Staff Reports
The First Niagara Financial Group is in the process of applying to the Federal Reserve Board to become a bank holding company.
First Niagara said Friday that becoming a bank holding company would enhance the company’s ability to continue expanding through acquisitions. Currently classified as a thrift holding company, First Niagara said it would have more flexibility to purchase and expand as a bank holding company.
The financial group is the parent company of First Niagara Bank and is currently in the process of purchasing Harleysville National Bank of Philadelphia. Still in need of approval from regulatory and Harleysville shareholders for the purchase, First Niagara said it withdrew its application for approval from the Office of Thrift Supervision. Once the conversion to a bank holding company is complete, First Niagara will need to apply for purchase approval with the Federal Reserve Board, which would be First Niagara’s new regulator.
The company said the Harleysville purchase is expected to close in the first quarter of 2010.
Converting to a bank holding company will have no impact on employees or customers, First Niagara said.
