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People's United Financial Reports Second Quarter Operating Earnings And Net Income Of $0.20 Per Share

 People's United Financial Reports Second Quarter Operating Earnings And Net
                          Income Of $0.20 Per Share

PR Newswire

BRIDGEPORT, Conn., July 18, 2013

BRIDGEPORT, Conn., July 18, 2013 /PRNewswire/ --People's United Financial,
Inc. (NASDAQ: PBCT) today reported net income of $62.1 million, or $0.20 per
share, for the second quarter of 2013, compared to $64.6 million, or $0.19 per
share, for the second quarter of 2012, and $52.5 million, or $0.16 per share,
for the first quarter of 2013. Operating earnings were $62.4 million, or
$0.20 per share, for the second quarter of 2013, compared to $67.0 million, or
$0.20 per share, for the second quarter of 2012, and $57.9 million, or $0.18
per share, for the first quarter of 2013.

The Company's Board of Directors declared a $0.1625 per share quarterly
dividend, payable August 15, 2013 to shareholders of record on August 1,
2013. Based on the closing stock price on July 17, 2013, the dividend yield
on People's United Financial common stock is 4.2 percent.

During the second quarter of 2013 the Company repurchased 11.2 million shares
of People's United Financial common stock at a weighted average price of
$13.63 per share and, during the first six months of 2013, the Company
repurchased 22.4 million shares of common stock at a weighted average price of
$13.30 per share. Under the existing share repurchase authorization, 11.0
million shares of common stock remain available for repurchase.

"Our results continue to reflect the benefits from the investments we have
made in talent over the past three years that have strengthened, and will
continue to strengthen, both our robust product offerings and expanded
geographic footprint," stated Jack Barnes, President and Chief Executive
Officer. "This quarter we experienced annualized loan growth of 13 percent and
deposit growth of 4 percent. Our continued progress in loan growth, both this
quarter and over the past 11 quarters, is a tribute to both our relationship
managers and our customers. These relationships bring our brand to life every
day."

Barnes concluded, "As we expected, our net interest margin has now largely
stabilized. This should allow net interest income to increase at a pace more
closely aligned with our earning asset growth in the quarters ahead and, in
fact, net interest income this quarter increased slightly from the first
quarter. Our strong business fundamentals, ongoing ability to leverage our
brand in attractive markets, and prospects for growth continue to be the
foundations of our strength relative to others in the industry."

"On an operating basis, earnings were $62 million, or 20 cents per share, this
quarter," stated Kirk W. Walters, Senior Executive Vice President and Chief
Financial Officer. "The net interest margin reflects the impact of strong
loan originations and the benefit of one more calendar day in this quarter,
while non-interest income demonstrates the ongoing improvement in most of our
fee-based businesses. Cost control continues to remain an important area of
focus. The modest increase in operating expenses this quarter primarily
reflects the timing of certain advertising and promotion expenses."

Walters concluded, "We certainly are pleased with the continued improvement in
asset quality. Our low loan charge-off ratio 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
particular note, non-performing loans in the acquired portfolio declined $22
million, or 12 percent, from March 31, 2013."

Net loan charge-offs as a percentage of average loans on an annualized basis
were 0.19 percent in the second quarter of 2013 compared to 0.24 percent in
the first quarter of 2013. For the originated loan portfolio, non-performing
loans equaled 1.18 percent of loans at June 30, 2013, compared to 1.25 percent
at March 31, 2013 and 1.52 percent at June 30, 2012. Non-performing assets
(excluding acquired non-performing loans) equaled 1.33 percent of originated
loans, REO and repossessed assets at June 30, 2013, compared to 1.42 percent
at March 31, 2013 and 1.67 percent at June 30, 2012.

Operating return on average assets was 0.81 percent for the second quarter of
2013, compared to 0.77 percent for the first quarter of 2013 and 0.97 percent
for the second quarter of 2012. Operating return on average tangible
stockholders' equity was 9.3 percent for the second quarter of 2013, compared
to 8.1 percent for the first quarter of 2013 and 8.9 percent for the second
quarter of 2012.

At June 30, 2013, People's United Financial's tier 1 common and total
risk-based capital ratios were 10.8 percent and 12.8 percent, respectively,
and the tangible equity ratio stood at 8.7 percent. People's United Bank's
tier 1 and total risk-based capital ratios were 11.9 percent and 13.2 percent,
respectively, at June 30, 2013.

People's United Financial, a diversified financial services company with $31
billion in assets, provides commercial and retail banking, as well as wealth
management services through a network of 418 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 managed and administered, which are
not reported as assets of People's United Financial, totaled $15.5 billion at
June 30, 2013.

2Q 2013 Financial Highlights

Summary

  oNet income was $62.1 million, or $0.20 per share.

       oOperating earnings were $62.4 million, or $0.20 per share.

  oNet interest income totaled $220.9 million in 2Q13 compared to $219.3
    million in 1Q13.

       oInterest income on acquired loans decreased $3.1 million from 1Q13 to
         $34.0 million.

  oNet interest margin decreased 5 basis points from 1Q13 to 3.33%.

       oThe effect of one more calendar day in 2Q13 benefited the margin by 2
         basis points.
       oThe effects of new loan volume at lower rates, and loan repricing and
         amortization reduced the margin by 5 and 1 basis points,
         respectively.

  oProvision for loan losses totaled $9.2 million.

       oNet loan charge-offs totaled $10.8 million, of which $4.3 million
         related to loans with specific reserves established in prior periods.
       oReflects a $3.6 million increase in the originated allowance for loan
         losses due to loan growth and a $0.9 million allowance reversal
         related to acquired loans sold during the period.

  oNon-interest income was $86.1 million in 2Q13 compared to $82.9 million in
    1Q13.

       oBank service charges increased $2.0 million from 1Q13, in part due to
         the seasonal nature of certain fee categories.
       oInvestment management fees increased $0.4 million from 1Q13.
       oInsurance revenue decreased $1.2 million from 1Q13, primarily
         reflecting the seasonal nature of insurance renewals.
       oNet gains on sales of acquired loans totaled $5.8 million in 2Q13.
       oAssets under administration and those under full discretionary
         management, neither of which are reported as assets of People's
         United Financial, totaled $10.7 billion and $4.8 billion,
         respectively, at June 30, 2013.

