- Returning to a focus on making loans to smaller and mid-sized companies close to its Rust Belt base, KeyBank (NYSE:KEY) grew commercial and industrial loans on its balance sheet by 12.3% in 2014, outpacing regional bank peers like Fifth Third (NASDAQ:FITB) and PNC Financial (NYSE:PNC), where they grew 4% and 10% respectively.
- The home-turf focus has helped the stock price - up 68% since the start of 2013 vs. 40% for the KBW Bank Index (ETF: KRE).
- “We’ve learned our lessons from the downturn,” says CEO Beth Mooney. "We value good execution over fancy strategies ... We want to be where we matter and can get paid for it ... and a predictable earner."
- Risks? The crash in energy prices could threaten at least part of the Midwest's industrial expansion, but analysts say the risk is less that the loans go bad and more than the bank's strong loan growth slows.
- Source: The WSJ's James Sterngold