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First Niagara Moves Forward with HSBC Acquisition

Continuing its sell off, ""First Niagara Bank"":www.fnfg.com/ has announced its intention to liquidate another 27 branches.


The move is part of the company's transition following its acquisition of ""HSBC Bank's"":us.hsbc.com/ regional retail business in New York and Connecticut.


Earlier in January, First Niagara, which is based in Buffalo, New York, sold 37 of its locations. The company's aggressive sales strategy will facilitate the bank's plans to purchase 195 HSBC Bank branches in a deal that is reported to carry a price tag of around $1 billion.

First Niagara's most recent sale included ""Community Bank System"":www.communitybankna.com/, which bought 19 of the branches, and Financial Institutions subsidiary, ""Five Star Bank"":www.five-starbank.com/, which purchased the remaining eight branches.

The locations sold by First Niagara were primarily those in upstate New York. The branches are estimated to have been worth a combined total of $1.4 billion in deposits and another $315 million in loans.

The bank announced its maneuver to buy HSBC Bank's regional retail network last year, and First Niagara released a company statement that noted its plans to sell of around half of the branches. First Niagara's transaction earlier this month resulted in ""KeyCorp's"":https://www.key.com/ purchase of all 37 branches offered for sale.

About Author: Abby Gregory


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