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KeyBank

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899:, he wanted to vault the bank into the big leagues. He concluded Key, a bank with similar ambitions, was a suitable partner. Society and Key held talks in 1990 at Gillespie's prompting, but Riley decided to stay the course of smaller, more lucrative acquisitions with obvious synergies. Yet, news reports swirled that a possible merger was in the works in the fall of 1993. Key was the 29th largest U.S. bank with $ 26 billion in assets, while Society was the 25th largest with $ 32 billion in assets. Both needed a merger to improve their prospects. For its part, Key needed a succession plan due to the lack of an obvious successor to the 62-year-old Riley. In one week in June 1993, the bench had become barren – Chief Banking Officer James Waterston, hired the year before, quit and publicly stated that he was frustrated with the pace of achieving his goal of running a large bank. The head of KeyBank of Washington, Hans Harjo, was pushed out over an apparent dispute to move its headquarters from 545: 655: 1332: 1316: 680: 666: 695: 79: 646:, KeyBank was formed from the 1994 merger of the Cleveland-based Society Corporation, which operated Society National Bank, and the Albany-headquartered KeyCorp. The company today operates over 1,000 branches and 40,000 ATMs, mostly concentrated in the Midwest and Northeast United States, though also operates in the Pacific Northwest as well as in Alaska, Colorado, Texas and Utah. 181: 38: 283: 596: 579: 562: 526: 274: 870:
rocked many banks, Key had ample capital. It bought the assets of two failed thrifts from the government: Empire Federal Savings and Loan and Goldome Savings Bank. In March 1992, it acquired Tacoma-based Puget Sound Bancorp for $ 807.2 million (~$ 1.57 billion in 2023) to bolster its presence in
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began looking askance at New York-based banks controlling the region's capital. That, coupled with increasing competition for acquisition targets, caused Riley to essentially abandon the Northeast. Instead, he began searching for prey in the Pacific Northwest. Riley found a target-rich environment in
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The result was two separate banking networks united under a single corporate umbrella. However, this strategy actually worked well for Key. Not only was it insulated from regional economic downturns, but it avoided bad loans by lending primarily to customers in the areas it served. When Key acquired
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Society and Key completed the merger on March 1, 1994, after regulatory approval. Although it was touted as a merger of equals, Key and Society were an odd couple. As mentioned above, Key was a decentralized community bank combining two banking networks—an eastern network in New England and upstate
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home after breaking his hip in a horse-riding accident in Wyoming. The two quickly sketched out the deal. The banks were roughly the same size in assets and had very little geographic overlap, so it was touted as an out-of-market merger in which few branches needed to be sold off. It created a $ 58
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signed a bill chartering the Commercial Bank of Albany. In 1865, Commercial Bank was reorganized under the National Banking Act of 1864, and changed its name to National Commercial Bank of Albany. Over a hundred years passed before National Commercial merged with First Trust and Deposit of Syracuse
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in 1986. In 1987, Society CEO Gordon E. Heffern retired and was succeeded by Robert W. Gillespie, who, although just 42, was a major figure and part of the office of the chairman for more than 5 years. Gillespie was also named chairman. Gillespie started as a teller with Society to earn money while
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at the time, the bank largely eschewed expansion. That aspect is highlighted by the fact that when it celebrated its 100th anniversary in 1949, it still only had one office although it had over $ 200 million (~$ 2.03 billion in 2023) in deposits. This conservatism helped the bank sidestep many
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However, investors became wary of all the Gillespie-era deals. Some believed that Gillespie was making all the moves to cover up poor performance, although in hindsight that appears to be far from the truth. The concept was dubbed "burning the furniture", implying that Key would sell an asset to
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The deal was structured as a merger of equals. The merged bank took the KeyCorp name, and operates under the charter of the old KeyCorp. However, Society was the nominal survivor; the merged bank was headquartered in Cleveland and retains Society's pre-1994 stock price history. The Society name
939:. Furthermore, the deal plugged many of the perceived holes for both partners. The soft-spoken Gillespie was just 49 and Society had cultivated a deep bench of lieutenants. More importantly, Society had the computer systems and technology expertise to combine the two banks, along with 974:
Riley planned to retire as CEO at the end of 1995. He decided to accelerate it by four months, however, instead stepping down on September 1, 1995. Gillespie took the helm as CEO and later chairman, allowing his protege Henry Meyer to become COO and later president.
