First Niagara Financial (FNFG) 8-K First Niagara Financial Group Reports 2007 Fourth Quarter Results

FIRST NIAGARA FINANCIAL GROUP REPORTS 2007 FOURTH QUARTER RESULTS

Lockport, N.Y. – January 31, 2008 –

· 2007— A year of transition and accomplishment

· Commercial loan growth continues at double-digit rate

· Credit quality well controlled

· Branch sales and investment securities repositioning completed in Q4

First Niagara Financial Group, Inc. (NASDAQ: FNFG), today announced 2007 fourth quarter net income of $27.8 million, or $0.27 per diluted share. This compares to 2007 third quarter net income of $21.1 million, or $0.21 per diluted share and $20.9 million, or $0.19 per diluted share for the 2006 fourth quarter. Net income from operations for the fourth quarter, as referenced in the table below, was $19.6 million, or $0.19 per diluted share. This compares to 2007 third quarter net income from operations of $21.1 million, or $0.21 per diluted share and $23.1 million, or $0.21 per diluted share for the 2006 fourth quarter. 2007 net income was $84.1 million, or $0.81 per diluted share. This compares to 2006 net income of $91.9 million, or $0.85 per diluted share. 2007 net income from operations was $82.3 million, or $0.80 per diluted share. This compares to 2006 net income from operations of $92.6 million, or $0.86 per diluted share.

Reported Results (including non-recurring gains and losses, severance and related costs)

	Q4 2007		Q3 2007		Q4 2006		2007		2006
Net interest income	$	55.2	$	55.7	$	59.5	$	224.2	$	246.5
Provision for credit losses		2.5		2.1		1.3		8.5		6.5
Noninterest income		43.8		29.7		27.9		131.8		111.2
Noninterest expense		55.6		51.9		54.8		222.5		211.9
Net income		27.8		21.1		20.9		84.1		91.9
Net income per diluted share	$	0.27	$	0.21	$	0.19	$	0.81	$	0.85

Non-GAAP/ Operating Results (excluding non-recurring gains and losses, severance and related costs)

	Q4 2007		Q3 2007		Q4 2006		2007		2006
Net interest income	$	55.2	$	55.7	$	59.5	$	224.2	$	244.3
Provision for credit losses		2.5		2.1		1.3		8.5		6.5
Noninterest income		27.9		29.7		27.9		115.9		108.2
Noninterest expense		53.3		51.9		51.5		210.3		205.6
Net income		19.6		21.1		23.1		82.3		92.6
Net income per diluted share	$	0.19	$	0.21	$	0.21	$	0.80	$	0.86

All amounts in millions except net income per diluted share

The table above summarizes the Company’s operating results excluding certain non-recurring gains and losses, severance and related costs. (Q4 2007: gain on branch sales of $21.6 million, investment portfolio restructuring loss of $5.6 million and a branch deposit loss of $2.3 million, Q4 2006: severance and related costs of $3.3 million) The Company believes these 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 assess performance in relation to the Company’s ongoing operations.

John R. Koelmel, President and CEO, said “From a franchise point of view, we exited 2007 in far better shape than we entered. We are leaner, much better focused around our competitive strengths and better positioned for long term success. The pending Greater Buffalo Savings Bank acquisition will bring us critical market share growth in Western New York and we eagerly anticipate its integration and expected financial benefits.  We have accomplished much in as challenging an operating environment as the industry has experienced in recent years. We are managing our resources in a disciplined manner, especially regarding credit, and our conviction to long term success has never been stronger as we are poised to capitalize on all the steps we’ve taken over the past year.”

Chief Financial Officer, Michael W. Harrington, added, “Fourth quarter results reflect the constrained revenue environment impacting our industry as well as encouraging growth in areas of emphasis for us. Commercial services continued generating excellent loan and deposit growth and our vigilance towards credit continues to keep us in good stead as nonperforming assets declined this quarter and net charge-offs remained well within historical levels. Consistent with our actions throughout the year to improve long-term performance, we completed a repositioning of our securities portfolio that will immediately benefit net interest income. We also finalized our previously announced branch sales, part of our overall program to improve operating efficiency.”

Loans

Average commercial loan balances increased 16% annualized from the linked quarter. Commercial business loans grew by over 24% annualized while commercial real estate posted its best quarterly increase in over a year. Compared to the fourth quarter of 2006, commercial business loan balances were higher by 27% and reflected the benefits of a key strategy to support commercial services growth. Home equity average balances maintained their momentum and finished the year 12% above 2006 levels. The residential mortgage portfolio declined on average in the fourth quarter as $164 million of loans were securitized at the end of the third quarter and are now held in the Bank’s securities available for sale portfolio.

