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Beth Mooney 61, has been CEO and Chariman of KeyCorp since 2011. She is the first woman CEO of a top-20 US bank.
Carlton Highsmith at ConnCat a non-profit he helped found and finance that provides arts training for young minority students and medical and culinary training for adults.
Once Local New Haven Savings Bank Merged Into “National” Bank
By Mitchell Young
CLEVELAND: First Niagara Financial Group, Inc., based in Buffalo with operations of the former New Alliance Bank in New Haven, has been acquired by Cleveland-based KeyCorp. KeyCorp, who like First Niagara had its roots in upstate New York, has grown into the 13th largest bank in the United States with $135 billion in assets.
Connecticut’s largest locally operated bank by assets is Peoples United with $39 billion and Bank America, the country’s second largest bank, also operates in Connecticut and has assets of $2.2 trillion.
The $4.1 billion acquisition of First Niagara expands Key’s footprint to include Pittsburg, Philadelphia, Connecticut and Western Massachusetts. Overlaps in Pennsylvania and New York will result in the sale of at least 18 branches in New York. Additionally, there is a reported 30% overlap in some First Niagara’s markets. There were no Key Bank locations in Connecticut.
Accounts are expected to convert from First Niagara to KeyCorp by the fourth quarter of 2016.
Key Bank has an unusual footprint for its more than 1,200 branches. It operates in 16 states including: Maine, Vermont, Massachusetts, Connecticut, and New York Pennsylvania. Ohio, Michigan, Indiana, Colorado, Utah, Idaho, Oregon, Washington, Alaska and Florida.
KeyCorp Chairman and CEO Beth Mooney saw her company’s stock drop in the past year as it finalized the merger. The high for the stock in the past few years has been just over $15 per share, it now trades at about $11.70. The market value of KeyCorp is just under $10 billion.
In an agreement with the National Community Reinvestment Coalition, an association of community groups, Key has agreed to $14.5 billion to spend and invest over the next five years on a “community benefits plan” to include small business lending and philanthropic contributions.
Local businessman and philantropist Carlton Highsmith and Business New Haven Business Person of the Year 2006 was a director of New Alliance Bank and was appointed a director of First Niagara, and now has been appointed a director of KeyCorp. Highsmith is also a director of Quinnipiac University and Yale New Haven Health System.
Buffalo, New York based First Niagara Bank with branches ranging from Buffalo to downtown New Haven is being sold to Ohio based Keybank for $4 Billion. First Niagara had previously bought New Haven based. New Alliance had been created to take over the New Haven Savings Bank and merge it with the Manchester Savings Bank in 2004. Taking New Haven Savings public was hugely controversial at the time. Several weeks ago First Niagara's landmark building in New Haven was sold for $18 million to local developer Paul Denz, who said he will be renovating the structure.
Several business outlets report a deal for $45 billion is imminent. CNBC Confirms
MILFORD — The Milford Bank has partnered with the Milford 375th committee to design a limited edition coin commemorating Milford’s anniversary. The coins feature the Milford 375th logo.
The coins will be sold in all Milford offices of the Milford Bank for $5. Proceeds from the coin sales will be divided among five local charities: the Milford Arts Council, Milford’s Promise, the Milford Historical Society, Boys & Girls Club of Milford and the Beth El Center. The commemorative coins are a special edition limited to 5,000 pieces.
Said Milford Bank President Bob Macklin: “As Milford’s hometown bank, we’re proud of our 142-year legacy of service to the Milford community. Funds raised through the sale of this coin will enable local organizations to better serve our friends and neighbors.”
MASHANTUCKET — Foxwoods Resort Casino revenues continue to slide. The casino reported slot revenue of $43.7 million for the month of May. This figure is down 9.3 percent compared to $48.2 million in May of 2013. Handle for the month was $541.8 million, down 2.9 percent from the $557.9 million wagered in the same month in 2013.
Foxwoods’ contribution to the Connecticut Special Revenue Fund for the month of May was $11.7 million, bringing the cumulative contribution to the state since Foxwoods opened in 1992 to nearly $3.6 billion.
