PBCT - Earnings call transcript Q3 2019 | 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 2019 Earnings Conference Call. My name is Liz and I will be your coordinator for today. At this time, all participant lines are in a listen-only mode.

Following the prepared remarks, there will be a question-and-answer session. reminder, is a replay recorded As purposes. Instructions] this being conference of [Operator

like presentation for turn Andrew would to I now the Inc. proceed, Vice of Financial, Hersom, President over Investor United Relations People's Please sir. Senior Mr. to

Andrew Hersom

joining you and today. for afternoon us Good thank

to Accounting third Planning; Walters, Kirk Chief with Jeff Chairman and results Strategic Barnes, Tengel, quarter Corporate are President; Hoyt, Officer; me Here Chief Chief Executive Financial XXXX Jack Jeff and and Officer. Officer; review our David Rosato, Development

to our remember forward-looking on under Please to refer statements which Relations. Slide our presentation, this is X Investor website, of posted on peoples.com,

turn I'll that, to the With Jack. call over

Jack Barnes

Thank you, appreciate everyone Good We joining us afternoon. today. Andrew.

Let's to on third X. begin overview quarter the turning by Slide

record power success strengthening franchise earnings, further Our the performance, of for third to quarter demonstrates the the and of which build earnings while quarter reflects continuing Company, the long-term. our another

As ago earnings on such, an On to XX% million, pleased of operating equity common of from a operating an $X.XX. $XXX.X of XX.X%. per and share report earnings we tangible common are basis, a were operating year increase average return

The full results through X.XX%, X.XX% net were highlighted yield. of months margins [Technical nine to higher year our outlook quarter than range total well X.XX%. portfolio interest within Difficulty] is the Third X.XX% by margin of

quarter strong of ratio XXX Total a efficiency from higher increased income. non-interest year-over-year, in the drove benefit both increase $XXX.X to Modestly second million compared and XX.X%. revenues linked quarter basis continued and to the expenses point to

of XXX the compared efficiency is by year-to-date improvement of enhance prior ratio XX.X%, to leverage to an points operating evidenced ability year period. Our basis a

control capabilities. has continuing management expense investments make while to costs, in to our approach enabled us important thoughtful to digital Our

mobile have this online device year. We offerings several driven launched and

investment home portal equity of Some direct client advanced and to enhanced previously, account opening residential we a and solution, and peoples.com lending website. platform a deposit have discussed mortgage including more a which,

$XXX,XXX or loans less, small digital this quarter. solution which is offering latest rollout business Our will of for a

of will scale of companies partner our services of forward, ease suite our with and use, needs continue efficiency, the and greater customers. Looking to fintech evolving meet products we to to to bring digital

loans, the The and quarter, to of commercial solid growth, Moving in a finance by growth balances portfolios. with planned million portfolio continue commercial the second mortgage we partially the to period-end residential or primarily increased to on mortgages yielding end remix estate. real driven due balance higher commercial in focus offset from loan the sheet lending, X% on was by warehouse a $XXX reduction as equipment Boston

deposits $XXX balance, a which partially short-term balances, partially million X%, was increased deposit, average an down driven million deposits. to time lower basis, primarily X%, in deposits savings were or Period-end and On by declined as by non-interest due second including July ending bearing withdrawn expected. offset commercial quarter $XXX

and decline and hold each position with we gather ability we State the the which Fairfield deposits. continue operate, balances, in in Recent confirm Connecticut, state share of to Despite in our in the data strong market continue we to maintain one be County, number to FDIC pleased Vermont.

is we growth, share with along to number moved particularly up are of spots addition now in nine. pleased, our the top Belmont Massachusetts market by driven organic the We four XX, in

underway remain acquisition financial execute time-tested our we process United track and of returns. the confident is The in in acquisition integration the progressing quarter, attractive close we as The well Financial fourth is achieving on to approach. transactions on

