10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT

Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, 2015

People’s United Financial, Inc.

(Exact name of registrant as specified in its charter)

001-33326

(Commission File Number)

Delaware	20-8447891
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

850 Main Street

Bridgeport, Connecticut 06604

(Address of principal executive offices, including zip code)

(203) 338-7171

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, $0.01 par value per share	NASDAQ Global Select Market
(Title of each class)	(Name of each exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  x    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes  ¨    No  x

The aggregate market value of voting stock held by non-affiliates of the registrant, based upon the last reported sales price of its common stock as of the last business day of the registrant’s most recently completed second quarter on the NASDAQ Global Select Market was $5,023,144,734.

As of February 17, 2016, there were 310,440,469 shares of the registrant’s common stock outstanding.

Documents Incorporated by Reference

Portions of the Proxy Statement for the Annual Meeting of Shareholders to be held on April 21, 2016, are incorporated by reference into Part III.

PEOPLE’S UNITED FINANCIAL, INC.

2015 FORM 10-K

Table of Contents

		Page
Part I
Item 1.	Business		1
Item 1A.	Risk Factors		11
Item 1B.	Unresolved Staff Comments		18
Item 2.	Properties		18
Item 3.	Legal Proceedings		18
Item 4.	Mine Safety Disclosures		18
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		19
Item 6.	Selected Financial Data		21
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		22
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		73
Item 8.	Financial Statements and Supplementary Data		78
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		78
Item 9A.	Controls and Procedures		78
Item 9B.	Other Information		78
Part III
Item 10.	Directors, Executive Officers and Corporate Governance		79
Item 11.	Executive Compensation		79
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		80
Item 13.	Certain Relationships and Related Transactions, and Director Independence		80
Item 14.	Principal Accountant Fees and Services		80
Part IV
Item 15.	Exhibits and Financial Statement Schedules		81
Signatures			85

Part I

Item 1. Business

General

People’s United Financial, Inc. (“People’s United” or the “Company”) is a bank holding company and a financial holding company registered under the Bank Holding Company Act of 1956 (the “BHC Act”), as amended, and is incorporated under the state laws of Delaware. People’s United is the holding company for People’s United Bank, National Association (the “Bank”), a national banking association headquartered in Bridgeport, Connecticut. Prior to February 23, 2015, People’s United was a savings and loan holding company within the meaning of the Home Owners’ Loan Act and the Bank was a federally-chartered savings bank. These changes primarily affect the manner in which both People’s United and the Bank are regulated, and did not have a material effect on either People’s United’s or the Bank’s financial condition or results of operations.

The principal business of People’s United is to provide, through the Bank and its subsidiaries, 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 Bank provides specialized financial services tailored to specific markets including: personal, institutional and employee benefit trust; cash management; and municipal banking and finance. 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”).

This full range of financial services is delivered through a network of 396 branches located in Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire and Maine, including 84 full-service Stop & Shop supermarket branches throughout Connecticut and 66 in southeastern New York that provide customers with seven-day-a-week banking. The Bank’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 and PUEFC maintain a sales presence in 14 states to support equipment financing operations throughout the United States. 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.

People’s United’s operations are divided into three primary operating segments that represent its core businesses: Commercial Banking; Retail Banking; and Wealth Management. In addition, the Treasury area manages People’s United’s securities portfolio, short-term investments, brokered deposits and wholesale borrowings.

The Company’s operating segments have been aggregated into two reportable segments: Commercial Banking and Retail Banking. Commercial Banking consists principally of commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. This segment also includes the equipment financing operations of PCLC and PUEFC, as well as cash management, correspondent banking and municipal banking. In addition, Commercial Banking consists of institutional trust services, corporate trust, insurance services provided through PUIA and private banking. Retail Banking includes, as its principal business lines, consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. In addition, Retail Banking includes brokerage, financial advisory services, investment management services and life insurance provided by PSI and non-institutional trust services.

Further discussion of People’s United’s business and operations appears on pages 22 through 78.

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Supervision and Regulation—People’s United Financial, Inc.

General

As a bank holding company and a financial holding company, People’s United is regulated under the BHC Act and is subject to supervision, examination and regulation by the Board of Governors of the Federal Reserve System (the “FRB”). Among other things, this authority permits the FRB to restrict or prohibit activities that are determined to be a serious risk to the subsidiary bank. A bank holding company should have sufficient capital and an effective capital planning process, consistent with its overall risk profile and considering the size, scope, and complexity of its operations, to ensure its safe and sound operation. In addition, the FRB evaluates a bank holding company’s capital planning and capital distribution processes, and its capital sufficiency in light of relevant regulations and supervisory guidance applicable to bank holding companies.

Activities Restrictions Applicable to Bank Holding Companies. The activities of a bank holding company, including People’s United, must be financially-related activities permissible for a bank holding company, unless the bank holding company has elected to be treated as a financial holding company. A bank holding company that has made a financial holding company election may also engage in activities permissible under section 4(k) of the BHC Act.

Federal law prohibits a bank holding company directly or indirectly, from acquiring:

• control (as defined under the BHC Act) of another bank (or a holding company parent) without prior FRB approval;

• through merger, consolidation or purchase of assets, another bank or a holding company thereof, or acquiring all or substantially all of the assets of such institution or holding company without prior approval by the FRB or the Office of the Comptroller of the Currency (the “OCC”); or

• control of any depository institution not insured by the Federal Deposit Insurance Corporation (the “FDIC”) (except through a merger with and into the holding company’s bank subsidiary that is approved by the OCC).

The BHC Act prohibits a bank holding company (directly or indirectly, or through one or more subsidiaries) from acquiring another bank or holding company thereof without prior written approval of the FRB; acquiring or retaining, with certain exceptions, more than 5% of a non-subsidiary bank, a non-subsidiary holding company or a non-subsidiary company engaged in activities other than those permitted by the BHC Act; or acquiring or retaining control of a depository institution that is not federally insured. In evaluating applications by holding companies to acquire banks, the FRB must consider the financial and managerial resources and future prospects of the company and institution involved, the effect of the acquisition on the risk to the Deposit Insurance Fund (the “DIF”), the convenience and needs of the community and competitive factors.

Federal Securities Law

People’s United’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. People’s United is subject to the information, proxy solicitation, insider trading, and other requirements and restrictions of the Exchange Act.

Delaware Corporation Law

People’s United is incorporated under the laws of the State of Delaware and is, therefore, subject to regulation by the state of Delaware. The rights of People’s United’s stockholders are governed by the Delaware General Corporation Law.

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Regulatory Capital Requirements

Bank holding companies and national banks are subject to various regulations regarding capital requirements administered by U.S. banking agencies. The FRB (in the case of a bank holding company) and the OCC (in the case of a bank) may initiate certain actions if a bank holding company or a bank fails to meet minimum capital requirements. In addition, under its prompt corrective action regulations, the OCC is required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized bank. These actions could have a direct material effect on a bank’s financial statements. People’s United and the Bank are subject to regulatory capital requirements administered by the FRB and the OCC, respectively.

In December 2010, the Basel Committee on Banking Supervision released its final framework for capital requirements (the “Basel framework” or “Basel III”). Final interagency rules to address implementation of the Basel III framework for U.S. financial institutions, including the Company and the Bank, became effective on January 1, 2015. When fully phased-in, these rules will: (i) set forth changes in the calculation of risk-weighted assets; (ii) introduce limitations on what is permissible for inclusion in Tier 1 capital; and (iii) require bank holding companies and their bank subsidiaries to maintain substantially more capital, with a greater emphasis on common equity.

See Management’s Discussion & Analysis—Regulatory Capital Requirements beginning on page 72 for a further discussion regarding capital requirements.

Dividends and Capital Distributions

People’s United is dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and other general corporate purposes. People’s United’s ability to pay cash dividends is governed by federal law and regulations, including requirements to maintain adequate capital above regulatory minimums and safety and soundness practices.

The National Bank Act and OCC regulations impose limitations upon dividend payments by national banks. A national bank must file an application with the OCC if the total amount of its dividends for the applicable calendar year exceeds the national bank’s net income for that year plus its retained net income for the preceding two years. The Bank may not pay dividends to People’s United if, after paying those dividends, it would fail to meet the required minimum levels under risk-based capital guidelines or if the OCC notified the Bank that it was in need of more than normal supervision.

In addition, a national bank is required to file an application with the OCC for the redemption of subordinated debt under certain circumstances, as well as for reductions in permanent capital.

Under the Federal Deposit Insurance Act (the “FDI Act”), an insured depository institution, such as the Bank, is prohibited from making capital distributions, including the payment of dividends, if, after making such distribution, the institution would become “undercapitalized” (as such term is used in the FDI Act). Payment of dividends by the Bank also may be restricted at any time at the discretion of the appropriate regulator if it deems the payment to constitute an unsafe and unsound banking practice. See Note 12 to the Consolidated Financial Statements for a further discussion on capital distributions.

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People’s United Bank, N.A.

General

The Bank is subject to regulation, examination, supervision and reporting requirements by the OCC as its primary regulator, by the FDIC as the deposit insurer and by the Consumer Financial Protection Bureau (the “CFPB”) with respect to compliance with designated consumer financial laws. Its deposit accounts are insured up to applicable limits by the FDIC under the DIF.

The Bank files reports with the OCC concerning its activities and financial condition, and must obtain regulatory approval from the OCC prior to entering into certain transactions, such as mergers with, or acquisitions of, other depository institutions. The OCC conducts periodic examinations to assess compliance with various regulatory requirements. The OCC has substantial discretion to impose enforcement action on a national bank that fails to comply with applicable regulatory requirements, particularly with respect to capital requirements imposed on national banks. In addition, the FDIC has the authority to recommend to the OCC that enforcement action be taken with respect to a particular national bank and, if action is not taken by the OCC, the FDIC has authority to take such action under certain circumstances.

This regulation and supervision establishes a comprehensive framework of activities in which a national bank can engage and is intended primarily for the protection of the DIF, depositors and consumers. The regulatory structure also gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities and examination policies, including policies with respect to the classification of assets and the establishment of adequate loan loss reserves for regulatory purposes. Any change in such laws and regulations or interpretations thereof, whether by the OCC, the FDIC, and the CFPB or through legislation, could have a material adverse impact on the Bank and its operations.

The Bank’s brokerage subsidiary, PSI, is regulated by the SEC, the Financial Industry Regulatory Authority and state securities regulators. PUIA is subject to regulation by applicable state insurance regulators.

Activity Powers. National association banks derive their lending, investment and other activity powers primarily from the National Bank Act and the regulations of the OCC thereunder. Under these laws and regulations, national banks generally may invest in:

• real estate mortgages;

• consumer and commercial loans;

• certain types of debt securities; and

• certain other assets.

The ability of a national bank to invest in debt securities is limited to those securities that are readily marketable, investment grade and primarily non-speculative. OCC regulations also impose limits on the amount of investments in certain types of debt securities.

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Safety and Soundness Standards. Each federal banking agency, including the OCC, has adopted guidelines establishing general standards relating to internal controls, information and internal audit systems, loan documentation, credit underwriting, interest rate exposure, asset growth, asset quality, earnings and compensation, fees and benefits. In general, the guidelines require, among other things, appropriate systems and practices to identify and manage the risks and exposures specified in the guidelines.

In addition, the OCC adopted regulations to require a national bank that is given notice by the OCC that it is not satisfying any of such safety and soundness standards to submit a compliance plan to the OCC. If, after being so notified, a national bank fails to submit an acceptable compliance plan or fails in any material respect to implement an accepted compliance plan, the OCC may issue an order directing corrective and other actions of the types to which a significantly undercapitalized institution is subject under the “prompt corrective action” provisions of the Federal Deposit Insurance Corporation Improvement Act (“FDICIA”). If a national bank fails to comply with such an order, the OCC may seek to enforce the order in judicial proceedings and to impose civil monetary penalties.

Prompt Corrective Action. FDICIA also established a system of prompt corrective action to resolve the problems of undercapitalized institutions. Under this system, federal bank regulators, including the OCC, are required to take certain, and authorized to take other, supervisory actions against undercapitalized institutions, based upon five categories of capitalization which FDICIA created: “well-capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.”

The severity of the action authorized or required to be taken under the prompt corrective action regulations increases as a bank’s capital decreases within the three undercapitalized categories. All banks are prohibited from paying dividends or other capital distributions or paying management fees to any controlling person if, following such distribution, the bank would be undercapitalized. The OCC is required to monitor closely the condition of an undercapitalized savings bank and to restrict the growth of its assets. An undercapitalized bank is required to file a capital restoration plan within 45 days of the date the bank receives notice or is deemed to have notice that it is within any of the three undercapitalized categories, and the plan must be guaranteed by any parent holding company.

The aggregate liability of a parent holding company is limited to the lesser of:

• an amount equal to 5% of the bank’s total assets at the time it became “undercapitalized”; and

• the amount that is necessary (or would have been necessary) to bring the bank into compliance with all capital standards applicable with respect to such bank as of the time it fails to comply with a capital restoration plan.

If a bank fails to submit an acceptable plan, it is treated as if it were “significantly undercapitalized.” Banks that are significantly or critically undercapitalized are subject to a wider range of regulatory requirements and restrictions. Under OCC regulations, generally, a national bank is treated as “well-capitalized” if its Total risk-based capital ratio is 10% or greater, its Tier 1 risk-based capital ratio is 8% or greater, its Common Equity Tier 1 (“CET1”) capital ratio is 6.5% and its Tier 1 leverage ratio is 5% or greater, and it is not subject to any order or directive by the OCC to meet a specific capital level. As of December 31, 2015, the Bank’s regulatory capital ratios exceeded the OCC’s numeric criteria for classification as a “well-capitalized” institution. Basel III also revised the prompt corrective action framework by incorporating new regulatory capital minimums, including a requirement for tangible common equity.

5

Insurance Activities. National banks are generally permitted to engage in certain insurance and annuity activities through subsidiaries. However, federal banking laws prohibit depository institutions from conditioning the extension of credit to individuals upon either the purchase of an insurance product or annuity from an entity affiliated with the depository institution or an agreement by the consumer not to purchase an insurance product or annuity from an entity that is not affiliated with the depository institution. Applicable regulations also require prior disclosure of this prohibition to potential insurance product or annuity customers.

Federal banking agencies, including the OCC, also require depository institutions that offer non-deposit investment products, such as certain annuity and related insurance products, to disclose to the consumer that the products are not federally insured, are not guaranteed by the institution and are subject to investment risk including possible loss of principal. These disclosure requirements apply if the institution offers the non-deposit investment products directly or through affiliates or subsidiaries.

Deposit Insurance. The Bank is a member of, and pays its deposit insurance assessments to, the DIF.

The FDIC has established a system for setting deposit insurance premiums based upon the risks a particular bank poses to the DIF. The assessment is based on a bank’s average consolidated total assets minus average tangible equity (defined as Tier 1 capital). The size of the DIF is targeted at 2% of insured deposits. A reduced assessment rate schedule applies once the DIF reaches 1.15% of insured deposits, with additional reductions when the DIF reaches 2% and 2.5% of insured deposits, respectively. The FDIC applies a scorecard-based assessment system for financial institutions with more than $10 billion in assets (such as the Bank). One of the financial ratios used in the scorecard is the ratio of “higher risk” assets to Tier 1 capital and reserves. The classification of assets such as commercial and industrial loans, securities and consumer loans as “higher risk” is determined in accordance with applicable FDIC regulations and guidance.

In October 2015, the FDIC issued a proposed rule that would impose an annual assessment surcharge of 4.5 basis points on banks with $10 billion or more in total assets once the DIF reserve ratio reaches 1.15%. The surcharge will apply until the DIF reserve ratio reaches 1.35% of insured deposits. The Company is currently evaluating the impact of the proposed surcharge on the Company’s Consolidated Financial Statements. See Management’s Discussion & Analysis — Non-Interest Expense beginning on page 43 for a further discussion regarding the proposed rule.

In addition, all FDIC-insured institutions are required to pay assessments to the FDIC at an annual rate of approximately 0.006% of insured deposits to fund interest payments on bonds issued by the Financing Corporation, an agency of the federal government established to recapitalize the predecessor to the Savings Association Insurance Fund. These assessments will continue until the Financing Corporation bonds mature between 2017 and 2019.

Under the FDI Act, the FDIC may terminate the insurance of an institution’s deposits upon a finding that the institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.

Transactions with Affiliates. National banks are subject to the affiliate and insider transaction rules set forth in Sections 23A, 23B, 22(g) and 22(h) of the Federal Reserve Act, and their implementing regulations, Regulation W and Regulation O, issued by the FRB. Affiliated transaction provisions, among other things, prohibit or limit a national bank from extending credit to, or entering into certain transactions with, its affiliates and principal stockholders, directors and executive officers.

In addition, national banks are prohibited from making a loan to an affiliate that is engaged in non-bank holding company activities and purchasing or investing in securities issued by an affiliate that is not a subsidiary. The FRB and the OCC require each depository institution that is subject to the affiliate transaction restrictions of Sections 23A and 23B of the Federal Reserve Act to implement policies and procedures to ensure compliance with Regulation W.

6

In addition to the insider transaction limitations of Sections 22(g) and 22(h) of the Federal Reserve Act, Section 402 of the Sarbanes-Oxley Act of 2002 prohibits the extension of personal loans to directors and executive officers of issuers (as defined in the Sarbanes-Oxley Act). 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.

Privacy Standards. The Bank is subject to OCC regulations implementing statutorily-mandated privacy protection. These regulations require the Bank to disclose its privacy policy, including identifying with whom it shares “non-public personal information,” to customers at the time of establishing the customer relationship and annually thereafter. In addition, the Bank is required to provide its customers with the ability to “opt-out” of having the Bank share their non-public personal information with unaffiliated third parties before the Bank can disclose such information, subject to certain exceptions.

In addition to certain state laws governing protection of customer information, the Bank is subject to federal regulatory guidelines establishing standards for safeguarding customer information. The guidelines describe the agencies’ expectations for the creation, implementation and maintenance of an information security program, which would include administrative, technical and physical safeguards appropriate to the size and complexity of the institution and the nature and scope of its activities. The standards set forth in the guidelines are intended to ensure the security and confidentiality of customer records and information, protect against any anticipated threats or hazards to the security or integrity of such records and protect against unauthorized access to or use of such records or information that could result in substantial harm or inconvenience to any customer. Federal guidelines also impose certain customer disclosures and other actions in the event of unauthorized access to customer information.

Community Reinvestment Act. Under the Community Reinvestment Act (the “CRA”), 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 CRA does not establish specific lending requirements or programs for financial institutions nor does it limit an institution’s discretion to develop the types of products and services that it believes are best suited to its particular community. The CRA requires the OCC, in connection with its examination of a federally-chartered savings bank, to assess the depository institution’s record of meeting the credit needs of its community and to take such record into account in its evaluation of certain applications by such institution.

Current CRA regulations rate an institution based on its actual performance in meeting community needs. In particular, the evaluation system focuses on three tests:

• a lending test, to evaluate the institution’s record of making loans in its service areas;

• an investment test, to evaluate the institution’s record of investing in community development projects, affordable housing and programs benefiting low or moderate income individuals and businesses; and

• a service test, to evaluate the institution’s delivery of services through its branches, ATMs and other offices.

The CRA also requires all institutions to make public disclosure of their CRA ratings. The Bank received a “satisfactory” rating in its most recent CRA examination for the evaluation period ending June 30, 2013. The federal banking agencies adopted regulations implementing the requirements under the Gramm-Leach-Bliley Act that insured depository institutions publicly disclose certain agreements that are in fulfillment of the CRA. The Bank has no such agreements in place at this time.

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Loans to One Borrower. Generally, national banks may not make a loan or extend credit, including credit associated with derivatives and securities financing transactions, to a single or related group of borrowers in excess of 15% of the institution’s unimpaired capital and surplus. Additional amounts may be loaned, not in excess of 10% of unimpaired capital and surplus, if such loans or extensions of credit are secured by readily-marketable collateral. The Bank is in compliance with applicable loans to one borrower limitations.

Nontraditional Mortgage Products. The federal banking agencies have issued guidance for institutions that originate or service nontraditional or alternative mortgage products, defined to include all residential mortgage loan products that allow borrowers to defer repayment on principal or interest, such as interest-only mortgages and payment option adjustable-rate mortgages. A portion of the Bank’s adjustable-rate residential mortgage loans represent interest-only residential mortgage loans. None of these loans permit negative amortization or optional payment amounts.

Recognizing that alternative mortgage products expose institutions to increased risks as compared to traditional loans where payments amortize or reduce the principal amount, the guidance requires increased scrutiny for alternative mortgage products. Institutions that originate or service alternative mortgages should have: (i) strong risk management practices that include maintenance of capital levels and allowance for loan losses commensurate with the risk; (ii) prudent lending policies and underwriting standards that address a borrower’s repayment capacity; and (iii) programs and practices designed to ensure that consumers receive clear and balanced information to assist in making informed decisions about mortgage products. The guidance also recommends heightened controls and safeguards when an institution combines an alternative mortgage product with features that compound risk, such as a simultaneous second-lien or the use of reduced documentation to evaluate a loan application. The Bank complies with the guidance on non-traditional mortgage products as it is interpreted and applied by the OCC.

Liquidity. The Bank maintains sufficient liquidity to ensure its safe and sound operation, in accordance with applicable OCC regulations.

Assessments. The OCC charges assessments to recover the cost of examining national banks and their affiliates. These assessments are based on three components: (i) the size of the institution on which the basic assessment is based; (ii) the institution’s supervisory condition, which results in an additional assessment based on a percentage of the basic assessment for any savings institution with a composite rating of 3, 4 or 5 in its most recent safety and soundness examination; and (iii) the complexity of the institution’s operations, which results in an additional assessment based on a percentage of the basic assessment for any savings institution that managed over $1 billion in trust assets, serviced for others loans aggregating more than $1 billion, or had certain off-balance-sheet assets aggregating more than $1 billion.

Branching. Under OCC branching regulations, the Bank is generally authorized to open branches nationwide. The Bank is required to submit an application to the OCC and publish a public notice prior to establishing a new branch or relocating an existing branch. OCC authority preempts any state law purporting to regulate branching by national banks.

Anti-Money Laundering and Customer Identification. The Bank is subject to OCC and Financial Crimes Enforcement Network regulations implementing the Bank Secrecy Act, as amended by the USA PATRIOT Act. The USA PATRIOT Act gives the federal government powers to address terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing and broadened anti-money laundering requirements. By way of amendments to the Bank Secrecy Act, Title III of the USA PATRIOT Act takes measures intended to encourage information sharing among banks, regulatory agencies and law enforcement bodies. Further, certain provisions of Title III impose affirmative reporting obligations on a broad range of financial institutions, including national banks like the Bank.

8

Federal Home Loan Bank System. The Bank is a member of the Federal Home Loan Bank (“FHLB”) system, which consists of twelve regional FHLBs, each subject to supervision and regulation by the Federal Housing Finance Agency. The FHLB system provides a central credit facility primarily for member institutions as well as other entities involved in home mortgage lending. It is funded primarily from proceeds derived from the sale of consolidated obligations of the FHLBs. It makes loans or advances to members in accordance with policies and procedures, including collateral requirements, established by the respective boards of directors of the FHLBs. These policies and procedures are subject to the regulation and oversight of the Federal Housing Finance Agency, which has also established standards of community or investment service that members must meet to maintain access to long-term advances.

The Bank, as a member of the FHLB of Boston, is currently required to purchase and hold shares of capital stock in the FHLB of Boston in an amount equal to 0.35% of the Bank’s Membership Stock Investment Base plus an Activity Based Stock Investment Requirement. The Activity Based Stock Investment Requirement is equal to 3.0% of any outstanding principal for overnight advances, 4.0% of any outstanding principal for term advances with an original term of two days to three months and 4.5% of any outstanding principal for term advances with an original term greater than three months. The Bank is in compliance with these requirements. As a result of its acquisition of the Bank of Smithtown in 2010, the Bank also holds shares of capital stock in the FHLB of New York. The Bank, as a member of the Federal Reserve Bank system, is currently required to purchase and hold shares of capital stock in the Federal Reserve Bank of New York (the “FRB-NY”) in an amount equal to 6% of its capital and surplus.

Reserve Requirements. FRB reserve regulations require banks to maintain reserves against their transaction accounts (primarily negotiable order of withdrawal and demand deposit accounts). Institutions must maintain a reserve of 3% against aggregate transaction account balances between $15.2 million and $110.2 million (subject to adjustment by the FRB) plus a reserve of 10% (subject to adjustment by the FRB within specific limits) against that portion of total transaction account balances in excess of $110.2 million. The first $15.2 million of otherwise reservable balances is exempt from the reserve requirements. The Bank is in compliance with the foregoing requirements. The required reserves must be maintained in the form of vault cash, or an interest-bearing account at a Federal Reserve Bank, or a pass-through account as defined by the FRB.

Market Area and Competition

People’s United’s primary market areas are New England and southeastern New York, with Connecticut, Massachusetts, New York and Vermont having the largest concentration of its loans, deposits and branches. At December 31, 2015, 27%, 20%, 17% and 6% of the Company’s loans by outstanding principal amount were to customers located within Connecticut, New York, Massachusetts and Vermont, respectively. Loans to customers located in the New England states as a group represented 59% of total loans at December 31, 2015. However, substantially the entire equipment financing portfolio (97% at December 31, 2015) was to customers located outside of New England. At December 31, 2015, 34% of the equipment financing portfolio was to customers located in Texas, California, Louisiana and New York and no other state exposure was greater than 5%.

As of June 30, 2015, People’s United had: (i) the largest market share of deposits in Fairfield County, Connecticut; (ii) the second largest market share of deposits in the state of Connecticut; and (iii) the largest market share of deposits in the state of Vermont. People’s United competes for deposits, loans and financial services with commercial banks, savings institutions, commercial and consumer finance companies, mortgage banking companies, insurance companies, credit unions and a variety of other institutional lenders and securities firms.

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As People’s United’s predominant market, Connecticut is one of the most attractive banking markets in the United States. With a total population of approximately 3.6 million and a median household income of $70,077, Connecticut ranks fourth in the United States, well above the U.S. median household income of $55,551, according to U.S. Census data and SNL Financial. The median household income in New York, which has the Company’s second highest number of branches, was $60,445, according to U.S. Census data and SNL Financial. The median household income in Massachusetts and Vermont, which have the Company’s third and fourth highest number of branches, was $69,807 and $58,048, respectively, according to U.S. Census data and SNL Financial.

The principal basis of competition for deposits is the interest rate paid for those deposits and related fees, the convenience of access to services through traditional and non-traditional delivery alternatives, and the quality of services to customers. The principal basis of competition for loans is through the interest rates and loan fees charged and the development of relationships based on the efficiency, convenience and quality of services provided to borrowers. Further competition has been created through the rapid acceleration of commerce conducted over the Internet. This has enabled institutions, including People’s United, to compete in markets outside their traditional geographic boundaries.

Personnel

As of December 31, 2015, People’s United had 4,652 full-time and 487 part-time employees.

Access to Information

As a public company, People’s United is subject to the informational requirements of the Exchange Act, as amended and, in accordance therewith, files reports, proxy and information statements and other information with the SEC. Such reports, proxy and information statements and other information can be inspected and copied at prescribed rates at the public reference room maintained by the SEC at 100 F Street N.E., Washington, D.C. 20549 and are available on the SEC’s EDGAR database on the internet at www.sec.gov. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. People’s United’s common stock is listed on the NASDAQ Global Select Market under the symbol “PBCT”.

Copies of many of these reports are also available through People’s United’s website at www.peoples.com.

People’s United currently provides website access to the following reports:

Form 10-K (most recent filing and any related amendments)

Form 10-Q (four most recent filings and any related amendments)

Form 8-K (all filings in most recent 12 months and any related amendments)

Annual Report to Shareholders (two most recent years)

Proxy Statement for Annual Meeting of Shareholders (two most recent years)

XBRL Interactive Data (most recent 12 months)

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Item 1A. Risk Factors

Changes in Interest Rates Could Adversely Affect Our Results of Operations and Financial Condition

People’s United makes most of its earnings based on the difference between interest it earns compared to interest it pays. This difference is called the “interest spread.” People’s United earns interest on loans and to a much lesser extent on securities and short-term investments. These are called “interest-earning assets.” People’s United pays interest on some forms of deposits and on funds it borrows from other sources. These are called “interest-bearing liabilities.”

People’s United’s interest spread can change depending on when interest rates earned on interest-earning assets change, compared to when interest rates paid on interest-bearing liabilities change. Some rate changes occur while these assets or liabilities are still on People’s United’s books. Other rate changes occur when these assets or liabilities mature and are replaced by new interest-earning assets or interest-bearing liabilities at different rates. It may be difficult to replace interest-earning assets quickly, since customers may not want to borrow money when interest rates are high, or People’s United may not be able to make loans that meet its lending standards. People’s United interest spread may also change based on the mix of interest-earning assets and interest-bearing liabilities.

People’s United’s interest spread may be lower if the timing of interest rate changes is different for its interest-earning assets compared to its interest-bearing liabilities. For example, if interest rates go down, People’s United could earn less on some of its interest-earning assets while it is still obligated to pay higher rates on some of its interest-bearing liabilities. On the other hand, if interest rates go up, People’s United might have to pay more on some of its interest-bearing liabilities while it continues to receive lower rates on some of its interest-earning assets.

People’s United manages this risk using many different techniques. If unsuccessful in managing this risk, People’s United may be less profitable.

Changes in Our Asset Quality Could Adversely Affect Our Results of Operations and Financial Condition

Asset quality measures the performance of a borrower in repaying a loan, with interest, on time. While we believe we have benefited from relatively stable asset quality, there are elements of our loan portfolio that inherently present greater credit risk, such as interest-only and stated income residential mortgage loans, home equity loans and lines with incomplete first lien data and commercial real estate loans. Each of these portfolio risk elements, where potentially material in the context of our overall loan portfolio, are discussed in greater detail within Management’s Discussion & Analysis—Asset Quality beginning on page 55. While the Company believes that it manages asset quality through prudent underwriting practices and collection operations, it is possible that our asset quality could deteriorate, depending upon economic conditions and other factors.

The Success of Our Stop & Shop Branches Depends on the Success of the Stop & Shop Brand

One element of our strategy is to focus on increasing deposits by providing a wide range of convenient services to our customers. An integral component of this strategy is the Bank’s supermarket banking initiative, pursuant to which, as of December 31, 2015, the Bank has established 150 full-service Stop & Shop branches throughout Connecticut and southeastern New York, most of which are in close proximity to our traditional branches, which provide customers with the convenience of seven-day-a-week banking. At December 31, 2015, 38% of the Bank’s branches were located in Stop & Shop supermarkets and 15% of our total deposits at that date were held in Stop & Shop branches.

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The Bank currently has exclusive branching rights in Stop & Shop supermarkets in the state of Connecticut and certain counties in the state of New York, in the form of licensing agreements between The Stop & Shop Supermarket Company and the Bank, which provides for the leasing of space to the Bank within Stop & Shop supermarkets for branch use. The Bank has the exclusive right to branch in these supermarkets until 2027, provided that the Bank does not default on its obligations under the licensing agreement.

Under the terms of the licensing agreements, the Bank has the obligation to open branches in new Stop & Shop locations, even if Stop & Shop’s market share declines or the value of the Stop & Shop brand is diminished. The licensing agreements do not stipulate the number of branch openings per year but, rather, apply only to those new Stop & Shop locations that meet or exceed specified thresholds as to size (square footage) and/or customer traffic. Based on our experience, we would expect the application of these thresholds to result in the opening of approximately 3-5 new branches per year in Stop & Shop locations.

Stop & Shop is a leading grocery store in Connecticut. The success of the Bank’s supermarket branches is dependent, in part, on the success of the Stop & Shop supermarkets in which they are located. A drop in Stop & Shop’s market share, a decrease in the number of Stop & Shop locations or customers, or a decline in the overall quality of Stop & Shop supermarkets could result in decreased business for the Stop & Shop branches, in the form of fewer loan originations, lower deposit generation and fewer overall branch transactions, and could influence market perception of the Bank’s Stop & Shop supermarket branches as convenient banking locations.

We Depend on Our Executive Officers and Key Personnel to Continue Implementing Our Long-Term Business Strategy and Could Be Harmed by the Loss of Their Services

We believe that our continued growth and future success will depend in large part upon the skills of our management team. The competition for qualified personnel in the financial services industry can be intense, and the loss of our key personnel or an inability to continue to attract, retain and motivate key personnel could adversely affect our business.

Our Business Is Affected by the International, National, Regional and Local Economies in Which We Operate

Changes in international, national, regional and local economic conditions affect our business. If economic conditions change significantly or quickly, our business operations could suffer, and we could become weaker financially as a result.

As a result of the financial crisis that existed for much of the period from 2008 through 2012, the housing and real estate markets, as well as the broader economy, experienced declines, both nationally and locally. Housing market conditions in the New England region, where much of our lending activity occurs, were adversely impacted, leading to a reduced level of sales, increasing inventories of houses on the market, declining house prices and an increase in the length of time houses remained on the market. No assurance can be given that these conditions will not be repeated or that such conditions will not result in a decrease in our interest income, an increase in our non-performing loans, an increase in our provision for loan losses or an adverse impact on our loan losses.

Significant volatility in the financial and capital markets during this time led to credit and liquidity concerns, a recessionary economic environment and, in turn, weakness within the commercial sector. Our loan portfolio is not immune to potential negative consequences arising as a result of general economic weakness and, in particular, a prolonged downturn in the housing market on a national scale. Decreases in real estate values could adversely affect the value of property used as collateral for loans. In addition, adverse changes in the economy could have a negative effect on the ability of borrowers to make scheduled loan payments, which would likely have an adverse impact on earnings. Further, an increase in loan delinquencies may serve to decrease interest income and adversely impact loan loss experience, resulting in an increased provision and allowance for loan losses.

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International economic uncertainty continues to have an impact on the U.S. financial markets, potentially suppressing stock prices and adding to volatility. Our foreign country exposure, which is defined as the aggregation of exposure maintained with financial institutions, companies or individuals in a given country outside of the United States, is minimal and indirect, with the majority of such exposure comprised of corporate debt securities. Our sovereign credit exposure is comprised of an immaterial amount of government bonds issued by a single non-European sovereign.

The Geographic Concentration of Our Loan Portfolio Could Make Us Vulnerable to a Downturn in the Economies in Which We Operate

At December 31, 2015, 27%, 20% and 17% of the Company’s loans by outstanding principal amount were to customers located within Connecticut, New York and Massachusetts, respectively. Loans to people and businesses located in the New England states as a group represented 59% of total loans at that date. How well our business performs depends very much on the health of these regional and local economies. We could experience losses in our real estate-related loan portfolios if the prices for housing and other kinds of real estate decreased significantly in New England or southeastern New York.

If the economic environment deteriorates, or negative trends emerge with respect to the financial markets, the New England and southeastern New York economies could suffer more than the national economy. This would be especially likely in Fairfield County, Connecticut (where the Company is headquartered) as well as the suburban communities of New York City and Boston as a result of the significant number of people living in these areas who also work in the financial services industry.

In addition, our ability to continue to originate real estate loans may be impaired by adverse changes in the local and regional economic conditions in these real estate markets. Decreases in real estate values could adversely affect the value of property used as collateral for our loans. Adverse changes in the economy may also have a negative effect on the ability of our borrowers to make timely repayments of their loans, which would have an adverse impact on our earnings. In addition, if poor economic conditions result in decreased demand for real estate loans, our profits may decrease because our alternative investments may earn less income for us than real estate loans.

Our equipment financing business, which operates nationally, could be negatively affected by adverse changes in the national economy, even if those changes have no significant effect on the local and regional economies in which our other businesses operate.

No assurance can be given that such conditions will not occur or that such conditions will not result in a decrease in our interest income, an increase in our non-performing loans, an increase in our provision for loan losses or an adverse impact on our loan losses.

In Response to Competitive Pressures, Our Costs Could Increase if We Were Required to Increase Our Service and Convenience Levels or Our Margins Could Decrease if We Were Required to Increase Deposit Rates or Lower Interest Rates on Loans

People’s United faces significant competition for deposits and loans. In deciding where to deposit their money, many people look first at the interest rate they will earn. They also might consider whether a bank offers other kinds of services they might need and, if they have been a customer of a bank before, what their experience was like. People also like convenience, so the number of offices and banking hours may be important. Some people also prefer the availability of on-line services.

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People’s United competes with other banks, credit unions, brokerage firms and money market funds for deposits. Some people may decide to buy bonds or similar kinds of investments issued by companies or by federal, state and local governments and agencies, instead of opening a deposit account.

In making decisions about loans, many people consider the interest rate they will have to pay. They also consider any extra fees they might have to pay in order to get the loan. Many business loans are more complicated because there may not be a standard type of loan that meets all of the customer’s needs. Business borrowers consider many different factors that are not all financial in nature, including the type and amount of security the lender wants and other terms of the loan that do not involve the interest rate.

People’s United competes with other banks, credit unions, credit card issuers, finance companies, mortgage lenders and mortgage brokers for loans. Insurance companies also compete with People’s United for some types of commercial loans.

Several of People’s United’s competitors have branches in the same market area as it does, some of which are much larger than it is. The New England region, including Connecticut, which is People’s United’s predominant market, and specifically Fairfield County, where People’s United is headquartered, is an attractive banking market. As locally-based banks continue to be acquired by large regional and national companies, there are not as many bank competitors in our market as there used to be, but the remaining ones are usually larger and have more resources than the banks they acquired.

People’s United also has competition from outside its own market area. A bank that does not have any branches in our primary markets can still have customers there by providing banking services on-line. It costs money to set up and maintain a branch system. Banks that do not spend as much money as People’s United does on branches might be more profitable than it is, even if they pay higher interest on deposits and charge lower interest on loans.

Changes in Federal and State Regulation Could Adversely Affect Our Results of Operations and Financial Condition

The banking business is heavily regulated by the federal and state governments. Banking laws and rules are for the most part intended to protect depositors, not stockholders.

Banking laws and rules can change at any time. The government agencies responsible for supervising People’s United’s businesses can also change the way they interpret these laws and rules, even if the rules themselves do not change. We need to make sure that our business activities comply with any changes in these rules or the interpretation of the rules. We might be less profitable if we have to change the way we conduct business in order to comply. Our business might suffer in other ways as well.

Changes in state and federal tax laws or the accounting standards we are required to follow can make our business less profitable. Changes in the government’s economic and monetary policies may hurt our ability to compete for deposits and loans. Changes in these policies can also make it more expensive for us to do business.

The government agencies responsible for supervising our business can take drastic action if they think we are not conducting business safely or are too weak financially. They can force People’s United to hold additional capital, pay higher deposit insurance premiums, stop paying dividends, stop making certain kinds of loans or stop offering certain kinds of deposits. If the agencies took any of these steps or other similar steps, it would probably make our business less profitable.

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Enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “DFA”) has resulted in significant changes in the financial regulatory landscape, many of which affect us. Among the more significant provisions of the DFA, as well as their actual or anticipated impact, if quantifiable, are:

• Changes to the regulatory landscape, including:

(i) creation of the CFPB, which is empowered to promulgate new consumer protection regulations and revise existing regulations in many areas of consumer protection, and exercise exclusive authority over our consumer compliance examinations; and

(ii) restrictions on the ability of federal bank regulatory authorities to preempt the application of state consumer protection laws and regulations.

• Limitations on the amount of interchange fees that an issuer of debit cards may charge or receive:

• The DFA limits the amount of interchange fee that an issuer of debit cards may charge or receive to an amount that is “reasonable and proportional” to the cost of the transaction. The DFA further provides that a debit card issuer may not restrict the number of payment card networks on which a debit card transaction may be processed to a single network or limit the ability of a merchant to direct the routing of debit card payments for processing.

• Changes impacting the financial products and services we offer to our customers:

• All federal prohibitions on the ability of financial institutions to pay interest on demand deposit accounts were repealed as part of the DFA. As of December 31, 2015, the Bank’s non-interest bearing deposits totaled $6.2 billion, or 22% of total deposits. The Company’s interest expense may increase and net interest margin may decrease if it begins to offer higher rates of interest than are currently offered on demand deposits.

• Stricter capital requirements for bank holding companies:

• The DFA imposes stringent capital requirements on bank holding companies by, among other things, imposing leverage ratios on holding companies and prohibiting the inclusion of new trust preferred issuances in Tier I capital. The DFA also increases regulation of derivatives and hedging transactions, which could limit the ability of People’s United to enter into, or increase the costs associated with, interest rate and other hedging transactions.

• Mortgage rules promulgated by the CFPB:

• The CFPB has issued a series of final rules to implement provisions in the DFA related to mortgage origination and mortgage servicing. These rules, which went into effect in January 2014 and which may increase the cost of originating and servicing residential mortgage loans, include:

• A rule to implement the requirement that creditors make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling and establish certain protections from liability under this requirement for “qualified mortgages”; and

• A rule addressing mortgage servicers’ obligations to: correct errors asserted by mortgage loan borrowers; provide certain information requested by such borrowers; and provide protections to such borrowers in connection with force-placed insurance. Additionally, this final rule addresses servicers’ obligations to: provide information about mortgage loss mitigation options to delinquent borrowers; establish policies and procedures for providing delinquent borrowers with continuity of contact with servicer personnel capable of performing certain functions; and evaluate borrowers’ applications for available loss mitigation options.

15

While it is difficult to fully quantify the increase in our regulatory compliance burden, we do believe that costs associated with regulatory compliance, including the need to hire additional compliance personnel, will continue to increase. Because certain other provisions of the DFA still require regulatory rulemaking, it is not clear how those new regulations will affect People’s United.

If People’s United’s Allowance for Loan Losses Is Not Sufficient to Cover Actual Loan Losses, Our Earnings Would Decrease

People’s United is exposed to the risk that customers will not be able to repay their loans. This risk is inherent in the lending business. There is also the risk that the customer’s collateral will not be sufficient to cover the balance of their loan, as underlying collateral values fluctuate with market changes. People’s United records an allowance for loan losses to cover probable losses inherent in the existing loan portfolio. The allowance for loan losses is established through provisions for loan losses charged to income. Losses on loans, including impaired loans, are charged to the allowance for loan losses when all or a portion of a loan is deemed to be uncollectible. Recoveries of loans previously charged off are credited to the allowance for loan losses when realized.

People’s United maintains the allowance for loan losses at a level that is deemed to be appropriate to absorb probable losses inherent in the respective loan portfolios, based on a quarterly evaluation of a variety of factors. These factors include, but are not limited to: People’s United’s historical loan loss experience and recent trends in that experience; risk ratings assigned by lending personnel to commercial real estate loans, commercial and industrial loans and equipment financing loans, and the results of ongoing reviews of those ratings by People’s United’s independent loan review function; an evaluation of delinquent and non-performing loans and related collateral values; the probability of loss in view of geographic and industry concentrations and other portfolio risk characteristics; the present financial condition of borrowers; and current economic conditions.

While People’s United seeks to use the best available information to make these evaluations and, at December 31, 2015, believed that the allowance for loan losses was appropriate to cover probable losses inherent in the existing loan portfolio, it is possible that borrower defaults could exceed the current estimates for loan losses, which would reduce earnings. In addition, future increases to the allowance for loan losses may be necessary based on changes in economic conditions, results of regulatory examinations, further information obtained regarding known problem loans, increasing charge-offs of existing problem loans, or the identification of additional problem loans and other factors, which would also reduce earnings. See Note 1 to the Consolidated Financial Statements for additional information concerning People’s United’s allowance for loan losses.

Our Goodwill May be Determined to be Impaired at a Future Date Depending on the Results of Periodic Impairment Evaluations

People’s United evaluates goodwill for impairment on an annual basis (or more frequently, if necessary). According to applicable accounting requirements, acceptable valuation methods include present-value measurements based on multiples of earnings or revenues, or similar performance measures. If the quoted market price for People’s United common stock were to decline significantly, or if it was determined that the carrying amount of our goodwill exceeded its implied fair value, we would be required to write down the asset recorded for goodwill as reflected in the Consolidated Statements of Condition. This, in turn, would result in a charge to earnings and, thus, a reduction in stockholders’ equity. See Notes 1 and 5 to the Consolidated Financial Statements for additional information concerning People’s United’s goodwill and the required impairment test.

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People’s United May Fail To Successfully Integrate Acquired Companies and Realize All of the Anticipated Benefits of an Acquisition

The ultimate success of an acquisition will depend, in part, on the ability of People’s United to realize the anticipated benefits from combining the businesses of People’s United with those of an acquired company. If People’s United is not able to successfully combine the businesses, the anticipated benefits of a merger may not be realized fully or at all or may take longer to realize than expected.

A Failure In or Breach Of Our Operational or Security Systems or Infrastructure, or Those of Our Third Party Vendors and Other Service Providers, Including as a Result of Cyber-Attacks, Could Disrupt Our Business, Result in the Disclosure or Misuse of Confidential or Proprietary Information, Damage Our Reputation, Increase Our Costs and Cause Losses

We depend upon our ability to process, record and monitor a large number of customer transactions on a continuous basis. As customer, public and regulatory expectations regarding operational and information security have increased, our operational systems and infrastructure must continue to be safeguarded and monitored for potential failures, disruptions and breakdowns.

Information security risks for financial institutions, such as ours, have generally increased in recent years in part because of the proliferation of new technologies, the use of the internet and telecommunications technologies to conduct financial transactions and the increased sophistication and activities of organized crime, hackers, terrorists, activists and other external parties. As noted above, our operations rely on the secure processing, transmission and storage of confidential information in our computer systems and networks.

Our business operations rely on our digital technologies, computer and email systems, software and networks to conduct their operations. In addition, to access our products and services, our customers may use electronic devices that are beyond our control systems. Although we have information security procedures and controls in place, our technologies, systems, networks and our customers’ devices may become the target of cyber-attacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of our or our customers’ confidential, proprietary and other information, or otherwise disrupt our or our customers’ or other third parties’ business operations.

Third parties with whom we do business or that facilitate our business activities, including exchanges, clearing houses, financial intermediaries or vendors that provide services or security solutions for our operations, could also be sources of operational and information security risk to us, including from breakdowns or failures of their own systems or capacity constraints.

Although to date we have not experienced any material losses relating to cyber-attacks or other information security breaches, there can be no assurance that we will not suffer such losses in the future. Our risk and exposure to these matters remains heightened because of, among other things, the evolving nature of these threats, the size and scale of People’s United, our plans to continue to implement our internet banking and mobile banking channel strategies and develop additional remote connectivity solutions to serve our customers when and how they want to be served, our expanded geographic footprint, the outsourcing of some of our business operations and the continued uncertain global economic environment. As a result, cybersecurity and the continued development and enhancement of our controls, processes and practices designed to protect our systems, computers, software, data and networks from attack, damage or unauthorized access remain a focus for us. As threats continue to evolve, we may be required to expend additional resources to continue to modify or enhance our protective measures or to investigate and remediate information security vulnerabilities.

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Disruptions or failures in the physical infrastructure or operating systems that support our business and customers, or cyber-attacks or security breaches of the networks, systems or devices that our customers use to access our products and services could result in customer attrition, regulatory fines, penalties or intervention, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs, any of which could materially adversely affect our results of operations or financial condition.

Availability of First Lien Data With Respect to Our Home Equity Loans and Lines of Credit Could Delay Our Response to Any Deterioration in the Borrower’s Credit

We do not currently have statistics for our entire portfolio of home equity loans and lines of credit with respect to first liens serviced by third parties that have priority over our junior liens, as we did not historically capture that data on our loan servicing systems. As a result, we may therefore be unaware that the loan secured by the first lien is not performing, which could delay our response to an apparent deterioration in the borrower’s creditworthiness. As of December 31, 2015, full and complete first lien position data was not readily available for 38% of the home equity portfolio which, in turn, represented 3% of our overall loan portfolio at that date.

We are actively working with a third-party vendor to obtain the missing first lien information and have, in certain cases, obtained the data through information reported to credit bureaus when the borrower defaults. This data collection effort, however, can be more difficult in cases where more than one mortgage is reported in a borrower’s credit report and/or there is not a corresponding property address associated with a reported mortgage, in which case we are often unable to associate a specific first lien with our junior lien. Please see the discussion in Management’s Discussion and Analysis—Asset Quality—Portfolio Risk Elements—Home Equity Lending beginning on page 57 for more detail, including steps we are taking to otherwise address this issue.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

People’s United’s corporate headquarters is located in Bridgeport, Connecticut. The headquarters building had a net book value of $57 million at December 31, 2015 and People’s United occupies 87% of the building; all other available office space is leased to an unrelated party. People’s United delivers its financial services through a network of 396 branches located throughout Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire and Maine. People’s United’s branch network is primarily concentrated in Connecticut, where it has 154 offices (including 84 located in Stop & Shop supermarkets). People’s United also has 101 branches in southeastern New York (including 66 located in Stop & Shop supermarkets), 48 branches in Massachusetts, 40 branches in Vermont, 27 branches in New Hampshire and 26 branches in Maine. People’s United owns 105 of its branches, which had an aggregate net book value of $52 million at December 31, 2015. People’s United’s remaining banking operations are conducted in leased locations. Information regarding People’s United’s operating leases for office space and related rent expense appears in Note 19 to the Consolidated Financial Statements.

Item 3. Legal Proceedings

The information required by this item appears in Note 19 to the Consolidated Financial Statements.

Item 4. Mine Safety Disclosures

None.

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Part II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

The common stock of People’s United is listed on the NASDAQ Global Select Market under the symbol “PBCT”. On February 17, 2016, the closing price of People’s United common stock was $14.68. As of that date, there were approximately 18,100 record holders of People’s United common stock.

Five-Year Performance Comparison

The following graph compares total shareholder return on People’s United common stock over the last five fiscal years with: (i) the Standard & Poor’s 500 Stock Index (the “S & P 500 Stock Index”); (ii) the Russell Midcap Index; and (iii) the SNL Mid Cap U.S. Bank & Thrift Index (the “SNL Mid Cap Index”). Index values are as of December 31 of the indicated year.

The graph assumes $100 invested on December 31, 2010 in each of People’s United’s common stock, the S&P 500 Stock Index, the Russell Midcap Index and the SNL Mid Cap Index. The graph also assumes reinvestment of all dividends.

The Russell Midcap Index is a market-capitalization weighted index comprised of 800 publicly-traded companies which are among the 1,000 largest U.S. companies (by market capitalization) but not among the 200 largest such companies. People’s United is included as a component of the Russell Midcap Index. The SNL Mid Cap Index is an index prepared by SNL Securities comprised of 85 financial institutions (including People’s United) located throughout the United States.

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Issuer Purchases of Equity Securities

The following table provides information with respect to purchases made by People’s United of its common stock during the three months ended December 31, 2015:

Period	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs		Maximum number of shares that may yet be purchased under the plans or programs
October 1—31, 2015:
Tendered by employees (1)		1,464	$	15.90		—		—
November 1—30, 2015:
Tendered by employees (1)		3,461	$	16.43		—		—
December 1—31, 2015:
Tendered by employees (1)		434	$	16.78		—		—
Total:
Tendered by employees (1)		5,359	$	16.32		—		—

(1) All shares listed were tendered by employees of People’s United in satisfaction of their related minimum tax withholding obligations upon the vesting of restricted stock awards granted in prior periods and/or in payment of the exercise price and satisfaction of their related minimum tax withholding obligations upon the exercise of stock options granted in prior periods. The average price paid per share is equal to the average of the high and low trading price of People’s United’s common stock on The NASDAQ Stock Market on the vesting or exercise date or, if no trades took place on that date, the most recent day for which trading data was available. There is no limit on the number of shares that may be tendered by employees of People’s United in the future for these purposes. Shares acquired in payment of the option exercise price or in satisfaction of minimum tax withholding obligations are not eligible for reissuance in connection with any subsequent grants made pursuant to equity compensation plans maintained by People’s United. All shares acquired in this manner are retired by People’s United, resuming the status of authorized but unissued shares of People’s United’s common stock.

Additional information required by this item is included in Part III, Item 12 of this report, and Notes 12 and 24 to the Consolidated Financial Statements.

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Item 6. Selected Financial Data

As of and for the years ended December 31 (dollars in millions, except per share data)	2015			2014			2013			2012			2011
Earnings Data:
Net interest income (fully taxable equivalent)	$	957.3		$	931.1		$	905.8		$	940.4		$	921.2
Net interest income		932.1			911.9			888.6			928.7			913.4
Provision for loan losses		33.4			40.6			43.7			49.2			63.7
Non-interest income		352.4			350.8			341.7			320.4			314.3
Non-interest expense (1)		860.6			841.5			839.0			830.6			871.9
Operating non-interest expense (1)		847.7			832.0			826.3			817.9			815.1
Income before income tax expense		390.5			380.6			347.6			369.3			292.1
Net income		260.1			251.7			232.4			245.3			192.4
Operating earnings (1)		262.5			244.5			241.1			253.9			230.7
Selected Statistical Data:
Net interest margin		2.88	%		3.09	%		3.31	%		3.86	%		4.10	%
Return on average assets		0.71			0.75			0.75			0.87			0.74
Operating return on average assets (1)		0.71			0.72			0.78			0.90			0.89
Return on average tangible assets		0.75			0.80			0.81			0.95			0.80
Return on average stockholders’ equity		5.5			5.4			4.9			4.7			3.6
Return on average tangible stockholders’ equity		10.0			10.0			8.9			8.2			6.0
Operating return on average tangible stockholders’ equity (1)		10.1			9.7			9.2			8.5			7.2
Efficiency ratio (1)		61.5			62.1			62.3			61.2			62.6
Financial Condition Data:
Total assets	$	38,877		$	35,997		$	33,214		$	30,324		$	27,558
Loans		28,411			26,592			24,390			21,737			20,385
Securities		6,449			5,012			5,033			4,669			2,931
Short-term investments (2)		380			769			124			131			411
Allowance for loan losses		211			198			188			188			183
Goodwill and other acquisition-related intangible assets		2,088			2,103			2,127			2,154			2,174
Deposits		28,417			26,138			22,557			21,751			20,816
Borrowings		4,307			3,692			5,057			2,386			857
Notes and debentures		1,039			1,034			639			659			160
Stockholders’ equity		4,732			4,633			4,568			5,039			5,215
Non-performing assets (3)		182			224			248			290			337
Ratios:
Net loan charge-offs to average total loans		0.08	%		0.12	%		0.19	%		0.21	%		0.28	%
Non-performing assets to originated loans, real estate owned and repossessed assets (3)		0.66			0.88			1.08			1.48			2.00
Originated allowance for loan losses to:
Originated loans (3)		0.73			0.74			0.78			0.91			1.05
Originated non-performing loans (3)		127.3			95.5			81.9			70.3			59.7
Average stockholders’ equity to average total assets		12.5			13.5			15.3			18.4			20.3
Stockholders’ equity to total assets		12.2			12.9			13.8			16.6			18.9
Tangible stockholders’ equity to tangible assets		7.2			7.5			7.9			10.2			12.0
Total risk-based capital (4)		12.6			13.0			12.4			13.1			14.0
Common Share Data:
Basic and diluted earnings per share	$	0.86		$	0.84		$	0.74		$	0.72		$	0.55
Operating earnings per share (1)		0.87			0.82			0.77			0.75			0.66
Dividends paid per share		0.6675			0.6575			0.6475			0.6375			0.6275
Dividend payout ratio		77.3	%		78.2	%		88.1	%		88.8	%		114.9	%
Operating dividend payout ratio (1)		76.6			80.6			84.9			85.8			95.8
Book value per share (end of period)	$	15.62		$	15.44		$	15.28		$	15.21		$	14.96
Tangible book value per share (end of period) (1)		8.73			8.43			8.17			8.71			8.72
Stock price:
High		16.95			15.70			15.27			13.79			14.49
Low		13.97			13.61			11.82			11.20			10.50
Close (end of period)		16.15			15.18			15.12			12.09			12.85

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

(2) Includes securities purchased under agreements to resell.

(3) Excludes acquired loans. See Asset Quality.

(4) Total risk-based capital ratios presented are for People’s United Bank. See Regulatory Capital Requirements.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Periodic and other filings made by People’s United with the SEC pursuant to the Exchange Act may, from time to time, contain information and statements that are forward-looking in nature. Such filings include the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and may include other forms such as proxy statements. Other written or oral statements made by People’s United or its representatives from time to time may also contain forward-looking statements.

In general, forward-looking statements usually use words such as “expect,” “anticipate,” “believe,” “should,” and similar expressions, and include all statements about People’s United’s operating results or financial position for future periods. Forward-looking statements represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance.

All forward-looking statements are subject to risks and uncertainties that could cause People’s United’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 include, but are not limited to: (1) changes in general, international, national or regional economic conditions; (2) changes in interest rates; (3) changes in loan default and charge-off rates; (4) changes in deposit levels; (5) changes in levels of income and expense in non-interest income and expense related activities; (6) changes in accounting and regulatory guidance applicable to banks; (7) price levels and conditions in the public securities markets generally; (8) competition and its effect on pricing, spending, third-party relationships and revenues; and (9) changes in regulation resulting from or relating to financial reform legislation.

All forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Consequently, no forward-looking statement can be guaranteed. People’s United does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

General

People’s United is a bank holding company and a financial holding company, and the Bank is a national banking association. Prior to February 23, 2015, People’s United was a savings and loan holding company within the meaning of the Home Owners’ Loan Act and the Bank was a federally-chartered savings bank. These changes primarily affect the manner in which both People’s United and the Bank are regulated, and did not have a material effect on either People’s United’s or the Bank’s financial condition or results of operations.

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The principal business of People’s United is to provide, through the Bank and its subsidiaries, commercial banking, retail banking and wealth management services to individual, corporate and municipal customers. The Bank, which is headquartered in Bridgeport, Connecticut, had $38.5 billion in total assets as of December 31, 2015. Its deposit accounts are insured up to applicable limits by the FDIC under the DIF. The Bank is subject to regulation, examination, supervision and reporting requirements by the OCC, as its primary regulator, and by the FDIC as the deposit insurer. In addition, the CFPB has responsibility for supervising the Bank’s compliance with designated consumer financial laws.

People’s United’s results of operations are largely dependent upon revenues generated through net interest income and fee-based revenues and, to a much lesser extent, other forms of non-interest income such as gains on asset sales. Sources for these revenues are diversified across People’s United’s three primary operating segments that represent its core businesses: Commercial Banking; Retail Banking; and Wealth Management. People’s United’s results of operations are also significantly affected by the provision for loan losses and the level of non-interest expense. In addition, People’s United’s results of operations may also be affected by general and local economic conditions, changes in market interest rates, government policies and actions of regulatory authorities.

Critical Accounting Policies

In preparing the consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from management’s current estimates, as a result of changing conditions and future events.

Several accounting estimates are particularly critical and are susceptible to significant near-term change, including the allowance for loan losses and asset impairment judgments, such as the recoverability of goodwill and other intangible assets.

The judgments used by management in applying critical accounting policies may be affected by economic conditions, which may result in changes to future financial results. For example, subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan losses in future periods, and the inability to collect outstanding principal may result in increased loan losses. People’s United’s significant accounting policies and critical estimates are summarized in Note 1 to the Consolidated Financial Statements.

The Financial Accounting Standards Board (the “FASB”) is currently reviewing or proposing changes to several accounting and reporting standards, some of which govern key aspects of the Company’s financial statements. Most notably, the FASB’s proposed standard on accounting for credit losses would remove the existing “probable” threshold in U.S. generally accepted accounting principles (“GAAP”) for recognizing credit losses and, instead, utilize an “expected credit loss” measurement objective. The proposed model would be applied in the recognition of credit losses for loans, held-to-maturity securities and other receivables at the time the financial asset is originated or acquired and adjusted each period for changes in expected credit losses. This proposal represents a significant change in GAAP and may, when issued, result in material changes to the Company’s Consolidated Financial Statements.

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Non-GAAP Financial Measures and Reconciliation to GAAP

In addition to evaluating People’s United’s results of operations in accordance with U.S. GAAP, management routinely supplements its 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’s underlying operating performance and trends, and facilitates comparisons with the performance of other financial institutions. Further, the efficiency ratio and operating earnings metrics are used by management in its assessment of financial performance, including non-interest expense control, while the tangible equity ratio and tangible book value per share are used to analyze the relative strength of People’s United’s capital position.

The efficiency ratio, which represents an approximate measure of the cost required by People’s United to generate a dollar of revenue, is the ratio of (i) total non-interest expense (excluding goodwill impairment charges, amortization of other acquisition-related intangible assets, losses on real estate assets and non-recurring expenses, which are also excluded in arriving at operating non-interest expense) (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). In addition, operating lease expense is excluded from total non-interest expense and netted against operating lease income within non-interest income to conform with the reporting approach applied to fee-based businesses already presented on a net basis. People’s United generally considers an item of income or expense to be non-recurring if it is not similar to an item of income or expense of a type incurred within the last two years and is not similar to an item of income or expense of a type reasonably expected to be incurred within the following two years.

Operating earnings exclude from net income those items that management considers to be of such a non-recurring or infrequent nature that, by excluding such items (net of income taxes), People’s United’s results can be measured and assessed on a more consistent basis from period to period. Items excluded from operating earnings, which include, but are not limited to: (i) non-recurring gains/losses; (ii) writedowns of banking house assets and related lease termination costs; (iii) severance-related costs; (iv) merger-related expenses, including acquisition integration and other costs; and (v) charges related to executive-level management separation costs, are generally also excluded when calculating the efficiency ratio. Operating earnings per share (“EPS”) 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 EPS. Operating return on average assets is calculated by dividing operating earnings by average total assets. Operating return on average tangible stockholders’ equity is calculated by dividing operating earnings by average tangible stockholders’ equity. The operating dividend payout ratio is calculated by dividing dividends paid by operating earnings for the respective period.

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

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The following table summarizes People’s United’s operating non-interest expense and efficiency ratio, as derived from amounts reported in the Consolidated Statements of Income:

Years ended December 31 (dollars in millions)	2015			2014			2013			2012			2011
Total non-interest expense	$	860.6		$	841.5		$	839.0		$	830.6		$	871.9
Adjustments to arrive at operating non-interest expense:
Writedowns of banking house assets		(10.5	)		(6.2	)		(9.0	)		—			(4.8	)
Severance-related costs		(2.4	)		(3.3	)		(2.8	)		(7.3	)		(5.3	)
Acquisition integration and other costs		—			—			(0.9	)		(5.4	)		—
Merger-related expenses		—			—			—			—			(42.9	)
Executive-level separation agreement		—			—			—			—			(3.8	)
Total		(12.9	)		(9.5	)		(12.7	)		(12.7	)		(56.8	)
Operating non-interest expense		847.7			832.0			826.3			817.9			815.1
Operating lease expense (1)		(37.1	)		(37.4	)		(31.3	)		(26.3	)		(20.8	)
Amortization of other acquisition-related intangible assets		(23.9	)		(24.8	)		(26.2	)		(26.8	)		(25.8	)
Other (2)		(7.8	)		(10.3	)		(10.3	)		(7.8	)		(10.3	)
Total non-interest expense for efficiency ratio	$	778.9		$	759.5		$	758.5		$	757.0		$	758.2
Net interest income (FTE basis)	$	957.3		$	931.1		$	905.8		$	940.4		$	921.2
Total non-interest income		352.4			350.8			341.7			320.4			314.3
Total revenues		1,309.7			1,281.9			1,247.5			1,260.8			1,235.5
Adjustments:
Operating lease expense (1)		(37.1	)		(37.4	)		(31.3	)		(26.3	)		(20.8	)
Gain on sale of business, net of expenses		(9.2	)		(20.6	)		—			—			—
BOLI FTE adjustment		2.4			2.8			2.1			2.8			3.1
Net security gains		—			(3.0	)		—			—			(8.8	)
Other (3)		(0.1	)		(0.5	)		(0.8	)		(0.7	)		2.2
Total revenues for efficiency ratio	$	1,265.7		$	1,223.2		$	1,217.5		$	1,236.6		$	1,211.2
Efficiency ratio		61.5	%		62.1	%		62.3	%		61.2	%		62.6	%

(1) Operating lease expense is excluded from total non-interest expense and netted against operating lease income within non-interest income to conform with the reporting approach applied to fee-based businesses already presented on a net basis.

(2) 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.

(3) 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.

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The following table summarizes People’s United’s operating earnings, operating EPS and operating return on average assets:

Years ended December 31 (dollars in millions, except per share data)	2015			2014			2013			2012			2011
Net income, as reported	$	260.1		$	251.7		$	232.4		$	245.3		$	192.4
Adjustments to arrive at operating earnings:
Writedowns of banking house assets		10.5			6.2			9.0			—			4.8
Severance-related costs		2.4			3.3			2.8			7.3			5.3
Gain on sale of business, net of expenses		(9.2	)		(20.6	)		—			—			—
Acquisition integration and other costs		—			—			0.9			5.4			—
Merger-related expenses		—			—			—			—			42.9
Executive-level separation costs		—			—			—			—			3.8
Total pre-tax adjustments		3.7			(11.1	)		12.7			12.7			56.8
Tax effect		(1.3	)		3.9			(4.0	)		(4.1	)		(18.5	)
Total adjustments, net of tax		2.4			(7.2	)		8.7			8.6			38.3
Operating earnings	$	262.5		$	244.5		$	241.1		$	253.9		$	230.7
EPS, as reported	$	0.86		$	0.84		$	0.74		$	0.72		$	0.55
Adjustment to arrive at operating EPS:
Writedowns of banking house assets		0.03			0.01			0.03			—			0.01
Severance-related costs		—			0.01			—			0.02			0.01
Gain on sale of business, net of expenses		(0.02	)		(0.04	)		—			—			—
Acquisition integration and other costs		—			—			—			0.01			—
Merger-related expenses		—			—			—			—			0.08
Executive-level separation costs		—			—			—			—			0.01
Total adjustments per share		0.01			(0.02	)		0.03			0.03			0.11
Operating EPS	$	0.87		$	0.82		$	0.77		$	0.75		$	0.66
Average total assets	$	36,894		$	33,753		$	31,009		$	28,113		$	26,028
Operating return on average assets		0.71	%		0.72	%		0.78	%		0.90	%		0.89	%

The following tables summarize People’s United’s operating return on average tangible stockholders’ equity and operating dividend payout ratio:

Years ended December 31 (dollars in millions)	2015			2014			2013			2012			2011
Operating earnings	$	262.5		$	244.5		$	241.1		$	253.9		$	230.7
Average stockholders’ equity	$	4,697		$	4,625		$	4,755		$	5,168		$	5,271
Less: Average goodwill and average other acquisition-related intangible assets		2,094			2,115			2,141			2,165			2,053
Average tangible stockholders’ equity	$	2,603		$	2,510		$	2,614		$	3,003		$	3,218
Operating return on average tangible stockholders’ equity		10.1	%		9.7	%		9.2	%		8.5	%		7.2	%

Years ended December 31 (dollars in millions)	2015			2014			2013			2012			2011
Dividends paid	$	201.2		$	196.9		$	204.8		$	217.9		$	220.9
Operating earnings	$	262.5		$	244.5		$	241.1		$	253.9		$	230.7
Operating dividend payout ratio		76.7	%		80.6	%		84.9	%		85.8	%		95.8	%

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The following tables summarize People’s United’s tangible equity ratio and tangible book value per share derived from amounts reported in the Consolidated Statements of Condition:

As of December 31 (dollars in millions)	2015			2014			2013			2012			2011
Total stockholders’ equity	$	4,732		$	4,633		$	4,568		$	5,039		$	5,215
Less: Goodwill and other acquisition-related intangible assets		2,088			2,103			2,127			2,154			2,174
Tangible stockholders’ equity	$	2,644		$	2,530		$	2,441		$	2,885		$	3,041
Total assets	$	38,877		$	35,997		$	33,214		$	30,324		$	27,558
Less: Goodwill and other acquisition-related intangible assets		2,088			2,103			2,127			2,154			2,174
Tangible assets	$	36,789		$	33,894		$	31,087		$	28,170		$	25,384
Tangible equity ratio		7.2	%		7.5	%		7.9	%		10.2	%		12.0	%

As of December 31 (in millions, except per share data)	2015		2014		2013		2012		2011
Tangible stockholders’ equity	$	2,644	$	2,530	$	2,441	$	2,885	$	3,041
Common shares issued		399.24		396.85		396.45		395.81		395.42
Less: Common shares classified as treasury shares		89.06		89.05		89.54		56.18		38.03
Unallocated ESOP common shares		7.32		7.67		8.01		8.36		8.71
Common shares		302.86		300.13		298.90		331.27		348.68
Tangible book value per share	$	8.73	$	8.43	$	8.17	$	8.71	$	8.72

Economic Environment

People’s United’s results are subject to fluctuations based on economic conditions that can affect interest rates, deposit flows, credit demand and the ability of borrowers to service debt, among others. Throughout 2015, the United States economy experienced a moderate expansion, with real gross domestic product increasing 2.4% year-over-year, national employment increasing by 2.6 million jobs, the unemployment rate declining from 5.7% to 5.0% and the yield on the 10-year Treasury note increasing from 2.17% to 2.27%. Inflation remained temperate with the Consumer Price Index (“CPI”) increasing 0.7% over the course of the year and the CPI index less food and energy increasing 2.1%. After maintaining the target rate for federal funds between 0% and 0.25% since December 2008, the Federal Open Market Committee (the “FOMC”) of the FRB raised the target rate to 0.25% to 0.50% at its December 2015 meeting.

On balance, the moderate expansion in 2015 supported loan and deposit growth and loan performance even as the interest rate environment did not support an expansion of the net interest margin. The Company expects a continuation of moderate economic growth in 2016, which should continue to support deposit growth, loan growth and loan performance. Although the FOMC indicated at its December 2015 meeting that four additional 0.25% increases in the target federal funds rate would likely occur in 2016, subsequent global developments and concerns about the momentum of the United States economy make it unlikely that the target rate will increase by that much. Unless economic growth and inflation increase more than in 2015, the interest rate environment in 2016 will continue to be a challenging one for the net interest margin.

27

The New England region and southeastern New York comprise People’s United’s primary market area, with Connecticut, Massachusetts, New York and Vermont having the largest concentration of People’s United’s loans, deposits and branches. While the New England economy experienced a less severe contraction during the recent recession than the United States as a whole, since the recession ended it has expanded more slowly. Employment growth since 2008 has exceeded the national average only in Massachusetts and New York. As of December 31, 2015, Connecticut and Maine had yet to recover all the jobs lost in the recession, while Vermont and New Hampshire had increased employment but more slowly that the nation overall. The combination of the less severe recession but slower subsequent growth resulted in state unemployment rates that are less than the national rate in all states in the Company’s primary market area except for Connecticut, where the unemployment rate was 5.2% as of December 31, 2015 compared to the national average of 5.0%.

Slow economic growth is expected to continue within People’s United’s primary market area. Although this area does not enjoy the natural resources that have led to strong economic growth in other areas of the nation, its skilled labor force should enable it to be competitive in sectors of the economy with high growth potential, including health care, technology, education and advanced manufacturing.

Financial Overview

Comparison of Financial Condition at December 31, 2015 and 2014. Total assets at December 31, 2015 were $38.9 billion, a $2.9 billion increase from December 31, 2014, reflecting increases of $1.8 billion in total loans and $1.4 billion in total securities, partially offset by decreases of $298 million in cash and cash equivalents and $100 million in securities purchased under agreements to resell. The increase in total loans from December 31, 2014 to December 31, 2015 reflects increases of $1.3 billion in commercial loans and $525 million in residential mortgage loans. Originated loans increased $2.1 billion from December 31, 2014 to $27.6 billion (commercial loans increased $1.5 billion and retail loans increased $583 million) and acquired loans decreased $254 million. At December 31, 2015, the carrying amount of the acquired loan portfolio totaled $797 million. The increase in total securities primarily reflects net purchases of government sponsored enterprise (“GSE”) residential mortgage-backed securities and U.S. Treasury and agency securities. The decrease in cash and cash equivalents reflects a $293 million decrease in interest-bearing deposits at the FRB-NY.

Non-performing assets (excluding acquired non-performing loans) totaled $181.5 million at December 31, 2015, a $42.6 million decrease from year-end 2014, reflecting decreases of $38.8 million in non-performing commercial real estate loans and $12.0 million in real estate owned (“REO”), partially offset by a $7.0 million increase in repossessed assets. The allowance for loan losses was $211.0 million ($202.9 million on originated loans and $8.1 million on acquired loans) at December 31, 2015 compared to $198.3 million ($188.1 million on originated loans and $10.2 million on acquired loans) at December 31, 2014. At December 31, 2015, the originated allowance for loan losses as a percentage of originated loans was 0.73% and as a percentage of originated non-performing loans was 127.3%, compared to 0.74% and 95.5%, respectively, at December 31, 2014.

At December 31, 2015, total liabilities were $34.1 billion, a $2.8 billion increase from December 31, 2014, reflecting increases of $2.3 billion in total deposits and $616 million in total borrowings. The increase in total borrowings reflects additional funding used to support loan growth and securities purchases.

People’s United’s total stockholders’ equity was $4.7 billion at December 31, 2015, a $99 million increase from December 31, 2014. This increase reflects net income in 2015 of $260.1 million and net restricted stock and stock option-related transactions in 2015 totaling $43.2 million, partially offset by dividends paid in 2015 of $201.2 million. As a percentage of total assets, stockholders’ equity was 12.2% at December 31, 2015 compared to 12.9% at December 31, 2014. Tangible stockholders’ equity as a percentage of tangible assets was 7.2% at December 31, 2015 compared to 7.5% at December 31, 2014.

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People’s United’s Tier 1 Leverage, CET1, Tier 1 and Total Risk-Based capital ratios were 8.0%, 9.8%, 9.8% and 11.7%, respectively, at December 31, 2015 (calculated in accordance with Basel III capital rules), compared to 7.9%, 9.8%, 9.8% and 12.2%, respectively, at December 31, 2014. The Bank’s Tier 1 Leverage, CET1, Tier 1 and Total Risk-Based capital ratios were 8.4%, 10.2%, 10.2% and 12.6%, respectively, at December 31, 2015 (calculated in accordance with Basel III capital rules), compared to 8.5%, 10.5%, 10.5% and 13.0%, respectively, at December 31, 2014.

Comparison of Results of Operations for the Years Ended December 31, 2015 and 2014. People’s United reported net income of $260.1 million, or $0.86 per diluted share, for the year ended December 31, 2015, compared to $251.7 million, or $0.84 per diluted share, for the year-ago period. Included in the 2015 results is a net after-tax gain of $6.1 million ($0.02 per share) resulting from the sale of the Company’s payroll services business. Included in the 2014 results is a net after-tax gain of $13.4 million ($0.04 per share) resulting from the formation of a merchant services joint venture. Results for 2015 and 2014 include $2.5 million and $6.2 million (after-tax), respectively, of non-operating expenses. Operating earnings were $262.5 million, or $0.87 per share, and $244.5 million, or $0.82 per share, for the respective periods. The results for 2015 reflect continued loan and deposit growth, meaningful cost control and the negative impact of the historically low interest rate environment. People’s United’s operating return on average assets was 0.71% for 2015 compared to 0.72% for 2014. Operating return on average tangible stockholders’ equity was 10.1% for 2015 compared to 9.7% for the year-ago period.

FTE net interest income totaled $957.3 million in 2015, a $26.2 million increase from the year-ago period, and the net interest margin declined 21 basis points from 2014 to 2.88%. The decrease in the net interest margin primarily reflects continued pricing pressure within the loan portfolio, including the pay-off of higher-yielding loans and new loan originations at rates lower than the existing portfolio, and declining interest income on acquired loans.

Average total earning assets increased $3.0 billion compared to 2014, reflecting increases of $2.0 billion in average total loans and $985 million in average securities. Average total funding liabilities increased $3.0 billion compared to 2014, reflecting increases of $3.2 billion in average total deposits and $200 million in average notes and debentures, partially offset by a $423 million decrease in average total borrowings.

Compared to 2014, total non-interest income increased $1.6 million and total non-interest expense increased $19.1 million. The efficiency ratio was 61.5% for 2015 compared to 62.1% for the year-ago period. The provision for loan losses in 2015 totaled $33.4 million compared to $40.6 million in the year-ago period. Net loan charge-offs as a percentage of average total loans were 0.08% in 2015 compared to 0.12% in 2014.

Comparison of Financial Condition at December 31, 2014 and 2013. Total assets at December 31, 2014 were $36.0 billion, a $2.8 billion increase from December 31, 2013, primarily reflecting increases of $2.2 billion in total loans and $545 million in short-term investments. The increase in total loans from December 31, 2013 to December 31, 2014 primarily reflects increases of $1.6 billion in commercial loans and $515 million in residential mortgage loans. Originated loans increased $2.7 billion from December 31, 2013 to $25.5 billion (commercial loans increased $2.1 billion and retail loans increased $615 million) and acquired loans decreased $474 million. At December 31, 2014, the carrying amount of the acquired loan portfolio totaled $1.1 billion. The increase in short-term investments reflects an increase in interest-bearing deposits at the FRB-NY.

Non-performing assets (excluding acquired non-performing loans) totaled $224.1 million at December 31, 2014, a $23.7 million decrease from year-end 2013, primarily reflecting a $23.2 million decrease in non-performing retail loans partially offset by a $3.6 million increase in non-performing commercial loans. The allowance for loan losses was $198.3 million ($188.1 million on originated loans and $10.2 million on acquired loans) at December 31, 2014 compared to $187.8 million ($177.5 million on originated loans and $10.3 million on acquired loans) at December 31, 2013. At December 31, 2014, the originated allowance for loan losses as a percentage of originated loans was 0.74% and as a percentage of originated non-performing loans was 95.5%, compared to 0.78% and 81.9%, respectively, at December 31, 2013.

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At December 31, 2014, total liabilities were $31.4 billion, a $2.7 billion increase from December 31, 2013, reflecting increases of $3.6 billion in total deposits, including a $2.5 billion increase in brokered deposits, and $394 million in notes and debentures, partially offset by a $1.4 billion decrease in total borrowings. The increase in notes and debentures reflects the Bank’s issuance of $400 million of subordinated notes in June 2014.

People’s United’s total stockholders’ equity was $4.6 billion at December 31, 2014, a $65 million increase from December 31, 2013. This increase reflects net income in 2014 of $251.7 million partially offset by dividends paid in 2014 of $196.9 million. As a percentage of total assets, stockholders’ equity was 12.9% at December 31, 2014 compared to 13.8% at December 31, 2013. Tangible stockholders’ equity as a percentage of tangible assets was 7.5% at December 31, 2014 compared to 7.9% at December 31, 2013.

People’s United’s (consolidated) Tier 1 common equity, Tier 1 and Total Risk-Based capital ratios were 9.8%, 9.8% and 12.2%, respectively, at December 31, 2014, compared to 10.2%, 10.2% and 11.3%, respectively, at December 31, 2013. The Bank’s leverage (core) capital ratio, and Tier 1 and Total Risk-Based capital ratios were 8.5%, 10.5% and 13.0%, respectively, at December 31, 2014, compared to 9.1%, 11.1% and 12.4%, respectively, at December 31, 2013.

Comparison of Results of Operations for the Years Ended December 31, 2014 and 2013. People’s United reported net income of $251.7 million, or $0.84 per diluted share, for the year ended December 31, 2014, compared to $232.4 million, or $0.74 per diluted share, for the 2013 period. Included in the 2014 results is a net after-tax gain of $13.4 million ($0.04 per share) resulting from the formation of a merchant services joint venture. Results for 2014 and 2013 include $6.2 million and $8.7 million (after-tax), respectively, of non-operating expenses. Operating earnings were $244.5 million, or $0.82 per share, and $241.1 million, or $0.77 per share, for the respective periods. The results for 2014 reflect continued loan and deposit growth, meaningful cost control and the negative impact of the historically low interest rate environment. People’s United’s operating return on average assets was 0.72% for 2014 compared to 0.78% for 2013. Operating return on average tangible stockholders’ equity was 9.7% for 2014 compared to 9.2% for the 2013 period.

FTE net interest income totaled $931.1 million in 2014, a $25.3 million increase from the year-ago period, and the net interest margin declined 22 basis points from 2013 to 3.09%. The decrease in the net interest margin primarily reflects continued pricing pressure within the loan portfolio, including the pay-off of higher-yielding loans and new loan originations at rates lower than the existing portfolio, and declining interest income on acquired loans.

Average total earning assets increased $2.8 billion compared to 2013, reflecting increases of $2.6 billion in average total loans and $201 million in average securities. Average total funding liabilities increased $2.9 billion compared to 2013, reflecting increases of $2.3 billion in average total deposits, $393 million in average total borrowings and $192 million in average notes and debentures.

Compared to 2013, total non-interest income increased $9.1 million and total non-interest expense increased $2.5 million. The efficiency ratio was 62.1% for 2014 compared to 62.3% for 2013. The provision for loan losses in 2014 totaled $40.6 million compared to $43.7 million in 2013. Net loan charge-offs as a percentage of average total loans were 0.12% in 2014 compared to 0.19% in 2013.

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Segment Results

People’s United’s operations are divided into three primary operating segments that represent its core businesses: Commercial Banking; Retail Banking; and Wealth Management. In addition, the Treasury area manages People’s United’s securities portfolio, short-term investments, brokered deposits, wholesale borrowings and the funding center.

The Company’s operating segments have been aggregated into two reportable segments: Commercial Banking and Retail Banking. These reportable segments have been identified and organized based on the nature of the underlying products and services applicable to each segment, the type of customers to whom those products and services are offered and the distribution channel through which those products and services are made available. With respect to Wealth Management, this presentation results in the allocation of the Company’s insurance business and certain trust activities to the Commercial Banking segment, and the allocation of the Company’s brokerage business and certain other trust activities to the Retail Banking segment.

Segment Performance Summary

Years ended December 31 (in millions)	Net Income
	2015			2014			2013
Commercial Banking	$	234.8		$	221.0		$	224.9
Retail Banking		(14.1	)		20.3			47.4
Total reportable segments		220.7			241.3			272.3
Treasury		45.7			11.1			(25.4	)
Other		(6.3	)		(0.7	)		(14.5	)
Total Consolidated	$	260.1		$	251.7		$	232.4

People’s United uses an internal profitability reporting system to generate information by operating segment, which is based on a series of management estimates and allocations regarding funds transfer pricing (“FTP”), the provision for loan losses, non-interest expense and income taxes. These estimates and allocations, some of which are subjective in nature, are subject to periodic review and refinement. Any changes in estimates and allocations that may affect the reported results of any segment will not affect the consolidated financial position or results of operations of People’s United as a whole. Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

FTP, which is used in the calculation of each operating segment’s net interest income, measures the value of funds used in and provided by an operating segment. The difference between the interest income on earning assets and the interest expense on funding liabilities, and the corresponding FTP charge for interest income or credit for interest expense, results in net spread income (see Treasury). For fixed-term assets and liabilities, the FTP rate is assigned at the time the asset or liability is originated by reference to the Company’s FTP yield curve, which is updated daily. For non-maturity-term assets and liabilities, the FTP rate is determined based upon the underlying characteristics, or behavior, of each particular product and results in the use of a historical rolling average FTP rate determined over a period that is most representative of the average life of the particular asset or liability. While the Company’s FTP methodology serves to remove interest rate risk (“IRR”) from the operating segments and better facilitate pricing decisions, thereby allowing management to more effectively assess the longer-term profitability of an operating segment, it may, in sustained periods of low and/or high interest rates, result in a measure of operating segment net interest income that is not reflective of current interest rates.

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During the quarter ended March 31, 2015, the Company modified its FTP methodology relating to certain deposit products that resulted in a reduction in the funding credit recognized within net interest income for Commercial Banking and Retail Banking, with the offset reflected in Treasury. Prior period segment results for this modification have not been adjusted and continue to reflect the previous FTP methodology.

A five-year rolling average net charge-off rate is used as the basis for the provision for loan losses for the respective operating segment in order to present a level of portfolio credit cost that is representative of the Company’s historical experience, without presenting the potential volatility from year-to-year changes in credit conditions. While this method of allocation allows management to more effectively assess the longer-term profitability of a segment, it may result in a measure of segment provision for loan losses that does not reflect actual incurred losses for the periods presented.

People’s United allocates a majority of non-interest expenses to each operating segment using a full-absorption costing process (i.e. all expenses are fully-allocated to the segments). Direct and indirect costs are analyzed and pooled by process and assigned to the appropriate operating segment and corporate overhead costs are allocated to the operating segments. During the quarter ended March 31, 2015, the Company modified its cost allocation methodology with respect to the allocation of branch costs associated with servicing certain customers, which resulted in an increase in non-interest expense for Commercial Banking and Wealth Management, with the offset reflected in Retail Banking. Prior period segment results have not been adjusted and continue to reflect the previous cost allocation methodology. Income tax expense is allocated to each operating segment using a constant rate, based on an estimate of the consolidated effective income tax rate for the year. Average total assets and average total liabilities are presented for each reportable segment due to management’s reliance, in part, on such average balances for purposes of assessing segment performance.

For a more detailed description of the estimates and allocations used to measure segment performance, see Note 22 to the Consolidated Financial Statements.

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Commercial Banking consists principally of commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. This segment also includes the equipment financing operations of PCLC and PUEFC, as well as cash management, correspondent banking and municipal banking. In addition, Commercial Banking consists of institutional trust services, corporate trust, insurance services provided through PUIA and private banking.

Years ended December 31 (in millions)	2015		2014		2013
Net interest income	$	551.6	$	516.0	$	487.7
Provision for loan losses		47.7		47.6		47.3
Total non-interest income		162.0		141.4		143.3
Total non-interest expense		313.2		275.7		247.4
Income before income tax expense		352.7		334.1		336.3
Income tax expense		117.9		113.1		111.4
Net income	$	234.8	$	221.0	$	224.9
Average total assets	$	21,465.7	$	19,338.5	$	16,979.5
Average total liabilities		5,483.2		4,275.1		3,459.7

Commercial Banking net income increased $13.8 million in 2015 compared to 2014, reflecting increases in net interest income and non-interest income partially offset by an increase in non-interest expense. The $35.6 million increase in net interest income primarily reflects the benefit from an increase in average commercial loans and lower net FTP funding charges, partially offset by continued pricing pressure within the loan portfolio, including the pay-off of higher-yielding loans and new originations at rates lower than the existing portfolio, and declining interest income on acquired loans. Included in non-interest income in 2015 and 2014 are net gains (losses) on sales of acquired loans totaling $1.7 million and $(0.9) million, respectively. Excluding these net gains (losses), non-interest income increased $18.0 million in 2015, primarily reflecting increases in commercial banking lending fees, customer interest rate swap income and operating lease income resulting from a higher level of equipment leases to PCLC customers. The $37.5 million increase in non-interest expense in 2015 reflects higher levels of direct (including operating lease expense) and allocated expenses. Average total assets increased $2.1 billion and average total liabilities increased $1.2 billion compared to 2014, reflecting loan and deposit growth. In addition, during the quarter ended March 31, 2015, certain customer loans and deposits were transferred from Retail Banking to Commercial Banking to better align with the Bank’s customer relationship management approach.

Commercial Banking net income decreased $3.9 million in 2014 compared to 2013, as an increase in net interest income was more than offset by lower non-interest income and an increase in non-interest expense. The $28.3 million increase in net interest income primarily reflects the benefits from loan growth and lower net FTP funding charges, partially offset by continued pricing pressure within the loan portfolio, including the pay-off of higher-yielding loans and new loan originations at rates lower than the existing portfolio, and declining interest income on acquired loans. Included in non-interest income in 2014 and 2013 are net (losses) gains on sales of acquired loans totaling $(0.9) million and $5.7 million, respectively. Excluding these net (losses) gains, non-interest income increased $4.7 million in 2014, primarily reflecting increases in operating lease income resulting from a higher level of equipment leases to PCLC customers and trust-related income, partially offset by declines in commercial banking lending fees and customer interest rate swap income. The $28.3 million increase in non-interest expense in 2014 reflects higher levels of direct (including operating lease expense) and allocated expenses. Average total assets increased $2.4 billion and average total liabilities increased $815 million compared to 2013, reflecting loan and deposit growth.

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Retail Banking includes, as its principal business lines, consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. In addition, Retail Banking consists of brokerage, financial advisory services, investment management services and life insurance provided by PSI and non-institutional trust services.

Years ended December 31 (in millions)	2015			2014		2013
Net interest income	$	344.6		$	408.0	$	456.3
Provision for loan losses		15.2			16.8		15.0
Total non-interest income		169.7			167.4		180.9
Total non-interest expense		520.2			528.0		551.2
(Loss) income before income tax (benefit) expense		(21.1	)		30.6		71.0
Income tax (benefit) expense		(7.0	)		10.3		23.6
Net (loss) income	$	(14.1	)	$	20.3	$	47.4
Average total assets	$	8,478.1		$	8,514.8	$	8,373.4
Average total liabilities		19,235.8			19,109.2		19,064.4

Retail Banking net loss in 2015 compared to net income in 2014 primarily reflects a $63.4 million decrease in net interest income. The decrease in net interest income primarily reflects lower net FTP funding credits, continued pricing pressure within the loan portfolio, including the pay-off of higher yielding loans and new originations at rates lower than the existing portfolio, and declining interest income on acquired loans, partially offset by the benefit from an increase in average residential mortgage loans. The $2.3 million increase in non-interest income primarily reflects an increase in net gains on sales of residential mortgages. The $7.8 million decrease in non-interest expense primarily reflects lower levels of direct and allocated expenses. Average total assets decreased $36.7 million and average total liabilities increased $126.6 million compared to 2014. During the quarter ended March 31, 2015, certain customer loans and deposits were transferred from Retail Banking to Commercial Banking to better align with the Bank’s customer relationship management approach.

Retail Banking net income decreased $27.1 million in 2014 compared to 2013. The $48.3 million decrease in net interest income primarily reflects continued pricing pressure within the loan portfolio, including the pay-off of higher yielding loans and new originations at rates lower than the existing portfolio, declining interest income on acquired loans and lower net FTP funding credits, partially offset by continued loan growth. The $13.5 million decrease in non-interest income primarily reflects an $11.9 million decrease in net gains on sales of residential mortgages partially offset by an increase in investment management fees. The $23.2 million decrease in non-interest expense primarily reflects lower levels of direct and allocated expenses. Compared to 2013, average total assets increased $141 million, reflecting loan growth, and average total liabilities increased $45 million, reflecting deposit growth partially offset by a decrease in customer repurchase agreements.

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Treasury encompasses the securities portfolio, short-term investments, brokered deposits, wholesale borrowings and the funding center, which includes the impact of derivative financial instruments used for risk management purposes.

The income or loss for the funding center represents the IRR component of People’s United’s net interest income as calculated by its FTP model in deriving each operating segment’s net interest income. Under this process, the funding center buys funds from liability-generating business lines, such as consumer deposits, and sells funds to asset-generating business lines, such as commercial lending. The price at which funds are bought and sold on any given day is set by People’s United’s Treasury group and is based on the wholesale cost to People’s United of assets and liabilities with similar maturities. Liability-generating businesses sell newly-originated liabilities to the funding center and recognize a funding credit, while asset-generating businesses buy funding for newly-originated assets from the funding center and recognize a funding charge. Once funding for an asset is purchased from or a liability is sold to the funding center, the price that is set by the Treasury group will remain with that asset or liability until it matures or reprices, which effectively transfers responsibility for managing IRR to the Treasury group.

Years ended December 31 (in millions)	2015		2014		2013
Net interest income (loss)	$	64.4	$	10.7	$	(46.6	)
Total non-interest income		11.1		12.4		7.2
Total non-interest expense		6.9		6.2		(1.4	)
Income (loss) before income tax expense (benefit)		68.6		16.9		(38.0	)
Income tax expense (benefit)		22.9		5.8		(12.6	)
Net income (loss)	$	45.7	$	11.1	$	(25.4	)
Average total assets	$	6,405.5	$	5,266.7	$	5,021.1
Average total liabilities		7,194.4		5,423.0		3,352.3

Treasury’s net income increased $51.7 million in 2015 compared to 2014. The $53.7 million improvement in net interest income primarily reflects lower net FTP funding costs and an increase in securities income, partially offset by an increase in interest expense. The decrease in non-interest income primarily reflects a decrease in net security gains and BOLI income. The increase in non-interest expense primarily reflects increases in both direct and allocated expenses. Average total assets increased $1.1 billion in 2015 compared to 2014, primarily reflecting an increase in average securities and average short-term investments. The $1.8 billion increase in average total liabilities in 2015 compared to 2014 reflects increases in average deposits and average notes and debentures partially offset by a decrease in average borrowings.

Treasury’s net income in 2014 compared to a net loss in 2013 primarily reflects a $57.3 million increase in net interest income. The improvement in net interest income primarily reflects lower net FTP funding costs and an increase in securities income, partially offset by an increase in interest expense. The increase in non-interest income primarily reflects increases in net security gains and BOLI income. The increase in non-interest expense primarily reflects increases in both direct and allocated expenses. Average total assets increased $246 million in 2014 compared to 2013, reflecting increases in average securities and average short-term investments. The $2.1 billion increase in average total liabilities in 2014 compared to 2013 reflects increases in average brokered deposits, average total borrowings and average notes and debentures ($400 million of subordinated notes were issued in June 2014).

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Other includes the residual financial impact from the allocation of revenues and expenses (including the provision for loan losses) and certain revenues and expenses not attributable to a particular segment; assets and liabilities not attributable to a particular segment; reversal of the FTE adjustment since net interest income for each segment is presented on an FTE basis; and the FTP impact from excess capital. The “Other” category also includes certain non-recurring items, such as: the net gain on the sale of the payroll services business totaling $9.2 million for the year ended December 31, 2015 and the net gain on the merchant services joint venture totaling $20.6 million for the year ended December 31, 2014 (included in total non-interest income); and one-time charges totaling $12.9 million, $9.5 million and $12.7 million for the years ended December 31, 2015, 2014 and 2013, respectively (included in total non-interest expense).

Years ended December 31 (in millions)	2015			2014			2013
Net interest loss	$	(28.5	)	$	(22.8	)	$	(8.8	)
Provision for loan losses		(29.5	)		(23.8	)		(18.6	)
Total non-interest income		9.6			29.6			10.3
Total non-interest expense		20.3			31.6			41.8
Loss before income tax benefit		(9.7	)		(1.0	)		(21.7	)
Income tax benefit		(3.4	)		(0.3	)		(7.2	)
Net loss	$	(6.3	)	$	(0.7	)	$	(14.5	)
Average total assets	$	544.7		$	632.8		$	634.9
Average total liabilities		283.3			320.1			377.7

Net Interest Income

Net interest income and net interest margin are affected by many factors, including changes in average balances; interest rate fluctuations and the slope of the yield curve; sales of loans and securities; residential mortgage loan and mortgage-backed security prepayment rates; product pricing; competitive forces; the relative mix, repricing characteristics and maturity of interest-earning assets and interest-bearing liabilities; non-interest-bearing sources of funds; hedging activities; and asset quality.

Net Interest Margin   Years ended December 31 (percent) Net Interest Income - FTE   Years ended December 31 (dollars in millions)

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On December 17, 2015, the FRB raised the targeted range for the federal funds rate by 25 basis points to 0.25% to 0.50%. Until that date, the FRB had not changed the targeted range of 0% to 0.25% since December 2008. For 2015, the average effective federal funds rate was 0.13%.

The net interest margin was 2.88% in 2015 compared to 3.09% in 2014. The decline in the net interest margin in 2015 compared to 2014 primarily reflects continued pricing pressure within the loan portfolio, including the pay-off of higher-yielding loans and new loan originations at rates lower than the existing portfolio, declining interest income on acquired loans and an increase in total deposit average balances. The net interest margin continues to be negatively impacted by the historically low interest rate environment where loan repricings are outpacing the Company’s ability to lower deposit costs as well as the continued investment of a portion of the Company’s capital in low-yielding short-term investments.

2015 Compared to 2014

FTE net interest income increased $26.2 million compared to 2014, reflecting a $44.3 million increase in total interest and dividend income partially offset by an $18.1 million increase in total interest expense, and the net interest margin decreased 21 basis points to 2.88%. The decline in the net interest margin reflects new loan volume at rates lower than the existing portfolio (15 basis points) and an increase in average deposit balances (5 basis points).

Average total earning assets were $33.2 billion in 2015, a $3.0 billion increase from 2014, primarily reflecting increases of $2.0 billion in average total loans and $985 million in average securities. Average total loans, average securities and average short-term investments comprised 82%, 17% and 1%, respectively, of average total earning assets in 2015 compared to 83%, 16% and 1%, respectively, of average total earning assets in 2014. In 2015, the yield earned on the total loan portfolio was 3.52% and the yield earned on securities and short-term investments was 2.28%, compared to 3.74% and 2.15%, respectively, in the year-ago period. Excluding adjustable-rate residential mortgage loans, which are mostly of the hybrid variety, 49% of the loan portfolio had floating interest rates at December 31, 2015 compared to 47% at December 31, 2014.

The average total commercial and residential mortgage loan portfolios increased $1.4 billion and $587 million, respectively, compared to 2014, reflecting growth. Average consumer loans increased $20 million compared to 2014, reflecting a $32 million increase in average home equity loans partially offset by a $10 million decrease in average indirect auto loans.

Average total funding liabilities were $31.8 billion in 2015, a $3.0 billion increase from the year-ago period, reflecting increases of $3.2 billion in average total deposits and $200 million in average notes and debentures, partially offset by a $423 million decrease in average total borrowings. The increase in average total deposits reflects organic growth as well as a $1.2 billion increase in average brokered deposits. Excluding brokered deposits, average savings and money market deposits, average non-interest-bearing deposits and average time deposits increased $1.4 billion, $411 million and $204 million, respectively. Average total deposits comprised 87% and 85% of average total funding liabilities in 2015 and 2014, respectively. The increase in average notes and debentures reflects the issuance of $400 million of subordinated notes in June 2014.

The two basis point increase to 0.43% from 0.41% in the rate paid on average total funding liabilities in 2015 compared to 2014 primarily reflects a decrease in market interest rates and the shift in deposit mix as well as continued repricing of higher-yielding deposits assumed in acquisitions. The rate paid on average total deposits increased two basis points in 2015, reflecting an increase of four basis points in time deposits. Average savings and money market deposits and average time deposits comprised 60% and 19%, respectively, of average total deposits in 2015 compared to 59% and 19%, respectively, in 2014.

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2014 Compared to 2013

FTE net interest income increased $25.3 million compared to 2013, reflecting a $28.2 million increase in total interest and dividend income partially offset by a $2.9 million increase in total interest expense, and the net interest margin decreased 22 basis points to 3.09%. The decline in the net interest margin reflects new loan volume at rates lower than the existing portfolio (21 basis points).

Average total earning assets were $30.2 billion in 2014, a $2.8 billion increase from 2013, primarily reflecting increases of $2.6 billion in average total loans and $201 million in average securities. Average total loans, average securities and average short-term investments comprised 83%, 16% and 1%, respectively, of average total earning assets in both 2014 and 2013. In 2014, the yield earned on the total loan portfolio was 3.74% and the yield earned on securities and short-term investments was 2.15%, compared to 4.08% and 2.08%, respectively, in 2013. Excluding adjustable-rate residential mortgage loans, which are mostly of the hybrid variety, 47% of the loan portfolio had floating interest rates at December 31, 2014 compared to 45% at December 31, 2013.

The average total commercial and residential mortgage loan portfolios increased $2.0 billion and $509 million, respectively, compared to 2013, reflecting growth. Average consumer loans increased $27 million compared to 2013, reflecting a $50 million increase in average home equity loans partially offset by a $23 million decrease in average indirect auto loans.

Average total funding liabilities were $28.7 billion in 2014, a $2.9 billion increase from 2013, reflecting increases of $2.3 billion in average total deposits, $393 million in average total borrowings and $192 million in average notes and debentures. The increase in average total deposits reflects organic growth as well as a $1.4 billion increase in average brokered deposits. Excluding brokered deposits, average savings and money market deposits and average non-interest-bearing deposits increased $781 million and $370 million, respectively, while average time deposits decreased $230 million. Average total deposits comprised 85% of average total funding liabilities in both 2014 and 2013. The increase in average total borrowings reflects the additional funding used to support loan growth. The increase in average notes and debentures reflects the issuance of $400 million of subordinated notes in June 2014.

The four basis point decrease to 0.41% from 0.45% in the rate paid on average total funding liabilities in 2014 compared to 2013 primarily reflects a decrease in market interest rates and the shift in deposit mix as well as continued repricing of higher-yielding deposits assumed in acquisitions. The rate paid on average total deposits decreased four basis points in 2014, reflecting decreases of 11 basis points in time deposits and one basis point in savings and money market deposits. Average savings and money market deposits and average time deposits comprised 59% and 19%, respectively, of average total deposits in 2014 compared to 57% and 21%, respectively, in 2013.

Average Balance Sheet, Interest and Yield/Rate Analysis

The table on the following page presents average balance sheets, FTE-basis interest income, interest expense and the corresponding average yields earned and rates paid for the years ended December 31, 2015, 2014 and 2013. The average balances are principally daily averages and, for loans, include both performing and non-performing balances. Interest income on loans includes the effect of deferred loan fees and costs accounted for as yield adjustments, but does not include interest on loans for which People’s United has ceased to accrue interest. Premium amortization and discount accretion (including amounts attributable to purchase accounting adjustments) are also included in the respective interest income and interest expense amounts. The impact of People’s United’s use of derivative instruments in managing IRR is also reflected in the table, classified according to the instrument hedged and the related risk management objective.

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Average Balance Sheet, Interest and Yield/Rate Analysis

	2015							2014							2013
Years ended December 31 (dollars in millions)	Average Balance		Interest		Yield/ Rate			Average Balance		Interest		Yield/ Rate			Average Balance		Interest		Yield/ Rate
Assets:
Short-term investments (1)	$	247.8	$	0.5		0.20	%	$	214.9	$	0.4		0.20	%	$	156.1	$	0.3		0.22	%
Securities (2)		5,731.5		135.7		2.37			4,746.9		106.3		2.24			4,545.9		97.7		2.15
Loans:
Commercial (3)		10,189.5		375.4		3.68			9,266.2		360.7		3.89			8,421.5		356.2		4.23
Commercial real estate		9,643.9		343.5		3.56			9,145.0		354.2		3.87			7,965.0		351.2		4.41
Residential mortgage		5,222.4		166.7		3.19			4,635.1		154.3		3.33			4,126.1		141.4		3.42
Consumer		2,193.1		72.3		3.30			2,172.7		73.9		3.40			2,145.4		74.8		3.49
Total loans		27,248.9		957.9		3.52			25,219.0		943.1		3.74			22,658.0		923.6		4.08
Total earning assets		33,228.2	$	1,094.1		3.29	%		30,180.8	$	1,049.8		3.48	%		27,360.0	$	1,021.6		3.73	%
Other assets		3,665.8							3,572.0							3,648.9
Total assets	$	36,894.0						$	33,752.8						$	31,008.9
Liabilities and stockholders’ equity:
Deposits:
Non-interest-bearing	$	5,801.9	$	—		—	%	$	5,390.1	$	—		—	%	$	5,020.3	$	—		—	%
Savings, interest-bearing checking and money market		16,489.3		43.5		0.26			14,238.9		36.7		0.26			12,417.3		33.0		0.27
Time		5,241.4		52.0		0.99			4,668.7		44.2		0.95			4,524.7		48.1		1.06
Total deposits		27,532.6		95.5		0.35			24,297.7		80.9		0.33			21,962.3		81.1		0.37
Borrowings:
FHLB advances		2,306.6		9.8		0.42			2,593.7		9.2		0.36			2,043.9		8.2		0.40
Customer repurchase agreements		463.6		0.9		0.19			482.0		1.0		0.20			522.7		1.1		0.20
Federal funds purchased		411.0		0.8		0.19			471.8		0.8		0.17			641.2		1.2		0.19
Repurchase agreements		0.6		—		1.76			53.5		0.1		0.26			1.0		—		1.75
Other borrowings		—		—		—			3.6		—		0.08			2.9		—		0.08
Total borrowings		3,181.8		11.5		0.36			3,604.6		11.1		0.31			3,211.7		10.5		0.33
Notes and debentures		1,039.4		29.8		2.87			839.1		26.7		3.19			647.5		24.2		3.74
Total funding liabilities		31,753.8	$	136.8		0.43	%		28,741.4	$	118.7		0.41	%		25,821.5	$	115.8		0.45	%
Other liabilities		442.9							386.0							432.6
Total liabilities		32,196.7							29,127.4							26,254.1
Stockholders’ equity		4,697.3							4,625.4							4,754.8
Total liabilities and stockholders’ equity	$	36,894.0						$	33,752.8						$	31,008.9
Net interest income/spread (4)			$	957.3		2.86	%			$	931.1		3.07	%			$	905.8		3.28	%
Net interest margin						2.88	%						3.09	%						3.31	%

(1) Includes securities purchased under agreements to resell.

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

(3) Includes commercial and industrial loans and equipment financing loans.

(4) The FTE adjustment was $25.2 million, $19.2 million and $17.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.

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Volume and Rate Analysis

The following table shows the extent to which changes in interest rates and changes in the volume of average total earning assets and average interest-bearing liabilities have affected People’s United net interest income. For each category of earning assets and interest-bearing liabilities, information is provided relating to: changes in volume (changes in average balances multiplied by the prior year’s average interest rates); changes in rates (changes in average interest rates multiplied by the prior year’s average balances); and the total change. Changes attributable to both volume and rate have been allocated proportionately.

	2015 Compared to 2014 Increase (Decrease)									2014 Compared to 2013 Increase (Decrease)
(in millions)	Volume			Rate			Total			Volume			Rate			Total
Interest and dividend income:
Short-term investments	$	0.1		$	—		$	0.1		$	0.1		$	—		$	0.1
Securities		23.0			6.4			29.4			4.4			4.2			8.6
Loans:
Commercial		34.7			(20.0	)		14.7			34.1			(29.6	)		4.5
Commercial real estate		18.7			(29.4	)		(10.7	)		48.6			(45.6	)		3.0
Residential mortgage		18.9			(6.5	)		12.4			17.0			(4.1	)		12.9
Consumer		0.7			(2.3	)		(1.6	)		1.0			(1.9	)		(0.9	)
Total loans		73.0			(58.2	)		14.8			100.7			(81.2	)		19.5
Total change in interest and dividend income		96.1			(51.8	)		44.3			105.2			(77.0	)		28.2
Interest expense:
Deposits:
Savings, interest-bearing checking and money market		5.9			0.9			6.8			4.7			(1.0	)		3.7
Time		5.6			2.2			7.8			1.5			(5.4	)		(3.9	)
Total deposits		11.5			3.1			14.6			6.2			(6.4	)		(0.2	)
Borrowings:
FHLB advances		(1.1	)		1.7			0.6			2.0			(1.0	)		1.0
Customer repurchase agreements		—			(0.1	)		(0.1	)		(0.1	)		—			(0.1	)
Federal funds purchased		(0.1	)		0.1			—			(0.3	)		(0.1	)		(0.4	)
Repurchase agreements		(0.3	)		0.2			(0.1	)		0.2			(0.1	)		0.1
Other borrowings		—			—			—			—			—			—
Total borrowings		(1.5	)		1.9			0.4			1.8			(1.2	)		0.6
Notes and debentures		6.0			(2.9	)		3.1			6.5			(4.0	)		2.5
Total change in interest expense		16.0			2.1			18.1			14.5			(11.6	)		2.9
Change in net interest income	$	80.1		$	(53.9	)	$	26.2		$	90.7		$	(65.4	)	$	25.3

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The following table provides the weighted average yields earned and rates paid for each major category of earning assets and funding liabilities as of December 31, 2015:

(dollars in millions)	Balance		Yield/Rate
Earning assets:
Short-term investments	$	380.5		0.22	%
Securities		6,449.4		2.18
Loans		28,410.9		3.36
Total earning assets	$	35,240.8		3.11	%
Funding liabilities:
Non-interest-bearing deposits	$	6,178.6		—	%
Interest-bearing deposits:
Money market		7,648.3		0.29
Interest-bearing checking		5,572.5		0.16
Time		4,818.1		1.03
Savings		4,199.9		0.13
Borrowings		4,307.3		0.55
Notes and debentures		1,038.7		3.48
Total funding liabilities	$	33,763.4		0.43	%

Non-Interest Income

								Percentage Increase (Decrease)
Years ended December 31 (dollars in millions)	2015		2014			2013		2015/2014			2014/2013
Bank service charges	$	125.2	$	128.6		$	127.3		(2.6	)%		1.0	%
Investment management fees		43.7		41.6			37.2		5.0			11.8
Commercial banking lending fees		42.6		36.4			40.4		17.0			(9.9	)
Operating lease income		42.3		41.6			34.5		1.7			20.6
Insurance revenue		30.7		29.9			31.2		2.7			(4.2	)
Brokerage commissions		12.6		13.6			13.7		(7.4	)		(0.7	)
Gain on sale of business, net of expenses		9.2		20.6			—		n/m			n/m
Net gains on sales of residential mortgage loans		5.5		2.9			14.8		89.7			(80.4	)
Net gains (losses) on sales of acquired loans		1.7		(0.9	)		5.7		n/m			n/m
Net security gains		—		3.0			—		n/m			n/m
Other non-interest income:
Customer interest rate swap income, net		14.5		8.6			10.8		68.6			(20.4	)
BOLI		4.6		5.8			4.5		(20.7	)		28.9
Other		19.8		19.1			21.6		3.7			(11.6	)
Total other non-interest income		38.9		33.5			36.9		16.1			(9.2	)
Total non-interest income	$	352.4	$	350.8		$	341.7		0.5	%		2.7	%

n/m – not meaningful

Total non-interest income, excluding the effects of the gain on sale of business in both 2015 and 2014 discussed below, increased $13.0 million in 2015 compared to 2014 and decreased $11.5 million in 2014 compared to 2013. The increase in non-interest income in 2015 compared to 2014 primarily reflects increases in commercial banking lending fees and customer interest rate swap income. The decline in non-interest income in 2014 compared to 2013 primarily reflects lower net gains on sales of residential mortgages and acquired loans, and commercial banking lending fees, partially offset by higher operating lease income.

41

Bank service charges continue to be impacted as a result of certain provisions of the DFA (see below) as increases in cash management and certain other commercial fees were more than offset by lower overdraft fees.

The improvement in investment management fees in both 2015 and 2014 reflects the continued benefits from new revenue initiatives, additional personnel in our key markets and a broader suite of product offerings. Assets under administration and those under full discretionary management, neither of which are reported as assets of People’s United, totaled $9.8 billion and $5.6 billion, respectively, at December 31, 2015 compared to $10.8 billion and $5.6 billion, respectively, at December 31, 2014. The decline in brokerage commissions in 2015 compared to 2014 primarily reflects lower levels of mutual fund and annuity commission income.

The increase in net gains on sales of residential mortgage loans in 2015 compared to 2014 primarily reflects a 51% increase in the volume of residential mortgage loan sales and an improvement in spreads on pricing. Loans held for sale at December 31, 2015 and 2014 consisted of newly-originated residential mortgage loans with carrying amounts of $34.5 million and $34.2 million, respectively. The decrease in net gains on sales of residential mortgage loans in 2014 compared to 2013 primarily reflects a 62% decline in the volume of residential mortgage loan sales and narrower spreads on pricing.

Net gains (losses) on sales of acquired loans in 2015, 2014 and 2013 reflect sales of acquired loans with contractual balances of $24.1 million, $10.4 million and $12.4 million, respectively (carrying amounts of $22.3 million, $10.3 million and $10.2 million, respectively).

The fluctuation in commercial banking lending fees in both years is primarily related to the level of prepayment fees collected each year. The increase in operating lease income in both 2015 and 2014 reflects higher levels of equipment leased to PCLC customers. The level of insurance revenue over the past few years reflects the continued soft insurance market. In October 2015, PUIA acquired Kesten-Brown Insurance, LLC, a Connecticut-based insurance brokerage firm that focuses on commercial lines and employee benefits.

On an FTE basis, BOLI income totaled $7.0 million in 2015, compared to $8.6 million in 2014 and $6.6 million in 2013. The decrease in BOLI income in 2015 compared to 2014 primarily reflects lower average interest rates in 2015 compared to 2014, resulting in a slightly lower crediting rate in 2015. The increase in BOLI income in 2014 compared to 2013 primarily reflects a slightly higher crediting rate in 2014 and death benefits received in 2014 totaling $0.5 million (none in 2013). Net security gains in 2014 include a $2.3 million gain resulting from the call of a single security acquired in a previous acquisition.

During the quarter ended December 31, 2015, the Bank sold its payroll services business to its current payroll software licensor and entered into a long-term referral agreement. A $9.2 million gain (non-operating), net of related expenses, was recognized, which represented the fair value of the Bank’s entire portfolio of payroll services customer contracts that previously had a zero book basis. During the quarter ended June 30, 2014, the Bank formed a joint venture with Vantiv, Inc. to provide a comprehensive suite of payment solutions to businesses throughout the Bank’s footprint. The Bank retained a 49% minority interest in the joint venture and recognized a $20.6 million gain (non-operating), net of related expenses, resulting from the formation of the joint venture. The gain represented the fair value of the Bank’s entire portfolio of merchant contracts that was contributed to the joint venture and which previously had a zero book basis. The investment in the joint venture is accounted for using the equity method of accounting.

The DFA, which was signed into law on July 21, 2010, imposes significant changes in the financial regulatory landscape and will continue to impact all financial institutions and their holding companies, including the Bank and People’s United. Enactment of the DFA has resulted in significant increases in the Company’s regulatory compliance burden and costs and may restrict the financial products and services People’s United offers to its customers.

42

The DFA limits the amount of interchange fee that an issuer of debit cards may charge or receive to an amount that is “reasonable and proportional” to the cost of the transaction. The DFA further provides that a debit card issuer may not restrict the number of payment card networks on which a debit card transaction may be processed to a single network or limit the ability of a merchant to direct the routing of debit card payments for processing.

The DFA created a new federal consumer protection agency, the CFPB, which is empowered to promulgate new consumer protection regulations and revise existing regulations in many areas of consumer protection. In January 2014, a series of final rules issued by the CFPB to implement provisions in the DFA related to mortgage origination and mortgage servicing went into effect and in October 2015, new mortgage disclosure rules went into effect. These rules may increase the cost of originating and servicing residential mortgage loans.

Non-Interest Expense

										Percentage Increase (Decrease)
Years ended December 31 (dollars in millions)	2015			2014			2013			2015/2014			2014/2013
Compensation and benefits	$	449.5		$	436.0		$	427.1			3.1	%		2.1	%
Occupancy and equipment		149.5			147.3			148.0			1.5			(0.5	)
Professional and outside service		68.0			59.2			60.6			14.9			(2.3	)
Operating lease expense		37.1			37.4			31.3			(0.8	)		19.5
Regulatory assessments		35.1			35.6			33.8			(1.4	)		5.3
Amortization of other acquisition-related intangible assets		23.9			24.8			26.2			(3.6	)		(5.3	)
Other non-interest expense:
Stationery, printing, postage and telephone		19.0			20.3			20.9			(6.4	)		(2.9	)
Advertising and promotion		12.0			13.0			15.4			(7.7	)		(15.6	)
Other		66.5			67.9			75.7			(2.1	)		(10.3	)
Total other non-interest expense		97.5			101.2			112.0			(3.7	)		(9.6	)
Total non-interest expense	$	860.6		$	841.5		$	839.0			2.3	%		0.3	%
Efficiency ratio		61.5	%		62.1	%		62.3	%

Total non-interest expense increased $19.1 million in 2015 compared to 2014 and $2.5 million in 2014 compared to 2013. Included in total non-interest expense are non-operating expenses (see below) totaling $12.9 million, $9.5 million and $12.7 million in 2015, 2014 and 2013, respectively.

The improvement in the efficiency ratio in 2015 compared to 2014 reflects a 3.5% increase in adjusted total revenues partially offset by a 2.6% increase in adjusted total expenses (see Non-GAAP Financial Measures and Reconciliation to GAAP).

Compensation and benefits includes non-operating expenses totaling $2.4 million in 2015, $3.3 million in 2014 and $2.8 million in 2013. Excluding non-operating expenses, compensation and benefits increased $14.4 million in 2015 compared to 2014 and $8.4 million in 2014 compared to 2013. The increases for both periods primarily reflect normal merit increases, higher incentive-related costs and compensation and benefit costs for additional employees primarily within commercial banking, wealth management and regulatory compliance. In 2016, pension-related expense is expected to decline by approximately $3.0 million as a result of a change in accounting estimate (see Note 16 to the Consolidated Financial Statements).

43

The increase in occupancy and equipment expense in 2015 compared to 2014 primarily reflects higher equipment-related costs partially offset by the benefits from consolidating branches and other office space over the past few years. The decrease in occupancy and equipment expense in 2014 compared to 2013 reflects the benefits from consolidating branches and other office space over the past few years. In 2015, the Company closed 18 branches compared to eight branches in 2014. Since the beginning of 2011, the Company has closed 54 branches, most of which were traditional branches, and opened 25 branches, of which 16 are more cost efficient Stop & Shop locations.

The increase in professional and outside services fees in 2015 compared to 2014 is primarily related to costs associated with a number of initiatives focused on enhancing the Company’s product offerings and processes. The increase in operating lease expense in both 2015 and 2014 relates to the higher level of equipment leased to PCLC customers. The decrease in advertising and promotion in both 2015 and 2014 primarily reflects lower levels of spending on certain advertising campaigns.

Regulatory assessments include FDIC insurance premiums that are primarily based on the Bank’s average total assets and average tangible equity, and FDIC-defined risk factors. The actual amount of future regulatory assessments will be dependent on several factors, including: (i) the Bank’s average total assets and average tangible equity; (ii) the Bank’s risk profile; and (iii) whether additional special assessments are imposed in future periods and the manner in which such assessments are determined. The higher level of regulatory assessments over the past few years primarily reflects increases in the Bank’s average total assets over this period. Regulatory assessment expense in 2015 reflects a $2.4 million benefit resulting from the overpayment of FDIC assessments in prior periods.

In October 2015, the FDIC issued a proposed rule that would serve to implement a DFA provision requiring recapitalization of the DIF to 1.35% of insured deposits after it reached a 1.15% reserve ratio. As proposed, the rule would go into effect in either the first or second quarter of 2016 and, for banks with over $10 billion in assets, would result in an annual assessment surcharge of 4.5 basis points in order to bring the DIF’s reserve ratio to 1.35% by the end of 2018. The Company is currently evaluating the impact of the proposed surcharge on the Company’s Consolidated Financial Statements.

Scheduled amortization expense attributable to other acquisition-related intangible assets for each of the next five years is as follows: $ $23.2 million in 2016; $22.1 million in 2017; $10.7 million in 2018; $9.9 million in 2019; and $9.5 million in 2020.

Included in other non-interest expense are non-operating expenses totaling $10.5 million, $6.2 million and $9.0 million in 2015, 2014 and 2013, respectively, relating to charges associated with the writedowns of certain banking house assets and related lease termination costs. The decrease in other non-interest expense in both 2015 and 2014 primarily reflects lower collateral protection costs as well as the continued benefits from cost-savings initiatives.

Income Taxes

Income tax expense totaled $130.4 million, $128.9 million and $115.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. People’s United’s effective income tax rate was 33.4%, 33.9% and 33.1% for the years ended December 31, 2015, 2014 and 2013, respectively. People’s United’s effective income tax rate for 2016 is expected to be approximately 34%.

Differences, if any, arising between People’s United’s effective income tax rate and the U.S. federal statutory rate of 35% are generally attributable to: (i) tax-exempt interest earned on certain investments;

(ii) tax-exempt income from BOLI; and (iii) state income taxes.

44

People’s United holds ownership interests in limited partnerships formed to develop and operate affordable housing units for lower income tenants throughout its franchise area. The underlying partnerships, which are considered variable interest entities, are not consolidated into the Company’s Consolidated Financial Statements. These investments have historically played a role in enabling the Bank to meet its CRA requirements while, at the same time, providing federal income tax credits. The cost of the Company’s investments is amortized on a straight-line basis over the period during which the related federal income tax credits are realized (generally ten years). Amortization expense, which is now included as a component of income tax expense, totaled $12.6 million, $10.7 million and $8.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Income tax expense for all three years reflects the state tax benefit resulting from the formation of People’s Mortgage Investment Company, a wholly owned subsidiary of the Bank. The formation of this subsidiary was a result of Connecticut tax legislation, which became effective on January 1, 1999, that allows for the transfer of mortgage loans to a passive investment subsidiary. The related earnings of the subsidiary, and any dividends it pays to the parent, are not subject to Connecticut income tax. See Note 11 to the Consolidated Financial Statements for additional information concerning income tax expense.

Securities

	2015				2014				2013
As of December 31 (in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities held to maturity:
Debt securities:
State and municipal	$	1,019.6	$	1,075.3	$	832.8	$	880.1	$	584.5	$	584.5
GSE residential mortgage-backed securities		588.5		585.7		—		—		—		—
Corporate		—		—		—		—		55.0		57.0
Other		1.5		1.5		1.5		1.5		1.0		1.0
Total securities held to maturity	$	1,609.6	$	1,662.5	$	834.3	$	881.6	$	640.5	$	642.5
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	363.7	$	362.8	$	56.5	$	56.8	$	48.6	$	48.9
GSE residential mortgage-backed securities and CMOs		4,191.3		4,164.7		3,943.4		3,936.7		4,172.2		4,096.4
Corporate		—		—		—		—		58.3		60.2
Other		—		—		—		—		2.6		2.5
Total debt securities		4,555.0		4,527.5		3,999.9		3,993.5		4,281.7		4,208.0
Equity securities		0.2		0.2		0.2		0.2		0.2		0.2
Total securities available for sale	$	4,555.2	$	4,527.7	$	4,000.1	$	3,993.7	$	4,281.9	$	4,208.2

People’s United strives to maintain an appropriate balance between loan portfolio growth and deposit funding. People’s United’s management believes that a large securities portfolio funded with wholesale borrowings provides limited economic value and therefore, the total securities portfolio only comprises 17% of total assets as of December 31, 2015.

People’s United has historically utilized the securities portfolio for earnings generation (in the form of interest and dividend income), liquidity, IRR management, asset diversification and tax planning. Securities available for sale are used as part of People’s United’s asset/liability management strategy and may be sold in response to, or in anticipation of, factors such as changes in market conditions and interest rates, changes in security prepayment rates, liquidity considerations and regulatory capital requirements.

45

People’s United invests in debt securities rated in the highest categories assigned by nationally recognized statistical ratings organizations (“NRSRO”) and all credit risk undergoes an internal creditworthiness assessment separate from NRSRO ratings. Management has internal guidelines for the credit quality and duration of People’s United’s debt securities portfolio and monitors these on a regular basis.

At December 31, 2015, People’s United’s securities available for sale portfolio totaled $4.5 billion, or 12% of total assets, compared to $4.0 billion, or 11% of total assets, at December 31, 2014 and $4.2 billion, or 13% of total assets, at December 31, 2013. The increase in securities available for sale in 2015 compared to 2014 primarily reflects net purchases of GSE residential mortgage-backed securities and U.S. Treasury and agency securities. The decrease in securities available for sale in 2014 compared to 2013 primarily reflects principal repayments and maturities of GSE residential mortgage-backed securities and collateralized mortgage obligations (“CMOs”).

At December 31, 2015, 2014 and 2013, the amortized cost exceeded the fair value of the securities available for sale portfolio by $27.5 million, $6.4 million and $73.7 million, respectively.

All unrealized gains and those unrealized losses representing temporary declines in value due to factors other than credit are recorded in stockholders’ equity, net of income taxes. As a result, management anticipates continued fluctuations in stockholders’ equity due to changes in the fair value of these securities, albeit on a relatively modest scale due to the duration of the portfolio. The duration of the debt securities portfolio was approximately 4.2 years, 4.1 years and 4.2 years at December 31, 2015, 2014 and 2013, respectively.

In December 2013, the entire state and municipal securities portfolio was transferred from available for sale to held to maturity. This action was taken to minimize future fluctuations in stockholders’ equity due to changes in the fair value of these long duration securities resulting from changes in interest rates in light of management’s view of the long-term investment horizon of this portfolio.

In addition to the held to maturity and available for sale securities discussed above, the Bank holds shares of capital stock in both the FHLB of Boston and New York and the FRB-NY. Dividend income on FRB-NY capital stock and FHLB capital stock totaled $7.1 million (for approximately 10 months) and $4.6 million, respectively, for the year ended December 31, 2015. On February 18, 2016, the FRB issued an interim final rule, which serves to implement a reduction in the dividend rate paid on Federal Reserve Bank capital stock from an annual fixed-rate of 6% to the lesser of 6% or a rate based on 10-year Treasury notes, for those banks with total assets greater than $10 billion, including the Bank. The Company estimates that dividend income from FRB-NY capital stock may be reduced by approximately $5 million on an annual basis.

Lending Activities

People’s United conducts its lending activities principally through its Commercial Banking and Retail Banking operating segments. People’s United’s lending activities consist of originating loans secured by commercial and residential properties, and extending secured and unsecured loans to commercial and consumer customers.

