HSBC Branch Network Announcement Customer Frequently Asked Questions
7 May 2012
General Questions Related to Branch Sale.
1. Where can I find more information about the branch sale announcement?
You can find out more information by reading the news releases, issued by First Niagara Bank, N.A. and Key Bank, N.A. Additionally, you can reference the news releases issued by Community Bank, N.A. and Five Star Bank.
2. 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.
3. What branches are included in sale to First Niagara, Community Bank, and Five Star Bank?
This list identifies the branches that are part of this announcement.
4. Why are some of the HSBC branches being divested to another financial institution? Your first announcement stated that you were selling these branches to First Niagara?
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 have markets that overlap.
5. Will I receive a communication about any changes that will be made to my banking relationship?
Yes. If you have not already, you will receive communications well in advance of any changes to your accounts or banking relationship.
6. 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
7. If I bank in one of the branches that are being sold, or divested, what do I need to do now?
Unless otherwise instructed, at this time 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.
8. When will my branch change?
If your account(s) and/or banking relationship is being transitioned to First Niagara, you can expect your branch to change on May 18. If you have not already, you will be receiving further details from HSBC and First Niagara outlining the details of this transition. For customers transitioning to KeyBank, Community Bank or Five Star Bank, 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.
9. I bank at one of the branches being sold, when will I receive more details?
You should have already, or soon 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.
10. 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.
11. 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.
12. 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 2011.
13. 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.
14. How can I learn more about First Niagara?
Please visit First Niagara's website at www.firstniagara.com. You can also contact their Customer Service Center at 800.421.0004.
15. How can I learn more about KeyBank?
Please visit KeyBank's website at www.key.com. You can also reach them by calling toll free 800.539.2968
16. How can I learn more about Community Bank?
Please visit Community Bank's website at www.communitybankna.com. You can also reach them by calling toll free 800.388.4679
17. How can I learn more about FiveStar Bank?
Please visit FiveStar Bank's website at www.five-starbank.com. You can also reach them by calling toll free 877.226.5578
Personal Banking, Advance and Premier Customers
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?
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. If for any reason one of your products will not transfer with the branch sale, you will be informed of that fact. If you have not already, in the coming weeks you will be receiving more information about your new bank.
19. I currently hold an account at one of the branches being sold to First Niagara; however I also have an account with one of the branches being sold to KeyBank, Community Bank and/or Five Star Bank. What will happen to my banking relationship?
While all of the details have yet to be finalized, please be assured we have made every effort to ensure that these banking relationships will be transferred in their entirety to one financial institution upon completion of the sale. Most importantly, there is no action required on your part. You will be receiving additional information about the transfer over the next several weeks.
20. 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.
21. 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.
22. I maintain accounts at a one of the branches being sold and have set up automatic transfers/payments, what do I need to do?
You should have already (or soon 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.
23. I maintain accounts at a branch that is being sold. Can I walk into a First Niagara, KeyBank, Community Bank or FiveStar Bank 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.
24. Will you continue to maintain ATMs at non-branch locations (i.e. Buffalo Airport)?
Upon completion of the sale, the HSBC ATM network across Upstate New York, including Buffalo Airport, will be transferred.
25. 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.
26. 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, remain with HSBC.
27. My checking account is being sold to one of the buyers. Can I still use my HSBC checks?
After the sale, you should stop using your HSBC checks and start using the checks the buyer issues to you. To ensure a smooth transition of your banking service, HSBC has arranged with the buyer the continued processing of your HSBC checks for a limited time (no more than 90 days) after the sale. After that, your HSBC checks may be returned unpaid.
28. My credit card and/or checking account is being sold to one of the buyers, what will happen to the automatic payments that I have set up with my credit card(s) and/or checking account?
You can expect to receive a new credit card prior to your account being transferred to your new bank. When you receive it, please follow instructions that will be enclosed about re-establishing your recurring payments to avoid interruption of your payments. Recurring payments will not automatically transfer to your new bank. Automatic payments that are currently set up on your checking account will need to be reestablished as well.
29. My checking account is being sold to one of the buyers, what will happen if I deposited an item that gets returned?
HSBC has arranged with the buyer to continue processing returned items for a limited time (no more than 90 days) after the sale. After that, we will be unable to process any further transactions on your old HSBC account.
30. I currently have HSBC accounts and use your international global transfer/global view capabilities. My U.S. based account(s) are scheduled to be sold to one of the buyers. What will happen to these tools?
Unfortunately, after your account is purchased by and transferred to your new bank these features will no longer be available to you. We apologize for the inconvenience this may cause.
31. I currently have accounts with HSBC, as well as my new bank. What will happen to my FDIC Insurance coverage when my HSBC account is moved?
For questions relating to your FDIC insurance coverage, please contact your new financial institution.
Commercial Banking (including Business Banking)
32. How can I tell which accounts are associated with a branch being sold?
If you have not already, over the next several weeks, you will receive a letter outlining in detail all changes that will be made to your banking relationship, including to which bank you will be transferred, upon completion of this sale. In the meantime, please be assured that no changes are being made to your account today and you do not need to take any action. We will be working closely with our clients to provide full details as soon as possible.
33. My company maintains a Business Banking relationship with a HSBC branch which is being sold. Is my relationship impacted in the sale?
Upon completion of the sale, Business Banking relationships held at impacted HSBC branches 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.
34. My company maintains a Business Banking relationship with an HSBC branch that is being sold, what accounts will be transferred?
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.
35. Will the HSBC Business Banking Team I work with transition with me?
Upon completion of the sale, employees who work within the branches being sold, including Business Banking and Mortgage, will transfer. Many of these employees will be given opportunities with the buyers.
36. Do you eventually plan to relocate or downsize the remaining Commercial Banking departments from Upstate?
Commercial Banking is a key focus for HSBC and we will continue to provide commercial banking services to corporate clients. In addition, a small group of Business Banking accounts will also stay with HSBC, in most cases due to their international connectivity. HSBC looks forward to serving you from three newly established Commercial Service Centers which will be located throughout the New York Region, (Buffalo, Syracuse and Rochester.) Please see full details of these offices below:
Buffalo
One HSBC Center, 18th Floor
Buffalo, New York 14203
Available: April 6, 2012
Syracuse
250 South Clinton Street, Suite 520
Syracuse, New York 13202
Available: April 23, 2012
Rochester
780 Clinton Square, Suite 780
Rochester, NY 14604
Available: May 7, 2012
The hours of operation at for the Buffalo and Rochester sites will be 9:00AM ET to 4:00PM ET, Monday through Friday. The hours of operation for the Syracuse site will be 12:00 ET to 4:00PM ET, Monday through Friday. We will be sending a letter with additional details on the Commercial Service Centers to all retained Commercial Banking customers.
Please keep in mind, there is no change to our branch network today and you can continue to bank as you usually do. We encourage you to contact your relationship manager to discuss your individual needs. HSBC will continue to provide high quality service for your commercial banking relationship.
37. My company maintains a Corporate Banking or Middle Market Commercial account located near an impacted branch- is my relationship impacted?
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.
38. 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.
39. 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.
40. 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
41. 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.
