People's United Financial Reports Fourth Quarter Operating Earnings of $0.19 Per Share; Net Income of $0.18 Per Share

 People's United Financial Reports Fourth Quarter Operating Earnings of $0.19
                   Per Share; Net Income of $0.18 Per Share

PR Newswire

BRIDGEPORT, Conn., Jan. 17, 2013

BRIDGEPORT, Conn., Jan. 17, 2013 /PRNewswire/ --People's United Financial,
Inc. (NASDAQ: PBCT) today reported net income of $61.2 million, or $0.18 per
share, for the fourth quarter of 2012, compared to $41.4 million, or $0.12 per
share, for the fourth quarter of 2011, and $62.2 million, or $0.18 per share,
for the third quarter of 2012. Operating earnings were $63.2 million, or
$0.19 per share, for the fourth quarter of 2012, compared to $57.1 million, or
$0.17 per share, for the fourth quarter of 2011, and $64.4 million, or $0.19
per share, for the third quarter of 2012.

For the year ended December 31, 2012, net income totaled $245.3 million, or
$0.72 per share, compared to $192.4 million, or $0.55 per share, for 2011.
Operating earnings were $253.9 million, or $0.75 per share, for 2012, compared
to $230.7 million, or $0.66 per share, for 2011.

The Company's Board of Directors declared a $0.16 per share quarterly
dividend, payable February 15, 2013 to shareholders of record on February 1,
2013. Based on the closing stock price on January 16, 2013, the dividend
yield on People's United Financial common stock is 5.1 percent.

During the fourth quarter of 2012 the Company repurchased 4.7 million shares
of People's United Financial common stock at a total cost of $56 million and,
in 2012, the Company repurchased 18.2 million shares of common stock at a
total cost of $220 million. Under the new share repurchase authorization
announced in November 2012, 33.4 million shares of common stock remain
available for repurchase.

"Our performance throughout 2012 continues to build on the execution of our
primary objectives – optimizing existing businesses and efficiently deploying
capital," stated Jack Barnes, President and Chief Executive Officer. "Our
financial results in 2012 reflect stable operating metrics in a challenging
economic environment, supported by solid loan and deposit growth, strength in
our fee income businesses and meaningful cost control."

Barnes continued, "We are encouraged by continued strong loan and deposit
growth within our legacy franchise and as a result of the strategic revenue
initiatives undertaken during the past year. In particular, mortgage
warehouse lending, asset-based lending, New York commercial real estate and
equipment finance, contributed to total loan growth of $1.4 billion during
2012. The $935 million increase in total deposits in 2012 is confirmation of
our dedication to superior customer service and a full-range of products as
well as continued emphasis on leveraging our brand throughout the franchise,
including targeted in-store branch acquisitions and an expanded presence in
the Boston and New York City MSAs."

Barnes concluded, "We continue to demonstrate our ability to prudently and
effectively deploy capital through organic loan and deposit growth, a
consistent dividend policy, share repurchases and a thoughtful acquisition
strategy."

"On an operating basis, earnings were $63 million, or 19 cents per share, this
quarter," stated Kirk W. Walters, Senior Executive Vice President and Chief
Financial Officer. "The Company's performance in the fourth quarter reflects
our continued focus on operating leverage through increased fee-based income
and ongoing expense control to mitigate the negative impact of this prolonged
low interest rate environment."

Walters continued, "The net interest margin this quarter primarily reflects
the impact of significant loan originations, continued run-off of the acquired
loan portfolio and an increase in the investment portfolio. Non-interest
income reflects ongoing improvement in most of our fee-based businesses as
well as higher loan prepayment fees and gains on sales of residential mortgage
loans. Regarding expenses, we are pleased with the steady progress as
evidenced by the continued downward trend in operating non-interest expense."

Walters concluded, "We certainly are pleased with the continued improvement in
asset quality. Our loan charge-off ratio throughout 2012 represented less
than one-half of our peers', which is a reflection of the Company's
historically strong underwriting standards, the economic strength of the
geography in which we operate and the resilience of our customers. Of note,
non-performing loans in the acquired portfolio have declined $178 million, or
50 percent, since December 31, 2010."

For the originated loan portfolio, non-performing loans equaled 1.30 percent
of loans at December 31, 2012, compared to 1.45 percent at September 30, 2012
and 1.75 percent at December 31, 2011. Non-performing assets (excluding
acquired non-performing loans) equaled 1.48 percent of originated loans, REO
and repossessed assets at December 31, 2012, compared to 1.59 percent at
September 30, 2012 and 2.00 percent at December 31, 2011. Net loan
charge-offs as a percentage of average loans on an annualized basis were 0.19
percent in the fourth quarter of 2012 compared to 0.18 percent in the third
quarter.

Non-performing loans in the acquired portfolio, which represent the
contractual balances of loans acquired that meet our definition of
non-performing but are not, under the accounting model for acquired loans,
subject to classification as non-accrual in the same manner as originated
loans, totaled $181.6 million at December 31, 2012, compared to $202.0 million
at September 30, 2012 and $249.0 million at December 31, 2011.

Operating return on average assets was 0.87 percent for the fourth quarter of
2012, compared to 0.84 percent for the fourth quarter of 2011 and 0.91 percent
for the third quarter of 2012. Operating return on average tangible
stockholders' equity was 8.6 percent for the fourth quarter of 2012, compared
to 7.2 percent for the fourth quarter of 2011 and 8.6 percent for the third
quarter of 2012.

At December 31, 2012, People's United Financial's tier 1 common and total
risk-based capital ratios were 12.7 percent and 14.7 percent, respectively,
and the tangible equity ratio stood at 10.2 percent. People's United Bank's
tier 1 risk-based capital and total risk-based capital ratios were 12.2
percent and 13.1 percent, respectively, at December 31, 2012.

People's United Financial, a diversified financial services company with $30
billion in assets, provides commercial and retail banking, as well as wealth
management services through a network of 419 branches in Connecticut, New
York, Massachusetts, Vermont, New Hampshire and Maine. Through its
subsidiaries, People's United Financial provides equipment financing,
brokerage and insurance services. Assets under administration and those under
full discretionary management, neither of which are reported as assets of
People's United Financial, totaled $11.4 billion and $4.5 billion,
respectively, at December 31, 2012.

Conference Call
On January 17, 2013, 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.

