PR Newswire | Jul 23, 2020 04:02PM EDT

or $0.21 per Common Share

07/23 15:01 CDT

People's United Financial Reports Second Quarter Net Income of $89.9 Million, or $0.21 per Common ShareOperating Earnings of $0.24 per Common Share- Increased pre-provision net revenue 9 percent from a year ago to $191.2 million and 15 percent on an operating basis to $209.7 million.- Sustained excellent asset quality as evidenced by net loan charge-offs to average total loans of 8 basis points. Provision of $80.8 million primarily reflects the impact of COVID-19 and further strengthens the allowance for credit losses to total loans by 14 basis points to 0.91 percent.- Maintained a strong funding and liquidity profile, which benefited from period-end deposit balances growing $5.2 billion or 12 percent linked-quarter.- Funded nearly 18,000 Paycheck Protection Program (PPP) loans totaling over $2.6 billion as of July 15th, of which approximately 80 percent were small business loans under $150,000 and supported the paychecks of more than 260,000 employees across the Northeast. BRIDGEPORT, Conn., July 23, 2020

BRIDGEPORT, Conn., July 23, 2020 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported results for the second quarter 2020. These results along with comparison periods are summarized below:

($ in millions, except per common share data)

Three Months Ended

Jun. 30, 2020 Mar. 31, 2020 Jun. 30, 2019

Net income $ $ $ 133.2 89.9 130.4

Net income available 86.4 126.9 129.7 to common shareholders

Per common share 0.21 0.30 0.33

Operating earnings^1 101.0 141.1 134.8

Per common share 0.24 0.33 0.34

Net interest income $ 405.6 $ $ 348.1 396.0

Net interest margin 3.05% 3.12% 3.12%

Non-interest income 89.6 123.8 106.3

Non-interest expense $ 304.0 $ $ 278.4 320.1

Operating non-interest 285.5 302.2 271.9expense^1

Efficiency ratio 53.5% 54.0% 55.8%

Average balances

Loans $ 45,153 $ 43,460 $ 38,229

Deposits 48,447 44,163 39,211

Period-end balances

Loans 45,452 44,284 38,557

Deposits 49,934 44,741 39,467

^1See Non-GAAP Financial Measures and Reconciliation to GAAP.

"Our performance in the second quarter is indicative of the strength and resilience of People's United," said Jack Barnes, Chairman and Chief Executive Officer. "Our employees continue to display their extensive know-how to deliver financial solutions despite the many challenges presented by COVID-19. From our frontline personnel providing exceptional service in a socially distant environment, to our robotic process automation team developing bots to expedite the processing of PPP loans, the adaptability of our employees has been remarkable. Consistent with our history of providing support in periods of need, we are committed to helping customers and communities navigate through this crisis. In addition to being among a small group of banks that were first to submit a significant number of PPP applications, we granted forbearance, where appropriate, for both retail and commercial loans and continue to assess the needs of customers that may require extended relief. We also registered for the Main Street Lending program to further support small and mid-sized businesses. Clearly, the duration of the pandemic is unpredictable and its total impact on the economy is unknown. However, we remain confident that our long-held conservative underwriting philosophy and diversified loan portfolio comprised of high-quality, cycle-tested borrowers will once again differentiate our franchise throughout the uncertain times ahead."

"Our second quarter financial results compared to the prior year quarter were highlighted by a 15 percent increase in operating pre-provision net revenue and a 230 basis point improvement in the efficiency ratio," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "These results reflect higher net interest income and our continued success controlling costs. Conversely, non-interest income declined from a year ago due to decreased customer activity, fee waivers related to COVID-19 relief measures and lower wealth management fees. Net interest margin of 3.05 percent was down from 3.12 percent in the first quarter. The margin compression reflects the downward repricing of floating rate loans, partially offset by meaningful reductions in deposit and borrowing costs. Period-end loans and deposits increased 3 percent and 12 percent, respectively, linked-quarter. Excluding PPP, loans decreased 3 percent largely driven by lower commercial real estate balances and our planned reduction in residential mortgages. Deposits primarily benefited from PPP funds, federal stimulus payments and higher municipal balances."

As of and for the Three Months Ended

Jun. 30, 2020 Mar. 31, 2020 Jun. 30, 2019

Asset Quality

Net loan charge-offs to average total loans 0.08% 0.10% 0.05%

Non-performing loans as a percentage of total 0.65% 0.54% 0.51%loans^1

Returns

Return on average assets^2 0.58% 0.89% 1.04%

Return on average tangible 8.1% 11.8% 14.1%common equity^2

Capital Ratios

People's United Financial,Inc.

Tangible common equity / 7.3% 7.4% 7.7%tangible assets

Tier 1 leverage 8.0% 8.4% 8.7%

Common equity tier 1 9.7% 9.5% 10.1%

Tier 1 risk-based 10.2% 10.0% 10.7%

Total risk-based 11.8% 11.3% 12.0%

People's United Bank, N.A.

Tier 1 leverage 8.5% 8.9% 8.9%

Common equity tier 1 10.8% 10.7% 11.0%

Tier 1 risk-based 10.8% 10.7% 11.0%

Total risk-based 12.2% 12.0% 12.4%

^1Ratios for periods prior to January 1, 2020 have been restated to reflect thetotal loan portfolio (originated & acquired)

^2See Non-GAAP Financial Measures andReconciliation to GAAP

The Board of Directors declared a $0.18 per common share quarterly dividend payable August 15, 2020 to shareholders of record on August 3, 2020. Based on the closing stock price on July 22, 2020, the dividend yield on People's United Financial common stock is 6.2 percent.

People's United Bank, N.A. is a subsidiary of People's United Financial, Inc., a diversified, community-focused financial services company headquartered in the Northeast with over $61 billion in assets. Founded in 1842, People's United Bank offers commercial and retail banking through a network of over 400 retail locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine, as well as wealth management and insurance solutions. The company also provides specialized commercial services to customers nationwide.

2Q 2020 Financial Highlights

Summary

* Net income totaled $89.9 million, or $0.21 per common share. * Net income available to common shareholders totaled $86.4 million. * Operating earnings totaled $101.0 million, or $0.24 per common share (see Non-GAAP Financial Measures and Reconciliation to GAAP).

* Net interest income totaled $405.6 million in 2Q20 compared to $396.0 million in 1Q20. * Net interest margin decreased seven basis points from 1Q20 to 3.05% reflecting: * Lower yields on the loan portfolio (decrease of 40 basis points). * Lower yields on the securities portfolio (decrease of seven basis points). * Lower rates on deposits (increase of 29 basis points). * Lower rates on borrowings (increase of 11 basis points).

