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8-K - FORM 8-K - KEYCORP /NEW/l41644e8vk.htm
EX-99.1 - EX-99.1 - KEYCORP /NEW/l41644exv99w1.htm
EX-99.2 - EX-99.2 - KEYCORP /NEW/l41644exv99w2.htm
Exhibit 99.3
Consolidated Balance Sheets
(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  

 


 

Consolidated Statements of Income
(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.