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openly fretted that the merger would be bad for the state capital since Key and its subsidiaries owned or leased more than 10% of Albany's commercial office space. By 2014, only about 225 non-branch employees were still based in Albany at the former KeyCorp Tower.
951:), a 947-foot skyscraper that was more commensurate with a major bank headquarters than the modest buildings used in Albany. These issues made Cleveland the preferable location for the merged bank's headquarters. Conversely, Key's brand was more recognizable. 1231:. In March 2009, the city and KeyCorp signed a new deal for a two-year term that ended December 31, 2010, at an annual fee of $ 300,000. The building maintained the KeyArena name until its 2018 closure for renovations and the building is now known as the 1176:
In September 2019, Christopher Gorman was appointed president. On May 1, 2020, Christopher M. Gorman assumed the role of Chairman, Chief Executive Officer, and President of KeyCorp bringing more than 30 years of financial services experience to his role.
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But Gillespie was attempting to increase fee-income by acquiring high-growth businesses, including McDonald and equipment financing firm Leastec, and decreasing the exposure to the bank's shrinking population base in its primary footprint, so-called
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target and investors were cooling on Key stock after many high growth years. Key began testing a Vision 2001 computer system, which sped up and enhanced the loan process through faster credit scoring, loan servicing, and collection capabilities.
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KeyBank provided $ 21 Million in financing options for seniors in a senior housing initiative based in New York in June of 2023. However, in May earlier that year, multiple groups claim that they broke a $ 16.5 billion promise.
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New York and a western one in the Rockies and Pacific Northwest—within a single corporate structure. Society, in contrast, was a classic big-city commercial bank with a centralized structure largely concentrated in three states.
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in 2007 for roughly $ 280 million (~$ 396 million in 2023). As a result, Key began processing all subsequent securities transactions under its new broker-dealer name, "KeyBanc Capital Markets Inc", in April 2007.
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While still integrating Society Bank and KeyBank, Gillespie attempted to turn Key into a financial services powerhouse. Between 1995 and 2001, Gillespie initiated nine significant acquisitions and 6 divestitures.
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to become First Commercial Banks in 1971, still a modest New York State bank with 89 offices. Victor J. Riley Jr. became president and CEO in 1973, and changed First Commercial's name to Key Bank Inc. in 1979.
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for $ 653 million (~$ 1.14 billion in 2023) in stock. The McDonald acquisition was the largest non-banking deal in both size and impact on Key. McDonald was sold to the U.S. investment arm of
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By 1993, the rural strategy with local management and minimal technology made Key a very profitable bank. However, it was getting tougher for Riley and CFO William Dougherty to maintain their 15%
863:, for which he was flogged in the media and in banking circles. Unorthodox strategy aside, Riley quintupled Key's assets from $ 3 billion to $ 15 billion in just four years between 1985 and 1990. 791:, which was Ohio's largest bank during the 1940s through the late 1970s. The AmeriTrust deal established Society as a large regional bank. However, its footing became unsteady due to bad 2383: 879:
a bank, it retained most of the bank's personnel. Riley argued that a bank that entered new territory and "start(ed) shuffling people around" could not brand itself as a community bank.
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In January 2015, KeyBank participated in the construction debt financing syndicate behind the Balko Wind Project purchased from Apex Clean Energy by D.E. Shaw Renewable Investments.
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continued to be used in Society's former footprint for an additional two more years before it was retired in June 1996 and the charters were merged.
