/FIRST AND FINAL ADD -- CLF003 -- KeyCorp Earnings/

Share Name	Share Symbol	Market	Type
Keycorp	TG:KEY	Tradegate	Ordinary Share

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.21	1.61%	13.252	13.018	13.278	13.252	13.252	13.252	2	09:19:11

Keycorp (TG:KEY)
Historical Stock Chart

From Aug 2019 to Aug 2024

Financial Highlights (dollars in millions, except per share amounts) Three months ended 12-31-06 9-30-06 12-31-05 Summary of operations Net interest income (TE) $744 $726 $716 Noninterest income 558 543 552 Total revenue (TE) 1,302 1,269 1,268 Provision for loan losses 53 35 35 Noninterest expense 809 790 812 Income from continuing operations 311 305 284 Income (loss) from discontinued operations, net of tax (165) 7 12 Net income 146 312 296 Per common share Income from continuing operations $.77 $.76 $.70 Income from continuing operations - assuming dilution .76 .74 .69 Income (loss) from discontinued operations (.41) .02 .03 Income (loss) from discontinued operations - assuming dilution (.40) .02 .03 Net income .36 .77 .72 Net income - assuming dilution .36 .76 .72 Cash dividends declared .345 .345 .325 Book value at period end 19.30 19.73 18.69 Market price at period end 38.03 37.44 32.93 Performance ratios - from continuing operations Return on average total assets 1.33 % 1.31 % 1.26 % Return on average equity 15.63 15.52 14.96 Net interest margin (TE) 3.66 3.61 3.68 Performance ratios - from consolidated operations Return on average total assets .61 % 1.30 % 1.27 % Return on average equity 7.34 15.88 15.59 Net interest margin (TE) 3.69 3.63 3.71 Capital ratios at period end Equity to assets 8.34 % 8.26 % 8.16 % Tangible equity to tangible assets 7.01 6.81 6.68 Tier 1 risk-based capital (a) 8.30 8.02 7.59 Total risk-based capital (a) 12.53 12.13 11.47 Leverage (a) 8.94 8.89 8.53 Asset quality Net loan charge-offs $54 $43 $164 Net loan charge-offs to average loans from continuing operations .33 % .26 % 1.02 % Allowance for loan losses $944 $944 $966 Allowance for loan losses to period- end loans 1.43 % 1.44 % 1.45 % Allowance for loan losses to nonperforming loans 439.07 423.32 348.74 Nonperforming loans at period end $215 $223 $277 Nonperforming assets at period end 273 329 307 Nonperforming loans to period-end portfolio loans .33 % .34 % .42 % Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets .41 .50 .46 Trust and brokerage assets Assets under management $84,699 $84,060 $77,144 Nonmanaged and brokerage assets 56,292 55,221 56,509 Other data Average full-time equivalent employees 20,100 20,264 19,417 KeyCenters 950 949 947 Taxable-equivalent adjustment $32 $21 $30 Financial Highlights (continued) (dollars in millions, except per share amounts) Twelve months ended 12-31-06 12-31-05 Summary of operations Net interest income (TE) $2,918 $2,777 Noninterest income 2,127 2,067 Total revenue (TE) 5,045 4,844 Provision for loan losses 150 143 Noninterest expense 3,149 3,054 Income from continuing operations 1,193 1,090 Income (loss) from discontinued operations, net of tax (143) 39 Net income 1,055 1,129 Per common share Income from continuing operations $2.95 $2.67 Income from continuing operations - assuming dilution 2.91 2.63 Income (loss) from discontinued operations (.35) .10 Income (loss) from discontinued operations - assuming dilution (.35) .09 Net income 2.61 2.76 Net income - assuming dilution 2.57 2.73 Cash dividends declared 1.38 1.30 Performance ratios - from continuing operations Return on average total assets 1.30 % 1.24 % Return on average equity 15.43 14.88 Net interest margin (TE) 3.67 3.65 Performance ratios - from consolidated operations Return on average total assets 1.12 % 1.24 % Return on average equity 13.64 15.42 Net interest margin (TE) 3.69 3.69 Asset quality Net loan charge-offs $170 $315 Net loan charge-offs to average loans from continuing operations .26 % .51 % Other data Average full-time equivalent employees 20,006 19,485 Taxable-equivalent adjustment $103 $121 (a) 12-31-06 ratio is estimated. TE = Taxable Equivalent Consolidated Balance Sheets (dollars in millions) 12-31-06 9-30-06 12-31-05 Assets Loans $65,826 $65,551 $66,478 Loans held for sale 3,637 7,150 3,381 Investment securities 41 41 91 Securities available for sale 7,827 7,441 7,269 Short-term investments 1,407 1,582 1,592 Other investments 1,352 1,367 1,332 Total earning assets 80,090 83,132 80,143 Allowance for loan losses (944) (944) (966) Cash and due from banks 2,264 2,957 3,108 Premises and equipment 595 567 575 Goodwill 1,202 1,372 1,355 Other intangible assets 120 127 125 Corporate-owned life insurance 2,782 2,754 2,690 Derivative assets 1,091 915 1,039 Accrued income and other assets 5,137 5,275 5,057 Total assets $92,337 $96,155 $93,126 Liabilities Deposits in domestic offices: NOW and money market deposit accounts $24,340 $25,150 $24,241 Savings deposits 1,642 1,672 1,840 Certificates of deposit ($100,000 or more) 5,941 5,734 5,156 Other time deposits 11,956 11,848 11,170 Total interest-bearing 43,879 44,404 42,407 Noninterest-bearing 13,553 13,396 13,335 Deposits in foreign office - interest-bearing 1,684 3,629 3,023 Total deposits 59,116 61,429 58,765 Federal funds purchased and securities sold under repurchase agreements 3,643 4,701 4,835 Bank notes and other short-term borrowings 1,192 2,594 1,780 Derivative liabilities 922 844 1,060 Accrued expense and other liabilities 5,228 4,986 5,149 Long-term debt 14,533 13,654 13,939 Total liabilities 84,634 88,208 85,528 Shareholders' equity Preferred stock -- -- -- Common shares 492 492 492 Capital surplus 1,602 1,588 1,534 Retained earnings 8,377 8,371 7,882 Treasury stock, at cost (2,584) (2,434) (2,204) Accumulated other comprehensive loss (184) (70) (106) Total shareholders' equity 7,703 7,947 7,598 Total liabilities and shareholders' equity $92,337 $96,155 $93,126 Common shares outstanding (000) 399,153 402,748 406,624 Consolidated Statements of Income (dollars in millions, except per share amounts) Three months ended Twelve months ended 12-31-06 9-30-06 12-31-05 12-31-06 12-31-05 Interest income Loans $1,187 $1,178 $1,026 $4,561 $3,693 Loans held for sale 90 94 64 325 254 Investment securities -- 1 -- 2 3 Securities available for sale 96 84 84 347 327 Short-term investments 16 16 18 63 52 Other investments 24 16 10 82 54 Total interest income 1,413 1,389 1,202 5,380 4,383 Interest expense Deposits 440 428 295 1,576 976 Federal funds purchased and securities sold under repurchase agreements 37 30 26 107 71 Bank notes and other short-term borrowings 19 24 24 94 82 Long-term debt 205 202 171 788 598 Total interest expense 701 684 516 2,565 1,727 Net interest income 712 705 686 2,815 2,656 Provision for loan losses 53 35 35 150 143 Net interest income after provision for loan losses 659 670 651 2,665 2,513 Noninterest income Trust and investment services income 142 137 134 553 542 Service charges on deposit accounts 77 78 76 304 304 Investment banking and capital markets income 69 44 61 230 229 Operating lease income 63 58 50 229 191 Letter of credit and loan fees 55 48 48 188 181 Corporate-owned life insurance income 31 23 31 105 109 Electronic banking fees 27 27 26 105 96 Net gains from loan securitizations and sales 42 14 28 76 69 Net securities gains (losses) 3 (7) 3 1 1 Other income 49 121 95 336 345 Total noninterest income 558 543 552 2,127 2,067 Noninterest expense Personnel 447 418 411 1,692 1,588 Net occupancy 68 62 67 250 276 Computer processing 55 52 57 212 209 Operating lease expense 50 48 40 184 158 Professional fees 33 28 42 134 126 Equipment 24 26 26 102 110 Marketing 27 32 23 97 88 Other expense 105 124 146 478 499 Total noninterest expense 809 790 812 3,149 3,054 Income from continuing operations before income taxes and cumulative effect of accounting change 408 423 391 1,643 1,526 Income taxes 97 118 107 450 436 Income from continuing operations before cumulative effect of accounting change 311 305 284 1,193 1,090 Income (loss) from discontinued operations, net of tax (165) 7 12 (143) 39 Income before cumulative effect of accounting change 146 312 296 1,050 1,129 Cumulative effect of change in accounting for forfeited stock-based awards, net of tax -- -- -- 5 -- Net income $146 $312 $296 $1,055 $1,129 Per common share: Income from continuing operations before cumulative effect of accounting change $.77 $.76 $.70 $2.95 $2.67 Income before cumulative effect of accounting change .36 .77 .72 2.60 2.76 Net income .36 .77 .72 2.61 2.76 Per common share - assuming dilution: Income from continuing operations before cumulative effect of accounting change $.76 $.74 $.69 $2.91 $2.63 Income before cumulative effect of accounting change .36 .76 .72 2.56 2.73 Net income .36 .76 .72 2.57 2.73 Cash dividends declared per common share $.345 $.345 $.325 $1.38 $1.30 Weighted-average common shares outstanding (000) 402,329 403,780 408,431 404,490 408,981 Weighted-average common shares and potential common shares outstanding (000) 407,828 409,428 412,542 410,222 414,014 Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates From Continuing Operations (dollars in millions) Fourth Quarter 2006 Average Balance Interest Yield/Rate Assets Loans: (a,b) Commercial, financial and agricultural (c) $21,384 $400 7.42 % Real estate - commercial mortgage 8,399 167 7.86 Real estate - construction 8,347 174 8.25 Commercial lease financing (c) 9,891 160 6.47 Total commercial loans 48,021 901 7.44 Real estate - residential 1,428 24 6.59 Home equity 10,896 197 7.22 Consumer - direct 1,557 34 8.63 Consumer - indirect 3,671 62 6.85 