* Provision for credit losses totaled $80.8 million. * Allowance for credit losses increased $72.3 million, primarily reflecting the impact of COVID-19. * Net loan charge-offs totaled $8.5 million. * Net loan charge-off ratio of 0.08% in 2Q20.

* Non-interest income totaled $89.6 million in 2Q20 compared to $123.8 million in 1Q20. * Bank service charges decreased $7.7 million. * Customer interest rate swap income decreased $6.1 million. * Insurance revenue decreased $1.9 million. * Commercial banking lending fees decreased $1.5 million. * Other non-interest income includes net gains on loans held-for-sale of $16.9 million in 1Q20. * At June 30, 2020, assets under discretionary management totaled $8.7 billion.

* Non-interest expense totaled $304.0 million in 2Q20 compared to $320.1 million in 1Q20. * Operating non-interest expense totaled $285.5 million in 2Q20 and $302.2 million in 1Q20 (see Non-GAAP Financial Measures and Reconciliation to GAAP). * Compensation and benefits expense, excluding $1.0 million and $0.4 million of merger-related expenses in 2Q20 and 1Q20, respectively, decreased $6.7 million, primarily reflecting lower payroll and benefit-related costs in 2Q20. * Occupancy and equipment expense, excluding $0.2 million and $0.5 million of merger-related expenses in 2Q20 and 1Q20, respectively, decreased $2.7 million. * Professional and outside services expense, excluding $3.6 million and $15.1 million of merger-related expenses in 2Q20 and 1Q20, respectively, decreased $1.3 million. * Other non-interest expense includes merger-related expenses of $13.7 million in 2Q20 and $1.9 million in 1Q20 (see Non-GAAP Financial Measures and Reconciliation to GAAP). * The efficiency ratio was 53.5% for 2Q20 compared to 54.0% for 1Q20 and 55.8% for 2Q19 (see Non-GAAP Financial Measures and Reconciliation to GAAP).

* The effective income tax rate was 18.6% for 2Q20 and 20.4% for the first six months of 2020, compared to 20.2% for the full-year of 2019.

Commercial Banking

* Commercial loans totaled $33.5 billion at June 30, 2020, a $1.8 billion increase from March 31, 2020. * Paycheck Protection Plan loans totaled $2.5 billion at June 30, 2020. * The mortgage warehouse portfolio increased $441 million. * The equipment financing portfolio decreased $133 million. * The New York multifamily portfolio decreased $71 million.

* Average commercial loans totaled $32.9 billion in 2Q20, a $2.4 billion increase from 1Q20. * Paycheck Protection Plan loans averaged $1.8 billion in 2Q20. * The average mortgage warehouse portfolio increased $928 million. * The average equipment financing portfolio increased $18 million. * The average New York multifamily portfolio decreased $70 million.

* Commercial deposits totaled $21.0 billion at June 30, 2020 compared to $17.7 billion at March 31, 2020. * The ratio of non-accrual commercial loans to total commercial loans was 0.63% at June 30, 2020 compared to 0.48% at March 31, 2020. * Non-performing commercial assets totaled $224.4 million at June 30, 2020 compared to $163.5 million at March 31, 2020. * For the commercial loan portfolio, the allowance for credit losses as a percentage of commercial loans was 0.83% at June 30, 2020 compared to 0.67% at March 31, 2020. * The commercial allowance for credit losses represented 131% of non-accrual commercial loans at June 30, 2020 compared to 140% at March 31, 2020.

Retail Banking

* Residential mortgage loans totaled $9.6 billion at June 30, 2020, a $458 million decrease from March 31, 2020. * Average residential mortgage loans totaled $9.8 billion in 2Q20, a $415 million decrease from 1Q20.

* Home equity loans totaled $2.2 billion at June 30, 2020, a $122 million decrease from March 31, 2020. * Average home equity loans totaled $2.3 billion in 2Q20, a $91 million decrease from 1Q20.

* Retail deposits totaled $28.9 billion at June 30, 2020 compared to $27.0 billion at March 31, 2020. * The ratio of non-accrual residential mortgage loans to residential mortgage loans was 0.65% at June 30, 2020 compared to 0.66% at March 31, 2020. * The ratio of non-accrual home equity loans to home equity loans was 1.01% at June 30, 2020 compared to 0.94% at March 31, 2020. * For the retail loan portfolio, the allowance for credit losses as a percentage of retail loans was 1.14% at June 30, 2020 compared to 1.03% at March 31, 2020. * The retail allowance for credit losses represented 160% of non-accrual retail loans at June 30, 2020 compared to 146% at March 31, 2020.

Conference CallOn July 23, 2020, 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, international, 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; (9) the successful integration of acquisitions; (10) changes in regulation resulting from or relating to financial reform legislation; and (11) the COVID-19 pandemic and its effect on the economic and business environment in which we operate. 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

As of and for the Three Months Ended

June March Dec. Sept. June 30, 31, 31, 30, 30,

(dollars in millions, except per 2020 2020 2019 2019 2019common share data)

Earnings Data:

Net interest income (fully $ 413.0 $ 403.7 $ 390.3 $ 356.0 $ 355.4taxable equivalent)

Net interest income 405.6 396.0 382.7 348.7 348.1

Provision for credit losses (1) 80.8 33.5 7.3 7.8 7.6

Non-interest income (2) 89.6 123.8 124.2 106.0 106.3

Non-interest expense (2) 304.0 320.1 325.7 281.4 278.4

Income before income tax expense 110.4 166.2 173.9 165.5 168.4

Net income 89.9 130.4 137.5 135.1 133.2

Net income available to common 86.4 126.9 134.0 131.6 129.7shareholders (2)

Selected Statistical Data:

Net interest margin (3) 3.05 % 3.12 % 3.14 % 3.12 % 3.12 %

Return on average assets (2), (3) 0.58 0.89 0.98 1.05 1.04

Return on average common equity 4.6 6.7 7.2 7.7 7.7(3)

Return on average tangible common 8.1 11.8 12.8 14.0 14.1equity (2), (3)

Efficiency ratio (2) 53.5 54.0 53.7 56.8 55.8

Common Share Data:

Earnings per common share:

Basic $ 0.21 $ 0.30 $ 0.31 $ 0.34 $ 0.33

Diluted (2) 0.21 0.30 0.31 0.33 0.33

Dividends paid per common share 0.1800 0.1775 0.1775 0.1775 0.1775

Common dividend payout ratio (2) 87.4 % 60.9 % 52.2 % 53.1 % 53.8 %

Book value per common share $ 17.95 $ 17.87 $ 17.60 $ 17.54 $ 17.34

Tangible book value per common 10.18 10.07 10.12 9.74 9.51share (2)

Stock price:

High 13.99 17.00 17.22 17.10 17.66

Low 9.37 10.40 14.73 13.81 15.24

Close 11.57 11.05 16.90 15.64 16.78

Common shares outstanding (in 424.59 424.47 443.66 398.58 398.34millions) (2)

Weighted average diluted common 420.15 429.77 424.98 394.45 394.57shares (in millions)

(1) Provision for credit losses in 2020 reflects the application of the CECLstandard as well as the impact of COVID-19.

