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FOR IMMEDIATE RELEASE
Thursday, November 10, 2011
Justice Department Reaches Agreement with First Niagara Bank N.A. and HSBC Bank USA N.A. on Divestitures

WASHINGTON – The Department of Justice announced today that First Niagara Bank N.A. and HSBC Bank USA N.A. have agreed to sell 26 branch offices in the Buffalo, N.Y., area with approximately $1.6 billion in deposits, to resolve antitrust concerns from the sale of HSBC’s branch network in upstate New York to First Niagara.  HSBC is selling 195 branches in New York and Connecticut to First Niagara for approximately $1 billion.  The department said that, without the divestitures, the acquisition likely would have an adverse effect on competition in the Buffalo area for retail banking or small business banking services. 

 

Under the agreement with the Justice Department’s Antitrust Division, the companies will divest 26 HSBC branches located in Erie, Niagara and Orleans counties, N.Y.  The divestitures will include the commercial loans associated with the divested branches. 

   

“With the divestiture, consumers and small businesses in the Buffalo area will continue to enjoy the benefits of competition in banking services,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. 

 

The proposed merger is subject to the final approval of the Office of the Comptroller of the Currency (OCC).  The department said that it will advise the OCC that it will not challenge the merger provided that the parties divest the branch offices specified in the agreement and associated loans and deposits; and provided that the parties commit to the OCC that they will comply with the agreement with the department.

 

First Niagara Bank N.A., headquartered in Buffalo, is a wholly owned subsidiary of First Niagara Financial Group.  First Niagara Bank has about $31 billion in assets and about $19 billion in deposits.  It has branch offices in Connecticut, Massachusetts, New York and Pennsylvania. 

 

HSBC Bank USA N.A., headquartered in McLean, Va., is the principal subsidiary of HSBC USA Inc., an indirect wholly owned subsidiary of HSBC North America Holdings Inc.  As of June 30, 2011, HSBC Bank USA N.A. has about $195 billion in assets and operates 470 branches throughout the United States. 

 

The branches to be divested are:

 

Bank

State

County

Address

City

Zip

Deposits as of June 30, 2011

(000s)

HSBC

NY

Erie

5556 Main St

Williamsville

14221

$185,043                

HSBC

NY

Erie

2344 Niagara Falls Blvd

Tonawanda

14150

$60,804                        

HSBC

NY

Erie

6525 Transit Rd

East Amherst

14051

$78,888                       

HSBC

NY

Erie

366 Kenmore Ave

Buffalo

14223

$80,380                       

HSBC

NY

Erie

3107 Bailey Ave

Buffalo

14215

$40,937                       

HSBC

NY

Erie

2635 Main St

Buffalo

14214

$9,853                          

HSBC

NY

Erie

201 Amherst St

Buffalo

14207

$54,500                       

HSBC

NY

Erie

4455 Transit Rd

Williamsville

14221

$88,067                       

HSBC

NY

Erie

5151 Broadway

Depew

14043

$83,916                       

HSBC

NY

Erie

703 Ridge Rd

Lackawanna

14218

$48,530

HSBC

NY

Erie

306 West Ferry St

Buffalo

14213

$49,346                       

HSBC

NY

Erie

2345 Union Rd

West Seneca

14224

$113,559

HSBC

NY

Erie

1017 Broadway

Buffalo

14212

$17,867                       

HSBC

NY

Erie

1107 Lovejoy St

Buffalo

14206

$31,906                       

HSBC

NY

Erie

9094 Erie Rd

Angola

14006

$41,005

HSBC

NY

Erie

8591 Main St

Eden

14057

$43,765

HSBC

NY

Erie

4191 North Buffalo St

Orchard Park

14127

$59,489

HSBC

NY

Erie

11 Main St

Hamburg

14075

$105,526                    

HSBC

NY

Niagara

2952 Saunders Settlement Rd

Sanborn

14132

$37,924

HSBC

NY

Niagara

8301 Niagara Falls Blvd

Niagara Falls

14304

$78,000

HSBC

NY

Niagara

721 Center St

Lewiston

14092

$86,889

HSBC

NY

Niagara

150 Main St

Lockport

14094

$108,905

HSBC

NY

Niagara

5740 South Transit Rd

Lockport

14904

$31,510

HSBC

NY

Niagara

8683 Main St

Barker

14012

$24,029

HSBC

NY

Niagara

Main St & Park Ave

Middleport

14105

$31,681

HSBC

NY

Orleans

514 Main St

Medina

14103

$51,284

11-1479
Antitrust Division
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