- Third quarter GAAP earnings of $0.15 per diluted share
-
Average loans increased 5% annualized QOQ
- Average C&I loans increased 10% annualized QOQ
- Indirect Auto and Home Equity drove 4% annualized increase in average consumer loans QOQ
-
Average transactional deposit balances increased 10% annualized QOQ and 7% YOY
- Average business noninterest-bearing deposit balances increased 26% annualized QOQ and 9% YOY
- Average noninterest-bearing deposit balances increased 17% annualized QOQ and 8% YOY
-
Strong credit quality maintained
- Originated net charge-offs averaged 0.31% of total originated loans, unchanged QOQ
- Criticized loans decreased 9% QOQ
BUFFALO, N.Y., Oct. 23, 2015 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (NASDAQ:FNFG) today reported GAAP net income available to common shareholders of $52.9 million, or $0.15 per diluted share for the third quarter of 2015, compared to $53.5 million, or $0.15 per diluted share, for the quarter ended June 30, 2015.
"In the third quarter of 2015, our business fundamentals were strong, as evidenced by a 10% annualized increase in average transactional deposits and 10% increase in commercial business loans. We also continued to make great progress in implementing our strategic investments, which remain on-time, on-budget and are focused on delivering enhanced products and services, based on customer preferences," said Gary M. Crosby, President and Chief Executive Officer. "As we roll-out these enhancements, I also am very pleased with the customer experience that our team is delivering and the positive brand recognition that it is creating for First Niagara across the markets we serve. In a recent J.D. Power Survey, 92% of our branch customers said that they would be 'likely advocates' of First Niagara as a banking partner to their friends and family – a number that puts us among top financial institutions with best-in-class customer experience."
"Overall third quarter financial results were in line with our expectations and were characterized by stable net interest income, lower operating expenses, strong balance sheet growth and positive credit metrics," said Gregory W. Norwood, Chief Financial Officer. "Through the first nine months of 2015, average loans increased 6% YOY driven by both commercial and consumer balance growth, while average noninterest bearing deposits increased 9% YOY reflecting our increased focus on core deposit acquisitions in our consumer and commercial lines of business."
Third Quarter Results
On a GAAP basis, in the third quarter of 2015, First Niagara reported net income available to common shareholders of $52.9 million, or $0.15 per diluted share, compared to $53.5 million, or $0.15 per diluted share in the second quarter of 2015. The company reported a loss of $927.6 million, or ($2.65) per share, for the quarter ended September 30, 2014.
Compared to the second quarter of 2015, net income available to common shareholders was primarily driven by:
- A 4% decrease in noninterest income, driven by volatility in capital markets income and wealth management revenues.
- A $1 million decrease in provision for credit losses driven by favorable asset quality trends and offset by provisioning to support a $0.7 billion increase in originated loan balances.
- A 1% decrease in noninterest expenses driven by lower marketing spend, lower levels of intangible amortization, and lower FDIC premiums.
Compared to the third quarter of 2014, net income available to common shareholders was primarily driven by:
- A $1.1 billion non-cash goodwill impairment charge and a $45 million reserve to address a process issue related to certain customer deposit accounts both incurred in the year-ago quarter.
- 11% increase in noninterest income in the third quarter of 2015 driven by higher deposit service charges, mortgage banking revenues, and lower historic tax credit amortization compared to the year-ago period.
- $4 million, or 2%, decrease in operating noninterest expense due to lower salaries and benefits from lower headcount and lower occupancy expense as a result of branch consolidations completed in 2015, lower amortization of core deposit intangibles, and lower restructuring expenses.
- 4% decline in net interest income attributable to lower benefits from discount accretion income on prepayments of certain Collateralized Loan Obligations (CLOs), and
- A higher effective tax rate of 26% in 2015.
| Operating Results (Non-GAAP) | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 | |||||
| Net interest income | $ 263.5 | $ 263.1 | $ 262.9 | $ 269.8 | $ 273.3 | |||||
| Provision for credit losses | 19.8 | 20.8 | 12.8 | 35.7 | 16.7 | |||||
| Noninterest income | 83.4 | 86.6 | 82.2 | 77.2 | 75.4 | |||||
| Noninterest expense | 245.4 | 247.9 | 243.5 | 248.2 | 249.5 | |||||
| Operating net income | 60.5 | 61.0 | 62.2 | 60.7 | 74.0 | |||||
| Preferred stock dividend | 7.5 | 7.5 | 7.5 | 7.5 | 7.5 | |||||
| Operating net income available to common | $ 52.9 | $ 53.5 | $ 54.7 | $ 53.2 | $ 66.5 | |||||
| Weighted average diluted shares outstanding | 353.2 | 352.8 | 352.6 | 352.2 | 351.9 | |||||
| Operating earnings per diluted share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.19 | |||||
| Reported Results (GAAP) | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 | |||||
| Operating net income before non-op. items | $ 60.5 | $ 61.0 | $ 62.2 | $ 60.7 | $ 74.0 | |||||
| Non-operating items (a) | -- | -- | 10.9 | (8.4) | 994.1 | |||||
| Net Income / (loss) | 60.5 | 61.0 | 51.4 | 69.1 | (920.0) | |||||
| Preferred stock dividend | 7.5 | 7.5 | 7.5 | 7.5 | 7.5 | |||||
| Net income / (loss) available to common | $ 52.9 | $ 53.5 | $ 43.8 | $ 61.5 | $ (927.6) | |||||
| Weighted average diluted shares outstanding | 353.2 | 352.8 | 352.6 | 352.2 | 350.4 | |||||
| Earnings (loss) per diluted share | $ 0.15 | $ 0.15 | $ 0.12 | $ 0.17 | $ (2.65) | |||||
| All amounts in millions except earnings per diluted share. | ||||||||||
|
(a) |
Q1 2015: Restructuring 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. | |
| Q3 2014: $1.1 billion non-cash goodwill impairment charge, reserves related to a process issue, and restructuring charges primarily related to branch realignment, net of taxes. |
Loans
Average loans increased 5% annualized from the prior quarter to $23.4 billion, driven primarily by increases in the company's commercial business (C&I), indirect auto and home equity loan portfolios. On an end-of-period basis, total loans increased 5% annualized from the prior quarter driven by a 7% annualized increase in C&I loans.
Average commercial loans, which include C&I and commercial real estate (CRE) loans, increased 5% annualized from prior quarter to $14.2 billion, driven by growth primarily in the company's New York, New England, and Tri-State markets.
- Average C&I loans increased 10% annualized to $6.0 billion, driven primarily by increases in the middle market and asset-based lending segments.
- CRE loans averaged $8.3 billion and increased 1% annualized from the prior quarter driven by construction lending offset by borrower prepayments.
Average consumer loans increased 4% annualized from prior quarter to $9.2 billion.
- Average indirect auto loan balances increased 10% annualized or by $55 million to $2.3 billion, as strong new origination activity was partially offset by increased pay-downs. Indirect auto originations during the quarter totaled $300 million. New originations in the third quarter yielded 3.42%, net of dealer reserve, an increase of 58 basis points compared to originations in the year-ago quarter.
- Average residential real estate loans increased 1% annualized, driven by greater cross-sales to the Private Client Services Group clients.
- Home equity balances increased for the tenth consecutive quarter to $3.0 billion, or 5% annualized from the prior quarter reflecting higher customer draws as well as the benefits of promotional and cross-sell campaigns.
| Average Loans | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 |
| Commercial real estate | $ 8,277 | $ 8,257 | $ 8,263 | $ 8,087 | $ 7,985 |
| Commercial business | 5,972 | 5,830 | 5,797 | 5,791 | 5,694 |
| Total commercial | 14,249 | 14,087 | 14,060 | 13,878 | 13,679 |
| Residential real estate | 3,338 | 3,326 | 3,338 | 3,364 | 3,351 |
| Home equity | 3,001 | 2,963 | 2,939 | 2,912 | 2,857 |
| Indirect auto | 2,293 | 2,238 | 2,187 | 2,132 | 1,978 |
| Credit cards | 306 | 304 | 311 | 314 | 313 |
| Other consumer | 255 | 260 | 275 | 283 | 287 |
| Total consumer | 9,193 | 9,091 | 9,050 | 9,005 | 8,786 |
| Total loans | $ 23,442 | $ 23,178 | $ 23,110 | $ 22,883 | $ 22,465 |
| All amounts in millions. |
Credit Quality
At September 30, 2015, the allowance for loan losses was $239 million, compared to $236 million at June 30, 2015. In the third quarter, provision for credit losses totaled $19.8 million, a $1 million decrease from $20.8 million in the prior quarter. Nonperforming assets comprised 0.58% of total assets, unchanged from June 30, 2015. At September 30, 2015, total criticized loans decreased 9% from the prior quarter.
