Profit falls at First Niagara

First Niagara Financial Group posted a 7 percent drop in first quarter profit, it reported Friday.

The Buffalo-based bank with 59 branches in the Pittsburgh area had net income of $40.8 million, or 11 cents per share, for the period that ended March 31, compared to $43.8 million, or 12 cents per share, in the same quarter a year ago. The decline was driven by a 4 percent decline in noninterest income, which fell to $79 million from $82.2 million a year ago.

Also, the bank set aside an additional $10 million to cover potential loan losses, which cut into earnings. Noninterest expense was $255.3 million, down 2 percent from $261 million a year ago.