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First Niagara
Financial Group, Inc.
FIRST NIAGARA FINANCIAL GROUP REPORTS 2006 FOURTH QUARTER AND FULL YEAR RESULTS
Overall Results Reflect Continuing Focus on Strategic and Performance Objectives
Lockport, N.Y. - January 25, 2007 - First Niagara Financial Group, Inc. (NASDAQ:
FNFG), today announced results for the fourth quarter and full year 2006 that
reflect the benefits of the Company's continuing focus on effectively building
its business and improving its earning asset mix to reduce the impact of margin
compression caused by rising rates and the flat to inverted yield curve.
Net income of $20.9 million for the fourth quarter of 2006, or $0.19 per diluted
share compared to $23.5 million, or $0.21 per diluted share for the fourth
quarter of 2005. On a linked quarter basis, these results compare to net income
of $23.6 million, or $0.22 per diluted share. For the full year, net income was
$91.9 million, or $0.85 per diluted share, compared to $92.9 million, or $0.84
per diluted share for 2005.
"Overall, 2006 was a very solid year for First Niagara in an extremely
challenging rate and competitive environment," said John R. Koelmel, President,
Chief Operating Officer and Acting Chief Executive Officer. "We enhanced and
expanded customer relationships to achieve significant increases in average loan
and deposit balances - especially in commercial loan and home equity portfolios
as well as non-interest bearing deposits - while maintaining stellar credit
quality. To support future growth, we continued to build out our branch network
in Buffalo and Rochester adding six branches to our franchise in 2006 with
another five planned for 2007. To better serve our business customers, we
combined all our employee benefits businesses into First Niagara Benefits
Consulting (FNBC) and have established regional market centers in all of our
major urban markets. We also exited non-core business lines such as indirect
automobile and manufactured housing lending to better align all our resources
and energies on the continued profitable growth of our consumer, commercial and
financial services businesses. Our focus on effectively and efficiently
providing customer value across our franchise enhanced our financial performance
in 2006 and enabled us to advance many of our strategic objectives."
Koelmel noted that earnings per share for the year increased approximately 1%,
even with the impact of significant nonrecurring charges, while average loan and
deposit balances increased 10% and 7%, respectively, over 2005.
"The benefits of our strong growth and improved asset mix were masked by the
effects of a flat rate curve and compressed margin, as well as our year long
wholesale deleverage initiative," Koelmel said. "Very positive credit experience
and expense management also contributed to our success and minimized the impact
of our revenue growth challenges. Although fourth quarter results were adversely
affected by a number of nonrecurring charges, our core operating results reflect
our continuing efforts to further position the Company for long-term success."
Results in the 2006 fourth quarter were affected by severance charges totaling
$3.3 million, including, as previously disclosed, $2.4 million related to the
CEO change. Those charges reduced net income per diluted share by $0.02 for the
2006 fourth quarter.
During the fourth quarter of 2006, average total loans increased $33.2 million
to $5.7 billion from the linked quarter, a 2% annualized increase. The growth
was achieved in spite of the impact of more than $350 million in loan payoffs
during the quarter and increased competitive pricing pressure. For the full
year, average total loans increased 10% with total commercial loan balances
rising 12% and the home equity portfolio up 24%. At December 31, 2006,
outstanding commercial loan commitments increased to $268.6 million, which
includes $163.9 million in commercial real estate construction loans. The
benefit of the improving asset mix, the continued repricing of variable rate
assets and the positive impact of prepayment and other fees related to the
commercial loan payoffs resulted in a 15 basis point improvement in the taxable
equivalent yield on interest-earning assets to 6.21% for the quarter.
Total deposits of $5.7 billion at December 31, 2006, which increased 9%
annualized compared to September 30, 2006, included double digit increases in
checking and non-interest bearing balances. While average balances were
consistent on a linked quarter basis, the year end increase reflects the
benefits of our relationship-based focus on core account growth, which is
essential given the impact of the continuing rise in deposit rates. For the
quarter, the rate paid on deposits increased 20 basis points from the prior
three month period. For the full year, average total deposits increased 7%,
which included an 8% increase in noninterest-bearing accounts.
