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

Copyright 2016 PR Newswire

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