By Eileen Buckley
Buffalo, NY – Buffalo-based First Niagara is getting bigger. First Niagara is buying a Connecticut bank. It's a $1.5 million merger between First Niagara and NewAlliance Bancshares.
This will position First Niagara as a top-25 U.S.. Bank with $29 billion in assets The boards of directors of both companies have unanimously approved the transaction.
The deal will be a cash-and-stock transaction. First Niagara president and chief executive officer John Koelmel said their strategy for creating shareholder value is to deliver profitable growth.
"First Niagara's strategy for creating shareholder value is to deliver profitable growth by playing offense' and entering new markets that complement our geographic footprint with companies that enhance our strong business model," said Koelmenl.
All 88 NewAlliance branches are expected to be converted and rebranded as First Niagara locations. Connecticut's New Haven, Fairfield, Hartford, Middlesex, Tolland and Windham counties are currently home to 75 NewAlliance locations, and Massachusetts' Hampden and Worcester counties have 13 branches. NewAlliance's workforce currently totals about 1,200 employees.
The transaction losing is anticipated early in the second quarter of 2011, subject to approvals from regulators, First Niagara and NewAlliance shareholders, and other customary conditions.