First Niagara Financial Group (FNFG) Tops Q4 EPS by 1c

First Niagara Financial Group (NASDAQ: FNFG) reported Q4 EPS of $0.17, $0.01 better than the analyst estimate of $0.16. Revenue for the quarter came in at $346.96 million versus the consensus estimate of $350.63 million.

Balance sheet growth remained strong as average loans increased 7% annualized compared to the prior quarter. Average commercial business and real estate loans increased 6% annualized over the prior quarter, while average consumer loans increased 10% annualized driven by continued increases in indirect auto and home equity balances. Average transactional deposit balances, which include interest-bearing and noninterest-bearing checking accounts, increased 18% over the prior quarter and currently represent 38% of the company's deposit balances, up from 36% a year ago.

Excluding historic tax credit amortization of $11 million, operating revenues were $358 million, and increased modestly from the prior quarter. Net interest income decreased 1% in the fourth quarter compared to the prior quarter primarily driven by lower one-time income accretion from prepayments of certain collateralized loan obligations (CLOs) which reduced net interest margin by 6 basis points. Normalized net interest margin was 3.09%, compared to 3.16% in the prior quarter. Excluding the impact of historic tax credit amortization, noninterest income increased $5 million or 6% from the prior quarter. In the fourth quarter, non-GAAP operating expenses were $248 million and declined modestly from the prior quarter.

The provision for loan losses on originated loans totaled $20 million in the fourth quarter of 2014, consistent with the prior quarter. Net charge-offs equaled 0.23% of average originated loans, a decrease of four basis points from 0.27% in the third quarter. At December 31, 2014, nonperforming originated loans declined 4% to $164 million, or 0.85% of originated loans, compared to 0.91% at the end of the prior quarter.

For earnings history and earnings-related data on First Niagara Financial Group (FNFG) click here.

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