounded deposits growing

the deposit pricing, by quarter, comparison, costs of our for controlling the same interest to cycle basis In an yield continued our the points XX% during deposit since demonstrated beta loan of we While interest is increasing bearing rates. of beta focus period. were on up beginning the current XX% XX as

stated we in relationships, gathering As client market to however, and disciplined quarter, we we and remain will last the remain lead deposits competitive share not in order crisis. market protect

in while competition, of attributable of loan loans, in and Year-to-date, X%. in lenders, to by $XXX heightened period balances, to or Moving average and second the quarter, expectations, growth lending $XXX end the non-bank York million compared The primarily multi-family the the driven on our decrease flat due balances end $XXX warehouse the million million a period to loans has above bank New were both down mortgage were portfolio. decline demands is a lower transactional balances and below payoffs. been run-off portion to average

the home real as portfolio in and. market, will our at X% industry headwinds, Looking equity particularly the XXXX of year loan our these forward, estate wide of impact reach as X% growth in we not well the goal commercial to slowdown acknowledging

year goals. that not shortfall our growth original are in is our other in impact as this with However, note it disclosed loan line full we year to important does expectations, tracking earnings full

with continuation results this to third of of many lease, addition the continue these in already second higher quarter that XXX We're results. to our quarter are at growth has end performed basis. middle as rest our tightly of to efficiency the terms positive In meaningfully the fourth business at this originations. the we the are improvement income basis ratio a as an emphasize of businesses as our expect than levels year, operating of C&I. strong on a well well non-interest continues net also including enhanced total it of that linked at we on pleased portfolio. have this importance at market excellent quarter of Pipelines improving evidenced XX.X%, financing third points environment, of of focused and leverage, drive The growing and equipment the yields historically income very quarter strongest performance has across solid and quarter We loan by Additionally, of expenses. been end [indiscernible] managing the the interest as quarter remain

we our pleased further as to invest ability costs, enhance producing are technology. especially revenue and We in with talent control particularly

As bankers achieve sustainable the them advisors require complex growth. financial as help their understand and needs of they who to our challenges clients serve evolve,

As lead commercial franchise capabilities banking the based verticals, such, our establishment hired bolstered of we vertical. bankers to each we with and not-for-profit technology three finance, and recently senior three concurrently Boston

expertise We relationships join are current industry will and pleased deepen ones. United, attract new have to our these in-depth as and knowledge People's their leaders

to we technological addition In continue our make investments enhance revenue to in talent, to investing producing capabilities.

evident, that to driving been building opportunities. consumer Given address shift initiatives channel various have digital digital to and we the is tactically foundation a

are engaged to multiple and with For fintech consumer actively deposits, establish small business and companies for lending channels wealth we digital example, origination management.

clients digital qualified strategy sales increase multi-channel a generate build in invested also and prospects to leads, our marketing and have relationships productivity. We engage

mobile our the we in close clients. Bank to shaped transaction. Farmington to Over pleased process the well on the our The acquisition with marketing with deliver which audiences we're were the October digital as to embrace which to have bank digital able speed and experiences was completed we technologies, of the and year, regulatory new X personalized past allow as strategies

Bank enhanced as at for conversion full as ensure the well Integration established presence companies to benefit Massachusetts. believe retail with market these similar who our the of transition of and The pass franchise's central about have seamless both products our services the third we and two Connecticut are detail. Farmington I'll core financial western organizations We the customer power, addition place in team well further focused in suite Experienced will closely commercial confident and combination executing progressed and strengthens are from achieving worked as in January. as customers the teams earnings more returns. capabilities. a transaction's to value that, attractive clients one will and digital together capabilities in discuss cultures our quarter and will of well for in David create the complementary excited shareholders. has take it deepening system to significant With and We

David Rosato

Jack. you, Thank

a net million, consecutive costs. year the to our in reduction income basis XX%. yields X.X the income full of goal points yields due XX.X on year these balance of portfolio higher loan million increases to net million to X, net line was income, Turning linked basis. The a increase with from up to net highlighting $XXX.X or to interest slide sensitivity quarter increased of The contributed interest a $X.X in million million on and XX% of X% interest our balances or ago X XX.X rate to securities Year-to-date, the million additional and business in repricing X.X the largest upward million well loans. continued from sheet. X.X second of for an new as growth Net offset expanded higher due margin portfolio of quarter, XXX Net as is the interest from asset interest benefited XX% costs. income higher floating income day, million XXX.X $XXX,XXX deposit in lower and calendar borrowing interest also

