First Quarter 2020 Results - People's United Financial...•Top 10 clients account for over 70% of Commercial Real Estate hotel exposure. Each cycle-tested and have extensive hotel

First Quarter 2020 Results

April 23, 2020

1

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 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’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 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; (10) changes in regulation resulting from or relating to

financial reform legislation; and (11) the COVID-19 pandemic and its effect on the economic and business environments in which

we operate. People's United 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

Response to COVID-19

Supporting Our Customers

• Waiving certain fees on case-by-case basis

• Offering loan forbearance

― Granted forbearance on 7,654 loans1

o Commercial: 1,280

o Equipment finance: 4,244

o Retail: 2,130

• Participating in the CARES Act Paycheck Protection Program (PPP)

― Over 9,600 loans totaling more than $2.1 billion submitted to the SBA and approved1

• Providing individualized support for customers with consumer and business loans

• Issuing a 90-day foreclosure moratorium on eligible consumer residential loans

• Postponed planned fee changes previously scheduled for April 1st

Caring For Our Communities

• Engaging with community organizations and government officials to ensure coordinated approach to relief efforts

• Distributing, through the Bank and its charitable foundations, funding for COVID-19 relief efforts. Granted more than $3.5 million in support

― Providing monetary support to response funds and non-profits that are meeting the basic needs of vulnerable populations, including low-income residents, first responders, healthcare workers, and small businesses

• Donated more than 1,000 N95 face masks to local hospitals in need

Protecting Our Employees

• Instituted a Company-wide prevention and social distancing policy

• Reduced branch hours and implemented appointment only banking to reduce potential spread of COVID-19

• Enabled non-branch employees to work from home

• Providing additional paid-time-off for front line employees and those in positions where telecommuting is not possible

• Covering 100% of the cost for COVID-19 testing and related treatment for employees and dependents covered under the Company’s health plan

• Enhanced cleaning of facilities

1 As of April 21, 2020

31 Net interest income on a fully taxable equivalent basis was $404 million, an increase of $13 million or 3%.Note: acquisition of United Financial closed on Nov. 1, 2019. 1Q 2020 includes a full quarter of United’s results.

First Quarter 2020 Overview

Net income of $130.4 million, or $0.30 per Common Share

Operating Earnings of $0.33 per Common Share

• Net interest income1 of $396 million, an increase of $13 million or 3%

• Net interest margin of 3.12%, a decrease of 2 basis points

• Average loans of $43.5 billion, an increase of $1.5 billion or 3%

• Period-end loans of $44.3 billion, an increase of $688 million or 2%

• Average deposits of $44.2 billion, an increase of $2.0 billion or 5%

• Period-end deposits of $44.7 billion, an increase of $1.2 billion or 3%

• Non-interest income of $124 million, a decrease of <$ 1 million or <1%

‒ On an operating basis, non-interest income increased $7 million or 6%

• Non-interest expense of $320 million, a decrease of $6 million or 2%

‒ On an operating basis, non-interest expense increased $16 million or 5%

• Efficiency ratio of 54.0%, an increase of 30 basis points

‒ Compared to the prior year quarter, the efficiency ratio improved 330 basis points

• Net loan charge-offs of 0.10%, an increase of 4 basis points

• Provision of $33.5 million, reflecting the application of CECL and the impact of COVID-19

(Comparisons versus fourth quarter 2019, unless noted otherwise)

c

4

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

0.16%

PBCT

Median, excluding PBCT = 0.53%

Source: SNL Financial

Average Annual Net Charge-Offs / Average LoansPeer Group Comparison (2008-2019)

Loans: Long History of Exceptional Asset Quality

• Franchise-wide focus on sustaining exceptional asset quality

• As we have grown People’s United, our conservative and well-defined underwriting approach has not changed

― Average tenure of our senior credit officers is over 30 years

• High quality, cycle-tested customer base

― Our local market expertise helps to identify and develop long-term relationships with highly coveted, strong business owners/operators

― Many of our customers were with People’s United during the financial crisis. Average tenure of our top 25 largest relationships is over 17 years

