Mar 23, 2016 3 min read

Shareholders have approved the acquisition by KeyCorp of First Niagara Financial Group, both companies announced Wednesday.

The approvals came during special meetings held in Buffalo by First Niagara and in Cleveland by KeyCorp. The banks said more than 90 percent of shareholders voted for the merger.

“We are very pleased that First Niagara shareholders have overwhelmingly demonstrated their support for the merger with KeyCorp.,” said First Niagara chief executive officer Gary M. Crosby in a statement. “This is an important step in bringing our two companies together for the benefit of our customers, employees, shareholders and the communities we serve.

KeyCorp CEO Beth Mooney described the merger as “a powerful combination that will bring a new level of capabilities and expertise to our clients; new opportunities for our employees; and even greater investment in our communities.”

The two banks entered into a merger agreement Oct. 30.

First Niagara is a multi-state community-oriented bank with 390 branches, $40 billion in assets, $29 billion in deposits and 5,400 employees providing financial services to individuals, families and businesses across New York, Pennsylvania, Connecticut and Massachusetts.

While First Niagara is headquartered in Buffalo, it has a strong presence in Western Pennsylvania, with more than 50 branches, including six in Washington County.

It also has naming rights for First Niagara Pavilion in Hanover Township.

KeyCorp was organized more than 160 years ago and is headquartered in Cleveland. It is one of the nation’s largest bank-based financial services companies, Key had assets of about $95 billion as of Dec. 31. It provides deposit, lending, cash management and investment services to individuals and small- and mid-sized businesses in 12 states under the name KeyBank National Association. It also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBank Capital Markets trade name.

The merger has faced opposition from elected officials and community organizations that have voiced concerns about the impact on jobs to the availability of credit and banking services in low- and moderate-income communities.

The merger will still need regulatory approval from the Office of the Comptroller of the Currency, but could be finalized by the third quarter.