BUFFALO — First Niagara Financial Group, Inc. (NASDAQ: FNFG) today reported that its first-quarter net income declined 13 percent from the year-ago period, amid restructuring costs to close branch offices.
The Buffalo–based parent company of First Niagara Bank N.A., generated net income available to common shareholders of $51.9 million, or 15 cents a share, in the first quarter, which included $8.3 million in after-tax restructuring and severance expensesrelated to branch closures and staffing moves.
That’s down from $59.7 million, or 17 cents, in the first quarter of 2013, which included $4.3 million in after-tax charges related to executive departures.
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Excluding restructuring charges, First Niagara produced operating earnings of 17 cents a share in this year’s first quarter, which was in line with analysts’ consensus estimates, according to Yahoo Finance data, citing the estimates of 12 stock analysts.
First Niagara, the fourth largest bank in the 16 county Central New York market ranked by deposit market share, closed 10 branches companywide in the first quarter. They included two Southern Tier offices — one each in Owego and Conklin. First Niagara also shuttered five branches in Pennsylvania and three in Western New York. The moves came in response to customers’ increased use of its online, mobile, and telephone-banking options, the banking company said when first announcing the closings in January.
First Niagara said in today’s earnings report that the first quarter was highlighted by continued balance-sheet growth, steady credit quality and stable core net interest margin.
Average loans increased 8 percent annualized compared to the prior quarter. Average commercial business and real-estate loans increased 9 percent annualized over the previous earnings period.
“In the first quarter of 2014, business momentum remained strong…,” Gregory W. Norwood, CFO, said in the earnings report.
The bank’s average consumer loans increased 6 percent annualized, led by continued growth in indirect auto-loan balances, partially offset by a decline in residential-mortgage loans.
First Niagara says it is a multi-state community-oriented bank with 411 branches, $38 billion in assets, $28 billion in deposits, and about 5,800 employees serving New York, Pennsylvania, Connecticut, and Massachusetts.
Contact Rombel at arombel@cnybj.com