Central commercial of clients of retail bolsters Western across households our significant and The addition already Massachusetts. and Connecticut share United

our broader services array We People's and are benefit long-tenured for excited join offerings. products, established technology well United, and customer their base to of from

operating call to share the some environment. detail, more in wanted I the the pass discuss thoughts to David results on I Before to over quarter's

businesses looking thoughtfully their Looking to opportunities to grow. advantage ahead, of take our view and to is are manage continue customers

We in York, and as as equipment, in Boston particularly specialty well finance meaningful Metro New continue growth, to our and areas businesses. see of

However, marketplace. uncertainty about the the economy, whether trade related is fears, or recessionary concerning

commercial will year. estate. our notably not real expectation And the Additionally, is coming this in a heightened abate remains, competition in

cautiously economic loan and uncertainties, these growth. Despite competitive we optimistic are about

We have in acquisitions. and offerings, broadened clients through talent households also enhanced of the capabilities franchise digital through strategic the thoughtful while commercial retail adding investments and

meet well in any and as roots, While to to significant the differentiates size, tailored knowledge ability banking solutions we our needs have environment. growth true our to of advantage approach to of customers. take local People's bank in opportunities and positions This with to grown us we the a individual provide solutions-oriented remain United

headwind margin be Federal dependent is in largely to evident extent on It extent will the by but Reserve also in compression changes a policy. which monetary will -- potential XXXX the be

However, on interest managing can focused we to declining what the we remain of offset control rates. effects

loan asset of the businesses, levers balance yielding higher commercial our side asset These to include continuing build excellent revenue portfolios, recent quality. expense residential to continuing cost deposit and reducing fee synergies our managing acquisitions the remix proactively, yielding and sheet mortgages, growing income sustaining capturing by lower of

approach the us environment. and for value the and regardless Our in shareholders managing has generate to customers, business long the operating of to term enable will uncertainties further

With here's David. that,

David Rosato

you, Thank Jack.

and net expenses quarter well rate. income, by strong lower margin, Third maintained tax were continued interest results stable financial a highlighted effective a non-interest

floating loan calendar day interest the by rate the net was interest the up as Slide Net X. to as well in quarter. an million Conversely, balances, $XXX.X $X.X the from benefitted $XXX,XXX to million $X of income $X.X second loans. re-pricing from third due million to quarter. income pricing interest deposit improved Turning portfolio lower reduced additional and downward of million Net income due

the yields income by respectively. in net million In $X.X and borrowings million, lower portfolio interest $X.X and securities negatively addition, increased impacted

second Slide on unchanged despite displayed was As X.XX of net interest X, interest declining rates. margin from quarter the

our in yield. than referenced business costs, the comments, of portfolio of Jack remaining management yields margin his new from the As loan and deposit benefited proactive the higher total

calendar The these points. lower to lower offset Increase impacted respectively. X point borrowings which portfolio, increases margin interest basis loan basis basis margin margin interest net additional yields impacted favorably X day X the while by were the pricing and by basis existing and yields by the points largest basis unfavorably points. net X X points, deposit added security reduced in Improved

Turning by billion end less ended loans to million, billion, $XX million of loans $XX.X by loans partially the portfolio. multifamily the balances basis, period lending, runoff Slide period New June from real increased grew warehouse in quarter offset X% or primarily million or mortgage end $XX.X quarter. finance X% X%, and at of equipment driven on Boston Commercial or York estate, a X. commercial from million than $XX $XXX by up $XXX Average second On the XXth.

the and sheet period declined Conversely, yielding planned with refinance the interest higher residential X%, or increased decline focus Mortgage on our retail continue lending $XXX a balance reduction in end which of we loans activity. warehouse benefited the rates, million to mostly mortgage as portfolios. to remix from purchase mortgages due

quarter the million, Balances to the up by commercial Belmont's second reflecting Furthermore, generated nearly from team. the $XXX primarily grew further momentum real quarter. end the continued finance billion, strong benefit ended the at production by the of in $XXX business $X.X Equipment addition million from Boston of LEAF. estate our

