- Fourth quarter operating earnings of $0.15 per diluted share
- Full Year 2015 operating earnings of $0.61 per diluted share
- Fourth quarter GAAP earnings of $0.12 per diluted share, including merger-related and restructuring expenses
- Full Year 2015 reported GAAP earnings of $0.54 per diluted share
- Average loans increased 6% annualized QOQ
- Average commercial loans (CRE and commercial business) up 6% annualized QOQ
- Indirect Auto and Home Equity loans drove 6% annualized increase in average consumer loans QOQ
- Average transactional deposit balances increased 14% annualized QOQ
- Average business noninterest-bearing deposit balances increased 12% annualized QOQ
- Average noninterest-bearing deposit balances increased 15% annualized QOQ
- Strong credit quality maintained
- Originated net charge-offs in 2015 averaged 0.32% of total originated loans, down 2 basis points YOY
- Originated net charge-offs in 2015 averaged 0.32% of total originated loans, down 2 basis points YOY
BUFFALO, N.Y., Feb. 05, 2016 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (NASDAQ:FNFG) today reported GAAP net income available to common shareholders of $43.3 million, or $0.12 per diluted share for the fourth quarter of 2015, compared to $52.9 million, or $0.15 per diluted share, for the quarter ended September 30, 2015. Excluding merger related and other non-operating items incurred during the fourth quarter of 2015, operating net income available to common shareholders was $55.3 million, or $0.15 per diluted share.
“We closed 2015 with strong core business fundamentals. Our fourth-quarter performance was highlighted by 6% annualized average commercial loan growth, 13% annualized growth in average checking account deposit balances, and stable credit metrics,” said Gary M. Crosby, President and Chief Executive Officer. “As we begin 2016, we remain focused on keeping our customers at the center of all we do and maintaining a strong competitive position. At the same time, the First Niagara team is also engaged with our counterparts at KeyCorp (Key) in integration planning to ensure that our customers move seamlessly over to Key following the legal closing of our merger. This compelling combination of financial institutions truly makes First Niagara and Key better together. Together we will better serve our customers, more efficiently and with a broader set of product features and functionalities. Together we will better serve and support the communities in which we operate and provide many team members with expanded career opportunities as part of a larger, more-diversified organization.”
“Our fourth quarter financial results reflect a 3% sequential increase in operating revenues driven by a 7% increase in noninterest income, stable net interest margin, and strong balance sheet growth,” said Gregory W. Norwood, Chief Financial Officer. “Over the past year, our team has been working diligently to improve the effectiveness of our internal controls and processes to address last year’s material weakness pertaining to the overstatement of the allowance for loan losses. Based on our assessment, this material weakness has been fully remediated.”
Full Year 2015 Results
For the full year ended December 31, 2015, the company reported GAAP net income available to common shareholders of $193 million, or $0.54 per diluted share, compared to a net loss of $745 million, or $(2.13) per share in 2014. GAAP net income for 2015 was impacted by $21 million in pre-tax restructuring charges as well as $14 million in merger-related costs incurred in connection with the company’s merger agreement with KeyCorp that was announced on October 30, 2015. In 2014, GAAP net income was impacted by a pre-tax $1.1 billion non-cash goodwill impairment charge, $22 million in non-operating restructuring expenses and $22 million in reserves to address the previously disclosed process issue related to certain customer deposit accounts. Excluding these charges, non-GAAP operating net income available to common shareholders in 2015 was $0.61 per diluted share, compared to $0.70 per diluted share in 2014. The year-over-year performance reflects lower net interest income driven by the continued impact of reinvestments and re-pricing of assets in the current low interest rate and competitive pricing environment as well as $0.10 per diluted share of reduced benefits from the taxable reorganization of a subsidiary and tax credit investments, partially offset by strong balance sheet growth and lower provision for loan losses.
Average loans increased 5% in 2015, driven by a 5% increase in commercial loans and 6% increase in consumer loan categories. Average transactional deposits, which include interest-bearing and noninterest-bearing checking account balances, increased 7% on a year-over-year basis, driven by an 8% increase in non-interest bearing deposit balances and a 6% increase in interest-checking deposit balances.
Fourth Quarter Results
In the fourth quarter of 2015, First Niagara reported GAAP net income available to common shareholders of $43.3 million, or $0.12 per diluted share, compared to $52.9 million, or $0.15 per diluted share in the third quarter of 2015. Reported results in the fourth quarter of 2015 reflect pre-tax restructuring charges of $3 million and $14 million in merger related costs. Excluding these items, operating net income available to common shareholders was $55.3 million, or $0.15 per diluted share, and consistent with the third quarter of 2015.
Compared to the third quarter of 2015, the change in operating net income available to common shareholders was primarily driven by:
- A 1% increase in net interest income driven by a 5% annualized increase in average earning assets and greater benefits from prepayment income and purchase accounting accretion.
- A 7% increase in noninterest income driven by higher capital markets income, lower tax credit amortization, gain from the sale of a low-income housing property, and higher equity and investment gains.
- A $2 million or 1% increase in operating noninterest expenses primarily driven by higher marketing spend, valuation write-down of a real estate property, and other corporate expenses, partially offset by lower professional services expense.
In the fourth quarter of 2014, First Niagara reported GAAP net income available to common shareholders of $61.5 million, or $0.17 per diluted share. Results in the fourth quarter of 2014 included $9 million of pre-tax restructuring charges and a $23 million benefit from the reversal of reserves related to a previously disclosed process issue related to certain customer deposit accounts. Excluding these nonrecurring items, fourth quarter 2014 net income available to common shareholders was $53.2 million, or $0.15 per diluted share.
Compared to the fourth quarter of 2014, the change in operating net income available to common shareholders in the fourth quarter of 2015 was primarily driven by:
- A 1% decrease in net interest income driven by continued pressure on loan yields due to low interest rates and competitive pressures throughout 2015.
- A $13 million decrease in provision for loan losses from elevated levels in the prior year that included a $5 million reserve to cover exposure to borrowers servicing the energy sector and a $5 million impairment on a commercial loan that was sold in March 2015.
- A 16% increase in noninterest income, driven primarily by lower tax credit amortization.
- Modestly lower noninterest expense as increases in salaries and benefits expense and technology & communications expenses were offset by declines in most other expense categories.
- Higher tax rate reflecting lower benefits from the taxable reorganization of a subsidiary and tax credit investments.
| Operating Results (Non-GAAP) | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | ||||||||||
| Net interest income | $ | 266.5 | $ | 263.5 | $ | 263.1 | $ | 262.9 | $ | 269.8 | |||||
| Provision for credit losses | 22.9 | 19.8 | 20.8 | 12.8 | 35.7 | ||||||||||
| Noninterest income | 89.4 | 83.4 | 86.6 | 82.2 | 77.2 | ||||||||||
| Noninterest expense | 247.4 | 245.4 | 247.9 | 243.5 | 248.2 | ||||||||||
| Operating net income | 62.8 | 60.5 | 61.0 | 62.2 | 60.7 | ||||||||||
| Preferred stock dividend | 7.5 | 7.5 | 7.5 | 7.5 | 7.5 | ||||||||||
| Operating net income available to common | $ | 55.3 | $ | 52.9 | $ | 53.5 | $ | 54.7 | $ | 53.2 | |||||
| Weighted average diluted shares outstanding | 353.8 | 353.2 | 352.8 | 352.6 | 352.2 | ||||||||||
| Operating earnings per diluted share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | |||||
| Reported Results (GAAP) | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | ||||||||||
| Operating net income before non-op. items | $ | 62.8 | $ | 60.5 | $ | 61.0 | $ | 62.2 | $ | 60.7 | |||||
| Non-operating items (a) | 12.0 | - | - | 10.9 | (8.4 | ) | |||||||||
| Net Income | 50.8 | 60.5 | 61.0 | 51.4 | 69.1 | ||||||||||
| Preferred stock dividend | 7.5 | 7.5 | 7.5 | 7.5 | 7.5 | ||||||||||
| Net income available to common | $ | 43.3 | $ | 52.9 | $ | 53.5 | $ | 43.8 | $ | 61.5 | |||||
| Weighted average diluted shares outstanding | 353.8 | 353.2 | 352.8 | 352.6 | 352.2 | ||||||||||
| Earnings per diluted share | $ | 0.12 | $ | 0.15 | $ | 0.15 | $ | 0.12 | $ | 0.17 | |||||
All amounts in millions except earnings per diluted share.
(a) Q4 2015: Non-operating charges primarily comprised of merger related costs including investment banker and other professional services fees, employee retention expenses, classification of compensation of certain personnel dedicated to merger integration efforts as well as third-party professional fees incurred in connection with the overstatement of allowance resulting from mid-level employee misconduct, net of taxes.
Q1 2015: Non-operating charges primarily related to staffing realignment, branch consolidations and third-party professional fees incurred in connection with the overstatement of allowance resulting from mid-level employee misconduct, net of taxes.
Q4 2014: Benefit from reversal of process issue reserve related to certain customer deposit accounts less severance and other restructuring charges related to Organizational Simplification initiative, net of taxes.
Loans
Average loans increased 6% annualized from the prior quarter to $23.8 billion, driven primarily by increases in the company’s commercial real estate (CRE), indirect auto and home equity loan portfolios. On an end-of-period basis, total loans increased 6% annualized from the prior quarter driven by a 14% annualized increase in CRE loans.
Average commercial loans, which include commercial business (C&I) and commercial real estate (CRE) loans, increased 6% annualized from prior quarter to $14.4 billion, primarily driven by growth in the company’s Tri-State and New England footprint.
- Average CRE loans increased 10% annualized from the prior quarter to $8.5 billion driven by commercial mortgage and construction lending offset by borrower prepayments.
- Average C&I loans averaged $6.0 billion and were flat to the prior quarter reflecting higher pay-down activity.
Average consumer loans increased 6% annualized from prior quarter to $9.3 billion.
- Average indirect auto loan balances increased 13% annualized or by $76 million to $2.4 billion, as strong new origination activity was partially offset by increased pay-downs. Indirect auto originations during the quarter totaled $295 million. New originations in the fourth quarter yielded 3.30%, net of dealer reserve, compared to 3.42% on originations in the prior quarter.
- Average residential real estate loans increased 1% annualized.
- Home equity balances increased for the eleventh consecutive quarter to $3.1 billion, or 7% annualized from the prior quarter reflecting higher customer draws as well as the benefits of promotional and cross-sell campaigns.
| Average Loans | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | ||||||||||
| Commercial real estate | $ | 8,476 | $ | 8,277 | $ | 8,257 | $ | 8,263 | $ | 8,087 | |||||
| Commercial business | 5,971 | 5,972 | 5,830 | 5,797 | 5,791 | ||||||||||
| Total commercial | 14,447 | 14,249 | 14,087 | 14,060 | 13,878 | ||||||||||
| Residential real estate | 3,346 | 3,338 | 3,326 | 3,338 | 3,364 | ||||||||||
| Home equity | 3,052 | 3,001 | 2,963 | 2,939 | 2,912 | ||||||||||
| Indirect auto | 2,369 | 2,293 | 2,238 | 2,187 | 2,132 | ||||||||||
| Credit cards | 305 | 306 | 304 | 311 | 314 | ||||||||||
| Other consumer | 250 | 255 | 260 | 275 | 283 | ||||||||||
| Total consumer | 9,322 | 9,193 | 9,091 | 9,050 | 9,005 | ||||||||||
| Total loans | $ | 23,769 | $ | 23,442 | $ | 23,178 | $ | 23,110 | $ | 22,883 | |||||
All amounts in millions.