yields and ago costs, margin points added point. day, by X.XX%, yield. Conversely, XX year the displayed business by by higher basis second points, margin X.XX%. favorably As costs new point quarter expansion and continue higher in higher year as basis goal lowered is benefited on than Year-to-date, net slide of a interest while X impacted which basis Net interest lower total in was deposit securities from calendar of up yields the also margin from portfolio our range X.XX% the driven loan basis basis points the points. from the middle X and additional increase remain basis full X XX X, primarily a the to margin portfolio, each the the the the to borrowing portfolio

the New loans ended and mortgage at balances for quarter. the quarter mortgage XXX from lower close on declines York in the quarter XX.X basis, in C&I or a our decrease commercial billion, and portfolio. continued warehouse were equity multi-family residential of growth slide lending X% million, in compared portfolio mix, X, warehouse second ongoing at write-off by million down the lending XXX the XX, period at balances. XXX million Balances On second loans of the the business of mortgage average transactional ended home of diversified XX.X the quarter. from of portion estate driven real and equipment in the financing, offset billion balances June average importance Looking end flat Highlighting balances to our a

only the transactional million, the of $XX the multi-family for in million declined by quarter. portion our year-to-date balances New end the balances average million. York lowered Importantly, period to of XXX impact Since linked this bringing runoff XXX second portfolio portfolio quarter, end

our be As XXX than portfolio for year York full XXX of New to expect in million higher previous of runoff end transactional multi-family now such, million. upper we to the the our expectation

deposits. to on Moving

average expected, quarter X% or third the million billion of quarter. growth as up in linked balances XXX rebounded XX.X As were

respectively, declined checking in slide As to deposit average by CD XX. X% bearing closing. and ratio, loan billion the bank while XX.X is $XXX savings you deposit acquisition improvement end ran deposit eliminated XXX% grew the of from at deposit and basis, we X, promotions wide during period on of successfully balances second $XXX million, see and of On million ended anticipation deposits to market bearing the at loan their the $XX the ratio Bank quarter, quarter collectively It to important interest million note loan time increased a their from an balances elevated end million the XXX June And to non-interest can which and XX%, given shortfall. quarter. various or Farmington money

focus current XX% loan beta the comparison, As the same on cycle of interest referenced is to bearing we by beginning since In the increasing controlling XX% of of Jack an beta during period. interest continue pricing, as deposit earlier, demonstrated our yield rates.

Specifically, the yield quarter, interest XX%, bearing third while our the XX%. loan was beta for was deposit beta

Looking at or linked income basis. quarter on decreased a million slide million XX.X non-interest X% X, X.X of

attributable lending quarters offsets charges, largest higher primarily day are first to seasonality and quarter. higher year driven the $X.X increase calendar quarter interest commercial insurance income were The fees However, quarter $X.X and in to the million. service primarily on $X a lower these second million in the or in Commercial third and bank decline fee in reflecting income linked of to tied additional million third these by customer insurance non-interest and was X.X lending revenues, income volumes. the were compared banking basis, rate of renewals, increases X%. swap million to down the year-over-year which was increased $XXX,XXX The results the

$X On were non-interest full costs As $XXX,XXX other of $XXX.X of X% goal certain expense quarter. million expenses. quarter to related included remainder growth gains professional line non-interest to and services, investments. X% or improved ago the or in other million linked X%. a is of $XXX.X merger non-interest in slide our million in related for year of with XXX,XXX X, million, quarter in Included X.X income with in income second and an XX compared non-interest outside the a to third million reminder, of increase X.X% legacy were and Year-to-date, the year

XXX,XXX professional merger million, and Second were in other. included costs within X.X of million and X.X related quarter outside services which were

merger non-interest improved Excluding million X.X related X%. or costs, expenses

reminder, expenses the closures. with release within associated People's second the was other million quarter Bank expense line earnings a XX included branch in costs of As operating in X.X

compensation Non-interest lower any costs. projects. the largest the were offsets due to branch closures have also to improvements or quarter, from professional For timing related and services third these third costs, of expenses increase with to Vend million. million as occupancy the did and excluding in in million benefited as Lease an $XXX,XXX benefits, XXX outside quarter acquisition. we $X.X not residing goal tracking and the in and expenses, equipment primarily Year-to-date, line The are related our in costs non-interest of XXX employees full million costs, primarily range year XXX,XXX from well higher $XXX merger additional in reflecting

