Acquisition of Marine Midland and Republic Bank
In 1980, HSBC acquired a 51% controlling interest in Marine Midland Bank, headquartered in Buffalo, New York. The bank's roots had dated to 1850. HSBC acquired the remaining interest in 1987.[3]
In 1994, Marine Midland acquired Spectrum Home Mortgage, which operated in eight states. In 1995, Marine Midland acquired United Northern Federal Savings Bank, with branches in Watertown and Lowville, New York. Marine Midland also acquired The HSBC's 6 New York City retail branches, and the next year Hang Seng Bank's two branches in New York City.
That same year, Marine Midland acquired 11 branches from the East River Savings Bank in the New York Metropolitan area. Marine also acquired the US dollar clearing business of JPMorgan Chase. At the same time, HSBC transferred 2 branches in the northwestern United States to HSBC Bank Canada. The next year, Marine completed its acquisition of First Federal Savings and Loan from Toronto-based Canada Trust, for $620 million. First Federal Savings, headquartered in Rochester, had $7.2 billion in assets, 1,600 employees, 79 retail branches in the State of New York and 15 mortgage origination offices in 9 states.
In 1998, Marine Midland acquired First Commercial Bank of Philadelphia, which had $90 million in assets and $78 million in deposits in two branches and focused on the Asian-American community, for $23.75 million.[4]
In 1999, the company acquired Republic New York for $10.3 billion and moved its head office from One HSBC Center in Buffalo to what is now the HSBC Tower on Fifth Avenue.[5][6]
As part of the global rebranding campaign, HSBC Americas (formerly Marine Midland) was rebranded into HSBC Bank USA in June 1999.
21st century
In 2004, HSBC USA sold two upstate New York branches to Gloversville-based City National Bank & Trust Co.[7] HSBC did not have enough nearby branches to give it economies of scale.
In July 2011, the company sold its 195 branches in upstate New York to First Niagara Financial Group for $1 billion, effectively selling-off the core of the old Marine Midland Bank.[8][9]
In 2015, the company paid $30 million to settle a lawsuit regarding overdraft fees.[10]
In 2016, the Office of the Comptroller of the Currency imposed a $35 million fine on the company for deceptive billing practices.[11]
