- Loan originations total $3.5 billion, up 20% over prior year
- Core deposits rise by 11% in 2009
- Strength of capital, credit and liquidity continues to distinguish
- Over 300 new jobs in New York and Pennsylvania markets-200 more to be added
- Expanded franchise poised for superior growth
BUFFALO, N.Y., Jan. 21, 2010 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (Nasdaq:FNFG) concluded a highly successful 2009 with a solid fourth quarter performance that brought operating(Non-GAAP) net income to over $100 million for the year, an 18% increase from the prior year. The Company has continued to capitalize on its financial strength and proven business model to drive profitable growth across its Upstate New York and Western Pennsylvania markets.
For the full year 2009, the Company generated operating (Non-GAAP) net income – that is, reported net income exclusive of nonrecurring items - of $105.6 million compared to $89.8 million in 2008. The corresponding earnings per diluted share of $0.72 in 2009 versus $0.83 in the prior year reflects the impact of 78 million incremental shares issued in three equity offerings since late 2008 to further strengthen the Company’s offensive capital position. Average diluted common shares outstanding totaled 147.2 million in 2009 compared to 108.2 million in 2008. Reported (GAAP) net income inclusive of non-recurring items, primarily acquisition and integration expenses, totaled $79.4 million or $0.46 per diluted share for 2009 and $88.4 million or $0.81 per diluted share for 2008. Fourth quarter operating (Non-GAAP) net income amounted to $31.3 million or $0.17 per diluted share. Reported (GAAP) net income for the fourth quarter was $28.9 million or $0.16 per diluted share.
“The fourth quarter culminated an exceptional year for us, especially in light of the economic environment,” President and CEO John R. Koelmel said. “We have delivered financially while advancing our growth strategy with determination and passion. The strength of our performance has allowed us to continue making the required investments in all areas vital to supporting our ongoing expansion. We have the balance sheet strength, talent, and mindset to seize on our competitive advantages and drive the franchise further. Early results after hitting the ground running in Western Pennsylvania are very favorable. Deposit retention and strong new business generation are exceeding our expectations, validating the market opportunity as well as the great energy and commitment of our employee team. The success of our equity offerings and the solid debt ratings recently received are important external signs of confidence. Our pride in our accomplishments is only matched by our excitement and enthusiasm as we look to even greater opportunities in the year ahead.”
Mr. Koelmel added, “Throughout the economic crisis and turmoil in our industry, we have been a poster child for what a healthy bank should be doing to provide real stimulus and help Main Street get back on its feet. We have been aggressively and enthusiastically meeting the credit needs of worthy borrowers with $3.5 billion in new originations. We are supporting much needed job creation with over 300 new hires with plans to add at least 200 more. We also have active outreach programs in place to provide valuable financial and intellectual capital assistance in all of our communities. As we continue to grow as a company, our commitment remains steadfast to make an even greater impact.”
Full Year Results
| Operating Results (Non-GAAP) | 2009 | 2008 |
| Net interest income | $364.4 | $268.6 |
| Provision for credit losses | 43.7 | 22.5 |
| Noninterest income | 123.5 | 115.7 |
| Noninterest expense | 280.5 | 226.2 |
| Net income | 105.6 | 89.8 |
| Weighted average diluted shares outstanding | 147.2 | 108.2 |
| Earnings per diluted share | $0.72 | $0.83 |
|
Reported Results (GAAP) |
||
| Nonrecurring items(a) | $26.2 | $1.4 |
| Net income | 79.4 | 88.4 |
| TARP(b) | 12.0 | 1.2 |
| Net income available to shareholders | 67.3 | 87.3 |
| Weighted average diluted shares outstanding | 147.2 | 108.2 |
| Earnings per diluted share | $0.46 | $0.81 |
All amounts in millions except earnings per diluted share. The Non-GAAP/Operating Results table above summarized the Company’s operating results excluding certain non-recurring items.
(a) 2009 - Q4: After-tax noninterest expense: Harleysville National Corporation acquisition related expenses of $2.4 million. 2009 - Q3: After-tax noninterest income: Gain on the sale of the merchant services’ customer list of $1.5 million. After-tax noninterest expense: Expenses of $14.9 million primarily related to the National City branch acquisition and anticipated merger with Harleysville National Corporation. Also, a $3.0 million contribution to the First Niagara Bank Foundation in support of charitable giving in Western Pennsylvania. 2009 - Q2: After-tax noninterest expense: FDIC special assessment charge of $3.3 million based on each insured depository institution’s assets less Tier 1 Capital. Also, expenses related to the National City branch acquisition of $1.4 million. 2009 - Q1: After-tax noninterest expense: Settlement of service mark infringement matter of $1.8 million and professional service fees related to the National City branch acquisition of $1.0 million.
2008 – Q1 After-tax noninterest expense: real estate write-downs and severance related to the acquisition of Greater Buffalo Savings Bank of $1.4 million.
(b) 2009 - Q2: Accelerated discount accretion of $7.7 million resulting from the redemption of preferred stock purchased by the U.S. Treasury Department under the Troubled Asset Relief Program and $1.7 million of accrued dividends and preferred stock discount accretion through the redemption date. 2009 – Q1: Accrued dividends and preferred stock discount accretion of $2.7 million.
2008 – Q4: Accrued dividends and preferred stock discount accretion of $1.2 million
Chief Financial Officer Michael H. Harrington said, “Our fundamentals have been consistently strong and the fourth quarter was no exception. Commercial loan volume continues to grow at a robust pace. Our focused relationship approach has led to healthy growth in low-cost core deposits and has driven our interest margin to a cyclical high. Our disciplined underwriting and in-depth knowledge of local markets continues to result in excellent credit quality which compares quite favorably to industry peers. Our ample level of capital provides a strong line of defense against current economic weakness while allowing us to confidently pursue a growth strategy. We are entering the new year with sustained momentum and are operating from a position of real strength.”
Quarterly Results
| Operating Results (Non-GAAP) | Q4 2009 | Q3 2009 | Q4 2008 | |
| Net interest income | $112.9 | $98.9 | $71.7 | |
| Provision for credit losses | 11.0 | 15.0 | 8.0 | |
| Noninterest income | 35.5 | 30.7 | 27.6 | |
| Noninterest expense | 90.7 | 70.9 | 57.5 | |
| Net income | 31.3 | 27.3 | 22.8 | |
| Weighted average diluted shares outstanding | 185.3 | 147.2 | 115.6 | |
| Earnings per diluted share | $0.17 | $0.19 | $0.20 | |
|
Reported Results (GAAP) |
||||
| Nonrecurring(c) | $2.4 | $16.4 | $0.0 | |
| Net income | 28.9 | 10.9 | 22.8 | |
| TARP(d) | -- | -- | 1.2 | |
| Net income available to shareholders | 28.9 | 10.9 | 21.6 | |
| Weighted average diluted shares outstanding | 185.3 | 147.2 | 115.6 | |
| Earnings per diluted share | $0.16 | $0.07 | $0.19 | |
All amounts in millions except earnings per diluted share. The Non-GAAP/Operating Results table above summarized the Company’s operating results excluding certain non-recurring items.
