Third Quarter Highlights:
- Earnings increased 13% QOQ to $71.6 million, or $0.20 per diluted share
-
Pre-tax Pre-Provision Income Increased 6% QOQ
-- Net interest margin increased 4 basis points from the second quarter to 3.40%
-- Fee income declined 4% driven by lower mortgage banking revenues -
Organic loan growth continues, with average loans up 10% QOQ
-- Average commercial business and real estate loans increased 7% QOQ
-- Continued momentum in indirect auto loans, which increased by $280 million -
Noninterest-bearing checking balances increase 6% QOQ
-- Transactional deposits averaged 35% of deposits, up from 31% a year-ago
-- Continued investment in mobile and digital banking to match evolving consumer banking preferences -
Strong credit quality maintained
-- NCOs remained flat compared to the prior quarter at 0.33% of average originated loans
-- Nonperforming originated loans decline 6% QOQ
BUFFALO, N.Y., Oct. 18, 2013 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (Nasdaq:FNFG) today reported net income available to common shareholders of $71.6 million or $0.20 per diluted share for the third quarter of 2013, highlighted by strong balance sheet growth, consistent credit quality and positive operating leverage.
"We delivered another quarter of strong earnings despite the challenges presented by the macro-economic and competitive environment," said Gary M. Crosby, Interim President and Chief Executive Officer. "We are very focused on maximizing returns and expect to continue to deliver industry-leading loan growth while maintaining our high underwriting standards. We will continue to diligently invest in opportunities that drive revenue production, achieve operating leverage and enhance risk mitigation capabilities to position us well for the future."
Third Quarter Results
In the third quarter of 2013, First Niagara reported net income available to common shareholders of $71.6 million, or $0.20 per diluted share. In the third quarter of 2012, First Niagara reported net income available to common shareholders of $50.8 million, or $0.14 per diluted share, that included $29.4 million in pre-tax acquisition and restructuring expenses incurred primarily in connection with the closing of the HSBC branch acquisition in May 2012. For the second quarter of 2013, net income to common shareholders was $63.6 million, or $0.18 per diluted share.
Balance sheet growth remained strong as average loans increased 10% annualized compared to the prior quarter. Average commercial business and real estate loans increased 7% annualized over the prior quarter driven by a 9% increase in commercial real estate loans. Average consumer loans increased 14% annualized driven by continued growth in indirect auto loan balances, partially offset by a decline in residential mortgage loans. Average transaction deposit balances, which include interest-bearing and noninterest bearing checking accounts, increased an annualized 2% over the prior quarter and currently represent 35% of the company's deposit balances, up from 31% a year ago.
Operating revenues increased 1% in the third quarter of 2013 compared to the prior quarter. Net interest income increased 3% in the third quarter compared to the prior quarter. Net interest margin was 3.40%, as compared to 3.36% in the second quarter of 2013. Noninterest income decreased $4.1 million or 4% from the prior quarter primarily due to lower mortgage banking revenues.
The provision for loan losses on originated loans totaled $25.4 million in the third quarter of 2013, including $12.5 million to support loan growth and $12.9 million to cover net charge-offs during the quarter. At September 30, 2013, nonperforming originated loans comprised 0.89% of originated loans, which equaled a 13 basis point improvement from the prior quarter. Net charge-offs equaled 33 basis points of average originated loans, consistent with the second quarter.
In the third quarter of 2013, the company continued to generate positive operating leverage, as operating revenues increased 1% and operating expenses decreased 2% relative to the second quarter.
| Reported Results (GAAP) | Q3 2013 | Q2 2013 | Q3 2012 |
| Net interest income | $277.5 | $269.4 | $269.6 |
| Provision for credit losses | 27.6 | 25.2 | 22.2 |
| Noninterest income | 91.4 | 95.5 | 102.2 |
| Noninterest expense | 231.2 | 235.2 | 266.5 |
| Net income | 79.1 | 71.1 | 58.4 |
| Preferred stock dividend | 7.5 | 7.5 | 7.5 |
| Net income available to common shareholders | 71.6 | 63.6 | 50.8 |
| Weighted average diluted shares outstanding | 350.9 | 350.4 | 349.4 |
| Earnings per diluted share | $0.20 | $0.18 | $0.14 |
| All amounts in millions except earnings per diluted share. | |||
"During the third quarter, we continued to generate strong loan growth despite an intensifying competitive landscape, while adhering to our prudent underwriting standards, " said Gregory W. Norwood, Chief Financial Officer. "Net interest income benefitted from the continuation of strong balance sheet growth as well as certain favorable adjustments in our collateralized mortgage obligations book related to the rapid increase in mortgage rates which, in turn, negatively impacted mortgage banking revenues."
Loans
Average total loans increased 10% annualized from the prior quarter, driven by strong growth in the company's commercial lending businesses, particularly commercial real estate (CRE), and as well as sustained momentum in the company's indirect auto business.
Average CRE loans increased 9% annualized to $7.6 billion compared to the second quarter of 2013. Commercial & Industrial (C&I) loans averaged $5.2 billion, representing a 4% annualized increase over the prior quarter. Average commercial loans in the company's New England and Eastern Pennsylvania markets increased at double-digit annualized growth rates of 13% and 10%, respectively.
Average indirect auto loan balances increased $280 million to $1.2 billion. During the third quarter, indirect auto originations totaled $379 million at an average customer FICO score of 753 and yielded 3.1%, net of dealer reserve. Average residential real estate loans declined by $32 million, or 4% annualized reflecting elevated prepayment levels. Home equity balances increased 3% annualized from the prior quarter.
Deposits
The company continued to focus its efforts to grow its core customer base, re-position its account mix and lower its deposit costs. Average transaction deposit balances, which include interest-bearing and noninterest bearing checking accounts, increased an annualized 2% over the prior quarter and currently represent 35% of the company's deposit balances, up from 31% a year ago. The average cost of interest-bearing deposits of 0.23% was unchanged from the prior quarter.
Average noninterest-bearing checking deposits increased 6% annualized compared to the prior quarter, driven by seasonal strength in commercial account balances. Interest-bearing checking balances averaged $4.5 billion and decreased an annualized 2% from the second quarter.
Money market and time deposit balances declined 9% and 8% annualized, respectively, driven by the company's continued pricing actions.
In response to changing consumer banking behaviors, First Niagara continues to invest in enhancing its online, mobile and telephonic banking capabilities for retail and small business customers, while continuing to transform its branch network and in-branch experience.
Net Interest Income
Third quarter 2013 net interest income increased 3% from the prior quarter to $278 million and was driven by a 3% annualized increase in average earning assets together with a four basis points improvement in the net interest margin to 3.40%. Growth in average earning assets reflected continued strong loan growth which was moderated by lower investment securities balances. Average investment securities declined 9% or $264 million from the prior quarter reflecting the planned rotation of such securities into more profitable loans.
The four basis point increase in net interest margin in the third quarter of 2013 reflected the benefits of reinvestment of cash flows from lower-yielding investment securities into higher yielding loans and securities as well as lower premium amortization on the company's residential mortgage backed securities (RMBS) portfolio. These benefits were partially offset by continued compression of loan yields from prepayments and reinvestments at current market rates.
In the third quarter, premium amortization on the RMBS portfolio was $6 million, net of a $1.8 million retrospective adjustment to reflect prepayment speeds that were slower than the company's previous assessment. The premium amortization on the RMBS portfolio in the second quarter of 2013 was $11 million.
Credit Quality
At September 30, 2013, the allowance for loan losses was $198.0 million, compared to $183.7 million at June 30, 2013. Nonperforming assets to total assets were 0.53%, up only modestly from the prior quarter. A decrease in nonperforming originated loans was offset by transfer of three acquired loans that were previously designated as loans 90 days past due but accruing to other real estate owned (OREO) assets.
