• First quarter operating earnings of $0.14 per diluted share
    • First quarter GAAP earnings of $0.11 per diluted share, including merger-related integration expenses
  • Average loans increased 5% annualized QOQ
    • Average commercial loans (CRE and commercial business) up 7% annualized QOQ
    • Average consumer loans increased 2% annualized QOQ driven by indirect auto loan growth
  • Average deposit balances increased 1% annualized QOQ and 4% YOY
    • Average retail deposit balances increased 8% annualized QOQ and 3% YOY
    • Average retail noninterest-bearing deposit balances increased 18% annualized QOQ and 4% YOY
  • Originated net charge-offs decreased 15 basis points QOQ to 0.22% of average originated loans

BUFFALO, N.Y., April 29, 2016 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (NASDAQ:FNFG) today reported GAAP net income available to common shareholders of $40.8 million, or $0.11 per diluted share for the first quarter of 2016, compared to $43.3 million, or $0.12 per diluted share, for the quarter ended December 31, 2015. Excluding merger-related costs incurred during the first quarter of 2016, operating net income available to common shareholders was $49.9 million, or $0.14 per diluted share.

"The First Niagara team remains fully committed to keeping our customers at the center of all we do and their efforts are reflected in our first-quarter performance, which is highlighted by continued strong core business fundamentals, particularly loan and deposit growth. Compared to the year-ago quarter, we grew average commercial loans by 5%, delivered 7% growth in average checking account deposit balances, and reported improved credit metrics," said Gary M. Crosby, President and Chief Executive Officer.  "We're maintaining a strong competitive position while we move forward on our planned merger with KeyCorp."

"In the first quarter, we delivered on the strong commercial loan pipeline at year-end which translated to an 11% annualized increase in period-end C&I loan balances and 5% QOQ increase on an average basis," said Gregory W. Norwood, Chief Financial Officer. "Revenue and expenses were largely consistent with typical first quarter seasonal trends. Our originated net charge-offs of just 22 basis points in the first quarter also reflects continued stable asset quality as well as the recovery on an energy credit that was previously charged-off."

First Quarter Results

In the first quarter of 2016, First Niagara reported GAAP net income available to common shareholders of $40.8 million, or $0.11 per diluted share, compared to $43.3 million, or $0.12 per diluted share in the fourth quarter of 2015. Reported results in the first quarter of 2016 and fourth quarter of 2015 reflect pre-tax merger related and restructuring costs of $13 million and $18 million, respectively. Excluding these items, operating net income available to common shareholders was $49.9 million, or $0.14 per diluted share, compared to $55.3 million, or $0.15 per diluted share in the fourth quarter of 2015.

Compared to the fourth quarter of 2015, the change in operating net income available to common shareholders was primarily driven by:
  • A $1 million increase in net interest income driven by a 5% annualized increase in average earning assets and two basis point expansion in net interest margin in part driven by higher short-term interest rates, and partially offset by lower net interest income from one less day in the first quarter.
  • A $10 million or 12% decrease in noninterest income driven by moderation in capital markets income from strong fourth quarter levels which included a favorable credit valuation adjustment, seasonal declines in deposit service charges and merchant and card fees, lower wealth management income due to lower producer levels and equity market volatility, and lower mortgage banking revenues due to a $1 million repurchase reserve reversal taken in the fourth quarter of 2015.
  • A $6 million or 2% decrease in operating noninterest expenses primarily driven by lower technology and professional services spend, partially offset by typical first quarter increases in payroll taxes and other benefits expenses.
  • A higher effective tax rate attributable to the expiration of benefits from certain tax credit investments.

In the first quarter of 2015, First Niagara reported GAAP net income available to common shareholders of $43.8 million, or $0.12 per diluted share. Results in the first quarter of 2015 included $18 million of pre-tax restructuring charges. Excluding these nonrecurring items, first quarter 2015 net income available to common shareholders was $54.7 million, or $0.15 per diluted share.

Compared to the first quarter of 2015, the change in operating net income available to common shareholders in the first quarter of 2016 was primarily driven by:

  • A 2% increase in net interest income driven by a 3% annualized increase in average earning assets, offset by a seven basis point compression in the net interest margin driven by increases in cost of deposits and borrowings.
  • A $10 million increase in provision for loan losses driven by greater reserve build.
  • A 4% decrease in noninterest income, driven by lower capital markets, lower commercial lines insurance revenues, and lower wealth management income attributable to market volatility in the first quarter of 2016.
  • Modestly lower noninterest expense as an increase in incentive compensation expenses was offset by declines in amortization of intangibles, marketing spend, FDIC assessments and third party professional services expenses.
Operating Results (Non-GAAP) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Net interest income $   267.6   $   266.5   $   263.5   $   263.1   $   262.9  
Provision for credit losses   22.5     22.9     19.8     20.8     12.8  
Noninterest income   79.1     89.4     83.4     86.6     82.2  
Noninterest expense   241.9     247.4     245.4     247.9     243.5  
Operating net income   57.4     62.8     60.5     61.0     62.2  
Preferred stock dividend   7.5     7.5     7.5     7.5     7.5  
Operating net income available to common $   49.9   $   55.3   $   52.9   $   53.5   $   54.7  
Weighted average diluted shares outstanding   354.0     353.8     353.2     352.8     352.6  
Operating earnings per diluted share $   0.14   $   0.15   $  0.15   $   0.15   $   0.15  
           
Reported Results (GAAP) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Operating net income before non-op. items $   57.4   $   62.8   $   60.5   $   61.0   $   62.2  
Non-operating items (a)   9.1     12.0     -     -     10.9  
Net Income   48.3     50.8     60.5     61.0     51.4  
Preferred stock dividend   7.5     7.5     7.5     7.5     7.5  
Net income available to common $   40.8   $   43.3   $   52.9   $   53.5   $   43.8  
Weighted average diluted shares outstanding   354.0     353.8     353.2     352.8     352.6  
Earnings per diluted share $   0.11   $   0.12   $   0.15   $   0.15   $   0.12  

All amounts in millions except earnings per diluted share.

(a) Q1 2016: Non-operating charges comprised of merger related costs including employee retention expenses, classification of compensation of certain personnel dedicated to merger integration efforts as well as costs related to securing shareholder approval for the merger, net of taxes.

    Q4 2015: Non-operating charges primarily comprised of merger related costs including investment banker and other professional services fees, employee retention expenses, classification of compensation of certain personnel dedicated to merger integration efforts as well as third-party professional fees incurred in connection with the overstatement of allowance resulting from mid-level employee misconduct, net of taxes.

    Q1 2015: Non-operating charges primarily related to staffing realignment, branch consolidations and third-party professional fees incurred in connection with the overstatement of allowance resulting from mid-level employee misconduct, net of taxes.

Loans

Average loans increased 5% annualized from the prior quarter to $24.1 billion, driven primarily by increases in the company's commercial real estate (CRE), commercial business (C&I), and indirect auto portfolios. On an end-of-period basis, total loans increased 2% annualized from the prior quarter driven by an 11% annualized increase in C&I loans and 12% increase in indirect auto loans.