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is an American regional bank headquartered in Cleveland, Ohio, and the 25th largest bank in the United States. Organized under the publicly traded
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In May 2011, Key made history by naming Beth E. Mooney, previously the bank's president, as the first female Chairman and CEO of a top 20 bank.
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The merger was announced in early October 1993. This time it was Riley who made the first move; he called Gillespie while recuperating at his
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Riley embarked on a plan to grow Key through acquisitions. From the mid-1970s to the early 1980s, it made numerous acquisitions throughout
191: 798:, forcing the resignation of AmeriTrust chairman Jerry V. Jarrett in 1990. Moreover, Gillespie was able to outbid Society's larger rival, 1668: 2536: 2491: 535: 1868: 210: 2496: 2241: 1889: 1812: 1624: 246: 228: 162: 65: 1511: 1124: 1909: 2407: 1853: 1605: 1131:, old KeyCorp's longtime rival. Five years earlier, First Niagara had acquired most of the upstate New York branch network of 2402: 1645: 100: 1793: 1115:. The deal made Key one of the largest banks in Pittsburgh, and gave it branches that were once part of the crosstown rival 2193: 1712: 1052: 1135:, which had changed its name from Marine Midland in 1999; as mentioned above, Key had acquired 37 HSBC branches in 2012. 2556: 2476: 1163: 944: 743: 2358: 2331: 143: 1773: 1488: 1406: 1376: 206: 2266: 115: 2526: 1873: 1629: 1573: 1001: 89: 2177: 2094: 2010: 940: 1690: 1051:
In October 2008, Key received approximately $ 2.5 billion (~$ 3.47 billion in 2023) in investment from the
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in 2008 before being outbid by First Niagara. As a result, KeyCorp now held much of the core of what had been
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obfuscate earnings. For instance, Key sold its residential mortgage servicing to Countrywide Financial (now
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for $ 4.1 billion (~$ 5.1 billion in 2023) in cash and stock. The deal strengthened Key's position in
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Washington. Also in 1992, Key acquired Home Federal Savings of Fort Collins, its first move into
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In 2021, KeyBank originated 52,366 mortgages worth $ 25 billion (~$ 27.7 billion in 2023).
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In 2019, KeyBank announced it will be opening its first tellerless branch on May 13, 2019, in
988: 684: 510: 1732: 1004:) in 1995, shareholder services in 1996, various chunks of the bank in 1997–1999 (i.e. 702:
KeyBank is the primary subsidiary of KeyCorp, which was formed in 1994 through the merger of
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sold the naming rights to KeyCorp for $ 15.1 million, which renamed the Coliseum as
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Riley became chairman and CEO of the "new" KeyCorp, with Gillespie as president and
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KeyBank's footprint in the contiguous United States; branches in Alaska not shown.
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depressions and financial panics. In 1958, Society converted from a mutual to a
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at the annual meeting on May 17 during which he was replaced by Henry Meyer.
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billion banking behemoth with a footprint that literally stretched from
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Although Gillespie had built Society into a regional powerhouse in the
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as part of its purchase of First Niagara. The arena is home to the
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In May 2013, the company acquired mortgage servicing rights from
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in 1825 and Cleveland's Society for Savings, founded in 1849.