Information for both the originated and acquired portfolios follows.
| Q3 2013 | Q2 2013 | |||||
| $ in millions | Originated | Acquired | Total | Originated | Acquired | Total |
| Provision for loan losses* | $ 25.4 | $ 1.8 | $ 27.2 | $ 23.9 | $ 0.9 | $ 24.8 |
| Net charge-offs | 12.9 | 0.1 | 13.0 | 12.2 | 0.9 | 13.1 |
| NCOs/ Avg Loans | 0.33% | 0.01% | 0.25% | 0.33% | 0.06% | 0.26% |
| Total loans** | $ 16,212 | $ 5,007 | $ 21,089 | $ 15,102 | $ 5,581 | $ 20,543 |
| (*) Excludes provision for unfunded commitments of $0.4 million each in 3Q13 and 2Q13 | ||||||
| (**) Acquired loans before associated credit discount; see accompanying tables for further information | ||||||
Originated loans
The provision for loan losses on originated loans totaled $25.4 million, compared to $23.9 million in the prior quarter. This provision included $12.5 million to support sequential originated loan growth of $1.1 billion, compared to $11.7 million in the prior quarter that supported $1.0 billion of originated loan growth. Net charge-offs equaled $12.9 million or 33 basis points of average originated loans in the third quarter of 2013, consistent with the second quarter.
At September 30, 2013, nonperforming originated loans comprised 0.89% of originated loans, compared to 1.02% at June 30, 2013. Nonperforming originated loan balances declined 6% from the prior quarter in part driven by paydowns.
At September 30, 2013, the allowance for loan losses on originated loans totaled $195.0 million or 1.20% of such loans, compared to $182.5 million or 1.21% of loans at June 30, 2013.
Acquired loans
The provision for losses on acquired loans totaled $1.8 million, up from $0.9 million in the prior quarter. Net charge-offs on those portfolios totaled $0.1 million during the quarter, compared to $0.9 million in the prior period. At September 30, 2013, the allowance for loan losses on acquired loans totaled $3.0 million, compared to $1.3 million at June 30, 2013. Acquired nonperforming loans totaled $30.4 million, compared to $27.6 million at the end of the prior quarter. At September 30, 2013, remaining credit marks available to absorb losses on a pool-by-pool basis totaled $129 million.
Fee Income
Third quarter 2013 noninterest income of $91.4 million decreased 4% or $4.1 million compared to the prior quarter driven exclusively by weakness in mortgage banking gain-on-sale revenues which was partially offset by increases in most other fee income categories.
Mortgage banking revenues declined $4.6 million, or 67%, from the second quarter, driven by decreases in locked application volumes and gain-on-sale margins. Wealth management revenue increased 2% from the second quarter reflecting the continued demand in the market place for fixed annuity products. Deposit service charges increased 2% from the prior quarter and were driven by a seasonal increase in NSF incidence as well as sustained higher collection rates. Insurance commissions and merchant and card fees both increased modestly from the second quarter. Other income decreased $1.4 million from the second quarter.
Noninterest Expense
Third quarter noninterest expenses were $231.2 million, 2% lower than the prior quarter. Salaries and benefit expenses declined by $1.3 million from the prior quarter driven primarily by a decrease in revenue-dependent variable compensation expenses. Occupancy and equipment expenses declined by $1.9 million from the second quarter due in large part to expenses related to consolidation of branches in the prior period. The amortization of intangibles decreased $3.1 million from the prior quarter primarily reflecting the decline in amortization of the HSBC transaction-related core deposit intangible.
In the third quarter of 2013, the efficiency ratio improved to 62.7% from 64.4% in the prior quarter and reflected the positive operating leverage achieved.
Capital
At September 30, 2013, the company's estimated consolidated Total Risk Based capital and Tier 1 Common Risk Based capital ratios were 11.4% and 7.7% respectively. 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 420 branches, $37 billion in assets, $27 billion in deposits, and approximately 5,800 employees providing financial services to individuals, families and businesses across New York, Pennsylvania, Connecticut and Massachusetts. For more information, visit www.firstniagara.com.
Investor Call
A conference call will be held at 10:00 a.m. Eastern Time on Friday, October 18, 2013 to discuss the company's financial results. Those wishing to participate in the call may dial toll-free 1-888-968-3512 with the passcode: FNFG. Presentation slides will be used during the earnings conference call and are available under the investor relations tab of our website at www.firstniagara.com. A replay of the call will be available until November 1, 2013 by dialing 1-866-451-8971, passcode: 532337.
Non-GAAP Measures - This news release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). The company believes that non-GAAP financial measures provide a meaningful comparison of the underlying operational performance of the company, and facilitate investors' assessments of business and performance trends in comparison to others in the financial services industry. In addition, the company believes the exclusion of these non-operating items enables management to perform a more effective evaluation and comparison of the company's results and to assess performance in relation to the company's ongoing operations. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP disclosures are used in this news release, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document.
Forward-Looking Statements - This press release contains forward-looking statements with respect to the financial condition and results of operations of First Niagara Financial Group, Inc. including, without limitations, statements relating to the earnings outlook of the company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans that could result from an economic downturn; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with an increase in commercial real estate and business loans and non-performing loans.
| First Niagara Financial Group, Inc. | ||||||||||||||||
| Income Statement Highlights -- Reported Basis | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| 2013 | 2012 | Nine months ended | ||||||||||||||
|
Third Quarter |
Second Quarter |
First Quarter |
Fourth Quarter |
Third Quarter |
Second Quarter |
September 30, 2013 |
September 30, 2012 |
|||||||||
| Interest income: | ||||||||||||||||