• Driven by our unwavering commitment to sustaining exceptional asset quality, regardless of the credit environment, People’s United entered the COVID-19 crisis in a position of strength

c

Home Equity Loans10%

Other6%

Packaging2%

Manufacturing7%

Wholesale Trade5%

Hospitality & Entertainment

7% Health Services5%

Other7%

Transportation/Utility3%

5

(At March 31, 2020, end of period balances)

Residential(Multi-Family)

35%

Retail26%

Office Buildings17%

Other6%Health Care

4%Industrial /

Manufacturing5%

Finance & Insurance

26%

Service17%

Manufacturing10% Wholesale

Trade11%

Retail Trade6% Transportation

/ Utility24%

Construction14%

Rental & Leasing

11%

Service14%

RE, Rental &Leasing

9%

Commercial Real Estate: $14.7 billion Commercial & Industrial: $12.0 billion Equipment Financing: $5.0 billion

Residential Mortgage: $10.1 billion Home Equity & Other Consumer: $2.5 billion

Health Services9%

Other6%

• Originated weighted average FICO score – 1Q 2020

‒ Residential mortgage: 757

‒ Home equity: 770

• Originated weighted average LTV – 1Q 2020

‒ Residential mortgage: 68%

‒ Home equity: 60%

• 58% of home equity originations during past 3 years in first lien position

Fixed Rate32%

Adjustable Rate68%

Commercial

Retail

Home EquityLines of Credit

84%

Printing4%

Waste Management4%

Retail Trade 3%

Loans: Diversified Portfolio

Construction3%

c

6

Loans: Exposure to Sectors Significantly Impacted by COVID-19(Data as of March 31, 2020, end of period balances)

Hospitality: $1.0 billion

• Majority of the portfolio is flagged by major hotel brands

• Most of the properties in the hotel portfolio are managed/owned by operators in this space as their primary business

• Portfolio is primarily located in the main cities within our footprint: e.g. NYC, Boston, Portsmouth, Burlington

• Top 10 clients account for over 70% of Commercial Real Estate hotel exposure. Each cycle-tested and have extensive hotel experience

Restaurants: $540 million

• Half of the portfolio is managed in the Franchise Finance specialized industry vertical within C&I

• Traditional C&I manages 35% of restaurant exposure

• Equipment Finance manages 15% of restaurant exposure

• Nearly half of total restaurant exposure is quick service restaurants, which have experienced a lesser degree of disruption

Retail: $4.7 billion

• No material exposure to enclosed retail malls

• More than half of total retail exposure is grocery anchored, pharmacy, big box home improvement and gas stations / convenience stores

Airlines, Cruise Lines, Casinos, Energy, Student Loans, Auto Lending, Consumer Credit Cards: immaterial or no exposure

7

Adoption & Application of CECL

• Day 1 - Adoption of CECL effective January 1, 2020 increased the ACL by $72.2 million, or 29%, and the reserve for unfunded commitments by $14.5 million

Due to CECL:― PCD loans that meet the definition of nonperforming are now included in nonperforming disclosures resulting in a $67 million

increase in reported NPLs in 1Q 2020

― All loans (originated and acquired) are now included in reported credit quality ratios (pro-forma comparable ACL/Loans coverage ratio at 12/31/19 = 57 bps)

• Day 2 - Application of CECL for the quarter ended March 31, 2020 further increased the ACL by $22.9 million, or 9%

1 MWL = Mortgage Warehouse Lending and ABL = Asset Based Lending, included in C&I portfolio segment prior to January 1, 2020.

