PR Newswire | Jan 21, 2021 04:30PM EST

or $0.49 per Common Share

01/21 15:29 CST

People's United Financial Reports Fourth Quarter Net Income of $207.7 Million, or $0.49 per Common ShareOperating Earnings of $0.35 per Common Share- Sustained excellent asset quality as evidenced by net loan charge-offs to average total loans of 12 basis points and provision for credit losses of $14.7 million, both of which improved from the third quarter.- Increased period-end deposits $2.5 billion or 5 percent from September 30, primarily due to continued strong growth in non-interest bearing balances.- Completed the sale of People's United Insurance Agency on November 2; realized a pre-tax gain, net of expenses, of $75.9 million or $0.14 per common share. BRIDGEPORT, Conn., Jan. 21, 2021

BRIDGEPORT, Conn., Jan. 21, 2021 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported results for the fourth quarter and full year 2020. These results along with comparison periods are summarized below:

($ in millions, except per common share data)

Three Months Ended Twelve Months Ended

Dec. 31, 2020 Sep. 30, 2020 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2019

Net income $ 207.7 $ 144.6 $ 137.5 $ 572.6 $ 520.4

Net incomeavailable 204.2 141.1 134.0 558.5 506.3 to common shareholders

Per common 0.49 0.34 0.31 1.32 1.27 share

Operating 147.7 144.7 158.8 534.6 552.1earnings^1

Per common 0.35 0.34 0.37 1.27 1.39 share

Net interest $ 382.8 $ 391.4 $ 382.7 $ 1,575.8 $ 1,412.3income

Net interest 2.84% 2.97% 3.14% 2.99% 3.14% margin

Non-interest 178.2 101.1 124.2 492.7 431.1income

Operatingnon-interest 102.3 101.1 116.6 416.8 423.5income^1

Non-interest $ 293.4 $ 293.6 $ 325.7 $ 1,211.1 $ 1,162.7expense

Operatingnon-interest 288.5 289.0 286.6 1,165.2 1,097.1expense^1

Efficiency 55.5% 53.8% 53.7% 54.2% 55.8%ratio

Averagebalances

Loans $ 44,061 $ 44,853 $ 42,006 $ 44,382 $ 38,419

Deposits 50,674 49,542 42,195 48,217 39,143

Period-endbalances

Loans 43,869 45,231 43,596

Deposits 52,138 49,637 43,590

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

"We are pleased with our performance in 2020, especially in light of the uncertain economic environment caused by the pandemic," said Jack Barnes, Chairman and Chief Executive Officer. "Full year financial and operating results were strong and reflect the resilience of People's United, its employees and customers. Pre-provision net revenue of $827 million, on an operating basis, increased 12 percent from the prior year, reflecting the success of recent acquisitions and solid execution across core operations. Higher revenues and continued emphasis on controlling costs lowered the efficiency ratio 160 basis points to 54.2 percent, marking the seventh consecutive year of improvement. Asset quality remained excellent, indicative of the Company's conservative approach to underwriting, diversified loan portfolio, and deep customer relationships. We are particularly pleased by the continued reduction in loan deferrals, which ended the year at $271 million or 0.6 percent of total loans, down from $1.6 billion or 3.5 percent of total loans at the close of the third quarter."

Barnes continued, "As consumer preferences evolve to more digitally-driven experiences, we have continually enhanced our technology capabilities to deliver value, provide convenience and create efficiencies. As a result, customers are increasingly utilizing our online and mobile platforms for their banking needs. Given these accelerating digital banking trends and shifts in retail shopping behavior, we announced today the decision not to renew our existing in-store branch contracts with Stop & Shop in Connecticut and New York upon expiration in 2022. This decision enables us to further optimize our branch network, while providing the same level of personalized service across each of our channels."

"We concluded the year with a solid financial performance in the fourth quarter," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "Operating earnings of $147.7 million increased two percent linked-quarter and benefited from a lower provision, higher fee income and well-controlled expenses. Net interest margin of 2.84 percent was 13 basis points lower than the third quarter, primarily due to increased excess liquidity and lower yields in both the loan and securities portfolios. These headwinds were partially offset by our continued discipline managing deposit pricing as costs declined for the sixth consecutive quarter. The loan-to-deposit ratio at quarter-end was 84 percent as loans decreased nearly $1.4 billion or three percent from September 30, while deposits grew $2.5 billion or five percent. The decline in period-end loans was primarily driven by $715 million in lower retail balances, $289 million in forgiven PPP loans, and a combined $107 million reduction in our runoff portfolios. Conversely, we continued to achieve strong growth in our mortgage warehouse and LEAF businesses. Period-end deposit growth reflected a $1.8 billion increase in non-interest bearing balances, partially offset by the roll-off of higher cost time deposits."

As of and for the Three Months Ended

Dec. 31, 2020 Sep. 30, 2020 Dec. 31, 2019

Asset Quality

Net loan charge-offs 0.12% 0.15% 0.06% to average total loans

Non-performing loans 0.75% 0.68% 0.51% as a percentage of totalloans^1

Returns

Return on average assets^2 1.33% 0.94% 0.98%

Return on average tangible 18.4% 13.1% 12.8%common equity^2

Capital Ratios

People's United Financial,Inc.

Tangible common equity / 7.5% 7.5% 8.0%tangible assets

Tier 1 leverage 8.4% 8.2% 9.1%

Common equity tier 1 10.5% 9.9% 10.2%

Tier 1 risk-based 11.0% 10.5% 10.7%

Total risk-based 12.4% 11.8% 12.0%

People's United Bank, N.A.

Tier 1 leverage 8.7% 8.7% 9.3%

Common equity tier 1 11.5% 11.0% 10.9%

Tier 1 risk-based 11.5% 11.0% 10.9%

Total risk-based 12.8% 12.3% 12.1%

^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 February 15, 2021 to shareholders of record on February 1, 2021. Based on the closing stock price on January 20, 2021, the dividend yield on People's United Financial common stock is 5.0 percent.

