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First Niagara Financial Group Inc (FNFG) |
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First Niagara Financial Group Inc's Comment on Competitors and Industry Peers
Our primary lending and deposit gathering areas are generally concentrated
in the same areas as our branches. We face significant competition in both making
loans and attracting deposits in our markets as they have a high density of
financial institutions, some of which are significantly larger than we are and
have greater financial resources. Competition for loans comes principally from
commercial banks, savings banks, savings and loan associations, mortgage banking
companies, credit unions, insurance companies, and other financial services
companies. Our most direct competition for deposits has historically come from
commercial banks, savings banks, and credit unions, as well as additional competition
for deposits from the mutual fund industry, internet banks, securities and brokerage
firms, and insurance companies, as well as nontraditional competitors such as
large retailers offering bank-like products. In addition to the traditional
sources of competition for loans and deposits, payment processors and other
companies exploring direct peer-to-peer banking provide additional competition
for our products and services. In these marketplaces, opportunities to grow
and expand are primarily a function of how we are able to differentiate our
product offerings and customer experience from our competitors. We offer a variety
of financial services to meet the needs of the communities that we serve, functioning
under a philosophy that includes a commitment to customer service and the community.
We have created a customer-centric organization structure that brings our customers'
needs and preferences closer to the executive team that enables us to be more
responsive to our customers.
More recently, competition for loans, particularly commercial loans, has intensified
given the weak economic activity within our markets and nationally. This increased
competition from banks and non-banks has resulted in accelerated loan prepayments,
particularly in our investor owned commercial real estate portfolio as borrowers
gravitate towards financial institutions that are more willing to compete on
price, loan structures or tenor. This competition is most notable in Eastern
Pennsylvania and New England.
We offer a variety of financial services to meet the needs of the communities
that we serve, functioning under a philosophy that includes a commitment to
customer service and the community. As of December 31, 2015, we operated 392
bank branches, including 190 in New York primarily located near Buffalo, Rochester,
Syracuse and Albany; 118 branches in Pennsylvania primarily located near Philadelphia,
Pittsburgh, Erie, and Warren; 75 branches in Connecticut primarily located near
New Haven and Hartford; and nine in Western Massachusetts primarily located
near Springfield.
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