(c) 2009 - Q4: After-tax noninterest expense: Harleysville National Corporation acquisition related expenses of $2.4 million. 2009 - Q3: After-tax noninterest income: Gain on the sale of the merchant services’ customer list of $1.5 million. After-tax noninterest expense: Expenses of $14.9 million, primarily related to the National City branch acquisition and anticipated merger with Harleysville National Corporation. Also, a $3.0 million contribution to the First Niagara Bank Foundation in support of charitable giving in Western Pennsylvania.
(d) 2008 – Q4: Accrued dividends and preferred stock discount accretion of $1.2 million.
Pennsylvania Market Update
The Company continues to make excellent progress in the integration of the former National City branches in Western Pennsylvania and planning for the acquisition of Harleysville National Corporation in Eastern Pennsylvania. After the expected first quarter 2010 closing of this latter transaction, the Company will have 140 branches, $8.0 billion in deposits and $3.7 billion in loans in its Pennsylvania marketplace.
Western Pennsylvania: All major integration initiatives, including systems conversions, staffing, and initial branding have been successfully completed. Business generation efforts have been very encouraging. Deposit retention stood at 95% as of year end and strong new loan origination volume totaled $371 million in the fourth quarter. Cross-selling of First Niagara products and services has met with initial success, especially in branch based wealth management services.
Eastern Pennsylvania: The successful integration effort in Western Pennsylvania lays the groundwork for a smooth integration. Systems conversions including networks, equipment, and major applications are planned for the first quarter. The restoration of Harleysville National Bank to well-capitalized status for regulatory purposes has been completed and each major business line has plans in place for new business generation including cross-selling First Niagara’s services to Harleysville’s customer base.
Loans
Loan activity was robust throughout the year. Total loan and line of credit originations grew to $3.5 billion in 2009, up 20% from 2008. Average commercial loan balances in Upstate New York markets grew by $325 million or 9% over the prior year. Business loans sustained their double-digit growth rate during the year, including 10% annualized growth in the fourth quarter, and were accompanied by consistent growth in the commercial real estate portfolio. Commercial loan pipelines remain strong. Similarly, the home equity portfolio benefited from increased line usage and newer customers as average balances grew by $67 million or 11% in 2009. Residential loan originations totaled $575 million in 2009 while average balances declined by $247 million or 12% from the prior year as the Company continued selling the majority of its long-term fixed rate mortgages into the secondary markets for balance sheet management purposes.
Credit Quality
During the fourth quarter, nonperforming loans increased by only $1.8 million from the linked quarter to $68.6 million. At year end, nonperforming loans were 0.94% of total loans compared to 0.93% in the linked quarter and 0.72% at the prior year end. Net charge-offs in the fourth quarter declined to $5.8 million or 0.32% annualized of average loans compared to $14.5 million or 0.87% annualized in the linked quarter. Full year 2009 net charge-offs were 0.50% of average loans compared to 0.28% in the prior year. The provision for credit losses was $11.0 million in the fourth quarter compared to $15.0 million in the linked quarter. The allowance for credit losses was 1.20% of total loans at December 31, 2009, compared to 1.15% at the end of the linked quarter and 1.20% at the prior year end. Excluding loans obtained in the National City branch acquisition, which were recorded at fair market value as of the acquisition date, the allowance for credit losses was 1.33% of total loans compared to 1.28% in the linked quarter and 1.20% at the prior year end.
Deposits
The Company’s emphasis on low-cost profitable relationships continues to generate strong core deposit growth. Excluding the deposits associated with the acquired branches, average core deposits grew by $341 million or 11% in 2009. In the fourth quarter, core deposits grew by 9% annualized over the linked quarter. Much of this growth stemmed from higher retail money market and business checking balances. Conversely, higher cost CD balances declined by 26% on average in 2009. Core deposits have now risen to 70% of total deposits versus 66% a year ago. The Company’s liquidity position has been similarly strengthened with a loans-to-deposit ratio of 75% at the end of 2009 versus 109% a year earlier.
Net Interest Income
Net interest income grew significantly in 2009 to $364 million, an increase of $96 million or 36% over the prior year. This was driven by a number of factors including strong loan growth, considerably lower funding costs, and the September acquisition of the former National City branches. The tax equivalent net interest margin grew each successive quarter during 2009 and ended the year at 3.69% in the fourth quarter. The overall cost of interest-bearing liabilities dropped sharply in 2009 to 1.49% from 2.59% in the prior year as the Company benefited from core deposit growth, a decline in higher cost CD’s, and the periodic use of advantaged wholesale borrowings.
Noninterest Income
Operating (Non-GAAP) noninterest income rose by 7% to $123.5 million in 2009 from $115.7 million in 2008 primarily due to higher deposit related banking fees including those from the acquired branches. Most other categories of noninterest income were fairly stable for the year. Reported (GAAP) noninterest income of $126.0 million in 2009 included a third quarter gain on the sale of the merchant services’ customer list. Reported (GAAP) noninterest income totaled $35.5 million in the fourth quarter and included the initial success in cross-selling wealth management services to the Western Pennsylvania customer base.
Noninterest Expense
Operating (Non-GAAP) noninterest expense increased to $280.5 million in 2009 from $226.2 million in 2008, with the increase attributable to the acquired Western Pennsylvania franchise, higher FDIC premiums and targeted investments to build additional operating capacity to support the Harleysville acquisition as well as future growth opportunities. Operating (Non-GAAP) noninterest expense for the fourth quarter amounted to $90.7 million. Reported (GAAP) noninterest expense for full year 2009 and the fourth quarter was $326.7 million and $94.7 million, respectively, and included ongoing merger and integration costs.
Capital Management
The tangible equity ratio - that is, tangible common shareholders’ equity as a percentage of tangible assets - at December 31, 2009 was 10.5% compared to 11.0% a year earlier. Additionally, consolidated Total Risk Based capital and Tier 1 Risk Based Capital ratios were 18.5% and 17.4%, respectively. These strong levels reflect three successful equity offerings since September of 2008 in which the Company issued an additional 78 million shares and raised $955 million in new capital. The weighted average diluted shares outstanding for the fourth quarter were 185.3 million compared to 115.6 million for the fourth quarter of 2008.
