RoryThackerol的部落格

Summary

• Initial Niagara Fiscal Team has just reported that it will be paying its 1st quarter 2015 dividend.
• I highlighted the financial institution as a growing regional powerhouse in the northeastern US set to develop loans and deposits, but earnings have lagged and issues with regards to the dividend are commonplace.
• The dividend currently being preserved is very good information but it most likely won't end the stock from slipping.

1st Niagara Economic Group (NASDAQ:FNFG) has just described that it will be having to pay its first quarter 2015 dividend. The dividend to be paid has when once again been held at $.08. This announcement indicates that the company will also pay a quarterly dividend of $.539063 per share on its series B chosen stock. Equally dividends will be payable on February 17, 2015, to shareholders of report on February 7, 2015. This information arrives soon after a extremely mixed quarter which I just documented on. In This fall, revenues arrived in at $347 million although functioning net income was $61.seven million, or $.seventeen for every share. Even though hardly lacking revenues and beating earnings, it is crucial to note that calendar year-more than-year earnings declined. Last year's quarter observed $70.1 million, or $.20 for each diluted share in earnings. Quarter in excess of quarter, earnings dipped somewhat as effectively. So the financial institution nonetheless easily has the cash flow to include the dividend.

In my in-depth write-up on Initial Niagara, I highlighted the lender as a expanding regional powerhouse in the northeastern US. I predicted that it was very likely the firm would be seeing strong bank loan, deposit and earnings expansion in 2014 and into 201 minix neo x8 android tv box. Even though loan and deposit growth happened, I did not see earnings declining like this. Despite the undesirable quarter, the bank presently has more than sufficient coverage for its dividend. In my thesis, I in fact experienced hinted that dividend raises could be in the firm's future. This of system did not pan out and I never see it happening at any time quickly.

The inadequate earnings for the fourth quarter report ended up undoubtedly bearish. The dividend being maintained is welcome information for longs, but almost certainly won't end the stock from slipping back to the $7.00 range. 1st Niagara is in changeover. The bank's management is functioning diligently to improve operational efficiencies. The lender has been consolidating operations in the few limited months considering that I opined in depth. It is closing branches and strategizing to make sure extended-phrase sustainability and progress. As shareholders, the servicing of the dividend is important. With earnings trending down, despite being covered, a lower is not fully out of the question in the potential ought to the damaging earnings trajectory keep on. Even though I have a hold ranking on First Niagara at this time, the preserved dividend is welcome news. Presented that it has sufficient running income to satisfy its dividends, if the marketplace sends this stock back again below $7.00 a share, the prolonged-phrase trader is almost certainly being provided a compelling cost. The generate would be north of four.5%. Once more although, 2015 will be crucial. Before I can even feel about amending my hold recommendation, we are likely to need to see regardless of whether the subsequent handful of quarters demonstrate advancement prior to I can comfortably advise a acquire right here.