PR Newswire | Oct 21, 2021 04:02PM EDT

or $0.32 per Common Share

10/21 15:01 CDT

People's United Financial Reports Third Quarter Net Income of $139.7 Million, or $0.32 per Common ShareOperating Earnings of $0.33 per Common Share-- Sustained excellent asset quality as evidenced by net loan charge-offs to average total loans of eight basis points.-- Generated positive operating leverage reflected by a 60-basis point linked-quarter improvement in the efficiency ratio to 56.8 percent due to lower expenses and continued strong non-interest income.-- Reached a new agreement with Stop & Shop to retain 27 strategic in-store branch locations in Connecticut.-- Declared quarterly dividend of $0.1825 per common share payable November 15, 2021, to shareholders of record on November 1, 2021. BRIDGEPORT, Conn., Oct. 21, 2021

BRIDGEPORT, Conn., Oct. 21, 2021 /PRNewswire/ -- People's United Financial, Inc. (NASDAQ: PBCT) today reported results for the third quarter of 2021. These results along with comparison periods are summarized below:

' ($ in millions, except per common share data) Three Months Ended Sep. 30, 2021 Jun. 30, 2021 Sep. 30, 2020 Net income $ 139.7 $ 170.8 $ 144.6 Net income available 136.2 167.3 141.1 to common shareholders Per common share 0.32 0.39 0.34 Operating earnings^1 141.1 176.1 144.7 Per common share 0.33 0.41 0.34 Net interest income $ 370.3 $ 380.9 $ 391.4 Net interest margin 2.64% 2.70% 2.97% Non-interest income 100.4 99.0 101.1 Non-interest expense $ 289.2 $ 305.0 $ 293.6 Operating non-interest expense^1 282.9 293.8 289.0 Efficiency ratio 56.8% 57.4% 53.8% Average balances Loans $ 39,934 $ 41,683 $ 44,853 Deposits 52,822 53,041 49,542 Period-end balances Loans 39,526 41,366 45,231 Deposits 52,871 52,581 49,637 ^1 See Non-GAAP Financial Measures and Reconciliation to GAAP.

"We are pleased with our third quarter performance, particularly given the low interest rate environment," said Jack Barnes, Chairman and Chief Executive Officer. "Our focus remains on completing the merger with M&T, which will bring together two high-performing and well-respected institutions. While the combined bank will have significant size and scale to offer customers greater branch access, more innovative solutions, and enhanced digital capabilities, the Company will remain true to its collective roots of delivering superior service at the local level and providing steadfast community support. As we have worked closely with our M&T partners on integration, we have developed an even greater appreciation for the similarity of the cultures and philosophies between the two banks. As such, a seamless transition is expected for our clients and colleagues once the transaction is closed. Finally, I want to express my sincere gratitude to all our employees for their efforts and dedication as we move towards People's United's next chapter and further build upon its storied legacy."

"The third quarter financial results reflect the consistent core earnings power of the franchise and were highlighted by continued excellent asset quality, well-controlled expenses, strong non-interest income, and a lower effective tax rate," stated David Rosato, Senior Executive Vice President and Chief Financial Officer. "Operating earnings of $141 million were down $35 million linked-quarter driven by a change of $42 million after-tax in the provision for credit losses. Pre-provision net revenue increased four percent linked-quarter, or one percent on an operating basis. Net interest margin of 2.64 percent was six basis points lower than the second quarter mostly due to increased excess liquidity. Conversely, the margin benefited from continued stable loan yields and a further reduction in deposit costs."

Rosato continued, "The loan-to-deposit ratio concluded the quarter at 75 percent as the total loan portfolio decreased $1.8 billion or four percent from June 30, while deposits grew $290 million or one percent. Loan growth continued to experience headwinds during the quarter as period-end loans, excluding forgiveness of PPP balances, declined approximately $1.1 billion, primarily due to lower commercial real estate and retail balances of $581 million and $450 million, respectively, as well as a $200 million reduction in the mortgage warehouse portfolio. These decreases were partially offset by solid results in LEAF and asset-based lending. Growth in period-end deposits was largely attributable to higher balances within our municipal and mortgage warehouse businesses. Finally, capital ratios remain strong and improved linked-quarter for both the Bank and Holding Company."

As of and for the Three Months Ended Sep. 30, 2021 Jun. 30, 2021 Sep. 30, 2020 Asset Quality Net loan charge-offs 0.08% 0.10% 0.15% to average total loans Non-performing loans 0.81% 0.79% 0.68% as a percentage of total loans Returns Return on average assets^1 0.87% 1.07% 0.94% Return on average tangible common equity^1 11.6% 14.7% 13.1% Capital Ratios People's United Financial, Inc. Tangible common equity / tangible assets 7.8% 7.7% 7.5% Tier 1 leverage 8.6% 8.4% 8.2% Common equity tier 1 11.7% 11.3% 9.9% Tier 1 risk-based 12.3% 11.8% 10.5% Total risk-based 13.4% 13.1% 11.8% People's United Bank, N.A. Tier 1 leverage 8.8% 8.8% 8.7% Common equity tier 1 12.6% 12.3% 11.0% Tier 1 risk-based 12.6% 12.3% 11.0% Total risk-based 13.6% 13.5% 12.3% ^1 See Non-GAAP Financial Measures and Reconciliation to GAAP.

The Board of Directors declared a $0.1825 per common share quarterly dividend payable November 15, 2021, to shareholders of record on November 1, 2021. Based on the closing stock price on October 20, 2021, the dividend yield on People's United Financial common stock is 3.9 percent.

People's United Bank, N.A. is a subsidiary of People's United Financial, Inc., a diversified, community-focused financial services company headquartered in the Northeast with over $63.5 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 2021 Financial Highlights

Summary

* Net income totaled $139.7 million, or $0.32 per common share. * Net income available to common shareholders totaled $136.2 million. * Operating earnings totaled $141.1 million, or $0.33 per common share (see Non-GAAP Financial Measures and Reconciliation to GAAP).

