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8-K - FORM 8-K - KEYCORP /NEW/ | l41644e8vk.htm |
EX-99.3 - EX-99.3 - KEYCORP /NEW/ | l41644exv99w3.htm |
EX-99.2 - EX-99.2 - KEYCORP /NEW/ | l41644exv99w2.htm |
Exhibit 99.1
News |
||
KeyCorp | ||
127 Public Square | ||
Cleveland, OH 44114 |
CONTACTS:
|
ANALYSTS | MEDIA | ||
Vernon L. Patterson | William C. Murschel | |||
216.689.0520 | 216.471.2885 | |||
Vernon_Patterson@KeyBank.com | William_C_Murschel@KeyBank.com | |||
Christopher F. Sikora | ||||
216.689.3133 | ||||
Chris_F_Sikora@KeyBank.com |
INVESTOR
|
KEY MEDIA | |
RELATIONS: www.key.com/ir
|
NEWSROOM: www.key.com/newsroom | |
FOR IMMEDIATE RELEASE |
KEYCORP REPORTS
FOURTH QUARTER NET INCOME OF $292 MILLION
2010 NET INCOME OF $413 MILLION
FOURTH QUARTER NET INCOME OF $292 MILLION
2010 NET INCOME OF $413 MILLION
| Net income from continuing operations of $292 million, or $.33 per common share, for the fourth quarter of 2010 | |
| Full year net income from continuing operations of $413 million, or $.47 per common share | |
| Net interest margin at 3.31% for the fourth quarter of 2010 | |
| Nonperforming loans down $304 million to 2.13% of period-end loans | |
| Nonperforming assets down $463 million | |
| Loan loss reserve at 3.20% of total period-end loans | |
| Reserve coverage ratio of nonperforming loans increased to 150% at December 31, 2010 | |
| Net charge-offs declined to $256 million, or 2.00% of average loan balances, for the fourth quarter of 2010 | |
| Tier 1 common equity and Tier 1 risk-based capital ratios estimated at 9.31% and 15.10%, respectively, at December 31, 2010 |
CLEVELAND, January 25, 2011 KeyCorp (NYSE: KEY) today announced fourth quarter net income
from continuing operations attributable to Key common shareholders of $292 million, or $.33 per
common share. These results compare to a net loss from continuing operations attributable to Key
common shareholders of $258 million, or $.30 per common share, for the fourth quarter of 2009. The
fourth quarter 2010 results reflect an improvement in pre-provision net revenue and lower credit
costs from the same period one-year ago. The fourth quarter 2009 results were negatively impacted
by a $756 million loan loss provision. Fourth quarter 2010 net income attributable to Key common
shareholders was $279 million compared to a net loss attributable to Key common shareholders of
$265 million for the same quarter one year ago.
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 2
January 25, 2011
Page 2
For 2010, Keys net income from continuing operations attributable to common shareholders was
$413 million, or $.47 per common share. Results for the current year compare to a net loss from
continuing operations attributable to Key common shareholders of $1.581 billion, or $2.27 per
common share, for 2009. The 2009 results were adversely impacted by an elevated loan loss
provision and write-offs of certain intangible assets. Net income attributable to Key common
shareholders for the year ended December 31, 2010, was $390 million compared to a net loss
attributable to Key common shareholders of $1.629 billion for the same period one year ago.
Keys fourth quarter performance represents a strong finish to the year. We continue to make
meaningful progress in both profitability and credit quality, said Chairman and Chief Executive
Officer Henry L. Meyer III. Furthermore, we are increasingly confident that the strategic actions
we have undertaken will continue to yield favorable results into 2011.
With three consecutive profitable quarters, and continued signs of increased economic
activity on the part of our clients, Key has clearly turned the corner and is positioned well to
compete in 2011, added Meyer. Our core financial measures strong capital, enhanced liquidity,
adequate loan loss reserves, as well as our exit from riskier lending categories represent a
firm foundation for profitability in the year ahead.
Meyer said he was particularly pleased with Keys improvement in credit quality metrics and
the Companys capital position. Credit quality continued to improve across the majority of loan
portfolios in both Key Community Bank and Key Corporate Bank, as nonperforming assets were down
$463 million and nonperforming loans decreased by $304 million from the previous quarter, and net
charge-offs declined to $256 million for the fourth quarter of 2010.
With respect to TARP repayment, Meyer stated: We are aware that certain of our
peer banks have recently repaid TARP. The Comprehensive Capital Assessment Plan we
submitted on January 7, 2011, included our proposal for repaying the TARP preferred
stock in a manner that we believe makes sense for Key and our shareholders. Repaying TARP
is a top priority for Key, but our patience has been appropriate because it has allowed us to
demonstrate improved financial performance and an increased stock price. Moreover,
given the strength of our capital and our improved risk profile and profitability,
it is our goal to repay TARP in a less dilutive manner than would have been achievable
if we repaid prior to undergoing the Federal Reserves Comprehensive Capital Assessment.
All of this is subject to obtaining requisite regulatory approvals.
At December 31, 2010, Keys estimated Tier 1 common equity and Tier 1 risk-based capital
ratios were 9.31% and 15.10%, compared to 8.61% and 14.30%, respectively, at September 30, 2010.
Keys strong capital and liquidity positions provide the Company with the ability to serve the
borrowing needs of our clients as the economy expands. The Company originated approximately $8.5
billion in new or renewed lending commitments to consumers and businesses during the quarter and
approximately $29.5 billion for the year ended December 31, 2010.
Meyer also noted that over the last two years, Key has opened 77 new branches and renovated
approximately 145 others, expanding Keys 14-state branch network to 1,033 branches. The Company
plans to build an additional 40 new branches in 2011. Key also recently announced that it scored
significantly higher than its four largest competitor banks in a third quarter 2010 customer
satisfaction survey conducted by the American Customer
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 3
January 25, 2011
Page 3
Satisfaction Index. Keys scores were
significantly better than bank industry scores across multiple dimensions, most notably Customer
Loyalty.
During the quarter, Key announced that Meyer will retire on May 1, 2011, and that Beth E.
Mooney has been elected President and Chief Operating Officer of KeyCorp and a member of KeyCorps
Board of Directors. Mooney will assume the additional role of Chairman and Chief Executive Officer
on May 1, 2011, and become the first woman CEO of a top 20 U.S. bank. Mooney, who has over 30
years of experience in retail banking, commercial lending, and real estate financing, was
previously Vice Chair of KeyCorp and head of Keys Community Bank business.
Key also announced the elections of William R. Koehler to President, Key Community Bank and
Christopher M. Gorman to President, Key Corporate Bank (previously known as Key
National Banking). Koehler has 20 years of experience in the financial services industry,
most recently as President of KeyBanks Great Lakes Region. In his new role, Koehler is responsible
for Keys businesses associated with its 14-state branch network, including retail banking, small-
and middle-market business banking, private banking, investment services and mortgage. Gorman was
previously the senior executive vice president and head of the now renamed Key Corporate Bank.
The following table shows Keys continuing and discontinued operating results for the
comparative quarters and for the years ended December 31, 2010, and 2009.
Results of Operations
Three months ended | Twelve months ended | |||||||||||||||||||
in millions, except per share amounts | 12-31-10 | 9-30-10 | 12-31-09 | 12-31-10 | 12-31-09 | |||||||||||||||
Summary of operations |
||||||||||||||||||||
Income (loss) from continuing operations attributable to Key |
$ | 333 | $ | 204 | $ | (217 | ) | $ | 577 | $ | (1,287 | ) | ||||||||
Income (loss) from discontinued operations, net of taxes (a) |
(13 | ) | 15 | (7 | ) | (23 | ) | (48 | ) | |||||||||||
Net income (loss) attributable to Key |
$ | 320 | $ | 219 | $ | (224 | ) | $ | 554 | $ | (1,335 | ) | ||||||||
Income (loss) from continuing operations attributable to Key |
$ | 333 | $ | 204 | $ | (217 | ) | $ | 577 | $ | (1,287 | ) | ||||||||
Less: Dividends on Series A Preferred Stock |
6 | 6 | 5 | 23 | 39 | |||||||||||||||
Noncash deemed dividend common shares exchanged for Series A Preferred Stock |
| | | | 114 | |||||||||||||||
Cash dividends on Series B Preferred Stock |
31 | 31 | 31 | 125 | 125 | |||||||||||||||
Amortization of discount on Series B Preferred Stock |
4 | 4 | 5 | 16 | 16 | |||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders |
292 | 163 | (258 | ) | 413 | (1,581 | ) | |||||||||||||
Income (loss) from discontinued operations, net of taxes (a) |
(13 | ) | 15 | (7 | ) | (23 | ) | (48 | ) | |||||||||||
Net income (loss) attributable to Key common shareholders |
$ | 279 | $ | 178 | $ | (265 | ) | $ | 390 | $ | (1,629 | ) | ||||||||
Per common share assuming dilution |
||||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders |
$ | .33 | $ | .19 | $ | (.30 | ) | $ | .47 | $ | (2.27 | ) | ||||||||
Income (loss) from discontinued operations, net of taxes (a) |
(.02 | ) | .02 | (.01 | ) | (.03 | ) | (.07 | ) | |||||||||||
Net income (loss) attributable to Key common shareholders (b) |
$ | .32 | $ | .20 | $ | (.30 | ) | $ | .44 | $ | (2.34 | ) | ||||||||
(a) | In September 2009, management made the decision to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank National Association. In April 2009, management made the decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base. As a result of these decisions, Key has accounted for these businesses as discontinued operations. The loss from discontinued operations for the year ended December 31, 2010, was primarily attributable to fair value adjustments related to the education lending securitization trusts. Included in the loss from discontinued operations for the year ended December 31, 2009, is a $23 million after-tax, or $.05 per common share, charge for intangible assets impairment related to Austin Capital Management. | |
(b) | Earnings per share may not foot due to rounding. |
SUMMARY OF CONTINUING OPERATIONS
Taxable-equivalent net interest income was $635 million for the fourth quarter of 2010, and
the net interest margin was 3.31%. These results compare to taxable-equivalent net interest income
of $637 million and a net interest margin of 3.04% for the fourth quarter of 2009. The increase in
the net interest margin is primarily attributable to lower funding costs. The
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 4
January 25, 2011
Page 4
Company continues to
experience an improvement in the mix of deposits by reducing the level of higher costing
certificates of deposit and growing lower costing transaction accounts. This benefit to the net
interest margin was partially offset by a lower level of average earning assets compared to the
same period one year ago resulting from pay downs on loans.
Compared to the third quarter of 2010, taxable-equivalent net interest income decreased by $12
million, and the net interest margin declined four basis points. The modest decline in the net
interest margin reflects the combined effect of hedge maturities and change in the mix of earning
assets, with average loan balances declining and average balances of lower yielding investment
securities increasing. These impacts were moderated by a continued decrease in the
total cost of
funds during this period due to the repricing of certificates of deposit and a continued overall
improved mix of deposits.
Keys noninterest income was $526 million for the fourth quarter of 2010, compared to $469
million for the year-ago quarter. Investment banking and capital markets income increased $110
million compared to the same period one-year ago. In the fourth quarter of 2009, the Company
incurred losses on certain real estate investments, recorded additional reserves on customer
derivative positions, and recorded a loss on certain commercial mortgage-backed securities. In
total, these amounted to a reduction of fee income of $87 million in the fourth quarter of 2009.
This compares to income of $18 million recorded in the fourth quarter of 2010 as a result of
improved credit quality. In addition, net gains from loan sales increased $34 million from the
fourth quarter of 2009, and the Company realized a gain of $28 million from the sale of Tuition
Management Systems in the fourth quarter of 2010. These gains were partially offset by decreases
of $86 million in net gains (losses) from principal investing (including results attributable to
noncontrolling interests), $12 million in service charges on deposit accounts, and $10 million in
operating lease income from the fourth quarter of 2009.
The major components of Keys fee-based income for the past five quarters are shown in the
following table.
Fee-based Income Major Components
in millions | 4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | |||||||||||||||
Trust and investment services income |
$ | 108 | $ | 110 | $ | 112 | $ | 114 | $ | 117 | ||||||||||
Service charges on deposit accounts |
70 | 75 | 80 | 76 | 82 | |||||||||||||||
Operating lease income |
42 | 41 | 43 | 47 | 52 | |||||||||||||||
Letter of credit and loan fees |
51 | 61 | 42 | 40 | 52 | |||||||||||||||
Corporate-owned life insurance income |
42 | 39 | 28 | 28 | 36 | |||||||||||||||
Electronic banking fees |
31 | 30 | 29 | 27 | 27 | |||||||||||||||
Insurance income |
12 | 15 | 19 | 18 | 16 | |||||||||||||||
Net gains (losses) from principal investing |
(6 | ) | 18 | 17 | 37 | 80 | ||||||||||||||
Investment banking and capital markets income (loss) |
63 | 42 | 31 | 9 | (47 | ) |
Compared to the third quarter of 2010, noninterest income increased by $40 million. The
increase resulted from a $28 million gain from the sale of Tuition Management Systems and a $21
million increase in investment banking and capital markets income, primarily attributable to a
positive adjustment to our customer derivative reserve. In addition, the Company sold several
investment securities during the quarter resulting in an increase of $11 million in net securities
gains. These increases were partially offset by a decrease of $24 million in net gains (losses)
from principal investing (including results attributable to noncontrolling interests).
Keys noninterest expense was $744 million for the fourth quarter of 2010, compared to $871
million for the same period last year. Key recorded a credit of $26 million to the provision for
losses on lending-related commitments during the fourth quarter of 2010,
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 5
January 25, 2011
Page 5
compared to a charge to
the provision of $27 million in the year-ago quarter. Also contributing to the decrease in
noninterest expense was a decline in employee benefits expense of $41 million as a result of lower
pension expense and medical claims expense. Additionally, in the fourth quarter of 2010, operating
lease expense was $22 million less and other real estate owned (OREO) expense was $15 million
less than the year-ago quarter.
Compared to the third quarter of 2010, noninterest expense increased by $8 million. Increases
in noninterest expense included $15 million in business services and professional fees, $6 million
in personnel expense, $6 million in OREO expense, and $7 million in various other miscellaneous
expenses. These increases were partially offset by decreases in the
provision for losses on lending-related commitments of $16 million and operating lease
expense of $12 million.
ASSET QUALITY
Keys provision for loan losses was a credit of $97 million for the fourth quarter of 2010,
compared to a charge of $756 million for the year-ago quarter and $94 million for the third quarter
of 2010. Keys allowance for loan losses was $1.6 billion, or 3.20% of total period-end loans, at
December 31, 2010, compared to 3.81% at September 30, 2010, and 4.31% at December 31, 2009.
Selected asset quality statistics for Key for each of the past five quarters are presented in
the following table.
