First Niagara Bank says it will sell 37 HSBC branches to KeyBank as part of its purchase of HSBC's entire upstate New York retail network.
Cleveland, Ohio-based KeyBank will pay First Niagara a deposit premium of about $110 million, or just under 5 percent, for the branches in Erie, Niagara, Orleans and Monroe counties.
The purchase includes all 26 of the HSBC branches that First Niagara promised to divest in a November agreement with the Justice Department to satisfy antitrust concerns.
Buffalo-based First Niagara announced over the summer that it planned to buy 195 HSBC branches in New York and Connecticut for $1 billion cash. The deal is expected to close early this year.
The sale is part of a global restructuring by London-based HSBC Holdings.