Greater Buffalo Savings Bank, First Niagara to merge

First Niagara Financial Group Inc., the holding company for First Niagara Bank, and Great Lakes Bancorp, the holding company for Greater Buffalo Savings Bank, have announced a merger under which Great Lakes will merge into First Niagara in a transaction valued at approximately $153 million.

Great Lakes has $892 million in assets and operates 12 Greater Buffalo Savings Bank branches in Erie County, two in Chautauqua County and two in Niagara County.

The transaction will significantly increase First Niagara's deposit market share in the Buffalo-Niagara region, the largest deposit market in upstate New York, to fourth largest among 22 FDIC-insured institutions.

John R. Koelmel, president and chief executive officer of First Niagara, said the Great Lakes acquisition strengthens First Niagara's market position in the Buffalo-Niagara region while immediately adding to earnings and tangible book value per share.

"Consistent with our focus on our best and most profitable growth opportunities, we are expanding our presence in Buffalo and Erie County, a major strategic priority for us, in an effective and efficient way," he said.

Andrew W. Dorn, Jr., president and chief executive officer of Great Lakes Bancorp, said, "This transaction with First Niagara stays true to our vision of being a community bank based in Western New York while also providing our consumer and business customers with a broader array of products and services to best serve their financial needs.

"We are both maximizing shareholder value and making sure that our customers will continue to receive the same customer-focused banking services they are used to," he added.