First Niagara Uses 'Super Capitalized' Position to Grow Profitably, Boost Lending and Expand into Pennsylvania in Third Quarter of 2009
- Press Release
- Source: First Niagara Financial Group, Inc.
- On 8:30 am EDT, Thursday October 29, 2009
BUFFALO, N.Y., Oct. 29 /PRNewswire-FirstCall/ --
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| FNFG | 13.12 | -0.17 |
- Operating earnings increase 15% vs. prior year, 7% above linked quarter
- Robust commercial loan and core deposit growth in Upstate New York markets
- Strong capital position further enhanced by $460 million equity offering
- Credit quality continues to compare well with industry peers
- National City acquisition successfully completed - franchise now totals $14 billion in assets and 170 branches
First Niagara Financial Group, Inc. (Nasdaq: FNFG - News) third quarter 2009 results show the bank continues to leverage its strategic business model and superior capital position to fuel profitable growth and further boost lending in its markets, which have now been expanded with the completion of last month's acquisition of 57 National City Bank branch locations in Western Pennsylvania. During the quarter, the Company also completed its third successful equity offering over the past twelve months, raising nearly $1 billion in new capital during last year.
For the third quarter ended September 30, 2009, the Company posted operating (Non-GAAP) net income of $27.3 million or $0.19 per diluted share. Reported (GAAP) net income was $10.9 million or $0.07 per diluted share, including $16.4 million in nonrecurring expenses, net of tax, primarily related to the National City branch transaction and First Niagara's pending acquisition of Harleysville National Bank in Eastern Pennsylvania.
"Our performance once again reflects our position of strength in this tough recessionary environment," President and CEO John R. Koelmel said. "We continue to increase profitability by efficiently executing our relationship-based strategy with both existing and new customers as demonstrated by our solid loan and core-deposit growth. Initial trends from our recent entry into Western Pennsylvania also indicate that we will realize similar results in those new markets. Our latest equity offering evidences continued investor confidence and enables us to further leverage our new 'super-capitalized' position by providing us the firepower to confidently pursue disciplined and opportunistic growth in all of our markets."
"We have coupled dramatic and opportunistic growth over the last 12 months with strict adherence to our underwriting and capital-management disciplines, enabling us to distinguish ourselves in terms of performance and execution, "Chief Financial Officer Michael W. Harrington said. "The opportunities to employ our added capital at superior returns are quite compelling and will quickly offset the short-term dilutive effect of the incremental shares issued. Our growing loan portfolio continues to perform as we expected under current market conditions, with a credit-quality profile that compares very favorably to our peers."
Operating Results (Non-GAAP) Q3 2009 Q2 2009 Q3 2008
--------------------------- ------- ------- -------
Net interest income $ 98.9 $ 79.9 $ 70.2
Provision for credit losses 15.0 8.9 6.5
Noninterest income 30.7 28.8 29.2
Noninterest expense 70.9 60.3 56.8
Net income $ 27.3 $ 25.5 $ 23.7
Weighted average diluted
shares outstanding 147.2 140.2 106.8
Earnings per diluted share $ 0.19 $ 0.18 $ 0.22
Reported Results (GAAP)
---------------------------
Nonrecurring(a) $16.4 $4.7 $-
Net income 10.9 20.8 23.7
TARP(b) - 9.4 -
Net income available to common
shareholders 10.9 11.4 23.7
Earnings per diluted share $0.07 $0.08 $0.22
All amounts in millions except earnings per diluted share. The Non-GAAP/Operating Results table above summarized the Company's operating results excluding certain non-recurring items.
(a) Q3 2009: After-tax noninterest income: Gain on the sale of the merchant services' customer list of $1.5 million. After-tax noninterest expense: Expenses of $14.9 million, primarily related to the NatCity branch acquisition and anticipated merger with Harleysville National Corporation. Also includes a $3.0 million contribution to the First Niagara Bank Foundation in support of charitable giving purposes in Western Pennsylvania. Q2 2009: After-tax noninterest expense: FDIC's special assessment charge of $3.3 million based on each insured depository institution's assets less Tier 1 Capital. Also includes expenses related to the NatCity branch acquisition of $1.4 million.
(b) Q2 2009: Accelerated discount accretion of $7.7 million resulting from the redemption of preferred stock purchased by the U.S. Treasury Department under the Troubled Asset Relief Program and $1.7 million of accrued dividends and preferred stock discount accretion through the redemption date.
Loans
Excluding the loans acquired with the National City branches, average commercial loan balances rose by $98 million or 10% annualized over the linked quarter. This strong growth reflects a 27% increase in loan originations for the current quarter as the Company continues to capitalize on the ongoing competitive dislocation in its markets. Similarly, home equity average balances increased by $13 million or 8% annualized. Residential loan originations totaled $139 million in the third quarter while average balances declined by $97 million due to the Company's long-standing balance sheet management practice of selling the majority of its long-term fixed rate originations into the secondary market.
