HSBC Bank USA Branch Network Announcement Customer Frequently Asked Questions

HSBC Branch Network Announcement Customer Frequently Asked Questions

20 January 2012

Update to Questions Related to Branch Sale.

1. Where can I find more information about today's announcement?

You can find out more information by reading the news release, issued by First Niagara Bank, N.A. Additionally, you can reference the news releases issued by Community Bank, N.A. and Five Star Bank.

2. What branches are included in the announcement made today by First Niagara, Community Bank, and Five Star Bank?

The announcement includes 20 branches in the Western New York Region. This list identifies the 16 branches that are part of this announcement and will be purchased by Community Bank. This list identifies the 4 branches that are part of this announcement and will be purchased by Five Star Bank.

Update to Department of Justice (DOJ) Announcement Questions

3. Where can I find more information about the DOJ Announcement?

You may find out more information by reading the news release, issued by First Niagara. Additionally, you can reference the news release, issued by Key Bank.

4. What branches are included in the announcement made today by First Niagara,N.A. and KeyBank, N.A.?

The announcement includes 26 branches in the Western New York Region, and 11 branches in the Rochester area. This list identifies the branches that are part of this announcement.

Department of Justice (DOJ) Announcement Related Questions

5.Where can I find more information about the DOJ Announcement?

You may find out more information by reading the Press Statement, released by First Niagara. Additionally, you can read a summary of the Letter of Agreement between the Department of Justice, HSBC and First Niagara.

6.What branches are specifically included in the divestiture announced by the Department of Justice (DOJ)?

The announcement made by the DOJ includes 26 branches in the Western New York Region. This list includes the branches that are part of the divestiture.

7.What does Divestiture mean as it relates to me and my relationship(s) with HSBC?

All transactions of this type are subject to regulatory approval by the Department of Justice (DOJ). As a condition of such approval, and to maintain sufficient competition among retail banks in the upstate market, First Niagara is being required to sell specific branches to another buyer.

8.Why are some of the HSBC branches being divested to another financial institution?

The sale or divestiture of 26 HSBC branches in the Western New York region is required by the Department of Justice and banking regulators to meet guidelines limiting the concentration of deposits in a market. Divestitures such as this are typical when two banks merge and have markets that overlap. The divestitures are contingent on the closing of the HSBC/First Niagara transaction.

9.How and when will I know who the new Bank will be?

While we do not know exactly when the new company will be announced, you will receive a communication shortly after the announcement. Additional information will be provided at that time.

10.Will I receive a communication about any changes that will be made to my banking relationship?

Yes. You will receive communications well in advance of any changes to your accounts of banking relationship.

11.Who should I contact if I have additional questions about this transaction?

If you have any questions for HSBC regarding this announcement, please see a member of our branch team, call 800-975-HSBC(4722), or send us a message via our website, www.us.hsbc.com

12. If I bank in one of the branches that are being sold, or divested, what do I need to do now?

There is no action required by you. Please continue to bank as you always have. Upon completion of the sale, your banking relationships will be transferred to the appropriate buyer. We thank you for your business and support and will ensure the change is completed with as minimal disruption to you as possible.

General Frequently Asked Questions - Related to HSBC Sale to First Niagara

Personal Banking, Advance and Premier Customers

13. What branches are specifically impacted by this sale?

This transaction includes 183 branches in Upstate New York (including all New York State counties North and West of Westchester County) along with 4 branches in Westchester County, 2 branches in Putnam County, New York, and 6 branches in Connecticut. This list includes the branches that are part of the transaction.

14. Why did you decide to sell portions of the branch network?

HSBC has been undergoing a review of the markets in which we operate globally to reposition our businesses around our vision to become the leading international bank. Consistent with HSBC's global strategy, HSBC Bank USA has been conducting an analysis of its retail branch network to align the size and locations of our U.S. branches with those markets with strong international connectivity. As an outcome of this analysis, HSBC is selling its retail branch network in Upstate New York, 4 branches in Westchester County, 2 branches in Putnam County, New York, and 6 branches in Connecticut to First Niagara Bank, N.A.

