First Niagara Financial Group, Inc. (FNFG) Wednesday said it will recognize a pre-tax adjustment of $16 million, or $0.03 per share, in 2012 in order to accelerate premium amortization on its collateralized mortgage obligations, or 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.
Excluding this adjustment, First Niagara projects adjusted earnings consistent with current consensus analyst expectations.
Adjusted net-interest margin, excluding the adjustment, is expected to be 3.42 percent in the fourth quarter.
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