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First Niagara Reports Third Quarter 2012 Operating Net Income Per Share of $0.19

Highlights:

  • Non-GAAP Operating Net Income per Share of $0.19, a $0.02 Increase Over the Prior Quarter
  • Net Interest Margin Increases 28 Basis Points to 3.54%
  • Operating Revenues Increase 8%
  • Average Commercial Loans Increase 17% Over the Prior Quarter
  • 11th Consecutive Quarter of Double Digit Commercial Loan Growth
  • C&I Loans Increase 24%; Commercial Real Estate Loans Increase 14%
  • 15% Commercial Loan Growth in the New York Market; Continued Growth Across All Geographies
  • Fee Income Increases 22%
  • Mortgage Banking Revenues Increase 53% Over Prior Quarter
  • Strength in Capital Markets Activity and Fees Sustained
  • Core Deposit Platform Growth Continues
  • Transactional Deposits Increase to 31% of Total Deposits
  • Checking Account Production per Branch Increases 36% over Prior Year
  • GAAP EPS of $0.14 per Share Includes $29 million of Acquisition and Restructuring Charges

BUFFALO, N.Y., Oct. 19, 2012 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (Nasdaq:FNFG) today announced third quarter 2012 results reflecting continued strength and momentum in its regional banking business. The solid performance continues to be driven by sustained market share gains through new customer acquisition as well as deepening relationships with existing customers and growth in fee income.

"Our team continues to deliver differentiating results and outcomes and strong fundamental performance by helping our customers and communities Do Great Things," said John R. Koelmel, First Niagara President and Chief Executive Officer. "We have worked diligently to put the pieces together by assimilating a strong team and culture, an enviable footprint and franchise and strong ties to our growing base of customers and communities. As we look ahead, our entire organization – from top to bottom – is now singularly focused on running the business we have built and optimally executing our operating plan."

"First Niagara's lending franchise continues to deliver solid and differentiated fundamental performance throughout the continuing low-growth economic environment," said Gregory W. Norwood, Chief Financial Officer. "Our ability and continued success in gaining market share affords us the opportunity to be selective and discerning in credit underwriting. Further, the growth potential in our newer geographies coupled with the greater density in our Upstate New York markets combined with our enhanced fee generation services such as treasury management and online delivery channel are additional levers that will further improve our efficiency and profitability."

Third Quarter Performance

In the third quarter of 2012, First Niagara reported non-GAAP operating net income available to common shareholders of $66.5 million, or $0.19 per diluted share, compared to $0.17 per share in the second quarter of 2012 and $0.25 per diluted share in the third quarter of 2011. The decline in earnings per share from the year ago period was driven in large part by the June 2012 sale of $3.1 billion in mortgage backed securities (MBS) associated with the investment portfolio repositioning.

Total operating revenues of $366.5 million increased $27.8 million, or 8% over the second quarter of 2012. Net interest income was up $10.6 million, or 4%, from the prior quarter. Net interest margin increased by 28 basis points to 3.54% in the third quarter of 2012. Those increases include the benefits of the full quarter impact of the HSBC branch transaction and lower premium amortization on mortgage backed security prepayments partially offset by the loss of net interest income resulting from the June MBS sale.

Non-GAAP operating noninterest income increased 22% from the prior quarter primarily driven by the benefits of the HSBC branch acquisition and strong mortgage banking revenues.

Excluding loans acquired from HSBC, average commercial loans increased $463 million for the quarter, up 17% annualized over the prior three-month period, marking the eleventh consecutive quarter of organic double-digit average commercial portfolio growth. Indirect auto loan originations totaled $247 million in the third quarter, an increase of $76 million over the prior quarter, as that business unit continues to deliver profitable growth across its expanding dealer network.

The provision for credit losses totaled $22.2 million during the third quarter of 2012, including $12.1 million to support loan growth and $10.1 million to cover net charge-offs. Net charge-offs equaled 30 basis points of average originated loans in the third quarter of 2012 compared to 55 basis points in the prior quarter.

On a GAAP basis, First Niagara reported third quarter net income to common shareholders of $50.8 million, or $0.14 per diluted share, compared to a net loss to common shareholders of $18.5 million, or $0.05 per diluted share, in the second quarter of 2012. Reported GAAP results for the third quarter of 2012 include $29.4 million of acquisition and restructuring costs incurred primarily in connection with the HSBC branch acquisition and a $5.3 million gain related to the second quarter MBS sale.

Operating Results (Non-GAAP) Q3 2012 Q2 2012 Q3 2011
Net interest income $ 269.6 $ 259.0 $ 235.4
Provision for credit losses 22.2 28.1 14.5
Noninterest income 96.9 79.7 68.7
Noninterest expense 237.1 210.4 178.5
Operating net income before non-operating items 74.0 66.6 73.6
Preferred stock dividend 7.5 7.5 --
Operating net income available to common shareholders 66.5 59.1 73.6
Weighted average diluted shares outstanding 349.4 348.9 292.5
Operating earnings per diluted share $ 0.19 $ 0.17 $ 0.25
Reported Results (GAAP)
Operating net income before non-operating items $ 74.0 $ 66.6 $ 73.6
Gain on securities portfolio repositioning (a) 3.5 10.3 --
Non-operating expenses (b) 19.1 87.9 16.7
Net income (loss) 58.4 (10.9) 57.0
Preferred stock dividend 7.5 7.5 --
Net income (loss) available to common shareholders 50.8 (18.5) 57.0
Weighted average diluted shares outstanding 349.4 348.9 292.5
Earnings (loss) per diluted share $ 0.14 $ (0.05) $ 0.19

All amounts in millions except earnings per diluted share. The Non-GAAP/Operating Results table above summarizes the company's operating results excluding certain non-operating items. For a detailed reconciliation of non-GAAP measures, refer to the attached tables.

(a) Amount is shown net of tax and represents the gains recorded on the sale of $3.1 billion of mortgage-backed securities in the second and third quarters of 2012.