Average commercial loans, which include commercial business (C&I) and commercial real estate (CRE) loans, increased 7% annualized from prior quarter to $14.7 billion, primarily driven by growth in the company's New England, Western Pennsylvania, and Tri-State regions.
  • Average CRE loans increased 7% annualized from the prior quarter to $8.6 billion driven by new commercial mortgage and construction lending volumes.
  • Average C&I loans increased 6% annualized QOQ to $6.1 billion reflecting strong origination activity across the company's footprint.

Average consumer loans increased 2% annualized from prior quarter to $9.4 billion.
  • Average indirect auto loan balances increased 9% annualized or by $51 million to $2.4 billion, as strong new origination activity was partially offset by increased pay-downs. Indirect auto originations during the quarter totaled $314 million. New originations in the first quarter yielded 3.41%, net of dealer reserve, compared to 3.30% on originations in the prior quarter.
  • Average residential real estate loans were flat to the prior quarter. 
  • Home equity balances increased for the twelfth consecutive quarter to $3.1 billion, or 2% annualized from the prior quarter as new volumes were offset by pay-downs driven by higher customer refinancing activity given low mortgage rates.
  • Credit card balances were down $8 million, or 11% annualized due to typical seasonality.
Average Loans Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Commercial real estate $   8,625   $   8,476   $   8,277   $   8,257   $   8,263  
Commercial business   6,062     5,971     5,972     5,830     5,797  
Total commercial   14,687     14,447     14,249     14,087     14,060  
Residential real estate   3,346     3,346     3,338     3,326     3,338  
Home equity   3,066     3,052     3,001     2,963     2,939  
Indirect auto   2,420     2,369     2,293     2,238     2,187  
Credit cards   297     305     306     304     311  
Other consumer   242     250     255     260     275  
Total consumer   9,371     9,322     9,193     9,091     9,050  
Total loans $   24,058   $    23,769   $   23,442   $   23,178   $   23,110  

All amounts in millions.

Credit Quality

At March 31, 2016, the allowance for loan losses was $253 million, compared to $242 million at December 31, 2015.  In the first quarter, provision for loan losses totaled $22.5 million, compared to $22.4 million in the prior quarter. Nonperforming assets comprised 0.59% of total assets, essentially flat compared to December 31, 2015.  Information for both the originated and acquired portfolios follows.
  Q1 2016   Q4 2015
$ in millions Originated Acquired Total   Originated Acquired Total
Provision for loan losses* $   22 .5   $   0.0   $   22.5     $   22.4   $   0.0   $   22.4  
Net charge-offs   11.4     0.4     11.8       19.1     0.0     19.1  
NCOs/ Avg Loans   0.22 %   0.05 %   0.20 %     0.37 %   0.00 %   0.32 %
Total loans** $   21,362   $   2,817   $   24,178     $   21,101   $   2,937   $   24,038  
Allowance $   247.8   $   5.0   $   252.8     $   236.7   $   5.3   $   242.0  
Allowance/Loans   1.16 %   0.18 %   1.05 %     1.12 %   0.18 %   1.01 %
Nonperforming Loans $   196.7   $   24.9   $   221.5     $   188.2   $   25.3   $   213.6  
NPLs/ Loans   0.92 %   0.88 %   0.92 %     0.89 %   0.86 %   0.89 %
Criticized $   775.9   $   178.5   $   954.5     $   761.6   $   183.2   $   944.8  
Criticized as % of Loans   3.63 %   6.34 %   3.95 %     3.61 %   6.24 %   3.93 %
Classified $   462.9   $   138.6   $   601.5     $   450.7   $   152.2   $   602.9  
Classified as % of Loans   2.17 %   4.92 %   2.49 %     2.14 %   5.18 %   2.51 %

(*) Excludes provision for unfunded commitment of $0.5 million in 4Q15; none in 1Q16 (**) Acquired loans net of associated credit discount; see accompanying tables for further information

Originated loans

The provision for loan losses on originated loans totaled $23 million, compared to $22 million in the fourth quarter of 2015. The current quarter provision included $11 million to cover net charge-offs on originated loans and $11 million to support both $261 million in originated loan growth and reserve  build toward the company's exposure to scrap metal companies and demolition companies whose profitability is partially dependent on the sale of scrap metal. Originated net charge-offs in the first quarter equaled $11 million or 22 basis points of average originated loans, down from 37 basis points in the fourth quarter of 2015. The decrease in net charge-offs were driven by a recovery on a previously charged-off energy credit as well as moderation from elevated fourth quarter levels which included losses related to two commercial credits.

At March 31, 2016, nonperforming originated loans totaled $197 million, or 0.92% of originated loans, compared to 0.89% at December 31, 2015. The increase was primarily driven by new inflows of a few energy-related commercial credits, as well as a demolition contractor whose profitability is partially dependent on the sale of scrap metal, and offset by pay-downs, charge-offs and resolutions. At March 31, 2016, the allowance for loan losses on originated loans totaled $248 million or 1.16% of such loans, compared to $237 million or 1.12% of such loans at December 31, 2015. The increase in allowance coverage ratio reflects reserve build toward the company's modest metals exposure.

Acquired loans

There was no provision for losses on acquired loans in both the first quarter of 2016 and the fourth quarter of 2015.  Net charge-offs on the acquired portfolio were $0.4 million, compared to zero in the prior quarter.  At March 31, 2016, the allowance for loan losses on acquired loans totaled $5 million, unchanged from December 31, 2015. Acquired nonperforming loans totaled $25 million, also unchanged from the prior quarter.  At March 31, 2016, remaining credit marks available to absorb losses on a pool-by-pool basis totaled $57 million.

Deposits

Average deposits increased 1% annualized from the prior quarter to $28.9 billion.
  • Non-interest checking deposit balances averaged $5.7 billion, decreased 14% annualized from the prior quarter driven by business and municipal deposit balances but were up 4% from the year-ago period.
  • Time deposits increased 24% annualized to $3.7 billion, driven by a $144 million increase in brokered certificate of deposit (CD) balances and an $86 million increase in Retail CDs.
  • Money market deposit balances were flat from the prior quarter as a $135 million, or 8%, increase in retail money market balances was offset by seasonal declines in municipal money market deposit balances.
  • Average transactional deposit balances, which include interest-bearing and noninterest-bearing checking account balances, increased 6% from the year-ago period and decreased 6% annualized from the prior quarter and currently represents 38% of the company's deposit balances.
  • The 2% sequential increase in interest-checking deposit balances was driven by a $74 million increase in retail interest checking balances.
  • Average savings balances increased 1% annualized from the prior quarter driven by modestly higher retail balances.
Average Deposits Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Noninterest-bearing deposits $     5,666   $     5,868   $     5,661   $   5,427   $   5,430  
Savings accounts   3,371     3,364     3,427     3,494     3,432  
Interest-bearing checking   5,362     5,333     5,165     5,131     5,001  
Money market deposits   10,725     10,719     10,403     10,251     10,132  
Certificates of deposit   3,726     3,515     3,962     3,917     3,778  
Total deposits $   28,850   $   28,799   $   28,618   $   28,220   $   27,773  

All amounts in millions.