(2) See Non-GAAP Financial Measures and Reconciliation toGAAP.

(3) Annualized.

People's United Financial, Inc.

FINANCIAL HIGHLIGHTS

As of and for the

Six Months Ended

June 30,

(dollars in millions, except per common share data) 2020 2019

Earnings Data:

Net interest income (fully taxable equivalent) $ 816.7 $ 695.4

Net interest income 801.6 680.9

Provision for credit losses (1) 114.3 13.2

Non-interest income 213.4 200.9

Non-interest expense (2) 624.1 555.6

Income before income tax expense 276.6 313.0

Net income 220.3 247.8

Net income available to common shareholders (2) 213.3 240.8

Selected Statistical Data:

Net interest margin (3) 3.09 % 3.15 %

Return on average assets (2), (3) 0.73 1.00

Return on average common equity (3) 5.7 7.4

Return on average tangible common equity (2), (3) 10.0 13.5

Efficiency ratio (2) 53.7 56.6

Common Share Data:

Earnings per common share:

Basic $ 0.50 $ 0.63

Diluted (2) 0.50 0.63

Dividends paid per common share 0.3575 0.3525

Common dividend payout ratio (2) 71.7 % 56.0 %

Book value per common share $ 17.95 $ 17.34

Tangible book value per common share (2) 10.18 9.51

Stock price:

High 17.00 18.03

Low 9.37 14.25

Close 11.57 16.78

Common shares outstanding (in millions) (2) 424.59 398.34

Weighted average diluted common shares (in millions) 424.82 384.39

(1) Provision for credit losses in 2020 reflects the application of the CECLstandard as well as the impact of COVID-19.

(2) See Non-GAAP Financial Measures and Reconciliation toGAAP.

(3) Annualized.

People's United Financial, Inc.

FINANCIAL HIGHLIGHTS - Continued

As of and for the Three Months Ended

June 30, March 31, Dec. 31, Sept. 30, June 30,

(dollars in millions) 2020 2020 2019 2019 2019

Financial ConditionData:

Total assets $ 61,510 $ 60,433 $ 58,590 $ 52,072 $ 51,622

Loans 45,452 44,284 43,596 38,781 38,557

Securities 8,233 8,552 7,790 7,135 7,086

Short-term 987 744 317 158 275investments

Allowance for 414 342 247 246 244credit losses (1)

Goodwill and otheracquisition-related 3,254 3,264 3,275 3,065 3,073intangible assets

Deposits 49,934 44,741 43,590 38,574 39,467

Borrowings 1,782 5,911 5,155 4,629 3,400

Notes and 1,015 1,013 993 916 912debentures

Stockholders' 7,763 7,726 7,947 7,131 7,046equity

Totalrisk-weighted assets(2):

People'sUnited Financial, 45,905 46,408 45,208 39,794 39,026Inc.

People's 45,864 46,397 45,174 39,742 38,976United Bank, N.A.

Non-accrual loans 296 240 224 176 198

Net loan 8.5 10.6 6.7 5.8 4.5charge-offs

Average Balances:

Loans $ 45,153 $ 43,460 $ 42,006 $ 38,317 $ 38,229

Securities (3) 8,240 8,022 7,372 7,041 7,147

Short-term 774 290 294 219 214investments

Total earning 54,168 51,772 49,673 45,577 45,591assets

Total assets 61,841 58,604 56,130 51,524 51,088

Deposits 48,447 44,163 42,195 38,657 39,211

Borrowings 2,911 4,353 4,146 3,855 3,146

Notes and 1,014 1,000 974 914 904debentures

Total funding 52,372 49,515 47,314 43,427 43,261liabilities

Stockholders' 7,757 7,804 7,654 7,079 6,978equity

Ratios:

Net loancharge-offs to average 0.08 % 0.10 % 0.06 % 0.06 % 0.05 %total loans(annualized)

Non-performingassets to total loans,real estate owned

and repossessed 0.69 0.59 0.57 0.52 0.55assets

Allowance forcredit losses to (1):

Total loans 0.91 0.77 0.57 0.63 0.63

Non-accrual 139.8 142.2 110.0 139.5 122.9loans

Averagestockholders' equity 12.5 13.3 13.6 13.7 13.7to average totalassets

Stockholders'equity to total 12.6 12.8 13.6 13.7 13.6assets

Tangible commonequity to tangible 7.3 7.4 8.0 7.8 7.7assets (4)

Total risk-basedcapital (2):

People'sUnited Financial, 11.8 11.3 12.0 12.0 12.0Inc.

People's 12.2 12.0 12.1 12.2 12.4United Bank, N.A.

(1) Allowance for credit losses and asset quality ratios for 2020 reflect theinitial adoption and application of the CECL standard.

(2) June 30, 2020 amounts and ratios arepreliminary.

(3) Average balances for securities are based onamortized cost.

(4) See Non-GAAP Financial Measures and Reconciliationto GAAP.

People's UnitedFinancial, Inc.

CONSOLIDATED STATEMENTS OFCONDITION

June 30, March 31, Dec. 31, June 30,

(in millions) 2020 2020 2019 2019

Assets

Cash and due from $ 491.9 $ 507.6 $ 484.2 $ 505.9banks

Short-term 987.4 744.3 316.8 274.8investments

Securities:

Trading debtsecurities, at fair - - 7.1 9.3value

Equity securities, 5.8 6.2 8.2 8.5at fair value

Debt securitiesavailable-for-sale, 4,080.3 4,276.6 3,564.3 2,971.2at fair value

Debt securitiesheld-to-maturity, at 3,848.6 3,861.5 3,869.2 3,807.5amortized cost

Federal Home LoanBank and Federal 298.3 407.2 341.1 289.4Reserve Bank stock,at cost

Total securities 8,233.0 8,551.5 7,789.9 7,085.9

Loans held-for-sale 12.2 19.2 511.3 17.4

Loans:

Commercial real 13,999.5 14,651.6 14,762.3 12,230.7estate (1)