| Loans and leases | $ 214,746 | $ 209,970 | $ 206,640 | $ 212,035 | $ 211,767 | $ 200,725 | $ 631,356 | $ 601,877 | ||||||||
| Investment securities and other | 91,996 | 88,110 | 88,961 | 71,564 | 90,101 | 99,116 | 269,067 | 290,612 | ||||||||
| Total interest income | 306,742 | 298,080 | 295,601 | 283,599 | 301,868 | 299,841 | 900,423 | 892,489 | ||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 12,931 | 12,967 | 14,277 | 16,902 | 18,358 | 16,391 | 40,175 | 49,747 | ||||||||
| Borrowings | 16,271 | 15,670 | 15,194 | 14,411 | 13,905 | 24,437 | 47,135 | 71,753 | ||||||||
| Total interest expense | 29,202 | 28,637 | 29,471 | 31,313 | 32,263 | 40,828 | 87,310 | 121,500 | ||||||||
| Net interest income | 277,540 | 269,443 | 266,130 | 252,286 | 269,605 | 259,013 | 813,113 | 770,989 | ||||||||
| Provision for credit losses | 27,600 | 25,200 | 20,200 | 22,000 | 22,200 | 28,100 | 73,000 | 70,300 | ||||||||
| Net interest income after provision | 249,940 | 244,243 | 245,930 | 230,286 | 247,405 | 230,913 | 740,113 | 700,689 | ||||||||
| Noninterest income: | ||||||||||||||||
| Deposit service charges | 27,115 | 26,482 | 24,800 | 26,345 | 26,422 | 21,433 | 78,397 | 64,892 | ||||||||
| Insurance commissions | 17,854 | 17,692 | 16,355 | 15,497 | 18,764 | 17,072 | 51,901 | 52,669 | ||||||||
| Merchant and card fees | 12,464 | 12,380 | 11,298 | 11,945 | 12,014 | 9,271 | 36,142 | 26,813 | ||||||||
| Wealth management services | 15,189 | 14,945 | 12,845 | 12,000 | 11,069 | 9,207 | 42,979 | 29,315 | ||||||||
| Mortgage banking | 2,268 | 6,882 | 6,424 | 8,060 | 10,974 | 7,174 | 15,574 | 23,797 | ||||||||
| Capital markets income | 5,058 | 5,002 | 6,031 | 7,098 | 6,381 | 6,831 | 16,091 | 19,751 | ||||||||
| Lending and leasing | 4,886 | 4,534 | 3,906 | 3,739 | 3,730 | 4,245 | 13,326 | 11,098 | ||||||||
| Bank owned life insurance | 3,725 | 3,321 | 3,467 | 3,021 | 3,449 | 3,848 | 10,513 | 10,684 | ||||||||
| Other income | 2,863 | 4,308 | 4,186 | 4,116 | 9,400 | 16,517 | 11,357 | 28,690 | ||||||||
| Total noninterest income | 91,422 | 95,546 | 89,312 | 91,821 | 102,203 | 95,598 | 276,280 | 267,709 | ||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and benefits | 115,034 | 116,305 | 115,790 | 111,026 | 115,484 | 104,507 | 347,129 | 316,468 | ||||||||
| Occupancy and equipment | 26,582 | 28,506 | 28,045 | 27,609 | 25,694 | 24,089 | 83,133 | 71,800 | ||||||||
| Technology and communications | 28,999 | 29,603 | 27,113 | 28,257 | 28,110 | 24,434 | 85,715 | 72,257 | ||||||||
| Marketing and advertising | 5,822 | 5,450 | 4,346 | 9,292 | 8,954 | 6,676 | 15,618 | 22,393 | ||||||||
| Professional services | 9,820 | 9,782 | 9,603 | 11,163 | 11,193 | 9,263 | 29,205 | 29,351 | ||||||||
| Amortization of intangibles | 7,702 | 10,850 | 14,119 | 14,224 | 14,506 | 9,839 | 32,671 | 30,811 | ||||||||
| FDIC premiums | 9,351 | 9,348 | 8,901 | 9,158 | 8,850 | 10,552 | 27,600 | 25,535 | ||||||||
| Merger and acquisition integration expenses | -- | -- | -- | 3,678 | 29,404 | 131,460 | -- | 173,834 | ||||||||
| Restructuring charges | -- | -- | -- | -- | -- | 3,750 | -- | 6,453 | ||||||||
| Other expense | 27,883 | 25,326 | 29,749 | 24,377 | 24,347 | 21,069 | 82,958 | 63,457 | ||||||||
| Total noninterest expense | 231,193 | 235,170 | 237,666 | 238,784 | 266,542 | 345,639 | 704,029 | 812,359 | ||||||||
| Income (loss) before income tax | 110,169 | 104,619 | 97,576 | 83,323 | 83,066 | (19,128) | 312,364 | 156,039 | ||||||||
| Income tax expense (benefit) | 31,026 | 33,485 | 30,291 | 22,226 | 24,682 | (8,204) | 94,802 | 48,714 | ||||||||
| Net income (loss) | 79,143 | 71,134 | 67,285 | 61,097 | 58,384 | (10,924) | 217,562 | 107,325 | ||||||||
| Preferred stock dividend | 7,547 | 7,547 | 7,547 | 7,547 | 7,547 | 7,547 | 22,641 | 20,209 | ||||||||
| Net income (loss) available to common stockholders | $ 71,596 | $ 63,587 | $ 59,738 | $ 53,550 | $ 50,837 | $ (18,471) | $ 194,921 | $ 87,116 | ||||||||
| Financial Ratios: | ||||||||||||||||
| Earnings (loss) per basic share | $ 0.20 | $ 0.18 | $ 0.17 | $ 0.15 | $ 0.15 | $ (0.05) | $ 0.55 | $ 0.25 | ||||||||
| Earnings (loss) per diluted share | 0.20 | 0.18 | 0.17 | 0.15 | 0.14 | (0.05) | 0.55 | 0.25 | ||||||||
| Weighted average shares outstanding - basic(1) | 349,653 | 349,542 | 349,278 | 349,071 | 349,001 | 348,941 | 349,492 | 348,956 | ||||||||
| Weighted average shares outstanding - diluted(1) | 350,896 | 350,384 | 349,999 | 349,663 | 349,371 | 348,941 | 350,368 | 349,248 | ||||||||
| Net revenue(2) | $ 368,962 | $ 364,989 | $ 355,442 | $ 344,107 | $ 371,808 | $ 354,611 | $ 1,089,393 | $ 1,038,698 | ||||||||
| Noninterest income as a percentage of net revenue(2) | 24.78% | 26.18% | 25.13% | 26.68% | 27.49% | 26.96% | 25.36% | 25.77% | ||||||||
| Pre-tax, pre-provision income(3) | $ 137,769 | $ 129,819 | $ 117,776 | $ 105,323 | $ 105,266 | $ 8,972 | $ 385,364 | $ 226,339 | ||||||||
| Pre-tax, pre-provision income per diluted share(3) | $ 0.39 | $ 0.37 | $ 0.34 | $ 0.30 | $ 0.30 | $ 0.03 | $ 1.10 | $ 0.65 | ||||||||
| Pre-tax, pre-provision return on average assets(3) | 1.47% | 1.41% | 1.30% | 1.15% | 1.19% | 0.10% | 1.39% | 0.86% | ||||||||
| Net interest margin(4) | 3.40% | 3.36% | 3.39% | 3.22% | 3.54% | 3.26% | 3.39% | 3.30% | ||||||||
| Interest yield on average loans(4) | 4.14% | 4.19% | 4.25% | 4.39% | 4.47% | 4.59% | 4.19% | 4.56% | ||||||||
| Rate paid on interest-bearing liabilities | 0.43% | 0.43% | 0.44% | 0.48% | 0.51% | 0.61% | 0.44% | 0.63% | ||||||||
| Efficiency ratio | 62.66% | 64.43% | 66.86% | 69.39% | 71.69% | 97.47% | 64.63% | 78.21% | ||||||||
| Expenses as a percentage of average loans and deposits | 1.94% | 1.98% | 2.01% | 2.03% | 2.29% | 3.37% | 1.98% | 2.64% | ||||||||
| Effective tax rate | 28.2% | 32.0% | 31.0% | 26.7% | 29.7% | 42.9% | 30.3% | 31.2% | ||||||||
| Return on average assets(5) | 0.85 % | 0.77 % | 0.74 % | 0.67% | 0.66% | (0.12)% | 0.79% | 0.41% | ||||||||
| Return on average equity(5) | 6.37 % | 5.72 % | 5.50 % | 4.92% | 4.77% | (0.90)% | 5.86% | 2.95% | ||||||||
| Return on average tangible equity(3)(5) | 13.20 % | 11.75 % | 11.62 % | 10.45% | 10.34% | (1.64)% | 12.19% | 5.40% | ||||||||
| Return on average common equity | 6.18 % | 5.48 % | 5.24 % | 4.62% | 4.46% | (1.64)% | 5.64% | 2.57% | ||||||||
| Return on average tangible common equity(3) | 13.92 % | 12.21 % | 12.05 % | 10.72% | 10.60% | (3.18)% | 12.73% | 5.02% | ||||||||
| (1) Share count excludes unallocated ESOP shares and unvested restricted stock shares. | ||||||||||||||||
| (2) Net revenue is comprised of net interest income and noninterest income. | ||||||||||||||||