Total loans increased $1.82 billion in 2015 compared to 2014 and increased $2.20 billion in 2014 compared to 2013. People’s United acquired loans with fair values of $1.87 billion in 2011 and $3.49 billion in 2010. Loans acquired in connection with business combinations are referred to as ‘acquired’ loans as a result of the manner in which they are accounted for (see further discussion under ‘Acquired Loans’ in Note 1 to the Consolidated Financial Statements). All other loans are referred to as ‘originated’ loans. At December 31, 2015 and 2014, the carrying amount of the acquired loan portfolio totaled $796.6 million and $1.05 billion, respectively.

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The following table summarizes the loan portfolio before deducting the allowance for loan losses:

As of December 31 (in millions)	2015		2014		2013		2012		2011
Commercial:
Commercial real estate	$	10,028.8	$	9,404.3	$	8,921.6	$	7,294.2	$	7,172.2
Commercial and industrial		7,748.7		7,189.6		6,302.1		6,047.7		5,352.6
Equipment financing		2,973.3		2,865.5		2,593.1		2,352.3		2,014.2
Total Commercial Portfolio		20,750.8		19,459.4		17,816.8		15,694.2		14,539.0
Retail:
Residential mortgage:
Adjustable-rate		4,851.2		4,393.8		3,895.3		3,335.2		2,947.7
Fixed-rate		605.8		538.2		521.3		550.9		680.7
Total residential mortgage		5,457.0		4,932.0		4,416.6		3,886.1		3,628.4
Consumer:
Home equity		2,153.7		2,143.1		2,084.6		2,051.5		2,057.7
Other consumer		49.4		57.5		72.3		104.8		159.7
Total consumer		2,203.1		2,200.6		2,156.9		2,156.3		2,217.4
Total Retail Portfolio		7,660.1		7,132.6		6,573.5		6,042.4		5,845.8
Total loans	$	28,410.9	$	26,592.0	$	24,390.3	$	21,736.6	$	20,384.8

People’s United’s loan portfolio is primarily concentrated within New England with 59% and 61% of the total loan portfolio representing loans to customers located within the New England states at December 31, 2015 and 2014, respectively, and 20% and 19% represents loans to customers located in New York at those dates.

Total Loans

As of December 31 (dollars in millions)

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Contractual Maturity and Interest Rate Sensitivity

The following table presents the contractual maturity of total loans as of December 31, 2015:

(in millions)	Commercial		Retail		Total
Amounts due:
One year or less	$	2,820.0	$	89.7	$	2,909.7
After one year:
One to five years		9,228.1		197.2		9,425.3
Over five years		8,702.7		7,373.2		16,075.9
Total due after one year		17,930.8		7,570.4		25,501.2
Total	$	20,750.8	$	7,660.1	$	28,410.9

The following table presents, as of December 31, 2015, loan amounts due after December 31, 2016, and whether these loans have adjustable or fixed interest rates:

	Interest Rate
(in millions)	Adjustable		Fixed		Total
Commercial	$	9,568.0	$	8,362.8	$	17,930.8
Retail		6,587.6		982.8		7,570.4
Total due after one year	$	16,155.6	$	9,345.6	$	25,501.2

The following tables set forth the contractual maturity (based on final payment date) and interest rate sensitivity (based on next repricing date) of People’s United’s commercial and industrial loans and construction loans:

As of December 31, 2015 (in millions)	One Year or Less		After One Year Through Five Years		After Five Years		Total
Contractual maturity:
Commercial and industrial loans	$	1,893.3	$	3,070.7	$	2,784.7	$	7,748.7
Construction loans:
Commercial real estate		246.3		126.1		258.2		630.6
Residential mortgage		16.0		89.7		—		105.7
Total	$	2,155.6	$	3,286.5	$	3,042.9	$	8,485.0

As of December 31, 2015 (in millions)	One Year or Less		After One Year Through Five Years		After Five Years		Total
Interest rate sensitivity:
Variable rates	$	5,821.9	$	525.7	$	100.5	$	6,448.1
Predetermined rates		263.8		703.2		1,069.9		2,036.9
Total	$	6,085.7	$	1,228.9	$	1,170.4	$	8,485.0

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Commercial Portfolio

The commercial lending businesses include commercial real estate, commercial and industrial lending, and equipment financing.

Commercial Real Estate

People’s United manages the commercial real estate portfolio by limiting the concentration in any particular loan type, term, industry, or to any individual borrower. People’s United’s highest loan concentration in the commercial real estate loan portfolio is in the residential (multi-family) sector, which represented 38% of this loan portfolio at December 31, 2015.

As of December 31 (in millions)	2015		2014
Property Type:
Residential (multi-family)	$	3,807.2	$	3,378.4
Retail		2,450.5		2,422.0
Office buildings		2,137.3		2,185.3
Industrial/manufacturing		578.4		538.6
Hospitality/entertainment		490.2		424.2
Mixed/special use		259.2		165.2
Self-storage		136.7		147.3
Health care		63.9		19.2
Land		56.7		62.7
Other		48.7		61.4
Total commercial real estate	$	10,028.8	$	9,404.3

Commercial Real Estate Portfolio

As of December 31 (dollars in millions)

The commercial real estate portfolio increased $625 million in 2015 compared to 2014, reflecting originated loan growth of $737 million, or 8% of the commercial real estate portfolio, partially offset by run-off in the acquired portfolio. The commercial real estate portfolio increased $483 million in 2014 compared to 2013, reflecting originated loan growth of $673 million, or 8% of the commercial real estate portfolio, partially offset by run-off in the acquired portfolio. Included in the commercial real estate portfolio are construction loans totaling $631 million and $658 million at December 31, 2015 and 2014, respectively, net of the unadvanced portion of such loan totaling $314 million and $435 million, respectively. During 2015 and 2014, the Company sold acquired loans with outstanding principal balances of $24.1 million and $10.4 million, respectively (carrying amounts of $22.3 million and $10.3 million, respectively) and recognized net gains (losses) on sales totaling $1.7 million and $(0.9) million, respectively.

At both December 31, 2015 and 2014, 36% of People’s United’s commercial real estate portfolio was secured by properties located in New York, and 19% and 20%, respectively, was secured by properties located in Connecticut. In addition, 26% of the commercial real estate portfolio was secured by properties located in Massachusetts, Vermont and New Hampshire at both December 31, 2015 and 2014. No other state exposure was greater than 5% at December 31, 2015.

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Commercial real estate is dependent on the successful operation of the related income-producing real estate. Accordingly, the income streams generated by this portfolio can be impacted by changes in the real estate market and, to a large extent, the New England and southeastern New York economies. People’s United continues to focus on maintaining strong asset quality standards in a competitive market generally characterized by aggressive pricing and less attractive underwriting terms. The growth and performance of this portfolio is largely dependent on the economic environment and may be adversely impacted if the economy weakens in the future.

Commercial Real Estate Diversification by Property Type

As of December 31, 2015 (percent)

Commercial and Industrial

People’s United 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.

As of December 31 (in millions)	2015		2014
Industry:
Service	$	1,390.1	$	1,328.5
Finance and insurance		1,374.9		1,174.9
Manufacturing		1,004.2		949.9
Wholesale distribution		880.6		802.6
Health services		849.4		724.0
Real estate, rental and leasing		797.7		873.5
Retail sales		633.0		589.0
Transportation/utility		225.6		202.8
Construction		182.0		194.4
Arts/entertainment/recreation		146.1		130.4
Information/media		125.2		102.2
Public administration		61.8		57.2
Mining, oil and gas		31.7		28.2
Other		46.4		32.0
Total commercial and industrial	$	7,748.7	$	7,189.6

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Commercial and Industrial Portfolio

As of December 31 (dollars in millions)

Commercial products are generally packaged together to create a financing solution specifically tailored to the needs of the customer. Taking a total relationship-focused approach with commercial customers to meet their financing needs has resulted in substantial growth in non-interest-bearing deposits over time, as well as in opportunities to provide other banking services to principals and employees of these commercial customers.

The borrower’s ability to repay a commercial loan is closely tied to the ongoing profitability and cash flow of the borrower’s business. Consequently, a commercial loan tends to be more directly impacted by changes in economic cycles that affect businesses generally and the borrower’s business specifically. The availability of adequate collateral is a factor in commercial loan decisions and loans are generally collateralized and/or guaranteed by third parties.

In 2015, the commercial and industrial portfolio increased $559 million compared to 2014, reflecting originated loan growth of $635 million, or 9% of the commercial and industrial portfolio, partially offset by run-off in the acquired portfolio. In 2014, the commercial and industrial portfolio increased $888 million compared to 2013, reflecting originated loan growth of $1.1 billion, or 18% of the commercial and industrial portfolio, partially offset by run-off in the acquired portfolio.

At December 31, 2015 and 2014, the commercial and industrial portfolio included $526 million and $486 million, respectively, of asset-based lending loans, of which 83% were to customers located within the Company’s geographic footprint at December 31, 2015. The commercial and industrial portfolio also includes $963 million of mortgage warehouse loans at December 31, 2015, compared to $781 million at December 31, 2014. Such loans represent lines of credit extended to a loan originator to fund a mortgage that a borrower initially used to purchase a property. The extension of credit generally lasts from the loan’s point of origination to the point when the mortgage is sold into the secondary market. At December 31, 2015, 7% of the mortgage warehouse loans were to customers located within the Company’s footprint.

At both December 31, 2015 and 2014, 22% of the commercial and industrial loan portfolio consisted of loans to Connecticut-based businesses. Commercial and industrial loan exposure in the states of Vermont, Massachusetts and New Hampshire totaled a combined 39% and 42% at December 31, 2015 and 2014, respectively. No other state exposure was greater than 14%. While People’s United continues to focus on asset quality, the performance of the commercial lending and industrial portfolio may be adversely impacted if the economy weakens in the future.

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Commercial and Industrial Diversification by Industry

As of December 31, 2015 (percent)

Equipment Financing

PCLC and PUEFC provide equipment financing for customers in all 50 states, specializing in financing for the transportation/utility, construction, printing and general manufacturing industries. PCLC will buy or sell portions of financing transactions in the secondary market to manage the concentration risk of its overall portfolio. In addition, PCLC provides customers with the option to lease equipment. Substantially the entire equipment financing portfolio (97% at both December 31, 2015 and 2014) was to customers located outside of New England. At December 31, 2015, 34% of the equipment financing portfolio consisted of loans to customers located in Texas, California, Louisiana and New York and no other state exposure was greater than 5%.

As of December 31 (in millions)	2015		2014
Industry:
Transportation/utility	$	1,076.2	$	994.8
Construction		407.3		371.4
Finance, insurance and real estate		370.8		328.3
Waste		204.0		211.8
Printing		182.0		192.5
Wholesale distribution		162.6		146.8
Manufacturing		155.1		174.9
Packaging		137.5		140.0
Service		72.1		68.4
Mining, oil and gas		66.5		104.6
Health services		56.2		51.9
Other		83.0		80.1
Total equipment financing	$	2,973.3	$	2,865.5

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Equipment Financing Portfolio

As of December 31 (dollars in millions)

The equipment financing portfolio increased $108 million in 2015 compared to 2014, reflecting originated loan growth of $119 million, or 4% of the equipment and financing portfolio, partially offset by run-off in the PUEFC acquired loan portfolio. Operating on a national scale, equipment financing represented 14% and 15% of the commercial portfolio at December 31, 2015 and 2014, respectively. While People’s United continues to focus on asset quality, the performance of the equipment financing portfolio may be adversely impacted if the national economy weakens in the future.

Equipment Financing Diversification by Industry

As of December 31, 2015 (percent)

Retail Portfolio

Residential Mortgage Lending

People’s United offers its customers a wide range of residential mortgage loan products. These include conventional fixed-rate loans, jumbo fixed-rate loans (loans with principal balances greater than established Freddie Mac and Fannie Mae limits), 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. People’s United originates these loans through its network of retail branches and calling officers, as well as correspondent lenders and mortgage brokers.

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At December 31, 2015 and 2014, 86% and 89%, respectively, of the residential mortgage loan portfolio was secured by properties located in New England. At December 31, 2015, the residential mortgage loan portfolio included $1.1 billion of interest-only loans, of which less than $1 million are stated income loans, compared to $993 million and $1 million, respectively, at December 31, 2014. See Asset Quality for further discussion of interest-only loans. Also included in residential mortgage loans at December 31, 2015 and 2014 are construction loans totaling $106 million and $108 million, respectively.

People’s United’s residential mortgage originations totaled $2.0 billion in 2015, $1.6 billion in 2014 and $2.3 billion in 2013. The mix and volume of residential mortgage loan originations vary in response to changes in market interest rates and customer preferences. Adjustable-rate residential mortgage loans accounted for 69% of total residential mortgage originations in 2015, compared to 74% in 2014 and 62% in 2013.

In 2015, adjustable-rate residential mortgage loans increased $457 million compared to 2014, reflecting originated loan growth of $479 million, or 11% of adjustable-rate residential mortgage loans, partially offset by run-off in the acquired portfolio. In 2014, adjustable-rate residential mortgage loans increased $499 million compared to 2013, reflecting originated loan growth of $520 million, or 14% of adjustable-rate residential mortgage loans, partially offset by run-off in the acquired portfolio. Fixed-rate residential mortgage loans increased $68 million in 2015 compared to 2014 and $17 million in 2014 compared to 2013. The Company currently retains in its portfolio most of its originated adjustable-rate and certain fixed-rate residential mortgage loans.

Residential Mortgage Originations

Years ended December 31 (dollars in millions)

Residential Mortgage Originations by Product

Year ended December 31, 2015 (percent)

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People’s United’s loan loss experience within the residential mortgage portfolio continues to be primarily attributable to a small number of loans. The continued performance of the residential mortgage loan portfolio in the future may be adversely impacted by the level and direction of interest rates, consumer preferences and the regional economy.

Consumer Lending

People’s United offers home equity lines of credit (“HELOCs”) and home equity loans, and to a lesser extent, other forms of installment and revolving credit loans. At December 31, 2015, 88% of the consumer loan portfolio was to customers located within the New England states. Future growth of People’s United’s consumer loan portfolio is highly dependent upon economic conditions, the interest rate environment and competitors’ strategies.

As of December 31 (in millions)	2015		2014
Home equity lines of credit	$	1,964.8	$	1,945.9
Home equity loans		188.9		197.2
Other		49.4		57.5
Total consumer	$	2,203.1	$	2,200.6

Asset Quality

Recent Trends

While People’s United continues to adhere to prudent underwriting standards, the loan portfolio is not immune to potential negative consequences arising as a result of general economic weakness and, in particular, a prolonged downturn in the housing market on a national scale as was experienced for much of the period from 2008 to 2012. Decreases in real estate values could adversely affect the value of property used as collateral for loans. In addition, adverse changes in the economy could have a negative effect on the ability of borrowers to make scheduled loan payments, which would likely have an adverse impact on earnings. Further, an increase in loan delinquencies may serve to decrease interest income and adversely impact loan loss experience, resulting in an increased provision and allowance for loan losses.

People’s United actively manages asset quality through its underwriting practices and collection operations. Underwriting practices tend to focus on optimizing the return of a given risk classification while collection operations focus on minimizing losses once an account becomes delinquent. People’s United attempts to minimize losses associated with commercial loans by requiring borrowers to pledge adequate collateral and/or provide for third-party guarantees. Loss mitigation within the residential mortgage loan portfolio is highly dependent on the value of the underlying real estate.

Over the past few years, People’s United experienced an increase in the number of loan modification requests. Certain originated loans whose terms have been modified are considered troubled debt restructurings (“TDRs”). Acquired loans that are modified are not considered for TDR classification provided they are evaluated for impairment on a pool basis. Originated loans are considered TDRs if the borrower is experiencing financial difficulty and is afforded a concession by People’s United, such as, but not limited to: (i) payment deferral; (ii) a reduction of the stated interest rate for the remaining contractual life of the loan; (iii) an extension of the loan’s original contractual term at a stated interest rate lower than the current market rate for a new loan with similar risk; (iv) capitalization of interest; or (v) forgiveness of principal or interest.

OCC guidance requires that loans subject to a borrower’s discharge from personal liability following a Chapter 7 bankruptcy be treated as TDRs, included in non-performing loans and written down to the estimated collateral value, regardless of delinquency status. Included in TDRs at December 31, 2015 are $26.4 million of such loans. Of this amount, $18.5 million, or 70%, were less than 90 days past due on their payments as of that date.

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TDRs may either be accruing or placed on non-accrual status (and reported as non-performing loans) depending upon the loan’s specific circumstances, including the nature and extent of the related modifications. TDRs on non-accrual status remain classified as such until the loan qualifies for return to accrual status. Loans qualify for return to accrual status once they have demonstrated performance with the restructured terms of the loan agreement for a minimum of six months for commercial loans or, in the case of a retail loan, when the loan is less than 90 days past due. Loans may continue to be reported as TDRs after they are returned to accrual status.

During 2015, we performed 78 loan modifications that were not classified as TDRs. The balances of the loans at the time of the respective modifications totaled $162.8 million. In each case, we concluded that the modification did not result in the granting of a concession based on one or more of the following considerations: (i) the receipt of additional collateral (the nature and amount of which was deemed to serve as adequate compensation for other terms of the restructuring) and/or guarantees; (ii) the borrower having access to funds at a market rate for debt with similar risk characteristics as the restructured debt; and (iii) the restructuring resulting in a delay in payment that is insignificant in relation to the other terms of the obligation. See Note 4 to the Consolidated Financial Statements for additional disclosures relating to TDRs.

In October 2012, the FDIC adopted a final rule, which became effective April 1, 2013, that (i) revised the definitions of certain higher-risk assets used for deposit insurance assessment purposes, including leveraged loans (which are referred to as “higher-risk commercial and industrial loans”) and selected consumer loans (which are referred to as “higher-risk consumer loans”) and (ii) clarified when an asset must be classified as higher-risk. A consumer loan (residential mortgage loans and consumer loans for People’s United) is considered higher-risk if the probability of default on such loan, as determined using regulatory-defined historical two-year stress periods, is greater than 20%.

Portfolio Risk Elements—Residential Mortgage Lending

People’s United does not actively engage in subprime mortgage lending, which historically has been the riskiest sector of the residential housing market. People’s United has virtually no exposure to subprime loans, or to similarly high-risk Alt-A loans and structured investment vehicles. While no standard definition of “subprime” exists within the industry, the Company has generally defined subprime as borrowers with credit scores of 660 or less, either at or subsequent to origination.

At December 31, 2015, the loan portfolio included $1.1 billion of interest-only residential mortgage loans, of which less than $1 million are stated income loans (which People’s United has not offered since mid-2007). People’s United began originating interest-only residential mortgage loans in March 2003. The underwriting guidelines and requirements for such loans are generally more restrictive than those applied to other types of residential mortgage loans. People’s United has not originated interest-only residential mortgage loans that permit negative amortization or optional payment amounts. Amortization of an interest-only residential mortgage loan begins after the initial interest rate changes (e.g. after 5 years for a 5/1 adjustable-rate mortgage). In general, People’s United’s underwriting guidelines for residential mortgage loans require the following: (i) properties must be single-family and owner-occupied primary residences; (ii) lower loan-to-value (“LTV”) ratios (less than 60% on average); (iii) higher credit scores (greater than 700 on average); and (iv) sufficient post-closing reserves.

Updated estimates of property values are obtained from an independent third-party for residential mortgage loans 90 days past due. At December 31, 2015, non-performing residential mortgage loans totaling $0.7 million had current LTV ratios of more than 100%. At December 31, 2015, the weighted average LTV ratio and FICO score for the residential mortgage loan portfolio were 63% and 753, respectively.

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The Company continues to monitor its foreclosure policies and procedures to ensure ongoing compliance with applicable industry standards. We believe that our established procedures for reviewing foreclosure affidavits and validating information contained in related loan documentation are sound and consistently applied, and that our foreclosure affidavits are accurate. As a result, People’s United has not found it necessary to interrupt or suspend foreclosure proceedings. We have also considered the effect of representations and warranties that we made to third-party investors in connection with whole loan sales, and believe our representations and warranties were true and correct and do not expose the Company to any material loss.

During 2015, the Company repurchased from GSEs and other parties a total of three residential mortgage loans that we had previously sold to the GSEs and other parties. The balances of the loans at the time of the respective repurchases totaled $0.5 million and related fees and expenses incurred totaled less than $0.1 million. During that same time period, the Company issued 19 investor refunds, totaling less than $0.1 million, under contractual recourse agreements. Based on the limited number of repurchase requests the Company has historically received, the immaterial cost associated with such repurchase requests and management’s view that this past experience is consistent with our current and near-term estimate of such exposure, the Company has established a reserve for such repurchase requests, which totaled $0.5 million as of December 31, 2015.

The aforementioned foreclosure issues and the potential for additional legal and regulatory action could impact future foreclosure activities, including lengthening the time required for residential mortgage lenders, including the Bank, to initiate and complete the foreclosure process. In recent years, foreclosure timelines have increased as a result of, among other reasons: (i) delays associated with the significant increase in the number of foreclosure cases as a result of the economic crisis; (ii) additional consumer protection initiatives related to the foreclosure process; and (iii) voluntary and/or mandatory programs intended to permit or require lenders to consider loan modifications or other alternatives to foreclosure. Further increases in the foreclosure timeline may have an adverse effect on collateral values and our ability to minimize losses.

Portfolio Risk Elements—Home Equity Lending

The majority of our HELOCs have an initial draw period of 9  ¹/₂ years followed by a 20-year repayment phase. During the initial draw period, interest-only payments are required, after which the disbursed balance is fully amortized over a 20-year repayment term. HELOCs carry variable rates indexed to the Prime Rate with a lifetime interest rate ceiling and floor, and are secured by first or second liens on the borrower’s primary residence. The rate used to qualify borrowers is the Prime Rate plus 3.00%, even though the initial rate may be substantially lower. The maximum LTV ratio is 80% on a single-family property, including a condominium, and 70% on a two-family property. Lower LTV ratios are required on larger line amounts. The minimum FICO credit score is 680. The borrower has the ability to convert the entire balance or a portion of the balance to a fixed-rate term loan during the draw period. There is a limit of three term loans that must be fully amortized over a term not to exceed the original HELOC maturity date.

A smaller portion of our HELOC portfolio has an initial draw period of 10 years with a variable-rate interest-only payment, after which there is a 5-year amortization period. An additional small portion of our HELOC portfolio has a 5-year draw period which, at our discretion, may be renewed for an additional 5-year interest-only draw period.

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The following table sets forth, as of December 31, 2015, the committed amount of HELOCs scheduled to have the draw period end during the years shown:

December 31, (in millions)	Credit Lines
2016	$	191.9
2017		295.2
2018		301.2
2019		138.3
2020		237.1
Later years		2,529.6
Total	$	3,693.3

More than 90% of our HELOCs are presently in their draw period. Although converted amortizing payment loans represent only a small portion of the portfolio, our default and delinquency statistics indicate a higher level of occurrence for such loans when compared to HELOCs that are still in the draw period.

Delinquency statistics for the HELOC portfolio as of December 31, 2015 are as follows:

	Portfolio Balance		Delinquencies
(dollars in millions)			Amount		Percent
HELOC status:
Still in draw period	$	1,776.0	$	12.6		0.71	%
Amortizing payment		188.8		11.1		5.86

For the three months ended December 31, 2015, 36% of our borrowers with balances outstanding under HELOCs paid only the minimum amount due.

The majority of home equity loans fully amortize over terms ranging from 5 to 20 years. Home equity loans are limited to first or second liens on a borrower’s primary residence. The maximum LTV ratio is 80% on a single-family property, including a condominium, and 70% on a two-family property. Lower LTV ratios are required on larger line amounts.

We are not able, at this time, to develop statistics for the entire home equity portfolio (both HELOCs and home equity loans) with respect to first liens serviced by third parties that have priority over our junior liens, as lien position data has not historically been captured on our loan servicing systems. As of December 31, 2015, full and complete first lien position data was not readily available for 38% of the home equity portfolio. Effective January 2011, we began tracking lien position data for all new originations and our collections department continues to add lien position data once a loan reaches 75 days past due in connection with our updated assessment of combined loan-to-value (“CLTV”) exposure, which takes place for loans 90 days past due. In addition, when we are notified that the holder of a superior lien has commenced a foreclosure action, our home equity account is identified in the collections system for ongoing monitoring of the legal action. As of December 31, 2015, the portion of the home equity portfolio more than 90 days past due with a CLTV greater than 80% was $6.6 million.

As of December 31, 2015, full and complete first lien position data was readily available for 62%, or $1.3 billion, of the home equity portfolio. Of that total, 39%, or $510.8 million, are in a junior lien position. We estimate that of those junior liens, 35%, or $178.8 million, are held or serviced by others.

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When the first lien is held by a third party, we can, in some cases, obtain an indication that a first lien is in default through information reported to credit bureaus. However, because more than one mortgage may be reported in a borrower’s credit report and there may not be a corresponding property address associated with reported mortgages, we are often unable to associate a specific first lien with our junior lien. As of December 31, 2015, there were 31 loans totaling $2.3 million for which we have received notification that the holder of a superior lien has commenced foreclosure action. For 21 of the loans (totaling $1.8 million), our second lien position was performing at the time such foreclosure action was commenced. There was no estimated loss related to those 21 loans as of December 31, 2015. It is important to note that the percentage of new home equity originations for which we hold the first lien has increased steadily from approximately 40% in 2009 to approximately 60% as of December 31, 2015.

We believe there are several factors that serve to mitigate the potential risk associated with the limitations on available first lien data. Most importantly, our underwriting guidelines for home equity loans, which have been, and continue to be, consistently applied, generally require the following: (i) properties located within our geographic footprint; (ii) lower LTV ratios; and (iii) higher credit scores. Notwithstanding the maximum LTV ratios and minimum FICO scores discussed previously, actual LTV ratios at origination were less than 60% on average and current FICO scores of our borrowers are greater than 750 on average. In addition, as of December 31, 2015, 91% of the portfolio balance relates to originations that occurred since 2005, which is generally recognized as the peak of the recent housing bubble. We believe these factors are a primary reason for the portfolio’s relatively low level of non-performing loans and net loan charge-offs, both in terms of absolute dollars and as a percentage of average total loans.

Each month, all home equity and second mortgage loans greater than 180 days past due (regardless of our lien position) are analyzed in order to determine the amount by which the balance outstanding (including any amount subject to a first lien) exceeds the underlying collateral value. To the extent a shortfall exists, a charge-off is recognized. This charge-off activity is reflected in our established allowance for loan losses for home equity and second mortgage loans as part of the component attributable to historical portfolio loss experience, which considers losses incurred over the most recent 12-month period. While the limitations on available first lien data could impact the accuracy of our loan loss estimates, we believe that our methodology results in an allowance for loan losses that appropriately estimates the inherent probable losses within the portfolio, including those loans originated prior to January 2011 for which certain lien position data is not available.

As of December 31, 2015, the weighted average CLTV ratio and FICO score for the home equity portfolio were 56% and 759, respectively.

Portfolio Risk Elements—Commercial Real Estate Lending

In general, construction loans originated by People’s United are used to finance improvements to commercial, industrial or residential property. Repayment is typically derived from the sale of the property as a whole, the sale of smaller individual units, or by a take-out from a permanent mortgage. The term of the construction period generally does not exceed two years. Loan commitments are based on established construction budgets which represent an estimate of total costs to complete the proposed project, including both hard (direct) costs (building materials, labor, etc.) and soft (indirect) costs (legal and architectural fees, etc.). In addition, project costs may include an appropriate level of interest reserve to carry the project through to completion. If established, such interest reserves are determined based on: (i) a percentage of the committed loan amount; (ii) the loan term; and (iii) the applicable interest rate. Regardless of whether a loan contains an interest reserve, the total project cost statement serves as the basis for underwriting and determining which items will be funded by the loan and which items will be funded through borrower equity.

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Construction loans are funded, at the request of the borrower, not more than once per month, based on the extent of work completed, and are monitored, throughout the life of the project, by an independent professional construction engineer and the Company’s commercial real estate lending department. Interest is advanced to the borrower upon request, based upon the progress of the project toward completion. The amount of interest advanced is added to the total outstanding principal under the loan commitment. Should the project not progress as scheduled, the adequacy of the interest reserve necessary to carry the project through to completion is subject to close monitoring by management. Should the interest reserve be deemed to be inadequate, the borrower is required to fund the deficiency. Similarly, once a loan is fully funded, the borrower is required to fund all interest payments.

People’s United’s construction loan portfolio totaled $630.6 million (2% of total loans) at December 31, 2015. The total committed amount at that date, including both the outstanding balance and the unadvanced portion of such loans, was $944.7 million. In some cases, a portion of the total committed amount includes an accompanying interest reserve. At December 31, 2015, construction loans totaling $398.3 million had remaining available interest reserves of $38.9 million. At that date, the Company had construction loans with interest reserves totaling $0.5 million that were on non-accrual status and included in non-performing loans.

Recent economic conditions have resulted in an increase in the number of extension requests for commercial real estate and construction loans, some of which have related repayment guarantees. Modifications of originated commercial real estate loans involving maturity extensions are evaluated according to the Company’s normal underwriting standards and are classified as TDRs if the borrower is experiencing financial difficulty and is afforded a concession by People’s United similar to those discussed previously. People’s United had $9.9 million of restructured construction loans at December 31, 2015.

An extension may be granted to allow for the completion of the project, marketing or sales of completed units, or to provide for permanent financing, and is based on a re-underwriting of the loan and management’s assessment of the borrower’s ability to perform according to the agreed-upon terms. Typically, at the time of an extension, borrowers are performing in accordance with contractual loan terms. Extension terms generally do not exceed 12 to 18 months and typically require that the borrower provide additional economic support in the form of partial repayment, additional collateral or guarantees. In cases where the fair value of the collateral or the financial resources of the borrower are deemed insufficient to repay the loan, reliance may be placed on the support of a guarantee, if applicable. However, such guarantees are never considered the sole source of repayment.

People’s United evaluates the financial condition of guarantors based on the most current financial information available. Most often, such information takes the form of (i) personal financial statements of net worth, cash flow statements and tax returns (for individual guarantors) and (ii) financial and operating statements, tax returns and financial projections (for legal entity guarantors). The Company’s evaluation is primarily focused on various key financial metrics, including net worth, leverage ratios and liquidity. It is the Company’s policy to update such information annually, or more frequently as warranted, over the life of the loan.

While People’s United does not specifically track the frequency with which it has pursued guarantor performance under a guarantee, the Company’s underwriting process, both at origination and upon extension, as applicable, includes an assessment of the guarantor’s reputation, creditworthiness and willingness to perform. Historically, when the Company has found it necessary to seek performance under a guarantee, it has been able to effectively mitigate its losses.

In considering the impairment status of such loans, an evaluation is made of the collateral and future cash flow of the borrower as well as the anticipated support of any repayment guarantor. In the event that the guarantor is unwilling or unable to perform, a legal remedy is pursued. When performance under the loan terms is deemed to be uncertain, including performance of the guarantor, all or a portion of the loan may be charged-off, typically based on the fair value of the collateral securing the loan.

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Allowance and Provision for Loan Losses

The allowance for loan losses is established through provisions for loan losses charged to income. Losses on loans, including impaired loans, are charged to the allowance for loan losses when all or a portion of a loan is deemed to be uncollectible. Recoveries of loans previously charged off are credited to the allowance for loan losses when realized.

People’s United maintains the allowance for loan losses at a level that is deemed to be appropriate to absorb probable losses inherent in the respective loan portfolios, based on a quarterly evaluation of a variety of factors. These factors include, but are not limited to: (i) People’s United’s historical loan loss experience and recent trends in that experience; (ii) risk ratings assigned by lending personnel to commercial real estate loans, commercial and industrial loans, and equipment financing loans, and the results of ongoing reviews of those ratings by People’s United’s independent loan review function; (iii) an evaluation of delinquent and non-performing loans and related collateral values; (iv) the probability of loss in view of geographic and industry concentrations and other portfolio risk characteristics; (v) the present financial condition of borrowers; and (vi) current economic conditions.

For a more detailed discussion of the Company’s allowance for loan losses methodology and related policies, see Note 1 to the Consolidated Financial Statements.

Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected are initially recorded at fair value without recording an allowance for loan losses. Fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a market-based discount rate to those cash flows. Acquired loans are generally accounted for on a pool basis, with pools formed based on the loans’ common risk characteristics, such as loan collateral type and accrual status. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows.

Under the accounting model for acquired loans, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield”, is accreted into interest income over the life of the loans in each pool using the effective yield method. Accordingly, acquired loans are not subject to classification as non-accrual in the same manner as originated loans. Rather, acquired loans are considered to be accruing loans because their interest income relates to the accretable yield recognized at the pool level and not to contractual interest payments at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “nonaccretable difference”, includes estimates of both the impact of prepayments and future credit losses expected to be incurred over the life of the loans in each pool. As such, charge-offs on acquired loans are first applied to the nonaccretable difference and then to any allowance for loan losses recognized subsequent to acquisition. A decrease in expected cash flows in subsequent periods may indicate that the loan pool is impaired, which would require the establishment of an allowance for loan losses by a charge to the provision for loan losses. At December 31, 2015 and 2014, the allowance for loan losses on acquired loans was $8.1 million and $10.2 million, respectively.

Selected asset quality metrics presented below distinguish between the ‘originated’ portfolio and the ‘acquired’ portfolio. All loans acquired in connection with acquisitions comprise the acquired loan portfolio; all other loans of the Company comprise the originated portfolio, including originations subsequent to the respective acquisition dates.

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Provision and Allowance for Loan Losses

The following table presents the activity in the allowance for loan losses and ratios:

Years ended December 31 (dollars in millions)	2015			2014			2013			2012			2011
Allowance for loan losses on originated loans:
Balance at beginning of period	$	188.1		$	177.5		$	177.5		$	175.5		$	172.5
Charge-offs:
Commercial:
Commercial real estate		(3.9	)		(11.3	)		(10.1	)		(15.8	)		(21.7	)
Commercial and industrial		(9.8	)		(9.4	)		(16.8	)		(11.2	)		(12.6	)
Equipment financing		(6.4	)		(1.6	)		(2.8	)		(4.6	)		(9.0	)
Total		(20.1	)		(22.3	)		(29.7	)		(31.6	)		(43.3	)
Retail:
Residential mortgage		(2.5	)		(3.6	)		(6.5	)		(7.2	)		(7.4	)
Home equity		(4.1	)		(5.5	)		(7.2	)		(6.4	)		(3.8	)
Other consumer		(1.3	)		(2.0	)		(2.3	)		(2.7	)		(3.6	)
Total		(7.9	)		(11.1	)		(16.0	)		(16.3	)		(14.8	)
Total charge-offs		(28.0	)		(33.4	)		(45.7	)		(47.9	)		(58.1	)
Recoveries:
Commercial:
Commercial real estate		1.1			0.3			1.2			1.3			0.5
Commercial and industrial		1.4			2.2			1.7			1.2			1.0
Equipment financing		2.4			1.1			0.8			0.7			0.2
Total		4.9			3.6			3.7			3.2			1.7
Retail:
Residential mortgage		1.1			1.3			0.7			0.8			1.0
Home equity		0.8			0.5			0.8			1.0			0.4
Other consumer		0.5			0.6			1.0			1.5			1.7
Total		2.4			2.4			2.5			3.3			3.1
Total recoveries		7.3			6.0			6.2			6.5			4.8
Net loan charge-offs		(20.7	)		(27.4	)		(39.5	)		(41.4	)		(53.3	)
Provision for loan losses		35.5			38.0			39.5			43.4			56.3
Balance at end of period	$	202.9		$	188.1		$	177.5		$	177.5		$	175.5
Allowance for loan losses on acquired loans:
Balance at beginning of period	$	10.2		$	10.3		$	10.5		$	7.4		$	—
Charge-offs		—			(2.7	)		(4.4	)		(2.7	)		—
Provision for loan losses		(2.1	)		2.6			4.2			5.8			7.4
Balance at end of period	$	8.1		$	10.2		$	10.3		$	10.5		$	7.4
Commercial originated allowance for loan losses as a percentage of originated commercial loans		0.90	%		0.91	%		0.95	%		1.13	%		1.39	%
Retail originated allowance for loan losses as a percentage of originated retail loans		0.28			0.27			0.30			0.36			0.29
Total originated allowance for loan losses as a percentage of:
Originated loans		0.73			0.74			0.78			0.91			1.05
Originated non-performing loans		127.3			95.5			81.9			70.3			59.7

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The provision for loan losses on originated loans totaled $35.5 million in 2015, reflecting net loan charge-offs of $20.7 million (including $8.8 million against previously-established specific reserves) and a $23.6 million increase in the originated allowance for loan losses in response to growth in both the commercial and residential mortgage loan portfolios. The provision for loan losses on originated loans totaled $38.0 million in 2014, reflecting net loan charge-offs of $27.4 million (including $14.4 million against previously-established specific reserves) and a $25.0 million increase in the originated allowance for loan losses due to growth in both the commercial and residential mortgage loan portfolios. The originated allowance for loan losses as a percentage of originated loans was 0.73% at December 31, 2015 and 0.74% at December 31, 2014.

The provision for loan losses on acquired loans in 2015 reflects an allowance reversal while the provision for loan losses on acquired loans in the year-ago period reflects net loan charge-offs of $2.7 million, all of which carried previously-established specific reserves, and a $0.1 million decrease in the acquired allowance for loan losses.

Loan Charge-Offs

The Company’s charge-off policies, which comply with standards established by banking regulators, are consistently applied from period to period. Charge-offs are recorded on a monthly basis. Partially charged-off loans continue to be evaluated on a monthly basis and additional charge-offs or loan loss provisions may be recorded on the remaining loan balance based on the same criteria.

For unsecured consumer loans, charge-offs are generally recorded when the loan is deemed to be uncollectible or 120 days past due, whichever occurs first. For consumer loans secured by real estate, including residential mortgage loans, charge-offs are generally recorded when the loan is deemed to be uncollectible or 180 days past due, whichever occurs first, unless it can be clearly demonstrated that repayment will occur regardless of the delinquency status. Factors that demonstrate an ability to repay may include: (i) a loan that is secured by adequate collateral and is in the process of collection; (ii) a loan supported by a valid guarantee or insurance; or (iii) a loan supported by a valid claim against a solvent estate.

For commercial loans, a charge-off is recorded when the Company determines that it will not collect all amounts contractually due based on the fair value of the collateral less cost to sell, or the present value of expected future cash flows.

The decision whether to charge-off all or a portion of a loan rather than to record a specific or general loss allowance is based on an assessment of all available information that aids in determining the loan’s net realizable value. Typically this involves consideration of both (i) the fair value of any collateral securing the loan, including whether the estimate of fair value has been derived from an appraisal or other market information and (ii) other factors affecting the likelihood of repayment, including the existence of guarantees and insurance. If the amount by which the Company’s recorded investment in the loan exceeds its net realizable value is deemed to be a confirmed loss, a charge-off is recorded. Otherwise, a specific or general reserve is established, as applicable.

Net loan charge-offs as a percentage of average total loans equaled 0.08% in 2015, 0.12% in 2014 and 0.19% in 2013. The comparatively low level of net loan charge-offs in recent years, in terms of absolute dollars and as a percentage of average total loans, may not be sustainable in the future.

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Net Loan Charge-Offs as a Percentage of Average Total Loans

Years ended December 31	2015			2014			2013			2012			2011
Commercial:
Commercial real estate		0.03	%		0.15	%		0.16	%		0.24	%		0.30	%
Commercial and industrial		0.11			0.11			0.26			0.18			0.26
Equipment financing		0.14			0.02			0.08			0.19			0.44
Retail:
Residential mortgage		0.03			0.05			0.15			0.17			0.21
Home equity		0.16			0.24			0.31			0.26			0.17
Other consumer		1.21			1.87			1.29			0.93			0.93
Total portfolio		0.08	%		0.12	%		0.19	%		0.21	%		0.28	%

The following table presents, by class of loan, the allocation of the allowance for loan losses on originated loans and the percent of loans in each class to total loans:

	2015					2014					2013					2012					2011
As of December 31 (dollars in millions)	Amount		Percent of Loan Portfolio			Amount		Percent of Loan Portfolio			Amount		Percent of Loan Portfolio			Amount		Percent of Loan Portfolio			Amount		Percent of Loan Portfolio
Commercial:
Commercial real estate	$	73.1		35.3	%	$	63.8		35.4	%	$	65.0		36.6	%	$	60.0		33.6	%	$	70.5		35.2	%
Commercial and industrial		80.0		27.3			78.2		27.0			72.5		25.8			75.5		27.8			69.4		26.2
Equipment financing		28.7		10.4			27.6		10.8			21.0		10.6			22.0		10.8			20.5		9.9
Retail:
Residential mortgage		11.2		19.2			9.2		18.5			10.0		18.1			12.0		17.9			8.8		17.8
Home equity		8.9		7.6			8.3		8.1			8.0		8.6			6.7		9.4			4.3		10.1
Other consumer		1.0		0.2			1.0		0.2			1.0		0.3			1.3		0.5			2.0		0.8
Total originated allowance for loan losses	$	202.9		100.0	%	$	188.1		100.0	%	$	177.5		100.0	%	$	177.5		100.0	%	$	175.5		100.0	%

The allocation of the allowance for loan losses on originated loans at December 31, 2015 reflects management’s assessment of credit risk and probable loss within each portfolio. This assessment is based on a variety of internal and external factors including, but not limited to, the likelihood and severity of loss, portfolio growth and related risk characteristics, and current economic conditions. With respect to the originated portfolio, an allocation of a portion of the allowance to one loan segment does not preclude its availability to absorb losses in another loan segment. Management believes that the level of the allowance for loan losses at December 31, 2015 is appropriate to cover probable losses.

Non-Performing Assets

A loan is generally considered “non-performing” when it is placed on non-accrual status. A loan is generally placed on non-accrual status when it becomes 90 days past due as to interest or principal payments. Past due status is based on the contractual payment terms of the loan. A loan may be placed on non-accrual status before it reaches 90 days past due if such loan has been identified as presenting uncertainty with respect to the collectability of interest and principal. A loan past due 90 days or more may remain on accruing status if such loan is both well secured and in the process of collection.

All previously accrued but unpaid interest on non-accrual loans is reversed from interest income in the period in which the accrual of interest is discontinued. Interest payments received on non-accrual loans (including impaired loans) are generally applied as a reduction of principal if future collections are doubtful, although such interest payments may be recognized as income. A loan remains on non-accrual status until the factors that indicated doubtful collectability no longer exist or until a loan is determined to be uncollectible and is charged off against the allowance for loan losses. There were no loans past due 90 days or more and still accruing interest at December 31, 2015 or 2014.

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Non-Performing Assets

As of December 31 (dollars in millions)	2015			2014			2013			2012			2011
Originated non-performing loans:
Commercial:
Commercial and industrial	$	44.9		$	55.8		$	43.8		$	54.8		$	59.2
Commercial real estate		30.2			60.2			70.8			84.4			106.7
Equipment financing		27.5			25.4			23.2			27.2			42.9
Total		102.6			141.4			137.8			166.4			208.8
Retail:
Residential mortgage		37.2			37.6			58.9			65.0			68.9
Home equity		19.5			17.9			19.8			21.0			15.8
Other consumer		0.1			0.1			0.1			0.3			0.3
Total		56.8			55.6			78.8			86.3			85.0
Total originated non-performing loans (1)		159.4			197.0			216.6			252.7			293.8
REO:
Residential		7.1			13.6			13.6			17.2			10.9
Commercial		5.5			11.0			13.1			11.4			15.9
Total REO		12.6			24.6			26.7			28.6			26.8
Repossessed assets		9.5			2.5			4.5			8.3			16.1
Total non-performing assets	$	181.5		$	224.1		$	247.8		$	289.6		$	336.7
Originated non-performing loans as a percentage of originated loans		0.58	%		0.77	%		0.95	%		1.30	%		1.75	%
Non-performing assets as a percentage of:
Originated loans, REO and repossessed assets		0.66			0.88			1.08			1.48			2.00
Tangible stockholders’ equity and originated allowance for loan losses		6.38			8.24			9.47			9.45			10.47

(1) Reported net of government guarantees totaling $16.9 million, $17.6 million, $19.4 million, $9.7 million and $12.1 million at December 31, 2015, 2014, 2013, 2012 and 2011, respectively. These government guarantees relate, almost entirely, to guarantees provided by the Small Business Administration as well as selected other Federal agencies and represent the carrying value of the loans that are covered by such guarantees, the extent of which (i.e. full or partial) varies by loan. At December 31, 2015, the principal loan classes to which these government guarantees relate are commercial and industrial loans (99%) and commercial real estate loans (1%).

The preceding table excludes acquired loans that are (i) accounted for as purchased credit impaired loans or (ii) covered by an FDIC loss-share agreement (“LSA”) totaling: $27.7 million and $2.3 million, respectively, at December 31, 2015; $100.6 million and $3.0 million, respectively, at December 31, 2014; $138.0 million and $4.5 million, respectively, at December 31, 2013; $173.6 million and $8.0 million, respectively, at December 31, 2012; and $235.2 million and $13.8 million, respectively, at December 31, 2011. Such loans otherwise meet People’s United’s definition of a non-performing loan but are excluded because the loans are included in loan pools that are considered performing and/or credit losses are covered by an FDIC LSA. The discounts arising from recording these loans at fair value were due, in part, to credit quality. The acquired loans are generally accounted for on a pool basis and the accretable yield on the pools is being recognized as interest income over the life of the loans based on expected cash flows at the pool level.

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Total non-performing assets decreased $42.6 million from December 31, 2014 and equaled 0.66% of originated loans, REO and repossessed assets at December 31, 2015. The decrease in total non-performing assets from December 31, 2014 primarily reflects decreases in non-performing commercial real estate loans of $30.0 million, non-performing commercial and industrial loans of $10.9 million and REO of $12.0 million, partially offset by an increase in repossessed assets of $7.0 million.

All loans and REO acquired in the Butler Bank acquisition (completed in 2010) are subject to an FDIC LSA, which provides for coverage by the FDIC, up to certain limits, on all such ‘covered assets’. The FDIC is obligated to reimburse the Company for 80% of any future losses on covered assets up to $34 million. The Company will reimburse the FDIC for 80% of recoveries with respect to losses for which the FDIC paid the Company 80% reimbursement under the loss-sharing coverage.

In addition to the originated non-performing loans discussed above, People’s United has also identified $577.1 million in originated potential problem loans at December 31, 2015. Originated potential problem loans represent loans that are currently performing, but for which known information about possible credit deterioration on the part of the related borrowers causes management to have concerns as to the ability of such borrowers to comply with contractual loan repayment terms and which may result in the disclosure of such loans as non-performing at some time in the future. The originated potential problem loans are generally loans that, although performing, have been classified as “substandard” in accordance with People’s United’s loan rating system, which is consistent with guidelines established by banking regulators.

At December 31, 2015, originated potential problem loans consisted of equipment financing loans ($261.0 million), commercial and industrial loans ($218.0 million) and commercial real estate loans ($98.1 million). Such loans are closely monitored by management and have remained in performing status for a variety of reasons including, but not limited to, delinquency status, borrower payment history and fair value of the underlying collateral. Management cannot predict the extent to which economic conditions may worsen or whether other factors may adversely impact the ability of these borrowers to make payments. Accordingly, there can be no assurance that originated potential problem loans will not become 90 days or more past due, be placed on non-accrual status, be restructured, or require additional provisions for loan losses.

The levels of non-performing assets and potential problem loans are expected to fluctuate in response to changing economic and market conditions, and the relative sizes of the respective loan portfolios, along with management’s degree of success in resolving problem assets. While management takes a proactive approach with respect to the identification and resolution of problem loans, the level of non-performing assets may increase in the future.

Off-Balance-Sheet Arrangements

Detailed discussions pertaining to People’s United’s off-balance-sheet arrangements are included in the following sections: Funding, Liquidity, Stockholders’ Equity and Dividends, and Market Risk Management.

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Funding

People’s United’s primary funding sources are deposits and stockholders’ equity, which represent 85% of total assets at December 31, 2015. Borrowings and notes and debentures also are available sources of funding.

Deposits

People’s United’s strategy is to focus on increasing deposits by providing a wide range of convenient services to commercial, retail, business and wealth management customers. People’s United provides customers access to their deposits through 396 branches, including 150 full-service Stop & Shop supermarket branches, 594 ATMs, telephone banking and an Internet banking site.

	2015					2014					2013
As of December 31 (dollars in millions)	Amount		Weighted Average Rate			Amount		Weighted Average Rate			Amount		Weighted Average Rate
Non-interest-bearing	$	6,178.6		—	%	$	5,655.1		—	%	$	5,312.2		—	%
Money market		7,648.3		0.29			8,396.2		0.22			6,513.8		0.29
Interest-bearing checking		5,572.5		0.16			2,989.4		0.14			2,713.8		0.13
Savings		4,199.9		0.13			3,866.8		0.16			3,634.6		0.16
Total		17,420.7		0.21			15,252.4		0.19			12,862.2		0.22
Time deposits maturing:
Within 3 months		991.5		0.69			1,254.3		0.63			874.5		0.55
After 3 but within 6 months		679.6		0.86			912.5		0.62			781.4		0.68
After 6 months but within 1 year		1,915.6		1.10			1,306.7		0.79			1,151.5		0.71
After 1 but within 2 years		636.1		1.06			1,341.0		1.36			799.7		1.31
After 2 but within 3 years		153.5		0.98			230.9		1.40			520.6		2.18
After 3 but within 4 years		101.9		1.46			85.5		1.07			173.3		1.67
After 4 but within 5 years		339.6		1.81			96.2		1.51			77.7		1.13
After 5 years		0.3		2.44			3.6		2.45			4.2		2.45
Total		4,818.1		1.03			5,230.7		0.91			4,382.9		1.00
Total deposits	$	28,417.4		0.30	%	$	26,138.2		0.29	%	$	22,557.3		0.32	%

Deposits equaled 73%, 73% and 68% of total assets at December 31, 2015, 2014 and 2013, respectively. Deposits and stockholders’ equity constituted 86%, 87% and 83% of People’s United’s funding base at December 31, 2015, 2014 and 2013, respectively.

The expansion of People’s United’s branch network and its commitment to developing full-service relationships with its customers are integral components of People’s United’s strategy to leverage the success of its supermarket banking initiative, expand market share and continue growing deposits. At December 31, 2015, People’s United’s network of Stop & Shop branches held $4.2 billion in total deposits and deposits in supermarket branches open for more than one year averaged $29 million per store.

Non-interest-bearing deposits are an important source of low-cost funding and fee income for People’s United. In addition, People’s United believes that checking accounts represent one of the core relationships between a financial institution and its customers, and it is from these relationships that cross-selling of other financial services can be achieved. Non-interest-bearing deposits equaled 22%, 22% and 23% of total deposits at December 31, 2015, 2014 and 2013, respectively. Time deposits of $100,000 or more totaled $2.1 billion at December 31, 2015, of which $426 million mature within three months, $310 million mature after three months but within six months, $936 million mature after six months but within one year and $471 million mature after one year. Included in total deposits at December 31, 2015 are $2.6 billion of brokered deposits, comprised of interest-bearing checking ($1.6 billion), money market ($527 million) and time ($469 million). See Note 8 to the Consolidated Financial Statements for additional information concerning deposits.

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Total Deposits

As of December 31 (dollars in millions)

The following table presents People’s United’s time deposits by rate category:

As of December 31 (in millions)	2015
0.50% or less	$	1,535.7
0.51% to 1.00%		956.1
1.01% to 1.50%		1,453.8
1.51% to 2.00%		425.5
2.01% to 2.50%		230.9
2.51% to 3.00%		206.4
3.01% and greater		9.7
Total	$	4,818.1

The following table presents, by rate category, the remaining period to maturity of time deposits outstanding as of December 31, 2015:

	Period to Maturity from December 31, 2015
(in millions)	Within three months		Over three to six months		Over six months to one year		Over one to two years		Over two to three years		Over three to four years		Over four to five years		Over five years		Total
0.50% or less	$	535.6	$	387.8	$	452.9	$	156.6	$	2.7	$	—	$	0.1	$	—	$	1,535.7
0.51% to 1.00%		105.3		138.9		425.2		127.2		85.3		38.2		36.0		—		956.1
1.01% to 1.50%		307.9		43.9		772.5		242.1		61.3		11.1		15.0		—		1,453.8
1.51% to 2.00%		5.9		4.8		30.1		84.0		3.7		52.2		244.8		—		425.5
2.01% to 2.50%		6.5		9.5		146.1		24.6		—		0.2		43.7		0.3		230.9
2.51% to 3.00%		27.4		88.9		88.3		1.4		0.2		0.2		—		—		206.4
3.01% and greater		2.9		5.8		0.5		0.2		0.3		—		—		—		9.7
Total	$	991.5	$	679.6	$	1,915.6	$	636.1	$	153.5	$	101.9	$	339.6	$	0.3	$	4,818.1

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Borrowings

People’s United’s primary source for borrowings are advances from the 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. Customer repurchase agreements primarily consist of transactions with commercial and municipal customers.

At December 31, 2015, the Bank’s total borrowing capacity from (i) the FHLB of Boston and the FRB-NY for advances and (ii) repurchase agreements was $10.5 billion based on the level of qualifying collateral available for these borrowings. In addition, the Bank had unsecured borrowing capacity of $1.1 billion at that date. FHLB advances are secured by the Bank’s investment in FHLB stock and by a security agreement that requires the Bank to maintain, as collateral, sufficient qualifying assets not otherwise pledged (principally single-family residential mortgage loans, HELOCs, home equity loans and commercial real estate loans).

At December 31, 2015, total borrowings equaled 11% of total assets compared to 10% at December 31, 2014 and 15% at December 31, 2013. FHLB advances, customer repurchase agreements and federal funds purchased represented 9%, 1% and 1% of total assets at December 31, 2015, respectively. See Note 9 to the Consolidated Financial Statements for additional information concerning borrowings.

	2015					2014					2013
As of December 31 (dollars in millions)	Amount		Weighted Rate			Amount		Weighted Rate			Amount		Weighted Rate
Fixed-rate FHLB advances maturing:
Within 1 month	$	2,750.0		0.44	%	$	1,825.0		0.26	%	$	1,950.0		0.19	%
After 1 month but within 1 year		450.0		0.57			200.2		0.24			1,500.0		0.21
After 2 but within 3 years		258.6		2.71			—		—			0.5		4.37
After 3 but within 4 years		—		—			261.1		2.71			—		—
After 4 but within 5 years		—		—			—		—			263.7		2.71
After 5 years		5.2		1.34			5.4		1.33			5.6		1.33
Total FHLB advances		3,463.8		0.63			2,291.7		0.54			3,719.8		0.38
Customer repurchase agreements maturing:
Within 1 month		469.5		0.19			486.0		0.18			501.2		0.20
Federal funds purchased maturing:
Within 1 month		374.0		0.32			913.0		0.15			825.0		0.16
Other borrowings maturing:
Within 1 year		—		—			1.0		1.75			10.0		0.08
After 1 but within 2 years		—		—			—		—			1.0		1.75
Total other borrowings		—		—			1.0		1.75			11.0		0.23
Total borrowings	$	4,307.3		0.55	%	$	3,691.7		0.39	%	$	5,057.0		0.33	%

Notes and Debentures

Notes and debentures totaled $1.0 billion, $1.0 billion and $639 million at December 31, 2015, 2014 and 2013, respectively, and equaled 3%, 3% and 2% of total assets, respectively. See Note 10 to the Consolidated Financial Statements for additional information concerning notes and debentures.

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Contractual Cash Obligations

The following table is a summary of People’s United’s contractual cash obligations, other than deposit liabilities. Additional information concerning the Company’s contractual cash obligations is included in Notes 8, 9, 10 and 19 to the Consolidated Financial Statements. Purchase obligations included in the table below represent those agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transactions. A substantial majority of People’s United’s purchase obligations are renewable on a year-to-year basis. As such, the purchase obligations included in this table only reflect the contractual commitment.

	Payments Due by Period
As of December 31, 2015 (in millions)	Total		Less Than 1 Year		1-3 Years		4-5 Years		After 5 Years
Borrowings	$	4,307.3	$	4,043.5	$	258.6	$	—	$	5.2
Notes and debentures		1,038.7		—		123.7		—		915.0
Interest payments on fixed-rate borrowings and notes and debentures (1)		306.7		54.5		82.7		68.6		100.9
Operating leases		391.2		56.5		105.4		89.3		140.0
Purchase obligations		289.9		81.7		108.0		71.6		28.6
Total	$	6,333.8	$	4,236.2	$	678.4	$	229.5	$	1,189.7

(1) Interest payments on floating-rate borrowings and notes and debentures are not included in the table above as the timing and amount of such payments is uncertain. See Notes 9 and 10 to the Consolidated Financial Statements.

Income tax liabilities totaling $2.7 million, including related interest and penalties, are not included in the table above as the timing of their resolution cannot be estimated. Similarly, obligations totaling $74.9 million related to limited partnership affordable housing investments are not included in the above table as the timing of the related capital calls cannot be estimated. See Note 11 to the Consolidated Financial Statements.

Also not included in the table above are expected future net benefit payments related to the Company’s pension and other postretirement plans that are due as follows: $23.1 million in less than one year; $48.9 million in one to three years; $48.0 million in four to five years; and $142.0 million after five years. See Note 16 to the Consolidated Financial Statements.

Liquidity

Liquidity is defined as the ability to generate sufficient cash flows to meet all present and future funding requirements at reasonable costs. Liquidity management addresses both People’s United’s and the Bank’s ability to fund new loans and investments as opportunities arise, to meet customer deposit withdrawals and to repay borrowings and subordinated notes as they mature. People’s United’s, as well as the Bank’s, liquidity positions are monitored daily by management. The Asset and Liability Management Committee (“ALCO”) of the Bank has been authorized by the Board of Directors of People’s United to set guidelines to ensure maintenance of prudent levels of liquidity for People’s United as well as for the Bank. ALCO reports to the Treasury and Finance Committee of the Board of Directors of People’s United.

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Asset liquidity is provided by: cash; short-term investments and securities purchased under agreements to resell; proceeds from maturities, principal repayments and sales of securities; and proceeds from scheduled principal collections, prepayments and sales of loans. In addition, certain securities may be used to collateralize borrowings under repurchase agreements. The Consolidated Statements of Cash Flows present data on cash provided by and used in People’s United’s operating, investing and financing activities. At December 31, 2015, People’s United (parent company) liquid assets included $201 million in debt securities available for sale, $170 million in cash and $100 million in intercompany short-term advances to the Bank while the Bank’s liquid assets included $4.3 billion in debt securities available for sale and $715 million in cash and cash equivalents. Securities available for sale with a fair value of $1.64 billion at December 31, 2015 were pledged as collateral for public deposits and for other purposes.

Liability liquidity is measured by both People’s United’s and the Bank’s ability to obtain deposits and borrowings at cost-effective rates that are diversified with respect to markets and maturities. Deposits, which are considered the most stable source of liability liquidity, totaled $28.4 billion at December 31, 2015 and represented 74% of total funding (the sum of total deposits, total borrowings, notes and debentures, and stockholders’ equity). Borrowings are used to diversify People’s United’s funding mix and to support asset growth. Borrowings and notes and debentures totaled $4.3 billion and $1.0 billion, respectively, at December 31, 2015, representing 11% and 3%, respectively, of total funding at that date.

The Bank’s current available sources of borrowings include: federal funds purchased, advances from the FHLB of Boston and the FRB-NY, and repurchase agreements. At December 31, 2015, the Bank’s total borrowing capacity from (i) the FHLB of Boston and the FRB-NY for advances and (ii) repurchase agreements was $10.5 billion based on the level of qualifying collateral available for these borrowings. In addition, the Bank had unsecured borrowing capacity of $1.1 billion at that date.

Earning Asset Mix	Funding Base
$35.2 billion as of December 31, 2015 (percent)	$38.5 billion as of December 31, 2015 (percent)

At December 31, 2015, the Bank had outstanding commitments to originate loans totaling $1.0 billion and approved, but unused, lines of credit extended to customers totaling $6.0 billion (including $2.0 billion of HELOCs).

The sources of liquidity discussed above are deemed by management to be sufficient to fund outstanding loan commitments and to meet both People’s United’s and the Bank’s other obligations.

Stockholders’ Equity and Dividends

People’s United’s total stockholders’ equity was $4.73 billion at December 31, 2015, a $98.5 million increase from December 31, 2014. This increase primarily reflects net income in 2015 of $260.1 million and net restricted stock and stock option-related transactions totaling $43.2 million in 2015, partially offset by dividends paid in 2015 of $201.2 million. Stockholders’ equity equaled 12.2% of total assets at December 31, 2015 compared to 12.9% at December 31, 2014. Tangible stockholders’ equity equaled 7.2% of tangible assets at December 31, 2015 compared to 7.5% at December 31, 2014.

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In November 2012, People’s United’s Board of Directors authorized the repurchase of common stock. Under this repurchase authorization, up to 10% of the Company’s common stock outstanding, or 33.6 million shares, were to be repurchased, either directly or through agents, in the open market at prices and terms satisfactory to management. During 2013, the Company, completed the repurchase of shares authorized at a total cost of $458.9 million.

People’s United’s total stockholders’ equity was $4.63 billion at December 31, 2014, a $64.7 million increase from December 31, 2013. This increase primarily reflects net income in 2014 of $251.7 million partially offset by dividends paid in 2014 of $196.9 million. Stockholders’ equity equaled 12.9% of total assets at December 31, 2014 compared to 13.8% at December 31, 2013. Tangible stockholders’ equity equaled 7.5% of tangible assets at December 31, 2014 compared to 7.9% at December 31, 2013.

Dividends declared and paid per common share totaled $0.6675, $0.6575 and $0.6475 for the years ended December 31, 2015, 2014 and 2013, respectively. People’s United’s dividend payout ratio (dividends paid as a percentage of net income) for the years ended December 31, 2015, 2014 and 2013 was 77.3%, 78.2% and 88.1%, respectively. People’s United’s operating dividend payout ratio for the year ended December 31, 2015 was 76.6%. The Company’s Board of Directors declared a quarterly dividend on its common stock of $0.1675 per share in January 2016, which was paid on February 15, 2016 to shareholders of record on February 1, 2016.

The Bank paid cash dividends totaling $245 million, $244 million and $232 million to People’s United (parent company) in 2015, 2014 and 2013, respectively, and $68 million in February 2016.

Regulatory Capital Requirements

In July 2013, the U.S. banking agencies published final rules (the “Basel III capital rules”) that established new capital requirements for U.S. financial institutions. When fully phased-in, the Basel III capital rules will: (i) set forth changes in the calculation of risk-weighted assets; (ii) introduce limitations on what is permissible for inclusion in Tier 1 capital; and (iii) require bank holding companies and their bank subsidiaries to maintain substantially more capital, with a greater emphasis on common equity. The Basel III capital rules became effective on January 1, 2015 for both the Company and the Bank.

The Basel III capital rules, among other things: (i) introduce as a new capital measure, CET1 capital; (ii) specify that Tier 1 capital consist of CET1 capital and “Additional Tier 1 Capital” instruments meeting specified requirements; (iii) defines CET1 capital narrowly by requiring that most adjustments to regulatory capital measures be made to CET1 capital and not to the other components of capital; and (iv) expand the scope of the adjustments as compared to prior regulations.

When fully phased-in on January 1, 2019, Basel III capital rules will require U.S. financial institutions to maintain: (i) as a newly adopted international standard, a minimum ratio of CET1 capital to total risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% CET1 capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum ratio of CET1 capital to total risk-weighted assets of at least 7.0%); (ii) a minimum ratio of Tier 1 capital to total risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation); (iii) a minimum ratio of Total (that is, Tier 1 plus Tier 2) capital to total risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% Total capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum Total capital ratio of 10.5% upon full implementation); and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average total assets, as defined.

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The following summary compares People’s United’s and the Bank’s regulatory capital amounts and ratios under the Basel III capital rules. The minimum capital required amounts as of December 31, 2015 are based on the phase-in provisions of the Basel III capital rules. In connection with the adoption of the Basel III capital rules, both the Company and the Bank elected to opt-out of the requirement to include most components of AOCL in CET1 capital. At December 31, 2015, People’s United’s and the Bank’s total risk-weighted assets, as defined, both were $29.6 billion.

	As of December 31, 2015					Minimum Capital Required Basel III Phase-In (2015)					Classification as Well-Capitalized
(dollars in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 Leverage (1):
People’s United		2,898.1		8.0	%	$	1,440.6		4.0	%	$	1,800.8		5.0	%
Bank		3,012.7		8.4			1,431.9		4.0			1,789.8		5.0
Common Equity Tier 1 Capital (2):
People’s United		2,898.1		9.8			1,620.7		4.5			2,341.0		6.5
Bank		3,012.7		10.2			1,610.9		4.5			2,326.8		6.5
Tier 1 Risk-Based Capital (3):
People’s United		2,898.1		9.8			1,778.8		6.0			2,371.7		8.0
Bank		3,012.7		10.2			1,777.3		6.0			2,369.7		8.0
Total Risk-Based Capital (4):
People’s United		3,470.5		11.7			2,371.7		8.0			2,964.6		10.0
Bank		3,726.3		12.6			2,369.7		8.0			2,962.1		10.0

(1) Tier 1 Leverage ratio represents Tier 1 Capital divided by Average Total Assets (less goodwill, other acquisition-related intangibles and other deductions from Common Equity Tier 1 Capital).

(2) Common Equity Tier 1 Capital ratio represents equity capital, as defined, less: (i) after-tax net unrealized gains (losses) on certain securities classified as available for sale; (ii) after-tax net unrealized gains (losses) on securities transferred to held to maturity; (iii) goodwill and other acquisition-related intangible assets; and (iv) the amount recorded in AOCL relating to pension and other postretirement benefits divided by Total Risk-Weighted Assets.

(3) Tier 1 Risk-Based Capital ratio represents CET1 Capital plus Additional Tier 1 Capital instruments (together, “Tier 1 Capital”) divided by Total Risk-Weighted Assets.

(4) Total Risk-Based Capital ratio represents Tier 1 Capital plus subordinated notes and debentures, up to certain limits, and the allowance for loan losses, up to 1.25% of Total Risk-Weighted Assets, divided by Total Risk-Weighted Assets.

Management currently estimates that, as of December 31, 2015, the Company’s and the Bank’s risk-based capital ratios could be negatively impacted by as much as 25-35 basis points on a “fully phased-in” basis. Management will continue to monitor the impact of these and future regulations. See Note 13 to the Consolidated Financial Statements for additional information concerning both the Company’s and the Bank’s regulatory capital amounts and ratios.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk Management

Market risk represents the risk of loss to earnings, capital and the economic values of certain assets and liabilities resulting from changes in interest rates, equity prices and foreign currency exchange rates. The only significant market risk exposure for People’s United at this time is IRR, which is a result of the Company’s core business activities of making loans and accepting deposits.

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Interest Rate Risk

The effective management of IRR is essential to achieving the Company’s financial objectives. Responsibility for overseeing management of IRR resides with ALCO. The goal of ALCO is to generate a stable net interest margin over entire interest rate cycles regardless of changes in either short- or long-term interest rates. Generating earnings by taking excessive IRR is prohibited by the IRR limits established by the Company’s Board of Directors. ALCO manages IRR by using two primary risk measurement techniques: simulation of net interest income and simulation of economic value of equity. These two measurements are complementary and provide both short-term and long-term risk profiles of the Company.

Net Interest Income at Risk Simulation is used to measure the sensitivity of net interest income to changes in market rates over a forward twelve-month period. This simulation captures underlying product behaviors, such as asset and liability re-pricing dates, balloon dates, interest rate indices and spreads, rate caps and floors, as well as other behavioral attributes. The simulation of net interest income also requires a number of key assumptions such as: (i) future balance sheet volume and mix assumptions that are management judgments based on estimates and historical experience; (ii) prepayment projections for loans and securities that are projected under each interest rate scenario using internal and external analytics; (iii) new business loan rates that are based on recent new business origination experience; and (iv) deposit pricing assumptions that are based on historical regression models and management judgment. Combined, these assumptions can be inherently uncertain, and as a result, actual results may differ from simulation forecasts due to the timing, magnitude and frequency of interest rate changes, future business conditions, as well as unanticipated changes in management strategies.

The Company uses two sets of standard scenarios to measure net interest income at risk. Parallel shock scenarios assume instantaneous parallel movements in the yield curve compared to a flat yield curve scenario. Yield curve twist scenarios assume the shape of the curve flattens or steepens instantaneously centered around the 18-month point of the curve, thereby segmenting the yield curve into a “short-end” and a “long-end”. Internal policy regarding IRR simulations currently specifies that for instantaneous parallel shifts of the yield curve, estimated net interest income at risk for the subsequent one-year period should not decline by more than: 7% for a 100 basis point shift; 10% for a 200 basis point shift; and 15% for a 300 basis point shift. Current policy does not specify limits for yield curve twist simulations.

The following tables set forth the estimated percent change in the Company’s net interest income at risk over one-year simulation periods beginning December 31, 2015 and 2014. Given the interest rate environment at those dates, simulations for interest rate declines of more than 25 basis points were not modeled but were considered by the Company as part of its overall management of IRR.

As of December 31 Parallel Shock Rate Change (basis points)	Estimated Percent Change in Net Interest Income
	2015			2014
+300		9.6	%		9.2	%
+200		6.9			6.9
+100		3.7			3.4
-25		(1.3	)		(1.1	)

As of December 31 Yield Curve Twist Rate Change (basis points)	Estimated Percent Change in Net Interest Income
	2015			2014
Short End -25		(0.6	)%		(0.2	)%
Short End +100		1.8			1.1
Short End +200		3.6			2.7
Long End -100		(4.0	)		(4.1	)
Long End +100		2.0			2.6
Long End +200		3.5			4.9

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The net interest income at risk simulation results indicate that at both December 31, 2015 and 2014, the Company is asset sensitive over the twelve-month forecast horizon (i.e. net interest income will increase if market rates rise). This is primarily due to (i) approximately 87% of the Company’s loan portfolio being funded by less rate-sensitive core deposits and (ii) approximately 42% of the Company’s loan portfolio being comprised of Prime and one-month Libor-based floating-rate loans.

The Company’s asset sensitivity increases when the “short-end” rises (as a result of increases in both one-month Libor-based floating-rate loans and core deposits) as well as when the “long-end” rises (as a result of reinvesting the proceeds from loan and securities repayments, and originating new fixed-rate loans at rates higher than the existing portfolio). Based on the Company’s IRR position at December 31, 2015, an immediate 100 basis point parallel increase in interest rates translates to an approximate $37 million increase in net interest income on an annualized basis.

Economic Value of Equity at Risk Simulation is conducted in tandem with net interest income simulations, to ascertain a longer term view of the Company’s IRR position by capturing longer-term re-pricing risk and options risk embedded in the balance sheet. It measures the sensitivity of economic value of equity to changes in interest rates. Economic value of equity at risk simulation values only the current balance sheet and does not incorporate the growth assumptions used for income simulations. As with net interest income modeling, this simulation captures product characteristics such as loan resets, re-pricing terms, maturity dates, rate caps and floors. Key assumptions include loan prepayment speeds, deposit pricing elasticity and non-maturity deposit attrition rates. These assumptions can have significant impacts on valuation results as the assumptions remain in effect for the entire life of each asset and liability. The Company conducts core deposit behavior studies on a periodic basis to support deposit assumptions used in the valuation process. All key assumptions are subject to a periodic review.

Base case economic value of equity at risk is calculated by estimating the net present value of all future cash flows from existing assets and liabilities using current interest rates. The base case scenario assumes that future interest rates remain unchanged. Internal policy currently limits the exposure to a decrease in economic value of equity at risk resulting from instantaneous parallel shifts of the yield curve in the following manner: 5% for a 100 basis point shift; 10% for a 200 basis point shift; and 15% for a 300 basis point shift.

The following table sets forth the estimated percent change in the Company’s economic value of equity at risk, assuming various instantaneous parallel shocks in interest rates. Given the interest rate environment at both December 31, 2015 and 2014, simulations for interest rate declines of more than 25 basis points were not modeled but were considered by the Company as part of its overall management of IRR.

As of December 31 Parallel Shock Rate Change (basis points)	Estimated Percent Change in Economic Value of Equity
	2015			2014
+300		(6.4	)%		(7.8	)%
+200		(2.0	)		(3.3	)
+100		0.5			(0.6	)
-25		(0.7	)		(0.4	)

The Company’s economic value of equity at risk profile indicates that at December 31, 2015, the Company has effectively no economic value of equity risk within a +100 basis points shock but becomes moderately liability sensitive for rate shocks greater than +100 basis points due to lengthening asset duration. The Company’s economic value of equity risk declined at December 31, 2015 as compared to December 31, 2014, reflecting increases in floating-rate loans and core deposits.

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People’s United’s IRR position at December 31, 2015, as set forth in the net interest income at risk and economic value of equity at risk tables above, reflects an asset sensitive net interest income at risk position and a moderately liability sensitive economic value of equity at risk position. From a net interest income perspective, asset sensitivity over the next 12 months is primarily attributable to the effect of the substantial Prime and Libor-based loan balances that are primarily funded by less interest rate sensitive deposits. From an economic value of equity perspective, the increased value of these deposits in a rising interest rate environment is less than the decline in value of fixed-rate assets, which serves to create a moderately liability sensitive risk position for rate shocks greater than +100 basis points. Given the uncertainty of the magnitude, timing and direction of future interest rate movements and the shape of the yield curve, actual results may vary from those predicted by the Company’s models.

Management has established procedures to be followed in the event of an anticipated or actual breach in policy limits. As of December 31, 2015, there were no breaches of the Company’s internal policy limits with respect to either IRR measure. Management utilizes both interest rate measures in the normal course of measuring and managing IRR and believes that each measure is valuable in understanding the Company’s IRR position.

People’s United uses derivative financial instruments, including interest rate swaps, as components of its market risk management (principally to manage IRR). Certain other derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes. At December 31, 2015, People’s United used interest rate swaps to manage IRR associated with certain interest-bearing liabilities.

People’s United has entered into a pay fixed/receive floating interest rate swap to hedge the LIBOR-based floating interest rate payments on the Company’s $125 million subordinated notes (such payments began in February 2012). These notes had a fixed interest rate of 5.80% until February 2012, at which time the interest rate converted to three-month LIBOR plus 68.5 basis points. People’s United has agreed with the swap counterparty to exchange, at specified intervals, the difference between fixed-rate (1.99%) and floating-rate interest amounts calculated based on a notional amount of $125 million. The floating-rate interest amounts received under the swap are calculated using the same floating-rate paid on these notes. The swap effectively converts the variable-rate subordinated notes to a fixed-rate liability and consequently reduces People’s United’s exposure to increases in interest rates. This swap is accounted for as a cash flow hedge.

The Bank has entered into a pay floating/receive fixed interest rate swap to hedge the change in fair value due to changes in interest rates of the Bank’s $400 million subordinated notes. The Bank has agreed with the swap counterparty to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated based on a notional amount of $375 million. The fixed-rate interest payments received on the swap will essentially offset the fixed-rate interest payments made on these notes, notwithstanding the notional difference between these notes and the swap. The floating-rate interest amounts paid under the swap are calculated based on three-month LIBOR plus 126.5 basis points. The swap effectively converts the fixed-rate subordinated notes to a floating-rate liability. This swap is accounted for as a fair value hedge.

People’s United has written guidelines that have been approved by its Board of Directors and ALCO governing the use of derivative financial instruments, including approved counterparties and credit limits. Credit risk associated with these instruments is controlled and monitored through policies and procedures governing collateral management and credit approval.

76

By using derivatives, People’s United is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s counterparty credit risk is equal to the amount reported as a derivative asset in the Consolidated Statements of Condition. In accordance with the Company’s balance sheet offsetting policy (see Note 1 to the Consolidated Financial Statements), amounts reported as derivative assets represent derivative contracts in a gain position, without consideration for derivative contracts in a loss position with the same counterparty (to the extent subject to master netting arrangements) and posted collateral. People’s United seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, execution of master netting arrangements and obtaining collateral, where appropriate. Counterparties to People’s United’s derivatives include major financial institutions and exchanges that undergo comprehensive and periodic internal credit analysis as well as maintain investment grade credit ratings from the major credit rating agencies. As such, management believes the risk of incurring credit losses on derivative contracts with those counterparties is remote and losses, if any, would be immaterial.

Certain of People’s United’s derivative contracts contain provisions establishing collateral requirements (subject to minimum collateral posting thresholds) based on the Company’s external credit rating. If the Company’s senior unsecured debt rating were to fall below the level generally recognized as investment grade, the counterparties to such derivative contracts could require additional collateral on those derivative transactions in a net liability position (after considering the effect of master netting arrangements and posted collateral). The aggregate fair value of derivative instruments with such credit-related contingent features that were in a net liability position at December 31, 2015 was $8.8 million, for which People’s United had posted collateral of $8.3 million in the normal course of business. If the Company’s senior unsecured debt rating had fallen below investment grade as of that date, $0.5 million in additional collateral would have been required.

Foreign Currency Risk

Foreign exchange contracts are commitments to buy or sell foreign currency on a future date at a contractual price. People’s United uses these instruments on a limited basis to eliminate its exposure to fluctuations in currency exchange rates on certain of its commercial loans that are denominated in foreign currencies. Gains and losses on foreign exchange contracts substantially offset the translation gains and losses on the related loans.

Derivative Financial Instruments

The following table summarizes certain information concerning derivative financial instruments utilized by People’s United in its management of IRR and foreign currency risk:

	Interest Rate Swaps						Foreign Exchange Contracts
As of December 31, 2015 (dollars in millions)	Cash Flow Hedge			Fair Value Hedge
Notional principal amounts	$	125.0		$	375.0		$	56.7
Weighted average interest rates:
Pay floating (receive fixed)		N/A			Libor+1.265% (4.00%	)		N/A
Pay fixed (receive floating)		1.99% (Libor+0.685%	)		N/A			N/A
Weighted average remaining term to maturity (in months)		14			103			3
Fair value:
Recognized as an asset	$	—		$	18.9		$	0.6
Recognized as a liability		0.6			—			0.2

77

People’s United enters into interest rate swaps with certain of its commercial customers. In order to minimize its risk, these customer derivatives (pay floating/receive fixed) have been offset with essentially matching interest rate swaps with People’s United’s institutional counterparties (pay fixed/receive floating). Hedge accounting has not been applied for these derivatives. Accordingly, changes in the fair value of all such interest rate swaps are recognized in current earnings.

The following table summarizes certain information concerning these interest rate swaps:

	Interest Rate Swaps
As of December 31, 2015 (dollars in millions)	Commercial Customers			Institutional Counterparties
Notional principal amounts		$4,644.8			$4,644.8
Weighted average interest rates:
Pay floating (receive fixed)		0.65% (1.97%	)		—
Pay fixed (receive floating)		—			1.87% (0.65%	)
Weighted average remaining term to maturity (in months)		84			84
Fair value:
Recognized as an asset		$   130.9			$       7.2
Recognized as a liability		2.6			105.3

See Notes 20 and 21 to the Consolidated Financial Statements for further information relating to derivatives.

Item 8. Financial Statements and Supplementary Data

The information required by this item begins on page F-1.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

People’s United’s management, including the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of People’s United’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that People’s United’s disclosure controls and procedures are effective, as of December 31, 2015, to ensure that information relating to People’s United, which is required to be disclosed in the reports People’s United files with the Securities and Exchange Commission under the Exchange Act, is (i) recorded, processed, summarized and reported as and when required and (ii) accumulated and communicated to management, including the principal executive officer and the principal financial officer, as appropriate to allow timely decisions regarding required disclosures.

During the quarter ended December 31, 2015, there has not been any change in People’s United’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, People’s United’s internal control over financial reporting. People’s United’s Management’s Report on Internal Control Over Financial Reporting appears on page 87 and the related Report of Independent Registered Public Accounting Firm appears on page F-3.

Item 9B. Other Information

None.

78

Part III

Item 10. Directors, Executive Officers and Corporate Governance

Directors of the Corporation

The information required by this item appears under the caption “Nominees for Director” in the People’s United Proxy Statement for the 2016 Annual Meeting of Shareholders, to be filed within 120 days of People’s United’s fiscal year end (the “Proxy Statement”) and is herein incorporated by reference.

Audit Committee Financial Expert

The Board of Directors has determined that William F. Cruger, Jr. and Janet M. Hansen, members of the Audit Committee of the Board, are each an “audit committee financial expert” and are “independent” within the meaning of those terms as used in the instructions to this Item 10.

Executive Officers of the Corporation

The information required by this item appears under the caption “Executive Officers who are not Directors” in the Proxy Statement and is herein incorporated by reference.

People’s United has adopted a Code of Ethics that applies to its Chief Executive Officer, Chief Financial Officer and Controller. The text of the Code of Ethics is available on People’s United’s website at www.peoples.com, under “Investor Relations—Corporate Governance—Management.”

Additional information required by this item appears under the caption “Board of Directors and Committees” in the Proxy Statement and is herein incorporated by reference.

Item 11. Executive Compensation

The information required by this item appears under the caption “Compensation Discussion and Analysis” in the Proxy Statement and is herein incorporated by reference.

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Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table provides summary information about People’s United’s equity compensation plans as of December 31, 2015:

Equity Compensation Plan Information

Plan category	Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)		Weighted-average exercise price of outstanding options, warrants and rights (b)		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)
Equity compensation plans approved by security holders		19,677,424	$	15.13		25,126,388	(1)
Equity compensation plans not approved by security holders		—		n/a		—
Total		19,677,424	$	15.13		25,126,388	(1)

(1) Of this amount, 251,071 shares are issuable as shares of restricted stock pursuant to the People’s United Financial, Inc. Directors’ Equity Compensation Plan. The remaining 24,875,317 shares are issuable pursuant to the People’s United Financial, Inc. 2014 Long-Term Incentive Plan either in the form of options, stock appreciation rights, shares of restricted stock or performance shares. Information describing these plans appears in Note 17 to the Consolidated Financial Statements.

Additional information required by this item appears under the caption “Security Ownership of Certain Beneficial Owners and Management” in the Proxy Statement and is herein incorporated by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this item appears under the caption “Transactions with Certain Related Persons” in the Proxy Statement and is herein incorporated by reference.

Item 14. Principal Accountant Fees and Services

The information required by this item appears under the caption “Ratification of the Appointment of Independent Registered Public Accounting Firm” in the Proxy Statement and is herein incorporated by reference.

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Part IV

Item 15. Exhibits and Financial Statement Schedules

(a)(1)	The following consolidated financial statements of People’s United Financial, Inc. and the independent registered public accounting firm report thereon are included herein beginning on page F-1:
	Consolidated Statements of Condition as of December 31, 2015 and 2014
	Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013
	Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013
	Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2015, 2014 and 2013
	Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013
	Notes to Consolidated Financial Statements
	Report of Independent Registered Public Accounting Firm
(a)(2)	Financial statement schedules have been omitted as they are not applicable or the information is included in the consolidated financial statements or notes thereto.
(a)(3)	Exhibits

The following Exhibits are filed with this Report or are incorporated by reference. Each exhibit identified by an asterisk constitutes a management contract or compensatory plan, contract or arrangement.

Designation	Description
3.1	Third Amended and Restated Certificate of Incorporation of People’s United Financial, Inc. (incorporated by reference to Exhibit 3.1 to Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2013)
3.2	Seventh Amended and Restated Bylaws of People’s United Financial, Inc. (incorporated by reference to Exhibit 3.2 to Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2013)
4.1	Form of Stock Certificate of People’s United Financial, Inc. (incorporated by reference to Exhibit 4.1 to Amendment No. 4 to Form S-1 filed with the Securities and Exchange Commission on February 13, 2007 (Registration No. 333-138389))
4.2	Indenture, dated as of February 14, 2007, by and between Chittenden Corporation and The Bank of New York Trust Company, N.A. as Trustee (incorporated by reference to Exhibit 4.2 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009)
4.3	Form of Global Note, registered in the name of Cede & Co. as nominee (February 17, 2007) (incorporated by reference to Exhibit 4.3 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009)
4.5	Senior Indenture dated as of December 6, 2012 between People’s United Financial, Inc. and The Bank of New York Mellon as Trustee (incorporated by reference to Exhibit 4.5 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2013)
4.6	Form of Global Note, registered in the name of Cede & Co. as nominee (December 6, 2012) (incorporated by reference to Exhibit 4.6 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2013)

81

Designation	Description
4.7	Issuing and Paying Agency Agreement dated June 26, 2014 between People’s United Bank as Issuer and Bank of New York Mellon as Agent (incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on June 26, 2014)
4.8	Form of Global Subordinated Note, registered in the name of Cede & Co. as nominee (June 26, 2014) (incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed with the Securities and Exchange Commission on June 26, 2014)
10.1*	Form of Change in Control Agreement (Senior Executive Vice Presidents) (incorporated by reference to Exhibit 10.2(c) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012)
10.2*	Short-Term Incentive Plan (incorporated by reference to Exhibit 10.3 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012)
10.3*	Amended and Restated People’s Bank 1998 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.9 to Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 9, 2007)
10.4*	People’s United Financial, Inc. 2008 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.10 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2010)
10.5*	Form of Stock Option Agreement under 2008 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.7 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2013)
10.6*	Form of Grant Agreement for Restricted Stock under 2008 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.8 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2013)
10.7*	People’s United Financial, Inc. 2014 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.22 to Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 12, 2014)
10.7(a)*	Form of Grant Agreement for Performance Shares under People’s United Financial, Inc. 2014 Long-Term Incentive Plan
10.8*	First Amended and Restated People’s United Bank Cap Excess Plan (incorporated by reference to Exhibit 10.13 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009)
10.8(a)*	First Amendment to the First Amended and Restated People’s United Bank Cap Excess Plan (incorporated by reference to Exhibit 10.9(a) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012)
10.9*	The People’s United Bank Enhanced Senior Pension Plan—First Amendment and Restatement (incorporated by reference to Exhibit 10.14 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009)
10.9(a)*	First Amendment to The People’s United Bank Enhanced Senior Pension Plan (incorporated by reference to Exhibit 10.10(a) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012)
10.10*	Non-Qualified Pension Trust Agreement, dated as of March 18, 1997, between People’s Bank and Morgan Guaranty Trust Company of New York (incorporated by reference to Exhibit 10.15 to Amendment No. 3 to Form S-1 filed with the Securities and Exchange Commission on February 2, 2007 (Registration No. 333-138389))

82

Designation	Description
10.10(a)*	Amendment to People’s Bank Non-Qualified Pension Trust Agreement (incorporated by reference to Exhibit 10.15(a) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2008)
10.10(b)*	Trustee Engagement Agreement (Non-Qualified Pension Plans) dated May 21, 2014 between People’s United Bank and First Bankers Trust Services, Inc. (incorporated by reference to Exhibit 10.11(b) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2015)
10.11*	People’s United Bank, N.A. Nonqualified Savings and Retirement Plan (amended and restated as of January 1, 2016)
10.12*	People’s Bank Supplemental Savings Plan Non-Qualified Trust Agreement, dated as of July 23, 1998, between People’s Bank and Morgan Guaranty Trust Company of New York (incorporated by reference to Exhibit 10.17 to Amendment No. 3 to Form S-1 filed with the Securities and Exchange Commission on February 2, 2007 (Registration No. 333-138389))
10.12(a)*	Amendment to People’s Bank Supplemental Savings Plan Non-Qualified Trust Agreement (incorporated by reference to Exhibit 10.17(a) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2008)
10.12(b)*	Trustee Engagement Agreement (Nonqualified Savings and Retirement Plan) dated May 21, 2014 between People’s United Bank and First Bankers Trust Services, Inc. (incorporated by reference to Exhibit 10.13(b) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2015)
10.13*	People’s United Financial, Inc. Second Amended and Restated Directors’ Equity Compensation Plan (incorporated by reference to Exhibit 10.14 to Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 12, 2014)
10.14*	People’s Bank Change-in-Control Employee Severance Plan (incorporated by reference to Exhibit 10.25 to Amendment No. 4 to Form S-1 filed with the Securities and Exchange Commission on February 13, 2007 (Registration No. 333-138389))
10.15*	People’s United Financial, Inc. 2007 Recognition and Retention Plan (amended) (incorporated by reference to Exhibit 10.26 to Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 8, 2008)
10.15(a)*	Form of Grant Agreement for Restricted Stock under 2007 Recognition and Retention Plan (incorporated by reference to Exhibit 10.16(d) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012)
10.16*	People’s United Financial, Inc. 2007 Stock Option Plan (amended) (incorporated by reference to Exhibit 10.27 to Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 8, 2008)
10.16(a)*	Form of Grant Agreement for Stock Options under 2007 Stock Option Plan (incorporated by reference to Exhibit 10.17(d) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012)
10.17*	Chittenden Corporation Deferred Compensation Plan (incorporated by reference to Exhibit 10.28 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009)
10.17(a)*	Amendment No. 1 to the Chittenden Corporation Deferred Compensation Plan (incorporated by reference to Exhibit 10.28(a) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009)

83

Designation	Description
10.17(b)*	Amendment No. 2 to the Chittenden Corporation Deferred Compensation Plan (incorporated by reference to Exhibit 10.18(b) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012)
10.17(c)*	Amendment No. 3 to the Chittenden Corporation Deferred Compensation Plan (incorporated by reference to Exhibit 10.18(c) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012)
10.18*	The Chittenden Corporation Supplemental Executive Savings Plan (incorporated by reference to Exhibit 10.30 to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009)
10.18(a)*	Amendment No. 1 to the Chittenden Corporation Supplemental Executive Savings Plan (incorporated by reference to Exhibit 10.30(a) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009)
10.18(b)*	Amendment No. 2 to the Chittenden Corporation Supplemental Executive Savings Plan (incorporated by reference to Exhibit 10.19(b) to Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012)
10.19*	Purchase and Assumption Agreement dated as of April 16, 2010 among Federal Deposit Insurance Corporation as Receiver of Butler Bank, Federal Deposit Insurance Corporation, and People’s United Bank (incorporated by reference to Exhibit 2.1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on April 20, 2010)
12.1	Consolidated Ratio of Earnings to Fixed Charges
12.2	Consolidated Combined Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
21	Subsidiaries
23	Consent of KPMG LLP
31.1	Rule 13a-14(a)/15d-14(a) Certifications
31.2	Rule 13a-14(a)/15d-14(a) Certifications
32	Section 1350 Certifications
99.1	Impact of Inflation
101.1	The following financial information from People’s United Financial, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 formatted in XBRL: (i) Consolidated Statements of Condition as of December 31, 2015 and 2014; (ii) Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013; (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2015, 2014 and 2013; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013; and (vi) Notes to Consolidated Financial Statements.

84

SIGNATURES

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, People’s United Financial, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PEOPLE’S UNITED FINANCIAL, INC.
Date: February 29, 2016	By:	/s/ John P. Barnes
		John P. Barnes
		President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of People’s United Financial, Inc. and in the capacities and on the dates indicated.

Date: February 29, 2016	By:	/s/ John P. Barnes
		John P. Barnes
		President, Chief Executive Officer and
		Director (Principal Executive Officer)
Date: February 29, 2016	By:	/s/ R. David Rosato
		R. David Rosato
		Senior Executive Vice President and
		Chief Financial Officer
		(Principal Financial Officer)
Date: February 29, 2016	By:	/s/ Jeffrey A. Hoyt
		Jeffrey A. Hoyt
		Senior Vice President and Controller
		(Principal Accounting Officer)
Date: February 29, 2016	By:	/s/ Collin P. Baron
		Collin P. Baron
		Director
Date: February 29, 2016	By:	/s/ Kevin T. Bottomley
		Kevin T. Bottomley
		Director
Date: February 29, 2016	By:	/s/ George P. Carter
		George P. Carter
		Chairman and Director

85

Date: February 29, 2016	By:	/s/ William F. Cruger, Jr.
		William F. Cruger, Jr.
		Director
Date: February 29, 2016	By:	/s/ John K. Dwight
		John K. Dwight
		Director
Date: February 29, 2016	By:	/s/ Jerry Franklin
		Jerry Franklin
		Director
Date: February 29, 2016	By:	/s/ Janet M. Hansen
		Janet M. Hansen
		Director
Date: February 29, 2016	By:	/s/ Richard M. Hoyt
		Richard M. Hoyt
		Director
Date: February 29, 2016	By:	/s/ Nancy McAllister
		Nancy McAllister
		Director
Date: February 29, 2016	By:	/s/ Mark W. Richards
		Mark W. Richards
		Director
Date: February 29, 2016	By:	/s/ Kirk W. Walters
		Kirk W. Walters
		Senior Executive Vice President and
		Director

86

STATEMENT OF MANAGEMENT’S RESPONSIBILITY

Management is responsible for the preparation, content and integrity of the consolidated financial statements and all other information included in this annual report. The consolidated financial statements and related footnotes are prepared in conformity with U.S. generally accepted accounting principles. Management is also responsible for compliance with laws and regulations relating to safety and soundness as designated by the Office of the Comptroller of the Currency.

The Board of Directors has an Audit Committee composed of six outside directors, each of whom meets the criteria for independence as set forth in applicable listing standards. The Audit Committee meets regularly with the independent auditors, the internal auditors and management to ensure that internal control over financial reporting is being properly administered and that financial data is being properly reported. The Audit Committee reviews the scope and timing of internal audits, including recommendations made with respect to internal control over financial reporting. The independent auditors and the internal auditors have free access to the Audit Committee.

MANAGEMENT’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining effective internal control over financial reporting for People’s United Financial, Inc. Management maintains a system of internal control over financial reporting, including an internal audit function, which is designed to provide reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, transactions are properly authorized, and that accounting records are reliable for the preparation of financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that internal control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In order to evaluate the effectiveness of internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act, management has conducted an assessment, including testing, using the criteria in Internal Control—Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on its assessment, management has concluded that People’s United Financial, Inc. maintained effective internal control over financial reporting as of December 31, 2015, based on criteria in Internal Control—Integrated Framework (2013) issued by COSO.

/s/ John P. Barnes	/s/ R. David Rosato
John P. Barnes	R. David Rosato
President and Chief Executive Officer	Senior Executive Vice President and Chief Financial Officer
Date: February 29, 2016

87

People’s United Financial, Inc. and Subsidiaries

Index to Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm	F-2
Consolidated Statements of Condition as of December 31, 2015 and 2014	F-4
Consolidated Statements of Income for the Years Ended December 31, 2015, 2014 and 2013	F-5
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2015,  2014 and 2013	F-6
Consolidated Statements of Changes in Stockholders’ Equity for the Years Ended December  31, 2015, 2014 and 2013	F-7
Consolidated Statements of Cash Flows for the Years Ended December 31, 2015, 2014 and 2013	F-8
Notes to Consolidated Financial Statements	F-9

F-1

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of People’s United Financial, Inc.:

We have audited the accompanying consolidated statements of condition of People’s United Financial, Inc. and subsidiaries (“People’s”) as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for each of the years in the three-year period ended December 31, 2015. These consolidated financial statements are the responsibility of People’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of People’s United Financial, Inc. and subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), People’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 29, 2016 expressed an unqualified opinion on the effectiveness of People’s internal control over financial reporting.

/s/ KPMG LLP

Stamford, Connecticut

February 29, 2016

F-2

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of People’s United Financial, Inc.:

We have audited the internal control over financial reporting of People’s United Financial, Inc. (“People’s”) as of December 31, 2015, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). People’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on People’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, People’s maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control—Integrated Framework (2013) issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statements of condition of People’s United Financial, Inc. and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for each of the years in the three-year period ended December 31, 2015, and our report dated February 29, 2016 expressed an unqualified opinion on those consolidated financial statements.

/s/ KPMG LLP

Stamford, Connecticut

February 29, 2016

F-3

People’s United Financial, Inc. and Subsidiaries

Consolidated Statements of Condition

As of December 31 (in millions)	2015			2014
Assets
Cash and due from banks (note 2)	$	334.8		$	345.1
Short-term investments (note 2)		380.5			668.6
Total cash and cash equivalents		715.3			1,013.7
Securities purchased under agreements to resell (note 2)		—			100.0
Securities (note 3):
Trading account securities, at fair value		6.7			8.3
Securities available for sale, at fair value		4,527.7			3,993.7
Securities held to maturity, at amortized cost (fair value of $1.66 billion and $881.6 million)		1,609.6			834.3
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		305.4			175.7
Total securities		6,449.4			5,012.0
Loans held for sale (note 4)		34.5			34.2
Loans (note 4):
Commercial		10,722.0			10,055.1
Commercial real estate		10,028.8			9,404.3
Residential mortgage		5,457.0			4,932.0
Consumer		2,203.1			2,200.6
Total loans		28,410.9			26,592.0
Less allowance for loan losses		(211.0	)		(198.3	)
Total loans, net		28,199.9			26,393.7
Goodwill (note 5)		1,958.7			1,954.5
Bank-owned life insurance		346.5			343.3
Premises and equipment, net (note 6)		257.8			277.8
Other acquisition-related intangible assets (note 5)		129.1			148.0
Other assets (note 7)		786.2			719.9
Total assets	$	38,877.4		$	35,997.1
Liabilities
Deposits (note 8):
Non-interest-bearing	$	6,178.6		$	5,655.1
Savings, interest-bearing checking and money market		17,420.7			15,252.4
Time		4,818.1			5,230.7
Total deposits		28,417.4			26,138.2
Borrowings (note 9):
Federal Home Loan Bank advances		3,463.8			2,291.7
Customer repurchase agreements		469.5			486.0
Federal funds purchased		374.0			913.0
Other borrowings		—			1.0
Total borrowings		4,307.3			3,691.7
Notes and debentures (note 10)		1,038.7			1,033.5
Other liabilities (note 7)		382.4			500.6
Total liabilities		34,145.8			31,364.0
Commitments and contingencies (notes 19 and 20)
Stockholders’ Equity (note 12)
Common stock ($0.01 par value; 1.95 billion shares authorized; 399.2 million shares and 396.8 million shares issued)		3.9			3.9
Additional paid-in capital		5,337.7			5,291.2
Retained earnings		880.8			826.7
Unallocated common stock of Employee Stock Ownership Plan, at cost (7.3 million shares and 7.7 million shares) (note 16)		(151.8	)		(159.0	)
Accumulated other comprehensive loss (note 15)		(177.2	)		(168.2	)
Treasury stock, at cost (89.1 million shares and 89.0 million shares)		(1,161.8	)		(1,161.5	)
Total stockholders’ equity		4,731.6			4,633.1
Total liabilities and stockholders’ equity	$	38,877.4		$	35,997.1

See accompanying notes to consolidated financial statements.

F-4

People’s United Financial, Inc. and Subsidiaries

Consolidated Statements of Income

Years ended December 31 (in millions, except per share data)	2015		2014			2013
Interest and dividend income:
Commercial	$	364.4	$	351.0		$	347.0
Commercial real estate		343.5		354.2			351.2
Residential mortgage		165.4		153.5			139.9
Consumer		72.3		73.9			74.8
Total interest on loans		945.6		932.6			912.9
Securities		121.5		96.8			89.7
Loans held for sale		1.3		0.8			1.5
Short-term investments		0.5		0.4			0.3
Total interest and dividend income		1,068.9		1,030.6			1,004.4
Interest expense:
Deposits (note 8)		95.5		80.9			81.1
Borrowings (note 9)		11.5		11.1			10.5
Notes and debentures		29.8		26.7			24.2
Total interest expense		136.8		118.7			115.8
Net interest income		932.1		911.9			888.6
Provision for loan losses (note 4)		33.4		40.6			43.7
Net interest income after provision for loan losses		898.7		871.3			844.9
Non-interest income:
Bank service charges		125.2		128.6			127.3
Investment management fees		43.7		41.6			37.2
Commercial banking lending fees		42.6		36.4			40.4
Operating lease income		42.3		41.6			34.5
Insurance revenue		30.7		29.9			31.2
Brokerage commissions		12.6		13.6			13.7
Gain on sale of business, net of expenses (note 7)		9.2		20.6			—
Net gains on sales of residential mortgage loans (note 4)		5.5		2.9			14.8
Net gains (losses) on sales of acquired loans (note 4)		1.7		(0.9	)		5.7
Net security gains (note 3)		—		3.0			—
Other non-interest income		38.9		33.5			36.9
Total non-interest income		352.4		350.8			341.7
Non-interest expense:
Compensation and benefits (notes 16 and 17)		449.5		436.0			427.1
Occupancy and equipment (notes 6 and 19)		149.5		147.3			148.0
Professional and outside services		68.0		59.2			60.6
Operating lease expense		37.1		37.4			31.3
Regulatory assessments		35.1		35.6			33.8
Amortization of other acquisition-related intangible assets (note 5)		23.9		24.8			26.2
Other non-interest expense		97.5		101.2			112.0
Total non-interest expense		860.6		841.5			839.0
Income before income tax expense		390.5		380.6			347.6
Income tax expense (note 11)		130.4		128.9			115.2
Net income	$	260.1	$	251.7		$	232.4
Earnings per common share (note 14):
Basic	$	0.86	$	0.84		$	0.74
Diluted		0.86		0.84			0.74

See accompanying notes to consolidated financial statements.

F-5

People’s United Financial, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

Years ended December 31 (in millions)	2015			2014			2013
Net income	$	260.1		$	251.7		$	232.4
Other comprehensive loss, before tax:
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial (loss) gain arising during the year		(3.5	)		(98.5	)		92.0
Reclassification adjustment for net actuarial loss included in net income		9.1			8.4			8.8
Net actuarial gain (loss)		5.6			(90.1	)		100.8
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.0	)		(1.0	)		(1.1	)
Net actuarial gain (loss) and prior service credit		4.6			(91.1	)		99.7
Net unrealized gains and losses on securities available for sale:
Net unrealized holding (losses) gains arising during the year		(22.1	)		70.9			(194.4	)
Unrealized holding losses on securities transferred during the year		—			—			37.0
Reclassification adjustment for net realized gains included in net income		—			(3.0	)		—
Net unrealized (losses) gains		(22.1	)		67.9			(157.4	)
Net unrealized losses on securities transferred to held to maturity:
Unrealized holding losses on securities transferred during the year		—			—			(37.0	)
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income		3.1			3.0			—
Net unrealized gains (losses)		3.1			3.0			(37.0	)
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized (losses) gains arising during the year		(1.1	)		(0.9	)		0.7
Reclassification adjustment for net realized losses included in net income		1.2			1.3			1.2
Net unrealized gains		0.1			0.4			1.9
Other comprehensive loss, before tax		(14.3	)		(19.8	)		(92.8	)
Deferred income tax benefit related to other comprehensive loss		5.3			6.7			34.6
Total other comprehensive loss, net of tax (note 15)		(9.0	)		(13.1	)		(58.2	)
Total comprehensive income	$	251.1		$	238.6		$	174.2

See accompanying notes to consolidated financial statements.

F-6

People’s United Financial, Inc. and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity

(in millions, except per share data)	Common Stock		Additional Paid-In Capital		Retained Earnings			Unallocated ESOP Common Stock			Accumulated Other Comprehensive Loss			Treasury Stock			Total Stockholders’ Equity
Balance at December 31, 2012	$	3.9	$	5,261.3	$	756.2		$	(173.5	)	$	(96.9	)	$	(712.2	)	$	5,038.8
Net income		—		—		232.4			—			—			—			232.4
Total other comprehensive loss, net of tax (note 15)		—		—		—			—			(58.2	)		—			(58.2	)
Cash dividends on common stock ($0.6475 per share)		—		—		(204.8	)		—			—			—			(204.8	)
Restricted stock awards		—		8.9		(0.2	)		—			—			0.9			9.6
Employee Stock Ownership Plan common stock committed to be released (note 16)		—		—		(2.4	)		7.3			—			—			4.9
Common stock repurchased (note 12)		—		—		—			—			—			(458.9	)		(458.9	)
Common stock repurchased and retired upon vesting of restricted stock awards (note 17)		—		—		(2.2	)		—			—			—			(2.2	)
Stock options and related tax benefits		—		6.8		—			—			—			—			6.8
Balance at December 31, 2013		3.9		5,277.0		779.0			(166.2	)		(155.1	)		(1,170.2	)		4,568.4
Net income		—		—		251.7			—			—			—			251.7
Total other comprehensive loss, net of tax (note 15)		—		—		—			—			(13.1	)		—			(13.1	)
Cash dividends on common stock ($0.6575 per share)		—		—		(196.9	)		—			—			—			(196.9	)
Restricted stock awards		—		2.9		(2.0	)		—			—			8.7			9.6
Employee Stock Ownership Plan common stock committed to be released (note 16)		—		—		(2.1	)		7.2			—			—			5.1
Common stock repurchased and retired upon vesting of restricted stock awards (note 17)		—		—		(3.0	)		—			—			—			(3.0	)
Stock options and related tax benefits		—		11.3		—			—			—			—			11.3
Balance at December 31, 2014		3.9		5,291.2		826.7			(159.0	)		(168.2	)		(1,161.5	)		4,633.1
Net income		—		—		260.1			—			—			—			260.1
Total other comprehensive loss, net of tax (note 15)		—		—		—			—			(9.0	)		—			(9.0	)
Cash dividends on common stock ($0.6675 per share)		—		—		(201.2	)		—			—			—			(201.2	)
Restricted stock awards		—		10.6		0.2			—			—			(0.3	)		10.5
Employee Stock Ownership Plan common stock committed to be released (note 16)		—		—		(1.8	)		7.2			—			—			5.4
Common stock repurchased and retired upon vesting of restricted stock awards (note 17)		—		—		(3.2	)		—			—			—			(3.2	)
Stock options and related tax benefits		—		35.9		—			—			—			—			35.9
Balance at December 31, 2015	$	3.9	$	5,337.7	$	880.8		$	(151.8	)	$	(177.2	)	$	(1,161.8	)	$	4,731.6

See accompanying notes to consolidated financial statements.

F-7

People’s United Financial, Inc. and Subsidiaries

Consolidated Statements of Cash flows

Years ended December 31 (in millions)	2015			2014			2013
Cash Flows from Operating Activities:
Net income	$	260.1		$	251.7		$	232.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment		39.3			39.6			40.3
Expense related to operating leases		37.1			37.4			31.3
Provision for loan losses		33.4			40.6			43.7
Amortization of other acquisition-related intangible assets		23.9			24.8			26.2
Expense related to share-based awards		17.2			14.9			13.9
Employee Stock Option Plan common stock committed to be released		5.4			5.1			4.9
Deferred income tax expense		14.1			6.7			15.5
Gain on sale of business, net of expenses		(9.2	)		(20.6	)		—
Net gains on sales of residential mortgage loans		(5.5	)		(2.9	)		(14.8	)
Net (gains) losses on sales of acquired loans		(1.7	)		0.9			(5.7	)
Net security gains		—			(3.0	)		—
Originations of loans held-for-sale		(448.3	)		(308.4	)		(721.9	)
Proceeds from sales of loans held-for-sale		453.5			300.4			790.4
Net decrease (increase) in trading account securities		1.6			—			(1.8	)
Net changes in other assets and other liabilities		(92.6	)		(37.2	)		(75.0	)
Net cash provided by operating activities		328.3			350.0			379.4
Cash Flows from Investing Activities:
Net decrease (increase) in securities purchased under agreements to resell		100.0			(100.0	)		—
Proceeds from principal repayments and maturities of securities available for sale		821.4			686.7			938.5
Proceeds from sales of securities available for sale		305.9			539.2			—
Proceeds from principal repayments and maturities of securities held to maturity		25.6			64.4			0.2
Purchases of securities available for sale		(1,766.4	)		(879.8	)		(1,373.8	)
Purchases of securities held to maturity		(803.3	)		(251.4	)		—
Net redemptions (purchases) of Federal Home Loan Bank stock		10.4			—			(102.0	)
Net purchases of Federal Reserve Bank stock		(140.1	)		—			—
Proceeds from sales of loans		31.3			9.7			30.8
Loan disbursements, net of principal collections		(1,856.5	)		(2,241.5	)		(2,731.4	)
Purchases of loans		(9.5	)		—			—
Purchases of premises and equipment		(29.8	)		(19.5	)		(14.0	)
Purchases of leased equipment		(50.5	)		(34.0	)		(70.0	)
Proceeds from sales of real estate owned		23.4			14.5			18.0
Return of premiums on bank-owned life insurance, net		1.2			1.4			1.0
Cash paid in acquisition		(10.3	)		—			—
Net cash used in investing activities		(3,347.2	)		(2,210.3	)		(3,302.7	)
Cash Flows from Financing Activities:
Net increase in deposits		2,279.2			3,580.9			806.8
Net increase (decrease) in borrowings with terms of three months or less		619.5			(1,362.2	)		2,709.1
Repayments of borrowings with terms of more than three months		(1.3	)		(0.6	)		(35.5	)
Net proceeds from issuance of notes and debentures		—			394.4			—
Repayments of notes and debentures		—			(19.0	)		(20.6	)
Cash dividends paid on common stock		(201.2	)		(196.9	)		(204.8	)
Common stock repurchases		(3.2	)		(3.0	)		(461.1	)
Proceeds from stock options exercised, including excess income tax benefits		27.5			6.0			2.4
Net cash provided by financing activities		2,720.5			2,399.6			2,796.3
Net (decrease) increase in cash and cash equivalents		(298.4	)		539.3			(127.0	)
Cash and cash equivalents at beginning of year		1,013.7			474.4			601.4
Cash and cash equivalents at end of year	$	715.3		$	1,013.7		$	474.4
Supplemental Information:
Interest payments	$	136.2		$	108.8		$	118.6
Income tax payments		107.8			109.7			93.7
Real estate properties acquired by foreclosure		14.7			17.6			21.7
Unsettled purchases of securities		5.0			91.5			23.3
Securities transferred from available for sale to held to maturity at fair value (note 3)		—			—			584.5

See accompanying notes to consolidated financial statements.

F-8

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 1 – Summary of Significant Accounting Policies

People’s United Financial, Inc. (“People’s United” or the “Company”) is a bank holding company and a financial holding company registered under the Bank Holding Company Act of 1956, as amended, and is incorporated under the state laws of Delaware. People’s United is the holding company for People’s United Bank, N.A. (the “Bank”), a national banking association headquartered in Bridgeport, Connecticut. Prior to February 23, 2015, the Company was a savings and loan holding company within the meaning of the Home Owners’ Loan Act and the Bank was a federally-chartered savings bank. The principal business of People’s United is to provide, through the Bank and its subsidiaries, commercial banking, retail banking and wealth management services to individual, corporate and municipal customers.

The Bank provides a full range of traditional banking services, including accepting deposits and originating loans, as well as specialized financial services through its non-bank subsidiaries, including: equipment financing provided through People’s Capital and Leasing Corp. (“PCLC”) and People’s United Equipment Finance Corp. (“PUEFC”); brokerage, financial advisory services, investment management services and life insurance provided through People’s Securities, Inc. (“PSI”); and other insurance services provided through People’s United Insurance Agency, Inc. (“PUIA”). The Company’s overall financial results are particularly dependent on economic conditions in New England and New York, which are its primary markets, although economic conditions elsewhere in the United States affect its equipment financing business. Deposits are insured up to applicable limits by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (the “FDIC”).

People’s United is regulated by the Board of Governors of the Federal Reserve System (the “FRB”) and subject to FRB examination, supervision and reporting requirements. The Bank is regulated by the Office of the Comptroller of the Currency (the “OCC”) and subject to OCC examination, supervision and reporting requirements.

Basis of Financial Statement Presentation

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of People’s United and its subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. Certain reclassifications have been made to prior year amounts to conform to the current year presentation.

In preparing the consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from management’s current estimates, as a result of changing conditions and future events.

Several accounting estimates are particularly critical and are susceptible to significant near-term change, including the allowance for loan losses and asset impairment judgments, such as the recoverability of goodwill and other intangible assets. These accounting estimates, which are included in the discussion below, are reviewed with the Audit Committee of the Board of Directors.

The judgments used by management in applying critical accounting policies may be affected by economic conditions, which may result in changes to future financial results. For example, subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan losses in future periods, and the inability to collect outstanding principal may result in increased loan losses.

F-9

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

For purposes of the Consolidated Statements of Cash Flows, cash equivalents include highly liquid instruments, such as: (i) interest-bearing deposits at the Federal Reserve Bank of New York (“FRB-NY”); (ii) government-sponsored enterprise (“GSE”) debt securities with an original maturity of three months or less (determined as of the date of purchase); (iii) federal funds sold; (iv) commercial paper; and (v) money market mutual funds. These instruments are reported as short-term investments in the Consolidated Statements of Condition at cost or amortized cost, which approximates fair value. GSE debt securities classified as cash equivalents are held to maturity and carry the implicit backing of the U.S. government, but are not direct obligations of the U.S. government.

Securities

Marketable equity and debt securities (other than those reported as short-term investments) are classified as either trading account securities, held to maturity securities (applicable only to debt securities) or available for sale securities. Management determines the classification of a security at the time of its purchase and reevaluates such classification at each balance sheet date.

Securities purchased for sale in the near term as well as those securities held by PSI (in accordance with the requirements for a broker-dealer) are classified as trading account securities and reported at fair value with unrealized gains and losses reported in non-interest income.

Debt securities for which People’s United has the positive intent and ability to hold to maturity are classified as held to maturity securities and reported at amortized cost. All other securities are classified as available for sale and reported at fair value with unrealized gains and losses reported on an after-tax basis in stockholders’ equity as accumulated other comprehensive income (loss). Premiums are amortized and discounts are accreted to interest income for debt securities, using the interest method over the remaining period to contractual maturity, adjusted for the effect of actual prepayments in the case of mortgage-backed securities and collateralized mortgage obligations (“CMOs”).

Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification method and reported in non-interest income.

Securities transferred from available for sale to held to maturity are recorded at fair value at the date of transfer. The unrealized pre-tax gain or loss resulting from the difference between fair value and amortized cost at the transfer date becomes part of the new amortized cost basis of the securities and remains in accumulated other comprehensive loss (“AOCL”). Such unrealized gains or losses are amortized to interest income as an adjustment to yield over the remaining life of the securities, offset by the amortization of the premium or discount resulting from the transfer at fair value, with no effect to net income.

Management conducts a periodic review and evaluation of the securities portfolio to determine if the decline in fair value of any security is deemed to be other-than-temporary. Other-than-temporary impairment losses are recognized on debt securities when: (i) People’s United has an intention to sell the security; (ii) it is more likely than not that People’s United will be required to sell the security prior to recovery; or (iii) People’s United does not expect to recover the entire amortized cost basis of the security. Other-than-temporary impairment losses on debt securities are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. Management has the ability and intent to hold the securities classified as held to maturity until they mature, at which time People’s United expects to receive full value for the securities.

F-10

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Both FRB-NY stock and Federal Home Loan Bank (“FHLB”) stock are non-marketable equity securities and are, therefore, reported at their respective costs, which equals par value (the amount at which shares have been redeemed in the past). These investments are periodically evaluated for impairment based on, among other things, the capital adequacy of the FRB-NY or applicable FHLB and their overall financial condition.

Securities Resale and Securities Repurchase Agreements

In securities resale agreements, a counterparty transfers securities to People’s United (as transferee) and People’s United agrees to resell the same securities to the counterparty at a fixed price in the future. In securities repurchase agreements, which include both retail arrangements with customers and wholesale arrangements with other counterparties, People’s United (as transferor) transfers securities to a counterparty and agrees to repurchase the same securities from the counterparty at a fixed price in the future.

People’s United accounts for securities resale agreements as secured lending transactions and securities repurchase agreements as secured borrowings since the transferor maintains effective control over the transferred securities and the transfer meets the other criteria for such accounting. The securities are pledged by the transferor as collateral and the transferee has the right by contract to repledge that collateral provided the same collateral is returned to the transferor upon maturity of the underlying agreement. The fair value of the pledged collateral approximates the recorded amount of the secured loan or borrowing. Decreases in the fair value of the transferred securities below an established threshold require the transferor to provide additional collateral.

Loans Held for Sale

Loans held for sale are reported at the lower of cost or fair value in the aggregate with any adjustment for net unrealized losses reported in non-interest income. Management identifies and designates as loans held for sale certain newly-originated adjustable-rate and fixed-rate residential mortgage loans that meet secondary market requirements, as these loans are originated with the intent to sell. From time to time, management identifies and designates residential mortgage loans held in the loan portfolio for sale. Such loans are transferred to loans held for sale and adjusted to the lower of cost or fair value with the resulting unrealized loss, if any, reported in non-interest income.

Loans

Loans acquired in connection with business combinations are referred to as ‘acquired’ loans as a result of the manner in which they are accounted for (see further discussion under ‘Acquired Loans’ below). All other loans are referred to as ‘originated’ loans.

Basis of Accounting

Originated loans are reported at amortized cost less the allowance for loan losses. Interest on loans is accrued to income monthly based on outstanding principal balances. Loan origination fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized in interest income as an adjustment of yield. Depending on the loan portfolio, amounts are amortized or accreted using the level yield method over either the actual life or the estimated average life of the loan.

Non-accrual Loans

A loan is generally considered “non-performing” when it is placed on non-accrual status. A loan is generally placed on non-accrual status when it becomes 90 days past due as to interest or principal payments. Past due status is based on the contractual payment terms of the loan. A loan may be placed on non-accrual status before it reaches 90 days past due if such loan has been identified as presenting uncertainty with respect to the collectability of interest and principal. A loan past due 90 days or more may remain on accruing status if such loan is both well secured and in the process of collection. There were no loans past due 90 days or more and still accruing interest at December 31, 2015, 2014 or 2013.

F-11

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

All previously accrued but unpaid interest on non-accrual loans is reversed from interest income in the period in which the accrual of interest is discontinued. Interest payments received on non-accrual loans (including impaired loans) are generally applied as a reduction of principal if future collections are doubtful, although such interest payments may be recognized as income. A loan remains on non-accrual status until the factors that indicated doubtful collectability no longer exist or until a loan is determined to be uncollectible and is charged off against the allowance for loan losses.

Impaired Loans

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impaired loans also include certain originated loans whose terms have been modified in such a way that they are considered troubled debt restructurings (“TDRs”). Originated loans are considered TDRs if the borrower is experiencing financial difficulty and is afforded a concession by People’s United, such as, but not limited to: (i) payment deferral; (ii) a reduction of the stated interest rate for the remaining contractual life of the loan; and (iii) an extension of the loan’s original contractual term at a stated previously accrued principal or interest.

TDRs may either be accruing or placed on non-accrual status (and reported as non-performing loans) depending upon the loan’s specific circumstances, including the nature and extent of the related modifications. TDRs on non-accrual status remain classified as such until the loan qualifies for return to accrual status. Loans qualify for return to accrual status once they have demonstrated performance with the restructured terms of the loan agreement for a minimum of six months in the case of a commercial loan or, in the case of a retail loan, when the loan is less than 90 days past due. Loans may continue to be reported as TDRs after they are returned to accrual status. In accordance with regulatory guidance, residential mortgage and home equity loans restructured in connection with the borrower’s bankruptcy and meeting certain criteria are also required to be classified as TDRs, included in non-performing loans and written down to the estimated collateral value, regardless of delinquency status. Acquired loans that are modified are not considered for TDR classification provided they are evaluated for impairment on a pool basis.

Impairment is evaluated on a collective basis for smaller-balance loans with similar credit risk and on an individual loan basis for other loans. If a loan is deemed to be impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported (net of the allowance) at the present value of expected future cash flows discounted at the loan’s original effective interest rate or at the fair value of the collateral less cost to sell if repayment is expected solely from the collateral. Interest payments on impaired non-accrual loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Acquired Loans

Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected are initially recorded at fair value without recording an allowance for loan losses. Fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a market-based discount rate to those cash flows. Acquired loans are generally accounted for on a pool basis, with pools formed based on the loans’ common risk characteristics, such as loan collateral type and accrual status. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows.

F-12

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Under the accounting model for acquired loans, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield”, is accreted into interest income over the life of the loans in each pool using the effective yield method. Accordingly, acquired loans are not subject to classification as non-accrual in the same manner as originated loans. Rather, acquired loans are considered to be accruing loans because their interest income relates to the accretable yield recognized at the pool level and not to contractual interest payments at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “nonaccretable difference”, includes estimates of both the impact of prepayments and future credit losses expected to be incurred over the life of the loans in each pool. As such, charge-offs on acquired loans are first applied to the nonaccretable difference and then to any allowance for loan losses recognized subsequent to acquisition.

Subsequent to acquisition, actual cash collections are monitored relative to management’s expectations and revised cash flow forecasts are prepared, as warranted. These revised forecasts involve updates, as necessary, of the key assumptions and estimates used in the initial estimate of fair value. Generally speaking, expected cash flows are affected by:

• Changes in the expected principal and interest payments over the estimated life – Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows resulting from loan modifications are included in the assessment of expected cash flows;

• Changes in prepayment assumptions – Prepayments affect the estimated life of the loans which may change the amount of interest income, and possibly principal, expected to be collected; and

• Changes in interest rate indices for variable rate loans – Expected future cash flows are based, as applicable, on the variable rates in effect at the time of the assessment of expected cash flows.

A decrease in expected cash flows in subsequent periods may indicate that the loan pool is impaired, which would require the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods serves, first, to reduce any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan pool. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans in the pool.

An acquired loan may be resolved either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party or foreclosure of the collateral. In the event of a sale of the loan, a gain or loss on sale is recognized and reported within non-interest income based on the difference between the sales proceeds and the carrying amount of the loan. In other cases, individual loans are removed from the pool based on comparing the amount received from its resolution (fair value of the underlying collateral less costs to sell in the case of a foreclosure) with its outstanding balance. Any difference between these amounts is absorbed by the nonaccretable difference established for the entire pool. For loans resolved by payment in full, there is no adjustment of the nonaccretable difference since there is no difference between the amount received at resolution and the outstanding balance of the loan. In these cases, the remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by the removal of the loan from the pool is addressed in connection with the subsequent cash flow re-assessment for the pool. Acquired loans subject to modification are not removed from the pool even if those loans would otherwise be deemed TDRs as the pool, and not the individual loan, represents the unit of account.

F-13

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Allowance and Provision for Loan Losses

The allowance for loan losses is established through provisions for loan losses charged to income. Losses on loans, including impaired loans, are charged to the allowance for loan losses when all or a portion of a loan is deemed to be uncollectible. Recoveries of loans previously charged off are credited to the allowance for loan losses when realized.

People’s United maintains the allowance for loan losses at a level that is deemed to be appropriate to absorb probable losses inherent in the respective loan portfolios, based on a quarterly evaluation of a variety of factors. These factors include, but are not limited to: (i) People’s United’s historical loan loss experience and recent trends in that experience; (ii) risk ratings assigned by lending personnel to commercial real estate loans, commercial and industrial loans, and equipment financing loans, and the results of ongoing reviews of those ratings by People’s United’s independent loan review function; (iii) an evaluation of delinquent and non-performing loans and related collateral values; (iv) the probability of loss in view of geographic and industry concentrations and other portfolio risk characteristics; (v) the present financial condition of borrowers; and (vi) current economic conditions.

The Company’s allowance for loan losses consists of three elements: (i) an allowance for larger-balance, non-homogeneous loans that are evaluated on an individual (loan-by-loan) basis; (ii) an allowance for smaller-balance, homogeneous loans that are evaluated on a collective basis; and (iii) a specific allowance for loans deemed to be impaired, including originated loans classified as TDRs.

Larger-balance, Non-homogeneous Loans. The Company establishes a loan loss allowance for its larger-balance, non-homogeneous loans using a methodology that incorporates (i) the probability of default for a given loan risk rating and (ii) historical default data over a multi-year period. In accordance with the Company’s loan risk rating system, each loan, with the exception of those included in large groups of smaller-balance homogeneous loans, is assigned a risk rating (using a nine-grade scale) by the originating loan officer, credit management, internal loan review or loan committee. Loans rated “One” represent those loans least likely to default while loans rated “Nine” represent a loss. The probability of loans defaulting for each risk rating, referred to as default factors, are estimated based on the historical pattern of loans migrating from one risk rating to another and to default status over time as well as the length of time that it takes losses to emerge. Estimated loan default factors, which are updated annually (or more frequently, if necessary), are multiplied by loan balances within each risk-rating category and again multiplied by a historical loss-given-default estimate for each loan type to determine an appropriate level of allowance by loan type. The historical loss-given-default estimates are also updated annually (or more frequently, if necessary) based on actual charge-off experience. This approach is applied to the commercial, commercial real estate and equipment financing components of the loan portfolio.

In developing the allowance for loan losses for larger-balance, non-homogeneous loans, the Company also gives consideration to certain qualitative factors, including the macroeconomic environment and any potential imprecision inherent in its loan loss model that may result from having limited historical loan loss data which, in turn, may result in inaccurate probability of default and loss-given-default estimates. In consideration of these factors, the Company may adjust the allowance for loan losses upward or downward based on current economic conditions and portfolio trends. In determining the extent of any such adjustment, the Company considers both economic and portfolio-specific data that correlates with loan losses. The Company evaluates the qualitative factors on a quarterly basis in order to conclude that they continue to be appropriate. There were no significant changes in the amount of the qualitative component of the related allowance for loan losses during 2015.

F-14

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Smaller-balance, Homogeneous Loans. Pools of smaller-balance, homogeneous loans with similar risk and loss characteristics are also assessed for probable losses. These loan pools include residential mortgage, home equity and other consumer loans that are not assigned individual loan risk ratings. Rather, the assessment of these portfolios, and the establishment of the related allowance for loan losses, is based upon a consideration of (i) recent historical loss experience and (ii) certain qualitative factors.