Commercial and 14,593.9 12,045.7 11,041.6 10,121.8industrial (1)

Equipment 4,880.1 5,012.7 4,910.4 4,611.0financing

Total Commercial 33,473.5 31,710.0 30,714.3 26,963.5Portfolio

Residential 9,623.7 10,081.9 10,318.1 9,532.6mortgage

Home equity and 2,354.3 2,492.1 2,563.7 2,060.6other consumer

Total Retail 11,978.0 12,574.0 12,881.8 11,593.2Portfolio

Total loans 45,451.5 44,284.0 43,596.1 38,556.7

Less allowance for (414.0) (341.7) (246.6) (244.0)credit losses

Total loans, net 45,037.5 43,942.3 43,349.5 38,312.7

Goodwill and otheracquisition-related 3,253.7 3,264.0 3,274.6 3,072.9intangible assets

Bank-owned life 708.1 707.6 705.0 504.4insurance

Premises and 285.7 300.8 305.5 261.0equipment, net

Other assets 2,500.2 2,396.0 1,853.0 1,587.5

Total assets $ 61,509.7 $ 60,433.3 $ 58,589.8 $ 51,622.5

Liabilities

Deposits:

$ 13,656.9 $ 10,526.0 $ 9,803.7 $ 8,747.2Non-interest-bearing

Savings 5,759.4 5,136.0 4,987.7 4,847.4

Interest-bearingchecking and money 22,943.6 20,238.9 19,592.6 17,424.8market

Time 7,574.4 8,840.2 9,205.5 8,447.9

Total deposits 49,934.3 44,741.1 43,589.5 39,467.3

Borrowings:

Federal Home Loan 1,289.7 4,489.7 3,125.4 2,054.4Bank advances

Federal funds 150.0 1,120.0 1,620.0 1,110.0purchased

Customerrepurchase 342.1 301.1 409.1 235.2agreements

Total borrowings 1,781.8 5,910.8 5,154.5 3,399.6

Notes and debentures 1,014.5 1,012.6 993.1 911.5

Other liabilities 1,016.1 1,043.3 905.5 797.9

Total 53,746.7 52,707.8 50,642.6 44,576.3liabilities

Stockholders' Equity

Preferred stock 244.1 244.1 244.1 244.1

Common stock 5.3 5.3 5.3 4.9

Additional paid-in 7,651.2 7,644.4 7,639.4 6,890.7capital

Retained earnings 1,524.6 1,514.5 1,512.8 1,388.1

Unallocated commonstock of Employee (119.3) (121.1) (122.9) (126.5)Stock OwnershipPlan, at cost

Accumulated other (73.9) (92.7) (166.9) (193.0)comprehensive loss

Treasury stock, at (1,469.0) (1,469.0) (1,164.6) (1,162.1)cost

Total 7,763.0 7,725.5 7,947.2 7,046.2stockholders' equity

Totalliabilities and $ 61,509.7 $ 60,433.3 $ 58,589.8 $ 51,622.5stockholders' equity

(1) In connection with the United Bank core system conversion in April 2020,approximately $400 million of loans secured by owner-occupied commercialproperties were prospectively reclassified from commercial real estate loansto commercial and industrial loans. Prior period loan balances were notrestated to conform to the current presentation.

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF INCOME



Three Months Ended

June 30, March 31, Dec. Sept. 30, June 30, 31,

(in millions, except per 2020 2020 2019 2019 2019common share data)

Interest and dividend income:

Commercial real estate (1) $ 122.4 $ 149.6 $ $ 136.6 $ 139.9 147.2

Commercial and industrial 112.4 106.4 114.9 113.4 111.4(1)

Equipment financing 67.6 68.2 66.7 65.3 62.8

Residential mortgage 84.8 90.4 88.2 84.7 85.5

Home equity and other 20.1 28.0 30.8 24.7 25.7consumer

Total interest on loans 407.3 442.6 447.8 424.7 425.3

Securities 49.8 51.2 47.8 44.7 46.2

Loans held-for-sale 0.3 3.3 0.3 0.2 0.1

Short-term investments 0.2 2.0 1.0 1.3 1.2

Total interest and 457.6 499.1 496.9 470.9 472.8dividend income

Interest expense:

Deposits 41.7 78.9 86.9 92.2 96.6

Borrowings 2.0 15.4 18.5 21.5 19.3

Notes and debentures 8.3 8.8 8.8 8.5 8.8

Total interest expense 52.0 103.1 114.2 122.2 124.7

Net interest income 405.6 396.0 382.7 348.7 348.1

Provision for credit losses 80.8 33.5 7.3 7.8 7.6(2)

Net interest income after 324.8 362.5 375.4 340.9 340.5provision for credit losses

Non-interest income:

Bank service charges 20.3 28.0 28.9 27.0 26.4

Investment management fees 17.4 18.1 19.3 19.9 19.7

Operating lease income 11.8 12.6 12.7 12.9 12.6

Commercial banking lending 10.6 12.1 12.9 11.8 10.2fees

Insurance revenue 9.0 10.9 7.5 10.3 8.7

Cash management fees 8.1 7.4 7.1 7.3 7.2

Customer interest rate swap 2.7 8.8 8.5 5.5 7.3income, net

Other non-interest income 9.7 25.9 27.3 11.3 14.2(3)

Total non-interest income 89.6 123.8 124.2 106.0 106.3

Non-interest expense:

Compensation and benefits 167.8 173.9 171.4 158.1 161.3

Occupancy and equipment 48.0 51.0 52.2 45.0 44.4

Professional and outside 25.7 38.5 29.6 23.7 24.9services

Amortization of otheracquisition-related intangible 10.2 10.7 9.8 8.0 8.0assets

Operating lease expense 8.8 9.8 9.6 9.9 9.9

Regulatory assessments 8.7 8.7 7.3 5.3 6.5

Other non-interest expense 34.8 27.5 45.8 31.4 23.4

Total non-interest expense 304.0 320.1 325.7 281.4 278.4(3)

Income before income tax 110.4 166.2 173.9 165.5 168.4expense

Income tax expense 20.5 35.8 36.4 30.4 35.2

Net income 89.9 130.4 137.5 135.1 133.2

Preferred stock dividend 3.5 3.5 3.5 3.5 3.5

Net income available to $ $ 126.9 $ $ 131.6 $ 129.7common shareholders 86.4 134.0

Earnings per common share:

Basic $ $ $ $ $ 0.21 0.30 0.31 0.34 0.33

Diluted 0.21 0.30 0.31 0.33 0.33

(1) In connection with the United Bank core system conversion in April 2020,approximately $400 million of loans secured by owner-occupied commercialproperties were prospectively reclassified from commercial real estate loans tocommercial and industrial loans. Prior period interest income amounts were notrestated to conform to the current presentation.