| (3) The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail. | ||||||||||||||||
| (4) Yields and rates calculated on a tax equivalent basis. | ||||||||||||||||
| (5) Return used to calculate ratio excludes preferred stock dividend. | ||||||||||||||||
| First Niagara Financial Group, Inc. | ||||||||||||
| Period End Balance Sheet | ||||||||||||
| (in thousands) | ||||||||||||
| 2013 | 2012 | |||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||
| Cash and cash equivalents | $ 558,086 | $ 552,210 | $ 424,176 | $ 430,862 | $ 447,087 | $ 488,227 | ||||||
| Investment securities: | ||||||||||||
| Available for sale | 7,609,676 | 7,916,353 | 7,876,160 | 10,993,605 | 10,579,970 | 9,937,271 | ||||||
| Held to maturity | 3,841,700 | 3,856,960 | 4,218,687 | 1,299,806 | 1,387,763 | 1,463,872 | ||||||
| FHLB and FRB common stock | 437,534 | 429,740 | 401,373 | 420,277 | 373,311 | 329,555 | ||||||
| Total investment securities | 11,888,910 | 12,203,053 | 12,496,220 | 12,713,688 | 12,341,044 | 11,730,698 | ||||||
| Loans held for sale | 80,468 | 118,104 | 126,389 | 154,745 | 117,375 | 101,596 | ||||||
| Loans and leases: | ||||||||||||
| Commercial: | ||||||||||||
| Real estate | 7,697,407 | 7,482,375 | 7,295,544 | 7,093,193 | 6,835,971 | 6,710,009 | ||||||
| Business | 5,204,672 | 5,165,606 | 5,044,738 | 4,953,323 | 4,682,154 | 4,514,537 | ||||||
| Total commercial loans | 12,902,079 | 12,647,981 | 12,340,282 | 12,046,516 | 11,518,125 | 11,224,546 | ||||||
| Consumer: | ||||||||||||
| Residential real estate | 3,519,233 | 3,558,274 | 3,614,912 | 3,761,567 | 3,870,756 | 4,037,045 | ||||||
| Home equity | 2,706,603 | 2,670,672 | 2,646,645 | 2,651,891 | 2,661,429 | 2,683,236 | ||||||
| Indirect auto | 1,339,449 | 1,049,763 | 818,401 | 601,456 | 419,258 | 185,774 | ||||||
| Credit cards | 311,600 | 303,455 | 298,310 | 314,973 | 308,387 | 304,368 | ||||||
| Other consumer | 310,107 | 313,037 | 316,669 | 333,609 | 328,571 | 328,547 | ||||||
| Total consumer loans | 8,186,992 | 7,895,201 | 7,694,937 | 7,663,496 | 7,588,401 | 7,538,970 | ||||||
| Total loans and leases | 21,089,071 | 20,543,182 | 20,035,219 | 19,710,012 | 19,106,526 | 18,763,516 | ||||||
| Allowance for loan losses | 197,953 | 183,708 | 172,002 | 162,522 | 149,933 | 138,516 | ||||||
| Loans and leases, net | 20,891,118 | 20,359,474 | 19,863,217 | 19,547,490 | 18,956,593 | 18,625,000 | ||||||
| Bank owned life insurance | 413,555 | 410,182 | 407,419 | 404,321 | 401,211 | 397,739 | ||||||
| Goodwill and other intangibles | 2,549,931 | 2,557,560 | 2,567,681 | 2,617,810 | 2,626,625 | 2,631,605 | ||||||
| Other assets | 958,473 | 949,144 | 959,459 | 937,316 | 983,999 | 1,130,891 | ||||||
| Total assets | $ 37,340,541 | $ 37,149,727 | $ 36,844,561 | $ 36,806,232 | $ 35,873,934 | $ 35,105,756 | ||||||
| Deposits: | ||||||||||||
| Savings accounts | $ 3,695,221 | $ 3,878,053 | $ 3,915,836 | $ 3,887,587 | $ 3,941,528 | $ 4,103,773 | ||||||
| Interest-bearing checking | 4,637,807 | 4,499,963 | 4,534,444 | 4,450,970 | 4,090,322 | 3,887,568 | ||||||
| Money market deposits | 9,905,341 | 10,013,996 | 10,493,243 | 10,581,137 | 10,801,280 | 10,919,766 | ||||||
| Noninterest-bearing deposits | 4,968,501 | 4,845,835 | 4,803,835 | 4,643,580 | 4,658,374 | 4,774,764 | ||||||
| Certificates of deposit | 3,762,132 | 3,911,989 | 3,985,702 | 4,113,257 | 4,206,192 | 4,211,116 | ||||||
| Total deposits | 26,969,002 | 27,149,836 | 27,733,060 | 27,676,531 | 27,697,696 | 27,896,987 | ||||||
| Short-term borrowings | 4,169,416 | 3,698,279 | 2,928,929 | 2,983,718 | 1,995,610 | 958,044 | ||||||
| Long-term borrowings | 732,547 | 732,598 | 732,510 | 732,425 | 732,339 | 732,263 | ||||||
| Other liabilities | 531,379 | 666,270 | 503,389 | 487,000 | 532,868 | 700,249 | ||||||
| Total liabilities | 32,402,344 | 32,246,983 | 31,897,888 | 31,879,674 | 30,958,513 | 30,287,543 | ||||||
| Preferred stockholders' equity | 338,002 | 338,002 | 338,002 | 338,002 | 338,002 | 338,002 | ||||||
| Common stockholders' equity | 4,600,195 | 4,564,742 | 4,608,671 | 4,588,556 | 4,577,419 | 4,480,211 | ||||||
| Total stockholders' equity | 4,938,197 | 4,902,744 | 4,946,673 | 4,926,558 | 4,915,421 | 4,818,213 | ||||||
| Total liabilities and stockholders' equity | $ 37,340,541 | $ 37,149,727 | $ 36,844,561 | $ 36,806,232 | $ 35,873,934 | $ 35,105,756 | ||||||
| Selected balance sheet information: | ||||||||||||
| Total interest-earning assets(1) | $ 33,039,023 | $ 32,906,363 | $ 32,524,313 | $ 32,321,964 | $ 31,316,470 | $ 30,403,035 | ||||||
| Total interest-bearing liabilities | 26,902,465 | 26,734,878 | 26,590,664 | 26,749,094 | 25,767,271 | 24,812,530 | ||||||
| Net interest-earning assets | $ 6,136,558 | $ 6,171,485 | $ 5,933,649 | $ 5,572,870 | $ 5,549,199 | $ 5,590,505 | ||||||
| Tangible common equity(2) | $ 2,050,264 | $ 2,007,182 | $ 2,040,990 | $ 1,970,746 | $ 1,950,794 | 1,848,606 | ||||||
| Unrealized gain on available for sale securities, net of tax(3) | 76,686 | 83,898 | 160,942 | 206,733 | 204,347 | 133,430 | ||||||
| Total core deposits | $ 23,206,870 | $ 23,237,847 | $ 23,747,358 | $ 23,563,274 | $ 23,491,504 | $ 23,685,871 | ||||||
| Originated loans(4) | $ 16,211,505 | $ 15,102,336 | $ 14,100,190 | $ 13,372,357 | $ 12,232,568 | $ 11,392,158 | ||||||
| Acquired loans(5) | 5,006,753 | 5,581,651 | 6,083,912 | 6,513,636 | 7,085,839 | 7,600,213 | ||||||
| Credit related discount on acquired loans(6) | (129,187) | (140,805) | (148,883) | (175,981) | (211,881) | (228,855) | ||||||
| Total Loans | $ 21,089,071 | $ 20,543,182 | $ 20,035,219 | $ 19,710,012 | $ 19,106,526 | $ 18,763,516 | ||||||
| (1) Includes interest bearing cash and cash equivalents, investment securities at amortized cost, loans held for sale, and total loans and leases. | ||||||||||||
| (2) The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail. | ||||||||||||
| (3) 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) Represents the carrying value of acquired loans plus the principal not expected to be collected. | ||||||||||||
| (6) Represent principal on acquired loans not expected to be collected. | ||||||||||||
| First Niagara Financial Group, Inc. | ||||||||||||||||||||||||||||||
| Average Balance Sheet and Related Tax Equivalent Yields & Rates | ||||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||
| For the three months ended | Nine months ended | |||||||||||||||||||||||||||||
| September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||
| Average Balances | Interest(1) | Yields and Rates(1) |
Average Balances |
