PR Newswire | Oct 22, 2020 04:02PM EDT

or $0.34 per Common Share

10/22 15:01 CDT

People's United Financial Reports Third Quarter Net Income of $144.6 Million, or $0.34 per Common Share- Pre-provision net revenue of $198.9 million, increased 4 percent linked-quarter and 15 percent from a year ago.- Efficiency ratio of 53.8 percent, improved 300 basis points year-over-year, reflecting continued thoughtful expense management and realization of projected cost savings from acquisitions.- Provision for credit losses on loans of $27.1 million, decreased $53.7 million linked-quarter, and further strengthens the allowance for credit losses to total loans by 3 basis points to 0.94 percent, or 0.99 percent excluding PPP loans.- Sale of People's United Insurance Agency to AssuredPartners announced; expected to close in the fourth quarter. BRIDGEPORT, Conn., Oct. 22, 2020

BRIDGEPORT, Conn., Oct. 22, 2020 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported results for the third quarter 2020. These results along with comparison periods are summarized below:

($ in millions, except per common sharedata)

Three Months Ended

Sep. 30, 2020 Jun. 30, 2020 Sep. 30, 2019

Net income $ $ $ 144.6 89.9 135.1

Net income available 141.1 86.4 131.6 to common shareholders

Per common share 0.34 0.21 0.33

Operating earnings^1 144.7 101.0 135.5

Per common share 0.34 0.24 0.34

Net interest income $ $ $ 391.4 405.6 348.7

Net interest margin 2.97% 3.05% 3.12%

Non-interest income 101.1 89.6 106.0

Non-interest expense $ $ $ 293.6 304.0 281.4

Operating non-interest 289.0 285.5 276.4expense^1

Efficiency ratio 53.8% 53.5% 56.8%

Average balances

Loans $ $ 45,153 $ 44,853 38,317

Deposits 49,542 48,447 38,657

Period-end balances

Loans 45,231 45,452 38,781

Deposits 49,637 49,934 38,574

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

"We are pleased with the Company's third quarter financial and operating performance, which is reflective of strong execution throughout the franchise," said Jack Barnes, Chairman and Chief Executive Officer. "Our employees have successfully adapted to the pandemic-driven environment and its many challenges. This has enabled them to effectively meet customer needs, introduce AlwaysChecking our new free digital identity protection service, and advance strategic initiatives. Specifically, we remain focused on investing in digital capabilities and we strengthened this commitment with the recent creation of the Business Transformation Office. This specialized unit will lead our efforts related to digitization, process automation, and Fintech relationships. We are excited about the enhancements and efficiencies this team will deliver moving forward."

Barnes continued, "The total impact of the pandemic on the long-term economy is unknown. However, improvements in economic activity during the quarter provide us a level of cautious optimism as we look ahead. We are particularly pleased with the significant reduction in customers needing relief as total loan deferrals were approximately $1.6 billion at September 30, down from more than $7.1 billion at the end of June. Our relationship managers have continued to maintain a high level of contact to help borrowers navigate their specific situations. We remain confident the strength of our long-held, conservative underwriting philosophy and approach to supporting customers will continue to serve the Company well."

"Third quarter operating earnings of $144.7 million, increased 43 percent linked-quarter and benefited from higher fee income, well-maintained expenses, reduced provision, and a lower effective tax rate," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "We remain disciplined managing deposit costs, which were down for the fifth consecutive quarter. Our net interest margin of 3.00%, excluding the unfavorable impact of PPP loans, was approximately five basis points lower from the second quarter, primarily due to downward pressure on loan yields. Commercial period-end loans grew $422 million or one percent from June 30 as a result of record mortgage warehouse balances and solid growth by LEAF. Conversely, retail period-end loans decreased $643 million or five percent mostly attributable to our planned reduction of residential mortgages. Period-end deposits were down $298 million or one percent linked-quarter as strong commercial growth was more than offset by runoff of higher cost wholesale funding and a decline in municipal balances."

As of and for the Three Months Ended

Sep. 30, 2020 Jun. 30, 2020 Sep. 30, 2019

Asset Quality

Net loan charge-offs 0.15% 0.08% 0.06% to average total loans

Non-performing loans 0.68% 0.65% 0.45% as a percentage of totalloans^1

Returns

Return on average assets^2 0.94% 0.58% 1.05%

Return on average tangible 13.1% 8.1% 14.0%common equity^2

Capital Ratios

People's United Financial,Inc.

Tangible common equity / 7.5% 7.3% 7.8%tangible assets

Tier 1 leverage 8.2% 8.0% 8.7%

Common equity tier 1 10.0% 9.8% 10.1%

Tier 1 risk-based 10.5% 10.3% 10.7%

Total risk-based 11.9% 11.8% 12.0%

People's United Bank, N.A.

Tier 1 leverage 8.7% 8.5% 8.8%

Common equity tier 1 11.1% 10.9% 10.8%

Tier 1 risk-based 11.1% 10.9% 10.8%

Total risk-based 12.3% 12.3% 12.2%

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

^2See Non-GAAP Financial Measures and Reconciliation to GAAP.

The Board of Directors declared a $0.18 per common share quarterly dividend payable November 15, 2020 to shareholders of record on November 2, 2020. Based on the closing stock price on October 21, 2020, the dividend yield on People's United Financial common stock is 6.8 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 approximately $61 billion in assets. Founded in 1842, People's United Bank offers commercial and retail banking through a network of more than 400 retail locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine, as well as wealth management solutions. The company also provides specialized commercial services to customers nationwide.

