First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data
2005 2004
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September 30, June 30, March 31, December 31, September 30,
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SELECTED FINANCIAL DATA
(Amounts in thousands)
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Securities available for sale $ 1,663,178 1,726,822 1,741,486 1,170,129 1,171,011
Loans and leases:
Commercial:
Real estate $ 1,818,217 1,773,773 1,721,393 1,268,858 1,212,545
Business $ 479,473 482,855 462,549 345,520 342,382
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Total commercial loans $ 2,297,690 2,256,628 2,183,942 1,614,378 1,554,927
Residential real estate $ 2,136,961 2,117,609 2,114,420 1,132,471 1,150,032
Home equity $ 383,350 355,030 344,589 247,190 236,357
Other consumer $ 181,488 178,681 186,413 174,309 185,518
Specialized lending $ 159,935 158,361 154,380 79,358 80,264
Net deferred costs and discounts $ 16,153 13,798 12,573 8,971 9,123
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Total loans and leases $ 5,175,577 5,080,107 4,996,317 3,256,677 3,216,221
Allowance for credit losses $ 72,290 72,869 72,868 41,422 41,273
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Loans and leases, net $ 5,103,287 5,007,238 4,923,449 3,215,255 3,174,948
Goodwill and other intangibles $ 763,250 735,514 738,191 345,660 347,865
Total assets $ 8,039,284 7,982,290 7,907,976 5,078,374 5,065,135
Total interest-earning assets $ 6,905,767 6,838,326 6,780,978 4,445,724 4,410,707
Deposits:
Core:
Savings $ 1,652,552 1,664,203 1,705,258 1,086,769 1,066,321
Interest-bearing checking $ 1,130,264 1,170,013 1,241,760 912,598 919,378
Noninterest-bearing $ 569,308 567,134 524,219 291,491 285,322
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Total core deposits $ 3,352,124 3,401,350 3,471,237 2,290,858 2,271,021
Certificates $ 1,996,097 1,847,696 1,704,498 1,046,824 1,045,604
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Total deposits $ 5,348,221 5,249,046 5,175,735 3,337,682 3,316,625
Short-term borrowings $ 436,348 454,361 384,399 209,236 192,282
Long-term borrowings $ 726,979 790,967 851,461 541,450 532,996
Total interest-bearing liabilities $ 5,942,240 5,927,240 5,887,376 3,796,877 3,756,581
Stockholders' equity $ 1,380,970 1,381,168 1,390,713 928,162 937,307
Tangible equity (1) $ 617,720 645,654 652,522 582,502 589,442
Fair value adjustment included in
stockholders' equity $ (15,005) (8,080) (15,247) (5,106) (3,625)
Net earning assets $ 963,527 911,086 893,602 648,847 654,126
Common shares outstanding (2) 109,755 110,162 112,460 78,277 79,246
Treasury shares 6,075 5,680 3,327 1,781 747
Total loans serviced for others $ 372,341 368,436 372,461 325,125 326,936
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CAPITAL
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Tier 1 risk based capital 11.95% 12.01% 12.52% 16.40% 16.43%
Total risk based capital 13.20% 13.26% 13.77% 17.65% 17.68%
Tier 1 (core) capital 8.11% 8.10% 8.44% 11.40% 11.31%
Tangible capital 8.11% 8.10% 8.44% 11.40% 11.31%
Equity to assets 17.18% 17.30% 17.59% 18.28% 18.51%
Tangible equity to tangible assets (1) 8.49% 8.91% 9.10% 12.31% 12.50%
Book value per share (2) $ 12.58 12.54 12.37 11.86 11.83
Tangible book value per share (1)(2) $ 5.63 5.86 5.80 7.44 7.44
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ASSET QUALITY DATA
(Amounts in thousands)
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Non-performing loans:
Commercial real estate $ 8,791 4,339 4,513 3,416 5,414
Commercial business $ 2,541 3,864 2,005 1,564 1,745
Residential real estate $ 5,389 5,472 7,694 4,276 4,536
Home equity $ 621 685 803 519 390
Other consumer $ 1,060 667 915 801 677