Interest(1) | Yields and Rates(1) | Average Balances | Interest(1) | Yields and Rates(1) | Average Balances | Interest(1) | Yields and Rates(1) | Average Balances | Interest(1) | Yields and Rates(1)(2) | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||
| Loans and leases(3) | ||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||
| Real estate | $ 7,551 | $ 80 | 4.16% | $ 7,376 | $ 79 | 4.22% | $ 6,783 | $ 80 | 4.60% | $ 7,370 | $ 235 | 4.21% | $ 6,529 | $ 239 | 4.81% | |||||||||||||||
| Business | 5,163 | 48 | 3.64 | 5,112 | 47 | 3.66 | 4,609 | 45 | 3.81 | 5,092 | 142 | 3.68 | 4,274 | 129 | 3.96 | |||||||||||||||
| Total commercial loans | 12,714 | 128 | 3.95 | 12,488 | 126 | 3.99 | 11,392 | 125 | 4.28 | 12,462 | 377 | 3.99 | 10,803 | 368 | 4.48 | |||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||
| Residential real estate | 3,538 | 35 | 3.91 | 3,570 | 35 | 3.94 | 3,962 | 40 | 4.03 | 3,599 | 107 | 3.95 | 3,957 | 123 | 4.13 | |||||||||||||||
| Home equity | 2,683 | 28 | 4.17 | 2,661 | 28 | 4.25 | 2,672 | 30 | 4.42 | 2,664 | 84 | 4.24 | 2,415 | 80 | 4.42 | |||||||||||||||
| Indirect auto | 1,207 | 9 | 3.09 | 927 | 7 | 3.18 | 301 | 3 | 3.64 | 950 | 23 | 3.17 | 131 | 4 | 3.86 | |||||||||||||||
| Credit cards | 309 | 9 | 12.02 | 302 | 8 | 10.96 | 308 | 9 | 11.31 | 305 | 25 | 11.14 | 165 | 14 | 11.31 | |||||||||||||||
| Other consumer | 313 | 7 | 8.48 | 313 | 7 | 8.42 | 329 | 7 | 8.80 | 318 | 20 | 8.36 | 285 | 17 | 8.07 | |||||||||||||||
| Total consumer loans | 8,050 | 88 | 4.35 | 7,773 | 86 | 4.41 | 7,572 | 88 | 4.64 | 7,836 | 259 | 4.42 | 6,953 | 237 | 4.56 | |||||||||||||||
| Total loans and leases | 20,764 | 216 | 4.14 | 20,261 | 212 | 4.19 | 18,964 | 213 | 4.47 | 20,298 | 636 | 4.19 | 17,756 | 605 | 4.56 | |||||||||||||||
| Residential MBS(2) | 5,515 | 37 | 2.68 | 5,496 | 33 | 2.40 | 5,677 | 40 | 2.81 | 5,500 | 104 | 2.53 | 7,729 | 166 | 2.86 | |||||||||||||||
| Commercial MBS | 1,810 | 17 | 3.68 | 1,881 | 16 | 3.44 | 1,895 | 19 | 3.93 | 1,868 | 51 | 3.63 | 1,822 | 54 | 3.95 | |||||||||||||||
| Other investment securities (4) | 4,620 | 40 | 3.47 | 4,833 | 41 | 3.37 | 4,002 | 33 | 3.35 | 4,758 | 119 | 3.34 | 3,446 | 87 | 3.39 | |||||||||||||||
| Total securities, at amortized cost(2) | 11,945 | 94 | 3.14 | 12,210 | 90 | 2.94 | 11,574 | 92 | 3.18 | 12,126 | 274 | 3.02 | 12,997 | 307 | 3.15 | |||||||||||||||
| Money market and other investments | 157 | 1 | 2.27 | 171 | 1 | 1.85 | 201 | 1 | 1.39 | 189 | 2 | 1.74 | 274 | 2 | 1.05 | |||||||||||||||
| Total interest-earning assets(2) | 32,866 | $ 311 | 3.75% | 32,642 | $ 302 | 3.71% | 30,739 | $ 306 | 3.96% | 32,613 | $ 913 | 3.74% | 31,027 | $ 915 | 3.94% | |||||||||||||||
| Goodwill and other intangibles | 2,554 | 2,561 | 2,627 | 2,575 | 2,213 | |||||||||||||||||||||||||
| Other noninterest-earning assets | 1,673 | 1,780 | 1,938 | 1,774 | 1,737 | |||||||||||||||||||||||||
| Total assets | $ 37,093 | $ 36,983 | $ 35,304 | $ 36,962 | $ 34,977 | |||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||
| Savings accounts | $ 3,793 | $ 1 | 0.09% | $ 3,897 | $ 1 | 0.11% | $ 4,026 | $ 2 | 0.20% | $ 3,861 | $ 3 | 0.10% | $ 3,300 | $ 3 | 0.14% | |||||||||||||||
| Interest-bearing checking | 4,483 | -- | 0.04 | 4,504 | -- | 0.04 | 3,871 | 1 | 0.06 | 4,456 | 1 | 0.04 | 3,066 | 2 | 0.08 | |||||||||||||||
| Money market deposits | 9,959 | 5 | 0.20 | 10,178 | 5 | 0.20 | 10,899 | 8 | 0.29 | 10,257 | 16 | 0.21 | 9,071 | 19 | 0.28 | |||||||||||||||
| Certificates of deposit | 3,824 | 7 | 0.69 | 3,902 | 6 | 0.66 | 4,083 | 8 | 0.75 | 3,935 | 20 | 0.67 | 3,977 | 25 | 0.85 | |||||||||||||||
| Total interest bearing deposits | 22,059 | 13 | 0.23% | 22,481 | 13 | 0.23% | 22,879 | 19 | 0.32% | 22,509 | 40 | 0.24% | 19,414 | 50 | 0.34% | |||||||||||||||
| Borrowings | ||||||||||||||||||||||||||||||
| Short-term borrowings | 4,014 | 4 | 0.41% | 3,536 | 4 | 0.41% | 1,666 | 1 | 0.36% | 3,570 | 11 | 0.41% | 3,442 | 15 | 0.56% | |||||||||||||||
| Long-term borrowings | 733 | 12 | 6.55 | 733 | 12 | 6.62 | 732 | 12 | 6.74 | 732 | 36 | 6.63 | 2,825 | 57 | 2.70 | |||||||||||||||
| Total borrowings | 4,747 | 16 | 1.36 | 4,269 | 16 | 1.47 | 2,398 | 13 | 2.31 | 4,302 | 47 | 1.46 | 6,267 | 72 | 1.53 | |||||||||||||||
| Total interest-bearing liabilities | 26,806 | $ 29 | 0.43% | 26,750 | $ 29 | 0.43% | 25,277 | $ 32 | 0.51% | 26,811 | $ 87 | 0.44% | 25,681 | $ 122 | 0.63% | |||||||||||||||
| Noninterest-bearing deposits | 4,787 | 4,711 | 4,618 | 4,657 | 3,838 | |||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 567 | 533 | 536 | 534 | 590 | |||||||||||||||||||||||||
| Total liabilities | 32,160 | 31,994 | 30,431 | 32,002 | 30,109 | |||||||||||||||||||||||||
| Total stockholders' equity | 4,933 | 4,989 | 4,873 | 4,960 | 4,868 | |||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ 37,093 | $ 36,983 | $ 35,304 | $ 36,962 | $ 34,977 | |||||||||||||||||||||||||
| Net interest income (FTE) | $ 282 | $ 274 | $ 274 | $ 826 | $ 793 | |||||||||||||||||||||||||
| Taxable Equivalent Adjustment(1) | 4 | 5 | 4 | 13 | 14 | |||||||||||||||||||||||||
| Total core deposits | $ 23,022 | $ 6 | 0.11% | $ 23,290 | $ 6 | 0.11% | $ 23,414 | $ 11 | 0.18% | $ 23,231 | $ 20 | 0.12% | $ 19,275 | $ 24 | 0.17% | |||||||||||||||
| Total deposits | 26,846 | 13 | 0.19% | 27,192 | 13 | 0.19% | 27,497 | 19 | 0.27% | 27,166 | 40 | 0.20% | 23,252 | 50 | 0.29% | |||||||||||||||
| Tax equivalent net interest rate spread(2) | 3.32% | 3.28% | 3.45% | 3.30% | 3.31% | |||||||||||||||||||||||||
| Tax equivalent net interest rate margin(2) | 3.40% | 3.36% | 3.54% | 3.39% | 3.42% | |||||||||||||||||||||||||
| (1) Tax equivalent interest income is calculated using a 35% tax rate. | ||||||||||||||||||||||||||||||
| (2) Amounts for the nine months ended September 30, 2012 exclude accelerated CMO adjustments of $8 million. The yields, including these adjustments, are: | ||||||||||||||||||||||||||||||
|
Nine months ended September 30, 2012 |
||||||||||||||||||||||||||||||
| Residential MBS | 2.72% | |||||||||||||||||||||||||||||
| Total securities, at amortized cost | 3.05% | |||||||||||||||||||||||||||||
| Total interest-earning assets | 3.90% | |||||||||||||||||||||||||||||
| Tax equivalent net interest rate spread | 3.27% | |||||||||||||||||||||||||||||
| Tax equivalent net interest rate margin | 3.38% | |||||||||||||||||||||||||||||
| (3) Includes nonaccrual loans. | ||||||||||||||||||||||||||||||
| (4) 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) | ||||||||||||||||
| 2013 | 2012 | Nine months ended | ||||||||||||||
|
Third Quarter |
Second Quarter |
First Quarter |
Fourth Quarter |
Third Quarter |