Credit Quality
Nonperforming loans increased to $66.8 million or 0.93% of total loans at September 30, 2009 from $52.3 million or 0.81% at June 30, 2009, while net charge-offs in the third quarter amounted to $14.5 million or an annualized 0.87% of average loans compared to $6.0 million or 0.37% in the linked quarter. The entire increase in the level of nonperforming loans and net chargeoffs in the third quarter was attributable to two in-market commercial loans within the Company's $118 million shared national credit portfolio. The provision for credit losses was $15.0 million for the quarter, compared to $8.9 million in the second quarter and $6.5 million a year ago. The allowance for credit losses at September 30, 2009 was 1.15% of total loans and 124% of nonperforming loans. Excluding loans obtained in the NatCity branch acquisition, which were recorded at fair-market value as of the acquisition date, the allowance for credit losses was 1.28% of total loans, consistent with the linked quarter.
Deposits
The Company continued to generate robust core deposit growth as a result of its strong focus on building lower cost, relationship based deposit customers. Excluding the deposits associated with the acquired branches, average core deposits grew by $272 million or 25% annualized over the linked quarter. This increase, supported by ongoing promotional campaigns, was marked by new money market and business checking account activity. Core deposits now comprise 75% of total deposits as higher cost CD balances declined by $288 million from the prior quarter.
Additionally, the Company's liquidity position was significantly strengthened by this acquisition which brought the loans-to-deposits ratio to 72% at September 30, 2009.
Net Interest Income
Net interest income increased by 24% from the linked quarter to $98.9 million and was accompanied by significantly lower funding costs in the third quarter. The reduced cost of funds was attributable to the strong growth in core deposits and the runoff of higher rate CD's. In addition, the use of advantaged wholesale borrowings to fund the purchase of targeted earning assets in anticipation of the sizable cash liquidity provided by the branch acquisition was a key driver of the increase in net interest income. The low cost, short-term borrowings used to fund these purchases were subsequently repaid upon the completion of the branch acquisition. Despite the lower spreads related to these securities positions, the tax equivalent net interest margin improved by 3 basis points over the linked quarter to 3.66% owing to the strong growth in our loans and core deposits.
Noninterest Income
Operating (Non-GAAP) noninterest income grew to $30.7 million in the third quarter from $28.8 million in the second quarter. Added deposit activity revenues from the acquired branch locations along with higher mortgage-related income more than offset seasonal declines in insurance and benefits consulting fees. Reported (GAAP) noninterest income includes a $2.5 million gain on the sale of the merchant services' customer list.
Noninterest Expense
Operating (Non-GAAP) noninterest expense for the third quarter increased to $70.9 million from $60.3 million in the second quarter. Operating costs attributable to the acquired branches within the quarter primarily contributed to increases in each major expense category, including associated FDIC premiums. Nonetheless the Company's efficiency ratio (Non-GAAP) improved further to 54.7%. Reported (GAAP) noninterest expense included $23.4 million in integration expenses related to the branch acquisition.
Capital Management
The tangible common equity ratio of 11.0% at September 30, 2009 compares to 10.5% in the linked quarter and was substantially above the 7.8% a year ago. The higher ratio reflects the benefit of the $460 million of capital raised through the September equity offering, the third successful equity offering since the fourth quarter of last year and a period in which the Company raised $955 million in new capital.
On October 27, 2009, the Board of Directors declared a quarterly dividend of fourteen cents ($0.14) per share on outstanding FNFG common stock, consistent with the prior quarter and prior year levels. The dividend is payable on November 24, 2009 to stockholders of record on November 10, 2009.
First Niagara Financial Group, Inc., through its wholly owned subsidiary First Niagara Bank, had assets of $14.1 billion and deposits of $9.9 billion at September 30, 2009. First Niagara Bank is a community-oriented bank providing financial services to individuals, families and businesses through 170 branches and five Regional Market Centers across Upstate New York and Western Pennsylvania. In July 2009, First Niagara announced its plans to acquire Harleysville National Corporation and its $5.6 billion in assets and 83 branches in the Philadelphia area, subject to regulatory and Harleysville shareholder approval. For more information, visit www.fnfg.com.
Conference Call - A conference call will be held at 11 a.m. Eastern Time on Thursday, October 29, 2009 to discuss the Company's financial results and business strategy. Those wishing to participate in the call may dial toll-free 1-877-709-8150. A replay of the call will be available until November 12, 2009 by dialing 1-877-660-6853, account #240, ID # 335041.