Total consumer loans 17,552 317 7.21 Total loans 65,573 1,218 7.38 Loans held for sale 4,547 90 7.86 Investment securities (a) 38 1 7.68 Securities available for sale (d) 7,765 96 4.88 Short-term investments 1,584 16 4.04 Other investments (d) 1,351 24 6.76 Total earning assets 80,858 1,445 7.09 Allowance for loan losses (941) Accrued income and other assets 13,129 Total assets $93,046 Liabilities NOW and money market deposit accounts $25,136 198 3.13 Savings deposits 1,651 1 .19 Certificates of deposit ($100,000 or more) (e) 6,013 75 4.93 Other time deposits 11,921 136 4.50 Deposits in foreign office (f) 2,245 30 5.55 Total interest-bearing deposits 46,966 440 3.72 Federal funds purchased and securities sold under repurchase agreements (f) 2,816 37 5.21 Bank notes and other short-term borrowings 1,814 19 4.17 Long-term debt (e) 14,092 205 5.80 Total interest-bearing liabilities 65,688 701 4.24 Noninterest-bearing deposits 13,424 Accrued expense and other liabilities 6,041 Total liabilities 85,153 Shareholders' equity 7,893 Total liabilities and shareholders' equity $93,046 Interest rate spread (TE) 2.85 % Net interest income (TE) and net interest margin (TE) 744 3.66 % TE adjustment (a) 32 Net interest income, GAAP basis $712 Third Quarter 2006 Average Balance Interest Yield/Rate Assets Loans: (a,b) Commercial, financial and agricultural (c) $21,648 $400 7.34 % Real estate - commercial mortgage 8,106 164 8.04 Real estate - construction 7,965 171 8.51 Commercial lease financing (c) 9,850 144 5.83 Total commercial loans 47,569 879 7.34 Real estate - residential 1,415 23 6.49 Home equity 11,017 200 7.19 Consumer - direct 1,585 36 9.07 Consumer - indirect 3,594 61 6.83 Total consumer loans 17,611 320 7.23 Total loans 65,180 1,199 7.31 Loans held for sale 4,578 94 8.17 Investment securities (a) 42 1 8.12 Securities available for sale (d) 7,216 84 4.61 Short-term investments 1,588 16 3.78 Other investments (d) 1,363 16 4.67 Total earning assets 79,967 1,410 7.00 Allowance for loan losses (951) Accrued income and other assets 13,247 Total assets $92,263 Liabilities NOW and money market deposit accounts $25,230 194 3.05 Savings deposits 1,700 1 .19 Certificates of deposit ($100,000 or more) (e) 5,517 67 4.82 Other time deposits 11,700 127 4.29 Deposits in foreign office (f) 2,820 39 5.55 Total interest-bearing deposits 46,967 428 3.61 Federal funds purchased and securities sold under repurchase agreements (f) 2,315 30 5.05 Bank notes and other short-term borrowings 2,285 24 4.29 Long-term debt (e) 13,763 202 5.83 Total interest-bearing liabilities 65,330 684 4.15 Noninterest-bearing deposits 13,073 Accrued expense and other liabilities 6,063 Total liabilities 84,466 Shareholders' equity 7,797 Total liabilities and shareholders' equity $92,263 Interest rate spread (TE) 2.85 % Net interest income (TE) and net interest margin (TE) 726 3.61 % TE adjustment (a) 21 Net interest income, GAAP basis $705 Fourth Quarter 2005 Average Balance Interest Yield/Rate Assets Loans: (a,b) Commercial, financial and agricultural (c) $19,992 $315 6.25 % Real estate - commercial mortgage 8,580 151 6.98 Real estate - construction 6,896 129 7.42 Commercial lease financing (c) 10,285 154 6.01 Total commercial loans 45,753 749 6.51 Real estate - residential 1,460 23 6.22 Home equity 11,074 183 6.61 Consumer - direct 1,785 44 9.68 Consumer - indirect 3,340 56 6.71 Total consumer loans 17,659 306 6.91 Total loans 63,412 1,055 6.62 Loans held for sale 3,592 64 7.05 Investment securities (a) 95 1 5.81 Securities available for sale (d) 7,034 84 4.77 Short-term investments 2,069 18 3.23 Other investments (d) 1,297 10 3.09 Total earning assets 77,499 1,232 6.32 Allowance for loan losses (1,079) Accrued income and other assets 12,862 Total assets $89,282 Liabilities NOW and money market deposit accounts $23,947 127 2.11 Savings deposits 1,858 1 .27 Certificates of deposit ($100,000 or more)(e) 5,006 51 4.06 Other time deposits 10,951 96 3.46 Deposits in foreign office (f) 1,869 20 4.21 Total interest-bearing deposits 43,631 295 2.69 Federal funds purchased and securities sold under repurchase agreements (f) 2,862 26 3.64 Bank notes and other short-term borrowings 2,607 24 3.67 Long-term debt (e) 13,860 171 4.89 Total interest-bearing liabilities 62,960 516 3.26 Noninterest-bearing deposits 12,576 Accrued expense and other liabilities 6,212 Total liabilities 81,748 Shareholders' equity 7,534 Total liabilities and shareholders' equity $89,282 Interest rate spread (TE) 3.06 % Net interest income (TE) and net interest margin (TE) 716 3.68 % TE adjustment (a) 30 Net interest income, GAAP basis $686 (a) Interest income on tax-exempt securities and loans is adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%. (b) For purposes of these