Average borrowings decreased an additional $105.0 million during the quarter as
outstanding advances at December 31, 2006 were down $171.8 million compared to
the prior quarter end. The impact of the continuing wholesale deleverage
resulted in a decrease in interest earning assets during the quarter, but helped
to mitigate the compression of the net interest margin. The taxable net interest
margin declined to 3.52% for the quarter from 3.54% for the linked quarter.
Credit quality was very favorable with non-performing loans of $15.5 million at
December 31, 2006, a $1.6 million decrease from $17.1 million at the end of the
third quarter. Non-performing loans to total loans were only 0.27% in the
quarter compared to 0.30% in the linked quarter and 0.41% a year earlier. Net
charge-offs to average loans were 0.15% annualized for the quarter and 0.12% for
the full year. The provision for credit losses of $1.3 million was consistent
with the provision in the linked quarter. At December 31, 2006, the allowance
for credit losses was 1.27% of total loans and 463% of non-performing loans,
compared to 1.37% and 330% respectively, a year ago.
Noninterest income for the fourth quarter of 2006 was $27.9 million, which
included the benefit of $1.0 million in gains related to the sale of a vacant
branch facility in Eastern New York. Compared to the linked quarter, which
included a $3.0 million gain on the sale of $24.7 million in manufactured
housing loans, operating fee income was consistent and reflects the impact of
the competitive banking environment as well as the industry wide softening of
personal and commercial insurance renewal rates. For the year ended December 31,
2006, noninterest income represented 31% of net revenues.
Noninterest expenses were comparable to the linked quarter, excluding the impact
of fourth quarter severance and third quarter costs associated with the Board of
Director reduction, totaling $3.3 million and $1.9 million, respectively. The
Company remains committed to minimizing expense growth, even while continuing to
invest in the build out and expansion of its franchise. Excluding the impact of
the Board reduction and the CEO change, which totaled $4.3 million, the
Company's efficiency ratio for 2006 was 58% compared with 55% in 2005.
For the three months ended December 31, 2006, the Company repurchased 384
thousand shares of its common stock at an average price of $14.49 per share. A
total of 2.9 million shares were purchased in 2006 at an average price of $13.92
per share. At year-end 2006, 5.6 million shares remain available for repurchase
under the current authorization.
Mr. Koelmel concluded, "As 2007 begins, we are even more focused on effectively
delivering on our customer-focused, relationship-based strategy and positioning
the Company for stronger performance in the future. Given that we expect
additional pressure on our net interest margin due to the continuing yield curve
environment, we have sharpened our focus on driving more revenue growth and
profitability from our current franchise and infrastructure. To mitigate the
effect of that additional compression, we will further concentrate on enhancing
our commercial loan and deposit mix and expanding our fee-based financial
services businesses. We will continue to limit expense growth to ensure our
resources are aligned with those activities that are most consistent with our
strategy and our best opportunities for long term risk adjusted returns.
Finally, we will continue to effectively manage our excess capital position,
including the evaluation of strategic banking and financial services
acquisitions, as well as share repurchases and dividend increases."
Profile - First Niagara Financial Group, Inc., through its wholly owned
subsidiary First Niagara Bank, has assets of $7.9 billion and deposits of $5.7
billion. First Niagara Bank is a full-service, community-oriented bank that
provides financial services to individuals, families and businesses through 119
branches and several financial services subsidiaries across New York State.
Conference Call - A conference call will be held at 11:00 a.m. Eastern Time on
Thursday January 25, 2007 to discuss fourth quarter results, as well as the
Company's strategy and future outlook. Those wishing to participate may dial
1-877-709-8150. A replay of the call will be available until February 25, 2007
by dialing 1-877-660-6853, account number 240, conference number 226863.
