First Niagara Reports Third Quarter 2013 Results

        Print
| Source: First Niagara Financial Group, Inc.

Third Quarter Highlights:

  • Earnings increased 13% QOQ to $71.6 million, or $0.20 per diluted share
  • Pre-tax Pre-Provision Income Increased 6% QOQ
    -- Net interest margin increased 4 basis points from the second quarter to 3.40%
    -- Fee income declined 4% driven by lower mortgage banking revenues
  • Organic loan growth continues, with average loans up 10% QOQ
    -- Average commercial business and real estate loans increased 7% QOQ
    -- Continued momentum in indirect auto loans, which increased by $280 million
  • Noninterest-bearing checking balances increase 6% QOQ
    -- Transactional deposits averaged 35% of deposits, up from 31% a year-ago
    -- Continued investment in mobile and digital banking to match evolving consumer banking preferences
  • Strong credit quality maintained
    -- NCOs remained flat compared to the prior quarter at 0.33% of average originated loans
    -- Nonperforming originated loans decline 6% QOQ

BUFFALO, N.Y., Oct. 18, 2013 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (Nasdaq:FNFG) today reported net income available to common shareholders of $71.6 million or $0.20 per diluted share for the third quarter of 2013, highlighted by strong balance sheet growth, consistent credit quality and positive operating leverage.

"We delivered another quarter of strong earnings despite the challenges presented by the macro-economic and competitive environment," said Gary M. Crosby, Interim President and Chief Executive Officer. "We are very focused on maximizing returns and expect to continue to deliver industry-leading loan growth while maintaining our high underwriting standards. We will continue to diligently invest in opportunities that drive revenue production, achieve operating leverage and enhance risk mitigation capabilities to position us well for the future."

Third Quarter Results

In the third quarter of 2013, First Niagara reported net income available to common shareholders of $71.6 million, or $0.20 per diluted share. In the third quarter of 2012, First Niagara reported net income available to common shareholders of $50.8 million, or $0.14 per diluted share, that included $29.4 million in pre-tax acquisition and restructuring expenses incurred primarily in connection with the closing of the HSBC branch acquisition in May 2012. For the second quarter of 2013, net income to common shareholders was $63.6 million, or $0.18 per diluted share.

Balance sheet growth remained strong as average loans increased 10% annualized compared to the prior quarter. Average commercial business and real estate loans increased 7% annualized over the prior quarter driven by a 9% increase in commercial real estate loans. Average consumer loans increased 14% annualized driven by continued growth in indirect auto loan balances, partially offset by a decline in residential mortgage loans. Average transaction deposit balances, which include interest-bearing and noninterest bearing checking accounts, increased an annualized 2% over the prior quarter and currently represent 35% of the company's deposit balances, up from 31% a year ago.

Operating revenues increased 1% in the third quarter of 2013 compared to the prior quarter. Net interest income increased 3% in the third quarter compared to the prior quarter. Net interest margin was 3.40%, as compared to 3.36% in the second quarter of 2013. Noninterest income decreased $4.1 million or 4% from the prior quarter primarily due to lower mortgage banking revenues.

The provision for loan losses on originated loans totaled $25.4 million in the third quarter of 2013, including $12.5 million to support loan growth and $12.9 million to cover net charge-offs during the quarter. At September 30, 2013, nonperforming originated loans comprised 0.89% of originated loans, which equaled a 13 basis point improvement from the prior quarter. Net charge-offs equaled 33 basis points of average originated loans, consistent with the second quarter.

In the third quarter of 2013, the company continued to generate positive operating leverage, as operating revenues increased 1% and operating expenses decreased 2% relative to the second quarter.

Reported Results (GAAP) Q3 2013 Q2 2013 Q3 2012
Net interest income $277.5 $269.4 $269.6
Provision for credit losses 27.6 25.2 22.2
Noninterest income 91.4 95.5 102.2
Noninterest expense 231.2 235.2 266.5
Net income 79.1 71.1 58.4
Preferred stock dividend 7.5 7.5 7.5
Net income available to common shareholders 71.6 63.6 50.8
Weighted average diluted shares outstanding 350.9 350.4 349.4
Earnings per diluted share $0.20 $0.18 $0.14
       
All amounts in millions except earnings per diluted share. 

"During the third quarter, we continued to generate strong loan growth despite an intensifying competitive landscape, while adhering to our prudent underwriting standards, " said Gregory W. Norwood, Chief Financial Officer. "Net interest income benefitted from the continuation of strong balance sheet growth as well as certain favorable adjustments in our collateralized mortgage obligations book related to the rapid increase in mortgage rates which, in turn, negatively impacted mortgage banking revenues."

Loans

Average total loans increased 10% annualized from the prior quarter, driven by strong growth in the company's commercial lending businesses, particularly commercial real estate (CRE), and as well as sustained momentum in the company's indirect auto business.

Average CRE loans increased 9% annualized to $7.6 billion compared to the second quarter of 2013. Commercial & Industrial (C&I) loans averaged $5.2 billion, representing a 4% annualized increase over the prior quarter. Average commercial loans in the company's New England and Eastern Pennsylvania markets increased at double-digit annualized growth rates of 13% and 10%, respectively.

Average indirect auto loan balances increased $280 million to $1.2 billion. During the third quarter, indirect auto originations totaled $379 million at an average customer FICO score of 753 and yielded 3.1%, net of dealer reserve. Average residential real estate loans declined by $32 million, or 4% annualized reflecting elevated prepayment levels. Home equity balances increased 3% annualized from the prior quarter.

Deposits

The company continued to focus its efforts to grow its core customer base, re-position its account mix and lower its deposit costs. Average transaction deposit balances, which include interest-bearing and noninterest bearing checking accounts, increased an annualized 2% over the prior quarter and currently represent 35% of the company's deposit balances, up from 31% a year ago. The average cost of interest-bearing deposits of 0.23% was unchanged from the prior quarter.

Average noninterest-bearing checking deposits increased 6% annualized compared to the prior quarter, driven by seasonal strength in commercial account balances. Interest-bearing checking balances averaged $4.5 billion and decreased an annualized 2% from the second quarter.

Money market and time deposit balances declined 9% and 8% annualized, respectively, driven by the company's continued pricing actions.

In response to changing consumer banking behaviors, First Niagara continues to invest in enhancing its online, mobile and telephonic banking capabilities for retail and small business customers, while continuing to transform its branch network and in-branch experience.

Net Interest Income

Third quarter 2013 net interest income increased 3% from the prior quarter to $278 million and was driven by a 3% annualized increase in average earning assets together with a four basis points improvement in the net interest margin to 3.40%. Growth in average earning assets reflected continued strong loan growth which was moderated by lower investment securities balances. Average investment securities declined 9% or $264 million from the prior quarter reflecting the planned rotation of such securities into more profitable loans.

