First Niagara expects May completion for HSBC deal

AP News
|
Posted: Feb 17, 2012 12:13 PM
First Niagara expects May completion for HSBC deal

First Niagara Bank said Friday it expects its $1 billion purchase of HSBC Bank's upstate New York retail operations to be completed by mid-May and is making plans to consolidate 35 locations where First Niagara and HSBC have buildings within a mile or two of each other.

First Niagara, a unit of First Niagara Financial Group Inc. of Buffalo, previously announced the sale of 64 HSBC branches in keeping with plans to sell or close about half of the 195 locations included in the acquisition to satisfy regulatory concerns.

Customers will begin receiving regular updates about the effects on their accounts, said Mark Rendulic, a First Niagara executive vice president who acknowledged a lack of details since the sale was announced in July.

"Given the multi-faceted nature of this transaction, we haven't been able to give our customers the level of information that we would typically provide," said Rendulic, executive vice president of retail banking. "But we are pleased to now begin to regularly do that with the appropriate and necessary clarity as to what this transaction means to them in the weeks and months ahead."

First Niagara said 19 HSBC branches across New York state will be absorbed by a nearby First Niagara branch, while 15 upstate First Niagara offices and one in Shelton, Conn., will merge into existing HSBC buildings that will be renamed First Niagara.

HSBC employees will be among 1,200 workers to be hired by First Niagara, the bank said.

The sale, expected to be completed May 18 subject to regulatory approval, will about double First Niagara's presence in New York to more than 200 locations. It will increase the total number of First Niagara branches in New York, Pennsylvania and Connecticut to 430, with $30 billion in total deposits, $38 billion in assets and more than 6,000 employees.

HSBC Bank USA, a subsidiary of British banking company HSBC Holdings PLC, operates more than 470 bank branches in the U.S. HSBC will continue to provide commercial banking services in the region.

____

Online:

https://www.fnfg.com/