{"id":1004130588,"date":"2015-11-02T07:09:00","date_gmt":"2015-11-02T15:09:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004130588"},"modified":"2021-05-14T20:04:44","modified_gmt":"2021-05-15T04:04:44","slug":"keycorp-increases-banking-portfolio-in-4-1b-transaction","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/keycorp-increases-banking-portfolio-in-4-1b-transaction\/","title":{"rendered":"KeyCorp Grows Banking Portfolio in $4.1B Transaction"},"content":{"rendered":"<p><em>By Keith Loria, Contributing Editor<\/em><\/p>\n<p><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/11\/first-niagara-key-corp-merger.png\"><img decoding=\"async\" data-attachment-id=\"1004130592\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/keycorp-increases-banking-portfolio-in-4-1b-transaction\/first-niagara-key-corp-merger\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/11\/first-niagara-key-corp-merger.png\" data-orig-size=\"620,349\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"first-niagara-key-corp-merger\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/11\/first-niagara-key-corp-merger.png?w=620\" loading=\"lazy\" class=\"alignright size-medium wp-image-1004130592\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/11\/first-niagara-key-corp-merger.png\" alt=\"first-niagara-key-corp-merger\" width=\"300\" height=\"169\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/11\/first-niagara-key-corp-merger.png 620w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/11\/first-niagara-key-corp-merger.png?resize=300,169 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><a href=\"https:\/\/www.key.com\/\" target=\"_blank\" rel=\"nofollow noopener\">KeyCorp<\/a> will acquire First Niagara in a cash and stock transaction valued at approximately $4.1 billion, making the parent of KeyBank the 13th largest bank in the U.S.<\/p>\n<p>A spokesperson for\u00a0KeyBank Real Estate Capital told CPE that the pairing of\u00a0KeyBank and First Niagara are a powerful combination.<\/p>\n<p>&#8220;We\u2019ve known and respected each other for decades and now we are joining forces to become one of the largest commercial banks in the U.S.,&#8221; he said. &#8221; Our organizations believe that employees are our greatest asset and the source of our strength.\u00a0 And, we are excited to bring together teams that share the same focus on clients and a passion for delivering the right banking solution.&#8221;<\/p>\n<p>The deal includes $39 billion in assets and $29 billion in deposits and 394\u00a0branches\u00a0in New York, Pennsylvania, Connecticut and Massachusetts, making KeyCorp a leading bank in Upstate New York, with a strong market presence in Buffalo, Albany, Syracuse and Rochester.<\/p>\n<p>\u201cKey and First Niagara are a powerful combination, driven by a shared commitment to the clients and to the communities we serve,\u201d Beth Mooney, KeyCorp\u2019s chairman &amp; CEO, said in a prepared statement. \u201cThis transformational opportunity will bring compelling and complementary capabilities to our shared three-million clients, while driving meaningful synergies and enhancing shareholder value.\u201d<\/p>\n<p>The acquisition enables KeyCorp to now serve three million clients across diverse markets in the Northeast, Mid-Atlantic, Midwest and Pacific Northwest.\u00a0Overall, KeyCorp now has nearly $135 billion in assets.<\/p>\n<p>It also diversifies KeyCorp\u2019s loan portfolio, strengthens its core retail deposit franchise and provides expanded scale.\u00a0Once the sale is finalized, the company will have $99.8 billion in deposits, $83.6 billion in loans and 1,366 branches across 15 states.<\/p>\n<p>\u201cI am confident that the combination of First Niagara and Key will benefit our shareholders, customers and the communities we serve and will build off the great progress that the First Niagara team has made,\u201d Nathaniel D. Woodson, First Niagara\u2019s chairman of the board of directors, said in a prepared statement. \u201cWe believe that this partnership provides significant value for our shareholders and allows them to participate in the upside potential of the combined Key and First Niagara.\u201d<\/p>\n<p>According to Mooney, First Niagara has strengths that Key doesn\u2019t, such as being advanced with offering and underwriting first mortgages, and it has an insurance brokerage, which Key doesn\u2019t.<\/p>\n<p>\u201cThe acquisition of First Niagara by Key Bank continues the consolidation of financing opportunities for commercial property owners and developers.\u00a0While Senator Schumer is reportedly concerned about the inevitable job losses due to the synergies of the merger, the significant impact will be determined by Key Bank\u2019s strategy,\u201d Richard Morris, a banking partner at Herrick, Feinstein LLP, told <em>Commercial Property Executive<\/em>. \u201cIf Key Bank will continue the First Niagara lending policies and strategies, then the merger will have a positive impact as a bank with more capital should lead to more lending in the New York market.\u00a0However, if Key Bank\u2019s credit policies are not in line with First Niagara\u2019s current customer\/borrower profile, then the commercial property owners and developers will need to quickly find an acceptable alternative.\u201d<\/p>\n<p>KeyCorp expects the acquisition to be accretive to earnings per share in 2017, excluding one-time charges, and expects the transaction to deliver an attractive Internal Rate of Return of approximately 15 percent.<\/p>\n<p><em>Picture courtesy of Buffalo News.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>KeyCorp will acquire First Niagara in a cash and stock transaction valued at approximately $4.1 billion, making the parent of KeyBank the 13th largest bank in the U.S.<\/p>\n","protected":false},"author":451,"featured_media":1004130592,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21781,23891,21742,21747],"tags":[],"class_list":["post-1004130588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-real-estate","category-national","category-latest","category-office"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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