Net Interest Income

First quarter 2016 GAAP net interest income of $268 million increased $1 million from the prior quarter, driven in part by earning asset growth and modest benefit from an increase in short-term interest rates and offset by one less day in the quarter. Reported net interest margin of 3.00% was up 2 basis points from the prior quarter.
  • Yields on loans increased 8 basis points to 3.73% primarily reflecting benefit from the recent increase in short-term interest rates.
  • Yields on investment securities increased 2 basis points to 2.92%.
  • The average cost of interest-bearing deposits increased 2 basis points from the prior quarter to 0.32%.
Net Interest Income (Tax Equivalent) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Quarter as Reported    $     272.8      $    271.7    $   268.5   $   268.0    $   267.8  
Less: CLO pay-off discount recognition   -     -     (1.2 )   (2.3 )   -  
Add: CMO Retroactive premium amortization   -     -     -     1.1     -  
Add: CRE prepayment penalties   -     (0.5 )   -     -     -  
Less: Early loan payoffs   -     -     -     (1.7 )   -  
Less: Other miscellaneous items   (0.6 )   (0.5 )   -     -     -  
Sub-Total   (0.6 )   (1.0 )   (1.2 )   (2.9 )   -  
Normalized Net Interest Income $   272.2   $   270.7   $   267.3   $   265.1   $   267.8  

All amounts in millions.
Net Interest Margin (Tax Equivalent) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Quarter as Reported         3.00 %       2.98 %     2.98 %   3.02 %       3.07 %
Less: CLO pay-off discount recognition   -     -     (0.01 )%   (0.03 )%   -  
Add: CMO Retroactive premium amortization   -     -     -     0.01 %   -  
Add: CRE prepayment penalties   -     (0.01 )%   -     -     -  
Less: Early loan payoffs   -     -     -     (0.02 %)   -  
Less: Other miscellaneous items   (0.01 )%   (0.01 )%   -     -     -  
Sub-Total   (0.01 )%   (0.02 )%   (0.01 )%   (0.03 )%   -  
Normalized Net Interest Margin   2.99 %   2.96 %   2.97 %   2.99 %   3.07 %

Noninterest Income

First quarter 2016 noninterest income of $79 million decreased 12% or $10 million compared to the prior quarter.
  • Deposit service charges decreased $1 million or 6% due to typical first quarter seasonality.
  • Merchant and card fees decreased $1 million driven by seasonally lower interchange revenues consistent with lower card transaction volumes.
  • Wealth management revenue decreased $1 million from prior quarter driven in part by equity market volatility.
  • Capital markets income, which includes income from derivatives and syndications, decreased $4 million, primarily driven by an unfavorable quarter-over-quarter change in credit valuation adjustments.
  • Mortgage banking revenues were $1 million lower than the prior quarter reflecting a $1 million repurchase reserve reversal recognized in the fourth quarter of 2015. Locked volumes increased QOQ, while gain-on-sale margin remained relatively flat.
  • Other noninterest income decreased $2 million from the prior quarter due to lower equity and investment gains as well as a one-time gain from the sale of a low-income housing property recognized in the prior quarter.
Noninterest Income Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Deposit service charges $     21.5   $     22.9   $     22.9   $     22.2   $   20.4  
Insurance commissions     14.6       14.9       18.3       17.1       15.7  
Merchant and card fees     12.3       13.3       13.4       13.3       11.9  
Wealth management services     13.6       14.6       14.6       15.7       14.7  
Mortgage banking     4.0       4.9       5.1       5.8       4.9  
Capital markets income     2.3       6.6       2.6       5.3       4.2  
Lending and leasing     4.1       4.2       4.5       4.0       4.4  
Bank owned life insurance     3.5       3.3       2.8       3.2       3.6  
Other income   3.2     4.7     (0.7 )     0.1       2.6  
Total noninterest income $   79.1   $   89.4   $   83.4   $   86.6   $   82.2  

All amounts in millions.

Noninterest Expense

Operating noninterest expenses totaled $242 million in the first quarter of 2016, or 2% lower than fourth quarter 2015 levels. The quarter-over-quarter decrease was primarily driven by lower technology and professional services expenses.
  • Salaries and benefits expense of $115 million increased modestly compared to the prior quarter as typical resetting of payroll taxes and other seasonal benefits more than offset lower salaries from lower headcount.
  • Occupancy and equipment expense increased 2%, due primarily to lower rental income associated with a property that was sold.
  • Technology and communications decreased $3 million, or 7% from prior quarter on lower infrastructure costs and depreciation expense.
  • Marketing and advertising spend were $1 million lower compared to fourth quarter levels and consistent with seasonal patterns.
  • Professional services fees decreased $3 million from fourth quarter levels driven by pause of certain projects and the associated decline in third party services expenses.
  • Other expenses decreased $1 million sequentially driven in part by lower other real estate (ORE) valuation write-downs and other corporate expenses.
Operating Noninterest Expense (Non-GAAP)* Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Salaries and employee benefits $   115.0   $   113.1   $   113.8   $   113.6   $   112.0  
Occupancy and equipment     26.5       26.0       25.5       26.0       27.3  
Technology and communications     35.4       38.2       38.3       36.5       35.1  
Marketing and advertising     8.8       9.7       8.4       10.3       9.9  
Professional services     12.4       15.4       18.1       16.3       13.1  
Amortization of intangibles     3.9       4.0       4.0       5.1       6.2  
Federal deposit insurance premiums     10.5       10.4       10.0       11.8       11.2  
Other expense     29.4       30.7       27.3       28.4       28.9  
Total operating noninterest expense $   241.9   $   247.4   $   245.4   $   247.9   $   243.5  

*All amounts in millions. See appendix for reconciliation of GAAP to Non-GAAP amounts            In the first quarter of 2016, the operating efficiency ratio was 69.8%, compared to 69.5% in the prior quarter.

Capital

Beginning in the first quarter of 2015, all regulatory capital ratios and amounts were calculated under the Basel III standardized transitional approach. At March 31, 2016, the company's consolidated Total Risk Based capital and Common Equity Tier 1 capital ratios were 12.1% and 8.6%, respectively, relatively unchanged from December 31, 2015. The company remains well above current regulatory guidelines for well-capitalized institutions. 

About First Niagara

First Niagara, through its wholly owned subsidiary, First Niagara Bank, N.A., is a multi-state community-oriented bank with approximately 390 branches, $40 billion in assets, $30 billion in deposits, and approximately 5,300 employees providing financial services to individuals, families and businesses across New York, Pennsylvania, Connecticut and Massachusetts. For more information, visit www.firstniagara.com.