computations, nonaccrual loans are included in average loan balances. (c) During the first quarter of 2006, Key reclassified $760 million of average loans and related interest income from the commercial lease financing component of the commercial loan portfolio to the commercial, financial and agricultural component to more accurately reflect the nature of these receivables. Balances presented for prior periods were not reclassified as the historical data was not available. (d) Yield is calculated on the basis of amortized cost. (e) Rate calculation excludes basis adjustments related to fair value hedges. (f) Results from continuing operations exclude the dollar amount of liabilities assumed to support interest-earning assets held by the discontinued Champion Mortgage finance business. The interest expense related to these liabilities, which is also excluded from continuing operations, is calculated using an internal funds transfer pricing rate. TE = Taxable Equivalent GAAP = U.S. generally accepted accounting principles Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates From Continuing Operations (dollars in millions) Twelve months ended December 31, 2006 Average Balance Interest Yield/Rate Assets Loans: (a,b) Commercial, financial and agricultural (c) $21,679 $1,547 7.13 % Real estate - commercial mortgage 8,167 628 7.68 Real estate - construction 7,802 635 8.14 Commercial lease financing (c) 9,773 595 6.08 Total commercial loans 47,421 3,405 7.18 Real estate - residential 1,430 93 6.49 Home equity 10,971 775 7.07 Consumer - direct 1,639 152 9.26 Consumer - indirect 3,535 238 6.73 Total consumer loans 17,575 1,258 7.16 Total loans 64,996 4,663 7.17 Loans held for sale 4,168 325 7.80 Investment securities (a) 47 3 7.43 Securities available for sale (d) 7,302 347 4.71 Short-term investments 1,648 63 3.82 Other investments (d) 1,362 82 5.78 Total earning assets 79,523 5,483 6.88 Allowance for loan losses (952) Accrued income and other assets 13,131 Total assets $91,702 Liabilities NOW and money market deposit accounts $25,044 710 2.84 Savings deposits 1,728 4 .23 Certificates of deposit ($100,000 or more) (e) 5,581 261 4.67 Other time deposits 11,592 481 4.14 Deposits in foreign office (f) 2,305 120 5.22 Total interest-bearing deposits 46,250 1,576 3.41 Federal funds purchased and securities sold under repurchase agreements (f) 2,215 107 4.80 Bank notes and other short-term borrowings 2,284 94 4.12 Long-term debt (e) 13,983 788 5.62 Total interest-bearing liabilities 64,732 2,565 3.96 Noninterest-bearing deposits 13,053 Accrued expense and other liabilities 6,183 Total liabilities 83,968 Shareholders' equity 7,734 Total liabilities and shareholders' equity $91,702 Interest rate spread (TE) 2.92 % Net interest income (TE) and net interest margin (TE) 2,918 3.67 % TE adjustment (a) 103 Net interest income, GAAP basis $2,815 Twelve months ended December 31, 2005 Average Balance Interest Yield/Rate Assets Loans: (a,b) Commercial, financial and agricultural (c) $19,480 $1,083 5.56 % Real estate - commercial mortgage 8,403 531 6.32 Real estate - construction 6,263 418 6.67 Commercial lease financing (c) 10,122 628 6.21 Total commercial loans 44,268 2,660 6.01 Real estate - residential 1,468 90 6.10 Home equity 11,094 687 6.20 Consumer - direct 1,834 158 8.60 Consumer - indirect 3,333 217 6.51 Total consumer loans 17,729 1,152 6.50 Total loans 61,997 3,812 6.15 Loans held for sale 3,637 254 6.99 Investment securities (a) 76 5 7.30 Securities available for sale (d) 7,118 327 4.58 Short-term investments 1,860 52 2.79 Other investments (d) 1,379 54 3.79 Total earning assets 76,067 4,504 5.92 Allowance for loan losses (1,103) Accrued income and other assets 12,945 Total assets $87,909 Liabilities NOW and money market deposit accounts $22,696 360 1.59 Savings deposits 1,941 5 .26 Certificates of deposit ($100,000 or more) (e) 4,957 189 3.82 Other time deposits 10,789 341 3.16 Deposits in foreign office (f) 2,662 81 3.06 Total interest-bearing deposits 43,045 976 2.27 Federal funds purchased and securities sold under repurchase agreements (f) 2,577 71 2.74 Bank notes and other short-term borrowings 2,796 82 2.94 Long-term debt (e) 14,094 598 4.32 Total interest-bearing liabilities 62,512 1,727 2.77 Noninterest-bearing deposits 12,001 Accrued expense and other liabilities 6,073 Total liabilities 80,586 Shareholders' equity 7,323 Total liabilities and shareholders' equity $87,909 Interest rate spread (TE) 3.15 % Net interest income (TE) and net interest margin (TE) 2,777 3.65 % TE adjustment (a) 121 Net interest income, GAAP basis $2,656 (a) Interest income on tax-exempt securities and loans is adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%. (b) For purposes of these computations, nonaccrual