PEOPLE'S UNITED FINANCIAL, INC. BRIDGEPORT, Conn., Jan. 15, 2015 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported net income of $64.7 million, or $0.22 per share, for the fourth quarter of 2014, compared to $59.3 million, or $0.20 per share, for the fourth quarter of 2013, and $61.6 million, or $0.21 per share, for the third quarter of 2014. Operating earnings were $65.1 million, or $0.22 per share, for the fourth quarter of 2014, compared to $60.0 million, or $0.20 per share, for the fourth quarter of 2013, and $63.0 million, or $0.21 per share, for the third quarter of 2014.
For the year ended December 31, 2014, net income totaled $251.7 million, or $0.84 per share, compared to $232.4 million, or $0.74 per share, for 2013. Operating earnings were $244.5 million, or $0.82 per share, for 2014, compared to $241.1 million, or $0.77 per share, for 2013. For 2014, operating earnings exclude a net after-tax gain of $13.4 million ($0.04 per share) resulting from the formation of a merchant services joint venture as well as non-operating expenses of $6.2 million after-tax ($0.02 per share).
The Company's Board of Directors declared a $0.165 per share quarterly dividend, payable February 15, 2015 to shareholders of record on February 1, 2015. Based on the closing stock price on January 14, 2015, the dividend yield on People's United Financial common stock is 4.6 percent.
"We are pleased to report an increase in full-year operating earnings per share for the fifth consecutive year, especially in light of the persistently low interest rate environment," commented Jack Barnes, President and Chief Executive Officer. "Our performance in 2014 demonstrates the benefits of our deep customer relationships, product breadth and ongoing strategic initiatives. We continued to build on the momentum generated in recent years by once again achieving meaningful growth in loans and deposits."
Barnes continued, "Looking forward to 2015, our businesses are well positioned in attractive markets and we are optimistic about further growth opportunities. We look to sustain momentum through continued investments in talent, products and services, as well as disciplined execution across each business. We remain committed to successfully building this organization for the long-term and delivering value to both customers and shareholders."
"Our 2014 financial results reflected ongoing revenue growth and effective expense management," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "We achieved strong annual loan and organic deposit growth of nine percent and five percent respectively, while maintaining superior asset quality metrics. Net interest income, driven primarily by continued strong loan originations, increased three percent from the prior year, despite a challenging interest rate and economic environment."
Rosato concluded, "We were particularly pleased to maintain flat operating expenses for the year considering the continued impact of strategic investments and increasing regulatory compliance costs. Our ability to grow revenues and control costs resulted in improved operating leverage and remains an important area of focus for the organization."
Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.13 percent in the fourth quarter of 2014, consistent with the third quarter of 2014 and improved from 0.18 percent in the fourth quarter of 2013. For the full-year of 2014, net loan charge-offs were 0.12 percent of average total loans compared to 0.19 percent in 2013. For the originated loan portfolio, non-performing loans equaled 0.77 percent of loans at December 31, 2014, compared to 0.79 percent at September 30, 2014 and 0.95 percent at December 31, 2013.
Operating return on average assets of 0.75 percent for the fourth quarter of 2014 improved from 0.74 percent in the third quarter of 2014 and was consistent with the fourth quarter of 2013. Operating return on average tangible stockholders' equity was 10.1 percent for the fourth quarter of 2014, compared to 9.9 percent for the third quarter of 2014 and 9.8 percent for the fourth quarter of 2013.
At December 31, 2014, People's United Financial's tier 1 common and total risk-based capital ratios were 9.8 percent and 12.2 percent, respectively, and the tangible equity ratio stood at 7.5 percent. People's United Bank's tier 1 and total risk-based capital ratios were 10.5 percent and 13.1 percent, respectively, at December 31, 2014.
People's United Financial, a diversified financial services company with $36 billion in assets, provides commercial and retail banking, as well as wealth management services through a network of over 400 branches in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine. Through its subsidiaries, People's United Financial provides equipment financing, brokerage and insurance services. Assets managed and administered, which are not reported as assets of People's United Financial, totaled $16.4 billion at December 31, 2014 compared to $16.2 billion at September 30, 2014.
4Q 2014 Financial Highlights
Summary
-- Net income was $64.7 million, or $0.22 per share.
-- Operating earnings were $65.1 million, or $0.22 per share.
-- Net interest income totaled $228.1 million in 4Q14 compared to $228.5
million in 3Q14.
-- Interest income on acquired loans decreased $1.9 million to $17.0
million.
-- Net interest margin decreased five basis points from 3Q14 to 3.00%.
-- The effect of new loan volume at rates lower than the existing
portfolio reduced the margin by five basis points.
-- Provision for loan losses totaled $9.9 million.
-- Net loan charge-offs totaled $8.5 million, of which $4.0 million
related to loans with previously-established specific reserves.
-- Net loan charge-off ratio of 0.13% in 4Q14.
-- Reflects a $7.1 million increase in the originated allowance for
loan losses due to loan growth and a $1.7 million allowance reversal
related to acquired loans.
-- Non-interest income was $86.8 million in 4Q14 compared to $84.0 million
in 3Q14.
-- Net security gains increased $2.5 million.
-- Customer interest rate swap income increased $1.4 million.
-- Insurance revenue decreased $2.2 million, primarily reflecting the
seasonal nature of insurance renewals.
-- Bank service charges decreased $1.3 million.
-- Assets under administration and those under full discretionary
management, neither of which are reported as assets of People's
United Financial, totaled $10.8 billion and $5.6 billion,
respectively, at December 31, 2014, compared to $10.7 billion and
$5.5 billion, respectively, at September 30, 2014.
-- Non-interest expense totaled $207.7 million in 4Q14 compared to $208.8
million in 3Q14.
-- Operating non-interest expense was $207.1 million in 4Q14 compared
to $206.7 million in 3Q14.
-- Regulatory assessments expense increased $0.9 million and
professional and outside services expense increased $0.4 million.
-- The efficiency ratio in 4Q14 improved to 61.3% from 61.4% in 3Q14,
reflecting an increase in adjusted total revenues.
-- Non-operating expenses totaled $0.6 million in 4Q14 compared to $2.1
million in 3Q14.
-- Effective income tax rate was 33.5% for 4Q14 and 33.9% for the full-year
of 2014, compared to 33.1% for the full-year of 2013 (33.2% for 4Q13).
