Exhibit 99.2
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People’s United Financial, Inc.
3rd Quarter 2012 Earnings Conference Call October 18, 2012
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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” 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) residential mortgage and secondary market activity; (7) changes in accounting and regulatory guidance applicable to banks; (8) price levels and conditions in the public securities markets generally; (9) competition and its effect on pricing, spending, third-party relationships and revenues; (10) the successful integration of acquired companies; and (11) 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.
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Third Quarter 2012 Results
Overview / 3Q 2012 vs. 2Q 2012
Operating earnings of $64.4 million or $0.19 per share, versus $0.20 per share in the prior quarter
Operating net interest margin of 3.82%, down 6 bps
Loan growth of $452 million, 8.8% annualized growth rate
Non-interest income increased $5.7 million to $81.4 million
Efficiency ratio improved to 61.4% from 61.5% including the impact of the Citizens branch acquisition
Net charge-offs fell to 18bps, lowest level since 2Q 2009
Repurchased 4.5 million shares, or $53.5 million, at a weighted average price of $11.90 per share
TCE/TA ratio decreased to 11.2% from 11.4% as we continued to efficiently deploy capital
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Net Interest Margin- Decrease from 2Q 2012
0.03%
(0.09%) (0.01%)
3.96%
3.89%
2Q 2012 Margin
Lower Loan Yields
Lower Cost Recovery Income
Lower Funding Rates/ Mix
3Q 2012 Margin
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Net Interest Margin
3.89
4.07
4.12
3.97
3.96
4.03
4.07
3.97
3.88
3.82
3Q 2012
3Q 2011
4Q 2011
1Q 2012
2Q 2012
Margin- Operating
Margin- Reported
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Acquired Loan Portfolio
Acquired loans initially recorded at fair value (inclusive of related credit mark) without carryover of historical ALLL
Accounting model is cash-flow based:
Contractual cash flows (principal & interest) less Expected cash flows (principal & interest) = non-accretable difference (effectively utilized to absorb actual portfolio losses) Expected cash flows (principal & interest) less fair value = accretable yield Expected cash flows are regularly reassessed and compared to actual cash collections
Carrying Amount Component b Charge-offs As of 9/30/2012 Carrying Accretable Non-Accretable Non-Accretable Incurred Since
(in $ millions) Amount a, b Yield Difference NPLs c Difference/NPLs Acquisition
FinFed (2/18/10) $178.1 $4.6 $7.9 $33.8 23% $11.4
Butler (4/16/10) 65.1 24.9 15.7 11.2 140% 5.9
RiverBank (11/30/10) 264.8 101.4 10.9 23.2 47% 4.1
Smithtown (11/30/10) 848.3 444.5 122.3 91.9 133% 121.1
Danvers (7/1/11) 1, 277.3 341.6 19.5 41.9 47% 16.6
Total $2,633.6 $917.0 $176.3 $202.0
Initial carrying amounts of acquired portfolios are as follows: FinFed, $1.2BN; Butler, $141MM; RiverBank, $518MM; Smithtown, $1.6BN; and Danvers, $1.9BN.
Carrying amount and related components reflect loan sale, settlement and payoff activity which have occurred since acquisition.
Represent contractual amounts; loans meet People’s United Financial’s definition of a non-performing loan but are not subject to classification as non-accrual in the same manner as originated loans. Rather, these loans are considered to be accruing loans because their interest income relates to the accretable yield recognized at the pool level and not to contractual interest payments at the loan level.
