Charges related to collateralized mortgage obligations and job cuts helped push profit lower at First Niagara Financial Group, Inc. in the fourth quarter.

Net income available to common shareholders at Buffalo–based First Niagara (NASDAQ: FNFG) totaled $53.5 million, or 15 cents a share, for the period. That’s down from $58.5 million, or 19 cents a share, in the fourth quarter of 2011.

For the full year in 2012, net income available to common shareholders totaled $140.7 million, or 40 cents per share. That’s down from $173.9 million, or 64 cents per share, in 2011.

First Niagara Bank has 430 branches, $37 billion in assets, and 6,000 employees in upstate New York, Pennsylvania, Connecticut, and Massachusetts.

During the quarter, the banking company took a $16 million charge related to its portfolio of collateralized mortgage obligations. The move reflects higher levels of mortgage prepayments than expected and projections of elevated levels for the foreseeable future, according to First Niagara.

The company also recorded $3.7 million in restructuring charges. First Niagara cut 180 positions across its four-state footprint late last year. The cuts included five positions in Central New York.

 First Niagara President and CEO John Koelmel said managing expenses will be a priority for the bank throughout 2013.

“We must spend less,” he said during a Jan. 23 conference call on First Niagara’s fourth-quarter results.

The bank will continue to look for ways to run more efficiently, he added.

Personnel costs, vendor expenses, and other costs will all get continued close attention, First Niagara CFO Gregory Norwood said during the conference call. He said the bank wasn’t announcing any more specific cost-cutting moves, but would continue to focus on expenses in the months ahead.

First Niagara Bank is number four in the Syracuse metro area deposit market with 21 branches, more than $808 million in deposits, and a deposit market share of more than 7.5 percent, according to the latest statistics from the Federal Deposit Insurance Corp. First Niagara is also number four in the Utica–Rome market with nine branches, $405.9 million in deposits, and a market share of about 11 percent.

The bank is number two in the Binghamton market with 10 branches, $342.5 million in deposits, and a market share of 12.8 percent.

First Niagara had total loans of $19.7 billion at the end of 2012, up from about $16.5 billion at the end of 2011. Deposits totaled $27.7 billion, up from $19.4 billion.

Net interest income in the fourth quarter was $252.3 million, up from $242.5 million a year earlier. Noninterest income for the period totaled $91.8 million, up from $63.7 million in the fourth quarter of 2011.

Noninterest expenses totaled $238.8 million in the fourth quarter, up from $202.2 million a year earlier. Koelmel said First Niagara’s goal is to reduce that total to about $225 million per quarter.

Net charge-offs totaled $8.9 million for the period, up from $5.8 million a year earlier. First Niagara’s loan loss provision in the fourth quarter was $21.5 million, up from $13.2 million a year earlier.

Nonperforming loans totaled $172.7 million at the end of the year, up from $89.8 million at the end of 2011.

Contact Tampone at ktampone@cnybj.com

Net income at M&T Bank Corp. (NYSE: MTB) rose to $296 million in the fourth quarter from $148 million a year earlier.

Earnings per share for the period totaled $2.16, up from $1.04 in the fourth quarter of 2011. Although there were no unusual items in M&T’s 2012 fourth quarter, the year-earlier period included several one-time items that pushed income down by $33 million, or 26 cents per share, according to the bank.

For the full year in 2012, Buffalo–based M&T earned $1.03 billion, or $7.54 per share, up from $859 million, or $6.35 per share, in 2011.

M&T Executive Vice President and CFO Rene Jones noted several major accomplishments from throughout 2012 during a Jan. 16 conference call on the banking company’s latest results.

They included M&T’s successful exit from the U.S. Treasury Department’s Troubled Asset Relief Program (TARP) program. The Treasury sold its preferred stock in M&T to the public and no longer holds any M&T shares.

M&T in 2011 repaid more than $700 million in TARP funds, some acquired through acquisition. Those repayments had left the Treasury with M&T shares worth more than $381 million.

The bank was also able to capitalize on upheaval caused by HSBC’s exit from the upstate New York retail market, Jones said. HSBC sold its branch network in the region to First Niagara Financial Group in May.

M&T’s deposits at the end of the year totaled $65.6 billion, up 10 percent from a year earlier.

And during the third quarter, M&T announced plans to acquire Paramus, N.J.–based Hudson City Bancorp, Inc. (NASDAQ: HCBK). The $3.7 billion acquisition will bring M&T $25 billion in deposits and $28 billion in loans.

Most of Hudson City’s 135 branches are in New Jersey, where M&T said it will have the fourth largest deposit share following the acquisition’s closing.  Hudson City has other branches in downstate New York and Connecticut.

For the fourth quarter at M&T, net interest income totaled $674 million, up from $624.6 million a year earlier. Noninterest income for the period was $453 million, up from $398 million a year earlier.

