First Niagara Delivers Record Quarter And Full Year Results

• Record earnings driven by expansion of top line revenue
• Strong organic loan growth across all businesses and markets
• Dividend increased again by 7%
• Franchise primed to continue superior growth

BUFFALO, N.Y., Jan. 27, 2011 (GLOBE NEWSWIRE) -- First Niagara Financial Group, Inc. (Nasdaq:FNFG) capped a very successful 2010 by delivering record results in the fourth quarter with operating (Non-GAAP) earnings of $49.7 million or $0.24 per diluted share. In addition, the Company increased its quarterly cash dividend by $.01 or 7% for the second consecutive quarter, to $0.16 per share.

"2010 was a year of remarkable accomplishment and transformation for First Niagara," President and Chief Executive Officer John R. Koelmel said. "We significantly enhanced our franchise – strategically, financially, and operationally – emerging as a regional force in the financial services industry. In executing our game plan of disciplined growth and expansion, we have added the framework for a valuable and competitive Northeast footprint. We ended the year on a high note with another record performance that further demonstrates the strength of what we've built both in our Upstate New York markets where we continue to increase market share and in our newer Pennsylvania markets where we are exceeding our original expectations for new business generation. Given that consistently strong performance combined with our very solid capital position, we are pleased to announce a dividend increase for the second consecutive quarter, which will further enhance shareholder returns."

Mr. Koelmel added, "As proud as we are of our achievements, our focus remains on the future. We are a growth company differentiated by our track record of strong performance, excellent positioning, and outstanding potential. We operate in markets that are among the most attractive in the country. We have made key investments in talent and infrastructure that provide us the operating platform to achieve our growth aspirations. While today's operating environment has a fair degree of uncertainty, we remain committed to high performance outcomes. Therefore, knowing that we can't rely solely on revenue growth in the near term, we are accelerating our plans to achieve greater productivity and efficiency by taking a hard look at our distribution system and other assets that are producing suboptimal returns. We also eagerly await the closing of the NewAlliance merger and bringing our winning business model to the customers and communities in their markets."