Credit Quality
At December 31, 2015, the allowance for loan losses was $242 million, compared to $239 million at September 30, 2015. In the fourth quarter, provision for loan losses totaled $22.4 million, compared to $19.3 million in the prior quarter. Nonperforming assets comprised 0.58% of total assets, unchanged from September 30, 2015.
Information for both the originated and acquired portfolios follows.
| Q4 2015 | Q3 2015 | ||||||||||||||||||
| $ in millions | Originated | Acquired | Total | Originated | Acquired | Total | |||||||||||||
| Provision for loan losses* | $ | 22.4 | $ | 0.0 | $ | 22.4 | $ | 20.7 | $ | (1.4 | ) | $ | 19.3 | ||||||
| Net charge-offs | 19.1 | 0.0 | 19.1 | 15.5 | 0.6 | 16.2 | |||||||||||||
| NCOs/ Avg Loans | 0.37 | % | 0.00 | % | 0.32 | % | 0.31 | % | 0.08 | % | 0.28 | % | |||||||
| Total loans** | $ | 21,101 | $ | 2,937 | $ | 24,038 | $ | 20,592 | $ | 3,075 | $ | 23,666 | |||||||
| Allowance | $ | 236.7 | $ | 5.3 | $ | 242.0 | $ | 233.4 | $ | 5.3 | $ | 238.7 | |||||||
| Allowance/Loans | 1.12 | % | 0.18 | % | 1.01 | % | 1.13 | % | 0.17 | % | 1.01 | % | |||||||
| Nonperforming Loans | $ | 188.2 | $ | 25.3 | $ | 213.6 | $ | 185.6 | $ | 25.4 | $ | 210.9 | |||||||
| NPLs/ Loans | 0.89 | % | 0.86 | % | 0.89 | % | 0.90 | % | 0.82 | % | 0.89 | % | |||||||
| Criticized | $ | 761.6 | $ | 183.2 | $ | 944.8 | $ | 684.9 | $ | 173.4 | $ | 858.2 | |||||||
| Criticized as % of Loans | 3.61 | % | 6.24 | % | 3.93 | % | 3.33 | % | 5.64 | % | 3.62 | % | |||||||
| Classified | $ | 450.7 | $ | 152.2 | $ | 602.9 | $ | 449.5 | $ | 142.2 | $ | 591.8 | |||||||
| Classified as % of Loans | 2.14 | % | 5.18 | % | 2.51 | % | 2.18 | % | 4.63 | % | 2.50 | % | |||||||
(*) Excludes provision for unfunded commitments $0.5 million each in 4Q15 and 3Q15
(**) Acquired loans net of associated credit discount; see accompanying tables for further information
Originated loans
The provision for loan losses on originated loans totaled $22 million, compared to $21 million in the third quarter of 2015. Originated net charge-offs in the fourth quarter equaled $19 million or 37 basis points of average originated loans, up from 31 basis points in the third quarter of 2015. The increase in net charge-offs were primarily driven by confirmation of losses on two commercial credits, including one serving the energy sector, that had been previously provided for as of September 30, 2015. In 2015, originated net charge-offs equaled 32 basis points of average loans, down 2 basis points from 34 basis points in 2014.
At December 31, 2015, nonperforming originated loans totaled $188 million, or 0.89% of originated loans, compared to 0.90% at September 30, 2015. At December 31, 2015, the allowance for loan losses on originated loans totaled $237 million or 1.12% of such loans, compared to $233 million or 1.13% of such loans at September 30, 2015. The modest decline in allowance coverage ratio reflects the impact of charge-offs during the fourth quarter that were previously provided for as of September 30, 2015.
Acquired loans
In the fourth quarter of 2015, provision for losses on acquired loans totaled zero, compared to a $1 million recovery in the third quarter of 2015. Net charge-offs on the acquired portfolio were zero, compared to $0.6 million of net charge-offs in the prior quarter. At December 31, 2015, the allowance for loan losses on acquired loans totaled $5 million, unchanged from September 30, 2015. Acquired nonperforming loans totaled $25 million, unchanged from the prior quarter. At December 31, 2015, remaining credit marks available to absorb losses on a pool-by-pool basis totaled $62 million.
Deposits
Average deposits increased 3% annualized from the prior quarter to $28.8 billion.
- Non-interest checking deposit balances averaged $5.9 billion, up 15% annualized from the prior quarter and 7% from the year-ago period driven by higher business and municipal deposit balances.
- Average transactional deposit balances, which include interest-bearing and noninterest-bearing checking account balances, increased 14% annualized and currently represents 39% of the company’s deposit balances.
- The 13% sequential increase in interest-checking deposit balances reflects seasonally strong municipal deposit balances.
- Money market deposit balances increased 12% annualized, reflecting the benefits of promotional marketing and pricing campaigns and seasonally strong municipal deposit balances.
- Average savings balances decreased 7% annualized from the prior quarter driven by lower customer balances and seasonality.
- Time deposits decreased 45% annualized to $3.5 billion, driven by a $414 million decrease in brokered certificate of deposit balances.
| Average Deposits | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | ||||||||||
| Noninterest-bearing deposits | $ | 5,868 | $ | 5,661 | $ | 5,427 | $ | 5,430 | $ | 5,485 | |||||
| Savings accounts | 3,364 | 3,427 | 3,494 | 3,432 | 3,447 | ||||||||||
| Interest-bearing checking | 5,333 | 5,165 | 5,131 | 5,001 | 5,049 | ||||||||||
| Money market deposits | 10,719 | 10,403 | 10,251 | 10,132 | 10,037 | ||||||||||
| Certificates of deposit | 3,515 | 3,962 | 3,917 | 3,778 | 3,888 | ||||||||||
| Total deposits | $ | 28,799 | $ | 28,618 | $ | 28,220 | $ | 27,773 | $ | 27,906 | |||||
All amounts in millions.
Net Interest Income
Fourth quarter 2015 GAAP net interest income of $267 million increased $3 million, or 1%, from the prior quarter, driven in part by earning asset growth and greater benefits from prepayment income and purchase accounting accretion. Reported net interest margin of 2.98% was unchanged sequentially.
- Yields on loans increased 1 basis point to 3.65% primarily reflecting higher prepayment income and purchase accounting accretion and offset by continued pressure on loan yields due to low interest rates and competitive pressures.
- Yields on investment securities decreased 2 basis points to 2.90% reflecting lower collateralized loan obligations (CLO) pay-off discount accretion income.
- The average cost of interest-bearing deposits increased 1 basis point from the prior quarter to 0.30%.
| Net Interest Income (Tax Equivalent) | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | ||||||||||
| Quarter as Reported | $ | 271.7 | $ | 268.5 | $ | 268.0 | $ | 267.8 | $ | 274.8 | |||||
| Less: CLO pay-off discount recognition | - | (1.2 | ) | (2.3 | ) | - | (0.7 | ) | |||||||
| Less: Accelerated CMBS prepayment | - | - | - | - | (0.5 | ) | |||||||||
| Add: CMO Retroactive premium amortization | - | - | 1.1 | - | 1.0 | ||||||||||
| Add: CRE prepayment penalties | (0.5 | ) | - | - | - | (0.2 | ) | ||||||||
| Less: Early loan payoffs | - | - | (1.7 | ) | - | - | |||||||||
| Less: Other miscellaneous items | (0.5 | ) | - | - | - | - | |||||||||
| Sub-Total | (1.0 | ) | (1.2 | ) | (2.9 | ) | - | (1.4 | ) | ||||||
| Normalized Net Interest Income | $ | 270.7 | $ | 267.3 | $ | 265.1 | $ | 267.8 | $ | 273.4 | |||||
All amounts in millions.
| Net Interest Margin (Tax Equivalent) | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | ||||||||||
| Quarter as Reported | 2.98 | % | 2.98 | % | 3.02 | % | 3.07 | % | 3.11 | % | |||||
| Less: CLO pay-off discount recognition | - | (0.01 | )% | (0.03 | )% | - | (0.01 | )% | |||||||
| Less: Accelerated CMBS prepayment | - | - | - | - | (0.01 | )% | |||||||||
| Add: CMO Retroactive premium amortization | - | - | 0.01 | % | - | 0.01 | % | ||||||||
| Add: CRE prepayment penalties | (0.01 | )% | - | - | - | (0.01 | )% | ||||||||
| Less: Early loan payoffs | - | - | (0.02 | %) | - | - | |||||||||
| Less: Other miscellaneous items | (0.01 | )% | - | - | - | - | |||||||||
| Sub-Total | (0.02 | )% | (0.01 | )% | (0.03 | )% | - | (0.02 | %) | ||||||
| Normalized Net Interest Margin | 2.96 | % | 2.97 | % | 2.99 | % | 3.07 | % | 3.09 | % | |||||
Noninterest Income
Fourth quarter 2015 noninterest income of $89 million increased 7% or $6 million compared to the prior quarter.
- Deposit service charges and wealth management revenues were largely unchanged from prior quarter.
- Insurance commissions decreased $3 million driven primarily by seasonally lower renewal volumes during the fourth quarter.
- Merchant and card fees decreased 1% driven by lower debit card interchange revenues.
- Capital markets income, which includes income from derivatives and syndications, increased $4 million, primarily driven by strong derivative activity in the fourth quarter as well as the impact of a favorable credit valuation adjustment on interest rate swap assets.
- Mortgage banking revenues were modestly lower from the prior quarter reflecting lower locked volumes and gain-on-sale margins offset by a $1 million repurchase reserve reversal.
- Other noninterest income increased $5 million from the prior quarter due to lower tax credit amortization, gain from the sale of a low-income housing property, and higher equity and investment gains.
| Noninterest Income | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | ||||||||||
| Deposit service charges | $ | 22.9 | $ | 22.9 | $ | 22.2 | $ | 20.4 | $ | 22.6 | |||||
| Insurance commissions | 14.9 | 18.3 | 17.1 | 15.7 | 14.8 | ||||||||||
| Merchant and card fees | 13.3 | 13.4 | 13.3 | 11.9 | 13.0 | ||||||||||
| Wealth management services | 14.6 | 14.6 | 15.7 | 14.7 | 14.4 | ||||||||||
| Mortgage banking | 4.9 | 5.1 | 5.8 | 4.9 | 4.6 | ||||||||||
| Capital markets income | 6.6 | 2.6 | 5.3 | 4.2 | 8.3 | ||||||||||
| Lending and leasing | 4.2 | 4.5 | 4.0 | 4.4 | 4.6 | ||||||||||
| Bank owned life insurance | 3.3 | 2.8 | 3.2 | 3.6 | 3.2 | ||||||||||
| Other income | 4.7 | (0.7 | ) | 0.1 | 2.6 | (8.3 | ) | ||||||||
| Total noninterest income | $ | 89.4 | $ | 83.4 | $ | 86.6 | $ | 82.2 | $ | 77.2 | |||||
All amounts in millions.
Noninterest Expense
Operating noninterest expenses totaled $247 million in the fourth quarter of 2015, or 1% higher than third quarter 2015 levels. The quarter-over-quarter increase was primarily driven by higher marketing spend and higher levels of other noninterest expense.
