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
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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.