'Mad Money' Spotlight: First Niagara

First Niagara Financial(FNFG Quote) is fast becoming a regular on "Mad Money."

Last week, Jim Cramer highlighted the company in his segment on local banks. Last night, a caller again asked his take on the stock during the Lightning Round. The caller sounded skittish, wondering about the future following First Niagara's recent slide.

Cramer's answer was simple: There are a lot of failed banks coming on the horizon and First Niagara, with its solid capitalization, has great potential to scavenge and buy some of the troubled flock. "That's why I like FNFG. It reminds me very much of some of the banks, like Fleet, that I invested in, in the late '80s," he said last night.

Cramer said previously that he thinks First Niagara can double or triple in size this year. In April, the bank announced plans to buy 57 National City Bank branches in Pennsylvania, adding $4.2 billion in deposits and $839 million in loans after the close in September. Last October, PNC(PNC Quote) bought National City for $5.4 billion.

Still, it looks as if early morning investors weren't feeling as bullish. The stock was down 21 cents, or nearly 2%, in early morning trading. Shares closed in negative territory for the past week, but rallied yesterday afternoon. First Niagara shares opened at $11.63 Tuesday and ended the day at $12.17.