First Niagara Financial Group (FNFG) in Buffalo, N.Y., met quarterly earnings estimates as its lending income ticked up and margins widened.
The $37 billion-asset company on Friday reported a profit of $63.6 million in the second quarter, after losing $18.5 million in the second quarter of 2012, when it recorded $135.2 million in expenses related to its
Net interest income rose 4%, to $269.4 million, as net interest margin widened by 10 basis points, to 3.36%. Total loans and leases rose 9%, to $20.5 billion, led by an expansion in commercial lending. Indirect auto loans ballooned to more than $1 billion from $185 million a year earlier, as the company originated $296 million in the loans in the second quarter.
Noninterest income dipped less than 1%, to $95.5 million, despite a 24% rise in fees on deposit accounts, to $26.5 million, as mortgage banking and miscellaneous income fell.
Provision for credit losses dropped nearly $3 million, to $25.2 million, and net chargeoffs fell 17%, to $13.1 million.
First Niagara is currently searching for a new chief executive after