loans are included in average loan balances. (c) During the first quarter of 2006, Key reclassified $760 million of average loans and related interest income from the commercial lease financing component of the commercial loan portfolio to the commercial, financial and agricultural component to more accurately reflect the nature of these receivables. Balances presented for prior periods were not reclassified as the historical data was not available. (d) Yield is calculated on the basis of amortized cost. (e) Rate calculation excludes basis adjustments related to fair value hedges. (f) Results from continuing operations exclude the dollar amount of liabilities assumed to support interest-earning assets held by the discontinued Champion Mortgage finance business. The interest expense related to these liabilities, which is also excluded from continuing operations, is calculated using an internal funds transfer pricing rate. TE = Taxable Equivalent GAAP = U.S. generally accepted accounting principles Noninterest Income (in millions) Three months ended Twelve months ended 12-31-06 9-30-06 12-31-05 12-31-06 12-31-05 Trust and investment services income (a) $142 $137 $134 $553 $542 Service charges on deposit accounts 77 78 76 304 304 Investment banking and capital markets income (a) 69 44 61 230 229 Operating lease income 63 58 50 229 191 Letter of credit and loan fees 55 48 48 188 181 Corporate-owned life insurance income 31 23 31 105 109 Electronic banking fees 27 27 26 105 96 Net gains from loan securitizations and sales 42 14 28 76 69 Net securities gains (losses) 3 (7) 3 1 1 Other income: Insurance income 15 18 16 64 51 Loan securitization servicing fees 5 5 4 20 19 Credit card fees 3 8 2 17 14 Net gains from principal investing 5 28 16 53 56 Miscellaneous income 21 62 57 182 205 Total other income 49 121 95 336 345 Total noninterest income $558 $543 $552 $2,127 $2,067 (a) Additional detail provided in tables below. Trust and Investment Services Income (in millions) Three months ended Twelve months ended 12-31-06 9-30-06 12-31-05 12-31-06 12-31-05 Brokerage commissions and fee income $58 $56 $61 $235 $247 Personal asset management and custody fees 40 39 38 156 153 Institutional asset management and custody fees 44 42 35 162 142 Total trust and investment services income $142 $137 $134 $553 $542 Investment Banking and Capital Markets Income (in millions) Three months ended Twelve months ended 12-31-06 9-30-06 12-31-05 12-31-06 12-31-05 Investment banking income $43 $21 $29 $112 $87 Dealer trading and derivatives income 10 7 10 33 54 Income from other investments 6 5 11 43 48 Foreign exchange income 10 11 11 42 40 Total investment banking and capital markets income $69 $44 $61 $230 $229 Noninterest Expense (dollars in millions) Three months ended Twelve months ended 12-31-06 9-30-06 12-31-05 12-31-06 12-31-05 Personnel (a) $447 $418 $411 $1,692 $1,588 Net occupancy 68 62 67 250 276 (b) Computer processing 55 52 57 212 209 Operating lease expense 50 48 40 184 158 Professional fees 33 28 42 134 126 Equipment 24 26 26 102 110 Marketing 27 32 23 97 88 Other expense: Postage and delivery 12 13 13 50 50 Franchise and business taxes (7) 9 9 22 34 Telecommunications 7 7 7 28 30 OREO expense, net 2 2 2 6 8 Credit for losses on lending-related commitments (6) -- -- (6) (7) Miscellaneous expense 97 93 115 378 384 Total other expense 105 124 146 478 499 Total noninterest expense $809 $790 $812 $3,149 $3,054 Average full-time equivalent employees 20,100 20,264 19,417 20,006 19,485 (a) Additional detail provided in table below. (b) Includes a charge of $30 million recorded during the first quarter of 2005 to adjust the accounting for rental expense associated with operating leases from an escalating to a straight-line basis. Personnel Expense (in millions) Three months ended Twelve months ended 12-31-06 9-30-06 12-31-05 12-31-06 12-31-05 Salaries $238 $240 $217 $940 $873 Incentive compensation 120 93 113 388 367 Employee benefits 64 67 54 287 254 Stock-based compensation 17 15 24 64 79 Severance 8 3 3 13 15 Total personnel expense $447 $418 $411 $1,692 $1,588 Loan Composition (dollars in millions) Percent change 12-31-06 vs. 12-31-06 9-30-06 12-31-05 9-30-06 12-31-05 Commercial, financial and agricultural (a) $21,412 $21,556 $20,579 (.7)% 4.0 % Commercial real estate: Commercial mortgage 8,426 8,266 8,360 1.9 .8 Construction 8,209 8,272 7,109 (.8) 15.5 Total commercial real estate loans 16,635 16,538 15,469 .6 7.5 Commercial lease financing (a) 10,259 9,860 10,352 4.0 (.9) Total commercial loans 48,306 47,954 46,400 .7 4.1 Real estate - residential mortgage 1,442 1,407 1,458 2.5 (1.1) Home equity (b) 10,826 10,988 13,488 (1.5) (19.7) Consumer - direct 1,536 1,576 1,794 (2.5) (14.4) Consumer - indirect: Marine 