The Company is currently in the process of performing its annual goodwill impairment assessment. Additional time is necessary to complete the analysis given the complexities brought about by the macroeconomic effects of the Covid-19 pandemic, particularly the current and projected low interest rate environment and a decline in bank stock valuations last fall, including on the date of the Company's annual assessment (October 1st). Any potential goodwill impairment charge could be material to reported earnings, but would represent a non-cash charge and have no effect on the Company's cash balances, liquidity or tangible equity. In addition, because goodwill and other intangible assets are not included in the calculation of regulatory capital, the Company's well-capitalized regulatory capital ratios would not be affected by this potential non-cash expense. The analysis will be completed prior to filing the Annual Report on Form 10-K with the Securities and Exchange Commission.

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 $63 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.

4Q 2020 Financial Highlights

Summary

* Net income totaled $207.7 million, or $0.49 per common share. * Net income available to common shareholders totaled $204.2 million.

* Operating earnings totaled $147.7 million, or $0.35 per common share (See Non-GAAP Financial Measures and Reconciliation to GAAP). * Net interest income totaled $382.8 million in 4Q20 compared to $391.4 million in 3Q20. * Net interest margin decreased 13 basis points from 3Q20 to 2.84% reflecting: * Excess liquidity resulting from deposits at the Federal Reserve Bank (decrease of nine basis points). * Lower yields on the loan and securities portfolios (decrease of nine basis points). * Lower rates on deposits (increase of five basis points).

* Provision for credit losses on loans totaled $14.7 million. * Allowance for credit losses on loans increased $1.3 million. * Net loan charge-offs totaled $13.4 million. * Net loan charge-off ratio of 0.12% in 4Q20.

* Non-interest income totaled $178.2 million in 4Q20 compared to $101.1 million in 3Q20. * Commercial banking lending fees increased $2.8 million. * Customer interest rate swap income increased $1.0 million. * Insurance revenue decreased $5.6 million. * Included in non-interest income in 4Q20 is a $75.9 million net gain on the sale of People's United Insurance Agency (See Non-GAAP Financial Measures and Reconciliation to GAAP). * At December 31, 2020, assets under discretionary management totaled $9.5 billion.

* Non-interest expense totaled $293.4 million in 4Q20 compared to $293.6 million in 3Q20. * Operating non-interest expense totaled $288.5 million in 4Q20 and $289.0 million in 3Q20 (See Non-GAAP Financial Measures and Reconciliation to GAAP). * Compensation and benefits expense, excluding $0.3 million of merger-related expenses in 3Q20, increased $0.4 million. * Occupancy and equipment expense, excluding $0.3 million and $0.9 million of merger-related expenses in 4Q20 and 3Q20, respectively, increased $2.4 million. * Professional and outside services expense, excluding $0.8 million and $1.4 million of merger-related expenses in 4Q20 and 3Q20, respectively, increased $1.4 million. * Regulatory assessment expense decreased $1.5 million. * Other non-interest expense includes merger-related expenses of $3.8 million in 4Q20 and $2.0 million in 3Q20. * The efficiency ratio was 55.5% for 4Q20 compared to 53.8% for 3Q20 and 53.7% for 4Q19 (See Non-GAAP Financial Measures and Reconciliation to GAAP).

* The effective income tax rate was 17.9% for 4Q20 and 18.4% for the full-year of 2020, compared to 20.2% for the full-year of 2019. * The 4Q20 and full-year 2020 effective tax rates reflect a $7.1 million benefit related to the revaluation of certain state deferred tax assets.

Commercial Banking

* Commercial loans totaled $33.2 billion at December 31, 2020, a $647 million decrease from September 30, 2020. * Paycheck Protection Plan loans totaled $2.3 billion at December 31, 2020, a $289 million decrease from September 30, 2020. * The mortgage warehouse portfolio increased $161 million. * The New York multifamily portfolio decreased $47 million. * The equipment financing portfolio decreased $42 million.

* Average commercial loans totaled $33.1 billion in 4Q20, an $86 million decrease from 3Q20. * Paycheck Protection Plan loans averaged $2.5 billion in 4Q20, a $69 million decrease from 3Q20. * The average mortgage warehouse portfolio increased $455 million. * The average New York multifamily portfolio decreased $53 million. * The average equipment financing portfolio decreased $9 million.

* Commercial deposits totaled $22.9 billion at December 31, 2020 compared to $21.6 billion at September 30, 2020. * The ratio of non-accrual commercial loans to total commercial loans was 0.74% at December 31, 2020 compared to 0.65% at September 30, 2020. * Non-performing commercial assets totaled $255.2 million at December 31, 2020 compared to $234.1 million at September 30, 2020. * For the commercial loan portfolio, the allowance for credit losses as a percentage of commercial loans was 0.91% at December 31, 2020 compared to 0.86% at September 30, 2020. * The commercial allowance for credit losses represented 123% of non-accrual commercial loans at December 31, 2020 compared to 132% at September 30, 2020.

Retail Banking

* Residential mortgage loans totaled $8.5 billion at December 31, 2020, a $577 million decrease from September 30, 2020. * Average residential mortgage loans totaled $8.8 billion in 4Q20, a $587 million decrease from 3Q20.

* Home equity loans totaled $2.0 billion at December 31, 2020, a $128 million decrease from September 30, 2020. * Average home equity loans totaled $2.1 billion in 4Q20, a $110 million decrease from 3Q20.

* Retail deposits totaled $29.2 billion at December 31, 2020 compared to $28.0 billion at September 30, 2020. * The ratio of non-accrual residential mortgage loans to residential mortgage loans was 0.73% at December 31, 2020 compared to 0.69% at September 30, 2020. * The ratio of non-accrual home equity loans to home equity loans was 1.03% at December 31, 2020 compared to 1.04% at September 30, 2020. * For the retail loan portfolio, the allowance for credit losses as a percentage of retail loans was 1.14% at December 31, 2020 compared to 1.17% at September 30, 2020. * The retail allowance for credit losses represented 146% of non-accrual retail loans at December 31, 2020 compared to 155% at September 30, 2020.