Second Quarter |
September 30, 2013 |
September 30, 2012 |
|||||||||
| Beginning balance | $ 183,708 | $ 172,002 | $ 162,522 | $ 149,933 | $ 138,516 | $ 126,746 | $ 162,522 | $ 120,100 | ||||||||
| Net loan (charge-offs) recoveries: | ||||||||||||||||
| Commercial real estate | $ 1,013 | $ (2,817) | $ (2,121) | $ (1,935) | $ (1,791) | $ (2,384) | $ (3,925) | $ (10,169) | ||||||||
| Commercial business | (9,694) | (7,175) | (4,902) | (3,385) | (6,077) | (10,958) | (21,771) | (21,178) | ||||||||
| Residential real estate | (137) | (291) | (427) | (658) | (396) | (155) | (855) | (1,671) | ||||||||
| Home equity | (322) | (905) | (613) | (673) | (401) | (1,536) | (1,840) | (3,098) | ||||||||
| Other consumer | (3,815) | (1,906) | (2,257) | (2,285) | (1,406) | (805) | (7,978) | (3,047) | ||||||||
| Total net loan charge-offs | $ (12,955) | $ (13,094) | $ (10,320) | $ (8,936) | $ (10,071) | $ (15,838) | $ (36,369) | $ (39,163) | ||||||||
| Provision for loan losses | 27,200 | 24,800 | 19,800 | 21,525 | 21,800 | 27,803 | 71,800 | 69,503 | ||||||||
| Allowance related to loans sold | -- | -- | -- | -- | (312) | (195) | -- | (507) | ||||||||
| Ending balance | $ 197,953 | $ 183,708 | $ 172,002 | $ 162,522 | $ 149,933 | $ 138,516 | $ 197,953 | $ 149,933 | ||||||||
| Supplemental information | ||||||||||||||||
| Allowance to loans | 0.94% | 0.89% | 0.86% | 0.82% | 0.78% | 0.74% | 0.94% | 0.78% | ||||||||
| Allowance for originated loans to originated loans(1) | 1.20% | 1.21% | 1.21% | 1.20% | 1.20% | 1.19% | 1.20% | 1.20% | ||||||||
| Net charge-offs (recoveries) to average loans (annualized) | ||||||||||||||||
| Commercial real estate | (0.05)% | 0.15% | 0.12% | 0.11% | 0.11% | 0.15% | 0.07% | 0.21% | ||||||||
| Commercial business | 0.75 % | 0.56% | 0.39% | 0.28% | 0.53% | 1.02% | 0.57% | 0.66% | ||||||||
| Total commercial loans | 0.27 % | 0.32% | 0.23% | 0.18% | 0.28% | 0.49% | 0.27% | 0.39% | ||||||||
| Residential real estate | 0.02 % | 0.03% | 0.05% | 0.07% | 0.04% | 0.02% | 0.03% | 0.06% | ||||||||
| Home equity | 0.05 % | 0.14% | 0.09% | 0.10% | 0.06% | 0.25% | 0.09% | 0.17% | ||||||||
| Other consumer | 0.83 % | 0.49% | 0.67% | 0.79% | 0.60% | 0.61% | 0.68% | 0.70% | ||||||||
| Total consumer loans | 0.22 % | 0.16% | 0.17% | 0.19% | 0.12% | 0.15% | 0.18% | 0.15% | ||||||||
| Total loans | 0.25 % | 0.26% | 0.21% | 0.18% | 0.21% | 0.36% | 0.24% | 0.29% | ||||||||
| Net charge-offs (recoveries) of originated loans to average originated loans (annualized)(1) | ||||||||||||||||
| Commercial real estate | (0.07)% | 0.14% | 0.10% | 0.07% | 0.12% | 0.18% | 0.05% | 0.15% | ||||||||
| Commercial business | 0.83 % | 0.64% | 0.45% | 0.33% | 0.64% | 1.25% | 0.64% | 0.82% | ||||||||
| Total commercial loans | 0.33 % | 0.36% | 0.26% | 0.19% | 0.36% | 0.66% | 0.32% | 0.45% | ||||||||
| Residential real estate | 0.03 % | 0.07% | 0.10% | 0.15% | 0.09% | 0.04% | 0.06% | 0.13% | ||||||||
| Home equity | 0.09 % | 0.26% | 0.19% | 0.21% | 0.13% | 0.51% | 0.18% | 0.35% | ||||||||
| Other consumer | 0.84 % | 0.51% | 0.64% | 0.94% | 0.59% | 0.81% | 0.68% | 0.76% | ||||||||
| Total consumer loans | 0.33 % | 0.27% | 0.28% | 0.35% | 0.18% | 0.28% | 0.29% | 0.27% | ||||||||
| Total loans | 0.33 % | 0.33% | 0.27% | 0.24% | 0.30% | 0.55% | 0.31% | 0.40% | ||||||||
| Nonperforming loans: | ||||||||||||||||
| Originated(1): | ||||||||||||||||
| Commercial real estate | $ 51,302 | $ 59,624 | $ 49,953 | $ 50,848 | $ 46,413 | $ 46,881 | $ 51,302 | $ 46,413 | ||||||||
| Commercial business | 35,854 | 44,658 | 47,523 | 47,066 | 37,375 | 30,714 | 35,854 | 37,375 | ||||||||
| Residential real estate | 31,312 | 29,667 | 28,455 | 27,192 | 21,377 | 23,058 | 31,312 | 21,377 | ||||||||
| Home equity | 15,709 | 14,601 | 14,270 | 14,233 | 8,084 | 8,119 | 15,709 | 8,084 | ||||||||
| Other consumer | 10,667 | 6,094 | 5,444 | 3,737 | 938 | 926 | 10,667 | 938 | ||||||||
| Total originated nonperforming loans | 144,844 | 154,644 | 145,645 | 143,076 | 114,187 | 109,698 | 144,844 | 114,187 | ||||||||
| Total acquired nonperforming loans(2) | 30,388 | 27,556 | 27,678 | 29,648 | 28,193 | 19,374 | 30,388 | 28,193 | ||||||||
| Total nonperforming loans | 175,232 | 182,200 | 173,323 | 172,724 | 142,380 | 129,072 | 175,232 | 142,380 | ||||||||
| Real estate owned | 24,262 | 8,144 | 10,816 | 10,114 | 9,669 | 10,632 | 24,262 | 9,669 | ||||||||
| Total nonperforming assets | $ 199,494 | $ 190,344 | $ 184,139 | $ 182,838 | $ 152,049 | $ 139,704 | $ 199,494 | $ 152,049 | ||||||||
| Accruing troubled debt restructurings (TDR) | $ 69,877 | $ 69,892 | $ 64,311 | $ 46,280 | $ 55,732 | $ 42,140 | $ 69,877 | $ 55,732 | ||||||||
| Loans 90 days past due still accruing(3) | 136,248 | 167,560 | 172,062 | 171,568 | 145,323 | 125,668 | 136,248 | 145,323 | ||||||||
| Total classified loans(4) | 648,235 | 701,104 | 720,197 | 708,468 | 693,006 | 732,762 | 648,235 | 693,006 | ||||||||
| Total criticized loans(5) | $ 977,798 | $ 1,012,305 | $ 1,044,874 | $ 1,002,659 | $ 990,670 | $ 1,030,471 | $ 977,798 | $ 990,670 | ||||||||
| Total nonperforming loans to loans | 0.83% | 0.89% | 0.87% | 0.88% | 0.75% | 0.69% | 0.83% | 0.75% | ||||||||
| Total nonperforming originated loans to originated loans(1) | 0.89% | 1.02% | 1.03% | 1.07% | 0.93% | 0.96% | 0.89% | 0.93% | ||||||||
| Total nonperforming assets to loans and real estate owned | 0.94% | 0.93% | 0.92% | 0.93% | 0.80% | 0.74% | 0.94% | 0.80% | ||||||||
| Total nonperforming assets to assets | 0.53% | 0.51% | 0.50% | 0.50% | 0.42% | 0.40% | 0.53% | 0.42% | ||||||||
| Allowance to nonperforming loans | 113.0% | 100.8% | 99.2% | 94.1% | 105.3% | 107.3% | 113.0% | 105.3% | ||||||||
| Originated loans(1) | $ 16,211,505 | $ 15,102,336 | $ 14,100,190 | $ 13,372,357 | $ 12,232,568 | $ 11,392,158 | $ 16,211,505 | $ 12,232,568 | ||||||||
| Acquired loans(6) | 5,006,753 | 5,581,651 | 6,083,912 | 6,513,636 | 7,085,839 | 7,600,213 | 5,006,753 | 7,085,839 | ||||||||
| Credit related discount on acquired loans(7) | (129,187) | (140,805) | (148,883) | (175,981) | (211,881) | (228,855) | (129,187) | (211,881) | ||||||||
| Total Loans | $ 21,089,071 | $ 20,543,182 | $ 20,035,219 | $ 19,710,012 | $ 19,106,526 | $ 18,763,516 | $ 21,089,071 | $ 19,106,526 | ||||||||
| (1) Originated loans represent total loans excluding acquired loans. | ||||||||||||||||
| (2) Nonperforming acquired loans include certain lines of credit that are considered nonaccruing. | ||||||||||||||||
| (3) 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. | ||||||||||||||||