Higher third lower points of linked quarter. improvement by linked continue ratio results ratio of FTE basis the evidenced of displayed and adjustments slide of particularly an tax quarter XXXX, Compared both controlled efficiency impact to on improved beginning X. income. as which and in the reform, revenues basis with third includes interest result the basis on a the a strong year-over-year XX a generated points, efficiency expenses We metric the unfavorable quarter to as well to of ratio leverage the efficiency first XXXX, enhance net improvement XXX XX.X%, quarter operating as quarter in

leverage We which to defined emphasize result exceptional We our maintaining asset underwriting. will through continue well diligent improving quality, and costs. and controlling in revenue remain operating conservative approach the to growth of is

originated in As a from points slide percentage XX, assets. our X points of were basis reflect non-performing REO quarter minimal points of loans and X from quarter recent points year and improved basis demonstrated up ago. on to basis basis levels as non-performing and a at X charge-offs modestly originated the XX loss content Net linked in continue very low assets,

return common average on increased returns points. tangible on average improved while on return X slide was to Moving of second XXX points basis assets on the and points, common assets return return up XXX equity basis from points XX on basis average each XX, XX.X%, average Year-over-year, of tangible quarter. equity basis

we pleased with our metrics. progress have are profitability made, enhancing the We

As we of of these exceptional we earnings XX, to of the year continue continue based, diversified sensitive further and twists. curve spite displays business management. our long interest on for rising rate power the quarter capital we our and especially both improvement LIBOR month of for build loan well with expect final slide rate page risk yield Continuing XX risk mix strong, from metrics. increases end parallel and remain consistent our portfolio rates to the one XX% to of on company, changes or in prime at in a The up ago. second ratios light slide end in profile as rates history and the remain interest either approximately XX% asset quarter, We was be positioned in further of

updated Before than everyone left call going goals include incorporate less opening questions, not to year up not did Farmington to want year, an provide With in that to a to the we these goals July the for full are in remind the Bank. XXXX update we quarter Farmington. I

Farmington. However, September and X.XX for Period quarter end the following billion respectively. we to wanted share points X.XX data billion loans closed the and XX at deposits

be questions. answer you we're ready Now, have. for happy questions Operator, may we'll to any

Operator

Securities. is from question Shaw first Our Instructions] [Operator Fargo Jared from Wells

Jared Shaw

market loan guess, has them the middle back more last C&I bit overall to to slow. market? seeing seeing you're maybe maybe guess, to middle at - been Are at middle starting - you and and over think a see then, is has talk from I you competitive some is back market I national off ten looking to that do years Or growth stepped appetite more the pressure customer core loan what seeing a come trends, commercial market, pick you little core more the just trends, Can slower? you from just the of it Is little what had C&I demand that the are be start up? And change lending? aggressive? that in players

Jack Barnes

the Jack, of bank both the business smaller middle always larger across Jared. has competitive, core but in is This terms banks market also I been very competitors, would footprint. say,

bank are very So, quality everybody. to high customers we attractive that

remain to down So, to well them there's basis points. a a pressure X line competitive. We in the utilization constant serve quarter had and

So to that pay using says customers down to it cash clients. us and have that they're

inventory are would lot economic We increase to in shape, demand. our carrying, the there's think looking say, things of expand Some like and think, you data well, see when or feeling they're balance increased of but we that. pipelines of and we levels, don't we a have people look plans I at that. impacted good certainly pretty

seem economic fact It of a lot there's a saw but does things demand, of more okay think - lot in given there's just be and a - strong, utilization. not lot data competition. of the to I So, some we

is That's hard So, what to we're seeing. of to competitive that's like, don't I we the what that's going would I move environment as look really anywhere. it's say, sure. project think kind for going forward.

Jared Shaw

do with and competitor, appetite good and geographic by that the opposed M&A think there's cost now absorbing you for in as expansion? deals closing to the what's new local deal adding forward? Farmington opportunities for saves sort And cost more And the saving, your serving of lines going Bank then a opportunities of

Jack Barnes

Yeah. impact through the good opening involved. on in we employees economic really Farmington mentioned has has move I pleased it We're able of quickly. the aspects the process remarks, really the of That that with positive lot feel to lot and we're value and very a all a also

that. about good really feel we So

think of acquisitions I and be types pursuing have opportunistic our conversations certainly be it. looking are can characteristics. similar And as we forward, deals that similar those about footprint move across there we we'll would to where identify

Jared Shaw

two a David, in beta said Where deposit said that me, beta for guess the looking I the like the just I XX%. the well that beta the you'd we past long as and see cycle think as the peaking think for quarter one trends, end? then work term deposit XX% in XX% to final at And through the here, cycle was I do you you

