10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

Commission File Number 001-33326

PEOPLE’S UNITED FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

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)	(Zip Code)

(203) 338-7171

(Registrant’s telephone number, including area code)

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  ☒    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  ☒    No  ☐

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

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐  (Do not check if a smaller reporting company)	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

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

As of October 31, 2017, there were 346,251,605 shares of the registrant’s common stock outstanding.

People’s United Financial Inc.

Form 10-Q

Table of Contents

		Page
Part I – Financial Information
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Condition as of September  30, 2017 and December 31, 2016		1
	Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2017 and 2016		2
	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2017 and 2016		3
	Consolidated Statements of Changes in Stockholders’ Equity for the Nine Months Ended September 30, 2017 and 2016		4
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016		5
	Notes to Consolidated Financial Statements		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		63
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		108
Item 4.	Controls and Procedures		108
Part II – Other Information
Item 1.	Legal Proceedings		109
Item 1A.	Risk Factors		109
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		109
Item 3.	Defaults Upon Senior Securities		109
Item 4.	Mine Safety Disclosures		109
Item 5.	Other Information		110
Item 6.	Exhibits		110
Index to Exhibits			111
Signatures			112

Part 1 - Financial Information

Item 1 - Financial Statements

People’s United Financial, Inc.

Consolidated Statements of Condition - (Unaudited)

(in millions)	September 30, 2017			December 31, 2016
Assets
Cash and due from banks	$	414.1		$	432.4
Short-term investments (note 3)		302.5			181.7
Total cash and cash equivalents		716.6			614.1
Securities (note 3):
Trading account securities, at fair value		8.3			6.8
Securities available for sale, at fair value		3,197.5			4,409.9
Securities held to maturity, at amortized cost (fair value of $3.44 billion and $2.01 billion)		3,387.6			2,005.4
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		320.9			315.8
Total securities		6,914.3			6,737.9
Loans held for sale		15.0			39.3
Loans (note 4):
Commercial real estate		11,180.5			10,247.3
Commercial and industrial		8,624.7			8,125.1
Equipment financing		3,705.6			3,032.5
Total Commercial Portfolio		23,510.8			21,404.9
Residential mortgage		6,781.0			6,216.7
Home equity and other consumer		2,092.7			2,123.3
Total Retail Portfolio		8,873.7			8,340.0
Total loans		32,384.5			29,744.9
Less allowance for loan losses		(233.4	)		(229.3	)
Total loans, net		32,151.1			29,515.6
Goodwill (note 7)		2,411.4			1,992.7
Bank-owned life insurance		405.6			349.1
Premises and equipment, net		264.7			244.5
Other acquisition-related intangible assets (note 7)		156.5			149.4
Other assets (notes 1, 4 and 12)		963.0			967.2
Total assets	$	43,998.2		$	40,609.8
Liabilities
Deposits:
Non-interest-bearing	$	7,655.3		$	6,660.8
Savings		4,513.1			4,397.7
Interest-bearing checking and money market		15,143.1			14,260.1
Time		5,235.8			4,542.2
Total deposits		32,547.3			29,860.8
Borrowings:
Federal Home Loan Bank advances		3,074.1			3,061.1
Federal funds purchased		543.0			617.0
Customer repurchase agreements		295.8			343.3
Other borrowings		231.1			35.4
Total borrowings		4,144.0			4,056.8
Notes and debentures		906.2			1,030.1
Other liabilities (notes 1 and 12)		654.6			520.2
Total liabilities		38,252.1			35,467.9
Commitments and contingencies (notes 1 and 9)
Stockholders’ Equity (notes 2, 5 and 8)
Preferred stock ($0.01 par value; 50.0 million shares authorized; 10.0 million shares issued and outstanding at both dates)		244.1			244.1
Common stock ($0.01 par value; 1.95 billion shares authorized; 433.6 million shares and 405.0 million shares issued)		4.3			4.0
Additional paid-in capital		5,972.2			5,446.1
Retained earnings		996.4			949.3
Unallocated common stock of Employee Stock Ownership Plan, at cost (6.7 million shares and 7.0 million shares)		(139.1	)		(144.6	)
Accumulated other comprehensive loss		(169.7	)		(195.0	)
Treasury stock, at cost (89.0 million shares and 89.1 million shares)		(1,162.1	)		(1,162.0	)
Total stockholders’ equity		5,746.1			5,141.9
Total liabilities and stockholders’ equity	$	43,998.2		$	40,609.8

See accompanying notes to consolidated financial statements.    

1

People’s United Financial, Inc.

Consolidated Statements of Income - (Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per common share data)	2017		2016		2017			2016
Interest and dividend income:
Commercial real estate	$	105.6	$	85.7	$	299.5		$	257.8
Commercial and industrial		80.0		66.9		218.7			190.0
Equipment financing		41.5		32.8		104.6			99.1
Residential mortgage		52.5		45.7		154.1			133.4
Home equity and other consumer		21.0		18.4		59.3			55.4
Total interest on loans		300.6		249.5		836.2			735.7
Securities		37.2		34.2		112.1			103.4
Short-term investments		1.1		0.4		2.7			1.1
Loans held for sale		0.3		0.4		0.7			0.8
Total interest and dividend income		339.2		284.5		951.7			841.0
Interest expense:
Deposits		34.4		25.2		92.4			75.8
Borrowings		12.7		6.1		28.9			16.4
Notes and debentures		7.5		7.9		22.3			23.4
Total interest expense		54.6		39.2		143.6			115.6
Net interest income		284.6		245.3		808.1			725.4
Provision for loan losses (note 4)		7.0		8.4		18.5			28.9
Net interest income after provision for loan losses		277.6		236.9		789.6			696.5
Non-interest income:
Bank service charges		25.3		25.3		73.8			73.8
Investment management fees		16.9		11.6		49.2			34.1
Operating lease income		10.9		11.2		32.1			31.7
Commercial banking lending fees		7.0		7.1		26.7			24.4
Insurance revenue		9.7		9.8		26.3			26.1
Cash management fees		6.8		6.5		19.6			18.8
Brokerage commissions		2.8		3.2		9.2			9.4
Net gains on sales of residential mortgage loans		1.1		1.9		2.7			3.7
Net security (losses) gains (note 3)		—		—		(15.6	)		0.1
Other non-interest income		8.8		14.2		41.6			36.4
Total non-interest income		89.3		90.8		265.6			258.5
Non-interest expense (note 2):
Compensation and benefits		128.0		116.1		383.6			341.6
Occupancy and equipment		40.2		37.7		118.6			112.6
Professional and outside services		19.2		17.7		62.8			51.5
Regulatory assessments		10.3		9.9		29.8			27.1
Operating lease expense		8.8		9.7		26.3			28.0
Amortization of other acquisition-related intangible assets (note 7)		7.9		5.8		22.1			17.4
Other non-interest expense		22.7		24.5		77.3			73.4
Total non-interest expense		237.1		221.4		720.5			651.6
Income before income tax expense		129.8		106.3		334.7			303.4
Income tax expense (notes 1 and 14)		39.0		32.6		103.8			98.3
Net income		90.8		73.7		230.9			205.1
Preferred stock dividend		3.5		—		10.5			—
Net income available to common shareholders	$	87.3	$	73.7	$	220.4		$	205.1
Earnings per common share (note 6):
Basic	$	0.26	$	0.24	$	0.67		$	0.68
Diluted		0.26		0.24		0.67			0.68

See accompanying notes to consolidated financial statements.

2

People’s United Financial, Inc.

Consolidated Statements of Comprehensive Income - (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Net income	$	90.8		$	73.7		$	230.9		$	205.1
Other comprehensive income (loss), net of tax:
Net actuarial loss and prior service credit related to pension and other postretirement plans		0.9			0.9			2.8			2.8
Net unrealized gains and losses on securities available for sale		3.6			(1.7	)		21.0			52.3
Amortization of unrealized losses on securities transferred to held to maturity		0.6			0.5			1.6			1.5
Net unrealized gains and losses on derivatives accounted for as cash flow hedges		(0.2	)		0.2			(0.1	)		0.2
Total other comprehensive income (loss), net of tax (note 5)		4.9			(0.1	)		25.3			56.8
Total comprehensive income	$	95.7		$	73.6		$	256.2		$	261.9

See accompanying notes to consolidated financial statements.

3

People’s United Financial, Inc.

Consolidated Statements of Changes in Stockholders’ Equity - (Unaudited)

Nine months ended September 30, 2017 (in millions, except per share common data)	Preferred Stock		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, 2016	$	244.1	$	4.0	$	5,446.1	$	949.3		$	(144.6	)	$	(195.0	)	$	(1,162.0	)	$	5,141.9
Net income		—		—		—		230.9			—			—			—			230.9
Total other comprehensive income, net of tax (note 5)		—		—		—		—			—			25.3			—			25.3
Common stock issued in Suffolk Bancorp acquisition (note 2)		—		0.2		484.6		—			—			—			—			484.8
Cash dividends on common stock ($0.5150 per share)		—		—		—		(169.3	)		—			—			—			(169.3	)
Cash dividends on preferred stock		—		—		—		(10.5	)		—			—			—			(10.5	)
Restricted stock and performance-based share awards		—		—		9.1		—			—			—			(0.1	)		9.0
Employee Stock Ownership Plan common committed to be released (note 8)		—		—		—		(0.7	)		5.5			—			—			4.8
Common stock repurchased and retired upon vesting of restricted stock awards		—		—		—		(3.3	)		—			—			—			(3.3	)
Stock option exercises		—		0.1		32.4		—			—			—			—			32.5
Balance at September 30, 2017	$	244.1	$	4.3	$	5,972.2	$	996.4		$	(139.1	)	$	(169.7	)	$	(1,162.1	)	$	5,746.1
Nine months ended September 30, 2016 (in millions, except per common share data)	Preferred Stock		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, 2015	$	—	$	3.9	$	5,337.7	$	880.8		$	(151.8	)	$	(177.2	)	$	(1,161.8	)	$	4,731.6
Net income		—		—		—		205.1			—			—			—			205.1
Total other comprehensive income, net of tax (note 5)		—		—		—		—			—			56.8			—			56.8
Cash dividends on common stock ($0.5075 per share)		—		—		—		(154.1	)		—			—			—			(154.1	)
Restricted stock and performance-based share awards		—		—		7.1		0.1			—			—			(0.2	)		7.0
Employee Stock Ownership Plan common committed to be released (note 8)		—		—		—		(1.4	)		5.4			—			—			4.0
Common stock repurchased and retired upon vesting of restricted stock awards		—		—		—		(3.2	)		—			—			—			(3.2	)
Stock option exercises and related tax benefits		—		0.1		15.0		—			—			—			—			15.1
Balance at September 30, 2016	$	—	$	4.0	$	5,359.8	$	927.3		$	(146.4	)	$	(120.4	)	$	(1,162.0	)	$	4,862.3

See accompanying notes to consolidated financial statements.    

4

People’s United Financial, Inc.

Consolidated Statements of Cash Flows - (Unaudited)

	Nine Months Ended September 30,
(in millions)	2017			2016
Cash Flows from Operating Activities:
Net income	$	230.9		$	205.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment		29.3			27.6
Expense related to operating leases		26.3			28.0
Amortization of other acquisition-related intangible assets		22.1			17.4
Provision for loan losses		18.5			28.9
Expense related to share-based awards		13.4			11.4
Employee Stock Ownership Plan common stock committed to be released		4.8			4.0
Net security losses (gains)		15.6			(0.1	)
Net gains on sales of residential mortgage loans		(2.7	)		(3.7	)
Originations of loans held-for-sale		(212.5	)		(296.1	)
Proceeds from sales of loans held-for-sale		239.5			287.8
Net increase in trading account securities		(1.5	)		(0.1	)
Excess income tax benefits from stock option exercises (note 14)		1.3			—
Net changes in other assets and other liabilities		15.3			(23.8	)
Net cash provided by operating activities		400.3			286.4
Cash Flows from Investing Activities:
Proceeds from principal repayments and maturities of securities available for sale		456.1			680.2
Proceeds from sales of securities available for sale		1,016.2			249.9
Proceeds from principal repayments and maturities of securities held to maturity		92.1			83.6
Purchases of securities available for sale		(237.6	)		(1,228.3	)
Purchases of securities held to maturity		(1,235.9	)		(286.8	)
Net redemptions (purchases) of Federal Reserve Bank stock		17.6			(9.1	)
Net purchases of Federal Home Loan Bank stock		(19.9	)		(1.0	)
Proceeds from sales of loans		8.4			2.8
Loan disbursements, net of principal collections		(325.4	)		(944.8	)
Purchases of loans		—			(30.6	)
Purchases of premises and equipment		(6.7	)		(14.9	)
Purchases of leased equipment		(20.5	)		(14.3	)
Proceeds from sales of real estate owned		8.6			8.0
Return of premium on bank-owned life insurance, net		1.7			1.7
Net cash acquired in acquisitions		28.9			—
Net cash used in investing activities		(216.4	)		(1,503.6	)
Cash Flows from Financing Activities:
Net increase in deposits		834.1			1,238.1
Net (decrease) increase in borrowings with terms of three months or less		(279.4	)		131.2
Repayments of borrowings with terms of more than three months		(356.1	)		(0.2	)
Repayment of notes and debentures		(125.0	)		—
Cash dividends paid on common stock		(169.3	)		(154.1	)
Cash dividends paid on preferred stock		(10.5	)		—
Common stock repurchases		(3.3	)		(3.2	)
Proceeds from stock options exercised		28.1			10.4
Net cash (used in) provided by financing activities		(81.4	)		1,222.2
Net increase in cash and cash equivalents		102.5			5.0
Cash and cash equivalents at beginning of period		614.1			715.3
Cash and cash equivalents at end of period	$	716.6		$	720.3
Supplemental Information:
Interest payments	$	138.4		$	114.3
Unsettled purchases of securities		110.5			9.7
Income tax payments		100.1			86.1
Real estate properties acquired by foreclosure		9.3			17.9
Assets acquired and liabilities assumed in acquisitions (note 2):
Non-cash assets, excluding goodwill and other acquisition-related intangibles		2,642.1			—
Liabilities		2,634.1			—
Common stock issued in Suffolk Bancorp acquisition		484.8			—

See accompanying notes to consolidated financial statements.    

5

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

NOTE 1. GENERAL

In the opinion of management, the accompanying unaudited consolidated financial statements of People’s United Financial, Inc. (“People’s United” or the “Company”) have been prepared to reflect all adjustments necessary to present fairly the financial position and results of operations as of the dates and for the periods shown. All significant intercompany transactions and balances are eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period 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 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.

Note 1 to People’s United’s audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2016, as supplemented by the Quarterly Reports for the periods ended March 31, 2017 and June 30, 2017 and this Quarterly Report for the period ended September 30, 2017, provides disclosure of People’s United’s significant accounting policies.

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 (“VIEs”), are not consolidated into the Company’s Consolidated Financial Statements. These investments have historically played a role in enabling People’s United Bank, National Association (the “Bank”) to meet its Community Reinvestment Act requirements while, at the same time, providing federal income tax credits.

Affordable housing investments, including all legally binding commitments to fund future investments, are included in other assets in the Consolidated Statements of Condition ($250.0 million and $195.2 million at September 30, 2017 and December 31, 2016, respectively). Included in other liabilities in the Consolidated Statements of Condition is a liability for all legally binding unfunded commitments to fund future investments ($109.6 million and $92.5 million at those dates). 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 $4.2 million and $3.0 million for the three months ended September 30, 2017 and 2016, respectively, and $12.3 million and $8.9 million for the nine months ended September 30, 2017 and 2016, respectively.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) have been omitted or condensed. As a result, the accompanying consolidated financial statements should be read in conjunction with People’s United’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results of operations that may be expected for the entire year or any other interim period.

6

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

NOTE 2 – ACQUISITIONS

LEAF Commercial Capital, Inc.

Effective August 1, 2017, the Bank completed its acquisition of LEAF Commercial Capital, Inc. (“LEAF”) a Philadelphia-based commercial equipment finance company. The fair value of the consideration transferred in the LEAF acquisition consisted of approximately $220 million in cash.

The assets acquired and liabilities assumed in this transaction were recorded by People’s United at their estimated fair values as of the effective date and People’s United’s results of operations for the three and nine months ended September 30, 2017 include the results of LEAF beginning with the effective date. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded as goodwill, which was allocated to the Commercial Banking segment. Merger-related expenses recorded during the nine months ended September 30, 2017 related to the LEAF acquisition totaled $2.2 million, including fees for investment advisory, legal and valuation services.

The acquisition-date estimated fair values of the assets acquired and liabilities assumed in the acquisition of LEAF are summarized as follows:

(in millions)
Assets:
Cash and cash equivalents	$	74.9
Loans		717.9
Goodwill		148.4
Trade name intangible		0.9
Premises and equipment		2.4
Non-compete agreement		0.2
Other assets		13.0
Total assets	$	957.7
Liabilities:
Borrowings	$	708.1
Other liabilities		29.6
Total liabilities	$	737.7
Total purchase price	$	220.0

Prior to the acquisition, and in connection with its previous revolving warehouse debt facilities and term note securitization transactions, LEAF established bankruptcy-remote special-purpose entities (“SPEs”) that issued term debt to institutional investors. These SPEs were VIEs, of which LEAF was deemed the primary beneficiary, and, therefore, the related financings were treated as secured borrowings with the SPEs consolidated in LEAF’s financial statements. Following the Company’s acquisition of LEAF, approximately $460 million of LEAF’s borrowings were repaid prior to September 30, 2017, including all but one remaining securitization, which can be repaid without penalty in 2018.

Net deferred tax assets totaling $3.9 million were established in connection with recording the related purchase accounting adjustments (other than goodwill). Fair value adjustments to assets acquired (other than loans, see Note 4) and liabilities assumed are generally amortized on a straight-line basis over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities.

7

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

Suffolk Bancorp

Effective April 1, 2017, People’s United completed its acquisition of Suffolk Bancorp (“Suffolk”) based in Riverhead, New York. The fair value of the consideration transferred in the Suffolk acquisition totaled approximately $485 million and consisted of approximately 26.6 million shares of People’s United common stock. At the acquisition date, Suffolk operated 27 branches in the greater Long Island area.

The assets acquired and liabilities assumed in this transaction were recorded by People’s United at their estimated fair values as of the effective date and People’s United’s results of operations for the nine months ended September 30, 2017 include the results of Suffolk beginning with the effective date. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded as goodwill, which was allocated to the Commercial Banking and Retail Banking segments. Merger-related expenses recorded during the nine months ended September 30, 2017 and 2016 related to the Suffolk acquisition totaled $26.5 million and $1.9 million, respectively, including: (i) fees for investment advisory, legal, accounting and valuation services; (ii) costs associated with contract terminations and branch closings; and (iii) compensatory charges.

The acquisition-date estimated fair values of the assets acquired and liabilities assumed in the acquisition of Suffolk are summarized as follows:

(in millions)
Assets:
Cash and cash equivalents	$	174.0
Securities		167.4
Loans		1,617.5
Goodwill		270.3
Core deposit intangible		28.1
Premises and equipment		40.4
Bank-owned life insurance		54.1
Other real estate owned		0.5
Other assets		28.9
Total assets	$	2,381.2
Liabilities:
Deposits	$	1,852.4
Borrowings		15.1
Other liabilities		28.9
Total liabilities	$	1,896.4
Total purchase price	$	484.8

Net deferred tax liabilities totaling $0.3 million were established in connection with recording the related purchase accounting adjustments (other than goodwill). Fair value adjustments to assets acquired (other than loans, see Note 4) and liabilities assumed are generally amortized on a straight-line basis over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities.

The preceding summaries include adjustments to record the acquired assets and assumed liabilities at their respective fair values based on management’s best estimate using the information available at the time of the respective acquisition. While there may be changes in the respective acquisition-date fair values of certain balance sheet amounts and other items, management does not expect that such changes, if any, will be material.

8

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

Fair values of the major categories of assets acquired and liabilities assumed were determined as follows:

Cash and Cash Equivalents

The fair values of cash and cash equivalents approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities.

Securities

The fair values of securities acquired were based on quoted market prices. If a quoted market price for a certain security was not available, then a quoted price for a similar security in active markets was used to estimate fair value.

Loans

Loans acquired in connection with these acquisitions were recorded at fair value with no carryover of either LEAF’s or Suffolk’s previously established allowance for loan losses. Fair value of the loans was 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 flow. The acquired loans were evaluated upon the respective acquisition dates and classified as either purchased performing or purchased credit impaired (“PCI”) (see Note 4).

In the aggregate, loans totaling $57 million were deemed PCI and were recorded at a discount from the corresponding outstanding principal balance of $67 million. The remaining acquired loans were deemed purchased performing and had a fair value of $2.28 billion and an outstanding principal balance of $2.32 billion, resulting in a discount that will be accreted over the remaining lives of the loans. Included in the Consolidated Statements of Income for the nine months ended September 30, 2017 is approximately $44 million of interest income attributable to these acquisitions since the respective acquisition dates.

Core Deposit Intangible

The core deposit intangible represents the value of the relationships with deposit customers. The fair value was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance costs of the deposit base, the alternative cost of funds and the interest cost associated with customer deposits. The core deposit intangible will be amortized using an accelerated amortization method over a 6-year period, reflective of the manner in which the related benefit attributable to the deposits will be recognized.

Deposits

The fair values of acquired savings and transaction deposit accounts were assumed to approximate the respective carrying amounts as these accounts have no stated maturity and are payable on demand. Time deposits were valued based on the present value of the contractual cash flows over the remaining period to maturity using a market rate.

Borrowings

The fair values of Federal Home Loan Bank (“FHLB”) advances and other borrowings, including securitizations, represent contractual repayments discounted using interest rates currently available on borrowings with similar characteristics and remaining maturities.

9

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

The following table presents selected unaudited pro forma financial information of the Company reflecting the acquisitions of Suffolk and LEAF assuming the acquisitions were completed as of the beginning of the respective periods:

	Nine Months Ended September 30,
(in millions, except per common share data)	2017		2016
Selected Financial Results:
Net interest income	$	835.9	$	797.3
Provision for loan losses		18.5		28.9
Non-interest income		275.5		275.5
Non-interest expense		720.6		707.1
Net income		258.0		227.7
Net income applicable to common shareholders		247.5		227.7
Basic and diluted earnings per common share	$	0.73	$	0.69

The selected unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the acquisitions actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year period. Merger-related expenses attributable to the acquisitions that were incurred by People’s United, Suffolk and LEAF during the nine months ended September 30, 2017 and 2016 are not reflected in the selected unaudited pro forma financial information. Pro forma basic and diluted earnings per common share (“EPS”) were calculated using People’s United’s actual weighted-average common shares outstanding for the periods presented, plus the incremental common shares issued, assuming the acquisitions occurred at the beginning of the periods presented.

Recent 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 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 (see Note 7).

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 September 30, 2017 and December 31, 2016, tax deductible goodwill totaled $73.2 million and $77.9 million, respectively.

10

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

NOTE 3. SECURITIES AND SHORT-TERM INVESTMENTS

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 September 30, 2017 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	760.9	$	0.1	$	(19.1	)	$	741.9
GSE (1) mortgage-backed securities and CMOs (2)		2,450.1		11.5		(15.0	)		2,446.6
Total debt securities		3,211.0		11.6		(34.1	)		3,188.5
Equity securities (3)		9.6		—		(0.6	)		9.0
Total securities available for sale	$	3,220.6	$	11.6	$	(34.7	)	$	3,197.5
Securities held to maturity:
Debt securities:
State and municipal	$	1,999.2	$	60.7	$	(8.5	)	$	2,051.4
GSE mortgage-backed securities		1,344.6		1.5		(6.5	)		1,339.6
Corporate		42.3		0.8		—			43.1
Other		1.5		—		—			1.5
Total securities held to maturity	$	3,387.6	$	63.0	$	(15.0	)	$	3,435.6

(1) Government sponsored enterprise

(2) Collateralized mortgage obligations

(3) During the quarter ended March 31, 2017, the Company exchanged its ownership interest in a non-marketable equity security (previously recorded in other assets) for cash and common stock in a publicly-traded company (fair value of approximately $10.8 million at acquisition).

As of December 31, 2016 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	889.9	$	0.3	$	(30.5	)	$	859.7
GSE mortgage-backed securities and CMOs		3,573.1		15.0		(38.1	)		3,550.0
Total debt securities		4,463.0		15.3		(68.6	)		4,409.7
Equity securities		0.2		—		—			0.2
Total securities available for sale	$	4,463.2	$	15.3	$	(68.6	)	$	4,409.9
Securities held to maturity:
Debt securities:
State and municipal	$	1,499.1	$	33.9	$	(23.5	)	$	1,509.5
GSE mortgage-backed securities		500.8		—		(3.2	)		497.6
Corporate		4.0		—		—			4.0
Other		1.5		—		—			1.5
Total securities held to maturity	$	2,005.4	$	33.9	$	(26.7	)	$	2,012.6

11

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

Securities available for sale with a fair value of $2.92 billion and $1.83 billion at September 30, 2017 and December 31, 2016, respectively, were pledged as collateral for public deposits and for other purposes.

The following table is a summary of the amortized cost and fair value of debt securities as of September 30, 2017, based on remaining period to contractual maturity. Information for GSE mortgage-backed securities and CMOs is based on the final contractual maturity dates without considering repayments and prepayments.

	Available for Sale				Held to Maturity
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Treasury and agency:
Within 1 year	$	1.0	$	1.0	$	—	$	—
After 1 but within 5 years		361.3		355.0		—		—
After 5 but within 10 years		398.6		385.9		—		—
Total		760.9		741.9		—		—
GSE mortgage-backed securities and CMOs:
After 1 but within 5 years		—		—		69.4		69.4
After 5 but within 10 years		604.6		613.9		834.3		830.4
After 10 years		1,845.5		1,832.7		440.9		439.8
Total		2,450.1		2,446.6		1,344.6		1,339.6
State and municipal:
Within 1 year		—		—		18.7		18.7
After 1 but within 5 years		—		—		114.1		117.4
After 5 but within 10 years		—		—		343.2		363.2
After 10 years		—		—		1,523.2		1,552.1
Total		—		—		1,999.2		2,051.4
Corporate:
After 1 but within 5 years		—		—		5.0		5.0
After 5 but within 10 years		—		—		37.3		38.1
Total		—		—		42.3		43.1
Other:
After 1 but within 5 years		—		—		1.5		1.5
Total		—		—		1.5		1.5
Total:
Within 1 year		1.0		1.0		18.7		18.7
After 1 but within 5 years		361.3		355.0		190.0		193.3
After 5 but within 10 years		1,003.2		999.8		1,214.8		1,231.7
After 10 years		1,845.5		1,832.7		1,964.1		1,991.9
Total	$	3,211.0	$	3,188.5	$	3,387.6	$	3,435.6

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.

12

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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 of the issuer. 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.

The following tables summarize those 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 September 30, 2017 (in millions)	Fair Value		Unrealized Losses			Fair   Value		Unrealized   Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE mortgage-backed securities and CMOs	$	1,675.6	$	(12.1	)	$	133.9	$	(2.9	)	$	1,809.5	$	(15.0	)
U.S. Treasury and agency		206.6		(3.0	)		530.1		(16.1	)		736.7		(19.1	)
Equity securities		9.0		(0.6	)		—		—			9.0		(0.6	)
Securities held to maturity:
GSE mortgage-backed securities		1,029.5		(6.5	)		—		—			1,029.5		(6.5	)
State and municipal		270.3		(1.7	)		207.5		(6.8	)		477.8		(8.5	)
Corporate		2.8		—			—		—			2.8		—
Total	$	3,193.8	$	(23.9	)	$	871.5	$	(25.8	)	$	4,065.3	$	(49.7	)

	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months Or Longer					Total
As of December 31, 2016 (in millions)	Fair Value		Unrealized Losses			Fair   Value		Unrealized   Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE mortgage-backed securities and CMOs	$	2,339.6	$	(26.6	)	$	396.9	$	(11.5	)	$	2,736.5	$	(38.1	)
U.S. Treasury and agency		828.3		(30.5	)		—		—			828.3		(30.5	)
Securities held to maturity:
GSE mortgage-backed securities		497.6		(3.2	)		—		—			497.6		(3.2	)
State and municipal		581.7		(23.5	)		—		—			581.7		(23.5	)
Total	$	4,247.2	$	(83.8	)	$	396.9	$	(11.5	)	$	4,644.1	$	(95.3	)

At September 30, 2017, approximately 27% of the 2,046 securities owned by the Company, consisting of 96 securities classified as available for sale and 453 securities classified as held to maturity, had gross unrealized losses totaling $34.7 million and $15.0 million, respectively. All of the GSE mortgage-backed securities and CMOs had AAA credit ratings and an average contractual maturity of 11 years. The state and municipal securities had an average credit rating of AA and an average maturity of 12 years.

The cause of the gross unrealized losses with respect to all of these securities is directly related to changes in interest rates. At this time, management does not intend to sell such securities nor is it more likely than not, based upon available evidence, that management will be required to sell such securities prior to recovery. As such, management believes that all gross unrealized losses within the securities portfolio at September 30, 2017 are temporary impairments. No other-than-temporary impairment losses were recognized in the Consolidated Statements of Income for the three or nine months ended September 30, 2017 or 2016.

13

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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. During the quarter ended March 31, 2017, People’s United sold U.S. Treasury and CMO securities with a combined amortized cost of $487 million and recorded $15.7 million of gross realized losses.

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 $139.5 million and $155.0 million at September 30, 2017 and December 31, 2016, 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 prior acquisitions, the Bank acquired shares of capital stock in the FHLB of New York (total cost of $12.0 million and $11.3 million at September 30, 2017 and December 31, 2016, respectively). 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 September 30, 2017 and the cost of the investment approximates fair value.

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”) (total cost of $169.4 million and $149.5 million at September 30, 2017 and December 31, 2016, respectively) in an amount equal to 6% of its capital and surplus. 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 September 30, 2017 and the cost of the investment approximates fair value.

Included in short-term investments are interest-bearing deposits at the FRB-NY totaling $259.4 million at September 30, 2017 and $169.8 million at December 31, 2016. These deposits represent an alternative to overnight federal funds sold and had yields of 1.25% and 0.75% at September 30, 2017 and December 31, 2016, respectively.

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’). 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.

People’s United maintains several significant accounting policies with respect to loans, including:

• Establishment of the allowance for loan losses (including the identification of ‘impaired’ loans and related impairment measurement considerations);

• Income recognition (including the classification of a loan as ‘non-accrual’ and the treatment of loan origination costs); and

• Recognition of loan charge-offs.

14

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

The Company did not change its application of the accounting policies noted above or its methodology for determining the allowance for loan losses during the nine months ended September 30, 2017.

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

	September 30, 2017						December 31, 2016
(in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Commercial:
Commercial real estate	$	10,194.1	$	986.4	$	11,180.5	$	10,012.6	$	234.7	$	10,247.3
Commercial and industrial		7,971.3		653.4		8,624.7		7,939.0		186.1		8,125.1
Equipment financing		3,039.1		666.5		3,705.6		3,020.9		11.6		3,032.5
Total Commercial Portfolio		21,204.5		2,306.3		23,510.8		20,972.5		432.4		21,404.9
Retail:
Residential mortgage:
Adjustable-rate		5,800.9		147.5		5,948.4		5,453.8		95.3		5,549.1
Fixed-rate		706.7		125.9		832.6		613.5		54.1		667.6
Total residential mortgage		6,507.6		273.4		6,781.0		6,067.3		149.4		6,216.7
Home equity and other consumer:
Home equity		1,981.8		59.7		2,041.5		2,044.9		27.7		2,072.6
Other consumer		47.3		3.9		51.2		50.0		0.7		50.7
Total home equity and other consumer		2,029.1		63.6		2,092.7		2,094.9		28.4		2,123.3
Total Retail Portfolio		8,536.7		337.0		8,873.7		8,162.2		177.8		8,340.0
Total loans	$	29,741.2	$	2,643.3	$	32,384.5	$	29,134.7	$	610.2	$	29,744.9

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. Net deferred loan costs, which are included in loans by respective class and accounted for as interest yield adjustments, totaled $73.1 million at September 30, 2017 and $69.9 million at December 31, 2016.

15

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

The following tables present a summary, by loan portfolio segment, of activity in the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016. 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.

Three months ended	Commercial									Retail
September 30, 2017 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	198.3		$	3.6		$	201.9		$	29.6		$	0.1	$	29.7		$	231.6
Charge-offs		(4.0	)		(1.0	)		(5.0	)		(1.8	)		—		(1.8	)		(6.8	)
Recoveries		0.9			0.1			1.0			0.6			—		0.6			1.6
Net loan charge-offs		(3.1	)		(0.9	)		(4.0	)		(1.2	)		—		(1.2	)		(5.2	)
Provision for loan losses		4.3			1.3			5.6			1.3			0.1		1.4			7.0
Balance at end of period	$	199.5		$	4.0		$	203.5		$	29.7		$	0.2	$	29.9		$	233.4
Nine months ended	Commercial									Retail
September 30, 2017 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	198.8		$	6.1		$	204.9		$	24.2		$	0.2	$	24.4		$	229.3
Charge-offs		(12.0	)		(2.9	)		(14.9	)		(5.1	)		—		(5.1	)		(20.0	)
Recoveries		3.8			0.1			3.9			1.7			—		1.7			5.6
Net loan charge-offs		(8.2	)		(2.8	)		(11.0	)		(3.4	)		—		(3.4	)		(14.4	)
Provision for loan losses		8.9			0.7			9.6			8.9			—		8.9			18.5
Balance at end of period	$	199.5		$	4.0		$	203.5		$	29.7		$	0.2	$	29.9		$	233.4
Three months ended	Commercial									Retail
September 30, 2016 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	189.7		$	7.2		$	196.9		$	23.3		$	0.2	$	23.5		$	220.4
Charge-offs		(2.7	)		(0.1	)		(2.8	)		(1.1	)		—		(1.1	)		(3.9	)
Recoveries		0.9			—			0.9			0.5			—		0.5			1.4
Net loan charge-offs		(1.8	)		(0.1	)		(1.9	)		(0.6	)		—		(0.6	)		(2.5	)
Provision for loan losses		7.1			—			7.1			1.3			—		1.3			8.4
Balance at end of period	$	195.0		$	7.1		$	202.1		$	24.0		$	0.2	$	24.2		$	226.3
Nine months ended	Commercial									Retail
September 30, 2016 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	181.8		$	7.9		$	189.7		$	21.1		$	0.2	$	21.3		$	211.0
Charge-offs		(10.7	)		(0.4	)		(11.1	)		(6.6	)		—		(6.6	)		(17.7	)
Recoveries		1.6			—			1.6			2.5			—		2.5			4.1
Net loan charge-offs		(9.1	)		(0.4	)		(9.5	)		(4.1	)		—		(4.1	)		(13.6	)
Provision for loan losses		22.3			(0.4	)		21.9			7.0			—		7.0			28.9
Balance at end of period	$	195.0		$	7.1		$	202.1		$	24.0		$	0.2	$	24.2		$	226.3

16

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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

	Originated Loans				Originated Loans
As of	Individually Evaluated				Collectively Evaluated
September 30, 2017	for Impairment				for Impairment				Acquired Loans (1)				Total
(in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	172.5	$	5.7	$	21,032.0	$	193.8	$	2,306.3	$	4.0	$	23,510.8	$	203.5
Retail		94.3		2.4		8,442.4		27.3		337.0		0.2		8,873.7		29.9
Total	$	266.8	$	8.1	$	29,474.4	$	221.1	$	2,643.3	$	4.2	$	32,384.5	$	233.4
	Originated Loans				Originated Loans
As of	Individually Evaluated				Collectively Evaluated
December 31, 2016	for Impairment				for Impairment				Acquired Loans (1)				Total
(in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	161.8	$	5.8	$	20,810.7	$	193.0	$	432.4	$	6.1	$	21,404.9	$	204.9
Retail		91.8		3.2		8,070.4		21.0		177.8		0.2		8,340.0		24.4
Total	$	253.6	$	9.0	$	28,881.1	$	214.0	$	610.2	$	6.3	$	29,744.9	$	229.3

(1) Approximately $3.8 million of the allowance at September 30, 2017 relates to Commercial and Retail PCI loans totaling $406.5 million and $134.7 million, respectively. The remainder of the acquired portfolio represents purchased performing loans with an allowance of approximately $0.4 million at that date. The allowance at December 31, 2016 relates entirely to PCI loans (no acquired loans were purchased performing at that date).

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

	September 30,		December 31,
(in millions)	2017		2016
Commercial:
Commercial real estate	$	36.7	$	22.3
Commercial and industrial		34.9		41.5
Equipment financing		54.1		39.4
Total (1)		125.7		103.2
Retail:
Residential mortgage		33.8		27.4
Home equity		14.8		17.4
Other consumer		—		—
Total (2)		48.6		44.8
Total	$	174.3	$	148.0

(1) Reported net of government guarantees totaling $4.0 million and $13.1 million at September 30, 2017 and December 31, 2016, 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 September 30, 2017, the principal loan classes to which these government guarantees relate are commercial and industrial loans (95%) and commercial real estate loans (5%).

(2) Includes $17.8 million and $9.8 million of loans in the process of foreclosure at September 30, 2017 and December 31, 2016, respectively.

17

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

The preceding table excludes acquired loans that are (i) accounted for as PCI loans or (ii) covered by a Federal Deposit Insurance Corporation (“FDIC”) loss-share agreement (“LSA”) totaling $24.5 million and $24.7 million at September 30, 2017 and December 31, 2016, respectively. 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. Accordingly, such 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. In addition, the table excludes purchased performing loans totaling $2.1 million at September 30, 2017, of which $0.5 million became non-performing subsequent to acquisition.

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 September 30, 2017 or December 31, 2016.

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 loans whose terms have been modified in such a way that they are considered troubled debt restructurings (“TDRs”). 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.

18

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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 (see further discussion under ‘Acquired Loans’).

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.

People’s United’s recorded investment in loans classified as TDRs totaled $194.4 million and $189.9 million at September 30, 2017 and December 31, 2016, respectively. The related allowance for loan losses was $4.6 million at September 30, 2017 and $4.2 million at December 31, 2016. Interest income recognized on TDRs totaled $1.4 million and $1.2 million for the three months ended September 30, 2017 and 2016, respectively, and $3.7 million and $3.3 million for the nine months ended September 30, 2017 and 2016, respectively. Fundings under commitments to lend additional amounts to borrowers with loans classified as TDRs were immaterial for the three and nine months ended September 30, 2017 and 2016. Loans that were modified and classified as TDRs during the three and nine months ended September 30, 2017 and 2016 principally involve reduced payment and/or payment deferral, extension of term (generally no more than two years for commercial loans and five years for retail loans) and/or a temporary reduction of interest rate (generally less than 200 basis points).

19

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

The following tables summarize, by class of loan, the recorded investments in loans modified as TDRs during the three and nine months ended September 30, 2017 and 2016. For purposes of this disclosure, recorded investments represent amounts immediately prior to and subsequent to the restructuring.

	Three Months Ended September 30, 2017
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number		Recorded		Recorded
(dollars in millions)	of Contracts		Investment		Investment
Commercial:
Commercial real estate (1)		1	$	0.1	$	0.1
Commercial and industrial (2)		9		11.6		11.6
Equipment financing (3)		13		8.1		8.1
Total		23		19.8		19.8
Retail:
Residential mortgage (4)		17		3.8		3.8
Home equity (5)		19		1.5		1.5
Other consumer		—		—		—
Total		36		5.3		5.3
Total		59	$	25.1	$	25.1

(1) Represents the following concession: extension of term (1 contract; recorded investment of $0.1 million).

(2) Represents the following concessions: extension of term (9 contracts; recorded investment of $11.6 million).

(3) Represents the following concessions: reduced payment and/or payment deferral (12 contracts; recorded investment of $8.0 million); or a combination of concessions (1 contract; recorded investment of $0.1 million).

(4) Represents the following concessions: loans restructured through bankruptcy (9 contracts; recorded investment of $1.7 million); reduced payment and/or payment deferral (5 contract; recorded investment of $1.7 million); or a combination of concessions (3 contracts; recorded investment of $0.4 million).

(5) Represents the following concessions: loans restructured through bankruptcy (10 contracts; recorded investment of $1.0 million); reduced payment and/or payment deferral (4 contracts; recorded investment of $0.3 million); or a combination of concessions (5 contracts; recorded investment of $0.2 million).

20

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

	Nine Months Ended September 30, 2017
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		8	$	5.3	$	5.3
Commercial and industrial (2)		28		39.6		39.6
Equipment financing (3)		54		25.1		25.1
Total		90		70.0		70.0
Retail:
Residential mortgage (4)		45		10.8		10.8
Home equity (5)		65		4.5		4.5
Other consumer		—		—		—
Total		110		15.3		15.3
Total		200	$	85.3	$	85.3

(1) Represents the following concessions: extension of term (5 contracts; recorded investment of $1.4 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $2.2 million); or a temporary rate reduction (1 contract; recorded investment of $1.7 million).

(2) Represents the following concessions: extension of term (25 contracts; recorded investment of $29.9 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $9.4 million); or a combination of concessions (1 contract; recorded investment of $0.3 million).

(3) Represents the following concessions: reduced payment and/or payment deferral (28 contracts; recorded investment of $17.4 million); or a combination of concessions (26 contracts; recorded investment of $7.7 million).

(4) Represents the following concessions: loans restructured through bankruptcy (28 contracts; recorded investment of $4.2 million); reduced payment and/or payment deferral (10 contracts; recorded investment of $3.4 million); or a combination of concessions (7 contracts; recorded investment of $3.2 million).

(5) Represents the following concessions: loans restructured through bankruptcy (41 contracts; recorded investment of $2.6 million); reduced payment and/or payment deferral (10 contracts; recorded investment of $0.8 million); or a combination of concessions (14 contracts; recorded investment of $1.1 million).

21

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

	Three Months Ended September 30, 2016
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		7	$	22.1	$	22.1
Commercial and industrial (2)		11		4.5		4.5
Equipment financing (3)		22		10.4		10.4
Total		40		37.0		37.0
Retail:
Residential mortgage (4)		9		2.9		2.9
Home equity (5)		17		1.2		1.2
Other consumer		—		—		—
Total		26		4.1		4.1
Total		66	$	41.1	$	41.1

(1) Represents the following concessions: extension of term (5 contracts; recorded investment of $3.3 million); reduced payment and/or payment deferral (1 contract; recorded investment of $1.7 million); or a combination of concessions (1 contract; recorded investment of $17.1 million).

(2) Represents the following concessions: extension of term (9 contracts; recorded investment of $4.1 million); or reduced payment and/or payment deferral (2 contracts; recorded investment of $0.4 million).

(3) Represents the following concessions: extension of term (6 contracts; recorded investment of $4.3 million); reduced payment and/or payment deferral (13 contracts; recorded investment of $4.7 million); or a combination of concessions (3 contracts; recorded investment of $1.4 million).

(4) Represents the following concessions: loans restructured through bankruptcy (6 contracts; recorded investment of $1.0 million); reduced payment and/or payment deferral (1 contract; recorded investment of $0.7 million); or a combination of concessions (2 contracts; recorded investment of $1.2 million).

(5) Represents the following concessions: loans restructured through bankruptcy (11 contracts; recorded investment of $0.5 million); reduced payment and/or payment deferral (1 contract; recorded investment of $0.2 million); or a combination of concessions (5 contracts; recorded investment of $0.5 million).

22

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

	Nine Months Ended September 30, 2016
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		12	$	25.9	$	25.9
Commercial and industrial (2)		36		22.9		22.9
Equipment financing (3)		49		21.7		21.7
Total		97		70.5		70.5
Retail:
Residential mortgage (4)		47		13.1		13.1
Home equity (5)		50		3.8		3.8
Other consumer		—		—		—
Total		97		16.9		16.9
Total		194	$	87.4	$	87.4

(1) Represents the following concessions: extension of term (8 contracts; recorded investment of $6.2 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $2.6 million); or a combination of concessions (2 contracts; recorded investment of $17.1 million).

(2) Represents the following concessions: extension of term (23 contracts; recorded investment of $12.3 million); reduced payment and/or payment deferral (9 contracts; recorded investment of $9.8 million); or a combination of concessions (4 contracts; recorded investment of $0.8 million).

(3) Represents the following concessions: extension of term (17 contracts; recorded investment of $6.3 million); reduced payment and/or payment deferral (25 contracts; recorded investment of $12.5 million); or a combination of concessions (7 contracts; recorded investment of $2.9 million).

(4) Represents the following concessions: loans restructured through bankruptcy (18 contracts; recorded investment of $3.2 million); reduced payment and/or payment deferral (11 contracts; recorded investment of $5.5 million); or a combination of concessions (18 contracts; recorded investment of $4.4 million).

(5) Represents the following concessions: loans restructured through bankruptcy (31 contracts; recorded investment of $2.1 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $0.3 million); or a combination of concessions (17 contracts; recorded investment of $1.4 million).

23

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

The following is a summary, by class of loan, of information related to TDRs completed within the previous 12 months that subsequently defaulted during the three and nine months ended September 30, 2017 and 2016. For purposes of this disclosure, the previous 12 months is measured from October 1 of the respective prior year and a default represents a previously-modified loan that became past due 30 days or more during the three or nine months ended September 30, 2017 or 2016.

	Three Months Ended September 30,
	2017				2016
(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		—	$	—		—	$	—
Commercial and industrial		1		0.1		—		—
Equipment financing		8		4.2		14		2.2
Total		9		4.3		14		2.2
Retail:
Residential mortgage		2		0.9		3		0.6
Home equity		5		0.8		—		—
Other consumer		—		—		—		—
Total		7		1.7		3		0.6
Total		16	$	6.0		17	$	2.8

	Nine Months Ended September 30,
	2017				2016
(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		—	$	—		2	$	0.9
Commercial and industrial		4		1.5		5		0.6
Equipment financing		15		6.8		20		5.9
Total		19		8.3		27		7.4
Retail:
Residential mortgage		9		2.7		10		1.9
Home equity		11		1.3		7		0.5
Other consumer		—		—		—		—
Total		20		4.0		17		2.4
Total		39	$	12.3		44	$	9.8

24

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

People’s United’s impaired loans consist of certain loans that have been placed on non-accrual status, including all TDRs. The following table summarizes, by class of loan, information related to individually-evaluated impaired loans.

	As of September 30, 2017						As of December 31, 2016
(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	$	50.7	$	46.1	$	—	$	41.4	$	40.0	$	—
Commercial and industrial		39.3		36.7		—		50.7		45.7		—
Equipment financing		42.8		39.1		—		38.2		35.3		—
Retail:
Residential mortgage		66.8		60.0		—		63.6		58.0		—
Home equity		23.5		20.0		—		22.4		18.7		—
Other consumer		—		—		—		—		—		—
Total	$	223.1	$	201.9	$	—	$	216.3	$	197.7	$	—
With a related allowance for loan losses:
Commercial:
Commercial real estate	$	13.5	$	12.8	$	1.2	$	12.2	$	11.4	$	0.6
Commercial and industrial		25.2		24.6		3.0		25.9		25.0		4.7
Equipment financing		14.1		13.2		1.5		5.0		4.4		0.5
Retail:
Residential mortgage		12.4		12.4		1.7		13.1		13.1		2.3
Home equity		1.9		1.9		0.7		2.1		2.0		0.9
Other consumer		—		—		—		—		—		—
Total	$	67.1	$	64.9	$	8.1	$	58.3	$	55.9	$	9.0
Total impaired loans:
Commercial:
Commercial real estate	$	64.2	$	58.9	$	1.2	$	53.6	$	51.4	$	0.6
Commercial and industrial		64.5		61.3		3.0		76.6		70.7		4.7
Equipment financing		56.9		52.3		1.5		43.2		39.7		0.5
Total		185.6		172.5		5.7		173.4		161.8		5.8
Retail:
Residential mortgage		79.2		72.4		1.7		76.7		71.1		2.3
Home equity		25.4		21.9		0.7		24.5		20.7		0.9
Other consumer		—		—		—		—		—		—
Total		104.6		94.3		2.4		101.2		91.8		3.2
Total	$	290.2	$	266.8	$	8.1	$	274.6	$	253.6	$	9.0

25

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

The following tables summarize, 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.