Deposits

Average deposit balances were slightly lower from the linked quarter primarily due to the completed sale of nine branches and $149 million in deposits to Elmira Savings Bank and Legacy Bancorp. The migration of savings balances to higher yielding money market accounts continued in the fourth quarter. The decline of $118 million in CD balances for the quarter reflected the decision to use lower cost borrowings as an alternative funding source. Municipal money market deposits grew by $134 million due to seasonal inflows from school district relationships. Current quarter average deposits increased by $46 million from a year ago as the addition of new business checking account relationships and school district customers emphasize the success of the Company’s commercial deposit gathering strategy.

Credit Quality

The overall loan portfolio continues to be free of any systemic weakness and has no exposure to subprime or Alt-A loans. Non-performing loans decreased by $1.1 million or 4% from the third quarter and represent 0.49% of total loans at period end. Net charge-offs for the quarter increased by $1.1 million to $3.2 million or 0.22% of average loans. The provision for credit losses was $2.5 million for the quarter, compared to $2.1 million in the prior quarter and $1.3 million a year ago. At December 31, 2007 the allowance for credit losses represented 1.23% of total loans or 250% of non-performing loans at year-end.

Net Interest Income

Net interest income was $0.5 million or 1% below last quarter as various indexed loan assets repriced more quickly than interest-bearing deposits in response to the Federal Reserve’s interest rate cuts. Downward pressure on the margin was also exerted by the ongoing migration from savings to money market balances, although this dynamic was mitigated somewhat by the decision to pursue lower cost borrowings in lieu of matching competitively priced CD's offered in the marketplace. The net result of these factors reduced the tax equivalent net interest margin by 5 basis points to 3.25% for the fourth quarter and produced a full year margin of 3.33%.

Noninterest Income

Operating (Non-GAAP) noninterest income for the current quarter was $1.8 million below last quarter’s level due to the continuing industry-wide softening in insurance renewal rates and seasonal reductions in wealth management fees. Operating noninterest income for 2007 increased by $7.7 million to $115.9 million or 7% over 2006. This increase was lead by growth in risk management services, greater productivity of wealth management consultants, higher fees from electronic banking services and stronger leasing and loan activity.

Noninterest income (GAAP) in the fourth quarter included a gain of $21.6 million from the sale of branches to Elmira Savings Bank and Legacy Bancorp. The Company also sold $199 million of shorter duration, lower yielding mortgage backed securities and reinvested in higher yielding, longer duration securities with AAA credit quality characteristics. While a $5.6 million loss on this sale is included in other noninterest income, an immediate benefit to net interest income is expected as a result of reinvestment of the sales proceeds.

Noninterest Expense

Operating (Non-GAAP) noninterest expense for the current quarter increased by 3% compared to the previous quarter primarily due to marketing costs related to the Bank’s statewide branding campaign. Higher employee health care costs for 2007, recognized in the fourth quarter, were offset by lower salary expense due to a 5% reduction in staff levels from a year ago. Other noninterest expense (GAAP) includes a $2.3 million loss resulting from a business customer’s deposit relationship.

Capital

The Company repurchased 815 thousand shares of its common stock for the three months ended December 31, bringing full year repurchases to 7.0 million or 7% of outstanding shares. The tangible common equity ratio of 8.2% at December 31 remains well above the Company’s targeted level.

Dividend

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’s level and 8% above a year ago. The dividend is payable on February 26, 2008 to stockholders of record on February 12, 2008.

Profile - First Niagara Financial Group, Inc., through its wholly owned subsidiary First Niagara Bank, has assets of $8.1 billion and deposits of $5.5 billion. First Niagara Bank is a full-service, community-focused bank that provides financial services to individuals, families and businesses through 110 branches and four Regional Market Centers across Upstate New York.

Conference Call - A conference call will be held at 11 a.m. Eastern Time on Thursday, January 31, 2008 to discuss the Company’s financial results as well as the Company’s strategy and future outlook. Those wishing to participate in the call may dial toll-free 1-877-709-8150. A replay of the call will be available until February 14, 2008 by dialing 1-877-660-6853, replay number 240, conference ID 267847.

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.

