Community Bank acquiring 19 branches in New York

First Niagara Bank has announced agreements to sell 27 branches to two upstate buyers as it moves ahead with its acquisition of HSBC Bank’s regional detail network.

The banks, which are spread across Upstate New York, include branches in Albion, Batavia, Medina, Springville, Gowanda and Westfield. The locations have a combined $1.4 billion in deposits and $315 million in loans.

Community Bank System Inc., through its banking subsidiary, Community Bank, has acquired 19 branch-banking locations across Upstate New York markets from First Niagara Bank, N.A. and HSBC Bank USA, N.A. Under the terms of agreements, Community Bank will acquire approximately $218 million in loans and $955 million in deposits at a blended deposit premium of 3.22 percent.

Last year, First Niagara bought 195 HSBC Bank branches in New York and Connecticut. At that time, bank representatives said that half of the branches acquired in the $1 billion deal would be sold or divested. Last week, First Niagara announced the separate sale of 37 branches. Eight of those will be sold to Five Star Bank, a subsidiary of Financial Institutions out of Warsaw.

Community Bank, First Niagara and HSBC will communicate with customers of these branches to explain potential changes to their banking relationships following the transfer. There will be no changes to customer accounts prior to the completion of the transaction. Customers of the acquired branches need not take any action at this time.

Branches to be acquired include Gowanda and Springville. The transaction is expected to close during the third quarter of 2012, subject to regulatory review and approval.

For more information, visit www.communitybankna.com.