15. When will my branch change?

We do not have a confirmed date for transition. As of today, there are no changes to any of your deposit, loan, credit card or investment products or services. You will be receiving further updates as soon as details are known.

16. I bank at one of the branches being sold, when will I receive more details?

It may be some time before the sale is completed and all the details are finalized but before your branch is transferred, you will receive information from your new bank regarding any action you may have to take. You don't need to take any action at this time. We will continue to post updates on our web site at www.us.hsbc.com as more details are available and will ensure our branch employees have all information available.

17. I bank at one of the branches being sold. Will I still be able to work with the same people I have developed a relationship with?

We are striving to ensure that this transition occurs with minimal disruption to you. We believe that this transaction will allow you to continue many of the relationships which you have built at your local branch over the years.

18. I maintain accounts at a branch being sold. What does this mean for my bank accounts? What will change regarding my credit card/mortgage/brokerage account?

As of today, there are no changes to any of your deposit, loan, credit card or investment products. If your account is held at one of the branches included in the transaction, your banking products held with that branch will be automatically transferred, upon completion of the sale.

19. I reside near a branch being sold, and have an Online Savings/HSBC Advance Account, but no other accounts with HSBC Will my account remain at HSBC?

Yes. If you do not have a branch relationship, your Online Savings/HSBC Advance Account will remain with HSBC regardless of where you reside.

20. I have an Online Savings/Advance Account, and also accounts at a branch which is included in this transaction. Will my Online Savings/Advance Account transfer with my other accounts?

Upon completion of the sale, if you have a branch relationship, all accounts associated with your branch relationship (including Online Savings/Advance) will be automatically transferred.

21. I maintain accounts at a one of the branches being sold and have set up automatic transfers/payments, what do I need to do?

22. I maintain accounts at a branch that is being sold. Can I walk into a First Niagara branch today and make a deposit to my HSBC account? If not, when will I be able to?

Not yet. It will be some time before the transaction is completed, in the meantime please continue to use your HSBC accounts as you have to date. You will be receiving further information in the coming weeks, but no action is required by you.

23. How can I learn more about First Niagara?

Please visit First Niagara's website at www.fnfg.com

24. I would like to contact First Niagara as I have questions for them. What are their contact details?

First Niagara can be contacted by visiting their website www.fnfg.com or calling toll free 800-421-0004.

25. Will you continue to maintain ATMs at non-branch locations (i.e. Buffalo Airport)?

As of today, our ATM network continues to operate without change. Upon completion of the sale, the HSBC ATM network across Upstate New York will be transferred.

26. I maintain accounts with HSBC at a branch that is being sold, and also have a separate bank account with First Niagara. Can I consolidate my HSBC and First Niagara accounts?

While consolidating HSBC and First Niagara accounts is not possible prior to the completion of the sale, customers will be able to work with First Niagara to consolidate duplicate accounts after the sale in completed.

27. I have a non-HSBC Credit Card, but see the HSBC logo on the back. Will this credit card transfer to First Niagara?

No. Upon completion of the sale, only HSBC branded credit cards for customers who reside in upstate New York will transfer.

28. I reside near a branch that is being sold. I have a HSBC credit card but no other products with HSBC. Will my credit card transfer?

Upstate customers holding HSBC credit cards but no other product with HSBC, where the account was opened in an affected branch will be impacted in this transaction and their credit card will transfer to the buyer. If the customer's credit card account was opened online, or through one of our call centers (and they have no other HSBC products), they will remain with HSBC.

29. What if I have checking accounts at an impacted branch, and also at another branch of HSBC USA which is not being sold?

As of today, there are no changes to any of your deposit, loan, credit card or investment products. Upon completion of the sale, only the accounts which are associated with the branches included in this sale will be transferred. Your accounts in other locations will continue as is with HSBC.

