People's United Financial (PBCT) 8-K Other Events

Second Quarter 2010

Earnings Review

and

Acquisition Announcements

July 16, 2010

Exhibit 99.1

1

Certain

comments

made

in

the

course

of

this

presentation

by

People's

United

Financial

are

forward-

looking

in

nature.

These

include

all

statements

about

People's

United

Financial's

operating

results

or

financial

position

for

periods

ending

or

on

dates

occurring

after

June

30,

2010

and

usually

use

words

such

as

"expect",

"anticipate",

"believe",

and

similar

expressions.

These

comments

represent

management's

current

beliefs,

based

upon

information

available

to

it

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)

failure

of

the

parties

to

satisfy

the

closing

conditions

in

either

merger

agreement

in

a

timely

manner

or

at

all;

(2)

failure

of

the

shareholders

of

Smithtown

Bancorp

or

LSB

Corporation

to

approve

the

applicable

merger

agreement;

(3)

failure

to

obtain

governmental

approvals

for

one

or

both

mergers;

(4)

disruptions

to

the

parties’

businesses

as

a

result

of

the

announcement

and

pendency

of

one

or

both

mergers;

(5)

costs

or

difficulties

related

to

the

integration

of

the

businesses

following

one

or

both

mergers;

(6)

changes

in

general,

national

or

regional

economic

conditions;

(7)

the

risk

that

the

anticipated

benefits,

cost

savings

and

any

other

savings

from

either

transaction

may

not

be

fully

realized

or

may

take

longer

than

expected

to

realize

(8)

changes

in

loan

default

and

charge-off

rates;

(9)

reductions

in

deposit

levels

necessitating

increased

borrowings

to

fund

loans

and

investments;

(10)

changes

in

interest

rates

or

credit

availability;

(11)

possible

changes

in

regulation

resulting

from

or

relating

to

the

pending

financial

reform

legislation;

(12)

People’s

United’s

success

in

addressing

management

succession

issues

in

a

timely

and

effective

manner;

(13)

changes

in

levels

of

income

and

expense

in

noninterest

income

and

expense

related

activities;

(14)

competition

and

its

effect

on

pricing,

spending,

third-party

relationships

and

revenues.

Forward Looking Statement

2

Agenda

Second Quarter 2010 Results

Acquisition Announcements

Smithtown Bancorp (SMTB)

LSB Corp. (LSBX)

Q&A

3

Operating results reflect NIM improvement

partially offset by higher net charge-offs

Net

income

of

$16.0

million,

or

$0.04

per

share

Operating

income

of

$31.8

million,

or

$0.09

per

share

excluding

former

CEO

separation

costs,

merger-related

costs

and

system

conversion

costs

Net

interest

margin

of

3.68%;

up

21

bps

from

Q1

2010

Net

charge-offs

of

average

loans

increased

to

0.46%

from

0.26%

in Q1 2010

Both

non-interest

income

and

non-interest

expense

reflect

the

acquisitions

of

Financial

Federal

and

Butler

Bank

Second Quarter 2010 Results

Overview

4

Systems

conversion

for

Northern

New

England

franchise

scheduled

to

take

place

this

weekend

Re-branding

Northern

New

England

franchise

underway

–

all

branches

will

now

operate

under

People’s

United

name

Negotiated

leases

for

2

branches

in

downtown

Boston

–

Prudential

Center

and

Financial

District

Repurchased

$52

million

of

stock

(3.7

million

shares

at

an

average

price

of $13.98)

Initiatives

Operational milestones and

changes in approach to capital deployment

5

The core margin reflects

the benefit of the

Financial Federal (FIF)

acquisition completed in 

February 2010.

Second Quarter 2010 Results

Net Interest Margin

.

2Q09

3Q09

4Q09

1Q10

2Q10

3.58%

3.65%

3.65%

3.96%

4.16%

3.12%

3.19%

3.19%

3.47%

3.68%

0.25%

0.25%

0.25%

0.25%

0.25%

6

2006-2010

2.01

1.74

5.15

4.95

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Q2

2006

Q3

2006

Q4

2006

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

PBCT

Peer Group Mean

Top 50 Banks by Assets

Second Quarter 2010 Results

NPA / Loans & REO* (%)

*

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

our

estimate

of

acquisition-date

fair

value

and/or

the

existence

of

an

FDIC

loss

sharing

agreement

7

Commercial & Equipment Financing

Historical Credit Performance

NPLs

* (%)

NCOs (%)

Commentary

•

Portfolio remains well

diversified

•

Continue to see growth in core

middle market segment

•

Core portfolio is self-

originated, with rigorous

underwriting and ongoing

credit administration

•

Equipment Financing focused

on mission critical equipment

with good resale values

1.54

1.29

2.06

2.55

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

PBCT

Peer Group Mean

Top 50 Banks

0.92

0.15

1.40

1.97

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

PBCT

Peer Group Mean

Top 50 Banks

*

Excludes acquired non-performing loans

8

Commercial Real Estate Loans

Historical Credit Performance

Commentary

•

CRE portfolio totals $5.5BN

•

All CRE loans are underwritten

on a cash flow basis

•

Portfolio is well diversified

•

Loss content is limited

•

Strong CRE portfolio growth

opportunities continue to exist

NPLs

* (%)

NCOs (%)

1.23

1.21

3.29

4.03

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

PBCT

Peer Group Mean

Top 50 Banks

0.35

0.43

1.08

1.37

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

PBCT

Peer Group Mean

Top 50 Banks

*

Excludes acquired non-performing loans

9

Residential Loans

Historical Credit Performance

NPLs

* (%)

NCOs (%)

Commentary

•

Resolution of NPLs

is limited

by a much slower foreclosure

process

•

Low LTV at origination

•

83% of NPLs

have LTVs

<90%;

should insure continued low

loss content

•

Given attractive spreads, we

began portfolioing

some

residential mortgages this

quarter

3.40

2.70

3.01

3.45

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

PBCT

Peer Group Mean

Top 50 Banks

0.07

0.01

1.07

1.90

0.00

0.50

1.00

1.50

2.00

2.50

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

PBCT

Peer Group Mean

Top 50 Banks

*

Excludes acquired non-performing loans

10

Home Equity

Historical Credit Performance

Commentary

NPLs

* (%)

NCOs (%)

0.03

0.17

1.37

1.93

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

PBCT

Peer Group Mean

Top 50 Banks

•

As

of

Q2

2010,

Home

Equity

loans

stood

at

$2.0BN,

flat

from

Q1 2010 levels

•

Q2

2010

utilization

rate

was

48.2%,

flat

with

Q1

2010

and

Q4

2009

•

Asset

quality

remains

high,

as

measured

by

low

NPLs

and

NCOs

•

Home

Equity

remains

an

important

part

of

our

retail

relationships

0.44

0.35

0.91

1.33

0.00

0.50

1.00

1.50

2.00

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

PBCT

Peer Group Mean

Top 50 Banks

*

Excludes

acquired

non-performing

loans

11

2006-2010

0.46

0.26

1.60

2.40

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Q1

2006

Q2

2006

Q3

2006

Q4

2006

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

PBCT

Peer Group Mean

Top 50 Banks

Second Quarter 2010 Results

Net Charge-Offs / Avg. Loans (%)

12

2006-2010

7.5

6.4

33.6

32.1

0

5

10

15

20

25

30

35

40

Q1

2006

Q2

2006

Q3

2006

Q4

2006

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

PBCT

Peer Group Mean

Top 50 Banks

Second Quarter 2010 Results

NPAs* / (Tangible Equity + LLR)* (%)

*

Non-performing

assets

exclude

acquired

non-performing

loans

as

risk

of

loss

has

been

considered

by

virtue

of

our

estimate

of

acquisition-date

fair

value

and/or

the

existence

of

an

FDIC

loss

sharing

agreement

People’s United Financial

Acquires

Smithtown Bancorp and LSB Corp.

14

Expanding Geographic Footprint

Acquisition Announcements: Smithtown Bancorp (SMTB) and LSB Corp. (LSBX)

Source: SNL Financial

PBCT

SMTB

LSBX

De Novo Branches

15

7

30

Branches

807

2,430

Assets ($MM)

544

2,041

Loans ($MM)

504

1,873

Deposits ($MM)

10

42

ATMs

LSB Corp. *

Smithtown Bancorp *

Largest commercial bank

headquartered on Long Island, NY

operating as Bank of Smithtown

High quality branch network

Commercial bank headquartered in

North Andover, MA

operating as RiverBank

Operates in attractive markets

north of Boston

Description

Business Profiles

* Financial data as of March 31, 2010

16

Strategic Rationale

Expansion into densely populated, contiguous markets

Expansion into attractive Long Island market

Increases presence in Boston area

Continuing to build the premier regional bank in the Northeast

Provides platforms for increased market share in new markets

Significant opportunity to lower deposit costs to PBCT levels

Leverages excess capital

Exceeds financial hurdles

>15% IRR

Significant operating EPS accretion in year 1

17

Loan Portfolio Composition

Balance: $2.0 billion

Yield: 5.32%

NPAs

/ Loans + REO: 10.3%

LTM NCOs / Avg

Loans: 1.77%

Loan Mark: 10.4%

16%

24%

11%

47%

Construction &

Development

Multi-Family

C&I

2%

Commercial

Real Estate

1-4 Family

Smithtown Bancorp *

Consumer

<1%

Balance: $0.5 billion

Yield: 5.79%

NPAs

/ Loans + REO: 2.0%

LTM NCOs / Avg

Loans: 0.18%

Loan Mark: 3.0%

11%

6%

7%

30%

46%

Multi-Family

C&I

Commercial

Real Estate

1-4 Family

LSB Corp. *

Construction &

Development

Consumer

<1%

Completed extensive due diligence and loan file review

Conservative estimate of remaining cumulative losses

* Financial data as of March 31, 2010

18

Deposit Mix

Balance: $1.9 billion

Cost: 1.7%

8%

22%

20%

50%

Time Deposits

< $100K

Savings, Now

& MMDA

Smithtown Bancorp *

Noninterest-bearing

Balance: $0.5 billion

Cost: 1.8%

7%

23%

22%

48%

LSB Corp. *

Time Deposits

> $100K

Savings, Now

& MMDA

Noninterest-bearing

Time Deposits

< $100K

Time Deposits

> $100K

Analyzed deposit retention risks and evaluated retail distribution network

Mystery shopped all branches

Significant opportunity to lower deposit costs to PBCT levels over time

* Financial data as of March 31, 2010

19

Completed

Completed

Extensive due diligence

4

th

quarter 2010

4

th

quarter 2010

Expected close

LSB Corp.

Smithtown Bancorp

Smithtown shareholders

Regulatory approvals

50% stock* / 50% cash

$60 million

$4.00

LSB shareholders

Regulatory approvals

100% cash

$96 million

$21.00

Price per share

Approvals

Consideration

Deal value

Summary of Key Terms

*

People’s

United

current

intention

is

to

repurchase

the

shares

being

issued

in

the

transaction

20

9%

(4%)

Core deposit premium

30% or $3 million after-tax

15% or $5 million after-tax

Cost savings

N/A

Repurchase shares issued

Stock buyback

Identified but not assumed

Identified but not assumed

Revenue synergies

LSB Corp.

Smithtown Bancorp

10.4%

$25 -

$35 million after-tax

0.5x

3.0%

$5 million after-tax

1.5x

Price / tangible book

Loan mark

Merger-related

expenses

Summary of Key Metrics and Assumptions

21

Pro Forma Impact

>15%

>15%

Internal rate of return

~$0.10

~$0.01

~$0.09

2011 operating EPS

accretion

***

~$9.65

$10.14

Tangible book value per

share

30

1.9

2.0

2.4

SMTB*

~15.0%

18.0%

Tangible common equity

ratio

7

0.5

0.5

0.8

LSBX*

333

296

Branches

25.1

21.9

Assets ($Bn)

18.3

15.8

Deposits ($Bn)

17.6

15.2

Loans ($Bn)

PBCT

Pro Forma

**

*

Financial

data

as

of

March

31,

2010

**

Pro

forma

for

purchase

accounting

adjustments.

Assumes

stock

issued

to

SMTB

is

repurchased

***

Excludes

one-time

merger

related

expenses

22

Summary

Strong

balance

sheet

with

significant

capital

surplus

Pro

forma

Tangible

Capital

Ratio

of

15.0%

Beginning to execute on strong opportunity set

Actively

evaluating

acquisitions

-

pipeline

remains

robust

Driving

growth

and

profitability

improvements

within

the

core

business,

recently

completed

acquisitions

(FIF

and

Butler)

as

well

as

newly

announced

acquisitions

(SMTB, LSBX)

Constantly

considering

returns

available

via

share

repurchases

or

dividend

payouts

We are excited about growth and confident in our position

Appendix

24

Average Earning Assets

$ Inc/(Dec)

%

Commercial real estate

5,216

$      

5,137

$    

4,802

$    

79

$        

2

Commercial lending

4,852

4,250

3,809

602

14

Shared national credits

505

551

719

(46)

(8)

                  Total Commercial

10,573

9,938

9,330

635

6

Residential mortgage

2,537

2,507

2,989

30

1

Home equity and other loans

2,209

2,235

2,276

(26)

(1)

Total loans

15,319

14,680

14,595

639

4

Investments

3,630

3,789

3,615

(159)

(4)

Total earning assets

18,949

$    

18,469

$  

18,210

$  

480

$      

3

vs. Q1 2010

($'s in millions)

Q2 2010

Q1 2010

Q2 2009

25

Average Funding Mix

Loan portfolio is funded by core deposits

$ Inc/(Dec)

%

Deposits:

     Non-interest-bearing

3,357

$         

3,271

$         

3,192

$         

86

$              

3

     Savings/Now/PMA

7,818

7,414

6,600

404

5

     Time

4,529

4,517

5,094

12

0

Total deposits

15,704

15,202

14,886

502

3

Sub-debt / Other borrowings

348

371

351

(23)

(6)

Total funding liabilities

16,052

15,573

15,237

479

3

Stockholders' equity

5,458

5,275

5,162

183

3

Total Funding

21,510

$       

20,848

$       

20,399

$       

662

$            

3

Average deposit cost

0.74%

0.78%

1.26%

(0.04)%

(5.1)%

vs. Q1 2010

Q1 2010

Q2 2009

($'s in millions)

Q2 2010

26

Quarterly Income Statement

vs. Q1 2010

$ Fav(Unf)

% Inc/(Dec)

Net Interest Income

173.8

$     

159.6

$    

141.2

$    

14.2

$      

9

Provision for Loan Losses

17.8

9.5

14.0

(8.3)

87

Non-Interest Income

76.8

70.6

85.0

6.2

9

Non-interest Expense: Operating

186.6

176.9

167.8

(9.7)

(5)

Merger/One Time Expense

23.2

23.4

8.4

0.2

1

Total Non-Interest Expense

209.8

200.3

176.2

(9.5)

5

Income Before Taxes

23.0

20.4

36.0

2.6

13

Net Income

16.0

13.6

25.3

2.4

18

Earnings Per Share

0.04

0.04

0.08

-

-

Operating Earnings Per Share

0.09

0.08

0.07

0.01

13

($'s in millions, except EPS)

Q2 2010

Q1 2010

Q2 2009

27

Non-Interest Income

$ Inc/(Dec)

%

Investment management fees

8.6

$          

7.9

$          

8.6

$          

0.7

$        

9

Insurance revenue

6.3

7.3

6.8

(1.0)

(14)

Brokerage commissions

2.8

2.8

3.2

-

-

     Total wealth management

17.7

18.0

18.6

(0.3)

(2)

Bank service charges

32.9

31.2

32.9

1.7

5

Merchant services income

6.4

5.8

6.1

0.6

10

Net security gains

-

-

12.0

-

-

Operating lease income

4.2

3.8

3.6

0.4

11

Loan Penalties/Late Charges

5.1

3.0

1.1

2.1

70

Other non-interest income

10.5

8.8

10.7

1.7

19

     Total non-interest income

76.8

$        

70.6

$        

85.0

$        

6.2

$        

9

Total non-interest income ex security gains

76.8

$        

70.6

$        

73.0

$        

6.2

$        

9

vs. Q1 2010

($'s in millions)

Q2 2010

Q1 2010

Q2 2009

28

Non-Interest Expense

vs. Q1 2010

$ Inc

%

Compensation and benefits

92.6

$             

96.3

$           

86.6

$           

(3.7)

$        

(4)

Occupancy and equipment

28.5

29.8

26.3

(1.3)

(4)

Professional/outside service fees

20.8

13.6

11.7

7.2

53

Other non-interest expense

67.9

60.6

51.6

7.3

12

Total non-interest expense

209.8

$          

200.3

$         

176.2

$         

9.5

$         

5

Operating non-interest expense

186.6

$          

176.9

$         

167.8

$         

9.7

$         

5

Q2 2010

Q1 2010

Q2 2009

($'s in millions)

29

We

expect

that

interest

rates

will

not

rise

in

2010.

However,

we

do

expect

rates

to

rise

in

2011

and

beyond

Given

short

term

interest

rates

are

0-25bps,

we

are

not

taking

asymmetrical

risk

with

our

securities

book

For

Q4

2009

(the

most

recent

peer

data

available

at

time

of

Q1

2010

earnings)

we

were

~7-8x

as

asset

sensitive

as

the

peers,

now

we

are

~4x

as

asset

sensitive,

this

primarily

reflects

a

move

by

peers

to

better

position

themselves

for

rate

increases

For

every

100bps

increase

in

the

Fed

Funds

rate,

our

net

interest

income

will

increase

by

~$50MM

on

an

annualized

basis

Notes:

1.

Analysis

is

as

of

3/31/10

filings

2.

Data

as

of

3/31/10

SEC

filings,

where

exact

+100bps

shock

up

scenario

data

was

not

provided

PBCT

interpolated

based

on

data

disclosed

3.

Data

as

of

3/30/10

filings,

where

exact

+200bps

shock

up

scenario

data

was

not

provided

PBCT

interpolated

based

on

data

disclosed

Second Quarter 2010 Results

Asset Sensitivity

Net Interest Income at Risk

1

Analysis involves PBCT estimates, see notes below

Lowest Amongst

Highest Amongst

Core

PBCT Multiple to

Scenario

Our Peers

Our Peers

Peer Median

PBCT

Peer Median

Shock Up 100bps 2

-1.4%

4.5%

1.8%

7.0%

4.0x

Shock Up 200bps 3

-2.7%

9.0%

3.6%

15.9%

4.4x

Change in Net Interest Income

30

High Quality Consumer Portfolio

Total Portfolio $4.7 billion

(as of June 30, 2010)

Residential Mortgage Portfolio

Credit Statistics

Weighted Average:

Loan to value¹

54%

FICO scores¹

727

Net charge-offs:

0.07%

Non-accrual:

3.40%

Home Equity Portfolio

Credit Statistics

Weighted Average:

Combined LTV¹

55%

FICO scores¹

751

Net charge-offs:

0.03%

Non-accrual:

0.44%

(1) Excludes the impact of the former Butler Bank and the former

Chittenden Corp.

1-4 Family

Residential

53%

Home Equity

Loans & Lines

42%

Indirect

Auto

4%

Other

1%

31

Retail

27%

Office

25%

Industrial

12%

Residential

14%

Hospitality

9%

Other

11%

Land

2%

Well Balanced Commercial Portfolio

As of June 30, 2010

Total Portfolio $10.5 billion

$5.5 billion CRE¹

(1) Includes the Commercial Real Estate portion of the Shared National Credit portfolio of $229 million

CRE, By Sector

SNC

4%

Equip. Fin.

22%

Commercial

Real Estate

50%

General C&I

24%

32

Peer Group

Company Name

Ticker

State

Associated Banc-Corp

ASBC

WI

Astoria Financial Corporation

AF

NY

BOK Financial Corporation

BOKF

OK

City National Corporation

CYN

CA

Comerica Incorporated

CMA

TX

Commerce Bancshares, Inc.

CBSH

MO

Cullen/Frost Bankers, Inc.

CFR

TX

First Horizon National Corporation

FHN

TN

Flagstar Bancorp, Inc.

FBC

MI

Fulton Financial Corporation

FULT

PA

Hudson City Bancorp, Inc.

HCBK

NJ

M&T Bank Corporation

MTB

NY

Marshall & Ilsley  Corporation

MI

WI

New York Community Bancorp, Inc.

NYB

NY

Synovus Financial Corp.

SNV

GA

TCF Financial Corporation

TCB

MN

Valley National Bancorp

VLY

NJ

Webster Financial Corporation

WBS

CT

Zions Bancorporation

ZION

UT

For more information, investors may contact:

Peter Goulding, CFA

peter.goulding@peoples.com

(203) 338-6799