$XXX On million by deposits, $XXX an million. reduction time $XXX of declined primarily displayed decreased Moving million an withdrawn deposits X, $XXX million savings in increase on a $XXX partially X% of balances or linked deposits offset driven in non-interest $XXX quarter, million, bearing and by Slide ending end of short-term basis, on including balances million deposit, to second as average as deposits. commercial Period was in quarter partially or expected. to due which X%, July

to bearing of approximately the Interest quarter. declined short-term market end million. checking approximately the bearing at the and to commercial of is withdrawal the large percentage second that which non-interest money deposits is deposit. improved to from Of It million of total a balances XX% as related important $XXX deposits $XXX XX% note

in by on We first remain third which deposit evidenced the as basis controlling focused costs decline X marked the quarterly the a quarter, quarter reduction of during pricing, XXXX. since point

times then up on lowered we deposit rates costs lowered July month, the As the in market we subsequently Fed's XXst the proactively rate money two CD mentioned we quarter second in and cut, quarter. our X call, to twice leading

down year-over-year. year million up Non-interest of is to strong of $XXX compared million $XXX,XXX million quarter. another results income XX% income XX% period. quarter. $XX.X the prior Other non-interest are nearly linked $XXX Year-to-date, or up marked The

$XXX,XXX. service renewals; third management and $XXX,XXX a non-interest operating the income insurance the bank additional fees, in an primarily and increase in of On Slide linked benefited lending banking components from in X, commercial million insurance income; higher of estate commercial quarter million $X.X revenues, the the calendar in resulting investment by income real the improved $X.X income displayed; by lease increased day are higher in from higher quarter prepayment driven charges, non-interest reflecting variance collectively quarter; fees, which seasonality commercial

down The BOLI income, income. $X unfavorably customer position largest decrease by fee $X.X interest increases record income, offsetting impacted in these mark-to-market also driven million rate was was the million and primarily equity a lower from normalized of quarter. security other second swap driver by is was which Non-interest income one which

$X.X outside of Included and following $X million costs and in in quarter and the the professional services; On Slide quarter. increased were the categories; in benefits; and in $XXX,XXX occupancy expense non-interest linked other. related $X equipment and in X, $XXX.X million compensation $XXX,XXX third million million merger remaining of

costs. $X.X merger second In related incurred the comparison, quarter million of

and component $X.X of notably a million million or costs, increase was by operational in $X.X the related credit. a in offsets most $XXX.X other $X merger was attributable reduction largest certain to and X% linked one-time FDIC higher Excluding in an non-interest compensation legal assessments costs expenses, expense The primarily resulting items, million several other payroll up increases million driven quarter. of was these primary lower $X.X from to improvement and costs. regulatory The million benefits,

Turning from was the quarter the ratio Despite the increase only efficiency basis second XXX XX.X%, enhancing pleased we efficiency in Year-over-year, XX points to leverage, year-to-date operating we efficiency basis of Slide in ratio year significant points XXX increase basis made modest evidenced are a from the improved the points. The quarter, XX.X% due up prior the expenses. of X. with progress the by period. as have ratio the very which third increased

points level, XX increased of already at again XX. in quarter unchanged from basis percentage each and offs remained on our continued slightly Asset content an assets. from non-performing quality was the below and assets, banks. Originated minimal the low points, second loss charge our REO top exceptional demonstrated once and to portfolios, of non-performing basis peer X reflect a our XX Slide Net was originated across and of group loans as as

was equity basis Briefly average on basis, assets while on equity Slides to decreased tangible average XX%. was common average improved points, basis points, XX operating tangible to and on XX, quarter return XX return the linked XXX basis assets average also basis common XX.X%. On point on return points while on return an XXX

you see exceptional mix As diversified capital given business remain our Slide and XX, can strong, history on long ratios management. of risk

Before I on the a comments call to questions, for wanted opening up make few CECL.

