BUFFALO, N.Y. — First Niagara Financial Group, Inc. (NASDAQ: FNFG) has increased the non-cash accounting charge it took against its third-quarter earnings to $1.1 billion, from the $800 million it had estimated less than three weeks ago.
The Buffalo–based parent company of First Niagara Bank N.A. revealed the increased write-down in the Form 10-Q it filed with the U.S. Securities & Exchange Commission (SEC) on Monday and indicated that its declining stock price was a factor.
First Niagara first announced the $800 million write-down, which it called a goodwill impairment charge, in its Oct. 24 earnings report. The banking company reported a third-quarter net loss available to common shareholders of $665 million, or $1.90 per share, that day.
(Sponsored)
Close the Skills Gap: Build Your Workforce with MACNY Registered Apprenticeship Program
In today’s competitive labor market, finding qualified candidates through traditional hiring methods has never been more challenging. As industries evolve and workforce demands shift, employers are facing a growing skills
National Labor Relations Board Bans “Captive Audience” Meetings
Since 1948, the National Labor Relations Board respected an employer’s right to hold mandatory paid employee meetings during company time so that its views about unionization could be directly communicated
First Niagara’s stock price tumbled from $8.44 to $7.30 on the Oct. 24 trading day, following the release of the earnings report before the market open.
In its Nov. 10 SEC filing, First Niagara explained how it calculates the estimated fair value of the goodwill of its banking unit, including making a series of judgments and estimates. The calculation takes into account factors including its stock price, market interest rates, the banking industry environment, its tangible book value, its price-to-earnings ratio, and valuations of its loans and deposits.
“Based on our review, we concluded that the carrying amount of the Banking reporting unit exceeded its estimated fair value,” First Niagara said.
The banking company’s stock rose 6 cents to close at $7.51 today. Year to date, the share price is down about 30 percent.
First Niagara is a multi-state, community-oriented bank that currently operates about 411 branches, and has $38 billion in assets, $28 billion in deposits, and about 5,800 employees serving New York, Pennsylvania, Connecticut, and Massachusetts.
First Niagara is the fourth largest bank in the 16-county Central New York market ranked by deposit market share.
Contact Rombel at arombel@cnybj.com