The four basis point increase in net interest margin in the third quarter of 2013 reflected the benefits of reinvestment of cash flows from lower-yielding investment securities into higher yielding loans and securities as well as lower premium amortization on the company's residential mortgage backed securities (RMBS) portfolio. These benefits were partially offset by continued compression of loan yields from prepayments and reinvestments at current market rates.

In the third quarter, premium amortization on the RMBS portfolio was $6 million, net of a $1.8 million retrospective adjustment to reflect prepayment speeds that were slower than the company's previous assessment. The premium amortization on the RMBS portfolio in the second quarter of 2013 was $11 million.

Credit Quality

At September 30, 2013, the allowance for loan losses was $198.0 million, compared to $183.7 million at June 30, 2013. Nonperforming assets to total assets were 0.53%, up only modestly from the prior quarter. A decrease in nonperforming originated loans was offset by transfer of three acquired loans that were previously designated as loans 90 days past due but accruing to other real estate owned (OREO) assets.

Information for both the originated and acquired portfolios follows.

  Q3 2013 Q2 2013
$ in millions Originated Acquired Total Originated Acquired Total
Provision for loan losses*  $ 25.4  $ 1.8  $ 27.2  $ 23.9  $ 0.9  $ 24.8
Net charge-offs 12.9 0.1 13.0 12.2 0.9 13.1
NCOs/ Avg Loans 0.33% 0.01% 0.25% 0.33% 0.06% 0.26%
Total loans**  $ 16,212  $ 5,007  $ 21,089  $ 15,102  $ 5,581  $ 20,543
             
(*) Excludes provision for unfunded commitments of $0.4 million each in 3Q13 and 2Q13
(**) Acquired loans before associated credit discount; see accompanying tables for further information

Originated loans

The provision for loan losses on originated loans totaled $25.4 million, compared to $23.9 million in the prior quarter. This provision included $12.5 million to support sequential originated loan growth of $1.1 billion, compared to $11.7 million in the prior quarter that supported $1.0 billion of originated loan growth. Net charge-offs equaled $12.9 million or 33 basis points of average originated loans in the third quarter of 2013, consistent with the second quarter.

At September 30, 2013, nonperforming originated loans comprised 0.89% of originated loans, compared to 1.02% at June 30, 2013. Nonperforming originated loan balances declined 6% from the prior quarter in part driven by paydowns.

At September 30, 2013, the allowance for loan losses on originated loans totaled $195.0 million or 1.20% of such loans, compared to $182.5 million or 1.21% of loans at June 30, 2013.

Acquired loans

The provision for losses on acquired loans totaled $1.8 million, up from $0.9 million in the prior quarter. Net charge-offs on those portfolios totaled $0.1 million during the quarter, compared to $0.9 million in the prior period. At September 30, 2013, the allowance for loan losses on acquired loans totaled $3.0 million, compared to $1.3 million at June 30, 2013. Acquired nonperforming loans totaled $30.4 million, compared to $27.6 million at the end of the prior quarter. At September 30, 2013, remaining credit marks available to absorb losses on a pool-by-pool basis totaled $129 million.

Fee Income

Third quarter 2013 noninterest income of $91.4 million decreased 4% or $4.1 million compared to the prior quarter driven exclusively by weakness in mortgage banking gain-on-sale revenues which was partially offset by increases in most other fee income categories.

Mortgage banking revenues declined $4.6 million, or 67%, from the second quarter, driven by decreases in locked application volumes and gain-on-sale margins. Wealth management revenue increased 2% from the second quarter reflecting the continued demand in the market place for fixed annuity products. Deposit service charges increased 2% from the prior quarter and were driven by a seasonal increase in NSF incidence as well as sustained higher collection rates. Insurance commissions and merchant and card fees both increased modestly from the second quarter. Other income decreased $1.4 million from the second quarter.

Noninterest Expense

Third quarter noninterest expenses were $231.2 million, 2% lower than the prior quarter. Salaries and benefit expenses declined by $1.3 million from the prior quarter driven primarily by a decrease in revenue-dependent variable compensation expenses. Occupancy and equipment expenses declined by $1.9 million from the second quarter due in large part to expenses related to consolidation of branches in the prior period. The amortization of intangibles decreased $3.1 million from the prior quarter primarily reflecting the decline in amortization of the HSBC transaction-related core deposit intangible.

In the third quarter of 2013, the efficiency ratio improved to 62.7% from 64.4% in the prior quarter and reflected the positive operating leverage achieved.

Capital

At September 30, 2013, the company's estimated consolidated Total Risk Based capital and Tier 1 Common Risk Based capital ratios were 11.4% and 7.7% respectively. The company remains well above current regulatory guidelines for well-capitalized institutions.

About First Niagara

First Niagara, through its wholly owned subsidiary, First Niagara Bank, N.A., is a multi-state community-oriented bank with approximately 420 branches, $37 billion in assets, $27 billion in deposits, and approximately 5,800 employees providing financial services to individuals, families and businesses across New York, Pennsylvania, Connecticut and Massachusetts. For more information, visit www.firstniagara.com.

Investor Call

A conference call will be held at 10:00 a.m. Eastern Time on Friday, October 18, 2013 to discuss the company's financial results. Those wishing to participate in the call may dial toll-free 1-888-968-3512 with the passcode: FNFG. Presentation slides will be used during the earnings conference call and are available under the investor relations tab of our website at www.firstniagara.com. A replay of the call will be available until November 1, 2013 by dialing 1-866-451-8971, passcode: 532337.

Non-GAAP Measures - This news release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). The company believes that non-GAAP financial measures provide a meaningful comparison of the underlying operational performance of the company, and facilitate investors' assessments of business and performance trends in comparison to others in the financial services industry. In addition, the company believes the exclusion of these non-operating items enables management to perform a more effective evaluation and comparison of the company's results and to assess performance in relation to the company's ongoing operations. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP disclosures are used in this news release, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document.

Forward-Looking Statements - This press release contains forward-looking statements with respect to the financial condition and results of operations of First Niagara Financial Group, Inc. including, without limitations, statements relating to the earnings outlook of the company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans that could result from an economic downturn; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with an increase in commercial real estate and business loans and non-performing loans.

