Company Announcements

People's United Financial Reports Third Quarter Net Income of $135.1 Million, or $0.33 per Common Share

BRIDGEPORT, Conn., Oct. 17, 2019People's United Financial, Inc. (NASDAQ: PBCT) today reported results for the third quarter 2019. These results along with comparison periods are summarized below:










($ in millions, except per common share data)









Three Months Ended





Sep. 30, 2019


Jun. 30, 2019


Sep. 30, 2018











Net income


$ 135.1


$ 133.2


$ 117.0


Net income available


131.6


129.7


113.5



to common shareholders






Per common share


0.33


0.33


0.33











Operating earnings1


135.5


134.8


113.8



Per common share


0.34


0.34


0.33




















Net interest income


$ 348.7


$ 348.1


$ 306.4



Net interest margin


3.12%


3.12%


3.15%











Non-interest income


106.0


106.3


92.3




















Non-interest expense


$ 281.4


$ 278.4


$ 241.3


Operating non-interest expense1

276.4


271.9


240.8











Efficiency ratio


56.8%


55.8%


56.7%




















Average balances








Loans


$ 38,317


$ 38,229


$ 32,166


Deposits


38,657


39,211


33,058











Period-end balances








Loans


38,781


38,557


32,199


Deposits


38,574


39,467


33,210











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




"Our performance in the third quarter further demonstrates our success in building a premier banking franchise for the long-term," said Jack Barnes, Chairman and Chief Executive Officer. "Strategic investments in talent and digital enhancements, along with thoughtful acquisitions, have broadened the Company's capabilities and continue to strengthen its earnings power. As such, we are pleased to report operating earnings of $135.5 million, an increase of 19 percent from a year ago and an operating return on average tangible common equity of 14.4 percent. The acquisition of United Financial is on track to close in the fourth quarter and we remain confident in achieving the transaction's attractive financial returns. The addition of United bolsters our already significant share of retail households and commercial clients across central Connecticut and western Massachusetts. We are excited for their long-tenured, well-established customer base to join People's United and benefit from our broader array of products, services and technology offerings."

"Third quarter financial results were highlighted by a stable net interest margin, continued strong fee income, well-maintained expenses and a lower effective tax rate," stated David Rosato, Senior Executive Vice President and Chief Financial Offer. "Net interest margin of 3.12 percent was unchanged linked-quarter despite declining interest rates. The margin benefited from our proactive management of deposit costs and new business yields remaining higher than the total loan portfolio yield. Commercial period-end loans grew $505 million or two percent from June 30th primarily driven by mortgage warehouse lending, equipment finance and Boston commercial real estate. Conversely, retail period-end loans declined $281 million or two percent mostly due to our planned reduction of residential mortgages as we continue to remix the balance sheet with a focus on higher yielding portfolios. Period-end deposits declined $893 million or two percent partially due to second quarter ending balances including a $500 million short-term commercial deposit, which was withdrawn in July as expected. On an average basis, deposits were down one percent primarily driven by a reduction in savings and time balances, partially offset by an increase in non-interest bearing deposits."






















As of and for the Three Months Ended





Sep. 30, 2019


Jun. 30, 2019


Sep. 30, 2018











Asset Quality

















Net loan charge-offs


0.06%


0.05%


0.09%


to average total loans





Originated non-performing loans


0.48%


0.52%


0.53%


as a percentage of originated loans























Returns

















Return on average assets1


1.05%


1.04%


1.06%


Return on average tangible common equity1

14.0%


14.1%


14.5%




















Capital Ratios

















People's United Financial, Inc.








Tangible common equity / tangible assets

7.8%


7.7%


7.6%


Tier 1 leverage


8.7%


8.7%


8.7%


Common equity tier 1


10.1%


10.1%


10.3%


Tier 1 risk-based


10.7%


10.7%


11.0%


Total risk-based


12.0%


12.0%


12.8%











People's United Bank, N.A.








Tier 1 leverage



8.8%


8.9%


9.2%


Common equity tier 1



10.8%


11.0%


11.6%


Tier 1 risk-based



10.8%


11.0%


11.6%


Total risk-based



12.2%


12.4%


13.6%











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


The Board of Directors declared a $0.1775 per common share quarterly dividend payable November 15, 2019 to shareholders of record on October 31, 2019. Based on the closing stock price on October 16, 2019, the dividend yield on People's United Financial common stock is 4.5 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 $52 billion in assets. Founded in 1842, People's United Bank offers commercial and retail banking through a network of over 400 retail locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine, as well as wealth management and insurance solutions. The company also provides specialized commercial services to customers nationwide.