Commercial Banking
-- Commercial banking loans increased $437 million, or 9% annualized, from
September 30, 2014.
-- Average commercial banking loans totaled $19.1 billion in 4Q14, an
increase of $268 million, or 6% annualized, from 3Q14.
-- The ratio of originated non-performing commercial banking loans to
originated commercial banking loans was 0.76% at both December 31, 2014
and September 30, 2014.
-- Non-performing commercial banking assets, excluding acquired
non-performing loans, totaled $154.9 million at December 31, 2014
compared to $154.0 million at September 30, 2014.
-- Net loan charge-offs totaled $6.5 million, or 0.14% annualized, of
average commercial banking loans in 4Q14, compared to $5.9 million, or
0.13% annualized, in 3Q14.
-- For the originated commercial banking portfolio, the allowance for loan
losses as a percentage of loans was 0.91% at December 31, 2014 compared
to 0.92% at September 30, 2014.
-- The commercial banking originated allowance for loan losses represented
120% of originated non-performing commercial banking loans at both
December 31, 2014 and September 30, 2014.
-- Commercial deposits totaled $7.2 billion at December 31, 2014 compared
to $7.0 billion at September 30, 2014.
Retail Banking
-- Residential mortgage loans increased $192 million, or 16% annualized,
from September 30, 2014.
-- Average residential mortgage loans totaled $4.9 billion in 4Q14, an
increase of $238 million, or 21% annualized, from 3Q14.
-- The ratio of originated non-performing residential mortgage loans to
originated residential mortgage loans was 0.80% at December 31, 2014
compared to 0.93% at September 30, 2014.
-- Net loan charge-offs totaled $0.2 million, or 0.02% annualized, of
average residential mortgage loans in 4Q14, compared to $0.7
million, or 0.06% annualized, in 3Q14.
-- Home equity loans increased $10 million, or 2% annualized, from
September 30, 2014.
-- Average home equity loans totaled $2.1 billion in 4Q14, an increase
of $19 million, or 4% annualized, from 3Q14.
-- The ratio of originated non-performing home equity loans to
originated home equity loans was 0.85% at December 31, 2014 compared
to 0.80% at September 30, 2014.
-- Net loan charge-offs totaled $1.3 million, or 0.24% annualized, of
average home equity loans in 4Q14, compared to $1.2 million, or
0.24% annualized, in 3Q14.
-- Retail deposits (excluding brokered deposits) totaled $16.3 billion at
December 31, 2014 compared to $16.0 billion at September 30, 2014.
Conference Call
On January 15, 2015, at 5 p.m., Eastern Time, People's United Financial will host a conference call to discuss this earnings announcement. The call may be heard through www.peoples.com by selecting "Investor Relations" in the "About Us" section on the home page, and then selecting "Conference Calls" in the "News and Events" section. Additional materials relating to the call may also be accessed at People's United Bank's web site. The call will be archived on the web site and available for approximately 90 days.
Certain statements contained in this release are forward-looking in nature. These include all statements about People's United Financial's plans, objectives, expectations and other statements that are not historical facts, and usually use words such as "expect," "anticipate," "believe," "should" and similar expressions. Such statements represent management's current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause People's United Financial's actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors of particular importance to People's United Financial include, but are not limited to: (1) changes in general, national or regional economic conditions; (2) changes in interest rates; (3) changes in loan default and charge-off rates; (4) changes in deposit levels; (5) changes in levels of income and expense in non-interest income and expense related activities; (6) changes in accounting and regulatory guidance applicable to banks; (7) price levels and conditions in the public securities markets generally; (8) competition and its effect on pricing, spending, third-party relationships and revenues; and (9) changes in regulation resulting from or relating to financial reform legislation. People's United Financial does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Access Information About People's United Financial at www.peoples.com.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS
Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(dollars in millions, except per share data) 2014 2014 2014 2014 2013
Earnings Data:
Net interest income (fully taxable equivalent) $233.2 $233.3 $232.8 $231.8 $229.5
Net interest income 228.1 228.5 228.2 227.1 224.9
Provision for loan losses 9.9 12.4 8.8 9.5 10.0
Non-interest income (1) 86.8 84.0 100.1 79.9 82.5
Non-interest expense 207.7 208.8 208.3 216.7 208.7
Operating non-interest expense (2) 207.1 206.7 206.7 211.5 207.7
Income before income tax expense 97.3 91.3 111.2 80.8 88.7
Net income 64.7 61.6 72.3 53.1 59.3
Operating earnings (2) 65.1 63.0 59.9 56.5 60.0
Selected Statistical Data:
Net interest margin (3) 3.00% 3.05% 3.13% 3.17% 3.24%
Return on average assets (3) 0.74 0.72 0.87 0.65 0.75
Operating return on average assets (2), (3) 0.75 0.74 0.72 0.69 0.75
Return on average tangible assets (3) 0.79 0.77 0.93 0.69 0.80
Return on average stockholders' equity (3) 5.5 5.3 6.3 4.7 5.2
Return on average tangible stockholders' equity (3) 10.1 9.7 11.6 8.7 9.7
Operating return on average tangible
stockholders' equity (2), (3) 10.1 9.9 9.6 9.3 9.8
Efficiency ratio (2) 61.3 61.4 61.8 63.9 62.8
Common Share Data:
Basic and diluted earnings per share $0.22 $0.21 $0.24 $0.18 $0.20
Operating earnings per share (2) 0.22 0.21 0.20 0.19 0.20
Dividends paid per share 0.165 0.165 0.165 0.1625 0.1625
Dividend payout ratio 76.5% 80.2% 68.4% 91.5% 84.1%
Operating dividend payout ratio (2) 76.0 78.4 82.5 86.0 83.0
Book value per share (end of period) $15.44 $15.52 $15.46 $15.35 $15.28
Tangible book value per share (end of period) (2) 8.43 8.49 8.41 8.26 8.17
Stock price:
High 15.50 15.32 15.23 15.70 15.25
Low 13.61 14.24 14.00 13.73 14.09
Close (end of period) 15.18 14.47 15.17 14.87 15.12
Common shares (end of period) (in millions) 300.13 299.92 299.79 299.49 298.90
Weighted average diluted common shares (in millions) 298.65 298.44 298.24 297.72 302.17
(1) Three months ended June 30, 2014 includes a $20.6 million net gain resulting from the formation of a merchant
services joint venture.