- Salaries and benefits expense of $113 million decreased modestly compared to the prior quarter as higher medical costs were offset by lower incentive compensation expenses.
- Occupancy and equipment expense increased 2%, due primarily to higher rent and building maintenance expenses.
- Marketing and advertising spend increased $1 million from third quarter levels due to timing of promotional campaigns.
- Professional services fees decreased $3 million from third quarter levels due primarily to lower spend on vendor and other consulting fees.
- Other expenses increased $3 million sequentially driven in part by higher other real estate (ORE) valuation write-downs, litigation expenses, and new credit and debit card issuance costs.
| Operating Noninterest Expense (Non-GAAP)* | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | ||||||||||
| Salaries and employee benefits | $ | 113.1 | $ | 113.8 | $ | 113.6 | $ | 112.0 | $ | 111.0 | |||||
| Occupancy and equipment | 26.0 | 25.5 | 26.0 | 27.3 | 28.4 | ||||||||||
| Technology and communications | 38.2 | 38.3 | 36.5 | 35.1 | 33.9 | ||||||||||
| Marketing and advertising | 9.7 | 8.4 | 10.3 | 9.9 | 11.6 | ||||||||||
| Professional services | 15.4 | 18.1 | 16.3 | 13.1 | 16.6 | ||||||||||
| Amortization of intangibles | 4.0 | 4.0 | 5.1 | 6.2 | 6.4 | ||||||||||
| Federal deposit insurance premiums | 10.4 | 10.0 | 11.8 | 11.2 | 11.9 | ||||||||||
| Other expense | 30.7 | 27.3 | 28.4 | 28.9 | 28.4 | ||||||||||
| Total operating noninterest expense | $ | 247.4 | $ | 245.4 | $ | 247.9 | $ | 243.5 | $ | 248.2 | |||||
*All amounts in millions. See appendix for reconciliation of GAAP to Non-GAAP amounts
In the fourth quarter of 2015, the operating efficiency ratio improved to 69.5%, compared to 70.7% in the prior quarter.
Capital
Beginning in the first quarter of 2015, all regulatory capital ratios and amounts were calculated under the Basel III standardized transitional approach. At December 31, 2015, the company’s consolidated Total Risk Based capital and Common Equity Tier 1 capital ratios were 12.0% and 8.6%, respectively, unchanged from September 30, 2015. The company 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 with approximately 390 branches, $40 billion in assets, $29 billion in deposits, and approximately 5,400 employees providing financial services to individuals, families and businesses across New York, Pennsylvania, Connecticut and Massachusetts. For more information, visit www.firstniagara.com.
Safe Harbor Statement
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) impact of the pending merger agreement on customers and employees; and (7) ability to consummate the merger transaction with KeyCorp on a timely basis or at all.
| First Niagara Financial Group, Inc. | ||||||||||||||||||||||||||||||||
| Income Statement Highlights - Reported Basis | ||||||||||||||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
| 2015 | 2014 | For year ending | ||||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Third | December 31, | December 31, | |||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2015 | 2014 | |||||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||||
| Loans and leases | $ | 214,945 | $ | 211,407 | $ | 211,899 | $ | 210,371 | $ | 214,609 | $ | 212,452 | $ | 848,622 | $ | 846,923 | ||||||||||||||||
| Investment securities and other | 88,825 | 87,914 | 86,356 | 86,280 | 86,919 | 91,668 | 349,375 | 360,574 | ||||||||||||||||||||||||
| Total interest income | 303,770 | 299,321 | 298,255 | 296,651 | 301,528 | 304,120 | 1,197,997 | 1,207,497 | ||||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||
| Deposits | 17,147 | 17,040 | 16,568 | 15,344 | 14,295 | 13,590 | 66,099 | 53,304 | ||||||||||||||||||||||||
| Borrowings | 20,074 | 18,790 | 18,577 | 18,363 | 17,450 | 17,251 | 75,804 | 68,572 | ||||||||||||||||||||||||
| Total interest expense | 37,221 | 35,830 | 35,145 | 33,707 | 31,745 | 30,841 | 141,903 | 121,876 | ||||||||||||||||||||||||
| Net interest income | 266,549 | 263,491 | 263,110 | 262,944 | 269,783 | 273,279 | 1,056,094 | 1,085,621 | ||||||||||||||||||||||||
| Provision for credit losses | 22,900 | 19,768 | 20,756 | 12,765 | 35,706 | 16,700 | 76,189 | 95,906 | ||||||||||||||||||||||||
| Net interest income after provision | 243,649 | 243,723 | 242,354 | 250,179 | 234,077 | 256,579 | 979,905 | 989,715 | ||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||||||
| Deposit service charges | 22,919 | 22,944 | 22,208 | 20,389 | 22,611 | 20,373 | 88,460 | 90,073 | ||||||||||||||||||||||||
| Insurance commissions | 14,920 | 18,252 | 17,060 | 15,714 | 14,764 | 18,352 | 65,946 | 66,150 | ||||||||||||||||||||||||
| Merchant and card fees | 13,318 | 13,423 | 13,317 | 11,907 | 13,043 | 12,991 | 51,965 | 50,372 | ||||||||||||||||||||||||
| Wealth management services | 14,567 | 14,572 | 15,718 | 14,650 | 14,404 | 15,367 | 59,507 | 61,307 | ||||||||||||||||||||||||
| Mortgage banking | 4,894 | 5,070 | 5,783 | 4,887 | 4,600 | 4,358 | 20,634 | 17,595 | ||||||||||||||||||||||||
| Capital markets income | 6,580 | 2,608 | 5,284 | 4,152 | 8,312 | 3,509 | 18,624 | 18,361 | ||||||||||||||||||||||||
| Lending and leasing | 4,248 | 4,487 | 3,998 | 4,353 | 4,567 | 3,914 | 17,086 | 17,893 | ||||||||||||||||||||||||
| Bank owned life insurance | 3,259 | 2,819 | 3,160 | 3,592 | 3,187 | 3,080 | 12,830 | 14,817 | ||||||||||||||||||||||||
| Other income | 4,696 | (732 | ) | 79 | 2,600 | (8,311 | ) | (6,552 | ) | 6,643 | (26,418 | ) | ||||||||||||||||||||
| Total noninterest income | 89,401 | 83,443 | 86,607 | 82,244 | 77,177 | 75,392 | 341,695 | 310,150 | ||||||||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 113,063 | 113,794 | 113,561 | 111,973 | 110,985 | 116,245 | 452,391 | 462,898 | ||||||||||||||||||||||||
| Occupancy and equipment | 25,961 | 25,538 | 26,021 | 27,332 | 28,379 | 27,450 | 104,852 | 112,258 | ||||||||||||||||||||||||
| Technology and communications | 38,232 | 38,301 | 36,486 | 35,061 | 33,940 | 31,465 | 148,080 | 126,890 | ||||||||||||||||||||||||
| Marketing and advertising | 9,719 | 8,445 | 10,297 | 9,863 | 11,584 | 7,746 | 38,324 | 35,133 | ||||||||||||||||||||||||
| Professional services | 15,361 | 18,052 | 16,321 | 13,070 | 16,644 | 13,988 | 62,804 | 55,584 | ||||||||||||||||||||||||
| Amortization of intangibles | 3,972 | 4,001 | 5,092 | 6,205 | 6,432 | 6,521 | 19,270 | 27,252 | ||||||||||||||||||||||||
| Federal deposit insurance premiums | 10,383 | 10,026 | 11,750 | 11,158 | 11,911 | 9,579 | 43,317 | 40,101 | ||||||||||||||||||||||||
| Restructuring charges | 3,378 | - | - | 17,517 | 9,066 | 2,364 | 20,895 | 21,786 | ||||||||||||||||||||||||
| Goodwill impairment | - | - | - | - | - | 1,100,000 | - | 1,100,000 | ||||||||||||||||||||||||
| Deposit account remediation | - | - | - | - | (23,000 | ) | 45,000 | - | 22,000 | |||||||||||||||||||||||
| Merger and acquisition integration expenses | 14,198 | - | - | - | - | - | 14,198 | - | ||||||||||||||||||||||||
| Other expense | 30,728 | 27,276 | 28,371 | 28,859 | 28,371 | 36,467 | 115,234 | 120,086 | ||||||||||||||||||||||||
| Total noninterest expense | 264,995 | 245,433 | 247,899 | 261,038 | 234,312 | 1,396,825 | 1,019,365 | 2,123,988 | ||||||||||||||||||||||||
| Income (loss) before income tax | 68,055 | 81,733 | 81,062 | 71,385 | 76,942 | (1,064,854 | ) | 302,235 | (824,123 | ) | ||||||||||||||||||||||
| Income tax expense (benefit) | 17,255 | 21,251 | 20,052 | 20,000 | 7,875 | (144,808 | ) | 78,558 | (109,229 | ) | ||||||||||||||||||||||
| Net income (loss) | 50,800 | 60,482 | 61,010 | 51,385 | 69,067 | (920,046 | ) | 223,677 | (714,894 | ) | ||||||||||||||||||||||
| Preferred stock dividend | 7,547 | 7,547 | 7,547 | 7,547 | 7,547 | 7,547 | 30,188 | 30,188 | ||||||||||||||||||||||||
| Net income (loss) available to common stockholders | $ | 43,253 | $ | 52,935 | $ | 53,463 | $ | 43,838 | $ | 61,520 | $ | (927,593 | ) | $ | 193,489 | $ | (745,082 | ) | ||||||||||||||
| Financial Ratios: | ||||||||||||||||||||||||||||||||
| Earnings (loss) per basic share | $ | 0.12 | $ | 0.15 | $ | 0.15 | $ | 0.12 | $ | 0.17 | $ | (2.65 | ) | $ | 0.55 | (2.13 | ) | |||||||||||||||
| Earnings (loss) per diluted share | $ | 0.12 | $ | 0.15 | $ | 0.15 | $ | 0.12 | $ | 0.17 | $ | (2.65 | ) | $ | 0.54 | (2.13 | ) | |||||||||||||||
| Weighted average shares outstanding - basic(1) | 351,306 | 351,293 | 351,126 | 350,741 | 350,444 | 350,381 | 351,119 | 350,237 | ||||||||||||||||||||||||
| Weighted average shares outstanding - diluted(1) | 353,797 | 353,248 | 352,791 | 352,621 | 352,152 | 350,381 | 353,040 | 350,237 | ||||||||||||||||||||||||