Officer Contacts
John R. Koelmel	President and Chief Executive Officer
Michael W. Harrington	Chief Financial Officer and Treasurer
Anthony M. Alessi	Investor Relations Manager
	(716) 625-7692
	tony.alessi@fnfg.com
Leslie G. Garrity	Public Relations and Corporate Communications Manager
	(716) 625-7528
	leslie.garrity@fnfg.com

First Niagara Financial Group, Inc.

Summary of Quarterly Financial Data

	2007												2006
	December 31,			September 30,			June 30,			March 31,			December 31,			September 30,			June 30,			March 31,
SELECTED FINANCIAL DATA
(Amounts in thousands)
Securities available for sale	$	1,217,164			1,262,193			1,070,842			1,095,012			1,060,422			1,204,048			1,317,035			1,489,402
Loans and leases:
Commercial:
Real estate	$	2,195,009			2,150,885			2,098,245			2,065,472			2,034,709			2,037,311			1,995,287			1,904,305
Business	$	730,029			667,512			651,758			611,064			561,323			546,976			529,627			504,935
Total commercial loans	$	2,925,038			2,818,397			2,750,003			2,676,536			2,596,032			2,584,287			2,524,914			2,409,240
Residential real estate	$	1,955,690			1,998,411			2,190,984			2,224,704			2,252,473			2,254,294			2,245,795			2,209,518
Home equity	$	503,779			507,834			498,200			472,714			470,714			463,773			446,562			418,719
Other consumer	$	127,169			135,697			134,282			151,885			163,824			178,131			180,041			182,367
Specialized lending	$	183,747			188,684			186,856			163,319			155,032			156,281			177,375			164,552
Net deferred costs and discounts	$	29,529			29,531			29,962			27,747			27,350			26,217			24,617			21,927
Total loans and leases	$	5,724,952			5,678,554			5,790,287			5,716,905			5,665,425			5,662,983			5,599,304			5,406,323
Allowance for credit losses	$	70,247			70,970			71,102			71,051			71,913			72,697			72,662			72,441
Loans and leases, net	$	5,654,705			5,607,584			5,719,185			5,645,854			5,593,512			5,590,286			5,526,642			5,333,882
Goodwill and other intangibles	$	750,071			753,336			750,732			753,296			748,103			752,256			755,118			757,738
Total assets	$	8,096,228			8,114,960			8,020,806			7,982,589			7,945,526			8,011,500			8,106,776			8,079,957
Total interest-earning assets	$	6,994,022			7,007,391			6,938,584			6,903,315			6,837,367			6,934,014			7,043,036			7,016,550
Deposits:
Savings	$	786,759			844,576			906,852			936,496			962,482			1,002,389			1,072,017			1,114,004
Interest-bearing checking	$	468,165			499,058			502,925			511,169			521,751			519,194			513,382			519,158
Money market deposits	$	1,607,137			1,437,272			1,372,358			1,394,016			1,294,834			1,229,209			1,189,810			1,138,526
Noninterest-bearing	$	631,801			658,012			656,195			623,504			647,108			628,321			628,478			584,820
Certificates	$	2,055,122			2,266,535			2,317,116			2,333,891			2,283,561			2,202,361			2,245,620			2,169,837
Total deposits	$	5,548,984			5,705,453			5,755,446			5,799,076			5,709,736			5,581,474			5,649,307			5,526,345
Borrowings	$	1,094,981			947,055			797,574			716,463			747,554			919,398			990,463			1,082,410
Total interest-bearing liabilities	$	6,012,164			5,994,496			5,896,825			5,892,035			5,810,182			5,872,551			6,011,292			6,023,935
Net interest-earning assets	$	981,858			1,012,895			1,041,759			1,011,280			1,027,185			1,061,463			1,031,744			992,615