	Three Months Ended September 30,
	2017				2016
(in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	61.8	$	0.3	$	54.1	$	0.4
Commercial and industrial		59.7		0.7		60.5		0.3
Equipment financing		46.5		0.2		38.2		0.1
Total		168.0		1.2		152.8		0.8
Retail:
Residential mortgage		72.4		0.4		71.7		0.4
Home equity		21.8		0.1		21.3		0.1
Other consumer		—		—		—		—
Total		94.2		0.5		93.0		0.5
Total	$	262.2	$	1.7	$	245.8	$	1.3

	Nine Months Ended September 30,
	2017				2016
(in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	56.9	$	0.9	$	58.6	$	1.1
Commercial and industrial		66.1		1.6		61.9		1.2
Equipment financing		43.0		0.4		35.9		0.2
Total		166.0		2.9		156.4		2.5
Retail:
Residential mortgage		71.9		1.3		72.1		1.2
Home equity		21.1		0.3		21.9		0.2
Other consumer		—		—		—		—
Total		93.0		1.6		94.0		1.4
Total	$	259.0	$	4.5	$	250.4	$	3.9

26

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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

			Past Due
As of September 30, 2017 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	10,158.6	$	20.3	$	15.2	$	35.5	$	10,194.1
Commercial and industrial		7,943.2		10.1		18.0		28.1		7,971.3
Equipment financing		2,942.7		88.4		8.0		96.4		3,039.1
Total		21,044.5		118.8		41.2		160.0		21,204.5
Retail:
Residential mortgage		6,455.4		31.8		20.4		52.2		6,507.6
Home equity		1,968.5		7.0		6.3		13.3		1,981.8
Other consumer		46.5		0.8		—		0.8		47.3
Total		8,470.4		39.6		26.7		66.3		8,536.7
Total originated loans	$	29,514.9	$	158.4	$	67.9	$	226.3	$	29,741.2

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 $21.7 million, $20.7 million and $46.1 million, respectively, and $21.9 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, 2016 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	9,989.9	$	10.9	$	11.8	$	22.7	$	10,012.6
Commercial and industrial		7,899.2		10.0		29.8		39.8		7,939.0
Equipment financing		2,941.5		68.4		11.0		79.4		3,020.9
Total		20,830.6		89.3		52.6		141.9		20,972.5
Retail:
Residential mortgage		6,027.5		22.0		17.8		39.8		6,067.3
Home equity		2,030.3		5.2		9.4		14.6		2,044.9
Other consumer		49.7		0.3		—		0.3		50.0
Total		8,107.5		27.5		27.2		54.7		8,162.2
Total originated loans	$	28,938.1	$	116.8	$	79.8	$	196.6	$	29,134.7

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 $10.5 million, $24.8 million and $28.4 million, respectively, and $17.6 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.

27

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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/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.). 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.

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People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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. Such loans are included in the tabular disclosures of credit quality indicators that follow.

Acquired Loan 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. For purchased performing loans, the required allowance for loan losses is determined in a manner similar to that for originated loans with a provision for loan losses only recorded when the required allowance for loan losses exceeds any remaining purchase discount at the loan level. For PCI loans, 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 loans in each pool. A decrease in the expected cash flows in subsequent periods requires the establishment of an allowance for loan losses at that time. At September 30, 2017 and December 31, 2016, the allowance for loan losses on acquired loans was $4.2 million and $6.3 million, respectively.

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People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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

As of September 30, 2017 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,926.2	$	7,588.1	$	2,619.7	$	20,134.0
Special mention		129.1		122.8		101.8		353.7
Substandard		137.9		259.6		317.6		715.1
Doubtful		0.9		0.8		—		1.7
Total originated loans		10,194.1		7,971.3		3,039.1		21,204.5
Acquired loans:
Pass		940.9		562.2		666.5		2,169.6
Special mention		6.2		42.4		—		48.6
Substandard		38.6		48.8		—		87.4
Doubtful		0.7		—		—		0.7
Total acquired loans		986.4		653.4		666.5		2,306.3
Total	$	11,180.5	$	8,624.7	$	3,705.6	$	23,510.8
As of September 30, 2017 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	3,259.8	$	928.2	$	27.2	$	4,215.2
Moderate risk		2,715.9		652.2		8.0		3,376.1
High risk		531.9		401.4		12.1		945.4
Total originated loans		6,507.6		1,981.8		47.3		8,536.7
Acquired loans:
Low risk		154.9		—		—		154.9
Moderate risk		60.2		—		—		60.2
High risk		58.3		59.7		3.9		121.9
Total acquired loans		273.4		59.7		3.9		337.0
Total	$	6,781.0	$	2,041.5	$	51.2	$	8,873.7

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People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

As of December 31, 2016 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,817.2	$	7,580.6	$	2,617.9	$	20,015.7
Special mention		107.3		121.9		98.8		328.0
Substandard		87.1		233.3		304.2		624.6
Doubtful		1.0		3.2		—		4.2
Total originated loans		10,012.6		7,939.0		3,020.9		20,972.5
Acquired loans:
Pass		182.9		155.5		1.0		339.4
Special mention		13.5		3.6		8.6		25.7
Substandard		37.6		27.0		2.0		66.6
Doubtful		0.7		—		—		0.7
Total acquired loans		234.7		186.1		11.6		432.4
Total	$	10,247.3	$	8,125.1	$	3,032.5	$	21,404.9
	Residential		Home		Other
As of December 31, 2016 (in millions)	Mortgage		Equity		Consumer		Total
Retail:
Originated loans:
Low risk	$	3,016.4	$	950.9	$	31.1	$	3,998.4
Moderate risk		2,538.9		663.9		7.2		3,210.0
High risk		512.0		430.1		11.7		953.8
Total originated loans		6,067.3		2,044.9		50.0		8,162.2
Acquired loans:
Low risk		75.7		—		—		75.7
Moderate risk		27.5		—		—		27.5
High risk		46.2		27.7		0.7		74.6
Total acquired loans		149.4		27.7		0.7		177.8
Total	$	6,216.7	$	2,072.6	$	50.7	$	8,340.0

Acquired Loans

Loans acquired in a business combination are initially recorded at fair value with no carryover of an acquired entity’s previously established 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 evaluated upon acquisition and classified as either purchased performing or PCI.

31

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

For purchased performing loans, any premium or discount, representing the difference between the fair value and the outstanding principal balance of the loans, is recognized (using the level yield method) as an adjustment to interest income over the remaining period to contractual maturity or until the loan is repaid in full or sold. Subsequent to the acquisition date, the method utilized to estimate the required allowance for loan losses for these loans is similar to that for originated loans. However, a provision for loan losses is only recorded when the required allowance for loan losses exceeds any remaining purchase discount at the loan level.

PCI loans represent those acquired loans with specific evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required principal and interest payments will not be collected Such 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 PCI 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 level yield method. Accordingly, PCI loans are not subject to classification as non-accrual in the same manner as other loans. Rather, PCI 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 PCI 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.

32

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

PCI loans 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. PCI 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.

At the respective acquisition dates, on an aggregate basis, the PCI loan portfolio had contractually required principal and interest payments receivable of $7.65 billion; expected cash flows of $7.09 billion; and a fair value (initial carrying amount) of $5.42 billion. The difference between the contractually required principal and interest payments receivable and the expected cash flows ($560.1 million) represented the initial nonaccretable difference. The difference between the expected cash flows and fair value ($1.67 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 September 30, 2017, the outstanding principal balance and carrying amount of the PCI loan portfolio were $630.6 million and $541.2 million, respectively ($707.0 million and $610.2 million, respectively, at December 31, 2016).

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions)	2017			2016			2017			2016
Balance at beginning of period	$	233.4		$	270.3		$	255.4		$	296.0
Acquisitions		—			—			13.1			—
Accretion		(7.1	)		(9.0	)		(22.5	)		(31.1	)
Reclassification from nonaccretable difference for loans with improved cash flows (1)		—			—			—			—
Other changes in expected cash flows (2)		—			2.4			(19.7	)		(1.2	)
Balance at end of period	$	226.3		$	263.7		$	226.3		$	263.7

(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.

33

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

Other Real Estate Owned and Repossessed Assets (included in Other Assets)

Other real estate owned (“REO”) was comprised of residential and commercial properties totaling $4.7 million and $6.3 million, respectively, at September 30, 2017, and $8.1 million and $4.0 million, respectively, at December 31, 2016. Repossessed assets totaled $5.4 million and $7.2 million at September 30, 2017 and December 31, 2016, respectively.

NOTE 5. STOCKHOLDERS’ EQUITY

Preferred Stock

People’s United is authorized to issue (i) 50.0 million shares of preferred stock, par value of $0.01 per share, of which 10.0 million shares were outstanding at both September 30, 2017 and December 31, 2016, and (ii) 1.95 billion shares of common stock, par value of $0.01 per share, of which 433.6 million shares and 405.0 million shares were issued at September 30, 2017 and December 31, 2016, respectively.

Treasury Stock

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 (86.4 million shares at both September 30, 2017 and December 31, 2016) 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”) (2.6 million and 2.7 million shares at September 30, 2017 and December 31, 2016, respectively). Following shareholder approval of the People’s United Financial, Inc. 2014 Long-Term Incentive Plan in 2014, no new awards may be granted under the RRP.

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 People’s United’s 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 three and nine months ended September 30, 2017 and 2016 is reported in the Consolidated Statements of Comprehensive Income.

34

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

The following is a summary of the changes in the components of accumulated other comprehensive loss (“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 AOCL
Balance at December 31, 2016	$	(145.6	)	$	(32.3	)	$	(17.4	)	$	0.3		$	(195.0	)
Other comprehensive income before reclassifications		—			11.1			—			0.3			11.4
Amounts reclassified from AOCL (1)		2.8			9.9			1.6			(0.4	)		13.9
Current period other comprehensive income		2.8			21.0			1.6			(0.1	)		25.3
Balance at September 30, 2017	$	(142.8	)	$	(11.3	)	$	(15.8	)	$	0.2		$	(169.7	)

(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 AOCL
Balance at December 31, 2015	$	(140.0	)	$	(17.7	)	$	(19.5	)	$	0.0		$	(177.2	)
Other comprehensive income (loss) before reclassifications		—			52.4			—			(0.1	)		52.3
Amounts reclassified from AOCL (1)		2.8			(0.1	)		1.5			0.3			4.5
Current period other comprehensive income		2.8			52.3			1.5			0.2			56.8
Balance at September 30, 2016	$	(137.2	)	$	34.6		$	(18.0	)	$	0.2		$	(120.4	)

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

35

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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

	Amounts Reclassified from AOCL
	Three Months Ended September 30,						Nine Months Ended September 30,						Affected Line Item in the Statement Where Net Income is Presented
(in millions)	2017			2016			2017			2016
Details about components of AOCL:
Amortization of pension and other postretirement plans items:
Net actuarial loss	$	(1.7	)	$	(1.7	)	$	(5.1	)	$	(4.8	)	(1)
Prior service credit		0.2			0.2			0.6			0.6		(1)
		(1.5	)		(1.5	)		(4.5	)		(4.2	)	Income before income tax expense
		0.6			0.6			1.7			1.4		Income tax expense
		(0.9	)		(0.9	)		(2.8	)		(2.8	)	Net income
Reclassification adjustment for net realized gains (losses) on securities available for sale		—			—			(15.6	)		0.1		Income before income tax expense (2)
		—			—			5.7			—		Income tax expense
		—			—			(9.9	)		0.1		Net income
Amortization of unrealized losses on securities transferred to held to held to maturity		(0.9	)		(0.9	)		(2.6	)		(2.4	)	Income before income tax expense (3)
		0.3			0.4			1.0			0.9		Income tax expense
		(0.6	)		(0.5	)		(1.6	)		(1.5	)	Net income
Amortization of unrealized gains and losses on cash flow hedges:
Interest rate swaps		0.3			(0.1	)		0.6			(0.6	)	(4)
Interest rate locks		0.1			0.1			0.1			0.1		(4)
		0.4			—			0.7			(0.5	)	Income before income tax expense
		(0.2	)		—			(0.3	)		0.2		Income tax expense
		0.2			—			0.4			(0.3	)	Net income
Total reclassifications for the period	$	(1.3	)	$	(1.4	)	$	(13.9	)	$	(4.5	)

(1) Included in the computation of net periodic benefit income (expense) reflected in compensation and benefits expense (see Note 8 for additional details).

(2) Included in other non-interest income.

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

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

36

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

NOTE 6. 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 below:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions, except per common share data)	2017			2016			2017			2016
Net income available to common shareholders	$	87.3		$	73.7		$	220.4		$	205.1
Dividends paid on and undistributed earnings allocated to participating securities		(0.1	)		(0.2	)		(0.4	)		(0.6	)
Earnings attributable to common shareholders	$	87.2		$	73.5		$	220.0		$	204.5
Weighted average common shares outstanding for basic EPS		336.9			302.9			327.6			302.4
Effect of dilutive equity-based awards		1.9			0.4			2.0			0.4
Weighted average common and common-equivalent shares for diluted EPS		338.8			303.3			329.6			302.8
Basic EPS	$	0.26		$	0.24		$	0.67		$	0.68
Diluted EPS	$	0.26		$	0.24		$	0.67		$	0.68

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 prior to 2017 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.

All unallocated Employee Stock Ownership Plan (“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 10.2 million shares and 10.1 million shares for the three and nine months ended September 30, 2017, respectively, and 18.2 million shares for both the three and nine months ended September 30, 2016, have been excluded from the calculation of diluted EPS.

37

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

NOTE 7. GOODWILL AND OTHER ACQUISITION-RELATED INTANGIBLE ASSETS

Changes in the carrying amount of People’s United’s goodwill are summarized as follows for the nine months ended September 30, 2017 and 2016:

	Operating Segment
(in millions)	Commercial Banking			Retail Banking			Wealth Management			Total
Balance at December 31, 2016	$	1,222.1		$	679.6		$	91.0		$	1,992.7
Acquisition of:
Suffolk		229.8			40.5			—			270.3
LEAF		148.4			—			—			148.4
Balance at September 30, 2017	$	1,600.3		$	720.1		$	91.0		$	2,411.4
	Operating Segment
(in millions)	Commercial Banking			Retail Banking			Wealth Management			Total
Balance at December 31, 2015	$	1,222.8		$	681.9		$	54.0		$	1,958.7
Acquisition of Eagle Insurance Group, LLC		—			—			1.4			1.4
Adjustments		(0.7	)		(2.3	)		(0.1	)		(3.1	)
Balance at September 30, 2016	$	1,222.1		$	679.6		$	55.3		$	1,957.0

People’s United’s other acquisition-related intangible assets totaled $156.5 million and $149.4 million at September 30, 2017 and December 31, 2016, respectively. At September 30, 2017, the carrying amounts of other acquisition-related intangible assets were as follows: trade name ($68.1 million); core deposit intangible ($27.9 million); client relationship intangible ($22.5 million); trust relationship intangible ($14.9 million); insurance relationship intangible ($5.4 million); favorable lease agreement ($0.6 million); non-compete agreements ($0.6 million); and mutual fund management contracts, which are not amortized ($16.5 million).

Amortization expense of other acquisition-related intangible assets totaled $7.9 million and $5.8 million for the three months ended September 30, 2017 and 2016, respectively, and $22.1 million and $17.4 million for the nine months ended September 30, 2017 and 2016, respectively. Scheduled amortization expense attributable to other acquisition-related intangible assets for the full-year of 2017 and each of the next five years is as follows: $30.0 million in 2017; $19.9 million in 2018; $18.4 million in 2019; $16.8 million in 2020; $15.0 million in 2021; and $13.5 million in 2022. There were no impairment losses relating to goodwill or other acquisition-related intangible assets recorded during the nine months ended September 30, 2017 and 2016.

38

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

NOTE 8. 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’s funding policy is to contribute the amounts required by applicable regulations, although additional amounts may be contributed from time to time.

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.

39

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

Components of net periodic benefit (income) expense and other amounts recognized in other comprehensive income for the People’s Qualified Plan, the Chittenden Qualified Plan and the Supplemental Plans (together the “Pension Plans”) and the Other Postretirement Plan are as follows:

							Other
	Pension Plans						Postretirement Plan
Three months ended September 30 (in millions)	2017			2016			2017		2016
Net periodic benefit (income) expense:
Service cost	$	—		$	—		$	0.1	$	—
Interest cost		4.9			4.7			0.1		0.2
Expected return on plan assets		(9.6	)		(8.7	)		—		—
Recognized net actuarial loss		1.6			1.6			0.1		0.1
Recognized prior service credit		(0.2	)		(0.2	)		—		—
Settlements		1.1			0.3			—		—
Net periodic benefit (income) expense	$	(2.2	)	$	(2.3	)	$	0.3	$	0.3

							Other
	Pension Plans						Postretirement Plan
Nine months ended September 30 (in millions)	2017			2016			2017			2016
Net periodic benefit (income) expense:
Service cost	$	—		$	—		$	0.2		$	0.2
Interest cost		14.3			14.1			0.4			0.5
Expected return on plan assets		(28.3	)		(25.9	)		—			—
Recognized net actuarial loss		4.9			4.6			0.2			0.2
Recognized prior service credit		(0.6	)		(0.6	)		—			—
Settlements		2.6			0.9			—			—
Net periodic benefit (income) expense		(7.1	)		(6.9	)		0.8			0.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss		(4.9	)		(4.6	)		(0.2	)		(0.2	)
Prior service credit		0.6			0.6			—			—
Total pre-tax changes recognized in other comprehensive income		(4.3	)		(4.0	)		(0.2	)		(0.2	)
Total recognized in net periodic benefit (income) expense and other comprehensive income	$	(11.4	)	$	(10.9	)	$	0.6		$	0.7

40

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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, for the nine months ended September 30, 2017, totaled $3.6 million. At September 30, 2017, the loan balance totaled $184.9 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 3,745,864 shares of People’s United common stock have been allocated or committed to be released to participants’ accounts. At September 30, 2017, 6,707,711 shares of People’s United common stock, with a fair value of $121.7 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 $4.8 million and $4.0 million for the nine months ended September 30, 2017 and 2016, respectively.

NOTE 9. 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.

41

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

NOTE 10. SEGMENT INFORMATION

See “Segment Results” included in Item 2 for segment information for the three and nine months ended September 30, 2017 and 2016.

NOTE 11. 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. 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.

42

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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, GSE residential mortgage-backed securities and CMOs, all of which are included in Level 2.

The Company’s available-for-sale securities are primarily comprised of GSE 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 September 30, 2017 and December 31, 2016, the entire available-for-sale 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 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 securities with similar duration. 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 10- and 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 8, 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.

43

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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/caps, 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 September 30, 2017 (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		741.9		—		—		741.9
GSE mortgage-backed securities and CMOs		—		2,446.6		—		2,446.6
Equity securities		9.0		—		—		9.0
Other assets:				—
Exchange-traded funds		35.0		—		—		35.0
Fixed income securities		—		1.7		—		1.7
Mutual funds		3.6		—		—		3.6
Interest rate swaps/caps		—		101.9		—		101.9
Foreign exchange contracts		—		0.2		—		0.2
Forward commitments to sell residential mortgage loans		—		0.6		—		0.6
Total	$	797.8	$	2,551.0	$	—	$	3,348.8
Financial liabilities:
Interest rate swaps/caps	$	—	$	60.5	$	—	$	60.5
Risk participation agreements (1)		—		—		—		—
Foreign exchange contracts		—		0.2		—		0.2
Interest rate-lock commitments on residential mortgage loans		—		0.7		—		0.7
Total	$	—	$	61.4	$	—	$	61.4

44

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

	Fair Value Measurements Using
As of December 31, 2016 (in millions)	Level 1		Level 2		Level 3		Total
Financial assets:
Trading account securities:
U.S. Treasury	$	6.8	$	—	$	—	$	6.8
Securities available for sale:
U.S. Treasury and agency		859.7		—		—		859.7
GSE mortgage-backed securities and CMOs		—		3,550.0		—		3,550.0
Equity securities		—		0.2		—		0.2
Other assets:
Exchange-traded funds		32.6		—		—		32.6
Fixed income securities		—		4.3		—		4.3
Mutual funds		2.7		—		—		2.7
Interest rate swaps/caps		—		173.1		—		173.1
Foreign exchange contracts		—		0.6		—		0.6
Forward commitments to sell residential mortgage loans		—		0.3		—		0.3
Total	$	901.8	$	3,728.5	$	—	$	4,630.3
Financial liabilities:
Interest rate swaps/caps	$	—	$	121.0	$	—	$	121.0
Risk participation agreements (1)		—		—		—		—
Foreign exchange contracts		—		0.3		—		0.3
Interest rate-lock commitments on residential mortgage loans		—		0.4		—		0.4
Total	$	—	$	121.7	$	—	$	121.7

(1) At both September 30, 2017 and December 31, 2016, the fair value of risk participation agreements totaled less than $0.1 million (see Note 12).

There were no transfers into or out of the Level 1 or Level 2 categories during the nine months ended September 30, 2017 or 2016.

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.

45

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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 September 30, 2017 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	15.0	$	—	$	15.0
Impaired loans (2)		—		—		64.9		64.9
REO and repossessed assets (3)		—		—		16.4		16.4
Total	$	—	$	15.0	$	81.3	$	96.3
	Fair Value Measurements Using
As of December 31, 2016 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	39.3	$	—	$	39.3
Impaired loans (2)		—		—		55.9		55.9
REO and repossessed assets (3)		—		—		19.3		19.3
Total	$	—	$	39.3	$	75.2	$	114.5

(1) Consists of residential mortgage loans; no fair value adjustments were recorded for the nine months ended September 30, 2017 and 2016.

(2) Represents the recorded investment in impaired loans with a related allowance for loan losses measured in accordance with applicable accounting guidance. The total consists of $50.6 million of Commercial loans and $14.3 million of Retail loans at September 30, 2017. The provision for loan losses on impaired loans totaled $4.1 million and $3.5 million for the nine months ended September 30, 2017 and 2016, respectively.

(3) Represents: (i) $6.3 million of commercial REO; (ii) $4.7 million of residential REO; and (iii) $5.4 million of repossessed assets at September 30, 2017. Charge-offs to the allowance for loan losses related to loans that were transferred to REO or repossessed assets totaled $2.2 million and $3.3 million for the nine months ended September 30, 2017 and 2016, respectively. Write downs and net loss on sale of foreclosed/repossessed assets charged to non-interest expense totaled $(0.3) million and $2.9 million for the same periods.

46

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

Financial Assets and Financial Liabilities Not Measured At Fair Value

As discussed previously, 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 interest rate risk (“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.

47

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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 customer repurchase agreements are equal to the respective 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.

48

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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 September 30, 2017 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	414.1	$	414.1	$	—	$	—	$	414.1
Short-term investments		302.5		—		302.5		—		302.5
Securities held to maturity		3,387.6		—		3,434.1		1.5		3,435.6
FHLB and FRB stock		320.9		—		320.9		—		320.9
Total loans, net (1)		32,086.2		—		6,583.6		25,363.9		31,947.5
Financial liabilities:
Time deposits		5,235.8		—		5,232.4		—		5,232.4
Other deposits		27,311.5		—		27,311.5		—		27,311.5
FHLB advances		3,074.1		—		3,076.0		—		3,076.0
Federal funds purchased		543.0		—		543.0		—		543.0
Customer repurchase agreements		295.8		—		295.8		—		295.8
Other borrowings		231.1		—		230.9		—		230.9
Notes and debentures		906.2		—		902.6		—		902.6

(1) Excludes impaired loans totaling $64.9 million measured at fair value on a non-recurring basis.

			Estimated Fair Value
	Carrying Amount		Measurements Using
As of December 31, 2016 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	432.4	$	432.4	$	—	$	—	$	432.4
Short-term investments		181.7		—		181.7		—		181.7
Securities held to maturity		2,005.4		—		2,011.2		1.5		2,012.7
FHLB and FRB stock		315.8		—		315.8		—		315.8
Total loans, net (1)		29,459.7		—		6,028.4		23,238.1		29,266.5
Financial liabilities:
Time deposits		4,542.2		—		4,539.7		—		4,539.7
Other deposits		25,318.6		—		25,318.6		—		25,318.6
FHLB advances		3,061.1		—		3,064.4		—		3,064.4
Federal funds purchased		617.0		—		617.0		—		617.0
Customer repurchase agreements		343.3		—		343.3		—		343.3
Other borrowings		35.4		—		35.4		—		35.4
Notes and debentures		1,030.1		—		1,000.0		—		1,000.0

(1) Excludes impaired loans totaling $55.9 million measured at fair value on a non-recurring basis.

NOTE 12. 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.

49

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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.

50

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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 13), 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). There were no derivative instruments with such credit-related contingent features in a net liability position at September 30, 2017.

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/Caps

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.

The Bank has entered into pay floating/receive fixed interest rate swaps to reduce its IRR exposure to the variability in interest cash flows on certain floating-rate commercial loans. The Bank has agreed with the swap counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated based on notional amounts totaling $210 million. The floating-rate interest payments made under the swaps are calculated using the same floating rate received on the commercial loans. The swaps effectively convert the floating-rate one-month LIBOR interest payments received on the commercial loans to a fixed rate and consequently reduce the Bank’s exposure to variability in short-term interest rates. These swaps are accounted for as cash flow hedges.

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 had previously entered into a pay fixed/receive floating interest rate swap to hedge the LIBOR-based floating rate payments on the Company’s $125 million 5.80% fixed-rate/floating-rate subordinated notes. On February 14, 2017, the Company repaid the subordinated notes and, concurrent with the repayment, the interest rate swap designated to these subordinated notes matured. This swap was accounted for as a cash flow hedge.

51

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

As a result of the LEAF acquisition, the Company assumed two interest-rate caps with a total notional amount of $150 million, both of which mature in December 2017. Prior to the acquisition, LEAF entered into derivative contracts to reduce potential volatility in its financing costs and to manage its interest rate exposure to changes in one-month LIBOR. Subsequent to the LEAF acquisition, hedge accounting was not applied for these derivatives.

Customer Derivatives

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

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.

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.

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.

52

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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 table below provides a summary of the notional amounts and fair values (presented on a gross basis) of derivatives outstanding:

							Fair Values (1)
			Notional Amounts				Assets				Liabilities
(in millions)	Type of Hedge		Sept. 30, 2017		Dec. 31, 2016		Sept. 30, 2017		Dec. 31, 2016		Sept. 30, 2017		Dec. 31, 2016
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps/caps:
Commercial customers		N/A	$	6,101.2	$	5,612.2	$	91.5	$	93.9	$	39.7	$	46.9
Institutional counterparties		N/A		5,958.2		5,620.2		10.4		65.6		20.8		74.0
Risk participation agreements (2)		N/A		383.4		251.9		—		—		—		—
Foreign exchange contracts		N/A		42.6		101.2		0.2		0.6		0.2		0.3
Forward commitments to sell residential mortgage loans		N/A		26.0		48.6		0.6		0.3		—		—
Interest rate-lock commitments on residential mortgage loans		N/A		31.7		57.0		—		—		0.7		0.4
Total								102.7		160.4		61.4		121.6
Derivatives Designated as Hedging Instruments:
Interest rate swaps:
Subordinated notes		Fair value		375.0		375.0		—		13.6		—		—
Loans		Cash flow		210.0		—		—		—		—		—
Subordinated notes		Cash flow		—		125.0		—		—		—		0.1
Total								—		13.6		—		0.1
Total fair value of derivatives							$	102.7	$	174.0	$	61.4	$	121.7

(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.

53

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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
Nine months ended September 30 (in millions)			2017			2016			2017		2016
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps/caps:
Commercial customers		N/A	$	45.4		$	210.7		$	—	$	—
Institutional counterparties		N/A		(39.1	)		(200.3	)		—		—
Foreign exchange contracts		N/A		0.3			(0.6	)		—		—
Risk participation agreements		N/A		0.5			0.1			—		—
Forward commitments to sell residential mortgage loans		N/A		0.1			0.8			—		—
Interest rate-lock commitments on residential mortgage loans		N/A		(0.1	)		(1.1	)		—		—
Total				7.1			9.6			—		—
Derivatives Designated as Hedging Instruments:
Interest rate swaps		Fair value		4.5			6.4			—		—
Interest rate swaps		Cash flow		0.6			(0.6	)		—		(0.2	)
Interest rate locks		Cash flow		0.1			0.1			—		—
Total				5.2			5.9			—		(0.2	)
Total			$	12.3		$	15.5		$	—	$	(0.2	)

(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.

NOTE 13. 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, except as indicated below, offset asset and liabilities under such arrangements in the Consolidated Statements of Condition.

Effective January 3, 2017, the Chicago Mercantile Exchange (“CME”) amended their rulebooks to legally characterize variation margin payments for over-the-counter derivatives that clear as settlements rather than collateral. Accordingly, as of that date, the Company updated its accounting policies to classify, for accounting and presentation purposes, variation margin payments deemed to be legal settlements as a single unit of account with the related derivative(s). As of September 30, 2017, this amendment impacted one of the Company’s institutional counterparties. Accordingly, People’s United has, subject to the corresponding enforceable master netting arrangement, netted the institutional counterparty’s CME derivative position and offset the counterparty’s variation margin payments in the Consolidated Statement of Condition as of September 30, 2017.

54

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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.

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 12. 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
							Financial						Net
As of September 30, 2017 (in millions)							Instruments			Collateral			Amount
Financial assets:
Interest rate swaps/caps:
Counterparty A	$	1.7	$	—	$	1.7	$	(1.7	)	$	—		$	—
Counterparty B		0.8		—		0.8		(0.8	)		—			—
Counterparty C		1.4		—		1.4		(1.4	)		—			—
Counterparty D		2.8		—		2.8		(2.8	)		—			—
Counterparty E		2.4		—		2.4		—			—			2.4
Other counterparties		1.3		—		1.3		(0.3	)		(0.9	)		0.1
Foreign exchange contracts		0.2		—		0.2		—			—			0.2
Total	$	10.6	$	—	$	10.6	$	(7.0	)	$	(0.9	)	$	2.7
Financial liabilities:
Interest rate swaps/caps:
Counterparty A	$	3.2	$	—	$	3.2	$	(1.7	)	$	(1.5	)	$	—
Counterparty B		6.9		—		6.9		(0.8	)		(6.1	)		—
Counterparty C		3.7		—		3.7		(1.4	)		(2.3	)		—
Counterparty D		5.9		—		5.9		(2.8	)		(3.1	)		—
Other counterparties		1.2		—		1.2		(0.3	)		(0.9	)		—
Foreign exchange contracts		0.2		—		0.2		—			—			0.2
Total	$	21.1	$	—	$	21.1	$	(7.0	)	$	(13.9	)	$	0.2

55

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset
							Financial						Net
As of December 31, 2016 (in millions)							Instruments			Collateral			Amount
Financial assets:
Interest rate swaps/caps:
Counterparty A	$	1.9	$	—	$	1.9	$	(1.9	)	$	—		$	—
Counterparty B		1.0		—		1.0		(1.0	)		—			—
Counterparty C		1.7		—		1.7		(1.7	)		—			—
Counterparty D		3.4		—		3.4		(3.4	)		—			—
Counterparty E		69.6		—		69.6		(50.0	)		(19.6	)		—
Other counterparties		1.6		—		1.6		(0.3	)		(1.3	)		—
Foreign exchange contracts		0.6		—		0.6		—			—			0.6
Total	$	79.8	$	—	$	79.8	$	(58.3	)	$	(20.9	)	$	0.6
Financial liabilities:
Interest rate swaps/caps:
Counterparty A	$	4.3	$	—	$	4.3	$	(1.9	)	$	(2.4	)	$	—
Counterparty B		7.7		—		7.7		(1.0	)		(6.7	)		—
Counterparty C		3.4		—		3.4		(1.7	)		(1.1	)		0.6
Counterparty D		6.9		—		6.9		(3.4	)		(1.7	)		1.8
Counterparty E		50.0		—		50.0		(50.0	)		—			—
Other counterparties		1.8		—		1.8		(0.3	)		(1.5	)		—
Foreign exchange contracts		0.3		—		0.3		—			—			0.3
Total	$	74.4	$	—	$	74.4	$	(58.3	)	$	(13.4	)	$	2.7

Resale and repurchase agreements represent agreements to purchase/sell securities subject to an obligation to resell/repurchase the same or similar securities. 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.

The following table shows the extent to which assets and liabilities exchanged under resale and repurchase agreements have been offset in the Consolidated Statements of Condition. These agreements: (i) are entered into simultaneously with the same financial institution counterparty; (ii) have the same principal amounts and inception/maturity dates; and (iii) are subject to a master netting arrangement that contains a conditional right of offset upon default. At September 30, 2017, the Company posted as collateral marketable securities with a fair value of $248.3 million and, in turn, accepted as collateral marketable securities with a fair value of $254.4 million.

As of September 30, 2017 (in millions)	Gross Amount Recognized		Gross Amount Offset			Net Amount Presented
Total resale agreements	$	250.0	$	(250.0	)	$	—
Total repurchase agreements	$	250.0	$	(250.0	)	$	—

56

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

NOTE 14. NEW ACCOUNTING STANDARDS

Standards effective in 2017

Derivatives and Hedging

In March 2016, the Financial Accounting Standards Board (the “FASB”) amended its standards with respect to derivatives and hedging. The first amendment clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship and discontinuation of the application of hedge accounting. This amendment does not require additional disclosures beyond disclosure about a change in accounting principle in the period of adoption. The second amendment clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence and no longer is required to assess whether the event that triggers the ability to exercise the option is related to interest rate or credit risk. These amendments, which are being applied prospectively, became effective for People’s United on January 1, 2017 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Investments – Equity Method and Joint Ventures

In March 2016, the FASB amended its standards with respect to the equity method of accounting by eliminating the requirement that, upon an investment qualifying for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations and retained earnings retrospectively, as if the equity method of accounting had been in effect during all previous periods that the investment was held. Rather, under the new guidance, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. Instead, any unrealized holding gain or loss is to be recognized through other comprehensive income on the date the investment qualifies for use of the equity method. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2017 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Stock Compensation

In March 2016, the FASB amended its standards with respect to certain aspects of the accounting for share-based payment awards, including: (i) the related income tax consequences; (ii) the classification of awards as either equity or liabilities; and (iii) the classification in the statement of cash flows. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2017. As a result, the Company realized windfall income tax benefits totaling $1.3 million for the nine months ended September 30, 2017. This amount, which was recognized as a discrete period income tax benefit, served to lower the Company’s year-to-date effective income tax rate by 0.05%.

57

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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 (now January 1, 2018 for People’s United) with early adoption, as of the original effective date, permitted. Since that date, the FASB has issued amendments to clarify the implementation guidance and add some practical expedients in certain areas, including: (i) principal versus agent considerations; (ii) the identification of performance obligations; and (iii) certain aspects of the accounting for licensing arrangements. These amendments do not change the core principle of the guidance and are effective for and follow the same transition requirements as the core principle.

The Company will adopt this guidance in the first quarter of 2018 using the modified retrospective method with a cumulative-effect adjustment to opening retained earnings, as appropriate. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities (approximately 75%) and non-interest income (approximately 25%). The scope of the guidance explicitly excludes net interest income as well as other revenues associated with financial assets and liabilities, including loans, leases, securities and derivatives. Accordingly, the majority of the Company’s revenues will not be affected. Certain other recurring revenue streams are within the scope of the guidance, including service charges and fees on deposit accounts, card-based and other non-deposit fees, and revenues associated with certain products and services offered by the Company’s trust and investment management, insurance and brokerage businesses.

The Company’s assessment of in-scope revenue streams is substantially complete and its preliminary analysis suggests that adoption of the guidance, including the related transition adjustment, as appropriate, is not expected to have a material impact on the Company’s Consolidated Financial Statements, its current accounting policies and practices or the timing or amount of revenue recognized. However, as new interpretative guidance related to the adoption of the amended standard is issued, the Company’s preliminary conclusions with respect to materiality could be impacted. In connection with its adoption efforts, the Company has, where appropriate, evaluated necessary changes to business processes, systems and internal controls in order to support the recognition, measurement and disclosure requirements of the new standard.

Presentation of Deferred Taxes

In November 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 condition, thereby simplifying the presentation of deferred income taxes. For public business entities, this new amendment is effective for fiscal years, and interim periods within those fiscal years, 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.

58

People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

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. Both FRB-NY and FHLB stock will continue to be presented at cost. The guidance also contains additional disclosure and presentation requirements associated with financial instruments. Specifically, the standard emphasizes the existing requirement to use “exit price” when determining fair value for disclosure purposes, clarifying that entities should not make use of a practicability exception in determining the fair value of loans.

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. While the Company continues to monitor the potential impact of the amended guidance on its Consolidated Financial Statements, such impact is indeterminable at this time as it will be dependent upon portfolio composition at the adoption date. As noted in Note 3, at September 30, 2017, the Company’s securities portfolio included equity securities with an amortized cost of $9.6 million and a fair value of $9.0 million. The Company does expect to refine the calculation used to determine the fair value of its held-for-investment loan portfolio in connection with adopting the standard.

Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB amended its standards to address the classification of certain cash receipts and payments within the statement of cash flows. Specifically, the amended guidance addresses the following: (i) debt prepayment or debt extinguishment costs; (ii) settlement of zero-coupon bonds; (iii) contingent payments made after a business combination; (iv) proceeds from the settlement of insurance claims; (v) proceeds from the settlement of corporate-owned life insurance policies, including BOLI policies; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions; and (viii) separately identifiable cash flows and application of the predominance principle. 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 retrospective transition method will be applied to all periods presented and early adoption is permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Asset Derecognition and Accounting for Partial Sales of Nonfinancial Assets

In February 2017, the FASB amended its standards to clarify the scope of its guidance on derecognition of a nonfinancial asset and provide additional guidance on the definition of in-substance nonfinancial assets and partial sales of nonfinancial assets. Under prior guidance, several different accounting models existed for use in evaluating whether the transfer of certain assets qualified for sale treatment. The amended guidance reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. For public business entities, this new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United). The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

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People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

In March 2017, the FASB amended its standards to (i) require that the service cost component of net benefit cost associated with pension and postretirement plans be reported in the same line item in which the related employees’ compensation cost is reported and (ii) specify that only the service cost component is eligible for capitalization. The other components of net benefit cost, which may not be capitalized, are to be presented separately. For public business entities, this new guidance, which is to be applied retrospectively, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United) and early adoption is permitted. The adoption of this amendment will result in a reclassification of certain net benefit cost components from compensation and benefits expense to other non-interest expense and, as such, is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Stock Compensation

In July 2017, the FASB amended its standards with respect to share-based payment awards to provide explicit guidance pertaining to the provisions of modification accounting. The amendment clarifies that an entity should not account for the effects of a modification if the award’s fair value, vesting conditions and classification (as either debt or equity) are the same immediately before and after the modification. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United) and is to be applied prospectively to awards modified on or after the adoption date. Earlier application of the amendment is permitted. The adoption of this amendment is not expected to have a significant impact 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 condition as a “right-of-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 has begun its evaluation of the amended guidance including the potential impact on its Consolidated Financial Statements. To date, the Company has identified several areas that are within the scope of the guidance, including its contracts with respect to leased real estate and office equipment. In addition, operating lease agreements entered into with customers by the Company’s equipment financing businesses are also subject to the new guidance. The Company continues to evaluate the impact of the guidance, including determining whether additional contracts exist that are deemed to be in scope. As such, no conclusions have yet been reached regarding the potential impact of adoption on the Company’s Consolidated Financial Statements. The Federal banking agencies have indicated that to the extent a “right-of-use” asset arises due to a lease of a tangible asset (e.g. building or equipment), the asset should: (i) be treated as a tangible asset not subject to deduction from regulatory capital; (ii) risk-weighted at 100%; and (iii) included in total assets for leverage capital purposes.

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People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

Premium Amortization – Purchased Callable Debt Securities

In April 2017, the FASB amended its standards to shorten the amortization period for certain callable debt securities held at a premium, requiring such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. This amendment, which does not change the accounting for callable debt securities held at a discount, is effective for public business entities for fiscal years beginning after December 15, 2018 (January 1, 2019 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.

Derivatives and Hedging

In August 2017, the FASB amended its standards with respect to the accounting for derivatives and hedging, simplifying existing guidance in order to enable companies to more accurately portray the economic effects of risk management activities in the financial statements and enhancing the transparency and understandability of hedge results through improved disclosures. This new guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (January 1, 2019 for People’s United) with early adoption permitted. The Company is still evaluating whether to apply the early adoption provisions of the standard. However, given the limited number of derivatives currently designated as hedging instruments, the adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Standards effective in 2020

Financial Instruments – Credit Losses

In June 2016, the FASB amended its standards with respect to certain aspects of measurement, recognition and disclosure of credit losses on loans and other financial instruments, including available-for-sale debt securities and purchased financial assets with credit deterioration. The amendment is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). For certain assets (such as debt securities for which an other-than-temporary impairment has been recognized before the effective date and purchased financial assets with credit deterioration), a prospective transition approach is required. For public business entities, this new amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (January 1, 2020 for People’s United) and earlier application is permitted as of the beginning of an interim or annual reporting period beginning after December 15, 2018.

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People’s United Financial, Inc.

Notes to Consolidated Financial Statements – (Unaudited)

While early adoption is permitted, the Company does not expect to elect that option. In preparing for adoption, the Company has established a cross-functional working group comprised of individuals from various disciplines, including credit, risk management, information technology and finance. That working group, which is subject to the Company’s established corporate governance and oversight structure, is currently engaged in: (i) identifying key interpretative issues; (ii) determining the appropriate level of portfolio segmentation; (iii) reviewing historical data so as to identify potential data and resource gaps; and (iv) evaluating existing credit loss forecasting models and processes in order to determine what modifications may be required. In addition, the Company has purchased a third-party vendor solution that will aid in the application of the standard. As a result of the required change in approach toward determining estimated credit losses from the current “incurred loss” model to one based on estimated cash flows over a loan’s contractual life, adjusted for prepayments (a “life of loan” model), the Company expects the new guidance will result in an increase in the allowance for loan losses, particularly for longer duration portfolios. The Company also expects the new guidance may result in an allowance for debt securities. In both cases, the extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Further, to date, no guidance has been issued by either the Company’s or the Bank’s primary regulators with respect to how the impact of the amended standard is to be treated for regulatory capital purposes.

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB amended its standards with respect to goodwill, simplifying how an entity is required to conduct the impairment assessment by eliminating Step 2, which requires a hypothetical purchase price allocation, from the goodwill impairment test. Instead, goodwill impairment will now be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. An entity will still have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. For public business entities, this new guidance is effective in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (January 1, 2020 for People’s United) and is to be applied prospectively. Early adoption is permitted for any impairment tests performed after January 1, 2017. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

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Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Periodic and other filings made by People’s United Financial, Inc. (“People’s United” or the “Company”) with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 (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; (9) the successful integration of acquisitions; and (10) 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.

Completed Acquisitions

LEAF Commercial Capital, Inc.

Effective August 1, 2017, People’s United Bank, National Association (the “Bank”) completed its acquisition of LEAF Commercial Capital, Inc. (“LEAF”) a Philadelphia-based commercial equipment finance company. The fair value of the consideration transferred in the LEAF acquisition consisted of approximately $220 million in cash.

Suffolk Bancorp

Effective April 1, 2017, People’s United completed its acquisition of Suffolk Bancorp (“Suffolk”) based in Riverhead, New York. The fair value of the consideration transferred in the Suffolk acquisition totaled approximately $485 million and consisted of approximately 26.6 million shares of People’s United common stock. At the acquisition date, Suffolk operated 27 branches in the greater Long Island area.

People’s United’s results of operations for the three and nine months ended September 30, 2017 include the results of LEAF and Suffolk beginning with the respective effective dates. See Note 2 to the Consolidated Financial Statements for a further discussion of these acquisitions.

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Selected Consolidated Financial Information

	Three Months Ended									Nine Months Ended
(dollars in millions, except per common share data)	Sept. 30, 2017			June 30, 2017			Sept. 30, 2016			Sept. 30, 2017			Sept. 30, 2016
Earnings Data:
Net interest income (fully taxable equivalent)	$	295.8		$	285.2		$	254.2		$	839.1		$	749.3
Net interest income		284.6			274.9			245.3			808.1			725.4
Provision for loan losses		7.0			7.1			8.4			18.5			28.9
Non-interest income		89.3			91.6			90.8			265.6			258.5
Non-interest expense (1)		237.1			257.3			221.4			720.5			651.6
Income before income tax expense		129.8			102.1			106.3			334.7			303.4
Net income		90.8			69.3			73.7			230.9			205.1
Net income available to common shareholders (1)		87.3			65.8			73.7			220.4			205.1
Selected Statistical Data:
Net interest margin (2)		3.04	%		2.96	%		2.80	%		2.94	%		2.80	%
Return on average assets (1),(2)		0.84			0.65			0.73			0.73			0.69
Return on average common equity (2)		6.4			4.8			6.1			5.6			5.7
Return on average tangible common equity (1),(2)		11.8			8.7			10.7			10.0			10.1
Efficiency ratio (1)		57.3			58.4			59.9			58.3			61.0
Common Share Data:
Basic and diluted earnings per common share (1)	$	0.26		$	0.19		$	0.24		$	0.67		$	0.68
Dividends paid per common share		0.1725			0.1725			0.17			0.5150			0.5075
Common dividend payout ratio (1)		66.8	%		88.6	%		70.1	%		76.8	%		75.1	%
Book value per common share (end of period)	$	16.29		$	16.18		$	15.99		$	16.29		$	15.99
Tangible book value per common share (end of period) (1)		8.68			8.99			9.18			8.68			9.18
Stock price:
High		18.26			18.21			16.40			19.85			16.68
Low		15.97			16.44			14.22			15.97			13.62
Close (end of period)		18.14			17.66			15.82			18.14			15.82

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

(2) Annualized.

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	As of and for the Three Months Ended
(dollars in millions)	Sept. 30, 2017			June 30, 2017			March 31, 2017			Dec. 31, 2016			Sept. 30, 2016
Financial Condition Data:
Total assets	$	43,998		$	43,023		$	40,230		$	40,610		$	40,692
Loans		32,384			31,611			29,687			29,745			29,368
Securities		6,914			6,880			6,424			6,738			7,046
Short-term investments		303			216			392			182			373
Allowance for loan losses		233			232			231			229			226
Goodwill and other acquisition-related intangible assets		2,568			2,426			2,136			2,142			2,070
Deposits		32,547			31,815			30,506			29,861			29,656
Borrowings		4,144			4,084			3,183			4,057			4,437
Notes and debentures		906			907			904			1,030			1,054
Stockholders’ equity		5,746			5,704			5,195			5,142			4,862
Total risk-weighted assets:
People’s United		33,029			32,095			30,229			30,540			30,451
People’s United Bank, National Association		32,981			32,050			30,202			30,489			30,415
Non-performing assets (1)		191			198			183			167			180
Net loan charge-offs		5.2			6.8			2.4			4.7			2.5
Average Balances:
Loans	$	31,994		$	31,400		$	29,355		$	29,346		$	29,107
Securities (2)		6,559			6,728			6,831			7,074			6,873
Short-term investments		347			355			371			308			361
Total earning assets		38,900			38,483			36,557			36,728			36,341
Total assets		43,256			42,666			40,317			40,623			40,304
Deposits		32,065			32,024			29,923			29,773			29,437
Borrowings		4,010			3,498			3,709			4,148			4,296
Notes and debentures		909			907			966			1,045			1,056
Total funding liabilities		36,984			36,429			34,598			34,966			34,789
Stockholders’ equity		5,722			5,696			5,166			5,039			4,841
Ratios:
Net loan charge-offs to average total loans (annualized)		0.06	%		0.09	%		0.03	%		0.06	%		0.04	%
Non-performing assets to originated loans, real estate owned and repossessed assets (1)		0.64			0.67			0.63			0.57			0.63
Originated allowance for loan losses to:
Originated loans (1)		0.77			0.77			0.77			0.77			0.76
Originated non-performing loans (1)		131.6			128.1			140.9			150.6			142.0
Average stockholders’ equity to average total assets		13.2			13.4			12.8			12.4			12.0
Stockholders’ equity to total assets		13.1			13.3			12.9			12.7			11.9
Tangible common equity to tangible assets (3)		7.1			7.5			7.4			7.2			7.2
Total risk-based capital:
People’s United		12.0			12.6			12.7			12.5			11.5
People’s United Bank, National Association		12.6			13.3			13.4			13.3			12.8

(1) Excludes acquired loans.

