First Niagara Financial Group Inc. (FNFG, Financial) filed Quarterly Report for the period ended 2010-03-31.
First Niagara Financial Group Inc. has a market cap of $2.62 billion; its shares were traded at around $13.9 with a P/E ratio of 22.42 and P/S ratio of 4.25. The dividend yield of First Niagara Financial Group Inc. stocks is 4.03%. 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, John Griffin of Blue Ridge Capital, RS Investment Management, Jim Simons of Renaissance Technologies LLC, Manning & Napier Advisors, Inc, Diamond Hill Capital of Diamond Hill Capital Management Inc, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Our evaluation of our allowance for credit losses is based on a continuing 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 formally review all individual commercial real estate and business credits and/or total loan concentrations to one borrower greater than $500 thousand and less than $1 million no less frequently than every 36 months and those over $1 million no less frequently than every 18 months. We review nonaccruing, impaired, and delinquent commercial loans individually every quarter and we consider the value of any underlying collateral or future cash flows when determining estimates of losses on those loans and the need, if any, for a specific allowance. All loans over $300 thousand classified as special mention and all loans over $200 thousand classified as substandard or doubtful are reviewed quarterly in accordance with our Allowance for Loan and Lease Loss Policy. In addition, a substantial portion of our commercial loan portfolio is reviewed and rated during the year by our internal loan review unit. For all nonclassified loans, we estimate losses and allocate allowance by common categories (commercial real estate, multi-family, residential, home equity, consumer, etc.) based primarily on our historical loss experience, industry trends, trends in the local real estate market, and the current business and economic environment in our market areas.
Net income for the three months ended March 31, 2010 increased to $28.9 million, compared to $18.7 million for the three months ended March 31, 2009. Our diluted earnings per common share for the first three months of 2010 increased to $0.16, compared to $0.14 for the first three months of 2009. The diluted earnings per share comparison to the prior year reflects 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. Our return on average assets for the quarter ended March 31, 2010 remained unchanged at 0.81% compared to the quarter ended March 31, 2009. Our return on average common equity for the quarter ended March 31, 2010 increased to 4.88% from 4.18% for the quarter ended March 31, 2009.
Results for the first quarter of 2010 as compared to the first quarter of 2009 were most significantly impacted by a $41.5 million, or 57%, increase in our net interest income. This increase resulted from a 57% increase in our average interest-earning assets, a 56% increase in our average interest-bearing liabilities, and a 14 basis point increase in our net interest spread. Additionally, banking services income increased to $16.0 million for the current quarter, compared to $10.0 million in the first quarter of 2009. Substantially all of this increase is due to our expansion into Western Pennsylvania as a result of the National City Bank (NatCity) branch acquisition.
Total assets increased $383 million from $14.6 billion at December 31, 2009 to $15.0 billion at March 31, 2010. In addition, we noted the following balance trends during 2010:
While we originated $107 million in new residential loans, our residential real estate loan portfolio decreased by $57 million as ongoing consumer preference is for long-term fixed rate products which we generally do not maintain in our portfolio. In addition, we experienced an 8% decrease in our other consumer loans portfolio, as we continue to deemphasize certain types of consumer loans, including indirect auto loans.
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First Niagara Financial Group Inc. has a market cap of $2.62 billion; its shares were traded at around $13.9 with a P/E ratio of 22.42 and P/S ratio of 4.25. The dividend yield of First Niagara Financial Group Inc. stocks is 4.03%. 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, John Griffin of Blue Ridge Capital, RS Investment Management, Jim Simons of Renaissance Technologies LLC, Manning & Napier Advisors, Inc, Diamond Hill Capital of Diamond Hill Capital Management Inc, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
At March 31, 2010, we had $15.0 billion in assets, $9.8 billion in deposits, and 172 full-service branch locations. As a result of the merger with Harleysville on April 9, 2010, we have approximately $20 billion in assets, $14 billion in deposits and 255 branches across Upstate New York and Pennsylvania.Our evaluation of our allowance for credit losses is based on a continuing 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 formally review all individual commercial real estate and business credits and/or total loan concentrations to one borrower greater than $500 thousand and less than $1 million no less frequently than every 36 months and those over $1 million no less frequently than every 18 months. We review nonaccruing, impaired, and delinquent commercial loans individually every quarter and we consider the value of any underlying collateral or future cash flows when determining estimates of losses on those loans and the need, if any, for a specific allowance. All loans over $300 thousand classified as special mention and all loans over $200 thousand classified as substandard or doubtful are reviewed quarterly in accordance with our Allowance for Loan and Lease Loss Policy. In addition, a substantial portion of our commercial loan portfolio is reviewed and rated during the year by our internal loan review unit. For all nonclassified loans, we estimate losses and allocate allowance by common categories (commercial real estate, multi-family, residential, home equity, consumer, etc.) based primarily on our historical loss experience, industry trends, trends in the local real estate market, and the current business and economic environment in our market areas.
Net income for the three months ended March 31, 2010 increased to $28.9 million, compared to $18.7 million for the three months ended March 31, 2009. Our diluted earnings per common share for the first three months of 2010 increased to $0.16, compared to $0.14 for the first three months of 2009. The diluted earnings per share comparison to the prior year reflects 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. Our return on average assets for the quarter ended March 31, 2010 remained unchanged at 0.81% compared to the quarter ended March 31, 2009. Our return on average common equity for the quarter ended March 31, 2010 increased to 4.88% from 4.18% for the quarter ended March 31, 2009.
Results for the first quarter of 2010 as compared to the first quarter of 2009 were most significantly impacted by a $41.5 million, or 57%, increase in our net interest income. This increase resulted from a 57% increase in our average interest-earning assets, a 56% increase in our average interest-bearing liabilities, and a 14 basis point increase in our net interest spread. Additionally, banking services income increased to $16.0 million for the current quarter, compared to $10.0 million in the first quarter of 2009. Substantially all of this increase is due to our expansion into Western Pennsylvania as a result of the National City Bank (NatCity) branch acquisition.
Total assets increased $383 million from $14.6 billion at December 31, 2009 to $15.0 billion at March 31, 2010. In addition, we noted the following balance trends during 2010:
While we originated $107 million in new residential loans, our residential real estate loan portfolio decreased by $57 million as ongoing consumer preference is for long-term fixed rate products which we generally do not maintain in our portfolio. In addition, we experienced an 8% decrease in our other consumer loans portfolio, as we continue to deemphasize certain types of consumer loans, including indirect auto loans.
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