- Strong credit quality and no sub-prime exposure
- Market driven deposit pricing furthers margin compression - Performance improvement initiatives accelerated to enhance future results
- EPS of 19 cents excluding severance and related costs
LOCKPORT, N.Y., April 24 /-/ -- First Niagara Financial Group, Inc. (Nasdaq: FNFG), today announced 2007 first quarter net income of $18.5 million, or $0.17 per diluted share, compared to 2006 fourth quarter net income of $20.9 million, or $0.19 per diluted share and $22.6 million, or $0.21 per diluted share for the 2006 first quarter. Results in the 2007 first quarter include the initial impact of the acceleration of performance improvement initiatives totaling $2.4 million, which decreased net income per diluted share by two cents. As referenced in the table below, excluding those charges and other severance costs in prior quarters, 2007 first quarter net income was $20.0 million, or $0.19 per diluted share, compared to 2006 fourth quarter earnings of $22.9 million, or $0.21 per diluted share and $22.6 million, or $0.21 per diluted share for the 2006 first quarter.
"First quarter results reflect solid core performance, in a challenging operating environment. Given the additional pressure on net interest income from the continuing yield curve inversion and rising deposit costs, we are very pleased with the further improvement in our earning asset mix, strong credit quality, and a high level of non-interest income, said John R. Koelmel, President & CEO. Despite the very positive activity levels in many areas of our business however, the affects of the market challenge suggest that revenue growth in 2007 will be difficult. As a result, we have accelerated our performance improvement initiatives to more optimally align and deploy all of our resources to improve financial performance and more effectively position us to compete for the long term."
The performance improvement initiatives enacted to date include staff reductions, reconfiguring the delivery of trust services and the elimination of redundant back office functions. The Company is also consolidating additional branch locations in Eastern New York. First quarter charges related to these initiatives totaled $2.4 million, primarily related to employee severance. Staff reductions associated with these actions are expected to result in a 5% to 6% decrease in personnel from levels reported as of year-end 2006. Furthermore, building on the actions already underway to optimize its retail delivery system, the Company anticipates additional branch consolidations and is considering the divestiture of branch locations in non- strategic markets. Also, upon completion of a broad based strategic space planning analysis, the Company is evaluating the sale of excess real estate. These additional actions are expected to result in further restructuring costs in the second quarter, with the benefits of all actions including those still under consideration, beginning to be realized in the second half of this year.
Reported Results (including severance and related costs)
Q1 2007 Q4 2006 Q1 2006
Noninterest expense $54.6 million $54.8 million $51.9 million
Net income $18.5 million $20.9 million $22.6 million
Net income per
diluted share $0.17 $0.19 $0.21
Non-GAAP Results (excluding severance and related costs)
Q1 2007 Q4 2006 Q1 2006
Noninterest expense $52.2 million $51.5 million $51.9 million
Net income $20.0 million $22.9 million $22.6 million
Net income per
diluted share $0.19 $0.21 $0.21
The table above summarizes the Company's operating results excluding certain severance and related charges. The Company believes these 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 costs enables management to perform a more effective evaluation and comparison of the Company's results and assess performance in relation to the Company's ongoing operations.
Financial Review
In the first quarter of 2007, average total loans increased $15.5 million from the linked quarter to $5.67 billion, primarily driven by a 25% annualized increase in total average commercial business loans. Average commercial real estate balances of $2.0 billion remained consistent with the linked quarter, a notable achievement given the unusually high level of payoffs that occurred in the fourth quarter of 2006. Reflecting seasonal demand, average home equity balances increased an annualized 2% from the linked quarter while average residential mortgage balances declined an annualized 2%. The yield on earning assets was 6.16%, consistent with the linked quarter, excluding the benefit of prepayment and other fees related to commercial mortgage payoffs realized in the prior period.
Total average deposits of $5.04 billion at March 31, 2007, were consistent with fourth quarter levels, yet reflect continued migration from savings and noninterest-bearing deposits to higher cost certificate of deposits and money market accounts. Average balances in those accounts increased 6% and 3%, respectively, on an annualized basis during the period. In spite of our expectations that deposit pricing would begin to stabilize, market pressures have resulted in additional rate increases. Therefore, the average rate paid on deposits for the quarter increased 9 basis points to 2.19% from 2.10% for the prior three month period. As a result, we experienced further margin compression during the quarter as the taxable net interest margin declined to 3.37%.
