First Niagara Reports Significant Increase in 2009 Mortgage Lending

LOCKPORT, N.Y., June 10 /PRNewswire-FirstCall/ -- First Niagara (Nasdaq: FNFG)
has more than doubled the amount of residential mortgage lending and approved
applications thus far in 2009, compared to the same time period in 2008.

Through May 31, 2009, First Niagara's mortgage operations has originated $565
million in loans, compared to $264 million at the same point last year.

First Niagara senior vice president of residential lending Daniel Dintino said
that while the overall purchase volume in Upstate New York is down from 2008,
First Niagara has gained greater market share in 2009 with record levels of
purchase money mortgages.

"While lenders are experiencing significant delays in servicing with the
record volume, we have been able to provide a platform to take in more than
double the volume from the same time last year," Dintino said.

With the increased capacity, First Niagara successfully launched a campaign to
discount rates up to 1/4% on purchase money mortgages to its existing banking
customers as well as new customers of the Bank, allowing the bank to expand
its number of full relationship households.

In addition, First Niagara has been able to assist many applicants seeking
mortgages that have had difficulties benefiting in this low rate environment.
Dintino noted that the pendulum of credit standards might have swung too far
to the other extreme, leaving only the pristine borrowers with the opportunity
to take advantage of the lower rates.

"By providing unique bank mortgage products, including providing rate
discounts and credit accommodations for good banking customers who may not
have fit properly into the credit box drawn by the secondary mortgage market,
First Niagara was able to successfully attract, serve and fulfill the
residential mortgage needs of many more prospective homeowners," said Dintino.
"Our results show that there are customers looking for loans, and First
Niagara has money to lend them."

For more information on First Niagara's 2009 mortgage results, please contact
Senior Vice President of Residential Lending, Daniel Dintino at (716)
625-7643.

About First Niagara Financial Group

First Niagara Financial Group, Inc., through its wholly owned subsidiary First
Niagara Bank, has assets of $9.6 billion and deposits of $6.2 billion. First
Niagara Bank is a full-service, community-focused bank that provides financial
services to individuals, families and businesses through 113 branches and four
Regional Market Centers across Upstate New York. In April 2009, the company
announced plans to add another 57 branches in Pittsburgh, Warren and Erie,
Pa., additional deposits of $4.2 billion and additional loans of $839 million
in an acquisition that is expected to close in September 2009. For more
information, visit www.fnfg.com.

Forward-Looking Statements - This press release contains forward-looking
statements with respect to the financial condition and results of operations
of Buyer Company 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.

SOURCE First Niagara Financial Group, Inc.

Oliver Hays, Communications Coordinator, +1-716-625-7500, ext 2646