BUFFALO, N.Y., Jan. 16, 2013 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (Nasdaq:FNFG) announced today that it will recognize a pre-tax adjustment of $16 million, or $0.03 per share, in 2012 to accelerate premium amortization on its Collateralized Mortgage Obligations (CMO) portfolio. The adjustment reduces the amount of unamortized premium on the CMO portfolio to reflect the impacts of the substantial level of prepayments received in recent months and the expected elevated levels of cash flows to be received for the foreseeable future. Except for this adjustment, First Niagara expects to report non-GAAP operating earnings per share consistent with current consensus analyst expectations. Excluding any impacts of this adjustment, the net interest margin in the fourth quarter of 2012 is expected to be 3.42% (non-GAAP*). Residential Mortgage Backed Securities Portfolio Summary The table below summarizes key details pertaining to the company's residential mortgage backed securities portfolio:
|Cost basis at December 31, 2012||$4.8 billion||$0.8 billion||$5.7 billion|
|Remaining unamortized premium||$74 million||$22 million||$ 96 million|
|Unamortized premium as % of par||1.6%||2.7%||1.7%|
|Yield to maturity (excludes new purchases)||2.37%||2.95%||2.45%|
Forward-Looking Statements - This press release contains forward-looking statements with respect to the financial condition and results of operations of First Niagara Financial Group, Inc. including, without limitations, statements relating to the earnings outlook of the company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans that could result from an economic downturn; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with an increase in commercial real estate and business loans and non-performing loans.
CONTACT: First Niagara Contacts Investors: Ram Shankar Senior Vice President, Investor Relations (716) 270-8623 firstname.lastname@example.org News Media: David Lanzillo Senior Vice President, Corporate Communications (716) 819-5780 email@example.com