Cleveland-based KeyBank has closed on its acquisition of a significant portion of assets of Darien-based Laurel Road Bank.
The company said in a statement yesterday that it has completed its purchase of Laurel Road Bank’s digital loan service, which it first announced back in January for an undisclosed amount.
Laurel Road launched its student loan refinancing service in 2013 and has rapidly grown it to total more than $4 billion in loan originations to date. In 2018, the company introduced an online mortgage platform using the same lending technology to offer homebuyers and owners a streamlined digital application process. The Laurel Road brand will remain in place.
“Part of KeyBank’s strategy is to pair the best of the best in fintech with our industry expertise and scale. Now that the deal is officially closed, we’re thrilled to begin work with Laurel Road,” Jamie Warder, head of digital for KeyBank, said in a statement. “The three pillars we’ve outlined aim to expand our business and offer more customer segments a comprehensive, digitally-led suite of services, and Laurel Road is a pivotal piece of this growth plan.”
In acquiring Laurel Road, KeyBank continues its strategy of building targeted scale against defined client segments such as healthcare professionals, lawyers and graduate students.
With Laurel Road’s new platform, KeyBank will focus on expanding its national, digital-only lending capabilities by capitalizing on Laurel Road’s strategic partnerships and direct-to-market branding. The company also plans to boost KeyBank’s client experience through compelling digital tools and delivering a holistic banking experience to a targeted segment of consumers such as millennial professionals.
“We’re deeply proud of what we’ve built at Laurel Road and share in Jamie’s excitement to get to work integrating and growing our combined products and business,” Gary Lieberman, founder and chairman of Laurel Road Bank, said in a statement. “Laurel Road set out to deliver a simple yet superior lending experience for millennials at every financial milestone. As part of KeyBank, our capabilities and scale have even more potential, and together we’re committed to enhancing the digital financial experience for all customers.”
The deal leaves what’s left of Laurel Road Bank in an interesting situation.
Along with the purchase, approximately 140 Laurel Road employees will join KeyBank as part of the deal. Laurel Road had about 185 full-time equivalent jobs as of September 2018, according to the FDIC.
However, the acquisition did not come with Laurel Road Bank’s three branches in Darien, Rowayton and Fairfield.
Additionally, on the same day KeyBank’s acquisition closed, the Connecticut Department of Banking approved Laurel Road Bank’s request to change its name to DR Bank. The bank had only just changed its name from Darien Rowayton Bank to Laurel Road Bank in April 2018.