| Net revenue(2) | $ | 355,950 | $ | 346,934 | $ | 349,717 | $ | 345,188 | $ | 346,960 | $ | 348,671 | $ | 1,397,789 | $ | 1,395,771 | ||||||||||||||||
| Noninterest income as a percentage of net revenue(2) | 25.12 | % | 24.05 | % | 24.76 | % | 23.83 | % | 22.24 | % | 21.62 | % | 24.45 | % | 22.22 | % | ||||||||||||||||
| Pre-tax, pre-provision income (loss)(3) | $ | 90,955 | $ | 101,501 | $ | 101,818 | $ | 84,150 | $ | 112,648 | $ | (1,048,154 | ) | $ | 378,424 | $ | (728,217 | ) | ||||||||||||||
| Pre-tax, pre-provision income per diluted share(3) | $ | 0.26 | $ | 0.29 | $ | 0.29 | $ | 0.24 | $ | 0.32 | $ | (2.99 | ) | $ | 1.07 | $ | (2.08 | ) | ||||||||||||||
| Pre-tax, pre-provision return on average assets(3) | 0.91 | % | 1.03 | % | 1.05 | % | 0.88 | % | 1.17 | % | (10.8 | )% | 0.97 | % | (1.91 | )% | ||||||||||||||||
| Net interest margin(4) | 2.98 | % | 2.98 | % | 3.02 | % | 3.07 | % | 3.11 | % | 3.21 | % | 3.01 | % | 3.23 | % | ||||||||||||||||
| Interest yield on average loans(4) | 3.65 | % | 3.64 | % | 3.73 | % | 3.75 | % | 3.78 | % | 3.80 | % | 3.69 | % | 3.86 | % | ||||||||||||||||
| Rate paid on interest-bearing liabilities | 0.51 | % | 0.50 | % | 0.49 | % | 0.48 | % | 0.45 | % | 0.44 | % | 0.49 | % | 0.44 | % | ||||||||||||||||
| Efficiency ratio | 74.45 | % | 70.74 | % | 70.89 | % | 75.62 | % | 67.53 | % | 400.61 | % | 72.93 | % | 152.17 | % | ||||||||||||||||
| Expenses as a percentage of average loans and deposits | 2.0 | % | 1.9 | % | 1.9 | % | 2.1 | % | 1.8 | % | 11.2 | % | 2.0 | % | 4.3 | % | ||||||||||||||||
| Effective tax rate (benefit) | 25.40 | % | 26.00 | % | 24.70 | % | 28.00 | % | 10.20 | % | (13.60 | )% | 26.00 | % | (13.30 | )% | ||||||||||||||||
| Return on average assets(5) | 0.51 | % | 0.61 | % | 0.63 | % | 0.54 | % | 0.72 | % | (9.46 | )% | 0.57 | % | (1.87 | )% | ||||||||||||||||
| Return on average equity(5) | 4.85 | % | 5.78 | % | 5.90 | % | 5.05 | % | 6.62 | % | (71.57 | )% | 5.40 | % | (14.79 | )% | ||||||||||||||||
| Return on average tangible equity(3)(5) | 7.32 | % | 8.73 | % | 8.94 | % | 7.68 | % | 10.07 | % | (141.16 | )% | 8.17 | % | (27.66 | )% | ||||||||||||||||
| Return on average common equity | 4.50 | % | 5.51 | % | 5.63 | % | 4.69 | % | 6.42 | % | (77.27 | )% | 5.08 | % | (16.57 | )% | ||||||||||||||||
| Return on average tangible common equity(3) | 7.10 | % | 8.72 | % | 8.94 | % | 7.48 | % | 10.24 | % | (163.71 | )% | 8.06 | % | (33.16 | )% | ||||||||||||||||
| (1 | ) | Share count excludes unallocated ESOP shares prior to January 1, 2015 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 the 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. | ||||||||||||||||||||||||||||||
| First Niagara Financial Group, Inc. | ||||||||||||||||||||||||||
| Period End Balance Sheet | ||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||
| Cash and cash equivalents | $ | 672,243 | $ | 420,289 | $ | 527,323 | $ | 387,676 | $ | 420,033 | $ | 451,313 | ||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||
| Available for sale | 5,471,291 | 5,725,608 | 5,750,860 | 5,911,419 | 5,915,338 | 6,198,140 | ||||||||||||||||||||
| Held to maturity | 6,387,689 | 6,280,049 | 6,169,838 | 6,214,561 | 5,941,621 | 5,351,977 | ||||||||||||||||||||
| FHLB and FRB common stock | 410,452 | 373,066 | 379,135 | 375,090 | 411,857 | 389,870 | ||||||||||||||||||||
| Total investment securities | 12,269,432 | 12,378,723 | 12,299,833 | 12,501,070 | 12,268,816 | 11,939,987 | ||||||||||||||||||||
| Loans held for sale | 46,096 | 51,056 | 59,816 | 48,755 | 39,825 | 31,245 | ||||||||||||||||||||
| Loans and leases: | ||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||
| Real estate | 8,652,255 | 8,365,808 | 8,312,332 | 8,287,108 | 8,204,027 | 8,013,622 | ||||||||||||||||||||
| Business | 6,013,217 | 6,031,358 | 5,923,524 | 5,790,980 | 5,775,413 | 5,836,235 | ||||||||||||||||||||
| Total commercial loans | 14,665,472 | 14,397,166 | 14,235,856 | 14,078,088 | 13,979,440 | 13,849,857 | ||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||
| Residential real estate | 3,354,639 | 3,345,701 | 3,329,799 | 3,330,216 | 3,353,081 | 3,360,805 | ||||||||||||||||||||
| Home equity | 3,068,962 | 3,032,618 | 2,984,872 | 2,943,844 | 2,936,123 | 2,886,655 | ||||||||||||||||||||
| Indirect auto | 2,393,105 | 2,330,826 | 2,256,004 | 2,200,913 | 2,166,320 | 2,073,843 | ||||||||||||||||||||
| Credit cards | 310,813 | 305,779 | 304,682 | 301,228 | 324,113 | 312,549 | ||||||||||||||||||||
| Other consumer | 244,935 | 254,109 | 257,204 | 263,985 | 278,305 | 286,140 | ||||||||||||||||||||
| Total consumer loans | 9,372,454 | 9,269,033 | 9,132,561 | 9,040,186 | 9,057,942 | 8,919,992 | ||||||||||||||||||||
| Total loans and leases | 24,037,926 | 23,666,199 | 23,368,417 | 23,118,274 | 23,037,382 | 22,769,849 | ||||||||||||||||||||
| Allowance for loan losses | 242,036 | 238,700 | 235,600 | 231,138 | 234,251 | 222,753 | ||||||||||||||||||||
| Loans and leases, net | 23,795,890 | 23,427,499 | 23,132,817 | 22,887,136 | 22,803,131 | 22,547,096 | ||||||||||||||||||||
| Bank owned life insurance | 436,709 | 434,263 | 431,335 | 428,454 | 426,192 | 423,376 | ||||||||||||||||||||
| Goodwill and other intangibles | 1,396,227 | 1,400,199 | 1,404,201 | 1,410,800 | 1,417,005 | 1,423,437 | ||||||||||||||||||||
| Other assets | 1,301,789 | 1,301,152 | 1,208,218 | 1,243,588 | 1,176,036 | 1,155,588 | ||||||||||||||||||||
| Total assets | $ | 39,918,386 | $ | 39,413,181 | $ | 39,063,543 | $ | 38,907,479 | $ | 38,551,038 | $ | 37,972,042 | ||||||||||||||
| Deposits: | ||||||||||||||||||||||||||
| Savings accounts | $ | 3,389,728 | $ | 3,359,320 | $ | 3,483,777 | $ | 3,488,441 | $ | 3,451,616 | $ | 3,458,661 | ||||||||||||||
| Interest-bearing checking | 5,478,947 | 5,285,987 | 5,088,856 | 5,158,264 | 5,084,456 | 5,055,458 | ||||||||||||||||||||
| Money market deposits | 10,653,792 | 10,483,721 | 10,303,873 | 10,368,358 | 9,962,220 | 9,894,346 | ||||||||||||||||||||
| Noninterest-bearing deposits | 5,834,534 | 5,813,571 | 5,549,944 | 5,500,484 | 5,407,382 | 5,308,736 | ||||||||||||||||||||
| Certificates of deposit | 3,343,878 | 3,873,521 | 4,020,367 | 3,734,226 | 3,875,563 | 3,952,879 | ||||||||||||||||||||
| Total deposits | 28,700,879 | 28,816,120 | 28,446,817 | 28,249,773 | 27,781,237 | 27,670,080 | ||||||||||||||||||||
| Short-term borrowings | 4,348,586 | 4,086,415 | 4,275,886 | 4,739,264 | 5,471,974 | 4,928,762 | ||||||||||||||||||||
| Long-term borrowings | 2,308,101 | 1,783,402 | 1,683,476 | 1,233,550 | 733,620 | 733,684 | ||||||||||||||||||||
| Other liabilities | 434,492 | 587,867 | 536,239 | 559,646 | 471,449 | 543,813 | ||||||||||||||||||||
| Total liabilities | 35,792,058 | 35,273,804 | 34,942,418 | 34,782,233 | 34,458,280 | 33,876,339 | ||||||||||||||||||||
| Preferred stockholders' equity | 338,002 | 338,002 | 338,002 | 338,002 | 338,002 | 338,002 | ||||||||||||||||||||
| Common stockholders' equity | 3,788,326 | 3,801,375 | 3,783,123 | 3,787,244 | 3,754,756 | 3,757,701 | ||||||||||||||||||||
| Total stockholders' equity | 4,126,328 | 4,139,377 | 4,121,125 | 4,125,246 | 4,092,758 | 4,095,703 | ||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 39,918,386 | $ | 39,413,181 | $ | 39,063,543 | $ | 38,907,479 | $ | 38,551,038 | $ | 37,972,042 | ||||||||||||||
| Selected balance sheet information: | ||||||||||||||||||||||||||
| Total interest-earning assets(1) | $ | 36,677,134 | $ | 36,099,580 | $ | 35,813,498 | $ | 35,594,208 | $ | 35,310,447 | $ | 34,720,650 | ||||||||||||||
| Total interest-bearing liabilities | 29,523,032 | 28,872,365 | 28,856,235 | 28,722,103 | 28,579,449 | 28,023,790 | ||||||||||||||||||||
| Net interest-earning assets | $ | 7,154,102 | $ | 7,227,215 | $ | 6,957,263 | $ | 6,872,105 | $ | 6,730,998 | $ | 6,696,860 | ||||||||||||||
| Tangible common equity(1)(2) | $ | 2,392,099 | $ | 2,401,176 | $ | 2,378,922 | $ | 2,376,444 | $ | 2,337,751 | $ | 2,334,263 | ||||||||||||||
| Unrealized gain on available for sale securities, net of tax(3) | (9,577 | ) | 29,877 | 37,464 | 68,194 | 52,244 | 55,052 | |||||||||||||||||||
| Total core deposits | $ | 25,357,001 | $ | 24,942,599 | $ | 24,426,450 | $ | 24,515,547 | $ | 23,905,674 | $ | 23,717,201 | ||||||||||||||
| Originated loans(4) | $ | 21,101,040 | $ | 20,591,532 | $ | 19,929,719 | $ | 19,528,609 | $ | 19,295,553 | $ | 18,841,896 | ||||||||||||||
| Acquired loans(5) | 2,998,530 | 3,138,568 | 3,517,525 | 3,681,354 | 3,834,931 | 4,028,091 | ||||||||||||||||||||
| Credit related discount on acquired loans(6) | (61,644 | ) | (63,901 | ) | (78,827 | ) | (91,689 | ) | (93,102 | ) | (100,138 | ) | ||||||||||||||
| Total Loans | $ | 24,037,926 | $ | 23,666,199 | $ | 23,368,417 | $ | 23,118,274 | $ | 23,037,382 | $ | 22,769,849 | ||||||||||||||
