EXHIBIT 99.1

First Niagara Profit Up on Organic Growth and Successful Entry Into New England in the Second Quarter of 2011

Second Quarter 2011 Highlights:

• NewAlliance conversion completed with positive customer momentum
• Operating EPS of $0.25 up 14% over the prior-year quarter
• Operating earnings up 43% and 59% over sequential and prior-year quarters
• Merger and restructuring expenses of $0.20 resulted in GAAP EPS of $0.05
• Double-digit organic growth in commercial lending continues, with three year CAGR of 20%
• Credit quality remains exceptional

BUFFALO, N.Y., July 21, 2011 (GLOBE NEWSWIRE) -- Continued growth across all of First Niagara Financial Group, Inc.'s (Nasdaq:FNFG) established regions, combined with entry into New England through its April NewAlliance Bancshares merger, drove higher revenue and operating earnings in the second quarter of 2011. The company again delivered a strong performance with the benefit of superior growth and asset quality trends.

"While our New England team successfully completed the NewAlliance conversion, seamlessly converting 350,000 customer accounts in Connecticut and Massachusetts, our continuing focus on our customers and all of the markets we serve again resulted in very strong loan and deposit growth," President and Chief Executive Officer John R. Koelmel said. "Even as we expect economic and regulatory headwinds to continue to buffet the industry at large, we are confident in continuing to deliver strong results by executing effectively and with discipline."

First Niagara posted non-GAAP operating earnings of $71.2 million, or $0.25 per diluted share, in the second quarter of 2011, compared to $49.8 million, or $0.24, in the linked quarter, and $44.9 million or $0.22 in the second quarter of 2010.

Total revenue of $291.3 million increased $66.4 million, or 29.5%, over the first quarter of 2011, including $62.6 million related to the NewAlliance acquisition. That performance included 16.7% annualized organic growth in commercial loans and 22.0% annualized growth in core deposits, excluding average acquired NewAlliance balances.

On a GAAP basis, second quarter 2011 net income was $13.6 million, or $0.05 per diluted share, compared to $44.9 million or $0.22 in the linked quarter and $20.0 million or $0.10 in the second quarter of 2010. GAAP net income and EPS, particularly during the second quarters of 2011 and 2010, reflect significant acquisition, integration and restructuring expenses.

All amounts in millions except earnings per diluted share. The Non-GAAP/Operating Results table above summarized the company's operating results excluding certain non-operating items.  
(a)   Amounts are shown net of tax and represent non-recurring expenses related to acquisition, integration and restructuring.

"Our ability to grow commercial loans organically at double-digit rates, and at 20 percent compound annual growth over the last three years, demonstrates the strength of our franchise," Chief Financial Officer Gregory W. Norwood said. "This trend underscores that we are well positioned, even in these uncertain times, to consistently grow the number of businesses and households First Niagara serves. We will continue to manage our business and balance sheet to make ample credit available in the communities we serve, manage credit costs at historically low levels and maintain a strong capital position, thus creating value for our customers and shareholders."

Successful NewAlliance Conversion

First Niagara successfully completed its NewAlliance acquisition on April 15, fully converting and integrating systems and operations in New England during the second quarter. The company's unique ability to simultaneously close and convert its acquisitions allows for total focus on serving existing and new customers' banking needs from day one. As of June 30, after converting about 350,000 customer accounts, overall deposit retention was 96% and core deposit retention was 97%, both exceeding the company's expectations. 

In connection with its New England entry in the second quarter, the company's insurance subsidiary, First Niagara Risk Management, acquired Pierson & Smith, a Norwalk, Connecticut insurance brokerage, consulting and third party administration firm. First Niagara Risk Management is a top-50 U.S. insurance broker, and the company has consistently sought top-performing independent firms to complement its entry into new markets. Pierson & Smith is First Niagara's 19th insurance acquisition, and it follows three agency deals in Pennsylvania in 2010 after the bank began operations there.

Organic Loan Growth Remains Very Strong

First Niagara's exceptional lending growth is a direct result of ongoing investments to add capacity and product depth to its relationship banking model. Average total loans and leases in the second quarter of 2011, excluding those acquired in the NewAlliance transaction, grew by $248.4 million, or 9.4%, annualized, compared to the linked quarter. 

Second quarter 2011 average commercial lending balance growth remained robust, increasing $292.6 million, or 16.7%, annualized, compared to the linked quarter, excluding loans acquired in the NewAlliance transaction.

Home equity and residential loan growth in the second quarter of 2011, excluding those acquired in the NewAlliance transaction, was consistent with soft consumer demand, though quarter-end balances reflect an increase in activity late in the period. Excluding acquired loans, average home equity balances in the second quarter increased $2.5 million, or 0.7% annualized, compared to the first quarter of 2011, and average residential mortgages declined $35.5 million, or 8.2%, annualized. 