In establishing the allowance for loan losses for residential mortgage loans, the Company principally considers historical portfolio loss experience of the most recent 1- and 3-year periods, as management believes this provides a reasonable basis for estimating the inherent probable losses within the residential mortgage portfolio. In establishing the allowance for loan losses for home equity loans, the Company principally considers historical portfolio loss experience of the most recent 12-month period.

The qualitative component of the allowance for loan losses for smaller-balance, homogenous loans is intended to incorporate risks inherent in the portfolio, economic uncertainties, regulatory requirements and other subjective factors such as changes in underwriting standards. Accordingly, consideration is given to: (i) present and forecasted economic conditions, including unemployment rates; (ii) changes in industry trends, including the impact of new regulations, (iii) trends in property values; (iv) broader portfolio indicators, including delinquencies, non-performing loans, portfolio concentrations, and trends in the volume and terms of loans; and (v) portfolio-specific risk characteristics.

The portfolio-specific risk characteristics considered include: (i) collateral values/loan-to-value (“LTV”) ratios (above and below 70%); (ii) borrower credit scores under the FICO scoring system (above and below a score of 680); and (iii) other relevant portfolio risk elements such as income verification at the time of underwriting (stated income vs. non-stated income) and the property’s intended use (owner-occupied, non-owner occupied, second home, etc.), the combination of which results in a loan being classified as either “High”, “Moderate” or “Low” risk. These risk classifications are reviewed quarterly to ensure that changes within the portfolio, as well as economic indicators and industry developments, have been appropriately considered in establishing the related allowance for loan losses.

In establishing the allowance for loan losses for smaller-balance, homogeneous loans, the amount reflecting the Company’s consideration of qualitative factors is added to the amount attributable to historical portfolio loss experience. In this manner, historical charge-off data (whether periods or amounts) is not adjusted and the allowance for loan losses always includes a component attributable to qualitative factors, the degree of which may change from period to period as such qualitative factors indicate improving or worsening trends. There were no significant changes in the amount of the qualitative component of the related allowance for loan losses during 2015.

Individually Impaired Loans. The allowance for loan losses also includes specific allowances for individually impaired loans. Generally, the Company’s impaired loans consist of (i) classified commercial loans in excess of $750,000 that have been placed on non-accrual status and (ii) originated loans classified as TDRs. Individually impaired loans are measured based upon observable market prices; the present value of expected future cash flows discounted at the loan’s original effective interest rate; or, in the case of collateral dependent loans, fair value of the collateral (based on appraisals and other market information) less cost to sell. If the recorded investment in a loan exceeds the amount measured as described in the preceding sentence, a specific allowance for loan losses would be established as a component of the overall allowance for loan losses or, in the case of a collateral dependent loan, a charge-off would be recorded for the difference between the loan’s recorded investment and management’s estimate of the fair value of the collateral (less cost to sell). It would be rare for the Company to identify a loan that meets the criteria stated above and requires a specific allowance or a charge-off and not deem it impaired solely as a result of the existence of a guarantee.

F-15

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

People’s United performs an analysis of its impaired loans, including collateral dependent impaired loans, on a quarterly basis. Individually impaired collateral dependent loans are measured based upon the appraised value of the underlying collateral and other market information. Generally, the Company’s policy is to obtain updated appraisals for commercial collateral dependent loans when the loan is downgraded to a risk rating of “substandard” or “doubtful”, and the most recent appraisal is more than 12 months old or a determination has been made that the property has experienced a significant decline in value. Appraisals are prepared by independent, licensed third-party appraisers and are subject to review by the Company’s internal commercial appraisal department or external appraisers contracted by the commercial appraisal department. The conclusions of the external appraisal review are reviewed by the Company’s Chief Commercial Appraiser prior to acceptance. The Company’s policy with respect to impaired loans secured by residential real estate is to receive updated estimates of property values upon the loan being classified as non-performing (typically upon becoming 90 days past due).

In determining the allowance for loan losses, People’s United gives appropriate consideration to the age of appraisals through its regular evaluation of other relevant qualitative and quantitative information. Specifically, between scheduled appraisals, property values are monitored within the commercial portfolio by reference to current originations of collateral dependent loans and the related appraisals obtained during underwriting as well as by reference to recent trends in commercial property sales as published by leading industry sources. Property values are monitored within the residential mortgage and home equity portfolios by reference to available market indicators, including real estate price indices within the Company’s primary lending areas.

In most situations where a guarantee exists, the guarantee arrangement is not a specific factor in the assessment of the related allowance for loan losses. However, the assessment of a guarantor’s credit strength is reflected in the Company’s internal loan risk ratings which, in turn, are an important factor in its allowance for loan loss methodology for loans within the commercial and commercial real estate portfolios.

People’s United did not change its methodologies with respect to determining the allowance for loan losses during 2015. As part of its ongoing assessment of the allowance for loan losses, People’s United regularly makes refinements to certain underlying assumptions used in its methodologies. However, such refinements did not have a material impact on the allowance for loan losses or the provision for loan losses as of or for the year ended December 31, 2015.

While People’s United seeks to use the best available information to make these determinations, future adjustments to the allowance for loan losses may be necessary based on changes in economic conditions, results of regulatory examinations, further information obtained regarding known problem loans, the identification of additional problem loans and other factors.

Loan Charge-Offs

The Company’s charge-off policies, which comply with standards established by banking regulators, are consistently applied from period to period. Charge-offs are recorded on a monthly basis. Partially charged-off loans continue to be evaluated on a monthly basis and additional charge-offs or loan loss provisions may be recorded on the remaining loan balance based on the same criteria.

F-16

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

For unsecured consumer loans, charge-offs are generally recorded when the loan is deemed to be uncollectible or 120 days past due, whichever occurs first. For consumer loans secured by real estate, including residential mortgage loans, charge-offs are generally recorded when the loan is deemed to be uncollectible or 180 days past due, whichever occurs first, unless it can be clearly demonstrated that repayment will occur regardless of the delinquency status. Factors that demonstrate an ability to repay may include: (i) a loan that is secured by adequate collateral and is in the process of collection; (ii) a loan supported by a valid guarantee or insurance; or (iii) a loan supported by a valid claim against a solvent estate.

For commercial loans, a charge-off is recorded when the Company determines that it will not collect all amounts contractually due based on the fair value of the collateral less cost to sell, or the present value of expected future cash flows.

The decision whether to charge-off all or a portion of a loan rather than to record a specific or general loss allowance is based on an assessment of all available information that aids in determining the loan’s net realizable value. Typically this involves consideration of both (i) the fair value of any collateral securing the loan, including whether the estimate of fair value has been derived from an appraisal or other market information and (ii) other factors affecting the likelihood of repayment, including the existence of guarantees and insurance. If the amount by which the Company’s recorded investment in the loan exceeds its net realizable value is deemed to be a confirmed loss, a charge-off is recorded. Otherwise, a specific or general reserve is established, as applicable.

Wealth Management and Other Fee-Based Revenues

Investment management fees are accrued when earned based on total assets managed and administered, which are not reported as assets of People’s United. Insurance revenue represents commissions earned solely from performing broker- and agency-related services. Insurance commission revenues related to agency-billed policies are recognized at the later of the policy billing date or the policy effective date. Insurance commission revenues on premiums directly billed by insurance carriers are generally recognized as revenue during the period commissions are paid by the insurance carrier. Brokerage commissions are recognized on a trade-date basis. Bank service charges are recorded when earned.

Bank-Owned Life Insurance

Bank-owned life insurance (“BOLI”) represents the cash surrender value of life insurance policies purchased on the lives of certain key executives and former key executives. BOLI funds are generally invested in separate accounts and are supported by a stable wrap agreement to fully insulate the underlying investments against changes in fair value. Increases in the cash surrender value of these policies and death benefits in excess of the related invested premiums are included in non-interest income in the Consolidated Statements of Income. The Company’s BOLI policies have been underwritten by highly-rated third party insurance carriers and the investments underlying these policies are deemed to be of low-to-moderate market risk.

Premises and Equipment

Premises and equipment are reported at cost less accumulated depreciation and amortization, except for land, which is reported at cost. Buildings, data processing and other equipment, computer software, furniture and fixtures are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, the estimated useful life of the improvements or 10 years. Capitalized software development costs are amortized on a straight-line basis over the estimated useful life of the software. Generally, the estimated useful lives are as follows: buildings – 40 years; data processing and other equipment – 3 to 5 years; computer software – 3 to 5 years; and furniture and fixtures – 10 years.

F-17

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Goodwill and Other Acquisition-Related Intangible Assets

An acquirer in a business combination is required, upon initially obtaining control of another entity, to recognize the assets, liabilities and any non-controlling interest in the acquiree at fair value as of the acquisition date. Contingent consideration, if any, is also recognized and measured at fair value on the date of acquisition. In addition, the accounting standards for business combinations require that: (i) acquisition-related transaction costs be expensed as incurred; (ii) specific requirements be met in order to accrue for a restructuring plan as part of the acquisition; (iii) certain pre-acquisition contingencies be recognized at fair value; and (iv) acquired loans be recorded at fair value as of the acquisition date without recognition of an allowance for loan losses.

Intangible assets are recognized in an amount equal to the excess of the purchase price over the fair value of the tangible net assets acquired. “Acquisition-related intangible assets” are separately identified and recognized, where appropriate, for assets such as trade names and the estimated values of acquired core deposits and/or customer relationships. The remaining intangible asset is recognized as goodwill.

Goodwill and indefinite-lived intangible assets are not amortized but, rather, are reviewed for impairment at least annually, with impairment losses recognized as a charge to expense when they occur. Acquisition-related intangible assets other than goodwill and indefinite-lived intangible assets are amortized to expense over their estimated useful lives and are periodically reviewed by management to assess recoverability, with impairment losses recognized as a charge to expense if carrying amounts exceed fair values.

The Company’s trade name intangible is being amortized on an accelerated basis over a period of approximately 20 years, reflecting the manner in which the related benefit is expected to be realized. Core deposit intangibles are amortized over 10 years on an accelerated basis that reflects the manner in which the related benefit attributable to the acquired deposits is expected to be realized. Customer relationship intangibles are amortized on a straight-line basis (approximating the manner in which the benefit is expected to be realized) over the estimated remaining average life of those relationships (ranging from 7 to 15 years from the respective acquisition dates).

Goodwill is evaluated for impairment at the reporting unit level. For the purpose of goodwill impairment evaluations, management has identified reporting units based upon the Company’s three operating segments: Commercial Banking; Retail Banking; and Wealth Management. The impairment evaluation is performed as of an annual date or more frequently if a triggering event indicates that impairment may have occurred.

Entities have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity is not required to perform the two-step impairment test as described below. People’s United elected to perform this optional qualitative assessment in its evaluation of goodwill impairment as of October 1st (the annual impairment evaluation date) in 2013, and concluded that performance of the two-step impairment test was not required. In both 2015 and 2014, People’s United elected to perform the two-step impairment test.

The first step (“Step 1”) is used to identify potential impairment, and involves comparing each reporting unit’s estimated fair value to its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not deemed to be impaired. Should the carrying amount of the reporting unit exceed its estimated fair value, an indicator of potential impairment is deemed to exist and a second step is performed to measure the amount of such impairment, if any. At this time, none of the Company’s identified reporting units are at risk of failing the Step 1 goodwill impairment test.

F-18

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The second step (“Step 2”) involves calculating the implied fair value of goodwill for each reporting unit for which impairment was indicated in Step 1. The implied fair value of goodwill is determined in a manner similar to how the amount of goodwill is determined in a business combination (i.e. by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles applicable to that reporting unit as of the impairment testing date). If the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting unit, no impairment exists. If the carrying amount of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recorded in an amount equal to such excess. An impairment loss cannot exceed the carrying amount of goodwill assigned to a reporting unit, and the loss (write-down) establishes a new carrying amount for the goodwill. Subsequent reversals of goodwill impairment losses are not permitted.

The Company estimates the fair value of its reporting units based on an appropriate weighting of values based on (i) a present-value measurement technique (discounted cash flow analysis based on internal forecasts) and (ii) market-based trading and transaction multiples. The discounted cash flow analysis is based on significant assumptions and judgments including future growth rates and discount rates reflecting management’s assessment of market participant views of the risks associated with the projected cash flows of the reporting units. The market-based trading and transaction multiples are derived from the market prices of stocks of companies that are actively traded and engaged in the same or similar businesses as the Company and the respective reporting unit. The derived multiples are then applied to the reporting unit’s financial metrics to produce an indication of value. Differences in the identification of reporting units or in the selection of valuation techniques and related assumptions could result in materially different evaluations of goodwill impairment.

Real Estate Owned

Real estate owned (“REO”) properties acquired through foreclosure or deed-in-lieu of foreclosure are recorded initially at the lower of cost or estimated fair value less costs to sell. Any write-down of the recorded investment in the related loan is charged to the allowance for loan losses upon transfer to REO. Thereafter, an allowance for REO losses is established for any further declines in the property’s value. This allowance is increased by provisions charged to income and decreased by charge-offs for realized losses. Management’s periodic evaluation of the adequacy of the allowance is based on an analysis of individual properties, as well as a general assessment of current real estate market conditions.

Income Taxes

Deferred taxes are recognized for the estimated future tax effects attributable to “temporary differences” and tax loss carryforwards. Temporary differences are differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. A deferred tax liability is recognized for all temporary differences that will result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions and for all tax loss carryforwards, subject to reduction of the asset by a valuation allowance in certain circumstances. This valuation allowance is recognized if, based on an analysis of available evidence, management determines that it is more likely than not that some portion or all of the deferred tax asset will not be realized. The valuation allowance is subject to ongoing adjustment based on changes in circumstances that affect management’s judgment about the realizability of the deferred tax asset.

Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to future taxable income. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in income tax expense in the period that includes the enactment date of the change. Tax benefits attributable to deductions in excess of financial statement amounts arising from the exercise of non-statutory stock options are credited to additional paid-in capital.

F-19

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Individual tax positions taken or expected to be taken on a tax return must satisfy certain criteria in order for some or all of the related tax benefits to be recognized in the financial statements. Specifically, a recognition threshold of more-likely-than-not must be met in order to recognize those tax benefits.

Earnings Per Common Share

Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method.

Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Companies that have such participating securities, including People’s United, are required to calculate basic and diluted EPS using the two-class method. Restricted stock awards granted by People’s United are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities.

Derivative Financial Instruments and Hedging Activities

People’s United uses derivative financial instruments as components of its market risk management (principally to manage interest rate risk (“IRR”)). Certain other derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes.

All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Condition, reported at fair value and presented on a gross basis. Until a derivative is settled, a favorable change in fair value results in an unrealized gain that is recognized as an asset, while an unfavorable change in fair value results in an unrealized loss that is recognized as a liability.

The Company generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exist between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. The hedge accounting method depends upon whether the derivative instrument is classified as a fair value hedge (i.e. hedging an exposure related to a recognized asset or liability, or a firm commitment) or a cash flow hedge (i.e. hedging an exposure related to the variability of future cash flows associated with a recognized asset or liability, or a forecasted transaction). Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recorded in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income (loss) until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings.

F-20

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

People’s United formally documents at inception all relationships between the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. This process includes linking all derivatives that are designated as hedges to specific assets and liabilities, or to specific firm commitments or forecasted transactions. People’s United also formally assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of the hedged items. If it is determined that a derivative is not highly effective or has ceased to be a highly effective hedge, People’s United would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in AOCL and are amortized to earnings over the remaining period of the former hedging relationship, provided the hedged item continues to be outstanding or it is probable the forecasted transaction will occur.

People’s United uses the dollar offset method, regression analysis and scenario analysis to assess hedge effectiveness at inception and on an ongoing basis. Such methods are chosen based on the nature of the hedge strategy and are used consistently throughout the life of the hedging relationship.

Certain derivative financial instruments are offered to commercial customers to assist them in meeting their financing and investing objectives and for their risk management purposes. These derivative financial instruments consist primarily of interest rate swaps, but also include foreign exchange contracts. The interest rate and foreign exchange risks associated with customer interest rate swaps and foreign exchange contracts are mitigated by entering into similar derivatives having essentially offsetting terms with institutional counterparties.

Interest rate-lock commitments extended to borrowers relate to the origination of residential mortgage loans. To mitigate the IRR inherent in these commitments, People’s United enters into mandatory delivery and best efforts contracts to sell adjustable-rate and fixed-rate residential mortgage loans (servicing released). Forward commitments to sell and interest rate-lock commitments on residential mortgage loans are considered derivatives and their respective estimated fair values are adjusted based on changes in interest rates.

Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings, including customer derivatives, interest-rate lock commitments and forward sale commitments.

Balance Sheet Offsetting

Assets and liabilities relating to certain financial instruments, including derivatives, may be eligible for offset in the Consolidated Statements of Condition and/or subject to enforceable master netting arrangements or similar agreements. People’s United’s derivative transactions with institutional counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements, which include “right of set-off” provisions that provide for a single net settlement of all interest rate swap positions, as well as collateral, in the event of default on, or the termination of, any one contract. Nonetheless, the Company does not offset asset and liabilities under such arrangements in the Consolidated Statements of Condition.

Collateral (generally in the form of marketable debt securities) pledged by counterparties in connection with derivative transactions is not reported in the Consolidated Statements of Condition unless the counterparty defaults. Collateral that has been pledged by People’s United to counterparties continues to be reported in the Consolidated Statements of Condition unless the Company defaults.

F-21

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Fair Value Measurements

Accounting standards related to fair value measurements define fair value, provide a framework for measuring fair value and establish related disclosure requirements. Broadly, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accordingly, an “exit price” approach is required in determining fair value. In support of this principle, a fair value hierarchy has been established that prioritizes the inputs used to measure fair value, requiring entities to maximize the use of market or observable inputs (as more reliable measures) and minimize the use of unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs generally require significant management judgment.

The three levels within the fair value hierarchy are as follows:

• Level 1 – Unadjusted quoted market prices for identical assets or liabilities in active markets that the entity has the ability to access at the measurement date (such as active exchange-traded equity securities or mutual funds and certain U.S. and government agency debt securities).

• Level 2 – Observable inputs other than quoted prices included in Level 1, such as:

• quoted prices for similar assets or liabilities in active markets (such as U.S. agency and GSE issued mortgage-backed securities and CMOs);

• quoted prices for identical or similar assets or liabilities in less active markets (such as certain U.S. and government agency debt securities, and corporate and municipal debt securities that trade infrequently); and

• other inputs that (i) are observable for substantially the full term of the asset or liability (e.g. interest rates, yield curves, prepayment speeds, default rates, etc.) or (ii) can be corroborated by observable market data (such as interest rate and currency derivatives and certain other securities).

• Level 3 – Valuation techniques that require unobservable inputs that are supported by little or no market activity and are significant to the fair value measurement of the asset or liability (such as pricing models, discounted cash flow methodologies and similar techniques that typically reflect management’s own estimates of the assumptions a market participant would use in pricing the asset or liability).

People’s United maintains policies and procedures to value assets and liabilities using the most relevant data available.

Stock-Based Compensation

People’s United’s stock-based compensation plans provide for awards of stock options and restricted stock to directors, officers and employees. Costs resulting from the issuance of such share-based payment awards are required to be recognized in the financial statements based on the grant date fair value of the award. Stock-based compensation expense is recognized over the requisite service period, which is generally the vesting period.

F-22

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

New Accounting Standards

Standards effective in 2015

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure

In January 2014, the Financial Accounting Standards Board (the “FASB”) amended its standards with respect to the accounting for consumer mortgage loans collateralized by residential real estate to clarify that such loans should, upon foreclosure, be reclassified by a creditor as REO when either (i) the creditor obtains legal title to the real estate collateral or (ii) a deed in lieu of foreclosure, conveying all interest in the real estate to the creditor, is completed. In addition, the amendment requires a creditor to provide additional disclosures with respect to (i) the amount of residential real estate meeting the conditions set forth above and (ii) the recorded investment in consumer mortgage loans secured by residential real estate properties that are in the process of foreclosure. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2015 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Repurchase Agreements

In June 2014, the FASB amended its standards with respect to repurchase agreements to (i) require that repurchase-to-maturity transactions be accounted for as secured borrowings, thereby eliminating the possibility of such transactions qualifying for sale accounting treatment, and (ii) eliminate existing guidance for repurchase financings. The amendment also requires enhanced disclosures for certain transactions accounted for as secured borrowings and transfers accounted for as sales when the transferor also retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. In adopting this new guidance, all entities must report changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. This amendment became effective for People’s United on January 1, 2015 and did not have a significant impact on the Company’s Consolidated Financial Statements as none of the Company’s repurchase agreements represent repurchase-to-maturity transactions or repurchase financings and all repurchase agreements have been accounted for as secured borrowings.

Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure

In August 2014, the FASB amended its standards with respect to the classification of certain government-guaranteed residential mortgage loans to clarify that upon foreclosure of mortgage loans within the scope of the standard, a creditor will be required to reclassify the previously existing mortgage loan to a separate receivable from the guarantor, measured at the amount of the guarantee that it expects to collect. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2015 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Standards effective in 2016

Stock Compensation

In June 2014, the FASB amended its standards with respect to stock compensation to require that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. The amendment further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to those periods for which the requisite service has already been rendered. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. The adoption of this amendment, for which early adoption is permitted, is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

F-23

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Consolidation

In February 2015, the FASB amended its standards with respect to the analysis that a reporting entity must perform in determining whether certain types of legal entities should be consolidated. The amendment modifies the evaluation of whether limited partnerships or similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This new guidance, which can be applied retrospectively or through the use of the cumulative effect transition method, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) with early adoption permitted. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Presentation of Debt Issuance Costs

In April 2015, the FASB amended its standards with respect to the presentation of debt issuance costs by changing the required presentation of such costs from an asset on the balance sheet to a deduction from the related debt liability. For public business entities, this new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) and is to be applied retrospectively. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Retirement Benefits

In April 2015, the FASB amended its standards with respect to the accounting for retirement benefits by providing a practical expedient, for entities with fiscal year-ends that do not coincide with a month-end, permitting such entities to measure defined benefit plan assets and obligations using the month-end that is closest to its fiscal year-end. This practical expedient is to be applied consistently from year to year and to all plans if an entity has more than one plan. Further, in cases where a significant event caused by the entity (such as a plan amendment, curtailment or settlement) that requires the remeasurement of defined benefit plan assets and obligations does not coincide with a month-end, entities may elect to remeasure both plan assets and obligations using the month-end that is closest to the date of the significant event. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) and are to be applied prospectively. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Business Combinations

In September 2015, the FASB amended its standards with respect to business combinations to eliminate the requirement to restate prior period financial statements for measurement period adjustments. Instead, the amended guidance requires that, during the measurement period, an acquirer recognize adjustments of previously recorded provisional amounts in the reporting period in which such adjustments are determined. In doing so, the acquirer would be required to record the cumulative effect of measurement period adjustments on current and prior period earnings, including the prior period impact on depreciation, amortization or other income statement items. The amended standard also contains additional disclosure requirements with respect to measurement period adjustments. This new guidance is effective for fiscal years beginning after December 15, 2015 (January 1, 2016 for People’s United) and is to be applied prospectively. Earlier application is permitted for financial statements that have not yet been made available for issuance. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

F-24

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Standards effective in 2018

Revenue Recognition

In May 2014, the FASB amended its standards with respect to revenue recognition. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance, providing a unified model to determine when and how revenue is recognized. The underlying principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments also require enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. As originally issued, this new guidance, which can be applied retrospectively or through the use of the cumulative effect transition method, was to become effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2016 (January 1, 2017 for People’s United) and early adoption was not permitted. In July 2015, the FASB approved a one-year deferral of the effective date (to January 1, 2018 for People’s United) with early adoption, as of the original effective date, permitted. The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements.

Presentation of Deferred Taxes

In December 2015, the FASB amended its standards with respect to the presentation of deferred income taxes to eliminate the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial condition, thereby simplifying the presentation of deferred income taxes. For public business entities, this new amendment is effective for annual periods beginning after December 15, 2017 (January 1, 2018 for People’s United) and may be applied either prospectively or retrospectively to all periods presented. Earlier application of the amendment is permitted as of the beginning of an interim or annual reporting period. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Recognition and Measurement of Financial Instruments

In January 2016, the FASB amended its standards to address certain aspects of recognition, presentation and disclosure of financial instruments. The amended guidance (i) requires that equity investments be measured at fair value with changes in fair value recognized in net income and (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by permitting a qualitative assessment to identify impairment. The guidance also contains additional disclosure and presentation requirements associated with financial instruments. For public business entities this new guidance is effective in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United). The cumulative effect transition method will be applied to all outstanding instruments as of the date of adoption, while changes to the accounting for equity investments without readily determinable fair values will be applied prospectively. The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements.

F-25

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Standards effective in 2019

Accounting for Leases

In February 2016, the FASB amended its standards with respect to the accounting for leases. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and requires that an operating lease be recognized on the statement of financial condition as a “right-to-use” asset along with a corresponding liability representing the rent obligation. Key aspects of current lessor accounting remain unchanged from existing guidance. This standard is expected to result in an increase to assets and liabilities recognized and, therefore, increase risk-weighted assets for regulatory capital purposes. The guidance requires the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application and will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (January 1, 2019 for People’s United). The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements.

NOTE 2 – Cash and Short-Term Investments

A combination of reserves in the form of deposits with the FRB-NY and vault cash, totaling $86.0 million and $87.2 million at December 31, 2015 and 2014, respectively, were maintained to satisfy federal regulatory requirements. Vault cash is included in cash and due from banks and interest-bearing deposits at the FRB-NY are included in short-term investments in the Consolidated Statements of Condition. These deposits represent an alternative to overnight federal funds sold and had yields of 0.50% and 0.25% at December 31, 2015 and 2014, respectively.

Short-term investments consist of the following cash equivalents:

As of December 31 (in millions)	2015		2014
Interest-bearing deposits at the FRB-NY	$	333.7	$	626.5
Money market mutual funds		8.0		7.3
Other (1)		38.8		34.8
Total short-term investments	$	380.5	$	668.6

(1) Includes cash collateral posted for certain derivative positions.

In connection with its securities purchased under agreements to resell, People’s United takes delivery of collateral from all counterparties. The fair value of the collateral securing the agreements outstanding at December 31, 2014 was $100.4 million (no agreements were outstanding at December 31, 2015).

F-26

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 3 – Securities

The amortized cost, gross unrealized gains and losses, and fair value of People’s United’s securities available for sale and securities held to maturity are as follows:

As of December 31, 2015 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	363.7	$	0.2	$	(1.1	)	$	362.8
GSE residential mortgage-backed securities and CMOs		4,191.3		22.3		(48.9	)		4,164.7
Total debt securities		4,555.0		22.5		(50.0	)		4,527.5
Equity securities		0.2		—		—			0.2
Total securities available for sale	$	4,555.2	$	22.5	$	(50.0	)	$	4,527.7
Securities held to maturity:
Debt securities:
State and municipal	$	1,019.6	$	55.8	$	(0.1	)	$	1,075.3
GSE residential mortgage-backed securities		588.5		—		(2.8	)		585.7
Other		1.5		—		—			1.5
Total securities held to maturity	$	1,609.6	$	55.8	$	(2.9	)	$	1,662.5

As of December 31, 2014 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	56.5	$	0.3	$	—		$	56.8
GSE residential mortgage-backed securities and CMOs		3,943.4		39.7		(46.4	)		3,936.7
Total debt securities		3,999.9		40.0		(46.4	)		3,993.5
Equity securities		0.2		—		—			0.2
Total securities available for sale	$	4,000.1	$	40.0	$	(46.4	)	$	3,993.7
Securities held to maturity:
Debt securities:
State and municipal	$	832.8	$	47.4	$	(0.1	)	$	880.1
Other		1.5		—		—			1.5
Total securities held to maturity	$	834.3	$	47.4	$	(0.1	)	$	881.6

Securities available for sale with a fair value of $1.64 billion and $1.43 billion at December 31, 2015 and 2014, respectively, were pledged as collateral for public deposits and for other purposes.

F-27

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following table is a summary of the amortized cost, fair value and fully taxable equivalent (“FTE”) yield of debt securities as of December 31, 2015, based on remaining period to contractual maturity. Information for GSE residential mortgage-backed securities and CMOs is based on the final contractual maturity dates without considering repayments and prepayments.

	Available for Sale							Held to Maturity
(dollars in millions)	Amortized Cost		Fair Value		FTE Yield			Amortized Cost		Fair Value		FTE Yield
U.S. Treasury and agency:
Within 1 year	$	31.1	$	31.1		0.57	%	$	—	$	—		—	%
After 1 but within 5 years		332.6		331.7		1.05			—		—		—
Total		363.7		362.8		1.01			—		—		—
GSE residential mortgage-backed securities and CMOs:
After 5 but within 10 years		860.3		871.8		2.24			—		—		—
After 10 years		3,331.0		3,292.9		1.89			588.5		585.7		2.22
Total		4,191.3		4,164.7		1.96			588.5		585.7		2.22
State and municipal:
Within 1 year		—		—		—			3.9		3.9		4.20
After 1 but within 5 years		—		—		—			22.2		22.6		4.99
After 5 but within 10 years		—		—		—			353.0		376.9		3.36
After 10 years		—		—		—			640.5		671.9		4.56
Total		—		—		—			1,019.6		1,075.3		4.16
Other:
After 1 but within 5 years		—		—		—			1.5		1.5		2.10
Total		—		—		—			1.5		1.5		2.10
Total:
Within 1 year		31.1		31.1		0.57			3.9		3.9		4.20
After 1 but within 5 years		332.6		331.7		1.05			23.7		24.1		4.80
After 5 but within 10 years		860.3		871.8		2.24			353.0		376.9		3.36
After 10 years		3,331.0		3,292.9		1.89			1,229.0		1,257.6		3.44
Total	$	4,555.0	$	4,527.5		1.88	%	$	1,609.6	$	1,662.5		3.45	%

F-28

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following tables summarize debt securities with unrealized losses, segregated by the length of time the securities have been in a continuous unrealized loss position at the respective dates. Certain unrealized losses totaled less than $0.1 million.

	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months Or Longer					Total
As of December 31, 2015 (in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE residential mortgage-backed securities and CMOs	$	2,200.8	$	(20.3	)	$	933.9	$	(28.6	)	$	3,134.7	$	(48.9	)
U.S. Treasury and agency		346.3		(1.1	)		—		—			346.3		(1.1	)
Securities held to maturity:
GSE residential mortgage-backed securities		585.7		(2.8	)		—		—			585.7		(2.8	)
State and municipal		22.3		(0.1	)		3.7		—			26.0		(0.1	)
Total	$	3,155.1	$	(24.3	)	$	937.6	$	(28.6	)	$	4,092.7	$	(52.9	)
	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months Or Longer					Total
As of December 31, 2014 (in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE residential mortgage-backed securities and CMOs	$	111.9	$	(0.1	)	$	1,744.2	$	(46.3	)	$	1,856.1	$	(46.4	)
Securities held to maturity:
State and municipal		31.8		(0.1	)		—		—			31.8		(0.1	)
Total	$	143.7	$	(0.2	)	$	1,744.2	$	(46.3	)	$	1,887.9	$	(46.5	)

At December 31, 2015, approximately 11% of the 1,328 securities owned by the Company, consisting of 103 securities classified as available for sale and 48 securities classified as held to maturity, had gross unrealized losses totaling $50.0 million and $2.9 million, respectively. All of the GSE residential mortgage-backed securities and CMOs had AAA credit ratings and an average maturity of 12 years. The state and municipal securities had an average credit rating of AA and an average maturity of 12 years. The cause of the temporary impairment with respect to all of these securities is directly related to changes in interest rates.

Management believes that all gross unrealized losses within the securities portfolio at December 31, 2015 and 2014 are temporary impairments. Management does not intend to sell such securities nor is it more likely than not that management will be required to sell such securities prior to recovery. No other-than-temporary impairment losses were recognized in the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013.

F-29

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

People’s United uses the specific identification method to determine the cost of securities sold and records securities transactions on the trade date. The components of net security gains on debt securities are summarized below (gains for the year ended December 31, 2013 totaled less than $0.1 million). Net gains and losses on trading account securities, which are not included in the table below, totaled less than $0.1 million for each of the years ended December 31, 2015, 2014 and 2013.

Years ended December 31 (in millions)	2015			2014			2013
Debt securities:
Gains	$	0.3		$	4.4		$	—
Losses		(0.3	)		(1.4	)		—
Net security gains	$	—		$	3.0		$	—

The Bank, as a member of the FHLB of Boston, is currently required to purchase and hold shares of capital stock in the FHLB of Boston (total cost of $154.0 million and $164.4 million at December 31, 2015 and 2014, respectively) in an amount equal to its membership base investment plus an activity based investment determined according to the Bank’s level of outstanding FHLB advances. As a result of the Smithtown Bancorp, Inc. acquisition completed in 2010, the Bank acquired shares of capital stock in the FHLB of New York (total cost of $11.3 million at both December 31, 2015 and 2014). Based on the current capital adequacy and liquidity position of both the FHLB of Boston and the FHLB of New York, management believes there is no impairment in the Company’s investment at December 31, 2015 and the cost of the investment approximates fair value. Dividend income on FHLB capital stock totaled $4.6 million, $2.8 million and $0.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The Bank, as a member of the Federal Reserve Bank system, is currently required to purchase and hold shares of capital stock in the FRB-NY in an amount equal to 6% of its capital and surplus. The Bank’s net purchases of FRB-NY capital stock totaled $140.1 million in 2015. Based on the current capital adequacy and liquidity position of the FRB-NY, management believes there is no impairment in the Company’s investment at December 31, 2015 and the cost of the investment approximates fair value. Dividend income on FRB-NY capital stock totaled $7.1 million for the year ended December 31, 2015.

In December 2013, state and municipal securities with a fair value of $584.5 million, which were previously classified as available for sale, were transferred to held to maturity. The $37.0 million pre-tax loss associated with these securities that existed at the date of transfer is being amortized to interest income as an adjustment to yield over the remaining life of the underlying securities.

F-30

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 4 – Loans

For purposes of disclosures related to the credit quality of financing receivables and the allowance for loan losses, People’s United has identified two loan portfolio segments, Commercial and Retail, which are comprised of the following loan classes:

• Commercial Portfolio: commercial real estate; commercial and industrial; and equipment financing.

• Retail Portfolio: residential mortgage; home equity; and other consumer.

Loans acquired in connection with business combinations are referred to as ‘acquired’ loans as a result of the manner in which they are accounted for (see further discussion under ‘Acquired Loans’ in Note 1). All other loans are referred to as ‘originated’ loans. Accordingly, selected credit quality disclosures that follow are presented separately for the ‘originated’ loan portfolio and the ‘acquired’ loan portfolio.

The following table summarizes People’s United’s loans by loan portfolio segment and class:

	2015						2014
As of December 31 (in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Commercial:
Commercial real estate	$	9,696.9	$	331.9	$	10,028.8	$	8,960.3	$	444.0	$	9,404.3
Commercial and industrial		7,526.4		222.3		7,748.7		6,891.1		298.5		7,189.6
Equipment financing		2,957.6		15.7		2,973.3		2,839.0		26.5		2,865.5
Total commercial		10,484.0		238.0		10,722.0		9,730.1		325.0		10,055.1
Total Commercial Portfolio		20,180.9		569.9		20,750.8		18,690.4		769.0		19,459.4
Retail:
Residential mortgage:
Adjustable-rate		4,733.3		117.9		4,851.2		4,254.7		139.1		4,393.8
Fixed-rate		536.1		69.7		605.8		446.8		91.4		538.2
Total residential mortgage		5,269.4		187.6		5,457.0		4,701.5		230.5		4,932.0
Consumer:
Home equity		2,115.5		38.2		2,153.7		2,092.9		50.2		2,143.1
Other consumer		48.5		0.9		49.4		56.3		1.2		57.5
Total consumer		2,164.0		39.1		2,203.1		2,149.2		51.4		2,200.6
Total Retail Portfolio		7,433.4		226.7		7,660.1		6,850.7		281.9		7,132.6
Total loans	$	27,614.3	$	796.6	$	28,410.9	$	25,541.1	$	1,050.9	$	26,592.0

Net deferred loan costs, which are included in loans by respective class and accounted for as interest yield adjustments, totaled $59.8 million and $54.8 million at December 31, 2015 and 2014, respectively.

At December 31, 2015, 27%, 20% and 17% of the Company’s loans by outstanding principal amount were to customers located within Connecticut, New York and Massachusetts, respectively. Loans to customers located in the New England states as a group represented 59% and 61% of total loans at December 31, 2015 and 2014, respectively. Substantially all of the equipment financing portfolio (97% at both December 31, 2015 and 2014) was to customers located outside of New England. At December 31, 2015, 34% of the equipment financing portfolio was to customers located in Texas, California, Louisiana and New York, and no other state exposure was greater than 5%.

F-31

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Commercial real estate loans include construction loans totaling $630.6 million and $657.5 million at December 31, 2015 and 2014, respectively, net of the unadvanced portion of such loans totaling $314.1 million and $434.7 million, respectively.

At December 31, 2015, residential mortgage loans included $1.1 billion of interest-only loans, of which $0.5 million are stated-income loans, compared to $993.3 million and $1.0 million, respectively, at December 31, 2014. People’s United’s underwriting guidelines and requirements for such loans are generally more restrictive than those applied to other types of residential mortgage products. Also included in residential mortgage loans are construction loans totaling $105.7 million and $107.9 million at December 31, 2015 and 2014, respectively, net of the unadvanced portion of such loans totaling $38.6 million and $45.6 million, respectively.

People’s United sells newly-originated residential mortgage loans in the secondary market, without recourse. Net gains on sales of residential mortgage loans totaled $5.5 million, $2.9 million and $14.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. Loans held for sale at December 31, 2015 and 2014 consisted of newly-originated residential mortgage loans with carrying amounts of $34.5 million and $34.2 million, respectively. During 2015, 2014 and 2013, the Company sold acquired loans with outstanding principal balances totaling $24.1 million, $10.4 million and $12.4 million, respectively (carrying amounts of $22.3 million, $10.3 million and $10.2 million, respectively) and recognized net gains (losses) on sales totaling $1.7 million, $(0.9) million and $5.7 million, respectively.

The following table presents a summary, by loan portfolio segment, of activity in the allowance for loan losses for the years ended December 31, 2015, 2014 and 2013. With respect to the originated portfolio, an allocation of a portion of the allowance to one segment does not preclude its availability to absorb losses in another segment.

	Commercial									Retail
(in millions)	Originated			Acquired			Total			Originated			Acquired			Total			Total
Balance at December 31, 2012	$	157.5		$	10.5		$	168.0		$	20.0		$	—		$	20.0		$	188.0
Charge-offs		(29.7	)		(4.1	)		(33.8	)		(16.0	)		(0.3	)		(16.3	)		(50.1	)
Recoveries		3.7			—			3.7			2.5			—			2.5			6.2
Net loan charge-offs		(26.0	)		(4.1	)		(30.1	)		(13.5	)		(0.3	)		(13.8	)		(43.9	)
Provision for loan losses		27.0			3.4			30.4			12.5			0.8			13.3			43.7
Balance at December 31, 2013		158.5			9.8			168.3			19.0			0.5			19.5			187.8
Charge-offs		(22.3	)		(2.6	)		(24.9	)		(11.1	)		(0.1	)		(11.2	)		(36.1	)
Recoveries		3.6			—			3.6			2.4			—			2.4			6.0
Net loan charge-offs		(18.7	)		(2.6	)		(21.3	)		(8.7	)		(0.1	)		(8.8	)		(30.1	)
Provision for loan losses		29.8			2.6			32.4			8.2			—			8.2			40.6
Balance at December 31, 2014		169.6			9.8			179.4			18.5			0.4			18.9			198.3
Charge-offs		(20.1	)		—			(20.1	)		(7.9	)		—			(7.9	)		(28.0	)
Recoveries		4.9			—			4.9			2.4			—			2.4			7.3
Net loan charge-offs		(15.2	)		—			(15.2	)		(5.5	)		—			(5.5	)		(20.7	)
Provision for loan losses		27.4			(1.9	)		25.5			8.1			(0.2	)		7.9			33.4
Balance at December 31, 2015	$	181.8		$	7.9		$	189.7		$	21.1		$	0.2		$	21.3		$	211.0

F-32

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following is a summary, by loan portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio balances:

	Originated Loans Individually Evaluated for Impairment				Originated Loans Collectively Evaluated for Impairment				Acquired Loans (Discounts Related to Credit Quality)				Total
As of December 31, 2015 (in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	155.1	$	5.5	$	20,025.8	$	176.3	$	569.9	$	7.9	$	20,750.8	$	189.7
Retail		97.0		3.9		7,336.4		17.2		226.7		0.2		7,660.1		21.3
Total	$	252.1	$	9.4	$	27,362.2	$	193.5	$	796.6	$	8.1	$	28,410.9	$	211.0
	Originated Loans Individually Evaluated for Impairment				Originated Loans Collectively Evaluated for Impairment				Acquired Loans (Discounts Related to Credit Quality)				Total
As of December 31, 2014 (in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	174.5	$	7.6	$	18,515.9	$	162.0	$	769.0	$	9.8	$	19,459.4	$	179.4
Retail		95.0		3.9		6,755.7		14.6		281.9		0.4		7,132.6		18.9
Total	$	269.5	$	11.5	$	25,271.6	$	176.6	$	1,050.9	$	10.2	$	26,592.0	$	198.3

The recorded investments, by class of loan, of originated non-performing loans are summarized as follows:

As of December 31 (in millions)	2015		2014		2013
Commercial:
Commercial and industrial	$	44.9	$	55.8	$	43.8
Commercial real estate		30.2		60.2		70.8
Equipment financing		27.5		25.4		23.2
Total (1)		102.6		141.4		137.8
Retail:
Residential mortgage		37.2		37.6		58.9
Home equity		19.5		17.9		19.8
Other consumer		0.1		0.1		0.1
Total (2)		56.8		55.6		78.8
Total	$	159.4	$	197.0	$	216.6

(1) Reported net of government guarantees totaling $16.9 million, $17.6 million and $19.4 million at December 31, 2015, 2014 and 2013, respectively. These government guarantees relate, almost entirely, to guarantees provided by the Small Business Administration as well as selected other Federal agencies and represent the carrying value of the loans that are covered by such guarantees, the extent of which (i.e. full or partial) varies by loan. At December 31, 2015, the principal loan classes to which these government guarantees relate are commercial and industrial loans (99%) and commercial real estate loans (1%).

(2) Includes $19.9 million, $18.9 million and $28.7 million of loans in the process of foreclosure at December 31, 2015, 2014 and 2013, respectively.

F-33

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The preceding table excludes acquired loans that are (i) accounted for as purchased credit impaired loans or (ii) covered by an FDIC loss-share agreement (“LSA”) totaling $27.7 million and $2.3 million, respectively, at December 31, 2015; $100.6 million and $3.0 million, respectively, at December 31, 2014; and $138.0 million and $4.5 million, respectively, at December 31, 2013. Such loans otherwise meet People’s United’s definition of a non-performing loan but are excluded because the loans are included in loan pools that are considered performing and/or credit losses are covered by an FDIC LSA. The discounts arising from recording these loans at fair value were due, in part, to credit quality. The acquired loans are generally accounted for on a pool basis and the accretable yield on the pools is being recognized as interest income over the life of the loans based on expected cash flows at the pool level.

If interest payments on all originated loans classified as non-performing at December 31, 2015, 2014 and 2013 had been made during the respective years in accordance with the loan agreements, interest income of $14.1 million, $16.1 million and $17.1 million would have been recognized on such loans for the years ended December 31, 2015, 2014 and 2013, respectively. Interest income actually recognized on originated non-performing loans totaled $1.6 million, $3.2 million and $2.6 million for the years ended December 31, 2015, 2014 and 2013, respectively.

People’s United’s recorded investment in originated loans classified as TDRs totaled $195.7 million and $181.6 million at December 31, 2015 and 2014, respectively. The related allowance for loan losses at December 31, 2015 and 2014 was $5.9 million and $7.1 million, respectively. Interest income recognized on TDRs totaled $4.6 million, $3.8 million and $3.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. Fundings under commitments to lend additional amounts to borrowers with loans classified as TDRs were immaterial for the years ended December 31, 2015, 2014 and 2013. Originated loans that were modified and classified as TDRs during 2015 principally involve reduced payment and/or payment deferral, extension of term (generally no more than two years for commercial loans and nine years for retail loans) and/or a temporary reduction of interest rate (generally less than 200 basis points).

F-34

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following tables summarize, by class of loan, the recorded investments in loans modified as TDRs during the years ended December 31, 2015 and 2014. For purposes of this disclosure, recorded investments represent amounts immediately prior to and subsequent to the restructuring.

	Year ended December 31, 2015
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		26	$	15.2	$	15.2
Commercial and industrial (2)		61		80.6		80.6
Equipment financing (3)		48		28.5		28.5
Total		135		124.3		124.3
Retail:
Residential mortgage (4)		66		20.1		20.1
Home equity (5)		98		9.5		9.5
Other consumer		—		—		—
Total		164		29.6		29.6
Total		299	$	153.9	$	153.9

(1) Represents the following concessions: extension of term (21 contracts; recorded investment of $8.9 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $1.2 million); or a combination of concessions (3 contracts; recorded investment of $5.1 million).

(2) Represents the following concessions: extension of term (35 contracts; recorded investment of $41.1 million); reduced payment and/or payment deferral (20 contracts; recorded investment of $35.9 million); or a combination of concessions (6 contracts; recorded investment of $3.6 million).

(3) Represents the following concessions: extension of term (1 contract; recorded investment of $0.1 million); reduced payment and/or payment deferral (38 contracts; recorded investment of $21.5 million); or a combination of concessions (9 contracts; recorded investment of $6.9 million).

(4) Represents the following concessions: loans restructured through bankruptcy (24 contracts; recorded investment of $5.9 million); reduced payment and/or payment deferral (13 contracts; recorded investment of $4.7 million); temporary rate reduction (2 contracts; recorded investment of $0.3 million); or a combination of concessions (27 contracts; recorded investment of $9.2 million).

(5) Represents the following concessions: loans restructured through bankruptcy (61 contracts; recorded investment of $5.2 million); reduced payment and/or payment deferral (7 contracts; recorded investment of $0.8 million); temporary rate reduction (1 contract; recorded investment of $0.5 million); or a combination of concessions (29 contracts; recorded investment of $3.0 million).

F-35

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

	Year ended December 31, 2014
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		25	$	36.2	$	36.2
Commercial and industrial (2)		50		43.1		43.1
Equipment financing (3)		28		7.1		7.1
Total		103		86.4		86.4
Retail:
Residential mortgage (4)		130		40.3		40.3
Home equity (5)		135		12.2		12.2
Other consumer		—		—		—
Total		265		52.5		52.5
Total		368	$	138.9	$	138.9

(1) Represents the following concessions: extension of term (16 contracts; recorded investment of $13.5 million); reduced payment and/or payment deferral (4 contracts; recorded investment of $1.8 million); temporary rate reduction (1 contract; recorded investment of $18.2 million); or a combination of concessions (4 contracts; recorded investment of $2.7 million).

(2) Represents the following concessions: extension of term (20 contracts; recorded investment of $15.3 million); reduced payment and/or payment deferral (8 contracts; recorded investment of $2.4 million); or a combination of concessions (22 contracts; recorded investment of $25.4 million).

(3) Represents the following concessions: reduced payment and/or payment deferral (11 contracts; recorded investment of $2.0 million); or a combination of concessions (17 contracts; recorded investment of $5.1 million).

(4) Represents the following concessions: loans restructured through bankruptcy (29 contracts; recorded investment of $5.0 million); extension of term (1 contract; recorded investment of $0.6 million); reduced payment and/or payment deferral (32 contracts; recorded investment of $10.0 million); or a combination of concessions (68 contracts; recorded investment of $24.7 million).

(5) Represents the following concessions: loans restructured through bankruptcy (67 contracts; recorded investment of $5.6 million); reduced payment and/or payment deferral (20 contracts; recorded investment of $2.3 million); temporary rate reduction (2 contracts; recorded investment of $0.6 million); or a combination of concessions (46 contracts; recorded investment of $3.7 million).

F-36

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following is a summary, by class of loan, of information related to TDRs of originated loans completed within the previous 12 months that subsequently defaulted during the years ended December 31, 2015 and 2014. For purposes of this disclosure, the previous 12 months is measured from January 1 of the respective prior year and a default represents a previously-modified loan that became past due 30 days or more during 2015 or 2014.

	2015				2014
Years ended December 31 (dollars in millions)	Number of Contracts		Recorded Investment as of Period End		Number of Contracts		Recorded Investment as of Period End
Commercial:
Commercial real estate		5	$	3.2		6	$	3.8
Commercial and industrial		4		1.2		4		1.1
Equipment financing		9		4.5		4		0.8
Total		18		8.9		14		5.7
Retail:
Residential mortgage		17		2.6		42		7.8
Home equity		16		1.8		24		1.6
Other consumer		—		—		—		—
Total		33		4.4		66		9.4
Total		51	$	13.3		80	$	15.1

F-37

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

People’s United’s impaired loans consist of certain originated loans, including all TDRs. The following table summarizes, by class of loan, information related to individually-evaluated impaired loans within the originated portfolio.

	2015						2014
As of December 31 (in millions)	Unpaid Principal Balance		Recorded Investment		Related Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Related Allowance for Loan Losses
Without a related allowance for loan losses:
Commercial:
Commercial real estate	$	46.5	$	45.3	$	—	$	57.1	$	55.8	$	—
Commercial and industrial		53.2		50.8		—		51.7		48.6		—
Equipment financing		32.6		26.0		—		30.2		21.4		—
Retail:
Residential mortgage		67.2		60.4		—		65.4		58.9		—
Home equity		23.3		20.5		—		21.3		18.3		—
Other consumer		—		—		—		—		—		—
Total	$	222.8	$	203.0	$	—	$	225.7	$	203.0	$	—
With a related allowance for loan losses:
Commercial:
Commercial real estate	$	18.8	$	14.7	$	1.9	$	52.1	$	27.8	$	4.0
Commercial and industrial		19.2		14.7		3.3		21.4		17.4		3.5
Equipment financing		3.8		3.6		0.3		3.6		3.5		0.1
Retail:
Residential mortgage		14.1		14.0		2.9		15.6		15.3		2.6
Home equity		2.3		2.1		1.0		2.6		2.5		1.3
Other consumer		—		—		—		—		—		—
Total	$	58.2	$	49.1	$	9.4	$	95.3	$	66.5	$	11.5
Total impaired loans:
Commercial:
Commercial real estate	$	65.3	$	60.0	$	1.9	$	109.2	$	83.6	$	4.0
Commercial and industrial		72.4		65.5		3.3		73.1		66.0		3.5
Equipment financing		36.4		29.6		0.3		33.8		24.9		0.1
Total		174.1		155.1		5.5		216.1		174.5		7.6
Retail:
Residential mortgage		81.3		74.4		2.9		81.0		74.2		2.6
Home equity		25.6		22.6		1.0		23.9		20.8		1.3
Other consumer		—		—		—		—		—		—
Total		106.9		97.0		3.9		104.9		95.0		3.9
Total	$	281.0	$	252.1	$	9.4	$	321.0	$	269.5	$	11.5

F-38

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes, by class of loan, the average recorded investment and interest income recognized on impaired loans for the periods indicated. The average recorded investment amounts are based on month-end balances.

	2015				2014				2013
Years ended December 31 (in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	65.6	$	1.6	$	76.6	$	1.3	$	84.1	$	1.0
Commercial and industrial		71.6		1.8		46.4		1.1		58.5		1.0
Equipment financing		28.0		0.9		28.6		0.7		32.1		1.5
Total		165.2		4.3		151.6		3.1		174.7		3.5
Retail:
Residential mortgage		75.2		1.5		71.8		1.5		55.0		1.1
Home equity		21.2		0.3		18.0		0.2		14.0		0.1
Other consumer		—		—		—		—		—		—
Total		96.4		1.8		89.8		1.7		69.0		1.2
Total	$	261.6	$	6.1	$	241.4	$	4.8	$	243.7	$	4.7

The following tables summarize, by class of loan, aging information for originated loans:

			Past Due
As of December 31, 2015 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	9,667.7	$	15.0	$	14.2	$	29.2	$	9,696.9
Commercial and industrial		7,466.5		13.1		46.8		59.9		7,526.4
Equipment financing		2,886.7		63.9		7.0		70.9		2,957.6
Total		20,020.9		92.0		68.0		160.0		20,180.9
Retail:
Residential mortgage		5,212.9		31.1		25.4		56.5		5,269.4
Home equity		2,098.9		7.1		9.5		16.6		2,115.5
Other consumer		48.2		0.2		0.1		0.3		48.5
Total		7,360.0		38.4		35.0		73.4		7,433.4
Total originated loans	$	27,380.9	$	130.4	$	103.0	$	233.4	$	27,614.3

Included in the “Current” and “30-89 Days” categories above are early non-performing commercial real estate loans, commercial and industrial loans, and equipment financing loans totaling $16.0 million, $15.0 million and $20.5 million, respectively, and $21.8 million of retail loans in the process of foreclosure or bankruptcy. These loans are less than 90 days past due but have been placed on non-accrual status as a result of having been identified as presenting uncertainty with respect to the collectability of interest and principal.

F-39

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

			Past Due
As of December 31, 2014 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	8,908.0	$	17.6	$	34.7	$	52.3	$	8,960.3
Commercial and industrial		6,814.9		32.4		43.8		76.2		6,891.1
Equipment financing		2,793.3		41.0		4.7		45.7		2,839.0
Total		18,516.2		91.0		83.2		174.2		18,690.4
Retail:
Residential mortgage		4,647.3		29.1		25.1		54.2		4,701.5
Home equity		2,079.3		5.0		8.6		13.6		2,092.9
Other consumer		55.8		0.4		0.1		0.5		56.3
Total		6,782.4		34.5		33.8		68.3		6,850.7
Total originated loans	$	25,298.6	$	125.5	$	117.0	$	242.5	$	25,541.1

Included in the “Current” and “30-89 Days” categories above are early non-performing commercial real estate loans, commercial and industrial loans, and equipment financing loans totaling $25.6 million, $29.5 million and $20.7 million, respectively, and $21.8 million of retail loans in the process of foreclosure or bankruptcy. These loans are less than 90 days past due but have been placed on non-accrual status as a result of having been identified as presenting uncertainty with respect to the collectability of interest and principal.

Commercial Credit Quality Indicators

The Company utilizes an internal loan risk rating system as a means of monitoring portfolio credit quality and identifying both problem and potential problem loans. Under the Company’s risk rating system, loans not meeting the criteria for problem and potential problem loans as specified below are considered to be “Pass”-rated loans. Problem and potential problem loans are classified as either “Special Mention,” “Substandard” or “Doubtful.” Loans that do not currently expose the Company to sufficient enough risk of loss to warrant classification as either Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are classified as Special Mention. Substandard loans represent those credits characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful possess all the weaknesses inherent in those classified Substandard with the added characteristic that collection or liquidation in full, on the basis of existing facts, conditions and values, is highly questionable and/or improbable.

Risk ratings on commercial loans are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently, if warranted. The Company’s internal Loan Review function is responsible for independently evaluating the appropriateness of those credit risk ratings in connection with its cyclical reviews, the approach to which is risk-based and determined by reference to underlying portfolio credit quality and the results of prior reviews. Differences in risk ratings noted in conjunction with such periodic portfolio loan reviews, if any, are reported to management each month.

F-40

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Retail Credit Quality Indicators

Pools of smaller-balance, homogeneous loans with similar risk and loss characteristics are also assessed for probable losses. These loan pools include residential mortgage, home equity and other consumer loans that are not assigned individual loan risk ratings. Rather, the assessment of these portfolios is based upon a consideration of recent historical loss experience, broader portfolio indicators, including trends in delinquencies, non-performing loans and portfolio concentrations, and portfolio-specific risk characteristics, the combination of which determines whether a loan is classified as “High”, “Moderate” or “Low” risk.

The portfolio-specific risk characteristics considered include: (i) collateral values/LTV ratios (above and below 70%); (ii) borrower credit scores under the FICO scoring system (above and below a score of 680); and (iii) other relevant portfolio risk elements such as income verification at the time of underwriting (stated income vs. non-stated income) and the property’s intended use (owner occupied, non-owner occupied, second home, etc.). In classifying a loan as either “High”, “Moderate” or “Low” risk, the combination of each of the aforementioned risk characteristics is considered for that loan, resulting, effectively, in a “matrix approach” to its risk classification. These risk classifications are reviewed quarterly to ensure that they continue to be appropriate in light of changes within the portfolio and/or economic indicators as well as other industry developments.

For example, to the extent LTV ratios exceed 70% (reflecting a weaker collateral position for the Company) or borrower FICO scores are less than 680 (reflecting weaker financial standing and/or credit history of the customer), the loans are considered to have an increased level of inherent loss. As a result, a loan with a combination of these characteristics would generally be classified as “High” risk. Conversely, as LTV ratios decline (reflecting a stronger collateral position for the Company) or borrower FICO scores exceed 680 (reflecting stronger financial standing and/or credit history of the customer), the loans are considered to have a decreased level of inherent loss. A loan with a combination of these characteristics would generally be classified as “Low” risk. This analysis also considers (i) the extent of underwriting that occurred at the time of origination (direct income verification provides further support for credit decisions) and (ii) the property’s intended use (owner-occupied properties are less likely to default compared to ‘investment-type’ non-owner occupied properties, second homes, etc.). Loans not otherwise deemed to be “High” or “Low” risk are classified as “Moderate” risk.

LTV ratios and FICO scores are determined at origination and updated periodically throughout the life of the loan. LTV ratios are updated for loans 90 days past due and FICO scores are updated for the entire portfolio quarterly. The portfolio stratification (“High”, “Moderate” and “Low” risk) and identification of the corresponding credit quality indicators also occurs quarterly.

Commercial and Retail loans are also evaluated to determine whether they are impaired loans, which are included in the tabular disclosures of credit quality indicators that follow.

Acquired Loans Credit Quality Indicators

Upon acquiring a loan portfolio, the Company’s internal Loan Review function undertakes the process of assigning risk ratings to all commercial loans in accordance with the Company’s established policy, which may differ in certain respects from the risk rating policy of the predecessor company. The length of time necessary to complete this process varies based on the size of the acquired portfolio, the quality of the documentation maintained in the underlying loan files and the extent to which the predecessor company followed a risk rating approach comparable to People’s United’s. As a result, while acquired loans are risk rated, there are occasions when such ratings may be deemed “preliminary” until the Company’s re-rating process has been completed.

F-41

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Acquired loans are initially recorded at fair value, determined based upon an estimate of the amount and timing of both principal and interest cash flows expected to be collected and discounted using a market interest rate. The difference between contractually required principal and interest payments at the acquisition date and the undiscounted cash flows expected to be collected at the acquisition date is referred to as the “nonaccretable difference”, which includes an estimate of future credit losses expected to be incurred over the life of the portfolio. A decrease in the expected cash flows in subsequent periods requires the establishment of an allowance for loan losses at that time. At December 31, 2015 and 2014, the allowance for loan losses on acquired loans was $8.1 million and $10.2 million, respectively.

The following is a summary, by class of loan, of credit quality indicators:

As of December 31, 2015 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,438.6	$	7,153.4	$	2,550.0	$	19,142.0
Special mention		130.6		121.0		119.1		370.7
Substandard		127.7		250.5		288.5		666.7
Doubtful		—		1.5		—		1.5
Total originated loans		9,696.9		7,526.4		2,957.6		20,180.9
Acquired loans:
Pass		260.9		175.9		6.1		442.9
Special mention		20.1		6.6		5.0		31.7
Substandard		49.1		39.8		4.6		93.5
Doubtful		1.8		—		—		1.8
Total acquired loans		331.9		222.3		15.7		569.9
Total	$	10,028.8	$	7,748.7	$	2,973.3	$	20,750.8
As of December 31, 2015 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	2,579.3	$	959.2	$	25.8	$	3,564.3
Moderate risk		2,208.6		651.2		7.9		2,867.7
High risk		481.5		505.1		14.8		1,001.4
Total originated loans		5,269.4		2,115.5		48.5		7,433.4
Acquired loans:
Low risk		97.7		—		—		97.7
Moderate risk		36.2		—		—		36.2
High risk		53.7		38.2		0.9		92.8
Total acquired loans		187.6		38.2		0.9		226.7
Total	$	5,457.0	$	2,153.7	$	49.4	$	7,660.1

F-42

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

As of December 31, 2014 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	8,730.9	$	6,477.4	$	2,481.2	$	17,689.5
Special mention		82.4		114.2		110.6		307.2
Substandard		135.3		297.3		247.2		679.8
Doubtful		11.7		2.2		—		13.9
Total originated loans		8,960.3		6,891.1		2,839.0		18,690.4
Acquired loans:
Pass		302.5		174.5		7.6		484.6
Special mention		20.9		52.8		0.7		74.4
Substandard		113.5		55.0		18.2		186.7
Doubtful		7.1		16.2		—		23.3
Total acquired loans		444.0		298.5		26.5		769.0
Total	$	9,404.3	$	7,189.6	$	2,865.5	$	19,459.4
As of December 31, 2014 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	2,280.6	$	931.5	$	29.5	$	3,241.6
Moderate risk		1,921.6		597.1		8.3		2,527.0
High risk		499.3		564.3		18.5		1,082.1
Total originated loans		4,701.5		2,092.9		56.3		6,850.7
Acquired loans:
Low risk		107.0		—		—		107.0
Moderate risk		50.5		—		—		50.5
High risk		73.0		50.2		1.2		124.4
Total acquired loans		230.5		50.2		1.2		281.9
Total	$	4,932.0	$	2,143.1	$	57.5	$	7,132.6

Acquired Loans

At the respective acquisition dates in 2011 and 2010, on an aggregate basis, the acquired loan portfolio had contractually required principal and interest payments receivable of $7.57 billion; expected cash flows of $7.02 billion; and a fair value (initial carrying amount) of $5.36 billion. The difference between the contractually required principal and interest payments receivable and the expected cash flows ($550.9 million) represented the initial nonaccretable difference. The difference between the expected cash flows and fair value ($1.66 billion) represented the initial accretable yield. Both the contractually required principal and interest payments receivable and the expected cash flows reflect anticipated prepayments, determined based on historical portfolio experience. At December 31, 2015, the outstanding principal balance and carrying amount of the acquired loan portfolio were $901.9 million and $796.6 million, respectively ($1.18 billion and $1.05 billion, respectively, at December 31, 2014). At December 31, 2015, the aggregate remaining nonaccretable difference applicable to acquired loans totaled $82.9 million.

F-43

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes activity in the accretable yield for the acquired loan portfolio:

Years ended December 31 (in millions)	2015			2014			2013
Balance at beginning of period	$	396.3		$	639.7		$	890.2
Accretion		(55.5	)		(81.0	)		(127.1	)
Reclassification from nonaccretable difference for loans with improved cash flows (1)		1.1			6.7			5.3
Other changes in expected cash flows (2)		(45.9	)		(169.1	)		(128.7	)
Balance at end of period	$	296.0		$	396.3		$	639.7

(1) Results in increased interest accretion as a prospective yield adjustment over the remaining life of the corresponding pool of loans.

(2) Represents changes in cash flows expected to be collected due to factors other than credit (e.g. changes in prepayment assumptions and/or changes in interest rates on variable rate loans), as well as loan sales, modifications and payoffs.

FDIC Loss-Share Receivable

On April 16, 2010, the Bank entered into a definitive purchase and assumption agreement (the “Agreement”) with the FDIC pursuant to which the Bank assumed all of the deposits, certain assets and the banking operations of Butler Bank. The Agreement also provides for loss-share coverage by the FDIC, up to certain limits, on all covered assets (loans and REO). The FDIC is obligated to reimburse the Bank for 80% of any future losses on covered assets up to $34.0 million. The Bank will reimburse the FDIC for 80% of recoveries with respect to losses for which the FDIC paid 80% reimbursement under the loss-sharing coverage.

The asset arising from the loss-sharing coverage, referred to as the “FDIC loss-share receivable” is included in other assets in the Consolidated Statements of Condition. The FDIC loss-share receivable is measured separately from the covered loans because the coverage is not contractually embedded in the loans and is not transferable should the Bank choose to dispose of the covered loans. The FDIC loss-share receivable will be reduced as losses are realized on covered assets and as loss-sharing payments are received from the FDIC. Realized losses in excess of the acquisition date estimates will result in an increase in the FDIC loss-share receivable. Conversely, the FDIC loss-share receivable will be reduced if realized losses are less than the estimates at acquisition. The amount ultimately collected for the FDIC loss-share receivable is dependent upon the performance of the underlying covered assets over time and claims submitted to the FDIC. In the event that losses under the loss-share coverage do not reach expected levels, the Bank has agreed to make a cash payment to the FDIC on approximately the tenth anniversary of the Agreement.

F-44

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 5 – Goodwill and Other Acquisition-Related Intangible Assets

Goodwill

Changes in the carrying amount of People’s United’s goodwill are summarized as follows for the year ended December 31, 2015. There were no changes in goodwill during 2014.

	Operating Segment
(in millions)	Commercial Banking		Retail Banking		Wealth Management		Total
Balance at December 31, 2014	$	1,222.8	$	681.9	$	49.8	$	1,954.5
Acquisition of insurance brokerage firm		—		—		4.2		4.2
Balance at December 31, 2015	$	1,222.8	$	681.9	$	54.0	$	1,958.7

In October 2015, PUIA acquired Kesten-Brown Insurance, LLC (“Kesten-Brown”), a Connecticut-based insurance brokerage firm that focuses on commercial lines and employee benefits, in an all-cash transaction. In connection with the acquisition, the Company recorded goodwill of $4.2 million, other acquisition-related intangible assets, consisting of insurance relationships, of $5.0 million and a deferred tax asset of $2.9 million.

Acquisitions have been undertaken with the objective of expanding the Company’s business, both geographically and through product offerings, as well as realizing synergies and economies of scale by combining with the acquired entities. For these reasons, a market-based premium was generally paid for the acquired entities which, in turn, resulted in the recognition of goodwill, representing the excess of the respective purchase prices over the estimated fair value of the net assets acquired.

All of People’s United’s tax deductible goodwill was created in transactions in which the Company purchased the assets of the target (as opposed to purchasing the issued and outstanding stock of the target). At December 31, 2015 and 2014, tax deductible goodwill totaled $24.1 million and $13.0 million, respectively, and related, almost entirely, to the Kesten-Brown and Butler Bank acquisitions.

F-45

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Other Acquisition-Related Intangible Assets

The following is a summary of People’s United’s other acquisition-related intangible assets:

	2015						2014
As of December 31 (in millions)	Gross Amount		Accumulated Amortization		Carrying Amount		Gross Amount		Accumulated Amortization		Carrying Amount
Trade name intangible	$	122.7	$	42.8	$	79.9	$	122.7	$	34.9	$	87.8
Core deposit intangible		143.8		120.0		23.8		143.8		107.3		36.5
Trust relationships		42.7		22.8		19.9		42.7		20.0		22.7
Insurance relationships		36.5		31.0		5.5		31.5		30.5		1.0
Total other acquisition-related intangible assets	$	345.7	$	216.6	$	129.1	$	340.7	$	192.7	$	148.0

Other acquisition-related intangible assets have an original weighted-average amortization period of 14 years. Amortization expense of other acquisition-related intangible assets totaled $23.9 million, $24.8 million and $26.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Scheduled amortization expense attributable to other acquisition-related intangible assets for each of the next five years is as follows: $23.2 million in 2016; $22.1 million in 2017; $10.7 million in 2018; $9.9 million in 2019; and $9.5 million in 2020. There were no impairment losses relating to goodwill or other acquisition-related intangible assets recorded during the years ended December 31, 2015, 2014 and 2013.

NOTE 6 – Premises and Equipment

The components of premises and equipment are summarized below:

As of December 31 (in millions)	2015		2014
Land	$	38.8	$	39.5
Buildings		267.6		269.2
Leasehold improvements		158.2		161.6
Furniture and equipment		225.3		219.0
Total		689.9		689.3
Less: Accumulated depreciation and amortization		432.1		411.5
Total premises and equipment, net	$	257.8	$	277.8

Depreciation and amortization expense included in occupancy and equipment expense in the Consolidated Statements of Income totaled $39.3 million, $39.6 million and $40.3 million for the years ended December 31, 2015, 2014 and 2013, respectively.

F-46

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 7 – Other Assets and Other Liabilities

The components of other assets are as follows:

As of December 31 (in millions)	2015		2014
Leased equipment	$	194.4	$	180.9
Fair value of derivative financial instruments (notes 18 and 20)		158.2		132.4
Accrued interest receivable		90.6		82.6
Affordable housing investments (note 11)		83.5		69.6
Assets held in trust for supplemental retirement plans (note 16)		36.5		37.1
Receivables arising from securities brokerage and insurance businesses		33.7		34.8
Funded status of defined benefit pension plans (note 16)		26.6		—
Current income tax receivable (note 11)		26.3		21.1
Investment in joint venture (1)		22.0		21.3
Economic development investments		19.8		19.4
Other prepaid expenses		15.3		16.8
Loans in process		13.1		19.6
Repossessed assets		9.5		2.5
REO:
Residential		7.1		13.6
Commercial		5.5		11.0
FDIC loss-share receivable (note 4)		3.5		5.7
Net deferred tax asset (note 11)		1.9		7.0
Other (2)		38.7		44.5
Total other assets	$	786.2	$	719.9

(1) During the quarter ended June 30, 2014, the Bank formed a joint venture with Vantiv, Inc. to provide a comprehensive suite of payment solutions to businesses throughout the Bank’s footprint. The Bank retained a 49% minority interest in the joint venture and recognized a $20.6 million gain, net of related expenses, resulting from its formation. The gain represented the fair value of the Bank’s entire portfolio of merchant contracts that were contributed to the joint venture and which previously had a zero book basis. The investment in the joint venture is accounted for using the equity method of accounting.

(2) During the quarter ended December 31, 2015, the Bank sold its payroll services business and recognized a $9.2 million gain, net of related expenses. The gain represented the fair value of the Bank’s entire portfolio of payroll services customer contracts, which previously had a zero book basis. In connection with this transaction, the Bank recorded a contingent receivable totaling $2.8 million, which is included in other.

F-47

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The components of other liabilities are as follows:

As of December 31 (in millions)	2015		2014
Fair value of derivative financial instruments (notes 18 and 20)	$	109.5	$	97.0
Liabilities for supplemental retirement plans (note 16)		63.9		60.4
Accrued employee benefits		48.4		42.0
Accrued expenses payable		43.7		55.2
Payables arising from securities brokerage and insurance businesses		34.7		37.6
Other postretirement plan (note 16)		14.0		14.6
Accrued interest payable		13.3		13.7
Liability for unsettled purchases of securities		5.0		91.5
Funded status of defined benefit pension plans (note 16)		—		34.9
Other (1)		49.9		53.7
Total other liabilities	$	382.4	$	500.6

(1) Includes a contingent payable totaling $2.0 million relating to the Kesten-Brown acquisition (see Note 5).

NOTE 8 – Deposits

The following is an analysis of People’s United’s total deposits by product type:

	2015					2014
As of December 31 (dollars in millions)	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Non-interest-bearing	$	6,178.6		—	%	$	5,655.1		—	%
Savings, interest-bearing checking and money market		17,420.7		0.21			15,252.4		0.19
Time deposits maturing:
Within 3 months		991.5		0.69			1,254.3		0.63
After 3 but within 6 months		679.6		0.86			912.5		0.62
After 6 months but within 1 year		1,915.6		1.10			1,306.7		0.79
After 1 but within 2 years		636.1		1.06			1,341.0		1.36
After 2 but within 3 years		153.5		0.98			230.9		1.40
After 3 but within 4 years		101.9		1.46			85.5		1.07
After 4 but within 5 years		339.6		1.81			96.2		1.51
After 5 years		0.3		2.44			3.6		2.45
Total		4,818.1		1.03			5,230.7		0.91
Total deposits	$	28,417.4		0.30	%	$	26,138.2		0.29	%

Time deposits issued in amounts of $100,000 or more totaled $2.1 billion at both December 31, 2015 and 2014. Overdrafts of non-interest-bearing deposit accounts totaling $1.6 million and $2.6 million at December 31, 2015 and 2014, respectively, have been classified as loans.

Interest expense on deposits is summarized as follows:

Years ended December 31 (in millions)	2015		2014		2013
Savings, interest-bearing checking and money market	$	43.5	$	36.7	$	33.0
Time		52.0		44.2		48.1
Total	$	95.5	$	80.9	$	81.1

F-48

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 9 – Borrowings

People’s United’s borrowings are summarized as follows:

	2015					2014
As of December 31 (dollars in millions)	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Fixed-rate FHLB advances maturing:
Within 1 month	$	2,750.0		0.44	%	$	1,825.0		0.26	%
After 1 month but within 1 year		450.0		0.57			200.2		0.24
After 2 but within 3 years		258.6		2.71			—		—
After 3 but within 4 years		—		—			261.1		2.71
After 5 years		5.2		1.34			5.4		1.33
Total FHLB advances		3,463.8		0.63			2,291.7		0.54
Customer repurchase agreements maturing:
Within 1 month		469.5		0.19			486.0		0.18
Total customer repurchase agreements		469.5		0.19			486.0		0.18
Federal funds purchased maturing:
Within 1 month		374.0		0.32			913.0		0.15
Total federal funds purchased		374.0		0.32			913.0		0.15
Other borrowings maturing:
Within 1 year		—		—			1.0		1.75
Total other borrowings		—		—			1.0		1.75
Total borrowings	$	4,307.3		0.55	%	$	3,691.7		0.39	%

At December 31, 2015, the Bank’s total borrowing capacity from (i) the FHLB of Boston and the FRB-NY for advances and (ii) repurchase agreements was $10.5 billion based on the level of qualifying collateral available for these borrowings. In addition, the Bank had unsecured borrowing capacity of $1.1 billion at that date. FHLB advances are secured by the Bank’s investment in FHLB stock and by a security agreement that requires the Bank to maintain, as collateral, sufficient qualifying assets not otherwise pledged (principally single-family residential mortgage loans, home equity lines of credit and loans, and commercial real estate loan.

Interest expense on borrowings consists of the following:

Years ended December 31 (in millions)	2015		2014		2013
FHLB advances	$	9.8	$	9.2	$	8.2
Customer repurchase agreements		0.9		1.0		1.1
Federal funds purchased		0.8		0.8		1.2
Other borrowings		—		0.1		—
Total	$	11.5	$	11.1	$	10.5

F-49

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Information concerning People’s United’s borrowings is presented below:

As of and for the years ended December 31 (dollars in millions)	2015			2014			2013
FHLB advances:
Balance at year end	$	3,463.8		$	2,291.7		$	3,719.8
Average outstanding during the year		2,306.6			2,593.7			2,043.9
Maximum outstanding at any month end		3,463.8			3,419.5			3,719.8
Average interest rate during the year		0.42	%		0.36	%		0.40	%
Customer repurchase agreements:
Balance at year end	$	469.5		$	486.0		$	501.2
Carrying amount of collateral securities at year end		478.9			495.7			511.2
Average outstanding during the year		463.6			482.0			522.7
Maximum outstanding at any month end		504.5			519.2			581.2
Average interest rate during the year		0.19	%		0.20	%		0.20	%
Federal funds purchased:
Balance at year end	$	374.0		$	913.0		$	825.0
Average outstanding during the year		411.0			471.8			641.2
Maximum outstanding at any month end		582.0			960.0			934.0
Average interest rate during the year		0.19	%		0.17	%		0.19	%
Other borrowings:
Balance at year end	$	—		$	1.0		$	11.0
Carrying amount of collateral securities at year end		—			1.1			1.1
Average outstanding during the year		0.6			57.1			3.9
Maximum outstanding at any month end		1.0			206.2			11.0
Average interest rate during the year		1.76	%		0.25	%		0.51	%

NOTE 10 – Notes and Debentures

Notes and debentures are summarized as follows:

As of December 31 (in millions)	2015		2014
People’s United Financial, Inc.:
3.65% senior notes due 2022	$	498.8	$	498.6
5.80% fixed rate/floating rate subordinated notes due 2017		123.7		122.5
People’s United Bank:
4.00% subordinated notes due 2024		416.2		412.4
Total notes and debentures	$	1,038.7	$	1,033.5

The 3.65% senior notes represent fixed-rate unsecured and unsubordinated obligations of People’s United with interest payable semi-annually. The Company may redeem the senior notes at its option, in whole or in part, at any time prior to September 6, 2022, at a redemption price equal to the greater of (i) 100% of the principal amount of the senior notes to be redeemed or (ii) a “make-whole” amount, plus in either case accrued and unpaid interest to the redemption date. In addition, the Company may redeem the senior notes at its option, in whole or in part, at any time on or following September 6, 2022, at a redemption price equal to 100% of the principal amount of the senior notes to be redeemed, plus accrued and unpaid interest to the redemption date.

F-50

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

People’s United assumed the 5.80% fixed rate/floating rate subordinated notes in connection with its acquisition of Chittenden Corporation (“Chittenden”). These subordinated notes, which were issued in 2007 and are due in February 2017, represent unsecured general obligations of People’s United with interest payable semi-annually. The notes had a coupon of 5.80% for the first five years and converted to a variable rate in year six that is tied to the three month LIBOR plus 68.5 basis points. At December 31, 2015, the interest rate was 1.05%. In 2011, People’s United entered into an interest rate swap to hedge the LIBOR-based floating rate payments on these subordinated notes, which began in February 2012 (see Note 20). People’s United has the option to redeem the notes, in whole or in part, on any interest payment date at a redemption price of 100% of the principal amount of the redeemed notes, plus any accrued but unpaid interest.

The 4.00% subordinated notes represent fixed-rate unsecured and subordinated obligations of the Bank with interest payable semi-annually. The Bank may redeem the notes, in whole or in part, on or after April 16, 2024 at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The Bank may redeem the notes in whole, but not in part, at its option at a redemption price equal to 100% of the principal amount of the notes together with accrued but unpaid interest to, but excluding, the date fixed for redemption, within 90 days of the occurrence of a “regulatory event” (as defined). Pursuant to capital regulations of the OCC, effective January 1, 2015, the Bank may not redeem the notes prior to maturity without the prior approval of the OCC. The Bank has entered into a pay floating/receive fixed interest rate swap to hedge the change in fair value of the subordinated notes due to changes in interest rates (see Note 20). For regulatory capital purposes, subordinated note issuances qualify, up to certain limits, as Tier 2 capital for both People’s United’s and the Bank’s Total risk-based capital (see Note 13).

NOTE 11 – Income Taxes

The following is a summary of total income tax expense:

Years ended December 31 (in millions)	2015			2014			2013
Income tax expense applicable to pre-tax income	$	130.4		$	128.9		$	115.2
Income tax benefit applicable to items reported in total other comprehensive loss (note 15)		(5.3	)		(6.7	)		(34.6	)
Total	$	125.1		$	122.2		$	80.6

The components of income tax expense applicable to pre-tax income are summarized as follows:

Years ended December 31 (in millions)	2015		2014		2013
Current tax expense:
Federal	$	103.6	$	111.9	$	89.9
State		12.7		10.3		9.8
Total current tax expense		116.3		122.2		99.7
Deferred tax expense (1)		14.1		6.7		15.5
Total income tax expense	$	130.4	$	128.9	$	115.2

(1) Includes the effect of decreases in the valuation allowance for state deferred tax assets of $0.1 million, $1.2 million and $2.3 million in 2015, 2014 and 2013, respectively.

F-51

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following is a reconciliation of expected income tax expense, computed at the U.S. federal statutory rate of 35%, to actual income tax expense:

Years ended December 31 (dollars in millions)	2015			2014			2013
Expected income tax expense	$	136.7		$	133.2		$	121.7
State income tax, net of federal tax effect		9.3			8.2			7.3
Tax-exempt interest		(16.4	)		(13.2	)		(11.7	)
Tax-exempt income from BOLI		(1.6	)		(2.0	)		(1.6	)
Federal income tax credits		(0.4	)		0.8			(3.0	)
Other, net		2.8			1.9			2.5
Actual income tax expense	$	130.4		$	128.9		$	115.2
Effective income tax rate		33.4	%		33.9	%		33.1	%

People’s United holds ownership interests in limited partnerships formed to develop and operate affordable housing units for lower income tenants throughout its franchise area. The underlying partnerships, which are considered variable interest entities, are not consolidated into the Company’s Consolidated Financial Statements. These investments have historically played a role in enabling the Bank to meet its Community Reinvestment Act requirements while, at the same time, providing federal income tax credits.

The balance of the Company’s affordable housing investments reflected in the Consolidated Statement of Condition at December 31, 2015 totaled $83.5 million (included in other assets). Future contingent commitments (capital calls) related to such investments, the timing of which cannot be reasonably estimated, totaled $74.9 million at that date. The cost of the Company’s investments is amortized on a straight-line basis over the period during which the related federal income tax credits are realized (generally ten years). Amortization expense, which is included as a component of income tax expense, totaled $12.6 million, $10.7 million and $8.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.

In 1998, the Bank formed a passive investment company, People’s Mortgage Investment Company, in accordance with Connecticut tax laws, which permit transfers of mortgage loans to such subsidiaries on or after January 1, 1999. The related earnings of the subsidiary, and any dividends it pays to the parent, are not subject to Connecticut income tax. As a result of the exclusion of such earnings and dividends from Connecticut taxable income beginning in 1999, the Bank has established a valuation allowance for the full amount of its Connecticut deferred tax asset attributable to net temporary differences and state net operating loss carryforwards. Connecticut tax net operating loss carryforwards totaled $1.4 billion at December 31, 2015 and expire between 2020 and 2035.

F-52

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The tax effects of temporary differences that give rise to People’s United’s deferred tax assets and liabilities are as follows:

As of December 31 (in millions)	2015			2014
Deferred tax assets:
Leasing activities	$	101.5		$	87.1
Allowance for loan losses and non-accrual interest		82.7			77.4
State tax net operating loss carryforwards, net of federal tax effect		68.0			67.2
Equity-based compensation		22.9			22.0
Pension and other postretirement benefits		12.2			35.8
Unrealized loss on securities transferred to held to maturity		12.0			13.1
Unrealized loss on securities available for sale		10.8			2.3
Basis difference in affordable housing investments		—			3.1
Other deductible temporary differences		35.1			32.6
Total deferred tax assets		345.2			340.6
Less: valuation allowance for state deferred tax assets		(68.0	)		(68.1	)
Total deferred tax assets, net of the valuation allowance		277.2			272.5
Deferred tax liabilities:
Tax over book depreciation		(185.4	)		(160.3	)
Acquisition-related deferred tax liabilities		(39.9	)		(51.0	)
Book over tax income recognized on consumer loans		(14.6	)		(12.4	)
Deferred cancellation-of-indebtedness income		(13.4	)		(17.5	)
Mark-to-market and original issue discounts for tax purposes		(7.3	)		(7.7	)
Temporary differences related to merchant services joint venture		(6.8	)		(7.2	)
Other taxable temporary differences		(7.9	)		(9.4	)
Total deferred tax liabilities		(275.3	)		(265.5	)
Net deferred tax asset	$	1.9		$	7.0

Based on People’s United’s recent historical and anticipated future pre-tax earnings and the reversal of taxable temporary differences, management believes it is more likely than not that People’s United will realize its total deferred tax assets, net of the valuation allowance.

People’s United’s current income tax receivable at December 31, 2015 and 2014 totaled $26.3 million and $21.1 million, respectively.

The following is a reconciliation of the beginning and ending balances of People’s United’s unrecognized income tax benefits related to uncertain tax positions:

Years ended December 31 (in millions)	2015			2014			2013
Balance at beginning of year	$	3.0		$	3.0		$	2.9
Additions for tax positions taken in prior years		0.1			0.1			0.1
Reductions for tax positions taken in prior years		—			—			—
Reductions attributable to audit settlements/lapse of statute of limitations		(0.4	)		(0.1	)		—
Balance at end of year	$	2.7		$	3.0		$	3.0

F-53

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

If recognized, the unrecognized income tax benefits at December 31, 2015 would minimally affect People’s United’s annualized income tax rate. Accrued interest expense related to the unrecognized income tax benefits totaled $0.6 million and $0.7 million at December 31, 2015 and 2014, respectively. People’s United recognizes accrued interest related to unrecognized income tax benefits and penalties, if incurred, as components of income tax expense in the Consolidated Statements of Income. The amount of total unrecognized income tax benefits is not expected to change significantly within the next twelve months. People’s United files a consolidated U.S. Federal income tax return and various state income tax returns and is no longer subject to federal or state income tax examinations through 2011.

NOTE 12 – Stockholders’ Equity and Dividends

People’s United is authorized to issue 50 million shares of preferred stock, par value of $0.01 per share, none of which were outstanding as of December 31, 2015, and 1.95 billion shares of common stock, par value of $0.01 per share, of which 399.2 million shares were issued as of December 31, 2015.

Treasury stock includes (i) common stock repurchased by People’s United, either directly or through agents, in the open market at prices and terms satisfactory to management in connection with stock repurchases authorized by its Board of Directors and (ii) common stock purchased in the open market by a trustee with funds provided by People’s United and originally intended for awards under the People’s United Financial, Inc. 2007 Recognition and Retention Plan (the “RRP”). Following shareholder approval of the People’s United Financial, Inc. 2014 Long-Term Incentive Plan (the “2014 Plan”) in the second quarter of 2014, no new awards may be granted under the RRP (see Note 17).

In November 2012, People’s United’s Board of Directors authorized the repurchase of common stock. Under this repurchase authorization, up to 10% of the Company’s common stock outstanding, or 33.6 million shares, were to be repurchased, either directly or through agents, in the open market at prices and terms satisfactory to management. During 2013, the Company completed the repurchase of shares authorized at a total cost of $458.9 million.

In April 2007, People’s United established an Employee Stock Ownership Plan (the “ESOP”) (see Note 16). At that time, People’s United loaned the ESOP $216.8 million to purchase 10.5 million shares of People’s United common stock in the open market. Shares of People’s United common stock are held by the ESOP and allocated to eligible participants annually based upon a percentage of each participant’s eligible compensation. At December 31, 2015, 7.3 million shares of People’s United common stock, with a contra-equity balance of $151.8 million, have not been allocated or committed to be released.

Dividends declared and paid per common share totaled $0.6675, $0.6575 and $0.6475 for the years ended December 31, 2015, 2014 and 2013, respectively. People’s United’s dividend payout ratio (dividends paid as a percentage of net income) was 77.3%, 78.2% and 88.1% for the years ended December 31, 2015, 2014 and 2013, respectively.

In the ordinary course of business, People’s United is dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and other general corporate purposes. People’s United’s ability to pay cash dividends is governed by federal law, regulations and related guidance. The Bank’s ability to pay cash dividends directly or indirectly to People’s United also is governed by federal law and regulations. These provide that the Bank must receive OCC approval to declare a dividend if the total amount of all dividends (common and preferred), including the proposed dividend, declared by the Bank in any current year exceeds the total of the Bank’s net income for the current year to date, combined with its retained net income for the previous two years, less the sum of any transfers required by the OCC and any transfers required to be made to a fund for the retirement of any preferred stock. The term “retained net income” as defined by federal regulations means the Bank’s net income for a specified period less the total amount of all dividends declared in that period.

F-54

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The Bank may not pay dividends to People’s United if, after paying those dividends, it would fail to meet the required minimum levels under risk-based capital guidelines or if the OCC has notified the Bank that it is in need of more than normal supervision. See Note 13 for a discussion of regulatory capital requirements. Under the Federal Deposit Insurance Act, an insured depository institution such as the Bank is prohibited from making capital distributions, including the payment of dividends, if, after making such distribution, the institution would become “undercapitalized” (as such term is used in the Federal Deposit Insurance Act). Payment of dividends by the Bank also may be restricted at any time at the discretion of the appropriate regulator if it deems the payment to constitute an unsafe and unsound banking practice.

In 2015, 2014 and 2013, the Bank paid a total of $245.0 million, $244.0 million and $232.0 million, respectively, in cash dividends to People’s United (parent company). At December 31, 2015, the Bank’s retained net income, as defined by federal regulations, totaled $24.3 million.

NOTE 13 – Regulatory Capital Requirements

Bank holding companies and banks are subject to various regulations regarding capital requirements administered by U.S. banking agencies. The FRB (in the case of a bank holding company) and the OCC (in the case of a bank) may initiate certain actions if a bank holding company or a bank fails to meet minimum capital requirements. In addition, under its prompt corrective action regulations, the OCC is required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized bank. These actions could have a direct material effect on a bank’s financial statements. People’s United and the Bank are subject to regulatory capital requirements administered by the FRB and the OCC, respectively.

People’s United and the Bank are both subject to new capital rules (the “Basel III capital rules”) issued by U.S. banking agencies that became effective on January 1, 2015. The Basel III capital rules, among other things: (i) introduces as a new capital measure “Common Equity Tier 1” (“CET1”) capital; (ii) specifies that Tier 1 capital consists of CET1 capital and “Additional Tier 1 Capital” instruments meeting specified requirements; (iii) defines CET1 capital narrowly by requiring that most adjustments to regulatory capital measures be made to CET1 capital and not to the other components of capital; and (iv) expands the scope of the adjustments as compared to prior regulations.

When fully phased-in on January 1, 2019, Basel III capital rules will require financial institutions to maintain: (i) as a newly adopted international standard, a minimum ratio of CET1 capital to total risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% CET1 capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum ratio of CET1 capital to total risk-weighted assets of at least 7.0%); (ii) a minimum ratio of Tier 1 capital to total risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation); (iii) a minimum ratio of Total (that is, Tier 1 plus Tier 2) capital to total risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% Total capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum Total capital ratio of 10.5% upon full implementation); and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average total assets, as defined.

The foregoing capital ratios are based in part on specific quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting guidelines. Capital amounts and classifications are also subject to qualitative judgments by federal regulators about capital components, risk weightings and other factors.

F-55

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Management believes that, as of December 31, 2015, People’s United and the Bank met all capital adequacy requirements to which each is subject. Further, the most recent regulatory notification categorized the Bank as a well-capitalized institution under the prompt corrective action regulations. Since that notification, no conditions or events have occurred that have caused management to believe any change in the Bank’s capital classification would be warranted.

The following summary compares People’s United’s and the Bank’s regulatory capital amounts and ratios under the Basel III capital rules. The minimum capital required amounts as of December 31, 2015 are based on the phase-in provisions of the Basel III capital rules. In connection with the adoption of the Basel III capital rules, both the Company and the Bank elected to opt-out of the requirement to include most components of AOCL in CET1 capital. At December 31, 2015, People’s United’s and the Bank’s total risk-weighted assets, as defined, both were $29.6 billion.

	As of December 31, 2015					Minimum Capital Required Basel III Phase-In  (2015)					Classification as Well-Capitalized
(dollars in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 Leverage (1):
People’s United		2,898.1		8.0	%	$	1,440.6		4.0	%	$	1,800.8		5.0	%
Bank		3,012.7		8.4			1,431.9		4.0			1,789.8		5.0
Common Equity Tier 1 Capital (2):
People’s United		2,898.1		9.8			1,620.7		4.5			2,341.0		6.5
Bank		3,012.7		10.2			1,610.9		4.5			2,326.8		6.5
Tier 1 Risk-Based Capital (3):
People’s United		2,898.1		9.8			1,778.8		6.0			2,371.7		8.0
Bank		3,012.7		10.2			1,777.3		6.0			2,369.7		8.0
Total Risk-Based Capital (4):
People’s United		3,470.5		11.7			2,371.7		8.0			2,964.6		10.0
Bank		3,726.3		12.6			2,369.7		8.0			2,962.1		10.0

(1) Tier 1 Leverage ratio represents Tier 1 Capital divided by Average Total Assets (less goodwill, other acquisition-related intangibles and other deductions from Common Equity Tier 1 Capital).

(2) Common Equity Tier 1 Capital ratio represents equity capital, as defined, less: (i) after-tax net unrealized gains (losses) on certain securities classified as available for sale; (ii) after-tax net unrealized gains (losses) on securities transferred to held to maturity; (iii) goodwill and other acquisition-related intangible assets; and (iv) the amount recorded in AOCL relating to pension and other postretirement benefits divided by Total Risk-Weighted Assets.

(3) Tier 1 Risk-Based Capital ratio represents Common Equity Tier 1 Capital plus Additional Tier 1 Capital instruments (together, “Tier 1 Capital”) divided by Total Risk-Weighted Assets.

(4) Total Risk-Based Capital ratio represents Tier 1 Capital plus subordinated notes and debentures, up to certain limits, and the allowance for loan losses, up to 1.25% of Total Risk-Weighted Assets, divided by Total Risk-Weighted Assets.

Management currently estimates that, as of December 31, 2015, the Company’s and the Bank’s risk-based capital ratios could be negatively impacted by as much as 25-35 basis points on a “fully phased-in” basis compared to the ratios at December 31, 2015.

F-56

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following summary compares the Bank’s regulatory capital amounts and ratios to the OCC’s requirements for classification as a well-capitalized institution and for minimum capital adequacy (capital rules in effect through December 31, 2014). At December 31, 2014, the Bank’s adjusted total assets, as defined, were $34.0 billion and its total risk-weighted assets, as defined, were $27.5 billion. At December 31, 2014, the Bank exceeded each of its regulatory capital requirements.

							OCC Requirements
	People’s United Bank						Classification as Well-Capitalized					Minimum Capital Adequacy
(dollars in millions)	Amount			Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2014
Tangible capital	$	2,881.5	(1)		8.5	%		n/a		n/a		$	510.3		1.5	%
Leverage (core) capital		2,881.5	(1)		8.5		$	1,700.9		5.0	%		1,360.8		4.0
Risk-based capital:
Tier 1		2,881.5	(1)		10.5			1,647.3		6.0			1,098.2		4.0
Total		3,582.2	(2)		13.0			2,745.4		10.0			2,196.3		8.0

(1) Represents the Bank’s total equity capital, excluding: (i) after-tax net unrealized gains and losses on certain securities classified as available for sale; (ii) after-tax net unrealized gains and losses on securities transferred to held to maturity; (iii) after-tax net unrealized gains and losses on derivatives accounted for as cash flow hedges; (iv) certain assets not recognized for regulatory capital purposes (principally goodwill and other acquisition-related intangible assets); and (v) the amount recorded in AOCL relating to pension and other postretirement benefits.

(2) Represents Tier 1 capital plus qualifying subordinated notes and debentures, up to certain limits, and the allowance for loan losses up to 1.25% of total risk-weighted assets.

NOTE 14 – Earnings Per Common Share

The following is an analysis of People’s United’s basic and diluted EPS, reflecting the application of the two-class method, as described in Note 1:

Years ended December 31 (in millions, except per share data)	2015			2014			2013
Net income	$	260.1		$	251.7		$	232.4
Dividends and undistributed earnings allocated to participating securities		(1.1	)		(1.2	)		(1.2	)
Income attributable to common shareholders	$	259.0		$	250.5		$	231.2
Average common shares outstanding for basic EPS		300.4			298.2			311.9
Effect of dilutive equity-based awards		—			0.1			0.1
Average common and common-equivalent shares for diluted EPS		300.4			298.3			312.0
Basic EPS	$	0.86		$	0.84		$	0.74
Diluted EPS	$	0.86		$	0.84		$	0.74

All unallocated ESOP common shares and all common shares accounted for as treasury shares have been excluded from the calculation of basic and diluted EPS. Anti-dilutive equity-based awards totaling 19.7 million shares, 17.7 million shares and 14.0 million shares for the years ended December 31, 2015, 2014 and 2013, respectively, have been excluded from the calculation of diluted EPS.

F-57

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 15 – Comprehensive Income

Comprehensive income represents the sum of net income and items of “other comprehensive income or loss,” including (on an after-tax basis): (i) net actuarial gains and losses, prior service credits and costs, and transition assets and obligations related to pension and other postretirement plans; (ii) net unrealized gains and losses on securities available for sale; (iii) net unrealized gains and losses on securities transferred to held to maturity; and (iv) net unrealized gains and losses on derivatives accounted for as cash flow hedges. People’s United’s total comprehensive income for the years ended December 31, 2015, 2014 and 2013 is reported in the Consolidated Statements of Comprehensive Income.

The following is a summary of the changes in the components of AOCL, which are included in People’s United’s stockholders’ equity on an after-tax basis:

(in millions)	Pension and Other Postretirement Plans			Net Unrealized Gains (Losses) on Securities Available for Sale			Net Unrealized Gains (Losses) on Securities Transferred to Held to Maturity			Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges			Total Accumulated Other Comprehensive Loss
Balance at December 31, 2012	$	(148.2	)	$	52.8		$	—		$	(1.5	)	$	(96.9	)
Other comprehensive income (loss) before reclassifications		58.3			(99.3	)		(23.3	)		0.5			(63.8	)
Amounts reclassified from AOCL (1)		4.9			—			—			0.7			5.6
Current period other comprehensive income (loss)		63.2			(99.3	)		(23.3	)		1.2			(58.2	)
Balance at December 31, 2013		(85.0	)		(46.5	)		(23.3	)		(0.3	)		(155.1	)
Other comprehensive income (loss) before reclassifications		(62.6	)		44.6			—			(0.6	)		(18.6	)
Amounts reclassified from AOCL (1)		4.7			(1.8	)		1.8			0.8			5.5
Current period other comprehensive income (loss)		(57.9	)		42.8			1.8			0.2			(13.1	)
Balance at December 31, 2014		(142.9	)		(3.7	)		(21.5	)		(0.1	)		(168.2	)
Other comprehensive income (loss) before reclassifications		(2.2	)		(14.0	)		—			(0.7	)		(16.9	)
Amounts reclassified from AOCL (1)		5.1			—			2.0			0.8			7.9
Current period other comprehensive income (loss)		2.9			(14.0	)		2.0			0.1			(9.0	)
Balance at December 31, 2015	$	(140.0	)	$	(17.7	)	$	(19.5	)	$	—		$	(177.2	)

(1) See the following table for details about these reclassifications.

F-58

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following is a summary of the amounts reclassified from AOCL:

Years ended December 31 (in millions)	Amounts Reclassified from  AOCL									Affected Line Item in the Statement Where Net Income is Presented
	2015			2014			2013
Details about components of AOCL:
Amortization of pension and other postretirement plans items:
Net actuarial loss	$	(9.1	)	$	(8.4	)	$	(8.8	)	(1)
Prior service credit		1.0			1.0			1.1		(1)
		(8.1	)		(7.4	)		(7.7	)	Income before income tax expense
		3.0			2.7			2.8		Income tax expense
		(5.1	)		(4.7	)		(4.9	)	Net income
Reclassification adjustment for net realized gains on securities available for sale		—			3.0			—		Income before income tax expense (2)
		—			(1.2	)		—		Income tax expense
		—			1.8			—		Net income
Amortization of unrealized losses on securities transferred to held to maturity		(3.1	)		(3.0	)		—		Income before income tax expense (3)
		1.1			1.2			—		Income tax expense
		(2.0	)		(1.8	)		—		Net income
Amortization of unrealized gains and losses on cash flow hedges:
Interest rate swaps		(1.3	)		(1.4	)		(1.3	)	(4)
Interest rate locks		0.1			0.1			0.1		(4)
		(1.2	)		(1.3	)		(1.2	)	Income before income tax expense
		0.4			0.5			0.5		Income tax expense
		(0.8	)		(0.8	)		(0.7	)	Net income
Total reclassifications for the period	$	(7.9	)	$	(5.5	)	$	(5.6	)

(1) Included in the computation of net periodic benefit income (expense) reflected in compensation and benefits expense (see Note 16 for additional details).

(2) Included in non-interest income.

(3) Included in interest and dividend income – securities.

(4) Included in interest expense – notes and debentures.

F-59

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Deferred income taxes applicable to the components of AOCL are as follows:

As of December 31 (in millions)	2015		2014		2013
Net actuarial loss and other amounts related to pension and         other postretirement plans	$	81.5	$	83.2	$	50.0
Net unrealized loss on securities available for sale		10.3		2.2		27.3
Net unrealized loss on securities transferred to held to maturity		11.4		12.5		13.7
Net unrealized loss on derivatives accounted for as cash flow hedges		—		—		0.2
Total deferred income taxes	$	103.2	$	97.9	$	91.2

The following is a summary of the components of People’s United’s total other comprehensive loss:

	Pre-Tax						After-Tax
Year ended December 31, 2015 (in millions)	Amount			Tax Effect			Amount
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial loss arising during the year	$	(3.5	)	$	1.3		$	(2.2	)
Reclassification adjustment for net actuarial loss included in net income		9.1			(3.4	)		5.7
Net actuarial gain		5.6			(2.1	)		3.5
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.0	)		0.4			(0.6	)
Net actuarial gain and prior service credit		4.6			(1.7	)		2.9
Net unrealized gains and losses on securities available for sale:
Net unrealized holding losses arising during the year		(22.1	)		8.1			(14.0	)
Net unrealized losses		(22.1	)		8.1			(14.0	)
Net unrealized gains and losses on securities transferred to held to maturity:
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income		3.1			(1.1	)		2.0
Net unrealized gains		3.1			(1.1	)		2.0
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized losses arising during the year		(1.1	)		0.4			(0.7	)
Reclassification adjustment for net realized losses included in net income		1.2			(0.4	)		0.8
Net unrealized gains		0.1			—			0.1
Total other comprehensive loss	$	(14.3)		$	5.3		$	(9.0	)

F-60

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

	Pre-Tax						After-Tax
Year ended December 31, 2014 (in millions)	Amount			Tax Effect			Amount
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial loss arising during the year	$	(98.5	)	$	35.9		$	(62.6	)
Reclassification adjustment for net actuarial loss included in net income		8.4			(3.1	)		5.3
Net actuarial loss		(90.1	)		32.8			(57.3	)
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.0	)		0.4			(0.6	)
Net actuarial loss and prior service credit		(91.1	)		33.2			(57.9	)
Net unrealized gains and losses on securities available for sale:
Net unrealized holding gains arising during the year		70.9			(26.3	)		44.6
Reclassification adjustment for net realized gains included in net income		(3.0	)		1.2			(1.8	)
Net unrealized gains		67.9			(25.1	)		42.8
Net unrealized gains and losses on securities transferred to held to maturity:
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income		3.0			(1.2	)		1.8
Net unrealized gains		3.0			(1.2	)		1.8
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized losses arising during the year		(0.9	)		0.3			(0.6	)
Reclassification adjustment for net realized losses included in net income		1.3			(0.5	)		0.8
Net unrealized gains		0.4			(0.2	)		0.2
Total other comprehensive loss	$	(19.8	)	$	6.7		$	(13.1	)

	Pre-Tax						After-Tax
Year ended December 31, 2013 (in millions)	Amount			Tax Effect			Amount
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial gain arising during the year	$	92.0		$	(33.7	)	$	58.3
Reclassification adjustment for net actuarial loss included in net income		8.8			(3.2	)		5.6
Net actuarial gain		100.8			(36.9	)		63.9
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.1	)		0.4			(0.7	)
Net actuarial gain and prior service credit		99.7			(36.5	)		63.2
Net unrealized gains and losses on securities available for sale:
Net unrealized holding losses arising during the year		(194.4	)		58.1			(136.3	)
Unrealized holding losses on securities transferred during the year		37.0			—			37.0
Net unrealized losses		(157.4	)		58.1			(99.3	)
Net unrealized gains and losses on securities transferred to held to maturity:
Unrealized holding losses on securities transferred during the year		(37.0	)		13.7			(23.3	)
Net unrealized losses		(37.0	)		13.7			(23.3	)
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized gains arising during the year		0.7			(0.2	)		0.5
Reclassification adjustment for net realized losses included in net income		1.2			(0.5	)		0.7
Net unrealized gains		1.9			(0.7	)		1.2
Total other comprehensive loss	$	(92.8	)	$	34.6		$	(58.2	)

F-61

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 16 – Employee Benefit Plans

People’s United Employee Pension and Other Postretirement Plans

People’s United maintains a qualified noncontributory defined benefit pension plan (the “People’s Qualified Plan”) that covers substantially all full-time and part-time employees who (i) meet certain age and length of service requirements and (ii) were employed by the Bank prior to August 14, 2006. Benefits are based upon the employee’s years of credited service and either the average compensation for the last five years or the average compensation for the five consecutive years of the last ten years that produce the highest average.

New employees of the Bank starting on or after August 14, 2006 are not eligible to participate in the People’s Qualified Plan. Instead, the Bank makes contributions on behalf of these employees to a qualified defined contribution plan in an annual amount equal to 3% of the employee’s eligible compensation. Employee participation in this plan is restricted to employees who (i) are at least 18 years of age and (ii) worked at least 1,000 hours in a year. Both full-time and part-time employees are eligible to participate as long as they meet these requirements.

In July 2011, the Bank amended the People’s Qualified Plan to “freeze”, effective December 31, 2011, the accrual of pension benefits for People’s Qualified Plan participants. As such, participants will not earn any additional benefits after that date. Instead, effective January 1, 2012, the Bank began making contributions on behalf of these participants to a qualified defined contribution plan in an annual amount equal to 3% of the employee’s eligible compensation.

In addition to the People’s Qualified Plan, People’s United continues to maintain a qualified defined benefit pension plan that covers former Chittenden employees who meet certain eligibility requirements (the “Chittenden Qualified Plan”). Effective December 31, 2005, accrued benefits were frozen based on participants’ then-current service and pay levels. Interest continues to be credited on undistributed balances at a crediting rate specified by the Chittenden Qualified Plan. During April 2010, participants who were in payment status as of April 1, 2010, or whose accrued benefit as of that date was scheduled to be paid in the form of an annuity commencing May 1, 2010 based upon elections made by April 15, 2010, were transferred into the People’s Qualified Plan.

People’s United also maintains (i) unfunded, nonqualified supplemental plans to provide retirement benefits to certain senior officers (the “Supplemental Plans”) and (ii) an unfunded plan that provides retirees with optional medical, dental and life insurance benefits (the “Other Postretirement Plan”). People’s United accrues the cost of these postretirement benefits over the employees’ years of service to the date of their eligibility for such benefit.

An employer is required to recognize an asset or a liability for the funded status of pension and other postretirement plans. The funded status is measured as the difference between the fair value of plan assets and the applicable benefit obligation, which is the projected benefit obligation for a pension plan and the accumulated postretirement benefit obligation for an other postretirement plan. Plan assets and benefit obligations are required to be measured as of the date of the employer’s fiscal year-end.

F-62

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes changes in the benefit obligations and plan assets of the People’s Qualified Plan, the Chittenden Qualified Plan and the Supplemental Plans (together the “Pension Plans”) and the Other Postretirement Plan. The table also shows the funded status (or the difference between benefit obligations and plan assets) recognized in the Consolidated Statements of Condition. All plans have a December 31 measurement date.

	Pension Plans						Other Postretirement Plan
(in millions)	2015			2014			2015			2014
Benefit obligations: (1)
Beginning of year	$	515.3		$	430.5		$	14.6		$	10.3
Service cost		—			—			0.3			0.1
Interest cost		21.1			21.4			0.6			0.5
Actuarial loss (gain)		(36.7	)		88.0			(0.6	)		4.8
Benefits paid		(16.6	)		(15.9	)		(0.9	)		(1.1	)
Settlements		(2.7	)		(8.7	)		—			—
End of year		480.4			515.3			14.0			14.6
Fair value of plan assets:
Beginning of year		439.9			431.4			—			—
Actual return on assets		(6.4	)		26.2			—			—
Employer contributions (2)		52.3			6.9			0.9			1.1
Benefits paid		(16.6	)		(15.9	)		(0.9	)		(1.1	)
Settlements		(2.7	)		(8.7	)		—			—
End of year		466.5			439.9			—			—
Funded status at end of year	$	(13.9	)	$	(75.4	)	$	(14.0	)	$	(14.6	)
Amounts recognized in the Consolidated Statements of Condition:
Other assets	$	26.6		$	—		$	—		$	—
Other liabilities		(40.5	)		(75.4	)		(14.0	)		(14.6	)
Funded status at end of year	$	(13.9	)	$	(75.4	)	$	(14.0	)	$	(14.6	)

(1) Represents projected benefit obligation for the Pension Plans and accumulated benefit obligation for the Other Postretirement Plan.

(2) During the quarter ended March 31, 2015, People’s United made voluntary employer contributions of $40.0 million and $10.0 million to the People’s Qualified Plan and the Chittenden Qualified Plan, respectively.

Plan assets for the People’s Qualified Plan and the Chittenden Qualified Plan (together the “Qualified Plans”) of $418.9 million and $47.6 million, respectively, as of December 31, 2015 exceeded the related projected benefit obligation ($397.0 million and $42.9 million, respectively) at that date.

Although the Supplemental Plans hold no assets, People’s United has funded a trust to provide benefit payments to the extent such benefits are not paid directly by People’s United. Trust assets of $29.2 million as of December 31, 2015 (which are included in other assets in the Consolidated Statements of Condition) were exceeded by the related projected benefit obligation ($40.5 million) at that date.

F-63

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes the accumulated and projected benefit obligations for the Pension Plans at the respective measurement dates:

	Pension Plans
As of December 31 (in millions)	2015		2014
Accumulated benefit obligations:
Qualified Plans	$	439.9	$	474.8
Supplemental Plans		40.5		40.5
Total	$	480.4	$	515.3
Projected benefit obligations:
Qualified Plans	$	439.9	$	474.8
Supplemental Plans		40.5		40.5
Total	$	480.4	$	515.3

Components of net periodic benefit (income) expense and other amounts recognized in other comprehensive loss are as follows:

	Pension Plans									Other Postretirement Plan
Years ended December 31 (in millions)	2015			2014			2013			2015			2014			2013
Net periodic benefit (income) expense:
Service cost	$	—		$	—		$	—		$	0.3		$	0.1		$	0.2
Interest cost		21.1			21.4			19.8			0.6			0.5			0.5
Expected return on plan assets		(34.4	)		(32.0	)		(30.2	)		—			—			—
Recognized net actuarial loss		7.7			5.1			7.3			0.3			—			—
Recognized prior service credit		(0.8	)		(0.8	)		(0.8	)		(0.2	)		(0.2	)		(0.2	)
Settlements (1)		1.2			3.3			1.5			—			—			—
Net periodic benefit (income) expense		(5.2	)		(3.0	)		(2.4	)		1.0			0.4			0.5
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Net actuarial (gain) loss		(4.7	)		85.3			(99.5	)		(0.9	)		4.8			(1.3	)
Prior service credit		0.8			0.8			0.9			0.2			0.2			0.2
Total pre-tax changes recognized in other comprehensive loss		(3.9	)		86.1			(98.6	)		(0.7	)		5.0			(1.1	)
Total recognized in net periodic benefit (income) expense and other comprehensive loss	$	(9.2	)	$	83.1		$	(101.0	)	$	0.3		$	5.4		$	(0.6	)

(1) Settlement charges are a result of lump-sum benefit payments in excess of the sum of a plan’s annual interest and service costs. When an employer settles the full amount of its obligation for vested benefits with respect to some of a plan’s participants, the employer is required to recognize in income a pro-rata portion of the aggregate gain or loss recorded in AOCL.

The pre-tax amounts in AOCL that have not been recognized as components of net periodic benefit (income) expense are as follows:

	Pension Plans						Other Postretirement Plan
As of December 31 (in millions)	2015			2014			2015		2014
Net actuarial loss	$	219.3		$	224.0		$	4.2	$	5.1
Prior service credit		(2.0	)		(2.8	)		—		(0.2	)
Total pre-tax amounts included in AOCL	$	217.3		$	221.2		$	4.2	$	4.9

F-64

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The Company uses a corridor approach in the valuation of its Qualified Plans, which results in the deferral of actuarial gains and losses resulting from differences between actual results and actuarial assumptions. Amortization of actuarial gains and losses occurs when the accumulated unrecognized gain or loss balance, as of the beginning of the year, exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets. The excess unrecognized gain or loss balance is amortized over the average remaining life expectancy of plan participants for the People’s Qualified Plan (approximately 29 years) and over the average working lifetime of active participants for the Chittenden Qualified Plan (approximately 8 years), both as of December 31, 2015.

In 2016, approximately $6.1 million in net actuarial losses and $0.8 million in prior service credit are expected to be recognized as components of net periodic benefit (income) expense for the Pension Plans and approximately $0.2 million in net actuarial losses is expected to be recognized as a component of net periodic benefit (income) expense for the Other Postretirement Plan.

The following assumptions were used in determining the benefit obligations and net periodic benefit (income) expense as of and for the periods indicated:

	Qualified Plans									Other Postretirement Plan
	2015			2014			2013			2015			2014			2013
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate:
People’s Qualified Plan		4.64	%		4.20	%		5.10	%		4.60	%		4.20	%		5.10	%
Chittenden Qualified Plan		4.45			4.00			4.90			n/a			n/a			n/a
Rate of compensation increase		n/a			n/a			n/a			n/a			n/a			n/a
Weighted-average assumptions used to determine net periodic benefit (income) expense for the years ended December 31:
Discount rate:
People’s Qualified Plan		4.20	%		5.10	%		4.25	%		4.20	%		5.10	%		4.25	%
Chittenden Qualified Plan		4.00			4.90			4.00			n/a			n/a			n/a
Expected return on plan assets		7.50			8.00			8.00			n/a			n/a			n/a
Rate of compensation increase		n/a			n/a			n/a			n/a			n/a			n/a
Assumed health care cost trend rates at December 31: (1)
Health care cost trend rate assumed for next year		n/a			n/a			n/a			6.80	%		7.05	%		7.25	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		n/a			n/a			n/a			4.50			4.50			4.50
Year that the rate reaches the ultimate trend rate		n/a			n/a			n/a			2027			2027			2027

n/a – not applicable

(1) Changes in the net periodic benefit (income) expense and the related benefit obligation arising as a result of a one-percentage-point increase or decrease in this assumed trend rate would not be significant.

The discount rates used to determine the benefit obligation of the Supplemental Plans at December 31, 2015 ranged from 3.95% to 4.60% while the discount rate used to determine net periodic benefit (income) expense for 2015 was 4.20%.

F-65

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

In developing an expected long-term rate of return on asset assumption for the Qualified Plans for purposes of determining 2015 net periodic benefit income, People’s United considered the historical returns and the future expectations for returns within each asset class, as well as the target asset allocation of the pension portfolio. This resulted in an expected long-term rate of return assumption of 7.50%, which was intended to reflect expected asset returns over the life of the related pension benefits expected to be paid. The discount rates reflect the then current rates available on long-term high-quality fixed-income debt instruments, and are reset annually on the measurement date. To determine the discount rates, People’s United reviews, along with its independent actuary, spot interest rate yield curves based upon yields from a broad population of high-quality bonds adjusted to match the timing and amounts of expected benefit payments.

In 2016, $12.8 million in net periodic benefit income is expected to be recognized related to the Qualified Plans. This amount was determined using the following assumptions: (i) an expected long-term rate of return of 7.25%; (ii) discount rates of 4.03% and 3.70% (based on the full yield curve approach discussed below) for the People’s Qualified Plan and the Chittenden Qualified Plan, respectively; and (iii) updated mortality tables issued by the Society of Actuaries in October 2015. The mortality rate is a key assumption used in valuing retirement benefit obligations as it reflects the probability of future benefit payments that are contingent upon the longevity of plan participants and their beneficiaries. Adoption of updated mortality tables resulted in a decrease in the related benefit obligation of $7.7 million for the Qualified Plans.

Beginning in 2016, People’s United will change the method used to estimate the interest cost component of net periodic benefit income for the Pension Plans and the Other Postretirement Plan. Instead of using spot interest rate yield curves as discussed above, People’s United has elected to use a full yield curve approach to estimate this component of benefit income by applying the specific spot rates along the yield curve, used in the determination of the benefit obligations, to the relevant projected cash flows. This change is expected to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of interest cost. This change will not affect the measurement of People’s United’s total benefit obligations as the change in interest cost is completely offset by the actuarial gain or loss recognized. People’s United considers this a change in accounting estimate and, accordingly, will account for it prospectively in 2016.

The expected impact in 2016 of the change in accounting estimate for the Qualified Plans is as follows:

(dollars in millions)	People’s Qualified Plan			Chittenden Qualified Plan
Discount rates used to measure net periodic benefit income in 2016:
Interest cost		4.03	%		3.70	%
Discount rates that would have been used to measure net periodic benefit income under prior actuarial methodology:
Interest cost		4.64			4.45
Increase in expected net periodic benefit income in 2016 using specific spot rates:
Interest cost	$	2.5		$	0.3

The expected impact in 2016 of the change in accounting estimate for the Supplemental Plans and the Other Postretirement Plan is $0.3 million.

F-66

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

People’s United’s funding policy is to contribute the amounts required by applicable regulations, although additional amounts may be contributed from time to time. In 2016, no employer contributions are expected to be made for either the People’s Qualified Plan or the Chittenden Qualified Plan. Employer contributions for the Supplemental Plans and the Other Postretirement Plan in 2016 are expected to total $5.3 million, representing net benefit payments expected to be paid under these plans.

Expected future net benefit payments for the Pension Plans as of December 31, 2015 are: $22.2 million in 2016; $23.5 million in 2017; $23.6 million in 2018; $23.0 million in 2019; $23.2 million in 2020; and an aggregate of $138.2 million in 2021 through 2025. Expected future net benefit payments for the Other Postretirement Plan as of December 31, 2015 are: $0.9 million in each of the years 2016 through 2020; and an aggregate of $3.8 million in 2021 through 2025.

The investment strategy of the Qualified Plans is to develop a diversified portfolio, representing a variety of asset classes of varying duration, in order to effectively fund expected near-term and long-term benefit payments. All investment decisions are governed by an established policy that contains the following asset allocation guidelines:

	Asset Class
	Policy Target %		Policy Range %
Cash equivalents		5		0-20
Equity securities		65		50-75
Fixed income securities		30		20-50

Equity securities are required to be diversified among industries and economic sectors and may include convertible securities. Limitations have been established on the overall allocation to any individual security representing more than 3% of the market value of total plan assets. A limit of 50% of equity holdings may be invested in international equities. Short sales, margin purchases and similar speculative transactions are prohibited.

Fixed income securities are oriented toward risk-averse, investment-grade securities rated “A” or higher. A limit of up to 30% of the fixed income holdings may be purchased and held indirectly in issues rated below “Baa” by Moody’s or “BBB” by Standard & Poor’s, if the higher investment risk is compensated for by the prospect of a positive incremental investment return. With the exception of U.S. government securities, in which the Qualified Plans may invest the entire fixed income allocation, fixed income securities require diversification among individual securities and sectors. Limitations have been established on the overall investment in securities of a single issuer to no more than 2.5% of the market value of total plan assets. There is no limit on the maximum maturity of securities held. Short sales, margin purchases and similar speculative transactions are prohibited.

F-67

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes the percentages of fair value for the major categories of assets in the Qualified Plans as of the respective measurement dates:

	Plan Assets
	2015						2014
As of December 31	People’s Qualified Plan			Chittenden Qualified Plan			People’s Qualified Plan			Chittenden Qualified Plan
Equity securities		69	%		69	%		72	%		72	%
Cash and fixed income securities		31			31			28			28
Total		100	%		100	%		100	%		100	%

The following tables present the Qualified Plans’ assets measured at fair value:

	Fair Value Measurements Using
As of December 31, 2015 (in millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	26.3	$	—	$	—	$	26.3
Equity securities:
Corporate		215.3		—		—		215.3
Mutual funds		—		105.8		—		105.8
Fixed income securities:
Corporate		—		81.6		—		81.6
Mutual funds		—		21.8		—		21.8
Municipals		—		10.5		—		10.5
Other		—		5.2		—		5.2
Total	$	241.6	$	224.9	$	—	$	466.5

	Fair Value Measurements Using
As of December 31, 2014 (in millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	8.9	$	—	$	—	$	8.9
Equity securities:
Corporate		244.4		—		—		244.4
Mutual funds		—		71.0		—		71.0
Fixed income securities:
Corporate		—		73.8		—		73.8
Mutual funds		—		25.8		—		25.8
Municipals		—		11.6		—		11.6
Other		—		4.4		—		4.4
Total	$	253.3	$	186.6	$	—	$	439.9

F-68

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Employee Stock Ownership Plan

In April 2007, People’s United established an ESOP. At that time, People’s United loaned the ESOP $216.8 million to purchase 10,453,575 shares of People’s United common stock in the open market. In order for the ESOP to repay the loan, People’s United expects to make annual cash contributions of approximately $18.8 million until 2036. Such cash contributions may be reduced by the cash dividends paid on unallocated ESOP shares, which totaled $5.1 million in 2015, $5.3 million in 2014 and $5.4 million in 2013. At December 31, 2015, the loan balance totaled $188.6 million.

Employee participation in this plan is restricted to those employees who (i) are at least 18 years of age and (ii) worked at least 1,000 hours within 12 months of their hire date or any plan year (January 1 to December 31) after their date of hire. Employees meeting the aforementioned eligibility criteria during the plan year must continue to be employed as of the last day of the plan year in order to receive an allocation of shares for that plan year.

Shares of People’s United common stock are held by the ESOP and allocated to eligible participants annually based upon a percentage of each participant’s eligible compensation. Since the ESOP was established, a total of 3,136,076 shares of People’s United common stock have been allocated or committed to be released to participants’ accounts. At December 31, 2015, 7,317,499 shares of People’s United common stock, with a fair value of $118.2 million at that date, have not been allocated or committed to be released.

Compensation expense related to the ESOP is recognized at an amount equal to the number of common shares committed to be released by the ESOP for allocation to participants’ accounts multiplied by the average fair value of People’s United’s common stock during the reporting period. The difference between the fair value of the shares of People’s United’s common stock committed to be released and the cost of those common shares is recorded as a credit to additional paid-in capital (if fair value exceeds cost) or, to the extent that no such credits remain in additional paid-in capital, as a charge to retained earnings (if fair value is less than cost). Expense recognized for the ESOP totaled $5.4 million, $5.1 million and $4.9 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Employee Savings Plans

People’s United sponsors an employee savings plan that qualifies as a 401(k) plan under the Internal Revenue Code. Employees may contribute up to 50% of their pre-tax compensation up to certain limits, and People’s United makes a matching contribution equal to 100% of a participant’s contributions up to 4% of pre-tax compensation. Participants vest immediately in their own contributions and after one year in People’s United’s contributions. A supplemental savings plan has also been established for certain senior officers and the Company has funded a trust to provide benefit payments to the extent such benefits are not paid directly by People’s United. Trust assets of $7.3 million as of December 31, 2015 (which are included in other assets in the Consolidated Statements of Condition) were exceeded by the related benefit obligation of $23.4 million at that date. Expense recognized for these employee savings plans totaled $22.1 million, $20.1 million and $20.0 million for the years ended December 31, 2015, 2014 and 2013, respectively.

F-69

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 17 – Stock-Based Compensation Plans

Long-Term Incentive Plan

People’s United’s 2014 Plan and the predecessor 2008 Long-Term Incentive Plan and the 1998 Long-Term Incentive Plan (together the “Incentive Plans”) provide for awards to officers and employees in the form of: (i) incentive stock options that may afford tax benefits to recipients; (ii) non-statutory stock options that do not afford tax benefits to recipients but may provide tax benefits to People’s United; and (iii) stock appreciation rights, restricted stock and performance units. A total of 34,000,000 shares of People’s United common stock are reserved for issuance under the 2014 Plan. The number of shares of common stock reserved under the 2014 Plan is depleted by one share for each option or stock appreciation right and by 5.32 shares for every share that is subject to an award other than an option or stock appreciation right. At December 31, 2015, a total of 24,875,317 reserved shares remain available for future awards.

Non-statutory stock options have been granted under the Incentive Plans at exercise prices equal to the fair value of People’s United common stock at the grant dates. Option expiration dates are fixed at the grant date, with a maximum term of ten years. Prior to 2013, options granted under the Incentive Plans generally vested 50% after two years, 75% after three years and 100% after four years. Beginning in 2013, options granted under the Incentive Plans vest 33% after one year, 66% after two years and 100% after three years. All options become fully exercisable in the event of a change of control, as defined in the Incentive Plans.

People’s United has also granted restricted stock awards under the Incentive Plans. Employees become fully vested in these shares generally after a three- or four-year period, with requisite service conditions and no performance-based conditions to such vesting. Unvested restricted stock awards become fully vested in the event of a change in control, as defined in the Incentive Plans. During the vesting period, dividends are paid on the restricted stock and the recipients are entitled to vote these restricted shares. The fair value of all restricted stock awards is measured at the grant date based on quoted market prices.

Following shareholder approval of the 2014 Plan in the second quarter of 2014, no new awards may be granted under the 2008 Long-Term Incentive Plan, the 2007 Stock Option Plan (the “SOP”) or the RRP (together the “Prior Plans”). All awards granted under the Prior Plans and the 1998 Long-Term Incentive Plan that were unvested (in the case of stock options and restricted stock awards) or unexercised (in the case of stock options) as of the date of shareholder approval of the 2014 Plan continue to be governed by the terms of the plan under which such awards were granted and the applicable grant agreements.

Recognition and Retention Plan and Stock Option Plan

The RRP and SOP (together the “2007 Plans”) provided for awards to directors, officers and employees in the form of: (i) incentive stock options that may afford tax benefits to recipients; (ii) non-statutory stock options that do not afford tax benefits to recipients but may provide tax benefits to People’s United; and (iii) restricted stock. Shares of People’s United common stock were purchased in the open market in October 2007 by a trustee with funds provided by People’s United for the maximum number of shares available to be awarded in the form of restricted stock.

