CORRECTION: An earlier version misstated the bank’s year-ago results.
New York’s First Niagara Financial Group Inc. fell into the red in the third quarter, as charges tied to goodwill and an unspecified process issue tied to depositors’ accounts.
The regional lender with operations in Connecticut also plans on closing a number of branch and drive-up locations throughout its four-state network, including nine in this state.
For three months ended Sept. 30, the Buffalo, N.Y., parent of First Niagara Bank lost a net $664.8 million, or $1.90 a diluted share, vs. a net gain of $71.6 million, or 20 cents a share, the same quarter a year ago.
The bank said the latest quarter results reflected a non-cash goodwill impairment charge of $800 million, as well as a pretax $45 million reserve to address the process issue related to certain customer deposit accounts. It didn’t specify the issue.
First Niagara said it will shut and consolidate 17 branches in January as it continues to invest in mobile- and online-banking technology.
The Connecticut closings include: 35 Talcott Road in Vernon; a branch at 214 Spencer St., and a drive-up site at 923 Main St., both in Manchester; 6 Fountain St. in New Haven; 108 Danbury Road, Ridgefield; 2500 Black Rock Turnpike, Fairfield; 155 Main St., Monroe; 1117 High Ridge Road, Stamford; and 30 Danbury Road, Wilton.
Afterwards, the bank said it will have more than 390 branches across its footprint.