Selected Asset Quality Statistics from Continuing Operations
dollars in millions | 4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | |||||||||||||||
Net loan charge-offs |
$ | 256 | $ | 357 | $ | 435 | $ | 522 | $ | 708 | ||||||||||
Net loan charge-offs to average loans |
2.00 | % | 2.69 | % | 3.18 | % | 3.67 | % | 4.64 | % | ||||||||||
Allowance for loan losses |
$ | 1,604 | $ | 1,957 | $ | 2,219 | $ | 2,425 | $ | 2,534 | ||||||||||
Allowance for credit losses (a) |
1,677 | 2,056 | 2,328 | 2,544 | 2,655 | |||||||||||||||
Allowance for loan losses to period-end loans |
3.20 | % | 3.81 | % | 4.16 | % | 4.34 | % | 4.31 | % | ||||||||||
Allowance for credit losses to period-end loans |
3.35 | 4.00 | 4.36 | 4.55 | 4.52 | |||||||||||||||
Allowance for loan losses to nonperforming loans |
150.19 | 142.64 | 130.30 | 117.43 | 115.87 | |||||||||||||||
Allowance for credit losses to nonperforming loans |
157.02 | 149.85 | 136.70 | 123.20 | 121.40 | |||||||||||||||
Nonperforming loans at period end |
$ | 1,068 | $ | 1,372 | $ | 1,703 | $ | 2,065 | $ | 2,187 | ||||||||||
Nonperforming assets at period end |
1,338 | 1,801 | 2,086 | 2,428 | 2,510 | |||||||||||||||
Nonperforming loans to period-end portfolio loans |
2.13 | % | 2.67 | % | 3.19 | % | 3.69 | % | 3.72 | % | ||||||||||
Nonperforming assets to period-end portfolio loans plus
OREO and other nonperforming assets |
2.66 | 3.48 | 3.88 | 4.31 | 4.25 |
(a) | Includes the allowance for loan losses plus the liability for credit losses on lending-related commitments. |
Net loan charge-offs for the quarter totaled $256 million, or 2.00%, of average loans.
These results compare to $708 million, or 4.64%, for the same period last year and $357 million, or
2.69%, for the previous quarter. Net loan charge-offs declined each quarter during 2010 and are at
their lowest level since the first quarter of 2008.
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 6
January 25, 2011
Page 6
Keys net loan charge-offs by loan type for each of the past five quarters are shown in the
following table.
Net Loan Charge-offs from Continuing Operations
dollars in millions | 4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | |||||||||||||||
Commercial, financial and agricultural |
$ | 80 | $ | 136 | $ | 136 | $ | 126 | $ | 218 | ||||||||||
Real estate commercial mortgage |
52 | 46 | 126 | 106 | 165 | |||||||||||||||
Real estate construction |
28 | 76 | 75 | 157 | 181 | |||||||||||||||
Commercial lease financing |
12 | 16 | 14 | 21 | 39 | |||||||||||||||
Total commercial loans |
172 | 274 | 351 | 410 | 603 | |||||||||||||||
Home equity Key Community Bank |
26 | 35 | 25 | 30 | 27 | |||||||||||||||
Home equity Other |
13 | 13 | 16 | 17 | 19 | |||||||||||||||
Marine |
17 | 12 | 19 | 38 | 33 | |||||||||||||||
Other |
28 | 23 | 24 | 27 | 26 | |||||||||||||||
Total consumer loans |
84 | 83 | 84 | 112 | 105 | |||||||||||||||
Total net loan charge-offs |
$ | 256 | $ | 357 | $ | 435 | $ | 522 | $ | 708 | ||||||||||
Net loan charge-offs to average loans
from continuing operations |
2.00 | % | 2.69 | % | 3.18 | % | 3.67 | % | 4.64 | % | ||||||||||
Net loan charge-offs from
discontinued operations education
lending business |
$ | 32 | $ | 22 | $ | 31 | $ | 36 | $ | 36 |
Compared to the third quarter of 2010, net loan charge-offs in the commercial loan
portfolio decreased by $102 million. The decrease was primarily attributable to a decline in the
commercial, financial and agricultural and the real estate construction loan portfolios. As
shown in the table on page 7, Keys exit loan portfolio accounted for $81 million, or 31.64%, of
Keys total net loan charge-offs for the fourth quarter of 2010. Net charge-offs in the exit loan
portfolio decreased by $24 million from the third quarter of 2010, primarily driven by an
improvement in the commercial lease financing portfolio.
At December 31, 2010, Keys nonperforming loans totaled $1.1 billion and represented 2.13% of
period-end portfolio loans, compared to 2.67% at September 30, 2010, and 3.72% at December 31,
2009. Nonperforming assets at December 31, 2010, totaled $1.3 billion and represented 2.66% of
portfolio loans and OREO and other nonperforming assets, compared to 3.48% at September 30, 2010,
and 4.25% at December 31, 2009. The following table illustrates the trend in Keys nonperforming
assets by loan type over the past five quarters.
Nonperforming Assets from Continuing Operations
dollars in millions | 4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | |||||||||||||||
Commercial, financial and agricultural |
$ | 242 | $ | 335 | $ | 489 | $ | 558 | $ | 586 | ||||||||||
Real estate commercial mortgage |
255 | 362 | 404 | 579 | 614 | |||||||||||||||
Real estate construction |
241 | 333 | 473 | 607 | 641 | |||||||||||||||
Commercial lease financing |
64 | 84 | 83 | 99 | 113 | |||||||||||||||
Total consumer loans |
266 | 258 | 254 | 222 | 233 | |||||||||||||||
Total nonperforming loans |
1,068 | 1,372 | 1,703 | 2,065 | 2,187 | |||||||||||||||
Nonperforming loans held for sale |
106 | 230 | 221 | 195 | 116 | |||||||||||||||
OREO and other nonperforming assets |
164 | 199 | 162 | 168 | 207 | |||||||||||||||
Total nonperforming assets |
$ | 1,338 | $ | 1,801 | $ | 2,086 | $ | 2,428 | $ | 2,510 | ||||||||||
Restructured loans accruing and nonaccruing (a) |
$ | 297 | $ | 360 | $ | 343 | $ | 323 | $ | 364 | ||||||||||
Restructured loans included in nonperforming loans (a) |
202 | 228 | 213 | 226 | 364 | |||||||||||||||
Nonperforming assets from discontinued operations
education lending business |
40 | 38 | 40 | 43 | 14 | |||||||||||||||
Nonperforming loans to period-end portfolio loans |
2.13 | % | 2.67 | % | 3.19 | % | 3.69 | % | 3.72 | % | ||||||||||
Nonperforming assets to period-end portfolio loans,
plus OREO and other nonperforming assets |
2.66 | 3.48 | 3.88 | 4.31 | 4.25 |
(a) | Restructured loans (i.e. troubled debt restructurings) are those for which Key, for reasons related to a borrowers financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance. |
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 7
January 25, 2011
Page 7
Nonperforming assets continued to decrease during the fourth quarter of 2010,
representing the fifth consecutive quarterly decline and now stand at their lowest level since the
third quarter of 2008. Most of the reduction during the fourth quarter came from nonperforming
loans in the commercial, financial and agricultural, the real estate commercial mortgage, and
the real estate construction portfolios. As shown in the following table, Keys exit loan
portfolio accounted for $210 million, or 15.70%, of Keys total nonperforming assets at December
31, 2010, compared to $290 million, or 16.10%, at September 30, 2010.
The following table shows the composition of Keys exit loan portfolio at December 31,
2010, and September 30, 2010, the net charge-offs recorded on this portfolio for the third and
fourth quarters of 2010, and the nonperforming status of these loans at December 31, 2010, and
September 30, 2010.
Exit Loan Portfolio from Continuing Operations
Balance | Change | Net Loan | Balance on | |||||||||||||||||||||||||
Outstanding | 12-31-10 vs. | Charge-offs | Nonperforming Status | |||||||||||||||||||||||||
in millions | 12-31-10 | 9-30-10 | 9-30-10 | 4Q10 | 3Q10 | 12-31-10 | 9-30-10 | |||||||||||||||||||||
Residential properties homebuilder |
$ | 113 | $ | 148 | $ | (35 | ) | $ | 16 | $ | 23 | $ | 66 | $ | 94 | |||||||||||||
Residential properties held for sale |
| 8 | (8 | ) | | | | 8 | ||||||||||||||||||||
Total residential properties |
113 | 156 | (43 | ) | 16 | 23 | 66 | 102 | ||||||||||||||||||||
Marine and RV floor plan |
166 | 225 | (59 | ) | 12 | 7 | 37 | 42 | ||||||||||||||||||||
Commercial lease financing (a) |
2,047 | 2,231 | (184 | ) | 20 | 47 | 46 | 88 | ||||||||||||||||||||
Total commercial loans |
2,326 | 2,612 | (286 | ) | 48 | 77 | 149 | 232 | ||||||||||||||||||||
Home equity Other |
666 | 707 | (41 | ) | 13 | 13 | 18 | 16 | ||||||||||||||||||||
Marine |
2,234 | 2,355 | (121 | ) | 17 | 12 | 42 | 41 | ||||||||||||||||||||
RV and other consumer |
162 | 172 | (10 | ) | 3 | 3 | 1 | 1 | ||||||||||||||||||||
Total consumer loans |
3,062 | 3,234 | (172 | ) | 33 | 28 | 61 | 58 | ||||||||||||||||||||
Total exit loans in loan portfolio |
$ | 5,388 | $ | 5,846 | $ | (458 | ) | $ | 81 | $ | 105 | $ | 210 | $ | 290 | |||||||||||||
Discontinued operations education
lending business (not included in exit loans above) (b) |
$ | 6,466 | $ | 6,651 | $ | (185 | ) | $ | 32 | $ | 22 | $ | 39 | $ | 38 |
(a) | Includes the business aviation, commercial vehicle, office products, construction and industrial leases, and Canadian lease financing portfolios; and all remaining balances related to lease in, lease out; sale in, sale out; service contract leases; and qualified technological equipment leases. | |
(b) | Includes loans in Keys education loan securitization trusts consolidated upon the adoption of new consolidation accounting guidance on January 1, 2010. |
CAPITAL
Keys risk-based capital ratios included in the following table continued to exceed all
well-capitalized regulatory benchmarks at December 31, 2010.
Capital Ratios
12-31-10 | 9-30-10 | 6-30-10 | 3-31-10 | 12-31-09 | ||||||||||||||||
Tier 1 common equity (a), (b) |
9.31 | % | 8.61 | % | 8.07 | % | 7.51 | % | 7.50 | % | ||||||||||
Tier 1 risk-based capital (a) |
15.10 | 14.30 | 13.62 | 12.92 | 12.75 | |||||||||||||||
Total risk-based capital (a) |
19.05 | 18.22 | 17.80 | 17.07 | 16.95 | |||||||||||||||
Tangible common equity to tangible assets (b) |
8.19 | 8.00 | 7.65 | 7.37 | 7.56 |
(a) | 12-31-10 ratio is estimated. | |
(b) | The table entitled GAAP to Non-GAAP Reconciliations presents the computations of certain financial measures related to tangible common equity and Tier 1 common equity. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. |
As shown in the preceding table, at December 31, 2010, Key had an estimated Tier 1 common
equity ratio of 9.31%, an estimated Tier 1 risk-based capital ratio of 15.10%, and a tangible
common equity ratio of 8.19%. Since December 31, 2009, Keys Tier 1 common
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 8
January 25, 2011
Page 8
equity ratio has
increased 181 basis points as a result of returning to profitability and a lower level of
risk-weighted assets.
The changes in Keys outstanding common shares over the past five quarters are summarized in
the following table.
Summary of Changes in Common Shares Outstanding
in thousands | 4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | |||||||||||||||
Shares outstanding at beginning of period |
880,328 | 880,515 | 879,052 | 878,535 | 878,559 | |||||||||||||||
Shares reissued (returned) under employee benefit plans |
280 | (187 | ) | 1,463 | 517 | (24 | ) | |||||||||||||
Shares outstanding at end of period |
880,608 | 880,328 | 880,515 | 879,052 | 878,535 | |||||||||||||||
During the fourth quarter of 2010, Key made a $31 million cash dividend payment to the
U.S. Treasury Department as a participant in the U.S. Treasurys Capital Purchase Program. During
2010 and 2009, Key made four quarterly dividend payments aggregating $125 million each year to the
U.S. Treasury Department.
LINE OF BUSINESS RESULTS
The following table shows the contribution made by each major business group to Keys
taxable-equivalent revenue from continuing operations and income (loss) from continuing operations
attributable to Key for the periods presented. The specific lines of business that comprise each
of the major business groups are described under the heading Line of Business Descriptions.
During the first quarter of 2010, Key realigned its reporting structure for its business groups.
Prior to 2010, Consumer Finance consisted mainly of portfolios that were identified as exit or
run-off portfolios and were included in the Key Corporate Bank segment (previously known as Key
National Banking). Effective for all periods presented, Key is reflecting the results of these
exit portfolios in Other Segments. The automobile dealer floor plan business, previously included
in Consumer Finance, has been realigned with the Commercial Banking line of business within the Key
Community Bank segment. In addition, other previously identified exit portfolios included in the
Key Corporate Bank segment have been moved to Other Segments. For more detailed financial
information pertaining to each business group and its respective lines of business, see the tables
at the end of this release.
