Close

First Niagara Reports First Quarter 2015 Results

April 24, 2015 7:03 AM EDT

First Quarter 2015 Highlights:

  • First quarter operating earnings of $0.15 per diluted share, excluding restructuring charges
    • GAAP earnings of $0.12 per diluted share
  • Operating revenues of $345 million were consistent with prior quarter and year-ago quarter
    • Net interest margin declined 4 basis point QOQ reflecting low interest rate environment
  • Average loans up 4% annualized QOQ
    • Average commercial business and real estate loans increased 5% QOQ
    • Average consumer loan growth increased 2% QOQ driven by Indirect Auto and Home Equity balances
  • Average consumer checking balances increased 11% annualized QOQ and 5% YOY
    • Transactional deposits averaged 38% of deposits, up from 36% a year-ago
    • Apple Pay and Deposit Online Account Opening (OAO) capabilities launched in the first quarter
  • Strong credit quality maintained
    • NCOs averaged 0.31% of originated loans, 13 basis points lower QOQ
  • The GAAP tax rate increased to 28% in the first quarter of 2015, from low levels in 2014

BUFFALO, N.Y., April 24, 2015 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (Nasdaq: FNFG) today reported GAAP net income available to common shareholders of $43.8 million, or $0.12 per diluted share for the first quarter of 2015, compared to $52.7 million, or $0.15 per diluted share, for the quarter ended March 31, 2014. Excluding certain non-operating restructuring items incurred during the first quarter of 2015, operating net income available to common shareholders was $54.7 million, or $0.15 per diluted share, compared to $61.0 million, or $0.17 per diluted share in the year-ago quarter.

"Our first-quarter results demonstrate our strong core business fundamentals and the progress we are making to provide a faster, easier, simpler and more secure banking experience for our customers, which will drive increased value for our shareholders," said Gary M. Crosby, President and Chief Executive Officer. "We recently launched our new Online Deposit Account Opening solution which enables our customers to choose the products they want and open their accounts using their mobile, tablet or desktop devices. Early customer experience shows account opening rates that are two times greater than our previous experience."

"Compared to the prior quarter, total operating expenses declined 2% reflecting strong expense management more than offsetting seasonal pressures from certain expense items such as payroll taxes," said Gregory W. Norwood, Chief Financial Officer. "Salaries and benefits expenses also decreased 5% from the year-ago quarter driven primarily by the previously disclosed Organization Simplification initiative. Average consumer checking deposit balances increased 11% annualized sequentially driven both by balance growth and new customer acquisition."

First Quarter Results Summary

In the first quarter of 2015, First Niagara reported GAAP net income available to common shareholders of $43.8 million, or $0.12 per diluted share, which included $11 million in after-tax restructuring expenses, or $0.03 per diluted share, incurred primarily in connection with previously announced branch consolidations and the Organizational Simplification initiative completed in the first quarter. Excluding non-operating items as detailed in the accompanying table, first quarter 2015 operating net income available to common shareholders was $54.7 million, or $0.15 per diluted share, compared to $0.15 per diluted share in the fourth quarter of 2014.

Compared to the prior quarter, average loans increased 4% annualized. Average commercial business and real estate loans increased 5% annualized over the prior quarter, driven by increases in commercial real estate volumes. Average consumer loans increased 2% annualized driven by increases in indirect auto and home equity balances. Average consumer interest-bearing and noninterest-bearing checking account balances increased 11% annualized to $5.2 billion, driven by higher balances held by customers as well as strong customer response to the Company's Simple Checking product launched in August 2014. Average transactional deposit balances, which include interest-bearing and noninterest-bearing checking accounts currently represent 38% of the company's deposit balances, up from 36% a year ago.

Operating revenues were flat to the prior quarter, reflecting two less days in the first quarter and offset by the historic tax credit amortization which reduced noninterest income in the prior quarter. Net interest income decreased 3% in the first quarter compared to the prior quarter primarily driven by fewer days in the quarter, lower commercial real estate prepayment fees as well as continued impact of reinvestments and re-pricing of assets in the current low interest rate environment. Net interest margin was 3.07%, down 4 basis points from the prior quarter, in-line with the company's expectations. Noninterest income increased 7% from the prior quarter which included $11 million in historic tax credit (HTC) amortization. Excluding HTC amortization, noninterest income declined $6 million sequentially, reflecting moderation in capital markets income from record levels in the fourth quarter as well as normal seasonal declines in deposit service charges and merchant and card fees. In the first quarter, non-GAAP operating expenses were $244 million and declined $5 million from the prior quarter where strong expense management offset normal seasonal increases typical in the first quarter.

The provision for loan losses on originated loans totaled $11 million in the first quarter of 2015, compared to $31 million in the prior quarter. Net charge-offs equaled 0.31% of average originated loans, a decrease of 13 basis points from 0.44% in the fourth quarter. At March 31, 2015, originated criticized loans decreased 5% from the prior quarter. Nonperforming originated loans were $198 million, or 1.01% of originated loans, compared to 0.90% at the end of the prior quarter.

Operating Results (Non-GAAP) Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014
Net interest income  $ 262.9  $ 269.8  $ 273.3  $ 271.8  $ 270.7
Provision for credit losses  12.8  35.7  16.7  19.8  23.7
Noninterest income  82.2  77.2  75.4  80.9  76.7
Noninterest expense  243.5  248.2  249.5  244.1  238.4
Operating net income  62.2  60.7  74.0  75.9  68.6
Preferred stock dividend  7.5  7.5  7.5  7.5  7.5
Operating net income available to common  $ 54.7  $ 53.2  $ 66.5  $ 68.3  $ 61.0
Weighted average diluted shares outstanding  352.6  352.2  351.9  351.5  351.4
Operating earnings per diluted share  $ 0.15  $ 0.15  $ 0.19  $ 0.19  $ 0.17
           
Reported Results (GAAP) Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014
Operating net income before non-op. items  $ 62.2  $ 60.7  $ 74.0  $ 75.9  $ 68.6
Non-operating items (a)  10.9  (8.4)  994.1  --   8.4
Net Income / (loss)  51.4  69.1  (920.0)  75.9  60.2
Preferred stock dividend  7.5  7.5  7.5  7.5  7.5
Net income / (loss) available to common  $ 43.8  $ 61.5  $ (927.6)  $ 68.3  $ 52.7
Weighted average diluted shares outstanding  352.6  352.2  350.4  351.5  351.4
Earnings per diluted share  $ 0.12  $ 0.17  $ (2.65)  $ 0.19  $ 0.15
           
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.
Q1 2014: Restructuring charges primarily related to severance expense and branch realignment, net of taxes.

