EXHIBIT 99.1
First Niagara Reports First Quarter 2012 Operating Net Income per Share of $0.19
First Quarter Highlights:
- 9th Consecutive Quarter of Double-Digit Commercial Loan Growth
- Checking Account Customer Acquisition up 11% over Linked Quarter
- Strong Capital Markets Activity Leads Noninterest Income Increase
- HSBC Branch Acquisition Integration Well Advanced
- GAAP EPS of $0.16 Including Merger-Related and Restructuring Charges
BUFFALO, N.Y., April 19, 2012 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (Nasdaq:FNFG) today announced first quarter 2012 results reflecting continuing and profitable organic growth driven by strong core customer fundamentals. Net income and earnings per share were muted by the carrying cost of the financing required to complete the company's pending acquisition of the HSBC branches, which is on-track for a successful completion and conversion the weekend of May 18th.
"Our results again reflect the benefits of our continuing focus on deepening and expanding customer relationships across the footprint," said John R. Koelmel, First Niagara President and Chief Executive Officer. "Our relationship-based banking model again enabled us to increase both our share of market and wallet and further strengthen valuable customer relationships everywhere we do business. The outcomes are all the more notable as our team also prepares to put First Niagara's successful model to work on an even greater scale when we complete and convert the HSBC branch transaction in less than 30 days."
First Quarter Results
In the first quarter of 2012, First Niagara posted non-GAAP operating net income available to common shareholders of $64.9 million, or $0.19 per diluted share, compared to $0.24 per share in the fourth quarter of 2011. Excluding the impact of the carrying cost of the funding needed to complete the company's pending acquisition of HSBC branches, the results were comparable to $0.24 per share reported in the fourth quarter of 2011.
Total revenues of $312.3 million increased 2% over the fourth quarter of 2011, driven by a 10% increase in noninterest income. Net interest income was essentially flat to the linked quarter, as continuing balance sheet growth mitigated the impact of further net interest margin compression. Average commercial loans increased $353 million for the quarter, up 14% annualized over the prior quarter, and the pace of checking account openings increased 11% over the fourth quarter of last year. Continued improvement in noninterest income was again driven by strong capital markets and mortgage banking results.
Net interest margin was 3.34%, a 14 basis point decline from the prior quarter. Margin compression continues to be driven by the downward re-pricing of assets as well as accelerated prepayments and premium amortization on mortgage-backed securities. Those impacts were partially mitigated by the benefit of a 14 basis point decline in the cost of interest-bearing deposits.
The provision for credit losses was $20.0 million for the quarter. Net charge-offs equaled 34 basis points of average originated loans, consistent with the 32 basis points recorded in 2011.The increase of $6.6 million from the linked fourth quarter includes $4.4 million attributable to the Harleysville National portfolio acquired in 2010.
On a reported GAAP basis, first quarter 2012 net income available to common shareholders was $54.8 million, or $0.16 per diluted share, compared to $58.5 million, or $0.19 per diluted share, in the fourth quarter of 2011. Reported GAAP net income and EPS during the first quarter this year and the prior quarter reflect merger integration expenses and restructuring costs.
| Operating Results (Non-GAAP) | Q1 2012 | Q4 2011 | Q1 2011 |
| Net interest income | $ 242.4 | $ 242.5 | $ 172.9 |
| Provision for credit losses | 20.0 | 13.4 | 12.9 |
| Noninterest income | 69.9 | 63.7 | 52.1 |
| Noninterest expense | 184.5 | 182.5 | 137.9 |
| Operating net income before non-operating items | 70.1 | 72.1 | 49.8 |
| Preferred stock dividend | 5.1 | -- | -- |
| Operating net income available to common shareholders | 64.9 | 72.1 | 49.8 |
| Weighted average diluted shares outstanding | 349.1 | 304.3 | 206.6 |
| Operating earnings per diluted share | $ 0.19 | $ 0.24 | $ 0.24 |
| | | | |
Reported Results (GAAP) | | | |
| Operating net income before non-operating items | $ 70.1 | $ 72.1 | $ 49.8 |
| Non-operating items(a) | 10.2 | 13.6 | 4.9 |
| Net income | 59.9 | 58.5 | 44.9 |
| Preferred stock dividend | 5.1 | -- | -- |
| Net income available to common shareholders | 54.8 | 58.5 | 44.9 |
| Weighted average diluted shares outstanding | 349.1 | 304.3 | 206.6 |
| Earnings per diluted share | $ 0.16 | $ 0.19 | $ 0.22 |
| |
| All amounts in millions except earnings per diluted share. The Non-GAAP/Operating Results table above summarizes the company's operating results excluding certain non-operating items. For a detailed reconciliation of non-GAAP measures, refer to the attached tables. |
| |
| (a) Amounts are shown net of tax and represent expenses related to acquisition, integration and restructuring. |
"We continue to win in the markets we serve as evidenced by our ninth consecutive quarter of double-digit commercial loan growth and strong checking account acquisition. However, we are not immune to the effects of the historically low and volatile interest rate environment, which creates challenges for all banks," said Gregory W. Norwood, Chief Financial Officer. "We will continue to run the business for long-term value creation, but are looking every day at ways to better serve our customers by enriching our value proposition to them while managing expenses."
Strong Commercial Loan Growth Continues
Commercial loans averaged $10.2 billion in the first quarter of 2012, an increase of $353 million, or 14% annualized over the prior quarter. Commercial and industrial (C&I) loans averaged $3.9 billion in the first quarter of 2012, increasing by $252 million, or 28% annualized over the prior quarter. Even as demand for credit remained soft nationally and competitive pressures intensified, First Niagara continues to drive commercial loan growth with its customer-relationship value proposition, seasoned commercial lending team and enhanced products.
Total loans and leases averaged $16.6 billion in the first quarter of 2012, increasing by $203 million, or 5% annualized over the prior quarter. Continued strength in C&I loans was partially offset by declines in residential real estate loans driven by elevated prepayments and the company's asset-liability management strategy. Average residential mortgage balances in the first quarter were $3.9 billion, a decline of $140 million, or 14% annualized, from the fourth quarter. Average home equity loans in the first quarter were $2.2 billion, or a 2% annualized decrease from the prior quarter.
Credit Quality
On a consolidated basis, provision for credit losses was $20.0 million for the first quarter compared to $13.4 million in the fourth quarter of 2011. At March 31, 2012, the allowance for loan losses was $126.7 million, an increase from $120.1 million at December 31, 2011. The accompanying table provides the split between the company's originated and loan portfolios acquired since 2009.
| | |
| | Q1 2012 | Q4 2011 |
| $ in millions | Originated | Acquired | FNFG | Originated | Acquired | FNFG |
| Provision for loan losses | $15.5 | $4.4 | $19.9 | $10.8 | $2.3 | $13.2 |
| Net charge-offs | 8.6 | 4.7 | 13.3 | 5.4 | 0.4 | 5.8 |
| NCOs/ Avg Loans | 0.34% | 0.29% | 0.32% | 0.22% | 0.03% | 0.14% |
| Total loans* | $10,517 | $6,460 | $16,977 | $9,876 | $6,802 | $16,678 |
| |
| (*) Acquired loans before associated credit discount; see accompanying tables for further information |
Credit metrics on originated loans continue to outperform peer averages
The provision for credit losses on originated loans totaled $15.5 million, up from $10.8 million in the prior quarter. As in recent quarters, the loan loss provision exceeded net charge-offs as the company continues to increase its allowance for loan losses consistent with the growth and changing mix of its loan portfolio. Net charge-offs increased to $8.6 million or 34 basis points of average originated loans, compared to 32 basis points in 2011.
