First Niagara Financial Group, Inc.
Exhibit 99.2 - Summary of Quarterly Financial Data
2002 2001
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As of Second First As of Fourth Third Second
June 30, Quarter Quarter December 31, Quarter Quarter Quarter
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SELECTED FINANCIAL DATA
(Amounts in thousands)
Total assets $2,872,223 2,872,223 2,854,763 2,857,946 2,857,946 2,749,182 2,656,056
Total interest-earning assets $2,614,950 2,614,950 2,603,948 2,596,371 2,596,371 2,434,517 2,407,211
Fed funds and other short-term
investments $ 125,177 125,177 147,801 22,231 22,231 13,981 25,575
Securities, at amortized cost $ 550,720 550,720 553,310 689,293 689,293 530,347 509,930
Loans:
Real estate loans:
One-to four-family $ 944,268 944,268 962,433 980,638 980,638 1,017,555 1,048,366
Home equity $ 130,642 130,642 121,212 114,443 114,443 110,201 107,602
Multi-family $ 145,650 145,650 142,955 133,439 133,439 128,513 114,558
Commercial real-estate $ 291,778 291,778 264,397 259,457 259,457 251,120 236,043
Construction $ 82,133 82,133 77,204 64,502 64,502 56,701 50,564
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Total real estate loans $1,594,471 1,594,471 1,568,201 1,552,479 1,552,479 1,564,090 1,557,133
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Commercial business loans $ 154,778 154,778 143,121 135,621 135,621 124,398 108,234
Consumer loans $ 178,725 178,725 181,182 182,126 182,126 186,163 187,278
Net deferred costs and discounts $ 2,365 2,365 1,786 1,642 1,642 1,629 1,352
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Total loans $1,930,339 1,930,339 1,894,290 1,871,868 1,871,868 1,876,280 1,853,997
Goodwill and other intangibles $ 80,776 80,776 81,016 81,010 81,010 82,555 83,595
Total interest-bearing liabilities $2,431,133 2,431,133 2,436,611 2,439,975 2,439,975 2,330,299 2,264,325
Deposits:
Interest-bearing deposits:
Savings accounts $ 623,412 623,412 551,002 450,762 450,762 416,215 415,003
Interest-bearing checking $ 512,719 512,719 528,416 549,306 549,306 556,133 549,483
Certificates of deposits $ 871,759 871,759 930,545 863,717 863,717 906,571 877,562
Mortgagors' payments held in
escrow $ 16,387 16,387 10,523 17,150 17,150 15,400 18,105
Noninterest-bearing deposits $ 123,997 123,997 111,804 109,895 109,895 98,775 95,231
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Total deposits $2,148,274 2,148,274 2,132,290 1,990,830 1,990,830 1,993,094 1,955,384
Short-term borrowings $ 72,633 72,633 72,251 212,992 212,992 86,802 89,654
Long-term borrowings $ 334,223 334,223 343,874 346,048 346,048 349,178 314,518
Stockholders' equity $ 272,303 272,303 264,202 260,617 260,617 258,958 252,157
Tangible equity (1) $ 191,527 191,527 183,186 179,607 179,607 176,403 168,562
Fair value adjustment included in
stockholders' equity $ 3,197 3,197 454 2,561 2,561 4,435 1,849
Common shares outstanding 24,925 24,925 24,856 24,802 24,802 24,787 24,732
Total loans serviced for others $ 255,818 255,818 249,469 252,267 252,267 239,978 215,240
2002 2001
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Year-to-Date Second First Year-to-Date Fourth Third Second
June 30, Quarter Quarter December 31, Quarter Quarter Quarter
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SELECTED AVERAGE BALANCES (2)
(Amounts in thousands)
Total assets ............................ $2,821,448 2,869,204 2,773,161 2,679,331 2,717,984 2,715,856 2,653,536