Excluding some one-time items, noninterest income was $468 million in the fourth quarter, up from $368 million in the fourth quarter of 2011. The increase was mainly the result of higher mortgage banking revenues, according to M&T.

Noninterest expense for the fourth quarter was $626 million, compared with $740 million a year earlier.

Loans at the end of the year totaled $66.6 billion, up from $60.1 billion at the end of 2011.

Jones noted that M&T’s credit quality remains strong

The provision for loan losses during the quarter was $49 million, down from $74 million a year earlier. Net charge-offs totaled $44 million, down from $74 million a year earlier.

Nonaccruing loans totaled $1.01 billion at the end of the period, down from $1.1 billion a year earlier.

M&T has more than 700 branch offices in Delaware, Maryland, New York, Pennsylvania, Virginia, West Virginia, and Washington, D.C. The bank has total assets of $83 billion.

M&T is the leading bank in the Syracuse metro area deposit market with 30 branches, more than $2.5 billion in deposits, and a market share of 23.4 percent, according to the latest statistics from the Federal Deposit Insurance Corp. The bank is second in the Utica–Rome area with 12 branches, $627.5 million in deposits, and a market share of about 17 percent.

M&T also leads the Binghamton–area market with 16 branches, more than $1.3 billion in deposits, and a market share of more than 50 percent.

Contact Tampone at ktampone@cnybj.com

DeWITT — Acquisition costs and a litigation settlement helped push profit down at Community Bank System, Inc. (NYSE: CBU) in the fourth quarter.

The DeWitt–based banking company earned $18.8 million, or 47 cents per share, in the quarter, down from $19 million, or 51 cents, in the fourth quarter of 2011. The fourth quarter included $500,000 in acquisition costs and a $2.5 million charge related to litigation settlement, which the company said pushed earnings down 5 cents per share.

The settlement involved a class-action lawsuit over the processing of retail debit-card transactions and its effect on overdraft fees. More than 100 other financial institutions around the country have been hit with similar lawsuits over the past three years, according to Community Bank.

The banking company said it had considerable defenses against the claims, but decided to settle to avoid the cost and staff time required for litigation.

DeWitt–based Community Bank System has $7.5 billion in assets and more than 180 branches in upstate New York and northeastern Pennsylvania. The banking company, parent of Community Bank N.A., also operates subsidiaries in employee benefits, insurance, investment management and advising, and wealth management.

For the full year in 2012, Community Bank System earned $77.1 million in 2012, an increase of 5.4 percent from 2011.

Mark Tryniski, company president and CEO, noted that Community Bank’s main challenge in 2012 was to grow its balance sheet, keep expenses low, and increase noninterest income. Given the continuation of low interest rates for the foreseeable future, the challenge remains the same for 2013.

“We grind it out,” he said during a Jan. 23 conference call to discuss Community Bank’s latest results.

Loans at the end of 2012 totaled $3.87 billion, up from $3.47 billion a year earlier. The increase includes growth in the bank’s existing business and the presence of loans picked up through recent acquisitions.

The bank saw increases in all of its loan portfolios in 2012, Executive Vice President and CFO Scott Kingsley said during the conference call. Community Bank saw record levels of mortgage and auto lending last year, he added.

Tryniski said the bank’s auto-lending business could be on track for another year of double-digit growth in 2013 and the bank is expecting another year of solid loan growth overall.

Net interest income for the fourth quarter was about $60 million, up from $55.1 million a year earlier. Noninterest income rose $3.8 million to $26.2 million and included double-digit increases in revenue from Community Bank’s employee-benefits and wealth-management businesses and in deposit service fees.

Deposits at the end of year totaled $5.6 billion, up from about $4.8 billion at the end of 2011.

Operating expenses for the fourth quarter, excluding the acquisition expenses and litigation settlement charge, totaled $53.9 million, up $6.2 million from a year earlier. The jump is the result of new operating expenses from HSBC and First Niagara Bank branches Community Bank acquired last year and an acquisition in its employee benefits business.

Net charge-offs for the period totaled $2.6 million, up from $1.8 million a year earlier. Nonperforming loans at the end of the quarter totaled $29.1 million, down from $31.4 million a year earlier.

Community Bank’s provision for loan losses in the fourth quarter was $2.7 million, up $1.1 million from the fourth quarter of 2011.

Contact Tampone at ktampone@cnybj.com

GEDDES — Growing the customer base in the Manlius area is one of the top priorities for the new president at Geddes Federal Savings and Loan Association.

Brian DuMond took over leadership at Geddes Federal effective at the start of 2013. He succeeds William Hemmerlein, who retired at the end of 2012. DuMond joined Geddes Federal in November.

Manlius and the surrounding area provide fertile ground for growth at Geddes Federal, DuMond says. There are large regional banks in the market and credit unions, he notes, but a lack of community banks.

“Our niche isn’t being served in that market,” he says. “I see tremendous opportunity out there.”

