BELLEVUE, Wash., Oct. 15 /PRNewswire/ -- KeyBank will build 20 new branches in Greater Seattle between 2009 and 2012, according to an announcement by Key's CEO Henry Meyer on a visit to Key's Seattle-Cascades District. The number of branches is five greater than the number announced in 2008.
Meyer brought news of the increased investment plan to 250 employees at a town hall-style meeting at the W Hotel in Seattle on Wednesday.
KeyBank operates 88 branches in its Seattle-Cascades District, which reaches from Seattle-Tacoma Airport, north to Canada and east to Spokane. Its 89th will open on October 18 in Anacortes.
Combined with its South Puget Sound District, Key will soon have 159 branches in Washington. The South Puget Sound District, covering from SeaTac Airport south to Tacoma and through most of southwest Washington, is opening branches this fall in the Lake Wilderness area of Maple Valley and in Panther Lake, near Kent.
Extension of the branch-building program, Meyer said, is due to a combination of factors. Foremost is the success of the six branches opened since 2008 in Bellingham, Belltown, Upper Queen Anne, Renton Landing, Canyon Park, and Renton Highlands. All six branches, Meyer said, have been performing beyond projections in four key metrics: internal rate of return, new clients, new loans and new deposits.
Seattle-Cascades District President Rick Wirthlin joined Meyer in the announcement, citing media reports that many other banks nationwide are closing branches and consolidating operations. "We're taking a different approach. We're investing in making banking easier by moving closer to where our clients live and work."
Wirthlin also credited market conditions and disruption for the change in plans since 2008. Current market conditions are making expansion less expensive, he said, as real estate is more available and construction costs are lower. Market disruption – the loss and consolidation of other banks – presents additional opportunity to attract disenfranchised customers.
Six sites have been secured for construction in 2011, with estimated grand opening dates as follows:
- Madison Park - February 14 - 4105 E. Madison Street, Seattle WA 98112
- Fremont - March 14 - 601 N. 34th Street, Seattle, WA 98103
- Wallingford - May 16 - 1700 N 45th St , Seattle, WA 98103
- Eastgate - June 13 - 3240 156th Ave. SE, Bellevue, WA 98007
- Fairwood - July 18 - 13923 SE Petrovitsky Rd., Renton, WA 98058
- Kenmore - August 29 - 7825 NE Bothell Way Kenmore, WA 98028
Another six to eight branches will be built in 2012. The first site will be in Bellevue at 148th & Main. A search for other locations is under way.
More than half of Key's branches in Greater Seattle have been remodeled since 2008.
Key's expansion and revitalization program reflects the continued importance of bank branches to consumers and businesses who increasingly seek a mix of channels to conduct their banking business. Key has continued to invest in its 14-state branch network, opening 38 new branches in eight markets in 2009 and working toward opening an additional 40 in 2010. The company completed renovations on approximately 160 branches over the past two years and expects to renovate another 100 branches in 2010.
Meyer said that Key is in an excellent financial position to be building branches, having taken steps to strengthen its capital position and control costs. Wirthlin added that the District has developed a rich pool of talent that is capable of filling managerial positions as its best managers are promoted to run new branches.
Cleveland-based KeyCorp is one of the nation's largest bank-based financial services companies, with assets of $98 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. The company's businesses deliver their products and services through 1,007 branches and additional offices; a network of 1,495 ATMs; telephone banking centers (1.800.KEY2YOU); and a Web site, https://www.key.com/ that provides account access and financial products 24 hours a day.