 Investor Presentation
February 2017 NASDAQ: PBCT Exhibit 99.1 |
 1 Forward-Looking Statement Certain statements contained in this presentation 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, 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 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 PBCT: Compelling Investment Opportunity • Leading market position in one of the best commercial banking markets in the U.S. • Significant growth runway within existing markets – expanding in two of the largest MSAs in the U.S. – New York City #1 and Boston #10 • Ability to maintain pristine credit quality – Average annual net charge-offs/average loans since 2007 have been 18bps • Improving profitability – Six consecutive years of growth in earnings per common share (2011-2016) – 2016 net income of $281 million, up 8% vs. prior year period, or 7% on a per common share basis
• Low operating risk profile – Consistently profitable throughout the credit cycle – Straightforward and diversified portfolio of products – no complex financial exposures • Robust liquidity – Strong deposit market share in most core markets – Unused FHLB of Boston borrowing capacity of $6.8 billion at December 31, 2016 • Continued capital deployment via organic growth and dividends – Twenty-five consecutive quarters of loan growth – Dividend yield of approximately 3.6% |
 3 Premium Brand Built Over 170 Years Corporate Overview People’s United Financial, Inc. NASDAQ (PBCT) Headquarters Bridgeport, CT Chief Executive Officer Jack Barnes Chief Financial Officer David Rosato Market Capitalization (2.3.2017) $5.8 billion Assets $40.6 billion Loans $29.7 billion Deposits $29.9 billion Branches 387 In-store Branches (2) 146 ATMs 593 Standalone ATMs (3) 110 Founded 1842 1 Statistics as of December 31, 2016, unless noted otherwise 2 Exclusive relationship with Stop & Shop 3 Includes 36 ATMs in Stop & Shop locations where a branch is not present |
 2016 2010 2011 2012 2008 4 Premium Brand Built Over 170 Years Acquired: Chittenden Corp. which comprised: Chittenden Bank Burlington, VT Ocean Bank Portsmouth, NH Maine Bank & Trust Portland, ME Merrill Bank Bangor, ME Flagship Bank Worcester, MA Bank of West. Mass. Springfield, MA Acquired: 57 branches in greater New York metro area from RBS Citizens – including 53 branches in Stop & Shop supermarkets Since 1995, PBCT has had an exclusive relationship with Stop & Shop to operate branches in Connecticut stores Acquired: Danversbank Danvers, MA Geographic Expansion in Recent Years Acquired: Financial Federal New York, NY Acquired: Butler Bank Lowell, MA RiverBank North Andover, MA Bank of Smithtown Smithtown, NY June 27 Announced acquisition of: Suffolk Bancorp Riverhead, NY |
 Premium
Brand Built Over 170 Years In-Store Branches Versus Traditional
Branches •
Partnership allows us to leverage People’s United brand with the ~3.3 million
shoppers who visit Connecticut and New York Stop & Shop stores every
week •
In-store locations operate under the same business model as traditional branches
and sell all of the Bank’s products and services
• Connecticut and New York in-store branches accounted for a significant portion of the new branch business booked
Note: statistics represent Connecticut and New York branches only
Last twelve months through December 31, 2016
In-Store Branches
Traditional Branches 100% - % 60% 42% 31% 25% 26% 30% 40% 43% 58% 69% 75% 74% 70% Consumer Checking Accounts Opened Savings Accounts Opened Business Checking Accounts Opened Home Equity Loans Originations Mortgage Loan Originations Business Banking Loan Originations Investment Sales 57% On average, in-store locations are open 37% more hours per week (56 hours vs.
41 hours), but are approximately 30% less expensive to operate.