Credit trends remained favorable during the quarter. In particular, and reflective of our adherence to traditional underwriting methods, First Niagara has no exposure to subprime or Alt-A loans. Non-performing loans of $21.1 million at March 31, 2007 represent .37% of total loans, which compares to $15.5 million, or .27% of total loans, at year-end 2006 and $20.6 million, or .38% of the total portfolio, a year ago. Net charge-offs to average loans were .18% annualized for the quarter. At March 31, 2007, the allowance for credit losses was 1.24% of total loans and 337% of non-performing loans, compared to 1.27% and 463% respectively, at year-end 2006.
Noninterest income for the first quarter of 2007 of $27.9 million increased $1.0 million from the linked quarter, excluding the benefit in the prior period of the gain on the sale of a vacant branch facility in Eastern New York. Compared to the linked period, risk management revenue increased 9% primarily reflecting the benefit of solid new business growth as well as the impact of the Gernold Agency acquired on January 1, 2007, which offset the effect of continued industry softening in insurance renewal rates. Banking services income experienced the normal seasonal decline from the prior period. First quarter 2007 noninterest income represented 33% of net revenues.
Noninterest expenses, excluding severance and other related costs, of $52.2 million were comparable to the 2006 fourth quarter total of $51.5 million. While the current period includes the additional operating expenses associated with the Gernold Agency, it reflects the impact of the Company's continuing focus on limiting future expense growth.
The Company repurchased 3.1 million shares of its common stock at an average price of $14.50 per share for the three months ended March 31, 2007. At the end of the 2007 first quarter, 2.5 million shares were available for repurchase under the current authorization, and as previously announced, the Board of Directors authorized an additional 5% share repurchase program on April 17, 2007.
Mr. Koelmel concluded, "In spite of the challenges posed by the current environment, we are very confident in First Niagara's long term prospects based on the strength of our franchise, diverse revenue stream and the strong growth potential in many areas of our business. Although the yield curve is expected to remain inverted to flat for the remainder of 2007 and further constrain revenue growth, we nonetheless look for improvement in earnings in the second half of the year as we reduce operating expenses and focus our resources and energies on our best and most profitable growth opportunities. We will also continue to effectively and actively manage our balance sheet and capital to strengthen our financial performance. Accelerating our performance improvement initiatives underscores our commitment to emerge as a stronger, more profitable organization, even better positioned for long-term success."
Profile - First Niagara Financial Group, Inc., through its wholly owned subsidiary First Niagara Bank, has assets of $8.0 billion and deposits of $5.8 billion. First Niagara Bank is a full-service, community-oriented bank that provides financial services to individuals, families and businesses through 120 branches and Regional Market Centers across Upstate New York.
Conference Call - A conference call will be held at 11 a.m. Eastern Time on Tuesday April 24, 2007 to discuss the Company's financial results as well as the Company's strategy and future outlook. Those wishing to participate in the call may dial toll-free 1-877-709-8150 (Event #7). A replay of the call will be available until May 8, 2007 by dialing 1-877-660-6853, account number 240, conference number 236096.
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.
