First Niagara (FNFG) to Acquire 37 HSBC Locations from KeyCorp (KEY); Will Pay $110M
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As First Niagara Bank, N.A. (Nasdaq: FNFG) continues to advance toward completion of the acquisition of HSBC Bank USA, N.A. (NYSE HBC) branches in Upstate New York and Connecticut in the second quarter of this year, the company today announced it has reached an agreement with KeyCorp (NYSE: KEY) for its wholly-owned subsidiary KeyBank N.A. to purchase 37 HSBC locations and assume approximately $2.4 billion in deposits and approximately $400 million in loans in the Buffalo and Rochester markets. Under the terms of the agreement, Key will pay First Niagara a deposit premium of 4.6%, or approximately $110 million, based on August 2011 deposit balances. Key's purchase includes all 26 HSBC locations slated for divestiture under First Niagara's November 2011 agreement with the Department of Justice (DOJ).
As announced in July 2011, when First Niagara completes its acquisition of the HSBC branches, the regional bank will have an enhanced leadership position in the Northeast, with more than 400 locations, $30 billion in total deposits, $38 billion in assets and more than 6,000 employees serving consumers, business and communities across New York, Pennsylvania, Connecticut and Massachusetts. The transaction will also provide First Niagara with number-one retail market share across Upstate New York, virtually doubling its number of branches in New York State to more than 200, stretching from Buffalo to Albany and down through the Hudson Valley.
As announced in July 2011, when First Niagara completes its acquisition of the HSBC branches, the regional bank will have an enhanced leadership position in the Northeast, with more than 400 locations, $30 billion in total deposits, $38 billion in assets and more than 6,000 employees serving consumers, business and communities across New York, Pennsylvania, Connecticut and Massachusetts. The transaction will also provide First Niagara with number-one retail market share across Upstate New York, virtually doubling its number of branches in New York State to more than 200, stretching from Buffalo to Albany and down through the Hudson Valley.
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