KeyCorp on Friday completed its deal for First Niagara Financial Group, formally wrapping up an acquisition in the works since last October.
“Key and First Niagara are a powerful combination, driven by a shared commitment to the clients and communities we serve,” said Beth Mooney, KeyCorp CEO and chairman, in a statement. “Our teams have worked hard over the past nine months to bring our two organizations together. As we begin to move forward, as one company, I am excited for the opportunities we have to accelerate our performance, drive growth and maximize long-term value for our clients, communities, employees, and shareholders.”
The closing was anticipated ever since the Federal Reserve gave the deal its blessing on July 12. In fact, it was slightly early: Key had been pointing toward Aug. 1 as the expected the date.
The combined Key now has more than 1,200 branches in 15 states. And Key picks up $29 billion in deposits and $40 billion in assets through the deal.
First Niagara customers will continue to use their First Niagara accounts and other banking services until an unspecified date in the fourth quarter, when those accounts are expected to switch over to KeyBank. For that step, Key is awaiting the green light from another federal regulator, the Office of the Comptroller of the Currency. Key said it will communicate directly with First Niagara customers about those conversion plans.