Major Business Groups
Percent change 4Q10 vs. | ||||||||||||||||||||
dollars in millions | 4Q10 | 3Q10 | 4Q09 | 3Q10 | 4Q09 | |||||||||||||||
Revenue from continuing operations (TE) |
||||||||||||||||||||
Key Community Bank |
$ | 601 | $ | 601 | $ | 627 | | (4.1 | )% | |||||||||||
Key Corporate Bank |
464 | 430 | 340 | 7.9 | % | 36.5 | ||||||||||||||
Other Segments |
78 | 103 | 130 | (24.3 | ) | (40.0 | ) | |||||||||||||
Total Segments |
1,143 | 1,134 | 1,097 | .8 | 4.2 | |||||||||||||||
Reconciling Items |
18 | (1 | ) | 9 | N/M | 100.0 | ||||||||||||||
Total |
$ | 1,161 | $ | 1,133 | $ | 1,106 | 2.5 | % | 5.0 | % | ||||||||||
Income (loss) from continuing operations |
||||||||||||||||||||
attributable to Key |
||||||||||||||||||||
Key Community Bank |
$ | 61 | $ | 57 | $ | (40 | ) | 7.0 | % | N/M | ||||||||||
Key Corporate Bank |
302 | 130 | (213 | ) | 132.3 | N/M | ||||||||||||||
Other Segments |
(13 | ) | 19 | (57 | ) | (168.4 | ) | N/M | ||||||||||||
Total Segments |
350 | 206 | (310 | ) | 69.9 | N/M | ||||||||||||||
Reconciling Items |
(17 | ) | (2 | ) | 93 | N/M | (118.3 | )% | ||||||||||||
Total |
$ | 333 | $ | 204 | $ | (217 | ) | 63.2 | % | N/M | ||||||||||
TE = Taxable Equivalent, N/M = Not Meaningful |
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 9
January 25, 2011
Page 9
Key Community Bank
Percent change 4Q10 vs. | ||||||||||||||||||||
dollars in millions | 4Q10 | 3Q10 | 4Q09 | 3Q10 | 4Q09 | |||||||||||||||
Summary of operations |
||||||||||||||||||||
Net interest income (TE) |
$ | 395 | $ | 404 | $ | 429 | (2.2) | % | (7.9 | )% | ||||||||||
Noninterest income |
206 | 197 | 198 | 4.6 | 4.0 | |||||||||||||||
Total revenue (TE) |
601 | 601 | 627 | | (4.1 | ) | ||||||||||||||
Provision for loan losses |
74 | 75 | 230 | (1.3 | ) | (67.8 | ) | |||||||||||||
Noninterest expense |
456 | 458 | 489 | (.4 | ) | (6.7 | )% | |||||||||||||
Income (loss) before income taxes (TE) |
71 | 68 | (92 | ) | 4.4 | N/M | ||||||||||||||
Allocated income taxes and TE adjustments |
10 | 11 | (52 | ) | (9.1 | ) | N/M | |||||||||||||
Net income (loss) attributable to Key |
$ | 61 | $ | 57 | $ | (40 | ) | 7.0 | % | N/M | ||||||||||
Average balances |
||||||||||||||||||||
Loans and leases |
$ | 26,437 | $ | 26,779 | $ | 28,321 | (1.3) | % | (6.7 | )% | ||||||||||
Total assets |
29,822 | 30,004 | 31,048 | (.6 | ) | (3.9 | ) | |||||||||||||
Deposits |
48,143 | 48,703 | 52,640 | (1.1 | ) | (8.5 | ) | |||||||||||||
Assets under management at period end |
$ | 18,788 | $ | 17,816 | $ | 17,709 | 5.5 | % | 6.1 | % | ||||||||||
TE = Taxable Equivalent, N/M = Not Meaningful |
Additional Key Community Bank Data | Percent change 4Q10 vs. | |||||||||||||||||||
dollars in millions | 4Q10 | 3Q10 | 4Q09 | 3Q10 | 4Q09 | |||||||||||||||
Average deposits outstanding |
||||||||||||||||||||
NOW and money market deposit accounts |
$ | 20,513 | $ | 20,124 | $ | 17,931 | 1.9 | % | 14.4 | % | ||||||||||
Savings deposits |
1,863 | 1,872 | 1,784 | (.5 | ) | 4.4 | ||||||||||||||
Certificates of deposit ($100,000 or more) |
4,885 | 5,449 | 8,165 | (10.4 | ) | (40.2 | ) | |||||||||||||
Other time deposits |
8,638 | 9,596 | 13,708 | (10.0 | ) | (37.0 | ) | |||||||||||||
Deposits in foreign office |
421 | 368 | 529 | 14.4 | (20.4 | ) | ||||||||||||||
Noninterest-bearing deposits |
11,823 | 11,294 | 10,523 | 4.7 | 12.4 | |||||||||||||||
Total deposits |
$ | 48,143 | $ | 48,703 | $ | 52,640 | (1.1) | % | (8.5 | )% | ||||||||||
Home equity loans |
||||||||||||||||||||
Average balance |
$ | 9,582 | $ | 9,709 | $ | 10,101 | ||||||||||||||
Weighted-average loan-to-value ratio (at
date of origination) |
70 | % | 70 | % | 70 | % | ||||||||||||||
Percent first lien positions |
53 | 52 | 53 | |||||||||||||||||
Other data |
||||||||||||||||||||
Branches |
1,033 | 1,029 | 1,007 | |||||||||||||||||
Automated teller machines |
1,531 | 1,522 | 1,495 | |||||||||||||||||
Key Community Bank Summary of Operations
Key Community Bank recorded net income attributable to Key of $61 million for the fourth
quarter of 2010, compared to a net loss attributable to Key of $40 million for the year-ago
quarter. A substantial decrease in the provision for loan losses was the main contributor to the
improvement in the fourth quarter of 2010.
Taxable-equivalent net interest income declined by $34 million, or 8%, from the fourth quarter
of 2009, due primarily to a decline in average deposits of $4 billion, or 9%. The mix of deposits
continues to change from the year-ago quarter as higher-costing certificates of deposit originated
in prior years mature, partially offset by growth in noninterest-bearing deposits and NOW and money
market savings accounts. Average earning assets also decreased by $2 billion, or 7%, from the
year-ago quarter.
Noninterest income increased by $8 million, or 4%, from the year-ago quarter, due to higher
income from mortgage loan sale gains, electronic banking fees, trust and investment services, and a
reduction in the provision for credit losses from client derivatives. These factors were partially
offset by the anticipated lower service charges on deposits from the implementation of Regulation E
which was consistent with Keys expectations.
The provision for loan losses declined by $156 million, or 68%, compared to the fourth quarter
of 2009 due to improving economic conditions resulting in lower net charge-offs and nonperforming
loans from the same period one year ago.
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 10
January 25, 2011
Page 10
Noninterest expense declined by $33 million, or 7%, from the year-ago quarter. The decrease
was driven by reductions in personnel expense, the provision for losses on lending-related
commitments, FDIC deposit insurance premiums, and corporate allocated costs. These improvements
were partially offset by increased business services and professional fees, reflecting the cost of
our third-party mortgage operations.
Key Corporate Bank
Percent change 4Q10 vs. | ||||||||||||||||||||
dollars in millions | 4Q10 | 3Q10 | 4Q09 | 3Q10 | 4Q09 | |||||||||||||||
Summary of operations |
||||||||||||||||||||
Net interest income (TE) |
$ | 206 | $ | 201 | $ | 208 | 2.5 | % | (1.0 | )% | ||||||||||
Noninterest income |
258 | 229 | 132 | 12.7 | 95.5 | |||||||||||||||
Total revenue (TE) |
464 | 430 | 340 | 7.9 | 36.5 | |||||||||||||||
Provision for loan losses |
(263 | ) | (25 | ) | 382 | N/M | (168.8 | ) | ||||||||||||
Noninterest expense |
249 | 248 | 300 | .4 | (17.0 | ) | ||||||||||||||
Income (loss) before income taxes (TE) |
478 | 207 | (342 | ) | 130.9 | N/M | ||||||||||||||
Allocated income taxes and TE adjustments |
177 | 77 | (130 | ) | 129.9 | N/M | ||||||||||||||
Net income (loss) |
301 | 130 | (212 | ) | 131.5 | N/M | ||||||||||||||
Less: Net income (loss) attributable to
noncontrolling interests |
(1 | ) | | 1 | N/M | (200.0 | )% | |||||||||||||
Net income (loss) attributable to Key |
$ | 302 | $ | 130 | $ | (213 | ) | 132.3 | % | N/M | ||||||||||
Average balances |
||||||||||||||||||||
Loans and leases |
$ | 18,601 | $ | 19,534 | $ | 24,011 | (4.8) | % | (22.5 | )% | ||||||||||
Loans held for sale |
253 | 380 | 431 | (33.4 | ) | (41.3 | ) | |||||||||||||
Total assets |
22,602 | 23,765 | 28,253 | (4.9 | ) | (20.0 | ) | |||||||||||||
Deposits |
12,961 | 11,779 | 13,257 | 10.0 | (2.2 | ) | ||||||||||||||
Assets under management at period end |
$ | 41,027 | $ | 41,902 | $ | 49,230 | (2.1) | % | (16.7 | )% |
TE = Taxable Equivalent, N/M = Not Meaningful |
Key Corporate Bank Summary of Operations
Key Corporate Bank recorded net income attributable to Key of $302 million for the fourth
quarter of 2010, compared to a net loss attributable to Key of $213 million for the same period one
year ago. This improvement in the fourth quarter of 2010 was a result of a substantial decrease in
the provision for loan losses.
Taxable-equivalent net interest income decreased by $2 million, or 1%, compared to the fourth
quarter of 2009, primarily due to lower earning assets, partially offset by improved earning asset
yields and an increase in loan-related interest fees. Average earning assets decreased by $5
billion, or 23%, from the year-ago quarter.
Noninterest income increased by $126 million, or 95%, from the fourth quarter of 2009.
Investment banking and capital markets income increased $104 million. The fourth quarter of 2009
included a $78 million charge related to changes in the fair values of certain real estate
investments compared to a charge of $1 million in the fourth quarter of 2010. Also contributing to
the improvement in noninterest income was the $28 million gain from the sale of Tuition Management
Systems and an increase of $17 million in net gains from loan sales. These gains were partially
offset by decreases in trust and investment services income of $13 million and operating lease
revenue of $6 million.
The provision for loan losses in the fourth quarter of 2010 was a credit of $263 million
compared to a charge of $382 million for the same period one year ago. Key Corporate Bank
continued to experience improved asset quality for the fifth quarter in a row.
Noninterest expense decreased by $51 million, or 17%, from the fourth quarter of 2009 as
a result of a credit of $18 million to the provision for losses on lending-
related commitments compared to a charge of $14 million in the year-ago quarter. OREO expense
and operating
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 11
January 25, 2011
Page 11
lease expense also declined from the fourth quarter of 2009. These improvements were
partially offset by an increase in various other miscellaneous expenses.
Other Segments
Other Segments consist of Corporate Treasury, Keys Principal Investing unit and various exit
portfolios that previously were included within the Key Corporate Bank segment. These exit
portfolios were moved to Other Segments during the first quarter of 2010. Prior periods have been
adjusted to conform to the current reporting of the financial information for each segment. Other
Segments generated a net loss attributable to Key of $13 million for the fourth quarter of 2010,
compared to a net loss attributable to Key of $57 million for the same period last year. These
results reflect net losses from principal investing (including results attributable to
noncontrolling interests) of $5 million compared to net gains from principal investing (including
results attributable to noncontrolling interests) of $80 million in the fourth quarter of 2009.
This decline was partially offset by a decrease in the provision for loan losses of $43 million.
Line of Business Descriptions
Key Community Bank
Regional Banking provides individuals with branch-based deposit and investment products, personal
finance services and loans, including residential mortgages, home equity and various types of
installment loans. This line of business also provides small businesses with deposit, investment
and credit products, and business advisory services.
Regional Banking also offers financial, estate and retirement planning, and asset management
services to assist high-net-worth clients with their banking, trust, portfolio management,
insurance, charitable giving and related needs.
Commercial Banking provides midsize businesses with products and services that include commercial
lending, cash management, equipment leasing, investment and employee benefit programs, succession
planning, access to capital markets, derivatives and foreign exchange.
Key Corporate Bank
Real Estate Capital and Corporate Banking Services consists of two business units, Real Estate Capital and Corporate Banking Services.
Real Estate Capital is a national business that provides construction and interim lending,
permanent debt placements and servicing, equity and investment banking, and other commercial
banking products and services to developers, brokers and owner-investors. This unit deals
primarily with nonowner-occupied properties (i.e., generally properties in which at least 50% of
the debt service is provided by rental income from nonaffiliated third parties). Real Estate
Capital emphasizes providing clients with finance solutions through access to the capital markets.
Corporate Banking Services provides cash management, interest rate derivatives, and foreign
exchange products and services to clients served by both the Key Community Bank and Key Corporate
Bank groups. Through its Public Sector and Financial Institutions businesses, Corporate Banking
Services also provides a full array of commercial banking products and services to government and
not-for-profit entities and community banks. A variety of cash management services are provided
through the Global Treasury Management unit.
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 12
January 25, 2011
Page 12
Equipment Finance meets the equipment leasing needs of companies worldwide and provides equipment
manufacturers, distributors and resellers with financing options for their clients. Lease
financing receivables and related revenues are assigned to other lines of business (primarily
Institutional and Capital Markets and Commercial Banking) if those businesses are principally
responsible for maintaining the relationship with the client.
Institutional and Capital Markets, through its KeyBanc Capital Markets unit, provides commercial
lending, treasury management, investment banking, derivatives, foreign exchange, equity and debt
underwriting and trading, and syndicated finance products and services to large corporations and
middle-market companies.
Institutional and Capital Markets, through its Victory Capital Management unit, also manages or
offers advice regarding investment portfolios for a national client base, including corporations,
labor unions, not-for-profit organizations, governments and individuals. These portfolios may be
managed in separate accounts, common funds or the Victory family of mutual funds.
Cleveland-based KeyCorp (NYSE: KEY) is one of the nations largest bank-based financial
services companies, with assets of approximately $92 billion at December 31, 2010. Key companies
provide investment management, retail and commercial banking, and investment banking products and
services to individuals and companies throughout the United States and, for certain businesses,
internationally. In 2010, KeyBank scored significantly higher than its four largest competitor
banks in a customer satisfaction survey conducted by the American Customer Satisfaction Index,
scoring significantly better than bank industry scores across multiple dimensions, most notably
Customer Loyalty. In 2009, KeyBank was awarded its seventh consecutive Outstanding rating for
economic development achievements under the Community Reinvestment Act, the only national bank
among the 50 largest in the United States to achieve this distinction from the Office of the
Comptroller of the Currency. Key also has been recognized for excellence in numerous areas of the
multi-channel customer banking experience, including Corporate Insights 2009 and 2010 editions of
Bank Monitor for online service. For more information about Key, visit https://www.key.com/.
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 13
January 25, 2011
Page 13
Notes to Editors:
A live Internet broadcast of KeyCorps conference call to discuss quarterly results and currently
anticipated earnings trends and to answer analysts questions can be accessed through the Investor
Relations section at https://www.key.com/ir at 9:00 a.m. ET, on Tuesday, January 25, 2011.
An audio replay of the call will be available through February 1, 2011.
For up-to-date company information, media contacts and facts and figures about Keys lines of
business, visit our Media Newsroom at https://www.key.com/newsroom.
This earnings release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements about Keys financial condition,
results of operations, earnings outlook, asset quality trends and profitability. Forward-looking
statements are not historical facts but instead represent only managements current expectations
and forecasts regarding future events, many of which, by their nature, are inherently uncertain and
outside of Keys control. Keys actual results and financial condition may differ, possibly
materially, from the anticipated results and financial condition indicated in these forward-looking
statements. Factors that could cause Keys actual results to differ materially from those
described in the forward-looking statements can be found in Keys Annual Report on Form 10-K for
the year ended December 31, 2009 and Quarterly Reports on Form 10-Q for the periods ended March 31,
2010, June 30, 2010, and September 30, 2010, which have been filed with the Securities and Exchange
Commission and are available on Keys website (www.key.com) and on the Securities and
Exchange Commissions website (www.sec.gov). Forward-looking statements are not guarantees
of future performance and should not be relied upon as representing managements views as of any
subsequent date. Key does not undertake any obligation to update the forward-looking statements to
reflect the impact of circumstances or events that may arise after the date of the forward-looking
statements.
