Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Investments, All Other Investments [Abstract]

Summary of Contractual or Notional Amounts of Financial Instruments

A summary of the contractual or notional amounts of People’s United’s lending-related and derivative financial instruments follows:

As of December 31 (in millions)	2019		2018
Lending-Related Financial Instruments: (1)
Loan origination commitments and unadvanced lines of credit:
Commercial and industrial	$	5,549.9	$	4,937.1
Home equity and other consumer	3,401.9		2,646.6
Commercial real estate	1,614.9		1,095.4
Equipment financing	471.0		459.7
Residential mortgage	54.7		78.7
Letters of credit:
Stand-by	185.2		139.4
Commercial	4.4		5.0
Derivative Financial Instruments: (2)
Interest rate swaps:
For market risk management	585.0		585.0
For commercial customers:
Customer	8,847.7		7,455.9
Institutional counterparties	8,851.8		7,161.3
Interest rate caps:
For commercial customers:
Customer	246.0		329.1
Institutional counterparties	246.0		329.1
Risk participation agreements	882.8		576.5
Foreign exchange contracts	180.4		145.2
Forward commitments to sell residential mortgage loans	23.3		9.5
Interest rate-lock commitments on residential mortgage loans	33.6		13.6

(1)The contractual amounts of these financial instruments represent People’s United’s maximum potential exposure to credit loss, assuming: (i) the instruments are fully funded at a later date; (ii) the borrower does not meet contractual repayment obligations; and (iii) any collateral or other security proves to be worthless.

(2)The contractual or notional amounts of these financial instruments are substantially greater than People’s United’s maximum potential exposure to credit loss.

Schedule of Notional Amounts and Fair Values of Derivatives Outstanding

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

						Fair Values (1)
	Type of Hedge	Notional Amounts				Assets				Liabilities
As of December 31 (in millions)		2019		2018		2019		2018		2019		2018
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	8,847.7	$	7,455.9	$	320.5	$	76.3	$	13.9	$	102.6
Institutional counterparties	N/A	8,851.8		7,161.3		17.1		22.6		78.2		32.4
Interest rate caps:
Commercial customers	N/A	246.0		329.1		1.6		0.6		0.1		2.5
Institutional counterparties	N/A	246.0		329.1		0.1		2.5		1.6		0.6
Risk participation agreements (2)	N/A	882.8		576.5		—		—		0.1		—
Foreign exchange contracts	N/A	180.4		145.2		1.2		0.9		1.8		0.8
Forward commitments to sell residential mortgage loans	N/A	23.3		9.5		0.5		0.1		—		—
Interest rate-lock commitments on residential mortgage loans	N/A	33.6		13.6		—		—		0.5		0.1
Total						341.0		103.0		96.2		139.0
Derivatives Designated as Hedging Instruments:
Interest rate swaps:
Subordinated notes	Fair value	375.0		375.0		—		—		—		—
Loans	Cash flow	210.0		210.0		—		—		—		—
Total						—		—		—		—
Total fair value of derivatives						$	341.0	$	103.0	$	96.2	$	139.0

(1)Assets are recorded in other assets and liabilities are recorded in other liabilities.

(2)Fair value totaled less than $0.1 million at December 31, 2018.

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:

	Type of Hedge	Amount of Pre-Tax Gain (Loss) Recognized in Earnings (1)						Amount of Pre-Tax Gain (Loss) Recognized in AOCL
Years ended December 31 (in millions)		2019		2018		2017		2019		2018		2017
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	374.9	$	(3.6)	$	5.3	$	—	$	—	$	—
Institutional counterparties	N/A	(350.3)		17.1		6.1		—		—		—
Interest rate caps:
Commercial customers	N/A	1.4		1.1		0.7		—		—		—
Institutional counterparties	N/A	(1.5)		(1.0)		(0.3)		—		—		—
Foreign exchange contracts	N/A	1.0		0.9		0.5		—		—		—
Risk participation agreements	N/A	(0.4)		0.2		—		—		—		—
Forward commitments to sell residential mortgage loans	N/A	0.3		(0.1)		(0.2)		—		—		—
Interest rate-lock commitments on residential mortgage loans	N/A	(0.4)		0.1		0.3		—		—		—
Total		25.0		14.7		12.4		—		—		—
Derivatives Designated as Hedging Instruments:
Interest rate swaps	Fair value	0.3		2.1		5.9		—		—		—
Interest rate swaps	Cash flow	(1.2)		(0.6)		0.8		1.9		(1.7)		(1.0)
Interest rate locks	Cash flow	0.1		0.1		0.1		—		—		—
Total		(0.8)		1.6		6.8		1.9		(1.7)		(1.0)
Total		$	24.2	$	16.3	$	19.2	$	1.9	$	(1.7)	$	(1.0)

(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.