(2) See Non-GAAP Financial Measures and Reconciliation to GAAP.
(3) Annualized.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
Twelve Months
Ended
December 31,
(dollars in
millions,
except per
share data) 2014 2013
Earnings Data:
Net interest
income (fully
taxable
equivalent) $931.1 $905.8
Net interest
income 911.9 888.6
Provision for
loan losses 40.6 43.7
Non-interest
income (1) 350.8 341.7
Non-interest
expense 841.5 839.0
Operating non-
interest
expense (2) 832.0 826.3
Income before
income tax
expense 380.6 347.6
Net income 251.7 232.4
Operating
earnings (2) 244.5 241.1
Selected Statistical Data:
Net interest
margin 3.09% 3.31%
Return on
average assets 0.75 0.75
Operating return
on average
assets (2) 0.72 0.78
Return on
average
tangible assets 0.80 0.81
Return on
average
stockholders'
equity 5.4 4.9
Return on
average
tangible
stockholders'
equity 10.0 8.9
Operating return on average tangible
stockholders'
equity (2) 9.7 9.2
Efficiency ratio
(2) 62.1 62.3
Common Share Data:
Basic and
diluted
earnings per
share $0.84 $0.74
Operating
earnings per
share (2) 0.82 0.77
Dividends paid
per share 0.6575 0.6475
Dividend payout
ratio 78.2% 88.1%
Operating
dividend payout
ratio (2) 80.6 84.9
Book value per
share (end of
period) $15.44 $15.28
Tangible book
value per share
(end of period)
(2) 8.43 8.17
Stock price:
High 15.70 15.67
Low 13.61 12.22
Close (end of
period) 15.18 15.12
Common shares
(end of period)
(in millions) 300.13 298.90
Weighted average
diluted common
shares (in
millions) 298.26 312.04
(1) Twelve months ended December 31, 2014 includes a $20.6 million net
gain resulting from
the formation of a merchant services joint venture.
(2) See Non-GAAP financial measures and reconciliation to GAAP.
People's United Financial, Inc.
FINANCIAL HIGHLIGHTS - Continued
As of and for the Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(dollars in
millions) 2014 2014 2014 2014 2013
Financial Condition Data:
General:
Total assets $35,997 $34,775 $33,921 $33,112 $33,214
Loans 26,592 25,954 25,455 24,629 24,390
Securities 5,012 4,687 4,580 4,690 5,033
Short-term
investments (1) 769 508 99 73 124
Allowance for
loan losses 198 197 193 190 188
Goodwill and
other
acquisition-
related
intangible
assets 2,103 2,109 2,115 2,121 2,127
Deposits 26,138 25,261 24,089 23,666 22,557
Borrowings 3,692 3,416 3,773 3,887 5,057
Notes and
debentures 1,034 1,022 1,040 639 639
Stockholders'
equity 4,633 4,655 4,636 4,596 4,568
Total risk-
weighted assets
(2) 27,513 26,967 26,591 25,749 25,386
Non-performing
assets (3) 224 229 233 231 248
Net loan charge-
offs 8.5 8.1 6.5 7.0 10.4
Average Balances:
Loans $26,136 $25,611 $24,856 $24,248 $23,598
Securities (4) 4,718 4,691 4,674 4,908 4,550
Short-term
investments (1) 276 254 206 121 146
Total earning
assets 31,130 30,556 29,736 29,277 28,294
Total assets 34,763 34,150 33,273 32,799 31,822
Deposits 25,781 24,660 23,851 22,863 22,379
Total funding
liabilities 29,662 29,125 28,305 27,850 26,817
Stockholders'
equity 4,679 4,648 4,609 4,564 4,574
Ratios:
Net loan charge-
offs to average
total loans
(annualized) 0.13% 0.13% 0.10% 0.12% 0.18%
Non-performing assets to originated loans,
real estate owned
and repossessed
assets (3) 0.88 0.92 0.96 1.00 1.08
Originated allowance for loan losses to:
Originated loans
(3) 0.74 0.75 0.75 0.78 0.78
Originated non-
performing loans
(3) 95.5 94.1 91.7 92.7 81.9
Average
stockholders'
equity to
average total
assets 13.5 13.6 13.9 13.9 14.4
Stockholders'
equity to total
assets 12.9 13.4 13.7 13.9 13.8
Tangible
stockholders'
equity to
tangible assets
(5) 7.5 7.8 7.9 8.0 7.9
Total risk-based
capital (2) 12.2 12.3 12.5 11.2 11.3
(1) Includes securities purchased under agreements to resell.
(2) Consolidated.
(3) Excludes acquired loans.
(4) Average balances for securities are based on amortized cost.
