Shrugging off Monday's stock market rout, First Empire State Corp. announced plans Tuesday to acquire Onbancorp in a stock-and-cash transaction valued at $872 million.

The deal, slated to close in the first quarter, would create the largest banking company in upstate New York in terms of deposits, which would total $15.2 billion. Assets would jump to $19.2 billion, lifting First Empire 12 notches to become the 40th-largest banking company in the United States, with 236 branches in New York State and 19 in Pennsylvania.

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