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

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

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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. generally accepted accounting principles (“GAAP”), management routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as the efficiency and tangible common equity ratios, tangible book value per common 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 common equity ratio and tangible book value per common 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 operating lease expense, goodwill impairment charges, amortization of other acquisition-related intangible assets, losses on real estate assets and non-recurring expenses) (the numerator) to (ii) net interest income on a fully taxable equivalent (“FTE”) basis plus total non-interest income (including the FTE adjustment on bank-owned life insurance (“BOLI”) income, the netting of operating lease expense and excluding gains and losses on sales of assets other than residential mortgage loans and acquired loans, and non-recurring income) (the denominator). People’s United 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 available to common shareholders 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) merger-related expenses, including acquisition integration and other costs; (iii) writedowns of banking house assets and related lease termination costs; (iv) severance-related costs; and (v) charges related to executive-level management separation costs, are generally also excluded when calculating the efficiency ratio. Effective in 2016, recurring writedowns of banking house assets and certain severance-related costs are no longer considered to be non-operating expenses. Operating earnings per common share (“EPS”) is derived by determining the per common share impact of the respective adjustments to arrive at operating earnings and adding (subtracting) such amounts to (from) EPS, as reported. Operating return on average assets is calculated by dividing operating earnings (annualized) by average total assets. Operating return on average tangible common equity is calculated by dividing operating earnings (annualized) by average tangible common equity. The operating common dividend payout ratio is calculated by dividing common dividends paid by operating earnings for the respective period.

The tangible common equity ratio is the ratio of (i) tangible common equity (total stockholders’ equity less preferred stock, 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 common share is calculated by dividing tangible common 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:

	Three Months Ended									Nine Months Ended
(dollars in millions)	Sept. 30, 2017			June 30, 2017			Sept. 30, 2016			Sept. 30, 2017			Sept. 30, 2016
Total non-interest expense	$	237.1		$	257.3		$	221.4		$	720.5		$	651.6
Adjustments to arrive at operating non-interest expense:
Merger-related expenses		(3.0	)		(24.8	)		(3.1	)		(29.0	)		(3.1	)
Total		(3.0	)		(24.8	)		(3.1	)		(29.0	)		(3.1	)
Operating non-interest expense		234.1			232.5			218.3			691.5			648.5
Operating lease expense		(8.8	)		(8.7	)		(9.7	)		(26.3	)		(28.0	)
Amortization of other acquisition-related intangible assets		(7.9	)		(7.9	)		(5.8	)		(22.1	)		(17.4	)
Other (1)		(1.5	)		(0.4	)		(1.8	)		(3.7	)		(5.1	)
Total non-interest expense for efficiency ratio	$	215.9		$	215.5		$	201.0		$	639.4		$	598.0
Net interest income (FTE basis)	$	295.8		$	285.2		$	254.2		$	839.1		$	749.3
Total non-interest income		89.3			91.6			90.8			265.6			258.5
Total revenues		385.1			376.8			345.0			1,104.7			1,007.8
Adjustments:
Net security (gains) losses		—			(0.1	)		—			15.6			(0.1	)
Operating lease expense		(8.8	)		(8.7	)		(9.7	)		(26.3	)		(28.0	)
BOLI FTE adjustment		1.2			1.0			0.6			2.6			2.1
Other (2)		(0.2	)		—			(0.3	)		—			(1.0	)
Total revenues for efficiency ratio	$	377.3		$	369.0		$	335.6		$	1,096.6		$	980.8
Efficiency ratio		57.3	%		58.4	%		59.9	%		58.3	%		61.0	%

(1) Items classified as “other” and deducted from non-interest expense for purposes of calculating the efficiency ratio include certain franchise taxes and real estate owned expenses.

(2) Items classified as “other” and 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:

	Three Months Ended									Nine Months Ended
(dollars in millions, except per common share data)	Sept. 30, 2017			June 30, 2017			Sept. 30, 2016			Sept. 30, 2017			Sept. 30, 2016
Net income available to common shareholders	$	87.3		$	65.8		$	73.7		$	220.4		$	205.1
Adjustments to arrive at operating earnings:
Merger-related expenses		3.0			24.8			3.1			29.0			3.1
Total pre-tax adjustments		3.0			24.8			3.1			29.0			3.1
Tax effect		(1.0	)		(8.0	)		(1.0	)		(9.2	)		(1.0	)
Total adjustments, net of tax		2.0			16.8			2.1			19.8			2.1
Operating earnings	$	89.3		$	82.6		$	75.8		$	240.2		$	207.2
EPS, as reported	$	0.26		$	0.19		$	0.24		$	0.67		$	0.68
Adjustments to arrive at operating EPS:
Merger-related expenses		—			0.05			0.01			0.06			0.01
Total adjustments per common share		—			0.05			0.01			0.06			0.01
Operating EPS	$	0.26		$	0.24		$	0.25		$	0.73		$	0.69
Average total assets	$	43,256		$	42,666		$	40,304		$	42,091		$	39,503
Operating return on average assets (annualized)		0.83	%		0.77	%		0.75	%		0.76	%		0.70	%

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

	Three Months Ended									Nine Months Ended
(dollars in millions)	Sept. 30, 2017			June 30, 2017			Sept. 30, 2016			Sept. 30, 2017			Sept. 30, 2016
Operating earnings	$	89.3		$	82.6		$	75.8		$	240.2		$	207.2
Average stockholders’ equity	$	5,722		$	5,696		$	4,841		$	5,530		$	4,799
Less: Average preferred stock		244			244			—			244			—
Average common equity		5,478			5,452			4,841			5,286			4,799
Less: Average goodwill and average other acquisition-related intangible assets		2,524			2,415			2,073			2,359			2,079
Average tangible common equity	$	2,954		$	3,037		$	2,768		$	2,927		$	2,720
Operating return on average tangible common equity		12.1	%		10.9	%		11.0	%		10.9	%		10.2	%
	Three Months Ended									Nine Months Ended
(dollars in millions)	Sept. 30, 2017			June 30, 2017			Sept. 30, 2016			Sept. 30, 2017			Sept. 30, 2016
Common dividends paid	$	58.3		$	58.3		$	51.7		$	169.3		$	154.1
Operating earnings	$	89.3		$	82.6		$	75.8		$	240.2		$	207.2
Operating common dividend payout ratio		65.3	%		70.6	%		68.2	%		70.5	%		74.4	%

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

(dollars in millions)	Sept. 30, 2017			June 30, 2017			March 31, 2017			Dec. 31, 2016			Sept. 30, 2016
Total stockholders’ equity	$	5,746		$	5,704		$	5,195		$	5,142		$	4,862
Less: Preferred stock		244			244			244			244			—
Common equity		5,502			5,460			4,951			4,898			4,862
Less: Goodwill and other acquisition-related intangible assets		2,568			2,426			2,136			2,142			2,070
Tangible common equity	$	2,934		$	3,034		$	2,815		$	2,756		$	2,792
Total assets	$	43,998		$	43,023		$	40,230		$	40,610		$	40,692
Less: Goodwill and other acquisition-related intangible assets		2,568			2,426			2,136			2,142			2,070
Tangible assets	$	41,430		$	40,597		$	38,094		$	38,468		$	38,622
Tangible common equity ratio		7.1	%		7.5	%		7.4	%		7.2	%		7.2	%
(in millions, except per common share data)	Sept. 30, 2017			June 30, 2017			March 31, 2016			Dec. 31, 2016			Sept. 30, 2016
Tangible common equity	$	2,934		$	3,034		$	2,815		$	2,756		$	2,792
Common shares issued		433.59			433.34			406.43			405.00			400.13
Less: Common shares classified as treasury shares		89.04			89.04			89.04			89.06			89.05
Unallocated ESOP common shares		6.71			6.79			6.88			6.97			7.06
Common shares		337.84			337.51			310.51			308.97			304.02
Tangible book value per common share	$	8.68		$	8.99		$	9.07		$	8.92		$	9.18

Financial Overview

People’s United reported net income of $90.8 million, or $0.26 per diluted common share, for the three months ended September 30, 2017, compared to $73.7 million, or $0.24 per diluted common share, for the year-ago period. Included in this quarter’s results were merger-related expenses totaling $3.0 million ($2.0 million after-tax) or less than $0.01 per common share. Included in the results for the year-ago period were merger-related expenses totaling $3.1 million ($2.1 million after-tax), or $0.01 per common share. Compared to the year-ago period, third quarter 2017 earnings reflect the benefits from recent acquisitions, continued loan and deposit growth, and meaningful cost control.

People’s United’s return on average assets was 0.84% for the three months ended September 30, 2017 compared to 0.73% for the year-ago period. Return on average tangible common equity was 11.8% for the three months ended September 30, 2017 compared to 10.7% for the year-ago period. Compared to the third quarter of 2016, FTE net interest income increased $41.6 million to $295.8 million and the net interest margin increased 24 basis points to 3.04%. FTE net interest income increased $10.6 million and the net interest margin increased eight basis points compared to the second quarter of 2017 (see Net Interest Income).

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Net income for the nine months ended September 30, 2017 totaled $230.9 million, or $0.67 per diluted common share, compared to $205.1 million, or $0.68 per diluted common share, for the year-ago period. Included in the results for the nine months ended September 30, 2017 and 2016 were merger-related expenses totaling $29.0 million ($19.8 million after-tax) or $0.06 per common share, and $3.1 million ($2.1 million after-tax) or $0.01 per common share, respectively. People’s United’s return on average assets was 0.73% for the nine months ended September 30, 2017 compared to 0.69% for the year-ago period. Return on average tangible stockholders’ equity was 10.0% for the nine months ended September 30, 2017 compared to 10.1% for the year-ago period. On an operating basis, return on average assets was 0.76% and return on average tangible common equity was 10.9% for the nine months ended September 30, 2017. FTE net interest income totaled $839.1 million for the nine months ended September 30, 2017, an $89.8 million increase from the year-ago period and the net interest margin increased 14 basis points to 2.94%.

Average total earning assets increased $2.6 billion compared to the third quarter of 2016, reflecting a $2.9 billion increase in average total loans partially offset by a $169 million decrease in average securities. Average total funding liabilities increased $2.2 billion compared to the year-ago quarter, reflecting a $2.6 billion increase in average total deposits, partially offset by decreases of $286 million in average total borrowings and $147 million in average notes and debentures.

Compared to the year-ago quarter, total non-interest income decreased $1.5 million and total non-interest expense increased $15.7 million. The efficiency ratio was 57.3% for the third quarter of 2017 compared to 59.9% for the year-ago period (see Non-Interest Income and Non-Interest Expense).

The provision for loan losses in the third quarter of 2017 totaled $7.0 million compared to $8.4 million in the year-ago period. Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.06% in the third quarter of 2017 compared to 0.04% in the year-ago quarter. The allowance for loan losses on originated loans was $229.2 million at September 30, 2017, a $6.2 million increase from December 31, 2016. The allowance for loan losses on acquired loans was $4.2 million at September 30, 2017, a $1.9 million decrease from December 31, 2016. Non-performing assets (excluding acquired non-performing loans) totaled $190.7 million at September 30, 2017, a $23.4 million increase from December 31, 2016. At September 30, 2017, the originated allowance for loan losses as a percentage of originated loans was 0.77% and as a percentage of originated non-performing loans was 131.6%, compared to 0.77% and 150.6%, respectively, at December 31, 2016 (see Asset Quality).

People’s United’s total stockholders’ equity was $5.7 billion at September 30, 2017 compared to $5.1 billion at December 31, 2016. Stockholders’ equity as a percentage of total assets was 13.1% at September 30, 2017 compared to 12.7% at December 31, 2016. Tangible common equity as a percentage of tangible assets was 7.1% at September 30, 2017 compared to 7.2% at December 31, 2016 (see Stockholders’ Equity and Dividends). People’s United’s and the Bank’s Total risk-based capital ratios were 12.0% and 12.6%, respectively, at September 30, 2017, compared to 12.5% and 13.3%, respectively, at December 31, 2016 (see Regulatory Capital Requirements).

Segment Results

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.

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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 the Company’s traditional wealth management activities, 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.

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.

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.

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 operating 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. 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. 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.

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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. 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 2016, and concluded that performance of the two-step impairment test was not required.

When performed, the goodwill impairment analysis is a two-step 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. See Note 14 to the Consolidated Financial Statements for a further discussion regarding the assessment of goodwill impairment.

Segment Performance Summary

Three months ended September 30, 2017 (in millions)	Commercial Banking		Retail Banking		Total Reportable Segments		Treasury		Other			Total Consolidated
Net interest income (loss)	$	164.5	$	105.0	$	269.5	$	26.4	$	(11.3	)	$	284.6
Provision for loan losses		11.5		3.4		14.9		—		(7.9	)		7.0
Total non-interest income		40.1		46.9		87.0		3.1		(0.8	)		89.3
Total non-interest expense		90.8		136.1		226.9		4.4		5.8			237.1
Income (loss) before income tax expense (benefit)		102.3		12.4		114.7		25.1		(10.0	)		129.8
Income tax expense (benefit)		30.7		3.8		34.5		7.5		(3.0	)		39.0
Net income (loss)	$	71.6	$	8.6	$	80.2	$	17.6	$	(7.0	)	$	90.8
Average total assets	$	25,307.8	$	9,776.6	$	35,084.4	$	7,293.4	$	878.6		$	43,256.4
Average total liabilities		8,121.0		20,539.7		28,660.7		8,485.3		388.2			37,534.2
Nine months ended September 30, 2017 (in millions)	Commercial Banking		Retail Banking		Total Reportable Segments		Treasury		Other			Total Consolidated
Net interest income (loss)	$	459.0	$	298.7	$	757.7	$	80.5	$	(30.1	)	$	808.1
Provision for loan losses		31.6		10.0		41.6		—		(23.1	)		18.5
Total non-interest income		121.4		136.5		257.9		8.2		(0.5	)		265.6
Total non-interest expense		262.7		405.8		668.5		11.2		40.8			720.5
Income (loss) before income tax expense (benefit)		286.1		19.4		305.5		77.5		(48.3	)		334.7
Income tax expense (benefit)		88.9		6.1		95.0		24.1		(15.3	)		103.8
Net income (loss)	$	197.2	$	13.3	$	210.5	$	53.4	$	(33.0	)	$	230.9
Average total assets	$	24,183.0	$	9,661.3	$	33,844.3	$	7,427.7	$	818.6		$	42,090.6
Average total liabilities		7,578.0		20,184.4		27,762.4		8,411.4		386.7			36,560.5

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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 equipment financing operations, as well as cash management, correspondent banking, municipal banking, institutional trust services, corporate trust, insurance services provided through People’s United Insurance Agency, Inc. and private banking.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Net interest income	$	164.5	$	143.6	$	459.0	$	423.2
Provision for loan losses		11.5		10.0		31.6		29.3
Total non-interest income		40.1		42.5		121.4		120.3
Total non-interest expense		90.8		84.1		262.7		244.3
Income before income tax expense		102.3		92.0		286.1		269.9
Income tax expense		30.7		28.2		88.9		87.5
Net income	$	71.6	$	63.8	$	197.2	$	182.4
Average total assets	$	25,307.8	$	23,003.3	$	24,183.0	$	22,613.4
Average total liabilities		8,121.0		6,852.4		7,578.0		6,575.4

Commercial Banking net income increased $7.8 million for the three months ended September 30, 2017 compared to the year-ago period. The $20.9 million increase in net interest income primarily reflects the benefit from an increase in average commercial loans and leases (including new business yields higher than the total portfolio yield), partially offset by increases in net FTP funding charges and interest expense. Non-interest income for the three months ended September 30, 2017 decreased $2.4 million compared to the year-ago period, primarily reflecting decreases in net customer interest rate swap income and commercial banking lending fees. The $6.7 million increase in non-interest expense in the third quarter of 2017 compared to the year-ago period reflects higher levels of both direct and allocated expenses. Average total assets increased $2.3 billion and average total liabilities increased $1.3 billion compared to the third quarter of 2016, reflecting the Suffolk and LEAF acquisitions, as well as organic 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. This segment also includes brokerage, financial advisory services, investment management services and life insurance provided by People’s Securities, Inc. and non-institutional trust services.

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2017		2016			2017		2016
Net interest income	$	105.0	$	87.0		$	298.7	$	258.8
Provision for loan losses		3.4		3.3			10.0		9.7
Total non-interest income		46.9		42.8			136.5		124.2
Total non-interest expense		136.1		128.0			405.8		380.3
Income (loss) before income tax expense (benefit)		12.4		(1.5	)		19.4		(7.0	)
Income tax expense (benefit)		3.8		(0.5	)		6.1		(2.3	)
Net income (loss)	$	8.6	$	(1.0	)	$	13.3	$	(4.7	)
Average total assets	$	9,776.6	$	9,023.2		$	9,661.3	$	8,847.8
Average total liabilities		20,539.7		19,194.9			20,184.4		19,256.7

Retail Banking net income for the three months ended September 30, 2017 compared to a net loss for the year-ago period primarily reflects an increase in net interest income partially offset by an increase in non-interest expense. The $18.0 million increase in net interest income primarily reflects the benefit from higher net FTP funding credits and an increase in average residential mortgage loans, including new business yields higher than the total portfolio yield, partially offset by an increase in interest expense. Non-interest income increased $4.1 million from the year-ago period, primarily reflecting the addition of Gerstein, Fisher & Associates, Inc. (“Gerstein Fisher”) in November 2016. The $8.1 million increase in non-interest expense in the third quarter of 2017 compared to the year-ago period reflects higher levels of both direct and allocated expenses. Compared to the third quarter of 2016, average total assets increased $753 million and average total liabilities increased $1.3 billion, reflecting the Suffolk acquisition and organic loan and deposit growth.

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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.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Net interest income	$	26.4	$	21.0	$	80.5	$	65.8
Total non-interest income		3.1		6.7		8.2		12.2
Total non-interest expense		4.4		1.9		11.2		5.9
Income before income tax expense		25.1		25.8		77.5		72.1
Income tax expense		7.5		7.9		24.1		23.3
Net income	$	17.6	$	17.9	$	53.4	$	48.8
Average total assets	$	7,293.4	$	7,552.0	$	7,427.7	$	7,338.3
Average total liabilities		8,485.3		9,069.1		8,411.4		8,525.1

Treasury net income for the three months ended September 30, 2017 decreased $0.3 million compared to the year-ago period. The $5.4 million increase in net interest income primarily reflects the benefits from higher net funding credits and an increase in securities income, partially offset by an increase in interest expense. Non-interest income for the three and nine months ended September 30, 2016 includes income related to a distribution received on an acquired equity investment. The $2.5 million increase in non-interest expense in the third quarter of 2017 compared to the year-ago period reflects a higher level of allocated expenses. Compared to the third quarter of 2016, average total assets decreased $259 million, primarily reflecting a decrease in average securities, and average total liabilities decreased $584 million, reflecting decreases in borrowings and notes and debentures, partially offset by an increase in deposits.

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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. Non-interest income for the nine months ended September 30, 2016 includes a $1.2 million gain on the sale of an interest in a real estate investment. Non-interest expense for the three and nine months ended September 30, 2017 includes merger-related expenses totaling $3.0 million and $29.0 million, respectively, and $3.1 million for both periods in 2016.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Net interest loss	$	(11.3	)	$	(6.3	)	$	(30.1	)	$	(22.4	)
Provision for loan losses		(7.9	)		(4.9	)		(23.1	)		(10.1	)
Total non-interest income		(0.8	)		(1.2	)		(0.5	)		1.8
Total non-interest expense		5.8			7.4			40.8			21.1
Loss before income tax benefit		(10.0	)		(10.0	)		(48.3	)		(31.6	)
Income tax benefit		(3.0	)		(3.0	)		(15.3	)		(10.2	)
Net loss	$	(7.0	)	$	(7.0	)	$	(33.0	)	$	(21.4	)
Average total assets	$	878.6		$	725.5		$	818.6		$	703.1
Average total liabilities		388.2			347.1			386.7			346.4

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.

In response to continued signs of a moderately expanding U.S. economy, the Federal Reserve Board (the “FRB”) has raised the targeted range for the federal funds rate (currently between 1.00% and 1.25%) four times by a total of 100 basis points since December 2015. Until that date, the FRB had not changed the targeted range of between 0% and 0.25% since December 2008. For the third quarter of 2017, the average effective federal funds rate was 1.16%.

The net interest margin was 3.04% in the third quarter of 2017, compared to 2.96% in the second quarter of 2017 and 2.80% in the third quarter of 2016. The improvement in the net interest margin from the second quarter of 2017 primarily reflects higher yields on the loan portfolio.

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Third Quarter 2017 Compared to Third Quarter 2016

FTE net interest income increased $41.6 million compared to the third quarter of 2016, reflecting a $57.0 million increase in total interest and dividend income, partially offset by a $15.4 million increase in total interest expense, and the net interest margin increased 24 basis points to 3.04%.

Average total earning assets were $38.9 billion in the third quarter of 2017, a $2.6 billion increase from the third quarter of 2016, reflecting a $2.9 billion increase in average total loans partially offset by a $314 million decrease 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 the third quarter of 2017 compared to 80%, 19% and 1%, respectively, in the third quarter of 2016. In the current quarter, the yield earned on the total loan portfolio was 3.81% and the yield earned on securities and short-term investments was 2.64%, compared to 3.49% and 2.18%, respectively, in the year-ago quarter. Excluding adjustable-rate residential mortgage loans, which are mostly of the hybrid variety, 50% of the loan portfolio had floating interest rates at September 30, 2017, compared to 51% at December 31, 2016.

The average total commercial and residential mortgage loan portfolios increased $2.1 billion and $796 million, respectively, compared to the year-ago quarter, reflecting organic growth and loans acquired in the Suffolk and LEAF acquisitions. Average consumer loans decreased $43 million compared to the year-ago quarter, primarily reflecting a $46 million decrease in average home equity loans.

Average total funding liabilities were $37.0 billion in the third quarter of 2017, a $2.2 billion increase from the year-ago period, reflecting a $2.6 billion increase in average total deposits, partially offset by decreases of $286 million in average total borrowings and $147 million in average notes and debentures. The increase in average total deposits reflects organic growth, deposits acquired in the Suffolk acquisition and a $206 million increase in average brokered deposits. Excluding brokered deposits, average non-interest-bearing deposits, average savings, interest-bearing checking and money market deposits and average time deposits increased $1.3 billion, $1.1 billion and $54 million, respectively. Average total deposits comprised 87% and 85% of average total funding liabilities in the third quarter of 2017 and the year-ago period, respectively. The decrease in average notes and debentures reflects the repayment in February 2017 of the $125 million 5.80% fixed-rate/floating-rate subordinated notes.

The 14 basis point increase to 0.59% in the rate paid on average total funding liabilities primarily reflects the increases in the targeted federal funds rate discussed above. The rate paid on average total deposits increased nine basis points compared to the third quarter of 2016, reflecting increases of 15 basis points in savings, interest-bearing checking and money market deposits and six basis points in time deposits, partially offset by the benefit from a $1.3 billion increase in non-interest-bearing deposits. Average savings, interest-bearing checking and money market deposits and average time deposits comprised 61% and 15%, respectively, of average total deposits in the third quarter of 2017, compared to 62% and 16%, respectively, in the comparable 2016 period.

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Third Quarter 2017 Compared to Second Quarter 2017

FTE net interest income increased $10.6 million compared to the second quarter of 2017, reflecting an $18.1 million increase in total interest and dividend income, partially offset by a $7.5 million increase in total interest expense, and the net interest margin increased eight basis points to 3.04%. The improvement in the net interest margin reflects higher yields on the loan portfolio, one additional calendar day in the third quarter of 2017 and an increase in the yield on the securities portfolio (which benefited the net interest margin by 12, two and one basis point, respectively), partially offset by higher rates on borrowings and deposits (which reduced the net interest margin by four and three basis points, respectively). The acquisition of LEAF in early August benefited the net interest margin by approximately five basis points.

Average total earning assets increased $417 million from the second quarter of 2017, primarily reflecting a $593 million increase in average total loans, partially offset by a $169 million decrease in average securities. In the third quarter of 2017, the average total commercial loan portfolio increased $577 million, primarily due to the LEAF acquisition.

Average total funding liabilities increased $555 million, primarily reflecting increases of $512 million in average total borrowings and $41 million in average total deposits. The increase in average total borrowings reflects the additional funding used to support securities purchases late in the quarter, as well as borrowings assumed in the LEAF acquisition.

The following tables present average balance sheets, FTE-basis interest income, interest expense and the corresponding average yields earned and rates paid for the three months ended September 30, 2017, June 30, 2017 and September 30, 2016, and the nine months ended September 30, 2017 and 2016. 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.

78

Average Balance Sheet, Interest and Yield/Rate Analysis (1)

	September 30, 2017							June 30, 2017							September 30, 2016
Three months ended (dollars in millions)	Average Balance		Interest		Yield/ Rate			Average Balance		Interest		Yield/ Rate			Average Balance		Interest		Yield/ Rate
Assets:
Short-term investments	$	347.3	$	1.1		1.25	%	$	354.8	$	0.9		0.97	%	$	361.0	$	0.4		0.47	%
Securities (2)		6,558.8		44.4		2.71			6,727.5		44.6		2.65			6,872.5		38.9		2.26
Loans:
Commercial real estate		11,169.8		105.6		3.78			11,371.4		105.3		3.70			9,978.8		85.7		3.44
Commercial and industrial		8,580.0		84.0		3.91			8,276.1		77.7		3.75			8,053.2		71.1		3.53
Equipment financing		3,399.5		41.5		4.89			2,924.8		31.5		4.31			2,984.7		32.8		4.39
Residential mortgage		6,731.7		52.8		3.13			6,693.3		52.4		3.14			5,935.3		46.1		3.11
Home equity and other consumer		2,112.6		21.0		3.97			2,134.8		19.9		3.73			2,155.4		18.4		3.41
Total loans		31,993.6		304.9		3.81			31,400.4		286.8		3.65			29,107.4		254.1		3.49
Total earning assets		38,899.7	$	350.4		3.60	%		38,482.7	$	332.3		3.45	%		36,340.9	$	293.4		3.23	%
Other assets		4,356.7							4,183.1							3,963.1
Total assets	$	43,256.4						$	42,665.8						$	40,304.0
Liabilities and stockholders’ equity:
Deposits:
Non-interest-bearing	$	7,609.1	$	—		—	%	$	7,399.5	$	—		—	%	$	6,325.3	$	—		—	%
Savings, interest-bearing checking and money market		19,529.1		21.4		0.44			19,895.8		19.6		0.39			18,356.6		13.3		0.29
Time		4,926.8		13.0		1.06			4,728.7		11.3		0.96			4,755.1		11.9		1.00
Total deposits		32,065.0		34.4		0.43			32,024.0		30.9		0.39			29,437.0		25.2		0.34
Borrowings:
Federal Home Loan Bank advances		2,834.3		9.4		1.33			2,546.6		7.1		1.11			3,306.7		5.1		0.62
Federal funds purchased		649.9		2.1		1.26			625.2		1.6		1.04			674.1		0.9		0.51
Customer repurchase agreements		311.3		0.1		0.19			313.9		0.1		0.19			314.8		0.1		0.19
Other borrowings		214.2		1.1		2.06			11.8		0.1		0.79			—		—		—
Total borrowings		4,009.7		12.7		1.27			3,497.5		8.9		1.02			4,295.6		6.1		0.57
Notes and debentures		908.9		7.5		3.29			907.2		7.3		3.24			1,056.4		7.9		2.97
Total funding liabilities		36,983.6	$	54.6		0.59	%		36,428.7	$	47.1		0.52	%		34,789.0	$	39.2		0.45	%
Other liabilities		550.6							541.0							674.5
Total liabilities		37,534.2							36,969.7							35,463.5
Stockholders’ equity		5,722.2							5,696.1							4,840.5
Total liabilities and stockholders’ equity	$	43,256.4						$	42,665.8						$	40,304.0
Net interest income/spread (3)			$	295.8		3.01	%			$	285.2		2.93	%			$	254.2		2.78	%
Net interest margin						3.04	%						2.96	%						2.80	%

(1) Average yields earned and rates paid are annualized.

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

(3) The FTE adjustment was $11.2 million, $10.3 million and $8.9 million for the three months ended September 30, 2017, June 30, 2017 and September 30, 2016, respectively.

79

Average Balance Sheet, Interest and Yield/Rate Analysis (1)

	September 30, 2017							September 30, 2016
Nine months ended (dollars in millions)	Average Balance		Interest		Yield/ Rate			Average Balance		Interest		Yield/ Rate
Assets:
Short-term investments	$	357.4	$	2.7		1.01	%	$	335.7	$	1.1		0.46	%
Securities (2)		6,704.9		132.2		2.63			6,690.4		116.7		2.33
Loans:
Commercial real estate		10,913.9		299.5		3.66			9,991.1		257.8		3.44
Commercial and industrial		8,192.8		229.6		3.74			7,754.1		200.6		3.45
Equipment financing		3,100.5		104.6		4.50			2,972.7		99.1		4.44
Residential mortgage		6,601.2		154.8		3.13			5,719.3		134.2		3.13
Home equity and other consumer		2,117.6		59.3		3.73			2,173.1		55.4		3.40
Total loans		30,926.0		847.8		3.66			28,610.3		747.1		3.48
Total earning assets		37,988.3	$	982.7		3.45	%		35,636.4	$	864.9		3.24	%
Other assets		4,102.3							3,866.2
Total assets	$	42,090.6						$	39,502.6
Liabilities and stockholders’ equity:
Deposits:
Non-interest-bearing	$	7,152.2	$	—		—	%	$	6,139.3	$	—		—	%
Savings, interest-bearing checking and money market		19,446.5		57.4		0.39			18,138.6		38.9		0.29
Time		4,746.5		35.0		0.98			4,802.7		36.9		1.02
Total deposits		31,345.2		92.4		0.39			29,080.6		75.8		0.35
Borrowings:
Federal Home Loan Bank advances		2,698.0		22.3		1.10			3,115.5		14.1		0.61
Federal funds purchased		627.6		4.9		1.03			497.2		1.8		0.48
Customer repurchase agreements		311.6		0.4		0.19			340.0		0.5		0.19
Other borrowings		102.5		1.3		1.71			—		—		—
Total borrowings		3,739.7		28.9		1.03			3,952.7		16.4		0.55
Notes and debentures		927.1		22.3		3.21			1,049.7		23.4		2.97
Total funding liabilities		36,012.0	$	143.6		0.53	%		34,083.0	$	115.6		0.45	%
Other liabilities		548.5							620.6
Total liabilities		36,560.5							34,703.6
Stockholders’ equity		5,530.1							4,799.0
Total liabilities and stockholders’ equity	$	42,090.6						$	39,502.6
Net interest income/spread (3)			$	839.1		2.92	%			$	749.3		2.79	%
Net interest margin						2.94	%						2.80	%

(1) Average yields earned and rates paid are annualized.

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

(3) The FTE adjustment was $31.0 million and $23.9 million for the nine months ended September 30, 2017 and 2016, respectively.

80

Volume and Rate Analysis

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

	Three Months Ended September 30, 2017 Compared To
	September 30, 2016								June 30, 2017
	Increase (Decrease)								Increase (Decrease)
(in millions)	Volume			Rate		Total			Volume			Rate		Total
Interest and dividend income:
Short-term investments	$	—		$	0.7	$	0.7		$	—		$	0.2	$	0.2
Securities		(1.8	)		7.3		5.5			(1.1	)		0.9		(0.2	)
Loans:
Commercial real estate		10.8			9.1		19.9			(1.9	)		2.2		0.3
Commercial and industrial		4.9			8.0		12.9			2.9			3.4		6.3
Equipment financing		4.8			3.9		8.7			5.5			4.5		10.0
Residential mortgage		6.2			0.5		6.7			0.3			0.1		0.4
Home equity and other consumer		(0.4	)		3.0		2.6			(0.2	)		1.3		1.1
Total loans		26.3			24.5		50.8			6.6			11.5		18.1
Total change in interest and dividend income		24.5			32.5		57.0			5.5			12.6		18.1
Interest expense:
Deposits:
Savings, interest-bearing checking and money market		0.9			7.2		8.1			(0.4	)		2.2		1.8
Time		0.4			0.7		1.1			0.5			1.2		1.7
Total deposits		1.3			7.9		9.2			0.1			3.4		3.5
Borrowings:
Federal Home Loan Bank advances		(0.8	)		5.1		4.3			0.9			1.4		2.3
Federal funds purchased		—			1.2		1.2			0.1			0.4		0.5
Customer repurchase agreements		—			—		—			—			—		—
Other borrowings		1.1			—		1.1			1.0			—		1.0
Total borrowings		0.3			6.3		6.6			2.0			1.8		3.8
Notes and debentures		(1.2	)		0.8		(0.4	)		—			0.2		0.2
Total change in interest expense		0.4			15.0		15.4			2.1			5.4		7.5
Change in net interest income	$	24.1		$	17.5	$	41.6		$	3.4		$	7.2	$	10.6

81

Volume and Rate Analysis

	Nine Months Ended September 30, 2017 Compared To September 30, 2016
	Increase (Decrease)
(in millions)	Volume			Rate			Total
Interest and dividend income:
Short-term investments	$	0.1		$	1.5		$	1.6
Securities		0.3			15.2			15.5
Loans:
Commercial real estate		24.7			17.0			41.7
Commercial and industrial		11.7			17.3			29.0
Equipment financing		4.3			1.2			5.5
Residential mortgage		20.7			(0.1	)		20.6
Home equity and other consumer		(1.4	)		5.3			3.9
Total loans		60.0			40.7			100.7
Total change in interest and dividend income		60.4			57.4			117.8
Interest expense:
Deposits:
Savings, interest-bearing checking and money market		3.0			15.5			18.5
Time		(0.4	)		(1.5	)		(1.9	)
Total deposits		2.6			14.0			16.6
Borrowings:
Federal Home Loan Bank advances		(2.1	)		10.3			8.2
Federal funds purchased		0.6			2.5			3.1
Customer repurchase agreements		—			(0.1	)		(0.1	)
Other borrowings		1.3			—			1.3
Total borrowings		(0.2	)		12.7			12.5
Notes and debentures		(2.9	)		1.8			(1.1	)
Total change in interest expense		(0.5	)		28.5			28.0
Change in net interest income	$	60.9		$	28.9		$	89.8

82

Non-Interest Income

	Three Months Ended						Nine Months Ended
	Sept. 30,		June 30,		Sept. 30,		Sept. 30,			Sept. 30,
(in millions)	2017		2017		2016		2017			2016
Bank service charges	$	25.3	$	25.0	$	25.3	$	73.8		$	73.8
Investment management fees		16.9		16.3		11.6		49.2			34.1
Operating lease income		10.9		11.0		11.2		32.1			31.7
Commercial banking lending fees		7.0		11.5		7.1		26.7			24.4
Insurance revenue		9.7		7.5		9.8		26.3			26.1
Cash management fees		6.8		6.5		6.5		19.6			18.8
Brokerage commissions		2.8		3.4		3.2		9.2			9.4
Net gains on sales of residential mortgage loans		1.1		0.7		1.9		2.7			3.7
Net security gains (losses)		—		0.1		—		(15.6	)		0.1
Other non-interest income:
Customer interest rate swap income, net		1.9		2.4		3.7		7.1			10.6
BOLI		2.1		1.9		1.2		4.8			4.2
Other		4.8		5.3		9.3		29.7			21.6
Total other non-interest income		8.8		9.6		14.2		41.6			36.4
Total non-interest income	$	89.3	$	91.6	$	90.8	$	265.6		$	258.5

Total non-interest income in the third quarter of 2017 decreased $1.5 million compared to the third quarter of 2016 and $2.3 million compared to the second quarter of 2017. The decrease in non-interest income compared to the third quarter of 2016 primarily reflects decreases in net customer interest rate swap income and income recorded in the third quarter of 2016 related to a distribution received on an acquired equity investment (included in other), essentially offset by an increase in investment management fees. The decrease compared to the second quarter of 2017 primarily reflects decreases in commercial banking lending fees, brokerage commissions and net customer interest rate swap income, partially offset by an increase in insurance revenue.

The improvement in investment management fees compared to the third quarter of 2016 primarily reflects the acquisition of Gerstein Fisher in November 2016. At September 30, 2017, assets under administration, which are not reported as assets of People’s United, totaled $23.0 billion, of which $8.9 billion are under discretionary management, compared to $21.3 billion and $8.0 billion, respectively, at December 31, 2016.

The increase in insurance revenue from the second quarter of 2017 primarily reflects the seasonality of commercial insurance renewals. The decrease in commercial banking lending fees compared to the second quarter of 2017 primarily reflects higher prepayment fees in the second quarter of 2017. The decrease in net gains on sales of residential mortgage loans in the third quarter of 2017 compared to the year-ago period reflects a 40% decrease in the volume of residential mortgage loans sold as well as narrower spreads on pricing.

On an FTE basis, BOLI income totaled $3.3 million in the third quarter of 2017 compared to $2.9 million in the second quarter of 2017 and $1.8 million in the year-ago quarter. BOLI income in both the third and second quarters of 2017 includes death benefits received totaling $0.5 million.

83

Non-Interest Expense

	Three Months Ended									Nine Months Ended
	Sept. 30,			June 30,			Sept. 30,			Sept. 30,			Sept. 30,
(dollars in millions)	2017			2017			2016			2017			2016
Compensation and benefits	$	128.0		$	130.0		$	116.1		$	383.6		$	341.6
Occupancy and equipment		40.2			39.8			37.7			118.6			112.6
Professional and outside service fees		19.2			28.1			17.7			62.8			51.5
Regulatory assessments		10.3			9.9			9.9			29.8			27.1
Operating lease expense		8.8			8.7			9.7			26.3			28.0
Amortization of other acquisition-related intangibles		7.9			7.9			5.8			22.1			17.4
Other non-interest expense:
Stationery, printing, postage and telephone		5.0			6.1			4.6			16.7			14.0
Advertising and promotion		3.1			3.1			3.0			8.7			8.1
Other		14.6			23.7			16.9			51.9			51.3
Total other non-interest expense		22.7			32.9			24.5			77.3			73.4
Total non-interest expense	$	237.1		$	257.3		$	221.4		$	720.5		$	651.6
Efficiency ratio		57.3	%		58.4	%		59.9	%		58.3	%		61.0	%

Total non-interest expense in the third quarter of 2017 increased $15.7 million compared to the third quarter of 2016 and decreased $20.2 million compared to the second quarter of 2017. Included in total non-interest expense are merger related expenses totaling $3.0 million in the third quarter of 2017, $24.8 million in the second quarter of 2017 and $3.1 million in the year-ago quarter.

As compared to both the second quarter of 2017 and third quarter of 2016, the improvement in the efficiency ratio reflects increases in both adjusted total revenues and adjusted total expenses (see Non-GAAP Financial Measures and Reconciliation to GAAP).

The year-over-year increase in compensation and benefits reflects LEAF, Suffolk and Gerstein Fisher personnel costs in the current period (none in the prior year period), increases in incentive and health care expenses, as well as normal merit increases. Excluding $3.4 million of merger-related expenses included in compensation and benefits in the second quarter of 2017, the $1.4 million increase compared to the second quarter of 2017 primarily reflects a partial quarter of LEAF personnel costs.

Professional and outside services fees include merger-related expenses totaling $2.7 million in the third quarter of 2017, $10.8 million in the second quarter of 2017 and $3.1 million in the third quarter of 2016. Excluding such expenses, the $0.8 million decrease in professional and outside services fees compared to the second quarter of 2017 and $1.9 million increase compared to the third quarter of 2016 are primarily related to the timing of certain projects in 2017 and the latter half of 2016.

Regulatory assessments include Federal Deposit Insurance Corporation (“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 increases in regulatory assessments compared to the second quarter of 2017 and third quarter of 2016 primarily reflect an increase in the Bank’s average total assets.

Scheduled amortization expense attributable to other acquisition-related intangible assets for the full-year of 2017 and each of the next five years is as follows: $30.0 million in 2017; $19.9 million in 2018; $18.4 million in 2019; $16.8 million in 2020; $15.0 million in 2021; and $13.5 million in 2022.

84

Included in other non-interest expense in both the third and second quarter of 2017 are merger-related expenses totaling $0.3 million and $10.6 million, respectively.

In March 2017, the Financial Accounting Standards Board amended its standards to (i) require that the service cost component of net benefit cost associated with pension and postretirement plans be reported in the same line item in which the related employees’ compensation cost is reported and (ii) specify that only the service cost component is eligible for capitalization. The other components of net benefit cost, which may not be capitalized, are to be presented separately. This new guidance, which is to be applied retrospectively, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United) and early adoption is permitted. The adoption of this amendment will result in a reclassification of certain net benefit cost components from compensation and benefits expense to other non-interest expense.

Income Taxes

People’s United’s effective income tax rate was 31.0% for the nine months ended September 30, 2017 compared to 32.4% for the full-year of 2016. Effective January 1, 2017, People’s United adopted new stock-based compensation accounting rules, which require the income tax effects of vestings and exercises be recognized in income tax expense. As a result, the Company realized windfall income tax benefits totaling $1.3 million for the nine months ended September 30, 2017. This amount, which was recognized as a discrete period income tax benefit, served to lower People’s United’s year-to-date effective income tax rate by 0.05%. See Note 14 to the Consolidated Financial Statements for additional information. People’s United’s effective income tax rate for the full-year 2017 is expected to be approximately 31%. 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.

FINANCIAL CONDITION

General

Total assets at September 30, 2017 were $44.0 billion, a $3.4 billion increase from December 31, 2016, primarily reflecting increases of $2.6 billion in total loans, $419 million in goodwill and $176 million in total securities. The increase in total loans from December 31, 2016 to September 30, 2017 reflects increases of $2.1 billion in commercial loans and $534 million in retail loans. Originated loans increased $607 million from December 31, 2016 to $29.7 billion (commercial loans increased $232 million and retail loans increased $375 million) and acquired loans increased $2.0 billion. At the respective acquisition dates, the fair value of Suffolk’s and LEAF’s loans totaled $1.6 billion and $718 million, respectively. At September 30, 2017, the carrying amount of the acquired loan portfolio totaled $2.6 billion. The increase in total securities primarily reflects net purchases of government sponsored enterprise (“GSE”) mortgage-backed securities and municipal bonds, partially offset by sales and paydowns of U.S. Treasury securities and CMOs.

Non-performing assets (excluding acquired non-performing loans) totaled $190.7 million at September 30, 2017, a $23.4 million increase from December 31, 2016, primarily reflecting increases in non-performing equipment financing loans of $14.7 million and non-performing commercial real estate loans of $14.4 million, partially offset by a $6.6 million decrease in non-performing commercial and industrial loans. At September 30, 2017, acquired non-performing loans totaled $26.6 million compared to $24.7 million at December 31, 2016. The allowance for loan losses totaled $233.4 million ($229.2 million on originated loans and $4.2 million on acquired loans) at September 30, 2017, compared to $229.3 million ($223.0 million on originated loans and $6.3 million on acquired loans) at December 31, 2016. At September 30, 2017, the originated allowance for loan losses as a percentage of originated loans was 0.77% and as a percentage of originated non-performing loans was 131.6%, compared to 0.77% and 150.6%, respectively, at December 31, 2016.

85

At September 30, 2017, total liabilities were $38.3 billion, a $2.8 billion increase from December 31, 2016, primarily reflecting increases of $2.7 billion in total deposits and $87 million in total borrowings, partially offset by a $124 million decrease in notes and debentures. At the acquisition date, the fair value of Suffolk’s deposits totaled $1.9 billion. The decrease in notes and debentures reflects the repayment of the $125 million 5.80% fixed-rate/floating-rate subordinated notes in February 2017.

People’s United’s total stockholders’ equity was $5.7 billion at September 30, 2017, a $604 million increase from December 31, 2016. As a percentage of total assets, stockholders’ equity was 13.1% and 12.7% at September 30, 2017 and December 31, 2016, respectively. Tangible common equity equaled 7.1% of tangible assets at September 30, 2017 compared to 7.2% at December 31, 2016 (see Stockholders Equity and Dividends).

People’s United’s (consolidated) Tier 1 Leverage capital ratio and its Common Equity Tier 1 (“CET 1”), Tier 1 and Total risk-based capital ratios were 8.3%, 9.5%, 10.2% and 12.0%, respectively, at September 30, 2017, compared to 8.4%, 9.9%, 10.7% and 12.5%, respectively, at December 31, 2016. The Bank’s Tier 1 Leverage capital ratio and its CET 1, Tier 1 and Total risk-based capital ratios were 8.6%, 10.6%, 10.6% and 12.6%, respectively, at September 30, 2017, compared to 8.9%, 11.3%, 11.3% and 13.3%, respectively, at December 31, 2016 (see Regulatory Capital Requirements).

Loans

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.

The following tables summarize People’s United’s loan portfolios:

Commercial Real Estate

	September 30,		December 31,
(in millions)	2017		2016
Property Type:
Residential (multi-family)	$	3,984.8	$	3,790.1
Retail		2,874.4		2,530.1
Office buildings		2,187.7		2,173.7
Industrial/manufacturing		635.7		604.9
Hospitality/entertainment		607.9		548.9
Health care		382.7		124.5
Mixed/special use		245.6		220.3
Self storage		174.0		170.3
Land		52.9		41.8
Other		34.8		42.7
Total commercial real estate	$	11,180.5	$	10,247.3

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Commercial and Industrial

	September 30,		December 31,
(in millions)	2017		2016
Industry:
Service	$	1,512.7	$	1,392.8
Finance and insurance		1,450.7		1,520.8
Manufacturing		1,355.4		1,111.4
Wholesale distribution		1,086.8		1,084.2
Real estate, rental and leasing		811.3		584.7
Retail sales		783.8		741.9
Health services		731.5		899.4
Transportation/utility		301.2		252.5
Construction		242.0		194.1
Arts/entertainment/recreation		139.6		131.4
Information/media		103.1		95.5
Public administration		58.3		56.6
Mining, oil and gas		8.4		9.0
Other		39.9		50.8
Total commercial and industrial	$	8,624.7	$	8,125.1

Equipment Financing

	September 30,		December 31,
(in millions)	2017		2016
Industry:
Transportation/utility	$	1,102.8	$	1,088.3
Construction		481.2		410.0
Rental and leasing		425.5		422.3
Service		313.7		79.0
Manufacturing		221.7		139.7
Printing		204.0		197.8
Waste		181.8		186.0
Wholesale distribution		176.5		145.8
Health services		149.8		57.2
Packaging		109.2		135.2
Mining, oil and gas		52.8		51.8
Other (1)		286.6		119.4
Total equipment financing	$	3,705.6	$	3,032.5

(1) Increase from December 31, 2016 reflects the August 1, 2017 acquisition of LEAF. The Company is currently reviewing LEAF’s portfolio in order to determine appropriate industry type classification.

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Residential Mortgage

	September 30,		December 31,
(in millions)	2017		2016
Adjustable-rate	$	5,948.4	$	5,549.1
Fixed-rate		832.6		667.6
Total residential mortgage	$	6,781.0	$	6,216.7

Home Equity and Other Consumer

(in millions)	September 30, 2017		December 31, 2016
Home equity lines of credit	$	1,824.2	$	1,883.3
Home equity loans		217.3		189.3
Other		51.2		50.7
Total home equity and other consumer	$	2,092.7	$	2,123.3

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.

Certain loans whose terms have been modified are considered troubled debt restructurings (“TDRs”). Purchased credit impaired (“PCI”) loans (see Note 4 to the Consolidated Financial Statements) that are modified are not considered for TDR classification provided they are evaluated for impairment on a pool basis. 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.

Guidance issued by the Office of the Comptroller of the Currency 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 September 30, 2017 are $23.1 million of such loans. Of this amount, $18.6 million, or 81%, 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 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.

During the nine months ended September 30, 2017, we performed 66 loan modifications that were not classified as TDRs. The balances of the loans at the time of the respective modifications totaled $83.2 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.

