KeyBank National Association has bought 37 retail banking branches from HSBC Bank in Buffalo and Rochester, New York for an undisclosed sum.
The regional lender said that the deal boosts its upstate New York Franchise; provides customers with added convenience and access to banking services.
Out of 37 branches acquired, 26 branches are located in its Western New York District while the remaining 11 are situated in its Rochester District, bringing the total number of KeyBank branches to 100 in these markets.
Under the terms of the acquisition, the deal provides almost $2.1bn in deposits and $260m in loans, thus enhancing Key’s ability to offer ideal service to consumer, business banking and private banking clients.
After the completion of the deal, KeyBank will manage a total of 1,096 branches across 14 states in the US.
Key Community Bank president Bill Koehler said the bank is focused on making sure the conversion goes smoothly, and that their new customers and employees have a positive experience.
"We look forward to providing the solutions, advice and service that help our customers and communities thrive in these attractive markets,’ Koehler added.
Under the terms of the transaction, KeyBank paid 4.4% premium on deposits, or nearly $95m and has provided employment to all of the HSBC employees at the acquired branches.
Key offers deposit, lending, cash management and investment services to individuals and small businesses in 14 states under the name of KeyBank National Association.