Stockholders' equity	$	1,353,179			1,332,313			1,329,063			1,353,792			1,387,197			1,383,878			1,360,926			1,367,385
Tangible equity (1)	$	603,108			578,977			578,331			600,496			639,094			631,622			605,808			609,647
Securities available for sale fair value adjustment included in stockholders' equity	$	(24	)		(10,039	)		(15,433	)		(11,161	)		(14,150	)		(15,671	)		(25,189	)		(22,562	)
Common shares outstanding (2)		100,919		��	101,357			102,139			103,991			106,753			106,701			106,528			107,721
Treasury shares		15,274			14,674			13,835			11,925			9,326			9,250			9,549			8,276
Total loans serviced for others	$	553,631			554,934			392,597			398,166			393,831			385,107			377,150			378,665
CAPITAL
Tier 1 risk based capital		10.10	%		10.40	%		10.36	%		10.69	%		10.91	%		12.63	%		11.40	%		11.23	%
Total risk based capital		11.35	%		11.65	%		11.61	%		11.94	%		12.16	%		13.86	%		12.65	%		12.48	%
Tier 1 (core) capital		7.54	%		7.68	%		7.73	%		7.75	%		7.73	%		8.99	%		7.92	%		7.57	%
Tangible capital		7.54	%		7.68	%		7.73	%		7.75	%		7.73	%		8.99	%		7.92	%		7.57	%
Equity to assets		16.71	%		16.42	%		16.57	%		16.96	%		17.46	%		17.27	%		16.79	%		16.92	%
Tangible equity to tangible assets(1)		8.21	%		7.86	%		7.95	%		8.31	%		8.88	%		8.70	%		8.24	%		8.33	%
Book value per share (2)	$	13.41			13.14			13.01			13.02			12.99			12.97			12.78			12.69
Tangible book value per share (1)(2)	$	5.98			5.71			5.66			5.77			5.99			5.92			5.69			5.66
ASSET QUALITY DATA
(Amounts in thousands)
Non-performing loans:
Commercial real estate	$	16,229			18,169			9,869			6,937			4,513			7,196			7,482			8,122
Commercial business	$	3,430			2,718			5,546			5,653			2,599			2,960			2,458			3,074
Residential real estate	$	3,741			3,836			4,425			3,713			4,490			3,450			3,904			4,905
Home equity	$	849			545			836			1,088			819			667			620			678
Other consumer	$	885			1,307			1,232			1,816			1,356			633			592			742
Specialized lending	$	2,920			2,596			2,283			1,880			1,751			2,225			2,473			3,089
Total non-performing loans	$	28,054			29,171			24,191			21,087			15,528			17,131			17,529			20,610
Real estate owned	$	237			244			169			553			632			659			1,039			986
Total non-performing assets	$	28,291			29,415			24,360			21,640			16,160			17,790			18,568			21,596
Net loan charge-offs	$	3,223			2,150			2,249			2,462			2,085			1,264			1,335			2,200
Net charge-offs to average loans (annualized)		0.22	%		0.15	%		0.16	%		0.18	%		0.15	%		0.09	%		0.10	%		0.17	%
Provision for credit losses	$	2,500			2,100			2,300			1,600			1,300			1,300			1,556			2,300
Provision for credit losses as a   percentage of average loans (annualized)		0.17	%		0.14	%		0.16	%		0.11	%		0.09	%		0.09	%		0.11	%		0.18	%
Total non-performing loans to total loans		0.49	%		0.51	%		0.42	%		0.37	%		0.27	%		0.30	%		0.31	%		0.38	%
Total non-performing assets as a   percentage of total assets		0.35	%		0.36	%		0.30	%		0.27	%		0.20	%		0.22	%		0.23	%		0.27	%
Allowance for credit losses to total loans		1.23	%		1.25	%		1.23	%		1.24	%		1.27	%		1.28	%		1.30	%		1.34	%
Allowance for credit losses   to non-performing loans		250.4	%		243.3	%		293.9	%		336.9	%		463.1	%		424.4	%		414.5	%		351.5	%
Personnel FTE		1,824			1,840			1,884			1,915			1,922			1,891			1,939			1,958
Number of branches		110			120			121			119			119			119			122			120

