Northwest Bancshares, which recently expanded its presence in the Buffalo Niagara region, reported a 10 percent increase in its third-quarter profits. But its acquisition of 18 Buffalo-area First Niagara branches didn't influence the numbers much.
The parent company of Northwest Bank didn't complete its deal for the First Niagara branches until Sept. 9. The quarter ended Sept. 30. For that reason, Northwest President and CEO William J. Wagner said the acquisition had "limited impact on earnings. However, we expect the full impact from this transaction to be realized in the fourth quarter of 2016."
During the third quarter, Northwest recorded net income of $14.2 million, or 14 cents per diluted share, compared to $12.9 million, or 13 cents per diluted share, a year ago.
The Warren, Pa.-based company recorded $7.2 million in acquisition expenses related to buying the First Niagara branches, which were converted to Northwest locations. With its growing presence in the Buffalo Niagara market, Northwest plans to establish a regional headquarters here. The bank now ranks No. 4 in deposit market share in the region, according to Federal Deposit Insurance Corp. data.
The third-quarter results were also impacted by Northwest's acquisition of Ohio-based Lorain National Bank, a deal completed in August 2015.
Northwest's deal for the 18 First Niagara branches came just ahead of KeyBank closing some First Niagara branches and converting the rest to Key locations.