* Net interest income totaled $370.3 million in 3Q21 compared to $380.9 million in 2Q21. * Includes $23.1 million associated with PPP loans in 3Q21 ($20.3 million in net fees and $2.8 million in net interest income).

* Net interest margin decreased six basis points from 2Q21 to 2.64% reflecting: * One additional calendar day in 3Q21 (increase of two basis points). * Lower rates on deposits (increase of one basis point). * Lower yields on the securities portfolio (decrease of five basis points). * Lower yields on the loan portfolio (decrease of four basis points). * Excess liquidity resulting from deposits at the Federal Reserve Bank had a seven basis point negative impact on the net interest margin in 3Q21. * PPP loans had a ten basis point favorable impact on the net interest margin in 3Q21.

* Provision for credit losses on loans totaled $12.0 million. * Allowance for credit losses on loans increased $4.3 million. * Net loan charge-offs totaled $7.7 million. * Net loan charge-off ratio of 0.08%.

* Non-interest income totaled $100.4 million in 3Q21 compared to $99.0 million in 2Q21. * Bank service charges increased $1.0 million. * Commercial banking lending fees decreased $2.3 million. * Customer interest rate swap income decreased $0.6 million. * Other non-interest income in 3Q21 includes $3.9 million of net gains on building sales. * At September 30, 2021, assets under discretionary management totaled $10.1 billion.

* Non-interest expense totaled $289.2 million in 3Q21 compared to $305.0 million in 2Q21. * Operating non-interest expense totaled $282.9 million in 3Q21 and $293.8 million in 2Q21 (see Non-GAAP Financial Measures and Reconciliation to GAAP). * Compensation and benefits expense decreased $9.9 million, primarily reflecting higher incentive-related accruals in 2Q21. * Regulatory assessments expense decreased $1.2 million. * Professional and outside services expense, excluding $4.1 million and $6.0 million of non-operating expenses in 3Q21 and 2Q21, respectively, decreased $0.5 million. * Other non-interest expense includes non-operating expenses totaling $1.6 million in 3Q21 and $5.0 million in 2Q21. * The efficiency ratio was 56.8% for 3Q21 compared to 57.4% for 2Q21 and 53.8% for 3Q20 (see Non-GAAP Financial Measures and Reconciliation to GAAP).

* The effective income tax rate was 17.5% for 3Q21 and 19.8% for the first nine months of 2021, compared to 37.0% for the full-year of 2020. * The full-year 2020 effective income tax rate reflects the impact of a non-deductible goodwill impairment charge for which no tax benefit was realized. Excluding non-deductible goodwill impairment, the effective income tax rate was 18.4% for the full-year of 2020.

Commercial Banking

* Commercial loans totaled $30.5 billion at September 30, 2021, a $1.4 billion decrease from June 30, 2021. * PPP loans decreased $753 million. * The mortgage warehouse portfolio decreased $200 million. * The New York multifamily portfolio decreased $46 million. * The equipment financing portfolio increased $49 million.

* Average commercial loans totaled $30.7 billion in 3Q21, a $1.3 billion decrease from 2Q21. * Average PPP loans decreased $1.0 billion. * The average mortgage warehouse portfolio decreased $43 million. * The average New York multifamily portfolio decreased $42 million. * The average equipment financing portfolio increased $68 million.

* Commercial deposits totaled $25.9 billion at September 30, 2021 compared to $24.9 billion at June 30, 2021. * The ratio of non-accrual commercial loans to total commercial loans was 0.84% at September 30, 2021 compared to 0.82% at June 30, 2021. * Non-performing commercial assets totaled $262.1 million at September 30, 2021 compared to $269.2 million at June 30, 2021. * For the commercial loan portfolio, the allowance for credit losses as a percentage of commercial loans was 0.75% at September 30, 2021 compared to 0.76% at June 30, 2021. * The commercial allowance for credit losses represented 90% of non-accrual commercial loans at September 30, 2021 compared to 93% at June 30, 2021.

Retail Banking

* Residential mortgage loans totaled $7.3 billion at September 30, 2021, a $356 million decrease from June 30, 2021. * Average residential mortgage loans totaled $7.4 billion in 3Q21, a $390 million decrease from 2Q21.

* Home equity loans totaled $1.7 billion at September 30, 2021, a $90 million decrease from June 30, 2021. * Average home equity loans totaled $1.7 billion in 3Q21, an $83 million decrease from 2Q21.

* Retail deposits totaled $27.0 billion at September 30, 2021 compared to $27.7 billion at June 30, 2021. * The ratio of non-accrual residential mortgage loans to residential mortgage loans was 0.68% at September 30, 2021 compared to 0.65% at June 30, 2021. * The ratio of non-accrual home equity loans to home equity loans was 0.96% at September 30, 2021 compared to 1.01% at June 30, 2021. * For the retail loan portfolio, the allowance for credit losses as a percentage of retail loans was 1.36% at September 30, 2021 compared to 1.13% at June 30, 2021. * The retail allowance for credit losses represented 187% of non-accrual retail loans at September 30, 2021 compared to 158% at June 30, 2021.

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 pending merger with M&T Bank Corporation; (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) 2021 2021 2021 2020 2020

Earnings Data:

Net interest income (fully taxable equivalent) $ 377.9 $ 388.7 $ 393.5 $ 390.2 $ 398.7

Net interest income 370.3 380.9 385.9 382.8 391.4

Provision for credit losses 12.1 (40.8) (13.6) 14.7 26.8

Non-interest income (1) 100.4 99.0 94.6 178.2 101.1

Non-interest expense (1) 289.2 305.0 311.9 646.4 293.6

Income (loss) before income tax expense 169.4 215.7 182.2 (100.1) 172.1

Net income (loss) 139.7 170.8 144.5 (145.3) 144.6

Net income (loss) available to common shareholders (1) 136.2 167.3 141.0 (148.8) 141.1

Selected Statistical Data:

Net interest margin (2) 2.64 % 2.70 % 2.74 % 2.84 % 2.97

Return on average assets (1), (2) 0.87 1.07 0.90 (0.93) 0.94

Return on average common equity (2) 7.2 9.1 7.7 (7.8) 7.5

Return on average tangible common equity (1), (2) 11.6 14.7 12.5 (13.4) 13.1

Efficiency ratio (1) 56.8 57.4 56.6 55.5 53.8

Common Share Data:

Earnings (loss) per common share:

Basic $ 0.32 $ 0.40 $ 0.34 $ (0.36) $ 0.34

Diluted (1) 0.32 0.39 0.33 (0.35) 0.34

Dividends paid per common share 0.1825 0.1825 0.1800 0.1800 0.1800

Common dividend payout ratio (1) 56.8 % 46.2 % 53.7 % (50.8) % 53.6

Book value per common share $ 17.85 $ 17.77 $ 17.42 $ 17.56 $ 18.11

Tangible book value per common share (1) 11.18 11.08 10.70 10.77 10.37

Stock price:

High 18.08 19.62 19.40 13.58 12.36

Low 15.18 16.75 12.66 9.98 9.74

Close 17.47 17.14 17.90 12.93 10.31

Common shares outstanding (in millions) (1) 427.77 427.77 427.22 424.68 424.67

Weighted average diluted common shares (in millions) 424.77 425.08 422.58 420.39 420.29

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

(2) 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) 2021 2020 Earnings Data: Net interest income (fully taxable equivalent) $ 1,160.1 $ 1,215.4 Net interest income 1,137.1 1,193.0 Provision for credit losses (42.3) 141.1 Non-interest income 294.0 314.5 Non-interest expense (1) 906.1 917.7 Income before income tax expense 567.3 448.7 Net income 455.0 364.9 Net income available to common shareholders (1) 444.5 354.4 Selected Statistical Data: Net interest margin (2) 2.69 % 3.05 % Return on average assets (1), (2) 0.95 0.80 Return on average common equity (2) 8.0 6.3 Return on average tangible common equity (1), (2) 12.9 11.0 Efficiency ratio (1) 56.9 53.8 Common Share Data: Earnings per common share: Basic $ 1.06 $ 0.84 Diluted (1) 1.05 0.84 Dividends paid per common share 0.5450 0.5375 Common dividend payout ratio (1) 51.8 % 64.5 % Book value per common share $ 17.85 $ 18.11 Tangible book value per common share (1) 11.18 10.37 Stock price: High 19.62 17.00 Low 12.66 9.37 Close 17.47 10.31 Common shares oustanding (in millions) (1) 427.77 424.67 Weighted average diluted common shares (in millions) 424.21 423.28 (1) See Non-GAAP Financial Measures and Reconciliation to GAAP. (2) 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) 2021 2021 2021 2020 2020

Financial Condition Data:

Total assets $ 63,673 $ 63,341 $ 64,172 $ 63,092 $ 60,871

Loans 39,526 41,366 42,770 43,870 45,231

Securities 10,541 10,597 10,445 9,191 8,270

Short-term investments 7,723 5,249 4,992 3,766 439

Allowance for credit losses on loans 352 348 399 425 424

Goodwill and other acquisition-related intangible assets 2,817 2,826 2,835 2,846 3,244

Deposits 52,871 52,581 53,475 52,138 49,637

Borrowings 977 952 1,156 1,148 1,237

Notes and debentures 999 1,002 1,003 1,010 1,012

Stockholders' equity 7,783 7,750 7,592 7,603 7,831

Total risk-weighted assets (1):

People's United Financial, Inc. 42,711 43,654 43,833 45,075 45,756

People's United Bank, N.A. 42,706 43,623 43,812 45,016 45,685

Non-accrual loans 321 328 353 329 306

Net loan charge-offs 7.7 10.3 12.4 13.4 17.3

Average Balances:

Loans $ 39,934 $ 41,683 $ 42,854 $ 44,061 $ 44,853

Securities (2) 10,432 10,418 9,561 8,390 7,922

Short-term investments 6,999 5,469 5,000 2,582 842

Total earning assets 57,365 57,570 57,415 55,034 53,617

Total assets 63,876 63,930 64,057 62,396 61,293

Deposits 52,822 53,041 52,876 50,674 49,542

Borrowings 940 1,012 1,143 1,233 1,283

Notes and debentures 1,002 1,003 1,008 1,011 1,014

Total funding liabilities 54,764 55,056 55,027 52,918 51,839

Stockholders' equity 7,779 7,634 7,606 7,884 7,801

Ratios:

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

Non-performing assets to total loans, real estate owned

and repossessed assets 0.83 0.82 0.85 0.78 0.71

Allowance for credit losses on loans to:

Total loans 0.89 0.84 0.93 0.97 0.94

Non-accrual loans 109.9 106.1 113.0 129.1 138.4

Average stockholders' equity to average total assets 12.9 11.9 11.9 12.6 12.7

Stockholders' equity to total assets 12.2 12.2 11.8 12.1 12.9

Tangible common equity to tangible assets (3) 7.8 7.7 7.4 7.5 7.5

Total risk-based capital (1):

People's United Financial, Inc. 13.4 13.1 12.9 12.4 11.8

People's United Bank, N.A. 13.6 13.5 13.5 12.8 12.3

(1) September 30, 2021 amounts and ratios are preliminary.

