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First Niagara Financial Reported Mixed 3Q15 Results

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Price movement of First Niagara Financial

First Niagara Financial Group (FNFG) has a market cap of $3.8 billion. Its YTD (year-to-date) price movement is going up quarter-over-quarter in 2015. After the 3Q15 earnings report, FNFG rose 0.76% to close at $10.64 per share as of October 23, 2015. The price movements on weekly, monthly, and YTD bases are 0.66%, 3.1%, and 29.6%, respectively.

Technically, First Niagara Financial Group has broken the support of 20-day and 50-day moving averages throughout 2015. Currently, it’s trading at 1.5% above the 20-day moving average, 9.0% above the 50-day moving average, and 16.8% above the 200-day moving average.

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The PowerShares KBW Regional Bank ETF (KBWR) invests 2.4% of its holdings in First Niagara Financial Group. The ETF tracks an equal-weighted index focused exclusively on US regional banking firms. The YTD price movement of KBWR is 5.0% as of October 22, 2015. The SPDR S&P Regional Banking ETF (KRE) invests 1.5% of its holdings in First Niagara Financial.

Below are market caps for First Niagara Financial Group’s (FNFG) competitors.

  • M&T Bank (MTB) — $16.3 billion
  • Citizens Financial Group (CFG) — $12.8 billion
  • LPL Financial Holdings (LPLA) — $3.9 billion
  • Wintrust Financial (WTFC) — $2.4 billion

First Niagara Financial’s 3Q15 peformance

First Niagara Financial reported interest income of $299.3 million in 3Q15, an increase of 0.35% on a quarterly basis. Interest income from loans and leases fell 0.23%, and interest income from investment securities increased 1.8% in 3Q15. Non-interest income fell to $83.4 million, a decrease of 3.7% on a quarterly basis.

Non-interest income from deposit service charges, insurance commissions, merchant and card fees, and lending and leasing increased 3.3%, 7.0%, 0.79%, and 12.23%, respectively. Non-interest inicome from wealth management services, mortgage banking, capital market income, and bank owned life insurance fell 7.3%, 12.3%, 50.6%, and 10.8%, respectively, in 3Q15.

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Net income fell to $60.5 million in 3Q15, a decrease of 0.86% on a quarterly basis. EPS (earnings per share) remained the same at $0.15 in 2Q15 and 3Q15. Loans and leases and debt-to-equity ratios increased 1.3% and 0.59%, respectively, in 3Q15. Non-performing loans and non-performing assets increased to $210.9 million and $229.3 million, respectively, in 3Q15 compared to non-performing loans and non-performing assets of $207.5 million and $224.9 million, respectively, in 2Q15.

Below are some of First Niagara Financial’s key activities in 3Q15:

  • The company completed the conservation equipment financing deal of $5 million for the Syracuse Housing Authority (SHA). This will help the company purchase energy saving appliances and materials for 13 Syracuse housing sites.
  • First Niagara Commercial Finance closed on a $43.5 million financing package to help Pennsylvania-based US Corrugated expand its operations and open a new state-of-the-art corrugated box plant in California.
  • The company will issue credit and debit cards armed with state-of-the-art chip-and-PIN security technology for security and fraud protection.

About First Niagara Financial

First Niagara Financial provides financial services to individuals, families, and businesses in New York, Pennsylvania, Connecticut, and Massachusetts.

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