Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE - People's United Financial, Inc. | d308302dex991.htm |
| 8-K - FORM 8-K - People's United Financial, Inc. | d308302d8k.htm |
 Acquisition of Select Citizens Bank Branches
February 28, 2012
Exhibit 99.2 |
 1
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.
Forward-Looking Statement |
 2
Price & Structure
•
$3.25MM
•
100% cash
Deal value:
Consideration:
Pricing Multiples
Deposit premium:
•
1.0%
Closing & Other
Due diligence:
Approvals:
Expected close:
•
Completed
•
Regulatory approvals
•
2
nd
quarter 2012
Summary of Key Terms
Acquisition Assets
•
Citizens Bank
•
$325MM
•
--
•
56
•
52 ($213MM deposits, 66% of deposits)
•
4 ($112MM deposits, 34% of deposits)
Seller:
Deposits:
Loans:
Total branches:
In-store branches:
Traditional branches:
Note: Financial data as of 12/31/2011 |
 3
Unique opportunity based on People’s United’s excellent in-store
branch banking track record, longstanding relationship with Stop & Shop
and strong traditional branch network in the market
–
In each of the past 14 years, People’s United has ranked as the #1
in-store branch operator in the U.S.
*
–
Becomes the exclusive provider of banking services to Stop & Shop on Long
Island, Southern New York and Connecticut
–
Pro forma for this transaction, we will operate 139 in-store Stop & Shop
branches Strong traditional branch network is crucial for successful
in-store branch banking –
37 traditional branches on Long Island and Westchester County
–
Our traditional branches offer the full suite of services
–
Provides a lift to traffic in both in-store and traditional branches
–
Opportunity to bring average acquired in-store deposit balances up from $4MM to
our average in- store deposit balances of $29MM
Adds additional source of core deposit funding
–
Expected core deposit growth within acquired in-store branches and surrounding
traditional branches will help fund continued strong loan growth
* Source: SNL Financial. As measured by average deposits per in-store branch
among active banks with at least $500MM of in-store deposits Transaction
Rationale Transaction deepens People’s United’s presence on Long Island and in
Westchester County |
 4
People’s United Bank branches (includes 38 traditional branches in NY)
Citizens, in-store branches (52)
Source: SNL Financial
Citizens, traditional branches (4)
Expanding Long Island, NY and Hudson Valley Footprint
Branch Map |
 5
Deposits Acquired
Source: Company financials; financial data as of 12/31/2011
Cost of Deposits: 0.42%
Total Deposits: $325MM
CD
$64MM
20%
Demand
$58MM
18%
Savings
$33MM
10%
Money Market
$170MM
52%
Attractive Deposit Base |