Information for both the originated and acquired portfolios follows.
| Q3 2015 | Q2 2015 | |||||
| $ in millions | Originated | Acquired | Total | Originated | Acquired | Total |
| Provision for loan losses* | $ 20.7 | $ (1.4) | $ 19.3 | $ 19.5 | $ 0.9 | $ 20.5 |
| Net charge-offs | 15.5 | 0.6 | 16.2 | 15.5 | 0.5 | 16.0 |
| NCOs/ Avg Loans | 0.31% | 0.08% | 0.28% | 0.31% | 0.06% | 0.28% |
| Total loans** | $ 20,592 | $ 3,075 | $ 23,666 | $ 19,930 | $ 3,438 | $ 23,368 |
| (*) Excludes provision for unfunded commitments of $0.5 million and $0.3 million in 3Q15 and 2Q15, respectively | ||||||
| (**) Acquired loans net of associated credit discount; see accompanying tables for further information | ||||||
Originated loans
The provision for loan losses on originated loans totaled $21 million, an increase of $1 million from the second quarter of 2015. This increase was in large part driven by provisioning associated with the $0.7 billion increase in period-end originated loans from the prior quarter. Originated net charge-offs in the third quarter equaled $16 million or 31 basis points of average originated loans, and were consistent with the prior quarter.
At September 30, 2015, nonperforming originated loans totaled $186 million, or 0.90% of originated loans, compared to 0.91% at June 30, 2015. At September 30, 2015, the allowance for loan losses on originated loans totaled $233 million or 1.13% of such loans, compared to $228 million or 1.15% of such loans at June 30, 2015, and reflects continued improvements in underlying asset quality metrics.
Acquired loans
The provision for losses on acquired loans totaled a negative $1 million in the third quarter of 2015, driven by pay-downs in acquired loan balances, compared to provision expense of $1 million in the prior quarter. Net charge-offs on the acquired portfolio totaled $0.6 million during the quarter, compared to $0.5 million of net charge-offs in the prior quarter. At September 30, 2015, the allowance for loan losses on acquired loans totaled $5 million, compared to $7 million at June 30, 2015. Acquired nonperforming loans totaled $25 million, a 4% decrease from the prior quarter. Acquired criticized loans decreased 14% from June 30, 2015. At September 30, 2015, remaining credit marks available to absorb losses on a pool-by-pool basis totaled $64 million.
Deposits
Average deposits increased 6% annualized from the prior quarter to $28.6 billion.
- Non-interest checking deposit balances averaged $5.7 billion, up 17% annualized from the prior quarter and 8% from the year-ago period driven by higher business deposit balances.
- Average transactional deposit balances, which include interest-bearing and noninterest-bearing checking account balances, increased 10% annualized and currently represent 38% of the company's deposit balances.
- Money market deposit balances increased 6% annualized, reflecting the benefits of promotional marketing campaigns partially offset by seasonally lower municipal money market balances.
- Average savings balances decreased 8% annualized from the prior quarter driven by lower consumer balances.
- Time deposits increased 5% annualized to $4.0 billion, as increases in brokered certificate of deposit balances were partially offset by lower consumer and municipal certificate of deposit balances.
| Average Deposits | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 |
| Noninterest-bearing deposits | $ 5,661 | $ 5,427 | $ 5,430 | $ 5,485 | $ 5,259 |
| Savings accounts | 3,427 | 3,494 | 3,432 | 3,447 | 3,552 |
| Interest-bearing checking | 5,165 | 5,131 | 5,001 | 5,049 | 4,821 |
| Money market deposits | 10,403 | 10,251 | 10,132 | 10,037 | 9,882 |
| Certificates of deposit | 3,962 | 3,917 | 3,778 | 3,888 | 3,970 |
| Total deposits | $ 28,618 | $ 28,220 | $ 27,773 | $ 27,906 | $ 27,484 |
| All amounts in millions. |
Net Interest Income
Third quarter 2015 GAAP net interest income of $263 million was consistent with the prior quarter, as the benefits of a 2% annualized increase in average earning assets and an extra day in the quarter were offset by an expected four basis point decline in the reported net interest margin. The decrease in net interest margin to 2.98% reflects continued compression of earning asset yields in the current low interest rate and competitive pricing environment, lower discount accretion income on prepayment of CLOs and lower benefits from purchase accounting accretion on acquired loans.
- Yields on loans decreased 9 basis points to 3.64% reflecting continued pressure on loan yields due to low interest rates and competitive pressures, as well as lower benefits from purchase accounting accretion.
- Yields on investment securities increased 7 basis points to 2.92% due primarily to lower premium amortization on the residential mortgage-backed securities portfolio.
- The average cost of interest-bearing deposits remained flat to prior quarter at 0.29%.
Noninterest Income
Third quarter 2015 noninterest income of $83 million decreased 4% or $3 million compared to the prior quarter.
- Deposit service charges increased 3% from the prior quarter reflecting typical seasonal trends.
- Insurance commissions increased $1 million or 7% driven primarily by seasonally higher renewal volumes during the third quarter.
- Merchant and card fees increased 1% driven by higher debit card interchange revenue.
- Wealth management services decreased $1 million or 7%, reflecting lower levels of variable annuity sales as a result of market volatility during the quarter.
- Capital markets income, which primarily includes income from derivatives and syndications, decreased $3 million due to market volatility.
- Mortgage banking revenues were lower from the prior quarter reflecting lower locked volumes partially offset by a modest increase in gain-on-sale margins.
- Other noninterest income declined $1 million from the prior quarter primarily reflecting lower investment gains.
| Noninterest Income | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 |
| Deposit service charges | $ 22.9 | $ 22.2 | $ 20.4 | $ 22.6 | $ 20.4 |
| Insurance commissions | 18.3 | 17.1 | 15.7 | 14.8 | 18.4 |
| Merchant and card fees | 13.4 | 13.3 | 11.9 | 13.0 | 13.0 |
| Wealth management services | 14.6 | 15.7 | 14.7 | 14.4 | 15.4 |
| Mortgage banking | 5.1 | 5.8 | 4.9 | 4.6 | 4.4 |
| Capital markets income | 2.6 | 5.3 | 4.2 | 8.3 | 3.5 |
| Lending and leasing | 4.5 | 4.0 | 4.4 | 4.6 | 3.9 |
| Bank owned life insurance | 2.8 | 3.2 | 3.6 | 3.2 | 3.1 |
| Other income | (0.7) | 0.1 | 2.6 | (8.3) | (6.6) |
| Total noninterest income | $ 83.4 | $ 86.6 | $ 82.2 | $ 77.2 | $ 75.4 |
| All amounts in millions. |
Noninterest Expense
Noninterest expenses totaled $245 million in the third quarter of 2015, or 1% below second quarter 2015 levels. The quarter-over-quarter decrease was primarily driven by lower marketing spend, lower intangible amortization and lower FDIC premiums.
- Salaries and benefits expense of $114 million was consistent with prior quarter.
- Occupancy and equipment expense decreased 2%, due primarily to lower rent and depreciation.
- Technology and communications expenses increased $2 million or 5%, due primarily to higher software and depreciation expenses.
- Professional services fees increased $2 million due to vendor and other consulting costs.
- FDIC expenses decreased $2 million reflecting the expiration of the impact of goodwill impairment.
| Operating Noninterest Expense (Non-GAAP)* | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 |
| Salaries and employee benefits | $ 113.8 | $ 113.6 | $ 112.0 | $ 111.0 | $ 116.2 |
| Occupancy and equipment | 25.5 | 26.0 | 27.3 | 28.4 | 27.5 |
| Technology and communications | 38.3 | 36.5 | 35.1 | 33.9 | 31.5 |
| Marketing and advertising | 8.4 | 10.3 | 9.9 | 11.6 | 7.7 |
| Professional services | 18.1 | 16.3 | 13.1 | 16.6 | 14.0 |
| Amortization of intangibles | 4.0 | 5.1 | 6.2 | 6.4 | 6.5 |
| Federal deposit insurance premiums | 10.0 | 11.8 | 11.2 | 11.9 | 9.6 |
| Other expense | 27.3 | 28.4 | 28.9 | 28.4 | 36.5 |
| Total operating noninterest expense | $ 245.4 | $ 247.9 | $ 243.5 | $ 248.2 | $ 249.5 |
| *All amounts in millions. See appendix for reconciliation of GAAP to Non-GAAP amounts | |||||
In the third quarter of 2015, the efficiency ratio was 70.7%, compared to 70.9% 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 September 30, 2015, the company's estimated consolidated Total Risk Based capital and Common Equity Tier 1 capital ratios were 12.0% and 8.5%, respectively, unchanged from June 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, $39 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.