(2) Provision for credit losses in 2020 reflects the application of the CECLstandard as well as the impact of COVID-19.

(3) Other non-interest income includes $7.6 million of non-operating income forthe three months ended December 31, 2019.

Total non-interest expense includes $18.5 million, $17.9 million, $39.1million, $5.0 million and $6.5 million of non-operating expenses for the threemonths ended June 30, 2020, March 31, 2020, December 31, 2019, September 30,2019 and June 30, 2019, respectively. See Non-GAAP Financial Measures andReconciliation to GAAP.

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF INCOME

Six Months Ended

June 30,

(in millions, except per common share data) 2020 2019

Interest and dividend income:

Commercial real estate $ $ 272.0 272.6

Commercial and industrial 218.8 215.3

Equipment financing 135.8 121.8

Residential mortgage 175.2 156.2

Home equity and other consumer 48.1 50.6

Total interest on loans 849.9 816.5

Securities 101.0 94.0

Loans held-for-sale 3.6 0.3

Short-term investments 2.2 2.5

Total interest and dividend income 956.7 913.3

Interest expense:

Deposits 120.6 177.8

Borrowings 17.4 37.0

Notes and debentures 17.1 17.6

Total interest expense 155.1 232.4

Net interest income 801.6 680.9

Provision for credit losses (1) 114.3 13.2

Net interest income after provision for 687.3 667.7credit losses

Non-interest income:

Bank service charges 48.3 51.6

Investment management fees 35.5 39.0

Operating lease income 24.4 25.2

Commercial banking lending fees 22.7 18.0

Insurance revenue 19.9 19.2

Cash management fees 15.5 14.0

Customer interest rate swap income, net 11.5 10.1

Other non-interest income 35.6 23.8

Total non-interest income 213.4 200.9

Non-interest expense:

Compensation and benefits 341.7 316.7

Occupancy and equipment 99.0 88.7

Professional and outside services 64.2 44.9

Amortization of other acquisition-related 20.9 14.7intangible assets

Operating lease expense 18.6 19.3

Regulatory assessments 17.4 13.5

Other non-interest expense 62.3 57.8

Total non-interest expense (2) 624.1 555.6

Income before income tax expense 276.6 313.0

Income tax expense 56.3 65.2

Net income 220.3 247.8

Preferred stock dividend 7.0 7.0

Net income available to common shareholders $ $ 213.3 240.8

Earnings per common share:

Basic $ $ 0.50 0.63

Diluted 0.50 0.63

(1) Provision for credit losses in 2020 reflects the application of the CECLstandard as well as the

impact of COVID-19.

(2) Total non-interest expense includes $36.4 million and $21.5 million ofnon-operating expenses for

the six months ended June 30, 2020 and 2019, respectively. See Non-GAAPFinancial Measures and

Reconciliation to GAAP.

People's United Financial, Inc.

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)

June 30, 2020 March 31, 2020 June 30, 2019

Three months ended Average Yield Average Yield Average Yield / / /

(dollars in Balance Interest Rate Balance Interest Rate Balance Interest Ratemillions)

Assets:

Short-term $ 774.0 $ 0.2 0.14% $ 289.8 $ 2.0 2.70% $ 214.1 $ 1.2 2.21%investments

Securities (2) 8,240.4 54.8 2.66 8,021.8 56.0 2.80 7,147.1 50.8 2.85

Loans:

Commercial real 14,095.2 122.4 3.48 14,715.3 149.6 4.07 12,323.2 139.9 4.54estate (3)

Commercial and 13,895.6 114.8 3.30 10,866.6 109.8 4.04 9,638.2 114.1 4.74industrial (3)

Equipment 4,933.8 67.6 5.48 4,915.6 68.2 5.55 4,510.8 62.8 5.56financing

Residential 9,821.4 85.1 3.46 10,236.3 90.5 3.54 9,672.6 85.6 3.54mortgage

Home equity and 2,407.1 20.1 3.34 2,726.1 30.7 4.51 2,084.6 25.7 4.94other consumer

Total loans 45,153.1 410.0 3.63 43,459.9 448.8 4.13 38,229.4 428.1 4.48

Total earning 54,167.5 $ 465.0 3.43% 51,771.5 $ 506.8 3.92% 45,590.6 $ 480.1 4.21%assets

Other assets 7,673.9 6,832.2 5,496.9

Total assets $ 61,841.4 $ 58,603.7 $ 51,087.5

Liabilities andstockholders'equity:

Deposits:

$ 12,852.8 $ - % $ 10,077.8 $ - % $ 8,605.6 $ - - %Non-interest-bearing - -

Savings,interest-bearingchecking

and money market 27,402.5 17.0 0.25 24,940.7 44.1 0.71 22,341.3 57.4 1.03

Time 8,191.4 24.7 1.21 9,144.6 34.8 1.52 8,263.8 39.2 1.90

Total deposits 48,446.7 41.7 0.34 44,163.1 78.9 0.71 39,210.7 96.6 0.99

Borrowings:

Federal Home Loan 1,858.8 1.5 0.32 2,430.6 9.8 1.61 1,844.0 12.2 2.64Bank advances

Federal funds 695.5 0.3 0.15 1,593.9 5.1 1.28 1,057.8 6.7 2.53purchased

Customerrepurchase 357.2 0.2 0.24 328.0 0.5 0.67 240.0 0.4 0.77agreements

Other borrowings - - - - - - 4.3 - 0.64

Total borrowings 2,911.5 2.0 0.27 4,352.5 15.4 1.42 3,146.1 19.3 2.46

Notes and debentures 1,013.8 8.3 3.29 999.5 8.8 3.51 903.8 8.8 3.89

Total funding 52,372.0 $ 52.0 0.40% 49,515.1 $ 103.1 0.83% 43,260.6 $ 124.7 1.15%liabilities

Other liabilities 1,712.6 1,284.3 848.8

Total 54,084.6 50,799.4 44,109.4liabilities

Stockholders' equity 7,756.8 7,804.3 6,978.1

Totalliabilities and

stockholders' $ 61,841.4 $ 58,603.7 $ 51,087.5equity

Net interest income/ $ 413.0 3.03% $ 403.7 3.09% $ 355.4 3.06%spread (4)

Net interest margin 3.05% 3.12% 3.12%

(1) Average yields earned and rates paid are annualized.

