Annual Meeting of Stockholders April 28, 2009
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Annual Meeting of StockholdersApril 28, 2009
G. Thomas Bowers
Chairman of the Board
Business Meeting
Annual Report to Shareholders
2009 Annual Meeting Agenda
Business Meeting
Business Meeting
Business Meeting
Proposal I:
Election of Directors
1. Carl A. Florio
2. David M. Zebro
Business Meeting
Proposal II:
Advisory Non-Binding Vote to
Approve Executive Compensation
Programs and Policies
Business Meeting
Proposal III:
Ratification of the Appointment of
KPMG LLP
Business Meeting
Final Polling
Michael W. Harrington
Chief Financial Officer
This presentation contains forward-looking
information for First Niagara Financial Group, Inc.
Such information constitutes forward-looking
statements (within the meaning of the Private
Securities Litigation Reform Act of 1995) which
involve significant risks and uncertainties. Actual
results may differ materially from the results
discussed in these forward-looking statements.
Safe Harbor Statement
9% Operating earnings (Reported earnings +4%)
4% Operating EPS (Reported EPS unchanged)
13% Total revenue
14% Commercial loans
18% Total loan originations
7% Total deposits
27% Tangible Common Equity
We Delivered Like Few Others:
2008 Accomplishments
¹ Operating earnings exclude: 2008 -Q1: Noninterest expense - real estate write-downs and severance related to the acquisition of Greater Buffalo
Savings Bank of $2.0 million. 2007 -Q4 2007: Noninterest income - gain on branch sales of $21.5 million and investment portfolio restructuring loss of
$5.6 million, Noninterest expense - branch deposit loss of $2.3 million, 2007-Q2: Noninterest expense - real estate write-downs and severance costs
of $7.5 million related to prior year's performance improvement initiative. 2007-Q1: Noninterest expense - severance and related costs of $2.4 million.
1
1
Median for SNL banks & thrifts $1-5 billion in Mkt Cap. FNFG Revenue and Net Income excludes non-recurring
items (Operating) e.g. merger related charges
Peer
-45%
Peer
5%
FNFG
13%
Total Revenue
FNFG
9%
Net Income
$384
Million
$90
Million
Accomplishments reflected in top & bottom line results
2008
vs.
2007
2008 Accomplishments
Grew commercial business market share
Reduced dependency on single relationship depositors
Successfully integrated GBSB
Managed expense base wisely
Raised $115M from a well received equity offering
Increased brand awareness
What we DID:
Discipline/Focus/Execution
2008 Accomplishments
What we DIDN’T do:
Disciplined decision making – stuck to the “basics”
Forget about the customer
Stop investing for long term growth
Pull back on lending activity
Take on troubled exposures
Incur outsized securities or credit charges
2008 Accomplishments
2008FNFG +34%
SNL Bk & Thft -45%
SNL Midcap -49%
-75
-65
-55
-45
-35
-25
-15
-5
5
15
25
A-0
9F-0
9
D-0
8
O-0
8A-0
8J-
08
A-0
8F-0
8
D-0
7
O-0
7A-0
7J-
07
A-0
7F-0
7
D-0
6
O-0
6A-0
6J-
06
A-0
6F-0
6
D-0
5
O-0
5A-0
5J-
05
A-0
5F-0
5
D-0
4
O-0
4A-0
4J-
04
A-0
4F-0
4
D-0
3
SNL Mid Bank &
Thrift
SNL Bank & Thrift
FNFG
Rewarded by market for our achievements
Stock Price PerformanceJanuary 2004 to Present
%
Key Statistic Result Comment
Operating EPS
Reported EPS
$0.16
$0.14
In line with expectations
Commercial Loans $3.7B 7% Growth
Deposits $6.2B 5% Growth
Net Charge Offs /Avg. Loans
Non Performing Loans/Total Lns.
0.44%
0.81%
Favorable to peers
Total Risk Based Capital Ratio
Tier 1 Capital Ratio
Tangible Common Equity Ratio
12.77%
11.53%
8.89%
Above regulatory “well
“capitalized” levels
First Quarter 2009 Highlights
1
1
1 Average balance annualized growth over 4th quarter 2008
Completed very successful common stock offering $380 million/ 31.1 million shares
Oversubscribed - strong demand by institutional investors
Replenished capital and ready for next opportunity
First Quarter 2009 Highlights
TCE/TATA Total RBC
8.9%
12.6%
7.7%
12.8%12.8%
12.4%
Current 3/31/09 Pro Forma for $380 million
Equity Raise
Pro Forma for Equity Raise and
Branch Purchase
1,2 1,3
Notes: 1 Pro Forma ratios assume repayment of $184 million of TARP preferred.2 Assumes cash from capital raise maintained at holding company.3 Assumes all holding company cash over $100 million is downstreamed to the bank.
John R. Koelmel
President &
Chief Executive Officer
Source: Moody’s
State of the Economy
4.3% GDP- 1st Qtr est.
8.9% Unemployment – April est.
Last 10 years
Source: Moody’s
State of the Economy
Last 10 years
4.3% GDP- 1st Qtr est.
8.9% Unemployment – April est.
State of the Industry
-60
-40
-20
0
20
D-08J-08D-07J-07D-06J-06D-05J-05D-04J-04D-03
SNL Bank & Thrift Index
%
Stock Price Performance
5 Years Ending 12/31/08
First Niagara
The First Niagara Advantage
FNFG Pro Forma Top 5 Regions
Expanded First Niagara Franchise
170 Branches
Assets: $13.8 billion
Loans: $7.2 billion
Deposits: $10.4 billion
Albany
Syracuse
Warren
Rochester
Buffalo
Erie
Pittsburgh First Niagara
Acquired Branches
FNFG Pro Forma Top 5 Regions
Expanded First Niagara Franchise
170 Branches
Assets: $13.8 billion
Loans: $7.2 billion
Deposits: $10.4 billion
Albany
Syracuse
Warren
Rochester
Buffalo
Erie
Pittsburgh First Niagara
Acquired Branches
27
Stretching the CoreBased on current growth
Existing initiatives underway
Move Up Market
Strengthen the
Foundation Strengthen the Foundation
Address current needs
Accelerate investment in
improving capabilities
Ready for more M&A
opportunities
Move Up MarketLarger competitors re-trenching
in Upstate NY
New opportunities from market
disruption
Potential for talent migration due
to uncertainty
Proven Strategy in Place Today
Winning Bank Characteristics:
Ample capital to support balance sheet and play offense
No toxic assets – strong underwriting standards
Abundance of stable, low cost deposit funding
Exportable competitive advantages
Scalable operating platform
Markets and customers with significant growth potential
Strong talent pool
Proven management focus, discipline and execution
Tough Times Breed Opportunities
FIRST NIAGARA: A WINNING FRANCHISE
How Do We Make it Happen?
Execution
Discipline
Focus
29
Keep playing offense
Question & Answer
Report
of Inspectors of
Election
Annual Meeting of StockholdersApril 28, 2009
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