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First Niagara Financial Group Inc. (FNFG)

  • Mon, Nov. 2, 8:40 AM
    | Mon, Nov. 2, 8:40 AM | Comment!
  • Sat, Oct. 31, 2:04 PM
    • Sizable bank mergers were supposed to be no-brainers as lenders - weighed down by a sluggish lending environment, overlapping branch networks, and high regulatory costs - sought operating synergies. Unfortunately, regulators since the financial crisis have had different ideas about what banks should be doing with their capital (namely, storing it for a rainy day).
    • The M&T/Hudson City merger finally getting approval (after a three-year delay), along with quick green lights for a couple of BB&T purchases began to give investors hope, and this week they got KeyCorp (NYSE:KEY) agreeing to buy First Niagara (NASDAQ:FNFG), and New York Community Bancorp's (NYSE:NYCB) deal for Astoria Financial (NYSE:AF).
    • The reaction: KeyCorp is lower by more than 10% since the news was announced, and First Niagara by more than 6%; NYCB is off nearly 14%, and Astoria 11%.
    • "This level of selloff is not typical," says Sterne Agee's Peter Winter. "Early reactions to bank transactions often are bumpy," says KeyCorp CEO Beth Mooney.
    • CLSA's Mike Mayo calls Key's purchase "strategically good," but isn't a fan of the bank's plan to fund a major portion of the deal with stock. NYCB is also funding much of its buy with stock, and the deal includes a cut in the dividend - maybe not the greatest move considering the income-oriented lean of the bank's investor base, says Winter.
    • Previously: More losses for NYCB as secondary prices; Astoria lower too (Oct. 30)
    • Previously: KeyCorp not expecting M&T-like deal hold-up (Oct. 30)
    | Sat, Oct. 31, 2:04 PM | 21 Comments
  • Fri, Oct. 30, 10:06 AM
    • Speaking on a post-deal conference call, KeyCorp (KEY -6.9%) CEO Beth Mooney says the purchase of First Niagara (FNFG +0.2%) has been discussed with regulators, and she's not expecting it to get held up the way M&T Bancorp's acquisition of Hudson City was.
    • Presentation slides
    • The combined bank will be tops in market share in the Buffalo region and other areas in Upstate New York (M&T is currently #1 in Western NY). It also establishes Key in areas like Pittsburgh, Philadelphia, Hartford, and New Haven.
    • Expect jobs cuts/branch closures, mostly in the Buffalo area as cost savings are hoped to be $400M annually, helping to boost ROTCE by 200 basis points and improve the cash efficiency ratio by 300 bps.
    • Previously: KeyCorp buying First Niagara Financial for $4.1B (Oct. 30)
    • Previously: Fed approves M&T's purchase of Hudson City; HCBK +5.4% (Sept. 30)
    | Fri, Oct. 30, 10:06 AM | 3 Comments
  • Fri, Oct. 30, 7:25 AM
    • First Niagara (NASDAQ:FNFG) owners will receive 0.68 shares of KeyCorp (NYSE:KEY) and $2.30 in cash for each share of FNFG they hold. Based on KeyCorp's  close of $13.39 yesterday, it works out to $11.40 per share for First Niagara vs. its close last night of $10.38, and $9 in September when the bank put itself on the block.
    • The combined bank will have about $135B in assets, making it the 13th biggest in the U.S.
    • Annual cost savings are expected to be north of $400M. KeyCorp sees the deal as being accretive to EPS in 2017 and providing IRR of roughly 15%.
    • Needless to say, regulators must first give their approval, but the deal is hoped to close in Q3 of 2016.
    • A conference call is set for 8 ET
    • Source: Press Release
    • FNFG +2.9% to $10.68, KEY -0.9% to $13.26 premarket
    | Fri, Oct. 30, 7:25 AM | 5 Comments
  • Thu, Oct. 29, 12:01 PM
    • The deal could value First Niagara Financial (FNFG -2.2%) at modest premium to its current market cap of just under $4B, reports the WSJ, which says we could see an official announcement as soon as tomorrow.
    • Before First Niagara owners are too disappointed, they should be reminded the stock is higher by about 18% since reports of the bank being on the block first hit one month ago.
    • KeyCorp (KEY -1.4%)
    | Thu, Oct. 29, 12:01 PM | 10 Comments
  • Fri, Oct. 23, 9:04 AM
    • First Niagara (NASDAQ:FNFG) declares $0.08/share quarterly dividend, in line with previous.
    • Forward yield 3.03%
    • Payable Nov. 16; for shareholders of record Nov. 5; ex-div Nov. 3.
    | Fri, Oct. 23, 9:04 AM | Comment!
