First Niagara, Former CEO Reach $5M Severance Deal: Report

First Niagara Financial (FNFG) in Buffalo, N.Y., has reportedly reached a severance agreement with John Koelmel, who was ousted as chief executive in March.

The $36 billion-asset company will pay Koelmel roughly $5 million, according to an online report by WGRZ, an NBC affiliate in Buffalo. The parties reached the agreement earlier this week, WGRZ learned.

First Niagara had already recorded a $6.3 million charge in the first quarter related to the departures of Koelmel and Oliver Sommer, the company’s former vice president of corporate development.

The company also disclosed last month that it was progressing with efforts to permanently replace Koelmel. For now, Gary Crosby, who had been chief administrative and operations officer, remains First Niagara’s interim president and CEO.

First Niagara told WGBZ that it would disclose more details in its next quarterly filing with the Securities and Exchange Commission. A lawyer for Koelmel declined to comment.