Rochester's First National goes on the prowl in WNY. (First National Bank of Rochester; Western New York)

The Buffalo market continues to beckon Rochester lenders.

First National Bank of Rochester is considering becoming the third Rochester-based financial institution to vie for business in the area, said President and Chief Executive Officer Carlos Carballada.

The bank -- smallest in the Rochester market -- would establish a full-service office and concentrate on small business and professional lending, he said. A potential location was not disclosed.

But before the project gets beyond the preliminary stage where it stands now, First National -- the principal subsidiary of FNB Rochester Corp. -- has to resolve problems with federal regulators, something that …