3Q 2020 Financial Highlights

Summary

* Net income totaled $144.6 million, or $0.34 per common share. * Net income available to common shareholders totaled $141.1 million. * Operating earnings totaled $144.7 million, or $0.34 per common share (see Non-GAAP Financial Measures and Reconciliation to GAAP).

* Net interest income totaled $391.4 million in 3Q20 compared to $405.6 million in 2Q20. * Net interest margin decreased eight basis points from 2Q20 to 2.97% reflecting: * Lower yields on the loan portfolio (decrease of 15 basis points). * Lower rates on deposits (increase of four basis points). * Lower rates on borrowings (increase of one basis point). * One additional calendar day in 3Q20 (increase of two basis points).

* Provision for credit losses on loans totaled $27.1 million. * Allowance for credit losses on loans increased $9.8 million. * Net loan charge-offs totaled $17.3 million. * Net loan charge-off ratio of 0.15% in 3Q20.

* Non-interest income totaled $101.1 million in 3Q20 compared to $89.6 million in 2Q20. * Bank service charges increased $4.2 million. * Commercial banking lending fees increased $2.1 million. * Investment management fees increased $1.4 million. * Customer interest rate swap income decreased $1.5 million. * At September 30, 2020, assets under discretionary management totaled $8.9 billion.

* Non-interest expense totaled $293.6 million in 3Q20 compared to $304.0 million in 2Q20. * Operating non-interest expense totaled $289.0 million in 3Q20 and $285.5 million in 2Q20 (see Non-GAAP Financial Measures and Reconciliation to GAAP). * Compensation and benefits expense, excluding $0.3 million and $1.0 million of merger-related expenses in 3Q20 and 2Q20, respectively, decreased $0.6 million. * Occupancy and equipment expense, excluding $0.9 million and $0.2 million of merger-related expenses in 3Q20 and 2Q20, respectively, increased $0.4 million. * Professional and outside services expense, excluding $1.4 million and $3.6 million of merger-related expenses in 3Q20 and 2Q20, respectively, increased $0.6 million. * Other non-interest expense includes merger-related expenses of $2.0 million in 3Q20 and $13.7 million in 2Q20. * The efficiency ratio was 53.8% for 3Q20 compared to 53.5% for 2Q20 and 56.8% for 3Q19 (see Non-GAAP Financial Measures and Reconciliation to GAAP).

* The effective income tax rate was 16.0% for 3Q20 and 18.7% for the first nine months of 2020, compared to 20.2% for the full-year of 2019.

Commercial Banking

* Commercial loans totaled $33.9 billion at September 30, 2020, a $422 million increase from June 30, 2020. * Paycheck Protection Plan loans totaled $2.6 billion at September 30, 2020. * The mortgage warehouse portfolio increased $768 million. * The equipment financing portfolio increased $7 million. * The New York multifamily portfolio decreased $62 million.

* Average commercial loans totaled $33.1 billion in 3Q20, a $225 million increase from 2Q20. * Paycheck Protection Plan loans averaged $2.5 billion in 3Q20. * The average mortgage warehouse portfolio increased $344 million. * The average equipment financing portfolio decreased $57 million. * The average New York multifamily portfolio decreased $62 million.

* Commercial deposits totaled $21.6 billion at September 30, 2020 compared to $21.0 billion at June 30, 2020. * The ratio of non-accrual commercial loans to total commercial loans was 0.65% at September 30, 2020 compared to 0.63% at June 30, 2020. * Non-performing commercial assets totaled $234.1 million at September 30, 2020 compared to $224.4 million at June 30, 2020. * For the commercial loan portfolio, the allowance for credit losses as a percentage of commercial loans was 0.86% at September 30, 2020 compared to 0.83% at June 30, 2020. * The commercial allowance for credit losses represented 132% of non-accrual commercial loans at September 30, 2020 compared to 131% at June 30, 2020.

Retail Banking

* Residential mortgage loans totaled $9.1 billion at September 30, 2020, a $528 million decrease from June 30, 2020. * Average residential mortgage loans totaled $9.4 billion in 3Q20, a $413 million decrease from 2Q20.

* Home equity loans totaled $2.1 billion at September 30, 2020, a $103 million decrease from June 30, 2020. * Average home equity loans totaled $2.2 billion in 3Q20, a $101 million decrease from 2Q20.

* Retail deposits totaled $28.0 billion at September 30, 2020 compared to $28.9 billion at June 30, 2020. * The ratio of non-accrual residential mortgage loans to residential mortgage loans was 0.69% at September 30, 2020 compared to 0.65% at June 30, 2020. * The ratio of non-accrual home equity loans to home equity loans was 1.04% at September 30, 2020 compared to 1.01% at June 30, 2020. * For the retail loan portfolio, the allowance for credit losses as a percentage of retail loans was 1.17% at September 30, 2020 compared to 1.14% at June 30, 2020. * The retail allowance for credit losses represented 155% of non-accrual retail loans at September 30, 2020 compared to 160% at June 30, 2020.