Investor Call
A conference call will be held at 8:30 a.m. Eastern Time on Friday, October 23, 2015 to discuss the company's financial results. Those wishing to participate in the call may dial toll-free 1-877-983-9285 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 December 8, 2015 by dialing 1-800-633-8284, passcode: 21779543.
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; and (6) execution risk associated with the announced investment plan.
| First Niagara Financial Group, Inc. | ||||||||
| Income Statement Highlights -- Reported Basis | ||||||||
| (in thousands, except per share amounts) | ||||||||
| 2015 | 2014 | Nine months ended | ||||||
| Third | Second | First | Fourth | Third | Second | September 30, | September 30, | |
| Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2015 | 2014 | |
| Interest income: | ||||||||
| Loans and leases | $ 211,407 | $ 211,899 | $ 210,371 | $ 214,609 | $ 212,452 | $ 210,218 | $ 633,677 | $ 632,314 |
| Investment securities and other | 87,914 | 86,356 | 86,280 | 86,919 | 91,668 | 91,566 | 260,550 | 273,655 |
| Total interest income | 299,321 | 298,255 | 296,651 | 301,528 | 304,120 | 301,784 | 894,227 | 905,969 |
| Interest expense: | ||||||||
| Deposits | 17,040 | 16,568 | 15,344 | 14,295 | 13,590 | 13,183 | 48,952 | 39,009 |
| Borrowings | 18,790 | 18,577 | 18,363 | 17,450 | 17,251 | 16,789 | 55,730 | 51,122 |
| Total interest expense | 35,830 | 35,145 | 33,707 | 31,745 | 30,841 | 29,972 | 104,682 | 90,131 |
| Net interest income | 263,491 | 263,110 | 262,944 | 269,783 | 273,279 | 271,812 | 789,545 | 815,838 |
| Provision for credit losses | 19,768 | 20,756 | 12,765 | 35,706 | 16,700 | 19,800 | 53,289 | 60,200 |
| Net interest income after provision | 243,723 | 242,354 | 250,179 | 234,077 | 256,579 | 252,012 | 736,256 | 755,638 |
| Noninterest income: | ||||||||
| Deposit service charges | 22,944 | 22,208 | 20,389 | 22,611 | 20,373 | 23,733 | 65,541 | 67,462 |
| Insurance commissions | 18,252 | 17,060 | 15,714 | 14,764 | 18,352 | 17,343 | 51,026 | 51,386 |
| Merchant and card fees | 13,423 | 13,317 | 11,907 | 13,043 | 12,991 | 12,834 | 38,647 | 37,329 |
| Wealth management services | 14,572 | 15,718 | 14,650 | 14,404 | 15,367 | 15,949 | 44,940 | 46,903 |
| Mortgage banking | 5,070 | 5,783 | 4,887 | 4,600 | 4,358 | 5,241 | 15,740 | 12,995 |
| Capital markets income | 2,608 | 5,284 | 4,152 | 8,312 | 3,509 | 2,917 | 12,044 | 10,049 |
| Lending and leasing | 4,487 | 3,998 | 4,353 | 4,567 | 3,914 | 4,680 | 12,838 | 13,326 |
| Bank owned life insurance | 2,819 | 3,160 | 3,592 | 3,187 | 3,080 | 3,145 | 9,571 | 11,630 |
| Other income | (732) | 79 | 2,600 | (8,311) | (6,552) | (4,985) | 1,947 | (18,107) |
| Total noninterest income | 83,443 | 86,607 | 82,244 | 77,177 | 75,392 | 80,857 | 252,294 | 232,973 |
| Noninterest expense: | ||||||||
| Salaries and employee benefits | 113,794 | 113,561 | 111,973 | 110,985 | 116,245 | 117,728 | 339,328 | 351,913 |
| Occupancy and equipment | 25,538 | 26,021 | 27,332 | 28,379 | 27,450 | 28,553 | 78,891 | 83,879 |
| Technology and communications | 38,301 | 36,486 | 35,061 | 33,940 | 31,465 | 31,140 | 109,848 | 92,950 |
| Marketing and advertising | 8,445 | 10,297 | 9,863 | 11,584 | 7,746 | 8,439 | 28,605 | 23,549 |
| Professional services | 18,052 | 16,321 | 13,070 | 16,644 | 13,988 | 13,029 | 47,443 | 38,940 |
| Amortization of intangibles | 4,001 | 5,092 | 6,205 | 6,432 | 6,521 | 6,790 | 15,298 | 20,820 |
| Federal deposit insurance premiums | 10,026 | 11,750 | 11,158 | 11,911 | 9,579 | 9,756 | 32,934 | 28,190 |
| Restructuring charges | -- | -- | 17,517 | 9,066 | 2,364 | -- | 17,517 | 12,720 |
| Goodwill impairment | -- | -- | -- | -- | 1,100,000 | -- | -- | 1,100,000 |
| Deposit account remediation | -- | -- | -- | (23,000) | 45,000 | -- | -- | 45,000 |
| Other expense | 27,276 | 28,371 | 28,859 | 28,371 | 36,467 | 28,680 | 84,506 | 91,715 |
| Total noninterest expense | 245,433 | 247,899 | 261,038 | 234,312 | 1,396,825 | 244,115 | 754,370 | 1,889,676 |
| Income (loss) before income tax | 81,733 | 81,062 | 71,385 | 76,942 | (1,064,854) | 88,754 | 234,180 | (901,065) |
| Income tax expense (benefit) | 21,251 | 20,052 | 20,000 | 7,875 | (144,808) | 12,879 | 61,303 | (117,104) |
| Net income (loss) | 60,482 | 61,010 | 51,385 | 69,067 | (920,046) | 75,875 | 172,877 | (783,961) |
| Preferred stock dividend | 7,547 | 7,547 | 7,547 | 7,547 | 7,547 | 7,547 | 22,641 | 22,641 |
|
Net income (loss) available to common stockholders |
$ 52,935 | $ 53,463 | $ 43,838 | $ 61,520 | $ (927,593) | $ 68,328 | $ 150,236 | $ (806,602) |
| Financial Ratios: | ||||||||
| Earnings (loss) per basic share | $ 0.15 | $ 0.15 | $ 0.12 | $ 0.17 | $ (2.65) | $ 0.19 | $ 0.42 | $ (2.31) |
| Earnings (loss) per diluted share | $ 0.15 | $ 0.15 | $ 0.12 | $ 0.17 | $ (2.65) | $ 0.19 | $ 0.42 | (2.31) |
| Weighted average shares outstanding - basic(1) | 351,293 | 351,126 | 350,741 | 350,444 | 350,381 | 350,229 | 351,055 | 350,174 |
| Weighted average shares outstanding - diluted(1) | 353,248 | 352,791 | 352,621 | 352,152 | 350,381 | 351,541 | 352,847 | 350,174 |
| Net revenue(2) | $ 346,934 | $ 349,717 | $ 345,188 | $ 346,960 | $ 348,671 | $ 352,669 | $ 1,041,839 | $ 1,048,811 |
| Noninterest income as a percentage of net revenue(2) | 24.05% | 24.76% | 23.83% | 22.24% | 21.62% | 22.93% | 24.22% | 22.21% |
| Pre-tax, pre-provision income (loss)(3) | $ 101,501 | $ 101,818 | $ 84,150 | $ 112,648 | $ (1,048,154) | $ 108,554 | $ 287,469 | $ (840,865) |
| Pre-tax, pre-provision income per diluted share(3) | $ 0.29 | $ 0.29 | $ 0.24 | $ 0.32 | $ (2.99) | $ 0.31 | $ 0.81 | $ (2.40) |
| Pre-tax, pre-provision return on average assets(3) | 1.03% | 1.05% | 0.88% | 1.17 % | (10.8)% | 1.14% | 0.99 % | (2.94)% |
| Net interest margin(4) | 2.98% | 3.02% | 3.07% | 3.11% | 3.21% | 3.26% | 3.02% | 3.27% |