Non-GAAP Measures - The Company believes that non-GAAP financial measures provide a meaningful comparison of the underlying operational performance of the Company, and facilitate investors' assessments of business and performance trends in comparison to others in the financial services industry. In addition, the Company believes the exclusion of these items enables management to perform a more effective evaluation and comparison of the Company's results and to assess performance in relation to the Company's ongoing operations. The non-GAAP financial measures of tangible book value and tangible equity exclude intangible assets from total equity.
Forward-Looking Statements - This press release contains forward-looking statements with respect to the financial condition and results of operations of First Niagara Financial Group, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans that could result from an economic downturn; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with an increase in commercial real-estate and business loans and non-performing loans.
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data
2009
--------------------------------
Sept. 30, June 30, March 31,
--------- -------- ---------
-----------------------
SELECTED FINANCIAL DATA
(Amounts in thousands)
-----------------------
Securities available for sale $ 3,652,261 3,339,871 1,800,933
Securities held to maturity $ 1,085,258 398,049 -
Loans and leases:
Commercial:
Real estate $ 2,973,964 2,656,650 2,593,752
Business $ 1,425,956 983,913 969,836
Specialized lending $ 208,574 182,297 174,711
------- ------- -------
Total commercial loans $ 4,608,494 3,822,860 3,738,299
Residential real estate $ 1,725,943 1,815,041 1,914,691
Home equity $ 662,308 647,878 629,916
Other consumer $ 189,271 129,738 134,689
Net deferred costs and discounts $ 29,746 30,864 31,813
------ ------ ------
Total loans and leases $ 7,215,762 6,446,381 6,449,408
Allowance for credit losses $ 83,077 82,542 79,613
------ ------ ------
Loans and leases, net $ 7,132,685 6,363,839 6,369,795
Goodwill and other intangibles $ 938,687 781,047 782,808
Total assets $ 14,137,504 11,577,171 9,587,977
Total interest-earning assets $ 12,514,069 10,278,403 8,368,268
Deposits:
Savings $ 913,144 805,646 786,535
Interest-bearing checking $ 1,062,681 522,977 503,863
Money market deposits $ 3,457,837 2,375,493 2,216,321
Noninterest-bearing $ 1,213,978 761,160 705,965
Certificates $ 3,275,728 1,775,052 2,015,412
--------- --------- ---------
Total deposits $ 9,923,368 6,240,328 6,228,096
Borrowings $ 1,515,148 3,192,837 1,446,885
Total interest-bearing
liabilities $ 10,224,538 8,672,005 6,969,016
Net interest-earning assets $ 2,289,531 1,606,398 1,399,252
Stockholders' equity $ 2,383,604 1,918,579 1,742,391
Tangible equity (1) $ 1,444,917 1,137,532 959,583
Unrealized gain (loss) on securities $ 34,057 3,064 852
Total loans serviced for others $ 770,290 678,885 615,491
----------------------
ASSET QUALITY DATA
(Amounts in thousands)
----------------------
Nonperforming loans:
Commercial real estate $ 32,477 32,075 33,536
Commercial business $ 4,629 4,542 3,772
Specialized lending $ 3,105 3,609 4,728
Shared national credits $ 14,103 573 172
Residential real estate $ 9,140 8,030 6,600
Home equity $ 2,979 2,714 2,791
Other consumer $ 373 754 319
--- --- ---
Total nonperforming loans $ 66,806 52,297 51,918
Real estate owned $ 8,872 5,758 2,001
----- ----- -----
Total nonperforming assets $ 75,678 58,055 53,919
Net loan charge-offs (recoveries):
Commercial real estate $ 2,213 858 4,552
Commercial business $ 1,768 2,309 729
Specialized lending $ 1,518 1,980 1,059
Shared national credits $ 8,500 - -
Residential real estate $ 35 98 13
Home equity $ 125 338 110
Other consumer $ 306 388 467
--- --- ---
Total net loan charge-offs $ 14,465 5,971 6,930
