KeyBank 2002 Annual Report Download

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Key
Key
BOARD INCREASES DIVIDEND FOR 38TH CONSECUTIVE YEAR
2002 KeyCorp Annual Report
Aligned
toWIN
KEY FOCUSES
ON BECOMING
CLIENTS’
TRUSTED ADVISOR
Also់
Solid Progress
Three reasons why investors
should be confident about
Key’s future
THE ‘WHO, WHAT
&WHY’ OF UNDERSTANDING
CLIENTS BETTER
NEXT PAGE

Table of contents

  • Page 1
    BOARD INCREASES DIVIDEND FOR 38TH CONSECUTIVE YEAR Key Aligned to WIN KEY FOCUSES ON BECOMING CLIENTS' TRUSTED ADVISOR Also់ 2002 KeyCorp Annual Report Solid Progress Three reasons why investors should be confident about Key's future THE 'WHO, WHAT & WHY' OF UNDERSTANDING CLIENTS BETTER NEXT...

  • Page 2
    ... paid Book value at year end Market price at year end Weighted average common shares (000) Weighted average common shares and potential common shares (000) AT DECEMBER 31, Loans Earning assets Total assets Deposits Total shareholders' equity Common shares outstanding (000) PERFORMANCE RATIOS Return...

  • Page 3
    ... lines of business. The adoption of a balanced scorecard should help Key better execute its strategy. 19 Financial Review GO Management discusses and analyzes Key's financial condition and the results of its operations. Key discusses its future performance throughout this report. While management...

  • Page 4
    .... KeyCorp Investor Relations: 127 Public Square, Cleveland, OH 44114-1306; (216) 689-4221 . Online: www.key.com for product, corporate and financial information and news releases. Transfer Agent/Registrar and Shareholder Services: Computershare Investor Services, Attn: Shareholder Communications...

  • Page 5
    ...about our Intermediate Fixed Income management, contact Victory Capital Management at 1-877-660-4400 or VictoryConnect.com. Victory Capital Management Inc. is a member of the Key financial network. • NOT FDIC INSURED • NO BANK GUARANTEE • INVESTMENTS MAY LOSE VALUE PREVIOUS PAGE SEARCH BACK...

  • Page 6
    Three valuable qualities give Key a competitive edge: INTEGRITY, CLIENT FOCUS, ALIGNMENT Solid 4 PREVIOUS PAGE SEARCH BACK TO CONTENTS NEXT PAGE

  • Page 7
    ... rates in decades. Key's net interest margin of 3.97 percent is notable, the result of efforts begun in 2001 to prune low-return loans and in 2002 to reduce funding costs (see charts below). Banks also experienced light client demand for capital markets-based prod- ucts and services, especially...

  • Page 8
    ... management of publicly traded corporations. That from a survey released in June 2002 by U.S. Trust, an investment management and trust company. NON-NEGOTIABLE Excerpt from a memo by Meyer to Key's Executive Council in August 2002 "Our company will: • comply with Generally Accepted Accounting...

  • Page 9
    ...2002. Alignment - Pulling It All Together them through consistent execution. The tactics: • Know our clients and markets, • develop profitable relationships, • achieve service excellence, • manage business risks, • leverage technology, • continuously improve and • build human capital...

  • Page 10
    ... a new executive management team." • • The transaction signaled Key's intention to invest in deposit-rich franchises that build market share. The company also bought Conning Asset Management of Hartford, CT, to expand the solutions Key provides to selected commercial real estate clients. (To...

  • Page 11
    ... capital levels and a tradition of paying dividends, provided some protection to investors in bank shares. In fact, the industry earned record profits of more than $105 billion in 2002. Still, the total return on shares of banks making up the Standard & Poor's 500 Banks Index finished the year...

  • Page 12
    ... REAL ESTATE NATIONAL EQUIPMENT FINANCE KEY Capital Partners HIGH NET WORTH CAPITAL MARKETS Robert G. Jones, President HIGH NET WORTH professionals offer banking; estate, financial and retirement planning; brokerage; trust services; asset management; insurance services and charitable giving...

  • Page 13
    ...Average Balances Loans ...$ 29,278 Total assets ...30,568 Deposits...3,384 29% 54% 40% â- Corporate Banking REVENUE (TE) 100% = $1,109 mm â- National Commercial Real Estate â- National Equipment Finance NET INCOME 100% = $156 mm in millions 18% 23% Total Trust and Brokerage Assets $126...

