KeyCorp will sell 18 branches as part of an agreement with the Justice Department and the Federal Reserve Board to complete its purchase of First Niagara Financial Group.
Northwest Bancshares in Warren, Pa., will purchase the First Niagara branches in the Buffalo, N.Y., market in addition to $1.7 billion of deposits and $500 million of loans. The $98.4 billion-asset KeyCorp said Thursday that it will retain middle-market, private-banking, municipal and commercial real estate client relationships in this market.
KeyCorp
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Some are looking at buying banks or counting on recently announced acquisitions to diversify revenue streams. Others are investing in fee-based businesses and new technologies and all, of course, are trying to keep a lid on expenses.
April 21 - New York
Shareholders of KeyCorp in Cleveland and First Niagara Financial Group in Buffalo, N.Y., have approved Keys planned purchase of First Niagara.
March 23 -
Bankers need to let investors know in advance what types of deals they are willing to pursue, along with the financial parameters. Doing so is a critical step in managing shareholder expectations at a time when consolidation is heating up.
February 8
The branch sale is subject to the completion of the deal between KeyCorp and First Niagara. Beth Mooney, KeyCorp's chairman and chief executive, said in the press release that the deal was on track to close in the third quarter.
The $9 billion-asset Northwest has been operating in the Buffalo market for 15 years and has completed more than 37 bank deals, including 14 branch purchases, according to the press release.