| (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 the 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 | ) | Excludes unamortized unrealized gains recorded in accumulated other comprehensive income related to available for sale securities transferred to held to maturity. | ||||||||||||||||||||||||
| (4 | ) | Originated loans represent total loans excluding acquired loans. | ||||||||||||||||||||||||
| (5 | ) | Carrying value of acquired loans plus the principal not expected to be collected. | ||||||||||||||||||||||||
| (6 | ) | 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 | For year ending | |||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2015 | September 30, 2015 | December 31, 2014 | December 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||
| Average | Interest(1) | Yields | Average | Interest(1) | Yields | Average | Interest(1) | Yields | Average | Interest(1) | Yields | Average | Interest(1) | Yields | ||||||||||||||||||||||||||||||||||||
| Balances | and Rates(1) | Balances | and Rates(1) | Balances | and Rates(1) | Balances | and Rates(1) | Balances | and Rates(1) | |||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans and leases(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Real estate | $ | 8,476 | $ | 77 | 3.57 | % | $ | 8,277 | $ | 74 | 3.52 | % | $ | 8,087 | $ | 76 | 3.68 | % | $ | 8,319 | $ | 302 | 3.57 | % | $ | 7,944 | $ | 302 | 3.75 | % | ||||||||||||||||||||
| Business | 5,971 | 50 | 3.28 | 5,972 | 50 | 3.26 | 5,791 | 51 | 3.43 | 5,893 | 201 | 3.36 | 5,617 | 200 | 3.51 | |||||||||||||||||||||||||||||||||||
| Total commercial loans | 14,447 | 127 | 3.45 | 14,249 | 124 | 3.41 | 13,878 | 127 | 3.58 | 14,212 | 503 | 3.49 | 13,561 | 502 | 3.65 | |||||||||||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential real estate | 3,346 | 31 | 3.65 | 3,338 | 31 | 3.70 | 3,364 | 32 | 3.79 | 3,337 | 123 | 3.70 | 3,373 | 129 | 3.81 | |||||||||||||||||||||||||||||||||||
| Home equity | 3,052 | 29 | 3.80 | 3,001 | 29 | 3.82 | 2,912 | 29 | 3.94 | 2,989 | 115 | 3.85 | 2,832 | 114 | 4.03 | |||||||||||||||||||||||||||||||||||
| Indirect auto | 2,369 | 17 | 2.90 | 2,293 | 17 | 2.86 | 2,132 | 15 | 2.82 | 2,272 | 64 | 2.82 | 1,870 | 53 | 2.86 | |||||||||||||||||||||||||||||||||||
| Credit cards | 305 | 9 | 11.45 | 306 | 9 | 11.44 | 314 | 9 | 11.47 | 306 | 35 | 11.51 | 312 | 36 | 11.50 | |||||||||||||||||||||||||||||||||||
| Other consumer | 250 | 5 | 8.50 | 255 | 5 | 8.57 | 283 | 6 | 8.47 | 260 | 22 | 8.51 | 290 | 25 | 8.55 | |||||||||||||||||||||||||||||||||||
| Total consumer loans | 9,322 | 91 | 3.88 | 9,193 | 91 | 3.91 | 9,005 | 91 | 4.01 | 9,164 | 359 | 3.93 | 8,677 | 357 | 4.11 | |||||||||||||||||||||||||||||||||||
| Total loans and leases | 23,769 | 218 | 3.65 | 23,442 | 215 | 3.64 | 22,883 | 218 | 3.78 | 23,376 | 862 | 3.69 | 22,238 | 859 | 3.86 | |||||||||||||||||||||||||||||||||||
| Residential MBS | 7,705 | 47 | 2.44 | 7,478 | 45 | 2.40 | 6,892 | 43 | 2.51 | 7,437 | 179 | 2.41 | 6,274 | 164 | 2.61 | |||||||||||||||||||||||||||||||||||
| Commercial MBS | 1,126 | 12 | 4.31 | 1,212 | 12 | 3.88 | 1,512 | 13 | 3.37 | 1,262 | 47 | 3.69 | 1,595 | 53 | 3.35 | |||||||||||||||||||||||||||||||||||
| Other investment securities (3) | 3,540 | 31 | 3.47 | 3,518 | 32 | 3.68 | 3,585 | 32 | 3.59 | 3,555 | 128 | 3.61 | 3,994 | 149 | 3.72 | |||||||||||||||||||||||||||||||||||
| Total securities, at amortized cost | 12,371 | 90 | 2.90 | 12,208 | 89 | 2.92 | 11,989 | 88 | 2.94 | 12,254 | 354 | 2.89 | 11,863 | 366 | 3.09 | |||||||||||||||||||||||||||||||||||
| Money market and other investments | 88 | 1 | 2.29 | 109 | 1 | 1.92 | 161 | - | 1.21 | 114 | 2 | 1.60 | 134 | 2 | 1.58 | |||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 36,228 | $ | 309 | 3.38 | % | 35,759 | $ | 305 | 3.38 | % | 35,033 | $ | 307 | 3.47 | % | 35,744 | $ | 1,218 | 3.41 | % | 34,235 | $ | 1,227 | 3.58 | % | |||||||||||||||||||||||||
| Goodwill and other intangibles | 1,398 | 1,402 | 1,420 | 1,405 | 2,249 | |||||||||||||||||||||||||||||||||||||||||||||
| Other noninterest-earning assets | 1,951 | 1,890 | 1,865 | 1,915 | 1,736 | |||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 39,577 | $ | 39,051 | $ | 38,318 | $ | 39,064 | $ | 38,220 | ||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings accounts | $ | 3,364 | $ | 1 | 0.09 | % | $ | 3,427 | $ | 1 | 0.10 | % | $ | 3,447 | $ | 1 | 0.09 | % | $ | 3,429 | $ | 3 | 0.09 | % | $ | 3,571 | $ | 3 | 0.09 | % | ||||||||||||||||||||
| Interest-bearing checking | 5,333 | - | 0.03 | 5,165 | - | 0.03 | 5,049 | - | 0.03 | 5,159 | 2 | 0.03 | 4,857 | 2 | 0.03 | |||||||||||||||||||||||||||||||||||
| Money market deposits | 10,719 | 8 | 0.30 | 10,403 | 8 | 0.29 | 10,037 | 6 | 0.24 | 10,378 | 30 | 0.29 | 9,944 | 22 | 0.22 | |||||||||||||||||||||||||||||||||||
| Certificates of deposit | 3,515 | 8 | 0.89 | 3,962 | 8 | 0.81 | 3,888 | 7 | 0.72 | 3,792 | 31 | 0.84 | 3,870 | 27 | 0.69 | |||||||||||||||||||||||||||||||||||
| Total interest bearing deposits | 22,931 | 17 | 0.30 | % | 22,957 | 17 | 0.29 | % | 22,421 | 14 | 0.25 | % | 22,758 | 66 | 0.29 | % | 22,241 | 53 | 0.24 | % | ||||||||||||||||||||||||||||||
| Borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 4,014 | 6 | 0.56 | % | 3,953 | 5 | 0.50 | % | 4,917 | 5 | 0.43 | % | 4,399 | 22 | 0.50 | % | 4,678 | 20 | 0.43 | % | ||||||||||||||||||||||||||||||
| Long-term borrowings | 1,971 | 14 | 2.89 | 1,693 | 14 | 3.24 | 734 | 12 | 6.56 | 1,515 | 54 | 3.56 | 733 | 48 | 6.61 | |||||||||||||||||||||||||||||||||||
| Total borrowings | 5,985 | 20 | 1.33 | 5,646 | 19 | 1.32 | 5,651 | 17 | 1.23 | 5,914 | 76 | 1.28 | 5,411 | 69 | 1.27 | |||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 28,916 | $ | 37 | 0.51 | % | 28,603 | $ | 36 | 0.50 | % | 28,072 | $ | 32 | 0.45 | % | 28,672 | $ | 142 | 0.49 | % | 27,653 | $ | 122 | 0.44 | % | |||||||||||||||||||||||||
| Noninterest-bearing deposits | 5,868 | 5,661 | 5,485 | 5,598 | 5,173 | |||||||||||||||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 640 | 637 | 620 | 650 | 560 | |||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 35,424 | 34,901 | 34,177 | 34,920 | 33,386 | |||||||||||||||||||||||||||||||||||||||||||||
| Total stockholders' equity | 4,153 | 4,150 | 4,141 | 4,144 | 4,834 | |||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 39,577 | $ | 39,051 | $ | 38,318 | $ | 39,064 | $ | 38,220 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income (FTE) | $ | 272 | $ | 269 | $ | 275 | $ | 1,076 | $ | 1,105 | ||||||||||||||||||||||||||||||||||||||||
| Taxable Equivalent Adjustment(1) | 5 | 6 | 5 | 20 | 19 | |||||||||||||||||||||||||||||||||||||||||||||
| Total core deposits | $ | 25,284 | $ | 9 | 0.15 | % | $ | 24,656 | $ | 9 | 0.14 | % | $ | 24,018 | $ | 7 | 0.12 | % | $ | 24,564 | $ | 35 | 0.14 | % | $ | 23,545 | $ | 27 | 0.11 | % | ||||||||||||||||||||
| Total transactional deposits | 11,201 | - | 0.02 | % | 10,826 | - | 0.01 | % | 10,534 | - | 0.02 | % | 10,757 | 2 | 0.01 | % | 10,030 | 2 | 0.02 | % | ||||||||||||||||||||||||||||||
| Total deposits | 28,799 | 17 | 0.24 | % | 28,618 | 17 | 0.24 | % | 27,906 | 14 | 0.20 | % | 28,356 | 66 | 0.23 | % | 27,414 | 53 | 0.19 | % | ||||||||||||||||||||||||||||||
| Tax equivalent net interest rate spread | 2.87 | % | 2.88 | % | 3.02 | % | 2.92 | % | 3.14 | % | ||||||||||||||||||||||||||||||||||||||||
| Tax equivalent net interest rate margin | 2.98 | % | 2.98 | % | 3.11 | % | 3.01 | % | 3.23 | % | ||||||||||||||||||||||||||||||||||||||||
| (1 | ) | Tax equivalent interest income is calculated using a 35% tax rate. | ||||||||||||||||||||||||||||||||||||||||||||||||
| (2 | ) | Includes nonaccrual loans. | ||||||||||||||||||||||||||||||||||||||||||||||||
| (3 | ) | Includes debt securities, collateralized loan obligations, asset-backed securities, FHLB and FRB common stock, and other investment securities. | ||||||||||||||||||||||||||||||||||||||||||||||||
| First Niagara Financial Group, Inc. | |||||||||||||||||||||||||||||||||
| Allowance for Loans and Lease Losses & Asset Quality | |||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||
| 2015 | 2014 | For year ending | |||||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Third | December 31, | December 31, | ||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2015 | 2014 | ||||||||||||||||||||||||||
| Beginning balance | $ | 238,700 | $ | 235,600 | $ | 231,138 | $ | 234,251 | $ | 222,753 | $ | 219,426 | $ | 234,251 | $ | 209,274 | |||||||||||||||||
| Net loan (charge-offs) recoveries: | |||||||||||||||||||||||||||||||||
