Thread: HSBC Sells 195 U.S. Branches for $1 BILLION CASH

JULY 31, 2011, 3:42 P.M. ET.

HSBC Sells 195 U.S. Branches for $1 Billion

By ANUPREETA DAS

HSBC Holdings PLC, which has been scaling back its U.S. operations, struck a deal to sell 195 retail banking branches to First Niagara Financial Group Inc. for $1 billion in cash, the companies said.

The branches, which have $15 billion in deposits, are being sold at a 6.67% premium to the market value of the deposits. The branches are located mainly in upstate New York. HSBC said in May it would cut costs and review its U.S. operations, including its U.S. credit-card portfolio, which is also up for sale.

Separately, HSBC will also fold 13 of its branches in Connecticut and New Jersey into neighboring branches.

Headquartered in London, HSBC is one of the world's biggest banks, with large operations in Hong Kong, the Asia-Pacific region and Europe. It came through the financial crisis better than many of its rivals, but investors and analysts have been concerned that underperforming units in some markets are dragging down the bank's overall results. In the U.S., HSBC operates 470 branches in 13 states; a majority of the operations are in New York.

First Niagara had $19 billion in deposits and more than 300 branches across upstate New York, Pennsylvania, Connecticut and Massachusetts as of the second quarter. Since 2000, the company has been growing through acquisitions of rival banks.

J.P. Morgan Chase & Co. advised HSBC on the sale of the branches.

http://online.wsj.com/article/SB1000142 ... lenews_wsj

First Niagara Financial Group, Inc.,
through its wholly owned subsidiary, First Niagara Bank, N.A., has more
than $31 billion in assets, $19 billion in deposits and 300
branches. First Niagara is a multi-state community-oriented
bank providing financial services to individuals, families
and businesses across Upstate New York, Pennsylvania,
Connecticut and Massachusetts.

Fast Facts
• Founded in 1870 the bank has grown significantly in size
and reach and currently serves more than 730,000
customers across its multi-state operations.
• Listed on the Nasdaq Stock Market under the trading symbol: FNFG
• Geographic footprint extends across Upstate New York,
Pennsylvania, Connecticut and Massachusetts.
• A top 25 U.S. bank by assets and market capitalization.
• More than $16 billion in loans.
• First Niagara Risk Management among
top 50 Insurance Agencies in U.S.

First Niagara Financial Group
www.fnfg.com/