First Niagara Buying 57 Branches From PNC

"This transaction enables us to strategically expand our franchise, leverage our strong financial position and enhance shareholder value," John Koelmel, First Niagara's president and chief executive, said in a statement.

First Niagara projects the acquisition will increase earnings per share by 20 percent in 2010. Analysts polled by Thomson Reuters, on average, forecast earnings of 73 cents per share for 2010.

First Niagara said it will retain about 500 employees western Pennsylvania, most of which work in the branches acquired. In addition, First Niagara plans to add 50 to 75 new jobs in and around Pittsburgh to support the new operations. First Niagara said it will add another 100 to 125 jobs in New York to support its new branch network.

The deal is expected to close in September.