4Q 2012 Financial Highlights

Summary

  oNet income was $61.2 million, or $0.18 per share.

       oOperating earnings were $63.2 million, or $0.19 per share.

  oNet interest income totaled $225.1 million compared to $234.8 million in
    3Q12.

       oInterest income on acquired loans decreased $6.9 million from 3Q12 to
         $41.8 million.
       oCost recovery income on acquired loans, representing cash receipts in
         excess of carrying amount, totaled $4.1 million in 3Q12.

  oOperating net interest margin decreased 19 basis points from 3Q12 to
    3.63%.

       oThe effects of new loan volume at lower rates and lower interest
         income on acquired loans reduced the margin by 7 and 5 basis points,
         respectively.
       oAn increase in investment balances reduced the margin by 4 basis
         points.
       oThe run-off of fair value amortization on acquired deposits and the
         issuance of senior notes during the quarter each reduced the margin
         by 2 basis points.
       oLower deposit rates and improved mix benefited the margin by 3 basis
         points.

  oProvision for loan losses totaled $12.0 million.

       oNet loan charge-offs totaled $10.0 million, of which $5.2 million
         related to loans with specific reserves established in prior periods.
       oReflects a $7.2 million increase in the allowance for loan losses due
         to loan growth.

  oNon-interest income was $84.3 million in 4Q12 compared to $81.4 million in
    3Q12.

       oLoan prepayment fees increased $2.7 million from 3Q12.
       oNet gains on sales of residential mortgage loans increased $2.5
         million from 3Q12.
       oInsurance revenue decreased $2.8 million from 3Q12, primarily
         reflecting the seasonal nature of insurance renewals.

  oNon-interest expense totaled $207.4 million in 4Q12 compared to $208.9
    million in 3Q12.

       oOperating non-interest expense was $204.5 million in 4Q12 compared to
         $205.7 million in 3Q12.
       oCompensation and benefits expense decreased $9.3 million from 3Q12,
         primarily reflecting lower incentive costs, including the benefit
         associated with the final vesting of stock awards granted in 2007 in
         connection with the Company's second step conversion.
       oReal estate owned expenses declined $2.4 million from 3Q12.
       oEfficiency ratio in 4Q12 increased to 63.1% from 61.4% in 3Q12,
         primarily reflecting the decrease in interest income on acquired
         loans.

  oEffective income tax rate was 32.0% for 4Q12 and 32.4% for 2012.

Commercial Banking

  oCommercial banking loans, excluding acquired loans, increased $1.1 billion
    from September 30, 2012.
  oAverage commercial banking loans totaled $15.1 billion in 4Q12, an
    increase of $436 million, or 12% annualized, from 3Q12.
  oThe ratio of originated non-performing commercial banking loans to
    originated commercial banking loans was 1.20% at December 31, 2012
    compared to 1.49% at September 30, 2012.

       oNon-performing commercial banking assets, excluding acquired
         non-performing loans, totaled $186.1 million at December 31, 2012
         compared to $211.3 million at September 30, 2012.

  oNet loan charge-offs totaled $6.2 million, or 0.16% annualized, of average
    commercial banking loans in 4Q12, compared to $7.2 million, or 0.20%
    annualized, in 3Q12.
  oFor the originated commercial banking portfolio, the allowance for loan
    losses as a percentage of loans was 1.13% at December 31, 2012 compared to
    1.22% at September 30, 2012.
  oThe commercial banking originated allowance for loan losses represented
    95% of originated non-performing commercial banking loans at December 31,
    2012 compared to 82% at September 30, 2012.
  oCommercial deposits totaled $5.8 billion at December 31, 2012 compared to
    $5.6 billion at September 30, 2012.

Retail Banking

  oResidential mortgage loans, excluding acquired loans, increased $22
    million from September 30, 2012.
  oAverage residential mortgage loans totaled $3.9 billion in 4Q12, an
    increase of $24 million, or 2% annualized, from 3Q12.
  oThe ratio of originated non-performing residential mortgage loans to
    originated residential mortgage loans was 1.84% at December 31, 2012
    compared to 1.73% at September 30, 2012.
  oNet loan charge-offs totaled $1.7 million, or 0.18% annualized, of average
    residential mortgage loans in 4Q12, compared to $1.3 million, or 0.13%
    annualized, in 3Q12.
  oHome equity loans, excluding acquired loans, increased $6 million from
    September 30, 2012.
  oAverage home equity loans totaled $2.0 billion in 4Q12, unchanged from
    3Q12.
  oThe ratio of originated non-performing home equity loans to originated
    home equity loans was 1.07% at December 31, 2012 compared to 0.74% at
    September 30, 2012.
  oNet loan charge-offs totaled $1.7 million, or 0.32% annualized, of average
    home equity loans in 4Q12, compared to $0.6 million, or 0.13% annualized,
    in 3Q12.
  oRetail deposits totaled $16.0 billion at December 31, 2012 compared to
    $15.8 billion at September 30, 2012.