CBIA seeks to make state less business-hostile in 36 short months
In three years, it may be accomplished. If so, Connecticut then be among the top 20 states to do business on every major assessment list.
That’s if the Connecticut Business & Industry Association (CBIA) has its way. The organization has set business preeminence for the state as the goal of its new campaign, “CT20x17.”
“It kind of grew out of disappointment, with some of our member companies, and conversations they’ve had with our president and CEO [John Rathgeber],” says Joseph Brennan, CBIA’s senior vice president of public policy, about the campaign’s origin. “It was born out of frustration that Connecticut hasn’t been moving forward as fast as it could.”
The main, overriding concern that CT20x17 aims to address is economic stagnation, Brennan says.
“Overall, the problem is economic growth. Our economy has been growing very slowly. It’s actually shrunk” over the past several years, Brennan says.
He adds that two top reasons for the state’s lagging economic situation is its transportation infrastructure — including lack of an expanded rail service — and a workforce that lacks training for available jobs, which leaves managers and administrators with “an inability to find skilled employees for [their] businesses,” says Brennan.
Add in factors such as the high cost of housing, highway congestion, energy costs and other variables associated with doing business, and Connecticut finds itself coming up short, Brennan adds.
He points, for example, to a 2013 CNBC survey that listed the Nutmeg State 45th among states for business environment nationwide. The survey considered broad indicators such as technology and innovation, education, business friendliness, cost of living, access to capital, workforce, economy, infrastructure, cost of doing business, and quality of life. In all, 51 specific competitive measures were examined. The measures were determined with the help of input from national business groups.
While the CNBC survey ranked Connecticut high (No. 5 nationally) in the education category, it was positioned at the bottom of the list for infrastructure, cost of living and cost of doing business (Nos. 49, 48 and 43, respectively).
By comparison, Connecticut’s neighbors, Massachusetts and New York, fared better even with comparable metrics in some categories. For example, both border states ranked lower than Connecticut for cost of doing business. The Bay State was listed as No. 47 and Empire State No. 49 in that category. Both also scored low for cost of living: Massachusetts at No. 43 and New York No. 47.
But those low scores were tempered for those states by high scores in areas such as technology and innovation (New York tops in the nation; Massachusetts No. 7) and economy (Massachusetts No. 3, New York No. 14). Overall, Massachusetts ranked 16th, while New York ranked 35th among top states in the country for business, according to the CNBC survey.
The way business is assessed for surrounding states is important to Connecticut because it can affect the economic climate and opportunities here, according to Frank J. Johnson, president/CEO of the Manufacturing Alliance of Connecticut (MAC).
“States that surround us are looking to take our businesses away,” he says. One way to do that is to offer a higher-quality workforce.
“There’s a growing skills gap in Connecticut,” says Johnson. “There’s a huge difference between the number of positions out there and the number of positions [being filled].” Technical jobs in areas such as quality control, computer numerical control (CNC) machine operators, and tool-and-die makers lack qualified people to fill them, he says. Many experienced workers in these areas are retiring, and jobs are becoming available much more rapidly than they can be filled.
State programs such as STEP UP — which provides incentives for businesses to train and hire low-income and/or unemployed workers — help. But they are far from a cure-all, Johnson says.
“STEP UP has eased [the situation] somewhat, but the number of people who can participate in a program like that, it still doesn’t fill the voids,” Brennan says.
However, while Forbes and other surveys report business-ranking findings for Connecticut are comparable to those of the CNBC survey, it must be remembered that many of the variables are not completely dispassionate, Brennan says.
“They’re based on data points that are researched. A lot of it is very subjective,” Brennan says, adding, “I don’t think we’re the 45th worst place to do business — I think we’re better than that.
“We have a great quality of life in Connecticut,” he adds. “There’s great potential in Connecticut. We have world-class businesses here, and an educated workforce. There are a lot of assets.
He acknowledges, however, that perception is key.
“Unless we can eliminate this perception that Connecticut is not a good place to do business,” companies will not take root and/or grow and expand in the state, Brennan says.
Perceptions, as well as “having practical solutions” about the state’s business climate, is where CT20x17 comes in, says Brennan. The organization’s steering committee will determine the direction of initiatives that range from business-friendly legislative support, to better job-targeted training, to educating citizens about the potential for greater middle-class mobility.