| Interest yield on average loans(4) | 3.64% | 3.73% | 3.75% | 3.78% | 3.80% | 3.89% | 3.70% | 3.89% |
| Rate paid on interest-bearing liabilities | 0.50% | 0.49% | 0.48% | 0.45% | 0.44% | 0.44% | 0.49% | 0.44% |
| Efficiency ratio | 70.7% | 70.9% | 75.6% | 67.5% | 400.6% | 69.2% | 72.4% | 180.2% |
| Expenses as a percentage of average loans and deposits | 1.89% | 1.93% | 2.05% | 1.85% | 11.19% | 1.97% | 1.96% | 5.13% |
| Effective tax rate (benefit) | 26.0% | 24.7% | 28.0% | 10.2 % | (13.6)% | 14.5% | 26.2 % | (13.0)% |
| Return on average assets(5) | 0.61 % | 0.63 % | 0.54 % | 0.72 % | (9.46)% | 0.80 % | 0.59 % | (2.74)% |
| Return on average equity(5) | 5.78 % | 5.90 % | 5.05 % | 6.62 % | (71.57)% | 6.01 % | 5.58 % | (20.69)% |
| Return on average tangible equity(3)(5) | 8.73 % | 8.94 % | 7.68 % | 10.07 % | (141.16)% | 12.01 % | 8.46 % | (41.29)% |
| Return on average common equity | 5.51 % | 5.63 % | 4.69 % | 6.42 % | (77.27)% | 5.80 % | 5.28 % | (22.80)% |
| Return on average tangible common equity(3) | 8.72 % | 8.94 % | 7.48 % | 10.24 % | (163.71)% | 12.48 % | 8.39 % | (49.00)% |
| (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 | |||||
| September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | |
| Cash and cash equivalents | $ 420,289 | $ 527,323 | $ 387,676 | $ 420,033 | $ 451,313 | $ 557,423 |
| Investment securities: | ||||||
| Available for sale | 5,725,608 | 5,750,860 | 5,911,419 | 5,915,338 | 6,198,140 | 6,683,914 |
| Held to maturity | 6,280,049 | 6,169,838 | 6,214,561 | 5,941,621 | 5,351,977 | 4,834,279 |
| FHLB and FRB common stock | 373,066 | 379,135 | 375,090 | 411,857 | 389,870 | 434,322 |
| Total investment securities | 12,378,723 | 12,299,833 | 12,501,070 | 12,268,816 | 11,939,987 | 11,952,515 |
| Loans held for sale | 51,056 | 59,816 | 48,755 | 39,825 | 31,245 | 45,446 |
| Loans and leases: | ||||||
| Commercial: | ||||||
| Real estate | 8,365,808 | 8,312,332 | 8,287,108 | 8,204,027 | 8,013,622 | 7,940,977 |
| Business | 6,031,358 | 5,923,524 | 5,790,980 | 5,775,413 | 5,836,235 | 5,741,684 |
| Total commercial loans | 14,397,166 | 14,235,856 | 14,078,088 | 13,979,440 | 13,849,857 | 13,682,661 |
| Consumer: | ||||||
| Residential real estate | 3,345,701 | 3,329,799 | 3,330,216 | 3,353,081 | 3,360,805 | 3,358,347 |
| Home equity | 3,032,618 | 2,984,872 | 2,943,844 | 2,936,123 | 2,886,655 | 2,835,421 |
| Indirect auto | 2,330,826 | 2,256,004 | 2,200,913 | 2,166,320 | 2,073,843 | 1,871,688 |
| Credit cards | 305,779 | 304,682 | 301,228 | 324,113 | 312,549 | 311,640 |
| Other consumer | 254,109 | 257,204 | 263,985 | 278,305 | 286,140 | 286,062 |
| Total consumer loans | 9,269,033 | 9,132,561 | 9,040,186 | 9,057,942 | 8,919,992 | 8,663,158 |
| Total loans and leases | 23,666,199 | 23,368,417 | 23,118,274 | 23,037,382 | 22,769,849 | 22,345,819 |
| Allowance for loan losses | 238,700 | 235,600 | 231,138 | 234,251 | 222,753 | 219,426 |
| Loans and leases, net | 23,427,499 | 23,132,817 | 22,887,136 | 22,803,131 | 22,547,096 | 22,126,393 |
| Bank owned life insurance | 434,263 | 431,335 | 428,454 | 426,192 | 423,376 | 420,230 |
| Goodwill and other intangibles | 1,400,199 | 1,404,201 | 1,410,800 | 1,417,005 | 1,423,437 | 2,528,481 |
| Other assets | 1,301,152 | 1,208,218 | 1,243,588 | 1,176,036 | 1,155,588 | 997,120 |
| Total assets | $ 39,413,181 | $ 39,063,543 | $ 38,907,479 | $ 38,551,038 | $ 37,972,042 | $ 38,627,608 |
| Deposits: | ||||||
| Savings accounts | $ 3,359,320 | $ 3,483,777 | $ 3,488,441 | $ 3,451,616 | $ 3,458,661 | $ 3,626,750 |
| Interest-bearing checking | 5,285,987 | 5,088,856 | 5,158,264 | 5,084,456 | 5,055,458 | 4,743,684 |
| Money market deposits | 10,483,721 | 10,303,873 | 10,368,358 | 9,962,220 | 9,894,346 | 9,834,344 |
| Noninterest-bearing deposits | 5,813,571 | 5,549,944 | 5,500,484 | 5,407,382 | 5,308,736 | 5,284,037 |
| Certificates of deposit | 3,873,521 | 4,020,367 | 3,734,226 | 3,875,563 | 3,952,879 | 3,955,754 |
| Total deposits | 28,816,120 | 28,446,817 | 28,249,773 | 27,781,237 | 27,670,080 | 27,444,569 |
| Short-term borrowings | 4,086,415 | 4,275,886 | 4,739,264 | 5,471,974 | 4,928,762 | 4,890,343 |
| Long-term borrowings | 1,783,402 | 1,683,476 | 1,233,550 | 733,620 | 733,684 | 733,337 |
| Other liabilities | 587,867 | 536,239 | 559,646 | 471,449 | 543,813 | 477,685 |
| Total liabilities | 35,273,804 | 34,942,418 | 34,782,233 | 34,458,280 | 33,876,339 | 33,545,934 |
| Preferred stockholders' equity | 338,002 | 338,002 | 338,002 | 338,002 | 338,002 | 338,002 |
| Common stockholders' equity | 3,801,375 | 3,783,123 | 3,787,244 | 3,754,756 | 3,757,701 | 4,743,672 |
| Total stockholders' equity | 4,139,377 | 4,121,125 | 4,125,246 | 4,092,758 | 4,095,703 | 5,081,674 |
| Total liabilities and stockholders' equity | $ 39,413,181 | $ 39,063,543 | $ 38,907,479 | $ 38,551,038 | $ 37,972,042 | $ 38,627,608 |
| Selected balance sheet information: | ||||||
| Total interest-earning assets(1) | $ 36,099,580 | $ 35,813,498 | $ 35,594,208 | $ 35,310,447 | $ 34,720,650 | $ 34,305,451 |
| Total interest-bearing liabilities | 28,872,365 | 28,856,235 | 28,722,103 | 28,579,449 | 28,023,790 | 27,784,211 |
| Net interest-earning assets | $ 7,227,215 | $ 6,957,263 | $ 6,872,105 | $ 6,730,998 | $ 6,696,860 | $ 6,521,240 |
| Tangible common equity(1)(2) | $ 2,401,176 | $ 2,378,922 | $ 2,376,444 | $ 2,337,751 | $ 2,334,263 | $ 2,215,191 |
| Unrealized gain on available for sale securities, net of tax(3) | 29,877 | 37,464 | 68,194 | 52,244 | 55,052 | 86,244 |
| Total core deposits | $ 24,942,599 | $ 24,426,450 | $ 24,515,547 | $ 23,905,674 | $ 23,717,201 | $ 23,488,815 |
| Originated loans(4) | $ 20,591,532 | $ 19,929,719 | $ 19,528,609 | $ 19,295,553 | $ 18,841,896 | $ 18,196,302 |
| Acquired loans(5) | 3,138,568 | 3,517,525 | 3,681,354 | 3,834,931 | 4,028,091 | 4,254,750 |
| Credit related discount on acquired loans(6) | (63,901) | (78,827) | (91,689) | (93,102) | (100,138) | (105,233) |