(b) Amounts are shown net of tax and represent expenses related to acquisition, integration, and restructuring.

Loans

Average total loans increased $540 million, or 13% annualized over the prior quarter, excluding loans acquired from HSBC on May 18. This organic increase from the prior quarter was driven by sustained strength in all commercial loan categories and indirect auto loans.

Average commercial loans increased $463 million, or 17% annualized over the prior quarter, excluding the HSBC impact. Commercial business (C&I) loans averaged $4.5 billion, or a 24% annualized increase over the prior quarter. Commercial real estate loans increased 14% annualized to $6.6 billion. Average other consumer loan balances increased $229 million and was driven by $247 million of indirect auto originations at net yields of approximately 3.5% during the quarter.

Including the impact of the HSBC branch transaction, average loans increased $1.3 billion, or 29% annualized over the prior quarter.

Deposits

The Company's strategic focus on customer acquisition, in particular increasing consumer and business checking balances, resulted in average transactional deposits, which include interest-bearing checking and non-interest bearing balances, increasing to 31% of the company's deposit base, compared to 25% a year ago. New checking account openings per branch increased an annualized 10% over the prior quarter and 36% over the prior year. The New York state franchise was a meaningful contributor at 32% as the increased branch density and positive brand positioning in these markets continues to drive significant new customer acquisitions.

Average noninterest-bearing deposits, excluding accounts acquired through the HSBC branch transaction, increased 17% over the prior quarter. Interest-bearing checking deposits increased 5% over the prior quarter, excluding the impact of the HSBC deposits. These increases were offset by the company's pricing strategy to reduce higher-cost money market and savings balances.

Net Interest Income

Net interest income of $269.6 million increased 4% from the prior quarter reflecting the favorable impacts of debt repayments using low-cost deposits acquired through the HSBC branch transaction as well as lower premium amortization expense on mortgage backed securities. Those benefits were partially offset by net interest income foregone on the sale of $3.1 billion of mortgage backed securities at the end of June. Tax equivalent net interest margin in the third quarter of 2012 was 3.54%, a 28 basis points increase over the prior quarter.

Average earning assets decreased 22% annualized compared to the prior quarter given the sale of the mortgage backed securities. Investment securities averaged $11.2 billion, a $2.8 billion decrease from the prior period. This decrease was offset by the $1.3 billion increase in average loans.

Credit Quality

At September 30, 2012, the allowance for loan losses was $149.9 million compared to $138.5 million at June 30, 2012. Information for both the originated and acquired portfolios follows.

Q3 2012 Q2 2012
$ in millions Originated Acquired Total Originated Acquired Total
Provision for loan losses* $ 21.4 $ 0.4 $ 21.8 $ 25.4 $ 2.4 $ 27.8
Net charge-offs 9.1 1.0 10.1 15.1 0.7 15.8
NCOs/ Avg Loans 0.30% 0.06% 0.21% 0.55% 0.04% 0.36%
Total loans** $ 12,232 $ 7,086 $ 19,318 $ 11,392 $ 7,600 $ 18,992
(*) Excludes provision for unfunded commitments of $0.4 million and $0.3 million in 3Q12 and 2Q12, respectively
(**) Acquired loans before associated credit discount; see accompanying tables for further information

Originated loans

The provision for loan losses on originated loans totaled $21.4 million, down $4 million from the prior quarter. The company provided $12.3 million in excess of net charge-offs to support the ongoing momentum in originated loans. Net charge-offs decreased significantly to $9.1 million or 30 basis points of average originated loans from $15.1 million or 55 basis points in the prior quarter.

At the end of the third quarter, nonperforming assets to total assets were 0.42%, comparable to the prior quarter. Nonperforming originated loans as a percentage of originated loans decreased slightly to 0.93% at September 30, 2012 and totaled $114.2 million. At September 30, 2012, the allowance for loan losses on originated loans totaled $147.2 million or 1.20% of such loans, compared to $135.2 million or 1.19% of loans at June 30, 2012.

Acquired loans

The provision for losses on acquired loans totaled $0.4 million, compared to $2.4 million in the prior quarter. Net charge-offs on those portfolios totaled $1.0 million during the quarter, compared to $0.7 million in the prior period. At September 30, 2012, the allowance for loan losses on acquired loans totaled $2.7 million, compared to $3.3 million at June 30, 2012. Acquired nonperforming loans totaled $28.2 million, up from $19.4 million at June 30, 2012. At September 30, 2012, remaining credit marks available to absorb losses on a pool-by-pool basis totaled $212 million.

Fee Income

Third quarter 2012 non-GAAP operating noninterest income of $96.9 million increased 22% or $17.2 million compared to the prior quarter. The increase was driven by stronger mortgage banking revenues as well as the full quarter benefit of the HSBC transaction. Deposit service charges increased $5.0 million or 23% over the prior quarter primarily with the benefit of the accounts acquired from HSBC. Mortgage banking revenues increased $3.8 million or 53% over the prior quarter driven by higher gain-on-sale margins as well as sustained strength in origination volumes. Merchant and card fees increased 30% over the prior quarter to $12.0 million reflecting the upside of the credit card accounts acquired from HSBC.

On a GAAP basis, noninterest income totaled $102.2 million, including a $5.3 million gain recognized on the sale of mortgage-backed securities in the second quarter. The gain represents the company's share of the sale proceeds in excess of the floor price set on the date of original sale to a third party.

Noninterest Expense

Third quarter non-GAAP operating noninterest expense was $237.1 million, up $26.7 million, or 13% over the second quarter of 2012. The increase primarily reflects the full quarter cost of operating the acquired HSBC branches. The non-GAAP operating efficiency ratio increased to 64.7% compared to 62.1% in the prior quarter given the impact of the loss of revenue attributed to the MBS sale.

On a GAAP basis, noninterest expense for the second quarter was $266.5 million, including $29.4 million in acquisition and restructuring expenses primarily associated with the HSBC branch transaction.