5 |
 Jack
Barnes President & CEO, Director
30+ People’s United Bank (SEVP, CAO), Chittenden, FDIC Galan Daukas SEVP Wealth Management 30+ People’s United Bank, Washington Trust, The Managers Funds, Harbor Capital Mgmt Sara Longobardi SEVP Retail Banking 25+ People’s United Bank Dave Norton SEVP & Chief HR Officer 5+ People’s United Bank, New York Times, Starwood, PepsiCo Lee Powlus SEVP & Chief Administrative Officer 25+ People’s United Bank, Chittenden, Alltel David Rosato SEVP & CFO 30+ People’s United Bank, Webster, M&T Chantal Simon SEVP & Chief Risk Officer 25+ People’s United Bank, Merrill Lynch US Bank, Lazard Freres & Co. Jeff Tengel SEVP Commercial Banking 30+ People’s United Bank, PNC, National City Bob Trautmann SEVP & General Counsel 20+ People’s United Bank, Tyler Cooper & Alcorn Kirk Walters SEVP Corporate Development, Director 25+ People’s United Bank, Santander, Sovereign, Chittenden, Northeast Financial Name Position Years in Banking Professional Experience Experienced Leadership Team 6 |
 7 Operate in Large & Attractive Northeast Markets NYC-Northern NJ-PA • Population: 20.3 million • Median HH Income: $66,610 • Businesses: 810,883 • Population Density (#/sq miles): 2,426 • Unemployment Rate (%): 4.5 • $100K+ Households (%): 33.0 Boston, MA • Population: 4.7 million • Median HH Income: $73,624 • Businesses: 203,770 • Population Density (#/sq miles): 1,361 • Unemployment Rate (%): 2.4 • $100K+ Households (%): 36.6 Hartford, CT • Population: 1.2 million • Median HH Income: $68,692 • Businesses: 52,315 • Population Density (#/sq miles): 803 • Unemployment Rate (%): 3.7 • $100K+ Households (%): 32.1 Bridgeport-Stamford, CT • Population: 953,000 • Median HH Income: $80,998 • Businesses: 49,392 • Population Density (#/sq miles): 1,520 • Unemployment Rate (%): 3.6 • $100K+ Households (%): 41.6 New Haven, CT • Population: 860,000 • Median HH Income: $62,420 • Businesses: 36,800 • Population Density (#/sq miles): 1,426 • Unemployment Rate (%): 4.1 • $100K+ Households (%): 29.5 Burlington, VT • Population: 218,000 • Median HH Income: $65,925 • Businesses: 10,846 • Population Density (#/sq miles): 173 • Unemployment Rate (%): 2.4 • $100K+ Households (%): 28.3 Notes: The current national unemployment rate is 4.8% The current national population density is 91 (#/sq miles) Source: SNL Financial, US Census data The population densities of NYC, Boston, Bridgeport and New Haven MSAs are each over
ten times the national average |
 8 Operate in Large & Attractive Northeast Markets People’s United’s Franchise Metrics MSA Rank (Out of 933 MSAs Nationwide) 75% of PBCT’s deposits are in its top 5 MSAs, which are some of the most densely populated and wealthy markets in the U.S. Source: SNL Financial; FDIC data as of June 30, 2016 1. Excludes deposits from trust institutions and branches with over $750 million deposits;
excludes branches and deposits located outside each MSA
2. Rank weighted by percentage of franchise deposits Market Size Population Median % Households People's United Top 5 MSAs Total Deposits Market % Deposit Deposits % of Density Household with $200k+ ($ in millions) Rank Market Share ($ in millions) Franchise (# / sq. mile) Income Income Bridgeport-Stamford-Norwalk, CT $40,283 1 17% $6,860 28% 6 8 2 New York-Newark-Jersey City, NY-NJ-PA 691,368 24 1% 3,534 15% 2 35 12 Boston-Cambridge-Newton, MA-NH 150,184 8 2% 3,120 13% 8 13 9 Hartford-West Hartford-East Hartford, CT 30,010 5 8% 2,478 10% 20 26 23 New Haven-Milford, CT 20,106 4 11% 2,309 9% 7 60 41 Top 5 MSAs $931,951 – 2% $18,301 75% – – – Weighted Average Rank 2 8 23 13 Rank / Nationwide MSAs (933 MSAs) 0.8% 2.5% 1.4% 1 |
 9 Total Loan Portfolio: $29.7 Billion At December 31, 2016 ($ in billions) Connecticut $7.8 / 26% Massachusetts $5.4 / 18% New Hampshire $1.4 / 5% Other $5.2 / 18% New York $5.7 / 19% Vermont $1.8 / 6% New Jersey $1.5 / 5% Maine $0.9 / 3% Operate in Large & Attractive Northeast Markets Excluding equipment finance loans, ~91% of PBCT’s loan portfolio is within the Northeast |
   10 Source: SNL Financial; FDIC data as of June 30, 2016; excludes trust institutions; excludes non-retail branches
Notes: PBCT branch count updated as of December 31, 2016 Operate in Large & Attractive Northeast Markets Connecticut Massachusetts Vermont New York New Hampshire Maine 4 th in deposit market share in New England # 1 in Fairfield County, CT., 64 branches, ~$11 billion in deposits, ~ 24% market share
Strong deposit market positions
