NeW

KeyBank agrees to buy 37 upstate NY HSBC branches

AP News
|
Posted: Jan 12, 2012 12:14 PM
KeyBank agrees to buy 37 upstate NY HSBC branches

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.