Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - People's United Financial, Inc. | d912630dex991.htm |
| 8-K - 8-K - People's United Financial, Inc. | d912630d8k.htm |
 First Quarter 2015 Results
April 16, 2015
NASDAQ: PBCT
Exhibit 99.2 |
 1
Forward-Looking Statement
Certain statements contained in this release are forward-looking in nature.
These include all statements about People's United Financial's plans,
objectives, expectations and other statements that are not historical facts,
and usually use words such as "expect," "anticipate," "believe," "should" and similar
expressions. Such statements represent management's current beliefs, based upon
information available at the time the statements are made, with regard to
the matters addressed. All forward-looking statements are
subject
to
risks
and
uncertainties
that
could
cause
People's
United
Financial'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 Financial include, but are not
limited to: (1) changes in general, national or regional economic
conditions; (2) changes in interest rates; (3) changes in loan default and
charge-off rates; (4) changes in deposit levels; (5) changes in levels of
income and expense in non- interest income and expense related
activities; (6) changes in accounting and regulatory guidance applicable to
banks; (7) price levels and conditions in the public securities markets generally; (8)
competition and its effect on pricing, spending, third-party relationships and
revenues; and (9) changes in regulation resulting from or relating to
financial reform legislation. People's United Financial does not undertake
any obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. |
 2
First Quarter 2015 Overview
•
•
Net
interest
income
1
of
$228
million,
consistent
with
recent
quarters
•
Net interest margin of 2.91%, a decrease of 9 basis points
•
Loan growth of $337 million, 5.1% annualized growth rate
•
Organic deposit growth of $1.0 billion, 17.3% annualized growth rate
•
Non-interest income of $89 million, increased 3% from the fourth quarter and
11% from the prior year quarter •
Operating expenses of $212 million, a modest increase due to traditionally higher
first quarter costs, but flat compared to the prior year quarter
•
Efficiency ratio was 61.9%, a slight increase from 61.3%, but improved from 63.9%
in the prior year quarter •
Net loan charge-offs were 0.11%, an improvement from 0.13%
(Comparisons versus fourth quarter 2014, unless noted differently)
1
Net interest income on a fully taxable equivalent basis for 4Q 2014 and 1Q 2015
was $233.2 million and $233.9 million, respectively. Operating earnings of $63.2 million, an
increase of 12% from the prior year quarter |
 3
Net Interest Income
($ in millions)
Linked Quarter Change
Linked Quarter Change
$3.4
$2.8
($1.1)
($0.1)
$228.1
$228.1
($1.7)
($3.3)
1
Net interest income on a fully taxable equivalent basis for 4Q 2014 and 1Q 2015
was $233.2 million and $233.9 million, respectively. 4Q 2014
Investments
Originated
Loans
Calendar
Acquired
Deposits
Borrowings
1Q 2015
Days
Loans
1 |
 4
Net Interest Margin
Linked Quarter Change
Linked Quarter Change
(0.05%)
(0.02%)
3.00%
2.91%
(0.01%)
(0.01%)
4Q 2014
Calendar
New Loan
Deposits
Investments
1Q 2015
Days
Volume & Mix |
 5
Loans
($ in millions)
Linked Quarter Change
Linked Quarter Change
$317
$113
($93)
$26,592
$26,929
Annualized linked quarter change: +5.1%
December 31, 2014
Commercial
Retail
Acquired
March 31, 2015 |
 6
Deposits
Linked Quarter Change
$635
$377
Retail
²
$18,926
($ in millions)
Annualized linked quarter change: +15.5%
Commercial
¹
$7,212
Commercial
¹
$7,847
$26,138
$27,150
Retail
²
