First Niagara Reports First Quarter 2013 Results

First Niagara Reports First Quarter 2013 Results

First Quarter Highlights:

  *Net Income of $0.17 per share included $0.01 in executive departure
    related charges
  *Operating revenues declined 1% QOQ primarily driven by a 3% decline in fee
    income

    *Net interest margin of 3.39% decreased 3 basis points from adjusted
      fourth quarter
    *Lower margins drove a 20% QOQ decline in mortgage banking revenues

  *Operating expenses declined $3.7 million from the prior quarter adjusted
    for executive departure related charges
  *Average total loans increased 11% annualized QOQ driven by 13^th
    consecutive quarter of double-digit increases in average commercial
    lending

    *Double-digit average commercial growth rates QOQ in each of the
      company's geographies
    *New York commercial loans increased 9% annualized since HSBC Transaction

  *Interest-bearing checking balances up 19% annualized

    *New checking account unit production per branch increased 15% QOQ
    *Mobile banking platform successfully launched in January 2013

  *Strong credit quality maintained

    *Originated NPL balances flat QOQ and declined 4 basis points to 1.03% of
      originated loans
    *NCOs equaled 0.27% of average originated loans, compared to 0.35% in
      2012

BUFFALO, N.Y., April 19, 2013 (GLOBE NEWSWIRE) -- First Niagara Financial
Group, Inc. (Nasdaq:FNFG) today announced first quarter 2013 results that
reflect continued organic loan growth, particularly in commercial lending,
positive operating leverage driven by strong focus on expense management, and
strong credit quality.

"Our first-quarter results are evidence of our continued strong fundamentals
and a focus on enhancing shareholder value," said Gary Crosby, Interim
President and Chief Executive Officer. "We are driving profitable growth by
enabling our people to provide our customers what they need every day, and
focusing on the efficiency and effectiveness of our organization as never
before. In 2013, it is "business as usual" at First Niagara as we continue to
execute our existing strategic plan, focusing on managing expenses,
maintaining our strong credit quality and maximizing the company's potential
in the diverse and attractive markets we serve."

The company is progressing on its search for a permanent CEO. The Board of
Directors' search committee, chaired by Nathaniel D. Woodson and including
Carl A. Florio and Carlton L. Highsmith, is being assisted by the national
search firm of Korn/Ferry International.

First Quarter Results

In the first quarter of 2013, First Niagara reported net income available to
common shareholders of $59.7 million, or $0.17 per diluted share compared to
net income of $53.6 million, or $0.15 per diluted share in the fourth quarter
of 2012. Results for the first quarter 2013 include the impact of a $6.3
million pre-tax charge, or $0.01 per share related to two executive departures
announced last month. Reported GAAP results for the fourth quarter of 2012
included $3.7 million of restructuring charges as well as the impact of the
$16 million accelerated CMO premium amortization adjustment.

Net interest margin declined 3 basis points to 3.39% from the adjusted 3.42%
reported in the fourth quarter of 2012. Net interest income in the first
quarter declined 1% annualized compared to adjusted fourth quarter levels.
Noninterest income decreased $2.5 million or 3% from the prior quarter
primarily due to lower mortgage banking, deposit service charges, and capital
markets revenues.

Balance sheet growth remained strong as average interest-earning assets
increased 8% annualized compared to the prior quarter. Average commercial
loans increased 17% annualized over the prior quarter, the 13th consecutive
quarter of double-digit growth. Average indirect auto loan balances increased
$197 million while other consumer loan categories declined modestly compared
to the prior quarter. Average interest-checking deposits increased 19%
annualized from the prior quarter driven by greater account acquisition
activity as well as increases in balances held by customers.

The provision for loan losses on originated loans totaled $18.9 million in the
first quarter of 2013, including $9.8 million to support loan growth and $9.1
million to cover net charge-offs during the quarter. At March 31, 2013,
nonperforming originated loans were flat compared to prior quarter levels and
as a percentage of originated loans decreased four basis points to 1.03% from
1.07% at December 31, 2012. Net charge-offs equaled 27 basis points of average
originated loans, compared to 35 basis points in 2012.

First quarter 2013 expenses, excluding a $6.3 million pre-tax charge related
to two executive departures announced last month, declined $3.7 million, or
2%, compared to the prior quarter. Seasonal increases in salaries and benefits
expense driven by payroll taxes and employee merit increases were more than
offset by expense management.

Reported Results (GAAP)                     Q1 2013 Q4 2012 Q1 2012
Net interest income                         $266.1 $252.3 $242.4
Provision for credit losses                 20.2    22.0    20.0
Noninterest income                          89.3    91.8    69.9
Noninterest expense                         237.7   238.8   200.2
Net income                                  67.3    61.1    59.9
Preferred stock dividend                    7.5     7.5     5.1
Net income available to common shareholders 59.7    53.6    54.8
Weighted average diluted shares outstanding 350.0   349.7   349.1
Earnings per diluted share                  $0.17 $0.15 $0.16
                                                         
All amounts in millions except earnings per diluted share.            

"During the first quarter, our focus on managing expenses drove a $3.7 million
sequential reduction in operating expenses and resulted in positive operating
leverage as well as protecting the downside from the industry-wide decline in
mortgage banking revenues, competitive loan pricing environment and other
typical seasonal weaknesses," said Gregory W. Norwood, Chief Financial
Officer. "A key focus throughout the remainder of the year will be expense
management with only selective hiring and investments that support maximizing
revenue potential and enhancing shareholder value while driving our efficiency
ratio lower."

Loans

Average total loans increased 11% annualized from the linked quarter boosted
by double-digit increases in commercial business (C&I) and commercial real
estate (CRE) lending as well as sustained momentum in the company's indirect
auto business.For the 13^th consecutive quarter, average commercial loans,
which includes commercial business and commercial real estate loans, increased
at a double-digit pace organically, up $484 million, or 17% annualized over
the prior quarter. Commercial business loans averaged $5.0 billion,
representing an 18% annualized increase over the prior quarter. Commercial
real estate loans increased 16% annualized to $7.2 billion. Average
commercial loans in the company's New York, Western Pennsylvania, Eastern
Pennsylvania and New England markets increased at double-digit annualized
growth rates of 10%, 29%, 30%, and 25%, respectively. Since the acquisition of
HSBC branches in May 2012, commercial loans in the company's New York market
have increased at a 9% annualized growth rate.

Average indirect auto loan balances increased $197 million to $712 million.
During the first quarter, new originations yielded 3.34%, net of dealer
reserve.During the quarter, the company added an additional 72 dealers to its
network within its contiguous footprint. Average residential real estate loans
declined by $128 million, or 14% annualized, from the fourth quarter
reflecting elevated industry-wide prepayment levels.

Deposits

The company continued to focus its efforts to grow its core customer base,
re-position its account mix and increase lower cost deposits.Average
transaction deposits, which include interest-bearing and noninterest bearing
checking balances, increased slightly over the prior quarter and currently
represent 32% of the company's deposit base, up from 28% a year ago. Increases
in average interest-bearing checking balances were offset by seasonal declines
in non-interest bearing deposit balances.

