KeyBank 2006 Annual Report Download - page 43

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43
MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES
At December 31, 2006, Key had $7.6 billion in time deposits of
$100,000 or more. Figure 22 shows the maturity distribution of these
deposits.
Capital
Shareholders’ equity. Total shareholders’ equity at December 31, 2006,
was $7.7 billion, up $105 million from December 31, 2005.
Effective December 31, 2006, Key adopted SFAS No. 158, “Employers’
Accounting for Defined Benefit Pension and Other Postretirement
Plans,” which requires an employer to recognize an asset or liability for
the overfunded or underfunded status, respectively, of its defined benefit
plans. As a result of adopting this guidance, Key recorded an after-tax
charge of $154 million to the accumulated other comprehensive loss
component of shareholders’ equity during the fourth quarter. Additional
information about this new accounting guidance is included in Note 1
FIGURE 22. MATURITY DISTRIBUTION OF
TIME DEPOSITS OF $100,000 OR MORE
December 31, 2006 Domestic Foreign
in millions Offices Office Total
Remaining maturity:
Three months or less $2,513 $1,684 $4,197
After three through
six months 1,062 — 1,062
After six through
twelve months 1,004 — 1,004
After twelve months 1,362 — 1,362
Total $5,941 $1,684 $7,625
(“Summary of Significant Accounting Policies”) under the heading
“Accounting Pronouncements Adopted in 2006” on page 72. Other
factors contributing to the change in shareholders’ equity during 2006
are shown in the Consolidated Statements of Changes in Shareholders’
Equity presented on page 65.
Common shares outstanding. KeyCorp’s common shares are traded on the
New York Stock Exchange under the symbol KEY. At December 31, 2006:
• Book value per common share was $19.30, based on 399.2 million
shares outstanding, compared to $18.69, based on 406.6 million
shares outstanding, at December 31, 2005.
• The closing market price of a KeyCorp common share was $38.03.
This price was 197% of year-end book value per share, and would
produce a dividend yield of 3.63%.
• There were 40,801 holders of record of KeyCorp common shares.
In 2006, the quarterly dividend was $.345 per common share, up from
$.325 per common share in 2005. On January 18, 2007, the quarterly
dividend per common share was increased by 5.8% to $.365, effective
with the March 2007 dividend payment. Figure 37 on page 58 shows the
market price ranges of KeyCorp’s common shares, per common share
earnings and dividends paid by quarter for each of the last two years.
Figure23 compares the price performance of KeyCorp’s common
shares (based on an initial investment of $100 on December 31, 2001,
and assuming reinvestment of dividends) to that of the Standard & Poor’s
500 Index and a group of other banks that constitute KeyCorp’s peer
group. The peer group consists of the banks that make up the Standard
& Poor’s 500 Regional Bank Index and the banks that make up the
Standard & Poor’s500 Diversified Bank Index. KeyCorp is included in
the Standard & Poor’s 500 Index and the peer group.
12/31/01 6/30/02 12/31/02 6/30/03 12/31/03 6/30/04 12/31/04 6/30/05 12/31/05 6/30/06 12/31/06
$50
$100
$150
$200
$250
$300
KeyCorp
S&P 500
Peer Group
KeyCorp
S&P 500
Peer Group
AVERAGE ANNUAL TOTAL RETURNS
KeyCorp 14.3%
S&P 500 7.6%
Peer Group 11.8%
$50
$100
$150
$200
$250
$300
FIGURE 23. COMMON SHARE PRICE PERFORMANCE (2001-2006)
a
a
Shareprice performance is not necessarily indicative of futureprice performance.
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