(5) See Non-GAAP Financial Measures and Reconciliation to GAAP.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF CONDITION
Dec. 31, Sept. 30, June 30, Dec. 31,
(in millions) 2014 2014 2014 2013
Assets
Cash and due from
banks $345.1 $312.0 $464.1 $350.8
Short-term
investments 668.6 207.6 98.9 123.6
Total cash and cash
equivalents 1,013.7 519.6 563.0 474.4
Securities purchased
under agreements to
resell 100.0 300.0 - -
Securities:
Trading account
securities, at fair
value 8.3 8.3 8.3 8.3
Securities available
for sale, at fair
value 3,993.7 3,873.0 3,724.0 4,208.2
Securities held to
maturity, at
amortized cost 834.3 630.1 672.1 640.5
Federal Home Loan
Bank stock, at cost 175.7 175.7 175.7 175.7
Total securities 5,012.0 4,687.1 4,580.1 5,032.7
Loans held for sale 34.2 33.4 34.4 23.3
Loans:
Commercial 10,055.1 9,711.4 9,544.4 8,895.2
Commercial real
estate 9,404.3 9,310.6 9,193.2 8,921.6
Residential mortgage 4,932.0 4,739.8 4,552.0 4,416.6
Consumer 2,200.6 2,192.5 2,165.4 2,156.9
Total loans 26,592.0 25,954.3 25,455.0 24,390.3
Less allowance for
loan losses (198.3) (196.9) (192.6) (187.8)
Total loans, net 26,393.7 25,757.4 25,262.4 24,202.5
Goodwill and other
acquisition-related
intangible assets 2,102.5 2,108.7 2,114.9 2,127.3
Bank-owned life
insurance 343.3 342.6 341.3 339.4
Premises and
equipment 277.8 282.5 289.3 304.1
Other assets 719.9 743.6 735.8 710.0
Total assets $35,997.1 $34,774.9 $33,921.2 $33,213.7
Liabilities
Deposits:
Non-interest-
bearing $5,655.1 $5,500.4 $5,542.3 $5,312.2
Savings, interest-
bearing checking and
money market 15,252.4 14,747.3 14,115.0 12,862.2
Time 5,230.7 5,013.6 4,431.4 4,382.9
Total deposits 26,138.2 25,261.3 24,088.7 22,557.3
Borrowings:
Federal Home Loan
Bank advances 2,291.7 2,467.5 2,798.2 3,719.8
Customer repurchase
agreements 486.0 475.6 441.6 501.2
Federal funds
purchased 913.0 469.0 331.0 825.0
Repurchase agreements 1.0 1.0 199.7 1.0
Other borrowings - 2.7 2.5 10.0
Total borrowings 3,691.7 3,415.8 3,773.0 5,057.0
Notes and debentures 1,033.5 1,021.5 1,040.0 639.1
Other liabilities 500.6 421.3 384.0 391.9
Total liabilities 31,364.0 30,119.9 29,285.7 28,645.3
Stockholders' Equity
Common stock 3.9 3.9 3.9 3.9
Additional paid-in
capital 5,291.2 5,285.7 5,281.1 5,277.0
Retained earnings 826.7 812.1 800.6 779.0
Accumulated other
comprehensive loss (168.2) (124.5) (126.2) (155.1)
Unallocated common
stock of Employee
Stock Ownership
Plan, at cost (159.0) (160.8) (162.6) (166.2)
Treasury stock, at
cost (1,161.5) (1,161.4) (1,161.3) (1,170.2)
Total stockholders'
equity 4,633.1 4,655.0 4,635.5 4,568.4
Total liabilities and
stockholders' equity $35,997.1 $34,774.9 $33,921.2 $33,213.7
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(in millions, except per share data) 2014 2014 2014 2014 2013
Interest and dividend income:
Commercial real estate $87.7 $89.2 $88.6 $88.7 $88.5
Commercial 89.1 89.1 87.5 85.3 86.7
Residential mortgage 39.8 38.1 37.8 37.8 36.4
Consumer 18.7 18.5 18.4 18.3 18.7
Total interest on loans 235.3 234.9 232.3 230.1 230.3
Securities 24.0 23.6 24.1 25.1 22.8
Loans held for sale 0.2 0.3 0.2 0.1 0.2
Short-term investments 0.1 0.1 0.1 0.1 0.1
Total interest and dividend income 259.6 258.9 256.7 255.4 253.4
Interest expense:
Deposits 21.7 20.2 19.7 19.3 19.7
Borrowings 2.4 2.8 2.8 3.1 2.9
Notes and debentures 7.4 7.4 6.0 5.9 5.9
Total interest expense 31.5 30.4 28.5 28.3 28.5
Net interest income 228.1 228.5 228.2 227.1 224.9
Provision for loan losses 9.9 12.4 8.8 9.5 10.0
Net interest income after provision for loan losses 218.2 216.1 219.4 217.6 214.9
Non-interest income:
Bank service charges 32.0 33.3 32.8 30.5 31.8
Investment management 10.5 10.7 10.6 9.8 9.6
Operating lease income 10.2 10.2 9.9 11.3 9.4
Commercial banking lending fees 8.6 8.6 7.4 8.8 9.5
Insurance revenue 6.6 8.8 6.8 7.7 6.7
Brokerage commissions 3.4 3.4 3.6 3.2 3.7
Customer interest rate swap income, net 3.2 1.8 2.2 1.4 3.9
Net security gains 2.7 0.2 - 0.1 -
Net gains on sales of residential mortgage loans 1.0 1.1 - 0.8 1.0
Net losses on sales of acquired loans (0.3) (0.2) (0.4) - (0.1)
Gain on merchant services joint venture, net of expenses - - 20.6 - -
Other non-interest income 8.9 6.1 6.6 6.3 7.0
Total non-interest income (1) 86.8 84.0 100.1 79.9 82.5
Non-interest expense:
Compensation and benefits 108.2 108.1 109.3 110.4 107.6
Occupancy and equipment 36.3 36.4 36.6 38.0 36.5
Professional and outside services 14.7 14.3 14.9 15.3 15.7
Regulatory assessments 9.4 8.5 9.0 8.7 8.4
Operating lease expense 8.9 8.7 8.7 11.1 8.4
Amortization of other acquisition-related intangible
assets 6.2 6.2 6.2 6.2 6.6
Other non-interest expense 24.0 26.6 23.6 27.0 25.5
Total non-interest expense (1) 207.7 208.8 208.3 216.7 208.7
Income before income tax expense 97.3 91.3 111.2 80.8 88.7
Income tax expense 32.6 29.7 38.9 27.7 29.4
Net income $64.7 $61.6 $72.3 $53.1 $59.3
Basic and diluted earnings per common share $0.22 $0.21 $0.24 $0.18 $0.20
(1) Total non-interest income includes $20.6
million of non-operating income for the
three months ended June 30, 2014. Total non-
interest expense includes $0.6 million, $2.1
million, $1.6 million, $5.2 million and $1.0
million of non-operating expenses for the
three months ended Dec. 31, 2014, Sept. 30,
2014, June 30, 2014, March 31, 2014 and Dec.
31, 2013, respectively. See Non-GAAP
Financial Measures and Reconciliation to
GAAP.