Capital

At September 30, 2012, the company's estimated consolidated Total Risk Based capital and Tier 1 Common Risk Based capital ratios were 11.5% and 7.6%, 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 430 branches, approximately $36 billion in assets, $28 billion in deposits, and approximately 6,000 employees providing financial services to individuals, families and businesses across Upstate New York, Pennsylvania, Connecticut and Massachusetts. For more information, visit www.firstniagara.com.

Investor Call

A conference call will be held at 10:30 a.m. Eastern Time on Friday, October 19, 2012 to discuss the company's financial results. Those wishing to participate in the call may dial toll-free 1-888-606-8413 with the passcode: FNFG. Presentation slides will be used during the earnings conference call and is available under the investor relations tab of our website at www.firstniagara.com. A replay of the call will be available until November 2, 2012 by dialing 1-866-353-3016, passcode: 7253.

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)
2012 2011 Nine months ended
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
September 30,
2012
September 30,
2011
Interest income:
Loans and leases $ 211,767 $ 200,725 $ 189,385 $ 195,434 $ 192,772 $ 601,877 $ 509,230
Investment securities and other 90,101 99,116 101,395 96,472 94,375 290,612 264,171
Total interest income 301,868 299,841 290,780 291,906 287,147 892,489 773,401
Interest expense:
Deposits 18,358 16,391 14,998 21,521 24,771 49,747 61,716
Borrowings 13,905 24,437 33,411 27,872 26,947 71,753 72,951
Total interest expense 32,263 40,828 48,409 49,393 51,718 121,500 134,667
Net interest income 269,605 259,013 242,371 242,513 235,429 770,989 638,734
Provision for credit losses 22,200 28,100 20,000 13,400 14,500 70,300 44,707
Net interest income after provision 247,405 230,913 222,371 229,113 220,929 700,689 594,027
Noninterest income:
Deposit service charges 26,422 21,433 17,037 18,049 18,413 64,892 48,095
Insurance commissions 18,764 17,072 16,833 15,440 16,886 52,669 49,685
Merchant and card fees 12,014 9,271 5,528 5,044 8,933 26,813 24,209
Wealth management services 11,069 9,207 9,039 8,179 7,933 29,315 22,550
Mortgage banking 10,974 7,174 5,649 5,279 5,254 23,797 9,903
Capital markets income 6,381 6,831 6,539 2,746 2,687 19,751 5,603
Lending and leasing 3,730 4,245 3,123 3,103 3,399 11,098 8,322
Bank owned life insurance 3,449 3,848 3,387 3,302 2,742 10,684 7,827
Other income 9,400 16,517 2,773 2,543 2,408 28,690 5,430
Total noninterest income 102,203 95,598 69,908 63,685 68,655 267,709 181,624
Noninterest expense:
Salaries and benefits 115,484 104,507 96,477 88,796 89,131 316,468 253,099
Occupancy and equipment 25,694 24,089 22,017 22,580 20,434 71,800 55,583
Technology and communications 28,110 24,434 19,713 18,942 16,634 72,257 43,434
Marketing and advertising 8,954 6,676 6,763 7,724 7,554 22,393 14,126
Professional services 11,193 9,263 8,895 11,669 9,171 29,351 24,348
Amortization of intangibles 14,506 9,839 6,466 6,586 6,896 30,811 18,958
FDIC premiums 8,850 10,552 6,133 6,097 10,301 25,535 22,763
Merger and acquisition integration expenses 29,404 131,460 12,970 6,149 9,008 173,834 92,012
Restructuring charges -- 3,750 2,703 13,496 16,326 6,453 29,038
Other expense 24,347 21,069 18,041 20,132 18,416 63,457 50,801
Total noninterest expense 266,542 345,639 200,178 202,171 203,871 812,359 604,162
Income (loss) before income tax 83,066 (19,128) 92,101 90,627 85,713 156,039 171,489
Income tax expense (benefit) 24,682 (8,204) 32,236 32,166 28,732 48,714 56,040
Net income (loss) 58,384 (10,924) 59,865 58,461 56,981 107,325 115,449
Preferred stock dividend 7,547 7,547 5,115 -- -- 20,209 --
Net income (loss) available to common stockholders $ 50,837 $ (18,471) $ 54,750 $ 58,461 $ 56,981 $ 87,116 $ 115,449
Financial Ratios:
Earnings (loss) per basic share $ 0.15 $ (0.05) $ 0.16 $ 0.19 $ 0.19 $ 0.25 $ 0.44
Earnings (loss) per diluted share 0.14 (0.05) 0.16 0.19 0.19 0.25 0.44
Weighted average shares outstanding - basic(1) 349,001 348,941 348,823 304,065 292,211 348,956 260,259
Weighted average shares outstanding - diluted(1) 349,371 348,941 349,069 304,341 292,503 349,248 260,689
Net revenue(2) $ 371,808 $ 354,611 $ 312,279 $ 306,198 $ 304,084 $ 1,038,698 $ 820,358
Noninterest income as a percentage of net revenue(2) 27.49% 26.96% 22.39% 20.80% 22.58% 25.77% 22.14%
Pre-tax, pre-provision income(3) $ 105,266 $ 8,972 $ 112,101 $ 104,027 $ 100,213 $ 226,339 $ 216,196
Pre-tax, pre-provision income per diluted share(3) $ 0.30 $ 0.03 $ 0.32 $ 0.34 $ 0.34 $ 0.65 $ 0.83
