First Niagara Profit Falls on Restructuring Expenses

First Niagara Financial Group's (FNFG) first-quarter profit fell 11.7% as job cuts and branch closures increased expenses.

Net income at the Buffalo, N.Y., company was $59.4 million, or 15 cents per share, two or cents less than the average estimate of analysts polled by Bloomberg. First Niagara says its earnings per share would have been 17 cents excluding a restructuring charge.

The $38 billion-asset First Niagara in January said it would eliminate 170 administrative jobs and close 10 branches, as part of a consolidation of the branches it acquired from HSBC in 2012. First Niagara recorded a $10.4 million pre-tax charge in the quarter related to the job cuts and branch closures.

Noninterest expenses rose 0.3% to $238.4 million, excluding the charge, in part because of technology and consulting expenses related to First Niagara's previously announced plan to upgrade its technology.

Net interest income, after a provision for credit losses, was little changed at $245.9 million, compared with a year ago. Noninterest income fell 14% to $76.7 million, on lower deposit service charges, insurance commissions, mortgages and capital-markets income.