First Niagara Financial Group, Inc., through its wholly owned subsidiary, First Niagara Bank, will have $19.3 billion in assets, 254 branches and $13.9 billion in deposits at the close of its acquisition of Harleysville National Corporation, which is expected in the first quarter of 2010, subject to regulatory and Harleysville shareholder approval. First Niagara Bank is a community-oriented bank providing financial services to individuals, families and businesses across Upstate New York and Pennsylvania. For more information, visit www.fnfg.com.
Conference Call – A conference call will be held at 11 a.m. Eastern Time on Thursday, January 21, 2010 to discuss the Company’s financial results and business strategy. Those wishing to participate in the call may dial toll-free 1-877-709-8150. A replay of the call will be available until February 4, 2010 by dialing 1-877-660-6853, account #240, ID # 342420.
Non-GAAP Measures - 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 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. The Company believes that the ratio of tangible common shareholders’ equity as a percentage of tangible assets is a measure of capital strength that provides additional useful information to investors supplementing the Total Risk Based Capital and Tier 1 Risk Based ratios. This ratio excludes intangible assets from the numerator and the denominator and expresses a percentage of the actual book value of assets, as opposed to a percentage of a risk-based reduced value established in accordance with regulatory requirements.
Forward-Looking Statements - This press release contains forward-looking statements with respect to the financial condition and results of operations of First Niagara Financial Group, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans that could result from an economic downturn; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with an increase in commercial real-estate and business loans and non-performing loans.
| First Niagara Financial Group, Inc. | ||||||||
| Summary of Quarterly Financial Data (unaudited) | ||||||||
| 2009 | ||||||||
| December 31, | September 30, | June 30, | March 31, | |||||
| SELECTED FINANCIAL DATA | ||||||||
| (Amounts in thousands) | ||||||||
| Securities available for sale | $ | 4,421,678 | 3,652,261 | 3,339,871 | 1,800,933 | |||
| Securities held to maturity | $ | 1,093,552 | 1,085,258 | 398,049 | -- | |||
| Loans and leases: | ||||||||
| Commercial: | ||||||||
| Real estate | $ | 3,061,582 | 2,973,964 | 2,656,650 | 2,593,752 | |||
| Business | $ | 1,481,845 | 1,425,956 | 983,913 | 969,836 | |||
| Specialized lending | $ | 207,749 | 208,574 | 182,297 | 174,711 | |||
| Total commercial loans | $ | 4,751,176 | 4,608,494 | 3,822,860 | 3,738,299 | |||
| Residential real estate | $ | 1,674,961 | 1,725,943 | 1,815,041 | 1,914,691 | |||
| Home equity | $ | 691,069 | 662,308 | 647,878 | 629,916 | |||
| Other consumer | $ | 186,341 | 189,271 | 129,738 | 134,689 | |||
| Net deferred costs and discounts | $ | 25,909 | 29,746 | 30,864 | 31,813 | |||
| Total loans and leases | $ | 7,329,456 | 7,215,762 | 6,446,381 | 6,449,408 | |||
| Allowance for credit losses | $ | 88,303 | 83,077 | 82,542 | 79,613 | |||
| Loans and leases, net | $ | 7,241,153 | 7,132,685 | 6,363,839 | 6,369,795 | |||
| Goodwill and other intangibles | $ | 935,384 | 938,687 | 781,047 | 782,808 | |||
| Total assets | $ | 14,584,833 | 14,137,504 | 11,577,171 | 9,587,977 | |||
| Total interest-earning assets | $ | 12,902,813 | 12,514,069 | 10,278,403 | 8,368,268 | |||
| Deposits: | ||||||||
| Savings | $ | 916,854 | 913,144 | 805,646 | 786,535 | |||
| Interest-bearing checking | $ | 1,063,065 | 1,062,681 | 522,977 | 503,863 | |||
| Money market deposits | $ | 3,535,736 | 3,457,837 | 2,375,493 | 2,216,321 | |||
| Noninterest-bearing | $ | 1,256,537 | 1,213,978 | 761,160 | 705,965 | |||
| Certificates | $ | 2,957,332 | 3,275,728 | 1,775,052 | 2,015,412 | |||
| Total deposits | $ | 9,729,524 | 9,923,368 | 6,240,328 | 6,228,096 | |||
| Borrowings | $ | 2,302,280 | 1,515,148 | 3,192,837 | 1,446,885 | |||
| Total interest-bearing liabilities | $ | 10,775,267 | 10,224,538 | 8,672,005 | 6,969,016 | |||
| Net interest-earning assets | $ | 2,127,546 | 2,289,531 | 1,606,398 | 1,399,252 | |||
| Stockholders' equity | $ | 2,373,661 | 2,383,604 | 1,918,579 | 1,742,391 | |||
| Tangible equity (1) | $ | 1,438,277 | 1,444,917 | 1,137,532 | 959,583 | |||
| Unrealized gain (loss) on securities | $ | 17,206 | 34,057 | 3,064 | 852 | |||
| Total loans serviced for others | $ | 823,889 | 770,290 | 678,885 | 615,491 | |||
| ASSET QUALITY DATA | ||||||||
| (Amounts in thousands) | ||||||||
| Nonperforming loans: | ||||||||
| Commercial real estate | $ | 37,129 | 32,477 | 32,075 | 33,536 | |||
| Commercial business | $ | 4,759 | 4,629 | 4,542 | 3,772 | |||
| Specialized lending | $ | 1,962 | 3,105 | 3,609 | 4,728 | |||
| Shared national credits | $ | 11,403 | 14,103 | 573 | 172 | |||
