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Community Bank System completed its purchase of three First Niagara Financial Group bank branches in the Finger Lakes, marking the final step in the very long and convoluted sale of 195 HSBC Bank USA branches that ultimately involved five banks.
DeWitt-based Community Bank bought two branches in Geneva and one in Canandaigua, with $100 million in deposits and $55 million in loans. The branches also included 20 employees and 7,000 customers. Community Bank consolidated one of the Geneva branches with an existing Community Bank office to better serve customers
"We have worked very hard to make the transition as simple as possible for customers, and we appreciate the dedication of both our Community Bank associates and the First Niagara team," Mark Tryniski, Community Bank CEO, said in a news release.
Community Bank earlier bought 16 HSBC offices from First Niagara on July 20, reopening them three days later and adding 50,000 new customers. In all, the bank gained $218 million in loans and $955 million in deposits in 11 upstate New York counties from Western New York to the North Country. It now has 182 branches in 40 counties of upstate New York and northeastern Pennsylvania, with more than $7.5 billion in assets.
The dual deals were part of First Niagara's much larger purchase of HSBC's entire branch network across upstate New York and southwestern Connecticut, with about $15 billion in deposits, $2.8 billion in loans and $4.3 billion in investment assets.
First Niagara then sold 64 branches - with $3.8 billion in deposits and $713 million in loans - to Community Bank, KeyCorp's KeyBank and Financial Institutions' Five Star Bank, and closed 35 others. All transactions have now been completed.
email: jepstein@buffnews.com