Conference CallOn October 22, 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

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

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

Earnings Data:

Net interest income (fully taxable equivalent) $ 398.7 $ 413.0 $ 403.7 $ 390.3 $ 356.0

Net interest income 391.4 405.6 396.0 382.7 348.7

Provision for credit losses (1) 26.8 80.8 33.5 7.3 7.8

Non-interest income (2) 101.1 89.6 123.8 124.2 106.0

Non-interest expense (2) 293.6 304.0 320.1 325.7 281.4

Income before income tax expense 172.1 110.4 166.2 173.9 165.5

Net income 144.6 89.9 130.4 137.5 135.1

Net income available to common shareholders (2) 141.1 86.4 126.9 134.0 131.6

Selected Statistical Data:

Net interest margin (3) 2.97 % 3.05 % 3.12 % 3.14 % 3.12 %

Return on average assets (2), (3) 0.94 0.58 0.89 0.98 1.05

Return on average common equity (3) 7.5 4.6 6.7 7.2 7.7

Return on average tangible common equity (2), (3) 13.1 8.1 11.8 12.8 14.0

Efficiency ratio (2) 53.8 53.5 54.0 53.7 56.8

Common Share Data:

Earnings per common share:

Basic $ 0.34 $ 0.21 $ 0.30 $ 0.31 $ 0.34

Diluted (2) 0.34 0.21 0.30 0.31 0.33

Dividends paid per common share 0.1800 0.1800 0.1775 0.1775 0.1775

Common dividend payout ratio (2) 53.6 % 87.4 % 60.9 % 52.2 % 53.1 %

Book value per common share $ 18.11 $ 17.95 $ 17.87 $ 17.60 $ 17.54

Tangible book value per common share (2) 10.37 10.18 10.07 10.12 9.74

Stock price:

High 12.36 13.99 17.00 17.22 17.10

Low 9.74 9.37 10.40 14.73 13.81

Close 10.31 11.57 11.05 16.90 15.64

Common shares outstanding (in millions) (2) 424.67 424.59 424.47 443.66 398.58

Weighted average diluted common shares (in millions) 420.29 420.15 429.77 424.98 394.45

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

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

(3) Annualized.

People's United Financial, Inc.

FINANCIAL HIGHLIGHTS

As of and for the

Nine Months Ended

September 30,

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

Earnings Data:

Net interest income (fully taxable equivalent) $ 1,215.4 $ 1,051.4

Net interest income 1,193.0 1,029.6

Provision for credit losses (1) 141.1 21.0

Non-interest income 314.5 306.9

Non-interest expense (2) 917.7 837.0

Income before income tax expense 448.7 478.5

Net income 364.9 383.0

Net income available to common shareholders (2) 354.4 372.5

Selected Statistical Data:

Net interest margin (3) 3.05 % 3.14 %

Return on average assets (2), (3) 0.80 1.02

Return on average common equity (3) 6.3 7.5

Return on average tangible common equity (2), (3) 11.0 13.7

Efficiency ratio (2) 53.8 56.6

Common Share Data:

Earnings per common share:

Basic $ 0.84 $ 0.97

Diluted (2) 0.84 0.96

Dividends paid per common share 0.5375 0.5300

Common dividend payout ratio (2) 64.5 % 55.0 %

Book value per common share $ 18.11 $ 17.54

Tangible book value per common share (2) 10.37 9.74

Stock price:

High 17.00 18.03

Low 9.37 13.81

Close 10.31 15.64

Common shares oustanding (in millions) (2) 424.67 398.58

Weighted average diluted common shares (in millions) 423.28 387.78

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

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

(3) Annualized.

People's United Financial, Inc.

FINANCIAL HIGHLIGHTS - Continued

As of and for the Three Months Ended

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

(dollars in millions) 2020 2020 2020 2019 2019

Financial Condition Data:

Total assets $ 60,871 $ 61,510 $ 60,433 $ 58,590 $ 52,072

Loans 45,231 45,452 44,284 43,596 38,781

Securities 8,270 8,233 8,552 7,790 7,135

Short-term investments 439 987 744 317 158

Allowance for credit losses (1) 424 414 342 247 246

Goodwill and other acquisition-related intangible assets 3,244 3,254 3,264 3,275 3,065

Deposits 49,637 49,934 44,741 43,590 38,574

Borrowings 1,237 1,782 5,911 5,155 4,629

Notes and debentures 1,012 1,015 1,013 993 916

Stockholders' equity 7,831 7,763 7,726 7,947 7,131

Total risk-weighted assets (2):

People's United Financial, Inc. 45,647 45,657 46,408 45,208 39,794

People's United Bank, N.A. 45,577 45,615 46,397 45,174 39,742

Non-accrual loans 306 296 240 224 176

Net loan charge-offs 17.3 8.5 10.6 6.7 5.8

Average Balances:

Loans $ 44,853 $ 45,153 $ 43,460 $ 42,006 $ 38,317

Securities (3) 7,922 8,240 8,022 7,372 7,041

Short-term investments 842 774 289 294 219

Total earning assets 53,617 54,168 51,772 49,673 45,577

Total assets 61,293 61,841 58,604 56,130 51,524

Deposits 49,542 48,447 44,163 42,195 38,657

Borrowings 1,283 2,911 4,353 4,146 3,855

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

Total funding liabilities 51,839 52,372 49,515 47,314 43,427

Stockholders' equity 7,801 7,757 7,804 7,654 7,079

Ratios:

Net loan charge-offs to average total loans (annualized) 0.15 % 0.08 % 0.10 % 0.06 % 0.06 %

Non-performing assets to total loans, real estate owned

and repossessed assets 0.71 0.69 0.59 0.57 0.52

Allowance for credit losses to (1):

Total loans 0.94 0.91 0.77 0.57 0.63

Non-accrual loans 138.4 139.8 142.2 110.0 139.5

Average stockholders' equity to average total assets 12.7 12.5 13.3 13.6 13.7

Stockholders' equity to total assets 12.9 12.6 12.8 13.6 13.7

Tangible common equity to tangible assets (4) 7.5 7.3 7.4 8.0 7.8

Total risk-based capital (2):

People's United Financial, Inc. 11.9 11.8 11.3 12.0 12.0

People's United Bank, N.A. 12.3 12.3 12.0 12.1 12.2

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

(2) September 30, 2020 amounts and ratios are preliminary.