adoption the are January plan as of impact $XX Based forecasted reserves. end and progressing approximately third much we CECL implementation economic $XX on as according of XX% efforts Our prepare million in XX%, or could the to on portfolio to existing X, to current an upon balances the increase to at for conditions quarter, XXXX. of result as implementation million

increase reserve longer with our by duration partially loss and requirements of Company's This driven portfolio, is retail shorter primarily experience. duration higher low commercial historical offset portfolios the by associated

to is on XX not estimates, the It is result, potential end, for and include a are of As acquisition. and company, year estimated the impact both the a do of United XX holding ratios, any in note economic refinements the impact these which the before subjects bank further to of decrease change basis important points. capital approximately outlook current

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

Operator

and lines ready Morgan. to from First JP Ladies up Steven comes your gentlemen, [Operator Alexopoulos questions. we open for question Instructions] with the are

Steven Alexopoulos

job of outlook quarter. here in here So term? the could further NIM lowering produce in third the for you XQ? much think deposit nice rates tied to you that, do clearly what's deposit near did the How rates a you And

David Rosato

latter that start question, the Steve. I'll with part of

move deposit two to point markets costs this in with expect moves. money as to in points basis be in rate on either prior CDs, to If move We XX points, full month that's of Our to experience month, able take. basis as what both not deposit did X the but a another well appreciate comment or down your of NIM Fed compression. move basis funds XX we proactive the the basis basis LIBOR commensurate equates there's of we in range end points the or in points been that has That's management. cost give the about a X in on would XX one being

Steven Alexopoulos

the should start When you're to behind loan the And given reported when see And loan doing. side, you? this does stronger remixing move growth? on headwind then we

David Rosato

That's going Steve. to take a while,

multifamily, we have in all, million a guided of million $XXX decrease to of the for headwind first been portfolio X% just do which million quarter So to about year-to-date. the is mortgage year, $XXX New we last $XXX York million. residential that $XXX it's Every

our full the existing probably year end of portfolio or the quarter third few remixing of So at the a of today that. is

that doesn't However, be to there's not loan time that over going mean growth period.

Jack Barnes

be building commercial very For the to me, market opportunity is obviously, dependent. portfolios going

headwinds the are Some steady good them biggest could growing nicely are especially that a talked real pace, one. of others facing estate be at but we about,

Steven Alexopoulos

then a And question big M&A. on picture just

back in cost short. deals, not your even a M&A responding to have shareholder M&A as deals. earned around it? So saves to that value market's With you start it the to guys right, think said, guys used for strong, nice have given dynamics the differently is Do tool you M&A the done been about are several market, way create

David Rosato

we're been building look then opportunity us. M&A, we and pricing, the will market have that's of have I decline just think terms no. deposit with rates relationships, dividends would cetera. deepen M&A about say in to But those attention around a of and paying to in thoughts for we valuable share in where continue and described those et to markets our pay if think lot is done that presence you metrics interest something The gaining and households at we gaining the very all you

Operator

comes question next Stanley. Your with from Ken Morgan Zerbe

Ken Zerbe

guys points. is be pulled in XXX comments previously will outlook slide you question So why you're the above outlined had percentage items of terms the include fees in income, for you meaningfully helpful. couple Is I I that guess But your fee any didn't of it terms But unusual kind maybe the there starting still income. deck. noticed -- hosting off your for up in seems your Thanks. growth X% your fee year that I the of out, on But slide level of in to you X% was guidance is or level in XXX that the there? and deck. slide right that think

David Rosato

of at call said had the say those quarter So our high a had we discussion I'd we because of variability last on not a we we quarter of just XXX.X, guidance, go we even But where little maybe drivers. to second or at raise to the the back of some -- we that though did would strong over. be guidance likely end decided

a of over I Now so go definitely yes, because just quarter activities. the another with original to of of volatility XXX, would will wouldn't the capital say say, I markets we be as is rate, far at XXX some sustainable guidance. the

our our some we quarters And that, in from insurance away to growing business, we'll said performers. But good business, our on wealth more management well. comments, then which focused, much highly markets management continue steady capital have capital are as his be as Jack business,

