Keycorp (TG:KEY)
Historical Stock Chart
From Jun 2019 to Jun 2024
Financial Highlights
(dollars in millions, except per share amounts)
Three months ended
12-31-08 9-30-08 12-31-07
Summary of operations
Net interest income (TE) $646 (a) $705 (a) $750
Noninterest income 399 388 488
Total revenue (TE) 1,045 1,093 1,238
Provision for loan losses 594 407 363
Noninterest expense 1,303 762 896
(Loss) income from continuing
operations (524) (36) 22
Income from discontinued operations,
net of taxes (b) --- --- 3
Net (loss) income (524)(a) (36)(a) 25
Net (loss) income applicable to
common shares (554) (48) 25
Per common share
(Loss) income from continuing
operations $(1.13) $(.10) $.06
(Loss) income from continuing
operations - assuming dilution (1.13) (.10) .06
Income from discontinued operations (b) --- --- .01
Income from discontinued operations -
assuming dilution (b) --- --- .01
Net (loss) income (1.13) (.10) .06
Net (loss) income - assuming dilution (1.13)(a) (.10)(a) .06
Cash dividends paid .0625 .1875 .365
Book value at period end 14.97 16.16 19.92
Tangible book value at period end 12.41 12.66 16.39
Market price at period end 8.52 11.94 23.45
Performance ratios - from continuing
operations
Return on average total assets (1.93)% (.14)% .09 %
Return on average common equity (27.65) (2.36) 1.11
Return on average total equity (21.08) (1.64) 1.11
Net interest margin (TE) 2.76 3.13 3.48
Performance ratios - from consolidated
operations
Return on average total assets (1.93)%(a) (.14)%(a) .10 %
Return on average common equity (27.65)(a) (2.36)(a) 1.26
Return on average total equity (21.08)(a) (1.64)(a) 1.26
Net interest margin (TE) 2.76 (a) 3.13 (a) 3.48
Capital ratios at period end
Equity to assets 10.03 % 8.54 % 7.89 %
Tangible equity to tangible assets 8.92 6.95 6.58
Tangible common equity to tangible
assets 5.95 6.29 6.58
Tier 1 risk-based capital (c) 10.81 8.55 7.44
Total risk-based capital (c) 14.67 12.40 11.38
Leverage (c) 11.03 9.28 8.39
Asset quality
Net loan charge-offs $342 $273 $119
Net loan charge-offs to average loans
from continuing operations 1.77 % 1.43 % .67 %
Allowance for loan losses $1,803 $1,554 $1,200
Allowance for loan losses to period-
end loans 2.36 % 2.03 % 1.69 %
Allowance for loan losses to
nonperforming loans 147.18 160.70 174.67
Nonperforming loans at period end $1,225 $967 $687
Nonperforming assets at period end 1,464 1,239 764
Nonperforming loans to period-end
portfolio loans 1.60 % 1.26 % .97 %
Nonperforming assets to period-end
portfolio loans plus
OREO and other nonperforming assets 1.91 1.61 1.08
Trust and brokerage assets
Assets under management $64,717 $76,676 $85,442
Nonmanaged and brokerage assets 22,728 27,187 33,918
Other data
Average full-time equivalent
employees 17,697 18,098 18,500
Branches 986 986 955
Taxable-equivalent adjustment $7 $6 $40
Financial Highlights (continued)
(dollars in millions, except per share amounts)
Twelve months ended
12-31-08 12-31-07
Summary of operations
Net interest income (TE) $1,955 (a) $2,868
Noninterest income 1,870 2,229
Total revenue (TE) 3,825 5,097
Provision for loan losses 1,835 529
Noninterest expense 3,578 3,248
(Loss) income from continuing
operations (1,468) 941
Loss from discontinued operations,
net of taxes (b) --- (22)
Net (loss) income (1,468)(a) 919
Net (loss) income applicable to
common shares (1,510) 919
Per common share
(Loss) income from continuing
operations $(3.36) $2.40
(Loss) income from continuing
operations - assuming dilution (3.36) 2.38
Loss from discontinued
operations (b) --- (.06)
Loss from discontinued operations -
assuming dilution (b) --- (.05)
Net (loss) income (3.36) 2.35
Net (loss) income - assuming
dilution (3.36)(a) 2.32
Cash dividends paid 1.00 1.46
Performance ratios - from continuing
operations
Return on average total assets (1.41)% .99 %
Return on average common equity (18.32) 12.19
Return on average total equity (16.45) 12.19
Net interest margin (TE) 2.16 3.46
Performance ratios - from consolidated
operations
Return on average total assets (1.41)% (a) .97 %
Return on average common equity (18.32)(a) 11.90
Return on average total equity (16.45)(a) 11.90
Net interest margin (TE) 2.16 (a) 3.46
Asset quality
Net loan charge-offs $1,260 $275
Net loan charge-offs to average
loans from continuing operations 1.67 % .41 %
Other data
Average full-time equivalent
employees 18,095 18,934
Taxable-equivalent adjustment $(454) $99
(a) The following table entitled "GAAP to Non-GAAP Reconciliations"
presents certain earnings data and performance ratios, excluding
(credits) charges related to the tax treatment of certain leveraged
lease financing transactions disallowed by the Internal Revenue
Service, and the charge resulting from Key's annual goodwill
impairment testing completed during the fourth quarter of 2008. The
table reconciles certain GAAP performance measures to the
corresponding non-GAAP measures and provides a basis for period-to-
period comparisons.
(b) Key sold the subprime mortgage loan portfolio held by the Champion
Mortgage finance business in November 2006, and completed the sale of
Champion's origination platform in February 2007. As a result of
these actions, Key has accounted for this business as a discontinued
operation.
(c) 12-31-08 ratio is estimated.
TE = Taxable Equivalent
GAAP to Non-GAAP Reconciliations
(dollars in millions, except per share amounts)
During the fourth quarter of 2008, Key recorded an after-tax credit of
$120 million, or $.24 per common share, in connection with its opt-in
to the IRS global tax settlement. As a result of an adverse federal
court decision on Key's tax treatment of a Service Contract Lease
transaction entered into by AWG Leasing Trust, in which Key is a
partner, Key recorded after-tax charges of $30 million, or $.06 per
common share, during the third quarter of 2008 and $1.011 billion, or
$2.43 per common share, during the second quarter of 2008. During the
first quarter of 2008, Key increased its tax reserves for certain lease
in, lease out transactions and recalculated its lease income in
accordance with prescribed accounting standards, resulting in after-tax
charges of $38 million, or $.10 per common share.
Additionally, during the fourth quarter of 2008, Key recorded an after-
tax charge of $420 million, or $.85 per common share, as a result of
its annual goodwill impairment testing. During the third quarter of
2008, Key recorded an after-tax charge of $4 million, or $.01 per
common share, as a result of goodwill impairment related to
management's decision to limit new education loans.
