First Niagara Financial Group reported third-quarter net income of $79.1 million, or 20 cents per share, up more than 35 percent from a year ago, when it incurred acquisition costs of more than $29 million.
The bank, which has a major branch network in Connecticut, attributed the higher profits to balance sheet growth and favorable adjustments in its collateralized mortgage obligations book.
Net interest income was up 3 percent to $277.5 million year over year, while noninterest income fell from $102.2 million to $91.4 million.
First Niagara’s balance of loans and leases grew 10.4 percent to $21.1 billion.
CFO Gregory Norwood said in a statement that an increase in mortgage interest rates hurt mortgage revenue, which drove a 4 percent decline in fee income.
First Niagara incurred more than $29 million in costs during the third quarter of 2012 related to an acquisition from HSBC Bank.
Correction: The original version of this article incorrectly stated First Niagara’s net interest income for the third quarter. It was up 3 percent over the year to $277.5 million.