Portfolio Risk Elements—Residential Mortgage Lending

People’s United does not actively engage in subprime mortgage lending that has, historically, 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 September 30, 2017, the loan portfolio included $1.3 billion of interest-only residential mortgage loans. 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 September 30, 2017, non-performing residential mortgage loans totaling $0.2 million had current LTV ratios of more than 100%. At September 30, 2017, the weighted average LTV ratio and FICO score for the residential mortgage loan portfolio were 63.1% and 758, respectively.

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.

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During the nine months ended September 30, 2017, the Company repurchased one residential mortgage loan from a GSE and other parties that we had previously sold to the GSE and other parties. The balance of the loan at the time of the repurchase totaled $0.1 million and related fees and expenses incurred totaled less than $0.1 million. During that same time period, the Company issued 23 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 $0.2 million as of September 30, 2017.

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 current economic conditions; (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 home equity lines of credit (“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.

The following table sets forth, as of September 30, 2017, the committed amount of HELOCs scheduled to have the draw period end during the years shown:

December 31, (in millions)	Credit Lines
2017	$	56.3
2018		243.2
2019		115.1
2020		185.2
2021		308.0
2022		479.2
Later years		2,189.3
Total	$	3,576.3

Approximately 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.

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Delinquency statistics for the HELOC portfolio as of September 30, 2017 are as follows:

	Portfolio		Delinquencies
(dollars in millions)	Balance		Amount		Percent
HELOC status:
Still in draw period	$	1,584.7	$	7.5		0.48	%
Amortizing payment		239.5		12.3		5.26

For the three months ended September 30, 2017, 42% 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 September 30, 2017, full and complete first lien position data was not readily available for 29% 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 September 30, 2017, the portion of the home equity portfolio more than 90 days past due with a CLTV greater than 80% was $4.5 million.

As of September 30, 2017, full and complete first lien position data was readily available for 71%, or $1.4 billion, of the home equity portfolio. Of that total, 38%, or $552.0 million, are in a junior lien position. We estimate that of those junior liens, 35%, or $193.2 million, are held or serviced by others.

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 September 30, 2017, there were 29 loans totaling $2.4 million for which we have received notification that the holder of a superior lien has commenced foreclosure action. For 17 of the loans (totaling $1.7 million), our second lien position was performing at the time such foreclosure action was commenced. The total estimated loss related to those 17 loans was $0.2 million as of September 30, 2017. 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 65% as of September 30, 2017.

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 September 30, 2017, 93% of the portfolio balance relates to originations that occurred since 2005, which is generally recognized as the peak of the last 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.

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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 September 30, 2017, the weighted average CLTV ratio and FICO score for the home equity portfolio were 58.6% and 760, 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 that 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.

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 on 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 $616.9 million (2% of total loans) at September 30, 2017. The total committed amount at that date, including both the outstanding balance and the unadvanced portion of such loans, was $909.3 million. In some cases, a portion of the total committed amount includes an accompanying interest reserve. At September 30, 2017, construction loans totaling $279.0 million had remaining available interest reserves of $24.6 million. At that date, the Company had no construction loans with interest reserves 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 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 $5.2 million of restructured construction loans at September 30, 2017.

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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.

Allowance and Provision for Loan Losses

Originated 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: (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 loans classified as TDRs.

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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 loss-given-default data, both derived using an appropriate look back 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 establishing 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 this manner, historical portfolio experience, as described above, 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. 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 our approach to determining the qualitative component of the related allowance for loan losses during the nine months ended September 30, 2017.

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.

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.

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.), 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.

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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. 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 our approach to determining the qualitative component of the related allowance for loan losses during the nine months ended September 30, 2017.

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) 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 the first nine months of 2017. 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 nine months ended September 30, 2017.

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Acquired Portfolio

Loans acquired in a business combination are initially recorded at fair value with no carryover of an acquired entity’s previously established 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 evaluated upon acquisition and classified as either purchased performing or PCI, which represents those acquired loans with specific evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required principal and interest payments will not be collected. PCI 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.

For purchased performing loans, the required allowance for loan losses is determined in a manner similar to that for originated loans with a provision for loan losses only recorded when the required allowance for loan losses exceeds any remaining purchase discount at the loan level. For PCI loans, 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 loans in each pool. A decrease in the expected cash flows in subsequent periods requires the establishment of an allowance for loan losses at that time. At September 30, 2017 and December 31, 2016, the allowance for loan losses on acquired loans was $4.2 million and $6.3 million, respectively.

Under the accounting model for PCI 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 level yield method. Accordingly, PCI loans are not subject to classification as non-accrual in the same manner as other loans. Rather, PCI 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 PCI 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.

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

	Three Months Ended									Nine Months Ended
(dollars in millions)	Sept. 30, 2017			June 30, 2017			Sept. 30, 2016			Sept. 30, 2017			Sept. 30, 2016
Allowance for loan losses on originated loans:
Balance at beginning of period	$	227.9		$	225.0		$	213.0		$	223.0		$	202.9
Charge-offs		(5.8	)		(6.7	)		(3.8	)		(17.1	)		(17.3	)
Recoveries		1.5			1.8			1.4			5.5			4.1
Net loan charge-offs		(4.3	)		(4.9	)		(2.4	)		(11.6	)		(13.2	)
Provision for loan losses		5.6			7.8			8.4			17.8			29.3
Balance at end of period	$	229.2		$	227.9		$	219.0		$	229.2		$	219.0
Allowance for loan losses on acquired loans:
Balance at beginning of period	$	3.7		$	6.3		$	7.4		$	6.3		$	8.1
Charge-offs		(1.0	)		(1.9	)		(0.1	)		(2.9	)		(0.4	)
Recoveries		0.1			—			—			0.1			—
Net loan charge-offs		(0.9	)		(1.9	)		(0.1	)		(2.8	)		(0.4	)
Provision for loan losses		1.4			(0.7	)		—			0.7			(0.4	)
Balance at end of period	$	4.2		$	3.7		$	7.3		$	4.2		$	7.3
Originated commercial allowance for loan losses as a percentage of originated commercial loans		0.94	%		0.94	%		0.94	%		0.94	%		0.94	%
Originated retail allowance for loan losses as a percentage of originated retail loans		0.35			0.35			0.30			0.35			0.30
Total originated allowance for loan losses as a percentage of:
Originated loans		0.77			0.77			0.76			0.77			0.76
Originated non-performing loans		131.6			128.1			142.0			131.6			142.0

The provision for loan losses on originated loans totaled $5.6 million for the three months ended September 30, 2017, reflecting $4.3 million in net loan charge-offs and a $3.1 million increase in the originated allowance for loan losses in response to portfolio-specific risk factors and loan growth. The provision for loan losses on originated loans totaled $8.4 million for the year-ago period, reflecting $2.4 million in net loan charge-offs and a $6.7 million increase in the originated allowance for loan losses in response to portfolio-specific risk factors and loan growth. The provision for loan losses on acquired loans for the three months ended September 30, 2017 reflects loan impairment.

Management believes that the level of the allowance for loan losses at September 30, 2017 is appropriate to cover probable 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.

97

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. 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.

Net Loan Charge-Offs

	Three Months Ended						Nine Months Ended
(in millions)	Sept. 30, 2017		June 30, 2017		Sept. 30, 2016		Sept. 30, 2017		Sept. 30, 2016
Commercial:
Commercial real estate	$	1.5	$	1.2	$	0.2	$	2.7	$	0.8
Commercial and industrial		2.0		1.8		0.4		4.6		3.7
Equipment financing		0.5		2.7		1.3		3.7		5.0
Total		4.0		5.7		1.9		11.0		9.5
Retail:
Residential mortgage		0.1		0.1		0.4		0.3		1.1
Home equity		0.9		0.7		0.1		2.7		2.7
Other consumer		0.2		0.3		0.1		0.4		0.3
Total		1.2		1.1		0.6		3.4		4.1
Total net loan charge-offs	$	5.2	$	6.8	$	2.5	$	14.4	$	13.6

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

	Three Months Ended									Nine Months Ended
	Sept. 30, 2017			June 30, 2017			Sept. 30, 2016			Sept. 30, 2017			Sept. 30, 2016
Commercial:
Commercial real estate		0.05	%		0.04	%		0.01	%		0.03	%		0.01	%
Commercial and industrial		0.09			0.09			0.02			0.07			0.06
Equipment financing		0.06			0.37			0.17			0.16			0.22
Retail:
Residential mortgage		0.01			0.01			0.03			0.01			0.03
Home equity		0.18			0.13			0.02			0.17			0.17
Other consumer		1.43			1.66			1.23			0.95			1.03
Total portfolio		0.06	%		0.09	%		0.04	%		0.06	%		0.06	%

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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 September 30, 2017 or December 31, 2016.

Non-Performing Assets

(dollars in millions)	Sept. 30, 2017			June 30, 2017			March 31, 2016			Dec. 31, 2016			Sept. 30, 2016
Originated non-performing loans:
Commercial:
Commercial real estate	$	36.7		$	42.9		$	23.4		$	22.3		$	23.4
Commercial and industrial		34.9			40.2			47.4			41.5			40.0
Equipment financing		54.1			48.2			47.4			39.4			46.0
Total		125.7			131.3			118.2			103.2			109.4
Retail:
Residential mortgage		33.8			30.8			26.3			27.4			28.2
Home equity		14.8			15.8			15.2			17.4			16.5
Other consumer		—			—			—			—			—
Total		48.6			46.6			41.5			44.8			44.7
Total originated non-performing loans (1)		174.3			177.9			159.7			148.0			154.1
REO:
Residential		4.7			6.7			10.9			8.1			7.9
Commercial		6.3			4.3			4.1			4.0			11.2
Total REO		11.0			11.0			15.0			12.1			19.1
Repossessed assets		5.4			9.2			8.2			7.2			6.9
Total non-performing assets	$	190.7		$	198.1		$	182.9		$	167.3		$	180.1
Originated non-performing loans as a percentage of originated loans		0.59	%		0.60	%		0.55	%		0.51	%		0.54	%
Non-performing assets as a percentage of:
Originated loans, REO and repossessed assets		0.64			0.67			0.63			0.57			0.63
Tangible stockholders’ equity and originated allowance for loan losses		5.60			5.65			5.57			5.19			5.98

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(1) Reported net of government guarantees totaling: $4.0 million at September 30, 2017; $4.2 million at June 30, 2017; $4.4 million at March 31, 2017; $13.1 million at December 31, 2016; and $13.0 million at September 30, 2016. 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 September 30, 2017, the principal loan classes to which these government guarantees relate are commercial and industrial loans (95%) and commercial real estate loans (5%).

The preceding table excludes acquired loans that are (i) accounted for as PCI loans or (ii) covered by an FDIC loss-share agreement (“LSA”) totaling: $24.5 million at September 30, 2017; $25.1 million at June 30, 2017; $22.1 million at March 31, 2017; $24.7 million at December 31, 2016; and $24.6 million at September 30, 2016. 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. Accordingly, such 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. In addition, the table excludes purchased performing loans totaling $2.1 million at September 30, 2017 and $1.3 million at June 30, 2017, of which $0.5 million and $1.3 million, respectively, became non-performing subsequent to acquisition.

Total non-performing assets increased $23.4 million from December 31, 2016 and equaled 0.64% of originated loans, real estate owned (“REO”) and repossessed assets at September 30, 2017. The increase in total non-performing assets from December 31, 2016 reflects increases in non-performing equipment financing loans of $14.7 million, non-performing commercial real estate loans of $14.4 million and non-performing residential mortgage loans of $6.4 million, partially offset by decreases in non-performing commercial and industrial loans of $6.6 million, non-performing home equity loans of $2.6 million, repossessed assets of $1.8 million, and REO of $1.1 million.

All loans and REO acquired in the Butler Bank acquisition are subject to an FDIC LSA (expiring in 2020), 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 non-performing loans discussed above, People’s United has also identified $596.5 million in potential problem loans at September 30, 2017 (all of which are included in the originated portfolio). 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 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 September 30, 2017, potential problem loans consisted of equipment financing loans ($263.5 million), commercial and industrial loans ($230.4 million) and commercial real estate loans ($102.6 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 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.

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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.

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.

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 September 30, 2017, People’s United (parent company) liquid assets included $250 million in cash and $84 million in debt securities available for sale, while the Bank’s liquid assets included $3.1 billion in debt securities available for sale and $467 million in cash and cash equivalents. Securities available for sale with a fair value of $2.92 billion at September 30, 2017 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 $32.5 billion at September 30, 2017 and represented 75% 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 $4.1 billion and $906 million, respectively, at September 30, 2017, representing 10% and 2%, respectively, of total funding at that date.

The Bank’s current available sources of borrowings include: federal funds purchased, advances from the Federal Home Loan Bank (the “FHLB”) of Boston and the Federal Reserve Bank of New York (the “FRB-NY”), and repurchase agreements. At September 30, 2017, the Bank’s total borrowing capacity from (i) the FHLB of Boston and the FRB-NY for advances and (ii) repurchase agreements was $10.6 billion based on the level of qualifying collateral available for these borrowings. In addition, the Bank had unsecured borrowing capacity of $1.0 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 loans lines of credit and commercial real estate loans).

At September 30, 2017, the Bank had outstanding commitments to originate loans totaling $1.4 billion and approved, but unused, lines of credit extended to customers totaling $6.6 billion (including $2.1 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.

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Stockholders’ Equity and Dividends

People’s United’s total stockholders’ equity was $5.75 billion at September 30, 2017, a $604.2 million increase from December 31, 2016. This increase primarily reflects: (i) shares issued in the Suffolk acquisition with a fair value of $484.8 million; (ii) net income of $230.9 million for the nine months ended September 30, 2017; (iii) net stock option and restricted stock-related transactions during the nine months ended September 30, 2017 totaling $38.2 million; and (iv) a $25.3 million decrease in accumulated other comprehensive loss (“AOCL”) since December 31, 2016, partially offset by common dividends paid of $169.3 million in the nine months ended September 30, 2017. As a percentage of total assets, stockholders’ equity was 13.1% and 12.7% at September 30, 2017 and December 31, 2016, respectively. Tangible common equity equaled 7.1% of tangible assets at September 30, 2017 compared to 7.2% at December 31, 2016.

In October 2017, People’s United’s Board of Directors declared a quarterly dividend on its common stock of $0.1725 per share. The dividend is payable on November 15, 2017 to shareholders of record on November 1, 2017. Also in October 2017, People’s United’s Board of Directors declared a dividend on its preferred stock, payable on December 15, 2017 to preferred shareholders of record as of December 1, 2017. In July 2017, the Bank paid a cash dividend of $73 million to People’s United (parent company).

Regulatory Capital Requirements

On January 1, 2015, both People’s United and the Bank became subject to new capital rules (the “Basel III capital rules”) issued by U.S. banking agencies. When fully phased-in on January 1, 2019, the Basel III capital rules will require U.S. financial institutions to maintain: (i) a minimum ratio of CET 1 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% CET 1 risk-based capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum CET 1 risk-based capital ratio of 7.0% upon full implementation); (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 risk-based capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum Tier 1 risk-based 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 risk-based capital ratio as that buffer is phased-in beginning in 2016, effectively resulting in a minimum Total risk-based capital ratio of 10.5% upon full implementation); and (iv) a minimum Tier 1 Leverage capital ratio of at least 4.0%, calculated as the ratio of Tier 1 capital to average total assets, as defined.

In order to avoid limitations on distributions, including dividend payments, and certain discretionary bonus payments, a financial institution must hold a capital conservation buffer above its minimum risk-based capital requirements. For 2017, the capital conservation buffer is 1.25%. The capital conservation buffer increases for each year during the phase-in period as follows: 1.875% in 2018; and 2.5% in 2019.

The following is a summary of 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 September 30, 2017 and December 31, 2016 are based on the capital conservation buffer 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 CET 1 capital. At September 30, 2017, People’s United’s and the Bank’s total risk-weighted assets, as defined, were both $33.0 billion, compared to $30.5 billion for both at December 31, 2016. Management currently estimates that, as of September 30, 2017, both the Company’s and the Bank’s risk-based capital ratios could be negatively impacted by as much as 10-20 basis points on a “fully phased-in” basis.

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						Minimum Capital Required					Classifiaction as
	As of September 30, 2017					Basel III Phase-In (2017)					Well-Capitalized
(dollars in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 Leverage Capital (1):
People’s United	$	3,381.1		8.3	%	$	1,634.8		4.0	%		N/A		N/A
Bank		3,508.4		8.6			1,631.1		4.0		$	2,038.8		5.0	%
CET 1 Risk-Based Capital (2):
People’s United		3,137.1		9.5			1,899.2		5.750			N/A		N/A
Bank		3,508.4		10.6			1,896.4		5.750			2,143.8		6.5
Tier 1 Risk-Based Capital (3):
People’s United		3,381.1		10.2			2,394.6		7.250			1,981.8		6.0
Bank		3,508.4		10.6			2,391.1		7.250			2,638.5		8.0
Total Risk-Based Capital (4):
People’s United		3,964.3		12.0			3,055.2		9.250			3,302.9		10.0
Bank		4,144.1		12.6			3,050.8		9.250			3,298.1		10.0
						Minimum Capital Required					Classifiaction as
	As of December 31, 2016					Basel III Phase-In (2016)					Well-Capitalized
(dollars in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tier 1 Leverage Capital (1):
People’s United	$	3,256.1		8.4	%	$	1,546.7		4.0	%		N/A		N/A
Bank		3,430.5		8.9			1,537.0		4.0		$	1,921.2		5.0	%
CET 1 Risk-Based Capital (2):
People’s United		3,012.0		9.9			1,981.7		5.125			N/A		N/A
Bank		3,430.5		11.3			1,969.2		5.125			2,497.6		6.5
Tier 1 Risk-Based Capital (3):
People’s United		3,256.1		10.7			2,023.3		6.625			1,832.4		6.0
Bank		3,430.5		11.3			2,019.9		6.625			2,439.1		8.0
Total Risk-Based Capital (4):
People’s United		3,802.9		12.5			2,634.1		8.625			3,054.0		10.0
Bank		4,062.1		13.3			2,629.7		8.625			3,048.9		10.0

(1) Tier 1 Leverage Capital ratio represents CET 1 Capital plus Additional Tier 1 Capital instruments (together, “Tier 1 Capital”) divided by Average Total Assets (less goodwill, other acquisition-related intangibles and other deductions from CET 1 Capital).

(2) CET 1 Risk-Based 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 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.

U.S. banking agencies recently released proposals for comment intended to simplify certain aspects of the regulatory capital rules and to extend the regulatory capital treatment of certain transition items. Management does not expect the impact of these proposals to have a material effect on the Company’s or the Bank’s risk-based capital ratios.

103

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.

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 spreads 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.

The following tables set forth the estimated percent change in the Company’s net interest income at risk over one-year simulation periods beginning September 30, 2017 and December 31, 2016. Given the interest rate environment at those dates, simulations for interest rate declines of more than 100 basis points were not modeled.

	Estimated Percent Change in
Parallel Shock Rate Change	Net Interest Income
(basis points)	September 30, 2017			December 31, 2016
+300		10.3	%		10.1	%
+200		7.3			7.3
+100		3.9			4.0
-100		(6.0	)		n/a

104

	Estimated Percent Change in
Yield Curve Twist Rate Change	Net Interest Income
(basis points)	September 30, 2017			December 31, 2016
Short End -100		(2.8	)%		n/a	%
Short End +100		1.8			1.7
Short End +200		3.4			3.3
Long End -100		(3.0	)		(3.4	)
Long End +100		2.2			2.3
Long End +200		4.2			4.3

The net interest income at risk simulation results indicate that at both September 30, 2017 and December 31, 2016, 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 43% of the Company’s loan portfolio being comprised of Prime rate and one-month Libor-based loans.

The Company’s asset sensitivity is essentially unchanged since December 31, 2016, as the benefits from (i) fewer loans with “in the money floors” (as both the Prime rate and one-month Libor rate have risen) and (ii) higher core deposit balances were largely offset by (i) the addition of LEAF’s fixed-rate portfolio in August 2017 and (ii) securities purchases. The acquisition of Suffolk in April 2017 did not have a material impact on the Company’s net interest income at risk position. Based on the Company’s IRR position at September 30, 2017, an immediate 100 basis point parallel increase in interest rates translates to an approximate $48 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 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 current spot interest rate curve is shocked up and down to generate new spot interest rate curves for parallel rate shock scenarios. These new spot curves are then used to re-calculate economic value of equity at risk for these rate shock scenarios.

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 September 30, 2017 and December 31, 2016, simulations for interest rate declines of more than 100 basis points were not modeled.

Parallel Shock Rate Change (basis points)	Estimated Percent Change in
	Economic Value of Equity
	September 30, 2017			December 31, 2016
+300		(9.4	)%		(7.7	)%
+200		(4.3	)		(3.1	)
+100		(0.7	)		(0.1	)
-100		(3.9	)		n/a

105

The Company’s economic value of equity at risk profile indicates that at September 30, 2017, the Company’s economic value of equity is moderately liability sensitive in a rising rate environment. The increase since December 31, 2016 primarily reflects: (i) an increase in the residential mortgage loan portfolio; (ii) extending asset duration resulting from purchases of mortgage-backed and state and municipal securities; and (iii) the acquisition of LEAF’s fixed-rate portfolio. The Suffolk acquisition did not have a material impact to the Company’s economic value of equity at risk position.

People’s United’s IRR position at September 30, 2017, 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 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 funded mainly by less rate-sensitive deposits. From an economic value of equity perspective, in a rising rate environment, the Company’s assets are more price sensitive than its liabilities due to slightly longer asset duration, which serves to create a moderately liability sensitive risk position. 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 September 30, 2017, 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 September 30, 2017, People’s United used interest rate swaps to manage IRR associated with certain interest-bearing assets and interest-bearing liabilities.

The Bank has entered into pay floating/receive fixed interest rate swaps to reduce its IRR exposure to the variability in interest cash flows on certain floating-rate commercial loans. The Bank has agreed with the swap counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated based on notional amounts totaling $210 million. The floating-rate interest payments made under the swaps are calculated using the same floating rate received on the commercial loans. The swaps effectively convert the floating-rate one-month LIBOR interest payments received on the commercial loans to a fixed rate and consequently reduce the Bank’s exposure to variability in short-term interest rates. These swaps are accounted for as cash flow hedges.

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.

106

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.

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 13 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). There were no derivative instruments with such credit-related contingent features in a net liability position at September 30, 2017.

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
	Cash Flow			Fair Value
As of September 30, 2017 (dollars in millions)	Hedge			Hedge
Notional principal amounts	$	210.0		$	375.0		$	42.6
Weighted average interest rates:
Pay floating (receive fixed)		0.78% (1.82%	)		Libor +1.265% (4.00%	)		n/a
Weighted average remaining term to maturity (in months)		37			82			2
Fair value:
Recognized as an asset	$	—		$	—		$	0.2
Recognized as a liability		—			—			0.2

107

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

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

	Interest Rate Swaps/Caps
	Commercial			Institutional
As of September 30, 2017 (dollars in millions)	Customers			Counterparties
Notional principal amounts	$	6,101.2		$	5,808.2
Weighted average interest rates:
Pay floating (receive fixed)		1.41% (1.94%	)		—
Pay fixed (receive floating)		—			1.83% (1.41%	)
Weighted average remaining term to maturity (in months)		78			78
Fair value:
Recognized as an asset	$	91.5		$	10.4
Recognized as a liability		39.7			20.8

As a result of the LEAF acquisition, the Company assumed two interest-rate caps with a total notional amount of $150 million, both of which mature in December 2017. Prior to the acquisition, LEAF entered into derivative contracts to reduce potential volatility in its financing costs and to manage its interest rate exposure to changes in one-month LIBOR. Subsequent to the LEAF acquisition, hedge accounting was not applied for these derivatives. Such interest rate caps have been excluded from the tables above.

See Notes 12 and 13 to the Consolidated Financial Statements for further information relating to derivatives.

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

The information required by this item appears on pages 104 through 108 of this report.

Item 4 – 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 September 30, 2017, 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 September 30, 2017, 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.

108

Part II – Other Information

Item 1 – 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.

Item 1A – Risk Factors

There have been no material changes in risk factors since December 31, 2016.

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

(c) The following table provides information with respect to purchases made by People’s United of its common stock during the three months ended September 30, 2017:

Issuer Purchases of Equity Securities

					Total number of		Maximum number
					shares purchased as		of shares that may
	Total number		Average		part of publicly		yet be purchased
	of shares		price paid		announced plans		under the plans
Period	purchased		per share		or programs		or programs
July 1 - 31, 2017:
Tendered by employees (1)		—	$	—		—		—
August 1 - 31, 2017:
Tendered by employees (1)		271	$	17.55		—		—
September 1 - 30, 2017:
Tendered by employees (1)		4,564	$	16.82		—		—
Total:
Tendered by employees (1)		4,835	$	16.86		—		—

(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 Global Select 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.

Item 3 – Defaults Upon Senior Securities

None.

Item 4 – Mine Safety Disclosures

None.

109

Item 5 – Other Information

None.

Item 6 – Exhibits

The following Exhibits are filed herewith:

Designation	Description
31.1	Rule 13a-14(a)/15d-14(a) Certifications
31.2	Rule 13a-14(a)/15d-14(a) Certifications
32	Section 1350 Certifications
101.1	The following financial information from People’s United Financial, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 formatted in XBRL: (i) Consolidated Statements of Condition as of September 30, 2017 and December 31, 2016; (ii) Consolidated Statements of Income for the three and nine months ended September 30, 2017 and 2016; (iii) Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2017 and 2016; (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016; and (vi) Notes to Consolidated Financial Statements.

110

INDEX TO EXHIBITS

Designation	Description
31.1	Rule 13a-14(a)/15d-14(a) Certifications
31.2	Rule 13a-14(a)/15d-14(a) Certifications
32	Section 1350 Certifications
101.1	The following financial information from People’s United Financial, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 formatted in XBRL: (i) Consolidated Statements of Condition as of September 30, 2017 and December 31, 2016; (ii) Consolidated Statements of Income for the three and nine months ended September 30, 2017 and 2016; (iii) Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2017 and 2016; (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016; and (vi) Notes to Consolidated Financial Statements.

111

SIGNATURES

Pursuant to the requirements 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: November 9, 2017	By:	/s/ John P. Barnes
		John P. Barnes
		President and Chief Executive Officer
		(Principal Executive Officer)
Date: November 9, 2017	By:	/s/ R. David Rosato
		R. David Rosato
		Senior Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
Date: November 9, 2017	By:	/s/ Jeffrey Hoyt
		Jeffrey Hoyt
		Senior Vice President and Chief Accounting Officer
		(Principal Accounting Officer)

112

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 Quarterly Report on Form 10-Q 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: November 9, 2017	/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 Quarterly Report on Form 10-Q 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: November 9, 2017	/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”), a Delaware corporation, does hereby certify, to the best of such officer’s knowledge, that:

1. The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2017 (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 September 30, 2017.

This Certification is made effective as of the date the Report is filed with the Securities and Exchange Commission.

Date: November 9, 2017	/s/ John P. Barnes
	John P. Barnes
	Principal Executive Officer
Date: November 9, 2017	/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.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	PBCT
Entity Registrant Name	People's United Financial, Inc.
Entity Central Index Key	0001378946
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		346,251,605

XML

Consolidated Statements of Condition - (Unaudited) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 414.1	$ 432.4
Short-term investments (note 3)	302.5	181.7
Total cash and cash equivalents	716.6	614.1
Securities (note 3):
Trading account securities, at fair value	8.3	6.8
Securities available for sale, at fair value	3,197.5	4,409.9
Securities held to maturity, at amortized cost (fair value of $3.44 billion and $2.01 billion)	3,387.6	2,005.4
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	320.9	315.8
Total securities	6,914.3	6,737.9
Loans held for sale	15.0	39.3
Loans (note 4):
Total loans	32,384.5	29,744.9
Less allowance for loan losses	(233.4)	(229.3)
Total loans, net	32,151.1	29,515.6
Goodwill (note 7)	2,411.4	1,992.7
Bank-owned life insurance	405.6	349.1
Premises and equipment, net	264.7	244.5
Other acquisition-related intangible assets (note 7)	156.5	149.4
Other assets (notes 1, 4 and 12)	963.0	967.2
Total assets	43,998.2	40,609.8
Deposits:
Non-interest-bearing	7,655.3	6,660.8
Savings	4,513.1	4,397.7
Interest-bearing checking and money market	15,143.1	14,260.1
Time	5,235.8	4,542.2
Total deposits	32,547.3	29,860.8
Borrowings:
Federal Home Loan Bank advances	3,074.1	3,061.1
Federal funds purchased	543.0	617.0
Customer repurchase agreements	295.8	343.3
Other borrowings	231.1	35.4
Total borrowings	4,144.0	4,056.8
Notes and debentures	906.2	1,030.1
Other liabilities (notes 1 and 12)	654.6	520.2
Total liabilities	38,252.1	35,467.9
Commitments and contingencies (notes 1 and 9)
Stockholders' Equity (notes 2, 5 and 8)
Preferred stock ($0.01 par value; 50.0 million shares authorized; 10.0 million shares issued and outstanding at both dates)	244.1	244.1
Common stock ($0.01 par value; 1.95 billion shares authorized; 433.6 million shares and 405.0 million shares issued)	4.3	4.0
Additional paid-in capital	5,972.2	5,446.1
Retained earnings	996.4	949.3
Unallocated common stock of Employee Stock Ownership Plan, at cost (6.7 million shares and 7.0 million shares)	(139.1)	(144.6)
Accumulated other comprehensive loss	(169.7)	(195.0)
Treasury stock, at cost (89.0 million shares and 89.1 million shares)	(1,162.1)	(1,162.0)
Total stockholders' equity	5,746.1	5,141.9
Total liabilities and stockholders' equity	43,998.2	40,609.8
Commercial [Member]
Loans (note 4):
Total loans	23,510.8	21,404.9
Less allowance for loan losses	(203.5)	(204.9)
Retail Loans [Member]
Loans (note 4):
Total loans	8,873.7	8,340.0
Less allowance for loan losses	(29.9)	(24.4)
Commercial Real Estate Loan [Member] | Commercial [Member]
Loans (note 4):
Total loans	11,180.5	10,247.3
Commercial and Industrial [Member] | Commercial [Member]
Loans (note 4):
Total loans	8,624.7	8,125.1
Equipment Financing [Member] | Commercial [Member]
Loans (note 4):
Total loans	3,705.6	3,032.5
Residential Mortgage Loan [Member] | Retail Loans [Member]
Loans (note 4):
Total loans	6,781.0	6,216.7
Home Equity and Other Consumer [Member] | Retail Loans [Member]
Loans (note 4):
Total loans	$ 2,092.7	$ 2,123.3

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Consolidated Statements of Condition - (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Securities held to maturity, at fair value	$ 3,435.6	$ 2,012.6
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	10,000,000	10,000,000
Preferred stock, shares outstanding	10,000,000	10,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,950,000,000	1,950,000,000
Common stock, shares issued	433,600,000	405,000,000
Unallocated common stock of Employee Stock Ownership Plan, shares	6,707,711	7,000,000
Treasury stock, shares	89,000,000	89,100,000

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Consolidated Statements of Income - (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest and dividend income:
Commercial real estate	$ 105.6	$ 85.7	$ 299.5	$ 257.8
Residential mortgage	52.5	45.7	154.1	133.4
Home equity and other consumer	21.0	18.4	59.3	55.4
Total interest on loans	300.6	249.5	836.2	735.7
Securities	37.2	34.2	112.1	103.4
Short-term investments	1.1	0.4	2.7	1.1
Loans held for sale	0.3	0.4	0.7	0.8
Total interest and dividend income	339.2	284.5	951.7	841.0
Interest expense:
Deposits	34.4	25.2	92.4	75.8
Borrowings	12.7	6.1	28.9	16.4
Notes and debentures	7.5	7.9	22.3	23.4
Total interest expense	54.6	39.2	143.6	115.6
Net interest income	284.6	245.3	808.1	725.4
Provision for loan losses (note 4)	7.0	8.4	18.5	28.9
Net interest income after provision for loan losses	277.6	236.9	789.6	696.5
Non-interest income:
Bank service charges	25.3	25.3	73.8	73.8
Investment management fees	16.9	11.6	49.2	34.1
Operating lease income	10.9	11.2	32.1	31.7
Commercial banking lending fees	7.0	7.1	26.7	24.4
Insurance revenue	9.7	9.8	26.3	26.1
Cash management fees	6.8	6.5	19.6	18.8
Brokerage commissions	2.8	3.2	9.2	9.4
Net gains on sales of residential mortgage loans	1.1	1.9	2.7	3.7
Net security (losses) gains (note 3)			(15.6)	0.1
Other non-interest income	8.8	14.2	41.6	36.4
Total non-interest income	89.3	90.8	265.6	258.5
Non-interest expense (note 2):
Compensation and benefits	128.0	116.1	383.6	341.6
Occupancy and equipment	40.2	37.7	118.6	112.6
Professional and outside services	19.2	17.7	62.8	51.5
Regulatory assessments	10.3	9.9	29.8	27.1
Operating lease expense	8.8	9.7	26.3	28.0
Amortization of other acquisition-related intangible assets (note 7)	7.9	5.8	22.1	17.4
Other non-interest expense	22.7	24.5	77.3	73.4
Total non-interest expense	237.1	221.4	720.5	651.6
Income before income tax expense	129.8	106.3	334.7	303.4
Income tax expense (notes 1 and 14)	39.0	32.6	103.8	98.3
Net income	90.8	73.7	230.9	205.1
Preferred stock dividend	3.5		10.5
Net income available to common shareholders	$ 87.3	$ 73.7	$ 220.4	$ 205.1
Earnings per common share (note 6):
Basic	$ 0.26	$ 0.24	$ 0.67	$ 0.68
Diluted	$ 0.26	$ 0.24	$ 0.67	$ 0.68
Commercial and Industrial [Member]
Interest and dividend income:
Interest and fee income	$ 80.0	$ 66.9	$ 218.7	$ 190.0
Equipment Financing [Member]
Interest and dividend income:
Interest and fee income	$ 41.5	$ 32.8	$ 104.6	$ 99.1

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Consolidated Statements of Comprehensive Income - (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 90.8	$ 73.7	$ 230.9	$ 205.1
Other comprehensive income (loss), net of tax:
Net actuarial loss and prior service credit related to pension and other postretirement plans	0.9	0.9	2.8	2.8
Net unrealized gains and losses on securities available for sale	3.6	(1.7)	21.0	52.3
Amortization of unrealized losses on securities transferred to held to maturity	0.6	0.5	1.6	1.5
Net unrealized gains and losses on derivatives accounted for as cash flow hedges	(0.2)	0.2	(0.1)	0.2
Total other comprehensive income (loss), net of tax (note 5)	4.9	(0.1)	25.3	56.8
Total comprehensive income	$ 95.7	$ 73.6	$ 256.2	$ 261.9

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Consolidated Statements of Changes in Stockholders' Equity - (Unaudited) - USD ($) $ in Millions	Total	Preferred Stock [Member]	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, 2015	$ 4,731.6		$ 3.9	$ 5,337.7	$ 880.8	$ (151.8)	$ (177.2)	$ (1,161.8)
Net income	205.1				205.1
Total other comprehensive income, net of tax (note 5)	56.8						56.8
Cash dividends on common stock	(154.1)				(154.1)
Restricted stock and performance-based share awards	7.0			7.1	0.1			(0.2)
Employee Stock Ownership Plan common committed to be released (note 8)	4.0				(1.4)	5.4
Common stock repurchased and retired upon vesting of restricted stock awards	(3.2)				(3.2)
Stock option exercises and related tax benefits	15.1		0.1	15.0
Ending Balance at Sep. 30, 2016	4,862.3		4.0	5,359.8	927.3	(146.4)	(120.4)	(1,162.0)
Beginning Balance at Dec. 31, 2016	5,141.9	$ 244.1	4.0	5,446.1	949.3	(144.6)	(195.0)	(1,162.0)
Net income	230.9				230.9
Total other comprehensive income, net of tax (note 5)	25.3						25.3
Common stock issued in Suffolk Bancorp acquisition (note 2)	484.8		0.2	484.6
Cash dividends on common stock	(169.3)				(169.3)
Cash dividends on preferred stock	(10.5)				(10.5)
Restricted stock and performance-based share awards	9.0			9.1				(0.1)
Employee Stock Ownership Plan common committed to be released (note 8)	4.8				(0.7)	5.5
Common stock repurchased and retired upon vesting of restricted stock awards	(3.3)				(3.3)
Stock option exercises and related tax benefits	32.5		0.1	32.4
Ending Balance at Sep. 30, 2017	$ 5,746.1	$ 244.1	$ 4.3	$ 5,972.2	$ 996.4	$ (139.1)	$ (169.7)	$ (1,162.1)

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Consolidated Statements of Changes in Stockholders' Equity - (Unaudited) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash dividends on common stock, per share	$ 0.5150	$ 0.5075
Retained Earnings [Member]
Cash dividends on common stock, per share	$ 0.5150	$ 0.5075

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities:
Net income	$ 230.9	$ 205.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment	29.3	27.6
Expense related to operating leases	26.3	28.0
Amortization of other acquisition-related intangible assets	22.1	17.4
Provision for loan losses	18.5	28.9
Expense related to share-based awards	13.4	11.4
Employee Stock Ownership Plan common stock committed to be released	4.8	4.0
Net security losses (gains)	15.6	(0.1)
Net gains on sales of residential mortgage loans	(2.7)	(3.7)
Originations of loans held-for-sale	(212.5)	(296.1)
Proceeds from sales of loans held-for-sale	239.5	287.8
Net increase in trading account securities	(1.5)	(0.1)
Excess income tax benefits from stock option exercises (note 14)	1.3
Net changes in other assets and other liabilities	15.3	(23.8)
Net cash provided by operating activities	400.3	286.4
Cash Flows from Investing Activities:
Proceeds from principal repayments and maturities of securities available for sale	456.1	680.2
Proceeds from sales of securities available for sale	1,016.2	249.9
Proceeds from principal repayments and maturities of securities held to maturity	92.1	83.6
Purchases of securities available for sale	(237.6)	(1,228.3)
Purchases of securities held to maturity	(1,235.9)	(286.8)
Net redemptions (purchases) of Federal Reserve Bank stock	17.6	(9.1)
Net purchases of Federal Home Loan Bank stock	(19.9)	(1.0)
Proceeds from sales of loans	8.4	2.8
Loan disbursements, net of principal collections	(325.4)	(944.8)
Purchases of loans		(30.6)
Purchases of premises and equipment	(6.7)	(14.9)
Purchases of leased equipment	(20.5)	(14.3)
Proceeds from sales of real estate owned	8.6	8.0
Return of premium on bank-owned life insurance, net	1.7	1.7
Net cash acquired in acquisitions	28.9
Net cash used in investing activities	(216.4)	(1,503.6)
Cash Flows from Financing Activities:
Net increase in deposits	834.1	1,238.1
Net (decrease) increase in borrowings with terms of three months or less	(279.4)	131.2
Repayments of borrowings with terms of more than three months	(356.1)	(0.2)
Repayment of notes and debentures	(125.0)
Cash dividends paid on common stock	(169.3)	(154.1)
Cash dividends paid on preferred stock	(10.5)
Common stock repurchases	(3.3)	(3.2)
Proceeds from stock options exercised	28.1	10.4
Net cash (used in) provided by financing activities	(81.4)	1,222.2
Net increase in cash and cash equivalents	102.5	5.0
Cash and cash equivalents at beginning of period	614.1	715.3
Cash and cash equivalents at end of period	716.6	720.3
Supplemental Information:
Interest payments	138.4	114.3
Unsettled purchases of securities	110.5	9.7
Income tax payments	100.1	86.1
Real estate properties acquired by foreclosure	9.3	$ 17.9
Assets acquired and liabilities assumed in acquisitions (note 2):
Non-cash assets, excluding goodwill and other acquisition-related intangibles	2,642.1
Liabilities	2,634.1
Common stock issued in Suffolk Bancorp acquisition	$ 484.8

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General

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

NOTE 1. GENERAL

In the opinion of management, the accompanying unaudited consolidated financial statements of People’s United Financial, Inc. (“People’s United” or the “Company”) have been prepared to reflect all adjustments necessary to present fairly the financial position and results of operations as of the dates and for the periods shown. All significant intercompany transactions and balances are eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period 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 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.

Note 1 to People’s United’s audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2016, as supplemented by the Quarterly Reports for the periods ended March 31, 2017 and June 30, 2017 and this Quarterly Report for the period ended September 30, 2017, provides disclosure of People’s United’s significant accounting policies.

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 (“VIEs”), are not consolidated into the Company’s Consolidated Financial Statements. These investments have historically played a role in enabling People’s United Bank, National Association (the “Bank”) to meet its Community Reinvestment Act requirements while, at the same time, providing federal income tax credits.

Affordable housing investments, including all legally binding commitments to fund future investments, are included in other assets in the Consolidated Statements of Condition ($250.0 million and $195.2 million at September 30, 2017 and December 31, 2016, respectively). Included in other liabilities in the Consolidated Statements of Condition is a liability for all legally binding unfunded commitments to fund future investments ($109.6 million and $92.5 million at those dates). 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 $4.2 million and $3.0 million for the three months ended September 30, 2017 and 2016, respectively, and $12.3 million and $8.9 million for the nine months ended September 30, 2017 and 2016, respectively.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) have been omitted or condensed. As a result, the accompanying consolidated financial statements should be read in conjunction with People’s United’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results of operations that may be expected for the entire year or any other interim period.

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Acquisitions

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Acquisitions

NOTE 2 – ACQUISITIONS

LEAF Commercial Capital, Inc.

Effective August 1, 2017, the Bank completed its acquisition of LEAF Commercial Capital, Inc. (“LEAF”) a Philadelphia-based commercial equipment finance company. The fair value of the consideration transferred in the LEAF acquisition consisted of approximately $220 million in cash.

The assets acquired and liabilities assumed in this transaction were recorded by People’s United at their estimated fair values as of the effective date and People’s United’s results of operations for the three and nine months ended September 30, 2017 include the results of LEAF beginning with the effective date. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded as goodwill, which was allocated to the Commercial Banking segment. Merger-related expenses recorded during the nine months ended September 30, 2017 related to the LEAF acquisition totaled $2.2 million, including fees for investment advisory, legal and valuation services.

The acquisition-date estimated fair values of the assets acquired and liabilities assumed in the acquisition of LEAF are summarized as follows:

(in millions)
Assets:
Cash and cash equivalents	$	74.9
Loans		717.9
Goodwill		148.4
Trade name intangible		0.9
Premises and equipment		2.4
Non-compete agreement		0.2
Other assets		13.0
Total assets	$	957.7
Liabilities:
Borrowings	$	708.1
Other liabilities		29.6
Total liabilities	$	737.7
Total purchase price	$	220.0

Prior to the acquisition, and in connection with its previous revolving warehouse debt facilities and term note securitization transactions, LEAF established bankruptcy-remote special-purpose entities (“SPEs”) that issued term debt to institutional investors. These SPEs were VIEs, of which LEAF was deemed the primary beneficiary, and, therefore, the related financings were treated as secured borrowings with the SPEs consolidated in LEAF’s financial statements. Following the Company’s acquisition of LEAF, approximately $460 million of LEAF’s borrowings were repaid prior to September 30, 2017, including all but one remaining securitization, which can be repaid without penalty in 2018.

Net deferred tax assets totaling $3.9 million were established in connection with recording the related purchase accounting adjustments (other than goodwill). Fair value adjustments to assets acquired (other than loans, see Note 4) and liabilities assumed are generally amortized on a straight-line basis over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities.

Suffolk Bancorp

Effective April 1, 2017, People’s United completed its acquisition of Suffolk Bancorp (“Suffolk”) based in Riverhead, New York. The fair value of the consideration transferred in the Suffolk acquisition totaled approximately $485 million and consisted of approximately 26.6 million shares of People’s United common stock. At the acquisition date, Suffolk operated 27 branches in the greater Long Island area.

The assets acquired and liabilities assumed in this transaction were recorded by People’s United at their estimated fair values as of the effective date and People’s United’s results of operations for the nine months ended September 30, 2017 include the results of Suffolk beginning with the effective date. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded as goodwill, which was allocated to the Commercial Banking and Retail Banking segments. Merger-related expenses recorded during the nine months ended September 30, 2017 and 2016 related to the Suffolk acquisition totaled $26.5 million and $1.9 million, respectively, including: (i) fees for investment advisory, legal, accounting and valuation services; (ii) costs associated with contract terminations and branch closings; and (iii) compensatory charges.

The acquisition-date estimated fair values of the assets acquired and liabilities assumed in the acquisition of Suffolk are summarized as follows:

(in millions)
Assets:
Cash and cash equivalents	$	174.0
Securities		167.4
Loans		1,617.5
Goodwill		270.3
Core deposit intangible		28.1
Premises and equipment		40.4
Bank-owned life insurance		54.1
Other real estate owned		0.5
Other assets		28.9
Total assets	$	2,381.2
Liabilities:
Deposits	$	1,852.4
Borrowings		15.1
Other liabilities		28.9
Total liabilities	$	1,896.4
Total purchase price	$	484.8

Net deferred tax liabilities totaling $0.3 million were established in connection with recording the related purchase accounting adjustments (other than goodwill). Fair value adjustments to assets acquired (other than loans, see Note 4) and liabilities assumed are generally amortized on a straight-line basis over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities.

The preceding summaries include adjustments to record the acquired assets and assumed liabilities at their respective fair values based on management’s best estimate using the information available at the time of the respective acquisition. While there may be changes in the respective acquisition-date fair values of certain balance sheet amounts and other items, management does not expect that such changes, if any, will be material.

Fair values of the major categories of assets acquired and liabilities assumed were determined as follows:

Cash and Cash Equivalents

The fair values of cash and cash equivalents approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities.

Securities

The fair values of securities acquired were based on quoted market prices. If a quoted market price for a certain security was not available, then a quoted price for a similar security in active markets was used to estimate fair value.

Loans

Loans acquired in connection with these acquisitions were recorded at fair value with no carryover of either LEAF’s or Suffolk’s previously established allowance for loan losses. Fair value of the loans was 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 flow. The acquired loans were evaluated upon the respective acquisition dates and classified as either purchased performing or purchased credit impaired (“PCI”) (see Note 4).

In the aggregate, loans totaling $57 million were deemed PCI and were recorded at a discount from the corresponding outstanding principal balance of $67 million. The remaining acquired loans were deemed purchased performing and had a fair value of $2.28 billion and an outstanding principal balance of $2.32 billion, resulting in a discount that will be accreted over the remaining lives of the loans. Included in the Consolidated Statements of Income for the nine months ended September 30, 2017 is approximately $44 million of interest income attributable to these acquisitions since the respective acquisition dates.

Core Deposit Intangible

The core deposit intangible represents the value of the relationships with deposit customers. The fair value was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance costs of the deposit base, the alternative cost of funds and the interest cost associated with customer deposits. The core deposit intangible will be amortized using an accelerated amortization method over a 6-year period, reflective of the manner in which the related benefit attributable to the deposits will be recognized.

Deposits

The fair values of acquired savings and transaction deposit accounts were assumed to approximate the respective carrying amounts as these accounts have no stated maturity and are payable on demand. Time deposits were valued based on the present value of the contractual cash flows over the remaining period to maturity using a market rate.

Borrowings

The fair values of Federal Home Loan Bank (“FHLB”) advances and other borrowings, including securitizations, represent contractual repayments discounted using interest rates currently available on borrowings with similar characteristics and remaining maturities.

The following table presents selected unaudited pro forma financial information of the Company reflecting the acquisitions of Suffolk and LEAF assuming the acquisitions were completed as of the beginning of the respective periods:

	Nine Months Ended September 30,
(in millions, except per common share data)	2017		2016
Selected Financial Results:
Net interest income	$	835.9	$	797.3
Provision for loan losses		18.5		28.9
Non-interest income		275.5		275.5
Non-interest expense		720.6		707.1
Net income		258.0		227.7
Net income applicable to common shareholders		247.5		227.7
Basic and diluted earnings per common share	$	0.73	$	0.69

The selected unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the acquisitions actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year period. Merger-related expenses attributable to the acquisitions that were incurred by People’s United, Suffolk and LEAF during the nine months ended September 30, 2017 and 2016 are not reflected in the selected unaudited pro forma financial information. Pro forma basic and diluted earnings per common share (“EPS”) were calculated using People’s United’s actual weighted-average common shares outstanding for the periods presented, plus the incremental common shares issued, assuming the acquisitions occurred at the beginning of the periods presented.