Average interest-bearing checking deposits increased 19% annualized compared
to the prior quarter driven by acquisitions of new checking accounts and mass
affluent households, particularly in the company's New York state footprint as
well as higher balances held by customers.New checking account openings per
branch increased 15% over the prior quarter.Average total core deposits,
excluding time deposits, totaled $23.4 billion, representing a $150 million
decline, or 3% annualized, from the linked quarter. This decline was partially
driven by balance attrition due to continued pricing actions taken by the
company on money market and online savings accounts.

The average cost of interest-bearing deposits declined four basis points to
0.25% from 0.29% in the fourth quarter. Pricing actions on non-transactional
deposit accounts together with a favorable shift in mix of deposits drove the
decline in overall cost of interest-bearing deposits.

The company continues to grow and deepen customer relationships by delivering
its "Simple Fast Easy" value proposition. First Niagara launched its mobile
banking offering in the first quarter, and approximately 20% of the company's
online banking customers have signed up for mobile banking services via
smartphone and tablet applications.

The company's Retail business, in tandem with Consumer Finance, continues to
further expand relationships with core checking account customers. Beginning
in the first quarter, the incentive program for sales personnel at the
branches was enhanced to drive greater cross-solving referrals to Consumer
Finance and Investment Services businesses. At March 31, 2013, the number of
checking account households that also had a mortgage with the company
increased 12% annualized from the prior quarter. The number of credit card
accounts opened per branch increased by a factor greater than 3x compared to
the prior quarter and was primarily driven by marketing campaigns targeted at
existing deposit customers and greater cross-solving referrals at the point of
sale.

Net Interest Income

First quarter 2013 net interest income of $266.1 million decreased slightly
from the prior quarter adjusted amount of $268.6 million. Compared to the
prior quarter, the benefits of an 8% annualized increase in average
interest-earning assets were offset by a 3 basis point decline in the adjusted
net interest margin from the prior quarter.

In the first quarter of 2013, total premium amortization on the CMO portfolio
was $10.4 million compared to an adjusted $14.5 million in the prior quarter.
The modest benefits from slower CMO cash flows together with a 4 basis point
decline in cost of interest bearing deposits were offset by continued
compression of loan yields from elevated prepayments and reinvestments at
lower spreads.

Credit Quality

At March 31, 2013, the allowance for loan losses was $172.0 million, compared
to $162.5 million at December 31, 2012. Information for both the originated
and acquired portfolios follows.

               Q1 2013                           Q4 2012
$ in millions   Originated   Acquired   Total     Originated  Acquired  Total
Provision for   $ 18.9       $ 0.9      $ 19.8    $ 21.4      $ 0.2     $ 21.5
loan losses*
Net charge-offs 9.1          1.2        10.3      7.6         1.3       8.9
NCOs/ Avg Loans 0.27 %       0.08 %     0.21 %    0.24 %      0.08 %    0.18 %
Total loans**   $ 14,100     $ 6,084    $ 20,035  $ 13,372    $ 6,514   $
                                                                        19,710

(*) Excludes provision for unfunded commitments of $0.4 million and $0.5
million in 1Q13 and 4Q12, respectively
(**) Acquired loans before associated credit discount; see accompanying tables
for further information

Originated loans

The provision for loan losses on originated loans totaled $18.9 million,
compared to $21.4 million in the prior quarter.This provision included $9.8
million to support sequential originated loan growth of $0.7 billion and $9.1
million to cover net charge-offs.Net charge-offs equaled 27 basis points of
average originated loans in the first quarter of 2013, compared to 35 basis
points in 2012.

At March 31, 2013, nonperforming assets to total assets were 0.50%, unchanged
from the prior quarter. Nonperforming originated loans as a percentage of
originated loans decreased four basis points to 1.03% at March 31, 2013 from
1.07% at December 31, 2012. 

At March 31, 2013, the allowance for loan losses on originated loans totaled
$170.7 million or 1.21% of such loans, compared to $161.0 million or 1.20% of
loans at December 31, 2012.

Acquired loans

The provision for losses on acquired loans totaled $0.9 million, compared to
$0.2 million in the prior quarter. Net charge-offs on those portfolios totaled
$1.2 million during the quarter, compared to $1.3 million in the prior period.
At March 31, 2013, the allowance for loan losses on acquired loans totaled
$1.3 million, compared to $1.6 million at December 31, 2012. Acquired
nonperforming loans totaled $27.7 million, compared to $29.6 million at the
end of the prior quarter.At March 31, 2013, remaining credit marks available
to absorb losses on a pool-by-pool basis totaled $149 million.

Fee Income

First quarter 2013 noninterest income of $89.3 million decreased 3% or $2.5
million compared to the prior quarter primarily due to lower mortgage banking,
deposit service charges, and capital markets revenues.

Mortgage banking revenues declined 20% to $6.4 million from $8.1 million in
the prior quarter. Deposit service charges declined $1.5 million or 6% from
the prior quarter in large part due to seasonality and to a lesser extent due
to lower customer non-sufficient funds (NSF) incident rates. Capital markets
income declined 15% to $6.0 million from an all-time high in the prior quarter
due to lower derivative swap activity during the quarter.

These declines were partially offset by higher wealth management fees and
seasonal increase in insurance commissions. Wealth management services fees
increased 7% driven by an 18% annualized increase in assets under management.
Insurance commissions increased 6% compared to the fourth quarter driven by
typical seasonal increases in renewal rates.

Noninterest Expense

First quarter noninterest expenses were $237.7 million and included $6.3
million in charges related to two recently announced executive departures.
Excluding these charges, operating expenses totaled $231.4 million or $3.7
million lower than operating expenses in the fourth quarter of 2012.

First Niagara's focus on expense management resulted in a first-quarter
reduction in brand-related marketing expenses as the company focused on select
product promotions, as well as sequential decreases in professional fees,
technology and communications expenses driven by vendor sourcing
management.Compared to the fourth quarter of 2012, marketing and advertising
expense declined $4.9 million and professional fees and technology and
communications expenses declined $1.6 million and $1.1 million, respectively.

Salaries and benefits expenses increased $4.8 million, compared to the fourth
quarter of 2012, entirely due to seasonal increases in payroll tax expenses
and employee merit increases.

Operating expenses, excluding the executive departure charges, declined 1.6%
outpacing a 1.4% decline in operating revenues and resulted in positive
operating leverage during the quarter. The efficiency ratio, excluding the
executive departure related charge, was 65.1% in the first quarter, down
slightly from 65.2% in the prior quarter.

Capital

At March 31, 2013, the company's estimated consolidated Total Risk Based
capital and Tier 1 Common Risk Based capital ratios were 11.4% and 7.6%
respectively. The company remains well above current regulatory guidelines
for well-capitalized institutions.