| Commercial real estate | $ | (1,476 | ) | $ | (2,686 | ) | $ | (5,525 | ) | $ | (5,825 | ) | $ | (2,008 | ) | $ | (2,259 | ) | $ | (15,512 | ) | $ | (8,247 | ) | |||||||||
| Commercial business | (10,441 | ) | (6,286 | ) | (3,513 | ) | (4,178 | ) | (12,650 | ) | (3,148 | ) | (24,418 | ) | (26,731 | ) | |||||||||||||||||
| Residential real estate | (94 | ) | (230 | ) | (197 | ) | (266 | ) | (476 | ) | (102 | ) | (787 | ) | (1,104 | ) | |||||||||||||||||
| Home equity | (723 | ) | (1,056 | ) | (1,367 | ) | (1,526 | ) | (1,406 | ) | (1,131 | ) | (4,672 | ) | (6,876 | ) | |||||||||||||||||
| Indirect auto | (2,122 | ) | (1,743 | ) | (1,342 | ) | (1,226 | ) | (2,241 | ) | (1,621 | ) | (6,433 | ) | (7,403 | ) | |||||||||||||||||
| Credit cards | (2,450 | ) | (2,215 | ) | (2,522 | ) | (2,450 | ) | (2,464 | ) | (2,726 | ) | (9,637 | ) | (11,164 | ) | |||||||||||||||||
| Other consumer | (1,758 | ) | (1,952 | ) | (1,528 | ) | (1,807 | ) | (1,457 | ) | (1,986 | ) | (7,045 | ) | (6,698 | ) | |||||||||||||||||
| Total net loan charge-offs | $ | (19,064 | ) | $ | (16,168 | ) | $ | (15,994 | ) | $ | (17,278 | ) | $ | (22,702 | ) | $ | (12,973 | ) | $ | (68,504 | ) | $ | (68,223 | ) | |||||||||
| Provision for loan losses | 22,400 | 19,268 | 20,456 | 14,165 | 34,200 | 16,300 | 76,289 | 93,200 | |||||||||||||||||||||||||
| Ending balance | $ | 242,036 | $ | 238,700 | $ | 235,600 | $ | 231,138 | $ | 234,251 | $ | 222,753 | $ | 242,036 | $ | 234,251 | |||||||||||||||||
| Supplemental information | |||||||||||||||||||||||||||||||||
| Allowance to loans | 1.01 | % | 1.01 | % | 1.01 | % | 1.00 | % | 1.02 | % | 0.98 | % | 1.01 | % | 1.02 | % | |||||||||||||||||
| Allowance for originated loans to originated loans(1) | 1.12 | % | 1.13 | % | 1.15 | % | 1.15 | % | 1.18 | % | 1.16 | % | 1.12 | % | 1.18 | % | |||||||||||||||||
| Net charge-offs (recoveries) to average loans (annualized) | |||||||||||||||||||||||||||||||||
| Commercial real estate | 0.07 | % | 0.13 | % | 0.27 | % | 0.29 | % | 0.10 | % | 0.11 | % | 0.19 | % | 0.10 | % | |||||||||||||||||
| Commercial business | 0.70 | % | 0.42 | % | 0.24 | % | 0.29 | % | 0.87 | % | 0.22 | % | 0.41 | % | 0.48 | % | |||||||||||||||||
| Total commercial loans | 0.33 | % | 0.25 | % | 0.26 | % | 0.28 | % | 0.42 | % | 0.16 | % | 0.28 | % | 0.26 | % | |||||||||||||||||
| Residential real estate | 0.01 | % | 0.03 | % | 0.02 | % | 0.03 | % | 0.06 | % | 0.01 | % | 0.02 | % | 0.03 | % | |||||||||||||||||
| Home equity | 0.09 | % | 0.14 | % | 0.18 | % | 0.21 | % | 0.19 | % | 0.16 | % | 0.16 | % | 0.24 | % | |||||||||||||||||
| Indirect auto | 0.36 | % | 0.30 | % | 0.24 | % | 0.22 | % | 0.42 | % | 0.33 | % | 0.28 | % | 0.40 | % | |||||||||||||||||
| Credit cards | 3.21 | % | 2.90 | % | 3.32 | % | 3.16 | % | 3.13 | % | 3.49 | % | 3.14 | % | 3.57 | % | |||||||||||||||||
| Other consumer | 2.81 | % | 3.06 | % | 2.35 | % | 2.63 | % | 2.06 | % | 2.77 | % | 2.71 | % | 2.31 | % | |||||||||||||||||
| Total consumer loans | 0.31 | % | 0.32 | % | 0.31 | % | 0.33 | % | 0.36 | % | 0.35 | % | 0.31 | % | 0.38 | % | |||||||||||||||||
| Total loans | 0.32 | % | 0.28 | % | 0.28 | % | 0.30 | % | 0.40 | % | 0.23 | % | 0.29 | % | 0.31 | % | |||||||||||||||||
| Net charge-offs (recoveries) of originated loans to average originated loans (annualized)(1) | |||||||||||||||||||||||||||||||||
| Commercial real estate | 0.08 | % | 0.14 | % | 0.31 | % | 0.24 | % | 0.06 | % | 0.13 | % | 0.19 | % | 0.10 | % | |||||||||||||||||
| Commercial business | 0.72 | % | 0.44 | % | 0.25 | % | 0.31 | % | 0.93 | % | 0.24 | % | 0.43 | % | 0.51 | % | |||||||||||||||||
| Total commercial loans | 0.36 | % | 0.27 | % | 0.28 | % | 0.27 | % | 0.44 | % | 0.18 | % | 0.29 | % | 0.28 | % | |||||||||||||||||
| Residential real estate | 0.02 | % | 0.04 | % | 0.04 | % | 0.05 | % | 0.09 | % | 0.02 | % | 0.04 | % | 0.06 | % | |||||||||||||||||
| Home equity | 0.14 | % | 0.14 | % | 0.17 | % | 0.16 | % | 0.15 | % | 0.17 | % | 0.15 | % | 0.17 | % | |||||||||||||||||
| Indirect auto | 0.36 | % | 0.30 | % | 0.24 | % | 0.22 | % | 0.42 | % | 0.33 | % | 0.28 | % | 0.40 | % | |||||||||||||||||
| Credit cards | 3.21 | % | 2.90 | % | 3.32 | % | 3.16 | % | 3.13 | % | 3.49 | % | 3.14 | % | 3.57 | % | |||||||||||||||||
| Other consumer | 2.81 | % | 3.06 | % | 2.35 | % | 2.63 | % | 2.06 | % | 2.77 | % | 2.71 | % | 2.31 | % | |||||||||||||||||
| Total consumer loans | 0.39 | % | 0.38 | % | 0.37 | % | 0.38 | % | 0.44 | % | 0.45 | % | 0.38 | % | 0.48 | % | |||||||||||||||||
| Total loans | 0.37 | % | 0.31 | % | 0.31 | % | 0.31 | % | 0.44 | % | 0.27 | % | 0.32 | % | 0.34 | % | |||||||||||||||||
| Nonperforming loans: | |||||||||||||||||||||||||||||||||
| Originated(1): | |||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 44,438 | $ | 54,699 | $ | 60,021 | $ | 65,655 | $ | 53,164 | $ | 57,340 | $ | 44,438 | $ | 53,164 | |||||||||||||||||
| Commercial business | 56,382 | 45,389 | 42,979 | 54,506 | 45,201 | 36,939 | 56,382 | 45,201 | |||||||||||||||||||||||||
| Residential real estate | 31,513 | 32,455 | 32,877 | 32,791 | 33,652 | 36,113 | 31,513 | 33,652 | |||||||||||||||||||||||||
| Home equity | 35,561 | 34,191 | 27,092 | 26,163 | 23,749 | 23,392 | 35,561 | 23,749 | |||||||||||||||||||||||||
| Indirect auto | 15,131 | 13,795 | 13,066 | 13,399 | 12,616 | 11,890 | 15,131 | 12,616 | |||||||||||||||||||||||||
| Other consumer | 5,201 | 5,047 | 4,917 | 5,065 | 5,140 | 5,134 | 5,201 | 5,140 | |||||||||||||||||||||||||
| Total originated nonperforming loans | 188,226 | 185,576 | 180,952 | 197,579 | 173,522 | 170,808 | 188,226 | 173,522 | |||||||||||||||||||||||||
| Total acquired nonperforming loans(2) | 25,335 | 25,365 | 26,553 | 30,236 | 30,223 | 28,611 | 25,335 | 30,223 | |||||||||||||||||||||||||
| Total nonperforming loans | 213,561 | 210,941 | 207,505 | 227,815 | 203,745 | 199,419 | 213,561 | 203,745 | |||||||||||||||||||||||||
| Real estate owned | 16,063 | 18,359 | 17,397 | 19,128 | 20,541 | 20,261 | 16,063 | 20,541 | |||||||||||||||||||||||||
| Total nonperforming assets(3) | $ | 229,624 | $ | 229,300 | $ | 224,902 | $ | 246,943 | $ | 224,286 | $ | 219,680 | $ | 229,624 | $ | 224,286 | |||||||||||||||||
| Accruing troubled debt restructurings (TDR) | $ | 62,630 | $ | 60,941 | $ | 64,643 | $ | 64,401 | $ | 67,102 | $ | 69,199 | $ | 62,630 | $ | 67,102 | |||||||||||||||||
| Loans 90 days past due still accruing(4) | 67,718 | 69,879 | 78,279 | 87,213 | 93,903 | 108,615 | 67,718 | 93,903 | |||||||||||||||||||||||||
| Total classified loans(5) | 602,912 | 591,771 | 592,148 | 615,518 | 609,316 | 649,320 | 602,912 | 609,316 | |||||||||||||||||||||||||
| Total criticized loans(6) | $ | 944,779 | $ | 858,243 | $ | 938,951 | $ | 990,656 | $ | 1,041,050 | $ | 1,089,851 | $ | 944,779 | $ | 1,041,050 | |||||||||||||||||
| Total nonperforming loans to loans | 0.89 | % | 0.89 | % | 0.89 | % | 0.99 | % | 0.88 | % | 0.88 | % | 0.89 | % | 0.88 | % | |||||||||||||||||
| Total nonperforming originated loans to originated loans(1) | 0.89 | % | 0.90 | % | 0.91 | % | 1.01 | % | 0.90 | % | 0.91 | % | 0.89 | % | 0.90 | % | |||||||||||||||||
| Total nonperforming assets to loans and real estate owned | 0.95 | % | 0.97 | % | 0.96 | % | 1.07 | % | 0.97 | % | 0.96 | % | 0.95 | % | 0.97 | % | |||||||||||||||||
| Total nonperforming assets to assets | 0.58 | % | 0.58 | % | 0.58 | % | 0.63 | % | 0.58 | % | 0.58 | % | 0.58 | % | 0.58 | % | |||||||||||||||||
| Allowance to nonperforming loans | 113.3 | % | 113.2 | % | 113.5 | % | 101.5 | % | 115.0 | % | 111.7 | % | 113.3 | % | 115.0 | % | |||||||||||||||||
| Originated loans(1) | $ | 21,101,040 | $ | 20,591,532 | $ | 19,929,719 | $ | 19,528,609 | $ | 19,295,553 | $ | 18,841,896 | $ | 21,101,040 | $ | 19,295,553 | |||||||||||||||||
| Acquired loans(7) | 2,998,530 | 3,138,568 | 3,517,525 | 3,681,354 | 3,834,931 | 4,028,091 | 2,998,530 | 3,834,931 | |||||||||||||||||||||||||
| Credit related discount on acquired loans(8) | (61,644 | ) | (63,901 | ) | (78,827 | ) | (91,689 | ) | (93,102 | ) | (100,138 | ) | (61,644 | ) | (93,102 | ) | |||||||||||||||||
| Total Loans | $ | 24,037,926 | $ | 23,666,199 | $ | 23,368,417 | $ | 23,118,274 | $ | 23,037,382 | $ | 22,769,849 | $ | 24,037,926 | $ | 23,037,382 | |||||||||||||||||
| (1 | ) | Originated loans represent total loans excluding acquired loans. | |||||||||||||||||||||||||||||||
| (2 | ) | Nonperforming acquired loans include certain lines of credit that are considered nonaccruing. | |||||||||||||||||||||||||||||||
| (3 | ) | Does not include a $5.5 million nonperforming loan that was classified as held for sale at March 31, 2015, which was sold and for which we received the proceeds on April 2, 2015. | |||||||||||||||||||||||||||||||