Branches $BN % 1 Bank of America 138 30.0 23.8 2 People's United 149 16.5 13.1 3 Webster 118 16.3 12.9 4 Wells Fargo 76 9.0 7.1 5 TD Bank 71 6.8 5.4 6 JP Morgan Chase 50 5.5 4.4 7 Citi 14 4.2 3.3 8 KeyCorp 75 4.1 3.3 9 Liberty 55 3.5 2.7 10 United Financial 32 3.2 2.5 Branches $BN % 1 JP Morgan Chase 754 536.2 37.6 2 HSBC 146 114.7 8.0 3 Citi 243 88.1 6.2 4 Bank of America 303 83.7 5.9 5 M&T 282 44.9 3.2 6 Capital One 229 44.8 3.1 7 KeyCorp 403 36.1 2.5 8 TD Bank 262 33.7 2.4 9 Signature 30 29.5 2.1 10 Wells Fargo 85 23.3 1.6 29 People's United 97 3.4 0.3 Branches $BN % 1 People's United 40 2.9 23.0 2 TD Bank 32 2.5 20.1 3 Merchants 31 1.4 10.8 4 KeyCorp 12 0.8 6.5 5 Citizens 20 0.8 6.4 6 Northfield 13 0.6 4.9 7 Union 12 0.5 3.8 8 Community 12 0.5 3.7 9 Passumpsic 6 0.4 2.9 10 Mascoma 10 0.3 2.8 Branches $BN % 1 Citizens 72 7.9 24.8 2 TD Bank 70 6.7 21.0 3 Bank of America 23 4.6 14.3 4 People's United 26 1.5 4.7 5 NH Mutual 19 1.2 3.8 6 BNH Financial 25 1.2 3.6 7 Santander 18 1.0 3.0 8 Lake Sunapee 21 0.9 2.7 9 Mascoma 17 0.9 2.7 10 Northway 17 0.7 2.4 Branches $BN % 1 TD Bank 48 3.5 12.9 2 KeyCorp 50 3.4 12.5 3 Camden National 63 2.8 10.4 4 Bangor Bancorp 56 2.5 9.2 5 Bank of America 17 1.8 6.7 6 First Bancorp 16 1.1 4.3 7 People's United 27 1.1 4.2 8 Bar Harbor 14 1.0 3.7 9 Machias Bancorp 18 1.0 3.6 10 Norway 24 0.9 3.3 Branches $BN % 1 Bank of America 230 67.8 27.2 2 Citizens 245 31.3 12.6 3 Santander 221 18.3 7.3 4 TD Bank 144 13.1 5.3 5 Eastern Bank 89 8.0 3.2 6 Independent Bank 84 6.2 2.5 7 First Republic 4 5.6 2.3 8 Boston Private 11 3.9 1.6 9 Middlesex 32 3.8 1.5 10 People's United 48 3.6 1.4 |
 11 Commitment to Relationship-Based Banking Long history of focusing on relationship management at the local level… • Long-term relationships with customers • Customers relationships are with local management • Single point of contact with customers – break down silos to present full suite of products & services • Senior management frequently interacts with customers • Reputation and word-of-mouth referrals often drive new business • Broad distribution: 387 branches across six states, 593 ATMs, online and mobile banking
• Call center operations locally located in Bridgeport, CT and Burlington, VT |
 12 Breadth of Products & Services Commercial Banking Retail Banking Wealth Management …while providing the same full breadth of solutions as larger banks • Commercial Lending: commercial finance, real estate financing, equipment loans & leasing, asset
based lending, mortgage warehouse lending
• Deposit Products: checking accounts, savings and money market accounts
• Treasury Management: cash management services, Online banking eTreasury+, ACH services, lockbox
services, remote deposit capture, merchant card processing, payroll services, fraud
protection services, liquidity and investment solutions
• Specialty Services: government banking, healthcare & non-profit banking, interest rate risk management, international services, business aircraft finance • Insurance: commercial coverage, employee benefits, bonding, risk management services, specialized
industry insurance
• Retail Lending: residential mortgages, home equity loans and lines of credit, personal
loans •
Deposit Products: checking accounts,
savings and money market accounts •
Services: mobile banking, online
banking, credit cards •
Wealth Services & Solutions:
financial planning, trust & estate solutions, investment management, private banking, self-directed investing, retirement plan services, institutional trust services |
 13 Total Loan Portfolio: $29.7 Billion At December 31, 2016 Commercial $21.4 Billion / 72% Breadth of Products & Services Retail $8.3 Billion / 28% |
 Packaging 4% Service 3% Other 5% Health Services 2% Manufact. 5% Transp. / Utility 3% Arts/Ent./Rec. 2% Construction 2% Information 1% Public Admin. 1% Hosp. & Entertain. 5% Wholesale Dist. 5% Other 1% 14 Commercial Real Estate $10.3 Billion / 35% of Total Portfolio (At December 31, 2016) Residential (Multi-Family) 37% Commercial & Industrial $8.1 Billion / 27% of Total Portfolio Equipment Financing $3.0 Billion / 10% of Total Portfolio Commercial Loans: $21.4 Billion / 72% of Total Portfolio
($ in billions) ($ in billions) ($ in billions) Retail 25% Office Buildings 21% Health care 1% Self Storage 2% Special Use 2% Industrial / Manufacturing 6% Finance & Insurance 19% Service 17% Manufacturing 14% Wholesale Dist. 14% Health 11% Retail Sales 9% Transportation / Utility 36% Construction 14% Finance, Insurance & Real Estate 14% Waste 6% Printing 6% Breadth of Products & Services Broadly diversified commercial loan portfolio Real Estate 7% |