| Residential real estate | $ | 9,468 | 9,140 | 8,030 | 6,600 | |||
| Home equity | $ | 2,330 | 2,979 | 2,714 | 2,791 | |||
| Other consumer | $ | 1,510 | 373 | 754 | 319 | |||
| Total nonperforming loans | $ | 68,561 | 66,806 | 52,297 | 51,918 | |||
| Real estate owned | $ | 7,057 | 8,872 | 5,758 | 2,001 | |||
| Total nonperforming assets | $ | 75,618 | 75,678 | 58,055 | 53,919 | |||
| Net loan charge-offs (recoveries): | ||||||||
| Commercial real estate | $ | 2,056 | 2,213 | 858 | 4,552 | |||
| Commercial business | $ | 884 | 1,768 | 2,309 | 729 | |||
| Specialized lending | $ | 2,031 | 1,518 | 1,980 | 1,059 | |||
| Shared national credits | $ | 43 | 8,500 | -- | -- | |||
| Residential real estate | $ | 11 | 35 | 98 | 13 | |||
| Home equity | $ | 298 | 125 | 338 | 110 | |||
| Other consumer | $ | 451 | 306 | 388 | 467 | |||
| Total net loan charge-offs | $ | 5,774 | 14,465 | 5,971 | 6,930 | |||
| 2008 | |||||||||||
| December 31, | September 30, | June 30, | March 31, | ||||||||
| SELECTED FINANCIAL DATA | |||||||||||
| (Amounts in thousands) | |||||||||||
| Securities available for sale | $ | 1,573,101 | 1,250,074 | 1,289,738 | 1,414,774 | ||||||
| Securities held to maturity | $ | -- | -- | -- | -- | ||||||
| Loans and leases: | |||||||||||
| Commercial: | |||||||||||
| Real estate | $ | 2,551,966 | 2,489,601 | 2,468,932 | 2,388,769 | ||||||
| Business | $ | 940,304 | 914,452 | 906,810 | 863,152 | ||||||
| Specialized lending | $ | 178,916 | 184,739 | 181,683 | 174,476 | ||||||
| Total commercial loans | $ | 3,671,186 | 3,588,792 | 3,557,425 | 3,426,397 | ||||||
| Residential real estate | $ | 1,990,784 | 2,038,351 | 2,094,813 | 2,149,363 | ||||||
| Home equity | $ | 624,495 | 607,800 | 589,846 | 564,164 | ||||||
| Other consumer | $ | 143,989 | 152,640 | 162,603 | 173,264 | ||||||
| Net deferred costs and discounts | $ | 33,321 | 33,895 | 34,106 | 34,980 | ||||||
| Total loans and leases | $ | 6,463,775 | 6,421,478 | 6,438,793 | 6,348,168 | ||||||
| Allowance for credit losses | $ | 77,793 | 77,664 | 75,128 | 74,283 | ||||||
| Loans and leases, net | $ | 6,385,982 | 6,343,814 | 6,363,665 | 6,273,885 | ||||||
| Goodwill and other intangibles | $ | 784,549 | 803,914 | 806,327 | 808,262 | ||||||
| Total assets | $ | 9,331,372 | 9,008,383 | 9,074,502 | 9,067,701 | ||||||
| Total interest-earning assets | $ | 8,136,806 | 7,782,496 | 7,825,324 | 7,813,212 | ||||||
| Deposits: | |||||||||||
| Savings | $ | 788,767 | 778,794 | 811,160 | 795,464 | ||||||
| Interest-bearing checking | $ | 485,220 | 521,206 | 505,656 | 509,121 | ||||||
| Money market deposits | $ | 1,940,136 | 1,915,122 | 1,974,430 | 1,885,113 | ||||||
| Noninterest-bearing | $ | 718,593 | 693,424 | 728,839 | 680,397 | ||||||
| Certificates | $ | 2,010,897 | 1,908,174 | 2,138,148 | 2,367,176 | ||||||
| Total deposits | $ | 5,943,613 | 5,816,720 | 6,158,233 | 6,237,271 | ||||||
| Borrowings | $ | 1,540,227 | 1,603,777 | 1,363,379 | 1,265,521 | ||||||
| Total interest-bearing liabilities | $ | 6,765,247 | 6,727,073 | 6,792,773 | 6,822,395 | ||||||
| Net interest-earning assets | $ | 1,371,559 | 1,055,423 | 1,032,551 | 990,817 | ||||||
| Stockholders' equity | $ | 1,727,263 | 1,441,022 | 1,431,352 | 1,432,632 | ||||||
| Tangible equity (1) | $ | 942,714 | 637,108 | 625,025 | 624,370 | ||||||
| Unrealized gain (loss) on securities | $ | (12,716) | (11,132) | (6,011) | 5,853 | ||||||
| Total loans serviced for others | $ | 568,767 | 568,750 | 570,614 | 571,707 | ||||||
| ASSET QUALITY DATA | |||||||||||
| (Amounts in thousands) | |||||||||||
| Nonperforming loans: | |||||||||||
| Commercial real estate | $ | 26,546 | 28,884 | 20,456 | 19,921 | ||||||
| Commercial business | $ | 7,411 | 4,274 | 4,095 | 3,518 | ||||||
| Specialized lending | $ | 4,354 | 4,205 | 3,430 | 2,872 | ||||||
| Shared national credits | $ | -- | -- | -- | -- | ||||||
| Residential real estate | $ | 5,516 | 5,167 | 4,957 | 5,113 | ||||||
| Home equity | $ | 2,076 | 1,541 | 927 | 1,180 | ||||||
| Other consumer | $ | 514 | 627 | 528 | 832 | ||||||
| Total nonperforming loans | $ | 46,417 | 44,698 | 34,393 | 33,436 | ||||||
| Real estate owned | $ | 2,001 | 2,782 | 1,414 | 976 | ||||||
| Total nonperforming assets | $ | 48,418 | 47,480 | 35,807 | 34,412 | ||||||
| Net loan charge-offs (recoveries): | |||||||||||
| Commercial real estate | $ | 1,364 | 2,151 | 1,550 | 230 | ||||||
| Commercial business | $ | 4,777 | 696 | 1,400 | 587 | ||||||
| Specialized lending | $ | 1,193 | 647 | 813 | 879 | ||||||
| Shared national credits | $ | -- | -- | -- | -- | ||||||
| Residential real estate | $ | 32 | -- | (34) | 79 | ||||||
| Home equity | $ | 177 | (15) | 23 | 2 | ||||||
| Other consumer | $ | 328 | 485 | 303 | 177 | ||||||
| Total net loan charge-offs | $ | 7,871 | 3,964 | 4,055 | 1,954 | ||||||
| First Niagara Financial Group, Inc. | |||||||||
| Summary of Quarterly Financial Data (unaudited) (Cont'd) | |||||||||
| 2009 | |||||||||
| Year Ended | Fourth | Third | Second | First | |||||
