Keycorp is targeting Florida's population of affluent retirees with a revamped program of investment services.
The Cleveland-based bank announced last week that it is launching a private banking business in the Sunshine State as well as beefing up its trust operations.
As part of the move, the trust operation, previously known as Society National Trust Co., will be renamed Key Trust Co. of Florida.
Effective this week, the country's 10th-largest bank is creating another link in what is Keycorp's network of 15 trust companies, with $64.2 billion in combined trust assets. Some of the others are located in New York, Indiana, and Alaska.
The Florida move is part of Keycorp's nationwide effort to annually increase its market share among the affluent by about 25%. In the Florida effort, Keycorp will for the first time provide banking services to its Florida customers.
Headquartered in Naples, Key Trust of Florida will handle an estimated $600 million in trust assets from four offices mostly covering the western coast of Florida, according to Frederick A. Deal, Keycorp's senior executive who oversees all of Keycorp's banking operations in Florida. Previously, Society National Trust, also based in Naples, offered only trust services.
As before, the Tampa office will administer about $250 million in institutional trust assets, including pension assets. Offices in Naples, North Palm Beach, and Fort Myers will manage about $350 million in personal trust assets.
With the exception of the office in Tampa, which will mostly handle institutional assets, the three Key Trust Florida offices will for the first time offer private banking services in Florida in addition to trust services, Mr. Deal said.
Under the reorganization, the offices in Naples, North Palm Beach, and Fort Myers will employ teams of trust experts, private bankers, and brokerage specialists, who will work together to cater to private banking customers with annual income of at least $100,000 and at least $250,000 to invest.
"With Florida as one of the most populated states, we have a tremendous amount of customers who are relocating here," said Mr. Deal, referring to Florida as a retirement haven for many wealthy Americans.
To lead the new effort, Keycorp last week announced it hired Timothy Kenczewicz as executive vice president and senior trust officer. Mr. Kenczewicz comes from AmSouth Bank of Florida, where he served as senior vice president and manager of that bank's trust and private banking offices in central and western Florida.
According to Mr. Kenczewicz, Florida's Key Trust unit has already hired two private bankers specializing in lending services and is looking to bring four more this year.
In addition, the company is looking to hire two brokers, who will be answering to the investing needs of private banking clients. The new hires will add to the existing team of 30 trust officers currently in Key Trust's Florida offices.
Officials with Key Trust of Florida said they hope to increase the subsidiary's trust assets by 25% and to increase its trust customer base of 700 clients.