Conference Call

On January 21, 2021, 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; (11) the outcome of the ongoing goodwill impairment analysis; and (12) 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

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

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

Earnings Data:

Net interest income (fully taxable $ 390.2 $ 398.7 $ 413.0 $ 403.7 $ 390.3equivalent)

Net interest income 382.8 391.4 405.6 396.0 382.7

Provision for credit losses (1) 14.7 26.8 80.8 33.5 7.3

Non-interest income (2) 178.2 101.1 89.6 123.8 124.2

Non-interest expense (2) 293.4 293.6 304.0 320.1 325.7

Income before income tax expense 252.9 172.1 110.4 166.2 173.9

Net income 207.7 144.6 89.9 130.4 137.5

Net income available to common 204.2 141.1 86.4 126.9 134.0shareholders (2)

Selected Statistical Data:

Net interest margin (3) 2.84 % 2.97 % 3.05 % 3.12 % 3.14

Return on average assets (2), (3) 1.33 0.94 0.58 0.89 0.98

Return on average common equity 10.7 7.5 4.6 6.7 7.2(3)

Return on average tangible common 18.4 13.1 8.1 11.8 12.8equity (2), (3)

Efficiency ratio (2) 55.5 53.8 53.5 54.0 53.7

Common Share Data:

Earnings per common share:

Basic $ 0.49 $ 0.34 $ 0.21 $ 0.30 $ 0.31

Diluted (2) 0.49 0.34 0.21 0.30 0.31

Dividends paid per common share 0.1800 0.1800 0.1800 0.1775 0.1775

Common dividend payout ratio (2) 37.1 % 53.6 % 87.4 % 60.9 % 52.2

Book value per common share $ 18.40 $ 18.11 $ 17.95 $ 17.87 $ 17.60

Tangible book value per common 10.77 10.37 10.18 10.07 10.12share (2)

Stock price:

High 13.58 12.36 13.99 17.00 17.22

Low 9.98 9.74 9.37 10.40 14.73

Close 12.93 10.31 11.57 11.05 16.90

Common shares outstanding (in 424.68 424.67 424.59 424.47 443.66millions) (2)

Weighted average diluted common 420.39 420.29 420.15 429.77 424.98shares (in millions)

(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 andReconciliation to GAAP.

(3) Annualized.

People's United Financial, Inc.

FINANCIAL HIGHLIGHTS

As of and for the

Twelve Months Ended

December 31,

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

Earnings Data:

Net interest income (fully taxable equivalent) $ 1,605.6 $ 1,441.7

Net interest income 1,575.8 1,412.3

Provision for credit losses (1) 155.8 28.3

Non-interest income (2) 492.7 431.1

Non-interest expense (2) 1,211.1 1,162.5

Income before income tax expense 701.6 652.4

Net income 572.6 520.4

Net income available to common shareholders (2) 558.5 506.3

Selected Statistical Data:

Net interest margin 2.99 % 3.14 %

Return on average assets (2) 0.94 1.01

Return on average common equity 7.4 7.4

Return on average tangible common equity (2) 12.9 13.4

Efficiency ratio (2) 54.2 55.8

Common Share Data:

Earnings per common share:

Basic $ 1.33 $ 1.28

Diluted (2) 1.32 1.27

Dividends paid per common share 0.7175 0.7075

Common dividend payout ratio (2) 54.5 % 54.3 %

Book value per common share $ 18.40 $ 17.60

Tangible book value per common share (2) 10.77 10.12

Stock price:

High 17.00 18.03

Low 9.37 13.81

Close 12.93 16.90

Common shares outstanding (in millions) (2) 424.68 443.66

Weighted average diluted common shares (in millions) 422.55 397.15

(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 Reconciliationto GAAP.

People's United Financial, Inc.

FINANCIAL HIGHLIGHTS - Continued

As of and for the Three Months Ended

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

(dollars in millions) 2020 2020 2020 2020 2019

Financial Condition Data:

Total assets $ 63,445 $ 60,871 $ 61,510 $ 60,433 $ 58,590

Loans 43,444 45,231 45,452 44,284 43,596

Securities 9,191 8,270 8,233 8,552 7,790

Short-term investments 3,766 439 987 744 317

Allowance for credit losses on 425 424 414 342 247loans (1)

Goodwill and other 3,199 3,244 3,254 3,264 3,275acquisition-related intangible assets

Deposits 52,138 49,637 49,934 44,741 43,590

Borrowings 1,148 1,237 1,782 5,911 5,155

Notes and debentures 1,010 1,012 1,015 1,013 993

Stockholders' equity 7,956 7,831 7,763 7,726 7,947

Total risk-weighted assets (2):

People's United Financial, 45,056 45,756 45,657 46,408 45,208Inc.

People's United Bank, N.A. 44,996 45,685 45,615 46,397 45,174

Non-accrual loans 329 306 296 240 224

Net loan charge-offs 13.4 17.3 8.5 10.6 6.7

Average Balances:

Loans $ 44,061 $ 44,853 $ 45,153 $ 43,460 $ 42,006

Securities (3) 8,390 7,922 8,240 8,022 7,372

Short-term investments 2,582 842 774 289 294

Total earning assets 55,034 53,617 54,168 51,772 49,673

Total assets 62,396 61,293 61,841 58,604 56,130

Deposits 50,674 49,542 48,447 44,163 42,195

Borrowings 1,233 1,283 2,911 4,353 4,146

Notes and debentures 1,011 1,014 1,014 1,000 974

Total funding liabilities 52,918 51,839 52,372 49,515 47,314

Stockholders' equity 7,884 7,801 7,757 7,804 7,654

Ratios:

Net loan charge-offs to average 0.12 % 0.15 % 0.08 % 0.10 % 0.06 %total loans (annualized)

Non-performing assets to totalloans, real estate owned

and repossessed assets 0.78 0.71 0.69 0.59 0.57

Allowance for credit losses onloans to (1):

Total loans 0.97 0.94 0.91 0.77 0.57

Non-accrual loans 129.1 138.4 139.8 142.2 110.0

Average stockholders' equity to 12.6 12.7 12.5 13.3 13.6average total assets

Stockholders' equity to total 12.5 12.9 12.6 12.8 13.6assets

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

Total risk-based capital (2):

People's United Financial, 12.4 11.8 11.8 11.3 12.0Inc.