3Q 2019 Financial Highlights

Summary

  • Net income totaled $135.1 million, or $0.33 per common share.
    • Net income available to common shareholders totaled $131.6 million.
    • Operating earnings totaled $135.5 million, or $0.34 per common share (see Non-GAAP Financial Measures and Reconciliation to GAAP).
  • Net interest income totaled $348.7 million in 3Q19 compared to $348.1 million in 2Q19.
  • Net interest margin unchanged from 2Q19 at 3.12% reflecting:
    • Lower rates on deposits (increase of five basis points).
    • One additional calendar day in 3Q19 (increase of two basis points).
    • Lower yields on the loan and securities portfolios (decrease of five basis points).
    • Higher rates on borrowings (decrease of two basis points).
  • Provision for loan losses totaled $7.8 million.
    • Net loan charge-offs totaled $5.8 million.
    • Net loan charge-off ratio of 0.06% in 3Q19.
  • Non-interest income totaled $106.0 million in 3Q19 compared to $106.3 million in 2Q19.
    • Commercial banking lending fees increased $1.6 million.
    • Insurance revenue increased $1.6 million.
    • Bank service charges increased $0.6 million.
    • Customer interest rate swap income decreased $2.0 million.
    • At September 30, 2019, assets under discretionary management totaled $9.2 billion.
  • Non-interest expense totaled $281.4 million in 3Q19 compared to $278.4 million in 2Q19.
    • Operating non-interest expense totaled $276.4 million in 3Q19 (see Non-GAAP Financial Measures and Reconciliation to GAAP).
    • Compensation and benefits expense, excluding $0.8 million and $1.5 million of merger-related expenses in 3Q19 and 2Q19, respectively, decreased $2.5 million, primarily reflecting lower payroll costs in 3Q19.
    • Regulatory assessment expense decreased $1.2 million.
    • Professional and outside services expense, excluding $3.7 million and $4.7 million of merger-related expenses in 3Q19 and 2Q19, respectively, decreased $0.2 million.
    • Other non-interest expense increased $8.0 million in 3Q19 compared to 2Q19, reflecting costs associated with certain legal and other one-time operational matters.
    • The efficiency ratio was 56.8% for 3Q19 compared to 55.8% for 2Q19 and 56.7% for 3Q18 (see Non-GAAP Financial Measures and Reconciliation to GAAP).
  • The effective income tax rate was 18.4% for 3Q19 and 20.0% for the first nine months of 2019, compared to 18.8% for the full-year of 2018.
    • The rate in 2018 reflects a $9.2 million benefit recognized in connection with tax reform.

Commercial Banking

  • Commercial loans totaled $27.5 billion at September 30, 2019, an increase of $505 million from June 30, 2019.
    • The mortgage warehouse portfolio increased $429 million.
    • The equipment financing portfolio increased $125 million.
    • The New York multifamily portfolio decreased $89 million.
  • Average commercial loans totaled $26.9 billion in 3Q19, an increase of $422 million from 2Q19.
    • The average mortgage warehouse portfolio increased $270 million.
    • The average equipment financing portfolio increased $130 million.
    • The average New York multifamily portfolio decreased $73 million.
  • Commercial deposits totaled $14.9 billion at September 30, 2019 compared to $15.1 billion at June 30, 2019.
    • A $500 million short-term deposit was withdrawn in July.
  • The ratio of originated non-performing commercial loans to originated commercial loans was 0.44% at September 30, 2019 compared to 0.48% at June 30, 2019.
  • Non-performing commercial assets, excluding acquired non-performing loans, totaled $118.3 million at September 30, 2019 compared to $117.6 million at June 30, 2019.
  • For the originated commercial loan portfolio, the allowance for loan losses as a percentage of loans was 0.89% at September 30, 2019 compared to 0.91% at June 30, 2019.
  • The originated commercial allowance for loan losses represented 205% of originated non-performing commercial loans at September 30, 2019 compared to 190% at June 30, 2019.

Retail Banking

  • Residential mortgage loans totaled $9.3 billion at September 30, 2019, a decrease of $224 million from June 30, 2019.
    • Average residential mortgage loans totaled $9.4 billion in 3Q19, a decrease of $280 million from 2Q19.
  • Home equity loans totaled $2.0 billion at September 30, 2019, a decrease of $53 million from June 30, 2019.
    • Average home equity loans totaled $2.0 billion in 3Q19, a decrease of $51 million from 2Q19.
  • Retail deposits totaled $23.7 billion at September 30, 2019 compared to $24.4 billion at June 30, 2019.
  • The ratio of originated non-performing residential mortgage loans to originated residential mortgage loans was 0.55% at September 30, 2019 compared to 0.57% at June 30, 2019.
  • The ratio of originated non-performing home equity loans to originated home equity loans was 0.85% at September 30, 2019 compared to 0.86% at June 30, 2019.
  • For the originated retail loan portfolio, the allowance for loan losses as a percentage of loans was 0.35% at September 30, 2019 compared to 0.34% at June 30, 2019.
  • The originated retail allowance for loan losses represented 57% of originated non-performing retail loans at September 30, 2019 compared to 55% at June 30, 2019.

Conference Call

On October 17, 2019, 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; and (10) changes in regulation resulting from or relating to financial reform legislation. People's United Financial does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Access Information About People's United Financial at www.peoples.com .





































People's United Financial, Inc.



FINANCIAL HIGHLIGHTS

Three Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions, except per common share data)

2019

2019

2019

2018

2018

Earnings Data:

Net interest income (fully taxable equivalent)

$

356.0

$

355.4

$

340.0

$

339.5

$

313.0

Net interest income

348.7

348.1

332.8

332.6

306.4

Provision for loan losses

7.8

7.6

5.6

9.9

8.2

Non-interest income (1)

106.0

106.3

94.6

88.7

92.3

Non-interest expense (1)

281.4

278.4

277.2

262.7

241.3

Income before income tax expense

165.5

168.4

144.6

148.7

149.2

Net income

135.1

133.2

114.6

132.9

117.0

Net income available to common shareholders (1)

131.6

129.7

111.1

129.4

113.5

Selected Statistical Data:

Net interest margin (2)

3.12

%

3.12

%

3.20

%

3.17

%

3.15

%

Return on average assets (1), (2)

1.05

1.04

0.96

1.11

1.06

Return on average common equity (2)

7.7

7.7

7.0

8.3

8.0

Return on average tangible common equity (1), (2)

14.0

14.1

13.0

14.9

14.5

Efficiency ratio (1)

56.8

55.8

57.3

55.1

56.7

Common Share Data:

Earnings per common share:

Basic

$

0.34

$

0.33

$

0.30

$

0.35

$

0.33

Diluted (1)

0.33

0.33

0.30

0.35

0.33

Dividends paid per common share

0.1775

0.1775

0.1750

0.1750

0.1750

Common dividend payout ratio (1)

53.1

%

53.8

%

58.6

%

50.3

%

52.9

%

Book value per common share (end of period)

$

17.54

$

17.34

$

17.13

$

16.95

$

16.69

Tangible book value per common share (end of period) (1)

9.74

9.51

9.35

9.23

9.19

Stock price:

High

17.10

17.66

18.03

17.46

19.00

Low

13.81

15.24

14.25

13.66

16.95

Close (end of period)

15.64

16.78

16.44

14.43

17.12

Common shares (end of period) (in millions)

392.57

392.24

372.18

371.02

342.36

Weighted average diluted common shares (in millions)

394.45

394.57

374.09

372.83

345.04

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

(2) Annualized.