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,
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) residential mortgage and secondary market activity;
(7) changes in accounting and regulatory guidance applicable to banks; (8)
price levels and conditions in the public securities markets generally; (9)
competition and its effect on pricing, spending, third-party relationships and
revenues; (10) the successful integration of acquisitions; and (11) 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
                             Dec. 31,  Sept. 30, June 30,  March 31, Dec. 31,
(dollars in millions, except 2012      2012      2012 (1)  2012 (1)  2011 (1)
per share data)
Earnings Data:
 Net interest income        $     $     $     $     $    
                             225.1     234.8     235.6     233.2     239.6
 Provision for loan losses  12.0      15.1      10.6      11.5      20.7
 Non-interest income        84.3      81.4      75.7      72.4      71.7
 Non-interest expense (2)   207.4     208.9     205.7     208.6     230.2
 Operating non-interest     204.5     205.7     202.1     205.6     207.2
expense (3)
 Income before income tax   90.0      92.2      95.0      85.5      60.4
expense
 Net income                 61.2      62.2      64.6      57.3      41.4
 Operating earnings (3)     63.2      64.4      67.0      59.3      57.1
Selected Statistical Data:
 Net interest margin (4)    3.63%     3.89%     3.96%     3.97%     4.12%
 Operating net interest     3.63      3.82      3.88      3.97      4.03
margin (3), (4)
 Return on average assets   0.85      0.88      0.93      0.83      0.61
(4)
 Operating return on        0.87      0.91      0.97      0.86      0.84
average assets (3), (4)
 Return on average tangible 0.91      0.95      1.01      0.91      0.66
assets (4)
 Return on average          4.8       4.8       5.0       4.4       3.1
stockholders' equity (4)
 Return on average tangible 8.3       8.3       8.5       7.5       5.2
stockholders' equity (4)
 Operating return on
average tangible
 stockholders' equity     8.6       8.6       8.9       7.8       7.2
(3), (4)
 Efficiency ratio (3)       63.1      61.4      61.5      63.6      62.3
Common Share Data:
 Basic and diluted earnings $     $     $     $     $    
per share                     0.18     0.18     0.19     0.17     0.12
 Operating earnings per     0.19      0.19      0.20      0.18      0.17
share (3)
 Dividends paid per share   0.1600    0.1600    0.1600    0.1575    0.1575
 Dividend payout ratio      87.4%     87.3%     85.4%     95.9%     132.6%
 Operating dividend payout  84.7      84.3      82.2      92.6      96.0
ratio (3)
 Book value per share (end  $     $     $     $     $    
of period)                   15.21     15.20     15.09     15.00     14.96
 Tangible book value per    8.71      8.77      8.72      8.71      8.72
share (end of period) (3)
 Stock price:
 High                     12.50     12.55     13.50     13.79     13.07
 Low                      11.36     11.20     11.25     12.20     10.91
 Close (end of period)    12.09     12.14     11.61     13.23     12.85
 Common shares (end of      331.27    335.95    340.33    344.73    348.68
period) (in millions)
 Weighted average diluted   331.39    336.48    340.67    344.97    346.68
common shares (in millions)
(1) (A) As previously disclosed, reported amounts for the three months ended
June 30, 2012, March 31, 2012 and Dec. 31, 2011
 were revised to reflect a reduction in net interest income,
which, after taxes, reduced net income by $0.2 million,
 $1.3 million and $1.6 million, respectively. There were no
changes to basic and diluted earnings per share in any
 of these periods. Certain statistical data and other per common
share data were revised accordingly.
(2) Includes a total of $2.9 million, $3.2 million, $3.6 million, $3.0 million
and $23.0 million of merger-related expenses
 and one-time charges for the three months ended Dec. 31, 2012, Sept. 30,
2012, June 30, 2012, March 31, 2012 and
 Dec. 31, 2011,
respectively.
(3) See Non-GAAP financial measures
and reconciliation to GAAP.
(4) Annualized.
People's United Financial,
Inc.
FINANCIAL HIGHLIGHTS -
Continued
                             Twelve Months Ended
                             December 31,
(dollars in millions, except 2012      2011 (1)
per share data)
Earnings Data:
 Net interest income        $     $    
                             928.7     913.4
 Provision for loan losses  49.2      63.7
 Non-interest income        313.8     307.6
 Non-interest expense (2)   830.6     871.9
 Operating non-interest     817.9     815.1
expense (3)
 Income before income tax   362.7     285.4
expense
 Net income                 245.3     192.4
 Operating earnings (3)     253.9     230.7
Selected Statistical Data:
 Net interest margin        3.86%     4.10%
 Operating net interest     3.82      4.03
margin (3)
 Return on average assets   0.87      0.74
 Operating return on        0.90      0.89
average assets (3)
 Return on average tangible 0.95      0.80
assets
 Return on average          4.7       3.6
stockholders' equity
 Return on average tangible 8.2       6.0
stockholders' equity
 Operating return on
average tangible
 stockholders' equity (3) 8.5       7.2
 Efficiency ratio (3)       62.4      64.0
Common Share Data:
 Basic and diluted earnings $     $    
per share                     0.72     0.55
 Operating earnings per     0.75      0.66
share (3)
 Dividends paid per share   0.6375    0.6275
 Dividend payout ratio      88.8%     114.9%
 Operating dividend payout  85.8      95.8
ratio (3)
 Book value per share (end  $     $    
of period)                   15.21     14.96
 Tangible book value per    8.71      8.72
share (end of period) (3)
 Stock price:
 High                     13.79     14.49
 Low                      11.20     10.50
 Close (end of period)    12.09     12.85
 Common shares (end of      331.27    348.68
period) (in millions)
 Weighted average diluted   338.35    348.74
common shares (in millions)
(1) (B) Previously reported amounts for the twelve months
ended December 31, 2011 have been
 revised to reflect a reduction in net interest
income, which, after taxes, reduced net income
 by $6.4 million and basic and diluted earnings per
share by $0.02. Certain statistical data and
 other per common share data have
been revised accordingly.
(2) Includes a total of $12.7 million and $56.8 million of
merger-related expenses and one-time
 charges for the twelve months ended
December 30, 2012 and 2011, respectively.
(3) See Non-GAAP financial measures
and reconciliation to GAAP.
People's United Financial,
Inc.
FINANCIAL HIGHLIGHTS -
Continued
                             As of and for the Three Months Ended
                             Dec. 31,  Sept. 30, June 30,  March 31, Dec. 31,
(dollars in millions)        2012      2012      2012 (1)  2012 (1)  2011 (1)
Financial Condition Data:
 General:
 Total assets             $      $      $      $      $   
                             30,324    28,576    28,137    27,791    27,553
 Loans                   21,737    21,040    20,588    20,472    20,385
 Securities               4,669     3,787     3,702     2,895     2,931
 Short-term investments   131       64        73        767       411
(2)
 Allowance for loan       188       186       180       183       183
losses
 Goodwill and other
acquisition-related          2,154     2,160     2,166     2,169     2,174
intangible assets
 Deposits                 21,751    21,363    21,458    21,268    20,816
 Borrowings               2,386     1,524     960       811       857
 Notes and debentures     659       160       160       160       160
 Stockholders' equity     5,039     5,107     5,135     5,170     5,215
 Non-performing assets    290       294       295       316       337
(3)
 Net loan charge-offs     10.0      9.4       13.5      11.2      14.8
 Average Balances:
 Loans                    $      $      $      $      $   
                             21,183    20,727    20,488    20,407    20,217
 Securities               3,867     3,608     2,964     2,751     2,411
 Short-term investments   128       108       562       536       854
(2)
 Loans held for sale      28        31        26        39        60
 Total earning assets     25,206    24,474    24,040    23,733    23,542
 Total assets             28,991    28,234    27,753    27,463    27,285
 Deposits                 21,557    21,372    21,190    20,843    20,597
 Total funding            23,487    22,709    22,184    21,862    21,653
liabilities
 Stockholders' equity     5,107     5,161     5,188     5,217     5,302
 Ratios:
 Net loan charge-offs to  0.19%     0.18%     0.26%     0.22%     0.29%
average loans (annualized)
 Non-performing assets to
originated loans,
 real estate owned and  1.48      1.59      1.67      1.85      2.00
repossessed assets (3)
 Originated allowance for
loan losses to:
 Originated loans (3)   0.91      0.95      1.00      1.03      1.05
 Originated             70.3      66.0      65.6      61.5      59.7
non-performing loans (3)
 Average stockholders'
equity to average total      17.6      18.3      18.7      19.0      19.4
assets
 Stockholders' equity to  16.6      17.9      18.3      18.6      18.9
total assets
 Tangible stockholders'
equity to tangible assets    10.2      11.2      11.4      11.7      12.0
(4)
 Total risk-based capital 14.7      15.6      15.6      16.0      16.2
(5)
(1) (C) As previously disclosed, reported amounts as of June 30, 2012, March
31, 2012 and Dec. 31, 2011 were revised
 to reflect reductions in (i) loans of $18 million, $18 million and $15
million, respectively, and (ii) stockholders' equity of
 $12million, $11 million and $10million, respectively. Certain
statistical data was revised accordingly.
(2) Includes securities purchased
under agreements to resell.
(3) Excludes acquired loans.
(4) See Non-GAAP financial measures
and reconciliation to GAAP.
(5) Consolidated.