At March 31, 2012, the allowance for loan losses on originated loans totaled $125.1 million or 1.19% of such loans, compared to $118.2 million or 1.20% of loans at December 31, 2011.
At the end of the first quarter, nonperforming assets equaled 0.34% of total assets, an increase of five basis points from the fourth quarter of 2011. Nonperforming loans were $114.2 million, representing 1.09% of originated loans at March 31, 2012, and continue to compare favorably to First Niagara's peer group. At December 31, 2011, nonperforming loans equaled 0.91% of originated loans. The sequential increase in nonperforming loans was principally driven by three commercial credits with a net carrying value of $20 million. Excluding these three credits, new nonperforming loan inflows remained consistent with recent quarters.
Acquired loans
The provision for losses on acquired loans totaled $4.4 million, up from $2.3 million in the prior quarter. Net charge-offs on those portfolios totaled $4.7 million and primarily relate to two loans acquired in the Harleysville National transaction.
Strong Checking Account Growth
New checking account openings increased 11% over the prior quarter and 36% over the prior year. Personal checking account balances increased 15% annualized over the prior quarter driven by continued new customer acquisition and balance growth on existing customers.
Average noninterest-bearing deposits decreased $24 million, or 3% annualized, over the prior quarter as the aforementioned growth in personal balances was offset by seasonal decline in small business balances.
Core deposits, excluding money market deposits, increased 2% annualized over the prior quarter. Money market and time deposit balances declined 13% and 32% annualized from the prior quarter, respectively, and were driven by the company's current interest rate and treasury management strategies.
Net Interest Income Remains Flat
Average earning assets increased 21% annualized compared to the prior quarter, reflecting the effects of continued strength in commercial loan growth and investment security purchases in anticipation of proceeds expected from the HSBC branch transaction. Net interest income of $242.4 million was essentially flat to the prior quarter.
Tax equivalent net interest margin in the first quarter of 2012 was 3.34%, or 14 basis points below the prior quarter. That decline was driven by the effects of accelerated prepayments and the refinancing of higher-yielding earning assets given the ongoing low interest rate environment. Those impacts were partially offset by a significant decrease in the cost of interest-bearing deposits, which declined 14 basis points from the prior quarter, to 38 basis points.
Active Customer Engagement Drives 10% Noninterest Income Growth
First quarter 2012 noninterest income of $69.9 million increased $6.2 million, or 10% compared to the prior quarter. The increase from the prior quarter was driven by sustained strength in capital markets, mortgage banking income, wealth management services, and seasonal increase in insurance commissions.
Capital markets income was up 138% from the prior quarter, driven largely by an increased volume of derivative sales transactions and higher syndication fees earned during the quarter. Wealth management services increased 11% from the prior quarter driven by greater activity related to strength in equity markets during the quarter. Mortgage banking income increased to $5.6 million, a 7% increase from the prior quarter driven by strength in gain-on-sale margins.
Noninterest income comprised 22% of first quarter revenues, compared to 21% in the prior quarter, reflecting the benefit of on-going initiatives in First Niagara's commercial and retail banking operations.
Noninterest Expense
First quarter non-GAAP operating noninterest expense was $184.5 million, up $2.0 million from the fourth quarter of 2011. The increase in operating expenses reflects normal first-quarter seasonality in payroll taxes included in salary and benefit expense. This was partially offset by declines in professional services expense from the prior quarter. The non-GAAP operating efficiency ratio was essentially flat at 59.1% in the first quarter of 2012.
On a GAAP basis, noninterest expense for the first quarter was $200.2 million and included $15.7 million in merger and acquisition-related as well as restructuring expenses.
Capital
At March 31, 2012, the company's estimated consolidated Total Risk Based capital and Tier 1 Common Risk Based capital ratios were 16.8% and 12.5%, respectively. First Niagara remains well above current regulatory guidelines for well-capitalized institutions.
About First Niagara
First Niagara, through its wholly owned subsidiary, First Niagara Bank, N.A., is a multi-state community-oriented bank that currently has approximately $36 billion in assets, $19 billion in deposits, more than 330 branches and approximately 5,000 employees providing financial services to individuals, families and businesses across Upstate New York, Pennsylvania, Connecticut and Massachusetts. For more information, visit www.firstniagara.com.
When First Niagara completes its acquisition of the HSBC branches, expected to occur on May 18, 2012, the regional bank will have an enhanced leadership position in the Northeast, with nearly 430 locations, $30 billion in total deposits, $38 billion in assets and more than 6,000 employees serving consumers, businesses and communities across New York, Pennsylvania, Connecticut and Massachusetts. The transaction will also provide First Niagara with number-one retail market share across Upstate New York, virtually doubling its number of branches in New York State to more than 200, stretching from Buffalo to Albany and down through the Hudson Valley.
Investor Call
A conference call will be held at 10 a.m. Eastern Time on Thursday, April 19, 2012 to discuss the company's financial results. Those wishing to participate in the call may dial toll-free 1-888-603-9606 with the passcode: 7271492. Presentation slides will be used during the earnings conference call and are available under the investor relations tab of our website at www.firstniagara.com. A replay of the call will be available until May 10, 2012 by dialing 1-800-430-5973, passcode: 4956.
Non-GAAP Measures - This news release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). 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 non-operating 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. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP disclosures are used in this news release, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document.
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.