| Total Loans | $ 23,666,199 | $ 23,368,417 | $ 23,118,274 | $ 23,037,382 | $ 22,769,849 | $ 22,345,819 |
| (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 | Nine months ended | ||||||||||||||
| September 30, 2015 | June 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
| Yields | Yields | Yields | Yields | Yields | |||||||||||
|
Average Balances |
Interest(1) |
and Rates(1) |
Average Balances |
Interest(1) |
and Rates(1) |
Average Balances |
Interest(1) |
and Rates(1) |
Average Balances |
Interest(1) |
and Rates(1) |
Average Balances |
Interest(1) |
and Rates(1) |
|
| Interest-earning assets: | |||||||||||||||
| Loans and leases(2) | |||||||||||||||
| Commercial: | |||||||||||||||
| Real estate | $ 8,277 | $ 74 | 3.52% | $ 8,257 | $ 75 | 3.61% | $ 7,985 | $ 74 | 3.65% | $ 8,266 | $ 224 | 3.58% | $ 7,896 | $ 226 | 3.77% |
| Business | 5,972 | 50 | 3.26 | 5,830 | 52 | 3.48 | 5,694 | 51 | 3.51 | 5,867 | 151 | 3.39 | 5,558 | 149 | 3.54 |
| Total commercial loans | 14,249 | 124 | 3.41 | 14,087 | 127 | 3.56 | 13,679 | 126 | 3.59 | 14,133 | 375 | 3.50 | 13,454 | 375 | 3.68 |
| Consumer: | |||||||||||||||
| Residential real estate | 3,338 | 31 | 3.70 | 3,326 | 31 | 3.68 | 3,351 | 32 | 3.77 | 3,334 | 93 | 3.72 | 3,376 | 97 | 3.82 |
| Home equity | 3,001 | 29 | 3.82 | 2,963 | 28 | 3.86 | 2,857 | 29 | 4.01 | 2,968 | 86 | 3.86 | 2,805 | 85 | 4.07 |
| Indirect auto | 2,293 | 17 | 2.86 | 2,238 | 15 | 2.74 | 1,978 | 14 | 2.84 | 2,240 | 47 | 2.80 | 1,782 | 38 | 2.87 |
| Credit cards | 306 | 9 | 11.44 | 304 | 9 | 11.40 | 313 | 9 | 11.44 | 307 | 26 | 11.53 | 312 | 27 | 11.50 |
| Other consumer | 255 | 5 | 8.57 | 260 | 5 | 8.49 | 287 | 6 | 8.54 | 263 | 17 | 8.52 | 292 | 19 | 8.57 |
| Total consumer loans | 9,193 | 91 | 3.91 | 9,091 | 88 | 3.91 | 8,786 | 90 | 4.06 | 9,112 | 269 | 3.95 | 8,567 | 266 | 4.15 |
| Total loans and leases | 23,442 | 215 | 3.64 | 23,178 | 215 | 3.73 | 22,465 | 215 | 3.80 | 23,245 | 644 | 3.70 | 22,021 | 641 | 3.89 |
| Residential MBS | 7,478 | 45 | 2.40 | 7,381 | 43 | 2.30 | 6,406 | 41 | 2.56 | 7,347 | 132 | 2.40 | 6,067 | 121 | 2.65 |
| Commercial MBS | 1,212 | 12 | 3.88 | 1,311 | 11 | 3.42 | 1,564 | 13 | 3.32 | 1,308 | 34 | 3.51 | 1,623 | 41 | 3.35 |
| Other investment securities (3) | 3,518 | 32 | 3.68 | 3,604 | 34 | 3.75 | 3,854 | 39 | 4.06 | 3,559 | 98 | 3.65 | 4,131 | 117 | 3.76 |
| Total securities, at amortized cost | 12,208 | 89 | 2.92 | 12,296 | 88 | 2.85 | 11,824 | 93 | 3.15 | 12,214 | 264 | 2.88 | 11,821 | 278 | 3.14 |
| Money market and other investments | 109 | 1 | 1.92 | 100 | -- | 1.56 | 86 | 1 | 2.76 | 122 | 1 | 1.43 | 125 | 2 | 1.74 |
| Total interest-earning assets | 35,759 | $ 305 | 3.38% | 35,574 | $ 303 | 3.42% | 34,375 | $ 309 | 3.57% | 35,581 | $ 909 | 3.42% | 33,967 | $ 920 | 3.62% |
| Goodwill and other intangibles | 1,402 | 1,408 | 2,515 | 1,408 | 2,528 | ||||||||||
| Other noninterest-earning assets | 1,890 | 1,931 | 1,701 | 1,903 | 1,692 | ||||||||||
| Total assets | $ 39,051 | $ 38,913 | $ 38,591 | $ 38,892 | $ 38,187 | ||||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Deposits | |||||||||||||||
| Savings accounts | $ 3,427 | $ 1 | 0.10% | $ 3,494 | $ 1 | 0.09% | $ 3,552 | $ 1 | 0.09% | $ 3,451 | $ 2 | 0.09% | $ 3,612 | $ 2 | 0.09% |
| Interest-bearing checking | 5,165 | -- | 0.03 | 5,131 | -- | 0.03 | 4,821 | -- | 0.03 | 5,100 | 1 | 0.03 | 4,792 | 1 | 0.03 |
| Money market deposits | 10,403 | 8 | 0.29 | 10,251 | 8 | 0.29 | 9,882 | 6 | 0.23 | 10,263 | 22 | 0.28 | 9,913 | 16 | 0.22 |
| Certificates of deposit | 3,962 | 8 | 0.81 | 3,917 | 8 | 0.82 | 3,970 | 7 | 0.67 | 3,886 | 24 | 0.82 | 3,864 | 20 | 0.68 |
| Total interest bearing deposits | 22,957 | 17 | 0.29% | 22,793 | 17 | 0.29% | 22,225 | 14 | 0.24% | 22,700 | 49 | 0.29% | 22,181 | 39 | 0.24% |
| Borrowings | |||||||||||||||
| Short-term borrowings | 3,953 | 5 | 0.50% | 4,522 | 5 | 0.48% | 4,737 | 5 | 0.43% | 4,529 | 16 | 0.48% | 4,597 | 15 | 0.43% |
| Long-term borrowings | 1,693 | 14 | 3.24 | 1,359 | 13 | 3.90 | 733 | 12 | 6.56 | 1,362 | 40 | 3.89 | 733 | 36 | 6.62 |
| Total borrowings | 5,646 | 19 | 1.32 | 5,881 | 18 | 1.27 | 5,470 | 17 | 1.25 | 5,891 | 56 | 1.26 | 5,330 | 51 | 1.28 |
| Total interest-bearing liabilities | 28,603 | $ 36 | 0.50% | 28,674 | $ 35 | 0.49% | 27,695 | $ 31 | 0.44% | 28,591 | $ 105 | 0.49% | 27,511 | $ 90 | 0.44% |
| Noninterest-bearing deposits | 5,661 | 5,427 | 5,259 | 5,507 | 5,068 | ||||||||||
| Other noninterest-bearing liabilities | 637 | 667 | 536 | 653 | 541 | ||||||||||
| Total liabilities | 34,901 | 34,768 | 33,490 | 34,751 | 33,120 | ||||||||||
| Total stockholders' equity | 4,150 | 4,145 | 5,100 | 4,141 | 5,067 | ||||||||||
| Total liabilities and stockholders' equity | $ 39,051 | $ 38,913 | $ 38,591 | $ 38,892 | $ 38,187 | ||||||||||
| Net interest income (FTE) | $ 269 | $ 268 | $ 278 | $ 804 | $ 830 | ||||||||||
| Taxable Equivalent Adjustment(1) | 6 | 5 | 5 | 14 | 14 | ||||||||||
| Total core deposits | $ 24,656 | $ 9 | 0.14% | $ 24,303 | $ 9 | 0.14% | $ 23,514 | $ 7 | 0.12% | $ 24,321 | $ 25 | 0.14% | $ 23,385 | $ 19 | 0.11% |
| Total transactional deposits | 10,826 | -- | 0.01% | 10,558 | -- | 0.01% | 10,080 | -- | 0.01% | 10,607 | 1 | 0.01% | 9,860 | 1 | 0.02% |
| Total deposits | 28,618 | 17 | 0.24% | 28,220 | 17 | 0.24% | 27,484 | 14 | 0.20% | 28,207 | 49 | 0.23% | 27,249 | 39 | 0.19% |
| Tax equivalent net interest rate spread | 2.88% | 2.93% | 3.13% | 2.93% | 3.18% | ||||||||||
| Tax equivalent net interest rate margin | 2.98% | 3.02% | 3.21% | 3.02% | 3.27% | ||||||||||
| (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 | Nine months ended | ||||||
| Third | Second | First | Fourth | Third | Second | September 30, | September 30, | |
| Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2015 | 2014 | |
| Beginning balance | $ 235,600 | $ 231,138 | $ 234,251 | $ 222,753 | $ 219,426 | $ 213,937 | $ 234,251 | $ 209,274 |