(3) Average balances for securities are based on amortized cost.

(4) See Non-GAAP Financial Measures and Reconciliation to GAAP.

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF CONDITION

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

(in millions) 2020 2020 2019 2019

Assets

Cash and due from banks $ 616.8 $ 491.9 $ 484.2 $ 635.2

Short-term investments 438.6 987.4 316.8 157.8

Securities:

Trading debt securities, at fair value - - 7.1 9.3

Equity securities, at fair value 5.6 5.8 8.2 7.8

Debt securities available-for-sale, at fair value 4,080.7 4,080.3 3,564.3 2,978.7

Debt securities held-to-maturity, at amortized cost 3,916.5 3,848.6 3,869.2 3,805.4

Federal Home Loan Bank and Federal Reserve Bank stock, at cost 267.1 298.3 341.1 334.0

Total securities 8,269.9 8,233.0 7,789.9 7,135.2

Loans held-for-sale 21.4 12.2 511.3 24.8

Loans:

Commercial and industrial (1) 15,295.0 14,593.9 11,041.6 10,545.9

Commercial real estate (1) 13,713.3 13,999.5 14,762.3 12,186.9

Equipment financing 4,887.6 4,880.1 4,910.4 4,735.6

Total Commercial Portfolio 33,895.9 33,473.5 30,714.3 27,468.4

Residential mortgage 9,095.6 9,623.7 10,318.1 9,308.7

Home equity and other consumer 2,239.1 2,354.3 2,563.7 2,004.3

Total Retail Portfolio 11,334.7 11,978.0 12,881.8 11,313.0

Total loans 45,230.6 45,451.5 43,596.1 38,781.4

Less allowance for credit losses (423.8) (414.0) (246.6) (246.0)

Total loans, net 44,806.8 45,037.5 43,349.5 38,535.4

Goodwill and other acquisition-related intangible assets 3,243.5 3,253.7 3,274.6 3,064.9

Bank-owned life insurance 710.5 708.1 705.0 505.6

Premises and equipment, net 281.3 285.7 305.5 258.5

Other assets 2,482.4 2,500.2 1,853.0 1,754.4

Total assets $ 60,871.2 $ 61,509.7 $ 58,589.8 $ 52,071.8

Liabilities

Deposits:

Non-interest-bearing $ 14,101.9 $ 13,656.9 $ 9,803.7 $ 9,129.3

Savings 5,846.3 5,759.4 4,987.7 4,616.6

Interest-bearing checking and money market 23,361.8 22,943.6 19,592.6 16,727.2

Time 6,326.5 7,574.4 9,205.5 8,100.4

Total deposits 49,636.5 49,934.3 43,589.5 38,573.5

Borrowings:

Federal Home Loan Bank advances 579.8 1,289.7 3,125.4 2,948.5

Customer repurchase agreements 432.5 342.1 409.1 315.6

Federal funds purchased 225.0 150.0 1,620.0 1,365.0

Total borrowings 1,237.3 1,781.8 5,154.5 4,629.1

Notes and debentures 1,012.0 1,014.5 993.1 915.7

Other liabilities 1,153.9 1,016.1 905.5 822.8

Total liabilities 53,039.7 53,746.7 50,642.6 44,941.1

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 capital 7,657.3 7,651.2 7,639.4 6,901.5

Retained earnings 1,589.1 1,524.6 1,512.8 1,449.3

Accumulated other comprehensive loss (77.9) (73.9) (166.9) (182.3)

Unallocated common stock of Employee Stock Ownership Plan, at cost (117.4) (119.3) (122.9) (124.7)

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

Total stockholders' equity 7,831.5 7,763.0 7,947.2 7,130.7

Total liabilities and stockholders' equity $ 60,871.2 $ 61,509.7 $ 58,589.8 $ 52,071.8

(1) 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,at that time, from commercial real estate loans

to 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

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

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

Interest and dividend income:

Commercial real estate (1) $ 110.5 $ 122.4 $ 149.6 $ 147.2 $ 136.6

Commercial and industrial (1) 110.7 112.4 106.4 114.9 113.4

Equipment financing 65.4 67.6 68.2 66.7 65.3

Residential mortgage 82.1 84.8 90.4 88.2 84.7

Home equity and other consumer 19.9 20.1 28.0 30.8 24.7

Total interest on loans 388.6 407.3 442.6 447.8 424.7

Securities 47.5 49.8 51.2 47.8 44.7

Short-term investments 0.4 0.2 2.0 1.0 1.3

Loans held-for-sale 0.3 0.3 3.3 0.3 0.2

Total interest and dividend income 436.8 457.6 499.1 496.9 470.9

Interest expense:

Deposits 36.5 41.7 78.9 86.9 92.2

Borrowings 1.5 2.0 15.4 18.5 21.5

Notes and debentures 7.4 8.3 8.8 8.8 8.5

Total interest expense 45.4 52.0 103.1 114.2 122.2

Net interest income 391.4 405.6 396.0 382.7 348.7

Provision for credit losses on loans (2) 27.1 80.8 33.5 7.3 7.8

Provision for credit losses on securities (2) (0.3) - - - -

Net interest income after provision for credit losses 364.6 324.8 362.5 375.4 340.9

Non-interest income:

Bank service charges 24.5 20.3 28.0 28.9 27.0

Investment management fees 18.8 17.4 18.1 19.3 19.9

Commercial banking lending fees 12.7 10.6 12.1 12.9 11.8

Operating lease income 12.4 11.8 12.6 12.7 12.9

Insurance revenue 9.7 9.0 10.9 7.5 10.3

Cash management fees 8.8 8.1 7.4 7.1 7.3

Customer interest rate swap income, net 1.2 2.7 8.8 8.5 5.5

Other non-interest income (3) 13.0 9.7 25.9 27.3 11.3

Total non-interest income 101.1 89.6 123.8 124.2 106.0

Non-interest expense:

Compensation and benefits 166.5 167.8 173.9 171.4 158.1

Occupancy and equipment 49.1 48.0 51.0 52.2 45.0

Professional and outside services 24.1 25.7 38.5 29.6 23.7

Amortization of other acquisition-related intangible assets 10.2 10.2 10.7 9.8 8.0

Operating lease expense 9.3 8.8 9.8 9.6 9.9

Regulatory assessments 8.4 8.7 8.7 7.3 5.3

Other non-interest expense 26.0 34.8 27.5 45.8 31.4

Total non-interest expense (3) 293.6 304.0 320.1 325.7 281.4

Income before income tax expense 172.1 110.4 166.2 173.9 165.5

Income tax expense 27.5 20.5 35.8 36.4 30.4

Net income 144.6 89.9 130.4 137.5 135.1

Preferred stock dividend 3.5 3.5 3.5 3.5 3.5

Net income available to common shareholders $ 141.1 $ 86.4 $ 126.9 $ 134.0 $ 131.6

Earnings per common share:

Basic $ 0.34 $ 0.21 $ 0.30 $ 0.31 $ 0.34

Diluted 0.34 0.21 0.30 0.31 0.33

(1) 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, atthat time, from commercial real estate loans to

commercial and industrial loans. Prior period interest income amounts werenot restated to conform to the current presentation.

(2) Provision for credit losses in 2020 reflects the application of the CECLstandard and 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 $4.6 million, $18.5 million, $17.9million, $39.1 million and $5.0 million of non-operating

expenses for the three months ended September 30, 2020, June 30, 2020,March 31, 2020, December 31, 2019 and

September 30, 2019, respectively. See Non-GAAP Financial Measures andReconciliation to GAAP.

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF INCOME

Nine Months Ended

September 30,

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

Interest and dividend income:

Commercial real estate $ 382.5 $ 409.2

Commercial and industrial 329.5 328.7

Equipment financing 201.2 187.0

Residential mortgage 257.3 240.9

Home equity and other consumer 68.0 75.4

Total interest on loans 1,238.5 1,241.2

Securities 148.5 138.7

Loans held-for-sale 3.9 0.6

Short-term investments 2.6 3.8

Total interest and dividend income 1,393.5 1,384.3

Interest expense:

Deposits 157.1 270.0

Borrowings 18.9 58.6

Notes and debentures 24.5 26.1

Total interest expense 200.5 354.7

Net interest income 1,193.0 1,029.6

Provision for credit losses on loans (1) 141.4 21.0

Provision for credit losses on securities (1) (0.3) -

Net interest income after provision for credit losses 1,051.9 1,008.6

Non-interest income:

Bank service charges 72.8 78.6

Investment management fees 54.3 58.9

Operating lease income 36.8 38.1

Commercial banking lending fees 35.4 29.8

Insurance revenue 29.6 29.5

Cash management fees 24.3 21.2

Customer interest rate swap income, net 12.7 16.2

Other non-interest income 48.6 34.6

Total non-interest income 314.5 306.9

Non-interest expense:

Compensation and benefits 508.2 474.8

Occupancy and equipment 148.1 133.7

Professional and outside services 88.3 68.6

Amortization of other acquisition-related intangible assets 31.1 22.7

Operating lease expense 27.9 29.2

Regulatory assessments 25.8 18.8

Other non-interest expense 88.3 89.2

Total non-interest expense (2) 917.7 837.0

Income before income tax expense 448.7 478.5

Income tax expense 83.8 95.5

Net income 364.9 383.0

Preferred stock dividend 10.5 10.5

Net income available to common shareholders $ 354.4 $ 372.5

Earnings per common share:

Basic $ 0.84 $ 0.97

Diluted 0.84 0.96

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

impact of COVID-19.

(2) Total non-interest expense includes $41.0 million and $26.5 million ofnon-operating expenses for

the nine months ended September 30, 2020 and 2019, respectively. SeeNon-GAAP Financial

Measures and Reconciliation to GAAP.

People's United Financial, Inc.

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

September 30, 2020 June 30, 2020 September 30, 2019

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

(dollars in millions) Balance Interest Rate Balance Interest Rate Balance Interest Rate

Assets:

Short-term investments $ 841.5 $ 0.4 0.19% $ 774.0 $ 0.2 0.14% $ 218.7 $ 1.3 2.33%

Securities (2) 7,922.4 52.5 2.65 8,240.4 54.8 2.66 7,041.3 49.4 2.80

Loans:

Commercial real estate 13,853.1 110.5 3.19 14,095.2 122.4 3.48 12,194.8 136.6 4.48

Commercial and industrial 14,419.8 113.0 3.13 13,895.6 114.8 3.30 10,059.2 116.0 4.61

Equipment financing 4,876.4 65.4 5.37 4,933.8 67.6 5.48 4,640.6 65.3 5.63

Residential mortgage 9,408.0 82.4 3.51 9,821.4 85.1 3.46 9,392.7 84.9 3.62

Home equity and other consumer 2,296.0 19.9 3.47 2,407.1 20.1 3.34 2,029.2 24.7 4.88

Total loans 44,853.3 391.2 3.49 45,153.1 410.0 3.63 38,316.5 427.5 4.46

Total earning assets 53,617.2 $ 444.1 3.31% 54,167.5 $ 465.0 3.43% 45,576.5 $ 478.2 4.20%