2008
-------------------------------------------
Dec. 31, Sept. 30, June 30, March 31,
-------- --------- -------- ---------
-----------------------
SELECTED FINANCIAL DATA
(Amounts in thousands)
-----------------------
Securities available
for sale $ 1,573,101 1,250,074 1,289,738 1,414,774
Securities held to
maturity $ - - - -
Loans and leases:
Commercial:
Real estate $ 2,551,966 2,489,601 2,468,932 2,388,769
Business $ 940,304 914,452 906,810 863,152
Specialized lending $ 178,916 184,739 181,683 174,476
------- ------- ------- -------
Total commercial
loans $ 3,671,186 3,588,792 3,557,425 3,426,397
Residential real estate $ 1,990,784 2,038,351 2,094,813 2,149,363
Home equity $ 624,495 607,800 589,846 564,164
Other consumer $ 143,989 152,640 162,603 173,264
Net deferred costs and
discounts $ 33,321 33,895 34,106 34,980
------ ------ ------ ------
Total loans and
leases $ 6,463,775 6,421,478 6,438,793 6,348,168
Allowance for credit
losses $ 77,793 77,664 75,128 74,283
------ ------ ------ ------
Loans and leases,
net $ 6,385,982 6,343,814 6,363,665 6,273,885
Goodwill and other
intangibles $ 784,549 803,914 806,327 808,262
Total assets $ 9,331,372 9,008,383 9,074,502 9,067,701
Total interest-earning
assets $ 8,136,806 7,782,496 7,825,324 7,813,212
Deposits:
Savings $ 788,767 778,794 811,160 795,464
Interest-bearing
checking $ 485,220 521,206 505,656 509,121
Money market deposits $ 1,940,136 1,915,122 1,974,430 1,885,113
Noninterest-bearing $ 718,593 693,424 728,839 680,397
Certificates $ 2,010,897 1,908,174 2,138,148 2,367,176
--------- --------- --------- ---------
Total deposits $ 5,943,613 5,816,720 6,158,233 6,237,271
Borrowings $ 1,540,227 1,603,777 1,363,379 1,265,521
Total interest-bearing
liabilities $ 6,765,247 6,727,073 6,792,773 6,822,395
Net interest-earning
assets $ 1,371,559 1,055,423 1,032,551 990,817
Stockholders' equity $ 1,727,263 1,441,022 1,431,352 1,432,632
Tangible equity (1) $ 942,714 637,108 625,025 624,370
Unrealized gain (loss)
on securities $ (12,716) (11,132) (6,011) 5,853
Total loans serviced
for others $ 568,767 568,750 570,614 571,707
----------------------
ASSET QUALITY DATA
(Amounts in thousands)
----------------------
Nonperforming loans:
Commercial real estate $ 26,546 28,884 20,456 19,921
Commercial business $ 7,411 4,274 4,095 3,518
Specialized lending $ 4,354 4,205 3,430 2,872
Shared national credits $ - - - -
Residential real estate $ 5,516 5,167 4,957 5,113
Home equity $ 2,076 1,541 927 1,180
Other consumer $ 514 627 528 832
--- --- --- ---
Total nonperforming
loans $ 46,417 44,698 34,393 33,436
Real estate owned $ 2,001 2,782 1,414 976
----- ----- ----- ---
Total nonperforming
assets $ 48,418 47,480 35,807 34,412
Net loan charge-offs
(recoveries):
Commercial real estate $ 1,364 2,151 1,550 230
Commercial business $ 4,777 696 1,400 587
Specialized lending $ 1,193 647 813 879
Shared national credits $ - - - -
Residential real estate $ 32 - (34) 79
Home equity $ 177 (15) 23 2
Other consumer $ 328 485 303 177
--- --- --- ---
Total net loan
charge-offs $ 7,871 3,964 4,055 1,954
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2009
--------------------------------------
Year-to-Date Third Second First
Sept. 30 Quarter Quarter Quarter
------------ ------- ------- -------
------------------------
SELECTED OPERATIONS DATA
(Amounts in thousands)
------------------------
Interest income $ 345,401 128,788 110,794 105,819
Interest expense $ 93,904 29,866 30,849 33,189
------ ------ ------ ------
Net interest income $ 251,497 98,922 79,945 72,630
Provision for credit losses $ 32,650 15,000 8,900 8,750
------ ------ ----- -----
Net interest income after
provision $ 218,847 83,922 71,045 63,880
Noninterest income:
Banking services $ 32,522 12,499 10,053 9,970
Insurance and benefits
