First Niagara Buying 57 Branches From PNC

STEPHEN BERNARD

NEW YORK (AP) — First Niagara Financial Group Inc., parent of First Niagara Bank, said Tuesday it will acquire $4.2 billion in deposits and 57 branches in western Pennsylvania from National City Bank, a unit of PNC Financial Services Group Inc.

First Niagara will pay a deposit premium of 1.3 percent.

The acquisition is Lockport, N.Y.-based First Niagara's first expansion beyond its footprint in upstate New York.

In addition to the branches and deposits, First Niagara will receive $3.2 billion in cash and $839 million of performing business and consumer loans as part of the deal.

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 because of its market share concentration in the region.

The acquisition will significantly bolster First Niagara's operations. First Niagara had $5.9 billion in deposits and $9.3 billion in assets as of Dec. 31.

First Niagara will add more than 400,000 customer accounts as part of the acquisition.