Safe Harbor Statement

Non-GAAP Measures - This news release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP).  The company believes that non-GAAP financial measures provide a meaningful comparison of the underlying operational performance of the company, and facilitate investors' assessments of business and performance trends in comparison to others in the financial services industry.  In addition, the company believes the exclusion of these non-operating items enables management to perform a more effective evaluation and comparison of the company's results and to assess performance in relation to the company's ongoing operations.  These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.  Where non-GAAP disclosures are used in this news release, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document.

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) impact of the pending merger agreement on customers and employees; and (7) ability to consummate the merger transaction with KeyCorp on a timely basis or at all.
                     
First Niagara Financial Group, Inc.                    
Income Statement Highlights - Reported Basis                    
(in thousands, except per share amounts)                    
                           
            2016       2015       2014    
           First     Fourth   Third   Second   First     Fourth   
           Quarter     Quarter   Quarter   Quarter   Quarter     Quarter   
                           
Interest income:                    
  Loans and leases   $   219,050     $   214,945   $   211,407   $   211,899   $   210,371     $   214,609    
  Investment securities and other        89,759         88,825       87,914       86,356       86,280         86,919    
    Total interest income         308,809         303,770       299,321       298,255       296,651         301,528    
                                                   
Interest expense:                                            
  Deposits        18,640         17,147       17,040       16,568       15,344         14,295    
  Borrowings        22,578         20,074       18,790       18,577       18,363         17,450    
    Total interest expense         41,218         37,221       35,830       35,145       33,707         31,745    
                                                   
      Net interest income       267,591         266,549       263,491       263,110       262,944         269,783    
Provision for credit losses       22,519         22,900       19,768       20,756       12,765         35,706    
      Net interest income after provision       245,072         243,649       243,723       242,354       250,179         234,077    
                                                   
Noninterest income:                                            
  Deposit service charges       21,507         22,919       22,944       22,208       20,389         22,611    
  Insurance commissions       14,562         14,920       18,252       17,060       15,714         14,764    
  Merchant and card fees       12,329         13,318       13,423       13,317       11,907         13,043    
  Wealth management services       13,610         14,567       14,572       15,718       14,650         14,404    
  Mortgage banking       3,950         4,894       5,070       5,783       4,887         4,600    
  Capital markets income       2,323         6,580       2,608       5,284       4,152         8,312    
  Lending and leasing        4,051         4,248       4,487       3,998       4,353         4,567    
  Bank owned life insurance        3,540         3,259       2,819       3,160       3,592         3,187    
  Other income       3,196         4,696       (732 )     79       2,600         (8,311 )  
    Total noninterest income       79,068         89,401       83,443       86,607       82,244         77,177    
                                                   
Noninterest expense:                                            
  Salaries and employee benefits       115,007         113,063       113,794       113,561       111,973         110,985    
  Occupancy and equipment       26,466         25,961       25,538       26,021       27,332         28,379    
  Technology and communications       35,419         38,232       38,301       36,486       35,061         33,940    
  Marketing and advertising       8,821         9,719       8,445       10,297       9,863         11,584    
  Professional services       12,401         15,361       18,052       16,321       13,070         16,644    
  Amortization of intangibles       3,860         3,972       4,001       5,092       6,205         6,432    
  Federal deposit insurance premiums       10,460         10,383       10,026       11,750       11,158         11,911    
  Merger and acquisition integration expenses       13,473         14,198       -        -        -          -     
  Restructuring charges       -          3,378       -        -        17,517         9,066    
  Deposit account remediation       -          -        -        -        -          (23,000 )  
  Other expense       29,445         30,728       27,276       28,371       28,859         28,371    
    Total noninterest expense       255,352         264,995       245,433       247,899       261,038         234,312    
                                                   
    Income before income tax       68,788         68,055       81,733       81,062       71,385         76,942    
Income tax expense       20,481         17,255       21,251       20,052       20,000         7,875    
    Net income       48,307         50,800       60,482       61,010       51,385         69,067    
Preferred stock dividend       7,547         7,547       7,547       7,547       7,547         7,547    
    Net income available to common stockholders   $   40,760     $   43,253   $   52,935   $   53,463   $   43,838     $   61,520    
                                                   
Financial Ratios:                                            
Earnings per basic share   $   0.11     $   0.12   $   0.15   $   0.15       0.12         0.17    
Earnings per diluted share   $   0.11     $   0.12   $   0.15   $   0.15       0.12         0.17    
Weighted average shares outstanding - basic (1)       351,372         351,306       351,293       351,126       350,741         350,444    
Weighted average shares outstanding - diluted (1)       353,965         353,797       353,248       352,791       352,621         352,152    
Net revenue (2)   $   346,659     $   355,950   $   346,934   $   349,717   $   345,188     $   346,960    
Noninterest income as a percentage of net revenue (2)   22.81 %     25.12 %   24.05 %   24.76 %   23.83 %     22.24 %  
Pre-tax, pre-provision income (3)   $   91,307     $   90,955   $   101,501   $   101,818   $   84,150     $   112,648    
Pre-tax, pre-provision income per diluted share (3)   $   0.26     $   0.26   $   0.29   $   0.29   $   0.24     $   0.32    
Pre-tax, pre-provision return on average assets (3)     0.92 %       0.91 %     1.03 %   1.05 %   0.88 %     1.17 %  
Net interest margin (4)     3.00 %     2.98 %   2.98 %   3.02 %   3.07 %     3.11 %  
Interest yield on average loans (4)     3.73 %     3.65 %   3.64 %   3.73 %   3.75 %     3.78 %  
Rate paid on interest-bearing liabilities     0.56 %     0.51 %   0.50 %   0.49 %   0.48 %     0.45 %  
Efficiency ratio     73.7 %     74.4 %   70.7 %   70.9 %   75.6 %     67.5 %  
Expenses as a percentage of average loans and deposits   1.9 %       2.0 %     1.9 %   1.9 %   2.1 %     1.8 %  
Effective tax rate       29.8 %       25.4 %     26.0 %     24.7 %     28.0 %       10.2 %  
Return on average assets (5)       0.49 %       0.51 %     0.61 %     0.63 %   0.54 %     0.72 %  
Return on average equity (5)       4.68 %       4.85 %     5.78 %     5.90 %   5.05 %     6.62 %  
Return on average tangible equity (3)(5)       7.04 %       7.32 %     8.73 %     8.94 %   7.68 %     10.07 %  
Return on average common equity       4.30 %       4.50 %     5.51 %     5.63 %   4.69 %     6.42 %  
Return on average tangible common equity (3)       6.77 %       7.10 %     8.72 %     8.94 %   7.48 %     10.24 %  
                           
  (1) Share count excludes unallocated ESOP shares prior to January 1, 2015 and unvested restricted stock shares.        
  (2 Net revenue is comprised of net interest income and noninterest income.
  (3 The tables in this earnings release present the computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail.  
  (4 Yields and rates calculated on a tax equivalent basis.
  (5 Return used to calculate ratio excludes preferred stock dividend.