The table below presents certain earnings data and performance ratios,
excluding these (credits) charges (non-GAAP), reconciles the GAAP
performance measures to the corresponding non-GAAP measures and
provides a basis for period-to-period comparisons. Non-GAAP financial
measures have inherent limitations, are not required to be uniformly
applied and are not audited. Non-GAAP financial measures should not be
considered in isolation, or as a substitute for analyses of results as
reported under GAAP.
Twelve
months
Three months ended ended
12-31-08 9-30-08 6-30-08 3-31-08 12-31-08
Net income
Net (loss) income (GAAP) $(524) $(36) $(1,126) $218 $(1,468)
(Credits) charges related
to leveraged lease tax
litigation, after tax (120) 30 1,011 38 959
Charges related to
goodwill impairment,
after tax 420 4 --- --- 424
Net (loss) income,
excluding (credits)
charges related to leveraged
lease tax litigation and
goodwill impairment
(non-GAAP) $(224) $(2) $(115) $256 $(85)
Preferred dividends $30 $12 --- --- $42
Net (loss) income applicable
to common shares (GAAP) $(554) $(48) $(1,126) $218 $(1,510)
Net (loss) income
applicable to common shares,
excluding (credits) charges
related to leveraged lease
tax litigation and goodwill
impairment (non-GAAP) (254) (14) (115) 256 (127)
Per common share
Net (loss) income -
assuming dilution (GAAP) $(1.13) $(.10) $(2.70) $.54 $(3.36)
Net (loss) income,
excluding (credits)
charges related to
leveraged lease tax
litigation and goodwill
impairment - assuming
dilution (non-GAAP) (.52) (.03) (.28) .64 (.28)
Performance ratios
Return on average total
assets (a)
Average total assets $107,735 $103,156 $103,290 $103,356 $104,390
Return on average total
assets (GAAP) (1.93)% (.14)% (4.38)% .85 % (1.41)%
Return on average total
assets, excluding
(credits) charges related
to leveraged lease tax
litigation and goodwill
impairment (non-GAAP) (.83) (.01) (.45) 1.00 (.08)
Return on average common
equity (a)
Average common equity $7,971 $8,077 $8,489 $8,445 $8,244
Return on average common
equity (GAAP) (27.65)% (2.36)% (53.35)% 10.38 % (18.32)%
Return on average common
equity, excluding
(credits) charges related
to leveraged lease tax
litigation and goodwill
impairment (non-GAAP) (12.68) (.69) (5.45) 12.19 (1.54)
Return on average total
equity (a)
Average total equity $9,888 $8,734 $8,617 $8,445 $8,923
Return on average total
equity (GAAP) (21.08)% (1.64)% (52.56)% 10.38 % (16.45)%
Return on average total
equity, excluding
(credits) charges related
to leveraged lease tax
litigation and goodwill
impairment (non-GAAP) (9.01) (.09) (5.37) 12.19 (.95)
Net interest income and margin
Net interest income
Net interest income (GAAP) $639 $699 $358 $713 $2,409
Charges related to
leveraged lease tax
litigation, pre-tax 18 --- 359 3 380
Net interest income,
excluding charges related
to leveraged lease tax
litigation (non-GAAP) $657 $699 $717 $716 $2,789
Net interest income/margin
(TE)
Net interest income (loss)
(TE) (as reported) $646 $705 $(100) $704 $1,955
Charges related to
leveraged lease tax
litigation, pre-tax (TE) 18 --- 838 34 890
Net interest income,
excluding charges related
to leveraged lease tax
litigation (TE)
(adjusted basis) $664 $705 $738 $738 $2,845
Net interest margin (TE)
(as reported) (a) 2.76 % 3.13 % (.44)% 3.14 % 2.16 %
Impact of charges related
to leveraged lease tax
litigation, pre-tax
(TE) (a) .08 --- 3.76 .15 .98
Net interest margin,
excluding charges related
to leveraged lease tax
litigation (TE)
(adjusted basis) (a) 2.84 % 3.13 % 3.32 % 3.29 % 3.14 %
(a) Income statement amount has been annualized in calculation of
percentage.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting
principles
Consolidated Balance Sheets
(dollars in millions)
12-31-08 9-30-08 12-31-07
Assets
Loans $76,504 $76,705 $70,823
Loans held for sale 1,027 1,475 4,736
Securities available for sale 8,437 8,391 7,860
Held-to-maturity securities 25 28 28
Trading account assets 1,280 1,449 1,056
Short-term investments 5,221 653 516
Other investments 1,526 1,556 1,538
Total earning assets 94,020 90,257 86,557
Allowance for loan losses (1,803) (1,554) (1,200)
Cash and due from banks 1,257 1,937 1,814
Premises and equipment 840 801 681
Operating lease assets 990 1,030 1,128
Goodwill 1,138 1,595 1,252
Other intangible assets 128 135 123
Corporate-owned life insurance 2,970 2,940 2,872
Derivative assets 1,896 951 879
Accrued income and other assets 3,095 3,198 4,122
Total assets $104,531 $101,290 $98,228
Liabilities
Deposits in domestic offices:
NOW and money market deposit
accounts $24,191 $25,789 $27,635
Savings deposits 1,712 1,731 1,513
Certificates of deposit ($100,000
or more) 11,991 10,316 6,982
Other time deposits 14,763 13,929 11,615
Total interest-bearing deposits 52,657 51,765 47,745
Noninterest-bearing deposits 11,485 11,122 11,028
Deposits in foreign office -
interest-bearing 1,118 1,791 4,326
Total deposits 65,260 64,678 63,099
Federal funds purchased and securities
sold under repurchase agreements 1,557 1,799 3,927
Bank notes and other short-term
borrowings 8,477 5,352 5,861
Derivative liabilities 1,038 589 252
Accrued expense and other liabilities 2,724 4,624 5,386
Long-term debt 14,995 15,597 11,957
Total liabilities 94,051 92,639 90,482
Shareholders' equity
Preferred stock, Series A 658 658 ---
Preferred stock, Series B 2,414 --- ---
Common shares 584 584 492
Common stock warrants 87 --- ---
Capital surplus 2,553 2,552 1,623
Retained earnings 6,727 7,320 8,522
Treasury stock, at cost (2,608) (2,616) (3,021)
Accumulated other comprehensive income 65 153 130
Total shareholders' equity 10,480 8,651 7,746
Total liabilities and shareholders'
equity $104,531 $101,290 $98,228
Common shares outstanding (000) 495,002 494,765 388,793
Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months ended Twelve months ended
12-31-08 9-30-08 12-31-07 12-31-08 12-31-07
Interest income
Loans $996 $1,066 $1,205 $3,902 $4,751
Loans held for sale 18 21 89 146 337
Securities available for
sale 110 110 115 440 427
Held-to-maturity securities 1 1 1 3 2
Trading account assets 17 16 12 56 38
Short-term investments 8 6 13 31 37
Other investments 13 12 12 51 52
Total interest income 1,163 1,232 1,447 4,629 5,644
Interest expense
Deposits 346 347 483 1,468 1,845
Federal funds purchased and
securities sold under
repurchase agreements 4 10 45 57 208
Bank notes and other short-
term borrowings 31 34 45 131 104
Long-term debt 143 142 164 564 718
Total interest expense 524 533 737 2,220 2,875
Net interest income 639 699 710 2,409 2,769
Provision for loan losses 594 407 363 1,835 529
Net interest income after
provision for loan losses 45 292 347 574 2,240
Noninterest income
Trust and investment services
income 138 133 131 538 490
Service charges on deposit
accounts 90 94 90 365 337
Operating lease income 64 69 72 270 272