People's United Bank, N.A. 12.8 12.3 12.3 12.0 12.1

(1) Allowance for credit losses on loans and asset quality ratios for 2020reflect the initial adoption and application of the

CECL standard.

(2) December 31, 2020 amounts andratios are preliminary.

(3) Average balances for securities are basedon amortized cost.

(4) See Non-GAAP Financial Measures andReconciliation to GAAP.

People's UnitedFinancial, Inc.

CONSOLIDATED STATEMENTS OF CONDITION (1)

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

(in millions) 2020 2020 2020 2019

Assets

Cash and due from $ 477.3 $ 616.8 $ 491.9 $ 484.2banks

Short-term 3,766.0 438.6 987.4 316.8investments

Securities:

Trading debtsecurities, at fair - - - 7.1value

Equity securities, 5.3 5.6 5.8 8.2at fair value

Debt securitiesavailable-for-sale, 4,925.5 4,080.7 4,080.3 3,564.3at fair value

Debt securitiesheld-to-maturity, at 3,993.8 3,916.5 3,848.6 3,869.2amortized cost

Federal Home LoanBank and Federal 266.6 267.1 298.3 341.1Reserve Bank stock,at cost

Total securities 9,191.2 8,269.9 8,233.0 7,789.9

Loans held-for-sale 26.5 21.4 12.2 511.3

Loans:

Commercial and 14,982.3 15,295.0 14,593.9 11,041.6industrial (2)

Commercial real 13,336.9 13,713.3 13,999.5 14,762.3estate (2)

Equipment 4,930.0 4,887.6 4,880.1 4,910.4financing

Total Commercial 33,249.2 33,895.9 33,473.5 30,714.3Portfolio

Residential 8,518.9 9,095.6 9,623.7 10,318.1mortgage

Home equity and 2,101.4 2,239.1 2,354.3 2,563.7other consumer

Total Retail 10,620.3 11,334.7 11,978.0 12,881.8Portfolio

Total loans 43,869.5 45,230.6 45,451.5 43,596.1

Less allowance forcredit losses on (425.1) (423.8) (414.0) (246.6)loans

Total loans, net 43,444.4 44,806.8 45,037.5 43,349.5

Goodwill and otheracquisition-related 3,198.9 3,243.5 3,253.7 3,274.6intangible assets

Bank-owned life 711.6 710.5 708.1 705.0insurance

Premises and 276.7 281.3 285.7 305.5equipment, net

Other assets 2,352.2 2,482.4 2,500.2 1,853.0

Total assets $ 63,444.8 $ 60,871.2 $ 61,509.7 $ 58,589.8

Liabilities

Deposits:

$ 15,881.7 $ 14,101.9 $ 13,656.9 $ 9,803.7Non-interest-bearing

Savings 6,029.7 5,846.3 5,759.4 4,987.7

Interest-bearingchecking and money 24,567.5 23,361.8 22,943.6 19,592.6market

Time 5,658.8 6,326.5 7,574.4 9,205.5

Total deposits 52,137.7 49,636.5 49,934.3 43,589.5

Borrowings:

Federal Home Loan 569.7 579.8 1,289.7 3,125.4Bank advances

Customerrepurchase 452.9 432.5 342.1 409.1agreements

Federal funds 125.0 225.0 150.0 1,620.0purchased

Total borrowings 1,147.6 1,237.3 1,781.8 5,154.5

Notes and debentures 1,009.6 1,012.0 1,014.5 993.1

Other liabilities 1,194.1 1,153.9 1,016.1 905.5

Total 55,489.0 53,039.7 53,746.7 50,642.6liabilities

Stockholders' Equity

Preferred stock 244.1 244.1 244.1 244.1

Common stock 5.3 5.3 5.3 5.3

Additional paid-in 7,663.6 7,657.3 7,651.2 7,639.4capital

Retained earnings 1,716.6 1,589.1 1,524.6 1,512.8

Accumulated other (89.2) (77.9) (73.9) (166.9)comprehensive loss

Unallocated commonstock of Employee (115.6) (117.4) (119.3) (122.9)Stock OwnershipPlan, at cost

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

Total 7,955.8 7,831.5 7,763.0 7,947.2stockholders' equity

Totalliabilities and $ 63,444.8 $ 60,871.2 $ 61,509.7 $ 58,589.8stockholders' equity

(1) The Consolidated Statement of Condition for December 31, 2020 ispreliminary and does not reflect any estimated goodwill impairment that theCompany is in the process of evaluating.

(2) 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, at that time, from commercial realestate loans to commercial and industrial loans. Prior period loan balanceswere not restated to conform to the current presentation.

