First Niagara Bank
| File:First Niagara Bank logo.png | |
| Company type | Public |
|---|---|
| Template:NASDAQ | |
| Industry | Banking, Finance and Insurance |
| Founded | Lockport, New York May 11, 1870 |
| Defunct | October 7, 2016 |
| Fate | Acquired by KeyBank |
| Successor | KeyBank |
| Headquarters | Larkin Terminal Warehouse 726 Exchange Street Buffalo, New York |
Number of locations | ~390 |
Area served | Mid-Atlantic, New England |
Key people | Gary M. Crosby (President and CEO) Joe Saffire (Executive Vice President) Greg Norwood (Chief Financial Officer) Mark Rendulic (Executive Vice President) |
| Products | Financial services |
| Total assets | $40.02 billion (2016) |
Number of employees | ~5,000 |
| Website | www |
First Niagara Bank operated as a regional bank insured by the Federal Deposit Insurance Corporation and was headquartered in Buffalo, New York. Its parent entity, First Niagara Financial Group, Inc., was ranked as the 44th largest banking institution in the United States with assets surpassing $37.1 billion as of mid-2013.
History
Established in 1870 under the name Farmers and Mechanics' Savings Bank, the institution changed its name to Lockport Savings Bank in 1967 before adopting the First Niagara brand in 2000. Originally focused on serving Niagara County, the bank expanded into Buffalo and Erie County throughout the 1990s, partially benefiting from the failure of local banks such as Goldome and Empire of America. The growth strategy prioritized acquiring customers over merely increasing assets. In 1998, First Niagara entered the insurance sector by purchasing Warren-Hoffman & Associates Inc., and that same year it expanded its branch network to 22 following the acquisition of Albion Bancorp.
Between 2002 and 2005, First Niagara pursued growth through a series of acquisitions including Cayuga Bank located in Auburn, Cortland Savings Bank in Cortland, Bank of Finger Lakes based in Geneva, Troy Savings Bank from Albany, and Hudson River Bank and Trust situated in Hudson.
In September 2007, First Niagara acquired Great Lakes Bancorp—the parent company of Greater Buffalo Savings Bank—for $153 million. This deal added nearly $900 million in assets and elevated First Niagara to become the fourth-largest bank within the Buffalo-Niagara area. Then in April 2009, it expanded further into Pennsylvania by purchasing 57 National City branches across Erie and Pittsburgh; these branches were rebranded later that year. To complement this regional growth, First Niagara secured naming rights for a concert venue in Pittsburgh.
The April 2010 acquisition of Harleysville National, a Pennsylvania-based bank, increased First Niagara’s total assets to $19.7 billion while growing its branch count to 254 with deposits totaling $13.7 billion. Subsequently, in August 2010, First Niagara announced its $1.5 billion purchase of NewAlliance Bank from Connecticut; this transaction was completed in April 2011 and expanded its footprint to over 340 branches along with more than 500 ATMs.
In August 2011, First Niagara obtained naming rights for Buffalo’s HSBC Arena, which was subsequently renamed the First Niagara Center.
On October 30, 2015, KeyCorp reached an agreement to acquire First Niagara. To comply with antitrust requirements before final integration, eighteen branches located in Erie and Niagara Counties were divested to Northwest Savings Bank.
National City
On April 7, 2009, First Niagara reached an agreement to purchase 57 National City branches located in Western Pennsylvania from PNC Financial Services. The acquisition was finalized on September 8, followed by a rebranding effort completed over Labor Day Weekend. PNC had acquired National City during the 2008 financial crisis with government bailout assistance but was mandated by the Department of Justice to divest 61 branches in the Pittsburgh and Erie regions due to antitrust regulations—PNC and National City were the two leading market holders in Western Pennsylvania. Despite this divestiture, PNC retained a commanding 46% market share within Pittsburgh.
The transaction with First Niagara was unforeseen, as PNC had also been in discussions with larger institutions such as JPMorgan Chase, Wells Fargo, Fifth Third Bank, KeyBank, Huntington Bancshares, and FNB Corporation. By acquiring these branches, First Niagara immediately secured the third-largest market position in Pittsburgh with an 8% share, surpassing well-established regional competitors like Dollar Bank and First Commonwealth Bank. The company ensured that all National City employees at these locations remained employed and set up a regional headquarters at 11 Stanwix Street in Downtown Pittsburgh.
Four branches situated in Crawford County were not included in the deal; these were sold separately to Emclaire Financial Group and Marquette Savings Bank. Furthermore, on August 4, 2009, First Niagara assumed control of ATMs at 95 Sheetz convenience stores throughout Western Pennsylvania from M&T Bank. These ATMs offered surcharge-free withdrawals for First Niagara customers initially but were later replaced by PNC machines across Sheetz’s network.
Harleysville National
On July 27, 2009, First Niagara announced an all-stock acquisition of Philadelphia-based Harleysville National Corporation valued at roughly $237 million, or $5.50 per share. This move marked First Niagara’s entry into the Philadelphia market. The deal added $5.6 billion in assets—including $3.6 billion in loans and $4.1 billion in deposits—spread across 83 branches in nine counties across Eastern Pennsylvania. Harleysville’s parent company also owned East Penn Bank, Millennium Wealth Management, and Cornerstone Companies. First Niagara retained all branches of Harleysville and East Penn as well as their expanding commercial banking and wealth management operations. At the time, Harleysville employed over 1,100 individuals. The acquisition was completed on April 9, 2010.
HSBC deal expands presence in northeastern U.S.
On July 31, 2011, First Niagara revealed plans to acquire nearly half of HSBC Holdings plc’s HSBC Bank USA branch network for $1 billion. This purchase included 195 branches primarily located in New York City suburbs and Connecticut, along with $15 billion in deposits, $2.8 billion in loans, and $4.3 billion in assets under management. The transaction nearly doubled First Niagara’s branch count to approximately 450 locations while increasing assets to $38 billion and deposits to $30 billion. Regulatory conditions required divesting certain branches; ultimately, 64 branches were sold off—37 transferred to KeyBank, 19 to Community Bank, and 8 to Five Star Bank.
On October 30, 2015, KeyCorp announced its agreement to acquire First Niagara Bank.
See also
External links
- Pages with broken file links
- American companies established in 1870
- Banks established in 1870
- Banks based in New York (state)
- Niagara County, New York
- 2016 mergers and acquisitions
- Defunct banks of the United States
- Banks disestablished in 2016
- American companies disestablished in 2016
- Defunct companies based in Buffalo, New York
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- Companies of the United States by year of establishment