| Net loan (charge-offs) recoveries: | ||||||||
| Commercial real estate | $ (2,686) | $ (5,525) | $ (5,825) | $ (2,008) | $ (2,259) | $ (4,885) | $ (14,036) | $ (6,239) |
| Commercial business | (6,286) | (3,513) | (4,178) | (12,650) | (3,148) | (1,795) | (13,977) | (14,081) |
| Residential real estate | (230) | (197) | (266) | (476) | (102) | (352) | (693) | (628) |
| Home equity | (1,056) | (1,367) | (1,526) | (1,406) | (1,131) | (1,294) | (3,949) | (5,470) |
| Indirect auto | (1,743) | (1,342) | (1,226) | (2,241) | (1,621) | (1,455) | (4,311) | (5,162) |
| Credit cards | (2,215) | (2,522) | (2,450) | (2,464) | (2,726) | (2,930) | (7,187) | (8,700) |
| Other consumer | (1,952) | (1,528) | (1,807) | (1,457) | (1,986) | (1,200) | (5,287) | (5,241) |
| Total net loan charge-offs | $ (16,168) | $ (15,994) | $ (17,278) | $ (22,702) | $ (12,973) | $ (13,911) | $ (49,440) | $ (45,521) |
| Provision for loan losses | 19,268 | 20,456 | 14,165 | 34,200 | 16,300 | 19,400 | 53,889 | 59,000 |
| Ending balance | $ 238,700 | $ 235,600 | $ 231,138 | $ 234,251 | $ 222,753 | $ 219,426 | $ 238,700 | $ 222,753 |
| Supplemental information | ||||||||
| Allowance to loans | 1.01% | 1.01% | 1.00% | 1.02% | 0.98% | 0.98 % | 1.01% | 0.98% |
| Allowance for originated loans to originated loans(1) | 1.13% | 1.15% | 1.15% | 1.18% | 1.16% | 1.18 % | 1.13% | 1.16% |
| Net charge-offs (recoveries) to average loans (annualized) | ||||||||
| Commercial real estate | 0.13 % | 0.27 % | 0.29 % | 0.10 % | 0.11% | 0.25 % | 0.23 % | 0.11% |
| Commercial business | 0.42 % | 0.24 % | 0.29 % | 0.87 % | 0.22% | 0.13 % | 0.32 % | 0.34% |
| Total commercial loans | 0.25 % | 0.26 % | 0.28 % | 0.42 % | 0.16% | 0.20 % | 0.26 % | 0.20% |
| Residential real estate | 0.03 % | 0.02 % | 0.03 % | 0.06 % | 0.01% | 0.04 % | 0.03 % | 0.02% |
| Home equity | 0.14 % | 0.18 % | 0.21 % | 0.19 % | 0.16% | 0.18 % | 0.18 % | 0.26% |
| Indirect auto | 0.30 % | 0.24 % | 0.22 % | 0.42 % | 0.33% | 0.33 % | 0.26 % | 0.39% |
| Credit cards | 2.90 % | 3.32 % | 3.16 % | 3.13 % | 3.49% | 3.80 % | 3.12 % | 3.72% |
| Other consumer | 3.06 % | 2.35 % | 2.63 % | 2.06 % | 2.77% | 1.65 % | 2.68 % | 2.39% |
| Total consumer loans | 0.32 % | 0.31 % | 0.33 % | 0.36 % | 0.35% | 0.34 % | 0.31 % | 0.39% |
| Total loans | 0.28 % | 0.28 % | 0.30 % | 0.40 % | 0.23% | 0.25 % | 0.28 % | 0.28% |
| Net charge-offs (recoveries) of originated loans to average originated loans (annualized)(1) | ||||||||
| Commercial real estate | 0.14 % | 0.31 % | 0.24 % | 0.06 % | 0.13% | 0.29 % | 0.23 % | 0.11% |
| Commercial business | 0.44 % | 0.25 % | 0.31 % | 0.93 % | 0.24% | 0.14 % | 0.33 % | 0.36% |
| Total commercial loans | 0.27 % | 0.28 % | 0.27 % | 0.44 % | 0.18% | 0.22 % | 0.27 % | 0.22% |
| Residential real estate | 0.04 % | 0.04 % | 0.05 % | 0.09 % | 0.02% | 0.07 % | 0.04 % | 0.04% |
| Home equity | 0.14 % | 0.17 % | 0.16 % | 0.15 % | 0.17% | 0.16 % | 0.15 % | 0.18% |
| Indirect auto | 0.30 % | 0.24 % | 0.22 % | 0.42 % | 0.33% | 0.33 % | 0.26 % | 0.39% |
| Credit cards | 2.90 % | 3.32 % | 3.16 % | 3.13 % | 3.49% | 3.80 % | 3.12 % | 3.72% |
| Other consumer | 3.06 % | 2.35 % | 2.63 % | 2.06 % | 2.77% | 1.65 % | 2.68 % | 2.39% |
| Total consumer loans | 0.38 % | 0.37 % | 0.38 % | 0.44 % | 0.45% | 0.45 % | 0.38 % | 0.49% |
| Total loans | 0.31 % | 0.31 % | 0.31 % | 0.44 % | 0.27% | 0.30 % | 0.31 % | 0.31% |
| Nonperforming loans: | ||||||||
| Originated(1): | ||||||||
| Commercial real estate | $ 54,699 | $ 60,021 | $ 65,655 | $ 53,164 | $ 57,340 | $ 55,945 | $ 54,699 | $ 57,340 |
| Commercial business | 45,389 | 42,979 | 54,506 | 45,201 | 36,939 | 32,861 | 45,389 | 36,939 |
| Residential real estate | 32,455 | 32,877 | 32,791 | 33,652 | 36,113 | 33,870 | 32,455 | 36,113 |
| Home equity | 34,191 | 27,092 | 26,163 | 23,749 | 23,392 | 19,429 | 34,191 | 23,392 |
| Indirect auto | 13,795 | 13,066 | 13,399 | 12,616 | 11,890 | 9,821 | 13,795 | 11,890 |
| Other consumer | 5,047 | 4,917 | 5,065 | 5,140 | 5,134 | 5,037 | 5,047 | 5,134 |
| Total originated nonperforming loans | 185,576 | 180,952 | 197,579 | 173,522 | 170,808 | 156,963 | 185,576 | 170,808 |
| Total acquired nonperforming loans(2) | 25,365 | 26,553 | 30,236 | 30,223 | 28,611 | 32,488 | 25,365 | 28,611 |
| Total nonperforming loans | 210,941 | 207,505 | 227,815 | 203,745 | 199,419 | 189,451 | 210,941 | 199,419 |
| Real estate owned | 18,359 | 17,397 | 19,128 | 20,541 | 20,261 | 24,270 | 18,359 | 20,261 |
| Total nonperforming assets(3) | $ 229,300 | $ 224,902 | $ 246,943 | $ 224,286 | $ 219,680 | $ 213,721 | $ 229,300 | $ 219,680 |
| Accruing troubled debt restructurings (TDR) | $ 60,941 | $ 64,643 | $ 64,401 | $ 67,102 | $ 69,199 | $ 80,214 | $ 60,941 | $ 69,199 |
| Loans 90 days past due still accruing(4) | 69,879 | 78,279 | 87,213 | 93,903 | 108,615 | 112,718 | 69,879 | 108,615 |
| Total classified loans(5) | 591,771 | 592,148 | 615,518 | 609,316 | 649,320 | 661,699 | 591,771 | 649,320 |
| Total criticized loans(6) | $ 858,243 | $ 938,951 | $ 990,656 | $ 1,041,050 | $ 1,089,851 | $ 1,072,133 | $ 858,243 | $ 1,089,851 |
| Total nonperforming loans to loans | 0.89% | 0.89% | 0.99% | 0.88% | 0.88% | 0.85 % | 0.89% | 0.88% |
| Total nonperforming originated loans to originated loans(1) | 0.90% | 0.91% | 1.01% | 0.90% | 0.91% | 0.86 % | 0.90% | 0.91% |
| Total nonperforming assets to loans and real estate owned | 0.97% | 0.96% | 1.07% | 0.97% | 0.96% | 0.96 % | 0.97% | 0.96% |
| Total nonperforming assets to assets | 0.58% | 0.58% | 0.63% | 0.58% | 0.58% | 0.55 % | 0.58% | 0.58% |
| Allowance to nonperforming loans | 113.2% | 113.5% | 101.5% | 115.0% | 111.7% | 115.8 % | 113.2% | 111.7% |
| Originated loans(1) | $ 20,591,532 | $ 19,929,719 | $ 19,528,609 | $ 19,295,553 | $ 18,841,896 | $ 18,196,302 | $ 20,591,532 | $ 18,841,896 |
| Acquired loans(7) | 3,138,568 | 3,517,525 | 3,681,354 | 3,834,931 | 4,028,091 | 4,254,750 | 3,138,568 | 4,028,091 |
