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Five Star branch deal approved

The Federal Reserve Bank of New York has approved the request by Financial Institutions' Five Star Bank to buy four branches from First Niagara Financial Group.

The branches, in four different counties, are in Waterloo in Seneca County, Batavia in Genesee County, Medina in Orleans County and Brockport in Monroe County. The Waterloo office will be consolidated into an existing Five Star branch.

The purchase includes $74 million in loans and $159 million in deposits.

Under standard rules, the proposed acquisition cannot be completed for 15 days, so the closing is scheduled for June 22, with the conversion slated to occur over that weekend.

Five Star is also buying four former HSBC Bank USA branches from First Niagara, with $20 million in loans and $217 million in deposits, but that deal is slated to close on Aug. 17. In all, Five Star is paying a price of $16 million for the eight branches.

The sale follows First Niagara's $900 million purchase of 195 HSBC branches across the state.

email: jepstein@buffnews.com