People's United Financial — Q4 2020 Earnings Presentation
24 slides from People's United Financial's earnings presentation, Jan 22, 2021
Slide 1: Fourth Quarter and Full Year 2020 Results
Fourth Quarter and Full Year 2020 Results January 21, 2021 Exhibit 99.2
Slide 2: Forward-Looking Statement
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
Slide 3: Full Year 2020 Overview
1 Net interest income on a fully taxable equivalent basis was $1.61 billion, an increase of $164 million or 11%. Full Year 2020 Overview Net Income of $573 Million, or $1.32 per Common Share Operating Earnings of $1.27 per Common Share Net interest margin: 2.99%, a decrease of 15 basis points Net in
Slide 4: In-Store Branch Relationship With Stop & Shop
In-Store Branch Relationship With Stop & Shop People’s United has decided not to renew its existing in-store branch contracts with Stop & Shop in Connecticut and New York upon expiration in 2022 Connecticut 84 Stop & Shop branches (Total Branches: 172) Contract expiration: January 31, 2022 New York
Slide 5: Fourth Quarter 2020 Overview
1 Net interest income on a fully taxable equivalent basis was $390.2 million, a decrease of $8.5 million or 2%. Fourth Quarter 2020 Overview Net Income of $207.7 Million, or $0.49 per Common Share Operating Earnings of $0.35 per Common Share Sale of People’s United Insurance Agency: completed Nov. 2
Slide 6: Net Interest Income
Net Interest Income1 ($ in millions) $391.4 $382.8 1 Net interest income on a fully taxable equivalent basis for 3Q 2020 and 4Q 2020 was $398.7 million and $390.2 million, respectively. ($8.6) or (2%) Linked-Quarter Change ($15.5) $6.4 $0.3 $0.2
Slide 7: Net Interest Margin
Net Interest Margin 2.97% 2.84% (13) bps Linked-Quarter Change (9) bps 5 bps (7) bps (2) bps 1 Excludes short-term investments, which is mostly comprised of deposits at the Federal Reserve Bank. 1
Slide 8: Loans: Average Balances
Loans: Average Balances $44,061 ($ in millions) $44,853 Linked-Quarter Change Linked-quarter change ($792) million or (2%) $202 ($587) ($279) ($119) ($9)
Slide 9: Deposits: Average Balances
Deposits: Average Balances ($ in millions) $50,674 $49,542 Linked-quarter change +$1.1 billion or 2% ($865) $989 $799 $209 Linked-Quarter Change
Slide 10: Non-Interest Income
Non-Interest Income ($ in millions) $101.1 $178.2 Linked-Quarter Change +$77.1 or 76% Ex. Non-Operating Non-Interest Income: $1.2 or 1% $75.9 ($5.6) $2.8 $1.0 $0.5 $0.3 $2.2 1 Non-operating represents a 4Q 2020 gain, net of expenses, on the sale of People’s United Insurance Agency (completed Nov. 2,
Slide 11: Non-Interest Expense
Non-Interest Expense ($ in millions) $293.4 $293.6 ($0.2) or (0.1%) Ex. Merger-Related Expenses: ($0.5) or (0.2%) Linked-Quarter Change ($1.5) ($0.8) ($0.5) ($1.9) $1.4 $2.4 $0.3 $0.4
Slide 12: Efficiency Ratio Quarterly Trend
Efficiency Ratio Quarterly Trend
Slide 13: Asset Quality
Asset Quality 1 PBCT ratios for periods prior to January 1, 2020 have been restated to reflect the total loan portfolio (originated & acquired) Notes: Source: SNL Financial Top 50 Banks represents the largest 50 banks by total assets in each respective quarter. PBCT Peer Group (Median) Top 50 Banks
Slide 14: Returns
Returns Return on Average Assets Operating Return on Average Assets Return on Average Tangible Common Equity Operating Return on Average Tangible Common Equity Quarterly Trend
Slide 15: Capital Ratios
Capital Ratios Dec. 31, 2019 Mar. 31, 2020 Jun. 30, 2020 Sep. 30, 2020 Dec. 31, 2020 People’s United Financial, Inc. Tang. Com. Equity/Tang. Assets 8.0% 7.4% 7.3% (2) 7.5% (2) 7.5% (2) Tier 1 Leverage 9.1% (1) 8.4% 8.0% (3) 8.2% (3) 8.4% (3) Common Equity Tier 1 10.2% 9.5% 9.8% 9.9% 10.5% Tier 1 Ris
Slide 16: Full Year 2021 Outlook
Full Year 2021 Outlook1 Net Interest Income Net Interest Margin Non-Interest Expense (Operating) Credit Capital Growth range: (2%) – (4%) $1.150 billion - $1.180 billion Maintain excellent credit quality Provision: $60 million - $80 million Maintain strong capital levels Common equity tier 1 capital
Slide 17: Appendix
Appendix
Slide 18: Allowance for Credit Losses (ACL)
Allowance for Credit Losses (ACL) 4Q 2020 ACL reflects consideration of a baseline economic forecast and a more adverse scenario, each prepared as of late December. Baseline scenario reflects general improvement in most key economic variables and recently approved government stimulus measures. More
Slide 19: Loan Risk Profile
Loan Risk Profile ($ in millions) 1 MW / ABL = Mortgage Warehouse / Asset Based Lending 2 Includes loans 30-89 days past due and non-performing loans
Slide 20: Interest Rate Risk Profile
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 Dec. 31, 2020 Sep. 30, 2020 Net
Slide 21: Loans By State
Loans By State $26,592 $29,745 $32,575 $28,411 ($ in millions, end of period balances) Breakdown $35,241 $43,596 $43,869
Slide 22: Deposits By State
Deposits By State $26,138 $29,861 $33,056 $28,417 ($ in millions, end of period balances) Breakdown $36,159 $43,590 $52,138
Slide 23: Peer Group
Peer Group Firm Ticker City State 1 Citizens Financial Group, Inc. CFG Providence RI 2 Comerica Inc. CMA Dallas TX 3 First Horizon National Corp. FHN Memphis TN 4 F.N.B. Corp. FNB Pittsburgh PA 5 Huntington Bancshares, Inc. HBAN Columbus OH 6 KeyCorp KEY Cleveland OH 7 M&T Bank Corp. MTB Buffalo NY
Slide 24: For more information, investors may contact
For more information, investors may contact: Andrew S. Hersom (203) 338-4581 [email protected]
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