Loans

Average total loans increased 4% annualized from the prior quarter, driven by increases in the company's commercial real estate, indirect auto and home equity portfolios.

Average commercial loans, which include commercial business (C&I) and commercial real estate (CRE) loans, increased to $14.1 billion, or a 5% annualized increase from the prior quarter, driven by growth in commercial real estate volumes primarily in the Eastern Pennsylvania and New England markets. Average CRE loans increased 9% annualized to $8.3 billion. C&I loans averaged $5.8 billion and were relatively flat compared to the prior quarter given the company's focus on relationship pricing and prudent underwriting in the current competitive environment, and to a lesser extent principal pay-downs.

Average indirect auto loan balances increased 11% annualized or by $55 million to $2.2 billion as new originations were partially offset by increasing pay-downs. Indirect auto originations during the quarter moderated to $235 million driven by cold weather conditions which impacted car sales as well as the company's decision to be more selective on pricing. New originations in the first quarter yielded 3.25%, net of dealer reserve, an increase of 16 basis points compared to the prior quarter originations at a weighted average FICO score of 755. Average residential real estate loans decreased $26 million, or 3% annualized driven by increased prepayment of adjustable rate mortgages and the company's limited appetite for longer-duration mortgage assets. Home equity balances increased for the eighth consecutive quarter to $2.9 billion, or 4% annualized from the prior quarter reflecting higher customer draws and the benefits of promotional and cross-sell campaigns.

Deposits

Average consumer deposit balances increased 5% annualized from the prior quarter driven by higher customer balances, new account acquisitions and successful money market deposit promotional campaigns. This increase was offset by seasonal declines in business deposits as well as lower municipal and brokered time deposits.

Average consumer interest-bearing and noninterest-bearing checking account balances increased 11% annualized to $5.2 billion, driven by higher balances held by customers as well as strong customer response to the company's Simple Checking product launched in August 2014. A 21% annualized increase in average consumer noninterest-bearing checking deposit balances was more than offset by seasonal declines in business noninterest-bearing checking account balances, driving a 4% decrease in overall noninterest-bearing checking account balances. Total interest-bearing checking balances averaged $5.0 billion, a 4% annualized decrease from the prior quarter as an 8% increase in consumer interest-bearing checking balances was more than offset by decreases in municipal interest-bearing checking deposits.

Average transactional deposit balances, which include interest-bearing and noninterest-bearing checking accounts, decreased an annualized 4% over the prior quarter and currently represent 38% of the company's deposit balances, up from 36% a year ago.

Money market deposit balances increased 4% annualized reflecting promotional marketing campaigns. Time deposits declined 12% annualized to $3.8 billion driven primarily by a $98 million decrease in brokered deposits.

The average cost of interest-bearing deposits increased 3 basis points to 0.28% from the prior quarter, reflecting the impact of promotional deposit campaigns to gather money market deposit balances as well as purchase accounting mark-to-market adjustments on maturing acquired certificate of deposits.

Net Interest Income

First quarter 2015 GAAP net interest income decreased $7 million or 3% from the prior quarter to $263 million. Approximately half of the sequential decline in net interest income was driven by two less days in the first quarter. The remainder of the decrease was driven by lower commercial real estate prepayment fees, deposit promotional pricing campaigns as well as the continued impact of reinvestments and re-pricing of assets in the current low interest rate environment. Average earning assets increased 4% annualized from the prior quarter, driven by growth in both loans and securities.

Net interest margin declined 4 basis points from the prior quarter to 3.07%, reflecting continued compression of earning asset yields in the current low interest rate environment, expiration of certain favorable purchase accounting marks on acquired certificate of deposits, as well as impact of deposit pricing promotional campaigns.

Credit Quality

At March 31, 2015, the allowance for loan losses was $231 million, compared to $234 million at December 31, 2014. Nonperforming assets were $247 million and comprised 0.63% of total assets, compared to $224 million or 0.58% of total assets at December 31, 2014. Total criticized loans decreased 4% from the prior quarter.

Information for both the originated and acquired portfolios follows.

     
  Q1 2015 Q4 2014
$ in millions Originated Acquired Total Originated Acquired Total
Provision for loan losses*  $ 11.1  $ 3.0  $ 14.2  $ 31.0  $ 3.2  $ 34.2
Net charge-offs  15.0  2.3  17.3  21.0  1.7  22.7
NCOs/ Avg Loans  0.31%  0.25%  0.30%  0.44%  0.17%  0.40%
Total loans**  $ 19,529  $ 3,590  $ 23,118  $ 19,295  $ 3,742  $ 23,037
             
(*) Excludes provision for unfunded commitments of $(1.4) million and $1.5 million in 1Q15 and 4Q14, respectively
(**) Acquired loans before associated credit discount; see accompanying tables for further information

Originated loans

The provision for loan losses on originated loans totaled $11 million and decreased from $31 million in the fourth quarter of 2014 which included an $10 million provision toward one Western Pennsylvania credit serving the energy sector, a $5 million provision towards an unrelated commercial credit that the company exited in March 2015, and a $5 million provision to cover exposure to other borrowers servicing the energy sector following the recent fall in oil and gas prices.

Net charge-offs in the first quarter equaled $15 million or 31 basis points of average originated loans, compared to $21 million or 44 basis points in the prior quarter.

At March 31, 2015, nonperforming originated loans comprised 1.01% of originated loans, compared to 0.90% at December 31, 2014. This increase was driven by the addition of a few large and discrete commercial credits to nonperforming status and lower resolutions. The loss content related to the increased nonperforming loans is expected to be low because they are well-secured.

At March 31, 2015, the allowance for loan losses on originated loans totaled $224 million or 1.15% of such loans, compared to $228 million or 1.18% of such loans at December 31, 2014. This decline is primarily related to the first quarter charge-off of the commercial credit that the company exited in March but recorded the provision expense in the fourth quarter of 2014.

Acquired loans

The provision for losses on acquired loans totaled $3 million, relatively unchanged from the prior quarter. Net charge-offs on the acquired portfolio totaled $2 million during the quarter, also consistent with the prior period. At March 31, 2015, the allowance for loan losses on acquired loans totaled $7 million, compared to $6 million at December 31, 2014. Acquired nonperforming loans totaled $30 million, unchanged from the prior quarter. At March 31, 2015, remaining credit marks available to absorb losses on a pool-by-pool basis totaled $92 million.