| December 31 | Quarter | Quarter | Quarter | Quarter | |||||
| SELECTED OPERATIONS DATA | |||||||||
| (Amounts in thousands) | |||||||||
| Interest income | $ | 490,758 | 145,357 | 128,788 | 110,794 | 105,819 | |||
| Interest expense | $ | 126,358 | 32,454 | 29,866 | 30,849 | 33,189 | |||
| Net interest income | $ | 364,400 | 112,903 | 98,922 | 79,945 | 72,630 | |||
| Provision for credit losses | $ | 43,650 | 11,000 | 15,000 | 8,900 | 8,750 | |||
| Net interest income after provision | $ | 320,750 | 101,903 | 83,922 | 71,045 | 63,880 | |||
| Noninterest income: | |||||||||
| Banking services | $ | 49,538 | 17,016 | 12,499 | 10,053 | 9,970 | |||
| Insurance and benefits consulting | $ | 48,958 | 11,074 | 12,172 | 13,164 | 12,548 | |||
| Wealth management services | $ | 8,555 | 2,655 | 1,848 | 1,834 | 2,218 | |||
| Lending and leasing | $ | 10,888 | 3,714 | 2,950 | 2,240 | 1,984 | |||
| Bank owned life insurance | $ | 5,251 | 1,320 | 1,301 | 1,321 | 1,309 | |||
| Other | $ | 2,785 | (262) | 2,454 | 162 | 431 | |||
| Total noninterest income | $ | 125,975 | 35,517 | 33,224 | 28,774 | 28,460 | |||
| Noninterest expense: | |||||||||
| Salaries and benefits | $ | 161,548 | 50,919 | 42,223 | 35,169 | 33,237 | |||
| Occupancy and equipment | $ | 29,113 | 9,126 | 7,620 | 5,901 | 6,466 | |||
| Technology and communications | $ | 24,770 | 8,271 | 6,095 | 5,351 | 5,053 | |||
| Marketing and advertising | $ | 10,281 | 2,618 | 2,550 | 2,581 | 2,532 | |||
| Professional services | $ | 6,131 | 2,141 | 1,481 | 1,300 | 1,209 | |||
| Amortization of intangibles | $ | 9,418 | 3,414 | 2,266 | 1,847 | 1,891 | |||
| FDIC premiums | $ | 16,668 | 4,335 | 3,854 | 6,980 | 1,499 | |||
| Merger and acquisition integration expenses | $ | 31,467 | 4,009 | 23,354 | 2,342 | 1,762 | |||
| Other | $ | 37,276 | 9,887 | 11,277 | 6,614 | 9,498 | |||
| Total noninterest expense | $ | 326,672 | 94,720 | 100,720 | 68,085 | 63,147 | |||
| Income before income taxes | $ | 120,053 | 42,700 | 16,426 | 31,734 | 29,193 | |||
| Income taxes | $ | 40,676 | 13,796 | 5,495 | 10,934 | 10,451 | |||
| Net income | $ | 79,377 | 28,904 | 10,931 | 20,800 | 18,742 | |||
| Preferred stock dividend and accretion | $ | 12,046 | -- | -- | 9,378 | 2,668 | |||
| Net income available to common stockholders | $ | 67,331 | 28,904 | 10,931 | 11,422 | 16,074 | |||
| 2008 | |||||||||
| Year Ended | Fourth | Third | Second | First | |||||
| December 31, | Quarter | Quarter | Quarter | Quarter | |||||
| SELECTED OPERATIONS DATA | |||||||||
| (Amounts in thousands) | |||||||||
| Interest income | $ | 441,138 | 109,798 | 109,951 | 111,402 | 109,987 | |||
| Interest expense | $ | 172,561 | 38,092 | 39,751 | 44,793 | 49,925 | |||
| Net interest income | $ | 268,577 | 71,706 | 70,200 | 66,609 | 60,062 | |||
| Provision for credit losses | $ | 22,500 | 8,000 | 6,500 | 4,900 | 3,100 | |||
| Net interest income after provision | $ | 246,077 | 63,706 | 63,700 | 61,709 | 56,962 | |||
| Noninterest income: | |||||||||
| Banking services | $ | 40,082 | 10,427 | 10,390 | 9,955 | 9,310 | |||
| Insurance and benefits consulting | $ | 49,733 | 11,540 | 12,302 | 13,129 | 12,762 | |||
| Wealth management services | $ | 9,922 | 2,159 | 2,686 | 2,860 | 2,217 | |||
| Lending and leasing | $ | 8,783 | 2,079 | 2,224 | 2,225 | 2,255 | |||
| Bank owned life insurance | $ | 5,449 | 1,723 | 1,294 | 1,255 | 1,177 | |||
| Other | $ | 1,766 | (285) | 293 | 212 | 1,546 | |||
| Total noninterest income | $ | 115,735 | 27,643 | 29,189 | 29,636 | 29,267 | |||
| Noninterest expense: | |||||||||
| Salaries and benefits | $ | 133,785 | 33,018 | 33,914 | 33,812 | 33,041 | |||
| Occupancy and equipment | $ | 23,823 | 6,199 | 5,744 | 5,723 | 6,157 | |||
| Technology and communications | $ | 19,849 | 5,188 | 4,971 | 4,924 | 4,766 | |||
| Marketing and advertising | $ | 10,496 | 3,076 | 2,639 | 2,458 | 2,323 | |||
| Professional services | $ | 4,659 | 1,678 | 1,061 | 923 | 997 | |||
| Amortization of intangibles | $ | 8,824 | 2,218 | 2,146 | 2,209 | 2,251 | |||
| FDIC premiums | $ | 1,265 | 391 | 384 | 246 | 244 | |||
| Merger and acquisition integration expenses | $ | 2,186 | -- | -- | 139 | 2,047 | |||
| Other | $ | 23,523 | 5,787 | 5,895 | 6,160 | 5,681 | |||
| Total noninterest expense | $ | 228,410 | 57,555 | 56,754 | 56,594 | 57,507 | |||
| Income before income taxes | $ | 133,402 | 33,794 | 36,135 | 34,751 | 28,722 | |||
| Income taxes | $ | 44,964 | 10,988 | 12,395 | 11,672 | 9,909 | |||
| Net income | $ | 88,438 | 22,806 | 23,740 | 23,079 | 18,813 | |||
| Preferred stock dividend and accretion | $ | 1,184 | 1,184 | -- | -- | -- | |||
| Net income available to common stockholders | $ | 87,254 | 21,622 | 23,740 | 23,079 | 18,813 | |||
| First Niagara Financial Group, Inc. | |||||||||
| Summary of Quarterly Financial Data (unaudited) (Cont'd) | |||||||||
| 2009 | |||||||||
| Year Ended | Fourth | Third | Second | First | |||||
| December 31 | Quarter | Quarter | Quarter | Quarter | |||||