Ken Zerbe

just then a question. And second

that the terms X-year In of provided we clarity of the impact it's attention But that should terms there to not this anything points to matter possibly think sell are $XX to CECL, get to? sort I maybe negative you the there's capital. from million of or weather what's be from phase XX reserves that regulatory really it to rating additional I CECL, how does side impact? we agencies, mean, you Presumably, the impact as of mean, buy on of but I paying ultimate basis the standpoint. I and appreciate its XX a I'm can increase in million? phrase of to any sure in going exactly. $XX Is else

David Rosato

about a internally good It's as question. It's a talk we question well. here

risk now reflection It's an $XX is in portfolio. different it's and well guys, harder you exercise. say to way not are reflect that model all it opinion CECL -- regime. accounting that a to as of for million So a not provision us, accounting investor, additional It's it a required million is $XX we us. our And I a as within in makes of that would new

Ken Zerbe

you're on change impact there's whether than that, way any of of buybacks it sheet, But anything, no to course? growth, or or the thinking of doesn't other loan balance

David Rosato

will operate we used credit our not is think that Right, differently about bank any or any differently today.

Operator

next Your Jared Shaw from Fargo. question comes Wells with

Jared Shaw

of CECL I the be an deal, horse, accounting? hit that, and you sort you've guess here. mark deal? double there When for not of a at the dead going look impact but on because to impact excess beat economics sticking Or with mark will CECL the UBNK that incremental in was of there that sort structure UBNK X.X% of that of to the a X? with Will a is minute

David Rosato

answer partially that question. will we So

when going an deal, thoughtful We the CECL of obviously, we that that it would impact not estimates of to going the eventually expectation at United. to with so were that they transaction quarter. and just any of exclusive said under books inclusive But we of have we But methodology. account that for we're -- the CECL relativity Belmont, United, we the on we're were comments we to make close really will that to not And on end worked year, the comment. have on were this gave very because

Jared Shaw

look way being in make make now Does CECL at… it there a with you're change change on doesn't so like M&A books work the deal loans it putting you viewing itself? the or, a in of of harder strategy guess, that the again, sort to the minds as out I way and your fundamentally

David Rosato

long-term share, growing is gaining and we're thoughtful with perspective I a would market about about reference go getting and doing M&A Jack new what said say the back I basis. And the customer would is no. answer

And short new specific. accounting And CECL so change will accounting really the is reported deal an to going that change metrics term, in but some regime strategy. -- transactions not it's bank deal very

Jack Barnes

Jared, -- over because that holding that greater idea certain requirements then you for risky reserves of loans I accounting their makes seem heard is one rate view the reserves. for change expectations, very from change less drive the instance. on in what duration would CECL that change the say to a hire real and counter it logical it's would on the estate residential banks and portfolios seems expectations in discussions approach duration lending economics common industry books, time discourage And would for least to be longer But wonder, maybe likely to that, longer I've whether and of which types spread -- doing. the of that's is businesses one to

Jared Shaw

some want you for the just beginning then of I How market end the or belly me, were finance the broader growth that slow growing concern to you're finance and the the guess, finally the they of is of the around that -- guess view economy. lending? think cycle? that light In feel does the next to see over in other, that equipment good be there that Or coming do And of that down we do could expecting you'd you if year? cycle, to of still equipment specifically I how the mentioned you,

David Rosato

in, right economic remain levels we if at will. the Well, to and zone are it's in now, somewhere activity expecting you the

increase on telling us any consumer or we're a to that But finance. that the in to going we is manufacturing equipment is the changing instance a And of verge going approach including once going slow in not a slow, and businesses, information nothing not of recession. data that's unemployment is feel while. certainly the to spending. for data to There's the we're of there's like generally, piece GDP So that our

the recessionary will know and studied finance slow have will the equipment environment, portfolio expect businesses are in but borrowing well when growth as do those We small we that environments? their challenges slow

Operator

with Jefferies. from question next Your comes Haire Casey

Casey Haire

NIM. to follow on the up wanted I

wondering of I quarter? we're kind was by on a holding there all was yields purchase accounting impressed in the think I loan pickup up. a

David Rosato

on around $X.X Very quarter to basis linked maybe million point about and a the modest, NIM.