Letter of credit and loan
fees 42 53 58 183 192
Corporate-owned life
insurance income 33 28 37 117 121
Electronic banking fees 25 27 25 103 99
Insurance income 15 15 10 65 55
Investment banking and
capital markets income
(loss) 6 (31) 12 63 117
Net securities (losses)
gains (5) 1 6 (2) (35)
Net (losses) gains from
principal investing (33) (24) 6 (62) 134
Net gains (losses) from
loan securitizations and
sales 3 (30) (6) (95) (17)
Gain from redemption of
Visa Inc. shares --- --- --- 165 ---
Gain from sale of McDonald
Investments branch network --- --- --- --- 171
Other income 21 53 47 160 293
Total noninterest income 399 388 488 1,870 2,229
Noninterest expense
Personnel 411 381 399 1,605 1,621
Net occupancy 68 65 64 261 246
Operating lease expense 55 56 59 224 224
Computer processing 51 46 52 187 201
Professional fees 51 35 38 142 117
Equipment 22 23 25 92 96
Marketing 25 27 16 87 76
Goodwill impairment 465 4 5 469 5
Other expense 155 125 238 511 662
Total noninterest expense 1,303 762 896 3,578 3,248
(Loss) income from
continuing operations
before income taxes (859) (82) (61) (1,134) 1,221
Income taxes (335) (46) (83) 334 280
(Loss) income from
continuing operations (524) (36) 22 (1,468) 941
Income (loss) from
discontinued operations,
net of taxes --- --- 3 --- (22)
Net (loss) income $(524) $(36) $25 $(1,468) $919
Net (loss) income applicable
to common shares $(554) $(48) $25 $(1,510) $919
Per common share:
(Loss) income from
continuing operations $(1.13) $(.10) $.06 $(3.36) $2.40
Net (loss) income (1.13) (.10) .06 (3.36) 2.35
Per common share - assuming
dilution:
(Loss) income from
continuing operations $(1.13) $(.10) $.06 $(3.36) $2.38
Net (loss) income (1.13) (.10) .06 (3.36) 2.32
Cash dividends declared per
common share $.0625 $.1875 $.74 $1.00 $1.835
Weighted-average common
shares outstanding (000) 492,311 491,179 388,940 450,039 392,013
Weighted-average common
shares and potential
common shares outstanding
(000) 492,311 491,179 389,911 450,039 395,823
Consolidated Average Balance Sheets, Net Interest Income and
Yields/Rates
From Continuing Operations
(dollars in millions)
Fourth Quarter 2008
Average
Balance Interest Yield/Rate
Assets
Loans: (a), (b)
Commercial, financial and
agricultural $27,662 $346 4.98 %
Real estate - commercial mortgage 10,707 151 5.63
Real estate - construction 7,686 100 5.16
Commercial lease financing 9,186 78 3.38(c)
Total commercial loans 55,241 675 4.87
Real estate - residential 1,903 29 6.00
Home equity:
Community Banking 10,037 129 5.13
National Banking 1,088 21 7.62
Total home equity loans 11,125 150 5.37
Consumer other - Community
Banking 1,260 30 9.57
Consumer other - National
Banking:
Marine 3,467 55 6.32
Education 3,661 56 6.19
Other 288 6 8.22
Total consumer other -
National Banking 7,416 117 6.33
Total consumer loans 21,704 326 6.00
Total loans 76,945 1,001 5.19
Loans held for sale 1,495 18 4.84
Securities available for sale
(a), (d) 8,269 111 5.39
Held-to-maturity securities (a) 27 2 10.74
Trading account assets 1,416 17 4.81
Short-term investments 3,715 8 .88
Other investments (d) 1,557 13 3.06
Total earning assets 93,424 1,170 4.98
Allowance for loan losses (1,676)
Accrued income and other assets 15,987
Total assets $107,735
Liabilities
NOW and money market deposit
accounts $24,919 78 1.24
Savings deposits 1,722 1 .16
Certificates of deposit ($100,000
or more) (e) 11,270 118 4.20
Other time deposits 14,560 146 3.98
Deposits in foreign office 1,300 3 .90
Total interest-bearing
deposits 53,771 346 2.56
Federal funds purchased and
securities sold under repurchase
agreements 1,727 4 .86
Bank notes and other short-term
borrowings 9,205 31 1.36
Long-term debt (e), (f) 14,557 143 4.08
Total interest-bearing
liabilities 79,260 524 2.65
Noninterest-bearing deposits 10,860
Accrued expense and other
liabilities 7,727
Total liabilities 97,847
Shareholders' equity 9,888
Total liabilities and
shareholders' equity $107,735
Interest rate spread (TE) 2.33 %
Net interest income (TE) and net
interest margin (TE) 646 (c) 2.76%(c)
TE adjustment (a) 7
Net interest income, GAAP basis $639
Third Quarter 2008
Average
Balance Interest Yield/Rate
Assets
Loans: (a), (b)
Commercial, financial and
agricultural $26,345 $356 5.38 %
Real estate - commercial mortgage 10,718 158 5.87
Real estate - construction 7,806 109 5.53
Commercial lease financing 9,585 108 4.52
Total commercial loans 54,454 731 5.35
Real estate - residential 1,899 28 6.04
Home equity:
Community Banking 9,887 141 5.64
National Banking 1,138 22 7.65
Total home equity loans 11,025 163 5.85
Consumer other - Community Banking 1,264 33 10.37
Consumer other - National Banking:
Marine 3,586 57 6.33
Education 3,635 54 5.90
Other 308 6 8.22
Total consumer other -
National Banking 7,529 117 6.20
Total consumer loans 21,717 341 6.25
Total loans 76,171 1,072 5.60
Loans held for sale 1,723 21 4.76
Securities available for sale
(a), (d) 8,266 110 5.38
Held-to-maturity securities (a) 27 1 13.81
Trading account assets 1,579 16 4.02
Short-term investments 794 6 3.44
Other investments (d) 1,563 12 2.87
Total earning assets 90,123 1,238 5.47
Allowance for loan losses (1,498)
Accrued income and other assets 14,531
Total assets $103,156
Liabilities
NOW and money market deposit
accounts $26,657 108 1.61
Savings deposits 1,783 1 .21
Certificates of deposit ($100,000
or more) (e) 9,506 97 4.05
Other time deposits 13,118 129 3.92
Deposits in foreign office 2,762 12 1.77
Total interest-bearing
deposits 53,826 347 2.57
Federal funds purchased and
securities sold under repurchase
agreements 2,546 10 1.58
Bank notes and other short-term
borrowings 4,843 34 2.72
Long-term debt (e), (f) 15,123 142 3.91
Total interest-bearing
liabilities 76,338 533 2.80
Noninterest-bearing deposits 10,756
Accrued expense and other
liabilities 7,328
Total liabilities 94,422
Shareholders' equity 8,734
Total liabilities and
shareholders' equity $103,156
Interest rate spread (TE) 2.67 %
Net interest income (TE) and net
interest margin (TE) 705 3.13 %
TE adjustment (a) 6
Net interest income, GAAP basis $699
Fourth Quarter 2007
Average
Balance Interest Yield/Rate
Assets
Loans: (a), (b)
Commercial, financial and
agricultural $23,825 $419 6.98 %
Real estate - commercial mortgage 9,351 175 7.42
Real estate - construction 8,192 153 7.42
Commercial lease financing 10,252 171 6.65
Total commercial loans 51,620 918 7.06
Real estate - residential 1,596 27 6.72
Home equity:
Community Banking 9,658 168 6.92
National Banking 1,259 24 7.77
Total home equity loans 10,917 192 7.02
Consumer other - Community
Banking 1,308 35 10.73
Consumer other - National
Banking:
Marine 3,608 58 6.34
Education 329 8 9.47
Other 339 7 8.66
Total consumer other -
National Banking 4,276 73 6.76
Total consumer loans 18,097 327 7.20
Total loans 69,717 1,245 7.10
Loans held for sale 4,748 89 7.53
