First Niagara Financial Group (FNFG) in Buffalo, N.Y., generated higher earnings in its first quarter since the
The $36 billion-asset company's first-quarter earnings rose 12% from a year earlier, to $59.7 million, or 17 cents a share.
Noninterest income rose 28% from a year earlier, to $89.3 million, because of higher service charges and fees. Deposit-related charges rose 46% from a year earlier, to $24.8 million.
First Niagara's net interest income rose 10% from the first quarter of 2012, to $266 million, as borrowing costs fell 55%, to $15.2 million. Its net interest margin expanded by 5 basis points from a year earlier, to 3.39%. Its loan-loss provision was relatively flat from a year earlier, at $20.2 million, and net chargeoffs fell 22%, to $10.3 million.
Higher expenses cut into the bottom line. Noninterest expenses rose 19% from a year earlier, to $237.6 million, including a $6.3 million charge related to the departures of former CEO John Koelmel and Oliver Sommer, who had been vice president of corporate development.
The company also said Monday that a committee chaired by Nathaniel Woodson and assisted by the search firm Korn/Ferry is progressing on a search for a permanent replacement for Koelmel.
