KeyBank 2005 Annual Report Download - page 65

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Key completed the following acquisitions during the past three years. In the
case of each acquisition, the terms of the transaction were not material.
ORIX Capital Markets, LLC
On December 8, 2005, Key acquired the commercial mortgage-backed
securities servicing business of ORIX Capital Markets, LLC (“ORIX”),
headquartered in Dallas, Texas. ORIX had a servicing portfolio of
approximately $27 billion at the date of acquisition.
Malone Mortgage Company
On July 1, 2005, Key acquired Malone Mortgage Company, a mortgage
company headquartered in Dallas, Texas that serviced approximately
$1.3 billion in loans at the date of acquisition.
American Express Business Finance Corporation
On December 1, 2004, Key acquired American Express Business Finance
Corporation (“AEBF”), the equipment leasing unit of American Express’
small business division. AEBF had commercial loan and lease financing
receivables of approximately $1.5 billion at the date of acquisition.
EverTrust Financial Group, Inc.
On October 15, 2004, Key acquired EverTrust Financial Group, Inc.
(“EverTrust”), the holding company for EverTrust Bank, a state-chartered
bank headquartered in Everett, Washington. EverTrust had assets of
approximately $780 million and deposits of approximately $570 million
at the date of acquisition. On November 12, 2004, EverTrust Bank
was merged into KeyBank National Association (“KBNA”).
Sterling Bank & Trust FSB
Effective July 22, 2004, Key purchased ten branch offices and
approximately $380 million of deposits of Sterling Bank & Trust FSB,
a federally-chartered savings bank headquartered in Southfield, Michigan.
NewBridge Partners LLC
On July 1, 2003, Key acquired NewBridge Partners LLC, an investment
management firm headquartered in New York City with managed
assets of approximately $1.8 billion at the date of acquisition.
ACQUISITION PENDING
Austin Capital Management, Ltd.
On January 13, 2006, Key entered into a definitive agreement to acquire
Austin Capital Management, Ltd., an investment firm headquartered in
Austin, Texas with approximately $900 million in assets under
management at December 31, 2005. The terms of the transaction,
which is expected to close in the first quarter of 2006, are not material.
3. ACQUISITIONS
64
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES
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CONSUMER BANKING
Community Banking includes Retail Banking, Small Business and
McDonald Financial Group.
Retail Banking provides individuals with branch-based deposit and
investment products, personal finance services and loans, including
residential mortgages, home equity and various types of installment loans.
Small Business provides businesses that typically have annual sales
revenues of $10 million or less with deposit, investment and credit
products, and business advisory services.
McDonald Financial Group offers financial, estate and retirement
planning, and asset management services to assist high-net-worth clients
with their banking, brokerage, trust, portfolio management, insurance,
charitable giving and related needs.
Consumer Finance includes Indirect Lending, Commercial Floor Plan
Lending and National Home Equity.
Indirect Lending offers loans to consumers through dealers. This
business unit also provides federal and private education loans to
students and their parents and processes payments on loans that private
schools make to parents.
Commercial Floor Plan Lending finances inventory for automobile and
marine dealers.
National Home Equity provides both prime and nonprime mortgage and
home equity loan products to individuals. These products originate
outside of Key’s retail branch system. This business unit also works with
home improvement contractors to provide home equity and home
improvement solutions.
CORPORATE AND INVESTMENT BANKING
Corporate Banking provides products and services to large corporations,
middle-market companies, financial institutions and government
organizations. These products and services include commercial lending,
treasury management, investment banking, derivatives and foreign exchange,
equity and debt underwriting and trading, and syndicated finance.
Through its Victory Capital Management unit, Corporate Banking also
manages or gives advice regarding investment portfolios for a national
client base, including corporations, labor unions, not-for-profit
organizations, governments and individuals. These portfolios may be
managed in separate accounts, common funds or the Victory family of
mutual funds.
KeyBank Real Estate Capital provides construction and interim lending,
permanent debt placements and servicing, and equity and investment
banking services to developers, brokers and owner-investors. This line of
business deals exclusively with nonowner-occupied properties (i.e., generally
properties in which the owner occupies less than 60% of the premises).
4. LINE OF BUSINESS RESULTS