People's United Financial,
Inc.
CONSOLIDATED STATEMENTS OF
CONDITION
                           Dec. 31,    Sept. 30,   Dec. 31,
(in millions)              2012        2012        2011 (1)
Assets
Cash and due from banks    $      $      $     
                           470.0       358.3       370.2
Short-term investments     131.4       63.7        410.7
 Total cash and cash    601.4       422.0       780.9
equivalents
Securities:
 Trading account          6.5         6.3         71.8
securities, at fair value
 Securities available for 4,532.3     3,651.0     2,725.5
sale, at fair value
 Securities held to
maturity, at amortized     56.2        56.2        56.4
cost
 Federal Home Loan Bank   73.7        73.7        77.7
stock, at cost
 Total securities       4,668.7     3,787.2     2,931.4
Loans held for sale        77.0        60.0        101.9
Loans:
 Commercial               8,400.0     7,951.7     7,366.8
 Commercial real estate   7,294.2     7,032.8     7,172.2
 Residential mortgage     3,886.1     3,891.3     3,628.4
 Consumer                 2,156.3     2,164.2     2,217.4
 Total loans            21,736.6    21,040.0    20,384.8
 Less allowance for loan  (188.0)     (186.0)     (182.9)
losses
 Total loans, net       21,548.6    20,854.0    20,201.9
Goodwill and other
acquisition-related        2,153.5     2,160.3     2,174.2
intangible assets
Premises and equipment     330.4       334.7       339.6
Bank-owned life insurance  336.5       335.5       332.7
Other assets               608.3       622.3       690.1
 Total assets           $        $        $   
                           30,324.4    28,576.0    27,552.7
Liabilities
Deposits:
 Non-interest-bearing     $       $       $    
                           5,084.3     4,746.9     4,506.2
 Savings,
interest-bearing checking  11,959.8    11,729.0    10,970.4
and money market
 Time                     4,706.4     4,886.7     5,339.2
 Total deposits         21,750.5    21,362.6    20,815.8
Borrowings:
 Federal Home Loan Bank   1,178.3     629.3       332.4
advances
 Retail repurchase        588.2       479.0       497.2
agreements
 Federal funds purchased  619.0       415.0       -
 Other borrowings         1.0         1.0         27.1
 Total borrowings       2,386.5     1,524.3     856.7
Notes and debentures       659.0       160.4       159.6
Other liabilities         489.6       421.3       505.2
 Total liabilities      25,285.6    23,468.6    22,337.3
Stockholders' Equity
Common stock               3.9         3.9         3.9
Additional paid-in         5,261.3     5,263.9     5,247.0
capital
Retained earnings          756.2       750.1       734.5
Treasury stock, at cost    (712.2)     (656.2)     (493.5)
Accumulated other          (96.9)      (79.0)      (95.8)
comprehensive loss
Unallocated common stock
of Employee Stock          (173.5)     (175.3)     (180.7)
Ownership Plan, at cost
 Total stockholders'    5,038.8     5,107.4     5,215.4
equity
 Total liabilities and  $        $        $   
stockholders' equity       30,324.4    28,576.0    27,552.7
(1) See Financial
Highlights footnote 1C.
People's United Financial,
Inc.
CONSOLIDATED STATEMENTS OF
INCOME
                           Three Months Ended
                           Dec. 31,    Sept. 30,   June 30,    March   Dec.
                                                               31,     31,
(in millions, except per   2012        2012        2012 (1)    2012    2011
share data)                                                    (1)     (1)
Interest and dividend
income:
                           $      $      $      $    $   
 Commercial                90.7       91.3       91.1             
                                                               92.8    94.4
 Commercial real estate   86.0        91.3        96.4        91.7    100.3
 Residential mortgage     34.6        37.1        35.8        36.2    35.6
 Consumer                 19.5        19.8        20.0        20.7    21.2
 Total interest on      230.8       239.5       243.3       241.4   251.5
loans
 Securities               20.7        20.3        18.3        18.0    17.3
 Loans held for sale      0.4         0.5         0.4         0.5     0.7
 Short-term investments   0.1         -           0.4         0.3     0.5
 Total interest and     252.0       260.3       262.4       260.2   270.0
dividend income
Interest expense:
 Deposits                21.9        22.1        23.6        23.1    25.9
 Borrowings              2.0         1.8         1.6         1.7     1.7
 Notes and debentures     3.0         1.6         1.6         2.2     2.8
 Total interest expense 26.9        25.5        26.8        27.0    30.4
 Net interest income    225.1       234.8       235.6       233.2   239.6
Provision for loan losses 12.0        15.1        10.6        11.5    20.7
 Net interest income
after provision for loan   213.1       219.7       225.0       221.7   218.9
losses
Non-interest income:
 Bank service charges     31.4        33.0        32.5        30.3    31.6
 Investment management    8.9         8.7         8.7         8.6     8.3
fees
 Insurance revenue        6.7         9.5         7.2         8.4     7.2
 Brokerage commissions    2.9         2.8         3.4         3.1     2.6
 Operating lease income   8.5         8.3         7.7         6.7     6.3
 Net gains on sales of    6.1         3.6         2.8         3.6     2.1
residential mortgage loans
 Net gains (losses) on    0.3         -           0.7         -       (0.4)
sales of acquired loans
 Bank-owned life          1.1         1.3         1.2         1.8     1.7
insurance
 Merchant services        1.3         1.2         1.3         1.1     1.1
income, net
 Other non-interest       17.1        13.0        10.2        8.8     11.2
income
 Total non-interest     84.3        81.4        75.7        72.4    71.7
income
Non-interest expense:
 Compensation and         97.4        106.7       104.5       110.3   111.0
benefits
 Occupancy and equipment 37.9        36.5        34.1        33.4    34.4
 Professional and outside 16.8        15.8        17.5        15.3    18.7
service fees
 Amortization of leased   7.5         6.8         6.4         5.6     5.3
equipment
 Amortization of other
acquisition-related        6.7         6.7         6.8         6.6     6.9
intangible assets
 Merger-related expenses  -           -           -           -       13.3
 Other non-interest       41.1        36.4        36.4        37.4    40.6
expense
 Total non-interest     207.4       208.9       205.7       208.6   230.2
expense (2)
 Income before income   90.0        92.2        95.0        85.5    60.4
tax expense
Income tax expense        28.8        30.0        30.4        28.2    19.0
                           $      $      $      $    $   
 Net income              61.2       62.2       64.6             
                                                               57.3    41.4
Basic and diluted earnings $      $      $      $    $   
per common share            0.18       0.18       0.19             
                                                               0.17    0.12
(1) See Financial
Highlights footnote 1A.
(2) In addition to merger-related expenses, total non-interest
expense includes $2.9 million, $3.2 million, $3.6 million,
 $3.0 million and $9.7 million of non-operating expenses
for the three months ended Dec. 31, 2012, Sept. 30, 2012,
 June 30, 2012, March 31, 2012 and Dec. 31, 2011,
respectively. See Non-GAAP financial measures and
reconciliation
 to GAAP.
People's United Financial,
Inc.
CONSOLIDATED STATEMENTS OF
INCOME
                           Twelve Months Ended
                           December 31,
(in millions, except per   2012        2011 (1)
share data)
Interest and dividend
income:
 Commercial               $      $     
                           365.9       348.6
 Commercial real estate   365.4       392.4
 Residential mortgage     143.7       129.1
 Consumer                 80.0        84.2
 Total interest on      955.0       954.3
loans
 Securities               77.3        83.4
 Loans held for sale      1.8         2.1
 Short-term investments   0.8         2.1
 Total interest and     1,034.9     1,041.9
dividend income
Interest expense:
 Deposits                90.7        107.4
 Borrowings              7.1         9.0
 Notes and debentures     8.4         12.1
 Total interest expense 106.2       128.5
 Net interest income    928.7       913.4
Provision for loan losses 49.2        63.7
 Net interest income
after provision for loan   879.5       849.7
losses
Non-interest income:
 Bank service charges     127.2       131.3
 Investment management    34.9        33.2
fees
 Insurance revenue        31.8        30.7
 Brokerage commissions    12.2        11.9
 Operating lease income   31.2        25.0
 Net gains on sales of    16.1        7.6
residential mortgage loans
 Net gains on sales of    1.0         7.5
acquired loans
 Bank-owned life          5.4         6.3
insurance
 Merchant services        4.9         4.3
income, net
 Net security gains       -           8.8
 Other non-interest       49.1        41.0
income
 Total non-interest     313.8       307.6
income
Non-interest expense:
 Compensation and         418.9       429.0
benefits
 Occupancy and equipment 141.9       133.3
 Professional and outside 65.4        70.6
service fees
 Amortization of leased   26.3        20.8
equipment
 Amortization of other
acquisition-related        26.8        25.8
intangible assets
 Merger-related expenses  -           42.9
 Other non-interest       151.3       149.5
expense
 Total non-interest     830.6       871.9
expense (2)
 Income before income   362.7       285.4
tax expense
Income tax expense        117.4       93.0
 Net income             $      $     
                           245.3       192.4
Basic and diluted earnings $      $     
per common share            0.72       0.55
(1) See Financial
Highlights footnote 1B.
(2) In addition to merger-related expenses, total
non-interest expense includes $12.7 million and
 $13.9 million of non-operating expenses for
the twelve months ended December 31, 2012 and
2011,
 respectively. See Non-GAAP
financial measures and reconciliation
to GAAP.