Pre-tax, pre-provision return on average assets(3) 1.19% 0.10% 1.36% 1.30% 1.28% 0.86% 1.07%
Net interest margin(4) 3.54% 3.26% 3.34% 3.48% 3.48% 3.38% 3.63%
Interest yield on average loans(4) 4.47% 4.59% 4.62% 4.76% 4.73% 4.56% 4.91%
Rate paid on interest-bearing liabilities(4) 0.51% 0.61% 0.79% 0.82% 0.87% 0.63% 0.87%
Efficiency ratio 71.69% 97.47% 64.10% 66.03% 67.04% 78.21% 73.65%
Effective tax rate 29.7% 42.9% 35.0% 35.5% 33.5% 31.2% 32.7%
Return on average assets(5) 0.66 % (0.12)% 0.73% 0.73% 0.73% 0.41% 0.57%
Return on average equity(5) 4.77 % (0.90)% 4.96% 5.54% 5.61% 2.95% 4.34%
Return on average tangible equity(3)(5) 10.34 % (1.64)% 7.90% 9.75% 10.28% 5.40% 7.76%
Return on average common equity 4.46 % (1.64)% 4.88% 5.63% 5.61% 2.57% 4.34%
Return on average tangible common equity(3) 10.60 % (3.18)% 8.12% 10.03% 10.28% 5.02% 7.76%
(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)
2012 2011
September 30, June 30, March 31, December 31, September 30,
Cash and cash equivalents $ 447,087 $ 488,227 $ 370,380 $ 836,555 $ 332,437
Investment securities:
Available for sale 10,579,970 9,937,271 12,248,058 9,348,296 8,349,237
Held to maturity 1,387,763 1,463,872 2,503,156 2,669,630 2,830,744
FHLB and FRB common stock 373,311 329,555 499,328 358,159 331,747
Total investment securities 12,341,044 11,730,698 15,250,542 12,376,085 11,511,728
Loans held for sale 117,375 101,596 102,513 94,484 79,820
Loans and leases:
Commercial:
Real estate 6,835,971 6,710,009 6,369,098 6,244,381 6,148,988
Business 4,682,154 4,514,537 4,108,363 3,771,649 3,588,733
Total commercial loans 11,518,125 11,224,546 10,477,461 10,016,030 9,737,721
Consumer:
Residential real estate 3,870,756 4,037,045 3,881,003 4,012,267 4,171,374
Home equity 2,661,429 2,683,236 2,149,135 2,165,988 2,177,772
Indirect auto 419,258 185,774 -- -- --
Credit cards 308,387 304,368 -- -- --
Other consumer 328,571 328,547 283,320 278,298 278,499
Total consumer loans 7,588,401 7,538,970 6,313,458 6,456,553 6,627,645
Total loans and leases 19,106,526 18,763,516 16,790,919 16,472,583 16,365,366
Allowance for loan losses 149,933 138,516 126,746 120,100 112,749
Loans and leases, net 18,956,593 18,625,000 16,664,173 16,352,483 16,252,617
Bank owned life insurance 401,211 397,739 395,944 392,468 416,449
Goodwill and other intangibles 2,626,625 2,631,605 1,796,394 1,803,240 1,812,628
Other assets 983,999 1,130,891 937,859 955,300 803,828
Total assets $ 35,873,934 $ 35,105,756 $ 35,517,805 $ 32,810,615 $ 31,209,507
Deposits:
Savings accounts $ 3,941,528 $ 4,103,773 $ 2,554,720 $ 2,621,016 $ 2,641,723
Interest-bearing checking 4,090,322 3,887,568 2,431,672 2,259,576 2,028,052
Money market deposits 10,801,280 10,919,766 7,100,646 7,220,902 7,507,189
Noninterest-bearing deposits 4,658,374 4,774,764 3,200,824 3,335,356 3,095,283
Certificates of deposit 4,206,192 4,211,116 3,741,525 3,968,265 4,351,930
Total deposits 27,697,696 27,896,987 19,029,387 19,405,115 19,624,177
Short-term borrowings 1,995,610 958,044 6,353,189 2,208,845 1,156,711
Long-term borrowings 732,339 732,263 4,688,251 5,918,276 5,928,632
Other liabilities 532,868 700,249 571,532 480,201 499,312
Total liabilities 30,958,513 30,287,543 30,642,359 28,012,437 27,208,832
Preferred stockholders' equity 338,002 338,002 338,002 338,002 --
Common stockholders' equity 4,577,419 4,480,211 4,537,444 4,460,176 4,000,675
Total stockholders' equity 4,915,421 4,818,213 4,875,446 4,798,178 4,000,675
Total liabilities and stockholders' equity $ 35,873,934 $ 35,105,756 $ 35,517,805 $ 32,810,615 $ 31,209,507
Selected balance sheet information:
Total interest-earning assets(1) $ 31,316,470 $ 30,403,035 $ 31,959,556 $ 29,284,139 $ 27,805,974
Total interest-bearing liabilities 25,767,271 24,812,530 26,870,002 24,196,880 23,614,238
Net interest-earning assets $ 5,549,199 $ 5,590,505 $ 5,089,554 $ 5,087,259 $ 4,191,736
Tangible common equity(2) $ 1,950,794 $ 1,848,606 $ 2,741,050 $ 2,656,936 $ 2,188,047
Unrealized gain on securities, net of tax 204,347 133,430 152,408 105,276 116,666
Total core deposits $ 23,491,504 $ 23,685,871 $ 15,287,862 $ 15,436,850 $ 15,272,247
Originated loans(3) $ 12,232,568 $ 11,392,158 $ 10,517,021 $ 9,876,005 $ 9,425,194
Acquired loans(4) 7,085,839 7,600,213 6,459,798 6,801,689 7,195,250
Credit related discount on acquired loans(5) (211,881) (228,855) (185,900) (205,111) (255,078)
Total Loans $ 19,106,526 $ 18,763,516 $ 16,790,919 $ 16,472,583 $ 16,365,366
(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) Originated loans represent total loans excluding acquired loans.
(4) Represents the carrying value of acquired loans plus the principal not expected to be collected.