Specialized lending $ 3,945 4,058 4,148 1,452 2,177
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Total non-performing loans $ 22,347 19,085 20,078 12,028 14,939
Real estate owned $ 1,097 977 1,111 740 691
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Total non-performing assets $ 23,444 20,062 21,189 12,768 15,630
Provision for credit losses $ 1,647 900 2,301 1,846 1,742
Net loan charge-offs $ 2,226 899 1,539 1,697 1,903
Net charge-offs to average loans (annualized) 0.17% 0.07% 0.13% 0.21% 0.24%
Provision for credit losses as a
percentage of average loans (annualized) 0.13% 0.07% 0.19% 0.23% 0.22%
Total non-performing loans to total loans 0.43% 0.38% 0.40% 0.37% 0.46%
Total non-performing assets as a
percentage of total assets 0.29% 0.25% 0.27% 0.25% 0.31%
Allowance for credit losses to total loans 1.40% 1.43% 1.46% 1.27% 1.28%
Allowance for credit losses
to non-performing loans 323.5% 381.8% 362.9% 344.4% 276.3%
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Personnel FTE 1,922 1,777 1,720 1,200 1,207
Number of branches 117 116 115 71 71
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2005 2004
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Year-to-Date Third Second First Year Ended Fourth Third
September 30, Quarter Quarter Quarter December 31, Quarter Quarter
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SELECTED OPERATIONS DATA
(Amounts in thousands)
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Interest income $ 276,742 96,297 93,930 86,515 224,578 58,954 56,818
Interest expense $ 89,454 32,801 30,368 26,285 68,476 18,028 17,180
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Net interest income $ 187,288 63,496 63,562 60,230 156,102 40,926 39,638
Provision for credit losses $ 4,848 1,647 900 2,301 8,442 1,846 1,742
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Net interest income after
provision for credit losses $ 182,440 61,849 62,662 57,929 147,660 39,080 37,896
Noninterest income:
Banking services $ 27,552 10,115 9,448 7,989 19,818 5,378 5,296
Risk management services $ 20,871 8,840 6,162 5,869 17,391 4,193 4,308
Wealth management services $ 4,327 1,435 1,451 1,441 4,764 1,172 1,257
Lending and leasing $ 5,269 1,923 1,770 1,576 4,676 1,359 1,117
Bank-owned life insurance $ 3,093 965 1,072 1,056 3,761 860 826
Other $ 3,340 2,362 498 480 1,456 559 303
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Total noninterest income $ 64,452 25,640 20,401 18,411 51,866 13,521 13,107
Noninterest expense:
Salaries and benefits $ 71,892 26,006 23,677 22,209 65,264 16,676 16,790
Occupancy and equipment $ 13,919 4,765 4,677 4,477 12,513 2,958 3,079
Technology and communications $ 13,982 5,091 4,827 4,064 11,499 3,163 2,883
Marketing and advertising $ 5,539 1,685 2,143 1,711 4,738 1,403 998
Professional services $ 6,064 1,718 1,802 2,544 5,117 1,889 1,460
Amortization of intangibles $ 8,616 3,254 2,854 2,508 4,605 1,218 1,182
Other $ 17,810 5,289 6,181 6,340 17,114 4,737 3,986
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Total noninterest expense $ 137,822 47,808 46,161 43,853 120,850 32,044 30,378
Income before income taxes $ 109,070 39,681 36,902 32,487 78,676 20,557 20,625
Income taxes $ 39,711 15,508 12,811 11,392 26,859 6,998 7,295
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Net income $ 69,359 24,173 24,091 21,095 51,817 13,559 13,330
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STOCK AND RELATED PER SHARE DATA
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Net income per share:
Basic $ 0.63 0.22 0.22 0.19 0.66 0.17 0.17
Diluted $ 0.63 0.22 0.22 0.19 0.65 0.17 0.17
Cash dividends $ 0.28 0.10 0.09 0.09 0.30 0.08 0.08
Dividend payout ratio 44.44% 45.45% 40.91% 47.37% 45.45% 47.06% 47.06%