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF INCOME (1)

Three Months Ended

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

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

Interest anddividend income:

Commercial real $ 106.1 $ 110.5 $ 122.4 $ 149.6 $ 147.2estate (2)

Commercial and 111.3 110.7 112.4 106.4 114.9industrial (2)

Equipment 62.1 65.4 67.6 68.2 66.7financing

Residential 74.9 82.1 84.8 90.4 88.2mortgage

Home equity and 18.7 19.9 20.1 28.0 30.8other consumer

Total interest 373.1 388.6 407.3 442.6 447.8on loans

Securities 47.2 47.5 49.8 51.2 47.8

Short-term 0.8 0.4 0.2 2.0 1.0investments

Loans 0.4 0.3 0.3 3.3 0.3held-for-sale

Total interest 421.5 436.8 457.6 499.1 496.9and dividend income

Interest expense:

Deposits 30.1 36.5 41.7 78.9 86.9

Borrowings 1.3 1.5 2.0 15.4 18.5

Notes and 7.3 7.4 8.3 8.8 8.8debentures

Total interest 38.7 45.4 52.0 103.1 114.2expense

Net interest 382.8 391.4 405.6 396.0 382.7income

Provision forcredit losses on 14.7 27.1 80.8 33.5 7.3loans (3)

Provision forcredit losses on - (0.3) - - -securities (3)

Net interestincome after 368.1 364.6 324.8 362.5 375.4provision forcredit losses

Non-interestincome:

Bank service 24.7 24.5 20.3 28.0 28.9charges

Investment 18.9 18.8 17.4 18.1 19.3management fees

Commercialbanking lending 15.5 12.7 10.6 12.1 12.9fees

Operating lease 12.9 12.4 11.8 12.6 12.7income

Insurance revenue 4.1 9.7 9.0 10.9 7.5

Cash management 9.1 8.8 8.1 7.4 7.1fees

Customer interestrate swap income, 2.2 1.2 2.7 8.8 8.5net

Gain on sale ofbusiness, net of 75.9 - - - -expenses (4)

Othernon-interest income 14.9 13.0 9.7 25.9 27.3(4)

Total 178.2 101.1 89.6 123.8 124.2non-interest income

Non-interestexpense:

Compensation and 166.6 166.5 167.8 173.9 171.4benefits

Occupancy and 50.9 49.1 48.0 51.0 52.2equipment

Professional and 24.9 24.1 25.7 38.5 29.6outside services

Amortization ofother 9.7 10.2 10.2 10.7 9.8acquisition-relatedintangible assets

Operating lease 8.5 9.3 8.8 9.8 9.6expense

Regulatory 6.9 8.4 8.7 8.7 7.3assessments

Othernon-interest 25.9 26.0 34.8 27.5 45.8expense

Totalnon-interest 293.4 293.6 304.0 320.1 325.7expense (4)

Income before 252.9 172.1 110.4 166.2 173.9income tax expense

Income tax expense 45.2 27.5 20.5 35.8 36.4

Net income 207.7 144.6 89.9 130.4 137.5

Preferred stock 3.5 3.5 3.5 3.5 3.5dividend

Net incomeavailable to common $ 204.2 $ 141.1 $ 86.4 $ 126.9 $ 134.0shareholders

Earnings per commonshare:

Basic $ 0.49 $ 0.34 $ 0.21 $ 0.30 $ 0.31

Diluted 0.49 0.34 0.21 0.30 0.31

(1) The Consolidated Statement of Income for the three months ended December31, 2020 is preliminary and does not reflect any estimated goodwill impairmentthat the Company is in the process of evaluating.

(2) 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, at that time, from commercial realestate loans to commercial and industrial loans. Prior period interest incomeamounts were not restated to conform to the current presentation.

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

(4) The gain on sale of business, net of expenses, is considered non-operatingincome. Other non-interest income includes $7.6 million of non-operating incomefor the three months ended December 31, 2019. Total non-interest expenseincludes $4.9 million, $4.6 million, $18.5 million, $17.9 million and $39.1million of non-operating expenses for the three months ended December 31, 2020,September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019,respectively. See Non-GAAP Financial Measures and Reconciliation to GAAP.

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF INCOME (1)

Twelve Months Ended

December 31,

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

Interest and dividend income:

Commercial real estate $ 488.6 $ 556.4

Commercial and industrial 440.8 443.6

Equipment financing 263.3 253.8

Residential mortgage 332.2 329.1

Home equity and other consumer 86.7 106.1

Total interest on loans 1,611.6 1,689.0

Securities 195.7 186.5

Loans held-for-sale 4.3 0.8

Short-term investments 3.4 4.8

Total interest and dividend income 1,815.0 1,881.1

Interest expense:

Deposits 187.2 356.9

Borrowings 20.2 77.0

Notes and debentures 31.8 34.9

Total interest expense 239.2 468.8

Net interest income 1,575.8 1,412.3

Provision for credit losses on loans (2) 156.1 28.3

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

Net interest income after provision for credit losses 1,420.0 1,384.0

Non-interest income:

Bank service charges 97.5 107.5

Investment management fees 73.2 78.2

Commercial banking lending fees 50.9 42.7

Operating lease income 49.7 50.8

Insurance revenue 33.7 37.0

Cash management fees 33.4 28.4

Customer interest rate swap income, net 14.9 24.0

Gain on sale of business, net of expenses (3) 75.9 -

Other non-interest income (3) 63.5 62.5

Total non-interest income 492.7 431.1

Non-interest expense:

Compensation and benefits 674.8 646.2

Occupancy and equipment 199.0 185.9

Professional and outside services 113.2 98.2

Amortization of other acquisition-related intangible assets 40.8 32.5

Operating lease expense 36.4 38.8

Regulatory assessments 32.7 26.1

Other non-interest expense 114.2 135.0

Total non-interest expense (3) 1,211.1 1,162.7

Income before income tax expense 701.6 652.4

Income tax expense 129.0 132.0

Net income 572.6 520.4

Preferred stock dividend 14.1 14.1

Net income available to common shareholders $ 558.5 $ 506.3

Earnings per common share:

Basic $ 1.33 $ 1.28

Diluted 1.32 1.27

(1) The Consolidated Statement of Income for the twelve months ended December31, 2020 is preliminary and

does not reflect any estimated goodwill impairment that the Company is inthe process of evaluating.

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

COVID-19.

(3) The gain on sale of business, net of expenses, is considered non-operatingincome. Other non-interest

income includes $7.6 million of non-operating income for the twelve monthsended December 31, 2019.