 15 Residential Mortgage $6.2 Billion / 21% of Total Portfolio (At December 31, 2016) Retail Loans: $8.3 Billion / 28% of Total Portfolio
($ in billions) ($ in billions) Home Equity and Other Consumer $2.1 Billion / 7% of Total Portfolio 2016 originated weighted average LTV of 68% 2016 originated weighted average FICO score of 763 Hybrid ARMs represent 89% of the portfolio 2016 originated weighted average CLTV of 59% 2016 originated weighted average FICO score of 766 61% of originations during last 3 years are in a first lien position New York $0.6 / 10% Vermont $0.3 / 5% Massachusetts $1.8 / 28% Connecticut $2.7 / 44% Connecticut $1.3 / 59% Vermont $0.2 / 10% New York $0.3 / 13% Massachusetts $0.2 / 7% New Hampshire $0.2 / 3% Maine $0.1 / 2% New Jersey $0.5 / 8% New Hampshire $0.1 / 6% Maine $0.1 / 5% Breadth of Products & Services |
 16 Conservative & Well-Defined Underwriting Culture • Credit culture and underwriting standards Cash flow – deal specific and global Collateral / limited unsecured exposure with equity investment requirements and guarantees
No speculative real estate projects
• Credit structure includes meaningful covenants, appropriate LTVs and monitored advance rates
• Industry knowledge and expertise (i.e. basic industries and property types) • Seasoned relationship managers with considerable local market knowledge • Experienced senior credit officers (SCO) average 25+ years of commercial banking experience
• Approval authority Local, regional and corporate credit committee structure >$25 million also requires Executive Risk Oversight Committee approval • Due diligence begins prior to the issuance of a proposal (market manager & SCO) and independent credit
associates in Risk Management are utilized
• Credit analyst / relationship manager complete detailed loan submission • Stress test cash flow for interest rate sensitivities, vacancy and rental rates • Independent field exams and appraisal review Commercial Credit Culture & Approval Process |
 17 Conservative & Well-Defined Underwriting Culture Conservative underwriting is a hallmark of People’s United Average Annual Net Charge-Offs / Average Loans Peer Group Comparison 2007-2016 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 0.18% PBCT Median, excluding PBCT = 0.90% Source: SNL Financial |
 18 Deep Focus on Expense Management • EMOC has been fully operational since November 2011 Committee comprised of the CEO, CFO, Chief Administrative Officer and Chief HR Officer
• EMOC oversees: Non-interest expense management and implements strategies to attain targeted goals
Revenue initiatives that require expenditures and conducts periodic progress
reviews •
Spending requests above $25,000 (or annual spending with a vendor of $75,000 or more) are
submitted for approval by business owners and/or finance divisional
resources For the purpose of spending limit calculation, all common
expenditures are aggregated for approval purposes •
Staffing models, staffing replacements and additions for mid-level positions and
above require approval by the Committee
Expense Management Oversight Committee (EMOC)
Proactive expense management approach |
 19 Deep Focus on Expense Management • People’s United has proactively managed expenses while also making significant investments in:
Talent and systems amidst a regulatory environment of heightened
expectations Revenue and deposit gathering initiatives
Improving customer experiences via enhanced delivery of products and
services Non-Interest Expense
1 $208 $218 $212 $214 $217 $217 $213 $218 $216 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 Continued execution of strong cost controls ($ in millions) 1 Excludes merger-related expenses of $3.1 million in 3Q’16 and $1.6 million in 4Q’16 |
 20 • Bolstering commercial banking presence in Massachusetts and New York • Building large-corporate and government banking productivity • Continuing to leverage investment in asset-based lending • Focusing on deposit gathering capabilities • Growing insurance and wealth management fee income • Increasing momentum in other fee income businesses Delivering interest rate swaps and foreign exchange products to corporate customers
Expanding international trade finance
Growing commercial banking lending fees
Investing in competitive cash management products
These significant opportunities expected to provide earnings growth for years to