| Credit related discount on acquired loans(8) | (63,901) | (78,827) | (91,689) | (93,102) | (100,138) | (105,233) | (63,901) | (100,138) |
| Total Loans | $ 23,666,199 | $ 23,368,417 | $ 23,118,274 | $ 23,037,382 | $ 22,769,849 | $ 22,345,819 | $ 23,666,199 | $ 22,769,849 |
| (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 | |||||
| September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | |
| First Niagara Financial Group, Inc. capital ratios(1)(2): | ||||||
| Tier 1 risk based capital | 10.05% | 10.03% | 10.02% | 9.81% | 9.82% | 9.58% |
| Total risk based capital | 11.97% | 11.96% | 11.95% | 11.75% | 11.75% | 11.53% |
| Common equity tier 1 capital | 8.52% | 8.50% | 8.48% | N/A | N/A | N/A |
| Tier 1 common capital(3) | N/A | N/A | N/A | 8.20% | 8.19% | 7.93% |
| Leverage | 7.66% | 7.60% | 7.56% | 7.50% | 7.34% | 7.34% |
| Equity to assets | 10.50% | 10.55% | 10.60% | 10.62% | 10.79% | 13.16% |
| Tangible common equity to tangible assets(3) | 6.32% | 6.32% | 6.34% | 6.30% | 6.39% | 6.14% |
| Total risk weighted assets | $ 28,717 | $ 28,445 | $ 28,152 | $ 28,186 | $ 27,729 | $ 27,313 |
| First Niagara Bank, N.A capital ratios(1)(2): | ||||||
| Tier 1 risk based capital | 10.67% | 10.66% | 10.65% | 10.48% | 10.41% | 10.19% |
| Total risk based capital | 11.56% | 11.54% | 11.53% | 11.37% | 11.27% | 11.05% |
| Common equity tier 1 capital | 10.67% | 10.66% | 10.65% | N/A | N/A | N/A |
| Leverage | 8.12% | 8.07% | 8.03% | 8.01% | 7.78% | 7.80% |
| Total risk weighted assets | $ 28,633 | $ 28,359 | $ 28,068 | $ 28,146 | $ 27,686 | $ 27,272 |
| Number of branches | 394 | 394 | 394 | 411 | 411 | 411 |
| Full time equivalent employees | 5,397 | 5,364 | 5,322 | 5,572 | 5,768 | 5,874 |
| Share information and per share metrics: | ||||||
| Common shares outstanding | 354,788 | 354,890 | 353,717 | 353,388 | 355,423 | 355,483 |
| Preferred shares outstanding | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 |
| Treasury shares | 11,214 | 11,112 | 12,285 | 12,614 | 10,579 | 10,519 |
| Market price (NASDAQ: FNFG): | $ 10.21 | $ 9.44 | $ 8.84 | $ 8.43 | $ 8.33 | $ 8.74 |
| Book value per common share(4) | 10.82 | 10.77 | 10.80 | 10.71 | 10.72 | 13.54 |
| Tangible book value per common share(3)(4) | 6.84 | 6.77 | 6.78 | 6.67 | 6.66 | 6.32 |
| Price/Book | 94.36% | 87.65% | 81.85% | 78.71% | 77.71% | 64.55% |
| Price/Tangible book(1) | 149.27% | 139.44% | 130.38% | 126.39% | 125.08% | 138.29% |
| 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 | 53.33% | 53.33% | 66.67% | 47.06% | N/M | 42.11% |
| Dividend yield (annualized) | 3.11% | 3.40% | 3.67% | 3.77% | 3.81% | 3.67% |
| N/M Not meaningful. | ||||||
| (1) Represents an estimate as of September 30, 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 | Nine months ended | ||||||
| Third | Second | First | Fourth | Third | Second | September 30, | September 30, | |
| Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2015 | 2014 | |
| Financial ratios computed on an operating basis(1): | ||||||||
| Earnings per basic share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.19 | $ 0.19 | $ 0.45 | $ 0.55 |
| Earnings per diluted share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.19 | $ 0.19 | $ 0.45 | $ 0.55 |
| Weighted average shares outstanding - basic(2) | 351,293 | 351,126 | 350,741 | 350,444 | 350,381 | 350,229 | 351,055 | 350,174 |
| Weighted average shares outstanding - diluted(2) | 353,248 | 352,791 | 352,621 | 352,152 | 351,898 | 351,541 | 352,847 | 351,570 |
| Noninterest income as a percentage of net revenue(3) | 24.05% | 24.76% | 23.83% | 22.24% | 21.62% | 22.93% | 24.22% | 22.21% |
| Pre-tax, pre-provision income | 101,501 | 101,818 | 101,667 | 98,714 | 99,210 | 108,554 | 304,986 | 316,855 |
| Pre-tax, pre-provision income per diluted share | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.28 | $ 0.28 | $ 0.31 | $ 0.86 | $ 0.90 |
| Pre-tax, pre-provision return on average assets | 1.03% | 1.05% | 1.07% | 1.02% | 1.02% | 1.14% | 1.05% | 1.11% |
| Net interest margin(4) | 2.98% | 3.02% | 3.07% | 3.11% | 3.21% | 3.26% | 3.02% | 3.27% |
| Interest yield on average loans(4) | 3.64% | 3.73% | 3.75% | 3.78% | 3.80% | 3.89% | 3.70% | 3.89% |
| Rate paid on interest-bearing liabilities | 0.50% | 0.49% | 0.48% | 0.45% | 0.44% | 0.44% | 0.49% | 0.44% |
| Efficiency ratio | 70.7% | 70.9% | 70.5% | 71.5% | 71.5% | 69.2% | 70.7% | 69.8% |
| Effective tax rate | 26.0% | 24.7% | 30.0% | 3.7% | 10.3% | 14.5% | 27.0% | 14.9% |
| Return on average assets | 0.61% | 0.63% | 0.65% | 0.63% | 0.76% | 0.80% | 0.63% | 0.76% |
| Return on average equity | 5.78% | 5.90% | 6.12% | 5.82% | 5.76% | 6.01% | 5.93% | 5.76% |
| Return on average tangible equity(5) | 8.73% | 8.94% | 9.30% | 8.85% | 11.35% | 12.01% | 8.99% | 11.50% |
| Return on average common equity | 5.51% | 5.63% | 5.85% | 5.54% | 5.54% | 5.80% | 5.66% | 5.54% |
| Return on average tangible common equity(6) | 8.72% | 8.94% | 9.34% | 8.85% | 11.73% | 12.48% | 8.99% | 11.89% |
| Reconciliation of noninterest expense on operating basis to reported noninterest expense(1): | ||||||||
| Total noninterest expense on operating basis (Non-GAAP) | $ 245,433 | $ 247,899 | $ 243,521 | $ 248,246 | $ 249,461 | $ 244,115 | $ 736,853 | $ 731,956 |
| Restructuring charges | -- | -- | 17,517 | 9,066 | 2,364 | -- | 17,517 | 12,720 |
| Goodwill impairment | -- | -- | -- | -- | 1,100,000 | -- | -- | 1,100,000 |
| Deposit account remediation | -- | -- | -- | (23,000) | 45,000 | -- | -- | 45,000 |
| Total reported noninterest expense (GAAP) | $ 245,433 | $ 247,899 | $ 261,038 | $ 234,312 | $ 1,396,825 | $ 244,115 | $ 754,370 | $ 1,889,676 |
| Reconciliation of net operating income to net income(1): | ||||||||
| Net operating income (Non-GAAP) | $ 60,482 | $ 61,010 | $ 62,246 | $ 60,697 | $ 74,009 | $ 75,875 | $ 183,738 | $ 218,439 |
| Nonoperating income and expenses, net of tax: | ||||||||