Recent 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 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 (see Note 7).

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 September 30, 2017 and December 31, 2016, tax deductible goodwill totaled $73.2 million and $77.9 million, respectively.

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Securities and Short-Term Investments

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Securities and Short-Term Investments

NOTE 3. SECURITIES AND SHORT-TERM INVESTMENTS

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 September 30, 2017 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	760.9	$	0.1	$	(19.1	)	$	741.9
GSE (1) mortgage-backed securities and CMOs (2)		2,450.1		11.5		(15.0	)		2,446.6
Total debt securities		3,211.0		11.6		(34.1	)		3,188.5
Equity securities (3)		9.6		—		(0.6	)		9.0
Total securities available for sale	$	3,220.6	$	11.6	$	(34.7	)	$	3,197.5
Securities held to maturity:
Debt securities:
State and municipal	$	1,999.2	$	60.7	$	(8.5	)	$	2,051.4
GSE mortgage-backed securities		1,344.6		1.5		(6.5	)		1,339.6
Corporate		42.3		0.8		—			43.1
Other		1.5		—		—			1.5
Total securities held to maturity	$	3,387.6	$	63.0	$	(15.0	)	$	3,435.6

(1) Government sponsored enterprise

(2) Collateralized mortgage obligations

(3) During the quarter ended March 31, 2017, the Company exchanged its ownership interest in a non-marketable equity security (previously recorded in other assets) for cash and common stock in a publicly-traded company (fair value of approximately $10.8 million at acquisition).

As of December 31, 2016 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	889.9	$	0.3	$	(30.5	)	$	859.7
GSE mortgage-backed securities and CMOs		3,573.1		15.0		(38.1	)		3,550.0
Total debt securities		4,463.0		15.3		(68.6	)		4,409.7
Equity securities		0.2		—		—			0.2
Total securities available for sale	$	4,463.2	$	15.3	$	(68.6	)	$	4,409.9
Securities held to maturity:
Debt securities:
State and municipal	$	1,499.1	$	33.9	$	(23.5	)	$	1,509.5
GSE mortgage-backed securities		500.8		—		(3.2	)		497.6
Corporate		4.0		—		—			4.0
Other		1.5		—		—			1.5
Total securities held to maturity	$	2,005.4	$	33.9	$	(26.7	)	$	2,012.6

Securities available for sale with a fair value of $2.92 billion and $1.83 billion at September 30, 2017 and December 31, 2016, respectively, were pledged as collateral for public deposits and for other purposes.

The following table is a summary of the amortized cost and fair value of debt securities as of September 30, 2017, based on remaining period to contractual maturity. Information for GSE mortgage-backed securities and CMOs is based on the final contractual maturity dates without considering repayments and prepayments.

	Available for Sale				Held to Maturity
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Treasury and agency:
Within 1 year	$	1.0	$	1.0	$	—	$	—
After 1 but within 5 years		361.3		355.0		—		—
After 5 but within 10 years		398.6		385.9		—		—
Total		760.9		741.9		—		—
GSE mortgage-backed securities and CMOs:
After 1 but within 5 years		—		—		69.4		69.4
After 5 but within 10 years		604.6		613.9		834.3		830.4
After 10 years		1,845.5		1,832.7		440.9		439.8
Total		2,450.1		2,446.6		1,344.6		1,339.6
State and municipal:
Within 1 year		—		—		18.7		18.7
After 1 but within 5 years		—		—		114.1		117.4
After 5 but within 10 years		—		—		343.2		363.2
After 10 years		—		—		1,523.2		1,552.1
Total		—		—		1,999.2		2,051.4
Corporate:
After 1 but within 5 years		—		—		5.0		5.0
After 5 but within 10 years		—		—		37.3		38.1
Total		—		—		42.3		43.1
Other:
After 1 but within 5 years		—		—		1.5		1.5
Total		—		—		1.5		1.5
Total:
Within 1 year		1.0		1.0		18.7		18.7
After 1 but within 5 years		361.3		355.0		190.0		193.3
After 5 but within 10 years		1,003.2		999.8		1,214.8		1,231.7
After 10 years		1,845.5		1,832.7		1,964.1		1,991.9
Total	$	3,211.0	$	3,188.5	$	3,387.6	$	3,435.6

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 of the issuer. 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.

The following tables summarize those 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 September 30, 2017 (in millions)	Fair Value		Unrealized Losses			Fair   Value		Unrealized   Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE mortgage-backed securities and CMOs	$	1,675.6	$	(12.1	)	$	133.9	$	(2.9	)	$	1,809.5	$	(15.0	)
U.S. Treasury and agency		206.6		(3.0	)		530.1		(16.1	)		736.7		(19.1	)
Equity securities		9.0		(0.6	)		—		—			9.0		(0.6	)
Securities held to maturity:
GSE mortgage-backed securities		1,029.5		(6.5	)		—		—			1,029.5		(6.5	)
State and municipal		270.3		(1.7	)		207.5		(6.8	)		477.8		(8.5	)
Corporate		2.8		—			—		—			2.8		—
Total	$	3,193.8	$	(23.9	)	$	871.5	$	(25.8	)	$	4,065.3	$	(49.7	)

	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months Or Longer					Total
As of December 31, 2016 (in millions)	Fair Value		Unrealized Losses			Fair   Value		Unrealized   Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE mortgage-backed securities and CMOs	$	2,339.6	$	(26.6	)	$	396.9	$	(11.5	)	$	2,736.5	$	(38.1	)
U.S. Treasury and agency		828.3		(30.5	)		—		—			828.3		(30.5	)
Securities held to maturity:
GSE mortgage-backed securities		497.6		(3.2	)		—		—			497.6		(3.2	)
State and municipal		581.7		(23.5	)		—		—			581.7		(23.5	)
Total	$	4,247.2	$	(83.8	)	$	396.9	$	(11.5	)	$	4,644.1	$	(95.3	)

At September 30, 2017, approximately 27% of the 2,046 securities owned by the Company, consisting of 96 securities classified as available for sale and 453 securities classified as held to maturity, had gross unrealized losses totaling $34.7 million and $15.0 million, respectively. All of the GSE mortgage-backed securities and CMOs had AAA credit ratings and an average contractual maturity of 11 years. The state and municipal securities had an average credit rating of AA and an average maturity of 12 years.

The cause of the gross unrealized losses with respect to all of these securities is directly related to changes in interest rates. At this time, management does not intend to sell such securities nor is it more likely than not, based upon available evidence, that management will be required to sell such securities prior to recovery. As such, management believes that all gross unrealized losses within the securities portfolio at September 30, 2017 are temporary impairments. No other-than-temporary impairment losses were recognized in the Consolidated Statements of Income for the three or nine months ended September 30, 2017 or 2016.

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. During the quarter ended March 31, 2017, People’s United sold U.S. Treasury and CMO securities with a combined amortized cost of $487 million and recorded $15.7 million of gross realized losses.

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 $139.5 million and $155.0 million at September 30, 2017 and December 31, 2016, 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 prior acquisitions, the Bank acquired shares of capital stock in the FHLB of New York (total cost of $12.0 million and $11.3 million at September 30, 2017 and December 31, 2016, respectively). 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 September 30, 2017 and the cost of the investment approximates fair value.

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”) (total cost of $169.4 million and $149.5 million at September 30, 2017 and December 31, 2016, respectively) in an amount equal to 6% of its capital and surplus. 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 September 30, 2017 and the cost of the investment approximates fair value.

Included in short-term investments are interest-bearing deposits at the FRB-NY totaling $259.4 million at September 30, 2017 and $169.8 million at December 31, 2016. These deposits represent an alternative to overnight federal funds sold and had yields of 1.25% and 0.75% at September 30, 2017 and December 31, 2016, respectively.

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Loans

9 Months Ended

Sep. 30, 2017

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’). 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.

People’s United maintains several significant accounting policies with respect to loans, including:

• Establishment of the allowance for loan losses (including the identification of ‘impaired’ loans and related impairment measurement considerations);

• Income recognition (including the classification of a loan as ‘non-accrual’ and the treatment of loan origination costs); and

• Recognition of loan charge-offs.

The Company did not change its application of the accounting policies noted above or its methodology for determining the allowance for loan losses during the nine months ended September 30, 2017.

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

	September 30, 2017						December 31, 2016
(in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Commercial:
Commercial real estate	$	10,194.1	$	986.4	$	11,180.5	$	10,012.6	$	234.7	$	10,247.3
Commercial and industrial		7,971.3		653.4		8,624.7		7,939.0		186.1		8,125.1
Equipment financing		3,039.1		666.5		3,705.6		3,020.9		11.6		3,032.5
Total Commercial Portfolio		21,204.5		2,306.3		23,510.8		20,972.5		432.4		21,404.9
Retail:
Residential mortgage:
Adjustable-rate		5,800.9		147.5		5,948.4		5,453.8		95.3		5,549.1
Fixed-rate		706.7		125.9		832.6		613.5		54.1		667.6
Total residential mortgage		6,507.6		273.4		6,781.0		6,067.3		149.4		6,216.7
Home equity and other consumer:
Home equity		1,981.8		59.7		2,041.5		2,044.9		27.7		2,072.6
Other consumer		47.3		3.9		51.2		50.0		0.7		50.7
Total home equity and other consumer		2,029.1		63.6		2,092.7		2,094.9		28.4		2,123.3
Total Retail Portfolio		8,536.7		337.0		8,873.7		8,162.2		177.8		8,340.0
Total loans	$	29,741.2	$	2,643.3	$	32,384.5	$	29,134.7	$	610.2	$	29,744.9

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. Net deferred loan costs, which are included in loans by respective class and accounted for as interest yield adjustments, totaled $73.1 million at September 30, 2017 and $69.9 million at December 31, 2016.

The following tables present a summary, by loan portfolio segment, of activity in the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016. 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.

Three months ended	Commercial									Retail
September 30, 2017 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	198.3		$	3.6		$	201.9		$	29.6		$	0.1	$	29.7		$	231.6
Charge-offs		(4.0	)		(1.0	)		(5.0	)		(1.8	)		—		(1.8	)		(6.8	)
Recoveries		0.9			0.1			1.0			0.6			—		0.6			1.6
Net loan charge-offs		(3.1	)		(0.9	)		(4.0	)		(1.2	)		—		(1.2	)		(5.2	)
Provision for loan losses		4.3			1.3			5.6			1.3			0.1		1.4			7.0
Balance at end of period	$	199.5		$	4.0		$	203.5		$	29.7		$	0.2	$	29.9		$	233.4
Nine months ended	Commercial									Retail
September 30, 2017 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	198.8		$	6.1		$	204.9		$	24.2		$	0.2	$	24.4		$	229.3
Charge-offs		(12.0	)		(2.9	)		(14.9	)		(5.1	)		—		(5.1	)		(20.0	)
Recoveries		3.8			0.1			3.9			1.7			—		1.7			5.6
Net loan charge-offs		(8.2	)		(2.8	)		(11.0	)		(3.4	)		—		(3.4	)		(14.4	)
Provision for loan losses		8.9			0.7			9.6			8.9			—		8.9			18.5
Balance at end of period	$	199.5		$	4.0		$	203.5		$	29.7		$	0.2	$	29.9		$	233.4
Three months ended	Commercial									Retail
September 30, 2016 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	189.7		$	7.2		$	196.9		$	23.3		$	0.2	$	23.5		$	220.4
Charge-offs		(2.7	)		(0.1	)		(2.8	)		(1.1	)		—		(1.1	)		(3.9	)
Recoveries		0.9			—			0.9			0.5			—		0.5			1.4
Net loan charge-offs		(1.8	)		(0.1	)		(1.9	)		(0.6	)		—		(0.6	)		(2.5	)
Provision for loan losses		7.1			—			7.1			1.3			—		1.3			8.4
Balance at end of period	$	195.0		$	7.1		$	202.1		$	24.0		$	0.2	$	24.2		$	226.3
Nine months ended	Commercial									Retail
September 30, 2016 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	181.8		$	7.9		$	189.7		$	21.1		$	0.2	$	21.3		$	211.0
Charge-offs		(10.7	)		(0.4	)		(11.1	)		(6.6	)		—		(6.6	)		(17.7	)
Recoveries		1.6			—			1.6			2.5			—		2.5			4.1
Net loan charge-offs		(9.1	)		(0.4	)		(9.5	)		(4.1	)		—		(4.1	)		(13.6	)
Provision for loan losses		22.3			(0.4	)		21.9			7.0			—		7.0			28.9
Balance at end of period	$	195.0		$	7.1		$	202.1		$	24.0		$	0.2	$	24.2		$	226.3

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

	Originated Loans				Originated Loans
As of	Individually Evaluated				Collectively Evaluated
September 30, 2017	for Impairment				for Impairment				Acquired Loans (1)				Total
(in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	172.5	$	5.7	$	21,032.0	$	193.8	$	2,306.3	$	4.0	$	23,510.8	$	203.5
Retail		94.3		2.4		8,442.4		27.3		337.0		0.2		8,873.7		29.9
Total	$	266.8	$	8.1	$	29,474.4	$	221.1	$	2,643.3	$	4.2	$	32,384.5	$	233.4
	Originated Loans				Originated Loans
As of	Individually Evaluated				Collectively Evaluated
December 31, 2016	for Impairment				for Impairment				Acquired Loans (1)				Total
(in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	161.8	$	5.8	$	20,810.7	$	193.0	$	432.4	$	6.1	$	21,404.9	$	204.9
Retail		91.8		3.2		8,070.4		21.0		177.8		0.2		8,340.0		24.4
Total	$	253.6	$	9.0	$	28,881.1	$	214.0	$	610.2	$	6.3	$	29,744.9	$	229.3

(1) Approximately $3.8 million of the allowance at September 30, 2017 relates to Commercial and Retail PCI loans totaling $406.5 million and $134.7 million, respectively. The remainder of the acquired portfolio represents purchased performing loans with an allowance of approximately $0.4 million at that date. The allowance at December 31, 2016 relates entirely to PCI loans (no acquired loans were purchased performing at that date).

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

	September 30,		December 31,
(in millions)	2017		2016
Commercial:
Commercial real estate	$	36.7	$	22.3
Commercial and industrial		34.9		41.5
Equipment financing		54.1		39.4
Total (1)		125.7		103.2
Retail:
Residential mortgage		33.8		27.4
Home equity		14.8		17.4
Other consumer		—		—
Total (2)		48.6		44.8
Total	$	174.3	$	148.0

(1) Reported net of government guarantees totaling $4.0 million and $13.1 million at September 30, 2017 and December 31, 2016, 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 September 30, 2017, the principal loan classes to which these government guarantees relate are commercial and industrial loans (95%) and commercial real estate loans (5%).

(2) Includes $17.8 million and $9.8 million of loans in the process of foreclosure at September 30, 2017 and December 31, 2016, respectively.

The preceding table excludes acquired loans that are (i) accounted for as PCI loans or (ii) covered by a Federal Deposit Insurance Corporation (“FDIC”) loss-share agreement (“LSA”) totaling $24.5 million and $24.7 million at September 30, 2017 and December 31, 2016, respectively. 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. Accordingly, such 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. In addition, the table excludes purchased performing loans totaling $2.1 million at September 30, 2017, of which $0.5 million became non-performing subsequent to acquisition.

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 September 30, 2017 or December 31, 2016.

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 loans whose terms have been modified in such a way that they are considered troubled debt restructurings (“TDRs”). 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.

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 (see further discussion under ‘Acquired Loans’).

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.

People’s United’s recorded investment in loans classified as TDRs totaled $194.4 million and $189.9 million at September 30, 2017 and December 31, 2016, respectively. The related allowance for loan losses was $4.6 million at September 30, 2017 and $4.2 million at December 31, 2016. Interest income recognized on TDRs totaled $1.4 million and $1.2 million for the three months ended September 30, 2017 and 2016, respectively, and $3.7 million and $3.3 million for the nine months ended September 30, 2017 and 2016, respectively. Fundings under commitments to lend additional amounts to borrowers with loans classified as TDRs were immaterial for the three and nine months ended September 30, 2017 and 2016. Loans that were modified and classified as TDRs during the three and nine months ended September 30, 2017 and 2016 principally involve reduced payment and/or payment deferral, extension of term (generally no more than two years for commercial loans and five 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 three and nine months ended September 30, 2017 and 2016. For purposes of this disclosure, recorded investments represent amounts immediately prior to and subsequent to the restructuring.

	Three Months Ended September 30, 2017
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number		Recorded		Recorded
(dollars in millions)	of Contracts		Investment		Investment
Commercial:
Commercial real estate (1)		1	$	0.1	$	0.1
Commercial and industrial (2)		9		11.6		11.6
Equipment financing (3)		13		8.1		8.1
Total		23		19.8		19.8
Retail:
Residential mortgage (4)		17		3.8		3.8
Home equity (5)		19		1.5		1.5
Other consumer		—		—		—
Total		36		5.3		5.3
Total		59	$	25.1	$	25.1

(1) Represents the following concession: extension of term (1 contract; recorded investment of $0.1 million).

(2) Represents the following concessions: extension of term (9 contracts; recorded investment of $11.6 million).

(3) Represents the following concessions: reduced payment and/or payment deferral (12 contracts; recorded investment of $8.0 million); or a combination of concessions (1 contract; recorded investment of $0.1 million).

(4) Represents the following concessions: loans restructured through bankruptcy (9 contracts; recorded investment of $1.7 million); reduced payment and/or payment deferral (5 contract; recorded investment of $1.7 million); or a combination of concessions (3 contracts; recorded investment of $0.4 million).

(5) Represents the following concessions: loans restructured through bankruptcy (10 contracts; recorded investment of $1.0 million); reduced payment and/or payment deferral (4 contracts; recorded investment of $0.3 million); or a combination of concessions (5 contracts; recorded investment of $0.2 million).

	Nine Months Ended September 30, 2017
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		8	$	5.3	$	5.3
Commercial and industrial (2)		28		39.6		39.6
Equipment financing (3)		54		25.1		25.1
Total		90		70.0		70.0
Retail:
Residential mortgage (4)		45		10.8		10.8
Home equity (5)		65		4.5		4.5
Other consumer		—		—		—
Total		110		15.3		15.3
Total		200	$	85.3	$	85.3

(1) Represents the following concessions: extension of term (5 contracts; recorded investment of $1.4 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $2.2 million); or a temporary rate reduction (1 contract; recorded investment of $1.7 million).

(2) Represents the following concessions: extension of term (25 contracts; recorded investment of $29.9 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $9.4 million); or a combination of concessions (1 contract; recorded investment of $0.3 million).

(3) Represents the following concessions: reduced payment and/or payment deferral (28 contracts; recorded investment of $17.4 million); or a combination of concessions (26 contracts; recorded investment of $7.7 million).

(4) Represents the following concessions: loans restructured through bankruptcy (28 contracts; recorded investment of $4.2 million); reduced payment and/or payment deferral (10 contracts; recorded investment of $3.4 million); or a combination of concessions (7 contracts; recorded investment of $3.2 million).

(5) Represents the following concessions: loans restructured through bankruptcy (41 contracts; recorded investment of $2.6 million); reduced payment and/or payment deferral (10 contracts; recorded investment of $0.8 million); or a combination of concessions (14 contracts; recorded investment of $1.1 million).

	Three Months Ended September 30, 2016
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		7	$	22.1	$	22.1
Commercial and industrial (2)		11		4.5		4.5
Equipment financing (3)		22		10.4		10.4
Total		40		37.0		37.0
Retail:
Residential mortgage (4)		9		2.9		2.9
Home equity (5)		17		1.2		1.2
Other consumer		—		—		—
Total		26		4.1		4.1
Total		66	$	41.1	$	41.1

(1) Represents the following concessions: extension of term (5 contracts; recorded investment of $3.3 million); reduced payment and/or payment deferral (1 contract; recorded investment of $1.7 million); or a combination of concessions (1 contract; recorded investment of $17.1 million).

(2) Represents the following concessions: extension of term (9 contracts; recorded investment of $4.1 million); or reduced payment and/or payment deferral (2 contracts; recorded investment of $0.4 million).

(3) Represents the following concessions: extension of term (6 contracts; recorded investment of $4.3 million); reduced payment and/or payment deferral (13 contracts; recorded investment of $4.7 million); or a combination of concessions (3 contracts; recorded investment of $1.4 million).

(4) Represents the following concessions: loans restructured through bankruptcy (6 contracts; recorded investment of $1.0 million); reduced payment and/or payment deferral (1 contract; recorded investment of $0.7 million); or a combination of concessions (2 contracts; recorded investment of $1.2 million).

(5) Represents the following concessions: loans restructured through bankruptcy (11 contracts; recorded investment of $0.5 million); reduced payment and/or payment deferral (1 contract; recorded investment of $0.2 million); or a combination of concessions (5 contracts; recorded investment of $0.5 million).

	Nine Months Ended September 30, 2016
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		12	$	25.9	$	25.9
Commercial and industrial (2)		36		22.9		22.9
Equipment financing (3)		49		21.7		21.7
Total		97		70.5		70.5
Retail:
Residential mortgage (4)		47		13.1		13.1
Home equity (5)		50		3.8		3.8
Other consumer		—		—		—
Total		97		16.9		16.9
Total		194	$	87.4	$	87.4

(1) Represents the following concessions: extension of term (8 contracts; recorded investment of $6.2 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $2.6 million); or a combination of concessions (2 contracts; recorded investment of $17.1 million).

(2) Represents the following concessions: extension of term (23 contracts; recorded investment of $12.3 million); reduced payment and/or payment deferral (9 contracts; recorded investment of $9.8 million); or a combination of concessions (4 contracts; recorded investment of $0.8 million).

(3) Represents the following concessions: extension of term (17 contracts; recorded investment of $6.3 million); reduced payment and/or payment deferral (25 contracts; recorded investment of $12.5 million); or a combination of concessions (7 contracts; recorded investment of $2.9 million).

(4) Represents the following concessions: loans restructured through bankruptcy (18 contracts; recorded investment of $3.2 million); reduced payment and/or payment deferral (11 contracts; recorded investment of $5.5 million); or a combination of concessions (18 contracts; recorded investment of $4.4 million).

(5) Represents the following concessions: loans restructured through bankruptcy (31 contracts; recorded investment of $2.1 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $0.3 million); or a combination of concessions (17 contracts; recorded investment of $1.4 million).

The following is a summary, by class of loan, of information related to TDRs completed within the previous 12 months that subsequently defaulted during the three and nine months ended September 30, 2017 and 2016. For purposes of this disclosure, the previous 12 months is measured from October 1 of the respective prior year and a default represents a previously-modified loan that became past due 30 days or more during the three or nine months ended September 30, 2017 or 2016.

	Three Months Ended September 30,
	2017				2016
(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		—	$	—		—	$	—
Commercial and industrial		1		0.1		—		—
Equipment financing		8		4.2		14		2.2
Total		9		4.3		14		2.2
Retail:
Residential mortgage		2		0.9		3		0.6
Home equity		5		0.8		—		—
Other consumer		—		—		—		—
Total		7		1.7		3		0.6
Total		16	$	6.0		17	$	2.8

	Nine Months Ended September 30,
	2017				2016
(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		—	$	—		2	$	0.9
Commercial and industrial		4		1.5		5		0.6
Equipment financing		15		6.8		20		5.9
Total		19		8.3		27		7.4
Retail:
Residential mortgage		9		2.7		10		1.9
Home equity		11		1.3		7		0.5
Other consumer		—		—		—		—
Total		20		4.0		17		2.4
Total		39	$	12.3		44	$	9.8

People’s United’s impaired loans consist of certain loans that have been placed on non-accrual status, including all TDRs. The following table summarizes, by class of loan, information related to individually-evaluated impaired loans.

	As of September 30, 2017						As of December 31, 2016
(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	$	50.7	$	46.1	$	—	$	41.4	$	40.0	$	—
Commercial and industrial		39.3		36.7		—		50.7		45.7		—
Equipment financing		42.8		39.1		—		38.2		35.3		—
Retail:
Residential mortgage		66.8		60.0		—		63.6		58.0		—
Home equity		23.5		20.0		—		22.4		18.7		—
Other consumer		—		—		—		—		—		—
Total	$	223.1	$	201.9	$	—	$	216.3	$	197.7	$	—
With a related allowance for loan losses:
Commercial:
Commercial real estate	$	13.5	$	12.8	$	1.2	$	12.2	$	11.4	$	0.6
Commercial and industrial		25.2		24.6		3.0		25.9		25.0		4.7
Equipment financing		14.1		13.2		1.5		5.0		4.4		0.5
Retail:
Residential mortgage		12.4		12.4		1.7		13.1		13.1		2.3
Home equity		1.9		1.9		0.7		2.1		2.0		0.9
Other consumer		—		—		—		—		—		—
Total	$	67.1	$	64.9	$	8.1	$	58.3	$	55.9	$	9.0
Total impaired loans:
Commercial:
Commercial real estate	$	64.2	$	58.9	$	1.2	$	53.6	$	51.4	$	0.6
Commercial and industrial		64.5		61.3		3.0		76.6		70.7		4.7
Equipment financing		56.9		52.3		1.5		43.2		39.7		0.5
Total		185.6		172.5		5.7		173.4		161.8		5.8
Retail:
Residential mortgage		79.2		72.4		1.7		76.7		71.1		2.3
Home equity		25.4		21.9		0.7		24.5		20.7		0.9
Other consumer		—		—		—		—		—		—
Total		104.6		94.3		2.4		101.2		91.8		3.2
Total	$	290.2	$	266.8	$	8.1	$	274.6	$	253.6	$	9.0

The following tables summarize, 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.

	Three Months Ended September 30,
	2017				2016
(in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	61.8	$	0.3	$	54.1	$	0.4
Commercial and industrial		59.7		0.7		60.5		0.3
Equipment financing		46.5		0.2		38.2		0.1
Total		168.0		1.2		152.8		0.8
Retail:
Residential mortgage		72.4		0.4		71.7		0.4
Home equity		21.8		0.1		21.3		0.1
Other consumer		—		—		—		—
Total		94.2		0.5		93.0		0.5
Total	$	262.2	$	1.7	$	245.8	$	1.3

	Nine Months Ended September 30,
	2017				2016
(in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	56.9	$	0.9	$	58.6	$	1.1
Commercial and industrial		66.1		1.6		61.9		1.2
Equipment financing		43.0		0.4		35.9		0.2
Total		166.0		2.9		156.4		2.5
Retail:
Residential mortgage		71.9		1.3		72.1		1.2
Home equity		21.1		0.3		21.9		0.2
Other consumer		—		—		—		—
Total		93.0		1.6		94.0		1.4
Total	$	259.0	$	4.5	$	250.4	$	3.9

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

			Past Due
As of September 30, 2017 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	10,158.6	$	20.3	$	15.2	$	35.5	$	10,194.1
Commercial and industrial		7,943.2		10.1		18.0		28.1		7,971.3
Equipment financing		2,942.7		88.4		8.0		96.4		3,039.1
Total		21,044.5		118.8		41.2		160.0		21,204.5
Retail:
Residential mortgage		6,455.4		31.8		20.4		52.2		6,507.6
Home equity		1,968.5		7.0		6.3		13.3		1,981.8
Other consumer		46.5		0.8		—		0.8		47.3
Total		8,470.4		39.6		26.7		66.3		8,536.7
Total originated loans	$	29,514.9	$	158.4	$	67.9	$	226.3	$	29,741.2

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 $21.7 million, $20.7 million and $46.1 million, respectively, and $21.9 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, 2016 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	9,989.9	$	10.9	$	11.8	$	22.7	$	10,012.6
Commercial and industrial		7,899.2		10.0		29.8		39.8		7,939.0
Equipment financing		2,941.5		68.4		11.0		79.4		3,020.9
Total		20,830.6		89.3		52.6		141.9		20,972.5
Retail:
Residential mortgage		6,027.5		22.0		17.8		39.8		6,067.3
Home equity		2,030.3		5.2		9.4		14.6		2,044.9
Other consumer		49.7		0.3		—		0.3		50.0
Total		8,107.5		27.5		27.2		54.7		8,162.2
Total originated loans	$	28,938.1	$	116.8	$	79.8	$	196.6	$	29,134.7

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 $10.5 million, $24.8 million and $28.4 million, respectively, and $17.6 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/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.). 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. Such loans are included in the tabular disclosures of credit quality indicators that follow.

Acquired Loan 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. For purchased performing loans, the required allowance for loan losses is determined in a manner similar to that for originated loans with a provision for loan losses only recorded when the required allowance for loan losses exceeds any remaining purchase discount at the loan level. For PCI loans, 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 loans in each pool. A decrease in the expected cash flows in subsequent periods requires the establishment of an allowance for loan losses at that time. At September 30, 2017 and December 31, 2016, the allowance for loan losses on acquired loans was $4.2 million and $6.3 million, respectively.

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

As of September 30, 2017 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,926.2	$	7,588.1	$	2,619.7	$	20,134.0
Special mention		129.1		122.8		101.8		353.7
Substandard		137.9		259.6		317.6		715.1
Doubtful		0.9		0.8		—		1.7
Total originated loans		10,194.1		7,971.3		3,039.1		21,204.5
Acquired loans:
Pass		940.9		562.2		666.5		2,169.6
Special mention		6.2		42.4		—		48.6
Substandard		38.6		48.8		—		87.4
Doubtful		0.7		—		—		0.7
Total acquired loans		986.4		653.4		666.5		2,306.3
Total	$	11,180.5	$	8,624.7	$	3,705.6	$	23,510.8
As of September 30, 2017 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	3,259.8	$	928.2	$	27.2	$	4,215.2
Moderate risk		2,715.9		652.2		8.0		3,376.1
High risk		531.9		401.4		12.1		945.4
Total originated loans		6,507.6		1,981.8		47.3		8,536.7
Acquired loans:
Low risk		154.9		—		—		154.9
Moderate risk		60.2		—		—		60.2
High risk		58.3		59.7		3.9		121.9
Total acquired loans		273.4		59.7		3.9		337.0
Total	$	6,781.0	$	2,041.5	$	51.2	$	8,873.7

As of December 31, 2016 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,817.2	$	7,580.6	$	2,617.9	$	20,015.7
Special mention		107.3		121.9		98.8		328.0
Substandard		87.1		233.3		304.2		624.6
Doubtful		1.0		3.2		—		4.2
Total originated loans		10,012.6		7,939.0		3,020.9		20,972.5
Acquired loans:
Pass		182.9		155.5		1.0		339.4
Special mention		13.5		3.6		8.6		25.7
Substandard		37.6		27.0		2.0		66.6
Doubtful		0.7		—		—		0.7
Total acquired loans		234.7		186.1		11.6		432.4
Total	$	10,247.3	$	8,125.1	$	3,032.5	$	21,404.9
	Residential		Home		Other
As of December 31, 2016 (in millions)	Mortgage		Equity		Consumer		Total
Retail:
Originated loans:
Low risk	$	3,016.4	$	950.9	$	31.1	$	3,998.4
Moderate risk		2,538.9		663.9		7.2		3,210.0
High risk		512.0		430.1		11.7		953.8
Total originated loans		6,067.3		2,044.9		50.0		8,162.2
Acquired loans:
Low risk		75.7		—		—		75.7
Moderate risk		27.5		—		—		27.5
High risk		46.2		27.7		0.7		74.6
Total acquired loans		149.4		27.7		0.7		177.8
Total	$	6,216.7	$	2,072.6	$	50.7	$	8,340.0

Acquired Loans

Loans acquired in a business combination are initially recorded at fair value with no carryover of an acquired entity’s previously established 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 evaluated upon acquisition and classified as either purchased performing or PCI.

For purchased performing loans, any premium or discount, representing the difference between the fair value and the outstanding principal balance of the loans, is recognized (using the level yield method) as an adjustment to interest income over the remaining period to contractual maturity or until the loan is repaid in full or sold. Subsequent to the acquisition date, the method utilized to estimate the required allowance for loan losses for these loans is similar to that for originated loans. However, a provision for loan losses is only recorded when the required allowance for loan losses exceeds any remaining purchase discount at the loan level.

PCI loans represent those acquired loans with specific evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required principal and interest payments will not be collected Such 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 PCI 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 level yield method. Accordingly, PCI loans are not subject to classification as non-accrual in the same manner as other loans. Rather, PCI 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 PCI 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.

PCI loans 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-assessmentfor the pool. PCI 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.

At the respective acquisition dates, on an aggregate basis, the PCI loan portfolio had contractually required principal and interest payments receivable of $7.65 billion; expected cash flows of $7.09 billion; and a fair value (initial carrying amount) of $5.42 billion. The difference between the contractually required principal and interest payments receivable and the expected cash flows ($560.1 million) represented the initial nonaccretable difference. The difference between the expected cash flows and fair value ($1.67 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 September 30, 2017, the outstanding principal balance and carrying amount of the PCI loan portfolio were $630.6 million and $541.2 million, respectively ($707.0 million and $610.2 million, respectively, at December 31, 2016).

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions)	2017			2016			2017			2016
Balance at beginning of period	$	233.4		$	270.3		$	255.4		$	296.0
Acquisitions		—			—			13.1			—
Accretion		(7.1	)		(9.0	)		(22.5	)		(31.1	)
Reclassification from nonaccretable difference for loans with improved cash flows (1)		—			—			—			—
Other changes in expected cash flows (2)		—			2.4			(19.7	)		(1.2	)
Balance at end of period	$	226.3		$	263.7		$	226.3		$	263.7

(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.

Other Real Estate Owned and Repossessed Assets (included in Other Assets)

Other real estate owned (“REO”) was comprised of residential and commercial properties totaling $4.7 million and $6.3 million, respectively, at September 30, 2017, and $8.1 million and $4.0 million, respectively, at December 31, 2016. Repossessed assets totaled $5.4 million and $7.2 million at September 30, 2017 and December 31, 2016, respectively.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Stockholders' Equity

NOTE 5. STOCKHOLDERS’ EQUITY

Preferred Stock

People’s United is authorized to issue (i) 50.0 million shares of preferred stock, par value of $0.01 per share, of which 10.0 million shares were outstanding at both September 30, 2017 and December 31, 2016, and (ii) 1.95 billion shares of common stock, par value of $0.01 per share, of which 433.6 million shares and 405.0 million shares were issued at September 30, 2017 and December 31, 2016, respectively.

Treasury Stock

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 (86.4 million shares at both September 30, 2017 and December 31, 2016) 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”) (2.6 million and 2.7 million shares at September 30, 2017 and December 31, 2016, respectively). Following shareholder approval of the People’s United Financial, Inc. 2014 Long-Term Incentive Plan in 2014, no new awards may be granted under the RRP.

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 People’s United’s 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 three and nine months ended September 30, 2017 and 2016 is reported in the Consolidated Statements of Comprehensive Income.

The following is a summary of the changes in the components of accumulated other comprehensive loss (“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 AOCL
Balance at December 31, 2016	$	(145.6	)	$	(32.3	)	$	(17.4	)	$	0.3		$	(195.0	)
Other comprehensive income before reclassifications		—			11.1			—			0.3			11.4
Amounts reclassified from AOCL (1)		2.8			9.9			1.6			(0.4	)		13.9
Current period other comprehensive income		2.8			21.0			1.6			(0.1	)		25.3
Balance at September 30, 2017	$	(142.8	)	$	(11.3	)	$	(15.8	)	$	0.2		$	(169.7	)

(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 AOCL
Balance at December 31, 2015	$	(140.0	)	$	(17.7	)	$	(19.5	)	$	0.0		$	(177.2	)
Other comprehensive income (loss) before reclassifications		—			52.4			—			(0.1	)		52.3
Amounts reclassified from AOCL (1)		2.8			(0.1	)		1.5			0.3			4.5
Current period other comprehensive income		2.8			52.3			1.5			0.2			56.8
Balance at September 30, 2016	$	(137.2	)	$	34.6		$	(18.0	)	$	0.2		$	(120.4	)

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

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

	Amounts Reclassified from AOCL
	Three Months Ended September 30,						Nine Months Ended September 30,						Affected Line Item in the Statement Where Net Income is Presented
(in millions)	2017			2016			2017			2016
Details about components of AOCL:
Amortization of pension and other postretirement plans items:
Net actuarial loss	$	(1.7	)	$	(1.7	)	$	(5.1	)	$	(4.8	)	(1)
Prior service credit		0.2			0.2			0.6			0.6		(1)
		(1.5	)		(1.5	)		(4.5	)		(4.2	)	Income before income tax expense
		0.6			0.6			1.7			1.4		Income tax expense
		(0.9	)		(0.9	)		(2.8	)		(2.8	)	Net income
Reclassification adjustment for net realized gains (losses) on securities available for sale		—			—			(15.6	)		0.1		Income before income tax expense (2)
		—			—			5.7			—		Income tax expense
		—			—			(9.9	)		0.1		Net income
Amortization of unrealized losses on securities transferred to held to held to maturity		(0.9	)		(0.9	)		(2.6	)		(2.4	)	Income before income tax expense (3)
		0.3			0.4			1.0			0.9		Income tax expense
		(0.6	)		(0.5	)		(1.6	)		(1.5	)	Net income
Amortization of unrealized gains and losses on cash flow hedges:
Interest rate swaps		0.3			(0.1	)		0.6			(0.6	)	(4)
Interest rate locks		0.1			0.1			0.1			0.1		(4)
		0.4			—			0.7			(0.5	)	Income before income tax expense
		(0.2	)		—			(0.3	)		0.2		Income tax expense
		0.2			—			0.4			(0.3	)	Net income
Total reclassifications for the period	$	(1.3	)	$	(1.4	)	$	(13.9	)	$	(4.5	)

(1) Included in the computation of net periodic benefit income (expense) reflected in compensation and benefits expense (see Note 8 for additional details).

(2) Included in other non-interest income.

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

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

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Earnings Per Common Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Common Share

NOTE 6. 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 below:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions, except per common share data)	2017			2016			2017			2016
Net income available to common shareholders	$	87.3		$	73.7		$	220.4		$	205.1
Dividends paid on and undistributed earnings allocated to participating securities		(0.1	)		(0.2	)		(0.4	)		(0.6	)
Earnings attributable to common shareholders	$	87.2		$	73.5		$	220.0		$	204.5
Weighted average common shares outstanding for basic EPS		336.9			302.9			327.6			302.4
Effect of dilutive equity-based awards		1.9			0.4			2.0			0.4
Weighted average common and common-equivalent shares for diluted EPS		338.8			303.3			329.6			302.8
Basic EPS	$	0.26		$	0.24		$	0.67		$	0.68
Diluted EPS	$	0.26		$	0.24		$	0.67		$	0.68

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 prior to 2017 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.

All unallocated Employee Stock Ownership Plan (“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 10.2 million shares and 10.1 million shares for the three and nine months ended September 30, 2017, respectively, and 18.2 million shares for both the three and nine months ended September 30, 2016, have been excluded from the calculation of diluted EPS.

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Goodwill and Other Acquisition-Related Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Acquisition-Related Intangible Assets

NOTE 7. GOODWILL AND OTHER ACQUISITION-RELATED INTANGIBLE ASSETS

Changes in the carrying amount of People’s United’s goodwill are summarized as follows for the nine months ended September 30, 2017 and 2016:

	Operating Segment
(in millions)	Commercial Banking			Retail Banking			Wealth Management			Total
Balance at December 31, 2016	$	1,222.1		$	679.6		$	91.0		$	1,992.7
Acquisition of:
Suffolk		229.8			40.5			—			270.3
LEAF		148.4			—			—			148.4
Balance at September 30, 2017	$	1,600.3		$	720.1		$	91.0		$	2,411.4
	Operating Segment
(in millions)	Commercial Banking			Retail Banking			Wealth Management			Total
Balance at December 31, 2015	$	1,222.8		$	681.9		$	54.0		$	1,958.7
Acquisition of Eagle Insurance Group, LLC		—			—			1.4			1.4
Adjustments		(0.7	)		(2.3	)		(0.1	)		(3.1	)
Balance at September 30, 2016	$	1,222.1		$	679.6		$	55.3		$	1,957.0

People’s United’s other acquisition-related intangible assets totaled $156.5 million and $149.4 million at September 30, 2017 and December 31, 2016, respectively. At September 30, 2017, the carrying amounts of other acquisition-related intangible assets were as follows: trade name ($68.1 million); core deposit intangible ($27.9 million); client relationship intangible ($22.5 million); trust relationship intangible ($14.9 million); insurance relationship intangible ($5.4 million); favorable lease agreement ($0.6 million); non-compete agreements ($0.6 million); and mutual fund management contracts, which are not amortized ($16.5 million).

Amortization expense of other acquisition-related intangible assets totaled $7.9 million and $5.8 million for the three months ended September 30, 2017 and 2016, respectively, and $22.1 million and $17.4 million for the nine months ended September 30, 2017 and 2016, respectively. Scheduled amortization expense attributable to other acquisition-related intangible assets for the full-year of 2017 and each of the next five years is as follows: $30.0 million in 2017; $19.9 million in 2018; $18.4 million in 2019; $16.8 million in 2020; $15.0 million in 2021; and $13.5 million in 2022. There were no impairment losses relating to goodwill or other acquisition-related intangible assets recorded during the nine months ended September 30, 2017 and 2016.

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Employee Benefit Plans

NOTE 8. 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’s funding policy is to contribute the amounts required by applicable regulations, although additional amounts may be contributed from time to time.

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.

Components of net periodic benefit (income) expense and other amounts recognized in other comprehensive income for the People’s Qualified Plan, the Chittenden Qualified Plan and the Supplemental Plans (together the “Pension Plans”) and the Other Postretirement Plan are as follows:

							Other
	Pension Plans						Postretirement Plan
Three months ended September 30 (in millions)	2017			2016			2017		2016
Net periodic benefit (income) expense:
Service cost	$	—		$	—		$	0.1	$	—
Interest cost		4.9			4.7			0.1		0.2
Expected return on plan assets		(9.6	)		(8.7	)		—		—
Recognized net actuarial loss		1.6			1.6			0.1		0.1
Recognized prior service credit		(0.2	)		(0.2	)		—		—
Settlements		1.1			0.3			—		—
Net periodic benefit (income) expense	$	(2.2	)	$	(2.3	)	$	0.3	$	0.3

							Other
	Pension Plans						Postretirement Plan
Nine months ended September 30 (in millions)	2017			2016			2017			2016
Net periodic benefit (income) expense:
Service cost	$	—		$	—		$	0.2		$	0.2
Interest cost		14.3			14.1			0.4			0.5
Expected return on plan assets		(28.3	)		(25.9	)		—			—
Recognized net actuarial loss		4.9			4.6			0.2			0.2
Recognized prior service credit		(0.6	)		(0.6	)		—			—
Settlements		2.6			0.9			—			—
Net periodic benefit (income) expense		(7.1	)		(6.9	)		0.8			0.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss		(4.9	)		(4.6	)		(0.2	)		(0.2	)
Prior service credit		0.6			0.6			—			—
Total pre-tax changes recognized in other comprehensive income		(4.3	)		(4.0	)		(0.2	)		(0.2	)
Total recognized in net periodic benefit (income) expense and other comprehensive income	$	(11.4	)	$	(10.9	)	$	0.6		$	0.7

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, for the nine months ended September 30, 2017, totaled $3.6 million. At September 30, 2017, the loan balance totaled $184.9 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 3,745,864 shares of People’s United common stock have been allocated or committed to be released to participants’ accounts. At September 30, 2017, 6,707,711 shares of People’s United common stock, with a fair value of $121.7 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 $4.8 million and $4.0 million for the nine months ended September 30, 2017 and 2016, respectively.

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Legal Proceedings

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings

NOTE 9. 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.

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Segment Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Information

NOTE 10. SEGMENT INFORMATION

See “Segment Results” included in Item 2 for segment information for the three and nine months ended September 30, 2017 and 2016.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 11. 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. 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, GSE residential mortgage-backed securities and CMOs, all of which are included in Level 2.

The Company’s available-for-sale securities are primarily comprised of GSE 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 September 30, 2017 and December 31, 2016, the entire available-for-sale 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 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 securities with similar duration. 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 10- and 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 8, 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/caps, 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 September 30, 2017 (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		741.9		—		—		741.9
GSE mortgage-backed securities and CMOs		—		2,446.6		—		2,446.6
Equity securities		9.0		—		—		9.0
Other assets:				—
Exchange-traded funds		35.0		—		—		35.0
Fixed income securities		—		1.7		—		1.7
Mutual funds		3.6		—		—		3.6
Interest rate swaps/caps		—		101.9		—		101.9
Foreign exchange contracts		—		0.2		—		0.2
Forward commitments to sell residential mortgage loans		—		0.6		—		0.6
Total	$	797.8	$	2,551.0	$	—	$	3,348.8
Financial liabilities:
Interest rate swaps/caps	$	—	$	60.5	$	—	$	60.5
Risk participation agreements (1)		—		—		—		—
Foreign exchange contracts		—		0.2		—		0.2
Interest rate-lock commitments on residential mortgage loans		—		0.7		—		0.7
Total	$	—	$	61.4	$	—	$	61.4

	Fair Value Measurements Using
As of December 31, 2016 (in millions)	Level 1		Level 2		Level 3		Total
Financial assets:
Trading account securities:
U.S. Treasury	$	6.8	$	—	$	—	$	6.8
Securities available for sale:
U.S. Treasury and agency		859.7		—		—		859.7
GSE mortgage-backed securities and CMOs		—		3,550.0		—		3,550.0
Equity securities		—		0.2		—		0.2
Other assets:
Exchange-traded funds		32.6		—		—		32.6
Fixed income securities		—		4.3		—		4.3
Mutual funds		2.7		—		—		2.7
Interest rate swaps/caps		—		173.1		—		173.1
Foreign exchange contracts		—		0.6		—		0.6
Forward commitments to sell residential mortgage loans		—		0.3		—		0.3
Total	$	901.8	$	3,728.5	$	—	$	4,630.3
Financial liabilities:
Interest rate swaps/caps	$	—	$	121.0	$	—	$	121.0
Risk participation agreements (1)		—		—		—		—
Foreign exchange contracts		—		0.3		—		0.3
Interest rate-lock commitments on residential mortgage loans		—		0.4		—		0.4
Total	$	—	$	121.7	$	—	$	121.7

(1) At both September 30, 2017 and December 31, 2016, the fair value of risk participation agreements totaled less than $0.1 million (see Note 12).

There were no transfers into or out of the Level 1 or Level 2 categories during the nine months ended September 30, 2017 or 2016.

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 September 30, 2017 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	15.0	$	—	$	15.0
Impaired loans (2)		—		—		64.9		64.9
REO and repossessed assets (3)		—		—		16.4		16.4
Total	$	—	$	15.0	$	81.3	$	96.3
	Fair Value Measurements Using
As of December 31, 2016 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	39.3	$	—	$	39.3
Impaired loans (2)		—		—		55.9		55.9
REO and repossessed assets (3)		—		—		19.3		19.3
Total	$	—	$	39.3	$	75.2	$	114.5

(1) Consists of residential mortgage loans; no fair value adjustments were recorded for the nine months ended September 30, 2017 and 2016.

(2) Represents the recorded investment in impaired loans with a related allowance for loan losses measured in accordance with applicable accounting guidance. The total consists of $50.6 million of Commercial loans and $14.3 million of Retail loans at September 30, 2017. The provision for loan losses on impaired loans totaled $4.1 million and $3.5 million for the nine months ended September 30, 2017 and 2016, respectively.

(3) Represents: (i) $6.3 million of commercial REO; (ii) $4.7 million of residential REO; and (iii) $5.4 million of repossessed assets at September 30, 2017. Charge-offs to the allowance for loan losses related to loans that were transferred to REO or repossessed assets totaled $2.2 million and $3.3 million for the nine months ended September 30, 2017 and 2016, respectively. Write downs and net loss on sale of foreclosed/repossessed assets charged to non-interest expense totaled $(0.3) million and $2.9 million for the same periods.