David Rosato

the Putting an I peaks - have, proposition. seen have color the it would offer the a industry, is deposit is, on we and us for I creep over for What exact cycle up. betas difficult number where would we

in thought actually had quarter we've third XX%. yet. were the betas would highest quarter, hit when that asked it the We So, we the deposit what last was beta -

that's Our not thinking cumulative, within the there, quarter. and

in still we quarter, money We, called as across commercial, competitive. back CD XXXX. still market is retail of this specials, Our Those half market out. reasonable specials be or that's to are deposit thinking - funding municipal, the in still specials continues CD The costs. some relatively grant

creeping reasonably the from competitors not to-date, betas expecting that unreasonable I'm though all we up, behaved are has coming face. but industry So, the behavior our of

Operator

from from J.P. next Steve Your Alexopoulos Morgan. question comes

Steve Alexopoulos

estate commercial first a see Can environment out? and drag remaining to CRE on we'll balances real balances how you the about wanted bottom follow-up the lending more just before those talk much on runoff growth. for I

Jack Barnes

have talk to his can get willing to that even been being competitive. about thoughts really feel and We I of continue the very be we my more we that, Well, continue. coming does delayed does and seen like. like more than but say that's funds say looking we lenders assets do it's to would the would stretch push on a the ask share but and been I'll on seen. observation of more here. so. to amount out it and is, it, for But activity Jeff gradual certainly non-bank it's see stats we've People seem I it

And some and strong coming have getting are Jeff? Really will to customers of a direction my lot payoffs as are they decided some good out. our of predict from long-term of up on. as that that where too hard to view, in offers our the pass well flatten are sales it

Jeff Tengel

Yeah.

alike, from on I all Payoffs are market non-banks think our business tough assets, right. variety we - I see really that it it's growth or the from forward. to go things of the can, supporting from both a whether to sources, in We're customers environment, our of that's the difficult we lot touched just in to a predict. and an every the you relationship is from exactly it's headwinds. it's and mean banks of intense coming core but way sale that customers good here as

David Rosato

from. that's around would very Steve, disciplined a competition is we coming that where credit remain I of lot add and the just

Jack Barnes

match on pass that opportunities not to willing to deals just to we're having We're do.

Steve Alexopoulos

you're C&I is think you any which better when about on So CRE not side. it's tough side, on the the describing, the really environment

that a is is this I get to or just but at year a at XXXX growth likely year, this juncture? X% hope it X% X% think there that to any could is be year growth we all that not all not X%

David Rosato

Yeah.

grow in So year I have are long would mind in grow the LEAF, hired people veterans a that we in are banks mentioned the continue is, folks opportunities time. Those Lease. Boston there continue point, those for would lead my kinds XX to yes, to say, they've relationships had and larger efforts. new Vend just that to Those of I we

started we go will year in to healthcare vertical that has good had a think have, We and I last as we continue to success 'XX.

So continue of able with attract share. market is talent to be to number talent some where we just that to opportunity fronts a gain comes there and

Steve Alexopoulos

drive just you And one final about here. do and to think worse, positive with your to expansion be environment the NIM getting David. for How to - seems ability worse continue

David Rosato

as because by our we we As controlled, were geographies, it continuing of control do modest, out our and remains expect our not month and year portfolios. as all example book. to said, are relationships, ramped as the out higher well loan and and a think We long but we continued are with not be it's the reasonably means, yielding Jared, but we'll and answering okay, it's any deposit call of sensitivity assist people prime of which across we have I pick spots develop pressure, we're for we LIBOR - asset the the and getting from also transaction Lease, this nice side on loans Vend LEAF one the

put all to of have we when benefit you And that year. each moving managed it we X up expansion well. so points Fed quarter from short-term this the obviously, NIM far rates, as basis So together,

Operator

from Brock from Your UBS. question Vandervliet next is

Brock Vandervliet

the - period but outlook time. is in different look together together putting you, you of growth of don't over the you're you loan acquisitions a I now term and side? at the look of could several longer terms Could aggressively these to have know fact ratio if pieces the Kind knitting time goal, more expense a efficiency