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Acquired Loan Portfolio
Amortization of Original Discount on Acquired Loan Portfolio
$ in millions, except per share data
Amortization of Original Discount on Acquired Loan Portfolio Impact on Net Interest Margin
3Q12 Total Accretion (All interest income on acquired loans)
2Q12 Acquired Loan Portfolio Carrying Amount 3Q12 Acquired Loan Portfolio Carrying Amount 3Q12 Average Acquired Loan Portfolio
Effective Yield on Acquired Loan Portfolio
Weighted Average Coupon on Acquired Loan Portfolio 1
Incremental Yield Attributable to Amortiz. of Discount on Acq. Loan Portfolio
Incremental Interest Income from Amortiz. of Discount on Acq. Loan Portfolio
3Q12 Average Earning Assets
Add: Average unamortized loan discount 2 Adjusted 3Q12 Average Earning Assets
49
3,017 2,634 2,825
6.90% 5.39% 1.51% 10.6
24,474
88
24,562
Impact on Overall Net Interest Margin (bps) 17
Operating Net Interest Margin 3.82% Adjusted Net Interest Margin 3.65%
Amortization of Original Discount on Acquired Loan Portfolio Impact on Earnings Per Share
Interest Income from Amortization of Original Discount on Acq. Loan Portfolio 3Q12 Effective Tax Rate 3Q12 Earnings from Amortiz. of Original Discount on Acq. Loan Portfolio 3Q12 Weighted Average Shares Outstanding
10.6
32.5%
7.2
336.5
3Q12 EPS Impact from Amortiz. of Discount on Acq. Loan Portfolio $0.02
Note:
1. Excluding FinFed, the weighted average coupon on the acquired loan portfolio is 5.07%
2. Represents the difference between the outstanding balance of the acquired loan portfolio and the carrying amount of the acquired loan portfolio
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Loans
Linked Quarter Change
(in $ millions)
722
113
(383)
20,588
21,040
Jun 30, 2012
Commercial Banking
Retail
Acquired
Sep 30, 2012
8.8%
Annualized Linked QTD change- Total
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Deposits
Linked Quarter Change
(in $ millions)
Total
Commercial
Retail
21,458
5,353
16,105
Jun 30, 2012
(363)
Retail
268
Commercial
21,363
5,621
15,742
Sep 30, 2012
Annualized Linked QTD change- Total
-1.8%
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Growing Future Earnings Per Share
Loans and Deposits per Share
Growing Future Earnings Per Share
Loans and Deposits per Share
Loans
Loans ($Bn)
$22 $21 $20 $19 $18 $17 $16 $15 $14
$62.53
$65
$60
$55
$50
$45
$40
Loans per Share
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Loans per Share
Gross Loans ($BN)
$22 $21 $20 $19 $18 $17 $16 $15 $14
$63.49
$65
$60
$55
$50
$45
$40
Deposits per Share
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Deposits ($BN)
Deposits per share
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Non-Interest Income
Linked Quarter Change
(in $ millions)
2.5
2.3
0.8
0.7
0.5
(0.6)
(0.5)
75.7
81.4
2Q 2012
Loan Prepayment Fees
Insurance
Gain on Sale, Residential Loans
Operating Lease Income
Bank Service Charges
Brokerage
Other
3Q 2012
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Non-Interest Expense
Linked Quarter Change
(in $ millions)
Total
Non-Operating
Operating
205.7
3.6
(0.4)
(1.7)
(1.3)
(0.3)
6.9
208.9
3.2
202.1
205.7
2Q 2012
Non-Operating
Professional
& Outside Svc
Comp & Benefits
Other
Op Exp- Acqd Citizens
3Q 2012
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Efficiency Ratio
Since 1Q 2010
76.1%
73.1% 72.4% 71.9%
66.0% 65.5%
63.6% 62.4% 62.3% 61.5% 61.4%
1Q 2010
2Q 2010
3Q 2010
4Q 2010
1Q 2011
2Q 2011
3Q 2011
4Q 2011
1Q 2012
2Q 2012
3Q 2012
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Asset Quality
NPAs / Loans & REO* (%)
Asset Quality
NPAs / Loans & REO* (%)
Since 1Q 2010
4.00
3.00
2.00
1.00
1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012
2.82
2.07
1.67 1.59
PBCT Peer Group Median Top 50 Banks by Assets
* 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
Source: SNL Financial and Company filings
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Asset Quality
Net Charge-Offs / Avg. Loans (%)
Asset Quality
Net Charge-Offs / Avg. Loans (%)
Since 1Q 2010
2.00
1.50
1.00
0.50
0.00
0.62
0.44
0.26
0.18
1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012
PBCT Peer Group Median Top 50 Banks
Source: SNL Financial and Company filings
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Allowance for Loan Losses
Originated Portfolio Coverage Detail
(in $ millions)
2.00%
1.50%
1.00%
0.50%
0.00%
1.49%
1.22%
Commercial Banking