First Niagara Financial Group, Inc.

Summary of Quarterly Financial Data (Cont'd)

	2007															2006
	Year Ended			Fourth			Third			Second			First			Year Ended			Fourth			Third			Second			First
	December 31			Quarter			Quarter			Quarter			Quarter			December 31,			Quarter			Quarter			Quarter			Quarter
SELECTED OPERATIONS DATA
(Amounts in thousands)
Interest income	$	422,772			107,120			106,911			105,543			103,198			415,830			106,163			105,026			104,011			100,630
Interest expense	$	198,594			51,913			51,206			48,477			46,998			169,349			46,697			44,400			40,175			38,077
Net interest income	$	224,178			55,207			55,705			57,066			56,200			246,481			59,466			60,626			63,836			62,553
Provision for credit losses	$	8,500			2,500			2,100			2,300			1,600			6,456			1,300			1,300			1,556			2,300
Net interest income after provision for credit losses	$	215,678			52,707			53,605			54,766			54,600			240,025			58,166			59,326			62,280			60,253
Noninterest income:
Banking services	$	39,289			10,112			10,071			10,111			8,995			38,661			9,766			9,861			9,983			9,051
Risk management services	$	46,623			10,194			12,144			12,581			11,704			44,133			10,753			10,855			11,705			10,820
Employee benefits administration	$	4,520			1,242			1,074			1,010			1,194			4,002			1,172			1,012			923			895
Wealth management services	$	9,997			2,374			2,539			2,763			2,321			8,334			1,938			1,990			2,133			2,273
Lending and leasing	$	8,880			2,604			2,191			2,181			1,904			7,238			1,914			1,608			1,969			1,747
Bank-owned life insurance	$	4,848			1,088			1,144			1,561			1,055			3,162			885			774			756			747
Other	$	17,654			16,211			567			137			739			5,688			1,475			3,502			333			378
Total noninterest income	$	131,811			43,825			29,730			30,344			27,912			111,218			27,903			29,602			27,802			25,911
Noninterest expense:
Salaries and benefits	$	125,697			30,269			30,159			32,377			32,892			123,795			32,346			31,436			30,411			29,602
Occupancy and equipment	$	28,550			5,540			5,544			11,484			5,982			22,147			5,695			5,538			5,241			5,673
Technology and communications	$	19,456			4,942			4,770			4,905			4,839			20,303			5,083			5,117			5,109			4,994
Marketing and advertising	$	8,362			2,632			2,121			1,921			1,688			7,154			1,800			1,775			1,792			1,787
Professional services	$	4,392			1,182			1,243			1,158			809			3,921			1,060			929			1,069			863
Amortization of intangibles	$	10,433			2,533			2,570			2,639			2,691			11,802			2,838			2,890			2,994			3,080
Other	$	25,576			8,489			5,541			5,806			5,740			22,729			5,953			5,410			5,456			5,910
Total noninterest expense	$	222,466			55,587			51,948			60,290			54,641			211,851			54,775			53,095			52,072			51,909
Income before income taxes	$	125,023			40,945			31,387			24,820			27,871			139,392			31,294			35,833			38,010			34,255
Income taxes	$	40,938			13,108			10,284			8,209			9,337			47,533			10,398			12,275			13,212			11,647
Net income	$	84,085			27,837			21,103			16,611			18,534			91,859			20,896			23,558			24,798			22,608
STOCK AND RELATED PER SHARE DATA
Net income per share:
Basic	$	0.82			0.27			0.21			0.16			0.18			0.86			0.20			0.22			0.23			0.21
Diluted	$	0.81			0.27			0.21			0.16			0.17			0.85			0.19			0.22			0.23			0.21
Cash dividends	$	0.54			0.14			0.14			0.13			0.13			0.46			0.12			0.12			0.11			0.11
Dividend payout ratio		65.85	%		51.85	%		66.67	%		81.25	%		72.22	%		53.49	%		60.00	%		54.55	%		47.83	%		52.38	%
Dividend yield (annualized)		4.49	%		4.61	%		3.93	%		3.98	%		3.79	%		3.10	%		3.20	%		3.26	%		3.15	%		3.04	%
Market price (NASDAQ: FNFG):
High	$	15.13			15.13			14.60			14.28			15.07			15.43			15.43			15.20			14.74			15.16
Low	$	11.15			11.15			11.49			12.88			13.53			13.38			13.89			13.54			13.44			13.38
Close	$	12.04			12.04			14.15			13.10			13.91			14.86			14.86			14.62			14.02			14.66
SELECTED RATIOS
Net income (annualized):
Return on average assets		1.05	%		1.36	%		1.04	%		0.84	%		0.95	%		1.14	%		1.04	%		1.16	%		1.23	%		1.14	%
Return on average equity		6.24	%		8.26	%		6.31	%		4.93	%		5.47	%		6.67	%		5.96	%		6.79	%		7.27	%		6.67	%
Return on average tangible equity (1)		14.12	%		18.87	%		14.56	%		11.09	%		12.10	%		14.75	%		12.93	%		15.02	%		16.28	%		14.88	%
Noninterest income as a percentage of net revenue		37.03	%		44.25	%		34.80	%		34.71	%		33.18	%		31.09	%		31.94	%		32.81	%		30.34	%		29.29	%
Efficiency ratio - Consolidated		62.5	%		56.1	%		60.8	%		69.0	%		65.0	%		59.2	%		62.7	%		58.8	%		56.8	%		58.7	%
- Banking segment (3)		58.6	%		50.6	%		57.0	%		68.6	%		61.7	%		54.5	%		59.5	%		54.1	%		50.6	%		53.9	%
Net loan charge-offs	$	10,084			3,223			2,150			2,249			2,462			6,884			2,085			1,264			1,335			2,200
Net charge-offs to average loans (annualized)		0.18	%		0.22	%		0.15	%		0.16	%		0.18	%		0.12	%		0.15	%		0.09	%		0.10	%		0.17	%
Provision for credit losses as a   percentage of average loans (annualized)		0.15	%		0.17	%		0.14	%		0.16	%		0.11	%		0.12	%		0.09	%		0.09	%		0.11	%		0.18	%