Industry Leading Credit Quality Continues

First Niagara's asset quality ratios continued to outperform industry averages and remained consistent with the company's recent performance.  Second quarter 2011 net charge-offs were $7.5 million, representing 0.20% of First Niagara's average loans annualized, or 0.38% excluding all loans acquired at fair value. This compares to $8.1 million in the linked quarter or 0.31% of average loans annualized, or 0.41% excluding all loans acquired at fair value. 

First Niagara's second quarter 2011 provision for credit losses was $17.3 million.  As in recent quarters, the provision exceeded net charge-offs as the company increased its level of allowance consistent with the growth and changing mix of its loan portfolio.

Second quarter 2011 nonperforming loans were $82.5 million, representing 0.51% of total loans, or 0.93% excluding loans acquired at fair value.  Nonperforming loans represented 0.75% of total loans in the first quarter of 2011, or 0.98% excluding all loans acquired at fair value.

Core Deposit Growth Continues

Average core deposits for the second quarter of 2011 were $13.5 billion, increasing $3.7 billion from the first quarter of 2011, reflecting the closing of the NewAlliance acquisition.  Average core deposits in the second quarter of 2011, excluding those acquired in the NewAlliance acquisition, increased $539 million or 22.0% annualized over the linked quarter.  Average core deposits increased to 75.7% of total deposits in the second quarter of 2011, compared to 75.1% in the linked quarter.

Average total deposits in the second quarter reflected growth in money market deposits, partially offset by lower business demand balances and deliberate reductions in higher-cost CD balances of approximately $169 million, excluding those acquired in the NewAlliance transaction, as the company remained focused on more profitable customer relationships.

Net Interest Income Up Significantly

As expected given the NewAlliance acquisition, net interest margin decreased to 3.65% in the second quarter of 2011.  Second quarter net interest income grew by $57.6 million to $230.4 million, compared to the linked first quarter, reflective of the addition of $899 million in average net interest-earning assets primarily associated with the NewAlliance acquisition.  

Noninterest Income and Expense Reflect NewAlliance Transaction

Second quarter noninterest income of $60.9 million, was up $8.8 million compared to the first quarter of 2011. Excluding NewAlliance, second quarter 2011 noninterest income was down $0.3 million from the linked quarter, primarily due to the exceptional performance of First Niagara's Capital Markets business in the first quarter of 2011.  Entry into New England will offer a substantive opportunity to provide financial services products to an expanded customer base.  

Operating (non-GAAP) noninterest expense for the second quarter was $166.7 million, reflecting the NewAlliance acquisition. Excluding NewAlliance, noninterest expense was relatively flat.

Reported (GAAP) noninterest expense for the current quarter totaled $255.1 million. It included $88.5 million in non-operating expenses from the NewAlliance acquisition, as well as previously announced restructuring and repositioning initiatives to redeploy current resources to drive improved operating leverage, including branch closures and consolidations, leveraging the company's scale in back-office services and making more efficient use of facilities as it continues to recruit talent and build its workforce to support First Niagara's expansion.

Capital Management Initiatives

During the second quarter of 2011, the company repurchased 8.7 million shares of its common stock at a total cost of approximately $121 million. Current buyback authorization allows for the repurchase of an additional 12.3 million shares.

At June 30, 2011 the company's estimated consolidated Total Risk Based capital and Tier 1 Common Risk Based capital ratios were 12.65% and 11.36%, respectively. First Niagara remains well above current regulatory guidelines for well capitalized institutions. 

About First Niagara

First Niagara Financial Group, Inc., through its wholly owned subsidiary First Niagara Bank, N.A., has $31 billion in assets, $19 billion in deposits, 346 branches and approximately 5,000 employees, as of June 30, 2011.  First Niagara is a community-oriented bank providing financial services to individuals, families and businesses across Upstate New York, Pennsylvania, Connecticut and Massachusetts.  For more information, visit www.fnfg.com. 

Investor Call

A conference call will be held at 11 a.m. Eastern Time on Thursday, July 21, 2011 to discuss the company's financial results and business strategy. Those wishing to participate in the call may dial toll-free 1-877-709-8150. A replay of the call will be available until August 4, 2011 by dialing 1-877-660-6853, Account # 240, Conference ID # 374802. 

Non-GAAP Measures - 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. 

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:
         Michael W. Harrington
         Treasurer and Chief Investment Officer
         (716) 625-7701
         michael.harrington@fnfg.com

         News Media:
         Jeffrey A. Schoenborn
         Public Relations and Corporate Communications
         (716) 819-5921
         Email_PR@fnfg.com