 
First Niagara Financial Group, Inc.                  
Period End Balance Sheet             3        
(in thousands)                  
                         
            2016       2015       2014  
          March 31,    December 31,  September 30, June 30, March 31,   December 31, 
                         
Cash and cash equivalents   $   382,539     $   672,243   $   420,289   $   527,323   $   387,676     $   420,033  
Investment securities:                  
  Available for sale       5,439,220         5,471,291       5,725,608       5,750,860       5,911,419         5,915,338  
  Held to maturity       6,720,817         6,387,689       6,280,049       6,169,838       6,214,561         5,941,621  
  FHLB and FRB common stock       375,960         410,452       373,066       379,135       375,090         411,857  
    Total investment securities       12,535,997         12,269,432       12,378,723       12,299,833       12,501,070         12,268,816  
Loans held for sale       26,592         46,096       51,056       59,816       48,755         39,825  
Loans and leases:                   
  Commercial:                  
    Real estate       8,625,965         8,652,255       8,365,808       8,312,332       8,287,108         8,204,027  
    Business       6,174,753         6,013,217       6,031,358       5,923,524       5,790,980         5,775,413  
      Total commercial loans       14,800,718         14,665,472       14,397,166       14,235,856       14,078,088         13,979,440  
  Consumer:                  
    Residential real estate       3,330,533         3,354,639       3,345,701       3,329,799       3,330,216         3,353,081  
    Home equity       3,057,154         3,068,962       3,032,618       2,984,872       2,943,844         2,936,123  
    Indirect auto       2,464,318         2,393,105       2,330,826       2,256,004       2,200,913         2,166,320  
    Credit cards       288,747         310,813       305,779       304,682       301,228         324,113  
    Other consumer       236,911         244,935       254,109       257,204       263,985         278,305  
      Total consumer loans       9,377,663         9,372,454       9,269,033       9,132,561       9,040,186         9,057,942  
    Total loans and leases       24,178,381         24,037,926       23,666,199       23,368,417       23,118,274         23,037,382  
  Allowance for loan losses       252,800         242,036       238,700       235,600       231,138         234,251  
      Loans and leases, net       23,925,581         23,795,890       23,427,499       23,132,817       22,887,136         22,803,131  
Bank owned life insurance       439,084         436,709       434,263       431,335       428,454         426,192  
Goodwill and other intangibles       1,392,367         1,396,227       1,400,199       1,404,201       1,410,800         1,417,005  
Other assets       1,370,275         1,301,789       1,301,152       1,208,218       1,243,588         1,176,036  
Total assets   $   40,072,435     $   39,918,386   $   39,413,181   $   39,063,543   $   38,907,479     $   38,551,038  
                   
Deposits:                   
  Savings accounts   $   3,428,924     $   3,389,728   $   3,359,320   $   3,483,777   $   3,488,441     $   3,451,616  
  Interest-bearing checking       5,553,928         5,478,947       5,285,987       5,088,856       5,158,264         5,084,456  
  Money market deposits       10,884,350         10,653,792       10,483,721       10,303,873       10,368,358         9,962,220  
  Noninterest-bearing deposits       5,739,509         5,834,534       5,813,571       5,549,944       5,500,484         5,407,382  
  Certificates of deposit       3,954,033         3,343,878       3,873,521       4,020,367       3,734,226         3,875,563  
      Total deposits       29,560,744         28,700,879       28,816,120       28,446,817       28,249,773         27,781,237  
                         
Short-term borrowings       3,255,890         4,348,586       4,086,415       4,275,886       4,739,264         5,471,974  
Long-term borrowings       2,608,014         2,308,101       1,783,402       1,683,476       1,233,550         733,620  
Other liabilities       498,084         434,492       587,867       536,239       559,646         471,449  
  Total liabilities       35,922,732         35,792,058       35,273,804       34,942,418       34,782,233         34,458,280  
Preferred stockholders' equity       338,002         338,002       338,002       338,002       338,002         338,002  
Common stockholders' equity       3,811,701         3,788,326       3,801,375       3,783,123       3,787,244         3,754,756  
  Total stockholders' equity       4,149,703         4,126,328       4,139,377       4,121,125       4,125,246         4,092,758  
Total liabilities and stockholders' equity   $   40,072,435     $   39,918,386   $   39,413,181   $   39,063,543   $   38,907,479     $   38,551,038  
                         
Selected balance sheet information:                  
Total interest-earning assets (1)   $   36,789,339     $   36,677,134   $   36,099,580   $   35,813,498   $   35,594,208     $   35,310,447  
Total interest-bearing liabilities       29,685,139         29,523,032       28,872,365       28,856,235       28,722,103         28,579,449  
Net interest-earning assets   $   7,104,200     $   7,154,102   $   7,227,215   $   6,957,263   $   6,872,105     $   6,730,998  
                         
Tangible common equity (1)(2)   $   2,419,334     $   2,392,099   $   2,401,176   $   2,378,922   $   2,376,444     $   2,337,751  
Unrealized gain (loss) on available for sale securities, net of tax (3)     1,246         (9,577 )     29,877       37,464       68,194         52,244  
                         
Total core deposits   $   25,606,711     $   25,357,001   $   24,942,599   $   24,426,450   $   24,515,547     $   23,905,674  
                         
Originated loans (4)   $   21,361,753     $   21,101,040   $   20,591,532   $   19,929,719   $   19,528,609     $   19,295,553  
Acquired loans (5)       2,873,372         2,998,530       3,138,568       3,517,525       3,681,354         3,834,931  
Credit related discount on acquired loans (6)       (56,744 )       (61,644 )     (63,901 )     (78,827 )     (91,689 )       (93,102 )
  Total Loans   $   24,178,381     $   24,037,926   $   23,666,199   $   23,368,417   $   23,118,274     $   23,037,382  
                 
  (1 Includes interest bearing cash and cash equivalents, investment securities at amortized cost, loans held for sale, and total loans and leases.
  (2 The tables in this earnings release present the computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail.
  (3 Excludes unamortized unrealized gains recorded in accumulated other comprehensive income related to available for sale securities transferred to held to maturity.
  (4 Originated loans represent total loans excluding acquired loans. 
  (5 Carrying value of acquired loans plus the principal not expected to be collected. 
  (6 Principal on acquired loans not expected to be collected. 

