Only six years ago, KeyBank was nowhere to be found in a ranking of the top 25 banks for lending to developers of affordable housing.
Last year, under the leadership of Angela Mago, the bank finished in the No. 2 spot, sandwiched between Citi at No. 1 and JP Morgan Chase at No. 3, according to Affordable Housing Finance. Key originated more than $5.1 billion in affordable-housing loans last year, up 38.1% even as some other lenders saw volume decline.
The next stop: No. 1, said Mago, president of Key Commercial Bank and KeyBank Real Estate Capital for the Cleveland-based company, which has assets of $187 billion. "But more importantly, over and above the statistics, it's really the impact you can make."
Based on feedback from community advocates, Key is working to expand access to credit in underserved communities. The bank's initiatives include a new practice that provides banking, investment, lending and other services to community development financial institutions.
The bank has ramped up its ability to syndicate investments in low-income housing tax credits, a critical piece of financing for many affordable-housing developers. Setting a goal of $1 billion in new equity originations, the bank has added people in originations, investor relations and fund management, as well as investing in technology, said Mago.
At the same time, Mago is driving growth in areas including commercial and real estate lending. Key Commercial Bank generated revenue of more than $1.64 billion in 2021.
Mago also has been serving as the executive sponsor of an effort to boost productivity for the bank's relationship managers. It includes greater use of data and digital tools, as well as figuring out ways to help managers spend more time with clients.
"This is a big commitment that we've made to tackle this," Mago said. "It's our way of saying our talent is our most important resource."
