The geographic area staked out by First Niagara Bank in upstate New York and Pennsylvania is not fast growing and hasn't been for decades, yet banks in the region hardly seem to be suffering.

Buffalo-based M&T Bank, which now has $70 billion of assets and a footprint stretching into the Virginias, reported a 40 percent jump in profits in the third quarter from the same period last year. Northwest Bancorp in Warren, Pa., Arrow Financial Corp. in Glens Fall, N.Y., Community Bank System in Syracuse all reported strong increases in quarterly net income year over year, and though earnings at NBT Bancorp were flat, 2008 was a record year for the Norwich, N.Y., company.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.