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| First Niagara Financial Group, Inc. |
| Income Statement Highlights -- Reported Basis |
| (in thousands, except per share amounts) |
| | | | | | | |
| | 2012 | 2011 | 2010 |
| | First | Fourth | Third | Second | First | Fourth |
| | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter |
| | | | | | | |
| Interest income: | | | | | | |
| Loans and leases | $ 189,385 | $ 195,434 | $ 192,772 | $ 184,341 | $ 132,117 | $ 133,983 |
| Investment securities and other | 101,395 | 96,472 | 94,375 | 93,029 | 76,767 | 71,337 |
| Total interest income | 290,780 | 291,906 | 287,147 | 277,370 | 208,884 | 205,320 |
| | | | | | | |
| Interest expense: | | | | | | |
| Deposits | 14,998 | 21,521 | 24,771 | 21,324 | 15,621 | 16,825 |
| Borrowings | 33,411 | 27,872 | 26,947 | 25,609 | 20,395 | 20,947 |
| Total interest expense | 48,409 | 49,393 | 51,718 | 46,933 | 36,016 | 37,772 |
| | | | | | | |
| Net interest income | 242,371 | 242,513 | 235,429 | 230,437 | 172,868 | 167,548 |
| Provision for credit losses | 20,000 | 13,400 | 14,500 | 17,307 | 12,900 | 13,500 |
| Net interest income after provision | 222,371 | 229,113 | 220,929 | 213,130 | 159,968 | 154,048 |
| | | | | | | |
| Noninterest income: | | | | | | |
| Banking services | 21,593 | 22,079 | 26,384 | 24,613 | 19,006 | 22,230 |
| Insurance commissions | 16,833 | 15,440 | 16,886 | 17,044 | 15,755 | 13,130 |
| Wealth management services | 9,039 | 8,179 | 7,933 | 7,883 | 6,734 | 4,940 |
| Mortgage banking | 5,649 | 5,279 | 5,254 | 3,386 | 1,263 | 6,052 |
| Lending and leasing | 3,123 | 3,103 | 3,399 | 2,811 | 2,112 | 1,921 |
| Bank owned life insurance | 3,387 | 3,302 | 2,742 | 3,055 | 2,030 | 1,994 |
| Capital markets income | 6,539 | 2,746 | 2,687 | 655 | 2,261 | 2,814 |
| Other income | 3,745 | 3,557 | 3,370 | 1,448 | 2,913 | 1,031 |
| Total noninterest income | 69,908 | 63,685 | 68,655 | 60,895 | 52,074 | 54,112 |
| | | | | | | |
| Noninterest expense: | | | | | | |
| Salaries and benefits | 96,477 | 88,796 | 89,131 | 90,192 | 73,776 | 65,698 |
| Occupancy and equipment | 22,017 | 22,580 | 20,434 | 18,952 | 16,197 | 16,053 |
| Technology and communications | 19,713 | 18,942 | 16,634 | 13,929 | 12,871 | 12,877 |
| Marketing and advertising | 6,763 | 7,724 | 7,554 | 3,880 | 2,692 | 3,383 |
| Professional services | 8,895 | 11,669 | 9,171 | 9,138 | 6,039 | 7,538 |
| Amortization of intangibles | 6,466 | 6,586 | 6,896 | 6,573 | 5,489 | 5,447 |
| FDIC premiums | 6,133 | 6,097 | 10,301 | 6,267 | 6,195 | 5,871 |
| Merger and acquisition integration expenses | 12,970 | 6,149 | 9,008 | 76,828 | 6,176 | 5,905 |
| Restructuring charges | 2,703 | 13,496 | 16,326 | 11,656 | 1,056 | -- |
| Other expense | 18,041 | 20,132 | 18,416 | 17,726 | 14,659 | 16,562 |
| Total noninterest expense | 200,178 | 202,171 | 203,871 | 255,141 | 145,150 | 139,334 |
| | | | | | | |
| Income before income taxes | 92,101 | 90,627 | 85,713 | 18,884 | 66,892 | 68,826 |
| Income taxes | 32,236 | 32,166 | 28,732 | 5,334 | 21,974 | 22,971 |
| Net income | 59,865 | 58,461 | 56,981 | 13,550 | 44,918 | 45,855 |
| Preferred stock dividend | 5,115 | -- | -- | -- | -- | -- |
| | | | | | | |
| Net income available to common stockholders | $ 54,750 | $ 58,461 | $ 56,981 | $ 13,550 | $ 44,918 | $ 45,855 |
| | | | | | | |
| Financial Ratios: | | | | | | |
| Earnings per basic share | $ 0.16 | $ 0.19 | $ 0.19 | $ 0.05 | $ 0.22 | $ 0.22 |
| Earnings per diluted share | 0.16 | 0.19 | 0.19 | 0.05 | 0.22 | 0.22 |
| Weighted average shares outstanding - basic(1) | 348,823 | 304,065 | 292,211 | 281,496 | 206,124 | 205,901 |
| Weighted average shares outstanding - diluted(1) | 349,069 | 304,341 | 292,503 | 282,420 | 206,644 | 206,229 |
| Net revenue(2) | $ 312,279 | $ 306,198 | $ 304,084 | $ 291,332 | $ 224,942 | $ 221,660 |
| Noninterest income as a percentage of net revenue(2) | 22.39% | 20.80% | 22.58% | 20.90% | 23.15% | 24.40% |
| Pre-tax, pre-provision income(3) | 112,101 | 104,027 | 100,213 | 36,191 | 79,792 | 82,326 |
| Pre-tax, pre-provision income per diluted share(3) | 0.32 | 0.34 | 0.34 | 0.13 | 0.39 | 0.40 |
| Pre-tax, pre-provision return on average assets(3) | 1.36% | 1.30% | 1.28% | 0.50% | 1.53% | 1.55% |
| Net interest margin(4) | 3.34% | 3.48% | 3.48% | 3.65% | 3.80% | 3.65% |
| Interest yield on average loans(4) | 4.62% | 4.76% | 4.73% | 4.93% | 5.12% | 5.24% |
| Rate paid on interest-bearing liabilities(4) | 0.79% | 0.82% | 0.87% | 0.84% | 0.90% | 0.93% |
| Efficiency ratio | 64.10% | 66.03% | 67.04% | 87.58% | 64.53% | 62.90% |
| Effective tax rate | 35.0% | 35.5% | 33.5% | 28.2% | 32.8% | 33.4% |
| Return on average assets(5) | 0.73% | 0.73% | 0.73% | 0.19% | 0.86% | 0.87% |
| Return on average equity(5) | 4.96% | 5.54% | 5.61% | 1.42% | 6.56% | 6.46% |
| Return on average tangible equity(3)(5) | 7.90% | 9.75% | 10.28% | 2.59% | 10.94% | 10.64% |
| Return on average common equity | 4.88% | 5.63% | 5.61% | 1.42% | 6.56% | 6.46% |
| Return on average tangible common equity(3) | 8.12% | 10.03% | 10.28% | 2.59% | 10.94% | 10.64% |
| | | | | | | |
| (1) Share count excludes unallocated ESOP shares and unvested restricted stock shares. (2) Net revenue is comprised of net interest income and noninterest income. |
| (3) The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail. |
| (4) Yields and rates calculated on a tax equivalent basis. |
| (5) Return used to calculate ratio excludes preferred stock dividend. |
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| First Niagara Financial Group, Inc. |
| Period End Balance Sheet |
| (in thousands) |
| | | | | | | |
| | 2012 | 2011 | 2010 |
| | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, |
| | | | | | | |