------- Reserve Build -------

Allowance for Credit Losses (ACL)

December 31, CECL Adoption January 1, CECL Application March 31,

Loan Portfolio Segment 2019 Impact 2020 Impact 2020

CRE 76.9$ 3.6$ 80.5$ 6.1$ 86.6$

C&I 92.5 (20.7) 71.8 1.9 73.7

Equipment Finance 47.4 (1.7) 45.7 3.4 49.1

MWL / ABL 1

- 2.6 2.6 (0.2) 2.4

Total Commercial 216.8$ (16.2)$ 200.6$ 11.2$ 211.8$

Residential Mortgage 20.0$ 54.9$ 74.9$ 8.7$ 83.6$

Home Equity 7.7 30.5 38.2 3.0 41.2

Other Consumer 1.0 4.1 5.1 - 5.1

Total Retail 28.7$ 89.5$ 118.2$ 11.7$ 129.9$

Acquired Loans 1.1$ (1.1)$ -$ -$ -$

Total 246.6$ 72.2$ 318.8$ 22.9$ 341.7$

($ in millions)

8

Adoption & Application of CECL

• Key drivers underlying the 1Q 2020 ACL:

― Quantitative modeling reflects a Baseline economic forecast as of late March and is reflective of a “U” shaped recovery in the second half of 2020

o Forecast is inclusive of COVID-19 pandemic and government response at that time

― Reasonable & supportable forecast period: 2 years

― 1-year straight-line reversion to historical losses

• Regulatory capital: elected to delay the impact of the transition for 2 years (phased in over 3 years beginning in 2022)

1 MWL = Mortgage Warehouse Lending and ABL = Asset Based Lending.

Allowance for Credit Losses (ACL)

($ in millions, at March 31, 2020)

Loan Portfolio Segment Balance % of Balances ACL ACL/Loans NPLs ACL/NPLs

CRE 14,651.6$ 33% 86.6$ 0.59% 53.5$ 161.9%

C&I 9,097.7 21% 73.7 0.81% 54.5 135.2%

Equipment Finance 5,012.7 11% 49.1 0.98% 42.5 115.5%

MWL / ABL 1

2,948.0 7% 2.4 0.08% 1.1 218.2%

Total Commercial 31,710.0$ 72% 211.8$ 0.67% 151.6$ 139.7%

Residential Mortgage 10,081.9$ 23% 83.6$ 0.83% 66.6$ 125.5%

Home Equity 2,350.1 5% 41.2 1.75% 22.1 186.4%

Other Consumer 142.0 0% 5.1 3.59% 0.1 5100.0%

Total Retail 12,574.0$ 28% 129.9$ 1.03% 88.8$ 146.3%

Total 44,284.0$ 100% 341.7$ 0.77% 240.4$ 142.2%

4Q 2019 Deposits Investments Borrowings Loans Calendar Day 1Q 2020

9

Net Interest Income1

($ in millions)

$382.7 $396.0

1 Net interest income on a fully taxable equivalent basis for 4Q 2019 and 1Q 2020 was $390.3 million and $403.7 million, respectively.

+$13.3 or 3%

Linked-Quarter Change

$6.9 $4.4 $2.8 $1.4

($2.2)

10

Net Interest Margin

4Q 2019 Deposits Borrowings Loans Calendar Day 1Q 2020

3.14% 3.12%

(2) bps

Linked-Quarter Change

6 bps 2 bps

(8 bps) (2 bps)

Loans: Average Balances

11

$13,793 $14,715

$10,805 $10,867

$4,785$4,916

$10,019$10,236

$2,604$2,726

4Q 2019 CommercialReal Estate

ResidentialMortgage

EquipmentFinance

Home Equity& Other Consumer

Commercial& Industrial

1Q 2020

Commercial Real Estate Commercial & Industrial Equipment Finance Residential Mortgage Home Equity & Other Consumer

$43,460

($ in millions)

$42,006

Linked-Quarter Change

Linked-quarter change+$1.454 billion or 3%

$922 $217 $131 $122 $62

12

Funding & Liquidity

$18,784 $19,943

$9,594 $10,077

$8,927 $9,145

$4,890 $4,998

4Q 2019 Interest-Bearing Checking& Money Market

Non-InterestBearing

Time Savings 1Q 2020

Interest-Bearing Checking & Money Market Non-Interest-Bearing Time Savings

($ in millions)

