CORRECTION: First Niagara is selling 37 branches in western and upstate New York to KeyBank. An earlier version of this story mistated the number being sold.
First Niagara Bank will sell 37 branches it buys from HSBC Bank USA in upstate New York to Ohio regional lender KeyBank. It will keep the HSBC branches it buys in Connecticut.
First Niagara must sell the 26 branches in the Buffalo  and 11 others in the Rochester area for $110 million to Cleveland’s KeyBank as part of its antitrust clearance with the U.S. Justice Department.
First Niagara agreed last July to pay HSBC $1 billion for its Connecticut and New York branch network. Altogether, the 37 branches have deposits totaling about $2.4 billion and some $400 million in loans.
In all 195, HSBC branches will be acquired. Further divestitures may be announced, a bank spokesman said.
HSBC’s Connecticut branches being bought are in Fairfield (2), Monroe, Ridgefield Shelton and Wilton.
After the deals, First Niagara said it will have more than 200 branches spanning New York state. Its regional territory also covers Connecticut, Massachusetts and Pennsylvania.