Securities available for sale
(a), (d) 7,858 115 5.89
Held-to-maturity securities (a) 30 1 6.24
Trading account assets 1,042 12 4.40
Short-term investments 1,226 13 3.94
Other investments (d) 1,589 12 3.02
Total earning assets 86,210 1,487 6.86
Allowance for loan losses (966)
Accrued income and other assets 13,547
Total assets $98,791
Liabilities
NOW and money market deposit
accounts $25,687 197 3.05
Savings deposits 1,523 1 .19
Certificates of deposit ($100,000
or more) (e) 6,887 86 4.98
Other time deposits 11,455 135 4.68
Deposits in foreign office 5,720 64 4.42
Total interest-bearing
deposits 51,272 483 3.74
Federal funds purchased and
securities sold under repurchase
agreements 4,194 45 4.23
Bank notes and other short-term
borrowings 4,233 45 4.15
Long-term debt (e), (f) 11,851 164 5.72
Total interest-bearing
liabilities 71,550 737 4.11
Noninterest-bearing deposits 12,948
Accrued expense and other
liabilities 6,405
Total liabilities 90,903
Shareholders' equity 7,888
Total liabilities and
shareholders' equity $98,791
Interest rate spread (TE) 2.75 %
Net interest income (TE) and net
interest margin (TE) 750 3.48 %
TE adjustment (a) 40
Net interest income, GAAP basis $710
Average balances have not been restated to reflect Key's January 1,
2008, adoption of Financial Accounting Standards Board ("FASB")
Interpretation No. 39, "Offsetting of Amounts Related to Certain
Contracts," and FASB Staff Position FIN 39-1, "Amendment of FASB
Interpretation 39."
(a) 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%.
(b) For purposes of these computations, nonaccrual loans are included in
average loan balances.
(c) During the fourth quarter of 2008, Key's taxable-equivalent net
interest income was reduced by $18 million as a result of an
agreement reached with the IRS on all material aspects related to the
IRS global tax settlement pertaining to certain leveraged lease
financing transactions. Excluding this reduction, the taxable-
equivalent yield on Key's commercial lease financing portfolio would
have been 4.17% for the fourth quarter of 2008, and Key's taxable-
equivalent net interest margin would have been 2.84%.
(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 necessary to support interest-earning assets held
by the discontinued Champion Mortgage finance business. The interest
expense related to these liabilities, which also is excluded from
continuing operations, was calculated using a matched funds transfer
pricing methodology.
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, 2008
Average
Balance Interest Yield/Rate
Assets
Loans: (a), (b)
Commercial, financial and
agricultural $26,372 $1,446 5.48 %
Real estate - commercial mortgage 10,576 640 6.05
Real estate - construction 8,109 461 5.68
Commercial lease financing 9,642 (425) (4.41)(c)
Total commercial loans 54,699 2,122 3.88
Real estate - residential 1,909 117 6.11
Home equity:
Community Banking 9,846 564 5.73
National Banking 1,171 90 7.67
Total home equity loans 11,017 654 5.93
Consumer other - Community
Banking 1,275 130 10.22
Consumer other - National
Banking:
Marine 3,586 226 6.30
Education 2,818 170 6.05
Other 315 26 8.25
Total consumer other -
National Banking 6,719 422 6.29
Total consumer loans 20,920 1,323 6.33
Total loans 75,619 3,445 4.56
Loans held for sale 2,385 146 6.11
Securities available for sale
(a), (d) 8,317 442 5.36
Held-to-maturity securities (a) 27 4 11.73
Trading account assets 1,279 56 4.38
Short-term investments 1,615 31 1.96
Other investments (d) 1,563 51 3.02
Total earning assets 90,805 4,175 4.59
Allowance for loan losses (1,438)
Accrued income and other assets 15,023
Total assets $104,390
Liabilities
NOW and money market deposit
accounts $26,429 427 1.62
Savings deposits 1,796 6 .32
Certificates of deposit ($100,000
or more) (e) 9,385 398 4.25
Other time deposits 13,300 556 4.18
Deposits in foreign office 3,501 81 2.31
Total interest-bearing
deposits 54,411 1,468 2.70
Federal funds purchased and
securities sold under repurchase
agreements 2,847 57 2.00
Bank notes and other short-term
borrowings 5,944 131 2.20
Long-term debt (e), (f) 14,387 564 4.12
Total interest-bearing
liabilities 77,589 2,220 2.89
Noninterest-bearing deposits 10,744
Accrued expense and other
liabilities 7,134
Total liabilities 95,467
Shareholders' equity 8,923
Total liabilities and
shareholders' equity $104,390
Interest rate spread (TE) 1.70 %
Net interest income (TE) and net
interest margin (TE) 1,955 (c) 2.16 %(c)
TE adjustment (a) (454)
Net interest income, GAAP basis $2,409
Twelve months ended December 31, 2007
Average
Balance Interest Yield/Rate
Assets
Loans: (a), (b)
Commercial, financial and
agricultural $22,415 $1,622 7.23 %
Real estate - commercial mortgage 8,802 675 7.67
Real estate - construction 8,237 653 7.93
Commercial lease financing 10,154 606 5.97
Total commercial loans 49,608 3,556 7.17
Real estate - residential 1,525 101 6.64
Home equity:
Community Banking 9,671 686 7.09
National Banking 1,144 89 7.84
Total home equity loans 10,815 775 7.17
Consumer other - Community
Banking 1,367 144 10.53
Consumer other - National
Banking:
Marine 3,390 214 6.30
Education 333 32 9.54
Other 319 28 8.93
Total consumer other -
National Banking 4,042 274 6.77
Total consumer loans 17,749 1,294 7.29
Total loans 67,357 4,850 7.20
Loans held for sale 4,461 337 7.57
Securities available for sale
(a), (d) 7,757 427 5.52
Held-to-maturity securities (a) 36 2 6.68
Trading account assets 917 38 4.10
Short-term investments 846 37 4.34
Other investments (d) 1,524 52 3.33
Total earning assets 82,898 5,743 6.84
Allowance for loan losses (948)
Accrued income and other assets 12,934
Total assets $94,884
Liabilities
NOW and money market deposit
accounts $24,070 762 3.17
Savings deposits 1,591 3 .19
Certificates of deposit ($100,000
or more) (e) 6,389 321 5.02
Other time deposits 11,767 550 4.68
Deposits in foreign office 4,287 209 4.87
Total interest-bearing
deposits 48,104 1,845 3.84
Federal funds purchased and
securities
sold under repurchase
agreements 4,330 208 4.79
Bank notes and other short-term
borrowings 2,423 104 4.28
Long-term debt (e), (f) 12,537 718 5.84
Total interest-bearing
liabilities 67,394 2,875 4.28
Noninterest-bearing deposits 13,635
Accrued expense and other
liabilities 6,133
Total liabilities 87,162
Shareholders' equity 7,722
Total liabilities and
shareholders' equity $94,884
Interest rate spread (TE) 2.56 %
Net interest income (TE) and net
interest margin (TE) 2,868 3.46 %
TE adjustment (a) 99
Net interest income, GAAP basis $2,769
Average balances have not been restated to reflect Key's January 1, 2008,
adoption of Financial Accounting Standards Board ("FASB") Interpretation
No. 39, "Offsetting of Amounts Related to Certain Contracts," and FASB
Staff Position FIN 39-1, "Amendment of FASB Interpretation 39."
