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KeyCorp's deal to buy First Niagara is a return to significant M&A for a company that has long been content to stay on the sidelines. But getting such a deal approved is tougher than ever, and will test Beth Mooneys regulatory juice.
October 29 -
KeyCorp in Cleveland will retain two First Niagara Financial Group executives after its acquisition of the Buffalo, N.Y., company closes.
January 4 -
KeyCorp will keep and expand First Niagara Financial Group's Buffalo, N.Y.-based mortgage operations to spur along its return to being a player in residential lending.
December 17
First Niagara Financial Group in Buffalo, N.Y., which is being sold to KeyCorp, cited restructuring and merger-related charges in reporting a 30% profit decline.
The $40 billion-asset company's net income was $43.3 million in the fourth quarter, down from $61.5 million in the fourth quarter of 2014, it said Friday. Earnings per share were 12 cents, versus 17 cents in the year-earlier period.
Noninterest expenses rose 13% to $265 million. First Niagara recorded $3 million in restructuring charges and $14 million in merger-related costs tied its agreement to be sold to Cleveland-based KeyCorp. The $4.1 billion cash-and-stock deal was announced Oct. 30 and is expected to close in the third quarter.
A 2% drop in net interest income to $266.5 million was another factor in the lower profit, First Niagara said. While total loans rose 4% to $23.8 billion, the net interest margin narrowed by 13 basis points to 2.98%.
Noninterest income rose 16% to $89.4 million.