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data
2007 2006
March December September
31, 31, 30,
SELECTED FINANCIAL DATA
(Amounts in thousands)
Securities available for sale $1,095,012 1,060,422 1,204,048
Loans and leases:
Commercial:
Real estate $2,065,472 2,034,709 2,037,311
Business $611,064 561,323 546,976
Total commercial loans $2,676,536 2,596,032 2,584,287
Residential real estate $2,224,704 2,252,473 2,254,294
Home equity $472,714 470,714 463,773
Other consumer $151,885 163,824 178,131
Specialized lending $163,319 155,032 156,281
Net deferred costs and discounts $27,747 27,350 26,217
Total loans and leases $5,716,905 5,665,425 5,662,983
Allowance for credit losses $71,051 71,913 72,697
Loans and leases, net $5,645,854 5,593,512 5,590,286
Goodwill and other intangibles $753,296 748,103 752,256
Total assets $7,982,589 7,945,526 8,011,500
Total interest-earning assets $6,903,315 6,837,367 6,934,014
Deposits:
Savings $936,496 962,482 1,002,389
Interest-bearing checking $511,169 521,751 519,194
Money market deposits $1,394,016 1,294,834 1,229,209
Noninterest-bearing $623,504 647,108 628,321
Certificates $2,333,891 2,283,561 2,202,361
Total deposits $5,799,076 5,709,736 5,581,474
Borrowings $716,463 747,554 919,398
Total interest-bearing liabilities $5,892,035 5,810,182 5,872,551
Net interest-earning assets $1,011,280 1,027,185 1,061,463
Stockholders' equity $1,353,792 1,387,197 1,383,878
Tangible equity (1) $600,496 639,094 631,622
Securities available for sale fair
value adjustment included in
stockholders' equity $(11,161) (14,150) (15,671)
Common shares outstanding (2) 103,991 106,753 106,701
Treasury shares 11,925 9,326 9,250
Total loans serviced for others $398,166 393,831 385,107
CAPITAL
Tier 1 risk based capital 10.69% 10.91% 12.63%
Total risk based capital 11.94% 12.16% 13.86%
Tier 1 (core) capital 7.75% 7.73% 8.99%
Tangible capital 7.75% 7.73% 8.99%
Equity to assets 16.96% 17.46% 17.27%
Tangible equity to tangible assets(1) 8.31% 8.88% 8.70%
Book value per share (2) $13.02 12.99 12.97
Tangible book value per share (1)(2) $5.77 5.99 5.92
ASSET QUALITY DATA
(Amounts in thousands)
Non-performing loans:
Commercial real estate $6,937 4,513 7,196
Commercial business $5,653 2,599 2,960
Residential real estate $3,713 4,490 3,450
Home equity $1,088 819 667
Other consumer $1,816 1,356 633
Specialized lending $1,880 1,751 2,225
Total non-performing loans $21,087 15,528 17,131
Real estate owned $553 632 659
Total non-performing assets $21,640 16,160 17,790
Net loan charge-offs $2,462 2,085 1,264
Net charge-offs to average loans
(annualized) 0.18% 0.15% 0.09%
Provision for credit losses $1,600 1,300 1,300
Provision for credit losses as a
percentage of average loans
(annualized) 0.11% 0.09% 0.09%
Total non-performing loans to total
loans 0.37% 0.27% 0.30%
Total non-performing assets as a
percentage of total assets 0.27% 0.20% 0.22%
Allowance for credit losses to total
loans 1.24% 1.27% 1.28%
Allowance for credit losses
to non-performing loans 336.9% 463.1% 424.4%
Personnel FTE 1,915 1,922 1,891
Number of branches 119 119 119
2006
June 30, March 31,
SELECTED FINANCIAL DATA
(Amounts in thousands)
Securities available for sale 1,317,035 1,489,402
Loans and leases:
Commercial:
Real estate 1,995,287 1,904,305
Business 529,627 504,935
Total commercial loans 2,524,914 2,409,240
Residential real estate 2,245,795 2,209,518
Home equity 446,562 418,719
Other consumer 180,041 182,367
Specialized lending 177,375 164,552
Net deferred costs and discounts 24,617 21,927
Total loans and leases 5,599,304 5,406,323
Allowance for credit losses 72,662 72,441