Total non-interest expense includes $45.9 million and $65.6 million ofnon-operating expenses for the

twelve months ended December 31, 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)

December 31, 2020 September 30, 2020 December 31, 2019

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

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

Assets:

Short-term $ 2,582.1 $ 0.8 0.12% $ 841.5 $ 0.4 0.19% $ 294.4 $ 1.0 1.39%investments

Securities (2) 8,390.2 52.3 2.50 7,922.4 52.5 2.65 7,372.2 52.6 2.85

Loans:

Commercial real 13,574.3 106.1 3.13 13,853.1 110.5 3.19 13,793.2 147.2 4.27estate

Commercial and 14,621.8 113.6 3.11 14,419.8 113.0 3.13 10,805.1 117.7 4.36industrial

Equipment 4,867.5 62.1 5.10 4,876.4 65.4 5.37 4,785.0 66.7 5.58financing

Residential 8,821.0 75.3 3.41 9,408.0 82.4 3.51 10,019.0 88.5 3.53mortgage

Home equity and 2,176.6 18.7 3.44 2,296.0 19.9 3.47 2,603.8 30.8 4.72other consumer

Total loans 44,061.2 375.8 3.41 44,853.3 391.2 3.49 42,006.1 450.9 4.29

Total earning 55,033.5 $ 428.9 3.12% 53,617.2 $ 444.1 3.31% 49,672.7 $ 504.5 4.06%assets

Other assets 7,362.6 7,676.2 6,457.2

Total assets $ 62,396.1 $ 61,293.4 $ 56,129.9

Liabilities andstockholders'equity:

Deposits:

$ 14,742.6 $ - - % $ 13,753.8 $ - - % $ 9,593.6 $ - - %Non-interest-bearing

Savings,interest-bearingchecking

and money market 29,978.3 14.7 0.20 28,970.0 16.4 0.23 23,674.3 49.7 0.84

Time 5,953.5 15.4 1.03 6,817.8 20.1 1.18 8,926.8 37.2 1.67

Total deposits 50,674.4 30.1 0.24 49,541.6 36.5 0.29 42,194.7 86.9 0.82

Borrowings:

Federal Home Loan 571.8 1.1 0.77 640.5 1.3 0.79 2,287.7 11.4 1.99Bank advances

Customerrepurchase 447.6 0.2 0.15 382.6 0.2 0.18 1,489.3 6.4 1.73agreements

Federal funds 213.3 - 0.09 260.1 - 0.08 369.2 0.7 0.73purchased

Total borrowings 1,232.7 1.3 0.43 1,283.2 1.5 0.46 4,146.2 18.5 1.78

Notes and debentures 1,010.8 7.3 2.89 1,014.0 7.4 2.92 973.5 8.8 3.61

Total funding 52,917.9 $ 38.7 0.29% 51,838.8 $ 45.4 0.35% 47,314.4 $ 114.2 0.96%liabilities

Other liabilities 1,594.2 1,653.3 1,161.3

Total 54,512.1 53,492.1 48,475.7liabilities

Stockholders' equity 7,884.0 7,801.3 7,654.2

Totalliabilities and

stockholders' $ 62,396.1 $ 61,293.4 $ 56,129.9equity

Net interest income/ $ 390.2 2.83% $ 398.7 2.96% $ 390.3 3.10%spread (3)

Net interest margin 2.84% 2.97% 3.14%

(1) Average yields earned and rates paid areannualized.

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

(3) The fully taxable equivalent adjustment was $7.4 million, $7.3 million and$7.6 million for the three months ended

December 31, 2020, September 30, 2020 and December 31, 2019,respectively.

People's United Financial, Inc.

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS

December 31, December 31, 2020 2019

Twelve months ended Average Yield Average Yield / /

(dollars in Balance Interest Rate Balance Interest Ratemillions)

Assets:

Short-term $ 1,125.1 $ 3.4 0.31% $ 232.7 $ 4.8 2.06%investments

Securities (1) 8,143.7 215.7 2.65 7,217.5 205.2 2.84

Loans:

Commercial real 14,057.6 488.6 3.48 12,480.1 556.4 4.46estate

Commercial and 13,456.8 451.0 3.35 9,874.7 454.3 4.60industrial

Equipment 4,898.2 263.3 5.38 4,574.9 253.8 5.55financing

Residential 9,569.2 333.3 3.48 9,314.8 329.9 3.54mortgage

Home equity and 2,400.5 89.5 3.73 2,174.0 106.1 4.88other consumer

Total loans 44,382.3 1,625.7 3.66 38,418.5 1,700.5 4.43

Total earning 53,651.1 $ 1,844.8 3.44% 45,868.7 $ 1,910.5 4.17%assets

Other assets 7,387.0 5,789.3

Total assets $ 61,038.1 $ 51,658.0

Liabilities andstockholders'equity:

Deposits:

$ 12,864.4 $ - - % $ 8,822.9 $ - %Non-interest-bearing -

Savings,interest-bearingchecking

and money market 27,831.9 92.2 0.33 22,204.1 209.3 0.94

Time 7,520.6 95.0 1.26 8,115.7 147.6 1.82

Total deposits 48,216.9 187.2 0.39 39,142.7 356.9 0.91

Borrowings:

Federal Home Loan 1,371.2 13.7 1.00 2,098.0 50.1 2.39Bank advances

Federal funds 688.2 5.4 0.79 1,127.5 24.6 2.18purchased

Customerrepurchase 379.0 1.1 0.29 296.6 2.2 0.75agreements

Other borrowings - - - 3.3 0.1 1.87

Total borrowings 2,438.4 20.2 0.83 3,525.4 77.0 2.18

Notes and debentures 1,009.5 31.8 3.15 922.1 34.9 3.78

Total funding 51,664.8 $ 239.2 0.46% 43,590.2 $ 468.8 1.08%liabilities

Other liabilities 1,561.5 996.5

Total 53,226.3 44,586.7liabilities

Stockholders' equity 7,811.8 7,071.3

Totalliabilities and

stockholders' $ 61,038.1 $ 51,658.0equity

Net interest income/ $ 1,605.6 2.98% $ 1,441.7 3.09%spread (2)

