KeyBank 2009 Annual Report Download - page 51

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MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES
FIGURE 26. MATURITY DISTRIBUTION OF
TIME DEPOSITS OF $100,000 OR MORE
December 31, 2009 Domestic Foreign
in millions Offices Office Total
Remaining maturity:
Three months or less $ 2,267 $768 $ 3,035
After three through
six months 4,261 — 4,261
After six through
twelve months 2,798 — 2,798
After twelve months 1,628 — 1,628
Total $10,954 $768 $11,722
Capital
At December 31, 2009, our shareholders’ equity was $10.7 billion, up
$183 million from December 31, 2008. Certain factors that contributed
to the change in our shareholders’ equity over the past three years are
discussed below. For other factors that contributed to the change, see
the statement of changes in equity.
Supervisory Capital Assessment
Program and our capital-generating activities
During 2009, we took several actions to further strengthen our capital
position in connection with the results of the SCAP assessment, which
required us to generate $1.8 billion of additional Tier 1 common equity.
These actions included an “at-the-market” offering of common shares,
aSeries A Preferred Stock exchange offer for common shares, an
institutional capital securities exchange offer for common shares, a
retail capital securities exchange offer for common shares, the sale of
certain securities, and a reduction of dividend and interest obligations
on the exchanged securities. More specific information on the SCAP
assessment and the related actions we have taken to raise capital is
included in Note 15 (“Shareholders’ Equity”).
Wehave complied with the requirements of the SCAP assessment,
generating total Tier 1 common equity in excess of $2.4 billion.
Successful completion of our 2009 capital transactions has strengthened
our capital framework, having improved KeyCorp’s Tier 1 common
equity ratio, which will benefit us in the event that economic conditions
worsen or any recovery of economic conditions is delayed.
Preferred stock private exchanges
During 2009, we entered into agreements with certain institutional
shareholders who had contacted us to exchange Series A Preferred Stock
held by the institutional shareholders for common shares. More specific
information on these preferred stock exchanges is included in Note 15.
Dividends
During 2009, we made four quarterly dividend payments aggregating
$125 million to the U.S. Treasury on our Series B Preferred Stock as a
participant in the U.S. Treasury’s CPP.
In May 2009, the Board resolved to reduce our quarterly dividend on
common shares to $.01 per share ($.04 annualized) from $.0625 per
share ($.25 annualized), commencing in the second quarter of 2009.
Common shares outstanding
Our common shares are traded on the New York Stock Exchange
under the symbol KEY. At December 31, 2009:
• Book value per common share was $9.04, based on 878.5 million
shares outstanding, compared to $14.97, based on 495.0 million
shares outstanding, at December 31, 2008.
• Tangible book value per common sharewas $7.94, compared to
$12.41 at December 31, 2008.
•Therewere36,057 holders of recordof our common shares at
December 31, 2009.
Figure 44 in the section entitled “Fourth Quarter Results” shows the
market price ranges of our common shares, per common share earnings
and dividends paid by quarter for each of the last two years.
Figure27 compares the price performance of our common shares
(based on an initial investment of $100 on December 31, 2004, and
assuming reinvestment of dividends) with that of the Standard & Poor’s
500 Index and a group of other banks that constitute our peer group.
12/31/04 6/30/05 12/31/05 6/30/06 12/31/06 6/30/07 12/31/07 6/30/08 12/31/08 6/30/09 12/31/09
$0
$50
$100
$150
$200
$250
$0
$50
$100
$150
$200
$250
AVERAGE ANNUAL TOTAL RETURNS
KeyCorp (22.02)%
S&P 500 3.13
Peer Group (5.86)
KeyCorp
S&P 500
Peer Group
FIGURE 27. COMMON SHARE PRICE PERFORMANCE (2004-2009)
(a)
(a)
Share price performance is not necessarily indicative of future price performance.
Source: SNL Financial