(a) 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%.
(b) For purposes of these computations, nonaccrual loans are included in
average loan balances.
(c) During the fourth quarter of 2008, Key's taxable-equivalent net
interest income was reduced by $18 million as a result of an agreement
reached with the IRS on all material aspects related to the IRS global
tax settlement pertaining to certain leveraged lease financing
transactions. During the second quarter of 2008, Key's
taxable- equivalent net interest income was reduced by $838 million as
a result of an adverse federal court decision on Key's tax treatment
of a Service Contract Lease transaction. During the first quarter of
2008, Key's taxable-equivalent net interest income was reduced by $34
million as a result of an increase to Key's tax reserves for certain
lease in, lease out transactions and a recalculation of its lease
income in accordance with prescribed accounting standards. Excluding
these reductions, the taxable-equivalent yield on Key's commercial
lease financing portfolio would have been 4.82% for the twelve months
ended December 31, 2008, and Key's taxable-equivalent net interest
margin would have been 3.14%.
(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 necessary to support interest-earning assets held
by the discontinued Champion Mortgage finance business. The interest
expense related to these liabilities, which also is excluded from
continuing operations, was calculated using a matched funds transfer
pricing methodology.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting
principles
Noninterest Income
(in millions)
Three months ended Twelve months ended
12-31-08 9-30-08 12-31-07 12-31-08 12-31-07
Trust and investment services
income (a) $138 $133 $131 $538 $490
Service charges on deposit
accounts 90 94 90 365 337
Operating lease income 64 69 72 270 272
Letter of credit and loan fees 42 53 58 183 192
Corporate-owned life insurance
income 33 28 37 117 121
Electronic banking fees 25 27 25 103 99
Insurance income 15 15 10 65 55
Investment banking and capital
markets income (loss) (a) 6 (31) 12 63 117
Net securities (losses) gains (5) 1 6 (2) (35)
Net (losses) gains from
principal investing (33) (24) 6 (62) 134
Net gains (losses) from loan
securitizations and sales 3 (30) (6) (95) (17)
Gain from redemption of
Visa Inc. shares --- --- --- 165 ---
Gain from sale of McDonald
Investments branch network --- --- --- --- 171
Other income:
Loan securitization
servicing fees 5 4 5 18 21
Credit card fees 3 6 3 16 13
Gains related to
MasterCard Incorporated
shares --- --- --- --- 67
Litigation settlement -
automobile residual
value insurance --- --- --- --- 26
Miscellaneous income 13 43 39 126 166
Total other income 21 53 47 160 293
Total noninterest
income $399 $388 $488 $1,870 $2,229
(a) Additional detail provided in tables below.
Trust and Investment Services Income
(in millions)
Three months ended Twelve months ended
12-31-08 9-30-08 12-31-07 12-31-08 12-31-07
Brokerage commissions and
fee income $48 $37 $31 $159 $125
Personal asset management
and custody fees 39 38 43 158 165
Institutional asset management
and custody fees 51 58 57 221 200
Total trust and investment
services income $138 $133 $131 $538 $490
Investment Banking and Capital Markets Income
(in millions)
Three months ended Twelve months ended
12-31-08 9-30-08 12-31-07 12-31-08 12-31-07
Investment banking income $7 $20 $21 $85 $86
Losses from other investments (32) (7) (23) (44) (34)
Dealer trading and derivatives
income (loss) 11 (57) (1) (39) 17
Foreign exchange income 20 13 15 61 48
Total investment banking
and capital markets income
(loss) $6 $(31) $12 $63 $117
Noninterest Expense
(dollars in millions)
Three months ended Twelve months ended
12-31-08 9-30-08 12-31-07 12-31-08 12-31-07
Personnel (a) $411 $381 $399 $1,605 $1,621
Net occupancy 68 65 64 261 246
Operating lease expense 55 56 59 224 224
Computer processing 51 46 52 187 201
Professional fees 51 35 38 142 117
Equipment 22 23 25 92 96
Marketing 25 27 16 87 76
Noncash charge for goodwill
impairment 465 4 5 469 5
Other expense:
Postage and delivery 12 11 13 46 47
Franchise and business
taxes 7 7 7 30 32
Telecommunications 8 7 7 30 28
(Credit) provision for
losses on lending-
related commitments (5) 8 25 (26) 28
Liability to Visa Inc. --- --- 64 --- 64
Miscellaneous expense 133 92 122 431 463
Total other expense 155 125 238 511 662
Total noninterest
expense $1,303 $762 $896 $3,578 $3,248
Average full-time equivalent
employees 17,697 18,098 18,500(b) 18,095 18,934(b)
(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
12-31-08 9-30-08 12-31-07 12-31-08 12-31-07
Salaries $241 $245 $255 $960 $976
Incentive compensation 78 55 52 286 264
Employee benefits 58 59 65 258 287
Stock-based compensation 11 8 3 50 60
Severance 23 14 24 51 34
Total personnel expense $411 $381 $399 $1,605 $1,621
Loan Composition
(dollars in millions)
Percent change
12-31-08 vs.