  oNon-interest expense totaled $205.8 million in 2Q13 compared to $212.0
    million in 1Q13.

       oOperating non-interest expense was $205.4 million in 2Q13 compared to
         $204.0 million in 1Q13. Excluding operating lease expense and
         amortization of acquisition-related intangible assets, operating
         non-interest expense totaled $191.2 million in 2Q13 compared to
         $190.0 million in 1Q13.
       oCompensation and benefits expense decreased $3.8 million from 1Q13,
         primarily reflecting lower payroll-related costs in 2Q13.
       oCompared to 1Q13, real estate owned expenses increased $2.0 million,
         advertising and promotion expenses increased $1.9 million and
         professional and outside service fees increased $1.0 million.
       oEfficiency ratio in 2Q13 decreased to 62.7% from 64.1% in 1Q13,
         primarily reflecting the increase in total revenues.

  oEffective income tax rate was 32.5% for 2Q13 and 32.4% for the full year
    of 2012.

Commercial Banking

  oCommercial banking loans, excluding acquired loans, increased $747 million
    from March 31, 2013.
  oAverage commercial banking loans totaled $16.2 billion in 2Q13, an
    increase of $538 million, or 14% annualized, from 1Q13.
  oThe ratio of originated non-performing commercial banking loans to
    originated commercial banking loans was 1.10% at June 30, 2013 compared to
    1.13% at March 31, 2013.

       oNon-performing commercial banking assets, excluding acquired
         non-performing loans, totaled $183.8 million at June 30, 2013
         compared to $179.0 million at March 31, 2013.

  oNet loan charge-offs totaled $6.9 million, or 0.17% annualized, of average
    commercial banking loans in 2Q13, compared to $9.4 million, or 0.24%
    annualized, in 1Q13.

       oExcluding acquired loan charge-offs, net loan charge-offs totaled
         $6.4 million, or 0.16% annualized, in 1Q13.

  oFor the originated commercial banking portfolio, the allowance for loan
    losses as a percentage of loans was 1.05% at June 30, 2013 compared to
    1.11% at March 31, 2013.
  oThe commercial banking originated allowance for loan losses represented
    96% of originated non-performing commercial banking loans at June 30,
    2013, compared to 98% at March 31, 2013.
  oCommercial deposits totaled $5.8 billion at June 30, 2013 compared to $5.6
    billion at March 31, 2013.

Retail Banking

  oResidential mortgage loans, excluding acquired loans, increased $144
    million from March 31, 2013.
  oAverage residential mortgage loans totaled $4.0 billion in 2Q13, an
    increase of $116 million, or 12% annualized, from 1Q13.
  oThe ratio of originated non-performing residential mortgage loans to
    originated residential mortgage loans was 1.58% at June 30, 2013 compared
    to 1.84% at March 31, 2013.
  oNet loan charge-offs totaled $2.3 million, or 0.23% annualized, of average
    residential mortgage loans in 2Q13, compared to $1.9 million, or 0.19%
    annualized, in 1Q13.
  oHome equity loans, excluding acquired loans, increased $21 million from
    March 31, 2013.
  oAverage home equity loans totaled $2.0 billion in 2Q13, unchanged from
    1Q13.
  oThe ratio of originated non-performing home equity loans to originated
    home equity loans was 1.06% at June 30, 2013 compared to 1.13% at March
    31, 2013.
  oNet loan charge-offs totaled $1.4 million, or 0.28% annualized, of average
    home equity loans in 2Q13, compared to $1.5 million, or 0.30% annualized,
    in 1Q13.
  oRetail deposits totaled $16.2 billion at both June 30, 2013 and March 31,
    2013.

Conference Call
On July 18, 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.