About First Niagara

First Niagara, through its wholly owned subsidiary, First Niagara Bank, N.A.,
is a multi-state community-oriented bank with approximately 430 branches,
approximately $37 billion in assets, $28 billion in deposits, and
approximately 6,000 employees providing financial services to individuals,
families and businesses across Upstate New York, Pennsylvania, Connecticut and
Massachusetts. For more information, visit www.firstniagara.com.

Investor Call

A conference call will be held at 10:00 a.m. Eastern Time on Friday, April 19,
2013 to discuss the company's financial results.Those wishing to participate
in the call may dial toll-free 1-888-324-3414 with the passcode:
FNFG.Presentation slides will be used during the earnings conference call and
is available under the investor relations tab of our website at
www.firstniagara.com. A replay of the call will be available until May 2, 2013
by dialing 1-866-421-6880, passcode: 2563.

Non-GAAP Measures - This news release contains financial information
determined by methods other than in accordance with accounting principles
generally accepted in the United States of America (GAAP).The company
believes that non-GAAP financial measures provide a meaningful comparison of
the underlying operational performance of the company, and facilitate
investors' assessments of business and performance trends in comparison to
others in the financial services industry.In addition, the company believes
the exclusion of these non-operating items enables management to perform a
more effective evaluation and comparison of the company's results and to
assess performance in relation to the company's ongoing operations.These
disclosures should not be viewed as a substitute for financial measures
determined in accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other companies.Where
non-GAAP disclosures are used in this news release, the comparable GAAP
financial measure, as well as the reconciliation to the comparable GAAP
financial measure, can be found in this document.

Forward-Looking Statements - This press release contains forward-looking
statements with respect to the financial condition and results of operations
of First Niagara Financial Group, Inc. including, without limitations,
statements relating to the earnings outlook of the company.These
forward-looking statements involve certain risks and uncertainties.Factors
that may cause actual results to differ materially from those contemplated by
such forward-looking statements include, among others, the following
possibilities: (1) changes in the interest rate environment; (2) competitive
pressure among financial services companies; (3) general economic conditions
including an increase in non-performing loans that could result from an
economic downturn; (4) changes in legislation or regulatory requirements; (5)
difficulties in continuing to improve operating efficiencies; (6) difficulties
in the integration of acquired businesses; and (7) increased risk associated
with an increase in commercial real estate and business loans and
non-performing loans.

First Niagara
Financial Group,                                                    
Inc.
Income Statement
Highlights --                                                       
Reported Basis
(in thousands,
except per share                                                    
amounts)
                                                                   
                2013      2012                                         2011
                First    Fourth   Third    Second    First    Fourth
                Quarter  Quarter  Quarter  Quarter   Quarter  Quarter
                                                                   
Interest income:                                                    
Loans and leases $206,640 $212,035 $211,767 $200,725  $189,385 $195,434
Investment
securities and   88,961    71,564    90,101    99,116     101,395   96,472
other
Total interest   295,601   283,599   301,868   299,841    290,780   291,906
income
                                                                   
Interest                                                            
expense:
Deposits        14,277    16,902    18,358    16,391     14,998    21,521
Borrowings      15,194    14,411    13,905    24,437     33,411    27,872
Total interest   29,471    31,313    32,263    40,828     48,409    49,393
expense
                                                                   
Net interest     266,130   252,286   269,605   259,013    242,371   242,513
income
Provision for    20,200    22,000    22,200    28,100     20,000    13,400
credit losses
Net interest
income after     245,930   230,286   247,405   230,913    222,371   229,113
provision
                                                                   
Noninterest                                                         
income:
Deposit service  24,800    26,345    26,422    21,433     17,037    18,049
charges
Insurance        16,355    15,497    18,764    17,072     16,833    15,440
commissions
Merchant and     11,298    11,945    12,014    9,271      5,528     5,044
card fees
Wealth
management       12,845    12,000    11,069    9,207      9,039     8,179
services
Mortgage banking 6,424     8,060     10,974    7,174      5,649     5,279
Capital markets  6,031     7,098     6,381     6,831      6,539     2,746
income
Lending and      3,906     3,739     3,730     4,245      3,123     3,103
leasing
Bank owned life  3,467     3,021     3,449     3,848      3,387     3,302
insurance
Other income     4,186     4,116     9,400     16,517     2,773     2,543
Total
noninterest      89,312    91,821    102,203   95,598     69,908    63,685
income
                                                                   
Noninterest                                                         
expense:
Salaries and     115,790   111,026   115,484   104,507    96,477    88,796
benefits
Occupancy and    28,045    27,609    25,694    24,089     22,017    22,580
equipment
Technology and   27,113    28,257    28,110    24,434     19,713    18,942
communications
Marketing and    4,346     9,292     8,954     6,676      6,763     7,724
advertising
Professional     9,603     11,163    11,193    9,263      8,895     11,669
services
Amortization of  14,119    14,224    14,506    9,839      6,466     6,586
intangibles
FDIC premiums    8,901     9,158     8,850     10,552     6,133     6,097
Merger and
acquisition      --       3,678     29,404    131,460    12,970    6,149
integration
expenses
Restructuring    --       --       --       3,750      2,703     13,496
charges
Other expense    29,749    24,377    24,347    21,069     18,041    20,132
Total
noninterest      237,666   238,784   266,542   345,639    200,178   202,171
expense
                                                                   
Income (loss)
before income    97,576    83,323    83,066    (19,128)  92,101    90,627
tax
Income tax
expense          30,291    22,226    24,682    (8,204)   32,236    32,166
(benefit)
Net income       67,285    61,097    58,384    (10,924)  59,865    58,461
(loss)
Preferred stock  7,547     7,547    7,547    7,547     5,115     --
dividend
Net income
(loss) available $59,738  $53,550  $50,837  $(18,471) $54,750  $58,461
to common
stockholders
                                                                   
Financial                                                           
Ratios:
Earnings (loss)  $0.17    $0.15    $0.15    $(0.05)   $0.16    $0.19
per basic share
Earnings (loss)
per diluted      $0.17    0.15      0.14      (0.05)     0.16      0.19
share
Weighted average
shares           349,278   349,071   349,001   348,941    348,823   304,065
outstanding -
basic^(1)
Weighted average
shares           349,999   349,663   349,371   348,941    349,069   304,341
outstanding -
diluted^(1)
Net revenue^(2)  $355,442 $344,107 $371,808 $354,611  $312,279 $306,198
Noninterest
income as a      25.13%     26.68%     27.49%     26.96%      22.39%     20.80%
percentage of
net revenue^(2)
Pre-tax,
pre-provision    $117,776 $105,323 $105,266 $8,972    $112,101 $104,027
income^(3)
Pre-tax,
pre-provision
income per       $0.34    $0.30    $0.30    $0.03     $0.32    $0.34
diluted
share^(3)
Pre-tax,
pre-provision
return on        1.30%      1.15%      1.19%      0.10%       1.36%      1.30%
average
assets^(3)
Net interest     3.39%      3.22%      3.54%      3.26%       3.34%      3.48%
margin^(4)
Interest yield
on average       4.25%      4.39%      4.47%      4.59%       4.62%      4.76%
loans^(4)
Rate paid on
interest-bearing 0.44%      0.48%      0.51%      0.61%       0.79%      0.82%
liabilities
Efficiency ratio 66.86%     69.39%     71.69%     97.47%      64.10%     66.03%
Effective tax    31.0%      26.7%      29.7%      42.9%       35.0%      35.5%
rate
Return on
average          0.74 %    0.67%      0.66%      (0.12)%    0.73%      0.73%
assets^(5)
Return on
average          5.50 %    4.92%      4.77%      (0.90)%    4.96%      5.54%
equity^(5)
Return on
average tangible 11.62 %   10.45%     10.34%     (1.64)%    7.90%      9.75%
equity^(3)(5)
Return on
average common   5.24 %    4.62%      4.46%      (1.64)%    4.88%      5.63%
equity
Return on
average tangible 12.05 %   10.72%     10.60%     (3.18)%    8.12%      10.03%
common
equity^(3)
                                                                   