First Niagara Financial Group, Inc.                
Income Statement Highlights -- Reported Basis                
(in thousands, except per share amounts)                
                 
  2013  2012 Nine months ended
   Third 
Quarter 
Second 
Quarter 
First
Quarter 
Fourth
Quarter 
Third 
Quarter 
Second
Quarter 
September 30,
2013
September 30, 
2012
                 
Interest income:                
Loans and leases  $ 214,746  $ 209,970  $ 206,640  $ 212,035  $ 211,767  $ 200,725  $ 631,356  $ 601,877
Investment securities and other   91,996  88,110  88,961  71,564  90,101  99,116  269,067  290,612
Total interest income   306,742  298,080  295,601  283,599  301,868  299,841  900,423  892,489
                 
Interest expense:                
Deposits   12,931  12,967  14,277  16,902  18,358  16,391  40,175  49,747
Borrowings   16,271  15,670  15,194  14,411  13,905  24,437  47,135  71,753
Total interest expense   29,202  28,637  29,471  31,313  32,263  40,828  87,310  121,500
                 
Net interest income  277,540  269,443  266,130  252,286  269,605  259,013  813,113  770,989
Provision for credit losses  27,600  25,200  20,200  22,000  22,200  28,100  73,000  70,300
Net interest income after provision  249,940  244,243  245,930  230,286  247,405  230,913  740,113  700,689
                 
Noninterest income:                
Deposit service charges  27,115  26,482  24,800  26,345  26,422  21,433  78,397  64,892
Insurance commissions  17,854  17,692  16,355  15,497  18,764  17,072  51,901  52,669
Merchant and card fees  12,464  12,380  11,298  11,945  12,014  9,271  36,142  26,813
Wealth management services  15,189  14,945  12,845  12,000  11,069  9,207  42,979  29,315
Mortgage banking  2,268  6,882  6,424  8,060  10,974  7,174  15,574  23,797
Capital markets income  5,058  5,002  6,031  7,098  6,381  6,831  16,091  19,751
Lending and leasing   4,886  4,534  3,906  3,739  3,730  4,245  13,326  11,098
Bank owned life insurance   3,725  3,321  3,467  3,021  3,449  3,848  10,513  10,684
Other income  2,863  4,308  4,186  4,116  9,400  16,517  11,357  28,690
Total noninterest income  91,422  95,546  89,312  91,821  102,203  95,598  276,280  267,709
                 
Noninterest expense:                
Salaries and benefits  115,034  116,305  115,790  111,026  115,484  104,507  347,129  316,468
Occupancy and equipment  26,582  28,506  28,045  27,609  25,694  24,089  83,133  71,800
Technology and communications  28,999  29,603  27,113  28,257  28,110  24,434  85,715  72,257
Marketing and advertising  5,822  5,450  4,346  9,292  8,954  6,676  15,618  22,393
Professional services  9,820  9,782  9,603  11,163  11,193  9,263  29,205  29,351
Amortization of intangibles  7,702  10,850  14,119  14,224  14,506  9,839  32,671  30,811
FDIC premiums  9,351  9,348  8,901  9,158  8,850  10,552  27,600  25,535
Merger and acquisition integration expenses  --   --   --   3,678  29,404  131,460  --   173,834
Restructuring charges  --   --   --   --   --   3,750  --   6,453
Other expense  27,883  25,326  29,749  24,377  24,347  21,069  82,958  63,457
Total noninterest expense  231,193  235,170  237,666  238,784  266,542  345,639  704,029  812,359
                 
Income (loss) before income tax  110,169  104,619  97,576  83,323  83,066  (19,128)   312,364  156,039
Income tax expense (benefit)  31,026  33,485  30,291  22,226  24,682  (8,204)   94,802  48,714
Net income (loss)  79,143  71,134  67,285  61,097  58,384  (10,924)   217,562  107,325
Preferred stock dividend  7,547  7,547  7,547  7,547   7,547   7,547   22,641   20,209 
Net income (loss) available to common stockholders  $ 71,596  $ 63,587  $ 59,738  $ 53,550  $ 50,837  $ (18,471)  $ 194,921  $ 87,116
                 
Financial Ratios:                
Earnings (loss) per basic share  $ 0.20  $ 0.18  $ 0.17  $ 0.15  $ 0.15  $ (0.05)  $ 0.55  $ 0.25
Earnings (loss) per diluted share  0.20  0.18  0.17  0.15  0.14  (0.05)  0.55  0.25
Weighted average shares outstanding - basic(1)  349,653  349,542  349,278  349,071  349,001  348,941  349,492  348,956
Weighted average shares outstanding - diluted(1)  350,896  350,384  349,999  349,663  349,371  348,941  350,368  349,248
Net revenue(2)  $ 368,962  $ 364,989  $ 355,442  $ 344,107  $ 371,808  $ 354,611  $ 1,089,393  $ 1,038,698
Noninterest income as a percentage of net revenue(2) 24.78% 26.18% 25.13% 26.68% 27.49% 26.96% 25.36% 25.77%
Pre-tax, pre-provision income(3)  $ 137,769  $ 129,819  $ 117,776  $ 105,323  $ 105,266  $ 8,972  $ 385,364  $ 226,339
Pre-tax, pre-provision income per diluted share(3)  $ 0.39  $ 0.37  $ 0.34  $ 0.30  $ 0.30  $ 0.03  $ 1.10  $ 0.65
Pre-tax, pre-provision return on average assets(3) 1.47% 1.41% 1.30% 1.15% 1.19% 0.10% 1.39% 0.86%
Net interest margin(4) 3.40% 3.36% 3.39% 3.22% 3.54% 3.26% 3.39% 3.30%
Interest yield on average loans(4) 4.14% 4.19% 4.25% 4.39% 4.47% 4.59% 4.19% 4.56%
Rate paid on interest-bearing liabilities 0.43% 0.43% 0.44% 0.48% 0.51% 0.61% 0.44% 0.63%
Efficiency ratio 62.66% 64.43% 66.86% 69.39% 71.69% 97.47% 64.63% 78.21%
Expenses as a percentage of average loans and deposits 1.94% 1.98% 2.01% 2.03% 2.29% 3.37% 1.98% 2.64%
Effective tax rate 28.2% 32.0% 31.0% 26.7% 29.7% 42.9% 30.3% 31.2%
Return on average assets(5)  0.85 %  0.77 %  0.74 % 0.67% 0.66%  (0.12)% 0.79% 0.41%
Return on average equity(5)  6.37 %  5.72 %  5.50 % 4.92% 4.77%  (0.90)% 5.86% 2.95%
Return on average tangible equity(3)(5)  13.20 %  11.75 %  11.62 % 10.45% 10.34%  (1.64)% 12.19% 5.40%
Return on average common equity  6.18 %  5.48 %  5.24 % 4.62% 4.46%  (1.64)% 5.64% 2.57%
Return on average tangible common equity(3)  13.92 %  12.21 %  12.05 % 10.72% 10.60%  (3.18)% 12.73% 5.02%
                 
(1) Share count excludes unallocated ESOP shares and unvested restricted stock shares.              
(2) Net revenue is comprised of net interest income and noninterest income.                
(3) The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail.
(4) Yields and rates calculated on a tax equivalent basis.                
(5) Return used to calculate ratio excludes preferred stock dividend.                
             