*****
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 14
January 25, 2011
Page 14
Financial Highlights
(dollars in millions, except per share amounts)
(dollars in millions, except per share amounts)
Three months ended | ||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | ||||||||||
Summary of operations |
||||||||||||
Net interest income (TE) |
$ | 635 | $ | 647 | $ | 637 | ||||||
Noninterest income |
526 | 486 | 469 | |||||||||
Total revenue (TE) |
1,161 | 1,133 | 1,106 | |||||||||
Provision for loan losses |
(97 | ) | 94 | 756 | ||||||||
Noninterest expense |
744 | 736 | 871 | |||||||||
Income (loss) from continuing operations attributable to Key |
333 | 204 | (217 | ) | ||||||||
Income (loss) from discontinued operations, net of taxes (b) |
(13 | ) | 15 | (7 | ) | |||||||
Net income (loss) attributable to Key |
320 | 219 | (224 | ) | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders |
$ | 292 | $ | 163 | $ | (258 | ) | |||||
Income (loss) from discontinued operations, net of taxes (b) |
(13 | ) | 15 | (7 | ) | |||||||
Net income (loss) attributable to Key common shareholders |
279 | 178 | (265 | ) | ||||||||
Per common share |
||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders |
$ | .33 | $ | .19 | $ | (.30 | ) | |||||
Income (loss) from discontinued operations, net of taxes (b) |
(.02 | ) | .02 | (.01 | ) | |||||||
Net income (loss) attributable to Key common shareholders |
.32 | .20 | (.30 | ) | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders assuming dilution |
.33 | .19 | (.30 | ) | ||||||||
Income (loss) from discontinued operations, net of taxes assuming dilution (b) |
(.02 | ) | .02 | (.01 | ) | |||||||
Net income (loss) attributable to Key common shareholders assuming dilution |
.32 | .20 | (.30 | ) | ||||||||
Cash dividends paid |
.01 | .01 | .01 | |||||||||
Book value at period end |
9.52 | 9.54 | 9.04 | |||||||||
Tangible book value at period end |
8.45 | 8.46 | 7.94 | |||||||||
Market price at period end |
8.85 | 7.96 | 5.55 | |||||||||
Performance ratios |
||||||||||||
From continuing operations: |
||||||||||||
Return on average total assets |
1.53 | % | .93 | % | (.94 | )% | ||||||
Return on average common equity |
13.71 | 7.82 | (12.60 | ) | ||||||||
Net interest margin (TE) |
3.31 | 3.35 | 3.04 | |||||||||
From consolidated operations: |
||||||||||||
Return on average total assets |
1.36 | % | .93 | % | (.93 | )% | ||||||
Return on average common equity |
13.10 | 8.54 | (12.94 | ) | ||||||||
Net interest margin (TE) |
3.22 | 3.26 | 3.00 | |||||||||
Loan to deposit (d) |
90.30 | 91.80 | 97.30 | |||||||||
Capital ratios at period end |
||||||||||||
Key shareholders equity to assets |
12.10 | % | 11.84 | % | 11.43 | % | ||||||
Tangible Key shareholders equity to tangible assets |
11.20 | 10.93 | 10.50 | |||||||||
Tangible common equity to tangible assets (a) |
8.19 | 8.00 | 7.56 | |||||||||
Tier 1 common equity (a), (c) |
9.31 | 8.61 | 7.50 | |||||||||
Tier 1 risk-based capital (c) |
15.10 | 14.30 | 12.75 | |||||||||
Total risk-based capital (c) |
19.05 | 18.22 | 16.95 | |||||||||
Leverage (c) |
12.92 | 12.53 | 11.72 | |||||||||
Asset quality from continuing operations |
||||||||||||
Net loan charge-offs |
$ | 256 | $ | 357 | $ | 708 | ||||||
Net loan charge-offs to average loans |
2.00 | % | 2.69 | % | 4.64 | % | ||||||
Allowance for loan losses |
$ | 1,604 | $ | 1,957 | $ | 2,534 | ||||||
Allowance for credit losses |
1,677 | 2,056 | 2,655 | |||||||||
Allowance for loan losses to period-end loans |
3.20 | % | 3.81 | % | 4.31 | % | ||||||
Allowance for credit losses to period-end loans |
3.35 | 4.00 | 4.52 | |||||||||
Allowance for loan losses to nonperforming loans |
150.19 | 142.64 | 115.87 | |||||||||
Allowance for credit losses to nonperforming loans |
157.02 | 149.85 | 121.40 | |||||||||
Nonperforming loans at period end |
$ | 1,068 | $ | 1,372 | $ | 2,187 | ||||||
Nonperforming assets at period end |
1,338 | 1,801 | 2,510 | |||||||||
Nonperforming loans to period-end portfolio loans |
2.13 | % | 2.67 | % | 3.72 | % | ||||||
Nonperforming assets to period-end portfolio loans plus |
||||||||||||
OREO and other nonperforming assets |
2.66 | 3.48 | 4.25 | |||||||||
Trust and brokerage assets |
||||||||||||
Assets under management |
$ | 59,815 | $ | 59,718 | $ | 66,939 | ||||||
Nonmanaged and brokerage assets |
28,069 | 26,913 | 27,190 | |||||||||
Other data |
||||||||||||
Average full-time equivalent employees |
15,424 | 15,584 | 15,973 | |||||||||
Branches |
1,033 | 1,029 | 1,007 | |||||||||
Taxable-equivalent adjustment |
$ | 6 | $ | 7 | $ | 7 |
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 15
January 25, 2011
Page 15
Financial Highlights (continued)
(dollars in millions, except per share amounts)
(dollars in millions, except per share amounts)
Twelve months ended | ||||||||
12-31-10 | 12-31-09 | |||||||
Summary of operations |
||||||||
Net interest income (TE) |
$ | 2,537 | $ | 2,406 | ||||
Noninterest income |
1,954 | 2,035 | ||||||
Total revenue (TE) |
4,491 | 4,441 | ||||||
Provision for loan losses |
638 | 3,159 | ||||||
Noninterest expense |
3,034 | 3,554 | ||||||
Income (loss) from continuing operations attributable to Key |
577 | (1,287 | ) | |||||
Income (loss) from discontinued operations, net of taxes (b) |
(23 | ) | (48 | ) | ||||
Net income (loss) attributable to Key |
554 | (1,335 | ) | |||||
Income (loss) from continuing operations attributable to Key common shareholders |
$ | 413 | $ | (1,581 | ) | |||
Income (loss) from discontinued operations, net of taxes (b) |
(23 | ) | (48 | ) | ||||
Net income (loss) attributable to Key common shareholders |
390 | (1,629 | ) | |||||
Per common share |
||||||||
Income (loss) from continuing operations attributable to Key common shareholders |
$ | .47 | $ | (2.27 | ) | |||
Income (loss) from discontinued operations, net of taxes (b) |
(.03 | ) | (.07 | ) | ||||
Net income (loss) attributable to Key common shareholders |
.45 | (2.34 | ) | |||||
Income (loss) from continuing operations attributable to Key common shareholders assuming
dilution |
.47 | (2.27 | ) | |||||
Income (loss) from discontinued operations, net of taxes assuming dilution (b) |
(.03 | ) | (.07 | ) | ||||
Net income (loss) attributable to Key common shareholders assuming dilution |
.44 | (2.34 | ) | |||||
Cash dividends paid |
.04 | .0925 | ||||||
Performance ratios |
||||||||
From continuing operations: |
||||||||
Return on average total assets |
.66 | % | (1.35) | % | ||||
Return on average common equity |
5.06 | (19.00 | ) | |||||
Net interest margin (TE) |
3.26 | 2.83 | ||||||
From consolidated operations: |
||||||||
Return on average total assets |
.59 | % | (1.34) | % | ||||
Return on average common equity |
4.78 | (19.62 | ) | |||||
Net interest margin (TE) |
3.16 | 2.81 | ||||||
Asset quality from continuing operations |
||||||||
Net loan charge-offs |
$ | 1,570 | $ | 2,257 | ||||
Net loan charge-offs to average loans |
2.91 | % | 3.40 | % | ||||
Other data |
||||||||
Average full-time equivalent employees |
15,610 | 16,698 | ||||||
Taxable-equivalent adjustment |
$ | 26 | $ | 26 |
(a) | The following table entitled GAAP to Non-GAAP Reconciliations presents the computations of certain financial measures related to tangible common equity and Tier 1 common equity. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. | |
(b) | In September 2009, management made the decision to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank National Association. In April 2009, management made the decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base. As a result of these decisions, Key has accounted for these businesses as discontinued operations. | |
(c) | 12-31-10 ratio is estimated. | |
(d) | Ending balances; loans & loans held for sale (excluding securitized loans) to deposits (excluding foreign branch). |
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 16
January 25, 2011
Page 16
GAAP to Non-GAAP Reconciliations
(dollars in millions, except per share amounts)
(dollars in millions, except per share amounts)
The table below presents the computations of certain financial measures related to tangible common
equity and Tier 1 common equity. The tangible common equity ratio has become a focus of some
investors, and management believes that this ratio may assist investors in analyzing Keys capital
position absent the effects of intangible assets and preferred stock. Traditionally, the banking
regulators have assessed bank and bank holding company capital adequacy based on both the amount
and composition of capital, the calculation of which is prescribed in federal banking regulations.
As a result of the Supervisory Capital Assessment Program, the Federal Reserve has focused its
assessment of capital adequacy on a component of Tier 1 capital, known as Tier 1 common equity.
Because the Federal Reserve has long indicated that voting common shareholders equity (essentially
Tier 1 capital less preferred stock, qualifying capital securities and noncontrolling interests in
subsidiaries) generally should be the dominant element in Tier 1 capital, such a focus is
consistent with existing capital adequacy guidelines and does not imply a new or ongoing capital
standard.
Because the Tier 1 common equity is neither formally defined by GAAP nor prescribed in amount by
federal banking regulations, this measure is considered to be a non-GAAP financial measure. Since
analysts and banking regulators may assess Keys capital adequacy using tangible common equity and
Tier 1 common equity, management believes it is useful to provide investors the ability to assess
Keys capital adequacy on these same bases. The table also reconciles the GAAP performance
measures to the corresponding non-GAAP measures.
The table also shows the computation for pre-provision net revenue, which is not formally defined
by GAAP. Management believes that eliminating the effects of provision for loan losses facilitates
the analysis of results by presenting them on a more comparable basis.
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and
are not audited. To mitigate these limitations, Key has procedures in place to ensure that these
measures are calculated using the appropriate GAAP or regulatory components and to ensure that
Keys performance is properly reflected to facilitate period-to-period comparisons. Although these
non-GAAP financial measures are frequently used by investors in the evaluation of a company, they
have limitations as analytical tools, and should not be considered in isolation, or as a substitute
for analyses of results as reported under GAAP.
Three months ended | ||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | ||||||||||
Tangible common equity to tangible assets at period end |
||||||||||||
Key shareholders equity (GAAP) |
$ | 11,117 | $ | 11,134 | $ | 10,663 | ||||||
Less: Intangible assets |
938 | 956 | 967 | |||||||||
Preferred Stock, Series B |
2,446 | 2,442 | 2,430 | |||||||||
Preferred Stock, Series A |
291 | 291 | 291 | |||||||||
Tangible common equity (non-GAAP) |
$ | 7,442 | $ | 7,445 | $ | 6,975 | ||||||
Total assets (GAAP) |
$ | 91,843 | $ | 94,043 | $ | 93,287 | ||||||
Less: Intangible assets |
938 | 956 | 967 | |||||||||
Tangible assets (non-GAAP) |
$ | 90,905 | $ | 93,087 | $ | 92,320 | ||||||
Tangible common equity to tangible assets ratio (non-GAAP) |
8.19 | % | 8.00 | % | 7.56 | % | ||||||
Tier 1 common equity at period end |
||||||||||||
Key shareholders equity (GAAP) |
$ | 11,117 | $ | 11,134 | $ | 10,663 | ||||||
Qualifying capital securities |
1,791 | 1,791 | 1,791 | |||||||||
Less: Goodwill |
917 | 917 | 917 | |||||||||
Accumulated other comprehensive income (loss) (a) |
(67 | ) | 247 | (48 | ) | |||||||
Other assets (b) |
247 | 383 | 632 | |||||||||
Total Tier 1 capital (regulatory) |
11,811 | 11,378 | 10,953 | |||||||||
Less: Qualifying capital securities |
1,791 | 1,791 | 1,791 | |||||||||
Preferred Stock, Series B |
2,446 | 2,442 | 2,430 | |||||||||
Preferred Stock, Series A |
291 | 291 | 291 | |||||||||
Total Tier 1 common equity (non-GAAP) |
$ | 7,283 | $ | 6,854 | $ | 6,441 | ||||||
Net risk-weighted assets (regulatory) (b), (c) |
$ | 78,224 | $ | 79,572 | $ | 85,881 | ||||||
Tier 1 common equity ratio (non-GAAP) (c) |
9.31 | % | 8.61 | % | 7.50 | % | ||||||
Pre-provision net revenue |
||||||||||||
Net interest income (GAAP) |
$ | 629 | $ | 640 | $ | 630 | ||||||
Plus: Taxable-equivalent adjustment |
6 | 7 | 7 | |||||||||
Noninterest income |
526 | 486 | 469 | |||||||||
Less: Noninterest expense |
744 | 736 | 871 | |||||||||
Pre-provision net revenue from continuing operations (non-GAAP) |
$ | 417 | $ | 397 | $ | 235 | ||||||