3,077 2,982 2,715 3.2 13.3 Other 639 644 623 (.8) 2.6 Total consumer - indirect loans 3,716 3,626 3,338 2.5 11.3 Total consumer loans 17,520 17,597 20,078 (.4) (12.7) Total loans $65,826 $65,551 $66,478 .4 % (1.0)% Loans Held for Sale Composition (dollars in millions) Percent change 12-31-06 vs. 12-31-06 9-30-06 12-31-05 9-30-06 12-31-05 Commercial, financial and agricultural $47 $219 $85 (78.5)% (44.7)% Real estate - commercial mortgage 946 1,062 525 (10.9) 80.2 Real estate - construction 36 198 51 (81.8) (29.4) Commercial lease financing 3 2 -- 50.0 N/M Real estate - residential mortgage 21 21 11 -- 90.9 Home equity (b) 180 2,485 -- (92.8) N/M Education 2,390 3,147 2,687 (24.1) (11.1) Automobile 14 16 22 (12.5) (36.4) Total loans held for sale $3,637 $7,150 $3,381 (49.1)% 7.6 % (a) On March 31, 2006, Key reclassified $792 million of loans from the commercial lease financing component of the commercial loan portfolio to the commercial, financial and agricultural component to more accurately reflect the nature of these receivables. Balances presented for prior periods were not reclassified as the historical data was not available. (b) On August 1, 2006, Key transferred $2.5 billion of home equity loans from the loan portfolio to loans held for sale in connection with the November sale of the Champion Mortgage loan portfolio. N/M = Not Meaningful Summary of Loan Loss Experience (dollars in millions) Three months ended 12-31-06 9-30-06 12-31-05 Average loans outstanding from continuing operations $65,573 $65,180 $63,412 Allowance for loan losses at beginning of period $944 $956 $1,093 Loans charged off: Commercial, financial and agricultural 18 30 22 Real estate - commercial mortgage 15 3 3 Real estate - construction 1 1 -- Total commercial real estate loans 16 4 3 Commercial lease financing 13 13 140 Total commercial loans 47 47 165 Real estate - residential mortgage 2 2 2 Home equity 8 6 6 Consumer - direct 7 7 10 Consumer - indirect 10 8 4 Total consumer loans 27 23 22 74 70 187 Recoveries: Commercial, financial and agricultural 7 8 7 Real estate - commercial mortgage 2 2 1 Real estate - construction -- 1 1 Total commercial real estate loans 2 3 2 Commercial lease financing 4 9 8 Total commercial loans 13 20 17 Real estate - residential mortgage -- -- -- Home equity 2 2 1 Consumer - direct 2 1 2 Consumer - indirect 3 4 3 Total consumer loans 7 7 6 20 27 23 Net loans charged off (54) (43) (164) Provision for loan losses from continuing operations 53 35 35 Provision for loan losses from discontinued operations -- (4) 1 Foreign currency translation adjustment 1 -- 1 Allowance for loan losses at end of period $944 $944 $966 Net loan charge-offs to average loans from continuing operations .33 % .26 % 1.02 % Allowance for loan losses to period- end loans 1.43 1.44 1.45 Allowance for loan losses to nonperforming loans 439.07 423.32 348.74 Twelve months ended 12-31-06 12-31-05 Average loans outstanding from continuing operations $64,996 $61,997 Allowance for loan losses at beginning of period $966 $1,138 Loans charged off: Commercial, financial and agricultural 92 80 Real estate - commercial mortgage 24 19 Real estate - construction 4 5 Total commercial real estate loans 28 24 Commercial lease financing 40 183 Total commercial loans 160 287 Real estate - residential mortgage 7 7 Home equity 30 26 Consumer - direct 33 38 Consumer - indirect 38 51 Total consumer loans 108 122 268 409 Recoveries: Commercial, financial and agricultural 34 21 Real estate - commercial mortgage 5 3 Real estate - construction 1 3 Total commercial real estate loans 6 6 Commercial lease financing 27 35 Total commercial loans 67 62 Real estate - residential mortgage 1 1 Home equity 7 5 Consumer - direct 7 8 Consumer - indirect 16 18 Total consumer loans 31 32 98 94 Net loans charged off (170) (315) Provision for loan losses from continuing operations 150 143 Provision for loan losses from discontinued operations (3) -- Foreign currency translation adjustment 1 -- Allowance for loan losses at end of period $944 $966 Net loan charge-offs to average loans from continuing operations .26 % .51 % Allowance for loan losses to period- end loans 1.43 1.45 Allowance for loan losses to nonperforming loans 439.07 348.74 Changes in Allowance for Credit Losses on Lending-Related Commitments (in millions) Three months ended Twelve months ended 12-31-06 9-30-06 12-31-05 12-31-06 12-31-05 Balance at beginning of period $59 $59 $59 $59 $66 Credit for losses on lending-related commitments (6) -- -- (6) (7) Balance at end of period (a) $53 $59 $59 $53 $59 Summary of Nonperforming Assets and Past Due Loans (dollars in millions) 12-31-06 9-30-06 6-30-06 3-31-06 12-31-05 Commercial, financial and agricultural $38 $42 $76 $68 $63 Real estate - commercial