KeyCorp doesn't expect to any incur more expenses related to its acquisition of First Niagara Financial Group, said Beth Mooney, Key's chairman and CEO, as the bank released its quarterly earnings.
Key recorded $56 million in expenses in the fourth quarter related to the 2016 deal. The Cleveland-based bank racked up a total of $697 million in expenses related to the First Niagara deal going back to late 2015, when Key took its first steps toward completing the purchase.
Meanwhile, Key expects to achieve the last $50 million in its projected annual cost savings from the First Niagara deal in the first half of this year, bringing that total to $450 million. The final $50 million includes savings on vendor contracts and occupancy costs from nonbranch office space.
With the expenses from the merger complete, and the targeted cost savings nearly achieved, Key can turn its attention to building on revenues as a result of the merger, Mooney said. One of the bank's targets for growth is in residential mortgages, a business it acquired through the First Niagara deal. Key now has about 300 mortgage loan officers around the country, compared to about 200 at this time last year, she said.
Key in the fourth quarter recorded net income from continuing operations attributable to Key common shareholders of $181 million, or 17 cents per share, compared to $213 million, or 20 cents per share, a year earlier.