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
                             June 30,  March 31, Dec. 31,  Sept. 30, June 30,
(dollars in millions, except 2013      2013      2012      2012      2012
per share data)
Earnings Data:
 Net interest income        $     $     $     $     $    
                             220.9     219.3     225.1     234.8     235.6
 Provision for loan losses  9.2       12.4      12.0      15.1      10.6
 Non-interest income        86.1      82.9      84.3      81.4      75.7
 Non-interest expense       205.8     212.0     207.4     208.9     205.7
 Operating non-interest     205.4     204.0     204.5     205.7     202.1
expense (1)
 Income before income tax   92.0      77.8      90.0      92.2      95.0
expense
 Net income                 62.1      52.5      61.2      62.2      64.6
 Operating earnings (1)     62.4      57.9      63.2      64.4      67.0
Selected Statistical Data:
 Net interest margin (2)    3.33%     3.38%     3.63%     3.89%     3.96%
 Operating net interest     3.33      3.38      3.63      3.82      3.88
margin (1), (2)
 Return on average assets   0.81      0.70      0.85      0.88      0.93
(2)
 Operating return on        0.81      0.77      0.87      0.91      0.97
average assets (1), (2)
 Return on average tangible 0.87      0.75      0.91      0.95      1.01
assets (2)
 Return on average          5.2       4.2       4.8       4.8       5.0
stockholders' equity (2)
 Return on average tangible 9.3       7.4       8.3       8.3       8.5
stockholders' equity (2)
 Operating return on
average tangible
 stockholders' equity     9.3       8.1       8.6       8.6       8.9
(1), (2)
 Efficiency ratio (1)       62.7      64.1      63.0      61.4      61.4
Common Share Data:
 Basic and diluted earnings $     $     $     $     $    
per share                     0.20     0.16     0.18     0.18     0.19
 Operating earnings per     0.20      0.18      0.19      0.19      0.20
share (1)
 Dividends paid per share   0.1625    0.16      0.16      0.16      0.16
 Dividend payout ratio      83.6%     100.6%    87.4%     87.3%     85.4%
 Operating dividend payout  83.2      91.2      84.8      84.3      82.2
ratio (1)
 Book value per share (end  $     $     $     $     $    
of period)                   15.11     15.24     15.21     15.20     15.09
 Tangible book value per    8.20      8.54      8.71      8.77      8.72
share (end of period) (1)
 Stock price:
 High                     15.00     13.61     12.50     12.55     13.50
 Low                      12.62     12.22     11.36     11.20     11.25
 Close (end of period)    14.90     13.42     12.09     12.14     11.61
 Common shares (end of      309.59    320.65    331.27    335.95    340.33
period) (in millions)
 Weighted average diluted   313.52    325.21    331.39    336.48    340.67
common shares (in millions)
(1) See Non-GAAP financial measures
and reconciliation to GAAP.
(2) Annualized.
People's United Financial,
Inc.
FINANCIAL HIGHLIGHTS -
Continued
                             Six Months Ended
                             June 30,
(dollars in millions, except 2013      2012
per share data)
Earnings Data:
 Net interest income        $     $    
                             440.2     468.8
 Provision for loan losses  21.6      22.1
 Non-interest income        169.0     148.1
 Non-interest expense       417.8     414.3
 Operating non-interest     409.4     407.7
expense (1)
 Income before income tax   169.8     180.5
expense
 Net income                 114.6     121.9
 Operating earnings (1)     120.3     126.3
Selected Statistical Data:
 Net interest margin (2)    3.35%     3.97%
 Operating net interest     3.35      3.93
margin (1), (2)
 Return on average assets   0.75      0.88
(2)
 Operating return on        0.79      0.91
average assets (1), (2)
 Return on average tangible 0.81      0.96
assets (2)
 Return on average          4.7       4.7
stockholders' equity (2)
 Return on average tangible 8.3       8.0
stockholders' equity (2)
 Operating return on
average tangible
 stockholders' equity     8.7       8.3
(1), (2)
 Efficiency ratio (1)       63.4      62.5
Common Share Data:
 Basic and diluted earnings $     $    
per share                     0.36     0.36
 Operating earnings per     0.38      0.38
share (1)
 Dividends paid per share   0.3225    0.3175
 Dividend payout ratio      91.3%     90.3%
 Operating dividend payout  87.0      87.1
ratio (1)
 Book value per share (end  $     $    
of period)                   15.11     15.09
 Tangible book value per    8.20      8.72
share (end of period) (1)
 Stock price:
 High                     15.00     13.79
 Low                      12.22     11.25
 Close (end of period)    14.90     11.61
 Common shares (end of      309.59    340.33
period) (in millions)
 Weighted average diluted   319.33    342.82
common shares (in millions)
(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
                             June 30,  March 31, Dec. 31,  Sept. 30, June 30,
(dollars in millions)        2013      2013      2012      2012      2012
Financial Condition Data:
 General:
 Total assets             $      $      $      $      $   
                             31,345    30,598    30,324    28,576    28,137
 Loans                   22,866    22,161    21,737    21,040    20,588
 Securities               4,618     4,716     4,669     3,787     3,702
 Short-term investments   120       127       131       64        73
 Allowance for loan       186       187       188       186       180
losses
 Goodwill and other
acquisition-related          2,140     2,147     2,154     2,160     2,166
intangible assets
 Deposits                 21,982    21,792    21,751    21,363    21,458
 Borrowings               3,626     2,849     2,386     1,524     960
 Notes and debentures     639       659       659       160       160
 Stockholders' equity     4,678     4,886     5,039     5,107     5,135
 Total risk-weighted      23,498    22,918    22,764    21,682    21,841
assets (1)
 Non-performing assets    281       285       290       294       295
(2)
 Net loan charge-offs     10.8      13.1      10.0      9.4       13.5
 Average Balances:
 Loans                    $      $      $      $      $   
                             22,369    21,727    21,211    20,758    20,514
 Securities               4,557     4,548     3,867     3,608     2,964
 Short-term investments   153       146       128       108       562
 Total earning assets     27,079    26,421    25,206    24,474    24,040
 Total assets             30,799    30,178    28,991    28,234    27,753
 Deposits                 21,835    21,558    21,557    21,372    21,190
 Total funding            25,548    24,726    23,487    22,709    22,184
liabilities
 Stockholders' equity     4,825     5,005     5,107     5,161     5,188
 Ratios:
 Net loan charge-offs to  0.19%     0.24%     0.19%     0.18%     0.26%
average loans (annualized)
 Non-performing assets to
originated loans,
 real estate owned and  1.33      1.42      1.48      1.59      1.67
repossessed assets (2)
 Originated allowance for
loan losses to:
 Originated loans (2)   0.85      0.88      0.91      0.95      1.00
 Originated             71.8      70.6      70.3      66.0      65.6
non-performing loans (2)
 Average stockholders'
equity to average total      15.7      16.6      17.6      18.3      18.7
assets
 Stockholders' equity to  14.9      16.0      16.6      17.9      18.3
total assets
 Tangible stockholders'
equity to tangible assets    8.7       9.6       10.2      11.2      11.4
(3)
 Total risk-based capital 12.8      13.7      14.7      15.6      15.6
(1)
(1) Consolidated.
(2) Excludes acquired loans.
(3) See Non-GAAP financial measures
and reconciliation to GAAP.



