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EX-99.1 - EX-99.1 - People's United Financial, Inc.d634544dex991.htm
8-K - 8-K - People's United Financial, Inc.d634544d8k.htm

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Third Quarter 2018 Results October 18, 2018 Exhibit 99.2


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Forward-Looking Statement Certain statements contained in this presentation are forward-looking in nature. These include all statements about People's United Financial, Inc. (“People’s United”) 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’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. 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.


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1 Net interest income on a fully taxable equivalent basis was $313 million, an increase of $5 million or 2%. (Comparisons versus second quarter 2018, unless noted otherwise) Third Quarter 2018 Overview Record Quarterly Net income of $117 million, or $0.33 per Common Share Completed the acquisition of First Connecticut Bancorp on October 1st Net interest income1 of $306 million, an increase of $5 million or 2% Net interest margin of 3.15%, an increase of 5 basis points Average loan balances of $32.2 billion, an increase of $50 million or <1% Period-end balances of $32.2 billion, a decrease of $313 million or 1% Mortgage Warehouse Lending period-end balances declined $201 million Run-off of the transactional portion of the New York multi-family portfolio lowered period-end balances by $128 million Average deposit balances of $33.1 billion, an increase of $522 million or 2% Period-end balances of $33.2 billion, an increase of $742 million or 2% Non-interest income of $92 million, a decrease of $3 million or 3% Non-interest expense of $241 million, an improvement of $7 million or 3% Includes merger-related expense of $500,000 compared to $2.9 million in the 2nd quarter Efficiency ratio of 56.7%, an improvement of 170 basis points Net loan charge-offs of 0.09%, an increase of 3 basis points


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Net Interest Income1 ($ in millions) $301.2 $306.4 1 Net interest income on a fully taxable equivalent basis for 2Q 2018 and 3Q 2018 was $307.8 million and $313.0 million, respectively. +$5.2 or 2% Linked-Quarter Change $10.7 ($9.1) $1.9 $1.2 $0.5


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Net Interest Margin 3.10% 3.15% +5 bps Linked-Quarter Change 10 bps (9 bps) 2 bps 1 bp 1 bp


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Loans: Average Balances $32,166 ($ in millions) $32,116 Linked-Quarter Change Linked-quarter change: +$50 million or <1% $197 ($162) $34 $27 ($46)


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Deposits: Average Balances ($ in millions) $33,058 $32,536 Linked-Quarter Change Linked-quarter change: +$522 million or 2% $559 ($157) $152 ($32)


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Non-Interest Income ($ in millions) $94.9 $92.3 ($1.5) $1.5 ($2.6) or (3%) Linked-Quarter Change $0.6 ($1.2) ($2.0)


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Non-Interest Expense ($ in millions) $241.3 $248.6 Ex. Merger-Related Expenses: Improved by $4.9 or 2% Linked-Quarter Change $0.8 ($2.4) ($4.1) ($1.9) $0.7 ($0.4)


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Efficiency Ratio Quarterly Trend Note: The efficiency ratio, beginning with the 1st quarter of 2018, reflects the unfavorable impact of lower FTE adjustments on net interest income due to tax reform.


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Asset Quality 1Non-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 Notes: Source: SNL Financial Top 50 Banks represents the largest 50 banks by total assets in each respective quarter. 2Ex. acquired loan charge-offs, PBCT’s charge-off ratio was 0.07%, 0.03%, 0.04%, 0.06% & 0.05% in 3Q 2018, 2Q 2018, 1Q 2018, 4Q 2017& 3Q 2017, respectively PBCT Peer Group (Median) Top 50 Banks (Median) PBCT Peer Group (Median) Top 50 Banks (Median) Non-Performing Assets / Loans & REO (%)1 Net Charge-offs / Average Loans2


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Returns Return on Average Assets Return on Average Tangible Common Equity


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Capital Ratios Sep. 30, 2017 Dec. 31, 2017 Mar. 31, 2018 Jun. 30, 2018 Sep. 30, 2018 People’s United Financial, Inc. Tang. Com. Equity/Tang. Assets 7.1% 7.2% 7.3% 7.3% 7.6% Tier 1 Leverage 8.3% 8.3% 8.5% 8.6% 8.7% Common Equity Tier 1 9.5% 9.7% 10.1% 10.0% 10.3% Tier 1 Risk-Based 10.2% 10.4% 10.8% 10.8% 11.1% Total Risk-Based 12.0% 12.2% 12.6% 12.5% 12.8% People’s United Bank, N.A. Tier 1 Leverage 8.6% 8.5% 8.6% 9.1% 9.2% Common Equity Tier 1 10.6% 10.7% 11.0% 11.4% 11.6% Tier 1 Risk-Based 10.6% 10.7% 11.0% 11.4% 11.6% Total Risk-Based 12.6% 12.6% 12.9% 13.4% 13.6% Note: Capital ratios beginning March 31, 2018 reflect the reclassification of approximately $38 million from AOCI to retained earnings representing the stranded tax effects arising as a result of the enactment of the Tax Cuts and Jobs Act. The reclassification favorably impacted capital ratios by approximately 11 basis points.


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Interest Rate Risk Profile 1Yield 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. Immediate Parallel Shock Est. Change in NII Yield Curve Twist1 Est. Change in NII Sep. 30, 2018 Jun. 30, 2018 Net Interest Income (NII) Sensitivity


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Appendix


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Loans By State $21,737 $24,390 $26,592 $29,745 $32,575 $28,411 ($ in millions, end of period balances) State Breakdown $32,199


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Deposits By State $21,751 $22,557 $26,138 $29,861 $33,056 $28,417 ($ in millions, end of period balances) State Breakdown $33,210


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Asset Quality Originated Portfolio Coverage Detail as of September 30, 2018 Note – ALLLs: Commercial: $203 million, Retail: $31 million, Total: $234 million. ALLLs / Loans NPLs / Loans ALLLs / NPLs


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Peer Group Firm Ticker City State 1 Associated ASB Green Bay WI 2 Citizens CFG Providence RI 3 Comerica CMA Dallas TX 4 Cullen/Frost CFR San Antonio TX 5 East West EWBC Pasadena CA 6 First Horizon FHN Memphis TN 7 Huntington HBAN Columbus OH 8 KeyCorp KEY Cleveland OH 9 M&T MTB Buffalo NY 10 New York Community NYCB Westbury NY 11 Signature SBNY New York NY 12 Synovus SNV Columbus GA 13 Umpqua UMPQ Portland OR 14 Webster WBS Waterbury CT 15 Zions ZION Salt Lake City UT


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For more information, investors may contact: Andrew S. Hersom (203) 338-4581 andrew.hersom@peoples.com