12-31-08 9-30-08 12-31-07 9-30-08 12-31-07
Commercial, financial and
agricultural $27,260 $27,207 $24,797 .2 % 9.9 %
Commercial real estate:
Commercial mortgage 10,819 10,569 9,630 2.4 12.3
Construction 7,717 7,708 8,102 .1 (4.8)
Total commercial real
estate loans (a) 18,536 18,277 17,732 1.4 4.5
Commercial lease financing 9,039 9,437 10,176 (4.2) (11.2)
Total commercial loans 54,835 54,921 52,705 (.2) 4.0
Real estate - residential
mortgage 1,908 1,898 1,594 .5 19.7
Home equity:
Community Banking 10,124 9,970 9,655 1.5 4.9
National Banking 1,051 1,101 1,262 (4.5) (16.7)
Total home equity loans 11,175 11,071 10,917 .9 2.4
Consumer other - Community
Banking 1,233 1,274 1,298 (3.2) (5.0)
Consumer other - National
Banking:
Marine 3,401 3,529 3,637 (3.6) (6.5)
Education (b) 3,669 3,711 331 (1.1) N/M
Other 283 301 341 (6.0) (17.0)
Total consumer other -
National Banking 7,353 7,541 4,309 (2.5) 70.6
Total consumer loans 21,669 21,784 18,118 (.5) 19.6
Total loans $76,504 $76,705 $70,823 (.3)% 8.0 %
Loans Held for Sale Composition
(dollars in millions)
Percent change
12-31-08 vs.
12-31-08 9-30-08 12-31-07 9-30-08 12-31-07
Commercial, financial and
agricultural $102 $159 $250 (35.8)% (59.2)%
Real estate - commercial
mortgage 273 718 1,219 (62.0) (77.6)
Real estate - construction (a) 164 262 35 (37.4) 368.6
Commercial lease financing 7 52 1 (86.5) 600.0
Real estate - residential
mortgage 77 57 47 35.1 63.8
Home equity --- --- 1 --- (100.0)
Education (b) 401 223 3,176 79.8 (87.4)
Automobile 3 4 7 (25.0) (57.1)
Total loans held for sale $1,027 $1,475 $4,736 (30.4)% (78.3)%
(a) During the second quarter of 2008, Key transferred $384 million of
commercial real estate loans ($719 million of primarily construction
loans, net of $335 million in net charge-offs) from the loan portfolio
to held-for-sale status.
(b) On March 31, 2008, Key transferred $3.284 billion of education loans
from loans held for sale to the loan portfolio.
N/M = Not Meaningful
Summary of Loan Loss Experience
(dollars in millions)
Three months ended Twelve months ended
12-31-08 9-30-08 12-31-07 12-31-08 12-31-07
Average loans outstanding from
continuing operations $76,945 $76,171 $69,717 $75,619 $67,357
Allowance for loan losses at
beginning of period $1,554 $1,421 $955 $1,200 $944
Loans charged off:
Commercial, financial and
agricultural 132 75 48 332 128
Real estate -- commercial
mortgage 43 21 3 83 16
Real estate -- construction 49 80 44 494 54
Total commercial real
estate loans (a) 92 101 47 577 70
Commercial lease financing 26 24 18 83 51
Total commercial loans 250 200 113 992 249
Real estate -- residential
mortgage 7 2 3 15 6
Home equity:
Community Banking 15 10 6 43 21
National Banking 17 12 6 47 16
Total home equity loans 32 22 12 90 37
Consumer other - Community
Banking 13 11 8 44 31
Consumer other - National
Banking:
Marine 30 20 11 85 33
Education (b) 33 41 2 131 5
Other 4 4 3 14 9
Total consumer other -
National Banking 67 65 16 230 47
Total consumer loans 119 100 39 379 121
Total loans charged off 369 300 152 1,371 370
Recoveries:
Commercial, financial and
agricultural 13 13 13 54 37
Real estate -- commercial
mortgage --- 1 2 1 6
Real estate -- construction --- 1 --- 2 1
Total commercial real
estate loans --- 2 2 3 7
Commercial lease financing 5 5 12 20 22
Total commercial loans 18 20 27 77 66
Real estate -- residential
mortgage --- --- --- 1 1
Home equity:
Community Banking 1 1 --- 3 3
National Banking --- --- --- 1 1
Total home equity loans 1 1 --- 4 4
Consumer other - Community
Banking 2 1 2 6 8
Consumer other - National
Banking:
Marine 5 4 3 18 12
Education --- 1 --- 2 1
Other 1 --- 1 3 3
Total consumer other -
National Banking 6 5 4 23 16
Total consumer loans 9 7 6 34 29
Total recoveries 27 27 33 111 95
Net loan charge-offs (342) (273) (119) (1,260) (275)
Provision for loan losses from
continuing operations 594 407 363 1,835 529
Allowance related to loans
acquired, net --- --- --- 32 ---
Foreign currency translation
adjustment (3) (1) 1 (4) 2
Allowance for loan losses at end
of period $1,803 $1,554 $1,200 $1,803 $1,200
Net loan charge-offs to average
loans from continuing operations 1.77% 1.43% .67% 1.67% .41%
Allowance for loan losses to
period-end loans 2.36 2.03 1.69 2.36 1.69
Allowance for loan losses to
nonperforming loans 147.18 160.70 174.67 147.18 174.67
(a) During the second quarter of 2008, Key transferred $384 million of
commercial real estate loans ($719 million of primarily construction
loans, net of $335 million in net charge-offs) from the loan portfolio
to held-for-sale status.
(b) On March 31, 2008, Key transferred $3.284 billion of education loans
from loans held for sale to the loan portfolio.
Changes in Liability for Credit Losses on Lending-Related Commitments
(in millions)
Three months ended Twelve months ended
12-31-08 9-30-08 12-31-07 12-31-08 12-31-07
Balance at beginning of period $59 $51 $55 $80 $53
(Credit) provision for
losses on lending-related
commitments (5) 8 25 (26) 28
Charge-offs --- (1)
Balance at end of period (a) $54 $59 $80 $54 $80
(a) Included in "accrued expense and other liabilities" on the
consolidated balance sheet.
