CLEVELAND, OH /PRNewswire/ -- KeyCorp (NYSE: KEY) announced that its wholly-owned subsidiary, KeyBank National Association ("KeyBank"), has signed a purchase and assumption agreement to acquire 37 retail banking branches currently owned by HSBC Bank NA, ("HSBC") in Buffalo and Rochester, NY.
This transaction will strengthen Key's ability to grow its presence, acquire customers and provide exceptional service to consumer, business banking and wealth management clients in these markets.
The branches are being sold by First Niagara Bank, N.A. in connection with their acquisition of HSBC's upstate New York banking franchise. The deposits associated with these branches total approximately $2.4 billion, while loans total approximately $400 million.
"This transaction is an exciting opportunity to strengthen our franchise in these attractive markets and, at the same time, build long-term shareholder value," according to KeyCorp Chairman and CEO Beth Mooney (top right photo).
Under the terms of the purchase and assumption agreement, KeyBank will pay a 4.6% premium on deposits, or approximately $110 million based on current deposit balances. The assumed deposits consist primarily of transaction and savings accounts. The loans to be purchased consist entirely of in-market performing loans, primarily residential real estate loans. The agreement excludes all commercial loans and deposits for clients with annual revenue greater than $30 million.
"Acquiring these branches enables Key to grow by acquiring customers and expanding our branch network," noted Bill Koehler (lower left photo), president of Key Community Bank. "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 is Member FDIC.
Contact:
ANALYSTS,
MEDIA,
Web Site: http://www.key.com
No comments:
Post a Comment