$19,303
1
Commercial includes Municipal deposits of $1,458 at 12/31/2014 and $1,608 at
3/31/2015 2
Retail includes brokered deposits of $2,633 at 12/31/2014 and $2,629 at
3/31/2015 December 31, 2014
Commercial
Retail
March 31, 2015 |
 7
Non-Interest Income
($ in millions)
Linked Quarter Change
$3.7
$1.9
$86.8
$2.1
$89.0
($2.7)
($1.9)
$1.0
($1.9)
4Q 2014
Commercial
Banking Lending
Fees
Customer
Interest
Rate Swap
Income
Net Gain on
Sale of Loans
Insurance
Net
Security
Gains
Bank Service
Charges
Other
1Q 2015 |
 8
Non-Interest Expense
($ in millions)
Linked Quarter Change
($3.1)
$207.1
$5.4
$6.6
$211.6
$0.6
$207.7
$217.6
Operating
Non-Operating
$6.0
($1.4)
$2.4
4Q 2014
Non-Operating
Compensation
& Benefits
Occupancy
& Equipment
Advertising
& Promotion
Other
1Q 2015 |
 9
Efficiency Ratio
63.9%
61.8%
61.4%
61.3%
61.9%
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015 |
 10
Asset Quality
NPAs / Loans & REO (%)
1
Source: SNL Financial and Company filings
Notes: Top 50 Banks represents the largest 50 banks by total assets in each
respective quarter PBCT
Peer Group (Median)
Top 50 Banks (Median)
0.80
0.5
1.0
1.5
2.0
2.5
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
Non-performing assets (excluding acquired non-performing loans) as a percentage of
originated loans plus all REO and repossessed
assets; acquired non-performing loans excluded as risk of loss has been considered by virtue of
(i) our estimate of acquisition-date fair
value, (ii) the existence of an FDIC loss sharing agreement, and/or (iii) allowance for loan losses
established subsequent to acquisition
1 |
 11
Asset Quality
Net Charge-Offs / Average Loans (%)
1
1
Source: SNL Financial and Company filings
Notes: Top 50 Banks represents the largest 50 banks by total assets in each
respective quarter PBCT
Peer Group (Median)
Top 50 Banks (Median)
0.11
0.0
0.1
0.2
0.3
0.4
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
Excluding acquired loan charge-offs, PBCT’s charge-off ratio was 0.11%, 0.13%, 0.12%,
0.09%, and 0.09%, in 1Q 2015, 4Q 2014, 3Q 2014, 2Q 2014,
and 1Q 2014, respectively |
 12
Growing Future Earnings Per Share
Loans
Deposits
Deposits per Share
Loans per Share
Loans ($ in billions)
Deposits ($ in billions)
$90.02
$45
$55
$65
$75
$85
$95
$16
$18
$20
$22
$24
$26
$28
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
$45
$55
$65
$75
$85
$95
$16
$18
$20
$22
$24
$26
$28
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
$90.76 |
 13
Operating Return on Average Assets
0.69%
0.72%
0.74%
0.75%
0.71%
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015 |
 14
Operating Return on Average Tangible Equity
9.3%
9.6%
9.9%
10.1%
9.9%
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015 |
 15
Capital Ratios
(Effective January 1, 2015, all ratios calculated in accordance with Basel
III) 1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
People’s United Financial
Tang. Com. Equity/Tang. Assets
8.0%
7.9%
7.8%
7.5%
7.5%
Tier 1 Leverage
1, 5
8.4%
8.3%
8.1%
7.9%
8.3%
Common Equity Tier 1 Capital
2, 5
10.1%
10.0%
9.9%
9.8%
10.0%
Tier 1 Risk-Based Capital
3, 5
10.1%
10.0%
9.9%
9.8%
10.0%
Total Risk-Based Capital
4, 5
11.2%
12.5%
12.3%
12.2%
12.0%
People’s United Bank
Tier 1 Leverage
1, 5
9.1%
9.0%
8.8%
8.5%
8.8%
Common Equity Tier 1 Capital
2, 5
11.0%
10.8%
10.7%
10.5%
10.6%
Tier 1 Risk-Based Capital
3, 5
11.0%
10.8%
10.7%
10.5%
10.6%
Total Risk-Based Capital
4, 5
12.2%
13.5%
13.3%
13.0%
13.0%
Basel III Notes:
1.
Tier 1 Leverage ratio represents Tier 1 Capital divided by Average Total Assets (less goodwill, other
acquisition-related intangibles and other deductions from Common Equity Tier 1 Capital) 2.
