First Niagara Financial Group Inc. (FNFG, Financial) filed Quarterly Report for the period ended 2009-03-31.
First Niagara Financial Group Inc. is a multi-bank holding company and is the parent of First Niagara Bank Cortland Savings Bank and Cayuga Bank. First Niagara Financial Group Inc. has a market cap of $1.49 billion; its shares were traded at around $12.59 with a P/E ratio of 16 and P/S ratio of 2.7. The dividend yield of First Niagara Financial Group Inc. stocks is 4.5%. First Niagara Financial Group Inc. had an annual average earning growth of 19% over the past 10 years. GuruFocus rated First Niagara Financial Group Inc. the business predictability rank of 3.5-star.
Total assets increased $256.6 million from $9.3 billion at December 31, 2008 to $9.6 billion at March 31, 2009, primarily due to the $227.8 increase in our securities available for sale portfolio resulting from the deployment of the proceeds from our October 2008 follow-on stock offering and issuance of preferred stock under the Capital Purchase Program (CPP) in November of 2008. In addition, we noted the following balance trends during 2009:
During the quarter ended March 31, 2009 the balance of our securities portfolio increased $227.8 million to $1.8 billion from $1.6 billion at December 31, 2008, which was primarily attributable to the deployment of the proceeds from our October 2008 follow-on stock offering and our November 2008 sale of preferred stock to the Treasury. The majority of the funds were invested in mortgage-backed securities guaranteed by the Federal National Mortgage Association, Federal Home Loan Mortgage Association, or Government National Mortgage Association with an expected average life ranging from two to three years. Our investment portfolio remains well positioned to provide a stable source of cash flow with a weighted average estimated remaining life of 3.4 years at March 31, 2009.
During the quarter ended March 31, 2009, we experienced a $13.6 million improvement, net of deferred taxes, in the value of our available for sale investment securities, resulting in an unrealized gain of $852 thousand, net of deferred taxes, at quarter end. Generally, the value of our investment securities fluctuates in response to changes in market interest rates, changes in credit spreads, or a temporary lack of liquidity in the market. The unrealized gain represents the difference between the estimated fair value and the amortized cost of our securities, net of deferred taxes. At March 31, 2009, our pre-tax net gains were $1.4 million with an amortized cost of $1.8 billion. We have assessed the securities available for sale that were in an unrealized loss position at March 31, 2009 and determined that the decline in fair value is temporary. In making this determination we considered the period of time the securities were in a loss position, the percentage decline in comparison to the securities amortized cost, the financial condition of the guarantor, the delinquency or default rates of underlying collateral, and our ability and intent to hold these securities until their fair value recovers to their amortized cost. At this point we deem any unrealized losses to be temporary, as we have the ability and intent to hold our investment securities currently in an unrealized loss position to recovery.
During the first three months of 2009, we experienced a 19% annualized increase in our total deposit balances primarily as the result of seasonal and new account growth in money market and interest-bearing checking accounts, indicative of customer preferences for short term products and our focus on growing these profitable relationships. As a result, core deposits now comprise 68% of total deposits, up from 66% at December 31, 2008 and 62% in the same quarter in 2008. Our municipal deposit balances increased $174.6 million to $859.0 million at March 31, 2009, from $684.4 million at December 31, 2008 due to seasonal inflow of tax payment collections as well as new account growth.
Wholesale borrowings decreased $93.3 million during the first three months of 2009 to $1.4 billion as we were able to use the increase in our deposits to pay down $90.4 million of short-term borrowings. Multiple reductions in the federal funds interest rate during 2008 resulted in a 97 basis point decline in our borrowing costs during the first quarter of 2009 as compared to the same period in 2008.
Read the The complete ReportFNFG is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Irving Kahn of Kahn Brothers & Company Inc., John Keeley of Keeley Fund Management.
First Niagara Financial Group Inc. is a multi-bank holding company and is the parent of First Niagara Bank Cortland Savings Bank and Cayuga Bank. First Niagara Financial Group Inc. has a market cap of $1.49 billion; its shares were traded at around $12.59 with a P/E ratio of 16 and P/S ratio of 2.7. The dividend yield of First Niagara Financial Group Inc. stocks is 4.5%. First Niagara Financial Group Inc. had an annual average earning growth of 19% over the past 10 years. GuruFocus rated First Niagara Financial Group Inc. the business predictability rank of 3.5-star.
Highlight of Business Operations:
Net income for the three months ended March 31, 2009 remained consistent with the same period in 2008. Our diluted earnings per share for the first quarter of 2009 was $0.14 compared to $0.18 per share for the first quarter of 2008, which reflects the impact of $2.7 million of preferred stock dividends and discount accretion related to preferred stock issued to the U.S. Department of the Treasury (Treasury) during the fourth quarter of 2008.Total assets increased $256.6 million from $9.3 billion at December 31, 2008 to $9.6 billion at March 31, 2009, primarily due to the $227.8 increase in our securities available for sale portfolio resulting from the deployment of the proceeds from our October 2008 follow-on stock offering and issuance of preferred stock under the Capital Purchase Program (CPP) in November of 2008. In addition, we noted the following balance trends during 2009:
During the quarter ended March 31, 2009 the balance of our securities portfolio increased $227.8 million to $1.8 billion from $1.6 billion at December 31, 2008, which was primarily attributable to the deployment of the proceeds from our October 2008 follow-on stock offering and our November 2008 sale of preferred stock to the Treasury. The majority of the funds were invested in mortgage-backed securities guaranteed by the Federal National Mortgage Association, Federal Home Loan Mortgage Association, or Government National Mortgage Association with an expected average life ranging from two to three years. Our investment portfolio remains well positioned to provide a stable source of cash flow with a weighted average estimated remaining life of 3.4 years at March 31, 2009.
During the quarter ended March 31, 2009, we experienced a $13.6 million improvement, net of deferred taxes, in the value of our available for sale investment securities, resulting in an unrealized gain of $852 thousand, net of deferred taxes, at quarter end. Generally, the value of our investment securities fluctuates in response to changes in market interest rates, changes in credit spreads, or a temporary lack of liquidity in the market. The unrealized gain represents the difference between the estimated fair value and the amortized cost of our securities, net of deferred taxes. At March 31, 2009, our pre-tax net gains were $1.4 million with an amortized cost of $1.8 billion. We have assessed the securities available for sale that were in an unrealized loss position at March 31, 2009 and determined that the decline in fair value is temporary. In making this determination we considered the period of time the securities were in a loss position, the percentage decline in comparison to the securities amortized cost, the financial condition of the guarantor, the delinquency or default rates of underlying collateral, and our ability and intent to hold these securities until their fair value recovers to their amortized cost. At this point we deem any unrealized losses to be temporary, as we have the ability and intent to hold our investment securities currently in an unrealized loss position to recovery.
During the first three months of 2009, we experienced a 19% annualized increase in our total deposit balances primarily as the result of seasonal and new account growth in money market and interest-bearing checking accounts, indicative of customer preferences for short term products and our focus on growing these profitable relationships. As a result, core deposits now comprise 68% of total deposits, up from 66% at December 31, 2008 and 62% in the same quarter in 2008. Our municipal deposit balances increased $174.6 million to $859.0 million at March 31, 2009, from $684.4 million at December 31, 2008 due to seasonal inflow of tax payment collections as well as new account growth.
Wholesale borrowings decreased $93.3 million during the first three months of 2009 to $1.4 billion as we were able to use the increase in our deposits to pay down $90.4 million of short-term borrowings. Multiple reductions in the federal funds interest rate during 2008 resulted in a 97 basis point decline in our borrowing costs during the first quarter of 2009 as compared to the same period in 2008.
Read the The complete ReportFNFG is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Irving Kahn of Kahn Brothers & Company Inc., John Keeley of Keeley Fund Management.