People's United Financial, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Twelve Months
Ended
December 31,
(in millions,
except per
share data) 2014 2013
Interest and dividend income:
Commercial
real estate $354.2 $351.2
Commercial 351.0 347.0
Residential
mortgage 153.5 139.9
Consumer 73.9 74.8
Total interest
on loans 932.6 912.9
Securities 96.8 89.7
Loans held for
sale 0.8 1.5
Short-term
investments 0.4 0.3
Total interest
and dividend
income 1,030.6 1,004.4
Interest expense:
Deposits 80.9 81.1
Borrowings 11.1 10.5
Notes and
debentures 26.7 24.2
Total interest
expense 118.7 115.8
Net interest
income 911.9 888.6
Provision for
loan losses 40.6 43.7
Net interest
income after
provision for
loan losses 871.3 844.9
Non-interest income:
Bank service
charges 128.6 127.3
Investment
management 41.6 37.2
Operating
lease income 41.6 34.5
Commercial
banking
lending fees 33.4 39.2
Insurance
revenue 29.9 31.2
Brokerage
commissions 13.6 13.7
Customer
interest rate
swap income,
net 8.6 10.8
Net security
gains 3.0 -
Net gains on
sales of
residential
mortgage
loans 2.9 14.8
Net (losses)
gains on
sales of
acquired
loans (0.9) 5.7
Gain on
merchant
services
joint
venture, net
of expenses 20.6 -
Other non-
interest
income 27.9 27.3
Total non-
interest
income (1) 350.8 341.7
Non-interest expense:
Compensation
and benefits 436.0 427.1
Occupancy and
equipment 147.3 148.0
Professional
and outside
services 59.2 60.6
Operating
lease expense 37.4 31.3
Regulatory
assessments 35.6 33.8
Amortization
of other
acquisition-
related
intangible
assets 24.8 26.2
Other non-
interest
expense 101.2 112.0
Total non-
interest
expense (1) 841.5 839.0
Income before
income tax
expense 380.6 347.6
Income tax
expense 128.9 115.2
Net income $251.7 $232.4
Basic and
diluted
earnings per
common share $0.84 $0.74
(1) Total non-interest income includes $20.6 million of non-
operating income for the twelve months
ended December 31, 2014. Total non-interest expense includes $9.5
million and $12.7 million of
non-operating expenses for the twelve months ended December 31,
2014 and 2013, respectively.
See Non-GAAP financial measures and reconciliation to GAAP.
People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
December 31, 2014 September 30, 2014
Three months ended Average Yield/ Average Yield/
(dollars in
millions) Balance Interest Rate Balance Interest Rate
Assets:
Short-term
investments (2) $276.1 $0.1 0.20% $254.3 $0.1 0.20%
Securities (3) 4,718.4 26.7 2.26 4,690.3 26.0 2.22
Loans:
Commercial (4) 9,694.2 91.5 3.78 9,566.4 91.5 3.83
Commercial real
estate 9,368.8 87.7 3.75 9,228.6 89.2 3.86
Residential mortgage 4,877.8 40.0 3.28 4,636.5 38.4 3.31
Consumer 2,195.0 18.7 3.40 2,179.6 18.5 3.40
Total loans 26,135.8 237.9 3.64 25,611.1 237.6 3.71
Total earning assets 31,130.3 $264.7 3.40% 30,555.7 $263.7 3.45%
Other assets 3,633.1 3,594.7
Total assets $34,763.4 $34,150.4
Liabilities and stockholders' equity:
Deposits:
Non-interest-
bearing $5,575.7 $ - - % $5,492.0 $ - - %
Savings, interest-bearing checking
and money market 15,035.6 9.8 0.26 14,481.8 9.3 0.26
Time 5,169.5 11.9 0.92 4,685.8 10.9 0.93
Total deposits 25,780.8 21.7 0.34 24,659.6 20.2 0.33
Borrowings:
Federal Home Loan
Bank advances 1,943.4 2.0 0.42 2,454.8 2.3 0.38
Customer repurchase
agreements 461.1 0.2 0.19 486.8 0.2 0.20
Federal funds
purchased 447.8 0.2 0.16 425.6 0.2 0.17
Repurchase
agreements 1.0 - 1.75 73.0 0.1 0.26
Other borrowings 0.3 - - 2.5 - 0.32
Total borrowings 2,853.6 2.4 0.34 3,442.7 2.8 0.32
Notes and debentures 1,027.5 7.4 2.90 1,022.3 7.4 2.89
Total funding
liabilities 29,661.9 $31.5 0.43% 29,124.6 $30.4 0.42%
Other liabilities 422.3 377.7
Total liabilities 30,084.2 29,502.3
Stockholders' equity 4,679.2 4,648.1
Total liabilities and
stockholders' equity $34,763.4 $34,150.4
Net interest income/spread (5) $233.2 2.97% $233.3 3.03%
Net interest margin 3.00% 3.05%
(1) Average yields earned and rates paid are annualized.
(2) Includes securities purchased under agreements to resell.
(3) Average balances and yields for securities are based on amortized cost.
(4) Includes commercial and industrial loans and equipment financing loans.
(5) Fully taxable equivalent adjustment was $5.1 million, $4.8 million and $4.6 million for the three months ended
December 31, 2014, September 30, 2014 and December 31, 2013, respectively.
People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
December 31, 2013
Three months ended Average Yield/
(dollars in
millions) Balance Interest Rate
Assets:
Short-term
investments (2) $145.9 $0.1 0.27%
Securities (3) 4,549.9 24.9 2.19
Loans:
Commercial (4) 8,543.3 89.2 4.17
Commercial real
estate 8,540.1 88.5 4.15
Residential mortgage 4,360.3 36.6 3.35
Consumer 2,154.0 18.7 3.48
Total loans 23,597.7 233.0 3.95
Total earning assets 28,293.5 $258.0 3.65%
Other assets 3,528.9
Total assets $31,822.4
Liabilities and stockholders' equity:
Deposits:
Non-interest-
bearing $5,160.7 $ - - %
Savings, interest-bearing checking
and money market 12,819.2 8.5 0.27
Time 4,399.1 11.2 1.02
Total deposits 22,379.0 19.7 0.35
Borrowings:
Federal Home Loan
Bank advances 2,647.3 2.3 0.34
Customer repurchase
agreements 490.8 0.3 0.21
Federal funds
purchased 653.7 0.3 0.18
Repurchase
agreements 1.0 - 1.75
Other borrowings 6.4 - 0.08
Total borrowings 3,799.2 2.9 0.30
Notes and debentures 639.1 5.9 3.71
Total funding
liabilities 26,817.3 $28.5 0.43%
Other liabilities 431.2
Total liabilities 27,248.5
Stockholders' equity 4,573.9
Total liabilities and
stockholders' equity $31,822.4
Net interest income/spread (5) $229.5 3.22%
Net interest margin 3.24%
(1) Average yields earned and rates paid are annualized.
(2) Includes securities purchased under agreements to resell.
(3) Average balances and yields for securities are based on amortized cost.
(4) Includes commercial and industrial loans and equipment financing loans.