People's United
Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND
YIELD/RATE ANALYSIS (1)
                                   December                   September
                                   31, 2012                   30, 2012
Three months ended       Average             Yield/ Average             Yield/
(dollars in millions)    Balance   Interest  Rate   Balance   Interest  Rate
Assets:
Short-term investments   $     $     0.22%  $     $     0.17%
                         127.5       0.1          107.7        -
Securities (3)           3,866.8   22.2      2.29   3,607.7   21.5      2.38
Loans held for sale      28.2      0.4       6.40   31.4      0.5       6.05
Loans:
 Commercial (4)         8,081.5   92.7      4.59   7,737.6   93.1      4.81
 Commercial real estate 7,043.8   86.0      4.89   6,952.2   91.3      5.25
(5)
 Residential mortgage   3,898.5   34.6      3.55   3,874.6   37.1      3.83
(6)
 Consumer               2,159.3   19.5      3.61   2,163.2   19.8      3.67
 Total loans          21,183.1  232.8     4.40   20,727.6  241.3     4.66
 Total earning assets 25,205.6  $     4.05%  24,474.4  $     4.30%
                                   255.5                      263.3
Other assets             3,785.2                    3,759.9
 Total assets         $                        $  
                         28,990.8                   28,234.3
Liabilities and
stockholders' equity:
Deposits:
 Non-interest-bearing   $      $     -  %  $      $     -  %
                         4,895.7      -          4,724.6      -
 Savings,
interest-bearing
checking
 and money market     11,863.1  8.6       0.29   11,661.7  9.0       0.31
 Time                   4,798.2   13.3      1.11   4,985.9   13.1      1.05
 Total deposits       21,557.0  21.9      0.41   21,372.2  22.1      0.41
Borrowings:
 Retail repurchase      539.3     0.3       0.23   478.4     0.2       0.23
agreements
 Federal Home Loan Bank 622.8     1.4       0.91   390.7     1.3       1.31
advances
 Federal funds          465.2     0.3       0.24   295.9     0.2       0.23
purchased
 Other borrowings     1.1       -         1.53   11.1      0.1       1.03
 Total borrowings     1,628.4   2.0       0.50   1,176.1   1.8       0.60
Notes and debentures     301.4     3.0       3.89   160.3     1.6       4.07
 Total funding        23,486.8  $     0.45%  22,708.6  $     0.45%
liabilities                         26.9                      25.5
Other liabilities        397.3                      364.9
 Total liabilities    23,884.1                   23,073.5
Stockholders' equity     5,106.7                    5,160.8
 Total liabilities
and
 stockholders'      $                        $  
equity                   28,990.8                   28,234.3
Net interest                       $     3.60%            $     3.85%
income/spread (7)                  228.6                      237.8
Net interest margin                          3.63%                      3.89%
Operating net interest                       3.63%                      3.82%
margin (8)
(1) Average yields
earned and rates paid
are annualized.
(2) See Financial
Highlights footnote 1A.
(3) Average balances and yields for securities
available for sale are based on amortized cost.
(4) Includes commercial and industrial loans
and equipment financing loans.
(5) Interest income for the three months ended September 30, 2012
includes $3.3 million of cost recovery income; yield of 5.06%
 without cost
recovery income.
(6) Interest income for the three months ended September 30, 2012
includes $0.8 million of cost recovery income; yield of 3.75%
 without cost
recovery income.
(7) The fully taxable equivalent adjustment was $3.5 million,
$3.0 million and $2.6 million for the three months ended
 December 31, 2012, September 30, 2012
and December 31, 2011, respectively.
(8) See Non-GAAP financial
measures and reconciliation to
GAAP.
People's United
Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND
YIELD/RATE ANALYSIS (1)
                                   December
                                   31, 2011
                                   (2)
Three months ended       Average             Yield/
(dollars in millions)    Balance   Interest  Rate
Assets:
Short-term investments   $     $     0.25%
                         853.9       0.5
Securities (3)           2,410.9   17.9      2.97
Loans held for sale      60.3      0.7       4.61
Loans:
 Commercial (4)         7,300.8   96.4      5.28
 Commercial real estate 7,114.9   100.3     5.64
(5)
 Residential mortgage   3,571.6   35.6      3.99
(6)
 Consumer               2,230.1   21.2      3.80
 Total loans          20,217.4  253.5     5.02
 Total earning assets 23,542.5  $     4.63%
                                   272.6
Other assets             3,742.2
 Total assets         $  
                         27,284.7
Liabilities and
stockholders' equity:
Deposits:
 Non-interest-bearing   $      $     -  %
                         4,330.6      -
 Savings,
interest-bearing
checking
 and money market     10,841.4  12.4      0.46
 Time                   5,425.2   13.5      1.00
 Total deposits       20,597.2  25.9      0.50
Borrowings:
 Retail repurchase      527.4     0.4       0.33
agreements
 Federal Home Loan Bank 332.9     1.2       1.49
advances
 Federal funds          8.8       -         0.18
purchased
 Other borrowings     27.2      0.1       0.98
 Total borrowings     896.3     1.7       0.78
Notes and debentures     159.5     2.8       7.03
 Total funding        21,653.0  $     0.56%
liabilities                         30.4
Other liabilities        330.2
 Total liabilities    21,983.2
Stockholders' equity     5,301.5
 Total liabilities
and
 stockholders'      $  
equity                   27,284.7
Net interest                       $     4.07%
income/spread (7)                  242.2
Net interest margin                          4.12%
Operating net interest                       4.03%
margin (8)
(1) Average yields
earned and rates paid
are annualized.
(2) See Financial
Highlights footnote 1A.
(3) Average balances and yields for securities
available for sale are based on amortized cost.
(4) Includes commercial and industrial loans
and equipment financing loans.
(5) Interest income for the three months ended September 30, 2012
includes $3.3 million of cost recovery income; yield of 5.06%
 without cost
recovery income.
(6) Interest income for the three months ended September 30, 2012
includes $0.8 million of cost recovery income; yield of 3.75%
 without cost
recovery income.
(7) The fully taxable equivalent adjustment was $3.5 million,
$3.0 million and $2.6 million for the three months ended
 December 31, 2012, September 30, 2012
and December 31, 2011, respectively.
(8) See Non-GAAP financial
measures and reconciliation to
GAAP.
People's United
Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND
YIELD/RATE ANALYSIS
                         December 31, 2012          December 31, 2011 (1)
Twelve months ended      Average             Yield/ Average             Yield/
(dollars in millions)    Balance   Interest  Rate   Balance   Interest  Rate
Assets:
Short-term investments   $     $     0.24%  $     $     0.28%
                         332.0       0.8          743.1       2.0
Securities purchased
under agreements to      -         -         -      27.3      0.1       0.17
resell
Securities (2)           3,299.8   81.5      2.47   2,933.3   85.1      2.90
Loans held for sale      31.1      1.8       5.91   38.8      2.1       5.42
Loans:
 Commercial (3)         7,672.8   373.4     4.87   6,465.4   354.7     5.49
 Commercial real estate 7,031.5   365.4     5.20   6,971.8   392.4     5.63
(4)
 Residential mortgage   3,823.6   143.7     3.75   3,126.8   129.1     4.13
 Consumer               2,174.9   80.0      3.68   2,190.1   84.2      3.85
 Total loans          20,702.8  962.5     4.65   18,754.1  960.4     5.12
 Total earning assets 24,365.7  $      4.30%  22,496.6  $      4.67%
                                   1,046.6                    1,049.7
Other assets             3,747.2                    3,531.6
 Total assets         $                        $  
                         28,112.9                   26,028.2
Liabilities and
stockholders' equity:
Deposits:
 Non-interest-bearing   $      $     -  %  $      $     -  %
                         4,656.8      -          4,032.8      -
 Savings,
interest-bearing         11,556.8  38.7      0.33   9,970.1   51.0      0.51
checking and money
market
 Time                   5,028.2   52.0      1.04   5,276.6   56.4      1.07
 Total deposits       21,241.8  90.7      0.43   19,279.5  107.4     0.56
Borrowings:
 Retail repurchase      494.7     1.3       0.26   486.6     2.0       0.41
agreements
 Federal Home Loan Bank 419.5     5.1       1.23   456.1     6.7       1.48
advances
 Federal funds          195.3     0.5       0.24   8.6       -         0.13
purchased
 Other borrowings       16.4      0.2       1.00   28.0      0.3       0.94
 Total borrowings     1,125.9   7.1       0.63   979.3     9.0       0.92
Notes and debentures     195.5     8.4       4.28   170.4     12.1      7.08
 Total funding        22,563.2  $     0.47%  20,429.2  $     0.63%
liabilities                        106.2                      128.5
Other liabilities        381.8                      327.7
 Total liabilities    22,945.0                   20,756.9
Stockholders' equity     5,167.9                    5,271.3
 Total liabilities    $                        $  
and stockholders' equity 28,112.9                   26,028.2
Net interest                       $     3.83%            $     4.04%
income/spread (5)                  940.4                      921.2
Net interest margin                          3.86%                      4.10%
Operating net interest                       3.82%                      4.03%
margin (6)
(1) See Financial
Highlights footnote 1C.
(2) Average balances and yields for securities
available for sale are based on amortized cost.
(3) Includes commercial and industrial loans
and equipment financing loans.
(4) Interest income for the twelve months ended December 31,
2012 includes $8.0 million of cost recovery income;
 yield of 5.08%
without cost recovery
income.
(5) The fully taxable equivalent adjustment was $11.7 million and $7.8
million for the twelve months ended December 31, 2012
 and 2011,
respectively.
(6) See Non-GAAP financial
measures and reconciliation to
GAAP.