First Niagara Financial Group, Inc.            
Period End Balance Sheet            
(in thousands)            
             
  2013 2012
  September 30, June 30, March 31, December 31,  September 30, June 30,
             
             
Cash and cash equivalents  $ 558,086  $ 552,210  $ 424,176  $ 430,862  $ 447,087  $ 488,227
Investment securities:            
Available for sale  7,609,676  7,916,353  7,876,160  10,993,605  10,579,970  9,937,271
Held to maturity  3,841,700  3,856,960  4,218,687  1,299,806  1,387,763  1,463,872
FHLB and FRB common stock  437,534  429,740  401,373  420,277  373,311  329,555
Total investment securities  11,888,910  12,203,053  12,496,220  12,713,688  12,341,044  11,730,698
Loans held for sale  80,468  118,104  126,389  154,745  117,375  101,596
Loans and leases:             
Commercial:            
Real estate  7,697,407  7,482,375  7,295,544  7,093,193  6,835,971  6,710,009
Business  5,204,672  5,165,606  5,044,738  4,953,323  4,682,154  4,514,537
Total commercial loans  12,902,079  12,647,981  12,340,282  12,046,516  11,518,125  11,224,546
Consumer:            
Residential real estate  3,519,233  3,558,274  3,614,912  3,761,567  3,870,756  4,037,045
Home equity  2,706,603  2,670,672  2,646,645  2,651,891  2,661,429  2,683,236
Indirect auto  1,339,449  1,049,763  818,401  601,456  419,258  185,774
Credit cards  311,600  303,455  298,310  314,973  308,387  304,368
Other consumer  310,107  313,037  316,669  333,609  328,571  328,547
Total consumer loans  8,186,992  7,895,201  7,694,937  7,663,496  7,588,401  7,538,970
Total loans and leases  21,089,071  20,543,182  20,035,219  19,710,012  19,106,526  18,763,516
Allowance for loan losses  197,953  183,708  172,002  162,522  149,933  138,516
Loans and leases, net  20,891,118  20,359,474  19,863,217  19,547,490  18,956,593  18,625,000
Bank owned life insurance  413,555  410,182  407,419  404,321  401,211  397,739
Goodwill and other intangibles  2,549,931  2,557,560  2,567,681  2,617,810  2,626,625  2,631,605
Other assets  958,473  949,144  959,459  937,316  983,999  1,130,891
Total assets  $ 37,340,541  $ 37,149,727  $ 36,844,561  $ 36,806,232  $ 35,873,934  $ 35,105,756
             
Deposits:            
Savings accounts  $ 3,695,221  $ 3,878,053  $ 3,915,836  $ 3,887,587  $ 3,941,528  $ 4,103,773
Interest-bearing checking  4,637,807  4,499,963  4,534,444  4,450,970  4,090,322  3,887,568
Money market deposits  9,905,341  10,013,996  10,493,243  10,581,137  10,801,280  10,919,766
Noninterest-bearing deposits  4,968,501  4,845,835  4,803,835  4,643,580  4,658,374  4,774,764
Certificates of deposit  3,762,132  3,911,989  3,985,702  4,113,257  4,206,192  4,211,116
 Total deposits  26,969,002  27,149,836  27,733,060  27,676,531  27,697,696  27,896,987
             
Short-term borrowings  4,169,416  3,698,279  2,928,929  2,983,718  1,995,610  958,044
Long-term borrowings  732,547  732,598  732,510  732,425  732,339  732,263
Other liabilities  531,379  666,270  503,389  487,000  532,868  700,249
Total liabilities  32,402,344  32,246,983  31,897,888  31,879,674  30,958,513  30,287,543
Preferred stockholders' equity  338,002  338,002  338,002  338,002  338,002  338,002
Common stockholders' equity  4,600,195  4,564,742  4,608,671  4,588,556  4,577,419  4,480,211
Total stockholders' equity  4,938,197  4,902,744  4,946,673  4,926,558  4,915,421  4,818,213
Total liabilities and stockholders' equity  $ 37,340,541  $ 37,149,727  $ 36,844,561  $ 36,806,232  $ 35,873,934  $ 35,105,756
             
Selected balance sheet information:            
Total interest-earning assets(1)  $ 33,039,023  $ 32,906,363  $ 32,524,313  $ 32,321,964  $ 31,316,470  $ 30,403,035
Total interest-bearing liabilities  26,902,465  26,734,878  26,590,664  26,749,094  25,767,271  24,812,530
Net interest-earning assets  $ 6,136,558  $ 6,171,485  $ 5,933,649  $ 5,572,870  $ 5,549,199  $ 5,590,505
             
Tangible common equity(2)  $ 2,050,264  $ 2,007,182  $ 2,040,990  $ 1,970,746  $ 1,950,794  1,848,606
Unrealized gain on available for sale securities, net of tax(3)  76,686  83,898  160,942  206,733  204,347  133,430
             
Total core deposits  $ 23,206,870  $ 23,237,847  $ 23,747,358  $ 23,563,274  $ 23,491,504  $ 23,685,871
             
Originated loans(4)  $ 16,211,505  $ 15,102,336  $ 14,100,190  $ 13,372,357  $ 12,232,568  $ 11,392,158
Acquired loans(5)  5,006,753  5,581,651  6,083,912  6,513,636  7,085,839  7,600,213
Credit related discount on acquired loans(6)  (129,187)  (140,805)  (148,883)  (175,981)  (211,881)  (228,855)
Total Loans  $ 21,089,071  $ 20,543,182  $ 20,035,219  $ 19,710,012  $ 19,106,526  $ 18,763,516
             
(1) Includes interest bearing cash and cash equivalents, investment securities at amortized cost, loans held for sale, and total loans and leases.    
(2) The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail.
(3) Excludes unamortized unrealized gains recorded in accumulated other comprehensive income related to available for sale securities transferred to held to maturity.  
(4) Originated loans represent total loans excluding acquired loans.            
(5) Represents the carrying value of acquired loans plus the principal not expected to be collected.          
(6) Represent principal on acquired loans not expected to be collected.            
                               
First Niagara Financial Group, Inc.                              
Average Balance Sheet and Related Tax Equivalent Yields & Rates                              
(in millions)                              
  For the three months ended Nine months ended
  September 30, 2013 June 30, 2013 September 30, 2012 September 30, 2013 September 30, 2012
  Average Balances Interest(1) Yields and Rates(1) Average 
Balances 
Interest(1) Yields and Rates(1) Average Balances Interest(1)  Yields and Rates(1)  Average Balances Interest(1)  Yields and Rates(1)  Average Balances Interest(1) Yields and Rates(1)(2)
                               
Interest-earning assets:                              
Loans and leases(3)                              
Commercial:                              
Real estate  $ 7,551  $ 80 4.16%  $ 7,376  $ 79 4.22%  $ 6,783  $ 80 4.60%  $ 7,370  $ 235 4.21%  $ 6,529  $ 239 4.81%
Business  5,163  48  3.64   5,112  47  3.66   4,609  45  3.81   5,092  142  3.68   4,274  129  3.96 
Total commercial loans  12,714  128  3.95   12,488  126  3.99   11,392  125  4.28   12,462  377  3.99   10,803  368  4.48 
Consumer:                              
Residential real estate  3,538  35  3.91   3,570  35  3.94   3,962  40  4.03   3,599  107  3.95   3,957  123  4.13 
Home equity  2,683  28  4.17   2,661  28  4.25   2,672  30  4.42   2,664  84  4.24   2,415  80  4.42 
Indirect auto  1,207  9  3.09   927  7  3.18   301  3  3.64   950  23  3.17   131  4  3.86 
Credit cards  309  9  12.02   302  8  10.96   308  9  11.31   305  25  11.14   165  14  11.31 
Other consumer  313  7  8.48   313  7  8.42   329  7  8.80   318  20  8.36   285  17  8.07 
Total consumer loans  8,050  88  4.35   7,773  86  4.41   7,572  88  4.64   7,836  259  4.42   6,953  237  4.56 
Total loans and leases  20,764  216  4.14   20,261  212  4.19   18,964  213  4.47   20,298  636  4.19   17,756  605  4.56 
Residential MBS(2)  5,515  37  2.68   5,496  33  2.40   5,677  40  2.81   5,500  104  2.53   7,729  166  2.86 
Commercial MBS  1,810  17  3.68   1,881  16  3.44   1,895  19  3.93   1,868  51  3.63   1,822  54  3.95 
Other investment securities (4)  4,620  40  3.47   4,833  41  3.37   4,002  33  3.35   4,758  119  3.34   3,446  87  3.39 
Total securities, at amortized cost(2)  11,945  94  3.14   12,210  90  2.94   11,574  92  3.18   12,126  274  3.02   12,997  307  3.15 
Money market and other investments  157  1  2.27   171  1  1.85   201  1  1.39   189  2  1.74   274  2  1.05 
Total interest-earning assets(2)  32,866  $ 311 3.75%  32,642  $ 302 3.71%  30,739  $ 306 3.96%  32,613  $ 913 3.74%  31,027  $ 915 3.94%
Goodwill and other intangibles  2,554      2,561      2,627      2,575      2,213    
Other noninterest-earning assets  1,673      1,780      1,938      1,774      1,737    
                               
Total assets   $ 37,093      $ 36,983      $ 35,304      $ 36,962      $ 34,977    
                               
Interest-bearing liabilities:                               
Deposits                              
Savings accounts  $ 3,793  $ 1 0.09%  $ 3,897  $ 1 0.11%  $ 4,026  $ 2 0.20%  $ 3,861  $ 3 0.10%  $ 3,300  $ 3 0.14%
Interest-bearing checking  4,483  --   0.04   4,504  --   0.04   3,871  1  0.06   4,456  1  0.04   3,066  2  0.08 
Money market deposits   9,959  5  0.20   10,178  5  0.20   10,899  8  0.29   10,257  16  0.21   9,071  19  0.28 
Certificates of deposit   3,824  7  0.69   3,902  6  0.66   4,083  8  0.75   3,935  20  0.67   3,977  25  0.85 
Total interest bearing deposits  22,059  13 0.23%  22,481  13 0.23%  22,879  19 0.32%  22,509  40 0.24%  19,414  50 0.34%
Borrowings                              
Short-term borrowings  4,014  4 0.41%  3,536  4 0.41%  1,666  1 0.36%  3,570  11 0.41%  3,442  15 0.56%
Long-term borrowings  733  12  6.55   733  12  6.62   732  12  6.74   732  36  6.63   2,825  57  2.70 
Total borrowings   4,747  16  1.36   4,269  16  1.47   2,398  13  2.31   4,302  47  1.46   6,267  72  1.53 
Total interest-bearing liabilities   26,806  $ 29 0.43%  26,750  $ 29 0.43%  25,277  $ 32 0.51%  26,811  $ 87 0.44%  25,681  $ 122 0.63%
Noninterest-bearing deposits   4,787      4,711      4,618      4,657      3,838    
Other noninterest-bearing liabilities   567      533      536      534      590    
Total liabilities   32,160      31,994      30,431      32,002      30,109    
Total stockholders' equity  4,933      4,989      4,873      4,960      4,868    
Total liabilities and stockholders' equity  $ 37,093      $ 36,983      $ 35,304      $ 36,962      $ 34,977    
                               
Net interest income (FTE)    $ 282      $ 274      $ 274      $ 826      $ 793  
Taxable Equivalent Adjustment(1)    4      5      4      13      14  
                               
 Total core deposits   $ 23,022  $ 6 0.11%  $ 23,290  $ 6 0.11%  $ 23,414  $ 11 0.18%  $ 23,231  $ 20 0.12%  $ 19,275  $ 24 0.17%
 Total deposits   26,846  13 0.19%  27,192  13 0.19%  27,497  19 0.27%  27,166  40 0.20%  23,252  50 0.29%
                               
Tax equivalent net interest rate spread(2)     3.32%     3.28%     3.45%     3.30%     3.31%
Tax equivalent net interest rate margin(2)     3.40%     3.36%     3.54%     3.39%     3.42%
                               
(1) Tax equivalent interest income is calculated using a 35% tax rate.                              
(2) Amounts for the nine months ended September 30, 2012 exclude accelerated CMO adjustments of $8 million. The yields, including these adjustments, are:              
  Nine months ended
September 30, 2012
                   
Residential MBS 2.72%                          
Total securities, at amortized cost 3.05%                          
Total interest-earning assets 3.90%                          
Tax equivalent net interest rate spread 3.27%                          
Tax equivalent net interest rate margin 3.38%                          
(3) Includes nonaccrual loans.                              
(4) 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)                
  2013 2012 Nine months ended
   Third 
Quarter 
 Second 
Quarter
 First 
Quarter
 Fourth 
Quarter 
 Third 
Quarter 
 Second 
Quarter 
 September 30, 
2013
 September 30, 
2012
                 
Beginning balance  $ 183,708  $ 172,002  $ 162,522  $ 149,933  $ 138,516  $ 126,746  $ 162,522  $ 120,100
Net loan (charge-offs) recoveries:              
Commercial real estate  $ 1,013  $ (2,817)  $ (2,121)  $ (1,935)  $ (1,791)  $ (2,384)  $ (3,925)  $ (10,169)
Commercial business  (9,694)  (7,175)  (4,902)  (3,385)  (6,077)  (10,958)  (21,771)  (21,178)
Residential real estate  (137)  (291)  (427)  (658)  (396)  (155)  (855)  (1,671)
Home equity  (322)  (905)  (613)  (673)  (401)  (1,536)  (1,840)  (3,098)
Other consumer  (3,815)  (1,906)  (2,257)  (2,285)  (1,406)  (805)  (7,978)  (3,047)
Total net loan charge-offs  $ (12,955)  $ (13,094)  $ (10,320)  $ (8,936)  $ (10,071)  $ (15,838)  $ (36,369)  $ (39,163)
Provision for loan losses  27,200  24,800  19,800  21,525  21,800  27,803  71,800  69,503
Allowance related to loans sold  --   --   --   --   (312)  (195)  --  (507)
Ending balance  $ 197,953  $ 183,708  $ 172,002  $ 162,522  $ 149,933  $ 138,516  $ 197,953  $ 149,933
                 
Supplemental information                
Allowance to loans 0.94% 0.89% 0.86% 0.82% 0.78% 0.74% 0.94% 0.78%
Allowance for originated loans to originated loans(1) 1.20% 1.21% 1.21% 1.20% 1.20% 1.19% 1.20% 1.20%
                 
Net charge-offs (recoveries) to average loans (annualized)            
Commercial real estate  (0.05)% 0.15% 0.12% 0.11% 0.11% 0.15% 0.07% 0.21%
Commercial business  0.75 % 0.56% 0.39% 0.28% 0.53% 1.02% 0.57% 0.66%
Total commercial loans  0.27 % 0.32% 0.23% 0.18% 0.28% 0.49% 0.27% 0.39%
Residential real estate  0.02 % 0.03% 0.05% 0.07% 0.04% 0.02% 0.03% 0.06%
Home equity  0.05 % 0.14% 0.09% 0.10% 0.06% 0.25% 0.09% 0.17%
Other consumer  0.83 % 0.49% 0.67% 0.79% 0.60% 0.61% 0.68% 0.70%
Total consumer loans  0.22 % 0.16% 0.17% 0.19% 0.12% 0.15% 0.18% 0.15%
Total loans  0.25 % 0.26% 0.21% 0.18% 0.21% 0.36% 0.24% 0.29%
                 
Net charge-offs (recoveries) of originated loans to average originated loans (annualized)(1)        
Commercial real estate  (0.07)% 0.14% 0.10% 0.07% 0.12% 0.18% 0.05% 0.15%
Commercial business  0.83 % 0.64% 0.45% 0.33% 0.64% 1.25% 0.64% 0.82%
Total commercial loans  0.33 % 0.36% 0.26% 0.19% 0.36% 0.66% 0.32% 0.45%
Residential real estate  0.03 % 0.07% 0.10% 0.15% 0.09% 0.04% 0.06% 0.13%
Home equity  0.09 % 0.26% 0.19% 0.21% 0.13% 0.51% 0.18% 0.35%
Other consumer  0.84 % 0.51% 0.64% 0.94% 0.59% 0.81% 0.68% 0.76%
Total consumer loans  0.33 % 0.27% 0.28% 0.35% 0.18% 0.28% 0.29% 0.27%
Total loans  0.33 % 0.33% 0.27% 0.24% 0.30% 0.55% 0.31% 0.40%
                 
Nonperforming loans:                
Originated(1):                
Commercial real estate  $ 51,302  $ 59,624  $ 49,953  $ 50,848  $ 46,413  $ 46,881  $ 51,302  $ 46,413
Commercial business  35,854  44,658  47,523  47,066  37,375  30,714  35,854  37,375
Residential real estate  31,312  29,667  28,455  27,192  21,377  23,058  31,312  21,377
Home equity  15,709  14,601  14,270  14,233  8,084  8,119  15,709  8,084
Other consumer  10,667  6,094  5,444  3,737  938  926  10,667  938
Total originated nonperforming loans  144,844  154,644  145,645  143,076  114,187  109,698  144,844  114,187
Total acquired nonperforming loans(2)  30,388  27,556  27,678  29,648  28,193  19,374  30,388  28,193
Total nonperforming loans  175,232  182,200  173,323  172,724  142,380  129,072  175,232  142,380
Real estate owned  24,262  8,144  10,816  10,114  9,669  10,632  24,262  9,669
Total nonperforming assets  $ 199,494  $ 190,344  $ 184,139  $ 182,838  $ 152,049  $ 139,704  $ 199,494  $ 152,049
                 
Accruing troubled debt restructurings (TDR)  $ 69,877  $ 69,892  $ 64,311  $ 46,280  $ 55,732  $ 42,140  $ 69,877  $ 55,732
Loans 90 days past due still accruing(3)  136,248  167,560  172,062  171,568  145,323  125,668  136,248  145,323
Total classified loans(4)  648,235  701,104  720,197  708,468  693,006  732,762  648,235  693,006
Total criticized loans(5)  $ 977,798  $ 1,012,305  $ 1,044,874  $ 1,002,659  $ 990,670  $ 1,030,471  $ 977,798  $ 990,670
                 
Total nonperforming loans to loans 0.83% 0.89% 0.87% 0.88% 0.75% 0.69% 0.83% 0.75%
Total nonperforming originated loans to originated loans(1) 0.89% 1.02% 1.03% 1.07% 0.93% 0.96% 0.89% 0.93%
Total nonperforming assets to loans and real estate owned 0.94% 0.93% 0.92% 0.93% 0.80% 0.74% 0.94% 0.80%
Total nonperforming assets to assets 0.53% 0.51% 0.50% 0.50% 0.42% 0.40% 0.53% 0.42%
Allowance to nonperforming loans 113.0% 100.8% 99.2% 94.1% 105.3% 107.3% 113.0% 105.3%
                 
Originated loans(1)  $ 16,211,505  $ 15,102,336  $ 14,100,190  $ 13,372,357  $ 12,232,568  $ 11,392,158  $ 16,211,505  $ 12,232,568
Acquired loans(6)  5,006,753  5,581,651  6,083,912  6,513,636  7,085,839  7,600,213  5,006,753  7,085,839
Credit related discount on acquired loans(7)  (129,187)   (140,805)   (148,883)   (175,981)   (211,881)   (228,855)   (129,187)   (211,881) 
Total Loans  $ 21,089,071  $ 20,543,182  $ 20,035,219  $ 19,710,012  $ 19,106,526  $ 18,763,516  $ 21,089,071  $ 19,106,526
                 
(1) Originated loans represent total loans excluding acquired loans.           
(2) Nonperforming acquired loans include certain lines of credit that are considered nonaccruing.         
(3) Includes acquired loans that were originally recorded at fair value upon acquisition, credit card loans, and loans that have matured which are in the process of collection.
(4) Includes consumer loans, which are considered classified when they are 90 days or more past due. Classified loans include substandard, doubtful, and loss, which are consistent with regulatory definitions, and as described in Item 1, "Business", under the heading "Asset Qulaity Review" in our Annual Report on 10-K for the year ended December 31, 2012.
(5) Criticized loans includes consumer loans when they are 90 days or more past due. Criticized loans include special mention, substandard, doubtful, and loss.      
(6) Represents the carrying value of acquired loans plus the principal not expected to be collected.        
(7) Represent principal on acquired loans not expected to be collected.          
             
First Niagara Financial Group, Inc.            
Key Statistics            
(Share counts in thousands)            
             
  2013 2012
  September 30, June 30, March 31, December 31,  September 30, June 30,
             
First Niagara Financial Group, Inc capital ratios:          
Tier 1 risk based capital 9.45% 9.41% 9.45% 9.29% 9.51% 9.40%
Tier 1 common capital(1) 7.72% 7.65% 7.64% 7.45% 7.59% 7.41%
Total risk based capital 11.40% 11.35% 11.38% 11.23% 11.48% 11.37%
Leverage 7.14% 7.01% 6.92% 6.75% 6.83% 6.32%
Equity to assets 13.22% 13.20% 13.43% 13.39% 13.70% 13.72%
Tangible common equity to tangible assets(1) 5.89% 5.80% 5.95% 5.77% 5.87% 5.69%
Total risk weighted assets(2)  $ 26,078  $ 25,564  $ 24,949  $ 24,379  $ 23,403  $ 22,699
             
First Niagara Bank, N.A capital ratios:          
Tier 1 risk based capital 10.08% 10.08% 10.15% 9.94% 10.19% 9.63%
Total risk based capital 10.89% 10.85% 10.89% 10.66% 10.88% 10.57%
Leverage 7.61% 7.50% 7.43% 7.23% 7.32% 6.48%
Total risk weighted assets(2)  $ 26,038  $ 25,520  $ 24,933  $ 24,379  $ 23,390  $ 22,699
             
Number of branches  422  422  427  430  432  452
Full time equivalent employees  5,788  5,779  5,875  5,927  6,036  6,103
             
Share information and per share metrics:          
Common shares outstanding  353,973  353,932  353,008  352,621  352,632  352,665
Preferred shares outstanding  14,000  14,000  14,000  14,000  14,000  14,000
Treasury shares  12,029  12,070  12,994  13,381  13,370  13,337
Market price (NASDAQ: FNFG):  $ 10.37  $ 10.07  $ 8.86  $ 7.93  $ 8.07  $ 7.65
Book value per common share(3)  13.15  13.06  13.19  13.15  13.11  12.84
Tangible book value per common share(1)(3)  5.86  5.74  5.84  5.65  5.59  5.30
Price/Book 78.86% 77.11% 67.17% 60.30% 61.56% 59.58%
Price/Tangible book(1) 176.96% 175.44% 151.71% 140.35% 144.36% 144.34%
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 40.00% 44.44% 47.06% 53.33% 53.33% N/M
Dividend yield (annualized) 3.06% 3.19% 3.66% 4.01% 3.94% 4.21%
             
N/M Not meaningful            
(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) Represents an estimate of total risk weighted assets as of September 30, 2013. All preceding quarters represent actual calculated balances.
(3) Share count excludes unallocated ESOP shares and unvested restricted stock shares.    
                 
First Niagara Financial Group, Inc.                
Appendix A - Non-GAAP Reconciliation                
(in thousands, except per share amounts)                
                 
  2013 2012 Nine months ended
   Third 
Quarter 
  Second 
Quarter 
 First 
Quarter 
  Fourth 
Quarter 
 Third 
Quarter 
 Second 
Quarter 
September 30, 
2013
September 30, 
2012
Financial ratios computed on an operating basis(1):                
Earnings per basic share  $ 0.20  $ 0.18  $ 0.17  $ 0.19  $ 0.19  $ 0.19  $ 0.55  $ 0.56
Earnings per diluted share  0.20  0.18  0.17  0.19  0.19  0.19  0.55  0.56
Weighted average shares outstanding - basic(2)  349,653  349,542  349,278  349,071  349,001  348,941  349,492  348,956
Weighted average shares outstanding - diluted(2)  350,896  350,384  349,999  349,663  349,371  348,941  350,368  349,248
Noninterest income as a percentage of net revenue(3) 24.78% 26.18% 25.13% 25.48% 26.43% 22.96% 25.36% 24.03%
Pre-tax, pre-provision income  137,769  129,819  117,776  125,281  129,333  136,645  385,364  393,752
Pre-tax, pre-provision income per diluted share  0.39  0.37  0.34  0.36  0.37  0.39  1.10  1.13
Pre-tax, pre-provision return on average assets 1.47% 1.41% 1.30% 1.37% 1.46% 1.51% 1.39% 1.50%
Net interest margin(4) 3.40% 3.36% 3.39% 3.42% 3.54% 3.37% 3.39% 3.42%
Interest yield on average loans(4) 4.14% 4.19% 4.25% 4.39% 4.47% 4.59% 4.19% 4.56%
Rate paid on interest-bearing liabilities(4) 0.43% 0.43% 0.44% 0.48% 0.51% 0.61% 0.44% 0.63%
Efficiency ratio 62.66% 64.43% 66.86% 65.24% 64.71% 60.63% 64.63% 61.62%
Effective tax rate 28.2% 32.0% 31.0% 27.0% 30.9% 33.5% 30.3% 33.1%
Return on average assets 0.85% 0.77% 0.74% 0.83% 0.83% 0.80% 0.79% 0.83%
Return on average equity 6.37% 5.72% 5.50% 6.06% 6.04% 5.95% 5.86% 5.93%
Return on average tangible equity(5) 13.20% 11.75% 11.62% 12.89% 13.11% 10.86% 12.19% 10.88%
Return on average common equity 6.18% 5.48% 5.24% 5.86% 5.83% 5.72% 5.64% 5.78%
Return on average tangible common equity(6) 13.92% 12.21% 12.05% 13.57% 13.86% 11.13% 12.73% 11.30%
                 
Reconciliation of net interest income on operating basis to reported net interest income(1):                
Total net interest income on operating basis (Non-GAAP)  $ 277,540  $ 269,443  $ 266,130  $ 268,566  $ 269,605  $ 267,371  $ 813,113  $ 779,347
Additional premium amortization on securities portfolio  --   --   --   (16,280)  --  (8,358)  --   (8,358)
Total reported net interest income (GAAP)  277,540  269,443  266,130  252,286  269,605  259,013  813,113  770,989
                 
Reconciliation of noninterest income on operating basis to reported noninterest income(1):                
Total noninterest income on operating basis (Non-GAAP)  $ 91,422  $ 95,546  $ 89,312  $ 91,821  $ 96,866  $ 79,703  $ 276,280  $ 246,477
Gain on securities portfolio repositioning  --   --   --   --   5,337  15,895  --   21,232
Total reported noninterest income (GAAP)  91,422  95,546  89,312  91,821  102,203  95,598  276,280  267,709
                 
Reconciliation of noninterest expense on operating basis to reported noninterest expense(1):                
Total noninterest expense on operating basis (Non-GAAP)  $ 231,193  $ 235,170  $ 237,666  $ 235,106  $ 237,138  $ 210,429  $ 704,029  $ 632,072
Merger and acquisition integration expenses  --   --   --   3,678  29,404  131,460  --   173,834
Restructuring charges  --   --   --   --   --   3,750  --   6,453
Total reported noninterest expense (GAAP)  $ 231,193  $ 235,170  $ 237,666  $ 238,784  $ 266,542  $ 345,639  $ 704,029  $ 812,359
                 