(5) 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, 2012 June 30, 2012 September 30, 2011 September 30, 2012 September 30, 2011
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)
Interest-earning assets:
Loans and leases(2)
Commercial:
Real estate $ 6,783 $ 80 4.60% $ 6,501 $ 80 4.88% $ 6,143 $ 82 5.23% $ 6,529 $ 239 4.81% $ 5,467 $ 223 5.39%
Business 4,609 45 3.81 4,293 44 4.03 3,424 35 3.95 4,274 129 3.96 3,056 98 4.23
Total commercial loans 11,392 125 4.28 10,794 124 4.54 9,567 117 4.78 10,803 368 4.48 8,523 321 4.97
Consumer:
Residential real estate 3,962 40 4.03 3,964 40 4.07 4,227 47 4.49 3,957 123 4.13 3,269 113 4.60
Home equity 2,672 30 4.42 2,412 27 4.42 2,167 25 4.55 2,415 80 4.42 1,908 65 4.56
Indirect auto 301 3 3.64 84 1 4.16 -- -- -- 131 4 3.86 -- -- --
Credit cards 308 9 11.31 160 5 11.58 -- -- -- 165 14 11.31 -- -- --
Other consumer 329 7 8.80 283 6 8.12 277 5 6.81 285 17 8.07 272 14 6.93
Total consumer loans 7,572 88 4.64 6,903 78 4.55 6,671 77 4.58 6,953 237 4.56 5,449 192 4.71
Total loans and leases 18,964 213 4.47 17,697 202 4.59 16,238 194 4.73 17,756 605 4.56 13,972 513 4.91
Residential MBS 5,677 40 2.81 8,982 52 2.35 8,748 73 3.40 7,729 158 2.72 8,111 217 3.57
Commercial MBS 1,895 19 3.93 1,867 18 3.94 598 5 3.60 1,822 54 3.95 411 12 3.90
Other investment securities 3,645 29 3.21 3,183 27 3.43 1,594 18 4.44 3,038 76 3.35 1,341 42 4.11
Total securities, at cost 11,217 88 3.13 14,032 98 2.81 10,940 97 3.56 12,589 288 3.05 9,863 271 3.65
Money market and other investments 558 5 3.56 818 5 2.20 411 3 2.34 682 13 2.60 333 7 2.81
Total interest-earning assets 30,739 $ 306 3.96% 32,547 $ 305 3.77% 27,589 $ 294 4.22% 31,027 $ 907 3.90% 24,168 $ 791 4.37%
Goodwill and other intangibles 2,627 2,207 1,828 2,213 1,562
Other noninterest-earning assets 1,938 1,746 1,566 1,737 1,373
Total assets $ 35,304 $ 36,500 $ 30,983 $ 34,977 $ 27,103
Interest-bearing liabilities:
Deposits
Savings accounts $ 4,026 $ 2 0.20% $ 3,302 $ 1 0.14% $ 2,699 $ 2 0.25% $ 3,300 $ 3 0.14% $ 2,174 $ 4 0.24%
Interest-bearing checking 3,871 1 0.06 3,095 1 0.08 2,025 1 0.13 3,066 2 0.08 1,910 2 0.12
Money market deposits 10,899 8 0.29 9,125 6 0.28 7,148 11 0.65 9,071 19 0.28 6,197 27 0.58
Certificates of deposit 4,083 8 0.75 4,019 8 0.83 4,444 11 0.96 3,977 25 0.85 4,022 29 0.97
Total interest bearing deposits 22,879 19 0.32% 19,541 16 0.34% 16,316 25 0.60% 19,414 50 0.34% 14,303 62 0.58%
Borrowings
Short-term borrowings 1,666 1 0.36% 5,046 7 0.55% 1,303 2 0.46% 3,442 15 0.56% 1,550 4 0.38%
Long-term borrowings 732 12 6.74 2,433 18 2.91 6,048 25 1.67 2,825 57 2.70 4,897 69 1.87
Total borrowings 2,398 13 2.31 7,479 24 1.31 7,351 27 1.45 6,267 72 1.53 6,447 73 1.51
Total interest-bearing liabilities 25,277 $ 32 0.51% 27,020 $ 41 0.61% 23,667 $ 52 0.87% 25,681 $ 122 0.63% 20,750 $ 135 0.87%
Noninterest-bearing deposits 4,618 3,835 2,857 3,838 2,433
Other noninterest-bearing liabilities 536 765 431 590 367
Total liabilities 30,431 31,620 26,955 30,110 23,550
Total stockholders' equity 4,873 4,880 4,028 4,868 3,553
Total liabilities and stockholders' equity $ 35,304 $ 36,500 $ 30,983 $ 34,977 $ 27,103
Net interest income (FTE) $ 274 $ 264 $ 242 $ 785 $ 656
Taxable Equivalent Adjustment(1) 4 5 7 14 17
Total core deposits $ 23,414 $ 11 0.18% $ 19,357 $ 8 0.17% $ 14,729 $ 14 0.38% $ 19,275 $ 24 0.17% $ 12,714 $ 32 0.34%
Total deposits 27,497 19 0.27% 23,376 16 0.28% 19,173 25 0.51% 23,252 50 0.29% 16,736 62 0.49%
Tax equivalent net interest rate spread 3.45% 3.16% 3.35% 3.27% 3.50%
Tax equivalent net interest rate margin 3.54% 3.26% 3.48% 3.38% 3.63%
(1) Tax equivalent interest income is calculated based upon a 35% effective tax rate.
(2) Includes nonaccrual loans.
First Niagara Financial Group, Inc.
Allowance for Loans and Lease Losses & Asset Quality
(in thousands)
2012 2011 Nine months ended
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
September 30,
2012
September 30,
2011
Beginning balance $ 138,516 $ 126,746 $ 120,100 $ 112,749 $ 107,028 $ 120,100 $ 95,354
Net loan (charge-offs) recoveries:
Commercial real estate $ (1,791) $ (2,384) $ (5,994) $ 212 $ (5,580) $ (10,169) $ (10,373)
Commercial business (6,077) (10,958) (4,143) (4,665) (2,123) (21,178) (9,953)
Residential real estate (396) (155) (1,120) (318) 171 (1,671) (668)
Home equity (401) (1,536) (1,161) (268) (223) (3,098) (1,833)
Other consumer (1,406) (805) (836) (796) (370) (3,047) (963)
Total net loan charge-offs $ (10,071) $ (15,838) $ (13,254) $ (5,835) $ (8,125) $ (39,163) $ (23,790)
Provision for loan losses 21,800 27,803 19,900 13,186 13,846 69,503 41,185