Noninterest Income

First quarter 2015 noninterest income of $82 million increased 7% or $5 million compared to the prior quarter which included $11 million in historic tax credit amortization (HTC). Excluding the impact of HTC amortization in the fourth quarter, noninterest income decreased $6 million or 7% from the prior quarter driven by seasonally lower deposit service charges and merchant and card fees as well as moderation in capital markets revenues from record levels in the fourth quarter.

Capital markets income decreased $4 million sequentially reflecting lower derivative sales and volumes from exceptionally strong and record fourth quarter levels. Deposit service charges decreased $2 million or 10% from the prior quarter driven by seasonal patterns and lower NSF incident rates. Merchant and card fees declined 9% to $12 million reflecting normal seasonality and to a lesser extent severe winter weather.

Insurance commissions increased $1 million or 6% from the prior quarter, primarily driven by typical first quarter strength in renewal activity that was consistent with the prior year. Mortgage banking revenues increased modestly from the prior quarter driven by higher locked volumes and gain-on-sale margin. Wealth management services income increased 2% from the prior quarter to $15 million driven by stronger variable rate annuity and mutual fund sales.

Noninterest Expense

Excluding non-operating items in both quarters, expenses totaled $244 million in the first quarter of 2015, or $5 million lower than the fourth quarter of 2014. Reported first quarter expenses of $261 million included pre-tax restructuring charges of $18 million primarily related to severance and other expenses from previously announced branch consolidations and the Organizational Simplification initiative. Fourth quarter 2014 expenses totaled $234 million and included a benefit of $23 million related to reversal of reserves recognized to address a previously disclosed process issue related to certain customer deposit accounts as well as $9 million in restructuring charges.

Salaries and benefits expenses increased $1 million compared to the prior quarter as $4 million in lower salaries from lower headcount were offset by typical resetting of payroll taxes and other seasonal benefits expenses. On a year-over-year basis, salaries and benefits expenses decreased 5% driven by a 7% decline in headcount. Occupancy and equipment expense decreased $1 million due primarily to branch consolidations. Marketing and advertising expenses moderated $2 million from elevated fourth quarter levels. Professional services fees decreased $4 million from elevated professional fees incurred for other corporate activities in the fourth quarter of 2014.

In the first quarter of 2015, the operating efficiency ratio was 70.5%, compared to 71.5% in the prior quarter.

Effective Tax Rate

The effective tax rate, on a GAAP basis, was 28% in the first quarter, compared to 10% in the prior quarter, primarily reflecting the expiration of previously disclosed tax strategies.

Capital

At March 31, 2015, all regulatory capital ratios and amounts were calculated under the Basel III standardized transitional approach. The company's estimated consolidated Total Risk Based capital and Common Equity Tier 1 capital ratios were 12.0% and 8.5% respectively. At December 31, 2014, the comparable Total Risk Based and Tier 1 Common Equity ratios were 11.8% and 8.2%, 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 390 branches, $39 billion in assets, $28 billion in deposits, and approximately 5,300 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, April 24, 2015 to discuss the company's financial results. Those wishing to participate in the call may dial toll-free 1-888-456-0351 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 June 1, 2015 by dialing 1-800-937-2124, passcode: 42415.

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) execution risk associated with the announced investment plan; (7) regulatory approval to continue payment of common and preferred dividends.

             
First Niagara Financial Group, Inc.            
Income Statement Highlights - Reported Basis            
(in thousands, except per share amounts)            
             
  2015 2014 2013
   First   Fourth   Third   Second   First   Fourth 
   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter 
Interest income:            
Loans and leases  $ 210,371  $ 214,609  $ 212,452  $ 210,218  $ 209,644  $ 213,778
Investment securities and other   86,280  86,919  91,668  91,566  90,421  96,020
Total interest income   296,651  301,528  304,120  301,784  300,065  309,798
             
Interest expense:            
Deposits   15,344  14,295  13,590  13,183  12,236  12,941
Borrowings   18,363  17,450  17,251  16,789  17,082  16,579
Total interest expense   33,707  31,745  30,841  29,972  29,318  29,520
             
Net interest income  262,944  269,783  273,279  271,812  270,747  280,278
Provision for credit losses  12,765  35,706  16,700  19,800  23,700  32,000
Net interest income after provision  250,179  234,077  256,579  252,012  247,047  248,278
             
Noninterest income:            
Deposit service charges  20,389  22,611  20,373  23,733  23,356  25,726
Insurance commissions  15,714  14,764  18,352  17,343  15,691  15,431
Merchant and card fees  11,907  13,043  12,991  12,834  11,504  12,567
Wealth management services  14,650  14,404  15,367  15,949  15,587  15,441
Mortgage banking  4,887  4,600  4,358  5,241  3,396  2,754
Capital markets income  4,152  8,312  3,509  2,917  3,623  6,310
Lending and leasing   4,353  4,567  3,914  4,680  4,732  4,140
Bank owned life insurance   3,592  3,187  3,080  3,145  5,405  6,027
Other income  2,600  (8,311)  (6,552)  (4,985)  (6,570)  916
Total noninterest income  82,244  77,177  75,392  80,857  76,724  89,312
             
Noninterest expense:            
Salaries and employee benefits  111,973  110,985  116,245  117,728  117,940  113,754
Occupancy and equipment  27,332  28,379  27,450  28,553  27,876  27,420
Technology and communications  35,061  33,940  31,465  31,140  30,345  29,483
Marketing and advertising  9,863  11,584  7,746  8,439  7,364  4,879
Professional services  13,070  16,644  13,988  13,029  11,923  9,314
Amortization of intangibles  6,205  6,432  6,521  6,790  7,509  7,562
Federal deposit insurance premiums  11,158  11,911  9,579  9,756  8,855  7,431
Restructuring charges  17,517  9,066  2,364  --   10,356  -- 
Goodwill impairment  --   --   1,100,000  --   --   -- 
Deposit account remediation  --   (23,000)  45,000  --   --   -- 
Other expense  28,859  28,371  36,467  28,680  26,568  27,305
Total noninterest expense  261,038  234,312  1,396,825  244,115  248,736  227,148
             
Income (loss) before income tax  71,385  76,942  (1,064,854)   88,754  75,035  110,442
Income tax expense (benefit)  20,000  7,875  (144,808)   12,879  14,825  32,752
Net income (loss)  51,385  69,067  (920,046)   75,875  60,210  77,690
Preferred stock dividend  7,547  7,547  7,547  7,547  7,547   7,547 
Net income (loss) available to common stockholders  $ 43,838  $ 61,520  $ (927,593)   $ 68,328  $ 52,663  $ 70,143
             