(a) | Includes net unrealized gains or losses on securities available for sale (except for net unrealized losses on marketable equity securities), net gains or losses on cash flow hedges, and amounts resulting from the December 31, 2006, adoption and subsequent application of the applicable accounting guidance for defined benefit and other postretirement plans. | |
(b) | Other assets deducted from Tier 1 capital and net risk-weighted assets consist of disallowed deferred tax assets of $158 million at December 31, 2010, $277 million at September 30, 2010 and $514 million at December 31, 2009, disallowed intangible assets (excluding goodwill) and deductible portions of nonfinancial equity investments. | |
(c) | 12-31-10 amount is estimated. |
GAAP = U.S. generally accepted accounting principles
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 17
January 25, 2011
Page 17
Consolidated Balance Sheets
(dollars in millions)
(dollars in millions)
12-31-10 | 9-30-10 | 12-31-09 | ||||||||||
Assets |
||||||||||||
Loans |
$ | 50,107 | $ | 51,354 | $ | 58,770 | ||||||
Loans held for sale |
467 | 637 | 443 | |||||||||
Securities available for sale |
21,933 | 21,241 | 16,641 | |||||||||
Held-to-maturity securities |
17 | 18 | 24 | |||||||||
Trading account assets |
985 | 1,155 | 1,209 | |||||||||
Short-term investments |
1,344 | 1,871 | 1,743 | |||||||||
Other investments |
1,358 | 1,405 | 1,488 | |||||||||
Total earning assets |
76,211 | 77,681 | 80,318 | |||||||||
Allowance for loan losses |
(1,604 | ) | (1,957 | ) | (2,534 | ) | ||||||
Cash and due from banks |
278 | 823 | 471 | |||||||||
Premises and equipment |
908 | 888 | 880 | |||||||||
Operating lease assets |
509 | 563 | 716 | |||||||||
Goodwill |
917 | 917 | 917 | |||||||||
Other intangible assets |
21 | 39 | 50 | |||||||||
Corporate-owned life insurance |
3,167 | 3,145 | 3,071 | |||||||||
Derivative assets |
1,006 | 1,258 | 1,094 | |||||||||
Accrued income and other assets |
3,876 | 3,936 | 4,096 | |||||||||
Discontinued assets |
6,554 | 6,750 | 4,208 | |||||||||
Total assets |
$ | 91,843 | $ | 94,043 | $ | 93,287 | ||||||
Liabilities |
||||||||||||
Deposits in domestic offices: |
||||||||||||
NOW and money market deposit accounts |
$ | 27,066 | $ | 26,350 | $ | 24,341 | ||||||
Savings deposits |
1,879 | 1,856 | 1,807 | |||||||||
Certificates of deposit ($100,000 or more) |
5,862 | 6,850 | 10,954 | |||||||||
Other time deposits |
8,245 | 9,014 | 13,286 | |||||||||
Total interest-bearing deposits |
43,052 | 44,070 | 50,388 | |||||||||
Noninterest-bearing deposits |
16,653 | 16,275 | 14,415 | |||||||||
Deposits in foreign office interest-bearing |
905 | 1,073 | 768 | |||||||||
Total deposits |
60,610 | 61,418 | 65,571 | |||||||||
Federal
funds purchased and securities sold under repurchase agreements |
2,045 | 2,793 | 1,742 | |||||||||
Bank notes and other short-term borrowings |
1,151 | 685 | 340 | |||||||||
Derivative liabilities |
1,142 | 1,330 | 1,012 | |||||||||
Accrued expense and other liabilities |
1,931 | 1,862 | 2,007 | |||||||||
Long-term debt |
10,592 | 11,443 | 11,558 | |||||||||
Discontinued liabilities |
2,998 | 3,124 | 124 | |||||||||
Total liabilities |
80,469 | 82,655 | 82,354 | |||||||||
Equity |
||||||||||||
Preferred stock, Series A |
291 | 291 | 291 | |||||||||
Preferred stock, Series B |
2,446 | 2,442 | 2,430 | |||||||||
Common shares |
946 | 946 | 946 | |||||||||
Common stock warrant |
87 | 87 | 87 | |||||||||
Capital surplus |
3,711 | 3,710 | 3,734 | |||||||||
Retained earnings |
5,557 | 5,287 | 5,158 | |||||||||
Treasury stock, at cost |
(1,904 | ) | (1,914 | ) | (1,980 | ) | ||||||
Accumulated other comprehensive income (loss) |
(17 | ) | 285 | (3 | ) | |||||||
Key shareholders equity |
11,117 | 11,134 | 10,663 | |||||||||
Noncontrolling interests |
257 | 254 | 270 | |||||||||
Total equity |
11,374 | 11,388 | 10,933 | |||||||||
Total liabilities and equity |
$ | 91,843 | $ | 94,043 | $ | 93,287 | ||||||
Common shares outstanding (000) |
880,608 | 880,328 | 878,535 |
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 18
January 25, 2011
Page 18
Consolidated Statements of Income
(dollars in millions, except per share amounts)
(dollars in millions, except per share amounts)
Three months ended | Twelve months ended | ||||||||||||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | 12-31-10 | 12-31-09 | |||||||||||||||||||
Interest income |
|||||||||||||||||||||||
Loans |
$ | 617 | $ | 649 | $ | 749 | $ | 2,653 | $ | 3,194 | |||||||||||||
Loans held for sale |
4 | 4 | 6 | 17 | 29 | ||||||||||||||||||
Securities available for sale |
170 | 170 | 150 | 644 | 460 | ||||||||||||||||||
Held-to-maturity securities |
| 1 | | 2 | 2 | ||||||||||||||||||
Trading account assets |
8 | 8 | 12 | 37 | 47 | ||||||||||||||||||
Short-term investments |
1 | 1 | 3 | 6 | 12 | ||||||||||||||||||
Other investments |
11 | 11 | 13 | 49 | 51 | ||||||||||||||||||
Total interest income |
811 | 844 | 933 | 3,408 | 3,795 | ||||||||||||||||||
Interest expense |
|||||||||||||||||||||||
Deposits |
124 | 147 | 246 | 671 | 1,119 | ||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements |
2 | 1 | 1 | 6 | 5 | ||||||||||||||||||
Bank notes and other short-term borrowings |
3 | 4 | 3 | 14 | 16 | ||||||||||||||||||
Long-term debt |
53 | 52 | 53 | 206 | 275 | ||||||||||||||||||
Total interest expense |
182 | 204 | 303 | 897 | 1,415 | ||||||||||||||||||
Net interest income |
629 | 640 | 630 | 2,511 | 2,380 | ||||||||||||||||||
Provision for loan losses |
(97 | ) | 94 | 756 | 638 | 3,159 | |||||||||||||||||
Net interest income (expense) after provision for loan losses |
726 | 546 | (126 | ) | 1,873 | (779 | ) | ||||||||||||||||
Noninterest income |
|||||||||||||||||||||||
Trust and investment services income |
108 | 110 | 117 | 444 | 459 | ||||||||||||||||||
Service charges on deposit accounts |
70 | 75 | 82 | 301 | 330 | ||||||||||||||||||
Operating lease income |
42 | 41 | 52 | 173 | 227 | ||||||||||||||||||
Letter of credit and loan fees |
51 | 61 | 52 | 194 | 180 | ||||||||||||||||||
Corporate-owned life insurance income |
42 | 39 | 36 | 137 | 114 | ||||||||||||||||||
Net securities gains (losses) (a) |
12 | 1 | 1 | 14 | 113 | ||||||||||||||||||
Electronic banking fees |
31 | 30 | 27 | 117 | 105 | ||||||||||||||||||
Gains on leased equipment |
6 | 4 | 15 | 20 | 99 | ||||||||||||||||||
Insurance income |
12 | 15 | 16 | 64 | 68 | ||||||||||||||||||
Net gains (losses) from loan sales |
29 | 18 | (5 | ) | 76 | (1 | ) | ||||||||||||||||
Net gains (losses) from principal investing |
(6 | ) | 18 | 80 | 66 | (4 | ) | ||||||||||||||||
Investment banking and capital markets income (loss) |
63 | 42 | (47 | ) | 145 | (42 | ) | ||||||||||||||||
Gain from sale/redemption of Visa Inc. shares |
| | | | 105 | ||||||||||||||||||
Gain (loss) related to exchange of common shares for capital securities |
| | | | 78 | ||||||||||||||||||
Other income |
66 | 32 | 43 | 203 | 204 | ||||||||||||||||||
Total noninterest income |
526 | 486 | 469 | 1,954 | 2,035 | ||||||||||||||||||
Noninterest expense |
|||||||||||||||||||||||
Personnel |
365 | 359 | 400 | 1,471 | 1,514 | ||||||||||||||||||
Net occupancy |
70 | 70 | 67 | 270 | 259 | ||||||||||||||||||
Operating lease expense |
28 | 40 | 50 | 142 | 195 | ||||||||||||||||||
Computer processing |
45 | 46 | 49 | 185 | 192 | ||||||||||||||||||
Business services and professional fees |
56 | 41 | 63 | 176 | 184 | ||||||||||||||||||
FDIC assessment |
27 | 27 | 37 | 124 | 177 | ||||||||||||||||||
OREO expense, net |
10 | 4 | 25 | 68 | 97 | ||||||||||||||||||
Equipment |
26 | 24 | 25 | 100 | 96 | ||||||||||||||||||
Marketing |
22 | 21 | 22 | 72 | 72 | ||||||||||||||||||
Provision (credit) for losses on lending-related commitments |
(26 | ) | (10 | ) | 27 | (48 | ) | 67 | |||||||||||||||
Intangible assets impairment |
| | | | 241 | ||||||||||||||||||
Other expense |
121 | 114 | 106 | 474 | 460 | ||||||||||||||||||
Total noninterest expense |
744 | 736 | 871 | 3,034 | 3,554 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes |
508 | 296 | (528 | ) | 793 | (2,298 | ) | ||||||||||||||||
Income taxes |
172 | 85 | (347 | ) | 186 | (1,035 | ) | ||||||||||||||||
Income (loss) from continuing operations |
336 | 211 | (181 | ) | 607 | (1,263 | ) | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes |
(13 | ) | 15 | (7 | ) | (23 | ) | (48 | ) | ||||||||||||||
Net income (loss) |
323 | 226 | (188 | ) | 584 | (1,311 | ) | ||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
3 | 7 | 36 | 30 | 24 | ||||||||||||||||||
Net income (loss) attributable to Key |
$ | 320 | $ | 219 | $ | (224 | ) | $ | 554 | $ | (1,335 | ) | |||||||||||
Income (loss) from continuing operations attributable to Key common shareholders |
$ | 292 | $ | 163 | $ | (258 | ) | $ | 413 | $ | (1,581 | ) | |||||||||||
Net income (loss) attributable to Key common shareholders |
279 | 178 | (265 | ) | 390 | (1,629 | ) | ||||||||||||||||
Per common share |
|||||||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders |
$ | .33 | $ | .19 | $ | (.30 | ) | $ | .47 | $ | (2.27 | ) | |||||||||||
Income (loss) from discontinued operations, net of taxes |
(.02 | ) | .02 | (.01 | ) | (.03 | ) | (.07 | ) | ||||||||||||||
Net income (loss) attributable to Key common shareholders |
.32 | .20 | (.30 | ) | .45 | (2.34 | ) | ||||||||||||||||
Per common share assuming dilution |
|||||||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders |
$ | .33 | $ | .19 | $ | (.30 | ) | $ | .47 | $ | (2.27 | ) | |||||||||||
Income (loss) from discontinued operations, net of taxes |
(.02 | ) | .02 | (.01 | ) | (.03 | ) | (.07 | ) | ||||||||||||||
Net income (loss) attributable to Key common shareholders |
.32 | .20 | (.30 | ) | .44 | (2.34 | ) | ||||||||||||||||
Cash dividends declared per common share |
$ | .01 | $ | .01 | $ | .01 | $ | .04 | $ | .0925 | |||||||||||||
Weighted-average common shares outstanding (000) |
875,501 | 874,433 | 873,268 | 874,748 | 697,155 | ||||||||||||||||||
Weighted-average common shares and potential
common shares outstanding (000) (b) |
900,263 | 874,433 | 873,268 | 878,153 | 697,155 |
(a) | For the three months ended December 31, 2010, September 30, 2010 and December 31, 2009, Key did not have any impairment losses related to securities. | |
(b) | Assumes conversion of stock options and/or Preferred Series A shares, as applicable. |
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 19
January 25, 2011
Page 19
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)
(dollars in millions)
Fourth Quarter 2010 | Third Quarter 2010 | Fourth Quarter 2009 | ||||||||||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||||||||
Balance | Interest(a) | Yield/Rate(a) | Balance | Interest(a) | Yield/Rate(a) | Balance | Interest(a) | Yield/Rate(a) | ||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||
Loans: (b), (c) |
||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural |
$ | 16,562 | $ | 189 | 4.51 | % | $ | 16,948 | $ | 193 | 4.52 | % | $ | 19,817 | $ | 232 | 4.63 | % | ||||||||||||||||||
Real estate commercial mortgage |
9,514 | 117 | 4.89 | 9,822 | 122 | 4.94 | 10,853 | 132 | 4.84 | |||||||||||||||||||||||||||
Real estate construction |
2,531 | 26 | 4.15 | 3,165 | 37 | 4.58 | 5,246 | 62 | 4.70 | |||||||||||||||||||||||||||
Commercial lease financing |
6,484 | 82 | 5.08 | 6,587 | 87 | 5.25 | 7,598 | 97 | 5.10 | |||||||||||||||||||||||||||
Total commercial loans |
35,091 | 414 | 4.69 | 36,522 | 439 | 4.77 | 43,514 | 523 | 4.77 | |||||||||||||||||||||||||||
Real estate residential mortgage |
1,837 | 25 | 5.43 | 1,843 | 26 | 5.59 | 1,781 | 26 | 5.80 | |||||||||||||||||||||||||||
Home equity: |
||||||||||||||||||||||||||||||||||||
Key Community Bank |
9,583 | 101 | 4.16 | 9,709 | 102 | 4.19 | 10,101 | 109 | 4.28 | |||||||||||||||||||||||||||
Other |
686 | 13 | 7.58 | 732 | 14 | 7.61 | 862 | 16 | 7.54 | |||||||||||||||||||||||||||
Total home equity loans |
10,269 | 114 | 4.39 | 10,441 | 116 | 4.43 | 10,963 | 125 | 4.53 | |||||||||||||||||||||||||||
Consumer other Key Community Bank |
1,170 | 30 | 10.38 | 1,156 | 33 | 11.20 | 1,185 | 32 | 11.06 | |||||||||||||||||||||||||||
Consumer other: |
||||||||||||||||||||||||||||||||||||
Marine |
2,295 | 36 | 6.30 | 2,423 | 38 | 6.25 | 2,866 | 44 | 6.16 | |||||||||||||||||||||||||||
Other |
167 | 3 | 7.98 | 181 | 4 | 7.95 | 224 | 5 | 7.81 | |||||||||||||||||||||||||||
Total consumer other |
2,462 | 39 | 6.41 | 2,604 | 42 | 6.37 | 3,090 | 49 | 6.28 | |||||||||||||||||||||||||||
Total consumer loans |
15,738 | 208 | 5.27 | 16,044 | 217 | 5.37 | 17,019 | 232 | 5.44 | |||||||||||||||||||||||||||
Total loans |
50,829 | 622 | 4.87 | 52,566 | 656 | 4.95 | 60,533 | 755 | 4.96 | |||||||||||||||||||||||||||
Loans held for sale |
403 | 4 | 3.16 | 501 | 4 | 3.48 | 618 | 6 | 3.35 | |||||||||||||||||||||||||||
Securities available for sale (b), (e) |
21,257 | 171 | 3.27 | 20,276 | 170 | 3.43 | 15,937 | 151 | 3.82 | |||||||||||||||||||||||||||
Held-to-maturity securities (b) |
17 | | 11.92 | 19 | 1 | 11.05 | 24 | | 3.34 | |||||||||||||||||||||||||||