Net interest margin 2.99% 3.14%

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

(2) The fully taxable equivalent adjustment was $29.8 million and $29.4 millionfor the twelve months

ended December 31, 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

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

(dollars in millions) 2020 2020 2020 2020 2019

Non-accrual loans:

Commercial:

Commercial real estate $ 60.4 $ 85.3 $ 73.6 $ 53.5 $ 53.8

Commercial and industrial 76.4 86.7 88.8 55.6 38.5

Equipment financing 109.3 49.0 48.6 42.5 47.7

Total Commercial 246.1 221.0 211.0 151.6 140.0

Retail:

Residential mortgage 62.3 62.9 62.6 66.6 63.3

Home equity 20.5 22.1 22.5 22.1 20.8

Other consumer 0.2 0.2 0.1 0.1 -

Total Retail 83.0 85.2 85.2 88.8 84.1

Total non-accrual loans (1) 329.1 306.2 296.2 240.4 224.1

Real estate owned:

Commercial 3.6 3.6 7.3 7.3 7.3

Residential 3.2 1.9 4.9 9.5 11.9

Total real estate owned 6.8 5.5 12.2 9.5 11.9

Repossessed assets 5.7 9.7 6.2 4.6 4.2

Total non-performing assets $ 341.6 $ 321.4 $ 314.6 $ 254.5 $ 240.2

Non-accrual loans as a 0.75 % 0.68 % 0.65 % 0.54 % 0.51 %percentage of total loans

Non-performing assets as apercentage of:

Total loans, real estate owned 0.78 0.71 0.69 0.59 0.57and repossessed assets

Tangible stockholders' equityand allowance

for credit losses 6.59 6.41 6.39 5.45 5.03

(1) Reported net of government guarantees totaling $2.5 million at December 31,2020, $2.4 million at September 30, 2020, $2.9 million at June 30, 2020, $1.2million at March 31, 2020 and $1.3 million at December 31, 2019.

People's United Financial, Inc.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

Three Months Ended

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

(dollars in millions) 2020 2020 2020 2020 2019

Allowance for credit losses onloans:

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

CECL transition adjustment - - - 72.2 N/A

Balance at beginning of 423.8 414.0 341.7 318.8 246.0period, adjusted

Charge-offs (16.7) (19.3) (10.3) (12.6) (8.5)

Recoveries 3.3 2.0 1.8 2.0 1.8

Net loan charge-offs (13.4) (17.3) (8.5) (10.6) (6.7)

Provision for credit losses 14.7 27.1 80.8 33.5 7.3on loans

Balance at end of period $ 425.1 $ 423.8 $ 414.0 $ 341.7 $ 246.6

Allowance for credit losses onloans

as a percentage of:

Total loans 0.97 % 0.94 % 0.91 % 0.77 % 0.57 %

Non-accrual loans 129.1 138.4 139.8 142.2 110.0

N/A - not applicable

NET LOAN CHARGE-OFFS (RECOVERIES)

Three Months Ended

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

(dollars in millions) 2020 2020 2020 2020 2019

Commercial:

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

Commercial and industrial 6.6 6.9 - 1.0 2.3

Equipment financing 6.8 6.2 5.2 3.9 4.2

Total 13.5 17.2 7.0 8.3 6.4

Retail:

Residential mortgage (0.3) (0.2) - 0.8 (0.2)

Home equity - - 0.6 0.1 0.3

Other consumer 0.2 0.3 0.9 1.4 0.2

Total (0.1) 0.1 1.5 2.3 0.3

Total net loan charge-offs $ 13.4 $ 17.3 $ 8.5 $ 10.6 $ 6.7

Net loan charge-offs to

average total loans 0.12 % 0.15 % 0.08 % 0.10 % 0.06 %(annualized)

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 UnitedFinancial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP -Continued

OPERATING NON-INTEREST EXPENSE AND EFFICIENCYRATIO

Three Months Ended Twelve Months Ended

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

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

Totalnon-interest $ 293.4 $ 293.6 $ 304.0 $ 320.1 $ 325.7 $ 1,211.1 $ 1,162.7expense

Adjustments toarrive atoperating

non-interestexpense:

Merger-related (4.9) (4.6) (18.5) (17.9) (22.6) (45.9) (49.1)expenses

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

Total (4.9) (4.6) (18.5) (17.9) (39.1) (45.9) (65.6)

Operatingnon-interest 288.5 289.0 285.5 302.2 286.6 1,165.2 1,097.1expense

Adjustments:

Amortization of otheracquisition-related

intangible (9.7) (10.2) (10.2) (10.7) (9.8) (40.8) (32.5)assets

Operating (8.5) (9.3) (8.8) (9.8) (9.6) (36.4) (38.8)lease expense

Other (1) (1.3) (5.1) (1.9) (1.9) (1.6) (10.2) (6.2)

Totalnon-interestexpense for

efficiency $ 269.0 $ 264.4 $ 264.6 $ 279.8 $ 265.6 $ 1,077.8 $ 1,019.6ratio

Net interestincome (FTE $ 390.2 $ 398.7 $ 413.0 $ 403.7 $ 390.3 $ 1,605.6 $ 1,441.7basis)

Totalnon-interest 178.2 101.1 89.6 123.8 124.2 492.7 431.1income

Total 568.4 499.8 502.6 527.5 514.5 2,098.3 1,872.8revenues

Adjustments:

Gain on saleof business, (75.9) - - - - (75.9) -net of expenses

Operating (8.5) (9.3) (8.8) (9.8) (9.6) (36.4) (38.8)lease expense

BOLI FTE 0.9 0.8 1.0 0.8 0.7 3.5 2.5adjustment

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

Net security - - - - (0.1) - (0.2)gains

Other (2) - (0.1) - (0.3) (3.2) (0.4) (2.8)

Totalrevenues for $ 484.9 $ 491.2 $ 494.8 $ 518.2 $ 494.7 $ 1,989.1 $ 1,825.9efficiencyratio

Efficiency 55.5% 53.8% 53.5% 54.0% 53.7% 54.2% 55.8%ratio

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

include certain franchise taxes and realestate owned expenses.