Financial Assets and Financial Liabilities Not Measured At Fair Value

As discussed previously, 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 interest rate risk (“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-costfunding 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 customer repurchase agreements are equal to the respective 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 September 30, 2017 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	414.1	$	414.1	$	—	$	—	$	414.1
Short-term investments		302.5		—		302.5		—		302.5
Securities held to maturity		3,387.6		—		3,434.1		1.5		3,435.6
FHLB and FRB stock		320.9		—		320.9		—		320.9
Total loans, net (1)		32,086.2		—		6,583.6		25,363.9		31,947.5
Financial liabilities:
Time deposits		5,235.8		—		5,232.4		—		5,232.4
Other deposits		27,311.5		—		27,311.5		—		27,311.5
FHLB advances		3,074.1		—		3,076.0		—		3,076.0
Federal funds purchased		543.0		—		543.0		—		543.0
Customer repurchase agreements		295.8		—		295.8		—		295.8
Other borrowings		231.1		—		230.9		—		230.9
Notes and debentures		906.2		—		902.6		—		902.6

(1) Excludes impaired loans totaling $64.9 million measured at fair value on a non-recurring basis.

			Estimated Fair Value
	Carrying Amount		Measurements Using
As of December 31, 2016 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	432.4	$	432.4	$	—	$	—	$	432.4
Short-term investments		181.7		—		181.7		—		181.7
Securities held to maturity		2,005.4		—		2,011.2		1.5		2,012.7
FHLB and FRB stock		315.8		—		315.8		—		315.8
Total loans, net (1)		29,459.7		—		6,028.4		23,238.1		29,266.5
Financial liabilities:
Time deposits		4,542.2		—		4,539.7		—		4,539.7
Other deposits		25,318.6		—		25,318.6		—		25,318.6
FHLB advances		3,061.1		—		3,064.4		—		3,064.4
Federal funds purchased		617.0		—		617.0		—		617.0
Customer repurchase agreements		343.3		—		343.3		—		343.3
Other borrowings		35.4		—		35.4		—		35.4
Notes and debentures		1,030.1		—		1,000.0		—		1,000.0

(1) Excludes impaired loans totaling $55.9 million measured at fair value on a non-recurring basis.

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Derivative Financial Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Hedging Activities

NOTE 12. 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.

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.

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 13), 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). There were no derivative instruments with such credit-related contingent features in a net liability position at September 30, 2017.

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/Caps

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.

The Bank has entered into pay floating/receive fixed interest rate swaps to reduce its IRR exposure to the variability in interest cash flows on certain floating-rate commercial loans. The Bank has agreed with the swap counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated based on notional amounts totaling $210 million. The floating-rate interest payments made under the swaps are calculated using the same floating rate received on the commercial loans. The swaps effectively convert the floating-rate one-month LIBOR interest payments received on the commercial loans to a fixed rate and consequently reduce the Bank’s exposure to variability in short-term interest rates. These swaps are accounted for as cash flow hedges.

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 had previously entered into a pay fixed/receive floating interest rate swap to hedge the LIBOR-based floating rate payments on the Company’s $125 million 5.80% fixed-rate/floating-rate subordinated notes. On February 14, 2017, the Company repaid the subordinated notes and, concurrent with the repayment, the interest rate swap designated to these subordinated notes matured. This swap was accounted for as a cash flow hedge.

As a result of the LEAF acquisition, the Company assumed two interest-rate caps with a total notional amount of $150 million, both of which mature in December 2017. Prior to the acquisition, LEAF entered into derivative contracts to reduce potential volatility in its financing costs and to manage its interest rate exposure to changes in one-month LIBOR. Subsequent to the LEAF acquisition, hedge accounting was not applied for these derivatives.

Customer Derivatives

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

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.

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.

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.

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 table below provides a summary of the notional amounts and fair values (presented on a gross basis) of derivatives outstanding:

							Fair Values (1)
			Notional Amounts				Assets				Liabilities
(in millions)	Type of Hedge		Sept. 30, 2017		Dec. 31, 2016		Sept. 30, 2017		Dec. 31, 2016		Sept. 30, 2017		Dec. 31, 2016
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps/caps:
Commercial customers		N/A	$	6,101.2	$	5,612.2	$	91.5	$	93.9	$	39.7	$	46.9
Institutional counterparties		N/A		5,958.2		5,620.2		10.4		65.6		20.8		74.0
Risk participation agreements (2)		N/A		383.4		251.9		—		—		—		—
Foreign exchange contracts		N/A		42.6		101.2		0.2		0.6		0.2		0.3
Forward commitments to sell residential mortgage loans		N/A		26.0		48.6		0.6		0.3		—		—
Interest rate-lock commitments on residential mortgage loans		N/A		31.7		57.0		—		—		0.7		0.4
Total								102.7		160.4		61.4		121.6
Derivatives Designated as Hedging Instruments:
Interest rate swaps:
Subordinated notes		Fair value		375.0		375.0		—		13.6		—		—
Loans		Cash flow		210.0		—		—		—		—		—
Subordinated notes		Cash flow		—		125.0		—		—		—		0.1
Total								—		13.6		—		0.1
Total fair value of derivatives							$	102.7	$	174.0	$	61.4	$	121.7

(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
Nine months ended September 30 (in millions)			2017			2016			2017		2016
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps/caps:
Commercial customers		N/A	$	45.4		$	210.7		$	—	$	—
Institutional counterparties		N/A		(39.1	)		(200.3	)		—		—
Foreign exchange contracts		N/A		0.3			(0.6	)		—		—
Risk participation agreements		N/A		0.5			0.1			—		—
Forward commitments to sell residential mortgage loans		N/A		0.1			0.8			—		—
Interest rate-lock commitments on residential mortgage loans		N/A		(0.1	)		(1.1	)		—		—
Total				7.1			9.6			—		—
Derivatives Designated as Hedging Instruments:
Interest rate swaps		Fair value		4.5			6.4			—		—
Interest rate swaps		Cash flow		0.6			(0.6	)		—		(0.2	)
Interest rate locks		Cash flow		0.1			0.1			—		—
Total				5.2			5.9			—		(0.2	)
Total			$	12.3		$	15.5		$	—	$	(0.2	)

(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

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Balance Sheet Offsetting

NOTE 13. 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, except as indicated below, offset asset and liabilities under such arrangements in the Consolidated Statements of Condition.

Effective January 3, 2017, the Chicago Mercantile Exchange (“CME”) amended their rulebooks to legally characterize variation margin payments for over-the-counter derivatives that clear as settlements rather than collateral. Accordingly, as of that date, the Company updated its accounting policies to classify, for accounting and presentation purposes, variation margin payments deemed to be legal settlements as a single unit of account with the related derivative(s). As of September 30, 2017, this amendment impacted one of the Company’s institutional counterparties. Accordingly, People’s United has, subject to the corresponding enforceable master netting arrangement, netted the institutional counterparty’s CME derivative position and offset the counterparty’s variation margin payments in the Consolidated Statement of Condition as of September 30, 2017.

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.

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 12. 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
							Financial						Net
As of September 30, 2017 (in millions)							Instruments			Collateral			Amount
Financial assets:
Interest rate swaps/caps:
Counterparty A	$	1.7	$	—	$	1.7	$	(1.7	)	$	—		$	—
Counterparty B		0.8		—		0.8		(0.8	)		—			—
Counterparty C		1.4		—		1.4		(1.4	)		—			—
Counterparty D		2.8		—		2.8		(2.8	)		—			—
Counterparty E		2.4		—		2.4		—			—			2.4
Other counterparties		1.3		—		1.3		(0.3	)		(0.9	)		0.1
Foreign exchange contracts		0.2		—		0.2		—			—			0.2
Total	$	10.6	$	—	$	10.6	$	(7.0	)	$	(0.9	)	$	2.7
Financial liabilities:
Interest rate swaps/caps:
Counterparty A	$	3.2	$	—	$	3.2	$	(1.7	)	$	(1.5	)	$	—
Counterparty B		6.9		—		6.9		(0.8	)		(6.1	)		—
Counterparty C		3.7		—		3.7		(1.4	)		(2.3	)		—
Counterparty D		5.9		—		5.9		(2.8	)		(3.1	)		—
Other counterparties		1.2		—		1.2		(0.3	)		(0.9	)		—
Foreign exchange contracts		0.2		—		0.2		—			—			0.2
Total	$	21.1	$	—	$	21.1	$	(7.0	)	$	(13.9	)	$	0.2

	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset
							Financial						Net
As of December 31, 2016 (in millions)							Instruments			Collateral			Amount
Financial assets:
Interest rate swaps/caps:
Counterparty A	$	1.9	$	—	$	1.9	$	(1.9	)	$	—		$	—
Counterparty B		1.0		—		1.0		(1.0	)		—			—
Counterparty C		1.7		—		1.7		(1.7	)		—			—
Counterparty D		3.4		—		3.4		(3.4	)		—			—
Counterparty E		69.6		—		69.6		(50.0	)		(19.6	)		—
Other counterparties		1.6		—		1.6		(0.3	)		(1.3	)		—
Foreign exchange contracts		0.6		—		0.6		—			—			0.6
Total	$	79.8	$	—	$	79.8	$	(58.3	)	$	(20.9	)	$	0.6
Financial liabilities:
Interest rate swaps/caps:
Counterparty A	$	4.3	$	—	$	4.3	$	(1.9	)	$	(2.4	)	$	—
Counterparty B		7.7		—		7.7		(1.0	)		(6.7	)		—
Counterparty C		3.4		—		3.4		(1.7	)		(1.1	)		0.6
Counterparty D		6.9		—		6.9		(3.4	)		(1.7	)		1.8
Counterparty E		50.0		—		50.0		(50.0	)		—			—
Other counterparties		1.8		—		1.8		(0.3	)		(1.5	)		—
Foreign exchange contracts		0.3		—		0.3		—			—			0.3
Total	$	74.4	$	—	$	74.4	$	(58.3	)	$	(13.4	)	$	2.7

Resale and repurchase agreements represent agreements to purchase/sell securities subject to an obligation to resell/repurchase the same or similar securities. 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.

The following table shows the extent to which assets and liabilities exchanged under resale and repurchase agreements have been offset in the Consolidated Statements of Condition. These agreements: (i) are entered into simultaneously with the same financial institution counterparty; (ii) have the same principal amounts and inception/maturity dates; and (iii) are subject to a master netting arrangement that contains a conditional right of offset upon default. At September 30, 2017, the Company posted as collateral marketable securities with a fair value of $248.3 million and, in turn, accepted as collateral marketable securities with a fair value of $254.4 million.

As of September 30, 2017 (in millions)	Gross Amount Recognized		Gross Amount Offset			Net Amount Presented
Total resale agreements	$	250.0	$	(250.0	)	$	—
Total repurchase agreements	$	250.0	$	(250.0	)	$	—

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New Accounting Standards

9 Months Ended

Sep. 30, 2017

Accounting Changes and Error Corrections [Abstract]

New Accounting Standards

NOTE 14. NEW ACCOUNTING STANDARDS

Standards effective in 2017

Derivatives and Hedging

In March 2016, the Financial Accounting Standards Board (the “FASB”) amended its standards with respect to derivatives and hedging. The first amendment clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship and discontinuation of the application of hedge accounting. This amendment does not require additional disclosures beyond disclosure about a change in accounting principle in the period of adoption. The second amendment clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence and no longer is required to assess whether the event that triggers the ability to exercise the option is related to interest rate or credit risk. These amendments, which are being applied prospectively, became effective for People’s United on January 1, 2017 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Investments – Equity Method and Joint Ventures

In March 2016, the FASB amended its standards with respect to the equity method of accounting by eliminating the requirement that, upon an investment qualifying for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations and retained earnings retrospectively, as if the equity method of accounting had been in effect during all previous periods that the investment was held. Rather, under the new guidance, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. Instead, any unrealized holding gain or loss is to be recognized through other comprehensive income on the date the investment qualifies for use of the equity method. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2017 and did not have a significant impact on the Company’s Consolidated Financial Statements.

Stock Compensation

In March 2016, the FASB amended its standards with respect to certain aspects of the accounting for share-based payment awards, including: (i) the related income tax consequences; (ii) the classification of awards as either equity or liabilities; and (iii) the classification in the statement of cash flows. This amendment, which is being applied prospectively, became effective for People’s United on January 1, 2017. As a result, the Company realized windfall income tax benefits totaling $1.3 million for the nine months ended September 30, 2017. This amount, which was recognized as a discrete period income tax benefit, served to lower the Company’s year-to-date effective income tax rate by 0.05%.

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 (now January 1, 2018 for People’s United) with early adoption, as of the original effective date, permitted. Since that date, the FASB has issued amendments to clarify the implementation guidance and add some practical expedients in certain areas, including: (i) principal versus agent considerations; (ii) the identification of performance obligations; and (iii) certain aspects of the accounting for licensing arrangements. These amendments do not change the core principle of the guidance and are effective for and follow the same transition requirements as the core principle.

The Company will adopt this guidance in the first quarter of 2018 using the modified retrospective method with a cumulative-effect adjustment to opening retained earnings, as appropriate. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities (approximately 75%) and non-interest income (approximately 25%). The scope of the guidance explicitly excludes net interest income as well as other revenues associated with financial assets and liabilities, including loans, leases, securities and derivatives. Accordingly, the majority of the Company’s revenues will not be affected. Certain other recurring revenue streams are within the scope of the guidance, including service charges and fees on deposit accounts, card-based and other non-deposit fees, and revenues associated with certain products and services offered by the Company’s trust and investment management, insurance and brokerage businesses.

The Company’s assessment of in-scope revenue streams is substantially complete and its preliminary analysis suggests that adoption of the guidance, including the related transition adjustment, as appropriate, is not expected to have a material impact on the Company’s Consolidated Financial Statements, its current accounting policies and practices or the timing or amount of revenue recognized. However, as new interpretative guidance related to the adoption of the amended standard is issued, the Company’s preliminary conclusions with respect to materiality could be impacted. In connection with its adoption efforts, the Company has, where appropriate, evaluated necessary changes to business processes, systems and internal controls in order to support the recognition, measurement and disclosure requirements of the new standard.

Presentation of Deferred Taxes

In November 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 condition, thereby simplifying the presentation of deferred income taxes. For public business entities, this new amendment is effective for fiscal years, and interim periods within those fiscal years, 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. Both FRB-NY and FHLB stock will continue to be presented at cost. The guidance also contains additional disclosure and presentation requirements associated with financial instruments. Specifically, the standard emphasizes the existing requirement to use “exit price” when determining fair value for disclosure purposes, clarifying that entities should not make use of a practicability exception in determining the fair value of loans.

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. While the Company continues to monitor the potential impact of the amended guidance on its Consolidated Financial Statements, such impact is indeterminable at this time as it will be dependent upon portfolio composition at the adoption date. As noted in Note 3, at September 30, 2017, the Company’s securities portfolio included equity securities with an amortized cost of $9.6 million and a fair value of $9.0 million. The Company does expect to refine the calculation used to determine the fair value of its held-for-investment loan portfolio in connection with adopting the standard.

Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB amended its standards to address the classification of certain cash receipts and payments within the statement of cash flows. Specifically, the amended guidance addresses the following: (i) debt prepayment or debt extinguishment costs; (ii) settlement of zero-coupon bonds; (iii) contingent payments made after a business combination; (iv) proceeds from the settlement of insurance claims; (v) proceeds from the settlement of corporate-owned life insurance policies, including BOLI policies; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions; and (viii) separately identifiable cash flows and application of the predominance principle. 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 retrospective transition method will be applied to all periods presented and early adoption is permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Asset Derecognition and Accounting for Partial Sales of Nonfinancial Assets

In February 2017, the FASB amended its standards to clarify the scope of its guidance on derecognition of a nonfinancial asset and provide additional guidance on the definition of in-substance nonfinancial assets and partial sales of nonfinancial assets. Under prior guidance, several different accounting models existed for use in evaluating whether the transfer of certain assets qualified for sale treatment. The amended guidance reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. For public business entities, this new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United). The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

In March 2017, the FASB amended its standards to (i) require that the service cost component of net benefit cost associated with pension and postretirement plans be reported in the same line item in which the related employees’ compensation cost is reported and (ii) specify that only the service cost component is eligible for capitalization. The other components of net benefit cost, which may not be capitalized, are to be presented separately. For public business entities, this new guidance, which is to be applied retrospectively, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United) and early adoption is permitted. The adoption of this amendment will result in a reclassification of certain net benefit cost components from compensation and benefits expense to other non-interest expense and, as such, is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Stock Compensation

In July 2017, the FASB amended its standards with respect to share-based payment awards to provide explicit guidance pertaining to the provisions of modification accounting. The amendment clarifies that an entity should not account for the effects of a modification if the award’s fair value, vesting conditions and classification (as either debt or equity) are the same immediately before and after the modification. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (January 1, 2018 for People’s United) and is to be applied prospectively to awards modified on or after the adoption date. Earlier application of the amendment is permitted. The adoption of this amendment is not expected to have a significant impact 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 condition as a “right-of-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 has begun its evaluation of the amended guidance including the potential impact on its Consolidated Financial Statements. To date, the Company has identified several areas that are within the scope of the guidance, including its contracts with respect to leased real estate and office equipment. In addition, operating lease agreements entered into with customers by the Company’s equipment financing businesses are also subject to the new guidance. The Company continues to evaluate the impact of the guidance, including determining whether additional contracts exist that are deemed to be in scope. As such, no conclusions have yet been reached regarding the potential impact of adoption on the Company’s Consolidated Financial Statements. The Federal banking agencies have indicated that to the extent a “right-of-use” asset arises due to a lease of a tangible asset (e.g. building or equipment), the asset should: (i) be treated as a tangible asset not subject to deduction from regulatory capital; (ii) risk-weighted at 100%; and (iii) included in total assets for leverage capital purposes.

Premium Amortization – Purchased Callable Debt Securities

In April 2017, the FASB amended its standards to shorten the amortization period for certain callable debt securities held at a premium, requiring such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. This amendment, which does not change the accounting for callable debt securities held at a discount, is effective for public business entities for fiscal years beginning after December 15, 2018 (January 1, 2019 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.

Derivatives and Hedging

In August 2017, the FASB amended its standards with respect to the accounting for derivatives and hedging, simplifying existing guidance in order to enable companies to more accurately portray the economic effects of risk management activities in the financial statements and enhancing the transparency and understandability of hedge results through improved disclosures. This new guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (January 1, 2019 for People’s United) with early adoption permitted. The Company is still evaluating whether to apply the early adoption provisions of the standard. However, given the limited number of derivatives currently designated as hedging instruments, the adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

Standards effective in 2020

Financial Instruments – Credit Losses

In June 2016, the FASB amended its standards with respect to certain aspects of measurement, recognition and disclosure of credit losses on loans and other financial instruments, including available-for-sale debt securities and purchased financial assets with credit deterioration. The amendment is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). For certain assets (such as debt securities for which an other-than-temporary impairment has been recognized before the effective date and purchased financial assets with credit deterioration), a prospective transition approach is required. For public business entities, this new amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (January 1, 2020 for People’s United) and earlier application is permitted as of the beginning of an interim or annual reporting period beginning after December 15, 2018.

While early adoption is permitted, the Company does not expect to elect that option. In preparing for adoption, the Company has established a cross-functional working group comprised of individuals from various disciplines, including credit, risk management, information technology and finance. That working group, which is subject to the Company’s established corporate governance and oversight structure, is currently engaged in: (i) identifying key interpretative issues; (ii) determining the appropriate level of portfolio segmentation; (iii) reviewing historical data so as to identify potential data and resource gaps; and (iv) evaluating existing credit loss forecasting models and processes in order to determine what modifications may be required. In addition, the Company has purchased a third-party vendor solution that will aid in the application of the standard. As a result of the required change in approach toward determining estimated credit losses from the current “incurred loss” model to one based on estimated cash flows over a loan’s contractual life, adjusted for prepayments (a “life of loan” model), the Company expects the new guidance will result in an increase in the allowance for loan losses, particularly for longer duration portfolios. The Company also expects the new guidance may result in an allowance for debt securities. In both cases, the extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Further, to date, no guidance has been issued by either the Company’s or the Bank’s primary regulators with respect to how the impact of the amended standard is to be treated for regulatory capital purposes.

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB amended its standards with respect to goodwill, simplifying how an entity is required to conduct the impairment assessment by eliminating Step 2, which requires a hypothetical purchase price allocation, from the goodwill impairment test. Instead, goodwill impairment will now be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. An entity will still have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. For public business entities, this new guidance is effective in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (January 1, 2020 for People’s United) and is to be applied prospectively. Early adoption is permitted for any impairment tests performed after January 1, 2017. The adoption of this amendment is not expected to have a significant impact on the Company’s Consolidated Financial Statements.

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Employee Benefit Plans (Policies)

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

People's United Employee Pension and Other Postretirement 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’s funding policy is to contribute the amounts required by applicable regulations, although additional amounts may be contributed from time to time.

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.

Employee Stock Ownership Plan

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, for the nine months ended September 30, 2017, totaled $3.6 million. At September 30, 2017, the loan balance totaled $184.9 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 3,745,864 shares of People’s United common stock have been allocated or committed to be released to participants’ accounts. At September 30, 2017, 6,707,711 shares of People’s United common stock, with a fair value of $121.7 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 $4.8 million and $4.0 million for the nine months ended September 30, 2017 and 2016, respectively.

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. 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, GSE residential mortgage-backed securities and CMOs, all of which are included in Level 2.

The Company’s available-for-sale securities are primarily comprised of GSE 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 September 30, 2017 and December 31, 2016, the entire available-for-sale 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 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 securities with similar duration. 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 10- and 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 8, 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/caps, foreign exchange contracts, risk participation agreements, forward commitments to sell residential mortgage loans and interest rate-lock commitments on residential mortgage loans.

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.

Financial Assets and Financial Liabilities Not Measured At Fair Value

As discussed previously, 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 interest rate risk (“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 customer repurchase agreements are equal to the respective 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.

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Acquisitions (Tables)

9 Months Ended

Sep. 30, 2017

Summary of Pro Forma Financial Information Reflecting Acquisition

The following table presents selected unaudited pro forma financial information of the Company reflecting the acquisitions of Suffolk and LEAF assuming the acquisitions were completed as of the beginning of the respective periods:

	Nine Months Ended September 30,
(in millions, except per common share data)	2017		2016
Selected Financial Results:
Net interest income	$	835.9	$	797.3
Provision for loan losses		18.5		28.9
Non-interest income		275.5		275.5
Non-interest expense		720.6		707.1
Net income		258.0		227.7
Net income applicable to common shareholders		247.5		227.7
Basic and diluted earnings per common share	$	0.73	$	0.69

Suffolk Bancorp [Member]

Estimated Fair Values of Assets Acquired and Liabilities Assumed

The acquisition-date estimated fair values of the assets acquired and liabilities assumed in the acquisition of Suffolk are summarized as follows:

(in millions)
Assets:
Cash and cash equivalents	$	174.0
Securities		167.4
Loans		1,617.5
Goodwill		270.3
Core deposit intangible		28.1
Premises and equipment		40.4
Bank-owned life insurance		54.1
Other real estate owned		0.5
Other assets		28.9
Total assets	$	2,381.2
Liabilities:
Deposits	$	1,852.4
Borrowings		15.1
Other liabilities		28.9
Total liabilities	$	1,896.4
Total purchase price	$	484.8

LEAF Commercial Capital, Inc. [Member]

Estimated Fair Values of Assets Acquired and Liabilities Assumed

The acquisition-date estimated fair values of the assets acquired and liabilities assumed in the acquisition of LEAF are summarized as follows:

(in millions)
Assets:
Cash and cash equivalents	$	74.9
Loans		717.9
Goodwill		148.4
Trade name intangible		0.9
Premises and equipment		2.4
Non-compete agreement		0.2
Other assets		13.0
Total assets	$	957.7
Liabilities:
Borrowings	$	708.1
Other liabilities		29.6
Total liabilities	$	737.7
Total purchase price	$	220.0

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Securities and Short-Term Investments (Tables)

9 Months Ended

Sep. 30, 2017

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 September 30, 2017 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	760.9	$	0.1	$	(19.1	)	$	741.9
GSE (1) mortgage-backed securities and CMOs (2)		2,450.1		11.5		(15.0	)		2,446.6
Total debt securities		3,211.0		11.6		(34.1	)		3,188.5
Equity securities (3)		9.6		—		(0.6	)		9.0
Total securities available for sale	$	3,220.6	$	11.6	$	(34.7	)	$	3,197.5
Securities held to maturity:
Debt securities:
State and municipal	$	1,999.2	$	60.7	$	(8.5	)	$	2,051.4
GSE mortgage-backed securities		1,344.6		1.5		(6.5	)		1,339.6
Corporate		42.3		0.8		—			43.1
Other		1.5		—		—			1.5
Total securities held to maturity	$	3,387.6	$	63.0	$	(15.0	)	$	3,435.6

(1) Government sponsored enterprise

(2) Collateralized mortgage obligations

(3) During the quarter ended March 31, 2017, the Company exchanged its ownership interest in a non-marketable equity security (previously recorded in other assets) for cash and common stock in a publicly-traded company (fair value of approximately $10.8 million at acquisition).

As of December 31, 2016 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
Debt securities:
U.S. Treasury and agency	$	889.9	$	0.3	$	(30.5	)	$	859.7
GSE mortgage-backed securities and CMOs		3,573.1		15.0		(38.1	)		3,550.0
Total debt securities		4,463.0		15.3		(68.6	)		4,409.7
Equity securities		0.2		—		—			0.2
Total securities available for sale	$	4,463.2	$	15.3	$	(68.6	)	$	4,409.9
Securities held to maturity:
Debt securities:
State and municipal	$	1,499.1	$	33.9	$	(23.5	)	$	1,509.5
GSE mortgage-backed securities		500.8		—		(3.2	)		497.6
Corporate		4.0		—		—			4.0
Other		1.5		—		—			1.5
Total securities held to maturity	$	2,005.4	$	33.9	$	(26.7	)	$	2,012.6

Summary of Amortized Cost and Fair Value of Debt Securities Based on Remaining Period to Contractual Maturity

The following table is a summary of the amortized cost and fair value of debt securities as of September 30, 2017, based on remaining period to contractual maturity. Information for GSE mortgage-backed securities and CMOs is based on the final contractual maturity dates without considering repayments and prepayments.

	Available for Sale				Held to Maturity
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Treasury and agency:
Within 1 year	$	1.0	$	1.0	$	—	$	—
After 1 but within 5 years		361.3		355.0		—		—
After 5 but within 10 years		398.6		385.9		—		—
Total		760.9		741.9		—		—
GSE mortgage-backed securities and CMOs:
After 1 but within 5 years		—		—		69.4		69.4
After 5 but within 10 years		604.6		613.9		834.3		830.4
After 10 years		1,845.5		1,832.7		440.9		439.8
Total		2,450.1		2,446.6		1,344.6		1,339.6
State and municipal:
Within 1 year		—		—		18.7		18.7
After 1 but within 5 years		—		—		114.1		117.4
After 5 but within 10 years		—		—		343.2		363.2
After 10 years		—		—		1,523.2		1,552.1
Total		—		—		1,999.2		2,051.4
Corporate:
After 1 but within 5 years		—		—		5.0		5.0
After 5 but within 10 years		—		—		37.3		38.1
Total		—		—		42.3		43.1
Other:
After 1 but within 5 years		—		—		1.5		1.5
Total		—		—		1.5		1.5
Total:
Within 1 year		1.0		1.0		18.7		18.7
After 1 but within 5 years		361.3		355.0		190.0		193.3
After 5 but within 10 years		1,003.2		999.8		1,214.8		1,231.7
After 10 years		1,845.5		1,832.7		1,964.1		1,991.9
Total	$	3,211.0	$	3,188.5	$	3,387.6	$	3,435.6

Continuous Unrealized Loss Position on Available-for-Sale and Held-to-Maturities Securities

The following tables summarize those 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 September 30, 2017 (in millions)	Fair Value		Unrealized Losses			Fair   Value		Unrealized   Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE mortgage-backed securities and CMOs	$	1,675.6	$	(12.1	)	$	133.9	$	(2.9	)	$	1,809.5	$	(15.0	)
U.S. Treasury and agency		206.6		(3.0	)		530.1		(16.1	)		736.7		(19.1	)
Equity securities		9.0		(0.6	)		—		—			9.0		(0.6	)
Securities held to maturity:
GSE mortgage-backed securities		1,029.5		(6.5	)		—		—			1,029.5		(6.5	)
State and municipal		270.3		(1.7	)		207.5		(6.8	)		477.8		(8.5	)
Corporate		2.8		—			—		—			2.8		—
Total	$	3,193.8	$	(23.9	)	$	871.5	$	(25.8	)	$	4,065.3	$	(49.7	)

	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months Or Longer					Total
As of December 31, 2016 (in millions)	Fair Value		Unrealized Losses			Fair   Value		Unrealized   Losses			Fair Value		Unrealized Losses
Securities available for sale:
GSE mortgage-backed securities and CMOs	$	2,339.6	$	(26.6	)	$	396.9	$	(11.5	)	$	2,736.5	$	(38.1	)
U.S. Treasury and agency		828.3		(30.5	)		—		—			828.3		(30.5	)
Securities held to maturity:
GSE mortgage-backed securities		497.6		(3.2	)		—		—			497.6		(3.2	)
State and municipal		581.7		(23.5	)		—		—			581.7		(23.5	)
Total	$	4,247.2	$	(83.8	)	$	396.9	$	(11.5	)	$	4,644.1	$	(95.3	)

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Loans (Tables)

9 Months Ended

Sep. 30, 2017

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:

	September 30, 2017						December 31, 2016
(in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Commercial:
Commercial real estate	$	10,194.1	$	986.4	$	11,180.5	$	10,012.6	$	234.7	$	10,247.3
Commercial and industrial		7,971.3		653.4		8,624.7		7,939.0		186.1		8,125.1
Equipment financing		3,039.1		666.5		3,705.6		3,020.9		11.6		3,032.5
Total Commercial Portfolio		21,204.5		2,306.3		23,510.8		20,972.5		432.4		21,404.9
Retail:
Residential mortgage:
Adjustable-rate		5,800.9		147.5		5,948.4		5,453.8		95.3		5,549.1
Fixed-rate		706.7		125.9		832.6		613.5		54.1		667.6
Total residential mortgage		6,507.6		273.4		6,781.0		6,067.3		149.4		6,216.7
Home equity and other consumer:
Home equity		1,981.8		59.7		2,041.5		2,044.9		27.7		2,072.6
Other consumer		47.3		3.9		51.2		50.0		0.7		50.7
Total home equity and other consumer		2,029.1		63.6		2,092.7		2,094.9		28.4		2,123.3
Total Retail Portfolio		8,536.7		337.0		8,873.7		8,162.2		177.8		8,340.0
Total loans	$	29,741.2	$	2,643.3	$	32,384.5	$	29,134.7	$	610.2	$	29,744.9

Summary, by Loan Portfolio Segment, of Activity in Allowance for Loan Losses

The following tables present a summary, by loan portfolio segment, of activity in the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016. 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.

Three months ended	Commercial									Retail
September 30, 2017 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	198.3		$	3.6		$	201.9		$	29.6		$	0.1	$	29.7		$	231.6
Charge-offs		(4.0	)		(1.0	)		(5.0	)		(1.8	)		—		(1.8	)		(6.8	)
Recoveries		0.9			0.1			1.0			0.6			—		0.6			1.6
Net loan charge-offs		(3.1	)		(0.9	)		(4.0	)		(1.2	)		—		(1.2	)		(5.2	)
Provision for loan losses		4.3			1.3			5.6			1.3			0.1		1.4			7.0
Balance at end of period	$	199.5		$	4.0		$	203.5		$	29.7		$	0.2	$	29.9		$	233.4
Nine months ended	Commercial									Retail
September 30, 2017 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	198.8		$	6.1		$	204.9		$	24.2		$	0.2	$	24.4		$	229.3
Charge-offs		(12.0	)		(2.9	)		(14.9	)		(5.1	)		—		(5.1	)		(20.0	)
Recoveries		3.8			0.1			3.9			1.7			—		1.7			5.6
Net loan charge-offs		(8.2	)		(2.8	)		(11.0	)		(3.4	)		—		(3.4	)		(14.4	)
Provision for loan losses		8.9			0.7			9.6			8.9			—		8.9			18.5
Balance at end of period	$	199.5		$	4.0		$	203.5		$	29.7		$	0.2	$	29.9		$	233.4
Three months ended	Commercial									Retail
September 30, 2016 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	189.7		$	7.2		$	196.9		$	23.3		$	0.2	$	23.5		$	220.4
Charge-offs		(2.7	)		(0.1	)		(2.8	)		(1.1	)		—		(1.1	)		(3.9	)
Recoveries		0.9			—			0.9			0.5			—		0.5			1.4
Net loan charge-offs		(1.8	)		(0.1	)		(1.9	)		(0.6	)		—		(0.6	)		(2.5	)
Provision for loan losses		7.1			—			7.1			1.3			—		1.3			8.4
Balance at end of period	$	195.0		$	7.1		$	202.1		$	24.0		$	0.2	$	24.2		$	226.3
Nine months ended	Commercial									Retail
September 30, 2016 (in millions)	Originated			Acquired			Total			Originated			Acquired		Total			Total
Balance at beginning of period	$	181.8		$	7.9		$	189.7		$	21.1		$	0.2	$	21.3		$	211.0
Charge-offs		(10.7	)		(0.4	)		(11.1	)		(6.6	)		—		(6.6	)		(17.7	)
Recoveries		1.6			—			1.6			2.5			—		2.5			4.1
Net loan charge-offs		(9.1	)		(0.4	)		(9.5	)		(4.1	)		—		(4.1	)		(13.6	)
Provision for loan losses		22.3			(0.4	)		21.9			7.0			—		7.0			28.9
Balance at end of period	$	195.0		$	7.1		$	202.1		$	24.0		$	0.2	$	24.2		$	226.3

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				Originated Loans
As of	Individually Evaluated				Collectively Evaluated
September 30, 2017	for Impairment				for Impairment				Acquired Loans (1)				Total
(in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	172.5	$	5.7	$	21,032.0	$	193.8	$	2,306.3	$	4.0	$	23,510.8	$	203.5
Retail		94.3		2.4		8,442.4		27.3		337.0		0.2		8,873.7		29.9
Total	$	266.8	$	8.1	$	29,474.4	$	221.1	$	2,643.3	$	4.2	$	32,384.5	$	233.4
	Originated Loans				Originated Loans
As of	Individually Evaluated				Collectively Evaluated
December 31, 2016	for Impairment				for Impairment				Acquired Loans (1)				Total
(in millions)	Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance		Portfolio		Allowance
Commercial	$	161.8	$	5.8	$	20,810.7	$	193.0	$	432.4	$	6.1	$	21,404.9	$	204.9
Retail		91.8		3.2		8,070.4		21.0		177.8		0.2		8,340.0		24.4
Total	$	253.6	$	9.0	$	28,881.1	$	214.0	$	610.2	$	6.3	$	29,744.9	$	229.3

(1) Approximately $3.8 million of the allowance at September 30, 2017 relates to Commercial and Retail PCI loans totaling $406.5 million and $134.7 million, respectively. The remainder of the acquired portfolio represents purchased performing loans with an allowance of approximately $0.4 million at that date. The allowance at December 31, 2016 relates entirely to PCI loans (no acquired loans were purchased performing at that date).

Summarized Recorded Investments, by Class of Loan, in Originated Non-Performing Loans

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

	September 30,		December 31,
(in millions)	2017		2016
Commercial:
Commercial real estate	$	36.7	$	22.3
Commercial and industrial		34.9		41.5
Equipment financing		54.1		39.4
Total (1)		125.7		103.2
Retail:
Residential mortgage		33.8		27.4
Home equity		14.8		17.4
Other consumer		—		—
Total (2)		48.6		44.8
Total	$	174.3	$	148.0

(1) Reported net of government guarantees totaling $4.0 million and $13.1 million at September 30, 2017 and December 31, 2016, 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 September 30, 2017, the principal loan classes to which these government guarantees relate are commercial and industrial loans (95%) and commercial real estate loans (5%).

(2) Includes $17.8 million and $9.8 million of loans in the process of foreclosure at September 30, 2017 and December 31, 2016, 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 three and nine months ended September 30, 2017 and 2016. For purposes of this disclosure, recorded investments represent amounts immediately prior to and subsequent to the restructuring.

	Three Months Ended September 30, 2017
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number		Recorded		Recorded
(dollars in millions)	of Contracts		Investment		Investment
Commercial:
Commercial real estate (1)		1	$	0.1	$	0.1
Commercial and industrial (2)		9		11.6		11.6
Equipment financing (3)		13		8.1		8.1
Total		23		19.8		19.8
Retail:
Residential mortgage (4)		17		3.8		3.8
Home equity (5)		19		1.5		1.5
Other consumer		—		—		—
Total		36		5.3		5.3
Total		59	$	25.1	$	25.1

(1) Represents the following concession: extension of term (1 contract; recorded investment of $0.1 million).

(2) Represents the following concessions: extension of term (9 contracts; recorded investment of $11.6 million).

(3) Represents the following concessions: reduced payment and/or payment deferral (12 contracts; recorded investment of $8.0 million); or a combination of concessions (1 contract; recorded investment of $0.1 million).

(4) Represents the following concessions: loans restructured through bankruptcy (9 contracts; recorded investment of $1.7 million); reduced payment and/or payment deferral (5 contract; recorded investment of $1.7 million); or a combination of concessions (3 contracts; recorded investment of $0.4 million).

(5) Represents the following concessions: loans restructured through bankruptcy (10 contracts; recorded investment of $1.0 million); reduced payment and/or payment deferral (4 contracts; recorded investment of $0.3 million); or a combination of concessions (5 contracts; recorded investment of $0.2 million).

	Nine Months Ended September 30, 2017
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		8	$	5.3	$	5.3
Commercial and industrial (2)		28		39.6		39.6
Equipment financing (3)		54		25.1		25.1
Total		90		70.0		70.0
Retail:
Residential mortgage (4)		45		10.8		10.8
Home equity (5)		65		4.5		4.5
Other consumer		—		—		—
Total		110		15.3		15.3
Total		200	$	85.3	$	85.3

(1) Represents the following concessions: extension of term (5 contracts; recorded investment of $1.4 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $2.2 million); or a temporary rate reduction (1 contract; recorded investment of $1.7 million).

(2) Represents the following concessions: extension of term (25 contracts; recorded investment of $29.9 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $9.4 million); or a combination of concessions (1 contract; recorded investment of $0.3 million).

(3) Represents the following concessions: reduced payment and/or payment deferral (28 contracts; recorded investment of $17.4 million); or a combination of concessions (26 contracts; recorded investment of $7.7 million).

(4) Represents the following concessions: loans restructured through bankruptcy (28 contracts; recorded investment of $4.2 million); reduced payment and/or payment deferral (10 contracts; recorded investment of $3.4 million); or a combination of concessions (7 contracts; recorded investment of $3.2 million).

(5) Represents the following concessions: loans restructured through bankruptcy (41 contracts; recorded investment of $2.6 million); reduced payment and/or payment deferral (10 contracts; recorded investment of $0.8 million); or a combination of concessions (14 contracts; recorded investment of $1.1 million).

	Three Months Ended September 30, 2016
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		7	$	22.1	$	22.1
Commercial and industrial (2)		11		4.5		4.5
Equipment financing (3)		22		10.4		10.4
Total		40		37.0		37.0
Retail:
Residential mortgage (4)		9		2.9		2.9
Home equity (5)		17		1.2		1.2
Other consumer		—		—		—
Total		26		4.1		4.1
Total		66	$	41.1	$	41.1

(1) Represents the following concessions: extension of term (5 contracts; recorded investment of $3.3 million); reduced payment and/or payment deferral (1 contract; recorded investment of $1.7 million); or a combination of concessions (1 contract; recorded investment of $17.1 million).

(2) Represents the following concessions: extension of term (9 contracts; recorded investment of $4.1 million); or reduced payment and/or payment deferral (2 contracts; recorded investment of $0.4 million).

(3) Represents the following concessions: extension of term (6 contracts; recorded investment of $4.3 million); reduced payment and/or payment deferral (13 contracts; recorded investment of $4.7 million); or a combination of concessions (3 contracts; recorded investment of $1.4 million).

(4) Represents the following concessions: loans restructured through bankruptcy (6 contracts; recorded investment of $1.0 million); reduced payment and/or payment deferral (1 contract; recorded investment of $0.7 million); or a combination of concessions (2 contracts; recorded investment of $1.2 million).

(5) Represents the following concessions: loans restructured through bankruptcy (11 contracts; recorded investment of $0.5 million); reduced payment and/or payment deferral (1 contract; recorded investment of $0.2 million); or a combination of concessions (5 contracts; recorded investment of $0.5 million).

	Nine Months Ended September 30, 2016
(dollars in millions)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate (1)		12	$	25.9	$	25.9
Commercial and industrial (2)		36		22.9		22.9
Equipment financing (3)		49		21.7		21.7
Total		97		70.5		70.5
Retail:
Residential mortgage (4)		47		13.1		13.1
Home equity (5)		50		3.8		3.8
Other consumer		—		—		—
Total		97		16.9		16.9
Total		194	$	87.4	$	87.4

(1) Represents the following concessions: extension of term (8 contracts; recorded investment of $6.2 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $2.6 million); or a combination of concessions (2 contracts; recorded investment of $17.1 million).

(2) Represents the following concessions: extension of term (23 contracts; recorded investment of $12.3 million); reduced payment and/or payment deferral (9 contracts; recorded investment of $9.8 million); or a combination of concessions (4 contracts; recorded investment of $0.8 million).

(3) Represents the following concessions: extension of term (17 contracts; recorded investment of $6.3 million); reduced payment and/or payment deferral (25 contracts; recorded investment of $12.5 million); or a combination of concessions (7 contracts; recorded investment of $2.9 million).

(4) Represents the following concessions: loans restructured through bankruptcy (18 contracts; recorded investment of $3.2 million); reduced payment and/or payment deferral (11 contracts; recorded investment of $5.5 million); or a combination of concessions (18 contracts; recorded investment of $4.4 million).

(5) Represents the following concessions: loans restructured through bankruptcy (31 contracts; recorded investment of $2.1 million); reduced payment and/or payment deferral (2 contracts; recorded investment of $0.3 million); or a combination of concessions (17 contracts; recorded investment of $1.4 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 completed within the previous 12 months that subsequently defaulted during the three and nine months ended September 30, 2017 and 2016. For purposes of this disclosure, the previous 12 months is measured from October 1 of the respective prior year and a default represents a previously-modified loan that became past due 30 days or more during the three or nine months ended September 30, 2017 or 2016.

	Three Months Ended September 30,
	2017				2016
(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		—	$	—		—	$	—
Commercial and industrial		1		0.1		—		—
Equipment financing		8		4.2		14		2.2
Total		9		4.3		14		2.2
Retail:
Residential mortgage		2		0.9		3		0.6
Home equity		5		0.8		—		—
Other consumer		—		—		—		—
Total		7		1.7		3		0.6
Total		16	$	6.0		17	$	2.8

	Nine Months Ended September 30,
	2017				2016
(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		—	$	—		2	$	0.9
Commercial and industrial		4		1.5		5		0.6
Equipment financing		15		6.8		20		5.9
Total		19		8.3		27		7.4
Retail:
Residential mortgage		9		2.7		10		1.9
Home equity		11		1.3		7		0.5
Other consumer		—		—		—		—
Total		20		4.0		17		2.4
Total		39	$	12.3		44	$	9.8

Summary of Individually-Evaluated Impaired Loans by Class of Loan

People’s United’s impaired loans consist of certain loans that have been placed on non-accrual status, including all TDRs. The following table summarizes, by class of loan, information related to individually-evaluated impaired loans.

	As of September 30, 2017						As of December 31, 2016
(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	$	50.7	$	46.1	$	—	$	41.4	$	40.0	$	—
Commercial and industrial		39.3		36.7		—		50.7		45.7		—
Equipment financing		42.8		39.1		—		38.2		35.3		—
Retail:
Residential mortgage		66.8		60.0		—		63.6		58.0		—
Home equity		23.5		20.0		—		22.4		18.7		—
Other consumer		—		—		—		—		—		—
Total	$	223.1	$	201.9	$	—	$	216.3	$	197.7	$	—
With a related allowance for loan losses:
Commercial:
Commercial real estate	$	13.5	$	12.8	$	1.2	$	12.2	$	11.4	$	0.6
Commercial and industrial		25.2		24.6		3.0		25.9		25.0		4.7
Equipment financing		14.1		13.2		1.5		5.0		4.4		0.5
Retail:
Residential mortgage		12.4		12.4		1.7		13.1		13.1		2.3
Home equity		1.9		1.9		0.7		2.1		2.0		0.9
Other consumer		—		—		—		—		—		—
Total	$	67.1	$	64.9	$	8.1	$	58.3	$	55.9	$	9.0
Total impaired loans:
Commercial:
Commercial real estate	$	64.2	$	58.9	$	1.2	$	53.6	$	51.4	$	0.6
Commercial and industrial		64.5		61.3		3.0		76.6		70.7		4.7
Equipment financing		56.9		52.3		1.5		43.2		39.7		0.5
Total		185.6		172.5		5.7		173.4		161.8		5.8
Retail:
Residential mortgage		79.2		72.4		1.7		76.7		71.1		2.3
Home equity		25.4		21.9		0.7		24.5		20.7		0.9
Other consumer		—		—		—		—		—		—
Total		104.6		94.3		2.4		101.2		91.8		3.2
Total	$	290.2	$	266.8	$	8.1	$	274.6	$	253.6	$	9.0

Schedule of Impaired Financing Receivable

The following tables summarize, 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.