People's United Financial, Inc.

FINANCIAL HIGHLIGHTS

Nine Months Ended

September 30,

(dollars in millions, except per common share data)

2019

2018

Earnings Data:

Net interest income (fully taxable equivalent)

$

1,051.4

$

922.9

Net interest income

1,029.6

903.4

Provision for loan losses

21.0

20.1

Non-interest income

306.9

277.6

Non-interest expense (1)

837.0

733.4

Income before income tax expense

478.5

427.5

Net income

383.0

335.1

Net income available to common shareholders (1)

372.5

324.6

Selected Statistical Data:

Net interest margin (2)

3.14

%

3.10

%

Return on average assets (1), (2)

1.02

1.01

Return on average common equity (2)

7.5

7.7

Return on average tangible common equity (1), (2)

13.7

14.1

Efficiency ratio (1)

56.6

58.2

Common Share Data:

Earnings per common share:

Basic

$

0.97

$

0.95

Diluted (1)

0.96

0.94

Dividends paid per common share

0.5300

0.5225

Common dividend payout ratio (1)

55.0

%

55.1

%

Book value per common share (end of period)

$

17.54

$

16.69

Tangible book value per common share (end of period) (1)

9.74

9.19

Stock price:

High

18.03

20.26

Low

13.81

16.95

Close (end of period)

15.64

17.12

Common shares (end of period) (in millions)

392.57

342.36

Weighted average diluted common shares (in millions)

387.78

344.50

(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)

2019

2019

2019

2018

2018

Financial Condition Data:

Total assets

$

52,072

$

51,622

$

48,092

$

47,877

$

44,133

Loans

38,781

38,557

35,515

35,241

32,199

Securities

7,135

7,086

7,176

7,233

7,385

Short-term investments

158

275

106

266

128

Allowance for loan losses

246

244

241

240

238

Goodwill and other acquisition-related intangible assets

3,065

3,073

2,897

2,866

2,569

Deposits

38,574

39,467

36,901

36,159

33,210

Borrowings

4,629

3,400

2,860

3,593

3,392

Notes and debentures

916

912

902

896

886

Stockholders' equity

7,131

7,046

6,621

6,534

5,959

Total risk-weighted assets (1):

People's United Financial, Inc.

39,779

39,026

36,466

35,910

33,181

People's United Bank, N.A.

39,727

38,976

36,447

35,875

33,132

Non-performing assets (2)

182

179

167

186

173

Net loan charge-offs

5.8

4.5

5.1

7.5

7.0

Average Balances:

Loans

$

38,317

$

38,229

$

35,046

$

35,016

$

32,166

Securities (3)

7,041

7,147

7,311

7,479

7,404

Short-term investments

219

214

203

292

193

Total earning assets

45,577

45,591

42,560

42,786

39,763

Total assets

51,524

51,088

47,800

47,721

44,245

Deposits

38,657

39,211

36,450

35,959

33,058

Borrowings

3,855

3,146

2,937

3,456

3,539

Notes and debentures

914

904

896

886

888

Total funding liabilities

43,427

43,261

40,284

40,302

37,485

Stockholders' equity

7,079

6,978

6,562

6,515

5,937

Ratios:

Net loan charge-offs to average total loans (annualized)

0.06

%

0.05

%

0.06

%

0.09

%

0.09

%

Non-performing assets to originated loans,

real estate owned and repossessed assets (2)

0.56

0.56

0.54

0.61

0.57

Originated allowance for loan losses to:

Originated loans (2)

0.75

0.76

0.76

0.77

0.78

Originated non-performing loans (2)

156.0

146.0

157.0

140.9

147.9

Average stockholders' equity to average total assets

13.7

13.7

13.7

13.7

13.4

Stockholders' equity to total assets

13.7

13.6

13.8

13.6

13.5

Tangible common equity to tangible assets (4)

7.8

7.7

7.7

7.6

7.6

Total risk-based capital (1):

People's United Financial, Inc.

12.0

12.0

12.4

12.5

12.8

People's United Bank, N.A.

12.2

12.4

12.9

13.2

13.6

(1) September 30, 2019 amounts and ratios are preliminary.

(2) Excludes acquired loans.