(2) Average balances and yields for securities are based on amortized cost.

(3) In connection with the United Bank core system conversion in April 2020,approximately $400 million of loans secured by

owner-occupied commercial properties were prospectively reclassified fromcommercial real estate loans to commercial and

industrial loans. Prior period interest income amounts were not restatedto conform to the current presentation.

(4) The fully taxable equivalent adjustment was $7.4 million, $7.7 million and$7.3 million for the three months ended

June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

People's United Financial, Inc.

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)

June 30, 2020 June 30, 2019

Six months ended Average Yield Average Yield / /

(dollars in Balance Interest Rate Balance Interest Ratemillions)

Assets:

Short-term $ 531.9 $ 2.2 0.84% $ 208.5 $ 2.5 2.40%investments

Securities (2) 8,131.1 110.8 2.73 7,228.4 103.2 2.86

Loans:

Commercial real 14,405.2 272.0 3.78 11,957.8 272.6 4.56estate

Commercial and 12,381.1 224.6 3.63 9,307.9 220.6 4.74industrial

Equipment 4,924.7 135.8 5.51 4,434.7 121.8 5.49financing

Residential 10,028.9 175.6 3.55 8,917.3 156.5 3.51mortgage

Home equity and 2,566.6 50.8 3.96 2,029.0 50.6 4.99other consumer

Total loans 44,306.5 858.8 3.89 36,646.7 822.1 4.49

Total earning 52,969.5 $ 971.8 3.68% 44,083.6 $ 927.8 4.21%assets

Other assets 7,253.0 5,369.3

Total assets $ 60,222.5 $ 49,452.9

Liabilities andstockholders'equity:

Deposits:

$ 11,465.3 $ - - % $ 8,454.3 $ - - %Non-interest-bearing

Savings,interest-bearingchecking

and money market 26,171.6 61.1 0.47 21,683.3 106.2 0.98

Time 8,668.0 59.5 1.37 7,700.5 71.6 1.86

Total deposits 46,304.9 120.6 0.52 37,838.1 177.8 0.94

Borrowings:

Federal Home Loan 2,144.7 11.3 1.05 1,866.9 24.6 2.64Bank advances

Federal funds 1,144.7 5.4 0.93 905.7 11.4 2.52purchased

Customerrepurchase 342.6 0.7 0.44 263.0 0.9 0.71agreements

Other borrowings - - - 6.6 0.1 1.85

Total borrowings 3,632.0 17.4 0.96 3,042.2 37.0 2.43

Notes and debentures 1,006.7 17.1 3.40 900.1 17.6 3.91

Total funding 50,943.6 $ 155.1 0.61% 41,780.4 $ 232.4 1.11%liabilities

Other liabilities 1,498.4 901.1

Total 52,442.0 42,681.5liabilities

Stockholders' equity 7,780.5 6,771.4

Totalliabilities and

stockholders' $ 60,222.5 $ 49,452.9equity

Net interest income/ $ 816.7 3.07% $ 695.4 3.10%spread (3)

Net interest margin 3.09% 3.15%

(1) Average yields earned and rates paid areannualized.

(2) Average balances and yields for securities are based on amortizedcost.

(3) The fully taxable equivalent adjustment was $15.1 million and $14.5 millionfor the six months

ended June 30, 2020 and 2019, respectively.

People's United Financial, Inc.

As a result of adopting the CECL standard on January 1, 2020, People's United'sprior distinction between the originated loan portfolio and the acquired loanportfolio is no longer necessary. Accordingly, prior period disclosures havebeen revised to conform to the current period presentation.

NON-PERFORMING ASSETS

June 30, March 31, Dec. 31, Sept. 30, June 30,

(dollars in 2020 2020 2019 2019 2019millions)

Non-accrual loans:

Commercial:

Commercial real $ 73.6 $ 53.5 $ 53.8 $ 28.6 $ 35.5estate

Commercial and 88.8 55.6 38.5 39.0 47.1industrial

Equipment 48.6 42.5 47.7 43.2 44.6financing

Total Commercial 211.0 151.6 140.0 110.8 127.2

Retail:

Residential 62.6 66.6 63.3 48.8 54.7mortgage

Home equity 22.5 22.1 20.8 16.7 16.6

Other consumer 0.1 0.1 - 0.1 -

Total Retail 85.2 88.8 84.1 65.6 71.3

Totalnon-accrual loans $ 296.2 $ 240.4 $ 224.1 $ 176.4 $ 198.5(1)

Real estate owned:

Commercial $ 7.3 $ 7.3 $ 7.3 $ 7.7 $ 0.6

Residential 4.9 9.5 11.9 12.3 8.1

Total real $ 12.2 $ 9.5 $ 11.9 $ 12.3 $ 8.1estate owned

Repossessed assets $ 6.2 $ 4.6 $ 4.2 $ 6.3 $ 5.7

Totalnon-performing $ 314.6 $ 254.5 $ 240.2 $ 195.0 $ 212.3assets

Non-accrual loans asa percentage of 0.65 % 0.54 % 0.51 % 0.45 % 0.51 %total loans

Non-performingassets as apercentage of:

Total loans, realestate owned and 0.69 0.59 0.57 0.52 0.55repossessed assets

Tangiblestockholders' equityand allowance

for credit 6.39 5.45 5.03 4.70 5.05losses

(1) Reported net of government guarantees totaling $2.9 million at June 30,2020, $1.2 million at March 31, 2020, $1.3 million at December 31, 2019, $1.4million at September 30, 2019 and $1.6 million at June 30, 2019.

People's United Financial, Inc.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES



Three Months Ended

June 30, March 31, Dec. Sept. 30, June 30, 31,

(dollars in millions) 2020 2020 2019 2019 2019

Allowance for creditlosses:

Balance at beginning of $ 341.7 $ 246.6 $ 246.0 $ 244.0 $ 240.9period

Charge-offs (10.3) (12.6) (8.5) (8.2) (7.3)

Recoveries 1.8 2.0 1.8 2.4 2.8

Net loan (8.5) (10.6) (6.7) (5.8) (4.5)charge-offs

Provision for credit 80.8 33.5 7.3 7.8 7.6losses

CECL transition - 72.2 N/A N/A N/A adjustment

Balance at end of $ 414.0 $ 341.7 $ 246.6 $ 246.0 $ 244.0period

Allowance for creditlosses as a percentageof:

Total loans 0.91 % 0.77 % 0.57 % 0.63 % 0.63 %

Non-accrual loans 139.8 142.2 110.0 139.5 122.9

N/A - not applicable

NET LOAN CHARGE-OFFS (RECOVERIES)