People's United Financial,
Inc.
 Loans acquired in connection with acquisitions have been recorded
at fair value based on an initial estimate of
expected cash flows, including a reduction for estimated credit
losses, and without carryover of the respective
portfolio's historical allowance for loan losses. A decrease in
expected cash flows in subsequent periods may
indicate that a loan is impaired, which would require the establishment of an
allowance for loan losses. As such,
selected asset quality metrics have been highlighted to distinguish
between the 'originated' portfolio and the
'acquired' portfolio.
NON-PERFORMING ASSETS
                           Dec. 31,  Sept. 30, June 30,    March 31, Dec. 31,
(dollars in millions)      2012      2012      2012        2012      2011
Originated non-performing
loans:
Commercial Banking:
 Commercial real estate   $     $     $       $     $    
                           84.4     88.5     90.5       97.3     106.7
 Commercial and           54.8      64.6      62.2        63.0      59.2
industrial
 Equipment financing      27.2      37.4      37.3        39.6      42.9
 Total                  166.4     190.5     190.0       199.9     208.8
Retail:
 Residential mortgage     65.0      60.6      63.7        70.0      68.9
 Home equity              21.0      14.6      13.7        15.3      15.8
 Other consumer           0.3       0.3       0.2         0.2       0.3
 Total                  86.3      75.5      77.6        85.5      85.0
 Total originated       252.7     266.0     267.6       285.4     293.8
non-performing loans (1)
REO                        28.6      19.8      19.7        21.9      26.8
Repossessed assets         8.3       8.2       7.2         9.1       16.1
 Total non-performing   $     $     $       $     $    
assets                     289.6     294.0     294.5       316.4     336.7
Acquired non-performing    $     $     $       $     $    
loans (contractual amount) 181.6     202.0     236.6       247.2     249.0
(2)
Originated non-performing
loans as a percentage
 of originated loans      1.30%     1.45%     1.52%       1.67%     1.75%
Non-performing assets as a
percentage of:
 Originated loans, REO    1.48      1.59      1.67        1.85      2.00
and repossessed assets
 Tangible stockholders'
equity and originated
 allowance for loan    9.45      9.41      9.37        9.96      10.47
losses
(1) Reported net of government guarantees totaling $9.7 million at
Dec. 31, 2012, $14.1 million at Sept. 30, 2012,
 $14.8 million at June 30, 2012, $15.6 million at March 31, 2012
and $12.1 million at Dec. 31, 2011.
(2) Represents acquired loans that meet People's United Financial's definition
of a non-performing loan but are not,
 under the accounting model for acquired loans, subject to
classification as non-accrual in the same manner as
 originated loans. Because acquired loans are initially recorded at an
amount estimated to be collectible, losses on
 such loans, when incurred, are first applied against the non-accretable
difference established in purchase accounting
 and then to any allowance for loan losses
recognized subsequent to acquisition.
People's United Financial,
Inc.
PROVISION AND ALLOWANCE FOR LOAN
LOSSES
                                               Three
                                               Months
                                               Ended
                           Dec. 31,  Sept. 30, June 30,    March 31, Dec. 31,
(dollars in millions)      2012      2012      2012        2012      2011
Allowance for loan losses
on originated loans:
 Balance at beginning of  $     $     $       $     $    
period                     175.5     175.5     175.5       175.5     177.0
 Charge-offs              (11.6)    (11.1)    (12.3)      (12.9)    (15.7)
 Recoveries               1.6       1.7       1.5         1.7       0.9
 Net loan charge-offs   (10.0)    (9.4)     (10.8)      (11.2)    (14.8)
 Provision for loan       12.0      9.4       10.8        11.2      13.3
losses
 Balance at end of      177.5     175.5     175.5       175.5     175.5
period
Allowance for loan losses
on acquired loans:
 Balance at beginning of  10.5      4.8       7.7         7.4       -
period
 Charge-offs              -         -         (2.7)       -         -
 Provision for loan       -         5.7       (0.2)       0.3       7.4
losses
 Balance at end of      10.5      10.5      4.8         7.7       7.4
period
 Total allowance for    $     $     $       $     $    
loan losses                188.0     186.0     180.3       183.2     182.9
Originated allowance for
loan losses as a
percentage of:
 Originated loans       0.91%     0.95%     1.00%       1.03%     1.05%
 Originated             70.3      66.0      65.6        61.5      59.7
non-performing loans
Commercial banking
originated allowance
 for loan losses as a
percentage of
 originated commercial    1.13      1.22      1.29        1.34      1.39
banking loans
Retail originated
allowance for loan losses
 as a percentage of       0.36      0.35      0.37        0.34      0.29
originated retail loans
NET LOAN CHARGE-OFFS
                                               Three
                                               Months
                                               Ended
                           Dec. 31,  Sept. 30, June 30,    March 31, Dec. 31,
(dollars in millions)      2012      2012      2012        2012      2011
Commercial Banking:
 Commercial real estate   $     $     $      $     $    
                            2.5     3.5    6.1         5.0     3.9
 Commercial and           2.7       2.6       3.1         1.6       3.4
industrial
 Equipment financing      1.0       1.1       1.2         0.6       4.5
 Total                  6.2       7.2       10.4        7.2       11.8
Retail:
 Residential mortgage     1.7       1.3       1.4         2.0       1.6
 Home equity              1.7       0.6       1.4         1.7       0.7
 Other consumer           0.4       0.3       0.3         0.3       0.7
 Total                  3.8       2.2       3.1         4.0       3.0
 Total                  $     $     $       $     $    
                           10.0      9.4    13.5       11.2     14.8
Net loan charge-offs to    0.19%     0.18%     0.26%       0.22%     0.29%
average loans (annualized)