| Cash and cash equivalents | $ 370,380 | $ 836,555 | $ 332,437 | $ 318,820 | $ 220,997 | $ 213,820 |
| Investment securities: | | | | | | |
| Available for sale | 12,248,058 | 9,348,296 | 8,349,237 | 8,219,695 | 5,424,731 | 7,289,455 |
| Held to maturity | 2,503,156 | 2,669,630 | 2,830,744 | 2,939,933 | 3,030,320 | 1,025,724 |
| FHLB and FRB common stock | 499,328 | 358,159 | 331,747 | 305,241 | 166,357 | 183,800 |
| Loans held for sale | 102,513 | 94,484 | 79,820 | 51,141 | 26,955 | 37,977 |
| Loans and leases: | | | | | | |
| Commercial: | | | | | | |
| Real estate | 6,369,098 | 6,244,381 | 6,148,988 | 6,130,301 | 4,541,739 | 4,370,857 |
| Business | 4,108,363 | 3,771,649 | 3,588,733 | 3,335,330 | 2,697,274 | 2,623,079 |
| Total commercial loans | 10,477,461 | 10,016,030 | 9,737,721 | 9,465,631 | 7,239,013 | 6,993,936 |
| Residential real estate | 3,881,003 | 4,012,267 | 4,171,374 | 4,270,811 | 1,701,544 | 1,692,198 |
| Home equity | 2,149,135 | 2,165,988 | 2,177,772 | 2,160,665 | 1,507,292 | 1,524,570 |
| Other consumer | 283,320 | 278,298 | 278,499 | 272,118 | 263,394 | 272,710 |
| Total loans and leases | 16,790,919 | 16,472,583 | 16,365,366 | 16,169,225 | 10,711,243 | 10,483,414 |
| Allowance for loan losses | 126,746 | 120,100 | 112,749 | 107,028 | 100,126 | 95,354 |
| Loans and leases, net | 16,664,173 | 16,352,483 | 16,252,617 | 16,062,197 | 10,611,117 | 10,388,060 |
| Bank owned life insurance | 395,944 | 392,468 | 416,449 | 378,241 | 232,748 | 230,718 |
| Premises and equipment | 330,590 | 318,101 | 303,634 | 292,778 | 227,136 | 217,555 |
| Goodwill and other intangibles | 1,796,394 | 1,803,240 | 1,812,628 | 1,829,712 | 1,108,811 | 1,114,144 |
| Other assets | 607,269 | 637,199 | 500,194 | 491,888 | 390,673 | 382,600 |
| Total assets | $ 35,517,805 | $ 32,810,615 | $ 31,209,507 | $ 30,889,646 | $ 21,439,845 | $ 21,083,853 |
| | | | | | | |
| Deposits: | | | | | | |
| Savings accounts | $ 2,554,720 | $ 2,621,016 | $ 2,641,723 | $ 2,767,951 | $ 1,271,494 | $ 1,235,004 |
| Interest-bearing checking | 2,431,672 | 2,259,576 | 2,028,052 | 2,028,645 | 1,726,379 | 1,705,537 |
| Money market deposits | 7,100,646 | 7,220,902 | 7,507,189 | 6,878,214 | 5,177,242 | 4,919,014 |
| Noninterest-bearing deposits | 3,200,824 | 3,335,356 | 3,095,283 | 2,738,917 | 2,050,034 | 1,989,505 |
| Certificates of deposit | 3,741,525 | 3,968,265 | 4,351,930 | 4,486,768 | 3,230,674 | 3,299,784 |
| Total deposits | 19,029,387 | 19,405,115 | 19,624,177 | 18,900,495 | 13,455,823 | 13,148,844 |
| | | | | | | |
| Short-term borrowings | 6,353,189 | 2,208,845 | 1,156,711 | 1,466,745 | 970,262 | 1,788,566 |
| Long-term borrowings | 4,688,251 | 5,918,276 | 5,928,632 | 6,134,181 | 3,933,791 | 3,104,908 |
| Other liabilities | 571,532 | 480,201 | 499,312 | 395,390 | 304,937 | 276,465 |
| Total liabilities | 30,642,359 | 28,012,437 | 27,208,832 | 26,896,811 | 18,664,813 | 18,318,783 |
| Preferred stockholders' equity | 338,002 | 338,002 | -- | -- | -- | -- |
| Common stockholders' equity | 4,537,444 | 4,460,176 | 4,000,675 | 3,992,835 | 2,775,032 | 2,765,070 |
| Total stockholders' equity | 4,875,446 | 4,798,178 | 4,000,675 | 3,992,835 | 2,775,032 | 2,765,070 |
| Total liabilities and stockholders' equity | $ 35,517,805 | $ 32,810,615 | $ 31,209,507 | $ 30,889,646 | $ 21,439,845 | $ 21,083,853 |
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| | | | | | | |
| Selected balance sheet information: | | | | | | |
| Total interest-earning assets(1) | $ 31,959,556 | $ 29,284,139 | $ 27,805,974 | $ 27,560,036 | $ 19,278,620 | $ 18,922,199 |
| Total interest-bearing liabilities | 26,870,002 | 24,196,880 | 23,614,238 | 23,762,504 | 16,309,842 | 16,052,813 |
| Net interest-earning assets | $ 5,089,554 | $ 5,087,259 | $ 4,191,736 | $ 3,797,532 | $ 2,968,778 | $ 2,869,386 |
| | | | | | | |
| Tangible equity(2) | $ 3,079,052 | $ 2,994,938 | $ 2,188,047 | $ 2,163,123 | $ 1,666,221 | $ 1,650,926 |
| Tangible common equity(2) | 2,741,050 | 2,656,936 | 2,188,047 | 2,163,123 | 1,666,221 | 1,650,926 |
| Unrealized gain on securities, net of tax | 152,408 | 105,276 | 116,666 | 102,754 | 63,893 | 70,690 |
| Total mortgage loans serviced for others | 2,241,708 | 2,071,445 | 1,922,592 | 1,834,004 | 1,572,925 | 1,554,083 |
| | | | | | | |
| Total core deposits | $ 15,287,862 | $ 15,436,850 | $ 15,272,247 | $ 14,413,727 | $ 10,225,149 | $ 9,849,060 |
| | | | | | | |
| Originated loans(3) | $ 10,517,021 | $ 9,876,005 | $ 9,425,194 | $ 8,859,695 | $ 8,210,106 | $ 7,833,695 |
| Acquired loans(4) | 6,459,798 | 6,801,689 | 7,195,250 | 7,576,334 | 2,616,387 | 2,772,158 |
| Credit related discount on acquired loans(5) | (185,900) | (205,111) | (255,078) | (266,804) | (115,250) | (122,439) |
| Total Loans | $ 16,790,919 | $ 16,472,583 | $ 16,365,366 | $ 16,169,225 | $ 10,711,243 | $ 10,483,414 |
| | | | | | | |
| (1) Includes interest bearing cash and cash equivalents, investment securities at amortized cost, loans held for sale, and total loans and leases. |
| (2) The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail. |
| (3)Originated loans represent total loans excluding acquired loans. |
| (4) Represents the carrying value of acquired loans plus the principal not expected to be collected. |
| (5) Represent principal on acquired loans not expected to be collected. |
| |
| |
| First Niagara Financial Group, Inc. |
| Average Balance Sheet and Related Tax Equivalent Yields & Rates |
| (in millions) |
| |
| | For the three months ended |
| | March 31, 2012 | December 31, 2011 | March 31, 2011 | December 31, 2010 |
| | Average | Interest(1) | Yields | Average | Interest(1) | Yields | Average | Interest(1) | Yields | Average | Interest(1) | Yields |
| | Balances | | and | Balances | | and | Balances | | and | Balances | | and |