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

(3) 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) 2021 2021 2020 2020

Assets

Cash and due from banks $ 410.6 $ 516.3 $ 477.3 $ 616.8

Short-term investments 7,723.0 5,249.4 3,766.0 438.6

Securities:

Debt securities available-for-sale, at fair value 6,257.0 6,328.6 4,925.5 4,080.7

Debt securities held-to-maturity, at amortized cost 3,929.8 4,003.1 3,993.8 3,916.5

Federal Reserve Bank and Federal Home Loan Bank stock, at cost 264.7 264.9 266.6 267.1

Equity securities, at fair value - - 5.3 5.6

Total securities 10,451.5 10,596.6 9,191.2 8,269.9

Loans held-for-sale 9.8 5.4 26.5 21.4

Loans:

Commercial and industrial (1) 12,769.0 13,627.4 14,982.3 15,295.0

Commercial real estate (1) 12,662.6 13,243.2 13,336.9 13,713.3

Equipment financing 5,040.3 4,990.9 4,930.0 4,887.6

Total Commercial Portfolio 30,471.9 31,861.5 33,249.2 33,895.9

Residential mortgage 7,269.8 7,626.2 8,518.9 9,095.6

Home equity and other consumer 1,784.1 1,877.9 2,101.4 2,239.1

Total Retail Portfolio 9,053.9 9,504.1 10,620.3 11,334.7

Total loans 39,525.8 41,365.6 43,869.5 45,230.6

Less allowance for credit losses on loans (352.4) (348.1) (425.1) (423.8)

Total loans, net 39,173.4 41,017.5 43,444.4 44,806.8

Goodwill and other acquisition-related intangible assets 2,816.9 2,825.8 2,845.9 3,243.5

Bank-owned life insurance 716.5 713.7 711.6 710.5

Premises and equipment, net 249.9 261.8 276.7 281.3

Other assets 2,121.0 2,154.2 2,352.2 2,482.4

Total assets $ 63,672.6 $ 63,340.7 $ 63,091.8 $ 60,871.2

Liabilities

Deposits:

Non-interest-bearing $ 16,334.6 $ 16,722.8 $ 15,881.7 $ 14,101.9

Savings 6,685.4 6,710.2 6,029.7 5,846.3

Interest-bearing checking and money market 25,614.7 24,705.9 24,567.5 23,361.8

Time 4,236.6 4,442.3 5,658.8 6,326.5

Total deposits 52,871.3 52,581.2 52,137.7 49,636.5

Borrowings:

Federal Home Loan Bank advances 569.6 569.7 569.7 579.8

Customer repurchase agreements 407.8 382.5 452.9 432.5

Federal funds purchased - - 125.0 225.0

Total borrowings 977.4 952.2 1,147.6 1,237.3

Notes and debentures 999.4 1,001.6 1,009.6 1,012.0

Other liabilities 1,041.5 1,056.1 1,194.1 1,153.9

Total liabilities 55,889.6 55,591.1 55,489.0 53,039.7

Stockholders' Equity

Preferred stock 244.1 244.1 244.1 244.1

Common stock 5.4 5.4 5.3 5.3

Additional paid-in capital 7,714.9 7,709.4 7,663.6 7,657.3

Retained earnings 1,574.7 1,516.5 1,363.6 1,589.1

Unallocated common stock of ESOP, at cost (110.2) (112.0) (115.6) (117.4)

Accumulated other comprehensive loss (176.9) (144.8) (89.2) (77.9)

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

Total stockholders' equity 7,783.0 7,749.6 7,602.8 7,831.5

Total liabilities and stockholders' equity $ 63,672.6 $ 63,340.7 $ 63,091.8 $ 60,871.2

(1) In the first quarter of 2021, the Company completed a portfolio review toensure consistent classification of certain

commercial loans across the Company's franchise and conformity to industrypractice for such loans. As a result,

approximately $350 million of loans secured by non-owner-occupiedcommercial properties were prospectively

reclassified, in March 2021, from commercial and industrial loans tocommercial real estate loans. Prior period

balances were not restated 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) 2021 2021 2021 2020 2020

Interest and dividend income:

Commercial and industrial $ 104.3 $ 107.9 $ 116.1 $ 111.3 $ 110.7

Commercial real estate 96.5 101.6 98.8 106.1 110.5

Equipment financing 62.3 62.5 62.8 62.1 65.4

Residential mortgage 58.8 64.4 69.9 74.9 82.1

Home equity and other consumer 15.2 16.2 16.5 18.7 19.9

Total interest on loans 337.1 352.6 364.1 373.1 388.6

Securities 53.8 52.4 51.4 47.2 47.5

Short-term investments 2.8 1.3 1.2 0.8 0.4

Loans held-for-sale 0.1 - 0.3 0.4 0.3

Total interest and dividend income 393.8 406.3 417.0 421.5 436.8

Interest expense:

Deposits 15.1 17.1 22.7 30.1 36.5

Borrowings 1.2 1.1 1.2 1.3 1.5

Notes and debentures 7.2 7.2 7.2 7.3 7.4

Total interest expense 23.5 25.4 31.1 38.7 45.4

Net interest income 370.3 380.9 385.9 382.8 391.4

Provision for credit losses on loans 12.0 (40.7) (13.6) 14.7 27.1

Provision for credit losses on securities 0.1 (0.1) - - (0.3)

Net interest income after provision for credit losses 358.2 421.7 399.5 368.1 364.6

Non-interest income:

Bank service charges 25.9 24.9 23.5 24.7 24.5

Investment management fees 21.1 21.5 19.9 18.9 18.8

Commercial banking lending fees 11.8 14.1 13.6 15.5 12.7

Operating lease income 10.6 11.2 11.3 12.9 12.4

Cash management fees 9.6 9.6 9.2 9.1 8.8

Customer interest rate swap income, net 1.8 2.4 0.1 2.2 1.2

Gain on sale of business, net of expenses (1) - - - 75.9 -

Other non-interest income 19.6 15.3 17.0 19.0 22.7

Total non-interest income 100.4 99.0 94.6 178.2 101.1

Non-interest expense:

Compensation and benefits 167.7 177.6 172.8 166.6 166.5

Occupancy and equipment 50.2 50.0 49.1 50.9 49.1

Professional and outside services 27.6 30.0 33.6 24.9 24.1

Amortization of other acquisition-related intangible assets 8.9 8.8 11.0 9.7 10.2