| (4 | ) | Includes acquired loans that were originally recorded at fair value upon acquisition, credit card loans, and loans that have matured which are in the process of collection. | |||||||||||||||||||||||||||||||
| (5 | ) | 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 "Asset Quality Review" in our Annual Report on 10-K for the year ended December 31, 2014. | |||||||||||||||||||||||||||||||
| (6 | ) | Criticized loans includes consumer loans when they are 90 days or more past due. Criticized loans include special mention, substandard, doubtful, and loss. | |||||||||||||||||||||||||||||||
| (7 | ) | Represents the carrying value of acquired loans plus the principal not expected to be collected. | |||||||||||||||||||||||||||||||
| (8 | ) | Represent principal on acquired loans not expected to be collected. | |||||||||||||||||||||||||||||||
| First Niagara Financial Group, Inc. | |||||||||||||||||||||||||
| Key Statistics | |||||||||||||||||||||||||
| (Risk weighted assets in millions; share counts in thousands) | |||||||||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||
| First Niagara Financial Group, Inc. capital ratios(1)(2): | |||||||||||||||||||||||||
| Tier 1 risk based capital | 10.08 | % | 10.05 | % | 10.03 | % | 10.02 | % | 9.81 | % | 9.82 | % | |||||||||||||
| Total risk based capital | 12.01 | % | 11.97 | % | 11.96 | % | 11.95 | % | 11.75 | % | 11.75 | % | |||||||||||||
| Common equity tier 1 capital | 8.55 | % | 8.52 | % | 8.50 | % | 8.48 | % | N/A | N/A | |||||||||||||||
| Tier 1 common capital(3) | N/A | N/A | N/A | N/A | 8.20 | % | 8.19 | % | |||||||||||||||||
| Leverage | 7.62 | % | 7.66 | % | 7.60 | % | 7.56 | % | 7.50 | % | 7.34 | % | |||||||||||||
| Equity to assets | 10.34 | % | 10.50 | % | 10.55 | % | 10.60 | % | 10.62 | % | 10.79 | % | |||||||||||||
| Tangible common equity to tangible assets(3) | 6.21 | % | 6.32 | % | 6.32 | % | 6.34 | % | 6.30 | % | 6.39 | % | |||||||||||||
| Total risk weighted assets | $ | 28,881 | $ | 28,716 | $ | 28,445 | $ | 28,152 | $ | 28,186 | $ | 27,729 | |||||||||||||
| First Niagara Bank, N.A capital ratios(1)(2): | |||||||||||||||||||||||||
| Tier 1 risk based capital | 10.65 | % | 10.67 | % | 10.66 | % | 10.65 | % | 10.48 | % | 10.41 | % | |||||||||||||
| Total risk based capital | 11.55 | % | 11.56 | % | 11.54 | % | 11.53 | % | 11.37 | % | 11.27 | % | |||||||||||||
| Common equity tier 1 capital | 10.65 | % | 10.67 | % | 10.66 | % | 10.65 | % | N/A | N/A | |||||||||||||||
| Leverage | 8.05 | % | 8.12 | % | 8.07 | % | 8.03 | % | 8.01 | % | 7.78 | % | |||||||||||||
| Total risk weighted assets | $ | 28,813 | $ | 28,632 | $ | 28,359 | $ | 28,068 | $ | 28,146 | $ | 27,686 | |||||||||||||
| Number of branches | 392 | 394 | 394 | 394 | 411 | 411 | |||||||||||||||||||
| Full time equivalent employees | 5,428 | 5,397 | 5,364 | 5,322 | 5,572 | 5,768 | |||||||||||||||||||
| Share information and per share metrics: | |||||||||||||||||||||||||
| Common shares outstanding | 354,762 | 354,788 | 354,890 | 353,717 | 353,388 | 355,423 | |||||||||||||||||||
| Preferred shares outstanding | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | |||||||||||||||||||
| Treasury shares | 11,240 | 11,214 | 11,112 | 12,285 | 12,614 | 10,579 | |||||||||||||||||||
| Market price (NASDAQ: FNFG): | $ | 10.85 | $ | 10.21 | $ | 9.44 | $ | 8.84 | $ | 8.43 | $ | 8.33 | |||||||||||||
| Book value per common share(4) | 10.78 | 10.82 | 10.77 | 10.80 | 10.71 | 10.72 | |||||||||||||||||||
| Tangible book value per common share(3)(4) | 6.81 | 6.84 | 6.77 | 6.78 | 6.67 | 6.66 | |||||||||||||||||||
| Price/Book | 100.65 | % | 94.36 | % | 87.65 | % | 81.85 | % | 78.71 | % | 77.71 | % | |||||||||||||
| Price/Tangible book(1) | 159.32 | % | 149.27 | % | 139.44 | % | 130.38 | % | 126.39 | % | 125.08 | % | |||||||||||||
| Common stock dividends | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 | |||||||||||||
| Preferred stock dividends | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | |||||||||||||||||||
| Dividend payout ratio | 66.67 | % | 53.33 | % | 53.33 | % | 66.67 | % | 47.06 | % | N/M | ||||||||||||||
| Dividend yield (annualized) | 2.93 | % | 3.11 | % | 3.40 | % | 3.67 | % | 3.77 | % | 3.81 | % | |||||||||||||
| N/M | Not meaningful. | ||||||||||||||||||||||||
| (1 | ) | Represents an estimate as of December 31, 2015. All preceding quarters represent actual amounts. | |||||||||||||||||||||||
| (2 | ) | Basel III Transitional rules became effective for us on January 1, 2015. Ratios and amounts presented prior to March 31, 2015 are calculated under Basel I rules. As of March 31, 2015, the ratios presented are calculated under the Basel III Standardized Transitional Approach. Common equity tier 1 capital under Basel III replaced Tier 1 common capital under Basel I. Prior to Basel III becoming effective on January 1, 2015, tier 1 common capital under Basel I was a non-GAAP financial measure. | |||||||||||||||||||||||
| (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 | ) | Share count excludes unallocated ESOP shares prior to January 1, 2015 and unvested restricted stock shares. | |||||||||||||||||||||||
| First Niagara Financial Group, Inc. | ||||||||||||||||||||||||||||||||
| Appendix A - Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
| 2015 | 2014 | For year ending | ||||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Third | December 31, | December 31, | |||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2015 | 2014 | |||||||||||||||||||||||||
| Financial ratios computed on an operating basis(1): | ||||||||||||||||||||||||||||||||
| Earnings per basic share | $ | 0.16 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.19 | $ | 0.61 | $ | 0.71 | ||||||||||||||||
| Earnings per diluted share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.19 | $ | 0.61 | $ | 0.70 | ||||||||||||||||
| Weighted average shares outstanding - basic(2) | 351,306 | 351,293 | 351,126 | 350,741 | 350,444 | 350,381 | 351,119 | 350,237 | ||||||||||||||||||||||||
| Weighted average shares outstanding - diluted(2) | 353,797 | 353,248 | 352,791 | 352,621 | 352,152 | 351,898 | 353,040 | 351,750 | ||||||||||||||||||||||||
| Noninterest income as a percentage of net revenue(3) | 25.12 | % | 24.05 | % | 24.76 | % | 23.83 | % | 22.24 | % | 21.62 | % | 24.45 | % | 22.22 | % | ||||||||||||||||
| Pre-tax, pre-provision income | 108,531 | 101,501 | 101,818 | 101,667 | 98,714 | 99,210 | 413,517 | 415,569 | ||||||||||||||||||||||||
| Pre-tax, pre-provision income per diluted share | $ | 0.31 | $ | 0.29 | $ | 0.29 | $ | 0.29 | $ | 0.28 | $ | 0.28 | $ | 1.17 | $ | 1.18 | ||||||||||||||||
| Pre-tax, pre-provision return on average assets | 1.09 | % | 1.03 | % | 1.05 | % | 1.07 | % | 1.02 | % | 1.02 | % | 1.06 | % | 1.09 | % | ||||||||||||||||
| Net interest margin(4) | 2.98 | % | 2.98 | % | 3.02 | % | 3.07 | % | 3.11 | % | 3.21 | % | 3.01 | % | 3.23 | % | ||||||||||||||||
| Interest yield on average loans(4) | 3.65 | % | 3.64 | % | 3.73 | % | 3.75 | % | 3.78 | % | 3.80 | % | 3.69 | % | 3.86 | % | ||||||||||||||||
| Rate paid on interest-bearing liabilities | 0.51 | % | 0.50 | % | 0.49 | % | 0.48 | % | 0.45 | % | 0.44 | % | 0.49 | % | 0.44 | % | ||||||||||||||||
| Efficiency ratio | 69.5 | % | 70.7 | % | 70.9 | % | 70.5 | % | 71.5 | % | 71.5 | % | 70.4 | % | 70.2 | % | ||||||||||||||||
| Effective tax rate | 26.6 | % | 26.0 | % | 24.7 | % | 30.0 | % | 3.7 | % | 10.3 | % | 26.9 | % | 12.7 | % | ||||||||||||||||
| Return on average assets | 0.63 | % | 0.61 | % | 0.63 | % | 0.65 | % | 0.63 | % | 0.76 | % | 0.63 | % | 0.73 | % | ||||||||||||||||
| Return on average equity | 6.00 | % | 5.78 | % | 5.90 | % | 6.12 | % | 5.82 | % | 5.76 | % | 5.95 | % | 5.77 | % | ||||||||||||||||
| Return on average tangible equity(5) | 9.05 | % | 8.73 | % | 8.94 | % | 9.30 | % | 8.85 | % | 11.35 | % | 9.00 | % | 10.80 | % | ||||||||||||||||
| Return on average common equity | 5.75 | % | 5.51 | % | 5.63 | % | 5.85 | % | 5.54 | % | 5.54 | % | 5.68 | % | 5.54 | % | ||||||||||||||||
| Return on average tangible common equity(6) | 9.07 | % | 8.72 | % | 8.94 | % | 9.34 | % | 8.85 | % | 11.73 | % | 9.01 | % | 11.08 | % | ||||||||||||||||
| Reconciliation of noninterest expense on operating basis to reported noninterest expense(1): | ||||||||||||||||||||||||||||||||
| Total noninterest expense on operating basis (Non-GAAP) | $ | 247,419 | $ | 245,433 | $ | 247,899 | $ | 243,521 | $ | 248,246 | $ | 249,461 | $ | 984,272 | $ | 980,202 | ||||||||||||||||
| Restructuring charges | 3,378 | - | - | 17,517 | 9,066 | 2,364 | 20,895 | 21,786 | ||||||||||||||||||||||||
