KeyCorp, First Niagara in Treasury program - Business First of Buffalo:

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's Capital Purchase program. Cleveland-based KeyCorp KEY) is the parenf of , the third-largest bank in the Buffalo First NiagaraFinancial group, parent of , is the fourth-largest bank in the KeyCorp will bolster its capital position by $2.5 the company said, which will significantly fortify its balance enhance lending capabilities and enable businesse investment. "With this move, we furthefr elevate our positionof strength, gain flexibilityu in managing our balance sheet, enhance our ability to lend to our relationship clients, and enable continued investments in our businesses," said Chiefg Executive Officer Henry Meyer III.
Firsgt Niagara (NASDAQ: FNFG), with $9 billiom in assets, will receive up to $186 million under the federalo government’s new capital purchase program. “First Niagara continues to be a leader inchallenging times,” President and CEO John Koelmel said in prepareds remarks. “We are supportive of the Treasury Department’s effortas and remain strongly committed to supporting the economyh in UpstateNew York.
” In exchange for the First Niagara will allow the Treasury to purchasw senior preferred shares of its stoco and warrants to buy First Niagara common stock equivalent to 15 percent of the senior preferred The federal program is “intended to infusew equity in healthy financial institution s that form the backbonre of the U.S. financial system,” the First Niagara statemeng said. “Subject to a review of program termswof conditions, First Niagara expects to leverage the proceeds to furthet accelerate its growth strategy as well as to opportunistically assesas acquisition prospects, the company’s statementt said.
Earlier this month, First Niagara successfullty completeda follow-on stock offering that raised more than $108 millionb in new capital it said would be used for growth purposes. It operateds 114 branches and four regional market centers Upstate between Niagara County and the AlbanyCapital District. Anothetr prominent Buffalo bank, , said it "continues to evaluate the benefits of the progra to a healthy banklike M&T.
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