People's United
Financial, Inc.
CONSOLIDATED STATEMENTS
OF CONDITION
                          June 30,     March 31,   Dec. 31,   June 30,
(in millions)             2013         2013        2012       2012
Assets
Cash and due from banks   $   379.6  $   320.5 $        $  
                                                   470.0      415.1
Short-term investments    119.5        127.2       131.4      72.8
 Total cash and cash   499.1        447.7       601.4      487.9
equivalents
Securities:
 Trading account         6.4          6.4         6.5        12.0
securities, at fair value
 Securities available    4,439.9      4,570.4     4,532.3    3,560.0
for sale, at fair value
 Securities held to
maturity, at amortized    56.1         56.1        56.2       56.4
cost
 Federal Home Loan Bank  115.4        83.0        73.7       73.7
stock, at cost
 Total securities      4,617.8      4,715.9     4,668.7    3,702.1
Loans held for sale       68.3         50.7        77.0       57.1
Loans:
 Commercial              8,560.8      8,469.5     8,400.0    7,590.1
 Commercial real estate  8,077.3      7,599.2     7,294.2    6,999.7
 Residential mortgage    4,084.2      3,958.8     3,886.1    3,831.9
 Consumer                2,143.9      2,133.4     2,156.3    2,166.7
 Total loans           22,866.2     22,160.9    21,736.6   20,588.4
 Less allowance for loan (185.7)      (187.3)     (188.0)    (180.3)
losses
 Total loans, net      22,680.5     21,973.6    21,548.6   20,408.1
Goodwill and other
acquisition-related       2,140.4      2,147.0     2,153.5    2,166.4
intangible assets
Premises and equipment    320.1        327.0       330.4      337.4
Bank-owned life insurance 337.2        336.3       336.5      334.6
Other assets              681.5        600.0       608.3      643.0
 Total assets          $ 31,344.9   $ 30,598.2  $ 30,324.4 $
                                                              28,136.6
Liabilities
Deposits:
 Non-interest-bearing    $  5,116.0  $  4,994.3 $         $ 
                                                   5,084.3    4,799.2
 Savings,
interest-bearing checking 12,278.6     12,210.8    11,959.8   11,617.9
and money market
 Time                    4,587.2      4,586.5     4,706.4    5,040.7
 Total deposits        21,981.8     21,791.6    21,750.5   21,457.8
Borrowings:
 Federal Home Loan Bank  2,206.4      1,407.4     1,178.3    330.3
advances
 Federal funds purchased 931.0        934.0       619.0      150.0
 Retail repurchase       487.7        506.9       588.2      452.7
agreements
 Other borrowings        1.0          1.0         1.0        26.6
 Total borrowings      3,626.1      2,849.3     2,386.5    959.6
Notes and debentures      638.9        659.3       659.0      160.1
Other liabilities        420.2        411.9       489.6      423.7
 Total liabilities     26,667.0     25,712.1    25,285.6   23,001.2
Stockholders' Equity
Common stock              3.9          3.9         3.9        3.9
Additional paid-in        5,268.8      5,265.2     5,261.3    5,258.5
capital
Retained earnings         763.1        753.6       756.2      743.2
Treasury stock, at cost   (1,009.3)    (856.4)     (712.2)    (602.9)
Accumulated other         (178.8)      (108.5)     (96.9)     (90.2)
comprehensive loss
Unallocated common stock
of Employee Stock         (169.8)      (171.7)     (173.5)    (177.1)
Ownership Plan, at cost
 Total stockholders'   4,677.9      4,886.1     5,038.8    5,135.4
equity
 Total liabilities and $ 31,344.9   $ 30,598.2  $ 30,324.4 $
stockholders' equity                                          28,136.6
People's United
Financial, Inc.
CONSOLIDATED STATEMENTS
OF INCOME
                          Three Months Ended
                          June 30,     March 31,   Dec. 31,   Sept. 30, June
                                                                        30,
(in millions, except per  2013         2013        2012       2012      2012
share data)
Interest and dividend
income:
 Commercial              $    87.2 $        $       $      $  
                                       86.7        90.7       91.3       91.1
 Commercial real estate  87.2         85.5        86.0       91.3      96.4
 Residential mortgage    34.3         34.5        34.6       37.1      35.8
 Consumer                18.7         18.8        19.5       19.8      20.0
 Total interest on     227.4        225.5       230.8      239.5     243.3
loans
 Securities              22.2         22.7        20.7       20.3      18.3
 Loans held for sale     0.4          0.4         0.4        0.5       0.4
 Short-term investments  0.1          0.1         0.1        -         0.4
 Total interest and    250.1        248.7       252.0      260.3     262.4
dividend income
Interest expense:
 Deposits               20.5         20.8        21.9       22.1      23.6
 Borrowings             2.6          2.3         2.0        1.8       1.6
 Notes and debentures    6.1          6.3         3.0        1.6       1.6
 Total interest        29.2         29.4        26.9       25.5      26.8
expense
 Net interest income   220.9        219.3       225.1      234.8     235.6
Provision for loan        9.2          12.4        12.0       15.1      10.6
losses
 Net interest income
after provision for loan  211.7        206.9       213.1      219.7     225.0
losses
Non-interest income:
 Bank service charges    32.1         30.1        31.4       33.0      32.5
 Investment management   9.4          9.0         8.9        8.7       8.7
fees
 Insurance revenue       7.1          8.3         6.7        9.5       7.2
 Brokerage commissions   3.4          3.3         2.9        2.8       3.4
 Operating lease income  8.1          8.3         8.5        8.3       7.7
 Net gains on sales of
residential mortgage      4.2          5.7         6.1        3.6       2.8
loans
 Net gains on sales of   5.8          -           0.3        -         0.7
acquired loans
 Merchant services       1.2          1.2         1.3        1.2       1.3
income, net
 Bank-owned life         1.0          0.9         1.1        1.3       1.2
insurance
 Other non-interest      13.8         16.1        17.1       13.0      10.2
income
 Total non-interest    86.1         82.9        84.3       81.4      75.7
income
Non-interest expense:
 Compensation and        104.4        108.2       97.4       106.7     104.5
benefits
 Occupancy and           36.9         37.9        37.9       36.5      34.1
equipment
 Professional and        14.9         13.9        16.8       15.8      17.5
outside service fees
 Operating lease expense 7.6          7.5         7.5        6.8       6.4
 Amortization of other
acquisition-related       6.6          6.5         6.7        6.7       6.8
intangible assets
 Other non-interest      35.4         38.0        41.1       36.4      36.4
expense
 Total non-interest    205.8        212.0       207.4      208.9     205.7
expense (1)
 Income before income  92.0         77.8        90.0       92.2      95.0
tax expense
Income tax expense       29.9         25.3        28.8       30.0      30.4
 Net income            $    62.1 $        $       $      $  
                                       52.5        61.2       62.2       64.6
Basic and diluted         $    0.20 $        $       $      $  
earnings per common share              0.16        0.18       0.18       0.19
(1) Total non-interest expense includes $0.4 million, $8.0
million, $2.9 million, $3.2 million and $3.6 million of
 non-operating expenses for the three months ended June 30, 2013,
March 31, 2013, Dec. 31, 2012, Sept. 30, 2012
 and June 30, 2012, respectively. See Non-GAAP financial
measures and reconciliation to GAAP.
People's United
Financial, Inc.
CONSOLIDATED STATEMENTS
OF INCOME
                          Six Months Ended
                          June 30,
(in millions, except per  2013         2012
share data)
Interest and dividend
income:
 Commercial              $   173.9  $   183.9
 Commercial real estate  172.7        188.1
 Residential mortgage    68.8         72.0
 Consumer                37.5         40.7
 Total interest on     452.9        484.7
loans
 Securities              44.9         36.3
 Loans held for sale     0.8          0.9
 Short-term investments  0.2          0.7
 Total interest and    498.8        522.6
dividend income
Interest expense:
 Deposits               41.3         46.7
 Borrowings             4.9          3.3
 Notes and debentures    12.4         3.8
 Total interest        58.6         53.8
expense
 Net interest income   440.2        468.8
Provision for loan        21.6         22.1
losses
 Net interest income
after provision for loan  418.6        446.7
losses
Non-interest income:
 Bank service charges    62.2         62.8
 Investment management   18.4         17.3
fees
 Insurance revenue       15.4         15.6
 Brokerage commissions   6.7          6.5
 Operating lease income  16.4         14.4
 Net gains on sales of
residential mortgage      9.9          6.4
loans
 Net gains on sales of   5.8          0.7
acquired loans
 Merchant services       2.4          2.4
income, net
 Bank-owned life         1.9          3.0
insurance
 Other non-interest      29.9         19.0
income
 Total non-interest    169.0        148.1
income
Non-interest expense:
 Compensation and        212.6        214.8
benefits
 Occupancy and           74.8         67.5
equipment
 Professional and        28.8         32.8
outside service fees
 Operating lease expense 15.1         12.0
 Amortization of other
acquisition-related       13.1         13.4
intangible assets
 Other non-interest      73.4         73.8
expense
 Total non-interest    417.8        414.3
expense (1)
 Income before income  169.8        180.5
tax expense
Income tax expense       55.2         58.6
 Net income            $   114.6  $   121.9
Basic and diluted         $    0.36 $   
earnings per common share              0.36
(1) Total non-interest expense includes $8.4 million and $6.6
million of non-operating expenses for
 the six months ended June 30, 2013 and 2012,
respectively. See Non-GAAP financial measures
 and reconciliation
to GAAP.