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rural and underserved areas. He snapped up small banks in
1254:- Official Bank & Private Bank of the Buffalo Sabres. 1138:
As part of the transaction, 18 First Niagara branches in
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In late 1998, Key bought Cleveland-based brokerage firm,
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American regional bank headquartered in Cleveland, Ohio
2427: 1468:"A Keycorp-Society Merger Is Expected to Be Disclosed" 618: 1890:"KeyCorp (KEY,N) reports earnings for Qtr to Sept 30" 1284:- Official Banking Partner of the Colorado Avalanche. 787:, in September 1991. Ameritrust was the successor to 1569:"Trustcorp to merge with Society Corp. of Cleveland" 209:, and by adding encyclopedic content written from a 2074:"KeyBank agrees to buy 37 upstate NY HSBC branches" 1302:- Official Banking Partner of the Portland Timbers. 1162:KeyBank continues to play an important role in the 834:. However, by the mid-1980s, banking regulators in 613: 603: 586: 569: 552: 533: 520: 474: 450: 440: 423: 397: 382: 374: 348: 325: 315: 303: 103:. Unsourced material may be challenged and removed. 2031:"KeyCorp to repay TARP; prices $ 625 mln offering" 2011:"KeyCorp plans to use bailout money to be a buyer" 1989: 1969: 1948: 1910:"KeyCorp aims to become 'First Choice' in finance" 1888: 1792: 1752: 1667: 1644: 1604: 1544: 1466: 1272:- Official Bank of Villanova University Athletics. 2267:"Gorman Completes First Month at Helm of KeyCorp" 1971:"Key to sell McDonald Investments in $ 280M deal" 1296:- Official Banking Partner of the Indiana Pacers. 1290:- Official Banking Partner of the Denver Nuggets. 750:. Despite erecting the tallest structure between 2487:Companies listed on the New York Stock Exchange 1950:"KeyCorp to Acquire McDonald for $ 653 Million" 1625:"Society buys AmeriTrust in $ 1.2 billion deal" 891:Society National Bank and KeyBank merger (1994) 875:. Key soon amassed nearly 700 banking offices. 541:2,333,000,000 United States dollar (2022)  378:Society National Bank and KeyBank (Old KeyCorp) 1869:"Society and KeyCorp announce merger approval" 1546:"Trustcorp and Society To Merge in Stock Deal" 943:Allen J. Gula. Riley also lamented the modest 2542:Systemically important financial institutions 2357:Crowell, Opinion by Charlene (May 11, 2023). 2285:"Executive Leadership: Christopher M. Gorman" 1606:"Society Corp. in Ohio to Acquire Ameritrust" 859:. He even went so far as to buy two banks in 8: 730:Society For Savings originated in 1849 as a 266: 1713:"MERGER KeyCorp to buy Puget Sound Bancorp" 1278:- Official Bank of the Pittsburgh Penguins. 1107:for the first time with a presence in both 726:Society Corporation (Society National Bank) 66:Learn how and when to remove these messages 1794:"Keycorp-Society Deal Is Merger of Equals" 1774:"Successor To Key Bank Chairman Is Picked" 1685: 1683: 1360:"KeyCorp 2019 Annual Report Form and 10-K" 1044:position on February 1, 2001, and then as 543: 265: 2522:Economy of the Southeastern United States 2517:Economy of the Northwestern United States 2512:Economy of the Northeastern United States 1248:- Official Bank of the Akron RubberDucks. 247:Learn how and when to remove this message 229:Learn how and when to remove this message 163:Learn how and when to remove this message 1929:"Key poised to resume bank acquisitions" 1669:"National City Makes Bid for AmeriTrust" 1460: 1458: 1266:- Official Bank of the Seattle Mariners. 