Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Keycorp Strikes Deal to Acquire Rival Bank

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Keycorp Strikes Deal to Acquire Rival Bank

Article excerpt

Cleveland-based KeyCorp announced Friday that it will acquire First Niagara Financial Group in a cash-and-stock transaction valued at about $4.1 billion.

First Niagara, headquartered in Buffalo, N.Y., is the fifth- ranked bank by market share in the Pittsburgh region, according to the Federal Deposit Insurance Corp. PNC Bank has the largest share of deposits in the Pittsburgh region.

KeyCorp's acquisition of First Niagara will create the 13th largest commercial bank headquartered in the U.S., serving 3 million clients throughout the Northeast, Mid-Atlantic, Midwest and Pacific Northwest.

With $39 billion in assets and $29 billion in deposits, First Niagara operates 394 banking offices in New York, Pennsylvania, Connecticut and Massachusetts. It entered the Western Pennsylvania market in 2009 with the purchase of 57 former National City Bank branches from PNC.

Following the KeyCorp acquisition, the combined assets of the two banks will amount to about $135 billion. The combined operation will have more than 1,300 branches in 15 states, $99.8 billion in deposits and $83.6 billion in loans.

KeyCorp's announcement predicted the deal would bring annual cost savings in excess of $400 million "from maximizing efficiencies of technology infrastructure, procurement savings across the combined organization, and optimizing overlapping branches. …

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