“We want to let the voting populace know to vote for candidates” who support CT20x17 goals, Brennan notes about the latter emphasis. “This is the initial stage, just to kind of get [individuals and organizations] buying into the overall concept,” he adds.
Getting the message out to elected officials — and the people who vote them into office –— is one part of the CT17x20 strategy. Media campaigns, community meetings and other directed efforts are all part of the plan to place Connecticut among the top 40 percent of business-friendly states in the country by the year 2017.
General areas of focus include improving the state’s fiscal policy (operating within a consistently balanced budget); reducing business costs and red tape; improving the mass transportation system, including roads, bridges and seaports; and enhancing the talent pool through better education and pipeline opportunities.
CBIA estimates that an initial, roll-out budget will be about $500,000.
“Since this is a multi-year plan, we have no way of knowing what the total spend will be over the next three years,” Brennan acknowledges. “For this calendar year, we will likely spend somewhere between $400,000 and $600,000 on advertising. We generally do all of our creative in-house, so we do not anticipate any spending there.”
In the two months since CT17x20 was announced, dozens of local, regional and statewide entities have signed on in support of it. They include MAC, Connecticut Retail Merchants Association, Connecticut Lodging Association, Bridgeport Regional Business Council, Mechanical Conductors Association of Connecticut, New Haven Manufacturers Association, Business Council of Fairfield County, Motor Transport Association of Connecticut, Home Builders and Remodelers Association of Connecticut, and a number of chambers of commerce, to name a few.
“We don’t have final solutions,” Brennan says. “It’s really a broad coalition.”
“Obviously, we’re supportive of the idea of making Connecticut more competitive for businesses,” says MAC’s Johnson. “We always have wanted businesses to start, grow, survives and of course stay here.”
Johnson says the similar goals of MAC and CBIA make for a natural coalition.
“There’s a lot of commonality in our desired ultimate goals,” Johnson says. “The last survey we did with our members, taxation and the regulatory burden” were among top-priority concerns.
CT17x20 is “timely,” Johnson believes.
“On the one hand, with Connecticut’s budget challenges it’s probably difficult to take on an initiative like this,” he says. But on the other hand, Connecticut must become more competitive with other states, he adds.
Paul S. Timpanelli, president and CEO of the Bridgeport Regional Business Council (BRBC), agrees with Johnson that this is an opportune time the CT17x20 initiative.
“I think we’ve made progress in the past few years. The trend is right,” Timpanelli says, noting that this is an election year. “So I think we can bring some attention to the matter.”
The issue of whether or not to support CT17x20 was brought before BRBC’s board in mid-April.
“The board voted to fully support it,” says Timpanelli.
“I think it’s critical for the future of Connecticut in terms of job growth. The state of our state in Connecticut is not good. We need a regulatory environment and a taxing environment that’s more friendly to businesses.”
Hopefully, the aspect of the CT17x20 effort to focus on elected officials will be beneficial, says Timpanelli.
“That’s part of the strategy, and we have to place this question much more in the mind of the average voter,” he says, adding, “Hopefully, it’s much more than a business initiative.”
“There are a number of things,” explains CBIA’s Brennan, “that individuals can do to support the CT20x17 campaign. The first step is to become familiar with and spread the campaign’s goals and objectives. Next, engaging in public discourse would be helpful.
“Attend legislative events in your district to engage with legislators and hold them accountable on economic issues,” says Brennan, who offers several ways for the average citizen to become involved. “Write a letter to the editor supporting efforts to improve our economic standing. Sign up for the CT20x17 campaign, subscribe to the campaign’s social media accounts and attend campaign events. Follow up with your legislators during legislative sessions to make sure they are supporting the goals of the campaign.”
Just talking with friends and family also will have an impact, he says.
“Share information about the campaign with family, friends, work colleagues, etc.,” says Brennan. He adds that one of the most crucial individual actions should not be overlooked.
“Register to vote, become knowledgeable about the candidates, and be sure to vote on Election Day,” he adds.
A website is currently being developed, and information about CT20x17 will be available on it soon, Brennan says.
New Haven Magazine