| |
| | Rates(1) |
| | Rates(1) |
| | Rates(1) |
| | Rates(1) |
| | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | |
| Loans and leases(2) | | | | | | | | | | | | |
| Commercial: | | | | | | | | | | | | |
| Real estate | $ 6,300 | $ 79 | 4.98% | $ 6,199 | $ 82 | 5.19% | $ 4,430 | $ 62 | 5.56% | $ 4,301 | $ 61 | 5.69% |
| Business | 3,915 | 41 | 4.08 | 3,663 | 40 | 4.24 | 2,616 | 29 | 4.43 | 2,448 | 30 | 4.86 |
| Total commercial loans | 10,215 | 120 | 4.63 | 9,862 | 122 | 4.84 | 7,046 | 91 | 5.14 | 6,749 | 91 | 5.39 |
| Residential real estate | 3,945 | 42 | 4.28 | 4,085 | 45 | 4.41 | 1,739 | 21 | 4.96 | 1,762 | 23 | 4.93 |
| Home equity | 2,157 | 24 | 4.40 | 2,166 | 24 | 4.48 | 1,508 | 17 | 4.52 | 1,503 | 17 | 4.56 |
| Other consumer | 278 | 5 | 7.34 | 279 | 5 | 7.12 | 273 | 4 | 6.59 | 269 | 5 | 7.27 |
| Total loans and leases | 16,595 | 191 | 4.62 | 16,392 | 196 | 4.76 | 10,566 | 133 | 5.12 | 10,283 | 136 | 5.24 |
| Mortgage-backed securities | 10,254 | 82 | 3.19 | 9,691 | 81 | 3.34 | 7,155 | 68 | 3.81 | 7,307 | 63 | 3.39 |
| Other investment securities | 2,278 | 20 | 3.48 | 1,574 | 16 | 4.17 | 949 | 10 | 3.95 | 907 | 8 | 3.91 |
| Total securities, at cost | 12,532 | 102 | 3.24 | 11,265 | 97 | 3.45 | 8,104 | 78 | 3.83 | 8,214 | 71 | 3.45 |
| Money market and other investments | 673 | 3 | 2.28 | 651 | 4 | 2.27 | 194 | 2 | 4.15 | 204 | 2 | 4.73 |
| Total interest-earning assets | 29,800 | $ 296 | 3.99% | 28,308 | $ 297 | 4.17% | 18,864 | $ 213 | 4.58% | 18,701 | $ 209 | 4.45% |
| Goodwill and other intangibles | 1,801 | | | 1,810 | | | 1,112 | | | 1,108 | | |
| Other noninterest-earning assets | 1,523 | | | 1,578 | | | 1,144 | | | 1,200 | | |
| Total assets | $ 33,124 | | | $ 31,696 | | | $ 21,120 | | | $ 21,009 | | |
| | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | |
| Savings accounts | $ 2,566 | $ -- | 0.03% | $ 2,622 | $ 1 | 0.12% | $ 1,244 | $ -- | 0.10% | $ 1,233 | $ 1 | 0.11% |
| Interest-bearing checking | 2,224 | 1 | 0.10 | 2,101 | 1 | 0.12 | 1,732 | 1 | 0.11 | 1,711 | 1 | 0.16 |
| Money market deposits | 7,167 | 5 | 0.28 | 7,414 | 10 | 0.52 | 5,013 | 6 | 0.48 | 4,994 | 6 | 0.48 |
| Certificates of deposit | 3,827 | 9 | 0.98 | 4,162 | 10 | 0.99 | 3,254 | 9 | 1.11 | 3,442 | 9 | 1.12 |
| Total interest bearing deposits | 15,784 | 15 | 0.38% | 16,299 | 22 | 0.52% | 11,243 | 16 | 0.56% | 11,380 | 17 | 0.59% |
| Borrowings | | | | | | | | | | | | |
| Short-term borrowings | 3,632 | 6 | 0.65% | 1,899 | 2 | 0.49% | 1,899 | 1 | 0.25% | 1,726 | 10 | 2.25% |
| Long-term borrowings | 5,334 | 27 | 2.07 | 5,797 | 26 | 1.75 | 3,064 | 19 | 2.54 | 2,905 | 11 | 1.53 |
| Total borrowings | 8,966 | 33 | 1.50 | 7,696 | 28 | 1.44 | 4,963 | 20 | 1.67 | 4,631 | 21 | 1.78 |
| Total interest-bearing liabilities | 24,750 | $ 48 | 0.79% | 23,995 | $ 49 | 0.82% | 16,206 | $ 36 | 0.90% | 16,011 | $ 38 | 0.93% |
| Noninterest-bearing deposits | 3,053 | | | 3,077 | | | 1,837 | | | 1,874 | | |
| Other noninterest-bearing liabilities | 471 | | | 435 | | | 300 | | | 306 | | |
| Total liabilities | 28,274 | | | 27,507 | | | 18,343 | | | 18,191 | | |
| Total stockholders' equity | 4,850 | | | 4,189 | | | 2,777 | | | 2,818 | | |
| Total liabilities and stockholders' equity | $ 33,124 | | | $ 31,696 | | | $ 21,120 | | | $ 21,009 | | |
| | | | | | | | | | | | | |
| Net interest income (FTE) | | $ 248 | | | $ 248 | | | $ 177 | | | $ 171 | |
| Taxable Equivalent Adjustment(1) | | 6 | | | 5 | | | 4 | | | 3 | |
| | | | | | | | | | | | | |
| Total core deposits | $ 15,010 | $ 6 | 0.15% | $ 15,214 | $ 12 | 0.29% | $ 9,826 | $ 7 | 0.28% | $ 9,812 | $ 8 | 0.29% |
| Total deposits | 18,837 | 15 | 0.32% | 19,376 | 22 | 0.44% | 13,080 | 15 | 0.48% | 13,254 | 17 | 0.50% |
| | | | | | | | | | | | | |
| Tax equivalent net interest rate spread | | | 3.20% | | | 3.35% | | | 3.68% | | | 3.52% |
| Tax equivalent net interest rate margin | | | 3.34% | | | 3.48% | | | 3.80% | | | 3.65% |
| | | | | | | | | | | | | |
| (1) Tax equivalent interest income is calculated based upon a 35% effective tax rate. |
| (2) Includes nonaccrual loans. |
| |
| |
| First Niagara Financial Group, Inc. |
| Allowance for Loans and Lease Losses & Asset Quality |
| (in thousands) |
| | 2012 | 2011 | 2010 |
| | First | Fourth | Third | Second | First | Fourth |
| | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter |
| | | | | | | |
| Beginning balance | $ 120,100 | $ 112,749 | $ 107,028 | $ 100,126 | $ 95,354 | $ 94,532 |
| Net loan (charge-offs) recoveries: | | | | | | |
| Commercial real estate | $ (5,994) | $ 212 | $ (5,580) | $ (2,787) | $ (2,006) | $ (4,765) |
| Commercial business | (4,143) | (4,665) | (2,123) | (3,439) | (4,391) | (6,082) |
| Residential real estate | (1,120) | (318) | 171 | (177) | (662) | (389) |
| Home equity | (1,161) | (268) | (223) | (829) | (781) | (809) |
| Other consumer | (836) | (796) | (370) | (305) | (288) | (634) |
| Total net loan charge-offs | $ (13,254) | $ (5,835) | $ (8,125) | $ (7,537) | $ (8,128) | $ (12,679) |
| Provision for loan losses | 19,900 | 13,186 | 13,846 | 14,439 | 12,900 | 13,500 |
| Ending balance | $ 126,746 | $ 120,100 | $ 112,749 | $ 107,028 | $ 100,126 | $ 95,354 |
| | | | | | | |
| Supplemental information | | | | | | |
| Allowance to loans | 0.75% | 0.73% | 0.69% | 0.66% | 0.93% | 0.91% |
| Allowance for originated loans to originated loans(1) | 1.19 | 1.20 | 1.20 | 1.21 | 1.22 | 1.22 |
| Provision to average loans (annualized) | 0.48 | 0.32 | 0.34 | 0.38 | 0.49 | 0.53 |
| Provision for originated loans to average originated loans(1) (annualized) | 0.61 | 0.45 | 0.60 | 0.64 | 0.65 | 0.71 |
| | | | | | | |
| Net charge-offs to average loans (annualized) | | | | | | |