Loans and leases, net 5,526,642 5,333,882
Goodwill and other intangibles 755,118 757,738
Total assets 8,106,776 8,079,957
Total interest-earning assets 7,043,036 7,016,550
Deposits:
Savings 1,072,017 1,114,004
Interest-bearing checking 513,382 519,158
Money market deposits 1,189,810 1,138,526
Noninterest-bearing 628,478 584,820
Certificates 2,245,620 2,169,837
Total deposits 5,649,307 5,526,345
Borrowings 990,463 1,082,410
Total interest-bearing liabilities 6,011,292 6,023,935
Net interest-earning assets 1,031,744 992,615
Stockholders' equity 1,360,926 1,367,385
Tangible equity (1) 605,808 609,647
Securities available for sale fair
value adjustment included in
stockholders' equity (25,189) (22,562)
Common shares outstanding (2) 106,528 107,721
Treasury shares 9,549 8,276
Total loans serviced for others 377,150 378,665
CAPITAL
Tier 1 risk based capital 11.40% 11.23%
Total risk based capital 12.65% 12.48%
Tier 1 (core) capital 7.92% 7.57%
Tangible capital 7.92% 7.57%
Equity to assets 16.79% 16.92%
Tangible equity to tangible assets(1) 8.24% 8.33%
Book value per share (2) 12.78 12.69
Tangible book value per share (1)(2) 5.69 5.66
ASSET QUALITY DATA
(Amounts in thousands)
Non-performing loans:
Commercial real estate 7,482 8,122
Commercial business 2,458 3,074
Residential real estate 3,904 4,905
Home equity 620 678
Other consumer 592 742
Specialized lending 2,473 3,089
Total non-performing loans 17,529 20,610
Real estate owned 1,039 986
Total non-performing assets 18,568 21,596
Net loan charge-offs 1,335 2,200
Net charge-offs to average loans
(annualized) 0.10% 0.17%
Provision for credit losses 1,556 2,300
Provision for credit losses as a
percentage of average loans
(annualized) 0.11% 0.18%
Total non-performing loans to total
loans 0.31% 0.38%
Total non-performing assets as a
percentage of total assets 0.23% 0.27%
Allowance for credit losses to total
loans 1.30% 1.34%
Allowance for credit losses
to non-performing loans 414.5% 351.5%
Personnel FTE 1,939 1,958
Number of branches 122 120
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2007 2006
First Year Ended Fourth
Quarter December 31, Quarter
SELECTED OPERATIONS DATA
(Amounts in thousands)
Interest income $103,198 415,830 106,163
Interest expense $46,998 169,349 46,697
Net interest income $56,200 246,481 59,466
Provision for credit losses $1,600 6,456 1,300
Net interest income after
provision for credit losses $54,600 240,025 58,166
Noninterest income:
Banking services $8,995 38,661 9,766
Risk management services $11,704 44,133 10,753
Employee benefits administration $1,194 4,002 1,172
Wealth management services $2,321 8,334 1,938
Lending and leasing $1,904 7,238 1,914
Bank-owned life insurance $1,055 3,162 885
Other $739 5,688 1,475
Total noninterest income $27,912 111,218 27,903
Noninterest expense:
Salaries and benefits $32,892 123,795 32,346
Occupancy and equipment $5,982 22,147 5,695
Technology and communications $4,839 20,303 5,083
Marketing and advertising $1,688 7,154 1,800
Professional services $809 3,921 1,060
Amortization of intangibles $2,691 11,802 2,838
Other $5,740 22,729 5,953
Total noninterest expense $54,641 211,851 54,775
Income before income taxes $27,871 139,392 31,294
Income taxes $9,337 47,533 10,398
Net income $18,534 91,859 20,896
STOCK AND RELATED PER SHARE DATA
Net income per share:
Basic $0.18 0.86 0.20
Diluted $0.17 0.85 0.19
Cash dividends $0.13 0.46 0.12
Dividend payout ratio 72.22% 53.49% 60.00%
Dividend yield (annualized) 3.79% 3.10% 3.20%
Market price (NASDAQ: FNFG):
High $15.07 15.43 15.43
Low $13.53 13.38 13.89
Close $13.91 14.86 14.86
SELECTED RATIOS