People's United
Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
                         June 30, 2013              March 31, 2013
Three months ended       Average             Yield/ Average             Yield/
(dollars in millions)    Balance   Interest  Rate   Balance   Interest  Rate
Assets:
Short-term investments   $      $     0.18%  $      $     0.21%
                         152.4     0.1            146.3     0.1
Securities (2)           4,556.9   24.3      2.13   4,548.2   24.5      2.15
Loans:
 Commercial (3)         8,424.6   89.4      4.25   8,244.1   88.9      4.31
 Commercial real estate 7,757.5   87.2      4.50   7,399.5   85.5      4.62
 Residential mortgage   4,048.5   34.7      3.43   3,934.5   34.9      3.55
 Consumer               2,138.6   18.7      3.49   2,148.1   18.8      3.50
 Total loans          22,369.2  230.0     4.11   21,726.2  228.1     4.20
 Total earning assets 27,078.5  $      3.76%  26,420.7  $      3.83%
                                   254.4                     252.7
Other assets             3,720.3                    3,757.3
 Total assets         $                         $ 
                         30,798.8                  30,178.0
Liabilities and
stockholders' equity:
Deposits:
 Non-interest-bearing   $       $     -  %  $       $     -  %
                         4,960.8     -           4,879.0     -
 Savings,
interest-bearing
checking
 and money market     12,316.4  8.3       0.27   12,042.2  8.0       0.27
 Time                   4,558.2   12.2      1.07   4,637.2   12.8      1.10
 Total deposits       21,835.4  20.5      0.38   21,558.4  20.8      0.39
Borrowings:
 Federal Home Loan Bank 1,778.3   2.0       0.44   1,344.0   1.7       0.52
advances
 Federal funds          788.0     0.4       0.19   603.3     0.3       0.20
purchased
 Retail repurchase      492.3     0.2       0.19   559.6     0.3       0.20
agreements
 Other borrowings     1.0       -         1.75   1.1       -         1.60
 Total borrowings     3,059.6   2.6       0.34   2,508.0   2.3       0.37
Notes and debentures     653.1     6.1       3.75   659.1     6.3       3.81
 Total funding        25,548.1  $     0.46%  24,725.5  $     0.48%
liabilities                        29.2                      29.4
Other liabilities        425.8                      448.0
 Total liabilities    25,973.9                   25,173.5
Stockholders' equity     4,824.9                    5,004.5
 Total liabilities
and
 stockholders'      $                         $ 
equity                   30,798.8                  30,178.0
Net interest                       $      3.30%            $      3.35%
income/spread (4)                  225.2                     223.3
Net interest margin                          3.33%                      3.38%
Operating net interest                       3.33%                      3.38%
margin (5)
(1) Average yields earned and rates paid are
annualized.
(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) The fully taxable equivalent adjustment was $4.3 million, $4.0 million and
$2.7 million for the three months ended
 June 30, 2013, March 31, 2013 and June 30,
2012, respectively.
(5) See Non-GAAP financial measures and
reconciliation to GAAP.
People's United
Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
                         June 30, 2012
Three months ended       Average             Yield/
(dollars in millions)    Balance   Interest  Rate
Assets:
Short-term investments   $      $     0.25%
                         561.6     0.4
Securities (2)           2,964.4   19.1      2.58
Loans:
 Commercial (3)         7,493.5   93.0      4.97
 Commercial real estate 7,011.9   96.4      5.50
 Residential mortgage   3,832.5   36.2      3.78
 Consumer               2,176.0   20.0      3.68
 Total loans          20,513.9  245.6     4.79
 Total earning assets 24,039.9  $      4.41%
                                   265.1
Other assets             3,713.2
 Total assets         $ 
                         27,753.1
Liabilities and
stockholders' equity:
Deposits:
 Non-interest-bearing   $       $     -  %
                         4,596.5     -
 Savings,
interest-bearing
checking
 and money market     11,511.4  10.1      0.35
 Time                   5,081.8   13.5      1.06
 Total deposits       21,189.7  23.6      0.45
Borrowings:
 Federal Home Loan Bank 330.8     1.2       1.48
advances
 Federal funds          10.5      -         0.21
purchased
 Retail repurchase      465.9     0.3       0.27
agreements
 Other borrowings     26.8      0.1       0.98
 Total borrowings     834.0     1.6       0.77
Notes and debentures     160.0     1.6       4.05
 Total funding        22,183.7  $     0.48%
liabilities                        26.8
Other liabilities        381.4
 Total liabilities    22,565.1
Stockholders' equity     5,188.0
 Total liabilities
and
 stockholders'      $ 
equity                   27,753.1
Net interest                       $      3.93%
income/spread (4)                  238.3
Net interest margin                          3.96%
Operating net interest                       3.88%
margin (5)
(1) Average yields earned and rates paid are
annualized.
(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) The fully taxable equivalent adjustment was $4.3 million, $4.0 million and
$2.7 million for the three months ended
 June 30, 2013, March 31, 2013 and June 30,
2012, respectively.
(5) See Non-GAAP financial measures and
reconciliation to GAAP.
People's United
Financial, Inc.
AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS (1)
                         June 30, 2013              June 30, 2012
Six months ended         Average             Yield/ Average             Yield/
(dollars in millions)    Balance   Interest  Rate   Balance   Interest  Rate
Assets:
Short-term investments   $      $     0.19%  $      $     0.25%
                         149.4     0.2            548.3     0.7
Securities (2)           4,552.5   48.8      2.14   2,857.5   37.8      2.65
Loans:
 Commercial (3)         8,334.8   178.3     4.28   7,433.5   187.6     5.05
 Commercial real estate 7,579.5   172.7     4.56   7,065.3   188.1     5.32
 Residential mortgage   3,991.8   69.6      3.49   3,792.4   72.9      3.84
 Consumer               2,143.3   37.5      3.50   2,188.7   40.7      3.72
 Total loans          22,049.4  458.1     4.16   20,479.9  489.3     4.78
 Total earning assets 26,751.3  $      3.79%  23,885.7  $      4.42%
                                   507.1                     527.8
Other assets             3,738.8                    3,722.1
 Total assets         $                         $ 
                         30,490.1                  27,607.8
Liabilities and
stockholders' equity:
Deposits:
 Non-interest-bearing   $       $     -  %  $       $     -  %
                         4,920.1     -           4,501.6     -
 Savings,
interest-bearing         12,180.0  16.3      0.27   11,349.0  21.1      0.37
checking and money
market
 Time                   4,597.5   25.0      1.09   5,165.9   25.6      0.99
 Total deposits       21,697.6  41.3      0.38   21,016.5  46.7      0.45
Borrowings:
 Federal Home Loan Bank 1,562.3   3.7       0.48   331.4     2.4       1.48
advances
 Federal funds          696.2     0.7       0.19   7.9       -         0.19
purchased
 Retail repurchase      525.8     0.5       0.20   480.3     0.7       0.28
agreements
 Other borrowings     1.0       -         1.67   26.9      0.2       0.98
 Total borrowings     2,785.3   4.9       0.35   846.5     3.3       0.77
Notes and debentures     656.1     12.4      3.78   159.9     3.8       4.76
 Total funding        25,139.0  $     0.47%  22,022.9  $     0.49%
liabilities                        58.6                      53.8
Other liabilities        436.9                      382.4
 Total liabilities    25,575.9                   22,405.3
Stockholders' equity     4,914.2                    5,202.5
 Total liabilities    $                         $ 
and stockholders' equity 30,490.1                  27,607.8
Net interest                       $      3.32%            $      3.93%
income/spread (4)                  448.5                     474.0
Net interest margin                          3.35%                      3.97%
Operating net interest                       3.35%                      3.93%
margin (5)
(1) Average yields earned and rates paid are
annualized.
(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) The fully taxable equivalent adjustment was $8.3 million and $5.2 million
for the six months ended June 30, 2013 and
 2012, respectively.
(5) See Non-GAAP financial measures and
reconciliation to GAAP.



