trending Market Intelligence /marketintelligence/en/news-insights/trending/3L2HXjBNa2wCy6yOlQISGA2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

CECL pricing concerns will not change People's United Financial's M&A strategy

StreetTalk – Episode 69: Banks left with pockets full of cash and few places to go

Street Talk – Episode 69: Banks left with pockets full of cash and few places to go

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

CECL pricing concerns will not change People's United Financial's M&A strategy

Despite industry concerns that the new current expected credit loss standard will impact mergers due to "double-count" issues, People's United Financial Inc. executives said CECL will not change the bank's M&A strategy.

During its third-quarter earnings conference call, CFO R. David Rosato said the bank's loan loss reserves could increase by 15% to 25%, or about $40 million to $60 million, after implementing CECL on Jan. 1, 2020. The increase is driven primarily by the bank's longer duration retail portfolio but is partially offset by its shorter duration commercial portfolio. This estimate is based on current economic conditions and results at the end of the third quarter, he said.

While Rosato noted that the new accounting standard is "harder for all of us," he said CECL will not change the acquisitive bank's M&A strategy. "A new accounting regime will change the recorded deal metrics in the short-term, but it's not going to change that strategy," he said.

People's United Financial has been an active acquirer, completing nine acquisitions since 2015 and currently has a pending acquisition of United Financial Bancorp Inc., expected to close in the fourth quarter. The bank is "very thoughtful" of the impact accounting for CECL may have on its acquisition of United Financial Bancorp, Rosato said.

Aside from CECL, the bank is paying a lot of attention to the declining interest rate environment when looking at future M&A pricing, said CEO John Barnes.