$44,163$42,195

Linked-quarter change+$1.968 billion or 5%

$1,159 $483 $218 $108

Average DepositsLinked-Quarter Change

Strong funding and liquidity profile

• Secured borrowing capacity1

Federal Home Loan Bank: $4,184

Unpledged Securities: $3,800

Total Capacity: $7,984

• Since the end of the first quarter 2020, deposit balances have increased $2.61 billion1

1 As of April 20, 2020

13

Non-Interest Income($ in millions)

4Q 2019 Non-Operating Net Gains onSales of Loans

Insurance CustomerInterest RateSwap Income

InvestmentManagement

Fees

BankServiceCharges

CommercialBanking

Lending Fees

Other 1Q 2020

$124.2 $123.8

($0.4) or <(1%)

Linked-Quarter Change

1 Non-operating represents a 4Q 2019 gain, net of expenses, on the sale of eight branches in central Maine.2 Net gains on sales of loans is primarily driven by the 1Q 2020 sale of loans held-for-sale previously acquired in the United Financial transaction.

1

$15.3 $3.4

($0.9) ($0.8)

($7.6)

($1.2)

($8.9)

2

$0.3

14

Non-Interest Expense($ in millions)

4Q 2019 Non-Operating Occupancy&

Equipment

Compensation&

Benefits

RegulatoryAssessments

Amortization ofOther Acquisition-Related Intangible

Assets

Other 1Q 2020

$320.1

$325.7

Ex. Non-Operating Expenses: +$15.6 or 5%

Linked-Quarter Change

1

1 Non-operating expenses include:- Merger-related costs in 4Q 2019 and 1Q 2020 of $22.6 million and $17.9 million, respectively.- Intangible asset write-off in 4Q 2019 of $16.5 million related to the liquidation of the Company’s public mutual funds.

($21.2)

$1.4 $0.9

($1.1)

$9.6 $4.8

15

Efficiency Ratio

57.3%

55.8%

56.8%

53.7%54.0%

1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020

Quarterly Trend

16

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 FinancialTop 50 Banks represents the largest 50 banks by total assets in each respective quarter.

0.59 0.55 0.520.57 0.59

0.84 0.830.78 0.80

0.76 0.76 0.78 0.75

0.0

0.5

1.0

1.5

1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020

0.06 0.05 0.06 0.06

0.100.10

0.16

0.19

0.160.17

0.23

0.26

0.18

0.0

0.1

0.2

0.3

1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020

PBCT Peer Group (Median) Top 50 Banks (Median)

PBCT Peer Group (Median) Top 50 Banks (Median)

Non-Performing Assets / Loans & REO (%)1

Net Charge-offs / Average Loans

17

Returns

0.96%

1.04% 1.05% 0.98%0.89%

1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020

13.0%

14.1% 14.0%12.8%

11.8%

1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020

Return on Average Assets Return on Average Tangible Common Equity

Returns calculated on an operating basis

14.4%1.03% 14.6%1.06%

14.4%

1.13%

15.2%

13.2%

0.96%

18

Capital Ratios

Mar. 31, 2019 Jun. 30, 2019 Sep. 30, 2019 Dec. 31, 2019 Mar. 31, 2020

People’s United Financial, Inc.

Tang. Com. Equity/Tang. Assets 7.7% 7.7% 7.8% 8.0% 7.4%

Tier 1 Leverage 8.8% 8.7% 8.7% 9.1%1 8.4%

Common Equity Tier 1 10.2% 10.1% 10.1% 10.2% 9.5%

Tier 1 Risk-Based 10.8% 10.7% 10.7% 10.7% 10.0%

Total Risk-Based 12.4% 12.0% 12.0% 12.0% 11.3%

People’s United Bank, N.A.