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

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

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF CONDITION

Sept. 30,

June 30,

Dec. 31,

Sept. 30,

(in millions)

2019

2019

2018

2018

Assets

Cash and due from banks

$ 635.2

$ 505.9

$ 665.7

$ 410.5

Short-term investments

157.8

274.8

266.3

127.5

Securities:

Trading debt securities, at fair value

9.3

9.3

8.4

8.3

Equity securities, at fair value

7.8

8.5

8.1

8.9

Debt securities available-for-sale, at fair value

2,978.7

2,971.2

3,121.0

3,312.1

Debt securities held-to-maturity, at amortized cost

3,805.4

3,807.5

3,792.3

3,742.9

Federal Home Loan Bank and Federal Reserve Bank stock, at cost

334.0

289.4

303.4

312.4

Total securities

7,135.2

7,085.9

7,233.2

7,384.6

Loans held-for-sale

24.8

17.4

19.5

15.2

Loans:

Commercial real estate

12,186.9

12,230.7

11,649.6

10,595.5

Commercial and industrial

10,545.9

10,121.8

9,088.9

8,568.6

Equipment financing

4,735.6

4,611.0

4,339.2

4,209.3

Total Commercial Portfolio

27,468.4

26,963.5

25,077.7

23,373.4

Residential mortgage

9,308.7

9,532.6

8,154.2

6,911.9

Home equity and other consumer

2,004.3

2,060.6

2,009.5

1,914.0

Total Retail Portfolio

11,313.0

11,593.2

10,163.7

8,825.9

Total loans

38,781.4

38,556.7

35,241.4

32,199.3

Less allowance for loan losses

(246.0)

(244.0)

(240.4)

(238.0)

Total loans, net

38,535.4

38,312.7

35,001.0

31,961.3

Goodwill and other acquisition-related intangible assets

3,064.9

3,072.9

2,865.7

2,568.9

Bank-owned life insurance

505.6

504.4

467.0

407.7

Premises and equipment, net

258.5

261.0

267.3

243.8

Other assets

1,754.4

1,587.5

1,091.6

1,013.7

Total assets

$ 52,071.8

$ 51,622.5

$ 47,877.3

$ 44,133.2

Liabilities

Deposits:

Non-interest-bearing

$ 9,129.3

$ 8,747.2

$ 8,543.0

$ 8,060.2

Savings

4,616.6

4,847.4

4,116.5

4,048.8

Interest-bearing checking and money market

16,727.2

17,424.8

16,583.3

15,065.3

Time

8,100.4

8,447.9

6,916.2

6,035.9

Total deposits

38,573.5

39,467.3

36,159.0

33,210.2

Borrowings:

Federal Home Loan Bank advances

2,948.5

2,054.4

2,404.5

2,369.7

Federal funds purchased

1,365.0

1,110.0

845.0

735.0

Customer repurchase agreements

315.6

235.2

332.9

261.3

Other borrowings

-

-

11.0

26.0

Total borrowings

4,629.1

3,399.6

3,593.4

3,392.0

Notes and debentures

915.7

911.5

895.8

885.6

Other liabilities

822.8

797.9

695.2

686.5

Total liabilities

44,941.1

44,576.3

41,343.4

38,174.3

Stockholders' Equity

Preferred stock

244.1

244.1

244.1

244.1

Common stock

4.9

4.9

4.7

4.4

Additional paid-in capital

6,901.5

6,890.7

6,549.3

6,054.3

Retained earnings

1,449.3

1,388.1

1,284.8

1,220.9

Unallocated common stock of Employee Stock Ownership Plan, at cost

(124.7)

(126.5)

(130.1)

(131.9)

Accumulated other comprehensive loss

(182.3)

(193.0)

(256.8)

(270.8)

Treasury stock, at cost

(1,162.1)

(1,162.1)

(1,162.1)

(1,162.1)

Total stockholders' equity

7,130.7

7,046.2

6,533.9

5,958.9

Total liabilities and stockholders' equity

$ 52,071.8

$ 51,622.5

$ 47,877.3

$ 44,133.2

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)

2019

2019

2019

2018

2018

Interest and dividend income:

Commercial real estate

$ 136.6

$ 139.9

$ 132.7

$ 130.2

$ 114.7

Commercial and industrial

113.4

111.4

103.9

100.1

93.2

Equipment financing

65.3

62.8

59.0

56.7

56.2

Residential mortgage

84.7

85.5

70.7

70.2

56.0

Home equity and other consumer

24.7

25.7

24.9

24.4

22.0

Total interest on loans

424.7

425.3

391.2

381.6

342.1

Securities

44.7

46.2

47.8

48.5

46.6

Short-term investments

1.3

1.2

1.3

1.4

1.1

Loans held-for-sale

0.2

0.1

0.2

0.3

0.2

Total interest and dividend income

470.9

472.8

440.5

431.8

390.0

Interest expense:

Deposits

92.2

96.6

81.2

70.6

56.9

Borrowings

21.5

19.3

17.7

20.0

18.2

Notes and debentures

8.5

8.8

8.8

8.6

8.5

Total interest expense

122.2

124.7

107.7

99.2

83.6

Net interest income

348.7

348.1

332.8

332.6

306.4

Provision for loan losses

7.8

7.6

5.6

9.9

8.2

Net interest income after provision for loan losses

340.9

340.5

327.2

322.7

298.2

Non-interest income:

Bank service charges

27.0

26.4

25.2

26.9

24.9

Investment management fees

17.3

17.1

16.5

16.4

17.4

Operating lease income

13.0

12.7

12.7

12.0

11.0

Commercial banking lending fees

11.8

10.2

7.8

9.6

7.9

Insurance revenue

10.3

8.7

10.5

6.7

9.8

Cash management fees

7.3

7.2

6.8

6.6

7.0

Customer interest rate swap income, net

5.6

7.6

3.0

6.3

2.8

Brokerage commissions

2.6

2.6

2.8

3.3

3.2

Net security gains (losses) (1)

-

0.1

-

(10.0)

0.1

Other non-interest income

11.1

13.7

9.3

10.9

8.2

Total non-interest income

106.0

106.3

94.6

88.7

92.3

Non-interest expense:

Compensation and benefits

158.1

161.3

155.4

151.5

135.7

Occupancy and equipment

45.0

44.4

44.3

44.6

41.6

Professional and outside services

23.7

24.9

20.0

21.4

17.0

Operating lease expense

9.9

9.9

9.4

9.8

8.9

Amortization of other acquisition-related intangible assets

8.0

8.0

6.7

6.9

4.9

Regulatory assessments

5.3

6.5

7.0

7.4

10.0

Other non-interest expense

31.4

23.4

34.4

21.1

23.2

Total non-interest expense (1)

281.4

278.4

277.2

262.7

241.3

Income before income tax expense

165.5

168.4

144.6

148.7

149.2

Income tax expense (1)

30.4

35.2

30.0

15.8

32.2

Net income

135.1

133.2

114.6

132.9

117.0

Preferred stock dividend

3.5

3.5

3.5

3.5

3.5

Net income available to common shareholders

$ 131.6

$ 129.7

$ 111.1

$ 129.4

$ 113.5

Earnings per common share:

Basic

$ 0.34

$ 0.33

$ 0.30

$ 0.35

$ 0.33

Diluted

0.33

0.33

0.30

0.35

0.33

(1) Net security gains (losses) for the three months ended December 31, 2018 include $10.0 million of security losses, which are

considered non-operating, incurred as a tax planning strategy in response to tax reform-related benefits recognized in the period.

Total non-interest expense includes $5.0 million, $6.5 million, $15.0 million, $8.0 million and $0.5 million of non-operating expenses

for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018,

respectively. Income tax expense for the three months ended December 31, 2018 includes a $9.2 million benefit recognized in

connection with tax reform, which is considered non-operating. See Non-GAAP Financial Measures and Reconciliation to GAAP.

People's United Financial, Inc.

CONSOLIDATED STATEMENTS OF INCOME

Nine Months Ended

September 30,

(in millions, except per common share data)

2019

2018

Interest and dividend income:

Commercial real estate

$ 409.2

$ 333.2

Commercial and industrial

328.7

265.6

Equipment financing

187.0

155.6

Residential mortgage

240.9

166.0

Home equity and other consumer

75.4

64.2

Total interest on loans

1,241.2

984.6

Securities

138.7

135.7

Short-term investments

3.8

3.6

Loans held for sale

0.6

0.6

Total interest and dividend income

1,384.3

1,124.5

Interest expense:

Deposits

270.0

145.5

Borrowings

58.6

50.9

Notes and debentures

26.1

24.7

Total interest expense

354.7

221.1

Net interest income

1,029.6

903.4

Provision for loan losses

21.0

20.1

Net interest income after provision for loan losses

1,008.6

883.3

Non-interest income:

Bank service charges

78.6

73.0

Investment management fees

50.9

52.3

Operating lease income

38.4

32.9

Commercial banking lending fees

29.8

27.7

Insurance revenue

29.5

27.9

Cash management fees

21.2

20.6

Customer interest rate swap income, net

16.2

8.3

Brokerage commissions

8.0

9.5

Other non-interest income

34.3

25.4

Total non-interest income

306.9

277.6

Non-interest expense:

Compensation and benefits

474.8

411.4

Occupancy and equipment

133.7

123.6

Professional and outside services

68.6

56.2

Operating lease expense

29.2

26.6

Amortization of other acquisition-related intangible assets

22.7

14.9

Regulatory assessments

18.8

30.5

Other non-interest expense

89.2

70.2

Total non-interest expense (1)

837.0

733.4

Income before income tax expense

478.5

427.5

Income tax expense

95.5

92.4

Net income

383.0

335.1

Preferred stock dividend

10.5

10.5

Net income available to common shareholders

$ 372.5

$ 324.6

Earnings per common share:

Basic

$ 0.97

$ 0.95

Diluted

0.96

0.94

(1) Total non-interest expense includes $26.5 million and $3.4 million of non-operating expenses for the

nine months ended September 30, 2019 and 2018, respectively. See Non-GAAP Financial Measures and

Reconciliation to GAAP.

People's United Financial, Inc.

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

September 30, 2019

June 30, 2019

September 30, 2018

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

$ 218.7

$ 1.3

2.33%

$ 214.1

$ 1.2

2.21%

$ 192.5

$ 1.1

2.06%

Securities (2)

7,041.3

49.4

2.80

7,147.1

50.8

2.85

7,404.2

50.8

2.75

Loans:

Commercial real estate

12,194.8

136.6

4.48

12,323.2

139.9

4.54

10,641.4

114.7

4.31

Commercial and industrial

10,059.2

116.0

4.61

9,638.2

114.1

4.74

8,584.8

95.6

4.45

Equipment financing

4,640.6

65.3

5.63

4,510.8

62.8

5.56

4,120.8

56.2

5.47

Residential mortgage

9,392.7

84.9

3.62

9,672.6

85.6

3.54

6,887.3

56.2

3.27

Home equity and other consumer

2,029.2

24.7

4.88

2,084.6

25.7

4.94

1,931.8

22.0

4.55

Total loans

38,316.5

427.5

4.46

38,229.4

428.1

4.48

32,166.1

344.7

4.29

Total earning assets

45,576.5

$ 478.2

4.20%

45,590.6

$ 480.1

4.21%

39,762.8

$ 396.6

3.99%

Other assets

5,947.8

5,496.9

4,481.8

Total assets

$ 51,524.3

$ 51,087.5

$ 44,244.6

Liabilities and stockholders' equity:

Deposits:

Non-interest-bearing

$ 8,777.3

$ -

- %

$ 8,605.6

$ -

- %

$ 8,025.2

$ -

- %

Savings, interest-bearing checking

and money market

21,758.5

53.4

0.98

22,341.3

57.4

1.03

19,031.4

32.6

0.68

Time

8,121.6

38.8

1.91

8,263.8

39.2

1.90

6,001.3

24.3

1.62

Total deposits

38,657.4

92.2

0.95

39,210.7

96.6

0.99

33,057.9

56.9

0.69

Borrowings:

Federal Home Loan Bank advances

2,363.0

14.1

2.39

1,844.0

12.2

2.64

2,560.6

14.0

2.18

Federal funds purchased

1,202.3

6.8

2.26

1,057.8

6.7

2.53

722.7

3.8

2.11

Customer repurchase agreements

290.1

0.6

0.86

240.0

0.4

0.77

234.3

0.3

0.53

Other borrowings

-

-

-

4.3

-

0.64

20.9

0.1

2.05

Total borrowings

3,855.4

21.5

2.23

3,146.1

19.3

2.46

3,538.5

18.2

2.05

Notes and debentures

913.8

8.5

3.73

903.8

8.8

3.89

888.3

8.5

3.83

Total funding liabilities

43,426.6

$ 122.2

1.13%

43,260.6

$ 124.7

1.15%

37,484.7

$ 83.6

0.89%

Other liabilities

1,019.1

848.8

823.3

Total liabilities

44,445.7

44,109.4

38,308.0

Stockholders' equity

7,078.6

6,978.1

5,936.6

Total liabilities and

stockholders' equity

$ 51,524.3

$ 51,087.5

$ 44,244.6

Net interest income/spread (3)

$ 356.0

3.07%

$ 355.4

3.06%

$ 313.0

3.10%

Net interest margin

3.12%

3.12%

3.15%

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

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

(3) The fully taxable equivalent adjustment was $7.3 million, $7.3 million and $6.6 million for the three months ended

September 30, 2019, June 30, 2019 and September 30, 2018, respectively.

People's United Financial, Inc.

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

September 30, 2019

September 30, 2018

Nine months ended

Average

Yield/

Average

Yield/

(dollars in millions)

Balance

Interest

Rate

Balance

Interest

Rate

Assets:

Short-term investments

$ 211.9

$ 3.8

2.37%

$ 274.6

$ 3.6

1.74%

Securities (2)

7,165.4

152.6

2.84

7,298.3

148.0

2.70

Loans:

Commercial real estate

12,037.6

409.2

4.53

10,791.8

333.2

4.12

Commercial and industrial

9,561.1

336.6

4.69

8,521.2

272.8

4.27

Equipment financing

4,504.1

187.0

5.54

3,972.6

155.6

5.22

Residential mortgage

9,077.5

241.5

3.55

6,859.5

166.6

3.24

Home equity and other consumer

2,029.1

75.4

4.95

1,981.1

64.2

4.32

Total loans

37,209.4

1,249.7

4.48

32,126.2

992.4

4.12

Total earning assets

44,586.7

$ 1,406.1

4.20%

39,699.1

$ 1,144.0

3.84%

Other assets

5,564.3

4,423.6

Total assets

$ 50,151.0

$ 44,122.7

Liabilities and stockholders' equity:

Deposits:

Non-interest-bearing

$ 8,563.2

$ -

- %

$ 7,899.0

$ -

- %

Savings, interest-bearing checking

and money market

21,708.6

159.6

0.98

19,296.0

85.7

0.59

Time

7,842.4

110.4

1.88

5,611.6

59.8

1.42

Total deposits

38,114.2

270.0

0.94

32,806.6

145.5

0.59

Borrowings:

Federal Home Loan Bank advances

2,034.1

38.7

2.54

2,748.6

39.7

1.92

Federal funds purchased

1,005.6

18.2

2.41

655.6

9.1

1.85

Customer repurchase agreements

272.1

1.6

0.76

241.7

0.6

0.34

Other borrowings

4.4

0.1

1.86

127.1

1.5

1.60

Total borrowings

3,316.2

58.6

2.35

3,773.0

50.9

1.80

Notes and debentures

904.7

26.1

3.85

891.0

24.7

3.70

Total funding liabilities

42,335.1

$ 354.7

1.12%

37,470.6

$ 221.1

0.79%

Other liabilities

941.0

776.1

Total liabilities

43,276.1

38,246.7

Stockholders' equity

6,874.9

5,876.0

Total liabilities and

stockholders' equity

$ 50,151.0

$ 44,122.7

Net interest income/spread (3)

$ 1,051.4

3.08%

$ 922.9

3.05%

Net interest margin

3.14%

3.10%

(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 $21.8 million and $19.5 million for the nine months ended

September 30, 2019 and 2018, respectively.

People's United Financial, Inc.

Loans acquired in a business combination are initially recorded at fair value with no carryover of an acquired entity's previous

established allowance for loan losses. Accordingly, selected asset quality metrics have been highlighted to distinguish between

the 'originated' portfolio and the 'acquired' portfolio.

NON-PERFORMING ASSETS

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions)

2019

2019

2019

2018

2018

Originated non-performing loans:

Commercial:

Commercial real estate

$

25.1

$

23.2

$

33.6

$

33.5

$

17.2

Commercial and industrial

37.7

45.4

30.3

38.0

44.9

Equipment financing

41.5

42.7

37.5

42.0

49.3

Total

104.3

111.3

101.4

113.5

111.4

Retail:

Residential mortgage

36.6

38.4

35.4

38.9

32.0

Home equity

14.3

14.7

14.1

15.3

14.6

Other consumer

0.1

-

-

-

0.1

Total

51.0

53.1

49.5

54.2

46.7

Total originated non-performing loans (1)

155.3

164.4

150.9

167.7

158.1

REO:

Residential

12.3

8.1

6.9

5.5

4.4

Commercial

7.7

0.6

4.1

8.7

8.7

Total REO

20.0

8.7

11.0

14.2

13.1

Repossessed assets

6.3

5.7

5.6

3.9

2.0

Total non-performing assets

$

181.6

$

178.8

$

167.5

$

185.8

$

173.2

Acquired non-performing loans (contractual amount)

$

21.1

$

34.1

$

42.6

$

50.1

$

32.3

Originated non-performing loans as a percentage

of originated loans

0.48

%

0.52

%

0.49

%

0.55

%

0.53

%

Non-performing assets as a percentage of:

Originated loans, REO and repossessed assets

0.56

0.56

0.54

0.61

0.57

Tangible stockholders' equity and originated

allowance for loan losses

4.21

4.24

4.23

4.76

4.78

(1) Reported net of government guarantees totaling $1.4 million at September 30, 2019, $1.6 million at June 30, 2019,

$1.4 million at March 31, 2019, $1.9 million at December 31, 2018 and $2.5 million at September 30, 2018.