(1) Share count excludes unallocated ESOP shares and unvested restricted stock
shares.
(2) Net revenue is comprised of net interest income and noninterest income.
(3) The tables in this earnings release present computation of earnings and certain
other ratios using non-GAAP financial measures, which we believe provide investors
with information that is useful in understanding our financial performance and
position. See Appendix A for further detail.
(4) Yields and rates calculated on a tax equivalent basis.
(5) Return used to calculate ratio excludes preferred stock dividend.

                                                                                    
First Niagara
Financial Group,                                                                     
Inc.
Period End Balance                                                                   
Sheet
(in thousands)                                                                       
                                                                                    
                   2013         2012                                                    2011
                   March 31,     December 31, September 30, June 30,      March 31,     December 31,
                                                                                    
Cash and cash       $424,176    $430,862    $447,087    $488,227    $370,380    $836,555
equivalents
Investment                                                                           
securities:
Available for sale  7,876,160    10,993,605   10,579,970   9,937,271    12,248,058   9,348,296
Held to maturity    4,218,687    1,299,806    1,387,763    1,463,872    2,503,156    2,669,630
FHLB and FRB common 401,373      420,277      373,311      329,555      499,328      358,159
stock
Total investment    12,496,220   12,713,688   12,341,044   11,730,698   15,250,542   12,376,085
securities
Loans held for sale 126,389      154,745      117,375      101,596      102,513      94,484
Loans and leases:                                                                   
Commercial:                                                                          
Real estate         7,295,544    7,093,193    6,835,971    6,710,009    6,369,098    6,244,381
Business            5,044,738    4,953,323    4,682,154    4,514,537    4,108,363    3,771,649
Total commercial    12,340,282   12,046,516   11,518,125   11,224,546   10,477,461   10,016,030
loans
Consumer:                                                                            
Residential real    3,614,912    3,761,567    3,870,756    4,037,045    3,881,003    4,012,267
estate
Home equity         2,646,645    2,651,891    2,661,429    2,683,236    2,149,135    2,165,988
Indirect auto       818,401      601,456      419,258      185,774      --           --
Credit cards        298,310      314,973      308,387      304,368      --           --
Other consumer      316,669      333,609      328,571      328,547      283,320      278,298
Total consumer      7,694,937    7,663,496    7,588,401    7,538,970    6,313,458    6,456,553
loans
Total loans and     20,035,219   19,710,012   19,106,526   18,763,516   16,790,919   16,472,583
leases
Allowance for loan  172,002      162,522      149,933      138,516      126,746      120,100
losses
Loans and leases,   19,863,217   19,547,490   18,956,593   18,625,000   16,664,173   16,352,483
net
Bank owned life     407,419      404,321      401,211      397,739      395,944      392,468
insurance
Goodwill and other  2,567,681    2,617,810    2,626,625    2,631,605    1,796,394    1,803,240
intangibles
Other assets        959,459      937,317      983,999      1,130,891    937,859      955,300
Total assets        $36,844,561 $36,806,232 $35,873,934 $35,105,756 $35,517,805 $32,810,615
                                                                                    
Deposits:                                                                            
Savings accounts    $3,915,836  $3,887,587  $3,941,528  $4,103,773  $2,554,720  $2,621,016
Interest-bearing    4,534,444    4,450,970    4,090,322    3,887,568    2,431,672    2,259,576
checking
Money market        10,493,243   10,581,137   10,801,280   10,919,766   7,100,646    7,220,902
deposits
Noninterest-bearing 4,803,835    4,643,580    4,658,374    4,774,764    3,200,824    3,335,356
deposits
Certificates of     3,985,702    4,113,257    4,206,192    4,211,116    3,741,525    3,968,265
deposit
Total deposits      27,733,060   27,676,531   27,697,696   27,896,987   19,029,387   19,405,115
                                                                                    
Short-term          2,928,929    2,983,718    1,995,610    958,044      6,353,189    2,208,845
borrowings
Long-term           732,510      732,425      732,339      732,263      4,688,251    5,918,276
borrowings
Other liabilities   503,389      487,000      532,868      700,249      571,532      480,201
Total liabilities   31,897,888   31,879,674   30,958,513   30,287,543   30,642,359   28,012,437
Preferred
stockholders'       338,002      338,002      338,002      338,002      338,002      338,002
equity
Common
stockholders'       4,608,671    4,588,556    4,577,419    4,480,211    4,537,444    4,460,176
equity
Total stockholders' 4,946,673    4,926,558    4,915,421    4,818,213    4,875,446    4,798,178
equity
Total liabilities
and stockholders'   $36,844,561 $36,806,232 $35,873,934 $35,105,756 $35,517,805 $32,810,615
equity
                                                                                    
Selected balance                                                                     
sheet information:
Total
interest-earning    $32,524,313 $32,321,964 $31,316,470 $30,403,035 $31,959,556 $29,284,139
assets^(1)
Total
interest-bearing    26,590,664   26,749,094   25,767,271   24,812,530   26,870,002   24,196,880
liabilities
Net
interest-earning    $5,933,649  $5,572,870  $5,549,199  $5,590,505  $5,089,554  $5,087,259
assets
                                                                                    
Tangible common     $2,040,990  $1,970,746  $1,950,794  1,848,606    2,741,050    2,656,936
equity^(2)
Unrealized gain on
securities, net of  160,942      206,732      204,347      133,430      152,408      105,276
tax^(3)
                                                                                    
Total core deposits $23,747,358 $23,563,274 $23,491,504 $23,685,871 $15,287,862 $15,436,850
                                                                                    
Originated          $14,100,190 $13,372,357 $12,232,568 $11,392,158 $10,517,021 $9,876,005
loans^(4)
Acquired loans^(5)  6,083,912    6,513,636    7,085,839    7,600,213    6,459,798    6,801,689
Credit related
discount on         (148,883)    (175,981)    (211,881)    (228,855)    (185,900)    (205,111)
acquired loans^(6)
Total Loans         $20,035,219 $19,710,012 $19,106,526 $18,763,516 $16,790,919 $16,472,583
                                                                                    
(1) Includes interest bearing cash and cash equivalents, investment securities at amortized cost, loans
held for sale, and total loans and leases.
(2) The tables in this earnings release present computation of earnings and certain other ratios using
non-GAAP financial measures, which we believe provide investors with information that is useful in
understanding our financial performance and position. See Appendix A for further detail.
(3) Unrealized gain at March 31, 2013 excludes $54 million of net pre-tax unrealized gains recorded in
accumulated other comprehensive income related to available for sale securities transferred to held to
maturity classification as of March 31, 2013.
(4) Originated loans represent total loans excluding acquired loans.
(5) Represents the carrying value of acquired loans plus the principal not expected to be collected.
(6) Represent principal on acquired loans not expected to be collected.