| (4) 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 Qulaity Review" in our Annual Report on 10-K for the year ended December 31, 2012. | ||||||||||||||||
| (5) Criticized loans includes consumer loans when they are 90 days or more past due. Criticized loans include special mention, substandard, doubtful, and loss. | ||||||||||||||||
| (6) Represents the carrying value of acquired loans plus the principal not expected to be collected. | ||||||||||||||||
| (7) Represent principal on acquired loans not expected to be collected. | ||||||||||||||||
| First Niagara Financial Group, Inc. | ||||||||||||
| Key Statistics | ||||||||||||
| (Share counts in thousands) | ||||||||||||
| 2013 | 2012 | |||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||
| First Niagara Financial Group, Inc capital ratios: | ||||||||||||
| Tier 1 risk based capital | 9.45% | 9.41% | 9.45% | 9.29% | 9.51% | 9.40% | ||||||
| Tier 1 common capital(1) | 7.72% | 7.65% | 7.64% | 7.45% | 7.59% | 7.41% | ||||||
| Total risk based capital | 11.40% | 11.35% | 11.38% | 11.23% | 11.48% | 11.37% | ||||||
| Leverage | 7.14% | 7.01% | 6.92% | 6.75% | 6.83% | 6.32% | ||||||
| Equity to assets | 13.22% | 13.20% | 13.43% | 13.39% | 13.70% | 13.72% | ||||||
| Tangible common equity to tangible assets(1) | 5.89% | 5.80% | 5.95% | 5.77% | 5.87% | 5.69% | ||||||
| Total risk weighted assets(2) | $ 26,078 | $ 25,564 | $ 24,949 | $ 24,379 | $ 23,403 | $ 22,699 | ||||||
| First Niagara Bank, N.A capital ratios: | ||||||||||||
| Tier 1 risk based capital | 10.08% | 10.08% | 10.15% | 9.94% | 10.19% | 9.63% | ||||||
| Total risk based capital | 10.89% | 10.85% | 10.89% | 10.66% | 10.88% | 10.57% | ||||||
| Leverage | 7.61% | 7.50% | 7.43% | 7.23% | 7.32% | 6.48% | ||||||
| Total risk weighted assets(2) | $ 26,038 | $ 25,520 | $ 24,933 | $ 24,379 | $ 23,390 | $ 22,699 | ||||||
| Number of branches | 422 | 422 | 427 | 430 | 432 | 452 | ||||||
| Full time equivalent employees | 5,788 | 5,779 | 5,875 | 5,927 | 6,036 | 6,103 | ||||||
| Share information and per share metrics: | ||||||||||||
| Common shares outstanding | 353,973 | 353,932 | 353,008 | 352,621 | 352,632 | 352,665 | ||||||
| Preferred shares outstanding | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | ||||||
| Treasury shares | 12,029 | 12,070 | 12,994 | 13,381 | 13,370 | 13,337 | ||||||
| Market price (NASDAQ: FNFG): | $ 10.37 | $ 10.07 | $ 8.86 | $ 7.93 | $ 8.07 | $ 7.65 | ||||||
| Book value per common share(3) | 13.15 | 13.06 | 13.19 | 13.15 | 13.11 | 12.84 | ||||||
| Tangible book value per common share(1)(3) | 5.86 | 5.74 | 5.84 | 5.65 | 5.59 | 5.30 | ||||||
| Price/Book | 78.86% | 77.11% | 67.17% | 60.30% | 61.56% | 59.58% | ||||||
| Price/Tangible book(1) | 176.96% | 175.44% | 151.71% | 140.35% | 144.36% | 144.34% | ||||||
| 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 | 40.00% | 44.44% | 47.06% | 53.33% | 53.33% | N/M | ||||||
| Dividend yield (annualized) | 3.06% | 3.19% | 3.66% | 4.01% | 3.94% | 4.21% | ||||||
| N/M Not meaningful | ||||||||||||
| (1) 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. | ||||||||||||
| (2) Represents an estimate of total risk weighted assets as of September 30, 2013. All preceding quarters represent actual calculated balances. | ||||||||||||
| (3) Share count excludes unallocated ESOP shares and unvested restricted stock shares. | ||||||||||||
| First Niagara Financial Group, Inc. | ||||||||||||||||
| Appendix A - Non-GAAP Reconciliation | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| 2013 | 2012 | Nine months ended | ||||||||||||||
|
Third Quarter |
Second Quarter |
First Quarter |
Fourth Quarter |
Third Quarter |
Second Quarter |
September 30, 2013 |
September 30, 2012 |
|||||||||
| Financial ratios computed on an operating basis(1): | ||||||||||||||||
| Earnings per basic share | $ 0.20 | $ 0.18 | $ 0.17 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.55 | $ 0.56 | ||||||||
| Earnings per diluted share | 0.20 | 0.18 | 0.17 | 0.19 | 0.19 | 0.19 | 0.55 | 0.56 | ||||||||
| Weighted average shares outstanding - basic(2) | 349,653 | 349,542 | 349,278 | 349,071 | 349,001 | 348,941 | 349,492 | 348,956 | ||||||||
| Weighted average shares outstanding - diluted(2) | 350,896 | 350,384 | 349,999 | 349,663 | 349,371 | 348,941 | 350,368 | 349,248 | ||||||||
| Noninterest income as a percentage of net revenue(3) | 24.78% | 26.18% | 25.13% | 25.48% | 26.43% | 22.96% | 25.36% | 24.03% | ||||||||
| Pre-tax, pre-provision income | 137,769 | 129,819 | 117,776 | 125,281 | 129,333 | 136,645 | 385,364 | 393,752 | ||||||||
| Pre-tax, pre-provision income per diluted share | 0.39 | 0.37 | 0.34 | 0.36 | 0.37 | 0.39 | 1.10 | 1.13 | ||||||||
| Pre-tax, pre-provision return on average assets | 1.47% | 1.41% | 1.30% | 1.37% | 1.46% | 1.51% | 1.39% | 1.50% | ||||||||
| Net interest margin(4) | 3.40% | 3.36% | 3.39% | 3.42% | 3.54% | 3.37% | 3.39% | 3.42% | ||||||||
| Interest yield on average loans(4) | 4.14% | 4.19% | 4.25% | 4.39% | 4.47% | 4.59% | 4.19% | 4.56% | ||||||||
| Rate paid on interest-bearing liabilities(4) | 0.43% | 0.43% | 0.44% | 0.48% | 0.51% | 0.61% | 0.44% | 0.63% | ||||||||
| Efficiency ratio | 62.66% | 64.43% | 66.86% | 65.24% | 64.71% | 60.63% | 64.63% | 61.62% | ||||||||
| Effective tax rate | 28.2% | 32.0% | 31.0% | 27.0% | 30.9% | 33.5% | 30.3% | 33.1% | ||||||||
| Return on average assets | 0.85% | 0.77% | 0.74% | 0.83% | 0.83% | 0.80% | 0.79% | 0.83% | ||||||||
| Return on average equity | 6.37% | 5.72% | 5.50% | 6.06% | 6.04% | 5.95% | 5.86% | 5.93% | ||||||||
| Return on average tangible equity(5) | 13.20% | 11.75% | 11.62% | 12.89% | 13.11% | 10.86% | 12.19% | 10.88% | ||||||||
| Return on average common equity | 6.18% | 5.48% | 5.24% | 5.86% | 5.83% | 5.72% | 5.64% | 5.78% | ||||||||
| Return on average tangible common equity(6) | 13.92% | 12.21% | 12.05% | 13.57% | 13.86% | 11.13% | 12.73% | 11.30% | ||||||||
| Reconciliation of net interest income on operating basis to reported net interest income(1): | ||||||||||||||||
| Total net interest income on operating basis (Non-GAAP) | $ 277,540 | $ 269,443 | $ 266,130 | $ 268,566 | $ 269,605 | $ 267,371 | $ 813,113 | $ 779,347 | ||||||||
| Additional premium amortization on securities portfolio | -- | -- | -- | (16,280) | -- | (8,358) | -- | (8,358) | ||||||||
| Total reported net interest income (GAAP) | 277,540 | 269,443 | 266,130 | 252,286 | 269,605 | 259,013 | 813,113 | 770,989 | ||||||||
| Reconciliation of noninterest income on operating basis to reported noninterest income(1): | ||||||||||||||||
| Total noninterest income on operating basis (Non-GAAP) | $ 91,422 | $ 95,546 | $ 89,312 | $ 91,821 | $ 96,866 | $ 79,703 | $ 276,280 | $ 246,477 | ||||||||
