Net income from continuing operations attributable to common shareholders at KeyCorp (NYSE: KEY) totaled $199 million, or 21 cents per share, in the first quarter. That’s up from $184 million, or 21 cents per share, in the first quarter of 2011. Key, based in Cleveland, has more than 1,000 branches in 14 states and assets […]
Net income from continuing operations attributable to common shareholders at KeyCorp (NYSE: KEY) totaled $199 million, or 21 cents per share, in the first quarter.
That’s up from $184 million, or 21 cents per share, in the first quarter of 2011.
Key, based in Cleveland, has more than 1,000 branches in 14 states and assets of more than $87 billion.
KeyBank is number two in the Syracuse–area deposit market with 28 branch offices, more than $1.7 billion in deposits, and a market share of more than 16 percent. In the Utica–Rome area, Key has two branches, more than $64.4 million in deposits, and a deposit market share of more than 1.7 percent, according to the latest statistics from the Federal Deposit Insurance Corp.
The bank was encouraged during the quarter to see growth in its portfolio of commercial, financial, and agricultural loans, Chairwoman and CEO Beth Mooney said during a conference call April 19 on the company’s first-quarter results. Average balances in that category rose to $19.6 billion from $18.3 billion in the fourth quarter and $16.3 billion in the first quarter last year.
Key originated about $8.3 billion in new or renewed loans to consumers and businesses during the first quarter, up from
$6.9 billion a year earlier. Average total loans increased to $49.4 billion, up from $48.7 billion in the fourth quarter and
$49.3 billion in the first quarter of 2011.
Some specific industry segments including health care, industrial lending, and energy will drive continued growth, said Christopher Gorman, president of Key Corporate Bank. In the first quarter, Key was a lead participant in deals for wind and solar projects that raised more than $1 billion.
On the community-banking side, the lending pipeline remains strong in the Northeast and Great Lakes regions, said William Koehler, president of Key Community Bank. Manufacturing and health care are strong categories in the community bank as well, he added.
Key remains on track to close on an acquisition of 37 HSBC branches in the Buffalo and Rochester markets later this year, Mooney said.
The locations are among those involved in First Niagara Bank’s planned acquisition of HSBC’s upstate New York branch network. First Niagara agreed to sell 26 of the branches located in Erie, Niagara, and Orleans counties as part of an agreement with the Justice Department in November.
The remaining 11 offices are located in Monroe County.
The new branches will give Key $2.4 billion in new deposits and loans of about $400 million. Key is paying a deposit premium of 4.6 percent. First Niagara sold additional branches to Community Bank System and Five Star Bank as well.
Also during the first quarter, Key’s board approved a common-stock-repurchase program of up to $344 million. The board plans to explore an increase of Key’s dividend at its meeting in May, Mooney said.
Key’s net interest income for the first quarter was $559 million, down from $604 million a year earlier. Noninterest income rose to $472 million from $457 million in last year’s first quarter.
Deposits at the end of the period totaled $61.5 billion, up from $60.8 billion at the end of the first quarter in 2011.
Noninterest expenses totaled $703 million in the first quarter, up slightly from $701 million in the same period last year.