People's United Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP
 In addition to evaluating People's United Financial's results of
operations in accordance with U.S. generally
accepted accounting principles ("GAAP"), management routinely supplements
their evaluation with an analysis of
certain non-GAAP financial measures, such as the efficiency and tangible
equity ratios, tangible book value per
share and operating earnings metrics. Management believes these non-GAAP
financial measures provide information
useful to investors in understanding People's United Financial's underlying
operating performance and trends, and
facilitates comparisons with the performance of other banks and thrifts.
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 equity ratio and tangible book value per share are
used to analyze the relative strength
of People's United Financial's capital position.
 The efficiency ratio, which represents an approximate measure of the cost
required by People's United Financial
to generate a dollar of revenue, is the ratio of (i)total non-interest
expense (excluding 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 FTE basis plus
total non-interest income (including the
FTE adjustment on bank-owned life insurance ("BOLI") income, and excluding
gains and losses on sales of assets
other than residential mortgage loans, and non-recurring income) (the
denominator). People's United Financial
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 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 Financial'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) merger-related expenses, including
acquisition integration costs; (ii) charges
related to executive-level management separation costs; (iii)
severance-related costs; and (iv) writedowns of banking
house assets, are generally also excluded when calculating the efficiency
ratio. Operating earnings per share is derived
by determining the per share impact of the respective adjustments to arrive
at operating earnings and adding
(subtracting) such amounts to (from) GAAP earnings per share. Operating return
on average assets is calculated by
dividing operating earnings (annualized) by average assets. Operating return
on average tangible stockholders' equity is
calculated by dividing operating earnings (annualized) by average tangible
stockholders' equity. The operating dividend
payout ratio is calculated by dividing dividends paid by operating earnings
for the respective period.
 Operating net interest margin excludes from the net interest margin those
items that management considers to
be of such a discrete nature that, by excluding such items, People's United
Financial's net interest margin can be
measured and assessed on a more consistent basis from period to period. Items
excluded from operating net
interest margin include cost recovery income on acquired loans and changes in
the accretable yield on acquired
loans stemming from periodic cash flow reassessments. Operating net interest
margin is calculated by dividing
operating net interest income (annualized) by average earning assets.
 The tangible equity ratio is the ratio of (i)tangible stockholders'
equity (total stockholders' equity less goodwill
and other acquisition-related intangibles) (the numerator) to (ii)tangible
assets (total assets less goodwill and other
acquisition-related intangibles) (the denominator). Tangible book value per
share is calculated by dividing tangible
stockholders' 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
Financial 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                      Twelve Months
                                                             Ended
                     Dec.    Sept.   June    March   Dec.    Dec. 31, Dec. 31,
                     31,     30,     30,     31,     31,
(dollars in          2012    2012    2012    2012    2011    2012     2011
millions)
Total non-interest   $    $    $    $    $    $     $   
expense              207.4  208.9  205.7  208.6  230.2  830.6   871.9
Adjustments to arrive at
operating non-interest
expense:
 Severance-related  (2.9)   (0.9)   (1.1)   (2.4)   (3.9)   (7.3)    (5.3)
costs
 Merger-related     -       -       -       -       (13.3)  -        (42.9)
expenses
 Executive-level    -       -       -       -       (1.0)   -        (3.8)
separation costs
 Writedowns of      -       -       -       -       (4.8)   -        (4.8)
banking house assets
 Acquisition        -       (2.3)   (2.5)   (0.6)   -       (5.4)    -
integration costs
 Total            (2.9)   (3.2)   (3.6)   (3.0)   (23.0)  (12.7)   (56.8)
 Operating        204.5   205.7   202.1   205.6   207.2   817.9    815.1
non-interest expense
 Amortization of
other