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, Chief Operating Officer and Acting
Chief Executive Officer
Michael W. Harrington Chief Financial Officer
Ann M. Segarra Corporate Controller
(716) 625-7509
ann.segarra@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
2006 2005
-------------------------------------------------------------- ------------
December 31, September 30, June 30, March 31, December 31,
------------ ------------- ----------- ----------- ------------
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SELECTED FINANCIAL DATA
(Amounts in thousands)
- ---------------------------------------------------------------------------------------------------------------------------------
Securities available for sale $ 1,060,422 1,204,048 1,317,035 1,489,402 1,604,888
Loans and leases:
Commercial:
Real estate $ 2,034,709 2,037,311 1,995,287 1,904,305 1,870,483
Business $ 561,323 546,976 529,627 504,935 473,571
----------- ----------- ----------- ----------- -----------
Total commercial loans $ 2,596,032 2,584,287 2,524,914 2,409,240 2,344,054
Residential real estate $ 2,252,473 2,254,294 2,245,795 2,209,518 2,182,907
Home equity $ 470,714 463,773 446,562 418,719 403,340
Other consumer $ 163,824 178,131 180,041 182,367 178,732
Specialized lending $ 155,032 156,281 177,375 164,552 159,759
Net deferred costs and discounts $ 27,350 26,217 24,617 21,927 19,847
----------- ----------- ----------- ----------- -----------
Total loans and leases $ 5,665,425 5,662,983 5,599,304 5,406,323 5,288,639
Allowance for credit losses $ 71,913 72,697 72,662 72,441 72,340
----------- ----------- ----------- ----------- -----------
Loans and leases, net $ 5,593,512 5,590,286 5,526,642 5,333,882 5,216,299
Goodwill and other intangibles $ 748,103 752,256 755,118 757,738 760,707
Total assets $ 7,945,526 8,011,500 8,106,776 8,079,957 8,064,832
Total interest-earning assets $ 6,837,367 6,934,014 7,043,036 7,016,550 6,987,526
Deposits:
Savings $ 1,505,488 1,531,048 1,585,934 1,604,326 1,619,187
Interest-bearing checking $ 1,273,579 1,219,743 1,189,275 1,167,361 1,182,995
Noninterest-bearing $ 647,108 628,321 628,478 584,820 592,076
Certificates $ 2,283,561 2,202,362 2,245,620 2,169,838 2,085,154
----------- ----------- ----------- ----------- -----------
Total deposits $ 5,709,736 5,581,474 5,649,307 5,526,345 5,479,412
Borrowings $ 747,554 919,398 990,463 1,082,410 1,096,427
Total interest-bearing liabilities $ 5,810,182 5,872,551 6,011,292 6,023,935 5,983,763
Net interest-earning assets $ 1,027,185 1,061,463 1,031,744 992,615 1,003,763
Stockholders' equity $ 1,387,197 1,383,878 1,360,926 1,367,385 1,374,423
Tangible equity (1) $ 639,094 631,622 605,808 609,647 613,716
Securities available for sale fair value
adjustment included in stockholders' equity $ (14,150) (15,671) (25,189) (22,562) (18,083)
Common shares outstanding (2) 106,753 106,701 106,528 107,721 108,656
Treasury shares 9,326 9,250 9,549 8,276 7,280
Total loans serviced for others $ 393,831 385,107 377,150 378,665 378,253
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CAPITAL
- ---------------------------------------------------------------------------------------------------------------------------------
Tier 1 risk based capital 10.91% 12.63% 11.40% 11.23% 11.01%
Total risk based capital 12.16% 13.86% 12.65% 12.48% 12.26%
Tier 1 (core) capital 7.73% 8.99% 7.92% 7.57% 7.56%
Tangible capital 7.73% 8.99% 7.92% 7.57% 7.56%
Equity to assets 17.46% 17.27% 16.79% 16.92% 17.04%
