Community Bank System to Close Five Branches in N.Y.

Community Bank System (CBU) in DeWitt, N.Y., will close five branches in September.

Three of the targeted branches are ones that First Niagara Financial Group (FNFG) acquired from HSBC Holdings (HBC) and then sold to the $7.1 billion-asset Community Bank in July, the Post-Standard reported Wednesday.

Another branch marked for closure is a First Niagara branch that Community will take over in September when its separate agreement to buy three First Niagara branches is completed. The last branch to be shuttered is one that had belonged to Community Bank System, the Post-Standard reported.

There will be no layoffs from the closures, the Post-Standard reported.

In May First Niagara completed its acquisition of 195 branches in New York and Connecticut from HSBC. However, the Buffalo company had been ordered by the Justice Department to sell 26 branches because of antitrust concerns.

First Niagara struck deals to sell 37 branches to KeyCorp (KEY) in Cleveland, eight to Financial Institutions in Warsaw, N.Y., and 19 to Community Bank System.