CLEVELAND, Jan. 16, 2019 /PRNewswire/ -- KeyBank
National Association today announced that KeyBank and Laurel Road
Bank have entered into a definitive agreement for the acquisition
by Key of Laurel Road's digital lending business; Laurel Road's
three bank branches located in southeast Connecticut are not part of this transaction.
Through the acquisition, Key will enhance its digital capabilities
with state-of-the-art, customer-centric technology and will
leverage Laurel Road's proven ability to attract and serve
professional millennial clients.
Laurel Road, based in New York
City, has built a best-in-class student loan refinancing
platform, which launched in 2013 and has grown rapidly, totaling
more than $4 billion in loan
originations to date. The end-to-end consumer lending platform
offers a streamlined, transparent experience with customized loan
products. In 2018, the company introduced an innovative platform
for mortgages using the same secure lending technology to offer
home buyers and owners a streamlined experience, from application
to payment. Laurel Road has leveraged its differentiated
technology to earn a strong reputation for providing high-quality
customer experiences and solutions to targeted customer segments –
such as healthcare professionals, lawyers and graduate
students.
In addition to its advanced technology and distinctive client
experience, Laurel Road has created a broad network of affinity
partners through which it is a preferred provider of its
products. This expansive platform includes partners across
trade associations, member groups, and employers and aligns closely
with Key's approach to strategic partnerships.
"We are thrilled to have the opportunity to partner with Laurel
Road and to continue expanding their business," said Vice Chair and
President of Banking, Chris
Gorman. "As we shared at our Investor Day in October,
Key is focused on building targeted scale against discrete client
segments through distinctive platforms. Laurel Road's model
of focusing on advanced degree professionals is not only consistent
with Key's approach but also complements our focus on specific
sectors more broadly. We have invested significant resources
in building our own strategic partnerships with fintech companies
and we have yet to encounter a firm that so clearly matches our
business and cultural approach to serving clients."
"We are excited to combine our technological expertise with
Key's industry expertise," said Gary
Lieberman, Founder and Chairman of Laurel Road Bank. "We
could not have found a better strategic partner to help take Laurel
Road to the next level and continue our mission of serving
millennial customers with technology that meets them where they are
in their financial journey. Together, we will work to create an
innovative digital financial experience for all of our customer
segments."
In addition to the technology and business platform, Key is
eager to onboard the Laurel Road team. "The management team at
Laurel Road is truly outstanding," said Gorman. "While
operating within a bank regulatory environment, Laurel Road has
been an innovator in online lending and experienced significant
growth, a remarkable accomplishment under Gary's
leadership." With the integration, approximately 140 Laurel
Road employees will join Key. The employee teams will continue to
be based in New York, Connecticut, and California.
The acquisition is subject to customary closing conditions,
including regulatory approvals. Financial terms of the transaction
have not been disclosed. KeyCorp was advised by Debevoise
& Plimpton LLP. Laurel Road Bank was advised by RBC
Capital Markets and Fried Frank.
About KeyCorp
KeyCorp's (NYSE: KEY) roots
trace back 190 years to Albany, New
York. Headquartered in Cleveland,
Ohio, Key is one of the nation's largest bank-based
financial services companies, with assets of
approximately $138.8 billion at September 30, 2018. Key
provides deposit, lending, cash management, and investment services
to individuals and businesses in 15 states under the name KeyBank
National Association through a network of over 1,100 branches and
more than 1,500 ATMs. Key also provides a broad range of
sophisticated corporate and investment banking products, such as
merger and acquisition advice, public and private debt and equity,
syndications and derivatives to middle market companies in selected
industries throughout the United
States under the KeyBanc Capital Markets trade name. For
more information, visit https://www.key.com/. KeyBank is Member
FDIC.
About Laurel Road
Laurel Road is a national online
lending company and FDIC-insured bank, offering online student loan
refinancing, personal lending and mortgage products as well as
consumer and commercial banking services. Laurel Road began
originating student loans in 2013 and has since helped thousands of
professionals with graduate and undergraduate degrees to refinance
and consolidate more than $4 billion
in federal and private school loans. With our low rates, borrowers
have reduced their monthly payments and on average saved tens of
thousands of dollars. For more information on potential savings,
see laurelroad.com/student. Laurel Road Bank is a Connecticut chartered bank offering lending
products in all 50 U.S. states, Washington, D.C. and Puerto Rico. The mortgage product is not
offered in Puerto Rico. Laurel
Road Bank is an Equal Housing Lender, Member FDIC. NMLS ID #
402942.
Forward-Looking Statements
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by words such as
"outlook," "goal," "objective," "plan," "expect," "anticipate,"
"intend," "project," "believe," "estimate" and other words of
similar meaning. Forward-looking statements represent management's
current expectations and forecasts regarding future events. If
underlying assumptions prove to be inaccurate or unknown risks or
uncertainties arise, actual results could vary materially from
these projections or expectations. Factors that could cause Key's
actual results to differ from those described in the
forward-looking statements can be found in KeyCorp's Form 10-K for
the year ended December 31, 2017, as
well as in KeyCorp's subsequent SEC filings, all of which have been
filed with the Securities and Exchange Commission and are available
on Key's website (www.key.com/ir) and on the Securities and
Exchange Commission's website (www.sec.gov). Forward looking
statements speak only as of the date they are made and Key does not
undertake any obligation to update the forward-looking statements
to reflect new information or future events.
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SOURCE KeyCorp