Net income (annualized):
Return on average assets 0.95% 1.14% 1.04%
Return on average equity 5.47% 6.67% 5.96%
Return on average tangible equity (1) 12.10% 14.75% 12.93%
Noninterest income as a percentage
of net revenue 33.18% 31.09% 31.94%
Efficiency ratio - Consolidated 65.0% 59.2% 62.7%
- Banking
segment (3) 61.7% 54.5% 59.5%
Net loan charge-offs $2,462 6,884 2,085
Net charge-offs to average loans
(annualized) 0.18% 0.12% 0.15%
Provision for credit losses as a
percentage of average loans
(annualized) 0.11% 0.12% 0.09%
2006
Third Second First
Quarter Quarter Quarter
SELECTED OPERATIONS DATA
(Amounts in thousands)
Interest income 105,026 104,011 100,630
Interest expense 44,400 40,175 38,077
Net interest income 60,626 63,836 62,553
Provision for credit losses 1,300 1,556 2,300
Net interest income after
provision for credit losses 59,326 62,280 60,253
Noninterest income:
Banking services 9,861 9,983 9,051
Risk management services 10,855 11,705 10,820
Employee benefits administration 1,012 923 895
Wealth management services 1,990 2,133 2,273
Lending and leasing 1,608 1,969 1,747
Bank-owned life insurance 774 756 747
Other 3,502 333 378
Total noninterest income 29,602 27,802 25,911
Noninterest expense:
Salaries and benefits 31,436 30,411 29,602
Occupancy and equipment 5,538 5,241 5,673
Technology and communications 5,117 5,109 4,994
Marketing and advertising 1,775 1,792 1,787
Professional services 929 1,069 863
Amortization of intangibles 2,890 2,994 3,080
Other 5,410 5,456 5,910
Total noninterest expense 53,095 52,072 51,909
Income before income taxes 35,833 38,010 34,255
Income taxes 12,275 13,212 11,647
Net income 23,558 24,798 22,608
STOCK AND RELATED PER SHARE DATA
Net income per share:
Basic 0.22 0.23 0.21
Diluted 0.22 0.23 0.21
Cash dividends 0.12 0.11 0.11
Dividend payout ratio 54.55% 47.83% 52.38%
Dividend yield (annualized) 3.26% 3.15% 3.04%
Market price (NASDAQ: FNFG):
High 15.20 14.74 15.16
Low 13.54 13.44 13.38
Close 14.62 14.02 14.66
SELECTED RATIOS
Net income (annualized):
Return on average assets 1.16% 1.23% 1.14%
Return on average equity 6.79% 7.27% 6.67%
Return on average tangible equity (1) 15.02% 16.28% 14.88%
Noninterest income as a percentage
of net revenue 32.81% 30.34% 29.29%
Efficiency ratio - Consolidated 58.8% 56.8% 58.7%
- Banking
segment (3) 54.1% 50.6% 53.9%
Net loan charge-offs 1,264 1,335 2,200
Net charge-offs to average loans
(annualized) 0.09% 0.10% 0.17%
Provision for credit losses as a
percentage of average loans
(annualized) 0.09% 0.11% 0.18%
First Niagara Financial Group, Inc.
Summary of Quarterly Financial Data (Cont'd)
2007 2006
First Year Ended Fourth
Quarter December 31, Quarter
SELECTED AVERAGE BALANCES
(Amounts in thousands)
Securities, at amortized cost 1,086,037 1,377,191 1,159,180
Loans (4)
Commercial:
Real Estate 2,037,544 1,965,832 2,037,440
Business 579,853 521,354 546,023
Total commercial loans 2,617,397 2,487,186 2,583,463
Residential 2,253,212 2,243,116 2,265,240
Home equity 476,591 445,356 474,011
Other consumer 165,462 182,518 174,468
Specialized lending 161,104 165,935 161,105
Total loans 5,673,766 5,524,111 5,658,287
Total interest-earning assets 6,811,941 6,973,137 6,901,629
Goodwill and other intangibles 753,483 754,919 750,516
Total assets 7,884,237 8,028,761 7,963,834
Interest-bearing liabilities:
Savings accounts 943,137 1,057,992 978,337
Checking 497,094 507,215 504,779
Money market deposits 1,306,061 1,200,914 1,297,828
Certificates of deposit 2,290,626 2,202,282 2,255,120
Borrowed funds 769,314 980,429 823,799
Total interest-bearing
liabilities 5,806,232 5,948,832 5,859,863
