People's United Financial, Inc. operates as the bank holding company for People’s United Bank, National Association that provides commercial banking, retail banking and wealth management services to individual, corporate and municipal customers.
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,...
People's United Financial, Inc. operates as the bank holding company for People’s United Bank, National Association that provides commercial banking, retail banking and wealth management services to individual, corporate and municipal customers.
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 company provides specialized financial services tailored to specific markets, including personal, institutional and employee benefit trust; cash management; and municipal banking. Through its non-banking subsidiaries, the company 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), People’s United Equipment Finance Corp. (PUEFC) and LEAF Commercial Capital, Inc. (LEAF); and investment advisory services and financial management and planning services through People’s United Advisors, Inc. (PUA). This range of financial services is delivered through a network of 417 branches located in Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire and Maine, including 84 full-service in-store Stop & Shop supermarket branches throughout Connecticut and 56 in southeastern New York that provide customers with seven-days-a-week banking in most locations. The company’s distribution network includes investment and brokerage offices, commercial banking offices, online banking and investment trading, a 24-hour telephone banking service and participation in a worldwide ATM network. PCLC, PUEFC and LEAF maintain a sales presence in 16 states to support equipment financing operations throughout the United States. The company 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’s operations are divided into three primary segments that represent its core businesses: Commercial Banking; Retail Banking; and Wealth Management. In addition, the Treasury area manages its securities portfolio, short-term investments, brokered deposits and wholesale borrowings.
The company’s segments have been aggregated into two segments: Commercial Banking and Retail Banking. Commercial Banking consists principally of commercial real estate lending, middle market and business banking, mortgage warehouse and asset-based lending, and the equipment financing operations of PCLC, PUEFC and LEAF. This segment also provides treasury management services, capital market capabilities and commercial deposit products. Retail Banking includes, as its principal business lines, consumer lending, including residential mortgage and home equity lending; and consumer deposit gathering activities. This segment also includes those services provided by PSI and PUA, as well as non-institutional trust services.
Lending Activities
The company conducts its lending activities principally through its Commercial Banking and Retail Banking operating segments. The company’s lending activities consist of originating loans secured by commercial and residential properties, and extending secured and unsecured loans to commercial and consumer customers. Its loan portfolio is primarily concentrated within New England and New York.
Commercial Portfolio
The commercial lending businesses include commercial real estate, commercial and industrial lending, and equipment financing.
Commercial Real Estate: The company manages the commercial real estate portfolio by limiting the concentration in any particular loan type, term, industry, or to any individual borrower.
Commercial Real Estate Portfolio
Commercial real estate is dependent on the successful operation of the related income-producing real estate.
Commercial and Industrial: The company provides diversified products and services to its commercial customers, including short-term working capital credit facilities, term financing, asset-based loans, letters of credit, cash management services and commercial deposit accounts.
Commercial and Industrial Portfolio
Equipment Financing: The company has three equipment financing businesses – PCLC, PUEFC and LEAF. PCLC is an equipment finance company engaging in financing for the transportation, equipment rental, construction, manufacturing, printing, packaging and service industries in all 50 states. PCLC assists companies in acquiring new and used equipment and/or refinancing existing equipment. PUEFC is a secured equipment finance company with a focus on the construction, equipment rental, road transportation and waste industries nationwide. LEAF maintains a nationwide origination footprint working with manufacturers, distributors, dealers and end-users of essential use equipment and software in a variety of industries, including industrial, manufacturing, light construction, office products and medical.
Retail Portfolio
Residential Mortgage Lending: The company offers its customers a range of residential mortgage loan products. These include conventional fixed-rate loans, jumbo fixed-rate loans, adjustable-rate loans, sometimes referred to as ‘ARM’ 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. The company originates these loans through its network of retail branches and calling officers, as well as correspondent lenders and mortgage brokers.
Home Equity and Other Consumer Lending: The company offers home equity lines of credit and home equity loans, and to a lesser extent, other forms of installment and revolving credit loans.
Deposits
The company’s strategy is to focus on increasing deposits by providing a range of services to commercial, retail, business and wealth management customers. It provides customers access to their deposits through 417 branches, including 140 full-service in-store Stop & Shop supermarket branches, 631 ATMs, telephone banking and an Internet banking site.
Non-interest-bearing deposits are primary source of low-cost funding and fee income for the company. Non-interest-bearing deposits equaled 30% of total deposits as of December 31, 2020. Included in total deposits at December 31, 2020 are brokered deposits, including money market, time and interest-bearing checking.
Securities
As of December 31, 2020, the company’s securities included debt securities, such as the U.S. treasury and agency, and government sponsored enterprise mortgage-backed securities and collateralized mortgage obligations.
Sale of Business
In November 2020, the company completed its sale of People’s United Insurance Agency, Inc. (PUIA), a full-service insurance brokerage company.
Supervision and Regulation
As a bank holding company and a financial holding company, the company is regulated under the Bank Holding Company Act of 1956 and is subject to supervision, examination and regulation by the Board of Governors of the Federal Reserve System.
The company’s common stock is registered with the Securities and Exchange Commission (the ‘SEC’) under the Securities Exchange Act of 1934 (the ‘Exchange Act’), as amended. The company is subject to the information, proxy solicitation, insider trading, and other requirements and restrictions of the Exchange Act.
The bank is subject to regulation, examination, supervision and reporting requirements by the Office of the Comptroller of the Currency (OCC) as its primary regulator, by the Federal Deposit Insurance Corporation (FDIC) as the deposit insurer and by the Consumer Financial Protection Bureau with respect to compliance with designated consumer financial laws. Its deposit accounts are insured up to applicable limits by the FDIC under the Deposit Insurance Fund (DIF).
The bank’s brokerage subsidiary, PSI, is regulated by the SEC, the Financial Industry Regulatory Authority and state securities regulators. PUA is subject to the disclosure and regulatory requirements of the Investment Advisers Act of 1940, as administered by the SEC. The bank is a member of, and pays its deposit insurance assessments to, the DIF.
The prohibition, however, does not apply to mortgage loans advanced by an insured depository institution, such as the bank, that are subject to the insider lending restrictions of Section 22(h) of the Federal Reserve Act.
Under the Community Reinvestment Act, as implemented by the OCC regulations, any national bank, including the bank, has a continuing and affirmative obligation consistent with its safe and sound operation to help meet the credit needs of its entire community, including low and moderate income neighborhoods.
The bank is subject to OCC and Financial Crimes Enforcement Network regulations implementing the Bank Secrecy Act, as amended by the USA PATRIOT Act. Further, certain provisions of Title III impose affirmative reporting obligations on a range of financial institutions, including national banks like the bank.
The bank is a member of the Federal Home Loan Bank system. The rights of the company’s stockholders are governed by the Delaware General Corporation Law.
History
People's United Financial, Inc. was founded in 1842.