Operating lease expense 7.0 7.6 7.8 8.5 9.3

Regulatory assessments 6.6 7.8 8.1 6.9 8.4

Goodwill impairment - - - 353.0 -

Other non-interest expense 21.2 23.2 29.5 25.9 26.0

Total non-interest expense (1) 289.2 305.0 311.9 646.4 293.6

Income (loss) before income tax expense 169.4 215.7 182.2 (100.1) 172.1

Income tax expense 29.7 44.9 37.7 45.2 27.5

Net income (loss) 139.7 170.8 144.5 (145.3) 144.6

Preferred stock dividend 3.5 3.5 3.5 3.5 3.5

Net income (loss) available to common shareholders $ 136.2 $ 167.3 $ 141.0 $(148.8) $ 141.1

Earnings (loss) per common share:

Basic $ 0.32 $ 0.40 $ 0.34 $ (0.36) $ 0.34

Diluted 0.32 0.39 0.33 (0.35) 0.34

(1) The gain on sale of business, net of expenses, is considered non-operatingincome. Total non-interest expense includes

$6.3 million, $11.2 million, $19.6 million, $357.9 million and $4.6 millionof non-operating expenses for the three months ended

September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 andSeptember 30, 2020, respectively. See Non-GAAP

Financial Measures and Reconciliation to GAAP.

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF INCOME

Nine Months Ended

Sept. 30,

(in millions, except per common share data) 2021 2020

Interest and dividend income:

Commercial and industrial $ 328.3 $ 382.5

Commercial real estate 296.9 329.5

Equipment financing 187.6 201.2

Residential mortgage 193.1 257.3

Home equity and other consumer 47.9 68.0

Total interest on loans 1,053.8 1,238.5

Securities 157.6 148.5

Short-term investments 5.3 2.6

Loans held-for-sale 0.4 3.9

Total interest and dividend income 1,217.1 1,393.5

Interest expense:

Deposits 54.9 157.1

Borrowings 3.5 18.9

Notes and debentures 21.6 24.5

Total interest expense 80.0 200.5

Net interest income 1,137.1 1,193.0

Provision for credit losses on loans (42.3) 141.4

Provision for credit losses on securities - (0.3)

Net interest income after provision for credit 1,179.4 1,051.9losses

Non-interest income:

Bank service charges 74.3 72.8

Investment management fees 62.5 54.3

Commercial banking lending fees 39.5 35.4

Operating lease income 33.1 36.8

Cash management fees 28.4 24.3

Customer interest rate swap income, net 4.3 12.7

Other non-interest income 51.9 78.2

Total non-interest income 294.0 314.5

Non-interest expense:

Compensation and benefits 518.1 508.2

Occupancy and equipment 149.3 148.1

Professional and outside services 91.2 88.3

Amortization of other acquisition-related intangible 28.7 31.1assets

Regulatory assessments 22.5 25.8

Operating lease expense 22.4 27.9

Other non-interest expense 73.9 88.3

Total non-interest expense (1) 906.1 917.7

Income before income tax expense 567.3 448.7

Income tax expense 112.3 83.8

Net income 455.0 364.9

Preferred stock dividend 10.5 10.5

Net income available to common shareholders $ 444.5 $ 354.4

Earnings per common share:

Basic $ $ 1.06 0.84

Diluted 1.05 0.84

(1) Total non-interest expense includes $37.1 million and $41.0 million ofnon-operating expenses for

the nine months ended September 30, 2021 and 2020, respectively. SeeNon-GAAP Financial

Measures and Reconciliation to GAAP beginning.

People's United Financial, Inc.

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

September 30, 2021 June 30, 2021 September 30, 2020

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 $ 6,999.3 $ 2.8 0.16% $ 5,468.5 $ 1.3 0.09% $ 841.5 $ 0.4 0.19%

Securities (2) 10,432.0 59.1 2.27 10,418.3 57.6 2.21 7,922.4 52.5 2.65

Loans:

Commercial real estate 12,906.9 96.5 2.99 13,434.9 101.6 3.02 13,853.1 110.5 3.19

Commercial and industrial 12,759.6 106.6 3.34 13,570.0 110.5 3.26 14,419.8 113.0 3.13

Equipment financing 5,001.7 62.3 4.99 4,933.7 62.5 5.07 4,876.4 65.4 5.37

Residential mortgage 7,437.6 58.9 3.16 7,828.0 64.4 3.29 9,408.0 82.4 3.51

Home equity and other consumer 1,828.2 15.2 3.32 1,916.2 16.2 3.39 2,296.0 19.9 3.47

Total loans 39,934.0 339.5 3.40 41,682.8 355.2 3.41 44,853.3 391.2 3.49

Total earning assets 57,365.3 $ 401.4 2.80% 57,569.6 $ 414.1 2.88% 53,617.2 $ 444.1 3.31%

Other assets 6,511.1 6,360.5 7,676.2

Total assets $ 63,876.4 $ 63,930.1 $ 61,293.4

Liabilities and stockholders' equity:

Deposits:

Non-interest-bearing $ 16,469.5 $ - - % $ 16,324.6 $ - - % $ 13,753.8 $ - - %

Savings, interest-bearing checking

and money market 32,030.8 8.9 0.11 32,088.4 10.1 0.13 28,970.0 16.4 0.23

Time 4,322.2 6.2 0.57 4,627.6 7.0 0.61 6,817.8 20.1 1.18

Total deposits 52,822.5 15.1 0.11 53,040.6 17.1 0.13 49,541.6 36.5 0.29

Borrowings:

Federal Home Loan Bank advances 569.6 1.1 0.79 569.7 1.0 0.70 640.5 1.3 0.79

Customer repurchase agreements 370.5 0.1 0.10 379.6 0.1 0.11 382.6 0.2 0.18

Federal funds purchased - - - 62.6 - 0.09 260.1 - 0.08

Total borrowings 940.1 1.2 0.52 1,011.9 1.1 0.44 1,283.2 1.5 0.46

Notes and debentures 1,001.7 7.2 2.85 1,003.6 7.2 2.89 1,014.0 7.4 2.92

Total funding liabilities 54,764.3 $ 23.5 0.17% 55,056.1 $ 25.4 0.19% 51,838.8 $ 45.4 0.35%

Other liabilities 1,332.8 1,239.8 1,653.3

Total liabilities 56,097.1 56,295.9 53,492.1

Stockholders' equity 7,779.3 7,634.2 7,801.3

Total liabilities and

stockholders' equity $ 63,876.4 $ 63,930.1 $ 61,293.4

Net interest income/spread (3) $ 377.9 2.63% $ 388.7 2.69% $ 398.7 2.96%

Net interest margin 2.64% 2.70% 2.97%

(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 $7.6 million, $7.8 million and$7.3 million for the three months ended

September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

People's United Financial, Inc.