Summary of Nonperforming Assets and Past Due Loans
(dollars in millions)
12-31-08 9-30-08 6-30-08 3-31-08 12-31-07
Commercial, financial
and agricultural $415 $309 $259 $147 $84
Real estate - commercial
mortgage 128 119 107 113 41
Real estate - construction 436 334 256 610 415
Total commercial
real estate loans 564 453 363 (b) 723 456
Commercial lease financing 81 55 57 38 28
Total commercial
loans 1,060 817 679 908 568
Real estate - residential
mortgage 39 35 32 34 28
Home equity:
Community Banking 76 70 61 60 54
National Banking 15 16 14 14 12
Total home
equity loans 91 86 75 74 66
Consumer other -
Community Banking 3 3 2 2 2
Consumer other - National
Banking:
Marine 26 22 20 20 20
Education 4 3 4 15 2
Other 2 1 2 1 1
Total consumer
other - National
Banking 32 26 26 36 23
Total consumer
loans 165 150 135 146 119
Total nonperforming
loans 1,225 967 814 1,054 687
Nonperforming loans held
for sale 90 169 342 (b) 9 25
OREO 110 64 26 29 21
Allowance for OREO losses (3) (4) (2) (2) (2)
OREO, net of allowance 107 60 24 27 19
Other nonperforming
assets (a) 42 43 30 25 33
Total nonperforming
assets $1,464 $1,239 $1,210 $1,115 $764
Accruing loans past due
90 days or more $433 $328 $367 $283 $231
Accruing loans past due
30 through 89 days 1,314 937 852 1,169 843
Nonperforming loans to
period-end portfolio
loans 1.60 % 1.26 % 1.07 % 1.38 % .97 %
Nonperforming assets to
period-end portfolio
loans plus OREO and other
nonperforming assets 1.91 1.61 1.59 1.46 1.08
Summary of Changes in Nonperforming Loans
(in millions)
4Q08 3Q08 2Q08 1Q08 4Q07
Balance at beginning of period $967 $814 $1,054 $687 $498
Loans placed on nonaccrual
status 734 530 789 566 378
Charge-offs (369) (300) (547) (144) (147)
Loans sold (5) (1) (48) --- (13)
Payments (77) (43) (86) (32) (17)
Transfers to OREO (22) --- --- (10) (5)
Transfer to nonperforming
loans held for sale --- (30) (342)(b) (8) ---
Loans returned to accrual status (3) (3) (6) (5) (7)
Balance at end of period $1,225 $967 $814 $1,054 $687
(a) Primarily investments held by the Private Equity unit within Key's
Real Estate Capital and Corporate Banking Services line of business.
(b) During the second quarter of 2008, Key transferred $384 million of
commercial real estate loans ($719 million of primarily construction
loans, net of $335 million in net charge-offs) from the loan
portfolio to held-for-sale status.
Line of Business Results
(dollars in millions)
Community Banking
4Q08 3Q08 2Q08 1Q08 4Q07
Summary of operations
Total revenue (TE) $644 $653 $656 $629 $653
Provision for loan losses 102 56 44 18 36
Noninterest expense 489 445 448 428 438
Net income 33 95 103 114 112
Average loans and leases 29,157 28,872 28,477 28,093 27,234
Average deposits 51,055 50,384 49,950 49,777 47,261
Net loan charge-offs 66 70 38 30 31
Net loan charge-offs
to average loans .90% .96% .54% .43% .45%
Nonperforming assets
at period end $261 $225 $218 $204 $153
Return on average
allocated equity 4.19% 12.42% 13.49% 15.29% 17.52%
Average full-time
equivalent employees 8,796 8,854 8,785 8,714 8,454
Supplementary information
(lines of business)
Regional Banking
Total revenue (TE) $556 $552 $554 $529 $555
Provision for loan losses 80 39 25 9 26
Noninterest expense 437 398 400 385 385
Net income 24 72 81 84 90
Average loans and leases 20,015 19,795 19,621 19,562 18,776
Average deposits 47,427 46,655 46,253 46,192 43,718
Net loan charge-offs 52 41 33 29 26
Net loan charge-offs
to average loans 1.03% .82% .68% .60% .55%
Nonperforming assets
at period end $184 $168 $157 $142 $119
Return on average
allocated equity 4.34% 13.25% 14.77% 15.43% 20.39%
Average full-time
equivalent employees 8,458 8,512 8,439 8,365 8,101
Commercial Banking
Total revenue (TE) $88 $101 $102 $100 $98
Provision for loan losses 22 17 19 9 10
Noninterest expense 52 47 48 43 53
Net income 9 23 22 30 22
Average loans and leases 9,142 9,077 8,856 8,531 8,458
Average deposits 3,628 3,729 3,697 3,585 3,543
Net loan charge-offs 14 29 5 1 5
Net loan charge-offs
to average loans .61% 1.27% .23% .05% .23%
Nonperforming assets
at period end $77 $57 $61 $62 $34
Return on average
allocated equity 3.83% 10.39% 10.21% 14.90% 11.12%
Average full-time
equivalent employees 338 342 346 349 353
Community Banking
Percent change 4Q08 vs.
3Q08 4Q07
Summary of operations
Total revenue (TE) (1.4)% (1.4)%
Provision for loan losses 82.1 183.3
Noninterest expense 9.9 11.6
Net income (65.3) (70.5)
Average loans and leases 1.0 7.1
Average deposits 1.3 8.0
Net loan charge-offs (5.7) 112.9
Net loan charge-offs to average loans N/A N/A
Nonperforming assets at period end 16.0 70.6
Return on average allocated equity N/A N/A
Average full-time equivalent employees (.7) 4.0
Supplementary information
(lines of business)
Regional Banking
Total revenue (TE) .7 % .2 %
Provision for loan losses 105.1 207.7
Noninterest expense 9.8 13.5
Net income (66.7) (73.3)
Average loans and leases 1.1 6.6
Average deposits 1.7 8.5
Net loan charge-offs 26.8 100.0
Net loan charge-offs to average loans N/A N/A
Nonperforming assets at period end 9.5 54.6
Return on average allocated equity N/A N/A
Average full-time equivalent employees (.6) 4.4
Commercial Banking
Total revenue (TE) (12.9)% (10.2)%
Provision for loan losses 29.4 120.0
Noninterest expense 10.6 (1.9)
Net income (60.9) (59.1)
Average loans and leases .7 8.1
Average deposits (2.7) 2.4
Net loan charge-offs (51.7) 180.0
Net loan charge-offs to average loans N/A N/A
Nonperforming assets at period end 35.1 126.5
Return on average allocated equity N/A N/A
Average full-time equivalent employees (1.2) (4.2)
Line of Business Results (continued)
(dollars in millions)
National Banking
4Q08 3Q08 2Q08 1Q08 4Q07
Summary of operations
Total revenue (TE) $539 $487 $(127) $438 $610
Provision for
loan losses 489 350 609 169 327
Noninterest expense 830 342 337 308 388
Loss from continuing
operations (662) (130) (671) (24) (67)
Net loss (662) (130) (671) (24) (64)
Average loans and
leases (a) 47,474 47,075 47,877 44,163 42,040
Average loans
held for sale (a) 1,404 1,651 1,282 4,932 4,709
Average deposits (a) 12,305 12,439 12,287 11,877 12,622
Net loan charge-
offs (a) 276 203 486 91 88