                                                                                                       
First Niagara
Financial Group,                                                                                        
Inc.
Average Balance Sheet and Related Tax Equivalent                                                           
Yields & Rates
(in millions)                                                                                           
                  For the three months ended
                  March 31, 2013                   December 31, 2012                   March 31, 2012
                  Average Interest^(1) Yields  Average Interest^(1) Yields     Average Interest^(1) Yields
                  Balances             and       Balances             and          Balances             and
                                          Rates^(1)                       Rates^(1)(2)                       Rates^(1)
Interest-earning                                                                                        
assets:
Loans and                                                                                               
leases^(3)
Commercial:                                                                                             
Real estate         $7,179  $76        4.25%     $6,911  $79        4.45%        $6,300  $79        4.98%
Business            4,999    47          3.74    4,783    47          3.89       3,915    41          4.08
Total commercial    12,178   123         4.04    11,694   126         4.22       10,215   120         4.63
loans
Consumer:                                                                                               
Residential real    3,691    37          4.01    3,819    39          4.05       3,945    42          4.28
estate
Home equity         2,648    28          4.29    2,659    29          4.31       2,157    24          4.40
Indirect auto       712      6           3.29    515      5           3.50       --      --         --
Credit cards        304      8           10.40   310      8           10.19      --      --         --
Other consumer      328      7           8.17    328      7           8.73       278      5           7.34
Total consumer      7,683    85          4.50    7,631    87          4.54       6,380    71          4.47
loans
Total loans and     19,861   208         4.25    19,325   213         4.39       16,595   191         4.62
leases
Residential MBS^(2) 5,488    34          2.50    5,746    36          2.50       8,550    65          3.03
Commercial MBS      1,914    18          3.78    1,953    18          3.79       1,704    17          3.99
Other investment    4,822    38          3.19    4,474    35          3.16       2,678    23          3.44
securities ^(4)
Total securities,  12,224   91          2.97    12,173   90          2.95       12,932   105         3.24
at cost^(2)
Money market and    241      1           1.31    207      1           1.54       256      1           0.94
other investments
Total
interest-earning    32,326   $300       3.76%     31,705   $304       3.81%        29,783   $296       3.99%
assets^(2)
Goodwill and other  2,609                         2,619                            1,801                
intangibles
Other
noninterest-earning 1,872                         2,005                            1,540                
assets
                                                                                                      
Total assets       $36,807                      $36,329                         $33,124             
                                                                                                      
Interest-bearing                                                                                        
liabilities:
Deposits                                                                                                
Savings accounts    $3,894  $1         0.11%     $3,898  $2         0.18%        $2,566  $--       0.03%
Interest-bearing    4,379    1           0.05    4,181    1           0.07       2,224    1           0.10
checking
Money market        10,643   6           0.23    10,810   7           0.25       7,167    5           0.28
deposits
Certificates of     4,081    7           0.67    4,259    8           0.71       3,827    9           0.98
deposit
Total interest      22,997   14          0.25%     23,148   17          0.29%        15,784   15          0.38%
bearing deposits
Borrowings                                                                                              
Short-term          3,152    3           0.40%     2,331    2           0.38%        3,632    6           0.65%
borrowings
Long-term           730      12          6.71    732      12          6.63       5,334    27          2.07
borrowings
Total borrowings   3,882    15          1.59    3,063    14          1.87       8,966    33          1.50
Total
interest-bearing    26,879   $29        0.44%     26,211   $31        0.48%        24,750   $48        0.79%
liabilities
Noninterest-bearing 4,468                         4,645                            3,053                
deposits
Other
noninterest-bearing 502                           528                              471                  
liabilities
Total liabilities  31,849                        31,384                           28,274               
Total stockholders' 4,958                         4,945                            4,850                
equity
Total liabilities
and stockholders'   $36,807                      $36,329                         $33,124             
equity
                                                                                                      
Net interest income          $270                         $273                            $248       
(FTE)
Taxable Equivalent           4                             4                                6           
Adjustment^(1)
                                                                                                      
Total core         $23,384 $8         0.13%     $23,534 $10        0.16%        $15,010 $6         0.15%
deposits
Total deposits    27,465   14          0.21%     27,793   17          0.24%        18,837   15          0.32%
                                                                                                      
Tax equivalent net
interest rate                            3.32%                          3.33%                             3.20%
spread^(2)
Tax equivalent net
interest rate                            3.39%                          3.42%                             3.34%
margin^(2)
                                                                                                      
(1) Tax equivalent interest income is calculated using a 35%                                                
tax rate.
(2) Amounts for the three months ended December 31, 2012 exclude accelerated CMO adjustments of $16 million.The yields,
including these adjustments, are:
                                       Three months ended                                                
                                           December 31, 2012
Residential MBS                         1.37%                                                             
Total securities,                        2.41%                                                             
at cost
Total interest                          3.61%                                                             
earning assets
Tax equivalent net interest               3.13%                                                             
rate spread
Tax equivalent
net interest rate                       3.22%                                                             
margin
(3) Includes nonaccrual loans.
(4) Includes debt securities, collateralized loan obligations, asset-backed securities, FHLB and FRB common stock, and
other investment securities.