Three Months Ended

June 30, March 31, Dec. Sept. 30, June 30, 31,

(dollars in millions) 2020 2020 2019 2019 2019

Commercial:

Commercial real $ 1.8 $ 3.4 $ (0.1) $ (0.2) $ 0.1estate

Commercial and - 1.0 2.3 1.6 0.2industrial

Equipment financing 5.2 3.9 4.2 4.2 3.9

Total 7.0 8.3 6.4 5.6 4.2

Retail:

Residential mortgage - 0.8 (0.2) - 0.1

Home equity 0.6 0.1 0.3 - -

Other consumer 0.9 1.4 0.2 0.2 0.2

Total 1.5 2.3 0.3 0.2 0.3

Total net loan $ 8.5 $ 10.6 $ 6.7 $ 5.8 $ 4.5charge-offs

Net loan charge-offs toaverage total loans(annualized) 0.08 % 0.10 % 0.06 % 0.06 % 0.05 %

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP

In addition to evaluating People's United Financial Inc. ("People'sUnited") results of operations in accordance with U.S. generally acceptedaccounting principles ("GAAP"), management routinely supplements its evaluationwith an analysis of certain non-GAAP financial measures, such as the efficiencyand tangible common equity ratios, tangible book value per common share andoperating earnings metrics. Management believes these non-GAAP financialmeasures provide information useful to investors in understanding People'sUnited's underlying operating performance and trends, and facilitatescomparisons with the performance of other financial institutions. Further, theefficiency ratio and operating earnings metrics are used by management in itsassessment of financial performance, including non-interest expense control,while the tangible common equity ratio and tangible book value per common shareare used to analyze the relative strength of People's United's capitalposition.

The efficiency ratio, which represents an approximate measure of the costrequired by People's United to generate a dollar of revenue, is the ratio of(i) total non-interest expense (excluding operating lease expense, goodwillimpairment charges, amortization of other acquisition-related intangibleassets, losses on real estate assets and non-recurring expenses) (thenumerator) to (ii) net interest income on a fully taxable equivalent ("FTE")basis plus total non-interest income (including the FTE adjustment onbank-owned life insurance ("BOLI") income, the netting of operatinglease expense and excluding gains and losses on sales of assets other thanresidential mortgage loans and acquired loans, and non-recurring income) (thedenominator). People's United generally considers an item of income or expenseto be non-recurring if it is not similar to an item of income or expense of atype incurred within the last two years and is not similar to an item of incomeor expense of a type reasonably expected to be incurred within the followingtwo years.

Operating earnings exclude from net income available to commonshareholders those items that management considers to be of such anon-recurring or infrequent nature that, by excluding such items (net of incometaxes), People's United's results can be measured and assessed on a moreconsistent 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) writedowns of banking house assets and related lease termination costs; (iv) severance-related costs; and (v) charges related to executive-levelmanagement separation costs, are generally also excluded when calculating theefficiency ratio. Operating earnings per common share ("EPS") is derived bydetermining the per common share impact of the respective adjustments to arriveat operating earnings and adding (subtracting) such amounts to (from) dilutedEPS, as reported. Operating return on average assets is calculated by dividingoperating earnings (annualized) by average total assets. Operating return onaverage tangible common equity is calculated by dividing operating earnings(annualized) by average tangible common equity. The operating common dividendpayout ratio is calculated by dividing common dividends paid by operatingearnings for the respective period.

Pre-provision net revenue is a useful financial measure as it enables anassessment of the Company's ability to generate earnings to cover credit lossesthrough a credit cycle as well as providing an additional basis for comparingthe Company's results of operation between periods by isolating the impact ofthe provision for credit losses, which can vary significantly between periods.

The tangible common equity ratio is the ratio of (i) tangible common equity(total stockholders' equity less preferred stock, goodwill and otheracquisition-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 common share is calculated bydividing tangible common equity by common shares (total common shares issued,less common shares classified as treasury shares and unallocated Employee StockOwnership Plan ("ESOP") common shares).

In light of diversity in presentation among financial institutions, themethodologies used by People's United for determining the non-GAAP financialmeasures 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 EFFICIENCYRATIO

Three Months Ended Six Months Ended

June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30,

(dollars in 2020 2020 2019 2019 2019 2020 2019millions)

Totalnon-interest $ 304.0 $ 320.1 $ 325.7 $ 281.4 $ 278.4 $ 624.1 $ 555.6expense

Adjustments toarrive atoperating

non-interestexpense:

Merger-related (18.5) (17.9) (22.6) (5.0) (6.5) (36.4) (21.5)expenses

Intangibleasset - - (16.5) - - - -write-down

Total (18.5) (17.9) (39.1) (5.0) (6.5) (36.4) (21.5)

Operatingnon-interest 285.5 302.2 286.6 276.4 271.9 587.7 534.1expense

Adjustments:

Amortization of otheracquisition-related

intangible (10.2) (10.7) (9.8) (8.0) (8.0) (20.9) (14.7)assets

Operating (8.8) (9.8) (9.6) (9.9) (9.9) (18.6) (19.3)lease expense

Other (1) (1.9) (1.9) (1.6) (1.4) (1.4) (3.8) (3.2)

Totalnon-interestexpense for

efficiency $ 264.6 $ 279.8 $ 265.6 $ 257.1 $ 252.6 $ 544.4 $ 496.9ratio

Net interestincome (FTE $ 413.0 $ 403.7 $ 390.3 $ 356.0 $ 355.4 $ 816.7 $ 695.4basis)

Totalnon-interest 89.6 123.8 124.2 106.0 106.3 213.4 200.9income

Total 502.6 527.5 514.5 462.0 461.7 1,030.1 896.3revenues

Adjustments:

Operating (8.8) (9.8) (9.6) (9.9) (9.9) (18.6) (19.3)lease expense

BOLI FTE 1.0 0.8 0.7 0.5 0.7 1.8 1.3adjustment

Gain on saleof branches, - - (7.6) - - - -net of expenses

Net security - - (0.1) - (0.1) - (0.1)gains

Other (2) - (0.3) (3.2) 0.1 - (0.3) 0.3

Totalrevenues for $ 494.8 $ 518.2 $ 494.7 $ 452.7 $ 452.4 $ 1,013.0 $ 878.5efficiencyratio

Efficiency 53.5% 54.0% 53.7% 56.8% 55.8% 53.7% 56.6%ratio

(1) Items classified as "other" and deducted from non-interest expense forpurposes of calculating the efficiency ratio

include certain franchise taxes and real estate owned expenses.

