Profile: People's United Financial Inc (PBCT.O)
17 Jul 2019
People's United Financial, Inc., incorporated on November 2, 2006, is a bank holding company and a financial holding company of People's United Bank (the Bank). The Bank is engaged in providing commercial banking, retail banking and wealth management services to individual, corporate and municipal customers. The Company operates through two segments: Commercial Banking and Retail Banking. Commercial Banking segment is engaged in commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. It also offers cash management, correspondent banking, municipal banking, institutional trust services, corporate trust, insurance services and private banking, among others. Retail Banking segment provides consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. The Retail Banking segment also includes brokerage, financial advisory services, investment management services, and life insurance and non-institutional trust services.
Traditional banking activities are conducted primarily within New England and southeastern New York, and include extending secured and unsecured commercial and consumer loans, originating mortgage loans secured by residential and commercial properties, and accepting consumer, commercial and municipal deposits. In addition to traditional banking activities, the Bank provides specialized financial services, which include personal, institutional and employee benefit trust; cash management; and municipal banking. Through its non-banking subsidiaries, the Bank offers brokerage, financial advisory services, investment management services and life insurance through People's Securities, Inc. (PSI); equipment financing through People's Capital and Leasing Corp. (PCLC) and People's United Equipment Finance Corp. (PUEFC), and other insurance services through People's United Insurance Agency, Inc. (PUIA).
The Bank's distribution network includes investment and brokerage offices, commercial banking offices, online banking and investment trading, a round the clock telephone banking service. The Bank maintains a mortgage warehouse lending group located in Kentucky and a national credits group that has participations in commercial loans and commercial real estate loans to borrowers in various industries on a national scale.
The Company conducts its lending activities principally through its Commercial Banking and Retail Banking operating segments. Its lending activities consist of originating loans secured by commercial and residential properties, and extending secured and unsecured loans to commercial and consumer customers. The commercial lending businesses include commercial real estate, commercial and industrial lending, and equipment financing. It offers residential mortgage loan products, including conventional fixed-rate loans, jumbo fixed-rate loans, adjustable-rate loans, interest-only loans (loans where payments made by the borrower consist of only interest for a set period of time, before the payments change to principal and interest), as well as Federal Housing Administration insured loans and various state housing finance authority loans. It offers home equity lines of credit (HELOCs) and home equity loans, and other forms of installment and revolving credit loans. As of December 31, 2016, the Company's total loans amounted to $29.74 billion.
The Company utilizes the securities portfolio for earnings generation (in the form of interest and dividend income), liquidity, interest-rate risk (IRR) management, asset diversification and tax planning. Its securities portfolio includes state and municipal, corporate debt securities, the United States Treasury and agency, government sponsored enterprise (GSE) residential mortgage-backed securities and collateralized mortgage obligations (CMOs). As of December 31, 2016, the Company's total securities available for sale had a total fair value of $4.4 billion. As of December 31, 2016, the Company's total securities held to maturity had a total fair value of $2.01 billion.
Sources of Funds
The Company's primary funding sources are deposits and stockholders' equity. Its primary source for borrowings are advances from the Federal Home Loan Banks (FHLB) of Boston, which provides credit for member institutions within its assigned region and federal funds purchased, which are typically unsecured overnight loans among banks. As of December 31, 2016, the Company's total deposits amounted to approximately $29.86 billion.
People's United Financial Inc
850 Main St
BRIDGEPORT CT 06604-4917