Jack Barnes

driver. a not was it But

Casey Haire

any so -- is the resi to there the that hanging balance reduction, do is going there sheet other to -- that is mortgage get restructurings then And to did you forward? and the fruit, or low NIM more fund -- help opportunities

David Rosato

residential rates, level the for really be rates the has was in The working happened reduction on interest strategy the the to larger our of mortgage for origination is quarters, less in wider third really activity just What much. and last so portfolio up picked been three quarter drop so spreads. refi aggressive which because

just the will That's greater the that essentially working definitely had flow of for of off manage how number loans we objective. and paid of spreads pace slowed replacement, is we the we but So the wider remixing.

Casey Haire

follow-up But door. you can continue to up in that the And obviously the proactive. being deposit to out guys you what just I the walk above XXX. big and ratio be to your loan -- ratio just to XXX? of job The a give tick -- on be thoughts know deposit deposit did to deposit loan ability you some proactive over side, did us kind with had good

David Rosato

Yes.

If hard to over X.X impacted commercial, and manage government that a would were loan almost and basis, the ratio growth XXX we grow time. take our the banking clock relative a retail a customer off which level ago, we week deposit four that week back the by I and over talked to the we years time, the volumes. billion, outflow, record quite to we of deposits deposits. the were on and In -- will in you pressure were to was hit And we period -- had commercial mortgage cost subside XXX%. warehouse, Obviously, how working about the three, that we million besides of long -- quarter, were we quite this a few put

number XXX%, we that this It's strive quarter. quarter always up almost lifted to X% we every do. below So keep

Casey Haire

yields year growth above being yield? to existing. one coming equipment for last What to this -- new the finance, The are money just And big a And loan yields stuff mortgage this then obviously, just you in accretive is yields the me, quarter. the there? contributor loan VaR that that's there. the mentioned And warehouse, the the

David Rosato

Sure, couple of things. a

would say on portfolio basis last and So was between business new in the contract this quarter That we the quarter did said last first, quarter. about I differential XX this yields, the points.

points. not positive, about This positive, The quite positive quarter. had in LIBOR, XX but still a drop nicely basis basis more bit mortgage as X%, which -- to and with basis the of warehouse quarter XXX The linked a came XX, is spread little in about deal month the in XX was points one quarter, points. but are XXX

Operator

next Davidson. from The Dave question Bishop from comes D.A.

Dave Bishop

Heading of back and morning, cost one peak call X out paying. an differential quoted know competitors, your to on conference deposits you're deposit current between point their there this about rates I

So cost seen you guess, of you've curious to overall have currently? the I number a if where deposits, peak similar

David Rosato

I'm that's sure we the were to But you business existing heard you asking on? not everything going said. current costs about relative new our deposit

Dave Bishop

summer, far at how maybe are compares where guess, sort the, average the off peak of how maybe and the business the deposit of costs? to I new you Yes, peak you it come

David Rosato

rates costs And down markets twice. third said raise in I of we the we're in so quarter, the to then deposits, the way money promotional are, basis to or CD to the about in in twice. Well, and money trying we end retail it really in prior is second comments What those as lowered of points average lowered CD deposit X my saw, speak. what is where either quarter, -- you quarter. we specials kind think specifically markets The CDs, came

CDs would we that today a to have -- example, across we're raising six be as accessing come about For franchise. down. XXX month We a our

the little in move month. a market now XX% the we As for right that pricing is what the over have at of is end chance

where about bringing money closer to months think So get that, rates ago. little a be than costs, three and But promos down we we will also market was those fundamentally different rates as our Dave. is deposit relative down if relationship not to our that today CD it special then I

Dave Bishop

think you of, quasi the within type the guess, was one-time I items. category, preamble in expense or other that, noted number operating a there I unusual

much other category quarter? Just totality expense how this curious through in the flow

David Rosato

Yes, it was $X million.

