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 |