PROVIDENCE – Citizens Bank is expanding its East Coast presence under an agreement to take over 80 branches and the national online deposit business for a major European bank.
Citizens Financial Group, Inc., the parent company for the Rhode Island-based bank, announced its acquisition deal with HSBC U.S. NA in a statement on Wednesday. The deal comes as HSBC Holdings, the London-based parent company for HSBC U.S. announced plans to pull back its presence in the U.S. – selling off 90 of its 148 branches and “winding down” activities at the remaining locations, some of which will be repurposed as international wealth centers.
HSBC earlier this year unveiled plans to redirect its attention and strategy to Asia, where it believes it could be more competitive.
Under the acquisition, Citizens will pick up 80 branches, 66 of which are located in Greater New York City, as well as a handful each in Washington, D.C., and southeast Florida. The deal will add $9.2 billion in deposits and $2.2 billion in loans to Citizens’ portfolio, bringing in about 800,000 new customers, the release stated.
Citizens President and CEO Bruce Van Saun described the deal as a “springboard“ for national expansion plans.
The value of the deal was not disclosed. The transaction is expected to close in the first quarter of 2022, at which time the HSBC branches will be rebranded as Citizens locations.
HSBC also announced plans to sell its West Coast banking business, which includes 10 branches, to California-based Cathay General Bancorp.
Citizens Financial Group reported $187.2 billion in assets as of the end of the first quarter and more than 1,000 branches across 11 states.
