Profit at First Niagara falls in third quarter

First Niagara Financial Group, Inc. (NASDAQ: FNFG) earned $50.8 million in the third quarter, down from $57 million a year earlier.

Earnings per share in the period totaled 14 cents, down from 19 cents a share in the third quarter of 2011. The third quarter’s results were improved from a loss of $18.5 million, or 5 cents a share, in the second quarter.

The net income total also includes a preferred stock dividend of $7.5 million. Excluding that item, the Buffalo–based banking company earned $58.4 million.

Operating income for the period, which excludes items like gains on securities and merger costs, was $74 million, up from $73.6 million a year earlier and $66.6 million in the second quarter this year.

“We have worked diligently to put the pieces together by assimilating a strong team and culture, an enviable footprint and franchise and strong ties to our growing base of customers and communities,” First Niagara President and CEO John Koelmel said in a news release. “As we look ahead, our entire organization — from top to bottom — is now singularly focused on running the business we have built and optimally executing our operating plan.”

First Niagara Bank has 430 branches, $36 billion in assets, and 6,000 employees in upstate New York, Pennsylvania, Connecticut, and Massachusetts.

The bank is number four in the Syracuse metro area deposit market with 21 branches, more than $808 million in deposits, and a deposit market share of more than 7.5 percent, according to the latest statistics from the Federal Deposit Insurance Corp. First Niagara is also number four in the Utica-Rome market with nine branches, $405.9 million in deposits, and a market share of about 11 percent.

The bank is number two in the Binghamton market with 10 branches, $342.5 million in deposits, and a market share of 12.8 percent.

Contact Tampone at ktampone@cnybj.com