First Niagara Makes Adjustment to Accelerate Collateralized Mortgage Obligation Premium Amortization

First Niagara Makes Adjustment to Accelerate Collateralized Mortgage
Obligation Premium Amortization

Otherwise Expects to Meet Consensus Operating Earnings Expectations

BUFFALO, N.Y., Jan. 16, 2013 (GLOBE NEWSWIRE) -- First Niagara Financial
Group, Inc. (Nasdaq:FNFG) announced today that it will recognize a pre-tax
adjustment of $16 million, or $0.03 per share, in 2012 to accelerate premium
amortization on its Collateralized Mortgage Obligations (CMO) portfolio. The
adjustment reduces the amount of unamortized premium on the CMO portfolio to
reflect the impacts of the substantial level of prepayments received in recent
months and the expected elevated levels of cash flows to be received for the
foreseeable future.

Except for this adjustment, First Niagara expects to report non-GAAP operating
earnings per share consistent with current consensus analyst expectations.
Excluding any impacts of this adjustment, the net interest margin in the
fourth quarter of 2012 is expected to be 3.42% (non-GAAP*).

Residential Mortgage Backed Securities Portfolio Summary

The table below summarizes key details pertaining to the company's residential
mortgage backed securities portfolio:

                                 CMO          MBS          Total RMBS
Cost basis at December 31, 2012   $4.8 billion $0.8 billion $5.7 billion
Remaining unamortized premium     $74 million  $22 million  $ 96 million
Unamortized premium as % of par   1.6%         2.7%         1.7%
Yield to maturity (excludes new   2.37%        2.95%        2.45%

*Non-GAAP net interest margin calculated to exclude accelerated premium
amortization recognized in the fourth quarter of 2012

Investor Call on January 23, 2013

The company will announce its fourth-quarter and full-year 2012 financial
results on Wednesday, January 23, 2013, followed by an investor call at 8:30
a.m. Eastern Time.Those wishing to participate in the call may dial toll-free
1-888-324-9650 with the passcode: FNFG.Presentation slides will be used
during the earnings conference call and is available under the investor
relations tab of the company's website at A replay of
the call will be available until February 6, 2013 by dialing 1-888-566-0438,
passcode: 15645.

About First Niagara

First Niagara, through its wholly owned subsidiary, First Niagara Bank, N.A.,
is a multi-state community-oriented bank with approximately 430 branches,
approximately $37 billion in assets, $28 billion in deposits, and
approximately 6,000 employees providing financial services to individuals,
families and businesses across Upstate New York, Pennsylvania, Connecticut and
Massachusetts. For more information, visit

Non-GAAP Measures - This news release contains financial information
determined by methods other than in accordance with accounting principles
generally accepted in the United States of America (GAAP).The Company
believes that non-GAAP financial measures provide a meaningful comparison of
the underlying operational performance of the company, and facilitate
investors' assessments of business and performance trends in comparison to
others in the financial services industry.In addition, the company believes
the exclusion of these non-operating items enables management to perform a
more effective evaluation and comparison of the company's results and to
assess performance in relation to the company's ongoing operations.These
disclosures should not be viewed as a substitute for financial measures
determined in accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other companies.Where
non-GAAP disclosures are used in this news release, the comparable GAAP
financial measure, as well as the reconciliation to the comparable GAAP
financial measure, can be found in this document.

Forward-Looking Statements - This press release contains forward-looking
statements with respect to the financial condition and results of operations
of First Niagara Financial Group, Inc. including, without limitations,
statements relating to the earnings outlook of the company.These
forward-looking statements involve certain risks and uncertainties.Factors
that may cause actual results to differ materially from those contemplated by
such forward-looking statements include, among others, the following
possibilities: (1) changes in the interest rate environment; (2) competitive
pressure among financial services companies; (3) general economic conditions
including an increase in non-performing loans that could result from an
economic downturn; (4) changes in legislation or regulatory requirements; (5)
difficulties in continuing to improve operating efficiencies; (6) difficulties
in the integration of acquired businesses; and (7) increased risk associated
with an increase in commercial real estate and business loans and
non-performing loans.

CONTACT: First Niagara Contacts
         Investors: Ram Shankar
         Senior Vice President, Investor Relations
         (716) 270-8623
         News Media: David Lanzillo
         Senior Vice President, Corporate Communications
         (716) 819-5780
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