The world's local bank
Portion of HSBC’s trust business to be acquired by Alliance Bank
19 August 2004
HSBC Bank USA, N.A. and Alliance Bank, N.A. have entered into an agreement for Alliance Bank, a wholly-owned subsidiary of Alliance Financial Corporation, to acquire part of HSBC Bank’s personal trust business, enabling HSBC to focus on its larger trust accounts. The consideration of US$9.5 million is subject to adjustment based on the value of the trust assets transferred.
The acquisition, which is pending regulatory approval as well as approval by the New York State Supreme Court, is expected to close in December 2004.
Gerard Joyce, Senior Vice President for Personal Trust at HSBC Bank USA, said: “This sale reflects a repositioning of our trust business to target other segments of the market. Alliance’s interest in expanding its trust business coincided with our desire to redefine our strategy to focus on our larger trust accounts.
“We know that our clients will continue to be well served by Alliance and, since they will be opening an office in Buffalo, our trust administration employees will be able to continue to do the work they enjoy in the community they love.”
Alliance Financial Corporation Chairman, President and Chief Executive Officer and bank President and CEO Jack H Webb, said: “We are delighted to have the opportunity to acquire a business firmly rooted in upstate New York, where we have been growing our presence.”
Sandler O’Neill & Partners, L.P. represented Alliance Bank and Berkshire Capital Corporation represented HSBC in the transaction.
Useful tools
Increase font
Decrease font