First Niagara Financial Group Inc. (FNFG, Financial) filed Quarterly Report for the period ended 2009-09-30.
First Niagara Financial Group Inc. has a market cap of $2.3 billion; its shares were traded at around $12.58 with a P/E ratio of 20.29 and P/S ratio of 4.14. The dividend yield of First Niagara Financial Group Inc. stocks is 4.45%. 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.
On September 4, 2009, we acquired 57 branch locations from National City Bank (NatCity) in Western Pennsylvania, including cash of $3.1 billion, performing loans with a fair value of approximately $717.3 million, core deposits intangible of $29.8 million, and deposits with a fair value of $4.0 billion resulting in goodwill of $130.1 million.
Net income for the nine months ended September 30, 2009 was $50.5 million compared to $65.6 million for the nine months ended September 30, 2008. Our diluted earnings per common share for the first nine months of 2009 was $0.29 compared to $0.62 per share for the first nine months of 2008, reflecting $27.5 million of merger and acquisition integration expenses related to our acquisition of the NatCity branch locations and anticipated merger with Harleysville; the additional common shares issued in our April 2009 and September 2009 follow-on stock offerings; $3.7 million of preferred stock dividends; and $8.3 million in preferred stock 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 (U.S. Treasury). In addition, our results were impacted by an $11.5 million increase in federal deposit insurance premiums, which includes a $5.4 million special assessment, and modest credit quality deterioration due to the current economic environment.
Net income for the quarter ended September 30, 2009 was $10.9 million compared to $23.7 million for the quarter ended September 30, 2008. Our diluted earnings per share for the current quarter was $0.07 compared to $0.22 per share for the same period in 2008, reflecting $23.4 million of merger and acquisition integration expenses related to our merger and acquisition activity and the impact of the additional shares issued in our April 2009 and September 2009 follow-on stock offerings as well as increased federal deposit insurance premiums.
Excluding the $657.3 million in commercial loans we acquired from NatCity, we experienced a $280.0 million, or 10% annualized, increase in our higher yielding commercial loan portfolio during the first nine months of 2009 as a result of our continued strategic focus on the portfolio and decreased competition as larger banks and nonbank entities continue to face liquidity and capital issues. While we originated $441.0 million in new residential loans, our residential real estate loan portfolio decreased by 18% annualized as ongoing consumer preference is for long-term fixed rate products which we generally do not maintain in our portfolio. Despite the continued recessionary economy, we experienced 8% annualized growth in our relationship based home equity lending portfolio. In addition, we experienced a 14% decrease in our other consumer loans portfolio, excluding the $60.1 million in consumer loans we acquired from NatCity, as we continue to deemphasize certain types of consumer loans, including indirect auto loans.
The $2.1 billion increase in our investment securities available for sale portfolio to $3.7 billion at September 30, 2009 from December 31, 2008 was primarily attributable to our investment of a portion of the $3.1 billion of cash received as a result of our third quarter 2009 acquisition of 57 branch locations from NatCity. In addition, our portfolio increased due to the investment of a portion 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 four 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 2.8 years at September 30, 2009. Given the length of time it will take to redeploy these investments into loans and other investments, we determined that a portion of the investment securities purchased during the second and third quarters will be held to maturity. As such, collateralized mortgage obligations with an amortized cost of $1.1 billion and a weighted average life of 3.1 years, were classified as held to maturity at September 30, 2009.
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. has a market cap of $2.3 billion; its shares were traded at around $12.58 with a P/E ratio of 20.29 and P/S ratio of 4.14. The dividend yield of First Niagara Financial Group Inc. stocks is 4.45%. 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:
On July 26, 2009, First Niagara Financial Group, Inc. and Harleysville National Corporation (Harleysville), the holding company for Harleysville National Bank, jointly announced a definitive merger agreement under which Harleysville will merge into the Company in a transaction valued at approximately $237.0 million. At September 30, 2009, Harleysville had total assets of approximately $5.2 billion, including $3.3 billion in loans, and deposits of approximately $3.9 billion in 83 bank branches across nine Southeastern Pennsylvania counties. The merger is expected to be completed in the first quarter of 2010 and is subject to the approvals of Harleysville stockholders and the applicable regulatory agencies.On September 4, 2009, we acquired 57 branch locations from National City Bank (NatCity) in Western Pennsylvania, including cash of $3.1 billion, performing loans with a fair value of approximately $717.3 million, core deposits intangible of $29.8 million, and deposits with a fair value of $4.0 billion resulting in goodwill of $130.1 million.
Net income for the nine months ended September 30, 2009 was $50.5 million compared to $65.6 million for the nine months ended September 30, 2008. Our diluted earnings per common share for the first nine months of 2009 was $0.29 compared to $0.62 per share for the first nine months of 2008, reflecting $27.5 million of merger and acquisition integration expenses related to our acquisition of the NatCity branch locations and anticipated merger with Harleysville; the additional common shares issued in our April 2009 and September 2009 follow-on stock offerings; $3.7 million of preferred stock dividends; and $8.3 million in preferred stock 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 (U.S. Treasury). In addition, our results were impacted by an $11.5 million increase in federal deposit insurance premiums, which includes a $5.4 million special assessment, and modest credit quality deterioration due to the current economic environment.
Net income for the quarter ended September 30, 2009 was $10.9 million compared to $23.7 million for the quarter ended September 30, 2008. Our diluted earnings per share for the current quarter was $0.07 compared to $0.22 per share for the same period in 2008, reflecting $23.4 million of merger and acquisition integration expenses related to our merger and acquisition activity and the impact of the additional shares issued in our April 2009 and September 2009 follow-on stock offerings as well as increased federal deposit insurance premiums.
Excluding the $657.3 million in commercial loans we acquired from NatCity, we experienced a $280.0 million, or 10% annualized, increase in our higher yielding commercial loan portfolio during the first nine months of 2009 as a result of our continued strategic focus on the portfolio and decreased competition as larger banks and nonbank entities continue to face liquidity and capital issues. While we originated $441.0 million in new residential loans, our residential real estate loan portfolio decreased by 18% annualized as ongoing consumer preference is for long-term fixed rate products which we generally do not maintain in our portfolio. Despite the continued recessionary economy, we experienced 8% annualized growth in our relationship based home equity lending portfolio. In addition, we experienced a 14% decrease in our other consumer loans portfolio, excluding the $60.1 million in consumer loans we acquired from NatCity, as we continue to deemphasize certain types of consumer loans, including indirect auto loans.
The $2.1 billion increase in our investment securities available for sale portfolio to $3.7 billion at September 30, 2009 from December 31, 2008 was primarily attributable to our investment of a portion of the $3.1 billion of cash received as a result of our third quarter 2009 acquisition of 57 branch locations from NatCity. In addition, our portfolio increased due to the investment of a portion 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 four 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 2.8 years at September 30, 2009. Given the length of time it will take to redeploy these investments into loans and other investments, we determined that a portion of the investment securities purchased during the second and third quarters will be held to maturity. As such, collateralized mortgage obligations with an amortized cost of $1.1 billion and a weighted average life of 3.1 years, were classified as held to maturity at September 30, 2009.
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.
