First Niagara Financial Group Inc. (FNFG, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $2.06 billion; its shares were traded at around $13.76 with a P/E ratio of 21.2 and P/S ratio of 3.6. The dividend yield of First Niagara Financial Group Inc. stocks is 4.2%. 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.
Net income for the quarter ended June 30, 2009 was $20.8 million as compared to $23.1 million for the quarter ended June 30, 2008. Our diluted earnings per share for the current quarter was $0.08 as compared to $0.22 per share for the same period in 2008, reflecting the additional shares issued in our April 2009 follow-on stock offering, $1.4 million in preferred stock dividends, and $7.9 million in discount accretion, including the acceleration related to the preferred stock redemption.
Total assets increased $2.3 billion from $9.3 billion at December 31, 2008 to $11.6 billion at June 30, 2009, primarily due to the $2.2 billion increase in our investment securities portfolio. This increase resulted primarily from our strategy of pre-buying investment securities in anticipation of the $3.2 billion in cash we expect to receive in our third quarter acquisition of 57 branches from National City Bank (National City) and the deployment of the proceeds from our April 2009 follow-on stock offering. In addition, we noted the following balance trends during 2009:
The $1.8 billion increase in our investment securities available for sale portfolio to $3.3 billion at June 30, 2009 from December 31, 2008 was primarily attributable to our pre-buying strategy whereby we are utilizing low cost, short-term borrowings to purchase earning assets in anticipation of receiving approximately $3.2 billion of cash as a result of our third quarter branch acquisition which includes $4.2 billion of deposits. In addition, our portfolio increased due to the deployment of the proceeds from our October 2008 and April 2009 follow-on stock offerings. 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 securities available for sale portfolio remains well positioned to provide a stable source of cash flow with a weighted average estimated remaining life of 2.9 years at June 30, 2009.
During the quarter ended June 30, 2009, we experienced a $2.2 million improvement, net of deferred taxes, in the value of our available for sale investment securities, resulting in an unrealized gain of $3.1 million, 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 June 30, 2009, our pre-tax net gains were $5.1 million with an amortized cost of $3.3 billion. We have assessed the securities available for sale that were in an unrealized loss position at June 30, 2009 and determined that the decline in fair value is temporary, except with respect to one collateralized debt obligation for which we recorded an other than temporary impairment charge of $162 thousand. 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, and the delinquency or default rates of underlying collateral. In addition we do not intend to sell these securities and it is not more likely than not that we will be required to sell these securities before the recovery of their cost basis, which may be at maturity.
During the first half of 2009, we experienced a 10% annualized increase in our total deposit balances primarily as the result of low cost core deposit account growth, indicative of customer preferences for short term products and our focus on growing these profitable relationships. As a result, core deposits now comprise 72% of total deposits, up from 66% at December 31, 2008 and 65% in the same quarter in 2008. Our municipal deposit balances increased $139.9 million from December 31, 2008 to $824.3 million at June 30, 2009, and increased $151.5 million from June 30, 2008 due to our focused efforts in growing this low cost funding source.
Read the The complete ReportFNFG is in the portfolios of 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 $2.06 billion; its shares were traded at around $13.76 with a P/E ratio of 21.2 and P/S ratio of 3.6. The dividend yield of First Niagara Financial Group Inc. stocks is 4.2%. 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 six months ended June 30, 2009 was $39.5 million as compared to $41.9 million for the six months ended June 30, 2008. Our diluted earnings per common share for the first six months of 2009 was $0.22 compared to $0.40 per share for the first six months of 2008, reflecting the additional common shares issued in our April 2009 follow-on stock offering, $3.7 million of preferred stock dividends, and $8.3 million in discount accretion, including $7.7 million of accelerated accretion related to the full redemption in May 2009 of our preferred stock issued to the U.S. Department of the Treasury (Treasury).Net income for the quarter ended June 30, 2009 was $20.8 million as compared to $23.1 million for the quarter ended June 30, 2008. Our diluted earnings per share for the current quarter was $0.08 as compared to $0.22 per share for the same period in 2008, reflecting the additional shares issued in our April 2009 follow-on stock offering, $1.4 million in preferred stock dividends, and $7.9 million in discount accretion, including the acceleration related to the preferred stock redemption.
Total assets increased $2.3 billion from $9.3 billion at December 31, 2008 to $11.6 billion at June 30, 2009, primarily due to the $2.2 billion increase in our investment securities portfolio. This increase resulted primarily from our strategy of pre-buying investment securities in anticipation of the $3.2 billion in cash we expect to receive in our third quarter acquisition of 57 branches from National City Bank (National City) and the deployment of the proceeds from our April 2009 follow-on stock offering. In addition, we noted the following balance trends during 2009:
The $1.8 billion increase in our investment securities available for sale portfolio to $3.3 billion at June 30, 2009 from December 31, 2008 was primarily attributable to our pre-buying strategy whereby we are utilizing low cost, short-term borrowings to purchase earning assets in anticipation of receiving approximately $3.2 billion of cash as a result of our third quarter branch acquisition which includes $4.2 billion of deposits. In addition, our portfolio increased due to the deployment of the proceeds from our October 2008 and April 2009 follow-on stock offerings. 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 securities available for sale portfolio remains well positioned to provide a stable source of cash flow with a weighted average estimated remaining life of 2.9 years at June 30, 2009.
During the quarter ended June 30, 2009, we experienced a $2.2 million improvement, net of deferred taxes, in the value of our available for sale investment securities, resulting in an unrealized gain of $3.1 million, 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 June 30, 2009, our pre-tax net gains were $5.1 million with an amortized cost of $3.3 billion. We have assessed the securities available for sale that were in an unrealized loss position at June 30, 2009 and determined that the decline in fair value is temporary, except with respect to one collateralized debt obligation for which we recorded an other than temporary impairment charge of $162 thousand. 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, and the delinquency or default rates of underlying collateral. In addition we do not intend to sell these securities and it is not more likely than not that we will be required to sell these securities before the recovery of their cost basis, which may be at maturity.
During the first half of 2009, we experienced a 10% annualized increase in our total deposit balances primarily as the result of low cost core deposit account growth, indicative of customer preferences for short term products and our focus on growing these profitable relationships. As a result, core deposits now comprise 72% of total deposits, up from 66% at December 31, 2008 and 65% in the same quarter in 2008. Our municipal deposit balances increased $139.9 million from December 31, 2008 to $824.3 million at June 30, 2009, and increased $151.5 million from June 30, 2008 due to our focused efforts in growing this low cost funding source.
Read the The complete ReportFNFG is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., John Keeley of Keeley Fund Management.