(5) Fully taxable equivalent adjustment was $5.1 million, $4.8 million and $4.6 million for the three months ended
December 31, 2014, September 30, 2014 and December 31, 2013, respectively.
People's United Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS
December 31, 2014 December 31, 2013
Twelve months ended Average Yield/ Average Yield/
(dollars in
millions) Balance Interest Rate Balance Interest Rate
Assets:
Short-term
investments (1) $214.9 $0.4 0.20% $156.1 $0.3 0.22%
Securities (2) 4,746.9 106.3 2.24 4,545.9 97.7 2.15
Loans:
Commercial (3) 9,266.2 360.7 3.89 8,421.5 356.2 4.23
Commercial real
estate 9,145.0 354.2 3.87 7,965.0 351.2 4.41
Residential mortgage 4,635.1 154.3 3.33 4,126.1 141.4 3.42
Consumer 2,172.7 73.9 3.40 2,145.4 74.8 3.49
Total loans 25,219.0 943.1 3.74 22,658.0 923.6 4.08
Total earning assets 30,180.8 $1,049.8 3.48% 27,360.0 $1,021.6 3.73%
Other assets 3,572.0 3,648.9
Total assets $33,752.8 $31,008.9
Liabilities and stockholders' equity:
Deposits:
Non-interest-
bearing $5,390.1 $ - - % $5,020.3 $ - - %
Savings, interest-
bearing checking
and money market 14,238.9 36.7 0.26 12,417.3 33.0 0.27
Time 4,668.7 44.2 0.95 4,524.7 48.1 1.06
Total deposits 24,297.7 80.9 0.33 21,962.3 81.1 0.37
Borrowings:
Federal Home Loan
Bank advances 2,593.7 9.2 0.36 2,043.9 8.2 0.40
Customer repurchase
agreements 482.0 1.0 0.20 522.7 1.1 0.20
Federal funds
purchased 471.8 0.8 0.17 641.2 1.2 0.19
Repurchase
agreements 53.5 0.1 0.26 1.0 - 1.75
Other borrowings 3.6 - 0.08 2.9 - 0.08
Total borrowings 3,604.6 11.1 0.31 3,211.7 10.5 0.33
Notes and debentures 839.1 26.7 3.19 647.5 24.2 3.74
Total funding
liabilities 28,741.4 $118.7 0.41% 25,821.5 $115.8 0.45%
Other liabilities 386.0 432.6
Total liabilities 29,127.4 26,254.1
Stockholders' equity 4,625.4 4,754.8
Total liabilities
and stockholders'
equity $33,752.8 $31,008.9
Net interest income/spread (4) $931.1 3.07% $905.8 3.28%
Net interest margin 3.09% 3.31%
(1) Includes securities purchased under agreements to resell.
(2) Average balances and yields for securities available for sale are based on amortized cost.
(3) Includes commercial and industrial loans and equipment financing loans.
(4) Fully taxable equivalent adjustment was $19.2 million and $17.2 million for the twelve months ended
December 31, 2014 and 2013, respectively.
People's United Financial, Inc.
Loans acquired in connection with business combinations are initially recorded at fair value, determined based
upon an estimate of expected cash flows, including a reduction for estimated credit losses, and without carryover
of the respective portfolio's historical allowance for loan losses. A decrease in expected cash flows in subsequent
periods may indicate that a loan is impaired, which would require the establishment of an allowance for loan
losses. As such, selected asset quality metrics have been highlighted to distinguish between the 'originated'
portfolio and the 'acquired' portfolio.
NON-PERFORMING ASSETS
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(dollars in millions) 2014 2014 2014 2014 2013
Originated non-performing loans:
Commercial:
Commercial real estate $60.2 $56.0 $59.7 $60.1 $70.8
Commercial and industrial 55.8 52.8 45.8 41.7 43.8
Equipment financing 25.4 29.3 30.7 22.0 23.2
Total 141.4 138.1 136.2 123.8 137.8
Retail:
Residential mortgage 37.6 41.8 44.8 51.3 58.9
Home equity 17.9 16.6 18.0 19.0 19.8
Other consumer 0.1 0.1 0.1 0.2 0.1
Total 55.6 58.5 62.9 70.5 78.8
Total originated non-performing loans (1) 197.0 196.6 199.1 194.3 216.6
REO:
Residential 13.6 16.2 14.9 17.0 13.6
Commercial 11.0 12.4 13.9 16.5 13.1
Total REO 24.6 28.6 28.8 33.5 26.7
Repossessed assets 2.5 3.5 4.8 3.7 4.5
Total non-performing assets $224.1 $228.7 $232.7 $231.5 $247.8
Acquired non-performing loans (contractual amount) (2) $103.6 $116.3 $118.3 $145.7 $142.5
Originated non-performing loans as a percentage
of originated loans 0.77% 0.79% 0.82% 0.84% 0.95%
Non-performing assets as a percentage of:
Originated loans, REO and repossessed assets 0.88 0.92 0.96 1.00 1.08
Tangible stockholders' equity and originated
allowance for loan losses 8.24 8.37 8.61 8.72 9.47
(1) Reported net of government guarantees totaling $17.6 million at Dec. 31, 2014, $18.1 million at Sept. 30, 2014,
$18.4 million at June 30, 2014, $19.2 million at March 31, 2014 and $19.4 million at Dec. 31, 2013.
(2) Represents acquired loans that meet People's United Financial's definition of a non-performing loan but are
not, under the accounting model for acquired loans, subject to classification as non-accrual in the same manner as
originated loans. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on
such loans, when incurred, are first applied against the non-accretable difference established in purchase
accounting and then to any allowance for loan losses recognized subsequent to acquisition.
People's United Financial, Inc.