  • Fri, Oct. 23, 7:57 AM
    • Q3 net income of $52.9M or $0.15 per share vs. $53.3M and $0.15 in Q2.
    • Net interest income of $263.5M up from $263.1M in Q2, down from $273.3M a year ago, with NIM slipping to 2.98%.
    • Noninterest income of $83.4M vs. $75.4M a year ago. Mortgage banking income of $5.1M vs. $4.4M, Deposit service charges of $22.9M vs. $20.4M, Wealth management of $14.6M vs. $15.4M.
    • Noninterest expense of $245.4M vs. $249.5M a year ago. Salaries and employee benefits of $113.8M vs. $116.2M. Occupancy and equipment of $25.5M vs. $27.5M. Professional services of $18.1M vs. $14M.
    • Total loans of $23.4B vs. $22.465B a year ago, with commercial loans of $14.249B vs. $13.679B.
    • CET 1 ratio of 8.5%.
    • Conference call at 8:30 ET
    • Previously: First Niagara EPS in-line, misses on revenue (Oct. 23)
    • FNFG flat premarket
    | Fri, Oct. 23, 7:57 AM | Comment!
  • Fri, Oct. 23, 7:30 AM
    • First Niagara (NASDAQ:FNFG): Q3 EPS of $0.15 in-line.
    • Revenue of $346.93M (-0.5% Y/Y) misses by $6.82M.
    • Press Release
    | Fri, Oct. 23, 7:30 AM | Comment!
  • Thu, Oct. 22, 5:30 PM
  • Fri, Oct. 2, 11:33 AM
    • The long-awaited regulatory approval of the M&T Bank's purchase of Hudson City Bancorp, and the relatively quick green light for BB&T's acquisition of Susquehanna Bancshares has lifted M&A animal spirits in the regional bank sector.
    • Another possible buyer could be Regions Financial (NYSE:RF) - its done well on its annual stress tests, and has expressed a willingness to look into deals. There's also Memphis-based First Horizon National (NYSE:FHN), though at least one activist believes the bank is more target than hunter.
    • Possible sellers include First Niagara Financial (NASDAQ:FNFG), which has already put itself on the block.
    • A target for BBT or Regions might be Georgia's Synovus Financial (NYSE:SNV), with $27B in assets, and an activist investor pushing for a sale.
    • Another target might be Astoria Financial (NYSE:AF), with $15.3B in assets, and a neighbor in New York Community Bancorp (NYSE:NYCB) which might be on the hunt for acquisitions.
    | Fri, Oct. 2, 11:33 AM | 8 Comments
  • Thu, Oct. 1, 2:53 PM
    • "At a time when acquirers are seeking deposit-rich franchises, First Niagara (FNFG +1.9%) offers an attractive footprint with a clean balance sheet and a desirable loan/deposit ratio of 82 percent," says Compass Point's Laurie Hunsicker, initiating coverage with a Buy rating and $12 price target.
    • She notes the bank's bloated efficiency ratio of 70% offers plenty of fat to trim for enterprising acquirer.
    | Thu, Oct. 1, 2:53 PM | 2 Comments
  • Wed, Sep. 23, 12:40 PM
    | Wed, Sep. 23, 12:40 PM | 1 Comment
  • Wed, Sep. 23, 9:12 AM
    | Wed, Sep. 23, 9:12 AM | 1 Comment
  • Tue, Sep. 22, 8:48 PM
    • First Niagara Financial (NASDAQ:FNFG) +4.9% AH reportedly is exploring a sale of the company or other strategic opportunities, and has hired JPMorgan Chase to advise it on possible moves.
    • DealReporter said earlier that the bank had contacted possible buyers, and listed New York Community Bancorp (NYSE:NYCB), Toronto-Dominion Bank (NYSE:TD) and Huntington Bancshares (NASDAQ:HBAN) among possible suitors.
    | Tue, Sep. 22, 8:48 PM | 13 Comments
  • Tue, Sep. 22, 5:40 PM
    | Tue, Sep. 22, 5:40 PM | Comment!
  • Fri, Jul. 24, 10:14 AM
    • First Niagara (NASDAQ:FNFG) declares $0.08/share quarterly dividend, in line with previous.
    • Forward yield 3.33%
    • Payable Aug. 17; for shareholders of record Aug. 5; ex-div Aug. 3.
    | Fri, Jul. 24, 10:14 AM | Comment!
Company Description
First Niagara Financial Group Inc and its subsidiaries is engaged in providing financial services to individuals and businesses in New York, Western and Eastern Pennsylvania, Connecticut, and Western Massachusetts.
Sector: Financial
Industry: Savings & Loans
Country: United States