M&T Now #1 Bank In Buffalo

October 5, 2011 Updated Oct 5, 2011 at 8:22 AM EDT

By WKBW News
By Alyssa Kline - Business First

...

M&T Now #1 Bank In Buffalo

October 5, 2011 Updated Oct 5, 2011 at 8:22 AM EDT


The presumed end of HSBC Bank USA N.A.'s era as the largest bank in Western New York is now official, according to data released today by the Federal Deposit Insurance Corp.

The bank, whose Upstate New York retail branches are being sold as part of a global initiative to cut expenses, has slipped to the No. 2 spot on the FDIC's annual deposit-market report. It held $5.8 billion in local deposits, or about 18.6 percent of the total deposit share, as of June 30. The prior year, the bank reported $13 billion in deposits, representing about 35 percent of the deposit share.

The decline makes room for M&T Bank Corp. and HSBC-acquirer First Niagara Financial Group Inc., parent of First Niagara Bank. M&T moved up to the No. 1 position with $11.1 billion in deposits, capturing 35.8 percent of the deposit share. First Niagara held its position at No. 3, but added about $600 million in deposits to capture 13.7 percent of the deposit share.

M&T is also gaining ground in Baltimore, rising to No. 2 behind Bank of America.

First Niagara is slated to purchase 195 HSBC retail branches, including 70 in the Buffalo region, for roughly $1 billion in cash. The deal, first announced July 31, may close during the first quarter of 2012. It is expected to include divestiture of certain branches, but First Niagara officials have not outlined which branches would be sold or closed, saying they are waiting for regulatory agencies to finish reviewing the purchase.

Although it will no longer maintain a retail presence here, HSBC plans to stick with its commercial banking services, officials have said.

In total, the 23 banking institutions in the eight counties of Western New York held $31.1 billion in local deposits as of June 30.

Based on deposits, the region's banks rank as follows:

• M&T Bank, $11.1 billion in deposits, 35.8 percent of the deposit share.

• HSBC Bank USA N.A., $5.8 billion in deposits, 18.6 percent of the deposit share.

• First Niagara Bank, $4.3 billion in deposits, 13.7 percent of the deposit share.

• KeyBank N.A., $2.8 billion in deposits, 8.9 percent of the deposit share.

• Citizens Bank, $1.4 billion in deposits, 4.5 percent of the deposit share.

• Bank of America, $1.2 billion in deposits, 4 percent of the deposit share.

• Community Bank N.A., $823.2 million in deposits, 2.7 percent of the deposit share.

• Five Star Bank, $812.9 million in deposits, 2.6 percent of the deposit share.

• Evans Bank, $588.4 million in deposits, 1.9 percent of the deposit share.

• Northwest Savings Bank, $495 million in deposits, 1.6 percent of the deposit share.

• Bank of Castile, $468.5 million in deposits, 1.5 percent of the deposit share.

• Lake Shore Savings Bank, $382.1 million in deposits, 1.2 percent of the deposit share.

• Alden State Bank, $193 million in deposits, 0.6 percent of the deposit share.

• Bank of Akron, $190.6 million in deposits, 0.6 percent of the deposit share.

• Cattaraugus County Bank, $159.5 million in deposits, 0.5 percent of the deposit share.

• Steuben Trust Co., $155.4 million in deposits, 0.5 percent of the deposit share.

• JPMorgan Chase Bank N.A., $73.5 million in deposits, 0.2 percent of the deposit share.

• Bank of Holland, $63.3 million in deposits, 0.2 percent of the deposit share.

• Medina Savings & Loan Association, $32.9 million in deposits, 0.1 percent of the deposit share.

• First Citizens National Bank, $31.5 million in deposits, 0.1 percent of the deposit share.

• Bank of Cattaraugus, $12.8 million in deposits, 0.04 percent of the deposit share.

• Woodforest National Bank, $2.8 million in deposits, 0.01 percent of the deposit share.

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