First Niagara Financial Group said Friday that net income rose 8.9 percent in the first quarter from a year ago, as revenues from the purchase of HSBC Bank USA’s branch network rose faster than expenses.
The Buffalo-based parent of First Niagara Bank, the No. 2 bank in Western New York and one of the 25 largest U.S.-based banks, reported profits for shareholders of $59.7 million, or 17 cents per share, up from $54.8 million, or 16 cents per share, in the first quarter of 2012.
Comparisons to a year ago are heavily skewed by the addition of the HSBC operation, including retail, small business and brokerage customers. First Niagara completed its purchase of 195 HSBC branches on May 17 of last year, but then sold 64 branches to KeyCorp, Community Bank System and Five Star Bank, while consolidating 35 overlapping offices.
Compared to the fourth quarter, when the bank already owned and operated the HSBC branches, net income for shareholders rose 11.4 percent from $53.6 million and 15 cents per share.
Not including preferred stock dividends of $7.5 million in the current and fourth quarter and $5.1 million a year ago, bottom-line profits rose 12.4 percent from a year ago, to $67.3 million from $59.9 million, and were up 10.1 percent from the fourth quarter.
Net interest income from taking deposits and making loans rose 9.8 percent from a year ago and 5.5 percent from the fourth quarter, to $266.1 million. The bank set aside $20.2 million for loan losses, similar to $20 million a year ago, but down from $22 million in the fourth quarter, as credit quality improved.
Fee income rose 27.8 percent to $89.3 million from a year ago, but fell 2.7 percent from $91.8 million in the fourth quarter, as mortgage banking revenues declined.
Operating expenses rose 18.7 percent from a year ago, but fell less than 1 percent from the fourth quarter, to $237.7 million, as the bank tightened the reins.
email: jepstein@buffnews.com
The Buffalo-based parent of First Niagara Bank, the No. 2 bank in Western New York and one of the 25 largest U.S.-based banks, reported profits for shareholders of $59.7 million, or 17 cents per share, up from $54.8 million, or 16 cents per share, in the first quarter of 2012.
Comparisons to a year ago are heavily skewed by the addition of the HSBC operation, including retail, small business and brokerage customers. First Niagara completed its purchase of 195 HSBC branches on May 17 of last year, but then sold 64 branches to KeyCorp, Community Bank System and Five Star Bank, while consolidating 35 overlapping offices.
Compared to the fourth quarter, when the bank already owned and operated the HSBC branches, net income for shareholders rose 11.4 percent from $53.6 million and 15 cents per share.
Not including preferred stock dividends of $7.5 million in the current and fourth quarter and $5.1 million a year ago, bottom-line profits rose 12.4 percent from a year ago, to $67.3 million from $59.9 million, and were up 10.1 percent from the fourth quarter.
Net interest income from taking deposits and making loans rose 9.8 percent from a year ago and 5.5 percent from the fourth quarter, to $266.1 million. The bank set aside $20.2 million for loan losses, similar to $20 million a year ago, but down from $22 million in the fourth quarter, as credit quality improved.
Fee income rose 27.8 percent to $89.3 million from a year ago, but fell 2.7 percent from $91.8 million in the fourth quarter, as mortgage banking revenues declined.
Operating expenses rose 18.7 percent from a year ago, but fell less than 1 percent from the fourth quarter, to $237.7 million, as the bank tightened the reins.
email: jepstein@buffnews.com