Jack Barnes

the say cost we've a until don't but within if efficiency the and talked good that - to driven very going about while of revenues, increasing to Brock, cost. forward to in we've - you still I last They primarily would maintaining the the had we've ago. the that. the take you're those shifting little have up ratio improvements over successful were side, we discipline been I'll transition, a will, cost publicly X still considerable say, company, while X couple revenue on years story, Why years, and improvements, producing the very side, let's we new

discipline So ingrained well rest assured, is company. very our cost in this

David Rosato

about I'll we as well executed continue the Farmington just them to number well. the through a against of well. improvement cost great vehicle, acquisitions save to we've are point back these past mean, over move I and efficiency your and acquisitions years go

think we and as about take So, end to efficiency way forward, out. ourselves moving and is appropriate the transactions market cost these one do

Brock Vandervliet

with sort going is And a in follow of having any be separate up, operation leasing there we the should seasonality grown size, modeling aware of forward? in

Jack Barnes

tends each be as stronger and year It be reason to no in that fourth think this have year we the quarter to true wouldn't well.

David Rosato

I I dramatic agree. steady. just or not Yeah, pretty would anything, add it's

Operator

Jaffray. question [Operator Piper Instructions] Your from Matthew is from next Breese

Matthew Breese

could technology was I franchise lending not-for-profit. the a new hoping the color on more bit you us little give units, just

for goals from you sufficient need these For with the verticals, are accomplish to three out deposit little teams us more two, meet years, looking or do for bit what perspective? a maybe you are could your loan and have, to a you share those then you scale looking if and

Jeff Tengel

more it been us more had to a bit. get that geography our finance, to one leader, and in individual This is and organized the a people, individual of business. stab is take was hired I'll some franchise Jeff when the that lot like we we're not in Tengel. scale is of these There case of allow us at we that. we've going first already lacking expand focused This little feel

and point little people. new better that to think is us customers ones. And attract existing was that in be a for serve our going that's team we a so The different to bit of a leverage not-for-profit

just scope the loan Boston be in, the that. a per order be today, franchise very lift to more on little we we've there space So we on we're of businesses accelerate of to we C&I deposit little than to unique in and three side in and and oriented the one market. bit that the to size it's be although expectations then market, and been in a not business needed active the big This Of are we the That the than tends that's Boston the - really again, that technology an Massachusetts se, going in out particular. historically already part of side, to economy were called pound-for-pound bit to a have going is is them something like So business the deposit active that's our of a felt bigger part that very that business. participate

we a again, in a team middle we're banker building that of hired out that there experienced So lead very to the instance. and initiative in

Matthew Breese

just see a challenge, And is different an mean on growth switching offset? be if might to growth, overall. asset I then maybe going loan start be securities a we that to tactic to Could the portfolio?

David Rosato

may It or may Matt. be, not

than portfolio know, averages. a lighter you few As our to We points percentage is securities peer tend like that.

right. about just the of I think is our issues bigger the rates, - direction one key there interest of the thoughts

We fairly the flat continued rate yield and a flat that in with curve, yield risk that's increases [indiscernible] is endeavor. highest to return necessarily curve, are a dealing telegraphing not

just next X% to to just is Steve time stick want - was passive see X% to as our loan evolves said, So around would have possible. going call and be thoughts growth year. whether for those the on say, we're just yes, I I possible, too it wouldn't to and around I asked or there. Jack

Matthew Breese

Hello.

David Rosato

Yeah. of was my end the comment. That

Matthew Breese

within or and in the is. And next landscape we to XX see it. months Got a do another trying Might the the how that is list it deal M&A in just M&A for to back so, going the priority high list? you high get then Understood. maybe sense

Jack Barnes

Yeah.

We've years, acquired last Lease you transactions. can insurance that brought in agencies of also, you several that if the we interestingly, into Vend again last years, company, So of and management fired maybe wealth LEAF, see footprint. step number the back the activity our in have banks kind also over about the we've few

those the lot bank want a and with And areas. in markets. Kirk of on People businesses to those and we in dedicate by grow we're very those room are that that here we - active front we progress. we So led made good the understand resource and we've involved discussions across

with are recent very pleased We the transactions. all

So look actively we continue opportunity. for to will

Operator

from is Your Gilbert from next KBW. question Collyn

Collyn Gilbert

do of your third then Just, year portfolio for balances, were balances the David, thing lending? the at to warehouse end the book the the for happen quarter you beginning of the and transactional have, multifamily they what at and same what finished loan the then

David Rosato

Let or me numbers. the start with the X/XX XX

ended - mortgage at the - quarter did So at sorry, say X/XX the and warehouse you or XXX I'm

Collyn Gilbert

No. like Well, XX/XX.