Trading account assets |
967 | 8 | 3.22 | 1,074 | 8 | 3.03 | 1,315 | 12 | 3.72 | |||||||||||||||||||||||||||
Short-term investments |
2,521 | 1 | .22 | 1,594 | 1 | .23 | 3,682 | 3 | .23 | |||||||||||||||||||||||||||
Other investments (e) |
1,400 | 11 | 2.86 | 1,426 | 11 | 3.00 | 1,465 | 13 | 3.21 | |||||||||||||||||||||||||||
Total earning assets |
77,394 | 817 | 4.22 | 77,456 | 851 | 4.39 | 83,574 | 940 | 4.47 | |||||||||||||||||||||||||||
Allowance for loan losses |
(1,789 | ) | (2,092 | ) | (2,525 | ) | ||||||||||||||||||||||||||||||
Accrued income and other assets |
11,025 | 11,363 | 10,785 | |||||||||||||||||||||||||||||||||
Discontinued assets education lending business |
6,674 | 6,762 | 4,141 | |||||||||||||||||||||||||||||||||
Total assets |
$ | 93,304 | $ | 93,489 | $ | 95,975 | ||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||
NOW and money market deposit accounts |
$ | 27,047 | 21 | .30 | $ | 25,783 | 23 | .35 | $ | 24,910 | 25 | .39 | ||||||||||||||||||||||||
Savings deposits |
1,873 | | .06 | 1,885 | | .06 | 1,801 | 1 | .06 | |||||||||||||||||||||||||||
Certificates of deposit ($100,000 or more) (f) |
6,341 | 49 | 3.05 | 7,635 | 61 | 3.12 | 11,675 | 103 | 3.49 | |||||||||||||||||||||||||||
Other time deposits |
8,664 | 53 | 2.43 | 9,648 | 63 | 2.59 | 13,753 | 117 | 3.39 | |||||||||||||||||||||||||||
Deposits in foreign office |
1,228 | 1 | .32 | 958 | | .37 | 711 | | .31 | |||||||||||||||||||||||||||
Total interest-bearing deposits |
45,153 | 124 | 1.09 | 45,909 | 147 | 1.27 | 52,850 | 246 | 1.84 | |||||||||||||||||||||||||||
Federal funds purchased and securities
sold under repurchase agreements |
2,236 | 2 | .31 | 2,300 | 1 | .31 | 1,657 | 1 | .31 | |||||||||||||||||||||||||||
Bank notes and other short-term borrowings |
480 | 3 | 2.77 | 669 | 4 | 2.36 | 418 | 3 | 3.03 | |||||||||||||||||||||||||||
Long-term debt (f) |
7,525 | 53 | 3.02 | 7,308 | 52 | 3.08 | 8,092 | 53 | 2.91 | |||||||||||||||||||||||||||
Total interest-bearing liabilities |
55,394 | 182 | 1.31 | 56,186 | 204 | 1.46 | 63,017 | 303 | 1.94 | |||||||||||||||||||||||||||
Noninterest-bearing deposits |
16,841 | 15,949 | 14,655 | |||||||||||||||||||||||||||||||||
Accrued expense and other liabilities |
2,965 | 3,344 | 3,097 | |||||||||||||||||||||||||||||||||
Discontinued liabilities education lending business (d) |
6,674 | 6,762 | 4,141 | |||||||||||||||||||||||||||||||||
Total liabilities |
81,874 | 82,241 | 84,910 | |||||||||||||||||||||||||||||||||
Equity |
||||||||||||||||||||||||||||||||||||
Key shareholders equity |
11,183 | 10,999 | 10,843 | |||||||||||||||||||||||||||||||||
Noncontrolling interests |
247 | 249 | 222 | |||||||||||||||||||||||||||||||||
Total equity |
11,430 | 11,248 | 11,065 | |||||||||||||||||||||||||||||||||
Total liabilities and equity |
$ | 93,304 | $ | 93,489 | $ | 95,975 | ||||||||||||||||||||||||||||||
Interest rate spread (TE) |
2.91 | % | 2.93 | % | 2.53 | % | ||||||||||||||||||||||||||||||
Net interest income (TE) and net interest margin (TE) |
635 | 3.31 | % | 647 | 3.35 | % | 637 | 3.04 | % | |||||||||||||||||||||||||||
TE adjustment (b) |
6 | 7 | 7 | |||||||||||||||||||||||||||||||||
Net interest income, GAAP basis |
$ | 629 | $ | 640 | $ | 630 | ||||||||||||||||||||||||||||||
(a) | Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (d) below, calculated using a matched funds transfer pricing methodology. | |
(b) | Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%. | |
(c) | For purposes of these computations, nonaccrual loans are included in average loan balances. | |
(d) | Discontinued liabilities include the liabilities of the education lending business and the dollar amount of any additional liabilities assumed necessary to support the assets associated with this business. | |
(e) | Yield is calculated on the basis of amortized cost. | |
(f) | Rate calculation excludes basis adjustments related to fair value hedges. |
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 20
January 25, 2011
Page 20
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)
(dollars in millions)
Twelve months ended December 31, 2010 | Twelve months ended December 31, 2009 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Balance | Interest(a) | Yield/Rate(a) | Balance | Interest(a) | Yield/ Rate(a) | |||||||||||||||||||
Assets |
||||||||||||||||||||||||
Loans: (b), (c) |
||||||||||||||||||||||||
Commercial, financial and agricultural |
$ | 17,500 | $ | 813 | 4.64 | % | $ | 23,181 | $ | 1,038 | 4.48 | % | ||||||||||||
Real estate commercial mortgage |
10,027 | 491 | 4.90 | 11,310 | (d) | 557 | 4.93 | |||||||||||||||||
Real estate construction |
3,495 | 149 | 4.26 | 6,206 | (d) | 294 | 4.74 | |||||||||||||||||
Commercial lease financing |
6,754 | 352 | 5.21 | 8,220 | 369 | 4.48 | ||||||||||||||||||
Total commercial loans |
37,776 | 1,805 | 4.78 | 48,917 | 2,258 | 4.61 | ||||||||||||||||||
Real estate residential mortgage |
1,828 | 102 | 5.57 | 1,764 | 104 | 5.91 | ||||||||||||||||||
Home equity: |
||||||||||||||||||||||||
Key Community Bank |
9,773 | 411 | 4.20 | 10,214 | 445 | 4.36 | ||||||||||||||||||
Other |
751 | 57 | 7.59 | 945 | 71 | 7.50 | ||||||||||||||||||
Total home equity loans |
10,524 | 468 | 4.45 | 11,159 | 516 | 4.63 | ||||||||||||||||||
Consumer other Key Community Bank |
1,158 | 132 | 11.44 | 1,202 | 127 | 10.62 | ||||||||||||||||||
Consumer other: |
||||||||||||||||||||||||
Marine |
2,497 | 155 | 6.23 | 3,097 | 193 | 6.22 | ||||||||||||||||||
Other |
188 | 15 | 7.87 | 247 | 20 | 7.93 | ||||||||||||||||||
Total consumer other |
2,685 | 170 | 6.34 | 3,344 | 213 | 6.35 | ||||||||||||||||||
Total consumer loans |
16,195 | 872 | 5.39 | 17,469 | 960 | 5.50 | ||||||||||||||||||
Total loans |
53,971 | 2,677 | 4.96 | 66,386 | 3,218 | 4.85 | ||||||||||||||||||
Loans held for sale |
453 | 17 | 3.62 | 650 | 29 | 4.37 | ||||||||||||||||||
Securities available for sale (b), (f) |
18,800 | 646 | 3.50 | 11,169 | 462 | 4.19 | ||||||||||||||||||
Held-to-maturity securities (b) |
20 | 2 | 10.56 | 25 | 2 | 8.17 | ||||||||||||||||||
Trading account assets |
1,068 | 37 | 3.47 | 1,238 | 47 | 3.83 | ||||||||||||||||||
Short-term investments |
2,684 | 6 | .24 | 4,149 | 12 | .28 | ||||||||||||||||||
Other investments (f) |
1,442 | 49 | 3.08 | 1,478 | 51 | 3.11 | ||||||||||||||||||
Total earning assets |
78,438 | 3,434 | 4.39 | 85,095 | 3,821 | 4.49 | ||||||||||||||||||
Allowance for loan losses |
(2,207 | ) | (2,273 | ) | ||||||||||||||||||||
Accrued income and other assets |
11,243 | 12,349 | ||||||||||||||||||||||
Discontinued assets education lending business |
6,677 | 4,269 | ||||||||||||||||||||||
$ | 94,151 | $ | 99,440 | |||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||
NOW and money market deposit accounts |
$ | 25,712 | 91 | .35 | $ | 24,345 | 124 | .51 | ||||||||||||||||
Savings deposits |
1,867 | 1 | .06 | 1,787 | 2 | .07 | ||||||||||||||||||
Certificates of deposit ($100,000 or more) (g) |
8,486 | 275 | 3.24 | 12,612 | 462 | 3.66 | ||||||||||||||||||
Other time deposits |
10,545 | 301 | 2.86 | 14,535 | 529 | 3.64 | ||||||||||||||||||
Deposits in foreign office |
926 | 3 | .34 | 802 | 2 | .27 | ||||||||||||||||||
Total interest-bearing deposits |
47,536 | 671 | 1.41 | 54,081 | 1,119 | 2.07 | ||||||||||||||||||
Federal
funds purchased and securities sold under repurchase agreements |
2,044 | 6 | .31 | 1,618 | 5 | .31 | ||||||||||||||||||
Bank notes and other short-term borrowings |
545 | 14 | 2.63 | 1,907 | 16 | .84 | ||||||||||||||||||
Long-term debt (g) |
7,211 | 206 | 3.09 | 9,455 | 275 | 3.16 | ||||||||||||||||||
Total interest-bearing liabilities |
57,336 | 897 | 1.58 | 67,061 | 1,415 | 2.13 | ||||||||||||||||||
Noninterest-bearing deposits |
15,856 | 12,964 | ||||||||||||||||||||||
Accrued expense and other liabilities |
3,131 | 4,340 | ||||||||||||||||||||||
Discontinued liabilities education lending business (e) |
6,677 | 4,269 | ||||||||||||||||||||||
83,000 | 88,634 | |||||||||||||||||||||||
Equity |
||||||||||||||||||||||||
Key shareholders equity |
10,895 | 10,592 | ||||||||||||||||||||||
Noncontrolling interests |
256 | 214 | ||||||||||||||||||||||
Total equity |
11,151 | 10,806 | ||||||||||||||||||||||
Total liabilities and equity |
$ | 94,151 | $ | 99,440 | ||||||||||||||||||||
Interest rate spread (TE) |
2.81 | % | 2.36 | % | ||||||||||||||||||||
Net interest income (TE) and net interest margin (TE) |
2,537 | 3.26 | % | 2,406 | 2.83 | % | ||||||||||||||||||
TE adjustment (b) |
26 | 26 | ||||||||||||||||||||||
Net interest income, GAAP basis |
$ | 2,511 | $ | 2,380 | ||||||||||||||||||||
(a) | Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (e) below, calculated using a matched funds transfer pricing methodology. | |
(b) | Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%. | |
(c) | For purposes of these computations, nonaccrual loans are included in average loan balances. | |
(d) | In late March 2009, Key transferred $1.5 billion of loans from the construction portfolio to the commercial mortgage portfolio in accordance with regulatory guidelines pertaining to the classification of loans that have reached a completed status. | |
(e) | Discontinued liabilities include the liabilities of the education lending business and the dollar amount of any additional liabilities assumed necessary to support the assets associated with this business. | |
(f) | Yield is calculated on the basis of amortized cost. | |
(g) | Rate calculation excludes basis adjustments related to fair value hedges. | |
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles |
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 21
January 25, 2011
Page 21
Noninterest Income
(in millions)
(in millions)
Three months ended | Twelve months ended | |||||||||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | 12-31-10 | 12-31-09 | ||||||||||||||||
Trust and investment services income (a) |
$ | 108 | $ | 110 | $ | 117 | $ | 444 | $ | 459 | ||||||||||
Service charges on deposit accounts |
70 | 75 | 82 | 301 | 330 | |||||||||||||||
Operating lease income |
42 | 41 | 52 | 173 | 227 | |||||||||||||||
Letter of credit and loan fees |
51 | 61 | 52 | 194 | 180 | |||||||||||||||
Corporate-owned life insurance income |
42 | 39 | 36 | 137 | 114 | |||||||||||||||
Net securities gains (losses) |
12 | 1 | 1 | 14 | 113 | |||||||||||||||
Electronic banking fees |
31 | 30 | 27 | 117 | 105 | |||||||||||||||
Gains on leased equipment |
6 | 4 | 15 | 20 | 99 | |||||||||||||||
Insurance income |
12 | 15 | 16 | 64 | 68 | |||||||||||||||
Net gains (losses) from loan sales |
29 | 18 | (5 | ) | 76 | (1 | ) | |||||||||||||
Net gains (losses) from principal investing |
(6 | ) | 18 | 80 | 66 | (4 | ) | |||||||||||||
Investment banking and capital markets income (loss) (a) |
63 | 42 | (47 | ) | 145 | (42 | ) | |||||||||||||
Gain from sale/redemption of Visa Inc. shares |
| | | | 105 | |||||||||||||||
Gain (loss) related to exchange of common shares for capital securities |
| | | | 78 | |||||||||||||||
Other income: |
||||||||||||||||||||
Gain from sale of Keys claim associated with the Lehman Brothers Bankruptcy |
| | | | 32 | |||||||||||||||
Credit card fees |
2 | 3 | 2 | 11 | 14 | |||||||||||||||
Miscellaneous income |
64 | 29 | 41 | 192 | 158 | |||||||||||||||
Total other income |
66 | 32 | 43 | 203 | 204 | |||||||||||||||
Total noninterest income |
$ | 526 | $ | 486 | $ | 469 | $ | 1,954 | $ | 2,035 | ||||||||||
(a) | Additional detail provided in tables below. |
Trust and Investment Services Income
(in millions)
(in millions)
Three months ended | Twelve months ended | |||||||||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | 12-31-10 | 12-31-09 | ||||||||||||||||
Brokerage commissions and fee income |
$ | 32 | $ | 33 | $ | 31 | $ | 134 | $ | 151 | ||||||||||
Personal asset management and custody fees |
38 | 37 | 37 | 149 | 141 | |||||||||||||||
Institutional asset management and custody fees |
38 | 40 | 49 | 161 | 167 | |||||||||||||||
Total trust and investment services income |
$ | 108 | $ | 110 | $ | 117 | $ | 444 | $ | 459 | ||||||||||
Investment Banking and Capital Markets Income (Loss)
(in millions)
(in millions)
Three months ended | Twelve months ended | |||||||||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | 12-31-10 | 12-31-09 | ||||||||||||||||
Investment banking income |
$ | 33 | $ | 38 | $ | 29 | $ | 112 | $ | 83 | ||||||||||
Income (loss) from other investments |
| 2 | (66 | ) | 6 | (103 | ) | |||||||||||||
Dealer trading and derivatives income (loss) |
18 | (10 | ) | (21 | ) | (16 | ) | (70 | ) | |||||||||||
Foreign exchange income |
12 | 12 | 11 | 43 | 48 | |||||||||||||||
Total investment banking and capital markets income (loss) |
$ | 63 | $ | 42 | $ | (47 | ) | $ | 145 | $ | (42 | ) | ||||||||
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 22
January 25, 2011
Page 22
Noninterest Expense
