Profit slips at Key

Net income from continuing operations attributable to common shareholders at KeyCorp (NYSE: KEY) totaled $214 million in the third quarter, down from $229 million a year earlier.

Earnings per share totaled 23 cents, down from 24 cents a year earlier.

Key, based in Cleveland, announced a number of actions during the third quarter, including re-entering the credit card business and repositioning its merchant services and debit card processing. The bank also completed an acquisition of 37 former HSBC branches in Western New York.

“Our third quarter results reflect the impact of these actions and underscore the company’s sustained drive to increase revenue and reduce costs,” Key Chairwoman and CEO Beth Mooney said in a news release. “Revenue trends benefited from the acquisitions, higher net interest margin due to lower funding costs, and the fourth consecutive quarter of average loan growth, primarily in our commercial, financial and agricultural portfolio.

“On the cost side, we made progress on our efficiency initiative goal and remain on track to capture $150 million to $200 million annual expense reductions by December 2013.”

Key is the number two bank in the Syracuse metro area deposit market with 27 branches, more than $1.8 billion in deposits, and a market share of 16.8 percent, according to the latest statistics from the Federal Deposit Insurance Corp. The bank has two branches, more than $58 million in deposits, and a market share of 1.58 percent in the Utica-Rome area.

Contact Tampone at ktampone@cnybj.com