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People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Non-statutory stock options were granted under the SOP at exercise prices equal to the fair value of People’s United’s common stock at the grant date based on quoted market prices. The fair value of all restricted stock awarded under the RRP was measured at the grant date based on quoted market prices. Prior to 2014, most restricted stock awards and stock options granted under the 2007 Plans were scheduled to vest in 20% annual increments over a five-year period with requisite service conditions and no performance-based conditions to such vesting. Awards made under the 2007 Plans in 2014 are scheduled to vest in one-third annual increments over a three-year period with requisite service conditions and no performance-based conditions to such vesting. All restricted stock awards and stock options become fully vested and exercisable, respectively, in the event of a change of control, as defined in the 2007 Plans. During the vesting period, dividends are paid on the restricted stock and the recipients are entitled to vote these restricted shares.

Stock Options Granted

People’s United granted a total of 5,221,992 stock options in 2015, 562,355 stock options in 2014 and 3,164,607 stock options in 2013 under the Incentive Plans and 4,391,269 stock options under the SOP in 2014. The estimated weighted-average grant-date fair value of all stock options granted in 2015, 2014 and 2013 was $1.46 per option, $1.51 per option and $2.23 per option, respectively, using the Black-Scholes option-pricing model with assumptions as follows: dividend yield of 4.4% in 2015, 4.7% in 2014 and 5.0% in 2013; expected volatility rate of 20% in 2015, 22% in 2014 and 33% in 2013; risk-free interest rate of 1.6% in both 2015 and 2014 and 0.9% in 2013; and expected option life of approximately 5 years in 2015, 2014 and 2013. No stock options were granted under the SOP in 2013.

In arriving at the grant date fair value of stock options using the Black-Scholes option-pricing model, expected volatilities were based on the historical volatilities of People’s United traded common stock. The expected term of stock options represents the period of time that options granted are expected to be outstanding. People’s United used historical data to estimate voluntary suboptimal (early) exercises by continuing employees, and estimates of post-vest option exercise or forfeiture by terminated employees. Suboptimal exercise data and employee termination estimates are incorporated into Monte Carlo simulations of People’s United common stock prices to calculate the expected term. The risk-free interest rate approximated the U.S. Treasury rate curve matched to the expected option term at the time of the grant.

Expense relating to stock options granted is recognized on a straight-line basis, generally over the applicable service period, and totaled $6.8 million, $5.4 million and $4.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Unamortized cost for unvested stock options, which reflects an estimated forfeiture rate of 5.0% per year over the vesting period, totaled $7.4 million at December 31, 2015, and is expected to be recognized over the remaining weighted-average vesting period of 1.6 years. The total intrinsic value of stock options exercised was $5.1 million, $1.1 million and $1.3 million in the years ended December 31, 2015, 2014 and 2013, respectively.

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People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following is a summary of stock option activity under the Incentive Plans and the SOP:

	Shares Subject To Option			Weighted Average Exercise Price		Weighted-Average Remaining Contractual  Term (in years)		Aggregate Intrinsic Value (1) (in millions)
Options outstanding at December 31, 2012		12,156,806		$	15.95
Granted		3,164,607			13.01
Forfeited		(840,292	)		15.54
Exercised		(264,047	)		9.73
Options outstanding at December 31, 2013		14,217,074			15.43
Granted		4,953,624			13.94
Forfeited		(896,003	)		15.13
Exercised		(476,290	)		12.48
Options outstanding at December 31, 2014		17,798,405			15.11
Granted		5,221,992			14.85
Forfeited		(1,290,396	)		16.57
Exercised		(2,052,577	)		13.35
Options outstanding at December 31, 2015		19,677,424		$	15.13		6.1	$	28.6
Options exercisable at December 31, 2015		10,547,093		$	15.83		4.0	$	11.9

(1) Reflects only those stock options with intrinsic value at December 31, 2015.

Additional information concerning options outstanding and options exercisable at December 31, 2015 is summarized as follows:

	Options Outstanding						Options Exercisable
			Weighted Average
Exercise Price Range	Number		Remaining Life (in years)		Exercise Price		Number		Weighted Average Exercise Price
$11.52 - $13.05		3,036,141		6.7	$	12.84		2,010,763	$	12.83
13.42 - 15.80		11,260,621		7.9		14.50		3,155,668		14.49
16.07 - 17.76		2,251,654		2.4		16.97		2,251,654		16.97
18.10 - 21.63		3,129,008		1.8		18.29		3,129,008		18.29

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People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Restricted Stock Awarded

The following is a summary of restricted stock award activity under the Incentive Plans and the RRP:

	Shares			Weighted-Average Grant Date Fair Value
Unvested restricted shares outstanding at December 31, 2012		1,581,421		$	13.48
Granted		617,796			13.15
Forfeited		(44,046	)		12.85
Vested		(621,956	)		14.08
Unvested restricted shares outstanding at December 31, 2013		1,533,215			13.12
Granted		660,617			14.01
Forfeited		(95,700	)		13.53
Vested		(730,600	)		13.22
Unvested restricted shares outstanding at December 31, 2014		1,367,532			13.47
Granted		568,273			14.88
Forfeited		(80,303	)		14.23
Vested		(623,185	)		13.33
Unvested restricted shares outstanding at December 31, 2015		1,232,317		$	14.14

Expense relating to unvested restricted stock awards is recognized on a straight-line basis, generally over the applicable service period, and totaled $9.4 million, $8.7 million and $8.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. Unamortized cost for unvested restricted stock awards, which reflects an estimated forfeiture rate of 5.1% per year over the vesting period, totaled $9.4 million at December 31, 2015, and is expected to be recognized over the remaining weighted-average vesting period of 1.5 years. The total fair value of restricted stock awards vested during the years ended December 31, 2015, 2014 and 2013 was $9.4 million, $10.3 million and $9.4 million, respectively.

During 2015, 2014 and 2013, employees of People’s United tendered a total of 230,459 shares, 229,635 shares and 205,943 shares of common stock, respectively, in satisfaction of their related minimum tax withholding obligations upon the vesting of restricted stock awards granted in prior periods and/or in payment of the exercise price and satisfaction of their related minimum tax withholding obligations upon the exercise of stock options granted in prior periods. There is no limit on the number of shares that may be tendered by employees of People’s United in the future for these purposes. Shares acquired in payment of the stock option exercise price or in satisfaction of minimum tax withholding obligations are not eligible for reissuance in connection with any subsequent grants made pursuant to equity compensation plans maintained by People’s United. Rather, all shares acquired in this manner are retired by People’s United, resuming the status of authorized but unissued shares of People’s United’s common stock. The total cost of shares repurchased and retired applicable to restricted stock awards during the years ended December 31, 2015, 2014 and 2013 was $3.2 million, $3.0 million and $2.2 million, respectively.

Directors’ Equity Compensation Plan

The People’s United Financial, Inc. Directors’ Equity Compensation Plan (the “Directors’ Plan”) provides for an annual award of shares of People’s United common stock with a fair value of approximately $95,000 to each non-employee director immediately following each annual meeting of shareholders. Shares of People’s United common stock issued pursuant to the Directors’ Plan are subject to a one-year vesting period, with no post-vesting transfer restrictions. A total of 1,192,500 shares of People’s United common stock are reserved for issuance under the Directors’ Plan.

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People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

In 2015, 2014 and 2013, directors were granted a total of 62,690 shares, 57,330 shares and 58,896 shares, respectively, of People’s United common stock, with grant date fair values of $15.23 per share, $14.63 per share and $12.76 per share, respectively, at those dates. Expense totaling $0.9 million, $0.8 million and $0.8 million was recognized for the years ended December 31, 2015, 2014 and 2013, respectively, for the Directors’ Plan. At December 31, 2015, a total of 251,071 shares remain available for issuance.

NOTE 18 – Fair Value Measurements

Described below are the valuation methodologies used by People’s United and the resulting fair values for those financial instruments measured at fair value on both a recurring and a non-recurring basis, as well as for those financial assets and financial liabilities not measured at fair value but for which fair value is disclosed.

Recurring Fair Value Measurements

Trading Account Securities and Securities Available For Sale

When available, People’s United uses quoted market prices for identical securities received from an independent, nationally-recognized, third-party pricing service (as discussed further below) to determine the fair value of investment securities such as U.S. Treasury and agency securities that are included in Level 1. When quoted market prices for identical securities are unavailable, People’s United uses prices provided by the independent pricing service based on recent trading activity and other observable information including, but not limited to, market interest rate curves, referenced credit spreads and estimated prepayment rates where applicable. These investments include certain U.S. and government agency debt securities, corporate and municipal debt securities, and GSE residential mortgage-backed securities and CMOs, all of which are included in Level 2.

Substantially all of the Company’s available-for-sale securities represent GSE residential mortgage-backed securities and CMOs. The fair values of these securities are based on prices obtained from the independent pricing service. The pricing service uses various techniques to determine pricing for the Company’s mortgage-backed securities, including option pricing and discounted cash flow analysis. The inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, reference data, monthly payment information and collateral performance. At both December 31, 2015 and 2014, the entire available-for-sale residential mortgage-backed securities portfolio was comprised of 10- and 15-year GSE securities. An active market exists for securities that are similar to the Company’s GSE residential mortgage-backed securities and CMOs, making observable inputs readily available.

Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year securities. As a further point of validation, the Company generates its own month-end fair value estimate for all mortgage-backed securities, agency-issued CMOs (also backed by 15-year mortgage-backed securities), and state and municipal securities. While the Company has not adjusted the prices obtained from the independent pricing service, any notable differences between those prices and the Company’s estimates are subject to further analysis. This additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for the particular security. Based on management’s review of the prices provided by the pricing service, the fair values incorporate observable market inputs used by market participants at the measurement date and, as such, are classified as Level 2 securities.

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People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Other Assets

As discussed in Note 16, certain unfunded, nonqualified supplemental plans have been established to provide retirement benefits to certain senior officers. People’s United has funded two trusts to provide benefit payments to the extent such benefits are not paid directly by People’s United, the assets of which are included in other assets in the Consolidated Statements of Condition. When available, People’s United determines the fair value of the trust assets using quoted market prices for identical securities received from a third-party nationally recognized pricing service.

Derivatives

People’s United values its derivatives using internal models that are based on market or observable inputs including interest rate curves and forward/spot prices for selected currencies. Derivative assets and liabilities included in Level 2 represent interest rate swaps, foreign exchange contracts, risk participation agreements, forward commitments to sell residential mortgage loans and interest rate-lock commitments on residential mortgage loans.

The following tables summarize People’s United’s financial instruments that are measured at fair value on a recurring basis:

	Fair Value Measurements Using
As of December 31, 2015 (in millions)	Level 1		Level 2		Level 3		Total
Financial assets:
Trading account securities:
U.S. Treasury	$	6.7	$	—	$	—	$	6.7
Securities available for sale:
U.S. Treasury and agency		362.8		—		—		362.8
GSE residential mortgage-backed securities and CMOs		—		4,164.7		—		4,164.7
Equity securities		—		0.2		—		0.2
Other assets:
Exchange-traded funds		29.4		—		—		29.4
Fixed income securities		—		5.1		—		5.1
Mutual funds		2.0		—		—		2.0
Interest rate swaps		—		157.0		—		157.0
Foreign exchange contracts		—		0.6		—		0.6
Forward commitments to sell residential mortgage loans		—		0.6		—		0.6
Total	$	400.9	$	4,328.2	$	—	$	4,729.1
Financial liabilities:
Interest rate swaps	$	—	$	108.5	$	—	$	108.5
Foreign exchange contracts		—		0.2		—		0.2
Interest rate-lock commitments on residential mortgage loans		—		0.8		—		0.8
Total	$	—	$	109.5	$	—	$	109.5

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People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

	Fair Value Measurements Using
As of December 31, 2014 (in millions)	Level 1		Level 2		Level 3		Total
Financial assets:
Trading account securities:
U.S. Treasury	$	8.3	$	—	$	—	$	8.3
Securities available for sale:
U.S. Treasury and agency		56.8		—		—		56.8
GSE residential mortgage-backed securities and CMOs		—		3,936.7		—		3,936.7
Equity securities		—		0.2		—		0.2
Other assets:
Exchange-traded funds		30.3		—		—		30.3
Fixed income securities		—		6.0		—		6.0
Mutual funds		0.8		—		—		0.8
Interest rate swaps		—		131.1		—		131.1
Foreign exchange contracts		—		0.8		—		0.8
Forward commitments to sell residential mortgage loans		—		0.5		—		0.5
Total	$	96.2	$	4,075.3	$	—	$	4,171.5
Financial liabilities:
Interest rate swaps	$	—	$	95.8	$	—	$	95.8
Foreign exchange contracts		—		0.5		—		0.5
Interest rate-lock commitments on residential mortgage loans		—		0.7		—		0.7
Total	$	—	$	97.0	$	—	$	97.0

As of December 31, 2015 and 2014, the fair value of risk participation agreements totaled less than $0.1 million (see Note 20).

There were no transfers into or out of the Level 1 or Level 2 categories during the years ended December 31, 2015 and 2014.

Non-Recurring Fair Value Measurements

Loans Held for Sale

Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. When available, People’s United uses observable secondary market data, including pricing on recent closed market transactions for loans with similar characteristics. Accordingly, such loans are classified as Level 2 measurements. When observable data is unavailable, valuation methodologies using current market interest rate data adjusted for inherent credit risk are used, and such loans are included in Level 3.

Impaired Loans

Loan impairment is deemed to exist when full repayment of principal and interest according to the contractual terms of the loan is no longer probable. Impaired loans are reported based on one of three measures: the present value of expected future cash flows discounted at the loan’s original effective interest rate; the loan’s observable market price; or the fair value of the collateral (less estimated cost to sell) if the loan is collateral dependent. Accordingly, certain impaired loans may be subject to measurement at fair value on a non-recurring basis. People’s United has estimated the fair values of these assets using Level 3 inputs, such as discounted cash flows based on inputs that are largely unobservable and, instead, reflect management’s own estimates of the assumptions a market participant would use in pricing such loans and/or the fair value of collateral based on independent third-party appraisals for collateral-dependent loans. Such appraisals are based on the market and/or income approach to value and are subject to a discount (to reflect estimated cost to sell) that generally approximates 10%.

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People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

REO and Repossessed Assets

REO and repossessed assets are recorded at the lower of cost or fair value, less estimated selling costs, and are therefore measured at fair value on a non-recurring basis. People’s United has estimated the fair values of these assets using Level 3 inputs, such as independent third-party appraisals and price opinions. Such appraisals are based on the market and/or income approach to value and are subject to a discount (to reflect estimated cost to sell) that generally approximates 10%. Assets that are acquired through loan default are recorded as held for sale initially at the lower of the recorded investment in the loan or fair value (less estimated selling costs) upon the date of foreclosure/repossession. Subsequent to foreclosure/repossession, valuations are updated periodically and the carrying amounts of these assets may be reduced further.

The following tables summarize People’s United’s assets that are measured at fair value on a non-recurring basis:

	Fair Value Measurements Using
As of December 31, 2015 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	34.5	$	—	$	34.5
Impaired loans (2)		—		—		49.1		49.1
REO and repossessed assets (3)		—		—		22.1		22.1
Total	$	—	$	34.5	$	71.2	$	105.7
	Fair Value Measurements Using
As of December 31, 2014 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	34.2	$	—	$	34.2
Impaired loans (2)		—		—		66.5		66.5
REO and repossessed assets (3)		—		—		27.1		27.1
Total	$	—	$	34.2	$	93.6	$	127.8

(1) Consists of residential mortgage loans; no fair value adjustments were recorded for the years ended December 31, 2015 and 2014.

(2) Represents the recorded investment in originated impaired loans with a related allowance for loan losses measured in accordance with applicable accounting guidance. The total consists of $33.0 million of Commercial loans and $16.1 million of Retail loans at December 31, 2015. The provision for loan losses on impaired loans totaled $6.7 million and $10.9 million for the years ended December 31, 2015 and 2014, respectively.

(3) Represents: (i) $7.1 million of residential REO; (ii) $5.5 million of commercial REO; and (iii) $9.5 million of repossessed assets at December 31, 2015. Charge-offs to the allowance for loan losses related to loans that were transferred to REO or repossessed assets totaled $1.8 million and $1.2 million for the years ended December 31, 2015 and 2014, respectively. Write downs and net loss on sale of foreclosed/repossessed assets charged to non-interest expense totaled $2.8 million and $5.1 million for the same periods.

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People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Financial Assets and Financial Liabilities Not Measured At Fair Value

As discussed in Note 1, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date (an “exit price” approach to fair value).

Acceptable valuation techniques (when quoted market prices are not available) that might be used to estimate the fair value of financial instruments include discounted cash flow analyses and comparison to similar instruments. Such estimates are highly subjective and require judgments regarding significant matters such as the amount and timing of future cash flows and the selection of discount rates that appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are made as of a specific point in time, they are susceptible to material near-term changes. Fair values estimated in this manner do not reflect any premium or discount that could result from the sale of a large volume of a particular financial instrument, nor do they reflect possible tax ramifications or estimated transaction costs.

The following is a description of the principal valuation methods used by People’s United for those financial instruments that are not measured at fair value either on a recurring or non-recurring basis:

Cash, Short-Term Investments and Securities Purchased Under Agreements to Resell

Cash and due from banks are classified as Level 1. Short-term investments and securities purchased under agreements to resell have fair values that approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities, and present relatively low credit risk and IRR. As such, these fair values are classified as Level 2.

Securities Held to Maturity

When available, the fair values of investment securities held to maturity are measured based on quoted market prices for identical securities in active markets and, accordingly, are classified as Level 1 assets. When quoted market prices for identical securities are not available, fair values are estimated based on quoted prices for similar assets in active markets or through the use of pricing models containing observable inputs (i.e. market interest rates, financial information and credit ratings of the issuer, etc.). These fair values are included in Level 2. In cases where there may be limited information available and/or little or no market activity for the underlying security, fair value is estimated using pricing models containing unobservable inputs and classified as Level 3.

FHLB and FRB-NY Stock

Both FHLB and FRB-NY stock are non-marketable equity securities classified as Level 2 and reported at cost, which equals par value (the amount at which shares have been redeemed in the past). No significant observable market data is available for either of these securities.

Loans

For valuation purposes, the loan portfolio is segregated into its significant categories, which are commercial real estate, commercial and industrial, equipment financing, residential mortgage, home equity and other consumer. These categories are further segregated, where appropriate, into components based on significant financial characteristics such as type of interest rate (fixed or adjustable) and payment status (performing or non-performing). Fair values are estimated for each component using a valuation method selected by management.

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People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The fair values of performing loans were estimated by discounting the anticipated cash flows from the respective portfolios, assuming future prepayments and using market interest rates for new loans with comparable credit risk. As a result, the valuation method for performing loans, which is consistent with certain guidance provided in accounting standards, does not fully incorporate the “exit price” approach to fair value. The fair values of non-performing loans were based on recent collateral appraisals or management’s analysis of estimated cash flows discounted at rates commensurate with the credit risk involved. The estimated fair values of residential mortgage loans are classified as Level 2 as a result of the observable market inputs (i.e. market interest rates, prepayment assumptions, etc.) available for this loan type. The fair values of all other loan types are classified as Level 3 as the inputs contained within the respective discounted cash flow models are largely unobservable and, instead, reflect management’s own estimates of the assumptions a market participant would use in pricing such loans. The fair value of home equity lines of credit was based on the outstanding loan balances, and therefore does not reflect the value associated with earnings from future loans to existing customers.

Deposit Liabilities

The fair values of time deposits represent contractual cash flows discounted at current rates determined by reference to observable inputs including a LIBOR/swap curve over the remaining period to maturity. As such, these fair values are classified as Level 2. The fair values of other deposit liabilities (those with no stated maturity, such as checking and savings accounts) are equal to the carrying amounts payable on demand. Deposit fair values do not include the intangible value of core deposit relationships that comprise a significant portion of People’s United’s deposit base. Management believes that People’s United’s core deposit relationships provide a relatively stable, low-cost funding source that has a substantial intangible value separate from the deposit balances.

Borrowings and Notes and Debentures

The fair values of federal funds purchased and repurchase agreements are equal to the carrying amounts due to the short maturities (generally overnight). The fair values of FHLB advances and other borrowings represent contractual repayments discounted using interest rates currently available on borrowings with similar characteristics and remaining maturities and are classified as Level 2. The fair values of notes and debentures were based on dealer quotes and are classified as Level 2.

Lending-Related Financial Instruments

The estimated fair values of People’s United’s lending-related financial instruments approximate the respective carrying amounts. Such instruments include commitments to extend credit, unadvanced lines of credit and letters of credit, for which fair values were estimated based on an analysis of the interest rates and fees currently charged to enter into similar transactions, considering the remaining terms of the instruments and the creditworthiness of the potential borrowers.

F-79

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following tables summarize the carrying amounts, estimated fair values and placement in the fair value hierarchy of People’s United’s financial instruments that are not measured at fair value either on a recurring or non-recurring basis:

			Estimated Fair Value
	Carrying Amount		Measurements Using
As of December 31, 2015 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	334.8	$	334.8	$	—	$	—	$	334.8
Short-term investments		380.5		—		380.5		—		380.5
Securities held to maturity		1,609.6		—		1,661.0		1.5		1,662.5
FHLB and FRB stock		305.4		—		305.4		—		305.4
Total loans, net (1)		28,150.8		—		5,315.3		22,893.7		28,209.0
Financial liabilities:
Time deposits		4,818.1		—		4,836.5		—		4,836.5
Other deposits		23,599.3		—		23,599.3		—		23,599.3
FHLB advances		3,463.8		—		3,468.7		—		3,468.7
Customer repurchase agreements		469.5		—		469.5		—		469.5
Federal funds purchased		374.0		—		374.0		—		374.0
Notes and debentures		1,038.7		—		1,012.9		—		1,012.9

(1) Excludes impaired loans totaling $49.1 million measured at fair value on a non-recurring basis.

			Estimated Fair Value
	Carrying Amount		Measurements Using
As of December 31, 2014 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	345.1	$	345.1	$	—	$	—	$	345.1
Short-term investments		668.6		—		668.6		—		668.6
Securities purchased under agreements to resell		100.0		—		100.0		—		100.0
Securities held to maturity		834.3		—		880.1		1.5		881.6
FHLB stock		175.7		—		175.7		—		175.7
Total loans, net (1)		26,327.2		—		4,798.5		21,508.8		26,307.3
Financial liabilities:
Time deposits		5,230.7		—		5,262.6		—		5,262.6
Other deposits		20,907.5		—		20,907.5		—		20,907.5
FHLB advances		2,291.7		—		2,298.5		—		2,298.5
Federal funds purchased		913.0		—		913.0		—		913.0
Customer repurchase agreements		486.0		—		486.0		—		486.0
Repurchase agreements (2)		1.0		—		1.0		—		1.0
Notes and debentures		1,033.5		—		1,040.8		—		1,040.8

(1) Excludes impaired loans totaling $66.5 million measured at fair value on a non-recurring basis.

(2) Included in other borrowings in the Consolidated Statements of Condition.

F-80

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 19 – Legal Proceedings and Lease Commitments

People’s United has various outstanding commitments and contingent liabilities that are not required to be and, therefore, have not been reflected in the consolidated financial statements.

Legal Proceedings

In the normal course of business, People’s United is subject to various legal proceedings. Management has discussed with legal counsel the nature of these legal proceedings and, based on the advice of counsel and the information currently available, believes that the eventual outcome of these legal proceedings will not have a material adverse effect on its financial condition, results of operations or liquidity.

Lease Commitments

At December 31, 2015, People’s United was obligated under various noncancelable operating leases for office space, which expire on various dates through 2054. Certain leases contain renewal options and provide for increased rentals based principally on the consumer price index and fair market rental value provisions. Future minimum rental commitments under operating leases in excess of one year at December 31, 2015 were: $56.5 million in 2016; $55.2 million in 2017; $50.2 million in 2018; $46.5 million in 2019; $42.8 million in 2020; and an aggregate of $140.0 million in 2021 through 2054. Rent expense under operating leases included in occupancy and equipment in the Consolidated Statements of Income totaled $58.9 million, $59.1 million and $58.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.

NOTE 20 – Financial Instruments

In the normal course of business, People’s United is a party to both on-balance-sheet and off-balance-sheet financial instruments involving, to varying degrees, elements of credit risk and IRR in addition to the amounts recognized in the Consolidated Statements of Condition. The contractual amounts of off-balance-sheet instruments reflect the extent of People’s United’s involvement in particular classes of financial instruments.

F-81

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

A summary of the contractual or notional amounts of People’s United’s lending-related and derivative financial instruments follows:

As of December 31 (in millions)	2015		2014
Lending-Related Financial Instruments: (1)
Loan origination commitments and unadvanced lines of credit:
Commercial	$	3,578.0	$	3,337.2
Consumer		2,558.4		2,455.9
Commercial real estate		831.0		880.1
Residential mortgage		93.3		111.8
Letters of credit:
Stand-by		121.5		148.3
Commercial		3.4		3.2
Derivative Financial Instruments: (2)
Interest rate swaps:
For market risk management		500.0		500.0
For commercial customers:
Customer		4,644.8		3,380.2
Institutional counterparties		4,644.8		3,380.2
Risk participation agreements		244.4		150.1
Foreign exchange contracts		56.7		49.6
Forward commitments to sell residential mortgage loans		44.7		35.3
Interest rate-lock commitments on residential mortgage loans		65.4		57.5

(1) The contractual amounts of these financial instruments represent People’s United’s maximum potential exposure to credit loss, assuming (i) the instruments are fully funded at a later date; (ii) the borrower does not meet contractual repayment obligations; and (iii) any collateral or other security proves to be worthless.

(2) The contractual or notional amounts of these financial instruments are substantially greater than People’s United’s maximum potential exposure to credit loss.

Lending-Related Financial Instruments

The contractual amounts of People’s United’s lending-related financial instruments do not necessarily represent future cash requirements since certain of these instruments may expire without being funded and others may not be fully drawn upon. These instruments are subject to People’s United’s credit approval process, including an evaluation of the customer’s creditworthiness and related collateral requirements. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee by the customer. The geographic distribution of People’s United’s lending-related financial instruments is similar to the distribution of its loan portfolio, as described in Note 4.

People’s United issues both stand-by and commercial letters of credit. Stand-by letters of credit are conditional commitments issued by People’s United to guarantee the performance of a customer to a third party. The letter of credit is generally extended for an average term of one year and is secured in a manner similar to existing extensions of credit. For each letter of credit issued, if the customer fails to perform under the terms of the agreement, People’s United would have to fulfill the terms of the letter of credit. The credit risk involved in issuing stand-by letters of credit is essentially the same as that involved in extending loan facilities to customers.

F-82

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

A commercial letter of credit is normally a short-term instrument issued by a financial institution on behalf of its customer. The letter of credit authorizes a beneficiary to draw drafts on the financial institution or one of its correspondent banks, provided the terms and conditions of the letter of credit have been met. In issuing a commercial letter of credit, the financial institution has substituted its credit standing for that of its customer. After drafts are paid by the financial institution, the customer is charged or an obligation is created under an existing reimbursement agreement. An advance under a reimbursement agreement is recorded as a loan by the financial institution and is subject to terms and conditions similar to other commercial obligations.

The fair value of People’s United’s obligations relating to its unfunded loan commitments and letters of credit included in other liabilities in the Consolidated Statements of Condition was $2.5 million at both December 31, 2015 and 2014.

Derivative Financial Instruments and Hedging Activities

People’s United uses derivative financial instruments as components of its market risk management (principally to manage IRR). Certain other derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes.

By using derivatives, People’s United is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s counterparty credit risk is equal to the amount reported as a derivative asset in the Consolidated Statements of Condition. In accordance with the Company’s balance sheet offsetting policy (see Note 1), amounts reported as derivative assets represent derivative contracts in a gain position, without consideration for derivative contracts in a loss position with the same counterparty (to the extent subject to master netting arrangements) and posted collateral. People’s United seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, execution of master netting arrangements and obtaining collateral, where appropriate. Counterparties to People’s United’s derivatives include major financial institutions and exchanges that undergo comprehensive and periodic internal credit analysis as well as maintain investment grade credit ratings from the major credit rating agencies. As such, management believes the risk of incurring credit losses on derivative contracts with those counterparties is remote and losses, if any, would be immaterial.

Certain of People’s United’s derivative contracts contain provisions establishing collateral requirements (subject to minimum collateral posting thresholds) based on the Company’s external credit rating. If the Company’s senior unsecured debt rating were to fall below the level generally recognized as investment grade, the counterparties to such derivative contracts could require additional collateral on those derivative transactions in a net liability position (after considering the effect of master netting arrangements and posted collateral). The aggregate fair value of derivative instruments with such credit-related contingent features that were in a net liability position at December 31, 2015 was $8.8 million, for which People’s United had posted collateral of $8.3 million in the normal course of business. If the Company’s senior unsecured debt rating had fallen below investment grade as of that date, $0.5 million in additional collateral would have been required.

F-83

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following sections further discuss each class of derivative financial instrument used by People’s United, including management’s principal objectives and risk management strategies.

Interest Rate Swaps

People’s United may, from time to time, enter into interest rate swaps that are used to manage IRR associated with certain interest-earning assets and interest-bearing liabilities.

People’s United has entered into a pay fixed/receive floating interest rate swap to hedge the LIBOR-based floating rate payments on the Company’s $125 million subordinated notes (such payments began in February 2012). These notes had a fixed interest rate of 5.80% until February 2012, at which time the interest rate converted to the three-month LIBOR plus 68.5 basis points. People’s United has agreed with the swap counterparty to exchange, at specified intervals, the difference between fixed-rate (1.99%) and floating-rate interest amounts calculated based on a notional amount of $125 million. The floating-rate interest amounts received under the swap are calculated using the same floating-rate paid on these notes. The swap effectively converts the variable-rate subordinated notes to a fixed-rate liability and consequently reduces People’s United’s exposure to increases in interest rates. This swap is accounted for as a cash flow hedge.

The Bank has entered into a pay floating/receive fixed interest rate swap to hedge the change in fair value of the Bank’s $400 million subordinated notes (see Note 10) due to changes in interest rates. The Bank has agreed with the swap counterparty to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated based on a notional amount of $375 million. The fixed-rate interest payments received on the swap will essentially offset the fixed-rate interest payments made on these notes, notwithstanding the notional difference between these notes and the swap. The floating-rate interest amounts paid under the swap are calculated based on three-month LIBOR plus 126.5 basis points. The swap effectively converts the fixed-rate subordinated notes to a floating-rate liability. This swap is accounted for as a fair value hedge.

Customer Derivatives

People’s United enters into interest rate swaps with certain of its commercial customers. In order to minimize its risk, these customer derivatives (pay floating/receive fixed swaps) have been offset with essentially matching interest rate swaps with People’s United’s institutional counterparties (pay fixed/receive floating swaps). Hedge accounting has not been applied for these derivatives. Accordingly, changes in the fair value of all such interest rate swaps are recognized in current earnings.

Risk Participation Agreements

People’s United enters into risk participation agreements under which it may either assume or sell credit risk associated with a borrower’s performance under certain interest rate derivative contracts. In those instances in which People’s United has assumed credit risk, it is not a party to the derivative contract and has entered into the risk participation agreement because it is also a party to the related loan agreement with the borrower. In those instances in which People’s United has sold credit risk, it is a party to the derivative contract and has entered into the risk participation agreement because it sold a portion of the related loan. People’s United manages its credit risk under risk participation agreements by monitoring the creditworthiness of the borrower, based on its normal credit review process. The notional amounts of the risk participation agreements reflect People’s United’s pro-rata share of the derivative contracts, consistent with its share of the related loans.

F-84

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Foreign Exchange Contracts

Foreign exchange contracts are commitments to buy or sell foreign currency on a future date at a contractual price. People’s United uses these instruments on a limited basis to (i) eliminate its exposure to fluctuations in currency exchange rates on certain of its commercial loans that are denominated in foreign currencies and (ii) provide foreign exchange contracts on behalf of commercial customers within credit exposure limits. Gains and losses on foreign exchange contracts substantially offset the translation gains and losses on the related loans.

Interest Rate Locks

In connection with its planned issuance of senior notes in the fourth quarter of 2012, People’s United entered into U.S. Treasury forward interest rate locks (“T-Locks”) to hedge the risk that the 10-year U.S. Treasury yield component of the underlying coupon of the fixed rate senior notes would rise prior to establishing the fixed interest rate on the senior notes. Upon pricing the senior notes, the T-Locks were terminated and the unrealized gain of $0.9 million was included (on a net-of-tax basis) as a component of AOCL. The gain is being recognized as a reduction of interest expense over the ten-year period during which the hedged item ($500 million senior note issuance) affects earnings. The portion of the unrecognized gain at December 31, 2015 that is expected to be recognized over the next 12 months totals approximately $0.1 million.

Forward Commitments to Sell Residential Mortgage Loans and Related Interest Rate-Lock Commitments

People’s United enters into forward commitments to sell adjustable-rate and fixed-rate residential mortgage loans (all to be sold servicing released) in order to reduce the market risk associated with originating loans for sale in the secondary market. In order to fulfill a forward commitment, People’s United delivers originated loans at prices or yields specified by the contract. The risks associated with such contracts arise from the possible inability of counterparties to meet the contract terms or People’s United’s inability to originate the necessary loans. Gains and losses realized on the forward contracts are reported in the Consolidated Statements of Income as a component of the net gains on sales of residential mortgage loans. In the normal course of business, People’s United will commit to an interest rate on a mortgage loan application at the time of application, or anytime thereafter. The risks associated with these interest rate-lock commitments arise if market interest rates change prior to the closing of these loans. Both forward sales commitments and interest rate-lock commitments made to borrowers on held-for-sale loans are accounted for as derivatives, with changes in fair value recognized in current earnings.

F-85

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The table below provides a summary of the notional amounts and fair values (presented on a gross basis) of derivatives outstanding:

						Fair Values (1)
	Type of Hedge	Notional Amounts				Assets				Liabilities
As of December 31 (in millions)		2015		2014		2015		2014		2015		2014
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	4,644.8	$	3,380.2	$	130.9	$	104.2	$	2.6	$	8.3
Institutional counterparties	N/A		4,644.8		3,380.2		7.2		11.8		105.3		86.5
Risk participation agreements (2)	N/A		244.4		150.1		—		—		—		—
Foreign exchange contracts	N/A		56.7		49.6		0.6		0.8		0.2		0.5
Forward commitments to sell residential mortgage loans	N/A		44.7		35.3		0.6		0.5		—		—
Interest rate-lock commitments on residential mortgage loans	N/A		65.4		57.5		—		—		0.8		0.7
Total							139.3		117.3		108.9		96.0
Derivatives Designated as Hedging Instruments:
Interest rate swaps:
Subordinated notes	Cash flow		125.0		125.0		—		—		0.6		1.0
Subordinated notes	Fair value		375.0		375.0		18.9		15.1		—		—
Total							18.9		15.1		0.6		1.0
Total fair value of derivatives						$	158.2	$	132.4	$	109.5	$	97.0

(1) Assets are recorded in other assets and liabilities are recorded in other liabilities.

(2) Fair value totaled less than $0.1 million at both dates.

F-86

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes the impact of People’s United’s derivatives on pre-tax income and AOCL:

		Amount of Pre-Tax Gain (Loss)									Amount of Pre-Tax Gain (Loss)
	Type of Hedge	Recognized in Earnings (1)									Recognized in AOCL
Years ended December 31 (in millions)		2015			2014			2013			2015			2014			2013
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	104.8		$	165.4		$	(54.2	)	$	—		$	—		$	—
Institutional counterparties	N/A		(90.3	)		(156.9	)		64.7			—			—			—
Foreign exchange contracts	N/A		0.2			0.4			0.1			—			—			—
Risk participation agreements	N/A		(0.2	)		0.1			0.2			—			—			—
Forward commitments to sell residential mortgage loans	N/A		0.1			0.4			(2.9	)		—			—			—
Interest rate-lock commitments on residential mortgage loans	N/A		(0.1	)		(0.5	)		3.5			—			—			—
Total			14.5			8.9			11.4			—			—			—
Derivatives Designated as Hedging Instruments:
Interest rate swaps	Cash flow		(1.3	)		(1.4	)		(1.3	)		(1.1	)		(0.9	)		0.7
Interest rate locks	Cash flow		0.1			0.1			0.1			—			—			—
Interest rate swaps	Fair value		9.3			5.2			—			—			—			—
Total			8.1			3.9			(1.2	)		(1.1	)		(0.9	)		0.7
Total		$	22.6		$	12.8		$	10.2		$	(1.1	)	$	(0.9	)	$	0.7

(1) Amounts recognized in earnings are recorded in interest income, interest expense or other non-interest income for derivatives designated as hedging instruments and in other non-interest income for derivatives not designated as hedging instruments.

F-87

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 21 – Balance Sheet Offsetting

The following tables provide a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition. The collateral amounts in these tables are limited to the outstanding balances of the related asset or liability (after netting is applied) and, therefore, instances of overcollateralization are not presented. The net amounts of the derivative assets and liabilities can be reconciled to the fair value of the Company’s derivative financial instruments in Note 20. The Company’s derivative contracts with commercial customers and customer repurchase agreements are not subject to master netting arrangements and, therefore, have been excluded from the tables below.

	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset
As of December 31, 2015 (in millions)							Financial Instruments			Collateral			Net Amount
Financial assets:
Interest rate swaps:
Counterparty A	$	0.6	$	—	$	0.6	$	(0.6	)	$	—		$	—
Counterparty B		0.7		—		0.7		(0.7	)		—			—
Counterparty C		0.6		—		0.6		(0.6	)		—			—
Counterparty D		0.7		—		0.7		(0.7	)		—			—
Counterparty E		22.6		—		22.6		(22.6	)		—			—
Other counterparties		0.8		—		0.8		(0.7	)		—			0.1
Foreign exchange contracts		0.6		—		0.6		—			—			0.6
Total	$	26.6	$	—	$	26.6	$	(25.9	)	$	—		$	0.7
Financial liabilities:
Interest rate swaps:
Counterparty A	$	8.4	$	—	$	8.4	$	(0.6	)	$	(7.8	)	$	—
Counterparty B		10.4		—		10.4		(0.7	)		(9.7	)		—
Counterparty C		5.1		—		5.1		(0.6	)		(4.5	)		—
Counterparty D		8.9		—		8.9		(0.7	)		(7.3	)		0.9
Counterparty E		69.5		—		69.5		(22.6	)		(46.9	)		—
Other counterparties		3.6		—		3.6		(0.7	)		(2.9	)		—
Foreign exchange contracts		0.2		—		0.2		—			—			0.2
Total	$	106.1	$	—	$	106.1	$	(25.9	)	$	(79.1	)	$	1.1

F-88

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset
As of December 31, 2014 (in millions)							Financial Instruments			Collateral			Net Amount
Financial assets:
Interest rate swaps:
Counterparty A	$	2.7	$	—	$	2.7	$	(2.7	)	$	—		$	—
Counterparty B		1.5		—		1.5		(1.5	)		—			—
Counterparty C		2.5		—		2.5		(2.5	)		—			—
Counterparty D		3.2		—		3.2		(0.4	)		(2.8	)		—
Counterparty E		15.7		—		15.7		(15.7	)		—			—
Other counterparties		1.3		—		1.3		(1.3	)		—			—
Securities purchased under agreements to resell		100.0		—		100.0		—			(100.0	)		—
Foreign exchange contracts		0.8		—		0.8		—			—			0.8
Total	$	127.7	$	—	$	127.7	$	(24.1	)	$	(102.8	)	$	0.8
Financial liabilities:
Interest rate swaps:
Counterparty A	$	11.8	$	—	$	11.8	$	(2.7	)	$	(9.1	)	$	—
Counterparty B		11.8		—		11.8		(1.5	)		(10.3	)		—
Counterparty C		4.5		—		4.5		(2.5	)		(1.9	)		0.1
Counterparty D		0.4		—		0.4		(0.4	)		—			—
Counterparty E		47.8		—		47.8		(15.7	)		(32.1	)		—
Other counterparties		11.2		—		11.2		(1.3	)		(8.9	)		1.0
Repurchase agreements (1)		1.0		—		1.0		—			(1.0	)		—
Foreign exchange contracts		0.5		—		0.5		—			—			0.5
Total	$	89.0	$	—	$	89.0	$	(24.1	)	$	(63.3	)	$	1.6

(1) Included in other borrowings in the Consolidated Statements of Condition.

NOTE 22 – Segment Information

Public companies are required to report (i) certain financial and descriptive information about “reportable operating segments,” as defined, and (ii) certain enterprise-wide financial information about products and services, geographic areas and major customers. Operating segment information is reported using a “management approach” that is based on the way management organizes the segments for purposes of making operating decisions and assessing performance.

People’s United’s operations are divided into three primary operating segments that represent its core businesses: Commercial Banking; Retail Banking; and Wealth Management. In addition, the Treasury area manages People’s United’s securities portfolio, short-term investments, brokered deposits, wholesale borrowings and the funding center.

F-89

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The Company’s operating segments have been aggregated into two reportable segments: Commercial Banking and Retail Banking. These reportable segments have been identified and organized based on the nature of the underlying products and services applicable to each segment, the type of customers to whom those products and services are offered and the distribution channel through which those products and services are made available. With respect to Wealth Management, this presentation results in the allocation of the Company’s insurance business and certain trust activities to the Commercial Banking segment, and the allocation of the Company’s brokerage business and certain other trust activities to the Retail Banking segment.

Commercial Banking consists principally of commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. This segment also includes the equipment financing operations of PCLC and PUEFC, as well as cash management, correspondent banking and municipal banking. In addition, Commercial Banking consists of institutional trust services, corporate trust, insurance services provided through PUIA and private banking.

Retail Banking includes, as its principal business lines, consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. In addition, Retail Banking consists of brokerage, financial advisory services, investment management services and life insurance provided by PSI and non-institutional trust services.

People’s United’s segment disclosure is based on an internal profitability reporting system, which generates information by operating segment based on a series of management estimates and allocations regarding funds transfer pricing (“FTP”), the provision for loan losses, non-interest expense and income taxes. These estimates and allocations, some of which are subjective in nature, are subject to periodic review and refinement. Any changes in estimates and allocations that may affect the reported results of any segment will not affect the consolidated financial position or results of operations of People’s United as a whole. Certain reclassifications have been made to prior period segment results to conform to the current period presentation.

FTP, which is used in the calculation of each operating segment’s net interest income, measures the value of funds used in and provided by an operating segment. The difference between the interest income on earning assets and the interest expense on funding liabilities, and the corresponding FTP charge for interest income or credit for interest expense, results in net spread income. For fixed-term assets and liabilities, the FTP rate is assigned at the time the asset or liability is originated by reference to the Company’s FTP yield curve, which is updated daily. For non-maturity-term assets and liabilities, the FTP rate is determined based upon the underlying characteristics, or behavior, of each particular product and results in the use of a historical rolling average FTP rate determined over a period that is most representative of the average life of the particular asset or liability. While the Company’s FTP methodology serves to remove IRR from the operating segments and better facilitate pricing decisions, thereby allowing management to more effectively assess the longer-term profitability of an operating segment, it may, in sustained periods of low and/or high interest rates, result in a measure of operating segment net interest income that is not reflective of current interest rates.

F-90

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

During the quarter ended March 31, 2015, the Company modified its FTP methodology relating to certain deposit products that resulted in a reduction in the funding credit recognized within net interest income for Commercial Banking and Retail Banking, with the offset reflected in Treasury. Prior period segment results have not been adjusted and continue to reflect the previous FTP methodology.

A five-year rolling average net charge-off rate is used as the basis for the provision for loan losses for the respective operating segment in order to present a level of portfolio credit cost that is representative of the Company’s historical experience, without presenting the potential volatility from year-to-year changes in credit conditions. While this method of allocation allows management to more effectively assess the longer-term profitability of a segment, it may result in a measure of segment provision for loan losses that does not reflect actual incurred losses for the periods presented.

People’s United allocates a majority of non-interest expenses to each operating segment using a full-absorption costing process (i.e. all expenses are fully-allocated to the segments). Direct and indirect costs are analyzed and pooled by process and assigned to the appropriate operating segment and corporate overhead costs are allocated to the operating segments. During the quarter ended March 31, 2015, the Company modified its cost allocation methodology with respect to the allocation of branch costs associated with servicing certain customers, which resulted in an increase in non-interest expense for Commercial Banking and Wealth Management, with the offset reflected in Retail Banking. Prior period segment results have not been adjusted and continue to reflect the previous cost allocation methodology. Income tax expense is allocated to each operating segment using a constant rate, based on an estimate of the consolidated effective income tax rate for the year. Average total assets and average total liabilities are presented for each reportable segment due to management’s reliance, in part, on such average balances for purposes of assessing segment performance. Average total assets of each reportable segment include allocated goodwill and intangible assets, both of which are reviewed for impairment at least annually.

The “Other” category includes the residual financial impact from the allocation of revenues and expenses (including the provision for loan losses) and certain revenues and expenses not attributable to a particular segment; assets and liabilities not attributable to a particular segment; reversal of the FTE adjustment since net interest income for each segment is presented on an FTE basis; and the FTP impact from excess capital. The “Other” category also includes certain non-recurring items, such as: gain on sale of business, net of expenses, totaling $9.2 million and $20.6 million for the years ended December 31, 2015 and 2014, respectively (included in total non-interest income); and one-time charges totaling $12.9 million, $9.5 million and $12.7 million for the years ended December 31, 2015, 2014 and 2013, respectively (included in total non-interest expense).

F-91

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

The following tables provide selected financial information for People’s United’s reportable segments:

Year ended December 31, 2015 (in millions)	Commercial Banking		Retail Banking			Total Reportable Segments		Treasury			Other			Total Consolidated
Net interest income (loss)	$	551.6	$	344.6		$	896.2	$	64.4		$	(28.5	)	$	932.1
Provision for loan losses		47.7		15.2			62.9		—			(29.5	)		33.4
Total non-interest income		162.0		169.7			331.7		11.1			9.6			352.4
Total non-interest expense		313.2		520.2			833.4		6.9			20.3			860.6
Income (loss) before income tax expense (benefit)		352.7		(21.1	)		331.6		68.6			(9.7	)		390.5
Income tax expense (benefit)		117.9		(7.0	)		110.9		22.9			(3.4	)		130.4
Net income (loss)	$	234.8	$	(14.1	)	$	220.7	$	45.7		$	(6.3	)	$	260.1
Average total assets	$	21,465.7	$	8,478.1		$	29,943.8	$	6,405.5		$	544.7		$	36,894.0
Average total liabilities		5,483.2		19,235.8			24,719.0		7,194.4			283.3			32,196.7
Year ended December 31, 2014 (in millions)	Commercial Banking		Retail Banking			Total Reportable Segments		Treasury			Other			Total Consolidated
Net interest income (loss)	$	516.0	$	408.0		$	924.0	$	10.7		$	(22.8	)	$	911.9
Provision for loan losses		47.6		16.8			64.4		—			(23.8	)		40.6
Total non-interest income		141.4		167.4			308.8		12.4			29.6			350.8
Total non-interest expense		275.7		528.0			803.7		6.2			31.6			841.5
Income (loss) before income tax expense (benefit)		334.1		30.6			364.7		16.9			(1.0	)		380.6
Income tax expense (benefit)		113.1		10.3			123.4		5.8			(0.3	)		128.9
Net income (loss)	$	221.0	$	20.3		$	241.3	$	11.1		$	(0.7	)	$	251.7
Average total assets	$	19,338.5	$	8,514.8		$	27,853.3	$	5,266.7		$	632.8		$	33,752.8
Average total liabilities		4,275.1		19,109.2			23,384.3		5,423.0			320.1			29,127.4
Year ended December 31, 2013 (in millions)	Commercial Banking		Retail Banking			Total Reportable Segments		Treasury			Other			Total Consolidated
Net interest income (loss)	$	487.7	$	456.3		$	944.0	$	(46.6	)	$	(8.8	)	$	888.6
Provision for loan losses		47.3		15.0			62.3		—			(18.6	)		43.7
Total non-interest income		143.3		180.9			324.2		7.2			10.3			341.7
Total non-interest expense		247.4		551.2			798.6		(1.4	)		41.8			839.0
Income (loss) before income tax expense (benefit)		336.3		71.0			407.3		(38.0	)		(21.7	)		347.6
Income tax expense (benefit)		111.4		23.6			135.0		(12.6	)		(7.2	)		115.2
Net income (loss)	$	224.9	$	47.4		$	272.3	$	(25.4	)	$	(14.5	)	$	232.4
Average total assets	$	16,979.5	$	8,373.4		$	25,352.9	$	5,021.1		$	634.9		$	31,008.9
Average total liabilities		3,459.7		19,064.4			22,524.1		3,352.3			377.7			26,254.1

F-92

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 23 – Parent Company Financial Information

Condensed financial information of People’s United (parent company only) is presented below:

CONDENSED STATEMENTS OF CONDITION

As of December 31 (in millions)	2015		2014
Assets:
Cash at bank subsidiary	$	170.2	$	3.1
Short-term investments		—		1.2
Total cash and cash equivalents		170.2		4.3
Securities available for sale, at fair value		201.4		0.2
Advances to bank subsidiary		100.0		410.0
Investments in subsidiaries:
Bank subsidiary		4,649.2		4,618.3
Non-bank subsidiary		0.8		0.4
Goodwill		197.1		197.1
Other assets		39.3		34.2
Total assets	$	5,358.0	$	5,264.5
Liabilities and Stockholders’ Equity:
Notes and debentures	$	622.5	$	621.1
Other liabilities		3.9		10.3
Stockholders’ equity		4,731.6		4,633.1
Total liabilities and stockholders’ equity	$	5,358.0	$	5,264.5

CONDENSED STATEMENTS OF INCOME

Years ended December 31 (in millions)	2015			2014			2013
Revenues:
Interest income:
Advances to bank subsidiary	$	4.4		$	4.4		$	4.1
Securities		1.1			0.4			0.3
Total interest income		5.5			4.8			4.4
Dividend from bank subsidiary		245.0			244.0			232.0
Security gain		—			2.3			—
Other non-interest income		4.2			1.2			2.0
Total revenues		254.7			252.3			238.4
Expenses:
Interest on notes and debentures		22.5			22.4			23.0
Non-interest expense		2.8			6.1			6.8
Total expenses		25.3			28.5			29.8
Income before income tax benefit and subsidiaries undistributed income		229.4			223.8			208.6
Income tax benefit		(5.5	)		(6.6	)		(7.4	)
Income before subsidiaries undistributed income		234.9			230.4			216.0
Subsidiaries undistributed income		25.2			21.3			16.4
Net income	$	260.1		$	251.7		$	232.4

F-93

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

Years ended December 31 (in millions)	2015			2014			2013
Net income	$	260.1		$	251.7		$	232.4
Other comprehensive loss, net of tax:
Net unrealized losses on securities available for sale		(0.4	)		—			(0.2	)
Net unrealized gains on derivatives accounted for as cash flow hedges		0.2			0.2			1.2
Other comprehensive loss of bank subsidiary		(8.8	)		(13.3	)		(59.2	)
Total other comprehensive loss, net of tax		(9.0	)		(13.1	)		(58.2	)
Total comprehensive income	$	251.1		$	238.6		$	174.2

CONDENSED STATEMENTS OF CASH FLOWS

Years ended December 31 (in millions)	2015			2014			2013
Cash Flows from Operating Activities:
Net income	$	260.1		$	251.7		$	232.4
Adjustments to reconcile net income to net cash provided by operating activities:
Subsidiaries undistributed income		(25.2	)		(21.3	)		(16.4	)
Security gain		—			(2.3	)		—
Net change in other assets and other liabilities		(0.4	)		0.2			(2.4	)
Net cash provided by operating activities		234.5			228.3			213.6
Cash Flows from Investing Activities:
Proceeds from principal repayments and maturities of securities available for sale		1.2			—			—
Proceeds from sale of security available for sale		—			5.0			—
Purchases of securities available for sale		(202.9	)		—			—
Decrease (increase) in advances to bank subsidiary		310.0			(57.0	)		485.0
Net cash provided by (used in) investing activities		108.3			(52.0	)		485.0
Cash Flows from Financing Activities:
Repayment of notes and debentures		—			—			(20.6	)
Cash dividends paid on common stock		(201.2	)		(196.9	)		(204.8	)
Common stock repurchases		(3.2	)		(3.0	)		(461.1	)
Proceeds from stock options exercised, including excess income tax benefits		27.5			6.0			2.4
Net cash used in financing activities		(176.9	)		(193.9	)		(684.1	)
Net increase (decrease) in cash and cash equivalents		165.9			(17.6	)		14.5
Cash and cash equivalents at beginning of year		4.3			21.9			7.4
Cash and cash equivalents at end of year	$	170.2		$	4.3		$	21.9

F-94

People’s United Financial, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 24 – Selected Quarterly Financial Data (Unaudited)

The following table presents People’s United’s quarterly financial data for 2015 and 2014:

	2015												2014
(in millions, except per share data)	First			Second			Third			Fourth			First			Second			Third			Fourth
Interest and dividend income	$	260.3		$	264.5		$	269.9		$	274.2		$	255.4		$	256.7		$	258.9		$	259.6
Interest expense		32.2			34.1			35.1			35.4			28.3			28.5			30.4			31.5
Net interest income		228.1			230.4			234.8			238.8			227.1			228.2			228.5			228.1
Provision for loan losses		9.8			7.7			6.2			9.7			9.5			8.8			12.4			9.9
Net interest income after provision for loan losses		218.3			222.7			228.6			229.1			217.6			219.4			216.1			218.2
Non-interest income		89.0			83.0			87.1			93.3			79.9			100.1			84.0			86.8
Non-interest expense		217.6			211.8			214.2			217.0			216.7			208.3			208.8			207.7
Income before income tax expense		89.7			93.9			101.5			105.4			80.8			111.2			91.3			97.3
Income tax expense		30.5			32.2			33.1			34.6			27.7			38.9			29.7			32.6
Net income	$	59.2		$	61.7		$	68.4		$	70.8		$	53.1		$	72.3		$	61.6		$	64.7
Basic EPS (1)	$	0.20		$	0.20		$	0.23		$	0.23		$	0.18		$	0.24		$	0.21		$	0.22
Diluted EPS (1)		0.20			0.20			0.23			0.23			0.18			0.24			0.21			0.22
Average common shares outstanding:
Basic		299.15			300.09			301.00			301.38			297.69			298.22			298.42			298.63
Diluted		299.15			300.09			301.00			301.38			297.72			298.24			298.44			298.65
Common stock price:
High	$	15.45		$	16.64		$	16.95		$	16.93		$	15.70		$	15.23		$	15.32		$	15.50
Low		13.97			14.92			14.69			15.00			13.73			14.00			14.24			13.61
Dividends paid		49.5			50.5			50.6			50.6			48.6			49.4			49.4			49.5
Dividends per share		0.165			0.1675			0.1675			0.1675			0.1625			0.165			0.165			0.165
Dividend payout ratio		83.7	%		81.8	%		73.9	%		71.5	%		91.5	%		68.4	%		80.2	%		76.5	%

(1) The sum of the quarterly earnings per share amounts for 2014 does not equal the full-year amount due to rounding and/or changes in average share count for the respective periods.

F-95

INDEX TO EXHIBITS

Designation	Description
10.7(a)*	Form of Grant Agreement for Performance Shares under People’s United Financial, Inc. 2014 Long-Term Incentive Plan
10.11*	People’s United Bank, N.A. Nonqualified Savings and Retirement Plan (amended and restated as of January 1, 2016)
12.1	Consolidated Ratio of Earnings to Fixed Charges
12.2	Consolidated Combined Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
21	Subsidiaries
23	Consent of KPMG LLP
31.1	Rule 13a-14(a)/15d-14(a) Certifications
31.2	Rule 13a-14(a)/15d-14(a) Certifications
32	Section 1350 Certifications
99.1	Impact of Inflation
101.1	The following financial information from People’s United Financial, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 formatted in XBRL: (i) Consolidated Statements of Condition as of December 31, 2015 and 2014; (ii) Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013; (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2015, 2014 and 2013; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013; and (vi) Notes to Consolidated Financial Statements.

* Each exhibit identified by an asterisk constitutes a management contract or compensatory plan, contract or arrangement.

EX-10.7(A)

Exhibit 10.7(a)

PERFORMANCE SHARE GRANT AGREEMENT

Employee Name:	[Participant Name]
Number of Performance Shares Subject to Grant (Target):	[Shares Granted]
Award Date:	[Grant Date]

THIS PERFORMANCE SHARE GRANT AGREEMENT (this “Agreement”) is made as of the Award Date shown above by People’s United Financial, Inc., a Delaware corporation, and its subsidiaries (the “Company”), and is hereby communicated to the employee named above (the “Employee”). Undefined capitalized terms used in this Agreement shall have the meanings set forth in the Company’s 2014 Long-Term Incentive Plan as may be amended from time to time (the “Plan”).

WHEREAS, the Company maintains the Plan.

WHEREAS, pursuant to Section 5 of the Plan, the Committee may grant awards of Performance Shares to employees, representing the right to receive Shares based on the extent specified performance goals are achieved.

WHEREAS, the Company desires to compensate the Employee with a grant of Performance Shares for the Employee’s future services to the Company.

NOW, THEREFORE, in consideration of the premises, the Company grants the Employee an Award of Performance Shares under the following terms and conditions:

1. Grant of Performance Shares.

The Company hereby grants to the Employee a target Award of the number of Performance Shares identified above (the “Grant”), which may be increased or decreased depending on attainment of the performance criteria identified in this Agreement (the “Performance Measure(s)”) to be issued in accordance with all of the terms and conditions set forth in this Agreement and the Plan. Each Performance Share shall be equivalent to one Share until such time as Shares are issued in payment of Performance Shares in accordance with Section 6. All terms and conditions set forth in the Plan are deemed to be incorporated herein in their entirety.

2. Book Entry.

The number of Performance Shares granted pursuant to this Agreement shall be credited to the Employee and shall be maintained on the books of the Company until Shares have been issued to the Employee (or the Employee’s beneficiaries if the Employee is deceased) in payment therefor in accordance with Section 6. No funds shall be set aside or earmarked for any Performance Shares, which shall be purely a bookkeeping device.

3. Performance Period and Vesting Provisions.

(a) The Performance Period is the period beginning on January 1,         , and ending on December 31,         .

(b) Except as provided in this Agreement, the Employee’s Performance Shares will vest only upon the Employee’s continued employment through March 1 following expiration of the Performance Period, provided that the Committee certifies the Performance Measure(s) for the Performance Period have been achieved as set forth in Appendix A attached to this Agreement. Appendix A shall set forth the applicable Performance Measures and payout percentages based on the attainment of “Threshold,” “Target,” and “Maximum” performance levels for each Performance Measure.

(c) Notwithstanding any provision to the contrary, if at any time after the Date of Grant, and before the date that Performance Shares are paid, the Employee’s employment or service with the Company terminates due to death, Disability or Retirement, the Employee shall vest in all of the Performance Shares granted pursuant to this Agreement and related cash dividends, provided that payment of any Award becoming vested pursuant to this subsection (c), including the number of Shares to be issued in payment of the Award and determination of the time of payment, shall be made in accordance with the provisions of Section 6(b).

4. Forfeiture Provisions.

(a) If before the date that the Company pays the Performance Shares the Employee’s employment or service with the Company is terminated for any reason other than death, Disability or Retirement, all of the Employee’s unvested Performance Shares and any unvested cash dividends shall be forfeited.

(b) Notwithstanding any provision of this Agreement to the contrary, the Committee may cause the Employee to forfeit all unvested Performance Shares and require repayment of any amount previously paid under this Agreement in accordance with the terms of the Company’s Incentive Compensation Clawback Policy (“the Policy”), any other applicable policy of the Company, and any other applicable laws and regulations.

(c) This Grant is subject to acceptance of all the terms, conditions and limitations of the Plan. The Plan may be amended from time to time, including but not limited to provisions on tax withholding and forfeiture. This Grant is subject to such rules and regulations that the Committee may adopt for administration of the Plan, and to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

5. Change in Control.

In the event of a Change in Control of the Company described in Section 2(j) of the Plan, the rights of the Employee with respect to the Performance Shares shall be determined in accordance with the provisions of Section 17(b) of the Plan.

6. Issuance of Stock.

(a) Except as provided in subsection (b), following completion of the Performance Period, the Committee shall determine the extent to which applicable Performance Measure(s) have been attained and shall calculate the number of Shares to be issued in payment of each Performance Share in accordance with the provisions of Appendix A. The Company will cause the number of Shares so calculated to be delivered to or for the account of the Employee within 60 days after the date the Performance Shares vest or as soon as administratively possible after such date (but in no event later than December 31^st of the year after the year in which the Performance Period expired), except as otherwise provided in Section 12 below. If the number of Shares so calculated is zero, the Employee shall be deemed to have received payment in full for the Performance Shares made the subject of this Grant even though no Shares are delivered or deliverable.

(b) In the event Performance Shares become vested on an accelerated basis pursuant to Section 3(c) due to the death or Disability of the Employee, the Company will cause a number of Shares equal to the number of Performance Shares granted pursuant to this Agreement to be delivered to or for the account of

the Employee as soon as administratively possible after the date such Performance Shares became vested. In the event Performance Shares become vested on an accelerated basis pursuant to Section 3(c) due to the Retirement of the Employee, the number of Shares to be issued in payment of such Performance Shares shall be calculated and such shares shall be delivered to or for the account of the Employee in the manner and at the time described in subsection (a); provided, however, that in the event of such Employee’s death prior to March 1 following the end of the Performance Period, the Company will cause a number of Shares equal to the number of Performance Shares granted pursuant to this Agreement to be delivered to or for the account of the Employee as soon as administratively possible after the date of the Employee’s death.

(c) Notwithstanding any provision to the contrary, if, in the reasonable determination of the Company, an Employee is a “specified employee” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, and the guidance promulgated thereunder (“Code Section 409A”), then, if necessary to avoid the imposition on the Employee of excise tax and interest under Code Section 409A, the Company shall not deliver the Shares otherwise payable upon the Employee’s termination and separation of service until the date that is 30 days after 6 months following the Employee’s termination and separation of service from the Company.

(d) The delivery of the Shares shall be subject to payment of the applicable withholding tax liability as set forth in Section 7.

(e) If the Employee dies before the Company has distributed any portion of the vested Performance Shares, the Company will transfer any Shares payable with respect to the vested Performance Shares in accordance with the Employee’s written beneficiary designation or to the Employee’s estate if no written beneficiary designation is provided. If the Employee did not have a will, any Shares payable with respect to the vested Performance Shares will be distributed in accordance with the laws of descent and distribution.

7. Withholding Taxes.

The Company shall have the power and the right to deduct or withhold, or require the Employee to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Agreement.

8. Non-transferability of Grant.

During the Performance Period, the Employee shall have no right to transfer, sell, pledge, assign, or hypothecate, other than by will or the laws of descent and distribution, any rights with respect to the Employee’s Award of Performance Shares. No Performance Shares shall be subject to execution, attachment, or similar process.

9. No Voting Rights as Stockholder.

The Employee shall not have any voting rights as a stockholder of the Company with respect to the Performance Shares, but shall have such rights with respect to any Shares issued to the Employee in payment of such Performance Shares.

10. Dividends.

To the extent that cash dividends are paid on Shares after the Date of Grant and before the date the Employee receives Shares in payment for Performance Shares subject to this Grant, the Employee shall receive credits of cash in a dividend bookkeeping account (the “Dividend Account”). Such cash credits shall be equal in value (based on the reported dividend rate on the date dividends were paid) to the amount of dividends paid on the Shares delivered to or for the account of the Employee in payment for the Performance Shares. The Employee shall vest in the cash in the Dividend Account in accordance with Section 3 of the Agreement in the same manner that the Employee vests in the Performance Shares granted pursuant to this Agreement. On the date that the Employee receives a distribution of Shares, the Employee shall also receive a distribution of the cash in the Dividend Account.

11. Capital Adjustment Provisions.

In the event of the occurrence of an event described in Section 17(a) of the Plan, the number of Performance Shares granted to the Employee shall be adjusted in accordance with the provisions of Section 17(a) of the Plan.

12. Securities Law Compliance.

The delivery of all or any of the Shares shall only be effective at such time that the issuance of such Shares will not violate any state or federal securities or other laws. The Company is under no obligation to effect any registration of Shares under the Securities Act of 1933 or to effect any state registration or qualification of the Shares. The Company may, in its sole discretion, delay the delivery of the Shares or place restrictive legends on such Shares in order to ensure that the issuance of any Shares will be in compliance with federal or state securities laws and the rules of the NASDAQ Global Select or any other exchange upon which the Company’s common stock is traded. If the Company delays the delivery of the Shares in order to ensure compliance with any state or federal securities or other laws, the Company shall deliver the Shares at the earliest date at which the Company reasonably believes that such delivery will not cause such violation, or at such other date that may be permitted under Code Section 409A.

13. Plan Governs.

The Grant is made under the Plan. In the event of a conflict between one or more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan shall govern. A copy of the Plan is available upon request by contacting the Human Resources Department at the Company’s executive offices.

14. No Right to Continued Employment.

The Employee understands and agrees that this Agreement does not impact in any way the right of the Company to terminate or change the terms of the employment of Employee at any time for any reason whatsoever, with or without cause, nor confer upon any right to continue in the employ of the Company.

15. Addresses for Notices.

Any notice to be given to the Company under the terms of this Agreement shall be addressed to the Company and directed to the attention of the Committee, care of People’s United Bank, N.A., 850 Main Street, Bridgeport, CT 06604, or at such other address as the Company may hereafter designate in writing. Any notice to be given to the Employee shall be addressed to the Employee at the address maintained on the books and records of the Company.

16. Captions.

Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

17. Severability.

In the event that any provision in this Agreement shall be held invalid or unenforceable, such provision shall be severable from, and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of this Agreement.

18. Expenses.

Costs of administration of the terms and conditions of this Agreement will be paid by the Company.

19. Governing Law / Compliance with Applicable Law.

The terms and conditions of this Agreement shall be governed by the laws of the State of Connecticut, except to the extent preempted by federal law.

20. Entire Agreement; Amendment; Code Section 409A Provisions.

This Agreement and the Plan contain the terms and conditions with respect to the subject matter hereof and supersede any previous agreements, written or oral, relating to the subject matter hereof. This Agreement shall be interpreted in accordance with Code Section 409A. This Agreement shall be deemed to be modified to the maximum extent necessary to be in compliance with Code Section 409A’s rules. If the Employee is unexpectedly required to include in the Employee’s current year’s income any amount of compensation relating to the Performance Shares because of a failure to meet the requirements of Code Section 409A, then to the extent permitted by Code Section 409A, the Employee may receive a distribution of Shares or cash in an amount not to exceed the amount required to be included in income as a result of the failure to comply with Code Section 409A.

21. Non-Solicitation.

During the period of Employee’s employment with the Company, and for a period of      months after the cessation of such employment for any reason, whether with or without cause, Employee will not, directly or indirectly , on his or her own behalf or on behalf of any other person, and whether through his or her own efforts or through the efforts or employing the assistance of any other person (including without limitation any consultant or any person employed by or associated with any person with whom Employee become employed or associated):

a) call on or solicit in any manner any customer of the Company for the purpose of doing business of the type done by the Company with such customer. For purposes of this Agreement, “customer” means any individual, firm, partnership, corporation, or other entity or person (i) currently doing business or who has done business with the Company in the 12 months prior to the cessation of Employee’s employment, or (ii) any prospective customer that Employee knows to be a prospective customer of the Company and with whom the Company is in discussion with and reasonably expects to do business; or

b) Solicit or otherwise induce any employee of the Company to leave the employ of the Company.

By accepting and agreeing to the terms of this Agreement, Employee acknowledges that his or her receipt of the grant of the Award evidenced by this Agreement represents adequate consideration for the undertaking set forth in this Section 21.

22. Acceptance of Grant; Revocation.

No later than forty-five (45) days after the date of this Award (the “Acceptance Date”), Employee must formally accept and agree to the terms of the Award as set forth in this Agreement. Employee must do so(a) electronically if Employee is directed to do so at the time the Award is formally communicated to him or her and Employee receives a copy of this Agreement, or (b) by returning a signed copy of this Agreement to the Executive Rewards Manager in the Human Resources Department, 850 Main Street, BC-03, Bridgeport, CT 06604 so that it is actually received no later than the close of business on the Acceptance Date. If Employee does not accept and agree to the terms and conditions of the Award as set

forth in this Agreement by the Acceptance Date, the Award evidenced hereby shall be null and void, and shall be deemed to have been revoked, on the first business day following the Acceptance Date. If the 45^th day after the date of this Award is not a business day, the Acceptance Date will be the first business day after such 45^th day. A business day is any day other than a Saturday, a Sunday or a day on which the Company’s banking offices in Connecticut are not scheduled to be open for business.

Approval and Acceptance

The Award evidenced by this Agreement was approved by the Board of Directors (or by a duly authorized committee of the Board or the Chief Executive Officer acting pursuant to delegated authority) of the Company on the Award date. The Employee’s acceptance of the Award evidenced by this Agreement, whether electronically, by email or in such other form as is permitted by the Company, also evidenced the Employee’s intent to be legally bound by the terms of this Agreement effective as of the Award date, regardless of the date of the Employee’s acceptance.

EX-10.11

Exhibit 10.11

PEOPLE’S UNITED BANK, N.A.

NONQUALIFIED SAVINGS AND RETIREMENT PLAN

(amended and restated as of January 1, 2016)

PEOPLE’S UNITED BANK, N.A.

NONQUALIFIED SAVINGS AND RETIREMENT PLAN

People’s United Bank, National Association, a national banking association (the “Bank”), hereby amends and restates the People’s United Bank Nonqualified Savings and Retirement Plan (the “Plan”) as of January 1, 2016 except as otherwise provided herein.

ARTICLE I

PRELIMINARY BACKGROUND

The Plan was initially established and maintained for many years to enable designated employees of the Bank (formerly known as People’s Bank and People’s United Bank) who were adversely impacted by Code restrictions applicable to tax-qualified plans and corresponding provisions of the 401(k) Plan to elect to obtain additional benefits equal to those not available under the 401(k) Plan because of such restrictions. The Plan is not qualified under the provisions of the Code and benefits are provided on an unfunded basis for purposes of the Code. Effective as of August 14, 2006, the Bank added new employer contribution credit provisions with respect to certain eligible Plan Participants. Effective as of November 1, 2008, the Bank revised the method by which earnings credits are made to Participants’ Accounts under the Plan. Effective as of January 1, 2012, the Plan was amended to eliminate discretionary matching contribution credits and certain employer contribution credits, and to expand the class of employees eligible to receive other types of employer contribution credits. Effective as of January 1, 2013, the Plan was amended to permit eligible Plan Participants to make certain elections regarding the form of distribution for accrued Plan balances. Effective as of January 1, 2016, the Bank added a new employer contribution credit provision with respect to certain eligible Plan Participants.

ARTICLE II

DEFINITIONS

Unless the context clearly otherwise requires, as used in the Plan, the following terms shall have the references and meanings set forth in this Section 2.

2.1. “Account” shall refer to the total of any Participant’s Grandfathered Account, Current Plan Account and Deferral Account of each Participant. The Grandfathered Account and Current Plan Account of each Participant whose Credited Service has not terminated prior to December 1, 2008 shall merge into a single Deferral Account.

2.2. “Administrative Committee” shall mean the Administrative Committee appointed from time to time pursuant to Section 13.1 of the 401(k) Plan.

2.4. “Annual Post-2012 Subaccount” shall refer to that portion of the Participant’s Post-2012 Account as is equal to the sum of (a) Participant Contributions for any given calendar year subsequent to 2012, plus (b) all Bank matching contributions attributable to Participant Contributions for the applicable year, plus (c) all Restoration Benefit Contributions attributable to the Participant’s compensation for the applicable year, plus (d) the FICA Offset Contribution (if applicable), plus (e) all adjustments and credits attributable to the foregoing, determined in the manner set forth in Article VI hereof. A Participant’s Annual Post-2012 Subaccount for a given year may be designated by reference to a particular calendar year. For example, the Participant’s Annual Post-2012 Subaccount attributable to Participant Contributions and related contributions and credits for 2013 may be referred to as the Participant’s “2013 Subaccount.”

2.5. “Annual Valuation Date” shall mean December 31 of any year during which any Plan benefits are in pay status provided that in the event the Bank changes its fiscal year, the Bank may change the date of subsequent Annual Valuation Dates, but in no event shall more than twelve months elapse without an Annual Valuation Date other than by reason of there being no Plan benefits in pay status.

2.6. “Bank” shall mean People’s United Bank, National Association, which is a national banking association organized under the laws of the United States, and any successor thereto.

2.7. “Beneficiary” shall mean any person who is entitled to benefits accrued to a deceased Participant pursuant to the terms of the Plan or who would be so entitled in the event of the death of a Participant.

2.8. “Board” shall mean the Board of Directors of the Bank or any similar body carrying out the functions such body carried out as of January 1, 2008.

2.9. “CEO” shall mean the Chief Executive Officer of the Bank or such officer or other person as may as of the time of reference have substantially the responsibilities and duties of the Chief Executive Officer of the Bank as of January 1, 2008.

2.10. “Change in Control” shall mean the occurrence of any of the following:

(a) The Board of Directors of the Bank or Parent, shall approve (A) a merger or consolidation (or series of mergers and consolidations) of the Bank or Parent with any other corporation other than (1) a merger or consolidation (or series of mergers and consolidations) which would result in the voting stock (as described in Subsection (b) of this Section) of the Bank or Parent outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting stock of the surviving entity) more than 80% of the combined voting power of the voting stock of the Bank or Parent (or such surviving entity) outstanding immediately after such merger or consolidation, or (2) a merger or consolidation effected to implement a recapitalization of

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the Bank or Parent (or similar transaction) in which no “person” (as defined in Subsection (b) of this Section) acquires more than 20 percent of the combined voting power of the then outstanding securities of the Bank or Parent, or (B) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Bank or Parent, or (C) the adoption of any plan or proposal for the liquidation or dissolution of the Bank;

(b) Any person (as such term is defined in Section 3(a)(9) and Section 13(d)(3) of the Exchange Act), corporation, or other entity (other than the Bank, Parent, or any benefit plan, including, but not limited to, any employee stock ownership plan, sponsored by the Bank, Parent, or any subsidiary) shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities representing 20 percent or more of the combined voting power of the then outstanding securities of the Bank or Parent ordinarily (and apart from rights accruing under special circumstances) having the right to vote in the election of directors (calculated as provided in paragraph (d) of such Rule 13d-3 in the case of rights to acquire such securities); or

(c) During any period of two consecutive calendar years, individuals who at the beginning of such period constitute the entire Board of Directors of the Bank or Parent, and any new director (excluding a director designated by a person who has entered into an agreement with the Bank or Parent to effect a transaction described in Subsection (a) or (b) of this Section) whose election by the Board of Directors or nomination for election by the shareholders of the Bank or Parent was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved (“Incumbent Board”), shall cease for any reason to constitute a majority thereof.

2.11. “Code” shall mean the Internal Revenue Code of 1986 as it has been, or hereafter from time to time may be amended, and all reference to it or any provision thereof shall include any law which in the future may supersede it or such provision.

2.12. “Committee” shall mean the Human Resources Committee of the Board or such other committee of the Board or of the Board of Directors of Parent as may as of the time of reference have substantially the responsibilities and duties of the Human Resources Committee as of January 1, 2008.

2.13. “Credited Service” shall mean the period of an employee’s employment as an employee, subject to the terms and conditions set forth in Article XVI hereof.

2.14. “Current Plan Account” shall refer to the Account established for a Participant to which all contributions made or credited on behalf of such Participant pursuant to the Plan after December 31, 2004 and before December 1, 2008 (as adjusted pursuant to Article VI hereof) have been or may be credited.

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2.15. “Deferral Account” shall refer to the account to which all Participant Contributions, Bank matching contributions (as provided for in Section 4.5), Enhanced Benefit Contributions, Restoration Benefit Contributions and the FICA Offset Contribution are allocated on or after December 1, 2008, plus any amount resulting from the merger of the Grandfathered Account and Current Plan Account, as adjusted in accordance with Article VI.

2.16. “Election Compensation” shall mean and include the sum of (i) and (ii) where (i) is the total amount of salary, wages or compensation paid to Participant by the Bank during the Plan Year for services rendered as an employee of the Bank including overtime pay, commissions, and bonuses, but excluding any equity based compensation and earnings thereon, incentive payments with an accrual or vesting period longer than one year (and such exclusion shall apply to the year of deferral and the year of payment), and furthermore excluding any fees, credits or benefits under this Plan, the 401(k) Plan, the Retirement Plan, the People’s United Financial, Inc. Employee Stock Ownership Plan, the People’s United Bank Cap Excess Plan, the People’s United Bank Enhanced Senior Pension Plan, or any other benefits under plans (whether or not qualified under the Code) providing for deferral of income, severance pay, payments for reimbursement of business expenses incurred by the Participant, tuition reimbursement, insurance premiums paid by the Bank or other special emoluments; and (ii) is the total amount of salary reduction contributions made by the Bank on behalf of a Participant during the Plan Year under this Plan or the 401(k) Plan and any salary reductions agreed to by the Participant pursuant to salary reduction agreements under a plan which meets the requirements of Section 125 of the Code. Election Compensation for any Plan Year beginning after December 31, 2004 shall include any STIP bonus based on service during such Plan Year and payable in the next subsequent year and shall exclude any STIP bonus paid during such Plan Year but based on service for any prior Plan Year. In the event an individual becomes a Participant after the first day of a Plan Year because he first became eligible to participate in the Plan during such Plan Year, Election Compensation for such Plan Year shall apply only to otherwise Election Compensation which is both (x) earned with respect to services rendered after the end of the payroll period during which such Participant makes a contribution election pursuant to Section 4.4 and (y) paid on or after the first payroll date on which contributions may be withheld in accordance with the Bank’s payroll practices; provided that any STIP Bonus or other compensation based on services for a Plan Year or other specified period earned for performance during such Plan Year and included in his Election Compensation for such Plan Year shall equal a portion of such STIP Bonus or such other compensation for such Plan Year multiplied by the ratio of the number of full calendar months remaining in such performance period beginning with the first day of the second calendar month after such election over the total number of full calendar months in the performance period.

2.17. “Election Match Compensation” shall mean for any Plan Year a Participant’s Election Compensation for such Plan Year adjusted so as to substitute the STIP payment actually received during such Plan Year for the STIP bonus earned for such Plan Year but paid in a subsequent Plan Year.

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2.18. “Eligible Voters” shall mean (i) Participants employed by the Bank after May 1, 1998 who have unpaid benefits under the Plan and (ii) Beneficiaries of such deceased Participants who have unpaid benefits under the Plan; but excluding (A) after a Change in Control any person who was not a Participant or a Beneficiary sixty-five (65) days prior to the earlier of such Change in Control or the beginning of the Potential Change in Control Period ending with such Change in Control and (B) during a Potential Change in Control Period any person not a Participant or Beneficiary prior to the beginning thereof; provided, however, that in the event there is more than one such Beneficiary with respect to any individual deceased Participant, such Beneficiaries shall have a single vote which shall be cast as determined by a majority in interests of all Beneficiaries of such deceased Participant.

2.19. “Enhanced Benefit Contribution” shall mean with respect to an eligible Participant four percent (4%) of such Participant’s Election Compensation. No Enhanced Benefit Contribution shall be made for any Plan Year beginning after December 31, 2011.

2.20. “FICA Offset Contribution” means an amount equal to the excess (if any) of (a) the estimated federal employment taxes payable by a Participant with respect to Enhanced Benefit Contributions and/or Restoration Benefit Contributions described in Section 4.8 upon distribution of such Participant’s Account balance, based on application of the “general timing method,” over (b) the amount of federal employment taxes such Participant would have paid with respect to Enhanced Benefit Contributions and/or Restoration Benefit Contributions described in Section 4.8 in the year in which such contributions were actually made, based on application of the “special timing method.

2.21. “401(k) Plan” shall mean the People’s Bank 401(k) Employee Savings Plan as it may be amended from time to time.

2.22. “401(k) Maximum Basic Employer Contribution” for a Plan Year shall mean with respect to any Participant four percent (4%) of such Participant’s 401(k) Election Compensation for such Plan Year regardless of the amount of any contributions actually made with respect to such Participant under the 401(k) Plan.

2.23. “401(k) Maximum Discretionary Employer Contribution” shall mean with respect to a Participant one percent (1%) or such other percent as the Bank may determine to make for such Plan Year as a discretionary contribution under the 401(k) Plan multiplied by a Participant’s 401(k) Election Compensation regardless of the amount of any contributions made with respect to such Participant under the 401(k) Plan. Notwithstanding the foregoing, no Discretionary Employer Contribution shall be made to the Plan for any Plan Year beginning on or after January 1, 2012.

2.24. “401(k) Election Compensation” shall mean for a Participant for a Plan Year the total salary for such Plan Year as defined by the 401(k) Plan with respect to which a Participant would be able to elect to make employee contributions under the terms of the 401(k) Plan for such Plan Year without regard to maximum contribution limitations thereunder, but taking into account the limitations under Section 401(a)(l7) of the Code as reflected in the 401(k) Plan for such Plan Year.

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2.25. “Full Funding Amount” shall mean an amount which the Recordkeeper calculates based on the best information available to it, to be equal to the total amount of any vested and unpaid benefits of all Participants who are employees of the Bank after May 1, 1998 (and their Beneficiaries) and Beneficiaries of any such deceased Participants as of the valuation requirement date. For purposes of this Section 2.24, the “valuation requirement date” refers to (1) the date of an actual Change in Control or (2) the date which is reasonably selected during a Potential Change in Control Period by the Bank or the Trustee, or (3) if such calculation is not on or after a Change in Control or during a Potential Change in Control Period any date which is reasonable and convenient. Calculations and recalculations of the Full Funding Amount (as described in Article IX hereof) shall assume that each Participant terminated employment as of the valuation requirement date of such calculation or recalculation. In computing the Full Funding Amount, there shall be added an amount equal to an amount calculated by the Trustee to be likely to be sufficient to provide for all expenses in administering and terminating the Trust and distributing benefits, including reasonable expenses of the Committee (if then in existence) and of any litigation or other assertion of claims which the Trustee deems to have a higher degree of probability than extremely remote, including (but not limited to) any such litigation or other assertion of claims which the Trustee may institute or assert against the Bank.

2.26. “Grandfathered Account” shall refer to the Account established for each Participant who was such prior to January 1, 2005 to which all contributions made on behalf of such Participant prior to January 1, 2005 (as adjusted pursuant to Article VI hereof) have been credited.

2.27. The Bank shall be considered “Insolvent” and the Bank shall be deemed subject to insolvency for purposes of the Trust Agreement if (i) the Bank is unable to pay its debts as they become due, or (ii) the Bank is subject to a pending proceeding as a debtor under the United States Bankruptcy Code, or (iii) the Bank is determined to be insolvent by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve Bank, or any other federal or state authority having the power to act as or to appoint a receiver or similar officer in the event it finds the Bank is insolvent.

2.28. “Interest Credit Date” shall mean November 1, 2008.

2.29. “Interim Funding Amount” shall mean an amount which the Recordkeeper calculates based on the best information available to him to be equal to the total amount of any vested and unpaid benefits of (i) all Participants who are employees of the Bank after May 1, 1998, and who as of the Interim Valuation Requirement Date requiring such calculation either (A) are no longer employees of the Bank or (B) have attained age sixty-three (63) and three hundred twenty-five (325) days and (ii) all Beneficiaries of deceased Participants entitled to benefits under the Plan as a result of such deceased Participants’ death. In computing the Interim Funding Amount, there shall be added an amount equal to an amount estimated by the

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Trustee to be likely to be sufficient to provide for all expenses in administering the Trust and distributing benefits for the sixty (60) months following the relevant Interim Valuation Requirement Date, including reasonable expenses of the Committee (if then in existence) and of any litigation or other assertion of claims which the Trustee deems to have a higher degree of probability than remote, including (but not limited to) any such litigation or other assertion of claims which the Trustee may institute or assert against the Bank.

2.30. “Interim Valuation Requirement Date” shall mean the last date of each fiscal year of the Bank.

2.31. The terms “Interim 2005 Procedures” and “Interim 2006 Procedures” shall mean the Procedures described as such respectively in Appendix A adopted by the Bank to govern certain aspects of plan operations from October 4, 2004 through December 31, 2006 in a good faith attempt to conform with US Treasury Proposed Regulations, Revenue rulings and Guidance pursuant to Section 409A of the Code.

2.31. “Minimum Salary Grade” means the salary grade identified as such on Appendix B hereto (as the same may be updated from time to time with the approval of the CEO or his designee), in each case as in effect during the “Effective Period” designated in such Appendix B.

2.32. “Normal Retirement Date” shall mean the date upon which a Participant attains age sixty-five (65).

2.33. “Parent” shall mean People’s United Financial, Inc., a Delaware corporation, or its corporate successor or assigns; and the determination of whether any corporation or other entity is a successor or assign of said People’s United Financial, Inc., for purposes of this Agreement shall be made by the CEO or, in the event there is no then acting CEO, by the Board of Directors of the Bank.

2.34. “Participant” shall mean, any employee of the Bank who is covered by the Plan and any former employee of the Bank for whom amounts have been credited pursuant to the provisions of this Plan and who has not yet received her or his full vested benefit hereunder.

2.35. “Participant Contributions” shall mean amounts contributed for the benefit of a Participant pursuant to an election by a Participant described in the provisions of Section 4.1, 4.2, 4.3 or 4.4.

2.36. The “Plan” shall mean this People’s United Bank, N.A. Nonqualified Savings and Retirement Plan as amended through the date hereof and as it may be amended from time to time hereafter. The Plan was formerly known as the People’s United Bank Nonqualified Savings and Retirement Plan, the People’s United Bank Supplemental Savings Plan, and the People’s Bank Supplemental Savings Plan.

2.37. “Plan Interest” shall mean interest computed at the nominal annual rate, compounded monthly, as will result in an annual percentage yield (APY) at the rate set forth on

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Appendix C hereto for the applicable Plan Years (or partial Plan Year for 2008) specified in such Appendix C. Upon recommendation of the Administrative Committee, the Committee may (but shall not be required to) increase or decrease the annual percentage yield rate for a Plan Year prior to the beginning of such Plan Year.

2.38. “Plan Year” shall mean the twelve (12) month period beginning each January 1 and ending each December 31.

2.39. “Post-2012 Account” shall refer to that portion of the Participant’s Account as is equal to the difference between (a) the aggregate balance of the Participant’s Account minus (b) the balance of the Participant’s Pre-2013 Account. A Participant’s Post-2012 Account shall be further subdivided into a series of Annual Post-2012 Subaccounts for each successive calendar year subsequent to 2012, as defined elsewhere herein.

2.40. A “Potential Change in Control” shall be deemed to have occurred under this Agreement if (i) the Bank or Parent enters into any agreement the consummation of which would result in the occurrence of a Change in Control, or (ii) the CEO declares in writing that, or the Board of Directors of the Bank or Parent adopts a resolution to the effect that, a Potential Change in Control has occurred.

2.41. “Potential Change in Control Period” shall mean the period commencing on the date that a Potential Change in Control occurs and ending upon the earlier to occur of the following: (i) the date of a Change in Control, or (ii) the date such Potential Change in Control Period ends in accordance with the provisions of the Trust Agreement.

2.42. “Pre-2013 Account” shall refer to that portion of the Participant’s Account as is equal to the sum of (a) the balance of the Participant’s Account on December 31, 2012, plus (b) all Bank matching contributions (as provided for in Section 4.5) attributable to Participant Contributions for any calendar year prior to 2013 (but only to the extent not already included pursuant to subsection(a)), plus (c) all Enhanced Benefit Contributions and Restoration Benefit Contributions attributable to the Participant’s compensation for any calendar year prior to 2013 (but only to the extent not already included pursuant to subsection(a)), plus (d) all adjustments and credits attributable to the foregoing, determined in the manner set forth in Article VI hereof.

2.43. “Qualified Vote” shall mean the Vote of at least sixty-five (65%) percent of the total number of Eligible Voters.

2.44. “Recordkeeper” shall mean such individual or entity as the Bank may retain consistent with the terms of this Plan and the Trust Agreement to maintain records of Participant Accounts pursuant to the terms of the Plan or any other person as the Trustee may select to make computations pursuant to any provision of the Trust Agreement.

2.45. “Restoration Benefit Contribution” shall mean with respect to an eligible Participant for a Plan Year three percent (3%) of such Participant’s Election Compensation earned in excess of the limitations under Section 401(a)(17) of the Code as reflected in the 401(k) Plan for such Plan Year.

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2.46. “Service Agreement” shall mean (a) the agreement entered into between the Bank and Putnam Fiduciary Trust Company effective as of October 3, 1994 entitled “PEOPLE’S BANK SUPPLEMENTAL SAVINGS PLAN Service Agreement” as such agreement may have been and may hereafter be amended, restated or replaced by a superseding agreement between the parties thereto and (b) such other agreement (including any amendment, restatement or replacement thereto) between the Bank and any other individual or entity as the Bank may retain consistent with the terms of the Plan and the Trust Agreement relating to the performance of services on behalf of the Bank or for the benefit of any Participant with respect to the administration or operation of the Plan, including the calculation or payment of any benefits pursuant thereto.

2.47. “STIP bonus” shall refer to payments made pursuant to the Bank’s Short- Term Incentive Plan and any plan or program which the Committee may determine is a replacement for such incentive plan and in no event shall STIP bonus include any payments under the Long-Term Incentive Plans presently maintained by the Bank or any replacement therefor.

2.48. “Super Qualified Vote” shall mean the Vote of at least eighty-five (85%) percent of the total number of Eligible Voters.

2.49. “Trust” shall mean the Trust established and maintained pursuant to the terms of Article IX hereof.

2.50. “Trustee” shall mean the entity then acting as Trustee under the Trust Agreement.

2.51. “Trust Agreement” shall mean the trust agreement described in Section 9.1 hereof.

2.52. “Vote” shall mean and include a vote in person or by proxy or execution of a written consent signed by a Participant or Beneficiary authorizing or approving any action (including one or more amendments of this Plan).

ARTICLE III

PARTICIPATION

3.1. Prior to January 1, 2005. Any person who was a Participant on or prior to October 4, 2004 shall remain a Participant. No person shall become a Participant after October 4, 2004 and prior to January 1, 2005.

3.2. Between January 1, 2005 and December 31, 2006. Any person who was not a Participant as of October 4, 2004, and who prior to December 31, 2006 was an employee of the

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Bank, had a salary grade equal to or higher than the Minimum Salary Grade, and in accordance with Interim Procedures 2005 or Interim Procedures 2006 elected to have salary deferrals made under the Plan of Election Compensation earned during 2005 or 2006 shall become a Participant as of the date of his first such deferral.

3.3. After December 31, 2006. On and after December 31, 2006 an employee of the Bank with a salary grade equal to or higher than the Minimum Salary Grade shall become a Participant: (a) for any Plan Year provided prior to the beginning of such Plan Year he has elected to make Participant Contributions of Election Compensation earned for such Plan Year; or (b) if he becomes an employee of the Bank with a salary grade equal to or higher than the Minimum Salary Grade during such Plan Year elects to make contributions from his Election Compensation earned during such Plan Year within thirty (30) days of his becoming an employee of the Bank with a salary grade equal to or higher than the Minimum Salary Grade.

3.4. Participation With Respect to Restoration Benefit Contributions.

(a) On or after August 14, 2006, an employee of the Bank with a salary grade equal to or higher than the Minimum Salary Grade who is not entitled after August 13, 2006 to accrue credited service under the Retirement Plan shall become a Participant with respect to, or, if the employee is already a Participant in the Plan, shall become eligible to receive, Restoration Benefit Contributions in accordance with Section 4.6.

(b) For the avoidance of doubt, for the period beginning August 14, 2006 through December 31, 2011 the terms of subsection (a) of this Section 3.4 are to be interpreted so that a Participant who is eligible to accrue a benefit under the Retirement Plan and who continues to accrue credited service thereunder will not be eligible to receive Restoration Benefit Contributions under this Plan.

(c) For Plan Years beginning on and after January 1, 2012, upon the cessation of benefit accruals under the People’s United Bank Employees’ Retirement Plan, the terms of subsection (a) of this Section 3.4 apply to all employees of the Bank who have a salary grade equal to or higher than the Minimum Salary Grade (whether hired before, on or after August 14, 2006).

3.5. Participation With Respect to Enhanced Benefit Contributions. On or after August 14, 2006, an employee of the Bank with a salary grade equal to or higher than the Minimum Salary Grade who either (i) was hired by the Bank after August 13, 2006 or (ii) first attained a salary grade equal to or higher than the Minimum Salary Grade after March 1, 2008 shall become a Participant with respect to, or, if the employee is already a Participant in the Plan, shall become eligible to receive, Enhanced Benefit Contributions in accordance with Section 4.7. For the avoidance of doubt, this provision is to be interpreted so that a Participant who is eligible to accrue a benefit under the People’s United Bank Enhanced Senior Pension Plan will not be eligible to receive Enhanced Benefit Contributions under this Plan. Effective for Plan Years beginning on or after January 1, 2012, Enhanced Benefit Contributions will no longer be made to the Plan.

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3.6. Termination of Participation. A Participant shall remain such until all of his benefits under the Plan have been distributed to him or, if earlier, his death.

ARTICLE IV

CONTRIBUTIONS

4.1. Participant Contributions from Compensation Prior to January 1, 2005

Any Participant who was such at any time prior to January 1, 2005 was entitled to elect to contribute as of each payroll date up to a total of 15% of his Election Compensation on such payroll date (less his employee contributions to the 401(k) Plan made on such date) provided such election was made in accordance with procedures then in effect under the Plan and the 401(k) Plan.

4.2. Participant Contributions from Compensation Earned or Paid During 2005 or 2006.

(a) Any Participant who was such at any time during 2005 may elect to contribute as of each payroll date during such Plan Year up to a total of 15% of his Election Compensation payable on such payroll date (less his employee contributions to the 401(k) Plan made on such date) provided such election was made in accordance with the Interim 2005 Procedures.

(b) Any Participant who was such at any time during 2006 may elect to contribute as of each payroll date during such Plan Year up to a total of 15% of his Election Compensation payable on such payroll date (less his employee contributions to the 401(k) Plan made on such date) provided such election was made in accordance with the Interim 2006 Procedures.

4.3. Participant Contributions From Election Compensation After 2006.

(a) A Participant may elect to contribute to the Plan up to twenty percent (20%) of his Election Compensation for any Plan Year beginning after December 31, 2006 and prior to January 1, 2009, provided he does so by filing an irrevocable written election during designated periods of the prior Plan Year in accordance with instructions authorized by the Committee. Such election may designate separate percentages with respect to STIP bonuses and other Election Compensation, but neither such election shall exceed twenty percent (20%).

(b) A Participant may elect to contribute to the Plan up to fifty percent (50%) of his Election Compensation for any Plan Year beginning after December 31, 2008, provided he does so by filing an irrevocable written election during designated periods of the prior Plan Year in accordance with instructions authorized by the Committee. Such election may designate separate percentages with respect to STIP bonuses and the other Election Compensation, but neither such election shall exceed fifty percent (50%).

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4.4. Contributions by New Participants; Special Rule for First Day of Plan Year.

(a) Any employee of the Bank who first becomes eligible to be a Participant during a Plan Year and who becomes a Participant in accordance with the provisions of Section 3.3 for a partial Plan Year may elect to contribute to the Plan up to (i) if such Plan Year is 2007 or 2008, twenty percent (20%) of his Election Compensation for such Plan Year provided such election is made prior to the end of thirty (30) days after he becomes eligible to become a Participant and (ii) if such Plan Year is 2009 or later, fifty percent (50%) of his Election Compensation for such Plan Year provided such election is made prior to the end of thirty (30) days after he becomes eligible to become a Participant.

(b) Beginning with the 2009 Plan Year, any employee of an affiliate of the Bank who is expected to become eligible to be a Participant on the first day of a Plan Year may elect to contribute to the Plan up to fifty percent (50%) of his Election Compensation for such Plan Year provided such election is made prior to the end of the preceding Plan Year. An election made pursuant to this subsection (b) shall not take effect and shall be disregarded for all purposes if the individual making such election does not, in fact, become eligible to be a Participant in the Plan as of the first day of the Plan Year for which such election was made.

4.5. Bank Matching Contributions.

(a) As soon as practicable at or after the end of each Plan Year the Bank shall determine for such Plan Year for each Participant his Election Match Compensation and his 401(k) Maximum Basic Employer Contribution. In the case of a Participant whose employment terminates prior to the end of a Plan Year, the Bank shall determine the Election Match Compensation and the 401(k) Maximum Basic Employer Contribution for such Participant for that portion of the Plan Year during which the Participant was employed, as soon as practicable at or after the date the Participant’s employment was terminated.

(b) Within a reasonable time after such determination the Bank shall credit to the (i) Current Plan Account in the case of Plan Years ending after December 31, 2003 and prior to December 1, 2008 and (ii) Deferral Account in the case of Plan Years ending on or after December 1, 2008 of each Participant a matching contribution equal to the result obtained by subtracting such Participant’s 401(k) Maximum Basic Employer Contribution from the sum of (A) the lesser of (x) 4% of such Participant’s Basic Election Match Compensation or (y) such Participant’s Participant contributions pursuant to this Article IV for such Plan Year with respect to his Basic Election Match Compensation, plus (B) the lesser of (x) 4% of such Participant’s STIP Election Match Compensation or (y) such Participant’s Participant Contributions pursuant to this Article

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IV for such Plan Year with respect to his STIP Election Match Compensation; provided, however, that such matching contribution shall not be less than zero. For purposes of this subsection (b), the term “Basic Election Match Compensation” means the Participant’s Election Match Compensation for the Plan Year excluding any STIP bonus actually received during such year; and the term “STIP Election Match Compensation” means the Participant’s Election Match Compensation excluding his Basic Election Match Compensation.

(c) In the event the Bank determines to make a discretionary contribution, as soon as practical after both completing the computations pursuant to subsection (a) of this Section and determining to make a discretionary contribution, the Bank shall credit to the (i) Current Plan Account in the case of Plan Years ending after December 31, 2003 and prior to December 1, 2008 and (ii) Deferral Account in the case of Plan Years ending on or after December 1, 2008 of each Participant who has deferred any Election Match Compensation hereunder during such Plan Year an amount equal to up to one hundred percent (100%) of such Participant’s contribution for such Plan Year pursuant to this Article IV to the extent that such Participant’s Participant Contributions exceeded four percent (4%) of his Election Match Compensation but did not exceed five percent (5%) of his Election Match Compensation for such Plan Year reduced by such Participant’s 401(k) Maximum Discretionary Employer Contribution for such Plan Year; provided that such matching contribution shall not be less than zero; and further provided that such matching contribution shall be made only if the Participant is actively employed by the Bank at the end of the Plan Year with respect to which such matching contribution would otherwise be made. Notwithstanding the foregoing, no Discretionary Matching Employer Contribution shall be made to the Plan for any Plan Year beginning on or after January 1, 2012.

(d) A Participant shall become vested in matching contributions made to his Account pursuant to this Section 4.5 with respect to Plan Years beginning on or after January 1, 2015 upon the earliest to occur of (i) completion of one year of Credited Service, (ii) attainment of his Normal Retirement Date, or (iii) his death.

4.6. Restoration Benefit Contributions

(a) On and after August 14, 2006, the Bank shall credit to the Deferral Account of each eligible Participant who is actively employed by the Bank at the end of the applicable Plan Year a Restoration Benefit Contribution as soon as practicable following the end of the Plan Year with respect to which such contribution is to be made. In order to be eligible to begin receiving Restoration Benefit Contributions, a Participant must have completed one “Year of Employer Retirement Contribution Eligibility Service” as defined under the 401(k) Plan.

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(b) A Participant shall become vested in his or her Restoration Benefit Contributions according to the following vesting schedule

Years of Credited Service	Vested Percentage
Less than 2		None
2		25	%
3		50	%
4		75	%
5 or more		100	%

Notwithstanding the foregoing, the Participant shall become fully vested in his Restoration Benefit Contributions upon the earlier of his death or attainment of his Normal Retirement Date.

4.7. Enhanced Benefit Contributions

(a) On and after August 14, 2006, through the Plan Year ended December 31, 2011, the Bank shall credit Enhanced Benefit Contributions to the Deferral Account of each employee of the Bank with a salary grade equal to or higher than the Minimum Salary Grade who (i) was hired by the Bank after August 13, 2006, or (ii) first attained a salary grade equal to or higher than the Minimum Salary Grade after March 1, 2008, provided, in both cases, the employee was actively employed by the Bank at the end of the applicable Plan Year. In order to be eligible to begin receiving Enhanced Benefit Contributions, the Participant must have completed one “Year of Employer Retirement Contribution Eligibility Service” as defined under the 401(k) Plan and only Election Match Compensation received the first day of the month after satisfaction of the service requirement was considered for that Plan Year. No Enhanced Benefit Contributions will be made for Plan Years beginning January 1, 2012, and after.

(b) A Participant shall become fully vested while in Credited Service in his Enhanced Benefit Contributions upon the earliest of (A), (B) or (C), where (A) is the later of (i) the attainment of age fifty-five (55), or (ii) the completion of 5 Years of Vesting Service; (B) is the Participant’s death, and (C) is his attainment of his Normal Retirement Date. In the event a Participant’s Credited Service is terminated prior to his being so vested, his Enhanced Benefit Contributions under this Plan shall be forfeited; provided that, in the event of his rehire and his subsequently becoming vested, his Enhanced Benefit Contributions shall be reinstated and he shall become vested therein.

4.8. FICA Offset Contribution. (a) No later than June 30, 2016, the Bank shall credit the FICA Offset Contribution to the Deferral Account of each Participant (i) whose Account was credited with an Enhanced Benefit Contribution and/or a Restoration Benefit Contribution during one or more of the Plan Years ended December 31, 2007 through December 31, 2014 and (ii) who is actively employed by the Bank or any of its affiliates on

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the date the FICA Offset Contribution is actually credited. No other Participant shall be entitled to receive a FICA Offset Contribution. The amount of the FICA Offset Contribution is an estimate based on (x) an assumed annual rate of return of 4% on Participant’s Account balance from December 31, 2014 through the Participant’s Normal Retirement Date, and (y) a federal employment tax rate of 2.35% which is equal to the Medicare (HI) plus the Additional Medicare Tax portion of taxes imposed by the Federal Insurance Contributions Act (FICA) as of the date the FICA Offset Contribution is to be made.

(b) A Participant shall become vested in the FICA Offset Contribution at the time such contribution is credited to the Participant’s Deferral Account.

4.9 Operating Rules

For purposes of this Article IV

(a) any compensation earned during the Bank’s payroll period (as described in Section 3401(b) of the Code) which includes the last day of such Plan Year payable after the end of such Plan Year in accordance with arrangements by which the Bank normally pays its employees shall be considered Election Compensation for the Plan Year in which it is payable; and

(b) any other compensation earned during a Plan Year and paid in a subsequent Plan Year shall be considered Election Compensation during the Plan Year in which it is earned; and

(c) each election percentage shall be a whole number.

ARTICLE V

ACCOUNTS

5.1. Grandfathered Accounts. As of December 31, 2004 the balances of the accounts of all Participants were determined and each such account shall be maintained from such date through November 30, 2008 as a separate Grandfathered Account and all investment results from such date allocable thereto in accordance with the provisions of Article VI shall be credited thereto.

5.2. Current Plan Accounts. The Bank shall maintain for each Participant who is such on or after January 1, 2005 and prior to December 1, 2008 a Current Plan Account to which all such Participant’s (i) Participant Contributions made on or after January 1, 2005 and prior to December 1, 2008, (ii) Bank matching contributions (as provided for in Section 4.5) made on or after January 1, 2005 and prior to December 1, 2008, (iii) Restoration Benefit Contributions made on or after January 1, 2008 and prior to December 1, 2008 and (iv) Enhanced Benefit Contributions made on or after January 1, 2008 and prior to December 1, 2008, and all investment results from the applicable dates allocable thereto in accordance with the provisions of Article VI shall be credited.

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5.3. Time of Crediting Contributions. After December 31, 2004 and prior to December 1, 2008, all Participant Contributions shall be withheld from such Participant’s pay for each payroll date and shall be credited to such Participant’s Current Plan Account as of or as soon as practicable after such date. On and after December 1, 2008, all Participant Contributions shall instead be allocated to such Participant’s Deferral Account. All Bank matching contributions (as provided for in Section 4.5) allocable after January 1, 2005 and prior to December 1, 2008 shall be allocated to the Participant’s Current Plan Account as of the date provided for in accordance with the terms and administrative procedures of this Plan in effect from time to time during such period. All Bank matching contributions (as provided for in Section 4.5) allocable on and after December 1, 2008 shall be credited as of the date determined in accordance with the provisions of Section 4.5. Restoration Benefit Contributions, Enhanced Benefit Contributions and the FICA Offset Contribution shall be credited as of the date determined in accordance with the provisions of Sections 4.6, 4.7 and 4.8, respectively.

ARTICLE VI

HYPOTHETICAL INVESTMENT

6.1. Adjustments Prior to the Interest Credit Date to Pre-June 1, 2008 Accounts. Except as provided by Section 6.2, to the extent practicable under procedures available to the Bank, all amounts credited to an Account of a Participant who became such on or before June 1, 2008, shall be increased or decreased prior to the Interest Credit Date in accordance with such Participant’s investment election under the 401(k) Plan to reflect the value such amount would have if actually so invested as such elections change from time to time prior to June 1, 2008, but not as changed on or after such date. In the event such Participant has different elections under the 401(k) Plan with respect to a balance accumulated as of a certain time on the one hand and contributions received thereafter on the other, to the extent practicable under procedures available to the Bank, such Participant’s Account shall be deemed to be invested (a) with respect to the balance as of the date of the accumulation described in this sentence in accordance with the investment instructions for such accumulated balance and (b) with respect to amounts credited to his Account after such date in accordance with the investment instructions for such contributions. Notwithstanding the foregoing, in the event the Participant has any loan balances outstanding with respect to his account under the 401(k) Plan, the amount of such loans shall not be taken into account in determining the proportions in which his Account is deemed to be invested.

6.2. Investment Selections for Accounts on and After June 1, 2008 and Prior to the Interest Credit Date.

(a) All amounts credited to any Account of a Participant who first becomes such on and after June 1, 2008, and all amounts credited to any Account of a Participant who

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became such before June 1, 2008 and who chooses to make an investment election pursuant to this subsection (a) prior to the Interest Credit Date shall in accordance with procedures made available to him by the Bank be increased or decreased in accordance with such Participant’s investment election under this Plan to reflect the value such amount would have if actually invested in accordance with such election. Such Participant’s election under the Plan shall be limited to investment selections available to Participants under the 401(k) Plan at the time of such election. Such Participants shall be able to make separate elections with respect to accumulated Account balances and amounts to be credited to such Accounts after such election. To the extent any portion (including all) of the Account of any Participant who becomes such on or after June 1, 2008 and prior to the Interest Credit Date, is not the subject of an investment election, such portion of such Account shall be increased or decreased as if it were actually invested in the T. Rowe Price Retirement Fund available under the Plan that under procedures established by the Plan’s third party administrator most closely matches the date on which the Participant is projected to attain his Normal Retirement Date or where provided under such procedures, to the T. Rowe Price Retirement Income Fund. Investment selections in effect for Account balances and amounts to be credited in the future to such Accounts as of June 1, 2008 or any time thereafter and prior to the Interest Credit Date shall remain in effect until such Participant expressly otherwise directs and regardless of any change in investment directions such Participant makes with respect to his 401(k) accounts.

(b) On and after June 1, 2008 and prior to the Interest Credit Date, all amounts credited to an Account of a Participant who became such before June 1, 2008, shall be increased or decreased in accordance with such Participant’s investment election under the 401(k) Plan as of May 31, 2008 or as otherwise provided pursuant to the provisions of the Plan as of May 31, 2008, to reflect the value such amount would have if actually invested in accordance with that election except to the extent such Participant elects different hypothetical investments in accordance with the provisions of subsection (a) of this Section. No change in investment directions under the 401(k) Plan becoming effective on or after June 1, 2008, shall have any effect on adjustments to a Participant’s Account under this Plan.

6.3. Adjustments on or After the Interest Credit Date.

(a) All Accounts of any Participant who becomes such on or after the Interest Credit Date, and that portion of a Participant’s Account which is attributable to contributions made by on or on behalf of a Participant on or after the Interest Credit Date, shall not be adjusted in accordance with the provisions of Section 6.1 or 6.2, but instead shall be credited with Plan Interest monthly.

(b) Accounts of all Participants who are such as of the Interest Credit Date shall continue to be adjusted in accordance with the provisions of Section 6.2 based in all respects upon such Participants’ investment elections and any other applicable provisions of Section 6.2 as in effect on the Interest Credit Date provided that (i) except as provided below in this Section, no Participant shall after the Interest Credit Date have the right to change investment elections and (ii) any Participant may at any time in a manner provided by the Bank elect to have all (but not

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less than all) balances of such Participant’s Account credited with Plan Interest after the date of such election in lieu of any amounts otherwise determinable under Section 6.2. Any such election shall become effective at such time as the Bank shall determine to be administratively convenient. Notwithstanding the foregoing, in the event that any time after January 1, 2009 any part of a Participant’s Account is deemed to be hypothetically invested in shares of Parent stock, any hypothetical dividend paid with respect to such stock to such Account shall be deemed invested in the Putnam Stable Value Fund or in such other manner as the CEO may determine upon recommendation of the Administrative Committee. Notwithstanding the foregoing provisions of this Section 6.3, any Participant whose Credited Service is terminated prior to December 1, 2008 and who has not made an election pursuant to clause (ii) of this Section 6.3(b) may continue to change hypothetical investments in accordance with the provisions of Section 6.2.

(c) On and after December 1, 2012, all balances in a Participant’s Account shall be credited with Plan Interest in lieu of any amounts otherwise determinable under Section 6.2 and regardless of whether such Participant has made an election pursuant to subsection (b)(ii) above.

ARTICLE VII

DEATH BENEFITS

7.1. Beneficiaries. In the event the death of a Participant whether during or after termination of his Credited Service, prior to payment of such Participant’s full vested Account balance benefit in accordance with the provisions of Article VIII, the unpaid vested amount shall be paid to such Participant’s Beneficiary designated in a form provided by, and filed with, the Committee. If no such form has been filed, such benefits shall be payable to such Participant’s spouse and if no spouse is then living, to the legal representative of such Participant’s estate. All benefits payable pursuant to this Article VII shall be payable in accordance with the provisions of Article VIII. In the event a Participant and his spouse or other designated Beneficiary (primary or contingent) die as a result of the same event (whether or not it is possible to determine who was the first to die) and die within thirty (30) days of each other, this Plan shall be administered as if the Participant survived his spouse or such other Beneficiary.

7.2. No Other Death Benefits. Except as provided in this Article VII, no benefits under this Plan shall be payable to a Participant’s Beneficiary after such Participant’s death.

ARTICLE VIII

METHOD OF PAYMENT

8.1. Distribution of Current Plan Account Relating to Participant Contributions and Bank Matching Contributions. The portion of a Participant’s Current Plan Account relating to Participant Contributions and/or Bank matching contributions (as provided for in Section 4.5)

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shall be distributed to such Participant as follows. The balance of such portion of the Participant’s Current Plan Account shall be determined as of the end of the month preceding his last full month of Credited Service. An amount equal to ten percent of such account balance shall be distributed in twelve equal monthly installments commencing on the first payroll payment date of the 7^th month following such termination and of each of the next 11 months. As of the first payroll date of the twelfth month following such commencement of payments, the portion of the full balance of such Participant’s account (determined as of the most recent available valuation date under the 401(k) Plan preceding such payment date) shall be distributed to such Participant or in the event of her or his death, to her or his Beneficiary.

8.2. Distribution of Current Plan Account Relating to Restoration Benefit Contributions and Enhanced Benefit Contributions. On and after January 1, 2008, the vested portion of a Participant’s Current Plan Account relating to Restoration Benefit Contributions and/or Enhanced Benefit Contributions shall be distributed to such Participant in a single lump sum payment on the first payroll payment date of the 7th month following the Participant’s termination of Credited Service with the Bank.

8.3. Distributions of Grandfathered Accounts to Participants. A Participant’s Grandfathered Account shall be valued and distributed in the same manner as the portion of the Participant’s Current Plan Account relating to Participant Contributions and Bank matching contributions (as provided for in Section 4.5), except that installment payments shall commence as of the first payroll date of the month next following such Participant’s termination of Credited Service and continue for an additional 11 months. As of the first payroll date of the twelfth month following such commencement of payments, the full balance of such Participant’s account (determined as of the most recent available valuation date under the 401(k) Plan preceding such payment date) shall be distributed to such Participant or in the event of her or his death, to her or his Beneficiary.

8.4. Distribution of Accounts After December 1, 2008.

(a) The foregoing provisions of this Article VIII shall not apply to any distributions made to any Participant who terminates his Credited Service at any time on or after December 1, 2008.

(b) Unless the Participant makes an effective election pursuant to Section 8.6 hereof with respect to his Pre-2013 Account, the total Pre-2013 Account balance of any Participant who terminates his Credited Service on or after December 31, 2008 shall be distributed to him in a single lump sum as soon as administratively practicable during the seventh month following such termination, and if he is not then living, such total Pre-2013 Account balance shall be distributed to his Beneficiary in a single lump-sum as soon as administratively practicable following such Participant’s death. Amounts distributable pursuant to this Section 8.4(b) shall be determined in accordance with the provisions of Section 8.7 hereof.

8.5 Distribution of Post-2012 Account Balances. A Participant’s vested Annual Post-2012 Subaccount balance shall be payable following the termination of the Participant’s Credited

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Service as described in subsections (a) and (b) below based on the Participant’s election made with respect to a given Annual Post-2012 Subaccount balance pursuant to administrative procedures as established by the Committee.

(a) Timing of Payment. Subject to Section 8.6, a Participant’s vested Annual Post-2012 Subaccount balance attributable to a given calendar year shall be paid to a Participant on one of the following dates based on the form of payment elected by Participant with respect to such year:

(i) in the case of a lump sum payment, as soon as administratively practicable during the seventh month following termination of the Participant’s Credited Service; or

(ii) in the case of installment payments, the first such payment shall be made on the later of (x) the first administratively practicable date during the seventh month following termination of the Participant’s Credited Service or (y) the first administratively practicable date in the month of February following termination of the Participant’s Credited Service, with each subsequent installment being payable on the first administratively practicable date in February of each subsequent year.

(iii) Notwithstanding the foregoing, in the event the Participant dies prior to receiving payment of some or all of his Post-2012 Account balance, the entire unpaid amount of the Participant’s Post-2012 Account balance shall be paid to the Participant’s Beneficiary in a single lump sum on the first administratively practicable date following the date of the Participant’s death. Amounts distributable pursuant to this Section 8.5(a)(iii) shall be determined in accordance with the provisions of Section 8.7 hereof.

(b) Form of Payment. A Participant shall, on an annual basis, elect the form of payment in which his Annual Post-2012 Subaccount balance shall be paid. A Participant may make a different election with respect to each Annual Post-2012 Subaccount balance; provided, however, that such election must be made prior to the commencement of the calendar year pertaining to a given Annual Post-2012 Subaccount. Participants may elect to have benefits paid in one of the following forms of payment:

(i) a single lump sum; or

(ii) five annual installments; or

(iii) ten annual installments.

Amounts distributable pursuant to this Section 8.5(b) shall be determined in accordance with the provisions of Section 8.7 hereof.

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If no election is made with respect to a given Annual Post-2012 Subaccount, the Participant shall be deemed to have elected to receive payment of such subaccount balance in a lump sum.

8.6 New Election for Pre-2013 Account; Change in Election for Annual Post-2012 Subaccounts. Notwithstanding any provision to the contrary elsewhere in this Plan, and subject to the following paragraph, a Participant may (x) make an installment payment election regarding his Pre-2013 Account balance (and, in such event, the Participant’s Pre-2013 Account shall be treated as though it were a single Annual Post-2012 Subaccount for purposes of Section 8.5 hereof) and (y) change his distribution election with respect to a given Annual Post-2012 Subaccount to elect another form of payment or a different number of installments. Any such installment payment election or change of election (each, a “subsequent election”) shall be made in accordance with election procedures established by the Committee and shall be subject in all cases to the requirements of subsection (a) and (b) below and other provision of this Article. If such election becomes effective as provided below, then that portion of the Participant’s Account as is affected by such election (i.e., his Pre-2013 Account and one or more Annual Post-2012 Subaccounts) will be payable at the time and in the form specified in his subsequent election.

The Participant’s subsequent election under this Section will become effective only if the following criteria are satisfied: (a) the election does not become effective until one year after the date the election is made; and (b) the election extends the date for payment, or the start date for installment payments, by at least five years from the previously elected date (or other applicable date, in the case of a Participant’s Pre-2013 Account). No subsequent election may be made with respect to any portion of a Participant’s Account that is already in payment status.

No subsequent election under the preceding paragraph may operate to accelerate any payment or distribution hereunder or violate any requirement of Code Section 409A or the regulations and rulings thereunder. Installment payments to a Participant will be deemed a single payment for purposes of the anti-acceleration rule under Code Section 409A(a)(3) and the rules governing the timing of changes in elections with respect to the time and form of payment hereunder pursuant to Code Section 409A(a)(4).

8.7. Valuation of Accounts. For purposes of determining the amount payable to a Participant (or his or her beneficiaries) on a given distribution date, the value of the Participant’s Account or any Subaccount thereof shall be determined on a date as close as administratively practicable to the applicable distribution date. In the case of an installment payment election, the amount to be distributed on the initial payment date with respect to a given Annual Post-2012 Subaccount shall be equal to (1) the balance of the Participant’s Annual Post-2012 Subaccount for the applicable year determined as set forth above, divided by (2) the number of installments elected. The amount of each subsequent installment payment shall be equal to (3) the unpaid balance of the applicable Annual Post-2012 Subaccount determined as set forth above, divided by (4) the remaining number of installment payments to be made, except that the final installment payment shall be equal to the unpaid balance of the applicable Annual Post-2012 Subaccount on a date as close as administratively practicable to the final payment date.

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Adjustments and credits attributable to the unpaid balance of any Annual Post-2012 Subaccount shall continue to accrue determined in the manner set forth in Article VI hereof.

ARTICLE IX

TRUST; CHANGE IN CONTROL

9.1. Non-Qualified Trust. The Bank has entered into a Trust Agreement with an independent third party acting as the Trustee establishing the Trust. The Trust is intended to provide for the funding of the Bank’s obligation to provide benefits under the Plan to the extent provided pursuant to the provisions of Sections 9.2 and 9.3. In the event of Insolvency of the Bank, assets held under the Trust shall be subject to the claims of the general creditors of the Bank under federal and state law as set forth in the Trust Agreement. In the event of such Insolvency, any and all such assets will be available to satisfy the claims of general creditors of the Bank even if all benefits under the Plan have not otherwise been provided for and even if all such benefits of Participants who have terminated their Credited Service have not been fully provided for. Nothing herein shall be deemed to prohibit Participants or Beneficiaries from asserting claims for Plan benefits as general creditors of the Bank. The Bank may cause, subject to, and in accordance with, the terms of the Trust Agreement, Plan benefits to be provided from the assets of the Trust, the general assets of the Bank, or a combination thereof, as the Bank may determine to be in the Bank’s best interests. No person eligible for, or entitled to, Plan benefits hereunder shall have any property, equitable or security rights in any specific assets of the Bank or held as part of the Trust. The Plan constitutes a mere promise by the Bank to make benefit payments in the future. It is intended that this Plan be unfunded for federal income tax purposes and Title I of the Employee Retirement Income Security Act of 1974, as amended. The obligation to pay all Plan benefits shall be treated as an item of indebtedness by the Bank to the Participant or Beneficiary, and except as otherwise paid from the Trust, such payments shall be made from the general assets of the Bank. All amounts as may be required to be withheld by any applicable federal, state or local law shall be withheld and remitted as required by any such law and payments made to the Participant or any Beneficiary shall be the net amount after withholding.

9.2. Discretionary Payments to Trust. The Bank, in the sole discretion of the CEO, may at any time, or from time to time, make deposits (in addition to those required pursuant to Section 9.3) of cash or other property acceptable to the Trustee in trust with the Trustee to augment the principal of the Trust, such additions to be held, administered and disposed of by the Trustee as provided in the agreement setting forth the terms of the Trust. Neither the Trustee nor any Participant or Beneficiary shall have any right to compel such additional deposits.

9.3. Mandatory Payments to Trust.

(a) Upon a Potential Change in Control or a Change in Control, the Bank shall, as soon as possible, but in no event longer than thirty (30) days following such Potential Change in Control or Change in Control, make a contribution to the Trust of cash or other

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property acceptable to the Trustee which when added to the total value of the Trust Fund would equal the Full Funding Amount. In the event of a Potential Change in Control, the Full Funding Amount shall be recalculated in the event such Potential Change in Control Period extends beyond the required valuation date used in the first or other last subsequent computation made as a result of such Potential Change in Control Period. In the event that the Trustee later determines that provision made in determining the Full Funding Amount for expenses was not adequate, the Bank shall make additional deposits to provide for such expenses as determined by the Trustee from time to time.

(b) No more than sixty (60) days after the last day of each fiscal year of the Bank, the Bank shall:

(i) Cause the Recordkeeper to compute the Interim Funding Amount as of such last day and deliver to the Trustee the Recordkeeper’s certification or other written statement satisfactory to the Trustee of such Interim Funding Amount; and

(ii) Pay to the Trustee an amount which when added to the value of the Trust Fund as of such last day would result in a sum equal to or greater than such Interim Funding Amount.

ARTICLE X

NONASSIGNABILITY

10.1. No Assignment. The Plan is designed to provide payment of benefits solely for the support of the Participant and, to the extent of any death benefits, such Participant’s beneficiary. No person eligible for or entitled to a benefit payable hereunder shall have any right, power or authority to anticipate, assign, sell, transfer, pledge or otherwise encumber, whether by voluntary action or by operation of law, the right to receive such benefit payment nor shall such right otherwise be subject to encumbrance, attachment or garnishment by creditors of the Participant or the Participant’s Beneficiary.

ARTICLE XI

ADMINISTRATION

11.1. The Committee. The Plan shall be administered by the Committee. The Committee may delegate its administrative authority to officers or other employees of the Bank, provided that no such delegate shall determine his own benefits hereunder. The Committee shall have complete and discretionary authority to determine eligibility, the amount of benefits payable under the Plan and to otherwise construe, interpret and apply the provisions of the Plan and its determinations shall be conclusive on the Bank, its employees and any other person claiming any benefit under the Plan. Notwithstanding the foregoing provisions of this Article XI, any determination made by the Committee upon or after a Change in Control or during a Potential Change in Control Period shall be binding only if accepted by the Participant or Beneficiary and, to the extent not so accepted, such determination of the Committee shall be of no effect and given no weight and such Participant or Beneficiary shall have his rights determined in accordance with the procedures of any of the provisions of the Trust Agreement, and the Bank shall pay to the Trustee any funds necessary to provide such benefits as so determined.

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ARTICLE XII

CLAIMS PROCEDURE

12.1 General.

(a) If a Participant, Former Participant or Beneficiary disagrees with the computation of the benefits to which he is entitled under the Plan and wishes to claim benefits or additional benefits, he must file his claim in writing or electronically with the Committee. The Committee may act as the Claims Officer as hereinafter provided or may designate a member of the Committee or one or more other individuals who may (but shall not be required to) be a Participant or other Employee. If no claim is received by the Committee within 60 days after the claimant receives notice of his benefits, no claim will be permitted and the Claims Officer’s determination shall be final.

The claimant may designate any other person, at his own expense, to act on his behalf in pursuing a benefit claim or appealing the denial of a benefit claim. The term “claimant” as used in this claims procedure includes any other person he designates to represent him as well as after his death, his beneficiary.

When a claim for benefits is made under Plan, the Claims Officer is required to notify the claimant within 90 days after the claim is received if the claim for benefits has been denied. In special cases where the Claims Officer needs more time to decide, the Claims Officer may notify the claimant in writing or electronically prior to the end of the initial 90 day period and may take up to 90 additional days.

(b) If the claim is denied in whole or in part, the Claims Officer will send to the claimant a written or electronic notice including:

(i) one or more specific reasons for the denial;

(ii) specific reference to the Plan provisions on which the denial is based;

(iii) a description of any additional material or information that would be necessary to perfect the claim and an explanation of why such material or information is necessary;

(iv) information regarding what steps should be taken if the claimant wants to submit a request for review; and

(v) a description of the Plan’s review procedures and the time limits applicable to the procedures including a statement of the claimant’s rights to bring a civil action under Section 502(a) of ERISA following a determination upon completion of claimant’s appeal adverse to claimant’s position.

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(c) If the claim for benefits is denied, the claimant may file an appeal in writing or electronically with the Committee.

(i) The written claim for review must be filed within 60 days after the claimant has received the notice described above that the claim was denied. If a written claim for review is not filed within 60 days after the claimant receives the notice that the claim was denied, the claimant is deemed to have accepted the Claims Officer’s decision.