	Three Months Ended September 30,
	2017				2016
(in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	61.8	$	0.3	$	54.1	$	0.4
Commercial and industrial		59.7		0.7		60.5		0.3
Equipment financing		46.5		0.2		38.2		0.1
Total		168.0		1.2		152.8		0.8
Retail:
Residential mortgage		72.4		0.4		71.7		0.4
Home equity		21.8		0.1		21.3		0.1
Other consumer		—		—		—		—
Total		94.2		0.5		93.0		0.5
Total	$	262.2	$	1.7	$	245.8	$	1.3

	Nine Months Ended September 30,
	2017				2016
(in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial real estate	$	56.9	$	0.9	$	58.6	$	1.1
Commercial and industrial		66.1		1.6		61.9		1.2
Equipment financing		43.0		0.4		35.9		0.2
Total		166.0		2.9		156.4		2.5
Retail:
Residential mortgage		71.9		1.3		72.1		1.2
Home equity		21.1		0.3		21.9		0.2
Other consumer		—		—		—		—
Total		93.0		1.6		94.0		1.4
Total	$	259.0	$	4.5	$	250.4	$	3.9

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 September 30, 2017 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	10,158.6	$	20.3	$	15.2	$	35.5	$	10,194.1
Commercial and industrial		7,943.2		10.1		18.0		28.1		7,971.3
Equipment financing		2,942.7		88.4		8.0		96.4		3,039.1
Total		21,044.5		118.8		41.2		160.0		21,204.5
Retail:
Residential mortgage		6,455.4		31.8		20.4		52.2		6,507.6
Home equity		1,968.5		7.0		6.3		13.3		1,981.8
Other consumer		46.5		0.8		—		0.8		47.3
Total		8,470.4		39.6		26.7		66.3		8,536.7
Total originated loans	$	29,514.9	$	158.4	$	67.9	$	226.3	$	29,741.2

			Past Due
As of December 31, 2016 (in millions)	Current		30-89 Days		90 Days or More		Total		Total Originated
Commercial:
Commercial real estate	$	9,989.9	$	10.9	$	11.8	$	22.7	$	10,012.6
Commercial and industrial		7,899.2		10.0		29.8		39.8		7,939.0
Equipment financing		2,941.5		68.4		11.0		79.4		3,020.9
Total		20,830.6		89.3		52.6		141.9		20,972.5
Retail:
Residential mortgage		6,027.5		22.0		17.8		39.8		6,067.3
Home equity		2,030.3		5.2		9.4		14.6		2,044.9
Other consumer		49.7		0.3		—		0.3		50.0
Total		8,107.5		27.5		27.2		54.7		8,162.2
Total originated loans	$	28,938.1	$	116.8	$	79.8	$	196.6	$	29,134.7

Summary of Credit Quality Indicators by Class of Loan

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

As of September 30, 2017 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,926.2	$	7,588.1	$	2,619.7	$	20,134.0
Special mention		129.1		122.8		101.8		353.7
Substandard		137.9		259.6		317.6		715.1
Doubtful		0.9		0.8		—		1.7
Total originated loans		10,194.1		7,971.3		3,039.1		21,204.5
Acquired loans:
Pass		940.9		562.2		666.5		2,169.6
Special mention		6.2		42.4		—		48.6
Substandard		38.6		48.8		—		87.4
Doubtful		0.7		—		—		0.7
Total acquired loans		986.4		653.4		666.5		2,306.3
Total	$	11,180.5	$	8,624.7	$	3,705.6	$	23,510.8
As of September 30, 2017 (in millions)	Residential Mortgage		Home Equity		Other Consumer		Total
Retail:
Originated loans:
Low risk	$	3,259.8	$	928.2	$	27.2	$	4,215.2
Moderate risk		2,715.9		652.2		8.0		3,376.1
High risk		531.9		401.4		12.1		945.4
Total originated loans		6,507.6		1,981.8		47.3		8,536.7
Acquired loans:
Low risk		154.9		—		—		154.9
Moderate risk		60.2		—		—		60.2
High risk		58.3		59.7		3.9		121.9
Total acquired loans		273.4		59.7		3.9		337.0
Total	$	6,781.0	$	2,041.5	$	51.2	$	8,873.7

As of December 31, 2016 (in millions)	Commercial Real Estate		Commercial and Industrial		Equipment Financing		Total
Commercial:
Originated loans:
Pass	$	9,817.2	$	7,580.6	$	2,617.9	$	20,015.7
Special mention		107.3		121.9		98.8		328.0
Substandard		87.1		233.3		304.2		624.6
Doubtful		1.0		3.2		—		4.2
Total originated loans		10,012.6		7,939.0		3,020.9		20,972.5
Acquired loans:
Pass		182.9		155.5		1.0		339.4
Special mention		13.5		3.6		8.6		25.7
Substandard		37.6		27.0		2.0		66.6
Doubtful		0.7		—		—		0.7
Total acquired loans		234.7		186.1		11.6		432.4
Total	$	10,247.3	$	8,125.1	$	3,032.5	$	21,404.9
	Residential		Home		Other
As of December 31, 2016 (in millions)	Mortgage		Equity		Consumer		Total
Retail:
Originated loans:
Low risk	$	3,016.4	$	950.9	$	31.1	$	3,998.4
Moderate risk		2,538.9		663.9		7.2		3,210.0
High risk		512.0		430.1		11.7		953.8
Total originated loans		6,067.3		2,044.9		50.0		8,162.2
Acquired loans:
Low risk		75.7		—		—		75.7
Moderate risk		27.5		—		—		27.5
High risk		46.2		27.7		0.7		74.6
Total acquired loans		149.4		27.7		0.7		177.8
Total	$	6,216.7	$	2,072.6	$	50.7	$	8,340.0

Summarized Activity in Accretable Yield for Acquired Loan Portfolio

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions)	2017			2016			2017			2016
Balance at beginning of period	$	233.4		$	270.3		$	255.4		$	296.0
Acquisitions		—			—			13.1			—
Accretion		(7.1	)		(9.0	)		(22.5	)		(31.1	)
Reclassification from nonaccretable difference for loans with improved cash flows (1)		—			—			—			—
Other changes in expected cash flows (2)		—			2.4			(19.7	)		(1.2	)
Balance at end of period	$	226.3		$	263.7		$	226.3		$	263.7

(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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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following is a summary of the changes in the components of accumulated other comprehensive loss (“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 AOCL
Balance at December 31, 2016	$	(145.6	)	$	(32.3	)	$	(17.4	)	$	0.3		$	(195.0	)
Other comprehensive income before reclassifications		—			11.1			—			0.3			11.4
Amounts reclassified from AOCL (1)		2.8			9.9			1.6			(0.4	)		13.9
Current period other comprehensive income		2.8			21.0			1.6			(0.1	)		25.3
Balance at September 30, 2017	$	(142.8	)	$	(11.3	)	$	(15.8	)	$	0.2		$	(169.7	)

(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 AOCL
Balance at December 31, 2015	$	(140.0	)	$	(17.7	)	$	(19.5	)	$	0.0		$	(177.2	)
Other comprehensive income (loss) before reclassifications		—			52.4			—			(0.1	)		52.3
Amounts reclassified from AOCL (1)		2.8			(0.1	)		1.5			0.3			4.5
Current period other comprehensive income		2.8			52.3			1.5			0.2			56.8
Balance at September 30, 2016	$	(137.2	)	$	34.6		$	(18.0	)	$	0.2		$	(120.4	)

(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:

	Amounts Reclassified from AOCL
	Three Months Ended September 30,						Nine Months Ended September 30,						Affected Line Item in the Statement Where Net Income is Presented
(in millions)	2017			2016			2017			2016
Details about components of AOCL:
Amortization of pension and other postretirement plans items:
Net actuarial loss	$	(1.7	)	$	(1.7	)	$	(5.1	)	$	(4.8	)	(1)
Prior service credit		0.2			0.2			0.6			0.6		(1)
		(1.5	)		(1.5	)		(4.5	)		(4.2	)	Income before income tax expense
		0.6			0.6			1.7			1.4		Income tax expense
		(0.9	)		(0.9	)		(2.8	)		(2.8	)	Net income
Reclassification adjustment for net realized gains (losses) on securities available for sale		—			—			(15.6	)		0.1		Income before income tax expense (2)
		—			—			5.7			—		Income tax expense
		—			—			(9.9	)		0.1		Net income
Amortization of unrealized losses on securities transferred to held to held to maturity		(0.9	)		(0.9	)		(2.6	)		(2.4	)	Income before income tax expense (3)
		0.3			0.4			1.0			0.9		Income tax expense
		(0.6	)		(0.5	)		(1.6	)		(1.5	)	Net income
Amortization of unrealized gains and losses on cash flow hedges:
Interest rate swaps		0.3			(0.1	)		0.6			(0.6	)	(4)
Interest rate locks		0.1			0.1			0.1			0.1		(4)
		0.4			—			0.7			(0.5	)	Income before income tax expense
		(0.2	)		—			(0.3	)		0.2		Income tax expense
		0.2			—			0.4			(0.3	)	Net income
Total reclassifications for the period	$	(1.3	)	$	(1.4	)	$	(13.9	)	$	(4.5	)

(1) Included in the computation of net periodic benefit income (expense) reflected in compensation and benefits expense (see Note 8 for additional details).

(2) Included in other non-interest income.

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

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

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Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Common 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 below:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions, except per common share data)	2017			2016			2017			2016
Net income available to common shareholders	$	87.3		$	73.7		$	220.4		$	205.1
Dividends paid on and undistributed earnings allocated to participating securities		(0.1	)		(0.2	)		(0.4	)		(0.6	)
Earnings attributable to common shareholders	$	87.2		$	73.5		$	220.0		$	204.5
Weighted average common shares outstanding for basic EPS		336.9			302.9			327.6			302.4
Effect of dilutive equity-based awards		1.9			0.4			2.0			0.4
Weighted average common and common-equivalent shares for diluted EPS		338.8			303.3			329.6			302.8
Basic EPS	$	0.26		$	0.24		$	0.67		$	0.68
Diluted EPS	$	0.26		$	0.24		$	0.67		$	0.68

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Goodwill and Other Acquisition-Related Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2017

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 nine months ended September 30, 2017 and 2016:

	Operating Segment
(in millions)	Commercial Banking			Retail Banking			Wealth Management			Total
Balance at December 31, 2016	$	1,222.1		$	679.6		$	91.0		$	1,992.7
Acquisition of:
Suffolk		229.8			40.5			—			270.3
LEAF		148.4			—			—			148.4
Balance at September 30, 2017	$	1,600.3		$	720.1		$	91.0		$	2,411.4
	Operating Segment
(in millions)	Commercial Banking			Retail Banking			Wealth Management			Total
Balance at December 31, 2015	$	1,222.8		$	681.9		$	54.0		$	1,958.7
Acquisition of Eagle Insurance Group, LLC		—			—			1.4			1.4
Adjustments		(0.7	)		(2.3	)		(0.1	)		(3.1	)
Balance at September 30, 2016	$	1,222.1		$	679.6		$	55.3		$	1,957.0

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Components of Net Periodic Benefit (Income) Expense and Other Amounts

Components of net periodic benefit (income) expense and other amounts recognized in other comprehensive income for the People’s Qualified Plan, the Chittenden Qualified Plan and the Supplemental Plans (together the “Pension Plans”) and the Other Postretirement Plan are as follows:

							Other
	Pension Plans						Postretirement Plan
Three months ended September 30 (in millions)	2017			2016			2017		2016
Net periodic benefit (income) expense:
Service cost	$	—		$	—		$	0.1	$	—
Interest cost		4.9			4.7			0.1		0.2
Expected return on plan assets		(9.6	)		(8.7	)		—		—
Recognized net actuarial loss		1.6			1.6			0.1		0.1
Recognized prior service credit		(0.2	)		(0.2	)		—		—
Settlements		1.1			0.3			—		—
Net periodic benefit (income) expense	$	(2.2	)	$	(2.3	)	$	0.3	$	0.3

							Other
	Pension Plans						Postretirement Plan
Nine months ended September 30 (in millions)	2017			2016			2017			2016
Net periodic benefit (income) expense:
Service cost	$	—		$	—		$	0.2		$	0.2
Interest cost		14.3			14.1			0.4			0.5
Expected return on plan assets		(28.3	)		(25.9	)		—			—
Recognized net actuarial loss		4.9			4.6			0.2			0.2
Recognized prior service credit		(0.6	)		(0.6	)		—			—
Settlements		2.6			0.9			—			—
Net periodic benefit (income) expense		(7.1	)		(6.9	)		0.8			0.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss		(4.9	)		(4.6	)		(0.2	)		(0.2	)
Prior service credit		0.6			0.6			—			—
Total pre-tax changes recognized in other comprehensive income		(4.3	)		(4.0	)		(0.2	)		(0.2	)
Total recognized in net periodic benefit (income) expense and other comprehensive income	$	(11.4	)	$	(10.9	)	$	0.6		$	0.7

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

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 September 30, 2017 (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		741.9		—		—		741.9
GSE mortgage-backed securities and CMOs		—		2,446.6		—		2,446.6
Equity securities		9.0		—		—		9.0
Other assets:				—
Exchange-traded funds		35.0		—		—		35.0
Fixed income securities		—		1.7		—		1.7
Mutual funds		3.6		—		—		3.6
Interest rate swaps/caps		—		101.9		—		101.9
Foreign exchange contracts		—		0.2		—		0.2
Forward commitments to sell residential mortgage loans		—		0.6		—		0.6
Total	$	797.8	$	2,551.0	$	—	$	3,348.8
Financial liabilities:
Interest rate swaps/caps	$	—	$	60.5	$	—	$	60.5
Risk participation agreements (1)		—		—		—		—
Foreign exchange contracts		—		0.2		—		0.2
Interest rate-lock commitments on residential mortgage loans		—		0.7		—		0.7
Total	$	—	$	61.4	$	—	$	61.4

	Fair Value Measurements Using
As of December 31, 2016 (in millions)	Level 1		Level 2		Level 3		Total
Financial assets:
Trading account securities:
U.S. Treasury	$	6.8	$	—	$	—	$	6.8
Securities available for sale:
U.S. Treasury and agency		859.7		—		—		859.7
GSE mortgage-backed securities and CMOs		—		3,550.0		—		3,550.0
Equity securities		—		0.2		—		0.2
Other assets:
Exchange-traded funds		32.6		—		—		32.6
Fixed income securities		—		4.3		—		4.3
Mutual funds		2.7		—		—		2.7
Interest rate swaps/caps		—		173.1		—		173.1
Foreign exchange contracts		—		0.6		—		0.6
Forward commitments to sell residential mortgage loans		—		0.3		—		0.3
Total	$	901.8	$	3,728.5	$	—	$	4,630.3
Financial liabilities:
Interest rate swaps/caps	$	—	$	121.0	$	—	$	121.0
Risk participation agreements (1)		—		—		—		—
Foreign exchange contracts		—		0.3		—		0.3
Interest rate-lock commitments on residential mortgage loans		—		0.4		—		0.4
Total	$	—	$	121.7	$	—	$	121.7

(1) At both September 30, 2017 and December 31, 2016, the fair value of risk participation agreements totaled less than $0.1 million (see Note 12).

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 September 30, 2017 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	15.0	$	—	$	15.0
Impaired loans (2)		—		—		64.9		64.9
REO and repossessed assets (3)		—		—		16.4		16.4
Total	$	—	$	15.0	$	81.3	$	96.3
	Fair Value Measurements Using
As of December 31, 2016 (in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale (1)	$	—	$	39.3	$	—	$	39.3
Impaired loans (2)		—		—		55.9		55.9
REO and repossessed assets (3)		—		—		19.3		19.3
Total	$	—	$	39.3	$	75.2	$	114.5

(1) Consists of residential mortgage loans; no fair value adjustments were recorded for the nine months ended September 30, 2017 and 2016.

(2) Represents the recorded investment in impaired loans with a related allowance for loan losses measured in accordance with applicable accounting guidance. The total consists of $50.6 million of Commercial loans and $14.3 million of Retail loans at September 30, 2017. The provision for loan losses on impaired loans totaled $4.1 million and $3.5 million for the nine months ended September 30, 2017 and 2016, respectively.

(3) Represents: (i) $6.3 million of commercial REO; (ii) $4.7 million of residential REO; and (iii) $5.4 million of repossessed assets at September 30, 2017. Charge-offs to the allowance for loan losses related to loans that were transferred to REO or repossessed assets totaled $2.2 million and $3.3 million for the nine months ended September 30, 2017 and 2016, respectively. Write downs and net loss on sale of foreclosed/repossessed assets charged to non-interest expense totaled $(0.3) million and $2.9 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 September 30, 2017 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	414.1	$	414.1	$	—	$	—	$	414.1
Short-term investments		302.5		—		302.5		—		302.5
Securities held to maturity		3,387.6		—		3,434.1		1.5		3,435.6
FHLB and FRB stock		320.9		—		320.9		—		320.9
Total loans, net (1)		32,086.2		—		6,583.6		25,363.9		31,947.5
Financial liabilities:
Time deposits		5,235.8		—		5,232.4		—		5,232.4
Other deposits		27,311.5		—		27,311.5		—		27,311.5
FHLB advances		3,074.1		—		3,076.0		—		3,076.0
Federal funds purchased		543.0		—		543.0		—		543.0
Customer repurchase agreements		295.8		—		295.8		—		295.8
Other borrowings		231.1		—		230.9		—		230.9
Notes and debentures		906.2		—		902.6		—		902.6

(1) Excludes impaired loans totaling $64.9 million measured at fair value on a non-recurring basis.

			Estimated Fair Value
	Carrying Amount		Measurements Using
As of December 31, 2016 (in millions)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	432.4	$	432.4	$	—	$	—	$	432.4
Short-term investments		181.7		—		181.7		—		181.7
Securities held to maturity		2,005.4		—		2,011.2		1.5		2,012.7
FHLB and FRB stock		315.8		—		315.8		—		315.8
Total loans, net (1)		29,459.7		—		6,028.4		23,238.1		29,266.5
Financial liabilities:
Time deposits		4,542.2		—		4,539.7		—		4,539.7
Other deposits		25,318.6		—		25,318.6		—		25,318.6
FHLB advances		3,061.1		—		3,064.4		—		3,064.4
Federal funds purchased		617.0		—		617.0		—		617.0
Customer repurchase agreements		343.3		—		343.3		—		343.3
Other borrowings		35.4		—		35.4		—		35.4
Notes and debentures		1,030.1		—		1,000.0		—		1,000.0

(1) Excludes impaired loans totaling $55.9 million measured at fair value on a non-recurring basis.

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Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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)
			Notional Amounts				Assets				Liabilities
(in millions)	Type of Hedge		Sept. 30, 2017		Dec. 31, 2016		Sept. 30, 2017		Dec. 31, 2016		Sept. 30, 2017		Dec. 31, 2016
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps/caps:
Commercial customers		N/A	$	6,101.2	$	5,612.2	$	91.5	$	93.9	$	39.7	$	46.9
Institutional counterparties		N/A		5,958.2		5,620.2		10.4		65.6		20.8		74.0
Risk participation agreements (2)		N/A		383.4		251.9		—		—		—		—
Foreign exchange contracts		N/A		42.6		101.2		0.2		0.6		0.2		0.3
Forward commitments to sell residential mortgage loans		N/A		26.0		48.6		0.6		0.3		—		—
Interest rate-lock commitments on residential mortgage loans		N/A		31.7		57.0		—		—		0.7		0.4
Total								102.7		160.4		61.4		121.6
Derivatives Designated as Hedging Instruments:
Interest rate swaps:
Subordinated notes		Fair value		375.0		375.0		—		13.6		—		—
Loans		Cash flow		210.0		—		—		—		—		—
Subordinated notes		Cash flow		—		125.0		—		—		—		0.1
Total								—		13.6		—		0.1
Total fair value of derivatives							$	102.7	$	174.0	$	61.4	$	121.7

(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
Nine months ended September 30 (in millions)			2017			2016			2017		2016
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps/caps:
Commercial customers		N/A	$	45.4		$	210.7		$	—	$	—
Institutional counterparties		N/A		(39.1	)		(200.3	)		—		—
Foreign exchange contracts		N/A		0.3			(0.6	)		—		—
Risk participation agreements		N/A		0.5			0.1			—		—
Forward commitments to sell residential mortgage loans		N/A		0.1			0.8			—		—
Interest rate-lock commitments on residential mortgage loans		N/A		(0.1	)		(1.1	)		—		—
Total				7.1			9.6			—		—
Derivatives Designated as Hedging Instruments:
Interest rate swaps		Fair value		4.5			6.4			—		—
Interest rate swaps		Cash flow		0.6			(0.6	)		—		(0.2	)
Interest rate locks		Cash flow		0.1			0.1			—		—
Total				5.2			5.9			—		(0.2	)
Total			$	12.3		$	15.5		$	—	$	(0.2	)

(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)

9 Months Ended

Sep. 30, 2017

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
							Financial						Net
As of September 30, 2017 (in millions)							Instruments			Collateral			Amount
Financial assets:
Interest rate swaps/caps:
Counterparty A	$	1.7	$	—	$	1.7	$	(1.7	)	$	—		$	—
Counterparty B		0.8		—		0.8		(0.8	)		—			—
Counterparty C		1.4		—		1.4		(1.4	)		—			—
Counterparty D		2.8		—		2.8		(2.8	)		—			—
Counterparty E		2.4		—		2.4		—			—			2.4
Other counterparties		1.3		—		1.3		(0.3	)		(0.9	)		0.1
Foreign exchange contracts		0.2		—		0.2		—			—			0.2
Total	$	10.6	$	—	$	10.6	$	(7.0	)	$	(0.9	)	$	2.7
Financial liabilities:
Interest rate swaps/caps:
Counterparty A	$	3.2	$	—	$	3.2	$	(1.7	)	$	(1.5	)	$	—
Counterparty B		6.9		—		6.9		(0.8	)		(6.1	)		—
Counterparty C		3.7		—		3.7		(1.4	)		(2.3	)		—
Counterparty D		5.9		—		5.9		(2.8	)		(3.1	)		—
Other counterparties		1.2		—		1.2		(0.3	)		(0.9	)		—
Foreign exchange contracts		0.2		—		0.2		—			—			0.2
Total	$	21.1	$	—	$	21.1	$	(7.0	)	$	(13.9	)	$	0.2

	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset
							Financial						Net
As of December 31, 2016 (in millions)							Instruments			Collateral			Amount
Financial assets:
Interest rate swaps/caps:
Counterparty A	$	1.9	$	—	$	1.9	$	(1.9	)	$	—		$	—
Counterparty B		1.0		—		1.0		(1.0	)		—			—
Counterparty C		1.7		—		1.7		(1.7	)		—			—
Counterparty D		3.4		—		3.4		(3.4	)		—			—
Counterparty E		69.6		—		69.6		(50.0	)		(19.6	)		—
Other counterparties		1.6		—		1.6		(0.3	)		(1.3	)		—
Foreign exchange contracts		0.6		—		0.6		—			—			0.6
Total	$	79.8	$	—	$	79.8	$	(58.3	)	$	(20.9	)	$	0.6
Financial liabilities:
Interest rate swaps/caps:
Counterparty A	$	4.3	$	—	$	4.3	$	(1.9	)	$	(2.4	)	$	—
Counterparty B		7.7		—		7.7		(1.0	)		(6.7	)		—
Counterparty C		3.4		—		3.4		(1.7	)		(1.1	)		0.6
Counterparty D		6.9		—		6.9		(3.4	)		(1.7	)		1.8
Counterparty E		50.0		—		50.0		(50.0	)		—			—
Other counterparties		1.8		—		1.8		(0.3	)		(1.5	)		—
Foreign exchange contracts		0.3		—		0.3		—			—			0.3
Total	$	74.4	$	—	$	74.4	$	(58.3	)	$	(13.4	)	$	2.7

Summary of Collateral Swaps

The following table shows the extent to which assets and liabilities exchanged under resale and repurchase agreements have been offset in the Consolidated Statements of Condition. These agreements: (i) are entered into simultaneously with the same financial institution counterparty; (ii) have the same principal amounts and inception/maturity dates; and (iii) are subject to a master netting arrangement that contains a conditional right of offset upon default. At September 30, 2017, the Company posted as collateral marketable securities with a fair value of $248.3 million and, in turn, accepted as collateral marketable securities with a fair value of $254.4 million.

As of September 30, 2017 (in millions)	Gross Amount Recognized		Gross Amount Offset			Net Amount Presented
Total resale agreements	$	250.0	$	(250.0	)	$	—
Total repurchase agreements	$	250.0	$	(250.0	)	$	—

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General - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Affordable housing investments	$ 250.0		$ 250.0		$ 195.2
Future contingent commitments	109.6		$ 109.6		$ 92.5
Amortization period			10 years
Amortization expense included in income tax expense	$ 4.2	$ 3.0	$ 12.3	$ 8.9

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Acquisitions - Additional Information (Detail) shares in Millions, $ in Millions			3 Months Ended		9 Months Ended
	Aug. 01, 2017 USD ($)	Apr. 01, 2017 USD ($) Branches shares	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) Securitization	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Interest income on loans acquired			$ 300.6	$ 249.5	$ 836.2	$ 735.7
Loans outstanding principal balance			630.6		630.6		$ 707.0
Tax deductible goodwill amount			73.2		73.2		$ 77.9
LEAF Commercial Capital, Inc. [Member]
Business Acquisition [Line Items]
Business acquisition cash consideration transferred	$ 220.0
Business acquisition, date of acquisition agreement	Aug. 01, 2017
Merger-related expenses					2.2
Net deferred tax liabilities			3.9		3.9
Repayment of borrowings					$ 460.0
Number of remaining securitization which can be repaid without penalty in 2018 | Securitization					1
Loans	$ 717.9
Suffolk Bancorp [Member]
Business Acquisition [Line Items]
Merger-related expenses					$ 26.5	$ 1.9
Net deferred tax liabilities			0.3		$ 0.3
Business acquisition common stock shares | shares		26.6
Business acquisition common stock fair value		$ 485.0
Number of branches acquired | Branches		27
Loans		$ 1,617.5
Suffolk Bancorp [Member] | Core Deposit Intangible [Member]
Business Acquisition [Line Items]
Amortization period for core deposit intangible					6 years
Businesses Acquired in 2017 [Member]
Business Acquisition [Line Items]
Interest income on loans acquired					$ 44.0
Businesses Acquired in 2017 [Member] | Purchased Credit Impaired Loans [Member]
Business Acquisition [Line Items]
Loans			57.0		57.0
Loans outstanding principal balance			67.0		67.0
Businesses Acquired in 2017 [Member] | Purchased Performing Loans [Member]
Business Acquisition [Line Items]
Loans			2,280.0		2,280.0
Loans outstanding principal balance			$ 2,320.0		$ 2,320.0

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Acquisitions - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Aug. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill	$ 2,411.4			$ 1,992.7	$ 1,957.0	$ 1,958.7
LEAF Commercial Capital, Inc. [Member]
Business Acquisition [Line Items]
Cash and cash equivalents		$ 74.9
Loans		717.9
Goodwill		148.4
Premises and equipment		2.4
Other assets		13.0
Total assets		957.7
Liabilities:
Borrowings		708.1
Other liabilities		29.6
Total liabilities		737.7
Total purchase price		220.0
LEAF Commercial Capital, Inc. [Member] | Trade Name [Member]
Business Acquisition [Line Items]
Core deposit intangible		0.9
LEAF Commercial Capital, Inc. [Member] | Noncompete Agreements [Member]
Business Acquisition [Line Items]
Core deposit intangible		$ 0.2
Suffolk Bancorp [Member]
Business Acquisition [Line Items]
Cash and cash equivalents			$ 174.0
Securities			167.4
Loans			1,617.5
Goodwill			270.3
Core deposit intangible			28.1
Premises and equipment			40.4
Bank-owned life insurance			54.1
Other real estate owned			0.5
Other assets			28.9
Total assets			2,381.2
Liabilities:
Deposits			1,852.4
Borrowings			15.1
Other liabilities			28.9
Total liabilities			1,896.4
Total purchase price			$ 484.8

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Acquisitions - Summary of Pro Forma Financial Information Reflecting Acquisition (Detail) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Selected Financial Results:
Net interest income	$ 835.9	$ 797.3
Provision for loan losses	18.5	28.9
Non-interest income	275.5	275.5
Non-interest expense	720.6	707.1
Net income	258.0	227.7
Net income applicable to common shareholders	$ 247.5	$ 227.7
Basic and diluted earnings per common share	$ 0.73	$ 0.69

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Securities and Short-Term Investments - Available-for-Sale and Held-to-Maturity Securities Gains (Losses) (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Investment Holdings [Line Items]
Amortized Cost	$ 3,220.6	$ 4,463.2
Gross Unrealized Gains	11.6	15.3
Gross Unrealized Losses	(34.7)	(68.6)
Fair Value	3,197.5	4,409.9
Held to maturity Securities, Amortized Cost	3,387.6	2,005.4
Securities held to maturity, Gross Unrealized Gains	63.0	33.9
Securities held to maturity, Gross Unrealized Losses	(15.0)	(26.7)
Total securities held to maturity, Fair Value	3,435.6	2,012.6
State and Municipal [Member]
Investment Holdings [Line Items]
Held to maturity Securities, Amortized Cost	1,999.2	1,499.1
Securities held to maturity, Gross Unrealized Gains	60.7	33.9
Securities held to maturity, Gross Unrealized Losses	(8.5)	(23.5)
Total securities held to maturity, Fair Value	2,051.4	1,509.5
GSE Residential Mortgage-Backed Securities and CMOs [Member]
Investment Holdings [Line Items]
Amortized Cost	2,450.1	3,573.1
Gross Unrealized Gains	11.5	15.0
Gross Unrealized Losses	(15.0)	(38.1)
Fair Value	2,446.6	3,550.0
Held to maturity Securities, Amortized Cost	1,344.6	500.8
Securities held to maturity, Gross Unrealized Gains	1.5
Securities held to maturity, Gross Unrealized Losses	(6.5)	(3.2)
Total securities held to maturity, Fair Value	1,339.6	497.6
Debt Securities [Member]
Investment Holdings [Line Items]
Amortized Cost	3,211.0	4,463.0
Gross Unrealized Gains	11.6	15.3
Gross Unrealized Losses	(34.1)	(68.6)
Fair Value	3,188.5	4,409.7
Equity Securities [Member]
Investment Holdings [Line Items]
Amortized Cost	9.6	0.2
Gross Unrealized Losses	(0.6)
Fair Value	9.0	0.2
U.S. Treasury and Agency [Member]
Investment Holdings [Line Items]
Amortized Cost	760.9	889.9
Gross Unrealized Gains	0.1	0.3
Gross Unrealized Losses	(19.1)	(30.5)
Fair Value	741.9	859.7
Corporate [Member]
Investment Holdings [Line Items]
Held to maturity Securities, Amortized Cost	42.3	4.0
Securities held to maturity, Gross Unrealized Gains	0.8
Total securities held to maturity, Fair Value	43.1	4.0
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 and Short-Term Investments - Available-for-Sale and Held-to-Maturity Securities Gains (Losses) (Parenthetical) (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($)
Amortized Cost and Fair Value Debt Securities [Abstract]
Fair value of ownership interest exchanged	$ 10.8

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Securities and Short-Term Investments - Additional Information (Detail)	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2017 USD ($) Securities Security	Mar. 31, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) Securities Security	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Investment [Line Items]
Security available for sale with a fair value pledged with collateral for public deposits	$ 2,920,000,000			$ 2,920,000,000		$ 1,830,000,000
Number of securities available for sale | Security	96			96
Number of securities held to maturity | Securities	453			453
Total number of securities owned | Security				2,046
Percentage of securities available for sale	27.00%			27.00%
Available for sale of securities gross unrealized losses	$ 34,700,000			$ 34,700,000		68,600,000
Held to maturity securities gross unrealized losses	15,000,000			15,000,000
Impairment losses on securities recognized in earnings	0		$ 0	0	$ 0
Amortized cost of mortgage-backed securities	3,211,000,000			3,211,000,000
Impairment of investments				$ 0
Federal Reserve Bank stock percentage				6.00%
Federal Reserve Bank of New York [Member]
Investment [Line Items]
Acquired shares of capital stock	169,400,000			$ 169,400,000		149,500,000
Interest-bearing deposits	259,400,000			$ 259,400,000		$ 169,800,000
Federal funds sold and yield				1.25%		0.75%
Maximum [Member]
Investment [Line Items]
Debt securities with unrealized losses				$ 100,000
State and Municipal [Member]
Investment [Line Items]
Held to maturity securities gross unrealized losses	8,500,000			$ 8,500,000		$ 23,500,000
Available for sale securities average maturity period				12 years
GSE Residential Mortgage-Backed Securities and CMOs [Member]
Investment [Line Items]
Available for sale of securities gross unrealized losses	15,000,000			$ 15,000,000		38,100,000
Held to maturity securities gross unrealized losses	6,500,000			$ 6,500,000		3,200,000
Available for sale securities average maturity period				11 years
Amortized cost of mortgage-backed securities	2,450,100,000			$ 2,450,100,000
U.S. Treasury and CMO Securities [Member]
Investment [Line Items]
Amortized cost of mortgage-backed securities		$ 487,000,000
Gain (loss) on sales of Mortgage Backed Securities		$ 15,700,000
FHLB of Boston [Member]
Investment [Line Items]
Acquired shares of capital stock	139,500,000			139,500,000		155,000,000
FHLB of New York [Member]
Investment [Line Items]
Acquired shares of capital stock	$ 12,000,000			$ 12,000,000		$ 11,300,000

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Securities and Short-Term Investments - Summary of Amortized Cost and Fair Value of Debt Securities Based on Remaining Period to Contractual Maturity (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Investment [Line Items]
Available for Sale, Amortized Cost, Within 1 year	$ 1.0
Available for Sale, Amortized Cost, After 1 but within 5 years	361.3
Available for Sale, Amortized Cost, After 5 but within 10 years	1,003.2
Available for Sale, Amortized Cost, After 10 years	1,845.5
Available for Sale, Amortized Cost, Total	3,211.0
Available for Sale, Fair Value, Within 1 year	1.0
Available for Sale, Fair Value, After 1 but within 5 years	355.0
Available for Sale, Fair Value, After 5 but within 10 years	999.8
Available for Sale, Fair Value, After 10 years	1,832.7
Available for Sale, Fair Value, Total	3,188.5
Held to Maturity, Amortized Cost, Within 1 year	18.7
Held to Maturity, Amortized Cost, After 1 but within 5 years	190.0
Held to Maturity, Amortized Cost, After 5 but within 10 years	1,214.8
Held to Maturity, Amortized Cost, After 10 years	1,964.1
Held to maturity Securities, Amortized Cost	3,387.6	$ 2,005.4
Held to Maturity, Fair Value, Within 1 year	18.7
Held to Maturity, Fair Value, After 1 but within 5 years	193.3
Held to Maturity, Fair Value, After 5 but within 10 years	1,231.7
Held to Maturity, Fair Value, After 10 years	1,991.9
Held to Maturity, Fair Value, Total	3,435.6	2,012.6
U.S. Treasury and Agency [Member]
Investment [Line Items]
Available for Sale, Amortized Cost, Within 1 year	1.0
Available for Sale, Amortized Cost, After 1 but within 5 years	361.3
Available for Sale, Amortized Cost, After 5 but within 10 years	398.6
Available for Sale, Amortized Cost, Total	760.9
Available for Sale, Fair Value, Within 1 year	1.0
Available for Sale, Fair Value, After 1 but within 5 years	355.0
Available for Sale, Fair Value, After 5 but within 10 years	385.9
Available for Sale, Fair Value, Total	741.9
GSE Residential Mortgage-Backed Securities and CMOs [Member]
Investment [Line Items]
Available for Sale, Amortized Cost, After 5 but within 10 years	604.6
Available for Sale, Amortized Cost, After 10 years	1,845.5
Available for Sale, Amortized Cost, Total	2,450.1
Available for Sale, Fair Value, After 5 but within 10 years	613.9
Available for Sale, Fair Value, After 10 years	1,832.7
Available for Sale, Fair Value, Total	2,446.6
Held to Maturity, Amortized Cost, After 1 but within 5 years	69.4
Held to Maturity, Amortized Cost, After 5 but within 10 years	834.3
Held to Maturity, Amortized Cost, After 10 years	440.9
Held to maturity Securities, Amortized Cost	1,344.6	500.8
Held to Maturity, Fair Value, After 1 but within 5 years	69.4
Held to Maturity, Fair Value, After 5 but within 10 years	830.4
Held to Maturity, Fair Value, After 10 years	439.8
Held to Maturity, Fair Value, Total	1,339.6	497.6
State and Municipal [Member]
Investment [Line Items]
Held to Maturity, Amortized Cost, Within 1 year	18.7
Held to Maturity, Amortized Cost, After 1 but within 5 years	114.1
Held to Maturity, Amortized Cost, After 5 but within 10 years	343.2
Held to Maturity, Amortized Cost, After 10 years	1,523.2
Held to maturity Securities, Amortized Cost	1,999.2	1,499.1
Held to Maturity, Fair Value, Within 1 year	18.7
Held to Maturity, Fair Value, After 1 but within 5 years	117.4
Held to Maturity, Fair Value, After 5 but within 10 years	363.2
Held to Maturity, Fair Value, After 10 years	1,552.1
Held to Maturity, Fair Value, Total	2,051.4	1,509.5
Corporate [Member]
Investment [Line Items]
Held to Maturity, Amortized Cost, After 1 but within 5 years	5.0
Held to Maturity, Amortized Cost, After 5 but within 10 years	37.3
Held to maturity Securities, Amortized Cost	42.3	4.0
Held to Maturity, Fair Value, After 1 but within 5 years	5.0
Held to Maturity, Fair Value, After 5 but within 10 years	38.1
Held to Maturity, Fair Value, Total	43.1	4.0
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

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Securities and Short-Term Investments - Continuous Unrealized Loss Position on Available-for-Sale and Held-to-Maturities Securities (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value	$ 3,193.8	$ 4,247.2
Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(23.9)	(83.8)
Continuous Unrealized Loss Position, 12 Months Or Longer, Fair Value	871.5	396.9
Continuous Unrealized Loss Position, 12 Months Or Longer, Unrealized Losses	(25.8)	(11.5)
Continuous Unrealized Loss Position, Total, Fair Value	4,065.3	4,644.1
Continuous Unrealized Loss Position, Total, Unrealized Losses	(49.7)	(95.3)
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(15.0)
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	1,029.5	497.6
Held To Maturity Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(6.5)	(3.2)
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Fair Value	1,029.5	497.6
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(6.5)	(3.2)
Available for Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value	1,675.6	2,339.6
Available for Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(12.1)	(26.6)
Available for Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Fair Value	133.9	396.9
Available for Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Unrealized Losses	(2.9)	(11.5)
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Fair Value	1,809.5	2,736.5
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(15.0)	(38.1)
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	206.6	828.3
Available for Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(3.0)	(30.5)
Available for Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Fair Value	530.1
Available for Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Unrealized Losses	(16.1)
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Fair Value	736.7	828.3
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(19.1)	(30.5)
Equity Securities [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	9.0
Available for Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(0.6)
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Fair Value	9.0
Available for Sale Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(0.6)
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	270.3	581.7
Held To Maturity Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Unrealized Losses	(1.7)	(23.5)
Held To Maturity Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Fair Value	207.5
Held To Maturity Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Unrealized Losses	(6.8)
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Fair Value	477.8	581.7
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Unrealized Losses	(8.5)	$ (23.5)
Corporate [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	2.8
Held To Maturity Securities, Continuous Unrealized Loss Position, Total, Fair Value	$ 2.8

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Loans - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) Segments Rating	Sep. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2011 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of segments | Segments			2
Net deferred loan costs	$ 73,100,000		$ 73,100,000			$ 69,900,000
Recorded investments, non-performing loans	174,300,000		$ 174,300,000			148,000,000
Number of days of non accrual status			90 days
Accruing interest total	0		$ 0			0
Allowance for loan losses	233,400,000	$ 226,300,000	233,400,000	$ 226,300,000	$ 231,600,000	229,300,000	$ 220,400,000	$ 211,000,000
Interest Income Recognized	1,700,000	1,300,000	$ 4,500,000	3,900,000
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									$ 7,650,000,000
Expected cash flows									7,090,000,000
Loan portfolio fair value									5,420,000,000
Aggregate loan nonaccretable difference									560,100,000
Portfolio accretable yield	226,300,000	263,700,000	$ 226,300,000	263,700,000	233,400,000	255,400,000	270,300,000	296,000,000
Portfolio outstanding balance	630,600,000		630,600,000			707,000,000
Portfolio carrying value	541,200,000		541,200,000			610,200,000
Repossessed assets	5,400,000		5,400,000			7,200,000
Commercial Real Estate Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Early non-performing loans	21,700,000		21,700,000			10,500,000
Real estate owned	6,300,000		6,300,000			4,000,000
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Early non-performing loans	20,700,000		20,700,000			24,800,000
Equipment Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Early non-performing loans	46,100,000		46,100,000			28,400,000
Residential Mortgage Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned	4,700,000		4,700,000			8,100,000
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans	125,700,000		125,700,000			103,200,000
Allowance for loan losses	203,500,000	202,100,000	203,500,000	202,100,000	201,900,000	204,900,000	196,900,000	189,700,000
Interest Income Recognized	1,200,000	800,000	2,900,000	2,500,000
Commercial [Member] | Commercial Real Estate Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans	36,700,000		36,700,000			22,300,000
Interest Income Recognized	300,000	400,000	900,000	1,100,000
Commercial [Member] | Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans	34,900,000		34,900,000			41,500,000
Interest Income Recognized	700,000	300,000	1,600,000	1,200,000
Commercial [Member] | Equipment Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans	54,100,000		54,100,000			39,400,000
Interest Income Recognized	200,000	100,000	400,000	200,000
Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans	48,600,000		48,600,000			44,800,000
Allowance for loan losses	29,900,000	24,200,000	29,900,000	24,200,000	29,700,000	24,400,000	23,500,000	21,300,000
Interest Income Recognized	500,000	500,000	$ 1,600,000	1,400,000
Duration of extension for payment deferral on TDRs, years			5 years
Retail Loans [Member] | Residential Mortgage Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans	33,800,000		$ 33,800,000			27,400,000
Interest Income Recognized	400,000	400,000	$ 1,300,000	1,200,000
Maximum [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Duration of extension for payment deferral on TDRs, years			2 years
Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan agreement			6 months
At Acquisition [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio accretable yield									$ 1,670,000,000
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans	24,500,000		$ 24,500,000			24,700,000
Allowance for loan losses	4,200,000		4,200,000			6,300,000
Acquired Loans [Member] | Purchased Performing Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans	2,100,000		2,100,000
Acquired Loans [Member] | Purchased Performing Loans [Member] | Subsequent to Acquisition [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investments, non-performing loans	500,000		500,000
Acquired Loans [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	4,000,000	7,100,000	4,000,000	7,100,000	3,600,000	6,100,000	7,200,000	7,900,000
Acquired Loans [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	200,000	200,000	200,000	200,000	$ 100,000	200,000	$ 200,000	$ 200,000
Troubled Debt Restructurings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment in originated loans classified as TDRs	194,400,000		194,400,000			189,900,000
Allowance for loan losses	4,600,000		4,600,000			4,200,000
Interest Income Recognized	1,400,000	$ 1,200,000	3,700,000	$ 3,300,000
Foreclosure or Bankruptcy [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Early non-performing loans	$ 21,900,000		$ 21,900,000			$ 17,600,000

XML

Loans - Summary of Loans by Loan Portfolio Segment and Class (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 32,384.5	$ 29,744.9
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	23,510.8	21,404.9
Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8,873.7	8,340.0
Commercial Real Estate Loan [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	11,180.5	10,247.3
Commercial and Industrial [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8,624.7	8,125.1
Equipment Financing [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	3,705.6	3,032.5
Residential Mortgage Adjustable Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	5,948.4	5,549.1
Residential Mortgage Fixed Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	832.6	667.6
Residential Mortgage Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	6,781.0	6,216.7
Home Equity Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,041.5	2,072.6
Other Consumer [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	51.2	50.7
Home Equity and Other Consumer [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,092.7	2,123.3
Originated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	29,741.2	29,134.7
Originated [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	21,204.5	20,972.5
Originated [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8,536.7	8,162.2
Originated [Member] | Commercial Real Estate Loan [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	10,194.1	10,012.6
Originated [Member] | Commercial and Industrial [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	7,971.3	7,939.0
Originated [Member] | Equipment Financing [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	3,039.1	3,020.9
Originated [Member] | Residential Mortgage Adjustable Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	5,800.9	5,453.8
Originated [Member] | Residential Mortgage Fixed Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	706.7	613.5
Originated [Member] | Residential Mortgage Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	6,507.6	6,067.3
Originated [Member] | Home Equity Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,981.8	2,044.9
Originated [Member] | Other Consumer [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	47.3	50.0
Originated [Member] | Home Equity and Other Consumer [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,029.1	2,094.9
Acquired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,643.3	610.2
Acquired Loans [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,306.3	432.4
Acquired Loans [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	337.0	177.8
Acquired Loans [Member] | Commercial Real Estate Loan [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	986.4	234.7
Acquired Loans [Member] | Commercial and Industrial [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	653.4	186.1
Acquired Loans [Member] | Equipment Financing [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	666.5	11.6
Acquired Loans [Member] | Residential Mortgage Adjustable Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	147.5	95.3
Acquired Loans [Member] | Residential Mortgage Fixed Rate [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	125.9	54.1
Acquired Loans [Member] | Residential Mortgage Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	273.4	149.4
Acquired Loans [Member] | Home Equity Loan [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	59.7	27.7
Acquired Loans [Member] | Other Consumer [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	3.9	0.7
Acquired Loans [Member] | Home Equity and Other Consumer [Member] | Retail Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 63.6	$ 28.4

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Loans - Summary, by Loan Portfolio Segment, of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	$ 231.6	$ 220.4	$ 229.3	$ 211.0
Charge-offs	(6.8)	(3.9)	(20.0)	(17.7)
Recoveries	1.6	1.4	5.6	4.1
Net loan charge-offs	(5.2)	(2.5)	(14.4)	(13.6)
Provision for loan losses	7.0	8.4	18.5	28.9
Balance at end of period	233.4	226.3	233.4	226.3
Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period			6.3
Balance at end of period	4.2		4.2
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	201.9	196.9	204.9	189.7
Charge-offs	(5.0)	(2.8)	(14.9)	(11.1)
Recoveries	1.0	0.9	3.9	1.6
Net loan charge-offs	(4.0)	(1.9)	(11.0)	(9.5)
Provision for loan losses	5.6	7.1	9.6	21.9
Balance at end of period	203.5	202.1	203.5	202.1
Commercial [Member] | Originated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	198.3	189.7	198.8	181.8
Charge-offs	(4.0)	(2.7)	(12.0)	(10.7)
Recoveries	0.9	0.9	3.8	1.6
Net loan charge-offs	(3.1)	(1.8)	(8.2)	(9.1)
Provision for loan losses	4.3	7.1	8.9	22.3
Balance at end of period	199.5	195.0	199.5	195.0
Commercial [Member] | Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	3.6	7.2	6.1	7.9
Charge-offs	(1.0)	(0.1)	(2.9)	(0.4)
Recoveries	0.1		0.1
Net loan charge-offs	(0.9)	(0.1)	(2.8)	(0.4)
Provision for loan losses	1.3		0.7	(0.4)
Balance at end of period	4.0	7.1	4.0	7.1
Retail Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	29.7	23.5	24.4	21.3
Charge-offs	(1.8)	(1.1)	(5.1)	(6.6)
Recoveries	0.6	0.5	1.7	2.5
Net loan charge-offs	(1.2)	(0.6)	(3.4)	(4.1)
Provision for loan losses	1.4	1.3	8.9	7.0
Balance at end of period	29.9	24.2	29.9	24.2
Retail Loans [Member] | Originated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	29.6	23.3	24.2	21.1
Charge-offs	(1.8)	(1.1)	(5.1)	(6.6)
Recoveries	0.6	0.5	1.7	2.5
Net loan charge-offs	(1.2)	(0.6)	(3.4)	(4.1)
Provision for loan losses	1.3	1.3	8.9	7.0
Balance at end of period	29.7	24.0	29.7	24.0
Retail Loans [Member] | Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	0.1	0.2	0.2	0.2
Provision for loan losses	0.1
Balance at end of period	$ 0.2	$ 0.2	$ 0.2	$ 0.2

XML

Loans - Summary of Allowance for Loan Losses by Loan Portfolio Segment and Impairment Methodology (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Originated Loans Individually Evaluated for Impairment, Portfolio	$ 266.8		$ 253.6
Originated Loans Individually Evaluated for Impairment, Allowance	8.1		9.0
Originated Loans Collectively Evaluated for Impairment, Portfolio	29,474.4		28,881.1
Originated Loans Collectively Evaluated for Impairment, Allowance	221.1		214.0
Loans, Portfolio	32,384.5		29,744.9
Total Allowance	233.4	$ 231.6	229.3	$ 226.3	$ 220.4	$ 211.0
Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, Portfolio	2,643.3		610.2
Total Allowance	4.2		6.3
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Originated Loans Individually Evaluated for Impairment, Portfolio	172.5		161.8
Originated Loans Individually Evaluated for Impairment, Allowance	5.7		5.8
Originated Loans Collectively Evaluated for Impairment, Portfolio	21,032.0		20,810.7
Originated Loans Collectively Evaluated for Impairment, Allowance	193.8		193.0
Loans, Portfolio	23,510.8		21,404.9
Total Allowance	203.5	201.9	204.9	202.1	196.9	189.7
Commercial [Member] | Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, Portfolio	2,306.3		432.4
Total Allowance	4.0	3.6	6.1	7.1	7.2	7.9
Retail Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Originated Loans Individually Evaluated for Impairment, Portfolio	94.3		91.8
Originated Loans Individually Evaluated for Impairment, Allowance	2.4		3.2
Originated Loans Collectively Evaluated for Impairment, Portfolio	8,442.4		8,070.4
Originated Loans Collectively Evaluated for Impairment, Allowance	27.3		21.0
Loans, Portfolio	8,873.7		8,340.0
Total Allowance	29.9	29.7	24.4	24.2	23.5	21.3
Retail Loans [Member] | Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, Portfolio	337.0		177.8
Total Allowance	$ 0.2	$ 0.1	$ 0.2	$ 0.2	$ 0.2	$ 0.2