consulting $ 37,884 12,172 13,164 12,548
Wealth management services $ 5,900 1,848 1,834 2,218
Lending and leasing $ 7,174 2,950 2,240 1,984
Bank owned life insurance $ 3,931 1,301 1,321 1,309
Other $ 3,047 2,454 162 431
----- ----- --- ---
Total noninterest income $ 90,458 33,224 28,774 28,460
Noninterest expense:
Salaries and benefits $ 110,629 42,223 35,169 33,237
Occupancy and equipment $ 19,987 7,620 5,901 6,466
Technology and communications $ 16,499 6,095 5,351 5,053
Marketing and advertising $ 7,663 2,550 2,581 2,532
Professional services $ 3,990 1,481 1,300 1,209
Amortization of intangibles $ 6,004 2,266 1,847 1,891
FDIC premiums $ 12,333 3,854 6,980 1,499
Merger and acquisition
integration expenses $ 27,458 23,354 2,342 1,762
Other $ 27,389 11,277 6,614 9,498
------ ------ ----- -----
Total noninterest
expense $ 231,952 100,720 68,085 63,147
Income before income taxes $ 77,353 16,426 31,734 29,193
Income taxes $ 26,880 5,495 10,934 10,451
------ ----- ------ ------
Net income $ 50,473 10,931 20,800 18,742
Preferred stock dividend and
accretion $ 12,046 - 9,378 2,668
------ --- ----- -----
Net income available to
common stockholders $ 38,427 10,931 11,422 16,074
====== ====== ====== ======
2008
----------------------------------------------
Year Ended Fourth Third Second First
Dec. 31, Quarter Quarter Quarter Quarter
---------- ------- ------- ------- -------
------------------------
SELECTED OPERATIONS DATA
(Amounts in thousands)
-------------------------
Interest income $ 441,138 109,798 109,951 111,402 109,987
Interest expense $ 172,561 38,092 39,751 44,793 49,925
------- ------ ------ ------ ------
Net interest income $ 268,577 71,706 70,200 66,609 60,062
Provision for credit
losses $ 22,500 8,000 6,500 4,900 3,100
------ ----- ----- ----- -----
Net interest income
after provision $ 246,077 63,706 63,700 61,709 56,962
Noninterest income:
Banking services $ 40,082 10,427 10,390 9,955 9,310
Insurance and benefits
consulting $ 49,733 11,540 12,302 13,129 12,762
Wealth management
services $ 9,922 2,159 2,686 2,860 2,217
Lending and leasing $ 8,783 2,079 2,224 2,225 2,255
Bank owned life
insurance $ 5,449 1,723 1,294 1,255 1,177
Other $ 1,766 (285) 293 212 1,546
----- ---- --- --- -----
Total noninterest
income $ 115,735 27,643 29,189 29,636 29,267
Noninterest expense:
Salaries and benefits $ 133,785 33,018 33,914 33,812 33,041
Occupancy and equipment $ 23,823 6,199 5,744 5,723 6,157
Technology and
communications $ 19,849 5,188 4,971 4,924 4,766
Marketing and
advertising $ 10,496 3,076 2,639 2,458 2,323
Professional services $ 4,659 1,678 1,061 923 997
Amortization of
intangibles $ 8,824 2,218 2,146 2,209 2,251
FDIC premiums $ 1,265 391 384 246 244
Merger and acquisition
integration expenses $ 2,186 - - 139 2,047
Other $ 23,523 5,787 5,895 6,160 5,681
------ ----- ----- ----- -----
Total noninterest
expense $ 228,410 57,555 56,754 56,594 57,507
Income before income
taxes $ 133,402 33,794 36,135 34,751 28,722
Income taxes $ 44,964 10,988 12,395 11,672 9,909
------ ------ ------ ------ -----
Net income $ 88,438 22,806 23,740 23,079 18,813
Preferred stock dividend
and accretion $ 1,184 1,184 - - -
----- ----- --- --- ---
Net income available
to common stockholders $ 87,254 21,622 23,740 23,079 18,813
====== ====== ====== ====== ======
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2009
--------------------------------------------
Year-to-Date Third Second First
Sept. 30 Quarter Quarter Quarter
------------ ------- ------- -------
-------------------------
SELECTED AVERAGE BALANCES
(Amounts in thousands)
-------------------------
Securities, at amortized
cost $ 2,760,564 4,131,996 2,433,236 1,689,620
Loans (2)
Commercial:
Real estate $ 2,643,337 2,748,701 2,616,106 2,563,165
Business $ 1,008,214 1,091,131 975,510 956,523
Specialized lending $ 188,259 198,944 183,346 182,305