Noninterest-bearing deposits 589,517 591,306 601,994
Total deposits 5,036,918 4,968,403 5,036,064
Total liabilities 6,509,433 6,651,267 6,572,369
Net interest-earning assets 1,005,709 1,024,305 1,041,766
Stockholders' equity 1,374,804 1,377,494 1,391,465
Tangible equity (1) 621,321 622,575 640,949
Common shares outstanding (2):
Basic 105,294 107,068 106,661
Diluted 106,004 108,027 107,576
SELECTED AVERAGE YIELDS/RATES
(Tax equivalent basis)
Securities, at amortized cost 4.26% 4.10% 4.20%
Loans
Commercial:
Real estate 6.85% 6.93% 7.04%
Business 7.69% 7.58% 7.99%
Total commercial loans 7.04% 7.06% 7.24%
Residential 5.62% 5.57% 5.59%
Home equity 7.00% 6.88% 7.01%
Other consumer 7.42% 7.50% 7.65%
Specialized lending 8.45% 9.59% 8.82%
Total loans 6.52% 6.53% 6.62%
Total interest-earning assets 6.16% 6.04% 6.21%
Savings accounts 0.62% 0.64% 0.64%
Interest-bearing checking 0.53% 0.49% 0.56%
Money market deposits 3.56% 3.08% 3.42%
Certificates of deposit 4.44% 3.90% 4.29%
Borrowed funds 4.38% 3.76% 4.21%
Total interest-bearing
liabilities 3.28% 2.84% 3.16%
Tax equivalent net interest rate
spread 2.88% 3.20% 3.05%
Tax equivalent net interest rate
margin 3.37% 3.61% 3.52%
2006
Third Second First
Quarter Quarter Quarter
SELECTED AVERAGE BALANCES
(Amounts in thousands)
Securities, at amortized cost 1,299,108 1,463,333 1,592,764
Loans (4)
Commercial:
Real estate 2,016,806 1,936,790 1,869,891
Business 539,824 520,368 478,253
Total commercial loans 2,556,630 2,457,158 2,348,144
Residential 2,261,904 2,234,926 2,209,575
Home equity 460,241 435,366 410,952
Other consumer 182,348 186,903 186,486
Specialized lending 163,961 173,566 165,175
Total loans 5,625,084 5,487,919 5,320,332
Total interest-earning assets 6,984,200 7,031,114 6,976,304
Goodwill and other intangibles 753,496 756,491 759,284
Total assets 8,033,309 8,082,794 8,035,848
Interest-bearing liabilities:
Savings accounts 1,039,632 1,086,454 1,129,407
Checking 508,079 505,968 510,083
Money market deposits 1,217,859 1,174,835 1,110,893
Certificates of deposit 2,236,959 2,207,201 2,107,851
Borrowed funds 928,766 1,045,184 1,127,879
Total interest-bearing
liabilities 5,931,295 6,019,642 5,986,113
Noninterest-bearing deposits 614,880 590,754 556,840
Total deposits 5,002,529 4,974,458 4,858,234
Total liabilities 6,657,635 6,715,447 6,660,514
Net interest-earning assets 1,052,905 1,011,472 990,191
Stockholders' equity 1,375,674 1,367,347 1,375,334
Tangible equity (1) 622,178 610,856 616,050
Common shares outstanding (2):
Basic 106,599 106,985 108,042
Diluted 107,548 107,897 109,026
SELECTED AVERAGE YIELDS/RATES
(Tax equivalent basis)
Securities, at amortized cost 4.16% 4.07% 3.99%
Loans
Commercial:
Real estate 6.87% 6.89% 6.90%
Business 7.67% 7.48% 7.12%
Total commercial loans 7.04% 7.02% 6.95%
Residential 5.56% 5.57% 5.56%
Home equity 6.97% 6.84% 6.67%
Other consumer 7.58% 7.44% 7.33%
Specialized lending 8.70% 10.26% 10.51%
Total loans 6.50% 6.53% 6.47%
Total interest-earning assets 6.06% 6.00% 5.89%
Savings accounts 0.64% 0.64% 0.64%
Interest-bearing checking 0.49% 0.46% 0.46%
Money market deposits 3.19% 2.97% 2.66%
Certificates of deposit 4.06% 3.78% 3.43%
Borrowed funds 3.99% 3.18% 3.79%
Total interest-bearing
liabilities 2.97% 2.67% 2.58%
Tax equivalent net interest rate
spread 3.09% 3.33% 3.31%
Tax equivalent net interest rate
margin 3.54% 3.71% 3.68%
(1) Excludes goodwill and other intangible assets.
(2) Excludes unallocated ESOP shares and unvested restricted stock shares.
(3) Includes operating results for the banking activities segment as
defined in the Company's quarterly and annual reports.
(4) Includes nonaccrual loans.