acquisition-related  (6.7)   (6.7)   (6.8)   (6.6)   (6.9)   (26.8)   (25.8)
intangible assets
 Other (1)          (0.6)   (2.7)   (2.1)   (2.4)   (4.0)   (7.8)    (10.3)
 Total            $    $    $    $    $    $     $   
                     197.2  196.3  193.2  196.6  196.3  783.3   779.0
Net interest income  $    $    $    $    $    $     $   
(FTE basis)          228.6  237.8  238.3  235.7  242.2  940.4   921.2
Total non-interest   84.3    81.4    75.7    72.4    71.7    313.8    307.6
income
 Total revenues     312.9   319.2   314.0   308.1   313.9   1,254.2  1,228.8
Adjustments:
 BOLI FTE           0.5     0.7     0.6     0.9     0.8     2.7      3.1
adjustment
 Net security gains -       -       -       -       -       -        (8.8)
 Net (gains) losses
on sales of acquired (0.3)   -       (0.7)   -       0.4     (1.0)    (7.5)
loans
 Other (2)          (0.7)   -       -       -       (0.1)   (0.7)    2.2
 Total            $    $    $    $    $    $      $  
                     312.4  319.9  313.9  309.0  315.0  1,255.2 1,217.8
Efficiency ratio     63.1%   61.4%   61.5%   63.6%   62.3%   62.4%    64.0%
(1) Items classified as "other" and deducted from non-interest
expense for purposes of calculating the efficiency ratio include, as
 applicable, certain franchise taxes, real estate owned
expenses, contract termination costs and non-recurring expenses.
(2) Items classified as "other" and added to (deducted from) total
revenues for purposes of calculating the efficiency ratio
 include, as applicable, asset write-offs and
gains associated with the sale of branch locations.
People's United
Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO
GAAP - continued
OPERATING EARNINGS
                                     Three                   Twelve Months
                                     Months                  Ended
                                     Ended
                     Dec.    Sept.   June    March   Dec.    Dec. 31, Dec. 31,
                     31,     30,     30,     31,     31,
(dollars in
millions, except per 2012    2012    2012    2012    2011    2012     2011
share data)
Net income, as       $    $    $    $    $    $     $   
reported              61.2  62.2  64.6  57.3  41.4 245.3   192.4
Adjustments to arrive at
operating earnings:
 Severance-related  2.9     0.9     1.1     2.4     3.9     7.3      5.3
costs
 Merger-related     -       -       -       -       13.3    -        42.9
expenses
 Executive-level    -       -       -       -       1.0     -        3.8
separation costs
 Writedowns of      -       -       -       -       4.8     -        4.8
banking house assets
 Acquisition        -       2.3     2.5     0.6     -       5.4      -
integration costs
 Total pre-tax    2.9     3.2     3.6     3.0     23.0    12.7     56.8
adjustments
Tax effect           (0.9)   (1.0)   (1.2)   (1.0)   (7.3)   (4.1)    (18.5)
 Total
adjustments, net of  2.0     2.2     2.4     2.0     15.7    8.6      38.3
tax
 Operating        $    $    $    $    $    $     $   
earnings              63.2  64.4  67.0  59.3  57.1 253.9   230.7
Earnings per share,  $    $    $    $    $    $     $   
as reported           0.18  0.18  0.19  0.17  0.12  0.72   0.55
Adjustments to arrive at
operating earnings per
share:
 Severance-related  0.01    -       -       0.01    0.01    0.02     0.01
costs
 Merger-related     -       -       -       -       0.03    -        0.08
expenses
 Executive-level    -       -       -       -       -       -        0.01
separation costs
 Writedowns of      -       -       -       -       0.01    -        0.01
banking house assets
 Acquisition        -       0.01    0.01    -       -       0.01     -
integration costs
 Total
adjustments per      0.01    0.01    0.01    0.01    0.05    0.03     0.11
share
 Operating        $    $    $    $    $    $     $   
earnings per share    0.19  0.19  0.20  0.18  0.17  0.75   0.66
(1)
Average total assets $    $    $    $    $    $     $   
                     28,991  28,234  27,753  27,463  27,285  28,113   26,028
Operating return on
 average assets     0.87%   0.91%   0.97%   0.86%   0.84%   0.90%    0.89%
(annualized)
(1) The sum of the quarterly operating earnings per share amounts
may not equal the full-year amount due to rounding and/or
changes in average
share count.
OPERATING NET INTEREST
MARGIN
                     Three Months Ended                      Twelve Months
                                                             Ended
                     Dec.    Sept.   June    March   Dec.    Dec. 31, Dec. 31,
                     31,     30,     30,     31,     31,
(dollars in          2012    2012    2012    2012    2011    2012     2011
millions)
Net interest income  $    $    $    $    $    $     $   
(FTE basis)          228.6  237.8  238.3  235.7  242.2  940.4   921.2
Adjustments to
arrive at
 operating net
interest income:
 Cost recovery      -       (4.1)   (4.7)   -       (5.0)   (8.8)    (5.0)
income
 Changes in         -       -       -       -       -       -        (11.2)
accretable yield
 Total            -       (4.1)   (4.7)   -       (5.0)   (8.8)    (16.2)
adjustments
 Operating net    $    $    $    $    $    $     $   
interest income      228.6  233.7  233.6  235.7  237.2  931.6   905.0
Net interest margin, 3.63%   3.89%   3.96%   3.97%   4.12%   3.86%    4.10%
as reported (1)
Adjustments to
arrive at
 operating net
interest margin: (1)
 Cost recovery      -       (0.07)  (0.08)  -       (0.09)  (0.04)   (0.02)
income
 Changes in         -       -       -       -       -       -        (0.05)
accretable yield
 Total            -       (0.07)  (0.08)  -       (0.09)  (0.04)   (0.07)
adjustments
 Operating net    3.63%   3.82%   3.88%   3.97%   4.03%   3.82%    4.03%
interest margin (1)
Total earning assets $    $    $    $    $    $     $   
                     25,206  24,474  24,040  23,733  23,542  24,366   22,497
(1) Annualized

People's United
Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP -
continued
OPERATING RETURN ON AVERAGE TANGIBLE
STOCKHOLDERS' EQUITY
                                         Three                   Twelve
                                         Months                  Months Ended
                                         Ended
                       Dec. 31, Sept.    June    March   Dec.    Dec.   Dec.
                                30,      30,     31,     31,     31,    31,
(dollars in millions)  2012     2012     2012    2012    2011    2012   2011
                       $     $     $    $    $    $    $  
Operating earnings                                           
                       63.2    64.4    67.0   59.3   57.1   253.9  230.7
Average stockholders'  $     $     $    $    $    $    $  
equity                                                       
                       5,107    5,161    5,188   5,217   5,302   5,168  5,271
Less: Average goodwill and
average other

acquisition-related    2,157    2,164    2,166   2,171   2,148   2,165  2,053
intangible assets
Average tangible       $     $     $    $    $    $    $  
stockholders' equity                                         
                       2,950    2,997    3,022   3,046   3,154   3,003  3,218
Operating return on
average tangible
 stockholders' equity 8.6%     8.6%     8.9%    7.8%    7.2%    8.5%   7.2%
(annualized)
OPERATING DIVIDEND PAYOUT RATIO
                                         Three                   Twelve
                                         Months                  Months Ended
                                         Ended
                       Dec. 31, Sept.    June    March   Dec.    Dec.   Dec.
                                30,      30,     31,     31,     31,    31,
(dollars in millions)  2012     2012     2012    2012    2011    2012   2011
                       $     $     $    $    $    $    $  
Dividends paid                                               
                       53.5    54.3    55.1   54.9   54.8   217.8  220.9
                       $     $     $    $    $    $    $  
Operating earnings                                           
                       63.2    64.4    67.0   59.3   57.1   253.9  230.7
Operating dividend     84.7%    84.3%    82.2%   92.6%   96.0%   85.8%  95.8%
payout ratio
TANGIBLE EQUITY RATIO
                       Dec. 31, Sept.    June    March   Dec.
                                30,      30,     31,     31,
(dollars in millions)  2012     2012     2012    2012    2011
Total stockholders'    $     $     $    $    $   
equity                                            
                       5,039    5,107    5,135   5,170   5,215
Less: Goodwill and
other

acquisition-related    2,154    2,160    2,166   2,169   2,174
intangible assets
Tangible stockholders' $     $     $    $    $   
equity                                            
                       2,885    2,947    2,969   3,001   3,041
                       $     $     $    $    $   
Total assets            30,324  28,576               
                                         28,137  27,791  27,553
Less: Goodwill and
other

acquisition-related    2,154    2,160    2,166   2,169   2,174
intangible assets
                       $     $     $    $    $   
Tangible assets         28,170  26,416               
                                         25,971  25,622  25,379
Tangible equity ratio  10.2%    11.2%    11.4%   11.7%   12.0%
TANGIBLE BOOK VALUE PER SHARE
                       Dec. 31, Sept.    June    March   Dec.
                                30,      30,     31,     31,
(in millions, except   2012     2012     2012    2012    2011
per share data)
Tangible stockholders' $     $     $    $    $   
equity                                            
                       2,885    2,947    2,969   3,001   3,041
Common shares issued   395.81   395.88   395.87  395.84  395.42
Less: Shares
classified as treasury 56.18    51.48    47.00   42.49   38.03
shares
 Unallocated   8.36     8.45     8.54    8.62    8.71
ESOP shares
Common shares          331.27   335.95   340.33  344.73  348.68
Tangible book value    $     $     $    $    $   
per share                                         
                       8.71    8.77    8.72   8.71   8.72



SOURCE People's United Financial, Inc.

Website: http://www.peoples.com
Contact: INVESTOR CONTACT: Peter Goulding, CFA, Investor Relations,
+1-203-338-6799, peter.goulding@peoples.com; MEDIA CONTACT: Valerie Carlson,
Corporate Communications, +1-203-338-2351, valerie.carlson@peoples.com
 
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