Dave Bishop

that's used unusual more one-times. as And

some you for expenses legal type mentioned think I either…

David Rosato

Yes, definitely the one-time run in rate. not

Dave Bishop

in sort And look first effective than the was unusual maybe there bit of rate, like little of Anything the terms of for that a lower the couple and quarters some tax here. guides XXXX?

David Rosato

in quarter, have the housing we tax And just favorable was that rate. XXXX impact filed taxes. fairly portfolio our on a low we large - tax No, income and the

So a came once in this investments. little catch bit all of up K-Xs from those

too haven't us normal many You event quarter or years, but it's for fourth third us. followed a for

Dave Bishop

the based the well Is range you in question, one final -- well here narrowest below of the above And then their the capitalized capitalized Clearly, all see you but remain I guess, deck. just the governor just the how rate, levels that? and in through the of terms that growth well looking across margin think risk above curious slide -- capital -- well the sort total just about terms of where capital.

David Rosato

capital but end low the address with for XX% when the comfortable risk historically. Always a the capital constraint us with time sitting -- we're right risk-based that book we easily company is at issuance, in business on sub-debt commercial lending large just usually, Yes, there mix. because But total today have. of that we're that our the very it's with is it

Operator

with KBW. question from Collyn Gilbert next comes Your

Collyn Gilbert

in trying been cut have XX a comments just reconcile think, basis And compression And NIM. questions them. handful point again, But Casey, loan about X basis to I point David my of on rates think your of asked. a I to would just imply in yield. back the X Most hit to

obviously, it quarter, see this You fared it better. didn't

relevant. more, mix is here just So the little dissecting a that bit

what thinking still on side, also you'd then then quarter. to quarter costs And you'd deposit but in guided up because the were fourth this or indicated deposit on maybe last you that I quarter you did the think tick drop would

just to yield together, this So just side. trying so on all piece the loan

So you mentioned XXX over. what basis yields the points were warehouse loan

were, then traditional finance equipment of Just more the your on curious just casing newly yields C&I the what and were yields loans?

David Rosato

I Hopefully, Collyn. get of all. things them couple there, A

re-pricing You know points, probably by also the have a that month loans I I on you don't out cycle little the I I say, not -- X there's for the there. in said number, full the just but probably that because have move X equity to would Fed, mentioned. re-priced. it's second to prime for those it's portfolio X. I I have a X that's days of number lateness would left basis of a all from home a should thought to move small of bit our

we remember deposit three the actually, pretty lastly or that the On the up us we across in I'm would all really our were don't we that the that know platforms -- third have lowest are with you yielding, about and different costs then silent X.XX. larger we are original quite business -- run that. transactions, to -- tick thought opposite, the as said just sure And saying from doing we have the I different -- in quarter. nature, that in PCLC. equipment Coupons

X%, financial times from X.X% business. X% about type can run United finance is then yielding as X.X% many can before that yield we the on run highest where average And old on federal talked that portfolio. People's to Our equipment range for we

Collyn Gilbert

the seem I then what or -- compression that on yields seeing you variation a indicated lot think much in not you're origination seeing that doesn't you're past? have from just within segment? So It new there's of not don't

David Rosato

businesses would one all But job. talked exceptionally across every the good say pressures many the pricing in that an of do I there's PCLC. managers day and mostly There's those say would how our we are. diversified it's times about three fight and I across lending businesses, largest

relatively our large least We warehouse Commercial We estate steady, are pressure at corporate. been is in real has talked mortgage steady. PCLC. about seeing

some businesses we're quarter the of to where able actually spreads. we've widen had in And some