NPLs:Loans ALLL:Loans
Commercial ALLL—$156.0 million
82% of Commercial NPLs
2.00% 1.50% 1.00% 0.50% 0.00%
1.35%
0.35%
Retail Banking
NPLs:Loans ALLL:Loans
Retail ALLL—$19.5 million
26% of Retail NPLs
2.00% 1.50% 1.00% 0.50% 0.00%
1.45%
0.95%
Total
NPLs:Loans ALLL:Loans
Total ALLL—$175.5 million
66% of Total NPLs
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Operating ROAA Progress
Since 1Q 2010
0.96% 0.97%
0.90% 0.91%
0.85% 0.84% 0.86%
0.60% 0.61%
0.57%
0.48%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012
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Operating ROATE Progress
Since 1Q 2010
8.9% 8.6%
7.8% 7.8%
6.9% 7.2%
6.4%
4.0%
3.5% 3.4%
2.9%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012
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Operating Dividend Payout Ratio
Since 1Q 2010
209%
175% 180%
157%
104% 98% 96% 93%
87% 82% 84%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012
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Capital Ratios
Since 1Q 2010
1Q 2010 1Q 2011 1Q 2012 2Q 2012 3Q 2012
People’s United Financial
Tang. Com. Equity/Tang. Assets 18.7% 13.9% 11.7% 11.4% 11.2%
Leverage Ratio 1, 5 19.2% 14.5% 12.1% 11.8% 11.5%
Tier 1 Common 2 23.1% 17.1% 13.9% 13.6% 13.6%
Tier 1 Risk-Based Capital 3, 5 23.9% 17.9% 14.4% 14.1% 14.1%
Total Risk-Based Capital 4, 5 25.6% 19.4% 16.0% 15.6% 15.6%
People’s United Bank
Leverage Ratio 1, 5 12.3% 11.4% 11.0% 10.9% 10.8%
Tier 1 Risk-Based Capital 3, 5 15.4% 13.9% 13.1% 13.0% 13.2%
Total Risk-Based Capital 4,5 16.3% 14.8% 14.0% 14.0% 14.1%
Notes:
1. Leverage (core) Capital represents Tier 1 Capital (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 Adjusted Total Assets (period end total assets less goodwill and other acquisition-related intangibles)
2. Tier 1 Common represents total stockholder’s equity, excluding goodwill and other acquisition-related intangibles, divided by Total Risk-Weighted Assets
3. Tier 1 Risk-Based Capital represents Tier 1 Capital divided by Total Risk-Weighted Assets
4. Total Risk-Based Capital 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 for the Bank are: Leverage Ratio, 5%; Tier 1 Risk-Based Capital, 6%; and Total Risk-Based Capital, 10%
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Summary
Sustainable Competitive Advantage
Premium brand built over 170 years
High quality Northeast footprint characterized by wealth, density and commercial activity
Strong leadership team Solid net interest margin
Superior asset quality
Focus on relationship-based banking
Growing loans and deposits within footprint—in two of the largest MSAs in the country (New York City, #1 and Boston, #10)
Improving profitability
Returning capital to shareholders
Strong capital base as evidenced by robust Tier 1 Risk-Based and Tier 1 Common ratios
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Appendix
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Current Asset Sensitivity
For 2Q 2012 we were more than twice as asset sensitive as the estimated median of our peer group
For an immediate parallel increase of 100bps, our net interest income is projected to increase by ~$60MM on an annualized basis
Yield curve twist scenarios confirm that we are reasonably well protected from bull flattener (short rates are unchanged, long rates fall) and benefit considerably from bear flattener environments (short rates rise, long rates are unchanged)
Net Interest Income at Risk 1
Analysis involves PBCT estimates, see notes below
Change in Net Interest Income
Lowest Highest PBCT Multiple to
Scenario Amongst Peers Amongst Peers Peer Median Peer Median
Shock Up -4.0% 6.1% 2.7% 2.2x
100bps 2
Shock Up -7.1% 12.2% 5.2% 2.5x
200bps 3
Notes:
1. Analysis is as of 6/30/12 filings
2. Data as of 6/30/12 SEC filings, where exact +100bps shock up scenario data was not provided PBCT interpolated based on data disclosed
3. Data as of 6/30/12 filings, where exact +200bps shock up scenario data was not provided PBCT interpolated based on data disclosed
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Peer Group
Firm Ticker City State
1 Associated ASBC 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 NYB 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
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People’s United Financial, Inc.
For more information, investors may contact: Peter Goulding, CFA
203-338-6799 peter.goulding@peoples.com