                                                                                 
First Niagara
Financial Group,                                                                  
Inc.
Allowance for
Loans and Lease                                                                   
Losses & Asset
Quality
(in thousands)                                                                    
                2013         2012                                                    2011
                First       Fourth      Third       Second      First       Fourth
                Quarter     Quarter     Quarter     Quarter     Quarter     Quarter
Beginning        $162,522    $149,933    $138,516    $126,746    $120,100    $112,749
balance
Net loan
(charge-offs)                                                                     
recoveries:
Commercial real  $(2,121)    $(1,935)    $(1,791)    $(2,384)    $(5,994)    $212
estate
Commercial       (4,902)      (3,385)      (6,077)      (10,958)     (4,143)      (4,665)
business
Residential real (427)        (658)        (396)        (155)        (1,120)      (318)
estate
Home equity      (613)        (673)        (401)        (1,536)      (1,161)      (268)
Other consumer   (2,257)      (2,285)      (1,406)      (805)        (836)        (796)
Total net loan   $(10,320)   $(8,936)    $(10,071)   $(15,838)   $(13,254)   $(5,835)
charge-offs
Provision for    19,800       21,525       21,800       27,803       19,900       13,186
loan losses
Allowance
related to loans --          --          (312)        (195)        --           --
sold
Ending balance   $172,002    $162,522    $149,933    $138,516    $126,746    $120,100
                                                                                 
Supplemental                                                                      
information
Allowance to     0.86%         0.82%         0.78%         0.74%         0.75%         0.73%
loans
Allowance for
originated loans 1.21%         1.20%         1.20%         1.19%         1.19%         1.20%
to originated
loans^(1)
                                                                                 
Net charge-offs
to average loans                                                                  
(annualized)
Commercial real  0.12%         0.11%         0.11%         0.15%         0.38%         -0.01%
estate
Commercial       0.39%         0.28%         0.53%         1.02%         0.42%         0.51%
business
Total commercial 0.23%         0.18%         0.28%         0.49%         0.40%         0.18%
loans
Residential real 0.05%         0.07%         0.04%         0.02%         0.11%         0.03%
estate
Home equity      0.09%         0.10%         0.06%         0.25%         0.22%         0.05%
Other consumer   0.67%         0.79%         0.60%         0.61%         1.20%         1.14%
Total consumer   0.17%         0.19%         0.12%         0.15%         0.20%         0.08%
loans
Total loans      0.21%         0.18%         0.21%         0.36%         0.32%         0.14%
                                                                                 
Net charge-offs
of originated
loans to average                                                                  
originated loans
(annualized)^(1)
Commercial real  0.10%         0.07%         0.12%         0.18%         0.16%         -0.05%
estate
Commercial       0.45%         0.33%         0.64%         1.25%         0.54%         0.67%
business
Total commercial 0.26%         0.19%         0.36%         0.66%         0.32%         0.25%
loans
Residential real 0.10%         0.15%         0.09%         0.04%         0.27%         0.08%
estate
Home equity      0.19%         0.21%         0.13%         0.51%         0.40%         0.10%
Other consumer   0.64%         0.94%         0.59%         0.81%         1.25%         1.51%
Total consumer   0.28%         0.35%         0.18%         0.28%         0.38%         0.17%
loans
Total loans      0.27%         0.24%         0.30%         0.55%         0.34%         0.22%
                                                                                 
Nonperforming                                                                     
loans:
Originated^(1):                                                                   
Commercial real  $49,953     $50,848     $46,413     $46,881     $44,749     $43,119
estate
Commercial       47,523       47,066       37,375       30,714       39,682       20,173
business
Residential real 28,455       27,192       21,377       23,058       22,021       18,668
estate
Home equity      14,270       14,233       8,084        8,119        7,071        6,790
Other consumer   5,444        3,737        938          926          697          1,048
Total originated
nonperforming    145,645      143,076      114,187      109,698      114,220      89,798
loans
Total acquired
nonperforming    27,678       29,648       28,193       19,374       19,041       --
loans^(2)
Total
nonperforming    173,323      172,724      142,380      129,072      133,261      89,798
loans
Real estate      10,816       10,114       9,669        10,632       7,202        4,482
owned
Total
nonperforming    $184,139    $182,838    $152,049    $139,704    $140,463    $94,280
assets
                                                                                 
Accruing
troubled debt    $64,311     $46,280     $55,732     $42,140     $42,358     $43,888
restructurings
(TDR)
Loans 90 days
past due still   172,062      171,568      145,323      125,668      116,810      143,237
accruing^(3)
Total classified 720,197     708,468      693,006      732,762      753,536      748,375
loans^(4)
Total criticized $1,044,874  $1,002,659  $990,670    $1,030,471  $1,044,731  $1,144,222
loans^(5)
                                                                                 
Total
nonperforming    0.87%         0.88%         0.75%         0.69%         0.79%         0.55%
loans to loans
Total
nonperforming
originated loans 1.03%         1.07%         0.93%         0.96%         1.09%         0.91%
to originated
loans^(1)
Total
nonperforming
assets to loans  0.92%         0.93%         0.80%         0.74%         0.84%         0.57%
and real estate
owned
Total
nonperforming    0.50%         0.50%         0.42%         0.40%         0.34%         0.29%
assets to assets
Allowance to
nonperforming    99.2%         94.1%         105.3%        107.3%        95.1%         133.7%
loans
Texas ratio^(6)  16.10%        16.61%        14.16%        13.35%        8.97%         8.55%
                                                                                 
Originated       $14,100,190 $13,372,357 $12,232,568 $11,392,158 $10,517,021 $9,876,005
loans^(1)
Acquired         6,083,912    6,513,636    7,085,839    7,600,213    6,459,798    6,801,689
loans^(7)
Credit related
discount on      (148,883)   (175,981)   (211,881)   (228,855)   (185,900)   (205,111)
acquired
loans^(8)
Total Loans      $20,035,219 $19,710,012 $19,106,526 $18,763,516 $16,790,919 $16,472,583
                                                                                 
(1 ) Originated loans represent total loans excluding acquired loans.
(2 ) Nonperforming acquired loans include certain lines of credit that are considered
nonaccruing.The remaining credit discount, recorded at acquisition, is adequate to cover losses on
these balances.
(3) Includes acquired loans that were originally recorded at fair value upon acquisition, credit
card loans, and loans that have matured which are in the process of collection.
(4) Includes consumer loans, which are considered classified when they are 90 days or more past due.
Classified loans include substandard, doubtful, and loss, which are consistent with regulatory
definitions, and as described in Item 1, "Business", under the heading "Asset Quality Review" in our
Annual Report on 10-K for the year ended December 31, 2012.
(5) Criticized loans includes consumer loans when they are 90 days or more past due.Criticized
loans include special mention, substandard, doubtful, and loss.
(6) Represents ratio computed using non-GAAP financial measures, which we believe provide investors
with information that is useful in understanding our financial performance and position. See
Appendix A for further detail.
(7) Represents the carrying value of acquired loans plus the principal not expected to be collected.
(8) Represent principal on acquired loans not expected to be collected.