| Commercial real estate | 0.38% | -0.01% | 0.36% | 0.19% | 0.18% | 0.44% |
| Commercial business | 0.42% | 0.51% | 0.25% | 0.44% | 0.67% | 0.99% |
| Total commercial loans | 0.40% | 0.18% | 0.32% | 0.28% | 0.36% | 0.64% |
| Residential real estate | 0.11% | 0.03% | -0.02% | 0.02% | 0.15% | 0.09% |
| Home equity | 0.22% | 0.05% | 0.04% | 0.16% | 0.21% | 0.22% |
| Other consumer | 1.20% | 1.14% | 0.53% | 0.45% | 0.42% | 0.94% |
| Total consumer loans | 0.20% | 0.08% | 0.03% | 0.09% | 0.20% | 0.21% |
| Total loans | 0.32% | 0.14% | 0.20% | 0.20% | 0.31% | 0.49% |
| | | | | | | |
| Net charge-offs of originated loans to average originated loans (annualized)(1) | | | | | | |
| Commercial real estate | 0.16% | -0.05% | 0.59% | 0.26% | 0.23% | 0.60% |
| Commercial business | 0.54% | 0.67% | 0.34% | 0.54% | 0.84% | 1.31% |
| Total commercial loans | 0.32% | 0.25% | 0.49% | 0.37% | 0.46% | 0.86% |
| Residential real estate | 0.27% | 0.08% | -0.04% | 0.05% | 0.18% | 0.10% |
| Home equity | 0.40% | 0.10% | 0.08% | 0.34% | 0.33% | 0.37% |
| Other consumer | 1.25% | 1.51% | 0.93% | 0.82% | 0.76% | 1.78% |
| Total consumer loans | 0.38% | 0.17% | 0.06% | 0.20% | 0.27% | 0.29% |
| Total loans | 0.34% | 0.22% | 0.35% | 0.32% | 0.40% | 0.67% |
| | | | | | | |
| Nonperforming loans: | | | | | | |
| Commercial real estate | $ 44,749 | $ 43,119 | $ 41,295 | 42,881 | 37,346 | 44,065 |
| Commercial business | 39,682 | 20,173 | 18,839 | 20,021 | 24,823 | 25,819 |
| Residential real estate | 22,021 | 18,668 | 15,555 | 14,484 | 13,433 | 14,461 |
| Home equity | 7,071 | 6,790 | 5,428 | 4,748 | 4,467 | 4,605 |
| Other consumer | 697 | 1,048 | 769 | 379 | 299 | 373 |
| Total nonperforming loans | 114,220 | 89,798 | 81,886 | 82,513 | 80,368 | 89,323 |
| Real estate owned | 7,202 | 4,482 | 9,392 | 12,315 | 6,955 | 8,647 |
| Total nonperforming assets | $ 121,422 | $ 94,280 | $ 91,278 | $ 94,828 | $ 87,323 | $ 97,970 |
| | | | | | | |
| Accruing troubled debt restructurings (TDR) | $ 42,358 | $ 43,888 | $ 45,282 | $ 18,794 | $ 27,027 | $ 21,607 |
| Acquired loans 90 days past due still accruing(2) | 128,831 | 143,237 | 143,270 | 134,869 | 62,942 | 58,097 |
| Total classified loans(3) | 753,536 | 748,375 | 692,961 | 700,813 | 564,037 | 481,074 |
| Total criticized loans(4) | $ 1,044,731 | $ 1,144,222 | $ 1,268,879 | $ 1,253,937 | $ 972,148 | $ 942,941 |
| | | | | | | |
| Total nonperforming loans to loans | 0.68% | 0.55% | 0.50% | 0.51% | 0.75% | 0.85% |
| Total nonperforming loans to originated loans(1) | 1.09% | 0.91% | 0.87% | 0.93% | 0.98% | 1.14% |
| Total nonperforming assets to loans and real estate owned | 0.72% | 0.57% | 0.56% | 0.58% | 0.81% | 0.93% |
| Total nonperforming assets to assets | 0.34% | 0.29% | 0.29% | 0.31% | 0.41% | 0.46% |
| Allowance to nonperforming loans | 111.0% | 133.7% | 137.7% | 129.7% | 124.6% | 106.8% |
| Texas ratio(5) | 8.73% | 8.55% | 10.19% | 10.12% | 8.51% | 8.94% |
| | | | | | | |
| (1) Originated loans represent total loans excluding acquired loans. |
| (2) All such loans represent acquired loans that were originally recorded at fair value upon acquisition. These loans are considered to be accruing as we primarily recognize interest income through the accretion of the difference between the carrying value of these loans and their expected cash flows. |
| (3) Includes consumer loans, which are considered classified when they are 90 days or more past due. Classified loans include substandard, doubtful, and loss, which are consistent with regulatory definitions, and as described in Item 1, "Business", under the heading "Classification of Assets" in our Annual Report on 10-K for the year ended December 31, 2011. |
| (4) Beginning in the third quarter of 2011, criticized loans include consumer loans when they are 90 days or more past due. Prior to the third quarter of 2011, criticized loans include consumer loans when they are 60 days or more past due. The impact of the change at September 30, 2011 was a reduction of criticized loans by $24 million. Criticized loans include special mention, substandard, doubtful, and loss. |
| (5) Represents ratio computed using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail. |
| |
| |
| First Niagara Financial Group, Inc. |
| Key Statistics |
| (Share counts in thousands) |
| | | | | | | | | |
| | 2012 | 2011 | 2010 |
| | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, |
| | | | | | | | | |
| First Niagara Financial Group, Inc capital ratios: | | | | | | | | |
| Tier 1 risk based capital | 14.65% | (1) | 15.60% | (1) | 11.90% | 12.05% | 13.32% | 13.54% |
| Tier 1 common capital(2) | 12.46% | (1) | 13.23% | (1) | 11.29% | 11.41% | 12.56% | 12.76% |
| Total risk based capital | 16.75% | (1) | 17.84% | (1) | 12.56% | 12.69% | 14.13% | 14.35% |
| Leverage | 9.67% | (1) | 9.97% | (1) | 7.42% | 7.81% | 8.21% | 8.14% |
| Equity to assets | 13.73% | (1) | 14.62% | (1) | 12.82% | 12.93% | 12.94% | 13.11% |
| Tangible common equity to tangible assets(2) | 8.13% | (1) | 8.57% | (1) | 7.44% | 7.44% | 8.20% | 8.27% |
| | | | | | | | | |
| First Niagara Bank, N.A capital ratios: | | | | | | | | |
| Tier 1 risk based capital | 14.68% | (1) | 14.66% | (1) | 11.51% | 11.72% | 11.23% | 11.06% |
| Total risk based capital | 15.65% | (1) | 16.47% | (1) | 12.17% | 12.37% | 12.04% | 11.86% |
| Leverage | 9.69% | (1) | 9.38% | (1) | 7.17% | 7.58% | 6.92% | 6.64% |
| | | | | | | | | |
| Number of branches | 334 | | 333 | | 332 | 346 | 257 | 257 |
| Full time equivalent employees | 4,753 | | 4,827 | | 4,712 | 4,751 | 3,825 | 3,791 |
| | | | | | | | | |
| Share information and per share metrics: | | | | | | | | |
| Common shares outstanding | 351,936 | | 351,834 | | 294,898 | 295,245 | 209,432 | 209,112 |