1061:In January 2012, Key acquired 37 former 2507:Economy of the Midwestern United States 1437:"Biggest US Banks by Asset Size (2021)" 1348: 772:he was finishing his graduate studies. 2502:American companies established in 1994 2072:Thompson, Carolyn (January 12, 2012). 1991:"Gillespie will retire as KeyCorp CEO" 1968:Turner, Shawn A. (September 6, 2006). 1512:Executive Profile: Robert W. Gillespie 1260:- Official Bank of the Buffalo Bisons. 802:, which also bid for Cleveland Trust. 190:contains content that is written like 2552:Mortgage lenders of the United States 2547:Investment banks in the United States 2171:Fleischer, Chris (October 30, 2015). 2150:Sabatini, Patricia (March 21, 2009). 2051:Goudreau, Jenna (September 6, 2011). 1927:Turner, Shawn A. (October 23, 2006). 1813:"Executive Profile: Allen J. Gula Jr" 1603:Quint, Michael (September 14, 1991). 1354: 1352: 1087:First Niagara Bank and KeyBank merger 7: 1655:. Associated Press. August 30, 1990. 826:, and eventually adding branches in 101:adding citations to reliable sources 2152:"FNB won't buy National City units" 1091:On July 29, 2016, KeyCorp acquired 2009:Mezger, Roger (October 27, 2008). 1119:, which Key tried to acquire from 25: 1847:DeMasi, Michael (July 23, 2014). 1791:Hansell, Saul (October 5, 2003). 1590:Encyclopedia of Cleveland History 1588:Case Western Reserve University, 1465:Hansell, Saul (October 2, 1993). 47:This article has multiple issues. 2240:Nobile, Jeremy (April 5, 2019). 1772:Gupta, Himanee (June 24, 1993). 1523:Pusey, Roger (October 5, 1993). 1330: 1314: 1125:National City acquisition by PNC 595: 594: 578: 577: 561: 560: 525: 524: 281: 272: 179: 77: 36: 2408:American City Business Journals 2093:Humer, Caroline (May 9, 2013). 1854:American City Business Journals 1666:Quint, Michael (May 21, 1991). 1223:On April 11, 1995, the city of 631:Footnotes / references 88:needs additional citations for 55:or discuss these issues on the 2192:Glynn, Matt (April 28, 2016). 2173:"KeyCorp buying First Niagara" 1646:"Chairman Quits At Ameritrust" 1525:"Merger Won't Change Key Bank" 1188:Naming rights and sponsorships 1040:. Gillespie resigned from the 1: 2401:Lamm, Greg (April 19, 2013). 1908:Pusey, Roger (May 18, 1995). 1164:regional economy of Cleveland 1053:Troubled Asset Relief Program 775:Society Corporation acquired 2472:Companies based in Cleveland 945:Albany International Airport 783:in 1990 and holding company 744:Society for Savings Building 599:$ 17.688 billion (2020) 582:$ 171.00 billion (2020) 2482:1994 establishments in Ohio 2434:Business data for KeyBank: 810:In 1825, New York Governor 565:$ 1.708 billion (2019) 529:$ 6.200 billion (2020) 2573: 2246:Crain's Cleveland Business 1976:Crain's Cleveland Business 1874:United Press International 1630:United Press International 1574:United Press International 1166:, having 6,400 employees. 1002:Bank of America Home Loans 258: 2537:Subprime mortgage lenders 2492:Banks established in 1994 2178:Pittsburgh Tribune-Review 1240:KeyBank is a sponsor of: 1146:in New York were sold to 941:Chief Information Officer 629: 280: 271: 2497:Banks based in Cleveland 2157:Pittsburgh Post-Gazette 2079:San Diego Union Tribune 1733:"Key banks re-engineer" 1193:KeyBank owns corporate 960:chief operating officer 789:Cleveland Trust Company 2271:business journal daily 1996:Albany Business Review 1218:National Hockey League 1158:Current day operations 1148:Northwest Savings Bank 1121:PNC Financial Services 1103:, as well as entering 785:AmeriTrust Corporation 699: 691: 676: 662: 1633:. September 13, 1991. 