CLEVELAND (AP) - KeyCorp will stretch its reach deeper into the Northeast with a $4.1 billion deal to buy First Niagara Financial Group and create the 13th largest commercial bank in the United States.

CLEVELAND (AP) KeyCorp will stretch its reach deeper into the Northeast with a $4.1 billion deal to buy First Niagara Financial Group and create the 13th largest commercial bank in the United States.

Cleveland-based KeyCorp says it will offer a portion of its stock and $2.30 in cash for each First Niagara share. The total comes to $11.40 per share based on the Thursday closing price of Key Corp's stock.

That represents a roughly 10 percent premium to First Niagara's $10.38 closing price on Thursday. Its shares are up almost 2 percent in premarket trading before the market opens.

Buffalo, New York-based First Niagara has nearly 400 locations in New York, Pennsylvania, Connecticut and Massachusetts. It has $39 billion in assets and $29 billion in deposits.