  • Page 14
    Art Work of Employees skillfully apply a set of common business tactics designed to align the company around clients PREVIOUS PAGE SEARCH 12 BACK TO CONTENTS NEXT PAGE

  • Page 15
    ... Banking implemented predictive modeling to better identify clients who were at KEY'S BUSINESS TACTICS Know our clients and markets • Develop profitable relationships Achieve service excellence • Manage business risks Leverage technology • Continuously improve • Build human capital pany...

  • Page 16
    ... DSW. Why KeyBank? Ben and Bob have worked with Key since they launched Flying Fish 10 years ago with a single credit card and a business checking account. As the firm grew in size, Key helped by suggesting a business line of credit; sweep accounts that would make better use of their money; as well...

  • Page 17
    ... home equity lines and carry credit card balances - the "what." They're preoccupied with saving for their children's education and are comfortable with technology - the "why." Knowing this, Key can introduce them to several possible financial solutions through Key.com. The company expects to offer...

  • Page 18
    ... its annual 500 ranking, for four years running. Leveraging technology increases productivity and enriches clients' interactions with the company. • Key.com, Key's award-winning internet site, offered clients new features in 2002, such as online account statements, additional electronic transfer...

  • Page 19
    ... • Small Business built customized retention plans for its highest-performing sales and sales support employees. Managers reviewed the plans with employees every 60 days. Result in 2002: The line retained more than 95 percent of targeted employees. • McDonald Financial Group created opportunity...

  • Page 20
    ... client relationships and, ultimately, hurt the bottom line. By paying more attention to controllable factors, such as providing ample training for employees or selecting the right sites for new offices, managers are better able to achieve the outcomes their companies want. Scorecard development...

  • Page 21
    ... Key's 2002 Performance Line of Business Results Results of Operations Net Interest Income Market Risk Management Noninterest Income Noninterest Expense Income Taxes Financial Condition Loans Securities Asset Quality Deposits and Other Sources of Funds Liquidity Capital Fourth Quarter Results Report...

  • Page 22
    ...the Internal Revenue Service is challenging Key's tax treatment of certain leveraged lease investments. This and other challenges by tax authorities may result in adjustments to the timing or amount of Key's taxable income or deductions or the allocation of income among tax jurisdictions. Management...

  • Page 23
    ... syndicated lending businesses, and increasing the allowance for loan losses. Forward-looking statements This report may contain "forward-looking statements" about issues like anticipated earnings, anticipated levels of net loan charge-offs and nonperforming assets and anticipated improvement in...

  • Page 24
    ... relationships with our clients. We will focus on our "footprint" businesses that serve individuals, small businesses and middle market companies. In addition, we intend to focus nationwide on our commercial real estate lending, asset management, home equity lending and equipment leasing businesses...

  • Page 25
    ... Book value at year end Market price at year end Dividend payout ratio Weighted average common shares (000) Weighted average common shares and potential common shares (000) AT DECEMBER 31, Loans Earning assets Total assets Deposits Long-term debt Shareholders' equity Full-time equivalent employees...

  • Page 26
    ... MAJOR BUSINESS GROUPS - TAXABLE-EQUIVALENT REVENUE AND NET INCOME Year ended December 31, dollars in millions REVENUE (TAXABLE EQUIVALENT) Key Consumer Banking Key Corporate Finance Key Capital Partners Other Segments Total segments Reconciling Items Total NET INCOME (LOSS) Key Consumer Banking Key...

  • Page 27
    ... Small Business lines and higher fees from mortgage lending and electronic banking services. The growth in deposit service charges resulted from new pricing implemented in mid-2001 in connection with Key's competitiveness improvement initiative, but was moderated by the introduction of free checking...

  • Page 28
    ...Equipment Finance line of business in 2002, compared with gains in the prior year. Lower fees generated by Corporate Banking also contributed to the decline. These adverse results more than offset increases in nonyield-related loan fees and loan sale gains in the National Commercial Real Estate line...

  • Page 29
    ... 3,480 $(362) (583) 245 (6.9)% (6.5) 6.7 ADDITIONAL KEY CAPITAL PARTNERS DATA December 31, 2002 dollars in millions Assets under management Nonmanaged and brokerage assets High Net Worth sales personnel $61,694 64,968 807 in the net effect of funds transfer pricing. The adverse effects of these...