People's United Financial,
Inc.
 Loans acquired in connection with business combinations are initially
recorded at fair value, determined based
upon an 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
                           June 30,    March 31, Dec. 31,  Sept. 30, June 30,
(dollars in millions)      2013        2013      2012      2012      2012
Originated non-performing
loans:
Commercial Banking:
 Commercial real estate   $       $     $     $     $    
                           70.2        86.5      84.4      88.5      90.5
 Commercial and           68.6        50.9      54.8      64.6      62.2
industrial
 Equipment financing      27.8        24.8      27.2      37.4      37.3
 Total                  166.6       162.2     166.4     190.5     190.0
Retail:
 Residential mortgage     59.6        66.8      65.0      60.6      63.7
 Home equity              21.0        22.2      21.0      14.6      13.7
 Other consumer           0.1         0.2       0.3       0.3       0.2
 Total                  80.7        89.2      86.3      75.5      77.6
 Total originated       247.3       251.4     252.7     266.0     267.6
non-performing loans (1)
REO:
 Residential              16.0        16.9      17.2      7.2       5.6
 Commercial               10.9        9.6       11.4      12.6      14.1
 Total REO              26.9        26.5      28.6      19.8      19.7
Repossessed assets         6.3         7.2       8.3       8.2       7.2
 Total non-performing   $        $      $      $      $   
assets                     280.5       285.1     289.6     294.0     294.5
Acquired non-performing    $        $      $      $      $   
loans (contractual amount) 159.0       180.7     181.6     202.0     236.6
(2)
Originated non-performing
loans as a percentage
 of originated loans      1.18%       1.25%     1.30%     1.45%     1.52%
Non-performing assets as a
percentage of:
 Originated loans, REO    1.33        1.42      1.48      1.59      1.67
and repossessed assets
 Tangible stockholders'
equity and originated
 allowance for loan    10.33       9.78      9.45      9.41      9.37
losses
(1) Reported net of government guarantees totaling $20.4 million at June 30,
2013, $9.9 million at March 31, 2013,
 $9.7 million at Dec. 31, 2012, $14.1 million at Sept.
30, 2012 and $14.8 million at June 30, 2012.
(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
                           June 30,    March 31, Dec. 31,  Sept. 30, June 30,
(dollars in millions)      2013        2013      2012      2012      2012
Allowance for loan losses
on originated loans:
 Balance at beginning of  $        $      $      $      $   
period                     177.5       177.5     175.5     175.5     175.5
 Charge-offs              (12.0)      (11.3)    (11.6)    (11.1)    (12.3)
 Recoveries               1.9         1.5       1.6       1.7       1.5
 Net loan charge-offs   (10.1)      (9.8)     (10.0)    (9.4)     (10.8)
 Provision for loan       10.1        9.8       12.0      9.4       10.8
losses
 Balance at end of      177.5       177.5     177.5     175.5     175.5
period
Allowance for loan losses
on acquired loans:
 Balance at beginning of  9.8         10.5      10.5      4.8       7.7
period
 Charge-offs              (0.7)       (3.3)     -         -         (2.7)
 Provision for loan       (0.9)       2.6       -         5.7       (0.2)
losses
 Balance at end of      8.2         9.8       10.5      10.5      4.8
period
 Total allowance for    $        $      $      $      $   
loan losses                185.7       187.3     188.0     186.0     180.3
Originated allowance for
loan losses as a
percentage of:
 Originated loans       0.85%       0.88%     0.91%     0.95%     1.00%
 Originated             71.8        70.6      70.3      66.0      65.6
non-performing loans
Commercial banking
originated allowance
 for loan losses as a
percentage of
 originated commercial    1.05        1.11      1.13      1.22      1.29
banking loans
Retail originated
allowance for loan losses
 as a percentage of       0.31        0.32      0.36      0.35      0.37
originated retail loans
NET LOAN CHARGE-OFFS
(RECOVERIES)
                           Three Months Ended
                           June 30,    March 31, Dec. 31,  Sept. 30, June 30,
(dollars in millions)      2013        2013      2012      2012      2012
Commercial Banking:
 Commercial real estate   $      $     $     $     $    
                           4.7          6.1      2.5      3.5      6.1
 Commercial and           1.5         3.7       2.7       2.6       3.1
industrial
 Equipment financing      0.7         (0.4)     1.0       1.1       1.2
 Total                  6.9         9.4       6.2       7.2       10.4
Retail:
 Residential mortgage     2.3         1.9       1.7       1.3       1.4
 Home equity              1.4         1.5       1.7       0.6       1.4
 Other consumer           0.2         0.3       0.4       0.3       0.3
 Total                  3.9         3.7       3.8       2.2       3.1
 Total                  $       $     $     $     $    
                           10.8        13.1      10.0       9.4     13.5
Net loan charge-offs to    0.19%       0.24%     0.19%     0.18%     0.26%
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 fully taxable
equivalent ("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
acquired 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 and other 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.
Excluded from operating net interest
margin is cost recovery income on acquired loans. 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 intangible assets) (the numerator) to