Geddes Federal opened a branch in Manlius, its second in its 60-year history, in 2011. The savings and loan is headquartered at 208 W. Genesee St. in Geddes, but also has a number of customers on the east side of the county and even into Madison County.

The combination of an existing customer base and room for more growth made Manlius the perfect fit for a new office, DuMond says.

At the same time, he doesn’t expect a rash of expansion for Geddes Federal. He says one of his other top priorities is to ensure the savings and loan’s existing customer base that things will continue on as they always have.

“We’re going to be what we have always been,” DuMond says.

The savings and loan prides itself on a family atmosphere and the staff knows many customers on sight, he notes. Thirteen of Geddes Federal’s 40 employees have worked there for more than 20 years.

DuMond was previously employed by the accounting firm Dermody, Burke & Brown CPAs, LLC of Syracuse, where he was a partner. He spent 26 years at the firm and specialized in working with financial institutions, governments, and nonprofits and was involved with the firm’s fraud, forensic, and audit work, according to Geddes Federal.

In fact, Geddes Federal was one of the very first clients DuMond worked with as an accountant. He eventually rose through the ranks at Dermody to become the partner in charge of the Geddes Federal account.

When he learned the top job there was open, he says he thought it was a perfect fit. Dermody and Geddes Federal have similar cultures, DuMond notes.

As for the future, he says the bank could look to move into mobile banking at some point in the future.

“We’re looking at it, but we’re not there yet,” he says. “It’s certainly one of the things I think is exciting.”

And while Geddes Federal has no current plans to open more branches, DuMond says that could change if the right opportunity comes along.

“The Geddes model is working so well right now that adding a bunch of branches right now doesn’t seem to make sense,” he says. “We’re open to it if the right opportunity presents itself.”

Geddes Federal has more than $500 million in assets, $416 million in deposits, and $470 million in loans. DuMond says 2012 was a strong year for lending at Geddes Federal and things have picked right up where they left off this year.

Its customers are mainly consumers. It does have some commercial relationships and checking accounts, but most clients are families.

Contact Tampone at ktampone@cnybj.com

Net income for common shareholders from continuing operations at KeyCorp (NYSE: KEY) totaled $193 million, or 21 cents a share, in the fourth quarter.

That’s down from $201 million, or 21 cents a share, in the fourth quarter of 2011. The Cleveland, Ohio–based banking company took a $16 million charge during the quarter related to its latest cost-cutting effort.

For the full year in 2012, net income from continuing operations attributable to common shareholders was $827 million, or 88 cents a share, down from $857 million, or 92 cents a share, in 2011.

Last year was a strong one for the bank, but it wasn’t enough, KeyCorp Chairwoman and CEO Beth Mooney said during a Jan. 24 conference call to discuss Key’s latest results.

“We are focused on sustaining our positive momentum and continuing to drive our performance in 2013 and beyond,” she said. “I am confident that our strategies are working and that we are on the right path forward.”

Key’s stock price rose 9.5 percent in 2012, compared to the approximately 16 percent increase in the Dow Jones U.S. Select Regional Banks Index. But year to date through Jan. 28, Key’s shares had already risen 9.3 percent, compared to the 6 percent gain for the index.

KeyBank has more than 1,000 branches in 14 states and assets of more than $89 billion.

Key is the number two bank in the Syracuse–metro area deposit market with 27 branches, more than $1.8 billion in deposits, and a market share of 16.8 percent, according to the latest statistics from the Federal Deposit Insurance Corp. The bank has two offices, more than $58 million in deposits, and a market share of 1.58 percent in the Utica–Rome area.

Loan growth was a highlight for KeyBank in 2012, with commercial and industrial lending leading the way, Senior Executive Vice President and CFO Jeffrey Weeden said during the conference call. Commercial and industrial loans rose 21 percent in 2012.

The bank has had success expanding lending with new and existing clients in some focused industry segments, Weeden said. Key expects average loan balances to increase in the mid- to upper single digits this year.

Commercial lending will likely drive the increase again as the bank focuses on sectors where it can deliver a full range of products, services, and advice to clients, Weeden said.

Consumer loans also rose in 2012, aided by a credit card portfolio Key acquired during the third quarter, he added. Overall, average total loan balances increased 6.6 percent to more than $51.8 billion in 2012.

Cost cutting will be a continuing focus for Key in 2013, Mooney said. The bank began a broad initiative to reduce expenses last year.

Key closed 19 underperforming branches in 2012 and is on track to shutter another 40 to 50 this year, Mooney say. Locally, Key closed a branch in Syracuse (and shuttered one in Dannemora in Clinton County), but also opened a new office in Manlius.

Key is aiming to save $150 million to $200 million in annual expenses by the end of this year. The bank’s moves in 2012 trimmed $60 million in annual costs, Mooney said.

Contact Tampone at ktampone@cnybj.com