Financial Ratios:            
Earnings (loss) per basic share  $ 0.12  $ 0.17  $ (2.65)   $ 0.19  $ 0.15  $ 0.20
Earnings (loss) per diluted share  $ 0.12  $ 0.17  $ (2.65)   $ 0.19 $ 0.15 $ 0.20
Weighted average shares outstanding - basic(1)  350,741  350,444  350,381  350,229  349,906  349,718
Weighted average shares outstanding - diluted(1)  352,621  352,152  350,381  351,541  351,408  350,699
Net revenue(2)  $ 345,188  $ 346,960  $ 348,671  $ 352,669  $ 347,471  $ 369,590
Noninterest income as a percentage of net revenue(2) 23.83% 22.24% 21.62% 22.93% 22.08% 24.17%
Pre-tax, pre-provision income (loss)(3)  $ 84,150  $ 112,648  $ (1,048,154)  $ 108,554  $ 98,735  $ 142,442
Pre-tax, pre-provision income per diluted share(3)  $ 0.24  $ 0.32  $ (2.99)   $ 0.31  $ 0.28  $ 0.41
Pre-tax, pre-provision return on average assets(3) 0.88%  1.17 %  (10.8)% 1.14% 1.06% 1.51%
Net interest margin(4) 3.07% 3.11% 3.21% 3.26% 3.33% 3.41%
Interest yield on average loans(4) 3.75% 3.78% 3.80% 3.89% 3.98% 4.04%
Rate paid on interest-bearing liabilities 0.48% 0.45% 0.44% 0.44% 0.44% 0.43%
Efficiency ratio 75.6% 67.5% 400.6% 69.2% 71.6% 61.5%
Expenses as a percentage of average loans and deposits 2.05% 1.85% 11.19% 1.97% 2.06% 1.89%
Effective tax rate (benefit) 28.0%  10.2 %  (13.6)% 14.5% 19.8% 29.7%
Return on average assets(5)  0.54 %  0.72 %  (9.46)%  0.80 % 0.65% 0.82%
Return on average equity(5)  5.05 %  6.62 %  (71.57)%  6.01 % 4.85% 6.18%
Return on average tangible equity(3)(5)  7.68 %  10.07 %  (141.16)%  12.01 % 9.79% 12.64%
Return on average common equity  4.69 %  6.42 %  (77.27)%  5.80 % 4.55% 5.99%
Return on average tangible common equity(3)  7.48 %  10.24 %  (163.71)%  12.48 % 9.90% 13.25%
             
(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 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 2013
  March 31,  December 31,  September 30, June 30, March 31, December 31, 
Cash and cash equivalents  $ 387,676  $ 420,033  $ 451,313  $ 557,423  $ 503,070  $ 462,927
Investment securities:            
Available for sale  5,911,419  5,915,338  6,198,140  6,683,914  7,060,237  7,423,162
Held to maturity  6,214,561  5,941,621  5,351,977  4,834,279  4,467,213  4,042,481
FHLB and FRB common stock  375,090  411,857  389,870  434,322  437,550  469,217
Total investment securities  12,501,070  12,268,816  11,939,987  11,952,515  11,965,000  11,934,860
Loans held for sale  48,755  39,825  31,245  45,446  34,465  50,137
Loans and leases:             
Commercial:            
Real estate  8,287,108  8,204,027  8,013,622  7,940,977  7,867,724  7,777,903
Business  5,790,980  5,775,413  5,836,235  5,741,684  5,470,177  5,290,392
Total commercial loans  14,078,088  13,979,440  13,849,857  13,682,661  13,337,901  13,068,295
Consumer:            
Residential real estate  3,330,216  3,353,081  3,360,805  3,358,347  3,389,071  3,447,997
Home equity  2,943,844  2,936,123  2,886,655  2,835,421  2,767,024  2,752,229
Indirect auto  2,200,913  2,166,320  2,073,843  1,871,688  1,655,489  1,543,983
Credit cards  301,228  324,113  312,549  311,640  305,663  325,140
Other consumer  263,985  278,305  286,140  286,062  295,692  302,009
Total consumer loans  9,040,186  9,057,942  8,919,992  8,663,158  8,412,939  8,371,358
Total loans and leases  23,118,274  23,037,382  22,769,849  22,345,819  21,750,840  21,439,653
Allowance for loan losses  231,138  234,251  222,753  219,426  213,937  209,274
Loans and leases, net  22,887,136  22,803,131  22,547,096  22,126,393  21,536,903  21,230,379
Bank owned life insurance  428,454  426,192  423,376  420,230  417,031  415,205
Goodwill and other intangibles  1,410,800  1,417,005  1,423,437  2,528,481  2,535,271  2,542,783
Other assets  1,243,588  1,176,036  1,155,588  997,120  999,469  992,071
Total assets  $ 38,907,479  $ 38,551,038  $ 37,972,042  $ 38,627,608  $ 37,991,209  $ 37,628,362
             
Deposits:            
Savings accounts  $ 3,488,441  $ 3,451,616  $ 3,458,661  $ 3,626,750  $ 3,664,765  $ 3,666,759
Interest-bearing checking  5,158,264  5,084,456  5,055,458  4,743,684  4,929,302  4,743,829
Money market deposits  10,368,358  9,962,220  9,894,346  9,834,344  10,106,569  9,739,539
Noninterest-bearing deposits  5,500,484  5,407,382  5,308,736  5,284,037  5,101,681  4,865,873
Certificates of deposit  3,734,226  3,875,563  3,952,879  3,955,754  3,795,438  3,649,257
Total deposits  28,249,773  27,781,237  27,670,080  27,444,569  27,597,755  26,665,257
             
Short-term borrowings  4,739,264  5,471,974  4,928,762  4,890,343  4,137,496  4,822,222
Long-term borrowings  1,233,550  733,620  733,684  733,337  733,384  733,883
Other liabilities  559,646  471,449  543,813  477,685  495,589  413,647
Total liabilities  34,782,233  34,458,280  33,876,339  33,545,934  32,964,224  32,635,009
Preferred stockholders' equity  338,002  338,002  338,002  338,002  338,002  338,002
Common stockholders' equity  3,787,244  3,754,756  3,757,701  4,743,672  4,688,983  4,655,351
Total stockholders' equity  4,125,246  4,092,758  4,095,703  5,081,674  5,026,985  4,993,353
Total liabilities and stockholders' equity  $ 38,907,479  $ 38,551,038  $ 37,972,042  $ 38,627,608  $ 37,991,209  $ 37,628,362
             
