Looking to strengthen its position in central New York, Niagara Bancorp of Lockport said Wednesday that it would buy Cortland-based CNY Financial Corp. for $87.9 million of cash.

Niagara, the $1.7 billion-asset parent of Lockport Savings Bank, would pay $18.75, or 1.3 times book value, for each share of CNY stock. CNY's subsidiary, $296 million-asset Cortland Savings Bank, would continue to operate under its own name and board of directors.

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