| Treasury shares | 14,066 | | 14,168 | | 14,192 | 13,845 | 5,674 | 5,994 |
| Book value per share(3) | $ 13.00 | | $ 12.79 | | $ 13.72 | $13.68 | $13.45 | $13.42 |
| Tangible book value per share(2)(3) | 7.86 | | 7.62 | | 7.50 | 7.41 | 8.08 | 8.01 |
| Price/Book | 75.69% | | 67.47% | | 66.69% | 96.49% | 100.97% | 104.17% |
| Price/Tangible book(2) | 125.19% | | 113.25% | | 122.00% | 178.14% | 168.07% | 174.53% |
| Common stock dividends | $ 0.08 | | $ 0.16 | | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.15 |
| Preferred stock dividends | 0.37 | | -- | | -- | -- | -- | -- |
| Dividend payout ratio | 50.00% | | 84.21% | | 84.21% | N/M | 72.73% | 68.18% |
| Dividend yield (annualized) | 3.27% | | 7.36% | | 6.94% | 4.86% | 4.78% | 4.26% |
| | | | | | | | | |
| N/M Not meaningful |
| (1) Ratios reflect the impact of our capital raise completed in December 2011, the proceeds of which will be used to consummate the pending acquisition of branches from HSBC Bank-USA, National Association in 2012. |
| (2) The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail. |
| (3) Share count excludes unallocated ESOP shares and unvested restricted stock shares. |
| |
| |
| First Niagara Financial Group, Inc. |
| Appendix A - Non-GAAP Reconciliation |
| (in thousands, except per share amounts) |
| | | | | | | |
| | 2012 | 2011 | 2010 |
| | First | Fourth | Third | Second | First | Fourth |
| | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter |
| Reconciliation of noninterest expense on operating basis to reported noninterest expense(1): | | | | | | |
| Total noninterest expense on operating basis (Non-GAAP) | $ 184,505 | $ 182,526 | $ 178,537 | $ 166,657 | $ 137,918 | $ 133,429 |
| Salaries and benefits | -- | -- | -- | -- | -- | -- |
| Merger and acquisition integration expenses | 12,970 | 6,149 | 9,008 | 76,828 | 6,176 | 5,905 |
| Restructuring charges | 2,703 | 13,496 | 16,326 | 11,656 | 1,056 | -- |
| Total reported noninterest expense (GAAP) | $ 200,178 | $ 202,171 | $ 203,871 | $ 255,141 | $ 145,150 | $ 139,334 |
| | | | | | | |
| Reconciliation of net operating income to net income(1): | | | | | | |
| Net operating income (Non-GAAP) | $ 70,053 | $ 72,057 | $ 73,645 | $ 71,242 | $ 49,774 | $ 49,664 |
| Nonoperating expenses, net of tax: | | | | | | |
| Salaries and benefits | -- | -- | -- | -- | -- | -- |
| Merger and acquisition integration expenses | 8,431 | 4,256 | 5,925 | 50,092 | 4,147 | 3,809 |
| Restructuring charges | 1,757 | 9,340 | 10,739 | 7,600 | 709 | -- |
| Total nonoperating expenses, net of tax | 10,188 | 13,596 | 16,664 | 57,692 | 4,856 | 3,809 |
| Net income (GAAP) | $ 59,865 | $ 58,461 | $ 56,981 | $ 13,550 | $ 44,918 | $ 45,855 |
| | | | | | | |
| Reconciliation of net operating income available to common stockholders to net income available to common stockholders(1): | | | | | | |
| Net operating income available to common stockholders (Non-GAAP) | $ 64,938 | $ 72,057 | $ 73,645 | $ 71,242 | $ 49,774 | $ 49,664 |
| Nonoperating expenses, net of tax: | | | | | | |
| Salaries and benefits | -- | -- | -- | -- | -- | -- |
| Merger and acquisition integration expenses | 8,431 | 4,256 | 5,925 | 50,092 | 4,147 | 3,809 |
| Restructuring charges | 1,757 | 9,340 | 10,739 | 7,600 | 709 | -- |
| Total nonoperating expenses, net of tax | 10,188 | 13,596 | 16,664 | 57,692 | 4,856 | 3,809 |
| Net income available to common stockholders (GAAP) | $ 54,750 | $ 58,461 | $ 56,981 | $ 13,550 | $ 44,918 | $ 45,855 |
| | | | | | | |
| Computation of pre-tax, pre-provision income: | | | | | | |
| Net interest income | $ 242,371 | $ 242,513 | $ 235,429 | $ 230,437 | $ 172,868 | $ 167,548 |
| Noninterest income | 69,908 | 63,685 | 68,655 | 60,895 | 52,074 | 54,112 |
| Noninterest expense | (200,178) | (202,171) | (203,871) | (255,141) | (145,150) | (139,334) |
| Pre-tax, pre-provision income (GAAP) | 112,101 | 104,027 | 100,213 | 36,191 | 79,792 | 82,326 |
| Add back: non-operating noninterest expenses (1) | 15,673 | 19,645 | 25,334 | 88,484 | 7,232 | 5,905 |
| Pre-tax, pre-provision income (Non-GAAP)(1) | $ 127,774 | $ 123,672 | $ 125,547 | $ 124,675 | $ 87,024 | $ 88,231 |
| | | | | | | |
| Financial ratios computed on an operating basis(1): | | | | | | |
| Earnings per basic share | $ 0.19 | $ 0.24 | $ 0.25 | $ 0.25 | $ 0.24 | $ 0.24 |
| Earnings per diluted share | 0.19 | 0.24 | 0.25 | 0.25 | 0.24 | 0.24 |
| Weighted average shares outstanding - basic(2) | 348,823 | 304,065 | 292,211 | 281,496 | 206,124 | 205,901 |
| Weighted average shares outstanding - diluted(2) | 349,069 | 304,341 | 292,503 | 282,420 | 206,644 | 206,229 |
| Pre-tax, pre-provision income | 127,774 | 123,672 | 125,547 | 124,675 | 87,024 | 88,231 |
| Pre-tax, pre-provision income per diluted share | 0.37 | 0.41 | 0.43 | 0.44 | 0.42 | 0.43 |
| Pre-tax, pre-provision return on average assets | 1.55% | 1.55% | 1.61% | 1.72% | 1.67% | 1.67% |
| Net interest margin(3) | 3.34% | 3.48% | 3.48% | 3.65% | 3.80% | 3.65% |
| Interest yield on average loans(3) | 4.62% | 4.76% | 4.73% | 4.93% | 5.12% | 5.24% |
| Rate paid on interest-bearing liabilities(3) | 0.79% | 0.82% | 0.87% | 0.84% | 0.90% | 0.93% |
| Efficiency ratio | 59.08% | 59.61% | 58.71% | 57.21% | 61.30% | 60.20% |
| Effective tax rate | 35.0% | 34.7% | 33.7% | 33.6% | 32.9% | 33.5% |
| Noninterest income as a percentage of net revenue(4) | 22.39% | 20.80% | 22.58% | 20.90% | 23.10% | 24.41% |
| Return on average assets | 0.85% | 0.90% | 0.94% | 0.98% | 0.96% | 0.94% |
| Return on average equity | 5.81% | 6.82% | 7.25% | 7.44% | 7.27% | 6.99% |
| Return on average tangible equity(5) | 9.24% | 12.02% | 13.28% | 13.61% | 12.12% | 11.52% |
| Return on average common equity | 5.79% | 6.93% | 7.25% | 7.44% | 7.27% | 6.99% |
