First Niagara Financial Group, a New York-based community-oriented bank, the thrift holding company for First Niagara Bank, has applied to the Federal Reserve Board to become a bank holding company.
First Niagara, currently a thrift holding company regulated by the Office of Thrift Supervision (OTS), is only permitted to own and hold thrift institutions. Bank holding company status will enhance First Niagara’s ability to expand through acquisitions of both thrifts and commercial banks.
It will also give the company flexibility in how it completes and executes transactions. Once the conversion process is complete, First Niagara Financial Group will operate under the oversight of the Federal Reserve Board.
The group said that converting to a bank holding company would have no impact on First Niagara employees’ day to day responsibilities or interactions with customers.