| SELECTED AVERAGE BALANCES | |||||||||
| (Amounts in thousands) | |||||||||
| Securities, at amortized cost | $ | 3,293,438 | 4,874,683 | 4,131,996 | 2,433,236 | 1,689,620 | |||
| Loans (2) | |||||||||
| Commercial: | |||||||||
| Real estate | $ | 2,739,914 | 3,026,380 | 2,748,701 | 2,616,106 | 2,563,165 | |||
| Business | $ | 1,103,103 | 1,384,790 | 1,091,131 | 975,510 | 956,523 | |||
| Specialized lending | $ | 193,999 | 211,032 | 198,944 | 183,346 | 182,305 | |||
| Total commercial loans | $ | 4,037,016 | 4,622,202 | 4,038,776 | 3,774,962 | 3,701,993 | |||
| Residential | $ | 1,831,304 | 1,706,998 | 1,778,591 | 1,875,498 | 1,967,570 | |||
| Home equity | $ | 658,826 | 685,342 | 663,220 | 649,832 | 636,325 | |||
| Other consumer | $ | 154,971 | 189,387 | 149,321 | 136,394 | 144,349 | |||
| Total loans | $ | 6,682,117 | 7,203,929 | 6,629,908 | 6,436,686 | 6,450,237 | |||
| Total interest-earning assets | $ | 10,151,188 | 12,393,205 | 10,955,269 | 8,976,840 | 8,224,796 | |||
| Goodwill and other intangibles | $ | 828,554 | 936,590 | 810,946 | 781,718 | 783,473 | |||
| Total assets | $ | 11,534,907 | 14,042,129 | 12,343,848 | 10,257,168 | 9,436,987 | |||
| Interest-bearing liabilities: | |||||||||
| Savings accounts | $ | 829,246 | 905,899 | 837,852 | 797,431 | 774,262 | |||
| Checking | $ | 680,606 | 1,042,842 | 676,786 | 510,064 | 486,663 | |||
| Money market deposits | $ | 2,696,157 | 3,576,893 | 2,783,435 | 2,323,823 | 2,083,102 | |||
| Certificates of deposit | $ | 2,290,845 | 3,112,978 | 2,113,778 | 1,914,353 | 2,012,120 | |||
| Borrowed funds | $ | 1,961,173 | 1,580,016 | 2,900,715 | 1,845,462 | 1,507,374 | |||
| Total interest-bearing liabilities | $ | 8,458,027 | 10,218,628 | 9,312,566 | 7,391,133 | 6,863,521 | |||
| Noninterest-bearing deposits | $ | 897,684 | 1,237,425 | 914,407 | 743,102 | 689,596 | |||
| Total deposits | $ | 7,394,538 | 9,876,037 | 7,326,258 | 6,288,773 | 6,045,743 | |||
| Total liabilities | $ | 9,523,932 | 11,646,451 | 10,404,030 | 8,291,365 | 7,700,851 | |||
| Net interest-earning assets | $ | 1,693,161 | 2,174,577 | 1,642,703 | 1,585,707 | 1,361,275 | |||
| Stockholders' equity | $ | 2,010,975 | 2,395,677 | 1,939,818 | 1,965,803 | 1,736,136 | |||
| Tangible equity (1) | $ | 1,182,421 | 1,459,087 | 1,128,872 | 1,184,085 | 952,663 | |||
| 2008 | |||||||||
| Year Ended | Fourth | Third | Second | First | |||||
| December 31, | Quarter | Quarter | Quarter | Quarter | |||||
| SELECTED AVERAGE BALANCES | |||||||||
| (Amounts in thousands) | |||||||||
| Securities, at amortized cost | $ | 1,327,183 | 1,398,235 | 1,265,630 | 1,335,744 | 1,309,020 | |||
| Loans (2) | |||||||||
| Commercial: | |||||||||
| Real estate | $ | 2,432,981 | 2,517,850 | 2,477,054 | 2,434,075 | 2,301,529 | |||
| Business | $ | 880,222 | 928,052 | 906,773 | 890,154 | 795,092 | |||
| Specialized lending | $ | 187,311 | 189,244 | 189,867 | 183,469 | 186,616 | |||
| Total commercial loans | $ | 3,500,514 | 3,635,146 | 3,573,694 | 3,507,698 | 3,283,237 | |||
| Residential | $ | 2,074,277 | 2,023,596 | 2,078,863 | 2,131,922 | 2,063,235 | |||
| Home equity | $ | 589,721 | 626,031 | 608,610 | 581,834 | 541,804 | |||
| Other consumer | $ | 161,096 | 153,188 | 161,074 | 173,426 | 156,784 | |||
| Total loans | $ | 6,325,608 | 6,437,961 | 6,422,241 | 6,394,880 | 6,045,060 | |||
| Total interest-earning assets | $ | 7,735,545 | 7,939,383 | 7,768,427 | 7,805,792 | 7,425,978 | |||
| Goodwill and other intangibles | $ | 794,915 | 802,275 | 804,886 | 807,034 | 765,275 | |||
| Total assets | $ | 8,963,141 | 9,148,625 | 8,991,899 | 9,115,902 | 8,593,783 | |||
| Interest-bearing liabilities: | |||||||||
| Savings accounts | $ | 790,707 | 772,359 | 802,900 | 804,834 | 782,804 | |||
| Checking | $ | 486,789 | 486,166 | 498,065 | 494,395 | 468,411 | |||
| Money market deposits | $ | 1,899,010 | 1,944,965 | 1,963,454 | 1,932,942 | 1,753,468 | |||
| Certificates of deposit | $ | 2,106,481 | 1,958,090 | 1,985,925 | 2,249,847 | 2,235,016 | |||
| Borrowed funds | $ | 1,372,314 | 1,526,141 | 1,444,923 | 1,309,847 | 1,205,857 | |||
| Total interest-bearing liabilities | $ | 6,655,301 | 6,687,721 | 6,695,267 | 6,791,865 | 6,445,556 | |||
| Noninterest-bearing deposits | $ | 687,741 | 707,300 | 726,852 | 688,403 | 627,762 | |||
| Total deposits | $ | 5,970,728 | 5,868,880 | 5,977,196 | 6,170,421 | 5,867,461 | |||
| Total liabilities | $ | 7,486,817 | 7,514,116 | 7,554,117 | 7,679,743 | 7,198,252 | |||
| Net interest-earning assets | $ | 1,080,244 | 1,251,662 | 1,073,160 | 1,013,927 | 980,422 | |||
| Stockholders' equity | $ | 1,476,324 | 1,634,510 | 1,437,782 | 1,436,159 | 1,395,531 | |||
| Tangible equity (1) | $ | 681,409 | 832,235 | 632,896 | 629,125 | 630,256 | |||
| First Niagara Financial Group, Inc. | ||||||
| Summary of Quarterly Financial Data (unaudited) (Cont'd) | ||||||
| 2009 | ||||||
| Year Ended | Fourth | Third | Second | First | ||
| December 31, | Quarter | Quarter | Quarter | Quarter | ||
| STOCK AND RELATED PER SHARE DATA | ||||||
| Earnings per share: | ||||||
| Basic | $ | 0.46 | 0.16 | 0.07 | 0.08 | 0.14 |
| Diluted | $ | 0.46 | 0.16 | 0.07 | 0.08 | 0.14 |
| Cash dividends | $ | 0.56 | 0.14 | 0.14 | 0.14 | 0.14 |
| Dividend payout ratio | 121.74% | 87.50% | 200.00% | 175.00% | 100.00% | |
| Dividend yield (annualized) | 4.03% | 3.99% | 4.50% | 4.92% | 5.21% | |
| Market price (NASDAQ: FNFG): | ||||||
| High | $ | 16.32 | 14.47 | 14.06 | 14.23 | 16.32 |
| Low | $ | 9.48 | 12.40 | 10.73 | 10.53 | 9.48 |
| Close | $ | 13.91 | 13.91 | 12.33 | 11.42 | 10.89 |
| Weighted average common shares outstanding (3): | ||||||
| Basic | 146,833 | 184,849 | 146,834 | 139,827 | 115,055 | |
| Diluted | 147,205 | 185,343 | 147,184 | 140,165 | 115,433 | |
| Common shares outstanding | 188,215 | 188,151 | 149,763 | 118,687 | ||
| Treasury shares | 6,596 | 6,659 | 6,706 | 6,732 | ||
| SELECTED RATIOS | ||||||
| Return on average assets | 0.69% | 0.82% | 0.35% | 0.81% | 0.81% | |
| Common equity: | ||||||
| Return on average equity | 3.47% | 4.79% | 2.24% | 2.47% | 4.18% | |
| Return on average tangible equity (1) | 6.06% | 7.86% | 3.84% | 4.26% | 8.40% | |
| Total equity: | ||||||
| Return on average equity | 3.95% | 4.79% | 2.24% | 4.24% | 4.38% | |
| Return on average tangible equity (1) | 6.71% | 7.86% | 3.84% | 7.05% | 7.98% | |
| Noninterest income as a percentage of net revenue | 25.7% | 23.9% | 25.1% | 26.5% | 28.2% | |
| Efficiency ratio - Consolidated | 66.6% | 63.8% | 76.2% | 62.6% | 62.5% | |
| - Banking segment (4) | 64.0% | 60.9% | 74.9% | 59.6% | 59.0% | |
| Net loan charge-offs | 33,140 | 5,774 | 14,465 | 5,971 | 6,930 | |
| Net charge-offs to average loans (annualized) | 0.50% | 0.32% | 0.87% | 0.37% | 0.44% | |
| Provision to average loans (annualized) | 0.65% | 0.61% | 0.90% | 0.55% | 0.55% | |
| Total nonperforming loans to loans | 0.94% | 0.93% | 0.81% | 0.81% | ||
| Total nonperforming assets to assets | 0.52% | 0.54% | 0.50% | 0.56% | ||
| Allowance to loans | 1.20% | 1.15% | 1.28% | 1.23% | ||
| Allowance to nonperforming loans | 128.8% | 124.4% | 157.8% | 153.3% | ||
| Texas ratio(5) | 4.95% | 4.95% | 4.76% | 5.19% | ||
| Personnel FTE | 2,816 | 2,672 | 2,034 | 1,958 | ||
| Number of branches | 171 | 170 | 113 | 113 | ||
| CAPITAL | ||||||
| First Niagara Bank: | ||||||
| Tier 1 risk based capital | 12.63% | 10.92% | 11.02% | 11.53% | ||
| Total risk based capital | 13.73% | 11.96% | 12.21% | 12.77% | ||
| Tier 1 (core) capital | 7.48% | 6.67% | 7.13% | 8.48% | ||
| Tangible capital | 7.48% | 6.67% | 7.13% | 8.48% | ||
| Consolidated: | ||||||
| Equity to assets | 16.27% | 16.86% | 16.57% | 18.17% | ||
| Tangible common equity to tangible assets (1) | 10.54% | 10.95% | 10.54% | 8.89% | ||
| Tangible equity to tangible assets (1) | 10.54% | 10.95% | 10.54% | 10.90% | ||
| Book value per share (3) | 12.84 | 12.90 | 13.11 | 15.12 | ||
| Tangible book value per share (1)(3) | 7.78 | 7.82 | 7.77 | 8.33 | ||
| 2008 | |||||||
| Year Ended | Fourth | Third | Second | First | |||
| December 31, | Quarter | Quarter | Quarter | Quarter | |||
| STOCK AND RELATED PER SHARE DATA | |||||||
| Earnings per share: | |||||||
| Basic | $ | 0.81 | 0.19 | 0.22 | 0.22 | 0.18 | |
| Diluted | $ | 0.81 | 0.19 | 0.22 | 0.22 | 0.18 | |
| Cash dividends | $ | 0.56 | 0.14 | 0.14 | 0.14 | 0.14 | |
| Dividend payout ratio | 69.14% | 73.68% | 63.64% | 63.64% | 77.78% | ||
| Dividend yield (annualized) | 3.46% | 3.44% | 3.54% | 4.38% | 4.14% | ||
| Market price (NASDAQ: FNFG): | |||||||
| High | $ | 22.38 | 16.45 | 22.38 | 15.00 | 14.15 | |
| Low | $ | 9.98 | 11.00 | 11.68 | 12.60 | 9.98 | |
| Close | $ | 16.17 | 16.17 | 15.75 | 12.86 | 13.59 | |
| Weighted average common shares outstanding (3): | |||||||
| Basic | 107,531 | 114,870 | 106,075 | 105,884 | 103,230 | ||
| Diluted | 108,174 | 115,626 | 106,795 | 106,523 | 103,641 | ||
| Common shares outstanding | 118,562 | 109,992 | 109,722 | 109,703 | |||
| Treasury shares | 6,858 | 15,427 | 15,697 | 15,718 | |||
| SELECTED RATIOS | |||||||
| Return on average assets | 0.99% | 0.99% | 1.05% | 1.02% | 0.88% | ||
| Common equity: | |||||||
| Return on average equity | 5.99% | 5.53% | 6.57% | 6.46% | 5.42% | ||
| Return on average tangible equity (1) | 13.19% | 11.41% | 14.92% | 14.75% | 12.01% | ||
| Total equity: | |||||||
| Return on average equity | 5.99% | 5.55% | 6.57% | 6.46% | 5.42% | ||
| Return on average tangible equity (1) | 12.98% | 10.90% | 14.92% | 14.75% | 12.01% | ||
| Noninterest income as a percentage of net revenue | 30.1% | 27.8% | 29.4% | 30.8% | 32.8% | ||
| Efficiency ratio - Consolidated | 59.4% | 57.9% | 57.1% | 58.8% | 64.4% | ||
| - Banking segment (4) | 55.3% | 52.6% | 52.2% | 54.2% | 60.0% | ||
| Net loan charge-offs | 17,844 | 7,871 | 3,964 | 4,055 | 1,954 | ||
| Net charge-offs to average loans (annualized) | 0.28% | 0.49% | 0.25% | 0.26% | 0.13% | ||
| Provision to average loans (annualized) | 0.36% | 0.49% | 0.40% | 0.31% | 0.21% | ||
| Total nonperforming loans to loans | 0.72% | 0.70% | 0.53% | 0.53% | |||
| Total nonperforming assets to assets | 0.52% | 0.53% | 0.39% | 0.38% | |||
| Allowance to loans | 1.20% | 1.21% | 1.17% | 1.17% | |||
| Allowance to nonperforming loans | 167.6% | 173.8% | 218.4% | 222.2% | |||
| Texas ratio(5) | 4.74% | 6.64% | 5.11% | 4.93% | |||
| Personnel FTE | 1,909 | 1,910 | 1,892 | 1,903 | |||
| Number of branches | 114 | 114 | 114 | 115 | |||
| CAPITAL | |||||||
| First Niagara Bank: | |||||||
| Tier 1 risk based capital | 11.48% | 10.05% | 10.08% | 9.84% | |||
| Total risk based capital | 12.72% | 11.30% | 11.30% | 11.06% | |||
| Tier 1 (core) capital | 8.47% | 7.58% | 7.61% | 7.29% | |||
| Tangible capital | 8.47% | 7.58% | 7.61% | 7.29% | |||
| Consolidated: | |||||||
| Equity to assets | 18.51% | 16.00% | 15.77% | 15.80% | |||
| Tangible common equity to tangible assets (1) | 8.96% | 7.77% | 7.56% | 7.56% | |||
| Tangible equity to tangible assets (1) | 11.03% | 7.77% | 7.56% | 7.56% | |||
| Book value per share (3) | 15.02 | 13.55 | 13.51 | 13.54 | |||
| Tangible book value per share (1)(3) | 8.20 | 5.99 | 5.90 | 5.90 | |||
| First Niagara Financial Group, Inc. | ||||||||
| Summary of Quarterly Financial Data (unaudited) (Cont'd) | ||||||||
| 2009 | ||||||||
| Year Ended | Fourth | Third | Second | First | ||||
| December 31 | Quarter | Quarter | Quarter | Quarter | ||||
| SELECTED AVERAGE YIELDS/RATES | ||||||||
| (Tax equivalent basis) | ||||||||
| Securities, at amortized cost | 4.00% | 4.00% | 3.80% | 3.99% | 4.59% | |||
| Loans | ||||||||
| Commercial: | ||||||||
| Real estate | 5.77% | 5.70% | 5.85% | 5.78% | 5.77% | |||
| Business | 4.39% | 4.47% | 4.16% | 4.48% | 4.43% | |||
| Specialized lending | 6.67% | 6.51% | 6.74% | 6.81% | 6.63% | |||
| Total commercial loans | 5.44% | 5.37% | 5.44% | 5.50% | 5.47% | |||
| Residential | 5.28% | 5.23% | 5.29% | 5.24% | 5.37% | |||
| Home equity | 5.01% | 4.95% | 4.97% | 5.01% | 5.14% | |||
| Other consumer | 7.93% | 8.33% | 8.10% | 7.57% | 7.58% | |||
| Total loans | 5.41% | 5.37% | 5.41% | 5.42% | 5.45% | |||
| Total interest-earning assets | 4.89% | 4.72% | 4.74% | 5.00% | 5.24% | |||
| Savings accounts | 0.23% | 0.21% | 0.24% | 0.24% | 0.24% | |||
| Interest-bearing checking | 0.15% | 0.14% | 0.14% | 0.15% | 0.16% | |||
| Money market deposits | 1.03% | 0.82% | 0.93% | 1.18% | 1.36% | |||
| Certificates of deposit | 1.87% | 1.17% | 1.68% | 2.41% | 2.68% | |||
| Borrowed funds | 2.68% | 3.77% | 1.85% | 2.57% | 3.29% | |||
| Total interest-bearing liabilities | 1.49% | 1.26% | 1.27% | 1.67% | 1.96% | |||
| Tax equivalent net interest rate spread | 3.40% | 3.46% | 3.47% | 3.33% | 3.28% | |||
| Tax equivalent net interest rate margin | 3.65% | 3.69% | 3.66% | 3.63% | 3.61% | |||
| 2008 | ||||||||
| Year Ended | Fourth | Third | Second | First | ||||
| December 31, | Quarter | Quarter | Quarter | Quarter | ||||
| SELECTED AVERAGE YIELDS/RATES | ||||||||
| (Tax equivalent basis) | ||||||||
| Securities, at amortized cost | 4.92% | 4.72% | 4.95% | 5.04% | 5.00% | |||
| Loans | ||||||||
| Commercial: | ||||||||
| Real estate | 6.27% | 6.21% | 6.15% | 6.27% | 6.48% | |||
| Business | 5.65% | 5.07% | 5.52% | 5.64% | 6.50% | |||
| Specialized lending | 7.41% | 6.85% | 7.20% | 7.72% | 7.89% | |||
| Total commercial loans | 6.18% | 5.95% | 6.05% | 6.19% | 6.56% | |||
| Residential | 5.55% | 5.54% | 5.53% | 5.52% | 5.60% | |||
| Home equity | 5.86% | 5.53% | 5.65% | 5.84% | 6.50% | |||
| Other consumer | 7.46% | 7.68% | 7.44% | 7.25% | 7.49% | |||
| Total loans | 5.97% | 5.82% | 5.88% | 5.96% | 6.25% | |||
| Total interest-earning assets | 5.78% | 5.59% | 5.72% | 5.81% | 6.03% | |||
| Savings accounts | 0.28% | 0.25% | 0.26% | 0.27% | 0.33% | |||
| Interest-bearing checking | 0.28% | 0.23% | 0.27% | 0.30% | 0.33% | |||
| Money market deposits | 2.29% | 1.91% | 2.10% | 2.27% | 2.98% | |||
| Certificates of deposit | 3.40% | 2.82% | 2.95% | 3.55% | 4.16% | |||
| Borrowed funds | 3.91% | 3.67% | 3.78% | 4.02% | 4.26% | |||
| Total interest-bearing liabilities | 2.59% | 2.26% | 2.36% | 2.65% | 3.11% | |||
| Tax equivalent net interest rate spread | 3.19% | 3.33% | 3.36% | 3.16% | 2.92% | |||
| Tax equivalent net interest rate margin | 3.55% | 3.68% | 3.68% | 3.50% | 3.33% | |||
(1) Excludes goodwill and other intangible assets. These are non-GAAP financial measures that we believe provide investors with information that is useful in understanding our financial performance and position.
(2) Includes nonaccrual loans.
(3) Excludes unallocated ESOP shares and unvested restricted stock shares.
(4) Includes operating results for the banking activities segment as defined in the Company's quarterly and annual reports.
(5) The Texas ratio is computed by dividing nonperforming assets by the sum of tangible equity and the allowance for credit losses. This is a non-GAAP financial measure that we believe provides investors with information that is useful in understanding our financial performance and position.