People's United Financial, Inc.

PROVISION AND ALLOWANCE FOR LOAN LOSSES

Three Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions)

2019

2019

2019

2018

2018

Allowance for loan losses on originated loans:

Balance at beginning of period

$

240.1

$

236.9

$

236.3

$

233.9

$

232.8

Charge-offs

(6.8)

(4.4)

(5.6)

(7.3)

(6.4)

Recoveries

2.1

2.2

2.2

1.3

1.0

Net loan charge-offs

(4.7)

(2.2)

(3.4)

(6.0)

(5.4)

Provision for loan losses

6.9

5.4

4.0

8.4

6.5

Balance at end of period

242.3

240.1

236.9

236.3

233.9

Allowance for loan losses on acquired loans:

Balance at beginning of period

3.9

4.0

4.1

4.1

4.0

Charge-offs

(1.4)

(2.9)

(1.9)

(1.8)

(2.0)

Recoveries

0.3

0.6

0.2

0.3

0.4

Net loan charge-offs

(1.1)

(2.3)

(1.7)

(1.5)

(1.6)

Provision for loan losses

0.9

2.2

1.6

1.5

1.7

Balance at end of period

3.7

3.9

4.0

4.1

4.1

Total allowance for loan losses

$

246.0

$

244.0

$

240.9

$

240.4

$

238.0

Originated commercial allowance for loan losses

as a percentage of originated commercial loans

0.89

%

0.91

%

0.91

%

0.93

%

0.94

%

Originated retail allowance for loan losses

as a percentage of originated retail loans

0.35

0.34

0.37

0.36

0.36

Total originated allowance for loan losses

as a percentage of:

Originated loans

0.75

0.76

0.76

0.77

0.78

Originated non-performing loans

156.0

146.0

157.0

140.9

147.9

NET LOAN CHARGE-OFFS (RECOVERIES)

Three Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions)

2019

2019

2019

2018

2018

Commercial:

Commercial real estate

$

(0.2)

$

0.1

$

1.1

$

1.4

$

1.7

Commercial and industrial

1.6

0.2

1.7

1.4

2.2

Equipment financing

4.2

3.9

2.2

4.4

2.9

Total

5.6

4.2

5.0

7.2

6.8

Retail:

Residential mortgage

-

0.1

0.1

-

0.1

Home equity

-

-

(0.2)

0.1

(0.1)

Other consumer

0.2

0.2

0.2

0.2

0.2

Total

0.2

0.3

0.1

0.3

0.2

Total net loan charge-offs

$

5.8

$

4.5

$

5.1

$

7.5

$

7.0

Net loan charge-offs to

average total loans (annualized)

0.06

%

0.05

%

0.06

%

0.09

%

0.09

%

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP

In addition to evaluating People's United Financial Inc. ("People's United") results of operations in accordance with

U.S. generally accepted accounting principles ("GAAP"), management routinely supplements its evaluation with an analysis

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

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

information useful to investors in understanding People's United's underlying operating 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 financial performance, including non-interest expense

control, while the tangible common equity ratio and tangible book value per common 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 cost required by People's United to generate a

dollar of revenue, is the ratio of (i) total non-interest expense (excluding operating lease expense, goodwill impairment

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

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

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

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

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

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

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

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

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

results can be measured and assessed on a more consistent basis from period to period. Items excluded from operating

earnings, which include, but are not limited to: (i) non-recurring gains/losses; (ii) merger-related expenses, including

acquisition integration and other costs; (iii) writedowns of banking house assets and related lease termination costs;

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

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

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

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

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

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

calculated by dividing common dividends paid by operating earnings for the respective period.

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) (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 by dividing tangible common equity by common shares (total common shares issued, less common shares

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

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

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

institutions.

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING NON-INTEREST EXPENSE AND EFFICIENCY RATIO

Three Months Ended

Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

(dollars in millions)

2019

2019

2019

2018

2018

2019

2018

Total non-interest expense

$ 281.4

$ 278.4

$ 277.2

$ 262.7

$ 241.3

$ 837.0

$ 733.4

Adjustments to arrive at operating

non-interest expense:

Merger-related expenses

(5.0)

(6.5)

(15.0)

(8.0)

(0.5)

(26.5)

(3.4)

Total

(5.0)

(6.5)

(15.0)

(8.0)

(0.5)

(26.5)

(3.4)

Operating non-interest expense

276.4

271.9

262.2

254.7

240.8

810.5

730.0

Operating lease expense

(9.9)

(9.9)

(9.4)

(9.8)

(8.9)

(29.2)

(26.6)

Amortization of other acquisition-related

intangible assets

(8.0)

(8.0)

(6.7)

(6.9)

(4.9)

(22.7)

(14.9)

Other (1)

(1.4)

(1.4)

(1.8)

(1.6)

(1.8)

(4.6)

(4.8)

