Aston Associates Provides Bank Management & Bank Consulting Services

First Niagara Financial Group

admin — Thu, 10 Dec 2009 00:23:56 +0000

“Amid this backdrop First Niagara (FNFG, Buy) is our favorite name… In a difficult environment we like self-help stories such First Niagara as we see higher than appreciated normalized EPS via synergies from recent deals. Moreover, the recent equity raise provides capital certainty” – Goldman Sachs, September 2009.

First Niagara Financial Group
FNFG management deserves a significant measure of credit for not stretching for growth at prohibitive cost in better times. Instead, management worked to optimize the existing franchise, and positioned the company to eventually take advantage when an attractive expansion opportunity presented itself. The company’s restored capital cushion following the recent equity raise also serves as a significant buffer for potential problems. Sandler O’Neill & Partners, January 2010.

St. George Bank

admin — Thu, 10 Dec 2009 00:23:01 +0000

“Our view: St. George’s FY 01 result hit all the right buttons… easily the best of the banks who have reported so far. The main positive result was the 15% growth in recurring non-interest income in 2H01… reflecting continued growth in managed fund fees and Best Bank related increases… St. George has made exceptional progress in diversifying its revenue mix… St. George’s efficiency levels also compare favourably to the major banks with the cost to income ratio plunging 5% over the year. It remains encouraging that customer and staff satisfaction increased.” – “FY01 Result: Best Bank”, Deutsche Bank, November 7, 2001.

First Security Corporation

admin — Thu, 10 Dec 2009 00:22:44 +0000

“First Security’s design program, Project VISION, is resulting in significant improvements in profitability and efficiency.” - “The Best the World Has to Offer: Our Top Global Stock Picks for 1997″, Salomon Brothers

First Niagara Financial Group

admin — Thu, 10 Dec 2009 00:16:43 +0000

“Upstate NY Powerhouse Spreads its Wings: With its strong capital position and conservative underwriting, the company has been increasing its market share throughout the economic downturn while generating relatively strong operating performances. Furthermore, it has a long and outstanding track record for superb credit quality. Accordingly, it has benefited from the economic downturn by capitalizing on dislocations in and out of market as its competitors are inwardly focused on credit quality and capital concerns.”

“Management has been on the offensive and has capitalized on growth opportunities as many of its competitors are inwardly focused on balance sheet issues. Very strong credit quality and capital ratios underscore its keen risk-management skills, as does its ability to negotiate covenants associated with recent acquisitions that limit credit risk.” - Raymond James, September 2009.”

First Niagara Financial Group
FNFG: Momentum to Continue in New Year, Reiterate Outperform Rating. As we head into 2010, we revisit our longer term view on the shares of FNFG. Actions taken in 2009 are expected to continue to build momentum in the coming year and beyond. While we make no changes to our 2010 estimates at this time, we we increase our price target to $16 from $15 reflecting stronger earnings power. Keefe, Bruyette & Woods, January 2010.

U.S. Bancorp

admin — Thu, 10 Dec 2009 00:16:22 +0000

“[U.S. Bancorp] was recently ranked as the number two financial institution in the world for shareholder performance among the world’s 400 biggest banks, insurers and securities houses in total shareholder return over a five-year span.” - The Economist, 2002.

U.S. Bancorp
“Demonstrating robust loan growth, tight efficiency, and clean credit quality, Star Banc delivered a hefty annualized return on assets… The institution endured scathing criticism in 1992 after rejecting a $42 per-share buyout offer from rival Fifth Third Bancorp. Fighting back, the bank delved into a design that sharply improved Star Banc’s profitability.” – “Star Banc Shines”, American Banker, July 1994.

CEO Comments – Column 3

admin — Thu, 10 Dec 2009 00:05:21 +0000

“[It] was more than just another successful year for First Security, it was a year in which we dramatically improved our focus. Through Project VISION, a corporate-wide design, we enhanced our focus on customers, shareholders, employees and the communities we serve, and begin [next year] as one of the premier financial services companies in the nation.”

Spencer F. Eccles
Chairman and Chief Executive Officer
First Security Corporation

CEO Comments – Column 2

admin — Thu, 10 Dec 2009 00:03:34 +0000

“Aston have the ability to demonstrate-regardless of how efficient or effective your organization is managed-that there is considerable room for improvement. They certainly demonstrated this to our organization, obtaining results that we did not believe possible. Paul Allen and his team are extremely professional and work well with the employees of the organization.”

Oliver W. Wadell
Chariman of the Board
Star Banc Corporation

CEO Comments – Column 1

admin — Wed, 09 Dec 2009 23:59:02 +0000

“Aston Associates was a natural choice for First Niagara when we were evaluating our opportunities in the midst of the financial crisis. Ever since we partnered with Aston in 2004 to develop our Strategic Blueprint, we have found them to be an invaluable advisor. In 2009, Aston has helped us reevaluate our strategy in light of the changing economic environment; organize our due diligence efforts around two transformative acquisitions combining for 140 branches and $8.3 billion in deposits, and drive the integrations of both of the acquired entities. Aston’s knowledge of the financial services arena; their expertise in evaluating and structuring transactions; and their ability to adapt to the changing environment are absolutely indispensible.”

John Koelmel
Chief Executive Officer
First Niagara Financial Group

“Best Bank has truly delivered, we’ve got a very solid base, and very strong credit quality performance, so those are wonderful assets to start with. Couple that with the differentiated customer service position that we have and staff who love working in St. George… so those are very important ingredients for us going forward.”

Gail Kelly
Chief Executive Officer
St. George Bank Limited

Xenith Bank – Seasoned management team starting a commercial bank in the Richmond, VA market

admin — Wed, 09 Dec 2009 23:31:17 +0000

Initiated a market and competitive analysis
Developed a financial model for their business case
Worked with the founders to develop a capital raising strategy

BankBoston Corporation

admin — Wed, 09 Dec 2009 23:30:53 +0000

ROE up from 16 to 24 percent; operations work quality up 50%; loan applications processed 3 times faster; telebanking wait times reduced by 70%; and sales productivity up 40%
Revenue impact of $88 million and process cost reduction of $188 million
Stock price rose 55% (versus 15% S&P bank index)
Merger-of-equals with Fleet Financial Corporation valued at $16 billion and now Bank of America