Selected balance sheet information:            
Total interest-earning assets(1)  $ 35,594,208  $ 35,310,447  $ 34,720,650  $ 34,305,451  $ 33,684,828  $ 33,396,058
Total interest-bearing liabilities  28,722,103  28,579,449  28,023,790  27,784,211  27,366,955  27,355,489
Net interest-earning assets  $ 6,872,105  $ 6,730,998  $ 6,696,860  $ 6,521,240  $ 6,317,873  $ 6,040,569
             
Tangible common equity(1)(2)  $ 2,376,444  $ 2,337,751  $ 2,334,263  $ 2,215,191  $ 2,153,712  $ 2,112,568
Unrealized gain on available for sale securities, net of tax(3)  68,194  52,244  55,052  86,244  72,579  63,930
             
Total core deposits  $ 24,515,547  $ 23,905,674  $ 23,717,201  $ 23,488,815  $ 23,802,317  $ 23,016,000
             
Originated loans(4)  $ 19,528,609  $ 19,295,553  $ 18,841,896  $ 18,196,302  $ 17,388,542  $ 16,922,161
Acquired loans(5)  3,681,354  3,834,931  4,028,091  4,254,750  4,475,593  4,642,775
Credit related discount on acquired loans(6)  (91,689)  (93,102)  (100,138)  (105,233)  (113,295)  (125,283)
Total Loans  $ 23,118,274  $ 23,037,382  $ 22,769,849  $ 22,345,819  $ 21,750,840  $ 21,439,653
             
(1) Includes interest bearing cash and cash equivalents, investment securities at amortized cost, loans held for sale, and total loans and leases.
(2) The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail.
(3) Excludes unamortized unrealized gains recorded in accumulated other comprehensive income related to available for sale securities transferred to held to maturity.
(4) Originated loans represent total loans excluding acquired loans.
(5) 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
  March 31, 2015 December 31, 2014 March 31, 2014
   Average  Interest(1)  Yields   Average  Interest(1)  Yields   Average  Interest(1)  Yields 
   Balances   and  Balances   and  Balances   and
      Rates(1)     Rates(1)     Rates(1)
Interest-earning assets:                  
Loans and leases(2)                  
Commercial:                  
Real estate  $ 8,263  $ 74 3.60%  $ 8,087  $ 76 3.68%  $ 7,801  $ 76 3.89%
Business  5,797  50  3.43   5,791  51  3.43   5,413  48  3.56 
Total commercial loans  14,060  124  3.53   13,878  127  3.58   13,214  124  3.76 
Consumer:                  
Residential real estate  3,338  32  3.78   3,364  32  3.79   3,416  33  3.88 
Home equity  2,939  28  3.91   2,912  29  3.94   2,756  28  4.12 
Indirect auto  2,187  15  2.79   2,132  15  2.82   1,613  12  2.93 
Credit cards  311  9  11.74   314  9  11.47   314  9  11.64 
Other consumer  275  6  8.49   283  6  8.47   300  6  8.64 
Total consumer loans  9,050  90  4.02   9,005  91  4.01   8,399  88  4.26 
Total loans and leases  23,110  214  3.75   22,883  218  3.78   21,613  212  3.98 
Residential MBS  7,180  45  2.49   6,892  43  2.51   5,689  39  2.75 
Commercial MBS  1,404  11  3.26   1,512  13  3.37   1,697  14  3.28 
Other investment securities (3)  3,554  31  3.52   3,585  32  3.59   4,388  39  3.55 
Total securities, at amortized cost  12,138  87  2.88   11,989  88  2.94   11,774  92  3.12 
Money market and other investments  158  --   1.01   161  --   1.21   125  1  1.64 
Total interest-earning assets  35,406  $ 302 3.45%  35,033  $ 307 3.47%  33,512  $ 305 3.69%
Goodwill and other intangibles  1,414      1,420      2,539    
Other noninterest-earning assets  1,887      1,865      1,697    
                   
Total assets  $ 38,707      $ 38,318      $ 37,748    
                   
Interest-bearing liabilities:                   
Deposits                  
Savings accounts  $ 3,432  $ --  0.08%  $ 3,447  $ 1 0.09%  $ 3,631  $ 1 0.08%
Interest-bearing checking  5,001  --   0.03   5,049  --   0.03   4,735  --   0.03 
Money market deposits   10,132  7  0.26   10,037  6  0.24   9,887  5  0.20 
Certificates of deposit   3,778  8  0.84   3,888  7  0.72   3,647  6  0.70 
Total interest bearing deposits  22,343  15 0.28%  22,421  14 0.25%  21,900  12 0.23%
Borrowings                  
Short-term borrowings  5,125  6 0.46%  4,917  5 0.43%  4,642  5 0.44%
Long-term borrowings  1,027  13  4.98   734  12  6.56   734  12  6.69 
Total borrowings   6,152  19  1.21   5,651  17  1.23   5,376  17  1.29 
Total interest-bearing liabilities   28,495  $ 34 0.48%  28,072  $ 31 0.45%  27,276  $ 29 0.44%
Noninterest-bearing deposits   5,430      5,485      4,864    
Other noninterest-bearing liabilities   654      620      574    
Total liabilities   34,579      34,177      32,714    
Total stockholders' equity  4,128      4,141      5,034    
Total liabilities and stockholders' equity  $ 38,707      $ 38,318      $ 37,748    
                   
Net interest income (FTE)    $ 268      $ 275      $ 275  
Taxable Equivalent Adjustment(1)    5      5      4  
                   
Total core deposits   $ 23,995  $ 7 0.13%  $ 24,018  $ 7 0.12%  $ 23,117  $ 6 0.10%
Total transactional deposits   10,431  --  0.01%  10,534  --  0.02%  9,599  --  0.02%
Total deposits   27,773  15 0.22%  27,906  14 0.20%  26,764  12 0.19%
                   
Tax equivalent net interest rate spread     2.97%     3.02%     3.25%
Tax equivalent net interest rate margin(4)     3.07%     3.11%     3.33%
                   
(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.
(4) Includes certain adjustments for the following periods which impacted our tax equivalent net interest margin as follows:
                   
         Three months ended       
         December 31, 2014       
Tax equivalent net interest rate margin as reported (GAAP)       3.11%      
CLO payoff discount recognition       -0.01%      
CMBS prepayment normalization       -0.01%      
CMO amortization and retroactive adjustment       0.01%      
CRE prepayment penalties       -0.01%      
Tax equivalent net interest rate margin normalized (non-GAAP)       3.09%      
             