come Significant Opportunities
Continuing to grow in our expanded footprint, while deepening presence across heritage
markets |
 21 Building the Franchise for the Long-Term Committed to delivering value to both customers and shareholders • Increase focus on relationship profitability Continue to build deep, multi-product relationships Deposit gathering remains a key focus and is reflected in incentive structure • Maintain pristine asset quality • Tightly control expenses while investing in key infrastructure • Maintain asset sensitivity to position People’s United for eventual increase in
interest rates |
 Fourth Quarter and Full Year 2016 Results |
 23 Full Year 2016 Overview • Net income of $281 million, an increase of $20 million or 8% – Earnings per common share of $0.92, an increase of $0.06 or 7% • Net interest income 1 of $972 million, an increase of $40 million or 4% • Net interest margin of 2.80%, a decrease of 8 basis points • Loan growth of $1.3 billion, 5% growth rate • Deposit growth of $1.4 billion, 5% growth rate • Non-interest income of $343 million, consistent with prior year (adj. for the 2015 gain on sale of payroll services business) • Non-interest expense of $869 million, an increase of $8 million or 1% – Includes merger-related costs of $5 million • Efficiency ratio of 60.5%, an improvement of 100 basis points • Net loan charge-offs of 0.06%, an improvement of 2 basis points (Comparisons versus full year 2015) 1 Net interest income on a fully taxable equivalent basis was $1.0 billion, an increase of 5%. |
 24 End of Period Balances Growing a broadly diversified portfolio $21.7 $24.4 $26.6 $28.4 $29.7 ($ in billions) $20.4 $7.2 $7.3 $8.9 $9.4 $10.0 $10.3 $5.4 $6.0 $6.3 $7.2 $7.7 $8.1 $2.0 $2.3 $2.6 $2.9 $3.0 $3.0 $3.6 $3.9 $4.4 $4.9 $5.5 $6.2 $2.2 $2.2 $2.2 $2.2 $2.2 $2.1 2011 2012 2013 2014 2015 2016 Commercial Real Estate Commercial & Industrial Equipment Financing Residential Mortgage Consumer Loans |
 Net
Interest Income 25
Net interest income has increased as loan growth has outweighed
significant net interest margin compression 5-Year CAGR: +1% (Ex. Accretion: +7%) ($ in millions) $913 $929 $889 $912 $932 $972 Net Interest Income $655 $722 $762 $831 $877 $933 $258 $207 $127 $81 $55 $39 2011 2012 2013 2014 2015 2016 NII, Ex. Accretion Accretion |
 Deposits 26 End of Period Balances $21.6 $22.6 $26.1 $28.4 $29.9 ($ in billions) $20.8 Emphasizing deposit gathering across the franchise $8.1 $8.7 $9.2 $11.4 $13.2 $14.3 $4.5 $5.1 $5.3 $5.6 $6.2 $6.7 $5.3 $4.7 $4.4 $5.2 $4.8 $4.5 $2.9 $3.3 $3.7 $3.9 $4.2 $4.4 2011 2012 2013 2014 2015 2016 Time Savings Interest-Bearing Checking & Money Market Non-Interest-Bearing |
 27 ($ in millions) $314 $320 $342 $330 $343 $343 Non-Interest Income 1 Non-Interest Income Strengthening fee income organically and via acquisition, despite industry-wide headwinds
related to bank service charges
1 Excludes gains of $9.2 million in 2015 (payroll services sale) and $20.6 million in 2014 (merchant services joint venture).
$196 $212 $235 $224 $242 $245 2011 2012 2013 2014 2015 2016 Non-Interest Income ex. Bank Service Charges Bank Service Charges $118 $108 $107 $106 $101 $98 |
 28 Non-Interest Expenses Controlling costs while still making significant investments in the franchise Non-Interest Expenses (excl. merger-related costs) ($ in millions) Merger-related costs were $42.9 million in 2011 and $4.7 million in 2016. $829 $831 $839 $842 $861 $864 2011 2012 2013 2014 2015 2016 |
 29 Profitability Continuing to enhance profitability Earnings Per Common Share $0.55 $0.72 $0.74 $0.84 $0.86 $0.92 2011 2012 2013 2014 2015 2016 |
 30 Full Year 2016: Goals vs. Actual Results Goals 1 Actual Results Loans Growth range: 4% - 6% 5% Deposits Growth range: 4% - 6% 5% Net Interest Income 2 Growth range: 5% - 7% 4% Net Interest Margin 2.75% - 2.85% 2.80% Non-Interest Income 3 Maintain non-interest income levels $343 million in both 2016 & 2015 Non-Interest Expense
(ex. merger-related costs)
$860 million - $870 million $864 million Credit Maintain excellent credit quality Provision in the range of $40 million - $50 million Excellent credit quality Provision: $37 million Capital Maintain strong capital levels TCE / TA in the range of 7.0% - 7.2% Expect preferred offering in second half of year Strong capital levels TCE / TA: 7.2% Completed preferred offering in 4 th quarter 1 Goals updated on July 21, 2016. 2 Net interest income on a fully taxable equivalent basis was $1.0 billion, an increase of 5%.
3 Adjusted for the 2015 gain on sale of payroll services business. |
 31 Full Year 2017 Goals 1 Loans Deposits Net Interest Income Net Interest Margin Non-Interest Income Non-Interest Expense (Excludes Merger-Related Costs) Credit Capital Growth in the range of 4% - 6% Growth in the range of 5% - 7% Range of 2.80% - 2.90% Assumes one 25 basis point rate increase in fed funds (mid-year 2017) Essentially no change to current slope of the yield curve Growth in the range of 5% - 7% Range of $895 million - $915 million Maintain excellent credit quality Provision in the range of $40 million - $50 million Maintain strong capital levels Tier 1 leverage ratio in the range of 8.0% - 8.5% Common equity tier 1 capital ratio in the range of 9.5% - 9.7% Growth in the range of 5% - 7% 1 Goals reflect full year of Gerstein Fisher results (acquisition closed November 2016),
but does not include the pending acquisition of Suffolk Bancorp.
|
 32 Fourth Quarter 2016 Overview • Net income of $75.9 million, increases of 3% and 7% from the 3 rd quarter and prior year quarter Earnings per common share of $0.24, consistent with the 3 rd quarter and up $0.01 from prior year quarter • Net interest income 1 of $247 million, an increase of $2 million or 1% • Net interest margin of 2.78%, a decrease of 2 basis points • Loan growth of $377 million, 5% annualized growth rate • Deposit growth of $205 million, 3% annualized growth rate • Non-interest income of $84 million, a decrease of $7 million or 7% • Non-interest expense of $217 million, a decrease of $4 million or 2% - Includes $1.6 million of merger-related costs compared to $3.1 million in the 3 rd quarter • Efficiency ratio of 59.3%, an improvement of 60 basis points • Net loan charge-offs of 0.06%, an increase of 2 basis points (Comparisons versus third quarter 2016, unless noted otherwise) 1 Net interest income on a fully taxable equivalent basis was $255 million, an increase of <1%. |
 3Q
2016 Investments
Originated Loans Deposits Acquired Loans Borrowings 4Q 2016 33 Net Interest Income 1 ($ in millions) Linked Quarter Change $245.3 $246.8 ($1.2) $2.7 1 Net interest income on a fully taxable equivalent basis for 3Q 2016 and 4Q 2016 was $254 million and $255 million, respectively.
$0.3 $0.1 ($0.4) |
 34 Net Interest Margin 3Q 2016 Loan Yield & Mix Borrowings Investments 4Q 2016 Linked Quarter Change 2.80% 2.78% (1 bp) 2 bps (3 bps) |
 35 Loans ($ in millions, end of period balances) Sep. 30, 2016 Commercial Retail Acquired Dec. 31, 2016 Linked Quarter Change $238 $29,368 $29,745 Annualized linked quarter change: +5% ($35) $174 |
 36 Deposits $14,056 $14,260 $6,522 $6,661 $4,687 $4,542 $4,391 $4,398 Sep. 30, 2016 Interest-Bearing Checking & Money Market Non-Interest Bearing Savings Time Dec. 31, 2016 Linked Quarter Change ($ in millions, end of period balances) Annualized linked quarter change: +3% $29,861 $204 $29,656 $7 $139 ($145) Interest-Bearing Checking & Money Market Non-Interest-Bearing Time Savings |
 37 Non-Interest Income ($ in millions) 3Q 2016 Insurance Revenue Operating Lease Income Bank Service Charges Net Security Losses Gain from Sale of Ownership Interest in Privately-Held Investment Investment Management Fees Other 4Q 2016 $90.8 $84.2 Linked Quarter Change $6.3 ($3.0) ($1.7) ($1.1) ($6.0) $2.6 ($3.7) |
 38 Non-Interest Expense ($ in millions) 3Q 2016 Compensation & Benefits Merger-Related Costs Operating Lease Expense Professional & Outside Services Regulatory Assessments Other 4Q 2016 ($2.8) $217.2 $221.4 Linked Quarter Change $0.5 ($1.5) ($1.4) $0.2 $0.8 |
 39 Efficiency Ratio 61.0% 62.7% 60.4% 59.9% 59.3% 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 61.8% Beginning with first quarter 2016 results, the Company no longer classifies expenses related to ordinary and recurring branch closures and severance as non-operating. In prior quarters, these expenses were excluded from the calculation of the Company’s efficiency ratio. For
comparison
purposes above, efficiency ratios for prior quarters also display what the metric would have been had these expenses been included. |
 40 Asset Quality Non-Performing Assets / Loans & REO (%) 1 1 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 Notes:
Source: SNL Financial and Company filings.
Top 50 Banks represents the largest 50 banks by total assets in each respective
quarter. Net Charge-Offs / Average Loans (%)
2 2 Ex. acquired loan charge-offs, PBCT’s charge-off ratio was 0.05%, 0.03%, 0.07%, 0.08%, & 0.09% in 4Q 2016, 3Q 2016, 2Q
2016, 1Q 2016 & 4Q 2015, respectively PBCT
Peer Group (Median) Top 50 Banks (Median) PBCT Peer Group (Median) Top 50 Banks (Median) 0.66 0.68 0.64 0.63 0.57 1.32 1.79 1.54 1.62 1.21 1.38 1.36 1.25 0.5 1.0 1.5 2.0 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 0.09 0.09 0.07 0.04 0.06 0.17 0.19 0.22 0.22 0.18 0.24 0.23 0.22 0.0 0.1 0.2 0.3 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 |
 41 Returns 0.75% 0.65% 0.70% 0.73% 0.75% 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 10.7% 9.4% 10.1% 10.7% 10.7% 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Return on Average Assets Return on Average Tangible Common Equity |
 42 Capital Ratios 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) after-tax net unrealized gains (losses) on securities transferred to held to maturity; (iii) goodwill and other acquisition-related intangibles; and (iv) 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%. Dec. 31, 2015 Mar. 31, 2016 Jun. 30, 2016 Sep. 30, 2016 Dec. 31, 2016 People’s United Financial, Inc. Tang. Com. Equity/Tang. Assets 7.2% 7.3% 7.2% 7.2% 7.2% Tier 1 Leverage 1, 5 8.0% 7.9% 7.8% 7.7% 8.4% Common Equity Tier 1 Capital 2, 5 9.8% 9.7% 9.7% 9.7% 9.8% Tier 1 Risk-Based Capital 3, 5 9.8% 9.7% 9.7% 9.7% 10.6% Total Risk-Based Capital 4, 5 11.7% 11.5% 11.5% 11.5% 12.4% People’s United Bank, N.A. Tier 1 Leverage 1, 5 8.4% 8.8% 8.7% 8.6% 8.9% Common Equity Tier 1 Capital 2, 5 10.2% 10.9% 10.8% 10.8% 11.2% Tier 1 Risk-Based Capital 3, 5 10.2% 10.9% 10.8% 10.8% 11.2% Total Risk-Based Capital 4, 5 12.6% 12.9% 12.8% 12.8% 13.3% |
 43 Interest Rate Risk Profile Net Interest Income (NII) Sensitivity 1 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.
-5.0% 4.0% 7.3% 10.1% 12.8% 4.5% 7.9% 10.7% 13.3% Down 75 Up 100 Up 200 Up 300 Up 400 -2.6% 1.7% 3.3% -3.4% 2.3% 4.3% 1.9% 4.0% -5.1% 2.7% 4.6% Short End -75 Short End +100 Short End +200 Long End -100 Long End +100 Long End +200 Immediate Parallel Shock Est. Change in NII Yield Curve Twist 1 Est. Change in NII Dec. 31, 2016 Sep. 30, 2016 |
 Appendix |
 45 Asset Quality Originated Portfolio Coverage Detail as of December 31, 2016 0.95% 0.30% 0.77% Commercial Retail Total ALLLs / Loans NPLs / Loans ALLLs / NPLs 0.49% 0.55% 0.51% Commercial Retail Total 193% 54% 151% Commercial Retail Total Note – ALLLs: Commercial: $199 million, Retail: $24 million, Total: $223 million. |
 Agency
MBS - HTM
$0.5 / 8% Bonds, Notes & Debentures $0.9 / 13% 46 Securities Portfolio Detail Note: Duration of the securities portfolio is ~4.7 years Securities portfolio does not contain CLOs, CDOs, trust preferred, or private-label mortgage-backed securities
Held to maturity (HTM) securities reported on an amortized cost basis (book
value). Available for sale (AFS) securities reported at fair
value Agency MBS &
Agency CMOs comprised of 10-yr & 15-yr collateral constitute ~60% of the
portfolio. Municipal bond portfolio has an underlying weighted average
credit rating above AA .
Securities Portfolio: $6.7 Billion
At December 31, 2016 ($ in billions) FHLB & Federal Reserve Bank Stock $0.3 / 5% Agency MBS - AFS $2.9 / 43% Agency CMO’s $0.6 / 9% Municipal - HTM $1.5 / 22% |
 Customer Repurchase Agreements $0.3 / 1% 47 Balance Sheet Funding 87% funded by deposits, customer repurchase agreements and stockholders’ equity
Balance Sheet Funding: $40.6 Billion
At December 31, 2016 ($ in billions) Retail Deposits $19.6 / 48% Commercial Deposits $10.3 / 25% Stockholders’ Equity $5.1 / 13% Fed Funds & FHLB Advances $3.7 / 9% Subordinated Borrowings & Senior Notes $1.0 / 2% Other Liabilities $0.6 / 2% |
 48 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 |
 49 Non-GAAP Financial Measures and Reconciliation to GAAP In addition to evaluating People’s United Financial Inc. ("People's United") results of operations in
accordance with U.S. generally accepted accounting principles (“GAAP”),
management routinely supplements its evaluation with an analysis of
certain non-GAAP financial measures, such as the efficiency and
tangible common equity ratios, tangible book value per share and operating earnings metrics. Management believes these non-GAAP financial measures provide information useful to
investors in understanding People’s United’s underlying operating performance
and trends, and facilitates comparisons with the performance of other
financial institutions. Further, the efficiency ratio and operating
earnings metrics are used by management in its assessment of financial performance, including non-interest expense control, while the tangible common equity ratio and tangible book value
per share are used to analyze the relative strength of People’s United’s
capital position. The efficiency ratio, which represents an approximate measure of the cost required by
People’s United to generate a dollar of revenue, is the ratio of (i)
total non-interest expense (excluding operating lease expense,
goodwill impairment charges, amortization of other acquisition-related intangible assets, losses on real estate assets and non-recurring expenses, which are also excluded in arriving at operating
non-interest expense) (the numerator) to (ii) net interest income on a fully
taxable equivalent ("FTE") basis plus total non-interest
income (including the FTE adjustment on bank-owned life insurance
("BOLI") income, the netting of operating lease expense and excluding gains and
losses on sales of assets other than residential mortgage loans and
acquired loans, and non-recurring income) (the denominator).
People’s United generally considers an item of income or expense to be non-recurring if it is not similar to an item of income or expense of a type incurred within the last two years and is not
similar to an item of income or expense of a type reasonably expected to be incurred
within the following two years. |
 50 Non-GAAP Financial Measures and Reconciliation to GAAP Operating earnings exclude from net income available to common shareholders those items that
management considers to be of such a non-recurring or infrequent nature that, by
excluding such items (net of income taxes), People’s United’s
results can be measured and assessed on a more consistent basis from
period to period. Items excluded from operating earnings, which include, but are not limited to: (i) non-recurring gains/losses; (ii) merger-related expenses, including acquisition integration and
other costs; (iii) writedowns of banking house assets and related lease termination
costs; (iv) severance- related costs; and (v) charges related to
executive-level management separation costs, are generally also
excluded when calculating the efficiency ratio. Effective with the quarter ended March 31, 2016, recurring writedowns of banking house assets and certain severance-related costs are no longer
considered to be non-operating expenses. Operating earnings per common share is
derived by determining the per share impact of the respective adjustments
to arrive at operating earnings and adding (subtracting) such amounts to
(from) earnings per common share, as reported. Operating return on
average assets is calculated by dividing operating earnings (annualized) by average total assets. Operating return on average tangible common equity is calculated by dividing operating earnings
(annualized) by average tangible common equity. The operating dividend payout ratio is
calculated by dividing dividends paid by operating earnings for the
respective period. The tangible common equity ratio is the ratio of (i) tangible common equity (total stockholders’ equity
less preferred stock, goodwill and other acquisition-related intangible assets)
(the numerator) to (ii) tangible assets (total assets less goodwill and
other acquisition-related intangible assets) (the denominator).
Tangible book value per share is calculated by dividing tangible common equity by common shares (total common shares issued, less common shares classified as treasury shares and
unallocated Employee Stock Ownership Plan ("ESOP") common shares). In light of diversity in presentation among financial institutions, the methodologies used by People’s
United for determining the non-GAAP financial measures discussed above may differ
from those used by other financial institutions.
|
 For
more information, investors may contact: Andrew S. Hersom
(203) 338-4581 andrew.hersom@ peoples.com NASDAQ: PBCT |