  • Page 30
    MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES FIGURE 6 AVERAGE BALANCE SHEETS, NET INTEREST INCOME AND YIELDS/RATES Year ended December 31, 2002 dollars in millions ASSETS Loans a,b Commercial, financial and agricultural Real estate - ...

  • Page 31
    MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES 1999 Average Balance Interest Yield/ Rate Average Balance 1998 Interest Yield/ Rate Average Balance 1997 Interest Yield/ Rate Compound Annual Rate of Change (1997-2002) Average Balance...7,101...

  • Page 32
    ... Net interest margin. Key's net interest margin improved over the past two years, primarily because: • we benefited from declining short-term interest rates; • the interest rate spread on our total loan portfolio improved as we continued to focus on those businesses, such as home equity lending...

  • Page 33
    ... NET INTEREST INCOME CHANGES 2002 vs 2001 in millions INTEREST INCOME Loans Tax-exempt investment securities Securities available for sale Short-term investments Other investments Total interest income (taxable equivalent) INTEREST EXPENSE Money market deposit accounts Savings deposits NOW accounts...

  • Page 34
    ... in service charges on deposit accounts and a $10 million rise in letter of credit and nonyield-related loan fees. These positive results were offset in part by a $42 million reduction in income from trust and investment services and a $29 million decrease in net securities gains. In 2001, Key...

  • Page 35
    ...Year ended December 31, dollars in millions Trust and investment services income Service charges on deposit accounts Investment banking and capital markets income Letter of credit and loan fees Corporate-owned life insurance income Electronic banking fees Net securities gains (losses) Gain from sale...

  • Page 36
    ... half of 2002 as free checking products were introduced in the third quarter and rolled out to all of Key's markets by the end of the year. Corporate-owned life insurance income. Income from corporate-owned life insurance, representing a tax-deferred increase in cash surrender values and tax-exempt...

  • Page 37
    ... Year ended December 31, dollars in millions Personnel Net occupancy Computer processing Equipment Marketing Professional fees Amortization of intangibles Restructuring charges (credits) Other expense: Postage and delivery Telecommunications Equity- and gross receipts-based taxes OREO expense, net...

  • Page 38
    ... Mortgage Company, L.P. and National Realty Funding L.C. in 2000. Over the past two years, we have also sold loans and referred new business to an asset-backed commercial paper conduit. These sales and referrals were curtailed in 2002 to keep the loans on Key's balance sheet. For more information...

  • Page 39
    ...nancing Total commercial loans CONSUMER Real estate - residential mortgage Home equity Credit card Consumer - direct Consumer - indirect: Automobile lease financing Automobile loans Marine Other Total consumer - indirect loans Total consumer loans LOANS HELD FOR SALE Total a b 2002 % of Total 27...

  • Page 40
    ... loan had an outstanding balance of $31 million. Key conducts its commercial real estate lending business through two primary sources: a 12-state banking franchise and National Commercial Real Estate (a national line of business that cultivates relationships both within and beyond the branch system...

  • Page 41
    ... AT PERIOD END Retail KeyCenters and other sources Champion Mortgage Company Key Home Equity Services division National Home Equity line of business Total Nonperforming loans at year end Net charge-offs for the year Yield for the year 2002 2001 2000 1999 1998 1997 $ 8,867 2,210 2,727 4,937...

  • Page 42
    ... these securities nor principal investments have stated maturities. Asset quality Key has a multi-faceted program to manage asset quality. Our professionals: • evaluate and monitor credit quality and risk in credit-related assets; • develop commercial and consumer credit policies and systems...

  • Page 43
    ... including middle market, showed signs of stability or modest improvement. At the same time, the media and commercial real estate portfolios experienced higher levels of watch credits. These changes reï¬,ect the ï¬,uctuations that occur in loan portfolios from quarter to quarter. Management does not...

  • Page 44
    ... Real estate - commercial mortgage Real estate - construction Commercial lease financing Total commercial loans Real estate - residential mortgage Home equity Credit card Consumer - direct Consumer - indirect lease financing Consumer - indirect other Total consumer loans Loans held for sale...

  • Page 45
    ...-offs for 2002, but represented only 3% of Key's commercial loans at the end of the year. As shown in Figure 25, the increase in commercial loan net charge-offs was offset in part by a decrease in the level of net charge-offs in the consumer loan portfolio, primarily in the home equity and consumer...