Collyn Gilbert

loan shifting know your pretty XX% guidance to I just to were then thinking I'm were all thought I the growth the UBNK guide, And that them, year. I prior XX% for you growth, on correct what mean, so Is guys before loan But wrong was? sure at here again. it's that

David Rosato

correct. Yes,

Collyn Gilbert

So more year-to-date. less there or you're

-- of curious such. flows consumer sort warehouse Jack, and and appreciate into comments quarter quarter, kind So maybe mortgage sort and loan was of to growth? just you're just how go it just trending trying of pipelines the during and I elevated fourth think But quarter. relates to you of some seeing your fourth your some as as see the how you about, this obviously the behavior broadly But

Jeff Tengel

I Collyn, There's big we see them them We fourth the the mortgage are saw variables pipelines third a with being quarter. warehouse is Jeff consistent the business there, still, into obviously the where some lending as this being quarter, Tengel. in good pretty would shape, one. coming characterize

pretty our for a by quarter Some of business. finance quarter strong being equipment historically that's offset the fourth

number M&A going businesses, So quarter, benefit. businesses occur of of be quarter. still fourth not our a a the fourth markets about if capital impacted A in that's activity the hopeful activity, would won’t lot does lot payoffs of into in occur an our we're good the third level of a pretty fourth in some that saw the health pipeline of the of we quarter We feel that the quarter. elevated which in

Operator

with next question Brock Your Vandervliet Instructions] comes [Operator from UBS.

Brock Vandervliet

back of headwind of of growth in by mentioned. asset comments, as would loan-to-deposit the on accelerate to like you dilutive selling you've resi to exposure, some these going ratio. seem pejorative down that and yields Just it's the you somewhat under potentially the It some process and referenced. couple CECL CECL, that you touched Could

your more ratio. why not And do some that? space with shelf create LD You

David Rosato

we portfolios. We we yes, could. could. And about could Last were multifamily said, York in we do that both profitable and quarter, asked we New are

it. about talk and think we So

these that to discusses -- credit time. the risk. outlook get from with time back comfortable to like usually we Our we're strategies But

We and it. sheet. we we We balance balance need concern accelerate I it don't of sheet, to to capital but gives money ourselves. mentioned for making overly support us the because more all us don't the the remix things up remix They're of time feel more have to the not those --

Brock Vandervliet

quarter the call And on there the allow or in next side, funding is CD terms separately those to FHLB you year, first step quarter you'd quickly? of more that fourth would out rates in the down anything that of or cadence would, repricing

David Rosato

One borrowings much markets that are down down things. are stepped is say I'd loan we sensitive. nicely, in more because guess, home the market -- there those I do from two wholesale costs stepped the the

with much will one-month pretty LIBOR. So they move

their retail, we're funding customer side, portfolios, cetera. doing competitors the are subject commercial, to what On across obviously our et

on news we industry disciplined. little seen The thing. call other But talked good a been in we've We aggressive in which -- this more moves. those quite were that well, has about a early we've some as is the seen of banks great be is

Jeff Tengel

of lot CD the a book. there's And turn in

to the drop think into benefit and we'll and So from CDs that be mature able about as reprice. if lowers the market if quarters, rates, rates you future

Operator

the to further call since turn Ladies no closing now are there remarks. gentlemen, like over for in and queue, the Barnes I'd Mr. to questions

Jack Barnes

record strong you closing, Have interest strong with well net sustained you. deposit of Thank People's good margin, fee highlighted costs, performance, earnings, interest a stable United. was maintained in excellent asset continued the for we're quarter income, and night. Thank by In expenses another which quarter pleased lower quality. your third

Operator

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

You may now disconnect. Good day.

People's United Financial (PBCT) 17 Oct 192019 Q3 Earnings call transcript