(ii) The claimant may submit written comments, documents, records and other information relating to claimant’s claim for benefits.

(iii) The claimant will be provided upon request and free of charge reasonable access to, and copies of, all documents, records, and other information relevant to claimant’s claim.

(iv) The Committee will take into account all comments, documents, records and other information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

(d) After receiving a request for review, the Committee will review the claim within 60 days and will give the claimant a written or electronic notice of its decision, which is final. In special cases where the Committee needs more time to decide, the Committee will notify the claimant in writing prior to the end of the initial 60 day period and may take up to 60 additional days. If the Committee denies the claim, the notice will include:

(i) one or more specific reasons for the denial;

(ii) specific reference to the Plan provisions on which the denial is based;

(iii) a statement that the claimant is entitled to receive upon request and free of charge reasonable access to, and copies of, all documents, records, and other information relevant to claimant’s claim for benefits; and

(iv) a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA.

(e) Notwithstanding any other provisions of this Plan to the contrary, the terms of Subsections (a), (b) and (c) of this Section 12.1 shall apply until such time as the Committee shall adopt revised claims procedures; provided, however, that the Committee may make any such revisions in such procedures as it deems necessary to assure compliance with the applicable provisions of Section 503 of the Act and the regulations thereunder.

25

(f) Any person whose claim has been denied in whole or in part must exhaust the administrative review procedures provided in this Section 12.1, including any revisions made in accordance with subsection (d) hereof prior to initiating any claim for judicial review.

(g) Any action taken or omitted by any fiduciary with respect to the Plan, including any decision, interpretation, claim denial or review on appeal, shall be conclusive and binding on all interested parties and shall be subject to judicial modification or reversal only to the extent it is determined by a court of competent jurisdiction that such action or omission was arbitrary and capricious and contrary to the terms of the Plan.

12.2. Change in Control. During a Potential Change in Control Period or upon or after a Change in Control, a Participant or Beneficiary at his election may determine at any time not to follow or to cease following the procedures set forth in this Article XII, and to assert and enforce any claims under the Plan without regard to the provisions of this Article XII, including enforcing any remedies in accordance with the provisions of the Trust Agreement.

ARTICLE XIII

AMENDMENT AND TERMINATION

13.1. General. The Committee may amend the Plan from time to time; provided, however, that no such amendment shall have the effect of reducing any vested benefit under the Plan.

13.2. Change in Control. Notwithstanding the provisions of Section 13.1, (a) an amendment to Section 9.3(a) hereof, or to the definitions of Change in Control, Potential Change in Control, Potential Change in Control Period or Change in Control Agreement, or eliminating or reducing the rights or authority of the Advisory Committee provided by Article XV hereof may be made only in the event it is approved by a Qualified Vote and (b) an amendment to reduce the funding requirements pursuant to Section 9.3(b) or changing the definition of Interim Funding Amount or Interim Valuation Requirement Date may be made only in the event it is approved by the vote of sixty-five percent (65%) of all Participants who are employed by the Bank after May 1, 1998, and not employed by the Bank at the time of such vote.

13.3. Termination. The Bank reserves the right to terminate the Plan or to cease benefit accruals under the Plan at any time. However, except as may be required pursuant to any applicable federal, state or local law, any Plan benefit then accrued and vested shall remain payable in accordance with the terms of the Plan to the extent then accrued.

26

ARTICLE XIV

CONSTRUCTION

14.1. Governing Law. The Plan shall be administered in accordance with the laws of Connecticut, to the extent applicable, and not preempted by any other applicable federal law.

14.2. No Contract. Nothing in the Plan shall be construed to confer upon any person any legal right to be continued as an employee of the Bank. The Bank expressly reserves the right to discharge any employee whenever the interest of the Bank in its sole judgment may so require without any liability on the part of the Bank. The Bank shall be the Plan Administrator of the Plan.

14.3. FDIC Restrictions. It is intended that the Plan be and remain a bona fide deferred compensation plan for purposes of Section 18(k) of the Federal Deposit Insurance Act and Part 359 of Federal Deposit Insurance Corporation (“FDIC”) regulations, including FDIC Reg § 359.1(d) and the terms of the Plan shall be so construed in the event of any ambiguity.

14.4. Other Contracts. The benefits payable under the Plan shall not be limited by the provisions of any other agreement entered into by the Bank and any Participant prior to January 1, 2009 relating to payments in the event of Change in Control; but benefits under any such other agreement may, if such other agreement so provides, be reduced as a result of benefits payable under the Plan.

14.5. Successors and Assigns. The provisions of this Plan shall be binding upon and inure to the benefit of the Bank and its successors and assigns, and references to the Bank herein shall include its successors and assigns. References to Parent shall include its successors and assigns.

14.6. Pronouns. Unless the context clearly indicates otherwise, pronouns of one gender or number may refer to subjects or objects of a different gender or number.

14.7. Code Section 409A. From and after October 4, 2004 this Plan is intended to meet the requirements of Section 409A of the Code and shall be construed whenever possible in a manner which will result in the Plan being and the Trust being in compliance therewith and which will not subject any Participant to any additional taxes or penalties pursuant to such Section 409A.

14.8. Headings. The headings of Articles and Sections are included solely for convenience of reference. If there is any conflict between such headings and the text of the Plan, the text shall control.

27

ARTICLE XV

ADVISORY COMMITTEE

15.1. Advisory Committee. During a Potential Change in Control Period or upon or after a Change in Control, a majority of Plan Voters at any time, and from time to time, may appoint an Advisory Committee to monitor and represent the interests of the Plan Voters and the Beneficiary of any deceased Participant with respect to the Plan, and the Trust. The Advisory Committee shall be composed of one to three individuals, some or all of whom may (but none of whom shall be required to) be Plan Voters. The Advisory Committee shall act by majority vote unless it unanimously agrees otherwise and shall otherwise adopt its own procedures which may include authorizing one member thereof to act for the Advisory Committee. Any member of the Advisory Committee may resign by giving written notice to the other members thereof, or, if he is the sole member, to a majority or all of the then Plan Voters. Any member may be removed by action of a majority of Plan Voters, and additional members, including replacement of any resigned, removed or deceased member may be designated by action of a majority of Plan Voters. All actions by any Participant shall be in a writing signed by such Participant. A Participant may sign a single writing effectuating removal and replacement. For purposes of this Article XV, the term “Plan Voters” shall mean each individual who is an employee of the Bank after May 1, 1998 and who is a Participant in this Plan; but excluding (a) after a Change in Control any person who was not a Plan Voter prior to the earlier of such Change in Control or the beginning of the Potential Change in Control Period ending with such Change in Control and (b) during a Potential Change in Control Period any person not a Plan Voter prior to the beginning thereof. For purposes of this Article XV, the term “Plan Voter” shall mean at anytime all individuals who were employed at the Bank after January 1, 2009 and who are Participants exclusive of (i) after a Change in Control any person who was not a Plan Voter prior to the earlier of such Change in Control or the beginning of the Potential Change in Control Period ending with such Change in Control and (ii) during a Potential Change in Control Period any person not a Plan Voter prior to the beginning thereof.

15.2. Purpose and Duties. The purpose of the Advisory Committee shall be to disseminate information concerning the Plan, and the Trust to Plan Voters and Beneficiaries of deceased Plan Voters, to gather information and data concerning, and otherwise investigate, inquiries, controversies, or disputes deemed reasonable by the Advisory Committee and raised by any Participant or any such Beneficiary, to discuss such matters with the CEO of the Bank or members of the Board, or of the Human Resources Committee of the Board, the Actuary or the Trustee, and to take any action authorized under the Trust Agreement with respect to any such inquiries, controversy or dispute which it, in its discretion, deems reasonable to protect the legitimate interest of any Participant or Beneficiary, and monitor and report to Plan Voters and Beneficiaries of deceased Plan Voter with respect to litigation or arbitration proceedings under the Plan. The Advisory Committee may (but shall not be required to) negotiate on behalf of any Plan Voter or Beneficiary of a deceased Plan Voter; provided, however, that in no event shall the Advisory Committee be deemed authorized to institute any legal or arbitration proceedings hereunder or enter into any agreement purporting to settle or limit the rights of any Participant or Beneficiary under the Plan or in or to the Trust or its assets. Nothing herein shall prohibit a

28

Participant or Beneficiary of a deceased Participant individually or with others (whether or not as a class action) from instituting legal or arbitration proceedings to enforce his own rights under the Plan while the Advisory Committee is negotiating pursuant to the provisions of this Section whether or not such Participant or Beneficiary is a member of the Advisory Committee.

15.3. Rights. Without request or demand, the Advisory Committee shall be entitled to all reports, information, and data to which the Bank is entitled (without request or demand) under the Trust Agreement and any other reports, information, or data received by the Bank from the Trustee or the Actuary. The Bank shall give the following written notices to the Advisory Committee (which the Advisory Committee may waive if deemed in the best interest of Plan Voters): (i) twenty (20) days prior to the payment of any benefits or other sums from the Trust other than Trustee’s fees and expenses in the operations of the Plan, the amount to be so paid, the computation thereof, and the amount of any benefits under the Plan and Trustee’s fees and expenses to be paid from the Bank’s general assets; (ii) no later than five (5) days after making any contribution to the Trust, the amount of such contribution and the Recordkeeper’s certification and detailed computations on the basis of which the determination of such amount was made; (iii) any amendments proposed to be made to the Trust Agreement twenty (20) days prior to the Bank’s requesting from Participants a Qualified Vote or a Super Qualified Vote; (iv) within five (5) days after any substitution of Trust assets by the Bank; (v) at least twenty (20) days before any change in investment policy is made by the Committee or other authorized body under the Trust Agreement; (vi) twenty (20) days after the close of each calendar quarter, a report of all contributions to and payments from, the Trust Fund during such quarter; (vii) five (5) days prior to any change of Recordkeeper, the name and address of the proposed new Recordkeeper and a brief description of its relevant experience and controlling shareholders, and the reasons for such change; (viii) five (5) days prior to any change in the Service Agreement, a full description of, or a copy of such changes; (ix) within five (5) days of any change in any member of the Human Resources Committee of the Board of Directors of the Bank or of any individual to whom it delegates any authority with respect to the Plan or any change in authority previously so delegated to an individual, the name of any new member of the Committee, the name of any person no longer serving as such a member, the name of any additional person to whom such authority has been granted, the name of any person from whom such authority has been taken and a description of any change in any such authority granted to any person; and (x) within five (5) days of any change in the 401(k) Review Committee, the name of any new person and the name of any person no longer serving as such a member. The Advisory Committee, or a person designated by it, may vote on behalf of any Participant who so authorizes it or a delegate chosen by it to vote on behalf of such Participant pursuant to any provision of the Trust Agreement. Acquiescence or inaction by the Advisory Committee shall not be deemed to be approval or consent and in any event shall in no way bind or limit the rights of Participants or Beneficiaries of deceased Participants.

29

ARTICLE XVI

CREDITED SERVICE AND ADOPTION BY AFFILIATES

16.1. Computation of Credited Service For Purposes of Article IV and Article VIII.

For purposes of applying the provisions of Articles IV and VIII:

(a) The Credited Service of a Participant shall terminate upon his termination of service with the Bank (except as provided in Section 16.3), but such termination of service shall be determined in accordance with the following rules: A period of a leave of absence for military leave, or sick leave or other bona fide leave of absence shall constitute Credited Service for only a period of six (6) months or, if longer, as long as such Participant’s right to reemployment is guaranteed by statute or contract, and unless such Participant returns to actual Credited Service upon the expiration of such six (6) month or longer period such Participant’s Credited Service shall terminate upon such expiration or his earlier death or resignation. In order to constitute a bona fide leave of absence, there must be a reasonable expectation that the Participant will return to perform services for the Bank.

(b) A Participant shall be deemed to have a termination of Credited Service in the event his hours of service as an employee or independent contractor are permanently reduced to less than 50% of his average hours of service during the preceding 36 months (or if employed as an employee or independent contractor by the Bank or any member of an affiliated group less than 36 months, during such shorter period)

(c) A Participant shall not be deemed to have had a termination of Credited Service if he is employed by the Bank or any member of an affiliated group as an employee or independent contractor 50% or more of his average hours of service during the preceding 36 months (or if employed as an employee or independent contractor by the Bank or any member of an affiliated group less than 36 months, during such shorter period).

16.2. Computation of Credited Service For Purposes of Section 8.2.

For purposes of applying the provisions of Section 8.2:

(a) The Credited Service of a Participant shall terminate upon his disability, retirement or termination of service with the Bank (except as provided in Section 16.3) for any reason; and the following types of absences shall not be deemed to terminate the Credited Service of a Participant:

(i) Leave of absence granted for sickness, injury, disability, government, civic or charitable service or any other specific reason, for not more than two (2) years.

30

(ii) Absence for military service under leave of absence granted by the Bank or when required by law, provided he returns to service as an employee of the Bank or an affiliated employer described in Section 16.3 within ninety (90) days of his release from active military duty or any longer period during which his right to re-employment is protected by law.

(iii) Lay off not in excess of two (2) years until employment is terminated either by the employee or the Bank or an affiliated employer described in Section 16.3.

(b) Credited Service shall not be deemed terminated by the first twenty-four (24) consecutive months of a maternity or paternity leave of absence. For purposes of this paragraph, a “maternity or paternity leave of absence” means an absence (i) by reason of the pregnancy; (ii) by reason of the birth of a child of an employee; (iii) by reason of the placement of a child with the an employee in connection with the adoption of the child by such employee; or (iv) for purposes of caring for such child for a period beginning immediately following such birth or placement. The Committee may, in its discretion reasonably require an employee to furnish timely information to establish that an absence from work is a maternity or paternity absence and the number of days for which there was such an absence.

16.3. Employment in Affiliated Group.

Once a person is actually an employee of the Bank (without reference to the provisions of this Section), employment by any member of an affiliated group shall be deemed employment by the Bank for purposes of determining whether he remains in Credited Service. The term “member of an affiliated group” shall include each and all of the following: (i) any corporation which is a member of a controlled group of corporations (as defined in Section 414(b) of the Code), which group includes the Bank; (ii) any trade or business (whether or not incorporated) which is under common control (as defined in Section 414(c) of the Code) with the Bank; (iii) any organization (whether incorporated or not) which is a member of affiliated service group (as defined in Section 414(m) of the Code) which includes the Bank; and (iv) any other entity required to be aggregated with the Bank pursuant to Regulations under Section 414(o) of the Code.

16.4. Adoption by Affiliates

(a) With the consent of the Committee and upon recommendation of the Administrative Committee, this Plan may be adopted by any corporations or trade or businesses or other organizations or entities included in the definition of “member of an affiliated group” set forth in Section 16.3. Separate accounts shall be maintained with respect to all contributions made by such adopting employer. Such adopting employer shall be solely responsible for any contributions required with respect to compensation paid by such adopting employer unless otherwise agreed by the Bank. In the event that

31

any such amounts are paid by the adopting employer to fund its obligations into any trust described in Article IX such amounts shall be subject to the claims of creditors of the Bank in accordance with the terms of Section 9.1 and with respect to such amounts so paid by such adopting employer, the terms of Section 9.1 shall be construed as if the term “the Bank” refers to “either the Bank or such adopting employer”’. Further the provisions of Section 9.2 and 9.3 shall with respect to the adopting employer be construed as if the terms “the Bank” were referring to such adopting employer. In the event that the Bank and/or one or more adopting employers shares in payment of compensation to any Participant, the contributions shall be required hereunder shall be allocated by them in proportion to the total compensation paid by all of them to such Participant unless the Bank and such other payors otherwise agree.

(b) Any adopting employer may withdraw from the Plan or terminate the Plan as to its employees and shall do so upon 60 days notice so to do from the Bank, and to the extent permissible any amounts in such Trust attributable to contributions by such adopting employer shall be paid to such adopting employer or its designee. No distributions from such Trust to pay for Plan benefits earned from an adopting employer shall be paid except to the extent such funds are attributable to the contributions of such adopting employer and no Trust funds so applicable shall be used to pay for benefits not attributable to service to such affiliated employer.

(c) Unless specifically provided in a writing signed by the Bank, service to such affiliated employer prior to the time of the adoption of the Plan by such affiliated employer shall not be counted for purposes of eligibility, vesting or benefit accrual notwithstanding any other provisions of this Plan.

16.5. Special Rule for 2009 Bank Consolidations. For those Participants who, as of December 31, 2008, were employees of one of the banks being merged with and into the Bank effective as of January 1, 2009 (the “Subsidiary Banks”), service prior to January 1, 2009 recognized for purposes of eligibility and vesting under the Chittenden Corporation Incentive Savings and Profit Sharing Plan for the Subsidiary Bank employees who were participants in (or eligible to participate in) such plan as of December 31, 2008 will also be recognized for such employees solely for purposes of eligibility and vesting (but not benefit accrual) under the Plan.

[remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the Bank, acting by its undersigned officer, duly authorized, hereby executes the Plan to be effective as herein provided.

PEOPLE’S UNITED BANK, NATIONAL ASSOCIATION
By:
	John P. Barnes
	Its Chief Executive Officer

33

APPENDIX A

to the

People’s United Bank, N.A.

Nonqualified Savings and Retirement Plan

I. The Interim 2005 Procedures are described as follows:

Prior to December 31, 2004 Participants were required to elect irrevocably the total percentage of their Election Compensation for 2005 and STIP bonus earned in 2004 and payable in 2005 to be deferred as contributions to the 401(k) Plan and this Plan. However, Participants were able to change their elections with respect to contributions to the 401(k) Plan. Contributions to this Plan in 2005 commenced only after a Participant ceased being able to make 401(k) deferrals because of application of Sections 402(g), 401(a)(17) and 415 of the Code. In February, 2005 the Interim 2005 Procedures were changed to provide that for purposes of determining Participant Contributions under this Plan with respect to such compensation, the Participant’s 401(k) contribution percentage elections in effect as of the first payroll date in March of 2005 would be applied regardless of any change made in such election thereafter. In June, 2005 the Interim 2005 Procedures were changed to provide Plan Participants an opportunity to elect a separate percentage deferral rate for the STIP bonus based on service during 2005 and payable in 2006 which differed from that applicable to other Election Compensation for 2005 and provided that they made such election on or prior to June 30, 2005.

II. The Interim 2006 Procedures are described as follows:

Prior to December 31, 2005 Participants were required to elect irrevocably the total percentage of their Election Compensation for 2006 to be deferred as contributions to the 401(k) Plan and this Plan. Participants were allowed to change their 401(k) Plan deferrals during 2006, but no such changes did or would affect the amount of contributions with respect to 2006 Election Compensation under this Plan. Contributions to this Plan with respect to Election Compensation for 2006 (including contributions with respect to STIP bonuses earned in 2006 and paid in 2007) commenced only after a Participant would have ceased being able to make 401(k) deferrals because of application of Sections 402(g), 401(a)(17) and 415 of the Code if the application of those Sections had been determined by reference to such Participant’s 401(k) Plan percentage deferral elections last elected prior to December 31, 2006 (regardless of any change actually made in such Participant’s 401(k) Plan deferral election). The Interim 2006 Procedures allowed for separate elections applicable to (a) the STIP bonus based on service in 2006 and payable in 2007 and (b) to all other Election Compensation for 2006.

34

Appendix B

to

People’s United Bank, N.A. Nonqualified Savings and Retirement Plan

	Effective Period
Minimum Salary Grade	Began	Ended
Grade 10	Effective Date	15-Feb-2004
Grade 65O	16-Feb-2004	26-Oct-2008
Grade 65	27-Oct-2008	N/A

35

Appendix C

to

People’s United Bank, N.A. Nonqualified Savings and Retirement Plan

APY	Nominal Rate	Effective Rate for Plan Year(s)
8%	7.721%	20081
8%	7.721%	2009 and thereafter until changed
Average of the yield for each of the 12 months ended September 30 of the calendar year prior to the Plan Year for which the Plan Interest rate is to become effective for debt obligations having a 10-year maturity issued by A-rated U.S. Banks, as published by Bloomberg (screen reference key C07010Y)	See Appendix C-1 for details of APY and nominal rate derived from index	2012 and thereafter until changed
Average of the yield for each of the 12 months ended September 30 of the calendar year prior to the Plan Year for which the Plan Interest rate is to become effective for debt obligations having a 15-year maturity issued by A-rated U.S. Banks, as published by Bloomberg (screen reference key C07015Y)	See Appendix C-1 for details of APY and nominal rate derived from index	2016 and thereafter until changed

¹  Effective for partial Plan Year beginning November 1, 2008 and ended December 31, 2008

36

Appendix C-1

APY and Nominal Rate Calculations Based on Reference Rate

	Reference Rate (APY)
Plan Year	Description	Actual Rate (APY)	Nominal Rate
2012	Average of the yield for each of the 12 months ended September 30, 2011for debt obligations having a 10-year maturity issued by A-rated U.S. Banks, as published by Bloomberg (screen reference key C07010Y)	5.033%	4.920%
2013	Same as above but with reference to 12 months ended Sept. 30, 2012	3.817%	3.752%
2014	Same as above but with reference to 12 months ended Sept. 30, 2013	3.549%	3.493%
2015	Same as above but with reference to 12 months ended Sept. 30, 2014	3.889%	3.821%
2016	Average of the yield for each of the 12 months ended September 30, 2015 for debt obligations having a 15-year maturity issued by A-rated U.S. Banks, as published by Bloomberg (screen reference key C07015Y)	4.130%	4.053%

37

EX-12.1

Exhibit 12.1

Consolidated Ratio of Earnings to Fixed Charges

The ratio of earnings to fixed charges is calculated by dividing (i) income from continuing operations before income tax expense and fixed charges by (ii) fixed charges. For purposes of computing these ratios, earnings consists of income from continuing operations before income tax expense plus fixed charges. Fixed charges consists of interest expense on deposits and borrowings, amortization of deferred debt costs and one-third of rent expense, which approximates the estimated interest portion of rent expense. These ratios are presented both including and excluding interest on deposits. Fixed charges excluding interest on deposits consist of interest on borrowings, amortization of deferred debt costs and one-third of rent expense, which approximates the interest component of rent expense. Fixed charges including interest on deposits consist of the preceding items plus interest on deposits.

Years ended December 31 (in millions, except ratios)	2015		2014		2013		2012		2011
Earnings:
Income from continuing operations before income tax expense	$	390.5	$	380.6	$	347.6	$	369.3	$	292.1
Fixed charges including interest on deposits		153.9		135.5		132.3		120.7		141.3
Earnings including interest on deposits		544.4		516.1		479.9		490.0		433.4
Less interest on deposits		95.5		80.9		81.1		90.8		107.4
Earnings excluding interest on deposits	$	448.9	$	435.2	$	398.8	$	399.2	$	326.0
Fixed charges:
Interest on deposits	$	95.5	$	80.9	$	81.1	$	90.8	$	107.4
Interest on borrowings		41.3		37.8		34.7		15.4		21.1
Estimated interest component of rent expense		17.1		16.8		16.5		14.5		12.8
Fixed charges including interest on deposits		153.9		135.5		132.3		120.7		141.3
Less interest on deposits		95.5		80.9		81.1		90.8		107.4
Fixed charges excluding interest on deposits	$	58.4	$	54.6	$	51.2	$	29.9	$	33.9
Ratio of earnings to fixed charges:
Excluding interest on deposits		7.69x		7.97x		7.79x		13.35x		9.62x
Including interest on deposits		3.54x		3.81x		3.63x		4.06x		3.07x

EX-12.2

Exhibit 12.2

Consolidated Combined Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements

The ratio of earnings to combined fixed charges and preferred stock dividend requirements is calculated by dividing (i) income from continuing operations before income tax expense and fixed charges by (ii) combined fixed charges and preferred stock dividend requirements. For purposes of computing these ratios, earnings consists of income from continuing operations before income tax expense plus fixed charges. Fixed charges consist of interest expense on deposits and borrowings, and one-third of rent expense, which approximates the estimated interest portion of rent expense. These ratios are presented both including and excluding interest on deposits. Fixed charges excluding interest on deposits consist of interest on borrowings and one-third of rent expense, which approximates the interest component of rent expense. Fixed charges including interest on deposits consist of the preceding items plus interest on deposits.

Years ended December 31 (in millions, except ratios)	2015		2014		2013		2012		2011
Earnings:
Income from continuing operations before income tax expense	$	390.5	$	380.6	$	347.6	$	369.3	$	292.1
Fixed charges including interest on deposits		153.9		135.5		132.3		120.7		141.3
Earnings including interest on deposits		544.4		516.1		479.9		490.0		433.4
Less interest on deposits		95.5		80.9		81.1		90.8		107.4
Earnings excluding interest on deposits	$	448.9	$	435.2	$	398.8	$	399.2	$	326.0
Fixed charges:
Interest on deposits	$	95.5	$	80.9	$	81.1	$	90.8	$	107.4
Interest on borrowings		41.3		37.8		34.7		15.4		21.1
Estimated interest component of rent expense		17.1		16.8		16.5		14.5		12.8
Fixed charges including interest on deposits		153.9		135.5		132.3		120.7		141.3
Preferred stock dividend requirements		—		—		—		—		—
Combined fixed charges and preferred stock dividend requirements including interest on deposits		153.9		135.5		132.3		120.7		141.3
Less interest on deposits		95.5		80.9		81.1		90.8		107.4
Combined fixed charges and preferred stock dividend requirements excluding interest on deposits	$	58.4	$	54.6	$	51.2	$	29.9	$	33.9
Ratio of earnings to combined fixed charges and preferred stock dividend requirements:
Excluding interest on deposits		7.69x		7.97x		7.79x		13.35x		9.62x
Including interest on deposits		3.54x		3.81x		3.63x		4.06x		3.07x

EX-21

Exhibit 21

Name and Address of Each Member of the Affiliated Group	Jurisdiction of Organization	Line of Business	Ownership
People’s United Bank, N.A. 850 Main Street Bridgeport, Connecticut	United States	Financial Services		100	%
People’s Ventures II, Inc. 850 Main Street Bridgeport, Connecticut	Connecticut	Investment Subsidiary		100	%
The following subsidiaries are owned directly by People’s United Bank:
People’s United Equipment Finance Corp. 1300 Post Oak Boulevard, Suite 1300 Houston, Texas	Texas	Equipment Financing		100	%
People’s United Insurance Agency, Inc. 225 Asylum Street Hartford, Connecticut	Connecticut	Insurance Agency		100	%
BOWM Securities Corporation 1391 Main Street Springfield, Massachusetts	Massachusetts	Investment Subsidiary		100	%
The address of the following wholly owned subsidiaries of People’s United Bank is 850 Main Street, Bridgeport, Connecticut:
People’s Capital and Leasing Corp.	Connecticut	Equipment Financing
People’s Securities, Inc.	Connecticut	Securities Brokerage
People’s United Muni Finance Corp.	Connecticut	Investment Subsidiary
People’s United Merchant Services Holdings, Inc.	Connecticut	Service Corporation
People’s Mortgage Investment Company	Connecticut	Connecticut Passive Investment Company
MSB Real Estate Corp.	Connecticut	Real Estate Investment
PB Real Estate, Inc.	Connecticut	Real Estate Investment
ONB Realty Corp.	Maine	Real Estate Investment

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

The Board of Directors

People’s United Financial, Inc.:

We consent to the incorporation by reference in the registration statements on Form S-8 (No. 333-195996, No. 333-176163,
No. 333-140865, No. 333-142119 and No. 333-163873) and Form S-3 (No. 333-184753 and No. 333-172201) of our reports dated February 29, 2016, with respect to the consolidated statements of condition of People’s United Financial, Inc. and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for each of the years in the three-year period ended December 31, 2015, and the effectiveness of internal control over financial reporting as of December 31, 2015, which reports appear in the December 31, 2015 Annual Report on Form 10-K of People’s United Financial, Inc.

/s/ KPMG LLP

Stamford, Connecticut

February 29, 2016

EX-31.1

Exhibit 31.1

Rule 13a-14(a)/15d-14(a) Certifications

CERTIFICATIONS

I, John P. Barnes, certify that:

1. I have reviewed this Annual Report on Form 10-K of People’s United Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 29, 2016	/s/ John P. Barnes
	John P. Barnes
	Principal Executive Officer

EX-31.2

Exhibit 31.2

Rule 13a-14(a)/15d-14(a) Certifications

CERTIFICATIONS

I, R. David Rosato, certify that:

1. I have reviewed this Annual Report on Form 10-K of People’s United Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 29, 2016	/s/ R. David Rosato
	R. David Rosato
	Principal Financial Officer

EX-32

Exhibit 32

Section 1350 Certifications

Executive Certifications

pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), each of the undersigned officers of People’s United Financial, Inc. (the “Company”), does hereby certify, to the best of such officer’s knowledge, that:

1. The Company’s Annual Report on Form 10-K for the period ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934.

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period ended December 31, 2015.

This Certification is made effective as of the date the Report is filed with the Securities and Exchange Commission.

Date: February 29, 2016	/s/ John P. Barnes
	John P. Barnes
	Principal Executive Officer
Date: February 29, 2016	/s/ R. David Rosato
	R. David Rosato
	Principal Financial Officer

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report or as a separate disclosure document.

EX-99.1

Exhibit 99.1

Impact of Inflation

The Consolidated Financial Statements and other financial information presented in the Annual Report (on Form 10-K) have been prepared in conformity with U.S. generally accepted accounting principles, which require the measurement of financial position and operating results in terms of historical dollars without considering changes in the relative purchasing power of money over time due to inflation. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates have a more significant impact on a financial institution’s performance than the effects of general levels of inflation. Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services.

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 17, 2016	Jun. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Trading Symbol	PBCT
Entity Registrant Name	People's United Financial, Inc.
Entity Central Index Key	0001378946
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		310,440,469
Entity Public Float			$ 5,023,144,734

XML

Consolidated Statements of Condition - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash and due from banks (note 2)	$ 334.8	$ 345.1
Short-term investments (note 2)	380.5	668.6
Total cash and cash equivalents	715.3	1,013.7
Securities purchased under agreements to resell (note 2)		100.0
Securities (note 3):
Trading account securities, at fair value	6.7	8.3
Securities available for sale, at fair value	4,527.7	3,993.7
Securities held to maturity, at amortized cost (fair value of $1.66 billion and $881.6 million)	1,609.6	834.3
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	305.4	175.7
Total securities	6,449.4	5,012.0
Loans held for sale (note 4)	34.5	34.2
Loans (note 4):
Consumer	2,203.1	2,200.6
Total loans	28,410.9	26,592.0
Less allowance for loan losses	(211.0)	(198.3)
Total loans, net	28,199.9	26,393.7
Goodwill (note 5)	1,958.7	1,954.5
Bank-owned life insurance	346.5	343.3
Premises and equipment, net (note 6)	257.8	277.8
Other acquisition-related intangible assets (note 5)	129.1	148.0
Other assets (note 7)	786.2	719.9
Total assets	38,877.4	35,997.1
Deposits (note 8):
Non-interest-bearing	6,178.6	5,655.1
Savings, interest-bearing checking and money market	17,420.7	15,252.4
Time	4,818.1	5,230.7
Total deposits	28,417.4	26,138.2
Borrowings (note 9):
Federal Home Loan Bank advances	3,463.8	2,291.7
Customer repurchase agreements	469.5	486.0
Federal funds purchased	374.0	913.0
Other borrowings		1.0
Total borrowings	4,307.3	3,691.7
Notes and debentures (note 10)	1,038.7	1,033.5
Other liabilities (note 7)	382.4	500.6
Total liabilities	$ 34,145.8	$ 31,364.0
Commitments and contingencies (notes 19 and 20)
Stockholders' Equity (note 12)
Common stock ($0.01 par value; 1.95 billion shares authorized; 399.2 million shares and 396.8 million shares issued)	$ 3.9	$ 3.9
Additional paid-in capital	5,337.7	5,291.2
Retained earnings	880.8	826.7
Unallocated common stock of Employee Stock Ownership Plan, at cost (7.3 million shares and 7.7 million shares) (note 16)	(151.8)	(159.0)
Accumulated other comprehensive loss (note 15)	(177.2)	(168.2)
Treasury stock, at cost (89.1 million shares and 89.0 million shares)	(1,161.8)	(1,161.5)
Total stockholders' equity	4,731.6	4,633.1
Total liabilities and stockholders' equity	38,877.4	35,997.1
Commercial Customers [Member]
Borrowings (note 9):
Customer repurchase agreements	469.5	486.0
Commercial Loans [Member]
Loans (note 4):
Commercial	10,722.0	10,055.1
Commercial Real Estate Loan [Member]
Loans (note 4):
Commercial	10,028.8	9,404.3
Residential Mortgage Loan [Member]
Loans (note 4):
Residential mortgage	$ 5,457.0	$ 4,932.0

XML

Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Securities held to maturity, at fair value	$ 1,662.5	$ 881.6
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,950,000,000	1,950,000,000
Common stock, shares issued	399,200,000	396,800,000
Unallocated common stock of Employee Stock Ownership Plan, shares	7,317,499	7,700,000
Treasury stock, shares	89,100,000	89,000,000

XML

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest and dividend income:
Commercial	$ 364.4	$ 351.0	$ 347.0
Commercial real estate	343.5	354.2	351.2
Residential mortgage	165.4	153.5	139.9
Consumer	72.3	73.9	74.8
Total interest on loans	945.6	932.6	912.9
Securities	121.5	96.8	89.7
Loans held for sale	1.3	0.8	1.5
Short-term investments	0.5	0.4	0.3
Total interest and dividend income	1,068.9	1,030.6	1,004.4
Interest expense:
Deposits (note 8)	95.5	80.9	81.1
Borrowings (note 9)	11.5	11.1	10.5
Notes and debentures	29.8	26.7	24.2
Total interest expense	136.8	118.7	115.8
Net interest income	932.1	911.9	888.6
Provision for loan losses (note 4)	33.4	40.6	43.7
Net interest income after provision for loan losses	898.7	871.3	844.9
Non-interest income:
Bank service charges	125.2	128.6	127.3
Investment management fees	43.7	41.6	37.2
Commercial banking lending fees	42.6	36.4	40.4
Operating lease income	42.3	41.6	34.5
Insurance revenue	30.7	29.9	31.2
Brokerage commissions	12.6	13.6	13.7
Gain on sale of business, net of expenses (note 7)	9.2	20.6
Net gains on sales of residential mortgage loans (note 4)	5.5	2.9	14.8
Net gains (losses) on sales of acquired loans (note 4)	1.7	(0.9)	5.7
Net security gains (note 3)		3.0
Other non-interest income	38.9	33.5	36.9
Total non-interest income	352.4	350.8	341.7
Non-interest expense:
Compensation and benefits (notes 16 and 17)	449.5	436.0	427.1
Occupancy and equipment (notes 6 and 19)	149.5	147.3	148.0
Professional and outside services	68.0	59.2	60.6
Operating lease expense	37.1	37.4	31.3
Regulatory assessments	35.1	35.6	33.8
Amortization of other acquisition-related intangible assets (note 5)	23.9	24.8	26.2
Other non-interest expense	97.5	101.2	112.0
Total non-interest expense	860.6	841.5	839.0
Income before income tax expense	390.5	380.6	347.6
Income tax expense (note 11)	130.4	128.9	115.2
Net income	$ 260.1	$ 251.7	$ 232.4
Earnings per common share (note 14):
Basic	$ 0.86	$ 0.84	$ 0.74
Diluted	$ 0.86	$ 0.84	$ 0.74

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 260.1	$ 251.7	$ 232.4
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial (loss) gain arising during the year	(3.5)	(98.5)	92.0
Reclassification adjustment for net actuarial loss included in net income	9.1	8.4	8.8
Net actuarial gain (loss)	5.6	(90.1)	100.8
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income	(1.0)	(1.0)	(1.1)
Net actuarial gain (loss) and prior service credit	4.6	(91.1)	99.7
Net unrealized gains and losses on securities available for sale:
Net unrealized holding (losses) gains arising during the year	(22.1)	70.9	(194.4)
Unrealized holding losses on securities transferred during the year			37.0
Reclassification adjustment for net realized gains included in net income		(3.0)
Net unrealized (losses) gains	(22.1)	67.9	(157.4)
Net unrealized losses on securities transferred to held to maturity:
Unrealized holding losses on securities transferred during the year			(37.0)
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income	3.1	3.0
Net unrealized gains (losses)	3.1	3.0	(37.0)
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized (losses) gains arising during the year	(1.1)	(0.9)	0.7
Reclassification adjustment for net realized losses included in net income	1.2	1.3	1.2
Net unrealized gains	0.1	0.4	1.9
Other comprehensive loss, before tax	(14.3)	(19.8)	(92.8)
Deferred income tax benefit related to other comprehensive loss	5.3	6.7	34.6
Current period other comprehensive income (loss)	(9.0)	(13.1)	(58.2)
Total comprehensive income	$ 251.1	$ 238.6	$ 174.2

XML

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Unallocated ESOP Common Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]
Beginning Balance at Dec. 31, 2012	$ 5,038.8	$ 3.9	$ 5,261.3	$ 756.2	$ (173.5)	$ (96.9)	$ (712.2)
Net income	232.4			232.4
Total other comprehensive loss, net of tax (note 15)	(58.2)					(58.2)
Cash dividends on common stock	(204.8)			(204.8)
Restricted stock awards	9.6		8.9	(0.2)			0.9
Employee Stock Ownership Plan common stock committed to be released (note 16)	4.9			(2.4)	7.3
Common stock repurchased (note 12)	(458.9)						(458.9)
Common stock repurchased and retired upon vesting of restricted stock awards (note 17)	(2.2)			(2.2)
Stock options and related tax benefits	6.8		6.8
Ending Balance at Dec. 31, 2013	4,568.4	3.9	5,277.0	779.0	(166.2)	(155.1)	(1,170.2)
Net income	251.7			251.7
Total other comprehensive loss, net of tax (note 15)	(13.1)					(13.1)
Cash dividends on common stock	(196.9)			(196.9)
Restricted stock awards	9.6		2.9	(2.0)			8.7
Employee Stock Ownership Plan common stock committed to be released (note 16)	5.1			(2.1)	7.2
Common stock repurchased and retired upon vesting of restricted stock awards (note 17)	(3.0)			(3.0)
Stock options and related tax benefits	11.3		11.3
Ending Balance at Dec. 31, 2014	4,633.1	3.9	5,291.2	826.7	(159.0)	(168.2)	(1,161.5)
Net income	260.1			260.1
Total other comprehensive loss, net of tax (note 15)	(9.0)					(9.0)
Cash dividends on common stock	(201.2)			(201.2)
Restricted stock awards	10.5		10.6	0.2			(0.3)
Employee Stock Ownership Plan common stock committed to be released (note 16)	5.4			(1.8)	7.2
Common stock repurchased and retired upon vesting of restricted stock awards (note 17)	(3.2)			(3.2)
Stock options and related tax benefits	35.9		35.9
Ending Balance at Dec. 31, 2015	$ 4,731.6	$ 3.9	$ 5,337.7	$ 880.8	$ (151.8)	$ (177.2)	$ (1,161.8)

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Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash dividends on common stock, per share	$ 0.6675	$ 0.6575	$ 0.6475
Retained Earnings [Member]
Cash dividends on common stock, per share	$ 0.6675	$ 0.6575	$ 0.6475

XML

Consolidated Statements of Cash flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash Flows from Operating Activities:
Net income	$ 260.1	$ 251.7	$ 232.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment	39.3	39.6	40.3
Expense related to operating leases	37.1	37.4	31.3
Provision for loan losses	33.4	40.6	43.7
Amortization of other acquisition-related intangible assets	23.9	24.8	26.2
Expense related to share-based awards	17.2	14.9	13.9
Employee Stock Option Plan common stock committed to be released	5.4	5.1	4.9
Deferred income tax expense	14.1	6.7	15.5
Gain on sale of business, net of expenses	(9.2)	(20.6)
Net gains on sales of residential mortgage loans	(5.5)	(2.9)	(14.8)
Net (gains) losses on sales of acquired loans	(1.7)	0.9	(5.7)
Net security gains		(3.0)
Originations of loans held-for-sale	(448.3)	(308.4)	(721.9)
Proceeds from sales of loans held-for-sale	453.5	300.4	790.4
Net decrease (increase) in trading account securities	1.6		(1.8)
Net changes in other assets and other liabilities	(92.6)	(37.2)	(75.0)
Net cash provided by operating activities	328.3	350.0	379.4
Cash Flows from Investing Activities:
Net decrease (increase) in securities purchased under agreements to resell	100.0	(100.0)
Proceeds from principal repayments and maturities of securities available for sale	821.4	686.7	938.5
Proceeds from sales of securities available for sale	305.9	539.2
Proceeds from principal repayments and maturities of securities held to maturity	25.6	64.4	0.2
Purchases of securities available for sale	(1,766.4)	(879.8)	(1,373.8)
Purchases of securities held to maturity	(803.3)	(251.4)
Net redemptions (purchases) of Federal Home Loan Bank stock	10.4		(102.0)
Net purchases of Federal Reserve Bank stock	(140.1)
Proceeds from sales of loans	31.3	9.7	30.8
Loan disbursements, net of principal collections	(1,856.5)	(2,241.5)	(2,731.4)
Purchases of loans	(9.5)
Purchases of premises and equipment	(29.8)	(19.5)	(14.0)
Purchases of leased equipment	(50.5)	(34.0)	(70.0)
Proceeds from sales of real estate owned	23.4	14.5	18.0
Return of premiums on bank-owned life insurance, net	1.2	1.4	1.0
Cash paid in acquisition	(10.3)
Net cash used in investing activities	(3,347.2)	(2,210.3)	(3,302.7)
Cash Flows from Financing Activities:
Net increase in deposits	2,279.2	3,580.9	806.8
Net increase (decrease) in borrowings with terms of three months or less	619.5	(1,362.2)	2,709.1
Repayments of borrowings with terms of more than three months	(1.3)	(0.6)	(35.5)
Net proceeds from issuance of notes and debentures		394.4
Repayments of notes and debentures		(19.0)	(20.6)
Cash dividends paid on common stock	(201.2)	(196.9)	(204.8)
Common stock repurchases	(3.2)	(3.0)	(461.1)
Proceeds from stock options exercised, including excess income tax benefits	27.5	6.0	2.4
Net cash provided by financing activities	2,720.5	2,399.6	2,796.3
Net (decrease) increase in cash and cash equivalents	(298.4)	539.3	(127.0)
Cash and cash equivalents at beginning of year	1,013.7	474.4	601.4
Cash and cash equivalents at end of year	715.3	1,013.7	474.4
Supplemental Information:
Interest payments	136.2	108.8	118.6
Income tax payments	107.8	109.7	93.7
Real estate properties acquired by foreclosure	14.7	17.6	21.7
Unsettled purchases of securities	$ 5.0	$ 91.5	23.3
Securities transferred from available for sale to held to maturity at fair value (note 3)			$ 584.5

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 1 – Summary of Significant Accounting Policies

People’s United Financial, Inc. (“People’s United” or the “Company”) is a bank holding company and a financial holding company registered under the Bank Holding Company Act of 1956, as amended, and is incorporated under the state laws of Delaware. People’s United is the holding company for People’s United Bank, N.A. (the “Bank”), a national banking association headquartered in Bridgeport, Connecticut. Prior to February 23, 2015, the Company was a savings and loan holding company within the meaning of the Home Owners’ Loan Act and the Bank was a federally-chartered savings bank. The principal business of People’s United is to provide, through the Bank and its subsidiaries, commercial banking, retail banking and wealth management services to individual, corporate and municipal customers.

The Bank provides a full range of traditional banking services, including accepting deposits and originating loans, as well as specialized financial services through its non-bank subsidiaries, including: equipment financing provided through People’s Capital and Leasing Corp. (“PCLC”) and People’s United Equipment Finance Corp. (“PUEFC”); brokerage, financial advisory services, investment management services and life insurance provided through People’s Securities, Inc. (“PSI”); and other insurance services provided through People’s United Insurance Agency, Inc. (“PUIA”). The Company’s overall financial results are particularly dependent on economic conditions in New England and New York, which are its primary markets, although economic conditions elsewhere in the United States affect its equipment financing business. Deposits are insured up to applicable limits by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (the “FDIC”).

People’s United is regulated by the Board of Governors of the Federal Reserve System (the “FRB”) and subject to FRB examination, supervision and reporting requirements. The Bank is regulated by the Office of the Comptroller of the Currency (the “OCC”) and subject to OCC examination, supervision and reporting requirements.

Basis of Financial Statement Presentation

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of People’s United and its subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. Certain reclassifications have been made to prior year amounts to conform to the current year presentation.

In preparing the consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from management’s current estimates, as a result of changing conditions and future events.

Several accounting estimates are particularly critical and are susceptible to significant near-term change, including the allowance for loan losses and asset impairment judgments, such as the recoverability of goodwill and other intangible assets. These accounting estimates, which are included in the discussion below, are reviewed with the Audit Committee of the Board of Directors.

The judgments used by management in applying critical accounting policies may be affected by economic conditions, which may result in changes to future financial results. For example, subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan losses in future periods, and the inability to collect outstanding principal may result in increased loan losses.

For purposes of the Consolidated Statements of Cash Flows, cash equivalents include highly liquid instruments, such as: (i) interest-bearing deposits at the Federal Reserve Bank of New York (“FRB-NY”); (ii) government-sponsored enterprise (“GSE”) debt securities with an original maturity of three months or less (determined as of the date of purchase); (iii) federal funds sold; (iv) commercial paper; and (v) money market mutual funds. These instruments are reported as short-term investments in the Consolidated Statements of Condition at cost or amortized cost, which approximates fair value. GSE debt securities classified as cash equivalents are held to maturity and carry the implicit backing of the U.S. government, but are not direct obligations of the U.S. government.

Securities

Marketable equity and debt securities (other than those reported as short-term investments) are classified as either trading account securities, held to maturity securities (applicable only to debt securities) or available for sale securities. Management determines the classification of a security at the time of its purchase and reevaluates such classification at each balance sheet date.

Securities purchased for sale in the near term as well as those securities held by PSI (in accordance with the requirements for a broker-dealer) are classified as trading account securities and reported at fair value with unrealized gains and losses reported in non-interest income.

Debt securities for which People’s United has the positive intent and ability to hold to maturity are classified as held to maturity securities and reported at amortized cost. All other securities are classified as available for sale and reported at fair value with unrealized gains and losses reported on an after-tax basis in stockholders’ equity as accumulated other comprehensive income (loss). Premiums are amortized and discounts are accreted to interest income for debt securities, using the interest method over the remaining period to contractual maturity, adjusted for the effect of actual prepayments in the case of mortgage-backed securities and collateralized mortgage obligations (“CMOs”).

Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification method and reported in non-interest income.

Securities transferred from available for sale to held to maturity are recorded at fair value at the date of transfer. The unrealized pre-tax gain or loss resulting from the difference between fair value and amortized cost at the transfer date becomes part of the new amortized cost basis of the securities and remains in accumulated other comprehensive loss (“AOCL”). Such unrealized gains or losses are amortized to interest income as an adjustment to yield over the remaining life of the securities, offset by the amortization of the premium or discount resulting from the transfer at fair value, with no effect to net income.

Management conducts a periodic review and evaluation of the securities portfolio to determine if the decline in fair value of any security is deemed to be other-than-temporary. Other-than-temporary impairment losses are recognized on debt securities when: (i) People’s United has an intention to sell the security; (ii) it is more likely than not that People’s United will be required to sell the security prior to recovery; or (iii) People’s United does not expect to recover the entire amortized cost basis of the security. Other-than-temporary impairment losses on debt securities are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. Management has the ability and intent to hold the securities classified as held to maturity until they mature, at which time People’s United expects to receive full value for the securities.

Both FRB-NY stock and Federal Home Loan Bank (“FHLB”) stock are non-marketable equity securities and are, therefore, reported at their respective costs, which equals par value (the amount at which shares have been redeemed in the past). These investments are periodically evaluated for impairment based on, among other things, the capital adequacy of the FRB-NY or applicable FHLB and their overall financial condition.

Securities Resale and Securities Repurchase Agreements

In securities resale agreements, a counterparty transfers securities to People’s United (as transferee) and People’s United agrees to resell the same securities to the counterparty at a fixed price in the future. In securities repurchase agreements, which include both retail arrangements with customers and wholesale arrangements with other counterparties, People’s United (as transferor) transfers securities to a counterparty and agrees to repurchase the same securities from the counterparty at a fixed price in the future.

People’s United accounts for securities resale agreements as secured lending transactions and securities repurchase agreements as secured borrowings since the transferor maintains effective control over the transferred securities and the transfer meets the other criteria for such accounting. The securities are pledged by the transferor as collateral and the transferee has the right by contract to repledge that collateral provided the same collateral is returned to the transferor upon maturity of the underlying agreement. The fair value of the pledged collateral approximates the recorded amount of the secured loan or borrowing. Decreases in the fair value of the transferred securities below an established threshold require the transferor to provide additional collateral.

Loans Held for Sale

Loans held for sale are reported at the lower of cost or fair value in the aggregate with any adjustment for net unrealized losses reported in non-interest income. Management identifies and designates as loans held for sale certain newly-originated adjustable-rate and fixed-rate residential mortgage loans that meet secondary market requirements, as these loans are originated with the intent to sell. From time to time, management identifies and designates residential mortgage loans held in the loan portfolio for sale. Such loans are transferred to loans held for sale and adjusted to the lower of cost or fair value with the resulting unrealized loss, if any, reported in non-interest income.

Loans

Loans acquired in connection with business combinations are referred to as ‘acquired’ loans as a result of the manner in which they are accounted for (see further discussion under ‘Acquired Loans’ below). All other loans are referred to as ‘originated’ loans.

Basis of Accounting

Originated loans are reported at amortized cost less the allowance for loan losses. Interest on loans is accrued to income monthly based on outstanding principal balances. Loan origination fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized in interest income as an adjustment of yield. Depending on the loan portfolio, amounts are amortized or accreted using the level yield method over either the actual life or the estimated average life of the loan.

Non-accrual Loans

A loan is generally considered “non-performing” when it is placed on non-accrual status. A loan is generally placed on non-accrual status when it becomes 90 days past due as to interest or principal payments. Past due status is based on the contractual payment terms of the loan. A loan may be placed on non-accrual status before it reaches 90 days past due if such loan has been identified as presenting uncertainty with respect to the collectability of interest and principal. A loan past due 90 days or more may remain on accruing status if such loan is both well secured and in the process of collection. There were no loans past due 90 days or more and still accruing interest at December 31, 2015, 2014 or 2013.

All previously accrued but unpaid interest on non-accrual loans is reversed from interest income in the period in which the accrual of interest is discontinued. Interest payments received on non-accrual loans (including impaired loans) are generally applied as a reduction of principal if future collections are doubtful, although such interest payments may be recognized as income. A loan remains on non-accrual status until the factors that indicated doubtful collectability no longer exist or until a loan is determined to be uncollectible and is charged off against the allowance for loan losses.

Impaired Loans

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impaired loans also include certain originated loans whose terms have been modified in such a way that they are considered troubled debt restructurings (“TDRs”). Originated loans are considered TDRs if the borrower is experiencing financial difficulty and is afforded a concession by People’s United, such as, but not limited to: (i) payment deferral; (ii) a reduction of the stated interest rate for the remaining contractual life of the loan; and (iii) an extension of the loan’s original contractual term at a stated previously accrued principal or interest.

TDRs may either be accruing or placed on non-accrual status (and reported as non-performing loans) depending upon the loan’s specific circumstances, including the nature and extent of the related modifications. TDRs on non-accrual status remain classified as such until the loan qualifies for return to accrual status. Loans qualify for return to accrual status once they have demonstrated performance with the restructured terms of the loan agreement for a minimum of six months in the case of a commercial loan or, in the case of a retail loan, when the loan is less than 90 days past due. Loans may continue to be reported as TDRs after they are returned to accrual status. In accordance with regulatory guidance, residential mortgage and home equity loans restructured in connection with the borrower’s bankruptcy and meeting certain criteria are also required to be classified as TDRs, included in non-performing loans and written down to the estimated collateral value, regardless of delinquency status. Acquired loans that are modified are not considered for TDR classification provided they are evaluated for impairment on a pool basis.

Impairment is evaluated on a collective basis for smaller-balance loans with similar credit risk and on an individual loan basis for other loans. If a loan is deemed to be impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported (net of the allowance) at the present value of expected future cash flows discounted at the loan’s original effective interest rate or at the fair value of the collateral less cost to sell if repayment is expected solely from the collateral. Interest payments on impaired non-accrual loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Acquired Loans

Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected are initially recorded at fair value without recording an allowance for loan losses. Fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a

market-based discount rate to those cash flows. Acquired loans are generally accounted for on a pool basis, with pools formed based on the loans’ common risk characteristics, such as loan collateral type and accrual status. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows.

Under the accounting model for acquired loans, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield”, is accreted into interest income over the life of the loans in each pool using the effective yield method. Accordingly, acquired loans are not subject to classification as non-accrual in the same manner as originated loans. Rather, acquired loans are considered to be accruing loans because their interest income relates to the accretable yield recognized at the pool level and not to contractual interest payments at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “nonaccretable difference”, includes estimates of both the impact of prepayments and future credit losses expected to be incurred over the life of the loans in each pool. As such, charge-offs on acquired loans are first applied to the nonaccretable difference and then to any allowance for loan losses recognized subsequent to acquisition.

Subsequent to acquisition, actual cash collections are monitored relative to management’s expectations and revised cash flow forecasts are prepared, as warranted. These revised forecasts involve updates, as necessary, of the key assumptions and estimates used in the initial estimate of fair value. Generally speaking, expected cash flows are affected by:

• Changes in the expected principal and interest payments over the estimated life – Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows resulting from loan modifications are included in the assessment of expected cash flows;

• Changes in prepayment assumptions – Prepayments affect the estimated life of the loans which may change the amount of interest income, and possibly principal, expected to be collected; and

• Changes in interest rate indices for variable rate loans – Expected future cash flows are based, as applicable, on the variable rates in effect at the time of the assessment of expected cash flows.

A decrease in expected cash flows in subsequent periods may indicate that the loan pool is impaired, which would require the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods serves, first, to reduce any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan pool. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans in the pool.

An acquired loan may be resolved either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party or foreclosure of the collateral. In the event of a sale of the loan, a gain or loss on sale is recognized and reported within non-interest income based on the difference between the sales proceeds and the carrying amount of the loan. In other cases, individual loans are removed from the pool based on comparing the amount received from its resolution (fair value of the underlying collateral less costs to sell in the case of a foreclosure) with its outstanding balance. Any difference between these amounts is absorbed by the nonaccretable difference established for the entire pool. For loans resolved by payment in full, there is no adjustment of the nonaccretable difference since there is no difference between the amount received at resolution and the outstanding balance of the loan. In these cases, the remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by the removal of the loan from the pool is addressed in connection with the subsequent cash flow re-assessment for the pool. Acquired loans subject to modification are not removed from the pool even if those loans would otherwise be deemed TDRs as the pool, and not the individual loan, represents the unit of account.

Allowance and Provision for Loan Losses

The allowance for loan losses is established through provisions for loan losses charged to income. Losses on loans, including impaired loans, are charged to the allowance for loan losses when all or a portion of a loan is deemed to be uncollectible. Recoveries of loans previously charged off are credited to the allowance for loan losses when realized.

People’s United maintains the allowance for loan losses at a level that is deemed to be appropriate to absorb probable losses inherent in the respective loan portfolios, based on a quarterly evaluation of a variety of factors. These factors include, but are not limited to: (i) People’s United’s historical loan loss experience and recent trends in that experience; (ii) risk ratings assigned by lending personnel to commercial real estate loans, commercial and industrial loans, and equipment financing loans, and the results of ongoing reviews of those ratings by People’s United’s independent loan review function; (iii) an evaluation of delinquent and non-performing loans and related collateral values; (iv) the probability of loss in view of geographic and industry concentrations and other portfolio risk characteristics; (v) the present financial condition of borrowers; and (vi) current economic conditions.

The Company’s allowance for loan losses consists of three elements: (i) an allowance for larger-balance, non-homogeneous loans that are evaluated on an individual (loan-by-loan) basis; (ii) an allowance for smaller-balance, homogeneous loans that are evaluated on a collective basis; and (iii) a specific allowance for loans deemed to be impaired, including originated loans classified as TDRs.

Larger-balance, Non-homogeneous Loans. The Company establishes a loan loss allowance for its larger-balance, non-homogeneous loans using a methodology that incorporates (i) the probability of default for a given loan risk rating and (ii) historical default data over a multi-year period. In accordance with the Company’s loan risk rating system, each loan, with the exception of those included in large groups of smaller-balance homogeneous loans, is assigned a risk rating (using a nine-grade scale) by the originating loan officer, credit management, internal loan review or loan committee. Loans rated “One” represent those loans least likely to default while loans rated “Nine” represent a loss. The probability of loans defaulting for each risk rating, referred to as default factors, are estimated based on the historical pattern of loans migrating from one risk rating to another and to default status over time as well as the length of time that it takes losses to emerge. Estimated loan default factors, which are updated annually (or more frequently, if necessary), are multiplied by loan balances within each risk-rating category and again multiplied by a historical loss-given-default estimate for each loan type to determine an appropriate level of allowance by loan type. The historical loss-given-default estimates are also updated annually (or more frequently, if necessary) based on actual charge-off experience. This approach is applied to the commercial, commercial real estate and equipment financing components of the loan portfolio.

In developing the allowance for loan losses for larger-balance, non-homogeneous loans, the Company also gives consideration to certain qualitative factors, including the macroeconomic environment and any potential imprecision inherent in its loan loss model that may result from having limited historical loan loss data which, in turn, may result in inaccurate probability of default and loss-given-default estimates. In consideration of these factors, the Company may adjust the allowance for loan losses upward or downward based on current economic conditions and portfolio trends. In determining the extent of any such adjustment, the Company considers both economic and portfolio-specific data that correlates with loan losses. The Company evaluates the qualitative factors on a quarterly basis in order to conclude that they continue to be appropriate. There were no significant changes in the amount of the qualitative component of the related allowance for loan losses during 2015.

Smaller-balance, Homogeneous Loans. Pools of smaller-balance, homogeneous loans with similar risk and loss characteristics are also assessed for probable losses. These loan pools include residential mortgage, home equity and other consumer loans that are not assigned individual loan risk ratings. Rather, the assessment of these portfolios, and the establishment of the related allowance for loan losses, is based upon a consideration of (i) recent historical loss experience and (ii) certain qualitative factors.

In establishing the allowance for loan losses for residential mortgage loans, the Company principally considers historical portfolio loss experience of the most recent 1- and 3-year periods, as management believes this provides a reasonable basis for estimating the inherent probable losses within the residential mortgage portfolio. In establishing the allowance for loan losses for home equity loans, the Company principally considers historical portfolio loss experience of the most recent 12-month period.

The qualitative component of the allowance for loan losses for smaller-balance, homogenous loans is intended to incorporate risks inherent in the portfolio, economic uncertainties, regulatory requirements and other subjective factors such as changes in underwriting standards. Accordingly, consideration is given to: (i) present and forecasted economic conditions, including unemployment rates; (ii) changes in industry trends, including the impact of new regulations, (iii) trends in property values; (iv) broader portfolio indicators, including delinquencies, non-performing loans, portfolio concentrations, and trends in the volume and terms of loans; and (v) portfolio-specific risk characteristics.

The portfolio-specific risk characteristics considered include: (i) collateral values/loan-to-value (“LTV”) ratios (above and below 70%); (ii) borrower credit scores under the FICO scoring system (above and below a score of 680); and (iii) other relevant portfolio risk elements such as income verification at the time of underwriting (stated income vs. non-stated income) and the property’s intended use (owner-occupied, non-owner occupied, second home, etc.), the combination of which results in a loan being classified as either “High”, “Moderate” or “Low” risk. These risk classifications are reviewed quarterly to ensure that changes within the portfolio, as well as economic indicators and industry developments, have been appropriately considered in establishing the related allowance for loan losses.

In establishing the allowance for loan losses for smaller-balance, homogeneous loans, the amount reflecting the Company’s consideration of qualitative factors is added to the amount attributable to historical portfolio loss experience. In this manner, historical charge-off data (whether periods or amounts) is not adjusted and the allowance for loan losses always includes a component attributable to qualitative factors, the degree of which may change from period to period as such qualitative factors indicate improving or worsening trends. There were no significant changes in the amount of the qualitative component of the related allowance for loan losses during 2015.

Individually Impaired Loans. The allowance for loan losses also includes specific allowances for individually impaired loans. Generally, the Company’s impaired loans consist of (i) classified commercial loans in excess of $750,000 that have been placed on non-accrual status and (ii) originated loans classified as TDRs. Individually impaired loans are measured based upon observable market prices; the present value of expected future cash flows discounted at the loan’s original effective interest rate; or, in the case of collateral dependent loans, fair value of the collateral (based on appraisals and other market information) less cost to sell. If the recorded investment in a loan exceeds the amount measured as described in the preceding sentence, a specific allowance for loan losses would be established as a component of the overall allowance for loan losses or, in the case of a collateral dependent loan, a charge-off would be recorded for the difference between the loan’s recorded investment and management’s estimate of the fair value of the collateral (less cost to sell). It would be rare for the Company to identify a loan that meets the criteria stated above and requires a specific allowance or a charge-off and not deem it impaired solely as a result of the existence of a guarantee.

People’s United performs an analysis of its impaired loans, including collateral dependent impaired loans, on a quarterly basis. Individually impaired collateral dependent loans are measured based upon the appraised value of the underlying collateral and other market information. Generally, the Company’s policy is to obtain updated appraisals for commercial collateral dependent loans when the loan is downgraded to a risk rating of “substandard” or “doubtful”, and the most recent appraisal is more than 12 months old or a determination has been made that the property has experienced a significant decline in value. Appraisals are prepared by independent, licensed third-party appraisers and are subject to review by the Company’s internal commercial appraisal department or external appraisers contracted by the commercial appraisal department. The conclusions of the external appraisal review are reviewed by the Company’s Chief Commercial Appraiser prior to acceptance. The Company’s policy with respect to impaired loans secured by residential real estate is to receive updated estimates of property values upon the loan being classified as non-performing (typically upon becoming 90 days past due).

In determining the allowance for loan losses, People’s United gives appropriate consideration to the age of appraisals through its regular evaluation of other relevant qualitative and quantitative information. Specifically, between scheduled appraisals, property values are monitored within the commercial portfolio by reference to current originations of collateral dependent loans and the related appraisals obtained during underwriting as well as by reference to recent trends in commercial property sales as published by leading industry sources. Property values are monitored within the residential mortgage and home equity portfolios by reference to available market indicators, including real estate price indices within the Company’s primary lending areas.

In most situations where a guarantee exists, the guarantee arrangement is not a specific factor in the assessment of the related allowance for loan losses. However, the assessment of a guarantor’s credit strength is reflected in the Company’s internal loan risk ratings which, in turn, are an important factor in its allowance for loan loss methodology for loans within the commercial and commercial real estate portfolios.

People’s United did not change its methodologies with respect to determining the allowance for loan losses during 2015. As part of its ongoing assessment of the allowance for loan losses, People’s United regularly makes refinements to certain underlying assumptions used in its methodologies. However, such refinements did not have a material impact on the allowance for loan losses or the provision for loan losses as of or for the year ended December 31, 2015.

While People’s United seeks to use the best available information to make these determinations, future adjustments to the allowance for loan losses may be necessary based on changes in economic conditions, results of regulatory examinations, further information obtained regarding known problem loans, the identification of additional problem loans and other factors.

Loan Charge-Offs

The Company’s charge-off policies, which comply with standards established by banking regulators, are consistently applied from period to period. Charge-offs are recorded on a monthly basis. Partially charged-off loans continue to be evaluated on a monthly basis and additional charge-offs or loan loss provisions may be recorded on the remaining loan balance based on the same criteria.

For unsecured consumer loans, charge-offs are generally recorded when the loan is deemed to be uncollectible or 120 days past due, whichever occurs first. For consumer loans secured by real estate, including residential mortgage loans, charge-offs are generally recorded when the loan is deemed to be uncollectible or 180 days past due, whichever occurs first, unless it can be clearly demonstrated that repayment will occur regardless of the delinquency status. Factors that demonstrate an ability to repay may include: (i) a loan that is secured by adequate collateral and is in the process of collection; (ii) a loan supported by a valid guarantee or insurance; or (iii) a loan supported by a valid claim against a solvent estate.

For commercial loans, a charge-off is recorded when the Company determines that it will not collect all amounts contractually due based on the fair value of the collateral less cost to sell, or the present value of expected future cash flows.

The decision whether to charge-off all or a portion of a loan rather than to record a specific or general loss allowance is based on an assessment of all available information that aids in determining the loan’s net realizable value. Typically this involves consideration of both (i) the fair value of any collateral securing the loan, including whether the estimate of fair value has been derived from an appraisal or other market information and (ii) other factors affecting the likelihood of repayment, including the existence of guarantees and insurance. If the amount by which the Company’s recorded investment in the loan exceeds its net realizable value is deemed to be a confirmed loss, a charge-off is recorded. Otherwise, a specific or general reserve is established, as applicable.

Wealth Management and Other Fee-Based Revenues

Investment management fees are accrued when earned based on total assets managed and administered, which are not reported as assets of People’s United. Insurance revenue represents commissions earned solely from performing broker- and agency-related services. Insurance commission revenues related to agency-billed policies are recognized at the later of the policy billing date or the policy effective date. Insurance commission revenues on premiums directly billed by insurance carriers are generally recognized as revenue during the period commissions are paid by the insurance carrier. Brokerage commissions are recognized on a trade-date basis. Bank service charges are recorded when earned.

Bank-Owned Life Insurance

Bank-owned life insurance (“BOLI”) represents the cash surrender value of life insurance policies purchased on the lives of certain key executives and former key executives. BOLI funds are generally invested in separate accounts and are supported by a stable wrap agreement to fully insulate the underlying investments against changes in fair value. Increases in the cash surrender value of these policies and death benefits in excess of the related invested premiums are included in non-interest income in the Consolidated Statements of Income. The Company’s BOLI policies have been underwritten by highly-rated third party insurance carriers and the investments underlying these policies are deemed to be of low-to-moderate market risk.

Premises and Equipment

Premises and equipment are reported at cost less accumulated depreciation and amortization, except for land, which is reported at cost. Buildings, data processing and other equipment, computer software, furniture and fixtures are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, the estimated useful life of the improvements or 10 years. Capitalized software development costs are amortized on a straight-line basis over the estimated useful life of the software. Generally, the estimated useful lives are as follows: buildings – 40 years; data processing and other equipment – 3 to 5 years; computer software – 3 to 5 years; and furniture and fixtures – 10 years.

Goodwill and Other Acquisition-Related Intangible Assets

An acquirer in a business combination is required, upon initially obtaining control of another entity, to recognize the assets, liabilities and any non-controlling interest in the acquiree at fair value as of the acquisition date. Contingent consideration, if any, is also recognized and measured at fair value on the date of acquisition. In addition, the accounting standards for business combinations require that: (i) acquisition-related transaction costs be expensed as incurred; (ii) specific requirements be met in order to accrue for a restructuring plan as part of the acquisition; (iii) certain pre-acquisition contingencies be recognized at fair value; and (iv) acquired loans be recorded at fair value as of the acquisition date without recognition of an allowance for loan losses.

Intangible assets are recognized in an amount equal to the excess of the purchase price over the fair value of the tangible net assets acquired. “Acquisition-related intangible assets” are separately identified and recognized, where appropriate, for assets such as trade names and the estimated values of acquired core deposits and/or customer relationships. The remaining intangible asset is recognized as goodwill.

Goodwill and indefinite-lived intangible assets are not amortized but, rather, are reviewed for impairment at least annually, with impairment losses recognized as a charge to expense when they occur. Acquisition-related intangible assets other than goodwill and indefinite-lived intangible assets are amortized to expense over their estimated useful lives and are periodically reviewed by management to assess recoverability, with impairment losses recognized as a charge to expense if carrying amounts exceed fair values.

The Company’s trade name intangible is being amortized on an accelerated basis over a period of approximately 20 years, reflecting the manner in which the related benefit is expected to be realized. Core deposit intangibles are amortized over 10 years on an accelerated basis that reflects the manner in which the related benefit attributable to the acquired deposits is expected to be realized. Customer relationship intangibles are amortized on a straight-line basis (approximating the manner in which the benefit is expected to be realized) over the estimated remaining average life of those relationships (ranging from 7 to 15 years from the respective acquisition dates).

Goodwill is evaluated for impairment at the reporting unit level. For the purpose of goodwill impairment evaluations, management has identified reporting units based upon the Company’s three operating segments: Commercial Banking; Retail Banking; and Wealth Management. The impairment evaluation is performed as of an annual date or more frequently if a triggering event indicates that impairment may have occurred.

Entities have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity is not required to perform the two-step impairment test as described below. People’s United elected to perform this optional qualitative assessment in its evaluation of goodwill impairment as of October 1st (the annual impairment evaluation date) in 2013, and concluded that performance of the two-step impairment test was not required. In both 2015 and 2014, People’s United elected to perform the two-step impairment test.

The first step (“Step 1”) is used to identify potential impairment, and involves comparing each reporting unit’s estimated fair value to its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not deemed to be impaired. Should the carrying amount of the reporting unit exceed its estimated fair value, an indicator of potential impairment is deemed to exist and a second step is performed to measure the amount of such impairment, if any. At this time, none of the Company’s identified reporting units are at risk of failing the Step 1 goodwill impairment test.

The second step (“Step 2”) involves calculating the implied fair value of goodwill for each reporting unit for which impairment was indicated in Step 1. The implied fair value of goodwill is determined in a manner similar to how the amount of goodwill is determined in a business combination (i.e. by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles applicable to that reporting unit as of the impairment testing date). If the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting unit, no impairment exists. If the carrying amount of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recorded in an amount equal to such excess. An impairment loss cannot exceed the carrying amount of goodwill assigned to a reporting unit, and the loss (write-down) establishes a new carrying amount for the goodwill. Subsequent reversals of goodwill impairment losses are not permitted.

The Company estimates the fair value of its reporting units based on an appropriate weighting of values based on (i) a present-value measurement technique (discounted cash flow analysis based on internal forecasts) and (ii) market-based trading and transaction multiples. The discounted cash flow analysis is based on significant assumptions and judgments including future growth rates and discount rates reflecting management’s assessment of market participant views of the risks associated with the projected cash flows of the reporting units. The market-based trading and transaction multiples are derived from the market prices of stocks of companies that are actively traded and engaged in the same or similar businesses as the Company and the respective reporting unit. The derived multiples are then applied to the reporting unit’s financial metrics to produce an indication of value. Differences in the identification of reporting units or in the selection of valuation techniques and related assumptions could result in materially different evaluations of goodwill impairment.

Real Estate Owned

Real estate owned (“REO”) properties acquired through foreclosure or deed-in-lieu of foreclosure are recorded initially at the lower of cost or estimated fair value less costs to sell. Any write-down of the recorded investment in the related loan is charged to the allowance for loan losses upon transfer to REO. Thereafter, an allowance for REO losses is established for any further declines in the property’s value. This allowance is increased by provisions charged to income and decreased by charge-offs for realized losses. Management’s periodic evaluation of the adequacy of the allowance is based on an analysis of individual properties, as well as a general assessment of current real estate market conditions.

Income Taxes

Deferred taxes are recognized for the estimated future tax effects attributable to “temporary differences” and tax loss carryforwards. Temporary differences are differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. A deferred tax liability is recognized for all temporary differences that will result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions and for all tax loss carryforwards, subject to reduction of the asset by a valuation allowance in certain circumstances. This valuation allowance is recognized if, based on an analysis of available evidence, management determines that it is more likely than not that some portion or all of the deferred tax asset will not be realized. The valuation allowance is subject to ongoing adjustment based on changes in circumstances that affect management’s judgment about the realizability of the deferred tax asset.

Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to future taxable income. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in income tax expense in the period that includes the enactment date of the change. Tax benefits attributable to deductions in excess of financial statement amounts arising from the exercise of non-statutory stock options are credited to additional paid-in capital.

Individual tax positions taken or expected to be taken on a tax return must satisfy certain criteria in order for some or all of the related tax benefits to be recognized in the financial statements. Specifically, a recognition threshold of more-likely-than-not must be met in order to recognize those tax benefits.

Earnings Per Common Share

Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method.

Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Companies that have such participating securities, including People’s United, are required to calculate basic and diluted EPS using the two-class method. Restricted stock awards granted by People’s United are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities.

Derivative Financial Instruments and Hedging Activities

People’s United uses derivative financial instruments as components of its market risk management (principally to manage interest rate risk (“IRR”)). Certain other derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes.

All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Condition, reported at fair value and presented on a gross basis. Until a derivative is settled, a favorable change in fair value results in an unrealized gain that is recognized as an asset, while an unfavorable change in fair value results in an unrealized loss that is recognized as a liability.

The Company generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exist between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. The hedge accounting method depends upon whether the derivative instrument is classified as a fair value hedge (i.e. hedging an exposure related to a recognized asset or liability, or a firm commitment) or a cash flow hedge (i.e. hedging an exposure related to the variability of future cash flows associated with a recognized asset or liability, or a forecasted transaction). Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recorded in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income (loss) until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings.

People’s United formally documents at inception all relationships between the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. This process includes linking all derivatives that are designated as hedges to specific assets and liabilities, or to specific firm commitments or forecasted transactions. People’s United also formally assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of the hedged items. If it is determined that a derivative is not highly effective or has ceased to be a highly effective hedge, People’s United would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in AOCL and are amortized to earnings over the remaining period of the former hedging relationship, provided the hedged item continues to be outstanding or it is probable the forecasted transaction will occur.

People’s United uses the dollar offset method, regression analysis and scenario analysis to assess hedge effectiveness at inception and on an ongoing basis. Such methods are chosen based on the nature of the hedge strategy and are used consistently throughout the life of the hedging relationship.

Certain derivative financial instruments are offered to commercial customers to assist them in meeting their financing and investing objectives and for their risk management purposes. These derivative financial instruments consist primarily of interest rate swaps, but also include foreign exchange contracts. The interest rate and foreign exchange risks associated with customer interest rate swaps and foreign exchange contracts are mitigated by entering into similar derivatives having essentially offsetting terms with institutional counterparties.

Interest rate-lock commitments extended to borrowers relate to the origination of residential mortgage loans. To mitigate the IRR inherent in these commitments, People’s United enters into mandatory delivery and best efforts contracts to sell adjustable-rate and fixed-rate residential mortgage loans (servicing released). Forward commitments to sell and interest rate-lock commitments on residential mortgage loans are considered derivatives and their respective estimated fair values are adjusted based on changes in interest rates.

Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings, including customer derivatives, interest-rate lock commitments and forward sale commitments.

Balance Sheet Offsetting

Assets and liabilities relating to certain financial instruments, including derivatives, may be eligible for offset in the Consolidated Statements of Condition and/or subject to enforceable master netting arrangements or similar agreements. People’s United’s derivative transactions with institutional counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements, which include “right of set-off” provisions that provide for a single net settlement of all interest rate swap positions, as well as collateral, in the event of default on, or the termination of, any one contract. Nonetheless, the Company does not offset asset and liabilities under such arrangements in the Consolidated Statements of Condition.

Collateral (generally in the form of marketable debt securities) pledged by counterparties in connection with derivative transactions is not reported in the Consolidated Statements of Condition unless the counterparty defaults. Collateral that has been pledged by People’s United to counterparties continues to be reported in the Consolidated Statements of Condition unless the Company defaults.

Fair Value Measurements

Accounting standards related to fair value measurements define fair value, provide a framework for measuring fair value and establish related disclosure requirements. Broadly, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accordingly, an “exit price” approach is required in determining fair value. In support of this principle, a fair value hierarchy has been established that prioritizes the inputs used to measure fair value, requiring entities to maximize the use of market or observable inputs (as more reliable measures) and minimize the use of unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs generally require significant management judgment.

The three levels within the fair value hierarchy are as follows:

• Level 1 – Unadjusted quoted market prices for identical assets or liabilities in active markets that the entity has the ability to access at the measurement date (such as active exchange-traded equity securities or mutual funds and certain U.S. and government agency debt securities).

• Level 2 – Observable inputs other than quoted prices included in Level 1, such as:

• quoted prices for similar assets or liabilities in active markets (such as U.S. agency and GSE issued mortgage-backed securities and CMOs);

• quoted prices for identical or similar assets or liabilities in less active markets (such as certain U.S. and government agency debt securities, and corporate and municipal debt securities that trade infrequently); and

• other inputs that (i) are observable for substantially the full term of the asset or liability (e.g. interest rates, yield curves, prepayment speeds, default rates, etc.) or (ii) can be corroborated by observable market data (such as interest rate and currency derivatives and certain other securities).

• Level 3 – Valuation techniques that require unobservable inputs that are supported by little or no market activity and are significant to the fair value measurement of the asset or liability (such as pricing models, discounted cash flow methodologies and similar techniques that typically reflect management’s own estimates of the assumptions a market participant would use in pricing the asset or liability).

People’s United maintains policies and procedures to value assets and liabilities using the most relevant data available.

Stock-Based Compensation

People’s United’s stock-based compensation plans provide for awards of stock options and restricted stock to directors, officers and employees. Costs resulting from the issuance of such share-based payment awards are required to be recognized in the financial statements based on the grant date fair value of the award. Stock-based compensation expense is recognized over the requisite service period, which is generally the vesting period.

New Accounting Standards

Standards effective in 2015

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure

In January 2014, the Financial Accounting Standards Board (the “FASB”) amended its standards with respect to the accounting for consumer mortgage loans collateralized by residential real estate to clarify that such loans should, upon foreclosure, be reclassified by a creditor as REO when either (i) the creditor obtains legal title to the real estate collateral or (ii) a deed in lieu of foreclosure, conveying all interest in the real estate to the creditor, is completed. In addition, the amendment requires a creditor to provide additional disclosures with respect to (i) the amount of residential real estate meeting the conditions set forth above and (ii) the recorded investment in consumer mortgage loans secured by residential real estate properties that are in the process of foreclosure. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2015 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Repurchase Agreements

In June 2014, the FASB amended its standards with respect to repurchase agreements to (i) require that repurchase-to-maturity transactions be accounted for as secured borrowings, thereby eliminating the possibility of such transactions qualifying for sale accounting treatment, and (ii) eliminate existing guidance for repurchase financings. The amendment also requires enhanced disclosures for certain transactions accounted for as secured borrowings and transfers accounted for as sales when the transferor also retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. In adopting this new guidance, all entities must report changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. This amendment became effective for People’s United on January 1, 2015 and did not have a significant impact on the Company’s Consolidated Financial Statements as none of the Company’s repurchase agreements represent repurchase-to-maturity transactions or repurchase financings and all repurchase agreements have been accounted for as secured borrowings.

Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure

In August 2014, the FASB amended its standards with respect to the classification of certain government-guaranteed residential mortgage loans to clarify that upon foreclosure of mortgage loans within the scope of the standard, a creditor will be required to reclassify the previously existing mortgage loan to a separate receivable from the guarantor, measured at the amount of the guarantee that it expects to collect. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2015 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Standards effective in 2016

Stock Compensation

In June 2014, the FASB amended its standards with respect to stock compensation to require that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. The amendment further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to those periods for which the requisite service has already been rendered. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. The adoption of this amendment, for which early adoption is permitted, is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Consolidation

In February 2015, the FASB amended its standards with respect to the analysis that a reporting entity must perform in determining whether certain types of legal entities should be consolidated. The amendment modifies the evaluation of whether limited partnerships or similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This new guidance, which can be applied retrospectively or through the use of the cumulative effect transition method, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) with early adoption permitted. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Presentation of Debt Issuance Costs

In April 2015, the FASB amended its standards with respect to the presentation of debt issuance costs by changing the required presentation of such costs from an asset on the balance sheet to a deduction from the related debt liability. For public business entities, this new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) and is to be applied retrospectively. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Retirement Benefits

In April 2015, the FASB amended its standards with respect to the accounting for retirement benefits by providing a practical expedient, for entities with fiscal year-ends that do not coincide with a month-end, permitting such entities to measure defined benefit plan assets and obligations using the month-end that is closest to its fiscal year-end. This practical expedient is to be applied consistently from year to year and to all plans if an entity has more than one plan. Further, in cases where a significant event caused by the entity (such as a plan amendment, curtailment or settlement) that requires the remeasurement of defined benefit plan assets and obligations does not coincide with a month-end, entities may elect to remeasure both plan assets and obligations using the month-end that is closest to the date of the significant event. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) and are to be applied prospectively. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Business Combinations

In September 2015, the FASB amended its standards with respect to business combinations to eliminate the requirement to restate prior period financial statements for measurement period adjustments. Instead, the amended guidance requires that, during the measurement period, an acquirer recognize adjustments of previously recorded provisional amounts in the reporting period in which such adjustments are determined. In doing so, the acquirer would be required to record the cumulative effect of measurement period adjustments on current and prior period earnings, including the prior period impact on depreciation, amortization or other income statement items. The amended standard also contains additional disclosure requirements with respect to measurement period adjustments. This new guidance is effective for fiscal years beginning after December 15, 2015 (January 1, 2016 for People’s United) and is to be applied prospectively. Earlier application is permitted for financial statements that have not yet been made available for issuance. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Standards effective in 2018

Revenue Recognition

In May 2014, the FASB amended its standards with respect to revenue recognition. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance, providing a unified model to determine when and how revenue is recognized. The underlying principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments also require enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. As originally issued, this new guidance, which can be applied retrospectively or through the use of the cumulative effect transition method, was to become effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2016 (January 1, 2017 for People’s United) and early adoption was not permitted. In July 2015, the FASB approved a one-year deferral of the effective date (to January 1, 2018 for People’s United) with early adoption, as of the original effective date, permitted. The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements.

Presentation of Deferred Taxes

In December 2015, the FASB amended its standards with respect to the presentation of deferred income taxes to eliminate the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial condition, thereby simplifying the presentation of deferred income taxes. For public business entities, this new amendment is effective for annual periods beginning after December 15, 2017 (January 1, 2018 for People’s United) and may be applied either prospectively or retrospectively to all periods presented. Earlier application of the amendment is permitted as of the beginning of an interim or annual reporting period. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Recognition and Measurement of Financial Instruments

In January 2016, the FASB amended its standards to address certain aspects of recognition, presentation and disclosure of financial instruments. The amended guidance (i) requires that equity investments be measured at fair value with changes in fair value recognized in net income and (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by permitting a qualitative assessment to identify impairment. The guidance also contains additional disclosure and presentation requirements associated with financial instruments. For public business entities this new guidance is effective in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United). The cumulative effect transition method will be applied to all outstanding instruments as of the date of adoption, while changes to the accounting for equity investments without readily determinable fair values will be applied prospectively. The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements.

Standards effective in 2019

Accounting for Leases

In February 2016, the FASB amended its standards with respect to the accounting for leases. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and requires that an operating lease be recognized on the statement of financial condition as a “right-to-use” asset along with a corresponding liability representing the rent obligation. Key aspects of current lessor accounting remain unchanged from existing guidance. This standard is expected to result in an increase to assets and liabilities recognized and, therefore, increase risk-weighted assets for regulatory capital purposes. The guidance requires the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application and will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (January 1, 2019 for People’s United). The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements.

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Cash and Short-Term Investments

12 Months Ended

Dec. 31, 2015

Cash and Cash Equivalents [Abstract]

Cash and Short-Term Investments

NOTE 2 – Cash and Short-Term Investments

A combination of reserves in the form of deposits with the FRB-NY and vault cash, totaling $86.0 million and $87.2 million at December 31, 2015 and 2014, respectively, were maintained to satisfy federal regulatory requirements. Vault cash is included in cash and due from banks and interest-bearing deposits at the FRB-NY are included in short-term investments in the Consolidated Statements of Condition. These deposits represent an alternative to overnight federal funds sold and had yields of 0.50% and 0.25% at December 31, 2015 and 2014, respectively.

Short-term investments consist of the following cash equivalents:

As of December 31 (in millions)	2015		2014
Interest-bearing deposits at the FRB-NY	$	333.7	$	626.5
Money market mutual funds		8.0		7.3
Other (1)		38.8		34.8
Total short-term investments	$	380.5	$	668.6

(1) Includes cash collateral posted for certain derivative positions.

In connection with its securities purchased under agreements to resell, People’s United takes delivery of collateral from all counterparties. The fair value of the collateral securing the agreements outstanding at December 31, 2014 was $100.4 million (no agreements were outstanding at December 31, 2015).

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Securities

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

NOTE 3 – Securities

The amortized cost, gross unrealized gains and losses, and fair value of People’s United’s securities available for sale and securities held to maturity are as follows:

As of December 31, 2015 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	363.7	$	0.2	$	(1.1	)	$	362.8
GSE residential mortgage-backed securities and CMOs		4,191.3		22.3		(48.9	)		4,164.7
Total debt securities		4,555.0		22.5		(50.0	)		4,527.5
Equity securities		0.2		—		—			0.2
Total securities available for sale	$	4,555.2	$	22.5	$	(50.0	)	$	4,527.7
Securities held to maturity:
Debt securities:
State and municipal	$	1,019.6	$	55.8	$	(0.1	)	$	1,075.3
GSE residential mortgage-backed securities		588.5		—		(2.8	)		585.7
Other		1.5		—		—			1.5
Total securities held to maturity	$	1,609.6	$	55.8	$	(2.9	)	$	1,662.5

As of December 31, 2014 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	56.5	$	0.3	$	—		$	56.8
GSE residential mortgage-backed securities and CMOs		3,943.4		39.7		(46.4	)		3,936.7
Total debt securities		3,999.9		40.0		(46.4	)		3,993.5
Equity securities		0.2		—		—			0.2
Total securities available for sale	$	4,000.1	$	40.0	$	(46.4	)	$	3,993.7
Securities held to maturity:
Debt securities:
State and municipal	$	832.8	$	47.4	$	(0.1	)	$	880.1
Other		1.5		—		—			1.5
Total securities held to maturity	$	834.3	$	47.4	$	(0.1	)	$	881.6

Securities available for sale with a fair value of $1.64 billion and $1.43 billion at December 31, 2015 and 2014, respectively, were pledged as collateral for public deposits and for other purposes.

The following table is a summary of the amortized cost, fair value and fully taxable equivalent (“FTE”) yield of debt securities as of December 31, 2015, based on remaining period to contractual maturity. Information for GSE residential mortgage-backed securities and CMOs is based on the final contractual maturity dates without considering repayments and prepayments.

	Available for Sale							Held to Maturity
(dollars in millions)	Amortized Cost		Fair Value		FTE Yield			Amortized Cost		Fair Value		FTE Yield
U.S. Treasury and agency:
Within 1 year	$	31.1	$	31.1		0.57	%	$	—	$	—		—	%
After 1 but within 5 years		332.6		331.7		1.05			—		—		—
Total		363.7		362.8		1.01			—		—		—
GSE residential mortgage-backed securities and CMOs:
After 5 but within 10 years		860.3		871.8		2.24			—		—		—
After 10 years		3,331.0		3,292.9		1.89			588.5		585.7		2.22
Total		4,191.3		4,164.7		1.96			588.5		585.7		2.22
State and municipal:
Within 1 year		—		—		—			3.9		3.9		4.20
After 1 but within 5 years		—		—		—			22.2		22.6		4.99
After 5 but within 10 years		—		—		—			353.0		376.9		3.36
After 10 years		—		—		—			640.5		671.9		4.56
Total		—		—		—			1,019.6		1,075.3		4.16
Other:
After 1 but within 5 years		—		—		—			1.5		1.5		2.10
Total		—		—		—			1.5		1.5		2.10
Total:
Within 1 year		31.1		31.1		0.57			3.9		3.9		4.20
After 1 but within 5 years		332.6		331.7		1.05			23.7		24.1		4.80
After 5 but within 10 years		860.3		871.8		2.24			353.0		376.9		3.36
After 10 years		3,331.0		3,292.9		1.89			1,229.0		1,257.6		3.44
Total	$	4,555.0	$	4,527.5		1.88	%	$	1,609.6	$	1,662.5		3.45	%

The following tables summarize debt securities with unrealized losses, segregated by the length of time the securities have been in a continuous unrealized loss position at the respective dates. Certain unrealized losses totaled less than $0.1 million.

	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months Or Longer					Total
As of December 31, 2015 (in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE residential mortgage-backed securities and CMOs	$	2,200.8	$	(20.3	)	$	933.9	$	(28.6	)	$	3,134.7	$	(48.9	)
U.S. Treasury and agency		346.3		(1.1	)		—		—			346.3		(1.1	)
Securities held to maturity:
GSE residential mortgage-backed securities		585.7		(2.8	)		—		—			585.7		(2.8	)
State and municipal		22.3		(0.1	)		3.7		—			26.0		(0.1	)
Total	$	3,155.1	$	(24.3	)	$	937.6	$	(28.6	)	$	4,092.7	$	(52.9	)
	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months Or Longer					Total
As of December 31, 2014 (in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE residential mortgage-backed securities and CMOs	$	111.9	$	(0.1	)	$	1,744.2	$	(46.3	)	$	1,856.1	$	(46.4	)
Securities held to maturity:
State and municipal		31.8		(0.1	)		—		—			31.8		(0.1	)
Total	$	143.7	$	(0.2	)	$	1,744.2	$	(46.3	)	$	1,887.9	$	(46.5	)

At December 31, 2015, approximately 11% of the 1,328 securities owned by the Company, consisting of 103 securities classified as available for sale and 48 securities classified as held to maturity, had gross unrealized losses totaling $50.0 million and $2.9 million, respectively. All of the GSE residential mortgage-backed securities and CMOs had AAA credit ratings and an average maturity of 12 years. The state and municipal securities had an average credit rating of AA and an average maturity of 12 years. The cause of the temporary impairment with respect to all of these securities is directly related to changes in interest rates.

Management believes that all gross unrealized losses within the securities portfolio at December 31, 2015 and 2014 are temporary impairments. Management does not intend to sell such securities nor is it more likely than not that management will be required to sell such securities prior to recovery. No other-than-temporary impairment losses were recognized in the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013.

People’s United uses the specific identification method to determine the cost of securities sold and records securities transactions on the trade date. The components of net security gains on debt securities are summarized below (gains for the year ended December 31, 2013 totaled less than $0.1 million). Net gains and losses on trading account securities, which are not included in the table below, totaled less than $0.1 million for each of the years ended December 31, 2015, 2014 and 2013.

Years ended December 31 (in millions)	2015			2014			2013
Debt securities:
Gains	$	0.3		$	4.4		$	—
Losses		(0.3	)		(1.4	)		—
Net security gains	$	—		$	3.0		$	—

The Bank, as a member of the FHLB of Boston, is currently required to purchase and hold shares of capital stock in the FHLB of Boston (total cost of $154.0 million and $164.4 million at December 31, 2015 and 2014, respectively) in an amount equal to its membership base investment plus an activity based investment determined according to the Bank’s level of outstanding FHLB advances. As a result of the Smithtown Bancorp, Inc. acquisition completed in 2010, the Bank acquired shares of capital stock in the FHLB of New York (total cost of $11.3 million at both December 31, 2015 and 2014). Based on the current capital adequacy and liquidity position of both the FHLB of Boston and the FHLB of New York, management believes there is no impairment in the Company’s investment at December 31, 2015 and the cost of the investment approximates fair value. Dividend income on FHLB capital stock totaled $4.6 million, $2.8 million and $0.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The Bank, as a member of the Federal Reserve Bank system, is currently required to purchase and hold shares of capital stock in the FRB-NY in an amount equal to 6% of its capital and surplus. The Bank’s net purchases of FRB-NY capital stock totaled $140.1 million in 2015. Based on the current capital adequacy and liquidity position of the FRB-NY, management believes there is no impairment in the Company’s investment at December 31, 2015 and the cost of the investment approximates fair value. Dividend income on FRB-NY capital stock totaled $7.1 million for the year ended December 31, 2015.

In December 2013, state and municipal securities with a fair value of $584.5 million, which were previously classified as available for sale, were transferred to held to maturity. The $37.0 million pre-tax loss associated with these securities that existed at the date of transfer is being amortized to interest income as an adjustment to yield over the remaining life of the underlying securities.

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Loans

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Loans

NOTE 4 – Loans

For purposes of disclosures related to the credit quality of financing receivables and the allowance for loan losses, People’s United has identified two loan portfolio segments, Commercial and Retail, which are comprised of the following loan classes:

• Commercial Portfolio: commercial real estate; commercial and industrial; and equipment financing.

• Retail Portfolio: residential mortgage; home equity; and other consumer.

Loans acquired in connection with business combinations are referred to as ‘acquired’ loans as a result of the manner in which they are accounted for (see further discussion under ‘Acquired Loans’ in Note 1). All other loans are referred to as ‘originated’ loans. Accordingly, selected credit quality disclosures that follow are presented separately for the ‘originated’ loan portfolio and the ‘acquired’ loan portfolio.

The following table summarizes People’s United’s loans by loan portfolio segment and class:

	2015						2014
As of December 31 (in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Commercial:
Commercial real estate	$	9,696.9	$	331.9	$	10,028.8	$	8,960.3	$	444.0	$	9,404.3
Commercial and industrial		7,526.4		222.3		7,748.7		6,891.1		298.5		7,189.6
Equipment financing		2,957.6		15.7		2,973.3		2,839.0		26.5		2,865.5
Total commercial		10,484.0		238.0		10,722.0		9,730.1		325.0		10,055.1
Total Commercial Portfolio		20,180.9		569.9		20,750.8		18,690.4		769.0		19,459.4
Retail:
Residential mortgage:
Adjustable-rate		4,733.3		117.9		4,851.2		4,254.7		139.1		4,393.8
Fixed-rate		536.1		69.7		605.8		446.8		91.4		538.2
Total residential mortgage		5,269.4		187.6		5,457.0		4,701.5		230.5		4,932.0
Consumer:
Home equity		2,115.5		38.2		2,153.7		2,092.9		50.2		2,143.1
Other consumer		48.5		0.9		49.4		56.3		1.2		57.5
Total consumer		2,164.0		39.1		2,203.1		2,149.2		51.4		2,200.6
Total Retail Portfolio		7,433.4		226.7		7,660.1		6,850.7		281.9		7,132.6
Total loans	$	27,614.3	$	796.6	$	28,410.9	$	25,541.1	$	1,050.9	$	26,592.0

Net deferred loan costs, which are included in loans by respective class and accounted for as interest yield adjustments, totaled $59.8 million and $54.8 million at December 31, 2015 and 2014, respectively.

At December 31, 2015, 27%, 20% and 17% of the Company’s loans by outstanding principal amount were to customers located within Connecticut, New York and Massachusetts, respectively. Loans to customers located in the New England states as a group represented 59% and 61% of total loans at December 31, 2015 and 2014, respectively. Substantially all of the equipment financing portfolio (97% at both December 31, 2015 and 2014) was to customers located outside of New England. At December 31, 2015, 34% of the equipment financing portfolio was to customers located in Texas, California, Louisiana and New York, and no other state exposure was greater than 5%.

Commercial real estate loans include construction loans totaling $630.6 million and $657.5 million at December 31, 2015 and 2014, respectively, net of the unadvanced portion of such loans totaling $314.1 million and $434.7 million, respectively.

At December 31, 2015, residential mortgage loans included $1.1 billion of interest-only loans, of which $0.5 million are stated-income loans, compared to $993.3 million and $1.0 million, respectively, at December 31, 2014. People’s United’s underwriting guidelines and requirements for such loans are generally more restrictive than those applied to other types of residential mortgage products. Also included in residential mortgage loans are construction loans totaling $105.7 million and $107.9 million at December 31, 2015 and 2014, respectively, net of the unadvanced portion of such loans totaling $38.6 million and $45.6 million, respectively.

People’s United sells newly-originated residential mortgage loans in the secondary market, without recourse. Net gains on sales of residential mortgage loans totaled $5.5 million, $2.9 million and $14.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. Loans held for sale at December 31, 2015 and 2014 consisted of newly-originated residential mortgage loans with carrying amounts of $34.5 million and $34.2 million, respectively. During 2015, 2014 and 2013, the Company sold acquired loans with outstanding principal balances totaling $24.1 million, $10.4 million and $12.4 million, respectively (carrying amounts of $22.3 million, $10.3 million and $10.2 million, respectively) and recognized net gains (losses) on sales totaling $1.7 million, $(0.9) million and $5.7 million, respectively.

The following table presents a summary, by loan portfolio segment, of activity in the allowance for loan losses for the years ended December 31, 2015, 2014 and 2013. With respect to the originated portfolio, an allocation of a portion of the allowance to one segment does not preclude its availability to absorb losses in another segment.

	Commercial									Retail
(in millions)	Originated			Acquired			Total			Originated			Acquired			Total			Total
Balance at December 31, 2012	$	157.5		$	10.5		$	168.0		$	20.0		$	—		$	20.0		$	188.0
Charge-offs		(29.7	)		(4.1	)		(33.8	)		(16.0	)		(0.3	)		(16.3	)		(50.1	)
Recoveries		3.7			—			3.7			2.5			—			2.5			6.2
Net loan charge-offs		(26.0	)		(4.1	)		(30.1	)		(13.5	)		(0.3	)		(13.8	)		(43.9	)
Provision for loan losses		27.0			3.4			30.4			12.5			0.8			13.3			43.7
Balance at December 31, 2013		158.5			9.8			168.3			19.0			0.5			19.5			187.8
Charge-offs		(22.3	)		(2.6	)		(24.9	)		(11.1	)		(0.1	)		(11.2	)		(36.1	)
Recoveries		3.6			—			3.6			2.4			—			2.4			6.0
Net loan charge-offs		(18.7	)		(2.6	)		(21.3	)		(8.7	)		(0.1	)		(8.8	)		(30.1	)
Provision for loan losses		29.8			2.6			32.4			8.2			—			8.2			40.6
Balance at December 31, 2014		169.6			9.8			179.4			18.5			0.4			18.9			198.3
Charge-offs		(20.1	)		—			(20.1	)		(7.9	)		—			(7.9	)		(28.0	)
Recoveries		4.9			—			4.9			2.4			—			2.4			7.3
Net loan charge-offs		(15.2	)		—			(15.2	)		(5.5	)		—			(5.5	)		(20.7	)
Provision for loan losses		27.4			(1.9	)		25.5			8.1			(0.2	)		7.9			33.4
Balance at December 31, 2015	$	181.8		$	7.9		$	189.7		$	21.1		$	0.2		$	21.3		$	211.0

The following is a summary, by loan portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio balances:

	Originated Loans Individually Evaluated for Impairment				Originated Loans Collectively Evaluated for Impairment				Acquired Loans (Discounts Related to Credit Quality)				Total
As of December 31, 2015 (in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	155.1	$	5.5	$	20,025.8	$	176.3	$	569.9	$	7.9	$	20,750.8	$	189.7
Retail		97.0		3.9		7,336.4		17.2		226.7		0.2		7,660.1		21.3
Total	$	252.1	$	9.4	$	27,362.2	$	193.5	$	796.6	$	8.1	$	28,410.9	$	211.0
	Originated Loans Individually Evaluated for Impairment				Originated Loans Collectively Evaluated for Impairment				Acquired Loans (Discounts Related to Credit Quality)				Total
As of December 31, 2014 (in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	174.5	$	7.6	$	18,515.9	$	162.0	$	769.0	$	9.8	$	19,459.4	$	179.4
Retail		95.0		3.9		6,755.7		14.6		281.9		0.4		7,132.6		18.9
Total	$	269.5	$	11.5	$	25,271.6	$	176.6	$	1,050.9	$	10.2	$	26,592.0	$	198.3

The recorded investments, by class of loan, of originated non-performing loans are summarized as follows:

As of December 31 (in millions)	2015		2014		2013
Commercial:
Commercial and industrial	$	44.9	$	55.8	$	43.8
Commercial real estate		30.2		60.2		70.8
Equipment financing		27.5		25.4		23.2
Total (1)		102.6		141.4		137.8
Retail:
Residential mortgage		37.2		37.6		58.9
Home equity		19.5		17.9		19.8
Other consumer		0.1		0.1		0.1
Total (2)		56.8		55.6		78.8
Total	$	159.4	$	197.0	$	216.6

(1) Reported net of government guarantees totaling $16.9 million, $17.6 million and $19.4 million at December 31, 2015, 2014 and 2013, respectively. These government guarantees relate, almost entirely, to guarantees provided by the Small Business Administration as well as selected other Federal agencies and represent the carrying value of the loans that are covered by such guarantees, the extent of which (i.e. full or partial) varies by loan. At December 31, 2015, the principal loan classes to which these government guarantees relate are commercial and industrial loans (99%) and commercial real estate loans (1%).

(2) Includes $19.9 million, $18.9 million and $28.7 million of loans in the process of foreclosure at December 31, 2015, 2014 and 2013, respectively.

The preceding table excludes acquired loans that are (i) accounted for as purchased credit impaired loans or (ii) covered by an FDIC loss-share agreement (“LSA”) totaling $27.7 million and $2.3 million, respectively, at December 31, 2015; $100.6 million and $3.0 million, respectively, at December 31, 2014; and $138.0 million and $4.5 million, respectively, at December 31, 2013. Such loans otherwise meet People’s United’s definition of a non-performing loan but are excluded because the loans are included in loan pools that are considered performing and/or credit losses are covered by an FDIC LSA. The discounts arising from recording these loans at fair value were due, in part, to credit quality. The acquired loans are generally accounted for on a pool basis and the accretable yield on the pools is being recognized as interest income over the life of the loans based on expected cash flows at the pool level.

If interest payments on all originated loans classified as non-performing at December 31, 2015, 2014 and 2013 had been made during the respective years in accordance with the loan agreements, interest income of $14.1 million, $16.1 million and $17.1 million would have been recognized on such loans for the years ended December 31, 2015, 2014 and 2013, respectively. Interest income actually recognized on originated non-performing loans totaled $1.6 million, $3.2 million and $2.6 million for the years ended December 31, 2015, 2014 and 2013, respectively.

People’s United’s recorded investment in originated loans classified as TDRs totaled $195.7 million and $181.6 million at December 31, 2015 and 2014, respectively. The related allowance for loan losses at December 31, 2015 and 2014 was $5.9 million and $7.1 million, respectively. Interest income recognized on TDRs totaled $4.6 million, $3.8 million and $3.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. Fundings under commitments to lend additional amounts to borrowers with loans classified as TDRs were immaterial for the years ended December 31, 2015, 2014 and 2013. Originated loans that were modified and classified as TDRs during 2015 principally involve reduced payment and/or payment deferral, extension of term (generally no more than two years for commercial loans and nine years for retail loans) and/or a temporary reduction of interest rate (generally less than 200 basis points).

The following tables summarize, by class of loan, the recorded investments in loans modified as TDRs during the years ended December 31, 2015 and 2014. For purposes of this disclosure, recorded investments represent amounts immediately prior to and subsequent to the restructuring.

	Year ended December 31, 2015
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		26	$	15.2	$	15.2
Commercial and industrial (2)		61		80.6		80.6
Equipment financing (3)		48		28.5		28.5
Total		135		124.3		124.3
Retail:
Residential mortgage (4)		66		20.1		20.1
Home equity (5)		98		9.5		9.5
Other consumer		—		—		—
Total		164		29.6		29.6
Total		299	$	153.9	$	153.9

(1) Represents the following concessions: extension of term (21 contracts; recorded investment of $8.9 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $1.2 million); or a combination of concessions (3 contracts; recorded investment of $5.1 million).

(2) Represents the following concessions: extension of term (35 contracts; recorded investment of $41.1 million); reduced payment and/or payment deferral (20 contracts; recorded investment of $35.9 million); or a combination of concessions (6 contracts; recorded investment of $3.6 million).

(3) Represents the following concessions: extension of term (1 contract; recorded investment of $0.1 million); reduced payment and/or payment deferral (38 contracts; recorded investment of $21.5 million); or a combination of concessions (9 contracts; recorded investment of $6.9 million).

(4) Represents the following concessions: loans restructured through bankruptcy (24 contracts; recorded investment of $5.9 million); reduced payment and/or payment deferral (13 contracts; recorded investment of $4.7 million); temporary rate reduction (2 contracts; recorded investment of $0.3 million); or a combination of concessions (27 contracts; recorded investment of $9.2 million).

(5) Represents the following concessions: loans restructured through bankruptcy (61 contracts; recorded investment of $5.2 million); reduced payment and/or payment deferral (7 contracts; recorded investment of $0.8 million); temporary rate reduction (1 contract; recorded investment of $0.5 million); or a combination of concessions (29 contracts; recorded investment of $3.0 million).

	Year ended December 31, 2014
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		25	$	36.2	$	36.2
Commercial and industrial (2)		50		43.1		43.1
Equipment financing (3)		28		7.1		7.1
Total		103		86.4		86.4
Retail:
Residential mortgage (4)		130		40.3		40.3
Home equity (5)		135		12.2		12.2
Other consumer		—		—		—
Total		265		52.5		52.5
Total		368	$	138.9	$	138.9

(1) Represents the following concessions: extension of term (16 contracts; recorded investment of $13.5 million); reduced payment and/or payment deferral (4 contracts; recorded investment of $1.8 million); temporary rate reduction (1 contract; recorded investment of $18.2 million); or a combination of concessions (4 contracts; recorded investment of $2.7 million).

(2) Represents the following concessions: extension of term (20 contracts; recorded investment of $15.3 million); reduced payment and/or payment deferral (8 contracts; recorded investment of $2.4 million); or a combination of concessions (22 contracts; recorded investment of $25.4 million).

(3) Represents the following concessions: reduced payment and/or payment deferral (11 contracts; recorded investment of $2.0 million); or a combination of concessions (17 contracts; recorded investment of $5.1 million).

(4) Represents the following concessions: loans restructured through bankruptcy (29 contracts; recorded investment of $5.0 million); extension of term (1 contract; recorded investment of $0.6 million); reduced payment and/or payment deferral (32 contracts; recorded investment of $10.0 million); or a combination of concessions (68 contracts; recorded investment of $24.7 million).

(5) Represents the following concessions: loans restructured through bankruptcy (67 contracts; recorded investment of $5.6 million); reduced payment and/or payment deferral (20 contracts; recorded investment of $2.3 million); temporary rate reduction (2 contracts; recorded investment of $0.6 million); or a combination of concessions (46 contracts; recorded investment of $3.7 million).

The following is a summary, by class of loan, of information related to TDRs of originated loans completed within the previous 12 months that subsequently defaulted during the years ended December 31, 2015 and 2014. For purposes of this disclosure, the previous 12 months is measured from January 1 of the respective prior year and a default represents a previously-modified loan that became past due 30 days or more during 2015 or 2014.

	2015				2014
Years ended December 31 (dollars in millions)	Number of Contracts		Recorded Investment as of Period End		Number of Contracts		Recorded Investment as of Period End
Commercial:
Commercial real estate		5	$	3.2		6	$	3.8
Commercial and industrial		4		1.2		4		1.1
Equipment financing		9		4.5		4		0.8
Total		18		8.9		14		5.7
Retail:
Residential mortgage		17		2.6		42		7.8
Home equity		16		1.8		24		1.6
Other consumer		—		—		—		—
Total		33		4.4		66		9.4
Total		51	$	13.3		80	$	15.1

People’s United’s impaired loans consist of certain originated loans, including all TDRs. The following table summarizes, by class of loan, information related to individually-evaluated impaired loans within the originated portfolio.

	2015						2014
As of December 31 (in millions)	Unpaid Principal Balance		Recorded Investment		Related Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Related Allowance for Loan Losses
Without a related allowance for loan losses:
Commercial:
Commercial real estate	$	46.5	$	45.3	$	—	$	57.1	$	55.8	$	—
Commercial and industrial		53.2		50.8		—		51.7		48.6		—
Equipment financing		32.6		26.0		—		30.2		21.4		—
Retail:
Residential mortgage		67.2		60.4		—		65.4		58.9		—
Home equity		23.3		20.5		—		21.3		18.3		—
Other consumer		—		—		—		—		—		—
Total	$	222.8	$	203.0	$	—	$	225.7	$	203.0	$	—
With a related allowance for loan losses:
Commercial:
Commercial real estate	$	18.8	$	14.7	$	1.9	$	52.1	$	27.8	$	4.0
Commercial and industrial		19.2		14.7		3.3		21.4		17.4		3.5
Equipment financing		3.8		3.6		0.3		3.6		3.5		0.1
Retail:
Residential mortgage		14.1		14.0		2.9		15.6		15.3		2.6
Home equity		2.3		2.1		1.0		2.6		2.5		1.3
Other consumer		—		—		—		—		—		—
Total	$	58.2	$	49.1	$	9.4	$	95.3	$	66.5	$	11.5
Total impaired loans:
Commercial:
Commercial real estate	$	65.3	$	60.0	$	1.9	$	109.2	$	83.6	$	4.0
Commercial and industrial		72.4		65.5		3.3		73.1		66.0		3.5
Equipment financing		36.4		29.6		0.3		33.8		24.9		0.1
Total		174.1		155.1		5.5		216.1		174.5		7.6
Retail:
Residential mortgage		81.3		74.4		2.9		81.0		74.2		2.6
Home equity		25.6		22.6		1.0		23.9		20.8		1.3
Other consumer		—		—		—		—		—		—
Total		106.9		97.0		3.9		104.9		95.0		3.9
Total	$	281.0	$	252.1	$	9.4	$	321.0	$	269.5	$	11.5

The following table summarizes, by class of loan, the average recorded investment and interest income recognized on impaired loans for the periods indicated. The average recorded investment amounts are based on month-end balances.

	2015				2014				2013
Years ended December 31 (in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	65.6	$	1.6	$	76.6	$	1.3	$	84.1	$	1.0
Commercial and industrial		71.6		1.8		46.4		1.1		58.5		1.0
Equipment financing		28.0		0.9		28.6		0.7		32.1		1.5
Total		165.2		4.3		151.6		3.1		174.7		3.5
Retail:
Residential mortgage		75.2		1.5		71.8		1.5		55.0		1.1
Home equity		21.2		0.3		18.0		0.2		14.0		0.1
Other consumer		—		—		—		—		—		—
Total		96.4		1.8		89.8		1.7		69.0		1.2
Total	$	261.6	$	6.1	$	241.4	$	4.8	$	243.7	$	4.7

The following tables summarize, by class of loan, aging information for originated loans:

			Past Due
As of December 31, 2015 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	9,667.7	$	15.0	$	14.2	$	29.2	$	9,696.9
Commercial and industrial		7,466.5		13.1		46.8		59.9		7,526.4
Equipment financing		2,886.7		63.9		7.0		70.9		2,957.6
Total		20,020.9		92.0		68.0		160.0		20,180.9
Retail:
Residential mortgage		5,212.9		31.1		25.4		56.5		5,269.4
Home equity		2,098.9		7.1		9.5		16.6		2,115.5
Other consumer		48.2		0.2		0.1		0.3		48.5
Total		7,360.0		38.4		35.0		73.4		7,433.4
Total originated loans	$	27,380.9	$	130.4	$	103.0	$	233.4	$	27,614.3

Included in the “Current” and “30-89 Days” categories above are early non-performing commercial real estate loans, commercial and industrial loans, and equipment financing loans totaling $16.0 million, $15.0 million and $20.5 million, respectively, and $21.8 million of retail loans in the process of foreclosure or bankruptcy. These loans are less than 90 days past due but have been placed on non-accrual status as a result of having been identified as presenting uncertainty with respect to the collectability of interest and principal.

			Past Due
As of December 31, 2014 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	8,908.0	$	17.6	$	34.7	$	52.3	$	8,960.3
Commercial and industrial		6,814.9		32.4		43.8		76.2		6,891.1
Equipment financing		2,793.3		41.0		4.7		45.7		2,839.0
Total		18,516.2		91.0		83.2		174.2		18,690.4
Retail:
Residential mortgage		4,647.3		29.1		25.1		54.2		4,701.5
Home equity		2,079.3		5.0		8.6		13.6		2,092.9
Other consumer		55.8		0.4		0.1		0.5		56.3
Total		6,782.4		34.5		33.8		68.3		6,850.7
Total originated loans	$	25,298.6	$	125.5	$	117.0	$	242.5	$	25,541.1

Included in the “Current” and “30-89 Days” categories above are early non-performing commercial real estate loans, commercial and industrial loans, and equipment financing loans totaling $25.6 million, $29.5 million and $20.7 million, respectively, and $21.8 million of retail loans in the process of foreclosure or bankruptcy. These loans are less than 90 days past due but have been placed on non-accrual status as a result of having been identified as presenting uncertainty with respect to the collectability of interest and principal.

Commercial Credit Quality Indicators

The Company utilizes an internal loan risk rating system as a means of monitoring portfolio credit quality and identifying both problem and potential problem loans. Under the Company’s risk rating system, loans not meeting the criteria for problem and potential problem loans as specified below are considered to be “Pass”-rated loans. Problem and potential problem loans are classified as either “Special Mention,” “Substandard” or “Doubtful.” Loans that do not currently expose the Company to sufficient enough risk of loss to warrant classification as either Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are classified as Special Mention. Substandard loans represent those credits characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful possess all the weaknesses inherent in those classified Substandard with the added characteristic that collection or liquidation in full, on the basis of existing facts, conditions and values, is highly questionable and/or improbable.

Risk ratings on commercial loans are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently, if warranted. The Company’s internal Loan Review function is responsible for independently evaluating the appropriateness of those credit risk ratings in connection with its cyclical reviews, the approach to which is risk-based and determined by reference to underlying portfolio credit quality and the results of prior reviews. Differences in risk ratings noted in conjunction with such periodic portfolio loan reviews, if any, are reported to management each month.

Retail Credit Quality Indicators

Pools of smaller-balance, homogeneous loans with similar risk and loss characteristics are also assessed for probable losses. These loan pools include residential mortgage, home equity and other consumer loans that are not assigned individual loan risk ratings. Rather, the assessment of these portfolios is based upon a consideration of recent historical loss experience, broader portfolio indicators, including trends in delinquencies, non-performing loans and portfolio concentrations, and portfolio-specific risk characteristics, the combination of which determines whether a loan is classified as “High”, “Moderate” or “Low” risk.

The portfolio-specific risk characteristics considered include: (i) collateral values/LTV ratios (above and below 70%); (ii) borrower credit scores under the FICO scoring system (above and below a score of 680); and (iii) other relevant portfolio risk elements such as income verification at the time of underwriting (stated income vs. non-stated income) and the property’s intended use (owner occupied, non-owner occupied, second home, etc.). In classifying a loan as either “High”, “Moderate” or “Low” risk, the combination of each of the aforementioned risk characteristics is considered for that loan, resulting, effectively, in a “matrix approach” to its risk classification. These risk classifications are reviewed quarterly to ensure that they continue to be appropriate in light of changes within the portfolio and/or economic indicators as well as other industry developments.

For example, to the extent LTV ratios exceed 70% (reflecting a weaker collateral position for the Company) or borrower FICO scores are less than 680 (reflecting weaker financial standing and/or credit history of the customer), the loans are considered to have an increased level of inherent loss. As a result, a loan with a combination of these characteristics would generally be classified as “High” risk. Conversely, as LTV ratios decline (reflecting a stronger collateral position for the Company) or borrower FICO scores exceed 680 (reflecting stronger financial standing and/or credit history of the customer), the loans are considered to have a decreased level of inherent loss. A loan with a combination of these characteristics would generally be classified as “Low” risk. This analysis also considers (i) the extent of underwriting that occurred at the time of origination (direct income verification provides further support for credit decisions) and (ii) the property’s intended use (owner-occupied properties are less likely to default compared to ‘investment-type’ non-owner occupied properties, second homes, etc.). Loans not otherwise deemed to be “High” or “Low” risk are classified as “Moderate” risk.

LTV ratios and FICO scores are determined at origination and updated periodically throughout the life of the loan. LTV ratios are updated for loans 90 days past due and FICO scores are updated for the entire portfolio quarterly. The portfolio stratification (“High”, “Moderate” and “Low” risk) and identification of the corresponding credit quality indicators also occurs quarterly.

Commercial and Retail loans are also evaluated to determine whether they are impaired loans, which are included in the tabular disclosures of credit quality indicators that follow.

Acquired Loans Credit Quality Indicators

Upon acquiring a loan portfolio, the Company’s internal Loan Review function undertakes the process of assigning risk ratings to all commercial loans in accordance with the Company’s established policy, which may differ in certain respects from the risk rating policy of the predecessor company. The length of time necessary to complete this process varies based on the size of the acquired portfolio, the quality of the documentation maintained in the underlying loan files and the extent to which the predecessor company followed a risk rating approach comparable to People’s United’s. As a result, while acquired loans are risk rated, there are occasions when such ratings may be deemed “preliminary” until the Company’s re-rating process has been completed.

Acquired loans are initially recorded at fair value, determined based upon an estimate of the amount and timing of both principal and interest cash flows expected to be collected and discounted using a market interest rate. The difference between contractually required principal and interest payments at the acquisition date and the undiscounted cash flows expected to be collected at the acquisition date is referred to as the “nonaccretable difference”, which includes an estimate of future credit losses expected to be incurred over the life of the portfolio. A decrease in the expected cash flows in subsequent periods requires the establishment of an allowance for loan losses at that time. At December 31, 2015 and 2014, the allowance for loan losses on acquired loans was $8.1 million and $10.2 million, respectively.

The following is a summary, by class of loan, of credit quality indicators:

As of December 31, 2015 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,438.6	$	7,153.4	$	2,550.0	$	19,142.0
Special mention		130.6		121.0		119.1		370.7
Substandard		127.7		250.5		288.5		666.7
Doubtful		—		1.5		—		1.5
Total originated loans		9,696.9		7,526.4		2,957.6		20,180.9
Acquired loans:
Pass		260.9		175.9		6.1		442.9
Special mention		20.1		6.6		5.0		31.7
Substandard		49.1		39.8		4.6		93.5
Doubtful		1.8		—		—		1.8
Total acquired loans		331.9		222.3		15.7		569.9
Total	$	10,028.8	$	7,748.7	$	2,973.3	$	20,750.8
As of December 31, 2015 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	2,579.3	$	959.2	$	25.8	$	3,564.3
Moderate risk		2,208.6		651.2		7.9		2,867.7
High risk		481.5		505.1		14.8		1,001.4
Total originated loans		5,269.4		2,115.5		48.5		7,433.4
Acquired loans:
Low risk		97.7		—		—		97.7
Moderate risk		36.2		—		—		36.2
High risk		53.7		38.2		0.9		92.8
Total acquired loans		187.6		38.2		0.9		226.7
Total	$	5,457.0	$	2,153.7	$	49.4	$	7,660.1

As of December 31, 2014 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	8,730.9	$	6,477.4	$	2,481.2	$	17,689.5
Special mention		82.4		114.2		110.6		307.2
Substandard		135.3		297.3		247.2		679.8
Doubtful		11.7		2.2		—		13.9
Total originated loans		8,960.3		6,891.1		2,839.0		18,690.4
Acquired loans:
Pass		302.5		174.5		7.6		484.6
Special mention		20.9		52.8		0.7		74.4
Substandard		113.5		55.0		18.2		186.7
Doubtful		7.1		16.2		—		23.3
Total acquired loans		444.0		298.5		26.5		769.0
Total	$	9,404.3	$	7,189.6	$	2,865.5	$	19,459.4
As of December 31, 2014 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	2,280.6	$	931.5	$	29.5	$	3,241.6
Moderate risk		1,921.6		597.1		8.3		2,527.0
High risk		499.3		564.3		18.5		1,082.1
Total originated loans		4,701.5		2,092.9		56.3		6,850.7
Acquired loans:
Low risk		107.0		—		—		107.0
Moderate risk		50.5		—		—		50.5
High risk		73.0		50.2		1.2		124.4
Total acquired loans		230.5		50.2		1.2		281.9
Total	$	4,932.0	$	2,143.1	$	57.5	$	7,132.6

Acquired Loans

At the respective acquisition dates in 2011 and 2010, on an aggregate basis, the acquired loan portfolio had contractually required principal and interest payments receivable of $7.57 billion; expected cash flows of $7.02 billion; and a fair value (initial carrying amount) of $5.36 billion. The difference between the contractually required principal and interest payments receivable and the expected cash flows ($550.9 million) represented the initial nonaccretable difference. The difference between the expected cash flows and fair value ($1.66 billion) represented the initial accretable yield. Both the contractually required principal and interest payments receivable and the expected cash flows reflect anticipated prepayments, determined based on historical portfolio experience. At December 31, 2015, the outstanding principal balance and carrying amount of the acquired loan portfolio were $901.9 million and $796.6 million, respectively ($1.18 billion and $1.05 billion, respectively, at December 31, 2014). At December 31, 2015, the aggregate remaining nonaccretable difference applicable to acquired loans totaled $82.9 million.

The following table summarizes activity in the accretable yield for the acquired loan portfolio:

Years ended December 31 (in millions)	2015			2014			2013
Balance at beginning of period	$	396.3		$	639.7		$	890.2
Accretion		(55.5	)		(81.0	)		(127.1	)
Reclassification from nonaccretable difference for loans with improved cash flows (1)		1.1			6.7			5.3
Other changes in expected cash flows (2)		(45.9	)		(169.1	)		(128.7	)
Balance at end of period	$	296.0		$	396.3		$	639.7

(1) Results in increased interest accretion as a prospective yield adjustment over the remaining life of the corresponding pool of loans.

(2) Represents changes in cash flows expected to be collected due to factors other than credit (e.g. changes in prepayment assumptions and/or changes in interest rates on variable rate loans), as well as loan sales, modifications and payoffs.

FDIC Loss-Share Receivable

On April 16, 2010, the Bank entered into a definitive purchase and assumption agreement (the “Agreement”) with the FDIC pursuant to which the Bank assumed all of the deposits, certain assets and the banking operations of Butler Bank. The Agreement also provides for loss-share coverage by the FDIC, up to certain limits, on all covered assets (loans and REO). The FDIC is obligated to reimburse the Bank for 80% of any future losses on covered assets up to $34.0 million. The Bank will reimburse the FDIC for 80% of recoveries with respect to losses for which the FDIC paid 80% reimbursement under the loss-sharing coverage.

The asset arising from the loss-sharing coverage, referred to as the “FDIC loss-share receivable” is included in other assets in the Consolidated Statements of Condition. The FDIC loss-share receivable is measured separately from the covered loans because the coverage is not contractually embedded in the loans and is not transferable should the Bank choose to dispose of the covered loans. The FDIC loss-share receivable will be reduced as losses are realized on covered assets and as loss-sharing payments are received from the FDIC. Realized losses in excess of the acquisition date estimates will result in an increase in the FDIC loss-share receivable. Conversely, the FDIC loss-share receivable will be reduced if realized losses are less than the estimates at acquisition. The amount ultimately collected for the FDIC loss-share receivable is dependent upon the performance of the underlying covered assets over time and claims submitted to the FDIC. In the event that losses under the loss-share coverage do not reach expected levels, the Bank has agreed to make a cash payment to the FDIC on approximately the tenth anniversary of the Agreement.

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Goodwill and Other Acquisition-Related Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Acquisition-Related Intangible Assets

NOTE 5 – Goodwill and Other Acquisition-Related Intangible Assets

Goodwill

Changes in the carrying amount of People’s United’s goodwill are summarized as follows for the year ended December 31, 2015. There were no changes in goodwill during 2014.

	Operating Segment
(in millions)	Commercial Banking		Retail Banking		Wealth Management		Total
Balance at December 31, 2014	$	1,222.8	$	681.9	$	49.8	$	1,954.5
Acquisition of insurance brokerage firm		—		—		4.2		4.2
Balance at December 31, 2015	$	1,222.8	$	681.9	$	54.0	$	1,958.7

In October 2015, PUIA acquired Kesten-Brown Insurance, LLC (“Kesten-Brown”), a Connecticut-based insurance brokerage firm that focuses on commercial lines and employee benefits, in an all-cash transaction. In connection with the acquisition, the Company recorded goodwill of $4.2 million, other acquisition-related intangible assets, consisting of insurance relationships, of $5.0 million and a deferred tax asset of $2.9 million.

Acquisitions have been undertaken with the objective of expanding the Company’s business, both geographically and through product offerings, as well as realizing synergies and economies of scale by combining with the acquired entities. For these reasons, a market-based premium was generally paid for the acquired entities which, in turn, resulted in the recognition of goodwill, representing the excess of the respective purchase prices over the estimated fair value of the net assets acquired.

All of People’s United’s tax deductible goodwill was created in transactions in which the Company purchased the assets of the target (as opposed to purchasing the issued and outstanding stock of the target). At December 31, 2015 and 2014, tax deductible goodwill totaled $24.1 million and $13.0 million, respectively, and related, almost entirely, to the Kesten-Brown and Butler Bank acquisitions.

Other Acquisition-Related Intangible Assets

The following is a summary of People’s United’s other acquisition-related intangible assets:

	2015						2014
As of December 31 (in millions)	Gross Amount		Accumulated Amortization		Carrying Amount		Gross Amount		Accumulated Amortization		Carrying Amount
Trade name intangible	$	122.7	$	42.8	$	79.9	$	122.7	$	34.9	$	87.8
Core deposit intangible		143.8		120.0		23.8		143.8		107.3		36.5
Trust relationships		42.7		22.8		19.9		42.7		20.0		22.7
Insurance relationships		36.5		31.0		5.5		31.5		30.5		1.0
Total other acquisition-related intangible assets	$	345.7	$	216.6	$	129.1	$	340.7	$	192.7	$	148.0

Other acquisition-related intangible assets have an original weighted-average amortization period of 14 years. Amortization expense of other acquisition-related intangible assets totaled $23.9 million, $24.8 million and $26.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Scheduled amortization expense attributable to other acquisition-related intangible assets for each of the next five years is as follows: $23.2 million in 2016; $22.1 million in 2017; $10.7 million in 2018; $9.9 million in 2019; and $9.5 million in 2020. There were no impairment losses relating to goodwill or other acquisition-related intangible assets recorded during the years ended December 31, 2015, 2014 and 2013.