Total interest-earning assets ........... $2,567,134 2,617,506 2,516,202 2,429,167 2,468,392 2,460,606 2,404,694
Fed funds and other short-term
investments ........................... $ 98,319 121,566 74,813 39,533 41,753 50,335 41,189
Securities, at amortized cost ........... $ 559,266 573,919 544,451 519,278 540,023 530,910 503,638
Loans (3) ............................... $1,898,299 1,911,144 1,885,312 1,854,117 1,873,337 1,864,773 1,841,032
Goodwill and other intangibles .......... $ 81,024 80,932 81,116 83,621 81,984 83,235 84,382
Interest-bearing liabilities:
Savings accounts ..................... $ 545,717 592,461 498,453 417,256 427,122 415,986 413,549
Interest-bearing checking ............ $ 528,751 519,283 538,325 545,118 548,510 550,593 544,588
Certificates of deposits ............. $ 889,903 900,201 879,491 877,428 888,960 889,081 876,995
Mortgagors' payments held in
escrow ............................. $ 16,039 16,733 15,135 19,198 18,017 25,118 18,207
Other borrowed funds ................. $ 417,839 411,557 424,190 425,543 427,943 431,767 412,677
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Total interest-bearing
liabilities ...................... $2,398,249 2,440,235 2,355,594 2,284,543 2,310,552 2,312,545 2,266,016
Interest-bearing deposits ............... $1,980,410 2,028,678 1,931,404 1,859,000 1,882,609 1,880,778 1,853,339
Noninterest-bearing deposits ............ $ 107,497 111,738 103,410 90,023 99,527 92,875 87,450
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Total deposits ....................... $2,087,907 2,140,416 2,034,814 1,949,023 1,982,136 1,973,653 1,940,789
Stockholders' equity .................... $ 268,386 270,796 265,949 255,637 263,350 257,919 251,919
Tangible equity (1) ..................... $ 187,362 189,864 184,833 172,016 181,366 174,684 167,537
Common shares outstanding:
Basic ................................ 24,853 24,886 24,820 24,728 24,787 24,763 24,697
Diluted .............................. 25,347 25,425 25,246 25,010 25,165 25,188 24,982
First Niagara Financial Group, Inc.
Exhibit 99.2 - Summary of Quarterly Financial Data (Cont'd)
2002 2001
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Year-to-Date Second First Year-to-Date Fourth Third Second
June 30, Quarter Quarter December 31, Quarter Quarter Quarter
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SELECTED OPERATIONS DATA
(Amounts in thousands)
Interest income $ 85,069 42,536 42,533 178,368 43,774 44,880 44,627
Interest expense $ 40,147 19,828 20,319 99,352 22,686 24,787 25,537
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Net interest income $ 44,922 22,708 22,214 79,016 21,088 20,093 19,090
Provision for credit losses $ 3,260 1,730 1,530 4,160 1,150 1,110 860
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Net interest income after provision $ 41,662 20,978 20,684 74,856 19,938 18,983 18,230
Noninterest income:
Bank service charges and fees $ 6,816 3,477 3,339 10,222 3,187 2,388 2,419
Lending and leasing income $ 2,231 1,192 1,039 4,310 1,205 1,064 997
Insurance services and fees $ 10,627 5,553 5,074 18,456 4,549 4,420 4,700
Bank-owned life insurance earnings $ 1,337 683 654 2,507 679 647 598
Annuity and mutual fund commissions $ 1,246 773 473 1,750 470 427 408
Investment and fiduciary services $ 636 309 327 1,456 317 383 358
Other $ 882 578 304 3,371 705 842 777
