KeyCorp completes acquisition of HSBC branches in upstate New Yorkby jmaloni
Deal strengthens upstate New York franchise; provides customers with added convenience and access
KeyBank has completed its acquisition of 37 retail banking branches owned by HSBC Bank NA in Buffalo and Rochester. This transaction strengthens Key's ability to provide exceptional service to consumer, business banking and private banking clients in these markets while growing its presence and acquiring new customers.
The acquisition, which adds approximately $2.1 billion in deposits and $260 million in loans, respectively (excluding approximately $70 million in credit card loans, which is scheduled to close in September 2012), brings to 74 the number of branches in Key's Western New York district and 26 in its Rochester district.
"We are excited by the possibilities this transaction offers KeyBank and our customers in this market," said Gary Quenneville, president, KeyBank's Western New York district. "It enables Key to expand the reach of our award-winning customer service, acquire new customers and offer greater convenience to those we serve. We're also proud to support the communities where we do business."
He said that Key donates approximately $500,000 annually in actual and in-kind services to support Buffalo-area charitable organizations and approximately $200,000 annually to organizations in the Rochester area.
"Acquiring these branches enables Key to grow by acquiring customers and expanding our branch network," noted Hugh Donlon, president, northeast regional, Key Community Bank, which serves consumers, small and medium-sized businesses. "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."
"KeyBank has earned an enviable record for delivering an excellent customer experience," Donlon added, "and we're looking forward to providing our new customers with award-winning service." Learn more about Key's nationally recognized service acumen.
Under the terms of the transaction, KeyBank paid 4.4 percent premium on deposits, or approximately $95 million based on current deposit balances. The assumed deposits consist primarily of transaction and savings accounts. The purchased loans consist entirely of in-market performing loans, primarily residential real estate loans. The agreement excluded all commercial loans and deposits for clients with annual revenue greater than $30 million.
HSBC customers were mailed a welcome kit last month with all of the information they need to transition to becoming a KeyBank customer. For additional information and answers to frequently asked questions, visit Key's dedicated conversion website athttps://www.key.com/about/welcome-hsbc-clients.jsp.
Key offered employment to substantially all of the HSBC employees at the acquired branches.