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

September 30, 2021 September 30, 2020

Nine months ended Average Yield/ Average Yield/

(dollars in millions) Balance Interest Rate Balance Interest Rate

Assets:

Short-term investments $ 5,829.9 $ 5.3 0.12% $ 635.9 $ 2.6 0.55%

Securities (2) 10,140.2 173.4 2.28 8,061.0 163.3 2.70

Loans:

Commercial real estate 13,206.3 296.9 3.00 14,219.8 382.5 3.59

Commercial and industrial 13,544.0 335.5 3.30 13,065.7 337.6 3.44

Equipment financing 4,941.5 187.6 5.06 4,908.5 201.2 5.47

Residential mortgage 7,861.4 193.5 3.28 9,820.4 258.0 3.50

Home equity and other consumer 1,926.4 47.9 3.31 2,475.7 70.7 3.81

Total loans 41,479.6 1,061.4 3.41 44,490.1 1,250.0 3.75

Total earning assets 57,449.7 $ 1,240.1 2.88% 53,187.0 $ 1,415.9 3.55%

Other assets 6,504.1 7,395.1

Total assets $ 63,953.8 $ 60,582.1

Liabilities and stockholders' equity:

Deposits:

Non-interest-bearing $ 16,207.1 $ - - % $ 12,233.7 $ - - %

Savings, interest-bearing checking

and money market 31,980.5 31.8 0.13 27,111.2 77.5 0.38

Time 4,725.4 23.1 0.65 8,046.8 79.6 1.32

Total deposits 52,913.0 54.9 0.14 47,391.7 157.1 0.44

Borrowings:

Federal Home Loan Bank advances 569.7 3.1 0.74 1,639.6 12.6 1.02

Customer repurchase agreements 390.8 0.4 0.11 356.0 0.9 0.35

Federal funds purchased 70.5 - 0.09 847.7 5.4 0.85

Total borrowings 1,031.0 3.5 0.46 2,843.3 18.9 0.89

Notes and debentures 1,004.3 21.6 2.87 1,009.1 24.5 3.24

Total funding liabilities 54,948.3 $ 80.0 0.19% 51,244.1 $ 200.5 0.52%

Other liabilities 1,331.7 1,550.5

Total liabilities 56,280.0 52,794.6

Stockholders' equity 7,673.8 7,787.5

Total liabilities and

stockholders' equity $ 63,953.8 $ 60,582.1

Net interest income/spread (3) $ 1,160.1 2.69% $ 1,215.4 3.03%

Net interest margin 2.69% 3.05%

(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 $23.0 million and $22.4 millionfor the nine months

ended September 30, 2021 and 2020, respectively.

People's United Financial, Inc.

NON-PERFORMING ASSETS

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

(dollars in millions) 2021 2021 2021 2020 2020

Non-accrual loans:

Commercial:

Commercial real estate $ 98.7 $ 96.1 $ 90.2 $ 60.4 $ 85.3

Commercial and industrial 57.2 57.0 69.2 76.4 86.7

Equipment financing 99.2 107.2 118.1 109.3 49.0

Total Commercial 255.1 260.3 277.5 246.1 221.0

Retail:

Residential mortgage 49.1 49.5 56.9 62.3 62.9

Home equity 16.3 18.1 18.7 20.5 22.1

Other consumer - 0.1 0.2 0.2 0.2

Total Retail 65.4 67.7 75.8 83.0 85.2

Total non-accrual loans (1) 320.5 328.0 353.3 329.1 306.2

Real estate owned:

Residential 1.6 1.6 1.5 3.2 1.9

Commercial - 3.5 3.5 3.6 3.6

Total real estate owned 1.6 5.1 5.0 6.8 5.5

Repossessed assets 7.4 5.6 5.4 5.7 9.7

Total non-performing assets $ 329.5 $ 338.7 $ 363.7 $ 341.6 $ 321.4

Non-accrual loans as a percentage of total loans 0.81 % 0.79 % 0.83 % 0.75 % 0.68 %

Non-performing assets as a percentage of:

Total loans, real estate owned and repossessed assets 0.83 0.82 0.85 0.78 0.71

Tangible stockholders' equity and allowance

for credit losses 6.20 6.43 7.05 6.59 6.41

(1) Reported net of government guarantees totaling $1.1 million at September30, 2021, $1.2 million at June 30, 2021,

$2.5 million at March 31, 2021, $2.5 million at December 31, 2020 and$2.4 million at September 30, 2020.

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) 2021 2021 2021 2020 2020

Allowance for credit losses on loans:

Balance at beginning of period $ 348.1 $ 399.1 $ 425.1 $ 423.8 $ 414.0

Charge-offs (13.2) (13.9) (17.8) (16.7) (19.3)

Recoveries 5.5 3.6 5.4 3.3 2.0

Net loan charge-offs (7.7) (10.3) (12.4) (13.4) (17.3)

Provision for credit losses on loans 12.0 (40.7) (13.6) 14.7 27.1

Balance at end of period $ 352.4 $ 348.1 $ 399.1 $ 425.1 $ 423.8

Allowance for credit losses on loans

as a percentage of:

Total loans 0.89 % 0.84 % 0.93 % 0.97 % 0.94 %

Non-accrual loans 109.9 106.1 113.0 129.1 138.4

NET LOAN CHARGE-OFFS (RECOVERIES)

Three Months Ended

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

(dollars in millions) 2021 2021 2021 2020 2020

Commercial:

Commercial real estate $ 3.7 $ 0.8 $ 5.8 $ 0.1 $ 4.1

Commercial and industrial 0.3 3.0 (0.5) 6.6 6.9

Equipment financing 4.2 6.9 7.2 6.8 6.2

Total 8.2 10.7 12.5 13.5 17.2

Retail:

Residential mortgage (0.7) (0.4) (0.3) (0.3) (0.2)

Home equity (0.1) (0.2) (0.2) - -

Other consumer 0.3 0.2 0.4 0.2 0.3

Total (0.5) (0.4) (0.1) (0.1) 0.1

Total net loan charge-offs $ 7.7 $ 10.3 $ 12.4 $ 13.4 $ 17.3

Net loan charge-offs to

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

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 accepted accounting principles ("GAAP"), management routinelysupplements its evaluation with an analysis

of certain non-GAAP financial measures, such as the efficiency and tangiblecommon equity ratios, tangible book value per

common share and operating earnings metrics. Management believes these non-GAAPfinancial measures provide

information useful to investors in understanding People's United's underlyingoperating performance and trends, and

facilitates comparisons with the performance of other financial institutions.Further, the efficiency ratio and operating

earnings metrics are used by management in its assessment of financialperformance, including non-interest expense

control, while the tangible common equity ratio and tangible book value percommon share are used to analyze the

relative strength of People's United's capital position.

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 (excludingoperating lease expense, goodwill impairment

charges, amortization of other acquisition-related intangible assets, losses onreal estate assets and non-recurring

expenses) (the numerator) to (ii) net interest income on a fully taxableequivalent ("FTE") basis plus total non-interest

income (including the FTE adjustment on bank-owned life insurance ("BOLI")income, the netting of operating lease

expense and excluding gains and losses on sales of assets other thanresidential mortgage loans and acquired loans, and

non-recurring income) (the denominator). People's United generally considers anitem of income or expense to be

non-recurring if it is not similar to an item of income or expense of a typeincurred within the last two years and is not

similar to an item of income or expense of a type reasonably expected to beincurred within the following two years.

Operating earnings exclude from net income available to commonshareholders those items that management considers

to be of such a non-recurring or infrequent nature that, by excluding suchitems (net of income taxes), People's United's

results can be measured and assessed on a more consistent basis from period toperiod. 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 houseassets and related lease termination costs;

(iv) severance-related costs; and (v) charges related to executive-levelmanagement separation costs, are generally also

excluded when calculating the efficiency ratio. Operating earnings per commonshare ("EPS") is derived by determining the

per common share impact of the respective adjustments to arrive at operatingearnings and adding (subtracting) such

amounts to (from) diluted EPS, as reported. Operating return on average assetsis calculated by dividing operating earnings

(annualized) by average total assets. Operating return on average tangiblecommon equity is calculated by dividing

operating earnings (annualized) by average tangible common equity. Theoperating common dividend payout ratio is

calculated by dividing common dividends paid by operating earnings for therespective 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 losses through a credit cycle as well as providing anadditional basis for comparing the Company's

results of operation between periods by isolating the impact of the provisionfor 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 other acquisition-related intangible assets) (thenumerator) to (ii) tangible assets (total assets less

goodwill and other acquisition-related intangible assets) (the denominator).Tangible book value per common share is

calculated by dividing tangible common equity by common shares (total commonshares issued, less common shares

classified as treasury shares and unallocated Employee Stock Ownership Plan("ESOP") common shares).

In light of diversity in presentation among financial institutions, themethodologies used by People's United for

determining the non-GAAP financial measures discussed above may differ fromthose used by other financial

institutions.

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING NON-INTEREST EXPENSE AND EFFICIENCY RATIO

Three Months Ended Nine Months Ended

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

(dollars in millions) 2021 2021 2021 2020 2020 2021 2020

Total non-interest expense $ 289.2 $ 305.0 $ 311.9 $ 646.4 $ 293.6 $ 906.1 $ 917.7

Adjustments to arrive at operating

non-interest expense:

Merger-related expenses (4.7) (9.2) (7.5) (4.9) (4.6) (21.4) (41.0)

Stop & Shop contract termination costs (1.6) (2.0) (12.1) - - (15.7) -

Goodwill impairment charge - - - (353.0) - - -

Total (6.3) (11.2) (19.6) (357.9) (4.6) (37.1) (41.0)

Operating non-interest expense 282.9 293.8 292.3 288.5 289.0 869.0 876.7

Adjustments:

Amortization of other acquisition-related

intangible assets (8.9) (8.8) (11.0) (9.7) (10.2) (28.7) (31.1)

Operating lease expense (7.0) (7.6) (7.8) (8.5) (9.3) (22.4) (27.9)

Other (1) (1.2) (1.3) (1.7) (1.3) (5.1) (4.2) (8.9)

Total non-interest expense for

efficiency ratio $ 265.8 $ 276.1 $ 271.8 $ 269.0 $ 264.4 $ 813.7 $ 808.8

Net interest income (FTE basis) $ 377.9 $ 388.7 $ 393.5 $ 390.2 $ 398.7 $ 1,160.1 $ 1,215.4

Total non-interest income 100.4 99.0 94.6 178.2 101.1 294.0 314.5

Total revenues 478.3 487.7 488.1 568.4 499.8 1,454.1 1,529.9

Adjustments:

Operating lease expense (7.0) (7.6) (7.8) (8.5) (9.3) (22.4) (27.9)

BOLI FTE adjustment 1.0 0.7 0.6 0.9 0.8 2.3 2.6

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

Other (2) (4.0) - (1.1) - (0.1) (5.1) (0.4)

Total revenues for efficiency ratio $ 468.3 $ 480.8 $ 479.8 $ 484.9 $ 491.2 $ 1,428.9 $ 1,504.2

Efficiency ratio 56.8% 57.4% 56.6% 55.5% 53.8% 56.9% 53.8%

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

efficiency ratio include certain franchise taxes and real estate ownedexpenses.