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Total noninterest income $ 23,775 12,565 11,210 42,072 11,112 10,171 10,257
Noninterest expense:
Salaries and benefits $ 24,405 12,057 12,348 45,989 11,934 11,236 11,150
Occupancy and equipment $ 3,989 1,955 2,034 7,664 1,862 1,830 1,897
Technology and communications $ 4,395 2,345 2,050 7,642 2,112 1,775 1,765
Marketing and advertising $ 1,161 621 540 2,126 541 371 781
Amortization of goodwill and other
intangibles (4) $ 422 211 211 5,711 1,435 1,440 1,418
Other $ 6,439 3,176 3,263 13,873 3,930 3,321 3,490
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Total noninterest expense $ 40,811 20,365 20,446 83,005 21,814 19,973 20,501
Income before income taxes $ 24,626 13,178 11,448 33,923 9,236 9,181 7,986
Income taxes $ 8,385 4,387 3,998 12,703 3,440 3,432 2,973
New York State bad debt tax expense
recapture (5) $ 1,784 1,784 -- -- -- -- --
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Net income $ 14,457 7,007 7,450 21,220 5,796 5,749 5,013
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Add back: Goodwill amortization (4) $ -- -- -- 4,742 1,187 1,187 1,184
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Adjusted net income $ 14,457 7,007 7,450 25,962 6,983 6,936 6,197
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STOCK AND RELATED PER SHARE DATA
(Amounts in thousands)
Net income per share:
Basic $ 0.58 0.28 0.30 0.86 0.23 0.23 0.20
Diluted $ 0.57 0.28 0.30 0.85 0.23 0.23 0.20
Adjusted net income per share (4):
Basic $ 0.58 0.28 0.30 1.05 0.28 0.28 0.25
Diluted $ 0.57 0.28 0.30 1.04 0.28 0.28 0.25
Cash dividends $ 0.21 0.11 0.10 0.36 0.10 0.09 0.09
Dividend payout ratio 36.21% 39.29% 33.33% 41.86% 43.48% 39.13% 45.00%
Dividend yield (Annualized) (6) 1.53% 1.59% 2.33% 2.14% 2.36% 2.25% 2.32%
Book value $ 10.92 10.92 10.63 10.51 10.51 10.45 10.20
Tangible book value (1) $ 7.68 7.68 7.37 7.24 7.24 7.12 6.82
Market price (NASDAQ: FNFG):
High $ 29.99 29.99 19.45 17.90 17.45 17.90 15.99
Low $ 15.70 17.00 15.70 10.75 15.20 12.76 10.75
Close $ 27.76 27.76 17.44 16.83 16.83 15.87 15.53
PERFORMANCE RATIOS (2)
(Annualized)
Net income:
Return on average assets 1.03% 0.98% 1.09% 0.79% 0.85% 0.84% 0.76%
Return on average equity 10.86% 10.38% 11.36% 8.30% 8.73% 8.84% 7.98%
Return on average tangible equity (1) 15.56% 14.80% 16.35% 12.34% 12.68% 13.06% 12.00%
Adjusted net income (4):
Return on average assets 1.03% 0.98% 1.09% 0.97% 1.02% 1.01% 0.94%
Return on average equity 10.86% 10.38% 11.36% 10.16% 10.52% 10.67% 9.87%
Return on average tangible equity (1) 15.56% 14.80% 16.35% 15.09% 15.28% 15.75% 14.84%
Yield on interest-earning assets 6.65% 6.51% 6.80% 7.34% 7.07% 7.28% 7.43%
Rate on interest-bearing liabilities 3.38% 3.26% 3.50% 4.35% 3.90% 4.25% 4.52%
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Net interest rate spread 3.27% 3.25% 3.30% 2.99% 3.17% 3.03% 2.91%
Net interest margin as a percentage of
interest-earning assets 3.49% 3.47% 3.52% 3.25% 3.42% 3.28% 3.17%
As a percentage of average assets:
Noninterest income (7) 1.69% 1.75% 1.64% 1.57% 1.62% 1.47% 1.58%
Noninterest expense (4) 2.92% 2.85% 2.99% 2.92% 3.01% 2.74% 2.92%
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Net overhead 1.23% 1.10% 1.35% 1.35% 1.39% 1.27% 1.34%
Efficiency ratio (4) (7) 59.47% 57.87% 61.15% 64.59% 64.11% 62.28% 65.36%
First Niagara Financial Group, Inc.
