KeyCorp (NYSE:KEY) announced last month that the acquisition of First Niagara Financial Group, Inc. (NASDAQ:FNFG) had already been closed.
As a result of the completion of the acquisition merging First Niagara Bank into KeyBank, subject to the approval of the Office of the Comptroller of the Currency (OCC), systems and client conversion will commence by the fourth quarter.
Beth Mooney, KeyCorp Chairperson and CEO, noted that the merger of First Niagara Bank and KeyBank serves the best interests of all their clients. Accordingly, this new milestone brings about new array of extensive opportunities in the industry, enabling them to optimize performance and growth for the long-term.
What to Expect
Now that the acquisition has been fulfilled after nine months, about 300 additional branches will be deployed in Connecticut, Massachusetts, New York (NY), and Pennsylvania. This brings the total number of KeyBank branches across the US to over 1,200. Moreover, as of June 30, approximately $40 billion in total assets and about $29 billion in deposits will be added to the balances of KeyCorp.
Q2 Financial Highlights
The company has issued its second quarter earnings report two weeks ago, reporting a net income of $193 million, which is equivalent to $0.23 per share. This shows a sequential increase from a net income of $182 million, which is equivalent to $0.22 per share; but it indicates a year-over-year drop from $230 million, which is equivalent to $0.27 per share.
For the period, merger-related expenses amounted to $45 million, which is equivalent to $0.04 per share. This shows a sequential surge from merger-related expenses of $24 million, which is equivalent to $0.02 per share. Excluding this, the company posted earnings per share (EPS) of $0.27 for the second quarter, which indicates a sequential jump from an EPS of $0.24.
Mooney reiterated that these results reflect an encouraging momentum in the company’s core businesses, citing the acquisition of First Niagara Financial Group as a key endeavor in sustaining long-term prospects.