KeyBank to Close 30 Local Branches Following First Niagara Acquisition

KeyCorp, the parent company of KeyBank, has announced plans to close 30 local bank branches as part of its ongoing integration with First Niagara Bank. This move follows KeyCorp’s $4.1 billion acquisition of the Buffalo-based First Niagara Bank, which is expected to be completed within the next two months.

The branch closures are part of a broader strategy to streamline operations and eliminate redundancies resulting from the merger. This consolidation is aimed at enhancing efficiency and improving customer service by reducing overlap in the banking network.

KeyCorp, headquartered in Cleveland, Ohio, operates through its two main segments: Consumer Bank and Commercial Bank. The company provides a wide range of retail and commercial banking products and services, including deposits, investment products, commercial leasing, and various financial advisory services.

The acquisition of First Niagara Bank is a significant step for KeyCorp, expanding its footprint and customer base. However, the integration process involves careful planning to ensure minimal disruption to customers and to maintain the quality of service.

KeyCorp’s recent financial reports have shown mixed results, with the company’s Q3 2024 GAAP results being impacted by portfolio repositioning, although adjusted EPS beat expectations. The company’s strategic moves, including the sale of nearly $7 billion of low-yield investments, are part of its efforts to optimize its balance sheet and improve overall performance.