David Rosato

Yeah.

was year-end, New [ph] billion at warehouse XXX was - at billion at and X.XXX of XX/XX then and is XXX. mortgage Multifamily a and end the mortgage at end So, X/XX warehouse billion X/XX. billion X.XXX York X/XX X.XXX at X.XXX at was multifamily. at year Collyn. was at And sorry, I'm

Collyn Gilbert

just now, to dragging then, spread curious the out loan I growth you're the really would it's you're duration that right thinking $X.X you've the just about you trying what's not of on for X.XX just interested how of that because what that book, selling about yield, - but laid book necessarily, you I'm guys the really, on billion that, expectations, maybe good imagine are chunk how that portfolio, understand, thinking the book? presume and so And is ROA. certainly that low, mean and in I given a strategically, resi are financially, the a I necessarily portfolio portfolio

So to that you just think about wanted return there. and risk the know how portfolio

David Rosato

Yes.

- we just it. on to check So

your it think is I actually we're question about line, the along We are going. thinking - where

are loan opportunity but overall and at book improving we're put so be our It about build we carrying how and gradually look shift Most let will improving commercial majority us on to much that better be reasonable. it over arms, come when a analysis going the improve. total great think turn we it is rates larger look The the yield, so thinking at so as we lowest on and will peer portfolio, will look lot X/X, things it's pretty look an continue it these of XX/X, is businesses guys a is at much yielding. strategically up, yield we that way is other have the duration, have residential group portfolio, X/X, of time. doing just a to we're at books about we we at what should give the we great, to I'll it's mix the the the As of

clearly being our to on home oriented to and primary want equity same residential [indiscernible] resi our So capabilities At bank our that household remain product we strategically, sight in to with want a the to strategically, customer. is that it's and also accounts products deliver that's and originate to sight. time, critical in that our good and grow we strong the community clearly so

overall we customers. totally, the navigate yields, So we're our in have to with but mix, deep about those markets want think trying to relationships to higher

Collyn Gilbert

I you're blended And I just new your just Jack generally to similar X.XX what's point guess referenced mean, you, are origination the I the compared what that you're assuming better on a with than that if are structure, is but yields resi there, to the what? on originating that replacing yields just book

Jack Barnes

is a the the that with your lagging In from perhaps lower know that's risk-weighting. the It's highly question you as over capital quarter, reset. the I really a efficient portfolio touch - that's it X%. rate the most mean just was

- the slowly. it up re-prices However

David Rosato

kind we're else, right? is slower, and we're seeing lot mortgage customer warehouse purchase our again. business, it a seeing everyone of reflected it's of not in We're Like refi. But serving the activity

Collyn Gilbert

you And more to quarter Bank. I a I you maybe data NIM the giving ended on they the NIM balances have them? happen do there, bit period have or or on appreciate more on little the a First Can end ask, detail if

Jack Barnes

where can change actually not they at where they're historically historically, - from NIM a been look We Collyn. significant their were. No, but you has

Collyn Gilbert

place? efficiency of higher way know key on And - growth I driver asked, do within the been as of and your has, and it that terms I'm has levels? seeing mean just but what the are the in more margin initiatives move organic will you've operating in I decelerating asking sort and 'XX certain guess of historical this obviously, you definitive expense you efficiency. that of discussion, already guess accelerating kind see think But was benefits be a rates you from the then the of kind I of question in specifically growth have that, or expense I there

Jack Barnes

guide budget. historically. and what Really, where, We're kind how building give think we've we you can of is out middle we our the done of the in best

and aggressively, any controlled for in bring to we the obviously prepared 'XX know continue. investments to not you should costs and you've we're here time, in how necessary Collyn So have make But quite the guidance. while you a long known and us continuing franchise expect talent the just that

Operator

now Barnes will closing over the to and turn have to we remarks. the I like Mr. time call Ladies you. for for Thank this conclude would gentlemen, questions.

Jack Barnes

you. Thank

X, benefiting evidenced Our were ratio expansion XX.X%. efficiency the a a on improving of ratio Bank deposit from XX.X%, dividend enhanced is yields, United. to earnings, on for Farmington of to by Have closing you average increase margin return strong outpace XX% in results that in payout costs, night. basis ratio of and the to the XXX common deposit XX.X%, net increase points the loan which by deposit quarter People's rise this continuing acquisition in operating record equity of Thank quarterly October growth, of your interest generated tangible an interest year-over-year, good loan leverage highlighted a

Operator

you conference. today's your This in participation the presentation. Thank concludes for

now may You Good day. disconnect.

People's United Financial (PBCT) 18 Oct 182018 Q3 Earnings call transcript