BUFFALO NY – There’s more consolidation on the way among local banks.
First Niagara Financial Group Inc., the Buffalo-based firm that grew in western Montgomery County during 2010 by buying out the former Harleysville National Bank, itself became the subject of a take-over Friday (Oct. 30, 2015). It agreed to be purchased for $4.1 billion by KeyCorp, which operates from Ohio, the Wall Street Journal reported.
First Niagara has three branches in Pottstown, and one each in Limerick, Royersford, Collegeville, Gilbertsville, North Coventry, Boyertown, Douglassville and Red Hill.
The deal is expected to close by the third quarter of 2016, The Journal reported. With it Key Bank, the KeyCorp bank brand name, would grow by about 400 offices across New York, Pennsylvania, Connecticut and Massachusetts, and become the 13th-largest bank in the country, according to the Rochester (NY) Democrat and Chronicle newspaper.
It also interviewed banking experts who speculated KeyCorp would combine operations and close branches with overlapping coverage areas. KeyCorp told shareholders they will benefit from $400 million in savings by “optimizing” as a result of the merger.
Announcement of the First Niagara acquisition comes on the heels of other recent local banking deals.
Susquehanna Bank next week will change all its branding to that of BB&T Bank, following its purchase last year. It has four offices within 10 miles of Pottstown. And National Penn Bank, which in August (2015) announced it also was being bought by BB&T for $1.8 billion, will similarly swap brands by mid-2016. It has a branch in Sanatoga and nine other sites inside a 10-mile radius.
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