KeyBank hopes to make a big splash in Upstate New York by agreeing to purchase HSBC retail branches being sold by First Niagara Bank. A total of 37 branches, currently carrying HSBC signage, are scheduled to sport KeyBank logos by late June.
Some HSBC bank customers in Upstate New York can expect to become KeyBank customers in the second quarter of 2012.
Announced Thursday, First Niagara Bank has agreed to sell 37 HSBC branches in the Erie, Monroe, Niagara, and Orleans counties (Buffalo and Rochester areas) in New York to KeyCorp, parent of KeyBank. Nearly $2.4 billion in deposits and roughly $400 million in loans will be transferred over to KeyBank.
“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,” said Bill Koehler, president of Key Community Bank, in a statement.
Last year, First Niagara entered an agreement with HSBC to buy 195 of its bank branches but the Department of Justice required First Niagara to divest some branches to reduce market share.
The sale of its Upstate New York was part of HSBC’s strategy to focus operations on the international sector.
Accounts on the Move
HSBC customers with deposit accounts, loans, credit cards, and investment accounts that are affected by the sale will experience no changes to their accounts until the deal is closed. In most bank merger and acquisition agreements, little work is required on the customer’s end to ensure a smooth transition.
A First Niagara Bank spokesperson did not reply to an inquiry on how many HSBC customers will be impacted by the sale.
HSBC customers who would like to see if they’ll be part of the customer base being transferred to KeyBank, click here (PDF).
KeyBank scored a competitive 4-star rating on its Bank Report Card for have a large branch presence and strong financial stability.