Cleveland–based KeyBank will acquire 37 HSBC branches in the Buffalo and Rochester areas later this year for a deposit premium of $110 million.
The locations are among those involved in First Niagara Bank’s planned acquisition of HSBC’s upstate New York branch network. First Niagara agreed to sell 26 of the branches located in Erie, Niagara, and Orleans counties as part of an agreement with the Justice Department in November.
The remaining 11 branches are located in Monroe County.
(Sponsored)
Are You Ready for the Pay Transparency Law?
Following the lead of New York City and other state and local jurisdictions, New York State’s pay transparency law will be effective September 17, 2023. The law ushers in a
Are You Ready for the Pay Transparency Law?
Following the lead of New York City and other state and local jurisdictions, New York State’s pay transparency law will be effective September 17, 2023. The law ushers in a
First Niagara, based in Buffalo, announced plans in July to acquire 195 HSBC locations in upstate New York, Westchester County, and Connecticut. The deal is expected to close in the second quarter.
When complete, the acquisition will give First Niagara 400 locations, $30 billion in total deposits, $38 billion in assets, and more than 6,000 employees in New York, Pennsylvania, Connecticut, and Massachusetts. The deal will make First Niagara a major player in the Syracuse, Utica, and Binghamton banking markets.
“We’re delivering on the plan we shared when we announced the HSBC branch acquisition last year, in spite of the very challenging operating environment,” First Niagara President and CEO John Koelmel said in a news release. “The outcome will be another significant and positive step toward realizing our vision for establishing a regional leadership position in the Northeast.”
The branches will give Key $2.4 billion in new deposits and loans of about $400 million. Key is paying a deposit premium of 4.6 percent.
The deal will close in the second quarter.
“Acquiring these branches enables Key to grow by acquiring customers and expanding our branch network,” Bill Koehler, president of Key Community Bank, said in a news release. “Customers will enjoy the added convenience of more banking locations, exceptional service and a broad selection of products, all from a bank that is financially strong and committed to these markets.”
Key plans to offer jobs to HSBC employees at the branches involved in the deal.
Key is number two in the Syracuse–area deposit market with 28 branch offices, more than $1.7 billion in deposits, and a market share of more than 16 percent. In the Utica–Rome area, Key has two branches, more than $64.4 million in deposits, and a deposit market share of more than 1.7 percent.
Contact Tampone at ktampone@cnybj.com