                                                                   
First Niagara
Financial                                                           
Group, Inc.
Key Statistics                                                      
(Share counts                                                       
in thousands)
                                                                   
               2013    2012                                    2011     
               March    December September June 30, March       December 
                31,      31,     30,                31,          31,
First Niagara
Financial                                                           
Group, Inc
capital ratios:
Tier 1 risk     9.45%    9.29%    9.51%     9.40%    14.66%   (1) 15.60%   (1)
based capital
Tier 1 common   7.64%    7.45%    7.59%     7.41%    12.47%   (1) 13.23%   (1)
capital^(2)
Total risk      11.38%   11.23%   11.48%    11.37%   16.75%   (1) 17.84%   (1)
based capital
Leverage        6.92%    6.75%    6.83%     6.32%    9.67%    (1) 9.97%    (1)
Equity to       13.43%   13.39%   13.70%    13.72%   13.73%   (1) 14.62%   (1)
assets
Tangible common
equity to       5.95%    5.77%    5.87%     5.69%    8.13%    (1) 8.57%    (1)
tangible
assets^(2)
                                                                   
First Niagara
Bank, N.A                                                           
capital ratios:
Tier 1 risk     10.15%   9.94%    10.19%    9.63%    14.69%   (1) 14.66%   (1)
based capital
Total risk      10.89%   10.66%   10.88%    10.57%   15.66%   (1) 16.47%   (1)
based capital
Leverage        7.43%    7.23%    7.32%     6.48%    9.69%    (1) 9.38%    (1)
                                                                   
Number of       427     430     432      452     334        333     
branches
Full time
equivalent      5,875   5,927   6,036    6,103   4,753      4,827   
employees
                                                                   
Share
information and                                                     
per share
metrics:
Common shares   353,008 352,621 352,632  352,665 351,936    351,834 
outstanding
Preferred
shares          14,000  14,000  14,000   14,000  14,000     14,000  
outstanding
Treasury shares 12,994  13,381  13,370   13,337  14,066     14,168  
Market price    $8.86  $7.93  $8.07   $7.65  $9.84     $8.63  
(NASDAQ: FNFG):
Book value per  13.19   13.15   13.11    12.84   13.00      12.79   
share^(3)
Tangible book
value per       5.84    5.65    5.59     5.30    7.86       7.62    
share^(2)(3)
Price/Book      67.17%   60.30%   61.56%    59.58%   75.69%      67.47%   
Price/Tangible  151.71%  140.35%  144.36%   144.34%  125.19%     113.25%  
book^(2)
Common stock    $0.08  $0.08  $0.08   $0.08  $0.08     $0.16  
dividends
Preferred stock 0.54    0.54    0.54     0.54    0.37       --     
dividends
Dividend payout 47.06%   53.33%   53.33%    N/M      50.00%      84.21%   
ratio
Dividend yield  3.66%    4.01%    3.94%     4.21%    3.27%       7.36%    
(annualized)
                                                                   
N/M Not                                                             
meaningful
(1) Ratios reflect the impact of our capital raise completed in December 2011,
the proceeds of which were used to consummate the acquisition of branches from
HSBC Bank-USA, National Association in May 2012.
(2) The tables in this earnings release present computation of earnings and
certain other ratios using non-GAAP financial measures, which we believe
provide investors with information that is useful in understanding our
financial performance and position. See Appendix A for further detail.
(3) Share count excludes unallocated ESOP shares and unvested restricted stock
shares.

                                                                        
First Niagara                                                            
Financial Group, Inc.
Appendix A - Non-GAAP                                                    
Reconciliation
(in thousands, except                                                    
per share amounts)
                                                                        
                     2013      2012                                         2011
                     First    Fourth   Third    Second    First    Fourth
                     Quarter  Quarter  Quarter  Quarter   Quarter  Quarter
Financial ratios
computed on an                                                           
operating basis^(1):
Earnings per basic    $0.17    $0.19    $0.19    $0.19     $0.19    $0.24
share
Earnings per diluted  0.17      0.19      0.19      0.19       0.19      0.24
share
Weighted average
shares outstanding -  349,278   349,071   349,001   348,941    348,823   304,065
basic^(2)
Weighted average
shares outstanding -  349,999   349,663   349,371   348,941    349,069   304,341
diluted^(2)
Noninterest income as
a percentage of net   25.13%     25.48%     26.43%     22.96%      22.39%     20.80%
revenue^(4)
Pre-tax,              117,776   125,281   129,333   136,645    127,774   123,672
pre-provision income
Pre-tax,
pre-provision income  0.34      0.36      0.37      0.39       0.37      0.41
per diluted share
Pre-tax,
pre-provision return  1.30%      1.37%      1.46%      1.51%       1.55%      1.55%
on average assets
Net interest          3.39%      3.42%      3.54%      3.37%       3.34%      3.48%
margin^(3)
Interest yield on     4.25%      4.39%      4.47%      4.59%       4.62%      4.76%
average loans^(3)
Rate paid on
interest-bearing      0.44%      0.48%      0.51%      0.61%       0.79%      0.82%
liabilities^(3)
Efficiency ratio      66.86%     65.24%     64.71%     60.63%      59.08%     59.61%
Effective tax rate    31.0%      27.0%      30.9%      33.5%       35.0%      34.7%
Return on average     0.74%      0.83%      0.83%      0.80%       0.85%      0.90%
assets
Return on average     5.50%      6.06%      6.04%      5.95%       5.81%      6.82%
equity
Return on average     11.62%     12.89%     13.11%     10.86%      9.24%      12.02%
tangible equity^(5)
Return on average     5.24%      5.86%      5.83%      5.72%       5.79%      6.93%
common equity
Return on average
tangible common       12.05%     13.57%     13.86%     11.13%      9.63%      12.36%
equity^(6)
                                                                        
Reconciliation of net
interest income on
operating basis to                                                       
reported net interest
income^(1):
Total net interest
income on operating   $266,130 $268,566 $269,605 $267,371  $242,371 $242,513
basis (Non-GAAP)
Additional premium
amortization on       --       (16,280)  --        (8,358)    --        --
securities portfolio
Total reported net
interest income       266,130   252,286   269,605   259,013    242,371   242,513
(GAAP)
                                                                        
Reconciliation of
noninterest income on
operating basis to                                                       
reported noninterest
income^(1):
Total noninterest
income on operating   $89,312  $91,821  $96,866  $79,703   $69,908  $63,685
basis (Non-GAAP)
Gain on securities
portfolio             --       --       5,337     15,895     --       --
repositioning
Total reported
noninterest income    89,312    91,821    102,203   95,598     69,908    63,685
(GAAP)
                                                                        
Reconciliation of
noninterest expense
on operating basis to                                                    
reported noninterest
expense^(1):
Total noninterest
expense on operating  $237,666 $235,106 $237,138 $210,429  $184,505 $182,526
basis (Non-GAAP)
Merger and
acquisition           --       3,678     29,404    131,460    12,970    6,149
integration expenses
Restructuring charges --       --       --       3,750      2,703     13,496
Total reported
noninterest expense   $237,666 $238,784 $266,542 $345,639  $200,178 $202,171
(GAAP)
                                                                        
Reconciliation of net
operating income to                                                      
net income^(1):
Net operating income  $67,285  $75,358  $74,027  $72,188   $70,053  $72,057
(Non-GAAP)
Nonoperating income
and expenses, net of                                                     
tax:
Additional premium
amortization on       --       11,633    --        5,558      --        --
securities portfolio
Gain on securities
portfolio             --       --        (3,469)   (10,331)   --        --
repositioning
Merger and
acquisition           --       2,628     19,112    85,448     8,431     4,256
integration expenses
Restructuring charges --       --       --       2,437      1,757     9,340
Total nonoperating    --       14,261    15,643    83,112     10,188    13,596
expenses, net of tax
Net income (GAAP)     $67,285  $61,097  $58,384  $(10,924) $59,865  $58,461
                                                                        
