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Citizens Financial to acquire HSBC's Long Island branches

HSBC Bank has more than a dozen branches

HSBC Bank has more than a dozen branches on Long Island that will be acquired by Citizens Financial Group Inc. Above, a logo outside a branch in Manhattan. Credit: AP/Mark Lennihan

Citizens Financial Group Inc. will acquire HSBC Bank's Long Island branches as part of a deal for its East Coast assets and national online deposit business.

The deal includes 80 East Coast branches: 66 in the New York City metropolitan area; nine in the mid-Atlantic and Washington, D.C., region, and five in Southeast Florida.

HSBC has 16 branches on Long Island.

Citizens Financial will add $9.2 billion in deposits and $2.2 billion in outstanding loans once the deal closes in the first quarter of 2022.

Terms of the transaction were not disclosed.

The deal was announced after the stock market close on Wednesday. On Thursday, shares of Citizens Financial gained 2%, closing at $50.09.

Once the acquisition closes, the branches will adopt the Citizens Bank brand of the Providence, Rhode Island, company. Citizens Bank currently has no presence on Long Island, a spokesman said.

HSBC also agreed to sell 10 West Coast branches and about 50,000 customer accounts with $1 billion in deposits and $800 million in loans to Cathay Bank, a unit of Cathay General Bancorp.

Another 35-40 U.S. branches will be shuttered, HSBC said.

The transactions are part of a pivot by London-based HSBC Holdings PLC toward Asia and away from some competitive U.S. and European markets.

Reuters reported that HSBC also is seeking to sell its French banking assets.

HSBC said it plans to retain 20-25 offices in New York City, San Francisco, Los Angeles, Miami and other U.S. locations to serve about 300,000 high-net-worth accounts that it will retain.

Citizens Financial Group had assets of $187.2 billion as of March 31 with about 1,000 branches in 11 states in New England, the Mid-Atlantic and Midwest.

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