(2) Items classified as "other" and deducted from total revenues for purposesof 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 Twelve Months Ended

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

(in millions) 2020 2020 2020 2020 2019 2020 2019

Net interest $ 382.8 $ 391.4 $ 405.6 $ 396.0 $ 382.7 $ 1,575.8 $ 1,412.3income

Non-interest 178.2 101.1 89.6 123.8 124.2 492.7 431.1income

Non-interest (293.4) (293.6) (304.0) (320.1) (325.7) (1,211.1) (1,162.7)expense

Pre-provision 267.6 198.9 191.2 199.7 181.2 857.4 680.7net revenue

Non-operating (75.9) - - - (7.6) (75.9) (7.6)income

Non-operating 4.9 4.6 18.5 17.9 39.1 45.9 65.6expense

Operatingpre-provision $ 196.6 $ 203.5 $ 209.7 $ 217.6 $ 212.7 $ 827.4 $ 738.7net revenue

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING EARNINGS

Three Months Ended Twelve Months Ended

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

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

Net income available to common shareholders $ 204.2 $ 141.1 $ 86.4 $ 126.9 $ 134.0 $ 558.5 $ 506.3

Adjustments to arrive at operating earnings:

Merger-related expenses 4.9 4.6 18.5 17.9 22.6 45.9 49.1

Gain on sale of business, net of expenses (75.9) - - - - (75.9) -

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

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

Total pre-tax adjustments (71.0) 4.6 18.5 17.9 31.5 (30.0) 58.0

Tax effect 14.5 (1.0) (3.9) (3.7) (6.7) 6.1 (12.2)

Total adjustments, net of tax (56.5) 3.6 14.6 14.2 24.8 (23.9) 45.8

Operating earnings $ 147.7 $ 144.7 $ 101.0 $ 141.1 $ 158.8 $ 534.6 $ 552.1

Diluted EPS, as reported $ 0.49 $ 0.34 $ 0.21 $ 0.30 $ 0.31 $ 1.32 $ 1.27

Adjustments to arrive at operating EPS:

Merger-related expenses - - 0.03 0.03 0.04 0.09 0.10

Gain on sale of business, net of expenses (0.14) - - - - (0.14) -

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

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

Total adjustments per common share (0.14) - 0.03 0.03 0.06 (0.05) 0.12

Operating EPS $ 0.35 $ 0.34 $ 0.24 $ 0.33 $ 0.37 $ 1.27 $ 1.39

Average total assets $ 62,396 $ 61,293 $ 61,841 $ 58,603 $ 56,130 $ 61,038 $ 51,658

Operating return on

average assets (annualized) 0.95% 0.94% 0.65% 0.96% 1.13% 0.88% 1.07%

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

OPERATING RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Three Months Ended Twelve Months Ended

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

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

Operating earnings $ 147.7 $ 144.7 $ 101.0 $ 141.1 $ 158.8 $ 534.6 $ 552.1

Average stockholders' equity $ 7,884 $ 7,801 $ 7,757 $ 7,804 $ 7,654 $ 7,812 $ 7,071

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

Average common equity 7,640 7,557 7,513 7,560 7,410 7,568 6,827

Less: Average goodwill and average other

acquisition-related intangible assets 3,213 3,249 3,259 3,269 3,226 3,247 3,060

Average tangible common equity $ 4,427 $ 4,308 $ 4,254 $ 4,291 $ 4,184 $ 4,321 $ 3,767

Operating return on average tangible

common equity (annualized) 13.3% 13.4% 9.5% 13.2% 15.2% 12.4% 14.7%

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING COMMON DIVIDEND PAYOUT RATIO

Three Months Ended Twelve Months Ended

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

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

Common dividends paid $ 75.6 $ 75.7 $ 75.5 $ 77.3 $ 69.9 $ 304.1 $ 274.8

Operating earnings $ 147.7 $ 144.7 $ 101.0 $ 141.1 $ 158.8 $ 534.6 $ 552.1

Operating common dividend payout ratio 51.2% 52.3% 74.8% 54.8% 44.0% 56.9% 49.8%

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

TANGIBLE COMMON EQUITY RATIO

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

(dollars in millions) 2020 2020 2020 2020 2019

Total stockholders' equity $ 7,956 $ 7,831 $ 7,763 $ 7,726 $ 7,947

Less: Preferred stock 244 244 244 244 244

Common equity 7,712 7,587 7,519 7,482 7,703

Less: Goodwill and other

acquisition-related intangible 3,199 3,244 3,254 3,264 3,275assets

Tangible common equity $ 4,513 $ 4,343 $ 4,265 $ 4,218 $ 4,428

Total assets $ 63,445 $ 60,871 $ 61,510 $ 60,433 $ 58,590

Less: Goodwill and other

acquisition-related intangible 3,199 3,244 3,254 3,264 3,275assets

Tangible assets $ 60,246 $ 57,627 $ 58,256 $ 57,169 $ 55,315

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

TANGIBLE BOOK VALUE PER COMMON SHARE

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

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

Tangible common equity $ 4,513 $ 4,343 $ 4,265 $ 4,218 $ 4,428

Common shares issued 533.68 533.67 533.59 533.47 532.83

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

Common shares outstanding 424.68 424.67 424.59 424.47 443.66

Less: Unallocated ESOP shares 5.57 5.66 5.75 5.84 5.92

Common shares 419.11 419.01 418.84 418.63 437.74

Tangible book value per common share $ 10.77 $ 10.36 $ 10.18 $ 10.07 $ 10.12

View original content to download multimedia: http://www.prnewswire.com/news-releases/peoples-united-financial-reports-fourth-quarter-net-income-of-207-7-million-or-0-49-per-common-share-301212901.html

SOURCE People's United Financial, Inc.