(2) Items classified as "other" and (deducted from) added to total revenuesfor purposes of calculating the efficiency ratio

include, as applicable, asset write-offs and gains/losses associatedwith the sale of branch locations.

PRE-PROVISION NET REVENUE

Three Months Ended Six Months Ended

June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30,

(dollars in 2020 2020 2019 2019 2019 2020 2019millions)

Net interest $ 405.6 $ 396.0 $ 382.7 $ 348.7 $ 348.1 $ 801.6 $ 680.9income

Non-interest 89.6 123.8 124.2 106.0 106.3 213.4 200.9income

Less:Non-interest (304.0) (320.1) (325.7) (281.4) (278.4) (624.1) (555.6)expense

Pre-provision 191.2 199.7 181.2 173.3 176.0 390.9 380.9net revenue

Non-operating 18.5 17.9 39.1 5.0 6.5 36.4 21.5expense

Operatingpre-provision $ 209.7 $ 217.6 $ 220.3 $ 178.3 $ 182.5 $ 427.3 $ 402.4net revenue

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING EARNINGS



Three Months Ended Six Months Ended

June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30,

(dollars inmillions, except per 2020 2020 2019 2019 2019 2020 (1) 2019common share data)

Net income availableto common $ 86.4 $ 126.9 $ 134.0 $ 131.6 $ 129.7 $ 213.3 $ 240.8shareholders

Adjustments toarrive at operatingearnings:

Merger-related 18.5 17.9 22.6 5.0 6.5 36.4 21.5expenses

Intangible asset - - 16.5 - - - -write-down

Gain on sale ofbranches, net of - - (7.6) - - - -expenses

Total pre-tax 18.5 17.9 31.5 5.0 6.5 36.4 21.5adjustments

Tax effect (3.9) (3.7) (6.7) (1.1) (1.4) (7.7) (4.5)

Totaladjustments, net of 14.6 14.2 24.8 3.9 5.1 28.7 17.0tax

Operating $ 101.0 $ 141.1 $ 158.8 $ 135.5 $ 134.8 $ 242.0 $ 257.8earnings

Diluted EPS, as $ 0.21 $ 0.30 $ 0.31 $ 0.33 $ 0.33 $ 0.50 $ 0.63reported

Adjustments toarrive at operatingEPS:

Merger-related 0.03 0.03 0.04 0.01 0.01 0.07 0.04expenses

Intangible asset - - 0.03 - - - -write-down

Gain on sale ofbranches, net of - - (0.01) - - - -expenses

Totaladjustments per 0.03 0.03 0.06 0.01 0.01 0.07 0.04common share

Operating EPS $ 0.24 $ 0.33 $ 0.37 $ 0.34 $ 0.34 $ 0.57 $ 0.67

Average total $ 61,841 $ 58,604 $ 56,130 $ 51,524 $ 51,088 $ 60,223 $ 49,453assets

Operating return on

average assets 0.65% 0.96% 1.13% 1.05% 1.06% 0.80% 1.04%(annualized)

(1) The sum of the quarterly amounts for certain line items may not equal thesix months amounts due to rounding.

OPERATING RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Three Months Ended Six Months Ended

June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30,

(dollars in 2020 2020 2019 2019 2019 2020 2019millions)

Operating earnings $ 101.0 $ 141.1 $ 158.8 $ 135.5 $ 134.8 $ 242.0 $ 257.8

Averagestockholders' $ 7,757 $ 7,804 $ 7,654 $ 7,079 $ 6,978 $ 7,781 $ 6,771equity

Less: Average 244 244 244 244 244 244 244preferred stock

Average common 7,513 7,560 7,410 6,835 6,734 7,537 6,527equity

Less: Averagegoodwill andaverage other

acquisition-related 3,273 3,269 3,226 3,069 3,043 3,271 2,972intangible assets

Average tangible $ 4,240 $ 4,291 $ 4,184 $ 3,766 $ 3,691 $ 4,266 $ 3,555common equity

Operating return onaverage tangible

common equity 9.5% 13.2% 15.2% 14.4% 14.6% 11.3% 14.5%(annualized)

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING COMMON DIVIDEND PAYOUT RATIO

Three Months Ended Six Months Ended

June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30,

(dollars in 2020 2020 2019 2019 2019 2020 (1) 2019millions)

Common dividends $ 75.5 $ 77.3 $ 69.9 $ 69.9 $ 69.8 $ 152.8 $ 135.0paid

Operating earnings $ 101.0 $ 141.1 $ 158.8 $ 135.5 $ 134.8 $ 242.0 $ 257.8

Operating commondividend payout 74.8% 54.8% 44.0% 51.6% 51.8% 63.1% 52.4%ratio

(1) The sum of the quarterly amounts for certain line items may not equal thesix months amounts due to rounding.

TANGIBLE COMMON EQUITY RATIO

June 30, March 31, Dec. 31, Sept. 30, June 30,

(dollars in 2020 2020 2019 2019 2019millions)

Total stockholders' $ 7,763 $ 7,726 $ 7,947 $ 7,131 $ 7,046equity

Less: Preferred 244 244 244 244 244stock

Common equity 7,519 7,482 7,703 6,887 6,802

Less: Goodwill andother

acquisition-related 3,254 3,264 3,275 3,065 3,073intangible assets

Tangible common $ 4,265 $ 4,218 $ 4,428 $ 3,822 $ 3,730equity

Total assets $ 61,510 $ 60,433 $ 58,590 $ 52,072 $ 51,622

Less: Goodwill andother

acquisition-related 3,254 3,264 3,275 3,065 3,073intangible assets

Tangible assets $ 58,256 $ 57,169 $ 55,315 $ 49,007 $ 48,549

Tangible common 7.3% 7.4% 8.0% 7.8% 7.7%equity ratio

TANGIBLE BOOK VALUE PER COMMON SHARE

June 30, March 31, Dec. 31, Sept. 30, June 30,

(in millions, exceptper common share 2020 2020 2019 2019 2019data)

Tangible common $ 4,265 $ 4,218 $ 4,428 $ 3,822 $ 3,730equity

Common shares 533.59 533.47 532.83 487.59 487.35issued

Less: Sharesclassified as 109.00 109.00 89.17 89.01 89.01treasury shares

Common shares 424.59 424.47 443.66 398.58 398.34oustanding

Less: Unallocated 5.75 5.84 5.92 6.01 6.10ESOP shares

Common shares 418.84 418.63 437.74 392.57 392.24

Tangible book value $ 10.18 $ 10.07 $ 10.12 $ 9.74 $ 9.51per common share

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SOURCE People's United Financial, Inc.