------- ------- ------- -------
Total commercial loans $ 3,839,810 4,038,776 3,774,962 3,701,993
Residential $ 1,873,195 1,778,591 1,875,498 1,967,570
Home equity $ 649,891 663,220 649,832 636,325
Other consumer $ 143,373 149,321 136,394 144,349
------- ------- ------- -------
Total loans $ 6,506,269 6,629,908 6,436,686 6,450,237
Total interest-earning
assets $ 9,395,637 10,955,269 8,976,840 8,224,796
Goodwill and other
intangibles $ 792,146 810,946 781,718 783,473
Total assets $ 10,689,982 12,343,848 10,257,168 9,436,987
Interest-bearing
liabilities:
Savings accounts $ 803,414 837,852 797,431 774,262
Checking $ 558,534 676,786 510,064 486,663
Money market deposits $ 2,399,352 2,783,435 2,323,823 2,083,102
Certificates of deposit $ 2,013,790 2,113,778 1,914,353 2,012,120
Borrowed funds $ 2,089,621 2,900,715 1,845,462 1,507,374
--------- --------- --------- ---------
Total interest-bearing
liabilities $ 7,864,711 9,312,566 7,391,133 6,863,521
Noninterest-bearing
deposits $ 783,192 914,407 743,102 689,596
Total deposits $ 6,558,282 7,326,258 6,288,773 6,045,743
Total liabilities $ 8,808,651 10,404,030 8,291,365 7,700,851
Net interest-earning
assets $ 1,530,926 1,642,703 1,585,707 1,361,275
Stockholders' equity $ 1,881,331 1,939,818 1,965,803 1,736,136
Tangible equity (1) $ 1,089,185 1,128,872 1,184,085 952,663
2008
------------------------------------------------------
Year Ended Fourth Third Second First
Dec. 31, Quarter Quarter Quarter Quarter
---------- ------- ------- ------- -------
----------------
SELECTED AVERAGE
BALANCES
(Amounts in
thousands)
----------------
Securities, at
amortized cost $ 1,327,183 1,398,235 1,265,630 1,335,744 1,309,020
Loans (2)
Commercial:
Real estate $ 2,432,981 2,517,850 2,477,054 2,434,075 2,301,529
Business $ 880,222 928,052 906,773 890,154 795,092
Specialized
lending $ 187,311 189,244 189,867 183,469 186,616
------- ------- ------- ------- -------
Total
commercial
loans $ 3,500,514 3,635,146 3,573,694 3,507,698 3,283,237
Residential $ 2,074,277 2,023,596 2,078,863 2,131,922 2,063,235
Home equity $ 589,721 626,031 608,610 581,834 541,804
Other consumer $ 161,096 153,188 161,074 173,426 156,784
------- ------- ------- ------- -------
Total loans $ 6,325,608 6,437,961 6,422,241 6,394,880 6,045,060
Total interest-
earning assets $ 7,735,545 7,939,383 7,768,427 7,805,792 7,425,978
Goodwill and
other
intangibles $ 794,915 802,275 804,886 807,034 765,275
Total assets $ 8,963,141 9,148,625 8,991,899 9,115,902 8,593,783
Interest-bearing
liabilities:
Savings
accounts $ 790,707 772,359 802,900 804,834 782,804
Checking $ 486,789 486,166 498,065 494,395 468,411
Money market
deposits $ 1,899,010 1,944,965 1,963,454 1,932,942 1,753,468
Certificates
of deposit $ 2,106,481 1,958,090 1,985,925 2,249,847 2,235,016
Borrowed funds $ 1,372,314 1,526,141 1,444,923 1,309,847 1,205,857
--------- --------- --------- --------- ---------
Total interest-
bearing
liabilities $ 6,655,301 6,687,721 6,695,267 6,791,865 6,445,556
Noninterest-
bearing
deposits $ 687,741 707,300 726,852 688,403 627,762
Total deposits $ 5,970,728 5,868,880 5,977,196 6,170,421 5,867,461
Total
liabilities $ 7,486,817 7,514,116 7,554,117 7,679,743 7,198,252
Net interest-
earning assets $ 1,080,244 1,251,662 1,073,160 1,013,927 980,422
Stockholders'
equity $ 1,476,324 1,634,510 1,437,782 1,436,159 1,395,531
Tangible
equity (1) $ 681,409 832,235 632,896 629,125 630,256
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2009
--------------------------------------
Year-to-Date Third Second First
Sept. 30 Quarter Quarter Quarter
------------ ------- ------- -------
--------------------------------
STOCK AND RELATED PER SHARE DATA
--------------------------------
Earnings per share:
Basic $ 0.29 0.07 0.08 0.14
Diluted $ 0.29 0.07 0.08 0.14