First Niagara Financial Group, Inc.

Summary of Quarterly Financial Data (Cont'd)

	2007															2006
	Year-to-Date			Fourth			Third			Second			First			Year Ended			Fourth			Third			Second			First
	December 31			Quarter			Quarter			Quarter			Quarter			December 31,			Quarter			Quarter			Quarter			Quarter
SELECTED AVERAGE BALANCES
(Amounts in thousands)
Securities, at amortized cost	$	1,135,221			1,251,346			1,112,741			1,089,189			1,086,037			1,377,191			1,159,180			1,299,108			1,463,333			1,592,764
Loans (4)
Commercial:
Real estate	$	2,101,431			2,185,998			2,112,119			2,068,315			2,037,544			1,965,832			2,037,440			2,016,806			1,936,790			1,869,891
Business	$	639,580			692,448			652,751			631,884			579,853			521,354			546,023			539,824			520,368			478,253
Total commercial loans	$	2,741,011			2,878,446			2,764,870			2,700,199			2,617,397			2,487,186			2,583,463			2,556,630			2,457,158			2,348,144
Residential	$	2,158,696			1,986,546			2,179,767			2,217,959			2,253,212			2,243,116			2,265,240			2,261,904			2,234,926			2,209,575
Home equity	$	498,039			514,655			509,747			490,616			476,591			445,356			474,011			460,241			435,366			410,952
Other consumer	$	145,501			135,524			136,990			144,449			165,462			182,518			174,468			182,348			186,903			186,486
Specialized lending	$	182,691			194,919			194,143			180,100			161,104			165,935			161,105			163,961			173,566			165,175
Total loans	$	5,725,938			5,710,090			5,785,517			5,733,323			5,673,766			5,524,111			5,658,287			5,625,084			5,487,919			5,320,332
Total interest-earning assets	$	6,915,138			7,021,393			6,952,003			6,872,508			6,811,941			6,973,137			6,901,629			6,984,200			7,031,114			6,976,304
Goodwill and other intangibles	$	752,462			751,955			752,422			752,007			753,483			754,919			750,516			753,496			756,491			759,284
Total assets	$	7,997,299			8,116,588			8,044,675			7,940,621			7,884,237			8,028,761			7,963,834			8,033,309			8,082,794			8,035,848
Interest-bearing liabilities:
Savings accounts	$	889,398			813,084			881,145			921,747			943,137			1,057,992			978,337			1,039,632			1,086,454			1,129,407
Checking	$	487,173			476,721			482,838			492,312			497,094			507,215			504,779			508,079			505,968			510,083
Money market deposits	$	1,413,178			1,581,043			1,393,680			1,369,121			1,306,061			1,200,914			1,297,828			1,217,859			1,174,835			1,110,893
Certificates of deposit	$	2,263,933			2,168,218			2,286,634			2,311,348			2,290,626			2,202,282			2,255,120			2,236,959			2,207,201			2,107,851
Borrowed funds	$	853,297			986,725			889,375			764,987			769,314			980,429			823,799			928,766			1,045,184			1,127,879
Total interest-bearing liabilities	$	5,906,979			6,025,791			5,933,672			5,859,515			5,806,232			5,948,832			5,859,863			5,931,295			6,019,642			5,986,113
Noninterest-bearing deposits	$	627,259			644,680			657,366			616,537			589,517			591,306			601,994			614,880			590,754			556,840
Total deposits	$	5,680,941			5,683,746			5,701,663			5,711,065			5,626,435			5,559,709			5,638,058			5,617,409			5,565,212			5,415,074
