Acquisition and divestiture (Tables)

9 Months Ended

Sep. 30, 2022

Business Combinations [Abstract]

Summary of Identifiable Assets Acquired, Liabilities Assumed and Preferred Stock Exchanged as of Acquisition

The consideration paid for People’s United common equity and the preliminary amounts of identifiable assets acquired, liabilities assumed and preferred stock converted as of the acquisition date follows.

	(In thousands)
Consideration:
Common stock issued (50,325,004 shares)	$	8,286,515
Common stock awards converted		104,810
Cash		1,824
Total consideration		8,393,149
Net assets acquired:
Identifiable assets
Cash and due from banks		395,747
Interest-bearing deposits at banks		9,193,346
Investment securities		11,574,689
Loans and leases		35,840,648
Core deposit and other intangible assets		261,000
Other assets		2,979,388
Total identifiable assets acquired		60,244,818
Liabilities and preferred stock
Deposits		52,967,915
Borrowings		1,389,012
Other liabilities		1,142,387
Total liabilities assumed		55,499,314
Preferred stock		260,600
Total liabilities and preferred stock		55,759,914
Net assets acquired		4,484,904
Goodwill	$	3,908,245

Summary of Unpaid Principal Balance to Fair Value of PCD Loans and Leases by Portfolio Segment

The following table reconciles the unpaid principal balance to the fair value of PCD loans and leases at April 1, 2022:

	Total
Unpaid principal balance (a)	$	3,410,506
Allowance for credit losses at acquisition (a)		(99,000	)
Non-credit discount		(106,814	)
Fair value	$	3,204,692

(a)The unpaid principal balance and allowance for credit losses at acquisition is net of charge-offs of $33 million recognized on the PCD loans.

Summary of Allocation of Goodwill

The preliminary allocation of goodwill recorded as a result of the acquisition to the Company’s reportable segments is as follows:

	December 31, 2021		Acquisition of People's United		September 30, 2022
	(In thousands)
Business Banking	$	864,366	$	693,905	$	1,558,271
Commercial Banking		1,401,873		2,686,253		4,088,126
Commercial Real Estate		654,389		291,217		945,606
Discretionary Portfolio		—		—		—
Residential Mortgage Banking		—		—		—
Retail Banking		1,309,191		221,196		1,530,387
All Other		363,293		15,674		378,967
Total	$	4,593,112	$	3,908,245	$	8,501,357

Summary of Acquisition, Pro Forma Information

The following table presents certain pro forma information as if People’s United had been acquired on January 1, 2021.

	Pro forma				Pro forma
	Nine Months Ended September 30,				Three Months Ended September 30
	2022		2021		2021
	(In thousands)				(In thousands)
Total revenues(a)	$	6,134,400	$	6,056,364	$	2,054,462
Net income		1,399,913		1,769,781		664,820

(a)Represents the total of net interest income and other income.

Summary of Merger Related Expenses

A summary of merger-related expenses included in the consolidated statement of income follows.

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
	(In thousands)				(In thousands)
Salaries and employee benefits	$	13,094	$	60	$	98,480	$	64
Equipment and net occupancy		2,106		1		4,415		1
Outside data processing software		2,277		625		3,245		869
Advertising and marketing		2,177		505		4,004		529
Printing, postage and supplies		651		730		3,833		2,779
Other cost of operations		32,722		6,905		179,231		18,428
Other expense	$	53,027	$	8,826	$	293,208	$	22,670