(dollars in millions)
Three months ended | Twelve months ended | |||||||||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | 12-31-10 | 12-31-09 | ||||||||||||||||
Personnel (a) |
$ | 365 | $ | 359 | $ | 400 | $ | 1,471 | $ | 1,514 | ||||||||||
Net occupancy |
70 | 70 | 67 | 270 | 259 | |||||||||||||||
Operating lease expense |
28 | 40 | 50 | 142 | 195 | |||||||||||||||
Computer processing |
45 | 46 | 49 | 185 | 192 | |||||||||||||||
Business services and professional fees |
56 | 41 | 63 | 176 | 184 | |||||||||||||||
FDIC assessment |
27 | 27 | 37 | 124 | 177 | |||||||||||||||
OREO expense, net |
10 | 4 | 25 | 68 | 97 | |||||||||||||||
Equipment |
26 | 24 | 25 | 100 | 96 | |||||||||||||||
Marketing |
22 | 21 | 22 | 72 | 72 | |||||||||||||||
Provision (credit) for losses on lending-related commitments |
(26 | ) | (10 | ) | 27 | (48 | ) | 67 | ||||||||||||
Intangible assets impairment |
| | | | 241 | |||||||||||||||
Other expense: |
||||||||||||||||||||
Postage and delivery |
6 | 9 | 8 | 30 | 33 | |||||||||||||||
Franchise and business taxes |
9 | 5 | 5 | 27 | 31 | |||||||||||||||
Telecommunications |
6 | 5 | 6 | 22 | 26 | |||||||||||||||
Provision for losses on LIHTC guaranteed funds |
8 | | | 8 | 17 | |||||||||||||||
Miscellaneous expense |
92 | 95 | 87 | 387 | 353 | |||||||||||||||
Total other expense |
121 | 114 | 106 | 474 | 460 | |||||||||||||||
Total noninterest expense |
$ | 744 | $ | 736 | $ | 871 | $ | 3,034 | $ | 3,554 | ||||||||||
Average full-time equivalent employees (b) |
15,424 | 15,584 | 15,973 | 15,610 | 16,698 |
(a) | Additional detail provided in table below. | |
(b) | The number of average full-time equivalent employees has not been adjusted for discontinued operations. |
Personnel Expense
(in millions)
Three months ended | Twelve months ended | |||||||||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | 12-31-10 | 12-31-09 | ||||||||||||||||
Salaries |
$ | 232 | $ | 230 | $ | 229 | $ | 913 | $ | 905 | ||||||||||
Incentive compensation |
85 | 69 | 76 | 266 | 222 | |||||||||||||||
Employee benefits |
34 | 45 | 75 | 224 | 303 | |||||||||||||||
Stock-based compensation |
11 | 12 | 15 | 52 | 51 | |||||||||||||||
Severance |
3 | 3 | 5 | 16 | 33 | |||||||||||||||
Total personnel expense |
$ | 365 | $ | 359 | $ | 400 | $ | 1,471 | $ | 1,514 | ||||||||||
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 23
January 25, 2011
Page 23
Loan Composition
(dollars in millions)
Percent change 12-31-10 vs. | ||||||||||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | 9-30-10 | 12-31-09 | ||||||||||||||||
Commercial, financial and agricultural |
$ | 16,441 | $ | 16,451 | $ | 19,248 | (.1) | % | (14.6) | % | ||||||||||
Commercial real estate: |
||||||||||||||||||||
Commercial mortgage |
9,502 | 9,673 | 10,457 | (1.8 | ) | (9.1 | ) | |||||||||||||
Construction |
2,106 | 2,731 | 4,739 | (22.9 | ) | (55.6 | ) | |||||||||||||
Total commercial real estate loans |
11,608 | 12,404 | 15,196 | (6.4 | ) | (23.6 | ) | |||||||||||||
Commercial lease financing |
6,471 | 6,583 | 7,460 | (1.7 | ) | (13.3 | ) | |||||||||||||
Total commercial loans |
34,520 | 35,438 | 41,904 | (2.6 | ) | (17.6 | ) | |||||||||||||
Real estate residential mortgage |
1,844 | 1,853 | 1,796 | (.5 | ) | 2.7 | ||||||||||||||
Home equity: |
||||||||||||||||||||
Key Community Bank |
9,514 | 9,655 | 10,048 | (1.5 | ) | (5.3 | ) | |||||||||||||
Other |
666 | 707 | 838 | (5.8 | ) | (20.5 | ) | |||||||||||||
Total home equity loans |
10,180 | 10,362 | 10,886 | (1.8 | ) | (6.5 | ) | |||||||||||||
Consumer other Key Community Bank |
1,167 | 1,174 | 1,181 | (.6 | ) | (1.2 | ) | |||||||||||||
Consumer other: |
||||||||||||||||||||
Marine |
2,234 | 2,355 | 2,787 | (5.1 | ) | (19.8 | ) | |||||||||||||
Other |
162 | 172 | 216 | (5.8 | ) | (25.0 | ) | |||||||||||||
Total consumer indirect loans |
2,396 | 2,527 | 3,003 | (5.2 | ) | (20.2 | ) | |||||||||||||
Total consumer loans |
15,587 | 15,916 | 16,866 | (2.1 | ) | (7.6 | ) | |||||||||||||
Total loans (a) |
$ | 50,107 | $ | 51,354 | $ | 58,770 | (2.4) | % | (14.7) | % | ||||||||||
Loans Held for Sale Composition
(dollars in millions)
Percent change 12-31-10 vs. | ||||||||||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | 9-30-10 | 12-31-09 | ||||||||||||||||
Commercial, financial and agricultural |
$ | 196 | $ | 128 | $ | 14 | 53.1 | % | N/M | |||||||||||
Real estate commercial mortgage |
118 | 327 | 171 | (63.9 | ) | (31.0) | % | |||||||||||||
Real estate construction |
35 | 77 | 92 | (54.5 | ) | (62.0 | ) | |||||||||||||
Commercial lease financing |
8 | 13 | 27 | (38.5 | ) | (70.4 | ) | |||||||||||||
Real estate residential mortgage |
110 | 92 | 139 | 19.6 | (20.9 | ) | ||||||||||||||
Total loans held for sale (b), (c) |
$ | 467 | $ | 637 | $ | 443 | (26.7) | % | 5.4 | % | ||||||||||
(a) | Excluded at December 31, 2010, September 30, 2010, and December 31, 2009, are loans in the amount of $6.5 billion, $6.6 billion, and $3.5 billion, respectively, related to the discontinued operations of the education lending business. | |
(b) | Excluded at December 31, 2010, September 30, 2010, and December 31, 2009, are loans held for sale in the amount of $15 million, $15 million, and $434 million, respectively, related to the discontinued operations of the education lending business. | |
(c) | The beginning balance at September 30, 2010 of $637 million increased by new originations in the amount of $1.053 billion and decreased by loan sales of $1.174 billion, and loan payments of $49 million, for an ending balance of $467 million at December 31, 2010. |
N/M = Not Meaningful
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 24
January 25, 2011
Page 24
Summary of Loan Loss Experience from Continuing Operations
(dollars in millions)
Three months ended | Twelve months ended | |||||||||||||||||||
12-31-10 | 9-30-10 | 12-31-09 | 12-31-10 | 12-31-09 | ||||||||||||||||
Average loans outstanding |
$ | 50,829 | $ | 52,566 | $ | 60,533 | $ | 53,971 | $ | 66,386 | ||||||||||
Allowance for loan losses at beginning of period |
$ | 1,957 | $ | 2,219 | $ | 2,485 | $ | 2,534 | $ | 1,629 | ||||||||||
Loans charged off: |
||||||||||||||||||||
Commercial, financial and agricultural |
104 | 170 | 232 | 565 | 838 | |||||||||||||||
Real estate commercial mortgage |
73 | 50 | 166 | 360 | 356 | |||||||||||||||
Real estate construction |
49 | 88 | 187 | 380 | 643 | |||||||||||||||
Total commercial real estate loans |
122 | 138 | 353 | 740 | 999 | |||||||||||||||
Commercial lease financing |
20 | 22 | 45 | 88 | 128 | |||||||||||||||
Total commercial loans |
246 | 330 | 630 | 1,393 | 1,965 | |||||||||||||||
Real estate residential mortgage |
11 | 7 | 9 | 36 | 20 | |||||||||||||||
Home equity: |
||||||||||||||||||||
Key Community Bank |
28 | 36 | 28 | 123 | 97 | |||||||||||||||
Other |
13 | 14 | 20 | 62 | 74 | |||||||||||||||
Total home equity loans |
41 | 50 | 48 | 185 | 171 | |||||||||||||||
Consumer other Key Community Bank |
16 | 15 | 17 | 64 | 67 | |||||||||||||||
Consumer other: |
||||||||||||||||||||
Marine |
25 | 25 | 41 | 129 | 154 | |||||||||||||||
Other |
4 | 3 | 5 | 15 | 19 | |||||||||||||||
Total consumer other |
29 | 28 | 46 | 144 | 173 | |||||||||||||||
Total consumer loans |
97 | 100 | 120 | 429 | 431 | |||||||||||||||
Total loans charged off |
343 | 430 | 750 | 1,822 | 2,396 | |||||||||||||||
Recoveries: |
||||||||||||||||||||
Commercial, financial and agricultural |
24 | 34 | 14 | 87 | 52 | |||||||||||||||
Real estate commercial mortgage |
21 | 4 | 1 | 30 | 2 | |||||||||||||||
Real estate construction |
21 | 12 | 6 | 44 | 9 | |||||||||||||||
Total commercial real estate loans |
42 | 16 | 7 | 74 | 11 | |||||||||||||||
Commercial lease financing |
8 | 6 | 6 | 25 | 22 | |||||||||||||||
Total commercial loans |
74 | 56 | 27 | 186 | 85 | |||||||||||||||
Real estate residential mortgage |
| 1 | 1 | 2 | 1 | |||||||||||||||
Home equity: |
||||||||||||||||||||
Key Community Bank |
2 | 1 | 1 | 7 | 4 | |||||||||||||||
Other |
| 1 | 1 | 3 | 2 | |||||||||||||||
Total home equity loans |
2 | 2 | 2 | 10 | 6 | |||||||||||||||
Consumer other Key Community Bank |
2 | 1 | 2 | 7 | 7 | |||||||||||||||
Consumer other: |
||||||||||||||||||||
Marine |
8 | 13 | 8 | 43 | 35 | |||||||||||||||
Other |
1 | | 2 | 4 | 5 | |||||||||||||||
Total consumer other |
9 | 13 | 10 | 47 | 40 | |||||||||||||||
Total consumer loans |
13 | 17 | 15 | 66 | 54 | |||||||||||||||
Total recoveries |
87 | 73 | 42 | 252 | 139 | |||||||||||||||
Net loan charge-offs |
(256 | ) | (357 | ) | (708 | ) | (1,570 | ) | (2,257 | ) | ||||||||||
Provision for loan losses |
(97 | ) | 94 | 756 | 638 | 3,159 | ||||||||||||||
Foreign currency translation adjustment |
| 1 | 1 | 2 | 3 | |||||||||||||||
Allowance for loan losses at end of period |
$ | 1,604 | $ | 1,957 | $ | 2,534 | $ | 1,604 | $ | 2,534 | ||||||||||
Liability for credit losses on lending-related commitments at beginning of period |
$ | 99 | $ | 109 | $ | 94 | $ | 121 | $ | 54 | ||||||||||
Provision (credit) for losses on lending-related commitments |
(26 | ) | (10 | ) | 27 | (48 | ) | 67 | ||||||||||||
Liability for credit losses on lending-related commitments at end of period (a) |
$ | 73 | $ | 99 | $ | 121 | $ | 73 | $ | 121 | ||||||||||
Total allowance for credit losses at end of period |
$ | 1,677 | $ | 2,056 | $ | 2,655 | $ | 1,677 | $ | 2,655 | ||||||||||
Net loan charge-offs to average loans |
2.00 | % | 2.69 | % | 4.64 | % | 2.91 | % | 3.40 | % | ||||||||||
Allowance for loan losses to period-end loans |
3.20 | 3.81 | 4.31 | 3.20 | 4.31 | |||||||||||||||
Allowance for credit losses to period-end loans |
3.35 | 4.00 | 4.52 | 3.35 | 4.52 | |||||||||||||||
Allowance for loan losses to nonperforming loans |
150.19 | 142.64 | 115.87 | 150.19 | 115.87 | |||||||||||||||
Allowance for credit losses to nonperforming loans |
157.02 | 149.85 | 121.40 | 157.02 | 121.40 | |||||||||||||||
Discontinued operations education lending business: |
||||||||||||||||||||
Loans charged off |
$ | 34 | $ | 26 | $ | 37 | $ | 129 | $ | 147 | ||||||||||
Recoveries |
2 | 4 | 1 | 8 | 4 | |||||||||||||||
Net loan charge-offs |
$ | (32 | ) | $ | (22 | ) | $ | (36 | ) | $ | (121 | ) | $ | (143 | ) | |||||
(a) | Included in accrued expense and other liabilities on the balance sheet. |
KeyCorp Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 25
January 25, 2011
Page 25
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(dollars in millions)
12-31-10 | 9-30-10 | 6-30-10 | 3-31-10 | 12-31-09 | ||||||||||||||||
Commercial, financial and agricultural |
$ | 242 | $ | 335 | $ | 489 | $ | 558 | $ | 586 | ||||||||||
Real estate commercial mortgage |
255 | 362 | 404 | 579 | 614 | |||||||||||||||
Real estate construction |
241 | 333 | 473 | 607 | 641 | |||||||||||||||
Total commercial real estate loans |
496 | 695 | 877 | 1,186 | 1,255 | |||||||||||||||
Commercial lease financing |
64 | 84 | 83 | 99 | 113 | |||||||||||||||
Total commercial loans |
802 | 1,114 | 1,449 | 1,843 | 1,954 | |||||||||||||||
Real estate residential mortgage |
98 | 90 | 77 | 72 | 73 | |||||||||||||||
Home equity: |
||||||||||||||||||||
Key Community Bank |
102 | 106 | 112 | 111 | 107 | |||||||||||||||
Other |
18 | 16 | 17 | 18 | 21 | |||||||||||||||
Total home equity loans |
120 | 122 | 129 | 129 | 128 | |||||||||||||||
Consumer other Key Community Bank |
4 | 3 | 5 | 4 | 4 | |||||||||||||||
Consumer other: |
||||||||||||||||||||
Marine |
42 | 41 | 41 | 16 | 26 | |||||||||||||||
Other |
2 | 2 | 2 | 1 | 2 | |||||||||||||||
Total consumer other |
44 | 43 | 43 | 17 | 28 | |||||||||||||||
Total consumer loans |
266 | 258 | 254 | 222 | 233 | |||||||||||||||
Total nonperforming loans |
1,068 | 1,372 | 1,703 | 2,065 | 2,187 | |||||||||||||||
Nonperforming loans held for sale |
106 | 230 | 221 | 195 | 116 | |||||||||||||||
OREO |
166 | 221 | 200 | 175 | 191 | |||||||||||||||
Allowance for OREO losses |
(37 | ) | (58 | ) | (64 | ) | (45 | ) | (23 | ) | ||||||||||
OREO, net of allowance |
129 | 163 | 136 | 130 | 168 | |||||||||||||||
Other nonperforming assets |
35 | 36 | 26 | 38 | 39 | |||||||||||||||
Total nonperforming assets |
$ | 1,338 | $ | 1,801 | $ | 2,086 | $ | 2,428 | $ | 2,510 | ||||||||||
Accruing loans past due 90 days or more |
$ | 239 | $ | 152 | $ | 240 | $ | 434 | $ | 331 | ||||||||||
Accruing loans past due 30 through 89 days |
476 | 662 | 610 | 639 | 933 | |||||||||||||||
Restructured loans accruing and nonaccruing (a) |
297 | 360 | 343 | 323 | 364 | |||||||||||||||
Restructured loans included in nonperforming loans (a) |
202 | 228 | 213 | 226 | 364 | |||||||||||||||
Nonperforming assets from discontinued operations
education lending business |
40 | 38 | 40 | 43 | 14 | |||||||||||||||
Nonperforming loans to period-end portfolio loans |
2.13 | % | 2.67 | % | 3.19 | % | 3.69 | % | 3.72 | % | ||||||||||
Nonperforming assets to period-end portfolio loans