Allowance related to loans sold (312) (195) -- -- -- (507) --
Ending balance $ 149,933 $ 138,516 $ 126,746 $ 120,100 $ 112,749 $ 149,933 $ 112,749
Supplemental information
Allowance to loans 0.78% 0.74% 0.75% 0.73% 0.69% 0.78% 0.69%
Allowance for originated loans to originated loans(1) 1.20% 1.19% 1.19% 1.20% 1.20% 1.20% 1.20%
Net charge-offs to average loans (annualized)
Commercial real estate 0.11% 0.15% 0.38% -0.01% 0.36% 0.21% 0.25%
Commercial business 0.53% 1.02% 0.42% 0.51% 0.25% 0.66% 0.43%
Total commercial loans 0.28% 0.49% 0.40% 0.18% 0.32% 0.39% 0.32%
Residential real estate 0.04% 0.02% 0.11% 0.03% -0.02% 0.06% 0.03%
Home equity 0.06% 0.25% 0.22% 0.05% 0.04% 0.17% 0.13%
Other consumer 0.60% 0.61% 1.20% 1.14% 0.53% 0.70% 0.47%
Total consumer loans 0.12% 0.15% 0.20% 0.08% 0.03% 0.15% 0.08%
Total loans 0.21% 0.36% 0.32% 0.14% 0.20% 0.29% 0.23%
Net charge-offs of originated loans to average originated loans (annualized)(1)
Commercial real estate 0.12% 0.18% 0.16% -0.05% 0.59% 0.15% 0.37%
Commercial business 0.64% 1.25% 0.54% 0.67% 0.34% 0.82% 0.56%
Total commercial loans 0.36% 0.66% 0.32% 0.25% 0.49% 0.45% 0.45%
Residential real estate 0.09% 0.04% 0.27% 0.08% -0.04% 0.13% 0.05%
Home equity 0.13% 0.51% 0.40% 0.10% 0.08% 0.35% 0.25%
Other consumer 0.59% 0.81% 1.25% 1.51% 0.93% 0.76% 0.90%
Total consumer loans 0.18% 0.28% 0.38% 0.17% 0.06% 0.27% 0.17%
Total loans 0.30% 0.55% 0.34% 0.22% 0.35% 0.40% 0.36%
Nonperforming loans:
Originated:
Commercial real estate $ 46,413 $ 46,881 $ 44,749 $ 43,119 $ 41,295 $ 46,413 $ 41,295
Commercial business 37,375 30,714 39,682 20,173 18,839 37,375 18,839
Residential real estate 21,377 23,058 22,021 18,668 15,555 21,377 15,555
Home equity 8,084 8,119 7,071 6,790 5,428 8,084 5,428
Other consumer 938 926 697 1,048 769 938 769
Total originated nonperforming loans 114,187 109,698 114,220 89,798 81,886 114,187 81,886
Total acquired nonperforming loans(2) 28,193 19,374 19,041 -- -- 28,193 --
Total nonperforming loans 142,380 129,072 133,261 89,798 81,886 142,380 81,886
Real estate owned 9,669 10,632 7,202 4,482 9,392 9,669 9,392
Total nonperforming assets $ 152,049 $ 139,704 $ 140,463 $ 94,280 $ 91,278 $ 152,049 $ 91,278
Accruing troubled debt restructurings (TDR) $ 55,732 $ 42,140 $ 42,358 $ 43,888 $ 45,282 $ 45,518 $ 45,282
Loans 90 days past due still accruing(3) 145,323 125,668 116,810 143,237 143,270 145,323 143,270
Total classified loans(4) 693,006 732,762 753,536 748,375 692,961 693,006 692,961
Total criticized loans(5) $ 990,670 $ 1,030,471 $ 1,044,731 $ 1,144,222 $ 1,268,879 $ 990,670 $ 1,268,879
Total nonperforming loans to loans 0.75% 0.69% 0.79% 0.55% 0.50% 0.75% 0.50%
Total nonperforming originated loans to originated loans(1) 0.93% 0.96% 1.09% 0.91% 0.87% 0.93% 0.87%
Total nonperforming assets to loans and real estate owned 0.80% 0.74% 0.84% 0.57% 0.56% 0.80% 0.56%
Total nonperforming assets to assets 0.42% 0.40% 0.40% 0.29% 0.29% 0.42% 0.29%
Allowance to nonperforming loans 105.3% 107.3% 95.1% 133.7% 137.7% 105.3% 137.7%
Texas ratio(6) 14.16% 13.35% 8.97% 8.55% 10.19% 14.16% 10.19%
(1) Originated loans represent total loans excluding acquired loans.
(2) Nonperforming acquired loans include certain lines of credit that are considered nonaccruing. The remaining credit discount, recorded at acquisition, is adequate to cover losses on these balances.
(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. Amounts for the first and second quarter of 2012 have been revised to include matured loans 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 "Classification of Assets" in our Annual Report on 10-K for the year ended December 31, 2011.
(5) Beginning in the third quarter of 2011, criticized loans include consumer loans when they are 90 days or more past due. Prior to the third quarter of 2011, criticized loans include consumer loans when they are 60 days or more past due. The impact of the change at September 30, 2011 was a reduction of criticized loans by $24 million. Criticized loans include special mention, substandard, doubtful, and loss.
(6) Represents ratio computed 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.
First Niagara Financial Group, Inc.
Key Statistics
(Share counts in thousands)
2012 2011
September 30, June 30, March 31, December 31, September 30,
First Niagara Financial Group, Inc capital ratios:
Tier 1 risk based capital 9.51% 9.40% 14.66% (1) 15.60% (1) 11.90%
Tier 1 common capital(2) 7.59% 7.41% 12.47% (1) 13.23% (1) 11.29%
Total risk based capital 11.48% 11.37% 16.75% (1) 17.84% (1) 12.56%
Leverage 6.83% 6.32% 9.67% (1) 9.97% (1) 7.42%
Equity to assets 13.70% 13.72% 13.73% (1) 14.62% (1) 12.82%