Total liabilities	$	6,649,427			6,779,481			6,717,283			6,587,797			6,509,433			6,651,267			6,572,369			6,657,635			6,715,447			6,660,514
Net interest-earning assets	$	1,008,159			995,602			1,018,331			1,012,993			1,005,709			1,024,305			1,041,766			1,052,905			1,011,472			990,191
Stockholders' equity	$	1,347,872			1,337,107			1,327,392			1,352,824			1,374,804			1,377,494			1,391,465			1,375,674			1,367,347			1,375,334
Tangible equity (1)	$	595,410			585,152			574,970			600,817			621,321			622,575			640,949			622,178			610,856			616,050
Common shares outstanding (2):
Basic		102,838			101,274			101,472			103,373			105,294			107,068			106,661			106,599			106,985			108,042
Diluted		103,472			101,757			102,059			104,031			106,004			108,027			107,576			107,548			107,897			109,026
SELECTED AVERAGE YIELDS/RATES
(Tax equivalent basis)
Securities, at amortized cost		4.49	%		4.72	%		4.54	%		4.40	%		4.26	%		4.10	%		4.20	%		4.16	%		4.07	%		3.99	%
Loans
Commercial:
Real estate		6.80	%		6.73	%		6.80	%		6.84	%		6.85	%		6.93	%		7.04	%		6.87	%		6.89	%		6.90	%
Business		7.59	%		7.26	%		7.73	%		7.70	%		7.69	%		7.58	%		7.99	%		7.67	%		7.48	%		7.12	%
Total commercial loans		6.99	%		6.86	%		7.02	%		7.04	%		7.04	%		7.06	%		7.24	%		7.04	%		7.02	%		6.95	%
Residential		5.61	%		5.62	%		5.61	%		5.57	%		5.62	%		5.57	%		5.59	%		5.56	%		5.57	%		5.56	%
Home equity		6.95	%		6.85	%		6.96	%		7.00	%		7.00	%		6.88	%		7.01	%		6.97	%		6.84	%		6.67	%
Other consumer		7.66	%		7.81	%		7.91	%		7.55	%		7.42	%		7.50	%		7.65	%		7.58	%		7.44	%		7.33	%
Specialized lending		8.61	%		8.16	%		8.22	%		9.67	%		8.45	%		9.59	%		8.82	%		8.70	%		10.26	%		10.51	%
Total loans		6.53	%		6.49	%		6.54	%		6.57	%		6.52	%		6.53	%		6.62	%		6.50	%		6.53	%		6.47	%
Total interest-earning assets		6.20	%		6.18	%		6.22	%		6.22	%		6.16	%		6.04	%		6.21	%		6.06	%		6.00	%		5.89	%
Savings accounts		0.44	%		0.35	%		0.35	%		0.43	%		0.62	%		0.64	%		0.64	%		0.64	%		0.64	%		0.64	%
Interest-bearing checking		0.42	%		0.40	%		0.37	%		0.37	%		0.53	%		0.49	%		0.56	%		0.49	%		0.46	%		0.46	%
Money market deposits		3.70	%		3.79	%		3.76	%		3.65	%		3.56	%		3.08	%		3.42	%		3.19	%		2.97	%		2.66	%
Certificates of deposit		4.47	%		4.39	%		4.51	%		4.53	%		4.44	%		3.90	%		4.29	%		4.06	%		3.78	%		3.43	%
Borrowed funds		4.58	%		4.65	%		4.78	%		4.44	%		4.38	%		3.76	%		4.21	%		3.99	%		3.18	%		3.79	%
Total interest-bearing liabilities		3.36	%		3.41	%		3.42	%		3.32	%		3.28	%		2.84	%		3.16	%		2.97	%		2.67	%		2.58	%
Tax equivalent net interest rate spread		2.84	%		2.77	%		2.80	%		2.90	%		2.88	%		3.20	%		3.05	%		3.09	%		3.33	%		3.31	%
Tax equivalent net interest rate margin		3.33	%		3.25	%		3.30	%		3.40	%		3.37	%		3.61	%		3.52	%		3.54	%		3.71	%		3.68	%

(1) Excludes goodwill and other intangible assets.

(2) Excludes unallocated ESOP shares and unvested restricted stock shares.

(3) Includes operating results for the banking activities segment as defined in the Company's quarterly and annual reports.

(4) Includes nonaccrual loans.