Tangible equity to tangible assets(1) 8.88% 8.70% 8.24% 8.33% 8.40%
Book value per share (2) $ 12.99 12.97 12.78 12.69 12.65
Tangible book value per share (1)(2) $ 5.99 5.92 5.69 5.66 5.65
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ASSET QUALITY DATA
(Amounts in thousands)
- ---------------------------------------------------------------------------------------------------------------------------------
Non-performing loans:
Commercial real estate 4,513 7,196 7,482 8,122 6,755
Commercial business 2,599 2,960 2,458 3,074 3,171
Residential real estate 4,490 3,450 3,904 4,905 5,911
Home equity 819 667 620 678 567
Other consumer 1,356 633 592 742 953
Specialized lending 1,751 2,225 2,473 3,089 4,573
----------- ----------- ----------- ----------- -----------
Total non-performing loans 15,528 17,131 17,529 20,610 21,930
Real estate owned 632 659 1,039 986 843
----------- ----------- ----------- ----------- -----------
Total non-performing assets 16,160 17,790 18,568 21,596 22,773
Net loan charge-offs $ 2,085 1,264 1,335 2,200 2,450
Net charge-offs to average loans (annualized) 0.15% 0.09% 0.10% 0.17% 0.19%
Provision for credit losses $ 1,300 1,300 1,556 2,300 2,500
Provision for credit losses as a
percentage of average loans (annualized) 0.09% 0.09% 0.11% 0.18% 0.19%
Total non-performing loans to total loans 0.27% 0.30% 0.31% 0.38% 0.41%
Total non-performing assets as a
percentage of total assets 0.20% 0.22% 0.23% 0.27% 0.28%
Allowance for credit losses to total loans 1.27% 1.28% 1.30% 1.34% 1.37%
Allowance for credit losses
to non-performing loans 463.1% 424.4% 414.5% 351.5% 329.9%
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Personnel FTE 1,922 1,891 1,939 1,958 1,984
Number of branches 119 119 122 120 118
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2006 2005
------------------------------------------------------------- -----------------------
Year Ended Fourth Third Second First Year Ended Fourth
December 31 Quarter Quarter Quarter Quarter December 31, Quarter
----------- -------- -------- -------- -------- ------------ --------
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SELECTED OPERATIONS DATA
(Amounts in thousands)
- ----------------------------------------------------------------------------------------------------------------------------------
Interest income $415,830 106,163 105,026 104,011 100,630 375,217 98,475
Interest expense $169,349 46,697 44,400 40,175 38,077 125,067 35,613
-------- -------- -------- -------- -------- -------- --------
Net interest income $246,481 59,466 60,626 63,836 62,553 250,150 62,862
Provision for credit losses $ 6,456 1,300 1,300 1,556 2,300 7,348 2,500
-------- -------- -------- -------- -------- -------- --------
Net interest income after
provision for credit losses $240,025 58,166 59,326 62,280 60,253 242,802 60,362
Noninterest income:
Banking services $ 38,661 9,766 9,861 9,983 9,051 37,327 9,775
Risk management services $ 44,133 10,753 10,855 11,705 10,820 29,838 10,183
Employee benefits administration $ 4,002 1,172 1,012 923 895 1,588 1,226
Wealth management services $ 8,334 1,938 1,990 2,133 2,273 6,753 1,572
Lending and leasing $ 7,238 1,914 1,608 1,969 1,747 7,204 1,935
Bank-owned life insurance $ 3,162 885 774 756 747 3,837 744
Other $ 5,688 1,475 3,502 333 378 4,116 776
-------- -------- -------- -------- -------- -------- --------
Total noninterest income $111,218 27,903 29,602 27,802 25,911 90,663 26,211
Noninterest expense:
Salaries and benefits $123,795 32,346 31,436 30,411 29,602 99,522 27,630
Occupancy and equipment $ 22,147 5,695 5,538 5,241 5,673 18,863 4,905
Technology and communications $ 20,303 5,083 5,117 5,109 4,994 19,555 5,573
Marketing and advertising $ 7,154 1,800 1,775 1,792 1,787 6,994 1,455
Professional services $ 3,921 1,060 929 1,069 863 7,784 1,720
Amortization of intangibles $ 11,802 2,838 2,890 2,994 3,080 12,083 3,467
Other $ 22,729 5,953 5,410 5,456 5,910 23,405 5,634
-------- -------- -------- -------- -------- -------- --------
Total noninterest expense $211,851 54,775 53,095 52,072 51,909 188,206 50,384
Income before income taxes $139,392 31,294 35,833 38,010 34,255 145,259 36,189
Income taxes $ 47,533 10,398 12,275 13,212 11,647 52,400 12,689
-------- -------- -------- -------- -------- -------- --------
Net income $ 91,859 20,896 23,558 24,798 22,608 92,859 23,500
======== ======== ======== ======== ======== ======== ========
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STOCK AND RELATED PER SHARE DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net income per share:
Basic $ 0.86 0.20 0.22 0.23 0.21 0.85 0.22
Diluted $ 0.85 0.19 0.22 0.23 0.21 0.84 0.21
Cash dividends $ 0.46 0.12 0.12 0.11 0.11 0.38 0.10
Dividend payout ratio 53.49% 60.00% 54.55% 47.83% 52.38% 44.71% 45.45%
Dividend yield (annualized) 3.10% 3.20% 3.26% 3.15% 3.04% 2.63% 2.74%
Market price (NASDAQ: FNFG):
High $ 15.43 15.43 15.20 14.74 15.16 15.16 15.15
Low $ 13.38 13.89 13.54 13.44 13.38 12.05 13.35
Close $ 14.86 14.86 14.62 14.02 14.66 14.47 14.47
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SELECTED RATIOS
- ----------------------------------------------------------------------------------------------------------------------------------
Net income (annualized):
Return on average assets 1.14% 1.04% 1.16% 1.23% 1.14% 1.18% 1.16%
Return on average equity 6.67% 5.96% 6.79% 7.27% 6.67% 6.76% 6.76%
Return on average tangible equity (1) 14.75% 12.93% 15.02% 16.28% 14.88% 14.41% 15.12%
Noninterest income as a percentage of
net revenue 31.09% 31.94% 32.81% 30.34% 29.29% 26.60% 29.43%
Efficiency ratio - Consolidated 59.2% 62.7% 58.8% 56.8% 58.7% 55.2% 56.6%
- Banking segment (3) 54.5% 59.5% 54.1% 50.6% 53.9% 51.0% 50.1%
Net loan charge-offs $ 6,884 2,085 1,264 1,335 2,200 7,114 2,450
Net charge-offs to average loans
(annualized) 0.12% 0.15% 0.09% 0.10% 0.17% 0.14% 0.19%
Provision for credit losses as a
percentage of average loans
(annualized) 0.12% 0.09% 0.09% 0.11% 0.18% 0.15% 0.19%
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2006 2005
------------------------------------------------------------------- -------------------------
Year-to-Date Fourth Third Second First Year Ended Fourth
December 31 Quarter Quarter Quarter Quarter December 31, Quarter
------------ ---------- ---------- ---------- ---------- ------------ ----------
- -------------------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
(Amounts in thousands)
- -------------------------------------------------------------------------------------------------------------------------------
Securities, at amortized cost $1,377,191 1,159,180 1,299,108 1,463,333 1,592,764 1,688,250 1,650,915
Loans (4)
Commercial:
Realoestateal Real Estate $1,965,832 2,037,440 2,016,806 1,936,790 1,869,891 1,748,839 1,837,831
Businessrcial Business $ 521,354 546,023 539,824 520,368 478,253 462,355 469,860
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total commercial loans $2,487,186 2,583,463 2,556,630 2,457,158 2,348,144 2,211,194 2,307,691