Tangible common equity to tangible assets(2) 5.87% 5.69% 8.13% (1) 8.57% (1) 7.44%
First Niagara Bank, N.A capital ratios:
Tier 1 risk based capital 10.19% 9.63% 14.69% (1) 14.66% (1) 11.51%
Total risk based capital 10.88% 10.57% 15.66% (1) 16.47% (1) 12.17%
Leverage 7.32% 6.48% 9.69% (1) 9.38% (1) 7.17%
Number of branches 432 452 334 333 332
Full time equivalent employees 6,036 6,103 4,753 4,827 4,712
Share information and per share metrics:
Common shares outstanding 352,632 352,665 351,936 351,834 294,898
Preferred shares outstanding 14,000 14,000 14,000 14,000 --
Treasury shares 13,370 13,337 14,066 14,168 14,192
Market price (NASDAQ: FNFG): $ 8.07 $ 7.65 $ 9.84 $ 8.63 $ 9.15
Book value per share(3) 13.11 12.84 13.00 12.79 13.72
Tangible book value per share(2)(3) 5.59 5.30 7.86 7.62 7.50
Price/Book 61.56% 59.58% 75.69% 67.47% 66.69%
Price/Tangible book(2) 144.36% 144.34% 125.19% 113.25% 122.00%
Common stock dividends $ 0.08 $ 0.08 $ 0.08 $ 0.16 $ 0.16
Preferred stock dividends 0.54 0.54 0.37 -- --
Dividend payout ratio 53.33% N/M 50.00% 84.21% 84.21%
Dividend yield (annualized) 3.94% 4.21% 3.27% 7.36% 6.94%
N/M Not meaningful
(1) Ratios reflect the impact of our capital raise completed in December 2011, the proceeds of which were used to consummate the acquisition of branches from HSBC Bank-USA, National Association in May 2012.
(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) 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)
2012 2011 Nine months ended
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
September 30,
2012
September 30,
2011
Financial ratios computed on an operating basis(1):
Earnings per basic share $ 0.19 $ 0.17 $ 0.19 $ 0.24 $ 0.25 $ 0.54 $ 0.75
Earnings per diluted share 0.19 0.17 0.19 0.24 0.25 0.54 0.75
Weighted average shares outstanding - basic(2) 349,001 348,941 348,823 304,065 292,211 348,956 260,259
Weighted average shares outstanding - diluted(2) 349,371 348,941 349,069 304,341 292,503 349,248 260,689
Pre-tax, pre-provision income 129,333 128,287 127,774 123,672 125,547 385,394 337,246
Pre-tax, pre-provision income per diluted share 0.37 0.37 0.37 0.41 0.43 1.10 1.29
Pre-tax, pre-provision return on average assets 1.46% 1.41% 1.55% 1.55% 1.61% 1.47% 1.66%
Net interest margin(3) 3.54% 3.26% 3.34% 3.48% 3.48% 3.38% 3.63%
Interest yield on average loans(3) 4.47% 4.59% 4.62% 4.76% 4.73% 4.56% 4.91%
Rate paid on interest-bearing liabilities(3) 0.51% 0.61% 0.79% 0.82% 0.87% 0.63% 0.87%
Efficiency ratio 64.71% 62.13% 59.08% 59.61% 58.71% 62.12% 58.89%
Effective tax rate 30.9% 33.5% 35.0% 34.7% 33.7% 33.1% 33.5%
Noninterest income as a percentage of net revenue(4) 26.43% 23.53% 22.39% 20.80% 22.58% 24.22% 22.14%
Return on average assets 0.83% 0.73% 0.85% 0.90% 0.94% 0.80% 0.96%
Return on average equity 6.04% 5.49% 5.81% 6.82% 7.25% 5.78% 7.33%
Return on average tangible equity(5) 13.11% 10.03% 9.24% 12.02% 13.28% 10.60% 13.08%
Return on average common equity 5.83% 5.23% 5.79% 6.93% 7.25% 5.62% 7.33%
Return on average tangible common equity(6) 13.86% 10.18% 9.63% 12.36% 13.28% 10.98% 13.08%
Reconciliation of noninterest income on operating basis to reported noninterest income(1):
Total noninterest income on operating basis (Non-GAAP) $ 96,866 $ 79,703 $ 69,908 $ 63,685 $ 68,655 $ 246,477 $ 181,624
Gain on securities portfolio repositioning 5,337 15,895 -- -- -- 21,232 --
Total reported noninterest income (GAAP) 102,203 95,598 69,908 63,685 68,655 267,709 181,624
Reconciliation of noninterest expense on operating basis to reported noninterest expense(1):
Total noninterest expense on operating basis (Non-GAAP) $ 237,138 $ 210,429 $ 184,505 $ 182,526 $ 178,537 $ 632,072 $ 483,112
Merger and acquisition integration expenses 29,404 131,460 12,970 6,149 9,008 173,834 92,012
Restructuring charges -- 3,750 2,703 13,496 16,326 6,453 29,038
Total reported noninterest expense (GAAP) $ 266,542 $ 345,639 $ 200,178 $ 202,171 $ 203,871 $ 812,359 $ 604,162
Reconciliation of net operating income to net income(1):
Net operating income (Non-GAAP) $ 74,027 $ 66,630 $ 70,053 $ 72,057 $ 73,645 $ 210,710 $ 194,661
Nonoperating income and expenses, net of tax:
Gain on securities portfolio repositioning (3,469) (10,331) -- -- -- (13,800) --
Merger and acquisition integration expenses 19,112 85,448 8,431 4,256 5,925 112,991 60,164
Restructuring charges -- 2,437 1,757 9,340 10,739 4,194 19,048
Total nonoperating expenses, net of tax 15,643 77,554 10,188 13,596 16,664 103,385 79,212
Net income (GAAP) $ 58,384 $ (10,924) $ 59,865 $ 58,461 $ 56,981 $ 107,325 $ 115,449