Other assets 7,676.2 7,673.9 5,947.8

Total assets $ 61,293.4 $ 61,841.4 $ 51,524.3

Liabilities and stockholders' equity:

Deposits:

Non-interest-bearing $ 13,753.8 $ - - % $ 12,852.8 $ - - % $ 8,777.3 $ - - %

Savings, interest-bearing checking

and money market 28,970.0 16.4 0.23 27,402.5 17.0 0.25 21,758.5 53.4 0.98

Time 6,817.8 20.1 1.18 8,191.4 24.7 1.21 8,121.6 38.8 1.91

Total deposits 49,541.6 36.5 0.29 48,446.7 41.7 0.34 38,657.4 92.2 0.95

Borrowings:

Federal Home Loan Bank advances 640.5 1.3 0.79 1,858.8 1.5 0.32 2,363.0 14.1 2.39

Customer repurchase agreements 382.6 0.2 0.18 357.2 0.2 0.24 290.1 0.6 0.86

Federal funds purchased 260.1 - 0.08 695.5 0.3 0.15 1,202.3 6.8 2.26

Total borrowings 1,283.2 1.5 0.46 2,911.5 2.0 0.27 3,855.4 21.5 2.23

Notes and debentures 1,014.0 7.4 2.92 1,013.8 8.3 3.29 913.8 8.5 3.73

Total funding liabilities 51,838.8 $ 45.4 0.35% 52,372.0 $ 52.0 0.40% 43,426.6 $ 122.2 1.13%

Other liabilities 1,653.3 1,712.6 1,019.1

Total liabilities 53,492.1 54,084.6 44,445.7

Stockholders' equity 7,801.3 7,756.8 7,078.6

Total liabilities and

stockholders' equity $ 61,293.4 $ 61,841.4 $ 51,524.3

Net interest income/spread (3) $ 398.7 2.96% $ 413.0 3.03% $ 356.0 3.07%

Net interest margin 2.97% 3.05% 3.12%

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

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

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

September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

People's United Financial, Inc.

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

September 30, 2020 September 30, 2019

Nine months ended Average Yield Average Yield / /

(dollars in millions) Balance Interest Rate Balance Interest Rate

Assets:

Short-term investments $ 635.9 $ 2.6 0.55% $ 211.9 $ 3.8 2.37%

Securities (2) 8,061.0 163.3 2.70 7,165.4 152.6 2.84

Loans:

Commercial real estate 14,219.8 382.5 3.59 12,037.6 409.2 4.53

Commercial and industrial 13,065.7 337.6 3.44 9,561.1 336.6 4.69

Equipment financing 4,908.5 201.2 5.47 4,504.1 187.0 5.54

Residential mortgage 9,820.4 258.0 3.50 9,077.5 241.5 3.55

Home equity and other consumer 2,475.7 70.7 3.81 2,029.1 75.4 4.95

Total loans 44,490.1 1,250.0 3.75 37,209.4 1,249.7 4.48

Total earning assets 53,187.0 $ 1,415.9 3.55% 44,586.7 $ 1,406.1 4.20%

Other assets 7,395.1 5,564.3

Total assets $ 60,582.1 $ 50,151.0

Liabilities and stockholders' equity:

Deposits:

Non-interest-bearing $ 12,233.7 $ - % $ 8,563.2 $ - - % -

Savings, interest-bearing checking

and money market 27,111.2 77.5 0.38 21,708.6 159.6 0.98

Time 8,046.8 79.6 1.32 7,842.4 110.4 1.88

Total deposits 47,391.7 157.1 0.44 38,114.2 270.0 0.94

Borrowings:

Federal Home Loan Bank advances 1,639.6 12.6 1.02 2,034.1 38.7 2.54

Federal funds purchased 847.7 5.4 0.85 1,005.6 18.2 2.41

Customer repurchase agreements 356.0 0.9 0.35 272.1 1.6 0.76

Other borrowings - - - 4.4 0.1 1.86

Total borrowings 2,843.3 18.9 0.89 3,316.2 58.6 2.35

Notes and debentures 1,009.1 24.5 3.24 904.7 26.1 3.85

Total funding liabilities 51,244.1 $ 200.5 0.52% 42,335.1 $ 354.7 1.12%

Other liabilities 1,550.5 941.0

Total liabilities 52,794.6 43,276.1

Stockholders' equity 7,787.5 6,874.9

Total liabilities and

stockholders' equity $ 60,582.1 $ 50,151.0

Net interest income/spread (3) $ 1,215.4 3.03% $ 1,051.4 3.08%

Net interest margin 3.05% 3.14%

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

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

(3) The fully taxable equivalent adjustment was $22.4 million and $21.8 millionfor the nine months

ended September 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

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

(dollars in millions) 2020 2020 2020 2019 2019

Non-accrual loans:

Commercial:

Commercial real estate $ 85.3 $ 73.6 $ 53.5 $ 53.8 $ 28.6

Commercial and industrial 86.7 88.8 55.6 38.5 39.0

Equipment financing 49.0 48.6 42.5 47.7 43.2

Total Commercial 221.0 211.0 151.6 140.0 110.8

Retail:

Residential mortgage 62.9 62.6 66.6 63.3 48.8

Home equity 22.1 22.5 22.1 20.8 16.7

Other consumer 0.2 0.1 0.1 - 0.1

Total Retail 85.2 85.2 88.8 84.1 65.6

Total non-accrual loans (1) 306.2 296.2 240.4 224.1 176.4

Real estate owned:

Commercial 3.6 7.3 7.3 7.3 7.7

Residential 1.9 4.9 9.5 11.9 12.3

Total real estate owned 5.5 12.2 9.5 11.9 12.3

Repossessed assets 9.7 6.2 4.6 4.2 6.3

Total non-performing assets $ 321.4 $ 314.6 $ 254.5 $ 240.2 $ 195.0

Non-accrual loans as a percentage of total loans 0.68 % 0.65 % 0.54 % 0.51 % 0.45 %

Non-performing assets as a percentage of:

Total loans, real estate owned and repossessed assets 0.71 0.69 0.59 0.57 0.52

Tangible stockholders' equity and allowance

for credit losses 6.41 6.39 5.45 5.03 4.70

(1) Reported net of government guarantees totaling $2.4 million at September30, 2020, $2.9 million at June 30, 2020,

$1.2 million at March 31, 2020, $1.3 million at December 31, 2019 and$1.4 million at September 30, 2019.

People's United Financial, Inc.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

Three Months Ended

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

(dollars in millions) 2020 2020 2020 2019 2019

Allowance for credit losses:

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

Charge-offs (19.3) (10.3) (12.6) (8.5) (8.2)

Recoveries 2.0 1.8 2.0 1.8 2.4

Net loan charge-offs (17.3) (8.5) (10.6) (6.7) (5.8)

Provision for credit losses 27.1 80.8 33.5 7.3 7.8

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

Balance at end of period $ 423.8 $ 414.0 $ 341.7 $ 246.6 $ 246.0

Allowance for credit losses as a percentage of:

Total loans 0.94 % 0.91 % 0.77 % 0.57 % 0.63 %

Non-accrual loans 138.4 139.8 142.2 110.0 139.5

N/A - not applicable

NET LOAN CHARGE-OFFS (RECOVERIES)

Three Months Ended

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

(dollars in millions) 2020 2020 2020 2019 2019

Commercial:

Commercial real estate $ 4.1 $ 1.8 $ 3.4 $ (0.1) $ (0.2)

Commercial and industrial 6.9 - 1.0 2.3 1.6

Equipment financing 6.2 5.2 3.9 4.2 4.2

Total 17.2 7.0 8.3 6.4 5.6

Retail:

Residential mortgage (0.2) - 0.8 (0.2) -

Home equity - 0.6 0.1 0.3 -

Other consumer 0.3 0.9 1.4 0.2 0.2

Total 0.1 1.5 2.3 0.3 0.2

Total net loan charge-offs $ 17.3 $ 8.5 $ 10.6 $ 6.7 $ 5.8

Net loan charge-offs to

average total loans (annualized) 0.15 % 0.08 % 0.10 % 0.06 % 0.06 %

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP

In addition to evaluating People's United Financial Inc. ("People's United")results of operations in accordance with U.S. generally accepted accountingprinciples ("GAAP"), management routinely supplements its evaluation with ananalysis of certain non-GAAP financial measures, such as the efficiency andtangible 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 common shareholdersthose items that management considers to be of such a non-recurring orinfrequent nature that, by excluding such items (net of income taxes), People'sUnited's results can be measured and assessed on a more consistent basis fromperiod to period. Items excluded from operating earnings, which include, butare not limited to: (i) non-recurring gains/losses; (ii) merger-relatedexpenses, including acquisition integration and other costs; (iii) writedownsof banking house assets and related lease termination costs; (iv)severance-related costs; and (v) charges related to executive-level managementseparation costs, are generally also excluded when calculating the efficiencyratio. Operating earnings per common share ("EPS") is derived by determiningthe per common share impact of the respective adjustments to arrive atoperating earnings and adding (subtracting) such amounts to (from) diluted EPS,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 financialinstitutions.

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING NON-INTEREST EXPENSE AND EFFICIENCY RATIO

Three Months Ended Nine Months Ended

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

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

Total non-interest expense $ 293.6 $ 304.0 $ 320.1 $ 325.7 $ 281.4 $ 917.7 $ 837.0

Adjustments to arrive at operating

non-interest expense:

Merger-related expenses (4.6) (18.5) (17.9) (22.6) (5.0) (41.0) (26.5)

Intangible asset write-down - - - (16.5) - - -

Total (4.6) (18.5) (17.9) (39.1) (5.0) (41.0) (26.5)

Operating non-interest expense 289.0 285.5 302.2 286.6 276.4 876.7 810.5

Adjustments:

Amortization of other acquisition-related

intangible assets (10.2) (10.2) (10.7) (9.8) (8.0) (31.1) (22.7)

Operating lease expense (9.3) (8.8) (9.8) (9.6) (9.9) (27.9) (29.2)

Other (1) (5.1) (1.9) (1.9) (1.6) (1.4) (8.9) (4.6)

Total non-interest expense for

efficiency ratio $ 264.4 $ 264.6 $ 279.8 $ 265.6 $ 257.1 $ 808.8 $ 754.0

Net interest income (FTE basis) $ 398.7 $ 413.0 $ 403.7 $ 390.3 $ 356.0 $ 1,215.4 $ 1,051.4

Total non-interest income 101.1 89.6 123.8 124.2 106.0 314.5 306.9

Total revenues 499.8 502.6 527.5 514.5 462.0 1,529.9 1,358.3

Adjustments:

Operating lease expense (9.3) (8.8) (9.8) (9.6) (9.9) (27.9) (29.2)

BOLI FTE adjustment 0.8 1.0 0.8 0.7 0.5 2.6 1.8

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

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

Other (2) (0.1) - (0.3) (3.2) 0.1 (0.4) 0.4

Total revenues for efficiency ratio $ 491.2 $ 494.8 $ 518.2 $ 494.7 $ 452.7 $ 1,504.2 $ 1,331.2