Net loan charge-
offs to average
loans (a) 2.31 % 1.72 % 4.08 % .83 % .83 %
Nonperforming assets
at period end $1,190 $1,014 $992 $911 $611
Return on average
allocated equity
(a) (49.64)% (10.07)% (51.44)% (1.96)% (5.95)%
Return on average
allocated equity (49.64) (10.07) (51.44) (1.96) (5.68)
Average full-time
equivalent employees 3,316 3,552 3,604 3,759 4,010
Supplementary information
(lines of business)
Real Estate Capital and
Corporate Banking Services
Total revenue (TE) $161 $96 $235 $82 $160
Provision for
loan losses 153 99 366 45 270
Noninterest expense 93 89 67 60 117
Net (loss) (53) (58) (124) (14) (142)
Average loans and
leases 16,604 16,447 17,086 16,497 15,003
Average loans
held for sale 511 792 616 989 1,257
Average deposits 10,390 10,446 10,460 9,784 10,396
Net loan charge-offs 81 100 376 38 45
Net loan charge-offs
to average loans 1.94 % 2.42 % 8.85 % .93 % 1.19 %
Nonperforming assets
at period end $763 $714 $779 $732 $475
Return on average
allocated equity (9.96)% (11.40)% (23.15)% (3.01)% (36.68)%
Average full-time
equivalent employees 1,107 1,209 1,228 1,233 1,310
Equipment Finance
Total revenue (TE) $92 $111 $(696) $94 $183
Provision for
loan losses 33 64 36 24 23
Noninterest expense 349 90 89 96 96
Net (loss) income (276) (27) (513) (16) 40
Average loans and
leases 9,548 10,013 10,326 10,596 10,730
Average loans
held for sale 29 49 51 32 15
Average deposits 15 20 21 14 17
Net loan charge-offs 51 32 28 24 18
Net loan charge-offs
to average loans 2.12 % 1.27 % 1.09 % .91 % .67 %
Nonperforming assets
at period end $158 $115 $105 $69 $58
Return on average
allocated equity (124.21)% (12.00)% (226.24)% (6.97)% (17.40)%
Average full-time
equivalent employees 781 819 838 860 923
Institutional and Capital
Markets
Total revenue (TE) $200 $185 $230 $159 $169
Provision for
loan losses 52 16 36 16 15
Noninterest expense 329 107 128 103 116
Net (loss) income (193) 39 41 25 25
Average loans and
leases 9,352 8,363 7,898 7,633 7,218
Average loans
held for sale 545 649 494 555 394
Average deposits 1,442 1,479 1,384 1,460 1,560
Net loan charge-
offs (recoveries) 38 (1) 5 2 6
Net loan charge-offs
(recoveries) to
average loans 1.62 % (.05)% .25 % .11 % .33 %
Nonperforming assets
at period end $55 $58 $26 $12 $15
Return on average
allocated equity (57.82)% 12.11 % 13.11 % 8.28 % 8.51 %
Average full-time
equivalent employees 939 964 931 938 979
Consumer Finance
Total revenue (TE) $86 $95 $104 $103 $98
Provision for
loan losses 251 171 171 84 19
Noninterest expense 59 56 53 49 59
(Loss) income from
continuing operations (140) (84) (75) (19) 10
Net (loss) income (140) (84) (75) (19) 13
Average loans and
leases (a) 11,970 12,252 12,567 9,437 9,089
Average loans held
for sale (a) 319 161 121 3,356 3,043
Average deposits (a) 458 494 422 619 649
Net loan charge-
offs (a) 106 72 77 27 19
Net loan charge-offs
to average loans (a) 3.52 % 2.34 % 2.46 % 1.15 % .83 %
Nonperforming assets
at period end $214 $127 $82 $98 $63
Return on average
allocated equity
(a) (57.12)% (35.70)% (32.72)% (8.36)% 4.65 %
Return on average
allocated equity (57.12) (35.70) (32.72) (8.36) 6.04
Average full-time
equivalent employees 489 560 607 728 798
National Banking
Percent change 4Q08 vs.
3Q08 4Q07
Summary of operations
Total revenue (TE) 10.7 % (11.6)%
Provision for loan losses 39.7 49.5
Noninterest expense 142.7 113.9
Loss from continuing operations (409.2) (888.1)
Net loss (409.2) (934.4)
Average loans and leases (a) .8 12.9
Average loans held for sale (a) (15.0) (70.2)
Average deposits (a) (1.1) (2.5)
Net loan charge-offs (a) 36.0 213.6
Net loan charge-offs to average loans (a) N/A N/A
Nonperforming assets at period end 17.4 94.8
Return on average allocated equity (a) N/A N/A
Return on average allocated equity N/A N/A
Average full-time equivalent employees (6.6) (17.3)
Supplementary information
(lines of business)
Real Estate Capital and
Corporate Banking Services
Total revenue (TE) 67.7 % .6 %
Provision for loan losses 54.5 (43.3)
Noninterest expense 4.5 (20.5)
Net (loss) 8.6 62.7
Average loans and leases 1.0 10.7
Average loans held for sale (35.5) (59.3)
Average deposits (.5) (.1)
Net loan charge-offs (19.0) 80.0
Net loan charge-offs to average loans N/A N/A
Nonperforming assets at period end 6.9 60.6
Return on average allocated equity N/A N/A
Average full-time equivalent employees (8.4) (15.5)
Equipment Finance
Total revenue (TE) (17.1)% (49.7)%
Provision for loan losses (48.4) 43.5
Noninterest expense 287.8 263.5
Net (loss) income (922.2) N/M
Average loans and leases (4.6) (11.0)
Average loans held for sale (40.8) 93.3
Average deposits (25.0) (11.8)
Net loan charge-offs 59.4 183.3
Net loan charge-offs to average loans N/A N/A
Nonperforming assets at period end 37.4 172.4
Return on average allocated equity N/A N/A
Average full-time equivalent employees (4.6) (15.4)
Institutional and Capital Markets
Total revenue (TE) 8.1 % 18.3 %
Provision for loan losses 225.0 246.7
Noninterest expense 207.5 183.6
Net (loss) income N/M N/M
Average loans and leases 11.8 29.6
Average loans held for sale (16.0) 38.3
Average deposits (2.5) (7.6)
Net loan charge-offs (recoveries) N/M 533.3
Net loan charge-offs
(recoveries) to average loans N/A N/A
Nonperforming assets at period end (5.2) 266.7
Return on average allocated equity N/A N/A
Average full-time equivalent employees (2.6) (4.1)
Consumer Finance
Total revenue (TE) (9.5)% (12.2)%
Provision for loan losses 46.8 N/M
Noninterest expense 5.4 ___
(Loss) income from continuing operations (66.7) N/M
Net (loss) income (66.7) N/M
Average loans and leases (a) (2.3) 31.7
Average loans held for sale (a) 98.1 (89.5)
Average deposits (a) (7.3) (29.4)
Net loan charge-offs (a) 47.2 457.9
Net loan charge-offs to average loans (a) N/A N/A
Nonperforming assets at period end 68.5 239.7
Return on average allocated equity (a) N/A N/A
Return on average allocated equity N/A N/A
Average full-time equivalent employees (12.7) (38.7)
(a) From continuing operations.
TE = Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful
DATASOURCE: KeyCorp
Web site: https://www.key.com/
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