30. Are you making any other changes to the branch network in Connecticut and New Jersey?

In addition to the sale of retail branches to First Niagara, HSBC has decided to consolidate 13 branches located in Connecticut and New Jersey into nearby branches and the consolidation is expected to be completed in early 2012. We will continue to serve our customers through remaining branches and hope to minimize the impact on our customers and employees as much as possible. These actions will conclude the formal strategic review of the U.S. branch network that was announced during the Group Investor Day in May.

31. What does this branch consolidation in Connecticut and New Jersey mean for me as a customer there?

First, no action is required on your part. Upon completion of the consolidation, your accounts will be automatically transferred to your new HSBC branch nearby. After that, we will continue to serve your banking needs through our remaining branches in Connecticut and New Jersey or by phone and online at www.us.hsbc.com.

Customers residing outside Connecticut, New Jersey & Upstate New York

32. I am not located in Connecticut, New Jersey or Upstate New York. How do today’s announcements impact my accounts?

If your accounts are held in a branch that is not impacted by this announcement, there will be no change to your HSBC branch locations or accounts as a result of this announcement.

33. I opened an account at a branch that is being sold many years ago. I have since relocated elsewhere. Will my accounts transfer to First Niagara?

We encourage you not to make any changes to your accounts at this time. It may be some time before the sale is completed and not all the details have been finalized.

34. While the majority of my relationship is with a branch elsewhere, I do have an account with a branch that is being sold. What does this mean for me?

While there are no changes today, upon completion of the sale, the accounts you hold with branches that are being sold will transition, while the accounts you hold elsewhere will continue to be maintained by HSBC.

Commercial Banking (including Business Banking)

35. My company maintains a Business Banking relationship with a HSBC branch which is being sold. Is my relationship impacted in the sale?

There is no change to your Business Banking relationship (defined generally as commercial and industrial firms with annual sales under $30 million) today. Upon completion of the sale, Business Banking relationships held at impacted HSBC transactions will be transferred. However, companies which bank with HSBC's Global Banking, Corporate Banking, Commercial Middle Market (defined generally as commercial and industrial firms with annual sales above $30 million) or Real Estate Banking teams are not part of this transaction and accounts will continue to be with HSBC. Please contact your HSBC Relationship Manager who can answer any further questions you have.

36. My company maintains a Business Banking relationship with an HSBC branch that is being sold, what accounts will be transferred?

There is no change to your Business Banking relationship today. Upon completion of the sale, your company's deposits accounts, business loans, commercial credit cards, and investment accounts held at an impacted branch will automatically transfer.

37. Will the HSBC Business Banking Team I work with transition with me?

There is no change to the HSBC Business Banking team today. Upon completion of the sale, Business Banking employees who work within the branches being sold will also transfer.

38. Do you eventually plan to relocate or downsize the remaining Commercial Banking departments from Upstate?

Our Commercial Banking business is a key focus of HSBC's U.S. and global strategy. HSBC will continue actively providing commercial banking services to corporate clients in the Upstate New York region. Our Commercial Banking Business will be appropriately staffed and positioned for further development. We will continue to provide banking services at our commercial centers in Buffalo, Syracuse and Rochester, and Albany.

39. My company maintains a Corporate Banking or Middle Market Commercial account located near an impacted branch- is my relationship impacted?

No. This announcement does not impact accounts held with our Private Banking, Corporate Banking, Commercial Middle Market or Commercial Real Estate departments, regardless of where the account is currently held. If you have further questions, please contact your HSBC Relationship Manager.

Private Banking

40. I maintain a Private Banking account but live near a branch that is being sold. Are my accounts impacted?

No. This announcement does not impact accounts held with our Private Banking, Corporate Banking, Commercial Middle Market, or Commercial Real Estate departments, regardless of where the account is currently held. If you have further questions, please contact your HSBC Relationship Manager.