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) $ 66,480 $ 59,083 $ 64,938 $ 72,057 $ 73,645 $ 190,501 $ 194,661
Nonoperating income and expenses, net of tax:
Gain on securities portfolio repositioning (3,469) (10,331) -- -- -- (13,800) --
Merger and acquisition integration expenses 19,112 85,448 8,431 4,256 5,925 112,991 60,164
Restructuring charges -- 2,437 1,757 9,340 10,739 4,194 19,048
Total nonoperating income and expenses, net of tax 15,643 77,554 10,188 13,596 16,664 103,385 79,212
Net income available to common stockholders (GAAP) $ 50,837 $ (18,471) $ 54,750 $ 58,461 $ 56,981 $ 87,116 $ 115,449
Computation of pre-tax,pre-provision income:
Net interest income $ 269,605 $ 259,013 $ 242,371 $ 242,513 $ 235,429 $ 770,989 $ 638,734
Noninterest income 102,203 95,598 69,908 63,685 68,655 267,709 181,624
Noninterest expense (266,542) (345,639) (200,178) (202,171) (203,871) (812,359) (604,162)
Pre-tax, pre-provision income (GAAP) 105,266 8,972 112,101 104,027 100,213 226,339 216,196
Less: non-operating noninterest income (1) (5,337) (15,895) -- -- -- (21,232) --
Add back: non-operating noninterest expenses (1) 29,404 135,210 15,673 19,645 25,334 180,287 121,050
Pre-tax, pre-provision income (Non-GAAP)(1) $ 129,333 $ 128,287 $ 127,774 $ 123,672 $ 125,547 $ 385,394 $ 337,246
(1) 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) Yields and rates calculated on a tax equivalent basis.
(4) Net revenue is comprised of net interest income and noninterest income.
(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)
2012 2011 Nine months ended
Third Quarter Second Quarter First
Quarter
Fourth Quarter Third Quarter September 30, 2012 September 30, 2011
Computation of Ending Tangible Common Equity:
Total stockholders' equity $ 4,915,421 $ 4,818,213 $ 4,875,446 $ 4,798,178 $ 4,000,675 $ 4,915,421 $ 4,000,675
Less: Goodwill and other intangibles (2,626,625) (2,631,605) (1,796,394) (1,803,240) (1,812,628) (2,626,625) (1,812,628)
Less: Preferred stockholders' equity (338,002) (338,002) (338,002) (338,002) -- (338,002) --
Tangible common equity $ 1,950,794 $ 1,848,606 $ 2,741,050 $ 2,656,936 $ 2,188,047 $ 1,950,794 $ 2,188,047
Computation of Average Tangible Equity:
Total stockholders' equity $ 4,872,605 $ 4,879,791 $ 4,850,276 $ 4,188,800 $ 4,027,572 $ 4,867,576 $ 3,552,559
Less: Goodwill and other intangibles (2,626,666) (2,206,682) (1,800,613) (1,809,690) (1,827,820) (2,212,836) (1,562,320)
Tangible equity $ 2,245,939 $ 2,673,109 $ 3,049,663 $ 2,379,110 $ 2,199,752 $ 2,654,740 $ 1,990,239
Computation of Average Tangible Common Equity:
Total stockholders' equity $ 4,872,605 $ 4,879,791 $ 4,850,276 $ 4,188,800 $ 4,027,572 $ 4,867,576 $ 3,552,559
Less: Goodwill and other intangibles (2,626,666) (2,206,682) (1,800,613) (1,809,690) (1,827,820) (2,212,836) (1,562,320)
Less: Preferred stockholders' equity (338,002) (338,002) (338,002) (66,226) -- (338,002) --
Tangible common equity $ 1,907,937 $ 2,335,107 $ 2,711,661 $ 2,312,884 $ 2,199,752 $ 2,316,738 $ 1,990,239
Computation of Texas Ratio:
Nonperforming Assets $ 152,049 $ 139,704 $ 140,463 $ 94,280 $ 91,278 $ 152,049 $ 91,278
Loans 90 days past due still accruing(1) 145,323 125,668 116,810 143,237 143,270 145,323 143,270
Sum of nonperforming assets and loans 90 days past due still accruing $ 297,372 $ 265,372 $ 257,273 $ 237,517 $ 234,548 $ 297,372 $ 234,548
Tangible common equity $ 1,950,794 $ 1,848,606 $ 2,741,050 $ 2,656,936 $ 2,188,047 $ 1,950,794 $ 2,188,047
Allowance for loan loss 149,933 138,516 126,746 120,100 112,749 149,933 112,749
Sum of tangible common equity and allowance for loan loss $ 2,100,727 $ 1,987,122 $ 2,867,796 $ 2,777,036 $ 2,300,796 $ 2,100,727 $ 2,300,796
Sum of nonperforming assets and acquired loans 90 days past due still accruing/Sum of tangible common equity and allowance for loan loss 14.16% 13.35% 8.97% 8.55% 10.19% 14.16% 10.19%
Computation of Tier 1 Common Capital:
Tier 1 capital $ 2,225,121 $ 2,128,702 $ 3,009,727 $ 2,962,031 $ 2,151,953 $ 2,225,121 $ 2,151,953
Less: Qualifying restricted core capital elements (111,820) (111,630) (111,453) (111,284) (111,112) (111,820) (111,112)
Less: Perpetual non-cumulative preferred stock (338,002) (338,002) (338,002) (338,002) -- (338,002) --
Tier 1 common capital (Non-GAAP) $ 1,775,299 $ 1,679,070 $ 2,560,272 $ 2,512,745 $ 2,040,841 $ 1,775,299 $ 2,040,841
(1) 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.
CONTACT: Investors: Ram Shankar Senior Vice President, Investor Relations (716) 270-8623 ram.shankar@fnfg.com News Media: David Lanzillo Senior Vice President, Corporate Communications (716) 819-5780 david.lanzillo@fnfg.comSource:First Niagara Financial Group, Inc.