868:early 1990s recession 769:Central National Bank 765:Society National Bank 710:("Society Bank") and 697: 682: 668: 657: 211:neutral point of view 1934:Crain Communications 1877:. February 16, 1994. 1270:Villanova University 1233:Climate Pledge Arena 689:Salt Lake City, Utah 97:improve this article 2557:Rogue trading banks 2477:Banks based in Ohio 2403:"KeyArena no more?" 2311:"KeyBank Mortgages" 1998:. January 18, 2001. 1897:. October 18, 1994. 1836:. October 10, 1993. 1761:. October 23, 1992. 1276:Pittsburgh Penguins 1225:Seattle, Washington 1208:. Key acquired the 1129:Marine Midland Bank 1117:National City Corp. 1073:for $ 110 million. 800:National City Corp. 732:mutual savings bank 714:("Old KeyCorp") of 704:Society Corporation 605:Number of employees 425:Number of locations 268: 203:promotional content 2388:Seattle City Clerk 2384:"Ordinance 122944" 2221:. The Plain Dealer 1955:The New York Times 1895:The New York Times 1834:The New York Times 1799:The New York Times 1759:The New York Times 1693:. Funding Universe 1674:The New York Times 1652:The New York Times 1611:The New York Times 1551:The New York Times 1501:. October 4, 1993. 1474:The New York Times 1282:Colorado Avalanche 1197:to the following: 1093:First Niagara Bank 1071:First Niagara Bank 989:McDonald & Co. 700: 692: 677: 663: 658:KeyBank branch in 609:16,975 (2022) 499:Investment banking 491:Financial analysis 366:Financial services 361:Investment banking 205:and inappropriate 2527:Online brokerages 2390:. March 30, 2009. 2363:The Atlanta Voice 2135:(Press release). 2039:. March 11, 2011. 1778:The Seattle Times 1741:. April 12, 1993. 1494:The Seattle Times 1246:Akron RubberDucks 1206:Buffalo, New York 1171:Boulder, Colorado 806:KeyCorp (KeyBank) 685:City Creek Center 683:KeyBank Tower at 637: 636: 511:Wealth management 483:Corporate banking 342:S&P 500 Index 257: 256: 249: 239: 238: 231: 173: 172: 165: 147: 70: 16:(Redirected from 2564: 2431: 2430: 2428:Official website 2413: 2412: 2398: 2392: 2391: 2380: 2374: 2373: 2371: 2369: 2354: 2348: 2347: 2345: 2343: 2328: 2322: 2321: 2319: 2317: 2307: 2301: 2300: 2298: 2296: 2281: 2275: 2274: 2263: 2257: 2256: 2254: 2252: 2237: 2231: 2230: 2228: 2226: 2210: 2204: 2203: 2199:The Buffalo News 2189: 2183: 2182: 2168: 2162: 2161: 2147: 2141: 2140: 2139:. July 29, 2016. 2129: 2123: 2122: 2111: 2105: 2104: 2090: 2084: 2083: 2069: 2063: 2062: 2047: 2041: 2040: 2027: 2021: 2020: 2016:The Plain Dealer 2006: 2000: 1999: 1993: 1986: 1980: 1979: 1973: 1965: 1959: 1958: 1957:. June 16, 1998. 1952: 1945: 1939: 1938: 1924: 1918: 1917: 1905: 1899: 1898: 1892: 1885: 1879: 1878: 1865: 1859: 1858: 1844: 1838: 1837: 1826: 1820: 1819: 1809: 1803: 1802: 1796: 1788: 1782: 1781: 1769: 1763: 1762: 1756: 1749: 1743: 1742: 1729: 1723: 1722: 1721:. March 9, 1992. 1709: 1703: 1702: 1700: 1698: 1687: 1678: 1677: 1671: 1663: 1657: 1656: 1648: 1641: 1635: 1634: 1621: 1615: 1614: 1608: 1600: 1594: 1585: 1579: 1578: 1577:. June 19, 1989. 1565: 1559: 1558: 1557:. June 20, 1989. 1555:Associated Press 1548: 1541: 1535: 1534: 1520: 1514: 1509: 1503: 1502: 1485: 1479: 1478: 1470: 1462: 1453: 1452: 1450: 1448: 1443:. April 20, 2021 1433: 1427: 1426: 1424: 1422: 1417:on March 8, 2020 1413:. Archived from 1403: 1397: 1396: 1394: 1392: 1387:on March 8, 2020 1383:. 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