KeyBank to Acquire Laurel Road Online Lending Business


CLEVELAND, January 16, 2019 / PRNewswire / – KeyBank National Association today announced that KeyBank and Laurel Road Bank have entered into a definitive agreement to acquire Key’s digital lending business from Laurel Road; The three Laurel Road bank branches located in the south-east Connecticut are not part of this transaction. With this acquisition, Key will enhance its digital capabilities with cutting-edge customer-centric technology and leverage Laurel Road’s proven ability to attract and serve millennial business customers.

Laurel Road, based in New York City, built a premier student loan refinancing platform, which was launched in 2013 and has grown rapidly, totaling over $ 4 billion in loan arrangements to date. The end-to-end consumer lending platform delivers a streamlined and seamless experience with personalized lending products. In 2018, the company introduced an innovative platform for mortgages using the same secure lending technology to provide buyers and homeowners with a streamlined, request-to-payment experience. Laurel Road has leveraged its differentiated technology to build a solid reputation for delivering high-quality customer experiences and solutions to targeted customer segments, such as healthcare professionals, lawyers and graduate students. .

In addition to its cutting edge technology and distinctive customer experience, Laurel Road has created an extensive network of Affinity Partners through which it is a preferred supplier of its products. This broad platform includes partners from trade associations, membership groups and employers and aligns closely with Key’s approach to strategic partnerships.

“We are delighted to have the opportunity to partner with Laurel Road and continue to grow their business,” said the vice chairman of the board and president of banking services, Chris Gorman. “As we shared on our Investor Day in October, Key is focused on building a targeted scale to distinct customer segments through distinct platforms. Laurel Road’s model of being Focusing on graduate professionals is not only consistent with Key’s approach, but also complements our focus on specific sectors more broadly. We have invested significant resources in building our own strategic partnerships with fintech companies and we haven’t yet come across a company that so clearly matches our business and cultural approach to serving our customers. ”

“We are delighted to combine our technological expertise with Key’s industrial expertise,” said Gary Lieberman, founder and chairman of Laurel Road Bank. “We couldn’t have found a better strategic partner to help take Laurel Road to the next level and continue our mission of serving Millennial customers with technology that meets them where they are on their financial journey. Together, we will work to create innovative digital. financial experience for all of our customer segments. ”

In addition to the technology and business platform, Key is eager to join the Laurel Road team. “The Laurel Road management team is truly exceptional,” said Gorman. “While operating in a banking regulatory environment, Laurel Road has been an innovator in the field of online lending and has experienced significant growth, a remarkable achievement under Gary’s leadership. With the integration, approximately 140 Laurel Road employees will join Key. Employee teams will continue to be based in new York, Connecticut, and California.

The acquisition is subject to customary closing conditions, including regulatory approvals. Financial terms of the transaction were not disclosed. KeyCorp was advised by Debevoise & Plimpton LLP. Laurel Road Bank was advised by RBC Capital Markets and Fried Frank.

About KeyCorp
KeyCorp’s (NYSE: KEY) roots go back 190 years to Albany, New York. Based at Cleveland, Ohio, Key is one of the largest banking financial services companies in the country, with assets of approximately $ 138.8 billion as of September 30, 2018. Key provides deposit, lending, cash management and financial services. investment to individuals and businesses in 15 states under the KeyBank name. National association through a network of more than 1,100 branches and more than 1,500 ATMs. Key also provides a wide range of sophisticated investment and corporate banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to mid-market companies in selected sectors through United States under the trade name KeyBanc Capital Markets. For more information visit https://www.key.com/. KeyBank is a member of the FDIC.

About Laurel Road
Laurel Road is a national online lending company and FDIC insured bank, providing online student loan refinancing, personal loan and mortgage products, as well as personal and business banking. Laurel Road began providing student loans in 2013 and has since helped thousands of professionals with graduate and undergraduate degrees refinance and consolidate over $ 4 billion in federal and private school loans. With our low rates, borrowers have reduced their monthly payments and saved an average of tens of thousands of dollars. For more information on potential savings, see laurelroad.com/student. Laurel Road Bank is a Connecticut chartered bank offering loan products in all 50 US states, Washington DC and Porto Rico. The mortgage product is not available in Porto Rico. Laurel Road Bank is an equal housing lender, member of the FDIC. NMLS ID # 402942.

Forward-looking statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “outlook”, “purpose”, “objective”, “plan”, “” , “Anticipate”, “intend”, “project”, “believe”, “estimate” and other words with similar meaning. Forward-looking statements represent management’s current expectations and forecasts regarding future events. If the underlying assumptions prove to be incorrect or if unknown risks or uncertainties arise, actual results could differ materially from those projections or expectations. Factors that could cause Key’s actual results to differ from those described in forward-looking statements can be found in KeyCorp’s Form 10-K for the year then ended. December 31, 2017, as well as in KeyCorp’s subsequent filings with the SEC, all of which have been filed with the Securities and Exchange Commission and are available on Key’s website (www.key.com/ir) and on the website of the Securities and Exchange Commission (www.sec.gov). Forward-looking statements speak only as of the date on which they are made and Key assumes no obligation to update forward-looking statements to reflect new information or future events.

SOURCE KeyCorp

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