  • Page 46
    ...estate loansa Commercial lease financing Total commercial loans Real estate - residential mortgage Home equity Credit card Consumer - direct Consumer - indirect lease financing Consumer - indirect other Total consumer loans Net loans charged off Provision for loan losses Allowance related to loans...

  • Page 47
    ... commercial loans Real estate - residential mortgage Home equity Consumer - direct Consumer - indirect lease financing Consumer - indirect other Total consumer loans Total nonperforming loans OREO Allowance for OREO losses OREO, net of allowance Other nonperforming assets Total nonperforming assets...

  • Page 48
    ... funds are periodically transferred back to the checking accounts to cover checks presented for payment or withdrawals. As a result of this program, average deposit balances for 2002 include NOW accounts of $4.4 billion and demand deposits of $4.9 billion that are classified as money market deposit...

  • Page 49
    ... quarter. Management also expects Key Bank USA to have restored dividend paying capacity during the first quarter. Assuming KBNA had distributed the $365 million to KeyCorp as of February 15, 2003, as of that date, KeyCorp would have had approximately $1.5 billion of cash or short-term investments...

  • Page 50
    ... OBLIGATIONS AND OFF-BALANCE SHEET COMMITMENTS December 31, 2002 in millions Cash obligations: Long-term debt Noncancelable leases Total Lending-related and other off-balance sheet commitments: Commercial, including real estate Home equity Federal funds purchased and securities sold under repurchase...

  • Page 51
    .... • The closing sales price of a KeyCorp common share on the New York Stock Exchange was $25.14. This price was 156% of year-end book value per share, and would produce a dividend yield of 4.77%. • There were 40,166 holders of record of KeyCorp common shares. In 2002, the quarterly dividend was...

  • Page 52
    ...taken to increase Key's allowance for loan losses and to strengthen the balance sheet. The section entitled "Financial performance," which begins on page 21, provides more information about these charges. On an annualized basis, Key's return on average total assets for the fourth quarter of 2002 was...

  • Page 53
    ... end Market price: High Low Close Weighted average common shares (000) Weighted average common shares and potential common shares (000) AT PERIOD END Loans Earning assets Total assets Deposits Long-term debt Shareholders' equity Full-time equivalent employees Branches PERFORMANCE RATIOS Return on...

  • Page 54
    ... Executive Vice President and Chief Financial Officer REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS Shareholders and Board of Directors KeyCorp We have audited the accompanying consolidated balance sheets of KeyCorp and subsidiaries ("Key") as of December 31, 2002 and 2001, and the related...

  • Page 55
    ... Net loans Premises and equipment Goodwill Other intangible assets Corporate-owned life insurance Accrued income and other assets Total assets LIABILITIES Deposits in domestic offices: NOW and money market deposit accounts Savings deposits Certificates of deposit ($100,000 or more) Other time...

  • Page 56
    ...Trust and investment services income Service charges on deposit accounts Investment banking and capital markets income Letter of credit and loan fees Corporate-owned life insurance income Electronic banking fees Net securities gains (losses) Gain from sale of credit card portfolio Other income Total...

  • Page 57
    ... 31, 1999 Net income Other comprehensive income (losses): Net unrealized gains on securities available for sale, net of income taxes of $80a Foreign currency translation adjustments Total comprehensive income Common Shares $492 Capital Surplus $1,412 Retained Earnings $5,833 1,002 Loans to ESOP...

  • Page 58
    ...gain from sale of credit card portfolio Net securities (gains) losses Net (gains) losses from principal investing Net gains from loan securitizations and sales Deferred income taxes Net (increase) decrease in mortgage loans held for sale Net (increase) decrease in trading account assets Net increase...

  • Page 59
    ... banking, commercial leasing, investment management, consumer finance and investment banking products and services to individual, corporate and institutional clients through three major business groups: Key Consumer Banking, Key Corporate Finance and Key Capital Partners. As of December 31, 2002...

  • Page 60
    ...CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES losses on trading account securities are reported in "investment banking and capital markets income" on the income statement. Securities available for sale. These include securities that Key intends to hold for an indefinite period of time...

  • Page 61
    .... Net gains and losses resulting from securitizations are recorded in "other income" on the income statement. A servicing asset may also be recorded if Key either purchases or retains the right to service these loans and receives related fees that exceed the going market rate. Income earned under...