mortgage 53 41 40 42 43 Real estate - construction 10 37 4 4 2 Total commercial real estate loans 63 78 44 46 45 Commercial lease financing 22 20 29 29 39 Total commercial loans 123 140 149 143 147 Real estate - residential mortgage 29 29 31 43 41 Home equity (b) 50 46 90 97 79 Consumer - direct 2 2 3 6 2 Consumer - indirect 11 6 6 6 8 Total consumer loans 92 83 130 152 130 Total nonperforming loans 215 223 279 295 277 Nonperforming loans held for sale (b) 3 56 1 2 3 OREO 57 52 26 21 25 Allowance for OREO losses (3) (3) (1) (1) (2) OREO, net of allowance 54 49 25 20 23 Other nonperforming assets 1 1 3 3 4 Total nonperforming assets $273 $329 $308 $320 $307 Accruing loans past due 90 days or more $120 $125 $119 $107 $90 Accruing loans past due 30 through 89 days 644 715 600 498 491 Nonperforming loans to period-end portfolio loans .33 % .34 % .41 % .44 % .42 % Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets .41 .50 .46 .48 .46 Summary of Changes in Nonperforming Loans (in millions) 4Q06 3Q06 2Q06 1Q06 4Q05 Balance at beginning of period $223 $279 $295 $277 $360 Loans placed on nonaccrual status 115 134 98 100 142 Charge-offs (74) (70) (59) (65) (187) Loans sold (5) (22) (6) (2) (2) Payments (23) (43) (45) (15) (27) Transfer to held-for-sale portfolio (b) -- (55) -- -- -- Transfers to OREO (12) -- (4) -- -- Loans returned to accrual status (9) -- -- -- (9) Balance at end of period $215 $223 $279 $295 $277 (a) Included in "accrued expenses and other liabilities" on the consolidated balance sheet. (b) On August 1, 2006, Key transferred approximately $55 million of home equity loans from nonperforming loans to nonperforming loans held for sale in connection with an expected sale of the Champion Mortgage finance business. Line of Business Results (dollars in millions) Community Banking 4Q06 3Q06 2Q06 1Q06 4Q05 Summary of operations Total revenue (TE) $664 $671 $663 $643 $666 Provision for loan losses 23 22 21 29 30 Noninterest expense 480 470 475 439 484 Net income 101 112 104 109 95 Average loans and leases 26,632 26,737 26,804 26,739 27,267 Average deposits 47,376 46,987 46,683 45,835 45,730 Net loan charge- offs 25 22 24 28 31 Return on average allocated equity 17.38 % 19.20 % 18.11 % 19.14 % 16.18 % Average full-time equivalent employees 8,966 9,080 8,970 8,829 8,701 Supplementary information (lines of business) Regional Banking Total revenue (TE) $565 $570 $564 $547 $558 Provision for loan losses 19 19 19 22 26 Noninterest expense 432 420 423 391 429 Net income 72 82 76 83 65 Average loans and leases 18,581 18,722 18,771 18,776 19,010 Average deposits 43,683 43,405 43,091 42,222 41,929 Net loan charge- offs 19 19 21 22 26 Return on average allocated equity 17.95 % 20.40 % 19.31 % 21.20 % 16.11 % Average full-time equivalent employees 8,645 8,761 8,642 8,519 8,387 Commercial Banking Total revenue (TE) $99 $101 $99 $96 $108 Provision for loan losses 4 3 2 7 4 Noninterest expense 48 50 52 48 55 Net income 29 30 28 26 30 Average loans and leases 8,051 8,015 8,033 7,963 8,257 Average deposits 3,693 3,582 3,592 3,613 3,801 Net loan charge- offs 6 3 3 6 5 Return on average allocated equity 16.11 % 16.55 % 15.49 % 14.62 % 16.35 % Average full-time equivalent employees 321 319 328 310 314 Percent change 4Q06 vs. 3Q06 4Q05 Summary of operations Total revenue (TE) (1.0)% (.3)% Provision for loan losses 4.5 (23.3) Noninterest expense 2.1 (.8) Net income (9.8) 6.3 Average loans and leases (.4) (2.3) Average deposits .8 3.6 Net loan charge-offs 13.6 (19.4) Return on average allocated equity N/A N/A Average full-time equivalent employees (1.3) 3.0 Supplementary information (lines of business) Regional Banking Total revenue (TE) (.9)% 1.3 % Provision for loan losses --- (26.9) Noninterest expense 2.9 .7 Net income (12.2) 10.8 Average loans and leases (.8) (2.3) Average deposits .6 4.2 Net loan charge-offs -- (26.9) Return on average allocated equity N/A N/A Average full-time equivalent employees (1.3) 3.1 Commercial Banking Total revenue (TE) (2.0)% (8.3)% Provision for loan losses 33.3 -- Noninterest expense (4.0) (12.7) Net income (3.3) (3.3) Average loans and leases .4 (2.5) Average deposits 3.1 (2.8) Net loan charge-offs 100.0 20.0 Return on average allocated equity N/A N/A Average full-time equivalent employees .6 2.2 Line of Business Results (continued) (dollars in millions) National Banking 4Q06 3Q06 2Q06 1Q06 4Q05 Summary of operations Total revenue (TE) $684 $605 $604 $591 $604 Provision for loan losses 30 13 2 10 5 Noninterest expense 343 321 328 316 336 Income from continuing operations 194 169 172 166 164 Net income 29 176 177 176 176 Average loans and leases (a) 38,534 37,929 37,755 37,072 35,705 Average loans held for sale (a) 4,537 4,568 3,835 3,689 3,585 Average deposits (a) 