 
First Niagara Financial Group, Inc.                          
Average Balance Sheet and Related Tax Equivalent Yields & Rates                  
(in millions)                          
      For the three months ended      
      March 31, 2016 December 31, 2015 March 31, 2015      
       Average  Interest (1)  Yields   Average  Interest (1)  Yields   Average  Interest (1)  Yields       
       Balances     and Rates (1)  Balances     and Rates (1)  Balances     and Rates (1)      
                             
Interest-earning assets:                          
Loans and leases (2)                          
Commercial:                          
Real estate   $   8,625   $   79     3.61 % $   8,476   $   77     3.57 % $   8,263   $   74     3.60 %      
Business       6,062       52       3.42        5,971       50       3.28        5,797       50       3.43         
Total commercial loans       14,687       131       3.53        14,447       127       3.45        14,060       124       3.53         
Consumer:                          
Residential real estate       3,346       31       3.65        3,346       31       3.65        3,338       32       3.78         
Home equity       3,066       30       3.93        3,052       29       3.80        2,939       28       3.91         
Indirect auto       2,420       18       2.91        2,369       17       2.90        2,187       15       2.79         
Credit cards       297       9       11.80        305       9       11.45        311       9       11.74         
Other consumer       242       4       8.57        250       5       8.50        275       6       8.49         
Total consumer loans       9,371       92       3.94        9,322       91       3.88        9,050       90       4.02         
  Total loans and leases       24,058       223       3.73        23,769       218       3.65        23,110       214       3.75         
Residential MBS       7,864       48       2.43        7,705       47       2.44        7,180       45       2.49         
Commercial MBS       997       12       4.68        1,126       12       4.31        1,404       11       3.26         
Other investment securities (3)       3,513       30       3.53        3,540       31       3.47        3,554       31       3.52         
  Total securities, at amortized cost       12,374       90       2.92        12,371       90       2.90        12,138       87       2.88         
Money market and other investments       205       1       1.37        88       1       2.29        158       -        1.01         
Total interest-earning assets       36,637   $   314     3.45 %     36,228   $   309     3.38 %     35,406   $   302     3.45 %      
Goodwill and other intangibles       1,394           1,398           1,414            
Other noninterest-earning assets       1,929           1,951           1,887            
                             
Total assets   $   39,960       $   39,577       $   38,707            
                             
Interest-bearing liabilities:                           
Deposits                          
Savings accounts   $   3,371   $   1     0.09 % $   3,364   $   1     0.09 % $   3,432   $   -      0.08 %      
Interest-bearing checking       5,362       -        0.03        5,333       -        0.03        5,001       -        0.03         
Money market deposits        10,725       9       0.32        10,719       8       0.30        10,132       7       0.26         
Certificates of deposit        3,726       9       0.97        3,515       8       0.89        3,778       8       0.84         
Total interest bearing deposits       23,184       19     0.32 %     22,931       17     0.30 %     22,343       15     0.28 %      
Borrowings                          
Short-term borrowings       3,815       7     0.72 %     4,014       6     0.56 %     5,125       6     0.46 %      
Long-term borrowings       2,416       15       2.62        1,971       14       2.89        1,027       13       4.98         
Total borrowings        6,231       22       1.46        5,985       20       1.33        6,152       19       1.21         
Total interest-bearing liabilities        29,415   $   41     0.56 %     28,916   $   37     0.51 %     28,495   $   34     0.48 %      
Noninterest-bearing deposits        5,666           5,868           5,430            
Other noninterest-bearing liabilities        725           640           654            
Total liabilities        35,806           35,424           34,579            
Total stockholders' equity       4,154           4,153           4,128            
Total liabilities and stockholders' equity   $   39,960       $   39,577       $   38,707            
                             
Net interest income (FTE)     $   273       $   272       $   268          
Taxable Equivalent Adjustment (1)         5           5           5          
                             
 Total core deposits    $   25,124   $   10     0.15 % $   25,284   $   9     0.15 % $   23,995   $   7     0.13 %      
 Total transactional deposits        11,028       -      0.02 %     11,201       -      0.02 %     10,431       -      0.01 %      
 Total deposits        28,850       19     0.26 %     28,799       17     0.24 %     27,773       15     0.22 %      
                             
Tax equivalent net interest rate spread         2.89 %       2.87 %       2.97 %      
Tax equivalent net interest rate margin         3.00 %       2.98 %       3.07 %      
                             
(1 Tax equivalent interest income is calculated using a 35% tax rate.       
(2 )Includes nonaccrual loans.       
(3 Includes debt securities, collateralized loan obligations, asset-backed securities, FHLB and FRB common stock, and other investment securities.  

 
First Niagara Financial Group, Inc.                    
Allowance for Loans and Lease Losses & Asset Quality                    
(in thousands)                    
              2016       2015       2014    
             First     Fourth   Third   Second   First     Fourth   
             Quarter     Quarter   Quarter   Quarter   Quarter     Quarter   
                             
Beginning balance   $   242,036     $   238,700   $   235,600   $   231,138   $   234,251     $   222,753    
Net loan (charge-offs) recoveries:                    
  Commercial real estate   $   (254 )   $   (1,476 ) $   (2,686 ) $   (5,525 ) $   (5,825 )   $   (2,008 )  
  Commercial business       (3,903 )       (10,441 )     (6,286 )     (3,513 )     (4,178 )       (12,650 )  
  Residential real estate       (135 )       (94 )     (230 )     (197 )     (266 )       (476 )  
  Home equity       (995 )       (723 )     (1,056 )     (1,367 )     (1,526 )       (1,406 )  
  Indirect auto       (2,030 )       (2,122 )     (1,743 )     (1,342 )     (1,226 )       (2,241 )  
  Credit cards       (2,654 )       (2,450 )     (2,215 )     (2,522 )     (2,450 )       (2,464 )  
  Other consumer       (1,784 )       (1,758 )     (1,952 )     (1,528 )     (1,807 )       (1,457 )  
        Total net loan charge-offs   $   (11,755 )   $   (19,064 ) $   (16,168 ) $   (15,994 ) $   (17,278 )   $   (22,702 )  
Provision for loan losses       22,519         22,400       19,268       20,456       14,165         34,200    
    Ending balance   $   252,800     $   242,036   $   238,700   $   235,600   $   231,138     $   234,251    
                             
Supplemental information                    
Allowance to loans     1.05 %     1.01 %   1.01 %     1.01 %     1.00 %       1.02 %  
Allowance for originated loans to originated loans (1)     1.16 %     1.12 %   1.13 %     1.15 %     1.15 %       1.18 %  
                             
Net charge-offs (recoveries) to average loans (annualized)                  
  Commercial real estate       0.01 %       0.07 %   0.13 %     0.27 %     0.29 %       0.10 %  
  Commercial business       0.26 %       0.70 %   0.42 %     0.24 %     0.29 %       0.87 %  
    Total commercial loans       0.11 %       0.33 %   0.25 %     0.26 %     0.28 %       0.42 %  
  Residential real estate       0.02 %       0.01 %   0.03 %     0.02 %     0.03 %       0.06 %  
  Home equity       0.13 %       0.09 %   0.14 %     0.18 %     0.21 %       0.19 %  
  Indirect auto       0.34 %       0.36 %   0.30 %     0.24 %     0.22 %       0.42 %  
  Credit cards       3.57 %       3.21 %   2.90 %     3.32 %     3.16 %       3.13 %  
  Other consumer       2.95 %       2.81 %   3.06 %     2.35 %     2.63 %       2.06 %  
    Total consumer loans       0.33 %       0.31 %   0.32 %     0.31 %     0.33 %       0.36 %  
  Total loans       0.20 %       0.32 %   0.28 %     0.28 %     0.30 %       0.40 %  
                             