  • Page 62
    ...conducted at least annually. Key has determined that its reporting units for purposes of this testing are its major business groups: Key Consumer Banking, Key Corporate Finance and Key Capital Partners. The first step in this testing requires that the fair value of each reporting unit be determined...

  • Page 63
    ... assets" on the balance sheet, and derivatives with a negative fair value are included in "accrued expense and other liabilities." Changes in fair value (including payments and receipts) are recorded in "investment banking and capital markets income" on the income statement. EMPLOYEE STOCK OPTIONS...

  • Page 64
    ... all marketing-related costs, including advertising costs, as incurred. RESTRUCTURING CHARGES Key may record restructuring charges in connection with certain events or transactions, including business combinations, changes in Key's strategic plan, changes in business conditions that may result in...

  • Page 65
    ...ficant impact of this new guidance will be on Key's balance sheet since consolidating additional entities will increase assets and liabilities and change leverage and capital ratios, as well as asset concentrations. Additional information is summarized in Note 8 ("Loan Securitizations and Variable...

  • Page 66
    ..., Connecticut. Conning's mortgage loan and real estate business originates, securitizes and services multi-family, retail, industrial and office property mortgage loans on behalf of pension fund and life insurance company investors. At the date of acquisition, Conning had net assets of $17 million...

  • Page 67
    ...Victory family of mutual funds. This line of business also provides administrative services for retirement plans. High Net Worth offers financial, estate and retirement planning and asset management services to assist high-net-worth clients with their banking, brokerage, trust, portfolio management...

  • Page 68
    ... of consolidated net income Percent of total segments net income AVERAGE BALANCES Loans Total assetsa Deposits OTHER FINANCIAL DATA Expenditures for additions to long-lived assetsa Net loan charge-offs Return on average allocated equity Full-time equivalent employees a Key Consumer Banking 2002...

  • Page 69
    ... LINES OF BUSINESS) Year ended December 31, dollars in millions Total revenue (taxable equivalent) Provision for loan losses Noninterest expense Net income Average loans Average deposits Net loan charge-offs Return on average allocated equity Full-time equivalent employees $ Corporate Banking 2002...

  • Page 70
    ... OF BUSINESS) Year ended December 31, dollars in millions Total revenue (taxable equivalent) Provision for loan losses Noninterest expense Net income Average loans Average deposits Net loan charge-offs Return on average allocated equity Full-time equivalent employees Victory Capital Management 2002...

  • Page 71
    ... or as trading account assets. "Other securities" held in the available for sale portfolio primarily are marketable equity securities, including an internally managed portfolio of bank common stock investments. "Other securities" held in the other investments portfolio are equity securities that do...

  • Page 72
    ...cant Accounting Policies") under the heading "Loan Securitizations" on page 59. December 31, 2002 dollars in millions Carrying amount (fair value) of retained interests Weighted-average life (years) PREPAYMENT SPEED ASSUMPTIONS (ANNUAL RATE) Impact on fair value of 1% CPR (education and home equity...

  • Page 73
    ... funds. Key Affordable Housing Corporation ("KAHC") forms unconsolidated limited partnerships (funds) which invest in LIHTC projects. Interests in these funds are offered to qualified investors, who pay a fee to KAHC for a guaranteed return. Key also earns syndication and asset management fees...

  • Page 74
    ...CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES Commercial Real Estate Investments. Through the National Commercial Real Estate line of business, Key provides real estate financing for new construction, acquisition and rehabilitation projects. In certain of these unconsolidated projects...

  • Page 75
    ... business group are as follows: Key Consumer Banking $446 34 - $480 Key Corporate Finance $202 - 5 $207 Key Capital Partners $455 - - $455 in millions BALANCE AT DECEMBER 31, 2001 Additional goodwill: Union Bankshares acquisition Conning Asset Management acquisition BALANCE AT DECEMBER 31, 2002...

  • Page 76
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES 11. SHORT-TERM BORROWINGS Selected financial information pertaining to the components of Key's short-term borrowings is as follows: dollars in millions FEDERAL FUNDS PURCHASED Balance at year end Average during the year Maximum ...

  • Page 77
    ..., direct financing and sales type leases. Long-term advances from the Federal Home Loan Bank had weighted average interest rates of 1.71% at December 31, 2002, and 2.19% at December 31, 2001. These advances, which had a combination of fixed and ï¬,oating interest rates, were secured by real estate...