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Premises and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Premises and Equipment

NOTE 6 – Premises and Equipment

The components of premises and equipment are summarized below:

As of December 31 (in millions)	2015		2014
Land	$	38.8	$	39.5
Buildings		267.6		269.2
Leasehold improvements		158.2		161.6
Furniture and equipment		225.3		219.0
Total		689.9		689.3
Less: Accumulated depreciation and amortization		432.1		411.5
Total premises and equipment, net	$	257.8	$	277.8

Depreciation and amortization expense included in occupancy and equipment expense in the Consolidated Statements of Income totaled $39.3 million, $39.6 million and $40.3 million for the years ended December 31, 2015, 2014 and 2013, respectively.

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Other Assets and Other Liabilities

12 Months Ended

Dec. 31, 2015

Text Block [Abstract]

Other Assets and Other Liabilities

NOTE 7 – Other Assets and Other Liabilities

The components of other assets are as follows:

As of December 31 (in millions)	2015		2014
Leased equipment	$	194.4	$	180.9
Fair value of derivative financial instruments (notes 18 and 20)		158.2		132.4
Accrued interest receivable		90.6		82.6
Affordable housing investments (note 11)		83.5		69.6
Assets held in trust for supplemental retirement plans (note 16)		36.5		37.1
Receivables arising from securities brokerage and insurance businesses		33.7		34.8
Funded status of defined benefit pension plans (note 16)		26.6		—
Current income tax receivable (note 11)		26.3		21.1
Investment in joint venture (1)		22.0		21.3
Economic development investments		19.8		19.4
Other prepaid expenses		15.3		16.8
Loans in process		13.1		19.6
Repossessed assets		9.5		2.5
REO:
Residential		7.1		13.6
Commercial		5.5		11.0
FDIC loss-share receivable (note 4)		3.5		5.7
Net deferred tax asset (note 11)		1.9		7.0
Other (2)		38.7		44.5
Total other assets	$	786.2	$	719.9

(1) During the quarter ended June 30, 2014, the Bank formed a joint venture with Vantiv, Inc. to provide a comprehensive suite of payment solutions to businesses throughout the Bank’s footprint. The Bank retained a 49% minority interest in the joint venture and recognized a $20.6 million gain, net of related expenses, resulting from its formation. The gain represented the fair value of the Bank’s entire portfolio of merchant contracts that were contributed to the joint venture and which previously had a zero book basis. The investment in the joint venture is accounted for using the equity method of accounting.

(2) During the quarter ended December 31, 2015, the Bank sold its payroll services business and recognized a $9.2 million gain, net of related expenses. The gain represented the fair value of the Bank’s entire portfolio of payroll services customer contracts, which previously had a zero book basis. In connection with this transaction, the Bank recorded a contingent receivable totaling $2.8 million, which is included in other.

The components of other liabilities are as follows:

As of December 31 (in millions)	2015		2014
Fair value of derivative financial instruments (notes 18 and 20)	$	109.5	$	97.0
Liabilities for supplemental retirement plans (note 16)		63.9		60.4
Accrued employee benefits		48.4		42.0
Accrued expenses payable		43.7		55.2
Payables arising from securities brokerage and insurance businesses		34.7		37.6
Other postretirement plan (note 16)		14.0		14.6
Accrued interest payable		13.3		13.7
Liability for unsettled purchases of securities		5.0		91.5
Funded status of defined benefit pension plans (note 16)		—		34.9
Other (1)		49.9		53.7
Total other liabilities	$	382.4	$	500.6

(1) Includes a contingent payable totaling $2.0 million relating to the Kesten-Brown acquisition (see Note 5).

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Deposits

12 Months Ended

Dec. 31, 2015

Banking and Thrift [Abstract]

Deposits

NOTE 8 – Deposits

The following is an analysis of People’s United’s total deposits by product type:

	2015					2014
As of December 31 (dollars in millions)	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Non-interest-bearing	$	6,178.6		—	%	$	5,655.1		—	%
Savings, interest-bearing checking and money market		17,420.7		0.21			15,252.4		0.19
Time deposits maturing:
Within 3 months		991.5		0.69			1,254.3		0.63
After 3 but within 6 months		679.6		0.86			912.5		0.62
After 6 months but within 1 year		1,915.6		1.10			1,306.7		0.79
After 1 but within 2 years		636.1		1.06			1,341.0		1.36
After 2 but within 3 years		153.5		0.98			230.9		1.40
After 3 but within 4 years		101.9		1.46			85.5		1.07
After 4 but within 5 years		339.6		1.81			96.2		1.51
After 5 years		0.3		2.44			3.6		2.45
Total		4,818.1		1.03			5,230.7		0.91
Total deposits	$	28,417.4		0.30	%	$	26,138.2		0.29	%

Time deposits issued in amounts of $100,000 or more totaled $2.1 billion at both December 31, 2015 and 2014. Overdrafts of non-interest-bearing deposit accounts totaling $1.6 million and $2.6 million at December 31, 2015 and 2014, respectively, have been classified as loans.

Interest expense on deposits is summarized as follows:

Years ended December 31 (in millions)	2015		2014		2013
Savings, interest-bearing checking and money market	$	43.5	$	36.7	$	33.0
Time		52.0		44.2		48.1
Total	$	95.5	$	80.9	$	81.1

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Borrowings

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Borrowings

NOTE 9 – Borrowings

People’s United’s borrowings are summarized as follows:

	2015					2014
As of December 31 (dollars in millions)	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Fixed-rate FHLB advances maturing:
Within 1 month	$	2,750.0		0.44	%	$	1,825.0		0.26	%
After 1 month but within 1 year		450.0		0.57			200.2		0.24
After 2 but within 3 years		258.6		2.71			—		—
After 3 but within 4 years		—		—			261.1		2.71
After 5 years		5.2		1.34			5.4		1.33
Total FHLB advances		3,463.8		0.63			2,291.7		0.54
Customer repurchase agreements maturing:
Within 1 month		469.5		0.19			486.0		0.18
Total customer repurchase agreements		469.5		0.19			486.0		0.18
Federal funds purchased maturing:
Within 1 month		374.0		0.32			913.0		0.15
Total federal funds purchased		374.0		0.32			913.0		0.15
Other borrowings maturing:
Within 1 year		—		—			1.0		1.75
Total other borrowings		—		—			1.0		1.75
Total borrowings	$	4,307.3		0.55	%	$	3,691.7		0.39	%

At December 31, 2015, the Bank’s total borrowing capacity from (i) the FHLB of Boston and the FRB-NY for advances and (ii) repurchase agreements was $10.5 billion based on the level of qualifying collateral available for these borrowings. In addition, the Bank had unsecured borrowing capacity of $1.1 billion at that date. FHLB advances are secured by the Bank’s investment in FHLB stock and by a security agreement that requires the Bank to maintain, as collateral, sufficient qualifying assets not otherwise pledged (principally single-family residential mortgage loans, home equity lines of credit and loans, and commercial real estate loan.

Interest expense on borrowings consists of the following:

Years ended December 31 (in millions)	2015		2014		2013
FHLB advances	$	9.8	$	9.2	$	8.2
Customer repurchase agreements		0.9		1.0		1.1
Federal funds purchased		0.8		0.8		1.2
Other borrowings		—		0.1		—
Total	$	11.5	$	11.1	$	10.5

Information concerning People’s United’s borrowings is presented below:

As of and for the years ended December 31 (dollars in millions)	2015			2014			2013
FHLB advances:
Balance at year end	$	3,463.8		$	2,291.7		$	3,719.8
Average outstanding during the year		2,306.6			2,593.7			2,043.9
Maximum outstanding at any month end		3,463.8			3,419.5			3,719.8
Average interest rate during the year		0.42	%		0.36	%		0.40	%
Customer repurchase agreements:
Balance at year end	$	469.5		$	486.0		$	501.2
Carrying amount of collateral securities at year end		478.9			495.7			511.2
Average outstanding during the year		463.6			482.0			522.7
Maximum outstanding at any month end		504.5			519.2			581.2
Average interest rate during the year		0.19	%		0.20	%		0.20	%
Federal funds purchased:
Balance at year end	$	374.0		$	913.0		$	825.0
Average outstanding during the year		411.0			471.8			641.2
Maximum outstanding at any month end		582.0			960.0			934.0
Average interest rate during the year		0.19	%		0.17	%		0.19	%
Other borrowings:
Balance at year end	$	—		$	1.0		$	11.0
Carrying amount of collateral securities at year end		—			1.1			1.1
Average outstanding during the year		0.6			57.1			3.9
Maximum outstanding at any month end		1.0			206.2			11.0
Average interest rate during the year		1.76	%		0.25	%		0.51	%

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Notes and Debentures

12 Months Ended

Dec. 31, 2015

Brokers and Dealers [Abstract]

Notes and Debentures

NOTE 10 – Notes and Debentures

Notes and debentures are summarized as follows:

As of December 31 (in millions)	2015		2014
People’s United Financial, Inc.:
3.65% senior notes due 2022	$	498.8	$	498.6
5.80% fixed rate/floating rate subordinated notes due 2017		123.7		122.5
People’s United Bank:
4.00% subordinated notes due 2024		416.2		412.4
Total notes and debentures	$	1,038.7	$	1,033.5

The 3.65% senior notes represent fixed-rate unsecured and unsubordinated obligations of People’s United with interest payable semi-annually. The Company may redeem the senior notes at its option, in whole or in part, at any time prior to September 6, 2022, at a redemption price equal to the greater of (i) 100% of the principal amount of the senior notes to be redeemed or (ii) a “make-whole” amount, plus in either case accrued and unpaid interest to the redemption date. In addition, the Company may redeem the senior notes at its option, in whole or in part, at any time on or following September 6, 2022, at a redemption price equal to 100% of the principal amount of the senior notes to be redeemed, plus accrued and unpaid interest to the redemption date.

People’s United assumed the 5.80% fixed rate/floating rate subordinated notes in connection with its acquisition of Chittenden Corporation (“Chittenden”). These subordinated notes, which were issued in 2007 and are due in February 2017, represent unsecured general obligations of People’s United with interest payable semi-annually. The notes had a coupon of 5.80% for the first five years and converted to a variable rate in year six that is tied to the three month LIBOR plus 68.5 basis points. At December 31, 2015, the interest rate was 1.05%. In 2011, People’s United entered into an interest rate swap to hedge the LIBOR-based floating rate payments on these subordinated notes, which began in February 2012 (see Note 20). People’s United has the option to redeem the notes, in whole or in part, on any interest payment date at a redemption price of 100% of the principal amount of the redeemed notes, plus any accrued but unpaid interest.

The 4.00% subordinated notes represent fixed-rate unsecured and subordinated obligations of the Bank with interest payable semi-annually. The Bank may redeem the notes, in whole or in part, on or after April 16, 2024 at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The Bank may redeem the notes in whole, but not in part, at its option at a redemption price equal to 100% of the principal amount of the notes together with accrued but unpaid interest to, but excluding, the date fixed for redemption, within 90 days of the occurrence of a “regulatory event” (as defined). Pursuant to capital regulations of the OCC, effective January 1, 2015, the Bank may not redeem the notes prior to maturity without the prior approval of the OCC. The Bank has entered into a pay floating/receive fixed interest rate swap to hedge the change in fair value of the subordinated notes due to changes in interest rates (see Note 20). For regulatory capital purposes, subordinated note issuances qualify, up to certain limits, as Tier 2 capital for both People’s United’s and the Bank’s Total risk-based capital (see Note 13).

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Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 11 – Income Taxes

The following is a summary of total income tax expense:

Years ended December 31 (in millions)	2015			2014			2013
Income tax expense applicable to pre-tax income	$	130.4		$	128.9		$	115.2
Income tax benefit applicable to items reported in total other comprehensive loss (note 15)		(5.3	)		(6.7	)		(34.6	)
Total	$	125.1		$	122.2		$	80.6

The components of income tax expense applicable to pre-tax income are summarized as follows:

Years ended December 31 (in millions)	2015		2014		2013
Current tax expense:
Federal	$	103.6	$	111.9	$	89.9
State		12.7		10.3		9.8
Total current tax expense		116.3		122.2		99.7
Deferred tax expense (1)		14.1		6.7		15.5
Total income tax expense	$	130.4	$	128.9	$	115.2

(1) Includes the effect of decreases in the valuation allowance for state deferred tax assets of $0.1 million, $1.2 million and $2.3 million in 2015, 2014 and 2013, respectively.

The following is a reconciliation of expected income tax expense, computed at the U.S. federal statutory rate of 35%, to actual income tax expense:

Years ended December 31 (dollars in millions)	2015			2014			2013
Expected income tax expense	$	136.7		$	133.2		$	121.7
State income tax, net of federal tax effect		9.3			8.2			7.3
Tax-exempt interest		(16.4	)		(13.2	)		(11.7	)
Tax-exempt income from BOLI		(1.6	)		(2.0	)		(1.6	)
Federal income tax credits		(0.4	)		0.8			(3.0	)
Other, net		2.8			1.9			2.5
Actual income tax expense	$	130.4		$	128.9		$	115.2
Effective income tax rate		33.4	%		33.9	%		33.1	%

People’s United holds ownership interests in limited partnerships formed to develop and operate affordable housing units for lower income tenants throughout its franchise area. The underlying partnerships, which are considered variable interest entities, are not consolidated into the Company’s Consolidated Financial Statements. These investments have historically played a role in enabling the Bank to meet its Community Reinvestment Act requirements while, at the same time, providing federal income tax credits.

The balance of the Company’s affordable housing investments reflected in the Consolidated Statement of Condition at December 31, 2015 totaled $83.5 million (included in other assets). Future contingent commitments (capital calls) related to such investments, the timing of which cannot be reasonably estimated, totaled $74.9 million at that date. The cost of the Company’s investments is amortized on a straight-line basis over the period during which the related federal income tax credits are realized (generally ten years). Amortization expense, which is included as a component of income tax expense, totaled $12.6 million, $10.7 million and $8.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.

In 1998, the Bank formed a passive investment company, People’s Mortgage Investment Company, in accordance with Connecticut tax laws, which permit transfers of mortgage loans to such subsidiaries on or after January 1, 1999. The related earnings of the subsidiary, and any dividends it pays to the parent, are not subject to Connecticut income tax. As a result of the exclusion of such earnings and dividends from Connecticut taxable income beginning in 1999, the Bank has established a valuation allowance for the full amount of its Connecticut deferred tax asset attributable to net temporary differences and state net operating loss carryforwards. Connecticut tax net operating loss carryforwards totaled $1.4 billion at December 31, 2015 and expire between 2020 and 2035.

The tax effects of temporary differences that give rise to People’s United’s deferred tax assets and liabilities are as follows:

As of December 31 (in millions)	2015			2014
Deferred tax assets:
Leasing activities	$	101.5		$	87.1
Allowance for loan losses and non-accrual interest		82.7			77.4
State tax net operating loss carryforwards, net of federal tax effect		68.0			67.2
Equity-based compensation		22.9			22.0
Pension and other postretirement benefits		12.2			35.8
Unrealized loss on securities transferred to held to maturity		12.0			13.1
Unrealized loss on securities available for sale		10.8			2.3
Basis difference in affordable housing investments		—			3.1
Other deductible temporary differences		35.1			32.6
Total deferred tax assets		345.2			340.6
Less: valuation allowance for state deferred tax assets		(68.0	)		(68.1	)
Total deferred tax assets, net of the valuation allowance		277.2			272.5
Deferred tax liabilities:
Tax over book depreciation		(185.4	)		(160.3	)
Acquisition-related deferred tax liabilities		(39.9	)		(51.0	)
Book over tax income recognized on consumer loans		(14.6	)		(12.4	)
Deferred cancellation-of-indebtedness income		(13.4	)		(17.5	)
Mark-to-market and original issue discounts for tax purposes		(7.3	)		(7.7	)
Temporary differences related to merchant services joint venture		(6.8	)		(7.2	)
Other taxable temporary differences		(7.9	)		(9.4	)
Total deferred tax liabilities		(275.3	)		(265.5	)
Net deferred tax asset	$	1.9		$	7.0

Based on People’s United’s recent historical and anticipated future pre-tax earnings and the reversal of taxable temporary differences, management believes it is more likely than not that People’s United will realize its total deferred tax assets, net of the valuation allowance.

People’s United’s current income tax receivable at December 31, 2015 and 2014 totaled $26.3 million and $21.1 million, respectively.

The following is a reconciliation of the beginning and ending balances of People’s United’s unrecognized income tax benefits related to uncertain tax positions:

Years ended December 31 (in millions)	2015			2014			2013
Balance at beginning of year	$	3.0		$	3.0		$	2.9
Additions for tax positions taken in prior years		0.1			0.1			0.1
Reductions for tax positions taken in prior years		—			—			—
Reductions attributable to audit settlements/lapse of statute of limitations		(0.4	)		(0.1	)		—
Balance at end of year	$	2.7		$	3.0		$	3.0

If recognized, the unrecognized income tax benefits at December 31, 2015 would minimally affect People’s United’s annualized income tax rate. Accrued interest expense related to the unrecognized income tax benefits totaled $0.6 million and $0.7 million at December 31, 2015 and 2014, respectively. People’s United recognizes accrued interest related to unrecognized income tax benefits and penalties, if incurred, as components of income tax expense in the Consolidated Statements of Income. The amount of total unrecognized income tax benefits is not expected to change significantly within the next twelve months.

People’s United files a consolidated U.S. Federal income tax return and various state income tax returns and is no longer subject to federal or state income tax examinations through 2011.

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Stockholders' Equity and Dividends

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity and Dividends

NOTE 12 – Stockholders’ Equity and Dividends

People’s United is authorized to issue 50 million shares of preferred stock, par value of $0.01 per share, none of which were outstanding as of December 31, 2015, and 1.95 billion shares of common stock, par value of $0.01 per share, of which 399.2 million shares were issued as of December 31, 2015.

Treasury stock includes (i) common stock repurchased by People’s United, either directly or through agents, in the open market at prices and terms satisfactory to management in connection with stock repurchases authorized by its Board of Directors and (ii) common stock purchased in the open market by a trustee with funds provided by People’s United and originally intended for awards under the People’s United Financial, Inc. 2007 Recognition and Retention Plan (the “RRP”). Following shareholder approval of the People’s United Financial, Inc. 2014 Long-Term Incentive Plan (the “2014 Plan”) in the second quarter of 2014, no new awards may be granted under the RRP (see Note 17).

In November 2012, People’s United’s Board of Directors authorized the repurchase of common stock. Under this repurchase authorization, up to 10% of the Company’s common stock outstanding, or 33.6 million shares, were to be repurchased, either directly or through agents, in the open market at prices and terms satisfactory to management. During 2013, the Company completed the repurchase of shares authorized at a total cost of $458.9 million.

In April 2007, People’s United established an Employee Stock Ownership Plan (the “ESOP”) (see Note 16). At that time, People’s United loaned the ESOP $216.8 million to purchase 10.5 million shares of People’s United common stock in the open market. Shares of People’s United common stock are held by the ESOP and allocated to eligible participants annually based upon a percentage of each participant’s eligible compensation. At December 31, 2015, 7.3 million shares of People’s United common stock, with a contra-equity balance of $151.8 million, have not been allocated or committed to be released.

Dividends declared and paid per common share totaled $0.6675, $0.6575 and $0.6475 for the years ended December 31, 2015, 2014 and 2013, respectively. People’s United’s dividend payout ratio (dividends paid as a percentage of net income) was 77.3%, 78.2% and 88.1% for the years ended December 31, 2015, 2014 and 2013, respectively.

In the ordinary course of business, People’s United is dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and other general corporate purposes. People’s United’s ability to pay cash dividends is governed by federal law, regulations and related guidance. The Bank’s ability to pay cash dividends directly or indirectly to People’s United also is governed by federal law and regulations. These provide that the Bank must receive OCC approval to declare a dividend if the total amount of all dividends (common and preferred), including the proposed dividend, declared by the Bank in any current year exceeds the total of the Bank’s net income for the current year to date, combined with its retained net income for the previous two years, less the sum of any transfers required by the OCC and any transfers required to be made to a fund for the retirement of any preferred stock. The term “retained net income” as defined by federal regulations means the Bank’s net income for a specified period less the total amount of all dividends declared in that period.

The Bank may not pay dividends to People’s United if, after paying those dividends, it would fail to meet the required minimum levels under risk-based capital guidelines or if the OCC has notified the Bank that it is in need of more than normal supervision. See Note 13 for a discussion of regulatory capital requirements. Under the Federal Deposit Insurance Act, an insured depository institution such as the Bank is prohibited from making capital distributions, including the payment of dividends, if, after making such distribution, the institution would become “undercapitalized” (as such term is used in the Federal Deposit Insurance Act). Payment of dividends by the Bank also may be restricted at any time at the discretion of the appropriate regulator if it deems the payment to constitute an unsafe and unsound banking practice.

In 2015, 2014 and 2013, the Bank paid a total of $245.0 million, $244.0 million and $232.0 million, respectively, in cash dividends to People’s United (parent company). At December 31, 2015, the Bank’s retained net income, as defined by federal regulations, totaled $24.3 million.

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Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2015

Banking and Thrift [Abstract]

Regulatory Capital Requirements

NOTE 13 – Regulatory Capital Requirements

Bank holding companies and banks are subject to various regulations regarding capital requirements administered by U.S. banking agencies. The FRB (in the case of a bank holding company) and the OCC (in the case of a bank) may initiate certain actions if a bank holding company or a bank fails to meet minimum capital requirements. In addition, under its prompt corrective action regulations, the OCC is required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized bank. These actions could have a direct material effect on a bank’s financial statements. People’s United and the Bank are subject to regulatory capital requirements administered by the FRB and the OCC, respectively.

People’s United and the Bank are both subject to new capital rules (the “Basel III capital rules”) issued by U.S. banking agencies that became effective on January 1, 2015. The Basel III capital rules, among other things: (i) introduces as a new capital measure “Common Equity Tier 1” (“CET1”) capital; (ii) specifies that Tier 1 capital consists of CET1 capital and “Additional Tier 1 Capital” instruments meeting specified requirements; (iii) defines CET1 capital narrowly by requiring that most adjustments to regulatory capital measures be made to CET1 capital and not to the other components of capital; and (iv) expands the scope of the adjustments as compared to prior regulations.

When fully phased-in on January 1, 2019, Basel III capital rules will require financial institutions to maintain: (i) as a newly adopted international standard, a minimum ratio of CET1 capital to total risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% CET1 capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum ratio of CET1 capital to total risk-weighted assets of at least 7.0%); (ii) a minimum ratio of Tier 1 capital to total risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation); (iii) a minimum ratio of Total (that is, Tier 1 plus Tier 2) capital to total risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% Total capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum Total capital ratio of 10.5% upon full implementation); and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average total assets, as defined.

The foregoing capital ratios are based in part on specific quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting guidelines. Capital amounts and classifications are also subject to qualitative judgments by federal regulators about capital components, risk weightings and other factors.

Management believes that, as of December 31, 2015, People’s United and the Bank met all capital adequacy requirements to which each is subject. Further, the most recent regulatory notification categorized the Bank as a well-capitalized institution under the prompt corrective action regulations. Since that notification, no conditions or events have occurred that have caused management to believe any change in the Bank’s capital classification would be warranted.

The following summary compares People’s United’s and the Bank’s regulatory capital amounts and ratios under the Basel III capital rules. The minimum capital required amounts as of December 31, 2015 are based on the phase-in provisions of the Basel III capital rules. In connection with the adoption of the Basel III capital rules, both the Company and the Bank elected to opt-out of the requirement to include most components of AOCL in CET1 capital. At December 31, 2015, People’s United’s and the Bank’s total risk-weighted assets, as defined, both were $29.6 billion.

	As of December 31, 2015					Minimum Capital Required Basel III Phase-In  (2015)					Classification as Well-Capitalized
(dollars in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 Leverage (1):
People’s United		2,898.1		8.0	%	$	1,440.6		4.0	%	$	1,800.8		5.0	%
Bank		3,012.7		8.4			1,431.9		4.0			1,789.8		5.0
Common Equity Tier 1 Capital (2):
People’s United		2,898.1		9.8			1,620.7		4.5			2,341.0		6.5
Bank		3,012.7		10.2			1,610.9		4.5			2,326.8		6.5
Tier 1 Risk-Based Capital (3):
People’s United		2,898.1		9.8			1,778.8		6.0			2,371.7		8.0
Bank		3,012.7		10.2			1,777.3		6.0			2,369.7		8.0
Total Risk-Based Capital (4):
People’s United		3,470.5		11.7			2,371.7		8.0			2,964.6		10.0
Bank		3,726.3		12.6			2,369.7		8.0			2,962.1		10.0

(1) Tier 1 Leverage ratio represents Tier 1 Capital divided by Average Total Assets (less goodwill, other acquisition-related intangibles and other deductions from Common Equity Tier 1 Capital).

(2) Common Equity Tier 1 Capital ratio represents equity capital, as defined, less: (i) after-tax net unrealized gains (losses) on certain securities classified as available for sale; (ii) after-tax net unrealized gains (losses) on securities transferred to held to maturity; (iii) goodwill and other acquisition-related intangible assets; and (iv) the amount recorded in AOCL relating to pension and other postretirement benefits divided by Total Risk-Weighted Assets.

(3) Tier 1 Risk-Based Capital ratio represents Common Equity Tier 1 Capital plus Additional Tier 1 Capital instruments (together, “Tier 1 Capital”) divided by Total Risk-Weighted Assets.

(4) Total Risk-Based Capital ratio represents Tier 1 Capital plus subordinated notes and debentures, up to certain limits, and the allowance for loan losses, up to 1.25% of Total Risk-Weighted Assets, divided by Total Risk-Weighted Assets.

Management currently estimates that, as of December 31, 2015, the Company’s and the Bank’s risk-based capital ratios could be negatively impacted by as much as 25-35 basis points on a “fully phased-in” basis compared to the ratios at December 31, 2015.

The following summary compares the Bank’s regulatory capital amounts and ratios to the OCC’s requirements for classification as a well-capitalized institution and for minimum capital adequacy (capital rules in effect through December 31, 2014). At December 31, 2014, the Bank’s adjusted total assets, as defined, were $34.0 billion and its total risk-weighted assets, as defined, were $27.5 billion. At December 31, 2014, the Bank exceeded each of its regulatory capital requirements.

							OCC Requirements
	People’s United Bank						Classification as Well-Capitalized					Minimum Capital Adequacy
(dollars in millions)	Amount			Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2014
Tangible capital	$	2,881.5	(1)		8.5	%		n/a		n/a		$	510.3		1.5	%
Leverage (core) capital		2,881.5	(1)		8.5		$	1,700.9		5.0	%		1,360.8		4.0
Risk-based capital:
Tier 1		2,881.5	(1)		10.5			1,647.3		6.0			1,098.2		4.0
Total		3,582.2	(2)		13.0			2,745.4		10.0			2,196.3		8.0

(1) Represents the Bank’s total equity capital, excluding: (i) after-tax net unrealized gains and losses on certain securities classified as available for sale; (ii) after-tax net unrealized gains and losses on securities transferred to held to maturity; (iii) after-tax net unrealized gains and losses on derivatives accounted for as cash flow hedges; (iv) certain assets not recognized for regulatory capital purposes (principally goodwill and other acquisition-related intangible assets); and (v) the amount recorded in AOCL relating to pension and other postretirement benefits.

(2) Represents Tier 1 capital plus qualifying subordinated notes and debentures, up to certain limits, and the allowance for loan losses up to 1.25% of total risk-weighted assets.

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Earnings Per Common Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Common Share

NOTE 14 – Earnings Per Common Share

The following is an analysis of People’s United’s basic and diluted EPS, reflecting the application of the two-class method, as described in Note 1:

Years ended December 31 (in millions, except per share data)	2015			2014			2013
Net income	$	260.1		$	251.7		$	232.4
Dividends and undistributed earnings allocated to participating securities		(1.1	)		(1.2	)		(1.2	)
Income attributable to common shareholders	$	259.0		$	250.5		$	231.2
Average common shares outstanding for basic EPS		300.4			298.2			311.9
Effect of dilutive equity-based awards		—			0.1			0.1
Average common and common-equivalent shares for diluted EPS		300.4			298.3			312.0
Basic EPS	$	0.86		$	0.84		$	0.74
Diluted EPS	$	0.86		$	0.84		$	0.74

All unallocated ESOP common shares and all common shares accounted for as treasury shares have been excluded from the calculation of basic and diluted EPS. Anti-dilutive equity-based awards totaling 19.7 million shares, 17.7 million shares and 14.0 million shares for the years ended December 31, 2015, 2014 and 2013, respectively, have been excluded from the calculation of diluted EPS.

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Comprehensive Income

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Comprehensive Income

NOTE 15 – Comprehensive Income

Comprehensive income represents the sum of net income and items of “other comprehensive income or loss,” including (on an after-tax basis): (i) net actuarial gains and losses, prior service credits and costs, and transition assets and obligations related to pension and other postretirement plans; (ii) net unrealized gains and losses on securities available for sale; (iii) net unrealized gains and losses on securities transferred to held to maturity; and (iv) net unrealized gains and losses on derivatives accounted for as cash flow hedges. People’s United’s total comprehensive income for the years ended December 31, 2015, 2014 and 2013 is reported in the Consolidated Statements of Comprehensive Income.

The following is a summary of the changes in the components of AOCL, which are included in People’s United’s stockholders’ equity on an after-tax basis:

(in millions)	Pension and Other Postretirement Plans			Net Unrealized Gains (Losses) on Securities Available for Sale			Net Unrealized Gains (Losses) on Securities Transferred to Held to Maturity			Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges			Total Accumulated Other Comprehensive Loss
Balance at December 31, 2012	$	(148.2	)	$	52.8		$	—		$	(1.5	)	$	(96.9	)
Other comprehensive income (loss) before reclassifications		58.3			(99.3	)		(23.3	)		0.5			(63.8	)
Amounts reclassified from AOCL (1)		4.9			—			—			0.7			5.6
Current period other comprehensive income (loss)		63.2			(99.3	)		(23.3	)		1.2			(58.2	)
Balance at December 31, 2013		(85.0	)		(46.5	)		(23.3	)		(0.3	)		(155.1	)
Other comprehensive income (loss) before reclassifications		(62.6	)		44.6			—			(0.6	)		(18.6	)
Amounts reclassified from AOCL (1)		4.7			(1.8	)		1.8			0.8			5.5
Current period other comprehensive income (loss)		(57.9	)		42.8			1.8			0.2			(13.1	)
Balance at December 31, 2014		(142.9	)		(3.7	)		(21.5	)		(0.1	)		(168.2	)
Other comprehensive income (loss) before reclassifications		(2.2	)		(14.0	)		—			(0.7	)		(16.9	)
Amounts reclassified from AOCL (1)		5.1			—			2.0			0.8			7.9
Current period other comprehensive income (loss)		2.9			(14.0	)		2.0			0.1			(9.0	)
Balance at December 31, 2015	$	(140.0	)	$	(17.7	)	$	(19.5	)	$	—		$	(177.2	)

(1) See the following table for details about these reclassifications.

The following is a summary of the amounts reclassified from AOCL:

Years ended December 31 (in millions)	Amounts Reclassified from  AOCL									Affected Line Item in the Statement Where Net Income is Presented
	2015			2014			2013
Details about components of AOCL:
Amortization of pension and other postretirement plans items:
Net actuarial loss	$	(9.1	)	$	(8.4	)	$	(8.8	)	(1)
Prior service credit		1.0			1.0			1.1		(1)
		(8.1	)		(7.4	)		(7.7	)	Income before income tax expense
		3.0			2.7			2.8		Income tax expense
		(5.1	)		(4.7	)		(4.9	)	Net income
Reclassification adjustment for net realized gains on securities available for sale		—			3.0			—		Income before income tax expense (2)
		—			(1.2	)		—		Income tax expense
		—			1.8			—		Net income
Amortization of unrealized losses on securities transferred to held to maturity		(3.1	)		(3.0	)		—		Income before income tax expense (3)
		1.1			1.2			—		Income tax expense
		(2.0	)		(1.8	)		—		Net income
Amortization of unrealized gains and losses on cash flow hedges:
Interest rate swaps		(1.3	)		(1.4	)		(1.3	)	(4)
Interest rate locks		0.1			0.1			0.1		(4)
		(1.2	)		(1.3	)		(1.2	)	Income before income tax expense
		0.4			0.5			0.5		Income tax expense
		(0.8	)		(0.8	)		(0.7	)	Net income
Total reclassifications for the period	$	(7.9	)	$	(5.5	)	$	(5.6	)

(1) Included in the computation of net periodic benefit income (expense) reflected in compensation and benefits expense (see Note 16 for additional details).

(2) Included in non-interest income.

(3) Included in interest and dividend income – securities.

(4) Included in interest expense – notes and debentures.

Deferred income taxes applicable to the components of AOCL are as follows:

As of December 31 (in millions)	2015		2014		2013
Net actuarial loss and other amounts related to pension and         other postretirement plans	$	81.5	$	83.2	$	50.0
Net unrealized loss on securities available for sale		10.3		2.2		27.3
Net unrealized loss on securities transferred to held to maturity		11.4		12.5		13.7
Net unrealized loss on derivatives accounted for as cash flow hedges		—		—		0.2
Total deferred income taxes	$	103.2	$	97.9	$	91.2

The following is a summary of the components of People’s United’s total other comprehensive loss:

	Pre-Tax						After-Tax
Year ended December 31, 2015 (in millions)	Amount			Tax Effect			Amount
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial loss arising during the year	$	(3.5	)	$	1.3		$	(2.2	)
Reclassification adjustment for net actuarial loss included in net income		9.1			(3.4	)		5.7
Net actuarial gain		5.6			(2.1	)		3.5
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.0	)		0.4			(0.6	)
Net actuarial gain and prior service credit		4.6			(1.7	)		2.9
Net unrealized gains and losses on securities available for sale:
Net unrealized holding losses arising during the year		(22.1	)		8.1			(14.0	)
Net unrealized losses		(22.1	)		8.1			(14.0	)
Net unrealized gains and losses on securities transferred to held to maturity:
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income		3.1			(1.1	)		2.0
Net unrealized gains		3.1			(1.1	)		2.0
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized losses arising during the year		(1.1	)		0.4			(0.7	)
Reclassification adjustment for net realized losses included in net income		1.2			(0.4	)		0.8
Net unrealized gains		0.1			—			0.1
Total other comprehensive loss	$	(14.3)		$	5.3		$	(9.0	)

	Pre-Tax						After-Tax
Year ended December 31, 2014 (in millions)	Amount			Tax Effect			Amount
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial loss arising during the year	$	(98.5	)	$	35.9		$	(62.6	)
Reclassification adjustment for net actuarial loss included in net income		8.4			(3.1	)		5.3
Net actuarial loss		(90.1	)		32.8			(57.3	)
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.0	)		0.4			(0.6	)
Net actuarial loss and prior service credit		(91.1	)		33.2			(57.9	)
Net unrealized gains and losses on securities available for sale:
Net unrealized holding gains arising during the year		70.9			(26.3	)		44.6
Reclassification adjustment for net realized gains included in net income		(3.0	)		1.2			(1.8	)
Net unrealized gains		67.9			(25.1	)		42.8
Net unrealized gains and losses on securities transferred to held to maturity:
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income		3.0			(1.2	)		1.8
Net unrealized gains		3.0			(1.2	)		1.8
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized losses arising during the year		(0.9	)		0.3			(0.6	)
Reclassification adjustment for net realized losses included in net income		1.3			(0.5	)		0.8
Net unrealized gains		0.4			(0.2	)		0.2
Total other comprehensive loss	$	(19.8	)	$	6.7		$	(13.1	)

	Pre-Tax						After-Tax
Year ended December 31, 2013 (in millions)	Amount			Tax Effect			Amount
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial gain arising during the year	$	92.0		$	(33.7	)	$	58.3
Reclassification adjustment for net actuarial loss included in net income		8.8			(3.2	)		5.6
Net actuarial gain		100.8			(36.9	)		63.9
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.1	)		0.4			(0.7	)
Net actuarial gain and prior service credit		99.7			(36.5	)		63.2
Net unrealized gains and losses on securities available for sale:
Net unrealized holding losses arising during the year		(194.4	)		58.1			(136.3	)
Unrealized holding losses on securities transferred during the year		37.0			—			37.0
Net unrealized losses		(157.4	)		58.1			(99.3	)
Net unrealized gains and losses on securities transferred to held to maturity:
Unrealized holding losses on securities transferred during the year		(37.0	)		13.7			(23.3	)
Net unrealized losses		(37.0	)		13.7			(23.3	)
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized gains arising during the year		0.7			(0.2	)		0.5
Reclassification adjustment for net realized losses included in net income		1.2			(0.5	)		0.7
Net unrealized gains		1.9			(0.7	)		1.2
Total other comprehensive loss	$	(92.8	)	$	34.6		$	(58.2	)

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

NOTE 16 – Employee Benefit Plans

People’s United Employee Pension and Other Postretirement Plans

People’s United maintains a qualified noncontributory defined benefit pension plan (the “People’s Qualified Plan”) that covers substantially all full-time and part-time employees who (i) meet certain age and length of service requirements and (ii) were employed by the Bank prior to August 14, 2006. Benefits are based upon the employee’s years of credited service and either the average compensation for the last five years or the average compensation for the five consecutive years of the last ten years that produce the highest average.

New employees of the Bank starting on or after August 14, 2006 are not eligible to participate in the People’s Qualified Plan. Instead, the Bank makes contributions on behalf of these employees to a qualified defined contribution plan in an annual amount equal to 3% of the employee’s eligible compensation. Employee participation in this plan is restricted to employees who (i) are at least 18 years of age and (ii) worked at least 1,000 hours in a year. Both full-time and part-time employees are eligible to participate as long as they meet these requirements.

In July 2011, the Bank amended the People’s Qualified Plan to “freeze”, effective December 31, 2011, the accrual of pension benefits for People’s Qualified Plan participants. As such, participants will not earn any additional benefits after that date. Instead, effective January 1, 2012, the Bank began making contributions on behalf of these participants to a qualified defined contribution plan in an annual amount equal to 3% of the employee’s eligible compensation.

In addition to the People’s Qualified Plan, People’s United continues to maintain a qualified defined benefit pension plan that covers former Chittenden employees who meet certain eligibility requirements (the “Chittenden Qualified Plan”). Effective December 31, 2005, accrued benefits were frozen based on participants’ then-current service and pay levels. Interest continues to be credited on undistributed balances at a crediting rate specified by the Chittenden Qualified Plan. During April 2010, participants who were in payment status as of April 1, 2010, or whose accrued benefit as of that date was scheduled to be paid in the form of an annuity commencing May 1, 2010 based upon elections made by April 15, 2010, were transferred into the People’s Qualified Plan.

People’s United also maintains (i) unfunded, nonqualified supplemental plans to provide retirement benefits to certain senior officers (the “Supplemental Plans”) and (ii) an unfunded plan that provides retirees with optional medical, dental and life insurance benefits (the “Other Postretirement Plan”). People’s United accrues the cost of these postretirement benefits over the employees’ years of service to the date of their eligibility for such benefit.

An employer is required to recognize an asset or a liability for the funded status of pension and other postretirement plans. The funded status is measured as the difference between the fair value of plan assets and the applicable benefit obligation, which is the projected benefit obligation for a pension plan and the accumulated postretirement benefit obligation for an other postretirement plan. Plan assets and benefit obligations are required to be measured as of the date of the employer’s fiscal year-end.

The following table summarizes changes in the benefit obligations and plan assets of the People’s Qualified Plan, the Chittenden Qualified Plan and the Supplemental Plans (together the “Pension Plans”) and the Other Postretirement Plan. The table also shows the funded status (or the difference between benefit obligations and plan assets) recognized in the Consolidated Statements of Condition. All plans have a December 31 measurement date.

	Pension Plans						Other Postretirement Plan
(in millions)	2015			2014			2015			2014
Benefit obligations: (1)
Beginning of year	$	515.3		$	430.5		$	14.6		$	10.3
Service cost		—			—			0.3			0.1
Interest cost		21.1			21.4			0.6			0.5
Actuarial loss (gain)		(36.7	)		88.0			(0.6	)		4.8
Benefits paid		(16.6	)		(15.9	)		(0.9	)		(1.1	)
Settlements		(2.7	)		(8.7	)		—			—
End of year		480.4			515.3			14.0			14.6
Fair value of plan assets:
Beginning of year		439.9			431.4			—			—
Actual return on assets		(6.4	)		26.2			—			—
Employer contributions (2)		52.3			6.9			0.9			1.1
Benefits paid		(16.6	)		(15.9	)		(0.9	)		(1.1	)
Settlements		(2.7	)		(8.7	)		—			—
End of year		466.5			439.9			—			—
Funded status at end of year	$	(13.9	)	$	(75.4	)	$	(14.0	)	$	(14.6	)
Amounts recognized in the Consolidated Statements of Condition:
Other assets	$	26.6		$	—		$	—		$	—
Other liabilities		(40.5	)		(75.4	)		(14.0	)		(14.6	)
Funded status at end of year	$	(13.9	)	$	(75.4	)	$	(14.0	)	$	(14.6	)

(1) Represents projected benefit obligation for the Pension Plans and accumulated benefit obligation for the Other Postretirement Plan.

(2) During the quarter ended March 31, 2015, People’s United made voluntary employer contributions of $40.0 million and $10.0 million to the People’s Qualified Plan and the Chittenden Qualified Plan, respectively.

Plan assets for the People’s Qualified Plan and the Chittenden Qualified Plan (together the “Qualified Plans”) of $418.9 million and $47.6 million, respectively, as of December 31, 2015 exceeded the related projected benefit obligation ($397.0 million and $42.9 million, respectively) at that date.

Although the Supplemental Plans hold no assets, People’s United has funded a trust to provide benefit payments to the extent such benefits are not paid directly by People’s United. Trust assets of $29.2 million as of December 31, 2015 (which are included in other assets in the Consolidated Statements of Condition) were exceeded by the related projected benefit obligation ($40.5 million) at that date.

The following table summarizes the accumulated and projected benefit obligations for the Pension Plans at the respective measurement dates:

	Pension Plans
As of December 31 (in millions)	2015		2014
Accumulated benefit obligations:
Qualified Plans	$	439.9	$	474.8
Supplemental Plans		40.5		40.5
Total	$	480.4	$	515.3
Projected benefit obligations:
Qualified Plans	$	439.9	$	474.8
Supplemental Plans		40.5		40.5
Total	$	480.4	$	515.3

Components of net periodic benefit (income) expense and other amounts recognized in other comprehensive loss are as follows:

	Pension Plans									Other Postretirement Plan
Years ended December 31 (in millions)	2015			2014			2013			2015			2014			2013
Net periodic benefit (income) expense:
Service cost	$	—		$	—		$	—		$	0.3		$	0.1		$	0.2
Interest cost		21.1			21.4			19.8			0.6			0.5			0.5
Expected return on plan assets		(34.4	)		(32.0	)		(30.2	)		—			—			—
Recognized net actuarial loss		7.7			5.1			7.3			0.3			—			—
Recognized prior service credit		(0.8	)		(0.8	)		(0.8	)		(0.2	)		(0.2	)		(0.2	)
Settlements (1)		1.2			3.3			1.5			—			—			—
Net periodic benefit (income) expense		(5.2	)		(3.0	)		(2.4	)		1.0			0.4			0.5
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Net actuarial (gain) loss		(4.7	)		85.3			(99.5	)		(0.9	)		4.8			(1.3	)
Prior service credit		0.8			0.8			0.9			0.2			0.2			0.2
Total pre-tax changes recognized in other comprehensive loss		(3.9	)		86.1			(98.6	)		(0.7	)		5.0			(1.1	)
Total recognized in net periodic benefit (income) expense and other comprehensive loss	$	(9.2	)	$	83.1		$	(101.0	)	$	0.3		$	5.4		$	(0.6	)

(1) Settlement charges are a result of lump-sum benefit payments in excess of the sum of a plan’s annual interest and service costs. When an employer settles the full amount of its obligation for vested benefits with respect to some of a plan’s participants, the employer is required to recognize in income a pro-rata portion of the aggregate gain or loss recorded in AOCL.

The pre-tax amounts in AOCL that have not been recognized as components of net periodic benefit (income) expense are as follows:

	Pension Plans						Other Postretirement Plan
As of December 31 (in millions)	2015			2014			2015		2014
Net actuarial loss	$	219.3		$	224.0		$	4.2	$	5.1
Prior service credit		(2.0	)		(2.8	)		—		(0.2	)
Total pre-tax amounts included in AOCL	$	217.3		$	221.2		$	4.2	$	4.9

The Company uses a corridor approach in the valuation of its Qualified Plans, which results in the deferral of actuarial gains and losses resulting from differences between actual results and actuarial assumptions. Amortization of actuarial gains and losses occurs when the accumulated unrecognized gain or loss balance, as of the beginning of the year, exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets. The excess unrecognized gain or loss balance is amortized over the average remaining life expectancy of plan participants for the People’s Qualified Plan (approximately 29 years) and over the average working lifetime of active participants for the Chittenden Qualified Plan (approximately 8 years), both as of December 31, 2015.

In 2016, approximately $6.1 million in net actuarial losses and $0.8 million in prior service credit are expected to be recognized as components of net periodic benefit (income) expense for the Pension Plans and approximately $0.2 million in net actuarial losses is expected to be recognized as a component of net periodic benefit (income) expense for the Other Postretirement Plan.

The following assumptions were used in determining the benefit obligations and net periodic benefit (income) expense as of and for the periods indicated:

	Qualified Plans									Other Postretirement Plan
	2015			2014			2013			2015			2014			2013
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate:
People’s Qualified Plan		4.64	%		4.20	%		5.10	%		4.60	%		4.20	%		5.10	%
Chittenden Qualified Plan		4.45			4.00			4.90			n/a			n/a			n/a
Rate of compensation increase		n/a			n/a			n/a			n/a			n/a			n/a
Weighted-average assumptions used to determine net periodic benefit (income) expense for the years ended December 31:
Discount rate:
People’s Qualified Plan		4.20	%		5.10	%		4.25	%		4.20	%		5.10	%		4.25	%
Chittenden Qualified Plan		4.00			4.90			4.00			n/a			n/a			n/a
Expected return on plan assets		7.50			8.00			8.00			n/a			n/a			n/a
Rate of compensation increase		n/a			n/a			n/a			n/a			n/a			n/a
Assumed health care cost trend rates at December 31: (1)
Health care cost trend rate assumed for next year		n/a			n/a			n/a			6.80	%		7.05	%		7.25	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		n/a			n/a			n/a			4.50			4.50			4.50
Year that the rate reaches the ultimate trend rate		n/a			n/a			n/a			2027			2027			2027

n/a – not applicable

(1) Changes in the net periodic benefit (income) expense and the related benefit obligation arising as a result of a one-percentage-point increase or decrease in this assumed trend rate would not be significant.

The discount rates used to determine the benefit obligation of the Supplemental Plans at December 31, 2015 ranged from 3.95% to 4.60% while the discount rate used to determine net periodic benefit (income) expense for 2015 was 4.20%.

In developing an expected long-term rate of return on asset assumption for the Qualified Plans for purposes of determining 2015 net periodic benefit income, People’s United considered the historical returns and the future expectations for returns within each asset class, as well as the target asset allocation of the pension portfolio. This resulted in an expected long-term rate of return assumption of 7.50%, which was intended to reflect expected asset returns over the life of the related pension benefits expected to be paid. The discount rates reflect the then current rates available on long-term high-quality fixed-income debt instruments, and are reset annually on the measurement date. To determine the discount rates, People’s United reviews, along with its independent actuary, spot interest rate yield curves based upon yields from a broad population of high-quality bonds adjusted to match the timing and amounts of expected benefit payments.

In 2016, $12.8 million in net periodic benefit income is expected to be recognized related to the Qualified Plans. This amount was determined using the following assumptions: (i) an expected long-term rate of return of 7.25%; (ii) discount rates of 4.03% and 3.70% (based on the full yield curve approach discussed below) for the People’s Qualified Plan and the Chittenden Qualified Plan, respectively; and (iii) updated mortality tables issued by the Society of Actuaries in October 2015. The mortality rate is a key assumption used in valuing retirement benefit obligations as it reflects the probability of future benefit payments that are contingent upon the longevity of plan participants and their beneficiaries. Adoption of updated mortality tables resulted in a decrease in the related benefit obligation of $7.7 million for the Qualified Plans.

Beginning in 2016, People’s United will change the method used to estimate the interest cost component of net periodic benefit income for the Pension Plans and the Other Postretirement Plan. Instead of using spot interest rate yield curves as discussed above, People’s United has elected to use a full yield curve approach to estimate this component of benefit income by applying the specific spot rates along the yield curve, used in the determination of the benefit obligations, to the relevant projected cash flows. This change is expected to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of interest cost. This change will not affect the measurement of People’s United’s total benefit obligations as the change in interest cost is completely offset by the actuarial gain or loss recognized. People’s United considers this a change in accounting estimate and, accordingly, will account for it prospectively in 2016.

The expected impact in 2016 of the change in accounting estimate for the Qualified Plans is as follows:

(dollars in millions)	People’s Qualified Plan			Chittenden Qualified Plan
Discount rates used to measure net periodic benefit income in 2016:
Interest cost		4.03	%		3.70	%
Discount rates that would have been used to measure net periodic benefit income under prior actuarial methodology:
Interest cost		4.64			4.45
Increase in expected net periodic benefit income in 2016 using specific spot rates:
Interest cost	$	2.5		$	0.3

The expected impact in 2016 of the change in accounting estimate for the Supplemental Plans and the Other Postretirement Plan is $0.3 million.

People’s United’s funding policy is to contribute the amounts required by applicable regulations, although additional amounts may be contributed from time to time. In 2016, no employer contributions are expected to be made for either the People’s Qualified Plan or the Chittenden Qualified Plan. Employer contributions for the Supplemental Plans and the Other Postretirement Plan in 2016 are expected to total $5.3 million, representing net benefit payments expected to be paid under these plans.

Expected future net benefit payments for the Pension Plans as of December 31, 2015 are: $22.2 million in 2016; $23.5 million in 2017; $23.6 million in 2018; $23.0 million in 2019; $23.2 million in 2020; and an aggregate of $138.2 million in 2021 through 2025. Expected future net benefit payments for the Other Postretirement Plan as of December 31, 2015 are: $0.9 million in each of the years 2016 through 2020; and an aggregate of $3.8 million in 2021 through 2025.

The investment strategy of the Qualified Plans is to develop a diversified portfolio, representing a variety of asset classes of varying duration, in order to effectively fund expected near-term and long-term benefit payments. All investment decisions are governed by an established policy that contains the following asset allocation guidelines:

	Asset Class
	Policy Target %		Policy Range %
Cash equivalents		5		0-20
Equity securities		65		50-75
Fixed income securities		30		20-50

Equity securities are required to be diversified among industries and economic sectors and may include convertible securities. Limitations have been established on the overall allocation to any individual security representing more than 3% of the market value of total plan assets. A limit of 50% of equity holdings may be invested in international equities. Short sales, margin purchases and similar speculative transactions are prohibited.

Fixed income securities are oriented toward risk-averse, investment-grade securities rated “A” or higher. A limit of up to 30% of the fixed income holdings may be purchased and held indirectly in issues rated below “Baa” by Moody’s or “BBB” by Standard & Poor’s, if the higher investment risk is compensated for by the prospect of a positive incremental investment return. With the exception of U.S. government securities, in which the Qualified Plans may invest the entire fixed income allocation, fixed income securities require diversification among individual securities and sectors. Limitations have been established on the overall investment in securities of a single issuer to no more than 2.5% of the market value of total plan assets. There is no limit on the maximum maturity of securities held. Short sales, margin purchases and similar speculative transactions are prohibited.

The following table summarizes the percentages of fair value for the major categories of assets in the Qualified Plans as of the respective measurement dates:

	Plan Assets
	2015						2014
As of December 31	People’s Qualified Plan			Chittenden Qualified Plan			People’s Qualified Plan			Chittenden Qualified Plan
Equity securities		69	%		69	%		72	%		72	%
Cash and fixed income securities		31			31			28			28
Total		100	%		100	%		100	%		100	%

The following tables present the Qualified Plans’ assets measured at fair value:

	Fair Value Measurements Using
As of December 31, 2015 (in millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	26.3	$	—	$	—	$	26.3
Equity securities:
Corporate		215.3		—		—		215.3
Mutual funds		—		105.8		—		105.8
Fixed income securities:
Corporate		—		81.6		—		81.6
Mutual funds		—		21.8		—		21.8
Municipals		—		10.5		—		10.5
Other		—		5.2		—		5.2
Total	$	241.6	$	224.9	$	—	$	466.5

	Fair Value Measurements Using
As of December 31, 2014 (in millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	8.9	$	—	$	—	$	8.9
Equity securities:
Corporate		244.4		—		—		244.4
Mutual funds		—		71.0		—		71.0
Fixed income securities:
Corporate		—		73.8		—		73.8
Mutual funds		—		25.8		—		25.8
Municipals		—		11.6		—		11.6
Other		—		4.4		—		4.4
Total	$	253.3	$	186.6	$	—	$	439.9

Employee Stock Ownership Plan

In April 2007, People’s United established an ESOP. At that time, People’s United loaned the ESOP $216.8 million to purchase 10,453,575 shares of People’s United common stock in the open market. In order for the ESOP to repay the loan, People’s United expects to make annual cash contributions of approximately $18.8 million until 2036. Such cash contributions may be reduced by the cash dividends paid on unallocated ESOP shares, which totaled $5.1 million in 2015, $5.3 million in 2014 and $5.4 million in 2013. At December 31, 2015, the loan balance totaled $188.6 million.

Employee participation in this plan is restricted to those employees who (i) are at least 18 years of age and (ii) worked at least 1,000 hours within 12 months of their hire date or any plan year (January 1 to December 31) after their date of hire. Employees meeting the aforementioned eligibility criteria during the plan year must continue to be employed as of the last day of the plan year in order to receive an allocation of shares for that plan year.

Shares of People’s United common stock are held by the ESOP and allocated to eligible participants annually based upon a percentage of each participant’s eligible compensation. Since the ESOP was established, a total of 3,136,076 shares of People’s United common stock have been allocated or committed to be released to participants’ accounts. At December 31, 2015, 7,317,499 shares of People’s United common stock, with a fair value of $118.2 million at that date, have not been allocated or committed to be released.

Compensation expense related to the ESOP is recognized at an amount equal to the number of common shares committed to be released by the ESOP for allocation to participants’ accounts multiplied by the average fair value of People’s United’s common stock during the reporting period. The difference between the fair value of the shares of People’s United’s common stock committed to be released and the cost of those common shares is recorded as a credit to additional paid-in capital (if fair value exceeds cost) or, to the extent that no such credits remain in additional paid-in capital, as a charge to retained earnings (if fair value is less than cost). Expense recognized for the ESOP totaled $5.4 million, $5.1 million and $4.9 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Employee Savings Plans

People’s United sponsors an employee savings plan that qualifies as a 401(k) plan under the Internal Revenue Code. Employees may contribute up to 50% of their pre-tax compensation up to certain limits, and People’s United makes a matching contribution equal to 100% of a participant’s contributions up to 4% of pre-tax compensation. Participants vest immediately in their own contributions and after one year in People’s United’s contributions. A supplemental savings plan has also been established for certain senior officers and the Company has funded a trust to provide benefit payments to the extent such benefits are not paid directly by People’s United. Trust assets of $7.3 million as of December 31, 2015 (which are included in other assets in the Consolidated Statements of Condition) were exceeded by the related benefit obligation of $23.4 million at that date. Expense recognized for these employee savings plans totaled $22.1 million, $20.1 million and $20.0 million for the years ended December 31, 2015, 2014 and 2013, respectively.

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Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Plans

NOTE 17 – Stock-Based Compensation Plans

Long-Term Incentive Plan

People’s United’s 2014 Plan and the predecessor 2008 Long-Term Incentive Plan and the 1998 Long-Term Incentive Plan (together the “Incentive Plans”) provide for awards to officers and employees in the form of: (i) incentive stock options that may afford tax benefits to recipients; (ii) non-statutory stock options that do not afford tax benefits to recipients but may provide tax benefits to People’s United; and (iii) stock appreciation rights, restricted stock and performance units. A total of 34,000,000 shares of People’s United common stock are reserved for issuance under the 2014 Plan. The number of shares of common stock reserved under the 2014 Plan is depleted by one share for each option or stock appreciation right and by 5.32 shares for every share that is subject to an award other than an option or stock appreciation right. At December 31, 2015, a total of 24,875,317 reserved shares remain available for future awards.

Non-statutory stock options have been granted under the Incentive Plans at exercise prices equal to the fair value of People’s United common stock at the grant dates. Option expiration dates are fixed at the grant date, with a maximum term of ten years. Prior to 2013, options granted under the Incentive Plans generally vested 50% after two years, 75% after three years and 100% after four years. Beginning in 2013, options granted under the Incentive Plans vest 33% after one year, 66% after two years and 100% after three years. All options become fully exercisable in the event of a change of control, as defined in the Incentive Plans.

People’s United has also granted restricted stock awards under the Incentive Plans. Employees become fully vested in these shares generally after a three- or four-year period, with requisite service conditions and no performance-based conditions to such vesting. Unvested restricted stock awards become fully vested in the event of a change in control, as defined in the Incentive Plans. During the vesting period, dividends are paid on the restricted stock and the recipients are entitled to vote these restricted shares. The fair value of all restricted stock awards is measured at the grant date based on quoted market prices.

Following shareholder approval of the 2014 Plan in the second quarter of 2014, no new awards may be granted under the 2008 Long-Term Incentive Plan, the 2007 Stock Option Plan (the “SOP”) or the RRP (together the “Prior Plans”). All awards granted under the Prior Plans and the 1998 Long-Term Incentive Plan that were unvested (in the case of stock options and restricted stock awards) or unexercised (in the case of stock options) as of the date of shareholder approval of the 2014 Plan continue to be governed by the terms of the plan under which such awards were granted and the applicable grant agreements.

Recognition and Retention Plan and Stock Option Plan

The RRP and SOP (together the “2007 Plans”) provided for awards to directors, officers and employees in the form of: (i) incentive stock options that may afford tax benefits to recipients; (ii) non-statutory stock options that do not afford tax benefits to recipients but may provide tax benefits to People’s United; and (iii) restricted stock. Shares of People’s United common stock were purchased in the open market in October 2007 by a trustee with funds provided by People’s United for the maximum number of shares available to be awarded in the form of restricted stock.

Non-statutory stock options were granted under the SOP at exercise prices equal to the fair value of People’s United’s common stock at the grant date based on quoted market prices. The fair value of all restricted stock awarded under the RRP was measured at the grant date based on quoted market prices. Prior to 2014, most restricted stock awards and stock options granted under the 2007 Plans were scheduled to vest in 20% annual increments over a five-year period with requisite service conditions and no performance-based conditions to such vesting. Awards made under the 2007 Plans in 2014 are scheduled to vest in one-third annual increments over a three-year period with requisite service conditions and no performance-based conditions to such vesting. All restricted stock awards and stock options become fully vested and exercisable, respectively, in the event of a change of control, as defined in the 2007 Plans. During the vesting period, dividends are paid on the restricted stock and the recipients are entitled to vote these restricted shares.

Stock Options Granted

People’s United granted a total of 5,221,992 stock options in 2015, 562,355 stock options in 2014 and 3,164,607 stock options in 2013 under the Incentive Plans and 4,391,269 stock options under the SOP in 2014. The estimated weighted-average grant-date fair value of all stock options granted in 2015, 2014 and 2013 was $1.46 per option, $1.51 per option and $2.23 per option, respectively, using the Black-Scholes option-pricing model with assumptions as follows: dividend yield of 4.4% in 2015, 4.7% in 2014 and 5.0% in 2013; expected volatility rate of 20% in 2015, 22% in 2014 and 33% in 2013; risk-free interest rate of 1.6% in both 2015 and 2014 and 0.9% in 2013; and expected option life of approximately 5 years in 2015, 2014 and 2013. No stock options were granted under the SOP in 2013.

In arriving at the grant date fair value of stock options using the Black-Scholes option-pricing model, expected volatilities were based on the historical volatilities of People’s United traded common stock. The expected term of stock options represents the period of time that options granted are expected to be outstanding. People’s United used historical data to estimate voluntary suboptimal (early) exercises by continuing employees, and estimates of post-vest option exercise or forfeiture by terminated employees. Suboptimal exercise data and employee termination estimates are incorporated into Monte Carlo simulations of People’s United common stock prices to calculate the expected term. The risk-free interest rate approximated the U.S. Treasury rate curve matched to the expected option term at the time of the grant.

Expense relating to stock options granted is recognized on a straight-line basis, generally over the applicable service period, and totaled $6.8 million, $5.4 million and $4.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Unamortized cost for unvested stock options, which reflects an estimated forfeiture rate of 5.0% per year over the vesting period, totaled $7.4 million at December 31, 2015, and is expected to be recognized over the remaining weighted-average vesting period of 1.6 years. The total intrinsic value of stock options exercised was $5.1 million, $1.1 million and $1.3 million in the years ended December 31, 2015, 2014 and 2013, respectively.

The following is a summary of stock option activity under the Incentive Plans and the SOP:

	Shares Subject To Option			Weighted Average Exercise Price		Weighted-Average Remaining Contractual  Term (in years)		Aggregate Intrinsic Value (1) (in millions)
Options outstanding at December 31, 2012		12,156,806		$	15.95
Granted		3,164,607			13.01
Forfeited		(840,292	)		15.54
Exercised		(264,047	)		9.73
Options outstanding at December 31, 2013		14,217,074			15.43
Granted		4,953,624			13.94
Forfeited		(896,003	)		15.13
Exercised		(476,290	)		12.48
Options outstanding at December 31, 2014		17,798,405			15.11
Granted		5,221,992			14.85
Forfeited		(1,290,396	)		16.57
Exercised		(2,052,577	)		13.35
Options outstanding at December 31, 2015		19,677,424		$	15.13		6.1	$	28.6
Options exercisable at December 31, 2015		10,547,093		$	15.83		4.0	$	11.9

(1) Reflects only those stock options with intrinsic value at December 31, 2015.

Additional information concerning options outstanding and options exercisable at December 31, 2015 is summarized as follows:

	Options Outstanding						Options Exercisable
			Weighted Average
Exercise Price Range	Number		Remaining Life (in years)		Exercise Price		Number		Weighted Average Exercise Price
$11.52 - $13.05		3,036,141		6.7	$	12.84		2,010,763	$	12.83
13.42 - 15.80		11,260,621		7.9		14.50		3,155,668		14.49
16.07 - 17.76		2,251,654		2.4		16.97		2,251,654		16.97
18.10 - 21.63		3,129,008		1.8		18.29		3,129,008		18.29

Restricted Stock Awarded

The following is a summary of restricted stock award activity under the Incentive Plans and the RRP:

	Shares			Weighted-Average Grant Date Fair Value
Unvested restricted shares outstanding at December 31, 2012		1,581,421		$	13.48
Granted		617,796			13.15
Forfeited		(44,046	)		12.85
Vested		(621,956	)		14.08
Unvested restricted shares outstanding at December 31, 2013		1,533,215			13.12
Granted		660,617			14.01
Forfeited		(95,700	)		13.53
Vested		(730,600	)		13.22
Unvested restricted shares outstanding at December 31, 2014		1,367,532			13.47
Granted		568,273			14.88
Forfeited		(80,303	)		14.23
Vested		(623,185	)		13.33
Unvested restricted shares outstanding at December 31, 2015		1,232,317		$	14.14

Expense relating to unvested restricted stock awards is recognized on a straight-line basis, generally over the applicable service period, and totaled $9.4 million, $8.7 million and $8.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. Unamortized cost for unvested restricted stock awards, which reflects an estimated forfeiture rate of 5.1% per year over the vesting period, totaled $9.4 million at December 31, 2015, and is expected to be recognized over the remaining weighted-average vesting period of 1.5 years. The total fair value of restricted stock awards vested during the years ended December 31, 2015, 2014 and 2013 was $9.4 million, $10.3 million and $9.4 million, respectively.

During 2015, 2014 and 2013, employees of People’s United tendered a total of 230,459 shares, 229,635 shares and 205,943 shares of common stock, respectively, in satisfaction of their related minimum tax withholding obligations upon the vesting of restricted stock awards granted in prior periods and/or in payment of the exercise price and satisfaction of their related minimum tax withholding obligations upon the exercise of stock options granted in prior periods. There is no limit on the number of shares that may be tendered by employees of People’s United in the future for these purposes. Shares acquired in payment of the stock option exercise price or in satisfaction of minimum tax withholding obligations are not eligible for reissuance in connection with any subsequent grants made pursuant to equity compensation plans maintained by People’s United. Rather, all shares acquired in this manner are retired by People’s United, resuming the status of authorized but unissued shares of People’s United’s common stock. The total cost of shares repurchased and retired applicable to restricted stock awards during the years ended December 31, 2015, 2014 and 2013 was $3.2 million, $3.0 million and $2.2 million, respectively.

Directors’ Equity Compensation Plan

The People’s United Financial, Inc. Directors’ Equity Compensation Plan (the “Directors’ Plan”) provides for an annual award of shares of People’s United common stock with a fair value of approximately $95,000 to each non-employee director immediately following each annual meeting of shareholders. Shares of People’s United common stock issued pursuant to the Directors’ Plan are subject to a one-year vesting period, with no post-vesting transfer restrictions. A total of 1,192,500 shares of People’s United common stock are reserved for issuance under the Directors’ Plan.

In 2015, 2014 and 2013, directors were granted a total of 62,690 shares, 57,330 shares and 58,896 shares, respectively, of People’s United common stock, with grant date fair values of $15.23 per share, $14.63 per share and $12.76 per share, respectively, at those dates. Expense totaling $0.9 million, $0.8 million and $0.8 million was recognized for the years ended December 31, 2015, 2014 and 2013, respectively, for the Directors’ Plan. At December 31, 2015, a total of 251,071 shares remain available for issuance.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 18 – Fair Value Measurements

Described below are the valuation methodologies used by People’s United and the resulting fair values for those financial instruments measured at fair value on both a recurring and a non-recurring basis, as well as for those financial assets and financial liabilities not measured at fair value but for which fair value is disclosed.

Recurring Fair Value Measurements

Trading Account Securities and Securities Available For Sale

When available, People’s United uses quoted market prices for identical securities received from an independent, nationally-recognized, third-party pricing service (as discussed further below) to determine the fair value of investment securities such as U.S. Treasury and agency securities that are included in Level 1. When quoted market prices for identical securities are unavailable, People’s United uses prices provided by the independent pricing service based on recent trading activity and other observable information including, but not limited to, market interest rate curves, referenced credit spreads and estimated prepayment rates where applicable. These investments include certain U.S. and government agency debt securities, corporate and municipal debt securities, and GSE residential mortgage-backed securities and CMOs, all of which are included in Level 2.

Substantially all of the Company’s available-for-sale securities represent GSE residential mortgage-backed securities and CMOs. The fair values of these securities are based on prices obtained from the independent pricing service. The pricing service uses various techniques to determine pricing for the Company’s mortgage-backed securities, including option pricing and discounted cash flow analysis. The inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, reference data, monthly payment information and collateral performance. At both December 31, 2015 and 2014, the entire available-for-sale residential mortgage-backed securities portfolio was comprised of 10- and 15-year GSE securities. An active market exists for securities that are similar to the Company’s GSE residential mortgage-backed securities and CMOs, making observable inputs readily available.

Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year securities. As a further point of validation, the Company generates its own month-end fair value estimate for all mortgage-backed securities, agency-issued CMOs (also backed by 15-year mortgage-backed securities), and state and municipal securities. While the Company has not adjusted the prices obtained from the independent pricing service, any notable differences between those prices and the Company’s estimates are subject to further analysis. This additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for the particular security. Based on management’s review of the prices provided by the pricing service, the fair values incorporate observable market inputs used by market participants at the measurement date and, as such, are classified as Level 2 securities.

Other Assets

As discussed in Note 16, certain unfunded, nonqualified supplemental plans have been established to provide retirement benefits to certain senior officers. People’s United has funded two trusts to provide benefit payments to the extent such benefits are not paid directly by People’s United, the assets of which are included in other assets in the Consolidated Statements of Condition. When available, People’s United determines the fair value of the trust assets using quoted market prices for identical securities received from a third-party nationally recognized pricing service.

Derivatives

People’s United values its derivatives using internal models that are based on market or observable inputs including interest rate curves and forward/spot prices for selected currencies. Derivative assets and liabilities included in Level 2 represent interest rate swaps, foreign exchange contracts, risk participation agreements, forward commitments to sell residential mortgage loans and interest rate-lock commitments on residential mortgage loans.

The following tables summarize People’s United’s financial instruments that are measured at fair value on a recurring basis:

	Fair Value Measurements Using
As of December 31, 2015 (in millions)	Level 1		Level 2		Level 3		Total
Financial assets:
Trading account securities:
U.S. Treasury	$	6.7	$	—	$	—	$	6.7
Securities available for sale:
U.S. Treasury and agency		362.8		—		—		362.8
GSE residential mortgage-backed securities and CMOs		—		4,164.7		—		4,164.7
Equity securities		—		0.2		—		0.2
Other assets:
Exchange-traded funds		29.4		—		—		29.4
Fixed income securities		—		5.1		—		5.1
Mutual funds		2.0		—		—		2.0
Interest rate swaps		—		157.0		—		157.0
Foreign exchange contracts		—		0.6		—		0.6
Forward commitments to sell residential mortgage loans		—		0.6		—		0.6
Total	$	400.9	$	4,328.2	$	—	$	4,729.1
Financial liabilities:
Interest rate swaps	$	—	$	108.5	$	—	$	108.5
Foreign exchange contracts		—		0.2		—		0.2
Interest rate-lock commitments on residential mortgage loans		—		0.8		—		0.8
Total	$	—	$	109.5	$	—	$	109.5

	Fair Value Measurements Using
As of December 31, 2014 (in millions)	Level 1		Level 2		Level 3		Total
Financial assets:
Trading account securities:
U.S. Treasury	$	8.3	$	—	$	—	$	8.3
Securities available for sale:
U.S. Treasury and agency		56.8		—		—		56.8
GSE residential mortgage-backed securities and CMOs		—		3,936.7		—		3,936.7
Equity securities		—		0.2		—		0.2
Other assets:
Exchange-traded funds		30.3		—		—		30.3
Fixed income securities		—		6.0		—		6.0
Mutual funds		0.8		—		—		0.8
Interest rate swaps		—		131.1		—		131.1
Foreign exchange contracts		—		0.8		—		0.8
Forward commitments to sell residential mortgage loans		—		0.5		—		0.5
Total	$	96.2	$	4,075.3	$	—	$	4,171.5
Financial liabilities:
Interest rate swaps	$	—	$	95.8	$	—	$	95.8
Foreign exchange contracts		—		0.5		—		0.5
Interest rate-lock commitments on residential mortgage loans		—		0.7		—		0.7
Total	$	—	$	97.0	$	—	$	97.0

As of December 31, 2015 and 2014, the fair value of risk participation agreements totaled less than $0.1 million (see Note 20).

There were no transfers into or out of the Level 1 or Level 2 categories during the years ended December 31, 2015 and 2014.

Non-Recurring Fair Value Measurements

Loans Held for Sale

Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. When available, People’s United uses observable secondary market data, including pricing on recent closed market transactions for loans with similar characteristics. Accordingly, such loans are classified as Level 2 measurements. When observable data is unavailable, valuation methodologies using current market interest rate data adjusted for inherent credit risk are used, and such loans are included in Level 3.

Impaired Loans

Loan impairment is deemed to exist when full repayment of principal and interest according to the contractual terms of the loan is no longer probable. Impaired loans are reported based on one of three measures: the present value of expected future cash flows discounted at the loan’s original effective interest rate; the loan’s observable market price; or the fair value of the collateral (less estimated cost to sell) if the loan is collateral dependent. Accordingly, certain impaired loans may be subject to measurement at fair value on a non-recurring basis. People’s United has estimated the fair values of these assets using Level 3 inputs, such as discounted cash flows based on inputs that are largely unobservable and, instead, reflect management’s own estimates of the assumptions a market participant would use in pricing such loans and/or the fair value of collateral based on independent third-party appraisals for collateral-dependent loans. Such appraisals are based on the market and/or income approach to value and are subject to a discount (to reflect estimated cost to sell) that generally approximates 10%.

REO and Repossessed Assets

REO and repossessed assets are recorded at the lower of cost or fair value, less estimated selling costs, and are therefore measured at fair value on a non-recurring basis. People’s United has estimated the fair values of these assets using Level 3 inputs, such as independent third-party appraisals and price opinions. Such appraisals are based on the market and/or income approach to value and are subject to a discount (to reflect estimated cost to sell) that generally approximates 10%. Assets that are acquired through loan default are recorded as held for sale initially at the lower of the recorded investment in the loan or fair value (less estimated selling costs) upon the date of foreclosure/repossession. Subsequent to foreclosure/repossession, valuations are updated periodically and the carrying amounts of these assets may be reduced further.

The following tables summarize People’s United’s assets that are measured at fair value on a non-recurring basis:

	Fair Value Measurements Using
As of December 31, 2015 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	34.5	$	—	$	34.5
Impaired loans (2)		—		—		49.1		49.1
REO and repossessed assets (3)		—		—		22.1		22.1
Total	$	—	$	34.5	$	71.2	$	105.7
	Fair Value Measurements Using
As of December 31, 2014 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	34.2	$	—	$	34.2
Impaired loans (2)		—		—		66.5		66.5
REO and repossessed assets (3)		—		—		27.1		27.1
Total	$	—	$	34.2	$	93.6	$	127.8

(1) Consists of residential mortgage loans; no fair value adjustments were recorded for the years ended December 31, 2015 and 2014.

(2) Represents the recorded investment in originated impaired loans with a related allowance for loan losses measured in accordance with applicable accounting guidance. The total consists of $33.0 million of Commercial loans and $16.1 million of Retail loans at December 31, 2015. The provision for loan losses on impaired loans totaled $6.7 million and $10.9 million for the years ended December 31, 2015 and 2014, respectively.

(3) Represents: (i) $7.1 million of residential REO; (ii) $5.5 million of commercial REO; and (iii) $9.5 million of repossessed assets at December 31, 2015. Charge-offs to the allowance for loan losses related to loans that were transferred to REO or repossessed assets totaled $1.8 million and $1.2 million for the years ended December 31, 2015 and 2014, respectively. Write downs and net loss on sale of foreclosed/repossessed assets charged to non-interest expense totaled $2.8 million and $5.1 million for the same periods.

Financial Assets and Financial Liabilities Not Measured At Fair Value

As discussed in Note 1, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date (an “exit price” approach to fair value).

Acceptable valuation techniques (when quoted market prices are not available) that might be used to estimate the fair value of financial instruments include discounted cash flow analyses and comparison to similar instruments. Such estimates are highly subjective and require judgments regarding significant matters such as the amount and timing of future cash flows and the selection of discount rates that appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are made as of a specific point in time, they are susceptible to material near-term changes. Fair values estimated in this manner do not reflect any premium or discount that could result from the sale of a large volume of a particular financial instrument, nor do they reflect possible tax ramifications or estimated transaction costs.

The following is a description of the principal valuation methods used by People’s United for those financial instruments that are not measured at fair value either on a recurring or non-recurring basis:

Cash, Short-Term Investments and Securities Purchased Under Agreements to Resell

Cash and due from banks are classified as Level 1. Short-term investments and securities purchased under agreements to resell have fair values that approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities, and present relatively low credit risk and IRR. As such, these fair values are classified as Level 2.

Securities Held to Maturity

When available, the fair values of investment securities held to maturity are measured based on quoted market prices for identical securities in active markets and, accordingly, are classified as Level 1 assets. When quoted market prices for identical securities are not available, fair values are estimated based on quoted prices for similar assets in active markets or through the use of pricing models containing observable inputs (i.e. market interest rates, financial information and credit ratings of the issuer, etc.). These fair values are included in Level 2. In cases where there may be limited information available and/or little or no market activity for the underlying security, fair value is estimated using pricing models containing unobservable inputs and classified as Level 3.

FHLB and FRB-NY Stock

Both FHLB and FRB-NY stock are non-marketable equity securities classified as Level 2 and reported at cost, which equals par value (the amount at which shares have been redeemed in the past). No significant observable market data is available for either of these securities.

Loans

For valuation purposes, the loan portfolio is segregated into its significant categories, which are commercial real estate, commercial and industrial, equipment financing, residential mortgage, home equity and other consumer. These categories are further segregated, where appropriate, into components based on significant financial characteristics such as type of interest rate (fixed or adjustable) and payment status (performing or non-performing). Fair values are estimated for each component using a valuation method selected by management.

The fair values of performing loans were estimated by discounting the anticipated cash flows from the respective portfolios, assuming future prepayments and using market interest rates for new loans with comparable credit risk. As a result, the valuation method for performing loans, which is consistent with certain guidance provided in accounting standards, does not fully incorporate the “exit price” approach to fair value. The fair values of non-performing loans were based on recent collateral appraisals or management’s analysis of estimated cash flows discounted at rates commensurate with the credit risk involved. The estimated fair values of residential mortgage loans are classified as Level 2 as a result of the observable market inputs (i.e. market interest rates, prepayment assumptions, etc.) available for this loan type. The fair values of all other loan types are classified as Level 3 as the inputs contained within the respective discounted cash flow models are largely unobservable and, instead, reflect management’s own estimates of the assumptions a market participant would use in pricing such loans. The fair value of home equity lines of credit was based on the outstanding loan balances, and therefore does not reflect the value associated with earnings from future loans to existing customers.

Deposit Liabilities

The fair values of time deposits represent contractual cash flows discounted at current rates determined by reference to observable inputs including a LIBOR/swap curve over the remaining period to maturity. As such, these fair values are classified as Level 2. The fair values of other deposit liabilities (those with no stated maturity, such as checking and savings accounts) are equal to the carrying amounts payable on demand. Deposit fair values do not include the intangible value of core deposit relationships that comprise a significant portion of People’s United’s deposit base. Management believes that People’s United’s core deposit relationships provide a relatively stable, low-cost funding source that has a substantial intangible value separate from the deposit balances.

Borrowings and Notes and Debentures

The fair values of federal funds purchased and repurchase agreements are equal to the carrying amounts due to the short maturities (generally overnight). The fair values of FHLB advances and other borrowings represent contractual repayments discounted using interest rates currently available on borrowings with similar characteristics and remaining maturities and are classified as Level 2. The fair values of notes and debentures were based on dealer quotes and are classified as Level 2.

Lending-Related Financial Instruments

The estimated fair values of People’s United’s lending-related financial instruments approximate the respective carrying amounts. Such instruments include commitments to extend credit, unadvanced lines of credit and letters of credit, for which fair values were estimated based on an analysis of the interest rates and fees currently charged to enter into similar transactions, considering the remaining terms of the instruments and the creditworthiness of the potential borrowers.

The following tables summarize the carrying amounts, estimated fair values and placement in the fair value hierarchy of People’s United’s financial instruments that are not measured at fair value either on a recurring or non-recurring basis:

			Estimated Fair Value
	Carrying Amount		Measurements Using
As of December 31, 2015 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	334.8	$	334.8	$	—	$	—	$	334.8
Short-term investments		380.5		—		380.5		—		380.5
Securities held to maturity		1,609.6		—		1,661.0		1.5		1,662.5
FHLB and FRB stock		305.4		—		305.4		—		305.4
Total loans, net (1)		28,150.8		—		5,315.3		22,893.7		28,209.0
Financial liabilities:
Time deposits		4,818.1		—		4,836.5		—		4,836.5
Other deposits		23,599.3		—		23,599.3		—		23,599.3
FHLB advances		3,463.8		—		3,468.7		—		3,468.7
Customer repurchase agreements		469.5		—		469.5		—		469.5
Federal funds purchased		374.0		—		374.0		—		374.0
Notes and debentures		1,038.7		—		1,012.9		—		1,012.9

(1) Excludes impaired loans totaling $49.1 million measured at fair value on a non-recurring basis.

			Estimated Fair Value
	Carrying Amount		Measurements Using
As of December 31, 2014 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	345.1	$	345.1	$	—	$	—	$	345.1
Short-term investments		668.6		—		668.6		—		668.6
Securities purchased under agreements to resell		100.0		—		100.0		—		100.0
Securities held to maturity		834.3		—		880.1		1.5		881.6
FHLB stock		175.7		—		175.7		—		175.7
Total loans, net (1)		26,327.2		—		4,798.5		21,508.8		26,307.3
Financial liabilities:
Time deposits		5,230.7		—		5,262.6		—		5,262.6
Other deposits		20,907.5		—		20,907.5		—		20,907.5
FHLB advances		2,291.7		—		2,298.5		—		2,298.5
Federal funds purchased		913.0		—		913.0		—		913.0
Customer repurchase agreements		486.0		—		486.0		—		486.0
Repurchase agreements (2)		1.0		—		1.0		—		1.0
Notes and debentures		1,033.5		—		1,040.8		—		1,040.8

(1) Excludes impaired loans totaling $66.5 million measured at fair value on a non-recurring basis.

(2) Included in other borrowings in the Consolidated Statements of Condition.

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Legal Proceedings and Lease Commitments

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings and Lease Commitments

NOTE 19 – Legal Proceedings and Lease Commitments

People’s United has various outstanding commitments and contingent liabilities that are not required to be and, therefore, have not been reflected in the consolidated financial statements.

Legal Proceedings

In the normal course of business, People’s United is subject to various legal proceedings. Management has discussed with legal counsel the nature of these legal proceedings and, based on the advice of counsel and the information currently available, believes that the eventual outcome of these legal proceedings will not have a material adverse effect on its financial condition, results of operations or liquidity.

Lease Commitments

At December 31, 2015, People’s United was obligated under various noncancelable operating leases for office space, which expire on various dates through 2054. Certain leases contain renewal options and provide for increased rentals based principally on the consumer price index and fair market rental value provisions. Future minimum rental commitments under operating leases in excess of one year at December 31, 2015 were: $56.5 million in 2016; $55.2 million in 2017; $50.2 million in 2018; $46.5 million in 2019; $42.8 million in 2020; and an aggregate of $140.0 million in 2021 through 2054. Rent expense under operating leases included in occupancy and equipment in the Consolidated Statements of Income totaled $58.9 million, $59.1 million and $58.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.

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Financial Instruments

12 Months Ended

Dec. 31, 2015

Investments, All Other Investments [Abstract]

Financial Instruments

NOTE 20 – Financial Instruments

In the normal course of business, People’s United is a party to both on-balance-sheet and off-balance-sheet financial instruments involving, to varying degrees, elements of credit risk and IRR in addition to the amounts recognized in the Consolidated Statements of Condition. The contractual amounts of off-balance-sheet instruments reflect the extent of People’s United’s involvement in particular classes of financial instruments.

A summary of the contractual or notional amounts of People’s United’s lending-related and derivative financial instruments follows:

As of December 31 (in millions)	2015		2014
Lending-Related Financial Instruments: (1)
Loan origination commitments and unadvanced lines of credit:
Commercial	$	3,578.0	$	3,337.2
Consumer		2,558.4		2,455.9
Commercial real estate		831.0		880.1
Residential mortgage		93.3		111.8
Letters of credit:
Stand-by		121.5		148.3
Commercial		3.4		3.2
Derivative Financial Instruments: (2)
Interest rate swaps:
For market risk management		500.0		500.0
For commercial customers:
Customer		4,644.8		3,380.2
Institutional counterparties		4,644.8		3,380.2
Risk participation agreements		244.4		150.1
Foreign exchange contracts		56.7		49.6
Forward commitments to sell residential mortgage loans		44.7		35.3
Interest rate-lock commitments on residential mortgage loans		65.4		57.5

(1) The contractual amounts of these financial instruments represent People’s United’s maximum potential exposure to credit loss, assuming (i) the instruments are fully funded at a later date; (ii) the borrower does not meet contractual repayment obligations; and (iii) any collateral or other security proves to be worthless.

(2) The contractual or notional amounts of these financial instruments are substantially greater than People’s United’s maximum potential exposure to credit loss.

Lending-Related Financial Instruments

The contractual amounts of People’s United’s lending-related financial instruments do not necessarily represent future cash requirements since certain of these instruments may expire without being funded and others may not be fully drawn upon. These instruments are subject to People’s United’s credit approval process, including an evaluation of the customer’s creditworthiness and related collateral requirements. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee by the customer. The geographic distribution of People’s United’s lending-related financial instruments is similar to the distribution of its loan portfolio, as described in Note 4.

People’s United issues both stand-by and commercial letters of credit. Stand-by letters of credit are conditional commitments issued by People’s United to guarantee the performance of a customer to a third party. The letter of credit is generally extended for an average term of one year and is secured in a manner similar to existing extensions of credit. For each letter of credit issued, if the customer fails to perform under the terms of the agreement, People’s United would have to fulfill the terms of the letter of credit. The credit risk involved in issuing stand-by letters of credit is essentially the same as that involved in extending loan facilities to customers.

A commercial letter of credit is normally a short-term instrument issued by a financial institution on behalf of its customer. The letter of credit authorizes a beneficiary to draw drafts on the financial institution or one of its correspondent banks, provided the terms and conditions of the letter of credit have been met. In issuing a commercial letter of credit, the financial institution has substituted its credit standing for that of its customer. After drafts are paid by the financial institution, the customer is charged or an obligation is created under an existing reimbursement agreement. An advance under a reimbursement agreement is recorded as a loan by the financial institution and is subject to terms and conditions similar to other commercial obligations.

The fair value of People’s United’s obligations relating to its unfunded loan commitments and letters of credit included in other liabilities in the Consolidated Statements of Condition was $2.5 million at both December 31, 2015 and 2014.

Derivative Financial Instruments and Hedging Activities

People’s United uses derivative financial instruments as components of its market risk management (principally to manage IRR). Certain other derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes.

By using derivatives, People’s United is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s counterparty credit risk is equal to the amount reported as a derivative asset in the Consolidated Statements of Condition. In accordance with the Company’s balance sheet offsetting policy (see Note 1), amounts reported as derivative assets represent derivative contracts in a gain position, without consideration for derivative contracts in a loss position with the same counterparty (to the extent subject to master netting arrangements) and posted collateral. People’s United seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, execution of master netting arrangements and obtaining collateral, where appropriate. Counterparties to People’s United’s derivatives include major financial institutions and exchanges that undergo comprehensive and periodic internal credit analysis as well as maintain investment grade credit ratings from the major credit rating agencies. As such, management believes the risk of incurring credit losses on derivative contracts with those counterparties is remote and losses, if any, would be immaterial.

Certain of People’s United’s derivative contracts contain provisions establishing collateral requirements (subject to minimum collateral posting thresholds) based on the Company’s external credit rating. If the Company’s senior unsecured debt rating were to fall below the level generally recognized as investment grade, the counterparties to such derivative contracts could require additional collateral on those derivative transactions in a net liability position (after considering the effect of master netting arrangements and posted collateral). The aggregate fair value of derivative instruments with such credit-related contingent features that were in a net liability position at December 31, 2015 was $8.8 million, for which People’s United had posted collateral of $8.3 million in the normal course of business. If the Company’s senior unsecured debt rating had fallen below investment grade as of that date, $0.5 million in additional collateral would have been required.

The following sections further discuss each class of derivative financial instrument used by People’s United, including management’s principal objectives and risk management strategies.

Interest Rate Swaps

People’s United may, from time to time, enter into interest rate swaps that are used to manage IRR associated with certain interest-earning assets and interest-bearing liabilities.

People’s United has entered into a pay fixed/receive floating interest rate swap to hedge the LIBOR-based floating rate payments on the Company’s $125 million subordinated notes (such payments began in February 2012). These notes had a fixed interest rate of 5.80% until February 2012, at which time the interest rate converted to the three-month LIBOR plus 68.5 basis points. People’s United has agreed with the swap counterparty to exchange, at specified intervals, the difference between fixed-rate (1.99%) and floating-rate interest amounts calculated based on a notional amount of $125 million. The floating-rate interest amounts received under the swap are calculated using the same floating-rate paid on these notes. The swap effectively converts the variable-rate subordinated notes to a fixed-rate liability and consequently reduces People’s United’s exposure to increases in interest rates. This swap is accounted for as a cash flow hedge.

The Bank has entered into a pay floating/receive fixed interest rate swap to hedge the change in fair value of the Bank’s $400 million subordinated notes (see Note 10) due to changes in interest rates. The Bank has agreed with the swap counterparty to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated based on a notional amount of $375 million. The fixed-rate interest payments received on the swap will essentially offset the fixed-rate interest payments made on these notes, notwithstanding the notional difference between these notes and the swap. The floating-rate interest amounts paid under the swap are calculated based on three-month LIBOR plus 126.5 basis points. The swap effectively converts the fixed-rate subordinated notes to a floating-rate liability. This swap is accounted for as a fair value hedge.

Customer Derivatives

People’s United enters into interest rate swaps with certain of its commercial customers. In order to minimize its risk, these customer derivatives (pay floating/receive fixed swaps) have been offset with essentially matching interest rate swaps with People’s United’s institutional counterparties (pay fixed/receive floating swaps). Hedge accounting has not been applied for these derivatives. Accordingly, changes in the fair value of all such interest rate swaps are recognized in current earnings.

Risk Participation Agreements

People’s United enters into risk participation agreements under which it may either assume or sell credit risk associated with a borrower’s performance under certain interest rate derivative contracts. In those instances in which People’s United has assumed credit risk, it is not a party to the derivative contract and has entered into the risk participation agreement because it is also a party to the related loan agreement with the borrower. In those instances in which People’s United has sold credit risk, it is a party to the derivative contract and has entered into the risk participation agreement because it sold a portion of the related loan. People’s United manages its credit risk under risk participation agreements by monitoring the creditworthiness of the borrower, based on its normal credit review process. The notional amounts of the risk participation agreements reflect People’s United’s pro-rata share of the derivative contracts, consistent with its share of the related loans.

Foreign Exchange Contracts

Foreign exchange contracts are commitments to buy or sell foreign currency on a future date at a contractual price. People’s United uses these instruments on a limited basis to (i) eliminate its exposure to fluctuations in currency exchange rates on certain of its commercial loans that are denominated in foreign currencies and (ii) provide foreign exchange contracts on behalf of commercial customers within credit exposure limits. Gains and losses on foreign exchange contracts substantially offset the translation gains and losses on the related loans.

Interest Rate Locks

In connection with its planned issuance of senior notes in the fourth quarter of 2012, People’s United entered into U.S. Treasury forward interest rate locks (“T-Locks”) to hedge the risk that the 10-year U.S. Treasury yield component of the underlying coupon of the fixed rate senior notes would rise prior to establishing the fixed interest rate on the senior notes. Upon pricing the senior notes, the T-Locks were terminated and the unrealized gain of $0.9 million was included (on a net-of-tax basis) as a component of AOCL. The gain is being recognized as a reduction of interest expense over the ten-year period during which the hedged item ($500 million senior note issuance) affects earnings. The portion of the unrecognized gain at December 31, 2015 that is expected to be recognized over the next 12 months totals approximately $0.1 million.

Forward Commitments to Sell Residential Mortgage Loans and Related Interest Rate-Lock Commitments

People’s United enters into forward commitments to sell adjustable-rate and fixed-rate residential mortgage loans (all to be sold servicing released) in order to reduce the market risk associated with originating loans for sale in the secondary market. In order to fulfill a forward commitment, People’s United delivers originated loans at prices or yields specified by the contract. The risks associated with such contracts arise from the possible inability of counterparties to meet the contract terms or People’s United’s inability to originate the necessary loans. Gains and losses realized on the forward contracts are reported in the Consolidated Statements of Income as a component of the net gains on sales of residential mortgage loans. In the normal course of business, People’s United will commit to an interest rate on a mortgage loan application at the time of application, or anytime thereafter. The risks associated with these interest rate-lock commitments arise if market interest rates change prior to the closing of these loans. Both forward sales commitments and interest rate-lock commitments made to borrowers on held-for-sale loans are accounted for as derivatives, with changes in fair value recognized in current earnings.

The table below provides a summary of the notional amounts and fair values (presented on a gross basis) of derivatives outstanding:

						Fair Values (1)
	Type of Hedge	Notional Amounts				Assets				Liabilities
As of December 31 (in millions)		2015		2014		2015		2014		2015		2014
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	4,644.8	$	3,380.2	$	130.9	$	104.2	$	2.6	$	8.3
Institutional counterparties	N/A		4,644.8		3,380.2		7.2		11.8		105.3		86.5
Risk participation agreements (2)	N/A		244.4		150.1		—		—		—		—
Foreign exchange contracts	N/A		56.7		49.6		0.6		0.8		0.2		0.5
Forward commitments to sell residential mortgage loans	N/A		44.7		35.3		0.6		0.5		—		—
Interest rate-lock commitments on residential mortgage loans	N/A		65.4		57.5		—		—		0.8		0.7
Total							139.3		117.3		108.9		96.0
Derivatives Designated as Hedging Instruments:
Interest rate swaps:
Subordinated notes	Cash flow		125.0		125.0		—		—		0.6		1.0
Subordinated notes	Fair value		375.0		375.0		18.9		15.1		—		—
Total							18.9		15.1		0.6		1.0
Total fair value of derivatives						$	158.2	$	132.4	$	109.5	$	97.0

(1) Assets are recorded in other assets and liabilities are recorded in other liabilities.

(2) Fair value totaled less than $0.1 million at both dates.

The following table summarizes the impact of People’s United’s derivatives on pre-tax income and AOCL:

		Amount of Pre-Tax Gain (Loss)									Amount of Pre-Tax Gain (Loss)
	Type of Hedge	Recognized in Earnings (1)									Recognized in AOCL
Years ended December 31 (in millions)		2015			2014			2013			2015			2014			2013
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	104.8		$	165.4		$	(54.2	)	$	—		$	—		$	—
Institutional counterparties	N/A		(90.3	)		(156.9	)		64.7			—			—			—
Foreign exchange contracts	N/A		0.2			0.4			0.1			—			—			—
Risk participation agreements	N/A		(0.2	)		0.1			0.2			—			—			—
Forward commitments to sell residential mortgage loans	N/A		0.1			0.4			(2.9	)		—			—			—
Interest rate-lock commitments on residential mortgage loans	N/A		(0.1	)		(0.5	)		3.5			—			—			—
Total			14.5			8.9			11.4			—			—			—
Derivatives Designated as Hedging Instruments:
Interest rate swaps	Cash flow		(1.3	)		(1.4	)		(1.3	)		(1.1	)		(0.9	)		0.7
Interest rate locks	Cash flow		0.1			0.1			0.1			—			—			—
Interest rate swaps	Fair value		9.3			5.2			—			—			—			—
Total			8.1			3.9			(1.2	)		(1.1	)		(0.9	)		0.7
Total		$	22.6		$	12.8		$	10.2		$	(1.1	)	$	(0.9	)	$	0.7

(1) Amounts recognized in earnings are recorded in interest income, interest expense or other non-interest income for derivatives designated as hedging instruments and in other non-interest income for derivatives not designated as hedging instruments.

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Balance Sheet Offsetting

12 Months Ended

Dec. 31, 2015

Text Block [Abstract]

Balance Sheet Offsetting

NOTE 21 – Balance Sheet Offsetting

The following tables provide a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition. The collateral amounts in these tables are limited to the outstanding balances of the related asset or liability (after netting is applied) and, therefore, instances of overcollateralization are not presented. The net amounts of the derivative assets and liabilities can be reconciled to the fair value of the Company’s derivative financial instruments in Note 20. The Company’s derivative contracts with commercial customers and customer repurchase agreements are not subject to master netting arrangements and, therefore, have been excluded from the tables below.

	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset
As of December 31, 2015 (in millions)							Financial Instruments			Collateral			Net Amount
Financial assets:
Interest rate swaps:
Counterparty A	$	0.6	$	—	$	0.6	$	(0.6	)	$	—		$	—
Counterparty B		0.7		—		0.7		(0.7	)		—			—
Counterparty C		0.6		—		0.6		(0.6	)		—			—
Counterparty D		0.7		—		0.7		(0.7	)		—			—
Counterparty E		22.6		—		22.6		(22.6	)		—			—
Other counterparties		0.8		—		0.8		(0.7	)		—			0.1
Foreign exchange contracts		0.6		—		0.6		—			—			0.6
Total	$	26.6	$	—	$	26.6	$	(25.9	)	$	—		$	0.7
Financial liabilities:
Interest rate swaps:
Counterparty A	$	8.4	$	—	$	8.4	$	(0.6	)	$	(7.8	)	$	—
Counterparty B		10.4		—		10.4		(0.7	)		(9.7	)		—
Counterparty C		5.1		—		5.1		(0.6	)		(4.5	)		—
Counterparty D		8.9		—		8.9		(0.7	)		(7.3	)		0.9
Counterparty E		69.5		—		69.5		(22.6	)		(46.9	)		—
Other counterparties		3.6		—		3.6		(0.7	)		(2.9	)		—
Foreign exchange contracts		0.2		—		0.2		—			—			0.2
Total	$	106.1	$	—	$	106.1	$	(25.9	)	$	(79.1	)	$	1.1

	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset
As of December 31, 2014 (in millions)							Financial Instruments			Collateral			Net Amount
Financial assets:
Interest rate swaps:
Counterparty A	$	2.7	$	—	$	2.7	$	(2.7	)	$	—		$	—
Counterparty B		1.5		—		1.5		(1.5	)		—			—
Counterparty C		2.5		—		2.5		(2.5	)		—			—
Counterparty D		3.2		—		3.2		(0.4	)		(2.8	)		—
Counterparty E		15.7		—		15.7		(15.7	)		—			—
Other counterparties		1.3		—		1.3		(1.3	)		—			—
Securities purchased under agreements to resell		100.0		—		100.0		—			(100.0	)		—
Foreign exchange contracts		0.8		—		0.8		—			—			0.8
Total	$	127.7	$	—	$	127.7	$	(24.1	)	$	(102.8	)	$	0.8
Financial liabilities:
Interest rate swaps:
Counterparty A	$	11.8	$	—	$	11.8	$	(2.7	)	$	(9.1	)	$	—
Counterparty B		11.8		—		11.8		(1.5	)		(10.3	)		—
Counterparty C		4.5		—		4.5		(2.5	)		(1.9	)		0.1
Counterparty D		0.4		—		0.4		(0.4	)		—			—
Counterparty E		47.8		—		47.8		(15.7	)		(32.1	)		—
Other counterparties		11.2		—		11.2		(1.3	)		(8.9	)		1.0
Repurchase agreements (1)		1.0		—		1.0		—			(1.0	)		—
Foreign exchange contracts		0.5		—		0.5		—			—			0.5
Total	$	89.0	$	—	$	89.0	$	(24.1	)	$	(63.3	)	$	1.6

(1) Included in other borrowings in the Consolidated Statements of Condition.

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Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

NOTE 22 – Segment Information

Public companies are required to report (i) certain financial and descriptive information about “reportable operating segments,” as defined, and (ii) certain enterprise-wide financial information about products and services, geographic areas and major customers. Operating segment information is reported using a “management approach” that is based on the way management organizes the segments for purposes of making operating decisions and assessing performance.

People’s United’s operations are divided into three primary operating segments that represent its core businesses: Commercial Banking; Retail Banking; and Wealth Management. In addition, the Treasury area manages People’s United’s securities portfolio, short-term investments, brokered deposits, wholesale borrowings and the funding center.

The Company’s operating segments have been aggregated into two reportable segments: Commercial Banking and Retail Banking. These reportable segments have been identified and organized based on the nature of the underlying products and services applicable to each segment, the type of customers to whom those products and services are offered and the distribution channel through which those products and services are made available. With respect to Wealth Management, this presentation results in the allocation of the Company’s insurance business and certain trust activities to the Commercial Banking segment, and the allocation of the Company’s brokerage business and certain other trust activities to the Retail Banking segment.

Commercial Banking consists principally of commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. This segment also includes the equipment financing operations of PCLC and PUEFC, as well as cash management, correspondent banking and municipal banking. In addition, Commercial Banking consists of institutional trust services, corporate trust, insurance services provided through PUIA and private banking.

Retail Banking includes, as its principal business lines, consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. In addition, Retail Banking consists of brokerage, financial advisory services, investment management services and life insurance provided by PSI and non-institutional trust services.

People’s United’s segment disclosure is based on an internal profitability reporting system, which generates information by operating segment based on a series of management estimates and allocations regarding funds transfer pricing (“FTP”), the provision for loan losses, non-interest expense and income taxes. These estimates and allocations, some of which are subjective in nature, are subject to periodic review and refinement. Any changes in estimates and allocations that may affect the reported results of any segment will not affect the consolidated financial position or results of operations of People’s United as a whole. Certain reclassifications have been made to prior period segment results to conform to the current period presentation.

FTP, which is used in the calculation of each operating segment’s net interest income, measures the value of funds used in and provided by an operating segment. The difference between the interest income on earning assets and the interest expense on funding liabilities, and the corresponding FTP charge for interest income or credit for interest expense, results in net spread income. For fixed-term assets and liabilities, the FTP rate is assigned at the time the asset or liability is originated by reference to the Company’s FTP yield curve, which is updated daily. For non-maturity-term assets and liabilities, the FTP rate is determined based upon the underlying characteristics, or behavior, of each particular product and results in the use of a historical rolling average FTP rate determined over a period that is most representative of the average life of the particular asset or liability. While the Company’s FTP methodology serves to remove IRR from the operating segments and better facilitate pricing decisions, thereby allowing management to more effectively assess the longer-term profitability of an operating segment, it may, in sustained periods of low and/or high interest rates, result in a measure of operating segment net interest income that is not reflective of current interest rates.

During the quarter ended March 31, 2015, the Company modified its FTP methodology relating to certain deposit products that resulted in a reduction in the funding credit recognized within net interest income for Commercial Banking and Retail Banking, with the offset reflected in Treasury. Prior period segment results have not been adjusted and continue to reflect the previous FTP methodology.

A five-year rolling average net charge-off rate is used as the basis for the provision for loan losses for the respective operating segment in order to present a level of portfolio credit cost that is representative of the Company’s historical experience, without presenting the potential volatility from year-to-year changes in credit conditions. While this method of allocation allows management to more effectively assess the longer-term profitability of a segment, it may result in a measure of segment provision for loan losses that does not reflect actual incurred losses for the periods presented.

People’s United allocates a majority of non-interest expenses to each operating segment using a full-absorption costing process (i.e. all expenses are fully-allocated to the segments). Direct and indirect costs are analyzed and pooled by process and assigned to the appropriate operating segment and corporate overhead costs are allocated to the operating segments. During the quarter ended March 31, 2015, the Company modified its cost allocation methodology with respect to the allocation of branch costs associated with servicing certain customers, which resulted in an increase in non-interest expense for Commercial Banking and Wealth Management, with the offset reflected in Retail Banking. Prior period segment results have not been adjusted and continue to reflect the previous cost allocation methodology. Income tax expense is allocated to each operating segment using a constant rate, based on an estimate of the consolidated effective income tax rate for the year. Average total assets and average total liabilities are presented for each reportable segment due to management’s reliance, in part, on such average balances for purposes of assessing segment performance. Average total assets of each reportable segment include allocated goodwill and intangible assets, both of which are reviewed for impairment at least annually.

The “Other” category includes the residual financial impact from the allocation of revenues and expenses (including the provision for loan losses) and certain revenues and expenses not attributable to a particular segment; assets and liabilities not attributable to a particular segment; reversal of the FTE adjustment since net interest income for each segment is presented on an FTE basis; and the FTP impact from excess capital. The “Other” category also includes certain non-recurring items, such as: gain on sale of business, net of expenses, totaling $9.2 million and $20.6 million for the years ended December 31, 2015 and 2014, respectively (included in total non-interest income); and one-time charges totaling $12.9 million, $9.5 million and $12.7 million for the years ended December 31, 2015, 2014 and 2013, respectively (included in total non-interest expense).

The following tables provide selected financial information for People’s United’s reportable segments:

Year ended December 31, 2015 (in millions)	Commercial Banking		Retail Banking			Total Reportable Segments		Treasury			Other			Total Consolidated
Net interest income (loss)	$	551.6	$	344.6		$	896.2	$	64.4		$	(28.5	)	$	932.1
Provision for loan losses		47.7		15.2			62.9		—			(29.5	)		33.4
Total non-interest income		162.0		169.7			331.7		11.1			9.6			352.4
Total non-interest expense		313.2		520.2			833.4		6.9			20.3			860.6
Income (loss) before income tax expense (benefit)		352.7		(21.1	)		331.6		68.6			(9.7	)		390.5
Income tax expense (benefit)		117.9		(7.0	)		110.9		22.9			(3.4	)		130.4
Net income (loss)	$	234.8	$	(14.1	)	$	220.7	$	45.7		$	(6.3	)	$	260.1
Average total assets	$	21,465.7	$	8,478.1		$	29,943.8	$	6,405.5		$	544.7		$	36,894.0
Average total liabilities		5,483.2		19,235.8			24,719.0		7,194.4			283.3			32,196.7
Year ended December 31, 2014 (in millions)	Commercial Banking		Retail Banking			Total Reportable Segments		Treasury			Other			Total Consolidated
Net interest income (loss)	$	516.0	$	408.0		$	924.0	$	10.7		$	(22.8	)	$	911.9
Provision for loan losses		47.6		16.8			64.4		—			(23.8	)		40.6
Total non-interest income		141.4		167.4			308.8		12.4			29.6			350.8
Total non-interest expense		275.7		528.0			803.7		6.2			31.6			841.5
Income (loss) before income tax expense (benefit)		334.1		30.6			364.7		16.9			(1.0	)		380.6
Income tax expense (benefit)		113.1		10.3			123.4		5.8			(0.3	)		128.9
Net income (loss)	$	221.0	$	20.3		$	241.3	$	11.1		$	(0.7	)	$	251.7
Average total assets	$	19,338.5	$	8,514.8		$	27,853.3	$	5,266.7		$	632.8		$	33,752.8
Average total liabilities		4,275.1		19,109.2			23,384.3		5,423.0			320.1			29,127.4
Year ended December 31, 2013 (in millions)	Commercial Banking		Retail Banking			Total Reportable Segments		Treasury			Other			Total Consolidated
Net interest income (loss)	$	487.7	$	456.3		$	944.0	$	(46.6	)	$	(8.8	)	$	888.6
Provision for loan losses		47.3		15.0			62.3		—			(18.6	)		43.7
Total non-interest income		143.3		180.9			324.2		7.2			10.3			341.7
Total non-interest expense		247.4		551.2			798.6		(1.4	)		41.8			839.0
Income (loss) before income tax expense (benefit)		336.3		71.0			407.3		(38.0	)		(21.7	)		347.6
Income tax expense (benefit)		111.4		23.6			135.0		(12.6	)		(7.2	)		115.2
Net income (loss)	$	224.9	$	47.4		$	272.3	$	(25.4	)	$	(14.5	)	$	232.4
Average total assets	$	16,979.5	$	8,373.4		$	25,352.9	$	5,021.1		$	634.9		$	31,008.9
Average total liabilities		3,459.7		19,064.4			22,524.1		3,352.3			377.7			26,254.1

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Parent Company Financial Information

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Parent Company Financial Information

NOTE 23 – Parent Company Financial Information

Condensed financial information of People’s United (parent company only) is presented below:

CONDENSED STATEMENTS OF CONDITION

As of December 31 (in millions)	2015		2014
Assets:
Cash at bank subsidiary	$	170.2	$	3.1
Short-term investments		—		1.2
Total cash and cash equivalents		170.2		4.3
Securities available for sale, at fair value		201.4		0.2
Advances to bank subsidiary		100.0		410.0
Investments in subsidiaries:
Bank subsidiary		4,649.2		4,618.3
Non-bank subsidiary		0.8		0.4
Goodwill		197.1		197.1
Other assets		39.3		34.2
Total assets	$	5,358.0	$	5,264.5
Liabilities and Stockholders’ Equity:
Notes and debentures	$	622.5	$	621.1
Other liabilities		3.9		10.3
Stockholders’ equity		4,731.6		4,633.1
Total liabilities and stockholders’ equity	$	5,358.0	$	5,264.5

CONDENSED STATEMENTS OF INCOME

Years ended December 31 (in millions)	2015			2014			2013
Revenues:
Interest income:
Advances to bank subsidiary	$	4.4		$	4.4		$	4.1
Securities		1.1			0.4			0.3
Total interest income		5.5			4.8			4.4
Dividend from bank subsidiary		245.0			244.0			232.0
Security gain		—			2.3			—
Other non-interest income		4.2			1.2			2.0
Total revenues		254.7			252.3			238.4
Expenses:
Interest on notes and debentures		22.5			22.4			23.0
Non-interest expense		2.8			6.1			6.8
Total expenses		25.3			28.5			29.8
Income before income tax benefit and subsidiaries undistributed income		229.4			223.8			208.6
Income tax benefit		(5.5	)		(6.6	)		(7.4	)
Income before subsidiaries undistributed income		234.9			230.4			216.0
Subsidiaries undistributed income		25.2			21.3			16.4
Net income	$	260.1		$	251.7		$	232.4

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

Years ended December 31 (in millions)	2015			2014			2013
Net income	$	260.1		$	251.7		$	232.4
Other comprehensive loss, net of tax:
Net unrealized losses on securities available for sale		(0.4	)		—			(0.2	)
Net unrealized gains on derivatives accounted for as cash flow hedges		0.2			0.2			1.2
Other comprehensive loss of bank subsidiary		(8.8	)		(13.3	)		(59.2	)
Total other comprehensive loss, net of tax		(9.0	)		(13.1	)		(58.2	)
Total comprehensive income	$	251.1		$	238.6		$	174.2

CONDENSED STATEMENTS OF CASH FLOWS

Years ended December 31 (in millions)	2015			2014			2013
Cash Flows from Operating Activities:
Net income	$	260.1		$	251.7		$	232.4
Adjustments to reconcile net income to net cash provided by operating activities:
Subsidiaries undistributed income		(25.2	)		(21.3	)		(16.4	)
Security gain		—			(2.3	)		—
Net change in other assets and other liabilities		(0.4	)		0.2			(2.4	)
Net cash provided by operating activities		234.5			228.3			213.6
Cash Flows from Investing Activities:
Proceeds from principal repayments and maturities of securities available for sale		1.2			—			—
Proceeds from sale of security available for sale		—			5.0			—
Purchases of securities available for sale		(202.9	)		—			—
Decrease (increase) in advances to bank subsidiary		310.0			(57.0	)		485.0
Net cash provided by (used in) investing activities		108.3			(52.0	)		485.0
Cash Flows from Financing Activities:
Repayment of notes and debentures		—			—			(20.6	)
Cash dividends paid on common stock		(201.2	)		(196.9	)		(204.8	)
Common stock repurchases		(3.2	)		(3.0	)		(461.1	)
Proceeds from stock options exercised, including excess income tax benefits		27.5			6.0			2.4
Net cash used in financing activities		(176.9	)		(193.9	)		(684.1	)
Net increase (decrease) in cash and cash equivalents		165.9			(17.6	)		14.5
Cash and cash equivalents at beginning of year		4.3			21.9			7.4
Cash and cash equivalents at end of year	$	170.2		$	4.3		$	21.9

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Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

NOTE 24 – Selected Quarterly Financial Data (Unaudited)

The following table presents People’s United’s quarterly financial data for 2015 and 2014:

	2015												2014
(in millions, except per share data)	First			Second			Third			Fourth			First			Second			Third			Fourth
Interest and dividend income	$	260.3		$	264.5		$	269.9		$	274.2		$	255.4		$	256.7		$	258.9		$	259.6
Interest expense		32.2			34.1			35.1			35.4			28.3			28.5			30.4			31.5
Net interest income		228.1			230.4			234.8			238.8			227.1			228.2			228.5			228.1
Provision for loan losses		9.8			7.7			6.2			9.7			9.5			8.8			12.4			9.9
Net interest income after provision for loan losses		218.3			222.7			228.6			229.1			217.6			219.4			216.1			218.2
Non-interest income		89.0			83.0			87.1			93.3			79.9			100.1			84.0			86.8
Non-interest expense		217.6			211.8			214.2			217.0			216.7			208.3			208.8			207.7
Income before income tax expense		89.7			93.9			101.5			105.4			80.8			111.2			91.3			97.3
Income tax expense		30.5			32.2			33.1			34.6			27.7			38.9			29.7			32.6
Net income	$	59.2		$	61.7		$	68.4		$	70.8		$	53.1		$	72.3		$	61.6		$	64.7
Basic EPS (1)	$	0.20		$	0.20		$	0.23		$	0.23		$	0.18		$	0.24		$	0.21		$	0.22
Diluted EPS (1)		0.20			0.20			0.23			0.23			0.18			0.24			0.21			0.22
Average common shares outstanding:
Basic		299.15			300.09			301.00			301.38			297.69			298.22			298.42			298.63
Diluted		299.15			300.09			301.00			301.38			297.72			298.24			298.44			298.65
Common stock price:
High	$	15.45		$	16.64		$	16.95		$	16.93		$	15.70		$	15.23		$	15.32		$	15.50
Low		13.97			14.92			14.69			15.00			13.73			14.00			14.24			13.61
Dividends paid		49.5			50.5			50.6			50.6			48.6			49.4			49.4			49.5
Dividends per share		0.165			0.1675			0.1675			0.1675			0.1625			0.165			0.165			0.165
Dividend payout ratio		83.7	%		81.8	%		73.9	%		71.5	%		91.5	%		68.4	%		80.2	%		76.5	%

(1) The sum of the quarterly earnings per share amounts for 2014 does not equal the full-year amount due to rounding and/or changes in average share count for the respective periods.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Basis of Financial Statement Presentation

Basis of Financial Statement Presentation

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of People’s United and its subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. Certain reclassifications have been made to prior year amounts to conform to the current year presentation.

In preparing the consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from management’s current estimates, as a result of changing conditions and future events.

Several accounting estimates are particularly critical and are susceptible to significant near-term change, including the allowance for loan losses and asset impairment judgments, such as the recoverability of goodwill and other intangible assets. These accounting estimates, which are included in the discussion below, are reviewed with the Audit Committee of the Board of Directors.

The judgments used by management in applying critical accounting policies may be affected by economic conditions, which may result in changes to future financial results. For example, subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan losses in future periods, and the inability to collect outstanding principal may result in increased loan losses.

For purposes of the Consolidated Statements of Cash Flows, cash equivalents include highly liquid instruments, such as: (i) interest-bearing deposits at the Federal Reserve Bank of New York (“FRB-NY”); (ii) government-sponsored enterprise (“GSE”) debt securities with an original maturity of three months or less (determined as of the date of purchase); (iii) federal funds sold; (iv) commercial paper; and (v) money market mutual funds. These instruments are reported as short-term investments in the Consolidated Statements of Condition at cost or amortized cost, which approximates fair value. GSE debt securities classified as cash equivalents are held to maturity and carry the implicit backing of the U.S. government, but are not direct obligations of the U.S. government.

Securities

Securities

Marketable equity and debt securities (other than those reported as short-term investments) are classified as either trading account securities, held to maturity securities (applicable only to debt securities) or available for sale securities. Management determines the classification of a security at the time of its purchase and reevaluates such classification at each balance sheet date.

Securities purchased for sale in the near term as well as those securities held by PSI (in accordance with the requirements for a broker-dealer) are classified as trading account securities and reported at fair value with unrealized gains and losses reported in non-interest income.

Debt securities for which People’s United has the positive intent and ability to hold to maturity are classified as held to maturity securities and reported at amortized cost. All other securities are classified as available for sale and reported at fair value with unrealized gains and losses reported on an after-tax basis in stockholders’ equity as accumulated other comprehensive income (loss). Premiums are amortized and discounts are accreted to interest income for debt securities, using the interest method over the remaining period to contractual maturity, adjusted for the effect of actual prepayments in the case of mortgage-backed securities and collateralized mortgage obligations (“CMOs”).

Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification method and reported in non-interest income.

Securities transferred from available for sale to held to maturity are recorded at fair value at the date of transfer. The unrealized pre-tax gain or loss resulting from the difference between fair value and amortized cost at the transfer date becomes part of the new amortized cost basis of the securities and remains in accumulated other comprehensive loss (“AOCL”). Such unrealized gains or losses are amortized to interest income as an adjustment to yield over the remaining life of the securities, offset by the amortization of the premium or discount resulting from the transfer at fair value, with no effect to net income.

Management conducts a periodic review and evaluation of the securities portfolio to determine if the decline in fair value of any security is deemed to be other-than-temporary. Other-than-temporary impairment losses are recognized on debt securities when: (i) People’s United has an intention to sell the security; (ii) it is more likely than not that People’s United will be required to sell the security prior to recovery; or (iii) People’s United does not expect to recover the entire amortized cost basis of the security. Other-than-temporary impairment losses on debt securities are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. Management has the ability and intent to hold the securities classified as held to maturity until they mature, at which time People’s United expects to receive full value for the securities.

Both FRB-NY stock and Federal Home Loan Bank (“FHLB”) stock are non-marketable equity securities and are, therefore, reported at their respective costs, which equals par value (the amount at which shares have been redeemed in the past). These investments are periodically evaluated for impairment based on, among other things, the capital adequacy of the FRB-NY or applicable FHLB and their overall financial condition.

Securities Resale and Securities Repurchase Agreements

Securities Resale and Securities Repurchase Agreements

In securities resale agreements, a counterparty transfers securities to People’s United (as transferee) and People’s United agrees to resell the same securities to the counterparty at a fixed price in the future. In securities repurchase agreements, which include both retail arrangements with customers and wholesale arrangements with other counterparties, People’s United (as transferor) transfers securities to a counterparty and agrees to repurchase the same securities from the counterparty at a fixed price in the future.

People’s United accounts for securities resale agreements as secured lending transactions and securities repurchase agreements as secured borrowings since the transferor maintains effective control over the transferred securities and the transfer meets the other criteria for such accounting. The securities are pledged by the transferor as collateral and the transferee has the right by contract to repledge that collateral provided the same collateral is returned to the transferor upon maturity of the underlying agreement. The fair value of the pledged collateral approximates the recorded amount of the secured loan or borrowing. Decreases in the fair value of the transferred securities below an established threshold require the transferor to provide additional collateral.

Loans Held for Sale

Loans Held for Sale

Loans held for sale are reported at the lower of cost or fair value in the aggregate with any adjustment for net unrealized losses reported in non-interest income. Management identifies and designates as loans held for sale certain newly-originated adjustable-rate and fixed-rate residential mortgage loans that meet secondary market requirements, as these loans are originated with the intent to sell. From time to time, management identifies and designates residential mortgage loans held in the loan portfolio for sale. Such loans are transferred to loans held for sale and adjusted to the lower of cost or fair value with the resulting unrealized loss, if any, reported in non-interest income.

Loans

Loans

Loans acquired in connection with business combinations are referred to as ‘acquired’ loans as a result of the manner in which they are accounted for (see further discussion under ‘Acquired Loans’ below). All other loans are referred to as ‘originated’ loans.

Basis of Accounting

Originated loans are reported at amortized cost less the allowance for loan losses. Interest on loans is accrued to income monthly based on outstanding principal balances. Loan origination fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized in interest income as an adjustment of yield. Depending on the loan portfolio, amounts are amortized or accreted using the level yield method over either the actual life or the estimated average life of the loan.

Non-accrual Loans

A loan is generally considered “non-performing” when it is placed on non-accrual status. A loan is generally placed on non-accrual status when it becomes 90 days past due as to interest or principal payments. Past due status is based on the contractual payment terms of the loan. A loan may be placed on non-accrual status before it reaches 90 days past due if such loan has been identified as presenting uncertainty with respect to the collectability of interest and principal. A loan past due 90 days or more may remain on accruing status if such loan is both well secured and in the process of collection. There were no loans past due 90 days or more and still accruing interest at December 31, 2015, 2014 or 2013.

All previously accrued but unpaid interest on non-accrual loans is reversed from interest income in the period in which the accrual of interest is discontinued. Interest payments received on non-accrual loans (including impaired loans) are generally applied as a reduction of principal if future collections are doubtful, although such interest payments may be recognized as income. A loan remains on non-accrual status until the factors that indicated doubtful collectability no longer exist or until a loan is determined to be uncollectible and is charged off against the allowance for loan losses.

Impaired Loans

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impaired loans also include certain originated loans whose terms have been modified in such a way that they are considered troubled debt restructurings (“TDRs”). Originated loans are considered TDRs if the borrower is experiencing financial difficulty and is afforded a concession by People’s United, such as, but not limited to: (i) payment deferral; (ii) a reduction of the stated interest rate for the remaining contractual life of the loan; and (iii) an extension of the loan’s original contractual term at a stated previously accrued principal or interest.

TDRs may either be accruing or placed on non-accrual status (and reported as non-performing loans) depending upon the loan’s specific circumstances, including the nature and extent of the related modifications. TDRs on non-accrual status remain classified as such until the loan qualifies for return to accrual status. Loans qualify for return to accrual status once they have demonstrated performance with the restructured terms of the loan agreement for a minimum of six months in the case of a commercial loan or, in the case of a retail loan, when the loan is less than 90 days past due. Loans may continue to be reported as TDRs after they are returned to accrual status. In accordance with regulatory guidance, residential mortgage and home equity loans restructured in connection with the borrower’s bankruptcy and meeting certain criteria are also required to be classified as TDRs, included in non-performing loans and written down to the estimated collateral value, regardless of delinquency status. Acquired loans that are modified are not considered for TDR classification provided they are evaluated for impairment on a pool basis.

Impairment is evaluated on a collective basis for smaller-balance loans with similar credit risk and on an individual loan basis for other loans. If a loan is deemed to be impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported (net of the allowance) at the present value of expected future cash flows discounted at the loan’s original effective interest rate or at the fair value of the collateral less cost to sell if repayment is expected solely from the collateral. Interest payments on impaired non-accrual loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Acquired Loans

Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected are initially recorded at fair value without recording an allowance for loan losses. Fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a

market-based discount rate to those cash flows. Acquired loans are generally accounted for on a pool basis, with pools formed based on the loans’ common risk characteristics, such as loan collateral type and accrual status. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows.

Under the accounting model for acquired loans, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield”, is accreted into interest income over the life of the loans in each pool using the effective yield method. Accordingly, acquired loans are not subject to classification as non-accrual in the same manner as originated loans. Rather, acquired loans are considered to be accruing loans because their interest income relates to the accretable yield recognized at the pool level and not to contractual interest payments at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “nonaccretable difference”, includes estimates of both the impact of prepayments and future credit losses expected to be incurred over the life of the loans in each pool. As such, charge-offs on acquired loans are first applied to the nonaccretable difference and then to any allowance for loan losses recognized subsequent to acquisition.

Subsequent to acquisition, actual cash collections are monitored relative to management’s expectations and revised cash flow forecasts are prepared, as warranted. These revised forecasts involve updates, as necessary, of the key assumptions and estimates used in the initial estimate of fair value. Generally speaking, expected cash flows are affected by:

• Changes in the expected principal and interest payments over the estimated life – Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows resulting from loan modifications are included in the assessment of expected cash flows;

• Changes in prepayment assumptions – Prepayments affect the estimated life of the loans which may change the amount of interest income, and possibly principal, expected to be collected; and

• Changes in interest rate indices for variable rate loans – Expected future cash flows are based, as applicable, on the variable rates in effect at the time of the assessment of expected cash flows.

A decrease in expected cash flows in subsequent periods may indicate that the loan pool is impaired, which would require the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods serves, first, to reduce any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan pool. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans in the pool.

An acquired loan may be resolved either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party or foreclosure of the collateral. In the event of a sale of the loan, a gain or loss on sale is recognized and reported within non-interest income based on the difference between the sales proceeds and the carrying amount of the loan. In other cases, individual loans are removed from the pool based on comparing the amount received from its resolution (fair value of the underlying collateral less costs to sell in the case of a foreclosure) with its outstanding balance. Any difference between these amounts is absorbed by the nonaccretable difference established for the entire pool. For loans resolved by payment in full, there is no adjustment of the nonaccretable difference since there is no difference between the amount received at resolution and the outstanding balance of the loan. In these cases, the remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by the removal of the loan from the pool is addressed in connection with the subsequent cash flow re-assessment for the pool. Acquired loans subject to modification are not removed from the pool even if those loans would otherwise be deemed TDRs as the pool, and not the individual loan, represents the unit of account.

Allowance and Provision for Loan Losses

The allowance for loan losses is established through provisions for loan losses charged to income. Losses on loans, including impaired loans, are charged to the allowance for loan losses when all or a portion of a loan is deemed to be uncollectible. Recoveries of loans previously charged off are credited to the allowance for loan losses when realized.

