CLEVELAND, July 13, 2012 /PRNewswire/ -- KeyBank National Association ("KeyBank") completed its acquisition of 37 retail banking branches owned by HSBC Bank NA, ("HSBC") in Buffalo and Rochester, NY. Among the 37 branches KeyBank acquired, 26 branches are in its Western New York District and 11 are in its Rochester District, bringing to 100 the total number of KeyBank branches in those markets.

The acquisition, which adds approximately $2.1 billion in deposits and $260 million in loans, respectively (excluding approximately $70 million in credit card loans which is scheduled to close in September 2012), strengthens Key's ability to provide exceptional service to consumer, business banking and private banking clients in these markets while growing its presence and acquiring new customers. With the close of this transaction, Key has a total of 1,096 branches across 14 states.   

"We're focused on making sure this conversion goes smoothly, and that our new customers and employees have a positive experience," said Bill Koehler, president, Key Community Bank.  "We look forward to providing the solutions, advice and service that help our customers and communities thrive in these attractive markets."

"We will have additional staff in our branches and call centers to answer questions and respond to customer needs," Koehler added. "We are also extending branch hours on Tuesdays, Thursdays and Saturdays in all of our locations in these markets for a period of time after conversion."     

Under the terms of the transaction, KeyBank paid 4.4% premium on deposits, or approximately $95 million. The assumed deposits consist primarily of transaction and savings accounts. The purchased loans consist entirely of in-market performing loans, primarily residential real estate loans. The agreement excluded all commercial loans and deposits for clients with annual revenue greater than $30 million. Key offered employment to substantially all of the HSBC employees at the acquired branches.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Key's control.  Key's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Key's actual results to differ materially from those described in the forward-looking statements can be found in Key's Annual Report on Form 10-K for the year ended December 31, 2011, and Quarterly Report on Form 10-Q for the period ended March 31, 2012, each of which has been filed with the SEC and are available on Key's website at www.Key.com/IR and on the SEC's website at www.sec.gov.  Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management's views as of any subsequent date. Key does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements. 

About Key

KeyCorp (NYSE: KEY) traces its history back more than 160 years and is headquartered in Cleveland, Ohio. One of the nation's largest bank-based financial services companies, Key has assets of approximately $87 billion, as of March 31, 2012. 

Key provides deposit, lending, cash management and investment services to individuals and small businesses in 14 states under the name of KeyBank National Association.  Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name.

For more information, visit https://www.key.com/. KeyBank is Member FDIC.

SOURCE KeyCorp

Copyright 2012 PR Newswire

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