XML

Loans - Summary of Allowance for Loan Losses by Loan Portfolio Segment and Impairment Methodology (Parenthetical) (Detail) - USD ($)	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	$ 32,384,500,000		$ 29,744,900,000
Allowance for loan losses	233,400,000	$ 231,600,000	229,300,000	$ 226,300,000	$ 220,400,000	$ 211,000,000
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	23,510,800,000		21,404,900,000
Allowance for loan losses	203,500,000	201,900,000	204,900,000	202,100,000	196,900,000	189,700,000
Commercial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	406,500,000
Retail Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	8,873,700,000		8,340,000,000
Allowance for loan losses	29,900,000	29,700,000	24,400,000	24,200,000	23,500,000	21,300,000
Retail Loans [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	134,700,000
Acquired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	2,643,300,000		610,200,000
Allowance for loan losses	4,200,000		6,300,000
Acquired Loans [Member] | Commercial and Retail PCI Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	3,800,000
Acquired Loans [Member] | Purchased Performing Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans			0
Allowance for loan losses	400,000
Acquired Loans [Member] | Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	2,306,300,000		432,400,000
Allowance for loan losses	4,000,000	3,600,000	6,100,000	7,100,000	7,200,000	7,900,000
Acquired Loans [Member] | Retail Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	337,000,000		177,800,000
Allowance for loan losses	$ 200,000	$ 100,000	$ 200,000	$ 200,000	$ 200,000	$ 200,000

XML

Loans - Summarized Recorded Investments, by Class of Loan, in Originated Non-Performing Loans (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	$ 174.3	$ 148.0
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	125.7	103.2
Retail Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	48.6	44.8
Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	36.7	22.3
Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	34.9	41.5
Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	54.1	39.4
Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	33.8	27.4
Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	$ 14.8	$ 17.4

XML

Loans - Summarized Recorded Investments, by Class of Loan, in Originated Non-Performing Loans (Parenthetical) (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Government guarantees	$ 4.0	$ 13.1
Recorded investments, non-performing loans	174.3	148.0
Foreclosure [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investments, non-performing loans	$ 17.8	$ 9.8
Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Guarantee rate	5.00%
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Guarantee rate	95.00%

XML

Loans - Summary of Recorded Investments in TDRs by Class of Loan (Detail) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) Contracts	Sep. 30, 2016 USD ($) Contracts	Sep. 30, 2017 USD ($) Contracts	Sep. 30, 2016 USD ($) Contracts
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	59	66	200	194
Pre-Modification Outstanding Recorded Investment	$ 25.1	$ 41.1	$ 85.3	$ 87.4
Post-Modification Outstanding Recorded Investment	$ 25.1	$ 41.1	$ 85.3	$ 87.4
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	23	40	90	97
Pre-Modification Outstanding Recorded Investment	$ 19.8	$ 37.0	$ 70.0	$ 70.5
Post-Modification Outstanding Recorded Investment	$ 19.8	$ 37.0	$ 70.0	$ 70.5
Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	36	26	110	97
Pre-Modification Outstanding Recorded Investment	$ 5.3	$ 4.1	$ 15.3	$ 16.9
Post-Modification Outstanding Recorded Investment	$ 5.3	$ 4.1	$ 15.3	$ 16.9
Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	1	7	8	12
Pre-Modification Outstanding Recorded Investment	$ 0.1	$ 22.1	$ 5.3	$ 25.9
Post-Modification Outstanding Recorded Investment	$ 0.1	$ 22.1	$ 5.3	$ 25.9
Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	9	11	28	36
Pre-Modification Outstanding Recorded Investment	$ 11.6	$ 4.5	$ 39.6	$ 22.9
Post-Modification Outstanding Recorded Investment	$ 11.6	$ 4.5	$ 39.6	$ 22.9
Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	13	22	54	49
Pre-Modification Outstanding Recorded Investment	$ 8.1	$ 10.4	$ 25.1	$ 21.7
Post-Modification Outstanding Recorded Investment	$ 8.1	$ 10.4	$ 25.1	$ 21.7
Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	17	9	45	47
Pre-Modification Outstanding Recorded Investment	$ 3.8	$ 2.9	$ 10.8	$ 13.1
Post-Modification Outstanding Recorded Investment	$ 3.8	$ 2.9	$ 10.8	$ 13.1
Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	19	17	65	50
Pre-Modification Outstanding Recorded Investment	$ 1.5	$ 1.2	$ 4.5	$ 3.8
Post-Modification Outstanding Recorded Investment	$ 1.5	$ 1.2	$ 4.5	$ 3.8

XML

Loans - Summary of Recorded Investments in TDRs by Class of Loan (Parenthetical) (Detail) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) Contracts	Sep. 30, 2016 USD ($) Contracts	Sep. 30, 2017 USD ($) Contracts	Sep. 30, 2016 USD ($) Contracts
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	59	66	200	194
Recorded investment | $	$ 25.1	$ 41.1	$ 85.3	$ 87.4
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	23	40	90	97
Recorded investment | $	$ 19.8	$ 37.0	$ 70.0	$ 70.5
Commercial [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	1	7	8	12
Recorded investment | $	$ 0.1	$ 22.1	$ 5.3	$ 25.9
Commercial [Member] | Commercial Real Estate Loan [Member] | Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	1	5	5	8
Recorded investment | $	$ 0.1	$ 3.3	$ 1.4	$ 6.2
Commercial [Member] | Commercial Real Estate Loan [Member] | Payment Deferral [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts		1	2	2
Recorded investment | $		$ 1.7	$ 2.2	$ 2.6
Commercial [Member] | Commercial Real Estate Loan [Member] | Combination of Concessions [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts		1		2
Recorded investment | $		$ 17.1		$ 17.1
Commercial [Member] | Commercial Real Estate Loan [Member] | Temporary Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts			1
Recorded investment | $			$ 1.7
Commercial [Member] | Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	9	11	28	36
Recorded investment | $	$ 11.6	$ 4.5	$ 39.6	$ 22.9
Commercial [Member] | Commercial and Industrial [Member] | Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	9	9	25	23
Recorded investment | $	$ 11.6	$ 4.1	$ 29.9	$ 12.3
Commercial [Member] | Commercial and Industrial [Member] | Payment Deferral [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts		2	2	9
Recorded investment | $		$ 0.4	$ 9.4	$ 9.8
Commercial [Member] | Commercial and Industrial [Member] | Combination of Concessions [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts			1	4
Recorded investment | $			$ 0.3	$ 0.8
Commercial [Member] | Equipment Financing [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	13	22	54	49
Recorded investment | $	$ 8.1	$ 10.4	$ 25.1	$ 21.7
Commercial [Member] | Equipment Financing [Member] | Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts		6		17
Recorded investment | $		$ 4.3		$ 6.3
Commercial [Member] | Equipment Financing [Member] | Payment Deferral [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	12	13	28	25
Recorded investment | $	$ 8.0	$ 4.7	$ 17.4	$ 12.5
Commercial [Member] | Equipment Financing [Member] | Combination of Concessions [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	1	3	26	7
Recorded investment | $	$ 0.1	$ 1.4	$ 7.7	$ 2.9
Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	36	26	110	97
Recorded investment | $	$ 5.3	$ 4.1	$ 15.3	$ 16.9
Retail Loans [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	17	9	45	47
Recorded investment | $	$ 3.8	$ 2.9	$ 10.8	$ 13.1
Retail Loans [Member] | Residential Mortgage Loan [Member] | Payment Deferral [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	5	1	10	11
Recorded investment | $	$ 1.7	$ 0.7	$ 3.4	$ 5.5
Retail Loans [Member] | Residential Mortgage Loan [Member] | Combination of Concessions [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	3	2	7	18
Recorded investment | $	$ 0.4	$ 1.2	$ 3.2	$ 4.4
Retail Loans [Member] | Residential Mortgage Loan [Member] | Bankruptcy [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	9	6	28	18
Recorded investment | $	$ 1.7	$ 1.0	$ 4.2	$ 3.2
Retail Loans [Member] | Home Equity Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	19	17	65	50
Recorded investment | $	$ 1.5	$ 1.2	$ 4.5	$ 3.8
Retail Loans [Member] | Home Equity Loan [Member] | Payment Deferral [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	4	1	10	2
Recorded investment | $	$ 0.3	$ 0.2	$ 0.8	$ 0.3
Retail Loans [Member] | Home Equity Loan [Member] | Combination of Concessions [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	5	5	14	17
Recorded investment | $	$ 0.2	$ 0.5	$ 1.1	$ 1.4
Retail Loans [Member] | Home Equity Loan [Member] | Bankruptcy [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	10	11	41	31
Recorded investment | $	$ 1.0	$ 0.5	$ 2.6	$ 2.1

XML

Loans - Summary of Recorded Investments in TDRs by Class of Loan, Subsequently Defaulted (Detail) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) Contracts	Sep. 30, 2016 USD ($) Contracts	Sep. 30, 2017 USD ($) Contracts	Sep. 30, 2016 USD ($) Contracts
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	16	17	39	44
Recorded Investment | $	$ 6.0	$ 2.8	$ 12.3	$ 9.8
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	9	14	19	27
Recorded Investment | $	$ 4.3	$ 2.2	$ 8.3	$ 7.4
Commercial [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts				2
Recorded Investment | $				$ 0.9
Commercial [Member] | Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	1		4	5
Recorded Investment | $	$ 0.1		$ 1.5	$ 0.6
Commercial [Member] | Equipment Financing [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	8	14	15	20
Recorded Investment | $	$ 4.2	$ 2.2	$ 6.8	$ 5.9
Retail Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	7	3	20	17
Recorded Investment | $	$ 1.7	$ 0.6	$ 4.0	$ 2.4
Retail Loans [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	2	3	9	10
Recorded Investment | $	$ 0.9	$ 0.6	$ 2.7	$ 1.9
Retail Loans [Member] | Home Equity Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contracts	5		11	7
Recorded Investment | $	$ 0.8		$ 1.3	$ 0.5

XML

Loans - Summary of Individually-Evaluated Impaired Loans by Class of Loan (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	$ 223.1	$ 216.3
With no related allowance for loan losses, Recorded Investment	201.9	197.7
With a related allowance for loan losses, Unpaid Principal Balance	67.1	58.3
With a related allowance for loan losses, Recorded Investment	64.9	55.9
Unpaid Principal Balance	290.2	274.6
Recorded Investment	266.8	253.6
Related Allowance for Loan Losses	8.1	9.0
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	185.6	173.4
Recorded Investment	172.5	161.8
Related Allowance for Loan Losses	5.7	5.8
Commercial [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	50.7	41.4
With no related allowance for loan losses, Recorded Investment	46.1	40.0
With a related allowance for loan losses, Unpaid Principal Balance	13.5	12.2
With a related allowance for loan losses, Recorded Investment	12.8	11.4
Unpaid Principal Balance	64.2	53.6
Recorded Investment	58.9	51.4
Related Allowance for Loan Losses	1.2	0.6
Commercial [Member] | Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	39.3	50.7
With no related allowance for loan losses, Recorded Investment	36.7	45.7
With a related allowance for loan losses, Unpaid Principal Balance	25.2	25.9
With a related allowance for loan losses, Recorded Investment	24.6	25.0
Unpaid Principal Balance	64.5	76.6
Recorded Investment	61.3	70.7
Related Allowance for Loan Losses	3.0	4.7
Commercial [Member] | Equipment Financing [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	42.8	38.2
With no related allowance for loan losses, Recorded Investment	39.1	35.3
With a related allowance for loan losses, Unpaid Principal Balance	14.1	5.0
With a related allowance for loan losses, Recorded Investment	13.2	4.4
Unpaid Principal Balance	56.9	43.2
Recorded Investment	52.3	39.7
Related Allowance for Loan Losses	1.5	0.5
Retail Loans [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance for loan losses, Recorded Investment	14.3
Unpaid Principal Balance	104.6	101.2
Recorded Investment	94.3	91.8
Related Allowance for Loan Losses	2.4	3.2
Retail Loans [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	66.8	63.6
With no related allowance for loan losses, Recorded Investment	60.0	58.0
With a related allowance for loan losses, Unpaid Principal Balance	12.4	13.1
With a related allowance for loan losses, Recorded Investment	12.4	13.1
Unpaid Principal Balance	79.2	76.7
Recorded Investment	72.4	71.1
Related Allowance for Loan Losses	1.7	2.3
Retail Loans [Member] | Home Equity Loan [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance for loan losses, Unpaid Principal Balance	23.5	22.4
With no related allowance for loan losses, Recorded Investment	20.0	18.7
With a related allowance for loan losses, Unpaid Principal Balance	1.9	2.1
With a related allowance for loan losses, Recorded Investment	1.9	2.0
Unpaid Principal Balance	25.4	24.5
Recorded Investment	21.9	20.7
Related Allowance for Loan Losses	$ 0.7	$ 0.9

XML

Loans - Schedule of Impaired Financing Receivable (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 262.2	$ 245.8	$ 259.0	$ 250.4
Interest Income Recognized	1.7	1.3	4.5	3.9
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	168.0	152.8	166.0	156.4
Interest Income Recognized	1.2	0.8	2.9	2.5
Commercial [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	61.8	54.1	56.9	58.6
Interest Income Recognized	0.3	0.4	0.9	1.1
Commercial [Member] | Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	59.7	60.5	66.1	61.9
Interest Income Recognized	0.7	0.3	1.6	1.2
Commercial [Member] | Equipment Financing [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	46.5	38.2	43.0	35.9
Interest Income Recognized	0.2	0.1	0.4	0.2
Retail Loans [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	94.2	93.0	93.0	94.0
Interest Income Recognized	0.5	0.5	1.6	1.4
Retail Loans [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	72.4	71.7	71.9	72.1
Interest Income Recognized	0.4	0.4	1.3	1.2
Retail Loans [Member] | Home Equity Loan [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	21.8	21.3	21.1	21.9
Interest Income Recognized	$ 0.1	$ 0.1	$ 0.3	$ 0.2

XML

Loans - Summary of Aging Information by Class of Loan (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	$ 32,384.5	$ 29,744.9
Originated [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	29,514.9	28,938.1
Total Past Due	226.3	196.6
Total loans	29,741.2	29,134.7
Originated [Member] | 30-89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	158.4	116.8
Originated [Member] | 90 Days or More [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	67.9	79.8
Retail Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	8,873.7	8,340.0
Retail Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	51.2	50.7
Retail Loans [Member] | Home Equity Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	2,041.5	2,072.6
Retail Loans [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	6,781.0	6,216.7
Retail Loans [Member] | Originated [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	8,470.4	8,107.5
Total Past Due	66.3	54.7
Total loans	8,536.7	8,162.2
Retail Loans [Member] | Originated [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	46.5	49.7
Total Past Due	0.8	0.3
Total loans	47.3	50.0
Retail Loans [Member] | Originated [Member] | Home Equity Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,968.5	2,030.3
Total Past Due	13.3	14.6
Total loans	1,981.8	2,044.9
Retail Loans [Member] | Originated [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	6,455.4	6,027.5
Total Past Due	52.2	39.8
Total loans	6,507.6	6,067.3
Retail Loans [Member] | Originated [Member] | 30-89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	39.6	27.5
Retail Loans [Member] | Originated [Member] | 30-89 Days [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0.8	0.3
Retail Loans [Member] | Originated [Member] | 30-89 Days [Member] | Home Equity Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	7.0	5.2
Retail Loans [Member] | Originated [Member] | 30-89 Days [Member] | Residential Mortgage Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	31.8	22.0
Retail Loans [Member] | Originated [Member] | 90 Days or More [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	26.7	27.2
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	6.3	9.4
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	20.4	17.8
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	23,510.8	21,404.9
Commercial [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	11,180.5	10,247.3
Commercial [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	8,624.7	8,125.1
Commercial [Member] | Equipment Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	3,705.6	3,032.5
Commercial [Member] | Originated [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	21,044.5	20,830.6
Total Past Due	160.0	141.9
Total loans	21,204.5	20,972.5
Commercial [Member] | Originated [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	10,158.6	9,989.9
Total Past Due	35.5	22.7
Total loans	10,194.1	10,012.6
Commercial [Member] | Originated [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	7,943.2	7,899.2
Total Past Due	28.1	39.8
Total loans	7,971.3	7,939.0
Commercial [Member] | Originated [Member] | Equipment Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,942.7	2,941.5
Total Past Due	96.4	79.4
Total loans	3,039.1	3,020.9
Commercial [Member] | Originated [Member] | 30-89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	118.8	89.3
Commercial [Member] | Originated [Member] | 30-89 Days [Member] | Commercial Real Estate Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	20.3	10.9
Commercial [Member] | Originated [Member] | 30-89 Days [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	10.1	10.0
Commercial [Member] | Originated [Member] | 30-89 Days [Member] | Equipment Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	88.4	68.4
Commercial [Member] | Originated [Member] | 90 Days or More [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	41.2	52.6
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	15.2	11.8
Commercial [Member] | Originated [Member] | 90 Days or More [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	18.0	29.8
Commercial [Member] | Originated [Member] | 90 Days or More [Member] | Equipment Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 8.0	$ 11.0

XML

Loans - Summary of Credit Quality Indicators by Class of Loan (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	$ 32,384.5	$ 29,744.9
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	23,510.8	21,404.9
Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	8,873.7	8,340.0
Originated Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	21,204.5	20,972.5
Originated Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	20,134.0	20,015.7
Originated Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	353.7	328.0
Originated Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	715.1	624.6
Originated Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	1.7	4.2
Originated Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	8,536.7	8,162.2
Originated Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	4,215.2	3,998.4
Originated Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	3,376.1	3,210.0
Originated Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	945.4	953.8
Acquired Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,643.3	610.2
Acquired Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,306.3	432.4
Acquired Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,169.6	339.4
Acquired Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	48.6	25.7
Acquired Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	87.4	66.6
Acquired Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	0.7	0.7
Acquired Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	337.0	177.8
Acquired Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	154.9	75.7
Acquired Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	60.2	27.5
Acquired Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	121.9	74.6
Commercial Real Estate Loan [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	11,180.5	10,247.3
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	10,194.1	10,012.6
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	9,926.2	9,817.2
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	129.1	107.3
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	137.9	87.1
Commercial Real Estate Loan [Member] | Originated Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	0.9	1.0
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	986.4	234.7
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	940.9	182.9
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	6.2	13.5
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	38.6	37.6
Commercial Real Estate Loan [Member] | Acquired Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	0.7	0.7
Commercial and Industrial [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	8,624.7	8,125.1
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	7,971.3	7,939.0
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	7,588.1	7,580.6
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	122.8	121.9
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	259.6	233.3
Commercial and Industrial [Member] | Originated Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	0.8	3.2
Commercial and Industrial [Member] | Acquired Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	653.4	186.1
Commercial and Industrial [Member] | Acquired Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	562.2	155.5
Commercial and Industrial [Member] | Acquired Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	42.4	3.6
Commercial and Industrial [Member] | Acquired Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	48.8	27.0
Equipment Financing [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	3,705.6	3,032.5
Equipment Financing [Member] | Originated Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	3,039.1	3,020.9
Equipment Financing [Member] | Originated Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,619.7	2,617.9
Equipment Financing [Member] | Originated Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	101.8	98.8
Equipment Financing [Member] | Originated Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	317.6	304.2
Equipment Financing [Member] | Acquired Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	666.5	11.6
Equipment Financing [Member] | Acquired Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	666.5	1.0
Equipment Financing [Member] | Acquired Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable		8.6
Equipment Financing [Member] | Acquired Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable		2.0
Residential Mortgage Loan [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	6,781.0	6,216.7
Residential Mortgage Loan [Member] | Originated Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	6,507.6	6,067.3
Residential Mortgage Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	3,259.8	3,016.4
Residential Mortgage Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,715.9	2,538.9
Residential Mortgage Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	531.9	512.0
Residential Mortgage Loan [Member] | Acquired Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	273.4	149.4
Residential Mortgage Loan [Member] | Acquired Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	154.9	75.7
Residential Mortgage Loan [Member] | Acquired Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	60.2	27.5
Residential Mortgage Loan [Member] | Acquired Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	58.3	46.2
Home Equity Loan [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	2,041.5	2,072.6
Home Equity Loan [Member] | Originated Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	1,981.8	2,044.9
Home Equity Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	928.2	950.9
Home Equity Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	652.2	663.9
Home Equity Loan [Member] | Originated Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	401.4	430.1
Home Equity Loan [Member] | Acquired Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	59.7	27.7
Home Equity Loan [Member] | Acquired Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	59.7	27.7
Other Consumer [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	51.2	50.7
Other Consumer [Member] | Originated Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	47.3	50.0
Other Consumer [Member] | Originated Loans [Member] | Retail Loans [Member] | Low Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	27.2	31.1
Other Consumer [Member] | Originated Loans [Member] | Retail Loans [Member] | Moderate Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	8.0	7.2
Other Consumer [Member] | Originated Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	12.1	11.7
Other Consumer [Member] | Acquired Loans [Member] | Retail Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	3.9	0.7
Other Consumer [Member] | Acquired Loans [Member] | Retail Loans [Member] | High Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable	$ 3.9	$ 0.7

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Loans - Summarized Activity in Accretable Yield for Acquired Loan Portfolio (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Receivables [Abstract]
Balance at beginning of period	$ 233.4	$ 270.3	$ 255.4	$ 296.0
Acquisitions			13.1
Accretion	(7.1)	(9.0)	(22.5)	(31.1)
Reclassification from nonaccretable difference for loans with improved cash flows	0.0	0.0	0.0	0.0
Other changes in expected cash flows		2.4	(19.7)	(1.2)
Balance at end of period	$ 226.3	$ 263.7	$ 226.3	$ 263.7

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Stockholders' Equity - Additional Information (Detail) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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	433,600,000	405,000,000
Preferred stock, shares outstanding	10,000,000	10,000,000
Number of common stock purchased	89,000,000	89,100,000
Repurchases Authorized by Board of Directors [Member]
Schedule Of Stockholders Equity [Line Items]
Number of common stock purchased	86,400,000	86,400,000
2007 Recognition and Retention Plan [Member]
Schedule Of Stockholders Equity [Line Items]
Number of common stock purchased	2,600,000	2,700,000
2014 Long-Term Incentive Plan [Member] | 2007 Recognition and Retention Plan [Member]
Schedule Of Stockholders Equity [Line Items]
Additional awards under RRP	0
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	433,600,000	405,000,000
Preferred stock, shares outstanding	10,000,000	10,000,000

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Stockholders' Equity - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ 5,141.9	$ 4,731.6
Amounts reclassified from AOCL	$ 1.3	$ 1.4	13.9	4.5
Total other comprehensive income , net of tax			25.3	56.8
Ending Balance	5,746.1	4,862.3	5,746.1	4,862.3
Pension and Other Postretirement Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(145.6)	(140.0)
Amounts reclassified from AOCL			2.8	2.8
Total other comprehensive income , net of tax			2.8	2.8
Ending Balance	(142.8)	(137.2)	(142.8)	(137.2)
Net Unrealized Gains (Losses) on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(32.3)	(17.7)
Other comprehensive income (loss) before reclassifications			11.1	52.4
Amounts reclassified from AOCL			9.9	(0.1)
Total other comprehensive income , net of tax			21.0	52.3
Ending Balance	(11.3)	34.6	(11.3)	34.6
Net Unrealized Gain (Losses) On Securities Transferred To Held To Maturity [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(17.4)	(19.5)
Amounts reclassified from AOCL			1.6	1.5
Total other comprehensive income , net of tax			1.6	1.5
Ending Balance	(15.8)	(18.0)	(15.8)	(18.0)
Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			0.3	0.0
Other comprehensive income (loss) before reclassifications			0.3	(0.1)
Amounts reclassified from AOCL			(0.4)	0.3
Total other comprehensive income , net of tax			(0.1)	0.2
Ending Balance	0.2	0.2	0.2	0.2
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(195.0)	(177.2)
Other comprehensive income (loss) before reclassifications			11.4	52.3
Amounts reclassified from AOCL			13.9	4.5
Total other comprehensive income , net of tax			25.3	56.8
Ending Balance	$ (169.7)	$ (120.4)	$ (169.7)	$ (120.4)

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Stockholders' Equity - Summary of Amounts Reclassified from AOCL (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income tax expense	$ (129.8)	$ (106.3)	$ (334.7)	$ (303.4)
Income tax expense	39.0	32.6	103.8	98.3
Net income	(90.8)	(73.7)	(230.9)	(205.1)
Interest expense - notes and debentures	7.5	7.9	22.3	23.4
Total reclassifications for the period	(1.3)	(1.4)	(13.9)	(4.5)
Pension and Other Postretirement Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net actuarial loss	(1.7)	(1.7)	(5.1)	(4.8)
Prior service credit	0.2	0.2	0.6	0.6
Income before income tax expense	(1.5)	(1.5)	(4.5)	(4.2)
Income tax expense	0.6	0.6	1.7	1.4
Net income	(0.9)	(0.9)	(2.8)	(2.8)
Total reclassifications for the period			(2.8)	(2.8)
Net Unrealized Gains (Losses) on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income tax expense			(15.6)	0.1
Income tax expense			5.7
Net income			(9.9)	0.1
Total reclassifications for the period			(9.9)	0.1
Net Unrealized Gain (Losses) On Securities Transferred To Held To Maturity [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income tax expense	(0.9)	(0.9)	(2.6)	(2.4)
Income tax expense	0.3	0.4	1.0	0.9
Net income	(0.6)	(0.5)	(1.6)	(1.5)
Total reclassifications for the period			(1.6)	(1.5)
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	0.4		0.7	(0.5)
Income tax expense	(0.2)		(0.3)	0.2
Net income	0.2		0.4	(0.3)
Total reclassifications for the period			0.4	(0.3)
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	0.1
Net Unrealized Gains (Losses) on Derivatives Accounted for as Cash Flow Hedges [Member] | Interest Rate Swaps/Caps [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense - notes and debentures	$ (0.3)	$ 0.1	$ (0.6)	$ 0.6

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Earnings Per Common Share - Basic and Diluted Earnings Per Common Share, Reflecting Application of Two-Class Method (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income available to common shareholders	$ 87.3	$ 73.7	$ 220.4	$ 205.1
Dividends paid on and undistributed earnings allocated to participating securities	(0.1)	(0.2)	(0.4)	(0.6)
Earnings attributable to common shareholders	$ 87.2	$ 73.5	$ 220.0	$ 204.5
Weighted average common shares outstanding for basic EPS	336.9	302.9	327.6	302.4
Effect of dilutive equity-based awards	1.9	0.4	2.0	0.4
Weighted average common and common-equivalent shares for diluted EPS	338.8	303.3	329.6	302.8
Basic EPS	$ 0.26	$ 0.24	$ 0.67	$ 0.68
Diluted EPS	$ 0.26	$ 0.24	$ 0.67	$ 0.68

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Earnings Per Common Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Anti-dilutive equity-based awards excluded from calculation of diluted EPS	10.2	18.2	10.1	18.2

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Goodwill and Other Acquisition-Related Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Goodwill [Line Items]
Beginning balance	$ 1,992.7	$ 1,958.7
Adjustments		(3.1)
Ending balance	2,411.4	1,957.0
Suffolk Bancorp [Member]
Goodwill [Line Items]
Acquisition	270.3
LEAF Commercial Capital, Inc. [Member]
Goodwill [Line Items]
Acquisition	148.4
Eagle Insurance Group, LLC [Member]
Goodwill [Line Items]
Acquisition		1.4
Commercial Banking Loan [Member]
Goodwill [Line Items]
Beginning balance	1,222.1	1,222.8
Adjustments		(0.7)
Ending balance	1,600.3	1,222.1
Commercial Banking Loan [Member] | Suffolk Bancorp [Member]
Goodwill [Line Items]
Acquisition	229.8
Commercial Banking Loan [Member] | LEAF Commercial Capital, Inc. [Member]
Goodwill [Line Items]
Acquisition	148.4
Retail Banking [Member]
Goodwill [Line Items]
Beginning balance	679.6	681.9
Adjustments		(2.3)
Ending balance	720.1	679.6
Retail Banking [Member] | Suffolk Bancorp [Member]
Goodwill [Line Items]
Acquisition	40.5
Wealth Management [Member]
Goodwill [Line Items]
Beginning balance	91.0	54.0
Adjustments		(0.1)
Ending balance	$ 91.0	55.3
Wealth Management [Member] | Eagle Insurance Group, LLC [Member]
Goodwill [Line Items]
Acquisition		$ 1.4

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Goodwill and Other Acquisition-Related Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Goodwill And Other Intangible Assets [Line Items]
Other acquisition-related intangible assets	$ 156,500,000		$ 156,500,000		$ 149,400,000
Amortization of other acquisition-related intangible assets	7,900,000	$ 5,800,000	22,100,000	$ 17,400,000
Amortization expense attributable to other acquisition-related intangible assets, 2017	30,000,000		30,000,000
Amortization expense attributable to other acquisition-related intangible assets, 2018	19,900,000		19,900,000
Amortization expense attributable to other acquisition-related intangible assets, 2019	18,400,000		18,400,000
Amortization expense attributable to other acquisition-related intangible assets, 2020	16,800,000		16,800,000
Amortization expense attributable to other acquisition-related intangible assets, 2021	15,000,000		15,000,000
Amortization expense attributable to other acquisition-related intangible assets, 2022	13,500,000		13,500,000
Impairment losses relating to goodwill or other acquisition-related intangible assets			0	$ 0
Mutual Fund Management Contracts [Member]
Goodwill And Other Intangible Assets [Line Items]
Mutual fund management contracts (not amortized)	16,500,000		16,500,000
Trade Name [Member]
Goodwill And Other Intangible Assets [Line Items]
Other acquisition-related intangible assets	68,100,000		68,100,000
Customer Relationships [Member]
Goodwill And Other Intangible Assets [Line Items]
Other acquisition-related intangible assets	14,900,000		14,900,000
Core Deposit Intangibles [Member]
Goodwill And Other Intangible Assets [Line Items]
Other acquisition-related intangible assets	27,900,000		27,900,000
Insurance Relationships [Member]
Goodwill And Other Intangible Assets [Line Items]
Other acquisition-related intangible assets	5,400,000		5,400,000
Client Relationship [Member]
Goodwill And Other Intangible Assets [Line Items]
Other acquisition-related intangible assets	22,500,000		22,500,000
Favorable Lease Agreement [Member]
Goodwill And Other Intangible Assets [Line Items]
Other acquisition-related intangible assets	600,000		600,000
Noncompete Agreements [Member]
Goodwill And Other Intangible Assets [Line Items]
Other acquisition-related intangible assets	$ 600,000		$ 600,000

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Employee Benefit Plans - People's United Employee Pension and Other Postretirement Plans - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017
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
People's Qualified Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of covered employee's eligible compensation	3.00%

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Employee Benefit Plans - Components of Net Periodic Benefit (Income) Expense and Other Amounts (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0.1		$ 0.2	$ 0.2
Interest cost	0.1	$ 0.2	0.4	0.5
Recognized net actuarial loss	0.1	0.1	0.2	0.2
Net periodic benefit (income) expense	0.3	0.3	0.8	0.9
Net actuarial loss			(0.2)	(0.2)
Total pre-tax changes recognized in other comprehensive income			(0.2)	(0.2)
Total recognized in net periodic benefit (income) expense and other comprehensive income			0.6	0.7
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	4.9	4.7	14.3	14.1
Expected return on plan assets	(9.6)	(8.7)	(28.3)	(25.9)
Recognized net actuarial loss	1.6	1.6	4.9	4.6
Recognized prior service credit	(0.2)	(0.2)	(0.6)	(0.6)
Settlements	1.1	0.3	2.6	0.9
Net periodic benefit (income) expense	$ (2.2)	$ (2.3)	(7.1)	(6.9)
Net actuarial loss			(4.9)	(4.6)
Prior service credit			0.6	0.6
Total pre-tax changes recognized in other comprehensive income			(4.3)	(4.0)
Total recognized in net periodic benefit (income) expense and other comprehensive income			$ (11.4)	$ (10.9)

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Employee Benefit Plans - Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) $ in Millions		9 Months Ended
	Apr. 30, 2007	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
ESOP, shares to be purchased	10,453,575
ESOP loan	$ 216.8	$ 184.9
Loan repayments expected annual through 2036		18.8
Cash dividends paid on unallocated ESOP shares		$ 3.6
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		3,745,864
Unallocated common stock of Employee Stock Ownership Plan, shares		6,707,711		7,000,000
Fair value of deferred ESOP shares		$ 121.7
ESOP compensation expense		$ 4.8	$ 4.0

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Fair Value Measurements - Additional Information (Detail) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value transfers between level 1 and level 2	$ 0	$ 0
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	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	$ 8.3	$ 6.8
Securities available for sale, at fair value	3,197.5	4,409.9
Other assets	963.0	967.2
Fair Values, Assets	102.7	174.0
Fair Values, Liabilities	61.4	121.7
Fair value of total assets measured at fair value on a recurring basis	3,348.8	4,630.3
Fair value of total liabilities measured at fair value on a recurring basis	61.4	121.7
Exchange Traded Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	35.0	32.6
Fixed Income Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	1.7	4.3
Equity Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	3.6	2.7
US Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	8.3	6.8
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	741.9	859.7
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	2,446.6	3,550.0
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	9.0	0.2
Interest Rate Swaps/Caps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	101.9	173.1
Fair Values, Liabilities	60.5	121.0
Foreign Exchange Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	0.2	0.6
Fair Values, Liabilities	0.2	0.3
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	0.3
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	0.7	0.4
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	797.8	901.8
Level 1 [Member] | Exchange Traded Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	35.0	32.6
Level 1 [Member] | Equity Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	3.6	2.7
Level 1 [Member] | US Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	8.3	6.8
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	741.9	859.7
Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	9.0
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	2,551.0	3,728.5
Fair value of total liabilities measured at fair value on a recurring basis	61.4	121.7
Level 2 [Member] | Fixed Income Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	1.7	4.3
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	2,446.6	3,550.0
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
Level 2 [Member] | Interest Rate Swaps/Caps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	101.9	173.1
Fair Values, Liabilities	60.5	121.0
Level 2 [Member] | Foreign Exchange Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Values, Assets	0.2	0.6
Fair Values, Liabilities	0.2	0.3
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	0.3
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	$ 0.7	$ 0.4

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Risk Participation Agreements [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value of Derivatives, Net	$ 100,000	$ 100,000

XML

Fair Value Measurements - Assets Measured at Fair Value on Non-Recurring Basis (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	$ 15.0	$ 39.3
Impaired loans	64.9	55.9
REO and repossessed assets	16.4	19.3
Total assets measured at fair value on non-recurring basis	96.3	114.5
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	15.0	39.3
Total assets measured at fair value on non-recurring basis	15.0	39.3
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	64.9	55.9
REO and repossessed assets	16.4	19.3
Total assets measured at fair value on non-recurring basis	$ 81.3	$ 75.2

XML

Fair Value Measurements - Assets Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 64,900,000		$ 64,900,000		$ 55,900,000
Charge-offs to the allowance for loan losses related to loans	7,000,000	$ 8,400,000	18,500,000	$ 28,900,000
Repossessed assets	5,400,000		5,400,000		7,200,000
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			4,100,000	3,500,000
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			2,200,000	3,300,000
Nonoperating Income (Expense) [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			(300,000)	2,900,000
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	4,700,000		4,700,000		8,100,000
Commercial Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	50,600,000		50,600,000
Commercial Real Estate Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate owned	6,300,000		6,300,000		4,000,000
Retail Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	14,300,000		14,300,000
Charge-offs to the allowance for loan losses related to loans	1,400,000	$ 1,300,000	8,900,000	$ 7,000,000
Retail Loans [Member] | Residential Mortgage Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 12,400,000		$ 12,400,000		$ 13,100,000

XML

Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	$ 414.1	$ 432.4
Short-term investments	302.5	181.7
Securities held to maturity	3,387.6	2,005.4
FHLB and FRB stock	320.9	315.8
Time deposits	5,235.8	4,542.2
FHLB advances	3,074.1	3,061.1
Federal funds purchased	543.0	617.0
Customer repurchase agreements	295.8	343.3
Other borrowings	231.1	35.4
Notes and debentures	906.2	1,030.1
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	414.1	432.4
Short-term investments	302.5	181.7
Securities held to maturity	3,387.6	2,005.4
FHLB and FRB stock	320.9	315.8
Total loans, net	32,086.2	29,459.7
Time deposits	5,235.8	4,542.2
Other deposits	27,311.5	25,318.6
FHLB advances	3,074.1	3,061.1
Federal funds purchased	543.0	617.0
Customer repurchase agreements	295.8	343.3
Other borrowings	231.1	35.4
Notes and debentures	906.2	1,030.1
Estimated Fair Value Measurements [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	414.1	432.4
Short-term investments	302.5	181.7
Securities held to maturity	3,435.6	2,012.7
FHLB and FRB stock	320.9	315.8
Total loans, net	31,947.5	29,266.5
Time deposits	5,232.4	4,539.7
Other deposits	27,311.5	25,318.6
FHLB advances	3,076.0	3,064.4
Federal funds purchased	543.0	617.0
Customer repurchase agreements	295.8	343.3
Other borrowings	230.9	35.4
Notes and debentures	902.6	1,000.0
Estimated Fair Value Measurements [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	414.1	432.4
Estimated Fair Value Measurements [Member] | Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	302.5	181.7
Securities held to maturity	3,434.1	2,011.2
FHLB and FRB stock	320.9	315.8
Total loans, net	6,583.6	6,028.4
Time deposits	5,232.4	4,539.7
Other deposits	27,311.5	25,318.6
FHLB advances	3,076.0	3,064.4
Federal funds purchased	543.0	617.0
Customer repurchase agreements	295.8	343.3
Other borrowings	230.9	35.4
Notes and debentures	902.6	1,000.0
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	$ 25,363.9	$ 23,238.1

XML

Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Impaired loans	$ 64.9	$ 55.9

XML

Derivative Financial Instruments and Hedging Activities - Additional Information (Detail)		9 Months Ended	12 Months Ended
	Feb. 14, 2017 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Derivative [Line Items]
Aggregate fair value of derivative instruments		$ 0
Subordinated notes fixed interest rate		5.80%
Repayment of subordinated notes		$ 125,000,000
Unrealized gain on derivatives			$ (200,000)
5.80% Fixed Rate/Floating Rate Subordinated Notes Due 2017 [Member] | People's United Financial, Inc. [Member]
Derivative [Line Items]
Repayment of subordinated notes	$ 125,000,000
Interest Rate Swaps/Caps [Member] | Fair Value [Member]
Derivative [Line Items]
LIBOR basis points		Three-month LIBOR
Notional amount of derivatives		$ 375,000,000
Subordinated notes		$ 400,000,000
Basis points		1.265%
Interest Rate Swaps/Caps [Member] | Cash Flow [Member]
Derivative [Line Items]
Subordinated notes		$ 125,000,000
Interest Rate Swaps/Caps [Member] | Cash Flow [Member] | Loans [Member]
Derivative [Line Items]
LIBOR basis points		One-month LIBOR
Notional amount of derivatives		$ 210,000,000
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
Treasury Forward Interest Rate Locks ("T-Locks") [Member] | Subordinated Notes [Member]
Derivative [Line Items]
Senior notes issuance		$ 500,000,000
Interest Rate Cap [Member] | LEAF Commercial Capital, Inc. [Member]
Derivative [Line Items]
LIBOR basis points		One-month LIBOR
Notional amount of derivatives		$ 150,000,000
Number of interest-rate caps		2
Interest-rate caps maturity date		2017-12

XML

Derivative Financial Instruments and Hedging Activities - Schedule of Notional Amounts and Fair Values of Derivatives Outstanding (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total, Derivatives Not Designated as Hedging Instruments, Fair Values, Liabilities	$ 61,400,000	$ 121,600,000
Forward commitments to sell residential mortgage loans	102,700,000	160,400,000
Total, Derivatives Designated as Hedging Instruments, Fair Values, Assets		13,600,000
Total Derivatives Fair value,Assets	102,700,000	174,000,000
Total, Derivatives Designated as Hedging Instruments, Fair Values, Liabilities		100,000
Fair Values, Liabilities	61,400,000	121,700,000
Forward Commitments to Sell Residential Mortgage Loans [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	26,000,000	48,600,000
Forward commitments to sell residential mortgage loans	600,000	300,000
Total Derivatives Fair value,Assets	600,000	300,000
Interest Rate-Lock Commitments on Residential Mortgage Loans [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	31,700,000	57,000,000
Derivatives Not Designated as Hedging Instruments, Foreign exchange contracts, Fair Values, Liabilities	700,000	400,000
Fair Values, Liabilities	700,000	400,000
Interest Rate Swaps/Caps [Member] | Fair Value [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	375,000,000
Interest Rate Swaps/Caps [Member] | Cash Flow [Member] | Loans [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	210,000,000
Derivative Assets Designated as Hedging Instruments, Fair Values, Assets	0	0
Interest Rate Swaps/Caps [Member] | Commercial Customers [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	6,101,200,000	5,612,200,000
Derivatives Not Designated as Hedging Instruments, Interest rate swaps, Fair Values, Assets	91,500,000	93,900,000
Derivatives Not Designated as Hedging Instruments, Foreign exchange contracts, Fair Values, Liabilities	39,700,000	46,900,000
Interest Rate Swaps/Caps [Member] | Institutional Counterparties [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	5,958,200,000	5,620,200,000
Derivatives Not Designated as Hedging Instruments, Interest rate swaps, Fair Values, Assets	10,400,000	65,600,000
Derivatives Not Designated as Hedging Instruments, Foreign exchange contracts, Fair Values, Liabilities	20,800,000	74,000,000
Interest Rate Swaps/Caps [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		13,600,000
Total, Derivatives Designated as Hedging Instruments, Fair Values, Liabilities	0	0
Interest Rate Swaps/Caps [Member] | Subordinated Notes [Member] | Cash Flow [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts		125,000,000
Total, Derivatives Designated as Hedging Instruments, Fair Values, Liabilities		100,000
Derivative Assets Designated as Hedging Instruments, Fair Values, Assets	0	0
Risk Participation Agreements [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	383,400,000	251,900,000
Foreign Exchange Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amounts	42,600,000	101,200,000
Derivatives Not Designated as Hedging Instruments, Foreign exchange contracts, Fair Values, Assets	200,000	600,000
Total Derivatives Fair value,Assets	200,000	600,000
Derivatives Not Designated as Hedging Instruments, Interest rate swaps, Fair Values, Liabilities	200,000	300,000
Fair Values, Liabilities	$ 200,000	$ 300,000

XML

Derivative Financial Instruments and Hedging Activities - Schedule of Notional Amounts and Fair Values of Derivatives Outstanding (Parenthetical) (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Risk Participation Agreements [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Maximum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives, Net	$ 100,000	$ 100,000

XML

Derivative Financial Instruments and Hedging Activities - Impact of Derivatives on Pre-Tax Income and Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	$ 12.3	$ 15.5
Amount of Pre-Tax Gain (Loss) Recognized in AOCL		(0.2)
Derivatives Not Designated as Hedging Instruments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	7.1	9.6
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	0.8
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)	(1.1)
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Swaps/Caps [Member] | Commercial Customers [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	45.4	210.7
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Swaps/Caps [Member] | Institutional Counterparties [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	(39.1)	(200.3)
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	0.3	(0.6)
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	0.5	0.1
Derivatives Designated as Hedging Instruments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	5.2	5.9
Amount of Pre-Tax Gain (Loss) Recognized in AOCL		(0.2)
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
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swaps/Caps [Member] | Fair Value [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	4.5	6.4
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swaps/Caps [Member] | Cash Flow [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	$ 0.6	(0.6)
Amount of Pre-Tax Gain (Loss) Recognized in AOCL		$ (0.2)

XML

Balance Sheet Offsetting - Summary of Gross Presentation, Financial Instruments that are Eligible for Offset in Consolidated Statement of Condition (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	$ 102.7	$ 174.0
Financial liabilities, Gross Amount Recognized	61.4	121.7
Financial assets, Gross Amount Recognized	10.6	79.8
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	10.6	79.8
Financial assets, Financial Instruments	(7.0)	(58.3)
Financial assets, Collateral	(0.9)	(20.9)
Financial assets, Net Amount	2.7	0.6
Financial liabilities, Gross Amount Recognized	21.1	74.4
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	21.1	74.4
Financial liabilities, Financial Instruments	(7.0)	(58.3)
Financial liabilities, Collateral	(13.9)	(13.4)
Financial liabilities, Net Amount	0.2	2.7
Foreign Exchange Contracts [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	0.2	0.6
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	0.2	0.6
Financial assets, Net Amount	0.2	0.6
Financial liabilities, Gross Amount Recognized	0.2	0.3
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	0.2	0.3
Financial liabilities, Net Amount	0.2	0.3
Counterparty A [Member] | Interest Rate Swaps/Caps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	1.7	1.9
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	1.7	1.9
Financial assets, Financial Instruments	(1.7)	(1.9)
Financial liabilities, Gross Amount Recognized	3.2	4.3
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	3.2	4.3
Financial liabilities, Financial Instruments	(1.7)	(1.9)
Financial liabilities, Collateral	(1.5)	(2.4)
Counterparty B [Member] | Interest Rate Swaps/Caps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	0.8	1.0
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	0.8	1.0
Financial assets, Financial Instruments	(0.8)	(1.0)
Financial liabilities, Gross Amount Recognized	6.9	7.7
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	6.9	7.7
Financial liabilities, Financial Instruments	(0.8)	(1.0)
Financial liabilities, Collateral	(6.1)	(6.7)
Counterparty C [Member] | Interest Rate Swaps/Caps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	1.4	1.7
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	1.4	1.7
Financial assets, Financial Instruments	(1.4)	(1.7)
Financial liabilities, Gross Amount Recognized	3.7	3.4
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	3.7	3.4
Financial liabilities, Financial Instruments	(1.4)	(1.7)
Financial liabilities, Collateral	(2.3)	(1.1)
Financial liabilities, Net Amount		0.6
Counterparty D [Member] | Interest Rate Swaps/Caps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	2.8	3.4
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	2.8	3.4
Financial assets, Financial Instruments	(2.8)	(3.4)
Financial liabilities, Gross Amount Recognized	5.9	6.9
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	5.9	6.9
Financial liabilities, Financial Instruments	(2.8)	(3.4)
Financial liabilities, Collateral	(3.1)	(1.7)
Financial liabilities, Net Amount		1.8
Counterparty E [Member] | Interest Rate Swaps/Caps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	2.4	69.6
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	2.4	69.6
Financial assets, Financial Instruments		(50.0)
Financial assets, Collateral		(19.6)
Financial assets, Net Amount	2.4
Financial liabilities, Gross Amount Recognized		50.0
Financial liabilities, Gross Amount Offset		0.0
Financial liabilities, Net Amount Presented		50.0
Financial liabilities, Financial Instruments		(50.0)
Other Counterparties [Member] | Interest Rate Swaps/Caps [Member]
Offsetting Assets And Liabilities [Line Items]
Financial assets, Gross Amount Recognized	1.3	1.6
Financial assets, Gross Amount Offset	0.0	0.0
Financial assets, Net Amount Presented	1.3	1.6
Financial assets, Financial Instruments	(0.3)	(0.3)
Financial assets, Collateral	(0.9)	(1.3)
Financial assets, Net Amount	0.1
Financial liabilities, Gross Amount Recognized	1.2	1.8
Financial liabilities, Gross Amount Offset	0.0	0.0
Financial liabilities, Net Amount Presented	1.2	1.8
Financial liabilities, Financial Instruments	(0.3)	(0.3)
Financial liabilities, Collateral	$ (0.9)	$ (1.5)

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Balance Sheet Offsetting - Additional Information (Detail) $ in Millions	Sep. 30, 2017 USD ($)
US Treasury [Member]
Offsettting Assetsand Liabilities [Line Items]
Fair value of treasury securities	$ 248.3
Mortgage-Backed Securities [Member]
Offsettting Assetsand Liabilities [Line Items]
Fair value of treasury securities	$ 254.4

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Balance Sheet Offsetting - Summary of Collateral Swaps (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Offsettting Assetsand Liabilities [Line Items]
Total repurchase agreements, Net amounts Presented in the Balance Sheet	$ 295.8	$ 343.3
Collateral Swaps [Member]
Offsettting Assetsand Liabilities [Line Items]
Total resale agreements, Gross Amount Recognized	250.0
Total resale agreements, Gross Amount Offset in the Balance Sheet	(250.0)
Total resale agreements, Net amount Presented in the Balance Sheet	0.0
Total repurchase agreements, Gross Amount Recognized	250.0
Total repurchase agreements, Gross Amounts Offset in the Balance Sheet	(250.0)
Total repurchase agreements, Net amounts Presented in the Balance Sheet	$ 0.0

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New Accounting Standards - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other windfall income tax benefits	$ 1.3
Decrease in effective income tax rate	0.05%
Percentage of interest income on financial assets and financial liabilities	75.00%
Percentage of non-interest income on financial assets and financial liabilities	25.00%
Equity securities, amortized cost	$ 3,220.6	$ 4,463.2
Equity securities, fair value	3,197.5	4,409.9
Equity Securities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity securities, amortized cost	9.6	0.2
Equity securities, fair value	$ 9.0	$ 0.2