Cash dividends $ 0.42 0.14 0.14 0.14
Dividend payout ratio 144.83% 200.00% 175.00% 100.00%
Dividend yield (annualized) 4.55% 4.50% 4.92% 5.21%
Market price (NASDAQ: FNFG - News):
High $ 16.32 14.06 14.23 16.32
Low $ 9.48 10.73 10.53 9.48
Close $ 12.33 12.33 11.42 10.89
Common shares outstanding 188,151 149,763 118,687
Treasury shares 6,659 6,706 6,732
Weighted average common shares
outstanding (3):
Basic 134,022 146,834 139,827 115,055
Diluted 134,386 147,184 140,165 115,433
---------------
SELECTED RATIOS
---------------
Return on average assets 0.63% 0.35% 0.81% 0.81%
Common equity:
Return on average equity 2.88% 2.24% 2.47% 4.18%
Return on average tangible
equity (1) 5.17% 3.84% 4.26% 8.40%
Total equity:
Return on average equity 3.59% 2.24% 4.24% 4.38%
Return on average tangible
equity (1) 6.20% 3.84% 7.05% 7.98%
Noninterest income as a percentage
of net revenue 26.5% 25.1% 26.5% 28.2%
Efficiency ratio - Consolidated 67.8% 76.2% 62.6% 62.5%
- Banking segment (4) 65.5% 74.9% 59.6% 59.0%
Net loan charge-offs 27,366 14,465 5,971 6,930
Net charge-offs to average loans
(annualized) 0.56% 0.87% 0.37% 0.44%
Total nonperforming loans to loans 0.93% 0.81% 0.81%
Total nonperforming assets to assets 0.54% 0.50% 0.56%
Allowance to loans 1.15% 1.28% 1.23%
Allowance to nonperforming loans 124.4% 157.8% 153.3%
Provision to average loans
(annualized) 0.67% 0.90% 0.55% 0.55%
Personnel FTE 2,672 2,034 1,958
Number of branches 170 113 113
-------
CAPITAL
-------
First Niagara Bank:
Tier 1 risk based capital 10.92% 11.02% 11.53%
Total risk based capital 11.96% 12.21% 12.77%
Tier 1 (core) capital 6.67% 7.13% 8.48%
Tangible capital 6.67% 7.13% 8.48%
Consolidated:
Equity to assets 16.86% 16.57% 18.17%
Tangible common equity to
tangible assets (1) 10.95% 10.54% 8.89%
Tangible equity to tangible
assets (1) 10.95% 10.54% 10.90%
Book value per share (3) 12.90 13.11 15.12
Tangible book value per share (1)(3) 7.82 7.77 8.33
2008
----------------------------------------------
Year Ended Fourth Third Second First
Dec. 31, Quarter Quarter Quarter Quarter
---------- ------- ------- ------- -------
----------------------
STOCK AND RELATED PER
SHARE DATA
----------------------
Earnings per share:
Basic $ 0.81 0.19 0.22 0.22 0.18
Diluted $ 0.81 0.19 0.22 0.22 0.18
Cash dividends $ 0.56 0.14 0.14 0.14 0.14
Dividend payout ratio 69.14% 73.68% 63.64% 63.64% 77.78%
Dividend yield (annualized) 3.46% 3.44% 3.54% 4.38% 4.14%
Market price (NASDAQ: FNFG - News):
High $ 22.38 16.45 22.38 15.00 14.15
Low $ 9.98 11.00 11.68 12.60 9.98
Close $ 16.17 16.17 15.75 12.86 13.59
Common shares outstanding 118,562 109,992 109,722 109,703
Treasury shares 6,858 15,427 15,697 15,718
Weighted average common
shares outstanding (3):
Basic 107,531 114,870 106,075 105,884 103,230
Diluted 108,174 115,626 106,795 106,523 103,641
---------------
SELECTED RATIOS
---------------
Return on average assets 0.99% 0.99% 1.05% 1.02% 0.88%
Common equity:
Return on average equity 5.99% 5.53% 6.57% 6.46% 5.42%
Return on average
tangible equity (1) 13.19% 11.41% 14.92% 14.75% 12.01%
Total equity:
Return on average equity 5.99% 5.55% 6.57% 6.46% 5.42%
Return on average
tangible equity (1) 12.98% 10.90% 14.92% 14.75% 12.01%
Noninterest income as a
percentage of net revenue 30.1% 27.8% 29.4% 30.8% 32.8%
Efficiency ratio
- Consolidated 59.4% 57.9% 57.1% 58.8% 64.4%
- Banking segment (4) 55.3% 52.6% 52.2% 54.2% 60.0%
Net loan charge-offs 17,844 7,871 3,964 4,055 1,954
Net charge-offs to
average loans (annualized) 0.28% 0.49% 0.25% 0.26% 0.13%
Total nonperforming loans
to loans 0.72% 0.70% 0.53% 0.53%
Total nonperforming assets
to assets 0.52% 0.53% 0.39% 0.38%
Allowance to loans 1.20% 1.21% 1.17% 1.17%
Allowance to nonperforming
loans 167.6% 173.8% 218.4% 222.2%
Provision to average loans
(annualized) 0.36% 0.49% 0.40% 0.31% 0.21%