Efficiency ratio 53.8% 53.5% 54.0% 53.7% 56.8% 53.8% 56.6%

(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 Nine Months Ended

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

(in millions) 2020 2020 2020 2019 2019 2020 2019

Net interest income $ 391.4 $ 405.6 $ 396.0 $ 382.7 $ 348.7 $ 1,193.0 $ 1,029.6

Non-interest income 101.1 89.6 123.8 124.2 106.0 314.5 306.9

Non-interest expense (293.6) (304.0) (320.1) (325.7) (281.4) (917.7) (837.0)

Pre-provision net revenue 198.9 191.2 199.7 181.2 173.3 589.8 499.5

Non-operating income - - - (7.6) - - -

Non-operating expense 4.6 18.5 17.9 39.1 5.0 41.0 26.5

Operating pre-provision net revenue $ 203.5 $ 209.7 $ 217.6 $ 212.7 $ 178.3 $ 630.8 $ 526.0

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING EARNINGS

Three Months Ended Nine Months Ended

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

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

Net income available to common shareholders $ 141.1 $ $ 126.9 $ 134.0 $ 131.6 $ 354.4 $ 372.5 86.4

Adjustments to arrive at operating earnings:

Merger-related expenses 4.6 18.5 17.9 22.6 5.0 41.0 26.5

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

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

Total pre-tax adjustments 4.6 18.5 17.9 31.5 5.0 41.0 26.5

Tax effect (1.0) (3.9) (3.7) (6.7) (1.1) (8.6) (5.6)

Total adjustments, net of tax 3.6 14.6 14.2 24.8 3.9 32.4 20.9

Operating earnings $ 144.7 $ 101.0 $ 141.1 $ 158.8 $ 135.5 $ 386.8 $ 393.4

Diluted EPS, as reported $ 0.34 $ $ $ $ 0.33 $ 0.84 $ 0.96 0.21 0.30 0.31

Adjustments to arrive at operating EPS:

Merger-related expenses - 0.03 0.03 0.04 0.01 0.07 0.05

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

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

Total adjustments per common share - 0.03 0.03 0.06 0.01 0.07 0.05

Operating EPS $ 0.34 $ $ $ $ 0.34 $ 0.91 $ 1.01 0.24 0.33 0.37

Average total assets $ 61,293 $ 61,841 $ 58,603 $ 56,130 $ 51,524 $ 60,582 $ 50,151

Operating return on

average assets (annualized) 0.94% 0.65% 0.96% 1.13% 1.05% 0.85% 1.05%

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

OPERATING RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Three Months Ended Nine Months Ended

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

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

Operating earnings $ 144.7 $ 101.0 $ 141.1 $ 158.8 $ 135.5 $ 386.8 $ 393.4

Average stockholders' equity $ 7,801 $ 7,757 $ 7,804 $ 7,654 $ 7,079 $ 7,788 $ 6,875

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

Average common equity 7,557 7,513 7,560 7,410 6,835 7,544 6,631

Less: Average goodwill and average other

acquisition-related intangible assets 3,249 3,259 3,269 3,226 3,069 3,259 3,005

Average tangible common equity $ 4,308 $ 4,254 $ 4,291 $ 4,184 $ 3,766 $ 4,285 $ 3,626

Operating return on average tangible

common equity (annualized) 13.4% 9.5% 13.2% 15.2% 14.4% 12.0% 14.5%

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING COMMON DIVIDEND PAYOUT RATIO

Three Months Ended Nine Months Ended

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

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

Common dividends paid $ 75.7 $ 75.5 $ 77.3 $ 69.9 $ 69.9 $ 228.5 $ 204.9

Operating earnings $ 144.7 $ 101.0 $ 141.1 $ 158.8 $ 135.5 $ 386.8 $ 393.4

Operating common dividend payout ratio 52.3% 74.8% 54.8% 44.0% 51.6% 59.1% 52.1%

TANGIBLE COMMON EQUITY RATIO

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

(dollars in millions) 2020 2020 2020 2019 2019

Total stockholders' equity $ 7,831 $ 7,763 $ 7,726 $ 7,947 $ 7,131

Less: Preferred stock 244 244 244 244 244

Common equity 7,587 7,519 7,482 7,703 6,887

Less: Goodwill and other

acquisition-related intangible assets 3,244 3,254 3,264 3,275 3,065

Tangible common equity $ 4,343 $ 4,265 $ 4,218 $ 4,428 $ 3,822

Total assets $ 60,871 $ 61,510 $ 60,433 $ 58,590 $ 52,072

Less: Goodwill and other

acquisition-related intangible assets 3,244 3,254 3,264 3,275 3,065

Tangible assets $ 57,627 $ 58,256 $ 57,169 $ 55,315 $ 49,007

Tangible common equity ratio 7.5% 7.3% 7.4% 8.0% 7.8%

TANGIBLE BOOK VALUE PER COMMON SHARE

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

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

Tangible common equity $ 4,343 $ 4,265 $ 4,218 $ 4,428 $ 3,822

Common shares issued 533.67 533.59 533.47 532.83 487.59

Less: Shares classified as treasury shares 109.00 109.00 109.00 89.17 89.01

Common shares oustanding 424.67 424.59 424.47 443.66 398.58

Less: Unallocated ESOP shares 5.66 5.75 5.84 5.92 6.01

Common shares 419.01 418.84 418.63 437.74 392.57

Tangible book value per common share $ 10.36 $ 10.18 $ 10.07 $ 10.12 $ 9.74

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SOURCE People's United Financial, Inc.