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Five Star-First Niagara deal OK'd

State banking regulators have approved the application of Five Star Bank to buy eight branches from First Niagara Financial Group half of which are former HSBC Bank USA offices.

Five Star, the subsidiary of Warsaw-based Financial Institutions, received the go-ahead from the state Department of Financial Services to buy four First Niagara offices in Medina, Waterloo, Batavia and Brockport. The Waterloo office will be consolidated with an existing Five Star office.

The state also approved the bank's plans to buy four HSBC offices in Elmira, Horseheads, Elmira Heights and Albion. All but the Albion office will also be consolidated into existing locations.

Acquisition of the first four was already approved by federal officials and is slated to close June 22, with conversion to follow over that weekend. The HSBC purchase is slated to wrap up Aug. 18, with that conversion following over the weekend.