Net charge-offs (recoveries) of originated loans to average originated loans (annualized) (1)            
  Commercial real estate       0.00 %       0.08 %   0.14 %     0.31 %     0.24 %       0.06 %  
  Commercial business       0.26 %       0.72 %   0.44 %     0.25 %     0.31 %       0.93 %  
    Total commercial loans       0.11 %       0.36 %   0.27 %     0.28 %     0.27 %       0.44 %  
  Residential real estate       0.02 %       0.02 %   0.04 %     0.04 %     0.05 %       0.09 %  
  Home equity       0.16 %       0.14 %   0.14 %     0.17 %     0.16 %       0.15 %  
  Indirect auto       0.34 %       0.36 %   0.30 %     0.24 %     0.22 %       0.42 %  
  Credit cards       3.57 %       3.21 %   2.90 %     3.32 %     3.16 %       3.13 %  
  Other consumer       2.95 %       2.81 %   3.06 %     2.35 %     2.63 %       2.06 %  
    Total consumer loans       0.40 %       0.39 %   0.38 %     0.37 %     0.38 %       0.44 %  
  Total loans       0.22 %       0.37 %   0.31 %     0.31 %     0.31 %       0.44 %  
                             
Nonperforming loans:                    
  Originated (1):                    
  Commercial real estate   $   37,087     $   44,438   $   54,699   $   60,021   $   65,655     $   53,164    
  Commercial business       71,999         56,382       45,389       42,979       54,506         45,201    
  Residential real estate       30,234         31,513       32,455       32,877       32,791         33,652    
  Home equity       35,701         35,561       34,191       27,092       26,163         23,749    
  Indirect auto       16,536         15,131       13,795       13,066       13,399         12,616    
  Other consumer       5,093         5,201       5,047       4,917       5,065         5,140    
    Total originated nonperforming loans       196,650         188,226       185,576       180,952       197,579         173,522    
    Total acquired nonperforming loans (2)       24,874         25,335       25,365       26,553       30,236         30,223    
      Total nonperforming loans       221,524         213,561       210,941       207,505       227,815         203,745    
  Real estate owned       16,457         16,063       18,359       17,397       19,128         20,541    
    Total nonperforming assets (3)   $   237,981     $   229,624   $   229,300   $   224,902   $   246,943     $   224,286    
                             
Accruing troubled debt restructurings (TDR)   $   63,659     $   62,630   $   60,941   $   64,643   $   64,401     $   67,102    
Loans 90 days past due still accruing (4)       57,259         67,718       69,879       78,279       87,213         93,903    
Total classified loans (5)       601,539         602,912       591,771       592,148       615,518         609,316    
Total criticized loans (6)   $   954,480     $   944,779   $   858,243   $   938,951   $   990,656     $   1,041,050    
                             
Total nonperforming loans to loans     0.92 %     0.89 %   0.89 %     0.89 %     0.99 %       0.88 %  
Total nonperforming originated loans to originated loans (1)   0.92 %     0.89 %   0.90 %     0.91 %     1.01 %       0.90 %  
Total nonperforming assets to loans and real estate owned   0.98 %     0.95 %   0.97 %     0.96 %     1.07 %       0.97 %  
Total nonperforming assets to assets     0.59 %     0.58 %   0.58 %     0.58 %     0.63 %       0.58 %  
Allowance to nonperforming loans     114.1 %     113.3 %   113.2 %     113.5 %     101.5 %       115.0 %  
                             
Originated loans (1)   $   21,361,753     $   21,101,040   $   20,591,532   $   19,929,719   $   19,528,609     $   19,295,553    
Acquired loans (7)       2,873,372         2,998,530       3,138,568       3,517,525       3,681,354         3,834,931    
Credit related discount on acquired loans (8)       (56,744 )       (61,644 )     (63,901 )     (78,827 )     (91,689 )       (93,102 )  
  Total Loans   $   24,178,381     $   24,037,926   $   23,666,199   $   23,368,417   $   23,118,274     $   23,037,382    
                             
  (1 Originated loans represent total loans excluding acquired loans.   
  (2 Nonperforming acquired loans include certain lines of credit that are considered nonaccruing.   
  (3 Does not include a $5.5 million nonperforming loan that was classified as held for sale at March 31, 2015, which was sold and for which we received the proceeds on April 2, 2015.  
  (4 Includes acquired loans that were originally recorded at fair value upon acquisition, credit card loans, and loans that have matured which are in the process of collection.  
  (5 Includes consumer loans, which are considered classified when they are 90 days or more past due. Classified loans include substandard, doubtful, and loss, which are consistent with regulatory definitions, and as described in Item 1, "Business", under the heading "Asset Quality Review" in our Annual Report on 10-K for the year ended December 31, 2015.  
  (6 Criticized loans includes consumer loans when they are 90 days or more past due.  Criticized loans include special mention, substandard, doubtful, and loss.  
  (7 Represents the carrying value of acquired loans plus the principal not expected to be collected.   
  (8 Represent principal on acquired loans not expected to be collected.   

 
First Niagara Financial Group, Inc.                  
Key Statistics                  
(Risk weighted assets in millions; share counts in thousands)              
                       
          2016       2015       2014  
        March 31,   December 31, September 30, June 30, March 31,   December 31,
                       
First Niagara Financial Group, Inc. capital ratios (1)(2):                  
  Tier 1 risk based capital     10.12 %     10.08 %   10.05 %   10.03 %   10.02 %     9.81 %
  Total risk based capital     12.09 %     12.01 %   11.97 %   11.96 %   11.95 %     11.75 %
  Common equity tier 1 capital     8.58 %     8.55 %   8.52 %   8.50 %   8.48 %     N/A  
  Tier 1 common capital (3)     N/A       N/A     N/A     N/A     N/A       8.20 %
  Leverage     7.55 %     7.62 %   7.66 %   7.60 %   7.56 %     7.50 %
  Equity to assets     10.36 %     10.34 %   10.50 %   10.55 %   10.60 %     10.62 %
  Tangible common equity to tangible assets (3)     6.25 %     6.21 %   6.32 %   6.32 %   6.34 %     6.30 %
  Total risk weighted assets   $   28,809     $   28,881   $   28,716   $   28,445   $   28,152     $   28,186  
                       
First Niagara Bank, N.A capital ratios (1)(2):                  
  Tier 1 risk based capital     10.73 %     10.65 %   10.67 %   10.66 %   10.65 %     10.48 %
  Total risk based capital     11.67 %     11.55 %   11.56 %   11.54 %   11.53 %     11.37 %
  Common equity tier 1 capital     10.73 %     10.65 %   10.67 %   10.66 %   10.65 %    N/A 
  Leverage     8.00 %     8.05 %   8.12 %   8.07 %   8.03 %     8.01 %
  Total risk weighted assets   $   28,742     $   28,813   $   28,632   $   28,359   $   28,068     $   28,146  
                       
