Key’s Mooney wants the bank to be number one in Syracuse

SYRACUSE — The CEO of KeyCorp (NYSE: KEY), parent of KeyBank, says it is now the “second largest bank in Syracuse” after the 2016 acquisition of First Niagara, describing it as “significant growth.”

In the banking industry, Beth Mooney says, when a bank has more market share, more branches, more deposits, and more customers, it becomes a “stronger corporate citizen” with more to offer consumers and businesses.

“To me, it’s a real important thing for this community that Key has grown to be the number-two bank and I’d like to challenge the team to think about the path to number one,” says Mooney, who spoke with CNYBJ at the Marriott Syracuse Downtown, the former Hotel Syracuse, on Oct. 25. She was the keynote speaker at a Key4Women event held at the hotel. 

The latest data from the FDIC shows KeyBank has a ways to go to reach number one in this market in one important measure. Key had nearly $2.4 billion in deposits, good for an 18.58 percent share of total deposits in the Syracuse metro area, as of June 30. That trailed No. 1 M&T, which had more than $3.15 billion in deposits and a 24.56 percent market share. The two banking companies are tied for most branch offices in the market with 30, per the FDIC data.

Financial performance

Overall, the financial figures indicate Key is already significantly benefiting from its $4.1 billion acquisition of Buffalo–based First Niagara Financial Group (NASDAQ: FNFG).

The Cleveland, Ohio–based KeyCorp, on Oct. 19 reported net income of $349 million, or 32 cents per share, compared to $165 million, or 16 cents a share a year ago

A “significant” portion of Key’s year-over-year financial performance “does indeed” reflect the First Niagara acquisition, says Mooney. The acquisition closed July 29, 2016.

“A year later, we are realizing the value of what was our investor proposition when we did First Niagara, and you are indeed seeing it in things such as the increase in our net income,” says Mooney. Key’s revenue is also growing — increasing more than 16 percent in the latest quarter compared to a year ago.

KeyCorp pursued the acquisition with First Niagara Financial Group because of geographic overlaps, “similar cultures,” and “complementary” products and businesses.

The banking company had argued that, financially, it “would enhance the performance of KeyCorp in a way that neither First Niagara [nor] KeyBank would’ve been able to do on their own,” says Mooney.

Key’s third-quarter results included 

$36 million of merger-related charges and a $5 million merchant-services gain adjustment, resulting in a pre-tax net impact of 

$41 million, or 3 cents per common share.

Mooney had spent time in Buffalo on Oct. 24, the day before the Syracuse visit, and she says what makes her the “proudest” is “seeing how our teams have come together and how … one year later, we’re one company.”

“So, we’re about the business of serving our customers and our communities and growing the bank,” she says.

When asked if KeyBank has plans for any additional branch consolidation in the Syracuse or Central New York area following the acquisition, Stephen Fournier, KeyBank’s president of the Central New York market, says, “Like any banking organization … [we] look at our business on an annual basis to see … what’s the best way to operate … We look at that yearly.”

“Ongoing, we always look at opportunities for how and where we do business, investing in digital … I don’t think any of it’s specifically related to the merger at this point,” Mooney adds. 

SYRACUSE — The CEO of KeyCorp (NYSE: KEY), parent of KeyBank, says it is now the “second largest bank in Syracuse” after the 2016 acquisition of First Niagara, describing it as “significant growth.”

In the banking industry, Beth Mooney says, when a bank has more market share, more branches, more deposits, and more customers, it becomes a “stronger corporate citizen” with more to offer consumers and businesses.

“To me, it’s a real important thing for this community that Key has grown to be the number-two bank and I’d like to challenge the team to think about the path to number one,” says Mooney, who spoke with CNYBJ at the Marriott Syracuse Downtown, the former Hotel Syracuse, on Oct. 25. She was the keynote speaker at a Key4Women event held at the hotel. 

The latest data from the FDIC shows KeyBank has a ways to go to reach number one in this market in one important measure. Key had nearly $2.4 billion in deposits, good for an 18.58 percent share of total deposits in the Syracuse metro area, as of June 30. That trailed No. 1 M&T, which had more than $3.15 billion in deposits and a 24.56 percent market share. The two banking companies are tied for most branch offices in the market with 30, per the FDIC data.

Financial performance

Overall, the financial figures indicate Key is already significantly benefiting from its $4.1 billion acquisition of Buffalo–based First Niagara Financial Group (NASDAQ: FNFG).

The Cleveland, Ohio–based KeyCorp, on Oct. 19 reported net income of $349 million, or 32 cents per share, compared to $165 million, or 16 cents a share a year ago

A “significant” portion of Key’s year-over-year financial performance “does indeed” reflect the First Niagara acquisition, says Mooney. The acquisition closed July 29, 2016.

“A year later, we are realizing the value of what was our investor proposition when we did First Niagara, and you are indeed seeing it in things such as the increase in our net income,” says Mooney. Key’s revenue is also growing — increasing more than 16 percent in the latest quarter compared to a year ago.

KeyCorp pursued the acquisition with First Niagara Financial Group because of geographic overlaps, “similar cultures,” and “complementary” products and businesses.

The banking company had argued that, financially, it “would enhance the performance of KeyCorp in a way that neither First Niagara [nor] KeyBank would’ve been able to do on their own,” says Mooney.

Key’s third-quarter results included 

$36 million of merger-related charges and a $5 million merchant-services gain adjustment, resulting in a pre-tax net impact of 

$41 million, or 3 cents per common share.

Mooney had spent time in Buffalo on Oct. 24, the day before the Syracuse visit, and she says what makes her the “proudest” is “seeing how our teams have come together and how … one year later, we’re one company.”

“So, we’re about the business of serving our customers and our communities and growing the bank,” she says.

When asked if KeyBank has plans for any additional branch consolidation in the Syracuse or Central New York area following the acquisition, Stephen Fournier, KeyBank’s president of the Central New York market, says, “Like any banking organization … [we] look at our business on an annual basis to see … what’s the best way to operate … We look at that yearly.”

“Ongoing, we always look at opportunities for how and where we do business, investing in digital … I don’t think any of it’s specifically related to the merger at this point,” Mooney adds.