Residential $2,243,116 2,265,240 2,261,904 2,234,926 2,209,575 2,095,963 2,171,723
Home equity $ 445,356 474,011 460,241 435,366 410,952 360,519 397,192
Other consumer $ 182,518 174,468 182,348 186,903 186,486 186,368 185,191
Specialized lending $ 165,935 161,105 163,961 173,566 165,175 159,645 164,174
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total loans $5,524,111 5,658,287 5,625,084 5,487,919 5,320,332 5,013,689 5,225,971
Total interest-earning assets $6,973,137 6,901,629 6,984,200 7,031,114 6,976,304 6,778,663 6,942,574
Goodwill and other intangibles $ 754,919 750,516 753,496 756,491 759,284 729,816 761,802
Total assets $8,028,761 7,963,834 8,033,309 8,082,794 8,035,848 7,852,588 8,012,375
Interest-bearing liabilities:
Savings accounts $1,565,424 1,514,841 1,560,235 1,585,764 1,601,868 1,643,757 1,627,571
Checking $1,200,698 1,266,103 1,205,335 1,181,493 1,148,515 1,174,366 1,169,508
Certificates of deposit $2,202,282 2,255,120 2,236,959 2,207,201 2,107,851 1,831,418 2,043,388
Borrowed funds $ 980,429 823,799 928,766 1,045,184 1,127,879 1,176,711 1,102,370
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total interest-bearing
liabilities $5,948,833 5,859,863 5,931,295 6,019,642 5,986,113 5,826,252 5,942,837
Noninterest-bearing deposits $ 591,306 601,994 614,880 590,754 556,840 547,599 574,364
Total deposits $5,559,710 5,638,058 5,617,409 5,565,212 5,415,074 5,197,140 5,414,831
Total liabilities $6,651,267 6,572,369 6,657,635 6,715,447 6,660,514 6,478,174 6,634,128
Net interest-earning assets $1,024,304 1,041,766 1,052,905 1,011,472 990,191 952,411 999,737
Stockholders' equity $1,377,494 1,391,465 1,375,674 1,367,347 1,375,334 1,374,414 1,378,246
Tangible equity (1) $ 622,575 640,949 622,178 610,856 616,050 644,598 616,444
Common shares outstanding (2):
Basic 107,068 106,661 106,599 106,985 108,042 109,646 109,011
Diluted 108,027 107,576 107,548 107,897 109,026 110,658 110,032
- -------------------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE YIELDS/RATES
(Tax equivalent basis)
- -------------------------------------------------------------------------------------------------------------------------------
Securities, at amortized cost 4.10% 4.20% 4.16% 4.07% 3.99% 3.67% 3.86%
Loans
Commercial:
Realoestateal Real Estate 6.93% 7.04% 6.87% 6.89% 6.90% 6.68% 6.76%
Businessrcial Business 7.58% 7.99% 7.67% 7.48% 7.12% 6.46% 6.83%
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total commercial loans 7.06% 7.24% 7.04% 7.02% 6.95% 6.63% 6.78%
Residential 5.57% 5.59% 5.56% 5.57% 5.56% 5.54% 5.49%
Home equity 6.88% 7.01% 6.97% 6.84% 6.67% 6.13% 6.32%
Other consumer 7.50% 7.65% 7.58% 7.44% 7.33% 6.71% 6.77%
Specialized lending 9.59% 8.82% 8.70% 10.26% 10.51% 10.67% 10.66%
Total loans 6.53% 6.62% 6.50% 6.53% 6.47% 6.27% 6.33%
Total interest-earning assets 6.04% 6.21% 6.06% 6.00% 5.89% 5.60% 5.73%
Savings accounts 1.50% 1.64% 1.56% 1.46% 1.36% 1.09% 1.26%
Interest-bearing checking 1.89% 2.26% 1.96% 1.79% 1.51% 1.15% 1.37%
Certificates of deposit 3.90% 4.29% 4.06% 3.78% 3.43% 2.77% 3.16%
Borrowed funds 3.76% 4.21% 3.99% 3.18% 3.79% 3.62% 3.61%
Total interest-bearing
liabilities 2.84% 3.16% 2.97% 2.67% 2.58% 2.14% 2.37%
Tax equivalent net interest
rate spread 3.20% 3.05% 3.09% 3.33% 3.31% 3.46% 3.36%
Tax equivalent net interest
rate margin 3.61% 3.52% 3.54% 3.71% 3.68% 3.75% 3.70%
- ----------
(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.