plus OREO and other nonperforming assets |
2.66 | 3.48 | 3.88 | 4.31 | 4.25 |
(a) | Restructured loans (i.e. troubled debt restructurings) are those for which Key, for reasons related to a borrowers financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance. |
KeyCorp
Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 26
January 25, 2011
Page 26
Summary of Changes in Nonperforming Loans From Continuing Operations
(in millions)
(in millions)
4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | ||||||||||||||||
Balance at beginning of period |
$ | 1,372 | $ | 1,703 | $ | 2,065 | $ | 2,187 | $ | 2,290 | ||||||||||
Loans placed on nonaccrual status |
544 | 691 | 682 | 746 | 1,141 | |||||||||||||||
Charge-offs |
(343 | ) | (430 | ) | (492 | ) | (557 | ) | (750 | ) | ||||||||||
Loans sold |
(162 | ) | (92 | ) | (136 | ) | (15 | ) | (70 | ) | ||||||||||
Payments |
(250 | ) | (200 | ) | (185 | ) | (102 | ) | (237 | ) | ||||||||||
Transfers to OREO |
(14 | ) | (39 | ) | (66 | ) | (20 | ) | (98 | ) | ||||||||||
Transfers to nonperforming loans held for sale |
(41 | ) | (163 | ) | (82 | ) | (59 | ) | (23 | ) | ||||||||||
Transfers to other nonperforming assets |
(3 | ) | (7 | ) | (36 | ) | (3 | ) | (4 | ) | ||||||||||
Loans returned to accrual status |
(35 | ) | (91 | ) | (47 | ) | (112 | ) | (62 | ) | ||||||||||
Balance at end of period |
$ | 1,068 | $ | 1,372 | $ | 1,703 | $ | 2,065 | $ | 2,187 | ||||||||||
Summary of Changes in Nonperforming Loans Held For Sale From Continuing Operations
(in millions)
(in millions)
4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | ||||||||||||||||
Balance at beginning of period |
$ | 230 | $ | 221 | $ | 195 | $ | 116 | $ | 304 | ||||||||||
Transfers in |
41 | 162 | 86 | 129 | 71 | |||||||||||||||
Net advances / (payments) |
(26 | ) | (35 | ) | 1 | | 3 | |||||||||||||
Loans sold |
(139 | ) | (50 | ) | (53 | ) | (38 | ) | (228 | ) | ||||||||||
Transfers to OREO |
| (58 | ) | (6 | ) | (6 | ) | | ||||||||||||
Valuation adjustments |
| (6 | ) | (2 | ) | (6 | ) | (18 | ) | |||||||||||
Loans returned to accrual status / other |
| (4 | ) | | | (16 | ) | |||||||||||||
Balance at end of period |
$ | 106 | $ | 230 | $ | 221 | $ | 195 | $ | 116 | ||||||||||
Summary of Changes in Other Real Estate Owned, Net of Allowance, From Continuing Operations
(in millions)
(in millions)
4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | ||||||||||||||||
Balance at beginning of period |
$ | 163 | $ | 136 | $ | 130 | $ | 168 | $ | 147 | ||||||||||
Properties acquired nonperforming loans |
14 | 97 | 72 | 26 | 98 | |||||||||||||||
Valuation adjustments |
(9 | ) | (7 | ) | (24 | ) | (28 | ) | (12 | ) | ||||||||||
Properties sold |
(39 | ) | (63 | ) | (42 | ) | (36 | ) | (65 | ) | ||||||||||
Balance at end of period |
$ | 129 | $ | 163 | $ | 136 | $ | 130 | $ | 168 | ||||||||||
KeyCorp
Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 27
January 25, 2011
Page 27
Line of Business Results
(dollars in millions)
(dollars in millions)
Key Community Bank
Percent change 4Q10 vs. | ||||||||||||||||||||||||||||
4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | 3Q10 | 4Q09 | ||||||||||||||||||||||
Summary of operations |
||||||||||||||||||||||||||||
Total revenue (TE) |
$ | 601 | $ | 601 | $ | 608 | $ | 599 | $ | 627 | | (4.1 | )% | |||||||||||||||
Provision for loan losses |
74 | 75 | 121 | 142 | 230 | (1.3 | )% | (67.8 | ) | |||||||||||||||||||
Noninterest expense |
456 | 458 | 451 | 465 | 489 | (.4 | ) | (6.7 | ) | |||||||||||||||||||
Net income (loss) attributable to Key |
61 | 57 | 35 | 7 | (40 | ) | 7.0 | N/M | ||||||||||||||||||||
Average loans and leases |
26,437 | 26,779 | 27,218 | 27,769 | 28,321 | (1.3 | ) | (6.7 | ) | |||||||||||||||||||
Average deposits |
48,143 | 48,703 | 50,421 | 51,459 | 52,640 | (1.1 | ) | (8.5 | ) | |||||||||||||||||||
Net loan charge-offs |
115 | 129 | 148 | 116 | 148 | (10.9 | ) | (22.3 | ) | |||||||||||||||||||
Net loan charge-offs to average loans |
1.73 | % | 1.91 | % | 2.18 | % | 1.69 | % | 2.07 | % | N/A | N/A | ||||||||||||||||
Nonperforming assets at period end |
$ | 497 | $ | 567 | $ | 561 | $ | 597 | $ | 544 | (12.3 | ) | (8.6 | ) | ||||||||||||||
Return on average allocated equity |
6.87 | % | 6.26 | % | 3.80 | % | .76 | % | (4.42) | % | N/A | N/A | ||||||||||||||||
Average full-time equivalent employees |
8,291 | 8,306 | 8,246 | 8,187 | 8,227 | (.2 | ) | .8 | ||||||||||||||||||||
Supplementary information (lines of business) |
||||||||||||||||||||||||||||
Regional Banking |
||||||||||||||||||||||||||||
Total revenue (TE) |
$ | 474 | $ | 483 | $ | 495 | $ | 490 | $ | 510 | (1.9) | % | (7.1 | )% | ||||||||||||||
Provision for loan losses |
77 | 105 | 57 | 115 | 139 | (26.7 | ) | (44.6 | ) | |||||||||||||||||||
Noninterest expense |
411 | 415 | 408 | 420 | 429 | (1.0 | ) | (4.2 | ) | |||||||||||||||||||
Net income (loss) attributable to Key |
8 | (9 | ) | 31 | (16 | ) | (19 | ) | N/M | N/M | ||||||||||||||||||
Average loans and leases |
17,811 | 18,079 | 18,405 | 18,753 | 19,076 | (1.5 | ) | (6.6 | ) | |||||||||||||||||||
Average deposits |
42,390 | 43,348 | 45,234 | 46,197 | 47,569 | (2.2 | ) | (10.9 | ) | |||||||||||||||||||
Net loan charge-offs |
77 | 89 | 82 | 96 | 82 | (13.5 | ) | (6.1 | ) | |||||||||||||||||||
Net loan charge-offs to average loans |
1.72 | % | 1.95 | % | 1.79 | % | 2.08 | % | 1.71 | % | N/A | N/A | ||||||||||||||||
Nonperforming assets at period end |
$ | 326 | $ | 350 | $ | 339 | $ | 327 | $ | 319 | (6.9 | ) | 2.2 | |||||||||||||||
Return on average allocated equity |
1.32 | % | (1.47) | % | 5.09 | % | (2.66) | % | (3.24) | % | N/A | N/A | ||||||||||||||||
Average full-time equivalent employees |
7,930 | 7,953 | 7,891 | 7,836 | 7,877 | (.3 | ) | .7 | ||||||||||||||||||||
Commercial Banking |
||||||||||||||||||||||||||||
Total revenue (TE) |
$ | 127 | $ | 118 | $ | 113 | $ | 109 | $ | 117 | 7.6 | % | 8.5 | % | ||||||||||||||
Provision for loan losses |
(3 | ) | (30 | ) | 64 | 27 | 91 | N/M | (103.3 | ) | ||||||||||||||||||
Noninterest expense |
45 | 43 | 43 | 45 | 60 | 4.7 | (25.0 | ) | ||||||||||||||||||||
Net income (loss) attributable to Key |
53 | 66 | 4 | 23 | (21 | ) | (19.7 | ) | N/M | |||||||||||||||||||
Average loans and leases |
8,626 | 8,700 | 8,813 | 9,016 | 9,245 | (.9 | ) | (6.7 | ) | |||||||||||||||||||
Average deposits |
5,753 | 5,355 | 5,187 | 5,262 | 5,071 | 7.4 | 13.4 | |||||||||||||||||||||
Net loan charge-offs |
38 | 40 | 66 | 20 | 66 | (5.0 | ) | (42.4 | ) | |||||||||||||||||||
Net loan charge-offs to average loans |
1.75 | % | 1.82 | % | 3.00 | % | .90 | % | 2.83 | % | N/A | N/A | ||||||||||||||||
Nonperforming assets at period end |
$ | 171 | $ | 217 | $ | 222 | $ | 270 | $ | 225 | (21.2 | ) | (24.0 | ) | ||||||||||||||
Return on average allocated equity |
18.82 | % | 22.04 | % | 1.28 | % | 7.30 | % | (6.57) | % | N/A | N/A | ||||||||||||||||
Average full-time equivalent employees |
361 | 353 | 355 | 351 | 350 | 2.3 | 3.1 |
KeyCorp
Reports Fourth Quarter and Full Year 2010 Profit
January 25, 2011
Page 28
January 25, 2011
Page 28
Line of Business Results (continued)
(dollars in millions)
(dollars in millions)
Key Corporate Bank
Percent change 4Q10 vs. | ||||||||||||||||||||||||||||
4Q10 | 3Q10 | 2Q10 | 1Q10 | 4Q09 | 3Q10 | 4Q09 | ||||||||||||||||||||||
Summary of operations |
||||||||||||||||||||||||||||
Total revenue (TE) |
$ | 464 | $ | 430 | $ | 409 | $ | 376 | $ | 340 | 7.9 | % | 36.5 | % | ||||||||||||||
Provision for loan losses |
(263 | ) | (25 | ) | 99 | 161 | 382 | N/M | (168.8 | ) | ||||||||||||||||||
Noninterest expense |
249 | 248 | 259 | 268 | 300 | .4 | (17.0 | ) | ||||||||||||||||||||
Net income (loss) attributable to Key |
302 | 130 | 34 | (31 | ) | (213 | ) | 132.3 | N/M | |||||||||||||||||||
Average loans and leases |
18,601 | 19,534 | 20,948 | 22,440 | 24,011 | (4.8 | ) | (22.5 | ) | |||||||||||||||||||
Average loans held for sale |
253 | 380 | 381 | 240 | 431 | (33.4 | ) | (41.3 | ) | |||||||||||||||||||
Average deposits |
12,961 | 11,779 | 12,474 | 12,416 | 13,257 | 10.0 | (2.2 | ) | ||||||||||||||||||||
Net loan charge-offs |
61 | 122 | 173 | 251 | 411 | (50.0 | ) | (85.2 | ) | |||||||||||||||||||
Net loan charge-offs to average loans |
1.30 | % | 2.48 | % | 3.31 | % | 4.54 | % | 6.79 | % | N/A | N/A | ||||||||||||||||
Nonperforming assets at period end |
$ | 575 | $ | 886 | $ | 1,089 | $ | 1,285 | $ | 1,326 | (35.1 | ) | (56.6 | ) | ||||||||||||||
Return on average allocated equity |
41.53 | % | 16.65 | % | 4.02 | % | (3.64 | )% | (22.83 | )% | N/A | N/A | ||||||||||||||||
Average full-time equivalent employees |
2,308 | 2,353 | 2,327 | 2,370 | 2,400 | (1.9 | ) | (3.8 | ) | |||||||||||||||||||
Supplementary information (lines of business) |
||||||||||||||||||||||||||||
Real Estate Capital and Corporate Banking Services |
||||||||||||||||||||||||||||
Total revenue (TE) |
$ | 179 | $ | 175 | $ | 176 | $ | 144 | $ | 92 | 2.3 | % | 94.6 | % | ||||||||||||||
Provision for loan losses |
(211 | ) | 22 | 77 | 145 | 304 | N/M | (169.4 | ) | |||||||||||||||||||
Noninterest expense |
93 | 99 | 108 | 116 | 117 | (6.1 | ) | (20.5 | ) | |||||||||||||||||||
Net income (loss) attributable to Key |
187 | 34 | (5 | ) | (72 | ) | (206 | ) | 450.0 | N/M | ||||||||||||||||||
Average loans and leases |
9,380 | 10,300 | 11,465 | 12,340 | 13,256 | (8.9 | ) | (29.2 | ) | |||||||||||||||||||
Average loans held for sale |
199 | 202 | 194 | 115 | 228 | (1.5 | ) | (12.7 | ) | |||||||||||||||||||
Average deposits |
10,604 | 9,360 | 9,811 | 9,835 | 10,602 | 13.3 | | |||||||||||||||||||||
Net loan charge-offs |
57 | 103 | 142 | 207 | 381 | (44.7 | ) | (85.0 | ) | |||||||||||||||||||
Net loan charge-offs to average loans |
2.41 | % | 3.97 | % | 4.97 | % | 6.80 | % | 11.40 | % | N/A | N/A | ||||||||||||||||
Nonperforming assets at period end |
$ | 442 | $ | 719 | $ | 867 | $ | 1,067 | $ | 1,094 | (38.5 | ) | (59.6 | ) | ||||||||||||||
Return on average allocated equity |
43.16 | % | 7.14 | % | (.97 | )% | (14.06 | )% | (36.12 | )% | N/A | N/A | ||||||||||||||||
Average full-time equivalent employees |
1,028 | 1,039 | 1,052 | 1,078 | 1,093 | (1.1 | ) | (5.9 | ) | |||||||||||||||||||
Equipment Finance |
||||||||||||||||||||||||||||
Total revenue (TE) |
$ | 66 | $ | 63 | $ | 61 | $ | 61 | $ | 66 | 4.8 | % | | |||||||||||||||
Provision for loan losses |
(16 | ) | (12 | ) | 10 | 4 | 65 | N/M | (124.6 | )% | ||||||||||||||||||
Noninterest expense |
50 | 53 | 48 | 45 | 57 | (5.7 | ) | (12.3 | ) | |||||||||||||||||||
Net income (loss) attributable to Key |
20 | 14 | 2 | 8 | (35 | ) | 42.9 | N/M | ||||||||||||||||||||
Average loans and leases |
4,656 | 4,515 | 4,478 | 4,574 | 4,610 | 3.1 | 1.0 | |||||||||||||||||||||
Average loans held for sale |
| 2 | 16 | 1 | | (100.0 | ) | N/M | ||||||||||||||||||||
Average deposits |
2 | 5 | 5 | 6 | 7 | (60.0 | ) | (71.4 | ) | |||||||||||||||||||
Net loan charge-offs |
7 | 25 | 18 | 18 | 21 | (72.0 | ) | (66.7 | ) | |||||||||||||||||||
Net loan charge-offs to average loans |
.60 | % | 2.20 | % | 1.61 | % | 1.60 | % | 1.81 | % | N/A | N/A | ||||||||||||||||
Nonperforming assets at period end |
$ | 68 | $ | 86 | $ | 106 | $ | 111 | $ | 122 | (20.9 | ) | (44.3 | ) | ||||||||||||||
Return on average allocated equity |
23.55 | % | 16.73 | % | 2.25 | % | 8.67 | % | (37.43 | )% | N/A | N/A | ||||||||||||||||
Average full-time equivalent employees |
529 | 536 | 549 | 563 | 586 | (1.3 | ) | (9.7 | ) | |||||||||||||||||||
Institutional and Capital Markets |
||||||||||||||||||||||||||||
Total revenue (TE) |
$ | 219 | $ | 192 | $ | 172 | $ | 171 | $ | 182 | 14.1 | % | 20.3 | % | ||||||||||||||
Provision for loan losses |
(36 | ) | (35 | ) | 12 | 12 | 13 | N/M | (376.9 | ) | ||||||||||||||||||
Noninterest expense |
106 | 96 | 103 | 107 | 126 | 10.4 | (15.9 | ) | ||||||||||||||||||||
Net income (loss) attributable to Key |
95 | 82 | 37 | 33 | 28 | 15.9 | 239.3 | |||||||||||||||||||||
Average loans and leases |
4,565 | 4,719 | 5,005 | 5,526 | 6,145 | (3.3 | ) | (25.7 | ) | |||||||||||||||||||
Average loans held for sale |
54 | 176 | 171 | 124 | 203 | (69.3 | ) | (73.4 | ) | |||||||||||||||||||
Average deposits |
2,355 | 2,414 | 2,658 | 2,575 | 2,648 | (2.4 | ) | (11.1 | ) | |||||||||||||||||||
Net loan charge-offs |
(3 | ) | (6 | ) | 13 | 26 | 9 | N/M | (133.3 | ) | ||||||||||||||||||
Net loan charge-offs to average loans |
(.26 | )% | (.50 | )% | 1.04 | % | 1.91 | % | .58 | % | N/A | N/A | ||||||||||||||||
Nonperforming assets at period end |
$ | 65 | $ | 81 | $ | 116 | $ | 107 | $ | 110 | (19.8 | ) | (40.9 | ) | ||||||||||||||
Return on average allocated equity |
45.46 | % | 37.18 | % | 15.22 | % | 13.36 | % | 10.41 | % | N/A | N/A | ||||||||||||||||
Average full-time equivalent employees |
751 | 778 | 726 | 729 | 721 | (3.5 | ) | 4.2 |
TE = Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful |