First Niagara Financial Group Inc. (FNFG, Financial) filed Quarterly Report for the period ended 2010-06-30.
First Niagara Financial Group Inc. has a market cap of $2.74 billion; its shares were traded at around $13.1 with a P/E ratio of 17.24 and P/S ratio of 4.44. The dividend yield of First Niagara Financial Group Inc. stocks is 4.27%. First Niagara Financial Group Inc. had an annual average earning growth of 6.5% over the past 10 years.FNFG is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., John Keeley of Keeley Fund Management, RS Investment Management, Manning & Napier Advisors, Inc, Paul Tudor Jones of The Tudor Group, Diamond Hill Capital of Diamond Hill Capital Management Inc, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC.
Our evaluation of our allowance for credit losses is based on a continuous review of our loan portfolio. The methodology that we use for determining the amount of the allowance for credit losses consists of several elements. We use an internal loan grading system with eight categories of loan grades used in evaluating our commercial related loan portfolio. In our loan grading system, pass loans are graded 1 through 4, special mention loans are graded 5, substandard loans are graded 6, doubtful loans are graded 7 and loss loans (which are fully charged off) are graded 8. The definitions of special mention, substandard, doubtful and loss are consistent with bank regulatory definitions. As part of our credit monitoring process, our loan officers perform formal reviews based upon the credit attributes of the respective loans. Pass graded loans are continually monitored through our review of current information related to each loan. The nature of the current information available and used by us includes, as applicable, review of payment status and delinquency reporting, receipt and analysis of interim and annual financial statements, rent roll data, delinquent property tax searches, periodic loan officer inspections of properties, and loan officer knowledge of their borrowers, as well as the business environment in their respective market areas. We perform a formal review on a more frequent basis if the above considerations indicate that such review is warranted. Further, based upon consideration of the above information, if appropriate, loan grading and loan classifications can be reevaluated prior to the scheduled full review. We review all pass graded individual commercial real estate and business loans and/or total loan concentration to one borrower greater than $500 thousand and less than $1 million no less frequently than every 36 months and those loans over $1 million no less frequently than every 18 months. Substandard loans greater than $1 million are required to have an appraisal performed at least every 18 months on real estate collateral, and substandard loans greater than $500 thousand to $1 million are required to have an appraisal performed at least every 24 months. Non-real estate collateral is reappraised on an as-needed basis, as determined by the loan officer, our Classified Loan Review Committee, or by credit risk management based upon the facts and circumstances of the individual relationship.
Net income for the six months ended June 30, 2010 increased to $49 million, compared to $40 million for the six months ended June 30, 2009, reflecting the impact of our Western Pennsylvania branch acquisition in September 2009 from National City Bank (NatCity) and our Eastern Pennsylvania merger with Harleysville in April 2010. Net income decreased slightly to $20 million for the quarter ended June 30, 2010 from $21 million for the quarter ended June 30, 2009 as a result of $28 million of merger and acquisition integration expenses and $8 million of charitable contributions related to our merger with Harleysville which slightly more than offset the impact of the above mentioned acquisitions.
Our diluted earnings per common share for the first six months of 2010 increased to $0.25, compared to $0.22 for the first six months of 2009, and increased to $0.10 for the quarter ended June 30, 2010 from $0.08 for the quarter ended June 30, 2009. The diluted earnings per share comparison to the prior year reflected the impact of an incremental 69 million shares that were issued in two 2009 equity offerings to bolster our capital position and provide funds for our strategic growth initiatives as well as the 20 million shares we issued to Harleysville stockholders. In addition, the prior year earnings per share comparison reflects $12 million in preferred stock dividends and discount accretion related to our redemption in May 2009 of our preferred stock issued to the U.S. Department of the Treasury.
These increases were partially offset by a $120 million increase in noninterest expenses, including a $44 million increase in salaries and benefits expense during the first six months of 2010 to $112 million compared to the same period in the prior year, primarily due to our September 2009 NatCity branch acquisition and April 2010 merger with Harleysville as well as the increase in our supporting infrastructure. Additionally, 2010 noninterest expenses included a $30 million increase in merger and acquisition integration expenses and an $8 million charitable contribution to the First Niagara Bank Foundation.
Total assets increased $5.9 billion from $14.6 billion at December 31, 2009 to $20.5 billion at June 30, 2010 primarily due to our merger with Harleysville whereby we acquired assets with a fair value of $5.3 billion. In addition, we noted the following balance trends during 2010 (excludes the balances acquired in the merger with Harleysville):
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First Niagara Financial Group Inc. has a market cap of $2.74 billion; its shares were traded at around $13.1 with a P/E ratio of 17.24 and P/S ratio of 4.44. The dividend yield of First Niagara Financial Group Inc. stocks is 4.27%. First Niagara Financial Group Inc. had an annual average earning growth of 6.5% over the past 10 years.FNFG is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., John Keeley of Keeley Fund Management, RS Investment Management, Manning & Napier Advisors, Inc, Paul Tudor Jones of The Tudor Group, Diamond Hill Capital of Diamond Hill Capital Management Inc, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
On April 9, 2010, we acquired all of the outstanding common shares of Harleysville National Corporation (Harleysville), the parent company of Harleysville National Bank and Trust Company, and thereby acquired all of Harleysville National Banks 83 branch locations in Eastern Pennsylvania. As a result of the merger, we acquired assets with a fair value of $5.3 billion, including cash of $1.1 billion and loans with a fair value of $2.6 billion, and we assumed deposits of $4.0 billion and borrowings of $960 million. Under the terms of the merger agreement, Harleysville stockholders received 20.3 million shares of First Niagara Financial Group, Inc. common stock.Our evaluation of our allowance for credit losses is based on a continuous review of our loan portfolio. The methodology that we use for determining the amount of the allowance for credit losses consists of several elements. We use an internal loan grading system with eight categories of loan grades used in evaluating our commercial related loan portfolio. In our loan grading system, pass loans are graded 1 through 4, special mention loans are graded 5, substandard loans are graded 6, doubtful loans are graded 7 and loss loans (which are fully charged off) are graded 8. The definitions of special mention, substandard, doubtful and loss are consistent with bank regulatory definitions. As part of our credit monitoring process, our loan officers perform formal reviews based upon the credit attributes of the respective loans. Pass graded loans are continually monitored through our review of current information related to each loan. The nature of the current information available and used by us includes, as applicable, review of payment status and delinquency reporting, receipt and analysis of interim and annual financial statements, rent roll data, delinquent property tax searches, periodic loan officer inspections of properties, and loan officer knowledge of their borrowers, as well as the business environment in their respective market areas. We perform a formal review on a more frequent basis if the above considerations indicate that such review is warranted. Further, based upon consideration of the above information, if appropriate, loan grading and loan classifications can be reevaluated prior to the scheduled full review. We review all pass graded individual commercial real estate and business loans and/or total loan concentration to one borrower greater than $500 thousand and less than $1 million no less frequently than every 36 months and those loans over $1 million no less frequently than every 18 months. Substandard loans greater than $1 million are required to have an appraisal performed at least every 18 months on real estate collateral, and substandard loans greater than $500 thousand to $1 million are required to have an appraisal performed at least every 24 months. Non-real estate collateral is reappraised on an as-needed basis, as determined by the loan officer, our Classified Loan Review Committee, or by credit risk management based upon the facts and circumstances of the individual relationship.
Net income for the six months ended June 30, 2010 increased to $49 million, compared to $40 million for the six months ended June 30, 2009, reflecting the impact of our Western Pennsylvania branch acquisition in September 2009 from National City Bank (NatCity) and our Eastern Pennsylvania merger with Harleysville in April 2010. Net income decreased slightly to $20 million for the quarter ended June 30, 2010 from $21 million for the quarter ended June 30, 2009 as a result of $28 million of merger and acquisition integration expenses and $8 million of charitable contributions related to our merger with Harleysville which slightly more than offset the impact of the above mentioned acquisitions.
Our diluted earnings per common share for the first six months of 2010 increased to $0.25, compared to $0.22 for the first six months of 2009, and increased to $0.10 for the quarter ended June 30, 2010 from $0.08 for the quarter ended June 30, 2009. The diluted earnings per share comparison to the prior year reflected the impact of an incremental 69 million shares that were issued in two 2009 equity offerings to bolster our capital position and provide funds for our strategic growth initiatives as well as the 20 million shares we issued to Harleysville stockholders. In addition, the prior year earnings per share comparison reflects $12 million in preferred stock dividends and discount accretion related to our redemption in May 2009 of our preferred stock issued to the U.S. Department of the Treasury.
These increases were partially offset by a $120 million increase in noninterest expenses, including a $44 million increase in salaries and benefits expense during the first six months of 2010 to $112 million compared to the same period in the prior year, primarily due to our September 2009 NatCity branch acquisition and April 2010 merger with Harleysville as well as the increase in our supporting infrastructure. Additionally, 2010 noninterest expenses included a $30 million increase in merger and acquisition integration expenses and an $8 million charitable contribution to the First Niagara Bank Foundation.
Total assets increased $5.9 billion from $14.6 billion at December 31, 2009 to $20.5 billion at June 30, 2010 primarily due to our merger with Harleysville whereby we acquired assets with a fair value of $5.3 billion. In addition, we noted the following balance trends during 2010 (excludes the balances acquired in the merger with Harleysville):
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