PROVISION AND ALLOWANCE FOR LOAN LOSSES
Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(dollars in
millions) 2014 2014 2014 2014 2013
Allowance for loan losses on originated loans:
Balance at
beginning of
period $185.0 $182.5 $180.0 $177.5 $177.5
Charge-offs (9.7) (9.1) (8.1) (6.4) (11.4)
Recoveries 1.2 1.2 2.6 0.9 1.3
Net loan
charge-offs (8.5) (7.9) (5.5) (5.5) (10.1)
Provision for
loan losses 11.6 10.4 8.0 8.0 10.1
Balance at end
of period 188.1 185.0 182.5 180.0 177.5
Allowance for loan losses on acquired loans:
Balance at
beginning of
period 11.9 10.1 10.3 10.3 10.7
Charge-offs - (0.2) (1.0) (1.5) (0.3)
Provision for
loan losses (1.7) 2.0 0.8 1.5 (0.1)
Balance at end
of period 10.2 11.9 10.1 10.3 10.3
Total allowance
for loan
losses $198.3 $196.9 $192.6 $190.3 $187.8
Commercial originated allowance for loan loss
as a percentage
of originated
commercial
loans 0.91% 0.92% 0.92% 0.95% 0.95%
Retail originated allowance for loan losses
as a percentage
of originated
retail loans 0.27 0.29 0.30 0.32 0.30
Total originated allowance for loan losses
as a percentage of:
Originated
loans 0.74 0.75 0.75 0.78 0.78
Originated non-
performing
loans 95.5 94.1 91.7 92.7 81.9
NET LOAN CHARGE-OFFS (RECOVERIES)
Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(dollars in
millions) 2014 2014 2014 2014 2013
Commercial:
Commercial real
estate $3.3 $4.2 $3.0 $2.9 $2.1
Commercial and
industrial 3.2 1.8 1.8 0.6 3.7
Equipment
financing - (0.1) 0.1 0.5 0.8
Total 6.5 5.9 4.9 4.0 6.6
Retail:
Residential
mortgage 0.2 0.7 0.5 1.0 1.5
Home equity 1.3 1.2 0.8 1.7 2.0
Other consumer 0.5 0.3 0.3 0.3 0.3
Total 2.0 2.2 1.6 3.0 3.8
Total $8.5 $8.1 $6.5 $7.0 $10.4
Net loan charge-offs to
average total
loans
(annualized) 0.13% 0.13% 0.10% 0.12% 0.18%
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP
In addition to evaluating People's United Financial's results of operations in accordance with U.S. generally accepted accounting principles ("GAAP"), management routinely supplements their evaluation with an analysis of certain non-GAAP financial measures, such as the efficiency and tangible equity ratios, tangible book value per share and operating earnings metrics. Management believes these non-GAAP financial measures provide information useful to investors in understanding People's United Financial's underlying operating performance and trends, and facilitates comparisons with the performance of other banks and thrifts. Further, the efficiency ratio and operating earnings metrics are used by management in its assessment of financial performance, including non-interest expense control, while the tangible equity ratio and tangible book value per share are used to analyze the relative strength of People's United Financial's capital position.
The efficiency ratio, which represents an approximate measure of the cost required by People's United Financial to generate a dollar of revenue, is the ratio of (i) total non-interest expense (excluding goodwill impairment charges, amortization of other acquisition-related intangible assets, losses on real estate assets and non-recurring expenses) (the numerator) to (ii) net interest income on a fully taxable equivalent ("FTE") basis plus total non-interest income (including the FTE adjustment on bank-owned life insurance ("BOLI") income, and excluding gains and losses on sales of assets other than residential mortgage loans and acquired loans, and non-recurring income) (the denominator). In addition, operating lease expense is excluded from total non-interest expense and netted against operating lease income within non-interest income to conform with the reporting approach applied to our other fee-based businesses that are already presented on a net basis. People's United Financial generally considers an item of income or expense to be non-recurring if it is not similar to an item of income or expense of a type incurred within the last two years and is not similar to an item of income or expense of a type reasonably expected to be incurred within the following two years.
Operating earnings exclude from net income those items that management considers to be of such a non-recurring or infrequent nature that, by excluding such items (net of income taxes), People's United Financial's results can be measured and assessed on a more consistent basis from period to period. Items excluded from operating earnings, which include, but are not limited to: (i) non-recurring gains/losses; (ii) merger-related expenses, including acquisition integration and other costs; (iii) charges related to executive-level management separation costs; (iv) severance-related costs; and (v) writedowns of banking house assets, are generally also excluded when calculating the efficiency ratio. Operating earnings per share is derived by determining the per share impact of the respective adjustments to arrive at operating earnings and adding (subtracting) such amounts to (from) GAAP earnings per share. Operating return on average assets is calculated by dividing operating earnings (annualized) by average total assets. Operating return on average tangible stockholders' equity is calculated by dividing operating earnings (annualized) by average tangible stockholders' equity. The operating dividend payout ratio is calculated by dividing dividends paid by operating earnings for the respective period.
The tangible equity ratio is the ratio of (i) tangible stockholders' equity (total stockholders' equity less goodwill and other acquisition-related intangible assets) (the numerator) to (ii) tangible assets (total assets less goodwill and other acquisition-related intangible assets) (the denominator). Tangible book value per share is calculated by dividing tangible stockholders' equity by common shares (total common shares issued, less common shares classified as treasury shares and unallocated Employee Stock Ownership Plan ("ESOP") common shares).
In light of diversity in presentation among financial institutions, the methodologies used by People's United Financial for determining the non-GAAP financial measures discussed above may differ from those used by other financial institutions.
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued
OPERATING NON-INTEREST EXPENSE AND EFFICIENCY RATIO
Twelve Months Ended
Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31,
(dollars in millions) 2014 2014 2014 2014 2013 2014 2013
Total non-interest expense $207.7 $208.8 $208.3 $216.7 $208.7 $841.5 $839.0
Adjustments to arrive at operating
non-interest expense:
Writedowns of banking house
assets - (1.8) - (4.4) - (6.2) (9.0)
Severance-related costs (0.6) (0.3) (1.6) (0.8) (0.4) (3.3) (2.8)
Acquisition integration and
other costs - - - - (0.6) - (0.9)
Total (0.6) (2.1) (1.6) (5.2) (1.0) (9.5) (12.7)
Operating non-interest
expense 207.1 206.7 206.7 211.5 207.7 832.0 826.3
Operating lease expense (1) (8.9) (8.7) (8.7) (11.1) (8.4) (37.4) (31.3)
Amortization of other acquisition-related
intangible assets (6.2) (6.2) (6.2) (6.2) (6.6) (24.8) (26.2)
Other (2) (2.4) (2.2) (3.7) (2.0) (1.4) (10.3) (10.3)
Total non-interest expense
for efficiency ratio $189.6 $189.6 $188.1 $192.2 $191.3 $759.5 $758.5
Net interest income (FTE
basis) $233.2 $233.3 $232.8 $231.8 $229.5 $931.1 $905.8
Total non-interest income 86.8 84.0 100.1 79.9 82.5 350.8 341.7
Total revenues 320.0 317.3 332.9 311.7 312.0 1,281.9 1,247.5
Adjustments:
Gain on merchant services joint venture,
net of expenses - - (20.6) - - (20.6) -
Operating lease expense (1) (8.9) (8.7) (8.7) (11.1) (8.4) (37.4) (31.3)
BOLI FTE adjustment 0.9 0.7 0.6 0.6 0.7 2.8 2.1
Net security gains (2.7) (0.2) - (0.1) - (3.0) -
Other (3) 0.1 (0.5) - (0.1) 0.1 (0.5) (0.8)
Total revenues for
efficiency ratio $309.4 $308.6 $304.2 $301.0 $304.4 $1,223.2 $1,217.5
Efficiency ratio 61.3% 61.4% 61.8% 63.9% 62.8% 62.1% 62.3%
(1) Operating lease expense is excluded from total non-interest expense and netted against operating lease income within
non-interest income to conform with the reporting approach applied to our other fee-based businesses that are already presented
on a net basis.