Total non-interest expense for

efficiency ratio

$ 257.1

$ 252.6

$ 244.3

$ 236.4

$ 225.2

$ 754.0

$ 683.7

Net interest income (FTE basis)

$ 356.0

$ 355.4

$ 340.0

$ 339.5

$ 313.0

$ 1,051.4

$ 922.9

Total non-interest income

106.0

106.3

94.6

88.7

92.3

306.9

277.6

Total revenues

462.0

461.7

434.6

428.2

405.3

1,358.3

1,200.5

Adjustments:

Operating lease expense

(9.9)

(9.9)

(9.4)

(9.8)

(8.9)

(29.2)

(26.6)

BOLI FTE adjustment

0.5

0.7

0.6

0.5

0.6

1.8

1.4

Net security (gains) losses

-

(0.1)

-

10.0

(0.1)

(0.1)

(0.2)

Other (2)

0.1

-

0.3

-

-

0.4

-

Total revenues for efficiency ratio

$ 452.7

$ 452.4

$ 426.1

$ 428.9

$ 396.9

$ 1,331.2

$ 1,175.1

Efficiency ratio

56.8%

55.8%

57.3%

55.1%

56.7%

56.6%

58.2%

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

certain franchise taxes and real estate owned expenses.

(2) Items classified as "other" and added to total revenues for purposes of calculating the efficiency ratio include, as applicable,

asset write-offs and gains/losses associated with the sale of branch locations.

People's United Financial, Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - Continued

OPERATING EARNINGS

Three Months Ended

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)

2019

2019

2019

2018

2018

2019

2018

Net income available to common shareholders

$ 131.6

$ 129.7

$ 111.1

$ 129.4

$ 113.5

$ 372.5

$ 324.6

Adjustments to arrive at operating earnings:

Merger-related expenses

5.0

6.5

15.0

8.0

0.5

26.5

3.4

Security losses associated with tax reform (1)

-

-

-

10.0

-

-

-

Total pre-tax adjustments

5.0

6.5

15.0

18.0

0.5

26.5

3.4

Tax effect (2)

(1.1)

(1.4)

(3.1)

(13.2)

(0.2)

(5.6)

(0.8)

Total adjustments, net of tax

3.9

5.1

11.9

4.8

0.3

20.9

2.6

Operating earnings

$ 135.5

$ 134.8

$ 123.0

$ 134.2

$ 113.8

$ 393.4

$ 327.2

Diluted EPS, as reported

$ 0.33

$ 0.33

$ 0.30

$ 0.35

$ 0.33

$ 0.96

$ 0.94

Adjustments to arrive at operating EPS:

Merger-related expenses

0.01

0.01

0.03

0.01

-

0.05

0.01

Security losses associated with tax reform

-

-

-

0.02

-

-

-

Tax benefit associated with tax reform

-

-

-

(0.02)

-

-

-

Total adjustments per common share

0.01

0.01

0.03

0.01

-

0.05

0.01

Operating EPS

$ 0.34

$ 0.34

$ 0.33

$ 0.36

$ 0.33

$ 1.01

$ 0.95

Average total assets

$ 51,524

$ 51,088

$ 47,800

$ 47,721

$ 44,245

$ 50,151

$ 44,123

Operating return on

average assets (annualized)

1.05%

1.06%

1.03%

1.12%

1.03%

1.05%

0.99%

(1) Security losses incurred as a tax planning strategy in response to a tax reform-related benefit are considered non-operating.

(2) Includes a $9.2 million benefit recognized in connection with tax reform for the three months ended December 31, 2018.

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)

2019

2019

2019

2018

2018

2019

2018

Operating earnings

$ 135.5

$ 134.8

$ 123.0

$ 134.2

$ 113.8

$ 393.4

$ 327.2

Average stockholders' equity

$ 7,079

$ 6,978

$ 6,562

$ 6,515

$ 5,937

$ 6,875

$ 5,876

Less: Average preferred stock

244

244

244

244

244

244

244

Average common equity

6,835

6,734

6,318

6,271

5,693

6,631

5,632

Less: Average goodwill and average other

acquisition-related intangible assets

3,069

3,043

2,900

2,807

2,572

3,005

2,561

Average tangible common equity

$ 3,766

$ 3,691

$ 3,418

$ 3,464

$ 3,121

$ 3,626

$ 3,071

Operating return on average tangible

common equity (annualized)

14.4%

14.6%

14.4%

15.5%

14.6%

14.5%

14.2%

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)

2019

2019

2019

2018

2018

2019

2018

Common dividends paid

$ 69.9

$ 69.8

$ 65.2

$ 65.1

$ 60.0

$ 204.9

$ 178.7

Operating earnings

$ 135.5

$ 134.8

$ 123.0

$ 134.2

$ 113.8

$ 393.4

$ 327.2

Operating common dividend payout ratio

51.6%

51.8%

53.0%

48.5%

52.7%

52.1%

54.6%

TANGIBLE COMMON EQUITY RATIO

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(dollars in millions)

2019

2019

2019

2018

2018

Total stockholders' equity

$ 7,131

$ 7,046

$ 6,621

$ 6,534

$ 5,959

Less: Preferred stock

244

244

244

244

244

Common equity

6,887

6,802

6,377

6,290

5,715

Less: Goodwill and other

acquisition-related intangible assets

3,065

3,073

2,896

2,866

2,569

Tangible common equity

$ 3,822

$ 3,730

$ 3,481

$ 3,424

$ 3,146

Total assets

$ 52,072

$ 51,622

$ 48,092

$ 47,877

$ 44,133

Less: Goodwill and other

acquisition-related intangible assets

3,065

3,073

2,896

2,866

2,569

Tangible assets

$ 49,007

$ 48,549

$ 45,196

$ 45,011

$ 41,564