Earnings
First Niagara Buying 57 Branches From PNC
The Associated Press
04/07/09 - 09:21 AM EDT
LOCKPORT, N.Y. (AP) — First Niagara Financial Group is acquiring $4.2 billion in deposits and 57 branches from National City Bank, a unit of PNC Financial Services Group.
First Niagara will pay a deposit premium of 1.3 percent.
Pittsburgh-based PNC Financial was forced to sell the branches in western Pennsylvania as part of an agreement with regulators when it acquired National City last fall.
The acquisition will significantly bolster First Niagara's operations. The Lockport, N.Y.-based bank had $5.9 billion in deposits and $9.3 billion in assets as of Dec. 31. First Niagara projects the acquisition will increase earnings per share by 20 percent in 2010.
The deal is expected to close in September.