             
First Niagara Financial Group, Inc.            
Allowance for Loans and Lease Losses & Asset Quality            
(in thousands)            
  2015 2014 2013
   First   Fourth   Third   Second   First   Fourth 
   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter 
Beginning balance  $ 234,251  $ 222,753  $ 219,426  $ 213,937  $ 209,274  $ 197,953
Net loan (charge-offs) recoveries:            
Commercial real estate  $ (5,825)  $ (2,008)  $ (2,259)  $ (4,885)  $ 905  $ (5,764)
Commercial business  (4,178)  (12,650)  (3,148)  (1,795)  (9,138)  (6,382)
Residential real estate  (266)  (476)  (102)  (352)  (174)  (168)
Home equity  (1,526)  (1,406)  (1,131)  (1,294)  (3,045)  (1,528)
Indirect auto  (1,226)  (2,241)  (1,621)  (1,455)  (2,086)  (1,215)
Credit cards  (2,450)  (2,464)  (2,726)  (2,930)  (3,044)  (3,082)
Other consumer  (1,807)  (1,457)  (1,986)  (1,200)  (2,055)  (2,140)
Total net loan charge-offs  $ (17,278)  $ (22,702)  $ (12,973)  $ (13,911)  $ (18,637)  $ (20,279)
Provision for loan losses  14,165  34,200  16,300  19,400  23,300  31,600
Ending balance  $ 231,138  $ 234,251  $ 222,753  $ 219,426  $ 213,937  $ 209,274
             
Supplemental information            
Allowance to loans 1.00% 1.02% 0.98%  0.98%  0.98%  0.98%
Allowance for originated loans to originated loans(1) 1.15% 1.18% 1.16%  1.19%  1.21%  1.21%
             
Net charge-offs (recoveries) to average loans (annualized)            
Commercial real estate  0.29%  0.10% 0.11%  0.25%  (0.05)%  0.30%
Commercial business  0.29%  0.87% 0.22%  0.13%  0.68%  0.49%
Total commercial loans  0.28%  0.42% 0.16%  0.20%  0.25%  0.38%
Residential real estate  0.03%  0.06% 0.01%  0.04%  0.02%  0.02%
Home equity  0.21%  0.19% 0.16%  0.18%  0.44%  0.22%
Indirect auto  0.22%  0.42% 0.33%  0.33%  0.52%  0.33%
Credit cards  3.16%  3.13% 3.49%  3.80%  3.88%  3.93%
Other consumer  2.63%  2.06% 2.77%  1.65%  2.74%  2.79%
Total consumer loans  0.33%  0.36% 0.35%  0.34%  0.50%  0.40%
Total loans  0.30%  0.40% 0.23%  0.25%  0.34%  0.38%
             
Net charge-offs (recoveries) of originated loans to average originated loans (annualized)(1)            
Commercial real estate  0.24%  0.06% 0.13%  0.29%  (0.11)%  0.24%
Commercial business  0.31%  0.93% 0.24%  0.14%  0.73%  0.53%
Total commercial loans  0.27%  0.44% 0.18%  0.22%  0.26%  0.37%
Residential real estate  0.05%  0.09% 0.02%  0.07%  0.04%  0.04%
Home equity  0.16%  0.15% 0.17%  0.16%  0.21%  0.29%
Indirect auto  0.22%  0.42% 0.33%  0.33%  0.52%  0.33%
Credit cards  3.16%  3.13% 3.49%  3.80%  3.88%  3.93%
Other consumer  2.63%  2.06% 2.77%  1.65%  2.74%  2.80%
Total consumer loans  0.38%  0.44% 0.45%  0.45%  0.57%  0.56%
Total loans  0.31%  0.44% 0.27%  0.30%  0.36%  0.43%
             
Nonperforming loans:            
Originated(1):            
Commercial real estate  $ 65,655  $ 53,164  $ 57,340  $ 55,945  $ 41,296  $ 53,395
Commercial business  54,506  45,201  36,939  32,861  35,335  42,013
Residential real estate  32,791  33,652  36,113  33,870  32,736  31,478
Home equity  26,163  23,749  23,392  19,429  19,516  18,426
Indirect auto  13,399  12,616  11,890  9,821  7,943  6,274
Other consumer  5,065  5,140  5,134  5,037  5,216  5,838
Total originated nonperforming loans  197,579  173,522  170,808  156,963  142,042  157,424
Total acquired nonperforming loans(2)  30,236  30,223  28,611  32,488  30,617  30,088
Total nonperforming loans  227,815  203,745  199,419  189,451  172,659  187,512
Real estate owned  19,128  20,541  20,261  24,270  25,466  24,788
Total nonperforming assets(3)  $ 246,943  $ 224,286  $ 219,680  $ 213,721  $ 198,125  $ 212,300
             
Accruing troubled debt restructurings (TDR)  $ 64,401  $ 67,102  $ 69,199  $ 80,214  $ 56,038  $ 52,263
Loans 90 days past due still accruing(4)  87,213  93,903  108,615  112,718  119,134  113,212
Total classified loans(5)  615,518  609,316  649,320  661,699  667,327  663,700
Total criticized loans(6)  $ 990,656  $ 1,041,050  $ 1,089,851  $ 1,072,133  $ 1,075,523  $ 985,019
             
Total nonperforming loans to loans 0.99% 0.88% 0.88%  0.85%  0.79%  0.87%
Total nonperforming originated loans to originated loans(1) 1.01% 0.90% 0.91%  0.86%  0.82%  0.93%
Total nonperforming assets to loans and real estate owned 1.07% 0.97% 0.96%  0.96%  0.91%  0.99%
Total nonperforming assets to assets 0.63% 0.58% 0.58%  0.55%  0.52%  0.56%
Allowance to nonperforming loans 101.5% 115.0% 111.7%  115.8%  123.9%  111.6%
             
Originated loans(1)  $ 19,528,609  $ 19,295,553  $ 18,841,896  $ 18,196,302  $ 17,388,542  $ 16,922,161
Acquired loans(7)  3,681,354  3,834,931  4,028,091  4,254,750  4,475,593  4,642,775
Credit related discount on acquired loans(8)  (91,689)   (93,102)   (100,138)   (105,233)   (113,295)   (125,283) 
Total Loans  $ 23,118,274  $ 23,037,382  $ 22,769,849  $ 22,345,819  $ 21,750,840  $ 21,439,653
             