Common Equity Tier 1 Capital ratio represents total stockholder’s equity, excluding: (i)
after-tax net unrealized gains (losses) on certain securities classified as available for sale; (ii) goodwill
and other acquisition-related intangibles; and (iii) the amount recorded in accumulated other
comprehensive income (loss) relating to pension and other postretirement benefits divided by Total
Risk-Weighted Assets
3.
Tier 1 Risk-Based Capital ratio represents Common Equity Tier 1 Capital plus additional Tier 1
Capital (together, "Tier 1 Capital") divided by Total Risk-Weighted Assets 4.
Total Risk-Based Capital ratio represents Tier 1 Capital plus subordinated notes and
debentures, up to certain limits, and the allowance for loan losses, up to 1.25% of Total Risk-Weighted
Assets, divided by Total Risk-Weighted Assets
5.
Well capitalized limits under Basel III capital rules are: Tier 1 Leverage Ratio, 5%; Common Equity
Tier 1 Capital Ratio, 6.5%; Tier 1 Risk-Based Capital Ratio, 8%; and Total Risk-Based
Capital Ratio, 10% |
 16
Interest Rate Risk Profile
Net Interest Income (NII) Sensitivity
1
Immediate Parallel Shock
Est. Change in NII
Yield Curve Twist
1
Est. Change in NII
Mar. 31, 2015
Dec. 31, 2014
-1.3%
3.9%
7.6%
10.2%
12.5%
-1.1%
3.4%
6.9%
9.2%
11.1%
Down 25
Up 100
Up 200
Up 300
Up 400
-0.3%
1.3%
3.2%
-4.7%
2.7%
5.0%
-0.2%
1.1%
2.7%
-4.1%
2.6%
4.9%
Short End -25
Short End +100
Short End +200
Long End -100
Long End +100
Long End +200
Yield curve twist pivot point is 18 month point on yield curve. Short End defined as overnight
to 18 months. Long End defined as terms
greater than 18 months. |
 17
Experienced
leadership team
Operate in large &
attractive Northeast
markets…
…with significant
knowledge at the local
level
Commitment to
relationship-based
banking
Breadth of products
& services
Conservative & well-
defined underwriting
culture
Premium brand built
over 170 years
Deep focus on
expense management
Summary
A Uniquely Positioned Franchise |
 Appendix |
 19
Asset Quality
Originated Portfolio Coverage Detail as of March 31, 2015
ALLLs / Loans
NPLs / Loans
ALLLs / NPLs
Note –
ALLLs: Commercial: $173 million, Retail: $18 million, Total: $191 million
0.91%
0.26%
0.74%
Commercial
Retail
Total
0.64%
0.82%
0.68%
Commercial
Retail
Total
143%
32%
107%
Commercial
Retail
Total |
 20
Peer Group
Firm
Ticker
City
State
1
Associated
ASB
Green Bay
WI
2
BancorpSouth
BXS
Tupelo
MS
3
City National
CYN
Los Angeles
CA
4
Comerica
CMA
Dallas
TX
5
Commerce
CBSH
Kansas City
MO
6
Cullen/Frost
CFR
San Antonio
TX
7
East West
EWBC
Pasadena
CA
8
First Niagara
FNFG
Buffalo
NY
9
FirstMerit
FMER
Akron
OH
10
Fulton
FULT
Lancaster
PA
11
Huntington
HBAN
Columbus
OH
12
M&T
MTB
Buffalo
NY
13
New York Community
NYCB
Westbury
NY
14
Signature
SBNY
New York
NY
15
Susquehanna
SUSQ
Lititz
PA
16
Synovus
SNV
Columbus
GA
17
Valley National
VLY
Wayne
NJ
18
Webster
WBS
Waterbury
CT
19
Wintrust
WTFC
Lake Forest
IL
20
Zions
ZION
Salt Lake City
UT |
 For more information, investors may contact:
Andrew S. Hersom
(203) 338-4581
andrew.hersom@ peoples.com
NASDAQ: PBCT |