| Gain on securities portfolio repositioning | -- | -- | -- | -- | 5,337 | 15,895 | -- | 21,232 | ||||||||
| Total reported noninterest income (GAAP) | 91,422 | 95,546 | 89,312 | 91,821 | 102,203 | 95,598 | 276,280 | 267,709 | ||||||||
| Reconciliation of noninterest expense on operating basis to reported noninterest expense(1): | ||||||||||||||||
| Total noninterest expense on operating basis (Non-GAAP) | $ 231,193 | $ 235,170 | $ 237,666 | $ 235,106 | $ 237,138 | $ 210,429 | $ 704,029 | $ 632,072 | ||||||||
| Merger and acquisition integration expenses | -- | -- | -- | 3,678 | 29,404 | 131,460 | -- | 173,834 | ||||||||
| Restructuring charges | -- | -- | -- | -- | -- | 3,750 | -- | 6,453 | ||||||||
| Total reported noninterest expense (GAAP) | $ 231,193 | $ 235,170 | $ 237,666 | $ 238,784 | $ 266,542 | $ 345,639 | $ 704,029 | $ 812,359 | ||||||||
| Reconciliation of net operating income to net income(1): | ||||||||||||||||
| Net operating income (Non-GAAP) | $ 79,143 | $ 71,134 | $ 67,285 | $ 75,358 | $ 74,027 | $ 72,188 | $ 217,562 | $ 216,268 | ||||||||
| Nonoperating income and expenses, net of tax: | ||||||||||||||||
| Additional premium amortization on securities portfolio | -- | -- | -- | 11,633 | -- | 5,558 | -- | 5,558 | ||||||||
| Gain on securities portfolio repositioning | -- | -- | -- | -- | (3,469) | (10,331) | -- | (13,800) | ||||||||
| Merger and acquisition integration expenses | -- | -- | -- | 2,628 | 19,112 | 85,448 | -- | 112,991 | ||||||||
| Restructuring charges | -- | -- | -- | -- | -- | 2,437 | -- | 4,194 | ||||||||
| Total nonoperating expenses, net of tax | -- | -- | -- | 14,261 | 15,643 | 83,112 | -- | 108,943 | ||||||||
| Net income (GAAP) | $ 79,143 | $ 71,134 | $ 67,285 | $ 61,097 | $ 58,384 | $ (10,924) | $ 217,562 | $ 107,325 | ||||||||
| 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) | $ 71,596 | $ 63,587 | $ 59,738 | $ 67,811 | $ 66,480 | $ 64,641 | $ 194,921 | $ 196,059 | ||||||||
| Nonoperating income and expenses, net of tax: | ||||||||||||||||
| Additional premium amortization on securities portfolio | -- | -- | -- | 11,633 | -- | 5,558 | -- | 5,558 | ||||||||
| Gain on securities portfolio repositioning | -- | -- | -- | -- | (3,469) | (10,331) | -- | (13,800) | ||||||||
| Merger and acquisition integration expenses | -- | -- | -- | 2,628 | 19,112 | 85,448 | -- | 112,991 | ||||||||
| Restructuring charges | -- | -- | -- | -- | -- | 2,437 | -- | 4,194 | ||||||||
| Total nonoperating income and expenses, net of tax | -- | -- | -- | 14,261 | 15,643 | 83,112 | -- | 108,943 | ||||||||
| Net income available to common stockholders (GAAP) | $ 71,596 | $ 63,587 | $ 59,738 | $ 53,550 | $ 50,837 | $ (18,471) | $ 194,921 | $ 87,116 | ||||||||
| Computation of pre-tax,pre-provision income: | ||||||||||||||||
| Net interest income | $ 277,540 | $ 269,443 | $ 266,130 | $ 252,286 | $ 269,605 | $ 259,013 | $ 813,113 | $ 770,989 | ||||||||
| Noninterest income | 91,422 | 95,546 | 89,312 | 91,821 | 102,203 | 95,598 | 276,280 | 267,709 | ||||||||
| Noninterest expense | (231,193) | (235,170) | (237,666) | (238,784) | (266,542) | (345,639) | (704,029) | (812,359) | ||||||||
| Pre-tax, pre-provision income (GAAP) | 137,769 | 129,819 | 117,776 | 105,323 | 105,266 | 8,972 | 385,364 | 226,339 | ||||||||
| Add back: non-operating premium amortization | -- | -- | -- | 16,280 | -- | 8,358 | -- | 8,358 | ||||||||
| Add back: non-operating noninterest expenses (1) | -- | -- | -- | 3,678 | 29,404 | 135,210 | -- | 180,287 | ||||||||
| Less: non-operating noninterest income (1) | -- | -- | -- | -- | (5,337) | (15,895) | -- | (21,232) | ||||||||
| Pre-tax, pre-provision income (Non-GAAP)(1) | $ 137,769 | $ 129,819 | $ 117,776 | $ 125,281 | $ 129,333 | $ 136,645 | $ 385,364 | $ 393,752 | ||||||||
| (1) Net interest income, noninterest income and 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) | ||||||||||||||||
| 2013 | 2012 | Nine months ended | ||||||||||||||
|
Third Quarter |
Second Quarter |
First Quarter |
Fourth Quarter |
Third Quarter |
Second Quarter |
September 30, 2013 |
September 30, 2012 |
|||||||||
| Computation of Ending Tangible Common Equity: | ||||||||||||||||
| Total stockholders' equity | $ 4,938,197 | $ 4,902,744 | $ 4,946,673 | $ 4,926,558 | $ 4,915,421 | $ 4,818,213 | $ 4,938,197 | $ 4,928,097 | ||||||||
| Less: Goodwill and other intangibles | (2,549,931) | (2,557,560) | (2,567,681) | (2,617,810) | (2,626,625) | (2,631,605) | (2,549,931) | (2,617,809) | ||||||||
| Less: Preferred stockholders' equity | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | ||||||||
| Tangible common equity | $ 2,050,264 | $ 2,007,182 | $ 2,040,990 | $ 1,970,746 | $ 1,950,794 | $ 1,848,606 | $ 2,050,264 | $ 1,972,286 | ||||||||
| Computation of Average Tangible Equity: | ||||||||||||||||
| Total stockholders' equity | $ 4,932,949 | $ 4,989,006 | $ 4,958,402 | $ 4,945,132 | $ 4,872,605 | $ 4,879,791 | $ 4,960,026 | $ 4,887,071 | ||||||||
| Less: Goodwill and other intangibles | (2,553,647) | (2,561,507) | (2,609,409) | (2,619,322) | (2,626,666) | (2,206,682) | (2,574,650) | (2,315,013) | ||||||||
| Tangible equity | $ 2,379,302 | $ 2,427,499 | $ 2,348,993 | $ 2,325,810 | $ 2,245,939 | $ 2,673,109 | $ 2,385,376 | $ 2,572,058 | ||||||||
| Computation of Average Tangible Common Equity: | ||||||||||||||||
| Total stockholders' equity | $ 4,932,949 | $ 4,989,006 | $ 4,958,402 | $ 4,945,132 | $ 4,872,605 | $ 4,879,791 | $ 4,960,026 | $ 4,887,071 | ||||||||
| Less: Goodwill and other intangibles | (2,553,647) | (2,561,507) | (2,609,409) | (2,619,322) | (2,626,666) | (2,206,682) | (2,574,650) | (2,315,013) | ||||||||
| Less: Preferred stockholders' equity | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | ||||||||
| Tangible common equity | $ 2,041,300 | $ 2,089,497 | $ 2,010,991 | $ 1,987,808 | $ 1,907,937 | $ 2,335,107 | $ 2,047,374 | $ 2,234,056 | ||||||||
| Computation of Tier 1 Common Capital: | ||||||||||||||||
| Tier 1 capital | $ 2,464,801 | $ 2,406,473 | $ 2,356,763 | $ 2,264,679 | $ 2,225,121 | $ 2,128,702 | $ 2,464,629 | $ 2,264,679 | ||||||||
| Less: Qualifying restricted core capital elements | (112,667) | (112,449) | (112,236) | (112,025) | (111,820) | (111,630) | (112,667) | (112,025) | ||||||||
| Less: Perpetual non-cumulative preferred stock | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | ||||||||
| Tier 1 common capital (Non-GAAP) | $ 2,014,132 | $ 1,956,022 | $ 1,906,525 | $ 1,814,652 | $ 1,775,299 | $ 1,679,070 | $ 2,013,960 | $ 1,814,652 | ||||||||