(2) Items classified as "other" and deducted from total revenues for purposesof calculating the efficiency

ratio include, as applicable, asset write-offs and gains/lossesassociated with 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) 2021 2021 2021 2020 2020 2021 2020

Net interest income $ 370.3 $ 380.9 $ 385.9 $ 382.8 $ 391.4 $ 1,137.1 $ 1,193.0

Non-interest income 100.4 99.0 94.6 178.2 101.1 294.0 314.5

Non-interest expense (289.2) (305.0) (311.9) (646.4) (293.6) (906.1) (917.7)

Pre-provision net revenue 181.5 174.9 168.6 (85.4) 198.9 525.0 589.8

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

Non-operating expense 6.3 11.2 19.6 357.9 4.6 37.1 41.0

Operating pre-provision net revenue $ 187.8 $ 186.1 $ 188.2 $ 196.6 $ 203.5 $ 562.1 $ 630.8

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) 2021 2021 2021 2020 2020 2021 (1) 2020

Net income (loss) available to common shareholders $ 136.2 $ 167.3 $ 141.0 $ (148.8) $ 141.1 $ 444.5 $ 354.4

Adjustments to arrive at operating earnings:

Merger-related expenses 4.7 9.2 7.5 4.9 4.6 21.4 41.0

Stop & Shop contract termination costs 1.6 2.0 12.1 - - 15.7 -

Goodwill impairment charge (2) - - - 353.0 - - -

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

Total pre-tax adjustments 6.3 11.2 19.6 282.0 4.6 37.1 41.0

Tax effect (2) (1.4) (2.4) (4.1) 14.5 (1.0) (7.9) (8.6)

Total adjustments, net of tax 4.9 8.8 15.5 296.5 3.6 29.2 32.4

Operating earnings $ 141.1 $ 176.1 $ 156.5 $ 147.7 $ 144.7 $ 473.7 $ 386.8

Diluted EPS, as reported $ 0.32 $ 0.39 $ 0.33 $ (0.35) $ 0.34 $ 1.05 $ 0.84

Adjustments to arrive at operating EPS:

Merger-related expenses 0.01 0.02 0.02 0.01 - 0.05 0.07

Stop & Shop contract termination costs - - 0.02 - - 0.02 -

Goodwill impairment charge (2) - - - 0.83 - - -

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

Total adjustments per common share 0.01 0.02 0.04 0.70 - 0.07 0.07

Operating EPS $ 0.33 $ 0.41 $ 0.37 $ 0.35 $ 0.34 $ 1.12 $ 0.91

Average total assets $ 63,876 $ 63,930 $ 64,057 $ 62,396 $ 61,293 $ 63,954 $ 60,582

Operating return on

average assets (annualized) 0.88% 1.10% 0.98% 0.95% 0.94% 0.99% 0.85%

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

(2) The goodwill impairment charge for the three months ended December 31, 2020is non-tax-deductible.

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) 2021 2021 2021 2020 2020 2021 2020

Operating earnings $ 141.1 $ 176.1 $ 156.5 $ 147.7 $ 144.7 $ 473.7 $ 386.8

Average stockholders' equity $ 7,779 $ 7,634 $ 7,606 $ 7,884 $ 7,801 $ 7,674 $ 7,788

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

Average common equity 7,535 7,390 7,362 7,640 7,557 7,430 7,544

Less: Average goodwill and average other

acquisition-related intangible assets 2,822 2,831 2,842 3,213 3,249 2,831 3,259

Average tangible common equity $ 4,713 $ 4,559 $ 4,520 $ 4,427 $ 4,308 $ 4,599 $ 4,285

Operating return on average tangible

common equity (annualized) 12.0% 15.4% 13.8% 13.3% 13.4% 13.7% 12.0%

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) 2021 2021 2021 2020 2020 2021 2020 Common dividends paid $ 77.4 $ 77.3 $ 75.7 $ 75.6 $ 75.7 $ 230.4 $ 228.5 Operating earnings $ 141.1 $ 176.1 $ 156.5 $ 147.7 $ 144.7 $ 473.7 $ 386.8 Operating common dividend payout ratio 54.8% 43.9% 48.4% 51.2% 52.3% 48.6% 59.1% TANGIBLE COMMON EQUITY RATIO Sept. 30, June 30, March 31, Dec. 31, Sept. 30, (dollars in millions) 2021 2021 2021 2020 2020 Total stockholders' equity $ 7,783 $ 7,750 $ 7,592 $ 7,603 $ 7,831 Less: Preferred stock 244 244 244 244 244 Common equity 7,539 7,506 7,348 7,359 7,587 Less: Goodwill and other acquisition-related intangible assets 2,817 2,826 2,835 2,846 3,244 Tangible common equity $ 4,722 $ 4,680 $ 4,513 $ 4,513 $ 4,343 Total assets $ 63,673 $ 63,341 $ 64,172 $ 63,092 $ 60,871 Less: Goodwill and other acquisition-related intangible assets 2,817 2,826 2,835 2,846 3,244 Tangible assets $ 60,856 $ 60,515 $ 61,337 $ 60,246 $ 57,627 Tangible common equity ratio 7.8% 7.7% 7.4% 7.5% 7.5% TANGIBLE BOOK VALUE PER COMMON SHARE Sept. 30, June 30, March 31, Dec. 31, Sept. 30, (in millions, except per common share data) 2021 2021 2021 2020 2020 Tangible common equity $ 4,722 $ 4,680 $ 4,513 $ 4,513 $ 4,343 Common shares issued 536.75 536.75 536.20 533.68 533.67 Less: Shares classified as treasury shares 108.98 108.98 108.98 109.00 109.00 Common shares outstanding 427.77 427.77 427.22 424.68 424.67 Less: Unallocated ESOP shares 5.31 5.40 5.49 5.57 5.66 Common shares 422.46 422.37 421.73 419.11 419.01 Tangible book value per common share $ 11.18 $ 11.08 $ 10.70 $ 10.77 $ 10.37

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SOURCE People's United Bank