| Return on average tangible common equity(6) | 9.63% | 12.36% | 13.28% | 13.61% | 12.12% | 11.52% |
| | | | | | | |
| (1) Noninterest expense on an operating basis, net operating income, and pre-tax, pre-provision income on an operating basis are non-GAAP measures that we believe provide meaningful comparisons of our underlying operational performance and facilitates investors' assessments of business and performance trends in comparison to others in the financial services industry. In addition, we believe exclusion of these nonoperating items enables management to perform a more effective evaluation and comparison of our results and to assess performance in relation to our ongoing operations. |
| (2) Share count excludes unallocated ESOP shares and unvested restricted stock shares. |
| (3) Yields and rates calculated on a tax equivalent basis. |
| (4) Net revenue is comprised of net interest income and noninterest income. |
| (5) Tangible equity is a non-GAAP measure and excludes goodwill and other intangibles. |
| (6) Tangible common equity is a non-GAAP measure and excludes goodwill and other intangibles as well as preferred stock. |
| |
| |
| First Niagara Financial Group, Inc. |
| Appendix A - Non-GAAP Reconciliation (Cont.) |
| (in thousands, except per share amounts) |
| | | | | | | |
| | 2012 | 2011 | 2010 |
| | First | Fourth | Third | Second | First | Fourth |
| | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter |
| Computation of Ending Tangible Assets: | | | | | | |
| Total assets | $ 35,517,805 | $ 32,810,615 | $ 31,209,507 | $ 30,889,646 | $ 21,439,845 | $ 21,083,853 |
| Less: Goodwill and other intangibles | (1,796,394) | (1,803,240) | (1,812,628) | (1,829,712) | (1,108,811) | (1,114,144) |
| Tangible assets | $ 33,721,411 | $ 31,007,375 | $ 29,396,879 | $ 29,059,934 | $ 20,331,034 | $ 19,969,709 |
| | | | | | | |
| Computation of Ending Tangible Equity: | | | | | | |
| Total stockholders' equity | $ 4,875,446 | $ 4,798,178 | $ 4,000,675 | $ 3,992,835 | $ 2,775,032 | $ 2,765,070 |
| Less: Goodwill and other intangibles | (1,796,394) | (1,803,240) | (1,812,628) | (1,829,712) | (1,108,811) | (1,114,144) |
| Tangible equity | $ 3,079,052 | $ 2,994,938 | $ 2,188,047 | $ 2,163,123 | $ 1,666,221 | $ 1,650,926 |
| | | | | | | |
| Computation of Ending Tangible Common Equity: | | | | | | |
| Total stockholders' equity | $ 4,875,446 | $ 4,798,178 | $ 4,000,675 | $ 3,992,835 | $ 2,775,032 | $ 2,765,070 |
| Less: Goodwill and other intangibles | (1,796,394) | (1,803,240) | (1,812,628) | (1,829,712) | (1,108,811) | (1,114,144) |
| Less: Preferred stockholders' equity | (338,002) | (338,002) | -- | -- | -- | -- |
| Tangible common equity | $ 2,741,050 | $ 2,656,936 | $ 2,188,047 | $ 2,163,123 | $ 1,666,221 | $ 1,650,926 |
| | | | | | | |
| Computation of Average Tangible Equity: | | | | | | |
| Total stockholders' equity | $ 4,850,276 | $ 4,188,800 | $ 4,027,572 | $ 3,839,101 | $ 2,777,266 | $ 2,818,265 |
| Less: Goodwill and other intangibles | (1,800,613) | (1,809,690) | (1,827,820) | (1,738,948) | (1,112,329) | (1,107,958) |
| Tangible equity | $ 3,049,663 | $ 2,379,110 | $ 2,199,752 | $ 2,100,153 | $ 1,664,937 | $ 1,710,307 |
| | | | | | | |
| Computation of Average Tangible Common Equity: | | | | | | |
| Total stockholders' equity | $ 4,850,276 | $ 4,188,800 | $ 4,027,572 | $ 3,839,101 | $ 2,777,266 | $ 2,818,265 |
| Less: Goodwill and other intangibles | (1,800,613) | (1,809,690) | (1,827,820) | (1,738,948) | (1,112,329) | (1,107,958) |
| Less: Preferred stockholders' equity | (338,002) | (66,226) | -- | -- | -- | -- |
| Tangible common equity | $ 2,711,661 | $ 2,312,884 | $ 2,199,752 | $ 2,100,153 | $ 1,664,937 | $ 1,710,307 |
| | | | | | | |
| Computation of Texas Ratio: | | | | | | |
| Nonperforming Assets | $ 121,422 | $ 94,280 | $ 91,278 | $ 94,828 | $ 87,323 | $ 97,970 |
| Acquired loans 90 days past due still accruing(1) | 128,831 | 143,237 | 143,270 | 134,869 | 62,942 | 58,097 |
| Sum of nonperforming assets and acquired loans 90 days past due still accruing | $ 250,253 | $ 237,517 | $ 234,548 | $ 229,697 | $ 150,265 | $ 156,067 |
| | | | | | | |
| Tangible common equity | $ 2,741,050 | $ 2,656,936 | $ 2,188,047 | $ 2,163,123 | $ 1,666,221 | $ 1,650,926 |
| Allowance for loan loss | 126,746 | 120,100 | 112,749 | 107,028 | 100,126 | 95,354 |
| Sum of tangible common equity and allowance for loan loss | $ 2,867,796 | $ 2,777,036 | $ 2,300,796 | $ 2,270,151 | $ 1,766,347 | $ 1,746,280 |
| | | | | | | |
| Sum of nonperforming assets and acquired loans 90 days past due still accruing/Sum of tangible common equity and allowance for loan loss | 8.73% | 8.55% | 10.19% | 10.12% | 8.51% | 8.94% |
| | | | | | | |
| Computation of Tier 1 Common Capital: | | | | | | |
| Tier 1 capital | $ 3,009,727 | $ 2,962,031 | $ 2,151,953 | $ 2,118,085 | $ 1,632,307 | $ 1,601,892 |
| Less: Qualifying restricted core capital elements | (111,453) | (111,284) | (111,112) | (110,920) | (92,944) | (92,899) |
| Less: Perpetual non-cumulative preferred stock | (338,002) | (338,002) | -- | -- | -- | -- |
| Tier 1 common capital (Non-GAAP) | $ 2,560,272 | $ 2,512,745 | $ 2,040,841 | $ 2,007,165 | $ 1,539,363 | $ 1,508,993 |
| | | | | | | |
| (1) All such loans represent acquired loans that were originally recorded at fair value upon acquisition. These loans are considered to be accruing as we primarily recognize interest income through the accretion of the difference between the carrying value of these loans and their expected cash flows. |
CONTACT: Investors:
Ram Shankar
Senior Vice President, Investor Relations
(716) 270-8623
ram.shankar@fnfg.com
News Media:
David Lanzillo
Senior Vice President, Corporate Communications
(716) 819-5780
david.lanzillo@fnfg.com