Exhibit 99.1

                  FIRST NIAGARA FINANCIAL GROUP, INC. ANNOUNCES
             COMPLETION OF CHARTER CONVERSIONS AND CONSOLIDATION OF
                              BANKING SUBSIDIARIES


LOCKPORT,  New York  --First  Niagara  Financial  Group,  Inc.  (NASDAQ:  FNFG),
announced that First Niagara Bank and First Niagara  Financial  Group,  MHC, its
mutual holding company parent,  have completed their  conversions  from New York
chartered  institutions to federally  chartered  institutions.  The Company also
announced  that Cayuga Bank and  Cortland  Savings  Bank,  formerly  operated as
wholly owned  subsidiaries,  have been merged into the Company's primary banking
subsidiary,  First Niagara  Bank.  First Niagara Bank will continue to provide a
full range of banking  services to the  customers  of Cayuga  Bank and  Cortland
Savings Bank, and will continue to operate all of their banking  centers under a
united brand--First Niagara.

"The rationale behind one brand is to increase market awareness of First Niagara
as a community-based financial services company with the scope and strength of a
larger  institution and the personal  service focus of a smaller  company," said
David J. Nasca,  Executive Vice  President of Consumer  Banking and CNY Regional
Executive.  "It will also  increase  the  efficiency  of our  company  and allow
customers to access our services across New York State.

In conjunction with the consolidation of its banking subsidiaries, the Company's
non-banking  subsidiaries are undergoing a name change to more clearly link them
to  First  Niagara.  The  Company's  investment  advisory  subsidiary,   Niagara
Investment  Advisors,  Inc., is being renamed First Niagara Investment Advisors,
Inc. The Company's insurance subsidiary,  Warren-Hoffman & Associates,  Inc., of
which  Newfane-based  Foote-Mandaville  Agency,  Inc.  is a  division,  is being
renamed First Niagara Risk Management, Inc.


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Conversion/Consolidation
Page 2


Meanwhile,  Allied Claim Services,  Inc.,  acquired by Warren-Hoffman in January
2001, will merge into First Niagara Risk Management,  Inc. in the fourth quarter
of  this  year.   Allied  is  an  insurance   adjusting  firm  and  third  party
administrator.  The Company's retail investment and insurance subsidiary,  whose
products are sold  through  financial  consultants  at First  Niagara's  banking
centers statewide, is changing its name to First Niagara Securities, Inc.

"As one  team  of  financial  services  professionals  our  customers  have  the
advantage  of  a  larger  distribution  network  plus  greater  convenience  and
consistency   from  a  company  that  is  dedicated   to   customers,   customer
relationships  and the  communities  we serve," said William E. Swan,  Chairman,
President and Chief Executive Officer of the Company.

"Our new federal  charters  will benefit our  stockholders,  depositors  and the
communities in which we operate, and will enhance the ability of the Company and
the Bank to expand operations," Swan said.

The  Company's  common stock will  continue to be traded on the NASDAQ  National
Market System under the symbol FNFG.

Based in the Buffalo, NY suburb of Lockport, First Niagara Financial Group, Inc.
is a $2.9 billion  financial  services  company.  On July 22, 2002,  the Company
announced  its  intentions  to conduct a second  step  conversion  offering  and
acquire Finger Lakes Bancorp,  Inc. The offering and acquisition are expected to
close in January 2003.

First  Niagara has a presence  in the  western  and central  regions of New York
State through 38 banking centers,  75 ATMs and two lending centers.  The company
specializes in banking,  investments and insurance.  For more information  about
First Niagara, visit our website at www.fnfg.com.

This press release does not  constitute a solicitation  of a proxy,  nor does it
seek the procurement, withholding or revocation of a proxy.