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First Niagara Financial Applies To Be Bank Holding Co



DOW JONES NEWSWIRES

Lockport, N.Y.-based First Niagara Financial Group Inc. (FNFG) has applied to the Federal Reserve Board to become a bank holding company.

First Niagara, currently a thrift holding company for First Niagara Bank, said status as a bank holding company would mean it could own more than just thrift institutions, allowing it to "continue expanding through acquisitions of both thrifts and commercial banks."

First Niagara in July said it planned to acquire Pennsylvania bank Harleysville National and its $5.2 billion in assets. First Niagara is now shifting its application for approval for that deal from the Office of Thrift Supervision to the Federal Reserve Board, which would oversee First Niagara if it becomes a bank holding company.

First Niagara said converting to bank-holding-company status wouldn't affect its employees.

Shares of First Niagara fell 2% to $13.03 in premarket trading.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@ dowjones.com


  (END) Dow Jones Newswires
  11-27-090838ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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