| Goodwill impairment | - | - | - | - | - | 1,100,000 | - | 1,100,000 | ||||||||||||||||||||||||
| Deposit account remediation | - | - | - | - | (23,000 | ) | 45,000 | - | 22,000 | |||||||||||||||||||||||
| Merger and acquisition integration expenses | 14,198 | - | - | - | - | - | 14,198 | - | ||||||||||||||||||||||||
| Total reported noninterest expense (GAAP) | $ | 264,995 | $ | 245,433 | $ | 247,899 | $ | 261,038 | $ | 234,312 | $ | 1,396,825 | $ | 1,019,365 | $ | 2,123,988 | ||||||||||||||||
| Reconciliation of net operating income to net income(1): | ||||||||||||||||||||||||||||||||
| Net operating income (Non-GAAP) | $ | 62,813 | $ | 60,482 | $ | 61,010 | $ | 62,246 | $ | 60,697 | $ | 74,009 | $ | 246,551 | $ | 279,136 | ||||||||||||||||
| Nonoperating income and expenses, net of tax: | ||||||||||||||||||||||||||||||||
| Restructuring charges | 2,094 | - | - | 10,861 | 6,364 | 1,555 | 12,955 | 16,264 | ||||||||||||||||||||||||
| Goodwill impairment | - | - | - | - | - | 963,267 | - | 963,267 | ||||||||||||||||||||||||
| Deposit account remediation | - | - | - | - | (14,734 | ) | 29,233 | - | 14,499 | |||||||||||||||||||||||
| Merger and acquisition integration expenses | 9,919 | - | - | - | - | - | 9,919 | - | ||||||||||||||||||||||||
| Total nonoperating expenses, net of tax | 12,013 | - | - | 10,861 | (8,370 | ) | 994,055 | 22,874 | 994,030 | |||||||||||||||||||||||
| Net income (loss) (GAAP) | $ | 50,800 | $ | 60,482 | $ | 61,010 | $ | 51,385 | $ | 69,067 | $ | (920,046 | ) | $ | 223,677 | $ | (714,894 | ) | ||||||||||||||
| 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) | $ | 55,266 | $ | 52,935 | $ | 53,463 | $ | 54,699 | $ | 53,150 | $ | 66,462 | $ | 216,363 | $ | 248,948 | ||||||||||||||||
| Nonoperating income and expenses, net of tax: | ||||||||||||||||||||||||||||||||
| Restructuring charges | 2,094 | - | - | 10,861 | 6,364 | 1,555 | 12,955 | 16,264 | ||||||||||||||||||||||||
| Goodwill impairment | - | - | - | - | - | 963,267 | - | 963,267 | ||||||||||||||||||||||||
| Deposit account remediation | - | - | - | - | (14,734 | ) | 29,233 | - | 14,499 | |||||||||||||||||||||||
| Merger and acquisition integration expenses | 9,919 | - | - | - | - | - | 9,919 | - | ||||||||||||||||||||||||
| Total nonoperating income and expenses, net of tax | 12,013 | - | - | 10,861 | (8,370 | ) | 994,055 | 22,874 | 994,030 | |||||||||||||||||||||||
| Net income (loss) available to common stockholders (GAAP) | $ | 43,253 | $ | 52,935 | $ | 53,463 | $ | 43,838 | $ | 61,520 | $ | (927,593 | ) | $ | 193,489 | $ | (745,082 | ) | ||||||||||||||
| Computation of pre-tax,pre-provision income: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 266,549 | $ | 263,491 | $ | 263,110 | $ | 262,944 | $ | 269,783 | $ | 273,279 | $ | 1,056,094 | $ | 1,085,621 | ||||||||||||||||
| Noninterest income | 89,401 | 83,443 | 86,607 | 82,244 | 77,177 | 75,392 | 341,695 | 310,150 | ||||||||||||||||||||||||
| Noninterest expense | (264,995 | ) | (245,433 | ) | (247,899 | ) | (261,038 | ) | (234,312 | ) | (1,396,825 | ) | (1,019,365 | ) | (2,123,988 | ) | ||||||||||||||||
| Pre-tax, pre-provision income (loss) (GAAP) | 90,955 | 101,501 | 101,818 | 84,150 | 112,648 | (1,048,154 | ) | 378,424 | (728,217 | ) | ||||||||||||||||||||||
| Add back: non-operating noninterest expenses (1) | 17,576 | - | - | 17,517 | (13,934 | ) | 1,147,364 | 35,093 | 1,143,786 | |||||||||||||||||||||||
| Pre-tax, pre-provision income (Non-GAAP)(1) | $ | 108,531 | $ | 101,501 | $ | 101,818 | $ | 101,667 | $ | 98,714 | $ | 99,210 | $ | 413,517 | $ | 415,569 | ||||||||||||||||
| (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 | ) | Net revenue is comprised of net interest income and noninterest income. | ||||||||||||||||||||||||||||||
| (4 | ) | Yields and rates calculated on a tax equivalent basis. | ||||||||||||||||||||||||||||||
| (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) | |||||||||||||||||||||||||||||||
| 2015 | 2014 | For year ending | |||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Third | December 31, | December 31, | ||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2015 | 2014 | ||||||||||||||||||||||||
| Computation of Ending Tangible Assets: | |||||||||||||||||||||||||||||||
| Total assets | $ | 39,918,386 | $ | 39,413,181 | $ | 39,063,543 | $ | 38,907,479 | $ | 38,551,038 | $ | 37,972,042 | $ | 39,918,386 | $ | 38,551,038 | |||||||||||||||
| Less: Goodwill and other intangibles | (1,396,227 | ) | (1,400,199 | ) | (1,404,201 | ) | (1,410,800 | ) | (1,417,005 | ) | (1,423,437 | ) | (1,396,227 | ) | (1,417,005 | ) | |||||||||||||||
| Tangible assets | $ | 38,522,159 | $ | 38,012,982 | $ | 37,659,342 | $ | 37,496,679 | $ | 37,134,033 | $ | 36,548,605 | $ | 38,522,159 | $ | 37,134,033 | |||||||||||||||
| Computation of Average Tangible Assets: | |||||||||||||||||||||||||||||||
| Total assets | $ | 39,576,697 | $ | 39,051,359 | $ | 38,913,219 | $ | 38,706,545 | $ | 38,317,930 | $ | 38,591,115 | $ | 39,064,310 | $ | 38,219,967 | |||||||||||||||
| Less: Goodwill and other intangibles | (1,398,122 | ) | (1,402,138 | ) | (1,407,946 | ) | (1,413,765 | ) | (1,420,119 | ) | (2,514,581 | ) | (1,405,441 | ) | (2,248,958 | ) | |||||||||||||||
| Tangible assets | $ | 38,178,575 | $ | 37,649,221 | $ | 37,505,273 | $ | 37,292,780 | $ | 36,897,811 | $ | 36,076,534 | $ | 37,658,869 | $ | 35,971,009 | |||||||||||||||
| Computation of Ending Tangible Equity: | |||||||||||||||||||||||||||||||
| Total stockholders' equity | $ | 4,126,328 | $ | 4,139,377 | $ | 4,121,125 | $ | 4,125,246 | $ | 4,092,758 | $ | 4,095,703 | $ | 4,126,328 | $ | 4,092,758 | |||||||||||||||
| Less: Goodwill and other intangibles | (1,396,227 | ) | (1,400,199 | ) | (1,404,201 | ) | (1,410,800 | ) | (1,417,005 | ) | (1,423,437 | ) | (1,396,227 | ) | (1,417,005 | ) | |||||||||||||||
| Tangible equity | $ | 2,730,101 | $ | 2,739,178 | $ | 2,716,924 | $ | 2,714,446 | $ | 2,675,753 | $ | 2,672,266 | $ | 2,730,101 | $ | 2,675,753 | |||||||||||||||
| Computation of Ending Tangible Common Equity: | |||||||||||||||||||||||||||||||
| Total stockholders' equity | $ | 4,126,328 | $ | 4,139,377 | $ | 4,121,125 | $ | 4,125,246 | $ | 4,092,758 | $ | 4,095,703 | $ | 4,126,328 | $ | 4,092,758 | |||||||||||||||
| Less: Goodwill and other intangibles | (1,396,227 | ) | (1,400,199 | ) | (1,404,201 | ) | (1,410,800 | ) | (1,417,005 | ) | (1,423,437 | ) | (1,396,227 | ) | (1,417,005 | ) | |||||||||||||||
| Less: Preferred stockholders' equity | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | |||||||||||||||
| Tangible common equity | $ | 2,392,099 | $ | 2,401,176 | $ | 2,378,922 | $ | 2,376,444 | $ | 2,337,751 | $ | 2,334,264 | $ | 2,392,099 | $ | 2,337,751 | |||||||||||||||
| Computation of Average Tangible Equity: | |||||||||||||||||||||||||||||||
| Total stockholders' equity | $ | 4,152,977 | $ | 4,149,635 | $ | 4,145,334 | $ | 4,127,743 | $ | 4,141,141 | $ | 5,100,494 | $ | 4,144,007 | $ | 4,833,663 | |||||||||||||||
| Less: Goodwill and other intangibles | (1,398,122 | ) | (1,402,138 | ) | (1,407,946 | ) | (1,413,765 | ) | (1,420,119 | ) | (2,514,581 | ) | (1,405,441 | ) | (2,248,958 | ) | |||||||||||||||
| Tangible equity | $ | 2,754,855 | $ | 2,747,497 | $ | 2,737,388 | $ | 2,713,978 | $ | 2,721,022 | $ | 2,585,913 | $ | 2,738,566 | $ | 2,584,705 | |||||||||||||||
| Computation of Average Tangible Common Equity: | |||||||||||||||||||||||||||||||
| Total stockholders' equity | $ | 4,152,977 | $ | 4,149,635 | $ | 4,145,334 | $ | 4,127,743 | $ | 4,141,141 | $ | 5,100,494 | $ | 4,144,007 | $ | 4,833,663 | |||||||||||||||
| Less: Goodwill and other intangibles | (1,398,122 | ) | (1,402,138 | ) | (1,407,946 | ) | (1,413,765 | ) | (1,420,119 | ) | (2,514,581 | ) | (1,405,441 | ) | (2,248,958 | ) | |||||||||||||||
| Less: Preferred stockholders' equity | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | (338,002 | ) | |||||||||||||||
| Tangible common equity | $ | 2,416,853 | $ | 2,409,495 | $ | 2,399,386 | $ | 2,375,976 | $ | 2,383,020 | $ | 2,247,911 | $ | 2,400,564 | $ | 2,246,703 | |||||||||||||||
| Computation of Tier 1 Common Capital: | |||||||||||||||||||||||||||||||
| Tier 1 capital | N/A | N/A | N/A | N/A | $ | 2,764,117 | $ | 2,722,685 | N/A | $ | 2,764,117 | ||||||||||||||||||||
| Less: Qualifying restricted core capital elements | N/A | N/A | N/A | N/A | (113,785 | ) | (113,556 | ) | N/A | (113,785 | ) | ||||||||||||||||||||
| Less: Perpetual non-cumulative preferred stock | N/A | N/A | N/A | N/A | (338,002 | ) | (338,002 | ) | N/A | (338,002 | ) | ||||||||||||||||||||
| Tier 1 common capital (Non-GAAP) | N/A | N/A | N/A | N/A | $ | 2,312,330 | $ | 2,271,127 | N/A | $ | 2,312,330 | ||||||||||||||||||||