11,847 11,055 10,624 9,947 8,562 Net loan charge- offs (a) 29 21 10 11 133 Return on average allocated equity (a) 19.99 % 17.93 % 18.74 % 18.33 % 18.19 % Return on average allocated equity 2.81 17.52 18.09 18.18 18.13 Average full-time equivalent employees 4,558 4,573 4,466 4,455 4,402 Supplementary information (lines of business) Real Estate Capital Total revenue (TE) $188 $169 $174 $155 $163 Provision for loan losses 18 7 -- 2 -- Noninterest expense 69 69 70 64 69 Net income 63 57 65 56 59 Average loans and leases 12,931 12,854 12,719 12,467 12,038 Average loans held for sale 1,125 1,022 692 577 605 Average deposits 4,096 3,598 3,467 3,214 2,467 Net loan charge- offs 8 -- 2 2 -- Return on average allocated equity 21.45 % 20.05 % 23.32 % 20.63 % 22.27 % Average full-time equivalent employees 957 970 980 981 873 Equipment Finance Total revenue (TE) $146 $137 $136 $124 $128 Provision for loan losses 7 11 2 3 5 Noninterest expense 79 83 79 75 80 Net income 37 27 34 29 27 Average loans and leases 10,222 10,100 9,871 9,569 9,458 Average loans held for sale 33 6 34 8 -- Average deposits 15 19 14 15 15 Net loan charge- offs 14 11 3 3 132 Return on average allocated equity 16.97 % 12.43 % 16.29 % 14.19 % 13.31 % Average full-time equivalent employees 938 927 915 935 971 Institutional and Capital Markets Total revenue (TE) $219 $187 $187 $204 $188 Provision for loan losses (2) -- (4) (5) (4) Noninterest expense 129 110 115 115 112 Net income 58 49 48 59 50 Average loans and leases 7,510 7,377 7,589 7,824 7,358 Average loans held for sale 387 454 139 112 73 Average deposits 7,078 6,703 6,441 6,029 5,434 Net loan charge- offs (recoveries) 1 -- (2) (4) (3) Return on average allocated equity 20.04 % 17.74 % 18.03 % 21.89 % 18.45 % Average full-time equivalent employees 1,297 1,305 1,228 1,234 1,223 Consumer Finance Total revenue (TE) $131 $112 $107 $108 $125 Provision for loan losses 7 (5) 4 10 4 Noninterest expense 66 59 64 62 75 Income from continuing operations 36 36 25 22 28 Net income (loss) (129) 43 30 32 40 Average loans and leases (a) 7,871 7,598 7,576 7,212 6,851 Average loans held for sale (a) 2,992 3,086 2,970 2,992 2,907 Average deposits (a) 658 735 702 689 646 Net loan charge- offs (a) 6 10 7 10 4 Return on average allocated equity (a) 21.22 % 21.84 % 15.26 % 13.71 % 17.20 % Return on average allocated equity (56.06) 18.98 13.36 14.37 17.25 Average full-time equivalent employees 1,366 1,371 1,343 1,305 1,335 Percent change 4Q06 vs. 3Q06 4Q05 Summary of operations Total revenue (TE) 13.1 % 13.2 % Provision for loan losses 130.8 500.0 Noninterest expense 6.9 2.1 Income from continuing operations 14.8 18.3 Net income (83.5) (83.5) Average loans and leases (a) 1.6 7.9 Average loans held for sale (a) (.7) 26.6 Average deposits (a) 7.2 38.4 Net loan charge-offs (a) 38.1 (78.2) Return on average allocated equity (a) N/A N/A Return on average allocated equity N/A N/A Average full-time equivalent employees (.3) 3.5 Supplementary information (lines of business) Real Estate Capital Total revenue (TE) 11.2 % 15.3 % Provision for loan losses 157.1 N/M Noninterest expense -- -- Net income 10.5 6.8 Average loans and leases .6 7.4 Average loans held for sale 10.1 86.0 Average deposits 13.8 66.0 Net loan charge-offs N/M N/M Return on average allocated equity N/A N/A Average full-time equivalent employees (1.3) 9.6 Equipment Finance Total revenue (TE) 6.6 % 14.1 % Provision for loan losses (36.4) 40.0 Noninterest expense (4.8) (1.3) Net income 37.0 37.0 Average loans and leases 1.2 8.1 Average loans held for sale 450.0 N/M Average deposits (21.1) -- Net loan charge-offs 27.3 (89.4) Return on average allocated equity N/A N/A Average full-time equivalent employees 1.2 (3.4) Institutional and Capital Markets Total revenue (TE) 17.1 % 16.5 % Provision for loan losses N/M 50.0 Noninterest expense 17.3 15.2 Net income 18.4 16.0 Average loans and leases 1.8 2.1 Average loans held for sale (14.8) 430.1 Average deposits 5.6 30.3 Net loan charge-offs (recoveries) N/M N/M Return on average allocated equity N/A N/A Average full-time equivalent employees (.6) 6.1 Consumer Finance Total revenue (TE) 17.0 % 4.8 % Provision for loan losses N/M 75.0 Noninterest expense 11.9 (12.0) Income from continuing operations -- 28.6 Net income (loss) N/M N/M Average loans and leases (a) 3.6 14.9 Average loans held for sale (a) (3.0) 2.9 Average deposits (a) (10.5) 1.9 Net loan charge-offs (a) (40.0) 50.0 Return on average allocated equity (a) N/A N/A Return on average allocated equity N/A N/A Average full-time equivalent employees (.4) 2.3 (a) From continuing operations. TE = Taxable Equivalent N/A = Not Applicable N/M = Not Meaningful DATASOURCE: KeyCorp Web site: http://www.key.com/

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