CLEVELAND, July 11, 2016 /PRNewswire/ -- KeyCorp (NYSE:
KEY) today announced it will add 304 First Niagara (NASDAQ: FNFG)
branches to its new network after the companies' planned merger is
complete. As part of today's announcement, KeyBank released details
about its expanded branch network, including planned consolidations
of existing First Niagara and Key branches.
KeyCorp also reaffirmed an ongoing and constructive dialogue
with Senator Charles Schumer (D, NY)
and Congressman Brian Higgins (D,
NY), which includes a commitment to ensure that all First Niagara
and KeyBank employees in consolidated branches will be offered
roles with KeyBank.
KeyBank's plan includes a focus on enhancing convenience and
capabilities for clients while creating a more efficient branch
network.
- The new KeyBank branch network created by the merger will
include 488 branches in upstate New
York and in Connecticut,
Massachusetts and Pennsylvania.
- The expanded network will include 304 First Niagara branches in
New York, Connecticut, Massachusetts and Pennsylvania, which will become KeyBank
branches between October and early 2017, and 184 New York
state-based KeyBank branches.
- KeyBank will also offer clients an expanded ATM network of 683
branch-based and remote ATMs located in New York, Connecticut, Massachusetts and Pennsylvania. KeyBank clients will continue to
have access to surcharge-free ATMs located in 593 RiteAid
pharmacies throughout New
York.
- By joining forces with First Niagara, KeyBank will have a
network of more than 1,200 branches and more than 1,500 ATMS
located in 15 states.
- Key will consolidate 70 First Niagara and 36 KeyBank branches
into existing branches. In most cases, the receiving branch is
located less than one mile away from the consolidating branch.
- The branch consolidations will start in 2016 and continue
through early 2017. This includes 70 branches that are scheduled to
be consolidated in October 2016.
KeyBank is currently notifying clients of these branches about the
consolidations.
- Clients of branches scheduled to consolidate later in 2016 and
in early 2017 will be notified prior to consolidation.
- KeyBank confirmed that all First Niagara and KeyBank branch
employees have been offered roles with the new KeyBank as well as
plans to reach pre-merger employment levels by 2021 consistent with
expectations for business growth and investment.
KeyBank's merger with First Niagara is subject to receipt of
regulatory approvals and satisfaction of other customary closing
conditions. The merger is on track to be complete by the third
quarter of 2016.
Statements By Beth Mooney,
Chairman and CEO, KeyCorp
"The new KeyBank branch network will be one way we offer clients
more capabilities and more convenient access to banking services.
We look forward to welcoming our new colleagues and clients to
KeyBank."
"I am confirming that Buffalo,
NY, is our Northeast regional headquarters and that Key will
invest and grow in New York,
including our plans to expand our mortgage, auto lending and
insurance businesses. In fact, we plan to reach pre-merger
employment levels by 2021 consistent with expectations for business
growth and investment."
"I'd like to thank Senator Charles
Schumer (D, NY) and Representative Brian Higgins (D, NY) for their help and support
in making this a strong plan for our employees and for the
New York communities that will be
part of the new KeyBank. Their influence, direction and input
sharpened our focus and enhanced our commitments."
"Today marks another milestone in KeyBank's merger with First
Niagara. Helping our clients and communities thrive is central to
all we do, as is serving our shareholders. And to that point, we
remain confident in and committed to meeting the growth and
financial objectives of the First Niagara acquisition."
About KeyCorp
KeyCorp was organized more than 160 years ago and is
headquartered in Cleveland, Ohio.
One of the nation's largest bank-based financial services
companies, Key had assets of approximately $98.4 billion at
March 31, 2016. Key provides deposit,
lending, cash management and investment services to individuals and
small and mid-sized businesses in 12 states under the name KeyBank
National Association. 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.
Forward-Looking Statements
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
including, but not limited to, KeyCorp's and First Niagara's
expectations or predictions of future financial or business
performance or conditions. Forward-looking statements are typically
identified by words such as "believe," "expect," "anticipate,"
"intend," "target," "estimate," "continue," "positions," "plan,"
"predict," "project," "forecast," "guidance," "goal," "objective,"
"prospects," "possible" or "potential," by future conditional verbs
such as "assume," "will," "would," "should," "could" or "may", or
by variations of such words or by similar expressions. These
forward-looking statements are subject to numerous assumptions,
risks and uncertainties, which change over time. Forward-looking
statements speak only as of the date they are made and KeyCorp and
First Niagara assume no duty to update forward-looking statements.
Actual results may differ materially from current projections.
In addition to factors previously disclosed in KeyCorp's and
First Niagara's reports filed with the SEC and those identified
elsewhere in this communication, the following factors, among
others, could cause actual results to differ materially from
forward-looking statements or historical performance: ability to
obtain regulatory approvals and meet other closing conditions to
the merger, including the risk that regulatory approvals required
for the merger are not obtained or are obtained subject to
conditions that are not anticipated; delay in closing the merger;
difficulties and delays in integrating the First Niagara business
or fully realizing cost savings and other benefits; business
disruption following the merger; changes in asset quality and
credit risk; the inability to sustain revenue and earnings growth;
changes in interest rates and capital markets; inflation; customer
acceptance of KeyCorp's products and services; customer borrowing,
repayment, investment and deposit practices; customer
disintermediation; the introduction, withdrawal, success and timing
of business initiatives; competitive conditions; the inability to
realize cost savings or revenues or to implement integration plans
and other consequences associated with mergers, acquisitions and
divestitures; economic conditions; and the impact, extent and
timing of technological changes, capital management activities, and
other actions of the Federal Reserve Board and legislative and
regulatory actions and reforms.
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SOURCE KeyCorp