(ii)tangible assets (total assets less goodwill and
other acquisition-related intangible assets) (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                      Six Months
                                                               Ended
                       June    March   Dec.    Sept.   June    June    June
                       30,     31,     31,     30,     30,     30,     30,
(dollars in millions)  2013    2013    2012    2012    2012    2013    2012
Total non-interest     $    $    $    $    $    $    $   
expense                205.8   212.0   207.4   208.9   205.7   417.8   414.3
Adjustments to arrive
at operating
 non-interest
expense:
 Writedowns of        -       (6.2)   -       -       -       (6.2)   -
banking house assets
 Severance-related    (0.4)   (1.5)   (2.9)   (0.9)   (1.1)   (1.9)   (3.5)
costs
 Acquisition
integration and other  -       (0.3)   -       (2.3)   (2.5)   (0.3)   (3.1)
costs
 Total              (0.4)   (8.0)   (2.9)   (3.2)   (3.6)   (8.4)   (6.6)
 Operating          205.4   204.0   204.5   205.7   202.1   409.4   407.7
non-interest expense
 Amortization of
other
acquisition-related
 intangible assets  (6.6)   (6.5)   (6.7)   (6.7)   (6.8)   (13.1)  (13.4)
 Other (1)            (3.4)   (1.5)   (0.6)   (2.7)   (2.1)   (4.9)   (4.5)
 Total              $    $    $    $    $    $    $   
                       195.4   196.0   197.2   196.3   193.2   391.4   389.8
Net interest income    $    $    $    $    $    $    $   
(FTE basis)            225.2   223.3   228.6   237.8   238.3   448.5   474.0
Total non-interest     86.1    82.9    84.3    81.4    75.7    169.0   148.1
income
 Total revenues       311.3   306.2   312.9   319.2   314.0   617.5   622.1
Adjustments:
 BOLI FTE adjustment  0.4     0.4     0.6     0.7     0.6     0.8     1.5
 Other (2)            (0.2)   (0.7)   (0.7)   -       -       (0.9)   -
 Total              $    $    $    $    $    $    $   
                       311.5   305.9   312.8   319.9   314.6   617.4   623.6
 Efficiency ratio   62.7%   64.1%   63.0%   61.4%   61.4%   63.4%   62.5%
(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 Months Ended                      Six Months
                                                               Ended
                       June    March   Dec.    Sept.   June    June    June
                       30,     31,     31,     30,     30,     30,     30,
(dollars in millions,  2013    2013    2012    2012    2012    2013    2012
except per share data)
Net income, as         $    $    $    $    $    $    $   
reported                62.1   52.5   61.2   62.2   64.6  114.6   121.9
Adjustments to arrive at
operating earnings:
 Writedowns of        -       6.2     -       -       -       6.2     -
banking house assets
 Severance-related    0.4     1.5     2.9     0.9     1.1     1.9     3.5
costs
 Acquisition
integration and other  -       0.3     -       2.3     2.5     0.3     3.1
costs
 Total pre-tax      0.4     8.0     2.9     3.2     3.6     8.4     6.6
adjustments
Tax effect             (0.1)   (2.6)   (0.9)   (1.0)   (1.2)   (2.7)   (2.2)
 Total adjustments, 0.3     5.4     2.0     2.2     2.4     5.7     4.4
net of tax
 Operating earnings $    $    $    $    $    $    $   
                        62.4   57.9   63.2   64.4   67.0  120.3   126.3
Earnings per share, as $    $    $    $    $    $    $   
reported                0.20   0.16   0.18   0.18   0.19   0.36   0.36
Adjustments to arrive
at operating
 earnings per share:
 Writedowns of        -       0.02    -       -       -       0.02    -
banking house assets
 Severance-related    -       -       0.01    -       -       -       0.01
costs
 Acquisition
integration and other  -       -       -       0.01    0.01    -       0.01
costs
 Total adjustments  -       0.02    0.01    0.01    0.01    0.02    0.02
per share
 Operating earnings $    $    $    $    $    $    $   
per share               0.20   0.18   0.19   0.19   0.20   0.38   0.38
Average total assets   $     $     $     $     $     $     $  
                       30,799  30,178  28,991  28,234  27,753  30,490  27,608
Operating return on
 average assets       0.81%   0.77%   0.87%   0.91%   0.97%   0.79%   0.91%
(annualized)
OPERATING NET INTEREST MARGIN
                       Three Months Ended                      Six Months
                                                               Ended
                       June    March   Dec.    Sept.   June    June    June
                       30,     31,     31,     30,     30,     30,     30,
(dollars in millions)  2013    2013    2012    2012    2012    2013    2012
Net interest income    $    $    $    $    $    $    $   
(FTE basis)            225.2   223.3   228.6   237.8   238.3   448.5   474.0
Adjustments to arrive
at operating
 net interest income:
 Cost recovery income -       -       -       (4.1)   (4.7)   -       (4.7)
 Total adjustments  -       -       -       (4.1)   (4.7)   -       (4.7)
 Operating net      $    $    $    $    $    $    $   
interest income        225.2   223.3   228.6   233.7   233.6   448.5   469.3
Net interest margin,   3.33%   3.38%   3.63%   3.89%   3.96%   3.35%   3.97%
as reported (1)
Adjustments to arrive
at operating
 net interestmargin
(1):
 Cost recovery income -       -       -       (0.07)  (0.08)  -       (0.04)
 Total adjustments  -       -       -       (0.07)  (0.08)  -       (0.04)
 Operating net      3.33%   3.38%   3.63%   3.82%   3.88%   3.35%   3.93%
interest margin (1)
Average total earning  $     $     $     $     $     $     $  
assets                 27,079  26,421  25,206  24,474  24,040  26,751  23,886
(1) Annualized.



