KeyBank on the move
A year ago, KeyBank”™s Hudson Valley/Metro New York district President Michael Orsino was busy unpacking. KeyBank had acquired Union Savings Bank, and his new offices at USB”™s former headquarters at 100 Dutch Hill Road in Orangeburg were emerging from a phalanx of packing boxes.
Now, Orsino is repacking. KeyBank has sold that property in a deal brokered by Stamford, Conn.-based CB Richard Ellis to Dutchill Road Partners for $2.85 million. Key has been leasing its offices at 100 Dutch Hill Road on a month-to-month basis until it seals the deal on its new building. Orsino said if all goes as expected, Key”™s new headquarters will be up and running by the end of the first quarter of 2010.
Orsino declined to disclose the new headquarters location, saying, “When the deal is signed, I”™ll feel much more comfortable about that.”
Key”™s Hudson Valley district headquarters moved from Newburgh to Poughkeepsie ”“ its former offices are now part of SUNY Orange”™s new campus on the Newburgh waterfront ”“ but Orsino said in a telephone interview Dec. 20 that Key is committed to Rockland and retaining its Hudson Valley/Metro New York headquarters there.
Â
“2009 was a continued year of change and challenge, but we did see strong improvement in this last quarter,” said Orsino. “We”™ve got some positive momentum going into 2010 and feel well-positioned for the New Year.”
Â
Key was among the banks that borrowed TARP funding, and Orsino said the bank anticipates buying back the TARP capital purchase investment “as soon as is practicable. We need to consult and receive approval from regulators. Times are still uncertain now. We did successfully raise $2.4 billion in additional capital in 2009, which has positioned us well. It puts us at the top tier of our pier bank group, a position we expect to retain in 2010, depending on which way the economy goes.”
As for the economy: “We are seeing signs of life ”“ lending activities have picked up,” Orsino said. “We are doing more deals, seeing more clients looking to invest and grow their business. There was a lot of ”˜wait and see”™ between the initial downturn in 2008 and into most of 2009.”
Orsino sees a long and winding road ahead for the country”™s recovery, “not a meteoric ride, as we”™ve seen in past recessions. Frankly, depending on what numbers you look at, we are either coming out of recession or going into one. Again, although times are uncertain, indicators are there telling us things are getting better.”
The consumer, said Orsino, is the big question mark. “They have led us out of past recessions. This time around, we believe business will lead us out. I do see favorable movement relative to business loan demands. We have 13 mortgage reps here in the region and our manager reports 2009 was a terrific year. We generated quite a bit of applications and mortgages that far exceeded our goal. There were a lot of re-fi”™s on the residential end, but there were also loans for new homes written.”
Â
Orsino said the first-time home buyer”™s credit did help (as did its extension into 2010), and the new cash incentive for second-time homebuyers is going to help move the market, helping borrowers to come up with closing costs that can be incorporated into their new mortgages. “Hopefully, that is going to help spur the residential real estate market, which is in need of a boost,” said Orsino.
Â
On the wish list for the New Year? “Clearly, I would love to see the business environment continue to improve,” Orsino said. “From Key”™s perspective, it has improved for us. I am seeing it happen already. We need to remain optimistic and continue growing positive client relationships. We are expanding on our momentum, opening new branches, and we are encouraged by the improvement in the business landscape we”™ve seen in the last two months. The more open dialogue we have, sitting down and conducting relationship reviews with clients, will help us to position ourselves better; like everyone else, we are clearly hoping that 2010 is going to be brighter for business and consumers.”
As for the mobility tax? “New York is not a tax-friendly state,” he said. “There are a lot of great things about it, but its taxes are not one of them. As far as the mobility tax, I can”™t answer as to how much that has cost us, but I sincerely doubt any of our employees in this region are using the MTA to get to work. Hopefully, a better way will be found to fund the MTA”™s problems.
“As far as the overall economy, we”™ve had good times and bad times, and neither last forever. We need to keep that in mind as we face the year ahead.”