KeyCorp (NYSE: KEY) — parent of KeyBank, which ranks No. 2 in deposit market share in the 16-county Central New York region — recently reported that its net income from continuing operations fell 4 percent in the first quarter to $386 million from $402 million in the year-ago period.

Key’s earnings per share (EPS) was unchanged at 38 cents in the quarter. Its results included 2 cents per share for efficiency-initiative expenses, according to its April 18 earnings report. Adjusting for those charges, Key reported EPS of 40 cents. That missed the consensus analysts’ estimate of 42 cents, according to Zacks Equity Research.

The Cleveland, Ohio–based banking company posted total revenue of $1.52 billion in the first quarter, down 2.1 percent from a year earlier. Net interest income grew 3.5 percent to $985 million in the latest quarter from $952 million a year prior. Noninterest income fell 10.8 percent to $536 million from $601 million.

“Our results this quarter reflect solid underlying trends in our core businesses, strong expense management and continued strength in credit quality. Revenue benefitted from continued balance sheet growth, including an 8 percent increase in commercial and industrial loans from the same period last year, and a 5 percent increase in average deposits. Fee income this quarter declined, primarily due to lower capital-markets income, driven by both seasonality and the timing in closing certain transactions,” Beth Mooney, Key’s chairman, CEO, and president, said in the earnings report. “We continued to execute against our continuous improvement plans across the company, driving a meaningful reduction in our expenses, down 7 percent, excluding notable items, from the year-ago period. Importantly, we remain confident in reaching our targeted cash efficiency ratio of 54 percent to 56 percent in the second half of 2019.”

Key posted noninterest expense of $963 million in the first quarter of 2019, compared to $1 billion in the year-ago period. The decline largely resulted from Key’s efficiency-initiative efforts across the company. Labor expenses declined $31 million compared to the year-ago period, driven by lower salary expenses, incentive compensation, and employee-benefits costs, the earnings report stated. That was partially offset by higher severance expense related to efficiency-initiative actions taken during the quarter. 

Key had average loans of $89.6 billion in the first quarter, up $2.7 billion from the first quarter of 2018, reflecting “broad-based growth in commercial and industrial loans and growth in indirect auto lending, partially offset by continued paydowns in home equity lines of credit,” the banking company said.

“The primary driver of loan growth was commercial and industrial loans with average balances up 8 percent versus the year ago period,” Mooney said on an April 18 conference calls with analysts, discussing the banking company’s earnings.

Capital plans

On the same day as its earnings report, KeyCorp also announced its capital plans for the period starting with the third quarter of 2019, extending one year out. The plans include a common-share repurchase program of up to $1 billion, as well as a 9 percent increase in the banking company’s common-share dividend, from 17 cents to 18.5 cents a common share in the third quarter, subject to board approval. “Our strong capital position supports both our organic growth as well as our planned capital actions,” Mooney said on the conference call.

KeyCorp’s roots trace back 190 years to Albany, New York. Key is one of the nation’s largest bank-based financial-services companies, with assets of about $141.5 billion, as of March 31. The banking company provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank through a network of more than 1,100 branches. It operates several dozen branches in Central New York.

SYRACUSE — Syracuse’s proposal in JPMorgan Chase & Co.’s (NYSE: JPM) AdvancingCities Challenge builds on the “Syracuse Surge,” which Syracuse Mayor Ben Walsh outlined in this year’s State of the City address.

In his remarks on Jan. 20, Walsh called it “probably the biggest economic growth initiative ever put forth by the City of Syracuse,” noting his administration has been working with partners in government, business, and the nonprofit community to make it happen. 

JPMorgan Chase on April 18 awarded Syracuse $3 million as part of the AdvancingCities Challenge. The funding seeks to help local officials connect “talent from vulnerable populations” to jobs in high-tech industries.

JPMorgan selected Syracuse because its proposal outlined local coalitions of elected, business, and nonprofit leaders working together to address major social and economic challenges such as employment barriers, financial insecurity, and neighborhood disinvestment.

“I would say that the issues of socio-economic disparity and racial disparity in our economy are arguably the defining social and economic issue of our time. We have partners … that are committed to making a difference in driving, not just better intentions, but better outcomes for our community,” Robert Simpson, president and CEO of CenterState CEO, said in his remarks at the announcement. 

JPMorgan said CenterState CEO will work with the City of Syracuse, Onondaga County, Syracuse University, Le Moyne College, and the Allyn Family Foundation on the initiative with the AdvancingCities funding. 

As part of this program, the partners will work with local nonprofits and businesses to develop long-term strategies to connect “talent from vulnerable populations” to jobs in high-tech industries, while also attracting, expanding, and incubating tech businesses led by diverse founders.

Thelma Ferguson, JPMorgan’s head of Northeast middle market, announced the award during the ceremony at the Syracuse Educational Opportunity Center (SUNY EOC) at 100 New St. 

“The partners here today exhibit true potential to move the needle for Syracuse’s most underserved neighborhoods,” said Ferguson. “Syracuse’s historically disinvested Southern downtown district and South Side neighborhoods are poised to receive major public and private-technology investments. And that’s great. However … without specific interventions, long-time residents and businesses may not benefit from this prosperity. Through Syracuse Surge, the City and County have demonstrated a clear commitment to equitable growth shared among the business community, local nonprofits, and anchor and educational institutions.”

Besides Syracuse, JPMorgan also announced $3 million awards for Chicago, Illinois; Louisville, Kentucky; Miami, Florida; and San Diego, California.

JPMorgan launched the AdvancingCities Challenge back in September, attracting more than 250 proposals from 143 communities across 45 states and territories. Proposals were required to incorporate at least two of four strategic drivers of inclusive growth within JPMorgan Chase’s Model for Impact: jobs and skills, small business, neighborhood revitalization, and financial health.