Annual Meeting of Stockholders April 28, 2009

Transcription

1 Annual Meeting of Stockholders April 28, 2009

2 G. Thomas Bowers Chairman of the Board

3 2009 Annual Meeting Agenda Business Meeting Annual Report to Shareholders

4 Business Meeting

5 Business Meeting

6 Business Meeting

7 Business Meeting Proposal I: Election of Directors 1. Carl A. Florio 2. David M. Zebro

8 Business Meeting Proposal II: Advisory Non-Binding Vote to Approve Executive Compensation Programs and Policies

9 Business Meeting Proposal III: Ratification of the Appointment of KPMG LLP

10 Final Polling

11 Michael W. Harrington Chief Financial Officer

12 Safe Harbor Statement 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.

13 2008 Accomplishments We Delivered Like Few Others: 9% Operating earnings (Reported earnings +4%) 4% 13% 14% 18% 7% 27% Operating EPS (Reported EPS unchanged) Total revenue Commercial loans Total loan originations Total deposits Tangible Common Equity 1 1 ¹ Operating earnings exclude: Q1: Noninterest expense - real estate write-downs and severance related to the acquisition of Greater Buffalo Savings Bank of $2.0 million 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 Q1: Noninterest expense - severance and related costs of $2.4 million.

14 2008 Accomplishments Total Revenue Net Income FNFG 13% Peer 5% 2008 vs FNFG 9% $384 Million $90 Million Peer -45% Accomplishments reflected in top & bottom line results 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

15 2008 Accomplishments What we DID: 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 Discipline/Focus/Execution

16 2008 Accomplishments What we DIDN T do: 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 Disciplined decision making stuck to the basics

17 Stock Price Performance January 2004 to Present % D-03 F-04 A-04 J-04 A-04 O-04 D-04 F-05 A-05 J-05 A-05 O-05 D-05 F-06 A-06 J-06 A-06 O-06 D-06 F-07 A-07 J-07 A-07 O-07 D-07 F FNFG +34% SNL Bk & Thft -45% SNL Midcap -49% A-08 J-08 A-08 O-08 D-08 F-09 A-09 FNFG SNL Bank & Thrift Rewarded by market for our achievements SNL Mid Bank & Thrift

18 First Quarter 2009 Highlights Key Statistic Result Comment Operating EPS $0.16 In line with expectations Reported EPS $0.14 Commercial Loans $3.7B 7% Growth Deposits $6.2B 5% Growth 1 1 Net Charge Offs /Avg. Loans Non Performing Loans/Total Lns. Total Risk Based Capital Ratio Tier 1 Capital Ratio Tangible Common Equity Ratio 0.44% 0.81% 12.77% 11.53% 8.89% Favorable to peers Above regulatory well capitalized levels 1 Average balance annualized growth over 4 th quarter 2008

19 First Quarter 2009 Highlights 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 12.8% 12.6% 12.8% 12.4% 8.9% 7.7% 1,2 1,3 Current 3/31/09 Pro Forma for $380 million Equity Raise Pro Forma for Equity Raise and Branch Purchase 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. TCE/TATA Total RBC

20 John R. Koelmel President & Chief Executive Officer

21 State of the Economy Last 10 years 4.3% 8.9% GDP- 1 st Qtr est. Unemployment April est. Source: Moody s

22 State of the Economy Last 10 years 4.3% 8.9% GDP- 1 st Qtr est. Unemployment April est. Source: Moody s

23 State of the Industry % 20 First Niagara 0 D-03 J-04 D-04 J-05 D-05 J-06 D-06 J-07 D-07 J-08 D Stock Price Performance 5 Years Ending 12/31/08 SNL Bank & Thrift Index -60

24 The First Niagara Advantage

25 Expanded First Niagara Franchise 170 Branches Assets: $13.8 billion Loans: $7.2 billion Deposits: $10.4 billion Buffalo Erie Rochester Albany Syracuse FNFG Pro Forma Top 5 Regions Warren Pittsburgh First Niagara Acquired Branches

26 Expanded First Niagara Franchise 170 Branches Assets: $13.8 billion Loans: $7.2 billion Deposits: $10.4 billion Buffalo Erie Rochester Albany Syracuse FNFG Pro Forma Top 5 Regions Warren Pittsburgh First Niagara Acquired Branches

27 Proven Strategy in Place Today Strengthen the Foundation Move Up Market Stretching the Core Based on current growth Existing initiatives underway Strengthen the Foundation Address current needs Accelerate investment in improving capabilities Ready for more M&A opportunities Move Up Market Larger competitors re-trenching in Upstate NY New opportunities from market disruption Potential for talent migration due to uncertainty 27

28 Tough Times Breed Opportunities 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 FIRST NIAGARA: A WINNING FRANCHISE

29 How Do We Make it Happen? Execution Discipline Focus Keep playing offense 29

30 Question & Answer

31 Report of Inspectors of Election

32 Annual Meeting of Stockholders April 28, 2009