Reconciliation of net operating income to net income(1):                
Net operating income (Non-GAAP)  $ 79,143  $ 71,134  $ 67,285  $ 75,358  $ 74,027  $ 72,188  $ 217,562  $ 216,268
Nonoperating income and expenses, net of tax:                
Additional premium amortization on securities portfolio  --   --   --   11,633  --  5,558  --   5,558
Gain on securities portfolio repositioning  --   --   --   --  (3,469)  (10,331)  --   (13,800)
Merger and acquisition integration expenses  --   --   --   2,628  19,112  85,448  --   112,991
Restructuring charges  --   --   --   --   --   2,437  --   4,194
Total nonoperating expenses, net of tax  --   --   --   14,261  15,643  83,112  --   108,943
Net income (GAAP)  $ 79,143  $ 71,134  $ 67,285  $ 61,097  $ 58,384  $ (10,924)  $ 217,562  $ 107,325
                 
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)  $ 71,596  $ 63,587  $ 59,738  $ 67,811  $ 66,480  $ 64,641  $ 194,921  $ 196,059
Nonoperating income and expenses, net of tax:                
Additional premium amortization on securities portfolio  --   --   --   11,633  --   5,558  --   5,558
Gain on securities portfolio repositioning  --   --   --   --   (3,469)  (10,331)  --   (13,800)
Merger and acquisition integration expenses  --   --   --   2,628  19,112  85,448  --   112,991
Restructuring charges  --   --   --   --   --   2,437  --   4,194
Total nonoperating income and expenses, net of tax  --   --   --   14,261  15,643  83,112  --   108,943
Net income available to common stockholders (GAAP)  $ 71,596  $ 63,587  $ 59,738  $ 53,550  $ 50,837  $ (18,471)  $ 194,921  $ 87,116
                 
Computation of pre-tax,pre-provision income:                
Net interest income  $ 277,540  $ 269,443  $ 266,130  $ 252,286  $ 269,605  $ 259,013  $ 813,113  $ 770,989
Noninterest income  91,422   95,546   89,312   91,821   102,203   95,598   276,280   267,709 
Noninterest expense  (231,193)  (235,170)  (237,666)  (238,784)  (266,542)  (345,639)  (704,029)  (812,359)
Pre-tax, pre-provision income (GAAP)  137,769  129,819  117,776  105,323  105,266  8,972  385,364  226,339
Add back: non-operating premium amortization  --   --   --   16,280  --   8,358  --   8,358
Add back: non-operating noninterest expenses (1)  --   --   --   3,678  29,404  135,210  --   180,287
Less: non-operating noninterest income (1)  --   --   --   --   (5,337)  (15,895)  --   (21,232)
Pre-tax, pre-provision income (Non-GAAP)(1)  $ 137,769  $ 129,819  $ 117,776  $ 125,281  $ 129,333  $ 136,645  $ 385,364  $ 393,752
                 
(1) Net interest income, noninterest income and expense on an operating basis, net operating income, and pre-tax, pre-provision income on an operating basis are non-GAAP measures that we believe provide meaningful comparisons of our underlying operational performance and facilitates investors' assessments of business and performance trends in comparison to others in the financial services industry. In addition, we believe exclusion of these nonoperating items enables management to perform a more effective evaluation and comparison of our results and to assess performance in relation to our ongoing operations.
(2) Share count excludes unallocated ESOP shares and unvested restricted stock shares.                
(3) 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)                
                 
  2013 2012 Nine months ended
  Third 
Quarter 
 Second 
Quarter 
First 
Quarter 
Fourth 
Quarter 
Third
Quarter 
Second
Quarter 
September 30,
2013
September 30, 
2012
Computation of Ending Tangible Common Equity:                
Total stockholders' equity  $ 4,938,197  $ 4,902,744  $ 4,946,673  $ 4,926,558  $ 4,915,421  $ 4,818,213  $ 4,938,197  $ 4,928,097
Less: Goodwill and other intangibles  (2,549,931)   (2,557,560)   (2,567,681)   (2,617,810)   (2,626,625)   (2,631,605)   (2,549,931)   (2,617,809) 
Less: Preferred stockholders' equity  (338,002)   (338,002)   (338,002)   (338,002)   (338,002)   (338,002)   (338,002)  (338,002)
Tangible common equity  $ 2,050,264  $ 2,007,182  $ 2,040,990  $ 1,970,746  $ 1,950,794  $ 1,848,606  $ 2,050,264  $ 1,972,286
                 
Computation of Average Tangible Equity:                
Total stockholders' equity  $ 4,932,949  $ 4,989,006  $ 4,958,402  $ 4,945,132  $ 4,872,605  $ 4,879,791  $ 4,960,026  $ 4,887,071
Less: Goodwill and other intangibles  (2,553,647)   (2,561,507)   (2,609,409)   (2,619,322)   (2,626,666)   (2,206,682)   (2,574,650)   (2,315,013) 
Tangible equity  $ 2,379,302  $ 2,427,499  $ 2,348,993  $ 2,325,810  $ 2,245,939  $ 2,673,109  $ 2,385,376  $ 2,572,058
                 
Computation of Average Tangible Common Equity:                
Total stockholders' equity  $ 4,932,949  $ 4,989,006  $ 4,958,402  $ 4,945,132  $ 4,872,605  $ 4,879,791  $ 4,960,026  $ 4,887,071
Less: Goodwill and other intangibles  (2,553,647)   (2,561,507)   (2,609,409)   (2,619,322)   (2,626,666)   (2,206,682)   (2,574,650)   (2,315,013) 
Less: Preferred stockholders' equity  (338,002)   (338,002)   (338,002)   (338,002)  (338,002)  (338,002)  (338,002)   (338,002)
Tangible common equity  $ 2,041,300  $ 2,089,497  $ 2,010,991  $ 1,987,808  $ 1,907,937  $ 2,335,107  $ 2,047,374  $ 2,234,056
                 
Computation of Tier 1 Common Capital:                
Tier 1 capital  $ 2,464,801  $ 2,406,473  $ 2,356,763  $ 2,264,679  $ 2,225,121  $ 2,128,702  $ 2,464,629  $ 2,264,679
Less: Qualifying restricted core capital elements  (112,667)   (112,449)   (112,236)   (112,025)  (111,820)  (111,630)  (112,667)   (112,025) 
Less: Perpetual non-cumulative preferred stock  (338,002)   (338,002)   (338,002)   (338,002)  (338,002)  (338,002)  (338,002)   (338,002)
Tier 1 common capital (Non-GAAP)  $ 2,014,132  $ 1,956,022  $ 1,906,525  $ 1,814,652  $ 1,775,299  $ 1,679,070  $ 2,013,960  $ 1,814,652
First Niagara Contacts
Investors:
Ram Shankar
Senior Vice President, Investor Relations
(716) 270-8623
 

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