Tier 1 Leverage 9.0% 8.9% 8.8% 9.3%1 8.9%

Common Equity Tier 1 11.2% 11.0% 10.8% 10.9% 10.7%

Tier 1 Risk-Based 11.2% 11.0% 10.8% 10.9% 10.7%

Total Risk-Based 12.9% 12.4% 12.2% 12.1% 12.0%

1 Adjusting for a full quarter of United assets, the pro forma Tier 1 Leverage Ratio at December 31, 2019 is 8.9%.

19

Appendix

20

Response to COVID-19 (Data as of April 21, 2020; $ in millions)

Loan ForbearanceBy Business Segment

Loan ForbearanceBy Commercial Property Type / Industry

Number of Loans $ - Outstanding

Commercial Real Estate 371 1,266$

Commercial & Industrial 909 623

Equipment Finance 4,244 426

Total Commercial 5,524 2,315$

Residential Mortgage 1,460 642$

Home Equity 580 79

Other Consumer 90 1

Total Retail 2,130 722$

Total 7,654 3,037$

Number of Loans $ - Outstanding

By Property Type

Hospitality/Entertainment 82 610$

Retail 83 314

Residential 95 155

Office Building 61 107

Industrial/Manufacturing 23 59

Special Use 10 12

Other 17 9

Subtotal 371 1,266$

By Industry

Transportation & Utilities 774 240$

Services 1,597 229

Real Estate, Rental & Leasing 375 132

Manufacturing 374 101

Retail Trade 253 65

Arts, Entertainment & Recreation 182 62

Health Care & Social Assistance 500 46

Wholesale Trade 243 39

Construction 317 37

Printing 79 35

Other 459 63

Subtotal 5,153 1,049$

Total 5,524 2,315$

21

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.

-0.4%

2.1%3.9%

5.2%

2.0%3.5%

4.8%

Down 25 Up 100 Up 200 Up 300

-0.1%

0.1%

-0.3%

2.1%0.6%

1.6%

Short End -25 Short End +100 Long End -25 Long End +100

Immediate Parallel ShockEst. Change in NII

Yield Curve Twist1

Est. Change in NII

Mar. 31, 2020 Dec. 31, 2019

Net Interest Income (NII) Sensitivity

22

Loans By State

$7,205 $7,546 $7,779 $7,781 $9,222 $10,910 $10,823

$4,728 $4,954 $5,363 $5,616$6,212

$9,622 $9,605$5,146 $5,578 $5,762

$7,378$7,168

$7,788 $7,815

$4,123$4,164

$4,167$4,163

$4,160

$4,228 $4,253

$904$1,155

$1,503$1,649

$1,921

$2,187 $2,164

$4,486 $5,014

$5,171

$5,988

$6,558

$8,861 $9,624

Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 Mar. 31, 2020

Connecticut Massachusetts New York Northern New England New Jersey Other

$26,592

$29,745

$32,575

$28,411

($ in millions, end of period balances)

Breakdown

$35,241

$43,596 $44,284

23

Deposits By State

$14,768 $16,093 $17,072 $17,640 $20,230

$26,268 $27,011

$3,067$3,299

$3,357$4,013

$4,451

$5,936$6,059

$3,205$3,456

$3,527

$5,195

$5,371

$5,493$5,705

$5,098

$5,569$5,905

$6,208

$6,107

$5,893$5,966

Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 Mar. 31, 2020

Connecticut Massachusetts New York Northern New England

$26,138

$29,861

$33,056

$28,417

($ in millions, end of period balances)

Breakdown

$36,159

$43,590 $44,741

24

Peer Group

Firm Ticker City State

1 Associated Banc-Corp ASB Green Bay WI

2 BankUnited Inc. BKU Miami Lakes FL

3 Citizens Financial Group, Inc. CFG Providence RI

4 Comerica Inc. CMA Dallas TX

5 First Horizon National Corp. FHN Memphis TN

6 F.N.B. Corp. FNB Pittsburgh PA

7 Huntington Bancshares, Inc. HBAN Columbus OH

8 KeyCorp KEY Cleveland OH

9 M&T Bank Corp. MTB Buffalo NY

10 New York Community Bancorp NYCB Westbury NY

11 Signature Bank SBNY New York NY

12 Sterling Bancorp STL Montebello NY

13 Valley National Bancorp VLY Wayne NJ

14 Webster Financial Corp. WBS Waterbury CT

15 Zions Bancorp. ZION Salt Lake City UT

For more information, investors may contact:Andrew S. Hersom

(203) [email protected]