First Niagara Financial Group in Buffalo, N.Y., which is being sold to KeyCorp, cited restructuring and merger-related charges in reporting a 30% profit decline.
The $40 billion-asset company's net income was $43.3 million in the fourth quarter, down from $61.5 million in the fourth quarter of 2014, it said Friday. Earnings per share were 12 cents, versus 17 cents in the year-earlier period.
Noninterest expenses rose 13% to $265 million. First Niagara recorded $3 million in restructuring charges and $14 million in merger-related costs tied its agreement to be sold to Cleveland-based KeyCorp. The $4.1 billion cash-and-stock deal was announced Oct. 30 and is expected to close in the third quarter.
A 2% drop in net interest income to $266.5 million was another factor in the lower profit, First Niagara said. While total loans rose 4% to $23.8 billion, the net interest margin narrowed by 13 basis points to 2.98%.
Noninterest income rose 16% to $89.4 million.