Reconciliation of net
operating income
available to common
stockholders to net                                                      
income available to
common
stockholders^(1):
Net operating income
available to common   $59,738  $67,811  $66,480  $64,641   $64,938  $72,057
stockholders
(Non-GAAP)
Nonoperating income
and expenses, net of                                                     
tax:
Additional premium
amortization on       --       11,633    --       5,558      --        --
securities portfolio
Gain on securities
portfolio             --       --       (3,469)   (10,331)   --        --
repositioning
Merger and
acquisition           --       2,628     19,112    85,448     8,431     4,256
integration expenses
Restructuring charges --       --       --       2,437      1,757     9,340
Total nonoperating
income and expenses,  --       14,261    15,643    83,112     10,188    13,596
net of tax
Net income available
to common             $59,738  $53,550  $50,837  $(18,471) $54,750  $58,461
stockholders (GAAP)
                                                                        
Computation of
pre-tax,pre-provision                                                    
income:
Net interest income   $266,130 $252,286 $269,605 $259,013  $242,371 $242,513
Noninterest income    89,312   91,821   102,203  95,598    69,908   63,685
Noninterest expense   (237,666) (238,784) (266,542) (345,639)  (200,178) (202,171)
Pre-tax,
pre-provision income  117,776   105,323   105,266   8,972      112,101   104,027
(GAAP)
Add back:
non-operating premium --       16,280    --       8,358      --       --
amortization
Add back:
non-operating         --       3,678     29,404    135,210    15,673    19,645
noninterest expenses
^(1)
Less: non-operating
noninterest income    --       --       (5,337)   (15,895)   --       --
^(1)
Pre-tax,
pre-provision income  $117,776 $125,281 $129,333 $136,645  $127,774 $123,672
(Non-GAAP)^(1)
                                                                        
(1 ) Net interest income, noninterest income and expense on an operating basis, net
operating income, and pre-tax, pre-provision income on an operating basis are non-GAAP
measures that we believe provide meaningful comparisons of our underlying operational
performance and facilitates investors' assessments of business and performance trends in
comparison to others in the financial services industry. In addition, we believe
exclusion of these nonoperating items enables management to perform a more effective
evaluation and comparison of our results and to assess performance in relation to our
ongoing operations.
(2) Share count excludes unallocated ESOP shares and unvested restricted stock shares.
(3) Yields and rates calculated on a tax equivalent basis.
(4) Net revenue is comprised of net interest income and noninterest income.
(5) Tangible equity is a non-GAAP measure and excludes goodwill and other intangibles.
(6) Tangible common equity is a non-GAAP measure and excludes goodwill and other
intangibles as well as preferred stock.

First Niagara
Financial                                                                       
Group, Inc.
Appendix A -
Non-GAAP                                                                        
Reconciliation
(Cont.)
(in thousands,
except per                                                                      
share amounts)
                                                                               
              2013         2012                                                    2011
              First       Fourth      Third       Second      First       Fourth
              Quarter     Quarter     Quarter     Quarter     Quarter     Quarter
Computation of
Ending                                                                          
Tangible
Common Equity:
Total
stockholders'  $4,946,673  $4,926,558  $4,915,421  $4,818,213  $4,875,446  $4,798,178
equity
Less: Goodwill
and other      (2,567,681) (2,617,810) (2,626,625) (2,631,605) (1,796,394) (1,803,240)
intangibles
Less:
Preferred      (338,002)   (338,002)   (338,002)   (338,002)   (338,002)   (338,002)
stockholders'
equity
Tangible       $2,040,990  $1,970,746  $1,950,794  $1,848,606  $2,741,050  $2,656,936
common equity
                                                                               
Computation of
Average                                                                         
Tangible
Equity:
Total
stockholders'  $4,958,402  $4,945,132  $4,872,605  $4,879,791  $4,850,276  $4,188,800
equity
Less: Goodwill
and other      (2,609,409) (2,619,322) (2,626,666) (2,206,682) (1,800,613) (1,809,690)
intangibles
Tangible       $2,348,993  $2,325,810  $2,245,939  $2,673,109  $3,049,663  $2,379,110
equity
                                                                               
Computation of
Average                                                                         
Tangible
Common Equity:
Total
stockholders'  $4,958,402  $4,945,132  $4,872,605  $4,879,791  $4,850,276  $4,188,800
equity
Less: Goodwill
and other      (2,609,409) (2,619,322) (2,626,666) (2,206,682) (1,800,613) (1,809,690)
intangibles
Less:
Preferred      (338,002)   (338,002)    (338,002)    (338,002)    (338,002)    (66,226)
stockholders'
equity
Tangible       $2,010,991  $1,987,808  $1,907,937  $2,335,107  $2,711,661  $2,312,884
common equity
                                                                               
Computation of                                                                  
Texas Ratio:
Nonperforming  $184,139    $182,838    $152,049    $139,704    $140,463    $94,280
Assets
Loans 90 days
past due still 172,062      171,548      145,323      125,668      116,810      143,237
accruing^(1)
Sum of
nonperforming
assets and     $356,201    $354,386    $297,372    $265,372    $257,273    $237,517
loans 90 days
past due still
accruing
                                                                               
Tangible       $2,040,990  $1,970,746  $1,950,794  $1,848,606  $2,741,050  $2,656,936
common equity
Allowance for  172,002      162,522      149,933      138,516      126,746      120,100
loan losses
Sum of
tangible
common equity  $2,212,992  $2,133,268  $2,100,727  $1,987,122  $2,867,796  $2,777,036
and allowance
for loan
losses
                                                                               
Sum of
nonperforming
assets and
acquired loans
90 days past
due still      16.10%        16.61%        14.16%        13.35%        8.97%         8.55%
accruing/Sum
of tangible
common equity
and allowance
for loan
losses
                                                                               
Computation of
Tier 1 Common                                                                   
Capital:
Tier 1 capital $2,356,763  $2,264,679  $2,225,121  $2,128,702  $3,009,727  $2,962,031
Less:
Qualifying
restricted     (112,236)   (112,025)    (111,820)    (111,630)    (111,453)    (111,284)
core capital
elements
Less:
Perpetual
non-cumulative (338,002)   (338,002)    (338,002)    (338,002)    (338,002)    (338,002)
preferred
stock
Tier 1 common
capital        $1,906,525  $1,814,652  $1,775,299  $1,679,070  $2,560,272  $2,512,745
(Non-GAAP)
                                                                               
(1) Includes
acquired loans
that were
originally
recorded at
fair value
upon
acquisition,                                                                    
credit card
loans, and
loans that
have matured
which are in
the process of
collection.

CONTACT: First Niagara Contacts
        
         Investors:
         Ram Shankar
         Senior Vice President, Investor Relations
         (716) 270-8623
         ram.shankar@fnfg.com
        
         News Media:
         David Lanzillo
         Senior Vice President, Corporate Communications
         (716) 819-5780
         david.lanzillo@fnfg.com
 
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