  • Page 78
    ...capital, terminate Federal Deposit Insurance Corporation ("FDIC") deposit insurance, and mandate the appointment of a conservator or receiver in severe cases. As of December 31, 2002, KeyCorp and its bank subsidiaries met all capital requirements. Federal bank regulators apply certain capital ratios...

  • Page 79
    ... Capitalized Under Federal Deposit Insurance Act Amount Ratio Actual dollars in millions December 31, 2002 TOTAL CAPITAL TO NET RISK-WEIGHTED ASSETS Key KBNA Key Bank USA TIER 1 CAPITAL TO NET RISK-WEIGHTED ASSETS Key KBNA Key Bank USA TIER 1 CAPITAL TO AVERAGE ASSETS Key KBNA Key Bank USA December...

  • Page 80
    ...Accounting Policies") under the heading "Employee Stock Options" on page 61. 16. EMPLOYEE BENEFITS PENSION PLANS Net periodic and total net pension cost (income) for all funded and unfunded plans include the following components. Year ended December 31, in millions Service cost of benefits earned...

  • Page 81
    ... estimates that a 25 basis point change in either or both of these assumed rates would change net pension cost for 2003 by less than $1 million. Despite the 2002 decline in the fair value of plan assets, at December 31, Key's qualified plan was sufficiently funded under the Employee Retirement...

  • Page 82
    ... value of plan assets. 17. INCOME TAXES Income taxes included in the consolidated statements of income are summarized below. Key files a consolidated federal income tax return. Year ended December 31, in millions Currently payable: Federal State Deferred: Federal State Total income tax expensea...

  • Page 83
    ...Credits) $(11) 3 (1) $ (9) Cash Payments $13 9 - $22 December 31, 2002 $ 3 27 - $30 • standardizing product offerings and internal processes; • consolidating operating facilities and service centers; and • outsourcing certain noncore activities. Management expected the initiative to reduce Key...

  • Page 84
    ...Group Holdings' ("Reliance's parent") so-called "claims-paying ability" were to fall below investment grade. Key Bank USA also entered into an agreement with Swiss Re and Reliance whereby Swiss Re agreed to issue to Key Bank USA an insurance policy on the same terms and conditions as the 4011 Policy...

  • Page 85
    ... balance of loans outstanding at December 31, 2002. If payment is required under this program, Key would have an interest in the collateral underlying the commercial mortgage loan on which the loss occurred. Return guarantee agreement with Low-Income Housing Tax Credit ("LIHTC") investors. Key...

  • Page 86
    ... debt issuance, certain lease and insurance obligations, investments and securities, and certain leasing transactions involving clients. Relationship with MasterCard International Inc. and Visa U.S.A. Inc. KBNA and Key Bank USA are members of MasterCard International Inc. and Visa U.S.A. Inc...

  • Page 87
    ... uses "pay fixed/receive variable" interest rate swaps to manage the interest rate risk associated with anticipated sales or securitizations of certain commercial real estate loans. These swaps protect against a possible short-term decline in the value of the loans that could result from changes in...

  • Page 88
    ... amount shown for "Loans, net of allowance." The estimated fair values of residential real estate mortgage loans and deposits do not take into account the fair values of long-term client relationships, which are integral parts of the related financial instruments. The estimated fair values of these...

  • Page 89
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES 22. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY CONDENSED BALANCE SHEETS December 31, in millions ASSETS Interest-bearing deposits with KBNA Loans and advances to subsidiaries: Banks Nonbank subsidiaries Investment in ...

  • Page 90
    ... CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FINANCING ACTIVITIES Net increase (decrease) in short-term borrowings Net proceeds from issuance of long-term debt Payments on long-term debt Loan payment received from ESOP trustee Purchases of treasury shares Proceeds from issuance of common stock...

  • Page 91
    ...4221 Annual Report, Form 10-K and other financial reports (888) 539-3322 Transfer Agent/Registrar and Shareholder Services (800) 539-7216 BY MAIL Corporate Headquarters KeyCorp 127 Public Square Cleveland, OH 44114-1306 KeyCorp Investor Relations 127 Public Square; OH-01-27-1113 Cleveland, OH 44114...

  • Page 92
    ...." With time always at a premium, Dr. Caniano appreciates having just one number to call, whether to refinance her mortgage or pay dues to international surgical associations in different currencies. She sums up the client-first service she receives from McDonald Financial Group: "Everything...