KeyBank has agreed to lend or invest $16.5 billion in low- and moderate-income communities as part of a community benefits agreement signed with the National Community Reinvestment Coalition. The commitment includes mortgage, small business, and community development lending, and philanthropy in low- and moderate-income communities, to be carried out over five years, beginning in 2017.
KeyBank’s summary of the plan explains that it addresses concerns expressed by the NCRC and NCRC member organizations in light of KeyBank’s pending acquisition of Buffalo, N.Y.-based First Niagara, scheduled for Q3 2016. KeyBank is headquartered in Cleveland, Ohio.
The Plan covers all 23 of KeyBank’s current markets, from Alaska to Maine, five of which, pre-acquisition, overlap with First Niagara: Buffalo/Niagara Falls, Rochester, Syracuse, Albany, and Hudson Valley. In addition, the Plan covers four First Niagara markets that will be new to KeyBank in: Philadelphia (and Allentown), Pa.; Pittsburgh, Pa.; Hartford, Conn. (including eight branches in Springfield, Mass.); and New Haven, Conn.
“This commitment is the result of a collaborative process with community members and bank leaders after months of give and take, resulting in a substantive and detailed commitment of resources and services to communities throughout the KeyBank and First Niagara Bank footprints,” said NCRC President and CEO John Taylor.
Key features of the $16.5 billion plan include:
- $5.0 billion in mortgage lending to low- and moderate-income communities;
- $2.5 billion in small business lending to low- and moderate-income communities;
- $8.8 billion in community development lending and investment;
- $175 million in philanthropic activities; and
- $5 million annually in marketing and communications outreach.
A KeyBank release stated that a partnership with the NCRC, including over 80 community organizations, provided valuable input to develop the National Community Benefits Plan. Beth Mooney, KeyCorp Chairman and CEO, said, "For us, balancing mission and margin is about a commitment that goes above and beyond what is required. It is simply the right thing to do, and it is good business. As evidence of that balance and our ongoing commitment to shareholders, we remain confident in and committed to meeting the growth and financial objectives of the KeyBank/First Niagara acquisition."
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