The Federal Reserve Board recently approved KeyCorp’s acquisition of First Niagara Financial Group Inc. Both are large institutions — KeyCorp has assets of $98.6 billion and First Niagara $40.1 billion. On closing KeyCorp would become the 26th largest depository in the United States.
The FRB noted that both companies are “considered to be well managed” and that the acquirer’s “risk-management program appears consistent with approval.” In approving the large deal, the FRB highlighted that both companies are “predominantly engaged in retail commercial banking activities” and the resulting institution would not be overly complex.
Large banks looking to expand may see this as a welcome development, especially considering the widely held belief that regulators have been lukewarm about any proposed combinations among the large institutions. F.N.B. Corp. and Yadkin Financial also announced merger plans on Thursday.