The Federal Reserve recently approved KeyCorp’s pending acquisition of First Niagara Financial Group, the Cleveland, Ohio-based bank said recently.

“We are pleased to reach another important milestone as we bring Key and First Niagara together,” KeyCorp CEO and Chair Beth Mooney said in a statement. “I’m also proud that our two companies have worked so well together to meet our commitment for clients, communities, employees, and shareholders.  We remain confident in and committed to meeting the growth and financial objectives of the First Niagara acquisition.”

The merger of First Niagara into KeyCorp is expected to be completed on or about Aug. 1, pending the satisfaction of customary closing conditions. Systems and client conversion is expected during the fourth quarter, subject to pending regulatory approval by the OCC for the merger of First Niagara Bank into KeyBank.

KeyCorp said this week that expenses associated with the merger took a bite out of its second quarter profits, which fell by about 4 cents per share in the quarter.