(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 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) Carrying value of acquired loans plus the principal not expected to be collected.
(8) 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 2013
  March 31, December 31, September 30, June 30, March 31, December 31, 
First Niagara Financial Group, Inc. capital ratios(1)(2):            
Tier 1 risk based capital 10.02% 9.81% 9.82% 9.58% 9.62% 9.56%
Total risk based capital 11.95% 11.75% 11.75% 11.53% 11.60% 11.53%
Common equity tier 1 capital 8.48%  N/A   N/A   N/A   N/A   N/A 
Tier 1 common capital(3)  N/A  8.20% 8.19% 7.93% 7.93% 7.86%
Leverage 7.56% 7.50% 7.34% 7.34% 7.28% 7.26%
Equity to assets 10.60% 10.62% 10.79% 13.16% 13.23% 13.27%
Tangible common equity to tangible assets(3) 6.34% 6.30% 6.39% 6.14% 6.07% 6.02%
Total risk weighted assets  $ 28,153  $ 28,186  $ 27,729  $ 27,313  $ 26,638  $ 26,412
             
First Niagara Bank, N.A capital ratios(1)(2):            
Tier 1 risk based capital 10.65% 10.48% 10.41% 10.19% 10.23% 10.15%
Total risk based capital 11.53% 11.37% 11.27% 11.05% 11.08% 10.99%
Common equity tier 1 capital 10.65%  N/A   N/A   N/A   N/A   N/A 
Leverage 8.03% 8.01% 7.78% 7.80% 7.74% 7.70%
Total risk weighted assets  $ 28,068  $ 28,146  $ 27,686  $ 27,272  $ 26,595  $ 26,365
             
Number of branches  393  411  411  411  411  421
Full time equivalent employees  5,322  5,572  5,768  5,874  5,750  5,807
             
Share information and per share metrics:            
Common shares outstanding  353,717  353,388  355,423  355,483  354,127  353,941
Preferred shares outstanding  14,000  14,000  14,000  14,000  14,000  14,000
Treasury shares  12,285  12,614  10,579  10,519  11,875  12,061
Market price (NASDAQ: FNFG):  $ 8.84  $ 8.43  $ 8.33  $ 8.74  $ 9.45  $ 10.62
Book value per common share(4)  10.80  10.71  10.72  13.54  13.40  13.31
Tangible book value per common share(3)(4)  6.78  6.67  6.66  6.32  6.15  6.04
Price/Book 81.85% 78.71% 77.71% 64.55% 70.52% 79.79%
Price/Tangible book(1) 130.38% 126.39% 125.08% 138.29% 153.66% 175.83%
Common stock dividends  $ 0.08  $ 0.08  $ 0.08  $ 0.08  $ 0.08  $ 0.08
Preferred stock dividends  0.54  0.54  0.54  0.54  0.54  0.54
Dividend payout ratio 66.67% 47.06% N/M 42.11% 53.33% 40.00%
Dividend yield (annualized) 3.67% 3.77% 3.81% 3.67% 3.43% 2.99%
             
N/M Not meaningful.
(1) Represents an estimate as of March 31, 2015. All preceding quarters represent actual amounts.
(2) Basel III Transitional rules became effective for us on January 1, 2015. Ratios and amounts presented prior to March 31, 2015 are calculated under Basel I rules. As of March 31, 2015, the ratios presented are calculated under the Basel III Standardized Transitional Approach. Common equity tier 1 capital under Basel III replaced Tier 1 common capital under Basel I. Prior to Basel III becoming effective on January 1, 2015, tier 1 common capital under Basel I was a non-GAAP financial measure.
(3) The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail.
(4) Share count excludes unallocated ESOP shares prior to January 1, 2015 and unvested restricted stock shares.
             
             
First Niagara Financial Group, Inc.            
Appendix A - Non-GAAP Reconciliation            
(in thousands, except per share amounts)            
             
  2015 2014 2013
   First   Fourth   Third   Second   First   Fourth 
   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter 
Financial ratios computed on an operating basis(1):            
Earnings per basic share  $ 0.15  $ 0.15  $ 0.19  $ 0.19  $ 0.17  $ 0.20
Earnings per diluted share  0.15  0.15  0.19  0.19  0.17  0.20
Weighted average shares outstanding - basic(2)  350,741  350,444  350,381  350,229  349,906  349,718
Weighted average shares outstanding - diluted(2)  352,621  352,152  351,898  351,541  351,408  350,699
Noninterest income as a percentage of net revenue(3) 23.83% 22.24% 21.62% 22.93% 22.08% 24.17%
Pre-tax, pre-provision income  101,667  98,714  99,210  108,554  109,091  142,442
Pre-tax, pre-provision income per diluted share  0.29  0.28  0.28  0.31  0.31  0.41
Pre-tax, pre-provision return on average assets 1.07% 1.02% 1.02% 1.14% 1.17% 1.51%
Net interest margin(4) 3.07% 3.11% 3.21% 3.26% 3.33% 3.41%
Interest yield on average loans(4) 3.75% 3.78% 3.80% 3.89% 3.98% 4.04%
Rate paid on interest-bearing liabilities 0.48% 0.45% 0.44% 0.44% 0.44% 0.43%
Efficiency ratio 70.5% 71.5% 71.5% 69.2% 68.6% 61.5%
Effective tax rate 30.0% 3.7% 10.3% 14.5% 19.7% 29.7%
Return on average assets 0.65% 0.63% 0.76% 0.80% 0.74% 0.82%
Return on average equity 6.12% 5.82% 5.76% 6.01% 5.52% 6.18%
Return on average tangible equity(5) 9.30% 8.85% 11.35% 12.01% 11.14% 12.64%
Return on average common equity 5.85% 5.54% 5.54% 5.80% 5.27% 5.99%
Return on average tangible common equity(6) 9.34% 8.85% 11.73% 12.48% 11.47% 13.25%
             
Reconciliation of noninterest expense on operating basis to reported noninterest expense(1):            
Total noninterest expense on operating basis (Non-GAAP)  $ 243,521  $ 248,246  $ 249,461  $ 244,115  $ 238,380  $ 227,148
Restructuring charges  17,517  9,066  2,364  --   10,356  --
Goodwill impairment  --   --   1,100,000  --   --  --
Deposit account remediation  --   (23,000)  45,000  --   --  --
Total reported noninterest expense (GAAP)  $ 261,038  $ 234,312  $ 1,396,825  $ 244,115  $ 248,736  $ 227,148
             