(2) Items classified as "other" and deducted from non-interest expense for purposes of calculating the efficiency ratio include,
as applicable, certain franchise taxes, real estate owned expenses, contract termination costs and non-recurring expenses.
(3) Items classified as "other" and added to (deducted from) total revenues for purposes of calculating the efficiency ratio include,
as applicable, asset write-offs and gains associated with the sale of branch locations.
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued
OPERATING EARNINGS
Three Months Ended Twelve Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31,
(dollars in millions, except per share data) 2014 2014 2014 2014 2013 2014 2013
Net income, as reported $64.7 $61.6 $72.3 $53.1 $59.3 $251.7 $232.4
Adjustments to arrive at operating earnings:
Gain on merchant services joint venture,
net of expenses - - (20.6) - - (20.6) -
Writedowns of banking house assets - 1.8 - 4.4 - 6.2 9.0
Severance-related costs 0.6 0.3 1.6 0.8 0.4 3.3 2.8
Acquisition integration and other costs - - - - 0.6 - 0.9
Total pre-tax adjustments 0.6 2.1 (19.0) 5.2 1.0 (11.1) 12.7
Tax effect (0.2) (0.7) 6.6 (1.8) (0.3) 3.9 (4.0)
Total adjustments, net of tax 0.4 1.4 (12.4) 3.4 0.7 (7.2) 8.7
Operating earnings $65.1 $63.0 $59.9 $56.5 $60.0 $244.5 $241.1
Earnings per share, as reported (1) $0.22 $0.21 $0.24 $0.18 $0.20 $0.84 $0.74
Adjustments to arrive at operating
earnings per share:
Gain on merchant services joint venture,
net of expenses - - (0.04) - - (0.04) -
Writedowns of banking house assets - - - 0.01 - 0.01 0.03
Severance-related costs - - - - - 0.01 -
Acquisition integration and other costs - - - - - - -
Total adjustments per share (1) - - (0.04) 0.01 - (0.02) 0.03
Operating earnings per share $0.22 $0.21 $0.20 $0.19 $0.20 $0.82 $0.77
Average total assets $34,763 $34,150 $33,273 $32,799 $31,822 $33,753 $31,009
Operating return on
average assets (annualized) 0.75% 0.74% 0.72% 0.69% 0.75% 0.72% 0.78%
(1) The sum of the quarterly per share amounts for 2014 do not equal the twelve months ended amounts due to rounding and/or changes in average share count.
OPERATING RETURN ON AVERAGE TANGIBLE STOCKHOLDERS' EQUITY
Three Months Ended Twelve Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31,
(dollars in millions) 2014 2014 2014 2014 2013 2014 2013
Operating earnings $65.1 $63.0 $59.9 $56.5 $60.0 $244.5 $241.1
Average stockholders' equity $4,679 $4,648 $4,609 $4,564 $4,574 $4,625 $4,755
Less: Average goodwill and average other
acquisition-related intangible assets 2,106 2,112 2,118 2,125 2,131 2,115 2,141
Average tangible stockholders' equity $2,573 $2,536 $2,491 $2,439 $2,443 $2,510 $2,614
Operating return on average tangible
stockholders' equity (annualized) 10.1% 9.9% 9.6% 9.3% 9.8% 9.7% 9.2%
People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued
OPERATING DIVIDEND PAYOUT RATIO
Three Months Ended Twelve Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31,
(dollars in millions) 2014 2014 2014 2014 2013 2014 2013
Dividends paid $49.5 $49.4 $49.4 $48.6 $49.8 $196.9 $204.8
Operating earnings $65.1 $63.0 $59.9 $56.5 $60.0 $244.5 $241.1
Operating dividend payout ratio 76.0% 78.4% 82.5% 86.0% 83.0% 80.6% 84.9%
TANGIBLE EQUITY RATIO
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(dollars in millions) 2014 2014 2014 2014 2013
Total stockholders' equity $4,633 $4,655 $4,636 $4,596 $4,568
Less: Goodwill and other
acquisition-related intangible assets 2,103 2,109 2,115 2,121 2,127
Tangible stockholders' equity $2,530 $2,546 $2,521 $2,475 $2,441
Total assets $35,997 $34,775 $33,921 $33,112 $33,214
Less: Goodwill and other
acquisition-related intangible assets 2,103 2,109 2,115 2,121 2,127
Tangible assets $33,894 $32,666 $31,806 $30,991 $31,087
Tangible equity ratio 7.5% 7.8% 7.9% 8.0% 7.9%
TANGIBLE BOOK VALUE PER SHARE
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(in millions, except per share data) 2014 2014 2014 2014 2013
Tangible stockholders' equity $2,530 $2,546 $2,521 $2,475 $2,441
Common shares issued 396.85 396.71 396.66 396.45 396.45
Less: Shares classified as treasury shares 89.05 89.04 89.03 89.03 89.54
Unallocated ESOP shares 7.67 7.75 7.84 7.93 8.01
Common shares 300.13 299.92 299.79 299.49 298.90
Tangible book value per share $8.43 $8.49 $8.41 $8.26 $8.17
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/peoples-united-financial-reports-fourth-quarter-net-income-and-operating-earnings-of-022-per-share-300021511.html
SOURCE People's United Financial, Inc.