People’s United maintains the allowance for loan losses at a level that is deemed to be appropriate to absorb probable losses inherent in the respective loan portfolios, based on a quarterly evaluation of a variety of factors. These factors include, but are not limited to: (i) People’s United’s historical loan loss experience and recent trends in that experience; (ii) risk ratings assigned by lending personnel to commercial real estate loans, commercial and industrial loans, and equipment financing loans, and the results of ongoing reviews of those ratings by People’s United’s independent loan review function; (iii) an evaluation of delinquent and non-performing loans and related collateral values; (iv) the probability of loss in view of geographic and industry concentrations and other portfolio risk characteristics; (v) the present financial condition of borrowers; and (vi) current economic conditions.

The Company’s allowance for loan losses consists of three elements: (i) an allowance for larger-balance, non-homogeneous loans that are evaluated on an individual (loan-by-loan) basis; (ii) an allowance for smaller-balance, homogeneous loans that are evaluated on a collective basis; and (iii) a specific allowance for loans deemed to be impaired, including originated loans classified as TDRs.

Larger-balance, Non-homogeneous Loans. The Company establishes a loan loss allowance for its larger-balance, non-homogeneous loans using a methodology that incorporates (i) the probability of default for a given loan risk rating and (ii) historical default data over a multi-year period. In accordance with the Company’s loan risk rating system, each loan, with the exception of those included in large groups of smaller-balance homogeneous loans, is assigned a risk rating (using a nine-grade scale) by the originating loan officer, credit management, internal loan review or loan committee. Loans rated “One” represent those loans least likely to default while loans rated “Nine” represent a loss. The probability of loans defaulting for each risk rating, referred to as default factors, are estimated based on the historical pattern of loans migrating from one risk rating to another and to default status over time as well as the length of time that it takes losses to emerge. Estimated loan default factors, which are updated annually (or more frequently, if necessary), are multiplied by loan balances within each risk-rating category and again multiplied by a historical loss-given-default estimate for each loan type to determine an appropriate level of allowance by loan type. The historical loss-given-default estimates are also updated annually (or more frequently, if necessary) based on actual charge-off experience. This approach is applied to the commercial, commercial real estate and equipment financing components of the loan portfolio.

In developing the allowance for loan losses for larger-balance, non-homogeneous loans, the Company also gives consideration to certain qualitative factors, including the macroeconomic environment and any potential imprecision inherent in its loan loss model that may result from having limited historical loan loss data which, in turn, may result in inaccurate probability of default and loss-given-default estimates. In consideration of these factors, the Company may adjust the allowance for loan losses upward or downward based on current economic conditions and portfolio trends. In determining the extent of any such adjustment, the Company considers both economic and portfolio-specific data that correlates with loan losses. The Company evaluates the qualitative factors on a quarterly basis in order to conclude that they continue to be appropriate. There were no significant changes in the amount of the qualitative component of the related allowance for loan losses during 2015.

Smaller-balance, Homogeneous Loans. Pools of smaller-balance, homogeneous loans with similar risk and loss characteristics are also assessed for probable losses. These loan pools include residential mortgage, home equity and other consumer loans that are not assigned individual loan risk ratings. Rather, the assessment of these portfolios, and the establishment of the related allowance for loan losses, is based upon a consideration of (i) recent historical loss experience and (ii) certain qualitative factors.

In establishing the allowance for loan losses for residential mortgage loans, the Company principally considers historical portfolio loss experience of the most recent 1- and 3-year periods, as management believes this provides a reasonable basis for estimating the inherent probable losses within the residential mortgage portfolio. In establishing the allowance for loan losses for home equity loans, the Company principally considers historical portfolio loss experience of the most recent 12-month period.

The qualitative component of the allowance for loan losses for smaller-balance, homogenous loans is intended to incorporate risks inherent in the portfolio, economic uncertainties, regulatory requirements and other subjective factors such as changes in underwriting standards. Accordingly, consideration is given to: (i) present and forecasted economic conditions, including unemployment rates; (ii) changes in industry trends, including the impact of new regulations, (iii) trends in property values; (iv) broader portfolio indicators, including delinquencies, non-performing loans, portfolio concentrations, and trends in the volume and terms of loans; and (v) portfolio-specific risk characteristics.

The portfolio-specific risk characteristics considered include: (i) collateral values/loan-to-value (“LTV”) ratios (above and below 70%); (ii) borrower credit scores under the FICO scoring system (above and below a score of 680); and (iii) other relevant portfolio risk elements such as income verification at the time of underwriting (stated income vs. non-stated income) and the property’s intended use (owner-occupied, non-owner occupied, second home, etc.), the combination of which results in a loan being classified as either “High”, “Moderate” or “Low” risk. These risk classifications are reviewed quarterly to ensure that changes within the portfolio, as well as economic indicators and industry developments, have been appropriately considered in establishing the related allowance for loan losses.

In establishing the allowance for loan losses for smaller-balance, homogeneous loans, the amount reflecting the Company’s consideration of qualitative factors is added to the amount attributable to historical portfolio loss experience. In this manner, historical charge-off data (whether periods or amounts) is not adjusted and the allowance for loan losses always includes a component attributable to qualitative factors, the degree of which may change from period to period as such qualitative factors indicate improving or worsening trends. There were no significant changes in the amount of the qualitative component of the related allowance for loan losses during 2015.

Individually Impaired Loans. The allowance for loan losses also includes specific allowances for individually impaired loans. Generally, the Company’s impaired loans consist of (i) classified commercial loans in excess of $750,000 that have been placed on non-accrual status and (ii) originated loans classified as TDRs. Individually impaired loans are measured based upon observable market prices; the present value of expected future cash flows discounted at the loan’s original effective interest rate; or, in the case of collateral dependent loans, fair value of the collateral (based on appraisals and other market information) less cost to sell. If the recorded investment in a loan exceeds the amount measured as described in the preceding sentence, a specific allowance for loan losses would be established as a component of the overall allowance for loan losses or, in the case of a collateral dependent loan, a charge-off would be recorded for the difference between the loan’s recorded investment and management’s estimate of the fair value of the collateral (less cost to sell). It would be rare for the Company to identify a loan that meets the criteria stated above and requires a specific allowance or a charge-off and not deem it impaired solely as a result of the existence of a guarantee.

People’s United performs an analysis of its impaired loans, including collateral dependent impaired loans, on a quarterly basis. Individually impaired collateral dependent loans are measured based upon the appraised value of the underlying collateral and other market information. Generally, the Company’s policy is to obtain updated appraisals for commercial collateral dependent loans when the loan is downgraded to a risk rating of “substandard” or “doubtful”, and the most recent appraisal is more than 12 months old or a determination has been made that the property has experienced a significant decline in value. Appraisals are prepared by independent, licensed third-party appraisers and are subject to review by the Company’s internal commercial appraisal department or external appraisers contracted by the commercial appraisal department. The conclusions of the external appraisal review are reviewed by the Company’s Chief Commercial Appraiser prior to acceptance. The Company’s policy with respect to impaired loans secured by residential real estate is to receive updated estimates of property values upon the loan being classified as non-performing (typically upon becoming 90 days past due).

In determining the allowance for loan losses, People’s United gives appropriate consideration to the age of appraisals through its regular evaluation of other relevant qualitative and quantitative information. Specifically, between scheduled appraisals, property values are monitored within the commercial portfolio by reference to current originations of collateral dependent loans and the related appraisals obtained during underwriting as well as by reference to recent trends in commercial property sales as published by leading industry sources. Property values are monitored within the residential mortgage and home equity portfolios by reference to available market indicators, including real estate price indices within the Company’s primary lending areas.

In most situations where a guarantee exists, the guarantee arrangement is not a specific factor in the assessment of the related allowance for loan losses. However, the assessment of a guarantor’s credit strength is reflected in the Company’s internal loan risk ratings which, in turn, are an important factor in its allowance for loan loss methodology for loans within the commercial and commercial real estate portfolios.

People’s United did not change its methodologies with respect to determining the allowance for loan losses during 2015. As part of its ongoing assessment of the allowance for loan losses, People’s United regularly makes refinements to certain underlying assumptions used in its methodologies. However, such refinements did not have a material impact on the allowance for loan losses or the provision for loan losses as of or for the year ended December 31, 2015.

While People’s United seeks to use the best available information to make these determinations, future adjustments to the allowance for loan losses may be necessary based on changes in economic conditions, results of regulatory examinations, further information obtained regarding known problem loans, the identification of additional problem loans and other factors.

Loan Charge-Offs

The Company’s charge-off policies, which comply with standards established by banking regulators, are consistently applied from period to period. Charge-offs are recorded on a monthly basis. Partially charged-off loans continue to be evaluated on a monthly basis and additional charge-offs or loan loss provisions may be recorded on the remaining loan balance based on the same criteria.

For unsecured consumer loans, charge-offs are generally recorded when the loan is deemed to be uncollectible or 120 days past due, whichever occurs first. For consumer loans secured by real estate, including residential mortgage loans, charge-offs are generally recorded when the loan is deemed to be uncollectible or 180 days past due, whichever occurs first, unless it can be clearly demonstrated that repayment will occur regardless of the delinquency status. Factors that demonstrate an ability to repay may include: (i) a loan that is secured by adequate collateral and is in the process of collection; (ii) a loan supported by a valid guarantee or insurance; or (iii) a loan supported by a valid claim against a solvent estate.

For commercial loans, a charge-off is recorded when the Company determines that it will not collect all amounts contractually due based on the fair value of the collateral less cost to sell, or the present value of expected future cash flows.

The decision whether to charge-off all or a portion of a loan rather than to record a specific or general loss allowance is based on an assessment of all available information that aids in determining the loan’s net realizable value. Typically this involves consideration of both (i) the fair value of any collateral securing the loan, including whether the estimate of fair value has been derived from an appraisal or other market information and (ii) other factors affecting the likelihood of repayment, including the existence of guarantees and insurance. If the amount by which the Company’s recorded investment in the loan exceeds its net realizable value is deemed to be a confirmed loss, a charge-off is recorded. Otherwise, a specific or general reserve is established, as applicable.

Wealth Management and Other Fee-Based Revenues

Wealth Management and Other Fee-Based Revenues

Investment management fees are accrued when earned based on total assets managed and administered, which are not reported as assets of People’s United. Insurance revenue represents commissions earned solely from performing broker- and agency-related services. Insurance commission revenues related to agency-billed policies are recognized at the later of the policy billing date or the policy effective date. Insurance commission revenues on premiums directly billed by insurance carriers are generally recognized as revenue during the period commissions are paid by the insurance carrier. Brokerage commissions are recognized on a trade-date basis. Bank service charges are recorded when earned.

Bank-Owned Life Insurance

Bank-Owned Life Insurance

Bank-owned life insurance (“BOLI”) represents the cash surrender value of life insurance policies purchased on the lives of certain key executives and former key executives. BOLI funds are generally invested in separate accounts and are supported by a stable wrap agreement to fully insulate the underlying investments against changes in fair value. Increases in the cash surrender value of these policies and death benefits in excess of the related invested premiums are included in non-interest income in the Consolidated Statements of Income. The Company’s BOLI policies have been underwritten by highly-rated third party insurance carriers and the investments underlying these policies are deemed to be of low-to-moderate market risk.

Premises and Equipment

Premises and Equipment

Premises and equipment are reported at cost less accumulated depreciation and amortization, except for land, which is reported at cost. Buildings, data processing and other equipment, computer software, furniture and fixtures are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, the estimated useful life of the improvements or 10 years. Capitalized software development costs are amortized on a straight-line basis over the estimated useful life of the software. Generally, the estimated useful lives are as follows: buildings – 40 years; data processing and other equipment – 3 to 5 years; computer software – 3 to 5 years; and furniture and fixtures – 10 years.

Goodwill and Other Acquisition-Related Intangible Assets

Goodwill and Other Acquisition-Related Intangible Assets

An acquirer in a business combination is required, upon initially obtaining control of another entity, to recognize the assets, liabilities and any non-controlling interest in the acquiree at fair value as of the acquisition date. Contingent consideration, if any, is also recognized and measured at fair value on the date of acquisition. In addition, the accounting standards for business combinations require that: (i) acquisition-related transaction costs be expensed as incurred; (ii) specific requirements be met in order to accrue for a restructuring plan as part of the acquisition; (iii) certain pre-acquisition contingencies be recognized at fair value; and (iv) acquired loans be recorded at fair value as of the acquisition date without recognition of an allowance for loan losses.

Intangible assets are recognized in an amount equal to the excess of the purchase price over the fair value of the tangible net assets acquired. “Acquisition-related intangible assets” are separately identified and recognized, where appropriate, for assets such as trade names and the estimated values of acquired core deposits and/or customer relationships. The remaining intangible asset is recognized as goodwill.

Goodwill and indefinite-lived intangible assets are not amortized but, rather, are reviewed for impairment at least annually, with impairment losses recognized as a charge to expense when they occur. Acquisition-related intangible assets other than goodwill and indefinite-lived intangible assets are amortized to expense over their estimated useful lives and are periodically reviewed by management to assess recoverability, with impairment losses recognized as a charge to expense if carrying amounts exceed fair values.

The Company’s trade name intangible is being amortized on an accelerated basis over a period of approximately 20 years, reflecting the manner in which the related benefit is expected to be realized. Core deposit intangibles are amortized over 10 years on an accelerated basis that reflects the manner in which the related benefit attributable to the acquired deposits is expected to be realized. Customer relationship intangibles are amortized on a straight-line basis (approximating the manner in which the benefit is expected to be realized) over the estimated remaining average life of those relationships (ranging from 7 to 15 years from the respective acquisition dates).

Goodwill is evaluated for impairment at the reporting unit level. For the purpose of goodwill impairment evaluations, management has identified reporting units based upon the Company’s three operating segments: Commercial Banking; Retail Banking; and Wealth Management. The impairment evaluation is performed as of an annual date or more frequently if a triggering event indicates that impairment may have occurred.

Entities have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity is not required to perform the two-step impairment test as described below. People’s United elected to perform this optional qualitative assessment in its evaluation of goodwill impairment as of October 1st (the annual impairment evaluation date) in 2013, and concluded that performance of the two-step impairment test was not required. In both 2015 and 2014, People’s United elected to perform the two-step impairment test.

The first step (“Step 1”) is used to identify potential impairment, and involves comparing each reporting unit’s estimated fair value to its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not deemed to be impaired. Should the carrying amount of the reporting unit exceed its estimated fair value, an indicator of potential impairment is deemed to exist and a second step is performed to measure the amount of such impairment, if any. At this time, none of the Company’s identified reporting units are at risk of failing the Step 1 goodwill impairment test.

The second step (“Step 2”) involves calculating the implied fair value of goodwill for each reporting unit for which impairment was indicated in Step 1. The implied fair value of goodwill is determined in a manner similar to how the amount of goodwill is determined in a business combination (i.e. by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles applicable to that reporting unit as of the impairment testing date). If the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting unit, no impairment exists. If the carrying amount of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recorded in an amount equal to such excess. An impairment loss cannot exceed the carrying amount of goodwill assigned to a reporting unit, and the loss (write-down) establishes a new carrying amount for the goodwill. Subsequent reversals of goodwill impairment losses are not permitted.

The Company estimates the fair value of its reporting units based on an appropriate weighting of values based on (i) a present-value measurement technique (discounted cash flow analysis based on internal forecasts) and (ii) market-based trading and transaction multiples. The discounted cash flow analysis is based on significant assumptions and judgments including future growth rates and discount rates reflecting management’s assessment of market participant views of the risks associated with the projected cash flows of the reporting units. The market-based trading and transaction multiples are derived from the market prices of stocks of companies that are actively traded and engaged in the same or similar businesses as the Company and the respective reporting unit. The derived multiples are then applied to the reporting unit’s financial metrics to produce an indication of value. Differences in the identification of reporting units or in the selection of valuation techniques and related assumptions could result in materially different evaluations of goodwill impairment.

Real Estate Owned

Real Estate Owned

Real estate owned (“REO”) properties acquired through foreclosure or deed-in-lieu of foreclosure are recorded initially at the lower of cost or estimated fair value less costs to sell. Any write-down of the recorded investment in the related loan is charged to the allowance for loan losses upon transfer to REO. Thereafter, an allowance for REO losses is established for any further declines in the property’s value. This allowance is increased by provisions charged to income and decreased by charge-offs for realized losses. Management’s periodic evaluation of the adequacy of the allowance is based on an analysis of individual properties, as well as a general assessment of current real estate market conditions.

Income Taxes

Income Taxes

Deferred taxes are recognized for the estimated future tax effects attributable to “temporary differences” and tax loss carryforwards. Temporary differences are differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. A deferred tax liability is recognized for all temporary differences that will result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions and for all tax loss carryforwards, subject to reduction of the asset by a valuation allowance in certain circumstances. This valuation allowance is recognized if, based on an analysis of available evidence, management determines that it is more likely than not that some portion or all of the deferred tax asset will not be realized. The valuation allowance is subject to ongoing adjustment based on changes in circumstances that affect management’s judgment about the realizability of the deferred tax asset.

Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to future taxable income. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in income tax expense in the period that includes the enactment date of the change. Tax benefits attributable to deductions in excess of financial statement amounts arising from the exercise of non-statutory stock options are credited to additional paid-in capital.

Individual tax positions taken or expected to be taken on a tax return must satisfy certain criteria in order for some or all of the related tax benefits to be recognized in the financial statements. Specifically, a recognition threshold of more-likely-than-not must be met in order to recognize those tax benefits.

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method.

Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Companies that have such participating securities, including People’s United, are required to calculate basic and diluted EPS using the two-class method. Restricted stock awards granted by People’s United are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities.

Derivative Financial Instruments and Hedging Activities

Derivative Financial Instruments and Hedging Activities

People’s United uses derivative financial instruments as components of its market risk management (principally to manage interest rate risk (“IRR”)). Certain other derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes.

All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Condition, reported at fair value and presented on a gross basis. Until a derivative is settled, a favorable change in fair value results in an unrealized gain that is recognized as an asset, while an unfavorable change in fair value results in an unrealized loss that is recognized as a liability.

The Company generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exist between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. The hedge accounting method depends upon whether the derivative instrument is classified as a fair value hedge (i.e. hedging an exposure related to a recognized asset or liability, or a firm commitment) or a cash flow hedge (i.e. hedging an exposure related to the variability of future cash flows associated with a recognized asset or liability, or a forecasted transaction). Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recorded in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income (loss) until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings.

People’s United formally documents at inception all relationships between the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. This process includes linking all derivatives that are designated as hedges to specific assets and liabilities, or to specific firm commitments or forecasted transactions. People’s United also formally assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of the hedged items. If it is determined that a derivative is not highly effective or has ceased to be a highly effective hedge, People’s United would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in AOCL and are amortized to earnings over the remaining period of the former hedging relationship, provided the hedged item continues to be outstanding or it is probable the forecasted transaction will occur.

People’s United uses the dollar offset method, regression analysis and scenario analysis to assess hedge effectiveness at inception and on an ongoing basis. Such methods are chosen based on the nature of the hedge strategy and are used consistently throughout the life of the hedging relationship.

Certain derivative financial instruments are offered to commercial customers to assist them in meeting their financing and investing objectives and for their risk management purposes. These derivative financial instruments consist primarily of interest rate swaps, but also include foreign exchange contracts. The interest rate and foreign exchange risks associated with customer interest rate swaps and foreign exchange contracts are mitigated by entering into similar derivatives having essentially offsetting terms with institutional counterparties.

Interest rate-lock commitments extended to borrowers relate to the origination of residential mortgage loans. To mitigate the IRR inherent in these commitments, People’s United enters into mandatory delivery and best efforts contracts to sell adjustable-rate and fixed-rate residential mortgage loans (servicing released). Forward commitments to sell and interest rate-lock commitments on residential mortgage loans are considered derivatives and their respective estimated fair values are adjusted based on changes in interest rates.

Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings, including customer derivatives, interest-rate lock commitments and forward sale commitments.

Balance Sheet Offsetting

Balance Sheet Offsetting

Assets and liabilities relating to certain financial instruments, including derivatives, may be eligible for offset in the Consolidated Statements of Condition and/or subject to enforceable master netting arrangements or similar agreements. People’s United’s derivative transactions with institutional counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements, which include “right of set-off” provisions that provide for a single net settlement of all interest rate swap positions, as well as collateral, in the event of default on, or the termination of, any one contract. Nonetheless, the Company does not offset asset and liabilities under such arrangements in the Consolidated Statements of Condition.

Collateral (generally in the form of marketable debt securities) pledged by counterparties in connection with derivative transactions is not reported in the Consolidated Statements of Condition unless the counterparty defaults. Collateral that has been pledged by People’s United to counterparties continues to be reported in the Consolidated Statements of Condition unless the Company defaults.

Fair Value Measurements

Fair Value Measurements

Accounting standards related to fair value measurements define fair value, provide a framework for measuring fair value and establish related disclosure requirements. Broadly, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accordingly, an “exit price” approach is required in determining fair value. In support of this principle, a fair value hierarchy has been established that prioritizes the inputs used to measure fair value, requiring entities to maximize the use of market or observable inputs (as more reliable measures) and minimize the use of unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs generally require significant management judgment.

The three levels within the fair value hierarchy are as follows:

• Level 1 – Unadjusted quoted market prices for identical assets or liabilities in active markets that the entity has the ability to access at the measurement date (such as active exchange-traded equity securities or mutual funds and certain U.S. and government agency debt securities).

• Level 2 – Observable inputs other than quoted prices included in Level 1, such as:

• quoted prices for similar assets or liabilities in active markets (such as U.S. agency and GSE issued mortgage-backed securities and CMOs);

• quoted prices for identical or similar assets or liabilities in less active markets (such as certain U.S. and government agency debt securities, and corporate and municipal debt securities that trade infrequently); and

• other inputs that (i) are observable for substantially the full term of the asset or liability (e.g. interest rates, yield curves, prepayment speeds, default rates, etc.) or (ii) can be corroborated by observable market data (such as interest rate and currency derivatives and certain other securities).

• Level 3 – Valuation techniques that require unobservable inputs that are supported by little or no market activity and are significant to the fair value measurement of the asset or liability (such as pricing models, discounted cash flow methodologies and similar techniques that typically reflect management’s own estimates of the assumptions a market participant would use in pricing the asset or liability).

People’s United maintains policies and procedures to value assets and liabilities using the most relevant data available.

Stock-Based Compensation

Stock-Based Compensation

People’s United’s stock-based compensation plans provide for awards of stock options and restricted stock to directors, officers and employees. Costs resulting from the issuance of such share-based payment awards are required to be recognized in the financial statements based on the grant date fair value of the award. Stock-based compensation expense is recognized over the requisite service period, which is generally the vesting period.

New Accounting Standards

New Accounting Standards

Standards effective in 2015

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure

In January 2014, the Financial Accounting Standards Board (the “FASB”) amended its standards with respect to the accounting for consumer mortgage loans collateralized by residential real estate to clarify that such loans should, upon foreclosure, be reclassified by a creditor as REO when either (i) the creditor obtains legal title to the real estate collateral or (ii) a deed in lieu of foreclosure, conveying all interest in the real estate to the creditor, is completed. In addition, the amendment requires a creditor to provide additional disclosures with respect to (i) the amount of residential real estate meeting the conditions set forth above and (ii) the recorded investment in consumer mortgage loans secured by residential real estate properties that are in the process of foreclosure. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2015 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Repurchase Agreements

In June 2014, the FASB amended its standards with respect to repurchase agreements to (i) require that repurchase-to-maturity transactions be accounted for as secured borrowings, thereby eliminating the possibility of such transactions qualifying for sale accounting treatment, and (ii) eliminate existing guidance for repurchase financings. The amendment also requires enhanced disclosures for certain transactions accounted for as secured borrowings and transfers accounted for as sales when the transferor also retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. In adopting this new guidance, all entities must report changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. This amendment became effective for People’s United on January 1, 2015 and did not have a significant impact on the Company’s Consolidated Financial Statements as none of the Company’s repurchase agreements represent repurchase-to-maturity transactions or repurchase financings and all repurchase agreements have been accounted for as secured borrowings.

Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure

In August 2014, the FASB amended its standards with respect to the classification of certain government-guaranteed residential mortgage loans to clarify that upon foreclosure of mortgage loans within the scope of the standard, a creditor will be required to reclassify the previously existing mortgage loan to a separate receivable from the guarantor, measured at the amount of the guarantee that it expects to collect. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2015 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Standards effective in 2016

Stock Compensation

In June 2014, the FASB amended its standards with respect to stock compensation to require that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. The amendment further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to those periods for which the requisite service has already been rendered. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. The adoption of this amendment, for which early adoption is permitted, is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Consolidation

In February 2015, the FASB amended its standards with respect to the analysis that a reporting entity must perform in determining whether certain types of legal entities should be consolidated. The amendment modifies the evaluation of whether limited partnerships or similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This new guidance, which can be applied retrospectively or through the use of the cumulative effect transition method, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) with early adoption permitted. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Presentation of Debt Issuance Costs

In April 2015, the FASB amended its standards with respect to the presentation of debt issuance costs by changing the required presentation of such costs from an asset on the balance sheet to a deduction from the related debt liability. For public business entities, this new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) and is to be applied retrospectively. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Retirement Benefits

In April 2015, the FASB amended its standards with respect to the accounting for retirement benefits by providing a practical expedient, for entities with fiscal year-ends that do not coincide with a month-end, permitting such entities to measure defined benefit plan assets and obligations using the month-end that is closest to its fiscal year-end. This practical expedient is to be applied consistently from year to year and to all plans if an entity has more than one plan. Further, in cases where a significant event caused by the entity (such as a plan amendment, curtailment or settlement) that requires the remeasurement of defined benefit plan assets and obligations does not coincide with a month-end, entities may elect to remeasure both plan assets and obligations using the month-end that is closest to the date of the significant event. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (January 1, 2016 for People’s United) and are to be applied prospectively. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Business Combinations

In September 2015, the FASB amended its standards with respect to business combinations to eliminate the requirement to restate prior period financial statements for measurement period adjustments. Instead, the amended guidance requires that, during the measurement period, an acquirer recognize adjustments of previously recorded provisional amounts in the reporting period in which such adjustments are determined. In doing so, the acquirer would be required to record the cumulative effect of measurement period adjustments on current and prior period earnings, including the prior period impact on depreciation, amortization or other income statement items. The amended standard also contains additional disclosure requirements with respect to measurement period adjustments. This new guidance is effective for fiscal years beginning after December 15, 2015 (January 1, 2016 for People’s United) and is to be applied prospectively. Earlier application is permitted for financial statements that have not yet been made available for issuance. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Standards effective in 2018

Revenue Recognition

In May 2014, the FASB amended its standards with respect to revenue recognition. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance, providing a unified model to determine when and how revenue is recognized. The underlying principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments also require enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. As originally issued, this new guidance, which can be applied retrospectively or through the use of the cumulative effect transition method, was to become effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2016 (January 1, 2017 for People’s United) and early adoption was not permitted. In July 2015, the FASB approved a one-year deferral of the effective date (to January 1, 2018 for People’s United) with early adoption, as of the original effective date, permitted. The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements.

Presentation of Deferred Taxes

In December 2015, the FASB amended its standards with respect to the presentation of deferred income taxes to eliminate the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial condition, thereby simplifying the presentation of deferred income taxes. For public business entities, this new amendment is effective for annual periods beginning after December 15, 2017 (January 1, 2018 for People’s United) and may be applied either prospectively or retrospectively to all periods presented. Earlier application of the amendment is permitted as of the beginning of an interim or annual reporting period. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Recognition and Measurement of Financial Instruments

In January 2016, the FASB amended its standards to address certain aspects of recognition, presentation and disclosure of financial instruments. The amended guidance (i) requires that equity investments be measured at fair value with changes in fair value recognized in net income and (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by permitting a qualitative assessment to identify impairment. The guidance also contains additional disclosure and presentation requirements associated with financial instruments. For public business entities this new guidance is effective in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United). The cumulative effect transition method will be applied to all outstanding instruments as of the date of adoption, while changes to the accounting for equity investments without readily determinable fair values will be applied prospectively. The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements.

Standards effective in 2019

Accounting for Leases

In February 2016, the FASB amended its standards with respect to the accounting for leases. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and requires that an operating lease be recognized on the statement of financial condition as a “right-to-use” asset along with a corresponding liability representing the rent obligation. Key aspects of current lessor accounting remain unchanged from existing guidance. This standard is expected to result in an increase to assets and liabilities recognized and, therefore, increase risk-weighted assets for regulatory capital purposes. The guidance requires the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application and will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (January 1, 2019 for People’s United). The Company is currently evaluating the impact of the amended guidance on the Company’s Consolidated Financial Statements.

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Cash and Short-Term Investments (Tables)

12 Months Ended

Dec. 31, 2015

Cash and Cash Equivalents [Abstract]

Cash and Short-Term Investments

Short-term investments consist of the following cash equivalents:

As of December 31 (in millions)	2015		2014
Interest-bearing deposits at the FRB-NY	$	333.7	$	626.5
Money market mutual funds		8.0		7.3
Other (1)		38.8		34.8
Total short-term investments	$	380.5	$	668.6

(1) Includes cash collateral posted for certain derivative positions.

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Securities (Tables)

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Available-for-Sale and Held-to-Maturity Securities Gains (Losses)

The amortized cost, gross unrealized gains and losses, and fair value of People’s United’s securities available for sale and securities held to maturity are as follows:

As of December 31, 2015 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	363.7	$	0.2	$	(1.1	)	$	362.8
GSE residential mortgage-backed securities and CMOs		4,191.3		22.3		(48.9	)		4,164.7
Total debt securities		4,555.0		22.5		(50.0	)		4,527.5
Equity securities		0.2		—		—			0.2
Total securities available for sale	$	4,555.2	$	22.5	$	(50.0	)	$	4,527.7
Securities held to maturity:
Debt securities:
State and municipal	$	1,019.6	$	55.8	$	(0.1	)	$	1,075.3
GSE residential mortgage-backed securities		588.5		—		(2.8	)		585.7
Other		1.5		—		—			1.5
Total securities held to maturity	$	1,609.6	$	55.8	$	(2.9	)	$	1,662.5

As of December 31, 2014 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	56.5	$	0.3	$	—		$	56.8
GSE residential mortgage-backed securities and CMOs		3,943.4		39.7		(46.4	)		3,936.7
Total debt securities		3,999.9		40.0		(46.4	)		3,993.5
Equity securities		0.2		—		—			0.2
Total securities available for sale	$	4,000.1	$	40.0	$	(46.4	)	$	3,993.7
Securities held to maturity:
Debt securities:
State and municipal	$	832.8	$	47.4	$	(0.1	)	$	880.1
Other		1.5		—		—			1.5
Total securities held to maturity	$	834.3	$	47.4	$	(0.1	)	$	881.6

Summary of Amortized Cost, Fair Value and Fully Taxable Equivalent Yield of Debt Securities Remaining Period to Contractual Maturity

The following table is a summary of the amortized cost, fair value and fully taxable equivalent (“FTE”) yield of debt securities as of December 31, 2015, based on remaining period to contractual maturity. Information for GSE residential mortgage-backed securities and CMOs is based on the final contractual maturity dates without considering repayments and prepayments.

	Available for Sale							Held to Maturity
(dollars in millions)	Amortized Cost		Fair Value		FTE Yield			Amortized Cost		Fair Value		FTE Yield
U.S. Treasury and agency:
Within 1 year	$	31.1	$	31.1		0.57	%	$	—	$	—		—	%
After 1 but within 5 years		332.6		331.7		1.05			—		—		—
Total		363.7		362.8		1.01			—		—		—
GSE residential mortgage-backed securities and CMOs:
After 5 but within 10 years		860.3		871.8		2.24			—		—		—
After 10 years		3,331.0		3,292.9		1.89			588.5		585.7		2.22
Total		4,191.3		4,164.7		1.96			588.5		585.7		2.22
State and municipal:
Within 1 year		—		—		—			3.9		3.9		4.20
After 1 but within 5 years		—		—		—			22.2		22.6		4.99
After 5 but within 10 years		—		—		—			353.0		376.9		3.36
After 10 years		—		—		—			640.5		671.9		4.56
Total		—		—		—			1,019.6		1,075.3		4.16
Other:
After 1 but within 5 years		—		—		—			1.5		1.5		2.10
Total		—		—		—			1.5		1.5		2.10
Total:
Within 1 year		31.1		31.1		0.57			3.9		3.9		4.20
After 1 but within 5 years		332.6		331.7		1.05			23.7		24.1		4.80
After 5 but within 10 years		860.3		871.8		2.24			353.0		376.9		3.36
After 10 years		3,331.0		3,292.9		1.89			1,229.0		1,257.6		3.44
Total	$	4,555.0	$	4,527.5		1.88	%	$	1,609.6	$	1,662.5		3.45	%

Continuous Unrealized Loss Position on Available-for-Sale and Held-to-Maturities Securities

The following tables summarize debt securities with unrealized losses, segregated by the length of time the securities have been in a continuous unrealized loss position at the respective dates. Certain unrealized losses totaled less than $0.1 million.

	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months Or Longer					Total
As of December 31, 2015 (in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE residential mortgage-backed securities and CMOs	$	2,200.8	$	(20.3	)	$	933.9	$	(28.6	)	$	3,134.7	$	(48.9	)
U.S. Treasury and agency		346.3		(1.1	)		—		—			346.3		(1.1	)
Securities held to maturity:
GSE residential mortgage-backed securities		585.7		(2.8	)		—		—			585.7		(2.8	)
State and municipal		22.3		(0.1	)		3.7		—			26.0		(0.1	)
Total	$	3,155.1	$	(24.3	)	$	937.6	$	(28.6	)	$	4,092.7	$	(52.9	)
	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months Or Longer					Total
As of December 31, 2014 (in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE residential mortgage-backed securities and CMOs	$	111.9	$	(0.1	)	$	1,744.2	$	(46.3	)	$	1,856.1	$	(46.4	)
Securities held to maturity:
State and municipal		31.8		(0.1	)		—		—			31.8		(0.1	)
Total	$	143.7	$	(0.2	)	$	1,744.2	$	(46.3	)	$	1,887.9	$	(46.5	)

Schedule of Gains and Losses from Sales of Debt Securities

the table below, totaled less than $0.1 million for each of the years ended December 31, 2015, 2014 and 2013.

Years ended December 31 (in millions)	2015			2014			2013
Debt securities:
Gains	$	0.3		$	4.4		$	—
Losses		(0.3	)		(1.4	)		—
Net security gains	$	—		$	3.0		$	—

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Loans (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Summary of Loans by Loan Portfolio Segment and Class

The following table summarizes People’s United’s loans by loan portfolio segment and class:

	2015						2014
As of December 31 (in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Commercial:
Commercial real estate	$	9,696.9	$	331.9	$	10,028.8	$	8,960.3	$	444.0	$	9,404.3
Commercial and industrial		7,526.4		222.3		7,748.7		6,891.1		298.5		7,189.6
Equipment financing		2,957.6		15.7		2,973.3		2,839.0		26.5		2,865.5
Total commercial		10,484.0		238.0		10,722.0		9,730.1		325.0		10,055.1
Total Commercial Portfolio		20,180.9		569.9		20,750.8		18,690.4		769.0		19,459.4
Retail:
Residential mortgage:
Adjustable-rate		4,733.3		117.9		4,851.2		4,254.7		139.1		4,393.8
Fixed-rate		536.1		69.7		605.8		446.8		91.4		538.2
Total residential mortgage		5,269.4		187.6		5,457.0		4,701.5		230.5		4,932.0
Consumer:
Home equity		2,115.5		38.2		2,153.7		2,092.9		50.2		2,143.1
Other consumer		48.5		0.9		49.4		56.3		1.2		57.5
Total consumer		2,164.0		39.1		2,203.1		2,149.2		51.4		2,200.6
Total Retail Portfolio		7,433.4		226.7		7,660.1		6,850.7		281.9		7,132.6
Total loans	$	27,614.3	$	796.6	$	28,410.9	$	25,541.1	$	1,050.9	$	26,592.0

Summary, by Loan Portfolio Segment, of Activity in Allowance for Loan Losses

The following table presents a summary, by loan portfolio segment, of activity in the allowance for loan losses for the years ended December 31, 2015, 2014 and 2013. With respect to the originated portfolio, an allocation of a portion of the allowance to one segment does not preclude its availability to absorb losses in another segment.

	Commercial									Retail
(in millions)	Originated			Acquired			Total			Originated			Acquired			Total			Total
Balance at December 31, 2012	$	157.5		$	10.5		$	168.0		$	20.0		$	—		$	20.0		$	188.0
Charge-offs		(29.7	)		(4.1	)		(33.8	)		(16.0	)		(0.3	)		(16.3	)		(50.1	)
Recoveries		3.7			—			3.7			2.5			—			2.5			6.2
Net loan charge-offs		(26.0	)		(4.1	)		(30.1	)		(13.5	)		(0.3	)		(13.8	)		(43.9	)
Provision for loan losses		27.0			3.4			30.4			12.5			0.8			13.3			43.7
Balance at December 31, 2013		158.5			9.8			168.3			19.0			0.5			19.5			187.8
Charge-offs		(22.3	)		(2.6	)		(24.9	)		(11.1	)		(0.1	)		(11.2	)		(36.1	)
Recoveries		3.6			—			3.6			2.4			—			2.4			6.0
Net loan charge-offs		(18.7	)		(2.6	)		(21.3	)		(8.7	)		(0.1	)		(8.8	)		(30.1	)
Provision for loan losses		29.8			2.6			32.4			8.2			—			8.2			40.6
Balance at December 31, 2014		169.6			9.8			179.4			18.5			0.4			18.9			198.3
Charge-offs		(20.1	)		—			(20.1	)		(7.9	)		—			(7.9	)		(28.0	)
Recoveries		4.9			—			4.9			2.4			—			2.4			7.3
Net loan charge-offs		(15.2	)		—			(15.2	)		(5.5	)		—			(5.5	)		(20.7	)
Provision for loan losses		27.4			(1.9	)		25.5			8.1			(0.2	)		7.9			33.4
Balance at December 31, 2015	$	181.8		$	7.9		$	189.7		$	21.1		$	0.2		$	21.3		$	211.0

Summary of Allowance for Loan Losses by Loan Portfolio Segment and Impairment Methodology

The following is a summary, by loan portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio balances:

	Originated Loans Individually Evaluated for Impairment				Originated Loans Collectively Evaluated for Impairment				Acquired Loans (Discounts Related to Credit Quality)				Total
As of December 31, 2015 (in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	155.1	$	5.5	$	20,025.8	$	176.3	$	569.9	$	7.9	$	20,750.8	$	189.7
Retail		97.0		3.9		7,336.4		17.2		226.7		0.2		7,660.1		21.3
Total	$	252.1	$	9.4	$	27,362.2	$	193.5	$	796.6	$	8.1	$	28,410.9	$	211.0
	Originated Loans Individually Evaluated for Impairment				Originated Loans Collectively Evaluated for Impairment				Acquired Loans (Discounts Related to Credit Quality)				Total
As of December 31, 2014 (in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	174.5	$	7.6	$	18,515.9	$	162.0	$	769.0	$	9.8	$	19,459.4	$	179.4
Retail		95.0		3.9		6,755.7		14.6		281.9		0.4		7,132.6		18.9
Total	$	269.5	$	11.5	$	25,271.6	$	176.6	$	1,050.9	$	10.2	$	26,592.0	$	198.3

Summarized Recorded Investments, by Class of Loan, of Originated Non-Performing Loans

The recorded investments, by class of loan, of originated non-performing loans are summarized as follows:

As of December 31 (in millions)	2015		2014		2013
Commercial:
Commercial and industrial	$	44.9	$	55.8	$	43.8
Commercial real estate		30.2		60.2		70.8
Equipment financing		27.5		25.4		23.2
Total (1)		102.6		141.4		137.8
Retail:
Residential mortgage		37.2		37.6		58.9
Home equity		19.5		17.9		19.8
Other consumer		0.1		0.1		0.1
Total (2)		56.8		55.6		78.8
Total	$	159.4	$	197.0	$	216.6

(1) Reported net of government guarantees totaling $16.9 million, $17.6 million and $19.4 million at December 31, 2015, 2014 and 2013, respectively. These government guarantees relate, almost entirely, to guarantees provided by the Small Business Administration as well as selected other Federal agencies and represent the carrying value of the loans that are covered by such guarantees, the extent of which (i.e. full or partial) varies by loan. At December 31, 2015, the principal loan classes to which these government guarantees relate are commercial and industrial loans (99%) and commercial real estate loans (1%).

(2) Includes $19.9 million, $18.9 million and $28.7 million of loans in the process of foreclosure at December 31, 2015, 2014 and 2013, respectively.

Summary of Recorded Investments in TDRs by Class of Loan

The following tables summarize, by class of loan, the recorded investments in loans modified as TDRs during the years ended December 31, 2015 and 2014. For purposes of this disclosure, recorded investments represent amounts immediately prior to and subsequent to the restructuring.

	Year ended December 31, 2015
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		26	$	15.2	$	15.2
Commercial and industrial (2)		61		80.6		80.6
Equipment financing (3)		48		28.5		28.5
Total		135		124.3		124.3
Retail:
Residential mortgage (4)		66		20.1		20.1
Home equity (5)		98		9.5		9.5
Other consumer		—		—		—
Total		164		29.6		29.6
Total		299	$	153.9	$	153.9

(1) Represents the following concessions: extension of term (21 contracts; recorded investment of $8.9 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $1.2 million); or a combination of concessions (3 contracts; recorded investment of $5.1 million).

(2) Represents the following concessions: extension of term (35 contracts; recorded investment of $41.1 million); reduced payment and/or payment deferral (20 contracts; recorded investment of $35.9 million); or a combination of concessions (6 contracts; recorded investment of $3.6 million).

(3) Represents the following concessions: extension of term (1 contract; recorded investment of $0.1 million); reduced payment and/or payment deferral (38 contracts; recorded investment of $21.5 million); or a combination of concessions (9 contracts; recorded investment of $6.9 million).

(4) Represents the following concessions: loans restructured through bankruptcy (24 contracts; recorded investment of $5.9 million); reduced payment and/or payment deferral (13 contracts; recorded investment of $4.7 million); temporary rate reduction (2 contracts; recorded investment of $0.3 million); or a combination of concessions (27 contracts; recorded investment of $9.2 million).

(5) Represents the following concessions: loans restructured through bankruptcy (61 contracts; recorded investment of $5.2 million); reduced payment and/or payment deferral (7 contracts; recorded investment of $0.8 million); temporary rate reduction (1 contract; recorded investment of $0.5 million); or a combination of concessions (29 contracts; recorded investment of $3.0 million).

	Year ended December 31, 2014
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		25	$	36.2	$	36.2
Commercial and industrial (2)		50		43.1		43.1
Equipment financing (3)		28		7.1		7.1
Total		103		86.4		86.4
Retail:
Residential mortgage (4)		130		40.3		40.3
Home equity (5)		135		12.2		12.2
Other consumer		—		—		—
Total		265		52.5		52.5
Total		368	$	138.9	$	138.9

(1) Represents the following concessions: extension of term (16 contracts; recorded investment of $13.5 million); reduced payment and/or payment deferral (4 contracts; recorded investment of $1.8 million); temporary rate reduction (1 contract; recorded investment of $18.2 million); or a combination of concessions (4 contracts; recorded investment of $2.7 million).

(2) Represents the following concessions: extension of term (20 contracts; recorded investment of $15.3 million); reduced payment and/or payment deferral (8 contracts; recorded investment of $2.4 million); or a combination of concessions (22 contracts; recorded investment of $25.4 million).

(3) Represents the following concessions: reduced payment and/or payment deferral (11 contracts; recorded investment of $2.0 million); or a combination of concessions (17 contracts; recorded investment of $5.1 million).

(4) Represents the following concessions: loans restructured through bankruptcy (29 contracts; recorded investment of $5.0 million); extension of term (1 contract; recorded investment of $0.6 million); reduced payment and/or payment deferral (32 contracts; recorded investment of $10.0 million); or a combination of concessions (68 contracts; recorded investment of $24.7 million).

(5) Represents the following concessions: loans restructured through bankruptcy (67 contracts; recorded investment of $5.6 million); reduced payment and/or payment deferral (20 contracts; recorded investment of $2.3 million); temporary rate reduction (2 contracts; recorded investment of $0.6 million); or a combination of concessions (46 contracts; recorded investment of $3.7 million).

Summary of Recorded Investments in TDRs by Class of Loan, Subsequently Defaulted

The following is a summary, by class of loan, of information related to TDRs of originated loans completed within the previous 12 months that subsequently defaulted during the years ended December 31, 2015 and 2014. For purposes of this disclosure, the previous 12 months is measured from January 1 of the respective prior year and a default represents a previously-modified loan that became past due 30 days or more during 2015 or 2014.

	2015				2014
Years ended December 31 (dollars in millions)	Number of Contracts		Recorded Investment as of Period End		Number of Contracts		Recorded Investment as of Period End
Commercial:
Commercial real estate		5	$	3.2		6	$	3.8
Commercial and industrial		4		1.2		4		1.1
Equipment financing		9		4.5		4		0.8
Total		18		8.9		14		5.7
Retail:
Residential mortgage		17		2.6		42		7.8
Home equity		16		1.8		24		1.6
Other consumer		—		—		—		—
Total		33		4.4		66		9.4
Total		51	$	13.3		80	$	15.1

Summary of Individually-Evaluated Impaired Loans by Class of Loan

People’s United’s impaired loans consist of certain originated loans, including all TDRs. The following table summarizes, by class of loan, information related to individually-evaluated impaired loans within the originated portfolio.

	2015						2014
As of December 31 (in millions)	Unpaid Principal Balance		Recorded Investment		Related Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Related Allowance for Loan Losses
Without a related allowance for loan losses:
Commercial:
Commercial real estate	$	46.5	$	45.3	$	—	$	57.1	$	55.8	$	—
Commercial and industrial		53.2		50.8		—		51.7		48.6		—
Equipment financing		32.6		26.0		—		30.2		21.4		—
Retail:
Residential mortgage		67.2		60.4		—		65.4		58.9		—
Home equity		23.3		20.5		—		21.3		18.3		—
Other consumer		—		—		—		—		—		—
Total	$	222.8	$	203.0	$	—	$	225.7	$	203.0	$	—
With a related allowance for loan losses:
Commercial:
Commercial real estate	$	18.8	$	14.7	$	1.9	$	52.1	$	27.8	$	4.0
Commercial and industrial		19.2		14.7		3.3		21.4		17.4		3.5
Equipment financing		3.8		3.6		0.3		3.6		3.5		0.1
Retail:
Residential mortgage		14.1		14.0		2.9		15.6		15.3		2.6
Home equity		2.3		2.1		1.0		2.6		2.5		1.3
Other consumer		—		—		—		—		—		—
Total	$	58.2	$	49.1	$	9.4	$	95.3	$	66.5	$	11.5
Total impaired loans:
Commercial:
Commercial real estate	$	65.3	$	60.0	$	1.9	$	109.2	$	83.6	$	4.0
Commercial and industrial		72.4		65.5		3.3		73.1		66.0		3.5
Equipment financing		36.4		29.6		0.3		33.8		24.9		0.1
Total		174.1		155.1		5.5		216.1		174.5		7.6
Retail:
Residential mortgage		81.3		74.4		2.9		81.0		74.2		2.6
Home equity		25.6		22.6		1.0		23.9		20.8		1.3
Other consumer		—		—		—		—		—		—
Total		106.9		97.0		3.9		104.9		95.0		3.9
Total	$	281.0	$	252.1	$	9.4	$	321.0	$	269.5	$	11.5

Schedule of Impaired Financing Receivable

The following table summarizes, by class of loan, the average recorded investment and interest income recognized on impaired loans for the periods indicated. The average recorded investment amounts are based on month-end balances.

	2015				2014				2013
Years ended December 31 (in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	65.6	$	1.6	$	76.6	$	1.3	$	84.1	$	1.0
Commercial and industrial		71.6		1.8		46.4		1.1		58.5		1.0
Equipment financing		28.0		0.9		28.6		0.7		32.1		1.5
Total		165.2		4.3		151.6		3.1		174.7		3.5
Retail:
Residential mortgage		75.2		1.5		71.8		1.5		55.0		1.1
Home equity		21.2		0.3		18.0		0.2		14.0		0.1
Other consumer		—		—		—		—		—		—
Total		96.4		1.8		89.8		1.7		69.0		1.2
Total	$	261.6	$	6.1	$	241.4	$	4.8	$	243.7	$	4.7

Summary of Aging Information by Class of Loan

The following tables summarize, by class of loan, aging information for originated loans:

			Past Due
As of December 31, 2015 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	9,667.7	$	15.0	$	14.2	$	29.2	$	9,696.9
Commercial and industrial		7,466.5		13.1		46.8		59.9		7,526.4
Equipment financing		2,886.7		63.9		7.0		70.9		2,957.6
Total		20,020.9		92.0		68.0		160.0		20,180.9
Retail:
Residential mortgage		5,212.9		31.1		25.4		56.5		5,269.4
Home equity		2,098.9		7.1		9.5		16.6		2,115.5
Other consumer		48.2		0.2		0.1		0.3		48.5
Total		7,360.0		38.4		35.0		73.4		7,433.4
Total originated loans	$	27,380.9	$	130.4	$	103.0	$	233.4	$	27,614.3

			Past Due
As of December 31, 2014 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	8,908.0	$	17.6	$	34.7	$	52.3	$	8,960.3
Commercial and industrial		6,814.9		32.4		43.8		76.2		6,891.1
Equipment financing		2,793.3		41.0		4.7		45.7		2,839.0
Total		18,516.2		91.0		83.2		174.2		18,690.4
Retail:
Residential mortgage		4,647.3		29.1		25.1		54.2		4,701.5
Home equity		2,079.3		5.0		8.6		13.6		2,092.9
Other consumer		55.8		0.4		0.1		0.5		56.3
Total		6,782.4		34.5		33.8		68.3		6,850.7
Total originated loans	$	25,298.6	$	125.5	$	117.0	$	242.5	$	25,541.1

Summary of Credit Quality Indicators by Class of Loan

The following is a summary, by class of loan, of credit quality indicators:

As of December 31, 2015 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,438.6	$	7,153.4	$	2,550.0	$	19,142.0
Special mention		130.6		121.0		119.1		370.7
Substandard		127.7		250.5		288.5		666.7
Doubtful		—		1.5		—		1.5
Total originated loans		9,696.9		7,526.4		2,957.6		20,180.9
Acquired loans:
Pass		260.9		175.9		6.1		442.9
Special mention		20.1		6.6		5.0		31.7
Substandard		49.1		39.8		4.6		93.5
Doubtful		1.8		—		—		1.8
Total acquired loans		331.9		222.3		15.7		569.9
Total	$	10,028.8	$	7,748.7	$	2,973.3	$	20,750.8
As of December 31, 2015 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	2,579.3	$	959.2	$	25.8	$	3,564.3
Moderate risk		2,208.6		651.2		7.9		2,867.7
High risk		481.5		505.1		14.8		1,001.4
Total originated loans		5,269.4		2,115.5		48.5		7,433.4
Acquired loans:
Low risk		97.7		—		—		97.7
Moderate risk		36.2		—		—		36.2
High risk		53.7		38.2		0.9		92.8
Total acquired loans		187.6		38.2		0.9		226.7
Total	$	5,457.0	$	2,153.7	$	49.4	$	7,660.1

As of December 31, 2014 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	8,730.9	$	6,477.4	$	2,481.2	$	17,689.5
Special mention		82.4		114.2		110.6		307.2
Substandard		135.3		297.3		247.2		679.8
Doubtful		11.7		2.2		—		13.9
Total originated loans		8,960.3		6,891.1		2,839.0		18,690.4
Acquired loans:
Pass		302.5		174.5		7.6		484.6
Special mention		20.9		52.8		0.7		74.4
Substandard		113.5		55.0		18.2		186.7
Doubtful		7.1		16.2		—		23.3
Total acquired loans		444.0		298.5		26.5		769.0
Total	$	9,404.3	$	7,189.6	$	2,865.5	$	19,459.4
As of December 31, 2014 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	2,280.6	$	931.5	$	29.5	$	3,241.6
Moderate risk		1,921.6		597.1		8.3		2,527.0
High risk		499.3		564.3		18.5		1,082.1
Total originated loans		4,701.5		2,092.9		56.3		6,850.7
Acquired loans:
Low risk		107.0		—		—		107.0
Moderate risk		50.5		—		—		50.5
High risk		73.0		50.2		1.2		124.4
Total acquired loans		230.5		50.2		1.2		281.9
Total	$	4,932.0	$	2,143.1	$	57.5	$	7,132.6

Summarized Activity in Accretable Yield for Acquired Loan Portfolio

The following table summarizes activity in the accretable yield for the acquired loan portfolio:

Years ended December 31 (in millions)	2015			2014			2013
Balance at beginning of period	$	396.3		$	639.7		$	890.2
Accretion		(55.5	)		(81.0	)		(127.1	)
Reclassification from nonaccretable difference for loans with improved cash flows (1)		1.1			6.7			5.3
Other changes in expected cash flows (2)		(45.9	)		(169.1	)		(128.7	)
Balance at end of period	$	296.0		$	396.3		$	639.7

(1) Results in increased interest accretion as a prospective yield adjustment over the remaining life of the corresponding pool of loans.

(2) Represents changes in cash flows expected to be collected due to factors other than credit (e.g. changes in prepayment assumptions and/or changes in interest rates on variable rate loans), as well as loan sales, modifications and payoffs.

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Goodwill and Other Acquisition-Related Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of People’s United’s goodwill are summarized as follows for the year ended December 31, 2015. There were no changes in goodwill during 2014.

	Operating Segment
(in millions)	Commercial Banking		Retail Banking		Wealth Management		Total
Balance at December 31, 2014	$	1,222.8	$	681.9	$	49.8	$	1,954.5
Acquisition of insurance brokerage firm		—		—		4.2		4.2
Balance at December 31, 2015	$	1,222.8	$	681.9	$	54.0	$	1,958.7

Other Acquisition-Related Intangible

Other Acquisition-Related Intangible Assets

The following is a summary of People’s United’s other acquisition-related intangible assets:

	2015						2014
As of December 31 (in millions)	Gross Amount		Accumulated Amortization		Carrying Amount		Gross Amount		Accumulated Amortization		Carrying Amount
Trade name intangible	$	122.7	$	42.8	$	79.9	$	122.7	$	34.9	$	87.8
Core deposit intangible		143.8		120.0		23.8		143.8		107.3		36.5
Trust relationships		42.7		22.8		19.9		42.7		20.0		22.7
Insurance relationships		36.5		31.0		5.5		31.5		30.5		1.0
Total other acquisition-related intangible assets	$	345.7	$	216.6	$	129.1	$	340.7	$	192.7	$	148.0

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Components of Premises and Equipment

The components of premises and equipment are summarized below:

As of December 31 (in millions)	2015		2014
Land	$	38.8	$	39.5
Buildings		267.6		269.2
Leasehold improvements		158.2		161.6
Furniture and equipment		225.3		219.0
Total		689.9		689.3
Less: Accumulated depreciation and amortization		432.1		411.5
Total premises and equipment, net	$	257.8	$	277.8

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Other Assets and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Text Block [Abstract]

Components of Other Assets

The components of other assets are as follows:

As of December 31 (in millions)	2015		2014
Leased equipment	$	194.4	$	180.9
Fair value of derivative financial instruments (notes 18 and 20)		158.2		132.4
Accrued interest receivable		90.6		82.6
Affordable housing investments (note 11)		83.5		69.6
Assets held in trust for supplemental retirement plans (note 16)		36.5		37.1
Receivables arising from securities brokerage and insurance businesses		33.7		34.8
Funded status of defined benefit pension plans (note 16)		26.6		—
Current income tax receivable (note 11)		26.3		21.1
Investment in joint venture (1)		22.0		21.3
Economic development investments		19.8		19.4
Other prepaid expenses		15.3		16.8
Loans in process		13.1		19.6
Repossessed assets		9.5		2.5
REO:
Residential		7.1		13.6
Commercial		5.5		11.0
FDIC loss-share receivable (note 4)		3.5		5.7
Net deferred tax asset (note 11)		1.9		7.0
Other (2)		38.7		44.5
Total other assets	$	786.2	$	719.9

(1) During the quarter ended June 30, 2014, the Bank formed a joint venture with Vantiv, Inc. to provide a comprehensive suite of payment solutions to businesses throughout the Bank’s footprint. The Bank retained a 49% minority interest in the joint venture and recognized a $20.6 million gain, net of related expenses, resulting from its formation. The gain represented the fair value of the Bank’s entire portfolio of merchant contracts that were contributed to the joint venture and which previously had a zero book basis. The investment in the joint venture is accounted for using the equity method of accounting.

(2) During the quarter ended December 31, 2015, the Bank sold its payroll services business and recognized a $9.2 million gain, net of related expenses. The gain represented the fair value of the Bank’s entire portfolio of payroll services customer contracts, which previously had a zero book basis. In connection with this transaction, the Bank recorded a contingent receivable totaling $2.8 million, which is included in other.

Components of Other Liabilities

The components of other liabilities are as follows:

As of December 31 (in millions)	2015		2014
Fair value of derivative financial instruments (notes 18 and 20)	$	109.5	$	97.0
Liabilities for supplemental retirement plans (note 16)		63.9		60.4
Accrued employee benefits		48.4		42.0
Accrued expenses payable		43.7		55.2
Payables arising from securities brokerage and insurance businesses		34.7		37.6
Other postretirement plan (note 16)		14.0		14.6
Accrued interest payable		13.3		13.7
Liability for unsettled purchases of securities		5.0		91.5
Funded status of defined benefit pension plans (note 16)		—		34.9
Other (1)		49.9		53.7
Total other liabilities	$	382.4	$	500.6

(1) Includes a contingent payable totaling $2.0 million relating to the Kesten-Brown acquisition (see Note 5).

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Deposits (Tables)

12 Months Ended

Dec. 31, 2015

Banking and Thrift [Abstract]

Schedule of Deposits

The following is an analysis of People’s United’s total deposits by product type:

	2015					2014
As of December 31 (dollars in millions)	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Non-interest-bearing	$	6,178.6		—	%	$	5,655.1		—	%
Savings, interest-bearing checking and money market		17,420.7		0.21			15,252.4		0.19
Time deposits maturing:
Within 3 months		991.5		0.69			1,254.3		0.63
After 3 but within 6 months		679.6		0.86			912.5		0.62
After 6 months but within 1 year		1,915.6		1.10			1,306.7		0.79
After 1 but within 2 years		636.1		1.06			1,341.0		1.36
After 2 but within 3 years		153.5		0.98			230.9		1.40
After 3 but within 4 years		101.9		1.46			85.5		1.07
After 4 but within 5 years		339.6		1.81			96.2		1.51
After 5 years		0.3		2.44			3.6		2.45
Total		4,818.1		1.03			5,230.7		0.91
Total deposits	$	28,417.4		0.30	%	$	26,138.2		0.29	%

Schedule of Interest Expense on Deposits

Interest expense on deposits is summarized as follows:

Years ended December 31 (in millions)	2015		2014		2013
Savings, interest-bearing checking and money market	$	43.5	$	36.7	$	33.0
Time		52.0		44.2		48.1
Total	$	95.5	$	80.9	$	81.1

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Borrowings (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Summary of Borrowings

People’s United’s borrowings are summarized as follows:

	2015					2014
As of December 31 (dollars in millions)	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Fixed-rate FHLB advances maturing:
Within 1 month	$	2,750.0		0.44	%	$	1,825.0		0.26	%
After 1 month but within 1 year		450.0		0.57			200.2		0.24
After 2 but within 3 years		258.6		2.71			—		—
After 3 but within 4 years		—		—			261.1		2.71
After 5 years		5.2		1.34			5.4		1.33
Total FHLB advances		3,463.8		0.63			2,291.7		0.54
Customer repurchase agreements maturing:
Within 1 month		469.5		0.19			486.0		0.18
Total customer repurchase agreements		469.5		0.19			486.0		0.18
Federal funds purchased maturing:
Within 1 month		374.0		0.32			913.0		0.15
Total federal funds purchased		374.0		0.32			913.0		0.15
Other borrowings maturing:
Within 1 year		—		—			1.0		1.75
Total other borrowings		—		—			1.0		1.75
Total borrowings	$	4,307.3		0.55	%	$	3,691.7		0.39	%

Interest Expense on Borrowings

Interest expense on borrowings consists of the following:

Years ended December 31 (in millions)	2015		2014		2013
FHLB advances	$	9.8	$	9.2	$	8.2
Customer repurchase agreements		0.9		1.0		1.1
Federal funds purchased		0.8		0.8		1.2
Other borrowings		—		0.1		—
Total	$	11.5	$	11.1	$	10.5

Information Concerning Parent Company Borrowings

Information concerning People’s United’s borrowings is presented below:

As of and for the years ended December 31 (dollars in millions)	2015			2014			2013
FHLB advances:
Balance at year end	$	3,463.8		$	2,291.7		$	3,719.8
Average outstanding during the year		2,306.6			2,593.7			2,043.9
Maximum outstanding at any month end		3,463.8			3,419.5			3,719.8
Average interest rate during the year		0.42	%		0.36	%		0.40	%
Customer repurchase agreements:
Balance at year end	$	469.5		$	486.0		$	501.2
Carrying amount of collateral securities at year end		478.9			495.7			511.2
Average outstanding during the year		463.6			482.0			522.7
Maximum outstanding at any month end		504.5			519.2			581.2
Average interest rate during the year		0.19	%		0.20	%		0.20	%
Federal funds purchased:
Balance at year end	$	374.0		$	913.0		$	825.0
Average outstanding during the year		411.0			471.8			641.2
Maximum outstanding at any month end		582.0			960.0			934.0
Average interest rate during the year		0.19	%		0.17	%		0.19	%
Other borrowings:
Balance at year end	$	—		$	1.0		$	11.0
Carrying amount of collateral securities at year end		—			1.1			1.1
Average outstanding during the year		0.6			57.1			3.9
Maximum outstanding at any month end		1.0			206.2			11.0
Average interest rate during the year		1.76	%		0.25	%		0.51	%

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Notes and Debentures (Tables)

12 Months Ended

Dec. 31, 2015

Brokers and Dealers [Abstract]

Schedule of Subordinated Borrowing

Notes and debentures are summarized as follows:

As of December 31 (in millions)	2015		2014
People’s United Financial, Inc.:
3.65% senior notes due 2022	$	498.8	$	498.6
5.80% fixed rate/floating rate subordinated notes due 2017		123.7		122.5
People’s United Bank:
4.00% subordinated notes due 2024		416.2		412.4
Total notes and debentures	$	1,038.7	$	1,033.5

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Summary of Total Income Tax Expense

The following is a summary of total income tax expense:

Years ended December 31 (in millions)	2015			2014			2013
Income tax expense applicable to pre-tax income	$	130.4		$	128.9		$	115.2
Income tax benefit applicable to items reported in total other comprehensive loss (note 15)		(5.3	)		(6.7	)		(34.6	)
Total	$	125.1		$	122.2		$	80.6

Income Tax Effects Related to Items Recognized in Other Comprehensive Income

The components of income tax expense applicable to pre-tax income are summarized as follows:

Years ended December 31 (in millions)	2015		2014		2013
Current tax expense:
Federal	$	103.6	$	111.9	$	89.9
State		12.7		10.3		9.8
Total current tax expense		116.3		122.2		99.7
Deferred tax expense (1)		14.1		6.7		15.5
Total income tax expense	$	130.4	$	128.9	$	115.2

(1) Includes the effect of decreases in the valuation allowance for state deferred tax assets of $0.1 million, $1.2 million and $2.3 million in 2015, 2014 and 2013, respectively.

Summary of Income Tax Reconciliation

The following is a reconciliation of expected income tax expense, computed at the U.S. federal statutory rate of 35%, to actual income tax expense:

Years ended December 31 (dollars in millions)	2015			2014			2013
Expected income tax expense	$	136.7		$	133.2		$	121.7
State income tax, net of federal tax effect		9.3			8.2			7.3
Tax-exempt interest		(16.4	)		(13.2	)		(11.7	)
Tax-exempt income from BOLI		(1.6	)		(2.0	)		(1.6	)
Federal income tax credits		(0.4	)		0.8			(3.0	)
Other, net		2.8			1.9			2.5
Actual income tax expense	$	130.4		$	128.9		$	115.2
Effective income tax rate		33.4	%		33.9	%		33.1	%

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to People’s United’s deferred tax assets and liabilities are as follows:

As of December 31 (in millions)	2015			2014
Deferred tax assets:
Leasing activities	$	101.5		$	87.1
Allowance for loan losses and non-accrual interest		82.7			77.4
State tax net operating loss carryforwards, net of federal tax effect		68.0			67.2
Equity-based compensation		22.9			22.0
Pension and other postretirement benefits		12.2			35.8
Unrealized loss on securities transferred to held to maturity		12.0			13.1
Unrealized loss on securities available for sale		10.8			2.3
Basis difference in affordable housing investments		—			3.1
Other deductible temporary differences		35.1			32.6
Total deferred tax assets		345.2			340.6
Less: valuation allowance for state deferred tax assets		(68.0	)		(68.1	)
Total deferred tax assets, net of the valuation allowance		277.2			272.5
Deferred tax liabilities:
Tax over book depreciation		(185.4	)		(160.3	)
Acquisition-related deferred tax liabilities		(39.9	)		(51.0	)
Book over tax income recognized on consumer loans		(14.6	)		(12.4	)
Deferred cancellation-of-indebtedness income		(13.4	)		(17.5	)
Mark-to-market and original issue discounts for tax purposes		(7.3	)		(7.7	)
Temporary differences related to merchant services joint venture		(6.8	)		(7.2	)
Other taxable temporary differences		(7.9	)		(9.4	)
Total deferred tax liabilities		(275.3	)		(265.5	)
Net deferred tax asset	$	1.9		$	7.0

Unrecognized Income Tax Benefits

The following is a reconciliation of the beginning and ending balances of People’s United’s unrecognized income tax benefits related to uncertain tax positions:

Years ended December 31 (in millions)	2015			2014			2013
Balance at beginning of year	$	3.0		$	3.0		$	2.9
Additions for tax positions taken in prior years		0.1			0.1			0.1
Reductions for tax positions taken in prior years		—			—			—
Reductions attributable to audit settlements/lapse of statute of limitations		(0.4	)		(0.1	)		—
Balance at end of year	$	2.7		$	3.0		$	3.0

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Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2015

Regulatory Capital Requirements

The following summary compares the Bank’s regulatory capital amounts and ratios to the OCC’s requirements for classification as a well-capitalized institution and for minimum capital adequacy (capital rules in effect through December 31, 2014). At December 31, 2014, the Bank’s adjusted total assets, as defined, were $34.0 billion and its total risk-weighted assets, as defined, were $27.5 billion. At December 31, 2014, the Bank exceeded each of its regulatory capital requirements.

							OCC Requirements
	People’s United Bank						Classification as Well-Capitalized					Minimum Capital Adequacy
(dollars in millions)	Amount			Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2014
Tangible capital	$	2,881.5	(1)		8.5	%		n/a		n/a		$	510.3		1.5	%
Leverage (core) capital		2,881.5	(1)		8.5		$	1,700.9		5.0	%		1,360.8		4.0
Risk-based capital:
Tier 1		2,881.5	(1)		10.5			1,647.3		6.0			1,098.2		4.0
Total		3,582.2	(2)		13.0			2,745.4		10.0			2,196.3		8.0

(1) Represents the Bank’s total equity capital, excluding: (i) after-tax net unrealized gains and losses on certain securities classified as available for sale; (ii) after-tax net unrealized gains and losses on securities transferred to held to maturity; (iii) after-tax net unrealized gains and losses on derivatives accounted for as cash flow hedges; (iv) certain assets not recognized for regulatory capital purposes (principally goodwill and other acquisition-related intangible assets); and (v) the amount recorded in AOCL relating to pension and other postretirement benefits.

(2) Represents Tier 1 capital plus qualifying subordinated notes and debentures, up to certain limits, and the allowance for loan losses up to 1.25% of total risk-weighted assets.

Basel III Capital [Member]

Regulatory Capital Requirements

The following summary compares People’s United’s and the Bank’s regulatory capital amounts and ratios under the Basel III capital rules. The minimum capital required amounts as of December 31, 2015 are based on the phase-in provisions of the Basel III capital rules. In connection with the adoption of the Basel III capital rules, both the Company and the Bank elected to opt-out of the requirement to include most components of AOCL in CET1 capital. At December 31, 2015, People’s United’s and the Bank’s total risk-weighted assets, as defined, both were $29.6 billion.

	As of December 31, 2015					Minimum Capital Required Basel III Phase-In  (2015)					Classification as Well-Capitalized
(dollars in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 Leverage (1):
People’s United		2,898.1		8.0	%	$	1,440.6		4.0	%	$	1,800.8		5.0	%
Bank		3,012.7		8.4			1,431.9		4.0			1,789.8		5.0
Common Equity Tier 1 Capital (2):
People’s United		2,898.1		9.8			1,620.7		4.5			2,341.0		6.5
Bank		3,012.7		10.2			1,610.9		4.5			2,326.8		6.5
Tier 1 Risk-Based Capital (3):
People’s United		2,898.1		9.8			1,778.8		6.0			2,371.7		8.0
Bank		3,012.7		10.2			1,777.3		6.0			2,369.7		8.0
Total Risk-Based Capital (4):
People’s United		3,470.5		11.7			2,371.7		8.0			2,964.6		10.0
Bank		3,726.3		12.6			2,369.7		8.0			2,962.1		10.0

(1) Tier 1 Leverage ratio represents Tier 1 Capital divided by Average Total Assets (less goodwill, other acquisition-related intangibles and other deductions from Common Equity Tier 1 Capital).

(2) Common Equity Tier 1 Capital ratio represents equity capital, as defined, less: (i) after-tax net unrealized gains (losses) on certain securities classified as available for sale; (ii) after-tax net unrealized gains (losses) on securities transferred to held to maturity; (iii) goodwill and other acquisition-related intangible assets; and (iv) the amount recorded in AOCL relating to pension and other postretirement benefits divided by Total Risk-Weighted Assets.

(3) Tier 1 Risk-Based Capital ratio represents Common Equity Tier 1 Capital plus Additional Tier 1 Capital instruments (together, “Tier 1 Capital”) divided by Total Risk-Weighted Assets.

(4) Total Risk-Based Capital ratio represents Tier 1 Capital plus subordinated notes and debentures, up to certain limits, and the allowance for loan losses, up to 1.25% of Total Risk-Weighted Assets, divided by Total Risk-Weighted Assets.

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Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share, Reflecting Application of Two-Class Method

The following is an analysis of People’s United’s basic and diluted EPS, reflecting the application of the two-class method, as described in Note 1:

Years ended December 31 (in millions, except per share data)	2015			2014			2013
Net income	$	260.1		$	251.7		$	232.4
Dividends and undistributed earnings allocated to participating securities		(1.1	)		(1.2	)		(1.2	)
Income attributable to common shareholders	$	259.0		$	250.5		$	231.2
Average common shares outstanding for basic EPS		300.4			298.2			311.9
Effect of dilutive equity-based awards		—			0.1			0.1
Average common and common-equivalent shares for diluted EPS		300.4			298.3			312.0
Basic EPS	$	0.86		$	0.84		$	0.74
Diluted EPS	$	0.86		$	0.84		$	0.74

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Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following is a summary of the changes in the components of AOCL, which are included in People’s United’s stockholders’ equity on an after-tax basis:

(in millions)	Pension and Other Postretirement Plans			Net Unrealized Gains (Losses) on Securities Available for Sale			Net Unrealized Gains (Losses) on Securities Transferred to Held to Maturity			Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges			Total Accumulated Other Comprehensive Loss
Balance at December 31, 2012	$	(148.2	)	$	52.8		$	—		$	(1.5	)	$	(96.9	)
Other comprehensive income (loss) before reclassifications		58.3			(99.3	)		(23.3	)		0.5			(63.8	)
Amounts reclassified from AOCL (1)		4.9			—			—			0.7			5.6
Current period other comprehensive income (loss)		63.2			(99.3	)		(23.3	)		1.2			(58.2	)
Balance at December 31, 2013		(85.0	)		(46.5	)		(23.3	)		(0.3	)		(155.1	)
Other comprehensive income (loss) before reclassifications		(62.6	)		44.6			—			(0.6	)		(18.6	)
Amounts reclassified from AOCL (1)		4.7			(1.8	)		1.8			0.8			5.5
Current period other comprehensive income (loss)		(57.9	)		42.8			1.8			0.2			(13.1	)
Balance at December 31, 2014		(142.9	)		(3.7	)		(21.5	)		(0.1	)		(168.2	)
Other comprehensive income (loss) before reclassifications		(2.2	)		(14.0	)		—			(0.7	)		(16.9	)
Amounts reclassified from AOCL (1)		5.1			—			2.0			0.8			7.9
Current period other comprehensive income (loss)		2.9			(14.0	)		2.0			0.1			(9.0	)
Balance at December 31, 2015	$	(140.0	)	$	(17.7	)	$	(19.5	)	$	—		$	(177.2	)

(1) See the following table for details about these reclassifications.

Summary of Amounts Reclassified from AOCL

The following is a summary of the amounts reclassified from AOCL:

Years ended December 31 (in millions)	Amounts Reclassified from  AOCL									Affected Line Item in the Statement Where Net Income is Presented
	2015			2014			2013
Details about components of AOCL:
Amortization of pension and other postretirement plans items:
Net actuarial loss	$	(9.1	)	$	(8.4	)	$	(8.8	)	(1)
Prior service credit		1.0			1.0			1.1		(1)
		(8.1	)		(7.4	)		(7.7	)	Income before income tax expense
		3.0			2.7			2.8		Income tax expense
		(5.1	)		(4.7	)		(4.9	)	Net income
Reclassification adjustment for net realized gains on securities available for sale		—			3.0			—		Income before income tax expense (2)
		—			(1.2	)		—		Income tax expense
		—			1.8			—		Net income
Amortization of unrealized losses on securities transferred to held to maturity		(3.1	)		(3.0	)		—		Income before income tax expense (3)
		1.1			1.2			—		Income tax expense
		(2.0	)		(1.8	)		—		Net income
Amortization of unrealized gains and losses on cash flow hedges:
Interest rate swaps		(1.3	)		(1.4	)		(1.3	)	(4)
Interest rate locks		0.1			0.1			0.1		(4)
		(1.2	)		(1.3	)		(1.2	)	Income before income tax expense
		0.4			0.5			0.5		Income tax expense
		(0.8	)		(0.8	)		(0.7	)	Net income
Total reclassifications for the period	$	(7.9	)	$	(5.5	)	$	(5.6	)

(1) Included in the computation of net periodic benefit income (expense) reflected in compensation and benefits expense (see Note 16 for additional details).

(2) Included in non-interest income.

(3) Included in interest and dividend income – securities.

(4) Included in interest expense – notes and debentures.

Deferred Income Taxes Applicable to Components of Accumulated Other Comprehensive Loss

Deferred income taxes applicable to the components of AOCL are as follows:

As of December 31 (in millions)	2015		2014		2013
Net actuarial loss and other amounts related to pension and         other postretirement plans	$	81.5	$	83.2	$	50.0
Net unrealized loss on securities available for sale		10.3		2.2		27.3
Net unrealized loss on securities transferred to held to maturity		11.4		12.5		13.7
Net unrealized loss on derivatives accounted for as cash flow hedges		—		—		0.2
Total deferred income taxes	$	103.2	$	97.9	$	91.2

Other Comprehensive Income (Loss)

The following is a summary of the components of People’s United’s total other comprehensive loss:

	Pre-Tax						After-Tax
Year ended December 31, 2015 (in millions)	Amount			Tax Effect			Amount
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial loss arising during the year	$	(3.5	)	$	1.3		$	(2.2	)
Reclassification adjustment for net actuarial loss included in net income		9.1			(3.4	)		5.7
Net actuarial gain		5.6			(2.1	)		3.5
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.0	)		0.4			(0.6	)
Net actuarial gain and prior service credit		4.6			(1.7	)		2.9
Net unrealized gains and losses on securities available for sale:
Net unrealized holding losses arising during the year		(22.1	)		8.1			(14.0	)
Net unrealized losses		(22.1	)		8.1			(14.0	)
Net unrealized gains and losses on securities transferred to held to maturity:
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income		3.1			(1.1	)		2.0
Net unrealized gains		3.1			(1.1	)		2.0
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized losses arising during the year		(1.1	)		0.4			(0.7	)
Reclassification adjustment for net realized losses included in net income		1.2			(0.4	)		0.8
Net unrealized gains		0.1			—			0.1
Total other comprehensive loss	$	(14.3)		$	5.3		$	(9.0	)

	Pre-Tax						After-Tax
Year ended December 31, 2014 (in millions)	Amount			Tax Effect			Amount
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial loss arising during the year	$	(98.5	)	$	35.9		$	(62.6	)
Reclassification adjustment for net actuarial loss included in net income		8.4			(3.1	)		5.3
Net actuarial loss		(90.1	)		32.8			(57.3	)
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.0	)		0.4			(0.6	)
Net actuarial loss and prior service credit		(91.1	)		33.2			(57.9	)
Net unrealized gains and losses on securities available for sale:
Net unrealized holding gains arising during the year		70.9			(26.3	)		44.6
Reclassification adjustment for net realized gains included in net income		(3.0	)		1.2			(1.8	)
Net unrealized gains		67.9			(25.1	)		42.8
Net unrealized gains and losses on securities transferred to held to maturity:
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income		3.0			(1.2	)		1.8
Net unrealized gains		3.0			(1.2	)		1.8
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized losses arising during the year		(0.9	)		0.3			(0.6	)
Reclassification adjustment for net realized losses included in net income		1.3			(0.5	)		0.8
Net unrealized gains		0.4			(0.2	)		0.2
Total other comprehensive loss	$	(19.8	)	$	6.7		$	(13.1	)

	Pre-Tax						After-Tax
Year ended December 31, 2013 (in millions)	Amount			Tax Effect			Amount
Net actuarial gains and losses on pension and other postretirement plans:
Net actuarial gain arising during the year	$	92.0		$	(33.7	)	$	58.3
Reclassification adjustment for net actuarial loss included in net income		8.8			(3.2	)		5.6
Net actuarial gain		100.8			(36.9	)		63.9
Prior service credit on pension and other postretirement plans:
Reclassification adjustment for prior service credit included in net income		(1.1	)		0.4			(0.7	)
Net actuarial gain and prior service credit		99.7			(36.5	)		63.2
Net unrealized gains and losses on securities available for sale:
Net unrealized holding losses arising during the year		(194.4	)		58.1			(136.3	)
Unrealized holding losses on securities transferred during the year		37.0			—			37.0
Net unrealized losses		(157.4	)		58.1			(99.3	)
Net unrealized gains and losses on securities transferred to held to maturity:
Unrealized holding losses on securities transferred during the year		(37.0	)		13.7			(23.3	)
Net unrealized losses		(37.0	)		13.7			(23.3	)
Net unrealized gains and losses on derivatives accounted for as cash flow hedges:
Net unrealized gains arising during the year		0.7			(0.2	)		0.5
Reclassification adjustment for net realized losses included in net income		1.2			(0.5	)		0.7
Net unrealized gains		1.9			(0.7	)		1.2
Total other comprehensive loss	$	(92.8	)	$	34.6		$	(58.2	)

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Changes in Benefit Obligations and Plan Assets

The following table summarizes changes in the benefit obligations and plan assets of the People’s Qualified Plan, the Chittenden Qualified Plan and the Supplemental Plans (together the “Pension Plans”) and the Other Postretirement Plan. The table also shows the funded status (or the difference between benefit obligations and plan assets) recognized in the Consolidated Statements of Condition. All plans have a December 31 measurement date.

	Pension Plans						Other Postretirement Plan
(in millions)	2015			2014			2015			2014
Benefit obligations: (1)
Beginning of year	$	515.3		$	430.5		$	14.6		$	10.3
Service cost		—			—			0.3			0.1
Interest cost		21.1			21.4			0.6			0.5
Actuarial loss (gain)		(36.7	)		88.0			(0.6	)		4.8
Benefits paid		(16.6	)		(15.9	)		(0.9	)		(1.1	)
Settlements		(2.7	)		(8.7	)		—			—
End of year		480.4			515.3			14.0			14.6
Fair value of plan assets:
Beginning of year		439.9			431.4			—			—
Actual return on assets		(6.4	)		26.2			—			—
Employer contributions (2)		52.3			6.9			0.9			1.1
Benefits paid		(16.6	)		(15.9	)		(0.9	)		(1.1	)
Settlements		(2.7	)		(8.7	)		—			—
End of year		466.5			439.9			—			—
Funded status at end of year	$	(13.9	)	$	(75.4	)	$	(14.0	)	$	(14.6	)
Amounts recognized in the Consolidated Statements of Condition:
Other assets	$	26.6		$	—		$	—		$	—
Other liabilities		(40.5	)		(75.4	)		(14.0	)		(14.6	)
Funded status at end of year	$	(13.9	)	$	(75.4	)	$	(14.0	)	$	(14.6	)

(1) Represents projected benefit obligations for the Pension Plans and accumulated benefit obligations for the Other Postretirement Plan.

(2) During the quarter ended March 31, 2015, People’s United made voluntary employer contributions of $40.0 million and $10.0 million to the People’s Qualified Plan and the Chittenden Qualified Plan, respectively.

Accumulated and Projected Benefit Obligations

The following table summarizes the accumulated and projected benefit obligations for the Pension Plans at the respective measurement dates:

	Pension Plans
As of December 31 (in millions)	2015		2014
Accumulated benefit obligations:
Qualified Plans	$	439.9	$	474.8
Supplemental Plans		40.5		40.5
Total	$	480.4	$	515.3
Projected benefit obligations:
Qualified Plans	$	439.9	$	474.8
Supplemental Plans		40.5		40.5
Total	$	480.4	$	515.3

Components of Net Periodic Benefit (Income) Expense and Other Amounts

Components of net periodic benefit (income) expense and other amounts recognized in other comprehensive loss are as follows:

	Pension Plans									Other Postretirement Plan
Years ended December 31 (in millions)	2015			2014			2013			2015			2014			2013
Net periodic benefit (income) expense:
Service cost	$	—		$	—		$	—		$	0.3		$	0.1		$	0.2
Interest cost		21.1			21.4			19.8			0.6			0.5			0.5
Expected return on plan assets		(34.4	)		(32.0	)		(30.2	)		—			—			—
Recognized net actuarial loss		7.7			5.1			7.3			0.3			—			—
Recognized prior service credit		(0.8	)		(0.8	)		(0.8	)		(0.2	)		(0.2	)		(0.2	)
Settlements (1)		1.2			3.3			1.5			—			—			—
Net periodic benefit (income) expense		(5.2	)		(3.0	)		(2.4	)		1.0			0.4			0.5
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Net actuarial (gain) loss		(4.7	)		85.3			(99.5	)		(0.9	)		4.8			(1.3	)
Prior service credit		0.8			0.8			0.9			0.2			0.2			0.2
Total pre-tax changes recognized in other comprehensive loss		(3.9	)		86.1			(98.6	)		(0.7	)		5.0			(1.1	)
Total recognized in net periodic benefit (income) expense and other comprehensive loss	$	(9.2	)	$	83.1		$	(101.0	)	$	0.3		$	5.4		$	(0.6	)

(1) Settlement charges are a result of lump-sum benefit payments in excess of the sum of a plan’s annual interest and service costs. When an employer settles the full amount of its obligation for vested benefits with respect to some of a plan’s participants, the employer is required to recognize in income a pro-rata portion of the aggregate gain or loss recorded in AOCL.

Pre-Tax Amounts in Accumulated Other Comprehensive Loss

The pre-tax amounts in AOCL that have not been recognized as components of net periodic benefit (income) expense are as follows:

	Pension Plans						Other Postretirement Plan
As of December 31 (in millions)	2015			2014			2015		2014
Net actuarial loss	$	219.3		$	224.0		$	4.2	$	5.1
Prior service credit		(2.0	)		(2.8	)		—		(0.2	)
Total pre-tax amounts included in AOCL	$	217.3		$	221.2		$	4.2	$	4.9

Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Expense

The following assumptions were used in determining the benefit obligations and net periodic benefit (income) expense as of and for the periods indicated:

	Qualified Plans									Other Postretirement Plan
	2015			2014			2013			2015			2014			2013
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate:
People’s Qualified Plan		4.64	%		4.20	%		5.10	%		4.60	%		4.20	%		5.10	%
Chittenden Qualified Plan		4.45			4.00			4.90			n/a			n/a			n/a
Rate of compensation increase		n/a			n/a			n/a			n/a			n/a			n/a
Weighted-average assumptions used to determine net periodic benefit (income) expense for the years ended December 31:
Discount rate:
People’s Qualified Plan		4.20	%		5.10	%		4.25	%		4.20	%		5.10	%		4.25	%
Chittenden Qualified Plan		4.00			4.90			4.00			n/a			n/a			n/a
Expected return on plan assets		7.50			8.00			8.00			n/a			n/a			n/a
Rate of compensation increase		n/a			n/a			n/a			n/a			n/a			n/a
Assumed health care cost trend rates at December 31: (1)
Health care cost trend rate assumed for next year		n/a			n/a			n/a			6.80	%		7.05	%		7.25	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		n/a			n/a			n/a			4.50			4.50			4.50
Year that the rate reaches the ultimate trend rate		n/a			n/a			n/a			2027			2027			2027

n/a – not applicable

(1) Changes in the net periodic benefit (income) expense and the related benefit obligation arising as a result of a one-percentage-point increase or decrease in this assumed trend rate would not be significant.

Expected Impact in 2016 of Change in Accounting Estimate for Qualified Plans

The expected impact in 2016 of the change in accounting estimate for the Qualified Plans is as follows:

(dollars in millions)	People’s Qualified Plan			Chittenden Qualified Plan
Discount rates used to measure net periodic benefit income in 2016:
Interest cost		4.03	%		3.70	%
Discount rates that would have been used to measure net periodic benefit income under prior actuarial methodology:
Interest cost		4.64			4.45
Increase in expected net periodic benefit income in 2016 using specific spot rates:
Interest cost	$	2.5		$	0.3

Asset Allocation

All investment decisions are governed by an established policy that contains the following asset allocation guidelines:

	Asset Class
	Policy Target %		Policy Range %
Cash equivalents		5		0-20
Equity securities		65		50-75
Fixed income securities		30		20-50

Fair Value of Assets in Qualified Plans

The following table summarizes the percentages of fair value for the major categories of assets in the Qualified Plans as of the respective measurement dates:

	Plan Assets
	2015						2014
As of December 31	People’s Qualified Plan			Chittenden Qualified Plan			People’s Qualified Plan			Chittenden Qualified Plan
Equity securities		69	%		69	%		72	%		72	%
Cash and fixed income securities		31			31			28			28
Total		100	%		100	%		100	%		100	%

Plan Assets Measured at Fair Value

The following tables present the Qualified Plans’ assets measured at fair value:

	Fair Value Measurements Using
As of December 31, 2015 (in millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	26.3	$	—	$	—	$	26.3
Equity securities:
Corporate		215.3		—		—		215.3
Mutual funds		—		105.8		—		105.8
Fixed income securities:
Corporate		—		81.6		—		81.6
Mutual funds		—		21.8		—		21.8
Municipals		—		10.5		—		10.5
Other		—		5.2		—		5.2
Total	$	241.6	$	224.9	$	—	$	466.5

	Fair Value Measurements Using
As of December 31, 2014 (in millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	8.9	$	—	$	—	$	8.9
Equity securities:
Corporate		244.4		—		—		244.4
Mutual funds		—		71.0		—		71.0
Fixed income securities:
Corporate		—		73.8		—		73.8
Mutual funds		—		25.8		—		25.8
Municipals		—		11.6		—		11.6
Other		—		4.4		—		4.4
Total	$	253.3	$	186.6	$	—	$	439.9

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Stock-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Incentive Plan

The following is a summary of stock option activity under the Incentive Plans and the SOP:

	Shares Subject To Option			Weighted Average Exercise Price		Weighted-Average Remaining Contractual  Term (in years)		Aggregate Intrinsic Value (1) (in millions)
Options outstanding at December 31, 2012		12,156,806		$	15.95
Granted		3,164,607			13.01
Forfeited		(840,292	)		15.54
Exercised		(264,047	)		9.73
Options outstanding at December 31, 2013		14,217,074			15.43
Granted		4,953,624			13.94
Forfeited		(896,003	)		15.13
Exercised		(476,290	)		12.48
Options outstanding at December 31, 2014		17,798,405			15.11
Granted		5,221,992			14.85
Forfeited		(1,290,396	)		16.57
Exercised		(2,052,577	)		13.35
Options outstanding at December 31, 2015		19,677,424		$	15.13		6.1	$	28.6
Options exercisable at December 31, 2015		10,547,093		$	15.83		4.0	$	11.9

(1) Reflects only those stock options with intrinsic value at December 31, 2015.

Options Outstanding and Options Exercisable

Additional information concerning options outstanding and options exercisable at December 31, 2015 is summarized as follows:

	Options Outstanding						Options Exercisable
			Weighted Average
Exercise Price Range	Number		Remaining Life (in years)		Exercise Price		Number		Weighted Average Exercise Price
$11.52 - $13.05		3,036,141		6.7	$	12.84		2,010,763	$	12.83
13.42 - 15.80		11,260,621		7.9		14.50		3,155,668		14.49
16.07 - 17.76		2,251,654		2.4		16.97		2,251,654		16.97
18.10 - 21.63		3,129,008		1.8		18.29		3,129,008		18.29

Restricted Stock Award Incentive Plan

The following is a summary of restricted stock award activity under the Incentive Plans and the RRP:

	Shares			Weighted-Average Grant Date Fair Value
Unvested restricted shares outstanding at December 31, 2012		1,581,421		$	13.48
Granted		617,796			13.15
Forfeited		(44,046	)		12.85
Vested		(621,956	)		14.08
Unvested restricted shares outstanding at December 31, 2013		1,533,215			13.12
Granted		660,617			14.01
Forfeited		(95,700	)		13.53
Vested		(730,600	)		13.22
Unvested restricted shares outstanding at December 31, 2014		1,367,532			13.47
Granted		568,273			14.88
Forfeited		(80,303	)		14.23
Vested		(623,185	)		13.33
Unvested restricted shares outstanding at December 31, 2015		1,232,317		$	14.14

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize People’s United’s financial instruments that are measured at fair value on a recurring basis:

	Fair Value Measurements Using
As of December 31, 2015 (in millions)	Level 1		Level 2		Level 3		Total
Financial assets:
Trading account securities:
U.S. Treasury	$	6.7	$	—	$	—	$	6.7
Securities available for sale:
U.S. Treasury and agency		362.8		—		—		362.8
GSE residential mortgage-backed securities and CMOs		—		4,164.7		—		4,164.7
Equity securities		—		0.2		—		0.2
Other assets:
Exchange-traded funds		29.4		—		—		29.4
Fixed income securities		—		5.1		—		5.1
Mutual funds		2.0		—		—		2.0
Interest rate swaps		—		157.0		—		157.0
Foreign exchange contracts		—		0.6		—		0.6
Forward commitments to sell residential mortgage loans		—		0.6		—		0.6
Total	$	400.9	$	4,328.2	$	—	$	4,729.1
Financial liabilities:
Interest rate swaps	$	—	$	108.5	$	—	$	108.5
Foreign exchange contracts		—		0.2		—		0.2
Interest rate-lock commitments on residential mortgage loans		—		0.8		—		0.8
Total	$	—	$	109.5	$	—	$	109.5

	Fair Value Measurements Using
As of December 31, 2014 (in millions)	Level 1		Level 2		Level 3		Total
Financial assets:
Trading account securities:
U.S. Treasury	$	8.3	$	—	$	—	$	8.3
Securities available for sale:
U.S. Treasury and agency		56.8		—		—		56.8
GSE residential mortgage-backed securities and CMOs		—		3,936.7		—		3,936.7
Equity securities		—		0.2		—		0.2
Other assets:
Exchange-traded funds		30.3		—		—		30.3
Fixed income securities		—		6.0		—		6.0
Mutual funds		0.8		—		—		0.8
Interest rate swaps		—		131.1		—		131.1
Foreign exchange contracts		—		0.8		—		0.8
Forward commitments to sell residential mortgage loans		—		0.5		—		0.5
Total	$	96.2	$	4,075.3	$	—	$	4,171.5
Financial liabilities:
Interest rate swaps	$	—	$	95.8	$	—	$	95.8
Foreign exchange contracts		—		0.5		—		0.5
Interest rate-lock commitments on residential mortgage loans		—		0.7		—		0.7
Total	$	—	$	97.0	$	—	$	97.0

Assets Measured at Fair Value on Non-Recurring Basis

The following tables summarize People’s United’s assets that are measured at fair value on a non-recurring basis:

	Fair Value Measurements Using
As of December 31, 2015 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	34.5	$	—	$	34.5
Impaired loans (2)		—		—		49.1		49.1
REO and repossessed assets (3)		—		—		22.1		22.1
Total	$	—	$	34.5	$	71.2	$	105.7
	Fair Value Measurements Using
As of December 31, 2014 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	34.2	$	—	$	34.2
Impaired loans (2)		—		—		66.5		66.5
REO and repossessed assets (3)		—		—		27.1		27.1
Total	$	—	$	34.2	$	93.6	$	127.8

(1) Consists of residential mortgage loans; no fair value adjustments were recorded for the years ended December 31, 2015 and 2014.

(2) Represents the recorded investment in originated impaired loans with a related allowance for loan losses measured in accordance with applicable accounting guidance. The total consists of $33.0 million of Commercial loans and $16.1 million of Retail loans at December 31, 2015. The provision for loan losses on impaired loans totaled $6.7 million and $10.9 million for the years ended December 31, 2015 and 2014, respectively.

(3) Represents: (i) $7.1 million of residential REO; (ii) $5.5 million of commercial REO; and (iii) $9.5 million of repossessed assets at December 31, 2015. Charge-offs to the allowance for loan losses related to loans that were transferred to REO or repossessed assets totaled $1.8 million and $1.2 million for the years ended December 31, 2015 and 2014, respectively. Write downs and net loss on sale of foreclosed/repossessed assets charged to non-interest expense totaled $2.8 million and $5.1 million for the same periods.

Carrying Amounts and Estimated Fair Values of Financial Instruments

The following tables summarize the carrying amounts, estimated fair values and placement in the fair value hierarchy of People’s United’s financial instruments that are not measured at fair value either on a recurring or non-recurring basis:

			Estimated Fair Value
	Carrying Amount		Measurements Using
As of December 31, 2015 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	334.8	$	334.8	$	—	$	—	$	334.8
Short-term investments		380.5		—		380.5		—		380.5
Securities held to maturity		1,609.6		—		1,661.0		1.5		1,662.5
FHLB and FRB stock		305.4		—		305.4		—		305.4
Total loans, net (1)		28,150.8		—		5,315.3		22,893.7		28,209.0
Financial liabilities:
Time deposits		4,818.1		—		4,836.5		—		4,836.5
Other deposits		23,599.3		—		23,599.3		—		23,599.3
FHLB advances		3,463.8		—		3,468.7		—		3,468.7
Customer repurchase agreements		469.5		—		469.5		—		469.5
Federal funds purchased		374.0		—		374.0		—		374.0
Notes and debentures		1,038.7		—		1,012.9		—		1,012.9

(1) Excludes impaired loans totaling $49.1 million measured at fair value on a non-recurring basis.

			Estimated Fair Value
	Carrying Amount		Measurements Using
As of December 31, 2014 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	345.1	$	345.1	$	—	$	—	$	345.1
Short-term investments		668.6		—		668.6		—		668.6
Securities purchased under agreements to resell		100.0		—		100.0		—		100.0
Securities held to maturity		834.3		—		880.1		1.5		881.6
FHLB stock		175.7		—		175.7		—		175.7
Total loans, net (1)		26,327.2		—		4,798.5		21,508.8		26,307.3
Financial liabilities:
Time deposits		5,230.7		—		5,262.6		—		5,262.6
Other deposits		20,907.5		—		20,907.5		—		20,907.5
FHLB advances		2,291.7		—		2,298.5		—		2,298.5
Federal funds purchased		913.0		—		913.0		—		913.0
Customer repurchase agreements		486.0		—		486.0		—		486.0
Repurchase agreements (2)		1.0		—		1.0		—		1.0
Notes and debentures		1,033.5		—		1,040.8		—		1,040.8

(1) Excludes impaired loans totaling $66.5 million measured at fair value on a non-recurring basis.

(2) Included in other borrowings in the Consolidated Statements of Condition.

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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Investments, All Other Investments [Abstract]

Summary of Contractual or Notional Amounts of Financial Instruments

A summary of the contractual or notional amounts of People’s United’s lending-related and derivative financial instruments follows:

As of December 31 (in millions)	2015		2014
Lending-Related Financial Instruments: (1)
Loan origination commitments and unadvanced lines of credit:
Commercial	$	3,578.0	$	3,337.2
Consumer		2,558.4		2,455.9
Commercial real estate		831.0		880.1
Residential mortgage		93.3		111.8
Letters of credit:
Stand-by		121.5		148.3
Commercial		3.4		3.2
Derivative Financial Instruments: (2)
Interest rate swaps:
For market risk management		500.0		500.0
For commercial customers:
Customer		4,644.8		3,380.2
Institutional counterparties		4,644.8		3,380.2
Risk participation agreements		244.4		150.1
Foreign exchange contracts		56.7		49.6
Forward commitments to sell residential mortgage loans		44.7		35.3
Interest rate-lock commitments on residential mortgage loans		65.4		57.5

(1) The contractual amounts of these financial instruments represent People’s United’s maximum potential exposure to credit loss, assuming (i) the instruments are fully funded at a later date; (ii) the borrower does not meet contractual repayment obligations; and (iii) any collateral or other security proves to be worthless.

(2) The contractual or notional amounts of these financial instruments are substantially greater than People’s United’s maximum potential exposure to credit loss.

Schedule of Notional Amounts and Fair Values of Derivatives Outstanding

The table below provides a summary of the notional amounts and fair values (presented on a gross basis) of derivatives outstanding:

						Fair Values (1)
	Type of Hedge	Notional Amounts				Assets				Liabilities
As of December 31 (in millions)		2015		2014		2015		2014		2015		2014
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	4,644.8	$	3,380.2	$	130.9	$	104.2	$	2.6	$	8.3
Institutional counterparties	N/A		4,644.8		3,380.2		7.2		11.8		105.3		86.5
Risk participation agreements (2)	N/A		244.4		150.1		—		—		—		—
Foreign exchange contracts	N/A		56.7		49.6		0.6		0.8		0.2		0.5
Forward commitments to sell residential mortgage loans	N/A		44.7		35.3		0.6		0.5		—		—
Interest rate-lock commitments on residential mortgage loans	N/A		65.4		57.5		—		—		0.8		0.7
Total							139.3		117.3		108.9		96.0
Derivatives Designated as Hedging Instruments:
Interest rate swaps:
Subordinated notes	Cash flow		125.0		125.0		—		—		0.6		1.0
Subordinated notes	Fair value		375.0		375.0		18.9		15.1		—		—
Total							18.9		15.1		0.6		1.0
Total fair value of derivatives						$	158.2	$	132.4	$	109.5	$	97.0

(1) Assets are recorded in other assets and liabilities are recorded in other liabilities.

(2) Fair value totaled less than $0.1 million at both dates.

Impact of Derivatives on Pre-Tax Income and Accumulated Other Comprehensive Loss

The following table summarizes the impact of People’s United’s derivatives on pre-tax income and AOCL:

		Amount of Pre-Tax Gain (Loss)									Amount of Pre-Tax Gain (Loss)
	Type of Hedge	Recognized in Earnings (1)									Recognized in AOCL
Years ended December 31 (in millions)		2015			2014			2013			2015			2014			2013
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	104.8		$	165.4		$	(54.2	)	$	—		$	—		$	—
Institutional counterparties	N/A		(90.3	)		(156.9	)		64.7			—			—			—
Foreign exchange contracts	N/A		0.2			0.4			0.1			—			—			—
Risk participation agreements	N/A		(0.2	)		0.1			0.2			—			—			—
Forward commitments to sell residential mortgage loans	N/A		0.1			0.4			(2.9	)		—			—			—
Interest rate-lock commitments on residential mortgage loans	N/A		(0.1	)		(0.5	)		3.5			—			—			—
Total			14.5			8.9			11.4			—			—			—
Derivatives Designated as Hedging Instruments:
Interest rate swaps	Cash flow		(1.3	)		(1.4	)		(1.3	)		(1.1	)		(0.9	)		0.7
Interest rate locks	Cash flow		0.1			0.1			0.1			—			—			—
Interest rate swaps	Fair value		9.3			5.2			—			—			—			—
Total			8.1			3.9			(1.2	)		(1.1	)		(0.9	)		0.7
Total		$	22.6		$	12.8		$	10.2		$	(1.1	)	$	(0.9	)	$	0.7

(1) Amounts recognized in earnings are recorded in interest income, interest expense or other non-interest income for derivatives designated as hedging instruments and in other non-interest income for derivatives not designated as hedging instruments.

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Balance Sheet Offsetting (Tables)

12 Months Ended

Dec. 31, 2015

Text Block [Abstract]

Summary of Gross Presentation, Financial Instruments that are Eligible for Offset Not Offset in Consolidated Statement of Condition

The Company’s derivative contracts with commercial customers and customer repurchase agreements are not subject to master netting arrangements and, therefore, have been excluded from the tables below.

	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset
As of December 31, 2015 (in millions)							Financial Instruments			Collateral			Net Amount
Financial assets:
Interest rate swaps:
Counterparty A	$	0.6	$	—	$	0.6	$	(0.6	)	$	—		$	—
Counterparty B		0.7		—		0.7		(0.7	)		—			—
Counterparty C		0.6		—		0.6		(0.6	)		—			—
Counterparty D		0.7		—		0.7		(0.7	)		—			—
Counterparty E		22.6		—		22.6		(22.6	)		—			—
Other counterparties		0.8		—		0.8		(0.7	)		—			0.1
Foreign exchange contracts		0.6		—		0.6		—			—			0.6
Total	$	26.6	$	—	$	26.6	$	(25.9	)	$	—		$	0.7
Financial liabilities:
Interest rate swaps:
Counterparty A	$	8.4	$	—	$	8.4	$	(0.6	)	$	(7.8	)	$	—
Counterparty B		10.4		—		10.4		(0.7	)		(9.7	)		—
Counterparty C		5.1		—		5.1		(0.6	)		(4.5	)		—
Counterparty D		8.9		—		8.9		(0.7	)		(7.3	)		0.9
Counterparty E		69.5		—		69.5		(22.6	)		(46.9	)		—
Other counterparties		3.6		—		3.6		(0.7	)		(2.9	)		—
Foreign exchange contracts		0.2		—		0.2		—			—			0.2
Total	$	106.1	$	—	$	106.1	$	(25.9	)	$	(79.1	)	$	1.1

	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset
As of December 31, 2014 (in millions)							Financial Instruments			Collateral			Net Amount
Financial assets:
Interest rate swaps:
Counterparty A	$	2.7	$	—	$	2.7	$	(2.7	)	$	—		$	—
Counterparty B		1.5		—		1.5		(1.5	)		—			—
Counterparty C		2.5		—		2.5		(2.5	)		—			—
Counterparty D		3.2		—		3.2		(0.4	)		(2.8	)		—
Counterparty E		15.7		—		15.7		(15.7	)		—			—
Other counterparties		1.3		—		1.3		(1.3	)		—			—
Securities purchased under agreements to resell		100.0		—		100.0		—			(100.0	)		—
Foreign exchange contracts		0.8		—		0.8		—			—			0.8
Total	$	127.7	$	—	$	127.7	$	(24.1	)	$	(102.8	)	$	0.8
Financial liabilities:
Interest rate swaps:
Counterparty A	$	11.8	$	—	$	11.8	$	(2.7	)	$	(9.1	)	$	—
Counterparty B		11.8		—		11.8		(1.5	)		(10.3	)		—
Counterparty C		4.5		—		4.5		(2.5	)		(1.9	)		0.1
Counterparty D		0.4		—		0.4		(0.4	)		—			—
Counterparty E		47.8		—		47.8		(15.7	)		(32.1	)		—
Other counterparties		11.2		—		11.2		(1.3	)		(8.9	)		1.0
Repurchase agreements (1)		1.0		—		1.0		—			(1.0	)		—
Foreign exchange contracts		0.5		—		0.5		—			—			0.5
Total	$	89.0	$	—	$	89.0	$	(24.1	)	$	(63.3	)	$	1.6

(1) Included in other borrowings in the Consolidated Statements of Condition.

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Selected Financial Information Business Segments

The following tables provide selected financial information for People’s United’s reportable segments:

Year ended December 31, 2015 (in millions)	Commercial Banking		Retail Banking			Total Reportable Segments		Treasury			Other			Total Consolidated
Net interest income (loss)	$	551.6	$	344.6		$	896.2	$	64.4		$	(28.5	)	$	932.1
Provision for loan losses		47.7		15.2			62.9		—			(29.5	)		33.4
Total non-interest income		162.0		169.7			331.7		11.1			9.6			352.4
Total non-interest expense		313.2		520.2			833.4		6.9			20.3			860.6
Income (loss) before income tax expense (benefit)		352.7		(21.1	)		331.6		68.6			(9.7	)		390.5
Income tax expense (benefit)		117.9		(7.0	)		110.9		22.9			(3.4	)		130.4
Net income (loss)	$	234.8	$	(14.1	)	$	220.7	$	45.7		$	(6.3	)	$	260.1
Average total assets	$	21,465.7	$	8,478.1		$	29,943.8	$	6,405.5		$	544.7		$	36,894.0
Average total liabilities		5,483.2		19,235.8			24,719.0		7,194.4			283.3			32,196.7
Year ended December 31, 2014 (in millions)	Commercial Banking		Retail Banking			Total Reportable Segments		Treasury			Other			Total Consolidated
Net interest income (loss)	$	516.0	$	408.0		$	924.0	$	10.7		$	(22.8	)	$	911.9
Provision for loan losses		47.6		16.8			64.4		—			(23.8	)		40.6
Total non-interest income		141.4		167.4			308.8		12.4			29.6			350.8
Total non-interest expense		275.7		528.0			803.7		6.2			31.6			841.5
Income (loss) before income tax expense (benefit)		334.1		30.6			364.7		16.9			(1.0	)		380.6
Income tax expense (benefit)		113.1		10.3			123.4		5.8			(0.3	)		128.9
Net income (loss)	$	221.0	$	20.3		$	241.3	$	11.1		$	(0.7	)	$	251.7
Average total assets	$	19,338.5	$	8,514.8		$	27,853.3	$	5,266.7		$	632.8		$	33,752.8
Average total liabilities		4,275.1		19,109.2			23,384.3		5,423.0			320.1			29,127.4
Year ended December 31, 2013 (in millions)	Commercial Banking		Retail Banking			Total Reportable Segments		Treasury			Other			Total Consolidated
Net interest income (loss)	$	487.7	$	456.3		$	944.0	$	(46.6	)	$	(8.8	)	$	888.6
Provision for loan losses		47.3		15.0			62.3		—			(18.6	)		43.7
Total non-interest income		143.3		180.9			324.2		7.2			10.3			341.7
Total non-interest expense		247.4		551.2			798.6		(1.4	)		41.8			839.0
Income (loss) before income tax expense (benefit)		336.3		71.0			407.3		(38.0	)		(21.7	)		347.6
Income tax expense (benefit)		111.4		23.6			135.0		(12.6	)		(7.2	)		115.2
Net income (loss)	$	224.9	$	47.4		$	272.3	$	(25.4	)	$	(14.5	)	$	232.4
Average total assets	$	16,979.5	$	8,373.4		$	25,352.9	$	5,021.1		$	634.9		$	31,008.9
Average total liabilities		3,459.7		19,064.4			22,524.1		3,352.3			377.7			26,254.1

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Parent Company Financial Information (Tables) - People's United Financial, Inc. [Member]

12 Months Ended

Dec. 31, 2015

Condensed Statements of Condition

CONDENSED STATEMENTS OF CONDITION

As of December 31 (in millions)	2015		2014
Assets:
Cash at bank subsidiary	$	170.2	$	3.1
Short-term investments		—		1.2
Total cash and cash equivalents		170.2		4.3
Securities available for sale, at fair value		201.4		0.2
Advances to bank subsidiary		100.0		410.0
Investments in subsidiaries:
Bank subsidiary		4,649.2		4,618.3
Non-bank subsidiary		0.8		0.4
Goodwill		197.1		197.1
Other assets		39.3		34.2
Total assets	$	5,358.0	$	5,264.5
Liabilities and Stockholders’ Equity:
Notes and debentures	$	622.5	$	621.1
Other liabilities		3.9		10.3
Stockholders’ equity		4,731.6		4,633.1
Total liabilities and stockholders’ equity	$	5,358.0	$	5,264.5

Condensed Statements of Income

CONDENSED STATEMENTS OF INCOME

Years ended December 31 (in millions)	2015			2014			2013
Revenues:
Interest income:
Advances to bank subsidiary	$	4.4		$	4.4		$	4.1
Securities		1.1			0.4			0.3
Total interest income		5.5			4.8			4.4
Dividend from bank subsidiary		245.0			244.0			232.0
Security gain		—			2.3			—
Other non-interest income		4.2			1.2			2.0
Total revenues		254.7			252.3			238.4
Expenses:
Interest on notes and debentures		22.5			22.4			23.0
Non-interest expense		2.8			6.1			6.8
Total expenses		25.3			28.5			29.8
Income before income tax benefit and subsidiaries undistributed income		229.4			223.8			208.6
Income tax benefit		(5.5	)		(6.6	)		(7.4	)
Income before subsidiaries undistributed income		234.9			230.4			216.0
Subsidiaries undistributed income		25.2			21.3			16.4
Net income	$	260.1		$	251.7		$	232.4

Condensed Statements of Comprehensive Income

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

Years ended December 31 (in millions)	2015			2014			2013
Net income	$	260.1		$	251.7		$	232.4
Other comprehensive loss, net of tax:
Net unrealized losses on securities available for sale		(0.4	)		—			(0.2	)
Net unrealized gains on derivatives accounted for as cash flow hedges		0.2			0.2			1.2
Other comprehensive loss of bank subsidiary		(8.8	)		(13.3	)		(59.2	)
Total other comprehensive loss, net of tax		(9.0	)		(13.1	)		(58.2	)
Total comprehensive income	$	251.1		$	238.6		$	174.2

Condensed Statements of Cash Flows

CONDENSED STATEMENTS OF CASH FLOWS

Years ended December 31 (in millions)	2015			2014			2013
Cash Flows from Operating Activities:
Net income	$	260.1		$	251.7		$	232.4
Adjustments to reconcile net income to net cash provided by operating activities:
Subsidiaries undistributed income		(25.2	)		(21.3	)		(16.4	)
Security gain		—			(2.3	)		—
Net change in other assets and other liabilities		(0.4	)		0.2			(2.4	)
Net cash provided by operating activities		234.5			228.3			213.6
Cash Flows from Investing Activities:
Proceeds from principal repayments and maturities of securities available for sale		1.2			—			—
Proceeds from sale of security available for sale		—			5.0			—
Purchases of securities available for sale		(202.9	)		—			—
Decrease (increase) in advances to bank subsidiary		310.0			(57.0	)		485.0
Net cash provided by (used in) investing activities		108.3			(52.0	)		485.0
Cash Flows from Financing Activities:
Repayment of notes and debentures		—			—			(20.6	)
Cash dividends paid on common stock		(201.2	)		(196.9	)		(204.8	)
Common stock repurchases		(3.2	)		(3.0	)		(461.1	)
Proceeds from stock options exercised, including excess income tax benefits		27.5			6.0			2.4
Net cash used in financing activities		(176.9	)		(193.9	)		(684.1	)
Net increase (decrease) in cash and cash equivalents		165.9			(17.6	)		14.5
Cash and cash equivalents at beginning of year		4.3			21.9			7.4
Cash and cash equivalents at end of year	$	170.2		$	4.3		$	21.9

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Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data

The following table presents People’s United’s quarterly financial data for 2015 and 2014:

	2015												2014
(in millions, except per share data)	First			Second			Third			Fourth			First			Second			Third			Fourth
Interest and dividend income	$	260.3		$	264.5		$	269.9		$	274.2		$	255.4		$	256.7		$	258.9		$	259.6
Interest expense		32.2			34.1			35.1			35.4			28.3			28.5			30.4			31.5
Net interest income		228.1			230.4			234.8			238.8			227.1			228.2			228.5			228.1
Provision for loan losses		9.8			7.7			6.2			9.7			9.5			8.8			12.4			9.9
Net interest income after provision for loan losses		218.3			222.7			228.6			229.1			217.6			219.4			216.1			218.2
Non-interest income		89.0			83.0			87.1			93.3			79.9			100.1			84.0			86.8
Non-interest expense		217.6			211.8			214.2			217.0			216.7			208.3			208.8			207.7
Income before income tax expense		89.7			93.9			101.5			105.4			80.8			111.2			91.3			97.3
Income tax expense		30.5			32.2			33.1			34.6			27.7			38.9			29.7			32.6
Net income	$	59.2		$	61.7		$	68.4		$	70.8		$	53.1		$	72.3		$	61.6		$	64.7
Basic EPS (1)	$	0.20		$	0.20		$	0.23		$	0.23		$	0.18		$	0.24		$	0.21		$	0.22
Diluted EPS (1)		0.20			0.20			0.23			0.23			0.18			0.24			0.21			0.22
Average common shares outstanding:
Basic		299.15			300.09			301.00			301.38			297.69			298.22			298.42			298.63
Diluted		299.15			300.09			301.00			301.38			297.72			298.24			298.44			298.65
Common stock price:
High	$	15.45		$	16.64		$	16.95		$	16.93		$	15.70		$	15.23		$	15.32		$	15.50
Low		13.97			14.92			14.69			15.00			13.73			14.00			14.24			13.61
Dividends paid		49.5			50.5			50.6			50.6			48.6			49.4			49.4			49.5
Dividends per share		0.165			0.1675			0.1675			0.1675			0.1625			0.165			0.165			0.165
Dividend payout ratio		83.7	%		81.8	%		73.9	%		71.5	%		91.5	%		68.4	%		80.2	%		76.5	%

(1) The sum of the quarterly earnings per share amounts for 2014 does not equal the full-year amount due to rounding and/or changes in average share count for the respective periods.