Reconciliation of net operating income to net income(1):            
Net operating income (Non-GAAP)  $ 62,246  $ 60,697  $ 74,009  $ 75,875  $ 68,555  $ 77,690
Nonoperating income and expenses, net of tax:            
Restructuring charges  10,861  6,364  1,555  --   8,345  --
Goodwill impairment  --   --   963,267  --   --  --
Deposit account remediation  --   (14,734)  29,233  --   --  --
Total nonoperating expenses, net of tax  10,861  (8,370)  994,055  --   8,345  --
Net income (loss) (GAAP)  $ 51,385  $ 69,067  $ (920,046)   $ 75,875  $ 60,210  $ 77,690
             
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)  $ 54,699  $ 53,150  $ 66,462  $ 68,328  $ 61,008  $ 70,143
Nonoperating income and expenses, net of tax:            
Restructuring charges  10,861  6,364  1,555  --   8,345  --
Goodwill impairment  --   --   963,267  --   --  --
Deposit account remediation  --   (14,734)  29,233  --   --  --
Total nonoperating income and expenses, net of tax  10,861  (8,370)  994,055  --   8,345  --
Net income (loss) available to common stockholders (GAAP)  $ 43,838  $ 61,520  $ (927,593)   $ 68,328  $ 52,663  $ 70,143
             
Computation of pre-tax,pre-provision income:            
Net interest income  $ 262,944  $ 269,783  $ 273,279  $ 271,812  $ 270,747  $ 280,278
Noninterest income  82,244   77,177   75,392   80,857   76,724   89,312 
Noninterest expense  (261,038)  (234,312)  (1,396,825)  (244,115)  (248,736)  (227,148)
Pre-tax, pre-provision income (loss) (GAAP)  84,150  112,648  (1,048,154)  108,554  98,735  142,442
Add back: non-operating noninterest expenses (1)  17,517  (13,934)  1,147,364  --   10,356  -- 
Pre-tax, pre-provision income (Non-GAAP)(1)  $ 101,667  $ 98,714  $ 99,210  $ 108,554  $ 109,091  $ 142,442
             
(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 2013
   First   Fourth   Third   Second   First   Fourth 
   Quarter  Quarter  Quarter   Quarter   Quarter   Quarter 
Computation of Ending Tangible Assets:            
Total assets  $ 38,907,479  $ 38,551,038  $ 37,972,042  $ 38,627,608  $ 37,991,209  $ 37,628,362
Less: Goodwill and other intangibles  (1,410,800)  (1,417,005)  (1,423,437)  (2,528,481)  (2,535,271)  (2,542,783)
Tangible assets  $ 37,496,679  $ 37,134,033  $ 36,548,605  $ 36,099,127  $ 35,455,938  $ 35,085,579
             
Computation of Average Tangible Assets:            
Total assets  $ 38,706,545  $ 38,317,930  $ 38,591,115  $ 38,212,597  $ 37,378,587  $ 37,378,780
Less: Goodwill and other intangibles  (1,413,765)  (1,420,119)  (2,514,581)  (2,531,612)  (2,546,031)  (2,546,031)
Tangible assets  $ 37,292,780  $ 36,897,811  $ 36,076,534  $ 35,680,985  $ 34,832,556  $ 34,832,749
             
Computation of Ending Tangible Equity:            
Total stockholders' equity  $ 4,125,246  $ 4,092,758  $ 4,095,702  $ 5,081,674  $ 5,026,985  $ 4,993,353
Less: Goodwill and other intangibles  (1,410,800)  (1,417,005)  (1,423,437)  (2,528,481)  (2,535,271)  (2,542,783)
Tangible equity  $ 2,714,446  $ 2,675,753  $ 2,672,265  $ 2,553,193  $ 2,491,714  $ 2,450,570
             
Computation of Ending Tangible Common Equity:            
Total stockholders' equity  $ 4,125,246  $ 4,092,758  $ 4,095,702  $ 5,081,674  $ 5,026,985  $ 4,993,353
Less: Goodwill and other intangibles  (1,410,800)  (1,417,005)  (1,423,437)  (2,528,481)  (2,535,271)  (2,542,783)
Less: Preferred stockholders' equity  (338,002)  (338,002)  (338,002)  (338,002)  (338,002)  (338,002)
Tangible common equity  $ 2,376,444  $ 2,337,751  $ 2,334,263  $ 2,215,191  $ 2,153,712  $ 2,112,568
             
Computation of Average Tangible Equity:            
Total stockholders' equity  $ 4,127,743  $ 4,141,141  $ 5,100,494  $ 5,065,797  $ 5,034,093  $ 4,984,003
Less: Goodwill and other intangibles  (1,413,765)  (1,420,119)  (2,514,581)  (2,531,612)  (2,538,891)  (2,546,031)
Tangible equity  $ 2,713,978  $ 2,721,022  $ 2,585,913  $ 2,534,185  $ 2,495,202  $ 2,437,972
             
Computation of Average Tangible Common Equity:            
Total stockholders' equity  $ 4,127,743  $ 4,141,141  $ 5,100,494  $ 5,065,797  $ 5,034,093  $ 4,984,003
Less: Goodwill and other intangibles  (1,413,765)  (1,420,119)  (2,514,581)  (2,531,612)  (2,538,891)  (2,546,031)
Less: Preferred stockholders' equity  (338,002)  (338,002)  (338,002)  (338,002)  (338,002)  (338,002)
Tangible common equity  $ 2,375,976  $ 2,383,020  $ 2,247,911  $ 2,196,183  $ 2,157,200  $ 2,099,970
             
Computation of Tier 1 Common Capital:            
Tier 1 capital  N/A   $ 2,764,117  $ 2,722,685  $ 2,613,584  $ 2,562,261  $ 2,525,656
Less: Qualifying restricted core capital elements  N/A   (113,785)  (113,556)  (113,330)  (113,107)  (112,886)
Less: Perpetual non-cumulative preferred stock  N/A   (338,002)  (338,002)  (338,002)  (338,002)  (338,002)
Tier 1 common capital (Non-GAAP)  N/A   $ 2,312,330  $ 2,271,127  $ 2,162,252  $ 2,111,152  $ 2,074,768
CONTACT: First Niagara Contacts

         Investors:
         Ram Shankar
         Senior Vice President, Investor Relations
         (716) 270-8623
         [email protected]

         News Media:
         David Lanzillo
         Senior Vice President, Corporate Communications
         (716) 819-5780
         [email protected]

Source: First Niagara Financial Group, Inc.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Press Releases

Related Entities

Dividend, Earnings, Definitive Agreement