Personnel FTE 1,909 1,910 1,892 1,903
Number of branches 114 114 114 115
-------
CAPITAL
-------
First Niagara Bank:
Tier 1 risk based capital 11.48% 10.05% 10.08% 9.84%
Total risk based capital 12.72% 11.30% 11.30% 11.06%
Tier 1 (core) capital 8.47% 7.58% 7.61% 7.29%
Tangible capital 8.47% 7.58% 7.61% 7.29%
Consolidated:
Equity to assets 18.51% 16.00% 15.77% 15.80%
Tangible common equity to
tangible assets (1) 8.96% 7.77% 7.56% 7.56%
Tangible equity to tangible
assets (1) 11.03% 7.77% 7.56% 7.56%
Book value per share (3) 15.02 13.55 13.51 13.54
Tangible book value per
share (1)(3) 8.20 5.99 5.90 5.90
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2009
--------------------------------------
Year-to-Date Third Second First
Sept. 30 Quarter Quarter Quarter
------------ ------- ------- -------
-----------------------------
SELECTED AVERAGE YIELDS/RATES
(Tax equivalent basis)
-----------------------------
Securities, at amortized cost 4.01% 3.80% 3.99% 4.59%
Loans
Commercial:
Real Estate 5.80% 5.85% 5.78% 5.77%
Business 4.35% 4.16% 4.48% 4.43%
Specialized lending 6.73% 6.74% 6.81% 6.63%
---- ---- ---- ----
Total commercial loans 5.47% 5.44% 5.50% 5.47%
Residential 5.30% 5.29% 5.24% 5.37%
Home equity 5.04% 4.97% 5.01% 5.14%
Other consumer 7.76% 8.10% 7.57% 7.58%
---- ---- ---- ----
Total loans 5.43% 5.41% 5.42% 5.45%
Total interest-earning assets 4.97% 4.74% 5.00% 5.24%
Savings accounts 0.24% 0.24% 0.24% 0.24%
Interest-bearing checking 0.15% 0.14% 0.15% 0.16%
Money market deposits 1.13% 0.93% 1.18% 1.36%
Certificates of deposit 2.24% 1.68% 2.41% 2.68%
Borrowed funds 2.41% 1.85% 2.57% 3.29%
---- ---- ---- ----
Total interest-bearing liabilities 1.59% 1.27% 1.67% 1.96%
Tax equivalent net interest rate
spread 3.38% 3.47% 3.33% 3.28%
Tax equivalent net interest rate
margin 3.63% 3.66% 3.63% 3.61%
2008
----------------------------------------------
Year Ended Fourth Third Second First
Dec. 31, Quarter Quarter Quarter Quarter
---------- ------- ------- ------- -------
------------------------
SELECTED AVERAGE YIELDS/
RATES
(Tax equivalent basis)
------------------------
Securities, at amortized
cost 4.92% 4.72% 4.95% 5.04% 5.00%
Loans
Commercial:
Real Estate 6.27% 6.21% 6.15% 6.27% 6.48%
Business 5.65% 5.07% 5.52% 5.64% 6.50%
Specialized lending 7.41% 6.85% 7.20% 7.72% 7.89%
---- ---- ---- ---- ----
Total commercial loans 6.18% 5.95% 6.05% 6.19% 6.56%
Residential 5.55% 5.54% 5.53% 5.52% 5.60%
Home equity 5.86% 5.53% 5.65% 5.84% 6.50%
Other consumer 7.46% 7.68% 7.44% 7.25% 7.49%
---- ---- ---- ---- ----
Total loans 5.97% 5.82% 5.88% 5.96% 6.25%
Total interest-earning assets 5.78% 5.59% 5.72% 5.81% 6.03%
Savings accounts 0.28% 0.25% 0.26% 0.27% 0.33%
Interest-bearing checking 0.28% 0.23% 0.27% 0.30% 0.33%
Money market deposits 2.29% 1.91% 2.10% 2.27% 2.98%
Certificates of deposit 3.40% 2.82% 2.95% 3.55% 4.16%
Borrowed funds 3.91% 3.67% 3.78% 4.02% 4.26%
---- ---- ---- ---- ----
Total interest-bearing
liabilities 2.59% 2.26% 2.36% 2.65% 3.11%
Tax equivalent net interest
rate spread 3.19% 3.33% 3.36% 3.16% 2.92%
Tax equivalent net interest
rate margin 3.55% 3.68% 3.68% 3.50% 3.33%
(1) Excludes goodwill and other intangible assets. These are non-GAAP
financial measures that we believe provide investors with
information that is useful in understanding our financial
performance and position.
(2) Includes nonaccrual loans.
(3) Excludes unallocated ESOP shares and unvested restricted stock
shares.
(4) Includes operating results for the banking activities segment as
defined in the Company's quarterly and annual reports.
Related Headlines
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- FIRST NIAGARA FINANCIAL GROUP INC Files SEC form 8-K/A, Completion of Acquisition or Disposition of Assets - EDGAR Online
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