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Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015 USD ($) Rating	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Accruing interest total	$ 0	$ 0	$ 0
Number of days of non accrual status	90 days
Historical portfolio loss experience	12 months
Collateral values/LTV ratios, minimum	70.00%
Borrower credit scores, minimum | Rating	680
Non accrual commercial loans	$ 750,000
Trade Name Intangible [Member]
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible assets, useful life, (in years)	20 years
Core Deposit Intangibles [Member]
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible assets, useful life, (in years)	10 years
Leasehold Improvements [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets, (in years)	10 years
Buildings [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets, (in years)	40 years
Furniture and Fixtures [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets, (in years)	10 years
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Loan agreement	6 months
Historical portfolio loss experience	1 year
Minimum [Member] | Customer Relationships [Member]
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible assets, useful life, (in years)	7 years
Minimum [Member] | Data Processing and Other Equipment [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets, (in years)	3 years
Minimum [Member] | Computer Software [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets, (in years)	3 years
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Historical portfolio loss experience	3 years
Maximum [Member] | Customer Relationships [Member]
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible assets, useful life, (in years)	15 years
Maximum [Member] | Data Processing and Other Equipment [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets, (in years)	5 years
Maximum [Member] | Computer Software [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets, (in years)	5 years

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Cash and Short-Term Investments - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash and Cash Equivalents [Line Items]
Cash at bank subsidiary	$ 86,000,000	$ 87,200,000
Fair value of collateral securities	$ 0	$ 100,400,000
Federal Reserve Bank of New York [Member]
Cash and Cash Equivalents [Line Items]
Federal funds sold and yield	0.50%	0.25%

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Cash and Short-Term Investments - Cash and Short-Term Investments (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Cash and Cash Equivalents [Abstract]
Interest-bearing deposits at the FRB-NY	$ 333.7	$ 626.5
Money market mutual funds	8.0	7.3
Other	38.8	34.8
Total short-term investments	$ 380.5	$ 668.6

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Securities - Available-for-Sale and Held-to-Maturity Securities Gains (Losses) (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investment Holdings [Line Items]
Amortized Cost	$ 4,555.2	$ 4,000.1
Gross Unrealized Gains	22.5	40.0
Gross Unrealized Losses	(50.0)	(46.4)
Fair Value	4,527.7	3,993.7
Held to maturity Securities, Amortized Cost	1,609.6	834.3
Securities held to maturity, Gross Unrealized Gains	55.8	47.4
Securities held to maturity, Gross Unrealized Losses	(2.9)	(0.1)
Total securities held to maturity, Fair Value	1,662.5	881.6
U.S. Treasury and Agency [Member]
Investment Holdings [Line Items]
Amortized Cost	363.7	56.5
Gross Unrealized Gains	0.2	0.3
Gross Unrealized Losses	(1.1)
Fair Value	362.8	56.8
GSE Residential Mortgage-Backed Securities and CMOs [Member]
Investment Holdings [Line Items]
Amortized Cost	4,191.3	3,943.4
Gross Unrealized Gains	22.3	39.7
Gross Unrealized Losses	(48.9)	(46.4)
Fair Value	4,164.7	3,936.7
Held to maturity Securities, Amortized Cost	588.5
Securities held to maturity, Gross Unrealized Losses	(2.8)
Total securities held to maturity, Fair Value	585.7
Debt Securities [Member]
Investment Holdings [Line Items]
Amortized Cost	4,555.0	3,999.9
Gross Unrealized Gains	22.5	40.0
Gross Unrealized Losses	(50.0)	(46.4)
Fair Value	4,527.5	3,993.5
Equity Securities [Member]
Investment Holdings [Line Items]
Amortized Cost	0.2	0.2
Fair Value	0.2	0.2
State and Municipal [Member]
Investment Holdings [Line Items]
Held to maturity Securities, Amortized Cost	1,019.6	832.8	$ 584.5
Securities held to maturity, Gross Unrealized Gains	55.8	47.4
Securities held to maturity, Gross Unrealized Losses	(0.1)	(0.1)
Total securities held to maturity, Fair Value	1,075.3	880.1
Other [Member]
Investment Holdings [Line Items]
Held to maturity Securities, Amortized Cost	1.5	1.5
Total securities held to maturity, Fair Value	$ 1.5	$ 1.5

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Securities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015 USD ($) Securities Security	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Investment [Line Items]
Security available for sale with a fair value pledged with collateral for public deposits	$ 1,640,000,000	$ 1,430,000,000
Number of securities available for sale | Security	103
Number of securities held to maturity | Securities	48
Total number of securities owned | Security	1,328
Percentage of securities available for sale	11.00%
Available for sale of securities gross unrealized losses	$ 50,000,000	46,400,000
Held to maturity securities gross unrealized losses	2,900,000
Impairment losses on securities recognized in earnings	0	0	$ 0
Gains on debt securities		3,000,000
Impairment of investments	0
Dividend income on capital stock	$ 121,500,000	96,800,000	89,700,000
Federal Reserve Bank stock percentage	6.00%
State And Municipal Securities At Fair Value	$ 1,609,600,000	834,300,000
Federal Reserve Bank of New York [Member]
Investment [Line Items]
Dividend income on capital stock	7,100,000
Purchase of Federal Reserve Bank stock	140,100,000
Maximum [Member]
Investment [Line Items]
Net gains and losses on trading account securities	100,000	100,000	100,000
Gains on debt securities			100,000
Investment in Federal Home Loan Bank Stock [Member]
Investment [Line Items]
Dividend income on capital stock	4,600,000	2,800,000	800,000
State and Municipal [Member]
Investment [Line Items]
Held to maturity securities gross unrealized losses	$ 100,000	100,000
Available for sale securities average maturity period	12 years
State And Municipal Securities At Fair Value	$ 1,019,600,000	832,800,000	584,500,000
Unrealized holding losses on securities transferred during the year			$ 37,000,000
GSE Residential Mortgage-Backed Securities and CMOs [Member]
Investment [Line Items]
Available for sale of securities gross unrealized losses	48,900,000	46,400,000
Held to maturity securities gross unrealized losses	$ 2,800,000
Available for sale securities average maturity period	12 years
State And Municipal Securities At Fair Value	$ 588,500,000
FHLB of Boston [Member]
Investment [Line Items]
Acquired shares of capital stock	154,000,000	164,400,000
FHLB of New York [Member]
Investment [Line Items]
Acquired shares of capital stock	$ 11,300,000	$ 11,300,000

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Securities - Summary of Amortized Cost, Fair Value and Fully Taxable Equivalent Yield of Debt Securities Remaining Period to Contractual Maturity (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investment [Line Items]
Available for Sale, Amortized Cost, Within 1 year	$ 31.1
Available for Sale, Amortized Cost, After 1 but within 5 years	332.6
Available for Sale, Amortized Cost, After 5 but within 10 years	860.3
Available for Sale, Amortized Cost, After 10 years	3,331.0
Available for Sale, Amortized Cost, Total	4,555.0
Available for Sale, Fair Value, Within 1 year	31.1
Available for Sale, Fair Value, After 1 but within 5 years	331.7
Available for Sale, Fair Value, After 5 but within 10 years	871.8
Available for Sale, Fair Value, After 10 years	3,292.9
Available for Sale, Fair Value, Total	$ 4,527.5
Available for Sale, FTE Yield, Within 1 year	0.57%
Available for Sale, FTE Yield, After 1 but within 5 years	1.05%
Available for Sale, FTE Yield, After 5 but within 10 years	2.24%
Available for Sale, FTE Yield, After 10 years	1.89%
Available for Sale, FTE Yield, Total	1.88%
Held to Maturity, Amortized Cost, Within 1 year	$ 3.9
Held to Maturity, Amortized Cost, After 1 but within 5 years	23.7
Held to Maturity, Amortized Cost, After 5 but within 10 years	353.0
Held to Maturity, Amortized Cost, After 10 years	1,229.0
Held to maturity Securities, Amortized Cost	1,609.6	$ 834.3
Held to Maturity, Fair Value, Within 1 year	3.9
Held to Maturity, Fair Value, After 1 but within 5 years	24.1
Held to Maturity, Fair Value, After 5 but within 10 years	376.9
Held to Maturity, Fair Value, After 10 years	1,257.6
Held to Maturity, Fair Value, Total	$ 1,662.5	881.6
Held to Maturity, FTE Yield, Within 1 year	4.20%
Held to Maturity, FTE Yield, After 1 but within 5 years	4.80%
Held to Maturity, FTE Yield, After 5 but within 10 years	3.36%
Held to Maturity, FTE Yield, After 10 years	3.44%
Held to Maturity, FTE Yield, Total	3.45%
U.S. Treasury and Agency [Member]
Investment [Line Items]
Available for Sale, Amortized Cost, Within 1 year	$ 31.1
Available for Sale, Amortized Cost, After 1 but within 5 years	332.6
Available for Sale, Amortized Cost, Total	363.7
Available for Sale, Fair Value, Within 1 year	31.1
Available for Sale, Fair Value, After 1 but within 5 years	331.7
Available for Sale, Fair Value, Total	$ 362.8
Available for Sale, FTE Yield, Within 1 year	0.57%
Available for Sale, FTE Yield, After 1 but within 5 years	1.05%
Available for Sale, FTE Yield, Total	1.01%
GSE Residential Mortgage-Backed Securities and CMOs [Member]
Investment [Line Items]
Available for Sale, Amortized Cost, After 5 but within 10 years	$ 860.3
Available for Sale, Amortized Cost, After 10 years	3,331.0
Available for Sale, Amortized Cost, Total	4,191.3
Available for Sale, Fair Value, After 5 but within 10 years	871.8
Available for Sale, Fair Value, After 10 years	3,292.9
Available for Sale, Fair Value, Total	$ 4,164.7
Available for Sale, FTE Yield, After 5 but within 10 years	2.24%
Available for Sale, FTE Yield, After 10 years	1.89%
Available for Sale, FTE Yield, Total	1.96%
Held to Maturity, Amortized Cost, After 10 years	$ 588.5
Held to maturity Securities, Amortized Cost	588.5
Held to Maturity, Fair Value, After 10 years	585.7
Held to Maturity, Fair Value, Total	$ 585.7
Held to Maturity, FTE Yield, After 10 years	2.22%
Held to Maturity, FTE Yield, Total	2.22%
State and Municipal [Member]
Investment [Line Items]
Held to Maturity, Amortized Cost, Within 1 year	$ 3.9
Held to Maturity, Amortized Cost, After 1 but within 5 years	22.2
Held to Maturity, Amortized Cost, After 5 but within 10 years	353.0
Held to Maturity, Amortized Cost, After 10 years	640.5
Held to maturity Securities, Amortized Cost	1,019.6	832.8	$ 584.5
Held to Maturity, Fair Value, Within 1 year	3.9
Held to Maturity, Fair Value, After 1 but within 5 years	22.6
Held to Maturity, Fair Value, After 5 but within 10 years	376.9
Held to Maturity, Fair Value, After 10 years	671.9
Held to Maturity, Fair Value, Total	$ 1,075.3	880.1
Held to Maturity, FTE Yield, Within 1 year	4.20%
Held to Maturity, FTE Yield, After 1 but within 5 years	4.99%
Held to Maturity, FTE Yield, After 5 but within 10 years	3.36%
Held to Maturity, FTE Yield, After 10 years	4.56%
Held to Maturity, FTE Yield, Total	4.16%
Other [Member]
Investment [Line Items]
Held to Maturity, Amortized Cost, After 1 but within 5 years	$ 1.5
Held to maturity Securities, Amortized Cost	1.5	1.5
Held to Maturity, Fair Value, After 1 but within 5 years	1.5
Held to Maturity, Fair Value, Total	$ 1.5	$ 1.5
Held to Maturity, FTE Yield, After 1 but within 5 years	2.10%
Held to Maturity, FTE Yield, Total	2.10%

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Securities - Continuous Unrealized Loss Position on Available-for-Sale and Held-to-Maturities Securities (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value	$ 3,155.1	$ 143.7
Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(24.3)	(0.2)
Continuous Unrealized Loss Position, 12 Months Or Longer, Fair Value	937.6	1,744.2
Continuous Unrealized Loss Position, 12 Months Or Longer, Unrealized Losses	(28.6)	(46.3)
Continuous Unrealized Loss Position, Total, Fair Value	4,092.7	1,887.9
Continuous Unrealized Loss Position, Total, Unrealized Losses	(52.9)	(46.5)
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(2.9)
GSE Residential Mortgage-Backed Securities and CMOs [Member]
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Held To Maturity Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value	585.7
Held To Maturity Securities, Held To Maturity Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(2.8)
Held To Maturity Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Unrealized Losses	0.0
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Fair Value	585.7
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(2.8)
Available for Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value	2,200.8	111.9
Available for Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(20.3)	(0.1)
Available for Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Fair Value	933.9	1,744.2
Available for Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Unrealized Losses	(28.6)	(46.3)
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Fair Value	3,134.7	1,856.1
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(48.9)	(46.4)
U.S. Treasury and Agency [Member]
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Available for Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value	346.3
Available for Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(1.1)
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Fair Value	346.3
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(1.1)
State and Municipal [Member]
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Held To Maturity Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value	22.3	31.8
Held To Maturity Securities, Held To Maturity Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(0.1)	(0.1)
Held To Maturity Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Fair Value	3.7
Held To Maturity Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Unrealized Losses	0.0	0.0
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Fair Value	26.0	31.8
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	$ (0.1)	$ (0.1)

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Securities - Schedule of Gains and Losses from Sales of Debt Securities (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Gain (Loss) on Sale of Securities, Net [Abstract]
Gains	$ 0.3	$ 4.4
Losses	$ (0.3)	(1.4)
Net security gains		$ 3.0

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Loans - Additional Information (Detail) $ in Thousands		12 Months Ended
	Apr. 16, 2010 USD ($)	Dec. 31, 2015 USD ($) Segments Rating	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of segments | Segments		2
Net deferred loan costs		$ 59,800	$ 54,800
Construction loans		630,600	657,500
Interest-only residential mortgage loans		1,100,000	993,300
Stated-income loans		500	1,000
Net gains on sales of residential mortgage loans		5,500	2,900	$ 14,800
Loans held for sale		34,500	34,200
Acquired loans sold, outstanding balance		24,100	10,400	12,400
Acquired loans sold, carrying amount		22,300	10,300	10,200
Net gains (losses) on sales of acquired loan		1,700	(900)	5,700
Recorded investments, non-performing loans		159,400	197,000	216,600
Interest income that would have recognized		14,100	16,100	17,100
Interest Income Recognized		945,600	932,600	912,900
Allowance for loan losses		211,000	198,300	187,800	$ 188,000
Interest Income Recognized		$ 6,100	4,800	4,700
Temporary reduction of interest rate for TDRs, basis points		2.00%
Collateral values/LTV ratios, minimum		70.00%
Borrower credit scores, minimum | Rating		680
Principal and interest payments receivable						$ 7,570,000
Expected cash flows						7,020,000
Loan portfolio fair value						5,360,000
Aggregate loan nonaccretable difference		$ 82,900				550,900
Portfolio accretable yield		296,000	396,300	639,700	890,200
Portfolio outstanding balance		901,900	1,180,000
Portfolio carrying value		796,600	1,050,000
Commercial Real Estate Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Early non-performing loans		16,000	25,600
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Early non-performing loans		15,000	29,500
Equipment Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Early non-performing loans		20,500	20,700
Commercial Real Estate Construction Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Construction loans unadvanced portion		314,100	434,700
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans		102,600	141,400	137,800
Allowance for loan losses		189,700	179,400	168,300	168,000
Interest Income Recognized		4,300	3,100	3,500
Commercial [Member] | Commercial Real Estate Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans		30,200	60,200	70,800
Interest Income Recognized		1,600	1,300	1,000
Commercial [Member] | Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans		44,900	55,800	43,800
Interest Income Recognized		1,800	1,100	1,000
Commercial [Member] | Equipment Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans		27,500	25,400	23,200
Interest Income Recognized		900	700	1,500
Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans		56,800	55,600	78,800
Allowance for loan losses		21,300	18,900	19,500	20,000
Interest Income Recognized		$ 1,800	$ 1,700	1,200
Duration of extension for payment deferral on TDRs, months		9 years
Connecticut [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of total loan portfolio representing loans to customers		27.00%
New York State [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of total loan portfolio representing loans to customers		20.00%
Massachusetts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of total loan portfolio representing loans to customers		17.00%
New England [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of total loan portfolio representing loans to customers		59.00%	61.00%
Outside New England [Member] | Equipment Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of total loan portfolio representing loans to customers		97.00%	97.00%
Texas California Louisiana And New York [Member] | Equipment Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of total loan portfolio representing loans to customers		34.00%
Outside Texas California Louisiana And New York [Member] | Equipment Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of total loan portfolio representing loans to customers		5.00%
Maximum [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Duration of extension for payment deferral on TDRs, months		2 years
Residential Mortgage Construction Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Construction loans		$ 105,700	$ 107,900
Construction loans unadvanced portion		38,600	45,600
At Acquisition [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio accretable yield						$ 1,660,000
Butler Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
FDIC reimbursement for future losses in percentage	80.00%
FDIC loss share reimbursement value maximum	$ 34,000
Bank reimbursement to FDIC for future recoveries of losses reimbursed to bank by FDIC	80.00%
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net gains (losses) on sales of acquired loan		1,700	(900)	5,700
Allowance for loan losses		8,100	10,200
Acquired Loans [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		7,900	9,800	9,800	$ 10,500
Acquired Loans [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		200	400	500
Non-Performing Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Income Recognized		1,600	3,200	2,600
Purchased Credit Impaired Loans [Member] | Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans		27,700	100,600	138,000
Covered by FDIC Loss-Share [Member] | Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans		2,300	3,000	4,500
Troubled Debt Restructurings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment in originated loans classified as TDRs		195,700	181,600
Allowance for loan losses		5,900	7,100
Interest Income Recognized		4,600	3,800	$ 3,500
Foreclosure or Bankruptcy [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Early non-performing loans		$ 21,800	$ 21,800

XML

Loans - Summary of Loans by Loan Portfolio Segment and Class (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	$ 2,203.1	$ 2,200.6
Total Retail Portfolio	7,660.1	7,132.6
Total loans	28,410.9	26,592.0
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	20,750.8	19,459.4
Total loans	20,750.8	19,459.4
Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	7,660.1	7,132.6
Commercial Real Estate Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	10,028.8	9,404.3
Commercial Real Estate Loan [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	10,028.8	9,404.3
Commercial and Industrial [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	7,748.7	7,189.6
Equipment Financing [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	2,973.3	2,865.5
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	10,722.0	10,055.1
Commercial Loans [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	10,722.0	10,055.1
Residential Mortgage Adjustable Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	4,851.2	4,393.8
Residential Mortgage Fixed Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	605.8	538.2
Residential Mortgage Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	5,457.0	4,932.0
Residential Mortgage Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	5,457.0	4,932.0
Home Equity Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	2,153.7	2,143.1
Consumer Loans [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	49.4	57.5
Originated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	2,164.0	2,149.2
Total Retail Portfolio	7,433.4	6,850.7
Total loans	27,614.3	25,541.1
Originated [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	20,180.9	18,690.4
Originated [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Retail Portfolio	7,433.4	18,690.4
Originated [Member] | Commercial Real Estate Loan [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	9,696.9	8,960.3
Originated [Member] | Commercial and Industrial [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	7,526.4	6,891.1
Originated [Member] | Equipment Financing [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	2,957.6	2,839.0
Originated [Member] | Commercial Loans [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	10,484.0	9,730.1
Originated [Member] | Residential Mortgage Adjustable Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	4,733.3	4,254.7
Originated [Member] | Residential Mortgage Fixed Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	536.1	446.8
Originated [Member] | Residential Mortgage Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	5,269.4	4,701.5
Originated [Member] | Home Equity Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	2,115.5	2,092.9
Originated [Member] | Consumer Loans [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	48.5	56.3
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	39.1	51.4
Total Retail Portfolio	226.7	281.9
Total loans	796.6	1,050.9
Acquired Loans [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	569.9	769.0
Acquired Loans [Member] | Commercial Real Estate Loan [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	331.9	444.0
Acquired Loans [Member] | Commercial and Industrial [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	222.3	298.5
Acquired Loans [Member] | Equipment Financing [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	15.7	26.5
Acquired Loans [Member] | Commercial Loans [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Portfolio	238.0	325.0
Acquired Loans [Member] | Residential Mortgage Adjustable Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	117.9	139.1
Acquired Loans [Member] | Residential Mortgage Fixed Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	69.7	91.4
Acquired Loans [Member] | Residential Mortgage Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total residential mortgage	187.6	230.5
Acquired Loans [Member] | Home Equity Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	38.2	50.2
Acquired Loans [Member] | Consumer Loans [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	$ 0.9	$ 1.2

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Loans - Summary, by Loan Portfolio Segment, of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period				$ 198.3				$ 187.8	$ 198.3	$ 187.8	$ 188.0
Charge-offs									(28.0)	(36.1)	(50.1)
Recoveries									7.3	6.0	6.2
Net loan charge-offs									(20.7)	(30.1)	(43.9)
Provision for loan losses	$ 9.7	$ 6.2	$ 7.7	9.8	$ 9.9	$ 12.4	$ 8.8	9.5	33.4	40.6	43.7
Balance at end of period	211.0				198.3				211.0	198.3	187.8
Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period				10.2					10.2
Balance at end of period	8.1				10.2				8.1	10.2
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period				179.4				168.3	179.4	168.3	168.0
Charge-offs									(20.1)	(24.9)	(33.8)
Recoveries									4.9	3.6	3.7
Net loan charge-offs									(15.2)	(21.3)	(30.1)
Provision for loan losses									25.5	32.4	30.4
Balance at end of period	189.7				179.4				189.7	179.4	168.3
Commercial [Member] | Originated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period				169.6				158.5	169.6	158.5	157.5
Charge-offs									(20.1)	(22.3)	(29.7)
Recoveries									4.9	3.6	3.7
Net loan charge-offs									(15.2)	(18.7)	(26.0)
Provision for loan losses									27.4	29.8	27.0
Balance at end of period	181.8				169.6				181.8	169.6	158.5
Commercial [Member] | Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period				9.8				9.8	9.8	9.8	10.5
Charge-offs										(2.6)	(4.1)
Net loan charge-offs										(2.6)	(4.1)
Provision for loan losses									(1.9)	2.6	3.4
Balance at end of period	7.9				9.8				7.9	9.8	9.8
Retail Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period				18.9				19.5	18.9	19.5	20.0
Charge-offs									(7.9)	(11.2)	(16.3)
Recoveries									2.4	2.4	2.5
Net loan charge-offs									(5.5)	(8.8)	(13.8)
Provision for loan losses									7.9	8.2	13.3
Balance at end of period	21.3				18.9				21.3	18.9	19.5
Retail Loans [Member] | Originated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period				18.5				19.0	18.5	19.0	20.0
Charge-offs									(7.9)	(11.1)	(16.0)
Recoveries									2.4	2.4	2.5
Net loan charge-offs									(5.5)	(8.7)	(13.5)
Provision for loan losses									8.1	8.2	12.5
Balance at end of period	21.1				18.5				21.1	18.5	19.0
Retail Loans [Member] | Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period				$ 0.4				$ 0.5	0.4	0.5
Charge-offs										(0.1)	(0.3)
Net loan charge-offs										(0.1)	(0.3)
Provision for loan losses									(0.2)		0.8
Balance at end of period	$ 0.2				$ 0.4				$ 0.2	$ 0.4	$ 0.5

XML

Loans - Summary of Allowance for Loan Losses by Loan Portfolio Segment and Impairment Methodology (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Originated Loans Individually Evaluated for Impairment, Portfolio	$ 252.1	$ 269.5
Originated Loans Individually Evaluated for Impairment, Allowance	9.4	11.5
Originated Loans Collectively Evaluated for Impairment, Portfolio	27,362.2	25,271.6
Originated Loans Collectively Evaluated for Impairment, Allowance	193.5	176.6
Loans, Portfolio	28,410.9	26,592.0
Total Allowance	211.0	198.3	$ 187.8	$ 188.0
Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, Portfolio	796.6	1,050.9
Total Allowance	8.1	10.2
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Originated Loans Individually Evaluated for Impairment, Portfolio	155.1	174.5
Originated Loans Individually Evaluated for Impairment, Allowance	5.5	7.6
Originated Loans Collectively Evaluated for Impairment, Portfolio	20,025.8	18,515.9
Originated Loans Collectively Evaluated for Impairment, Allowance	176.3	162.0
Loans, Portfolio	20,750.8	19,459.4
Total Allowance	189.7	179.4	168.3	168.0
Commercial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, Portfolio	569.9	769.0
Total Allowance	7.9	9.8
Retail Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Originated Loans Individually Evaluated for Impairment, Portfolio	97.0	95.0
Originated Loans Individually Evaluated for Impairment, Allowance	3.9	3.9
Originated Loans Collectively Evaluated for Impairment, Portfolio	7,336.4	6,755.7
Originated Loans Collectively Evaluated for Impairment, Allowance	17.2	14.6
Loans, Portfolio	7,660.1	7,132.6
Total Allowance	21.3	18.9	$ 19.5	$ 20.0
Retail Loans [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, Portfolio	226.7	281.9
Total Allowance	$ 0.2	$ 0.4

XML

Loans - Summarized Recorded Investments, by Class of Loan, of Originated Non-Performing Loans (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	$ 159.4	$ 197.0	$ 216.6
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	102.6	141.4	137.8
Retail Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	56.8	55.6	78.8
Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	44.9	55.8	43.8
Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	30.2	60.2	70.8
Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	27.5	25.4	23.2
Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	37.2	37.6	58.9
Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	19.5	17.9	19.8
Consumer Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	$ 0.1	$ 0.1	$ 0.1

XML

Loans - Summarized Recorded Investments, by Class of Loan, of Originated Non-Performing Loans (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Government guarantees	$ 16.9	$ 17.6	$ 19.4
Recorded investments, non-performing loans	$ 159.4	197.0	216.6
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Guarantee rate	99.00%
Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Guarantee rate	1.00%
Foreclosure [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	$ 19.9	$ 18.9	$ 28.7

XML

Loans - Summary of Recorded Investments in TDRs by Class of Loan (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) Contracts	Dec. 31, 2014 USD ($) Contracts
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	299	368
Pre-Modification Outstanding Recorded Investment	$ 153.9	$ 138.9
Post-Modification Outstanding Recorded Investment	$ 153.9	$ 138.9
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	135	103
Pre-Modification Outstanding Recorded Investment	$ 124.3	$ 86.4
Post-Modification Outstanding Recorded Investment	$ 124.3	$ 86.4
Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	164	265
Pre-Modification Outstanding Recorded Investment	$ 29.6	$ 52.5
Post-Modification Outstanding Recorded Investment	$ 29.6	$ 52.5
Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	26	25
Pre-Modification Outstanding Recorded Investment	$ 15.2	$ 36.2
Post-Modification Outstanding Recorded Investment	$ 15.2	$ 36.2
Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	61	50
Pre-Modification Outstanding Recorded Investment	$ 80.6	$ 43.1
Post-Modification Outstanding Recorded Investment	$ 80.6	$ 43.1
Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	48	28
Pre-Modification Outstanding Recorded Investment	$ 28.5	$ 7.1
Post-Modification Outstanding Recorded Investment	$ 28.5	$ 7.1
Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	66	130
Pre-Modification Outstanding Recorded Investment	$ 20.1	$ 40.3
Post-Modification Outstanding Recorded Investment	$ 20.1	$ 40.3
Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	98	135
Pre-Modification Outstanding Recorded Investment	$ 9.5	$ 12.2
Post-Modification Outstanding Recorded Investment	$ 9.5	$ 12.2

XML

Loans - Summary of Recorded Investments in TDRs by Class of Loan (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) Contracts	Dec. 31, 2014 USD ($) Contracts
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	299	368
Recorded investment | $	$ 153.9	$ 138.9
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	135	103
Recorded investment | $	$ 124.3	$ 86.4
Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	164	265
Recorded investment | $	$ 29.6	$ 52.5
Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	26	25
Recorded investment | $	$ 15.2	$ 36.2
Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	61	50
Recorded investment | $	$ 80.6	$ 43.1
Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	48	28
Recorded investment | $	$ 28.5	$ 7.1
Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	66	130
Recorded investment | $	$ 20.1	$ 40.3
Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	98	135
Recorded investment | $	$ 9.5	$ 12.2
Extended Maturity [Member] | Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	21	16
Recorded investment | $	$ 8.9	$ 13.5
Extended Maturity [Member] | Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	35	20
Recorded investment | $	$ 41.1	$ 15.3
Extended Maturity [Member] | Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	1
Recorded investment | $	$ 0.1
Extended Maturity [Member] | Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts		1
Recorded investment | $		$ 0.6
Payment Deferral [Member] | Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	2	4
Recorded investment | $	$ 1.2	$ 1.8
Payment Deferral [Member] | Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	20	8
Recorded investment | $	$ 35.9	$ 2.4
Payment Deferral [Member] | Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	38	11
Recorded investment | $	$ 21.5	$ 2.0
Payment Deferral [Member] | Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	13	32
Recorded investment | $	$ 4.7	$ 10.0
Payment Deferral [Member] | Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	7	20
Recorded investment | $	$ 0.8	$ 2.3
Combination of Concessions [Member] | Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	3	4
Recorded investment | $	$ 5.1	$ 2.7
Combination of Concessions [Member] | Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	6	22
Recorded investment | $	$ 3.6	$ 25.4
Combination of Concessions [Member] | Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	9	17
Recorded investment | $	$ 6.9	$ 5.1
Combination of Concessions [Member] | Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	27	68
Recorded investment | $	$ 9.2	$ 24.7
Combination of Concessions [Member] | Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	29	46
Recorded investment | $	$ 3.0	$ 3.7
Bankruptcy [Member] | Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	24	29
Recorded investment | $	$ 5.9	$ 5.0
Bankruptcy [Member] | Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	61	67
Recorded investment | $	$ 5.2	$ 5.6
Contractual Interest Rate Reduction [Member] | Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts		1
Recorded investment | $		$ 18.2
Contractual Interest Rate Reduction [Member] | Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	2
Recorded investment | $	$ 0.3
Contractual Interest Rate Reduction [Member] | Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	1	2
Recorded investment | $	$ 0.5	$ 0.6

XML

Loans - Summary of Recorded Investments in TDRs by Class of Loan, Subsequently Defaulted (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) Contracts	Dec. 31, 2014 USD ($) Contracts
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	51	80
Recorded Investment | $	$ 13.3	$ 15.1
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	18	14
Recorded Investment | $	$ 8.9	$ 5.7
Commercial [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	5	6
Recorded Investment | $	$ 3.2	$ 3.8
Commercial [Member] | Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	4	4
Recorded Investment | $	$ 1.2	$ 1.1
Commercial [Member] | Equipment Financing [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	9	4
Recorded Investment | $	$ 4.5	$ 0.8
Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	33	66
Recorded Investment | $	$ 4.4	$ 9.4
Retail Loans [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	17	42
Recorded Investment | $	$ 2.6	$ 7.8
Retail Loans [Member] | Home Equity Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	16	24
Recorded Investment | $	$ 1.8	$ 1.6

XML

Loans - Summary of Individually-Evaluated Impaired Loans by Class of Loan (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	$ 222.8	$ 225.7
With no related allowance for loan losses, Recorded Investment	203.0	203.0
With a related allowance for loan losses, Unpaid Principal Balance	58.2	95.3
With a related allowance for loan losses, Recorded Investment	49.1	66.5
Unpaid Principal Balance	281.0	321.0
Recorded Investment	252.1	269.5
Related Allowance for Loan Losses	9.4	11.5
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	174.1	216.1
Recorded Investment	155.1	174.5
Related Allowance for Loan Losses	5.5	7.6
Commercial [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	46.5	57.1
With no related allowance for loan losses, Recorded Investment	45.3	55.8
With a related allowance for loan losses, Unpaid Principal Balance	18.8	52.1
With a related allowance for loan losses, Recorded Investment	14.7	27.8
Unpaid Principal Balance	65.3	109.2
Recorded Investment	60.0	83.6
Related Allowance for Loan Losses	1.9	4.0
Commercial [Member] | Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	53.2	51.7
With no related allowance for loan losses, Recorded Investment	50.8	48.6
With a related allowance for loan losses, Unpaid Principal Balance	19.2	21.4
With a related allowance for loan losses, Recorded Investment	14.7	17.4
Unpaid Principal Balance	72.4	73.1
Recorded Investment	65.5	66.0
Related Allowance for Loan Losses	3.3	3.5
Commercial [Member] | Equipment Financing [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	32.6	30.2
With no related allowance for loan losses, Recorded Investment	26.0	21.4
With a related allowance for loan losses, Unpaid Principal Balance	3.8	3.6
With a related allowance for loan losses, Recorded Investment	3.6	3.5
Unpaid Principal Balance	36.4	33.8
Recorded Investment	29.6	24.9
Related Allowance for Loan Losses	0.3	0.1
Retail Loans [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance for loan losses, Recorded Investment	16.1
Unpaid Principal Balance	106.9	104.9
Recorded Investment	97.0	95.0
Related Allowance for Loan Losses	3.9	3.9
Retail Loans [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	67.2	65.4
With no related allowance for loan losses, Recorded Investment	60.4	58.9
With a related allowance for loan losses, Unpaid Principal Balance	14.1	15.6
With a related allowance for loan losses, Recorded Investment	14.0	15.3
Unpaid Principal Balance	81.3	81.0
Recorded Investment	74.4	74.2
Related Allowance for Loan Losses	2.9	2.6
Retail Loans [Member] | Home Equity Loan [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	23.3	21.3
With no related allowance for loan losses, Recorded Investment	20.5	18.3
With a related allowance for loan losses, Unpaid Principal Balance	2.3	2.6
With a related allowance for loan losses, Recorded Investment	2.1	2.5
Unpaid Principal Balance	25.6	23.9
Recorded Investment	22.6	20.8
Related Allowance for Loan Losses	$ 1.0	$ 1.3

XML

Loans - Schedule of Impaired Financing Receivable (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 261.6	$ 241.4	$ 243.7
Interest Income Recognized	6.1	4.8	4.7
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	165.2	151.6	174.7
Interest Income Recognized	4.3	3.1	3.5
Commercial [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	65.6	76.6	84.1
Interest Income Recognized	1.6	1.3	1.0
Commercial [Member] | Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	71.6	46.4	58.5
Interest Income Recognized	1.8	1.1	1.0
Commercial [Member] | Equipment Financing [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	28.0	28.6	32.1
Interest Income Recognized	0.9	0.7	1.5
Retail Loans [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	96.4	89.8	69.0
Interest Income Recognized	1.8	1.7	1.2
Retail Loans [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	75.2	71.8	55.0
Interest Income Recognized	1.5	1.5	1.1
Retail Loans [Member] | Home Equity Loan [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	21.2	18.0	14.0
Interest Income Recognized	$ 0.3	$ 0.2	$ 0.1

XML

Loans - Summary of Aging Information by Class of Loan (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Consumer	$ 2,203.1	$ 2,200.6
Total Retail Portfolio	7,660.1	7,132.6
Total loans	28,410.9	26,592.0
Residential Mortgage Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Other	5,457.0	4,932.0
Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Commercial	10,028.8	9,404.3
Originated [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	27,380.9	25,298.6
Total Past Due	233.4	242.5
Total Consumer	2,164.0	2,149.2
Total Retail Portfolio	7,433.4	6,850.7
Total loans	27,614.3	25,541.1
Originated [Member] | 30-89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	130.4	125.5
Originated [Member] | 90 Days or More [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	103.0	117.0
Retail Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	7,660.1	7,132.6
Retail Loans [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Consumer	49.4	57.5
Retail Loans [Member] | Home Equity Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Consumer	2,153.7	2,143.1
Retail Loans [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Other	5,457.0	4,932.0
Retail Loans [Member] | Originated [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	7,360.0	18,516.2
Total Past Due	73.4	174.2
Total Retail Portfolio	7,433.4	18,690.4
Retail Loans [Member] | Originated [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	48.2	55.8
Total Past Due	0.3	0.5
Total Consumer	48.5	56.3
Retail Loans [Member] | Originated [Member] | Home Equity Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,098.9	2,079.3
Total Past Due	16.6	13.6
Total Consumer	2,115.5	2,092.9
Retail Loans [Member] | Originated [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	5,212.9	4,647.3
Total Past Due	56.5	54.2
Total Other	5,269.4	4,701.5
Retail Loans [Member] | Originated [Member] | 30-89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	38.4	91.0
Retail Loans [Member] | Originated [Member] | 30-89 Days [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0.2	0.4
Retail Loans [Member] | Originated [Member] | 30-89 Days [Member] | Home Equity Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	7.1	5.0
Retail Loans [Member] | Originated [Member] | 30-89 Days [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	31.1	29.1
Retail Loans [Member] | Originated [Member] | 90 Days or More [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	35.0	83.2
Retail Loans [Member] | Originated [Member] | 90 Days or More [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0.1	0.1
Retail Loans [Member] | Originated [Member] | 90 Days or More [Member] | Home Equity Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9.5	8.6
Retail Loans [Member] | Originated [Member] | 90 Days or More [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	25.4	25.1
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Commercial	20,750.8	19,459.4
Total loans	20,750.8	19,459.4
Commercial [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Commercial	10,028.8	9,404.3
Commercial [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Commercial	7,748.7	7,189.6
Commercial [Member] | Equipment Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Commercial	2,973.3	2,865.5
Commercial [Member] | Originated [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	20,020.9	18,516.2
Total Past Due	160.0	174.2
Total Commercial	20,180.9	18,690.4
Commercial [Member] | Originated [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	9,667.7	8,908.0
Total Past Due	29.2	52.3
Total Commercial	9,696.9	8,960.3
Commercial [Member] | Originated [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	7,466.5	6,814.9
Total Past Due	59.9	76.2
Total Commercial	7,526.4	6,891.1
Commercial [Member] | Originated [Member] | Equipment Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,886.7	2,793.3
Total Past Due	70.9	45.7
Total Commercial	2,957.6	2,839.0
Commercial [Member] | Originated [Member] | 30-89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	92.0	91.0
Commercial [Member] | Originated [Member] | 30-89 Days [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	15.0	17.6
Commercial [Member] | Originated [Member] | 30-89 Days [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	13.1	32.4
Commercial [Member] | Originated [Member] | 30-89 Days [Member] | Equipment Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	63.9	41.0
Commercial [Member] | Originated [Member] | 90 Days or More [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	68.0	83.2
Commercial [Member] | Originated [Member] | 90 Days or More [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	14.2	34.7
Commercial [Member] | Originated [Member] | 90 Days or More [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	46.8	43.8
Commercial [Member] | Originated [Member] | 90 Days or More [Member] | Equipment Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 7.0	$ 4.7

XML

Loans - Summary of Credit Quality Indicators by Class of Loan (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	$ 2,203.1	$ 2,200.6
Financing Receivable	7,660.1	7,132.6
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	20,750.8	19,459.4
Originated Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	7,433.4	6,850.7
Originated Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	3,564.3	3,241.6
Originated Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,867.7	2,527.0
Originated Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	1,001.4	1,082.1
Originated Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	20,180.9	18,690.4
Originated Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	19,142.0	17,689.5
Originated Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	370.7	307.2
Originated Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	666.7	679.8
Originated Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	1.5	13.9
Acquired Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	39.1	51.4
Financing Receivable	226.7	281.9
Acquired Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	97.7	107.0
Acquired Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	36.2	50.5
Acquired Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	92.8	124.4
Acquired Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	569.9	769.0
Acquired Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	442.9	484.6
Acquired Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	31.7	74.4
Acquired Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	93.5	186.7
Acquired Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	1.8	23.3
Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	10,028.8	9,404.3
Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	10,028.8	9,404.3
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	9,696.9	8,960.3
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	9,438.6	8,730.9
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	130.6	82.4
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	127.7	135.3
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable		11.7
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	331.9	444.0
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	260.9	302.5
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	20.1	20.9
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	49.1	113.5
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	1.8	7.1
Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	7,748.7	7,189.6
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	7,526.4	6,891.1
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	7,153.4	6,477.4
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	121.0	114.2
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	250.5	297.3
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	1.5	2.2
Commercial and Industrial [Member] | Acquired Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	222.3	298.5
Commercial and Industrial [Member] | Acquired Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	175.9	174.5
Commercial and Industrial [Member] | Acquired Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	6.6	52.8
Commercial and Industrial [Member] | Acquired Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	39.8	55.0
Commercial and Industrial [Member] | Acquired Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable		16.2
Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,973.3	2,865.5
Equipment Financing [Member] | Originated Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,957.6	2,839.0
Equipment Financing [Member] | Originated Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,550.0	2,481.2
Equipment Financing [Member] | Originated Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	119.1	110.6
Equipment Financing [Member] | Originated Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	288.5	247.2
Equipment Financing [Member] | Acquired Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	15.7	26.5
Equipment Financing [Member] | Acquired Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	6.1	7.6
Equipment Financing [Member] | Acquired Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	5.0	0.7
Equipment Financing [Member] | Acquired Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	4.6	18.2
Residential Mortgage Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	5,457.0	4,932.0
Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	5,457.0	4,932.0
Residential Mortgage Loan [Member] | Originated Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	5,269.4	4,701.5
Residential Mortgage Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,579.3	2,280.6
Residential Mortgage Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,208.6	1,921.6
Residential Mortgage Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	481.5	499.3
Residential Mortgage Loan [Member] | Acquired Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	187.6	230.5
Residential Mortgage Loan [Member] | Acquired Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	97.7	107.0
Residential Mortgage Loan [Member] | Acquired Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	36.2	50.5
Residential Mortgage Loan [Member] | Acquired Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	53.7	73.0
Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,153.7	2,143.1
Home Equity Loan [Member] | Originated Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,115.5	2,092.9
Home Equity Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	959.2	931.5
Home Equity Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	651.2	597.1
Home Equity Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	505.1	564.3
Home Equity Loan [Member] | Acquired Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	38.2	50.2
Home Equity Loan [Member] | Acquired Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	38.2	50.2
Consumer Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	49.4	57.5
Consumer Loans [Member] | Originated Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	48.5	56.3
Consumer Loans [Member] | Originated Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	25.8	29.5
Consumer Loans [Member] | Originated Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	7.9	8.3
Consumer Loans [Member] | Originated Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	14.8	18.5
Consumer Loans [Member] | Acquired Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	0.9	1.2
Consumer Loans [Member] | Acquired Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	$ 0.9	$ 1.2

XML

Loans - Summarized Activity in Accretable Yield for Acquired Loan Portfolio (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Balance at beginning of period	$ 396.3	$ 639.7	$ 890.2
Accretion	(55.5)	(81.0)	(127.1)
Reclassification from nonaccretable difference for loans with improved cash flows	1.1	6.7	5.3
Other changes in expected cash flows	(45.9)	(169.1)	(128.7)
Balance at end of period	$ 296.0	$ 396.3	$ 639.7

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Goodwill and Other Acquisition-Related Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Goodwill [Line Items]
Beginning balance	$ 1,954.5
Acquisition of insurance brokerage firm	4.2
Ending balance	1,958.7
Commercial Banking Loan [Member]
Goodwill [Line Items]
Beginning balance	1,222.8
Ending balance	1,222.8
Retail Banking [Member]
Goodwill [Line Items]
Beginning balance	681.9
Ending balance	681.9
Wealth Management [Member]
Goodwill [Line Items]
Beginning balance	49.8
Acquisition of insurance brokerage firm	4.2
Ending balance	$ 54.0

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Goodwill and Other Acquisition-Related Intangible Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Oct. 31, 2015
Goodwill And Other Intangible Assets [Line Items]
Goodwill	$ 1,958,700,000	$ 1,954,500,000
Other acquisition-related intangible assets	129,100,000	148,000,000
Other acquisition-related intangible assets	1,900,000	7,000,000
Tax deductible goodwill amount	24,100,000	13,000,000
Amortization of other acquisition-related intangible assets	23,900,000	24,800,000	$ 26,200,000
Amortization expense attributable to other acquisition-related intangible assets, 2016	23,200,000
Amortization expense attributable to other acquisition-related intangible assets, 2017	22,100,000
Amortization expense attributable to other acquisition-related intangible assets, 2018	10,700,000
Amortization expense attributable to other acquisition-related intangible assets, 2019	9,900,000
Amortization expense attributable to other acquisition-related intangible assets, 2020	9,500,000
Impairment losses relating to goodwill or other acquisition-related intangible assets	$ 0	$ 0	$ 0
Weighted-average amortization period, Years	0 years
Kesten Brown [Member]
Goodwill And Other Intangible Assets [Line Items]
Goodwill				$ 4,200,000
Other acquisition-related intangible assets				2,900,000
Insurance Relationships [Member] | Kesten Brown [Member]
Goodwill And Other Intangible Assets [Line Items]
Other acquisition-related intangible assets				$ 5,000,000

XML

Goodwill and Other Acquisition-Related Intangible Assets - Other Acquisition-Related Intangibles (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 345.7	$ 340.7
Accumulated Amortization	216.6	192.7
Carrying Amount	129.1	148.0
Trade Name Intangible [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Amount	122.7	122.7
Accumulated Amortization	42.8	34.9
Carrying Amount	79.9	87.8
Core Deposit Intangibles [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Amount	143.8	143.8
Accumulated Amortization	120.0	107.3
Carrying Amount	23.8	36.5
Trust Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Amount	42.7	42.7
Accumulated Amortization	22.8	20.0
Carrying Amount	19.9	22.7
Insurance Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Amount	36.5	31.5
Accumulated Amortization	31.0	30.5
Carrying Amount	$ 5.5	$ 1.0

XML

Premises and Equipment - Components of Premises and Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Land	$ 38.8	$ 39.5
Buildings	267.6	269.2
Leasehold improvements	158.2	161.6
Furniture and equipment	225.3	219.0
Total	689.9	689.3
Less: Accumulated depreciation and amortization	432.1	411.5
Total premises and equipment, net	$ 257.8	$ 277.8

XML

Premises and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense included in occupancy and equipment expense	$ 39.3	$ 39.6	$ 40.3

XML

Other Assets and Other Liabilities - Components of Other Assets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Other Assets [Line Items]
Leased equipment	$ 194.4	$ 180.9
Fair value of derivative financial instruments (notes 18 and 20)	158.2	132.4
Accrued interest receivable	90.6	82.6
Affordable housing investments (note 11)	83.5	69.6
Assets held in trust for supplemental retirement plans (note 16)	36.5	37.1
Receivables arising from securities brokerage and insurance businesses	33.7	34.8
Funded status of defined benefit pension plans (note 16)	26.6	(34.9)
Current income tax receivable (note 11)	26.3	21.1
Investment in joint venture	22.0	21.3
Economic development investments	19.8	19.4
Other prepaid expenses	15.3	16.8
Loans in process	13.1	19.6
Repossessed assets	9.5	2.5
FDIC loss-share receivable (note 4)	3.5	5.7
Net deferred tax asset (note 11)	1.9	7.0
Other	38.7	44.5
Total other assets	786.2	719.9
Residential Mortgage Loan [Member]
Schedule Of Other Assets [Line Items]
REO	7.1	13.6
Commercial Real Estate Loan [Member]
Schedule Of Other Assets [Line Items]
REO	$ 5.5	$ 11.0

XML

Other Assets and Other Liabilities - Components of Other Assets (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Other Assets [Line Items]
Fair value of payroll services			$ 9.2	$ 20.6
Contingent receivable on payroll services	$ 2.8		$ 2.8
Vantiv, Inc [Member]
Schedule Of Other Assets [Line Items]
Percentage of ownership in joint venture		49.00%
Fair value of payroll services		$ 20.6
Payroll Services Sale [Member]
Schedule Of Other Assets [Line Items]
Fair value of payroll services	$ 9.2

XML

Other Assets and Other Liabilities - Components of Other Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Other Liabilities Disclosure [Abstract]
Fair value of derivative financial instruments (notes 18 and 20)	$ 109.5	$ 97.0
Liabilities for supplemental retirement plans (note 16)	63.9	60.4
Accrued employee benefits	48.4	42.0
Accrued expenses payable	43.7	55.2
Payables arising from securities brokerage and insurance businesses	34.7	37.6
Other postretirement plan (note 16)	14.0	14.6
Accrued interest payable	13.3	13.7
Liability for unsettled purchases of securities	5.0	91.5
Funded status of defined benefit pension plans (note 16)	(26.6)	34.9
Other	49.9	53.7
Total other liabilities	382.4	$ 500.6
Business Combination, Contingent payable	$ 2.0

XML

Deposits - Schedule of Deposits (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Deposits
Non-interest-bearing, Amount	$ 6,178.6	$ 5,655.1
Savings, interest-bearing checking and money market, Amount	17,420.7	15,252.4
Within 3 months, Amount	991.5	1,254.3
After 3 but within 6 months, Amount	679.6	912.5
After 6 months but within 1 year, Amount	1,915.6	1,306.7
After 1 but within 2 years, Amount	636.1	1,341.0
After 2 but within 3 years, Amount	153.5	230.9
After 3 but within 4 years, Amount	101.9	85.5
After 4 but within 5 years, Amount	339.6	96.2
After 5 years, Amount	0.3	3.6
Total, Amount	4,818.1	5,230.7
Total deposits	$ 28,417.4	$ 26,138.2
Non-interest-bearing, Weighted Average Rate	0.00%	0.00%
Savings, interest-bearing checking and money market, Weighted Average Rate	0.21%	0.19%
Within 3 months, Weighted Average Rate	0.69%	0.63%
After 3 but within 6 months, Weighted Average Rate	0.86%	0.62%
After 6 months but within 1 year, Weighted Average Rate	1.10%	0.79%
After 1 but within 2 years, Weighted Average Rate	1.06%	1.36%
After 2 but within 3 years, Weighted Average Rate	0.98%	1.40%
After 3 but within 4 years, Weighted Average Rate	1.46%	1.07%
After 4 but within 5 years, Weighted Average Rate	1.81%	1.51%
After 5 years, Weighted Average Rate	2.44%	2.45%
Total, Weighted Average Rate	1.03%	0.91%
Total deposits, Weighted Average Rate	0.30%	0.29%

XML

Deposits - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Banking and Thrift [Abstract]
Time deposits issued in amounts of $100,000 or more	$ 2,100.0	$ 2,100.0
Non-interest-bearing deposit overdrafts	$ 1.6	$ 2.6

XML

Deposits - Schedule of Interest Expense on Deposits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Banking and Thrift [Abstract]
Savings, interest-bearing checking and money market	$ 43.5	$ 36.7	$ 33.0
Time	52.0	44.2	48.1
Total	$ 95.5	$ 80.9	$ 81.1

XML

Borrowings - Summary of Borrowings (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Fixed-rate FHLB advances maturing, within 1 month, Amount	$ 2,750.0	$ 1,825.0
Fixed-rate FHLB advances maturing, After 1 month but within 1 year, Amount	450.0	200.2
Fixed-rate FHLB advances maturing, After 2 but within 3 years, Amount	258.6
Fixed-rate FHLB advances maturing, After 3 but within 4 years, Amount		261.1
Fixed-rate FHLB advances maturing, After 5 years, Amount	5.2	5.4
Total FHLB advances, Amount	3,463.8	2,291.7	$ 3,719.8
Customer repurchase agreements maturing, within 1 month, Amount	469.5	486.0
Total customer repurchase agreements, Amount	469.5	486.0	501.2
Federal funds purchased maturing, within 1 month, Amount	374.0	913.0
Total federal funds purchased, Amount	374.0	913.0	825.0
Other borrowings maturing, within 1 year, Amount		1.0
Total other borrowings, Amount		1.0	$ 11.0
Total borrowings, Amount	$ 4,307.3	$ 3,691.7
Fixed rate FHLB advances maturing, within 1 month, Weighted Average Rate	0.44%	0.26%
Fixed rate FHLB advances maturing, After 1 month but within 1 year, Weighted Average Rate	0.57%	0.24%
Fixed-rate FHLB advances maturing, After 2 but within 3 years, Weighted Average Rate	2.71%
Fixed-rate FHLB advances maturing, After 3 but within 4 years, Weighted Average Rate		2.71%
Fixed-rate FHLB advances maturing, After 5 years, Weighted Average Rate	1.34%	1.33%
Total FHLB advances, Weighted Average Rate	0.63%	0.54%
Retail repurchase agreements maturing, within 1 month, Weighted Average Rate	0.19%	0.18%
Total customer repurchase agreements, Weighted Average Rate	0.19%	0.18%
Federal funds purchased maturing, within 1 month, Weighted Average Rate	0.32%	0.15%
Total federal funds purchased, Weighted Average Rate	0.32%	0.15%
Other borrowings maturing, within 1 year, Weighted Average Rate		1.75%
Total other borrowings, Weighted Average Rate		1.75%
Total borrowings, Weighted Average Rate	0.55%	0.39%

XML

Borrowings - Additional Information (Detail) $ in Billions	Dec. 31, 2015 USD ($)
Debt Disclosure [Abstract]
Repurchase agreements and advances borrowing limit	$ 10.5
Unsecured borrowing capacity	$ 1.1

XML

Borrowings - Interest Expense on Borrowings (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
FHLB advances	$ 9.8	$ 9.2	$ 8.2
Customer repurchase agreements	0.9	1.0	1.1
Federal funds purchased	0.8	0.8	1.2
Other borrowings		0.1
Total	$ 11.5	$ 11.1	$ 10.5

XML

Borrowings - Information Concerning Parent Company Borrowings (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Line Items]
FHLB advances, Balance at year end	$ 3,463.8	$ 2,291.7	$ 3,719.8
FHLB advances, Average outstanding during the year	2,306.6	2,593.7	2,043.9
FHLB advances, Maximum outstanding at any month end	$ 3,463.8	$ 3,419.5	$ 3,719.8
FHLB advances, Average interest rate during the year	0.42%	0.36%	0.40%
Customer repurchase agreements, Balance at year end	$ 469.5	$ 486.0	$ 501.2
Customer repurchase agreements, Average outstanding during the year	463.6	482.0	522.7
Customer repurchase agreements, Maximum outstanding at any month end	$ 504.5	$ 519.2	$ 581.2
Customer repurchase agreements, Average interest rate during the year	0.19%	0.20%	0.20%
Federal funds purchased and Other borrowings, Balance at year end	$ 374.0	$ 913.0	$ 825.0
Federal funds purchased and Other borrowings, Average outstanding during the year	411.0	471.8	641.2
Federal funds purchased and Other borrowings, Maximum outstanding at any month end	$ 582.0	$ 960.0	$ 934.0
Federal funds purchased and Other borrowings, Average interest rate during the year	0.19%	0.17%	0.19%
Other borrowings, Balance at year end		$ 1.0	$ 11.0
Other borrowings, Carrying amount of collateral securities at year end		1.1	1.1
Other borrowings, Average outstanding during the year	$ 0.6	57.1	3.9
Other borrowings, Maximum outstanding at any month end	$ 1.0	$ 206.2	$ 11.0
Other borrowings, Average interest rate during the year	1.76%	0.25%	0.51%
Securities Sold under Agreements to Repurchase [Member]
Debt Disclosure [Line Items]
Customer repurchase agreements, Balance at year end		$ 1.0
Other borrowings, Carrying amount of collateral securities at year end	$ 478.9	$ 495.7	$ 511.2

XML

Notes and Debentures - Schedule of Subordinated Borrowing (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Subordinated Borrowing [Line Items]
Notes and debentures	$ 125.0
Total notes and debentures	1,038.7	$ 1,033.5
People's United Financial, Inc. [Member]
Subordinated Borrowing [Line Items]
Total notes and debentures	622.5	621.1
People's United Financial, Inc. [Member] | 3.65% Senior Notes Due 2022 [Member]
Subordinated Borrowing [Line Items]
Notes and debentures	498.8	498.6
People's United Financial, Inc. [Member] | 5.80% Fixed Rate/Floating Rate Subordinated Notes Due 2017 [Member]
Subordinated Borrowing [Line Items]
Notes and debentures	123.7	122.5
People's United Bank [Member] | 4.00% Subordinated Notes Due 2024 [Member]
Subordinated Borrowing [Line Items]
Notes and debentures	$ 416.2	$ 412.4

XML

Notes and Debentures - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015
Subordinated Borrowing [Line Items]
Interest rate on debt	5.80%
Debt instrument, maturity date	Apr. 16, 2024
Redemption date description	The Bank may redeem the notes in whole, but not in part, at its option at a redemption price equal to 100% of the principal amount of the notes together with accrued but unpaid interest to, but excluding, the date fixed for redemption, within 90 days of the occurrence of a "regulatory event" (as defined). Pursuant to capital regulations of the OCC, effective January 1, 2015, the Bank may not redeem the notes prior to maturity without the prior approval of the OCC.
4.00% Subordinated Notes Due 2024 [Member]
Subordinated Borrowing [Line Items]
Interest rate on debt	4.00%
People's United Financial, Inc. [Member]
Subordinated Borrowing [Line Items]
Subordinated borrowing conversion rate	0.685%
People's United Financial, Inc. [Member] | 3.65% Senior Notes Due 2022 [Member]
Subordinated Borrowing [Line Items]
Debt instrument interest rate	3.65%
Debt instrument call option date	Sep. 06, 2022
Percentage of redemption price to principal amount	100.00%
Subordinated notes due year	2022
Frequency of payment of debt	Semi-annually
People's United Financial, Inc. [Member] | 5.80% Fixed Rate/Floating Rate Subordinated Notes Due 2017 [Member]
Subordinated Borrowing [Line Items]
Percentage of redemption price to principal amount	100.00%
Subordinated notes due year	2017
Frequency of payment of debt	Semi-annually
Interest rate on debt	5.80%
Debt issue date	2007
Subordinated borrowing interest rate	1.05%
People's United Bank [Member] | 4.00% Subordinated Notes Due 2024 [Member]
Subordinated Borrowing [Line Items]
Percentage of redemption price to principal amount	100.00%
Frequency of payment of debt	Semi-annually
Number of days excluded for redemption of principal amount on occurrence of a regulatory event	90 days

XML

Income Taxes - Summary of Total Income Tax Expense (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income tax expense applicable to pre-tax income	$ 34.6	$ 33.1	$ 32.2	$ 30.5	$ 32.6	$ 29.7	$ 38.9	$ 27.7	$ 130.4	$ 128.9	$ 115.2
Income tax benefit applicable to items reported in total other comprehensive loss (note 15)									(5.3)	(6.7)	(34.6)
Total									$ 125.1	$ 122.2	$ 80.6

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Income Taxes - Income Tax Effects Related to Items Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Federal									$ 103.6	$ 111.9	$ 89.9
State									12.7	10.3	9.8
Total current tax expense									116.3	122.2	99.7
Deferred tax expense									14.1	6.7	15.5
Total income tax expense	$ 34.6	$ 33.1	$ 32.2	$ 30.5	$ 32.6	$ 29.7	$ 38.9	$ 27.7	$ 130.4	$ 128.9	$ 115.2

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Income Taxes - Income Tax Effects Related to Items Recognized in Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Decrease in valuation allowance for state deferred tax assets	$ (0.1)	$ (1.2)	$ (2.3)

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Income Tax Expense [Line Items]
U.S. federal statutory rate	35.00%
Company's housing investment	$ 83.5	$ 69.6
Future contingent commitments	$ 74.9
Amortization period	10 years
Income tax expense	$ 12.6	10.7	$ 8.5
Connecticut tax net operating loss carryforwards	1,400.0
Current income tax receivable	26.3	21.1
Accrued interest expense related to the unrecognized income tax benefits	$ 0.6	$ 0.7
Minimum [Member]
Schedule Of Income Tax Expense [Line Items]
Tax net operating loss carryforwards	2020
Maximum [Member]
Schedule Of Income Tax Expense [Line Items]
Tax net operating loss carryforwards	2035

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Income Taxes - Summary of Income Tax Reconciliation (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Expected income tax expense									$ 136.7	$ 133.2	$ 121.7
State income tax, net of federal tax effect									9.3	8.2	7.3
Tax-exempt interest									(16.4)	(13.2)	(11.7)
Tax-exempt income from BOLI									(1.6)	(2.0)	(1.6)
Federal income tax credits									(0.4)	0.8	(3.0)
Other, net									2.8	1.9	2.5
Total income tax expense	$ 34.6	$ 33.1	$ 32.2	$ 30.5	$ 32.6	$ 29.7	$ 38.9	$ 27.7	$ 130.4	$ 128.9	$ 115.2
Effective income tax rate									33.40%	33.90%	33.10%

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Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Leasing activities	$ 101.5	$ 87.1
Allowance for loan losses and non-accrual interest	82.7	77.4
State tax net operating loss carryforwards, net of federal tax effect	68.0	67.2
Equity-based compensation	22.9	22.0
Pension and other postretirement benefits	12.2	35.8
Unrealized loss on securities transferred to held to maturity	12.0	13.1
Unrealized loss on securities available for sale	10.8	2.3
Basis difference in affordable housing investments		3.1
Other deductible temporary differences	35.1	32.6
Total deferred tax assets	345.2	340.6
Less: valuation allowance for state deferred tax assets	(68.0)	(68.1)
Total deferred tax assets, net of the valuation allowance	277.2	272.5
Tax over book depreciation	(185.4)	(160.3)
Acquisition-related deferred tax liabilities	(39.9)	(51.0)
Book over tax income recognized on consumer loans	(14.6)	(12.4)
Deferred cancellation-of-indebtedness income	(13.4)	(17.5)
Mark-to-market and original issue discounts for tax purposes	(7.3)	(7.7)
Temporary differences related to merchant services joint venture	(6.8)	(7.2)
Other taxable temporary differences	(7.9)	(9.4)
Total deferred tax liabilities	(275.3)	(265.5)
Net deferred tax asset	$ 1.9	$ 7.0

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Income Taxes - Unrecognized Income Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Banking and Thrift, Interest [Abstract]
Balance at beginning of year	$ 3.0	$ 3.0	$ 2.9
Additions for tax positions taken in prior years	0.1	0.1	0.1
Reductions for tax positions taken in prior years	0.0	0.0	0.0
Reductions attributable to audit settlements/lapse of statue of limitations	(0.4)	(0.1)
Balance at end of year	$ 2.7	$ 3.0	$ 3.0

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Stockholders' Equity and Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended								12 Months Ended
	Nov. 30, 2012	Apr. 30, 2007	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Stockholders Equity [Line Items]
Common stock, shares authorized			1,950,000,000				1,950,000,000				1,950,000,000	1,950,000,000
Common stock, par value			$ 0.01				$ 0.01				$ 0.01	$ 0.01
Common stock, shares issued			399,200,000				396,800,000				399,200,000	396,800,000
Percent of outstanding common stock authorized for repurchase	10.00%
Common stock, shares outstanding authorized for repurchase	33,600,000
Cost of common stock repurchased													$ 458.9
Original loan amount ESOP		$ 216.8
ESOP shares purchased in open market		10,500,000
Employee stock ownership plan (ESOP), number of shares			7,317,499				7,700,000				7,317,499	7,700,000
Unallocated common stock of employee stock ownership plan, Value			$ 151.8				$ 159.0				$ 151.8	$ 159.0
Dividends paid per common share											$ 0.6675	$ 0.6575	$ 0.6475
Dividend payout ratio			71.50%	73.90%	81.80%	83.70%	76.50%	80.20%	68.40%	91.50%	77.30%	78.20%	88.10%
Cash dividends payable to parent company											$ 245.0	$ 244.0	$ 232.0
November 2012 Repurchase Authorization [Member]
Schedule Of Stockholders Equity [Line Items]
Cost of common stock repurchased													458.9
People's United Financial, Inc. [Member]
Schedule Of Stockholders Equity [Line Items]
Preferred stock, shares authorized			50,000,000								50,000,000
Preferred stock par value, per share			$ 0.01								$ 0.01
Common stock, shares authorized			1,950,000,000								1,950,000,000
Common stock, par value			$ 0.01								$ 0.01
Common stock, shares issued			399,200,000								399,200,000
Preferred stock, shares outstanding			0								0
Cash dividends payable to parent company											$ 245.0	$ 244.0	$ 232.0
People's United Bank [Member]
Schedule Of Stockholders Equity [Line Items]
Retained net income under federal regulations											$ 24.3

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Regulatory Capital Requirements - Additional Information (Detail) - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier 1 capital, Ratio, Minimum capital adequacy	4.50%
Capital conservation buffer	2.50%
Common Equity Tier 1 Capital, Ratio, Minimum Capital Adequacy including conservation buffer	7.00%
Common Tier 1 buffer phase start year	2016
Risk-based capital Tier 1, Ratio, Minimum Capital Adequacy	6.00%	4.00%
Risk-based capital tier 1, Ratio, Minimum capital adequacy including conservation buffer	8.50%
Total, Ratio, Minimum capital adequacy	8.00%
Total, Ratio, Minimum capital adequacy including conservation buffer	10.50%
Leverage (core) capital, Ratio	4.00%
Risk-weighted assets	$ 29.6	$ 27.5
Adjusted total assets for regulatory capital ratios		$ 34.0
Minimum [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Estimated basis point that negatively impacted on risk-based capital ratios	0.25%
Maximum [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Estimated basis point that negatively impacted on risk-based capital ratios	0.35%

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Regulatory Capital Requirements - Regulatory Capital Requirements and Ratio under Basel III Capital Rules (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage (core) capital, Ratio	4.00%
Total, Ratio	8.00%
Leverage (core) capital, Minimum Capital Adequacy, Amount		$ 1,360.8
Risk-based capital Tier 1, Minimum Capital Adequacy, Amount		1,098.2
Total, Minimum Capital Adequacy, Amount		$ 2,196.3
Leverage (core) capital, Ratio, Minimum Capital Adequacy		4.00%
Common equity tier 1 capital, Ratio, Minimum capital adequacy	4.50%
Risk-based capital Tier 1, Ratio, Minimum Capital Adequacy	6.00%	4.00%
Total, Ratio, Minimum Capital Adequacy		8.00%
Leverage (core) capital, Well-Capitalized, Amount		$ 1,700.9
Risk-based capital Tier 1, Well-Capitalized, Amount		1,647.3
Total, Well-Capitalized, Amount		$ 2,745.4
Leverage (core) capital, Ratio , Well-Capitalized		5.00%
Risk-based capital Tier 1, Ratio, Well-Capitalized		6.00%
Total, Ratio, Well-Capitalized		10.00%
People's United Financial, Inc. [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage (core) capital, Amount	$ 2,898.1
Common Equity Tier 1 capital, Amount	2,898.1
Risk-based capital Tier 1, Amount	2,898.1
Total, Amount	$ 3,470.5
Leverage (core) capital, Ratio	8.00%
Common Equity Tier 1 capital, Ratio	9.80%
Risk-based capital Tier 1, Ratio	9.80%
Total, Ratio	11.70%
Leverage (core) capital, Minimum Capital Adequacy, Amount	$ 1,440.6
Common Equity Tier 1 capital, Minimum Capital Adequacy, Amount	1,620.7
Risk-based capital Tier 1, Minimum Capital Adequacy, Amount	1,778.8
Total, Minimum Capital Adequacy, Amount	$ 2,371.7
Leverage (core) capital, Ratio, Minimum Capital Adequacy	4.00%
Common equity tier 1 capital, Ratio, Minimum capital adequacy	4.50%
Risk-based capital Tier 1, Ratio, Minimum Capital Adequacy	6.00%
Total, Ratio, Minimum Capital Adequacy	8.00%
Leverage (core) capital, Well-Capitalized, Amount	$ 1,800.8
Common Equity Tier 1 capital, Well-Capitalized, Amount	2,341.0
Risk-based capital Tier 1, Well-Capitalized, Amount	2,371.7
Total, Well-Capitalized, Amount	$ 2,964.6
Leverage (core) capital, Ratio , Well-Capitalized	5.00%
Common Equity Tier 1 Capital, Ratio, Well-Capitalized	6.50%
Risk-based capital Tier 1, Ratio, Well-Capitalized	8.00%
Total, Ratio, Well-Capitalized	10.00%
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage (core) capital, Amount	$ 3,012.7
Common Equity Tier 1 capital, Amount	3,012.7
Risk-based capital Tier 1, Amount	3,012.7
Total, Amount	$ 3,726.3
Leverage (core) capital, Ratio	8.40%
Common Equity Tier 1 capital, Ratio	10.20%
Risk-based capital Tier 1, Ratio	10.20%
Total, Ratio	12.60%
Leverage (core) capital, Minimum Capital Adequacy, Amount	$ 1,431.9
Common Equity Tier 1 capital, Minimum Capital Adequacy, Amount	1,610.9
Risk-based capital Tier 1, Minimum Capital Adequacy, Amount	1,777.3
Total, Minimum Capital Adequacy, Amount	$ 2,369.7
Leverage (core) capital, Ratio, Minimum Capital Adequacy	4.00%
Common equity tier 1 capital, Ratio, Minimum capital adequacy	4.50%
Risk-based capital Tier 1, Ratio, Minimum Capital Adequacy	6.00%
Total, Ratio, Minimum Capital Adequacy	8.00%
Leverage (core) capital, Well-Capitalized, Amount	$ 1,789.8
Common Equity Tier 1 capital, Well-Capitalized, Amount	2,326.8
Risk-based capital Tier 1, Well-Capitalized, Amount	2,369.7
Total, Well-Capitalized, Amount	$ 2,962.1
Leverage (core) capital, Ratio , Well-Capitalized	5.00%
Common Equity Tier 1 Capital, Ratio, Well-Capitalized	6.50%
Risk-based capital Tier 1, Ratio, Well-Capitalized	8.00%
Total, Ratio, Well-Capitalized	10.00%

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Regulatory Capital Requirements - Regulatory Capital Requirements and Ratio under Basel III Capital Rules (Parenthetical) (Detail)	Dec. 31, 2015
Banking and Thrift [Abstract]
Total Risk-Weighted Assets for allowance for loan losses	1.25%

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Regulatory Capital Requirements - Regulatory Capital Requirements and Ratio (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage (core) capital, Ratio	4.00%
Total, Ratio	8.00%
Leverage (core) capital, Well-Capitalized, Amount		$ 1,700.9
Risk-based capital Tier 1, Well-Capitalized, Amount		1,647.3
Total, Well-Capitalized, Amount		$ 2,745.4
Leverage (core) capital, Ratio , Well-Capitalized		5.00%
Risk-based capital Tier 1, Ratio, Well-Capitalized		6.00%
Total, Ratio, Well-Capitalized		10.00%
Tangible capital, Minimum Capital Adequacy, Amount		$ 510.3
Leverage (core) capital, Minimum Capital Adequacy, Amount		1,360.8
Risk-based capital Tier 1, Minimum Capital Adequacy, Amount		1,098.2
Total, Minimum Capital Adequacy, Amount		$ 2,196.3
Tangible capital, Ratio, Minimum Capital Adequacy		1.50%
Leverage (core) capital, Ratio, Minimum Capital Adequacy		4.00%
Risk-based capital Tier 1, Ratio, Minimum Capital Adequacy	6.00%	4.00%
Total, Ratio, Minimum Capital Adequacy		8.00%
People's United Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tangible capital, Amount		$ 2,881.5
Leverage (core) capital, Amount		2,881.5
Risk-based capital Tier 1, Amount		2,881.5
Total, Amount		$ 3,582.2
Tangible capital, Ratio		8.50%
Leverage (core) capital, Ratio		8.50%
Risk-based capital Tier 1, Ratio		10.50%
Total, Ratio		13.00%

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Regulatory Capital Requirements - Regulatory Capital Requirements and Ratio (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2014
Banking and Thrift [Abstract]
Risk-weighted assets percentage	1.25%

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Earnings Per Common Share - Basic and Diluted Earnings Per Share, Reflecting Application of Two-Class Method (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Net income	$ 70.8	$ 68.4	$ 61.7	$ 59.2	$ 64.7	$ 61.6	$ 72.3	$ 53.1	$ 260.1	$ 251.7	$ 232.4
Dividends and undistributed earnings allocated to participating securities									(1.1)	(1.2)	(1.2)
Income attributable to common shareholders									$ 259.0	$ 250.5	$ 231.2
Average common shares outstanding for basic EPS	301,380	301,000	300,090	299,150	298,630	298,420	298,220	297,690	300,400	298,200	311,900
Effect of dilutive equity-based awards										100	100
Average common and common-equivalent shares for diluted EPS	301,380	301,000	300,090	299,150	298,650	298,440	298,240	297,720	300,400	298,300	312,000
Basic EPS	$ 0.23	$ 0.23	$ 0.20	$ 0.20	$ 0.22	$ 0.21	$ 0.24	$ 0.18	$ 0.86	$ 0.84	$ 0.74
Diluted EPS	$ 0.23	$ 0.23	$ 0.20	$ 0.20	$ 0.22	$ 0.21	$ 0.24	$ 0.18	$ 0.86	$ 0.84	$ 0.74

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Earnings Per Common Share - Additional Information (Detail) - shares shares in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Anti-dilutive equity-based awards excluded from calculation of diluted EPS	19.7	17.7	14.0

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Comprehensive Income - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 4,633.1	$ 4,568.4	$ 5,038.8
Amounts reclassified from AOCL	7.9	5.5	5.6
Current period other comprehensive income (loss)	(9.0)	(13.1)	(58.2)
Ending Balance	4,731.6	4,633.1	4,568.4
Pension and Other Postretirement Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(142.9)	(85.0)	(148.2)
Other comprehensive income (loss) before reclassifications	(2.2)	(62.6)	58.3
Amounts reclassified from AOCL	5.1	4.7	4.9
Current period other comprehensive income (loss)	2.9	(57.9)	63.2
Ending Balance	(140.0)	(142.9)	(85.0)
Net Unrealized Gains (Losses) on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(3.7)	(46.5)	52.8
Other comprehensive income (loss) before reclassifications	(14.0)	44.6	(99.3)
Amounts reclassified from AOCL		(1.8)
Current period other comprehensive income (loss)	(14.0)	42.8	(99.3)
Ending Balance	(17.7)	(3.7)	(46.5)
Net Unrealized Gain (Losses) On Securities Transferred To Held To Maturity [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(21.5)	(23.3)
Other comprehensive income (loss) before reclassifications			(23.3)
Amounts reclassified from AOCL	2.0	1.8
Current period other comprehensive income (loss)	2.0	1.8	(23.3)
Ending Balance	(19.5)	(21.5)	(23.3)
Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(0.1)	(0.3)	(1.5)
Other comprehensive income (loss) before reclassifications	(0.7)	(0.6)	0.5
Amounts reclassified from AOCL	0.8	0.8	0.7
Current period other comprehensive income (loss)	0.1	0.2	1.2
Ending Balance		(0.1)	(0.3)
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(168.2)	(155.1)	(96.9)
Other comprehensive income (loss) before reclassifications	(16.9)	(18.6)	(63.8)
Amounts reclassified from AOCL	7.9	5.5	5.6
Current period other comprehensive income (loss)	(9.0)	(13.1)	(58.2)
Ending Balance	$ (177.2)	$ (168.2)	$ (155.1)

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Comprehensive Income - Summary of Amounts Reclassified from AOCL (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income tax expense	$ (105.4)	$ (101.5)	$ (93.9)	$ (89.7)	$ (97.3)	$ (91.3)	$ (111.2)	$ (80.8)	$ (390.5)	$ (380.6)	$ (347.6)
Income tax expense	34.6	33.1	32.2	30.5	32.6	29.7	38.9	27.7	130.4	128.9	115.2
Net income	$ (70.8)	$ (68.4)	$ (61.7)	$ (59.2)	$ (64.7)	$ (61.6)	$ (72.3)	$ (53.1)	(260.1)	(251.7)	(232.4)
Total reclassifications for the period									(7.9)	(5.5)	(5.6)
Pension and Other Postretirement Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net actuarial loss									(9.1)	(8.4)	(8.8)
Prior service credit									1.0	1.0	1.1
Income before income tax expense									(8.1)	(7.4)	(7.7)
Income tax expense									3.0	2.7	2.8
Net income									(5.1)	(4.7)	(4.9)
Total reclassifications for the period									(5.1)	(4.7)	(4.9)
Net Unrealized Gains (Losses) on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income tax expense										3.0
Income tax expense										(1.2)
Net income										1.8
Total reclassifications for the period										1.8
Net Unrealized Gain (Losses) On Securities Transferred To Held To Maturity [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income tax expense									(3.1)	(3.0)
Income tax expense									1.1	1.2
Net income									(2.0)	(1.8)
Total reclassifications for the period									(2.0)	(1.8)
Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income tax expense									(1.2)	(1.3)	(1.2)
Income tax expense									0.4	0.5	0.5
Net income									(0.8)	(0.8)	(0.7)
Total reclassifications for the period									(0.8)	(0.8)	(0.7)
Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges [Member] | Interest Rate Swaps [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense - notes and debentures									(1.3)	(1.4)	(1.3)
Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges [Member] | Interest Rate Locks [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense - notes and debentures									$ 0.1	$ 0.1	$ 0.1

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Comprehensive Income - Deferred Income Taxes Applicable to Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equity [Abstract]
Net actuarial loss and other amounts related to pension and other postretirement plans	$ 81.5	$ 83.2	$ 50.0
Net unrealized loss on securities available for sale	10.3	2.2	27.3
Net unrealized loss on securities transferred to held to maturity	11.4	12.5	13.7
Net unrealized loss on derivatives accounted for as cash flow hedges			0.2
Total deferred income taxes	$ 103.2	$ 97.9	$ 91.2

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Comprehensive Income - Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equity [Abstract]
Net actuarial gain (loss) arising during the year, Pre-Tax	$ (3.5)	$ (98.5)	$ 92.0
Reclassification adjustment for net actuarial loss included in net income, Pre-Tax	9.1	8.4	8.8
Net actuarial gain (loss), Pre-Tax	5.6	(90.1)	100.8
Reclassification adjustment for prior service credit included in net income, Pre-Tax	(1.0)	(1.0)	(1.1)
Net actuarial gain (loss) and prior service credit, Pre-Tax	4.6	(91.1)	99.7
Net unrealized holding gains (losses) arising during the year, Pre-Tax	(22.1)	70.9	(194.4)
Reclassification adjustment for net realized gains included in net income, Pre-Tax		(3.0)
Unrealized holding losses on securities transferred during the year, Pre-Tax			37.0
Unrealized holding losses on securities transferred during the year, Tax Effect			13.7
Unrealized holding losses on securities transferred during the year, After Tax			37.0
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income, Pre-Tax	3.1	3.0
Net unrealized gains (losses), Pre-Tax	(22.1)	67.9	(157.4)
Unrealized holding losses on securities transferred during the year, Pre-Tax			(37.0)
Unrealized holding losses on securities transferred during the year, Tax Effect			13.7
Unrealized holding losses on securities transferred during the year, After Tax			37.0
Net unrealized gains (losses), Pre-Tax	3.1	3.0	(37.0)
Net unrealized gains (losses) arising during the year, Pre-Tax	(1.1)	(0.9)	0.7
Reclassification adjustment for net realized losses included in net income, Pre-Tax	1.2	1.3	1.2
Net actuarial gain (loss) arising during the year, Tax Effect	1.3	35.9	(33.7)
Net unrealized gains, Pre-Tax	0.1	0.4	1.9
Reclassification adjustment for net actuarial loss included in net income, Tax Effect	(3.4)	(3.1)	(3.2)
Total other comprehensive loss, Pre-Tax	(14.3)	(19.8)	(92.8)
Net actuarial gain (loss), Tax Effect	(2.1)	32.8	(36.9)
Reclassification adjustment for prior service credit included in net income, Tax Effect	0.4	0.4	0.4
Net actuarial gain (loss) and prior service credit, Tax Effect	(1.7)	33.2	(36.5)
Net unrealized holding gains (losses) arising during the year, Tax Effect	8.1	(26.3)	58.1
Reclassification adjustment for net realized gains included in net income, Tax Effect		1.2
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income, Tax Effect	(1.1)	(1.2)
Net unrealized gains (losses), Tax Effect	8.1	(25.1)	58.1
Net unrealized gains (losses), Tax Effect	(1.1)	(1.2)	13.7
Net unrealized gains (losses) arising during the year, Tax Effect	0.4	0.3	(0.2)
Reclassification adjustment for net realized losses included in net income, Tax Effect	(0.4)	(0.5)	(0.5)
Net actuarial gain (loss) arising during the year, After Tax	(2.2)	(62.6)	58.3
Net unrealized gains, Tax Effect	0.0	(0.2)	(0.7)
Reclassification adjustment for net actuarial loss included in net income, After Tax	5.7	5.3	5.6
Total other comprehensive loss, Tax Effect	5.3	6.7	34.6
Net actuarial gain (loss), After Tax	3.5	(57.3)	63.9
Reclassification adjustment for prior service credit included in net income, After Tax	(0.6)	(0.6)	(0.7)
Net actuarial gain (loss) and prior service credit, After Tax	2.9	(57.9)	63.2
Net unrealized holding gains (losses) arising during the year, After Tax	(14.0)	44.6	(136.3)
Reclassification adjustment for net realized gains included in net income, After Tax		(1.8)
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity included in net income, After Tax	2.0	1.8
Net unrealized gains (losses), After Tax	(14.0)	42.8	(99.3)
Net unrealized gains (losses), After Tax	2.0	1.8	(23.3)
Net unrealized gains (losses) arising during the year, After Tax	(0.7)	(0.6)	0.5
Reclassification adjustment for net realized losses included in net income, After Tax	0.8	0.8	0.7
Net unrealized gains, After Tax	0.1	0.2	1.2
Total other comprehensive loss, After Tax	$ (9.0)	$ (13.1)	$ (58.2)

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Employee Benefit Plans - People's United Employee Pension and Other Postretirement Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Average compensation term on which pension plan benefits are based, in years	5 years
Average compensation term within last ten years on which pension plan benefits are based, in years	5 years
Term considered when determining employee pension benefits, in years	10 years
Minimum age requirement to participate in pension plan, years	18 years
Minimum service hours per year requirement to participate in pension plan	1000 hours
Pension plan assets measured at fair value	$ 466,500,000	$ 439,900,000
Defined benefit plan, accumulated benefit obligations	63,900,000	60,400,000
Trust assets	$ 36,500,000	$ 37,100,000
Maximum percentage of any individual security	3.00%
Percentage of equity holdings invested in international equities	50.00%
Maximum percentage of fixed income holdings invested in issues rated below Baa	30.00%
Market value of total plan assets	2.50%
Qualified Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return assumption	7.50%	8.00%	8.00%
Net periodic benefit income	$ 12,800,000
Expected long-term rate of return assumption	7.25%
Defined benefit plan, mortality rate impact to benefit obligations	$ (7,700,000)
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, accumulated benefit obligations	480,400,000	$ 515,300,000
Defined benefit plan, projected benefit obligations	480,400,000	515,300,000	$ 430,500,000
Expected actuarial net gain (loss)	6,100,000
Prior service credit	800,000
Defined benefit plan, expected future benefit payments in year one	22,200,000
Defined benefit plan, expected future benefit payments in year two	23,500,000
Defined benefit plan, expected future benefit payments in year three	23,600,000
Defined benefit plan, expected future benefit payments in year four	23,000,000
Defined benefit plan, expected future benefit payments in year five	23,200,000
Defined benefit plan, expected future benefit payments after five years	138,200,000
Pension Plans [Member] | Qualified Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, accumulated benefit obligations	439,900,000	474,800,000
Defined benefit plan, projected benefit obligations	439,900,000	474,800,000
Pension Plans [Member] | Supplemental Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, accumulated benefit obligations	40,500,000	40,500,000
Defined benefit plan, projected benefit obligations	40,500,000	40,500,000
Trust assets	$ 29,200,000
Discount rate used to calculate net periodic benefit cost	4.20%
Other Pension Plan, Postretirement or Supplemental Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, expected future benefit payments in year one	$ 300,000
Expected employer contributions	5,300,000
Other Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, projected benefit obligations	14,000,000	$ 14,600,000	$ 10,300,000
Expected actuarial net gain (loss)	200,000
Defined benefit plan, expected future benefit payments in year one	900,000
Defined benefit plan, expected future benefit payments in year two	900,000
Defined benefit plan, expected future benefit payments in year three	900,000
Defined benefit plan, expected future benefit payments in year four	900,000
Defined benefit plan, expected future benefit payments in year five	900,000
Defined benefit plan, expected future benefit payments after five years	$ 3,800,000
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Accumulated unrecognized gain or loss percentage for amortization of actuarial gain loss	10.00%
Minimum [Member] | Pension Plans [Member] | Supplemental Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate used to determine benefit obligation	3.95%
Maximum [Member] | Pension Plans [Member] | Supplemental Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate used to determine benefit obligation	4.60%
People's Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of covered employee's eligible compensation	3.00%
Pension plan assets measured at fair value	$ 418,900,000
Amortization of unrecognized gain loss over average remaining life of plan participants	29 years
Defined benefit plan, expected future benefit payments in year one	$ 2,500,000
Expected employer contributions	0
People's Qualified Plan [Member] | Qualified Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, accumulated benefit obligations	$ 397,000,000
Discount rate used to determine benefit obligation	4.64%	4.20%	5.10%
Discount rate used to calculate net periodic benefit cost	4.20%	5.10%	4.25%
Discount rate	4.03%
People's Qualified Plan [Member] | Other Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate used to determine benefit obligation	4.60%	4.20%	5.10%
Discount rate used to calculate net periodic benefit cost	4.20%	5.10%	4.25%
Chittenden Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	$ 47,600,000
Amortization of unrecognized gain loss over average remaining life of plan participants	8 years
Defined benefit plan, expected future benefit payments in year one	$ 300,000
Expected employer contributions	0
Chittenden Qualified Plan [Member] | Qualified Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, projected benefit obligations	$ 42,900,000
Discount rate used to determine benefit obligation	4.45%	4.00%	4.90%
Discount rate used to calculate net periodic benefit cost	4.00%	4.90%	4.00%
Discount rate	3.70%

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Employee Benefit Plans - Changes in Benefit Obligations and Plan Assets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Beginning of year	$ 439.9
End of year	466.5	$ 439.9
Other assets	786.2	719.9
Other liabilities	382.4	500.6
Funded status at end of year	(14.0)	(14.6)
Other Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Beginning of year	14.6	10.3
Service cost	0.3	0.1	$ 0.2
Interest cost	0.6	0.5	0.5
Actuarial loss (gain)	(0.6)	4.8
Benefits paid	(0.9)	(1.1)
End of year	14.0	14.6	10.3
Other liabilities	(14.0)	(14.6)
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Beginning of year	515.3	430.5
Interest cost	21.1	21.4	19.8
Actuarial loss (gain)	(36.7)	88.0
Benefits paid	(16.6)	(15.9)
Settlements	(2.7)	(8.7)
End of year	480.4	515.3	430.5
Other assets	26.6
Other liabilities	40.5	75.4
Funded status at end of year	(13.9)	(75.4)
Fair Value of Plan Assets [Member] | Other Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contributions	0.9	1.1
Benefits paid	(0.9)	(1.1)
Funded status at end of year	(14.0)	(14.6)
Fair Value of Plan Assets [Member] | Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Beginning of year	439.9	431.4
Actual return on assets	(6.4)	26.2
Employer contributions	52.3	6.9
Benefits paid	(16.6)	(15.9)
Settlements	2.7	8.7
End of year	466.5	439.9	$ 431.4
Funded status at end of year	$ (13.9)	$ (75.4)

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Employee Benefit Plans - Changes in Benefit Obligations and Plan Assets (Parenthetical) (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2015 USD ($)
People's Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contributions	$ 40.0
Chittenden Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contributions	$ 10.0

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Employee Benefit Plans - Accumulated and Projected Benefit Obligations (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, accumulated benefit obligations	$ 63.9	$ 60.4
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, accumulated benefit obligations	480.4	515.3
Defined benefit plan, projected benefit obligations	480.4	515.3	$ 430.5
Qualified Plans [Member] | Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, accumulated benefit obligations	439.9	474.8
Defined benefit plan, projected benefit obligations	439.9	474.8
Supplemental Plans [Member] | Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, accumulated benefit obligations	40.5	40.5
Defined benefit plan, projected benefit obligations	$ 40.5	$ 40.5

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Employee Benefit Plans - Components of Net Periodic Benefit (Income) Expense and Other Amounts (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Net actuarial (gain) loss	$ 3.5	$ 98.5	$ (92.0)
Total pre-tax changes recognized in other comprehensive loss	(4.6)	91.1	(99.7)
Other Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.3	0.1	0.2
Interest cost	0.6	0.5	0.5
Recognized net actuarial loss	0.3
Recognized prior service credit	(0.2)	(0.2)	(0.2)
Net periodic benefit (income) expense	1.0	0.4	0.5
Net actuarial (gain) loss	(0.9)	4.8	(1.3)
Prior service credit	0.2	0.2	0.2
Total pre-tax changes recognized in other comprehensive loss	(0.7)	5.0	(1.1)
Total recognized in net periodic benefit (income) expense and other comprehensive loss	0.3	5.4	(0.6)
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	21.1	21.4	19.8
Expected return on plan assets	(34.4)	(32.0)	(30.2)
Recognized net actuarial loss	7.7	5.1	7.3
Recognized prior service credit	(0.8)	(0.8)	(0.8)
Settlements	1.2	3.3	1.5
Net periodic benefit (income) expense	(5.2)	(3.0)	(2.4)
Net actuarial (gain) loss	(4.7)	85.3	(99.5)
Prior service credit	0.8	0.8	0.9
Total pre-tax changes recognized in other comprehensive loss	(3.9)	86.1	(98.6)
Total recognized in net periodic benefit (income) expense and other comprehensive loss	$ (9.2)	$ 83.1	$ (101.0)

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Employee Benefit Plans - Pre-Tax Amounts in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Other Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ 4.2	$ 5.1
Prior service credit		(0.2)
Total pre-tax amounts included in AOCL	4.2	4.9
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	219.3	224.0
Prior service credit	(2.0)	(2.8)
Total pre-tax amounts included in AOCL	$ 217.3	$ 221.2

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Employee Benefit Plans - Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Expense (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Qualified Plans [Member]
Weighted-average assumptions used to determine net periodic benefit (income) expense for the years ended December 31:
Expected return on plan assets	7.50%	8.00%	8.00%
People's Qualified Plan [Member] | Qualified Plans [Member]
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	4.64%	4.20%	5.10%
Weighted-average assumptions used to determine net periodic benefit (income) expense for the years ended December 31:
Discount rate	4.20%	5.10%	4.25%
Chittenden Qualified Plan [Member] | Qualified Plans [Member]
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	4.45%	4.00%	4.90%
Weighted-average assumptions used to determine net periodic benefit (income) expense for the years ended December 31:
Discount rate	4.00%	4.90%	4.00%
Other Postretirement Plan [Member]
Assumed health care cost trend rates at December 31:
Health care cost trend rate assumed for next year	6.80%	7.05%	7.25%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.50%	4.50%	4.50%
Year that the rate reaches the ultimate trend rate	2027	2027	2027
Other Postretirement Plan [Member] | People's Qualified Plan [Member]
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	4.60%	4.20%	5.10%
Weighted-average assumptions used to determine net periodic benefit (income) expense for the years ended December 31:
Discount rate	4.20%	5.10%	4.25%

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Employee Benefit Plans - Expected Impact in 2016 of Change in Accounting Estimate for Qualified Plans (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
People's Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Increase in expected net periodic benefit income in 2016 using specific spot rates, Interest cost	$ 2.5
People's Qualified Plan [Member] | Discount Rates Used to Measure Net Periodic Benefit Income in 2016 [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	4.03%
People's Qualified Plan [Member] | Discount Rates that Would have been used to Measure Net Periodic Benefit Income under Prior Actuarial Methodology [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	4.64%
Chittenden Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Increase in expected net periodic benefit income in 2016 using specific spot rates, Interest cost	$ 0.3
Chittenden Qualified Plan [Member] | Discount Rates Used to Measure Net Periodic Benefit Income in 2016 [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	3.70%
Chittenden Qualified Plan [Member] | Discount Rates that Would have been used to Measure Net Periodic Benefit Income under Prior Actuarial Methodology [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	4.45%

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Employee Benefit Plans - Assets Allocation (Detail)	12 Months Ended
	Dec. 31, 2015
Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Policy Target Rate	5.00%
Policy Range Rate Minimum	0.00%
Policy Range Rate Maximum	20.00%
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Policy Target Rate	65.00%
Policy Range Rate Minimum	50.00%
Policy Range Rate Maximum	75.00%
Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Policy Target Rate	30.00%
Policy Range Rate Minimum	20.00%
Policy Range Rate Maximum	50.00%

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Employee Benefit Plans - Fair Value of Assets in Qualified Plans (Detail)	Dec. 31, 2015	Dec. 31, 2014
People's Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan Assets	100.00%	100.00%
Chittenden Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan Assets	100.00%	100.00%
Equity Securities [Member] | People's Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan Assets	69.00%	72.00%
Equity Securities [Member] | Chittenden Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan Assets	69.00%	72.00%
Cash and Fixed Income Securities [Member] | People's Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan Assets	31.00%	28.00%
Cash and Fixed Income Securities [Member] | Chittenden Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan Assets	31.00%	28.00%

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Employee Benefit Plans - Plan Assets Measured at Fair Value (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	$ 466.5	$ 439.9
Corporate, Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	215.3	244.4
Other Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	5.2	4.4
Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	26.3	8.9
Equity Securities [Member] | Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	105.8	71.0
Fixed Income Securities [Member] | Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	21.8	25.8
Fixed Income Securities [Member] | Corporate [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	81.6	73.8
Fixed Income Securities [Member] | State and Municipal [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	10.5	11.6
Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	241.6	253.3
Level 1 [Member] | Corporate, Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	215.3	244.4
Level 1 [Member] | Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	26.3	8.9
Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	224.9	186.6
Level 2 [Member] | Other Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	5.2	4.4
Level 2 [Member] | Equity Securities [Member] | Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	105.8	71.0
Level 2 [Member] | Fixed Income Securities [Member] | Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	21.8	25.8
Level 2 [Member] | Fixed Income Securities [Member] | Corporate [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	81.6	73.8
Level 2 [Member] | Fixed Income Securities [Member] | State and Municipal [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets measured at fair value	$ 10.5	$ 11.6

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Employee Benefit Plans - Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Apr. 30, 2007	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
ESOP, shares to be purchased	10,453,575
ESOP loan	$ 216.8	$ 188.6
Loan repayments expected annual through 2036		18.8
Cash dividends paid on unallocated ESOP shares		$ 5.1	$ 5.3	$ 5.4
Minimum age requirement to participate in ESOP		18 years
Minimum work experience within 12 months of hire needed to participate in ESOP		1000 hours
ESOP common stock allocated		3,136,076
Unallocated common stock of Employee Stock Ownership Plan, shares		7,317,499	7,700,000
Fair value of deferred ESOP shares		$ 118.2
ESOP compensation expense		$ 5.4	$ 5.1	$ 4.9

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Employee Benefit Plans - Employee Savings Plans - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Maximum percentage of pre-tax compensation an employee can contribute to savings plan	50.00%
Percentage of matching contribution on employee savings plan	100.00%
Trust assets	$ 36.5	$ 37.1
Related benefit obligation	23.4
Employee savings plan expense	449.5	436.0	$ 427.1
Employee Savings Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Trust assets	7.3
Employee savings plan expense	$ 22.1	$ 20.1	$ 20.0
Employee Savings Plan [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Maximum percentage employer will match on pre-tax compensation	4.00%

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Stock Based Compensation Plans - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted, vesting period					4 years
Options granted, vesting period				1 year
Long-term incentive plan		5,221,992	4,953,624	3,164,607
Employee benefits and share based compensation expense		$ 17,200,000	$ 14,900,000	$ 13,900,000
Total cost of shares repurchased and retired		3,200,000	3,000,000	2,200,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee benefits and share based compensation expense		$ 6,800,000	5,400,000	4,300,000
Unamortized cost for unvested stock options estimated forfeiture rate		5.00%
Unamortized cost for unvested options and awards		$ 7,400,000
Intrinsic value of stock options exercised		$ 5,100,000	1,100,000	1,300,000
Weighted-average vesting period, years		1 year 7 months 6 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee benefits and share based compensation expense		$ 9,400,000	8,700,000	8,800,000
Unamortized cost for unvested stock options estimated forfeiture rate		5.10%
Unamortized cost for unvested options and awards		$ 9,400,000
Weighted-average vesting period, years		1 year 6 months
Fair value of restricted stock awards		$ 9,400,000	$ 10,300,000	$ 9,400,000
Minimum tax withholding obligations upon the vesting of restricted stock awards granted		230,459	229,635	205,943
Total cost of shares repurchased and retired		$ 3,200,000	$ 3,000,000	$ 2,200,000
Share based compensation arrangement by share based payment award grants in period weighted average grant date fair value		$ 14.88	$ 14.01	$ 13.15
Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted under the Incentive Plans after two years				66.00%	50.00%
Options granted under the Incentive Plans after three years				100.00%	75.00%
Options granted under the Incentive Plans after four years					100.00%
Options granted under the Incentive Plans after one year				33.00%
Options granted, vesting period				2 years	2 years
Options granted, vesting period				3 years	3 years
New awards granted	0
Long-term incentive plan		5,221,992	562,355	3,164,607
Weighted-average grant-date fair value of options		$ 1.46	$ 1.51	$ 2.23
Dividend yield		4.40%	4.70%	5.00%
Expected volatility rate		20.00%	22.00%	33.00%
Risk-free interest rate		1.60%	1.60%	0.90%
Expected option life, years		5 years	5 years	5 years
Incentive Plans [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option expiration, maximum term					10 years
Directors' Equity Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance under the Directors' Equity Plan		1,192,500
Reserved shares remaining, available for future awards		251,071
New awards granted		62,690	57,330	58,896
Employee benefits and share based compensation expense		$ 900,000	$ 800,000	$ 800,000
Director's equity compensation plan fair value		$ 95,000
Share based compensation arrangement by share based payment award grants in period weighted average grant date fair value		$ 15.23	$ 14.63	$ 12.76
2014 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance under the Directors' Equity Plan		34,000,000
Reserved shares remaining, available for future awards		24,875,317
Number of shares depleted for every share subject to award other than option or stock appreciation right		$ 5.32
Number of shares depleted, Terms		Number of shares of common stock reserved under the 2014 Plan is depleted by one share for each option or stock appreciation right and by 5.32 shares for every share that is subject to an award other than an option or stock appreciation right.
2007 Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock and stock options per year over a five year period, in years		20.00%
Long-term incentive plan		4,391,269

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Stock Based Compensation Plans - Summary of Stock Option Incentive Plan (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding Beginning Balance	17,798,405	14,217,074	12,156,806
Granted	5,221,992	4,953,624	3,164,607
Forfeited	(1,290,396)	(896,003)	(840,292)
Exercised	(2,052,577)	(476,290)	(264,047)
Options outstanding at Ending Balance	19,677,424	17,798,405	14,217,074
Options Exercisable Ending Balance	10,547,093
Options outstanding Weighted Exercise Price Beginning Balance	$ 15.11	$ 15.43	$ 15.95
Granted	14.85	13.94	13.01
Forfeited	16.57	15.13	15.54
Exercised	13.35	12.48	9.73
Options outstanding Weighted Average Exercise Price Ending Balance Years	15.13	$ 15.11	$ 15.43
Options Exercisable Weighted Average Exercise Price	$ 15.83
Options Outstanding Weighted Average Remaining Contractual Term, in years	1 year 7 months 6 days
Options Exercisable Weighted Average Remaining Contractual Term	4 years
Options Outstanding Aggregate Intrinsic Value	$ 28.6
Options Exercisable Aggregate Intrinsic Value	$ 11.9

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Stock Based Compensation Plans - Summary of Option Outstanding and Exercisable (Detail)	12 Months Ended
	Dec. 31, 2015 $ / shares shares
11.52 - 13.05 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Exercise Price minimum	$ 11.52
Options Exercise Price maximum	$ 13.05
Number of options outstanding | shares	3,036,141
Remaining Life	6 years 8 months 12 days
Exercise Price	$ 12.84
Number of options exercisable | shares	2,010,763
Weighted Average Exercise Price	$ 12.83
13.42 - 15.80 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Exercise Price minimum	13.42
Options Exercise Price maximum	$ 15.80
Number of options outstanding | shares	11,260,621
Remaining Life	7 years 10 months 24 days
Exercise Price	$ 14.50
Number of options exercisable | shares	3,155,668
Weighted Average Exercise Price	$ 14.49
16.07 - 17.76 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Exercise Price minimum	16.07
Options Exercise Price maximum	$ 17.76
Number of options outstanding | shares	2,251,654
Remaining Life	2 years 4 months 24 days
Exercise Price	$ 16.97
Number of options exercisable | shares	2,251,654
Weighted Average Exercise Price	$ 16.97
18.10 - 21.63 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Exercise Price minimum	18.10
Options Exercise Price maximum	$ 21.63
Number of options outstanding | shares	3,129,008
Remaining Life	1 year 9 months 18 days
Exercise Price	$ 18.29
Number of options exercisable | shares	3,129,008
Weighted Average Exercise Price	$ 18.29

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Stock Based Compensation Plans - Summary of Stock Award Incentive Plans (Detail) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	568,273	660,617	617,796
Forfeited	(80,303)	(95,700)	(44,046)
Vested	(623,185)	(730,600)	(621,956)
Unvested restricted shares outstanding	1,232,317	1,367,532	1,533,215	1,581,421
Granted	$ 14.88	$ 14.01	$ 13.15
Forfeited	14.23	13.53	12.85
Vested	13.33	13.22	14.08
Unvested restricted shares outstanding, Weighted-Average Grant Date Fair Value	$ 14.14	$ 13.47	$ 13.12	$ 13.48

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Fair Value Measurements - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value transfers between level 1 and level 2	$ 0	$ 0
Maximum [Member] | Risk Participation Agreements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value of Derivatives, Net	$ 100,000	$ 100,000
GSE Residential Mortgage-Backed Securities and CMOs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maturity period of available-for-sale residential mortgage-backed securities portfolio	10 years	15 years
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount to impaired loans	10.00%

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	$ 6.7	$ 8.3
Securities available for sale, at fair value	4,527.7	3,993.7
Other assets	786.2	719.9
Fair Values, Assets	158.2	132.4
Fair Values, Liabilities	109.5	97.0
Fair value of total assets measured at fair value on a recurring basis	4,729.1	4,171.5
Fair value of total liabilities measured at fair value on a recurring basis	109.5	97.0
Exchange Traded Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	29.4	30.3
Fixed Income Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	5.1	6.0
Equity Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	2.0	0.8
US Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	6.7	8.3
U.S. Treasury and Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	362.8	56.8
GSE Residential Mortgage-Backed Securities and CMOs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	4,164.7	3,936.7
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0.2	0.2
Interest Rate Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	157.0	131.1
Fair Values, Liabilities	108.5	95.8
Foreign Exchange Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	0.6	0.8
Fair Values, Liabilities	0.2	0.5
Forward Commitments to Sell Residential Mortgage Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	0.6	0.5
Interest Rate-Lock Commitments on Residential Mortgage Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Liabilities	0.8	0.7
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of total assets measured at fair value on a recurring basis	400.9	96.2
Level 1 [Member] | Exchange Traded Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	29.4	30.3
Level 1 [Member] | Equity Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	2.0	0.8
Level 1 [Member] | US Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	6.7	8.3
Level 1 [Member] | U.S. Treasury and Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	362.8	56.8
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of total assets measured at fair value on a recurring basis	4,328.2	4,075.3
Fair value of total liabilities measured at fair value on a recurring basis	109.5	97.0
Level 2 [Member] | Fixed Income Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	5.1	6.0
Level 2 [Member] | GSE Residential Mortgage-Backed Securities and CMOs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	4,164.7	3,936.7
Level 2 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0.2	0.2
Level 2 [Member] | Interest Rate Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	157.0	131.1
Fair Values, Liabilities	108.5	95.8
Level 2 [Member] | Foreign Exchange Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	0.6	0.8
Fair Values, Liabilities	0.2	0.5
Level 2 [Member] | Forward Commitments to Sell Residential Mortgage Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	0.6	0.5
Level 2 [Member] | Interest Rate-Lock Commitments on Residential Mortgage Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Liabilities	$ 0.8	$ 0.7

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Fair Value Measurements - Assets Measured at Fair Value on Non-Recurring Basis (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	$ 34.5	$ 34.2
Impaired loans	49.1	66.5
REO and repossessed assets	22.1	27.1
Total assets measured at fair value on non-recurring basis	105.7	127.8
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	34.5	34.2
Total assets measured at fair value on non-recurring basis	34.5	34.2
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	49.1	66.5
REO and repossessed assets	22.1	27.1
Total assets measured at fair value on non-recurring basis	$ 71.2	$ 93.6

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Fair Value Measurements - Assets Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 49,100,000				$ 66,500,000				$ 49,100,000	$ 66,500,000
Charge-offs to the allowance for loan losses related to loans	9,700,000	$ 6,200,000	$ 7,700,000	$ 9,800,000	9,900,000	$ 12,400,000	$ 8,800,000	$ 9,500,000	33,400,000	40,600,000	$ 43,700,000
Repossessed assets	9,500,000				2,500,000				9,500,000	2,500,000
Write downs and net loss on sale of foreclosed/repossessed assets charged to non-interest expense total	217,000,000	$ 214,200,000	$ 211,800,000	$ 217,600,000	207,700,000	$ 208,800,000	$ 208,300,000	$ 216,700,000	860,600,000	841,500,000	839,000,000
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Charge-offs to the allowance for loan losses related to loans									6,700,000	10,900,000
REO and Repossessed Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Charge-offs to the allowance for loan losses related to loans									1,800,000	1,200,000
Write Down Net Loss on Sale of Foreclosed Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Write downs and net loss on sale of foreclosed/repossessed assets charged to non-interest expense total									2,800,000	5,100,000
Retail Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	16,100,000								16,100,000
Charge-offs to the allowance for loan losses related to loans									7,900,000	8,200,000	$ 13,300,000
Residential Mortgage Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value adjustments									0	0
Real estate owned	7,100,000				13,600,000				7,100,000	13,600,000
Residential Mortgage Loan [Member] | Retail Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	14,000,000				15,300,000				14,000,000	15,300,000
Commercial Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	33,000,000								33,000,000
Commercial Real Estate Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate owned	$ 5,500,000				$ 11,000,000				$ 5,500,000	$ 11,000,000

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Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	$ 334.8	$ 345.1
Short-term investments	380.5	668.6
Securities held to maturity	1,609.6	834.3
FHLB and FRB stock	305.4	175.7
Time deposits	4,818.1	5,230.7
FHLB advances	3,463.8	2,291.7	$ 3,719.8
Customer repurchase agreements	469.5	486.0	501.2
Federal funds purchased	374.0	913.0	$ 825.0
Notes and debentures	1,038.7	1,033.5
Securities purchased under agreements to resell		100.0
Commercial Customers [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Customer repurchase agreements	469.5	486.0
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	334.8	345.1
Short-term investments	380.5	668.6
Securities held to maturity	1,609.6	834.3
FHLB and FRB stock	305.4
Total loans, net	28,150.8	26,327.2
Time deposits	4,818.1	5,230.7
Other deposits	23,599.3	20,907.5
FHLB advances	3,463.8	2,291.7
Federal funds purchased	374.0	913.0
Notes and debentures	1,038.7	1,033.5
Securities purchased under agreements to resell		100.0
FHLB stock		175.7
Carrying Amount [Member] | Commercial Customers [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Customer repurchase agreements	469.5	486.0
Carrying Amount [Member] | Institutional Counterparties [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Customer repurchase agreements		1.0
Estimated Fair Value Measurements [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	334.8	345.1
Short-term investments	380.5	668.6
Securities held to maturity	1,662.5	881.6
FHLB and FRB stock	305.4
Total loans, net	28,209.0	26,307.3
Time deposits	4,836.5	5,262.6
Other deposits	23,599.3	20,907.5
FHLB advances	3,468.7	2,298.5
Federal funds purchased	374.0	913.0
Notes and debentures	1,012.9	1,040.8
Securities purchased under agreements to resell		100.0
FHLB stock		175.7
Estimated Fair Value Measurements [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	334.8	345.1
Estimated Fair Value Measurements [Member] | Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	380.5	668.6
Securities held to maturity	1,661.0	880.1
FHLB and FRB stock	305.4
Total loans, net	5,315.3	4,798.5
Time deposits	4,836.5	5,262.6
Other deposits	23,599.3	20,907.5
FHLB advances	3,468.7	2,298.5
Federal funds purchased	374.0	913.0
Notes and debentures	1,012.9	1,040.8
Securities purchased under agreements to resell		100.0
FHLB stock		175.7
Estimated Fair Value Measurements [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities held to maturity	1.5	1.5
Total loans, net	22,893.7	21,508.8
Estimated Fair Value Measurements [Member] | Commercial Customers [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Customer repurchase agreements	469.5	486.0
Estimated Fair Value Measurements [Member] | Commercial Customers [Member] | Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Customer repurchase agreements	$ 469.5	486.0
Estimated Fair Value Measurements [Member] | Institutional Counterparties [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Customer repurchase agreements		1.0
Estimated Fair Value Measurements [Member] | Institutional Counterparties [Member] | Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Customer repurchase agreements		$ 1.0

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Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Impaired loans	$ 49.1	$ 66.5

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Legal Proceedings and Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
2016	$ 56.5
2017	55.2
2018	50.2
2019	46.5
2020	42.8
2021 through 2054	140.0
Rent expense under operating leases	$ 58.9	$ 59.1	$ 58.1

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Financial Instruments - Summary of Contractual or Notional Amounts of Financial Instruments (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Commercial [Member]
Derivative Instruments And Hedging Activities [Line Items]
Loan origination commitments and unadvanced of credit	$ 3,578,000,000	$ 3,337,200,000
Consumer [Member]
Derivative Instruments And Hedging Activities [Line Items]
Loan origination commitments and unadvanced of credit	2,558,400,000	2,455,900,000
Commercial Real Estate [Member]
Derivative Instruments And Hedging Activities [Line Items]
Loan origination commitments and unadvanced of credit	831,000,000	880,100,000
Residential Mortgage [Member]
Derivative Instruments And Hedging Activities [Line Items]
Loan origination commitments and unadvanced of credit	93,300,000	111,800,000
Forward Commitments to Sell Residential Mortgage Loans [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Financial Instruments	44,700,000	35,300,000
Interest Rate-Lock Commitments on Residential Mortgage Loans [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Financial Instruments	65,400,000	57,500,000
Stand-By Letters of Credit [Member]
Derivative Instruments And Hedging Activities [Line Items]
Lending-Related Financial Instruments	121,500,000	148,300,000
Commercial Letters of Credit [Member]
Derivative Instruments And Hedging Activities [Line Items]
Lending-Related Financial Instruments	3,400,000	3,200,000
Interest Rate Swaps [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Financial Instruments	125,000,000
Interest Rate Swaps [Member] | Subordinated Notes [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Financial Instruments	500,000,000	500,000,000
Interest Rate Swaps [Member] | Customer [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Financial Instruments	4,644,800,000	3,380,200,000
Interest Rate Swaps [Member] | Counterparty [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Financial Instruments	4,644,800,000	3,380,200,000
Risk Participation Agreements [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Financial Instruments	244,400,000	150,100,000
Foreign Exchange Contracts [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Financial Instruments	$ 56,700,000	$ 49,600,000

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Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative [Line Items]
Average period extended for letter of credit		1 year
Loan commitments and letters of credit		$ 2,500,000	$ 2,500,000
Aggregate fair value of derivative instruments		8,800,000
Collateral posted in normal course of business		8,300,000
Additional collateral required if senior unsecured debt had fallen below investment grade		500,000
Subordinated notes		$ 125,000,000
Subordinated notes fixed interest rate		5.80%
Unrealized gain on derivatives		$ (1,100,000)	(900,000)	$ 700,000
Subordinated Notes [Member]
Derivative [Line Items]
LIBOR basis points		Three-month LIBOR
Basis points		0.685%
Interest Rate Swaps [Member]
Derivative [Line Items]
Derivative; fixed-rate (Pay fixed/receive floating interest Interest rate swap)		1.99%
Notional amount of derivatives		$ 125,000,000
Interest Rate Swaps [Member] | Subordinated Notes [Member]
Derivative [Line Items]
Notional amount of derivatives		500,000,000	$ 500,000,000
Interest Rate Swaps [Member] | Fair Value [Member]
Derivative [Line Items]
Subordinated notes		$ 400,000,000
LIBOR basis points		Three-month LIBOR
Basis points		1.265%
Notional amount of derivatives		$ 375,000,000
Treasury Forward Interest Rate Locks ("T-Locks") [Member]
Derivative [Line Items]
Derivative instruments hedge description		To hedge the risk that the 10-year U.S. Treasury yield would rise
Unrealized gain on derivatives	$ 900,000
Period hedged items affected earnings, years	10 years
Total unrecognized gain		$ 100,000
Treasury Forward Interest Rate Locks ("T-Locks") [Member] | Subordinated Notes [Member]
Derivative [Line Items]
Senior notes issuance		$ 500,000,000

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Financial Instruments - Schedule of Notional Amounts and Fair Values of Derivatives Outstanding (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Forward commitments to sell residential mortgage loans	$ 139,300,000	$ 117,300,000
Total, Derivatives Designated as Hedging Instruments, Fair Values, Assets	18,900,000	15,100,000
Total Derivatives Fair value,Assets	158,200,000	132,400,000
Total, Derivatives Not Designated as Hedging Instruments, Fair Values, Liabilities	108,900,000	96,000,000
Total, Derivatives Designated as Hedging Instruments, Fair Values, Liabilities	600,000	1,000,000
Fair Values, Liabilities	109,500,000	97,000,000
Interest Rate-Lock Commitments on Residential Mortgage Loans [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	65,400,000	57,500,000
Derivatives Not Designated as Hedging Instruments, Foreign exchange contracts, Fair Values, Liabilities	800,000	700,000
Fair Values, Liabilities	800,000	700,000
Forward Commitments to Sell Residential Mortgage Loans [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	44,700,000	35,300,000
Forward commitments to sell residential mortgage loans	600,000	500,000
Risk Participation Agreements [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	244,400,000	150,100,000
Interest Rate Swaps [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	125,000,000
Interest Rate Swaps [Member] | Fair Value [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	375,000,000
Interest Rate Swaps [Member] | Commercial Customers [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	4,644,800,000	3,380,200,000
Derivatives Not Designated as Hedging Instruments, Interest rate swaps, Fair Values, Assets	130,900,000	104,200,000
Derivatives Not Designated as Hedging Instruments, Foreign exchange contracts, Fair Values, Liabilities	2,600,000	8,300,000
Interest Rate Swaps [Member] | Institutional Counterparties [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	4,644,800,000	3,380,200,000
Derivatives Not Designated as Hedging Instruments, Interest rate swaps, Fair Values, Assets	7,200,000	11,800,000
Derivatives Not Designated as Hedging Instruments, Foreign exchange contracts, Fair Values, Liabilities	105,300,000	86,500,000
Interest Rate Swaps [Member] | Subordinated Notes [Member] | Cash Flow [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	125,000,000	125,000,000
Derivative Assets Designated as Hedging Instruments, Fair Values, Assets	0	0
Total, Derivatives Designated as Hedging Instruments, Fair Values, Liabilities	600,000	1,000,000
Interest Rate Swaps [Member] | Subordinated Notes [Member] | Fair Value [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	375,000,000	375,000,000
Derivative Assets Designated as Hedging Instruments, Fair Values, Assets	18,900,000	15,100,000
Total, Derivatives Designated as Hedging Instruments, Fair Values, Liabilities	0	0
Foreign Exchange Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	56,700,000	49,600,000
Derivatives Not Designated as Hedging Instruments, Foreign exchange contracts, Fair Values, Assets	600,000	800,000
Total Derivatives Fair value,Assets	600,000	800,000
Derivatives Not Designated as Hedging Instruments, Interest rate swaps, Fair Values, Liabilities	200,000	500,000
Fair Values, Liabilities	$ 200,000	$ 500,000

XML

Financial Instruments - Schedule of Notional Amounts and Fair Values of Derivatives Outstanding (Parenthetical) (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Derivatives Not Designated as Hedging Instruments [Member] | Maximum [Member] | Risk Participation Agreements [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives, Net	$ 100,000	$ 100,000

XML

Financial Instruments - Impact of Derivatives on Pre-Tax Income and Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	$ 22.6	$ 12.8	$ 10.2
Amount of Pre-Tax Gain (Loss) Recognized in AOCL	(1.1)	(0.9)	0.7
Derivatives Not Designated as Hedging Instruments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	14.5	8.9	11.4
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate-Lock Commitments on Residential Mortgage Loans [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	(0.1)	(0.5)	3.5
Derivatives Not Designated as Hedging Instruments [Member] | Forward Commitments to Sell Residential Mortgage Loans [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	0.1	0.4	(2.9)
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | Commercial Customers [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	104.8	165.4	(54.2)
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | Institutional Counterparties [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	(90.3)	(156.9)	64.7
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	0.2	0.4	0.1
Derivatives Not Designated as Hedging Instruments [Member] | Risk Participation Agreements [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	(0.2)	0.1	0.2
Derivatives Designated as Hedging Instruments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	8.1	3.9	(1.2)
Amount of Pre-Tax Gain (Loss) Recognized in AOCL	(1.1)	(0.9)	0.7
Derivatives Designated as Hedging Instruments [Member] | Cash Flow [Member] | Interest Rate-Lock Commitments on Residential Mortgage Loans [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	0.1	0.1	0.1
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | Cash Flow [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	(1.3)	(1.4)	(1.3)
Amount of Pre-Tax Gain (Loss) Recognized in AOCL	(1.1)	(0.9)	$ 0.7
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | Fair Value [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	$ 9.3	$ 5.2

XML

Balance Sheet Offsetting - Summary of Gross Presentation, Financial Instruments that are Eligible for Offset in Consolidated Statement of Condition (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Offsetting Assets And Liabilities [Line Items]
Financial liabilities, Gross Amount Recognized	$ 106.1
Financial liabilities, Gross Amount Offset	0.0
Financial liabilities, Net Amount Presented	106.1
Financial liabilities, Financial Instruments	(25.9)
Financial liabilities, Collateral	(79.1)
Financial liabilities, Net Amount	1.1
Financial assets, Gross Amount Recognized	26.6	$ 127.7
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	26.6	127.7
Financial assets, Financial Instruments	(25.9)	(24.1)
Financial assets, Collateral		(102.8)
Financial assets, Net Amount	0.7	0.8
Financial assets, Gross Amount Recognized	158.2	132.4
Financial liabilities, Gross Amount Recognized	109.5	97.0
Financial assets, Gross Amount Recognized		100.0
Financial assets, Gross Amount Offset		0.0
Financial assets, Net Amount Presented		100.0
Financial assets, Financial Instruments		0.0
Financial assets, Collateral		(100.0)
Financial assets, Net Amount		0.0
Financial liabilities, Net Amount Presented	469.5	486.0	$ 501.2
Securities Sold under Agreements to Repurchase [Member]
Offsetting Assets And Liabilities [Line Items]
Financial liabilities, Gross Amount Recognized		1.0
Financial liabilities, Gross Amount Offset		0.0
Financial liabilities, Net Amount Presented		1.0
Financial liabilities, Financial Instruments		0.0
Financial liabilities, Collateral		(1.0)
Financial liabilities, Net Amount		0.0
Foreign Exchange Contracts [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	0.6	0.8
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	0.6	0.8
Financial assets, Net Amount	0.6	0.8
Financial liabilities, Gross Amount Recognized	0.2	0.5
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	0.2	0.5
Financial liabilities, Net Amount	0.2	0.5
Counterparty A [Member] | Interest Rate Swaps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	0.6	2.7
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	0.6	2.7
Financial assets, Financial Instruments	(0.6)	(2.7)
Financial liabilities, Gross Amount Recognized	8.4	11.8
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	8.4	11.8
Financial liabilities, Financial Instruments	(0.6)	(2.7)
Financial liabilities, Collateral	(7.8)	(9.1)
Counterparty B [Member] | Interest Rate Swaps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	0.7	1.5
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	0.7	1.5
Financial assets, Financial Instruments	(0.7)	(1.5)
Financial liabilities, Gross Amount Recognized	10.4	11.8
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	10.4	11.8
Financial liabilities, Financial Instruments	(0.7)	(1.5)
Financial liabilities, Collateral	(9.7)	(10.3)
Counterparty C [Member] | Interest Rate Swaps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	0.6	2.5
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	0.6	2.5
Financial assets, Financial Instruments	(0.6)	(2.5)
Financial liabilities, Gross Amount Recognized	5.1	4.5
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	5.1	4.5
Financial liabilities, Financial Instruments	(0.6)	(2.5)
Financial liabilities, Collateral	(4.5)	(1.9)
Financial liabilities, Net Amount		0.1
Counterparty D [Member] | Interest Rate Swaps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	0.7	3.2
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	0.7	3.2
Financial assets, Financial Instruments	(0.7)	(0.4)
Financial assets, Collateral		(2.8)
Financial liabilities, Gross Amount Recognized	8.9	0.4
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	8.9	0.4
Financial liabilities, Financial Instruments	(0.7)	(0.4)
Financial liabilities, Collateral	(7.3)
Financial liabilities, Net Amount	0.9
Counterparty E [Member] | Interest Rate Swaps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	22.6	15.7
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	22.6	15.7
Financial assets, Financial Instruments	(22.6)	(15.7)
Financial liabilities, Gross Amount Recognized	69.5	47.8
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	69.5	47.8
Financial liabilities, Financial Instruments	(22.6)	(15.7)
Financial liabilities, Collateral	(46.9)	(32.1)
Other Counterparties [Member] | Interest Rate Swaps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	0.8	1.3
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	0.8	1.3
Financial assets, Financial Instruments	(0.7)	(1.3)
Financial assets, Net Amount	0.1
Financial liabilities, Gross Amount Recognized	3.6	11.2
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	3.6	11.2
Financial liabilities, Financial Instruments	(0.7)	(1.3)
Financial liabilities, Collateral	$ (2.9)	(8.9)
Financial liabilities, Net Amount		$ 1.0

XML

Segment Information - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) Segment	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Segment Reporting [Abstract]
Number of primary operating segments | Segment	3
Number of operating reportable segments | Segment	2
Other one-time charges | $	$ 12.9	$ 9.5	$ 12.7
Other non-recurring income | $	$ 9.2	$ 20.6

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Segment Information - Selected Financial Information Business Segments (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Net interest income (loss)	$ 238.8	$ 234.8	$ 230.4	$ 228.1	$ 228.1	$ 228.5	$ 228.2	$ 227.1	$ 932.1	$ 911.9	$ 888.6
Provision for loan losses									33.4	40.6	43.7
Total non-interest income	93.3	87.1	83.0	89.0	86.8	84.0	100.1	79.9	352.4	350.8	341.7
Total non-interest expense	217.0	214.2	211.8	217.6	207.7	208.8	208.3	216.7	860.6	841.5	839.0
Income (loss) before income tax expense (benefit)									390.5	380.6	347.6
Income tax expense (benefit)	34.6	33.1	32.2	30.5	32.6	29.7	38.9	27.7	130.4	128.9	115.2
Net income	$ 70.8	$ 68.4	$ 61.7	$ 59.2	$ 64.7	$ 61.6	$ 72.3	$ 53.1	260.1	251.7	232.4
Average total assets									36,894.0	33,752.8	31,008.9
Average total liabilities									32,196.7	29,127.4	26,254.1
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net interest income (loss)									896.2	924.0	944.0
Provision for loan losses									62.9	64.4	62.3
Total non-interest income									331.7	308.8	324.2
Total non-interest expense									833.4	803.7	798.6
Income (loss) before income tax expense (benefit)									331.6	364.7	407.3
Income tax expense (benefit)									110.9	123.4	135.0
Net income									220.7	241.3	272.3
Average total assets									29,943.8	27,853.3	25,352.9
Average total liabilities									24,719.0	23,384.3	22,524.1
Operating Segments [Member] | Commercial Banking Loan [Member]
Segment Reporting Information [Line Items]
Net interest income (loss)									551.6	516.0	487.7
Provision for loan losses									47.7	47.6	47.3
Total non-interest income									162.0	141.4	143.3
Total non-interest expense									313.2	275.7	247.4
Income (loss) before income tax expense (benefit)									352.7	334.1	336.3
Income tax expense (benefit)									117.9	113.1	111.4
Net income									234.8	221.0	224.9
Average total assets									21,465.7	19,338.5	16,979.5
Average total liabilities									5,483.2	4,275.1	3,459.7
Operating Segments [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Net interest income (loss)									344.6	408.0	456.3
Provision for loan losses									15.2	16.8	15.0
Total non-interest income									169.7	167.4	180.9
Total non-interest expense									520.2	528.0	551.2
Income (loss) before income tax expense (benefit)									(21.1)	30.6	71.0
Income tax expense (benefit)									(7.0)	10.3	23.6
Net income									(14.1)	20.3	47.4
Average total assets									8,478.1	8,514.8	8,373.4
Average total liabilities									19,235.8	19,109.2	19,064.4
Treasury [Member]
Segment Reporting Information [Line Items]
Net interest income (loss)									64.4	10.7	(46.6)
Total non-interest income									11.1	12.4	7.2
Total non-interest expense									6.9	6.2	(1.4)
Income (loss) before income tax expense (benefit)									68.6	16.9	(38.0)
Income tax expense (benefit)									22.9	5.8	(12.6)
Net income									45.7	11.1	(25.4)
Average total assets									6,405.5	5,266.7	5,021.1
Average total liabilities									7,194.4	5,423.0	3,352.3
Other [Member]
Segment Reporting Information [Line Items]
Net interest income (loss)									(28.5)	(22.8)	(8.8)
Provision for loan losses									(29.5)	(23.8)	(18.6)
Total non-interest income									9.6	29.6	10.3
Total non-interest expense									20.3	31.6	41.8
Income (loss) before income tax expense (benefit)									(9.7)	(1.0)	(21.7)
Income tax expense (benefit)									(3.4)	(0.3)	(7.2)
Net income									(6.3)	(0.7)	(14.5)
Average total assets									544.7	632.8	634.9
Average total liabilities									$ 283.3	$ 320.1	$ 377.7

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Parent Company Financial Information - Condensed Statements of Condition (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets:
Cash at bank subsidiary	$ 334.8	$ 345.1
Short-term investments	380.5	668.6
Total cash and cash equivalents	715.3	1,013.7	$ 474.4	$ 601.4
Securities available for sale, at fair value	4,527.7	3,993.7
Goodwill	1,958.7	1,954.5
Other assets	786.2	719.9
Total assets	38,877.4	35,997.1
Liabilities and Stockholders' Equity:
Notes and debentures	1,038.7	1,033.5
Other liabilities	382.4	500.6
Stockholders' equity	4,731.6	4,633.1	4,568.4	5,038.8
Total liabilities and stockholders' equity	38,877.4	35,997.1
People's United Financial, Inc. [Member]
Assets:
Cash at bank subsidiary	170.2	3.1
Short-term investments		1.2
Total cash and cash equivalents	170.2	4.3	$ 21.9	$ 7.4
Securities available for sale, at fair value	201.4	0.2
Advances to bank subsidiary	100.0	410.0
Goodwill	197.1	197.1
Other assets	39.3	34.2
Total assets	5,358.0	5,264.5
Liabilities and Stockholders' Equity:
Notes and debentures	622.5	621.1
Other liabilities	3.9	10.3
Stockholders' equity	4,731.6	4,633.1
Total liabilities and stockholders' equity	5,358.0	5,264.5
People's United Financial, Inc. [Member] | Bank Subsidiary [Member]
Assets:
Bank subsidiary	4,649.2	4,618.3
People's United Financial, Inc. [Member] | Non Bank Subsidiary [Member]
Assets:
Bank subsidiary	$ 0.8	$ 0.4

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Parent Company Financial Information - Condensed Statements of Income (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Advances to bank subsidiary									$ 945.6	$ 932.6	$ 912.9
Securities									121.5	96.8	89.7
Total interest and dividend income	$ 274.2	$ 269.9	$ 264.5	$ 260.3	$ 259.6	$ 258.9	$ 256.7	$ 255.4	1,068.9	1,030.6	1,004.4
Dividend from bank subsidiary									245.0	244.0	232.0
Security gain										3.0
Other non-interest income									38.9	33.5	36.9
Expenses:
Interest on notes and debentures									29.8	26.7	24.2
Non-interest expense	217.0	214.2	211.8	217.6	207.7	208.8	208.3	216.7	860.6	841.5	839.0
Income before income tax benefit and subsidiaries undistributed income									390.5	380.6	347.6
Income tax benefit	34.6	33.1	32.2	30.5	32.6	29.7	38.9	27.7	130.4	128.9	115.2
Net income	$ 70.8	$ 68.4	$ 61.7	$ 59.2	$ 64.7	$ 61.6	$ 72.3	$ 53.1	260.1	251.7	232.4
People's United Financial, Inc. [Member]
Revenues:
Advances to bank subsidiary									4.4	4.4	4.1
Securities									1.1	0.4	0.3
Total interest and dividend income									5.5	4.8	4.4
Dividend from bank subsidiary									245.0	244.0	232.0
Security gain										2.3
Other non-interest income									4.2	1.2	2.0
Total revenues									254.7	252.3	238.4
Expenses:
Interest on notes and debentures									22.5	22.4	23.0
Non-interest expense									2.8	6.1	6.8
Total expenses									25.3	28.5	29.8
Income before income tax benefit and subsidiaries undistributed income									229.4	223.8	208.6
Income tax benefit									(5.5)	(6.6)	(7.4)
Income before subsidiaries undistributed income									234.9	230.4	216.0
Subsidiaries undistributed income									25.2	21.3	16.4
Net income									$ 260.1	$ 251.7	$ 232.4

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Parent Company Financial Information - Condensed Statements of Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Net income	$ 70.8	$ 68.4	$ 61.7	$ 59.2	$ 64.7	$ 61.6	$ 72.3	$ 53.1	$ 260.1	$ 251.7	$ 232.4
Other comprehensive (loss), net of tax:
Net unrealized losses on securities available for sale									(14.0)	42.8	(99.3)
Net unrealized gains on derivatives accounted for as cash flow hedges									0.1	0.2	1.2
Current period other comprehensive income (loss)									(9.0)	(13.1)	(58.2)
Total comprehensive income									251.1	238.6	174.2
People's United Financial, Inc. [Member]
Condensed Financial Statements, Captions [Line Items]
Net income									260.1	251.7	232.4
Other comprehensive (loss), net of tax:
Net unrealized losses on securities available for sale									(0.4)		(0.2)
Net unrealized gains on derivatives accounted for as cash flow hedges									0.2	0.2	1.2
Other comprehensive loss of bank subsidiary									(8.8)	(13.3)	(59.2)
Current period other comprehensive income (loss)									(9.0)	(13.1)	(58.2)
Total comprehensive income									$ 251.1	$ 238.6	$ 174.2

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Parent Company Financial Information - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash Flows from Operating Activities:
Net income	$ 70.8	$ 68.4	$ 61.7	$ 59.2	$ 64.7	$ 61.6	$ 72.3	$ 53.1	$ 260.1	$ 251.7	$ 232.4
Security gain										(3.0)
Net change in other assets and other liabilities									(92.6)	(37.2)	(75.0)
Net cash provided by operating activities									328.3	350.0	379.4
Cash Flows from Investing Activities:
Proceeds from principal repayments and maturities of securities available for sale									821.4	686.7	938.5
Proceeds from sale of security available for sale									305.9	539.2
Purchases of securities available for sale									(1,766.4)	(879.8)	(1,373.8)
Net cash used in investing activities									(3,347.2)	(2,210.3)	(3,302.7)
Cash Flows from Financing Activities:
Repayment of notes and debentures										(19.0)	(20.6)
Cash dividends paid on common stock									(201.2)	(196.9)	(204.8)
Common stock repurchases									(3.2)	(3.0)	(461.1)
Proceeds from stock options exercised, including excess income tax benefits									27.5	6.0	2.4
Net cash provided by financing activities									2,720.5	2,399.6	2,796.3
Net increase (decrease) in cash and cash equivalents									(298.4)	539.3	(127.0)
Cash and cash equivalents at beginning of year				1,013.7				474.4	1,013.7	474.4	601.4
Cash and cash equivalents at end of year	715.3				1,013.7				715.3	1,013.7	474.4
People's United Financial, Inc. [Member]
Cash Flows from Operating Activities:
Net income									260.1	251.7	232.4
Subsidiaries undistributed income									(25.2)	(21.3)	(16.4)
Security gain										(2.3)
Net change in other assets and other liabilities									(0.4)	0.2	(2.4)
Net cash provided by operating activities									234.5	228.3	213.6
Cash Flows from Investing Activities:
Proceeds from principal repayments and maturities of securities available for sale									1.2
Proceeds from sale of security available for sale										5.0
Purchases of securities available for sale									(202.9)
Decrease (increase) in advances to bank subsidiary									310.0	(57.0)	485.0
Net cash used in investing activities									108.3	(52.0)	485.0
Cash Flows from Financing Activities:
Repayment of notes and debentures											(20.6)
Cash dividends paid on common stock									(201.2)	(196.9)	(204.8)
Common stock repurchases									(3.2)	(3.0)	(461.1)
Proceeds from stock options exercised, including excess income tax benefits									27.5	6.0	2.4
Net cash provided by financing activities									(176.9)	(193.9)	(684.1)
Net increase (decrease) in cash and cash equivalents									165.9	(17.6)	14.5
Cash and cash equivalents at beginning of year				$ 4.3				$ 21.9	4.3	21.9	7.4
Cash and cash equivalents at end of year	$ 170.2				$ 4.3				$ 170.2	$ 4.3	$ 21.9

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Selected Quarterly Financial Data - Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information [Line Items]
Interest and dividend income	$ 274.2	$ 269.9	$ 264.5	$ 260.3	$ 259.6	$ 258.9	$ 256.7	$ 255.4	$ 1,068.9	$ 1,030.6	$ 1,004.4
Interest expense	35.4	35.1	34.1	32.2	31.5	30.4	28.5	28.3	136.8	118.7	115.8
Net interest income	238.8	234.8	230.4	228.1	228.1	228.5	228.2	227.1	932.1	911.9	888.6
Provision for loan losses	9.7	6.2	7.7	9.8	9.9	12.4	8.8	9.5	33.4	40.6	43.7
Net interest income after provision for loan losses	229.1	228.6	222.7	218.3	218.2	216.1	219.4	217.6	898.7	871.3	844.9
Non-interest income	93.3	87.1	83.0	89.0	86.8	84.0	100.1	79.9	352.4	350.8	341.7
Non-interest expense	217.0	214.2	211.8	217.6	207.7	208.8	208.3	216.7	860.6	841.5	839.0
Income before income tax expense	105.4	101.5	93.9	89.7	97.3	91.3	111.2	80.8	390.5	380.6	347.6
Income tax expense	34.6	33.1	32.2	30.5	32.6	29.7	38.9	27.7	130.4	128.9	115.2
Net income	$ 70.8	$ 68.4	$ 61.7	$ 59.2	$ 64.7	$ 61.6	$ 72.3	$ 53.1	$ 260.1	$ 251.7	$ 232.4
Basic EPS	$ 0.23	$ 0.23	$ 0.20	$ 0.20	$ 0.22	$ 0.21	$ 0.24	$ 0.18	$ 0.86	$ 0.84	$ 0.74
Diluted EPS	$ 0.23	$ 0.23	$ 0.20	$ 0.20	$ 0.22	$ 0.21	$ 0.24	$ 0.18	$ 0.86	$ 0.84	$ 0.74
Basic	301,380	301,000	300,090	299,150	298,630	298,420	298,220	297,690	300,400	298,200	311,900
Diluted	301,380	301,000	300,090	299,150	298,650	298,440	298,240	297,720	300,400	298,300	312,000
Dividends paid	$ 50.6	$ 50.6	$ 50.5	$ 49.5	$ 49.5	$ 49.4	$ 49.4	$ 48.6
Dividends per share	$ 0.1675	$ 0.1675	$ 0.1675	$ 0.1650	$ 0.1650	$ 0.1650	$ 0.1650	$ 0.1625	$ 0.1675	$ 0.1650
Dividend payout ratio	71.50%	73.90%	81.80%	83.70%	76.50%	80.20%	68.40%	91.50%	77.30%	78.20%	88.10%
Maximum [Member]
Quarterly Financial Information [Line Items]
Common stock price	$ 16.93	$ 16.95	$ 16.64	$ 15.45	$ 15.50	$ 15.32	$ 15.23	$ 15.70	$ 16.93	$ 15.50
Minimum [Member]
Quarterly Financial Information [Line Items]
Common stock price	$ 15.00	$ 14.69	$ 14.92	$ 13.97	$ 13.61	$ 14.24	$ 14.00	$ 13.73	$ 15.00	$ 13.61