Exhibit 99.2 - Summary of Quarterly Financial Data (Cont'd)
2002 2001
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As of Second First As of Fourth Third Second
June 30, Quarter Quarter December 31, Quarter Quarter Quarter
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CAPITAL RATIOS
Tier 1 capital 10.18% 10.18% 10.02% 10.27% 10.27% 9.96% 10.10%
Total capital 11.25% 11.25% 11.06% 11.36% 11.36% 11.05% 11.23%
Leverage capital 6.73% 6.73% 6.76% 6.71% 6.71% 6.47% 6.50%
Equity to assets 9.48% 9.48% 9.25% 9.12% 9.12% 9.42% 9.49%
Tangible equity to tangible assets (1) 6.86% 6.86% 6.60% 6.47% 6.47% 6.62% 6.55%
ASSET QUALITY DATA
(Amounts in thousands)
Non-performing loans:
One-to four-family $ 4,252 4,252 5,040 4,833 4,833 4,605 3,738
Home equity $ 488 488 504 491 491 488 486
Commercial real estate and
multi-family $ 2,240 2,240 2,365 2,402 2,402 2,208 1,723
Consumer $ 619 619 746 510 510 385 270
Commercial business $ 4,134 4,134 4,062 3,244 3,244 840 839
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Total non-performing loans $ 11,733 11,733 12,717 11,480 11,480 8,526 7,056
Other non-performing assets $ 310 310 676 665 665 693 651
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Total non-performing assets $ 12,043 12,043 13,393 12,145 12,145 9,219 7,707
Allowance for credit losses $ 19,694 19,694 18,983 18,727 18,727 18,651 18,573
Net loan charge-offs $ 2,293 1,019 1,274 3,179 1,074 1,032 435
Provision for credit losses as a
percentage of net loan charge-offs 142.17% 169.77% 120.09% 130.86% 107.08% 107.56% 197.70%
Total non-performing assets as a
percentage of total assets 0.42% 0.42% 0.47% 0.42% 0.42% 0.34% 0.29%
Total non-performing loans to total
loans 0.61% 0.61% 0.67% 0.61% 0.61% 0.45% 0.38%
Net charge-offs to average loans
(Annualized) 0.24% 0.21% 0.27% 0.17% 0.23% 0.22% 0.09%
Allowance for credit losses to
total loans 1.02% 1.02% 1.00% 1.00% 1.00% 0.99% 1.00%
Allowance for credit losses
to non-performing loans 167.85% 167.85% 149.27% 163.13% 163.13% 218.75% 263.22%
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Personnel FTE 941 941 932 919 919 911 918
Number of banking centers 38 38 38 37 37 37 36
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(1) Excludes goodwill and other intangibles.
(2) Averages presented are daily averages.
(3) Net of deferred costs and unearned discounts.
(4) With the adoption of SFAS No. 142 "Goodwill and Other Intangibles" on
January 1, 2002, the Company is no longer required to amortize goodwill.
Accordingly, for the prior periods presented, goodwill amortization has
been excluded from adjusted amounts for consistency purposes. The
remaining amortization relates to identifiable intangible assets (ie.
Customer lists).
(5) First Niagara Bank, a wholly owned subsidiary of the Company, is subject
to special provisions in the New York State tax law that allows it to
deduct on its tax return bad debt expenses in excess of those actually
incurred based on a specified formula ("excess reserve"). The Company is
required to repay this excess reserve if it does not maintain a certain
percentage of qualified assets (primarily residential mortgages and
mortgage-backed securities) to total assets, as prescribed by the tax
law. For accounting purposes, the Company is required to record a tax
liability for the recapture of this excess reserve when it can no longer
assert that the test will continue to be passed for the "foreseeable
future." As a result of the decision to combine its three banks, the
Company can no longer make this assertion and accordingly, recorded a
$1.8 million tax liability in the second quarter. It is anticipated that
this tax liability will be repaid over the next 10 - 15 years.
(6) Computed based upon the period end closing stock price.
(7) Excludes net gain/loss on sale of securities available for sale.