People's United
Financial, Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP - continued
OPERATING RETURN ON AVERAGE TANGIBLE STOCKHOLDERS' EQUITY
                     Three Months Ended                          Six Months
                                                                 Ended
                     June 30, March    Dec. 31, Sept.    June    June   June
                              31,               30,      30,     30,    30,
(dollars in          2013     2013     2012     2012     2012    2013   2012
millions)
Operating earnings   $       $       $       $       $      $      $
                     62.4    57.9    63.2    64.4    67.0   120.3 126.3
Average              $ 4,825 $ 5,005 $ 5,107 $ 5,161 $       $      $
stockholders' equity                                     5,188  4,914 5,203
Less: Average goodwill and
average other

acquisition-related  2,144    2,151    2,157    2,164    2,166   2,147  2,169
intangible assets
Average tangible     $ 2,681 $ 2,854 $ 2,950 $ 2,997 $       $      $
stockholders' equity                                     3,022  2,767 3,034
Operating return on
average tangible
 stockholders'      9.3%     8.1%     8.6%     8.6%     8.9%    8.7%   8.3%
equity (annualized)
OPERATING DIVIDEND PAYOUT
RATIO
                     Three Months Ended                          Six Months
                                                                 Ended
                     June 30, March    Dec. 31, Sept.    June    June   June
                              31,               30,      30,     30,    30,
(dollars in          2013     2013     2012     2012     2012    2013   2012
millions)
Dividends paid       $       $       $       $       $      $      $
                     51.9    52.8    53.6    54.3    55.1   104.7 110.0
Operating earnings   $       $       $       $       $      $      $
                     62.4    57.9    63.2    64.4    67.0   120.3 126.3
Operating dividend   83.2%    91.2%    84.8%    84.3%    82.2%   87.0%  87.1%
payout ratio
TANGIBLE EQUITY
RATIO
                     June 30, March    Dec. 31, Sept.    June
                              31,               30,      30,
(dollars in          2013     2013     2012     2012     2012
millions)
Total stockholders'  $ 4,678 $ 4,886 $ 5,039 $ 5,107 $
equity                                                   5,135
Less: Goodwill and
other

acquisition-related  2,140    2,147    2,154    2,160    2,166
intangible assets
Tangible             $ 2,538 $ 2,739 $ 2,885 $ 2,947 $
stockholders' equity                                     2,969
Total assets         $31,345  $30,598  $30,324  $28,576  $28,137
Less: Goodwill and
other

acquisition-related  2,140    2,147    2,154    2,160    2,166
intangible assets
Tangible assets      $29,205  $28,451  $28,170  $26,416  $25,971
Tangible equity      8.7%     9.6%     10.2%    11.2%    11.4%
ratio
TANGIBLE BOOK VALUE PER SHARE
                     June 30, March    Dec. 31, Sept.    June
                              31,               30,      30,
(in millions, except 2013     2013     2012     2012     2012
per share data)
Tangible             $ 2,538 $ 2,739 $ 2,885 $ 2,947 $
stockholders' equity                                     2,969
Common shares issued 396.32   396.24   395.81   395.88   395.87
Less: Shares
classified as        78.54    67.31    56.18    51.48    47.00
treasury shares
 Unallocated 8.19     8.28     8.36     8.45     8.54
ESOP shares
Common shares        309.59   320.65   331.27   335.95   340.33
Tangible book value  $       $       $       $       $ 
per share            8.20    8.54    8.71    8.77    8.72





SOURCE People's United Financial, Inc.

Website: http://www.peoples.com
Contact: INVESTOR CONTACT: Peter Goulding, CFA, Investor Relations,
203.338.6799, peter.goulding@peoples.com; MEDIA CONTACT: Valerie Carlson,
Corporate Communications, 203.338.2351, valerie.carlson@peoples.com