| Restructuring charges | -- | -- | 10,861 | 6,364 | 1,555 | -- | 10,861 | 9,900 |
| Goodwill impairment | -- | -- | -- | -- | 963,267 | -- | -- | 963,267 |
| Deposit account remediation | -- | -- | -- | (14,734) | 29,233 | -- | -- | 29,233 |
| Total nonoperating expenses, net of tax | -- | -- | 10,861 | (8,370) | 994,055 | -- | 10,861 | 1,002,400 |
| Net income (loss) (GAAP) | $ 60,482 | $ 61,010 | $ 51,385 | $ 69,067 | $ (920,046) | $ 75,875 | $ 172,877 | $ (783,961) |
| 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) | $ 52,935 | $ 53,463 | $ 54,699 | $ 53,150 | $ 66,462 | $ 68,328 | $ 161,097 | $ 195,798 |
| Nonoperating income and expenses, net of tax: | ||||||||
| Restructuring charges | -- | -- | 10,861 | 6,364 | 1,555 | -- | 10,861 | 9,900 |
| Goodwill impairment | -- | -- | -- | -- | 963,267 | -- | -- | 963,267 |
| Deposit account remediation | -- | -- | -- | (14,734) | 29,233 | -- | -- | 29,233 |
| Total nonoperating income and expenses, net of tax | -- | -- | 10,861 | (8,370) | 994,055 | -- | 10,861 | 1,002,400 |
| Net income (loss) available to common stockholders (GAAP) | $ 52,935 | $ 53,463 | $ 43,838 | $ 61,520 | $ (927,593) | $ 68,328 | $ 150,236 | $ (806,602) |
| Computation of pre-tax,pre-provision income: | ||||||||
| Net interest income | $ 263,491 | $ 263,110 | $ 262,944 | $ 269,783 | $ 273,279 | $ 271,812 | $ 789,545 | $ 815,838 |
| Noninterest income | 83,443 | 86,607 | 82,244 | 77,177 | 75,392 | 80,857 | 252,294 | 232,973 |
| Noninterest expense | (245,433) | (247,899) | (261,038) | (234,312) | (1,396,825) | (244,115) | (754,370) | (1,889,676) |
| Pre-tax, pre-provision income (loss) (GAAP) | 101,501 | 101,818 | 84,150 | 112,648 | (1,048,154) | 108,554 | 287,469 | (840,865) |
| Add back: non-operating noninterest expenses (1) | -- | -- | 17,517 | (13,934) | 1,147,364 | -- | 17,517 | 1,157,720 |
| Pre-tax, pre-provision income (Non-GAAP)(1) | $ 101,501 | $ 101,818 | $ 101,667 | $ 98,714 | $ 99,210 | $ 108,554 | $ 304,986 | $ 316,855 |
| (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 | Nine months ended | ||||||
| Third | Second | First | Fourth | Third | Second | September 30, | September 30, | |
| Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2015 | 2014 | |
| Computation of Ending Tangible Assets: | ||||||||
| Total assets | $ 39,413,181 | $ 39,063,543 | $ 38,907,479 | $ 38,551,038 | $ 37,972,042 | $ 38,627,608 | $ 39,413,181 | $ 37,972,042 |
| Less: Goodwill and other intangibles | (1,400,199) | (1,404,201) | (1,410,800) | (1,417,005) | (1,423,437) | (2,528,481) | (1,400,199) | (1,423,437) |
| Tangible assets | $ 38,012,982 | $ 37,659,342 | $ 37,496,679 | $ 37,134,033 | $ 36,548,605 | $ 36,099,127 | $ 38,012,982 | $ 36,548,605 |
| Computation of Average Tangible Assets: | ||||||||
| Total assets | $ 39,051,359 | $ 38,913,219 | $ 38,706,545 | $ 38,317,930 | $ 38,591,115 | $ 38,212,597 | $ 38,891,638 | $ 38,186,952 |
| Less: Goodwill and other intangibles | (1,402,138) | (1,407,946) | (1,413,765) | (1,420,119) | (2,514,581) | (2,531,612) | (1,407,907) | (2,528,272) |
| Tangible assets | $ 37,649,221 | $ 37,505,273 | $ 37,292,780 | $ 36,897,811 | $ 36,076,534 | $ 35,680,985 | $ 37,483,731 | $ 35,658,680 |
| Computation of Ending Tangible Equity: | ||||||||
| Total stockholders' equity | $ 4,139,377 | $ 4,121,125 | $ 4,125,246 | $ 4,092,758 | $ 4,095,703 | $ 5,081,674 | $ 4,139,377 | $ 4,095,703 |
| Less: Goodwill and other intangibles | (1,400,199) | (1,404,201) | (1,410,800) | (1,417,005) | (1,423,437) | (2,528,481) | (1,400,199) | (1,423,437) |
| Tangible equity | $ 2,739,178 | $ 2,716,924 | $ 2,714,446 | $ 2,675,753 | $ 2,672,266 | $ 2,553,193 | $ 2,739,178 | $ 2,672,266 |
| Computation of Ending Tangible Common Equity: | ||||||||
| Total stockholders' equity | $ 4,139,377 | $ 4,121,125 | $ 4,125,246 | $ 4,092,758 | $ 4,095,703 | $ 5,081,674 | $ 4,139,377 | $ 4,095,703 |
| Less: Goodwill and other intangibles | (1,400,199) | (1,404,201) | (1,410,800) | (1,417,005) | (1,423,437) | (2,528,481) | (1,400,199) | (1,423,437) |
| Less: Preferred stockholders' equity | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) |
| Tangible common equity | $ 2,401,176 | $ 2,378,922 | $ 2,376,444 | $ 2,337,751 | $ 2,334,264 | $ 2,215,191 | $ 2,401,176 | $ 2,334,264 |
| Computation of Average Tangible Equity: | ||||||||
| Total stockholders' equity | $ 4,149,635 | $ 4,145,334 | $ 4,127,743 | $ 4,141,141 | $ 5,100,494 | $ 5,065,797 | $ 4,140,984 | $ 5,067,041 |
| Less: Goodwill and other intangibles | (1,402,138) | (1,407,946) | (1,413,765) | (1,420,119) | (2,514,581) | (2,531,612) | (1,407,907) | (2,528,272) |
| Tangible equity | $ 2,747,497 | $ 2,737,388 | $ 2,713,978 | $ 2,721,022 | $ 2,585,913 | $ 2,534,185 | $ 2,733,077 | $ 2,538,769 |
| Computation of Average Tangible Common Equity: | ||||||||
| Total stockholders' equity | $ 4,149,635 | $ 4,145,334 | $ 4,127,743 | $ 4,141,141 | $ 5,100,494 | $ 5,065,797 | $ 4,140,984 | $ 5,067,041 |
| Less: Goodwill and other intangibles | (1,402,138) | (1,407,946) | (1,413,765) | (1,420,119) | (2,514,581) | (2,531,612) | (1,407,907) | (2,528,272) |
| Less: Preferred stockholders' equity | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) | (338,002) |
| Tangible common equity | $ 2,409,495 | $ 2,399,386 | $ 2,375,976 | $ 2,383,020 | $ 2,247,911 | $ 2,196,183 | $ 2,395,075 | $ 2,200,767 |
| Computation of Tier 1 Common Capital: | ||||||||
| Tier 1 capital | N/A | N/A | N/A | $ 2,764,117 | $ 2,722,685 | $ 2,613,584 | N/A | $ 2,722,685 |
| Less: Qualifying restricted core capital elements | N/A | N/A | N/A | (113,785) | (113,556) | (113,330) | N/A | (113,556) |
| Less: Perpetual non-cumulative preferred stock | N/A | N/A | N/A | (338,002) | (338,002) | (338,002) | N/A | (338,002) |
| Tier 1 common capital (Non-GAAP) | N/A | N/A | N/A | $ 2,312,330 | $ 2,271,127 | $ 2,162,252 | N/A | $ 2,271,127 |