- Second quarter operating earnings of $0.18 per diluted
share
- Second quarter GAAP earnings of $0.11 per diluted share,
including merger-related integration expenses and loss associated
with de-risking high-yield energy bond exposure
- Average loans increased 4% YOY
- Average commercial loans (CRE and commercial business) up 5%
YOY
- Average consumer loans increased 4% YOY
- Average transactional deposit balances increased 6% YOY
- Average interest-bearing checking deposit balances increased 6%
YOY
- Average noninterest-bearing deposit balances increased 5%
YOY
- Originated net charge-offs averaged 0.27% of originated loans,
down 4 basis points YOY
BUFFALO, N.Y., July 29, 2016 (GLOBE NEWSWIRE) -- First Niagara
Financial Group, Inc. (NASDAQ:FNFG) today reported GAAP net income
available to common shareholders of $38.9 million, or $0.11 per
diluted share for the second quarter of 2016, compared to $40.8
million, or $0.11 per diluted share, for the quarter ended March
31, 2016. Excluding the impact of $7 million in after-tax losses on
the sale of the company’s entire high-yield energy bond exposure as
well as $17 million in after-tax merger-related costs incurred
during the second quarter of 2016, operating net income available
to common shareholders was $62.7 million, or $0.18 per diluted
share.
“Our second quarter performance is more evidence of the strength
of our lending and deposit franchises,” said Gary M. Crosby,
President and Chief Executive Officer. “During the second quarter,
our core businesses continued to demonstrate positive momentum,
with 5% year-over-year growth in average commercial loans and 6%
growth in average transactional deposit balances. Consistent
with our time-tested policy of prudent and disciplined credit
underwriting, our commercial and consumer loan portfolios continue
to perform well as evidenced by our stable credit metrics. The
First Niagara team delivered this solid performance while at the
same time staying very focused on preparing for the completion of
our merger with KeyCorp.”
“Given an expected prolonged uncertain economic environment, in
early June we significantly de-risked our investment securities
portfolio by exiting positions in high-yield energy bonds resulting
in an after-tax loss of $7 million,” said Gregory W. Norwood, Chief
Financial Officer. “Noninterest income, excluding this loss,
increased 1% from the first quarter driven by higher insurance
commissions, increased derivative and syndication volumes and
higher mortgage banking income.”
Second Quarter Results
In the second quarter of 2016, First Niagara reported GAAP net
income available to common shareholders of $38.9 million, or $0.11
per diluted share, compared to $40.8 million, or $0.11 per diluted
share in the first quarter of 2016. Second quarter 2016 results
were impacted by $17 million in after-tax merger integration
related and restructuring costs as well as $7 million in after-tax
losses on the sale of the company’s entire high-yield energy bond
exposure. In the first quarter of 2016, after-tax merger
integration related and restructuring costs totaled $9 million.
Excluding these items, operating net income available to common
shareholders was $62.7 million, or $0.18 per diluted share in the
second quarter of 2016, compared to $49.9 million, or $0.14 per
diluted share in the first quarter of 2016.
Compared to the first quarter of 2016, the change in operating
net income available to common shareholders was primarily driven
by:
- A $5 million or 2% decrease in net interest income driven
primarily by the impact of lower reinvestment rates on cashflows
from the investment securities portfolio, and continued mix shift
towards non-credit investment securities.
- An $11 million decrease in provision for credit losses from
elevated first quarter levels that included a reserve build towards
the company’s exposure to scrap metal companies and demolition
companies whose profitability is partially dependent on the sale of
scrap metal.
- A $1 million or 1% increase in operating noninterest income
driven by higher capital markets income due to higher syndication
and derivative volumes, higher insurance commissions, and greater
mortgage banking revenues.
- A $9 million or 4% decrease in operating noninterest expenses
primarily driven by lower employee count and the associated impact
on compensation and other benefits expenses, lower professional
services and marketing spend, lower building maintenance costs and
lower OREO expenses.
- A lower effective tax rate attributable primarily to benefits
from certain tax-advantaged investments.
In the second quarter of 2015, First Niagara reported GAAP net
income available to common shareholders of $53.5 million, or $0.15
per diluted share. Compared to the second quarter of 2015, the
change in operating net income available to common shareholders was
primarily driven by:
- A modest decline of $1 million in net interest income from the
year-ago quarter that included $3 million of benefits from discount
accretion on payoffs of certain Collateralized Loan Obligations
(CLOs) and acquired loans, offset by a 4% increase in average
earning asset balances.
- A $9 million decrease in provision for loan losses driven
primarily by lower net charge-offs.
- An 8% decrease in noninterest income, driven by lower wealth
management income, insurance commissions, investment gains and
capital markets income.
- A 6% or $15 million decline in noninterest expense driven
primarily by lower third party professional services expenses,
lower marketing spend, lower amortization of intangibles and lower
compensation and benefits expenses.
Operating Results (Non-GAAP) |
Q2 2016 |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Net interest income |
$ |
262.1 |
|
$ |
267.6 |
|
$ |
266.5 |
|
$ |
263.5 |
|
$ |
263.1 |
|
Provision for credit losses |
|
11.9 |
|
|
22.5 |
|
|
22.9 |
|
|
19.8 |
|
|
20.8 |
|
Noninterest income |
|
79.6 |
|
|
79.1 |
|
|
89.4 |
|
|
83.4 |
|
|
86.6 |
|
Noninterest expense |
|
233.0 |
|
|
241.9 |
|
|
247.4 |
|
|
245.4 |
|
|
247.9 |
|
Operating net income |
|
70.3 |
|
|
57.4 |
|
|
62.8 |
|
|
60.5 |
|
|
61.0 |
|
Preferred stock dividend |
|
7.5 |
|
|
7.5 |
|
|
7.5 |
|
|
7.5 |
|
|
7.5 |
|
Operating net income available to common |
$ |
62.7 |
|
$ |
49.9 |
|
$ |
55.3 |
|
$ |
52.9 |
|
$ |
53.5 |
|
Weighted average diluted shares outstanding |
|
353.8 |
|
|
354.0 |
|
|
353.8 |
|
|
353.2 |
|
|
352.8 |
|
Operating earnings per diluted share |
$ |
0.18 |
|
$ |
0.14 |
|
$ |
0.15 |
|
$ |
0.15 |
|
$ |
0.15 |
|
|
|
|
|
|
|
Reported Results (GAAP) |
Q2 2016 |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Operating net income before non-op. items |
$ |
70.3 |
|
$ |
57.4 |
|
$ |
62.8 |
|
$ |
60.5 |
|
$ |
61.0 |
|
Non-operating items (a) |
|
23.9 |
|
|
9.1 |
|
|
12.0 |
|
|
- |
|
|
- |
|
Net Income |
|
46.4 |
|
|
48.3 |
|
|
50.8 |
|
|
60.5 |
|
|
61.0 |
|
Preferred stock dividend |
|
7.5 |
|
|
7.5 |
|
|
7.5 |
|
|
7.5 |
|
|
7.5 |
|
Net income available to common |
$ |
38.9 |
|
$ |
40.8 |
|
$ |
43.3 |
|
$ |
52.9 |
|
$ |
53.5 |
|
Weighted average diluted shares outstanding |
|
353.8 |
|
|
354.0 |
|
|
353.8 |
|
|
353.2 |
|
|
352.8 |
|
Earnings per diluted share |
$ |
0.11 |
|
$ |
0.11 |
|
$ |
0.12 |
|
$ |
0.15 |
|
$ |
0.15 |
|
All amounts in
millions except earnings per diluted share. |
(a |
) Q2 2016: Non-operating
charges comprised of merger related costs including employee
retention expenses, classification of compensation of certain
personnel dedicated to merger integration efforts, professional
services and legal fees incurred to support merger integration
efforts, and loss on the sale of high-yield energy bond exposure,
net of taxes. |
|
Q1 2016: Non-operating
charges comprised of merger related costs including employee
retention expenses, classification of compensation of certain
personnel dedicated to merger integration efforts as well as costs
related to securing shareholder approval for the merger, net of
taxes. |
|
Q4 2015: Non-operating
charges primarily comprised of merger related costs including
investment banker and other professional services fees, employee
retention expenses, classification of compensation of certain
personnel dedicated to merger integration efforts as well as
third-party professional fees incurred in connection with the
overstatement of allowance resulting from mid-level employee
misconduct, net of taxes. |
|
|
Loans
Average loans increased 2% annualized from the prior quarter to
$24.2 billion, driven primarily by increases in the company’s
commercial real estate (CRE), commercial business (C&I), and
indirect auto portfolios. On an end-of-period basis, total loans
increased 3% annualized from the prior quarter driven by a 12%
annualized increase in indirect auto loans and 5% increase in
commercial real estate loans.
Average commercial loans, which include commercial business
(C&I) and commercial real estate (CRE) loans, increased 2%
annualized from prior quarter to $14.8 billion, primarily driven by
growth in the company’s New York, New England, and Western
Pennsylvania regions.
- Average CRE loans increased 2% annualized from the prior
quarter to $8.7 billion driven by new commercial mortgage term
financing as well as construction lending volumes.
- Average C&I loans increased 3% annualized QOQ to $6.1
billion reflecting middle market origination activity across the
company’s footprint, partially offset by pay-downs in the capital
markets loan portfolio.
Average consumer loans increased 2% annualized from prior
quarter to $9.4 billion.
- Average indirect auto loan balances increased 13% annualized or
by $80 million to $2.5 billion, as strong new origination activity
was partially offset by increased pay-downs. Indirect auto
originations during the quarter totaled $328 million. New
originations in the second quarter yielded 3.50%, net of dealer
reserve, compared to 3.41% on originations in the prior
quarter.
- Average residential real estate and home equity loan balances
were down modestly from the prior quarter reflecting higher
customer refinancing activity given low mortgage interest
rates.
- Credit card balances were down $9 million, or 12% annualized
due to seasonal factors.
Average Loans |
Q2 2016 |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Commercial real estate |
$ |
8,664 |
|
$ |
8,625 |
|
$ |
8,476 |
|
$ |
8,277 |
|
$ |
8,257 |
|
Commercial business |
|
6,112 |
|
|
6,062 |
|
|
5,971 |
|
|
5,972 |
|
|
5,830 |
|
Total commercial |
|
14,776 |
|
|
14,687 |
|
|
14,447 |
|
|
14,249 |
|
|
14,087 |
|
Residential real estate |
|
3,338 |
|
|
3,346 |
|
|
3,346 |
|
|
3,338 |
|
|
3,326 |
|
Home equity |
|
3,055 |
|
|
3,066 |
|
|
3,052 |
|
|
3,001 |
|
|
2,963 |
|
Indirect auto |
|
2,500 |
|
|
2,420 |
|
|
2,369 |
|
|
2,293 |
|
|
2,238 |
|
Credit cards |
|
288 |
|
|
297 |
|
|
305 |
|
|
306 |
|
|
304 |
|
Other consumer |
|
233 |
|
|
242 |
|
|
250 |
|
|
255 |
|
|
260 |
|
Total consumer |
|
9,414 |
|
|
9,371 |
|
|
9,322 |
|
|
9,193 |
|
|
9,091 |
|
Total loans |
$ |
24,190 |
|
$ |
24,058 |
|
$ |
23,769 |
|
$ |
23,442 |
|
$ |
23,178 |
|
All amounts in millions. |
|
Credit Quality
At June 30, 2016, the allowance for loan losses was $253
million, unchanged from March 31, 2016. In the second
quarter, provision for loan losses totaled $12.4 million, compared
to $22.5 million in the prior quarter. Nonperforming assets
comprised 0.60% of total assets, essentially flat compared to March
31, 2016. Information for both the originated and acquired
portfolios follows.
|
Q2 2016 |
|
Q1 2016 |
$ in millions |
Originated |
Acquired |
Total |
|
Originated |
Acquired |
Total |
Provision for loan losses* |
$ |
14.1 |
|
$ |
(1.8 |
) |
$ |
12.4 |
|
|
$ |
22.5 |
|
$ |
0.0 |
|
$ |
22.5 |
|
Net charge-offs |
|
14.2 |
|
|
(1.9 |
) |
|
12.3 |
|
|
|
11.4 |
|
|
0.4 |
|
|
11.8 |
|
NCOs/ Avg Loans |
|
0.27 |
% |
|
(0.28 |
)% |
|
0.20 |
% |
|
|
0.22 |
% |
|
0.05 |
% |
|
0.20 |
% |
Total loans** |
$ |
21,678 |
|
$ |
2,655 |
|
$ |
24,333 |
|
|
$ |
21,362 |
|
$ |
2,817 |
|
$ |
24,178 |
|
Allowance |
$ |
247.7 |
|
$ |
5.1 |
|
$ |
252.8 |
|
|
$ |
247.8 |
|
$ |
5.0 |
|
$ |
252.8 |
|
Allowance/Loans |
|
1.14 |
% |
|
0.19 |
% |
|
1.04 |
% |
|
|
1.16 |
% |
|
0.18 |
% |
|
1.05 |
% |
Nonperforming Loans |
$ |
198.3 |
|
$ |
24.7 |
|
$ |
223.0 |
|
|
$ |
196.7 |
|
$ |
24.9 |
|
$ |
221.5 |
|
NPLs/ Loans |
|
0.91 |
% |
|
0.93 |
% |
|
0.92 |
% |
|
|
0.92 |
% |
|
0.88 |
% |
|
0.92 |
% |
Criticized |
$ |
803.7 |
|
$ |
154.5 |
|
$ |
958.2 |
|
|
$ |
775.9 |
|
$ |
178.5 |
|
$ |
954.5 |
|
Criticized as % of Loans |
|
3.71 |
% |
|
5.82 |
% |
|
3.94 |
% |
|
|
3.63 |
% |
|
6.34 |
% |
|
3.95 |
% |
Classified |
$ |
512.6 |
|
$ |
123.2 |
|
$ |
635.8 |
|
|
$ |
462.9 |
|
$ |
138.6 |
|
$ |
601.5 |
|
Classified as % of Loans |
|
2.36 |
% |
|
4.64 |
% |
|
2.61 |
% |
|
|
2.17 |
% |
|
4.92 |
% |
|
2.49 |
% |
(*) Excludes provision for unfunded
commitment of $(0.5) million in 2Q16 and zero in 1Q16 |
(**) Acquired loans net of
associated credit discount; see accompanying tables for further
information |
|
Originated loans
The second quarter 2016 provision for loan losses on originated
loans totaled $14 million, compared to $23 million in the first
quarter of 2016. The decrease in provision expense from the linked
quarter was driven by a $7 million reserve release attributable
specifically to favorable resolutions and pay-downs in the
company’s exposure to scrap metal and demolition companies and
borrowers that serve the energy sector, and offset by higher net
charge-offs. At June 30, 2016, the allowance for loan losses on
originated loans totaled $248 million or 1.14% of such loans,
compared to $248 million or 1.16% of such loans at March 31, 2016.
The decrease in allowance coverage ratio primarily reflects the
aforementioned draw-down of reserves previously built toward the
company’s exposure to borrowers serving the energy sector as well
as scrap metal and demolition companies.
Originated net charge-offs in the first quarter equaled $14
million or 27 basis points of average originated loans, compared to
22 basis points in the first quarter of 2016. The sequential
increase in net charge-offs was driven in large part by lower
commercial recoveries from elevated first quarter levels.
At June 30, 2016, nonperforming originated loans totaled $198
million, or 0.91% of originated loans, largely unchanged from March
31, 2016.
Acquired loans
In the second quarter of 2016, the provision for loan losses
related to the acquired loan portfolio was a negative $2 million,
compared to zero provision in the prior quarter. The negative
provision was consistent with a $2 million net recovery on loans
previously charged-off. At June 30, 2016, the allowance for
loan losses on acquired loans totaled $5 million, unchanged from
March 31, 2016. Acquired nonperforming loans totaled $25 million,
also unchanged from the prior quarter. At June 30, 2016,
remaining credit marks available to absorb losses on a pool-by-pool
basis totaled $54 million.
Deposits
Average deposits increased 5% annualized from the prior quarter
to $29.2 billion.
- Average non-interest checking deposit balances increased 3%
annualized from the prior quarter to $5.7 billion, driven by retail
and business deposit balances, particularly in the company’s
Tri-state markets.
- Time deposits increased 24% annualized to $3.9 billion, driven
primarily by a $182 million increase in retail certificate of
deposit (CD) balances across the company’s footprint.
- Money market deposit balances were down 3% annualized from the
prior quarter driven by decreases in municipal and business deposit
balances.
- Average transactional deposit balances, which include
interest-bearing and noninterest-bearing checking account balances,
increased 6% from the year-ago period and 5% annualized from the
prior quarter. These balances currently represent 38% of the
company’s deposit balances, unchanged from the prior
quarter.
- The 7% annualized increase in interest-checking deposit
balances was driven by a $102 million increase in retail interest
checking balances, primarily in the company’s New York and Western
Pennsylvania markets.
- Average savings balances increased 9% annualized from the prior
quarter driven by higher retail balances across the company’s
footprint.
Average Deposits |
Q2 2016 |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Noninterest-bearing deposits |
$ |
5,705 |
|
$ |
5,666 |
|
$ |
5,868 |
|
$ |
5,661 |
|
$ |
5,427 |
|
Savings accounts |
|
3,448 |
|
|
3,371 |
|
|
3,364 |
|
|
3,427 |
|
|
3,494 |
|
Interest-bearing checking |
|
5,455 |
|
|
5,362 |
|
|
5,333 |
|
|
5,165 |
|
|
5,131 |
|
Money market deposits |
|
10,632 |
|
|
10,725 |
|
|
10,719 |
|
|
10,403 |
|
|
10,251 |
|
Certificates of deposit |
|
3,948 |
|
|
3,726 |
|
|
3,515 |
|
|
3,962 |
|
|
3,917 |
|
Total deposits |
$ |
29,188 |
|
$ |
28,850 |
|
$ |
28,799 |
|
$ |
28,618 |
|
$ |
28,220 |
|
All amounts in
millions.
|
|
Net Interest Income
Second quarter 2016 GAAP net interest income of $262 million
decreased $5 million from the prior quarter, driven primarily by
the impact of lower reinvestment rates on cashflows from the
investment securities portfolio, continued mix shift towards lower
yielding non-credit investment securities, and to a lesser extent,
higher borrowing costs attributable to higher short-term interest
rates. Normalized net interest margin of 2.94% was down 5 basis
points from the prior quarter.
- Yields on loans decreased 1 basis point to 3.72% primarily
reflecting a mix shift within loan categories as well as greater
mortgage prepayment and refinancing activity.
- Yields on investment securities decreased 15 basis points to
2.77% reflecting reinvestment of cashflows from residential
mortgage-backed securities at lower interest rates and a mix shift
toward lower yielding non-credit investment securities, and to a
lesser extent, the impact of the sale of high-yield energy
bonds.
- The average cost of interest-bearing deposits increased 2 basis
points from the prior quarter to 0.34%.
Net Interest Income (Tax Equivalent) |
Q2 2016 |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Quarter as Reported |
$ |
267.4 |
|
$ |
272.8 |
|
$ |
271.7 |
|
$ |
268.5 |
|
$ |
268.0 |
|
Less: CLO pay-off discount recognition |
|
- |
|
|
- |
|
|
- |
|
|
(1.2 |
) |
|
(2.3 |
) |
Add: CMO Retroactive premium amortization |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1.1 |
|
Add: CRE prepayment penalties |
|
- |
|
|
- |
|
|
(0.5 |
) |
|
- |
|
|
- |
|
Less: Early loan payoffs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1.7 |
) |
Less: Other miscellaneous items |
|
1.4 |
|
|
(0.6 |
) |
|
(0.5 |
) |
|
- |
|
|
- |
|
Sub-Total |
|
1.4 |
|
|
(0.6 |
) |
|
(1.0 |
) |
|
(1.2 |
) |
|
(2.9 |
) |
Normalized Net Interest Income |
$ |
268.8 |
|
$ |
272.2 |
|
$ |
270.7 |
|
$ |
267.3 |
|
$ |
265.1 |
|
All amounts in millions. |
Net Interest Margin (Tax Equivalent) |
Q2 2016 |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Quarter as Reported |
|
2.92 |
% |
|
3.00 |
% |
|
2.98 |
% |
|
2.98 |
% |
|
3.02 |
% |
Less: CLO pay-off discount recognition |
|
- |
|
|
- |
|
|
- |
|
|
(0.01 |
)% |
|
(0.03 |
)% |
Add: CMO Retroactive premium amortization |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
0.01 |
% |
Add: CRE prepayment penalties |
|
- |
|
|
- |
|
|
(0.01 |
)% |
|
- |
|
|
- |
|
Less: Early loan payoffs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(0.02 |
%) |
Less: Other miscellaneous items |
|
0.02 |
% |
|
(0.01 |
)% |
|
(0.01 |
)% |
|
- |
|
|
- |
|
Sub-Total |
|
0.02 |
% |
|
(0.01 |
)% |
|
(0.02 |
)% |
|
(0.01 |
)% |
|
(0.03 |
)% |
Normalized Net Interest Margin |
|
2.94 |
% |
|
2.99 |
% |
|
2.96 |
% |
|
2.97 |
% |
|
2.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
On a reported basis, second quarter 2016 noninterest income was
$69 million and reflected $11 million in pre-tax losses incurred on
the sale of the company’s entire high-yield energy bond exposure
following recent recovery in their prices. Excluding this loss,
operating fee income was $80 million, and increased $1 million or
1% from the prior quarter.
- Deposit service charges increased 2% from the seasonally low
levels in the first quarter.
- Insurance commissions increased $1 million or 8% sequentially,
driven in large part by both commercial and personal lines.
- Merchant and card fees increased $1 million or 7% driven by
higher purchase volumes.
- Wealth management revenue decreased $1 million from prior
quarter driven in part by equity market volatility.
- Capital markets income, which includes income from derivatives
and syndications, increased $2 million, primarily driven by robust
derivatives and syndication volumes in the quarter.
- Mortgage banking revenues were $2 million higher than the prior
quarter reflecting strong locked volumes driven by low mortgage
rates. Locked volumes and gain-on-sale margin increased QOQ.
- Other noninterest income decreased $5 million from the prior
quarter driven by lower investment gains as well as higher
amortization of historic tax credit investments.
Operating Noninterest Income (Non-GAAP) |
Q2 2016 |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Deposit service charges |
$ |
21.8 |
|
$ |
21.5 |
|
$ |
22.9 |
|
$ |
22.9 |
|
$ |
22.2 |
|
Insurance commissions |
|
15.7 |
|
|
14.6 |
|
|
14.9 |
|
|
18.3 |
|
|
17.1 |
|
Merchant and card fees |
|
13.2 |
|
|
12.3 |
|
|
13.3 |
|
|
13.4 |
|
|
13.3 |
|
Wealth management services |
|
13.0 |
|
|
13.6 |
|
|
14.6 |
|
|
14.6 |
|
|
15.7 |
|
Mortgage banking |
|
5.5 |
|
|
4.0 |
|
|
4.9 |
|
|
5.1 |
|
|
5.8 |
|
Capital markets income |
|
4.3 |
|
|
2.3 |
|
|
6.6 |
|
|
2.6 |
|
|
5.3 |
|
Lending and leasing |
|
4.2 |
|
|
4.1 |
|
|
4.2 |
|
|
4.5 |
|
|
4.0 |
|
Bank owned life insurance |
|
3.2 |
|
|
3.5 |
|
|
3.3 |
|
|
2.8 |
|
|
3.2 |
|
Other income |
|
(1.5 |
) |
|
3.2 |
|
|
4.7 |
|
|
(0.7 |
) |
|
0.1 |
|
Total noninterest income |
$ |
79.6 |
|
$ |
79.1 |
|
$ |
89.4 |
|
$ |
83.4 |
|
$ |
86.6 |
|
All amounts in millions. |
|
Noninterest Expense
Excluding $25 million in merger integration related costs,
operating noninterest expenses totaled $233 million in the second
quarter of 2016, or 4% lower than first quarter 2016 levels. The
quarter-over-quarter decrease was primarily driven by lower
employee-related expenses, marketing and professional services
expenses and other volume-related costs.
- Salaries and benefits expense of $112 million declined 2% or $3
million from the prior quarter driven by lower employee count and
the associated impact on compensation and other benefits
expenses.
- Occupancy and equipment expenses decreased 4%, due primarily to
lower building maintenance expenses.
- Technology and communications increased 2% from prior quarter
due to higher technology outsourcing expenses.
- Marketing and advertising expenses were $2 million lower
compared to first quarter levels, reflecting lower promotional
campaigns in the second quarter.
- Professional services fees decreased $3 million or 21% from
first quarter levels and continued to be driven by pause of certain
projects and the associated decline in third party services
expenses.
- Other expenses decreased $2 million sequentially driven in part
by lower other real estate (ORE) valuation write-downs and other
volume-related corporate expenses.
Operating Noninterest Expense (Non-GAAP)* |
Q2 2016 |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Salaries and employee benefits |
$ |
112.1 |
|
$ |
115.0 |
|
$ |
113.1 |
|
$ |
113.8 |
|
$ |
113.6 |
|
Occupancy and equipment |
|
25.3 |
|
|
26.5 |
|
|
26.0 |
|
|
25.5 |
|
|
26.0 |
|
Technology and communications |
|
36.3 |
|
|
35.4 |
|
|
38.2 |
|
|
38.3 |
|
|
36.5 |
|
Marketing and advertising |
|
7.1 |
|
|
8.8 |
|
|
9.7 |
|
|
8.4 |
|
|
10.3 |
|
Professional services |
|
9.9 |
|
|
12.4 |
|
|
15.4 |
|
|
18.1 |
|
|
16.3 |
|
Amortization of intangibles |
|
3.2 |
|
|
3.9 |
|
|
4.0 |
|
|
4.0 |
|
|
5.1 |
|
Federal deposit insurance premiums |
|
11.3 |
|
|
10.5 |
|
|
10.4 |
|
|
10.0 |
|
|
11.8 |
|
Other expense |
|
27.8 |
|
|
29.4 |
|
|
30.7 |
|
|
27.3 |
|
|
28.4 |
|
Total operating noninterest expense |
$ |
233.0 |
|
$ |
241.9 |
|
$ |
247.4 |
|
$ |
245.4 |
|
$ |
247.9 |
|
*All amounts in millions. See
appendix for reconciliation of GAAP to Non-GAAP amounts
|
|
In the second quarter of 2016, the operating efficiency ratio
was 68.2%, compared to 69.8% in the prior quarter.
Capital
Beginning in the first quarter of 2015, all regulatory capital
ratios and amounts were calculated under the Basel III standardized
transitional approach. At June 30, 2016, the company’s consolidated
Total Risk Based capital and Common Equity Tier 1 capital ratios
were 12.2% and 8.7%, respectively, up from 12.1% and 8.6% at March
31, 2016. The company remains well above current regulatory
guidelines for well-capitalized institutions.
About First Niagara
First Niagara, through its wholly owned subsidiary, First
Niagara Bank, N.A., is a multi-state community-oriented bank with
approximately 390 branches, $40 billion in assets, $29 billion in
deposits, and approximately 5,300 employees providing financial
services to individuals, families and businesses across New York,
Pennsylvania, Connecticut and Massachusetts. For more information,
visit www.firstniagara.com.
Safe Harbor Statement
Non-GAAP Measures - This news release contains financial
information determined by methods other than in accordance with
accounting principles generally accepted in the United States of
America (GAAP). The company believes that non-GAAP financial
measures provide a meaningful comparison of the underlying
operational performance of the company, and facilitate investors’
assessments of business and performance trends in comparison to
others in the financial services industry. In addition, the
company believes the exclusion of these non-operating items enables
management to perform a more effective evaluation and comparison of
the company’s results and to assess performance in relation to the
company’s ongoing operations. These disclosures should not be
viewed as a substitute for financial measures determined in
accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other
companies. Where non-GAAP disclosures are used in this news
release, the comparable GAAP financial measure, as well as the
reconciliation to the comparable GAAP financial measure, can be
found in this document.
Forward-Looking Statements - This press release contains
forward-looking statements with respect to the financial condition
and results of operations of First Niagara Financial Group, Inc.
including, without limitations, statements relating to the earnings
outlook of the company. These forward-looking statements
involve certain risks and uncertainties. Factors that may
cause actual results to differ materially from those contemplated
by such forward-looking statements include, among others, the
following possibilities: (1) changes in the interest rate
environment; (2) competitive pressure among financial services
companies; (3) general economic conditions including an increase in
non-performing loans that could result from an economic downturn;
(4) changes in legislation or regulatory requirements; (5)
difficulties in continuing to improve operating efficiencies; and
(6) impact of the pending merger agreement on customers and
employees.
First Niagara Financial Group, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Income
Statement Highlights - Reported Basis |
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Six months
ended |
|
|
|
|
|
|
Second |
First |
|
Fourth |
Third |
Second |
First |
|
June 30, |
June 30, |
|
|
|
|
|
|
Quarter |
Quarter |
|
Quarter |
Quarter |
Quarter |
Quarter |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases |
|
$ |
219,767 |
|
$ |
219,050 |
|
|
$ |
214,945 |
|
$ |
211,407 |
|
$ |
211,899 |
|
$ |
210,371 |
|
|
$ |
438,817 |
|
$ |
422,270 |
|
|
|
Investment
securities and other |
|
|
86,381 |
|
|
89,759 |
|
|
|
88,825 |
|
|
87,914 |
|
|
86,356 |
|
|
86,280 |
|
|
|
176,140 |
|
|
172,636 |
|
|
|
|
Total interest income |
|
|
306,148 |
|
|
308,809 |
|
|
|
303,770 |
|
|
299,321 |
|
|
298,255 |
|
|
296,651 |
|
|
|
614,957 |
|
|
594,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
19,970 |
|
|
18,640 |
|
|
|
17,147 |
|
|
17,040 |
|
|
16,568 |
|
|
15,344 |
|
|
|
38,610 |
|
|
31,912 |
|
|
|
Borrowings |
|
|
24,067 |
|
|
22,578 |
|
|
|
20,074 |
|
|
18,790 |
|
|
18,577 |
|
|
18,363 |
|
|
|
46,645 |
|
|
36,940 |
|
|
|
|
Total interest expense |
|
|
44,037 |
|
|
41,218 |
|
|
|
37,221 |
|
|
35,830 |
|
|
35,145 |
|
|
33,707 |
|
|
|
85,255 |
|
|
68,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
262,111 |
|
|
267,591 |
|
|
|
266,549 |
|
|
263,491 |
|
|
263,110 |
|
|
262,944 |
|
|
|
529,702 |
|
|
526,054 |
|
|
Provision
for credit losses |
|
|
11,868 |
|
|
22,519 |
|
|
|
22,900 |
|
|
19,768 |
|
|
20,756 |
|
|
12,765 |
|
|
|
34,387 |
|
|
33,521 |
|
|
|
|
|
Net interest
income after provision |
|
|
250,243 |
|
|
245,072 |
|
|
|
243,649 |
|
|
243,723 |
|
|
242,354 |
|
|
250,179 |
|
|
|
495,315 |
|
|
492,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
service charges |
|
|
21,824 |
|
|
21,507 |
|
|
|
22,919 |
|
|
22,944 |
|
|
22,208 |
|
|
20,389 |
|
|
|
43,331 |
|
|
42,597 |
|
|
|
Insurance
commissions |
|
|
15,735 |
|
|
14,562 |
|
|
|
14,920 |
|
|
18,252 |
|
|
17,060 |
|
|
15,714 |
|
|
|
30,297 |
|
|
32,774 |
|
|
|
Merchant
and card fees |
|
|
13,222 |
|
|
12,329 |
|
|
|
13,318 |
|
|
13,423 |
|
|
13,317 |
|
|
11,907 |
|
|
|
25,551 |
|
|
25,224 |
|
|
|
Wealth
management services |
|
|
13,048 |
|
|
13,610 |
|
|
|
14,567 |
|
|
14,572 |
|
|
15,718 |
|
|
14,650 |
|
|
|
26,658 |
|
|
30,368 |
|
|
|
Mortgage
banking |
|
|
5,532 |
|
|
3,950 |
|
|
|
4,894 |
|
|
5,070 |
|
|
5,783 |
|
|
4,887 |
|
|
|
9,482 |
|
|
10,670 |
|
|
|
Capital
markets income |
|
|
4,342 |
|
|
2,323 |
|
|
|
6,580 |
|
|
2,608 |
|
|
5,284 |
|
|
4,152 |
|
|
|
6,665 |
|
|
9,436 |
|
|
|
Lending and
leasing |
|
|
4,230 |
|
|
4,051 |
|
|
|
4,248 |
|
|
4,487 |
|
|
3,998 |
|
|
4,353 |
|
|
|
8,281 |
|
|
8,351 |
|
|
|
Bank owned
life insurance |
|
|
3,174 |
|
|
3,540 |
|
|
|
3,259 |
|
|
2,819 |
|
|
3,160 |
|
|
3,592 |
|
|
|
6,714 |
|
|
6,752 |
|
|
|
Loss on
sale of high yield securities |
|
|
(11,001 |
) |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(11,001 |
) |
|
- |
|
|
|
Other
income |
|
|
(1,484 |
) |
|
3,196 |
|
|
|
4,696 |
|
|
(732 |
) |
|
79 |
|
|
2,600 |
|
|
|
1,712 |
|
|
2,679 |
|
|
|
|
Total noninterest income |
|
|
68,622 |
|
|
79,068 |
|
|
|
89,401 |
|
|
83,443 |
|
|
86,607 |
|
|
82,244 |
|
|
|
147,690 |
|
|
168,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
112,142 |
|
|
115,007 |
|
|
|
113,063 |
|
|
113,794 |
|
|
113,561 |
|
|
111,973 |
|
|
|
227,149 |
|
|
225,534 |
|
|
|
Occupancy
and equipment |
|
|
25,338 |
|
|
26,466 |
|
|
|
25,961 |
|
|
25,538 |
|
|
26,021 |
|
|
27,332 |
|
|
|
51,804 |
|
|
53,353 |
|
|
|
Technology
and communications |
|
|
36,276 |
|
|
35,419 |
|
|
|
38,232 |
|
|
38,301 |
|
|
36,486 |
|
|
35,061 |
|
|
|
71,695 |
|
|
71,547 |
|
|
|
Marketing
and advertising |
|
|
7,099 |
|
|
8,821 |
|
|
|
9,719 |
|
|
8,445 |
|
|
10,297 |
|
|
9,863 |
|
|
|
15,920 |
|
|
20,160 |
|
|
|
Professional services |
|
|
9,858 |
|
|
12,401 |
|
|
|
15,361 |
|
|
18,052 |
|
|
16,321 |
|
|
13,070 |
|
|
|
22,259 |
|
|
29,391 |
|
|
|
Amortization of intangibles |
|
|
3,235 |
|
|
3,860 |
|
|
|
3,972 |
|
|
4,001 |
|
|
5,092 |
|
|
6,205 |
|
|
|
7,095 |
|
|
11,297 |
|
|
|
Federal
deposit insurance premiums |
|
|
11,281 |
|
|
10,460 |
|
|
|
10,383 |
|
|
10,026 |
|
|
11,750 |
|
|
11,158 |
|
|
|
21,741 |
|
|
22,908 |
|
|
|
Merger and
acquisition integration expenses |
|
|
24,772 |
|
|
13,473 |
|
|
|
14,198 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
38,245 |
|
|
- |
|
|
|
Restructuring charges |
|
|
- |
|
|
- |
|
|
|
3,378 |
|
|
- |
|
|
- |
|
|
17,517 |
|
|
|
- |
|
|
17,517 |
|
|
|
Other
expense |
|
|
27,752 |
|
|
29,445 |
|
|
|
30,728 |
|
|
27,276 |
|
|
28,371 |
|
|
28,859 |
|
|
|
57,197 |
|
|
57,230 |
|
|
|
|
Total noninterest expense |
|
|
257,753 |
|
|
255,352 |
|
|
|
264,995 |
|
|
245,433 |
|
|
247,899 |
|
|
261,038 |
|
|
|
513,105 |
|
|
508,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax |
|
|
61,112 |
|
|
68,788 |
|
|
|
68,055 |
|
|
81,733 |
|
|
81,062 |
|
|
71,385 |
|
|
|
129,900 |
|
|
152,447 |
|
|
Income tax
expense |
|
|
14,680 |
|
|
20,481 |
|
|
|
17,255 |
|
|
21,251 |
|
|
20,052 |
|
|
20,000 |
|
|
|
35,161 |
|
|
40,052 |
|
|
|
|
Net
income |
|
|
46,432 |
|
|
48,307 |
|
|
|
50,800 |
|
|
60,482 |
|
|
61,010 |
|
|
51,385 |
|
|
|
94,739 |
|
|
112,395 |
|
|
Preferred
stock dividend |
|
|
7,547 |
|
|
7,547 |
|
|
|
7,547 |
|
|
7,547 |
|
|
7,547 |
|
|
7,547 |
|
|
|
15,094 |
|
|
15,094 |
|
|
|
|
Net income available to common
stockholders |
|
$ |
38,885 |
|
$ |
40,760 |
|
|
$ |
43,253 |
|
$ |
52,935 |
|
$ |
53,463 |
|
$ |
43,838 |
|
|
$ |
79,645 |
|
$ |
97,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per basic share |
|
$ |
0.11 |
|
$ |
0.11 |
|
|
$ |
0.12 |
|
$ |
0.15 |
|
$ |
0.15 |
|
|
0.12 |
|
|
$ |
0.22 |
|
|
0.27 |
|
|
Earnings
per diluted share |
|
$ |
0.11 |
|
$ |
0.11 |
|
|
$ |
0.12 |
|
$ |
0.15 |
|
$ |
0.15 |
|
|
0.12 |
|
|
$ |
0.22 |
|
|
0.27 |
|
|
Weighted
average shares outstanding - basic(1) |
|
|
352,134 |
|
|
351,372 |
|
|
|
351,306 |
|
|
351,293 |
|
|
351,126 |
|
|
350,741 |
|
|
|
351,753 |
|
|
350,935 |
|
|
Weighted
average shares outstanding - diluted(1) |
|
|
353,844 |
|
|
353,965 |
|
|
|
353,797 |
|
|
353,248 |
|
|
352,791 |
|
|
352,621 |
|
|
|
353,853 |
|
|
352,683 |
|
|
Net
revenue(2) |
|
$ |
330,733 |
|
$ |
346,659 |
|
|
$ |
355,950 |
|
$ |
346,934 |
|
$ |
349,717 |
|
$ |
345,188 |
|
|
$ |
677,392 |
|
$ |
694,905 |
|
|
Noninterest
income as a percentage of net revenue(2) |
|
20.75 |
% |
|
22.81 |
% |
|
|
25.12 |
% |
|
24.05 |
% |
|
24.76 |
% |
|
23.83 |
% |
|
|
21.80 |
% |
|
24.30 |
% |
|
Pre-tax,
pre-provision income(3) |
|
$ |
72,980 |
|
$ |
91,307 |
|
|
$ |
90,955 |
|
$ |
101,501 |
|
$ |
101,818 |
|
$ |
84,150 |
|
|
$ |
164,287 |
|
$ |
185,968 |
|
|
Pre-tax,
pre-provision income per diluted share(3) |
|
$ |
0.21 |
|
$ |
0.26 |
|
|
$ |
0.26 |
|
$ |
0.29 |
|
$ |
0.29 |
|
$ |
0.24 |
|
|
$ |
0.46 |
|
$ |
0.53 |
|
|
Pre-tax,
pre-provision return on average assets(3) |
|
|
0.73 |
% |
|
0.92 |
% |
|
|
0.91 |
% |
|
1.03 |
% |
|
1.05 |
% |
|
0.88 |
% |
|
|
0.82 |
% |
|
0.97 |
% |
|
Net
interest margin(4) |
|
|
2.92 |
% |
|
3.00 |
% |
|
|
2.98 |
% |
|
2.98 |
% |
|
3.02 |
% |
|
3.07 |
% |
|
|
2.96 |
% |
|
3.04 |
% |
|
Interest
yield on average loans(4) |
|
|
3.72 |
% |
|
3.73 |
% |
|
|
3.65 |
% |
|
3.64 |
% |
|
3.73 |
% |
|
3.75 |
% |
|
|
3.73 |
% |
|
3.74 |
% |
|
Rate paid
on interest-bearing liabilities |
|
|
0.60 |
% |
|
0.56 |
% |
|
|
0.51 |
% |
|
0.50 |
% |
|
0.49 |
% |
|
0.48 |
% |
|
|
0.58 |
% |
|
0.49 |
% |
|
Efficiency
ratio |
|
|
77.9 |
% |
|
73.7 |
% |
|
|
74.4 |
% |
|
70.7 |
% |
|
70.9 |
% |
|
75.6 |
% |
|
|
75.7 |
% |
|
73.2 |
% |
|
Expenses as
a percentage of average loans and deposits |
|
1.9 |
% |
|
1.9 |
% |
|
|
2.0 |
% |
|
1.9 |
% |
|
1.9 |
% |
|
2.1 |
% |
|
|
1.9 |
% |
|
2.0 |
% |
|
Effective
tax rate |
|
|
24.0 |
% |
|
29.8 |
% |
|
|
25.4 |
% |
|
26.0 |
% |
|
24.7 |
% |
|
28.0 |
% |
|
|
27.10 |
% |
|
26.30 |
% |
|
Return on
average assets(5) |
|
|
0.46 |
% |
|
0.49 |
% |
|
|
0.51 |
% |
|
0.61 |
% |
|
0.63 |
% |
|
0.54 |
% |
|
|
0.48 |
% |
|
0.58 |
% |
|
Return on
average equity(5) |
|
|
4.47 |
% |
|
4.68 |
% |
|
|
4.85 |
% |
|
5.78 |
% |
|
5.90 |
% |
|
5.05 |
% |
|
|
4.57 |
% |
|
5.48 |
% |
|
Return on
average tangible equity(3)(5) |
|
|
6.70 |
% |
|
7.04 |
% |
|
|
7.32 |
% |
|
8.73 |
% |
|
8.94 |
% |
|
7.68 |
% |
|
|
6.87 |
% |
|
8.32 |
% |
|
Return on
average common equity |
|
|
4.07 |
% |
|
4.30 |
% |
|
|
4.50 |
% |
|
5.51 |
% |
|
5.63 |
% |
|
4.69 |
% |
|
|
4.18 |
% |
|
5.17 |
% |
|
Return on
average tangible common equity(3) |
|
|
6.39 |
% |
|
6.77 |
% |
|
|
7.10 |
% |
|
8.72 |
% |
|
8.94 |
% |
|
7.48 |
% |
|
|
6.58 |
% |
|
8.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Share count
excludes unvested restricted stock shares. |
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
Net revenue is comprised of net interest income and
noninterest income. |
|
|
(3 |
) |
The tables in this earnings release present the computation of
earnings and certain other ratios using non-GAAP financial
measures, which we believe provide investors with information that
is useful in understanding our financial performance and position.
See Appendix A for further detail. |
|
|
|
|
(4 |
) |
Yields and rates calculated on a tax equivalent basis. |
|
|
(5 |
) |
Return used to calculate ratio excludes preferred stock
dividend. |
|
First Niagara Financial Group, Inc. |
|
|
|
|
|
|
|
|
|
|
Period End
Balance Sheet |
|
|
|
|
|
|
|
|
|
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
June 30, |
March
31, |
|
December
31, |
September 30, |
June 30, |
March 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
420,884 |
|
$ |
382,539 |
|
|
$ |
672,243 |
|
$ |
420,289 |
|
$ |
527,323 |
|
$ |
387,676 |
|
|
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
Available
for sale |
|
|
5,518,025 |
|
|
5,439,220 |
|
|
|
5,471,291 |
|
|
5,725,608 |
|
|
5,750,860 |
|
|
5,911,419 |
|
|
|
|
Held to
maturity |
|
|
6,315,222 |
|
|
6,720,817 |
|
|
|
6,387,689 |
|
|
6,280,049 |
|
|
6,169,838 |
|
|
6,214,561 |
|
|
|
|
FHLB and
FRB common stock |
|
|
402,214 |
|
|
375,960 |
|
|
|
410,452 |
|
|
373,066 |
|
|
379,135 |
|
|
375,090 |
|
|
|
|
|
Total
investment securities |
|
|
12,235,461 |
|
|
12,535,997 |
|
|
|
12,269,432 |
|
|
12,378,723 |
|
|
12,299,833 |
|
|
12,501,070 |
|
|
|
Loans held
for sale |
|
|
51,731 |
|
|
26,592 |
|
|
|
46,096 |
|
|
51,056 |
|
|
59,816 |
|
|
48,755 |
|
|
|
Loans and
leases: |
|
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Real
estate |
|
|
8,730,148 |
|
|
8,625,965 |
|
|
|
8,652,255 |
|
|
8,365,808 |
|
|
8,312,332 |
|
|
8,287,108 |
|
|
|
|
|
Business |
|
|
6,132,536 |
|
|
6,174,753 |
|
|
|
6,013,217 |
|
|
6,031,358 |
|
|
5,923,524 |
|
|
5,790,980 |
|
|
|
|
|
|
Total commercial
loans |
|
|
14,862,684 |
|
|
14,800,718 |
|
|
|
14,665,472 |
|
|
14,397,166 |
|
|
14,235,856 |
|
|
14,078,088 |
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential
real estate |
|
|
3,358,205 |
|
|
3,330,533 |
|
|
|
3,354,639 |
|
|
3,345,701 |
|
|
3,329,799 |
|
|
3,330,216 |
|
|
|
|
|
Home
equity |
|
|
3,058,824 |
|
|
3,057,154 |
|
|
|
3,068,962 |
|
|
3,032,618 |
|
|
2,984,872 |
|
|
2,943,844 |
|
|
|
|
|
Indirect
auto |
|
|
2,537,259 |
|
|
2,464,318 |
|
|
|
2,393,105 |
|
|
2,330,826 |
|
|
2,256,004 |
|
|
2,200,913 |
|
|
|
|
|
Credit
cards |
|
|
287,139 |
|
|
288,747 |
|
|
|
310,813 |
|
|
305,779 |
|
|
304,682 |
|
|
301,228 |
|
|
|
|
|
Other
consumer |
|
|
229,084 |
|
|
236,911 |
|
|
|
244,935 |
|
|
254,109 |
|
|
257,204 |
|
|
263,985 |
|
|
|
|
|
|
Total consumer
loans |
|
|
9,470,511 |
|
|
9,377,663 |
|
|
|
9,372,454 |
|
|
9,269,033 |
|
|
9,132,561 |
|
|
9,040,186 |
|
|
|
|
|
Total loans
and leases |
|
|
24,333,195 |
|
|
24,178,381 |
|
|
|
24,037,926 |
|
|
23,666,199 |
|
|
23,368,417 |
|
|
23,118,274 |
|
|
|
|
Allowance
for loan losses |
|
|
252,843 |
|
|
252,800 |
|
|
|
242,036 |
|
|
238,700 |
|
|
235,600 |
|
|
231,138 |
|
|
|
|
|
|
Loans and leases,
net |
|
|
24,080,352 |
|
|
23,925,581 |
|
|
|
23,795,890 |
|
|
23,427,499 |
|
|
23,132,817 |
|
|
22,887,136 |
|
|
|
Bank owned
life insurance |
|
|
441,772 |
|
|
439,084 |
|
|
|
436,709 |
|
|
434,263 |
|
|
431,335 |
|
|
428,454 |
|
|
|
Goodwill
and other intangibles |
|
|
1,389,132 |
|
|
1,392,367 |
|
|
|
1,396,227 |
|
|
1,400,199 |
|
|
1,404,201 |
|
|
1,410,800 |
|
|
|
Other
assets |
|
|
1,372,049 |
|
|
1,370,275 |
|
|
|
1,301,789 |
|
|
1,301,152 |
|
|
1,208,218 |
|
|
1,243,588 |
|
|
|
Total
assets |
|
$ |
39,991,381 |
|
$ |
40,072,435 |
|
|
$ |
39,918,386 |
|
$ |
39,413,181 |
|
$ |
39,063,543 |
|
$ |
38,907,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts |
|
$ |
3,448,312 |
|
$ |
3,428,924 |
|
|
$ |
3,389,728 |
|
$ |
3,359,320 |
|
$ |
3,483,777 |
|
$ |
3,488,441 |
|
|
|
|
Interest-bearing checking |
|
|
5,364,128 |
|
|
5,553,928 |
|
|
|
5,478,947 |
|
|
5,285,987 |
|
|
5,088,856 |
|
|
5,158,264 |
|
|
|
|
Money
market deposits |
|
|
10,398,719 |
|
|
10,884,350 |
|
|
|
10,653,792 |
|
|
10,483,721 |
|
|
10,303,873 |
|
|
10,368,358 |
|
|
|
|
Noninterest-bearing deposits |
|
|
5,800,565 |
|
|
5,739,509 |
|
|
|
5,834,534 |
|
|
5,813,571 |
|
|
5,549,944 |
|
|
5,500,484 |
|
|
|
|
Certificates of deposit |
|
|
3,947,762 |
|
|
3,954,033 |
|
|
|
3,343,878 |
|
|
3,873,521 |
|
|
4,020,367 |
|
|
3,734,226 |
|
|
|
|
|
|
Total deposits |
|
|
28,959,486 |
|
|
29,560,744 |
|
|
|
28,700,879 |
|
|
28,816,120 |
|
|
28,446,817 |
|
|
28,249,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
|
4,631,269 |
|
|
3,255,890 |
|
|
|
4,348,586 |
|
|
4,086,415 |
|
|
4,275,886 |
|
|
4,739,264 |
|
|
|
Long-term
borrowings |
|
|
1,732,919 |
|
|
2,608,014 |
|
|
|
2,308,101 |
|
|
1,783,402 |
|
|
1,683,476 |
|
|
1,233,550 |
|
|
|
Other
liabilities |
|
|
467,915 |
|
|
498,084 |
|
|
|
434,492 |
|
|
587,867 |
|
|
536,239 |
|
|
559,646 |
|
|
|
|
Total
liabilities |
|
|
35,791,589 |
|
|
35,922,732 |
|
|
|
35,792,058 |
|
|
35,273,804 |
|
|
34,942,418 |
|
|
34,782,233 |
|
|
|
Preferred
stockholders' equity |
|
|
338,002 |
|
|
338,002 |
|
|
|
338,002 |
|
|
338,002 |
|
|
338,002 |
|
|
338,002 |
|
|
|
Common
stockholders' equity |
|
|
3,861,790 |
|
|
3,811,701 |
|
|
|
3,788,326 |
|
|
3,801,375 |
|
|
3,783,123 |
|
|
3,787,244 |
|
|
|
|
Total
stockholders' equity |
|
|
4,199,792 |
|
|
4,149,703 |
|
|
|
4,126,328 |
|
|
4,139,377 |
|
|
4,121,125 |
|
|
4,125,246 |
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
39,991,381 |
|
$ |
40,072,435 |
|
|
$ |
39,918,386 |
|
$ |
39,413,181 |
|
$ |
39,063,543 |
|
$ |
38,907,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected balance sheet information: |
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets(1) |
|
$ |
36,627,110 |
|
$ |
36,789,339 |
|
|
$ |
36,677,134 |
|
$ |
36,099,580 |
|
$ |
35,813,498 |
|
$ |
35,594,208 |
|
|
|
Total
interest-bearing liabilities |
|
|
29,523,109 |
|
|
29,685,139 |
|
|
|
29,523,032 |
|
|
28,872,365 |
|
|
28,856,235 |
|
|
28,722,103 |
|
|
|
Net
interest-earning assets |
|
$ |
7,104,001 |
|
$ |
7,104,200 |
|
|
$ |
7,154,102 |
|
$ |
7,227,215 |
|
$ |
6,957,263 |
|
$ |
6,872,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity(1)(2) |
|
$ |
2,472,658 |
|
$ |
2,419,334 |
|
|
$ |
2,392,099 |
|
$ |
2,401,176 |
|
$ |
2,378,922 |
|
$ |
2,376,444 |
|
|
|
Unrealized
gain (loss) on available for sale securities, net of
tax(3) |
|
37,380 |
|
|
1,246 |
|
|
|
(9,577 |
) |
|
29,877 |
|
|
37,464 |
|
|
68,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core
deposits |
|
$ |
25,011,724 |
|
$ |
25,606,711 |
|
|
$ |
25,357,001 |
|
$ |
24,942,599 |
|
$ |
24,426,450 |
|
$ |
24,515,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans(4) |
|
$ |
21,678,047 |
|
$ |
21,361,753 |
|
|
$ |
21,101,040 |
|
$ |
20,591,532 |
|
$ |
19,929,719 |
|
$ |
19,528,609 |
|
|
|
Acquired
loans(5) |
|
|
2,709,039 |
|
|
2,873,372 |
|
|
|
2,998,530 |
|
|
3,138,568 |
|
|
3,517,525 |
|
|
3,681,354 |
|
|
|
Credit
related discount on acquired loans(6) |
|
|
(53,891 |
) |
|
(56,744 |
) |
|
|
(61,644 |
) |
|
(63,901 |
) |
|
(78,827 |
) |
|
(91,689 |
) |
|
|
|
Total
Loans |
|
$ |
24,333,195 |
|
$ |
24,178,381 |
|
|
$ |
24,037,926 |
|
$ |
23,666,199 |
|
$ |
23,368,417 |
|
$ |
23,118,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Includes interest bearing cash and cash equivalents,
investment securities at amortized cost, loans held for sale, and
total loans and leases. |
|
|
(2 |
) |
The tables in this earnings release present the computation of
earnings and certain other ratios using non-GAAP financial
measures, which we believe provide investors with information that
is useful in understanding our financial performance and position.
See Appendix A for further detail. |
|
|
(3 |
) |
Excludes unamortized unrealized gains recorded in accumulated
other comprehensive income related to available for sale securities
transferred to held to maturity. |
|
|
(4 |
) |
Originated
loans represent total loans excluding acquired loans. |
|
|
|
|
|
|
(5 |
) |
Carrying
value of acquired loans plus the principal not expected to be
collected. |
|
|
|
|
|
(6 |
) |
Principal
on acquired loans not expected to be collected. |
|
|
|
|
|
|
|
|
First Niagara Financial Group, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balance Sheet and Related Tax Equivalent Yields &
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
Six months ended |
|
|
|
|
June 30, 2016 |
March 31, 2016 |
June 30, 2015 |
|
June 30, 2016 |
June 30, 2015 |
|
|
|
|
Average |
Interest(1) |
Yields |
Average |
Interest(1) |
Yields |
Average |
Interest(1) |
Yields |
|
Average |
Interest(1) |
Yields |
Average |
Interest(1) |
Yields |
|
|
|
|
Balances
|
|
and
Rates(1) |
Balances
|
|
and
Rates(1) |
Balances
|
|
and
Rates(1) |
|
Balances
|
|
and
Rates(1) |
Balances
|
|
and
Rates(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
$ |
8,664 |
|
$ |
80 |
|
|
3.63 |
% |
$ |
8,625 |
|
$ |
79 |
|
|
3.61 |
% |
$ |
8,257 |
|
$ |
75 |
|
|
3.61 |
% |
|
$ |
8,644 |
|
$ |
158 |
|
|
3.62 |
% |
$ |
8,260 |
|
$ |
150 |
|
|
3.60 |
% |
|
Business |
|
|
6,112 |
|
|
53 |
|
|
3.43 |
|
|
6,062 |
|
|
52 |
|
|
3.42 |
|
|
5,830 |
|
|
52 |
|
|
3.48 |
|
|
|
6,088 |
|
|
106 |
|
|
3.43 |
|
|
5,813 |
|
|
101 |
|
|
3.46 |
|
|
Total commercial loans |
|
|
14,776 |
|
|
133 |
|
|
3.55 |
|
|
14,687 |
|
|
131 |
|
|
3.53 |
|
|
14,087 |
|
|
127 |
|
|
3.56 |
|
|
|
14,732 |
|
|
264 |
|
|
3.54 |
|
|
14,073 |
|
|
251 |
|
|
3.54 |
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate |
|
|
3,338 |
|
|
30 |
|
|
3.57 |
|
|
3,346 |
|
|
31 |
|
|
3.65 |
|
|
3,326 |
|
|
31 |
|
|
3.68 |
|
|
|
3,342 |
|
|
60 |
|
|
3.61 |
|
|
3,332 |
|
|
62 |
|
|
3.73 |
|
|
Home equity |
|
|
3,055 |
|
|
30 |
|
|
3.95 |
|
|
3,066 |
|
|
30 |
|
|
3.93 |
|
|
2,963 |
|
|
28 |
|
|
3.86 |
|
|
|
3,060 |
|
|
60 |
|
|
3.94 |
|
|
2,951 |
|
|
57 |
|
|
3.89 |
|
|
Indirect auto |
|
|
2,500 |
|
|
18 |
|
|
2.93 |
|
|
2,420 |
|
|
18 |
|
|
2.91 |
|
|
2,238 |
|
|
15 |
|
|
2.74 |
|
|
|
2,460 |
|
|
36 |
|
|
2.92 |
|
|
2,213 |
|
|
30 |
|
|
2.77 |
|
|
Credit cards |
|
|
288 |
|
|
8 |
|
|
11.52 |
|
|
297 |
|
|
9 |
|
|
11.80 |
|
|
304 |
|
|
9 |
|
|
11.40 |
|
|
|
293 |
|
|
17 |
|
|
11.66 |
|
|
307 |
|
|
18 |
|
|
11.57 |
|
|
Other consumer |
|
|
233 |
|
|
5 |
|
|
8.64 |
|
|
242 |
|
|
4 |
|
|
8.57 |
|
|
260 |
|
|
5 |
|
|
8.49 |
|
|
|
237 |
|
|
10 |
|
|
8.61 |
|
|
267 |
|
|
11 |
|
|
8.49 |
|
|
Total consumer loans |
|
|
9,414 |
|
|
91 |
|
|
3.90 |
|
|
9,371 |
|
|
92 |
|
|
3.94 |
|
|
9,091 |
|
|
88 |
|
|
3.91 |
|
|
|
9,392 |
|
|
183 |
|
|
3.92 |
|
|
9,070 |
|
|
178 |
|
|
3.96 |
|
|
|
Total loans and
leases |
|
|
24,190 |
|
|
224 |
|
|
3.72 |
|
|
24,058 |
|
|
223 |
|
|
3.73 |
|
|
23,178 |
|
|
215 |
|
|
3.73 |
|
|
|
24,124 |
|
|
447 |
|
|
3.73 |
|
|
23,143 |
|
|
429 |
|
|
3.74 |
|
|
Residential MBS |
|
|
8,361 |
|
|
48 |
|
|
2.32 |
|
|
7,864 |
|
|
48 |
|
|
2.43 |
|
|
7,381 |
|
|
43 |
|
|
2.30 |
|
|
|
8,112 |
|
|
96 |
|
|
2.37 |
|
|
7,281 |
|
|
87 |
|
|
2.39 |
|
|
Commercial MBS |
|
|
870 |
|
|
11 |
|
|
5.11 |
|
|
997 |
|
|
12 |
|
|
4.68 |
|
|
1,311 |
|
|
11 |
|
|
3.42 |
|
|
|
933 |
|
|
23 |
|
|
4.88 |
|
|
1,357 |
|
|
23 |
|
|
3.34 |
|
|
Other investment securities (3) |
|
|
3,328 |
|
|
27 |
|
|
3.28 |
|
|
3,513 |
|
|
30 |
|
|
3.53 |
|
|
3,604 |
|
|
34 |
|
|
3.75 |
|
|
|
3,421 |
|
|
58 |
|
|
3.41 |
|
|
3,580 |
|
|
65 |
|
|
3.63 |
|
|
|
Total securities, at
amortized cost |
|
|
12,559 |
|
|
86 |
|
|
2.77 |
|
|
12,374 |
|
|
90 |
|
|
2.92 |
|
|
12,296 |
|
|
88 |
|
|
2.85 |
|
|
|
12,466 |
|
|
177 |
|
|
2.85 |
|
|
12,218 |
|
|
175 |
|
|
2.86 |
|
|
Money market and other investments |
|
|
90 |
|
|
1 |
|
|
2.58 |
|
|
205 |
|
|
1 |
|
|
1.37 |
|
|
100 |
|
|
- |
|
|
1.56 |
|
|
|
148 |
|
|
1 |
|
|
1.74 |
|
|
129 |
|
|
1 |
|
|
1.22 |
|
|
Total interest-earning assets |
|
|
36,839 |
|
$ |
311 |
|
|
3.40 |
% |
|
36,637 |
|
$ |
314 |
|
|
3.45 |
% |
|
35,574 |
|
$ |
303 |
|
|
3.42 |
% |
|
|
36,738 |
|
$ |
625 |
|
|
3.42 |
% |
|
35,490 |
|
$ |
605 |
|
|
3.44 |
% |
|
Goodwill and other intangibles |
|
|
1,391 |
|
|
|
|
1,394 |
|
|
|
|
1,408 |
|
|
|
|
|
1,392 |
|
|
|
|
1,411 |
|
|
|
|
Other noninterest-earning assets |
|
|
2,019 |
|
|
|
|
1,929 |
|
|
|
|
1,931 |
|
|
|
|
|
1,974 |
|
|
|
|
1,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
40,249 |
|
|
|
$ |
39,960 |
|
|
|
$ |
38,913 |
|
|
|
|
$ |
40,104 |
|
|
|
$ |
38,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
$ |
3,448 |
|
$ |
1 |
|
|
0.10 |
% |
$ |
3,371 |
|
$ |
1 |
|
|
0.09 |
% |
$ |
3,494 |
|
$ |
1 |
|
|
0.09 |
% |
|
$ |
3,410 |
|
$ |
2 |
|
|
0.10 |
% |
$ |
3,463 |
|
$ |
1 |
|
|
0.09 |
% |
|
Interest-bearing checking |
|
|
5,455 |
|
|
- |
|
|
0.03 |
|
|
5,362 |
|
|
- |
|
|
0.03 |
|
|
5,131 |
|
|
- |
|
|
0.03 |
|
|
|
5,408 |
|
|
1 |
|
|
0.03 |
|
|
5,067 |
|
|
1 |
|
|
0.03 |
|
|
Money market deposits |
|
|
10,632 |
|
|
9 |
|
|
0.33 |
|
|
10,725 |
|
|
9 |
|
|
0.32 |
|
|
10,251 |
|
|
8 |
|
|
0.29 |
|
|
|
10,678 |
|
|
17 |
|
|
0.32 |
|
|
10,192 |
|
|
14 |
|
|
0.27 |
|
|
Certificates of deposit |
|
|
3,948 |
|
|
10 |
|
|
1.02 |
|
|
3,726 |
|
|
9 |
|
|
0.97 |
|
|
3,917 |
|
|
8 |
|
|
0.82 |
|
|
|
3,837 |
|
|
19 |
|
|
0.99 |
|
|
3,848 |
|
|
16 |
|
|
0.83 |
|
|
Total interest bearing
deposits |
|
|
23,483 |
|
|
20 |
|
|
0.34 |
% |
|
23,184 |
|
|
19 |
|
|
0.32 |
% |
|
22,793 |
|
|
17 |
|
|
0.29 |
% |
|
|
23,333 |
|
|
39 |
|
|
0.33 |
% |
|
22,570 |
|
|
32 |
|
|
0.29 |
% |
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
3,984 |
|
|
8 |
|
|
0.81 |
% |
|
3,815 |
|
|
7 |
|
|
0.72 |
% |
|
4,522 |
|
|
5 |
|
|
0.48 |
% |
|
|
3,900 |
|
|
15 |
|
|
0.76 |
% |
|
4,821 |
|
|
11 |
|
|
0.47 |
% |
|
Long-term borrowings |
|
|
2,209 |
|
|
16 |
|
|
2.93 |
|
|
2,416 |
|
|
15 |
|
|
2.62 |
|
|
1,359 |
|
|
13 |
|
|
3.90 |
|
|
|
2,312 |
|
|
31 |
|
|
2.77 |
|
|
1,194 |
|
|
26 |
|
|
4.36 |
|
|
Total
borrowings |
|
|
6,193 |
|
|
24 |
|
|
1.56 |
|
|
6,231 |
|
|
22 |
|
|
1.46 |
|
|
5,881 |
|
|
18 |
|
|
1.27 |
|
|
|
6,212 |
|
|
46 |
|
|
1.51 |
|
|
6,015 |
|
|
37 |
|
|
1.24 |
|
|
Total interest-bearing liabilities |
|
|
29,676 |
|
$ |
44 |
|
|
0.60 |
% |
|
29,415 |
|
$ |
41 |
|
|
0.56 |
% |
|
28,674 |
|
$ |
35 |
|
|
0.49 |
% |
|
|
29,545 |
|
$ |
85 |
|
|
0.58 |
% |
|
28,585 |
|
$ |
69 |
|
|
0.49 |
% |
|
Noninterest-bearing deposits |
|
|
5,705 |
|
|
|
|
5,666 |
|
|
|
|
5,427 |
|
|
|
|
|
5,686 |
|
|
|
|
5,428 |
|
|
|
|
Other noninterest-bearing liabilities |
|
|
691 |
|
|
|
|
725 |
|
|
|
|
667 |
|
|
|
|
|
707 |
|
|
|
|
660 |
|
|
|
|
Total liabilities |
|
|
36,072 |
|
|
|
|
35,806 |
|
|
|
|
34,768 |
|
|
|
|
|
35,938 |
|
|
|
|
34,673 |
|
|
|
|
Total stockholders' equity |
|
|
4,177 |
|
|
|
|
4,154 |
|
|
|
|
4,145 |
|
|
|
|
|
4,166 |
|
|
|
|
4,137 |
|
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
40,249 |
|
|
|
$ |
39,960 |
|
|
|
$ |
38,913 |
|
|
|
|
$ |
40,104 |
|
|
|
$ |
38,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (FTE) |
|
|
$ |
267 |
|
|
|
$ |
273 |
|
|
|
$ |
268 |
|
|
|
|
$ |
540 |
|
|
|
$ |
536 |
|
|
|
Taxable Equivalent Adjustment(1) |
|
|
|
5 |
|
|
|
|
5 |
|
|
|
|
5 |
|
|
|
|
|
10 |
|
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
core deposits |
|
$ |
25,240 |
|
$ |
10 |
|
|
0.16 |
% |
$ |
25,124 |
|
$ |
10 |
|
|
0.15 |
% |
$ |
24,303 |
|
$ |
9 |
|
|
0.14 |
% |
|
$ |
25,182 |
|
$ |
20 |
|
|
0.16 |
% |
$ |
24,150 |
|
$ |
16 |
|
|
0.13 |
% |
|
Total
transactional deposits |
|
|
11,160 |
|
|
- |
|
|
0.02 |
% |
|
11,028 |
|
|
- |
|
|
0.02 |
% |
|
10,558 |
|
|
- |
|
|
0.01 |
% |
|
|
11,094 |
|
|
1 |
|
|
0.02 |
% |
|
10,495 |
|
|
1 |
|
|
0.01 |
% |
|
Total
deposits |
|
|
29,188 |
|
|
20 |
|
|
0.28 |
% |
|
28,850 |
|
|
19 |
|
|
0.26 |
% |
|
28,220 |
|
|
17 |
|
|
0.24 |
% |
|
|
29,019 |
|
|
39 |
|
|
0.27 |
% |
|
27,998 |
|
|
32 |
|
|
0.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent net interest rate spread |
|
|
|
|
2.80 |
% |
|
|
|
2.89 |
% |
|
|
|
2.93 |
% |
|
|
|
|
2.84 |
% |
|
|
|
2.95 |
% |
|
Tax equivalent net interest rate margin |
|
|
|
|
2.92 |
% |
|
|
|
3.00 |
% |
|
|
|
3.02 |
% |
|
|
|
|
2.96 |
% |
|
|
|
3.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Tax
equivalent interest income is calculated using a 35% tax
rate. |
|
|
(2 |
) |
Includes
nonaccrual loans. |
|
|
(3 |
) |
Includes debt
securities, collateralized loan obligations, asset-backed
securities, FHLB and FRB common stock, and other investment
securities. |
|
First Niagara Financial Group, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for Loans and Lease Losses & Asset Quality |
|
|
|
|
|
|
|
|
|
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Six months
ended |
|
|
|
|
|
|
|
Second |
First |
|
Fourth |
Third |
Second |
First |
|
June 30, |
June 30, |
|
|
|
|
|
|
|
Quarter |
Quarter |
|
Quarter |
Quarter |
Quarter |
Quarter |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance |
|
$ |
252,800 |
|
$ |
242,036 |
|
|
$ |
238,700 |
|
$ |
235,600 |
|
$ |
231,138 |
|
$ |
234,251 |
|
|
$ |
242,036 |
|
$ |
234,251 |
|
|
Net loan
(charge-offs) recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate |
|
$ |
1,612 |
|
$ |
(254 |
) |
|
$ |
(1,476 |
) |
$ |
(2,686 |
) |
$ |
(5,525 |
) |
$ |
(5,825 |
) |
|
$ |
1,358 |
|
$ |
(11,350 |
) |
|
|
Commercial
business |
|
|
(5,620 |
) |
|
(3,903 |
) |
|
|
(10,441 |
) |
|
(6,286 |
) |
|
(3,513 |
) |
|
(4,178 |
) |
|
|
(9,523 |
) |
|
(7,691 |
) |
|
|
Residential
real estate |
|
|
(287 |
) |
|
(135 |
) |
|
|
(94 |
) |
|
(230 |
) |
|
(197 |
) |
|
(266 |
) |
|
|
(422 |
) |
|
(463 |
) |
|
|
Home
equity |
|
|
(1,484 |
) |
|
(995 |
) |
|
|
(723 |
) |
|
(1,056 |
) |
|
(1,367 |
) |
|
(1,526 |
) |
|
|
(2,479 |
) |
|
(2,893 |
) |
|
|
Indirect
auto |
|
|
(2,043 |
) |
|
(2,030 |
) |
|
|
(2,122 |
) |
|
(1,743 |
) |
|
(1,342 |
) |
|
(1,226 |
) |
|
|
(4,073 |
) |
|
(2,568 |
) |
|
|
Credit
cards |
|
|
(2,439 |
) |
|
(2,654 |
) |
|
|
(2,450 |
) |
|
(2,215 |
) |
|
(2,522 |
) |
|
(2,450 |
) |
|
|
(5,093 |
) |
|
(4,972 |
) |
|
|
Other
consumer |
|
|
(2,064 |
) |
|
(1,784 |
) |
|
|
(1,758 |
) |
|
(1,952 |
) |
|
(1,528 |
) |
|
(1,807 |
) |
|
|
(3,848 |
) |
|
(3,335 |
) |
|
|
|
|
|
Total net loan
charge-offs |
|
$ |
(12,325 |
) |
$ |
(11,755 |
) |
|
$ |
(19,064 |
) |
$ |
(16,168 |
) |
$ |
(15,994 |
) |
$ |
(17,278 |
) |
|
$ |
(24,080 |
) |
$ |
(33,272 |
) |
|
Provision
for loan losses |
|
|
12,368 |
|
|
22,519 |
|
|
|
22,400 |
|
|
19,268 |
|
|
20,456 |
|
|
14,165 |
|
|
|
34,887 |
|
|
34,621 |
|
|
|
|
Ending
balance |
|
$ |
252,843 |
|
$ |
252,800 |
|
|
$ |
242,036 |
|
$ |
238,700 |
|
$ |
235,600 |
|
$ |
231,138 |
|
|
$ |
252,843 |
|
$ |
235,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
to loans |
|
|
1.04 |
% |
|
1.05 |
% |
|
|
1.01 |
% |
|
1.01 |
% |
|
1.01 |
% |
|
1.00 |
% |
|
|
1.04 |
% |
|
1.01 |
% |
|
Allowance
for originated loans to originated loans(1) |
|
|
1.14 |
% |
|
1.16 |
% |
|
|
1.12 |
% |
|
1.13 |
% |
|
1.15 |
% |
|
1.15 |
% |
|
|
1.14 |
% |
|
1.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs (recoveries) to average loans (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate |
|
|
(0.07 |
)% |
|
0.01 |
% |
|
|
0.07 |
% |
|
0.13 |
% |
|
0.27 |
% |
|
0.29 |
% |
|
|
(0.03 |
)% |
|
0.27 |
% |
|
|
Commercial
business |
|
|
0.37 |
% |
|
0.26 |
% |
|
|
0.70 |
% |
|
0.42 |
% |
|
0.24 |
% |
|
0.29 |
% |
|
|
0.31 |
% |
|
0.26 |
% |
|
|
|
Total
commercial loans |
|
|
0.11 |
% |
|
0.11 |
% |
|
|
0.33 |
% |
|
0.25 |
% |
|
0.26 |
% |
|
0.28 |
% |
|
|
0.11 |
% |
|
0.27 |
% |
|
|
Residential
real estate |
|
|
0.03 |
% |
|
0.02 |
% |
|
|
0.01 |
% |
|
0.03 |
% |
|
0.02 |
% |
|
0.03 |
% |
|
|
0.03 |
% |
|
0.03 |
% |
|
|
Home
equity |
|
|
0.19 |
% |
|
0.13 |
% |
|
|
0.09 |
% |
|
0.14 |
% |
|
0.18 |
% |
|
0.21 |
% |
|
|
0.16 |
% |
|
0.20 |
% |
|
|
Indirect
auto |
|
|
0.33 |
% |
|
0.34 |
% |
|
|
0.36 |
% |
|
0.30 |
% |
|
0.24 |
% |
|
0.22 |
% |
|
|
0.33 |
% |
|
0.23 |
% |
|
|
Credit
cards |
|
|
3.39 |
% |
|
3.57 |
% |
|
|
3.21 |
% |
|
2.90 |
% |
|
3.32 |
% |
|
3.16 |
% |
|
|
3.48 |
% |
|
3.24 |
% |
|
|
Other
consumer |
|
|
3.55 |
% |
|
2.95 |
% |
|
|
2.81 |
% |
|
3.06 |
% |
|
2.35 |
% |
|
2.63 |
% |
|
|
3.25 |
% |
|
2.49 |
% |
|
|
|
Total
consumer loans |
|
|
0.36 |
% |
|
0.33 |
% |
|
|
0.31 |
% |
|
0.32 |
% |
|
0.31 |
% |
|
0.33 |
% |
|
|
0.34 |
% |
|
0.31 |
% |
|
|
Total
loans |
|
|
0.20 |
% |
|
0.20 |
% |
|
|
0.32 |
% |
|
0.28 |
% |
|
0.28 |
% |
|
0.30 |
% |
|
|
0.20 |
% |
|
0.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs (recoveries) of originated loans to average originated
loans (annualized)(1) |
|
|
|
|
|
|
|
|
|
|
Commercial
real estate |
|
|
0.03 |
% |
|
0.00 |
% |
|
|
0.08 |
% |
|
0.14 |
% |
|
0.31 |
% |
|
0.24 |
% |
|
|
0.01 |
% |
|
0.28 |
% |
|
|
Commercial
business |
|
|
0.38 |
% |
|
0.26 |
% |
|
|
0.72 |
% |
|
0.44 |
% |
|
0.25 |
% |
|
0.31 |
% |
|
|
0.32 |
% |
|
0.28 |
% |
|
|
|
Total
commercial loans |
|
|
0.18 |
% |
|
0.11 |
% |
|
|
0.36 |
% |
|
0.27 |
% |
|
0.28 |
% |
|
0.27 |
% |
|
|
0.15 |
% |
|
0.28 |
% |
|
|
Residential
real estate |
|
|
0.05 |
% |
|
0.02 |
% |
|
|
0.02 |
% |
|
0.04 |
% |
|
0.04 |
% |
|
0.05 |
% |
|
|
0.04 |
% |
|
0.04 |
% |
|
|
Home
equity |
|
|
0.23 |
% |
|
0.16 |
% |
|
|
0.14 |
% |
|
0.14 |
% |
|
0.17 |
% |
|
0.16 |
% |
|
|
0.20 |
% |
|
0.16 |
% |
|
|
Indirect
auto |
|
|
0.33 |
% |
|
0.34 |
% |
|
|
0.36 |
% |
|
0.30 |
% |
|
0.24 |
% |
|
0.22 |
% |
|
|
0.33 |
% |
|
0.23 |
% |
|
|
Credit
cards |
|
|
3.39 |
% |
|
3.57 |
% |
|
|
3.21 |
% |
|
2.90 |
% |
|
3.32 |
% |
|
3.16 |
% |
|
|
3.48 |
% |
|
3.24 |
% |
|
|
Other
consumer |
|
|
3.55 |
% |
|
2.95 |
% |
|
|
2.81 |
% |
|
3.06 |
% |
|
2.35 |
% |
|
2.63 |
% |
|
|
3.25 |
% |
|
2.49 |
% |
|
|
|
Total
consumer loans |
|
|
0.42 |
% |
|
0.40 |
% |
|
|
0.39 |
% |
|
0.38 |
% |
|
0.37 |
% |
|
0.38 |
% |
|
|
0.41 |
% |
|
0.38 |
% |
|
|
Total
loans |
|
|
0.27 |
% |
|
0.22 |
% |
|
|
0.37 |
% |
|
0.31 |
% |
|
0.31 |
% |
|
0.31 |
% |
|
|
0.24 |
% |
|
0.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate |
|
$ |
47,464 |
|
$ |
37,087 |
|
|
$ |
44,438 |
|
$ |
54,699 |
|
$ |
60,021 |
|
$ |
65,655 |
|
|
$ |
47,464 |
|
$ |
60,021 |
|
|
|
Commercial
business |
|
|
64,681 |
|
|
71,999 |
|
|
|
56,382 |
|
|
45,389 |
|
|
42,979 |
|
|
54,506 |
|
|
|
64,681 |
|
|
42,979 |
|
|
|
Residential
real estate |
|
|
28,122 |
|
|
30,234 |
|
|
|
31,513 |
|
|
32,455 |
|
|
32,877 |
|
|
32,791 |
|
|
|
28,122 |
|
|
32,877 |
|
|
|
Home
equity |
|
|
35,323 |
|
|
35,701 |
|
|
|
35,561 |
|
|
34,191 |
|
|
27,092 |
|
|
26,163 |
|
|
|
35,323 |
|
|
27,092 |
|
|
|
Indirect
auto |
|
|
17,582 |
|
|
16,536 |
|
|
|
15,131 |
|
|
13,795 |
|
|
13,066 |
|
|
13,399 |
|
|
|
17,582 |
|
|
13,066 |
|
|
|
Other
consumer |
|
|
5,111 |
|
|
5,093 |
|
|
|
5,201 |
|
|
5,047 |
|
|
4,917 |
|
|
5,065 |
|
|
|
5,111 |
|
|
4,917 |
|
|
|
|
Total
originated nonperforming loans |
|
|
198,283 |
|
|
196,650 |
|
|
|
188,226 |
|
|
185,576 |
|
|
180,952 |
|
|
197,579 |
|
|
|
198,283 |
|
|
180,952 |
|
|
|
|
Total
acquired nonperforming loans(2) |
|
|
24,672 |
|
|
24,874 |
|
|
|
25,335 |
|
|
25,365 |
|
|
26,553 |
|
|
30,236 |
|
|
|
24,672 |
|
|
26,553 |
|
|
|
|
|
Total
nonperforming loans |
|
|
222,955 |
|
|
221,524 |
|
|
|
213,561 |
|
|
210,941 |
|
|
207,505 |
|
|
227,815 |
|
|
|
222,955 |
|
|
207,505 |
|
|
|
Real estate
owned |
|
|
18,735 |
|
|
16,457 |
|
|
|
16,063 |
|
|
18,359 |
|
|
17,397 |
|
|
19,128 |
|
|
|
18,735 |
|
|
17,397 |
|
|
|
|
Total
nonperforming assets(3) |
|
$ |
241,690 |
|
$ |
237,981 |
|
|
$ |
229,624 |
|
$ |
229,300 |
|
$ |
224,902 |
|
$ |
246,943 |
|
|
$ |
241,690 |
|
$ |
224,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing
troubled debt restructurings (TDR) |
|
$ |
72,175 |
|
$ |
63,659 |
|
|
$ |
62,630 |
|
$ |
60,941 |
|
$ |
64,643 |
|
$ |
64,401 |
|
|
$ |
72,175 |
|
$ |
64,643 |
|
|
Loans 90
days past due still accruing(4) |
|
|
52,136 |
|
|
57,259 |
|
|
|
67,718 |
|
|
69,879 |
|
|
78,279 |
|
|
87,213 |
|
|
|
52,136 |
|
|
78,279 |
|
|
Total
classified loans(5) |
|
|
635,807 |
|
|
601,539 |
|
|
|
602,912 |
|
|
591,771 |
|
|
592,148 |
|
|
615,518 |
|
|
|
635,807 |
|
|
592,148 |
|
|
Total
criticized loans(6) |
|
$ |
958,231 |
|
$ |
954,480 |
|
|
$ |
944,779 |
|
$ |
858,243 |
|
$ |
938,951 |
|
$ |
990,656 |
|
|
$ |
958,231 |
|
$ |
938,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
nonperforming loans to loans |
|
|
0.92 |
% |
|
0.92 |
% |
|
|
0.89 |
% |
|
0.89 |
% |
|
0.89 |
% |
|
0.99 |
% |
|
|
0.92 |
% |
|
0.89 |
% |
|
Total
nonperforming originated loans to originated
loans(1) |
|
0.91 |
% |
|
0.92 |
% |
|
|
0.89 |
% |
|
0.90 |
% |
|
0.91 |
% |
|
1.01 |
% |
|
|
0.91 |
% |
|
0.91 |
% |
|
Total
nonperforming assets to loans and real estate owned |
|
0.99 |
% |
|
0.98 |
% |
|
|
0.95 |
% |
|
0.97 |
% |
|
0.96 |
% |
|
1.07 |
% |
|
|
0.99 |
% |
|
0.96 |
% |
|
Total
nonperforming assets to assets |
|
|
0.60 |
% |
|
0.59 |
% |
|
|
0.58 |
% |
|
0.58 |
% |
|
0.58 |
% |
|
0.63 |
% |
|
|
0.60 |
% |
|
0.58 |
% |
|
Allowance
to nonperforming loans |
|
|
113.4 |
% |
|
114.1 |
% |
|
|
113.3 |
% |
|
113.2 |
% |
|
113.5 |
% |
|
101.5 |
% |
|
|
113.4 |
% |
|
113.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated
loans(1) |
|
$ |
21,678,047 |
|
$ |
21,361,753 |
|
|
$ |
21,101,040 |
|
$ |
20,591,532 |
|
$ |
19,929,719 |
|
$ |
19,528,609 |
|
|
$ |
21,678,047 |
|
$ |
19,929,719 |
|
|
Acquired
loans(7) |
|
|
2,709,039 |
|
|
2,873,372 |
|
|
|
2,998,530 |
|
|
3,138,568 |
|
|
3,517,525 |
|
|
3,681,354 |
|
|
|
2,709,039 |
|
|
3,517,525 |
|
|
Credit
related discount on acquired loans(8) |
|
|
(53,891 |
) |
|
(56,744 |
) |
|
|
(61,644 |
) |
|
(63,901 |
) |
|
(78,827 |
) |
|
(91,689 |
) |
|
|
(53,891 |
) |
|
(78,827 |
) |
|
|
Total
Loans |
|
$ |
24,333,195 |
|
$ |
24,178,381 |
|
|
$ |
24,037,926 |
|
$ |
23,666,199 |
|
$ |
23,368,417 |
|
$ |
23,118,274 |
|
|
$ |
24,333,195 |
|
$ |
23,368,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Originated
loans represent total loans excluding acquired loans. |
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
Nonperforming acquired loans include certain lines of credit
that are considered nonaccruing. |
|
|
|
|
(3 |
) |
Does not include a $5.5 million nonperforming loan that was
classified as held for sale at March 31, 2015, which was sold and
for which we received the proceeds on April 2, 2015. |
|
|
|
|
(4 |
) |
Includes acquired loans that were originally recorded at fair
value upon acquisition, credit card loans, and loans that have
matured which are in the process of collection. |
|
|
|
|
(5 |
) |
Includes consumer loans, which are considered classified when
they are 90 days or more past due. Classified loans include
substandard, doubtful, and loss, which are consistent with
regulatory definitions, and as described in Item 1, "Business",
under the heading "Asset Quality Review" in our Annual Report on
10-K for the year ended December 31, 2015. |
|
|
|
|
(6 |
) |
Criticized loans includes consumer loans when they are 90 days
or more past due. Criticized loans include special mention,
substandard, doubtful, and loss. |
|
|
|
|
(7 |
) |
Represents
the carrying value of acquired loans plus the principal not
expected to be collected. |
|
|
|
|
|
|
|
|
(8 |
) |
Represent
principal on acquired loans not expected to be
collected. |
|
|
|
|
|
|
|
|
|
First Niagara Financial Group, Inc. |
|
|
|
|
|
|
|
|
|
Key
Statistics |
|
|
|
|
|
|
|
|
|
(Risk
weighted assets in millions; share counts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
June 30, |
March 31, |
|
December 31, |
September 30, |
June 30, |
March 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Niagara Financial Group, Inc. capital ratios: |
|
|
|
|
|
|
|
|
|
|
Tier 1 risk
based capital |
|
|
10.24 |
% |
|
10.12 |
% |
|
|
10.08 |
% |
|
10.05 |
% |
|
10.03 |
% |
|
10.02 |
% |
|
|
Total risk
based capital |
|
|
12.22 |
% |
|
12.09 |
% |
|
|
12.01 |
% |
|
11.97 |
% |
|
11.96 |
% |
|
11.95 |
% |
|
|
Common
equity tier 1 capital |
|
|
8.69 |
% |
|
8.58 |
% |
|
|
8.55 |
% |
|
8.52 |
% |
|
8.50 |
% |
|
8.48 |
% |
|
|
Leverage |
|
|
7.54 |
% |
|
7.55 |
% |
|
|
7.62 |
% |
|
7.66 |
% |
|
7.60 |
% |
|
7.56 |
% |
|
|
Equity to
assets |
|
|
10.50 |
% |
|
10.36 |
% |
|
|
10.34 |
% |
|
10.50 |
% |
|
10.55 |
% |
|
10.60 |
% |
|
|
Tangible
common equity to tangible assets(1) |
|
|
6.41 |
% |
|
6.25 |
% |
|
|
6.21 |
% |
|
6.32 |
% |
|
6.32 |
% |
|
6.34 |
% |
|
|
Total risk
weighted assets |
|
$ |
28,660 |
|
$ |
28,809 |
|
|
$ |
28,881 |
|
$ |
28,716 |
|
$ |
28,445 |
|
$ |
28,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Niagara Bank, N.A. capital ratios: |
|
|
|
|
|
|
|
|
|
|
Tier 1 risk
based capital |
|
|
10.86 |
% |
|
10.73 |
% |
|
|
10.65 |
% |
|
10.67 |
% |
|
10.66 |
% |
|
10.65 |
% |
|
|
Total risk
based capital |
|
|
11.80 |
% |
|
11.67 |
% |
|
|
11.55 |
% |
|
11.56 |
% |
|
11.54 |
% |
|
11.53 |
% |
|
|
Common
equity tier 1 capital |
|
|
10.86 |
% |
|
10.73 |
% |
|
|
10.65 |
% |
|
10.67 |
% |
|
10.66 |
% |
|
10.65 |
% |
|
|
Leverage |
|
|
8.00 |
% |
|
8.00 |
% |
|
|
8.05 |
% |
|
8.12 |
% |
|
8.07 |
% |
|
8.03 |
% |
|
|
Total risk
weighted assets |
|
$ |
28,591 |
|
$ |
28,742 |
|
|
$ |
28,813 |
|
$ |
28,632 |
|
$ |
28,359 |
|
$ |
28,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
branches |
|
|
392 |
|
|
392 |
|
|
|
392 |
|
|
394 |
|
|
394 |
|
|
394 |
|
|
Full time
equivalent employees |
|
|
5,255 |
|
|
5,322 |
|
|
|
5,428 |
|
|
5,397 |
|
|
5,364 |
|
|
5,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
information and per share metrics: |
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding |
|
|
356,056 |
|
|
354,977 |
|
|
|
354,762 |
|
|
354,788 |
|
|
354,890 |
|
|
353,717 |
|
|
|
Preferred
shares outstanding |
|
|
14,000 |
|
|
14,000 |
|
|
|
14,000 |
|
|
14,000 |
|
|
14,000 |
|
|
14,000 |
|
|
|
Treasury
shares |
|
|
9,946 |
|
|
11,025 |
|
|
|
11,240 |
|
|
11,214 |
|
|
11,112 |
|
|
12,285 |
|
|
|
Market
price (NASDAQ: FNFG): |
|
$ |
9.74 |
|
$ |
9.68 |
|
|
$ |
10.85 |
|
$ |
10.21 |
|
$ |
9.44 |
|
$ |
8.84 |
|
|
|
Book value
per common share(2) |
|
|
10.95 |
|
|
10.84 |
|
|
|
10.78 |
|
|
10.82 |
|
|
10.77 |
|
|
10.80 |
|
|
|
Tangible
book value per common share(1)(2) |
|
|
7.01 |
|
|
6.88 |
|
|
|
6.81 |
|
|
6.84 |
|
|
6.77 |
|
|
6.78 |
|
|
|
Price/Book |
|
|
88.95 |
% |
|
89.30 |
% |
|
|
100.65 |
% |
|
94.36 |
% |
|
87.65 |
% |
|
81.85 |
% |
|
|
Price/Tangible book |
|
|
138.94 |
% |
|
140.70 |
% |
|
|
159.32 |
% |
|
149.27 |
% |
|
139.44 |
% |
|
130.38 |
% |
|
|
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 |
|
|
72.73 |
% |
|
72.73 |
% |
|
|
66.67 |
% |
|
53.33 |
% |
|
53.33 |
% |
|
66.67 |
% |
|
|
Dividend
yield (annualized) |
|
|
3.30 |
% |
|
3.32 |
% |
|
|
2.93 |
% |
|
3.11 |
% |
|
3.40 |
% |
|
3.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
The tables in
this earnings release present computation of earnings and certain
other ratios using non-GAAP financial measures, which we believe
provide investors with information that is useful in understanding
our financial performance and position. See Appendix A for further
detail. |
|
|
(2 |
) |
Share
count excludes unvested restricted stock shares. |
|
First Niagara Financial Group, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Appendix A
- Non-GAAP Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Six months
ended |
|
|
|
|
|
|
Second |
First |
|
Fourth |
Third |
Second |
First |
|
June 30, |
June 30, |
|
|
|
|
|
|
Quarter |
Quarter |
|
Quarter |
Quarter |
Quarter |
Quarter |
|
|
2016 |
|
|
2015 |
|
|
Financial ratios computed on an operating
basis(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per basic share |
|
$ |
0.18 |
|
$ |
0.14 |
|
|
$ |
0.16 |
|
$ |
0.15 |
|
$ |
0.15 |
|
$ |
0.15 |
|
|
$ |
0.32 |
|
$ |
0.31 |
|
|
Earnings
per diluted share |
|
$ |
0.18 |
|
$ |
0.14 |
|
|
$ |
0.15 |
|
$ |
0.15 |
|
$ |
0.15 |
|
$ |
0.15 |
|
|
$ |
0.32 |
|
$ |
0.30 |
|
|
Weighted
average shares outstanding - basic(2) |
|
|
352,134 |
|
|
351,372 |
|
|
|
351,306 |
|
|
351,293 |
|
|
351,126 |
|
|
350,741 |
|
|
|
351,753 |
|
|
350,935 |
|
|
Weighted
average shares outstanding - diluted(2) |
|
|
353,844 |
|
|
353,965 |
|
|
|
353,797 |
|
|
353,248 |
|
|
352,791 |
|
|
352,621 |
|
|
|
353,853 |
|
|
352,683 |
|
|
Noninterest
income as a percentage of net revenue(3) |
|
|
23.30 |
% |
|
22.81 |
% |
|
|
25.12 |
% |
|
24.05 |
% |
|
24.76 |
% |
|
23.83 |
% |
|
|
23.05 |
% |
|
24.30 |
% |
|
Pre-tax,
pre-provision income |
|
|
108,753 |
|
|
104,780 |
|
|
|
108,531 |
|
|
101,501 |
|
|
101,818 |
|
|
101,667 |
|
|
|
213,533 |
|
|
203,485 |
|
|
Pre-tax,
pre-provision income per diluted share |
|
$ |
0.31 |
|
$ |
0.30 |
|
|
$ |
0.31 |
|
$ |
0.29 |
|
$ |
0.29 |
|
$ |
0.29 |
|
|
$ |
0.60 |
|
$ |
0.58 |
|
|
Pre-tax,
pre-provision return on average assets |
|
|
1.09 |
% |
|
1.05 |
% |
|
|
1.09 |
% |
|
1.03 |
% |
|
1.05 |
% |
|
1.07 |
% |
|
|
1.07 |
% |
|
1.06 |
% |
|
Net
interest margin(4) |
|
|
2.92 |
% |
|
3.00 |
% |
|
|
2.98 |
% |
|
2.98 |
% |
|
3.02 |
% |
|
3.07 |
% |
|
|
2.96 |
% |
|
3.04 |
% |
|
Interest
yield on average loans(4) |
|
|
3.72 |
% |
|
3.73 |
% |
|
|
3.65 |
% |
|
3.64 |
% |
|
3.73 |
% |
|
3.75 |
% |
|
|
3.73 |
% |
|
3.74 |
% |
|
Rate paid
on interest-bearing liabilities |
|
|
0.60 |
% |
|
0.56 |
% |
|
|
0.51 |
% |
|
0.50 |
% |
|
0.49 |
% |
|
0.48 |
% |
|
|
0.58 |
% |
|
0.49 |
% |
|
Efficiency
ratio |
|
|
68.2 |
% |
|
69.8 |
% |
|
|
69.5 |
% |
|
70.7 |
% |
|
70.9 |
% |
|
70.5 |
% |
|
|
69.0 |
% |
|
70.7 |
% |
|
Effective
tax rate |
|
|
27.4 |
% |
|
30.2 |
% |
|
|
26.6 |
% |
|
26.0 |
% |
|
24.7 |
% |
|
30.0 |
% |
|
|
28.7 |
% |
|
27.5 |
% |
|
Return on
average assets |
|
|
0.70 |
% |
|
0.58 |
% |
|
|
0.63 |
% |
|
0.61 |
% |
|
0.63 |
% |
|
0.65 |
% |
|
|
0.64 |
% |
|
0.64 |
% |
|
Return on
average equity |
|
|
6.77 |
% |
|
5.56 |
% |
|
|
6.00 |
% |
|
5.78 |
% |
|
5.90 |
% |
|
6.12 |
% |
|
|
6.17 |
% |
|
6.01 |
% |
|
Return on
average tangible equity(5) |
|
|
10.15 |
% |
|
8.37 |
% |
|
|
9.05 |
% |
|
8.73 |
% |
|
8.94 |
% |
|
9.30 |
% |
|
|
9.26 |
% |
|
9.12 |
% |
|
Return on
average common equity |
|
|
6.57 |
% |
|
5.26 |
% |
|
|
5.75 |
% |
|
5.51 |
% |
|
5.63 |
% |
|
5.85 |
% |
|
|
5.92 |
% |
|
5.74 |
% |
|
Return on
average tangible common equity(6) |
|
|
10.31 |
% |
|
8.29 |
% |
|
|
9.07 |
% |
|
8.72 |
% |
|
8.94 |
% |
|
9.34 |
% |
|
|
9.30 |
% |
|
9.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of noninterest income on operating basis
to reported noninterest
income(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest income on operating basis (Non-GAAP) |
|
$ |
79,623 |
|
$ |
79,068 |
|
|
$ |
89,401 |
|
$ |
83,443 |
|
$ |
86,607 |
|
$ |
82,244 |
|
|
$ |
158,691 |
|
$ |
168,851 |
|
|
|
|
Loss on
sale of high yield securities |
|
|
(11,001 |
) |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(11,001 |
) |
|
- |
|
|
|
Total
reported noninterest income (GAAP) |
|
|
68,622 |
|
|
79,068 |
|
|
|
89,401 |
|
|
83,443 |
|
|
86,607 |
|
|
82,244 |
|
|
$ |
147,690 |
|
$ |
168,851 |
|
|
Reconciliation of noninterest expense on operating
basis to reported noninterest
expense(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest expense on operating basis (Non-GAAP) |
|
$ |
232,981 |
|
$ |
241,879 |
|
|
$ |
247,419 |
|
$ |
245,433 |
|
$ |
247,899 |
|
$ |
243,521 |
|
|
$ |
474,860 |
|
$ |
491,420 |
|
|
|
|
Merger and
acquisition integration expenses |
|
|
24,772 |
|
|
13,473 |
|
|
|
14,198 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
38,245 |
|
|
- |
|
|
|
|
Restructuring charges |
|
|
- |
|
|
- |
|
|
|
3,378 |
|
|
- |
|
|
- |
|
|
17,517 |
|
|
|
- |
|
|
17,517 |
|
|
|
Total
reported noninterest expense (GAAP) |
|
$ |
257,753 |
|
$ |
255,352 |
|
|
$ |
264,995 |
|
$ |
245,433 |
|
$ |
247,899 |
|
$ |
261,038 |
|
|
$ |
513,105 |
|
$ |
508,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net operating income to net
income(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating income (Non-GAAP) |
|
$ |
70,296 |
|
$ |
57,448 |
|
|
$ |
62,813 |
|
$ |
60,482 |
|
$ |
61,010 |
|
$ |
62,246 |
|
|
$ |
127,744 |
|
$ |
123,256 |
|
|
|
Nonoperating income and expenses, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
sale of high yield securities |
|
|
6,820 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
6,820 |
|
|
- |
|
|
|
|
Merger and
acquisition integration expenses |
|
|
17,044 |
|
|
9,141 |
|
|
|
9,919 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
26,185 |
|
|
- |
|
|
|
|
Restructuring charges |
|
|
- |
|
|
- |
|
|
|
2,094 |
|
|
- |
|
|
- |
|
|
10,861 |
|
|
|
- |
|
|
10,861 |
|
|
|
|
|
Total nonoperating
income and expenses, net of tax |
|
|
23,864 |
|
|
9,141 |
|
|
|
12,013 |
|
|
- |
|
|
- |
|
|
10,861 |
|
|
|
33,005 |
|
|
10,861 |
|
|
|
Net income
(GAAP) |
|
$ |
46,432 |
|
$ |
48,307 |
|
|
$ |
50,800 |
|
$ |
60,482 |
|
$ |
61,010 |
|
$ |
51,385 |
|
|
$ |
94,739 |
|
$ |
112,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
$ |
62,749 |
|
$ |
49,901 |
|
|
$ |
55,266 |
|
$ |
52,935 |
|
$ |
53,463 |
|
$ |
54,699 |
|
|
$ |
112,650 |
|
$ |
108,162 |
|
|
|
Nonoperating income and expenses, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
sale of high yield securities |
|
|
6,820 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
6,820 |
|
|
- |
|
|
|
|
Merger and
acquisition integration expenses |
|
|
17,044 |
|
|
9,141 |
|
|
|
9,919 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
26,185 |
|
|
- |
|
|
|
|
Restructuring charges |
|
|
- |
|
|
- |
|
|
|
2,094 |
|
|
- |
|
|
- |
|
|
10,861 |
|
|
|
- |
|
|
10,861 |
|
|
|
|
|
Total nonoperating
income and expenses, net of tax |
|
|
23,864 |
|
|
9,141 |
|
|
|
12,013 |
|
|
- |
|
|
- |
|
|
10,861 |
|
|
|
33,005 |
|
|
10,861 |
|
|
|
Net income available to common stockholders (GAAP) |
|
$ |
38,885 |
|
$ |
40,760 |
|
|
$ |
43,253 |
|
$ |
52,935 |
|
$ |
53,463 |
|
$ |
43,838 |
|
|
$ |
79,645 |
|
$ |
97,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of pre-tax, pre-provision income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
$ |
262,111 |
|
$ |
267,591 |
|
|
$ |
266,549 |
|
$ |
263,491 |
|
$ |
263,110 |
|
$ |
262,944 |
|
|
$ |
529,702 |
|
$ |
526,054 |
|
|
|
Noninterest
income |
|
|
68,622 |
|
|
79,068 |
|
|
|
89,401 |
|
|
83,443 |
|
|
86,607 |
|
|
82,244 |
|
|
|
147,690 |
|
|
168,851 |
|
|
|
Noninterest
expense |
|
|
(257,753 |
) |
|
(255,352 |
) |
|
|
(264,995 |
) |
|
(245,433 |
) |
|
(247,899 |
) |
|
(261,038 |
) |
|
|
(513,105 |
) |
|
(508,937 |
) |
|
|
Pre-tax,
pre-provision income (GAAP) |
|
|
72,980 |
|
|
91,307 |
|
|
|
90,955 |
|
|
101,501 |
|
|
101,818 |
|
|
84,150 |
|
|
|
164,287 |
|
|
185,968 |
|
|
|
Add back:
non-operating loss on sale of high yield securities |
|
|
11,001 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
11,001 |
|
|
- |
|
|
|
Add back:
non-operating noninterest expenses (1) |
|
|
24,772 |
|
|
13,473 |
|
|
|
17,576 |
|
|
- |
|
|
- |
|
|
17,517 |
|
|
|
38,245 |
|
|
17,517 |
|
|
|
Pre-tax,
pre-provision income (Non-GAAP)(1) |
|
$ |
108,753 |
|
$ |
104,780 |
|
|
$ |
108,531 |
|
$ |
101,501 |
|
$ |
101,818 |
|
$ |
101,667 |
|
|
$ |
213,533 |
|
$ |
203,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Noninterest income and 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 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Six months
ended |
|
|
|
|
|
|
Second |
First |
|
Fourth |
Third |
Second |
First |
|
June 30, |
June 30, |
|
|
|
|
|
|
Quarter |
Quarter |
|
Quarter |
Quarter |
Quarter |
Quarter |
|
|
2016 |
|
|
2015 |
|
|
Computation of Ending Tangible Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
39,991,381 |
|
$ |
40,072,435 |
|
|
$ |
39,918,386 |
|
$ |
39,413,181 |
|
$ |
39,063,543 |
|
$ |
38,907,479 |
|
|
$ |
39,991,381 |
|
$ |
39,063,543 |
|
|
|
Less:
Goodwill and other intangibles |
|
|
(1,389,132 |
) |
|
(1,392,367 |
) |
|
|
(1,396,227 |
) |
|
(1,400,199 |
) |
|
(1,404,201 |
) |
|
(1,410,800 |
) |
|
|
(1,389,132 |
) |
|
(1,404,201 |
) |
|
|
Tangible
assets |
|
$ |
38,602,249 |
|
$ |
38,680,068 |
|
|
$ |
38,522,159 |
|
$ |
38,012,982 |
|
$ |
37,659,342 |
|
$ |
37,496,679 |
|
|
$ |
38,602,249 |
|
$ |
37,659,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Average Tangible Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
40,248,615 |
|
$ |
39,959,615 |
|
|
$ |
39,576,697 |
|
$ |
39,051,359 |
|
$ |
38,913,219 |
|
$ |
38,706,545 |
|
|
$ |
40,104,115 |
|
$ |
38,810,454 |
|
|
|
Less:
Goodwill and other intangibles |
|
|
(1,390,654 |
) |
|
(1,394,178 |
) |
|
|
(1,398,122 |
) |
|
(1,402,138 |
) |
|
(1,407,946 |
) |
|
(1,413,765 |
) |
|
|
(1,392,416 |
) |
|
(1,410,840 |
) |
|
|
Tangible
assets |
|
$ |
38,857,961 |
|
$ |
38,565,437 |
|
|
$ |
38,178,575 |
|
$ |
37,649,221 |
|
$ |
37,505,273 |
|
$ |
37,292,780 |
|
|
$ |
38,711,699 |
|
$ |
37,399,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Ending Tangible Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
$ |
4,199,792 |
|
$ |
4,149,703 |
|
|
$ |
4,126,328 |
|
$ |
4,139,377 |
|
$ |
4,121,125 |
|
$ |
4,125,246 |
|
|
$ |
4,199,792 |
|
$ |
4,121,125 |
|
|
|
Less:
Goodwill and other intangibles |
|
|
(1,389,132 |
) |
|
(1,392,367 |
) |
|
|
(1,396,227 |
) |
|
(1,400,199 |
) |
|
(1,404,201 |
) |
|
(1,410,800 |
) |
|
|
(1,389,132 |
) |
|
(1,404,201 |
) |
|
|
Tangible
equity |
|
$ |
2,810,660 |
|
$ |
2,757,336 |
|
|
$ |
2,730,101 |
|
$ |
2,739,178 |
|
$ |
2,716,924 |
|
$ |
2,714,446 |
|
|
$ |
2,810,660 |
|
$ |
2,716,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Ending Tangible Common Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
$ |
4,199,792 |
|
$ |
4,149,703 |
|
|
$ |
4,126,328 |
|
$ |
4,139,377 |
|
$ |
4,121,125 |
|
$ |
4,125,246 |
|
|
$ |
4,199,792 |
|
$ |
4,121,125 |
|
|
|
Less:
Goodwill and other intangibles |
|
|
(1,389,132 |
) |
|
(1,392,367 |
) |
|
|
(1,396,227 |
) |
|
(1,400,199 |
) |
|
(1,404,201 |
) |
|
(1,410,800 |
) |
|
|
(1,389,132 |
) |
|
(1,404,201 |
) |
|
|
Less:
Preferred stockholders' equity |
|
|
(338,002 |
) |
|
(338,002 |
) |
|
|
(338,002 |
) |
|
(338,002 |
) |
|
(338,002 |
) |
|
(338,002 |
) |
|
|
(338,002 |
) |
|
(338,002 |
) |
|
|
Tangible
common equity |
|
$ |
2,472,658 |
|
$ |
2,419,334 |
|
|
$ |
2,392,099 |
|
$ |
2,401,176 |
|
$ |
2,378,922 |
|
$ |
2,376,444 |
|
|
$ |
2,472,658 |
|
$ |
2,378,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Average Tangible Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
$ |
4,177,087 |
|
$ |
4,154,033 |
|
|
$ |
4,152,977 |
|
$ |
4,149,635 |
|
$ |
4,145,334 |
|
$ |
4,127,743 |
|
|
$ |
4,165,560 |
|
$ |
4,136,587 |
|
|
|
Less:
Goodwill and other intangibles |
|
|
(1,390,654 |
) |
|
(1,394,178 |
) |
|
|
(1,398,122 |
) |
|
(1,402,138 |
) |
|
(1,407,946 |
) |
|
(1,413,765 |
) |
|
|
(1,392,416 |
) |
|
(1,410,840 |
) |
|
|
Tangible
equity |
|
$ |
2,786,433 |
|
$ |
2,759,855 |
|
|
$ |
2,754,855 |
|
$ |
2,747,497 |
|
$ |
2,737,388 |
|
$ |
2,713,978 |
|
|
$ |
2,773,144 |
|
$ |
2,725,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Average Tangible Common
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
$ |
4,177,087 |
|
$ |
4,154,033 |
|
|
$ |
4,152,977 |
|
$ |
4,149,635 |
|
$ |
4,145,334 |
|
$ |
4,127,743 |
|
|
$ |
4,165,560 |
|
$ |
4,136,587 |
|
|
|
Less:
Goodwill and other intangibles |
|
|
(1,390,654 |
) |
|
(1,394,178 |
) |
|
|
(1,398,122 |
) |
|
(1,402,138 |
) |
|
(1,407,946 |
) |
|
(1,413,765 |
) |
|
|
(1,392,416 |
) |
|
(1,410,840 |
) |
|
|
Less:
Preferred stockholders' equity |
|
|
(338,002 |
) |
|
(338,002 |
) |
|
|
(338,002 |
) |
|
(338,002 |
) |
|
(338,002 |
) |
|
(338,002 |
) |
|
|
(338,002 |
) |
|
(338,002 |
) |
|
|
Tangible
common equity |
|
$ |
2,448,431 |
|
$ |
2,421,853 |
|
|
$ |
2,416,853 |
|
$ |
2,409,495 |
|
$ |
2,399,386 |
|
$ |
2,375,976 |
|
|
$ |
2,435,142 |
|
$ |
2,387,745 |
|
|
First Niagara Contacts
Investors:
Brandon Kraatz
Vice President,
Investor Relations
(716) 819-5669
brandon.kraatz@fnfg.com
News Media:
David Lanzillo
Senior Vice President,
Corporate Communications
(716) 819-5780
david.lanzillo@fnfg.com
Grafico Azioni First Niagara Financial Grp. Inc. (MM) (NASDAQ:FNFG)
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Da Apr 2024 a Mag 2024
Grafico Azioni First Niagara Financial Grp. Inc. (MM) (NASDAQ:FNFG)
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Da Mag 2023 a Mag 2024