Number of branches       392         392       394       394       394         411  
Full time equivalent employees       5,322         5,428       5,397       5,364       5,322         5,572  
                       
Share information and per share metrics:                  
  Common shares outstanding       354,977         354,762       354,788       354,890       353,717         353,388  
  Preferred shares outstanding       14,000         14,000       14,000       14,000       14,000         14,000  
  Treasury shares       11,025         11,240       11,214       11,112       12,285         12,614  
  Market price (NASDAQ: FNFG):   $   9.68     $   10.85   $   10.21   $   9.44   $   8.84     $   8.43  
  Book value per common share (4)       10.84         10.78       10.82       10.77       10.80         10.71  
  Tangible book value per common share (3)(4)       6.88         6.81       6.84       6.77       6.78         6.67  
  Price/Book     89.30 %     100.65 %   94.36 %   87.65 %   81.85 %     78.71 %
  Price/Tangible book (1)     140.70 %     159.32 %   149.27 %   139.44 %   130.38 %     126.39 %
  Common stock dividends   $   0.08     $   0.08   $   0.08   $   0.08   $   0.08     $   0.08  
  Preferred stock dividends       0.54         0.54       0.54       0.54       0.54         0.54  
  Dividend payout ratio     72.73 %     66.67 %   53.33 %   53.33 %   66.67 %     47.06 %
  Dividend yield (annualized)     3.32 %     2.93 %   3.11 %   3.40 %   3.67 %     3.77 %
                       
(1 Represents an estimate as of March 31, 2016.  All preceding quarters represent actual amounts.
(2 Basel III Transitional rules became effective for us on January 1, 2015.  Ratios and amounts presented prior to March 31, 2015 are calculated under Basel I rules.  As of March 31, 2015, the ratios presented are calculated under the Basel III Standardized Transitional Approach.  Common equity tier 1 capital under Basel III replaced Tier 1 common capital under Basel I.  Prior to Basel III becoming effective on January 1, 2015, tier 1 common capital under Basel I was a non-GAAP financial measure.
(3 The tables in this earnings release present computation of earnings and certain other ratios using non-GAAP financial measures, which we believe provide investors with information that is useful in understanding our financial performance and position. See Appendix A for further detail.
(4 Share count excludes unallocated ESOP shares prior to January 1, 2015 and unvested restricted stock shares.

 
First Niagara Financial Group, Inc.                    
Appendix A - Non-GAAP Reconciliation                    
(in thousands, except per share amounts)                    
                           
            2016       2015       2014    
           First     Fourth   Third   Second   First     Fourth   
           Quarter     Quarter   Quarter   Quarter   Quarter     Quarter   
Financial ratios computed on an operating basis (1) :                    
Earnings per basic share   $   0.14     $   0.16   $   0.15   $   0.15   $   0.15     $   0.15    
Earnings per diluted share   $   0.14     $   0.15   $   0.15   $   0.15   $   0.15     $   0.15    
Weighted average shares outstanding - basic (2)       351,372         351,306       351,293       351,126       350,741         350,444    
Weighted average shares outstanding - diluted (2)       353,965         353,797       353,248       352,791       352,621         352,152    
Noninterest income as a percentage of net revenue (3)     22.81 %     25.12 %   24.05 %   24.76 %   23.83 %     22.24 %  
Pre-tax, pre-provision income       104,780         108,531       101,501       101,818       101,667         98,714    
Pre-tax, pre-provision income per diluted share   $   0.30     $   0.31   $   0.29   $   0.29   $   0.29     $   0.28    
Pre-tax, pre-provision return on average assets     1.05 %     1.09 %   1.03 %   1.05 %   1.07 %     1.02 %  
Net interest margin (4)     3.00 %     2.98 %   2.98 %   3.02 %   3.07 %     3.11 %  
Interest yield on average loans (4)     3.73 %     3.65 %   3.64 %   3.73 %   3.75 %     3.78 %  
Rate paid on interest-bearing liabilities     0.56 %     0.51 %   0.50 %   0.49 %   0.48 %     0.45 %  
Efficiency ratio     69.8 %     69.5 %   70.7 %   70.9 %   70.5 %     71.5 %  
Effective tax rate     30.2 %     26.6 %   26.0 %   24.7 %   30.0 %     3.7 %  
Return on average assets     0.58 %     0.63 %   0.61 %   0.63 %   0.65 %     0.63 %  
Return on average equity     5.56 %     6.00 %   5.78 %   5.90 %   6.12 %     5.82 %  
Return on average tangible equity (5)     8.37 %     9.05 %   8.73 %   8.94 %   9.30 %     8.85 %  
Return on average common equity     5.26 %     5.75 %   5.51 %   5.63 %   5.85 %     5.54 %  
Return on average tangible common equity (6)     8.29 %     9.07 %   8.72 %   8.94 %   9.34 %     8.85 %  
                           
Reconciliation of noninterest expense on operating basis to reported noninterest expense (1) :                    
  Total noninterest expense on operating basis (Non-GAAP)   $   241,879     $   247,419   $   245,433   $   247,899   $   243,521     $   248,246    
    Merger and acquisition integration expenses       13,473         14,198       -        -        -          -     
    Restructuring charges       -          3,378       -        -        17,517         9,066    
    Deposit account remediation       -          -        -        -        -         (23,000 )  
  Total reported noninterest expense (GAAP)   $   255,352     $   264,995   $   245,433   $   247,899   $   261,038     $   234,312    
                           
Reconciliation of net operating income to net income (1) :                    
  Net operating income (Non-GAAP)   $   57,448     $   62,813   $   60,482   $   61,010   $   62,246     $   60,697    
  Nonoperating income and expenses, net of tax:                    
    Merger and acquisition integration expenses       9,141         9,919       -        -        -          -     
    Restructuring charges       -          2,094       -        -        10,861         6,364    
    Deposit account remediation       -          -        -        -        -         (14,734 )  
      Total nonoperating expenses, net of tax       9,141         12,013       -        -        10,861         (8,370 )  
  Net income (GAAP)   $   48,307     $   50,800   $   60,482   $   61,010   $   51,385     $   69,067    
                           
Reconciliation of net operating income available to common stockholders to net income available to common stockholders (1) :                    
  Net operating income available to common stockholders (Non-GAAP)   $   49,901     $   55,266   $   52,935   $   53,463   $   54,699     $   53,150    
  Nonoperating income and expenses, net of tax:                    
    Merger and acquisition integration expenses       9,141         9,919       -        -        -         -     
    Restructuring charges       -          2,094       -        -        10,861         6,364    
    Deposit account remediation       -          -        -        -        -         (14,734 )  
      Total nonoperating income and expenses, net of tax       9,141         12,013       -        -        10,861         (8,370 )  
  Net income available to common st