Dividend yield (annualized) 2.59% 2.75% 2.48% 2.76% 2.15% 2.28% 2.38%
Market price (NASDAQ: FNFG):
High $ 15.16 15.16 14.65 14.16 15.78 14.85 14.00
Low $ 12.05 13.78 12.05 12.80 11.49 13.18 11.84
Close $ 14.44 14.44 14.58 13.21 13.95 13.95 13.38
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SELECTED RATIOS
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Net income (annualized):
Return on average assets 1.19% 1.20% 1.22% 1.15% 1.05% 1.06% 1.05%
Return on average equity 6.75% 6.89% 6.95% 6.40% 5.59% 5.76% 5.67%
Return on average tangible
equity (1) 14.18% 14.84% 14.81% 12.89% 8.75% 9.16% 9.04%
Noninterest income as a percentage
of net revenue 25.60% 28.77% 24.30% 23.41% 24.94% 24.83% 24.85%
Efficiency ratio 54.7% 53.6% 55.0% 55.8% 58.1% 58.9% 57.6%
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2005 2004
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Year-to-Date Third Second First Year Ended Fourth Third
September 30, Quarter Quarter Quarter December 31, Quarter Quarter
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SELECTED AVERAGE BALANCES
(Amounts in thousands)
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Securities, at amortized cost $1,700,832 1,684,748 1,750,517 1,667,038 1,177,203 1,175,149 1,191,767
Loans (3) $4,938,003 5,097,883 5,014,075 4,697,778 3,109,335 3,230,411 3,177,191
Total interest-earning assets $6,703,027 6,866,195 6,826,189 6,411,701 4,332,665 4,439,570 4,408,057
Goodwill and other intangibles $ 719,037 746,494 737,231 672,573 335,796 347,376 347,715
Total assets $7,798,740 8,002,582 7,934,615 7,452,984 4,949,717 5,075,322 5,033,077
Interest-bearing liabilities:
Savings accounts $1,649,212 1,669,466 1,675,953 1,601,471 1,033,983 1,075,082 1,074,032
Checking $1,176,003 1,151,334 1,187,863 1,189,229 889,372 918,571 928,300
Certificates of deposit $1,759,985 1,905,781 1,800,333 1,570,152 1,081,034 1,043,603 1,039,097
Borrowed funds $1,201,764 1,183,924 1,239,808 1,181,532 677,784 741,044 686,437
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Total interest-bearing
liabilities $5,786,964 5,910,505 5,903,957 5,542,384 3,682,173 3,778,300 3,727,866
Noninterest-bearing deposits $ 538,579 584,871 547,366 482,375 275,227 292,066 303,244
Total liabilities $6,425,618 6,609,765 6,544,716 6,116,957 4,021,960 4,138,949 4,098,522
Stockholders' equity $1,373,122 1,392,817 1,389,899 1,336,026 927,757 936,373 934,555
Tangible equity (1) $ 654,085 646,323 652,668 663,453 591,961 588,997 586,840
Net earning assets $ 916,063 955,690 922,232 869,317 650,492 661,270 680,191
Common shares outstanding (2):
Basic 109,859 110,227 111,128 108,200 78,750 78,735 79,257
Diluted 110,858 111,239 112,033 109,246 79,970 79,882 80,312
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SELECTED AVERAGE YIELDS/RATES
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Securities, at amortized cost 3.42% 3.49% 3.42% 3.35% 2.86% 2.97% 2.91%
Loans 6.26% 6.31% 6.26% 6.21% 6.14% 6.21% 6.05%
Total interest-earning assets 5.51% 5.59% 5.51% 5.43% 5.18% 5.30% 5.15%
Savings accounts 1.04% 1.13% 1.01% 0.98% 0.94% 1.01% 0.95%
Interest-bearing checking 1.07% 1.14% 1.08% 1.00% 0.93% 1.02% 0.94%
Certificates of deposit 2.62% 2.86% 2.61% 2.32% 2.21% 2.24% 2.17%
Borrowed funds 3.65% 3.70% 3.64% 3.62% 3.91% 3.80% 3.90%
Total interest-bearing
liabilities 2.07% 2.20% 2.06% 1.92% 1.86% 1.90% 1.83%
Net interest rate spread 3.44% 3.39% 3.45% 3.51% 3.32% 3.40% 3.32%
Net interest rate margin 3.72% 3.69% 3.72% 3.76% 3.60% 3.69% 3.60%
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(1) Excludes goodwill and other intangible assets.
(2) Excludes unallocated ESOP shares and unvested restricted stock shares.
(3) Net of deferred costs and unearned discounts.